[GRAPHIC OMITTED]
August 1997
ACC00001 (8/97)
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T A B L E O F C O N T E N T S
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PAGE
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Chairman's Letter ................................. 1
WRL SERIES FUND, INC.
Portfolio Manager's Commentary:
Money Market Portfolio ........................... 2
Bond Portfolio ................................. 3
Growth Portfolio ................................. 4
Short-to-Intermediate Government Portfolio ...... 5
Global Portfolio ................................. 6
Strategic Total Return Portfolio ............... 7
Emerging Growth Portfolio ........................ 8
Aggressive Growth Portfolio ..................... 9
Balanced Portfolio .............................. 10
Growth & Income Portfolio ........................ 11
Tactical Asset Allocation Portfolio ............ 12
C.A.S.E. Growth Portfolio ........................ 13
Global Sector Portfolio ........................ 14
Value Equity Portfolio ........................... 15
International Equity Portfolio .................. 16
U.S. Equity Portfolio ........................... 18
Schedule of Investments:
Money Market Portfolio ........................... 19
Bond Portfolio ................................. 21
Growth Portfolio ................................. 23
Short-to-Intermediate Government Portfolio ...... 26
Global Portfolio ................................. 28
Strategic Total Return Portfolio .................. 33
Emerging Growth Portfolio ........................ 36
Aggressive Growth Portfolio ..................... 41
Balanced Portfolio .............................. 43
Growth & Income Portfolio ........................ 46
Tactical Asset Allocation Portfolio ............ 49
C.A.S.E. Growth Portfolio ........................ 52
Global Sector Portfolio ........................... 54
Value Equity Portfolio ........................... 57
International Equity Portfolio .................. 59
U.S. Equity Portfolio ........................... 64
Statements of Assets and Liabilities ............ 69
Statements of Operations ........................ 72
Statements of Changes in Net Assets ............... 75
Financial Highlights .............................. 80
Notes to Financial Statements ..................... 87
</TABLE>
THE PORTFOLIOS OF THE WRL SERIES FUND, INC. ARE MADE AVAILABLE THROUGH
VARIABLE LIFE INSURANCE, VARIABLE ANNUITY, AND GROUP ANNUITY PRODUCTS ISSUED
BY WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO AND ITS AFFILIATES. THE
AVAILABILITY OF CERTAIN PORTFOLIOS MAY VARY FROM PRODUCT TO PRODUCT.
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FELLOW CONTRACT AND POLICY OWNERS:
[PHOTO]
JOHN R. KENNEY
CHAIRMAN OF THE BOARD
RATIONAL EXUBERANCE?
IT WAS JUST OVER SIX MONTHS AGO - THE DOW JONES INDUSTRIAL AVERAGE WAS AROUND
6400 - WHEN ALAN GREENSPAN WONDERED ALOUD ABOUT ESCALATED ASSET VALUES AND THE
POSSIBILITY OF PROLONGED CONTRACTIONS. HE WAS SOMEWHAT BOTHERED, IT SEEMED,
THAT STOCKS HAD BECOME OVERVALUED AND WERE RIPE FOR A FALL.
OF COURSE, WHEN THE CHAIRMAN OF THE FEDERAL RESERVE BOARD OFFERS UP AN OPINION
ON THE FINANCIAL MARKETS, IT'S MUCH MORE THAN JUST A CASUAL OBSERVATION. HE
HAS, AFTER ALL, THE LARGEST ECONOMIC RESEARCH STAFF IN THE WORLD AT HIS
DISPOSAL. HE HAS ALSO, BY VIRTUE OF HIS POSITION, A NEAR SINGULAR ABILITY TO
MAKE SELF-FULFILLING PROPHESIES. BUT MR. GREENSPAN, EVEN WITH THE ENORMOUS
WEIGHT OF HIS OFFICE BEHIND HIM, STILL COULD NOT CALL THE STOCK MARKET. BY THE
END OF JUNE, THE DOW HAD CLIMBED TO 7672.79 - ALMOST 1300 POINTS HIGHER THAN
WHEN THE FED CHIEF ISSUED HIS OMINOUS COMMENTS.
THE POINT IS, MAKING SHORT-TERM CALLS ON THE STOCK MARKET IS A TOUGH GAME, EVEN
FOR THE MOST GIFTED. FOR MOST OF US, WORRYING ABOUT MARKET SWINGS IS, AT BEST,
PROBLEMATIC; AT WORST, IT'S A WASTE OF TIME AND PROBABLY MONEY.
TO BE SURE, THINGS LIKE PRICE-TO-EARNINGS RATIOS AND DIVIDEND YIELDS ARE AT
LEVELS THAT COULD, BY CONVENTIONAL WISDOM, SPELL TROUBLE. BUT THE FACT IS THAT
BY TRADITIONAL MEASURES STOCKS HAVE LOOKED OVERVALUED FOR QUITE A WHILE, AND
PRICES HAVE CLIMBED STEADILY NONETHELESS - THE DOW GAINING IN EXCESS OF 15% IN
THREE MONTHS, OVER 100% IN THREE YEARS, AND MORE THAN 180% SINCE THE START OF
1991.
BY OUR LIGHTS, IT SEEMS THAT INVESTORS HAVE BEEN QUITE RATIONAL IN BIDDING UP
PRICES. TAKING INTO ACCOUNT SUCH THINGS AS THE NEAR ABSENCE OF INFLATION, VAST
NEW MARKETS IN THE POST-COMMUNIST WORLD, AND THE GLOBAL CLOUT OF U.S.
CORPORATIONS, THIS HAS BEEN A PERIOD OF BROAD PROSPERITY AND ENORMOUS
ADVANCEMENT. IN FACT, EARNINGS HAVE BEEN SO STRONG RECENTLY THAT, DESPITE THEIR
LOFTY LEVELS, THE RATIO OF STOCK PRICES TO COMPANY EARNINGS IS ACTUALLY LOWER
NOW THAN IT WAS A FEW YEARS AGO.
THEREIN, OF COURSE, AMONGST ALL OF THAT REWARD, LIES THE RISK. WE CAN NOT
FORGET THAT PRICES MOVE BOTH WAYS. GIVEN THE POTENTIAL VOLATILITY OF A MARKET
THAT HAS DOUBLED IN JUST THREE YEARS, THIS IS ONE OF THOSE TIMES WE SHOULD BE
THINKING A LOT ABOUT LONG-TERM CONCEPTS AND DECIDING JUST HOW THEY SHOULD BE
TAILORED TO OUR INDIVIDUAL SITUATIONS. AN INVESTOR WITH REALISTIC EXPECTA-
TIONS ABOUT RESULTS WILL BE PREPARED FOR THE MARKET'S INEVITABLE VOLATILITY AND
WILL BE LESS LIKELY TO PANIC WHEN IT DOES TUMBLE. AS A RESULT, HE OR SHE IS
MUCH MORE LIKELY TO STICK WITH AN APPROPRIATE INVESTMENT PLAN OVER THE LONG
HAUL.
WHEN IT COMES TO INVESTING, THERE ARE ONLY TWO IMPORTANT MISTAKES WE CAN MAKE:
FALLING VICTIM TO THE EMOTION OF FEAR, OR FALLING VICTIM TO THE EMOTION OF
GREED. WE SET OURSELVES UP TO DEAL WITH THESE EMOTIONS BASED ON WHAT WE DO AT
THE PRECEDING MARKET TURNING POINT.
GIVEN THAT THE MARKETS ARE DRIVEN BY HUMAN EMOTIONS, THEY CAN OFTEN GO TO
INCREDIBLE EXTREMES. THAT'S WHY, THROUGHOUT IT ALL, A PROFESSIONAL MONEY
MANAGER'S DISCIPLINE IS TO BE PRIZED BY THE INVESTOR SEEKING TO DEFEND AGAINST
VOLATILITY. AND A TRULY BALANCED INVESTMENT PLAN CAN ONLY BE BUILT ON THE BACKS
OF MANAGERS WHO RUN ON DIFFERENT CYCLES. ON THE FOLLOWING PAGES, THE WRL SERIES
FUND PORTFOLIO MANAGERS DISCUSS HOW THEY HAVE RESPONDED TO THIS PERIOD'S
CHANGES, WHERE THEY'VE INVESTED THEIR RESPECTIVE PORTFOLIO'S ASSETS, AND WHY.
WE ENCOURAGE YOU TO REVIEW THESE REPORTS TO BETTER UNDERSTAND YOUR INVESTMENT
AND ITS PERFORMANCE.
NOTE, TOO, THE ADDITION OF TWO NEW PORTFOLIOS TO THE WRL SERIES FUND - THE
INTERNATIONAL EQUITY PORTFOLIO, CO-MANAGED BY GE INVESTMENT MANAGEMENT
INCORPORATED AND SCOTTISH EQUITABLE INVESTMENT MANAGEMENT LIMITED, AND THE U.S.
EQUITY PORTFOLIO, MANAGED BY GE INVESTMENT MANAGEMENT INCORPORATED. BOTH
COMMENCED OPERATIONS JANUARY 2, 1997. THE COMMENTS FROM THESE NEW PORTFOLIO'S
TALENTED MANAGERS SHOULD PROVIDE AN INSIGHT INTO THEIR APPROACHES AND
INDIVIDUAL STYLES OF MONEY MANAGEMENT.
AS WE LOOK FORWARD TO THE REST OF THIS YEAR, THERE ARE GOOD AND COMPELLING
REASONS TO BE OPTIMISTIC ABOUT THE FINANCIAL MARKETS. THIS IS STILL THE
GREATEST INVESTMENT STORY EVER TOLD. BUT NO MATTER WHAT THE MARKET DOES, OR
WHEN, WE WILL DO OUR BEST TO PROVIDE YOU WITH SOLID, WELL-MANAGED PRODUCTS AND
SUPERIOR SERVICE. WE RESPECT YOUR PERSONAL TASK OF FINANCIAL PLANNING AND
GENUINELY APPRECIATE THE OPPORTUNITY TO ASSIST.
SINCERELY YOURS,
[Insert Kenney Sig.]
JOHN R. KENNEY
CHAIRMAN OF THE BOARD
1
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WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
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[Insert Graph]
ECONOMIC GROWTH IN THE SECOND QUARTER SLOWED FROM THE TORRID 5.9% PACE OF THE
FIRST QUARTER. SPURRED ON BY A POTENTIAL INCREASE IN INFLATION SIGNALED BY A
STRONG U.S. ECONOMY AND A HISTORICALLY TIGHT LABOR MARKET, THE FEDERAL RESERVE
FINALLY OBLIGED THE MARKET DURING THE LAST WEEK OF THE FIRST QUARTER WITH AN
INCREASE IN THE OVERNIGHT RATE FROM 5.25% TO 5.50%. DURING THE SECOND QUARTER,
HOWEVER, SLOWER GROWTH COMBINED WITH BENIGN INFLATION ALLOWED THE FEDERAL
RESERVE BOARD TO REFRAIN FROM ADDITIONAL TIGHTENING OF MONETARY POLICY. MARKETS
REACTED FAVORABLY TO THE COMBINATION OF SOLID GROWTH, LOW UNEMPLOYMENT, AND
BENIGN INFLATION DURING THE SECOND QUARTER.
DURING THE FIRST QUARTER, THE PORTFOLIO ACHIEVED YIELD PICK-UP THROUGH TACTICAL
ALLOCATIONS IN THE JAPANESE BANK CD MARKET AS YIELDS IN THAT MARKET WERE ONCE
AGAIN ATTRACTIVE. PERFORMANCE WAS ALSO ENHANCED DURING THE SECOND QUARTER BY
ACTIVE DURATION MANAGEMENT AND ALLOCATIONS TO SHORT-TERM ASSET-BACKED
INSTRUMENTS AND LONGER-TERM AGENCY SECURITIES. THE PORTFOLIO'S AVERAGE LIFE WAS
MANAGED WITHIN THE 50 TO 60 DAY RANGE AS THIS PART OF THE YIELD CURVE OFFERED
MORE ATTRACTIVE YIELDS.
WE CONTINUE TO MAINTAIN THE CONSENSUS VIEW THAT THERE WILL BE A THIRD QUARTER
BOUNCE-BACK IN GROWTH AS THE ECONOMY CONTINUES TO BE FUNDAMENTALLY STRONG. IN
ADDITION, OUR VIEW REMAINS CAUTIOUS WITH FINAL DEMAND NOT LIKELY TO CAPITULATE
AS JOBS ARE PLENTIFUL, CONFIDENCE APPEARS STRONG, AND CONSUMER CREDIT GROWTH IS
STABLE. CONSEQUENTLY, WE PLAN TO REDUCE THE PORTFOLIO'S AVERAGE LIFE TO THE
40-50 DAY RANGE GIVEN OUR EXPECTATION THAT THE FED WILL INTERVENE BEFORE
YEAR-END.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
ROBERT R. JOHNSON
MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER
Past performance does not guarantee future results.
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.
2
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. BOND PORTFOLIO
AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
[INSERT GRAPH]
LATE IN THE PERIOD, THE BOND MARKET RESPONDED FAVORABLY TO SIGNS OF SLOWER
ECONOMIC GROWTH AND TO THE FEDERAL RESERVE BOARD'S DECISION IN MAY TO LEAVE
INTEREST RATES UNCHANGED. WITH A RESPECTABLE GAIN IN THE SECOND QUARTER, THE
PORTFOLIO CLOSED THE SIX MONTH PERIOD ENDED JUNE 30, 1997 WITH A RETURN OF
1.90%. FOR THE SAME PERIOD, THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
RETURNED 2.73%.
DURING THE SECOND QUARTER, BONDS RALLIED AS ECONOMIC NEWS BEGAN TO INDICATE THE
ECONOMY WAS SLOWING FROM ITS GROWTH SPURT IN THE FIRST QUARTER, WHEN ANNUALIZED
GROSS DOMESTIC PRODUCT (GDP) APPROACHED 6%. ASSUMING A GDP RATE OF 2%-2.5% IS A
MORE SUSTAINABLE RATE FOR OUR ECONOMY, ANY FASTER GROWTH CARRIES WITH IT THE
RISK OF HIGHER INFLATION. NEVERTHELESS, INFLATION HAS REMAINED DORMANT
THROUGHOUT THE YEAR, AND A SOFTENING IN THE RETAIL, AUTO, AND HOUSING MARKETS,
COUPLED WITH A SIGNIFICANT DOWNTURN IN COMMODITY PRICES, SUGGESTED INFLATION
WOULD CONTINUE TO REMAIN BENIGN GOING FORWARD. AS A RESULT, THE YIELD ON THE
BENCHMARK 30-YEAR TREASURY BOND DROPPED FROM 6.96% TO 6.78% AND HEADED EVEN
LOWER AFTER THE QUARTER ENDED. THE FEDERAL RESERVE BOARD APPEARED TO ENDORSE
THE MODERATE-GROWTH SCENARIO WHEN IT LEFT INTEREST RATES STEADY AT ITS MAY
MEETING, DESPITE A TIGHT EMPLOYMENT AND WAGE PICTURE, AND A SOARING STOCK
MARKET. ONCE AGAIN, LACK OF INFLATIONARY PRESSURES PROVED TO BE THE KEY.
THE COMBINATION OF MODERATE GROWTH AND LOW INTEREST RATES IS IDEAL FOR
FINANCIAL MARKETS. IN THIS ENVIRONMENT, OUR INVESTMENT-GRADE AND TREASURY
HOLDINGS REGISTERED GOOD RETURNS. OUR TREASURIES APPRECIATED AS INTEREST RATES
DECLINED, WHILE OUR HIGH-QUALITY CORPORATE BONDS REACTED POSITIVELY NOT ONLY TO
THE RATE DECLINE BUT ALSO TO GOOD DEMAND FOR CORPORATE CREDITS, DESPITE A
PLENTIFUL SUPPLY OF NEW ISSUES. AMONG OUR INVESTMENT-GRADE BONDS, WE ARE
ESPECIALLY POSITIVE ON LARGE BANKS AND INDUSTRIAL COMPANIES.
THERE ARE A NUMBER OF LONG-TERM BULLISH ECONOMIC TRENDS FOR THE FIXED-INCOME
MARKET. TO BE SURE, LOW INFLATION IS THE MOST SIGNIFICANT, BUT THE CURRENT
BUDGET PROCESS IN WASHINGTON IS ALSO POSITIVE. IF DEFICIT REDUCTION DOES INDEED
BECOME A SECULAR REALITY, WE COULD SEE SIGNIFICANTLY LOWER TREASURY ISSUANCE AS
THE U.S. PAYS DOWN ITS DEBT. AND IF SUPPLY BEGINS TO DECREASE AND DEMAND
REMAINS STRONG, RATES COULD GO MUCH LOWER AS BUYERS BID UP PRICES. THIS IS A
"WILD CARD" IN THE OVERALL PICTURE, BUT THE POSSIBILITIES ARE TANTALIZING. IN
THE MEANTIME, BONDS SHOULD PERFORM WELL UNLESS THE ECONOMY PICKS UP STEAM. ANY
SIGNIFICANT SIGN OF FASTER GROWTH, HOWEVER, COULD CHILL OUR INTEREST RATE
OPTIMISM. BUT NO MATTER HOW INTEREST RATES CHANGE, WE CONTINUE TO BELIEVE OUR
FLEXIBLE INVESTMENT APPROACH IS A GOOD STRATEGY FOR HANDLING SURPRISES,
CONSTRUCTIVE OR OTHERWISE.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
RONALD V. SPEAKER SANDY R. RUFENACHT
BOND PORTFOLIO
CO-PORTFOLIO MANAGERS
On January 13, 1997, Mr. Speaker settled a Securities and Exchange Commission
administrative action involving two personal trades made by him in January of
1993. Without admitting or denying fault, Mr. Speaker agreed to a civil money
penalty, disgorgement of profits, and interest payments totaling $37,199, and
to a 90-day suspension starting on or about January 27, 1997.
This material must be preceded or accompanied by the Fund's
current prospectus.
3
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. GROWTH PORTFOLIO
AND THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
[INSERT GRAPH]
THE PERIOD ENDED ON A VERY STRONG NOTE WITH THE SECOND QUARTER PROVING TO BE
THE STRONGEST QUARTER FOR STOCKS SINCE EARLY 1987. ALTHOUGH LARGE STOCKS
CONTINUED TO LEAD THE MARKET DURING THE QUARTER, SMALL- AND MEDIUM-SIZED
COMPANIES ALSO PARTICIPATED IN THE UPTREND. MANY OF THESE STOCKS HAD BEEN
MORIBUND FOR ROUGHLY A YEAR, AS INVESTORS INSTEAD PILED INTO THE BIG, LIQUID
NAMES THAT COULD BE EXITED QUICKLY.
OUR BARBELL STRATEGY PAID GENUINE DIVIDENDS AND PRODUCED VERY RESPECTABLE
RETURNS IN THE FACE OF TOUGH COMPETITION FROM THE S&P 500. FOR THE SIX MONTH
PERIOD ENDED JUNE 30, 1997, THE GROWTH PORTFOLIO RETURNED 11.51%. THE S&P 500,
BY COMPARISON, GAINED 20.61% FOR THE SAME PERIOD. MANY OF THE STOCKS WE OWNED
WHEN PERFORMANCE WAS MEDIOCRE TURNED INTO TOP PERFORMERS ONCE MARKET PSYCHOLOGY
SHIFTED. AS THE FAMOUS INVESTOR WARREN BUFFET HAS OFTEN SAID, IN THE SHORT RUN
THE MARKET IS A VOTING MACHINE, BUT IN THE LONG RUN IT IS A WEIGHING MACHINE,
MEANING THAT OVER TIME THE "WEIGHT" OF EARNINGS WILL ULTIMATELY DETERMINE THE
LEVEL OF STOCK PRICES.
THE GROWTH PORTFOLIO STILL CONTAINS SIGNIFICANT POSITIONS IN SEVERAL BROAD
CATEGORIES, INCLUDING FINANCIAL, TECHNOLOGY, TELECOMMUNICATIONS,
PHARMACEUTICALS, HEALTH CARE, AND RETAILERS. THESE ARE AREAS WHERE EARNINGS
GROWTH IS MOST DYNAMIC. I ALSO ADDED A SMALL ENERGY COMPONENT DURING THE SECOND
QUARTER BECAUSE I AM BECOMING MORE CONVINCED THAT DEMAND IS GROWING AT A
TREMENDOUS RATE AND VALUATIONS AMONG ENERGY STOCKS, ESPECIALLY THE OIL SERVICE
STOCKS, ARE STILL FAIRLY REASONABLE.
AMONG OUR TECHNOLOGY STOCKS, MICROSOFT CORPORATION, DELL COMPUTER CORPORATION,
CISCO SYSTEMS, INC., AND LUCENT TECHNOLOGIES, INC. WERE ALL STANDOUTS. OUR DRUG
STOCKS ALSO PRODUCED GOOD RETURNS THIS QUARTER, WARNER-LAMBERT COMPANY AND ELI
LILLY & COMPANY IN PARTICULAR.
DURING THE QUARTER, I TOOK PROFITS IN NIKE, INC. WHEN EARNINGS GROWTH BEGAN TO
SLOW, AND REDUCED OUR POSITION IN WELLS FARGO & COMPANY SLIGHTLY AFTER IT
BECAME CLEAR THE INTEGRATION OF FIRST INTERSTATE WOULD TAKE LONGER THAN WE
EXPECTED. I ALSO TRIMMED PARAMETRIC TECHNOLOGY COMPANY, A LARGE DEVELOPER OF
COMPUTER-AIDED DESIGN AND MANUFACTURING SOFTWARE, AT A LOSS. SALES WERE SLOWING
IN THE JAPANESE MARKET, AND IT BECAME APPARENT THAT DASSAULT SYSTEMS, A FRENCH
COMPETITOR, WAS DOING A GOOD JOB THERE.
AS WE ENTER THE THIRD QUARTER, VOLATILITY COULD BECOME THE NAME OF THE GAME FOR
STOCKS. THE KEY, OF COURSE, IS INTEREST RATES. IF WE CANNOT CONTINUE TO OFFSET
WAGE PRESSURE WITH INCREASED OPERATING EFFICIENCIES, WE COULD SEE A PICK-UP IN
INFLATION AND A RISE IN RATES. THE LABOR MARKET IN THE U.S. IS TIGHT, AND THERE
IS A QUESTION AS TO HOW INTERCHANGEABLE OVERSEAS LABOR IS WITH THAT IN THE
U.S., ESPECIALLY IN HIGHLY SKILLED POSITIONS. A TIGHT LABOR MARKET AFFECTS
COMPANIES' PROFITABILITY ON A MICRO-LEVEL AND AFFECTS THE ECONOMY ON A
MACRO-LEVEL. BUT ABSENT SIGNIFICANT WAGE PRESSURES, I THINK THE FINANCIAL
MARKETS SHOULD CONTINUE TO MAKE PROGRESS, ESPECIALLY IF EARNINGS REMAIN ROBUST.
OUR BARBELL STRATEGY IS DESIGNED TO ALLOW US GOOD PARTICIPATION IN THE MARKET'S
GAINS, WHILE MITIGATING DOWNSIDE RISK IF WE GET ANY NEGATIVE SURPRISES.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
SCOTT W. SCHOELZEL
GROWTH PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
4
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WRL SERIES FUND, INC.
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC.
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO AND THE MERRILL LYNCH 1-10 YEAR
GOVERNMENT BOND INDEX
[INSERT GRAPH]
INTEREST RATES FLUCTUATED THROUGHOUT THE FIRST SIX MONTHS OF 1997 AS THE MARKET
ATTEMPTED TO ASSESS THE STRENGTH OF THE ECONOMY, DETERMINE THE EXTENT OF
INFLATION CONCERNS (INCLUDING WAGE PRESSURES), AND PREDICT POTENTIAL FEDERAL
RESERVE BOARD ACTION. IN FACT, THE FED TIGHTENED MONETARY POLICY IN LATE MARCH
WITH A 25-BASIS-POINT INCREASE IN THE FED FUND TARGET RATE TO 5.50%, THE FIRST
POLICY ACTION SINCE AN EASING IN JANUARY 1996. THE INTEREST RATE ENVIRONMENT IN
THE FIRST HALF OF 1997 RESULTED IN BOND PRICE DECLINES BEING SLIGHTLY GREATER
THAN COUPON RETURNS, AND THE GENERAL BOND MARKET PERFORMANCE RELATIVELY WEAK
COMPARED TO EQUITY MARKET RETURNS.
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997, THE SHORT-TO-INTERMEDIATE
GOVERNMENT PORTFOLIO RETURN OF 2.51%, MODESTLY LAGGING THE 2.74% RETURN FOR OUR
BENCHMARK, THE MERRILL LYNCH 1-10 YEAR GOVERNMENT BOND INDEX. THIS PERFORMANCE
WAS INDICATIVE OF THE GENERAL BOND MARKET AS MEASURED BY INDEXES SUCH AS THE
LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX, WHICH RETURNED
2.83% YEAR TO DATE. THE PORTFOLIO'S TOTAL RETURN OF (0.06)% FOR THE FIRST
QUARTER APPROXIMATELY MATCHED THE PERFORMANCE LEVEL OF THE BENCHMARK INDEX,
WITH THE SECOND QUARTER TOTAL RETURN OF 2.57%, ALTHOUGH STRONG ON AN ABSOLUTE
BASIS, MARGINALLY BELOW THE 2.78% RETURN OF THE INDEX.
THE PORTFOLIO'S INVESTMENT OBJECTIVE CALLS FOR AS HIGH A LEVEL OF CURRENT
INCOME AS IS CONSISTENT WITH THE PRESERVATION OF CAPITAL WHILE MAINTAINING A
MAJORITY OF HOLDINGS IN U.S. GOVERNMENT SECURITIES. THIS CONSERVATIVE
ORIENTATION LIMITS THE NUMBER OF OPTIONS AVAILABLE TO ENHANCE PERFORMANCE.
RETURNS WERE IMPROVED SOMEWHAT, HOWEVER, BY INCREMENTAL YIELDS FROM ALLOCATIONS
TO SPREAD PRODUCT SUCH AS HIGH QUALITY CORPORATE, SUPRANATIONAL, ASSET-BACKED,
AND MORTGAGE-BACKED SECURITIES. PERFORMANCE WAS ALSO ENHANCED BY KEEPING THE
DURATION SHORTER THAN THE INDEX, WHICH REDUCED THE IMPACT OF PRINCIPAL DECLINES
IN THE RISING RATE ENVIRONMENT OF THE FIRST QUARTER. OUR CONTINUED DEFENSIVE
STANCE INTO THE SECOND QUARTER, HOWEVER, HAMPERED RELATIVE PERFORMANCE AS THE
BOND MARKET RALLIED FROM APRIL THROUGH JUNE.
TRANSACTION ACTIVITY DURING THE PERIOD MAINTAINED THE PORTFOLIO'S DURATION IN A
RANGE GENERALLY BETWEEN 80% AND 100% OF THE INDEX. AT THE END OF THE PERIOD THE
PORTFOLIO'S DURATION WAS APPROXIMATELY 93% OF THE INDEX, COMPARED TO 95% AT
MARCH 31, 1997, AND 96% AT YEAR END, WHILE AVERAGE MATURITY, AT APPROXIMATELY
FOUR YEARS, RESTED NEAR THE MID-POINT OF ITS 1-7 YEAR PERMISSIBLE RANGE.
LOOKING FORWARD, THE PORTFOLIO REMAINS POSITIONED TO BENEFIT PRIMARILY FROM
INTEREST INCOME, RATHER THAN PRICE CHANGES, AND HAS THE FLEXIBILITY TO ADJUST
QUICKLY TO CHANGES FROM OUR PRESENT NEUTRAL INTEREST RATE OUTLOOK. THE MATURITY
STRUCTURE IS SOMEWHAT BIASED TOWARD A BARBELL, WHICH POSITIONS THE PORTFOLIO TO
BENEFIT FROM A FLATTENING YIELD CURVE ENVIRONMENT. OUR EXPECTATION IS FOR A
CONTINUATION OF A BROAD TRADING RANGE ENVIRONMENT, AS THE MAJOR BOND MARKET
FACTORS PRESENTLY APPEAR MIXED, WITH THE POSITIVE IMPACT OF A FAVORABLE
INFLATION BACKDROP OFFSET BY THE RISK OF A PICK-UP IN THE PACE OF ECONOMIC
ACTIVITY.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
CLIFFORD A. SHEETS JARRELL D. FREY
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO
CO-PORTFOLIO MANAGERS
This material must be preceded or accompanied by the Fund's
current prospectus.
5
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. GLOBAL PORTFOLIO
AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
[INSERT GRAPH]
GLOBAL EQUITY MARKETS MOVED PROGRESSIVELY HIGHER DURING THE PERIOD, BUT NOT
WITHOUT ADDITIONAL VOLATILITY. FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997,
THE PORTFOLIO OUTPERFORMED ITS BENCHMARK INDEX, RETURNING 16.97% VERSUS A GAIN
OF 15.61% FOR THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX. DOMESTIC
EQUITIES STAGED A DRAMATIC REBOUND DURING THE SECOND QUARTER. AS INDICATIONS OF
SLOWER U.S. ECONOMIC GROWTH BEGAN TO UNFOLD, LONG-TERM INTEREST RATES MOVED
LOWER, FURTHER BOLSTERING EQUITY VALUATIONS. INTERNATIONAL MARKETS, TOO, POSTED
GENERALLY POSITIVE RESULTS FOR THE PERIOD. AFTER A ROUGH START EARLY IN THE
YEAR, JAPANESE EQUITIES MADE STEADY PROGRESS, HELPED BY LOW INTEREST RATES AND
THE DOLLAR'S RELATIVE STRENGTH AGAINST THE YEN. MEANWHILE, EQUITY MARKETS
ACROSS EUROPE RETURNED SOLID RESULTS. THE UK MARKETS RALLIED ON THE PROSPECTS
OF LOWER INFLATION AND LONG-TERM RATES WHILE BOTH THE GERMAN AND FRENCH EQUITY
MARKETS LOGGED STEADY RESULTS, DESPITE THE UNCERTAIN FUTURE OF THE EUROPEAN
MONETARY UNION.
A MAJORITY OF THE PORTFOLIO'S ASSETS REMAIN INVESTED IN EUROPE. CURRENTLY, A
MAJOR RESTRUCTURING PROCESS IS SWEEPING ACROSS THE CONTINENT AS COMPANIES
STRIVE TO BECOME MORE COMPETITIVE IN A GLOBAL ENVIRONMENT. MORE AND MORE
COMPANIES ARE "AMERICANIZING" THEIR OPERATIONS, FOCUSING ON PROFITABILITY AND
SHAREHOLDER VALUE. THIS OFTEN INVOLVES REINVESTING CAPITAL IN A COMPANY'S MOST
PROFITABLE BUSINESS LINES WHILE DIVESTING OR SPINNING OFF THE LEAST PROFITABLE
AREAS AND "DOWNSIZING" STAFF. SOME OF OUR STOCKS OF COMPANIES UNDERGOING
RESTRUCTURING INCLUDE PHILIPS ELECTRONICS N.V., RHONE-POULENC, AND VOLKSWAGEN
AG.
DURING THE PERIOD, WE TOOK ADVANTAGE OF MARKET VOLATILITY TO TRADE SEVERAL
POSITIONS. THE EXTREME SELL-OFF IN U.S. TECHNOLOGY COMPANIES CREATED NUMEROUS
VALUATION OPPORTUNITIES, SO WE LOOKED FOR COMPANIES WITH SOLID EARNINGS. CISCO
SYSTEMS AND COMPUTER SCIENCES SEEM OVERSOLD DURING THE CORRECTION, AND OFFERED
COMPELLING VALUATIONS BASED ON THEIR EARNINGS EXPECTATIONS. BOTH QUICKLY
APPRECIATED, AND WERE SOLD WHEN THEY REACHED OUR TARGET PRICES. BRITISH-
BASED RENTOKIL INITIAL, WHICH PROVIDES INDUSTRIAL SERVICES, INCLUDING
FACILITIES CLEANING, HOSPITAL WASTE DISPOSAL, AND LANDSCAPING WAS ANOTHER
SUCCESSFUL TRADE.
WHILE MANY HOLDINGS IN THE PORTFOLIO APPRECIATED, WE DID EXPERIENCE A FEW
DISAPPOINTMENTS. AKZO NOBEL, A GERMAN CHEMICAL COMPANY, REPORTED A MILD
EARNINGS DISAPPOINTMENT, AND AS THE STOCK TRADED DOWN WE TRIMMED THE POSITION.
ADDITIONALLY, IKON OFFICE SOLUTIONS, AN OFFICE PRODUCTS SUPPLIER, WAS SOLD
AFTER REPORTING DISAPPOINTING EARNINGS.
OVERALL, I AM OPTIMISTIC ABOUT THE INVESTMENT OPPORTUNITIES AVAILABLE ABROAD.
BY STICKING TO OUR STRENGTHS AND UNDERSTANDING THE EARNINGS POTENTIAL FOR EACH
COMPANY THAT WE INVEST IN, WE CAN TAKE ADVANTAGE OF THE INEFFICIENCIES PRESENT
IN GLOBAL MARKETS, AND CAN BENEFIT FROM A DISCIPLINED INVESTMENT APPROACH BASED
ON INTENSIVE, FUNDAMENTAL ANALYSIS. ULTIMATELY, I BELIEVE WE WILL CONTINUE TO
BE REWARDED BY OWNING COMPANIES WITH STRONG EARNINGS GROWTH POTENTIAL,
REGARDLESS OF THEIR GEOGRAPHIC LOCATION.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
HELEN YOUNG HAYES
GLOBAL PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's current prospectus.
Foreign securities involve special risks described in the prospectus
that should be considered carefully before investing.
6
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (1)
PORTFOLIO MANAGERS' COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. STRATEGIC TOTAL RETURN PORTFOLIO,
THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS AND LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[INSERT GRAPH]
THE STRATEGIC TOTAL RETURN PORTFOLIO IS MANAGED USING A TOTAL RETURN APPROACH
WHICH EMPHASIZES CAPITAL APPRECIATION, INCOME GENERATION, AND REDUCTION OF
EXCESSIVE VOLATILITY. IN ORDER TO ATTAIN THE DESIRED RISK/REWARD PROFILE, THE
PORTFOLIO INVESTS IN A BLEND OF COMMON STOCKS, CONVERTIBLE SECURITIES,
GOVERNMENT AND CORPORATE BONDS, AND CASH. FOR THE SIX MONTHS ENDED JUNE 30,
1997, THE STRATEGIC TOTAL RETURN PORTFOLIO RETURNED 13.75%. BY COMPARISON, THE
STANDARD & POOR'S INDEX OF 500 COMMON STOCKS ROSE 20.61% AND THE LEHMAN
BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX RETURNED 2.83% FOR THE
SAME PERIOD. AT PERIOD'S END, THE ASSET MIX FOR THE PORTFOLIO WAS 68.1% STOCKS,
11.9% CONVERTIBLE SECURITIES, 14.3% CORPORATE BONDS, 3.9% U.S. TREASURY BONDS,
AND 1.8% CASH EQUIVALENTS.
THE FIRST HALF OF 1997 WAS A GOOD PERIOD FOR THE STRATEGIC TOTAL RETURN
PORTFOLIO TO EXHIBIT ITS ATTRACTIVENESS IN VARYING MARKET ENVIRONMENTS. THE
STOCK MARKET KICKED OFF 1997 WITH A ROBUST START BUT, IN THE FACE OF RISING
INTEREST RATES, ENDED UP POSTING A SHARP DECLINE IN THE FINAL MONTH OF THE
FIRST QUARTER. THEN, AS PRESSURE ON INTEREST RATES BEGAN TO ABATE, THE
OVERWHELMING DEMAND FACTORS THAT HAVE DOMINATED THE EQUITY MARKETS DURING MOST
OF THE 1990'S (MUTUAL FUND PURCHASES, MERGERS, SHARE REPURCHASES) KICKED INTO
HIGH GEAR AND DROVE STOCK PRICES STEADILY HIGHER INTO JUNE. THE STOCKS OF LARGE
COMPANIES CONTINUED TO DRAMATICALLY OUTPERFORM SMALLER COMPANIES AND CONSUMER,
FINANCE, HEALTHCARE, AND TECHNOLOGY STOCKS POSTED ESPECIALLY IMPRESSIVE GAINS.
ENERGY AND UTILITY STOCKS WERE LAGGARDS. INTEREST RATES OVER THE PERIOD WERE
FAIRLY VOLATILE BUT, ON JUNE 30, STOOD ONLY MODESTLY ABOVE YEAR-END 1996
LEVELS.
AS A PERCENTAGE OF ITS EQUITY INVESTMENTS, THE PORTFOLIO WAS OVERWEIGHTED IN
THREE - CONSUMER, FINANCE AND HEALTHCARE - OF THE TOP FOUR PERFORMING MARKET
SECTORS. AT THE SAME TIME, THE PORTFOLIO HAD LIMITED INVESTMENTS IN THE
LACKLUSTER COMMUNICATIONS AND UTILITY GROUPS. WE DID HAVE A SIZABLE EXPOSURE TO
THE ENERGY SECTOR WHICH DAMPENED ABSOLUTE RETURNS, BUT THE HIGH STABLE DIVIDEND
YIELDS MAKE THIS SECTOR A VALUABLE RISK-MANAGEMENT GROUP. OUR HIGH-QUALITY
CONSUMER HOLDINGS PLAYED AN IMPORTANT ROLE WITH FOUR POSITIONS GAINING AT LEAST
25% - COLGATE-PALMOLIVE COMPANY, H.J. HEINZ COMPANY, PEPSICO, INC., AND PROCTOR
& GAMBLE COMPANY. AMONG OUR MID-SIZED COMPANY INVESTMENTS, THE SHARES OF
TEMPORARY STAFFING LEADER MANPOWER ROSE DRAMATICALLY.
THE STRATEGIC TOTAL RETURN PORTFOLIO IS DEDICATED TO A DISCIPLINED PHILOSOPHY
OF CONTROLLING RISK THROUGH A BLEND OF ASSET CLASSES AND A FOCUSED SECURITY-
VALUATION METHODOLOGY. THE REWARD PORTION OF THE RISK/REWARD FORMULA IS DRIVEN
BY AN ACTIVE PURSUIT OF INVESTING IN SECURITIES OF COMPANIES WITH STRONG
BALANCE SHEETS, ESTABLISHED AND DEFENSIBLE FRANCHISES, AND CONSISTENT GROWTH
PROSPECTS. WE BELIEVE SUCH AN APPROACH IS APPROPRIATE FOR MOST PARTS OF THE
BUSINESS CYCLE INCLUDING OUR CURRENT OUTLOOK FOR MODERATE ECONOMIC GROWTH AND
LOW INTEREST RATES. OVERALL, WE THINK BY INVESTING IN A BLEND OF INCOME-
PRODUCING STOCKS AND BONDS, THE PORTFOLIO OFFERS AN ATTRACTIVE VEHICLE TO
PARTICIPATE IN THE REWARDS OF EQUITY INVESTING WHILE REDUCING EXPOSURE TO
SHORT-TERM VOLATILITY.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
LUTHER KING SCOT C. HOLLMANN
STRATEGIC TOTAL RETURN PORTFOLIO
CO-PORTFOLIO MANAGERS
(1) Prior to May 1, 1997, this Portfolio was named Equity-Income Portfolio.
This material must be preceded or accompanied by the Fund's
current prospectus.
7
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. EMERGING GROWTH PORTFOLIO
AND THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
[INSERT GRAPH]
THE EMERGING GROWTH PORTFOLIO RETURNED 8.62% FOR THE SIX MONTH PERIOD ENDED
JUNE 30, 1997. BY COMPARISON, THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
GAINED 20.61% FOR THE SAME PERIOD. INDEED, THE PORTFOLIO TRAILED MOST MAJOR
COMPARABLE INDEXES AS THE MARKET CONTINUED ITS PREFERENCE FOR LARGER,
CONSISTENT GROWTH COMPANIES RATHER THAN THE SMALL- AND MID-CAPITALIZATION HIGH
GROWTH COMPANIES IN THE PORTFOLIO.
THE INVESTMENT STYLE BEING EMPLOYED IN EMERGING GROWTH PORTFOLIO IS A "BOTTOM
UP" APPROACH WHICH FOCUSES ON STOCK SELECTION RATHER THAN "MARKET TIMING" OR
"SECTOR ROTATION." THE GOAL IS TO PICK THE BEST STOCKS IN EACH SECTOR. USUALLY
THE PORTFOLIO REMAINS FULLY INVESTED AND RISK IS CONTROLLED BY MAINTAINING A
BROADLY DIVERSIFIED LIST OF STOCKS. THIS INVESTMENT STYLE IS DESIGNED TO
DELIVER CONSISTENT RESULTS.
STOCKS ARE SELECTED BASED ON TWO KEY CRITERIA: RISING EARNINGS ESTIMATES AND
IMPROVING VALUATIONS. WE BELIEVE THESE KINDS OF COMPANIES HAVE THE POTENTAL TO
DELIVER UPSIDE EARNINGS SURPRISES. INVESTMENTS ARE MADE IN GROWTH COMPANIES IN
EACH SECTOR THAT MEET THE BUY CRITERIA.
THIS PERIOD, ALTHOUGH THE BEST PERFORMING AND WORST PERFORMING STOCKS FOR THE
PORTFOLIO CAME FROM MANY DIFFERENT SECTORS, THE BEST PERFORMING GROUP OVERALL
WAS FINANCE WHILE CONSUMER SERVICES WAS THE WORST. NO GROUP HAS ASSUMED THE
LEADERSHIP ROLE. THE BIGGEST GAINERS HELD DURING THE ENTIRE FIRST HALF WERE:
DELL COMPUTER CORPORATION, APPLIED MATERIALS, INC., COMPUWARE CORPORATION,
EVERGREEN MEDIA CORPORATION, AND MEDICIS PHARMACEUTICAL CORPORATION.
IN GENERAL, THE RELATIVE VALUATIONS OF EMERGING GROWTH STOCKS VERSUS LARGER
COMPANIES HAVE FALLEN FROM THE HIGH END TO THE LOW END OF THE TYPICAL RANGE.
LOOKING FORWARD, WHILE I BELIEVE THE EMERGING GROWTH STOCK SECTOR APPEARS
POISED FOR A REBOUND, I ALSO THINK IT HAS BECOME A STOCK PICKERS' MARKET RATHER
THAN A SECTOR BETTING MARKET, WHICH COULD BENEFIT THE EMERGING GROWTH
PORTFOLIO.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
GARY M. LEWIS
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
8
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. AGGRESSIVE GROWTH PORTFOLIO,
THE VALUE LINE (ARITHMETIC) INDEX AND THE STANDARD & POOR'S INDEX OF 500 COMMON
STOCKS
[INSERT GRAPH]
WHILE THE FIRST HALF OF 1997 PRODUCED IMPRESSIVE GAINS ACROSS THE BOARD, THE
DISCREPANCY BETWEEN THE FIRST QUARTER'S MODEST TO POOR SHOWINGS AND THE SECOND
QUARTER'S BLOCKBUSTER RESULTS DEMONSTRATED THE ROAD WAS NOT A SMOOTH ONE.
DESPITE A STRONG JANUARY, THE FIRST QUARTER WAS EXTREMELY CHALLENGING FOR
GROWTH MANAGERS AS THE TREND TOWARD BLUE-CHIP TYPE STOCKS WITH PREDICTABLE
EARNINGS CONTINUED. THIS TREND, WHICH BEGAN IN THE SECOND QUARTER OF 1996, WAS
IN RESPONSE TO THE OVERRIDING CONCERN OF INVESTORS THAT THE ECONOMY WAS GROWING
TOO QUICKLY AND WOULD TOUCH OFF A SERIES OF PREEMPTIVE STRIKES ON INFLATION BY
THE FEDERAL RESERVE.
THESE CONCERNS CAUSED THE STOCK MARKET TO BEHAVE ERRATICALLY DURING THE FIRST
QUARTER, PARTICULARLY IN THE GROWTH STOCK ARENA. THE VOLATILITY WAS EVEN MORE
PRONOUNCED IN THE SMALL-CAP SECTOR. THE RUSSELL 2000 INDEX, FOR EXAMPLE, WAS
DOWN 10.5% FOR THE FIRST THREE MONTHS COMPARED TO GAINS IN EXCESS OF 2.5% ON
BOTH THE DOW JONES INDUSTRIAL AVERAGE AND THE STANDARD & POOR'S INDEX OF 500
COMMON STOCKS. FOR ITS PART, THE AGGRESSIVE GROWTH PORTFOLIO, CLEARLY HURT BY
ITS SMALLER CAP HOLDINGS, DECLINED SLIGHTLY DURING THE FIRST QUARTER. FEBRUARY
WAS AN ESPECIALLY DIFFICULT MONTH, WITH UNSEASONABLY WARM WEATHER CAUSING OIL
STOCK HOLDINGS TO DECLINE AND A POORLY PERFORMING NETWORKING SECTOR NEGATIVELY
IMPACTING SEVERAL TECHNOLOGY HOLDINGS.
BY THE END OF THE FIRST QUARTER, MULTIPLES OF QUALITY GROWTH STOCKS HAD
COMPRESSED TO THE POINT WHERE THESE STOCKS WERE ACTUALLY SELLING AT A DISCOUNT
TO THE BROADER MARKET. WE CONCLUDED, HOWEVER, THAT THIS DROP IN MULTIPLES DID
NOT REFLECT DETERIORATING COMPANY FUNDAMENTALS, BUT TEMPORARY NEGATIVE INVESTOR
PSYCHOLOGY. AND AS ECONOMIC DATA CAME IN THROUGHOUT THE QUARTER INDICATING THE
ECONOMY WAS IN FACT SLOWING AND THAT INFLATION WAS NOT AN IMMINENT PROBLEM,
MARKET PSYCHOLOGY DID INDEED BEGIN TO IMPROVE.
AS INVESTOR CONFIDENCE STARTED TO REBUILD, PREMIUMS FOR QUALITY GROWTH STOCKS
BEGAN TO EXPAND WHICH, COUPLED WITH STRONG EARNINGS, HELPED THE AGGRESSIVE
GROWTH PORTFOLIO TO REBOUND SIGNIFICANTLY FROM THE FIRST QUARTER. ALTHOUGH ON A
RELATIVE BASIS, THE PORTFOLIO RETURNED 14.83% TRAILING THE S&P 500 INDEX RETURN
OF 20.61 FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997, WE ARE PLEASED WITH ITS
OVERALL PERFORMANCE IN WHAT HAS PROVEN TO BE A CHALLENGING PERIOD FOR GROWTH
STOCKS.
ALTHOUGH MOST SECTORS PERFORMED WELL DURING THE SECOND QUARTER, THE PORTFOLIO'S
8.3% STAKE IN COMMUNICATIONS AND COMMUNICATIONS EQUIPMENT STOOD OUT IN
PARTICULAR, WITH HOLDINGS LIKE TELLABS, INC., WORLDCOM, INC., CISCO SYSTEMS,
INC., NOKIA, AND MOTOROLA, INC. LEADING THE WAY. AT PRESENT, THE PORTFOLIO
REMAINS WELL-DIVERSIFIED WITH PHARMACEUTICALS, SEMICONDUCTOR, AND RETAILING
REPRESENTING THE MOST HEAVILY WEIGHTED SECTORS.
LOOKING AHEAD, WE BELIEVE THAT INVESTORS WILL CONTINUE THEIR RETURN TO GROWTH
STOCKS AS CONCERNS ABOUT INTEREST RATES WANE. THIS COULD VERY WELL LEAD TO SOME
DRAMATIC RESULTS OVER THE SECOND HALF OF THE YEAR. WE ARE ENCOURAGED BY THIS
REVERSAL OF NEGATIVE INVESTOR PSYCHOLOGY TOWARD GROWTH STOCKS AND EXCITED BY
THE FACT THAT THERE IS STILL A LONG WAY TO GO UNTIL THESE EXPLOSIVE STOCKS ARE
FAIRLY VALUED RELATIVE TO THE BROAD MARKET.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
DAVID D. ALGER
PRESIDENT, FRED ALGER MANAGEMENT, INC.
This material must be preceded or accompanied by the Fund's
current prospectus.
9
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. BALANCED PORTFOLIO,
THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS AND LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[INSERT GRAPH]
THE BALANCED PORTFOLIO FINISHED THE PERIOD ON A STRONG NOTE, GAINING 8.87% IN
THE SECOND QUARTER. FOR THE FULL SIX MONTH PERIOD ENDED JUNE 30, 1997, THE
PORTFOLIO PROVIDED A 7.85% TOTAL RETURN. BY COMPARISON, THE STANDARD & POOR'S
INDEX OF 500 COMMON STOCKS GAINED 20.61% AND THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX WAS UP 2.83% FOR THE SAME SIX
MONTHS. THE BALANCED PORTFOLIO'S ASSET ALLOCATION AT PERIOD'S END WAS 59.7% IN
COMMON STOCKS, 6.0% IN CONVERTIBLE PREFERRED STOCKS, 31.8% IN U.S. TREASURIES,
AND 2.5% INTEREST BEARING CASH RESERVES.
COMMON STOCKS MOVED UP VIGOROUSLY DURING THE SECOND QUARTER WITH THE S&P 500
GAINING A STUNNING 17.46%. FOR PERSPECTIVE, AS OF JUNE 30 THE TOP 42 COMPANIES
BY MARKET CAP ($40 BILLION OR GREATER MARKET CAP) IN THE INDEX WERE UP 29% FOR
THE YEAR, WHILE THE BOTTOM 250 STOCKS WERE UP ONLY 9.5% FOR THE SAME PERIOD.
CLEARLY, THE PERFORMANCE OF THE UNMANAGED MARKET AVERAGES HAS BEEN DRIVEN VERY
HARD BY THE LARGE CAPITALIZED COMPANIES.
FOR THEIR PART, THE COMMON STOCKS IN THE BALANCED PORTFOLIO MOVED UP 12.0%
(EXCLUDING DIVIDENDS) DURING THIS STRONG SECOND QUARTER. ONLY 12 COMPANIES OUT
OF THE TOTAL 48 EQUITY HOLDINGS FALL INTO THIS "LARGE" CATEGORY OF $40 BILLION
MARKET CAPITALIZATION OR GREATER. IN OTHER WORDS, THIS ALLOCATION TO THE VERY
LARGEST OF THE LARGE-CAP COMPANIES REPRESENTS A LITTLE OVER ONE QUARTER OF THE
EQUITY NAMES AND 26% OF THE COMMON STOCK SHARE OF THE PORTFOLIO. MOREOVER, IN
PURSUING A VALUE STRATEGY, WE ARE FURTHER CONSTRAINED FROM "CHASING" THOSE
STOCKS WHICH ARE NOW TO US CLEARLY PRICED AT LEVELS THAT EVEN MAKE MANY
SEASONED GROWTH MANAGERS WEAK IN THE KNEES.
CURRENTLY, THE PORTFOLIO CONTAINS 48 COMMON STOCKS REPRESENTING 13 SECTORS WITH
NO SINGLE STOCK ACCOUNTING FOR MORE THAN 1.6% OF THE ENTIRE PORTFOLIO. ALSO, NO
DERIVATIVE SECURITIES ARE PRESENT IN THE PORTFOLIO. OVERALL PORTFOLIO YIELD WAS
4.2% ON JUNE 30.
THE BOND MARKET, MEANWHILE, RALLIED TOWARDS THE END OF THE PERIOD, PROVIDING A
POSITIVE TOTAL RETURN FOR THE CLASS COMPARED WITH NEGATIVE RETURNS IN THE FIRST
QUARTER. AT THE CLOSE OF THE PERIOD, THE PORTFOLIO'S BOND DURATION WAS 5.82
YEARS WITH AN AVERAGE LIFE OF 9.5 YEARS. YIELD FOR THE BONDS IN THE PORTFOLIO
WAS 6.73%, AND YIELD TO MATURITY REGISTERED 6.23%.
WE BELIEVE THAT THE SECOND QUARTER PERFORMANCE PROVIDED REASONABLE MARKET
PARTICIPATION WHILE AT THE SAME TIME PROVIDING MEANINGFUL DOWNSIDE PROTECTION
GIVEN BOTH THE ASSET ALLOCATION AND THE UNDERLYING VALUE DISCIPLINE IN OUR
EQUITY SELECTION.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
MICHAEL VAN METER
BALANCED PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
10
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (1)
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. GROWTH & INCOME PORTFOLIO,
THE DOW JONES UTILITIES AVERAGE INDEX, AND THE STANDARD & POOR'S INDEX OF 500
COMMON STOCKS
[INSERT GRAPH]
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997, THE GROWTH & INCOME PORTFOLIO
POSTED A TOTAL RETURN OF 8.93%. BY COMPARISON, THE DOW JONES UTILITY AVERAGE
RETURNED (0.38)%, THE S&P UTILITY RETURNED 2.31%, WHILE THE STANDARD & POORS
INDEX OF 500 COMMON STOCKS GAINED 20.61%. THE SECOND QUARTER MARKED THE
BEGINNING OF A SIGNIFICANT TRANSITION FOR THE PORTFOLIO. AS OF MAY 1, THE
OBJECTIVE OF THE PORTFOLIO WAS CHANGED TO ONE WHICH SEEKS TOTAL RETURNS BY
INVESTING IN SECURITIES AND SECTORS THAT HAVE DEFENSIVE CHARACTERISTICS. WE
ALSO WILL STRIVE TO GENERATE ABOVE-AVERAGE RETURNS OVER FULL STOCK MARKET
CYCLES.
IN LINE WITH THIS NEWLY BROADER OBJECTIVE FOR THE GROWTH & INCOME PORTFOLIO, WE
ARE REDUCING THE EXPOSURE TO UTILITIES AND ARE ADDING TO OTHER SECTORS THAT OUR
RESEARCH INDICATES HAVE HISTORICALLY BEEN DEFENSIVE IN WEAK STOCK MARKETS. THE
HOLDINGS SHOULD PROVIDE ABOVE-AVERAGE CURRENT INCOME AND APPRECIATION
POTENTIAL, IN OUR OPINION.
FOR EXAMPLE, REAL ESTATE INVESTMENT TRUSTS OFFER AN OPPORTUNITY TO BENEFIT FROM
THE RECOVERY IN REAL ESTATE IN ADDITION TO AN EMERGING INDUSTRY SHIFT FROM
PRIVATE OWNERSHIP TO PUBLIC OWNERSHIP. ENERGY STOCKS ALSO WILL BE A LARGER
PORTION OF THE PORTFOLIO FOR THEIR DEFENSIVE CHARACTERISTICS, ABOVE-AVERAGE
DIVIDEND YIELDS, AND EXCELLENT GROWTH PROSPECTS. IN THE TRADITIONAL UTILITY
SECTORS, WHERE WE CONTINUE TO INVEST AT LEAST 25% OF THE PORTFOLIO'S ASSETS, WE
WILL TRY TO POSITION THE PORTFOLIO TO BENEFIT FROM INDUSTRY DEREGULATION. WE
ARE EMPHASIZING COMPANIES WITH SKILLED MANAGEMENT WHO ACT IN THEIR
SHAREHOLDERS' INTEREST.
SOME OF OUR SELECTED PURCHASES THIS PERIOD INCLUDE: U.S. TREASURY NOTES DUE IN
1999 WHICH YIELD 6.2% ON COST AND SHOULD PRODUCE A POSITIVE TOTAL RETURN EVEN
UNDER QUITE BEARISH SCENARIOS OF EITHER SHARPLY HIGHER INTEREST RATES FROM
RISING INFLATION OR A DECLINE IN PROFITS (AND, PRESUMABLY, STOCK PRICES) IN AN
ECONOMIC RECESSION; BOSTON PROPERTIES, INC., A HIGH-QUALITY REIT THAT OWNS
OFFICE PROPERTIES IN THE NORTHEAST, WHICH HAD A 6.5% DIVIDEND YIELD AND SUPERB
PROPERTIES; AND MAPCO, INC., A DIVERSIFIED ENERGY COMPANY WITH A LARGE PIPELINE
FOR LIQUEFIED NATURAL GAS.
WE ARE ENTHUSIASTIC ABOUT THE GROWTH & INCOME PORTFOLIO'S PROSPECTS. THE
ADDITION OF DEFENSIVE HOLDINGS OUTSIDE THE UTILITY GROUP, AND THE UTILITIES'
ATTRACTIVE VALUATION RELATIVE TO THE BROAD MARKET, SHOULD POSITION THE
PORTFOLIO WELL FOR THE NEXT PHASE OF THE STOCK MARKET CYCLE.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
LINDA A. DUESSEL
GROWTH & INCOME PORTFOLIO
PORTFOLIO MANAGER
(1) Prior to May 1, 1997, this Portfolio was named the Utility Portfolio.
This material must be preceded or accompanied by the Fund's
current prospectus.
11
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. TACTICAL ASSET ALLOCATION PORTFOLIO,
THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS, AND THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[INSERT GRAPH]
PARTICIPANTS IN THE U.S. EQUITY MARKET WERE TAKEN ON A ROLLER COASTER RIDE FOR
THE FIRST HALF OF 1997. STOCKS, FUELED BY UPBEAT YEAR-END EARNINGS NUMBERS, LOW
INTEREST RATES, AND CONTINUED INFLOWS INTO EQUITY MUTUAL FUNDS HAD A HEALTHY
RISE IN JANUARY AND PART OF FEBRUARY. IN THE LATTER PART OF THE FIRST QUARTER,
HOWEVER, SENTIMENT BECAME MUCH MORE ANXIOUS. THE FEDERAL RESERVE DID INDEED
INCREASE RATES BY 25 BASIS POINTS ON MARCH 25, AND STOCKS CORRECTED EVEN
FURTHER WITH THE STANDARD & POORS INDEX OF 500 COMMON STOCKS DECLINED NEARLY
10% FROM ITS FEBRUARY PEAK TO AN APRIL TROUGH.
AFTER THIS SHORT-TERM CORRECTION, HOWEVER, MARKET PARTICIPANTS PROMPTLY DROVE
THE STOCK MARKET BACK TO ALL-TIME RECORDS. WITH ECONOMIC DATA SUGGESTING THAT
THE RATE OF GROWTH IN THE U.S. ECONOMY WAS SLOWER IN THE SECOND QUARTER, THE
THREAT OF INFLATION REMAINED LARGELY BENIGN. CORPORATE EARNINGS IN THE MEANTIME
REMAINED SOLID AND MUTUAL FUND INFLOWS CONTINUED TO SET RECORDS. ALL TOGETHER,
THE S&P 500 GAINED 17.46% GAIN IN THE SECOND QUARTER - ONE OF THE BEST QUARTERS
EVER FOR THE INDEX. FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997, THE S&P 500
RETURNED 20.61%, WHILE BONDS, AS MEASURED BY THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX, GAINED 2.83%. IN THIS
ENVIRONMENT, THE TACTICAL ASSET ALLOCATION PORTFOLIO ADVANCED 8.53%.
TO BE SURE, THE RECENT STRENGTH IN THE MARKET INDEXES HAS BEEN HIGHLY
CONCENTRATED IN A RELATIVELY SMALL NUMBER OF "MEGA-CAP" STOCKS - THE LARGEST
COMPANIES WITH THE LARGEST CAPITALIZATIONS AND HIGHEST AMOUNT OF MARKET
LIQUIDITY. AS A RESULT, FUNDS AND PORTFOLIOS WHICH HAVE EMPHASIZED SMALL- AND
MID-CAP NAMES HAVE LAGGED THE S&P 500, AND IN A RELATIVE SENSE, MANY OF THOSE
WITH LARGE-CAP NAMES HAVE BEEN DISAPPOINTING AS WELL. IN OTHER WORDS, ONLY A
MANAGER THAT EMPHASIZES PRICE MOMENTUM AND HAS CONCENTRATED HIS PORTFOLIO IN
THE "MEGA-CAPS" WILL HAVE OUT-PERFORMED IN THE RECENT MARKET ENVIRONMENT.
OUR ALLOCATION TO STOCKS DID MOVE A BIT HIGHER THROUGHOUT THE PERIOD TO TAKE
ADVANTAGE OF SELECTED OPPORTUNITIES, ENDING AT 59%, WHICH WE CONSIDER A NEUTRAL
POSITIONING. WE BELIEVE THIS STANCE IS APPROPRIATE GIVEN THE CURRENT STATUS OF
THE MARKET, AND IS CONSISTENT WITH OUR STATED OBJECTIVE AS MANAGERS -
PRESERVATION OF CAPITAL AND COMPETITIVE INVESTMENT RETURNS.
OUR STOCK PICKING PHILOSOPHY ADHERES TO A VALUE DISCIPLINE. COMPANIES ARE
SCRUTINIZED FOR THEIR GROWTH POTENTIAL, MARKET POSITIONING, AND STRATEGIC
PLANNING, BUT ONLY THOSE STOCKS WITH LOWER AND/OR REASONABLE VALUATIONS (I.E.,
PRICE TO EARNINGS, PRICE TO CASH FLOW, PRICE TO BOOK VALUE) ARE CANDIDATES TO
BE INCLUDED IN THE PORTFOLIO. EXAMPLES OF THESE KINDS OF STOCKS WOULD INCLUDE
APPLIED MATERIALS, INC., THE LEADING MANUFACTURER OF SEMICONDUCTOR EQUIPMENT,
GREEN TREE FINANCIAL CORPORATION, A FINANCIAL SERVICES FIRM WITH A LEADING
POSITION IN PROVIDING CONSUMER LOANS FOR THE PURCHASE OF MANUFACTURED HOUSING,
AND SEAGATE TECHNOLOGY INC., A MAKER OF HIGH-END DISK DRIVES AND OTHER DATA
STORAGE PRODUCTS AND COMPONENTS.
OUR STOCK SELECTION PROCESS AND ASSET ALLOCATION MODELS HAVE PROVIDED LONG-TERM
INVESTORS WITH RELATIVELY STABLE RETURNS THAT HAVE BEEN COMPETITIVE WITH THE
MARKET INDEXES. GOING FORWARD, WE EXPECT OUR APPROACH TO CONTINUE TO REWARD
INVESTORS WITH SOLID RISK-ADJUSTED RETURNS, WHILE PROVIDING DOWNSIDE PROTECTION
IN TIMES OF MARKET INSTABILITY.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
ARVIND SACHDEVA JOHN C. RIAZZI
TACTICAL ASSET ALLOCATION PORTFOLIO
CO-PORTFOLIO MANAGERS
This material must be preceded or accompanied by the Fund's
current prospectus.
12
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC.
C.A.S.E. GROWTH PORTFOLIO, AND THE WILSHIRE 5000 INDEX
[INSERT GRAPH]
OVER THE PAST SEVERAL QUARTERS, THE MARKET BREADTH IN GENERAL HAS BEEN
"NARROWLY" CONFINED TO THE LARGEST 25 NEW YORK STOCK EXCHANGE COMPONENTS. AS A
CONSEQUENCE, LESS THAN 5% OF INVESTMENT MANAGERS HAVE PERFORMED IN LINE WITH
THE MARKET AVERAGES.
GIVEN THAT THE OBJECTIVE OF THE C.A.S.E. GROWTH PORTFOLIO IS CAPITAL GROWTH
THROUGH INVESTMENTS IN COMMON STOCKS OF SMALL TO MEDIUM-SIZED COMPANIES, THE
PORTFOLIO HAS UNDERPERFORMED ITS BENCHMARK YEAR TO DATE. THE PORTFOLIO DID,
HOWEVER, OUTPERFORM THE BROAD MARKET AVERAGES OVER THE PAST QUARTER IN BOTH
UPSIDE AND DOWNSIDE ENVIRONMENTS. FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997,
THE PORTFOLIO RETURNED 5.19%. BY COMPARISON, THE STANDARD & POOR'S INDEX OF 500
COMMON STOCKS GAINED 20.61%, AND THE WILSHIRE 5000 INDEX GAINED 16.65% FOR THE
SAME PERIOD. PRESENTLY, WE THINK THE PORTFOLIO HAS A RISK PROFILE WHICH IS
LOWER THAN THE MARKET AVERAGES. WE WILL CONTINUE TO USE THE PROVEN, PATIENT
STYLE THAT HAS SERVED US SO WELL OVER THE PAST SEVERAL YEARS.
FORTUNATELY, IT APPEARS TO US THAT STOCK MARKET APPETITES ARE BEGINNING TO
SPREAD OUT TO INCLUDE THE UPPER TIER OF THE RANGE OF THE NEW YORK STOCK
EXCHANGE, AMERICAN STOCK EXCHANGE, AND TO A LESSER EXTENT, OVER-THE-COUNTER
MARKETS. AT THE SAME TIME, THOUGH, INVESTORS CONTINUE TO "POUNCE" ON STOCKS
WITH NEGATIVE EARNINGS SURPRISES. INTEL, THE BELLWETHER TECHNOLOGICAL LEADER,
DID REPORT LOWER EARNINGS, BUT THEY WERE HIGHER THAN THE "WHISPER VALUE"
EXPECTED BY MOST ANALYSTS.
ESSENTIALLY, WE CONTINUE TO SEE EVIDENCE OF A VERY ROBUST AND WELL-BEHAVED
ECONOMY, WITH LOW INFLATION AND LOW INTEREST RATES. WE BELIEVE CORPORATE WILL
PROFITABILITY CONTINUES TO RISE AND COMPANIES ARE, FOR THE MOST PART, REPORTING
HIGHER THAN EXPECTED EARNINGS IN SEVEN OF OUR EIGHT CORE ECONOMIC SECTORS.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
WILLIAM E. LANGE
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
13
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC.
GLOBAL SECTOR PORTFOLIO, FINANCIAL TIMES WORLD INDEX, AND THE LEHMAN HUTTON
BOND INDEX
[INSERT GRAPH]
THE GLOBAL SECTOR PORTFOLIO FOLLOWS AN ASSET ALLOCATION AND SECTOR ROTATION
STRATEGY WHICH SHIFTS BETWEEN A WIDE RANGE OF ASSET CLASSES, AND WITHIN THEM,
SECTORS. THE INVESTMENT OBJECTIVE IS CAPITAL GROWTH. FOR THE SIX MONTH PERIOD
ENDED JUNE 30, 1997, THE PORTFOLIO GAINED 6.44%. BY COMPARISON, THE PORTFOLIO'S
BENCHMARK, A 60% WEIGHTING IN THE FINANCIAL TIMES WORLD INDEX AND A 40%
WEIGHTING IN THE LEHMAN HUTTON BOND INDEX, APPRECIATED 10.62% FOR THE SAME
PERIOD. INDIVIDUALLY, THE FINANCIAL TIMES WORLD INDEX INCREASED 14.02%, WHILE
THE LEHMAN HUTTON BOND INDEX WAS UP 5.52%.
THE PORTFOLIO BEGAN THE YEAR WITH A HIGH CASH POSITION, APPROXIMATELY 20%. OUR
VALUATION MODEL AT THAT TIME INDICATED THE U.S. STOCK MARKET AND SEVERAL
INTERNATIONAL MARKETS WERE OVER-PRICED. THIS POSITION PROVED TO BE PRUDENT, AS
THESE MARKETS EXPERIENCED A MODEST "CORRECTION" DURING MARCH AND APRIL. IN LATE
APRIL AND EARLY MAY, WE BEGAN TO INCREASE OUR EQUITY POSITIONS. IN THE U.S., WE
TOOK POSITIONS IN SEVERAL INDUSTRIES THAT APPEARED TO BE ATTRACTIVELY PRICED
COMPARED TO THEIR FAIR MARKET VALUES WHILE WE ADDED TO SEVERAL INTERNATIONAL
POSITIONS.
IN ADDITION TO INCREASING OUR EQUITY EXPOSURE, WE ALSO REPLACED A NUMBER OF
INDUSTRY HOLDINGS. THE PORTFOLIO CURRENTLY HAS POSITIONS IN THE FOLLOWING U.S.
INDUSTRIES: GOLD/PRECIOUS METALS AND MINING, DISTRIBUTORS (FOOD, HEALTH),
FOODS, HEALTH CARE (DIVERSIFIED, DRUGS, HOSPITAL MANAGEMENT, LONG-TERM AND
MANAGED CARE), RESTAURANTS, GAMING AND LOTTERY, COMPUTERS (NETWORKING,
PERIPHERALS), ENTERTAINMENT, AIRLINES, AND TRUCKERS. SEVERAL OF THESE
INDUSTRIES HAVE BEEN HIT HARD OVER THE LAST YEAR AND REPRESENT WHAT WE THINK
ARE GOOD VALUES. THE REST WERE PURCHASED AT LOW LEVELS AND HAVE MAINTAINED
LEADERSHIP CHARACTERISTICS.
WHILE OVERALL PERFORMANCE HAS BEEN POSITIVE IN MOST INTERNATIONAL EQUITY
MARKETS, SINCE THE PORTFOLIO DOES NOT ENGAGE IN HEDGING ACTIVITIES, THE DOLLAR
HAS NEGATED RETURNS. IT DID, HOWEVER, HELP PERFORMANCE DURING THE PAST FEW
MONTHS AS THE DOLLAR REACHED A HIGH VERSUS THE YEN IN APRIL. CURRENTLY, THE YEN
TO DOLLAR EXCHANGE REPRESENTS A MORE SENSIBLE TRADING RANGE GIVEN BOTH
COUNTRY'S FUNDAMENTALS AND INTEREST RATES.
THERE ARE NUMEROUS OPPORTUNITIES IN MARKETS OUTSIDE THE U.S. INDEED, WE FEEL
INTERNATIONAL EQUITY MARKETS REPRESENT THE BEST OPPORTUNITY. WHILE SEVERAL
MARKETS LOOK ATTRACTIVE, OUR ANALYSIS INDICATES THAT EUROPEAN EQUITIES ARE
UNDER-PRICED RELATIVE TO THEIR FAIR MARKET VALUE. THE PORTFOLIO HAS HAD
EXPOSURE IN GERMANY, DENMARK, BELGIUM, AND ITALY.
AT THE BEGINNING OF THE YEAR WE INDICATED THAT FEARS AND CONCERNS HAVE PUT
PRESSURE ON THE JAPANESE EQUITY MARKETS. WE ALSO INDICATED THAT WE WERE UNDER-
WEIGHTED IN THIS COUNTRY. WE HAVE SINCE INCREASED OUR WEIGHTING IN THIS COUNTRY
TO A LARGER POSITION, FEELING JAPANESE EQUITIES REPRESENT ONE OF THE BEST
BUYING OPPORTUNITIES AND WE ARE LOOKING FOR GOOD PERFORMANCE IN THE REMAINDER
OF 1997.
WE CONTINUE TO FEEL BONDS REPRESENT A GOOD INVESTMENT OPPORTUNITY. THE
PORTFOLIO IS SLIGHTLY UNDERWEIGHTED IN THIS ASSET CATEGORY, HOWEVER, WE THINK
AS EQUITIES REMAIN A BETTER CHOICE FOR TOTAL RETURN POTENTIAL.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
BRYAN M. RITZ
GLOBAL SECTOR PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's current prospectus.
Foreign securities involve special risks described in the prospectus
that should be considered carefully before investing.
14
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. VALUE EQUITY PORTFOLIO AND
THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
[INSERT GRAPH]
THE INVESTMENT OBJECTIVE OF THE VALUE EQUITY PORTFOLIO, WHICH COMMENCED
OPERATIONS ON MAY 1, 1996, IS TO ACHIEVE MAXIMUM, CONSISTENT TOTAL RETURN WITH
MINIMUM RISK TO PRINCIPAL BY INVESTING PRIMARILY IN COMMON STOCKS WITH
ABOVE-AVERAGE STATISTICAL VALUE WHICH, IN THE SUB-ADVISER'S OPINION, ARE IN
FUNDAMENTALLY ATTRACTIVE INDUSTRIES, AND ARE UNDERVALUED AT THE TIME OF
PURCHASE. THE PORTFOLIO PERFORMED WELL DURING THE SIX MONTHS ENDED JUNE 30,
1997 RETURNING 14.66% COMPARED TO THE STANDARD & POOR'S INDEX OF 500 COMMON
STOCKS WHICH GAINED 20.61%.
THE CORNERSTONE OF OUR INVESTMENT PROCESS IS A DISCIPLINED APPROACH TO VALUE
RECOGNITION WITHIN INDUSTRIES REPRESENTING LONG-TERM MARKET LEADERSHIP. WE
BELIEVE THAT INVESTMENT OPPORTUNITY IS CREATED BY CHANGES IN THE ECONOMIC,
MONETARY, POLITICAL, AND SOCIAL ENVIRONMENT. WE SEEK TO RECOGNIZE CHANGE EARLY
IN ASSET CATEGORIES, MARKET SECTORS, INDUSTRIES, AND COMPANIES - BEFORE THESE
CHANGES ARE REFLECTED IN SECURITIES' PRICES. STOCK SELECTION EMPHASIZES MEDIUM-
TO LARGE-CAPITALIZATION COMPANIES REPRESENTING ABOVE-AVERAGE STATISTICAL VALUE.
INVESTMENTS ARE CONCENTRATED IN THOSE FUNDAMENTALLY ATTRACTIVE INDUSTRIES WE
IDENTIFY AS THE POTENTIAL BENEFICIARIES OF LONG-TERM INVESTMENT TRENDS.
THE PERFORMANCE OF THE U.S. ECONOMY CONTINUES TO EXCEED THE EXPECTATIONS OF
MOST FORECASTERS. WHILE GROWTH APPEARS TO BE MODERATING CONSIDERABLY FROM THE
STRONG PACE OF PRECEDING QUARTERS, THE OVERALL CONDITION OF THE ECONOMY LOOKS
BETTER THAN AT ANY TIME IN RECENT MEMORY - THE U.S. UNEMPLOYMENT RATE IS AT A
24-YEAR LOW, CONSUMER CONFIDENCE IS AT ITS HIGHEST LEVELS SINCE 1969, INFLATION
IS ITS LOWEST IN A GENERATION WITH NO VISIBLE COST PRESSURE BUILDING IN THE
PIPELINE, AND COMMODITY PRICES ARE STABLE. IN ADDITION, WE BELIEVE THE BUDGET
DEFICIT SHOULD END THE CURRENT FISCAL YEAR BELOW 1% OF GDP, VERSUS AN AVERAGE
OF 4.1% DURING THE 1980'S AND 3.3% DURING THE 1990-1996 PERIOD. WITHIN THIS
ENVIRONMENT, CORPORATE PROFITS HAVE EXPANDED AT A DOUBLE-DIGIT RATE FOR FIVE
CONSECUTIVE YEARS FOR THE FIRST TIME EVER, AND THE STOCK MARKET HAS SOARED TO
UNPRECEDENTED LEVELS IN THE LONGEST BULL MARKET IN HISTORY.
BUT THE STRONG PERFORMANCE OF THE LARGEST COMPANIES IN THE S&P 500 INDEX
PRESENTS INVESTORS WITH ONE GLARING PROBLEM - IT'S EXTREMELY DIFFICULT TO
MATCH, OR EXCEED, INDEX RETURNS WITHOUT CONCENTRATING AN INCREASING PORTION OF
ASSETS IN THE LARGEST STOCKS. AT THE SAME TIME, ONE SHOULD ASK THE QUESTION:
DOES IT MAKE SENSE TO PUT INCREASING AMOUNTS OF MONEY INTO THE VERY STOCKS THAT
HAVE ALREADY APPRECIATED THE MOST? AS AN ALTERNATIVE, WE CITE ONE OF OUR
LONGEST-HELD POSITIONS, CATERPILLAR, INC. SINCE THE BEGINNING OF 1993,
CATERPILLAR, INC. HAS APPRECIATED BY APPROXIMATELY 270%, FAR SURPASSING THE
STELLAR 120% INCREASE IN THE S&P 500 INDEX. AT THE SAME TIME, CATERPILLAR,
INC., DESPITE HAVING RECORDED AN AVERAGE EARNINGS INCREASE IN EXCESS OF 23%
ANNUALLY OVER THE SAME PERIOD, TODAY SELLS FOR LESS THAN 13 TIMES EXPECTED 1997
EARNINGS PER SHARE, OR ROUGHLY 65% OF THE MARKET PRICE-EARNINGS RATIO.
WE RAISE THIS EXAMPLE SIMPLY TO INDICATE THAT EVEN AS STOCK PRICES REACH
UNPRECEDENTED HEIGHTS, LONG-TERM INVESTORS MAY STILL ACHIEVE SUPERIOR RETURNS
BY FINDING QUALITY COMPANIES SELLING AT PRICES THAT DO NOT DISCOUNT A FAVORABLE
OUTLOOK, BUT RATHER APPEAR TO ANTICIPATE TROUBLE AHEAD.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
EDWARD C. FRIEDEL
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
15
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON IN CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. INTERNATIONAL EQUITY PORTFOLIO,
THE MORGAN STANLEY CAPITAL INTERNATIONAL (EAFE) INDEX, AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL WORLD (EXCL. UNITED STATES)
[INSERT GRAPH]
FROM ITS INCEPTION JANUARY 2, 1997, THROUGH JUNE 30, 1997, THE INTERNATIONAL
EQUITY PORTFOLIO PRODUCED A TOTAL RETURN OF 13.44%. BY COMPARISON, THE MORGAN
STANLEY CAPITAL INTERNATIONAL (EAFE) INDEX GAINED 11.71% FOR THE SAME PERIOD.
SCOTTISH EQUITABLE INVESTMENT MANAGEMENT:
MOST OF THE INTERNATIONAL EQUITY MARKETS MAINTAINED THEIR PREOCCUPATION WITH
EVENTS IN THE U.S. IN THE FIRST HALF OF 1997, RESPONDING POSITIVELY TO STOCKS'
SHARP SECOND QUARTER RALLY. THE LATIN AMERICAN MARKETS WERE THE STAR PERFORMERS
WITH MANY EUROPEAN MARKETS ALSO PRODUCING DOUBLE DIGIT RETURNS. IN CONTRAST,
PERFORMANCE FROM THE SMALLER "TIGER" ECONOMIES OF SOUTHEAST ASIA WAS POOR,
THAILAND IN PARTICULAR.
A SIGNIFICANT CONTRIBUTOR TO THE OUR PERFORMANCE THIS PERIOD HAS BEEN THE USE
OF CURRENCY HEDGES. AT THE END OF 1996, OUR CURRENCY MODELS WERE INDICATING
THAT DOLLAR STRENGTH WAS LIKELY TO PERSIST IN 1997. WITH THIS IN MIND, THE
DECISION WAS TAKEN IN JANUARY TO HEDGE ALL EUROPEAN AND YEN EXPOSURE IN THE
PORTFOLIO. THESE CURRENCY HEDGES REMAINED FULLY IN PLACE BETWEEN JANUARY AND
APRIL, A POSITION THAT WAS VINDICATED BY THE MOVEMENT IN CURRENCIES OVER THAT
TIME PERIOD. WHILE THE DOLLAR REMAINED OUR PREFERRED CURRENCY, BY MID-APRIL THE
STRONG GAINS AGAINST OTHER CURRENCIES MADE THE DECISION TO RETAIN THE HEDGING
LESS COMPELLING. AS SUCH THESE POSITIONS WERE LARGELY UNWOUND IN APRIL AND MAY.
FIRST HALF PERFORMANCE WAS ALSO POSITIVELY IMPACTED BY ASSET ALLOCATION
DECISIONS. THE OVERWEIGHTED POSITION IN EUROPE IN GENERAL, AND SPECIFICALLY IN
THE NETHERLANDS AND FINLAND, HAS BEEN OF ASSISTANCE, AS HAS BEEN OUR
UNDERWEIGHTING IN THE PACIFIC, WITH LITTLE OR NO EXPOSURE TO THAILAND OR
MALAYSIA. INDIVIDUAL STOCK PERFORMANCE HAS ALSO BEEN A MARGINAL POSITIVE WITH
SOME SPECTACULAR RETURNS ACHIEVED FROM SOME OF OUR CORE HOLDINGS, NAMELY,
PHILIPS ELECTRONICS N.V., UP 77.3%, AND NOVARTIS AG, WHICH GAINED 18.6%.
LOOKING FORWARD, WE REMAIN RELATIVELY SANGUINE ON THE OUTLOOK FOR EUROPE. THE
CORE ECONOMIES APPEAR TO BE IN REASONABLY GOOD SHAPE WITH STATISTICS POINTING
TOWARDS STEADY ECONOMIC GROWTH WITH LITTLE IN THE WAY OF INFLATIONARY PRESSURE.
WE INTEND FOR THE TIME BEING TO REMAIN OVERWEIGHTED IN EUROPE IN GENERAL AND IN
GERMANY, AUSTRIA AND THE NETHERLANDS IN PARTICULAR. CONVERSELY, WE REMAIN
CAUTIOUS TOWARDS FAR EAST EQUITY MARKETS. WHILE WE BELIEVE THE OUTLOOK FOR THE
HONG KONG ECONOMY IS RELATIVELY POSITIVE, THIS YEAR'S SHARP STOCK MARKET
APPRECIATION HAS LEFT VALUATIONS LOOKING STRETCHED.
16
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (CONTINUED)
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
GE INVESTMENT MANAGEMENT:
WE USE AN ACTIVE FUNDAMENTAL INVESTMENT APPROACH WITHIN THE INTERNATIONAL
EQUITY MARKETS. OUR OBJECTIVE IS TO SEEK LONG TERM GROWTH OF CAPITAL BY
INVESTING PRIMARILY IN THE COMMON STOCK OF FOREIGN ISSUERS TRADED ON OVERSEAS
EXCHANGES AND IN FOREIGN OVER-THE-COUNTER-MARKETS. COUNTRY ALLOCATION IS A
DIRECT RESULT OF THIS BOTTOM-UP STOCK SELECTION PROCESS. POLITICAL AND ECONOMIC
RISKS ARE ALSO CONSIDERED TO CONTROL OVERALL PORTFOLIO RISK.
OUR RELATIVE OUTPERFORMANCE THIS PERIOD WAS LARGELY DRIVEN BY POSITIVE STOCK
SELECTION IN JAPAN AND MARKET ALLOCATION IN LATIN AMERICA AND CONTINENTAL
EUROPE. GLOBALLY COMPETITIVE JAPANESE STOCKS, SUCH AS ROHM COMPANY, CANON,
INC., AND SONY CORPORATION HAD A STRONG FIRST HALF WHEREAS FINANCIAL STOCKS,
WHICH WE LARGELY AVOIDED, HAVE BEEN PLAGUED WITH LARGE NON-PERFORMING LOANS AND
QUESTIONABLE MANAGEMENT OVERSIGHT. THE PORTFOLIO'S 4.3% WEIGHTING IN LATIN
AMERICA ALSO HAD A SIGNIFICANT IMPACT ON PERFORMANCE GIVEN THE REGION WAS UP
40.8% THROUGH JUNE 30. IN ADDITION, OUR OVERWEIGHTING IN CONTINENTAL EUROPE -
47.8% VERSUS THE BENCHMARK OF 38.5% - CONTRIBUTED FAVORABLY GIVEN THE REGION
WAS UP 16.8%.
WE HAVE ALSO BENEFITED FROM OUR HOLDING IN NOVARTIS AG, A MERGER BETWEEN TWO
SWISS PHARMACEUTICAL COMPANIES, SANDOZ AND CIBA-GEIGY. NOVARTIS AG EPITOMIZES
TWO TRENDS WE ARE SEEING IN EUROPE: CORPORATE RESTRUCTURING AND STRONG EXPORTS.
ANOTHER FAVORITE HOLDING IS HSBC HOLDINGS PLC, ONE OF THE WORLD'S STRONGEST
BANKING FRANCHISES. HSBC HOLDINGS PLC IS ESPECIALLY WELL POSITIONED IN CHINA
AND OTHER ASIAN MARKETS AND SEEMS TO HAVE REGAINED ITS FOCUS ON ITS CORE
BANKING BUSINESS.
LOOKING AHEAD, WE STILL FEEL THERE IS GOOD VALUE IN EUROPE AND THE EMERGING
MARKETS. IN EUROPE, WE BELIEVE CORPORATE RESTRUCTURING WILL CONTINUE WITH A
FOCUS ON SHAREHOLDER VALUE, CORPORATE CLARITY AND GLOBALIZATION. WHILE WE HAVE
LOW EXPECTATIONS FOR ECONOMIC GROWTH IN THESE COUNTRIES, WE BELIEVE THE
REGION'S ECONOMIES HAVE BOTTOMED AND SHOULD IMPROVE GOING FORWARD. ALTHOUGH IT
IS DIFFICULT TO FIND VALUE IN JAPAN, WE DO HOLD SOME GLOBAL COMPANIES WITH
LEADING PRODUCTS AND COMPETITIVE COSTS. WE WILL CONTINUE TO LOOK FOR REASONABLY
PRICED, DOMESTIC COMPANIES WITH STRONG GROWTH PROSPECTS AND COMPETITIVE
POSITIONS. UNTIL WE FIND THEM, WE EXPECT TO REMAIN SIGNIFICANTLY UNDERWEIGHTED
IN JAPAN.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
CAROL CLARK RALPH LAYMAN
INTERNATIONAL EQUITY PORTFOLIO
CO-PORTFOLIO MANAGERS
This material must be preceded or accompanied by the Fund's
current prospectus.
17
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
COMPARISON IN CHANGE IN VALUE OF $10,000 INVESTMENT IN THE WRL SERIES FUND,
INC.
U.S. EQUITY PORTFOLIO AND THE STANDARD & POORS INDEX OF 500 COMMON STOCKS
[INSERT GRAPH]
INCLUDING A RETURN OF 17.5% IN THE SECOND QUARTER, THE STANDARD & POOR'S INDEX
OF 500 COMMON STOCKS RECORDED A 20.61% GAIN FOR THE FIRST SIX MONTHS OF THE
YEAR - THE FOURTH STRONGEST FIRST-HALF GAIN OVER THE LAST 50 YEARS. THE DOW
JONES INDUSTRIAL AVERAGE TRAILED THE S&P 500, WITH A GAIN OF 20.12% WHILE
NASDAQ, DRIVEN BY THE LARGE-CAP TECHNOLOGY STOCKS ROSE 11.93%.
THE U.S. EQUITY PORTFOLIO GAINED 14.99% FROM ITS INCEPTION JANUARY 2, 1997,
THROUGH JUNE 30, 1997. THE S&P BARRA GROWTH INDEX OUTPERFORMED THE S&P BARRA
VALUE INDEX BY 570 BASIS POINTS IN THE SECOND QUARTER, BRINGING THE
YEAR-TO-DATE DIFFERENCE TO 800 BASIS POINTS. THIS IS THE FIRST TIME THAT ONE
STYLE HAS OUTPERFORMED THE OTHER BY SUCH A WIDE MARGIN SINCE 1993. WE CONTINUE
TO MONITOR OUR GROWTH VERSUS VALUE WEIGHTINGS, AND WILL MAINTAIN OUR MARKET
NEUTRAL POSITION RELATIVE TO THE MARKET.
THE CATALYSTS TO THE STOCK MARKET'S EXTRAORDINARY PERFORMANCE ARE VERY
FAMILIAR: LOW INFLATION, STRONG CORPORATE PROFITS AND ENORMOUS FREE CASH FLOW,
AND AN ECONOMIC CYCLE THAT REMAINS MUTED BUT INCREDIBLY PERSISTENT. DESPITE THE
CURRENT OPTIMISM, THE KEY QUESTION MARK GOING FORWARD CONTINUES TO BE
VALUATION. VALUATION LEVELS HAVE BEEN AT THE VERY HIGH END OF THE HISTORIC
RANGE FOR THE LAST COUPLE OF YEARS, AND YET THE STOCK MARKET CONTINUES TO RISE.
ANY PICK UP IN INFLATION OR SLOWDOWN IN EARNINGS COULD LEAVE THE MARKET
VULNERABLE TO A MAJOR CORRECTION.
CURRENTLY, THOUGH, IT APPEARS THAT THE FEDERAL RESERVE BOARD BELIEVES INFLATION
IS UNDER CONTROL FOR THE REST OF THE SUMMER. NEVERTHELESS, WE BELIEVE THE STOCK
MARKET WILL LIKELY REMAIN VOLATILE, ESPECIALLY WHEN INVESTORS RETURN TO WORK
AFTER THE SUMMER SLOWDOWN. LONG TERM WE REMAIN CONFIDENT THAT LARGE U.S.
MULTINATIONAL COMPANIES WILL CONTINUE TO DO WELL IN A GROWING WORLD ECONOMY
WHERE THEY REMAIN VERY COMPETITIVE AND ARE ABLE TO GAIN MARKET SHARE.
WE WERE HELPED IN THE PERIOD BY OUR OVERWEIGHTING IN CAPITAL GOODS STOCKS, MANY
OF WHICH CONTINUE TO SHOW SOLID EARNINGS GAINS. WE HAD GOOD STOCK SELECTION AND
BENEFITED FROM AN UNDERWEIGHTING IN THE CONSUMER CYCLICAL SECTOR. WE ALSO DID
WELL BY UNDERWEIGHTING GENERAL MOTORS CORPORATION AND HAVING NO POSITION IN
NIKE. IN THE FINANCIAL SECTOR WE WERE HELPED BY OUR LARGE OVERWEIGHTINGS IN
TRAVELERS GROUP, INC., FEDERAL NATIONAL MORTGAGE ASSOCIATION, AND STATE STREET
CORPORATION.
TECHNOLOGY WAS THE SECTOR WHERE WE ONCE AGAIN SUFFERED OUR GREATEST
UNDERPERFORMANCE. OUR LARGE UNDERWEIGHTING IN MICROSOFT CORPORATION, NOW THE
THIRD LARGEST CAPITALIZATION STOCK IN THE S&P 500, ALSO HURT. OUR OVERWEIGHTING
IN THE ENERGY SECTOR HURT US IN THE SECOND QUARTER.
WE CONTINUE TO BELIEVE THAT OUR FOCUS ON CAREFUL, FUNDAMENTAL ANALYSIS AND
BOTTOM-UP STOCK SELECTION WILL ADD VALUE OVER THE LONG TERM. WE BELIEVE THAT
OUR APPROACH, WITH ITS EMPHASIS ON HIGH QUALITY COMPANIES WITH GOOD RELATIVE
VALUE, LEAVES THE PORTFOLIO WELL POSITIONED FOR WHAT COULD BE A VERY VOLATILE
PERIOD DURING THE REMAINDER OF THE YER.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
EUGENE BOLTON
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER
This material must be preceded or accompanied by the Fund's
current prospectus.
18
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (4.61%)
Federal Home Loan Bank
5.96%, due 06/09/98 ............... $ 1,500,000 $ 1,499,442
U.S. Treasury Notes
7.25%, due 02/15/98 ............... 2,000,000 2,018,610
U.S. Treasury Notes
5.38%, due 11/30/97 ............... 2,500,000 2,498,343
------------
Total Short-Term U.S. Government
Obligations .....................
(cost: $ 6,016,395) .............................. 6,016,395
------------
COMMERCIAL PAPER (37.25%)
AUTOMOTIVE (2.99%)
Ford Motor Credit Company
5.64%, due 12/02/97 ............... 4,000,000 3,903,493
------------
COMMERCIAL BANKS (25.88%)
Abbey National Treasury Services
5.61%, due 08/01/97 ............... 2,500,000 2,487,923
------------
Abbey National Treasury Services
5.75%, due 02/05/98 ............... 3,000,000 3,000,000
ABN-Amro Bank N.V.
5.61%, due 08/19/97 ............... 1,500,000 1,488,536
Associates Corporation
of North America
5.55%, due 07/24/97 ............... 6,000,000 5,978,725
Barclays US Funding Corp.
5.66%, due 08/22/97 ............... 3,500,000 3,471,387
Cregem North America, Inc.
5.63%, due 07/21/97 ............... 4,000,000 3,987,489
Den Danske Corp.
5.63%, due 07/02/97 ............... 5,000,000 4,999,218
Export-Import Bank of Korea
5.60%, due 07/10/97 ............... 2,500,000 2,496,500
UBS Finance, Inc.
6.05%, due 07/01/97 ............... 5,884,000 5,884,000
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.58%)
General Electric Capital Corporation
5.55%, due 07/22/97 ............... 6,000,000 5,980,575
INDUSTRIAL MACHINERY & EQUIPMENT (3.80%)
Asea Brown Boveri Ltd.
5.55%, due 08/25/97 ............... 5,000,000 4,957,604
------------
Total Commercial Paper
(cost: $ 48,635,450) .............................. 48,635,450
------------
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------------
SHORT-TERM OBLIGATIONS (12.64%)
COMMERCIAL BANKS (4.59%)
Bayerische Landesbank -
New York (a)
5.56%, due 06/26/98 ............... $ 3,000,000 $ 2,997,698
Korea Development Bank (a)
5.84%, due 06/16/98 ............... 3,000,000 2,999,442
------------
FINANCE (5.75%)
Asset-Backed Securities
Investment Trust
5.38%, due 10/15/97 ............... 2,500,000 2,500,000
Liquid Asset-Backed Securities
Trust (a) (b)
5.69%, due 06/30/98 ............... 5,000,000 5,000,000
INDUSTRIAL MACHINERY & EQUIPMENT (2.30%)
John Deere Capital Corporation
5.85%, due 07/03/97 ............... 3,000,000 2,999,988
------------
Total Short-Term Obligations
(cost: $ 16,497,128).................. 16,497,128
------------
BANK OBLIGATIONS (45.43%)
Bank of America Bank Note
5.85%, due 11/03/97 ............... 2,500,000 2,500,000
Bank of Nova Scotia
5.65%, due 09/23/97 ............... 6,000,000 6,000,000
Bankers Trust New York Corporation
5.70%, due 07/10/97 ............... 5,000,000 5,000,000
Bayerische Landesbank- New York
5.71%, due 02/06/98 ............... 3,000,000 2,999,480
Canadian Imperial Bank of
Commerce
5.70%, due 08/14/97 ............... 4,810,000 4,810,235
Dai-Ichi Kangyo Bank
5.86%, due 07/28/97 ............... 3,500,000 3,500,096
Deutsche Bank AG
5.69%, due 10/28/97 ............... 2,000,000 1,999,686
Harris Trust Bank
5.59%, due 07/31/97 ............... 6,000,000 6,000,000
Industrial Bank of Japan
5.67%, due 07/11/97 ............... 3,000,000 3,000,008
Industrial Bank of Japan
5.84%, due 08/18/97 ............... 2,500,000 2,500,033
NationsBank Corporation
5.54%, due 07/15/97 ............... 5,000,000 5,000,000
Rabobank Nederland N.V. - NY
5.99%, due 03/24/98 ............... 3,000,000 2,998,956
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
19
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
PRINCIPAL MARKET
AMOUNT VALUE
---------------- --------------
BANK OBLIGATIONS (CONTINUED)
Sanwa Bank Ltd.
5.76%, due 09/17/97 ...... $ 5,000,000 $ 5,000,107
Societe Generale- New York
5.70%, due 07/14/97 ...... 3,000,000 3,000,000
Sumitomo Bank Ltd.
5.70%, due 07/03/97 ...... 5,000,000 5,000,011
--------------
Total Bank Obligations
(cost: $ 59,308,612) ........................ 59,308,612
--------------
Total Investment Securities
(cost: $ 130,457,585)........................ $ 130,457,585
==============
SUMMARY
Investments at market value 99.93% $ 130,457,585
Other Assets in
Excess of Liabilities ... 0.07% 95,445
------------ --------------
Net Assets .................. 100.00% $ 130,553,030
============ ==============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Floating rate note. Rate listed is as of June 30, 1997.
(b) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
20
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
U.S. GOVERNMENT OBLIGATIONS (17.77%)
U.S. Treasury Notes
6.25% due 05/31/00 .................. $ 9,200,000 $ 9,201,748
U.S. Treasury Notes
6.38%, due 05/15/00 .................. 1,000,000 1,003,281
U.S. Treasury Notes (a)
6.50%, due 10/15/06 .................. 6,500,000 6,468,150
------------
Total U.S. Government Obligations
(cost: $ 16,643,677) ................................. 16,673,179
------------
CORPORATE DEBT SECURITIES (73.76%)
AUTOMOTIVE (6.47%)
Daimler-Benz of North America, Inc.
7.38%, due 09/15/06 .................. 2,000,000 2,037,500
General Motors Corporation
7.13%, due 05/01/03 .................. 4,000,000 4,030,000
BUSINESS CREDIT INSTITUTIONS (2.20%)
First American Capital Trust
8.50%, due 04/15/12 .................. 2,000,000 2,060,000
CHEMICALS & ALLIED PRODUCTS (3.17%)
Praxair Inc.
6.90%, due 11/01/06 .................. 3,000,000 2,970,000
COMMERCIAL BANKS (13.74%)
BankAmerica Corporation
7.20%, due 04/15/06 .................. 2,000,000 2,000,000
NationsBank Corporation
7.50%, due 09/15/06 .................. 3,000,000 3,063,750
Swiss Bank Corporation
6.75%, due 07/15/05 .................. 4,000,000 3,925,000
Wachovia Corporation
6.38%, due 04/15/03 .................. 4,000,000 3,905,000
COMPUTER & OFFICE EQUIPMENT (2.18%)
International Business Machines
Corporation
7.25%, due 11/01/02 .................. 2,000,000 2,045,000
FOOD & KINDRED PRODUCTS (9.50%)
Campbell Soup Company
6.90%, due 10/15/06 .................. 1,000,000 997,500
CPC International, Inc.
6.15%, due 01/15/06 .................. 2,000,000 1,892,500
Hershey Foods Corporation
6.70%, due 10/01/05 .................. 3,000,000 2,970,000
Sysco Corporation
7.25%, due 04/15/07 .................. 3,000,000 3,048,750
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
CORPORATE DEBT SECURITIES (CONTINUED)
GAS PRODUCTION & DISTRIBUTION (4.31%)
Texaco Inc.
7.09%, due 02/01/07 .................. $ 4,000,000 $ 4,040,000
MOTION PICTURES (4.21%)
Walt Disney Company
6.75%, due 03/30/06 .................. 4,000,000 3,945,000
OIL & GAS EXTRACTION (1.03%)
Mitchell Energy & Development
Company
6.75%, due 02/15/04 .................. 1,000,000 968,750
PAINT, GLASS, WALLPAPER STORES (4.22%)
Sherwin-Williams Company
6.85%, due 02/01/07 .................. 4,000,000 3,955,000
PERSONAL CREDIT INSTITUTIONS (8.33%)
Ford Motor Credit Company
6.75%, due 08/15/08 .................. 4,000,000 3,870,000
Sears Roebuck Acceptance
Corporation
7.00%, due 06/15/07 .................. 4,000,000 3,945,200
PRINTING & PUBLISHING (2.11%)
Tribune Company
6.88%, due 11/01/06 .................. 2,000,000 1,982,500
RAILROADS (1.08%)
CSX Corporation
7.25%, due 05/01/04 .................. 1,000,000 1,010,000
RUBBER & MISC. PLASTIC PRODUCTS (1.04%)
Rubbermaid, Inc.
6.60%, due 11/15/06 .................. 1,000,000 977,500
SECURITY & COMMODITY BROKERS (8.57%)
Morgan Stanley, Dean Witter,
Discover and Co.
6.88%, due 03/01/03 .................. 4,000,000 3,970,000
Merrill Lynch & Co., Inc.
7.38%, due 05/15/06 .................. 4,000,000 4,070,000
TELECOMMUNICATIONS (1.60%)
MCI Communications Corporation
6.95%, due 08/15/06 .................. 1,500,000 1,500,000
------------
Total Corporate Debt Securities
(cost: $ 69,398,030)..................... 69,178,950
------------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
21
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
PRINCIPAL MARKET
AMOUNT VALUE
---------------- -------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATION (1.07%)
Fannie Mae
5.50%, due 07/02/97 ............ $ 1,000,000 $ 999,847
-------------
Total Short-Term U.S. Government
Obligation
(cost: $ 999,847) ................................. 999,847
-------------
COMMERCIAL PAPER (5.99%)
General Electric Capital Corporation
5.50%, due 07/03/97 ............ 2,000,000 1,999,389
Household Finance Corporation
6.08%, due 07/01/97 ............ 3,620,000 3,620,000
-------------
Total Commercial Paper
(cost: $ 5,619,389)................................. 5,619,389
-------------
Total Investment Securities
(cost: $ 92,660,943) .............................. $ 92,471,365
=============
SUMMARY
Investments at market value ...... 98.59% $ 92,471,365
Other Assets in
Excess of Liabilities ......... 1.41% 1,320,921
------------ -------------
Net Assets ........................ 100.00% $ 93,792,286
============ =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At June 30, 1997, security is on loan. See footnote 1C to financial
statements.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
22
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
U.S. GOVERNMENT OBLIGATIONS (0.35%)
U.S. Treasury Notes
5.50%, due 09/30/97 ............ $ 6,000,000 $ 6,001,740
------------
Total U.S. Government Obligation
(cost: $ 6,005,175) ........................... 6,001,740
------------
CONVERTIBLE BONDS (0.04%)
ELECTRONIC COMPONENTS & ACCESSORIES (0.04%)
Lernout & Hauspie Speech Products
N. V. 144A (c)
8.00%, due 11/15/01 ............ 445,000 621,331
------------
Total Convertible Bond
(cost: $ 445,000) .............................. 621,331
------------
NUMBER OF MARKET
SHARES VALUE
----------- -------------
PREFERRED STOCKS (D)
COMPUTER & DATA PROCESSING SERVICE (D)
SAP AG - Vorzug ..................... 400 $ 82,999
------------
Total Preferred Stock
(cost: $ 57,162) .............................. 82,999
------------
COMMON STOCKS (86.61%)
AEROSPACE (1.32%)
Boeing Company (b) .................. 424,700 22,535,644
AIR TRANSPORTATION (0.72%)
UAL Corporation (a) ............... 171,375 12,264,023
BEVERAGES (3.42%)
Coca-Cola Company .................. 870,750 58,775,625
CHEMICALS & ALLIED PRODUCTS (2.48%)
E.I. du Pont de Nemours and
Company ........................ 286,700 18,026,263
Gillette Company .................. 230,750 21,863,563
Monsanto Company .................. 65,125 2,804,445
COMMERCIAL BANKS (12.51%)
BankAmerica Corporation ............ 840,050 54,235,728
Chase Manhattan Corporation ......... 347,425 33,721,939
Citicorp ........................... 674,680 81,341,108
Wells Fargo & Company ............... 169,958 45,803,681
COMMUNICATIONS EQUIPMENT (4.44%)
Ascend Communications,
Inc. (a) (b) ..................... 320,175 12,606,891
Lucent Technologies, Inc. ......... 266,025 19,170,427
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
Northern Telecom Limited ............ 5,800 $ 527,800
Oy Nokia AB - ADR .................. 540,500 39,861,875
PairGain Technologies, Inc. (a) ... 5,550 86,025
QUALCOMM, Inc. (a) (b) ............ 14,425 733,872
Sawtek Inc. (a) ..................... 2,900 97,150
Telefonaktiebolaget LM
Ericsson - ADR .................. 10,350 407,531
Telefonica del Peru S.A. - ADR ...... 56,475 1,478,939
Tellabs, Inc. (a) .................. 11,575 646,753
ViaSat, Inc. (a) .................. 22,975 333,138
Xylan Corporation (a) (b) ......... 23,525 399,925
COMPUTER & DATA PROCESSING SERVICES (11.20%)
3DLabs Inc., Ltd. (a) ............... 1,725 50,025
Aspen Technologies, Inc. (a) ...... 2,875 108,172
BEA Systems, Inc. (a) ............... 17,325 316,181
BMC Software, Inc. (a) ............ 8,075 447,153
Brilliant Digital Entertainment,
Inc. (a) ........................ 84,150 604,828
Cadence Design Systems,
Inc. (a) ........................ 25,500 854,250
Compuware Corporation (a) ......... 5,700 272,175
First Data Corporation ............ 1,126,325 49,487,905
JBA Holdings Plc .................. 2,814 41,243
Legato Systems, Inc. (a) ............ 2,875 53,188
META Group, Inc. (a) ............... 25,825 561,694
Microsoft Corporation (a) ......... 782,400 98,875,800
Oracle Corporation (a) ............ 1,700 85,638
Parametric Technology
Company (a) ..................... 18,375 782,086
Pegasystems Inc. (a) ............... 2,325 72,947
PeopleSoft, Inc. (a) (b) ............ 677,725 35,749,994
Platinum Technology, Inc. (a) ...... 2,900 38,425
Puma Technology, Inc. (a) ......... 12,625 105,734
Remedy Corporation (a) ............ 3,450 138,000
Sapient Corporation (a) (b) ......... 17,225 852,638
Scopus Technology, Inc. (a) ......... 2,850 63,769
Sun Microsystems, Inc. (a) ......... 13,875 516,409
Teradyne, Inc. (a) .................. 3,450 135,413
TTI Team Telecom International
Ltd. (a) ........................ 73,000 337,625
Veritas Software Corporation (a) ... 20,825 1,046,456
Viasoft, Inc. (a) .................. 16,775 851,331
Wang Laboratories, Inc. (a) ......... 6,325 134,802
COMPUTER & OFFICE EQUIPMENT (5.78%)
3Com Corporation (a) ............... 173,775 7,819,875
Asustek Computer Inc. (a) (c) ...... 25,725 302,269
Cisco Systems, Inc. (a) ............ 389,150 26,121,694
Compaq Computer
Corporation (a) .................. 1,175 116,619
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
23
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
NUMBER OF MARKET
SHARES VALUE
----------- ---------------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (CONTINUED)
Dell Computer Corporation (a) (b) . 549,200 $ 64,496,675
EMC Corporation (a) ..................... 6,900 269,100
Emulex Corporation (a) .................. 4,075 62,144
International Business Machines
Corporation ........................ 2,025 182,630
Storage Technology
Corporation (a) ..................... 1,150 51,175
ELECTRICAL GOODS (0.01%)
Motorola, Inc. ........................ 1,150 87,400
ELECTRONIC COMPONENTS & ACCESSORIES (5.68%)
Altera Corporation (a) .................. 2,300 116,149
Analog Devices, Inc. (a) ............... 7,483 198,775
Atmel Corporation (a) .................. 6,325 177,099
Intel Corporation ..................... 392,050 55,597,590
Ramtron International
Corporation (a) ..................... 5,750 34,858
Sanmina Corporation (a) (b) ............ 2,275 144,462
Tegal Corporation (a) .................. 8,075 48,449
Texas Instruments, Inc. ............... 491,975 41,356,647
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.40%)
General Electric Company ............... 1,156,050 75,576,769
FINANCE (2.62%)
Federal Home Loan Mortgage
Corporation ........................ 518,000 17,806,250
Fannie Mae .............................. 622,870 27,172,704
FOOD STORES (0.57%) ..................
Starbucks Corporation (a) (b) ......... 252,300 9,823,931
HOTELS & OTHER LODGING PLACES (0.36%)
Mirage Resorts, Inc. (a) ............... 242,950 6,134,488
INDUSTRIAL MACHINERY & EQUIPMENT (0.01%)
Applied Materials, Inc. (a) ............ 1,725 122,152
INSTRUMENTS & RELATED PRODUCTS (0.55%)
Credence Systems
Corporation (a) ..................... 4,625 138,461
KLA-Tencor Corporation (a) ............ 4,075 198,656
Xerox Corporation ..................... 116,200 9,165,275
INSURANCE (3.32%)
Oxford Health Plans, Inc. (a) (b) ...... 588,800 42,246,400
United Healthcare Corporation ......... 284,250 14,781,000
NUMBER OF MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
MANAGEMENT SERVICES (0.02%)
Whittman-Hart, Inc. (a) ............... 14,900 $ 419,063
MANUFACTURING INDUSTRIES (0.02%)
Mattel, Inc. ........................... 9,200 311,650
MEDICAL INSTRUMENTS & SUPPLIES (0.02%)
Photoelectron Corporation (a) ......... 56,850 412,163
PERSONAL CREDIT INSTITUTIONS (2.35%)
American Express Company (b) ............ 383,525 28,572,613
Household International, Inc. ......... 101,475 11,916,970
PETROLEUM REFINING (3.94%)
Amoco Corporation ..................... 231,450 20,121,684
Mobil Corporation ..................... 231,650 16,186,544
Texaco Inc. ........................... 289,500 31,483,125
PHARMACEUTICALS (15.69%)
Astra AB - Class A Free ............... 518,891 9,658,020
Bristol-Myers Squibb Company ............ 551,250 44,651,250
Eli Lilly & Company ..................... 422,250 46,157,203
Pfizer, Inc. ........................... 590,075 70,513,963
Smithkline Beecham Plc .................. 66,388 1,222,343
SmithKline Beecham Plc - ADR ............ 433,675 39,735,472
Warner-Lambert Company .................. 466,100 57,912,925
RESEARCH & TESTING SERVICES (0.01%)
Bio-Technology General
Corporation (a) (b) .................. 17,225 232,538
RUBBER & MISC. PLASTIC PRODUCTS (0.40%)
Nike, Inc. - Class B (b) ............... 117,775 6,875,116
SECURITY & COMMODITY BROKERS (4.77%)
Merrill Lynch & Company, Inc. ......... 1,376,152 82,053,063
TELECOMMUNICATIONS (D)
WorldCom, Inc. (a) ..................... 1 16
TRANSPORTATION & PUBLIC UTILITIES (D)
Sabre Group Holdings Inc. (a) ......... 2,875 77,984
---------------
Total Common Stocks
(cost: $ 1,000,699,634) ............... 1,489,169,627
---------------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
24
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------- ---------------
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (6.09%)
Federal Home Loan Bank
5.37%, due 07/31/97 ......... $ 50,000,000 $ 49,776,251
Federal Home Loan Bank
5.37%, due 07/02/97 ......... 30,000,000 29,995,525
Fannie Mae
5.47%, due 07/10/97 ......... 25,000,000 24,965,812
----------------
Total Short-Term U.S. Government
Obligations
(cost: $ 104,737,588) ........................ 104,737,588
----------------
COMMERCIAL PAPER (7.50%)
General Electric Capital
Corporation
5.38%, due 07/03/97 ......... 25,000,000 24,992,528
Coca-Cola Enterprises
5.47%, due 08/01/97 ......... 20,000,000 19,905,794
Deutsche Bank AG
5.55%, due 07/23/97 ......... 20,000,000 19,932,167
Ford Motor Credit Company
5.57%, due 07/08/97 ......... 25,000,000 24,972,923
Prudential Funding Corporation
6.00%, due 07/01/97 ......... 39,100,000 39,100,000
----------------
Total Commercial Paper
(cost: $ 128,903,412) ........................ 128,903,412
----------------
Total Investment Securities
(cost: $ 1,240,847,970) ..................... $ 1,729,516,696
================
SUMMARY
Investments at market value... 100.59% $ 1,729,516,696
Other Liabilities in
Excess of Assets .......... (0.59%) (10,169,504)
------------- ---------------
Net Assets .................. 100.00% $ 1,719,347,192
============= ===============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET VALUE PERCENTAGE
----------------- -----------
<S> <C> <C>
Germany ............ $ 82,999 0.00%
Great Britain ...... 1,263,586 0.07%
Sweden ............ 9,658,020 0.56%
United States ...... 1,708,342,587 99.37%
---------------- -------
Net Assets ......... $ 1,719,347,192 100.00%
================ =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(d) Percentage is less than .01%.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
25
<PAGE>
WRL SERIES FUND, INC.
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (21.75%)
U.S. Treasury Bonds
7.50%, due 11/15/16 .................. $ 750,000 $ 801,285
U.S. Treasury Notes
5.88%, due 02/15/00 .................. 500,000 495,850
U.S. Treasury Notes
7.50%, due 05/15/02 .................. 500,000 523,170
U.S. Treasury Notes (a)
6.50%, due 10/15/06 .................. 1,500,000 1,492,650
U.S. Treasury Notes
7.25%, due 02/15/98 .................. 750,000 756,825
U.S. Treasury Notes (a)
5.13%, due 04/30/98 .................. 1,500,000 1,492,635
-----------
Total U.S. Government Obligations
(cost: $ 5,542,998) .............................. 5,562,415
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.32%)
Atlantic Auto Grantor Trust (b)
Series 1996-A Class A
6.70%, due 09/15/02 .................. 691,582 692,014
Federal Agricultural Mortgage
Corporation
7.03%, due 05/26/98 .................. 300,000 303,066
Government Trust Certificate - Israel
Class 1-B
U.S. Government Guaranteed
5.25%, due 03/15/98 .................. 500,000 497,500
Government Trust Certificate - Israel
Class 1-C
U.S. Government Guaranteed
9.25%, due 11/15/01 .................. 360,267 379,181
-----------
Total U.S. Government Agency Obligations
(cost: $ 1,890,874)................................. 1,871,761
-----------
MORTGAGE-BACKED SECURITIES (14.88%)
Fannie Mae Series 1992-58 Class C
6.00%, due 08/25/13 ............... 222,518 221,628
Fannie Mae Strip Series 66 Class 1
7.50%, due 01/01/20 .................. 229,333 230,849
Federal Home Loan Mortgage
Corporation Gold Pool
6.50%, due 05/01/11 .................. 1,006,695 987,498
Federal Home Loan Mortgage
Corporation Series 1096 Class D
7.00%, due 06/15/20 .................. 862,152 862,540
PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
Federal Home Loan Mortgage
Corporation Series 1115 Class I
7.50%, due 10/15/05 .................. $ 547,175 $ 549,024
Government National Mortgage
Association
7.00%, due 06/15/23 .................. 851,069 835,903
Prudential-Bache CMO Trust
Series 9 Class E
9.88%, due 08/01/17 .................. 116,383 116,834
-----------
Total Mortgage-Backed Securities
(cost: $ 3,849,178) .................. 3,804,276
-----------
ASSET-BACKED SECURITIES (12.88%)
American Express Master Trust
Series 1994-2 Class A
7.60%, due 08/15/02 .................. 1,000,000 1,035,810
Choice Credit Card Master Trust
Series 1992-2 Class B
7.20%, due 03/15/98 .................. 100,000 101,210
Cityscape Home Equity Loan Trust
Series 1996-4 Class A7
7.20%, due 11/25/18 .................. 750,000 750,315
OHA Auto Grantor Trust (b)
Series 1997-1 Class A
6.50%, due 12/15/02 .................. 447,732 445,984
Standard Credit Card Master Trust
Series 1993-2 Class A
5.95%, due 10/07/04 .................. 1,000,000 961,740
-----------
Total Asset-Backed Securities
(cost: $ 3,199,718) .................. 3,295,059
-----------
SUPRANATIONAL AGENCY OBLIGATIONS (7.14%)
African Development Bank
9.30%, due 07/01/00 .................. 500,000 536,875
African Development Bank
7.75%, due 12/15/01 .................. 500,000 520,000
International Bank For Reconstruction
& Development
7.90%, due 04/01/98 .................. 250,000 253,750
International Bank For Reconstruction
& Development
8.02%, due 04/01/99 .................. 500,000 516,250
-----------
Total Supranational Agency Obligations
(cost: $ 1,816,940)..................... 1,826,875
-----------
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
26
<PAGE>
WRL SERIES FUND, INC.
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------------- -------------
<S> <C> <C>
CORPORATE DEBT SECURITIES (18.20%)
HOLDING & OTHER INVESTMENT OFFICES (2.93%)
Kimco Realty Corporation (c)
6.34%, due 02/10/99 ............... $ 750,000 $ 749,977
INSURANCE (2.87%)
Progressive Corporation
6.60%, due 01/15/04 ............... 750,000 733,125
OIL & GAS EXTRACTION (2.00%)
Shell Canada Limited
7.38%, due 06/01/99 ............... 500,000 510,625
PAPER & ALLIED PRODUCTS (2.96%)
Scott Paper Company
9.75%, due 10/01/97 ............... 750,000 757,133
PERSONAL CREDIT INSTITUTIONS (2.61%)
General Electric Capital Corporation
8.30%, due 09/20/09 ............... 600,000 666,750
SECURITY & COMMODITY BROKERS (4.83%)
Goldman Sachs Group LP 144A (b) .
6.20%, due 02/15/01 ............... 700,000 682,500
Lehman Brothers Holdings, Inc.
8.80%, due 03/01/15 ............... 500,000 555,000
-------------
Total Corporate Debt Securities
(cost: $ 4,681,676) .............................. 4,655,110
-------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (11.71%)
Farm Credit Discount Note
5.40%, due 07/07/97 ............... 1,000,000 999,100
Farm Credit Discount Note
5.42%, due 07/21/97 ............... 1,000,000 996,989
Federal Home Loan
Mortgage Corporation
5.41%, due 07/14/97 ............... 1,000,000 998,046
-------------
Total Short-Term U.S. Government
Obligations
(cost: $ 2,994,135) .............................. 2,994,135
-------------
PRINCIPAL MARKET
AMOUNT VALUE
---------------- -------------
SHORT-TERM OBLIGATION (4.97%)
Prudential-Bache Securities (d)
5.27%, Repurchase Agreement
dated 06/30/97 to be repurchased
at $ 1,270,313 on 07/01/97......... $ 1,270,127 $ 1,270,127
-------------
Total Short-Term Obligation
(cost: $ 1,270,127) ............... 1,270,127
-------------
Total Investment Securities
(cost: $ 25,245,646) ............... $ 25,279,758
=============
SUMMARY
Investments at market value ...... 98.85% $ 25,279,758
Other Assets in
Excess of Liabilities ......... 1.15% 294,731
------------ -------------
Net Assets ........................ 100.00% $ 25,574,489
============ =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(b) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(c) Floating rate note. Rate listed is as of June 30, 1997.
(d) Collateralized by $ 1,583,406 Fannie Mae 6.01%, due 01/01/34; market value
and accrued interest aggregated $ 1,295,533 for this collateral at June
30, 1997.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
27
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
PREFERRED STOCKS (2.31%)
BEER, WINE, & DISTILLED BEVERAGES (0.24%)
Companhia Cervejaria Brahma ............... 2,297,000 $ 1,760,190
COMMERCIAL BANKS (D)
Banco Bradesco S.A. ..................... 1 0
COMMUNICATIONS EQUIPMENT (0.60%)
Ericsson Telecomunicacoes S/A ............ 75,700,000 4,395,030
ELECTRIC SERVICES (0.42%)
Companhia Energetica de Minas
Gerais - ADR ........................... 54,972,000 2,765,092
Companhia Paranaense de Energia -
Copel - Preferred B .................. 13,000,000 259,638
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.03%)
Centrais Eletricas de Santa
Catarina SA ........................... 162,000 219,712
MEDICAL INSTRUMENTS & SUPPLIES (0.78%)
Fresenius AG .............................. 21,364 4,849,432
Fresenius Medical Care AG (a) ............ 11,611 833,255
OIL & GAS EXTRACTION (0.24%)
Petroleo Brasileiro S/A-Petrobas ......... 6,261 1,715,741
------------
Total Preferred Stocks
(cost: $ 11,594,819) ................................. 16,798,090
------------
COMMON STOCKS (98.03%)
AGRICULTURE (0.42%)
Parmalat Finanziaria S.p.A. ............... 2,146,719 3,051,250
AIR TRANSPORTATION (1.87%)
Deutsche Lufthansa AG ..................... 145,081 2,781,703
Ryanair Holdings plc (a) (b) ............ 172,850 4,645,344
SAS Danmark A/S ........................... 91,314 1,065,467
SAS Norske ASA - Class B ............... 47,154 498,559
SAS Sverige AB ........................... 189,471 2,302,080
Swissair AG (a) ........................... 2,072 2,320,663
AMUSEMENT & RECREATION SERVICES (0.25%)
London Clubs International Plc ............ 290,807 1,835,645
APPAREL PRODUCTS (0.58%)
Adolfo Dominguez SA (a) .................. 81,691 3,215,526
Gucci Group nv - New York
registered share ..................... 15,475 996,203
NUMBER OF MARKET
SHARES VALUE
------------ -------------
COMMON STOCKS (CONTINUED)
APPAREL & ACCESSORY STORES (0.03%)
Cortefiel, S.A. ........................... 5,794 $ 252,836
AUTOMOTIVE (3.94%)
Bajaj Auto Limited - Sponsored
GDR - 144A (b) (c) ..................... 36,920 1,270,971
Bayerische Motoren Werke AG ............... 1,456 1,204,292
Mahindra & Mahindra Limited -
Sponsored GDR (a) (b) (c) ............ 35,132 518,197
Tata Engineering & Locomotive
Company Limited - GDR
144A (b) (c) ........................... 116,350 1,785,973
Tata Engineering & Locomotive
Company Limited - Sponsored
GDR 144A (b) (c) ..................... 79,750 1,224,163
Tata Engineering & Locomotive
Company Limited - Sponsored
GDR 144A (b) (c) ..................... 92,919 1,426,307
Volkswagen AG (b) ........................ 27,054 20,733,233
Yamaha Motor Co., Ltd. .................. 45,000 447,878
BEVERAGES (0.43%)
Fomento Economico Mexicano,
SA de C.V. - Class B .................. 346,300 2,059,204
South African Breweries Limited
144A - ADR (c) ........................ 34,305 1,054,879
BUSINESS CREDIT INSTITUTIONS (0.27%)
Credit Communal Holding/Dexia (b) (c) 18,310 1,966,219
BUSINESS SERVICES (4.26%)
Hutchison Whampoa Limited ............... 421,000 3,641,116
Investment AB Bure ........................ 158,204 1,993,756
Manpower, Inc. ........................... 46,825 2,083,713
Merkantildata ASA ........................ 39,185 785,838
Prosegur, CIA de Seguridad SA ............ 38,595 471,469
Robert Half International, Inc. (a) ...... 23,000 1,082,438
Securitas AB - Class B .................. 501,747 14,138,103
SEMA Group Plc ........................... 58,754 1,206,060
Sophus Berendsen A/S ..................... 38,439 5,555,772
CHEMICALS & ALLIED PRODUCTS (2.82%)
Akzo Nobel 144A (c) ..................... 36,839 5,045,668
Altana AG ................................. 3,328 3,548,137
Monsanto Company ........................ 163,525 7,041,795
Nu Skin Asia Pacific Inc. -
Class A (a) ........................... 1,750 46,375
SGL Carbon AG 144A (c) .................. 4,885 668,656
Shiseido Co. Ltd. ........................ 236,000 3,894,185
Victrex plc .............................. 78,155 227,793
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
28
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (10.26%)
Amtssparekassen Fyn A/S ..................... 23,815 $ 1,534,600
Banco Frances del Rio de la Plata
S.A. - Sponsored ADR (b) .................. 24,121 783,933
Bank Handlowy W.
Warszawie (a) (c) ........................ 148,512 1,511,852
BankAmerica Corporation ..................... 21,450 1,384,866
Banque Nationale de Paris (a) (b) ............ 123,992 5,107,550
Barclays PLC - Sponsored ADR .................. 299,991 5,955,649
BG Bank A/S ................................. 11,971 661,450
Citicorp .................................... 45,550 5,491,622
Credit Suisse Group - Registered
Shares (a) ................................. 37,643 4,831,973
Credito Italiano (b) ........................ 1,005,590 1,835,057
Deutsche Bank AG (b) ........................ 192,050 11,217,410
Deutsche Pfandbrief &
Hypothekenbank AG (b) ..................... 62,964 3,619,907
Equitable Banking Corporation (a) ............ 163,945 594,184
ING Groep N.V. .............................. 167,177 7,703,420
Jyske Bank A/S .............................. 16,447 1,416,393
Mitsubishi Trust & Banking
Corporation .............................. 103,000 1,627,640
Mitsui Trust & Banking Company,
Ltd. (b) ................................. 312,000 2,356,207
Nordbanken AB ................................. 77,265 2,606,593
Skandinaviska Enskilda Banken -
Class A .................................... 204,927 2,211,747
Societe Generale .............................. 23,321 2,601,930
Spar Nord Holding A/S ........................ 1,502 70,102
Sparbanken Sverige AB - Class A ............... 88,149 1,959,728
Sumitomo Trust & Banking (b) .................. 253,000 2,716,867
Sydbank A/S ................................. 38,115 1,738,760
Unidanmark A/S - Class A ..................... 4,843 271,972
Wells Fargo & Company ........................ 10,258 2,764,530
COMMUNICATION (0.21%)
Freepages Group Plc (a) ..................... 2,500,000 1,498,950
COMMUNICATIONS EQUIPMENT (1.10%)
Globalstar Telecommunications
Ltd. (a) (b) .............................. 38,100 1,166,813
Lucent Technologies, Inc. ..................... 83,150 5,991,997
SK Telecom Co. Ltd. - ADR (b) ............... 75,517 759,890
Tandberg ASA (a) .............................. 3,754 39,947
COMPUTER & DATA PROCESSING SERVICE (6.96%)
Atos SA (a) ................................. 56,984 6,735,721
Cap Gemini Sogeti SA (b) ..................... 70,085 3,695,146
Computer Sciences Corporation (a) ............ 6,800 490,450
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICE (CONTINUED)
Dassault Systemes S.A. -
ADR (a) (b) .............................. 21,200 $ 1,510,500
Enator AB (a) ................................. 102,601 1,830,124
JBA Holdings Plc .............................. 239,120 3,504,638
Logica Plc .................................... 502,607 5,796,862
Misys Plc .................................... 379,626 8,614,639
NTT Data Corporation (b) ..................... 2,470 9,553,082
Parametric Technology
Company (a) (b) ........................... 206,225 8,777,452
Prosolvia AB - Class B
144A (a) (c) .............................. 48,450 74,523
COMPUTER & OFFICE EQUIPMENT (1.02%)
Electronics For Imaging, Inc. (a) ............ 47,000 2,220,750
International Business Machines
Corporation .............................. 32,000 2,886,000
Oce-Van Der Grinten N.V. ..................... 18,146 2,339,393
CONSTRUCTION (0.45%)
Jiangsu Expressway Company Ltd. -
Class H 144A (a) (c) ..................... 9,174,000 3,256,635
DEPARTMENT STORES (0.17%)
Isetan Co. .................................... 102,000 1,264,536
ELECTRIC SERVICES (0.80%)
Companhia Energetica de Minas
Gerais - Sponsored ADR (b) ............... 7,250 365,008
Electricidade de Portugal, S.A. ............... 70,896 1,288,114
Mosenergo - Sponsored ADR
144A (c) ................................. 15,500 643,250
VEBA AG ....................................... 62,056 3,485,892
ELECTRONIC COMPONENTS & ACCESSORIES (1.47%)
Electrocomponents Plc ........................ 750,428 5,605,523
Fujitsu Ltd. (a) .............................. 279,000 3,872,970
Simac Techniek N.V. ........................... 13,724 1,173,947
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (8.01%)
Canon, Inc. ................................. 132,000 3,595,600
Hitachi Ltd. (a) .............................. 642,000 7,174,437
Le Carbone-Lorraine 144A (c) .................. 4,830 1,174,703
Philips Electronics N.V. ..................... 191,902 13,737,994
Philips Electronics N.V. - New York
registered shares (b) ..................... 269,384 19,361,975
Pricer AB - Class B (a) ..................... 124,652 4,285,789
Sony Corporation .............................. 78,500 6,846,647
Sony Corporation - ADR (b) .................. 5,475 481,800
UCAR International, Inc. (a) .................. 34,275 1,568,081
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
29
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ENGINEERING & MANAGEMENT SERVICES (1.82%)
Autoliv AB (a) ........................... 35,300 $ 1,352,849
Cubiertas y Mzov SA ..................... 12,693 1,429,955
Electrolux AB - Series B .................. 118,657 8,558,101
Metra Oy - Class B ........................ 61,000 1,838,907
ENVIRONMENTAL SERVICES (2.59%)
Rentokil Initial Plc ..................... 5,360,628 18,838,346
FINANCE (1.12%)
Lloyds TSB Group plc ..................... 473,439 4,857,238
Student Loan Marketing Association . 26,125 3,317,875
FOOD STORES (0.47%)
Carrefour SA (a) ........................ 1,939 1,407,496
Disco S.A. - Sponsored ADR (a) ............ 50,550 2,003,044
FOOD & KINDRED PRODUCTS (1.74%)
AB Sardus 144A (a) (c) .................. 45,359 389,884
Hero AG (c) .............................. 1,567 874,310
Koninklijke Nutricia Verenigde
Bedrijven N.V. ........................ 54,042 8,530,051
Raision Tehtaat Oy ........................ 39,854 2,832,786
HEALTH SERVICES (0.20%)
Biocompatibles International Plc (a) ...... 40,688 882,650
Omnicare, Inc. ........................... 18,675 585,928
HOLDING & OTHER INVESTMENT OFFICES (3.26%)
Compagnie Bancaire SA ..................... 6,264 799,020
Corp. Financiera Reunida, S.A. (a) ...... 56,873 239,303
Dexia France (a) ........................ 5,603 545,082
Finansierings Instituttet for Industri og
Handvaerk A/S - Class B ............... 4,544 115,618
First Pacific Company Ltd. ............... 33,000 42,172
Grupo Carso SA de CV ..................... 201,083 1,397,929
Incentive AB - Class B .................. 15,577 1,423,486
Kinnevik AB - Class B .................. 137,601 3,832,823
Lagardere S.C.A. (b) ..................... 305,957 8,882,572
Nomura Securities Company Ltd. ............ 166,000 2,289,855
Quinenco S.A. (a) (b) ..................... 149,475 2,765,288
Vedior NV-CVA 144A (a) (c) ............... 50,347 1,330,453
HOTELS & OTHER LODGING PLACES (0.22%)
Indian Hotels Company Limited
144A (a) (c) ........................... 19,961 474,074
Sol Melia, SA (a) ........................ 28,044 1,151,450
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (2.40%)
Pfeiffer Vacuum Technology AG -
Sponsored ADR (a) ..................... 11,600 $ 337,850
Siebe Plc ................................. 702,974 11,907,069
Stet Societa' Finanziaria Telefonica
S.p.A. (b) ........................... 657,876 3,884,042
Tarkett AG .............................. 52,741 1,330,164
INSTRUMENTS & RELATED PRODUCTS (0.26%)
Grand Optical Photoservice ............... 12,453 1,889,225
INSURANCE (0.99%)
Zurich Versicherungsgesellschaft ......... 18,011 7,163,956
MACHINERY, EQUIPMENT & SUPPLIES (0.06%)
Azkoyen SA .............................. 3,000 372,582
Azkoyen SA - Rights ..................... 3,000 92,415
MANUFACTURING INDUSTRIES (3.62%)
Amer Group Ltd. (a) (b) .................. 119,951 2,195,043
Assa Abloy AB - Class B Free ............ 558,863 11,413,328
Barco Industries N.V. ..................... 16,097 3,260,367
Johnson Matthey Plc ..................... 36,604 352,677
Powerscreen International Plc ............ 57,778 629,821
Sulzer AG ................................. 5,743 4,914,596
TI Group Plc .............................. 371,593 3,239,879
Tomra Systems ASA ........................ 14,714 301,105
MEDICAL INSTRUMENTS & SUPPLIES (1.28%)
Boston Scientific Corporation (a) ......... 10,350 635,878
Fresenius Medical Care AG -
ADR (a) (b) ........................... 298,225 8,685,803
OIL & GAS EXTRACTION (1.35%)
Lukoil Oil Co. - Sponsored
ADR (a) (b) ........................... 28,200 2,225,420
Tatneft - Sponsored ADR
144A (a) (b) (c) ..................... 29,775 3,185,925
YPF Sociedad Anonima S.A. -
Sponsored ADR ........................ 143,950 4,426,463
PERSONAL CREDIT INSTITUTIONS (0.26%)
Associates First Capital
Corporation - Class A .................. 34,425 1,910,588
PERSONAL SERVICES (2.05%)
Hays plc ................................. 1,371,052 13,038,711
Kuoni Reisen AG - Class B ............... 87 297,802
Ranstad Holdings N. V. .................. 15,087 1,590,127
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
30
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PETROLEUM REFINING (1.41%)
Elf Aquitaine SA (b) ..................... 95,113 $ 10,255,905
PHARMACEUTICALS (10.12%)
Ares-Serono Group - Class B ............... 992 1,436,352
Astra AB - Class A ..................... 131,886 2,454,771
Eisai Co. Ltd. (b) ........................ 261,500 4,954,208
Gehe AG ................................. 60,918 4,155,246
Glaxo Wellcome Plc ........................ 207,361 4,282,461
Grupo Casa Autrey S.A. de C.V. -
Sponsored ADR ........................ 153,475 3,117,461
Novartis AG .............................. 5,681 9,077,466
Pfizer, Inc. .............................. 12,625 1,508,688
Rhone-Poulenc - Class A (b) ............... 246,876 10,077,086
Rhone-Poulenc Rorer, Inc. ............... 33,975 3,087,478
Richter Gedeon Rt. - GDR - 144A (c) . 23,550 2,169,963
Roche Holding AG ........................ 1,431 12,936,506
Smithkline Beecham Plc .................. 315,122 5,802,059
SmithKline Beecham Plc - ADR ............ 32,675 2,993,847
Takeda Chemical Industries ............... 196,000 5,510,040
PRINTING & PUBLISHING (1.31%)
Pearson Plc .............................. 88,609 1,026,407
Wolters Kluwer NV ........................ 69,559 8,464,664
RADIO & TELEVISION BROADCASTING (1.37%)
CanWest Global Communications
Corporation ........................... 114,150 1,690,847
Central European Media Enterprises
Ltd. (a) .............................. 91,165 2,370,290
Grupo Televisa S.A. - Sponsored
GDR (a) (b) ........................... 194,350 5,903,381
REAL ESTATE (1.50%)
Mitsubishi Estate Company, Limited ...... 500,000 7,246,377
Mitsui Fudosan Co., Ltd. .................. 266,000 3,669,286
RESEARCH & TESTING SERVICES (0.71%)
WM-Data AB - Class B (b) .................. 291,885 5,130,983
RESTAURANTS (0.82%)
Compass Group Plc (c) ..................... 380,256 4,265,386
Tele Pizza, S.A. (a) ..................... 28,553 1,681,982
RETAIL TRADE (0.22%)
Pirelli S.p.A. ........................... 503,018 1,265,965
TAG Heuer International SA (a) ............ 2,268 340,037
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
RUBBER & MISC. PLASTIC PRODUCTS (1.52%)
Adidas AG ................................. 44,896 $ 4,966,713
Michelin - Class B (b) .................. 101,275 6,078,533
SECURITY & COMMODITY BROKERS (0.25%)
Grupo Financiero Inbursa, S.A. de
C.V. - Class B ........................ 430,741 1,789,783
TELECOMMUNICATIONS (7.60%)
Hellenic Telecommunication
Organization S.A. 144A (c) ............ 43,407 1,019,129
Iridium World Communications
Ltd. (a) (b) ........................... 76,325 1,383,391
Millicom International Cellular
S.A. (a) .............................. 32,825 1,567,394
Nippon Telegraph & Telephone ............ 1,300 12,486,834
Nortel Inversora S.A. - ADR (a) (b) ...... 121,025 3,313,059
Oy Nokia AB - Class A ..................... 18,781 1,418,144
Oy Nokia AB - Class A - ADR ............... 75,300 5,553,375
Portugal Telecom SA - Sponsored
ADR .................................... 64,700 2,596,088
Tandberg Television ASA (a) ............... 9,560 71,080
Telecom Argentina Stet - France
Telecom S.A. - Sponsored
ADR (a) (b) ........................... 6,525 342,563
Telecom Italia Mobile SpA ............... 628,166 2,017,023
Telecom Italia S.p.A. ..................... 907,371 2,907,147
Telecomunicacoes Brasileiras S/A -
Telebras - Sponsored ADR ............... 48,325 7,333,319
Telefonaktiebolaget LM Ericsson -
Class B .............................. 45,231 1,780,219
Telefonaktiebolaget LM Ericsson -
Sponsored ADR ........................ 135,400 5,331,375
Telefonica de Argentina S.A. -
Sponsored ADR (b) ..................... 67,300 2,330,263
Telefonica del Peru S.A. - Sponsored
ADR (a) .............................. 143,525 3,758,561
TEXTILE MILL PRODUCTS (0.60%)
Wolford AG (b) ........................... 45,286 4,396,161
TOBACCO PRODUCTS (0.17%)
PT Hanjaya Mandala Sampoerna ............ 316,500 1,207,543
TRANSPORTATION & PUBLIC UTILITIES (0.99%)
Koninklijke Nedlloyd Groep NV ............ 34,809 1,004,924
Stagecoach Holdings Plc .................. 586,932 6,187,798
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
31
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
------------- -----------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE DURABLE GOODS (0.43%)
Alcatel Alsthom (b) ......... 25,207 $ 3,155,323
-------------
Total Common Stocks
(cost: $ 573,478,466) ..................... 712,473,451
-------------
Total Investment Securities
(cost: $ 585,073,285) ..................... $ 729,271,541
=============
SUMMARY
Investments at market value 100.34% $ 729,271,541
Other Liabilities in
Excess of Assets ......... (0.34%) (2,495,787)
---------- -------------
Net Assets .................. 100.00% $ 726,775,754
========== =============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET VALUE PERCENTAGE
--------------- -----------
<S> <C> <C>
Austria ............ $ 4,396,161 0.60%
Belgium ............ 5,226,586 0.72%
Brazil ............... 11,115,401 1.53%
Denmark ............ 12,430,138 1.71%
Finland ............ 8,284,879 1.14%
France ............... 62,405,292 8.59%
Germany ............ 63,410,616 8.72%
Greece ............... 1,019,129 0.14%
Hong Kong ............ 6,939,924 0.95%
Indonesia ............ 1,207,543 0.17%
Italy ............... 14,960,485 2.06%
Japan ............... 79,506,653 10.94%
Mexico ............... 5,246,915 0.72%
Netherlands ......... 50,920,641 7.01%
Norway ............... 1,696,530 0.23%
Philippines ......... 594,184 0.08%
Poland ............... 1,511,852 0.21%
Portugal ............ 1,288,114 0.18%
Spain ............... 8,907,519 1.23%
Sweden ............... 67,738,885 9.32%
Switzerland ......... 44,193,662 6.08%
United Kingdom ...... 109,559,744 15.07%
United States ...... 164,214,901 22.60%
-------------- -------
Net Assets ......... $ 726,775,754 100.00%
============== =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(d) Industry percentage is less than .01%.
ADR American Depositary Receipt
GDR Global Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
32
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (6.54%)
U.S. Treasury Notes
6.13%, due 05/15/98 .................. $ 1,000,000 $ 1,003,110
U.S. Treasury Notes
6.13%, due 08/31/98 .................. 9,000,000 9,023,400
U.S. Treasury Notes
6.13%, due 09/30/00 .................. 5,000,000 4,976,900
U.S. Treasury Notes
7.50%, due 11/15/01 .................. 5,000,000 5,208,750
U.S. Treasury Notes
7.50%, due 02/15/05 .................. 4,500,000 4,758,165
U.S. Treasury Notes
6.00%, due 10/15/99 .................. 6,000,000 5,989,200
------------
Total U.S. Government Obligations
(cost: $ 30,822,569).................................... 30,959,525
------------
CORPORATE DEBT SECURITIES (14.73%)
BUSINESS SERVICES (0.96%)
Olsten Corporation
7.00%, due 03/15/06 .................. 4,625,000 4,555,625
CHEMICALS & ALLIED PRODUCTS (0.61%)
Dexter Corporation
9.25%, due 12/15/16 .................. 1,425,000 1,494,234
M.A. Hanna Company
9.38%, due 09/15/03 .................. 1,250,000 1,390,625
COMMERCIAL BANKS (1.11%)
First Union Corporation
7.25%, due 02/15/03 .................. 2,600,000 2,635,750
J.P. Morgan & Co.
7.63%, due 09/15/04 .................. 2,510,000 2,604,125
COMMUNICATIONS EQUIPMENT (1.62%)
GTE Corporation
10.75%, due 09/15/17 .................. 1,000,000 1,057,500
Lucent Technologies, Inc.
6.90%, due 07/15/01 .................. 6,575,000 6,607,875
ELECTRIC SERVICES (3.70%)
Interstate Power Company
8.63%, due 09/15/21 .................. 3,825,000 4,097,531
KU Energy Corporation
8.55%, due 05/15/27 .................. 4,000,000 4,215,000
Potomac Electric Power Company
5.00%, due 09/01/02 .................. 4,250,000 3,904,688
West Penn Power Company
8.88%, due 02/01/21 .................. 5,000,000 5,268,750
ELECTRICAL GOODS (0.46%)
Avnet, Inc.
6.88%, due 03/15/04 .................. 2,199,000 2,196,251
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
CORPORATE DEBT SECURITIES (CONTINUED)
GAS PRODUCTION & DISTRIBUTION (1.29%)
Oneok, Inc.
9.75%, due 12/01/20 .................. $ 1,000,000 $ 1,117,500
Transcontinental Gas Power &
Light Company
9.13%, due 02/01/17 .................. 4,800,000 5,010,000
LIFE INSURANCE (0.74%)
Torchmark Corporation
8.63%, due 03/01/17 .................. 3,350,000 3,504,938
RAILROADS (1.84%)
Union Pacific Corporation
8.50%, due 01/15/17 .................. 5,500,000 5,713,125
Union Pacific Corporation
6.25%, due 03/15/99 .................. 3,000,000 2,988,750
TELECOMMUNICATIONS (1.17%)
Alltel Corporation
7.25%, due 04/01/04 .................. 5,465,000 5,553,805
TOBACCO PRODUCTS (1.23%)
RJR Nabisco Holdings Corporation
8.30%, due 04/15/99 .................. 5,650,000 5,833,625
------------
Total Corporate Debt Securities
(cost: $ 70,023,643) ..................... 69,749,697
------------
CONVERTIBLE BONDS (4.76%)
ENVIRONMENTAL SERVICES (0.79%)
USA Waste Services, Inc.
4.00%, due 02/01/02 .................. 3,500,000 3,762,500
INDUSTRIAL MACHINERY & EQUIPMENT (0.78%)
Robbins & Meyers, Inc.
6.50%, due 09/01/03 .................. 2,800,000 3,678,500
LUMBER & OTHER BUILDING MATERIALS (1.45%)
Home Depot Inc.
3.25%, due 10/01/01 .................. 6,000,000 6,855,000
OIL & GAS EXTRACTION (1.74%)
Nabors Industries, Inc.
5.00%, due 05/15/06 .................. 5,450,000 8,215,875
------------
Total Convertible Bonds
(cost: $ 18,533,565) ..................... 22,511,875
------------
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
33
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (6.13%)
COMPUTER & DATA PROCESSING SERVICE (1.75%)
Microsoft Corporation (a) .................. 95,000 $ 8,265,000
ELECTRIC SERVICES (1.71%)
Calenergy Co., Inc. -
Capital Trust (a)(c) ..................... 110,300 8,093,263
LIFE INSURANCE (1.49%)
SunAmerica, Inc. - Series E ............... 65,000 7,044,375
PRIMARY METAL INDUSTRIES (1.18%)
TIMET Capital Trust (c) ..................... 103,500 5,589,000
------------
Total Convertible Preferred Stocks
(cost: $ 24,730,441).................................... 28,991,638
------------
COMMON STOCKS (67.07%)
AUTOMOTIVE (0.43%)
Autoliv, Inc. (a) ........................... 51,661 2,021,237
BUSINESS SERVICES (2.54%)
AccuStaff, Inc. (a)(b) ..................... 197,500 4,678,281
Manpower, Inc. .............................. 165,500 7,364,750
CHEMICALS & ALLIED PRODUCTS (8.80%)
Colgate-Palmolive Company .................. 121,400 7,921,350
Estee Lauder Companies -
Class A ................................. 130,000 6,532,500
E.I. du Pont de Nemours &
Company ................................. 92,000 5,784,500
Gillette Company ........................... 58,280 5,522,030
Lawter International, Inc. .................. 337,500 4,260,938
Morton International, Inc. (a) ............ 151,500 4,573,406
Procter & Gamble Company .................. 50,000 7,062,500
COMMERCIAL BANKS (2.06%)
Compass Bancshares Inc. ..................... 75,500 2,538,688
Mellon Bank Corporation ..................... 160,000 7,220,000
COMPUTER & OFFICE EQUIPMENT (1.59%)
Hewlett-Packard Company ..................... 134,000 7,504,000
DEPARTMENT STORES (1.08%)
Sears, Roebuck and Co. ..................... 95,000 5,106,250
ELECTRICAL GOODS (1.05%)
Westinghouse Electric
Corporation (b) ........................ 215,000 4,971,875
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.67%)
Emerson Electric Company .................. 100,000 $ 5,506,250
General Electric Company .................. 96,000 6,276,000
National Service Industries, Inc. ......... 114,800 5,589,325
ENVIRONMENTAL SERVICES (1.08%)
Waste Management Inc. ..................... 159,100 5,111,088
FABRICATED METAL PRODUCTS (0.45%)
Masco Corporation ........................... 51,500 2,150,125
FINANCE (1.37%)
Fannie Mae ................................. 149,000 6,500,125
FOOD & KINDRED PRODUCTS (2.13%)
H.J. Heinz Company ........................ 50,000 2,306,250
Nabisco Holdings Corporation -
Class A (b) .............................. 195,300 7,787,588
HEALTH SERVICES (0.86%)
Columbia/HCA Healthcare
Corporation .............................. 104,100 4,092,430
HOLDING & OTHER INVESTMENT OFFICES (4.36%)
Crescent Real Estate
Equities, Inc. ........................... 321,500 10,207,625
Starwood Lodging Trust ..................... 243,900 10,411,480
INDUSTRIAL MACHINERY & EQUIPMENT (1.31%)
Baker Hughes, Inc. ........................ 160,000 6,190,000
INSTRUMENTS & RELATED PRODUCTS (2.08%)
Eastman Kodak Company ..................... 47,900 3,676,325
Fisher Scientific International ............ 129,500 6,151,250
INSURANCE (1.13%)
PartnerRe Ltd. .............................. 140,000 5,337,500
INSURANCE AGENTS, BROKERS & SERVICE (0.54%)
Marsh & McLennan
Companies, Inc. ........................ 36,000 2,569,500
LIFE INSURANCE (2.81%)
American General Corporation (b) . 106,900 5,104,475
American International
Group, Inc. .............................. 43,000 6,423,125
Hartford Life, Inc. - Class A (a)(b) . 30,000 1,125,000
Nationwide Financial Services,
Inc. - Class A ........................... 25,000 664,063
MANUFACTURING INDUSTRIES (1.62%)
Tyco International Ltd. (b) ............... 110,000 7,651,875
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
34
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS & SUPPLIES (2.66%)
Baxter International, Inc. ............ 122,200 $ 6,384,950
Covance, Inc. (a) ..................... 320,500 6,189,656
MOTION PICTURES (0.77%)
Walt Disney Company .................. 45,400 3,643,350
OIL & GAS EXTRACTION (0.87%)
Union Pacific Resources
Group, Inc. ........................ 165,000 4,104,375
PAPER & ALLIED PRODUCTS (0.87%)
Kimberly-Clark Corporation ............ 82,900 4,124,275
PAPERBOARD CONTAINERS AND BOXES (0.06%)
Longview Fibre Company ............... 18,000 299,250
PETROLEUM REFINING (4.92%)
Amoco Corporation ..................... 75,700 6,581,169
Exxon Corporation ..................... 114,800 7,060,200
Mobil Corporation ..................... 137,800 9,628,775
PHARMACEUTICALS (4.14%)
Merck & Co., Inc. ..................... 70,500 7,296,750
Schering-Plough Corporation (b) ...... 104,000 4,979,000
SmithKline Beecham Plc - ADR ......... 80,000 7,330,000
PRINTING & PUBLISHING (1.41%)
A.H. Belo Corporation - Class A ...... 160,400 6,676,650
REAL ESTATE (0.80%)
Boykin Lodging Company ............... 144,000 3,447,000
Crescent Operating, Inc. (a) ......... 32,150 385,800
RESTAURANTS (1.27%)
PepsiCo, Inc. ........................ 160,000 6,010,000
SAVINGS INSTITUTIONS (1.37%)
First Colorado Bancorp, Inc. (b) ...... 339,500 6,492,938
STONE, CLAY, & GLASS PRODUCTS (2.00%)
Corning Inc. (b) ..................... 170,000 9,456,250
TELECOMMUNICATIONS (0.83%)
Alltel Corporation .................. 117,900 3,942,281
NUMBER OF MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS (CONTINUED)
TOBACCO PRODUCTS (1.12%)
Philip Morris Companies, Inc. ......... 120,000 $ 5,325,000
WHOLESALE TRADE DURABLE GOODS (3.02%)
Danka Business Systems Plc -
Sponsored ADR (b)(c) ............... 209,800 8,575,575
Johnson & Johnson ..................... 88,400 5,690,750
-------------
Total Common Stocks
(cost: $ 231,673,065).................. 317,517,698
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------------- --------------
<S> <C> <C>
SHORT-TERM OBLIGATION (0.55%)
Investors Bank & Trust
Company (d)
5.51%, Repurchase
Agreement dated 6/30/97
to be repurchased at
$ 2,620,955 on 7/1/97 ...... $ 2,620,554 $ 2,620,554
--------------
Total Short-Term Obligation
(cost: $ 2,620,554)........................... 2,620,554
--------------
Total Investment Securities
(cost: $ 378,403,837) ........................ $ 472,350,987
==============
SUMMARY
Investments at market value 99.78% $ 472,350,987
Other Assets in
Excess of Liabilities ... 0.22% 1,046,001
------------ --------------
Net Assets .................. 100.00% $ 473,396,988
============ ==============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(d) Collateralized by $ 2,575,179 of Government National Mortgage Association
9.00% due 11/15/21; market value and accrued interest aggregated
$ 2,752,197 for this collateral at June 30, 1997.
(e) Prior to May 1, 1997, this portfolio was named Equity Income.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
35
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (C)
TELECOMMUNICATIONS (C)
AirTouch Communications,
Inc. - Series B ........................... 1 $ 29
AirTouch Communications,
Inc. - Series C ........................... 1 48
-----------
Total Convertible Preferred Stocks
(cost: $ 78)............................................. 77
-----------
COMMON STOCKS (91.78%)
AEROSPACE (0.41%)
Gulfstream Aerospace
Corporation (a) ........................ 25,000 737,500
Sundstrand Corporation ..................... 24,000 1,296,000
AIR TRANSPORTATION (1.36%)
Airborne Freight Corporation ............... 37,000 1,549,375
Continental Airlines, Inc. -
Class A (a) .............................. 20,000 700,000
Continental Airlines, Inc. -
Class B (a) (b) ........................... 55,000 1,921,563
US Airways Group Inc. (a) (b) ............... 75,000 2,625,000
APPAREL PRODUCTS (2.24%)
Gucci Group nv - NY registered
share (b) ................................. 40,000 2,575,000
Jones Apparel Group, Inc. (a) ............... 58,000 2,769,500
Liz Claiborne, Inc. ........................ 40,000 1,865,000
Nautica Enterprises, Inc. (a) ............... 40,000 1,057,500
Polo Ralph Lauren Corporation (a) ............ 28,400 777,450
Tommy Hilfiger Corporation (a) (b) ......... 20,000 803,750
WestPoint Stevens, Inc. (a) .................. 33,000 1,291,125
APPAREL & ACCESSORY STORES (1.82%)
Pacific Sunwear of
California (a) (b) ..................... 45,000 1,451,250
Ross Stores, Inc. ........................... 125,000 4,085,937
St. John Knits, Inc. ........................ 44,000 2,376,000
Wet Seal, Inc. - Class A (a) ............... 36,000 1,136,250
AUTOMOTIVE (0.17%)
SPX Corporation .............................. 13,000 842,562
BUSINESS CREDIT INSTITUTIONS (0.77%)
Finova Group, Inc. ........................... 50,000 3,825,000
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (2.07%)
AccuStaff, Inc. (a) (b) ..................... 32,750 $ 775,766
Caribiner International, Inc. (a) ............ 40,000 1,305,000
Engineering Animation, Inc. (a) ............ 8,000 270,000
Interpublic Group of
Companies, Inc. ........................... 42,000 2,575,125
Omnicom Group, Inc. ........................ 40,000 2,465,000
Robert Half International, Inc. (a) ......... 40,000 1,882,500
Sitel Corporation (a) (b) .................. 50,000 1,031,250
CHEMICALS & ALLIED PRODUCTS (0.68%)
Cytec Industries, Inc. (a) .................. 17,500 654,063
Praxair, Inc. .............................. 49,000 2,744,000
COMMERCIAL BANKS (1.65%)
Cullen/Frost Bankers, Inc. .................. 25,000 1,059,375
National Commerce Bancorporation ............ 16,000 352,000
North Fork Bancorporation, Inc. ............ 44,000 940,500
Peoples Heritage Financial
Group, Inc. .............................. 30,000 1,136,250
Silicon Valley Bancshares (a) ............... 10,000 452,500
Star Banc Corporation ........................ 35,000 1,478,750
State Street Corporation ..................... 60,000 2,775,000
COMMUNICATIONS EQUIPMENT (2.44%)
ADC Telecommunications (a) .................. 62,000 2,069,250
Advanced Fibre
Communications (a) (b) .................. 23,000 1,388,625
CIENA Corporation (a) (b) .................. 42,000 1,979,250
Tellabs, Inc. (a) ........................... 120,000 6,705,000
COMPUTER & DATA PROCESSING SERVICES (18.39%)
Aspen Technologies, Inc. (a) ............... 54,800 2,061,850
Baan Company nv (a) (b) ..................... 45,000 3,099,375
BMC Software, Inc. (a) (b) .................. 120,000 6,645,000
Cambridge Technology
Partners, Inc. (a) ........................ 50,000 1,600,000
Ciber, Inc. (a) .............................. 34,000 1,162,375
Citrix Systems, Inc. (a) ..................... 34,000 1,491,750
Comdisco, Inc. .............................. 48,000 1,248,000
Computer Horizons Corporation (a) ............ 36,500 1,250,125
Compuware Corporation (a) .................. 184,000 8,786,000
Discreet Logic, Inc. (a) ..................... 31,900 526,350
HBO & Company .............................. 107,000 7,369,625
HNC Software, Inc. (a) (b) .................. 35,000 1,334,375
Keane, Inc. (a) .............................. 23,000 1,196,000
McAfee Associates, Inc. (a) (b) ............ 135,000 8,521,875
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
36
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
Memco Software Ltd. (a) (b) ............... 7,500 $ 136,875
Microsoft Corporation (a) .................. 143,000 18,071,625
National Data Corporation (b) ............... 40,000 1,732,500
National Techteam, Inc. (a) ............... 20,000 427,500
PeopleSoft (a) (b) ........................ 150,000 7,912,500
Saville Systems Ireland Plc -
Sponsored ADR (a) (b) .................. 22,000 1,144,000
Siebel Systems, Inc. (a) .................. 20,000 645,000
Stratus Computer, Inc. (a) .................. 34,000 1,700,000
Sun Microsystems, Inc. (a) .................. 40,000 1,488,747
SunGard Data Systems Inc. (a) ............... 55,000 2,557,500
Technology Solutions Company (a) ............ 15,000 592,500
Teradyne, Inc. (a) ........................ 88,000 3,454,000
Viasoft, Inc. (a) (b) ..................... 70,000 3,552,500
Visio Corporation (a) ..................... 5,000 352,500
Wind River Systems (a) ..................... 39,000 1,491,750
COMPUTER & OFFICE EQUIPMENT (5.73%)
Comverse Technology, Inc. (a) ............... 55,000 2,860,000
Dell Computer Corporation (a) (b) ......... 195,000 22,900,312
Jabil Circuit, Inc. (a) ..................... 33,000 2,767,875
CONSTRUCTION (0.22%)
Dynatech Corporation (a) .................. 30,000 1,072,500
DEPARTMENT STORES (1.55%)
Fred Meyer, Inc. (a) ........................ 34,000 1,757,375
Proffitt's, Inc. (a) ........................ 27,000 1,184,625
Stein Mart, Inc. (a) ........................ 39,000 1,170,000
TJX Companies, Inc. ........................ 136,000 3,587,000
DRUG STORES & PROPRIETARY STORES (0.43%)
CVS Corporation ........................... 42,000 2,152,500
EDUCATIONAL SERVICES (0.27%)
Apollo Group, Inc. - Class A (a) (b) ...... 37,500 1,321,875
ELECTRIC SERVICES (0.54%)
AES Corporation (a) ........................ 38,000 2,688,500
ELECTRICAL GOODS (0.41%)
CellStar Corporation (a) (b) ............... 67,500 2,067,188
ELECTRONIC COMPONENTS & ACCESSORIES (4.20%)
Altera Corporation (a) ..................... 140,000 7,070,000
ASM Lithography Holding (a) ............... 27,000 1,579,500
BMC Industries, Inc. ........................ 30,000 1,027,500
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
Dallas Semiconductor Corporation ............ 46,500 $ 1,825,125
Micrel, Inc. (a) ........................... 15,000 765,000
Micro Linear Corporation (a) ............... 24,000 252,000
Sanmina Corporation (a) (b) ............... 42,000 2,667,000
Texas Instruments, Inc. ..................... 33,000 2,774,062
Vitesse Semiconductor
Corporation (a) ........................ 90,000 2,941,875
ENVIRONMENTAL SERVICES (1.86%)
Allied Waste Industries, Inc.(a) ............ 34,000 590,750
Newpark Resources, Inc. (a) ............... 40,000 1,350,000
United Waste Systems, Inc. (a) ............ 80,000 3,280,000
U.S.A. Waste Services, Inc. (a) (b) ......... 105,000 4,055,625
FABRICATED METAL PRODUCTS (0.86%)
Danaher Corporation ........................ 40,000 2,032,500
Tower Automotive, Inc. (a) .................. 25,000 1,075,000
Wyman-Gordon Company (a) (b) ............... 43,000 1,161,000
FOOD STORES (0.29%)
General Nutrition Companies,
Inc. (a) ................................. 51,000 1,428,000
FOOD & KINDRED PRODUCTS (1.39%)
Interstate Bakeries Corporation ............ 45,000 2,669,063
Morningstar Group, Inc. (a) ............... 27,000 793,125
Smithfield Foods, Inc. (a) .................. 56,000 3,444,000
FURNITURE & FIXTURES (1.00%)
Ethan Allen Interiors, Inc. ............... 33,000 1,881,000
Furniture Brands International,
Inc. (a) ................................. 20,000 387,500
Herman Miller, Inc. ........................ 75,000 2,700,000
FURNITURE & HOME FURNISHINGS STORES (0.91%)
Linens 'N Things, Inc. (a) .................. 20,000 592,500
Pier 1 Imports, Inc. ........................ 60,000 1,590,000
Williams-Sonoma, Inc. (a) .................. 55,000 2,351,250
GAS PRODUCTION & DISTRIBUTION (0.79%)
Cooper Cameron Corporation (a) ............ 84,000 3,927,000
HEALTH SERVICES (2.15%)
Health Management
Associates, Inc. (a) ..................... 80,625 2,297,813
HEALTHSOUTH
Corporation (a) (b) ..................... 205,000 5,112,187
Renal Treatment Centers, Inc. (a) ......... 35,000 940,625
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
37
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH SERVICES (CONTINUED)
Total Renal Care Holdings, Inc. (a) ... 25,500 $ 1,024,781
Universal Health Services,
Inc. - Class B (a) .................. 34,000 1,309,000
HOTELS & OTHER LODGING PLACES (1.31%)
CapStar Hotel Company (a) ............ 30,000 960,000
Doubletree Corporation (a) ............ 40,000 1,645,000
HFS, Inc. (a) (b) ..................... 33,000 1,914,000
Prime Hospitality Corp. (a) ............ 33,000 651,750
Promus Hotel Corporation (a) ......... 35,000 1,356,250
INDUSTRIAL MACHINERY & EQUIPMENT (2.81%)
Applied Materials, Inc. (a) ............ 100,000 7,081,250
JLK Direct Distribution Inc. (a) ...... 5,000 128,125
Kulicke & Soffa Industries,
Inc. (a) ........................... 28,000 909,124
Smith International, Inc. (a) (b) ...... 71,000 4,313,250
U.S. Filter Corporation (a) (b) ...... 40,000 1,090,000
Varco International, Inc. (a) ......... 15,000 483,750
INSTRUMENTS & RELATED PRODUCTS (0.94%)
Cymer, Inc. (a) (b) .................. 34,000 1,657,500
KLA-Tencor Corporation (a) ............ 30,000 1,462,500
Uniphase Corporation (a) ............... 27,000 1,572,750
INSURANCE (4.76%)
American Bankers Insurance
Group, Inc. ........................ 20,000 1,265,000
CMAC Investment Corporation ............ 60,000 2,865,000
Conseco Inc. ........................... 215,000 7,955,000
Everest Reinsurance
Holdings, Inc. ..................... 25,000 990,625
FPA Medical Management,
Inc. (a) (b) ........................ 35,000 829,062
Mercury General Corporation ............ 3,500 254,625
MGIC Investment Corporation ............ 24,000 1,150,500
Oxford Health Plans, Inc. (a) (b) ...... 74,000 5,309,500
The Hartford Financial Services
Group Inc. ........................ 27,500 2,275,625
Transatlantic Holdings, Inc. ......... 5,000 496,250
Vesta Insurance Group, Inc. ............ 7,000 302,750
IRON & STEEL FOUNDRIES (0.41%)
Precision Castparts Corporation ...... 34,000 2,027,250
LEATHER & LEATHER PRODUCTS (0.62%)
Wolverine World Wide, Inc. ............ 101,250 3,075,469
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (0.63%)
Penncorp Financial Group, Inc. (b) ... 24,100 $ 927,850
SunAmerica, Inc. ..................... 45,000 2,193,750
LUMBER & OTHER BUILDING MATERIALS (0.16%)
Eagle Hardware & Garden,
Inc. (a) (b) ........................ 35,000 800,625
MANAGEMENT SERVICES (1.15%)
Corrections Corporation of
America (a) (b) ..................... 83,000 3,299,250
Paychex, Inc. ........................ 57,000 2,166,000
Whittman-Hart, Inc. (a) ............... 8,800 247,500
MANUFACTURING INDUSTRIES (0.99%)
Tiffany & Co. ........................ 45,000 2,078,438
Tyco International Ltd. (b) ............ 41,000 2,852,062
MEDICAL INSTRUMENTS & SUPPLIES (1.35%)
ESC Medical Systems Limited (a) ...... 15,000 382,500
Guidant Corporation .................. 65,000 5,525,000
MiniMed, Inc. (a) ..................... 30,000 798,750
MISC. GENERAL MERCHANDISE STORES (0.59%)
Consolidated Stores
Corporation (a) ..................... 85,000 2,953,750
MOTION PICTURES (0.43%)
Regal Cinemas, Inc. (a) (b) ............ 65,000 2,145,000
OIL & GAS EXTRACTION (4.96%)
BJ Services Company -
Warrants (b) ........................ 14,000 409,500
BJ Services Company (a) ............... 35,000 1,876,875
Cliffs Drilling Company (a) ............ 40,000 1,460,000
Diamond Offshore Drilling,
Inc. (a) ........................... 58,000 4,531,250
ENSCO International,
Incorporated (a) .................. 60,000 3,165,000
Falcon Drilling Company, Inc. (a) ...... 58,000 3,342,250
Forcenergy, Inc. (a) (b) ............... 38,000 1,154,250
Global Marine, Inc. (a) ............... 140,000 3,255,000
Marine Drilling Companies, Inc. (a) ... 97,000 1,903,625
Ocean Energy, Inc. (a) ............... 32,500 1,503,125
Rowan Companies, Inc. (a) ............ 30,000 845,625
Santa Fe International
Corporation (a) (b) ............... 36,000 1,224,000
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
38
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PAPER & ALLIED PRODUCTS (0.20%)
Sealed Air Corporation (a) ............... 21,000 $ 997,500
PETROLEUM & PETROLEUM PRODUCTS (0.22%)
National-Oilwell, Inc. (a) (b) ......... 19,000 1,092,500
PHARMACEUTICALS (2.63%)
Dura Pharmaceuticals, Inc. (a) ......... 113,000 4,505,875
Jones Medical Industries, Inc. ......... 54,000 2,565,000
Medicis Pharmaceutical Corporation -
Class A (a) (b) ..................... 52,500 2,618,438
Parexel International Corporation (a) . 30,000 952,500
Rexall Sundown, Inc. (a) (b) ............ 35,000 1,365,000
Teva Pharmaceutical Industries Ltd. -
Sponsored ADR ........................ 17,000 1,100,750
PRIMARY METAL INDUSTRIES (0.36%)
Maverick Tube Corporation (a) ............ 25,000 937,500
Mueller Industries, Inc. (a) ............ 20,000 875,000
PRINTING & PUBLISHING (0.95%)
Consolidated Graphics, Inc. (a) ......... 40,000 1,670,000
Meredith Corporation ..................... 90,000 2,610,000
Valassis Communications, Inc. (a) ...... 19,000 456,000
RADIO & TELEVISION BROADCASTING (1.28%)
Clear Channel Communications,
Inc. (a) .............................. 32,000 1,968,000
Evergreen Media Corporation -
Class A (a) (b) ..................... 69,000 3,079,125
Jacor Communications, Inc. (a) (b) ...... 27,000 1,032,750
Univision Communications, Inc. (a) ...... 7,400 289,525
RADIO, TELEVISION, & COMPUTER STORES (0.30%)
CompUSA, Inc. (a) (b) .................. 40,000 860,000
Inacom Corporation (a) (b) ............... 20,000 622,500
RESEARCH & TESTING SERVICES (0.56%)
Curative Health Services, Inc. (a) ...... 25,000 718,750
Quintiles Transnational
Corporation (a) ..................... 30,000 2,088,750
RESTAURANTS (0.11%)
Foodmaker, Inc. (a) ..................... 34,000 556,750
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
RETAIL TRADE (2.36%)
Action Performance Companies,
Inc. (a) (b) ........................ 30,000 $ 727,500
Barnes & Noble, Inc. (a) ............... 38,000 1,634,000
Bed Bath & Beyond, Inc. (a) (b) ......... 60,000 1,822,500
Borders Group, Inc. (a) .................. 90,000 2,171,250
Costco Companies, Inc. (a) ............... 164,000 5,391,500
RUBBER & MISC. PLASTIC PRODUCTS (0.42%)
EVI, Inc. (a) ........................... 50,000 2,100,000
SAVINGS INSTITUTIONS (2.57%)
Astoria Financial Corporation ............ 30,000 1,425,000
Coast Savings Financial (a) ............ 20,000 908,750
Glendale Federal Bank FSB (a) ............ 35,000 914,375
GreenPoint Financial Corporation ......... 30,000 1,996,875
Sovereign Bancorp, Inc. (b) ............ 50,000 762,500
St. Paul Bancorp, Inc. .................. 35,000 1,159,375
Washington Mutual, Inc. (b) ............ 94,000 5,616,500
TELECOMMUNICATIONS (1.42%)
Brightpoint, Inc. (a) .................. 42,000 1,367,625
Cincinnati Bell, Inc. .................. 120,000 3,780,000
MasTec, Inc. (a) (b) ..................... 30,000 1,419,375
U.S. Long Distance Corporation (a) ...... 29,000 500,250
TOBACCO PRODUCTS (0.13%)
Consolidated Cigar Holdings
Inc. (a) (b) ........................ 24,000 666,000
TRANSPORTATION EQUIPMENT (0.17%)
Halter Marine Group, Inc. (a) ............ 35,000 840,000
VARIETY STORES (0.65%)
Dollar General Corporation ............... 50,000 1,875,000
Family Dollar Stores, Inc. ............... 50,000 1,362,500
WATER TRANSPORTATION (0.44%)
Tidewater, Inc. (b) ..................... 50,000 2,200,000
WHOLESALE TRADE DURABLE GOODS (1.30%)
Ingram Micro, Inc. (a) .................. 35,000 844,375
Omnicare, Inc. ........................... 120,000 3,765,000
Safeway, Inc. (a) ........................ 40,000 1,845,000
-------------
Total Common Stocks
(cost: $ 325,344,727)..................... 456,822,037
-------------
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
39
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------------- --------------
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (7.93%)
Federal Home Loan Bank
6.00%, due 07/01/97 ........................ $ 39,460,000 $ 39,460,000
--------------
Total Short-Term
U.S. Government Obligation
(cost: $ 39,460,000) .......................................... 39,460,000
--------------
Total Investment Securities
(cost: $ 364,804,805) .......................................... $ 496,282,114
==============
SUMMARY
Investments at market value .................. 99.71% $ 496,282,114
Other Assets in
Excess of Liabilities ........................ 0.29% 1,468,252
------------- --------------
Net Assets .................................... 100.00% $ 497,750,366
============= ==============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Percentage is less than .01%.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
40
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (96.08%)
AEROSPACE (3.90%)
AlliedSignal Inc. ........................... 33,200 $ 2,788,800
Boeing Company (b) ........................... 101,300 5,375,231
Gulfstream Aerospace
Corporation (a) ........................... 43,000 1,268,500
Sundstrand Corporation ........................ 25,000 1,350,000
AGRICULTURE (0.53%)
Pioneer Hi-Bred International, Inc. ......... 18,400 1,472,000
AIR TRANSPORTATION (0.84%)
AMR Corporation (a) ........................... 25,200 2,331,000
APPAREL PRODUCTS (2.41%)
Gucci Group nv - NY registered
share (b) ................................. 68,300 4,396,812
Tommy Hilfiger Corporation (a) (b) ............ 56,000 2,250,500
BUSINESS SERVICES (2.42%)
ADT Ltd. (a) (b) .............................. 43,500 1,435,500
CUC International, Inc. (a) (b) ............... 145,500 3,755,719
Equifax, Inc. ................................. 40,400 1,502,375
CHEMICALS & ALLIED PRODUCTS (6.50%)
Colgate-Palmolive Company ..................... 42,000 2,740,500
E. I. du Pont de Nemours &
Company .................................... 66,200 4,162,325
Gillette Company .............................. 91,100 8,631,725
IMC Global, Inc. .............................. 33,500 1,172,500
Monsanto Company .............................. 28,900 1,244,506
COMMERCIAL BANKS (2.37%)
Citicorp .................................... 54,200 6,534,487
COMMUNICATIONS EQUIPMENT (3.62%)
Bay Networks, Inc. (a) ........................ 60,100 1,596,406
Oy Nokia AB - Sponsored ADR .................. 62,700 4,624,125
Telefonaktiebolaget LM Ericsson -
Sponsored ADR .............................. 22,800 897,750
Tellabs, Inc. (a) ........................... 51,400 2,871,975
COMPUTER & DATA PROCESSING SERVICES (7.99%)
Adaptec, Inc. (a) ........................... 37,200 1,292,700
Electronics For Imaging, Inc. (a) ............ 61,200 2,891,700
First Data Corporation ........................ 66,512 2,922,371
Microsoft Corporation (a) ..................... 40,600 5,130,825
Oracle Corporation (a) ........................ 120,700 6,080,262
Parametric Technology
Company (a) (b) ........................... 88,100 3,749,756
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (5.98%)
Cisco Systems, Inc. (a) ..................... 103,300 $ 6,934,013
Hewlett-Packard Company ..................... 50,400 2,822,400
International Business Machines
Corporation .............................. 44,800 4,040,400
International Game Technology ............... 153,000 2,715,750
DEPARTMENT STORES (2.90%)
TJX Companies, Inc. ........................... 60,000 1,582,500
Wal-Mart Stores, Inc. (b) ..................... 189,900 6,420,994
DRUG STORES & PROPRIETARY STORES (0.60%)
Rite Aid Corporation ........................ 33,000 1,645,875
ELECTRICAL GOODS (2.06%)
Motorola, Inc. .............................. 39,400 2,994,400
Westinghouse Electric Corporation . 116,700 2,698,688
ELECTRONIC COMPONENTS & ACCESSORIES (8.51%)
Altera Corporation (a) ........................ 71,100 3,590,550
Intel Corporation ........................... 17,600 2,495,900
Linear Technology Corporation (b) ............ 108,600 5,620,050
Maxim Integrated Products, Inc. (a) . 42,500 2,417,187
Texas Instruments, Inc. ..................... 68,900 5,791,906
Xilinx, Inc. (a) .............................. 72,900 3,576,656
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.53%)
General Electric Company ..................... 112,000 7,322,000
Sunbeam Corporation, Inc. (b) ............... 137,200 5,179,300
ENGINEERING & MANAGEMENT SERVICES (1.12%)
Halliburton Company ........................... 38,900 3,082,825
ENVIRONMENTAL SERVICES (1.46%)
United Waste Systems, Inc. (a) ............... 34,000 1,394,000
U.S.A. Waste Services, Inc. (a) (b) . 68,000 2,626,500
FABRICATED METAL PRODUCTS (0.26%)
Newell Company .............................. 17,900 713,183
HOTELS & OTHER LODGING PLACES (0.36%)
Mirage Resorts, Inc. (a) ..................... 40,000 1,010,000
INDUSTRIAL MACHINERY & EQUIPMENT (3.78%)
Applied Materials, Inc. (a) .................. 39,000 2,761,688
Kulicke & Soffa Industries, Inc. (a) ......... 43,900 1,425,376
Smith International, Inc. (a) ............... 33,100 2,010,825
United Technologies Corporation ............... 51,200 4,249,600
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
41
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE (3.65%)
American International Group, Inc. . 45,400 $ 6,781,625
MGIC Investment Corporation ............ 40,000 1,917,500
Oxford Health Plans, Inc. (a) ......... 19,100 1,370,425
LUMBER & OTHER BUILDING MATERIALS (2.99%)
Home Depot, Inc. ..................... 119,700 8,251,819
MANUFACTURING INDUSTRIES (2.07%)
Tyco International Ltd. (b) ............ 82,000 5,704,125
MEDICAL INSTRUMENTS & SUPPLIES (0.92%)
Becton, Dickinson & Company ............ 32,500 1,645,313
Hologic, Inc. (a) ..................... 34,000 905,250
MORTGAGE BANKERS AND BROKERS (1.09%)
The Money Store, Inc. (b) ............ 105,000 3,012,188
OIL & GAS EXTRACTION (1.81%)
Schlumberger Ltd. ..................... 40,000 5,000,000
PERSONAL SERVICES (1.12%)
Cintas Corporation ..................... 29,000 1,993,750
Service Corporation International ...... 33,200 1,091,450
PHARMACEUTICALS (10.83%)
BioChem Pharma, Inc. (a) ............... 124,400 2,767,900
Bristol-Myers Squibb Company ......... 20,000 1,620,000
Eli Lilly & Company .................. 74,600 8,154,712
McKesson Corporation .................. 17,000 1,317,500
Merck & Co., Inc. ..................... 74,000 7,659,000
Pfizer, Inc. ........................... 22,900 2,736,550
Schering-Plough Corporation ............ 28,200 1,350,075
Warner-Lambert Company ............... 34,500 4,286,625
PRIMARY METAL INDUSTRIES (0.69%)
Titanium Metals Corporation (a) (b) . 60,000 1,897,500
RESTAURANTS (0.26%)
PepsiCo, Inc. ........................ 19,200 721,200
RUBBER & MISC. PLASTIC PRODUCTS (0.54%)
EVI, Inc. (a) ........................ 35,600 1,495,200
SECURITY & COMMODITY BROKERS (4.30%)
Charles Schwab Corporation ............ 69,400 2,823,713
Morgan Stanley, Dean Witter,
Discover and Co. .................. 180,675 7,780,317
Paine Webber Group Inc. ............... 36,200 1,267,000
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
STONE, CLAY, & GLASS PRODUCTS (0.46%)
Corning Inc. (b) ..................... 23,000 $ 1,279,375
TELECOMMUNICATIONS (1.69%)
WorldCom, Inc. (a) ..................... 145,900 4,668,800
WATER TRANSPORTATION (1.52%)
Carnival Corporation - Class A ......... 101,500 4,186,875
-------------
Total Common Stocks
(cost: $ 210,153,241) .................. 265,278,703
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------------- -----------------
<S> <C> <C>
SHORT-TERM OBLIGATION (6.40%)
Investors Bank & Trust Company (c)
5.51% Repurchase
Agreement dated 6/30/97
to be repurchased at
$ 17,689,996 on 7/01/97 ...... $ 17,687,289 $ 17,687,289
-------------
Total Short-Term Obligation
(cost: $ 17,687,289) ........................... 17,687,289
-------------
Total Investment Securities
(cost: $ 227,840,530) ........................... $ 282,965,992
=============
SUMMARY
Investments at market value ... 102.48% $ 282,965,992
Other Liabilities in .........
Excess of Assets ............ (2.48%) (6,852,812)
--------------- -------------
Net Assets ..................... 100.00% $ 276,113,180
=============== =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Collateralized by $ 5,207,831 Small Business Administration 7.00% due
03/25/15; $ 3,005,651 Small Business Administration 7.00% due 08/25/15;
$ 3,004,881 Small Business Administration 7.63% due 08/25/15;
$ 4,861,108 Small Business Administration 7.00% due 09/25/15;
$ 3,392,686 Small Business Administration 8.38% due 10/25/21;
$ 7,000,000 Small Business Administration 7.13% due 11/25/19;
$ 1,600,000 Small Business Administration 8.38% due 02/25/20; market
value and accrued interest aggregated $ 3,456,790, $ 1,018,104,
$ 2,035,742, $ 1,654,086, $ 3,367,609, $ 5,789,764, and $ 1,253,671,
respectively, for the collateral at June 30,1997.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
42
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (32.13%)
U.S. Treasury Bonds (b)
7.25 %, due 05/15/16 ............ $ 1,500,000 $ 1,563,525
U.S. Treasury Bonds
7.50 %, due 11/15/16 ............ 1,500,000 1,602,570
U.S. Treasury Bonds
7.13 %, due 02/15/23 ............ 2,000,000 2,059,620
U.S. Treasury Notes
7.88 %, due 01/15/98 ............ 1,700,000 1,720,587
U.S. Treasury Notes (b)
6.38 %, due 08/15/02 ............ 2,000,000 1,998,960
U.S. Treasury Notes (b)
7.25 %, due 08/15/04 ............ 2,000,000 2,082,940
U.S. Treasury Notes
6.50 %, due 05/15/05 ............ 2,000,000 1,994,860
U.S. Treasury Notes (b)
6.50 %, due 10/15/06 ............ 2,000,000 1,990,200
U.S. Treasury Notes
7.00 %, due 04/15/99 ............ 2,000,000 2,031,380
U.S. Treasury Notes
7.13 %, due 09/30/99 ............ 1,500,000 1,530,300
U.S. Treasury Notes
6.00 %, due 10/15/99 ............ 1,000,000 998,200
------------
Total U.S. Government Obligations
(cost: $ 19,637,597)........................... 19,573,142
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (2.56%)
AGRICULTURE (1.34%)
Dole Food Company ........................... 19,000 $ 817,000
LIFE INSURANCE (1.22%)
SunAmerica, Inc. (b) ........................ 17,000 741,625
------------
Total Convertible Preferred Stocks
(cost: $ 1,428,030)....................................... 1,558,625
------------
PREFERRED STOCKS (1.38%)
HOLDING & OTHER INVESTMENT OFFICES (1.38%)
CRI Insured Mortgage
Association, Inc. ........................ 23,500 840,125
------------
Total Preferred Stocks
(cost: $ 602,375) ....................................... 840,125
------------
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (62.11%)
AEROSPACE (1.65%)
Boeing Company .............................. 19,000 $ 1,008,187
AMUSEMENT & RECREATION SERVICES (1.28%)
Colonial Downs Holdings, Inc. (a) ............ 120,000 780,000
AUTOMOTIVE (1.08%)
Chrysler Corporation ........................ 20,000 656,250
AUTOMOTIVE DEALERS & SERVICE STATIONS (1.53%)
Ugly Duckling Corp. (a) (b) .................. 60,000 930,000
CHEMICALS & ALLIED PRODUCTS (2.72%)
IMC Global, Inc. .............................. 20,000 700,000
Styling Technology Corporation (a) ............ 85,000 956,250
COMMERCIAL BANKS (2.97%)
BankAmerica Corporation ..................... 13,200 852,225
Norwest Corporation ........................... 17,000 956,250
COMMUNICATIONS EQUIPMENT (2.54%)
Lucent Technologies, Inc. ..................... 13,500 972,844
SymmetriCom, Inc. (a) ........................ 40,000 575,000
COMPUTER & DATA PROCESSING SERVICE (1.65%)
Computer Associates
International, Inc. ..................... 18,000 1,002,375
COMPUTER & OFFICE EQUIPMENT (1.20%)
Hewlett-Packard Company ..................... 13,000 728,000
DEPARTMENT STORES (1.55%)
Wal-Mart Stores, Inc. ........................ 28,000 946,750
EDUCATIONAL SERVICES (0.50%)
UOL Publishing, Inc. (a) ..................... 25,000 306,250
ELECTRICAL GOODS (1.50%)
Motorola, Inc. .............................. 12,000 912,000
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.40%)
General Electric Company ..................... 13,000 849,875
FINANCE (3.04%)
Fannie Mae .................................... 20,000 872,500
Student Loan Marketing Association . 7,700 977,900
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
43
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
GAS PRODUCTION & DISTRIBUTION (1.43%)
Sonat, Inc. ........................... 17,000 $ 871,250
HEALTH SERVICES (1.09%)
Columbia/HCA Healthcare
Corporation ........................ 16,950 666,347
HOLDING & OTHER INVESTMENT OFFICES (11.01%)
Annaly Mortgage Management,
Inc. (a) ........................... 50,000 500,000
Equity Residential Properties Trust ... 17,000 807,500
Health and Retirement
Property Trust ..................... 31,000 583,188
Liberty Property Trust ............... 24,000 597,000
LTC Properties, Inc. .................. 46,000 833,750
Merry Land & Investment
Company, Inc. ..................... 23,000 498,813
Prime Retail, Inc. .................. 70,000 940,625
Shurgood Storage Centers,
Inc. - Class A ..................... 19,000 532,000
Storage USA, Inc. ..................... 16,500 631,125
Walden Residential Properties, Inc. ... 27,000 783,000
INSURANCE (4.22%)
Allstate Corporation .................. 12,000 876,000
Travelers Group, Inc. ............... 14,500 914,406
United Healthcare Corporation ......... 15,000 780,000
LIFE INSURANCE (2.74%)
Equitable of Iowa Companies ......... 14,000 784,000
Western National Corporation ......... 33,000 884,812
MINING (1.36%)
Potash Corporation of
Saskatchewan, Inc. ............... 11,000 825,687
MORTGAGE BANKERS AND BROKERS (0.77%)
Mego Financial Corp. (a) ............ 65,000 471,250
OIL & GAS EXTRACTION (1.59%)
Dresser Industries, Inc. ............ 26,000 968,500
PAPER & ALLIED PRODUCTS (1.14%)
Kimberly-Clark Corporation ............ 14,000 696,500
PHARMACEUTICALS (1.51%)
American Home Products
Corporation ........................ 12,000 918,000
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
REAL ESTATE (2.67%)
Cornerstone Properties, Inc. ......... 40,000 $ 615,000
Westfield America, Inc. (a)(b) ...... 60,000 1,012,500
SAVINGS INSTITUTIONS (2.25%)
ITLA Capital Corporation (a) ......... 33,000 536,250
Washington Mutual, Inc. (b) ......... 14,000 836,500
SOCIAL SERVICES (0.58%)
Brookdale Living
Communities, Inc. (a) ............ 30,000 356,250
STONE, CLAY, & GLASS PRODUCTS (1.43%)
Gentex Corporation (a) ............... 44,000 869,000
TELECOMMUNICATIONS (1.17%)
GTE Corporation ..................... 16,300 715,163
TOBACCO PRODUCTS (1.31%)
Philip Morris Companies, Inc. ......... 18,000 798,750
TRUCKING & WAREHOUSING (1.23%)
Heartland Express, Inc. (a) ......... 32,000 752,000
------------
Total Common Stocks
(cost: $ 31,116,126) .................. 37,837,822
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------------
<S> <C> <C>
SHORT-TERM OBLIGATION (0.23%)
Prudential-Bache Securities, Inc. (c)
5.27%, Repurchase
Agreement dated 06/30/97
to be repurchased at
$ 138,123 on 07/01/97 ............... $138,103 $ 138,103
-------------
Total Short-Term Obligation
(cost: $ 138,103)................................. 138,103
-------------
Total Investment Securities
(cost: $ 52,922,231).............................. $ 59,947,817
=============
SUMMARY
Investments at market value ......... 98.41% $ 59,947,817
Other Assets in
Excess of Liabilities . ............ 1.59% 967,691
--------- -------------
Net Assets ........................... 100.00% $ 60,915,508
========= =============
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
44
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Collateralized by $ 172,167 Fannie Mae 6.01% due 01/01/34; market value and
accrued interest aggregated $ 140,866 for this collateral at June 30,
1997.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
45
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (F)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (8.96%)
U.S. Treasury Notes (b)
6.38%, due 04/30/99 .................. $ 4,000,000 $ 4,021,248
------------
Total U.S. Government Obligation
(cost: $ 4,013,546) ................................. 4,021,248
------------
CORPORATE DEBT SECURITIES (1.99%)
PHARMACEUTICALS (1.99%)
Alza Corporation
zero coupon, due 07/14/14 ............ 1,020,000 441,150
Roche Holding AG - Series 144A (c)
zero coupon, due 05/06/12 ............ 1,050,000 452,813
------------
Total Corporate Debt Securities
(cost: $ 863,471) .................................... 893,963
------------
CONVERTIBLE BONDS (8.97%)
APPAREL & ACCESSORY STORES (1.10%)
Saks Holdings, Inc.
5.50%, due 09/15/06 ............... 565,000 492,962
COMPUTER & OFFICE EQUIPMENT (1.08%)
Solectron Corporation -
Series 144A (c)
6.00%, due 03/01/06 ............... 390,000 484,088
ELECTRIC, GAS & SANITARY SERVICES (0.31%)
Korea Electric Power Corporation
5.00%, due 08/01/01 ............... 140,000 139,475
HEALTH SERVICES (0.56%)
Tenet Healthcare Corporation
6.00%, due 12/01/05 ............... 200,000 251,500
LUMBER & OTHER BUILDING MATERIALS (1.01%)
Home Depot, Inc.
3.25%, due 10/01/01 ............... 400,000 452,000
SECURITY & COMMODITY BROKERS (4.91%)
Merrill Lynch STRYPES
convertible to SunAmerica, Inc.
7.25%, due 04/15/99 ............... 6,500 445,250
Merrill Lynch STRYPES
convertible to IMC Global, Inc.
6.25%, due 01/02/01 ............... 10,200 382,500
Merrill Lynch STRYPES
convertible to MGIC Investment
Corporation
6.50%, due 08/15/98 ............... 10,800 891,000
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
CONVERTIBLE BONDS (CONTINUED)
SECURITY & COMMODITY BROKERS (CONTINUED)
Salomon, Inc. DECS
6.25%, due 02/01/01 ............... $ 7,600 $ 485,450
------------
Total Convertible Bonds
(cost: $ 3,563,090).........................................4,024,225
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (13.18%)
COMMERCIAL BANKS (0.77%)
National Australia Bank, Ltd. ...... 12,300 $ 343,631
COMMUNICATIONS EQUIPMENT (1.03%)
TCI Pacific Communications ......... 4,500 463,500
COMPUTER & DATA PROCESSING SERVICE (1.80%)
Microsoft Corporation - Series A ... 9,300 809,100
ENVIRONMENTAL SERVICES (0.96%)
Browning-Ferris Industries, Inc. ... 12,900 428,925
GAS PRODUCTION & DISTRIBUTION (1.64%)
Williams Companies, Inc. ............ 7,100 736,625
INSURANCE (1.00%)
Aetna Inc. ........................... 4,800 450,000
MANUFACTURING INDUSTRIES (2.27%)
Mattel, Inc. - Series C ............ 72,000 1,017,000
METAL MINING (0.96%)
Coeur d'Alene Mines Corporation (b) . 25,600 428,800
PAPER & PAPER PRODUCTS (0.48%)
Amcor Ltd. (a) ..................... 4,100 217,300
PETROLEUM REFINING (1.07%)
Tosco Financing Trust -
Series 144A (a) (c) ............... 8,700 480,675
PRINTING & PUBLISHING (0.56%)
Hollinger International, Inc. ...... 21,800 250,700
SECURITY & COMMODITY BROKERS (0.64%)
Salomon, Inc. - Series FSA ......... 8,200 285,975
-----------
Total Convertible Preferred Stocks
(cost: $ 5,207,628).............................. 5,912,231
-----------
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
46
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (F)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (63.73%)
AUTOMOTIVE (0.49%)
Ford Motor Company ............... 5,800 $ 218,950
BEER, WINE, & DISTILLED BEVERAGES (1.03%)
Guinness plc - Sponsored ADR (b) ... 9,400 459,946
CHEMICALS & ALLIED PRODUCTS (0.99%)
Dow Chemical Company ............... 5,100 444,338
COMMERCIAL BANKS (2.93%)
First Union Corporation ............ 5,100 471,750
Mellon Bank Corporation ............ 8,200 370,025
NationsBank Corporation ............ 7,300 470,850
ELECTRIC SERVICES (22.64%)
China Light & Power Company Ltd. ... 90,000 510,017
DPL, Inc. ........................ 43,100 1,061,338
DQE, Inc. ........................ 35,700 1,008,525
Duke Power Company ............... 37,179 1,782,268
Empresa Nacional Electricidad SA -
Sponsored ADR (b) ............... 29,200 658,825
FPL Group, Inc. .................. 28,200 1,298,963
GPU, Inc. ........................ 8,500 304,938
National Power Plc - Sponsored
ADR ........................... 23,730 834,999
NIPSCO Industries, Inc. ............ 25,100 1,036,944
Southern Company .................. 41,100 899,063
Texas Utilities Company ............ 22,100 761,069
ELECTRIC, GAS, & SANITARY SERVICES (1.73%)
American Water Works
Company, Inc. .................. 8,000 171,000
Korea Electric Power Corporation -
Sponsored ADR (b) ............... 14,000 261,625
PG&E Corporation .................. 14,100 341,925
FOOD & KINDRED PRODUCTS (2.94%)
General Mills, Inc. ............... 6,900 449,363
H.J. Heinz Company ............... 10,300 475,088
RJR Nabisco Holdings Corp. ......... 12,000 396,000
GAS PRODUCTION & DISTRIBUTION (3.37%)
Pacific Enterprises ............... 26,500 891,063
Williams Companies, Inc. ......... 14,200 621,250
HOLDING & OTHER INVESTMENT OFFICES (3.92%)
Boston Properties, Inc. (a) (b) ... 17,000 467,500
Meditrust Corporation ............ 32,400 1,291,950
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (D)
SunAmerica, Inc. .................. 2 $ 98
OIL & GAS EXTRACTION (1.02%)
YPF Sociedad Anonima -
Sponsored ADR .................. 14,900 458,175
PAPER & ALLIED PRODUCTS (1.00%)
Tambrands, Inc. .................. 9,000 448,875
PETROLEUM REFINING (4.42%)
Exxon Corporation .................. 7,300 448,950
MAPCO, Inc. ........................ 20,700 652,050
Mobil Corporation .................. 6,400 447,200
Texaco Inc. ........................ 4,000 435,000
PHARMACEUTICALS (3.16%)
American Home Products
Corporation (a) ............... 5,800 443,700
Bristol-Myers Squibb Company ...... 6,000 486,000
Merck & Co., Inc. .................. 4,700 486,450
TELECOMMUNICATIONS (12.06%)
Ameritech Corporation ............ 16,200 1,100,588
BellSouth Corporation ............ 24,000 1,113,000
GTE Corporation .................. 24,300 1,066,162
Nippon Telegraph & Telephone (a) ... 43 412,955
SBC Communications, Inc. ......... 18,233 1,128,137
Stet Societa' Finanziaria
Telefonica S.p.A. ............... 172,300 595,651
TOBACCO PRODUCTS (2.03%)
Philip Morris Companies, Inc. ...... 20,600 914,124
------------
Total Common Stocks
(cost: $ 25,528,488) ............... 28,596,687
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
<S> <C> <C>
SHORT-TERM OBLIGATION (4.19%)
Greenwich Capital Markets, Inc. (e)
5.95%, Repurchase
Agreement dated 06/30/97
to be repurchased at
$ 1,879,311 on 07/01/97............ $ 1,879,000 $ 1,879,000
------------
Total Short-Term Obligation
(cost: $ 1,879,000).............................. 1,879,000
------------
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
47
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (F)
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
MARKET
VALUE
----------------
<S> <C> <C>
Total Investment Securities
(cost: $ 41,055,223)........................... $ 45,327,354
============
SUMMARY
Investments at market value 101.02% $ 45,327,354
Other Liabilities in
Excess of Assets ......... (1.02%) (456,790)
------------- ------------
Net Assets .................. 100.00% $ 44,870,564
============= ============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET VALUE PERCENTAGE
-------------- -----------
<S> <C> <C>
Hong Kong ......... $ 510,017 1.14%
Italy ............... 595,652 1.33%
Japan ............... 412,956 0.92%
United States ...... 43,351,939 96.61%
------------- -------
Net Assets ......... $ 44,870,564 100.00%
============= =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(d) Percentage is less than .01%.
(e) Collateralized by $1,827,000 U.S. Treasury Notes 7.25% due 05/15/04; market
value and accrued interest aggregated $1,905,218 for this collateral at
June 30, 1997.
(f) Prior to May 1, 1997, this portfolio was named Utility.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
48
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (8.20%)
U.S. Treasury Notes
6.25%, due 10/31/01 ..................... $ 5,000,000 $ 4,973,850
U.S. Treasury Notes (b)
6.88%, due 03/31/00 ..................... 2,500,000 2,539,750
U.S. Treasury Notes (b)
6.38%, due 08/15/02 ..................... 5,000,000 4,997,400
U.S. Treasury Notes
5.38%, due 05/31/98 ..................... 4,000,000 3,986,640
U.S. Treasury Notes
5.88%, due 08/15/98 ..................... 2,000,000 1,999,300
U.S. Treasury Notes
7.13%, due 10/15/98 ..................... 3,000,000 3,043,980
------------
Total U.S. Government Obligations
(cost: $ 21,632,710) .................................... 21,540,920
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (8.32%)
Federal Farm Credit Banks
6.00%, due 06/24/99 ..................... 5,000,000 4,965,950
Federal Home Loan Bank
6.25%, due 06/24/02 ..................... 4,000,000 4,021,680
Federal Home Loan Bank
6.51%, due 05/25/01 ..................... 4,500,000 4,461,524
Federal Home Loan Bank
zero coupon, due 01/21/03 ............... 5,000,000 3,422,450
Student Loan Marketing Association
6.25%, due 03/17/00 ..................... 5,000,000 4,973,600
------------
Total U.S. Government Agency Obligations
(cost: $ 21,294,725) .................................... 21,845,204
------------
MUNICIPAL BOND SECURITIES (0.38%)
New Jersey Economic Development
Authority 7.60%, due 6/30/02 ............ 40,000 1,000,000
------------
Total Muncipal Bond Security
(cost $ 1,000,000)....................................... 1,000,000
------------
CORPORATE DEBT SECURITIES (16.80%)
APPAREL & ACCESSORY STORES (1.86%)
Nordstrom Credit Inc.
6.70%, due 07/01/05 ..................... 5,000,000 4,887,500
AUTOMOTIVE (3.81%)
Chrysler Financial Corporation
6.95%, due 03/25/02 ..................... 5,000,000 5,012,500
Ford Motor Credit - Series MTN
5.81%, due 11/09/98 ..................... 5,000,000 5,000,895
PRINCIPAL MARKET
AMOUNT VALUE
------------- ------------
CORPORATE DEBT SECURITIES (CONTINUED)
COMMERCIAL BANKS (0.76%)
U.S. West Capital Funding
6.85%, due 01/15/02 ..................... $ 2,000,000 $ 2,000,000
COMPUTER & DATA PROCESSING SERVICES (0.75%)
Oracle Corporation
6.72%, due 02/15/04 ..................... 2,000,000 1,967,500
FABRICATED METAL PRODUCTS (0.39%)
Masco Corporation
6.63%, due 09/15/99 ..................... 1,000,000 1,005,000
FINANCE (5.70%)
Fannie Mae
5.68%, due 10/07/97 ..................... 4,000,000 4,002,439
Fannie Mae
6.81%, due 05/15/00 ..................... 1,000,000 1,001,300
Fannie Mae (c)
6.02%, due 04/14/00 ..................... 5,000,000 4,994,950
Federal Home Loan Mortgage
Corporation
7.10%, due 02/20/04 ..................... 5,000,000 4,977,450
HOLDING & OTHER INVESTMENT OFFICES (1.97%)
URC Holdings Corporation - 144A (d)
7.88%, due 06/30/06 ..................... 5,000,000 5,175,000
SECURITY & COMMODITY BROKERS (1.94%)
Merrill Lynch & Co., Inc.
7.26%, due 03/25/02 ..................... 5,000,000 5,083,910
------------
Total Corporate Debt Securities
(cost: $ 44,898,478) ........................................45,108,444
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
PREFERRED STOCKS (0.38%)
TELECOMMUNICATIONS (0.38%)
MCI Capital I - Series A 40,000 $ 1,000,000
------------
Total Preferred Stock
(cost: $ 1,000,000).................. 1,000,000
------------
COMMON STOCKS (58.38%)
AIR TRANSPORTATION (1.33%)
Comair Holdings, Inc. (b) 125,000 3,460,938
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
49
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
AUTOMOTIVE (3.28%)
Chrysler Corporation .................. 170,000 $ 5,578,125
Ford Motor Company ..................... 80,000 3,020,000
CHEMICALS & ALLIED PRODUCTS (1.33%)
Dow Chemical Company .................. 40,000 3,485,000
COMMUNICATION (1.37%)
Cox Communication, Inc. -
Class A (a) ........................ 150,000 3,600,000
COMMUNICATIONS EQUIPMENT (2.09%)
ECI Telecommunications Limited ......... 100,000 2,975,000
Philips Electronics nv - ADR NY
registered share ..................... 35,000 2,515,625
COMPUTER & DATA PROCESSING SERVICE (2.05%)
Cabletron Systems, Inc. (a) ............ 105,000 2,972,813
Digi International Inc. (a) ............ 125,000 1,265,625
NCR Corporation (a) ..................... 3,750 111,563
Novell, Inc. (a) (b) .................. 150,000 1,040,625
COMPUTER & OFFICE EQUIPMENT (2.01%)
Seagate Technology, Inc. (a) (b) ...... 150,000 5,278,125
DEPARTMENT STORES (1.00%)
TJX Companies, Inc. ..................... 100,000 2,637,500
ELECTRICAL GOODS (1.42%)
Arrow Electronics, Inc. (a) (b) ......... 70,000 3,718,750
ELECTRONIC COMPONENTS & ACCESSORIES (2.20%)
Intel Corporation ..................... 20,000 2,836,250
MEMC Electronic Materials, Inc. (a) ... 90,000 2,947,500
FINANCE (2.72%)
Federal Home Loan Mortgage
Corporation ........................ 100,000 3,437,500
Fannie Mae .............................. 85,000 3,708,125
HOLDING & OTHER INVESTMENT OFFICES (2.18%)
Health Care Property Investors, Inc. . 500 17,530
Merry Land & Investment
Company, Inc. ........................ 50,000 1,084,375
Trizec Hahn Corporation ............... 150,000 3,206,250
United Dominion Realty Trust, Inc. ...... 100,000 1,418,750
INDUSTRIAL MACHINERY & EQUIPMENT (2.05%)
Applied Materials, Inc. (a) ............ 55,000 3,894,688
Briggs & Stratton Corporation ......... 30,000 1,500,000
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
INSURANCE (6.68%)
AFLAC, Inc. ........................... 80,000 $ 3,780,000
AMBAC, Inc. ........................... 35,000 2,673,125
Frontier Insurance Group, Inc. (b) ...... 38,000 2,460,500
MGIC Investment Corporation ............ 50,000 2,396,875
PMI Group, Inc. (b) ..................... 100,000 6,237,500
MINING (1.57%)
Potash Corporation of
Saskatchewan, Inc. .................. 55,000 4,128,438
MOBILE HOME DEALERS (0.69%)
Oakwood Homes Corp. (b) ............... 75,000 1,800,000
MORTGAGE BANKERS AND BROKERS (3.82%)
Countrywide Credit Industries, Inc. ... 138,400 4,316,350
Green Tree Financial Corporation ...... 160,000 5,700,000
MOTION PICTURES (1.55%)
News Corporation Ltd. - ADR (b) ......... 260,000 4,062,500
PRIMARY METAL INDUSTRIES (3.47%)
Alumax, Inc. (a) ........................ 100,000 3,793,750
Aluminum Company of America ............ 50,000 3,768,750
Birmingham Steel Corporation ............ 100,000 1,550,000
PRINTING & PUBLISHING (0.46%)
Viacom, Inc. - Class A (a) ............ 40,000 1,200,000
RESIDENTIAL BUILDING CONSTRUCTION (1.63%)
Clayton Homes, Inc. ..................... 300,000 4,275,000
RETAIL TRADE (2.99%)
Fingerhut Companies, Inc. ............... 200,000 3,487,500
Toys "R" Us, Inc. (a) .................. 125,000 4,375,000
SECURITY & COMMODITY BROKERS (1.00%)
Lehman Brothers Holdings, Inc. ......... 65,000 2,632,500
SHOE STORES (1.67%)
Payless ShoeSource, Inc. (a) ............ 80,000 4,375,000
TELECOMMUNICATIONS (4.60%)
360 Communications Company (a) ......... 250,000 4,281,250
A T & T Corporation ..................... 110,000 3,856,875
Sprint Corporation ..................... 75,000 3,946,874
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
50
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
---------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TOBACCO PRODUCTS (3.22%)
Philip Morris Companies, Inc. 150,000 $ 6,656,250
UST, Inc. .................. 65,000 1,803,750
-------------
Total Common Stocks
(cost: $ 127,497,721) .................. 153,268,444
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------- -----------------
<S> <C> <C>
COMMERCIAL PAPER (7.81%)
Anchor Funding Corporation
5.85%, due 07/14/97 ......... $ 500,000 $ 498,943
Oglethorpe Corporation
5.67%, due 07/03/97 ......... 600,000 599,811
Oglethorpe Corporation
5.70%, due 07/03/97 ......... 250,000 249,921
Oglethorpe Corporation
5.75%, due 07/03/97 ......... 1,250,000 1,249,601
Southwest Electric Corporation
5.70%, due 07/10/97 ......... 4,450,000 4,443,659
Southwest Electric Corporation
5.65%, due 07/10/97 ......... 825,000 823,835
Merrill Lynch & Co., Inc.
5.56%, due 07/02/97 ......... 5,700,000 5,699,120
Green Tree Financial Corporation
5.78%, due 07/07/97 ......... 1,950,000 1,948,121
Green Tree Financial Corporation
5.76%, due 07/07/97 ......... 5,000,000 4,995,200
-------------
Total Commercial Paper
(cost: $ 20,508,211) ........................... 20,508,211
-------------
Total Investment Securities
(cost: $ 238,461,845)........................... $ 264,271,223
=============
SUMMARY
Investments at market value ...... 100.65% $ 264,271,223
Other Liabilities in
Excess of Assets ............ (0.65%) (1,751,886)
------------- -------------
Net Assets ..................... 100.00% $ 262,519,337
============= =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of June 30, 1997, security is on loan. See footnote 1C to financial
statements
(c) Floating rate security. Rate listed is as of June 30, 1997.
(d) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
51
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (99.11%)
AEROSPACE (3.70%)
AAR Corporation .............................. 20,000 $ 646,250
Thiokol Corporation ........................... 11,000 770,000
AIR TRANSPORTATION (2.18%)
Airborne Freight Corporation .................. 20,000 837,500
APPAREL PRODUCTS (3.76%)
Nautica Enterprises, Inc. (a) ............... 31,000 819,563
U.S. Industries, Inc. (a) ..................... 17,400 619,875
APPAREL & ACCESSORY STORES (2.28%)
Claire's Stores, Inc. ........................ 50,000 875,000
AUTOMOTIVE (2.19%)
Carlisle Companies, Inc. ..................... 24,000 837,000
CHEMICALS & ALLIED PRODUCTS (1.92%)
Dexter Corporation ........................... 23,000 736,000
COMMERCIAL BANKS (5.33%)
City National Corporation ..................... 31,000 745,937
Magna Group, Inc. ........................... 24,000 834,000
Provident Bankshares Corporation ............ 1 22
Provident Financial Group, Inc. ............... 10,800 461,700
COMMUNICATIONS EQUIPMENT (6.29%)
Bay Networks, Inc. (a) ........................ 33,000 876,562
DSC Communications Corporation (a) . 30,000 667,500
Lucent Technologies, Inc. ..................... 12,000 864,750
COMPUTER & DATA PROCESSING SERVICE (6.44%)
Banyan Systems, Inc. (a) ..................... 33,100 74,475
Oracle Corporation (a) ........................ 22,000 1,108,250
S3 Incorporated (a) ........................... 45,600 501,600
Sun Microsystems, Inc. (a) .................. 21,000 781,593
COMPUTER & OFFICE EQUIPMENT (11.05%)
Applied Magnetics Corporation (a) ............ 26,000 588,250
Cisco Systems, Inc. (a) ..................... 4,500 302,062
Compaq Computer Corporation (a) ............... 7,500 744,375
Seagate Technology, Inc. (a) .................. 18,000 633,375
Storage Technology Corporation (a) ............ 20,000 890,000
Western Digital Corporation (a) ............... 28,000 885,500
Xircom, Inc. (a) .............................. 15,000 186,563
DEPARTMENT STORES (1.38%)
Woolworth Corporation (a) ..................... 22,000 528,000
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (2.13%)
Read-Rite Corporation (a) ..................... 39,000 $ 814,125
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.19%)
Kuhlman Corporation ........................... 26,000 838,500
FOOD STORES (2.76%)
Ruddick Corporation ........................... 64,000 1,056,000
FOOD & KINDRED PRODUCTS (2.96%)
Lance, Inc. ................................. 20,000 382,500
Tasty Baking Company ........................ 43,000 752,500
GAS PRODUCTION & DISTRIBUTION (1.53%)
National Fuel Gas Company ..................... 14,000 587,125
HEALTH SERVICES (1.98%)
Express Scripts, Inc. - Class A (a) ......... 18,200 759,850
HOTELS & OTHER LODGING PLACES (1.96%)
Prime Hospitality Corporation (a) ............ 37,900 748,525
INDUSTRIAL MACHINERY & EQUIPMENT (8.63%)
Cincinnati Milacron, Inc. ..................... 23,000 596,563
Deere & Company .............................. 7,000 384,125
Manitowac Company ........................... 18,000 841,500
SPS Technologies, Inc. (a) .................. 13,000 919,750
U.S. Filter Corporation ..................... 20,550 559,987
INSTRUMENTS & RELATED PRODUCTS (1.54%)
GenRad, Inc. (a) .............................. 26,000 588,250
INSURANCE (5.03%)
CMAC Investment Corporation .................. 19,000 907,250
Selective Insurance Group ..................... 21,000 1,017,188
LIFE INSURANCE (1.53%)
SunAmerica, Inc. .............................. 12,000 585,000
MEDICAL INSTRUMENTS & SUPPLIES (3.31%)
Datascope Corporation (a) ..................... 29,000 569,125
Respironics, Inc. (a) ........................ 33,000 697,125
OIL & GAS EXTRACTION (2.11%)
Cross Timbers Oil Company ..................... 42,000 808,500
PAPER & ALLIED PRODUCTS (2.13%)
Republic Group, Inc. ........................ 40,600 817,075
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
52
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
---------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (4.17%)
Perrigo Company (a) ............ 60,000 $ 750,000
Watson Pharmaceutical, Inc. (a) 20,000 845,000
PRINTING & PUBLISHING (1.79%)
New England Business
Services, Inc. ............... 26,000 684,125
RETAIL TRADE (2.29%)
Toys "R" Us, Inc. (a) ............ 25,000 875,000
TEXTILE MILL PRODUCTS (2.32%)
Mohawk Industries, Inc. (a) ...... 39,000 887,250
WHOLESALE TRADE NONDURABLE GOODS (2.23%)
Richfood Holdings, Inc. ......... 32,900 855,400
-------------
Total Common Stocks
(cost: $ 34,705,837)........................ 37,943,040
-------------
Total Investment Securities
(cost: $ 34,705,837)........................ $ 37,943,040
=============
SUMMARY
Investments at market value ...... 99.11% $ 37,943,040
Other Assets in
Excess of Liabilities ......... 0.89% 339,896
------- -------------
Net Assets ..................... 100.00% $ 38,282,936
======= =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
53
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<S> <C> <C>
U.S GOVERNMENT OBLIGATIONS (28.62%)
U.S. Treasury Bonds
7.25%, due 08/15/22 ............... $ 300,000 $ 315,180
U.S. Treasury Notes
9.25%, due 08/15/98 ............... 150,000 155,473
U.S. Treasury Notes
6.63%, due 06/30/01 ............... 1,435,000 1,448,188
U.S. Treasury Notes
5.88%, due 02/15/04 ............... 730,000 707,516
U.S. Treasury Notes
7.25%, due 08/15/04 ............... 520,000 541,564
-----------
Total U.S. Government Obligations
(cost: $ 3,177,925) .............................. 3,167,921
-----------
ASSET-BACKED SECURITIES (0.59%)
General Motors Acceptance Corporation
6.75%, due 03/15/03 ............... 66,000 65,340
-----------
Total Asset-Backed Security
(cost: $ 64,614) ................................. 65,340
-----------
CORPORATE DEBT SECURITIES (1.95%)
BUSINESS CREDIT INSTITUTIONS (1.36%)
Commercial Credit Company
6.13%, due 12/01/05 ............... 160,000 150,400
COMMERCIAL BANKS (0.59%)
NationsBank Corporation
7.00%, due 05/15/03 ............... 65,000 65,244
-----------
Total Corporate Debt Securities
(cost: $ 215,379)................................. 215,644
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
PREFERRED STOCKS (1.30%)
COMPUTER & DATA PROCESSING SERVICE (1.30%)
SAP AG - Vorzug ........................... 695 $ 144,211
------------
Total Preferred Stocks
(cost: $ 106,185)....................................... 144,211
------------
COMMON STOCKS (63.43%)
AEROSPACE (0.76%)
Mitsubishi Heavy Industries Ltd. ............ 11,000 84,416
AGRICULTURE (0.83%)
Dole Food Company, Inc. ..................... 2,150 91,912
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
AUTO REPAIR, SERVICES & PARKING (0.45%)
Rollins Truck Leasing Corporation ......... 1,700 $ 25,287
Ryder System, Inc. ........................ 750 24,750
AUTOMOTIVE (2.40%)
Bayerische Motoren Werke AG ............... 105 86,848
Honda Motor Company, Ltd. .................. 3,000 90,361
Toyota Motor Corporation .................. 3,000 88,528
BEER, WINE, & DISTILLED BEVERAGES (0.68%)
Asahi Breweries ........................... 5,000 74,646
BUSINESS SERVICES (1.50%)
HealthCare COMPARE
Corporation (a) ........................ 500 26,187
Orix Corp. ................................. 900 66,710
Secom Co. Ltd. .............................. 1,000 73,424
CHEMICALS & ALLIED PRODUCTS (2.38%)
Bayer AG .................................... 1,980 76,063
Daicel Chemical Industries, Ltd. ............ 10,000 38,676
Hoechst AG ................................. 2,260 95,836
Mitsubishi Chemical Corp. .................. 16,000 52,244
COMMERCIAL BANKS (3.09%)
Den Danske Bank ........................... 1,050 102,123
Mediobanca SpA (a) ........................ 8,500 51,856
Sanwa Bank, Ltd. ........................... 6,000 89,052
Sumitomo Bank, Limited ..................... 6,000 98,481
COMPUTER & DATA PROCESSING SERVICES (1.94%)
Bay Networks, Inc. (a) ..................... 7,030 186,734
Cabletron Systems, Inc. (a) ............... 1,000 28,312
COMPUTER & OFFICE EQUIPMENT (3.64%)
3Com Corporation (a) ........................ 3,100 139,500
Cisco Systems, Inc. (a) ..................... 1,410 94,646
EMC Corporation (a) ........................ 650 25,350
Iomega Corporation (a) ..................... 1,400 27,825
Lexmark International
Group, Inc. - Class A (a) ............... 1,050 31,894
Quantum Corporation (a) ..................... 1,300 26,406
Seagate Technology, Inc. (a) ............... 800 28,150
Storage Technology Corporation (a) ......... 650 28,925
CONSTRUCTION (0.55%)
Diawa House Industry Co., Ltd. ............ 5,000 61,114
DEPARTMENT STORES (0.25%)
Takashimaya Company, Limited ............... 2,000 27,239
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
54
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRIC SERVICES (0.51%)
VEBA AG ................................. 1,000 $ 56,173
ELECTRONIC COMPONENTS & ACCESSORIES (0.80%)
Fujitsu Ltd. .............................. 5,000 69,408
Read-Rite Corporation (a) ............... 900 18,788
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.63%)
Canon, Inc. .............................. 3,000 81,718
NEC Corporation ........................... 6,000 83,814
Sharp Corporation ........................ 4,000 55,177
Sony Corporation ........................ 800 69,775
FABRICATED METAL PRODUCTS (0.86%)
Mitsubishi Materials Corporation ......... 14,000 55,980
NSK Limited .............................. 6,000 38,607
FOOD & KINDRED PRODUCTS (1.51%)
H.J. Heinz Company ........................ 1,475 68,034
Ralston-Ralston Purina Group ............ 1,200 98,625
HEALTH SERVICES (6.09%)
Beverly Enterprises (a) .................. 1,650 26,813
Columbia/HCA Healthcare
Corporation ........................... 3,250 127,766
Express Scripts, Inc. - Class A (a) ...... 650 27,138
Falck A/S ................................. 1,000 52,695
Genesis Health Ventures, Inc. (a) ......... 3,000 101,250
Health Care and Retirement
Corporation (a) ........................ 750 25,031
HEALTHSOUTH Corporation (a) ............... 1,200 29,925
Horizon/CMS Healthcare
Corporation (a) ........................ 1,450 29,091
Integrated Health Services, Inc. ......... 1,100 42,350
Living Centers of America, Inc. (a) ...... 1,500 59,250
Mariner Health Group, Inc. (a) ............ 2,750 42,453
Tenet Healthcare Corporation (a) ......... 2,550 75,384
Universal Health
Services, Inc. - Class B (a) ......... 900 34,650
HOLDING & OTHER INVESTMENT OFFICES (0.50%)
Nikko Securities Company Ltd. ............ 9,000 55,396
INSURANCE (3.35%)
Alleanza Assicurazioni (a) ............... 7,000 54,788
A/S Forsikrings-selskabet Codan ......... 400 52,695
Dai-Tokyo Fire & Marine
Insurance Co. (a) ..................... 10,000 57,971
NUMBER OF MARKET
SHARES VALUE
----------- -----------
COMMON STOCKS (CONTINUED)
INSURANCE (3.35%) (CONTINUED)
Oxford Health Plans, Inc. (a) ............ 2,300 $ 165,025
PacifiCare Health Systems,
Inc. - Class B (a) ..................... 250 15,969
United Healthcare Corporation ............ 500 26,000
MACHINERY, EQUIPMENT & SUPPLIES (0.89%)
Daikin Industries Ltd. .................. 5,000 45,399
Mannesmann AG ........................... 120 53,445
MANUFACTURING INDUSTRIES (1.37%)
Bulgari SpA .............................. 18,400 104,666
Cheminova Holding A/S - Class B ......... 2,000 47,388
MEDICAL INSTRUMENTS & SUPPLIES (0.59%)
Coloplast A/S - Class B .................. 980 65,363
METAL CANS & SHIPPPING CONTAINERS (1.23%)
Crown Cork & Seal Company, Inc. ......... 2,555 136,533
METAL MINING (8.29%)
Barrick Gold Corporation .................. 10,600 233,200
Battle Mountain Gold Company ............ 16,400 93,275
Echo Bay Mines Ltd. ..................... 17,500 100,625
Homestake Mining Company .................. 7,100 92,744
Newmont Mining Corporation ............... 4,100 159,900
Placer Dome, Inc. ........................ 14,500 237,438
MOTION PICTURES (0.87%)
Walt Disney Company ..................... 600 48,150
Time Warner, Inc. ........................ 1,000 48,250
OIL & GAS EXTRACTION (1.25%)
Ente Nazionale Idrocarburi SpA ............ 24,500 138,271
PHARMACEUTICALS (1.58%)
Novo Nordisk A/S - Class B ............... 1,600 174,405
PRIMARY METAL INDUSTRIES (1.28%)
Degussa AG .............................. 1,200 63,487
Kawasaki Steel Corporation ............... 24,000 78,156
RADIO & TELEVISION BROADCASTING (0.47%)
Viacom, Inc. - Class A (a) ............... 1,750 52,500
REAL ESTATE (0.87%)
Mitsui Fudosan Co., Ltd. .................. 7,000 96,560
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
55
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RESTAURANTS (2.86%)
Cracker Barrel Old Country
Store, Inc. ........................ 4,740 $ 125,610
Lone Star Steakhouse &
Saloon (a) ........................ 2,950 76,700
McDonald's Corporation ............... 2,370 114,501
RUBBER & MISC. PLASTIC PRODUCTS (0.76%)
Adidas AG ........................... 760 84,077
STONE, CLAY, & GLASS PRODUCTS (1.05%)
Owens-Illinois, Inc. (a) ............ 3,750 116,250
TELECOMMUNICATIONS (2.86%)
Ameritech Corporation ............... 400 27,175
BellSouth Corporation ............... 800 37,100
GTE Corporation ..................... 500 21,938
Nippon Telegraph & Telephone Corp. . 6 57,622
Telecom Italia Mobile SpA ............ 42,000 134,861
U S West Communications Group ......... 1,000 37,688
TEXTILE MILL PRODUCTS (0.32%)
Toray Industries, Inc. ............... 5,000 35,664
TRUCKING & WAREHOUSING (1.17%)
Caliber System, Inc. .................. 800 29,800
Nippon Express Co., Ltd. ............ 7,000 55,919
USFreightways Corporation ............ 850 21,994
Werner Enterprises, Inc. ............ 1,150 22,281
NUMBER OF MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE DURABLE GOODS (1.00%)
Canon Sales Co. ..................... 2,200 $ 51,283
Itochu Corporation .................. 11,000 59,254
-------------
Total Common Stocks
(cost: $ 6,320,160)......................................7,020,706
-------------
Total Investment Securities
(cost: $ 9,884,263)...................................$ 10,613,822
=============
SUMMARY
Investments at market value ......... 95.89% $ 10,613,822
Other Assets in
Excess of Liabilities ............... 4.11% 454,814
------- -------------
Net Assets ........................... 100.00% $ 11,068,636
======= =============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET
VALUE PERCENTAGE
-------------- -----------
<S> <C> <C>
Denmark ............ $ 494,669 4.47%
Germany ............ 660,140 5.96%
Italy ............... 484,441 4.38%
Japan ............... 1,892,596 17.10%
United States ...... 7,536,790 68.09%
------------- -------
Net Assets ......... $ 11,068,636 100.00%
============= =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
56
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
PREFERRED STOCKS (B)
MEDICAL INSTRUMENTS & SUPPLIES (B)
Fresenius National Medical Care (a) . 4,500 $ 259
-----------
Total Preferred Stocks
(cost: $ 624) .......................................... 259
-----------
COMMON STOCKS (84.32%)
AEROSPACE (4.00%)
Boeing Company .............................. 62,200 3,300,488
Sundstrand Corporation ..................... 23,550 1,271,700
AIR TRANSPORTATION (1.86%)
AMR Corporation (a) ........................ 11,000 1,017,500
Delta Air Lines, Inc. ........................ 13,500 1,107,000
AUTOMOTIVE (2.11%)
General Motors Corporation .................. 43,500 2,422,406
CHEMICALS & ALLIED PRODUCTS (4.59%)
Air Products and Chemicals, Inc. ............ 15,800 1,283,750
E.I. du Pont de Nemours and
Company ................................. 8,400 528,150
IMC Global, Inc. ........................... 40,700 1,424,500
W.R. Grace & Company ........................ 36,500 2,012,063
COMMERCIAL BANKS (8.23%)
Bank of New York Company, Inc. ............... 49,000 2,131,500
Chase Manhattan Corporation .................. 24,200 2,348,913
National City Corporation .................. 46,600 2,446,500
Norwest Corporation ........................ 44,200 2,486,250
COMMUNICATION (2.06%)
U S West, Inc. (a) ........................... 116,600 2,361,150
COMPUTER & DATA PROCESSING SERVICE (1.48%)
Ceridian Corporation (a) ..................... 40,000 1,690,000
CONSTRUCTION (0.42%)
Foster Wheeler Corporation .................. 11,800 477,900
DEPARTMENT STORES (2.16%)
Federated Department Stores, Inc. (a) . 71,000 2,467,250
ELECTRONIC COMPONENTS & ACCESSORIES (1.56%)
Texas Instruments, Inc. ..................... 21,300 1,790,531
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.07%)
Emerson Electric Company ..................... 34,600 1,905,163
General Electric Company ..................... 17,800 1,163,675
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (CONTINUED)
Maytag Corporation ........................... 15,000 $ 391,875
-----------
Thomas & Betts Corporation .................. 22,800 1,198,425
ENGINEERING & MANAGEMENT SERVICES (1.00%)
Halliburton Company ........................ 14,500 1,149,125
FABRICATED METAL PRODUCTS (1.42%)
Cooper Industries, Inc. ..................... 32,700 1,626,825
FORESTRY (0.25%)
Weyerhaeuser Company ........................ 5,600 291,200
HEALTH SERVICES (2.06%)
Columbia/HCA Healthcare
Corporation .............................. 59,900 2,354,819
INDUSTRIAL MACHINERY & EQUIPMENT (11.94%)
BW/IP, Inc. ................................. 10,000 203,125
Case Corporation ........................... 26,000 1,790,750
Caterpillar Inc. ........................... 24,000 2,577,000
Deere & Company .............................. 70,450 3,865,944
Harnischfeger Industries, Inc. ............... 20,000 830,000
Ingersoll-Rand Company ..................... 31,000 1,914,250
Kennametal, Inc. ........................... 12,300 528,900
United Technologies Corporation ............ 11,200 929,600
York International Corporation ............... 22,300 1,025,800
INSTRUMENTS & RELATED PRODUCTS (1.24%)
Xerox Corporation ........................... 18,000 1,419,750
INSURANCE (6.32%)
Allstate Corporation ........................ 23,400 1,708,200
American International Group, Inc. ......... 12,200 1,822,375
Loews Corporation ........................... 37,000 3,704,625
MACHINERY, EQUIPMENT & SUPPLIES (2.49%)
W.W. Grainger, Inc. ........................ 36,500 2,853,844
METAL MINING (2.85%)
Newmont Mining Corporation .................. 40,000 1,560,000
Placer Dome, Inc. ........................... 103,600 1,696,450
MOTION PICTURES (1.98%)
Time Warner, Inc. ........................... 47,000 2,267,750
MOTOR VEHICLES, PARTS & SUPPLIES (0.55%)
Exide Corporation ........................... 28,500 625,219
OIL & GAS EXTRACTION (8.07%)
Dresser Industries, Inc. ..................... 39,200 1,460,200
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
57
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
ENSCO International,
Incorporated (a) ............... 14,600 $ 770,150
Noble Affiliates, Inc. ............ 32,500 1,257,344
Noble Drilling Corporation (a) ...... 57,600 1,299,600
Reading & Bates Corporation (a) ... 51,100 1,366,925
Transocean Offshore, Inc. ......... 19,900 1,445,238
United Meridian Corporation (a) ... 54,500 1,635,000
PAPER & ALLIED PRODUCTS (1.17%)
Champion International Corporation 24,300 1,342,575
PERSONAL CREDIT INSTITUTIONS (0.79%)
Household International, Inc. ...... 7,650 898,397
PETROLEUM REFINING (0.94%)
Coastal Corporation ............... 20,300 1,079,706
PRIMARY METAL INDUSTRIES (2.84%)
Alumax, Inc. (a) .................. 62,600 2,374,883
Reynolds Metals Company ............ 7,900 562,875
USX-US Steel Group, Inc. ......... 9,000 315,563
RAILROADS (1.12%)
Burlington Northern Santa Fe ...... 14,200 1,276,225
SECURITY & COMMODITY BROKERS (0.83%)
Bear Stearns Companies, Inc. ...... 27,750 948,703
TRANSPORTATION EQUIPMENT (0.31%)
Halter Marine Group, Inc. (a) ...... 3,062 73,498
Trinity Industries, Inc. ............ 8,800 279,400
WATER TRANSPORTATION (1.42%)
Tidewater, Inc. ..................... 36,900 1,623,600
WHOLESALE TRADE NONDURABLE GOODS (2.19%)
Unilever NV and Plc ............... 11,500 2,507,000
------------
Total Common Stocks
(cost: $ 83,339,314)........................... 96,489,122
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------------- -----------------
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (4.34%)
U. S. Treasury Bill
5.17%, due 08/21/97 ......... $ 5,000,000 $ 4,963,343
-------------
Total Short-Term U.S. Government
Obligation
(cost: $ 4,963,343).............................. 4,963,343
-------------
SHORT-TERM OBLIGATION (15.00%)
Investors Bank & Trust Company (c)
5.51%, Repurchase
Agreement dated 6/30/97
to be repurchased at
$ 17,165,196 on 7/1/97 ......... 17,162,569 17,162,569
-------------
Total Short-Term Obligation
(cost: $ 17,162,569) ........................... 17,162,569
-------------
Total Investment Securities
(cost: $ 105,465,850) ........................... $ 118,615,293
=============
SUMMARY
Investments at market value ... 103.66% $ 118,615,293
Other Liabilities in
Excess of Assets ............ (3.66%) (4,185,068)
-------------- -------------
Net Assets ..................... 100.00% $ 114,430,225
============== =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Percentage is less than .01%.
(c) Collateralized by $ 5,132,279 Small Business Administration Pool 6.63% due
02/25/20; $ 4,000,000 Small Business Administration Pool 8.38% due
03/25/22; $ 285,000 Small Business Administration Pool 8.51% due
3/25/22; $ 9,050,000 Structured Asset Securities Corporation 6.55% due
12/20/21; market value and accrued interest aggregated $ 4,695,066,
$ 3,991,933, $ 284,717, $ 9,050,000 respectively for this collateral at
June 30, 1997.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
58
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ----------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (0.04%)
COMMERCIAL BANKS (0.04%)
Bank of Portugal ..................... 65 $ 4,453
---------
Total Convertible Preferred Stock
(cost: $ 4,412) ................................. 4,453
---------
PREFERRED STOCKS (0.83%)
MEDICAL INSTRUMENTS & SUPPLIES (0.22%)
Fresenius Medical Care AG (a) ...... 369 26,481
TELECOMMUNICATIONS (0.61%)
Telecomunicacoes de Sao
Paulo S/A-Telesp .................. 226,448 73,414
---------
Total Preferred Stocks
(cost: $ 95,462)................................. 99,895
---------
COMMON STOCKS (89.64%)
AEROSPACE (0.86%)
Bombardier, Inc. - Class B ......... 2,404 54,543
British Aerospace Plc ............... 2,174 48,392
AMUSEMENT & RECREATION SERVICES (2.86%)
Airtours Plc ........................ 5,996 115,742
EMI Group Plc ........................ 1,511 27,116
Granada Group Plc .................. 9,004 118,470
PolyGram NV ........................ 1,318 69,121
Thorn Plc ........................... 4,531 12,829
APPAREL PRODUCTS (0.28%)
Giordano International, Ltd ......... 38,000 25,998
Gucci Group nv-New York
Registered Share .................. 115 7,403
AUTOMOTIVE (2.47%)
Honda Motor Company, Ltd. ............ 7,000 210,843
Tata Engineering & Locomotive
Company, Limited - Sponsored
GDR 144A (a) (b) .................. 388 5,956
Tata Engineering & Locomotive
Company, Limited 144A (b) ......... 450 6,908
Qingling Motors Company ............ 20,000 10,327
Volkswagen AG ........................ 82 62,842
BEER, WINE, & DISTILLED BEVERAGES (1.37%)
Guinness Plc ........................ 4,100 40,152
San Miguel Corporation - Class B ... 12,600 33,233
Sapporo Breweries, Ltd. ............ 11,000 91,427
NUMBER OF MARKET
SHARES VALUE
----------- ----------
COMMON STOCKS (CONTINUED)
BEVERAGES (0.76%)
Coca-Cola Amatil, Ltd. ............... 3,262 $ 42,366
Panamerican Beverages, Inc. -
Class A ........................... 1,475 48,491
BUSINESS CREDIT INSTITUTIONS (0.19%)
Promise Company, Ltd. ............... 400 22,909
BUSINESS SERVICES (0.26%)
Berjaya Sports Toto Bhd ............ 3,000 14,147
Hutchison Whampoa, Limited (a) ...... 2,000 17,297
CHEMICALS & ALLIED PRODUCTS (2.31%)
BASF AG .............................. 2,470 91,248
Croda International Plc ............ 4,900 21,504
SGL Carbon AG ........................ 622 85,139
Shin-Etsu Chemical Co., Ltd. ......... 3,000 79,623
COMMERCIAL BANKS (8.55%)
ABN Amro Holding N.V. ............... 1,400 26,090
Alpha Credit Bank .................. 343 23,335
Banco Bilbao Vizcaya, SA ............ 810 65,800
Banco Comercial Portugues, SA ...... 2,187 41,297
Banco Comercial Portugues, SA -
Sponsored ADR ..................... 716 13,336
Banco Santander, SA .................. 1,608 49,544
Commerzbank AG ..................... 2,454 69,487
Den Danske Bank ..................... 851 82,768
Dresdner Bank AG ..................... 593 20,496
Fuji Bank, Ltd. ..................... 4,000 60,066
Generale de Banque SA ............... 141 54,258
Grupo Financiero Bancomer -
Sponsored ADR (a) (b) ............ 1,344 12,976
HSBC Holdings Plc .................. 3,600 108,277
Ing Groep N.V. ..................... 1,983 91,376
Investor AB - Class B ............... 217 11,430
Kookmin Bank - Sponsored
GDR (a) (b) ..................... 94 2,045
Merita, Ltd. - Class A ............... 6,125 20,057
Metropolitan Bank & Trust Company . 1,500 31,879
National Australia Bank, Ltd. ...... 1,100 15,757
PT Bank Dagang Nasional Indonesia . 20,000 14,192
Sanwa Bank, Ltd. ..................... 5,000 74,210
Sumitomo Bank, Ltd .................. 5,000 82,067
Thai Farmers Bank Public
Company, Ltd. ..................... 1,000 4,462
Union Bank of Switzerland ............ 46 52,591
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
59
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMMUNICATION (1.42%)
DDI Corporation ........................... 12 $ 88,633
Reed International Plc .................. 6,669 64,644
Reuters Holdings Plc ..................... 1,600 16,868
COMMUNICATIONS EQUIPMENT (1.27%)
Alcatel Alsthom ........................... 514 64,341
ECI Telecommunications, Ltd. ............ 2,975 88,506
COMPUTER & DATA PROCESSING SERVICE (1.79%)
Baan Company, N.V. (a) .................. 1,395 94,468
Cap Gemini SA ........................... 249 13,128
Dimension Data Holdings, Ltd. (a) ......... 7,414 29,424
NTT Data Corporation ..................... 20 77,353
COMPUTER & OFFICE EQUIPMENT (0.13%)
Acer Incorporation- GDR (a) ............... 900 16,187
CONSTRUCTION (0.03%)
Hi Cement Corporation .................. 20,000 3,795
DEPARTMENT STORES (0.83%)
Credit Saison Co., Ltd. .................. 4,100 100,227
ELECTRIC, GAS, & SANITARY SERVICES (5.34%)
BSES, Ltd. 144A- GDR Reg S (a) ............ 491 13,012
China Light & Power Company, Ltd. ......... 3,000 17,001
Edison S.p.A. ........................... 5,065 25,066
Electricas Reunidas De
Zaragoza, S.A. ........................ 997 41,815
Electricidade de Portugal, S.A. ......... 482 6,245
Energie-Versorgung
Niederoesterreich AG .................. 283 36,476
Korea Electric Power Corporation -
Sponsored ADR ........................ 2,528 47,242
National Grid Group Plc (a) ............... 4,400 16,085
National Power Plc ........................ 2,500 21,735
Osaka Gas Company ........................ 24,000 68,937
Severn Trent Plc ........................ 1,500 19,424
Siemens AG .............................. 1,343 79,713
Sumitomo Electric Industries ............ 5,000 83,814
Tenaga Nasional Bhd ..................... 2,000 9,748
VEBA AG ................................. 2,745 154,196
ELECTRONIC COMPONENTS & ACCESSORIES (1.51%)
ABB AG (a) .............................. 83 125,577
Dixons Group Plc ........................ 1,470 11,421
Electrocomponents Plc ..................... 3,994 29,834
General Electric Company Plc ............ 1,800 10,762
Sensonor ASA (a) ........................ 735 3,961
NUMBER OF MARKET
SHARES VALUE
----------- -----------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (7.50%)
Canon, Inc. .............................. 5,000 $ 136,197
Hitachi Maxell ........................... 4,000 99,179
Matsushita Electric Industrial
Company, Ltd. (a) ..................... 6,000 121,006
Moulinex (a) .............................. 1,763 48,276
Murata Manufacturing Co., Ltd. ............ 2,000 78,924
NEC Corporation ........................... 5,000 69,845
Philips Electronics N.V. .................. 1,446 103,517
Rohm Company .............................. 1,000 101,275
Sony Corporation ........................ 1,300 113,384
Uniden Corporation ........................ 2,000 29,509
ENGINEERING & MANAGEMENT SERVICES (3.25%)
Autoliv AB .............................. 1,277 48,940
Autoliv, Inc. (a) ........................ 1,100 42,299
Electrolux AB - Series B .................. 684 49,333
Hoganas AB - Class B ..................... 1,930 64,237
LucasVarity Plc (a) ..................... 13,956 48,347
Metra Oy - Class B ........................ 122 3,678
VA Technologie AG ........................ 585 107,100
Valmet Corporation ........................ 1,480 25,629
ENVIRONMENTAL SERVICES (0.52%)
Compagnie Genarale des Eaux-
Warrants .............................. 489 293
Compagnie Generale des Eaux ............... 489 62,625
FINANCE (0.35%)
Lloyds TSB Group Plc ..................... 4,147 42,546
FOOD STORES (2.45%)
Carrefour, SA (a) ........................ 160 116,142
Danisco A/S .............................. 400 24,450
Nestle SA ................................. 52 68,564
Promodes ................................. 105 40,877
Tesco Plc ................................. 7,100 43,694
FOOD & KINDRED PRODUCTS (1.41%)
Burns, Philp & Company, Ltd. ............ 38,017 70,618
Cultor Oy ................................. 564 29,876
Devro PLC ................................. 6,762 38,291
Gruma SA - Class B (a) .................. 3,711 17,288
Nippon Meat Packers, Inc. ............... 1,000 12,921
FURNITURE & HOME FURNISHINGS (0.07%)
Industrie Natuzzi SpA -
Sponsored ADR ........................ 344 8,815
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
60
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
GAS PRODUCTION & DISTRIBUTION (0.24%)
BG Plc ................................. 7,680 $ 28,268
HOLDING & OTHER INVESTMENT OFFICES (1.33%)
AMMB Holdings Bhd ........................ 800 4,977
BTR Plc ................................. 10,360 35,458
Colonial, Ltd. (a) ..................... 2,038 5,201
Grupo Carso SA de CV-Sponsored
ADR ................................. 2,687 37,360
Kinnevik AB - Class B .................. 674 18,774
Lai Sun Development Company, Ltd. . 15,000 16,846
Mitsubishi Corp. ........................ 3,000 37,454
Shenzhen Expressway Co. (a) ............ 12,000 3,292
HOTELS & OTHER LODGING PLACES (0.15%)
Hongkong & Shanghai Hotels, Ltd. ......... 11,000 17,536
Lai Sun Hotel Intl., Ltd.- Warrants ...... 602 53
INDUSTRIAL MACHINERY & EQUIPMENT (2.60%)
Blue Circle Industries Plc ............... 3,990 28,442
Coflexip SA - Sponsored ADR ............ 1,284 38,681
Hitachi Construction Machinery
Co., Ltd. ........................... 4,000 38,764
Holderbank Financiere Glarus AG -
Class B .............................. 29 27,378
Siam Cement Public Company, Ltd. ......... 100 1,817
Siebe Plc .............................. 6,744 114,231
Toda Construction Company ............... 9,000 63,017
INSURANCE (0.88%)
AXA-UAP ................................. 616 38,292
General Accident Plc ..................... 1,600 23,370
Schweizerische Rueckversicherungs-
Gesellschaft ........................ 31 43,825
INSURANCE AGENTS, BROKERS & SERVICE (0.65%)
Pohjola Insurance Group - Class B ...... 278 8,247
Sampo Insurance Company, Ltd. -
Class A .............................. 138 13,424
Zurich Versicherungsgesellschaft ......... 141 56,083
IRON & STEEL FOUNDRIES (0.84%)
Usinor Sacilor ........................... 5,565 100,327
LIFE INSURANCE (0.24%)
Prudential Corporation Plc ............... 2,950 28,570
NUMBER OF MARKET
SHARES VALUE
----------- ----------
COMMON STOCKS (CONTINUED)
MACHINERY, EQUIPMENT & SUPPLIES (2.21%)
Amada Company, Ltd. ..................... 2,000 $ 17,636
Mannesmann AG ........................... 389 173,251
Schneider SA ........................... 1,391 74,001
MANAGEMENT SERVICES (0.36%)
Cordiant Plc (a) ........................ 20,815 42,814
MANUFACTURING INDUSTRIES (1.82%)
Elec & Eltek International
Company, Ltd. ........................ 3,000 16,800
F.H. Faulding & Co., Ltd. ............... 1,948 11,179
Johnson Electric Holdings, Ltd. ......... 5,000 14,909
Oerlikon-Buehrle Holding AG ............ 733 85,810
Sulzer AG .............................. 105 89,854
MEDICAL INSTRUMENTS & SUPPLIES (0.23%)
Fresenius Medical Care AG (a) ............ 306 27,011
MINING (0.37%)
Banpu Public Company, Ltd. ............... 800 12,268
Broken Hill Proprietary
Company, Ltd. ........................ 690 10,151
PT Tambang Timah - GDR
Reg S (a) (b) ........................ 288 4,471
PT Tambang Timah - Sponsored
GDR (a) (b) ........................... 235 3,648
WMC, Limited ........................... 2,200 13,871
MOTOR VEHICLES, PARTS & SUPPLIES (1.72%)
PT Astra International .................. 20,000 82,271
Valeo SA ................................. 2,004 124,404
OIL & GAS EXTRACTION (3.42%)
ENI SPA ................................. 3,531 19,928
OMV AG ................................. 234 29,987
Repsol S.A. .............................. 1,711 72,342
Saga Petroleum ASA-A shares ............ 442 8,383
Saipem S.p.A. ........................... 7,948 40,646
Shell Transport & Trading Company ...... 2,668 55,587
Total SA - Class B ..................... 1,813 183,159
PAPER & ALLIED PRODUCTS (0.07%)
Arjo Wiggins Appleton Plc ............... 2,700 7,914
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
61
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PERSONAL SERVICES (0.23%)
Hays Plc .............................. 2,864 $ 27,237
PETROLEUM & COAL PRODUCTS (0.74%)
Elf Aquitaine SA ........................ 433 46,690
Perez Companc S.A. ..................... 5,342 42,636
PHARMACEUTICALS (5.50%)
Astra AB - Class B ..................... 208 3,670
BOC Group Plc ........................... 750 13,053
Gehe AG ................................. 982 66,983
Glaxo Wellcome Plc ..................... 1,800 37,174
Medeva Plc .............................. 20,714 88,663
Novartis AG ........................... 177 282,822
Novartis AG- Bearer ..................... 7 11,175
Roche Holding AG ..................... 13 117,522
Zeneca Group Plc (a) .................. 1,200 39,692
PRIMARY METAL INDUSTRIES (1.74%)
Controladora Comercial Mexicana SA
de CV-GDR ........................... 3,875 71,688
Iscor Limited ........................... 61,381 40,600
Sumitomo Metal Industries ............... 7,000 19,923
Tokyo Steel Mfg. ........................ 1,600 17,880
Tubos De Acero de Mexico SA -
Sponsored ADR (a) .................. 3,180 58,631
PRINTING & PUBLISHING (1.39%)
Elsevier NV ........................... 3,348 55,914
Reed International Plc .................. 5,004 48,505
United News & Media Plc ............... 1,300 15,080
Verenigde Nederlandse
Utigeversbedrijvan Verenigd Bezit 1,154 25,501
Wolters Kluwer NV-CVA .................. 184 22,391
RADIO & TELEVISION BROADCASTING (0.22%)
Television Broadcasts, Ltd. ............ 6,000 26,953
RAILROADS (1.34%)
East Japan Railway Co. .................. 15 77,004
Railtrack Group Plc .................. 8,089 84,269
REAL ESTATE (1.67%)
British Land Company Plc ............... 4,500 42,420
Cheung Kong Holdings, Ltd. ............ 5,000 49,375
China Resources Enterprise, Ltd. ...... 4,000 19,621
DBS Land, Ltd. ........................ 8,910 28,179
New World Development
Company, Ltd. ........................ 3,000 17,891
Sino Land Company ..................... 15,000 16,265
Sumitomo Realty & Development ......... 3,000 26,454
NUMBER OF MARKET
SHARES VALUE
----------- ----------
COMMON STOCKS (CONTINUED)
RESIDENTIAL BUILDING CONSTRUCTION (0.63%)
Berkeley Group Plc ..................... 1,800 $ 20,701
Lyonnaise des Eaux SA .................. 546 54,974
RESTAURANTS (0.30%)
Compass Group Plc ..................... 1,385 15,536
Whitbread Plc ........................... 1,600 20,146
RETAIL TRADE (1.70%)
D.F.S. Furniture Company Plc ............ 5,011 46,904
Marui Co. .............................. 2,000 37,192
Mycal Corp. ........................... 4,000 57,622
Vendex International N.V. ............... 1,132 61,960
RUBBER & MISC. PLASTIC PRODUCTS (1.44%)
Adidas AG .............................. 828 91,599
Michelin - Class B ..................... 680 40,814
Sumitomo Rubber Industries ............ 6,000 40,388
STONE, CLAY, & GLASS PRODUCTS (0.36%)
Asahi Glass Company, Ltd. ............... 2,000 19,906
BPB Plc ................................. 1,600 8,607
PT Mulia Industrindo .................. 28,000 14,686
TELECOMMUNICATIONS (4.66%)
British Telecommunications Plc ......... 6,777 50,340
NetCom Systems AB - Class B (a) ......... 1,233 17,531
Nippon Telegraph & Telephone Corp. . 8 76,829
Oy Nokia AB - Class A .................. 623 47,042
Stet Societa' Finanziaria
Telefonica SpA ..................... 14,200 49,090
Tele Danmark A/S - Class B ............ 83 4,311
Telecom De Sao Paulo- Rights ............ 6,523 0
Telecom Italia Mobile SpA ............... 31,877 102,357
Telecom Italia Mobile SpA -
Class NC ........................... 30,393 53,822
Telecomunicacoes Brasileiras S/A -
Telebras ........................... 360,000 48,762
Telefonaktiebolaget LM Ericsson -
Class B .............................. 458 18,027
Telefonica Del Peru S.A.-ADR (a) ...... 2,556 66,935
Telekom Malaysia Bhd .................. 3,000 14,028
Videsh Sanchar Nigam LTD-GDR (a) . 500 10,375
TEXTILE MILL PRODUCTS (0.36%)
Toray Industries, Inc. .................. 6,000 42,798
TRANSPORTATION EQUIPMENT (0.68%)
Ishikawajima-Harima Heavy
Industries Co., Ltd. ............... 8,000 31,431
Suzuki Motor Corporation ............... 4,000 50,638
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
62
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
---------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION & PUBLIC UTILITIES (1.17%)
Brambles Industries, Ltd. 4,768 $ 94,297
BAA Plc .................. 5,050 46,555
WATER TRANSPORTATION (0.60%)
IHC Caland N.V. ............ 1,319 72,062
-------------
Total Common Stocks
(cost: $ 9,928,535) .................. 10,761,243
-------------
Total Investment Securities
(cost: $ 10,028,409).................. $ 10,865,591
=============
SUMMARY
Investments at market value 90.51% $ 10,865,591
Other Assets in
Excess of Liabilities ... 9.49% 1,138,982
------- -------------
Net Assets ............... 100.00% $ 12,004,573
======= =============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET VALUE PERCENTAGE
-------------- -----------
<S> <C> <C>
Argentina ............ $ 42,636 0.36%
Australia ............ 241,356 2.01%
Austria ............ 156,808 1.31%
Belgium ............ 54,258 0.45%
Brazil ............... 112,871 0.94%
Canada ............... 47,698 0.40%
Denmark ............ 100,164 0.83%
Finland ............ 127,143 1.06%
France ............... 928,606 7.74%
Germany ............ 886,462 7.38%
Greece ............... 17,474 0.15%
Hong Kong ............ 361,641 3.01%
Indonesia ............ 96,747 0.81%
Italy ............... 272,383 2.27%
Japan ............... 2,345,740 19.54%
Malaysia ............ 42,901 0.36%
Mexico ............... 14,433 0.12%
Netherlands ......... 586,816 4.89%
Norway ............... 11,582 0.10%
Philippines ......... 53,634 0.45%
Portugal ............ 47,542 0.40%
Singapore ............ 28,179 0.23%
South Africa ......... 69,324 0.58%
Spain ............... 210,892 1.76%
Sweden ............... 250,629 2.09%
Switzerland ......... 891,209 7.42%
Thailand ............ 18,518 0.15%
United Kingdom ...... 1,642,985 13.69%
United States ...... 2,343,942 19.50%
------------- -------
Net Assets ......... $ 12,004,573 100.00%
============= =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
ADR American Depositary Receipt
GDR Global Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
63
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
<S> <C> <C>
CONVERTIBLE BONDS (0.10%)
AIR TRANSPORTATION (0.07%)
Continental Airlines, Inc.
6.75%, due 04/15/06 $ 10,000 $ 13,013
INSURANCE (0.03%)
Berkshire Hathaway Inc. 6,000 6,202
---------
Total Convertible Bonds
(cost: $ 18,983) .................. 19,215
---------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- -----------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (0.43%)
COMPUTER & DATA PROCESSING SERVICE (0.39%)
Microsoft Corporation ............... 860 $ 74,820
TELECOMMUNICATIONS (0.04%)
Airtouch Communications,
Inc. - Series B .................. 253 7,210
----------
Total Convertible Preferred Stocks
(cost: $ 80,864) ................................. 82,030
----------
COMMON STOCKS (90.45%)
AEROSPACE (1.92%)
Allied Signal Inc. .................. 3,702 310,968
Boeing Company ........................ 466 24,727
Bombardier, Inc. - Class B ............ 164 3,712
McDonnell Douglas Corporation ......... 424 29,044
AIR TRANSPORTATION (0.28%)
Continental Airlines, Inc. -
Class B (a) ........................ 1,009 35,252
Delta Air Lines, Inc. ............... 231 18,942
AUTOMOTIVE (0.68%)
Autoliv, Inc. (a) ..................... 478 18,702
Ford Motor Company .................. 1,885 71,159
General Motors Corporation ............ 598 33,301
ITT Industries Inc. .................. 255 6,566
BEVERAGES (0.90%)
Anheuser-Busch Companies, Inc. ...... 3,888 163,053
Coca-Cola Company ..................... 136 9,180
BUSINESS SERVICES (2.15%)
Catalina Marketing Corporation (a) ... 356 17,133
CUC International, Inc. (a) ......... 1,055 27,232
NUMBER OF MARKET
SHARES VALUE
----------- -----------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Equifax, Inc. ........................ 5,139 $ 191,107
Interpublic Group of
Companies, Inc. .................. 1,500 91,969
Metromedia International
Group, Inc. (a) .................. 369 4,659
Pitney Bowes, Inc. .................. 986 68,527
Viad Corp ........................... 617 11,877
CHEMICALS & ALLIED PRODUCTS (4.94%)
Air Products & Chemicals, Inc. ...... 642 52,163
Airgas, Inc. (a) ..................... 1,178 23,339
Avery-Dennison Corporation ............ 384 15,408
Avon Products, Inc. .................. 921 64,988
Colgate-Palmolive Company ............ 1,572 102,573
Eastman Chemical Company ............ 278 17,653
E.I. du Pont de Nemours
and Company ........................ 4,740 298,028
Gillette Company ..................... 329 31,173
IMC Global, Inc. ..................... 582 20,370
International Flavors &
Fragrances, Inc. .................. 387 19,544
Morton International, Inc. (a) ...... 2,410 72,752
PPG Industries, Inc. .................. 151 8,777
Procter & Gamble Company ............ 1,567 221,339
COMMERCIAL BANKS (5.50%)
Bank of New York Company, Inc. ...... 1,088 47,328
BankAmerica Corporation ............... 1,186 76,571
BankBoston Corporation ............... 924 66,586
Bankers Trust New York Corporation . 192 16,704
Barnett Banks, Inc. .................. 247 12,968
Chase Manhattan Corporation ......... 1,008 97,839
Citicorp .............................. 2,456 296,102
ING Groep N.V. ........................ 392 18,063
ING Groep N.V.- ADR .................. 291 13,495
J. P. Morgan & Company
Incorporated ..................... 603 62,938
Mellon Bank Corporation ............... 1,294 58,392
Norwest Corporation .................. 164 9,225
Provident Companies, Inc. ............ 1,534 82,069
State Street Corporation ............ 1,151 53,234
U.S. Bancorp ........................ 479 30,716
Wells Fargo & Company ............... 424 114,268
COMMUNICATION (0.76%)
Comcast Corporation - Class A ......... 2,605 55,682
Comcast UK Cable Partners
Limited (a) ..................... 712 8,544
NTL Incorporated (a) .................. 3,273 81,416
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
64
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (0.38%)
DSC Communications
Corporation (a) ........................ 397 $ 8,833
Lucent Technologies, Inc. ............... 467 33,653
Northern Telecom Limited .................. 329 29,939
COMPUTER & DATA PROCESSING SERVICES (2.71%)
Automatic Data Processing, Inc. ......... 2,315 108,805
Computer Associates
International, Inc. .................. 1,302 72,505
Electronic Data Systems Corporation . 493 20,213
First Data Corporation .................. 6,108 268,370
Intuit, Inc. (a) ........................ 272 6,239
Microsoft Corporation (a) ............... 356 44,990
COMPUTER & OFFICE EQUIPMENT (3.07%)
3Com Corporation (a) ..................... 233 10,485
Cisco Systems, Inc. (a) .................. 945 63,433
Hewlett-Packard Company .................. 3,651 204,456
International Business Machines
Corporation ........................... 2,952 266,234
Minnesota Mining & Manufacturing
Company .............................. 356 36,312
Storage Technology Corporation (a) ...... 199 8,856
DEPARTMENT STORES (2.52%)
Dayton Hudson Corporation ............... 1,260 67,016
Federated Department
Stores, Inc. (a) ..................... 1,315 45,696
J.C. Penney Company, Inc. ............... 301 15,708
Sears Roebuck and Company ............... 2,537 136,364
Wal-Mart Stores, Inc. ..................... 6,504 219,917
DRUG STORES & PROPRIETARY STORES (0.17%)
Arbor Drugs, Inc. ........................ 1,612 32,442
ELECTRIC SERVICES (1.32%)
American Electric Power Company ......... 1,083 45,486
CMS Energy Corporation .................. 411 14,488
Duke Power Company ........................ 1,151 55,176
Florida Progress Corporation ............ 822 25,739
FPL Group, Inc. ........................... 737 33,948
PacifiCorp .............................. 1,507 33,154
Pinnacle West Capital Corporation ......... 329 9,891
Public Service Company of Colorado . 509 21,124
Southern Company ........................ 685 14,984
ELECTRICAL GOODS (0.95%)
Hubbell, Inc. - Class B .................. 4,169 183,436
NUMBER OF MARKET
SHARES VALUE
----------- ----------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (2.19%)
AMP, Inc. ................................. 782 $ 32,649
Intel Corporation ........................ 2,515 356,658
Molex Inc. - Class A ..................... 873 30,446
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.57%)
Emerson Electric Company .................. 4,659 256,536
Harman International Industries, Inc. . 521 21,947
National Service Industries, Inc. ......... 486 23,662
ENGINEERING & MANAGEMENT SERVICES (0.18%)
Halliburton Company ..................... 428 33,919
ENVIRONMENTAL SERVICES (0.57%)
Browning-Ferris Industries, Inc. ......... 1,283 42,660
United Waste Systems, Inc. (a) ............ 274 11,234
Waste Management Inc. ..................... 1,507 48,412
Wheelabrator Technologies, Inc. ......... 463 7,148
FABRICATED METAL PRODUCTS (0.13%)
Masco Corporation ........................ 192 8,016
Parker-Hannifin Corporation ............... 274 16,628
FINANCE (1.65%)
Fannie Mae .............................. 7,288 317,938
FOOD STORES (0.35%)
American Stores Company .................. 694 34,266
Nestle SA ................................. 25 32,964
FOOD & KINDRED PRODUCTS (1.63%)
Archer- Daniels- Midland Co. ............ 1,397 32,830
ConAgra, Inc. ........................... 914 58,610
CPC International, Inc. .................. 973 89,820
General Mills, Inc. ..................... 726 47,281
Kellogg Company ........................... 219 18,752
Ralston-Ralston Purina Group ............ 607 49,888
Sysco Corporation ........................ 438 15,987
FORESTRY (0.50%)
Rayonier, Inc. ........................... 658 27,677
Weyerhaeuser Company ..................... 1,322 68,744
GAS PRODUCTION & DISTRIBUTION (0.31%)
El Paso Natural Gas Company ............... 329 18,095
Sonat, Inc. .............................. 795 40,744
HEALTH SERVICES (0.23%)
Columbia/HCA Healthcare
Corporation ........................... 83 3,263
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
65
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH SERVICES (CONTINUED)
Lincare Holdings, Inc. (a) ............ 617 $ 26,531
Sun Healthcare Group, Inc. (a) ......... 178 3,705
Tenet Healthcare Corporation (a) ...... 370 10,938
HOLDING & OTHER INVESTMENT OFFICES (0.04%)
Trizec Hahn Corporation ............... 370 7,909
HOTELS & OTHER LODGING PLACES (0.22%)
Circus Circus Enterprises (a) ......... 1,740 42,848
INDUSTRIAL MACHINERY & EQUIPMENT (3.71%)
Applied Materials, Inc. (a) ............ 750 53,109
Baker Hughes, Inc. ..................... 2,021 78,187
Deere & Company ........................ 2,039 111,890
Dover Corporation ..................... 4,028 247,722
Harnischfeger Industries, Inc. ......... 274 11,371
Timken Company ........................ 711 25,285
United Technologies Corporation ......... 1,655 137,365
U.S. Filter Corporation (a) ............ 245 6,676
Varian Associates, Inc. ............... 743 40,308
INSTRUMENTS & RELATED PRODUCTS (1.01%)
Allergan, Inc. ........................ 1,534 48,800
Eastman Kodak Company .................. 937 71,915
General Signal Corporation ............ 534 23,296
Xerox Corporation ..................... 630 49,691
INSURANCE (5.79%)
American International Group, Inc. ...... 2,001 298,899
Chubb Corporation ..................... 1,411 94,361
CMAC Investment Corporation ............ 468 22,347
Everest Reinsurance Holdings, Inc. ...... 164 6,499
General Re Corporation .................. 395 71,890
Hartford Financial Services
Group, Inc. ........................ 329 27,225
Loews Corporation ..................... 1,695 169,712
TIG Holdings, Inc. ..................... 1,538 48,063
Travelers Group, Inc. .................. 5,927 373,771
INSURANCE AGENTS, BROKERS & SERVICE (0.59%)
Marsh & McLennan Companies, Inc. . 1,576 112,487
LEATHER & LEATHER PRODUCTS (0.05%)
Nine West Group, Inc. (a) ............... 274 10,463
LIFE INSURANCE (0.78%)
Aegon N.V. - ADR (b) .................. 158 11,070
Equitable Companies, Inc. ............... 219 7,282
Lincoln National Corporation ............ 1,014 65,276
NUMBER OF MARKET
SHARES VALUE
----------- ----------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (CONTINUED)
Providian Corporation (b) ............... 365 $ 11,726
ReliaStar Financial Corporation ...... 397 29,031
UNUM Corporation ........................ 595 24,990
LUMBER & CONSTRUCTION MATERIALS (0.18%)
Martin Marietta Materials, Inc. ......... 1,096 35,483
LUMBER & OTHER BUILDING MATERIALS (0.73%)
Home Depot, Inc. ........................ 1,623 111,886
Lowe's Companies, Inc. .................. 767 28,475
MACHINERY, EQUIPMENT & SUPPLIES (0.47%)
Lockheed Martin Corporation ............ 766 79,329
Mannesmann AG ........................... 23 10,244
MANAGEMENT SERVICES (0.04%)
Dun & Bradstreet Corporation ............ 329 8,636
MANUFACTURING INDUSTRIES (1.81%)
Armstrong World Industries, Inc. ...... 486 35,660
FMC Corporation (a) ..................... 274 21,766
Textron, Inc. ........................... 3,651 242,335
Tyco International Ltd. ............... 296 20,591
Unilever NV and Plc - ADR ............... 123 26,814
MEDICAL INSTRUMENTS & SUPPLIES (0.31%)
Arrow International, Inc. ............... 148 4,329
Baxter International, Inc. ............ 770 40,233
Dentsply International, Inc. ............ 221 10,829
St. Jude Medical, Inc. (a) ............ 116 4,524
METAL MINING (0.53%)
Barrick Gold Corporation ............... 759 16,698
Newmont Mining Corporation ............ 2,176 84,864
MINING (0.14%)
Pittston Brink's Group .................. 466 13,980
Potash Corporation of
Saskatchewan, Inc. .................. 164 12,310
MORTGAGE BANKERS AND BROKERS (0.14%)
Countrywide Credit Industries, Inc. ... 874 27,258
MOTION PICTURES (1.09%)
Time Warner, Inc. ..................... 735 35,464
Walt Disney Company ..................... 2,165 173,741
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
66
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MOTOR VEHICLES, PARTS & SUPPLIES (0.06%)
Federal-Mogul Corporation .................. 315 $ 11,025
OIL & GAS EXTRACTION (3.31%)
Anadarko Petroleum Corporation ............ 536 32,160
Atlantic Richfield Company ............... 1,547 109,064
British Petroleum Company Plc - ADR . 621 46,497
Burlington Resources, Inc. ............... 1,773 78,234
Diamond Offshore Drilling, Inc. (a) ...... 123 9,609
Louisiana Land and Exploration
Company ................................. 272 15,538
Nabors Industries, Inc. (a) ............... 993 24,825
Schlumberger Ltd. ........................ 2,164 270,500
Total SA - ADR ........................... 411 20,807
Union Pacific Resources Group, Inc. . 1,179 29,328
PAINT, GLASS, & WALLPAPER STORES (0.16%)
Sherwin-Williams Company .................. 994 30,690
PAPER & ALLIED PRODUCTS (1.18%)
Kimberly-Clark Corporation ............... 3,603 179,249
Mead Corporation ........................ 766 47,684
PERSONAL CREDIT INSTITUTIONS (1.06%)
American Express Company .................. 2,418 180,141
Beneficial Corporation ..................... 329 23,380
PETROLEUM REFINING (6.49%)
Amoco Corporation ........................ 1,888 164,138
Elf Aquitaine SA - ADR ..................... 233 12,684
Exxon Corporation ........................ 5,622 345,753
Mobil Corporation ........................ 2,384 166,582
Royal Dutch Petroleum Company ............ 1,112 237,551
Tele-Communications, Inc. -
Class A (a) ........................... 2,452 58,235
Texaco Inc. .............................. 1,237 134,524
Tosco Financing Trust ..................... 603 18,052
Unocal Corporation ........................ 2,382 92,451
Valero Energy Corporation .................. 438 15,878
PHARMACEUTICALS (10.82%)
Abbot Laboratories ........................ 3,642 243,104
American Home Products
Corporation ........................... 2,794 213,741
Bristol-Myers Squibb Company ............... 4,436 359,316
Cardinal Health, Inc. ..................... 794 45,457
Eli Lilly & Company ........................ 658 71,928
Forest Laboratories, Inc. (a) ............ 89 3,688
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Merck & Co., Inc. ........................ 2,411 $ 249,539
Pfizer, Inc. .............................. 1,785 213,308
R. P. Scherer Corporation (a) ............ 1,018 52,554
Schering-Plough Corporation ............... 2,644 126,582
SmithKline Beecham Plc - ADR ............... 1,851 169,598
Warner- Lambert Company .................. 82 10,189
Watson Pharmaceutical, Inc. (a) ............ 1,754 74,107
PRINTING & PUBLISHING (0.85%)
Gannett Company, Inc. ..................... 1,333 131,634
Knight-Ridder, Inc. ..................... 356 17,466
Scholastic Corporation (a) ............... 378 13,230
RAILROADS (1.09%)
Burlington Northern Santa Fe ............... 1,137 102,188
Canadian Pacific, Ltd. ..................... 2,000 56,875
Union Pacific Corporation .................. 726 51,183
RESEARCH & TESTING SERVICES (0.17%)
AC Nielsen Corporation (a) ............... 1,668 32,735
RESTAURANTS (1.82%)
International Multifoods Corporation ...... 192 4,824
McDonald's Corporation ..................... 1,676 80,972
PepsiCo, Inc. .............................. 7,032 264,140
RETAIL TRADE (0.59%)
Costco Companies, Inc. (a) ............... 1,151 37,839
OfficeMax, Inc. (a) ........................ 339 4,894
Toys "R" Us, Inc. (a) ..................... 1,997 69,895
RUBBER & MISC. PLASTIC PRODUCTS (0.13%)
Goodyear Tire & Rubber Company ............ 397 25,135
SECURITY & COMMODITY BROKERS (1.80%)
A. G. Edwards Inc. ........................ 416 17,784
Merrill Lynch & Company, Inc. ............ 493 29,395
Morgan Stanley, Dean Witter,
Discover and Co. ........................ 3,288 141,590
Reuters Holdings Plc - ADR ............... 1,956 123,228
Salomon, Inc. .............................. 356 19,803
T. Rowe Price Associates .................. 260 13,423
STONE, CLAY, & GLASS PRODUCTS (0.12%)
Corning Inc. .............................. 411 22,861
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
67
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
(UNAUDITED)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
---------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (3.92%)
360 Communications Company (a) ...... 178 $ 3,047
A T & T Corporation .................. 1,887 66,162
Airtouch Communications, Inc. (a) ... 6,508 178,156
BellSouth Corporation ............... 1,750 81,155
GTE Corporation ..................... 2,425 106,396
MCI Communications Corporation ...... 1,035 39,620
NYNEX Corporation .................. 1,020 58,777
SBC Communications, Inc. ............ 1,817 112,426
Sprint Corporation .................. 274 14,418
Tele-Communications, Inc. -
Series A (a) ..................... 3,075 45,740
Vanguard Cellular Systems, Inc. (a) 493 6,716
WorldCom, Inc. (a) .................. 1,233 39,455
TEXTILE MILL PRODUCTS (0.31%)
Sara Lee Corporation ............... 1,468 61,105
TOBACCO PRODUCTS (1.20%)
Philip Morris Companies, Inc. ...... 5,233 232,213
TRANSPORTATION & PUBLIC UTILITIES (0.04%)
Laidlaw, Inc. - Class B ............ 685 9,461
WATER TRANSPORTATION (0.14%)
Carnival Corporation ............... 644 26,564
WHOLESALE TRADE DURABLE GOODS (1.27%)
Johnson & Johnson .................. 3,801 244,689
-------------
Total Common Stocks
(cost: $ 16,492,006) ........................... 17,374,994
-------------
Total Investment Securities
(cost: $ 16,591,853) ........................... $ 17,476,239
=============
SUMMARY
Investments at market value ......... 90.98% $ 17,476,239
Other Assets in
Excess of Liabilities ............ 9.02% 1,732,905
------- -------------
Net Assets ........................... 100.00% $ 19,209,144
======= =============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF TOTAL PORTFOLIO NET ASSETS.
<TABLE>
<CAPTION>
MARKET VALUE PERCENTAGE
-------------- -----------
<S> <C> <C>
Canada ............ $ 3,712 0.02%
Germany ............ 10,244 0.05%
Netherlands ......... 18,063 0.09%
Switzerland ......... 32,964 0.17%
United States ...... 19,144,161 99.67%
------------- -------
Net Assets ......... $ 19,209,144 100.00%
============= =======
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) See note 2B to the financial statements.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
68
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ............... $ 0 $ 86,041,707
============== ==============
Investments in securities, at market value ...... $ 0 $ 85,852,129
Short-term securities, at amortized cost ......... 130,457,585 6,619,236
Cash ............................................. 1,912 6,186
Cash collateral for securities on loan ............ 0 7,715,625
Receivables:
Securities sold ................................. 0 4,958,995
Interest ....................................... 711,896 1,395,560
Dividends ....................................... 0 0
Foreign receivable .............................. 0 0
Foreign currency contracts ..................... 0 0
Other .......................................... 0 178,416
-------------- --------------
Total assets .................................... 131,171,393 106,726,147
-------------- --------------
LIABILITIES:
Securities purchased .............................. 0 4,996,903
Accounts payable and accrued liabilities:
Investment advisory fees ........................ 43,508 39,772
Due to foreign sub-custodian ..................... 0 0
Dividends to shareholders ........................ 568,175 0
Deposits for securities on loan .................. 0 7,715,625
Foreign currency contracts ..................... 0 0
Other fees ....................................... 6,680 181,561
-------------- --------------
Total liabilities .............................. 618,363 12,933,861
-------------- --------------
Total net assets .............................. $ 130,553,030 $ 93,792,286
============== ==============
NET ASSETS:
Capital stock shares authorized .................. 225,000,000 25,000,000
============== ==============
Capital stock ($.01 par value) .................. $ 1,305,530 $ 86,894
Additional paid-in-capital ........................ 129,247,500 99,043,987
Accumulated undistributed net investment
income (loss) .................................... 0 1,971,331
Accumulated undistributed net realized
gain (loss) on:
Investment and foreign currency
transactions .................................... 0 (7,120,348)
Net unrealized appreciation
(depreciation) on:
Investment securities ........................... 0 (189,578)
Foreign currency transactions .................. 0 0
Futures contracts .............................. 0 0
-------------- --------------
Net assets applicable to outstanding
shares of capital ................................. $ 130,553,030 $ 93,792,286
============== ==============
Shares outstanding at June 30, 1997 ............... 130,553,030 8,689,407
============== ==============
Net asset value per share ........................ $ 1.00 $ 10.79
============== ==============
<CAPTION>
SHORT-TO- STRATEGIC
INTERMEDIATE TOTAL
GROWTH GOVERNMENT GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (A)
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............... $ 1,007,206,970 $ 20,981,384 $ 585,073,285 $ 375,783,283
=============== ============== ============== ==============
Investments in securities, at market value ...... $ 1,495,875,696 $ 21,015,496 $ 729,271,541 $ 469,730,433
Short-term securities, at amortized cost ......... 233,641,000 4,264,262 0 2,620,554
Cash ............................................. 476,113 0 36,955,521 0
Cash collateral for securities on loan ............ 94,154,600 2,565,000 143,258,550 46,052,100
Receivables:
Securities sold ................................. 3,563,556 0 43,192,989 0
Interest ....................................... 101,886 308,924 21,877 2,428,091
Dividends ....................................... 594,488 0 1,212,230 533,108
Foreign receivable .............................. 42,992 0 297,726 1,600
Foreign currency contracts ..................... 0 0 8,959,346 0
Other .......................................... 1,508,979 32,045 1,576,629 452,730
--------------- -------------- -------------- --------------
Total assets .................................... 1,829,959,310 28,185,727 964,746,409 521,818,616
--------------- -------------- -------------- --------------
LIABILITIES:
Securities purchased .............................. 13,676,563 0 43,535,570 1,599,529
Accounts payable and accrued liabilities:
Investment advisory fees ........................ 1,153,845 12,952 479,053 314,967
Due to foreign sub-custodian ..................... 0 0 47,034,609 0
Dividends to shareholders ........................ 0 0 0 0
Deposits for securities on loan .................. 94,154,600 2,565,000 143,258,550 46,052,100
Foreign currency contracts ..................... 0 0 2,138,919 0
Other fees ....................................... 1,627,110 33,286 1,523,954 455,032
--------------- -------------- -------------- --------------
Total liabilities .............................. 110,612,118 2,611,238 237,970,655 48,421,628
--------------- -------------- -------------- --------------
Total net assets .............................. $ 1,719,347,192 $ 25,574,489 $ 726,775,754 $ 473,396,988
=============== ============== ============== ==============
NET ASSETS:
Capital stock shares authorized .................. 125,000,000 100,000,000 100,000,000 100,000,000
=============== ============== ============== ==============
Capital stock ($.01 par value) .................. $ 444,076 $ 24,643 $ 347,974 $ 298,994
Additional paid-in-capital ........................ 1,142,812,988 25,409,279 537,048,558 364,113,343
Accumulated undistributed net investment
income (loss) .................................... 8,328,454 457,398 314,212 4,697,358
Accumulated undistributed net realized
gain (loss) on:
Investment and foreign currency
transactions .................................... 79,121,238 (350,943) 38,157,518 10,340,143
Net unrealized appreciation
(depreciation) on:
Investment securities ........................... 488,668,726 34,112 144,198,256 93,947,150
Foreign currency transactions .................. (28,290) 0 6,709,236 0
Futures contracts .............................. 0 0 0 0
--------------- -------------- -------------- --------------
Net assets applicable to outstanding
shares of capital ................................. $ 1,719,347,192 $ 25,574,489 $ 726,775,754 $ 473,396,988
=============== ============== ============== ==============
Shares outstanding at June 30, 1997 ............... 44,407,613 2,464,251 34,797,410 29,899,419
=============== ============== ============== ==============
Net asset value per share ........................ $ 38.72 $ 10.38 $ 20.89 $ 15.83
=============== ============== ============== ==============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
69
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE
GROWTH GROWTH
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ............ $ 325,344,805 $ 210,153,241
============= =============
Investments in securities, at market value ... $ 456,822,114 $ 265,278,703
Short-term securities, at amortized cost ...... 39,460,000 17,687,289
Cash .......................................... 8,711 733
Cash collateral for securities on loan ...... 113,756,653 32,005,900
Receivables:
Securities sold .............................. 1,709,994 3,507,605
Interest .................................... 17,407 7,596
Dividends .................................... 108,364 114,374
Foreign receivable ........................... 1,641 0
Foreign currency contracts .................. 0 0
Other ....................................... 1,222,451 353,488
------------- -------------
Total assets .............................. 613,107,335 318,955,688
------------- -------------
LIABILITIES:
Securities purchased ........................ 100,000 10,270,929
Accounts payable and accrued liabilities:
Investment advisory fees ..................... 330,467 182,968
Due to foreign sub-custodian ............... 0 0
Dividends to shareholders .................. 0 0
Deposits for securities on loan ............ 113,756,653 32,005,900
Foreign currency contracts .................. 0 0
Other fees ................................. 1,169,849 382,711
------------- -------------
Total liabilities ........................... 115,356,969 42,842,508
------------- -------------
Total net assets ........................... $ 497,750,366 $ 276,113,180
============= =============
NET ASSETS:
Capital stock shares authorized ............... 100,000,000 75,000,000
============= =============
Capital stock ($.01 par value) ............... $ 249,649 $ 170,663
Additional paid-in-capital .................. 352,309,441 208,926,926
Accumulated undistributed net investment
income (loss) ................................. (406,878) (36,550)
Accumulated undistributed net realized
gain (loss) on:
Investment and foreign currency
transactions ................................. 14,120,845 11,926,679
Net unrealized appreciation
(depreciation) on:
Investment securities ........................ 131,477,309 55,125,462
Foreign currency transactions ............... 0 0
Futures contracts ........................... 0 0
------------- -------------
Net assets applicable to outstanding
shares of capital ........................... $ 497,750,366 $ 276,113,180
============= =============
Shares outstanding at June 30, 1997 ......... 24,964,890 17,066,257
============= =============
Net asset value per share ..................... $ 19.94 $ 16.18
============= =============
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO (A) PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............ $ 52,784,128 $ 39,176,223 $ 217,953,634
============= ============ ==============
Investments in securities, at market value ... $ 59,809,714 $ 43,448,354 $ 243,763,012
Short-term securities, at amortized cost ...... 138,103 1,879,000 20,508,211
Cash .......................................... 72 1,257 84,918
Cash collateral for securities on loan ...... 10,856,348 6,333,800 27,120,940
Receivables:
Securities sold .............................. 556,721 221,284 356,888
Interest .................................... 360,511 68,953 1,519,714
Dividends .................................... 120,606 161,819 292,545
Foreign receivable ........................... 1,184 4,999 0
Foreign currency contracts .................. 0 0 0
Other ....................................... 145,633 63,295 342,183
------------- ------------ --------------
Total assets .............................. 71,988,892 52,182,761 293,988,411
------------- ------------ --------------
LIABILITIES:
Securities purchased ........................ 43,020 887,771 3,809,380
Accounts payable and accrued liabilities:
Investment advisory fees ..................... 40,931 27,974 175,894
Due to foreign sub-custodian ............... 0 0 0
Dividends to shareholders .................. 0 0 0
Deposits for securities on loan ............ 10,856,348 6,333,800 27,120,940
Foreign currency contracts .................. 0 0 0
Other fees ................................. 133,085 62,652 362,860
------------- ------------ --------------
Total liabilities ........................... 11,073,384 7,312,197 31,469,074
------------- ------------ --------------
Total net assets ........................... $ 60,915,508 $ 44,870,564 $ 262,519,337
============= ============ ==============
NET ASSETS:
Capital stock shares authorized ............... 75,000,000 75,000,000 75,000,000
============= ============ ==============
Capital stock ($.01 par value) ............... $ 50,154 $ 35,533 $ 193,454
Additional paid-in-capital .................. 52,122,833 37,728,181 227,087,979
Accumulated undistributed net investment
income (loss) ................................. 728,828 819,105 2,699,875
Accumulated undistributed net realized
gain (loss) on:
Investment and foreign currency
transactions ................................. 988,107 2,015,723 6,728,651
Net unrealized appreciation
(depreciation) on:
Investment securities ........................ 7,025,586 4,272,131 25,809,378
Foreign currency transactions ............... 0 (109) 0
Futures contracts ........................... 0 0 0
------------- ------------ --------------
Net assets applicable to outstanding
shares of capital ........................... $ 60,915,508 $ 44,870,564 $ 262,519,337
============= ============ ==============
Shares outstanding at June 30, 1997 ......... 5,015,372 3,553,267 19,345,373
============= ============ ==============
Net asset value per share ..................... $ 12.15 $ 12.63 $ 13.57
============= ============ ==============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
70
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GLOBAL VALUE INTERNATIONAL
GROWTH SECTOR EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............ $ 34,705,837 $ 9,884,263 $ 83,339,938 $ 10,028,409 $ 16,591,853
============= ============= ============== ============ ============
Investments in securities, at market value ... $ 37,943,040 $ 10,613,822 $ 96,489,381 $ 10,865,591 $ 17,476,239
Short-term securities, at amortized cost ...... 0 0 22,125,912 0 0
Cash .......................................... 543,620 748,002 0 2,171,190 1,770,136
Cash collateral for securities on loan ......... 0 0 0 0 0
Receivables:
Securities sold .............................. 578,520 0 0 51,470 16,984
Interest .................................... 13,197 97,894 2,627 8,396 13,025
Dividends .................................... 21,927 4,467 57,856 21,476 15,270
Foreign receivable ........................... 0 2,075 0 5,284 309
Foreign currency contracts .................. 0 0 0 7,075 0
Other ....................................... 0 0 0 0 0
------------- ------------- -------------- ------------ ------------
Total assets ................................. 39,100,304 11,466,260 118,675,776 13,130,482 19,291,963
------------- ------------- -------------- ------------ ------------
LIABILITIES:
Securities purchased ........................... 785,342 386,163 4,166,059 940,363 56,283
Accounts payable and accrued liabilities:
Investment advisory fees ..................... 25,621 6,880 73,602 8,905 10,157
Due to foreign sub-custodian .................. 0 0 0 172,150 0
Dividends to shareholders ..................... 0 0 0 0 0
Deposits for securities on loan ............... 0 0 0 0 0
Foreign currency contracts .................. 0 0 0 42 56
Other fees .................................... 6,405 4,581 5,890 4,449 16,323
------------- ------------- -------------- ------------ ------------
Total liabilities ........................... 817,368 397,624 4,245,551 1,125,909 82,819
------------- ------------- -------------- ------------ ------------
Total net assets ........................... $ 38,282,936 $ 11,068,636 $ 114,430,225 $ 12,004,573 $ 19,209,144
============= ============= ============== ============ ============
NET ASSETS:
Capital stock shares authorized ............... 75,000,000 75,000,000 75,000,000 75,000,000 75,000,000
============= ============= ============== ============ ============
Capital stock ($.01 par value) ............... $ 27,280 $ 9,854 $ 88,617 $ 10,584 $ 16,705
Additional paid-in-capital ..................... 34,742,209 10,103,010 100,203,256 11,091,840 18,188,359
Accumulated undistributed net investment
income (loss) ................................. 102,805 74,832 410,405 43,515 42,553
Accumulated undistributed net realized
gain (loss) on:
Investment and foreign currency
transactions ................................. 173,439 148,485 578,504 34,371 93,156
Net unrealized appreciation
(depreciation) on:
Investment securities ........................ 3,237,203 729,559 13,149,443 837,182 884,386
Foreign currency transactions ............... 0 2,896 0 (12,919) 10
Futures contracts ........................... 0 0 0 0 (16,025)
------------- ------------- -------------- ------------ ------------
Net assets applicable to outstanding
shares of capital .............................. $ 38,282,936 $ 11,068,636 $ 114,430,225 $ 12,004,573 $ 19,209,144
============= ============= ============== ============ ============
Shares outstanding at June 30, 1997 ............ 2,727,978 985,439 8,861,706 1,058,440 1,670,478
============= ============= ============== ============ ============
Net asset value per share ..................... $ 14.03 $ 11.23 $ 12.91 $ 11.34 $ 11.50
============= ============= ============== ============ ============
</TABLE>
The notes to the financial statements are an integral part of this report.
71
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY
MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 3,627,988 $ 3,107,741
Dividends .............................. 0 0
Foreign tax withheld .................. 0 0
------------ --------------
Total investment income ............... 3,627,988 3,107,741
------------ --------------
EXPENSES:
Investment advisory fees ............... 259,825 230,778
Printing and shareholder reports ...... 13,978 35,802
Custody fees ........................... 16,017 12,488
Legal fees .............................. 1,070 2,699
Auditing and accounting fees ............ 3,954 3,954
Directors fees ........................ 228 585
Registration fees ..................... 55 229
Other fees .............................. 5,952 13,248
------------ --------------
Total expenses ........................ 301,079 299,783
Less:
Advisory fee waiver and expense
reimbursement ........................ 0 0
Fees paid indirectly .................. 174 1,155
------------ --------------
Net expenses ........................ 300,905 298,628
------------ --------------
Net investment income (loss) ............ 3,327,083 2,809,113
------------ --------------
Net realized gain (loss) on:
Investment securities ............... 0 (1,185,514)
Foreign currency transactions ......... 0 0
------------ --------------
Total net realized gain (loss) ...... 0 (1,185,514)
------------ --------------
Change in unrealized appreciation
(depreciation) on:
Investment securities .................. 0 100,176
Futures contracts ..................... 0 0
Foreign currency transactions ......... 0 0
------------ --------------
Total change in unrealized
appreciation (depreciation) ......... 0 100,176
------------ --------------
Net gain (loss) on investments ......... 0 (1,085,338)
------------ --------------
Net increase (decrease) in net assets
resulting from operations ............ $ 3,327,083 $ 1,723,775
============ ==============
<CAPTION>
SHORT-TO- STRATEGIC
INTERMEDIATE TOTAL
GROWTH GOVERNMENT GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (A)
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 9,340,422 $ 787,191 $ 1,049,621 $ 3,735,937
Dividends .............................. 5,758,576 0 5,128,894 3,216,996
Foreign tax withheld .................. (60,108) 0 (627,486) (7,946)
------------- --------- ------------ ------------
Total investment income ............... 15,038,890 787,191 5,551,029 6,944,987
------------- --------- ------------ ------------
EXPENSES:
Investment advisory fees ............... 6,290,481 74,331 2,454,069 1,668,215
Printing and shareholder reports ...... 278,276 5,271 159,039 94,372
Custody fees ........................... 123,837 9,336 268,127 33,916
Legal fees .............................. 21,308 394 12,558 7,232
Auditing and accounting fees ............ 13,829 3,954 8,996 6,246
Directors fees ........................ 4,589 86 2,668 1,556
Registration fees ..................... 1,704 50 1,235 638
Other fees .............................. 96,817 773 (9,206) 29,008
------------- --------- ------------ ------------
Total expenses ........................ 6,830,841 94,195 2,897,486 1,841,183
Less:
Advisory fee waiver and expense
reimbursement ........................ 0 0 0 0
Fees paid indirectly .................. 8,999 34 1,302 3,438
------------- --------- ------------ ------------
Net expenses ........................ 6,821,842 94,161 2,896,184 1,837,745
------------- --------- ------------ ------------
Net investment income (loss) ............ 8,217,048 693,030 2,654,845 5,107,242
------------- --------- ------------ ------------
Net realized gain (loss) on:
Investment securities ............... 79,237,013 7,747 31,029,223 10,417,025
Foreign currency transactions ......... 467,736 0 7,373,463 0
------------- --------- ------------ ------------
Total net realized gain (loss) ...... 79,704,749 7,747 38,402,686 10,417,025
------------- --------- ------------ ------------
Change in unrealized appreciation
(depreciation) on:
Investment securities .................. 88,117,835 (80,957) 55,090,129 40,380,308
Futures contracts ..................... 0 0 0 0
Foreign currency transactions ......... (494,164) 0 3,757,374 0
------------- --------- ------------ ------------
Total change in unrealized
appreciation (depreciation) ......... 87,623,671 (80,957) 58,847,503 40,380,308
------------- --------- ------------ ------------
Net gain (loss) on investments ......... 167,328,420 (73,210) 97,250,189 50,797,333
------------- --------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations ............ $ 175,545,468 $ 619,820 $ 99,905,034 $ 55,904,575
============= ========= ============ ============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
72
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE GROWTH & TACTICAL ASSET
GROWTH GROWTH BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (A) PORTFOLIO
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 1,035,838 $ 314,136 $ 646,161 $ 117,582 $ 3,098,668
Dividends .............................. 622,875 811,365 489,737 850,064 975,772
Foreign tax withheld .................. 0 0 0 (6,733) (2,000)
------------ ------------ ------------ ----------- ------------
Total investment income ............... 1,658,713 1,125,501 1,135,898 960,913 4,072,440
------------ ------------ ------------ ----------- ------------
EXPENSES:
Investment advisory fees ............... 1,772,811 963,302 217,656 152,342 924,764
Printing and shareholder reports ...... 172,821 125,777 19,015 17,868 39,384
Custody fees ........................... 49,189 25,412 7,466 13,362 24,342
Legal fees ........................... 13,356 9,750 1,480 1,377 3,133
Auditing and accounting fees ......... 6,246 3,954 3,954 3,954 3,979
Directors fees ........................ 2,866 2,092 317 296 664
Registration fees ..................... 994 758 137 154 315
Other fees ........................... 47,859 31,036 5,469 5,288 12,705
------------ ------------ ------------ ----------- ------------
Total expenses ........................ 2,066,142 1,162,081 255,494 194,641 1,009,286
Less:
Advisory fee waiver and expense
reimbursement ........................ 0 0 0 0 0
Fees paid indirectly .................. 551 30 453 58 2,682
------------ ------------ ------------ ----------- ------------
Net expenses ........................ 2,065,591 1,162,051 255,041 194,583 1,006,604
------------ ------------ ------------ ----------- ------------
Net investment income (loss) ......... (406,878) (36,550) 880,857 766,330 3,065,836
------------ ------------ ------------ ----------- ------------
Net realized gain (loss) on:
Investment securities ............... 14,272,389 12,256,255 1,223,513 2,030,592 6,865,199
Foreign currency transactions ......... 0 0 0 (1,686) 0
------------ ------------ ------------ ----------- ------------
Total net realized gain (loss) ...... 14,272,389 12,256,255 1,223,513 2,028,906 6,865,199
------------ ------------ ------------ ----------- ------------
Change in unrealized appreciation
(depreciation) on:
Investment securities ............... 25,319,767 21,995,162 2,139,008 790,322 9,574,851
Futures contracts ..................... 0 0 0 0 0
Foreign currency transactions ......... 0 0 0 (229) 0
------------ ------------ ------------ ----------- ------------
Total change in unrealized
appreciation (depreciation) ......... 25,319,767 21,995,162 2,139,008 790,093 9,574,851
------------ ------------ ------------ ----------- ------------
Net gain (loss) on investments ...... 39,592,156 34,251,417 3,362,521 2,818,999 16,440,050
------------ ------------ ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations ............ $ 39,185,278 $ 34,214,867 $ 4,243,378 $ 3,585,329 $ 19,505,886
============ ============ ============ =========== ============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
73
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
C.A.S.E GLOBAL VALUE INTERNATIONAL
GROWTH SECTOR EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (A) PORTFOLIO (A)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 148,591 $122,173 $ 351,341 $ 26,252 $ 39,743
Dividends .............................. 116,679 32,517 431,901 65,025 44,427
Foreign tax withheld .................. 0 (4,020) 0 (9,585) (457)
------------ --------- ------------- --------- -----------
Total investment income ............... 265,270 150,670 783,242 81,692 83,713
------------ --------- ------------- --------- -----------
EXPENSES:
Investment advisory fees ............... 129,972 37,376 303,781 25,451 25,329
Printing and shareholder reports ...... 11,694 1,850 14,582 913 885
Custody fees ........................... 17,592 19,673 17,416 48,925 25,628
Legal fees ........................... 999 153 1,331 121 110
Auditing and accounting fees ......... 2,121 2,121 2,121 2,121 2,121
Directors fees ........................ 205 32 267 21 21
Registration fees ..................... 50 8 65 5 5
Other fees ........................... 6,962 0 14,850 15,133 9,611
------------ --------- ------------- --------- -----------
Total expenses ........................ 169,595 61,213 354,413 92,690 63,710
Less:
Advisory fee waiver and expense
reimbursement ........................ 3,314 0 0 52,990 20,140
Fees paid indirectly .................. 3,816 2,207 0 1,523 2,410
------------ --------- ------------- --------- -----------
Net expenses ........................ 162,465 59,006 354,413 38,177 41,160
------------ --------- ------------- --------- -----------
Net investment income (loss) ......... 102,805 91,664 428,829 43,515 42,553
------------ --------- ------------- --------- -----------
Net realized gain (loss) on:
Investment securities ............... 173,441 123,799 573,504 (3,061) 93,032
Foreign currency transactions ......... 0 9,062 0 37,432 124
------------ --------- ------------- --------- -----------
Total net realized gain (loss) ...... 173,441 132,861 573,504 34,371 93,156
------------ --------- ------------- --------- -----------
Change in unrealized appreciation
(depreciation) on:
Investment securities ............... 1,676,045 458,540 9,824,169 837,182 852,336
Futures contracts ..................... 0 0 0 0 16,025
Foreign currency transactions ......... 0 2,900 0 (12,919) 10
------------ --------- ------------- --------- -----------
Total change in unrealized
appreciation (depreciation) ......... 1,676,045 461,440 9,824,169 824,263 868,371
------------ --------- ------------- --------- -----------
Net gain (loss) on investments ......... 1,849,486 594,301 10,397,673 858,634 961,527
------------ --------- ------------- --------- -----------
Net increase (decrease) in net assets
resulting from operations ............ $ 1,952,291 $ 685,965 $ 10,826,502 $ 902,149 $ 1,004,080
============ ========= ============= ========= ===========
</TABLE>
(a) The inception date of the portfolio was January 2, 1997.
The notes to the financial statements are an integral part of this report.
74
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
----------------------------------- ---------------------------------
June 30 December 31 June 30 December 31
1997 1996 1997 1996
----------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 3,327,083 $ 5,073,911 $ 2,809,113 $ 5,632,916
Net realized gain (loss) on investments
and foreign currency transactions ......... 0 0 (1,185,514) 1,596,781
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 0 0 100,176 (7,255,058)
--------------- --------------- -------------- --------------
Net increase (decrease) in net assets
resulting from operations .................. 3,327,083 5,073,911 1,723,775 (25,361)
--------------- --------------- -------------- --------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (3,327,083) (5,073,911) (1,000,000) (5,488,294)
In excess of net investment income ......... 0 0 0 0
Net realized gains ........................ 0 0 0 0
In excess of net realized gains ............ 0 0 0 0
--------------- --------------- -------------- --------------
Total distributions ..................... (3,327,083) (5,073,911) (1,000,000) (5,488,294)
--------------- --------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 109,992,848 177,545,050 9,607,347 24,809,395
Dividends and distributions reinvested ...... 3,327,083 5,073,911 1,000,000 5,488,294
Cost of shares repurchased .................. (104,881,214) (141,048,320) (13,297,546) (25,997,209)
--------------- --------------- -------------- --------------
Increase (decrease) in net assets from
capital share transactions ............... 8,438,717 41,570,641 (2,690,199) 4,300,480
--------------- --------------- -------------- --------------
Net increase (decrease) in net assets ...... 8,438,717 41,570,641 (1,966,424) (1,213,175)
NET ASSETS:
Beginning of period ........................ 122,114,313 80,543,672 95,758,710 96,971,885
--------------- --------------- -------------- --------------
End of period .............................. $ 130,553,030 $ 122,114,313 $ 93,792,286 $ 95,758,710
=============== =============== ============== ==============
Undistributed net investment income ...... $ 0 $ 0 $ 1,971,331 $ 162,218
=============== =============== ============== ==============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 122,114,313 80,543,672 8,943,366 8,547,388
--------------- --------------- -------------- --------------
Shares issued .............................. 109,992,848 177,545,050 895,679 2,281,700
Shares issued - reinvestment of dividends
and distributions ........................... 3,327,083 5,073,911 92,550 514,858
Shares redeemed ........................... (104,881,214) (141,048,320) (1,242,188) (2,400,580)
--------------- --------------- -------------- --------------
Increase (decrease) in shares
outstanding ................................. 8,438,717 41,570,641 (253,959) 395,978
--------------- --------------- -------------- --------------
Shares outstanding - end of period ......... 130,553,030 122,114,313 8,689,407 8,943,366
=============== =============== ============== ==============
<CAPTION>
GROWTH
PORTFOLIO
--------------------------------------
June 30 December 31
1997 1996
------------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 8,217,048 $ 13,626,320
Net realized gain (loss) on investments
and foreign currency transactions ......... 79,704,749 90,853,891
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 87,623,671 116,258,704
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations .................. 175,545,468 220,738,915
--------------- ---------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (2,087,842) (14,201,680)
In excess of net investment income ......... 0 (585,559)
Net realized gains ........................ (11,728,835) (81,744,608)
In excess of net realized gains ............ 0 0
--------------- ---------------
Total distributions ..................... (13,816,677) (96,531,847)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 96,455,966 219,914,964
Dividends and distributions reinvested ...... 13,816,677 96,531,847
Cost of shares repurchased .................. (80,063,714) (108,418,800)
--------------- ---------------
Increase (decrease) in net assets from
capital share transactions ............... 30,208,929 208,028,011
--------------- ---------------
Net increase (decrease) in net assets ...... 191,937,720 332,235,079
NET ASSETS:
Beginning of period ........................ 1,527,409,472 1,195,174,393
--------------- ---------------
End of period .............................. $ 1,719,347,192 $ 1,527,409,472
=============== ===============
Undistributed net investment income ...... $ 8,328,454 $ 2,199,248
=============== ===============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 43,638,675 37,749,399
--------------- ---------------
Shares issued .............................. 2,661,808 6,261,333
Shares issued - reinvestment of dividends
and distributions ........................... 354,771 2,730,723
Shares redeemed ........................... (2,247,641) (3,102,780)
--------------- ---------------
Increase (decrease) in shares
outstanding ................................. 768,938 5,889,276
--------------- ---------------
Shares outstanding - end of period ......... 44,407,613 43,638,675
=============== ===============
</TABLE>
The notes to the financial statements are an integral part of this report.
75
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT GLOBAL
PORTFOLIO PORTFOLIO
--------------------------------- ----------------------------------
June 30 December 31 June 30 December 31
1997 1996 1997 1996
---------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 693,030 $ 1,343,924 $ 2,654,845 $ 1,967,385
Net realized gain (loss) on investments
and foreign currency transactions ......... 7,747 69,307 38,402,686 51,505,234
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... (80,957) (544,297) 58,847,503 45,461,409
------------ -------------- -------------- -------------
Net increase (decrease) in net assets
resulting from operations .................. 619,820 868,934 99,905,034 98,934,028
------------ -------------- -------------- -------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (300,000) (1,282,128) (4,459,852) (1,163,575)
In excess of net investment income ......... 0 0 0 (4,516,640)
Net realized gains ........................ 0 0 (5,816,453) (39,908,690)
In excess of net realized gains ............ 0 0 0 0
------------ -------------- -------------- -------------
Total distributions ..................... (300,000) (1,282,128) (10,276,305) (45,588,905)
------------ -------------- -------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 4,402,821 12,991,955 105,636,819 186,542,360
Dividends and distributions reinvested ...... 300,000 1,282,128 10,276,305 45,588,905
Cost of shares repurchased .................. (5,546,363) (11,350,411) (13,585,834) (40,162,300)
------------ -------------- -------------- -------------
Increase (decrease) in net assets from
capital share transactions ............... (843,542) 2,923,672 102,327,290 191,968,965
------------ -------------- -------------- -------------
Net increase (decrease) in net assets ...... (523,722) 2,510,478 191,956,019 245,314,088
NET ASSETS:
Beginning of period ........................ 26,098,211 23,587,733 534,819,735 289,505,647
------------ -------------- -------------- -------------
End of period .............................. $ 25,574,489 $ 26,098,211 $ 26,775,754 $ 534,819,735
============ ============== ============== =============
Undistributed net investment income ...... $ 457,398 $ 64,368 $ 314,212 $ 2,119,219
============ ============== ============== =============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 2,547,452 2,264,543 29,523,310 18,658,875
------------ -------------- -------------- -------------
Shares issued .............................. 426,182 1,250,339 5,488,459 10,474,987
Shares issued - reinvestment of dividends
and distributions ........................... 28,900 125,061 486,490 2,526,793
Shares redeemed ........................... (538,283) (1,092,491) (700,849) (2,137,345)
------------ -------------- -------------- -------------
Increase (decrease) in shares
outstanding ................................. (83,201) 282,909 5,274,100 10,864,435
------------ -------------- -------------- -------------
Shares outstanding - end of period ......... 2,464,251 2,547,452 34,797,410 29,523,310
============ ============== ============== =============
<CAPTION>
STRATEGIC
TOTAL RETURN
PORTFOLIO (A)
----------------------------------
June 30 December 31
1997 1996
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 5,107,242 $ 8,361,810
Net realized gain (loss) on investments
and foreign currency transactions ......... 10,417,025 13,598,753
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 40,380,308 21,360,000
------------- -------------
Net increase (decrease) in net assets
resulting from operations .................. 55,904,575 43,320,563
------------- -------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (700,000) (8,089,663)
In excess of net investment income ......... 0 0
Net realized gains ........................ (1,076,881) (13,148,756)
In excess of net realized gains ............ 0 0
------------- -------------
Total distributions ..................... (1,776,881) (21,238,419)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 37,599,028 111,098,802
Dividends and distributions reinvested ...... 1,776,881 21,238,419
Cost of shares repurchased .................. (10,247,537) (21,084,113)
------------- -------------
Increase (decrease) in net assets from
capital share transactions ............... 29,128,372 111,253,108
------------- -------------
Net increase (decrease) in net assets ...... 83,256,066 133,335,252
NET ASSETS:
Beginning of period ........................ 390,140,922 256,805,670
------------- -------------
End of period .............................. $ 473,396,988 $ 390,140,922
============= =============
Undistributed net investment income ...... $ 4,697,358 $ 290,116
============= =============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 27,922,619 19,962,450
------------- -------------
Shares issued .............................. 2,572,153 7,994,839
Shares issued - reinvestment of dividends
and distributions ........................... 113,203 1,513,827
Shares redeemed ........................... (708,556) (1,548,497)
------------- -------------
Increase (decrease) in shares
outstanding ................................. 1,976,800 7,960,169
------------- -------------
Shares outstanding - end of period ......... 29,899,419 27,922,619
============= =============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
76
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH
PORTFOLIO
-----------------------------------
June 30 December 31
1997 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ (406,878) $ (891,620)
Net realized gain (loss) on investments
and foreign currency transactions ......... 14,272,389 20,856,619
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 25,319,767 37,786,633
------------- -------------
Net increase (decrease) in net assets
resulting from operations .................. 39,185,278 57,751,632
------------- -------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... 0 0
In excess of net investment income ......... 0 (16,877)
Net realized gains ........................ (2,822,881) (18,935,588)
In excess of net realized gains ............ 0 0
------------- -------------
Total distributions ..................... (2,822,881) (18,952,465)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 55,010,872 133,226,763
Dividends and distributions reinvested ...... 2,822,881 18,952,465
Cost of shares repurchased .................. (27,900,111) (48,043,303)
------------- -------------
Increase (decrease) in net assets from
capital share transactions ............... 29,933,642 104,135,925
------------- -------------
Net increase (decrease) in net assets ...... 66,296,039 142,935,092
NET ASSETS:
Beginning of period ........................ 431,454,327 288,519,235
------------- -------------
End of period .............................. $ 497,750,366 $ 431,454,327
============= =============
Undistributed net investment income ...... $ (406,878) $ 0
============= =============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 23,370,941 17,758,249
------------- -------------
Shares issued .............................. 2,976,136 7,201,118
Shares issued - reinvestment of dividends
and distributions ........................... 143,450 1,027,524
Shares redeemed ........................... (1,525,637) (2,615,950)
------------- -------------
Increase (decrease) in shares
outstanding ................................. 1,593,949 5,612,692
------------- -------------
Shares outstanding - end of period ......... 24,964,890 23,370,941
============= =============
<CAPTION>
AGGRESSIVE GROWTH BALANCED
PORTFOLIO PORTFOLIO
----------------------------------- ---------------------------------
June 30 December 31 June 30 December 31
1997 1996 1997 1996
----------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ (36,550) $ (191,022) $ 880,857 $ 1,237,803
Net realized gain (loss) on investments
and foreign currency transactions ......... 12,256,255 8,279,659 1,223,513 1,348,035
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 21,995,162 11,230,327 2,139,008 1,733,124
------------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations .................. 34,214,867 19,318,964 4,243,378 4,318,962
------------- ------------- ------------ ------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... 0 0 (274,150) (1,117,569)
In excess of net investment income ......... 0 (2,670,490) 0 0
Net realized gains ........................ (1,718,313) (3,787,108) (435,405) (421,489)
In excess of net realized gains ............ 0 0 0 0
------------- ------------- ------------ ------------
Total distributions ..................... (1,718,313) (6,457,598) (709,555) (1,539,058)
------------- ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 40,899,312 99,773,436 10,037,984 19,661,402
Dividends and distributions reinvested ...... 1,718,313 6,457,598 709,555 1,539,058
Cost of shares repurchased .................. (19,553,376) (57,074,077) (2,696,533) (5,764,130)
------------- ------------- ------------ ------------
Increase (decrease) in net assets from
capital share transactions ............... 23,064,249 49,156,957 8,051,006 15,436,330
------------- ------------- ------------ ------------
Net increase (decrease) in net assets ...... 55,560,803 62,018,323 11,584,829 18,216,234
NET ASSETS:
Beginning of period ........................ 220,552,377 158,534,054 49,330,679 31,114,445
------------- ------------- ------------ ------------
End of period .............................. $ 276,113,180 $ 220,552,377 $ 60,915,508 $ 49,330,679
============= ============= ============ ============
Undistributed net investment income ...... $ (36,550) $ 0 $ 728,828 $ 122,121
============= ============= ============ ============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 15,555,943 11,964,511 4,329,270 2,925,799
------------- ------------- ------------ ------------
Shares issued .............................. 2,739,173 7,309,426 858,145 1,800,033
Shares issued - reinvestment of dividends
and distributions ........................... 106,596 470,994 58,549 135,690
Shares redeemed ........................... (1,335,455) (4,188,988) (230,592) (532,252)
------------- ------------- ------------ ------------
Increase (decrease) in shares
outstanding ................................. 1,510,314 3,591,432 686,102 1,403,471
------------- ------------- ------------ ------------
Shares outstanding - end of period ......... 17,066,257 15,555,943 5,015,372 4,329,270
============= ============= ============ ============
</TABLE>
The notes to the financial statements are an integral part of this report.
77
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME
PORTFOLIO (A)
---------------------------------
June 30 December 31
1997 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 766,330 $ 1,149,798
Net realized gain (loss) on investments
and foreign currency transactions ......... 2,028,906 1,514,745
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 790,093 937,101
------------ ------------
Net increase (decrease) in net assets
resulting from operations .................. 3,585,329 3,601,644
------------ ------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (100,000) (996,482)
In excess of net investment income ......... 0 0
Net realized gains ........................ (542,383) (981,918)
In excess of net realized gains ............ 0 0
------------ ------------
Total distributions ..................... (642,383) (1,978,400)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 8,977,971 18,780,850
Dividends and distributions reinvested ...... 642,383 1,978,400
Cost of shares repurchased .................. (5,808,067) (8,874,652)
------------ ------------
Increase (decrease) in net assets from
capital share transactions ............... 3,812,287 11,884,598
------------ ------------
Net increase (decrease) in net assets ...... 6,755,233 13,507,842
NET ASSETS:
Beginning of period ........................ 38,115,331 24,607,489
------------ ------------
End of period .............................. $ 44,870,564 $ 38,115,331
============ ============
Undistributed net investment income ...... $ 819,105 $ 152,775
============ ============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 3,240,316 2,212,175
------------ ------------
Shares issued .............................. 743,742 1,645,679
Shares issued - reinvestment of dividends
and distributions ........................... 51,256 168,076
Shares redeemed ........................... (482,047) (785,614)
------------ ------------
Increase (decrease) in shares
outstanding ................................. 312,951 1,028,141
------------ ------------
Shares outstanding - end of period ......... 3,553,267 3,240,316
============ ============
<CAPTION>
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH
PORTFOLIO PORTFOLIO
----------------------------------- --------------------------------
June 30 December 31 June 30 December 31
1997 1996 1997 1996
----------------- ----------------- ---------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 3,065,836 $ 4,531,735 $ 102,805 $ 102,508
Net realized gain (loss) on investments
and foreign currency transactions ......... 6,865,199 5,222,727 173,441 629,925
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 9,574,851 9,997,663 1,676,045 1,514,389
------------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations .................. 19,505,886 19,752,125 1,952,291 2,246,822
------------- ------------- ------------ ------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (600,000) (4,542,174) (12,212) (95,636)
In excess of net investment income ......... 0 (15,961) 0 0
Net realized gains ........................ (1,636,164) (3,723,111) (200,000) (429,926)
In excess of net realized gains ............ 0 0 0 0
------------- ------------- ------------ ------------
Total distributions ..................... (2,236,164) (8,281,246) (212,212) (525,562)
------------- ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 47,623,744 137,334,527 13,855,145 23,037,532
Dividends and distributions reinvested ...... 2,236,164 8,281,246 212,212 525,562
Cost of shares repurchased .................. (10,782,018) (71,445,894) (4,084,032) (1,303,064)
------------- ------------- ------------ ------------
Increase (decrease) in net assets from
capital share transactions ............... 39,077,890 74,169,879 9,983,325 22,260,030
------------- ------------- ------------ ------------
Net increase (decrease) in net assets ...... 56,347,612 85,640,758 11,723,404 23,981,290
NET ASSETS:
Beginning of period ........................ 206,171,725 120,530,967 26,559,532 2,578,242
------------- ------------- ------------ ------------
End of period .............................. $ 262,519,337 $ 206,171,725 $ 38,282,936 $ 26,559,532
============= ============= ============ ============
Undistributed net investment income ...... $ 2,699,875 $ 234,039 $ 102,805 $ 12,212
============= ============= ============ ============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 16,348,935 10,487,976 1,979,552 221,168
------------- ------------- ------------ ------------
Shares issued .............................. 3,660,420 11,297,595 1,039,844 1,821,039
Shares issued - reinvestment of dividends
and distributions ........................... 164,846 660,359 15,351 39,166
Shares redeemed ........................... (828,828) (6,096,995) (306,769) (101,821)
------------- ------------- ------------ ------------
Increase (decrease) in shares
outstanding ................................. 2,996,438 5,860,959 748,426 1,758,384
------------- ------------- ------------ ------------
Shares outstanding - end of period ......... 19,345,373 16,348,935 2,727,978 1,979,552
============= ============= ============ ============
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
78
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR
PORTFOLIO
--------------------------------
June 30 December 31
1997 1996 (a)
---------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 91,664 $ 22,794
Net realized gain (loss) on investments
and foreign currency transactions ......... 132,861 42,404
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 461,440 271,015
------------ -------------
Net increase (decrease) in net assets
resulting from operations .................. 685,965 336,213
------------ -------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (30,308) (11,859)
In excess of net investment income ......... 0 0
Net realized gains ........................ 0 (24,239)
In excess of net realized gains ............ 0 0
------------ -------------
Total distributions ..................... (30,308) (36,098)
------------ -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 5,098,924 7,998,720
Dividends and distributions reinvested ...... 30,308 36,098
Cost of shares repurchased .................. (1,702,328) (1,348,858)
------------ -------------
Increase (decrease) in net assets from
capital share transactions ............... 3,426,904 6,685,960
------------ -------------
Net increase (decrease) in net assets ...... 4,082,561 6,986,075
NET ASSETS:
Beginning of period ........................ 6,986,075 0
------------ -------------
End of period .............................. $ 11,068,636 $ 6,986,075
============ =============
Undistributed net investment income ...... $ 74,832 $ 13,476
============ =============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 662,187 0
------------ -------------
Shares issued .............................. 481,940 788,163
Shares issued - reinvestment of dividends
and distributions ........................... 2,679 3,424
Shares redeemed ........................... (161,367) (129,400)
------------ -------------
Increase (decrease) in shares
outstanding ................................. 323,252 662,187
------------ -------------
Shares outstanding - end of period ......... 985,439 662,187
============ =============
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------- ---------------- ----------------
June 30 December 31 June 30 June 30
1997 1996 (a) 1997 (b) 1997 (b)
----------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ 428,829 $ 192,952 $ 43,515 $ 42,553
Net realized gain (loss) on investments
and foreign currency transactions ......... 573,504 73,039 34,371 93,156
Change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ............... 9,824,169 3,325,274 824,263 868,371
------------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations .................. 10,826,502 3,591,265 902,149 1,004,080
------------- ------------ ------------ ------------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ..................... (50,335) (161,041) 0 0
In excess of net investment income ......... 0 0 0 0
Net realized gains ........................ 0 (68,039) 0 0
In excess of net realized gains ............ 0 0 0 0
------------- ------------ ------------ ------------
Total distributions ..................... (50,335) (229,080) 0 0
------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 61,245,874 48,034,709 12,721,933 20,778,035
Dividends and distributions reinvested ...... 50,335 229,080 0 0
Cost of shares repurchased .................. (7,036,458) (2,231,667) (1,619,509) (2,572,971)
------------- ------------ ------------ ------------
Increase (decrease) in net assets from
capital share transactions ............... 54,259,751 46,032,122 11,102,424 18,205,064
------------- ------------ ------------ ------------
Net increase (decrease) in net assets ...... 65,035,918 49,394,307 12,004,573 19,209,144
NET ASSETS:
Beginning of period ........................ 49,394,307 0 0 0
------------- ------------ ------------ ------------
End of period .............................. $ 114,430,225 $ 49,394,307 $ 12,004,573 $ 19,209,144
============= ============ ============ ============
Undistributed net investment income ...... $ 410,405 $ 31,911 $ 43,515 $ 42,553
============= ============ ============ ============
SHARE ACTIVITY:
Shares outstanding - beginning of period . 4,384,171 0 0 0
------------- ------------ ------------ ------------
Shares issued .............................. 5,072,161 4,575,121 1,217,807 1,930,179
Shares issued - reinvestment of dividends
and distributions ........................... 3,912 20,132 0 0
Shares redeemed ........................... (598,538) (211,082) (159,367) (259,701)
------------- ------------ ------------ ------------
Increase (decrease) in shares
outstanding ................................. 4,477,535 4,384,171 1,058,440 1,670,478
------------- ------------ ------------ ------------
Shares outstanding - end of period ......... 8,861,706 4,384,171 1,058,440 1,670,478
============= ============ ============ ============
</TABLE>
(a) The inception date of the portfolio was May 1, 1996.
(b) The inception date of the portfolio was January 2, 1997.
The notes to the financial statements are an integral part of this report.
79
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY
MARKET
PORTFOLIO
June 30 December 31
------------- -------------
1997 1996
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ............ $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) .................. 0.03 0.05
Net realized and unrealized gain (loss)
on investments .............................. 0.00 0.00
--------- ---------
Total income (loss) from operations ......... 0.03 0.05
--------- ---------
Distributions:
Dividends from net investment income ......... (0.03) (0.05)
Dividends in excess of net investment income 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00
--------- ---------
Total distributions ........................ (0.03) (0.05)
--------- ---------
Net asset value, end of period .................. $ 1.00 $ 1.00
========= =========
Total return (a) .............................. 2.56% 5.03%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 130,553 $ 122,114
Ratio of expenses to average net assets (b) ... 0.46% 0.52%
Ratio of net investment income (loss)
to average net assets (b) ..................... 5.11% 5.03%
Average commission rate paid per share ...... N/A N/A
Portfolio turnover rate (a) .................. N/A N/A
<CAPTION>
MONEY MARKET PORTFOLIO
December 31
1995 1994 1993 1992
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) .................. 0.05 0.04 0.02 0.03
Net realized and unrealized gain (loss)
on investments .............................. 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
Total income (loss) from operations ......... 0.05 0.04 0.02 0.03
--------- --------- --------- ---------
Distributions:
Dividends from net investment income ......... (0.05) (0.04) (0.02) (0.03)
Dividends in excess of net investment income 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 0.00 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
Total distributions ........................ (0.05) (0.04) (0.02) (0.03)
--------- --------- --------- ---------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total return (a) .............................. 5.40% 3.44% 2.45% 3.03%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 80,544 $ 93,081 $ 45,782 $ 45,600
Ratio of expenses to average net assets (b) ... 0.56% 0.60% 0.66% 0.70%
Ratio of net investment income (loss)
to average net assets (b) ..................... 5.30% 3.59% 2.41% 2.99%
Average commission rate paid per share ...... N/A N/A N/A N/A
Portfolio turnover rate (a) .................. N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND PORTFOLIO
June 30 December 31
----------- -------------------------
1997 1996 1995
----------- ----------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 10.71 $ 11.35 $ 9.80
Income from operations:
Net investment income (loss) .................. 0.32 0.64 0.69
Net realized and unrealized gain (loss)
on investments .............................. (0.12) (0.64) 1.55
--------- --------- -----------
Total income (loss) from operations ......... 0.20 0.00 2.24
--------- --------- -----------
Distributions:
Dividends from net investment income ......... (0.12) (0.64) (0.69)
Dividends in excess of net investment income 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
--------- --------- -----------
Total distributions ........................ (0.12) (0.64) (0.69)
--------- --------- -----------
Net asset value, end of period .................. $ 10.79 $ 10.71 $ 11.35
========= ========= ===========
Total return (a) .............................. 1.90% 0.14% 22.99%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 93,792 $ 95,759 $ 96,972
Ratio of expenses to average net assets (b) ... 0.64% 0.64% 0.61%
Ratio of net investment income (loss)
to average net assets (b) ..................... 6.03% 5.96% 6.45%
Average commission rate paid per share ...... N/A N/A N/A
Portfolio turnover rate (a) .................. 136.14% 187.72% 120.54%
<CAPTION>
BOND PORTFOLIO
December 31
1994 1993 1992
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 11.24 $ 11.18 $ 11.18
Income from operations:
Net investment income (loss) .................. 0.63 0.72 0.75
Net realized and unrealized gain (loss)
on investments .............................. (1.44) 0.95 0.32
-------------- ------------ ------------
Total income (loss) from operations ......... (0.81) 1.67 1.07
-------------- ------------ ------------
Distributions:
Dividends from net investment income ......... (0.63) (0.72) (0.75)
Dividends in excess of net investment income 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 (0.89) (0.32)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
-------------- ------------ ------------
Total distributions ........................ (0.63) (1.61) (1.07)
-------------- ------------ ------------
Net asset value, end of period .................. $ 9.80 $ 11.24 $ 11.18
============== ============ ============
Total return (a) .............................. (6.94%) 13.38% 6.79%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 71,064 $ 90,715 $ 56,820
Ratio of expenses to average net assets (b) ... 0.59% 0.64% 0.70%
Ratio of net investment income (loss)
to average net assets (b) ..................... 5.94% 5.94% 6.49%
Average commission rate paid per share ...... N/ N/ N/
Portfolio turnover rate (a) .................. 131.73% 149.02% 80.73%
</TABLE>
The notes to the financial statements are an integral part of this report.
80
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH
PORTFOLIO
June 30 December 31
--------------- ---------------
1997 1996
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ............ $ 35.00 $ 31.66
Income from operations:
Net investment income (loss) .................. 0.19 0.34
Net realized and unrealized gain (loss)
on investments .............................. 3.85 5.35
----------- -----------
Total income (loss) from operations ......... 4.04 5.69
----------- -----------
Distributions:
Dividends from net investment income ......... (0.05) (0.35)
Dividends in excess of net investment income 0.00 (0.01)
Distributions from net realized gains
on investments .............................. (0.27) (1.99)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00
----------- -----------
Total distributions ........................ (0.32) (2.35)
----------- -----------
Net asset value, end of period .................. $ 38.72 $ 35.00
=========== ===========
Total return (a) .............................. 11.51% 17.96%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 1,719,347 $ 1,527,409
Ratio of expenses to average net assets (b) ... 0.86% 0.88%
Ratio of net investment income (loss)
to average net assets (b) ..................... 1.04% 0.98%
Average commission rate paid per share ...... $ 0.0456 $ 0.0493
Portfolio turnover rate (a) .................. 50.36% 45.21%
<CAPTION>
GROWTH PORTFOLIO
December 31
1995 1994 1993 1992
----------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 23.81 $ 26.25 $ 25.83 $ 26.26
Income from operations:
Net investment income (loss) .................. 0.26 0.22 0.28 0.36
Net realized and unrealized gain (loss)
on investments .............................. 10.97 (2.41) 0.79 0.52
------------- -------------- ----------- -----------
Total income (loss) from operations ......... 11.23 (2.19) 1.07 0.88
------------- -------------- ----------- -----------
Distributions:
Dividends from net investment income ......... (0.24) (0.22) (0.28) (0.36)
Dividends in excess of net investment income 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (3.14) 0.00 (0.37) (0.95)
Distributions in excess of net realized gains
on investments .............................. 0.00 (0.03) 0.00 0.00
------------- -------------- ----------- -----------
Total distributions ........................ (3.38) (0.25) (0.65) (1.31)
------------- -------------- ----------- -----------
Net asset value, end of period .................. $ 31.66 $ 23.81 $ 26.25 $ 25.83
============= ============== =========== ===========
Total return (a) .............................. 47.12% (8.31%) 3.97% 2.35%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 1,195,174 $ 814,383 $ 934,810 $ 711,422
Ratio of expenses to average net assets (b) ... 0.86% 0.84% 0.87% 0.86%
Ratio of net investment income (loss)
to average net assets (b) ..................... 0.90% 0.88% 1.07% 1.44%
Average commission rate paid per share ...... N/ N/ N/ N/
Portfolio turnover rate (a) .................. 130.48% 107.33% 77.91% 77.70%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT PORTFOLIO
June 30 December 31
----------- -------------------------
1997 1996 1995
----------- ----------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 10.24 $ 10.42 $ 9.72
Income from operations:
Net investment income (loss) .................. 0.28 0.56 0.60
Net realized and unrealized gain (loss)
on investments .............................. (0.02) (0.21) 0.70
------- ------- -----------
Total income (loss) from operations ......... 0.26 0.35 1.30
------- ------- -----------
Distributions:
Dividends from net investment income ......... (0.12) (0.53) (0.60)
Dividends in excess of net investment income 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
------- ------- -----------
Total distributions ........................ (0.12) (0.53) (0.60)
------- ------- -----------
Net asset value, end of period .................. $ 10.38 $ 10.24 $ 10.42
======= ======= ===========
Total return (a) .............................. 2.51% 3.48% 13.54%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $25,574 $26,098 $ 23,588
Ratio of expenses to average net assets (b) ... 0.75% 0.76% 0.78%
Ratio of net investment income (loss)
to average net assets (b) ..................... 5.53% 5.43% 5.84%
Average commission rate paid per share ...... N/A N/A N/A
Portfolio turnover rate (a) .................. 22.25% 58.15% 51.82%
<CAPTION>
SHORT-TO-INTERMEDIATE GOVERNMENT PORTFOLIO
December 31
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 10.30 $ 10.02 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.50 0.36 0.02
Net realized and unrealized gain (loss)
on investments .............................. (0.58) 0.29 0.02
-------------- ------------ ------------
Total income (loss) from operations ......... (0.08) 0.65 0.04
-------------- ------------ ------------
Distributions:
Dividends from net investment income ......... (0.50) (0.35) (0.02)
Dividends in excess of net investment income 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 (0.02) 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
-------------- ------------ ------------
Total distributions ........................ (0.50) (0.37) (0.02)
-------------- ------------ ------------
Net asset value, end of period .................. $ 9.72 $ 10.30 $ 10.02
============== ============ ============
Total return (a) .............................. (0.43%) 4.58% 0.45%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 20,356 $ 24,864 $ 2,509
Ratio of expenses to average net assets (b) ... 0.81% 1.00% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... 4.95% 3.44% 3.24%
Average commission rate paid per share ...... N/ N/ N/A
Portfolio turnover rate (a) .................. 93.70% 28.64% 0.00%
</TABLE>
The notes to the financial statements are an integral part of this report.
81
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL PORTFOLIO
June 30 December 31
------------- ----------------------------
1997 1996 1995
------------- ------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 18.12 $ 15.52 $ 13.12
Income from operations:
Net investment income (loss) .................. 0.08 0.08 0.10
Net realized and unrealized gain (loss)
on investments .............................. 2.99 4.20 2.91
--------- --------- ----------
Total income (loss) from operations ......... 3.07 4.28 3.01
--------- --------- ----------
Distributions:
Dividends from net investment income ......... (0.13) (0.04) 0.00
Dividends in excess of net investment income 0.00 (0.17) 0.00
Distributions from net realized gains
on investments .............................. (0.17) (1.47) (0.61)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
--------- --------- ----------
Total distributions ........................ (0.30) (1.68) (0.61)
--------- --------- ----------
Net asset value, end of period .................. $ 20.89 $ 18.12 $ 15.52
========= ========= ==========
Total return (a) .............................. 16.97% 27.74% 23.06%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 726,776 $ 534,820 $ 289,506
Ratio of expenses to average net assets (b) ... 0.94% 0.99% 0.99%
Ratio of net investment income (loss)
to average net assets (b) ..................... 0.86% 0.46% 0.75%
Average commission rate paid per share ...... $ 0.0095 $ 0.0154 N/
Portfolio turnover rate (a) .................. 42.35% 88.31% 130.60%
<CAPTION>
GLOBAL PORTFOLIO
December 31
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 13.62 $ 10.16 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.10 0.04 (0.02)
Net realized and unrealized gain (loss)
on investments .............................. 0.10 3.72 0.18
---------- ------------ --------------
Total income (loss) from operations ......... 0.20 3.76 0.16
---------- ------------ --------------
Distributions:
Dividends from net investment income ......... (0.10) (0.04) 0.00
Dividends in excess of net investment income (0.01) 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.56) (0.26) 0.00
Distributions in excess of net realized gains
on investments .............................. (0.03) 0.00 0.00
---------- ------------ --------------
Total distributions ........................ (0.70) (0.30) 0.00
---------- ------------ --------------
Net asset value, end of period .................. $ 13.12 $ 13.62 $ 10.16
========== ============ ==============
Total return (a) .............................. 0.25% 35.05% 1.62%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 261,778 $ 99,094 $ 508
Ratio of expenses to average net assets (b) ... 1.01% 1.09% 2.48%
Ratio of net investment income (loss)
to average net assets (b) ..................... 0.73% 0.30% (2.23%)
Average commission rate paid per share ...... N/ N/ N/A
Portfolio turnover rate (a) .................. 192.06% 79.93% 0.00%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN PORTFOLIO (J)
June 30 December 31
------------- ----------------------------------------------------------
1997 1996 1995 1994 1993 (d)
------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 13.97 $ 12.86 $ 10.90 $ 11.23 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.18 0.37 0.37 0.31 0.19
Net realized and unrealized gain (loss)
on investments .............................. 1.74 1.56 2.33 (0.33) 1.33
--------- --------- ----------- ------------- ------------
Total income (loss) from operations ......... 1.92 1.93 2.70 (0.02) 1.52
--------- --------- ----------- ------------- ------------
Distributions:
Dividends from net investment income ......... (0.02) (0.32) (0.37) (0.31) (0.19)
Dividends in excess of net investment income 0.00 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.04) (0.50) (0.37) 0.00 (0.10)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00 0.00
--------- --------- ----------- ------------- ------------
Total distributions ........................ (0.06) (0.82) (0.74) (0.31) (0.29)
--------- --------- ----------- ------------- ------------
Net asset value, end of period .................. $ 15.83 $ 13.97 $ 12.86 $ 10.90 $ 11.23
========= ========= =========== ============= ============
Total return (a) .............................. 13.75% 15.00% 24.66% (0.53%) 13.49%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 473,397 $ 390,141 $ 256,806 $ 183,867 $ 90,560
Ratio of expenses to average net assets (b) ... 0.87% 0.91% 0.87% 0.89% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... 2.43% 2.72% 3.07% 2.78% 1.70%
Average commission rate paid per share ...... $ 0.0598 $ 0.0582 N/ N/ N/A
Portfolio turnover rate (a) .................. 23.06% 49.32% 52.59% 53.50% 27.41%
</TABLE>
The notes to the financial statements are an integral part of this report.
82
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH PORTFOLIO
June 30 December 31
------------- ----------------------------------------------------------
1997 1996 1995 1994 1993 (d)
------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 18.46 $ 16.25 $ 11.55 $ 12.47 $ 10.00
Income from operations:
Net investment income (loss) .................. (0.02) (0.04) 0.01 0.01 (0.04)
Net realized and unrealized gain (loss)
on investments .............................. 1.61 3.10 5.42 (0.92) 2.51
----------- ----------- ---------- ------------- -------------
Total income (loss) from operations ......... 1.59 3.06 5.43 (0.91) 2.47
----------- ----------- ---------- ------------- -------------
Distributions:
Dividends from net investment income ......... 0.00 0.00 0.00 (0.01) 0.00
Dividends in excess of net investment income 0.00 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.11) (0.85) (0.73) 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00 0.00
----------- ----------- ---------- ------------- -------------
Total distributions ........................ (0.11) (0.85) (0.73) (0.01) 0.00
----------- ----------- ---------- ------------- -------------
Net asset value, end of period .................. $ 19.94 $ 18.46 $ 16.25 $ 11.55 $ 12.47
=========== =========== ========== ============= =============
Total return (a) .............................. 8.62% 18.88% 46.79% (7.36%) 24.71%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 497,750 $ 431,454 $ 288,519 $ 182,650 $ 102,472
Ratio of expenses to average net assets (b) ... 0.92% 0.94% 0.91% 0.92% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... (0.18%) (0.24%) 0.03% 0.06% (0.30%)
Average commission rate paid per share ...... $ 0.0580 $ 0.0565 N/ N/ N/A
Portfolio turnover rate (a) .................. 53.74% 80.02% 124.13% 72.62% 12.79%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
June 30 December 31
------------- -----------------------------------------
1997 1996 1995 1994 (e)
------------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 14.18 $ 13.25 $ 9.86 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.00 (0.01) (0.06) 0.02
Net realized and unrealized gain (loss)
on investments .............................. 2.10 1.38 3.96 (0.14)
----------- ---------- ------------ -------------
Total income (loss) from operations ......... 2.10 1.37 3.90 (0.12)
----------- ---------- ------------ -------------
Distributions:
Dividends from net investment income ......... 0.00 0.00 0.00 (0.02)
Dividends in excess of net investment income 0.00 (0.19) 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.10) (0.25) (0.51) 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00
----------- ---------- ------------ -------------
Total distributions ........................ (0.10) (0.44) (0.51) (0.02)
----------- ---------- ------------ -------------
Net asset value, end of period .................. $ 16.18 $ 14.18 $ 13.25 $ 9.86
=========== ========== ============ =============
Total return (a) .............................. 14.83% 10.45% 38.02% (1.26%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 276,113 $220,552 $ 158,534 $ 38,826
Ratio of expenses to average net assets (b) ... 0.96% 0.98% 1.07% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... (0.03%) (0.10%) (0.48%) (0.20%)
Average commission rate paid per share ...... $ 0.0698 $ 0.0708 N/A N/A
Portfolio turnover rate (a) .................. 63.64% 101.28% 108.04% 89.73%
</TABLE>
The notes to the financial statements are an integral part of this report.
83
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
June 30 December 31
----------- ----------------------------------------
1997 1996 1995 1994 (e)
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 11.39 $ 10.63 $ 9.24 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.19 0.34 0.44 0.34
Net realized and unrealized gain (loss)
on investments .............................. 0.72 0.80 1.38 (0.76)
------- ------- ---------- -------------
Total income (loss) from operations ......... 0.91 1.14 1.82 (0.42)
------- ------- ---------- -------------
Distributions:
Dividends from net investment income ......... (0.06) (0.28) (0.43) (0.34)
Dividends in excess of net investment income 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.09) (0.10) 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00
------- ------- ---------- -------------
Total distributions ........................ (0.15) (0.38) (0.43) (0.34)
------- ------- ---------- -------------
Net asset value, end of period .................. $ 12.15 $ 11.39 $ 10.63 $ 9.24
======= ======= ========== =============
Total return (a) .............................. 7.85% 10.72% 19.80% (5.73%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $60,916 $49,331 $ 31,114 $ 19,422
Ratio of expenses to average net assets (b) ... 0.93% 0.97% 0.97% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... 3.22% 3.14% 4.38% 4.27%
Average commission rate paid per share ...... $0.0014 $0.0024 N/A N/A
Portfolio turnover rate (a) .................. 26.96% 76.90% 98.55% 57.73%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME PORTFOLIO (K)
June 30 December 31
----------- ----------------------------------------
1997 1996 1995 1994 (e)
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 11.76 $ 11.12 $ 9.30 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.22 0.42 0.46 0.43
Net realized and unrealized gain (loss)
on investments .............................. 0.84 0.87 1.93 (0.70)
------- ------- ---------- -------------
Total income (loss) from operations ......... 1.06 1.29 2.39 (0.27)
------- ------- ---------- -------------
Distributions:
Dividends from net investment income ......... (0.03) (0.33) (0.46) (0.43)
Dividends in excess of net investment income 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.16) (0.32) (0.11) 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00
------- ------- ---------- -------------
Total distributions ........................ (0.19) (0.65) (0.57) (0.43)
------- ------- ---------- -------------
Net asset value, end of period .................. $ 12.63 $ 11.76 $ 11.12 $ 9.30
======= ======= ========== =============
Total return (a) .............................. 8.93% 11.64% 25.25% (4.58%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $44,871 $38,115 $ 24,607 $ 10,482
Ratio of expenses to average net assets (b) ... 0.95% 1.00% 1.00% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... 3.74% 3.73% 4.56% 5.36%
Average commission rate paid per share ...... $0.0435 $0.0433 N/A N/A
Portfolio turnover rate (a) .................. 50.93% 68.53% 78.34% 36.13%
</TABLE>
The notes to the financial statements are an integral part of this report.
84
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TACTICAL
ASSET ALLOCATION
PORTFOLIO
June 30 December 31
------------- ----------------------------
1997 1996 1995 (f)
------------- ------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 12.61 $ 11.49 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.17 0.33 0.41
Net realized and unrealized gain (loss)
on investments .............................. 0.91 1.33 1.93
--------- --------- -----------
Total income (loss) from operations ......... 1.08 1.66 2.34
--------- --------- -----------
Distributions:
Dividends from net investment income ......... (0.03) (0.30) (0.41)
Dividends in excess of net investment income 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. (0.09) (0.24) (0.44)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
--------- --------- -----------
Total distributions ........................ (0.12) (0.54) (0.85)
--------- --------- -----------
Net asset value, end of period .................. $ 13.57 $ 12.61 $ 11.49
========= ========= ===========
Total return (a) .............................. 8.53% 14.42% 20.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 262,519 $ 206,172 $ 120,531
Ratio of expenses to average net assets (b) ... 0.86% 0.90% 0.93%
Ratio of net investment income (loss)
to average net assets (b) ..................... 2.63% 2.78% 3.76%
Average commission rate paid per share ...... $ 0.0221 $ 0.0050 N/A
Portfolio turnover rate (a) .................. 30.08% 98.97% 38.68%
<CAPTION>
C.A.S.E. GROWTH
PORTFOLIO
June 30 December 31
----------- --------------------------
1997 1996 1995 (g)
----------- ----------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............ $ 13.42 $ 11.66 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.04 0.12 0.12
Net realized and unrealized gain (loss)
on investments .............................. 0.65 1.92 2.49
--------- --------- ------------
Total income (loss) from operations ......... 0.69 2.04 2.61
--------- --------- ------------
Distributions:
Dividends from net investment income ......... (0.01) (0.05) (0.12)
Dividends in excess of net investment income 0.00 0.00 0
Distributions from net realized gains
on investments .............................. (0.07) (0.23) (0.83)
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00
--------- --------- ------------
Total distributions ........................ (0.08) (0.28) (0.95)
--------- --------- ------------
Net asset value, end of period .................. $ 14.03 $ 13.42 $ 11.66
========= ========= ============
Total return (a) .............................. 5.19% 17.50% 20.65%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 38,283 $ 26,560 $ 2,578
Ratio of expenses to average net assets (b) ... 1.00% 1.00% 1.00%
Ratio of net investment income (loss)
to average net assets (b) ..................... 0.63% 0.94% 1.02%
Average commission rate paid per share ...... $ 0.0600 $ 0.0604 N/A
Portfolio turnover rate (a) .................. 110.17% 160.27% 121.62%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
GLOBAL SECTOR VALUE EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
June 30 December 31 June 30 December 31 June 30 June 30
----------- ------------- ------------- ------------- --------------- ----------
1997 1996 (h) 1997 1996 (h) 1997 (i) 1997 (i)
----------- ------------- ------------- ------------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 10.55 $ 10.00 $ 11.27 $ 10.00 $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) .................. 0.10 0.06 0.07 0.10 0.09 $ 0.07
Net realized and unrealized gain (loss)
on investments .............................. 0.61 0.55 1.58 1.23 1.25 $ 1.43
------- ------- --------- ------- ------- -------
Total income (loss) from operations ......... 0.71 0.61 1.65 1.33 1.34 1.50
------- ------- --------- ------- ------- -------
Distributions:
Dividends from net investment income ......... (0.03) (0.02) (0.01) (0.04) 0.00 0.00
Dividends in excess of net investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net realized gains
on investments .............................. 0.00 (0.04) 0.00 (0.02) 0.00 0.00
Distributions in excess of net realized gains
on investments .............................. 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- --------- ------- ------- -------
Total distributions ........................ (0.03) (0.06) (0.01) (0.06) 0.00 0.00
------- ------- --------- ------- ------- -------
Net asset value, end of period .................. $ 11.23 $ 10.55 $ 12.91 $ 11.27 $ 11.34 $ 11.50
======= ======= ========= ======= ======= =======
Total return (a) .............................. 6.44% 6.08% 14.66% 13.19% 13.44% 14.99%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $11,069 $ 6,986 $ 114,430 $49,394 $12,005 $19,209
Ratio of expenses to average net assets (b) ... 1.29% 2.37% 0.92% 1.00% 1.50% 1.30%
Ratio of net investment income (loss)
to average net assets (b) ..................... 2.01% 0.62% 1.11% 0.89% 1.60% 1.24%
Average commission rate paid per share ...... $0.0640 $0.0313 $ 0.0629 $0.0696 $0.0276 $0.0327
Portfolio turnover rate (a) .................. 32.87% 27.58% 10.13% 7.93% 12.72% 25.58%
</TABLE>
The notes to the financial statements are an integral part of this report.
85
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
* The above tables illustrate the change for a share outstanding computed
using average shares outstanding throughout each period.
See Notes to Financial Highlights on page and Note 6.
(a) For periods of less than one year the total return and portfolio turnover
are not annualized.
(b) For periods of less than one year the ratio of expenses to average net
assets and the ratio of net investment income to average net assets are
annualized.
(c) The inception date of this portfolio was December 3, 1992
(d) The inception date of this portfolio was March 1, 1993
(e) The inception date of this portfolio was March 1, 1994
(f) The inception date of this portfolio was January 3, 1995
(g) The inception date of this portfolio was May 1, 1995
(h) The inception date of this portfolio was May 1, 1996
(i) The inception date of this portfolio was January 2, 1997
(j) Prior to May 1, 1997, this portfolio was named the Equity-Income Portfolio
(k) Prior to May 1, 1997, this portfolio was named the Utility Portfolio
The notes to the financial statements are an integral part of this report.
86
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
June 30, 1997
NOTE 1 -- ORGANIZATION AND SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
THE WRL SERIES FUND, INC. ("FUND") IS A DIVERSIfied, open-end, investment
management company registered under the Investment Company Act of 1940, as
amended. The Fund was incorporated on August 21, 1985, as a Maryland
corporation and commenced operations with three Portfolios on October 2, 1986:
Money Market, Bond, and Growth (each with different investment objectives).
From inception of the Fund until June 30, 1992, shares were sold exclusively to
the WRL Series Life Account (the "Life Account") and the WRL Series Annuity
Account (the "Annuity Account"), collectively called the Separate Accounts of
Western Reserve Life Assurance Co. of Ohio ("WRL"), to fund benefits under
variable universal life insurance policies and variable annuity contracts
issued by WRL.
Since the initial three Portfolio offerings, additional Portfolios have
been added.
<TABLE>
<CAPTION>
PORTFOLIO INCEPTION
- ---------------------------------- -----------------
<S> <C>
Short-to-Intermediate Government December 3, 1992
Global December 3, 1992
Strategic Total Return (a) March 1, 1993
Emerging Growth March 1, 1993
Aggressive Growth March 1, 1994
Balanced March 1, 1994
Growth & Income (b) March 1, 1994
Tactical Asset Allocation January 3, 1995
C.A.S.E. Growth May 1, 1995
Global Sector May 1, 1996
Value Equity May 1, 1996
International Equity January 2, 1997
U.S. Equity January 2, 1997
</TABLE>
On January 2, 1997, WRL supplied seed capital as follows:
<TABLE>
<CAPTION>
PORTFOLIO CONTRIBUTION
- ---------------------- -------------
<S> <C>
International Equity $ 1,000,000
U.S. Equity $ 500,000
</TABLE>
(a) Prior to May 1, 1997, this portfolio was named Equity-Income.
(b) Prior to May 1, 1997, this portfolio was named Utility.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
A. VALUATION OF INVESTMENT
The Board of Directors has determined that the most appropriate method
for valuing the securities of the Money Market Portfolio is the amortized
cost basis. Under this method, the net asset value of the Money Market
Portfolio shares is expected to remain at a constant $1.00 per share,
although there can be no assurance that this will be achieved.
Securities held by the remaining Portfolios are valued at market value,
except for short-term debt securities. Short-term debt securities
maturing in 60 days or less are valued on the amortized cost basis, which
approximates market value. Stocks are valued at the latest sale price on
the last business day of the fiscal period and reported by the principal
securities exchange on which the issue is traded or, if no sale is
reported for a stock, the latest bid price is used. Bonds are valued
using prices quoted by a major dealer in bonds which offers a pricing
service. Certain pricing methodologies, such as matrix pricing of bonds,
may differ. Securities for which quotations may not be readily available
are valued as determined in good faith in accordance with procedures
established by and under the general supervision of the Fund's Board of
Directors.
The value of foreign securities are translated into U.S. dollars using
foreign exchange spot rates.
B. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Security gains and
losses are calculated on the first-in, first-out basis for both tax and
financial reporting purposes. Dividend income is recorded on the
ex-dividend date, and interest income, including amortization of bond
premium and accretion of discount, is accrued daily. Dividend income on
foreign securities is recorded net of foreign tax expense.
The accounting records of the Fund are maintained in U.S. dollars. For
transactions denominated in a
87
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 (CONTINUED)
currency other than the U. S. dollar, purchases and sales of securities,
income received, and expenses paid are translated into U.S. dollars at
the foreign exchange spot rate on the date the transaction is recorded.
Currency gain and loss is also calculated on payables and receivables
that are denominated in foreign currencies. The payables and receivables
are generally related to security transactions and income.
The unrealized gain or loss on forward foreign currency contracts is due
to the difference between the foreign exchange contract rate and the
foreign exchange forward rate applicable to that contract at the end of
the period. This gain or loss becomes realized when the contract is
closed or settled.
Futures contracts and options are valued based upon daily settlement
prices with the fluctuations in value recorded as unrealized gains and
losses. These gains and losses become realized when the position is
closed. The risks associated with the use of options and futures
contracts involve the possibilities of an illiquid market and an
imperfect correlation between the value of the instrument and the
underlying security.
C. SECURITIES LENDING
At June 30, 1997, securities with an aggregate market value of
$ 455,522,542 had been loaned under agreements whereby the Fund received
cash collateral in the amount of $ 483,819,516. The Fund derives income
from its securities lending activities. During the six months ended June
30, 1997, the following amounts of income, net of related expenses,
resulted from securities lending activities:
<TABLE>
<CAPTION>
MARKET
PORTFOLIO VALUE INCOME
- -------------------------------- -------------- ---------
<S> <C> <C>
Bond $ 7,596,539 34,657
Growth 91,871,886 196,902
Short-to-Intermediate
Government 2,523,255 1,521
Global 124,084,021 298,819
Strategic Total Return 44,852,735 19,546
Emerging Growth 110,554,461 163,055
Aggressive Growth 30,976,139 33,490
Balanced 10,604,500 16,752
Growth & Income 6,193,854 5,073
Tactical Asset Allocation 26,265,152 27,148
</TABLE>
D. FEDERAL INCOME TAXES
It is the Fund's policy to distribute substantially all of its taxable
income and capital gains to its shareholders and otherwise qualify as a
regulated investment company under the Internal Revenue Code. Pursuant to
Code Section 4982(f), regulated investment companies serving as funding
vehicles for life insurance company separate accounts are not subject to
excise tax distribution requirements. Accordingly, no provision for
Federal income taxes has been made.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for such items as wash sales, foreign currency
transactions, net operating losses and capital loss carryforwards.
E. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Money Market Portfolio are declared daily and reinvested
monthly. Dividends of the remaining Portfolios are typically declared and
reinvested semi-annually, while capital gain distributions are typically
declared and reinvested annually. Dividends and distributions of the Fund
are generally paid to and reinvested by the Separate Accounts on the next
business day after declaration.
F. ORGANIZATION COSTS
All costs incurred in connection with the formation of the Fund and its
Portfolios were paid by WRL.
G. EXPENSE OFFSET ARRANGEMENT
Fees paid indirectly, in the accompanying Statement of Operations,
represent reductions in custody expenses in lieu of interest income
earned on incidental uninvested cash balances. Such fees have been added
to custody fees to reflect total Fund expenses.
NOTE 2 -- INVESTMENT ADVISORY AND
TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY
The Fund has entered into an annually renewable investment advisory
agreement on behalf of each
88
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2 (CONTINUED)
Portfolio with WRL Investment Management, Inc. as investment adviser. The
investment adviser is a direct, wholly-owned subsidiary of WRL. The Fund
pays to WRL Investment Management, Inc., and charges to each respective
Portfolio, advisory fees each month at the following annual rate
expressed as a percentage of the average daily net assets of the
respective Portfolio:
<TABLE>
<CAPTION>
PERCENT
PORTFOLIO OF ASSETS
- --------------------------------------- ----------
<S> <C>
Money Market .40%
Bond .50%
Growth .80%
Short-to-Intermediate Government .60%
Global .80%
Strategic Total Return .80%
Emerging Growth .80%
Aggressive Growth .80%
Balanced .80%
Growth & Income .75%
Tactical Asset Allocation .80%
C.A.S.E. Growth .80%
Global Sector .80%
Value Equity .80%
International Equity 1.00%
U.S. Equity .80%
</TABLE>
WRL Investment Management, Inc. has entered into a sub-advisory agreement
with various management companies ("Sub-Advisers"). Pursuant to each
agreement, fifty percent of the advisory fee paid to WRL Investment
Management, Inc. is due the respective Sub-Adviser for the following
Portfolios:
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- ---------------------- ----------------------------
<S> <C>
Bond Janus Capital Corporation
("JCC")
Growth JCC
Global JCC
Strategic Total Luther King Capital
Return Management Corp.
Aggressive Fred Alger Management, Inc.
Growth
C.A.S.E. Growth C.A.S.E. Management, Inc.
</TABLE>
Pursuant to other sub-advisory agreements, fifty percent of the advisory
fee paid to WRL Investment Management, Inc. less fifty percent of any
expense reimbursement is due the respective Sub-Adviser for the following
Portfolios:
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- ---------------------------- ---------------------
<S> <C>
Short-to-Intermediate AEGON USA Investment
Government Management, Inc.
("AIMI")
Emerging Growth Van Kampen American
Capital Asset
Management, Inc.
Balanced AIMI
Tactical Asset Dean Investment
Allocation Associates
Value Equity NWQ Investment
Management, Inc.
International Equity Scottish Equitable
Investment
Management
Ltd.; and G.E.
Investment
Management
Incorporated
U.S. Equity G.E. Investment
Management
Incorporated
</TABLE>
Pursuant to the Money Market Portfolio agreement, 0.15% of the average
daily net assets is payable to J.P. Morgan Investment Management Inc.
Pursuant to the Growth & Income Portfolio agreement, 0.50% of the first
$ 30 million of average daily net assets, 0.35% of the next $ 20 million
of average daily net assets and 0.25% of average daily net assets in
excess of $ 50 million, is payable to Federated Investment Counseling.
Pursuant to the Global Sector Portfolio agreement, Meridian Investment
Management Corporation ("Meridian") receives monthly compensation from
the investment adviser, at 0.40% of the Portfolio's average daily net
assets. At the meeting of Shareholders for the Portfolio on June 16,
1997, new advisory and sub-advisory agreements for the Global Sector
Portfolio was approved. The new agreements are identical to the previous
agreements except for the change in advisory and sub-advisory fees.
Effective June 17, 1997 the advisory fee is 0.80% of the Portfolio's
average daily net assets and the sub-advisory fee is payable to Meridian
by the investment adviser, 0.40% of the Portfolio's average daily net
assets. Prior to June 17, 1997,
89
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2 (CONTINUED)
the advisory fee was 1.10% of the Portfolio's average daily net assets
and the sub-advisory fee was 0.70% of the Portfolio's average daily net
assets.
Prior to March 1, 1997, INVESCO Global Asset Management Limited
("INVESCO") served as a co-sub-adviser to the Global Sector Portfolio;
for periods prior to that date, INVESCO received monthly compensation
from the investment adviser at the annual rate of 0.40% of first $100
million average daily net assets of the Portfolio and 0.35% of assets in
excess of $100 million; and Meridian received monthly compensation from
the Investment Adviser at the annual rate of 0.30% of first $100 million
of average daily net assets of the Portfolio and 0.35% of assets in
excess of $100 million.
WRL Investment Management, Inc. has currently voluntarily undertaken to
pay expenses on behalf of a Portfolio to the extent a Portfolio's normal
operating expenses exceeds the percentage of average daily net assets on
an annualized basis of the Portfolio as listed below:
<TABLE>
<CAPTION>
PERCENT OF
PORTFOLIO NET ASSETS
- --------------------------------------- -----------
<S> <C>
Money Market .70%
Bond .70%
Growth 1.00%
Short-to-Intermediate Government 1.00%
Global 1.00%
Strategic Total Return 1.00%
Emerging Growth 1.00%
Aggressive Growth 1.00%
Balanced 1.00%
Growth & Income 1.00%
Tactical Asset Allocation 1.00%
C.A.S.E. Growth 1.00%
Value Equity 1.00%
International Equity 1.50%
U.S. Equity 1.30%
</TABLE>
The Portfolios are charged for expenses that specifically relate to their
individual operations. All other operating expenses of the Fund that are
not attributable to a specific portfolio are allocated based upon the
proportionate number of policy and contract owners of the underlying
sub-accounts. WRL Investment Services, Inc. directly incurs and pays
these operating expenses relating to the Fund, which subsequently
reimburses WRL Investment Services, Inc. All normal operating expenses
that exceed the established expense limit set forth above will be borne
by WRL Investment Services, Inc.
B. AFFILIATES
WRL Investment Management, Inc., WRL Investment Services, Inc. and WRL
are indirect wholly-owned subsidiaries of AEGON USA, Inc., which is,
along with Scottish Equitable Investment Management Ltd., indirect
wholly-owned subsidiaries of AEGON nv, a Netherlands corporation.
The Sub-Advisers may occasionally place portfolio business with
affiliated brokers of the Investment Adviser or a Sub-Adviser. Brokerage
commissions were paid to affiliated brokers of the Investment Advisor or
the Sub-Adviser during the six months ended June 30, 1997, as follows:
<TABLE>
<CAPTION>
PORTFOLIO COMMISSIONS
- ------------------------ ------------
<S> <C>
Aggressive Growth $ 303,386
</TABLE>
C. PLAN OF DISTRIBUTION
Effective January 1, 1997, the Fund adopted a Plan of Distribution
pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended ("Distribution Plan") and pursuant to the Plan, has entered into
a Distribution Agreement with InterSecurities, Inc. ("ISI").
Under the Distribution Plan, the Fund, on behalf of the Portfolios, is
authorized to pay to various service providers, as direct payment for
expenses incurred in connection with the distribution of a Portfolio's
shares, amounts equal to actual expenses associated with distributing
such Portfolio's shares, up to a maximum rate of 0.15% on an annualized
basis of the average daily net assets.
ISI has determined that it will not seek payment by the Fund of
distribution expenses incurred with respect to any Portfolio during
fiscal year ending December 31, 1997. Prior to ISI seeking reimbursement,
Policy and Contract Owners will be notified in advance.
D. DEFERRED COMPENSATION PLAN
Each eligible Director of the Fund who is not an officer or affiliated
person as defined under the
90
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2 (CONTINUED)
Investment Company Act of 1940, as amended, may elect to participate in
the Deferred Compensation Plan for Directors of the Fund (the "Plan").
Under the Plan, such Directors may elect to defer payment of a percentage
of their total fees earned as a Director of the Fund. These deferred
amounts may be invested in any portfolio of the IDEX Series Fund. It is
not anticipated that the Plan will have any impact on the Fund. Invested
plan amounts are included in other assets. The total liability for
deferred compensation to Directors under the Plan at June 30, 1997, is
included in other liabilities in the accompanying Statement of Assets and
Liabilities.
91
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 3 -- SECURITIES TRANSACTIONS
SECURITIES TRANSACTIONS ARE SUMMARIZED AS FOLLOWS:
<TABLE>
<CAPTION>
SHORT-TO-
INTERMEDIATE
MONEY MARKET BOND GROWTH GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
For the period ended June 30, 1997:
Purchase of securities:
Long-term excluding U.S. Government ......... $ 0 $ 76,059,765 $ 657,693,335 $ 1,253,103
U.S. Government securities .................. 502,748,939 86,503,559 606,642,491 28,370,068
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ......... 0 47,153,035 642,310,287 435,412
U.S. Government securities .................. 506,219,117 116,365,783 668,062,452 31,334,499
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC
TOTAL EMERGING AGGRESSIVE
GLOBAL RETURN GROWTH GROWTH
PORTFOLIO PORTFOLIO (A) PORTFOLIO PORTFOLIO
--------------- --------------- ---------------- --------------
<S> <C> <C> <C> <C>
For the period ended June 30, 1997:
Purchase of securities:
Long-term excluding U.S. Government ......... $ 378,710,327 $ 97,641,859 $ 232,982,416 $ 163,339,848
U.S. Government securities .................. 141,555,917 31,108,750 3,937,823,741 0
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ......... 254,106,745 77,510,568 227,352,589 146,385,749
U.S. Government securities .................. 139,082,455 17,719,219 3,972,415,000 0
</TABLE>
<TABLE>
<CAPTION>
TACTICAL
GROWTH & ASSET C.A.S.E.
BALANCED INCOME ALLOCATION GROWTH
PORTFOLIO PORTFOLIO (B) PORTFOLIO PORTFOLIO
-------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
For the period ended June 30, 1997:
Purchase of securities:
Long-term excluding U.S. Government ......... $ 17,346,745 $ 19,361,230 $ 90,140,030 $ 44,796,762
U.S. Government securities .................. 6,578,882 4,014,063 43,565,601 0
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ......... 11,253,279 20,006,939 39,786,395 30,049,793
U.S. Government securities .................. 3,134,649 0 25,763,766 0
</TABLE>
<TABLE>
<CAPTION>
VALUE INTERNATIONAL
GLOBAL SECTOR EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO (C) PORTFOLIO (C)
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
For the period ended June 30, 1997:
Purchase of securities:
Long-term excluding U.S. Government ......... $ 4,620,620 $ 49,990,373 $ 10,643,514 $ 17,825,284
U.S. Government securities .................. 1,698,417 12,832,067 0 295,494
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ......... 2,622,040 6,518,719 589,934 1,487,915
U.S. Government securities .................. 0 8,000,000 0 24,285
</TABLE>
(a) Prior to May 1, 1997, this portfolio was was named the Equity-Income
Portfolio.
(b) Prior to May 1, 1997, this portfolio was named the Utility Portfolio.
(c) The inception date of this portfolio was January 2, 1997.
92
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 4 -- FEDERAL INCOME TAX MATTERS
THE INCOME, EXPENSES, GAINS AND LOSSES ON SECURITY TRANSACTIONS ATTRIBUTED
TO EACH PORTFOLIO FOR ACCOUNTING PURposes are also attributed to that Portfolio
for Federal income tax purposes. Gains and losses on forward currency
contracts, if applicable, are treated as ordinary income for Federal income tax
purposes pursuant to Section 988 of the Internal Revenue Code.
Each Portfolio has and will continue to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies, and
accordingly, has made or intends to make sufficient distributions of net
investment income and net realized gains, if any, to relieve it from all
federal and state income taxes and federal excise taxes.
The net capital loss carryforwards noted below as of December 31, 1996, if
applicable, are available to offset future realized capital gains through the
periods listed. Each Portfolio will elect to treat the net capital losses
incurred in the two month period ended December 31, 1996, (Post-October Losses
Deferred), if applicable, as having been incurred in the following fiscal year.
The aggregate cost of investments and composition of unrealized appreciation
and depreciation for Federal income tax purposes as of June 30, 1997 are as
follows:
<TABLE>
<CAPTION>
PRIOR YEAR
POST-OCTOBER DECEMBER 31, 1996 NET CAPITAL LOSS
LOSSES NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO RECOGNIZED CARRYFORWARD AVAILABLE THROUGH:
- ---------------------------------------- -------------- ------------------- --------------------
<S> <C> <C> <C>
Money Market ........................... $ 0 $ 0 N/A
Bond ................................. 0 (5,921,207) December 31, 2002
Growth ................................. (233,731) 0 N/A
Short-to-Intermediate Government ...... (9,904) (355,979) $ 108,239 through
December 31, 2002
$ 247,740 through
December 31, 2003
Global ................................. (5,086) 0 N/A
Strategic Total Return ............... 0 0 N/A
Emerging Growth ........................ 0 0 N/A
Aggressive Growth ..................... (4,016,717) 0 N/A
Balanced .............................. (472,914) 0 N/A
Growth & Income ........................ 0 0 N/A
Tactical Asset Allocation ............ 0 0 N/A
C.A.S.E. Growth ........................ 0 0 N/A
Global Sector ........................ 0 0 N/A
Value Equity ........................... 0 0 N/A
International Equity .................. 0 0 N/A
U.S. Equity ........................... 0 0 N/A
</TABLE>
93
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 4 (CONTINUED)
<TABLE>
<CAPTION>
NET
UNREALIZED
FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO COST BASIS APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------- ---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Money Market ..................... $ 130,457,585 $ 0 $ 0 $ 0
Bond .............................. 92,660,943 507,995 (697,573) (189,578)
Growth ........................... 1,241,514,574 496,854,732 (8,852,610) 488,002,122
Short-to-Intermediate Government 25,245,646 168,421 (134,309) 34,112
Global ........................... 585,171,544 155,976,557 (11,876,560) 144,099,997
Strategic Total Return ............ 378,403,837 96,556,017 (2,608,867) 93,947,150
Emerging Growth .................. 364,886,519 134,283,941 (2,888,346) 131,395,595
Aggressive Growth ............... 227,840,530 56,156,450 (1,030,988) 55,125,462
Balanced ........................ 52,930,937 7,642,629 (625,749) 7,016,880
Growth & Income .................. 41,066,644 4,619,325 (358,615) 4,260,710
Tactical Asset Allocation ......... 238,497,812 29,257,888 (3,484,477) 25,773,411
C.A.S.E. Growth .................. 34,714,605 4,101,733 (873,298) 3,228,435
Global Sector ..................... 9,917,065 875,698 (178,941) 696,757
Value Equity ..................... 105,465,850 13,941,228 (791,785) 13,149,443
International Equity ............ 10,029,191 963,243 (126,843) 836,400
U.S. Equity ..................... 16,649,222 952,911 (125,894) 827,017
</TABLE>
NOTE 5 -- COMMITMENTS
THE FUND IS AUTHORIZED TO ENTER INTO FOREIGN EXCHANGE CONTRACTS FOR THE
PURPOSE OF HEDGING AGAINST FOREIGN exchange risk arising from a Portfolio's
investment in securities denominated in foreign currencies. All foreign
exchange contracts are marked-to-market daily at the applicable foreign
exchange rates and the resulting unrealized gains or losses recorded in the
Portfolio's financial statements. These gains and losses are realized when the
contract is extinguished either by entering into a closing transaction or by
delivery of the currency. The risks that may arise from these contracts are the
potential inability of the counterparties to meet the terms of their contracts,
and from unanticipated movements in the currency's value relative to the U.S.
dollar.
The Global, International Equity and U.S. Equity Portfolios entered into
forward foreign currency contracts, which obligate the Fund to deliver
currencies at specified future dates. The open contracts at June 30, 1997 are
as follows:
<TABLE>
<CAPTION>
JUNE 30, 1997 NET
VALUE IN UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- ---------------------- --------------- ------------ ------------------ ---------------
<S> <C> <C> <C> <C>
GLOBAL PORTFOLIO
Swiss Franc (10,000,000) 07/18/97 $ (6,862,042) $ 549,373
Swiss Franc (2,000,000) 08/04/97 (1,375,346) 55,884
Swiss Franc (10,000,000) 08/11/97 (6,882,294) 174,372
Swiss Franc 10,000,000 08/11/97 6,882,294 (59,741)
Swiss Franc (5,854,000) 11/12/97 (4,074,757) 121,658
Swiss Franc (400,636) 07/02/97 (274,348) 1,662
German Deutschemark (14,000,000) 07/17/97 (8,035,463) 882,302
German Deutschemark (17,372,000) 07/24/97 (9,976,340) 841,438
German Deutschemark (4,000,000) 07/24/97 (2,297,108) 169,744
German Deutschemark (4,500,000) 08/11/97 (2,587,664) 155,235
German Deutschemark 9,000,000 07/17/97 5,165,655 (123,640)
</TABLE>
94
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 (CONTINUED)
<TABLE>
<CAPTION>
JUNE 30, 1997 NET
VALUE IN UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------------------------- ------------------- ------------ ------------------- ---------------
<S> <C> <C> <C> <C>
GLOBAL PORTFOLIO
German Deutschemark (12,534,815) 07/01/97 (7,185,485) 80,443
Finnish Markka (13,400,000) 07/28/97 (2,587,192) 251,671
French Franc (55,000,000) 08/04/97 (9,377,304) 665,973
French Franc (32,000,000) 08/11/97 (5,458,329) 270,073
French Franc (7,425,000) 09/11/97 (1,269,057) 29,134
French Franc 8,133,838 07/31/97 1,386,436 (13,079)
British Pound (15,000,000) 07/24/97 (24,964,741) (388,741)
British Pound (11,200,000) 07/28/97 (18,638,130) (524,829)
British Pound 11,000,000 07/24/97 18,307,477 380,777
British Pound 717,808 07/01/97 1,195,474 (423)
British Pound 75,043 07/01/97 124,980 (44)
British Pound 34,733 07/01/97 57,846 (20)
British Pound 1,071,161 07/02/97 1,783,913 1,415
British Pound 637,446 07/02/97 1,061,604 842
British Pound 46,590 07/02/97 77,592 62
British Pound 31,031 07/02/97 51,679 41
Italian Lira 375,749,071 07/01/97 220,684 (2,339)
Italian Lira (1,178,075,594) 07/03/97 (691,855) 5,598
Italian Lira 363,641,411 07/02/97 213,565 (2,638)
Japanese Yen (1,245,000,000) 07/18/97 (10,900,571) 81,655
Japanese Yen (200,000,000) 09/11/97 (1,765,037) (79,321)
Japanese Yen (350,000,000) 11/04/97 (3,114,111) (286,514)
Japanese Yen (200,000,000) 11/04/97 (1,779,492) 15,357
Japanese Yen 200,000,000 11/04/97 1,779,492 8,248
Japanese Yen (350,000,000) 12/18/97 (3,135,456) 31,965
Dutch Guilder (27,000,000) 07/21/97 (13,769,539) 1,297,426
Dutch Guilder (27,000,000) 07/24/97 (13,772,699) 1,044,148
Dutch Guilder (5,000,000) 08/11/97 (2,553,741) 129,958
Dutch Guilder 27,000,000 07/21/97 13,769,539 (539,039)
Dutch Guilder (6,852,801) 07/01/97 (3,489,473) 39,625
Swedish Krona (99,000,000) 07/28/97 (12,811,465) 1,282,663
Swedish Krona (30,000,000) 07/23/97 (3,881,442) 385,983
South African Rand (4,090,000) 11/03/97 (901,775) (118,551)
South African Rand 700,000 11/03/97 154,338 4,621
--------------- -----------
Total Global Portfolio $ (132,179,691) $ 6,820,427
=============== ===========
</TABLE>
95
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 (CONTINUED)
<TABLE>
<CAPTION>
JUNE 30, 1997 NET
VALUE IN UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- ------------------------------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
INTERNATIONAL EQUITY PORTFOLIO
German Deutschemark (353,705) 07/28/97 $ (203,188) $ 7,075
Finnish Markka 1,471 07/01/97 283 (1)
Finnish Markka 2,949 07/01/97 568 (3)
Finnish Markka 481 07/01/97 93 0
Finnish Markka 481 07/01/97 93 0
Finnish Markka 22,245 07/01/97 4,285 (23)
Finnish Markka 461 07/01/97 89 0
Finnish Markka 3,540 07/01/97 682 (3)
Finnish Markka 3,335 07/01/97 642 (3)
Finnish Markka 1,909 07/01/97 368 (2)
Finnish Markka 3,807 07/01/97 733 (4)
Finnish Markka 2,767 07/01/97 533 (3)
------------ ---------
Total International Equity Portfolio $ (194,819) $ 7,033
============ =========
</TABLE>
<TABLE>
<CAPTION>
JUNE 30, 1997 NET
VALUE IN UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- ------------------------------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
U.S. EQUITY PORTFOLIO
Dutch Guilder 13,315 07/01/97 $ 6,780 $ (56)
-------- -------
Total U.S. Equity Portfolio $ 6,780 $ (56)
======== =======
</TABLE>
The U.S. Equity Portfolio entered into S&P 500 futures and contracts,
which obligate the Portfolio to settle variation margins in cash daily.
Securities with an aggregate market value of $ 281,650 have been segregated
with the custodian to cover margin requirements for the following open future
contracts at June 30, 1997:
<TABLE>
<CAPTION>
JUNE 30, 1997 NET
VALUE IN UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
TYPE CONTRACTS DATE BOUGHT (SOLD) (DEPRECIATION)
- ------------------------------- ----------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
S&P 500 index 3 09/19/97 $ 1,335,375 $ (16,025)
-----------
Total U.S. Equity Portfolio $ (16,025)
===========
</TABLE>
96
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 6 -- FINANCIAL HIGHLIGHTS
The total return set forth in "Financial Highlights" reflects the advisory
fee and all other Portfolio expenses and includes reinvestment of dividends and
capital gains; it does not reflect the charges against the corresponding sub-
accounts or the charges and deductions under the applicable Policies or Annuity
Contracts.
The ratio of expenses to average net assets in the Financial Highlights is
net of the advisory fee waiver (see Note 2). Without the advisory fee waived by
WRL the ratio for each period presented would be as follows:
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
----------- ---------------------------------------------------------------
PORTFOLIO 1997 1996 1995 1994 1993 1992
- ---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Money Market ........................... * * * * * *
Bond ................................. * * * * * *
Growth ................................. * * * * * *
Short-to-Intermediate Government ...... * * * * 1.02% 1.41%
Global .............................. * * * * * *
Strategic Total Return (a) ............ * * * * 1.12% **
Emerging Growth ..................... * * * * 1.16% **
Aggressive Growth ..................... * * * 1.18% ** **
Balanced .............................. * * * 1.34% ** **
Growth & Income (b) .................. * * 1.08% 1.90% ** **
Tactical Asset Allocation ............ * * * ** ** **
C.A.S.E. Growth ........................ 1.02% 1.64% 4.15% ** ** **
Global Sector ........................ N/A N/A ** ** ** **
Value Equity ........................... * 1.03% ** ** ** **
International Equity .................. 3.34% ** ** ** ** **
U.S. Equity ........................... 1.79% ** ** ** ** **
</TABLE>
* No waiver since the portfolio did not exceed expense limitations.
** Portfolio was not in existence during this period.
(a) Prior to May 1, 1997, this portfolio was named the Equity-Income Portfolio
(b) Prior to May 1, 1997, this portfolio was named the Utility Portfolio
97
<PAGE>
WRL SERIES FUND, INC.
- --------------------------------------------------------------------------------
Supplementary Information
(UNAUDITED)
SECTION 270.30D-1 UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED,
TITLED "REPORTS TO STOCKHOLDERS OF Management Companies," requires regulated
investment companies to report on all subject matter put to a vote of the
shareholders and provide final results.
In adherence to this Amendment, WRL solicited a vote by the policyholders
for:
Approval of a new Investment Advisory Agreement between WRL Investment
Management, Inc. and the WRL Series Fund, Inc. on behalf of each Portfolio of
the Fund.
Approval of a new Advisory Agreement between WRL Investment Management, Inc.
and Meridian Investment Management Corporation on behalf of the Global Sector
Portfolio of the Fund.
At a special shareholders/policyholders meeting on June 16, 1997 the
results of the proposals were as follows:
<TABLE>
<CAPTION>
PROPOSAL 1
----------------------------
PORTFOLIO FOR AGAINST ABSTAIN
- --------------- ----- --------- --------
<S> <C> <C> <C>
Global Sector 89% 4% 7%
</TABLE>
<TABLE>
<CAPTION>
PROPOSAL 2
----------------------------
PORTFOLIO FOR AGAINST ABSTAIN
- --------------- ----- --------- --------
<S> <C> <C> <C>
Global Sector 88% 6% 6%
</TABLE>
98
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
99
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
100
<PAGE>
- --------------------------------------------------------------------------------
W R L S E R I E S F U N D , I N C .
- --------------------------------------------------------------------------------
OFFICE OF THE WRL SERIES FUND
201 HIGHLAND AVENUE
Largo, FL 33770-2597
1-800-851-9777
---------------------------
Distributor:
INTERSECURITIES, INC.
201 Highland Avenue
Largo, FL 33770-2597
---------------------------
Fund Custodian:
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
16th Floor
Boston, MA 02116
---------------------------
Investment Adviser:
WRL INVESTMENT MANAGEMENT, INC.
201 Highland Avenue
Largo, FL 33770-2957
---------------------------
Sub-Advisers:
JANUS CAPITAL CORPORATION
100 Fillmore Street
Denver, CO 80206
Luther King Capital
Management Corporation
301 Commerce Street
Fort Worth, TX 76102
Federated Investment Counseling
Federated Investors Tower
Pittsburgh, PA 15222-3779
NWQ Investment
Management Company, Inc.
2049 Century Park East
4th Floor
Los Angeles, CA 90067
Meridian Investment
Management Corporation
12835 East Arapahoe Road
Tower II, Penthouse
Englewood, CO 80112
C.A.S.E. Management, Inc.
2255 Glades Rd.
Suite 221-A
Boca Raton, FL 33431
Scottish Equitable Investment
Management Limited
Edinburgh Park
Edinburgh EH12 95E, Scotland
AEGON USA
Investment Management, Inc.
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52449
Van Kampen American Capital
Asset Management, Inc.
One Parkview Plaza
Oakbrook Terrace, IL 60181
Fred Alger Management, Inc.
75 Maiden Lane
New York, NY 10038
J.P. Morgan Investment
Management Inc.
522 Fifth Avenue
New York, NY 10036
Dean Investment Associates
2480 Kettering Tower
Dayton, OH 45423-2480
GE Investment
Management Incorporated
3003 Summer Street
Stamford, CT 06905
---------------------------
Independent Accountants:
PRICE WATERHOUSE LLP
1055 Broadway
Kansas City, MO 64105
<PAGE>
THIS MATERIAL IS FOR CONTRACT AND POLICY
HOLDER'S REPORTING PURPOSES ONLY AND SHALL
NOT BE USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES. THIS MATERIAL MUST BE
PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
[GRAPHIC OMITTED]
--------------------------------------------------
Investment Adviser
WRL Investment Management, Inc.
Distributor: InterSecurities, Inc.
201 Highland Avenue /bullet/ Largo, Florida 33770-2597
August 1997
ACC00001 (8/97)
<PAGE>
APPENDIX A
Appendix to Electronic Format
WRL Series Fund, Inc.
Page 1 (Photo) Shown is John R. Kenney, Chairman of the Board
Page 2 (Graph) Pie Chart depicting composition as a percentage of total Money
Market Portfolio net assets.
Short-term U.S. Government Obligations 4.61%
Commercial Paper 37.25%
Short-term Obligations 12.64%
Bank Obligations 45.43%
Other 0.07%
Bar chart depicting maturity composition of the Money Market
Portfolio at June.
Market Value
30 days $56,826,611
30-60 days $25,715,716
60-90 days $11,000,107
90-180 days $13,401,522
180-270 days $0
270 days to 1 year $12,496,582
more than 1 year $0
Page 3 (Graph) Mountain graph dipicting the change in value of a $10,000
investment in the Bond Portfolio since inception versus the
Lehman Brothers Government/Corporate Bond Index ("LB") over the
same time frame.
Portfolio LB Index
Inception 10/2/86 $10,000 $10,000
FYE 12/31/86 $10,412 $10,310
FYE 12/31/87 $ 9,823 $10,540
FYE 12/31/88 $10,583 $11,340
FYE 12/31/89 $12,133 $12,960
FYE 12/31/90 $12,887 $14,030
FYE 12/31/91 $15,317 $16,290
FYE 12/31/92 $16,358 $17,530
FYE 12/31/93 $18,547 $19,460
FYE 12/31/94 $17,260 $18,780
FYE 123/1/95 $21,228 $22,390
FYE 12/31/96 $21,258 $23,040
Period Ended 6/30/97 $21,661 $23,670
Page 4 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Growth Portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks ("S&P") over the
same time frame.
Portfolio S&P Index
Inception 10/2/86 $10,000 $10,000
FYE 12/31/86 $10,144 $10,560
FYE 12/31/87 $11,249 $11,110
<PAGE>
FYE 12/31/88 $13,344 $12,940
FYE 12/31/89 $19,621 $17,040
FYE 12/31/90 $19,578 $16,511
FYE 12/31/91 $31,284 $21,542
FYE 12/31/92 $32,021 $23,183
FYE 12/31/93 $33,293 $25,519
FYE 12/31/94 $30,527 $25,856
FYE 12/31/95 $44,912 $35,572
FYE 12/31/96 $52,979 $43,740
Period Ended 6/30/97 $59,076 $52,754
Page 5 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Short-to-Intermediate Portfolio since
inception versus the Merrill Lynch 1-10 Year Government Bond
Index ("ML") over the same time frame.
Portfolio ML Index
Inception 12/3/92 $10,000 $10,000
FYE 12/31/92 $10,045 $10,132
FYE 12/31/93 $10,505 $10,960
FYE 12/31/94 $10,460 $10,774
FYE 12/31/95 $11,877 $12,341
FYE 12/31/96 $12,290 $12,826
Period Ended 6/30/97 $12,599 $13,178
Page 6 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Global Portfolio since inception versus the
Morgan Stanley Capital International World Index ("MS") over the
same time frame.
Portfolio MS Index
Inception 12/3/92 $10,000 $10,000
FYE 12/31/92 $10,162 $10,008
FYE 12/31/93 $13,724 $12,415
FYE 12/31/94 $13,759 $13,110
FYE 12/31/95 $16,932 $15,900
FYE 12/31/96 $21,628 $18,130
Period Ended 6/30/97 $25,298 $20,960
Page 7 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Strategic Total Return Portfolio since
inception versus the Standard & Poor's Index of 500 Common
Stocks ("S&P") and Lehman Brothers Government/Corporate
Intermediate Bond Index ("LB") over the same time frame.
Portfolio S&P Index LP Index
Inception 3/1/93 $10,000 $10,000 $10,000
FYE 12/31/93 $11,349 $10,770 $10,490
FYE 12/31/94 $11,288 $10,912 $10,805
FYE 12/31/95 $14,072 $14,996 $12,461
FYE 12/31/96 $16,182 $18,439 $12,966
Period Ended 6/30/97 $18,407 $22,263 $13,333
<PAGE>
Page 8 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Emerging Growth Portfolio since inception
versus the Standard & Poor's Index of 500 Common Stocks ("S&P")
over the same time frame.
Portfolio S&P Index
Inception 3/1/93 $10,000 $10,000
FYE 12/31/93 $12,471 $10,770
FYE 12/31/94 $11,553 $10,912
FYE 12/31/95 $16,960 $14,996
FYE 12/31/96 $20,162 $18,439
Period Ended 6/30/97 $21,899 $22,263
Page 9 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Aggressive Portfolio since inception versus
the Value Line (Arithmetic) ("VL") Index and the Standard and
Poor's Index of 500 Common Stocks ("S&P") over the same time
frame.
Portfolio VL Index S&P Index
Inception 3/1/94 $10,000 $10,000 $10,000
FYE 12/31/94 $ 9,874 $ 9,685 $10,072
FYE 12/31/95 $13,628 $12,197 $13,857
FYE 12/31/96 $15,052 $14,609 $17,039
Period Ended 6/30/97 $17,284 $16,832 $20,550
Page 10 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Balanced Portfolio since inception versus the
Standard and Poor's Index of 500 Common Stocks ("S&P") and the
Lehman Brothers Government/Corporate Intermediate Bond Index
("LB") over the same time frame.
Portfolio S&P Index LB Index
Inception 3/1/94 $10,000 $10,000 $10,000
FYE 12/31/94 $ 9,427 $10,072 $ 9,840
FYE 12/31/95 $11,293 $13,857 $11,348
FYE 12/31/96 $12,504 $17,039 $11,808
Period Ended 6/30/97 $13,485 $20,550 $12,142
Page 11 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Growth & Income Portfolio since inception
versus the Dow Jones Utilities Average Index ("Dow Util") and
the Standard and Poor's Index of 500 Common Stocks ("S&P") over
the same time frame.
Dow Util
Portfolio Index S&P Index
Inception 3/1/94 $10,000 $10,000 $10,000
FYE 12/31/94 $ 9,542 $ 9,166 $10,072
FYE 12/31/95 $11,952 $12,063 $13,857
FYE 12/31/96 $13,343 $13,065 $17,039
Period Ended 6/30/97 $14,533 $13,015 $20,550
Page 12 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Tactical Asset Allocation Portfolio since
inception versus the Standard and Poor's Index of 500 Common
Stocks ("S&P") and the Lehman Brothers Government/Corporate
Intermediate Bond Index ("LB") over the same time frame.
<PAGE>
Portfolio S&P Index LB Index
Inception 3/1/95 $10,000 $10,000 $10,000
FYE 12/31/95 $12,009 $13,758 $11,533
FYE 12/31/96 $13,741 $16,917 $12,000
Period Ended 6/30/97 $14,914 $20,402 $12,340
Page 13 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the C.A.S.E. Growth Portfolio since inception
versus the Wilshire 5000 Index ("Wilshire") over the same time
frame.
Portfolio Wilshire Index
Inception 5/1/95 $10,000 $10,000
FYE 12/31/95 $12,065 $12,028
FYE 12/31/96 $14,176 $14,294
Period Ended 6/30/97 $14,910 $16,674
Page 14 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Global Sector Portfolio since inception
versus the Financial Times World Index ("FT") and the Lehman
Hutton Bond Index ("LH") over the same time frame.
Portfolio FT Index LH Index
Inception 5/1/96 $10,000 $10,000 $10,000
FYE 12/31/96 $10,608 $10,473 $10,811
Period Ended 6/30/97 $11,291 $11,941 $11,407
Page 15 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Value Equity Portfolio since inception versus
the Standard & Poor's Index of 500 Common Stocks ("S&P") over
the same time frame.
Portfolio S&P Index
Inception 5/1/96 $10,000 $10,000
FYE 12/31/96 $11,319 $11,500
Period Ended 6/30/97 $12,979 $13,870
Page 16 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the International Equity Portfolio since inception
versus the Morgan Stanley Capital International ("EAFE") Index
and the Morgan Stanley Capital International World, excluding
U.S. ("World") Index over the same time frame.
Portfolio EAFE Index World Index
Inception 1/2/97 $10,000 $10,000 $10,000
Period Ended 6/30/97 $11,344 $11,171 $11,162
Page 18 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the U.S. Equity Portfolio since inception versus
the Standard & Poor's ("S&P") Index over the same time frame.
Portfolio S&P Index
Inception 1/2/97 $10,000 $10,000
Period Ended 6/30/97 $11,499 $12,061
