<PAGE> 1
June 30, 1995
SEMI-ANNUAL REPORT
NML
Variable
Annuity
Account B
I N D I V I D U A L R E T I R E M E N T A N N U I T I E S
T A X D E F E R R E D A N N U I T I E S
N O N T A X - Q U A L I F I E D A N N U I T I E S
N O R T H W E S T E R N M U T U A L S E R I E S F U N D , I N C.
Northwestern
Mutual Life(R)
720 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
<PAGE> 2
NORTHWESTERN MUTUAL SERIES FUND, INC.
<TABLE>
<CAPTION>
DIRECTORS
<S><C>
James D. Ericson . . President and Chief Executive Officer, Northwestern Mutual Life,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee
Martin F. Stein . . . . . . . . . . . Chairman of the Board, EyeCare One Corporation,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee
John K. MacIver . . . . . . . . . Partner, Michael Best & Friedrich Attorneys at Law,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee
Stephen N. Graff . . . . . . . . . . . . . . . Retired Partner, Arthur Andersen & Co.,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee
William J. Blake . . . . . . . . . . . . . . . Chairman, Blake Financial Corporation,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee
OFFICERS
James D. Ericson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President
Mark G. Doll . . . . . . . . . . . . . . . . . . . . . . . Vice President & Treasurer
Merrill C. Lundberg . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary
Gary E. Long . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Controller
</TABLE>
This report is submitted for the general information of owners of Northwestern
Mutual Life Variable Annuity Account B contracts. This report is not
authorized for distribution to prospective purchasers of variable annuity
contracts unless it is accompanied by an effective prospectus. Northwestern
Mutual Life variable annuity contracts are sold through individuals who, in
addition to being licensed life insurance agents of Northwestern Mutual Life,
are registered representatives of Northwestern Mutual Investment Services,
Inc., a wholly-owned subsidiary of Northwestern Mutual Life and a registered
broker-dealer under the Securities Exchange Act of 1934 and a member of the
National Association of Securities Dealers, Inc.
Northwestern
Mutual Life(R)
PO Box 3095
Milwaukee WI 53201-3095
Forwarding and Return Postage Guaranteed
Address Correction Requested
<PAGE> 3
CONTRACT OWNER PRIVILEGES
FREE TRANSFERS AMONG PORTFOLIOS
Same day transfers are permitted among our investment portfolios by FAX
414-299-2632. The appropriate form must be used. A blank form is included at the
end of this report. Additional forms are available from your Northwestern Mutual
Life Agent.
AUTOMATIC INVESTMENT PLAN
Under our Electronic Funds Transfer (EFT) Plan, you can set up regular
investments from your bank checking or NOW account.
AUTOMATIC DOLLAR COST AVERAGING PLAN
This plan automatically transfers money from the Money Market Portfolio to one
or several other portfolios each month. Regular amounts transferred at regular
intervals ensures that more units will be purchased when unit values are low,
and fewer units will be purchased when unit values are high, thereby averaging
our purchase prices.
SPECIAL WITHDRAWAL PRIVILEGE
For contracts with surrender charges, this liquidity feature allows you to avoid
them by withdrawing the lesser of 10% of the contract accumulation value, or
100% of contract earnings. (Contract must be at least one year old and the
accumulation value must be $10,000 minimum as of the most recent contract
anniversary date to qualify.)
OPTIONAL DISABILITY WAIVER BENEFIT
For a small additional premium and subject to meeting underwriting requirements,
considerations will continue to be paid into your contract by Northwestern
Mutual on your behalf should you become totally disabled.
CONTRACT OWNERS COMMUNICATIONS
Confirmation Statements following each transaction and quarterly Summary
Statements provide you with regular investment data. In addition, you will
receive timely economic and market summaries in our quarterly newsletter, VA
Perspectives.
CONTACT YOUR NORTHWESTERN MUTUAL AGENT IF YOU WISH TO LEARN MORE ABOUT FREE
TRANSFERS, AUTOMATIC INVESTING, DOLLAR COST AVERAGING, OR ANY OF THE OTHER
PRIVILEGES DESCRIBED ABOVE.
<PAGE> 4
TO OUR CONTRACT OWNERS:
Last year's rise in interest rates dampened the U.S. economy's strength during
the first half of 1995. While economic indicators showed some underlying
strength, the country's economic foundations revealed some cracks. Among the
economic sectors, housing appeared weaker during the first half, but likely will
get a needed boost from lower interest rates. Fitting with a softer economy,
automobile sales continued to drag. Consumers reacted to a tailing off in the
number of new jobs and the perception that layoffs and corporate downsizing were
affecting economic prosperity. Indeed, this was reflected in declining
manufacturing activity that left businesses shackled with large inventories of
unsold goods. This in turn meant cutbacks in production schedules that further
eroded job growth and consumer incomes.
The Federal Reserve Board's fears of a pickup in price levels prompted the
central bank to continue targeting a "soft landing" for the economy. Though the
policy has helped rein in economic growth, many question the virtue of this
philosophy in light of the shaky performance of several economic sectors.
Clearly, signs of inflation have yet to reveal themselves since wages remain
under tight control and prices have yet to reflect the rising costs of raw
materials. Weak consumer demand and a soft economy should ensure that prices
don't rise in the near future.
Both the bond and the stock market delivered explosive rallies in the first
half. The possibility of a recession and the prospect of a less restrictive
monetary policy brought droves of investors back to bonds. Similarly, the stock
market reached new highs during the first half of the year. Helped by low
inflation, falling interest rates and strong corporate profits,
investors--especially equity mutual fund buyers--flooded back into the market.
To most investors, nothing immediate on the horizon appears to suggest a sharp
reversal in the markets. However, the Fed has proved itself uneasy with a
growing economy. Any significant signs of economic growth could move interest
rates higher once again, hurting both the stock and bond markets. Also,
speculation continues that the stock market may be due for a temporary setback
or correction. Current valuation levels leave little room for disappointment,
especially in earnings shortfalls.
1
<PAGE> 5
Index 500 Stock Portfolio
The investment objective of the Index 500 Stock Portfolio is to achieve
investment results that approximate the performance of the Standard & Poor's
500 Composite Stock Price Index. The portfolio is fully invested in equities.
As noted in the graph, on April 30, 1993, the portfolio was indexed to
approximate the performance of the Standard & Poor's 500 Composite Stock Price
Index. Prior to April 30, 1993, the portfolio was actively managed.
The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged
groups of 500 selected common stocks, most of which are listed on the New York
Stock Exchange. The index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
The chart below assumes an initial investment of $10,000 made on 6/30/85.
Returns shown include deductions for management and other fund expenses, and
reinvestment of all dividends. Returns exclude deductions for separate account
sales loads and account fees. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that
your shares, when redeemed, may be worth more or less than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
One Year Five Year Ten Year
<S> <C> <C> <C>
Index 500 Stock Portfolio 25.91% 11.40% 11.80%
S&P 500 Index 25.90% 12.01% 14.61%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
6/85 6/86 6/87 6/88 6/89
<S> <C> <C> <C> <C> <C>
Index 500 Stock Portfolio $10,000 $12,727 $15,670 $15,130 $16,571
S&P 500 Index $10,000 $13,730 $17,094 $15,880 $19,088
</TABLE>
<TABLE>
<CAPTION>
6/90 6/91 6/92 6/93 6/94 6/95
<S> <C> <C> <C> <C> <C> <C>
Index 500 Stock Portfolio $17,782 $19,471 $21,341 $23,990 $24,225 $30,502
S&P 500 Index $22,180 $23,799 $26,989 $30,659 $31,058 $39,101
</TABLE>
A solid vertical line is drawn at 4/30/93 to indicate that the portfolio was
indexed on 4/30/93 and actively managed prior to that date.
2
<PAGE> 6
Growth Stock Portfolio
Speculation that medium and large capitalization companies would turn in
mediocre results in the first half induced the Growth Stock Portfolio to keep
cash positions relatively high. Caught by surprise in the sharply rising stock
market, the portfolio moved to reduce cash. However, cash positions still had
a negative effect on returns.
Underweighting in technology and financial stocks also hurt the portfolio's
performance since these were among the few areas that meaningfully outperformed
the overall market. Moreover, within the various industry sectors, relatively
few stocks performed well. For example, 66 percent of the market's returns for
the first half of 1995 were derived from just 10 percent of the companies.
This concentration made it more difficult to exploit the market's rally.
Long term, the portfolio will continue to diversify across industry sectors,
with a specific emphasis on multi-national growth companies. At present, there
are intriguing opportunities among retailers and selected money center banks.
The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged
groups of 500 selected common stocks, most of which are listed on the New York
Stock Exchange. The index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
The chart below assumes an initial investment of $10,000 made on 5/3/94
(commencement of operations). Returns shown include deductions for management
and other fund expenses, and reinvestment of all dividends. Returns exclude
deductions for separate account sales loads and account fees. Past performance
is not predictive of future performance. Investment return and principal value
will fluctuate, so that your shares, when redeemed, may be worth more or less
than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
Since
One Year Inception
<S> <C> <C>
Growth Stock Portfolio 17.62% 13.89%
S&P 500 Index 25.90% 20.35%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
5/3/94 6/94 6/95
<S> <C> <C> <C>
Growth Stock Portfolio $10,000 $9,884 $11,626
S&P 500 Index $10,000 $9,845 $12,394
</TABLE>
3
<PAGE> 7
Growth and Income Stock Portfolio
The largest capitalization stocks led the market rally, with technology stocks
in particular providing substantial gains.
Suffering from the narrow focus of the market and the emphasis on near term
corporate earnings momentum, the Growth and Income Portfolio underperformed.
However, this narrow focus tends to be short lived.
In keeping with its management objectives, the fund continues to emphasize
attractive sectors such as capital goods and communications, which currently
appear to be undervalued. These stocks should benefit once the market broadens
out. The fund is fully invested and the portfolio will seek the best values
over a long cycle.
The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged
groups of 500 selected common stocks, most of which are listed on the New York
Stock Exchange. The index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
The chart below assumes an initial investment of $10,000 made on 5/3/94
(commencement of operations). Returns shown include deductions for management
and other fund expenses, and reinvestment of all dividends. Returns exclude
deductions for separate account sales loads and account fees. Past performance
is not predictive of future performance. Investment return and principal value
will fluctuate, so that your shares, when redeemed, may be worth more or less
than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
One Year Inception
<S> <C> <C>
Growth and Income Stock Portfolio 20.13% 14.97%
S&P 500 Index 25.90% 20.35%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
5/3/94 6/94 6/95
<S> <C> <C>
Growth and Income Stock Portfolio $10,000 $9,784 $11,754
S&P 500 Index $10,000 $9,845 $12,394
</TABLE>
4
<PAGE> 8
Aggressive Growth Stock Portfolio
The weaker U.S. dollar continued to hamstring the growth of many smaller
companies in the first half of 1995. Compared to larger corporations which tend
to do better in this environment, the primarily small cap stocks in the
portfolio had slower relative earnings growth during most of this period.
Toward the end of the period, some of the trends began to reverse; a
strengthening dollar and an upturn in small cap stocks. This bodes well for
second half performance.
The technology sector flourished as the best performing sector in the
portfolio. Growth in this sector has been spurred by the drive to increase
productivity in the workplace, growing consumer demand for PCs, and sales of
equipment overseas where markets are growing rapidly.
Portfolio strategy continues to concentrate on the rapidly growing technology
and health care sectors. However, exposure to the transportation and temporary
help sectors was cut back somewhat, along with selected health care issues.
Moreover, given the robust growth in technology, the portfolio may restructure
some technology positions.
Since the portfolio invests primarily in small capitalization issues, the
indices that best reflect the portfolio's performance are Wilshire Next 1750
Index and Wilshire Small Cap Index.
The Wilshire Next 1750 is an unmanaged, equally weighted index. Included in
this index are those stocks which are ranked 750 to 2500 by market
capitalization in the Wilshire 5000. The largest sectors represented in this
index are financial services, consumer services and basic industry. Its
average market capitalization is approximately $400 million.
The Wilshire Small Cap Index is a subset of the Wilshire Next 1750 and includes
250 stocks chosen based upon their size, sector and liquidity characteristics.
Each stock is equally weighted in this unmanaged index. The average market
capitalization is approximately $550 million as of June 30, 1995. The largest
sector weightings include financial services, consumer services and technology.
On May 3, 1994, the Northwestern Mutual Aggressive Growth Stock Fund,
Inc. (the "Fund") merged into the Northwestern Mutual Series Fund, Inc.
Aggressive Growth Stock Portfolio (the "Portfolio"). The Portfolio had no
assets prior to the merger. After the merger, the assets of the Portfolio were
those of the Fund. The investment objectives, policies, management and
expenses of the Portfolio are identical to those of the Fund. Accordingly, the
performance of the Fund prior to the merge is included with the performance of
the Portfolio in the graph and total return figures above.
The chart below assumes an initial investment of $10,000 made on 11/30/90
(commencement of the Funds's operations). Returns shown include deductions for
management and other fund expenses, and reinvestment of all dividends. Returns
exclude deductions for separate account sales loads and account fees. Past
performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be
worth more or less than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
Since
One Year Inception
<S> <C> <C>
Aggressive Growth Stock Portfolio 26.32% 21.55%
Wilshire Small Cap 15.10% 19.98%
Whilshire Next 1750 21.94% 21.04%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
11/90 6/91 6/92 6/93 6/94 6/95
<S> <C> <C> <C> <C> <C> <C>
Aggressive Growth Stock Portfolio $10,000 $12,593 $13,994 $17,133 $19,354 $24,448
Wilshire Small Cap $10,000 $13,189 $15,522 $19,336 $20,012 $23,034
Whilshire Next 1750 $10,000 $13,186 $15,086 $19,108 $19,670 $23,986
</TABLE>
5
<PAGE> 9
International Equity Stock Portfolio
Foreign markets experienced anemic growth in the first half of the year. Trade
frictions with Japan, the aftermath of the Mexican crisis and a softer dollar
kept much of the capital away from overseas markets. However, recent trends
point to a more optimistic investment environment abroad. Interest rates in
the U.S. and Japan are lower, while inflation rates continue to slide globally,
and the battered U.S. dollar appears to be stabilizing.
Among the various foreign markets, a troubled Japanese economy consistently
under-performed during the first half of 1995. This was largely due to its
continuing problems with deflation, falling economic activity, and a depressed
real estate market that haunted the banking industry. In no small part due to
this turbulent economic environment, the portfolio maintained its low exposure
to Japan. The portfolio will continue to focus attention on investment
opportunities in the European markets.
Strategically, little change has occurred in the portfolio's geographic and
industry exposure with current cash and equivalents weighting of less than 10
percent. Similarly, the fund continues to steer clear of currency hedging.
Instead, look to the portfolio to maintain a long-term horizon and to continue
to exploit favorable opportunities in world markets.
As depicted in the graph, the International Equity Portfolio is compared
against the Morgan Stanley Capital International EAFE ("Europe-Australia-Far
East") Index. The index is composed of approximately 1100 companies in 20
countries in Europe and the Pacific Basin. The objective of the index is to
reflect the movements of stock markets in these countries by representing an
unmanaged (indexed) portfolio within each country. The indices are constructed
so that companies chosen represent about 60% of market capitalization in each
market, industry composition of the market is reflected and a cross section of
large, medium, and small cap stocks is included taking into account liquidity
concerns. The index is calculated in U.S.$.
On May 3, 1994, the Northwestern Mutual International Equity Fund, Inc. (the
"Fund") merged into the Northwestern Mutual Series Fund, Inc. International
Equity Portfolio (the "Porfolio"). The Portfolio had no assets prior to the
merger. After the merger, the assets of the Portfolio were those of the Fund.
The investment objectives, policies, management and expenses of the Portfolio
are identical to those of the Fund. Accordingly, the performance of the Fund
prior to the merge is included with the performance of the Portfolio in the
graph and total return figures above.
The chart below assumes an initial investment of $10,000 made on 4/30/93
(commencement of the Funds's operations). Returns shown include deductions for
management and other fund expenses, and reinvestment of all dividends. Returns
exclude deductions for separate account sales loads and account fees. Past
performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be
worth more or less than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
Since
One Year Inception
<S> <C> <C>
International Equity Stock Portfolio 10.96% 14.80%
EAFE 2.00% 9.51%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
4/93 6/93 6/94 6/95
<S> <C> <C> <C> <C>
International Equity Stock Portfolio $10,000 $10,118 $12,155 $13,487
EAFE $10,000 $10,202 $11,936 $12,175
</TABLE>
6
<PAGE> 10
Select Bond Portfolio
An unexpected bond market rally, precipitated by a slowing economy and lack of
inflation pressure, caught investors by surprise. As a result, bearish
investors found themselves underowned and were effectively forced to buy bonds
as the market rallied. The drop in yields was dramatic. Two year Treasury
rates fell from 7.69 percent to 5.79 percent (190 basis points), while 30-year
Treasury rates fell from 7.88 percent to 6.62 percent (126 basis points).
There appears to be little evidence that interest rates will rise significantly
during the next few months.
The average maturity in the portfolio became slightly long early in the year,
and remained that way for most of the period. This was in response to
excessive bearishness by most investors and an economy likely to slow from last
year's fast pace. Corporate bonds were the best performing fixed-income asset
class, spurred on by limited new issuance and the improving credit quality of
many companies. The portfolio weightings at mid-year are 12 percent cash, 13
percent Treasuries, 23 percent mortgage-backed and 52 percent corporate.
Since the portfolio invests broadly in U.S. Government, mortgage and corporate
bonds, the graph depicts an appropriate comparison to the Merrill Lynch
Domestic Master Index. The index is an unmanaged market value weighted index
comprised of U.S. Government, mortgage and investment-grade corporate bonds.
The index measures the income provided by, and the price changes of, the
underlying securities.
The chart below assumes an initial investment of $10,000 made on 6/30/85.
Returns shown include deductions for management and other fund expenses, and
reinvestment of all dividends. Returns exclude deductions for separate account
sales loads and account fees. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that
your shares, when redeemed, may be worth more or less than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
One Year Five Year Ten Year
<S> <C> <C> <C>
Select Bond Portfolio 12.78% 10.11% 10.32%
Merrill Lynch Domestic Master Index 12.59% 9.56% 10.01%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
6/85 6/86 6/87 6/88 6/89
<S> <C> <C> <C> <C> <C>
Select Bond Portfolio $10,000 $12,404 $12,898 $13,778 $15,502
Merrill Lynch Domestic Master Index $10,000 $11,995 $12,640 $13,630 $15,325
</TABLE>
<TABLE>
<CAPTION>
6/90 6/91 6/92 6/93 6/94 6/95
<S> <C> <C> <C> <C> <C> <C>
Select Bond Portfolio $16,492 $18,277 $21,035 $23,724 $23,669 $26,692
Merrill Lynch Domestic Master Index $16,447 $18,238 $20,818 $23,301 $23,060 $25,962
</TABLE>
7
<PAGE> 11
High Yield Bond Portfolio
The High Yield Bond Portfolio benefited from generally declining interest
rates, posting strong gains in the first half. However, the performance of the
high yield market lagged the more interest rate sensitive Treasury and
investment grade bond markets during the recent bond rally.
Concern regarding an economic slowdown caused leveraged and cyclical issues to
trail the market in response to potentially lower corporate earnings prospects.
New issue supply was heavy in the second quarter causing yields on new issues to
increase. The fund's cash allocation was maintained in a range of three to
four percent. The portfolio is broadly diversified and actively traded based
on relative value relationships.
The Salomon Brothers High Yield Market Index includes cash-pay and
deferred-interest corporate bonds with remaining maturities of at least one
year. All bonds in the index are publicly placed, have a fixed coupon and are
non-convertible. Bonds issued under Rule 144A are added after the issuer has
registered the security with the Securities and Exchange Commission. The index
is an unmanaged market value weighted index and measures the income provided
by, and the price changes of, the underlying securities.
The chart below assumes an initial investment of $10,000 made on 5/3/94
(commencement of operations). Returns shown include deductions for management
and other fund expenses, and reinvestment of all dividends. Returns exclude
deductions for separate account sales loads and account fees. Past performance
is not predictive of future performance. Investment return and principal value
will fluctuate, so that your shares, when redeemed, may be worth more or less
than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
Since
One Year Inception
<S> <C> <C>
High Yield Bond Portfolio 13.66% 12.73%
Salomon Brothers High Yield Market Index 13.90% 12.33%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
5/3/94 6/94 6/95
<S> <C> <C> <C>
High Yield Bond Portfolio $10,000 $10,110 $11,490
Salomon Brothers High Yield Market Index $10,000 $10,046 $11,442
</TABLE>
MONEY MARKET PORTFOLIO
Consistent with interest rates in general, money market rates fell during the
first half of the year. Fueled by a slowing economy and the expectations of a
Federal Reserve rate decrease, rates remained low. Through the Fed took no
action during most of the period, it did lower rates on Federal Funds by 25
basis points on July 6.
A slowing economy has lured the market into expecting more rate cuts. Already,
another 50 basis point rate cut is priced into the Treasury market.
8
<PAGE> 12
Balanced Portfolio
Throughout the first half of the year, portfolio strategy became more
aggressive, with cash dropping and exposure to both stocks and bonds
increasing. Currently, the asset mix of the Balanced Portfolio stands at 53
percent stocks, 36 percent bonds, and 11 percent cash.
The rationale behind this more fully invested position lies in the low
inflation rate, a slowing economy, and a change in the Federal Reserve policy
away from the restrictive position of last year. At least in the near term,
prospects look good for both the stock and bond markets.
The bond component of the portfolio adopted a slightly more aggressive position
during the first half with greater exposure to mortgage securities. In
addition, the portfolio continued to emphasize stocks, which were the best
performing asset class during the period.
In the graph, the portfolio is compared against three indices representing the
three major components of the portfolio: equities, fixed income and cash
equivalent investments.
The Merrill Lynch Domestic Master Index is an unmanaged market value weighted
index comprised of U.S. Government, mortgage and investment-grade corporate
bonds. The index measures the income provided by, and the price changes of,
the underlying securities.
The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged
groups of 500 selected common stocks, most of which are listed on the New York
Stock Exchange. The index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
The chart below assumes an initial investment of $10,000 made on 6/30/85.
Returns shown include deductions for management and other fund expenses, and
reinvestment of all dividends. Returns exclude deductions for separate account
sales loads and account fees. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that
your shares, when redeemed, may be worth more or less than their original cost.
Total Returns
For Periods Ended June 30, 1995
<TABLE>
<CAPTION>
One Year Five Year Ten Year
<S> <C> <C> <C>
Balanced Portfolio 18.17% 10.40% 11.18%
S&P 500 Index 25.90% 12.01% 14.61%
Merrill Lynch Domestic Master Index 12.59% 9.56% 10.01%
Merrill Lynch 91-Day Treasury Bill 5.51% 4.99% 6.19%
</TABLE>
Plot points on graph:
<TABLE>
<CAPTION>
6/85 6/86 6/87 6/88 6/89
<S> <C> <C> <C> <C> <C>
Balanced Portfolio $10,000 $12,725 $14,786 $15,042 $16,440
S&P 500 Index $10,000 $13,730 $17,094 $15,880 $19,088
Merrill Lynch Domestic Master Index $10,000 $11,995 $12,640 $13,630 $15,325
Merrill Lynch 91-Day Treasury Bill $10,000 $10,761 $11,424 $12,147 $13,175
</TABLE>
<TABLE>
<CAPTION>
6/90 6/91 6/92 6/93 6/94 6/95
<S> <C> <C> <C> <C> <C> <C>
Balanced Portfolio $17,592 $19,373 $21,563 $24,211 $24,417 $28,854
S&P 500 Index $22,180 $23,799 $26,989 $30,659 $31,058 $39,101
Merrill Lynch Domestic Master Index $16,447 $18,238 $20,818 $23,301 $23,060 $25,962
Merrill Lynch 91-Day Treasury Bill $14,294 $15,375 $16,171 $16,717 $17,280 $18,233
</TABLE>
9
<PAGE> 13
ACCOUNT B
The annual report of Northwestern Mutual Series Fund Inc., is included because
all payments to Account B are invested in one or more Portfolios of this Fund.
The Series Fund is a mutual fund currently offering shares only to The
Northwestern Mutual Life Insurance Company and its separate investment accounts.
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
James D. Ericson, President and
C.E.O.
NML VARIABLE ANNUITY ACCOUNT B
ACCUMULATION UNIT VALUES
<TABLE>
<CAPTION>
CONTRACTS ISSUED
CONTRACTS ISSUED ON OR AFTER DECEMBER 17, 1981
BEFORE DECEMBER 17, 1981 AND BEFORE MARCH 31, 1995
------------------------------- -------------------------------
DIVISION 12/31/94 6/30/95 % CHANGE 12/31/94 6/30/95 % CHANGE
--------------------------------------------- -------- ------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Index 500 Stock.............................. $1.530 $1.828 19.51% $1.499 $1.787 19.21%
Growth Stock................................. N/A N/A N/A 1.006 1.145 13.78%
Growth and Income Stock...................... N/A N/A N/A 0.994 1.157 16.42%
Aggressive Growth Stock...................... 2.042 2.353 15.21% 2.001 2.300 14.92%
International Equity......................... 1.230 1.327 7.91% 1.220 1.313 7.65%
Select Bond.................................. 5.569 6.204 11.41% 5.217 5.798 11.13%
High Yield Bond.............................. N/A N/A N/A 1.022 1.132 10.84%
Money Market................................. 2.206 2.262 2.52% 2.067 2.114 2.27%
Balanced..................................... 3.685 4.206 14.14% 3.453 3.932 13.86%
</TABLE>
<TABLE>
<CAPTION>
CONTRACTS ISSUED CONTRACTS ISSUED
ON OR AFTER MARCH 31, 1995 ON OR AFTER MARCH 31, 1995
FRONT LOAD VERSION BACK LOAD VERSION
------------------------------- -------------------------------
DIVISION 3/31/95 6/30/95 % CHANGE 3/31/95 6/30/95 % CHANGE
--------------------------------------------- -------- ------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Index 500 Stock.............................. $1.000 $1.094 9.39% $1.637 $1.787 9.16%
Growth Stock................................. 1.000 1.060 5.99% 1.082 1.145 5.77%
Growth and Income Stock...................... 1.000 1.071 7.12% 1.083 1.157 6.90%
Aggressive Growth Stock...................... 1.000 1.086 8.57% 2.123 2.300 8.34%
International Equity......................... 1.000 1.080 8.03% 1.218 1.313 7.80%
Select Bond.................................. 1.000 1.062 6.19% 5.471 5.798 5.97%
High Yield Bond.............................. 1.000 1.064 6.38% 1.067 1.132 6.16%
Money Market................................. 1.000 1.013 1.35% 2.090 2.114 1.13%
Balanced..................................... 1.000 1.073 7.27% 3.673 3.932 7.04%
</TABLE>
N/A -- Not Available. These divisions are currently not available to
contractholders on contracts issued before December 17, 1981.
Note: Accumulation Unit Values are rounded to the nearest one-thousandth.
AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY
THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE PORTFOLIO WILL BE
ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
Note: "Standard and Poor's 500" and "S&P 500(R)" are trademarks of McGraw-Hill,
Inc. and have been licensed for use by The Northwestern Mutual Life
Insurance Company. The Series Funds and its Portfolios are not sponsored,
endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's
makes no representation regarding the advisability of investing in them.
10
<PAGE> 14
NML VARIABLE ANNUITY ACCOUNT B
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(IN THOUSANDS)
<TABLE>
<S> <C> <C>
ASSETS
Investments at Market Value:
Northwestern Mutual Series Fund, Inc.
Index 500 Stock
173,845 shares (cost $205,188)..................................... $ 261,636
Growth Stock
22,026 shares (cost $22,860)....................................... 24,998
Growth and Income Stock
49,881 shares (cost $51,450)....................................... 57,063
Aggressive Growth Stock
145,804 shares (cost $253,708)..................................... 335,057
International Equity
193,027 shares (cost $231,301)..................................... 247,268
Select Bond
116,565 shares (cost $133,975)..................................... 134,398
High Yield Bond
13,083 shares (cost $13,355)....................................... 13,645
Money Market
77,730 shares (cost $77,730)....................................... 77,730
Balanced
1,001,020 shares (cost $1,312,752)................................. 1,455,483 $ 2,607,278
-----------
Due from Sale of Fund Shares............................................................ 4,514
Due from Northwestern Mutual Life Insurance Company..................................... 214
-----------
Total Assets.................................................................... $ 2,612,006
==========
LIABILITIES
Due to Participants..................................................................... $ 1,401
Due to Northwestern Mutual Life Insurance Company....................................... 4,514
Due on Purchase of Fund Shares.......................................................... 214
-----------
Total Liabilities............................................................... $ 6,129
-----------
EQUITY (Note 7)
Contracts Issued Prior to December 17, 1981............................................. $ 80,061
Contracts Issued On or After December 17, 1981 and Before March 31, 1995................ 2,492,331
Contracts Issued On or After March 31, 1995:
Front Load Version................................................................... 8,642
Back Load Version.................................................................... 24,843
-----------
Total Equity.................................................................... 2,605,877
-----------
Total Liabilities and Equity.................................................... $ 2,612,006
==========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared From Unaudited Figures)
11
<PAGE> 15
NML VARIABLE ANNUITY ACCOUNT B
STATEMENT OF OPERATIONS AND CHANGES IN EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
INDEX 500 GROWTH STOCK
COMBINED STOCK DIVISION DIVISION #
--------------------------- --------------------------- ---------------------------
EIGHT MONTHS
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
------------ ------------ ------------ ------------ ------------ ------------
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend Income................ $ 59,210 $ 219,223 $ 2,545 $ 9,672 $ 188 $ 165
Annuity Rate and Expense
Guarantees................... 14,638 26,109 1,362 2,324 114 52
------------ ------------ ------------ ------------ ------------ ------------
Net Investment Income (Loss)... 44,572 193,114 1,183 7,348 74 113
------------ ------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized Gain on Investments... 1,864 17,722 221 534 1 --
Unrealized Appreciation
(Depreciation) of Investments
During the Year.............. 256,626 (226,913) 39,099 (7,574) 2,278 (138)
------------ ------------ ------------ ------------ ------------ ------------
Net Gain (Loss) on
Investments.................. 258,490 (209,191) 39,320 (7,040) 2,279 (138)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Equity
Derived from Investment
Activity..................... 303,062 (16,077) 40,503 308 2,353 (25)
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS
Contract Owners' Net
Payments..................... 167,849 389,478 18,095 37,543 5,641 4,757
Annuity Payments............... (3,624) (4,241) (236) (476) (8) (1)
Surrenders and Other (net)..... (95,600) (121,978) (7,229) (8,669) (191) (85)
Transfers from Other
Divisions.................... 115,860 254,710 12,742 16,836 5,621 7,898
Transfers to Other Divisions... (115,860) (254,710) (7,576) (26,080) (804) (187)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Equity
Derived from Equity
Transactions................... 68,612 263,259 15,796 19,154 10,259 12,382
------------ ------------ ------------ ------------ ------------ ------------
Net Increase (Decrease)
in Equity...................... 371,674 247,182 56,299 19,462 12,612 12,357
Equity
Beginning of Year.............. 2,234,203 1,987,021 205,214 185,752 12,357 0
------------ ------------ ------------ ------------ ------------ ------------
End of Year.................... $2,605,877 $2,234,203 $261,513 $205,214 $ 24,969 $ 12,357
=========== =========== =========== =========== =========== ==========
</TABLE>
# The initial investments in the Growth Stock and Growth and Income Stock
Divisions were made on May 3, 1994.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
12
<PAGE> 16
NML VARIABLE ANNUITY ACCOUNT B
STATEMENT OF OPERATIONS AND CHANGES IN EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
GROWTH & INCOME AGGRESSIVE GROWTH INTERNATIONAL EQUITY
STOCK DIVISION # STOCK DIVISION DIVISION SELECT BOND DIVISION
----------------------------- ----------------------------- ----------------------------- -----------------------------
EIGHT MONTHS
PERIOD ENDED ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
1995 1994 1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 418 $ 513 $ 1,785 $ 1,607 $ 1,696 $ 6,775 $ 3,550 $ 16,145
269 132 1,763 2,503 1,449 2,224 754 1,513
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
149 381 22 (896) 247 4,551 2,796 14,632
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
10 -- 662 297 1,981 96 216 1,449
6,434 (820) 40,969 10,133 15,366 (9,711) 10,243 (21,331)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
6,444 (820) 41,631 10,430 17,347 (9,615) 10,459 (19,882)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
6,593 (439) 41,653 9,534 17,594 (5,064) 13,255 (5,250)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
10,703 12,083 30,652 61,047 20,970 76,394 8,563 25,069
(16) (5) (90) (114) (83) (120) (152) (382)
(561) (579) (7,917) (6,864) (8,103) (5,559) (5,644) (9,838)
10,798 21,072 29,037 51,753 12,568 86,072 5,652 7,671
(2,009) (534) (9,587) (15,127) (27,655) (14,282) (5,508) (30,044)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
18,902 32,037 42,095 90,695 (2,303) 142,505 2,911 (7,524)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
25,495 31,598 83,748 100,229 15,291 137,441 16,166 (12,774)
31,598 0 251,206 150,977 231,900 94,459 118,116 130,890
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 57,093 $ 31,598 $334,954 $251,206 $247,191 $231,900 $134,282 $118,116
=========== ========== =========== =========== =========== =========== =========== ===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
13
<PAGE> 17
NML VARIABLE ANNUITY ACCOUNT B
STATEMENT OF OPERATIONS AND CHANGES IN EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
HIGH YIELD BOND
DIVISION# MONEY MARKET DIVISION BALANCED DIVISION
----------------------- ----------------------- -------------------------
PERIOD EIGHT MONTHS PERIOD PERIOD
ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
-------- ------------ -------- ------------ ---------- ------------
1995 1994 1995 1994 1995 1994
-------- ------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend Income........................ $ 494 $ 408 $ 2,075 2,486 $ 46,459 $ 181,452
Annuity Rate and Expense Guarantees.... 63 35 440 750 8,424 16,576
-------- ------------ -------- ------------ ---------- ------------
Net Investment Income.................. 431 373 1,635 1,736 38,035 164,876
-------- ------------ -------- ------------ ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized Gain (Loss) on Investments.... 2 14 -- -- (1,229) 15,332
Unrealized Appreciation (Depreciation)
of Investments During the Year....... 624 (333) -- -- 141,613 (197,139)
-------- ------------ -------- ------------ ---------- ------------
Net Gain (Loss) on Investments......... 626 (319) 0 0 140,384 (181,807)
-------- ------------ -------- ------------ ---------- ------------
Increase (Decrease) in Equity Derived
from Investment Activity............. 1,057 54 1,635 1,736 178,419 (16,931)
-------- ------------ -------- ------------ ---------- ------------
EQUITY TRANSACTIONS
Contract Owners' Net Payments.......... 3,158 3,137 15,914 35,360 54,152 134,088
Annuity Payments....................... (6) (2) (29) (54) (3,004) (3,087)
Surrenders and Other (net)............. (162) (245) (9,884) (11,859) (55,909) (78,280)
Transfers from Other Divisions......... 3,447 5,400 23,199 37,145 12,796 20,863
Transfers to Other Divisions........... (1,327) (882) (21,822) (46,086) (39,572) (121,488)
-------- ------------ -------- ------------ ---------- ------------
Increase (Decrease) in Equity
Derived from Equity Transactions....... 5,110 7,408 7,378 14,506 (31,537) (47,904)
-------- ------------ -------- ------------ ---------- ------------
Net Increase (Decrease) in Equity........ 6,167 7,462 9,013 16,242 146,882 (64,835)
Equity
Beginning of Year...................... 7,462 0 68,690 52,448 1,307,660 1,372,495
-------- ------------ -------- ------------ ---------- ------------
End of Year............................ $ 13,629 $7,462 $ 77,703 $ 68,690 $1,454,542 $1,307,660
======= =========== ======== =========== ========= ===========
</TABLE>
# The initial investment in the High Yield Bond Division was made on May 3,
1994.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
14
<PAGE> 18
NML VARIABLE ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
Note 1 -- NML Variable Annuity Account B (the "Account") is registered as a unit
investment trust under the Investment Company Act of 1940 and is a segregated
asset account of The Northwestern Mutual Life Insurance Company ("Northwestern
Mutual Life") used to fund variable annuity contracts for tax-deferred
annuities, individual retirement annuities and non-qualified plans. Principal
accounting policies are summarized below.
Note 2 -- All assets of each Division of the Account are invested in shares of
the corresponding Portfolio of Northwestern Mutual Series Fund, Inc. (the
"Fund"). The shares are valued at the Fund's offering and redemption price per
share.
The Fund is an open-end investment company registered under the Investment
Company Act of 1940.
Note 3 -- Annuity reserves are based on published annuity tables with age
adjustment and benefit payments which reflect actual investment experience. For
variable payment plans issued prior to January 1, 1974, annuity reserves are
based on the 1955 American Annuity Table with assumed interest rates of 3%,
3 1/2% or 5%. For variable payment plans issued on or after January 1, 1974 and
before January 1, 1985, annuity reserves are based on the 1971 Individual
Annuity Table with assumed interest rates of 3 1/2% or 5%. For variable payment
plans issued on or after January 1, 1985, annuity reserves are based on the 1983
Table a with assumed interest rates of 3 1/2% or 5%.
Note 4 -- Dividend income from the Fund is recorded on the record date of the
dividends. Transactions in Fund shares are accounted for on the trade date. The
basis for determining cost on sale of Fund shares is identified cost. Purchases
and sales of Fund shares for the period ended June 30, 1995 by each Division are
shown below:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Index 500 Stock
Division.............. $ 19,502,770 $ 2,470,889
Growth Stock Division... 10,360,006 8,658
Growth & Income Stock
Division.............. 19,188,309 132,860
Aggressive Growth
Division.............. 43,574,848 1,497,660
International Equity
Division.............. 10,753,958 12,807,165
Select Bond Division.... 9,245,877 3,688,199
High Yield Bond
Division.............. 5,966,738 419,040
Money Market Division... 20,745,182 11,808,145
Balanced Division....... 59,419,477 53,152,385
</TABLE>
Note 5 -- A deduction for annuity rate and expense guarantees is determined
daily and paid to Northwestern Mutual Life as compensation for assuming the risk
that annuity payments will continue for longer periods than anticipated because
the annuitants as a group live longer than expected, and the risk that the
charges made by Northwestern Mutual Life may be insufficient to cover the actual
costs incurred in connection with the contracts.
For contracts issued on or after March 31, 1995, for the Front Load Version and
the Back Load Version, the deduction for annuity rate and expense guarantees is
determined daily at annual rates of 4/10 of 1% and 1 1/4%, respectively, of the
net assets of each Division attributable to these contracts and is paid to
Northwestern Mutual Life. For these contracts, the rates may be increased or
decreased by the Board of Trustees of Northwestern Mutual Life not to exceed
3/4 of 1% and 1 1/2%, respectively.
Generally, for contracts issued on or after December 17, 1981, and before March
31, 1995, the deduction is at an annual rate of 1 1/4% of the net assets of each
Division attributable to these contracts. For these contracts, the rate may be
increased or decreased by the Board of Trustees of Northwestern Mutual Life not
to exceed a 1 1/2% annual rate.
Generally, for contracts issued prior to December 17, 1981, the deduction is at
an annual rate of 3/4 of 1% of the net assets of each Division attributable to
these contracts. For these contracts, the rate may be increased or decreased by
the Board of Trustees of Northwestern Mutual Life not to exceed a 1% annual
rate.
Note 6 -- Northwestern Mutual Life is taxed as a "life insurance company" under
the Internal Revenue Code and the operations of the Account form a part of and
are taxed with those of Northwestern Mutual Life. Currently, no charges for
taxes have been made by Northwestern Mutual Life to the Account. Accordingly, no
provision for any such liability has been made.
15
<PAGE> 19
NML VARIABLE ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1995
(IN THOUSANDS)
Note 7 -- Equity Values by Division are shown below:
<TABLE>
<CAPTION>
CONTRACTS ISSUED:
CONTRACTS ISSUED: ON OR AFTER DECEMBER 17, 1981 AND
BEFORE DECEMBER 17, 1981 BEFORE MARCH 31, 1995
-------------------------------------- -----------------------------------------
ACCUMULATION UNITS ACCUMULATION UNITS
DIVISION UNIT VALUE OUTSTANDING EQUITY UNIT VALUE OUTSTANDING EQUITY
---------------------------------------- ------------ ----------- ------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Index 500 Stock......................... $ 1.828241 13,695 $25,038 $ 1.786947 127,397 $ 227,652
Growth Stock............................ N/A N/A N/A 1.144767 20,284 23,220
Growth & Income Stock................... N/A N/A N/A 1.157353 46,096 53,350
Aggressive Growth Stock................. 2.353161 1,655 3,894 2.999410 140,541 323,238
International Equity.................... 1.327032 2,481 3,292 1.312743 182,136 239,099
Select Bond............................. 6.204162 1,443 8,950 5.798055 20,881 121,068
High Yield Bond......................... N/A N/A N/A 1.132473 10,927 12,375
Money Market............................ 2.261796 1,277 2,888 2.114122 33,425 70,666
Balanced................................ 4.206261 7,795 32,789 3.932070 352,995 1,388,003
------- ----------
Equity................................ 76,851 33,660
Annuity Reserves...................... 3,210 2,458,671
------- ----------
Total Equity.......................... $80,061 $2,492,331
======= =========
</TABLE>
<TABLE>
<CAPTION>
CONTRACTS ISSUED: CONTRACTS ISSUED:
ON OR AFTER MARCH 31, 1995 ON OR AFTER MARCH 31, 1995
FRONT LOAD VERSION BACK LOAD VERSION
-------------------------------------- -----------------------------------------
ACCUMULATION UNITS ACCUMULATION UNITS
DIVISION UNIT VALUE OUTSTANDING EQUITY UNIT VALUE OUTSTANDING EQUITY
---------------------------------------- ------------ ----------- ------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Index 500 Stock......................... $ 1.093889 881 $ 963 $ 1.751242 1,817 $ 3,247
Growth Stock............................ 1.059921 455 482 1.144767 848 970
Growth and Income Stock................. 1.071240 1,038 1,112 1.157353 1,778 2,058
Aggressive Growth Stock................. 1.085737 1,163 1,262 2.291539 1,948 4,480
International Equity.................... 1.080273 649 701 1.312743 1,722 2,261
Select Bond............................. 1.061944 374 397 5.742099 262 1,518
High Yield Bond......................... 1.063815 348 370 1.132473 612 693
Money Market............................ 1.013464 1,173 1,188 2.109535 1,213 2,564
Balanced................................ 1.072654 1,996 2,141 3.912731 1,774 6,976
------- ----------
Equity................................ 8,616 24,767
Annuity Reserves...................... 26 76
------- ----------
Total Equity.......................... $ 8,642 $ 24,843
======= =========
</TABLE>
N/A -- Not Available. These divisions are currently not available to
contractholders on contracts issued before December 17, 1981.
16
<PAGE> 20
---------------
THIS PAGE INTENTIONALLY
LEFT BLANK
---------------
17
<PAGE> 21
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $304,022).................. $ 378,992
Other Investments
(cost $21,015)................... 21,013
---------
400,005
Cash................................ 182
Dividends and Interest Receivable... 726
---------
Total Assets................... 400,913
---------
LIABILITIES
Due on Redemption of Fund Shares.... 514
Due to Investment Advisor........... 65
Due on Future Variation Margin...... 49
Accrued Expenses.................... 18
---------
Total Liabilities.............. 646
---------
NET ASSETS............................ $ 400,267
=========
REPRESENTED BY:
Aggregate Paid in Capital
(500,000 shares authorized,
$.01 par value; 265,893
shares outstanding).............. $ 320,275
Undistributed Net Investment
Income........................... 788
Undistributed Accumulated Net
Realized Gain on Investments..... 3,440
Net Unrealized Appreciation of:
Investment Securities............ 74,968
Index Futures Contracts.......... 796
---------
Net Assets for 265,893 Shares
Outstanding...................... $ 400,267
=========
Net Asset Value, Offering and
Redemption Price per Share....... $1.51
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $34)..................... $ 4,506
Interest.......................... 485
Other Income...................... 1
--------
Total Income.................... 4,992
--------
Expenses
Management Fees................... 353
Filing Fees....................... 13
Audit............................. 9
--------
Total Expenses.................. 375
--------
Net Investment Income................ 4,617
--------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments:
Investment Securities............. 1,516
Index Futures Contracts........... 1,566
--------
Net Realized Gain on
Investments for the Period... 3,082
--------
Net Unrealized Appreciation of:
Investment Securities............. 56,228
Index Futures Contracts........... 839
--------
Net Unrealized Appreciation of
Investments for the Period... 57,067
--------
Net Gain on Investments.............. 60,149
--------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............ $ 64,766
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
18
<PAGE> 22
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 4,617 $ 6,330
Net Realized Gain on Investments........................................ 3,082 2,961
Net Unrealized Appreciation of Investments for the Period............... 57,067 389
---------- ------------
Net Increase in Net Assets Resulting from Operations.................. 64,766 9,680
---------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (3,894) (6,269)
Net Realized Gain on Investments........................................ -- (2,586)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (3,894) (8,855)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 19,676 and 19,955 Shares.......................... 27,551 25,556
Proceeds from Sale of 220,158 Shares Issued in Acquisition of
Northwestern Mutual Index 500 Stock Fund, Inc. ........................ -- 277,484
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(2,593 and 6,966 shares, respectively)................................ 3,894 8,830
Payments for 6,060 and 17,180 Shares Redeemed........................... (8,173) (22,051)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(16,209 and 229,899 shares, respectively).......................... 23,272 289,819
---------- ------------
Total Increase in Net Assets............................................... 84,144 290,644
NET ASSETS
Beginning of Period........................................................ 316,123 25,479
---------- ------------
End of Period (includes undistributed net investment income of
$788 and $65, respectively)............................................. $400,267 $316,123
========= ===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
19
<PAGE> 23
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS FOR THE YEARS
ENDED JUNE ENDED DECEMBER 31
30, 1995 --------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 1.27 $ 1.29 $ 1.33 $ 1.31 $ 1.04 $ 1.12
Income from Investment Operations:
Net Investment Income............. 0.0181 0.0260 0.0352 0.0340 0.0347 0.0395
Net Realized and Unrealized Gain
(Loss) on Investments........... 0.2356 (0.0052) 0.0947 0.0316 0.2685 (0.0812)
----------- -------- --------- --------- --------- ---------
Total from Investment
Operations................... 0.2537 0.0208 0.1299 0.0656 0.3032 (0.0417)
----------- -------- --------- --------- --------- ---------
Less Distributions:
Dividends from Net Investment
Income.......................... (0.0148) (0.0259) (0.0325) (0.0325) (0.0332) (0.0383)
Distributions from Realized Gains
on Investments.................. -- (0.0106) (0.1374) (0.0131) -- --
----------- -------- --------- --------- --------- ---------
Total Distributions............. (0.0148) (0.0365) (0.1699) (0.0456) (0.0332) (0.0383)
----------- -------- --------- --------- --------- ---------
Net Asset Value, End of Period......... $ 1.51 $ 1.27 $ 1.29 $ 1.33 $ 1.31 $ 1.04
========== ========= ========= ========= ========= =========
Total Return+.......................... 19.96% ++ 1.21% 9.90% 4.54% 29.78% -4.23%
========== ========= ========= ========= ========= =========
Net Assets, End of Period
(in thousands)....................... $400,267 $316,123 $25,479 $17,288 $14,115 $9,516
========== ========= ========= ========= ========= =========
Ratio of Expenses to Average
Net Assets........................... 0.20% * 0.24% 0.30% 0.30% 0.30% 0.30%
========== ========= ========= ========= ========= =========
Ratio of Net Investment Income to
Average Net Assets................... 2.23% * 3.10% 2.55% 2.61% 2.88% 3.70%
========== ========= ========= ========= ========= =========
Portfolio Turnover Rate................ 2.00% 5.59% 62.69% 39.93% 40.16% 80.07%
========== ========= ========= ========= ========= =========
</TABLE>
* Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
20
<PAGE> 24
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH STOCK PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $50,198).................... $ 56,434
Money Market Investments
(cost $5,079)..................... 5,079
--------
61,513
Cash................................. 79
Dividends and Interest Receivable.... 82
Due from Sale of Fund Shares......... 30
Due from Sale of Securities.......... 19
--------
Total Assets.................... 61,723
--------
LIABILITIES
Due on Purchase of Securities........ 76
Due to Investment Advisor............ 29
Accrued Expenses..................... 17
Due on Redemption of Fund Shares..... 3
--------
Total Liabilities............... 125
--------
NET ASSETS............................. $ 61,598
========
REPRESENTED BY:
Aggregate Paid in Capital
(400,000 shares authorized,
$.01 par value; 54,282 shares
outstanding)...................... $ 55,352
Undistributed Net Investment
Income............................ 78
Undistributed Accumulated Net
Realized Loss on Investments...... (68)
Net Unrealized Appreciation of
Investments....................... 6,236
--------
Net Assets for 54,282 Shares
Outstanding....................... $ 61,598
========
Net Asset Value, Offering and
Redemption Price per Share........ $1.13
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends.......................... $ 536
Interest........................... 167
-------
Total Income..................... 703
-------
Expenses
Management Fees.................... 152
Audit.............................. 9
Filing Fees........................ 5
-------
Total Expenses................... 166
-------
Net Investment Income................. 537
-------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments...... 50
Net Unrealized Appreciation of
Investments for the Period......... 6,327
-------
Net Gain on Investments............... 6,377
-------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............. $ 6,914
======
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
21
<PAGE> 25
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE MAY 3,
SIX MONTHS 1994*
ENDED THROUGH
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 537 $ 518
Net Realized Gain (Loss) on Investments................................. 50 (20)
Net Unrealized Appreciation (Depreciation) of Investments for the
Period................................................................. 6,327 (92)
---------- ------------
Net Increase in Net Assets Resulting from Operations.................. 6,914 406
---------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (466) (511)
Net Realized Gain on Investments........................................ -- (98)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (466) (609)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 12,381 and 41,690 Shares.......................... 13,264 41,858
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(412 and 547 shares, respectively).................................... 466 547
Payments for 419 and 329 Shares Redeemed................................ (448) (334)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(12,374 and 41,908 shares, respectively)........................... 13,282 42,071
---------- ------------
Total Increase in Net Assets............................................... 19,730 41,868
NET ASSETS
Beginning of Period........................................................ 41,868 0
---------- ------------
End of Period (includes undistributed net investment income of
$78 and $7, respectively)............................................... $ 61,598 $ 41,868
========= ===========
</TABLE>
* Commencement of Operations.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
22
<PAGE> 26
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS MAY 3,
ENDED 1994*
JUNE 30, THROUGH
1995 DECEMBER 31,
(UNAUDITED) 1994
------------ ------------
<S> <C> <C>
Net Asset Value, Beginning of Period....................................... $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income................................................. 0.0112 0.0133
Net Realized and Unrealized Gains on Investments...................... 0.1328 0.0011
------------ ------------
Total from Investment Operations.................................... 0.1440 0.0144
------------ ------------
Less Distributions:
Dividends from Net Investment Income.................................. (0.0087) (0.0131)
Distributions from Realized Gains on Investments...................... -- (0.0024)
------------ ------------
Total Distributions................................................. (0.0087) (0.0155)
------------ ------------
Net Asset Value, End of Period............................................. $ 1.13 $ 1.00
=========== ===========
Total Return+.............................................................. 14.49%++ 1.55%++
=========== ===========
Net Assets, End of Period (in thousands)................................... $61,598 $41,868
=========== ===========
Ratio of Expenses to Average Net Assets.................................... 0.55%** 0.71%**
=========== ===========
Ratio of Net Investment Income to Average Net Assets....................... 1.79%** 2.30%**
=========== ===========
Portfolio Turnover Rate.................................................... 17.10% 16.51%
=========== ===========
</TABLE>
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
23
<PAGE> 27
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH AND INCOME STOCK PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $90,295).................... $ 98,422
Money Market Investments (cost
$1,795)........................... 1,795
--------
100,217
Due From Sale of Securities.......... 419
Dividends and Interest Receivable.... 127
Due from Sale of Fund Shares......... 92
--------
Total Assets.................... 100,855
--------
LIABILITIES
Due on Purchase of Securities........ 338
Due to Investment Advisor............ 54
Due on Redemption of Fund Shares..... 28
Accrued Expenses..................... 15
--------
Total Liabilities............... 435
--------
NET ASSETS............................. $100,420
=========
REPRESENTED BY:
Aggregate Paid in Capital (400,000
shares authorized, $.01 par value;
87,810 shares outstanding)........ $ 89,722
Undistributed Net Investment
Income............................ 89
Undistributed Accumulated Net
Realized Gain on Investments...... 2,482
Net Unrealized Appreciation of
Investments....................... 8,127
--------
Net Assets for 87,810 Shares
Outstanding....................... $100,420
=========
Net Asset Value, Offering and
Redemption Price per Share........ $1.14
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $8)....................... $ 919
Interest........................... 95
-------
Total Income..................... 1,014
-------
Expenses
Management Fees.................... 269
Filing Fees........................ 11
Audit.............................. 8
-------
Total Expenses................... 288
-------
Net Investment Income................. 726
-------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments...... 2,482
Net Unrealized Appreciation of
Investments for the Period......... 9,644
-------
Net Gain on Investments............... 12,126
-------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $12,852
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
24
<PAGE> 28
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH AND INCOME STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE MAY 3,
SIX MONTHS 1994*
ENDED THROUGH
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 726 $ 578
Net Realized Gain on Investments........................................ 2,482 632
Net Unrealized Appreciation (Depreciation) of Investments for the
Period................................................................. 9,644 (1,517)
---------- ------------
Net Increase (Decrease) in Net Assets Resulting from Operations....... 12,852 (307)
---------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (641) (574)
Net Realized Gain on Investments........................................ (102) (530)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (743) (1,104)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 21,781 and 65,417 Shares.......................... 23,280 65,790
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(655 and 1,060 shares, respectively).................................. 743 1,042
Payments for 383 and 720 Shares Redeemed................................ (412) (721)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(22,053 and 65,757 shares, respectively)........................... 23,611 66,111
---------- ------------
Total Increase in Net Assets............................................... 35,720 64,700
---------- ------------
NET ASSETS
Beginning of Period........................................................ 64,700 0
---------- ------------
End of Period (includes undistributed net investment income of
$89 and $4, respectively)............................................... $100,420 $ 64,700
========= ===========
</TABLE>
* Commencement of Operations.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
25
<PAGE> 29
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH AND INCOME STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS MAY 3,
ENDED 1994*
JUNE 30, THROUGH
1995 DECEMBER 31,
(UNAUDITED) 1994
----------- ------------
<S> <C> <C>
Net Asset Value, Beginning of Period........................................ $ 0.98 $ 1.00
Income from Investment Operations:
Net Investment Income.................................................. 0.0095 0.0102
Net Realized and Unrealized Gain (Loss) on Investments................. 0.1584 (0.0119)
----------- ------------
Total from Investment Operations..................................... 0.1678 (0.0017)
----------- ------------
Less Distributions:
Dividends from Net Investment Income................................... (0.0074) (0.0101)
Distributions from Realized Gains on Investments....................... (0.0013) (0.0082)
----------- ------------
Total Distributions.................................................. (0.0086) (0.0183)
----------- ------------
Net Asset Value, End of Period.............................................. $ 1.14 $ 0.98
========== ===========
Total Return+............................................................... 17.15% ++ 0.34% ++
========== ===========
Net Assets, End of Period (in thousands).................................... $100,420 $64,700
========== ===========
Ratio of Expenses to Average Net Assets..................................... 0.62% ** 0.78% **
========== ===========
Ratio of Net Investment Income to Average Net Assets........................ 1.52% ** 1.93% **
========== ===========
Portfolio Turnover Rate..................................................... 45.82% 54.18%
========== ===========
</TABLE>
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
26
<PAGE> 30
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
AGGRESSIVE GROWTH STOCK PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $296,337).................. $ 404,159
Money Market Investments
(cost $34,598)................... 34,598
---------
438,757
Cash................................ 265
Due from Sale of Securities......... 962
Dividends and Interest Receivable... 57
---------
Total Assets................... 440,041
---------
LIABILITIES
Due on Redemption of Fund Shares.... 839
Due on Purchase of Securities....... 586
Due to Investment Advisor........... 192
Accrued Expenses.................... 18
---------
Total Liabilities.............. 1,635
---------
NET ASSETS............................ $ 438,406
=========
REPRESENTED BY:
Aggregate Paid in Capital
(700,000 shares authorized,
$.01 par value; 190,736 shares
outstanding)..................... $ 323,676
Undistributed Net Investment
Income........................... 540
Undistributed Accumulated Net
Realized Gain on Investments..... 6,368
Net Unrealized Appreciation of
Investments...................... 107,822
---------
Net Assets for 190,736 Shares
Outstanding...................... $ 438,406
=========
Net Asset Value, Offering and
Redemption Price per Share....... $2.30
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Interest.......................... $ 1,182
Dividends (less foreign dividend
tax of $2)...................... 425
--------
Total Income.................... 1,607
--------
Expenses
Management Fees................... 1,044
Filing Fees....................... 14
Audit............................. 9
--------
Total Expenses.................. 1,067
--------
Net Investment Income................ 540
--------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..... 6,368
Net Unrealized Appreciation of
Investments for the Period........ 49,962
--------
Net Gain on Investments.............. 56,330
--------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............ $ 56,870
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
27
<PAGE> 31
NORTHWESTERN MUTUAL SERIES FUND, INC.
AGGRESSIVE GROWTH STOCK PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE MAY 3,
SIX MONTHS 1994*
ENDED THROUGH
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 540 $ 566
Net Realized Gain on Investments........................................ 6,368 1,836
Net Unrealized Appreciation of Investments for the Period............... 49,962 12,516
---------- ------------
Net Increase in Net Assets Resulting from Operations.................. 56,870 14,918
---------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (503) (63)
Net Realized Gain on Investments........................................ (1,836) --
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (2,339) (63)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 28,564 and 36,999 Shares.......................... 59,342 70,697
Proceeds from Sale of 128,778 Shares Issued in Acquisition of
Northwestern Mutual Aggressive Growth Stock Fund, Inc. ................ -- 245,687
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(1,096 and 35 shares, respectively)................................... 2,339 63
Payments for 2,552 and 2,184 Shares Redeemed............................ (4,902) (4,206)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(27,108 and 163,628 shares, respectively).......................... 56,779 312,241
---------- ------------
Total Increase in Net Assets............................................... 111,310 327,096
NET ASSETS
Beginning of Period........................................................ 327,096 0
---------- ------------
End of Period (includes undistributed net investment income of $540 and
$503, respectively)..................................................... $438,406 $327,096
========= ===========
</TABLE>
* Commencement of Operations.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
28
<PAGE> 32
NORTHWESTERN MUTUAL SERIES FUND, INC.
AGGRESSIVE GROWTH STOCK PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS MAY 3,
ENDED 1994*
JUNE 30, THROUGH
1995 DECEMBER 31,
(UNAUDITED) 1994
----------- ------------
<S> <C> <C>
Net Asset Value, Beginning of Period......................................... $ 2.00 $ 1.91
Income from Investment Operations:
Net Investment Income................................................... 0.0028 0.0036
Net Realized and Unrealized Gains on Investments........................ 0.3148 0.0859
----------- ------------
Total from Investment Operations...................................... 0.3176 0.0895
----------- ------------
Less Distributions:
Dividends from Net Investment Income.................................... (0.0027) (0.0005)
Distributions from Realized Gains on Investments........................ (0.0100) --
----------- ------------
Total Distributions................................................... (0.0127) (0.0005)
----------- ------------
Net Asset Value, End of Period............................................... $ 2.30 $ 2.00
========= ===========
Total Return+................................................................ 15.64%++ 4.47%++
========= ===========
Net Assets, End of Period (in thousands)..................................... $438,406 $327,096
========= ===========
Ratio of Expenses to Average Net Assets...................................... 0.49%** 0.58%**
========= ===========
Ratio of Net Investment Income to Average Net Assets......................... 0.25%** 0.29%**
========= ===========
Portfolio Turnover Rate...................................................... 22.13% 21.54%
========= ===========
</TABLE>
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
29
<PAGE> 33
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $256,492)................... $276,789
Money Market Investments
(cost $34,611).................... 34,615
Bonds
(cost $3,971)..................... 3,960
--------
315,364
Cash................................. 337
Due from Sale of Securities.......... 34,053
Dividends and Interest Receivable.... 1,980
Receivable on Foreign Currency
Contracts......................... 50
Due from Sale of Fund Shares......... 167
--------
Total Assets.................... 351,951
--------
LIABILITIES
Due on Purchase of Securities........ 32,383
Due on Foreign Currency Contracts.... 1,153
Due on Redemption of Fund Shares..... 572
Due to Investment Advisor............ 177
Accrued Expenses..................... 159
--------
Total Liabilities............... 34,444
--------
NET ASSETS............................. $317,507
=========
REPRESENTED BY:
Aggregate Paid in Capital (700,000
shares authorized, $.01 par value;
247,765 shares outstanding)....... $289,162
Undistributed Net Investment
Income............................ 4,929
Undistributed Accumulated Net
Realized Gain on Investments...... 3,114
Net Unrealized Appreciation of:
Investment Securities............. 20,290
Foreign Currency Transactions..... 12
--------
Net Assets for 247,765 Shares
Outstanding....................... $317,507
=========
Net Asset Value, Offering and
Redemption Price per Share........ $1.28
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $749)..................... $ 5,280
Interest........................... 963
-------
Total Income..................... 6,243
-------
Expenses
Management Fees.................... 1,018
Custodian Fees..................... 159
Other Expenses..................... 96
-------
Total Expenses................... 1,273
-------
Net Investment Income................. 4,970
-------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES
Net Realized Gain (Loss) on:
Investment Securities.............. 3,488
Foreign Currency Transactions...... (120)
-------
Net Realized Gain
For the Period................ 3,368
Net Unrealized Appreciation of:
Investment Securities.............. 16,115
Foreign Currency Transactions...... 16
-------
Net Unrealized Appreciation for
the Period.................... 16,131
-------
Net Gain on Investments............... 19,499
-------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $24,469
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
30
<PAGE> 34
NORTHWESTERN MUTUAL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE MAY 3,
SIX MONTHS 1994*
ENDED THROUGH
JUNE 30, DECEMBER 31,
1995 1994
----------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 4,970 $ 4,233
Net Realized Gain on Investments........................................ 3,368 4,575
Net Unrealized Appreciation (Depreciation) of Investments for the
Period................................................................. 16,131 (8,846)
----------- ------------
Net Increase (Decrease) in Net Assets Resulting from Operations....... 24,469 (38)
----------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... -- (4,907)
Net Realized Gain on Investments........................................ (2,171) (2,658)
----------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (2,171) (7,565)
----------- ------------
Fund Share Transactions
Proceeds from Sale of 15,130 and 73,071 Shares.......................... 17,829 90,632
Proceeds from Sale of 193,618 Shares Issued in Acquisition of
Northwestern Mutual International Equity Fund, Inc. ................... -- 236,438
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(1,741 and 6,300 shares, respectively)................................ 2,171 7,461
Payments for 14,715 and 27,830 Shares Redeemed.......................... (17,324) (34,395)
----------- ------------
Net Decrease in Net Assets Resulting from Fund Share Transactions
(2,156 and 245,609 shares, respectively)........................... 2,676 300,136
----------- ------------
Total Increase in Net Assets............................................... 24,974 292,533
NET ASSETS
Beginning of Period........................................................ 292,533 0
----------- ------------
End of Period (includes (over)/undistributed net investment income of
$4,929 and ($41), respectively)......................................... $ 317,507 $292,533
========= ===========
</TABLE>
* Commencement of Operations.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
31
<PAGE> 35
NORTHWESTERN MUTUAL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS MAY 3,
ENDED 1994*
JUNE 30, THROUGH
1995 DECEMBER 31,
(UNAUDITED) 1994
------------ ------------
<S> <C> <C>
Net Asset Value, Beginning of Period....................................... $ 1.19 $ 1.22
Income from Investment Operations:
Net Investment Income................................................. 0.0201 0.0182
Net Realized and Unrealized Gain (Loss) on Investments................ 0.0790 (0.0113)
------------ ------------
Total from Investment Operations.................................... 0.0991 0.0069
------------ ------------
Less Distributions:
Dividends from Net Investment Income.................................. -- (0.0209)
Distributions from Realized Gains on Investments...................... (0.0088) (0.0111)
------------ ------------
Total Distributions................................................. (0.0088) (0.0320)
------------ ------------
Net Asset Value, End of Period............................................. $ 1.28 $ 1.19
=========== ===========
Total Return+.............................................................. 8.32%++ 0.11%++
=========== ===========
Net Assets, End of Period (in thousands)................................... $317,507 $292,533
=========== ===========
Ratio of Expenses to Average Net Assets.................................... 0.72% ** 0.87% **
=========== ===========
Ratio of Net Investment Income to Average Net Assets....................... 2.83% ** 2.28% **
=========== ===========
Portfolio Turnover Rate.................................................... 17.75% 10.97%
=========== ===========
</TABLE>
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses:
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
32
<PAGE> 36
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
SELECT BOND PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Bonds
(cost $143,953).................. $148,869
Money Market Investments
(cost $26,828)................... 26,854
--------
175,723
Cash................................ 240
Interest Receivable................. 2,472
--------
Total Assets................... 178,435
--------
LIABILITIES
Due on Redemption of Fund Shares.... 264
Due to Investment Advisor........... 44
--------
Total Liabilities.............. 308
--------
NET ASSETS............................ $178,127
=========
REPRESENTED BY:
Aggregate Paid in Capital
(400,000 shares authorized, $.01
par value; 154,539 shares
outstanding)..................... $175,603
Undistributed Net Investment
Income........................... 957
Undistributed Accumulated Net
Realized Loss on Investments..... (3,375)
Net Unrealized Appreciation of
Investments...................... 4,942
--------
Net Assets for 154,539 Shares
Outstanding...................... $178,127
=========
Net Asset Value, Offering and
Redemption Price per Share....... $1.15
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Interest.......................... $ 5,849
-------
Expenses
Management Fees................... 249
-------
Net Investment Income................ 5,600
-------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investments..... (371)
Net Unrealized Appreciation of
Investments for the Period........ 13,354
-------
Net Gain on Investments.............. 12,983
-------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $18,583
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
33
<PAGE> 37
NORTHWESTERN MUTUAL SERIES FUND, INC.
SELECT BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 5,600 $ 7,962
Net Realized Loss on Investments........................................ (371) (3,004)
Net Unrealized Appreciation (Depreciation) of Investments for the
Period................................................................. 13,354 (4,221)
---------- ------------
Net Increase in Net Assets Resulting from Operations.................. 18,583 737
---------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (4,709) (7,907)
Net Realized Gain on Investments........................................ -- (75)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (4,709) (7,982)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 8,202 and 7,274 Shares............................ 9,098 8,071
Proceeds from Sale of 148,197 Shares Issued in Acquisition of
Northwestern Mutual Select Bond Fund, Inc. ............................ -- 163,901
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(4,071 and 7,517 shares, respectively)................................ 4,709 7,982
Payments for 7,360 and 28,622 Shares Redeemed........................... (8,062) (31,686)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(4,913 and 134,366 shares, respectively)........................... 5,745 148,268
---------- ------------
Total Increase in Net Assets............................................... 19,619 141,023
NET ASSETS
Beginning of Period........................................................ 158,508 17,485
---------- ------------
End of Period (includes undistributed net investment income of
$957 and $66, respectively)............................................. $178,127 $158,508
========= ===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
34
<PAGE> 38
NORTHWESTERN MUTUAL SERIES FUND, INC.
SELECT BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE YEARS
JUNE 30, ENDED DECEMBER 31
1995 --------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........... $ 1.06 $ 1.15 $ 1.14 $ 1.18 $ 1.09 $ 1.11
Income from Investment Operations:
Net Investment Income..................... 0.0373 0.0559 0.0766 0.0882 0.0923 0.0928
Net Realized and Unrealized Gain (Loss) on
Investments............................. 0.0865 (0.0847) 0.0540 (0.0045) 0.0900 (0.0107)
---------- -------- -------- -------- -------- --------
Total from Investment Operations........ 0.1238 (0.0288) 0.1306 0.0837 0.1823 0.0821
---------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income...... (0.0313) (0.0562) (0.0775) (0.0881) (0.0918) (0.0932)
Distributions from Realized Gains on
Investments............................. -- (0.0049) (0.0431) (0.0356) (0.0005) (0.0089)
---------- -------- -------- -------- -------- --------
Total Distributions..................... (0.0313) (0.0611) (0.1206) (0.1237) (0.0923) (0.1021)
---------- -------- -------- -------- -------- --------
Net Asset Value, End of Period................. $ 1.15 $ 1.06 $ 1.15 $ 1.14 $ 1.18 $ 1.09
========= ========= ========= ========= ========= =========
Total Return+.................................. 11.82%++ -2.28% 10.81% 7.74% 17.32% 8.10%
========= ========= ========= ========= ========= =========
Net Assets, End of Period (in thousands)....... $178,127 $158,508 $17,485 $15,851 $14,703 $12,124
========= ========= ========= ========= ========= =========
Ratio of Expenses to Average Net Assets........ 0.30%* 0.30% 0.30% 0.30% 0.30% 0.30%
========= ========= ========= ========= ========= =========
Ratio of Net Investment Income to Average Net
Assets....................................... 5.72%* 7.02% 6.40% 7.52% 8.11% 8.50%
========= ========= ========= ========= ========= =========
Portfolio Turnover Rate........................ 38.92% 108.00% 67.69% 63.29% 60.88% 33.14%
========= ========= ========= ========= ========= =========
</TABLE>
* Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
35
<PAGE> 39
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
HIGH YIELD BOND PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Bonds
(cost $42,688).................... $43,285
Preferred Stock
(cost $500)....................... 680
Money Market Investments
(cost $997)....................... 997
-------
44,962
Cash................................. 673
Dividends and Interest Receivable.... 892
Due from Sale of Securities.......... 525
Due from Sale of Fund Shares......... 123
-------
Total Assets.................... 47,175
-------
LIABILITIES
Due on Purchase of Securities........ 992
Due to Investment Advisor............ 22
Accrued Expenses..................... 14
Due On Redemption of Fund Shares..... 7
-------
Total Liabilities............... 1,035
-------
NET ASSETS............................. $46,140
========
REPRESENTED BY:
Aggregate Paid in Capital
(400,000 shares authorized,
$.01 par value; 44,240 shares
outstanding)...................... $44,540
Undistributed Net Investment
Income............................ 425
Undistributed Accumulated Net
Realized Gain on Investments...... 398
Net Unrealized Appreciation of
Investments....................... 777
-------
Net Assets for 44,240 Shares
Outstanding....................... $46,140
========
Net Asset Value, Offering and
Redemption Price per Share........ $1.04
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Interest........................... $2,178
Other Income....................... 50
------
Total Income..................... 2,228
------
Expenses
Management Fees.................... 121
Other Expenses..................... 11
------
Total Expenses................... 132
------
Net Investment Income................. 2,096
------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments...... 580
Net Unrealized Appreciation of
Investments for the Period......... 1,749
------
Net Gain on Investments............... 2,329
------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............. $4,425
======
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
36
<PAGE> 40
NORTHWESTERN MUTUAL SERIES FUND, INC.
HIGH YIELD BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE MAY 3,
SIX MONTHS 1994*
ENDED THROUGH
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income........................................................ $ 2,096 $ 1,937
Net Realized Gain (Loss) on Investments...................................... 580 (86)
Net Unrealized Appreciation (Depreciation) of Investments for the Period..... 1,749 (972)
---------- ------------
Net Increase in Net Assets Resulting from Operations....................... 4,425 879
---------- ------------
Dividends to Shareholders from:
Net Investment Income........................................................ (1,689) (1,919)
Net Realized Gain on Investments............................................. -- (96)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders........ (1,689) (2,015)
---------- ------------
Fund Share Transactions
Proceeds from Sale of 6,622 and 35,400 Shares................................ 6,788 35,565
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(1,625 and 2,004 shares, respectively)..................................... 1,689 1,941
Payments for 597 and 814 Shares Redeemed..................................... (610) (833)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(7,650 and 36,590 shares, respectively)................................. 7,867 36,673
---------- ------------
Total Increase in Net Assets.................................................... 10,603 35,537
NET ASSETS
Beginning of Period............................................................. 35,537 0
---------- ------------
End of Period (includes undistributed net investment income of $425
and $18, respectively)....................................................... $ 46,140 $ 35,537
========= ===========
</TABLE>
* Commencement of Operations.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
37
<PAGE> 41
NORTHWESTERN MUTUAL SERIES FUND, INC.
HIGH YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS MAY 3,
ENDED 1994*
JUNE 30, THROUGH
1995 DECEMBER 31,
(UNAUDITED) 1994
----------- ------------
<S> <C> <C>
Net Asset Value, Beginning of Period...................................... $ 0.97 $ 1.00
Income from Investment Operations:
Net Investment Income................................................ 0.0527 0.0567
Net Realized and Unrealized Gain (Loss) on Investments............... 0.0585 (0.0310)
----------- ------------
Total from Investment Operations................................... 0.1112 0.0257
----------- ------------
Less Distributions:
Dividends from Net Investment Income................................. (0.0398) (0.0562)
Distributions from Realized Gains on Investments..................... -- (0.0028)
----------- ------------
Total Distributions................................................ (0.0398) (0.0590)
----------- ------------
Net Asset Value, End of Period............................................ $ 1.04 $ 0.97
========== ===========
Total Return+............................................................. 11.53%++ 3.02%++
----------- ------------
Net Assets, End of Period (in thousands).................................. $46,140 $35,537
========== ===========
Ratio of Expenses to Average Net Assets................................... 0.56%** 0.73%**
========== ===========
Ratio of Net Investment Income to Average Net Assets...................... 8.83%** 9.40%**
========== ===========
Portfolio Turnover Rate................................................... 65.96% 130.78%
========== ===========
</TABLE>
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
38
<PAGE> 42
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Money Market Investments
(cost $109,859).................. $ 109,859
Cash................................ 166
Due from Sale of Fund Shares........ 196
Interest Receivable................. 76
---------
Total Assets................... 110,297
---------
LIABILITIES
Due on Redemption of Fund Shares.... 585
Due to Investment Advisor........... 27
---------
Total Liabilities.............. 612
---------
NET ASSETS............................ $ 109,685
=========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000 shares authorized,
$.01 par value; 109,701 shares
outstanding)..................... $ 109,685
---------
Net Assets for 109,701 Shares
Outstanding...................... $ 109,685
=========
Net Asset Value, Offering and
Redemption Price per Share....... $1.00
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Interest........................... $3,158
------
Expenses
Management Fees.................... 156
------
Net Investment Income................. 3,002
------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............. $3,002
======
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
39
<PAGE> 43
NORTHWESTERN MUTUAL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS FOR THE
ENDED JUNE YEAR ENDED
30, DECEMBER 31,
1995 1994
----------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income................................................... $ 3,002 $ 3,291
----------- ------------
Net Increase in Net Assets Resulting from Operations.................. 3,002 3,291
----------- ------------
Dividends to Shareholders from:
Net Investment Income................................................... (3,002) (3,307)
----------- ------------
Net Decrease in Net Assets Resulting from Dividends to Shareholders... (3,002) (3,307)
----------- ------------
Fund Share Transactions
Proceeds from Sale of 31,755 and 40,033 Shares.......................... 31,755 40,032
Proceeds from Sale of 91,310 Shares Issued in Acquisition of
Northwestern Mutual Money Market Fund, Inc. ........................... -- 91,310
Proceeds from Shares Issued on Reinvestment of Dividend Paid (3,002 and
2,938 shares, respectively)............................................ 3,002 2,938
Payments for 29,289 and 42,704 Shares Redeemed.......................... (29,289) (42,704)
----------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(5,468 and 91,577 shares, respectively).............................. 5,468 91,576
----------- ------------
Total Increase in Net Assets............................................... 5,468 91,560
NET ASSETS
Beginning of Period........................................................ 104,217 12,657
----------- ------------
End of Period (includes no undistributed net investment income)............ $ 109,685 $104,217
========= ===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
40
<PAGE> 44
NORTHWESTERN MUTUAL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE YEAR)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE YEARS
JUNE 30, ENDED DECEMBER 31
1995 --------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment
Operations:
Net Investment Income......... 0.0285 0.0464 0.0287 0.0340 0.0571 0.0793
Net Realized and Unrealized
Gains on Investments........ -- -- -- 0.0002 -- --
----------- -------- -------- -------- -------- --------
Total from Investment
Operations............... 0.0285 0.0464 0.0287 0.0342 0.0571 0.0793
----------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income...................... (0.0274) (0.0464) (0.0287) (0.0340) (0.0571) (0.0793)
Distributions from Realized
Gains on Investments........ -- -- -- (0.0002) -- --
----------- -------- -------- -------- -------- --------
Total Distributions......... (0.0274) (0.0464) (0.0287) (0.0342) (0.0571) (0.0793)
----------- -------- -------- -------- -------- --------
Net Asset Value, End of Period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========= ========= ========= =========
Total Return+...................... 2.91% ++ 4.03% 2.88% 3.49% 5.85% 8.23%
========== ========= ========= ========= ========= =========
Net Assets, End of Period
(in thousands)................... $109,685 $104,217 $12,657 14,091 $12,787 $13,362
========== ========= ========= ========= ========= =========
Ratio of Expenses to Average Net
Assets........................... 0.30% * 0.30% 0.30% 0.30% 0.30% 0.30%
========== ========= ========= ========= ========= =========
Ratio of Net Investment Income to
Average Net Assets............... 4.89% * 4.64% 2.87% 3.40% 5.71% 7.93%
========== ========= ========= ========= ========= =========
</TABLE>
* Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
41
<PAGE> 45
FINANCIAL STATEMENTS OF
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS
Common Stocks
(cost $744,740)................ $ 925,101
Preferred Stock
(cost $2)...................... 4
Bonds
(cost $632,622)................ 651,848
Money Market Investments
(cost $327,916)................ 328,354
----------
1,905,307
Cash.............................. 360
Dividends and Interest
Receivable..................... 12,512
Due from Sale of Fund Shares...... 100
----------
Total Assets................. 1,918,279
----------
LIABILITIES
Due on Redemption of Fund
Shares......................... 3,616
Due to Investment Advisor......... 469
Due on Futures Variation Margin... 212
----------
Total Liabilities............ 4,297
----------
NET ASSETS.......................... $1,913,982
==========
REPRESENTED BY:
Aggregate Paid in Capital
(2,000,000 shares authorized,
$.01 par value; 1,316,783
shares outstanding)............ $1,657,883
Undistributed Net Investment
Income......................... 41,120
Undistributed Accumulated Net
Realized Gain on Investments... 13,559
Net Unrealized Appreciation of:
Investment Securities.......... 200,027
Index Futures Contracts........ 1,393
----------
Net Assets for 1,316,783 Shares
Outstanding.................... $1,913,982
==========
Net Asset Value, Offering and
Redemption Price per Share..... $1.45
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $91).................... $ 11,361
Interest......................... 32,437
Other Income..................... 7
--------
Total Income................... 43,805
--------
Expenses
Management Fees.................. 2,690
--------
Net Investment Income............... 41,115
--------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on
Investments:
Investment Securities............ 8,104
Index Futures Contracts.......... 8,353
--------
Net Realized Gain on
Investments for the
Period...................... 16,457
--------
Net Unrealized Appreciation of:
Investment Securities............ 188,279
Index Futures Contracts.......... 321
--------
Net Unrealized Appreciation of
Investments for the
Period...................... 188,600
--------
Net Gain on Investments............. 205,057
--------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........... $246,172
=========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
42
<PAGE> 46
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1995 1994
---------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations
Net Investment Income.................................................. $ 41,115 $ 53,165
Net Realized Gain on Investments....................................... 16,457 5,281
Net Unrealized Appreciation (Depreciation) of Investments for the
Period................................................................ 188,600 (17,767)
---------- ------------
Net Increase in Net Assets Resulting from Operations................. 246,172 40,679
---------- ------------
Dividends to Shareholders from:
Net Investment Income.................................................. (53,160) (28)
Net Realized Gain on Investments....................................... (8,179) (782)
---------- ------------
Net Decrease in Net Assets Resulting from Dividends to
Shareholders........................................................ (61,339) (810)
Fund Share Transactions
Proceeds from Sale of 16,528 and 21,149 Shares......................... 22,533 27,441
Proceeds from Sale of 1,330,565 Shares Issued in Acquisition of
Northwestern Mutual Balanced Fund, Inc. .............................. -- 1,705,466
Proceeds from Shares Issued on Reinvestment of Dividends Paid
(44,352 and 607 shares, respectively)................................ 61,339 810
Payments for 59,871 and 88,502 Shares Redeemed......................... (81,850) (115,369)
---------- ------------
Net Increase in Net Assets Resulting from Fund Share Transactions
(1,009 and 1,263,819 shares, respectively)........................ 2,022 1,618,348
---------- ------------
Total Increase in Net Assets.............................................. 186,855 1,658,217
NET ASSETS
Beginning of Period....................................................... 1,727,127 68,910
---------- ------------
End of Period (includes undistributed net investment income of
$41,120 and $53,165 respectively)...................................... $1,913,982 $1,727,127
========== ===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
43
<PAGE> 47
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE YEARS
JUNE 30, ENDED DECEMBER 31
1995 ----------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period.......................... $ 1.31 $ 1.33 $ 1.39 $ 1.40 $ 1.19 $ 1.24
Income from Investment
Operations:
Net Investment Income........ 0.0316 0.0404 0.0613 0.0622 0.0672 0.0733
Net Realized and Unrealized
Gain (Loss) on
Investments................ 0.1575 (0.0451) 0.0837 0.0086 0.2083 (0.0515)
----------- ---------- -------- -------- -------- --------
Total from Investment
Operations.............. 0.1891 (0.0047) 0.1450 0.0708 0.2755 0.0218
----------- ---------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment
Income..................... (0.0415) (0.0005) (0.0651) (0.0607) (0.0655) (0.0718)
Distributions from Realized
Gains on Investments....... (0.0064) (0.0149) (0.1399) (0.0201) -- --
----------- ---------- -------- -------- -------- --------
Total Distributions........ (0.0478) (0.0154) (0.2050) (0.0808) (0.0655) (0.0718)
----------- ---------- -------- -------- -------- --------
Net Asset Value, End of Period.... $ 1.45 $ 1.31 $ 1.33 $ 1.39 $ 1.40 $ 1.19
========== ========== ========= ========= ========= =========
Total Return+..................... 14.57%++ 0.16% 9.91% 5.61% 23.33% 1.53%
========== ========== ========= ========= ========= =========
Net Assets, End of Period
(in thousands).................. $1,913,982 $1,727,127 $68,910 $66,006 $57,269 $42,839
========== ========== ========= ========= ========= =========
Ratio of Expenses to Average Net
Assets.......................... 0.30%* 0.30% 0.30% 0.30% 0.30% 0.30%
========== ========== ========= ========= ========= =========
Ratio of Net Investment Income to
Average Net Assets.............. 3.89%* 4.78% 4.24% 4.45% 5.11% 6.07%
========== ========== ========= ========= ========= =========
Portfolio Turnover Rate........... 22.49% 42.35% 70.91% 43.28% 55.46% 72.89%
========== ========== ========= ========= ========= =========
</TABLE>
* Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads and account fees.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
44
<PAGE> 48
NORTHWESTERN MUTUAL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
Note 1 -- Northwestern Mutual Series Fund, Inc. (the "Series Fund"), formerly
Northwestern Mutual Variable Life Series Fund, Inc., is registered as a
diversified open-end investment company under the Investment Company Act of
1940. The Series Fund consists of the Index 500 Stock Portfolio, Growth Stock
Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio,
International Equity Portfolio, Select Bond Portfolio, High Yield Bond
Portfolio, Money Market Portfolio, and Balanced Portfolio (the "Portfolios").
Shares are presently offered only to The Northwestern Mutual Life Insurance
Company ("Northwestern Mutual Life") and its segregated asset accounts.
On May 3, 1994, five new portfolios commenced operations in the Series Fund:
Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth
Stock Portfolio, International Equity Portfolio, and High Yield Bond Portfolio.
These five portfolios were organized with 700,000,000 authorized shares of
Common Stock for each of the Aggressive Growth and International Portfolios and
400,000,000 authorized shares of Common Stock for each of the Growth Stock,
Growth and Income Stock and High Yield Bond Portfolios. Par Value is $.01 per
share. Northwestern Mutual Life purchased 25,000,000 shares each of the Growth
Stock Portfolio, Growth and Income Stock Portfolio and High Yield Bond Portfolio
at $1.00 per share.
Note 2 -- The assets of Northwestern Mutual Life's variable annuity funds were
merged into the Series Fund in a tax-free exchange of fund shares on May 3,
1994. The following summarizes the merge:
<TABLE>
<CAPTION>
# OF SHARES/ UNREALIZED APPRECIATION
MERGE FROM: VALUE REDEEMED (DEPRECIATION) TRANSFERRED
-------------------------------------------------------------- -------------- --------------------------
<S> <C> <C>
Northwestern Mutual Index 500 Stock Fund, Inc. ............... 199,137,846277,484,077 16,828,536
$ $
Northwestern Mutual Aggressive Growth Stock Fund, Inc. ....... 128,778,039245,687,070 45,345,398
$ $
Northwestern Mutual International Equity Fund, Inc............ 193,618,391236,437,711 13,017,843
$ $
Northwestern Mutual Select Bond Fund, Inc. ................... 127,156,919163,901,422 (4,867,983)
$ $
Northwestern Mutual Money Market Fund, Inc. .................. 91,309,66491,309,664
$ --
Northwestern Mutual Balanced Fund, Inc........................ 1,250,574,7201,705,465,964 27,288,995
$ $
</TABLE>
<TABLE>
<CAPTION>
# OF SHARES/ AGGREGATE NET ASSETS
MERGED TO: VALUE RECEIVED OF PORTFOLIO AFTER MERGER
-------------------------------------------------------------- -------------- -------------------------
<S> <C> <C>
Northwestern Mutual Series Fund, Inc.
-- Index 500 Stock Portfolio................................ 220,157,952277,484,077
$ $ 305,458,525
-- Aggressive Growth Stock Portfolio........................ 128,778,039245,687,070
$ $ 245,687,070
-- International Equity Portfolio........................... 193,618,391236,437,711
$ $ 236,437,711
-- Select Bond Portfolio.................................... 148,196,445163,901,422
$ $ 181,055,470
-- Money Market Portfolio................................... 91,309,66491,309,664
$ $ 104,436,452
-- Balanced Portfolio....................................... 1,330,564,6791,705,465,964
$ $ 1,776,058,467
</TABLE>
The Aggressive Growth Stock and International Equity Portfolios had no assets
prior to the merger so the assets of the Funds became the assets of the
Portfolios. Hence, these Portfolios commenced operations in the Series Fund on
May 3, 1994 at $1.91 and $1.22, respectively.
Principal accounting policies are summarized below.
Note 3 -- Bonds are valued on the basis of prices furnished by a service which
determines prices for normal institutional size trading units of bonds, without
regard to exchange or over-the-counter prices. When quotations are not readily
available, bonds are valued at fair market value determined by procedures
approved by the Board of
45
<PAGE> 49
NORTHWESTERN MUTUAL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1995
Directors. Stocks listed on a national or foreign stock exchange are valued at
the final sale price, or final bid price in absence of a sale. Stocks not listed
on a national or foreign stock exchange are valued at the closing bid price on
the over-the-counter market. Money market investments, other than in the Money
Market Portfolio, with maturities exceeding sixty days but generally not
exceeding one year are valued by marking to market on the basis of an average of
the most recent bid prices or yields. Securities with maturities of sixty days
or less and all securities in the Money Market Portfolio are valued on an
amortized cost basis or, if the current market value differs substantially from
the amortized cost, by marking to market.
Note 4 -- Securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at date of valuation.
Purchases and sales of securities and income items denominated in foreign
currencies are translated in U.S. dollar amounts on the respective dates of such
transactions. When the International Equity Portfolio purchases or sells foreign
securities it may enter into a foreign exchange currency contract to minimize
market risk from the trade date to the settlement date of such transaction. Such
foreign exchange currency contracts are marked to market daily.
The International Equity Portfolio does not separately report the results of
operations resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.
Net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade date and
settlement date on security transactions, the differences between the amounts of
dividends and foreign withholding taxes recorded on the portfolio's books, and
the U.S. dollar equivalent of the amounts actually received or paid.
Note 5 -- The Index and Balanced Portfolios invest in financial futures as an
alternative to investing in individual securities. The Index and Balanced
Portfolios could be exposed to market risk due to changes in the value of the
underlying securities or due to an illiquid secondary market. Financial futures
are marked to market based upon quoted settlement prices; variation margin
payments are received or made to reflect changes in unrealized appreciation or
depreciation. Realized gains or losses are recognized when financial futures
contracts are closed.
Note 6 -- Interest income and discounts earned are recorded daily on the accrual
basis and dividend income is recorded on the ex-dividend date or as soon as
information from foreign securities is available. Where applicable, dividends
are recorded net of foreign dividend tax. Discounts and premiums on securities
purchased are amortized over the life of the respective securities when required
for federal income tax purposes. Securities transactions are accounted for on
the day following the trade date except for money market investments which are
accounted for on the trade date. The basis for determining cost on sale of
securities is identified cost. For the period ended June 30, 1995, transactions
in securities other than money market investments were:
<TABLE>
<CAPTION>
PERIOD ENDED JUNE 30, 1995
--------------------------------------------------------------------
TOTAL U.S. GOVT TOTAL U.S. GOVT
SECURITY SECURITY SECURITY SECURITY
PORTFOLIOS PURCHASES PURCHASES SALES/MATURITIES SALES/MATURITIES
------------------------------------------ ------------ ------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Index 500................................. $ 19,516,113 $ 0 $ 5,260,953 $ 0
Growth Stock.............................. 21,033,825 0 7,893,103 0
Growth and Income......................... 60,403,251 0 33,955,576 0
Aggressive Growth......................... 136,739,468 0 68,848,986 0
International............................. 37,568,365 2,897,648 32,789,435 0
Select Bond............................... 58,430,292 35,374,070 62,296,291 43,997,382
High Yield Bond........................... 33,572,883 0 25,525,588 0
Balanced.................................. 425,199,173 291,074,292 319,843,122 213,794,984
</TABLE>
Note 7 -- The Series Fund and its Portfolios are parties to annually renewable
contracts pursuant to which each Portfolio pays a charge for investment
management and administrative services. Each Portfolio pays a monthly fee for
these investment advisory services at an annual rate based on the average daily
net asset values of each Portfolio. For the Index 500 Stock Portfolio the rate
is .20%, and for the Select Bond, Money Market and Balanced
46
<PAGE> 50
NORTHWESTERN MUTUAL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1995
Portfolios the rate is .30%. For the other Portfolios the rate for the
investment advisory fee is graded by the asset size of the Portfolio according
to the following schedule:
<TABLE>
<CAPTION>
PORTFOLIO FIRST $50 MILLION NEXT $50 MILLION EXCESS
---------------------------------------------------------------- ----------------- ---------------- ------
<S> <C> <C> <C>
Aggressive Growth............................................... .80% .65% .50%
International Equity............................................ .85% .65% .65%
Growth Stock.................................................... .60% .50% .40%
Growth and Income............................................... .70% .60% .55%
High Yield Bond................................................. .60% .50% .40%
</TABLE>
These amounts are paid to Northwestern Mutual Investment Services, Inc. ("NMIS")
a wholly-owned subsidiary of Northwestern Mutual Life, which is the manager and
investment adviser of the Fund. Northwestern Mutual Life is also a party to the
agreement. All Portfolios pay investment management expenses; certain other
costs are paid by Northwestern Mutual Life or NMIS.
J.P. Morgan Investment Management, Inc. ("J.P. Morgan") and Templeton Investment
Counsel, Inc. ("Templeton Counsel") have been retained under an investment
sub-advisory agreement to provide investment advice and, in general, to conduct
the management investment program of the Growth and Income Stock Portfolio and
the International Equity Portfolio, respectively. Of the advisory fees received
by NMIS from the Growth and Income Stock Portfolio, .45% on the first $100
million of the Portfolio's net assets, .40% on the next $100 million, .35% on
the next $200 million and .30% on the net assets in excess of $400 million will
be paid by NMIS to J.P. Morgan. Of the advisory fees received by NMIS from the
International Equity Portfolio, .50% on the first $100 million of the
Portfolio's net assets and .40% on net assets in excess of $100 million will be
paid by NMIS to Templeton Counsel.
Note 8 -- The Series Fund has elected to be taxed as a regulated investment
company meeting certain requirements under the Internal Revenue Code. Since it
expects to distribute all net investment income and net realized capital gains,
the Series Fund anticipates incurring no federal income taxes. Net realized
capital losses of $1,704,510 in the Select Bond Portfolio and $2,207,870 in the
Balanced Portfolio may be carried forward and offset against future net realized
capital gains. These amounts expire in 2002. A capital loss carryforward of
$392,328 was utilized in the Index 500 Stock Portfolio during the year ended
December 31, 1994. As of June 30, 1995, the federal income tax basis of
investments is the same as the cost basis in the financial statements except for
the International Equity Portfolio. The net unrealized appreciation
(depreciation), and the gross unrealized appreciation and depreciation, for
federal income tax purposes are shown below:
<TABLE>
<CAPTION>
GROWTH GROWTH AND AGGRESSIVE
INDEX 500 STOCK INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ----------- --------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation............. $ 81,729,072 $ 6,829,393 $ 9,586,501 $113,066,793
Gross unrealized depreciation............. 6,758,706 593,824 1,459,447 5,243,903
------------ ------------ ----------- --------------
Net unrealized appreciation............... $ 74,970,366 $ 6,235,569 $ 8,127,054 $107,822,889
============= ============= ============ ==============
Federal income tax basis of investments... $325,036,116 $55,277,553 $92,089,532 $330,934,997
============= ============= ============ ==============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL HIGH YIELD
EQUITY SELECT BOND BOND BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ----------- --------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation............. $ 29,150,710 $ 5,636,162 $ 1,463,254 $ 226,277,396
Gross unrealized depreciation............. 10,328,070 693,936 688,211 26,249,308
------------ ------------ ----------- --------------
Net unrealized appreciation............... $ 18,822,640 $ 4,942,227 $ 775,043 $ 200,028,088
============= ============= ============ ==============
Federal income tax basis of investments... $296,541,644 $170,780,861 $44,185,445 $1,705,278,961
============= ============= ============ ==============
</TABLE>
The federal income tax basis of investments was $109,858,546 for the Money
Market Portfolio.
Taxable distributions from net investment income and realized capital gains in
the International Equity Portfolio differ from book amounts earned during the
period due to differences in the timing of capital recognition and due to the
reclassification of certain gains or losses from capital to income.
For Federal income tax purposes, net unrealized appreciation of $795,825 and
$1,393,100 on open futures contracts for the Index 500 and Balanced Portfolios,
respectively, is required to be treated as realized gains.
47
<PAGE> 51
NORTHWESTERN MUTUAL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1995
Note 9 -- The costs associated with organizing the five new Portfolios and
certain other initial period costs have been incurred by The Northwestern Mutual
Life Insurance Company. The Series Fund is not obligated to repay these costs.
Note 10 -- Dividends from net investment income and net realized capital gains
are declared each year for the Index 500, Growth Stock, Growth and Income,
Aggressive Growth, International, Select Bond, High Yield Bond and Balanced
Portfolios and each business day for the Money Market Portfolio. Dividend
distributions are described below.
A dividend was declared on May 2, 1995, payable to shareholders of record on May
2, 1995. Dividends paid from 1994 net investment income and 1994 net capital
gains were as follows:
<TABLE>
<CAPTION>
NET
INVESTMENT NET
PORTFOLIOS INCOME CAPITAL GAINS
--------------------------------------------------------------------------- ----------- -------------
<S> <C> <C>
Index 500.................................................................. $ 64,846 --
Growth Stock............................................................... 6,489 --
Growth and Income.......................................................... 4,761 $ 101,563
Aggressive Growth.......................................................... 502,448 1,836,281
International.............................................................. -- 2,170,803
Select Bond................................................................ 63,551 --
High Yield Bond............................................................ 18,833 --
Balanced................................................................... 53,159,765 8,178,849
</TABLE>
A dividend was declared on June 26, 1995, payable to shareholders of record on
June 26, 1995. Dividends were paid from 1995 net investment income and were as
follows:
<TABLE>
<CAPTION>
NET
INVESTMENT
PORTFOLIOS INCOME
----------------------------------------------------------------------------------------- ----------
<S> <C>
Index 500................................................................................ $3,829,315
Growth Stock............................................................................. 459,372
Growth and Income........................................................................ 636,176
Select Bond.............................................................................. 4,645,196
High Yield Bond.......................................................................... 1,670,096
</TABLE>
Note 11 -- A Special Meeting of the stockholders of Northwestern Mutual Series
Fund, Inc. was held at 720 East Wisconsin Avenue, Milwaukee, Wisconsin, on March
29, 1995.
The stockholders cast the following votes on the resolutions presented:
BE IT RESOLVED, that the following persons are nominated and elected as
Directors of the Corporation to serve for the term provided in the By-Laws:
<TABLE>
<CAPTION>
FOR ABSTAIN
<S> <C> <C>
Stephen N. Graff 2,270,116,766.25 102,692,132.73
John K. MacIver 2,266,153,929.25 106,654,969.73
Martin F. Stein 2,268,092,761.36 104,716,137.62
James D. Ericson 2,270,768,173.35 102,040,725.63
William J. Blake 2,268,894,605.36 103,914,293.62
</TABLE>
BE IT RESOLVED, that the selection of Price Waterhouse LLP, independent
accountants, as auditors of the Corporation is hereby ratified.
YES 2,266,641,454.01 NO 28,050,550.26 ABSTAIN 78,116,894.71
48
<PAGE> 52
NORTHWESTERN MUTUAL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1995
BE IT RESOLVED, that the investment advisory agreement between the Corporation,
NMIS and The Northwestern Mutual Life Insurance Company for the Growth and
Income Stock Portfolio is hereby approved and that the investment sub-advisory
agreement between the Corporation, NMIS and J.P. Morgan Investment Management,
Inc. for the Growth and Income Stock Portfolio is hereby approved.
YES 62,729,865.96 NO 703,277.71 ABSTAIN 2,324,267.25
BE IT RESOLVED, that the investment advisory agreement between the Corporation,
NMIS and The Northwestern Mutual Life Insurance Company for the Growth Stock
Portfolio is hereby approved.
YES 39,112,648.85 NO 1,136,499.86 ABSTAIN 1,658,855.64
BE IT RESOLVED, that the investment advisory agreement between the Corporation,
NMIS and The Northwestern Mutual Life Insurance Company for the Aggressive
Growth Stock Portfolio is hereby approved.
YES 153,485,939.4 NO 2,613,557.91 ABSTAIN 7,528,159.97
BE IT RESOLVED, that the investment advisory agreement between the Corporation,
NMIS and The Northwestern Mutual Life Insurance Company for the High Yield Bond
Portfolio is hereby approved.
YES 34,244,453.77 NO 156,184.39 ABSTAIN 2,189,223.37
BE IT RESOLVED, that the investment advisory agreement between the Corporation,
NMIS and The Northwestern Mutual Life Insurance Company for the International
Equity Portfolio is hereby approved and that the investment sub-advisory
agreement between NMIS and Templeton Investment Counsel, Inc. for the
International Equity Portfolio is hereby approved.
YES 231,607,721.07 NO 3,840,003.82 ABSTAIN 10,160,909.98
49
<PAGE> 53
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (94.7%)
AEROSPACE (2.1%)
The Boeing Company 32,400 $ 2,029
EG&G, Inc. 5,000 84
General Dynamics Corporation 6,000 266
Lockheed Martin Corporation 18,954 1,196
Loral Corporation 8,000 414
McDonnell Douglas Corporation 10,800 829
Northrop Corporation 4,700 245
Raytheon Company 11,700 908
Rockwell International Corporation 20,500 938
TRW Inc. 6,200 495
United Technologies Corp. 11,700 914
--------
Total 8,318
--------
AIRLINES (0.3%)
*AMR Corporation 7,200 537
Delta Air Lines, Inc. 4,800 354
Southwest Airlines Co. 13,600 325
*USAir Group, Inc. 5,500 64
--------
Total 1,280
--------
APPAREL, TEXTILES AND FOOTWEAR (0.4%)
Brown Group, Inc. 1,700 39
*Fruit of the Loom Incorporated 7,200 152
Liz Claiborne, Inc. 7,100 151
Nike, Inc. 6,800 571
Reebok International Ltd. 7,600 258
Russell Corp. 3,700 106
Springs Industries, Inc. 1,900 71
Stride Rite Corp. 4,700 49
VF Corporation 6,000 322
--------
Total 1,719
--------
AUTO & TRUCKS (2.0%)
Chrysler Corporation 35,000 1,675
Ford Motor Company 97,300 2,894
General Motors Corporation 70,800 3,319
*Navistar International Corp. 7,100 107
PACCAR Incorporated 3,635 170
--------
Total 8,165
--------
AUTO RELATED (0.6%)
Cooper Tire & Rubber Company 7,900 192
Dana Corporation 9,600 275
Eaton Corporation 7,400 430
Echlin Inc. 5,600 195
Genuine Parts Company 11,600 439
Goodyear Tire & Rubber Company 14,400 594
SPX Corp. 1,200 13
Snap-On Incorporated 3,800 147
--------
Total 2,285
--------
BANKS (5.4%)
Banc One Corporation 37,350 1,204
Bank of Boston Corporation 10,500 394
Bank of New York Company Inc. 18,100 731
BankAmerica Corporation 35,500 1,868
Bankers Trust New York Corporation 7,400 459
Barnett Banks Inc. 9,200 471
Boatmans Bancshares, Inc. 11,900 419
Chase Manhattan Corporation 16,800 790
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
BANKS (CONTINUED)
Chemical Banking Corporation 22,800 $ 1,077
Citicorp 37,600 2,176
Corestates Financial Corp. 13,700 478
First Chicago Corporation 8,500 509
First Fidelity Bancorporation 7,700 454
First Interstate Bancorp 7,200 578
First Union Corporation 16,300 738
Fleet Financial Group Inc. 13,400 497
KeyCorp 22,500 706
Mellon Bank Corporation 13,850 576
J.P. Morgan & Company, Inc. 17,800 1,248
NBD Bancorp, Inc. 15,200 486
National City Corp. 13,900 408
NationsBank Corp. 25,700 1,378
Norwest Corporation 30,700 883
PNC Financial Corp. 21,600 570
Shawmut National Corp. 12,200 389
Suntrust Banks Inc. 10,900 635
U.S. Bancorp of Oregon 9,300 224
Wachovia Corporation 16,200 579
Wells Fargo & Company 4,700 847
--------
Total 21,772
--------
BEVERAGES (3.5%)
Anheuser-Busch Companies, Inc. 24,300 1,382
Brown-Forman Corp. 6,500 217
The Coca-Cola Company 120,100 7,656
Adolph Coors Co. 3,600 59
Pepsico Inc. 74,600 3,404
Seagram Company Ltd. 35,300 1,222
--------
Total 13,940
--------
BUILDING & CONSTRUCTION (0.3%)
Centex Corporation 2,700 76
Crane Co. 2,900 105
Kaufman & Broad Home Corp. 3,000 43
Masco Corporation 14,900 402
Morrison Knudsen Corporation 3,000 20
*Owens-Corning Fiberglas
Corporation 4,500 166
Pulte Corporation 2,500 70
Sherwin-Williams Company 8,100 289
--------
Total 1,171
--------
BUILDING-FOREST PRODUCTS (0.7%)
Boise Cascade Corporation 4,500 182
Champion International 8,900 464
Georgia-Pacific Corporation 8,600 746
Louisiana-Pacific Corporation 10,200 268
Potlatch Corporation 2,800 117
Weyerhaeuser Company 19,500 919
--------
Total 2,696
--------
CHEMICALS (2.9%)
Air Products & Chemicals, Inc. 10,600 591
Dow Chemical Company 26,100 1,876
E.I. Du Pont De Nemours & Co. 52,300 3,596
Eastman Chemical Company 7,825 466
Ecolab, Inc. 6,400 157
*FMC Corporation 3,500 235
First Mississippi Corp. 1,900 65
W.R. Grace & Co. 8,900 546
</TABLE>
50
<PAGE> 54
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
CHEMICALS (CONTINUED)
Great Lakes Chemical 6,300 $ 380
Hercules Incorporated 11,000 536
Mallinckrodt Group 7,300 259
Monsanto Company 10,800 973
PPG Industries Inc. 19,500 838
Praxair, Inc. 13,100 328
Rohm & Haas Company 6,400 351
Union Carbide Corporation 13,000 434
--------
Total 11,631
--------
CHEMICALS-SPECIALTY (0.4%)
Avery Dennison Corp. 5,000 200
Engelhard Corp. 9,000 386
B.F. Goodrich Company 2,500 134
Morton International, Inc. 14,000 410
Nalco Chemical Company 6,400 233
Sigma-Aldrich Corp. 4,700 231
--------
Total 1,594
--------
COAL, GAS & PIPELINE (0.1%)
Eastern Enterprises 1,900 57
NACCO Industries, Inc. 800 48
Sonat Inc. 8,200 250
--------
Total 355
--------
CONTAINERS (0.2%)
Ball Corporation 2,900 101
Bemis Company, Inc. 4,900 127
*Crown Cork & Seal Company, Inc. 8,500 426
--------
Total 654
--------
DIVERSIFIED (2.0%)
Allied Signal Inc. 26,900 1,197
Corning Inc. 21,700 711
The Dial Corp. 8,800 218
ITT Corp. 10,000 1,175
Minnesota Mining & Manufacturing Co. 39,800 2,279
National Service Industries, Inc. 4,600 133
Ogden Corporation 4,600 101
*Teledyne, Inc. 5,300 130
Tenneco Inc. 17,100 787
Textron Inc. 8,100 471
Tyco Laboratories, Inc. 7,200 389
Whitman Corporation 9,900 192
Worthington Industries, Inc. 8,650 177
--------
Total 7,960
--------
DRUGS (5.2%)
*ALZA Corp. 7,800 182
American Home Products Corporation 29,200 2,259
*Amgen Inc. 12,500 1,005
Bristol-Myers Squibb Company 48,000 3,270
Eli Lily & Company 27,700 2,174
McKesson Corporation 3,600 168
Merck & Co., Inc. 117,100 5,738
Pfizer Inc. 29,900 2,762
Schering-Plough Corporation 35,200 1,553
Upjohn Company 16,400 621
Warner-Lambert Company 12,800 1,106
--------
Total 20,838
--------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
ELECTRICAL EQUIPMENT (3.0%)
Emerson Electric Co. 20,100 $ 1,580
General Electric Company 160,400 9,043
W.W. Grainger, Inc. 4,800 282
Honeywell Inc. 12,100 522
Raychem Corp. 4,200 161
Thomas & Betts Corporation 1,900 130
Westinghouse Electric Corporation 33,900 496
--------
Total 12,214
--------
ELECTRONICS (2.5%)
*Advanced Micro Devices, Inc. 9,800 356
AMP Incorporated 19,900 841
*Applied Materials Inc. 8,000 693
Harris Corporation 3,700 191
Intel Corp. 78,400 4,964
Micron Technology 19,400 1,065
*National Semiconductor
Corporation 11,800 327
Perkin-Elmer Corporation 4,000 142
Tektronix, Inc. 3,100 153
Texas Instruments Incorporated 8,800 1,178
*Zenith Electronics Corp. 4,400 32
--------
Total 9,942
--------
ENGINEERING & CONSTRUCTION (0.1%)
Fluor Corporation 7,800 406
--------
ENVIRONMENTAL CONTROL (0.7%)
Browning-Ferris Industries Inc. 20,200 730
Johnson Controls, Inc. 3,900 220
Laidlaw Transportation Limited 26,300 253
Millipore Corp. 2,100 142
Safety-Kleen Corp. 5,500 89
WMX Technologies, Inc. 45,800 1,300
Zurn Industries, Inc. 1,100 22
--------
Total 2,756
--------
FEDERAL GOVERNMENT AGENCY RELATED (0.9%)
Federal Home Loan Mortgage Corp. 17,100 1,176
Federal National Mortgage Assoc. 25,800 2,435
--------
Total 3,611
--------
FINANCIAL SERVICES (1.8%)
American Express Company 47,000 1,651
Beneficial Corporation 5,000 220
Dean Witter, Discover & Co. 16,000 752
Household International Inc. 9,200 455
MBNA Corp. 14,100 476
Marsh & McLennan Companies, Inc. 6,900 560
Merrill Lynch & Co., Inc. 16,700 877
Salomon Inc. 10,100 405
Transamerica Corporation 6,600 384
Travelers Group Inc. 30,333 1,327
--------
Total 7,107
--------
FOOD SERVICE/LODGING (1.0%)
*Darden Restaurant Inc. 15,000 163
*Harrah's Entertainment 9,700 378
Hilton Hotels Corporation 4,600 323
Luby's Cafeterias, Inc. 2,200 44
Marriott International 11,600 416
McDonald's Corporation 65,700 2,571
*Ryan's Family Steak Houses, Inc. 4,900 39
</TABLE>
51
<PAGE> 55
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOOD SERVICE/LODGING (CONTINUED)
*Shoney's Inc. 3,800 $ 45
Wendy's International, Inc. 9,700 173
--------
Total 4,152
--------
FOODS (3.1%)
Archer Daniels Midland Company 48,840 910
CPC International Corp. 13,900 858
Campbell Soup Company 23,600 1,156
ConAgra Inc. 23,200 809
General Mills, Inc. 15,000 771
H.J. Heinz Company 23,100 1,025
Hershey Foods Corp. 8,200 453
Kellogg Company 20,800 1,485
Pioneer Hi-Bred International 8,000 336
Quaker Oats Company 12,700 418
Ralston Purina Group 9,500 485
Sara Lee Corporation 45,400 1,294
Unilever, N.V. 15,200 1,978
Wm. Wrigley Jr. Company 11,000 510
--------
Total 12,488
--------
HOSPITAL SUPPLIES (3.6%)
Abbott Laboratories Inc. 75,600 3,062
Allergan Incorporated 6,100 165
C.R. Bard, Inc. 4,900 147
Bausch & Lomb Inc. 5,500 228
Baxter International Inc. 26,500 964
Becton, Dickinson & Company 6,300 367
*Beverly Enterprises, Inc. 8,100 100
*Biomet, Inc. 11,000 171
*Boston Scientific Corp. 14,200 453
Columbia/HCA Healthcare
Corporation 42,000 1,817
*Community Psychiatric Centers 4,000 45
Johnson & Johnson 61,100 4,132
Manor Care, Inc. 5,900 172
Medtronic, Incorporated 10,900 841
St. Jude Medical, Inc. 4,400 221
*Tenet Healthcare Corp. 18,900 272
United Healthcare Corp. 16,400 679
U.S Healthcare Incorporated 15,200 466
U.S. Surgical Corporation 5,400 113
--------
Total 14,415
--------
HOUSEHOLD FURNITURE/APPLIANCES (0.6%)
Armstrong World Industries, Inc. 3,500 175
Bassett Furniture Industries,
Inc. 1,299 36
Black & Decker Corporation 8,100 250
Maytag Corporation 10,200 163
Newell Co. 15,000 368
Premark International, Inc. 5,800 301
Rubbermaid, Inc. 15,200 422
The Stanley Works 4,200 159
Whirlpool Corporation 7,000 385
--------
Total 2,259
--------
INSURANCE (2.6%)
Aetna Life & Casualty Company 10,700 673
Alexander & Alexander Services 4,200 100
American General Corporation 19,400 655
American International Group,
Inc. 29,900 3,409
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
INSURANCE (CONTINUED)
CIGNA Corporation 6,800 $ 528
The Chubb Corporation 8,200 657
General Re Corporation 7,800 1,044
Jefferson-Pilot Corp. 4,600 252
Lincoln National Corporation 9,000 394
Loews Corp. 5,600 678
Providian Corporation 9,100 330
SAFECO Corp. 6,000 345
St. Paul Companies, Inc. 8,000 394
Torchmark Corporation 6,800 257
UNUM Corporation 6,900 323
USF&G Corp. 9,400 153
USLIFE Corporation 2,200 89
--------
Total 10,281
--------
LEISURE RELATED (1.4%)
*Bally Entertainment Corporation 4,300 53
Brunswick Corporation 9,100 155
Walt Disney Company 49,300 2,742
Fleetwood Enterprises, Inc. 4,400 87
Handleman Co. 3,100 30
Hasbro Inc. 8,300 264
*King World Productions, Inc. 3,500 142
Mattel, Inc. 20,931 544
Outboard Marine Corporation 1,800 35
Skyline Corporation 1,000 18
*Viacom Incorporated 34,056 1,571
--------
Total 5,641
--------
MACHINERY (1.4%)
Briggs & Stratton Corporation 2,800 97
Caterpillar Inc. 18,900 1,214
Cincinnati Milacron Inc. 3,200 86
*Clark Equipment Company 1,600 138
Cooper Industries, Inc. 11,100 438
Cummins Engine Company, Inc. 3,900 170
Deere & Company 8,200 702
Dover Corporation 5,400 393
Foster Wheeler Corporation 3,400 120
General Signal Corporation 4,500 179
Giddings & Lewis Company 3,300 59
Harnischfeger Industries, Inc. 4,400 152
Illinois Tool Works Inc. 10,800 594
Ingersoll-Rand Company 10,000 383
Pall Corporation 11,000 245
Parker-Hannifin Corporation 6,950 252
The Timken Company 2,900 134
TRINOVA Corp. 2,700 95
*Varity Corporation 3,900 172
--------
Total 5,623
--------
MEDIA (1.0%)
CBS Inc. 5,800 389
Capital Cities/ABC, Inc. 14,600 1,576
Comcast Corp. 22,650 420
*Cox Communications Inc. 2 1
*Tele-Communications, Inc. 61,800 1,448
--------
Total 3,834
--------
METALS & MINING (1.3%)
Alcan Aluminum Limited 21,300 644
</TABLE>
52
<PAGE> 56
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
METALS & MINING (CONTINUED)
Aluminum Co. of America 16,900 $ 847
ASARCO, Inc. 4,000 122
Barrick Gold Corporation 33,500 846
Cyprus Minerals Co. 8,750 249
Echo Bay Mines Limited 10,700 96
Homestake Mining Company 13,100 216
Inco Limited 11,100 314
Newmont Mining Corporation 8,188 343
Phelps Dodge Corporation 6,600 389
Placer Dome Incorporated 22,600 590
Reynolds Metals Company 6,000 311
Santa Fe Pacific Gold Corporation 12,460 151
--------
Total 5,118
--------
OFFICE EQUIPMENT (4.1%)
*Amdahl Corporation 11,200 125
Apple Computer, Inc. 11,500 534
*Cabletron Systems Inc. 6,800 362
*Ceridian Corp. 4,300 159
*Cisco Systems Incorporated 25,400 1,284
*Compaq Computer Corporation 24,800 1,125
*Cray Research, Inc. 2,300 56
*Data General Corporation 3,400 33
*Digital Equipment Corporation 13,900 566
Hewlett-Packard Company 48,300 3,598
*Intergraph Corp. 4,300 48
International Business Machines
Corp. 55,000 5,280
Moore Corporation Ltd. 9,400 208
Pitney Bowes Inc. 14,300 549
*Silicon Graphics 13,700 546
*Sun Microsystems Inc. 9,100 441
*Tandem Computers Inc. 11,000 177
*Unisys Corporation 16,200 176
Xerox Corporation 10,100 1,184
--------
Total 16,451
--------
OFFICE EQUIPMENT-SERVICES (2.8%)
Alco Standard Corporation 5,200 415
Autodesk, Inc. 4,500 193
Automatic Data Processing, Inc. 13,700 861
Computer Associates International
Inc. 15,200 1,030
*Computer Sciences Corp. 5,200 296
First Data Corporation 11,300 643
*Lotus Development Corporation 4,500 287
*Microsoft Corporation 55,100 4,980
*Novell, Inc. 34,700 692
*Oracle Systems 40,800 1,576
Shared Medical Systems Corp. 2,200 88
--------
Total 11,061
--------
OIL & GAS-DOMESTIC (1.6%)
Amerada Hess Corporation 8,800 430
Ashland Oil, Inc. 5,900 207
Atlantic Richfield Company 15,200 1,668
Burlington Resource Inc. 12,000 443
Coastal Corp. 9,900 301
Kerr-McGee Corporation 4,900 263
Louisiana Land & Exploration Co. 3,200 128
Occidental Petroleum Corporation 30,100 689
*Oryx Energy Company 9,800 135
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
OIL & GAS-DOMESTIC (CONTINUED)
Pennzoil Company 4,400 $ 207
Phillips Petroleum Company 24,800 828
*Santa Fe Energy Resources, Inc. 8,500 81
Sun Company, Inc. 10,100 276
Unocal Corp. 23,100 638
--------
Total 6,294
--------
OIL & GAS-INTERNATIONAL (6.4%)
Amoco Company 47,000 3,131
Chevron Corp. 61,800 2,881
Exxon Corporation 117,700 8,312
Mobil Corporation 37,500 3,600
Royal Dutch Petroleum Co., ADR 50,800 6,191
Texaco Inc. 24,600 1,614
--------
Total 25,729
--------
OIL FIELD SERVICES (0.7%)
Baker Hughes Inc. 13,400 275
Dresser Industries, Inc. 17,300 385
Halliburton Company 10,800 386
Helmerich & Payne, Inc. 2,300 68
McDermott International, Inc. 5,100 123
*Rowan Companies, Inc. 8,000 65
Schlumberger Limited 22,900 1,423
*Western Atlas Inc. 5,000 222
--------
Total 2,947
--------
PAPER (1.1%)
Federal Paper Board Company, Inc. 4,000 141
International Paper Company 12,000 1,029
James River Corp. of Virginia 7,800 215
Kimberly-Clark Corporation 15,200 910
Mead Corp. 5,300 315
Scott Paper Company 14,300 708
*Stone Container Corporation 8,600 183
Temple-Inland Inc. 5,300 252
Union Camp Corporation 6,600 382
Westvaco Corporation 6,400 283
--------
Total 4,418
--------
PHOTO & OPTICAL (0.5%)
Eastman Kodak Company 32,200 1,952
Polaroid Corporation 4,300 175
--------
Total 2,127
--------
PRINTING & PUBLISHING (1.6%)
American Greetings Corp. 7,000 206
Deluxe Corp. 7,800 258
R.R. Donnelley & Sons Company 14,400 518
Dow Jones & Company, Inc. 9,200 339
The Dun & Bradstreet Corporation 16,100 845
Gannett Company, Inc. 13,300 722
Harcourt General 6,900 293
The John H. Harland Company 2,900 66
Jostens, Inc. 4,300 91
Knight-Ridder Inc. 4,700 267
McGraw-Hill, Inc. 4,700 357
Meredith Corporation 2,600 66
New York Times Co. 9,100 214
Time Warner Inc. 36,000 1,481
Times Mirror Company 10,600 253
</TABLE>
53
<PAGE> 57
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
PRINTING & PUBLISHING (CONTINUED)
Tribune Company 6,200 $ 381
--------
Total 6,357
--------
PROFESSIONAL SERVICES (0.4%)
H & R Block, Inc. 9,900 407
*CUC International Inc. 10,900 458
Interpublic Group of Cos., Inc. 7,400 278
Service Corporation International 9,100 288
--------
Total 1,431
--------
RAILROADS (1.0%)
Burlington Northern Railroad 8,500 539
CSX Corporation 10,000 751
Conrail Incorporated 7,400 412
Norfolk Southern Corporation 12,500 842
Santa Fe Pacific Corp. 14,388 367
Union Pacific Corporation 19,400 1,074
--------
Total 3,985
--------
RETAIL-FOOD (0.7%)
Albertson's, Inc. 24,100 717
American Stores Co. 14,100 397
Bruno's Inc. 7,400 86
Fleming Companies, Inc. 3,500 93
Giant Food Inc. 5,600 159
Great Atlantic & Pacific Tea Co.,
Inc. 3,600 95
*The Kroger Company 10,600 285
Supervalu Inc. 6,600 192
Sysco Corporation 17,300 510
Winn-Dixie Stores, Inc. 7,200 416
--------
Total 2,950
--------
RETAIL-GENERAL (4.7%)
Charming Shoppes Incorporated 9,400 49
Circuit City Stores, Inc. 9,100 288
Dayton Hudson Corporation 6,800 488
Dillard Department Stores, Inc. 10,700 314
The Gap, Inc. 13,600 474
Home Depot, Inc. 42,899 1,743
K Mart Corporation 43,300 633
The Limited Inc. 33,800 744
Longs Drug Stores Corp. 1,900 71
Lowe's Companies, Inc. 15,100 451
May Department Stores Company 23,500 978
Melville Corporation 9,900 339
Mercantile Stores Company 3,500 163
Nordstrom, Inc. 7,800 323
J.C. Penney Company, Inc. 22,000 1,056
Pep Boys - Manny, Moe & Jack 5,800 155
*Price/Costco, Inc. 18,407 299
Rite Aid Corporation 8,000 205
Sears, Roebuck & Company 36,800 2,203
The TJX Companies, Inc. 6,900 91
Tandy Corporation 7,000 363
*Toys "R" Us 26,300 769
Wal-Mart Stores, Inc. 217,600 5,821
Walgreen Company 11,700 586
*Woolworth Corp. 12,600 190
--------
Total 18,796
--------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
SAVINGS & LOAN (0.2%)
H.F. Ahmanson & Company 11,100 $ 244
Golden West Financial Corporation 5,600 264
Great Western Financial
Corporation 12,800 264
--------
Total 772
--------
SOAPS & TOILETRIES (2.2%)
Alberto-Culver Company 2,600 79
Avon Products, Inc. 6,500 436
The Clorox Company 5,000 326
Colgate-Palmolive Co. 13,700 1,002
Gillette Company 42,000 1,874
International Flavors & Fragrances, Inc. 10,600 527
The Procter & Gamble Company 65,100 4,679
--------
Total 8,923
--------
STEEL (0.4%)
*Armco Inc. 10,000 68
Bethlehem Steel Corporation 10,400 169
Inland Steel Industries, Inc. 4,600 140
Nucor Corp. 8,300 444
USX-Marathon Group 28,200 557
USX-U S Steel Group Inc. 7,200 248
--------
Total 1,626
--------
TELECOMMUNICATIONS (3.4%)
AT&T Corporation 149,900 7,963
*Andrew Corporation 3,650 211
*DSC Communications Corp. 10,800 502
*M/A-Com, Inc. 2,400 28
Motorola, Inc. 55,800 3,746
Northern Telecom Limited 24,000 876
Scientific-Atlanta, Inc. 7,300 161
--------
Total 13,487
--------
TOBACCO (1.8%)
American Brands, Inc. 17,900 712
Philip Morris Companies, Inc. 80,000 5,950
UST Incorporated 18,500 550
--------
Total 7,212
--------
TRANSPORTATION-MISC. (0.0%)
Pittston Services Group 3,900 94
--------
TRUCKING-SHIPPING (0.2%)
Consolidated Freightways, Inc. 4,100 91
*Federal Express Corp. 5,300 322
Roadway Services, Inc. 3,700 175
Ryder System, Inc. 7,500 179
Yellow Corp. 2,600 47
--------
Total 814
--------
UTILITY-ELECTRIC (3.6%)
American Electric Power Co. Inc. 17,600 618
Baltimore Gas & Electric Company 14,000 350
Carolina Power & Light Company 14,800 448
Central & South West Corporation 18,100 475
Cinergy Corporation 14,717 386
Consolidated Edison Co. of New
York 22,300 658
Detroit Edison Company 13,700 404
Dominion Resources Inc. 16,400 599
Duke Power Company 19,400 805
Entergy Corporation 21,600 521
</TABLE>
54
<PAGE> 58
NORTHWESTERN MUTUAL SERIES FUND, INC.
INDEX 500 STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
UTILITY-ELECTRIC (CONTINUED)
FPL Group, Inc. 17,600 $ 680
General Public Utilities 10,900 324
Houston Industries Incorporated 12,400 522
Niagara Mohawk Power Corporation 13,700 202
Northern States Power Company 6,400 295
Ohio Edison Company 14,500 328
PECO Energy Company 21,000 580
Pacific Enterprises 7,800 191
Pacific Gas & Electric Company 40,700 1,180
PacifiCorp 26,900 504
Public Service Enterprise Group,
Inc. 23,200 644
SCEcorp 42,400 726
The Southern Company 63,000 1,410
Texas Utilities Company 21,400 736
Unicom Corp. 20,300 540
Union Electric Company 9,700 361
--------
Total 14,487
--------
UTILITY-GAS (0.6%)
*Columbia Gas System Inc. 4,800 152
Consolidated Natural Gas Company 8,800 332
Enron Corp 23,800 836
ENSERCH Corporation 6,400 110
Nicor Inc. 4,800 129
Noram Energy Corporation 11,700 76
ONEOK, Inc. 2,600 56
Panhandle Eastern Corporation 14,000 344
Peoples Energy Corporation 3,300 85
Williams Companies Inc. 9,600 335
--------
Total 2,455
--------
UTILITY-TELEPHONE (5.6%)
ALLTEL Corp. 17,900 454
*Airtouch Communications 46,800 1,334
Ameritech Corporation 52,400 2,306
<CAPTION>
MARKET
SHARES/ VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
UTILITY-TELEPHONE (CONTINUED)
Bell Atlantic Corporation 41,300 $ 2,313
Bellsouth Corporation 47,000 2,985
GTE Corporation 91,900 3,136
MCI Communications Corporation 64,400 1,417
NYNEX Corp. 40,300 1,622
Pacific Telesis Group 40,200 1,075
SBC Communications Incorporated 57,600 2,743
Sprint Corporation 33,000 1,110
U S West Inc. 44,600 1,856
--------
Total 22,351
--------
Total Common Stock 378,992
--------
PREFERRED STOCK (0.00%)
DIVERSIFIED (0.00%)
Teledyne, Inc. $ 102 $ 1
--------
Total Preferred Stock 1
--------
MONEY MARKET INVESTMENTS (5.3%)
FEDERAL GOVERNMENT & AGENCIES (0.8%)
U.S. Treasury, 5.65%, 7/6/95 $1,600,000 $ 1,599
+U.S. Treasury, 5.4%, 12/21/95 1,600,000 1,556
--------
Total 3,155
--------
FINANCIAL SERVICES (2.0%)
Weyerhaeuser Mortgage Company,
5.96%, 7/24/95 8,000,000 7,970
--------
FOODS (2.5%)
Cargill Incorporated, 6.1%, 7/3/95 3,900,000 3,899
H.J. Heinz Company, 5.86%, 7/13/95 6,000,000 5,988
--------
Total 9,887
--------
Total Money Market Investments 21,012
--------
Total Investments $400,005
========
</TABLE>
* Non-Income Producing
+ Partially held by the custodian in a segregated account as collateral for open
financial futures positions. Information regarding open futures contracts as
of June 30, 1995 is summarized below:
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF OF CONTRACTS EXPIRATION (DEPRECIATION)
ISSUER CONTRACTS (000'S) DATE (000'S)
-------------------- --------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
S&P 500 Stock Index 68 $ 18,603 September 1995 $807
S&P 500 Stock Index 8 2,205 December 1995 (11)
------------ ------
Total $ 20,808 $796
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
55
<PAGE> 59
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- -------
<S> <C> <C>
COMMON STOCK (91.7%)
AEROSPACE (1.0%)
The Boeing Company 10,000 $ 626
-------
AIRLINES (0.4%)
*AMR Corporation 3,600 269
-------
AUTO & TRUCKS (0.9%)
Chrysler Corporation 11,000 527
-------
AUTO RELATED (2.2%)
Eaton Corporation 13,900 808
Magna International Inc. 12,200 538
-------
Total 1,346
-------
BANKS (4.4%)
Chase Manhattan Corporation 5,700 268
Citicorp 13,200 764
First Interstate Bancorp 8,800 706
First Union Corporation 7,900 357
Mellon Bank Corporation 13,950 581
-------
Total 2,676
-------
BEVERAGES (2.4%)
The Coca-Cola Company 8,600 548
Pepsico Inc. 19,700 899
-------
Total 1,447
-------
CHEMICALS (3.3%)
Air Products & Chemicals, Inc. 13,700 764
E.I. Du Pont Du Nemours & Co. 10,150 698
Ecolab, Inc. 1,000 24
PPG Industries Inc. 13,100 563
-------
Total 2,049
-------
CHEMICALS-SPECIALITY (0.7%)
Avery Dennison Corp. 11,100 444
-------
CONTAINERS (1.2%)
*Crown Cork & Seal Company, Inc. 14,100 707
-------
DIVERSIFIED (0.8%)
Tenneco Inc. 10,100 465
-------
DRUGS (3.0%)
*Forest Laboratories Inc. 15,200 674
Merck & Co., Inc. 15,000 735
Pfizer Inc. 5,000 462
-------
Total 1,871
-------
ELECTRICAL EQUIPMENT (4.3%)
Emerson Electric Co. 15,000 1,072
General Electric Company 14,300 806
W.W. Grainger, Inc. 12,600 740
-------
Total 2,618
-------
ELECTRONICS (4.0%)
Hewlett-Packard Company 14,000 1,043
Intel Corp. 11,600 734
Molex Inc. 18,525 676
-------
Total 2,453
-------
ENVIRONMENTAL CONTROL (1.6%)
Browning-Ferris Industries Inc. 27,700 1,000
-------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- -------
<S> <C> <C>
FINANCIAL SERVICES (2.5%)
Dean Witter, Discover & Co. 16,700 $ 785
Franklin Resources 7,400 329
PMI Group Inc. 10,000 434
-------
Total 1,548
-------
FOOD SERVICE/LODGING (2.0%)
*Harrah's Entertainment 14,900 581
McDonald's Corporation 16,600 649
-------
Total 1,230
-------
FOODS (5.0%)
CPC International Corp. 6,700 414
Campbell Soup Company 13,400 657
Dean Foods Co. 20,600 577
General Mills, Inc. 9,700 498
Hormel Co. 12,000 314
Kellogg Company 8,500 607
-------
Total 3,067
-------
HOSPITAL SUPPLIES (5.2%)
Columbia/HCA Healthcare Corporation 19,700 852
Johnson & Johnson 12,400 839
Manor Care, Inc. 29,000 845
United Healthcare Corporation 15,500 641
-------
Total 3,177
-------
HOUSEHOLD FURNITURE (2.2%)
Newell Co. 34,000 833
Rubbermaid, Inc. 5,200 144
The Stanley Works 10,300 390
-------
Total 1,367
-------
INSURANCE (0.8%)
Aetna Life & Casualty Company 8,300 522
-------
LEISURE RELATED (3.6%)
CBS Inc. 10,800 724
Walt Disney Company 14,600 812
Mattel, Inc. 27,025 703
-------
Total 2,239
-------
MACHINERY (1.9%)
Deere & Company 3,400 291
Ingersoll-Rand Company 23,700 907
-------
Total 1,198
-------
NATURAL GAS-PIPELINES (0.2%)
El Paso Natural Gas Company 5,000 142
-------
OFFICE EQUIPMENT (3.5%)
International Business Machines
Corp. 10,500 1,008
Xerox Corporation 10,000 1,173
-------
Total 2,181
-------
OFFICE EQUIPMENT-SERVICES (3.7%)
Alco Standard Corporation 11,200 895
Automatic Data Processing, Inc. 7,300 459
*Microsoft Corporation 10,300 931
-------
Total 2,285
-------
</TABLE>
56
<PAGE> 60
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- -------
<S> <C> <C>
COMMON STOCK (CONTINUED)
OIL & GAS-DOMESTIC (2.6%)
Ashland Oil, Inc. 9,100 $ 320
Occidental Petroleum Corporation 21,800 499
Unocal Corp. 27,700 765
-------
Total 1,584
-------
OIL & GAS-INTERNATIONAL (3.8%)
Amoco Company 7,100 473
Exxon Corporation 8,200 579
Mobil Corporation 9,800 941
Texaco Inc. 5,400 354
-------
Total 2,347
-------
PAPER (1.5%)
International Paper Company 7,000 600
Union Camp Corporation 5,000 289
-------
Total 889
-------
PRINTING & PUBLISHING (2.5%)
American Greetings Corp. 17,400 511
McGraw-Hill, Inc. 6,100 463
Tribune Company 9,500 583
-------
Total 1,557
-------
RAILROADS (1.4%)
Burlington Northern Railroad 10,700 678
CSX Corporation 2,800 210
-------
Total 888
-------
REAL ESTATE INVESTMENT TRUST (0.3%)
Oasis Residential 7,400 161
-------
RETAIL-FOOD (1.0%)
Albertson's, Inc. 20,500 610
-------
RETAIL-GENERAL (6.9%)
Dayton Hudson Corporation 7,200 517
*Federated Department Stores 14,100 363
Home Depot, Inc. 18,900 768
*Officemax, Inc. 36,900 1,029
J.C. Penney Company, Inc. 13,100 629
*Toys "R" Us 13,000 380
Wal-Mart Stores, Inc. 20,200 540
-------
Total 4,226
<CAPTION>
MARKET
SHARES VALUE
/PAR (000'S)
---------- -------
<S> <C> <C>
RETAIL-GENERAL (CONTINUED)
-------
SOAPS & TOILETRIES (2.5%)
Colgate-Palmolive Company 12,200 $ 892
Gillette Company 14,600 652
-------
Total 1,544
-------
TELECOMMUNICATIONS (3.2%)
AT&T Corporation 17,600 935
MCI Communications Corporation 6,700 147
Motorola, Inc. 13,500 906
-------
Total 1,988
-------
UTILITY-ELECTRIC (2.6%)
Duke Power Company 16,500 685
FPL Group, Inc. 5,800 224
*Huaneng Power International 14,500 266
The Southern Company 17,900 401
-------
Total 1,576
-------
UTILITY-TELEPHONE (2.6%)
Ameritech Corporation 12,400 546
GTE Corporation 19,600 669
U S West Inc. 9,500 395
-------
Total 1,610
-------
Total Common Stock 56,434
-------
MONEY MARKET INVESTMENTS (8.3%)
FINANCIAL SERVICES (2.0%)
Xerox Credit Corporation, 5.96%,
7/24/95 $1,200,000 $ 1,195
-------
FOODS (1.3%)
Cargill Incorporated, 6.1%, 7/3/95 600,000 600
H.J. Heinz Company, 5.86%, 7/13/95 200,000 200
-------
Total 800
-------
RETAIL-GENERAL (1.0%)
Wal-Mart Stores, Inc., 5.97%,
7/5/95 600,000 600
-------
SOAPS & TOILETRIES (4.0%)
Colgate-Palmolive Company, 5.92%,
8/7/95 2,500,000 2,484
-------
Total Money Market Investments 5,079
-------
Total Investments $61,513
=======
</TABLE>
* Non-Income Producing
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
57
<PAGE> 61
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH AND INCOME STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
-------- --------
<S> <C> <C>
COMMON STOCK (98.2%)
AEROSPACE (2.5%)
Sundstrand Corp. 42,300 $ 2,527
--------
APPAREL, TEXTILES (0.3%)
*INTERCO Inc. 53,000 311
--------
AUTO & TRUCKS (2.1%)
General Motors Corporation 44,600 2,091
--------
AUTO RELATED (0.8%)
Cooper Tire & Rubber Company 31,900 777
--------
BANKS (6.2%)
BankAmerica Corporation 29,700 1,563
First Union Corporation 23,600 1,068
Firstar Corporation 31,300 1,052
Fleet Financial Group Inc. 28,600 1,062
NationsBank Corp. 26,600 1,426
--------
Total 6,171
--------
BEVERAGES (3.3%)
Anheuser-Busch Companies Inc. 21,700 1,234
The Coca-Cola Company 11,000 701
Pepsico Inc. 31,100 1,419
--------
Total 3,354
--------
CHEMICALS (2.7%)
E.I. Du Pont De Nemours & Co. 8,400 578
Freeport McMoRan Copper & Gold 45,019 929
Freeport McMoRan Incorporated 8,900 157
Union Carbide Corporation 31,000 1,035
--------
Total 2,699
--------
CHEMICALS-SPECIALTY (1.1%)
Wellman Inc. 38,900 1,065
--------
CONTAINERS (0.5%)
*Crown Cork & Seal Company, Inc. 9,600 481
--------
DIVERSIFIED (5.8%)
Allied Signal Inc. 45,700 2,034
*Coltec Industries, Inc. 70,500 1,216
ITT Corp. 21,900 2,573
--------
Total 5,823
--------
DRUGS (1.9%)
Eli Lily & Company 13,100 1,028
Warner-Lambert Company 9,600 829
--------
Total 1,857
--------
ELECTRICAL EQUIPMENT (2.8%)
General Electric Company 34,200 1,928
W.W. Grainger, Inc. 15,100 887
--------
Total 2,815
--------
ELECTRONICS (2.1%)
Harris Corporation 22,800 1,177
Tyco Laboratories, Inc. 18,000 972
--------
Total 2,149
--------
ENVIRONMENTAL CONTROL (1.5%)
Wheelabrator Technologies Inc. 97,500 1,499
--------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
-------- --------
<S> <C> <C>
FINANCIAL SERVICES (0.5%)
Dean Witter, Discover & Co. 10,400 $ 489
--------
FOODS (2.0%)
General Mills, Inc. 16,200 832
Kellogg Company 16,200 1,156
--------
Total 1,988
--------
HOSPITAL SUPPLIES (5.6%)
Bausch & Lomb Inc. 44,300 1,838
Columbia/HCA Healthcare Corp. 29,800 1,289
Healthcare Retirement Corp. 42,900 1,255
Humana, Inc. 72,600 1,280
--------
Total 5,662
--------
INSURANCE (3.8%)
AMBAC, Inc. 23,400 939
First Colony Corporation 68,200 1,637
Providian Corporation 34,300 1,243
--------
Total 3,819
--------
LEISURE RELATED (2.5%)
*Circus Circus Enterprises 34,700 1,223
International Game Technology 85,100 1,308
--------
Total 2,531
--------
MACHINERY (1.2%)
Cooper Industries, Inc. 31,400 1,240
--------
MEDIA (4.2%)
CBS Inc. 28,000 1,876
*Cox Communications Inc. 31,400 608
*Tele-Communications, Inc. 72,500 1,699
--------
Total 4,183
--------
METALS & MINING (2.0%)
Aluminum Co. of America 25,500 1,278
Phelps Dodge Corporation 12,200 720
--------
Total 1,998
--------
OFFICE EQUIPMENT (1.3%)
International Business Machines
Corp. 8,000 768
Quantum Corp. 22,500 515
--------
Total 1,283
--------
OFFICE EQUIPMENT-SERVICES (2.4%)
Adobe Systems Incorporated 27,400 1,589
*Novell, Inc. 43,100 859
--------
Total 2,448
--------
OIL & GAS-DOMESTIC (2.5%)
Anadarko Petroleum Corp. 15,300 660
Ashland Oil, Inc. 41,700 1,465
Sun Company, Inc. 15,200 416
--------
Total 2,541
--------
OIL & GAS-INTERNATIONAL (6.0%)
Exxon Corporation 15,800 1,116
Mobil Corporation 19,900 1,910
Royal Dutch Petroleum Co., ADR 16,000 1,950
Texaco Inc. 16,000 1,050
--------
Total 6,026
--------
</TABLE>
58
<PAGE> 62
NORTHWESTERN MUTUAL SERIES FUND, INC.
GROWTH AND INCOME STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
-------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
PROFESSIONAL SERVICES (1.8%)
Service Corporation International 55,900 $ 1,768
--------
RAILROADS (2.5%)
Canadian Pacific Limited 62,100 1,079
Union Pacific Corporation 26,600 1,473
--------
Total 2,552
--------
RETAIL-GENERAL (7.7%)
Melville Corporation 45,300 1,552
Nordstrom, Inc. 18,600 770
J.C. Penney Company, Inc. 27,700 1,330
*Symbol Technologies Inc. 34,600 1,328
TJX Companies, Inc. 73,300 971
Wal-Mart Stores, Inc. 66,000 1,766
--------
Total 7,717
--------
SAVINGS & LOAN (0.7%)
H.F. Ahmanson & Company 32,800 722
--------
SOAPS & TOILETRIES (2.8%)
Avon Products, Inc. 19,200 1,286
The Procter & Gamble Company 20,700 1,488
--------
Total 2,774
--------
TELECOMMUNICATIONS (4.6%)
AT&T Corporation 32,200 1,711
*Bay Networks 49,100 2,032
Motorola, Inc. 13,500 906
--------
Total 4,649
--------
TOBACCO (2.1%)
Philip Morris Companies, Inc. 27,700 2,060
--------
<CAPTION>
MARKET
SHARES VALUE
/PAR (000'S)
-------- --------
<S> <C> <C>
UTILITY-ELECTRIC (3.3%)
Allegheny Power System, Inc. 30,900 $ 726
Dominion Resources Inc. 18,100 661
Public Service Co. of Colorado 25,400 826
Western Resources 33,900 1,047
--------
Total 3,260
--------
UTILITY-TELEPHONE (5.1%)
Bellsouth Corporation 16,300 1,035
MCI Communications Corporation 93,000 2,046
Pacific Telesis Group 37,100 992
U S West Inc. 24,500 1,020
--------
Total 5,093
--------
Total Common Stock 98,422
--------
MONEY MARKET INVESTMENTS (1.8%)
FINANCIAL SERVICES (0.7%)
Xerox Credit Corporation,
5.96%, 7/24/95 $700,000 $ 697
--------
FOODS (0.3%)
Cargill Incorporated,
6.1%, 7/3/95 300,000 300
--------
PROFESSIONAL SERVICES (0.8%)
PHH Corp., 5.96%, 7/18/95 800,000 798
--------
Total Money Market Investments 1,795
--------
Total Investments $100,217
========
</TABLE>
* Non-Income Producing
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
59
<PAGE> 63
NORTHWESTERN MUTUAL SERIES FUND, INC.
AGGRESSIVE GROWTH STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (92.1%)
AIRLINES (1.1%)
*ValuJet Airlines 147,500 $ 4,849
--------
AUTO & TRUCKS (0.3%)
*Dorsey Trailers, Inc. 167,900 1,343
PST Vans Inc. 12,000 76
--------
Total 1,419
--------
AUTO RELATED (4.0%)
*Automotive Industries Holding 146,600 3,976
*Custom Chrome Inc. 180,800 3,616
*O'Reilly Automotive, Inc. 144,800 4,072
A.O. Smith Corp. 106,200 2,496
*Thompson PBE, Inc. 208,700 3,443
--------
Total 17,603
--------
BANKS (0.8%)
*Leader Financial Corp. 121,500 3,448
--------
CHEMICALS (1.2%)
A. Schulman Inc. 183,850 5,286
--------
CONSUMER PRODUCTS (1.8%)
*Blythe Industries, Inc. 180,600 7,698
--------
DIVERSIFIED (0.4%)
Worthington Industries, Inc. 84,000 1,717
--------
DRUGS (1.6%)
Cardinal Health Inc. 150,312 7,102
--------
ELECTRICAL EQUIPMENT (2.0%)
*CIDCO Inc. 136,200 4,273
Methode Electronics Inc. 232,000 4,524
--------
Total 8,797
--------
ELECTRONICS (7.4%)
*ADC Telecommunication 198,300 7,089
*Altera Corporation 160,600 6,946
*Applied Materials Inc. 59,400 5,145
*Electroglas, Inc. 68,500 3,922
*In Focus Systems Inc. 156,500 4,225
Molex Inc. 141,106 5,150
--------
Total 32,477
--------
ENVIRONMENTAL CONTROL (1.3%)
*TETRA Technologies Inc. 316,251 5,613
--------
FINANCIAL SERVICES (0.6%)
Money Store, Inc. 77,200 2,765
--------
FOOD SERVICE/LODGING (1.3%)
*Hospitality Franchise Systems 167,500 5,800
--------
HOSPITAL SUPPLIES (14.7%)
APPS Dental Inc. 65,500 1,376
*American Medical Response Inc. 167,800 4,698
Columbia/HCA Healthcare Corp. 118,200 5,112
*Gulf South Medical Supply, Inc. 280,000 6,720
*Heart Technology 178,500 3,458
*Inbrand Corporation 300,650 4,886
*Medaphis Corporation 50,000 1,088
*MediSense Inc. 252,000 4,883
*Patterson Dental Company 226,250 5,373
*Quorum Health Group, Inc. 216,300 4,380
*Respironics Inc. 265,800 3,788
*Sybron, Inc. 132,100 5,267
*Technol Medical Products Inc. 196,900 4,332
United Healthcare Corp. 61,700 2,553
*Ventritex, Inc. 138,400 2,336
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
HOSPITAL SUPPLIES (CONTINUED)
*Vivra Incorporated 162,200 $ 4,400
--------
Total 64,650
--------
HOUSEHOLD FURNITURE (1.9%)
*Department 56, Inc. 152,200 5,822
Juno Lighting Inc. 167,200 2,675
--------
Total 8,497
--------
INSURANCE (1.9%)
Capital Guaranty Corporation 160,000 2,880
PMI Group Inc. 127,600 5,535
--------
Total 8,415
--------
LEISURE RELATED (4.0%)
*Broderbund Software Inc. 76,100 4,851
The Marcus Corporation 82,700 2,502
*Scientific Games Holding Corp. 236,900 6,574
*Station Casinos, Inc. 217,300 3,748
--------
Total 17,675
--------
OFFICE EQUIPMENT (7.3%)
*Firefox Communications, Inc. 55,000 1,416
*Norand Corporation 90,700 3,696
*Nu-Kote Holdings Inc. 188,600 5,988
*Peak Technologies 225,800 6,209
*Tivoli Systems Inc. 42,000 1,336
*Viking Office Products Inc. 175,200 6,417
*Zebra Technologies 131,700 7,013
--------
Total 32,075
--------
OFFICE EQUIPMENT & SERVICES (12.4%)
*American Management System Inc. 255,650 6,423
Danka Business Systems 194,900 4,714
First Data Corporation 69,400 3,947
First Financial Management Corp. 69,800 5,968
*Fiserv 175,875 4,946
HBO & Co. 100,000 5,450
*Hyperion Software 131,500 5,950
Medic Computer Systems, Inc. 61,400 2,364
*PeopleSoft, Inc. 93,700 5,083
*SPS Transaction Services, Inc. 176,700 6,118
*TESSCO Technologies Inc. 190,700 3,456
--------
Total 54,419
--------
OIL & GAS PROGRAMS (0.9%)
Parker and Parsley Petroleum Co. 199,400 3,913
--------
OIL FIELD SERVICES (2.1%)
*Offshore Logistics, Inc. 141,725 1,984
Production Operators Corp. 144,300 4,545
Tosco Corp. 90,000 2,869
--------
Total 9,398
--------
PAPER (0.8%)
Wausau Paper Mills Company 159,655 3,642
--------
PROFESSIONAL SERVICES (6.1%)
*CUC International Inc. 152,900 6,422
Cintas Corporation 134,300 4,768
*Interim Service 116,100 2,903
Kelly Services Incorporated 132,200 3,404
Paychex Incorporated 131,330 4,761
*Robert Half International Inc. 156,600 4,013
--------
Total 26,271
--------
RAILROADS (1.1%)
*Wisconsin Central Transportation 102,400 5,018
--------
</TABLE>
60
<PAGE> 64
NORTHWESTERN MUTUAL SERIES FUND, INC.
AGGRESSIVE GROWTH STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
---------- --------
<S> <C> <C>
COMMON STOCK (CONTINUED)
RETAIL-APPAREL (1.5%)
The Talbots, Inc. 163,300 $ 6,491
--------
RETAIL-GENERAL (4.9%)
*Corporate Express, Inc. 203,400 4,348
Fastenal Co. 134,900 3,684
Global Direct Mail Corp. 46,000 909
*Micro Warehouse Inc. 72,900 3,353
*Officemax, Inc. 210,800 5,876
*Tractor Supply Company 171,200 3,296
--------
Total 21,466
--------
TELECOMMUNICATIONS (5.5%)
*AirTouch Communications 182,600 5,204
*LCI International 145,600 4,459
LIN Television Corp. 91,500 3,077
*Tellabs Inc. 155,400 7,479
*Transaction Systems Architects 87,100 2,243
*Uunet Technologies, Inc. 47,000 1,293
--------
Total 23,755
--------
TRUCKING-SHIPPING (2.4%)
*Fritz Companies, Inc. 109,000 6,397
*Heartland Express Incorporated 154,432 3,938
--------
Total 10,335
--------
<CAPTION>
MARKET
SHARES/ VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
UTILITY-ELECTRIC (0.8%)
*Huaneng Power International, ADS 194,000 $ 3,565
--------
Total Common Stock 404,159
--------
MONEY MARKET INVESTMENTS (7.9%)
FINANCIAL SERVICES (4.0%)
Weyerhaeuser Mortgage Company,
5.93%, 7/10/95 $9,000,000 $ 8,986
Weyerhaeuser Mortgage Company,
5.96%, 7/20/95 8,700,000 8,673
--------
Total 17,659
--------
FOODS (0.2%)
Cargill Incorporated,
6.1%, 7/3/95 700,000 700
--------
SOAPS & TOILETRIES (1.5%)
Colgate-Palmolive Co.,
5.92%, 8/7/95 6,500,000 6,460
--------
TOBACCO (2.2%)
Philip Morris Companies, Inc.,
5.94%, 7/14/95 9,800,000 9,779
--------
Total Money Market Investments 34,598
--------
Total Investments $438,757
========
</TABLE>
* Non-Income Producing
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
61
<PAGE> 65
NORTHWESTERN MUTUAL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
COUNTRY SHARES (000'S)
------- ----------- --------
<S> <C> <C> <C>
COMMON STOCKS (87.8%)
AEROSPACE (1.1%)
British Aerospace U.K. 374,197 $ 3,352
--------
APPLIANCES & HOUSEHOLD DURABLES (1.1%)
Sony Corporation Jpn. 71,000 3,409
--------
AUTOMOBILES (2.1%)
Renault SA Fr. 65,000 2,037
Volvo Aktieboleget B Free Swe. 240,000 4,565
--------
Total 6,602
--------
BANKING & CREDIT (15.1%)
Argentina Corp. Bancaris De
Espana, ADR Sp. 195,000 3,583
Australia & New Zealand Bank
Group Austrl. 926,097 3,291
Banco De Andulucia Sp. 30,000 3,893
#++Banque National De Paris,
ADR Fr. 92,000 4,438
Barclay's Bank, PLC U.K. 311,016 3,343
BCO Bilboa Vizcaya Sp. 162,500 4,691
BCO Portiques De Invest Port. 71,350 1,247
Canadian Imperial Bank of
Commerce Can. 177,000 4,253
Deutsche Bank of Commerce Ger. 88,000 4,276
HSBC Holdings H.K. 275,365 3,532
National Bank of Canada
Montreal Can. 360,000 2,949
Panin Bank Idr. 725,000 690
Stadshypotek AB "A" Swe. 120,000 1,780
Svenska Hanelsbanken S A Swe. 372,000 5,543
TSB Group, PLC U.K. 46,500 179
--------
Total 47,688
--------
BROADCAST ADVERTISING (0.5%)
Vereniging Nederland Neth. 13,200 1,581
--------
BUILDING MATERIALS AND COMPONENTS (1.3%)
Pioneer International Ltd. Austrl. 1,700,000 4,229
--------
BUSINESS & PUBLIC SERVICE (4.0%)
Esstelte AB Series A Swe. 244,900 3,061
SGS Holdings Swtz. 2,770 4,811
Welsh Water PLC U.K. 446,000 4,715
--------
Total 12,587
--------
CHEMICALS (4.3%)
Bayer AG Ger. 16,700 4,154
European Vinyls Corp. EVC
International Neth. 36,525 1,703
Rhone Poulenc SA Series A Fr. 165,000 3,718
Solvay Et Cie A NPV Bel. 7,300 4,004
--------
Total 13,579
--------
ELECTRICAL & ELECTRONICS (3.0%)
BBXC Brown Boveri Series A Swtz. 4,730 4,896
Hitachi Ltd. Jpn. 450,000 4,487
--------
Total 9,383
--------
ENERGY SOURCES (3.7%)
Repsol SA Sp. 122,000 3,839
Sega Petrolium Series "A" Nor. 260,000 3,692
<CAPTION>
MARKET
VALUE
COUNTRY SHARES (000'S)
------- ----------- --------
<S> <C> <C> <C>
ENERGY SOURCES (CONTINUED)
Societe Nationale Elf
Aquitaine Fr. 53,928 $ 3,985
--------
Total 11,516
--------
FINANCIAL SERVICES (2.7%)
Capital Portugal Fund Port. 16,000 1,564
India Fund Series "B" U.K. 1,256,515 2,369
JF Indonesia Fund Inc. H.K. 456,600 584
Korea International Trust Kor. 52 2,626
Thailand Int'l. Fund T.H. 45 1,474
--------
Total 8,617
--------
FOOD & HOUSEHOLD PRODUCTS (3.5%)
Albert Fisher Group U.K. 4,884,524 3,575
Cafe De Coral Holdings, Ltd. H.K. 4,301,000 1,073
Hillsdown Holdings U.K. 1,511,206 4,352
Vitro SA NPV Mex. 668,400 1,903
--------
Total 10,903
--------
FOREST PRODUCTS & PAPER (4.3%)
Barito Pacific Timber I.D. 937,000 1,346
Carter Holt Harvey Ltd. N.Z. 1,995,957 4,884
Metsa-Serla OY "B" Fin. 55,500 2,471
Stora Tora Kopparberg Bergst
B Free Swed. 350,000 4,735
--------
Total 13,436
--------
HEALTH & PERSONAL CARE (2.5%)
Astra AB Series A Free Swed. 157,000 4,841
Hafslund Nycomed "A" Norw. 127,500 2,990
--------
Total 7,831
--------
INSURANCE (5.7%)
Aegon NV Neth. 143,337 4,960
Int'l Nederlanden Group Neth. 91,000 5,035
London Insurance Group Can. 152,000 2,836
Swiss Reinsurance Group Swtz. 4,000 5,026
--------
Total 17,857
--------
MACHINERY & ENGINEERING (1.2%)
#+VA Technologies AG Bearer Aus. 30,000 3,760
--------
MERCHANDISING (3.1%)
Burton Group U.K. 1,500,000 1,981
Kon Bijenkorf Beheer Neth. 44,904 3,224
Kwik Save Group U.K. 455,000 4,670
--------
Total 9,875
--------
METALS & MINING (2.5%)
Elkem A S Oslo ord A Free Nor. 192,000 2,679
*Inmet Mining Ltd. Can. 192,500 1,384
Pechiney Cert. D'Invest Fr. 9,000 519
*Union Miniere, NPV Bel. 50,500 3,294
--------
Total 7,876
--------
MULTI-INDUSTRY (6.0%)
Amer Group "A" Fin. 175,000 3,186
BTR Nylex Ltd. Aus. 1,200,000 2,294
Hutchinson Whampoa H.K. 798,000 3,867
Jardine Matheson Holdings H.K. 382,763 2,813
Jardine Strategic Holdings H.K. 2,815,000 3,026
Swire Pacific Class "A" H.K. 472,500 3,603
</TABLE>
62
<PAGE> 66
NORTHWESTERN MUTUAL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
COUNTRY SHARES (000'S)
------- ----------- --------
<S> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MULTI-INDUSTRY (CONTINUED)
Waste Management PLC. ADR. U.K. 21,400 $ 203
--------
Total 18,992
--------
TELECOMMUNICATIONS (7.5%)
Alcatel Alstrohm DG Fr. 32,250 2,904
CIA De Telefonos Chile SA
ADR Chil. 36,500 2,970
Nacional Financiera CNV Mx. 92,100 2,855
Phillipine Long Distance
Telephone Phil. 53,500 3,838
Stet Di Risp Non-Conv. Italy 2,065,000 4,592
Telebras ADR Braz. 77,500 2,616
Telphonica De Espana Sp. 304,000 3,917
--------
Total 23,692
--------
TRANSPORTATION (0.6%)
Singapore Airlines Ltd. Fgn. Sing. 205,000 1,892
--------
TRANSPORTATION-RAILROAD (0.5%)
Brambles Ind. Ltd. Aus. 175,000 1,659
--------
UTILITIES-ELECTRIC (10.3%)
British Gas U.K. 987,000 4,546
*CEZ Ceske Energeticke
Zavody Chez. 45,760 1,664
Electricidad De Caracas Venz. 2,527,258 2,640
Endesa National De Electric Sp. 69,000 3,408
Evn Energieversorgung Aus. 26,000 3,639
Hong Kong Electric H.K. 990,000 3,365
Iberdrola SA Spn. 667,500 5,028
South Wales Electricity U.K. 330,000 3,659
<CAPTION>
MARKET
SHARES/ VALUE
COUNTY PAR (000'S)
------- ----------- --------
<S> <C> <C> <C>
UTILITIES-ELECTRIC (CONTINUED)
Veba AG Ger. 12,000 $ 4,716
--------
Total 32,665
--------
WHOLESALE & INTERNATIONAL TRADE (1.2%)
Brierley Investments Ltd. N.Z. 5,041,091 3,808
--------
Total Common Stock Investments 276,789
--------
BONDS (1.3%)
FINANCIAL SERVICES (0.5%)
PIV Financial Inv. Cayman C.J. $ 2,000,000 $ 1,610
--------
TELECOMMUNICATIONS (0.8%)
Comp De Inever Telecom K.S. 47,000 2,350
--------
Total Bond Investments 3,960
--------
MONEY MARKET INVESTMENTS (10.9%)
FINANCIAL SERVICES (2.5%)
American Express, 5.5%,
7/3/95 U.S. $ 7,963,000 $ 7,963
--------
FEDERAL GOVERNMENT & AGENCIES (0.9%)
U.S. Treasury Notes, 8.875%,
2/15/96 U.S. 2,850,000 2,902
--------
INSURANCE (5.0%)
Prudential, 6.5%, 7/3/95 U.S. 15,786,000 15,786
--------
UTILITIES-ELECTRIC (2.5%)
General Electric Credit
Corp., 5%, 7/3/95 U.S. 7,964,000 7,964
--------
Total Money Market Investments 34,615
--------
Total Investments $315,364
========
</TABLE>
* Non-Income Producing
+ Unregistered security, originally purchased May 31, 1994, total cost
$2,738,708.
++ Unregistered security, originally purchased November 16, 1993, total cost
$4,339,196.
# The Portfolio has no right to require registration of unregistered
securities.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
63
<PAGE> 67
NORTHWESTERN MUTUAL SERIES FUND, INC.
SELECT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
BONDS (84.7%)
AIRLINES (1.4%)
Delta Air Lines, Inc., 9 3/4%,
5/26/03 $ 546,000 $ 607
Delta Air Lines, Inc., 9 3/4%,
6/1/03 1,605,000 1,786
--------
Total 2,393
--------
AUTO RELATED (0.6%)
Hertz Corp., 9.04%, 6/14/00 900,000 989
--------
AUTOS & TRUCKS (0.8%)
General Motors Corporation, 8.8%,
3/1/21 1,250,000 1,424
--------
BANKS (1.1%)
Natwest Capital Corporation,
12 1/8%, 11/15/02 1,700,000 1,907
--------
BEVERAGES (3.1%)
Coca-Cola Enterprises Inc., 8%,
1/4/05 5,000,000 5,522
--------
CHEMICALS (1.2%)
Dow Capital B.V., 8 1/2%, 6/8/10 1,800,000 2,097
--------
CMO & LOAN-BACKED CERTIFICATES (17.2%)
CIT RV Owner Trust, 6 1/4%,
1/15/11 2,500,000 2,489
Federal Home Loan Mortgage Corp.,
7 1/4%, 4/15/18 2,425,000 2,447
Federal Home Loan Mortgage Corp.,
7%, 3/15/07 1,875,000 1,877
Federal Home Loan Mortgage Corp.,
6%, 7/15/07 3,900,000 3,737
Federal National Mortgage Assoc.,
6 1/4%, 7/25/07 3,850,000 3,772
Federal National Mortgage Assoc.,
6 3/4%, 12/25/23 3,500,000 3,254
Ford Motor Credit Grantor Trust,
7.3%, 10/15/99 2,418,742 2,457
Premier Auto Trust, 6.65%, 4/2/98 3,300,000 3,327
Rural Housing Trust, 6.33%, 4/1/26 2,867,611 2,781
Security Capital Industrial Trust,
7.3%, 5/15/01 2,000,000 2,018
World Omni Grantor Trust, 7.95%,
1/25/01 2,000,000 2,049
--------
Total 30,208
--------
DIVERSIFIED (0.8%)
Tenneco Inc., 10%, 8/1/98 1,250,000 1,371
--------
FEDERAL GOVERNMENT AND AGENCIES (26.4%)
Federal National Mortgage Assoc.,
7%, 12/1/23 5,654,245 5,567
Government National Mortgage
Assoc., 8 1/2%, 3/15/23 13,904 14
Government National Mortgage
Assoc., 7%, 5/15/23 540,230 532
Government National Mortgage
Assoc., 7 1/2%, 2/15/24 2,009,678 2,020
Government National Mortgage
Assoc., 7%, 5/15/23 3,267,710 3,218
Government National Mortgage
Assoc., 8 1/2%, 9/15/24 572,395 594
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
FEDERAL GOVERNMENT AND AGENCIES (CONTINUED)
Government National Mortgage
Assoc., 8 1/2%, 6/15/23 $ 402,564 $ 418
Government National Mortgage
Assoc., 8 1/2%, 7/15/24 149,840 156
Government National Mortgage
Assoc., 8 1/2%, 2/15/25 232,103 241
Government National Mortgage
Assoc., 7 1/2%, 1/15/24 971,557 976
Government National Mortgage
Assoc., 7 1/2%, 1/15/24 1,028,639 1,034
Government National Mortgage
Assoc., 8 1/2%, 11/15/24 373,464 388
Government National Mortgage
Assoc., 8 1/2%, 11/15/24 395,233 410
Government National Mortgage
Assoc., 8 1/2%, 8/15/24 459,250 477
Government National Mortgage
Assoc., 8 1/2%, 8/15/24 360,244 374
Government National Mortgage
Assoc., 7 1/2%, 6/15/24 1,780,173 1,789
Government National Mortgage
Assoc., 8 1/2%, 2/15/25 178,825 186
Government National Mortgage
Assoc., 8 1/2%, 9/15/24 389,156 404
Government National Mortgage
Assoc., 8 1/2%, 11/15/24 371,864 386
Government National Mortgage
Assoc., 8 1/2%, 4/15/21 330,833 343
Government National Mortgage
Assoc., 8 1/2%, 9/15/21 274,239 285
Government National Mortgage
Assoc., 8 1/2%, 3/15/22 350,448 364
Government National Mortgage
Assoc., 7%, 6/15/23 2,932,682 2,888
U.S. Treasury, 7 1/8%, 2/15/23 8,200,000 8,656
U.S. Treasury, 6 1/2%, 8/15/23 11,550,000 10,922
U.S. Treasury, 7 1/2%, 11/15/24 1,500,000 1,661
U.S. Treasury, 7 1/8%, 2/15/25 2,000,000 2,256
--------
Total 46,559
--------
FINANCE COMPANIES (5.6%)
Associates Corp. of North America,
6 7/8%, 1/15/97 2,200,000 2,221
Associates Corp. of North America,
5 1/4%, 9/1/98 2,000,000 1,940
Avco Financial Services Inc.,
5 7/8%, 10/15/97 2,200,000 2,184
Beneficial Corp., 6.86%, 11/19/97 2,200,000 2,226
Ford Motor Credit Company, 6 1/4%,
2/26/98 1,200,000 1,198
--------
Total 9,769
--------
FOODS (2.1%)
Nabisco Inc., 8%, 1/15/00 1,500,000 1,577
RJR Nabisco Inc., 8 5/8%, 12/1/02 2,000,000 2,102
--------
Total 3,679
--------
FOREIGN GOVERNMENT BONDS (1.2%)
Province of Manitoba, 7 3/4%,
7/17/16 2,000,000 2,102
--------
</TABLE>
64
<PAGE> 68
NORTHWESTERN MUTUAL SERIES FUND, INC.
SELECT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
BONDS (CONTINUED)
LEISURE RELATED (1.3%)
Time Warner Entertainment Inc.,
8 7/8%, 10/1/12 $2,000,000 $ 2,130
Time Warner Entertainment Inc.,
7 1/4%, 9/1/08 200,000 191
--------
Total 2,321
--------
MEDIA (2.2%)
Tele-Communications, Inc., 7 3/8%,
2/15/00 2,000,000 2,010
Tele-Communications, Inc., 7 7/8%,
8/1/13 2,000,000 1,850
--------
Total 3,860
--------
OFFICE EQUIPMENT (1.7%)
International Business Machines
Corp., 6 3/8%, 11/1/97 3,000,000 3,014
--------
PRINTING & PUBLISHING (2.0%)
News America Holdings Inc.,
7 1/2%, 3/1/00 3,500,000 3,571
--------
TOBACCO (1.7%)
Philip Morris Companies, Inc., 9%,
5/15/98 1,750,000 1,864
Philip Morris Companies, Inc.,
9 1/4%, 2/15/00 1,000,000 1,103
--------
Total 2,967
--------
UTILITY-ELECTRIC (14.3%)
Detroit Edison Company, 5.41%,
5/1/97 4,000,000 3,935
Long Island Lighting Co., 7%,
3/1/04 3,250,000 2,900
Pacific Gas & Electric Co.,
7 1/4%, 3/1/26 3,500,000 3,347
Pacific Gas & Electric Co.,
5 3/8%, 8/1/98 2,600,000 2,522
Pennsylvania Power & Light Co.,
5 1/2%, 4/1/98 3,000,000 2,927
PECO Energy Company, 7 1/2%,
1/15/99 1,500,000 1,539
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
UTILITY-ELECTRIC (CONTINUED)
PECO Energy Company, 7 3/4%,
3/1/23 $1,150,000 $ 1,143
Public Service Electric & Gas Co.,
6 7/8%, 1/1/03 2,250,000 2,259
Texas Utilities Electric Co.,
7 7/8%, 3/1/23 2,250,000 2,265
UNICOM Corp., 6 1/2%, 4/15/00 2,300,000 2,279
--------
Total 25,116
--------
Total Bonds 148,869
--------
MONEY MARKET INVESTMENTS (15.3%)
CHEMICALS (1.1%)
W.R. Grace & Co., 6 1/2%, 12/1/95 $2,000,000 $ 2,002
--------
FINANCIAL SERVICES (8.6%)
American Express Company, 5.97%,
7/26/95 5,000,000 4,979
American General Finance Corp.,
8 7/8%, 3/15/96 2,300,000 2,343
American Telephone & Telegraph
Co., 5.92%, 7/14/95 5,000,000 4,989
Transamerica Financial Corp.,
8.55%, 6/15/96 2,500,000 2,542
--------
Total 14,853
--------
FOODS (1.7%)
Cargill Incorporated, 6.1%, 7/3/95 3,100,000 3,099
--------
SOAPS & TOILETRIES (3.4%)
Colgate-Palmolive Co., 5.89%,
7/11/95 6,000,000 5,990
--------
TELECOMMUNICATIONS (0.5%)
U S West Capital Funding Inc.,
8.99%, 11/14/95 900,000 910
--------
Total Money Market Investments 26,854
--------
Total Investments $175,723
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
65
<PAGE> 69
NORTHWESTERN MUTUAL SERIES FUND, INC.
HIGH YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- -------
<S> <C> <C>
BONDS (96.3%)
APPAREL, TEXTILES (5.9%)
Fieldcrest Cannon, Inc., 11 1/4%,
6/15/04 $ 500,000 $ 524
Guess, Inc., 9 1/2%, 8/15/03 500,000 500
Ithaca Industries, 11 1/8%,
12/15/02 700,000 667
Tultex Corp., 10 5/8, 3/15/05 1,000,000 1,006
-------
Total 2,697
-------
AUTO RELATED (4.4%)
Exide Corporation, 10%, 4/15/05 500,000 514
Foamex L.P., 11 1/4, 10/1/02 1,000,000 985
JPS Automotive Products, 11 1/8,
6/15/01 500,000 489
-------
Total 1,988
-------
BANKS (2.4%)
First Nationwide Holdings, 12 1/4%,
5/15/01 1,000,000 1,070
-------
BUILDING & CONSTRUCTION (2.3%)
Primeco Inc., 12 3/4%, 3/1/05 1,000,000 1,020
-------
CABLE (2.2%)
Adelphia Communications, 9 7/8%,
3/1/05 500,000 440
Groupe Videotron Ltd., 10 5/8%,
2/15/05 500,000 528
-------
Total 968
-------
CHEMICALS (1.1%)
Terra Industries, 10 1/2%, 6/15/05 500,000 505
-------
CONTAINERS (1.1%)
Anchor Glass Container Corp.,
10 1/4%, 6/30/02 500,000 500
-------
DRUGS (1.2%)
Thrifty Payless Holdings, 11 3/4%,
4/15/03 500,000 530
-------
ENVIRONMENTAL CONTROL (1.9%)
Envirotest Systems Corporation,
9 1/8%, 3/15/01 1,000,000 837
-------
FOODS (4.9%)
Beatrice Foods, Inc., 12%, 12/1/01 800,000 754
Curtice-Burns Foods Inc., 12 1/4%,
2/1/05 500,000 531
Flagstar Corp., 10 3/4%, 9/15/01 1,000,000 935
-------
Total 2,220
-------
GAMING (9.5%)
Aztar Corp., 13 3/4%, 10/1/04 500,000 564
Bally's Grand, 10 3/8%, 12/15/03 1,000,000 980
Bally Park Place Funding, 9 1/4%,
3/15/04 500,000 472
GNF Corp., 10 5/8%, 4/1/03 1,000,000 842
Showboat, Inc., 9 1/4%, 5/1/08 500,000 458
Trump Hotels & Casino Resort,
15 1/2%, 6/15/05 500,000 486
Trump Plaza Funding, 10 7/8%,
06/15/01 500,000 460
-------
Total 4,262
-------
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- -------
<S> <C> <C>
HEALTHCARE (1.2%)
Charter Medical Corporation,
11 1/4%, 4/15/04 $ 500,000 $ 531
-------
HOME CONSTRUCTION (5.5%)
Kaufman & Broad Home Corp., 9 3/8%,
5/1/03 1,000,000 954
Toll Corporation, 10 1/2%, 3/15/02 1,000,000 1,030
US Home Corporation, 9 3/4%,
6/15/03 500,000 485
-------
Total 2,469
-------
INSURANCE (2.2%)
Reliance Group Holdings,
9 3/4%, 11/15/03 1,000,000 973
-------
LEISURE RELATED (0.9%)
Kloster Cruise, 13%, 5/1/03 500,000 385
-------
LODGING/RESORTS (2.2%)
HMH Properties Inc., 9 1/2%,
5/15/05 1,000,000 969
-------
MISCELLANEOUS BASIC MATERIALS (1.1%)
Tolmex S.A. De C.V., 8 3/8%,
11/1/03 750,000 510
-------
MOVIE THEATERS (3.4%)
Cinemark USA, 12%, 6/1/02 750,000 804
Plitt Theatres, 10 7/8%, 6/15/04 750,000 739
-------
Total 1,543
-------
OFFICE EQUIPMENT (2.2%)
United Stationer Supply Co.,
12 3/4%, 5/1/05 1,000,000 1,010
-------
OIL & GAS-INDEPENDENT (4.3%)
Bridas Corporation, 12 1/2%,
11/15/99 1,000,000 895
Transtexas Gas, 11 1/2%, 6/15/02 1,000,000 1,018
-------
Total 1,913
-------
PAPER (7.9%)
Indah Kiat International Finance,
12 1/2%, 6/15/06 1,000,000 1,010
Rainy River Forest Products,
10 3/4%, 10/15/01 500,000 521
Repap Wisconsin Incorporated,
9 1/4%, 2/1/02 500,000 483
Repap New Brunswick, 10 5/8%,
4/15/05 1,000,000 1,008
#+SD Warren Co., 12%, 12/15/04 500,000 538
-------
Total 3,560
-------
PRINTING & PUBLISHING (2.6%)
American Media Operation, 11 5/8%,
11/15/04 500,000 535
U.S. Banknote Corporation, 10 3/8%,
6/1/02 800,000 648
-------
Total 1,183
-------
REFINING (0.7%)
PDV America Inc., 7 7/8%, 8/1/03 345,000 313
-------
RETAIL-FOOD (10.4%)
Dominick's Finer Foods, 10 7/8%,
5/1/05 1,000,000 1,012
Pathmark Stores, 11 5/8%, 6/15/02 750,000 787
Penn Traffic Company, 9 5/8%,
4/15/05 1,000,000 942
</TABLE>
66
<PAGE> 70
NORTHWESTERN MUTUAL SERIES FUND, INC.
HIGH YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- -------
<S> <C> <C>
BONDS (CONTINUED)
RETAIL-FOOD (CONTINUED)
Pueblo Xtra International, 9 1/2%,
8/1/03 $1,000,000 $ 912
Ralphs Grocery Company, 11%,
6/15/05 1,000,000 1,010
-------
Total 4,663
-------
SOAPS & TOILETRIES (1.1%)
Coty Inc., 10 1/4%, 5/1/05 500,000 507
-------
STEEL (5.5%)
UCAR Global Enterprises, 12%,
1/15/05 1,000,000 1,070
WCI Steel, Inc., 10 1/2%, 3/1/02 500,000 485
Wheeling-Pittsburgh Corporation,
9 3/8%, 11/15/03 1,000,000 925
-------
Total 2,480
-------
TELECOMMUNICATIONS (2.3%)
Rogers Cantel Mobile Inc., 11 1/8%,
7/15/02 500,000 516
Rogers Communication Inc., 10 7/8%,
4/15/04 500,000 513
-------
Total 1,029
-------
TRUCKING-SHIPPING (1.2%)
Gearbulk Holding Ltd., 11 1/4%,
12/1/04 500,000 530
-------
<CAPTION>
MARKET
PAR/ VALUE
SHARES (000'S)
---------- -------
<S> <C> <C>
UTILITY-GAS (4.7%)
AmeriGas Partner, 10 1/8%, 4/15/07 $1,000,000 $ 1,050
Petroleum Heat & Power, 12 1/4%,
2/1/05 1,000,000 1,070
-------
Total 2,120
-------
Total Bonds 43,285
-------
COMMON STOCK WARRANTS (0.3%)
PAPER (0.3%)
#++SDW Holdings Corporation 20,000 $ 120
-------
Total Common Stock Warrants 120
-------
PREFERRED STOCK (1.2%)
PAPER (1.2%)
SD Warren Co. 20,000 $ 560
-------
Total Preferred Stock 560
-------
MONEY MARKET INVESTMENTS (2.2%)
FINANCIAL SERVICES (1.8%)
Xerox Credit Corporation, 5.86%,
7/17/95 $ 800,000 $ 798
-------
PROFESSIONAL SERVICES (0.4%)
PHH Corp., 5.96%, 7/18/95 200,000 199
-------
Total Money Market Investments 997
-------
Total Investments $44,962
=======
</TABLE>
+ Unregistered security, purchased December 13, 1994, cost $500,000.
++ Unregistered security, acquired May 23, 1995.
# The Portfolio has no right to require registration of unregistered
securities.
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
67
<PAGE> 71
NORTHWESTERN MUTUAL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
COMMERCIAL PAPER (87.9%)
BEVERAGES (7.7%)
Anheuser-Busch Companies, Inc.,
5.93%, 7/5/95 $4,000,000 $ 3,997
Pepsico Inc., 5.93%, 7/14/95 4,500,000 4,490
--------
Total 8,487
--------
CHEMICALS (4.5%)
E.I. Du Pont De Nemours & Co.,
5.89%, 7/21/95 5,000,000 4,984
--------
DRUGS (4.8%)
Smithkline Beecham Corp., 5.87%,
7/14/95 5,300,000 5,289
--------
ELECTRICAL EQUIPMENT (4.8%)
Emerson Electric Co., 5.93%,
7/28/95 5,300,000 5,276
--------
ELECTRONICS RELATED (4.8%)
General Electric Capital Corp.,
5.885%, 7/19/95 5,300,000 5,284
--------
FINANCE COMPANIES (8.7%)
American Express Company, 5.86%,
7/14/95 5,000,000 4,989
Ford Motor Credit Company, 5.95%,
7/11/95 4,600,000 4,592
--------
Total 9,581
--------
FINANCIAL SERVICES (14.5%)
IBM Credit Corporation, 5.87%,
7/5/95 5,300,000 5,297
Transamerica Financial Corp.,
5.9%, 7/5/95 5,300,000 5,297
Weyerhaeuser Mortgage Company,
5.96%, 7/24/95 5,300,000 5,280
--------
Total 15,874
--------
FOODS (6.1%)
Cargill Incorporated, 6.1%, 7/3/95 1,400,000 1,399
H.J. Heinz Company, 5.91%, 7/25/95 5,300,000 5,279
--------
Total 6,678
--------
<CAPTION>
MARKET
VALUE
PAR (000'S)
---------- --------
<S> <C> <C>
OFFICE EQUIPMENT (4.5%)
Xerox Corporation, 5.9%, 8/18/95 $5,000,000 $ 4,961
--------
PRINTING & PUBLISHING (9.1%)
Dow Jones & Company, Inc., 5.93%,
7/20/95 5,000,000 4,984
Knight-Ridder Inc., 5.95%, 7/21/95 5,000,000 4,983
--------
Total 9,967
--------
SOAPS & TOILETRIES (4.8%)
Colgate-Palmolive Co., 5.93%,
7/6/95 5,300,000 5,296
--------
TOBACCO (4.8%)
Philip Morris Companies, Inc.,
5.93%, 7/28/95 5,300,000 5,276
--------
UTILITY-ELECTRIC (4.1%)
National Rural Utility Finance
Corp., 5.91%, 7/5/95 4,500,000 4,497
--------
UTILITY-TELEPHONE (4.7%)
American Telephone & Telegraph,
5.92%, 8/7/95 5,200,000 5,168
--------
Total Commercial Paper 96,618
--------
ASSET-BACKED SECURITIES (7.3%)
AUTO RELATED (7.3%)
Banc One Auto Trust, 6.3625%,
4/15/96 $3,459,793 $ 3,463
Carco Auto Loan Master Trust,
6.135%, 10/15/00
(Variable rate; puttable; coupon
indexed to one month
Commercial Paper rate plus 7.5
basis points; reset monthly) 4,550,000 4,550
--------
Total 8,013
--------
Total Asset-Backed Securities 8,013
--------
CORPORATE-BACKED SECURITIES (4.8%)
PROFESSIONAL SERVICES (4.8%)
PHH Corp., 5.5%, 10/30/95
(Variable rate; coupon indexed
to six month U.S. Treasury Bill
less 3 basis points; reset
weekly) $5,235,000 $ 5,228
--------
Total Corporate-Backed Securities 5,228
--------
Total Investments $109,859
========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
68
<PAGE> 72
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (48.6%)
AEROSPACE (1.1%)
The Boeing Company 79,000 $ 4,947
EG&G, Inc. 12,300 206
General Dynamics Corporation 14,600 648
Lockheed Martin Corporation 46,161 2,914
Loral Corporation 19,600 1,014
McDonnell Douglas Corporation 26,400 2,026
Northrop Corporation 11,400 594
Raytheon Company 28,500 2,212
Rockwell International
Corporation 50,100 2,292
TRW Inc. 15,100 1,206
United Technologies Corp. 28,500 2,227
----------
Total 20,286
----------
AIRLINES (0.2%)
*AMR Corporation 17,600 1,313
Delta Air Lines, Inc. 11,700 863
Southwest Airlines Co. 33,200 793
*USAir Group, Inc. 13,600 158
----------
Total 3,127
----------
APPAREL, TEXTILES AND FOOTWEAR (0.2%)
Brown Group, Inc. 4,100 93
*Fruit Of The Loom Incorporated 17,500 370
Liz Claiborne, Inc. 17,300 368
Nike, Inc. 16,700 1,403
Reebok International Ltd. 18,500 629
Russell Corp. 9,000 259
Springs Industries, Inc. 4,700 175
Stride Rite Corp. 11,500 119
VF Corporation 14,700 790
----------
Total 4,206
----------
AUTO & TRUCKS (1.1%)
Chrysler Corporation 85,400 4,089
Ford Motor Company 237,500 7,066
General Motors Corporation 172,900 8,105
*Navistar International Corp. 17,270 261
PACCAR Incorporated 8,995 421
----------
Total 19,942
----------
AUTO RELATED (0.3%)
Cooper Tire & Rubber Company 19,300 470
Dana Corporation 23,400 670
Eaton Corporation 18,000 1,046
Echlin Inc. 13,800 480
Genuine Parts Company 28,350 1,074
Goodyear Tire & Rubber Company 35,100 1,448
SPX Corp. 2,900 33
Snap-On Incorporated 9,300 360
----------
Total 5,581
----------
BANKS (2.8%)
Banc One Corporation 91,282 2,944
Bank of Boston Corporation 25,700 964
Bank of New York Company Inc. 44,200 1,785
BankAmerica Corporation 86,600 4,557
Bankers Trust New York Corp. 18,100 1,122
Barnett Banks Inc. 22,400 1,148
Boatmans Bancshares, Inc. 29,100 1,026
Chase Manhattan Corporation 41,100 1,932
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
BANKS (CONTINUED)
Chemical Banking Corporation 55,700 $ 2,632
Citicorp 91,900 5,319
Corestates Financial Corp. 33,400 1,165
First Chicago Corporation 20,800 1,245
First Fidelity Bancorporation 18,700 1,103
First Interstate Bancorp 17,600 1,412
First Union Corporation 39,800 1,801
Fleet Financial Group Inc. 32,700 1,214
KeyCorp 55,000 1,726
Mellon Bank Corporation 33,850 1,409
J.P. Morgan & Company, Inc. 43,400 3,043
NBD Bancorp, Inc. 37,000 1,184
National City Corp. 33,900 996
NationsBank Corp. 62,800 3,368
Norwest Corporation 74,900 2,153
PNC Financial Corp. 52,900 1,395
Shawmut National Corp. 29,700 947
Suntrust Banks Inc. 26,600 1,549
U.S. Bancorp of Oregon 22,700 546
Wachovia Corporation 39,600 1,416
Wells Fargo & Company 11,400 2,055
----------
Total 53,156
----------
BEVERAGES (1.8%)
Anheuser-Busch Companies Inc. 59,300 3,373
Brown-Forman Corp. 16,000 534
The Coca-Cola Company 293,200 18,691
Adolph Coors Co. 8,800 144
Pepsico Inc. 182,200 8,313
Seagram Company Ltd. 86,200 2,985
----------
Total 34,040
----------
BUILDING & CONSTRUCTION (0.1%)
Centex Corporation 6,600 186
Crane Co. 7,000 254
Kaufman & Broad Home Corp. 7,400 107
Masco Corporation 36,300 980
Morrison Knudsen Corporation 7,500 51
*Owens-Corning Fiberglas Corporation 11,000 406
Pulte Corporation 6,200 174
Sherwin-Williams Company 19,700 702
----------
Total 2,860
----------
BUILDING-FOREST PRODUCTS (0.3%)
Boise Cascade Corporation 10,900 441
Champion International 21,600 1,126
Georgia-Pacific Corporation 21,000 1,822
Louisiana-Pacific Corporation 24,900 654
Potlatch Corporation 6,800 284
Weyerhaeuser Company 47,600 2,243
----------
Total 6,570
----------
CHEMICALS (1.5%)
Air Products & Chemicals, Inc. 25,800 1,438
Dow Chemical Company 63,700 4,578
Eastman Chemical Company 19,275 1,147
E.I. Du Pont De Nemours & Co. 127,800 8,786
Ecolab, Inc. 14,900 365
*FMC Corporation 8,500 572
First Mississippi Corp. 4,700 160
W.R. Grace & Co. 21,800 1,338
</TABLE>
69
<PAGE> 73
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (CONTINUED)
CHEMICALS (CONTINUED)
Great Lakes Chemical 15,300 $ 922
Hercules Incorporated 27,000 1,316
Mallinckrodt Group Inc. 17,700 628
Monsanto Company 26,400 2,379
PPG Industries Inc. 47,700 2,051
Praxair 31,900 798
Rohm & Haas Company 15,600 856
Union Carbide Corporation 31,700 1,058
----------
Total 28,392
----------
CHEMICALS-SPECIALTY (0.2%)
Avery Dennison Corp. 12,300 492
Engelhard Corp. 22,000 943
B.F. Goodrich Company 6,000 322
Morton International, Inc. 34,200 1,000
Nalco Chemical Company 15,700 571
Sigma-Aldrich Corp. 11,500 565
----------
Total 3,893
----------
COAL, GAS & PIPELINE (0.1%)
Eastern Enterprises 4,700 140
NACCO Industries, Inc. 2,100 126
Sonat Inc. 20,000 610
----------
Total 876
----------
CONTAINERS (0.1%)
Ball Corporation 7,000 244
Bemis Company, Inc. 11,900 309
*Crown Cork & Seal Company,
Inc. 20,900 1,048
----------
Total 1,601
----------
DIVERSIFIED (1.0%)
Allied Signal Inc. 65,800 2,928
Corning Inc. 53,000 1,736
The Dial Corp. 21,500 532
ITT Corp. 24,400 2,867
Minnesota Mining & Manufacturing Co. 97,100 5,559
National Service Industries,
Inc. 11,200 323
Ogden Corporation 11,300 247
*Teledyne, Inc. 12,800 314
Tenneco Inc. 41,800 1,923
Textron Inc. 19,700 1,145
Tyco Laboratories, Inc. 17,700 956
Whitman Corporation 24,300 471
Worthington Industries, Inc. 21,000 429
----------
Total 19,430
----------
DRUGS (2.6%)
*ALZA Corp. 19,000 444
American Home Products Corp. 71,300 5,517
*Amgen Inc. 30,600 2,461
Bristol-Myers Squibb Company 117,300 7,991
Eli Lily & Company 67,600 5,307
Merck & Co., Inc. 286,000 14,014
Pfizer Inc. 73,000 6,743
Schering-Plough Corporation 86,100 3,799
Upjohn Company 40,000 1,515
Warner-Lambert Company 31,200 2,695
----------
Total 50,486
----------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
ELECTRICAL EQUIPMENT (1.6%)
Emerson Electric Co. 54,000 $ 3,861
General Electric Company 391,800 22,088
W.W. Grainger, Inc. 11,700 687
Honeywell Inc. 29,400 1,268
Raychem Corp. 10,200 391
Thomas & Betts Corporation 4,500 308
Westinghouse Electric
Corporation 82,800 1,211
----------
Total 29,814
----------
ELECTRONICS (1.3%)
*Advanced Micro Devices, Inc. 23,900 869
AMP Incorporated 48,500 2,049
*Applied Materials Inc. 19,500 1,689
Harris Corporation 9,000 465
Intel Corp. 191,600 12,131
Micron Technology 47,500 2,607
*National Semiconductor Corporation 28,700 796
The Perkin-Elmer Corporation 9,700 344
Tektronix, Inc. 7,500 369
Texas Instruments Incorporated 21,500 2,878
*Zenith Electronics Corp. 10,800 80
----------
Total 24,277
----------
ENGINEERING & CONSTRUCTION (0.1%)
Fluor Corporation 19,100 993
----------
ENVIRONMENTAL CONTROL (0.3%)
Browning-Ferris Industries Inc. 49,200 1,777
Johnson Controls Inc. 9,400 531
Laidlaw Transportation Limited 64,100 617
Millipore Corp. 5,200 351
Safety-Kleen Corp. 13,300 214
WMX Technologies, Inc. 111,900 3,175
Zurn Industries, Inc. 2,800 56
----------
Total 6,721
----------
FEDERAL GOVERNMENT AGENCY RELATED (0.5%)
Federal Home Loan Mortgage Corp. 41,800 2,874
Federal National Mortgage
Assoc. 63,100 5,955
----------
Total 8,829
----------
FINANCIAL SERVICES (0.9%)
American Express Company 114,700 4,029
Beneficial Corporation 12,200 537
Dean Witter, Discover & Co. 39,050 1,835
Household International Inc. 22,300 1,104
MBNA Corp. 34,350 1,159
Marsh & McLennan Companies Inc. 16,900 1,371
Merrill Lynch & Co., Inc. 40,700 2,137
Salomon Inc. 24,600 987
Transamerica Corporation 16,000 932
Travelers Group Inc. 73,946 3,235
----------
Total 17,326
----------
FOOD SERVICES/LODGING (0.5%)
*Darden Restaurant Inc. 36,500 397
*Harrah's Entertainment 23,700 817
Hilton Hotels Corporation 11,200 787
Luby's Cafeterias, Inc. 5,500 111
Marriott International 28,300 1,015
McDonald's Corporation 160,400 6,276
Promus Hotels 11,850 108
</TABLE>
70
<PAGE> 74
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOOD SERVICES/LODGING (CONTINUED)
*Ryan's Family Steak Houses,
Inc. 12,300 $ 97
*Shoney's Inc. 9,500 112
Wendy's International, Inc. 23,600 422
----------
Total 10,142
----------
FOODS (1.6%)
Archer Daniels Midland Company 119,333 2,223
CPC International Corp. 33,800 2,087
Campbell Soup Company 57,600 2,822
ConAgra Inc. 56,800 1,981
General Mills, Inc. 36,600 1,880
H.J. Heinz Company 56,300 2,498
Hershey Foods Corporation 20,100 1,111
Kellogg Company 50,800 3,626
Pioneer Hi-Bred International 19,600 823
Quaker Oats Company 30,900 1,016
Ralston Purina Group 23,200 1,183
Sara Lee Corporation 110,900 3,161
Unilever, N.V. 37,000 4,815
Wm. Wrigley Jr. Company 26,900 1,247
----------
Total 30,473
----------
HOSPITAL SUPPLIES (1.8%)
Abbott Laboratories Inc. 184,600 7,476
Allergan Incorporated 14,800 401
C.R. Bard, Inc. 12,100 363
Bausch & Lomb Inc. 13,500 560
Baxter International Inc. 64,600 2,350
Becton, Dickinson & Company 15,500 903
*Beverly Enterprises, Inc. 19,800 245
*Biomet, Inc. 26,900 417
*Boston Scientific Corp. 34,700 1,106
Columbia/HCA Healthcare Corp. 102,400 4,429
*Community Psychiatric Centers 10,000 113
Johnson & Johnson 149,300 10,096
Manor Care, Inc. 14,400 419
Medtronic, Incorporated 26,700 2,059
St. Jude Medical, Inc. 10,800 541
*Tenet Healthcare Corp 46,200 664
United Healthcare Corp. 40,100 1,659
U.S. HealthCare Incorporated 37,100 1,136
U.S. Surgical Corporation 13,200 276
----------
Total 35,213
----------
HOUSEHOLD FURNITURE/APPLIANCES (0.3%)
Armstrong World Industries,
Inc. 8,600 431
Bassett Furniture Industries,
Inc. 3,300 92
Black & Decker Corporation 19,700 608
Maytag Corporation 24,900 398
Newell Co. 36,500 894
Premark International, Inc. 14,100 731
Rubbermaid, Inc. 37,200 1,032
The Stanley Works 10,300 390
Whirlpool Corporation 17,100 941
----------
Total 5,517
----------
INSURANCE (1.3%)
Aetna Life & Casualty Company 26,100 1,641
Alexander & Alexander Services 10,200 244
American General Corporation 47,400 1,600
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
INSURANCE (CONTINUED)
American International Group,
Inc 73,100 $ 8,333
CIGNA Corporation 16,700 1,296
The Chubb Corporation 20,100 1,611
General Re Corporation 19,000 2,544
Jefferson-Pilot Corp. 11,200 613
Lincoln National Corporation 21,900 958
Loews Corp. 13,600 1,646
Providian Corporation 22,300 808
SAFECO Inc. 14,600 839
St. Paul Companies, Inc. 19,500 960
Torchmark Corporation 16,500 623
UNUM Corporation 16,800 788
USF&G Corp. 22,900 372
USLIFE Corporation 5,300 213
----------
Total 25,089
----------
LEISURE RELATED (0.7%)
*Bally Entertainment
Corporation 10,800 132
Brunswick Corporation 22,200 377
Walt Disney Company 120,500 6,703
Fleetwood Enterprises, Inc. 10,600 209
Handleman Co. 7,700 74
Hasbro Inc. 20,300 645
*King World Productions, Inc. 8,500 344
Mattel, Inc. 51,168 1,330
Outboard Marine Corporation 4,600 90
Skyline Corporation 2,600 47
*Viacom Incorporated 83,256 3,840
----------
Total 13,791
----------
MACHINERY (0.7%)
Briggs & Stratton Corporation 6,900 238
Caterpillar Inc. 46,200 2,968
Cincinnati Milacron Inc. 7,800 211
*Clark Equipment Company 4,000 344
Cooper Industries, Inc. 27,100 1,070
Cummins Engine Company, Inc. 9,400 410
Deere & Company 20,000 1,713
Dover Corporation 13,100 953
Foster Wheeler Corporation 8,300 293
General Signal Corporation 10,900 433
Giddings & Lewis Company 8,000 143
Harnischfeger Industries, Inc. 10,600 367
Illinois Tool Works Inc. 26,400 1,452
Ingersoll-Rand Company 24,400 933
Pall Corporation 26,866 598
Parker-Hannifin Corporation 17,100 620
The Timken Company 7,200 332
TRINOVA Corp. 6,700 235
*Varity Corporation 9,600 422
----------
Total 13,735
----------
MEDIA (0.5%)
CBS Inc. 14,200 951
Capital Cities/ABC, Inc. 35,600 3,845
Comcast Corp. 55,450 1,029
*Tele-Communications, Inc. 151,000 3,539
----------
Total 9,364
----------
METALS & MINING (0.7%)
Alcan Aluminum Limited 52,000 1,573
</TABLE>
71
<PAGE> 75
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (CONTINUED)
METALS & MINING (CONTINUED)
Aluminum Co. of America 41,200 $ 2,065
ASARCO, Inc. 9,800 299
Barrick Gold Corporation 81,700 2,063
Cyprus Minerals Co. 21,400 610
Echo Bay Mines Limited 100 1
Echo Bay Mines Limited 25,900 233
Homestake Mining Company 31,900 526
Inco Limited 27,100 766
Newmont Mining Corporation 19,889 833
Phelps Dodge Corporation 16,100 950
Placer Dome Incorporated 55,200 1,442
Reynolds Metals Company 14,500 750
Santa Fe Pacific Gold Corp. 30,340 368
----------
Total 12,479
----------
OFFICE EQUIPMENT (2.1%)
*Amdahl Corporation 27,300 304
Apple Computer, Inc. 28,000 1,300
*Cabletron Systems Inc. 16,600 884
*Ceridian Corp. 10,500 387
*Cisco Systems Incorporated 62,100 3,140
*Compaq Computer Corporation 60,500 2,745
*Cray Research, Inc. 5,800 141
*Data General Corporation 8,500 82
*Digital Equipment Corporation 34,000 1,386
Hewlett-Packard Company 118,000 8,791
*Intergraph Corp. 10,600 118
International Business Machines Corp. 134,300 12,893
Moore Corporation Ltd. 23,000 509
Pitney Bowes Inc. 34,900 1,339
Silicon Graphics 36,700 1,463
*Sun Microsystems Inc. 22,100 1,072
*Tandem Computers Inc. 26,900 434
*Unisys Corporation 39,600 431
Xerox Corporation 24,800 2,908
----------
Total 40,327
----------
OFFICE EQUIPMENT-SERVICES (1.4%)
Alco Standard Corporation 12,700 1,014
Autodesk, Inc. 11,000 473
Automatic Data Processing, Inc. 33,300 2,094
Computer Associates International Inc. 37,000 2,507
*Computer Sciences Corp. 12,700 722
First Data Corporation 27,700 1,575
*Lotus Development Corporation 11,000 701
*Microsoft Corporation 134,400 12,146
Novell, Inc. 84,700 1,689
*Oracle Systems Corp. 99,700 3,851
Shared Medical Systems Corp. 5,300 213
----------
Total 26,985
----------
OIL & GAS-DOMESTIC (0.8%)
Amerada Hess Corporation 21,500 1,051
Ashland Oil, Inc. 14,400 506
Atlantic Richfield Company 37,200 4,083
Burlington Resource Inc. 29,300 1,080
Coastal Corp. 24,200 735
Kerr-McGee Corporation 12,000 644
Louisiana Land & Exploration
Co. 7,700 307
Occidental Petroleum
Corporation 73,400 1,679
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
OIL & GAS-DOMESTIC (CONTINUED)
*Oryx Energy Company 23,900 $ 329
Pennzoil Company 10,700 504
Phillips Petroleum Company 60,600 2,023
*Santa Fe Energy Resources,
Inc. 20,900 199
Sun Company, Inc. 24,700 676
Unocal Corp. 56,500 1,561
----------
Total 15,377
----------
OIL & GAS-INTERNATIONAL (3.3%)
Amoco Company 114,800 7,649
Chevron Corp. 150,800 7,031
Exxon Corporation 287,300 20,291
Mobil Corporation 91,500 8,784
Royal Dutch Petroleum Co., ADR 124,000 15,113
Texaco Inc. 60,100 3,944
----------
Total 62,812
----------
OIL FIELD SERVICES (0.4%)
Baker Hughes Inc. 32,600 668
Dresser Industries, Inc. 42,100 937
Halliburton Company 26,400 944
Helmerich & Payne, Inc. 5,700 168
McDermott International, Inc. 12,400 299
*Rowan Companies, Inc. 19,400 158
Schlumberger Limited 56,000 3,479
*Western Atlas Inc. 12,200 541
----------
Total 7,194
----------
PAPER (0.6%)
Federal Paper Board Company,
Inc. 9,900 350
International Paper Company 29,300 2,512
James River Corp. of Virginia 18,900 522
Kimberly-Clark Corporation 37,100 2,221
Mead Corp. 13,000 772
Scott Paper Company 35,000 1,732
*Stone Container Corporation 20,900 444
Temple-Inland Inc. 13,000 619
Union Camp Corporation 16,200 938
Westvaco Corporation 15,600 690
----------
Total 10,800
----------
PHOTO & OPTICAL (0.3%)
Eastman Kodak Company 78,700 4,771
Polaroid Corporation 10,400 424
----------
Total 5,195
----------
PRINTING & PUBLISHING (0.8%)
American Greetings Corp. 17,200 505
Deluxe Corp. 19,100 633
R.R. Donnelley & Sons Company 35,200 1,267
Dow Jones & Company, Inc. 22,400 826
Dun & Bradstreet Corporation 39,200 2,058
Gannett Company Inc. 32,400 1,758
Harcourt General 16,800 714
The John H. Harland Company 7,100 162
Jostens, Inc. 10,500 223
Knight-Ridder Inc. 11,500 654
McGraw-Hill, Inc. 11,500 873
Meredith Corporation 6,400 162
New York Times Company 22,400 526
Time Warner Inc. 87,900 3,615
</TABLE>
72
<PAGE> 76
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (CONTINUED)
PRINTING & PUBLISHING (CONTINUED)
Times Mirror Co. 25,900 $ 618
Tribune Company 15,200 933
----------
Total 15,527
----------
PROFESSIONAL SERVICES (0.2%)
H & R Block, Inc. 24,200 995
*CUC International Inc. 26,700 1,121
Interpublic Group of Cos., Inc. 18,100 679
Service Corporation
International 22,200 702
----------
Total 3,497
----------
RAILROADS (0.5%)
Burlington Northern Railroad,
Inc. 20,700 1,312
CSX Corporation 24,300 1,826
Conrail Incorporated 18,100 1,007
Norfolk Southern Corporation 30,500 2,055
Santa Fe Pacific Corp. 35,181 897
Union Pacific Corporation 47,500 2,629
----------
Total 9,726
----------
RETAIL-FOOD (0.4%)
Albertson's, Inc. 58,800 1,749
American Stores Co. 34,300 965
Bruno's Inc. 18,000 209
Fleming Companies, Inc. 8,700 231
Giant Food Inc. 13,700 389
Great Atlantic & Pacific Co.,
Inc. 8,800 232
*The Kroger Company 25,800 693
Supervalu Inc. 16,100 469
Sysco Corporation 42,200 1,245
Winn-Dixie Stores, Inc. 17,500 1,011
----------
Total 7,193
----------
RETAIL-GENERAL (2.4%)
Charming Shoppes Incorporated 23,700 124
Circuit City Stores, Inc. 22,300 705
Dayton Hudson Corporation 16,600 1,191
Dillard Department Stores, Inc. 26,100 767
The Gap, Inc. 33,300 1,161
Home Depot, Inc. 104,866 4,260
K Mart Corporation 105,700 1,546
The Limited Inc. 82,600 1,817
Longs Drug Stores Corp. 4,800 180
Lowe's Companies, Inc. 37,000 1,105
May Department Stores Company 57,500 2,393
Melville Corporation 24,300 832
Mercantile Stores Company 8,500 395
Nordstrom, Inc. 19,000 786
J.C. Penney Company, Inc. 53,800 2,582
Pep Boys - Manny, Moe & Jack 14,200 380
*Price/Costco, Inc. 45,051 732
Rite Aid Corporation 19,500 500
Sears, Roebuck & Company 89,800 5,377
The TJX Companies, Inc. 16,700 221
Tandy Corporation 17,000 882
*Toys "R" Us 64,100 1,875
Wal-Mart Stores, Inc. 531,400 14,215
Walgreen Company 28,500 1,429
*Woolworth Corp. 30,600 463
----------
Total 45,918
----------
<CAPTION>
MARKET
VALUE
SHARES (000'S)
----------- ----------
<S> <C> <C>
SAVINGS & LOAN (0.1%)
H.F. Ahmanson & Company 27,100 $ 596
Golden West Financial
Corporation 13,600 641
Great Western Financial
Corporation 31,200 644
----------
Total 1,881
----------
SOAPS & TOILETRIES (1.1%)
Alberto-Culver Company 6,400 194
Avon Products, Inc. 15,800 1,059
The Clorox Company 12,300 803
Colgate-Palmolive Co. 33,500 2,450
Gillette Company 102,400 4,570
International Flavors & Fragrances,
Inc. 25,800 1,284
The Procter & Gamble Company 159,000 11,428
----------
Total 21,788
----------
STEEL (0.2%)
*Armco Inc. 24,300 164
Bethlehem Steel Corporation 25,500 414
Inland Steel Industries, Inc. 11,200 342
Nucor Corp. 20,200 1,081
USX-Marathon Group 68,700 1,357
USX-U S Steel Group Inc. 17,700 608
----------
Total 3,966
----------
TELECOMMUNICATIONS (1.7%)
AT&T Corporation 366,000 19,444
*Andrew Corporation 8,950 518
*DSC Communications Corp. 26,400 1,228
*M/A-Com, Inc. 6,200 73
Motorola, Inc. 136,100 9,136
Northern Telecom Limited 58,600 2,139
Scientific-Atlanta, Inc. 17,700 389
----------
Total 32,927
----------
TOBACCO (0.9%)
American Brands, Inc. 43,700 1,737
Philip Morris Companies, Inc. 195,400 14,533
UST Incorporated 45,300 1,348
----------
Total 17,618
----------
TRANSPORTATION-MISC. (0.0%)
Pittston Services Group 9,600 230
----------
TRUCKING-SHIPPING (0.1%)
Consolidated Freightways, Inc. 10,000 221
*Federal Express Corp. 13,000 790
Roadway Services, Inc. 9,000 425
Ryder System, Inc. 18,200 435
Yellow Corp. 6,500 118
----------
Total 1,989
----------
UTILITY-ELECTRIC (1.9%)
American Electric Power Co.
Inc. 42,900 1,507
Baltimore Gas & Electric
Company 34,100 853
Carolina Power & Light Company 36,200 1,095
Central & South West
Corporation 44,200 1,160
Cinergy Corporation 35,905 943
Consolidated Edison Co. of New York 54,300 1,602
Detroit Edison Company 33,500 988
Dominion Resources Inc. 40,000 1,460
Duke Power Company 47,400 1,967
</TABLE>
73
<PAGE> 77
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
SHARES/ VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
COMMON STOCK (CONTINUED)
UTILITY-ELECTRIC (CONTINUED)
Entergy Corporation 52,700 $ 1,271
FPL Group, Inc. 42,900 1,657
General Public Utilities 26,700 794
Houston Industries Incorporated 30,400 1,281
Niagara Mohawk Power Corporation 33,400 493
Northern States Power Company 15,600 720
Ohio Edison Company 35,300 799
PECO Energy Company 51,300 1,417
Pacific Enterprises 19,000 466
Pacific Gas & Electric Company 99,500 2,886
PacifiCorp 65,700 1,232
Public Service Enterprise Group, Inc. 56,600 1,571
SCEcorp 103,400 1,771
The Southern Company 153,900 3,444
Texas Utilities Company 52,200 1,794
Unicom Corp. 49,600 1,321
Union Electric Company 23,600 879
----------
Total 35,371
----------
UTILITY-GAS (0.3%)
*Columbia Gas System Inc. 11,700 371
Consolidated Natural Gas Co. 21,500 812
ENSERCH Corporation 15,500 265
Enron Corp. 58,200 2,044
Nicor Inc. 11,700 314
Noram Energy Corporation 28,600 186
ONEOK, Inc. 6,200 133
Panhandle Eastern Corporation 34,500 841
Peoples Energy Corporation 8,100 210
Williams Companies Inc. 23,400 816
----------
Total 5,992
----------
UTILITY-TELEPHONE (2.9%)
*Airtouch Communications 114,300 3,258
ALLTEL Corporation 43,700 1,109
Ameritech Corporation 128,000 5,632
Bell Atlantic Corporation 100,900 5,650
Bellsouth Corporation 114,800 7,290
GTE Corporation 224,300 7,654
MCI Communications Corporation 157,200 3,458
NYNEX Corp. 98,500 3,965
Pacific Telesis Group 98,100 2,624
SBC Communications Incorporated 140,600 6,696
Sprint Corporation 80,600 2,710
U S West Inc. 108,900 4,533
----------
Total 54,579
----------
Total Common Stock 925,101
----------
PREFERRED STOCK (0.00%)
DIVERSIFIED (0.00%)
Teledyne, Inc. 258 $ 4
----------
Total Preferred Stock 4
----------
BONDS (34.2%)
AIRLINES (0.3%)
Delta Air Lines, Inc., 9 3/4%,
5/19/03 $ 532,000 $ 592
Delta Air Lines, Inc., 9 3/4%,
6/1/03 3,513,000 3,909
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
AIRLINES (CONTINUED)
Delta Air Lines, Inc., 9 3/4%,
6/1/03 $ 870,000 $ 968
Delta Air Lines, Inc., 9 3/4%,
6/1/03 870,000 968
----------
Total 6,437
----------
AUTO RELATED (0.2%)
Hertz Corp, 9.04%, 6/14/00 4,100,000 4,506
----------
BANKS (0.6%)
Natwest Capital Corporation,
12 1/8%, 11/15/02 10,450,000 11,725
----------
BEVERAGES (0.6%)
Coca-Cola Enterprises Inc., 8%,
1/4/05 10,000,000 11,043
----------
CHEMICALS (0.5%)
Dow Capital B.V., 8 1/2%,
6/8/10 8,200,000 9,553
----------
CMO & LOAN-BACKED CERTIFICATES (5.6%)
CIT RV Owner Trust, 6 1/4%,
1/15/11 7,500,000 7,466
Federal Home Loan Mortgage Corp.,
7 1/4%, 4/15/18 10,325,000 10,419
Federal Home Loan Mortgage Corp.,
7%, 3/15/07 7,250,000 7,258
Federal Home Loan Mortgage Corp.,
6%, 7/15/07 19,250,000 18,445
Federal National Mortgage
Assoc., 6 1/4%, 7/25/07 21,150,000 20,724
Federal National Mortgage
Assoc., 6 3/4%, 12/25/23 6,500,000 6,043
Premier Auto Trust, 6.65%,
4/2/98 6,930,000 6,988
Rural Housing Trust, 6.33%,
4/1/26 10,489,881 10,306
Security Capital Trust, 7.3%,
5/15/01 8,000,000 8,071
World Omni Grantor Trust,
7.95%, 1/25/01 10,000,000 10,243
----------
Total 105,963
----------
DIVERSIFIED (0.4%)
Tenneco Inc., 10%, 8/1/98 6,250,000 6,855
----------
FEDERAL GOVERNMENT AND AGENCIES (15.4%)
Federal National Mortgage Assoc.,
7%, 12/1/23 27,779,550 27,352
Government National Mortgage Assoc.,
7%, 9/15/23 118,521 117
Government National Mortgage Assoc.,
7%, 10/15/23 217,082 214
Government National Mortgage Assoc.,
7 1/2%, 8/15/24 993,408 998
Government National Mortgage Assoc.,
7%, 9/15/23 29,424 29
Government National Mortgage Assoc.,
7%, 7/15/23 837,604 826
Government National Mortgage Assoc.,
7%, 5/15/23 9,230,796 9,091
Government National Mortgage Assoc.,
7%, 5/15/23 6,804,666 6,701
</TABLE>
74
<PAGE> 78
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
BONDS (CONTINUED)
FEDERAL GOVERNMENT AND AGENCIES (CONTINUED)
Government National Mortgage Assoc.,
7%, 6/15/23 $ 352,437 $ 348
Government National Mortgage Assoc.,
7%, 10/15/23 30,222 30
Government National Mortgage Assoc.,
7%, 5/15/23 207,988 205
Government National Mortgage Assoc.,
7 1/2%, 1/15/24 237,767 239
Government National Mortgage Assoc.,
7%, 7/15/23 818,845 806
Government National Mortgage Assoc.,
7%, 2/15/24 44,350 44
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 159,638 166
Government National Mortgage Assoc.,
7%, 8/15/23 29,531 29
Government National Mortgage Assoc.,
8 1/2%, 7/15/24 280,674 291
Government National Mortgage Assoc.,
7%, 6/15/23 763,888 753
Government National Mortgage Assoc.,
7%, 7/15/23 68,312 67
Government National Mortgage Assoc.,
7%, 10/15/23 169,145 166
Government National Mortgage Assoc.,
7%, 9/15/23 734,939 724
Government National Mortgage Assoc.,
7 1/2%, 5/15/24 1,092,890 1,098
Government National Mortgage Assoc.,
7%, 12/15/23 884,549 872
Government National Mortgage Assoc.,
7%, 10/15/23 127,642 126
Government National Mortgage Assoc.,
7 1/2%, 1/15/24 1,159,804 1,166
Government National Mortgage Assoc.,
8 1/2%, 8/15/24 328,268 341
Government National Mortgage Assoc.,
7%, 11/15/23 823,144 811
Government National Mortgage Assoc.,
7%, 2/15/24 139,760 138
Government National Mortgage Assoc.,
7%, 11/15/23 860,725 848
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 937,858 973
Government National Mortgage Assoc.,
7%, 12/15/23 739,817 718
Government National Mortgage Assoc.,
7%, 2/15/24 335,816 326
Government National Mortgage Assoc.,
7%, 1/15/24 922,903 909
Government National Mortgage Assoc.,
7%, 3/15/24 713,381 703
Government National Mortgage Assoc.,
7%, 12/15/23 904,561 891
Government National Mortgage Assoc.,
7%, 11/15/23 608,486 600
Government National Mortgage Assoc.,
8 1/2%, 11/15/24 433,446 450
Government National Mortgage Assoc.,
7%, 9/15/23 35,807 35
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
FEDERAL GOVERNMENT AND AGENCIES (CONTINUED)
Government National Mortgage Assoc.,
7%, 2/15/24 $ 746,976 $ 736
Government National Mortgage Assoc.,
8 1/2%, 7/15/24 265,581 276
Government National Mortgage Assoc.,
7%, 1/15/24 53,500 53
Government National Mortgage Assoc.,
7%, 10/15/23 123,876 122
Government National Mortgage Assoc.,
8 1/2%, 11/15/24 243,874 253
Government National Mortgage Assoc.,
8 1/2%, 1/15/25 25,318 26
Government National Mortgage Assoc.,
7%, 1/15/24 245,252 243
Government National Mortgage Assoc.,
7 1/2%, 11/15/24 1,011,278 1,016
Government National Mortgage Assoc.,
8 1/2%, 7/15/24 345,060 358
Government National Mortgage Assoc.,
7 1/2%, 2/15/24 1,658,661 1,667
Government National Mortgage Assoc.,
7 1/2%, 3/15/24 1,577,214 1,585
Government National Mortgage Assoc.,
7 1/2%, 8/15/24 993,428 998
Government National Mortgage Assoc.,
7%, 2/15/24 827,253 815
Government National Mortgage Assoc.,
7%, 5/15/24 812,705 800
Government National Mortgage Assoc.,
7 1/2%, 5/15/24 1,437,013 1,444
Government National Mortgage Assoc.,
7 1/2%, 4/15/24 977,776 983
Government National Mortgage Assoc.,
7 1/2%, 5/15/24 1,492,060 1,500
Government National Mortgage Assoc.,
8 1/2%, 6/15/24 861,309 894
Government National Mortgage Assoc.,
7%, 4/15/24 126,820 125
Government National Mortgage Assoc.,
7%, 4/15/24 30,144 30
Government National Mortgage Assoc.,
8 1/2%, 6/15/24 377,162 391
Government National Mortgage Assoc.,
8 1/2%, 7/15/24 225,102 234
Government National Mortgage Assoc.,
8 1/2%, 1/15/25 71,835 75
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 500,284 519
Government National Mortgage Assoc.,
8 1/2%, 8/15/24 347,927 361
Government National Mortgage Assoc.,
7%, 4/15/24 97,340 96
Government National Mortgage Assoc.,
7 1/2%, 6/15/24 1,506,029 1,514
Government National Mortgage Assoc.,
8 1/2%, 7/15/24 274,382 285
Government National Mortgage Assoc.,
8 1/2%, 8/15/24 243,200 253
Government National Mortgage Assoc.,
7 1/2%, 8/15/24 996,104 1,001
Government National Mortgage Assoc.,
8 1/2%, 1/15/25 161,480 168
</TABLE>
75
<PAGE> 79
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
BONDS (CONTINUED)
FEDERAL GOVERNMENT AND AGENCIES (CONTINUED)
Government National Mortgage Assoc.,
7 1/2%, 8/15/24 $1,247,027 $ 1,253
Government National Mortgage Assoc.,
8 1/2%, 8/15/24 222,371 231
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 289,335 300
Government National Mortgage Assoc.,
7 1/2%, 6/15/24 39,005 39
Government National Mortgage Assoc.,
8 1/2%, 8/15/24 278,472 289
Government National Mortgage Assoc.,
8 1/2%, 9/15/24 403,223 419
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 56,592 59
Government National Mortgage Assoc.,
8 1/2%, 12/15/24 660,202 685
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 73,415 76
Government National Mortgage Assoc.,
8 1/2%, 2/15/25 466,611 484
Government National Mortgage Assoc.,
8 1/2%, 2/15/23 156,149 162
Government National Mortgage Assoc.,
8 1/2%, 9/15/22 665,655 691
Government National Mortgage Assoc.,
8 1/2%, 10/15/22 674,771 700
Government National Mortgage Assoc.,
7%, 5/15/23 495,202 488
Government National Mortgage Assoc.,
8 1/2%, 9/15/21 271,543 282
Government National Mortgage Assoc.,
8 1/2%, 7/15/21 217,629 226
Government National Mortgage Assoc.,
8 1/2%, 5/15/22 471,118 489
Government National Mortgage Assoc.,
8 1/2%, 10/15/22 14,153 15
Government National Mortgage Assoc.,
8 1/2%, 9/15/22 735,166 763
Government National Mortgage Assoc.,
8 1/2%, 10/15/22 735,954 764
Government National Mortgage Assoc.,
8 1/2%, 1/15/23 261,644 272
Government National Mortgage Assoc.,
8 1/2%, 2/15/23 227,620 236
Government National Mortgage Assoc.,
8 1/2%, 12/15/22 505,459 525
U.S. Treasury, 7 1/8%, 2/15/23 28,000,000 29,558
U.S. Treasury, 6 1/4%, 8/15/23 20,700,000 19,575
U.S. Treasury, 7 1/2%, 11/15/24 8,500,000 9,414
U.S. Treasury, 7 5/8%, 2/15/25 18,000,000 20,306
U.S. Treasury, 6 7/8%, 10/31/96 25,000,000 25,321
U.S. Treasury, 4 3/4%, 8/31/98 11,250,000 10,867
U.S. Treasury, 7 1/4%, 8/15/04 26,000,000 27,763
U.S. Treasury, 7 3/4%, 11/30/99 30,000,000 32,016
U.S. Treasury, 7 1/2%, 1/31/97 30,000,000 30,750
----------
Total 294,040
----------
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
FINANCE COMPANIES (1.6%)
Associates Corp. of North America,
6 7/8%, 1/15/97 $ 7,800,000 $ 7,875
Associates Corp. of North America,
5 1/4%, 9/1/98 7,000,000 6,789
Avco Financial Services Inc.,
5 7/8%, 10/15/97 6,800,000 6,751
Ford Motor Credit Company,
6 1/4%, 2/26/98 300,000 300
Ford Motor Credit Company,
5 5/8%, 3/3/97 9,000,000 8,917
----------
Total 30,632
----------
FINANCIAL SERVICES (2.2%)
Beneficial Corp, 6.86%,
11/19/97 7,800,000 7,892
Beneficial Corp, 9 3/8%,
7/28/97 5,000,000 5,293
Ford Motor Credit Grantor
Trust,
7.3%, 10/15/99 5,643,730 5,733
General Motors Acceptance
Corp.,
8 3/8%, 5/1/97 3,000,000 3,098
General Motors Acceptance
Corp.,
5 1/2%, 10/15/02 10,751,000 11,765
General Motors Corporation,
8.8%, 3/1/21 6,500,000 7,406
----------
Total 41,187
----------
FOODS (0.6%)
Nabisco Inc., 8%, 1/15/00 3,500,000 3,679
RJR Nabisco Inc., 8 5/8%,
12/1/02 8,000,000 8,408
----------
Total 12,087
----------
FOREIGN GOVERNMENT BONDS (0.4%)
Province of Manitoba, 7 3/4%,
7/17/16 8,000,000 8,408
----------
LEISURE RELATED (0.4%)
Time Warner Entertainment Inc.,
8 7/8%, 10/1/12 1,500,000 1,598
Time Warner Entertainment Inc.,
7 1/4%, 9/1/08 6,300,000 6,002
----------
Total 7,600
----------
MEDIA (0.6%)
Tele-Communications, Inc.,
7 3/8%, 2/15/00 8,000,000 8,038
Tele-Communications, Inc.,
7 7/8%, 8/1/13 3,000,000 2,775
----------
Total 10,813
----------
MUNICIPAL BONDS (0.2%)
Government Trust-Greece,
8%, 5/15/98 3,310,176 3,388
----------
OFFICE EQUIPMENT (0.4%)
International Business
Machines, 6 3/8%, 11/1/97 7,000,000 7,033
----------
PRINTING & PUBLISHING (0.3%)
News America Holdings Inc.,
7 1/2%, 3/1/00 6,500,000 6,632
----------
</TABLE>
76
<PAGE> 80
NORTHWESTERN MUTUAL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1995
<TABLE>
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
BONDS (CONTINUED)
TOBACCO (0.3%)
Philip Morris Companies,
9 1/4%, 2/15/00 $ 2,100,000 $ 2,317
Philip Morris Companies,
7 1/4%, 1/15/03 3,000,000 3,052
----------
Total 5,369
----------
UTILITY-ELECTRIC (3.6%)
Long Island Lighting Co., 7%,
3/1/04 10,000,000 8,922
Pacific Gas & Electric Co.,
7 1/4%, 3/1/26 9,050,000 8,654
Pacific Gas & Electric Co.,
5 3/8%, 8/1/98 5,000,000 4,851
Pacific Gas & Electric Co.,
6 3/4%, 10/1/23 6,400,000 5,748
PECO Energy Company, 7 1/2%,
1/15/99 4,250,000 4,362
PECO Energy Company, 7 3/4%,
3/1/23 8,850,000 8,799
Public Service Electric & Gas,
6 1/8%, 8/1/02 9,000,000 8,675
Texas Utilities Electric Co.,
9.39%, 11/21/96 250,000 260
Texas Utilities Electric Co.,
7 7/8%, 3/1/23 7,750,000 7,803
UNICOM Corp., 6 1/2%, 4/15/00 10,600,000 10,503
----------
Total 68,577
----------
Total Bonds 651,848
----------
MONEY MARKET INVESTMENTS (17.2%)
BEVERAGES (1.0%)
Anheuser-Busch Companies Inc.,
5.90%, 7/14/95 $20,000,000 $ 19,957
----------
CHEMICALS (0.5%)
W.R. Grace & Co., 6 1/2%,
12/1/95 10,300,000 10,310
----------
ELECTRICAL EQUIPMENT (1.1%)
Emerson Electric Co, 5.93%,
7/17/95 20,000,000 19,947
----------
FEDERAL GOVERNMENT AND AGENCIES (0.4%)
+U.S. Treasury, 5.65%, 7/6/95 4,000,000 3,997
U.S. Treasury, 5.4%, 12/21/95 4,000,000 3,891
----------
Total 7,888
----------
<CAPTION>
MARKET
VALUE
PAR (000'S)
----------- ----------
<S> <C> <C>
FINANCE COMPANIES (2.7%)
AT&T Capital Corp., 5.86%,
7/21/95 $25,700,000 $ 25,616
Ford Motor Credit Company,
5.94%, 7/12/95 25,000,000 24,955
----------
Total 50,571
----------
FINANCIAL SERVICES (3.0%)
American General Finance Corp.,
8 7/8%, 3/15/96 6,050,000 6,162
American Telephone & Telegraph,
5.92%, 7/14/95 25,000,000 24,946
General Electric Capital Corp.,
5.95%, 7/7/95 15,500,000 15,485
Transamerica Financial Corp.,
8.55%, 6/15/96 10,950,000 11,136
----------
Total 57,729
----------
FOODS (2.2%)
Cargill Incorporated, 6.1%,
7/3/95 20,700,000 20,693
H.J. Heinz Company, 5.86%,
7/13/95 21,600,000 21,558
----------
Total 42,251
----------
RETAIL-GENERAL (1.1%)
J.C. Penney Company, Inc.,
5.92%, 7/24/95 20,000,000 19,925
----------
SOAPS & TOILETRIES (3.4%)
Colgate-Palmolive Co., 5.89%,
7/11/95 22,000,000 21,964
Colgate-Palmolive Co., 5.92%,
8/7/95 43,500,000 43,236
----------
Total 65,200
----------
TELECOMMUNICATIONS (0.4%)
U S West Capital Funding Inc.,
8.99%, 11/14/95 7,850,000 7,933
----------
TOBACCO (1.4%)
Philip Morris Companies, Inc.,
5.94%, 7/14/95 26,700,000 26,643
----------
Total Money Market Investments 328,354
----------
Total Investments $1,905,307
=========
</TABLE>
* Non-Income Producing
+ Partially held by the custodian in a segregated account as collateral for open
financial futures positions. Information regarding open futures contracts as
of June 30, 1995 is summarized below:
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
NUMBER OF OF CONTRACTS EXPIRATION APPRECIATION
ISSUER CONTRACTS (000'S) DATE (000'S)
-------------------- --------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
S&P 500 Stock Index 326 89,185 September 1995 1,393
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
77
<PAGE> 81
---------------
THIS PAGE INTENTIONALLY
LEFT BLANK
---------------
78
<PAGE> 82
---------------
THIS PAGE INTENTIONALLY
LEFT BLANK
---------------
<PAGE> 83
<TABLE>
<S><C>
TO: / / Annuity Services Division - Policy Benefits Department (Individual IRA & Non-Tax [NORTHWESTERN MUTUAL LIFE LOGO]
Qualified/Personal) FAX - 414-299-2632
/ / Employer Product Services Division - Policyowner Services Department (Group Billing-
Corporate, Pension, HR10, TDA & SEP) FAX - 414-299-5123
DEFERRED VARIABLE ANNUITY - TRANSFER OR ALLOCATION CHANGE
1. CONTRACT INFORMATON
Contract No._________________________________Annuitant________________________________________________________
Please Print
2. TRANSFER EXISTING BALANCES
The minimum amount that may be transferred from any investment division is $100 or all of the units in that
division, whichever is less. If you want to transfer the entire division, indicate "ALL."
TRANSFER FROM: TRANSFER TO:
NUMBER OF
ACCUMULATION PERCENT (WHOLE)
INVESTMENT DIVISION DOLLAR AMOUNT UNITS DOLLAR AMOUNT PERCENTS ONLY
1. Select Bond $_____________ ______________ $_____________ _______________%
2. International Equity $_____________ ______________ $_____________ _______________%
3. Money Market $_____________ ______________ $_____________ _______________%
4. Balanced $_____________ ______________ $_____________ _______________%
5. Index 500 Stock $_____________ ______________ $_____________ _______________%
6. Aggressive Growth Stock $_____________ OR ______________ $_____________ OR _______________%
7. High Yield Bond* $_____________ ______________ $_____________ _______________%
8. Growth Stock* $_____________ ______________ $_____________ _______________%
9. Growth and Income Stock* $_____________ ______________ $_____________ _______________%
TOTAL $_____________ N/A $_____________ 100%
Special Instructions:_________________________________________________________________________________________
______________________________________________________________________________________________________________
3. CHANGE ALLOCATION OF FUTURE INVESTMENTS:
Future investments will continue to be allocated as they were prior to the transfer shown above, unless new
instructions are given below: Please indicate in whole percents only, for a total of 100%.
1. Select Bond _____% 4. Balanced _____% 7. High Yield Bond* _____%
2. International Equity _____% 5. Index 500 Stock _____% 8. Growth Stock* _____%
3. Money Market _____% 6. Aggressive Growth Stock _____% 9. Growth and Income Stock*_____%
*NOT AVAILABLE TO THE FOLLOWING CONTRACTS: JJ SERIES, KK SERIES, LL SERIES "OLD ACCOUNT 1," AND ALL CONTRACTS
ISSUED IN NML SEPARATE ACCOUNT C.
4. EFFECTIVE DATE:
This transfer and/or allocation of future investments shall be effective on ________________ (insert specific date
if desired). If no date is specified, or if this form is not received at NML's Home Office (see address on reverse
side) on or prior to 3:00 p.m. Central time on that date, this transfer shall be effective on the date this form is
received (complete and signed) at NML's Home Office.
5. SIGNATURES OF OWNER(S)/TRUSTEE REQUIRED (TITLE MUST BE INCLUDED):
________________________________________________________________ Date signed_______________________________________
________________________________________________________________ Date signed_______________________________________
Owner's Daytime No. ( )______________________________
FOR AGENT'S USE ONLY
/ / Instructions for this transfer were LINKed on ____________________________ (date).
GA No. ________________ Agent No. _____________________
(See over for FAX/LINK Instructions)
</TABLE>
<PAGE> 84
HOW TO SUBMIT THIS FORM
FIRST CLASS MAIL
Please mail form to Northwestern Mutual Life, Annuity Services/Employer Product
Services, P. O. Box 2099, Milwaukee, Wisconsin 53202-2099. See Section 4
(other side) for effective date.
FAX
The completed/signed transfer/change of allocation form may be FAXed to the
Home Office at the numbers provided at the top of the form (other side). The
original transfer form is not needed. Please keep for your records. See
Section 4 (other side) for effective date.
LINK
NML Agents only: If timing is critical and FAX equipment is unavailable, the
transfer/change of allocation request may be LINKED to the Home Office. You
MUST have a completed, signed transfer form in your possession. The original
signed transfer form must be received in the Home Office within five (5)
working days from the date of the LINK. The effective date will be the date
that the LINK is received in the Home Office. Be sure to complete the "Agent's
Use Only" box at the bottom of the form.
SIGNATURE INSTRUCTIONS
SIGNATURE BY OWNER
All Owners must sign name as it appears in the policy contract. If the Owner's
name has changed since the policy was issued, he/she should add his/her present
surname to his/her name as it appears in the policy contract.
SIGNATURE BY ASSIGNEE
If the signer of the form is an assignee and the assignee is a bank, savings
and loan association, other financial institution or corporation, an officer
must sign with his/her title. Name of corporate entity must appear above the
signature.
SIGNATURE ON BEHALF OF CORPORATION
If the signer of the form is a corporation, an officer of the corporation must
sign on behalf of the corporation with his/her title. The name of the
corporation must appear above the signature.
SIGNATURE ON BEHALF OF PARTNERSHIP
If the signer of the form is a partnership, the name of the partnership must
appear above the signature. A partner other than the Annuitant must sign.
SIGNATURE ON BEHALF OF TRUST
If the signer of the form is a Trust, the authorized Trustee must sign his/her
name, followed by the word "Trustee." The name of the Trust must appear above
the signature.
