WRL Series Fund, Inc.
[GRAPHIC OMITTED]
Semi-Annual Report
June 30, 1998
August 1998
ACC00001 (8/98)
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TABLE OF CONTENTS
PAGE
Chairman's Letter.............................................. 1
WRL SERIES FUND, INC.
PORTFOLIO MANAGER'S COMMENTARY
Money Market Portfolio..................................... 2
Bond Portfolio............................................. 4
Growth Portfolio........................................... 6
Global Portfolio........................................... 8
Strategic Total Return Portfolio........................... 10
Emerging Growth Portfolio.................................. 12
Aggressive Growth Portfolio................................ 14
Balanced Portfolio......................................... 16
Growth & Income Portfolio.................................. 18
Tactical Asset Allocation Portfolio........................ 20
C.A.S.E. Growth Portfolio.................................. 22
Global Sector Portfolio.................................... 24
Value Equity Portfolio..................................... 26
International Equity Portfolio............................. 28
U.S. Equity Portfolio...................................... 30
Third Avenue Value Portfolio............................... 32
Real Estate Securities Portfolio........................... 34
SCHEDULE OF INVESTMENTS
Money Market Portfolio..................................... 36
Bond Portfolio............................................. 38
Growth Portfolio........................................... 40
Global Portfolio........................................... 43
Strategic Total Return Portfolio........................... 47
Emerging Growth Portfolio.................................. 51
Aggressive Growth Portfolio................................ 56
Balanced Portfolio......................................... 58
Growth & Income Portfolio.................................. 60
Tactical Asset Allocation Portfolio........................ 62
C.A.S.E. Growth Portfolio.................................. 65
Global Sector Portfolio.................................... 67
Value Equity Portfolio..................................... 71
International Equity Portfolio............................. 73
U.S. Equity Portfolio...................................... 79
Third Avenue Value Portfolio............................... 84
Real Estate Securities Portfolio........................... 85
Statement of Assets and Liabilities.......................... 86
Statement of Operations...................................... 90
Statement of Changes in Net Assets........................... 94
Financial Highlights........................................ 100
Notes to the Financial Statements........................... 108
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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:
"ENDURING THE MARKET'S SHORT-TERM
VAGARIES IS PRECISELY
WHAT MAKES ACHIEVING SUPERIOR RESULTS
SO TOUGH."
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JOHN R. KENNEY
CHAIRMAN OF THE BOARD
By the numbers, at least, it was another great six months for the financial
markets. Indexes of all size and shape posted splendid returns as stocks
continued to run well ahead of the market's "normal" pace.
The stellar numbers fail to reveal, however, the unaccustomed measure of
volatility that lies within them. Indeed, the U.S. markets this period were
marked by a series of fits and starts, some of which were rather abrupt. As it
turned out, the seemingly unstoppable bull that looked right past the Asian
financial crisis in the first quarter ran dead into it during the second. This
Great Bull Market, in other words, proved vulnerable to the economic ills
troubling the Far East. And with that, a degree of uncertainty came back in the
stock market.
Of course, investing of the best kind requires an occasional embrace of
uncertainty. Enduring the market's short-term vagaries -- to stay fully
invested through the occasional decline in order to be fully invested through
any future advance -- is precisely what makes achieving superior results so
tough. In the end, real investment success is the reward for an investor's
willingness and ability to withstand volatility.
That kind of conviction can only come with a thoughtful, disciplined investment
process. Not too surprisingly, we believe that process is best implemented by
talented, hardworking professionals -- professionals like the portfolio managers
of the WRL Series Fund, Inc. On the following pages, these experts share their
perspectives on investing and discuss how they've responded to this period's
changes and why. We encourage you to take the time to review these reports,
including those of our two new Portfolios -- the Third Avenue Value Portfolio
and the Real Estate Securities Portfolio. Understanding your investment and its
performance should be at the heart of your long-term investment plan.
In the meantime, the vagaries of the marketplace will surely continue. After
more than three years of truly outstanding returns, a pullback or correction is
possible, if not likely. But the long-term case for owning financial assets
remains solid . . . not much has changed with regard to the extraordinary
combination of low inflation, strong earnings, and global capitalism that's
been fueling this expansion. In fact, we're of a mind to think the current bull
market is just a prelude to an even bigger one. The world, we believe, is on
the threshold of an entirely new economy, one in which the emergence of
information technologies will usher in a new era of prosperity. And as the
Information Revolution moves more fully into the mainstream, it should create a
new economic surge that could usher in nothing less than the greatest boom in
history . . . and with it, unprecedented opportunities for investors.
There is, then, cause for great optimism. But no matter what the markets do, or
when, we will do our best to provide you with solid, well-managed products and
superior service. Of that, you can be certain. We respect your personal task of
financial planning and appreciate the opportunity to assist.
Sincerely yours,
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John R. Kenney
CHAIRMAN OF THE BOARD
1 9 9 8 S e m i - A n n u a l R e p o r t 1
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WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
The economy continued to show strong growth through the first half of this
year. The fact that this strong growth occurred with relatively no inflation
and strong consumer spending has given rise to speculation among investors that
the Federal Reserve Board ("Fed") might tighten rates to slow the economy. The
current perception is that while the Fed holds a tightening bias, it appears to
be on hold for now.
The Portfolio's average maturity was extended and is currently maintained
in the 55 to 60 day range. The Portfolio's performance was enhanced by the
addition of asset-backed commercial paper and by continuing to hold floating
rate notes. Effective liquidity and the management of the duration were the key
factors in the Portfolio's performance during the past six months.
We expect the U.S. economy to slow to around 2% growth later this year,
perhaps even lower, which would be in line with the Fed's target. This
probability could be affected, however, if consumer spending remains strong and
late cycle price pressures accelerate. Despite the Fed's bias, we don't
anticipate tightening action anytime soon. The Portfolio will remain near the
top end of its maturity range in view of a slowing economy and a favorable
inflation outlook, factors that should lead to declining interest rates.
J.P. MORGAN [GRAPHIC OMITTED]
INVESTMENT
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
Portoflio will be able to maintain a stable net asset value of $ 1.00 per share.
2 W R L S e r i e s F u n d , I n c .
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WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
PORTFOLIO COMPOSITION
June 30, 1998
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MATURITY COMPOSITION
June 30, 199
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1 9 9 8 S e m i - A n n u a l R e p o r t 3
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WRL SERIES FUND, INC.
BOND PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
INVESTMENT APPROACH
In order to provide solid risk-adjusted returns, we take an approach we
believe to be conservative, one that strives to participate in the market's
advances while preserving capital on the downside. We follow a disciplined
process for the evaluation of the market environment through which our interest
rate outlook and expectations for the relative performance of the major bond
market sectors are determined. To match our style and reflect our perspective
on the market, a number of adjustments have been made to the individual
holdings and overall structure of the Portfolio. In our view, the Portfolio
should always have the flexibility to adjust quickly to any changes.
THIS PERIOD
We essentially operated in a fairly narrow trading range market this
period with relatively low volatility. The bond market, still operating in an
environment of moderate economic growth and low inflation, further benefited
from a so-called flight to quality resulting from the problems in Asia. For
their part, corporate bond spreads had widened significantly by period end.
This, we think, can be attributed to record corporate issuance and anxiety
about the potential impact on earnings from the Asian crisis.
PERFORMANCE
In this environment, the Portfolio performed in line with its benchmark.
For the six month period ended June 30, 1998, the Bond Portfolio returned 3.99%.
By comparison, the Lehman Brothers Government/Corporate Bond Index returned
4.17% for the same period. Performance was enhanced by security selection within
the corporate market, where finance, our largest corporate weighting, performed
relatively well. Despite a modest reduction in our allocation to corporate bonds
this period, the Portfolio was still overweighted relative to its index. On the
other hand, relative performance was hampered by our underweighting in
longer-maturity securities.
OUTLOOK
Looking forward, we think the combination of a moderate growth economy,
limited inflation concerns, a strong dollar, and the positive backdrop provided
by foreign bond markets should positively impact interest rates. And, for its
part, concerns surrounding Asia remain a wildcard, of course, and technical
factors could influence the market's direction as well. The Federal Reserve
Board appears to be on indefinite hold. Considering all these factors, we are
modestly bullish on the bond market. The wild card, of course, would be Asia.
Our intention is to retain the current structure of the Bond Portfolio.
Although the Portfolio is broadly diversified, it continues to have an emphasis
on corporate bonds, with the heaviest exposure to financials and a modest
overweight to industrials. And while there is a substantial overweight to
single-A rated securities, the average quality of the Portfolio remains high at
AA.
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[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Clifford A. Sheets Jarrell D. Frey
Bond Portfolio
Co-Portfolio Managers
This material must be preceded or accompanied by the Fund's current prospectus.
4 W R L S e r i e s F u n d, I n c.
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WRL SERIES FUND, INC.
BOND PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
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
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1 9 9 8 S e m i - A n n u a l R e p o r t 5
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WRL SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
While domestic markets moved ahead strongly this period, the numbers
masked the sharp volatility that characterized the six months. After an
impressive start, equity markets struggled during the second quarter amid bad
news from Asia and disappointing earnings reports in the semiconductor
industry. The quarter ended on a high note, however, as better news helped the
markets recover lost ground. Throughout it all, the U.S. economic backdrop
remained positive -- consumer spending proved resilient, housing starts held at
near-record highs, and weakness in Asia kept the U.S. economy from boiling
over. Inflation, for its part, remained in check and signs of slower economic
growth generally drove yields lower.
PERFORMANCE
Supported by strong gains in its large-capitalization domestic growth
stocks, especially in the technology and pharmaceutical industries, the
Portfolio easily outpaced its benchmark for the period. For the six month
period ended June 30, 1998, the Growth portfolio returned 36.03%. By
comparison, the Standard & Poor's Index of 500 Common Stocks returned 17.71%
for the same period. Among technology stocks, we benefited from a focus on
market leaders like Cisco Systems, Inc., Microsoft Corporation, and America
Online, Inc. Each of these companies enjoys a dominant market position and was
able to endure the Asian crisis with virtually no earnings impact.
Our pharmaceuticals were supported by the rising global utilization of
existing drugs and an accelerated research and development process. Over the
next few years, in fact, we expect to see a dramatic increase in new drug
launches, promising treatments for everything from cancer to obesity. We remain
particularly positive on Pfizer, Inc., in spite of the substantial run-up in
its stock price. Not only does the company offer a very strong product lineup
of its own, but its marketing channel is so renowned that other companies have
sought it out to partner on some of their most promising new drugs.
DISAPPOINTMENTS
Despite the Portfolio's strong performance, we did have a few
disappointments. I've maintained however, minor positions in a few rapidly
growing mid-size companies. While I believe these companies could one day
emerge as dominant players within their respective industries, many of these
holdings came under pressure as investors flocked toward the more predictable
earnings of the large-capitalization names. Although this was a short-term
setback, I've held on to these positions for their impressive long-term
prospects.
OUTLOOK
Looking forward, we don't expect the ride to get much smoother. Firms with
significant international exposure, especially in Asia, will most likely see
their profit margins squeezed. Within the marketplace, the biggest perceived
risk now is that the troubles in Asia will eventually drag down U.S. and
European economic growth. Personally, I view this as a very small risk given
the resilience of consumer demand at home and the benefits of restructuring and
monetary convergence in Europe. Nevertheless, we will continue to monitor the
situation carefully. More importantly, we have tried to invest in stocks of
companies that transcend the vagaries of the marketplace, and can withstand
this kind of turbulence with minimal damage to their bottom lines.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Scott W. Schoelzel
Growth Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
6 W R L S e r i e s F u n d , I n c .
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WRL SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
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
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1 9 9 8 S e m i - A n n u a l R e p o r t 7
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WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
Despite heightened volatility caused by economic and political tensions in
Asia, the Morgan Stanley Capital International ("MSCI") World Index posted a
strong gain for the first six months of the year. By the end of the period,
investors increasingly came to view the Asian downturn as a positive event for
the global economy, helping to keep global inflationary pressures and interest
rates in check.
At the same time, economic expansion continued at a robust pace in the
U.S. and Europe. The approach of the European Monetary Union (EMU) has
supported consumer confidence, driven mergers and acquisitions, and provided
companies with the economies of scale to invest in new technology. Optimism
over the strength of the European expansion was so strong that European bourses
generally shook off tremors from a recent Russian ruble devaluation to end the
second quarter on a positive note.
PERFORMANCE
In this environment, the Portfolio outperformed its benchmark. For the six
month period ended June 30, 1998, the Global Portfolio returned 28.90%. By
comparison, the MSCI World Index returned 16.64% for the same period. We remain
overweighted in European markets, where consolidation and restructuring remain
the dominant themes behind many of our investments. Our longtime position in
Royal Philips Electronics N.V. demonstrates this evolution. They continue to
restructure their business portfolio, spinning off underperforming units and
concentrating on higher margin businesses that produce better returns on
corporate assets. The company also announced a share repurchase program,
further unleashing shareholder value.
Our focus on market leaders with visible earnings also helped us through
the difficulties that surrounded so many technology stocks this period. In
Europe, for example, Cap Gemini SA capitalized on the robust investment climate
and preparation for the Year 2000, while dominant U.S. firms like Microsoft
Corporation and Cisco Systems, Inc. shook off the Asian chill to post strong
gains.
Despite strong portfolio gains, we did have a few disappointments during
the period. The strength of the European economies led investors to favor
cyclical stocks, which negatively impacted our pharmaceutical stocks there.
Among our other holdings, Sony Corporation and Nippon Telegraph & Telephone
lost ground due to Japanese weakness. In addition, Siebe Plc, an industrial
equipment manufacturer based in the U.K., was negatively impacted by its
decline in exports.
OUTLOOK
Looking ahead, we believe lower interest rates and modest inflation have
created a favorable climate for equities. The risk that the Asian weakness
could derail economic growth elsewhere seems slim, given the benefits of
restructuring and monetary convergence in Europe, and the resilience of
consumer spending in the U.S. At the same time, though, I see little hope for a
near-term improvement in Asia. Unless the Japanese government takes steps to
prop up its failing economy, a Chinese devaluation remains a significant risk
for global markets. With so few signs of improvement in Asia, the road to
recovery is sure to be long and difficult, even if the Japanese do act. The
shadow from the Far East has also extended across Latin America, but long-term
prospects are better there as long as market reforms continue.
[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.
8 W R L S e r i e s F u n d , I n c .
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WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 9
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WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
In line with the robust bull market of the last several years, stock prices
posted spectacular gains in 1998's first half. It was, however, a combination
of two very different market environments which led to that performance. During
the first quarter, a combination of renewed optimism about earnings and the
seasonal rush of fresh cash sparked a new-year rally that actually provided
most of the market's current year-to-date gains. Not too surprisingly, the
Portfolio's equity investments contributed the lion's share of its return
during the first quarter. The second quarter, on the other hand, could be
characterized as a "trading range" market, with much volatility but no real
progress in either direction. The Portfolio's bond investments were an
important part of managing volatility during that period.
PERFORMANCE
The Portfolio's equity performance benefited most this period from its
diversified list of large-cap stocks. Estee Lauder Companies, for example, a
global cosmetics concern, enjoyed particularly strong stock price appreciation,
reflecting, we think, its continued dominant market position in the high-end
cosmetics business. The Portfolio's exposure to certain economic sectors also
had a substantial impact on performance, specifically its positions in consumer
products, finance and services. We would have benefited from greater exposure
to the strong-performing technology sector, of course, but rarely do technology
stocks meet the demanding reward/risk requirements of the Portfolio.
We continue to find unique total return opportunities among select real
estate investment trusts ("REITs"). In the past, REITs have been a large
positive contributor to Portfolio performance, but they have been lackluster
thus far in 1998. Interestingly, we did benefit from a strong gain in ITT
Educational Services, Inc., which we uncovered as a result of our REIT
research.
For the six months ended June 30, 1998, the Strategic Total Return
Portfolio returned 6.60%. By comparison, the Standard & Poor's Index of 500
Common Stocks returned 17.71%, and the Lehman Brothers Government/Corporate
Intermediate Bond Index returned 3.47% for the same period.
APPROACH AND OUTLOOK
The first half of 1998 demonstrates the underlying strengths of how the
Strategic Total Return Portfolio is managed. First, the Portfolio has a
philosophy of investing in a blend of asset classes as a way to help control
volatility while allowing for the reward of capital appreciation potential that
comes with equity investing. Second, the investment strategy is built on
investing in companies with strong balance sheets, established franchises, and
consistent growth prospects with high profitability levels which we believe are
sustainable. Maintaining a focused security valuation methodology and broad
diversification against unwanted concentrations within each segment of the
Portfolio further helps to control risks. We believe the strategic total return
approach is appropriate for most parts of the business cycle, including our
current outlook for moderate economic growth and low interest rates.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Luther King Scot C. Hollmann
Strategic Total Return Portfolio
Co-Portfolio Managers
This material must be preceded or accompanied by the Fund's current prospectus.
10 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 11
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WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THE PERIOD IN REVIEW
The Emerging Growth Portfolio performed well for the six month period
ending June 30, 1998. In general, a growth style did better than a value style
this period and large capitalization stocks did better than small
capitalization stocks. All together, the strong growth stock market helped the
Portfolio while the strong large capitalization performance worked against it.
For the six months ended June 30, 1998, the Emerging Growth Portfolio returned
22.48%. By comparison, the Standard & Poor's Index of 500 Common Stocks
returned 17.71% for the same period.
Throughout the entire period, emerging growth stock valuations relative to
larger stocks remained near the bottom of the typical range. The best
performing groups were retail and selected technology, while energy stocks were
the worst. Overall, the breadth of the market has been narrow, meaning a select
number of stocks have been responsible for much of the market's appreciation.
Fortunately, the Emerging Growth Portfolio identified many of these stocks.
Among the best performers during the period were: Dell Computer Corporation,
Engineering Animation, Inc., America Online, Inc., Capital One Financial
Corporation, Yahoo! Inc., Best Buy Co., Inc., Pacific Sunwear of California,
and Legato Systems, Inc.
INVESTMENT APPROACH
The investment style being employed in the Portfolio is a "bottom-up"
approach that focuses on individual stock selection. We attempt to identify the
fundamentally best high-growth companies whose stocks are being rewarded in the
marketplace. Stocks are selected based on two key criteria: rising earnings
expectations and improving valuations. To be purchased for the Portfolio,
stocks must satisfy both criteria. For the most part, stocks are sold
immediately if earnings expectations fall, and fairly quickly if the valuation
declines. The Portfolio, which remains fully invested for the most part, is
broadly diversified to help control risk. This style remains consistent in all
market conditions.
OUTLOOK
With the earnings growth gap currently widening in favor of emerging
growth companies, and given their attractive valuations, emerging growth stocks
should be very attractive for investors. At the same time, though, enhanced
market volatility has seemingly made liquidity a higher priority for investors,
making stocks with higher trading liquidity more in demand. This situation
seems unlikely to change near term. As a result, even though emerging growth
stock fundamentals are at the point where the group traditionally begins to
lead the market, it will not likely happen until the perceived need for trading
liquidity subsides. Until then, the group will likely be volatile.
[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.
12 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 13
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD IN REVIEW
The first quarter of 1998 proved very rewarding for investors in the U.S.
equity market. Stocks that had been undeservedly oversold in the wake of the
Asian crisis rebounded nicely in an environment where inflation remained
subdued and the Federal Reserve Board ("Fed") left interest rates unchanged.
The post-Asian crisis earnings season came and went with some predictable
casualties, but most companies got through it unscathed. Moreover, after a year
in which value stocks significantly outperformed growth stocks, investors
returned to a more aggressive posture. The Aggressive Growth Portfolio posted a
strong quarter of absolute and relative performance, led by significant
positions in pharmaceutical and financial services stocks.
The second quarter, however, was much more challenging. But, while
domestic stock funds on the whole struggled, large-cap growth funds performed
reasonably well. The Portfolio, for its part, made the most of an all-cap
approach by dramatically overweighting large-cap stocks. At period end, nearly
80% of total assets were invested in companies with market capitalizations
greater than $ 5 billion. All together, the Portfolio's weighted average market
cap exceeded $ 44 billion.
PERFORMANCE
Within the large-cap discipline, we added value by maintaining our
position in pharmaceutical stocks, which continued to be rewarded by a
quality-minded investment community. The ten pharmaceutical holdings in the
Portfolio represented 13.76% of total assets at period end and all performed
well. We also saw good performance from our substantial technology holdings,
especially during the month of June. Microsoft Corporation and America OnLine,
Inc., were particularly strong. All told, a relatively good second quarter
capped an extraordinary six months with the Portfolio outperforming its
benchmark index. For the six months ended June 30, 1998, the Aggressive Growth
Portfolio returned 27.38%. By comparison, the Standard & Poor's Index of 500
Common Stocks returned 17.71%, and the Value Line (Arithmetic) Index returned
8.18% for the same period.
OUTLOOK
Given the relative valuations of small-cap growth stocks, they would
appear well positioned for a potential rally. But, unless signs of change in
the investor psychology that has fueled the performance of large caps become
apparent, the Portfolio will likely maintain its significant exposure to these
stocks.
We are very optimistic regarding the second half of the year. Given the
sustained low levels of inflation, we continue to believe that the Fed will not
raise interest rates for the rest of 1998. In fact, if the yield curve
continues to flatten, it is conceivable that the Fed may be compelled to
actually lower rates. We believe this environment would justify a
price/earnings ratio for the stocks comprising the Dow Jones Industrial Average
of 20 times next year's earnings. When multiplied against our earnings
projection for the stocks in the Dow, we feel the Industrials could be at the
10,000 level by year-end. Coupled with the heightened interest in growth stocks
revealed in June, we feel the prospects for solid performance in the second
half are strong.
[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.
14 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 15
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
PERFORMANCE
One could say the Portfolio took it on the chin this period, particularly
during the second quarter. This seems particularly disappointing until it is
compared to the typical stock. Outside the major indexes and their relatively
narrow lists, the 5,000 or so stocks in the New York Stock Exchange were up
9.0% for the first quarter yet down 4.7% in the second quarter. Obviously, we
did not escape this market consolidation. We are especially disappointed with
the many stocks that underperformed for the period, most of which came from
smaller companies. For the six month period ended June 30, 1998, the Balanced
Portfolio returned 4.18%. By comparison, the Standard & Poor's Index of 500
Common Stocks returned 17.71%, and the Lehman Brothers Government/Corporate
Intermediate Bond Index returned 3.47% for the same period.
PORTFOLIO ACTIVITY
Selected changes have been made to strengthen positions as we go forward.
In the equity portion of the Portfolio we added 11 and eliminated 15 equity
positions, bringing the total number of holdings to 53 common and preferred
stocks. Large-cap holdings are beginning to dominate the Portfolio, as we are
making a conscious effort to select larger companies in the hopes of adding a
higher level of earnings stability and predictability.
OUTLOOK
Looking forward, we see few signs of weakness in the domestic economy,
although earnings expectations have ratcheted down in the last few months. One
area of concern is a potential tightening by the Federal Reserve Board ("Fed").
Notes from the last Federal Reserve Open Market Committee meeting show that if
Mr. Greenspan had wanted to raise rates, he would have had the votes.
Obviously, a lot has changed in the last three months. We suspect the Fed will
remain silent until at least 1999 as long as the domestic economy does not
erupt with growth and/or Asia does not find a cure for their nagging flu.
As we are finding out, economic flu for the rest of the world can actually
be beneficial for us in some ways, at least in the short-term. Growth is kept
in check, inflation is almost non-existent, and our markets are still seeing a
flight to quality. Foreign investors are pouring money into our market to
protect their investments from the currency pressure they are feeling at home.
As companies begin to report this quarter, we should see some signs if
Wall Street analysts over or under-estimated the effects of Asia on corporate
earnings. If there are more negative surprises, we would expect a difficult
second half of the year. Of course if there are more positive surprises --
especially with falling interest rates -- we would expect the market to
continue to move higher, particularly if cash flow into mutual funds remains at
or near its year-to-date in flow rate. We suspect our larger companies with
international exposure will report at least in line with their already
diminished expectations, and many of our domestic names will surprise us with
very good numbers this quarter.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Michael Van Meter
Balanced Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
16 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 17
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
It was, to say the least, a difficult period for the Portfolio. While many
market indexes set record highs, the speculative market environment was
altogether unfavorable for a defensive equity strategy like ours. For the six
months ended June 30, 1998, the Growth & Income Portfolio returned 1.25%. By
comparison, the Standard & Poor's Index of 500 Common Stocks ("S&P 500")
returned 17.71%, the Dow Jones Utilities Average returned 9.68%, and the
Russell 3000 Index returned 14.28% for the same period.
The Growth & Income's strategy emphasizes sectors and stocks that are
undervalued, out of favor, and relatively high yielding. We seek stocks of
companies with improving fundamentals and, according to our proprietary
defensive stock model, low risk of relative price declines. Out of this, three
sectors emerge prominently: real estate investment trusts ("REITs"), electric
utilities, and diversified gas companies
PERFORMANCE
Unfortunately, these sectors, which account for over 60% of the
Portfolio's assets, significantly trailed the market this period. REITs, as
measured by the Morgan Stanley REIT Index, actually fell in the first half.
Despite a much higher dividend yield and faster earnings growth, REITs are now
sharply undervalued relative to the S&P 500. Moreover, real estate fundamentals
are sound in most parts of the country. We expect their relative performance to
improve in the third quarter. Electric utilities are substantially undervalued
versus the S&P as well. The outlook for the group showed noticeable
improvement, however, in the second quarter. Prospects for the natural gas
stocks also appear excellent. We think demand will continue to rise and supply
will remain constrained, and that many of the gas companies could be excellent
takeover candidates.
Among the REITs and local gas utilities, which were our worst performers,
Meditrust Corporation, a "paired-share" REIT, fell as Federal legislation to
curb the "paired-share" advantage was introduced with likely passage.
Associated Estates Realty Corporation, an apartment REIT, fell on weaker
operating results and an unpopular acquisition outside its Midwest territory.
In our analysis, both of these high-yielding stocks had excellent records of
defensive stock performance prior to this year.
On the plus side, the best performing stocks in the Portfolio were several
of our largest holdings: McCormick & Company, Inc. (spices), ABB AB
(international power generation), El Paso Natural Gas Company (gas pipeline),
and NIPSCO Industries, Inc. (electric utility).
OUTLOOK
The U.S. stock market has defied history, valuation, and probability so
far this year. It is by far the most expensive stock market ever. The Growth &
Income Portfolio, while disappointing in its lack of participation in a strong
market this year, continues to achieve its goal of downside protection on days
of "market stress." We're confident our major sectors will have better results
in the second half while continuing to provide excellent relative safety in
more adverse market conditions.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Steven J. Lehman Linda A. Duessel
Growth & Income Portfolio
Co-Portfolio Managers
This material must be preceded or accompanied by the Fund's current prospectus.
18 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE WRL SERIES
FUND, INC. GROWTH & INCOME PORTFOLIO, THE RUSSELL 3000 INDEX, THE DOW JONES
UTILITIES AVERAGE INDEX, AND THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 19
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
While equity returns during the period were generally strong, there was a
fair amount of turbulence below the surface. More specifically, stocks of small
and mid-cap companies performed relatively poorly, while the highly liquid,
"mega-cap" stocks were ahead of the market. In this environment, relative
valuations for the group of stocks that are not mega-caps have actually been
attractive for much of the past year even though market valuations in aggregate
appear to be overpriced.
PERFORMANCE
While several factors positively impacted the Portfolio's performance
during the period, the most significant was a series of mergers and
acquisitions involving some of our largest holdings, including 360
Communications Company, Green Tree Financial Corporation, and Chrysler
Corporation. At the same time, our media stocks were in favor due to the
potential for industry consolidation, as well as asset sales and other
shareholder-friendly initiatives.
We achieved mixed results from our "defensive" equity positions, which
were originally purchased based on their historical low volatility, healthy
dividend yield, and capacity to outperform in a bear market. Electric utility
stocks, for example, performed as expected but our real estate investment
trusts (REITs) were generally weak. While the REIT group is apparently
digesting its strong 1996-1997 performance, we think that over a series of
market environments the group will add value to the portfolio.
For the six months ended June 30, 1998, the Tactical Asset Allocation
Portfolio returned 7.14%. By comparison, the Standard & Poor's Index of 500
Common Stocks returned 17.71%, and the Lehman Brothers Government/Corporate
Intermediate Bond Index returned 3.47% for the same period.
PORTFOLIO COMPOSITION
In terms of asset allocation, our models are proposing a fairly cautious
intermediate-term outlook with a likelihood of continued volatility. The
Tactical Asset Allocation Portfolio is well positioned for this environment,
with a strong value discipline in the equity selection process, and a high
quality profile in the fixed-income holdings. Our allocation to equities was
55.4% at period end, well below the 60% "neutral" positioning for the
Portfolio. Furthermore, our exposure to "defensive" sectors such as REITs and
electric utilities should help keep the Portfolio in a capital preservation
mode in the event of a market correction.
The Portfolio has important exposure to stocks of companies in what we
call "junior large-cap." The companies we favor typically enjoy leading if not
commanding market position within their industry segment. Moreover, many of
these stocks have been passed over in a market environment that has tended to
pay up for greater liquidity and greater market capitalization. Our value
philosophy and disciplined approach have identified this segment of the stock
market as the area that offers the potential for the best opportunity relative
to risk.
OUTLOOK
Our stock selection process and asset allocation models have provided
long-term clients 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.
20 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 21
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
The market's narrow leadership this period was primarily focused on its
largest 50 stocks. The large-cap stocks that have been driving the major
indexes are at price levels that, aside from alarming most professionals, make
them particularly vulnerable to any impending slowdown in earnings growth
rates. In this environment the C.A.S.E. Growth Portfolio underperformed its
benchmark. For the six month period ended June 30, 1998, the C.A.S.E. Growth
Portfolio returned 4.44%. By comparison, the Wilshire 5000 Index returned
14.68% for the same period.
The fact is the majority of professional money managers have been
underperforming the major equity averages over the past few years. Much of this
underperformance can be attributed to the precautions that the professional
community is taking in the face of a stock market that refuses to be bound by
its underlying fundamentals. A tidal wave of uninitiated foreign and U.S.
private investors has propelled the stocks in the Dow Jones Industrial Average
to levels two and three times higher than normal.
APPROACH
In the face of what is now the longest running bull market in stock market
history, we have been making a practice of avoiding stocks that have risen to
lofty, and in our opinion, unsustainable levels. Based on our estimations of
both trailing and leading earnings, the stocks of the Portfolio are selling at
multiples below those of the Standard & Poor's Index of 500 Common Stocks.
During the length of 1997, we put the emphasis more on growth stocks as
opposed to value stocks. This policy proved wise as the Portfolio's performance
compared favorably to the markets. In 1998, however, the market appears to be
pushing the upper end of its envelope and we are becoming more and more
defensive as these conditions persist. Certainly, Asia's recession has
influenced the earnings growth of many companies. Thus far, basic industries,
technology, and energy have suffered the brunt of the earnings disappointments.
Meanwhile, there are other sectors of the economy that won't feel the effect
for several months and others, such as retail stores that actually benefit from
cheaper Asian-made goods and a pickup in U.S. consumer demand.
OUTLOOK
At present levels, stocks seem vulnerable to a market sell-off. If the
market or the economy does not run into trouble, we believe the superior
returns and growth rates of the Portfolio's stocks should help to nurture its
assets. If the market does move down, we believe our value disciplines will do
much to help preserve capital. We believe the performance that counts most is
that which is achieved in both good and in bad markets over a long period of
time.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
William E. Lange
President and Chief
Executive Officer
C.A.S.E. Management, Inc.
This material must be preceded or accompanied by the Fund's current prospectus.
22 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 23
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
Although flat to down for much of the second quarter, the U.S. stock
market, at least as measured by the Standard & Poor's Index of 500 Common
Stocks ("S&P 500"), did show life in the closing two weeks. Most global markets
followed a similar pattern, with the second quarter adding only slightly to the
first quarter's stellar gains. In the meantime, the U.S. bond market rallied
strongly in the second quarter. The Portfolio, with approximately 30% of its
assets in Treasury and corporate bonds, profited from the bond market rally.
For the six month period ended June 30, 1998, the Global Sector Portfolio
returned 10.39%. By comparison, a 60% weighting in the Financial Times World
Index and a 40% weighting in the Lehman Hutton Aggregate Bond Index,
appreciated 11.37%. Individually, the Financial Times World Index increased
14.77%, while the Lehman Hutton Aggregate Bond Index was up 6.27% for the same
period.
For much of the last three and a half years, the market has been led by a
narrow group of large-capitalization stocks. That theme continued this period,
most notably in the second quarter. Despite the rise in the S&P 500, the small
and mid-cap segments of the U.S. market finished down for the most part. Active
managers once again had a tough time keeping pace with large-cap benchmarks
dominated by just a few stocks.
DOMESTIC ACTIVITY
The Global Sector Portfolio emphasized four domestic sectors this period:
technology, leisure, financial, and healthcare. Technology stocks, leaders of
the market in the first quarter, were poor performers in the second quarter as
fears of the Asian impact on U.S. companies hurt share prices. In our opinion,
the sell-off in these stocks has once again created a very attractive buying
opportunity. According to our valuation measures, many of the positions we hold
in the technology sector are selling below their fair value. The problems in
Asia have had an impact on these companies, to be sure, but investors have
overreacted, we think, pushing prices far too low. We expect these stocks to
rebound and contribute positively to performance for the remainder of 1998.
Otherwise, several stocks in the leisure sector have been market leaders
of late. Time Warner, Inc. for example, has been helped by investors'
resurrected belief in cable related shares while Viacom, Inc., considered a
"dog" for much of the recent bull market, has posted a well documented
turnaround, nearly doubling this period. Financial and healthcare stocks also
participated in the market's narrow advance -- financial issues were boosted by
lower interest rates while drug stocks benefited from investors' flight to
quality.
FOREIGN MARKETS
Outside the U.S., European markets rallied nicely, as stable economic
growth and low inflation have been the norms. Moreover, the benefits of the
European Monetary Union are beginning to accrue to joining nations. The
Portfolio's positions in Italy, Germany, and Denmark have all participated in
the global equity surge. While our positions in Italy were sold during the
second quarter, as valuations turned negative after significant capital
appreciation, Germany and Denmark still appear to have considerable upside
potential. Japan has thus far been a drag on the Portfolio, though the market
looks as undervalued to us as it has been this decade.
[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.
24 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
AGGREGATE BOND INDEX
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 25
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
The Portfolio's investment objective is to achieve maximum, consistent
total return with minimum risk to principal by investing primarily in common
stocks with above-average statistical value which we believe are in
fundamentally attractive industries and are undervalued at the time of
purchase. The Asian Flu, which seemed like just the right medicine for the
financial markets in January and February, re-ignited investor fears of slower
U.S. economic growth and negatively impacted a number of our holdings sensitive
to the economy.
Despite the double-digit gains for the major stock indexes, there were
large disparities in performance between sectors. On the favorable side, demand
for "safe" high-earnings visibility stocks drove many large-capitalization
growth stocks to record valuations. On the negative side, many value-oriented,
economy-sensitive and smaller stocks were unchanged or showed only modest
gains.
PERFORMANCE
For the six month period ended June 30, 1998, the Value Equity Portfolio
returned 6.18%. By comparison, the Standard & Poor's Index of 500 Common Stocks
returned 17.71% for the same period. The Portfolio was impacted by its exposure
to a number of economically sensitive companies as well as to energy service
issues. While we believe the oil-service industry has an excellent outlook,
declining oil prices have pushed energy stocks lower. We have used this
weakness as an opportunity to add selectively to the sector. On the positive
side, a number of consumer-oriented stocks purchased last year performed well,
including Time Warner, Inc. and MediaOne Group, Inc. The outlook for consumer
spending continues to improve and we are adding to holdings in this sector.
Also benefiting the Portfolio, and reflecting the inherent value in its
holdings, was the takeover of Alumax Inc. by Aluminum Company of America and
the pending merger of Dresser Industries, Inc. and Halliburton Company.
OUTLOOK
As value-oriented investors, we have always paid great attention to the
price of companies in which we invest. The reason for the discipline is simple:
No matter how great a business might be, investors will not prosper if they
overpay. The gulf between prices currently being paid by investors for stocks
perceived as "safe" from Asia's fallout, versus those that are perceived as
being "exposed" to an Asian recession, has reached levels we can only describe
as unimaginable. Investors are apparently discounting not only the future, but,
as the old saying goes, the hereafter as well.
The other side of the coin shows just how much fear of the Asian flu has
compressed multiples of companies not perceived as "safe". This would include
stocks like General Motors Corporation, Caterpillar, Inc., Loews Companies,
Inc., Deere & Company, Delta Air Lines, Inc., Case Corporation, and Philip
Morris Companies, Inc. Clearly, investors are anticipating a very bleak future
for these companies, even though all are currently near record profits. One
cannot predict with certainty, of course, how long such a valuation chasm will
persist. But just as the first round of Asian panic subsided earlier this year,
we believe this round will as well. When it does, the market will rethink its
math just as it did in the first quarter of this year.
[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.
26 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(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
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 27
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
For the six month period ended June 30, 1998, the International Equity
Portfolio produced a total return of 17.80%. By comparison, the Morgan Stanley
Capital International (EAFE) Index returned 11.12%, and the Morgan Stanley
Capital International World (excl. United States) Index return was 10.99%.
SCOTTISH EQUITABLE INVESTMENT MANAGEMENT LIMITED:
PERFORMANCE
The main contributor to the Portfolio's strong performance this period was
country allocation decisions. In particular, the overweighted position in
Europe and the underweighted positions in Japan and the Far East.
EUROPE
Within Europe we did well in country markets like Finland, Belgium, and
France. Individual stock selections within each region also impacted positively
on performance, especially Finland where Nokia Oyj, Europe's largest mobile
phone manufacturer, was up more than a 100%. Other stocks like Telefonica S.A.
in Spain and Valeo SA in France helped offset poor performances from stocks in
Germany and Sweden. Holdings in these areas suffered badly from a strong
de-rating of certain technological sensitive issues -- an area of the market
that will always be prone to Asia-induced earnings fears.
For the rest of the year, the consensus is that the European economy will
remain in good health with Spain, Italy, France, and possibly Germany providing
the engines for economic growth across the region.
FAR EAST
In Japan, meanwhile, values fell throughout the period as economic data
pointed towards the deterioration of the economy. Under these conditions, the
underweighted position in Japanese equities, particularly in the banking
sector, added relative value to performance. All of this was reinforced by the
continued yen weakness. The problems of the banking sector continue, though we
are watching carefully for signs of a government led solution. Far Eastern
markets, on the whole, continued to struggle as the economic slowdown and
weakening of the yen took their toll. The Indonesian market was by far the
worst affected.
Within the Asian portion of the Portfolio, there was considerable
activity, most of it resulting from our decision to underweight the region.
Between a reduction in the number of holdings and declining prices, the
Portfolio's commitment to Asian equities was reduced by more than 50%. There
were few changes to asset allocation and our only overweighted regions are
India and China.
LATIN AMERICA
Latin American markets, which are heavily influenced by the fortunes of
the yen, also had a disappointing period. Only the intervention of the U.S. to
support the weakening yen offered some support to falling prices across the
region. Volume in the markets was lower than even the crisis of last year. We
did profit from a few stock selections in Brazil.
GE INVESTMENT MANAGEMENT INCORPORATED:
THIS PERIOD
It was essentially a tale of two markets this period: Europe versus Asia.
Fortunately, we maintained a very high weighting in European equities and a
relatively small one in Asian stocks. All together, we're pleased with the
Portfolio's performance, though we did give back a fair amount in June. Towards
the end of the period, the problems in Asia weighed in heavily on the global
markets and many of our stocks moved lower, most notably those in the UK. We
think, however, this only makes them a better value for the second half of the
year.
PERFORMANCE
Our positive performance was driven primarily by our position in
Continental Europe where we had several issues that appreciated more than 50%.
We benefited from a combination of stocks in several arenas, including
beneficiaries of the Year 2000 conversions, restructuring stories, and, most
notably, finance stocks. Aside from restructuring and consolidation, many
financial companies are benefiting from the privatization of the public pension
schemes. This is a major theme that we think will play out over the next
several years in Europe. Some of the financial stocks in the Portfolio
appreciated greatly, and we've done some fine-tuning based on relative
valuations. But overall, we continue to have a good weighting in financial
service stocks in Europe.
Asia, on the other hand, is highly problematic. Despite the low
valuations, we're rather skeptical of the growth prospects for the region, and
as the fundamentals continue to erode, it's getting harder and harder to
identify value there. That's true especially in Japan. The key, we think, is to
find companies that have globally exportable and competitive goods or services
without a lot of debt. That, quite simply, is very difficult right now. Worse
yet, some of the companies that do look attractive are experiencing problems
with the domestic parts of their business.
OUTLOOK
From here, we think the biggest issue is creating a bottom to the whole
Pacific Basin. The market's skittishness in June is a good indication of just
how worried investors are regarding the Japanese economy. The potential
ramifications of a further weakening in the yen, especially the impact that
could have on emerging markets, are enormous. While we would prefer the world
to be more balanced, we are gratified as to how well the European markets have
been acting. They are not immune to short-term disappointments of course, but,
very much like the U.S. market, European markets are reacting very well to the
upside. We feel Europe will continue to be kind of a torch carrier for the
international markets with very tight leadership.
[GRAPHIC OMITTED] International Equity Portfolio [GRAPHIC OMITTED]
Co-Portfolio Management
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Russell Hogan Ralph Layman
For the Investment Management Board 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.
28 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
COMPARISON OF 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)
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 29
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
INVESTMENT APPROACH
The U.S. Equity Portfolio employs what we call a style-neutral approach.
We attempt to accomplish that through a team approach that combines a
growth-oriented and a value-oriented management. Each portfolio is constructed
on a bottom-up basis with stocks that meet valuation criteria for each
manager's particular style. Given that we're trying to reduce volatility caused
by style bias, the U.S. Equity Portfolio will generally have variances by
sector and industry versus the Standard & Poor's Index of 500 Common Stocks
("S&P 500"). Our aim is to generate superior long-term performance by finding
stocks we think are going to outperform the index over the next three to five
years.
THIS PERIOD
The outstanding characteristic of the stock market this period was, no
doubt, the domination of large-cap stocks. Within the S&P 500, for example, the
100 biggest stocks were up nearly twice as much as the next best performing
quintile. In other words, a portfolio that was equally weighted across all the
stocks of the S&P 500 would have underperformed the index, which is
capitalization weighted. That's made it difficult for most active investment
managers to keep up with the S&P 500 this year.
PERFORMANCE
In our case, we underperformed the market modestly in the first half. For
the six months ended June 30, 1998, the U.S. Equity Portfolio returned 14.34%.
By comparison, the S&P 500 rose 17.71% for the same period. The U.S. Equity
Portfolio's relative performance was hurt by an underweighting in the
technology sector, which did very well, and an overweighting in energy stocks,
which were generally weak. On the positive side, we overweighted in a couple of
industries -- cable and retail -- within the consumer cyclical sector that were
very strong this period. We were also helped by large weightings within the
consumer staples, pharmaceuticals, and healthcare areas.
As far as individual names that impacted performance, we benefited nicely
from AirTouch Communications, Inc., one of our larger holdings, which was up in
the first half. On the other hand, we were overweighted in International
Business Machines Corporation, which turned out to be one of the few technology
stocks that did not keep up with the market. The stock still looks like a very
good value to us going forward, however, as more of their business is moving
into the service area. We were also quite underweighted in Microsoft
Corporation, a stock that continues to defy gravity from the point of
valuations, in our opinion. While Microsoft Corporation is a stock that long
term we want to own, it simply looks overvalued at current levels.
OUTLOOK
Our outlook with regard to equities is still cautious. While there are
several positives surrounding the general market, including low inflation and a
healthy liquidity background, we simply can't justify stock valuations in most
cases. Moreover, there's concern about earnings per share slowing in the second
half of this year. Indeed, the large premium being placed on large-cap stocks
right now is probably a reflection of their superior ability to deliver
earnings in a difficult environment. We think, however, there's too much of a
premium currently being placed on those large-cap stocks. Ultimately, we
suspect valuations will come back into line and, with that, the market should
broaden out and allow an active manager to do better versus the indexes.
[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.
30 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. U.S. EQUITY PORTFOLIO AND THE STANDARD & POOR'S INDEX OF 500 COMMON STOCKS
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 31
<PAGE>
WRL SERIES FUND, INC.
THIRD AVENUE VALUE PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
INVESTMENT APPROACH
The Third Avenue Value Portfolio focuses on finding stocks of
fundamentally strong companies selling at discounted prices. We look for
opportunities to "average down" in positions in which we believe there to be
good values. The Portfolio took advantage of market dips to focus its efforts
and resources on "averaging down" in existing positions while identifying and
acquiring several new positions, but, all together, this was a difficult
period. At period end, the Portfolio held positions in 26 companies and was
91.9% invested. From its inception on January 2, 1998, through June 30, 1998,
the Third Avenue Value Portfolio declined (4.09)%. By comparison, the Standard
& Poor's Index of 500 Common Stocks returned 17.71% for the same period.
During the period, there were, and continue to be, bear markets in two
sectors that we believe have outstanding long-term growth potential --
technology and Japanese non-life insurance stocks.
OPPORTUNITIES IN TECHNOLOGY
In our opinion, the semiconductor equipment industry will experience
explosive growth over the long term, more so even than it has in the past. The
engines of growth will not only be increasing demand from a wide variety of
sources which are going digital, but also from technological innovation which
will induce semiconductor manufacturers to re-equip their facilities. To be
sure, the industry is highly cyclical and will always have boom and bust
characteristics, but the industry is fast moving, highly competitive, and
highly innovative. Of course, no matter how much the industry prospers, not
every company will prosper; some will fall by the wayside. Our intention is to
acquire common stocks of well-financed companies which are already public at
prices lower than what we think a first stage venture capitalist would have to
pay.
JAPAN
In buying the common stocks of Japanese financial institutions, we have
concentrated on non-life insurance companies. Non-life insurance companies seem
to be the only financial institutions in Japan, a capital short economy, with
tremendous amounts of surplus or excess capital. And given Japan's aging
population, there seems to be a huge amount of growth opportunities in
marketing products to the elderly, including investment funds, pension plans,
nursing homes, health care, and vacation packages.
OUTLOOK
Judgments about future growth potentials for buy and hold fundamentalists
seem sounder when they are based more on qualitative reasoning about an
industry outlook than on quantitative linear projections of a past earnings
trend. Put otherwise, we are convinced that semiconductor equipment will be a
growth industry despite a lack of earnings progress in 1998, and for all we
know at this time, 1999.
Virtually everyone on Wall Street defines growth based on such
quantitative linear projections based on past earnings. We think relying only
on past earnings is a dangerous way to analyze if you are a buy and hold
fundamentalist. As a buy and hold fundamentalist, one needs a more balanced and
patient approach.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Martin J. Whitman
Third Avenue Value Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
32 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
THIRD AVENUE VALUE PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. THIRD AVENUE VALUE PORTFOLIO AND THE STANDARD & POOR'S INDEX OF 500 COMMON
STOCKS
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 33
<PAGE>
WRL SERIES FUND, INC.
REAL ESTATE SECURITIES PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the period ended June 30, 1998
(unaudited)
----------------------------------
THIS PERIOD
The Real Estate Securities Portfolio commenced operations May 1, 1998,
with an objective of long-term total return from investments primarily in
equity securities of real estate companies. During the two months the Portfolio
was effective, the real estate investment trust (REIT) market continued a
decline that began earlier in the year. Although substantially outperforming
the Russell 2000 Index, REITs underperformed the Standard & Poor's Index of 500
Common Stocks ("S&P 500"). Year to date, REITs are trailing the S&P 500 by a
considerable margin.
Among real estate property sectors, performance varied widely; retail
REITs posted the best returns, followed by residential REITs, office/industrial
REITs, and companies classified in the other property sector. Among sub-sectors
or industries, regional malls posted the highest returns during the period with
strip centers and diversified REITs close behind. Self-storage REITs and hotels
continued to lag the broader market.
PERFORMANCE
From its inception on May 1, 1998, through June 30, 1998, the Real Estate
Securities Portfolio declined 2.15%. By comparison, the Morgan Stanley REIT
Index was down 4.39%. Within the Portfolio, the stocks having the greatest
positive impact for this short period included: Apartment Investment &
Management Company, one of the largest apartment owners in the U.S.; Reckson
Services Industries, Inc., a diversified REIT which provides various property
services; and Excel Realty Trust, Inc., an owner of properties located
primarily in shopping centers throughout the country. Stocks that had a
negative impact on the Portfolio were: Arden Realty, Inc., which owns a large
portfolio of suburban office properties in the Los Angeles basin; FelCor Suite
Hotels, Inc.; and Post Properties, Inc., one of the premier developers and
owners of luxury apartments in the southeast and southwest.
OUTLOOK
With the U.S. economy continuing to exhibit strong job and income growth,
commercial real estate fundamentals remain solid. That being said, however, a
worsening trade balance, declining manufacturing payrolls, and slower inventory
accumulation suggest that economic growth may be poised to slow. All of this
together implies slower, but still positive, net absorption and rent growth in
the coming months. In addition, our analysis of construction activity
nationwide suggests that new supply will stay in balance through 1999.
Conditions in some metropolitan areas, however, are likely to deteriorate due
to increasing supply and moderating demand.
Since their pool of easy capital has been drained, REITs are looking at
other sources of funds, including the sale of lower yielding properties and
re-deployment of assets into projects that will add long-term value to
shareholders. Given our continued expectations of solid growth for direct real
estate, double-digit cash flow growth for REITs and their recent relative
underperformance, we continue to believe an over-weighting to the sector is
justified.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Daniel P. O'Connor
Real Estate Securities Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
34 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
REAL ESTATE SECURITIES PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY (continued)
For the period ended June 30, 1998
(unaudited)
----------------------------------
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. REAL ESTATE SECURITIES PORTFOLIO AND THE MORGAN STANLEY REIT INDEX
[GRAPHIC OMITTED]
1 9 9 8 S e m i - A n n u a l R e p o r t 35
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
COMMERCIAL PAPER (59.54%)
AUTOMOTIVE (3.43%)
Ford Motor Credit Company
5.49%, due 07/08/98 ............................. $ 5,000 $ 4,995
COMMERCIAL BANKS (40.32%)
Abbey National Treasury Services (a)
5.48%, due 06/01/99 ............................. 5,000 4,995
CXC Inc.
5.50%, due 07/06/98 ............................. 5,000 4,996
CXC Inc.
5.53%, due 07/16/98 ............................. 2,000 1,995
Diageo Capital Plc
5.37%, due 08/12/98 ............................. 5,000 4,969
Diageo Capital Plc
5.44%, due 09/02/98 ............................. 1,000 990
Generale Bank Nederland NV
5.50%, due 09/10/98 ............................. 5,000 4,946
Halifax Plc
5.48%, due 09/21/98 ............................. 7,000 6,913
SunTrust Banks, Inc.
6.88%, due 08/12/98 ............................. 5,000 4,960
SunTrust Banks, Inc.
5.49%, due 09/09/98 ............................. 1,000 989
The Bank of New York Company, Inc.
5.49%, due 09/21/98 ............................. 5,000 4,937
U.S. Bancorp
5.52%, due 07/24/98 ............................. 5,000 4,982
Wachovia Bank NA
5.52%, due 08/12/98 ............................. 6,000 5,961
Windmill Funding Corporation
5.55%, due 07/08/98 ............................. 7,062 7,054
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.43%)
General Electric Capital Corporation (a)
5.93%, due 05/04/99 ............................. 5,000 5,000
FINANCE (4.67%)
Province of Quebec
5.48%, due 12/30/98 ............................. 3,000 2,917
Province of Quebec
5.50%, due 01/11/99 ............................. 4,000 3,881
OIL & GAS EXTRACTION (3.43%)
Atlantic Richfield Company
5.55%, due 08/14/98 ............................. 5,000 4,966
PRINCIPAL MARKET
COMMERCIAL PAPER (CONTINUED AMOUNT VALUE
--------- --------
PETROLEUM & PETROLEUM PRODUCTS (4.26%)
Koch Industries, Inc.
6.30%, due 07/01/98 ............................. $ 6,201 $ 6,201
-------
Total Commercial Paper
(cost: $ 86,647)............................................. 86,647
-------
SHORT-TERM OBLIGATIONS (16.49%)
FINANCE (1.37%)
Asset-Backed Securities Investment
Trust - 144A (a)(b)
5.66%, due 08/17/98 ............................. 2,000 2,000
COMMERCIAL BANKS (15.12%)
American Express Centurion Bank (a)
5.60%, due 05/07/99 ............................. 1,000 1,000
Bank Boston NA (a)
5.76%, due 10/06/98 ............................. 5,000 4,999
Bankers Trust New York (a)
5.53%, due 07/07/98 ............................. 1,000 1,000
Corestates Bank NA (a)
5.60%, due 05/14/99 ............................. 5,000 5,000
Keybank NA (a)
5.74%, due 07/31/98 ............................. 5,000 5,000
Old Kent Bank (a)
5.65%, due 11/04/98 ............................. 5,000 5,000
-------
Total Short-Term Obligations
(cost: $ 23,999)............................................. 23,999
-------
CERTIFICATES OF DEPOSITS (24.05%)
Bank of America National Trust &
Savings Association
5.63%, due 02/26/99 ............................. 2,000 1,999
Bank of Nova Scotia (a)
5.52%, due 06/07/99 ............................. 5,000 4,996
The Bank of New York Company, Inc.
5.64%, due 03/26/99 ............................. 2,000 1,999
Commerzbank AG
5.67%, due 03/05/99 ............................. 3,000 2,999
Creditanstalt AG
5.89%, due 11/17/98 ............................. 4,000 4,002
Deutsche Bank AG
5.73%, due 04/15/99 ............................. 3,000 2,999
Harris Trust & Savings Bank
5.57%, due 08/25/98 ............................. 6,000 6,000
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
36 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CERTIFICATES OF DEPOSITS (CONTINUED)
NationsBank Corporation
5.55%, due 07/16/98 ........................... $ 2,000 $ 2,000
NationsBank Corporation
5.60%, due 09/04/98 ........................... 1,000 1,000
Societe General New York (a)
5.57%, due 05/26/99 ........................... 5,000 5,000
Swiss Bank Corporation New York
5.64%, due 03/23/99 ........................... 2,000 1,999
---------
Total Certificates of Deposits
(cost: $ 34,993)............................................... 34,993
---------
Total Investment Securities
(cost: $ 145,639).............................................. $ 145,639
=========
SUMMARY
Investments, at market value ..................... 100.08% $ 145,639
Other liabilities in
excess of assets .............................. (0.08%) (119)
------ ---------
Net assets ....................................... 100.00% $ 145,520
====== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Floating rate note. Rate listed is as of June 30, 1998.
(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.
1 9 9 8 S e m i - A n n u a l R e p o r t 37
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
U.S. GOVERNMENT OBLIGATIONS (29.06%)
U.S. Treasury Bonds
7.25%, due 05/15/16 ............ $ 5,000 $ 5,852
U.S. Treasury Bonds
6.25%, due 08/15/23 ............ 5,000 5,354
U.S. Treasury Bonds (b)
6.50%, due 11/15/26 ............ 3,000 3,333
U.S. Treasury Notes (b)
5.88%, due 11/30/01 ............ 5,000 5,048
U.S. Treasury Notes (b)
5.75%, due 10/31/02 ............ 7,000 7,052
U.S. Treasury Notes (b)
6.63%, due 05/15/07 ............ 7,500 8,047
U.S. Treasury Notes (b)
6.13%, due 08/15/07 ............ 6,000 6,239
-------
Total U.S. Government Obligations
(cost: $ 40,129).............................. 40,925
-------
MORTGAGE-BACKED SECURITY (1.80%)
Aetna Commercial Mortgage Trust
6.71%, due 01/15/06 ............ 2,500 2,527
-------
Total Mortgage-Backed Security
(cost: $ 2,559)............................... 2,527
-------
ASSET-BACKED SECURITIES (4.28%)
CIT RV Trust 1998-A
6.09%, due 02/15/12 ............ 2,000 2,004
Citibank Credit Card Master Trust I
6.05%, due 01/15/10 ............ 2,000 2,016
CSTX Trade Receivable Master Trust
6.00%, due 07/26/04 ............ 2,000 2,001
-------
Total Asset-Backed Securities
(cost: $ 5,963)............................... 6,021
CORPORATE DEBT SECURITIES (56.69%)
AUTO REPAIR, SERVICES & PARKING (1.92%)
Ryder System, Inc.
9.25%, due 05/15/01 ............ 2,500 2,703
AUTOMOTIVE (5.93%)
Daimler-Benz of North America, Inc.
7.38%, due 09/15/06 ............ 2,000 2,153
Ford Motor Credit Company
6.75%, due 08/15/08 ............ 2,000 2,060
General Motors Corporation
7.13%, due 05/01/03 ............ 4,000 4,130
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
CORPORATE DEBT SECURITIES (CONTINUED)
BUSINESS CREDIT INSTITUTIONS (2.87%)
FINOVA Capital Corporation
6.50%, due 07/28/02 ............ $ 2,000 $ 2,023
Heller Financial, Inc.
6.44%, due 10/06/02 ............ 2,000 2,019
CHEMICALS & ALLIED PRODUCTS (2.22%)
Praxair, Inc.
6.90%, due 11/01/06 ............ 3,000 3,128
COMMERCIAL BANKS (8.90%)
NationsBank Corporation
7.50%, due 09/15/06 ............ 3,000 3,244
PNC Bank Corp.
6.88%, due 07/15/07 ............ 3,000 3,105
Skandinaviska Enskilda Banken (a)
6.50%, due 12/29/49 ............ 2,000 2,006
Swiss Bank Corporation
6.75%, due 07/15/05 ............ 2,000 2,063
Swiss Bank Corporation
7.00%, due 10/15/15 ............ 2,000 2,118
COMPUTER & OFFICE EQUIPMENT (1.49%)
International Business Machines
Corporation
7.25%, due 11/01/02 ............ 2,000 2,103
DEPARTMENT STORES (3.01%)
J.C. Penney Company, Inc.
7.60%, due 04/01/07 ............ 2,000 2,158
Sears Roebuck Acceptance
Corporation
7.00%, due 06/15/07 ............ 2,000 2,085
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.47%)
General Electric Capital
Corporation
6.50%, due 11/01/06 ............ 2,000 2,065
FINANCE (9.90%)
Fannie Mae
5.25%, due 01/15/03 ............ 5,000 4,915
Fannie Mae
5.75%, due 02/15/08 ............ 5,000 4,974
Fannie Mae
7.00%, due 08/25/10 ............ 2,000 2,087
Federal National Conversion Issue
6.00%, due 06/01/13 ............ 2,000 1,980
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
38 W R L S e r i e s F u n d , I n c.
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
CORPORATE DEBT SECURITIES (CONTINUED)
FOOD & KINDRED PRODUCTS (2.17%)
Campbell Soup Company
6.90%, due 10/15/06 .................... $ 1,000 $ 1,056
CPC International, Inc.
6.15%, due 01/15/06 .................... 2,000 2,000
GAS PRODUCTION & DISTRIBUTION (1.54%)
Tennessee Gas Pipeline Company
7.50%, due 04/01/17 .................... 2,000 2,170
MORTGAGE BANKERS AND BROKERS (2.92%)
Captiva Finance Ltd. (a)
6.86%, due 11/30/09 .................... 2,000 2,032
The Money Store, Inc.
7.30%, due 12/01/02 .................... 2,000 2,073
OIL & GAS EXTRACTION (0.72%)
Mitchell Energy &
Development Corp
6.75%, due 02/15/04 .................... 1,000 1,019
PERSONAL CREDIT INSTITUTIONS (0.82%)
Capital One Bank
6.74%, due 05/31/99 .................... 250 251
Capital One Bank
6.42%, due 11/12/99 .................... 500 501
Capital One Bank
6.66%, due 06/19/00 .................... 400 403
PETROLEUM REFINING (1.51%)
Texaco Capital Inc.
7.09%, due 02/01/07 .................... 2,000 2,125
PRINTING & PUBLISHING (1.49%)
Tribune Company
6.88%, due 11/01/06 .................... 2,000 2,095
RAILROADS (0.75%)
CSX Corporation
7.25%, due 05/01/04 .................... 1,000 1,056
RUBBER & MISC. PLASTIC PRODUCTS (0.74%)
Rubbermaid, Inc.
6.60%, due 11/15/06 .................... 1,000 1,035
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
CORPORATE DEBT SECURITIES (CONTINUED)
SECURITY & COMMODITY BROKERS (2.92%)
Merrill Lynch & Co., Inc.
6.56%, due 12/16/07 .................... $ 2,000 $ 2,033
Morgan Stanley, Dean
Witter and Co.
6.88%, due 03/01/07 .................... 2,000 2,075
TELECOMMUNICATIONS (1.10%)
MCI Communications Corporation
6.95%, due 08/15/06 .................... 1,500 1,549
WHOLESALE TRADE NONDURABLE GOODS (2.30%)
Sysco Corporation
7.25%, due 04/15/07 .................... 3,000 3,233
---------
Total Corporate Debt Securities
(cost: $ 77,799)..................................... 79,825
---------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (6.74%)
Fannie Mae
5.75%, due 07/01/98 .................... 5,500 5,500
Fannie Mae
5.75%, due 07/06/98 .................... 4,000 3,997
---------
Total Short-Term U.S.
Government Obligations
(cost: $ 9,497).....................................
9,497
---------
Total Investment Securities
(cost: $ 135,947)...................................
$ 138,795
=========
SUMMARY
Investments, at market value ......... 98.57% $ 138,795
Other assets in
excess of liabilities ............. 1.43% 2,014
----- ---------
Net assets ........................... 100.00% $ 140,809
====== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 24,873. See footnote 1F of the
financial statements.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 39
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- ---------
CONVERTIBLE BOND (0.03%)
ELECTRONIC COMPONENTS & ACCESSORIES (0.03%)
Lernout & Hauspie Speech Products
N.V. - 144A (c)
8.00%, due 11/15/01 ......................... $ 148 $ 845
--------
Total Convertible Bond
(cost: $ 148)............................................... 845
--------
NUMBER OF MARKET
SHARES VALUE
--------- --------
PREFERRED STOCK (0.03%)
COMPUTER & DATA PROCESSING SERVICES (0.03%)
SAP AG - Vorzug ................................ 1,165 $ 791
--------
Total Preferred Stock
(cost: $ 385).............................................. 791
--------
COMMON STOCKS (96.34%)
AIR TRANSPORTATION (0.09%)
UAL Corporation (a) ............................ 28,845 2,250
BEVERAGES (1.58%)
Coca-Cola Company .............................. 455,850 38,975
CHEMICALS & ALLIED PRODUCTS (3.58%)
Gillette Company (b) ........................... 1,137,220 64,466
Monsanto Company ............................... 420,950 23,521
Solutia Inc. ................................... 18,629 534
COMMERCIAL BANKS (10.14%)
Banca Commerciale Italiana (a) ................. 6,818,345 40,836
BankAmerica Corporation ........................ 1,247,475 107,829
Chase Manhattan Corporation .................... 653,150 49,313
Citicorp ....................................... 351,790 52,505
COMMUNICATION (0.87%)
Level 3
Communications, Inc. (a) (b) ................ 8,925 660
Nextel Communications, Inc. -
Class A (a) (b) ............................. 833,390 20,731
COMMUNICATIONS EQUIPMENT (9.23%)
Advanced Fibre
Communications, Inc. (a) (b) ................ 412,425 16,523
Ascend Communications, Inc. (a) ................ 14,935 740
CIENA Corporation (a) .......................... 722,360 50,294
Harmonic Lightwaves, Inc. (a) .................. 11,920 183
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
Intelect Communications,
Inc. (a) (b) ................................ 29,805 $ 164
Lucent Technologies, Inc. ...................... 520,930 43,335
Nokia Oyj - Sponsored ADR ...................... 1,574,250 114,232
Northern Telecom Limited ....................... 17,885 1,015
Powerwave Technologies,
Inc. (a) (b) ................................ 5,975 100
QUALCOMM, Inc. (a) (b) ......................... 8,775 493
Tellabs, Inc. (a) (b) .......................... 8,920 639
ViaSat, Inc. (a) ............................... 20,000 384
COMPUTER & DATA PROCESSING SERVICES (16.22%)
America Online, Inc. (a) (b) ................... 877,460 93,011
Aspen Technology, Inc. (a) ..................... 5,900 298
BMC Software, Inc. (a) ......................... 22,680 1,178
Cadence Design Systems, Inc. (a) ............... 60,760 1,899
Computer Associates
International, Inc. ......................... 3,570 198
Compuware Corporation (a) ...................... 11,400 583
HBO & Company (b) .............................. 1,550,940 54,671
JBA Holdings Plc ............................... 12,434 129
META Group, Inc. (a) ........................... 20,212 447
Microsoft Corporation (a) ...................... 1,612,350 174,738
Parametric Technology
Company (a) ................................. 64,750 1,756
PeopleSoft, Inc. (a) (b) ....................... 1,408,826 66,215
Sapient Corporation (a) (b) .................... 34,450 1,817
Sun Microsystems, Inc. (a) ..................... 15,850 688
Vantive Corporation (a) ........................ 12,975 266
VERITAS Software
Corporation (a) ............................. 57,018 2,359
Visio Corporation (a) .......................... 10,575 505
COMPUTER & OFFICE EQUIPMENT (11.83%)
Cisco Systems, Inc. (a) ........................ 829,477 76,364
Dell Computer Corporation (a) .................. 2,307,670 214,181
EMC Corporation (a) (b) ........................ 17,960 805
International Business Machines
Corporation ................................. 7,050 809
ELECTRIC SERVICES (0.69%)
AES Corporation (a) (b) ........................ 325,525 17,110
ELECTRONIC COMPONENTS & ACCESSORIES (5.21%)
Analog Devices, Inc. (a) ....................... 32,183 790
ASM Lithography
Holding N.V. (a) (b) ........................ 19,050 554
Intel Corporation .............................. 667,910 49,509
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
40 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
JDS Fitel Inc. (a) .............................. 17,880 $ 298
Micron Technology, Inc. (a) (b) ................. 14,915 370
Texas Instruments Incorporated .................. 1,320,200 76,984
Vitesse Semiconductor
Corporation (a) .............................. 8,935 276
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.37%)
General Electric Company ........................ 1,185,450 107,876
FOOD STORES (1.14%)
Starbucks Corporation (a) ....................... 527,430 28,185
INDUSTRIAL MACHINERY & EQUIPMENT (0.02%)
Applied Materials, Inc. (a) ..................... 20,850 615
INSTRUMENTS & RELATED PRODUCTS (0.04%)
Uniphase Corporation (a) ........................ 14,870 934
MANAGEMENT SERVICES (0.03%)
Whittman-Hart, Inc. (a) ......................... 14,900 721
MANUFACTURING INDUSTRIES (0.04%)
Mattel, Inc. .................................... 22,670 959
MEDICAL INSTRUMENTS & SUPPLIES (0.02%)
Photoelectron Corporation (a) ................... 56,850 483
MOTION PICTURES (1.59%)
Time Warner, Inc. ............................... 460,215 39,320
PERSONAL CREDIT INSTITUTIONS (4.67%)
American Express Company ........................ 585,975 66,801
Household International, Inc. (b) ............... 977,325 48,622
PHARMACEUTICALS (19.75%)
American Home Products
Corporation .................................. 594,700 30,775
Astra AB - Class A Free ......................... 518,890 10,608
Astra AB - Sponsored ADR ........................ 59,665 1,223
Bristol-Myers Squibb Company .................... 444,983 51,145
Eli Lilly and Company ........................... 1,272,425 84,060
Pfizer, Inc. .................................... 1,232,700 133,979
SmithKline Beecham Plc .......................... 132,776 1,622
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ------------
PHARMACEUTICALS (CONTINUED)
SmithKline Beecham Plc -
Sponsored ADR .................................. 899,005 $ 54,390
Warner-Lambert Company ............................ 1,729,725 120,000
RETAIL TRADE (2.09%)
Costco Companies, Inc. (a) ........................ 818,905 51,642
SECURITY & COMMODITY BROKERS (2.45%)
Merrill Lynch & Co., Inc. (b) ..................... 656,352 60,548
TELECOMMUNICATIONS (0.69%)
AT&T Corporation .................................. 297,000 16,966
-----------
Total Common Stocks
(cost: $ 1,288,885).......................................... 2,380,004
-----------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
SHORT-TERM U.S. GOVERNMENT
OBLIGATION (0.81%)
Fannie Mae
5.36%, due 07/23/98 ......................... $ 20,000 $ 19,935
-----------
Total Short-Term U.S. Government
Obligation
(cost: $ 19,935)............................................. 19,935
-----------
COMMERCIAL PAPER (2.78%)
CIT Group Holdings
6.10%, due 07/01/98 ............................ 68,600 68,600
-----------
Total Commercial Paper
(cost: $ 68,600).............................................. 68,600
-----------
Total Investment Securities
(cost: $ 1,377,953)........................................... $ 2,470,175
===========
SUMMARY
Investments, at market value ...................... 99.99% $ 2,470,175
Other assets in
excess of liabilities .......................... .0.01% 187
----- -----------
Net assets ........................................ 100.00% $ 2,470,362
====== ===========
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 41
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET
VALUE PERCENTAGE
---------- ----------
Canada ................................. $ 298 0.01%
Germany ................................ 791 0.03%
Great Britain .......................... 1,751 0.07%
Italy .................................. 40,836 1.65%
Sweden ................................. 10,608 0.43%
United States .......................... 2,415,891 97.81%
----------- -----
Investments, at market value ......... $ 2,470,175 100.00%
=========== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 133,823. See footnote 1F to the
financial statements.
(c) 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.
42 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
---------- --------
PREFERRED STOCKS (1.19%)
AUTOMOTIVE (0.46%)
Porsche AG ...................................... 1,677 $ 4,835
ELECTRIC SERVICES (E)
Companhia Energetica
de Minas Gerais - ADR ........................ 395 (f)
INSURANCE (0.73%)
Marschollek, Lautenschlaeger und
Partner AG ................................... 15,747 7,684
-------
Total Preferred Stocks
(cost: $ 9,637)............................................... 12,519
-------
COMMON STOCKS (99.34%)
AIR TRANSPORTATION (0.51%)
SAS Danmark A/S (b) ............................. 96,656 1,942
SAS Norge ASA - Class B ......................... 55,250 945
SAS Sverige AB .................................. 138,765 2,489
AUTOMOTIVE (2.19%)
Bayerische Motoren Werke AG ..................... 2,939 2,974
Bayerische Motoren Werke
AG - New (a) ................................. 880 878
Honda Motor Company, Ltd. ....................... 63,000 2,245
Renault SA (a) .................................. 253,820 14,442
Volkswagen AG ................................... 2,530 2,445
BEER, WINE, & DISTILLED BEVERAGES (0.89%)
Companhia Cervejaria Brahma -
Sponsored ADR (b) ............................ 109,815 1,373
Diageo Plc ...................................... 185,402 2,199
Kirin Brewery Company, Ltd. ..................... 605,000 5,717
BEVERAGES (0.30%)
Coca-Cola Femsa S.A. -
Sponsored ADR (b) ............................ 58,335 1,014
Fomento Economico Mexicano,
SA de C.V. - Class B ......................... 68,720 2,153
BUSINESS CREDIT INSTITUTIONS (0.02%)
Credit Communal Holding/
Dexia (c) .................................... 1,372 207
BUSINESS SERVICES (2.84%)
Merkantildata ASA ............................... 195,925 2,480
Securitas AB - Class B (b) ...................... 501,747 24,574
SEMA Group Plc .................................. 235,016 2,788
CHEMICALS & ALLIED PRODUCTS (6.62%)
Akzo Nobel N.V. ................................. 82,247 18,288
Estee Lauder Companies -
Class A (b) .................................. 45,465 3,168
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
E. I. du Pont de Nemours and
Company ...................................... 68,405 $ 5,105
Hoechst AG ...................................... 113,726 5,723
Imperial Chemical Industries Plc ................ 304,374 4,891
Kao Corporation ................................. 146,000 2,254
Merck KGaA ...................................... 82,308 3,692
Monsanto Company ................................ 309,540 17,296
SNIA BPD S.p.A. (c) ............................. 3,400,000 4,156
Solutia Inc. .................................... 171,580 4,922
COMMERCIAL BANKS (11.06%)
Banca Commerciale Italiana (a) .................. 1,793,364 10,741
Banca di Roma (a) ............................... 4,227,139 8,548
Banco Bilbao Vizcaya, S.A. ...................... 10,386 533
Banco Central Hispanoamericano .................. 91,634 2,881
Bank Austria AG (b) ............................. 85,449 6,955
Bank Austria AG - rights ........................ 85,449 (f)
BankAmerica Corporation ......................... 40,800 3,527
BG Bank A/S ..................................... 46,512 2,885
Corporacion Bancaria
de Espana SA ................................. 142,000 3,186
Credit Commercial de France ..................... 24,039 2,024
Credit Suisse Group -
Registered Shares ............................ 25,643 5,710
Den Norske Bank ASA ............................. 187,917 986
Deutsche Bank AG (b) ............................ 143,561 12,147
Deutsche Pfandbrief-und
Hypothekenbank AG ............................ 67,291 5,388
Dresdner Bank AG ................................ 22,135 1,197
Erste Bank Der Oesterreichischen
Sparkassen AG -
Sponsored GDR (a) (c) ........................ 30,503 1,851
ING Groep N.V. .................................. 48,566 3,181
Lloyds TSB Group Plc ............................ 1,045,333 14,640
Merita Ltd. - Class A ........................... 256,574 1,694
National Australia Bank, Ltd. ................... 28,534 377
National Westminster Bank Plc ................... 85,894 1,537
Royal Bank of Canada (b) ........................ 23,973 1,442
Skandinaviska Enskilda Banken -
Class A ...................................... 300,636 5,147
UBS AG .......................................... 49,950 18,585
Uniao de Bancos Brasileiros S.A. -
Sponsored GDR ................................ 13,985 413
Unidanmark A/S - Class A ........................ 4,843 435
COMMUNICATION (3.21%)
Comcast Corporation - Class A ................... 262,550 10,658
MediaOne Group Inc. (a) ......................... 26,110 1,147
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 43
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
COMMUNICATION (CONTINUED)
Tele-Communications, Inc. -
Class A (a) (b) ................................ 568,160 $ 21,839
COMMUNICATIONS EQUIPMENT (1.97%)
Nokia Oyj - Sponsored ADR ......................... 116,665 8,466
NTT Data Corporation (b) .......................... 162 5,855
Telefonaktiebolaget LM Ericsson -
Sponsored ADR (b) .............................. 222,866 6,380
COMPUTER & DATA PROCESSING SERVICES (12.70%)
Alcatel Alsthom ................................... 21,829 4,446
Alcatel Alsthom - Sponsored ADR.................... 3,875 158
American Management Systems,
Incorporated (a) ............................... 40,585 1,215
Atos SA (a) ....................................... 40,295 9,667
Cap Gemini SA (b) ................................. 122,671 19,282
Getronics NV ...................................... 118,637 6,154
Intuit Inc. (a) ................................... 78,580 4,813
JBA Holdings Plc .................................. 141,397 1,464
Logica Plc ........................................ 574,408 18,637
Microsoft Corporation (a) ......................... 266,650 28,897
Misys Plc ......................................... 212,179 12,067
Parametric Technology
Company (a) (b) ................................ 422,830 11,469
PeopleSoft, Inc. (a) (b) .......................... 141,880 6,668
Tieto Corporation - Class B ....................... 107,259 8,159
COMPUTER & OFFICE EQUIPMENT (2.55%)
Cisco Systems, Inc. (a) ........................... 290,600 26,753
CONSTRUCTION (E)
Suez Lyonnaise des Eaux ........................... 1 (f)
ELECTRIC SERVICES (0.57%)
Companhia Energetica de Minas
Gerais - Sponsored ADR (b) ..................... 4,895 152
Endesa S.A. ....................................... 94,310 2,064
Mosenergo - Sponsored ADR -
144A (a) (c) ................................... 23,080 115
Siemens AG ........................................ 59,468 3,632
ELECTRICAL GOODS (0.72%)
CBS Corporation (b) ............................... 236,980 7,524
ELECTRONIC COMPONENTS & ACCESSORIES (2.39%)
ASM Lithography
Holding N.V. (a) (b) ........................... 25,345 737
Electrocomponents Plc ............................. 825,506 6,481
Simac Techniek N.V. ............................... 35,288 7,409
Texas Instruments Incorporated .................... 179,975 10,495
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- --------
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (6.94%)
Electrolux AB - Series B .......................... 886,465 $ 15,232
General Electric Company Plc ...................... 647,504 5,586
Rohm Company Ltd. ................................. 16,000 1,645
Royal Philips Electronics N.V. .................... 165,632 13,927
Royal Philips Electronics N.V. -
ADR - NY Registered Shares (b).................. 222,659 18,926
Sony Corporation .................................. 202,500 17,456
ENVIRONMENTAL SERVICES (2.74%)
Rentokil Initial Plc .............................. 3,256,831 23,446
Vivendi ........................................... 24,658 5,267
FOOD STORES (0.31%)
Disco S.A. - Sponsored ADR (a) .................... 50,550 1,618
Starbucks Corporation (a) ......................... 31,185 1,666
FOOD & KINDRED PRODUCTS (1.75%)
Danone ............................................ 21,913 6,044
Koninklijke Numico N.V. ........................... 169,532 5,310
Raisio Group Plc .................................. 385,840 7,010
HOLDING & OTHER INVESTMENT OFFICES (0.53%)
Amvescap Plc ...................................... 309,902 3,028
Dexia France ...................................... 7,555 1,018
First Pacific Company Ltd. ........................ 1,605,250 673
Lagardere S.C.A. .................................. 2,352 98
Schroders Plc ..................................... 29,739 768
INDUSTRIAL MACHINERY & EQUIPMENT (1.85%)
Compagnie Francaise d'Etudes et de
Construction Technip ........................... 22,995 2,812
Siebe Plc ......................................... 830,073 16,596
INSURANCE (2.06%)
Assicurazioni Generali ............................ 89,777 2,907
Istituto Nazionale delle
Assicurazioni (b) .............................. 757,804 2,159
Muenchener Rueckversicherungs-
Gesellschaft AG ................................ 7,857 3,903
Royal & Sun Alliance Insurance
Group Plc ...................................... 297,707 3,081
Storebrand ASA (a) (b) ............................ 114,848 1,019
Zurich Versicherungs-Gesellschaft ................. 13,387 8,549
INSURANCE AGENTS, BROKERS & SERVICE (1.32%)
Allianz AG ........................................ 8,003 2,669
Allianz AG - New (a) .............................. 235 78
ERGO Versicherungs Gruppe AG ...................... 28,834 5,180
Pohjola Insurance Group - Class B ................. 20,100 997
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
44 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INSURANCE AGENTS, BROKERS & SERVICE (CONTINUED)
Sampo Insurance Company Ltd. -
Class A ........................................... 103,702 $4,918
LIFE INSURANCE (1.05%)
Schweizerische Lebensversicherungs-
und Rentenanstalt ................................. 13,028 11,036
MACHINERY, EQUIPMENT & SUPPLIES (0.94%)
Alstom (a) ........................................... 98,069 3,229
Mannesmann AG ........................................ 64,930 6,678
MANUFACTURING INDUSTRIES (4.31%)
Assa Abloy AB - Class B Free ......................... 558,863 21,975
Mattel, Inc. ......................................... 28,495 1,206
PolyGram NV .......................................... 16,611 848
Sulzer AG ............................................ 294 232
Tomkins Plc .......................................... 55,034 299
Tyco International Ltd. .............................. 319,765 20,145
Williams Plc ......................................... 73,217 471
MEDICAL INSTRUMENTS & SUPPLIES (0.05%)
United States Surgical Corporation.................... 11,185 510
MOTION PICTURES (1.17%)
Time Warner, Inc. .................................... 143,780 12,284
MOTOR VEHICLES, PARTS & SUPPLIES (0.27%)
Valeo SA ............................................. 27,296 2,791
OIL & GAS EXTRACTION (0.74%)
Lukoil Holding - Sponsored
ADR (b) ........................................... 9,295 311
Total SA - Class B ................................... 34,376 4,471
YPF Sociedad Anonima -
Sponsored ADR ..................................... 98,450 2,960
PAPER & PAPER PRODUCTS (0.01%)
Kimberly-Clark de Mexico, SA de
CV - Class A ...................................... 27,500 97
PERSONAL CREDIT INSTITUTIONS (0.20%)
Household International, Inc. (b) .................... 42,390 2,109
PERSONAL SERVICES (1.29%)
Hays Plc ............................................. 719,928 12,085
Kuoni Reisen AG - Class B ............................ 290 1,441
PETROLEUM REFINING (1.52%)
Elf Aquitaine SA ..................................... 113,094 15,905
PHARMACEUTICALS (7.10%)
Ares-Serono Group - Class B .......................... 1,069 1,488
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- --------
PHARMACEUTICALS (CONTINUED)
Astra AB - Class A Free .............................. 381,078 $7,791
Elan Corporation plc - Sponsored
ADR (a) (b) ....................................... 66,605 4,284
Eli Lilly and Company ................................ 62,055 4,100
Grupo Casa Autrey S.A. de C.V. -
Sponsored ADR (b) ................................. 79,631 518
MedImmune, Inc. (a) .................................. 50,750 3,166
Novartis AG - Registered Shares ...................... 5,492 9,145
Novo Nordisk A/S - Class B ........................... 12,084 1,668
Pfizer, Inc. ......................................... 35,905 3,902
Pharmacia & Upjohn, Inc. ............................. 65,810 3,035
Rhone-Poulenc - Class A .............................. 109,463 6,176
Roche Holding AG ..................................... 113 1,110
Schering AG .......................................... 33,303 3,924
SmithKline Beecham Plc -
Sponsored ADR ..................................... 79,925 4,835
Takeda Chemical Industries ........................... 237,000 6,308
Warner-Lambert Company ............................... 161,493 11,204
Zeneca Group Plc ..................................... 43,907 1,886
PRIMARY METAL INDUSTRIES (0.01%)
Preussag AG .......................................... 435 156
PRINTING & PUBLISHING (1.43%)
Wolters Kluwer NV (b) ................................ 109,358 15,013
RADIO & TELEVISION BROADCASTING (0.49%)
Grupo Televisa S.A. - Sponsored
GDR (a) ........................................... 136,725 5,144
RESEARCH & TESTING SERVICES (1.07%)
Quintiles Transnational Corp. (a) .................... 21,825 1,074
WM-Data AB - Class B ................................. 291,885 10,141
RESTAURANTS (1.42%)
Compass Group Plc .................................... 760,512 8,752
Tele Pizza, S.A. (a) ................................. 571,060 6,146
RETAIL TRADE (0.41%)
Castorama Dubois ..................................... 4,836 851
Cifra SA de CV - Series C ............................ 140,800 196
Cifra SA de CV - Series V ............................ 57,783 87
Costco Companies, Inc. (a) ........................... 37,550 2,368
Ito-Yokado Co., Ltd. ................................. 16,000 754
SECURITY & COMMODITY BROKERS (0.27%)
Morgan Stanley, Dean Witter
and Co. ........................................... 17,510 1,600
Nomura Securites Company Ltd. ........................ 110,000 1,281
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 45
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
----------- -----------
COMMON STOCKS (CONTINUED)
STONE, CLAY & GLASS PRODUCTS (0.28%)
Cimpor-Cimentos de Portugal,
SGPS, SA ................................ 84,924 $ 2,986
TELECOMMUNICATIONS (8.90%)
China Telecom (Hong Kong)
Limited (a) (b) (c) ..................... 2,434,000 4,226
Cia. de Telecomunicaciones de
Chile S.A. - Sponsored ADR (b)........... 60,575 1,230
Energis Plc (a) ............................ 642,230 9,789
Hellenic Telecommunication
Organization SA (c) ..................... 33,597 862
Millicom International
Cellular S.A. (a) ....................... 13,235 579
Nippon Telegraph &
Telephone Corp. ......................... 2,461 20,417
Nokia Oyj - Class A ........................ 228,620 16,890
Nortel Inversora S.A. - ADR (d) ............ 121,025 3,010
Telecom Argentina Stet -
France Telecom S.A. -
Sponsored ADR (b) ....................... 13,050 389
Telecom Italia Mobile SpA .................. 311,765 1,903
Telecom Italia SpA (b) ..................... 1,225,426 8,957
Telefonaktiebolaget LM Ericsson -
Class B ................................. 223,198 6,523
Telefonica de Argentina S.A. -
Sponsored ADR (b) ....................... 99,990 3,243
Telefonica S.A. ............................ 78,350 3,624
Telefonos de Mexico SA - Class L -
Sponsored ADR (b) ....................... 57,180 2,748
WorldCom, Inc. (a) (b) ..................... 185,200 8,971
TOBACCO PRODUCTS (0.07%)
Tabacalera SA - Class A (c) ................ 37,121 760
WHOLESALE TRADE NONDURABLE GOODS (0.30%)
Hagemeyer N.V. ............................. 72,827 3,151
-----------
Total Common Stocks
(cost: $ 740,234)....................................... 1,042,203
-----------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
COMMERCIAL PAPER (2.68%)
CIT Group Holdings
6.10%, due 07/01/98 ..................... $ 28,100 $ 28,100
-----------
Total Commercial Paper
(cost: $ 28,100)........................................ 28,100
-----------
Total Investment Securities
(cost: $ 777,971)....................................... $ 1,082,822
===========
SUMMARY
Investments, at market value ............... 103.21% $ 1,082,822
Other liabilities in
excess of assets ........................ (3.21%) (33,631)
---------- -----------
Net assets ................................. 100.00% $ 1,049,191
========== ===========
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET
VALUE PERCENTAGE
------------ ----------
Australia .............................. $ 377 0.03%
Austria ................................ 8,805 0.81%
Belgium ................................ 207 0.02%
Canada ................................. 1,442 0.13%
Denmark ................................ 6,931 0.64%
Finland ................................ 39,668 3.66%
France ................................. 98,524 9.10%
Germany ................................ 73,183 6.76%
Great Britain .......................... 150,491 13.90%
Greece ................................. 862 0.08%
Hong Kong .............................. 4,899 0.45%
Italy .................................. 39,373 3.64%
Japan .................................. 63,931 5.90%
Mexico ................................. 2,533 0.23%
Netherlands ............................ 73,282 6.77%
Norway ................................. 5,430 0.50%
Portugal ............................... 2,986 0.28%
Spain .................................. 19,195 1.77%
Sweden ................................. 93,871 8.67%
Switzerland ............................ 57,296 5.29%
United States .......................... 339,536 31.37%
----------- -----
Investments, at market value ......... $ 1,082,822 100.00%
=========== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 87,491. See footnote 1F to the
financial statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(d) Affiliated company. See footnote 2C to the financial statements.
(e) Percentage is less than .01%.
(f) Market value is less than $ 1.
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.
46 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
U.S. GOVERNMENT OBLIGATIONS (10.31%)
U.S. Treasury Notes (b)
6.00%, due 10/15/99 .................. $ 5,000 $5,031
U.S. Treasury Notes (b)
6.38%, due 01/15/00 .................. 8,500 8,605
U.S. Treasury Notes (b)
6.13%, due 07/31/00 .................. 8,500 8,599
U.S. Treasury Notes (b)
6.13%, due 09/30/00 .................. 8,300 8,402
U.S. Treasury Notes (b)
6.38%, due 09/30/01 .................. 8,500 8,700
U.S. Treasury Notes
7.50%, due 11/15/01 .................. 8,500 8,997
U.S. Treasury Notes
6.25%, due 02/28/02 .................. 8,500 8,688
U.S. Treasury Notes
7.50%, due 02/15/05 .................. 3,000 3,318
------
Total U.S. Government Obligations
(cost: $ 59,814).................................... 60,340
------
CORPORATE DEBT SECURITIES (15.15%)
AEROSPACE (0.94%)
Lockheed Martin Corporation
7.45%, due 06/15/04 .................. 5,200 5,533
BUSINESS SERVICES (0.82%)
Olsten Corporation
7.00%, due 03/15/06 .................. 4,625 4,798
CHEMICALS & ALLIED PRODUCTS (0.31%)
Dexter Corporation
9.25%, due 12/15/16 .................. 356 371
M.A. Hanna Company
9.38%, due 09/15/03 .................. 1,250 1,420
COMMERCIAL BANKS (0.92%)
First Union Corporation
7.25%, due 02/15/03 .................. 2,600 2,714
J.P. Morgan & Company
Incorporated
7.63%, due 09/15/04 .................. 2,510 2,701
COMMUNICATIONS EQUIPMENT (1.15%)
Lucent Technologies, Inc.
6.90%, due 07/15/01 .................. 6,575 6,756
ELECTRIC SERVICES (4.54%)
Florida Power & Light Company
7.88%, due 01/01/13 .................. 6,500 6,793
PRINCIPAL MARKET
AMOUNT VALUE
CORPORATE DEBT SECURITIES (CONTINUED) --------- ------
ELECTRIC SERVICES (CONTINUED)
Interstate Power Company
8.63%, due 09/15/21 .................. $ 3,825 $4,088
Kentucky Utilities Company
8.55%, due 05/15/27 .................. 4,000 4,605
Old Dominion Electric Cooperative
8.76%, due 12/01/22 .................. 5,000 5,837
West Penn Power Company
8.88%, due 02/01/21 .................. 5,000 5,244
ELECTRICAL GOODS (0.39%)
Avnet, Inc.
6.88%, due 03/15/04 .................. 2,199 2,281
GAS PRODUCTION & DISTRIBUTION (0.19%)
ONEOK, Inc.
9.75%, due 12/01/20 .................. 1,000 1,111
HOTELS & OTHER LODGING PLACES (0.85%)
ITT Corporation
6.75%, due 11/15/05 .................. 5,175 4,968
INSTRUMENTS & RELATED PRODUCTS (0.99%)
Raytheon Company
6.50%, due 07/15/05 .................. 5,700 5,778
RAILROADS (1.33%)
Union Pacific Corporation
6.25%, due 03/15/99 .................. 3,000 3,004
Union Pacific Corporation
8.50%, due 01/15/17 .................. 4,596 4,774
TELECOMMUNICATIONS (2.72%)
AirTouch Communications, Inc.
7.00%, due 10/01/03 .................. 4,700 4,877
Alltel Corporation
7.25%, due 04/01/04 .................. 5,465 5,704
GTE Hawaiian Telephone
Company, Inc.
7.38%, due 09/01/06 .................. 5,000 5,323
------
Total Corporate Debt Securities
(cost: $ 87,264)...................................
88,680
------
CONVERTIBLE BONDS (6.21%)
ELECTRICAL GOODS (0.99%)
Kent Electronics
4.50%, due 09/01/04 .................. 7,000 5,828
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 47
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CONVERTIBLE BONDS (CONTINUED)
ENVIRONMENTAL SERVICES (1.24%)
USA Waste Services, Inc.
4.00%, due 02/01/02 ......................... $5,850 $ 7,298
HOTELS & OTHER LODGING PLACES (0.79%)
CapStar Hotel Company
4.75%, due 10/15/04 ......................... 5,675 4,625
INDUSTRIAL MACHINERY & EQUIPMENT (0.96%)
Robbins & Myers, Inc.
6.50%, due 09/01/03 ......................... 4,800 5,592
LUMBER & OTHER BUILDING MATERIALS (1.57%)
Home Depot, Inc.
3.25%, due 10/01/01 ......................... 5,000 9,188
OIL & GAS EXTRACTION (0.66%)
Nabors Industries, Inc.
5.00%, due 05/15/06 ......................... 3,025 3,849
-------
Total Convertible Bonds
(cost: $ 33,592)........................................... 36,380
------
NUMBER OF MARKET
SHARES VALUE
-------- -------
CONVERTIBLE PREFERRED STOCKS (5.09%)
COMMUNICATION (0.99%)
Nextel STRYPES Trust ........................... 260,000 $ 5,785
COMPUTER & DATA PROCESSING SERVICES (1.54%)
Microsoft Corporation .......................... 95,000 9,025
RADIO & TELEVISION BROADCASTING (1.57%)
Sinclair Broadcast Group, Inc. ................. 130,000 9,198
SECURITY & COMMODITY BROKERS (0.99%)
Merrill Lynch STRYPES .......................... 80,000 5,800
-------
Total Convertible Preferred Stocks
(cost: $ 27,621).......................................... 29,808
-------
COMMON STOCKS (62.39%)
APPAREL & ACCESSORY STORES (0.07%)
Saks Holdings, Inc. (a) ........................ 15,000 414
BEVERAGES (1.48%)
PepsiCo, Inc. .................................. 210,000 8,649
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) -------- -------
BUSINESS CREDIT INSTITUTIONS (0.32%)
CIT Group, Inc. - Class A ...................... 49,000 $ 1,838
BUSINESS SERVICES (1.05%)
AccuStaff, Inc. (a) (b) ........................ 197,500 6,172
CHEMICALS & ALLIED PRODUCTS (7.68%)
Colgate-Palmolive Company ...................... 103,400 9,099
E. I. du Pont de Nemours
and Company ................................. 92,000 6,866
Estee Lauder Companies -
Class A (b) ................................. 110,000 7,666
Gillette Company ............................... 116,560 6,607
Lawter International, Inc. ..................... 337,500 3,670
Morton International, Inc. ..................... 151,500 3,788
Procter & Gamble Company ....................... 80,000 7,285
COMMERCIAL BANKS (4.17%)
Compass Bancshares Inc. ........................ 150,500 6,791
Mellon Bank Corporation ........................ 147,500 10,269
Wells Fargo & Company .......................... 20,000 7,380
COMPUTER & OFFICE EQUIPMENT (1.06%)
Hewlett-Packard Company ........................ 104,000 6,227
EDUCATIONAL SERVICES (1.48%)
ITT Educational Services, Inc. (a) ............. 269,000 8,675
ELECTRICAL GOODS (1.89%)
CBS Corporation ................................ 200,000 6,350
Motorola, Inc. ................................. 90,000 4,731
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.65%)
Emerson Electric Company ....................... 100,000 6,038
General Electric Company ....................... 104,000 9,464
FINANCE (1.55%)
Fannie Mae ..................................... 149,000 9,052
FOOD & KINDRED PRODUCTS (1.39%)
H.J. Heinz Company ............................. 145,000 8,138
HEALTH SERVICES (1.19%)
Covance Inc. (a) ............................... 160,000 3,600
Integrated Health Services, Inc. (b)............ 90,000 3,375
HOLDING & OTHER INVESTMENT OFFICES (2.95%)
Crescent Operating, Inc. (a) ................... 32,150 547
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
48 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
HOLDING & OTHER INVESTMENT OFFICES (CONTINUED)
Crescent Real Estate Equities
Company ..................................... 260,000 $ 8,743
Starwood Hotels & Resorts ...................... 165,000 7,972
HOTELS & OTHER LODGING PLACES (1.71%)
Hilton Hotels Corporation ...................... 165,000 4,703
La Quinta Inns, Inc. ........................... 250,000 5,281
INDUSTRIAL MACHINERY & EQUIPMENT (1.95%)
Baker Hughes Incorporated (b) .................. 160,000 5,530
US Filter Corporation (a) (b) .................. 210,200 5,899
INSURANCE (2.58%)
American International Group, Inc. ............. 54,500 7,957
PartnerRe Ltd. ................................. 140,000 7,140
INSURANCE AGENTS, BROKERS & SERVICE (1.01%)
E. W. Blanch Holdings, Inc. .................... 72,300 2,657
Marsh & McLennan
Companies, Inc. ............................. 54,000 3,264
LIFE INSURANCE (1.30%)
American General Corporation ................... 106,900 7,610
LUMBER & WOOD PRODUCTS (0.31%)
MacMillan Bloedel Limited ...................... 170,000 1,806
MANUFACTURING INDUSTRIES (1.83%)
Tyco International Ltd. ........................ 170,000 10,709
MOTION PICTURES (0.81%)
Walt Disney Company ............................ 45,400 4,770
OIL & GAS EXTRACTION (0.39%
Schlumberger Limited (b) ....................... 33,000 2,254
PAPER & ALLIED PRODUCTS (1.83%)
Kimberly-Clark Corporation ..................... 124,000 5,689
St. Joe Company ................................ 183,700 5,029
PETROLEUM REFINING (3.53%)
Amoco Corporation .............................. 101,400 4,221
Exxon Corporation .............................. 114,800 8,187
Mobil Corporation .............................. 107,800 8,260
PHARMACEUTICALS (5.63%)
American Home Products
Corporation ................................. 45,000 2,329
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
PHARMACEUTICALS (CONTINUED)
Merck & Co., Inc. .............................. 70,500 $ 9,429
R. P. Scherer Corporation (a) .................. 22,500 1,994
Schering-Plough Corporation .................... 104,000 9,529
SmithKline Beecham Plc -
Sponsored ADR ............................... 160,000 9,680
PRINTING & PUBLISHING (1.25%)
A.H. Belo Corporation - Class A ................ 300,800 7,332
RADIO, TELEVISION, & COMPUTER STORES (0.99%)
Tandy Corporation .............................. 108,800 5,773
SAVINGS INSTITUTIONS (1.61%)
First Colorado Bancorp, Inc. (b) ............... 339,500 9,421
STONE, CLAY & GLASS PRODUCTS (1.01%)
Corning Inc. (b) ............................... 170,500 5,925
TELECOMMUNICATIONS (3.13%)
Alltel Corporation (b) ......................... 196,900 9,156
WorldCom, Inc. (a) (b) ......................... 189,350 9,172
TOBACCO PRODUCTS (1.35%)
Philip Morris Companies Inc. ................... 200,000 7,875
WHOLESALE TRADE DURABLE GOODS (1.24%)
Sybron International
Corporation (a) ............................. 288,000 7,272
---------
Total Common Stocks
(cost: $ 252,307)............................................. 365,259
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM OBLIGATION (0.24%)
Investors Bank & Trust Company (c)
5.20%, Repurchase
Agreement dated 06/30/98
to be repurchased at
$ 1,418 on 07/01/98.......................... $ 1,417 $ 1,417
---------
Total Short-Term Obligation
(cost: $ 1,417)................................................
1,417
---------
Total Investment Securities
(cost: $ 462,015).............................................. $ 581,884
=========
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 49
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
SUMMARY
Investments, at market value ..................... 99.39% $ 581,884
Other assets in
excess of liabilities ......................... 0.61% 3,548
----- ---------
Net assets ....................................... 100.00% $ 585,432
====== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 75,479. See footnote 1F to the
financial statements.
(c) Collateralized by $ 1,791 Freddie Mac Adjustable Rate Mortgage 8.12% due
12/01/24; market value and accrued interest aggregated $ 1,488 for the
collateral at June 30, 1998.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
50 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (94.11%)
AEROSPACE (0.68%)
Gulfstream Aerospace
Corporation (a) ................................. 59,500 $ 2,767
Sundstrand Corporation ............................. 39,000 2,233
AIR TRANSPORTATION (2.42%)
Alaska Air Group, Inc. (a) ......................... 65,000 3,547
America West Holdings
Corporation - Class B (a) ....................... 65,000 1,857
ASA Holdings, Inc. ................................. 30,000 1,489
Comair Holdings, Inc. .............................. 37,000 1,142
Continental Airlines, Inc. -
Class A (a) ..................................... 20,000 1,220
Continental Airlines, Inc. -
Class B (a) (b) ................................. 55,000 3,348
US Airways Group, Inc. (a) ......................... 66,500 5,269
AMUSEMENT & RECREATION SERVICES (0.28%)
Bally Total Fitness Holding
Corporation (a) ................................. 20,000 720
SFX Entertainment, Inc. -
Class A (a) ..................................... 28,900 1,326
APPAREL PRODUCTS (1.12%)
Jones Apparel Group, Inc. (a) ...................... 98,400 3,598
Tommy Hilfiger Corporation (a) ..................... 30,000 1,875
Warnaco Group, Inc. - Class A ...................... 15,000 637
WestPoint Stevens, Inc. (a) ........................ 66,000 2,178
APPAREL & ACCESSORY STORES (2.49%)
Goody's Family Clothing, Inc. (a) .................. 29,000 1,591
Kohl's Corporation (a) ............................. 105,000 5,446
Pacific Sunwear of California (a) .................. 76,500 2,678
Ross Stores, Inc. .................................. 51,200 2,202
Stage Stores, Inc. (a) (b) ......................... 48,000 2,172
The Gap, Inc. ..................................... 70,000 4,314
BEVERAGES (0.16%)
Canandaigua Brands, Inc. -
Class A (a) ..................................... 24,500 1,205
BUSINESS CREDIT INSTITUTIONS (1.22%)
FINOVA Group, Inc. ................................. 100,000 5,662
HealthCare Financial
Partners, Inc. (a) .............................. 45,000 2,759
Heller Financial, Inc. (a) ......................... 18,100 543
BUSINESS SERVICES (2.66%)
Concord EFS, Inc. (a) (b) .......................... 37,500 980
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
BUSINESS SERVICES (CONTINUED)
Engineering Animation, Inc. (a) .................... 20,000 $ 1,220
Interpublic Group of
Companies, Inc. ................................. 65,000 3,945
Omnicom Group, Inc. ................................ 99,000 4,938
Outdoor Systems, Inc. (a) .......................... 112,500 3,150
Robert Half
International, Inc. (a) (b) ..................... 64,500 3,604
Snyder Communications, Inc. (a) .................... 40,000 1,760
CHEMICALS & ALLIED PRODUCTS (0.10%)
Solutia Inc. ....................................... 25,000 717
COMMERCIAL BANKS (2.75%)
AmSouth Bancorporation ............................. 37,500 1,474
Fifth Third Bancorp ................................ 22,500 1,418
Fleet Financial Group, Inc. ........................ 37,500 3,131
National Commerce
Bancorporation .................................. 16,000 670
North Fork
Bancorporation, Inc. (b) ........................ 72,000 1,760
Northern Trust Corporation ......................... 48,000 3,660
Silicon Valley Bancshares (a) ...................... 20,000 712
SouthTrust Corporation ............................. 30,000 1,305
Star Banc Corporation (b) .......................... 35,000 2,236
State Street Corporation (b) ....................... 34,000 2,363
Zions Bancorporation ............................... 30,000 1,594
COMMUNICATION (0.55%)
Cablevision Systems Corporation -
Class A (a) (b) ................................. 49,000 4,092
COMMUNICATIONS EQUIPMENT (3.36%)
Advanced Fibre
Communications, Inc. (a) ........................ 80,000 3,205
General Instrument
Corporation (a) ................................. 45,000 1,223
Lucent Technologies, Inc. .......................... 145,000 12,061
Tekelec (a) ........................................ 45,000 2,014
Tellabs, Inc. (a) (b) .............................. 58,000 4,154
Xylan Corporation (a) (b) .......................... 70,000 2,087
COMPUTER & DATA PROCESSING SERVICES (21.12%)
Affiliated Computer Services, Inc. -
Class A (a) ..................................... 40,000 1,540
America Online, Inc. (a) (b) ....................... 180,000 19,080
Aspect Development, Inc. (a) ....................... 20,000 1,513
Aspen Technology, Inc. (a) ......................... 25,000 1,263
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 51
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
BMC Software, Inc. (a) .............................. 270,000 $ 14,023
Cambridge Technology
Partners, Inc. (a) (b) ........................... 100,000 5,463
CBT Group PLC - Sponsored
ADR (a) (b) ...................................... 155,000 8,293
Ciber, Inc. (a) ..................................... 108,000 4,104
Citrix Systems, Inc. (a) (b) ........................ 67,500 4,615
Comdisco, Inc. ...................................... 57,600 1,094
Compuware Corporation (a) ........................... 325,000 16,616
Documentum, Inc. (a) ................................ 14,100 677
Envoy Corporation (a) (b) ........................... 55,000 2,606
HBO & Company ....................................... 740,000 26,084
IDT Corporation (a) ................................. 24,500 737
Information Management
Resources, Inc. (a) .............................. 82,500 2,790
JDA Software Group, Inc. (a) ........................ 15,000 656
Keane, Inc. (a) ..................................... 96,000 5,376
Legato Systems, Inc. (a) ............................ 126,000 4,914
Mastech Corporation (a) ............................. 50,000 1,406
Mercury Interactive
Corporation (a) .................................. 25,000 1,116
PeopleSoft, Inc. (a) (b) ............................ 82,500 3,878
Saville Systems Ireland plc -
Sponsored ADR (a) ................................ 66,700 3,343
Siebel Systems, Inc. (a) ............................ 81,000 2,612
Sterling Software, Inc. (a) ......................... 76,000 2,247
SunGard Data Systems Inc. (a) ....................... 110,000 4,221
Synopsys, Inc. (a) .................................. 40,000 1,830
VERITAS Software
Corporation (a) (b) .............................. 91,500 3,786
Visio Corporation (a) ............................... 65,000 3,104
Yahoo! Inc. (a) (b) ................................. 43,000 6,772
COMPUTER & OFFICE EQUIPMENT (6.70%)
Cisco Systems, Inc. (a) ............................. 50,000 4,603
Dell Computer Corporation (a) ....................... 327,000 30,350
EMC Corporation (a) (b) ............................. 220,000 9,859
Lexmark International
Group, Inc. - Class A (a) ........................ 47,700 2,910
Storage Technology
Corporation (a) .................................. 40,000 1,735
DEPARTMENT STORES (3.44%)
Dayton Hudson Corporation ........................... 149,000 7,227
Fred Meyer, Inc. (a) ................................ 120,000 5,100
Kmart Corporation (a) ............................... 95,000 1,829
Proffitt's, Inc. (a) ................................ 115,000 4,643
TJX Companies, Inc. ................................. 272,000 6,561
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
DRUG STORES & PROPRIETARY STORES (0.44%)
CVS Corporation ..................................... 84,000 $ 3,271
EDUCATIONAL SERVICES (0.30%)
Apollo Group, Inc. - Class A (a) .................... 67,500 2,232
ELECTRIC SERVICES (0.57%)
AES Corporation (a) (b) ............................. 80,000 4,205
ELECTRONIC COMPONENTS & ACCESSORIES (0.98%)
Lernout & Hauspie Speech
Products N.V. (a) (b) ............................ 70,000 4,178
Vitesse Semiconductor
Corporation (a) .................................. 100,000 3,088
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.65%)
Gemstar International Group
Limited (a) ...................................... 20,000 749
Kuhlman Corporation ................................. 20,500 811
Maytag Corporation (b) .............................. 65,000 3,209
ENGINEERING & MANAGEMENT SERVICES (0.13%)
Stolt Comex Seaway,
S.A. - ADR (a) ................................... 17,000 298
Stolt Comex Seaway, S.A. (a) ........................ 34,000 659
ENVIRONMENTAL SERVICES (1.20%)
Allied Waste Industries, Inc. (a) ................... 141,500 3,396
American Disposal
Services, Inc. (a) ............................... 35,000 1,641
Newpark Resources, Inc. (a) ......................... 86,000 957
U.S.A. Waste Services, Inc. (a) (b).................. 57,500 2,839
FABRICATED METAL PRODUCTS (0.40%)
Danaher Corporation (b) ............................. 80,000 2,935
FINANCE (0.32%)
Freddie Mac ......................................... 50,000 2,353
FOOD STORES (1.07%)
General Nutrition
Companies, Inc. (a) .............................. 80,000 2,490
Whole Foods Market, Inc. (a) ........................ 89,500 5,415
FURNITURE & FIXTURES (0.33%)
Herman Miller, Inc. ................................. 100,000 2,431
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
52 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
FURNITURE & HOME FURNISHINGS STORES (0.92%)
Linens 'N Things, Inc. (a) .......................... 140,000 $ 4,279
Williams-Sonoma, Inc. (a) ........................... 80,000 2,545
GAS PRODUCTION & DISTRIBUTION (0.34%)
Cooper Cameron Corporation (a) ...................... 49,000 2,499
HEALTH SERVICES (1.42%)
Health Management Associates,
Inc. - Class A (a) ............................... 143,937 4,813
Total Renal Care
Holdings, Inc. (a) (b) ........................... 105,891 3,653
Universal Health Services, Inc. -
Class B (a) ...................................... 34,000 1,985
INDUSTRIAL MACHINERY & EQUIPMENT (0.54%)
Varco International, Inc. (a) ....................... 200,000 3,963
INSTRUMENTS & RELATED PRODUCTS (0.38%)
Uniphase Corporation (a) ............................ 45,000 2,825
INSURANCE (0.74%)
CMAC Investment Corporation ......................... 30,500 1,876
Everest Reinsurance Holdings, Inc.................... 25,000 961
Mercury General Corporation ......................... 32,000 2,062
Transatlantic Holdings, Inc. ........................ 7,500 580
INSURANCE AGENTS, BROKERS & SERVICE (0.49%)
Marsh & McLennan
Companies, Inc. .................................. 60,000 3,626
LEATHER & LEATHER PRODUCTS (0.21%)
Wolverine World Wide, Inc. .......................... 71,250 1,545
LIFE INSURANCE (1.85%)
Annuity and Life Re
Holdings, Ltd. (a) ............................... 9,300 206
Equitable Companies Incorporated .................... 20,000 1,499
Protective Life Corporation ......................... 40,000 1,468
Providian Financial Corporation (c).................. 100,000 7,855
SunAmerica, Inc. .................................... 45,000 2,585
LUMBER & OTHER BUILDING MATERIALS (1.86%)
Home Depot, Inc. .................................... 60,000 4,984
Lowe's Companies, Inc. .............................. 215,400 8,736
MANAGEMENT SERVICES (0.35%)
Paychex, Inc. ....................................... 63,000 2,563
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- -------
MANUFACTURING INDUSTRIES (1.11%)
Tyco International Ltd. ............................. 130,000 $ 8,189
MEDICAL INSTRUMENTS & SUPPLIES (1.51%)
Arterial Vascular
Engineering, Inc. (a) (b) ........................ 35,000 1,251
Boston Scientific Corporation (a) ................... 25,000 1,791
ESC Medical Systems
Limited (a) (b) .................................. 55,000 1,856
Guidant Corporation ................................. 25,000 1,783
MiniMed, Inc. (a) ................................... 30,000 1,571
STERIS Corporation (a) .............................. 45,000 2,862
MOTION PICTURES (0.69%)
Liberty Media Group - Class A (a).................... 130,250 5,054
MOTOR VEHICLES, PARTS & SUPPLIES (0.27%)
Federal-Mogul Corporation ........................... 30,000 2,025
OIL & GAS EXTRACTION (1.22%)
BJ Services Company - warrants ...................... 14,000 439
Coflexip SA - Sponsored ADR ......................... 35,000 2,139
Global Industries Ltd. (a) .......................... 50,000 844
Marine Drilling
Companies, Inc. (a) .............................. 120,000 1,920
Rowan Companies, Inc. (a) ........................... 60,000 1,166
Veritas DGC Inc. (a) ................................ 50,000 2,497
PAPER & ALLIED PRODUCTS (0.09%)
Mail-Well, Inc. (a) ................................. 30,000 651
PERSONAL CREDIT INSTITUTIONS (1.77%)
AmeriCredit Corporation (a) ......................... 20,000 714
Associates First Capital Corporation -
Class A .......................................... 25,000 1,922
Capital One Financial Corporation.................... 84,500 10,494
PETROLEUM & PETROLEUM PRODUCTS (0.19%)
National-Oilwell, Inc. (a) .......................... 51,000 1,367
PHARMACEUTICALS (3.45%)
Allegiance Corporation .............................. 40,000 2,050
McKesson Corporation (b) ............................ 50,000 4,063
Medicis Pharmaceutical Corporation -
Class A (a) (b) .................................. 32,500 1,186
Mylan Laboratories Inc. (b) ......................... 100,000 3,006
NBTY, Inc. (a) ...................................... 170,000 3,124
Rexall Sundown, Inc. (a) (b) ........................ 99,000 3,490
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 53
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Twinlab Corporation (a) .............................. 41,300 $ 1,804
Warner-Lambert Company ............................... 60,000 4,163
Watson Pharmaceuticals, Inc. (a) ..................... 55,000 2,568
PRIMARY METAL INDUSTRIES (0.20%)
Mueller Industries, Inc. (a) ......................... 40,000 1,485
PRINTING & PUBLISHING (1.87%)
Consolidated Graphics, Inc. (a) ...................... 40,000 2,360
Meredith Corporation ................................. 95,000 4,459
The New York Times
Company - Class A ................................. 45,000 3,566
Viacom Inc. - Class B (a) (b) ........................ 58,500 3,408
RADIO & TELEVISION BROADCASTING (4.32%)
Capstar Broadcasting
Corporation - Class A (a) ......................... 85,000 2,136
Chancellor Media
Corporation (a) (b) ............................... 305,000 15,145
Clear Channel
Communications, Inc. (a) .......................... 89,500 9,767
Jacor Communications, Inc. (a) (b).................... 65,000 3,835
Univision Communications,
Inc. - Class A (a) ................................ 26,400 983
RADIO, TELEVISION, & COMPUTER STORES (1.14%)
Best Buy Co., Inc. (a) ............................... 233,000 8,417
RESEARCH & TESTING SERVICES (0.60%)
Quintiles Transnational
Corporation (a) ................................... 90,000 4,427
RETAIL TRADE (3.80%)
Abercrombie & Fitch Company (a)....................... 83,000 3,652
Barnes & Noble, Inc. (a) ............................. 60,000 2,246
Bed Bath & Beyond, Inc. (a) (b) ...................... 42,500 2,202
Borders Group, Inc. (a) .............................. 80,000 2,960
Costco Companies, Inc. (a) ........................... 149,000 9,396
Dollar Tree Stores, Inc. (a) ......................... 61,500 2,498
Staples, Inc. (a) (b) ................................ 175,000 5,063
RUBBER & MISC. PLASTIC PRODUCTS (0.98%)
Safeskin Corporation (a) (b) ......................... 175,000 7,196
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
SAVINGS INSTITUTIONS (0.34%)
Bank United Corp. - Class A .......................... 15,000 $ 718
Dime Bancorp, Inc. ................................... 60,000 1,796
SECURITY & COMMODITY BROKERS (0.56%)
Lehman Brothers Holdings, Inc. ....................... 53,400 4,142
SHOE STORES (0.39%)
Just For Feet, Inc. (a) .............................. 52,400 1,493
The Finish Line, Inc. - Class A (a)................... 50,000 1,406
STONE, CLAY & GLASS PRODUCTS (0.44%)
Gentex Corporation (a) ............................... 80,000 1,450
Southdown, Inc. ...................................... 25,000 1,784
TELECOMMUNICATIONS (1.15%)
AirTouch
Communications, Inc. (a) .......................... 132,000 7,714
STAR
Telecommunications, Inc. (a) ...................... 35,000 783
TEXTILE MILL PRODUCTS (0.27%)
Interface, Inc. ...................................... 99,000 1,999
VARIETY STORES (0.73%)
Dollar General Corporation ........................... 31,250 1,236
Family Dollar Stores, Inc. .......................... 226,000 4,181
WATER TRANSPORTATION (0.86%)
Carnival Corporation ................................. 60,000 2,378
Royal Caribbean Cruises Ltd. (b) ..................... 50,000 3,975
WHOLESALE TRADE DURABLE GOODS (0.88%)
Omnicare, Inc. (b) ................................... 130,000 4,956
Sybron International
Corporation (a) ................................... 60,000 1,515
WHOLESALE TRADE NONDURABLE GOODS (0.74%)
Safeway, Inc. (a) (b) ................................ 135,000 5,493
-------
Total Common Stocks
(cost: $ 455,675).............................................. 694,301
-------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
54 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
SHORT-TERM U.S. GOVERNMENT
OBLIGATION (5.35%)
Federal Home Loan Bank
Discount Note
5.50%, due 07/01/98 ....................... $ 39,476 $ 39,476
---------
Total Short-Term
U.S. Government Obligation
(cost: $ 39,476)........................................... 39,476
---------
Total Investment Securities
(cost: $ 495,151).......................................... $ 733,777
=========
SUMMARY
Investments, at market value ................... 99.46% $ 733,777
Other assets in
excess of liabilities ....................... 0.54% 3,943
------- ---------
Net assets ..................................... 100.00% $ 737,720
======= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $143,237. See footnote 1F to the
financial statements.
(c) Affiliated company. See footnote 2C to the financial statements.
The Preferred Stocks - Telecommunications category has been omitted.
The percentage is less than .01%. The two securities in this category;
AirTouch Communications, Inc. - Series B & C, each had a cost and a
market value less than $ 1.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 55
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
---------- --------
COMMON STOCKS (95.60%)
AIR TRANSPORTATION (3.63%)
AMR Corporation (a) ................................. 90,600 $ 7,542
SkyWest, Inc. ....................................... 163,000 4,564
US Airways Group Inc. (a) ........................... 55,200 4,375
AMUSEMENT & RECREATION SERVICES (1.03%)
Premier Parks Inc. (a) (b) .......................... 70,000 4,664
APPAREL PRODUCTS (0.72%)
Tommy Hilfiger Corporation (a) ...................... 52,500 3,281
BUSINESS SERVICES (1.38%)
Outdoor Systems, Inc. (a) ........................... 222,750 6,237
COMMERCIAL BANKS (7.99%)
Banc One Corporation ................................ 33,330 1,860
Bank of New York Company, Inc. ...................... 167,600 10,171
BankAmerica Corporation ............................. 44,600 3,855
Chase Manhattan Corporation ......................... 58,600 4,424
Fifth Third Bancorp ................................. 17,650 1,112
First Union Corporation ............................. 80,240 4,674
NationsBank Corporation ............................. 54,500 4,169
Star Banc Corporation (b) ........................... 30,000 1,916
U.S. Bancorp ........................................ 94,500 4,064
COMMUNICATIONS EQUIPMENT (8.02%)
Ascend Communications,
Inc. (a) (b) ..................................... 254,600 12,619
Nokia Oyj - Sponsored ADR ........................... 176,000 12,771
RELTEC Corporation (a) (b) .......................... 62,000 2,790
Tellabs, Inc. (a) (b) ............................... 113,700 8,144
COMPUTER & DATA PROCESSING SERVICES (13.75%)
America Online, Inc. (a) (b) ........................ 140,000 14,839
Citrix Systems, Inc. (a) (b) ........................ 68,200 4,663
Cognizant Corporation ............................... 77,500 4,883
Compuware Corporation (a) ........................... 88,800 4,540
HBO & Company ....................................... 240,800 8,488
Microsoft Corporation (a) ........................... 142,500 15,442
Network Associates, Inc. (a) (b) .................... 43,500 2,083
Software AG Systems, Inc. (a) ....................... 82,500 2,413
Yahoo! Inc. (a) (b) ................................. 31,600 4,977
COMPUTER & OFFICE EQUIPMENT (4.18%)
Cisco Systems, Inc. (a) ............................. 154,700 14,241
Compaq Computer Corporation ......................... 72,000 2,043
Lexmark International Group, Inc. -
Class A (a) ...................................... 44,000 2,684
DEPARTMENT STORES (4.21%)
Fred Meyer, Inc. (a) ................................ 93,500 3,974
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) ---------- --------
DEPARTMENT STORES (CONTINUED)
Kmart Corporation (a) ............................... 137,000 $ 2,637
Wal-Mart Stores, Inc. (b) ........................... 205,300 12,472
DRUG STORES & PROPRIETARY STORES (0.98%)
CVS Corporation ..................................... 114,200 4,447
ELECTRIC SERVICES (0.88%)
AES Corporation (a) (b) ............................. 76,000 3,995
ELECTRICAL GOODS (1.89%)
CBS Corporation ..................................... 270,000 8,573
ELECTRONIC COMPONENTS & ACCESSORIES (1.21%)
Amkor Technology, Inc. (a) (b) ...................... 353,000 3,298
Broadcom Corporation -
Class A (a) (b) .................................. 30,000 2,209
ENVIRONMENTAL SERVICES (1.96%)
USA Waste Services, Inc. (a) (b) .................... 180,000 8,888
FOOD STORES (0.79%)
Food Lion, Inc. - Class A ........................... 150,800 1,602
Kroger Company (a) .................................. 46,600 1,998
FOOD & KINDRED PRODUCTS (0.83%)
Aurora Foods Inc. (a) ............................... 104,500 2,208
Keebler Foods Company (a) ........................... 56,500 1,554
INSTRUMENTS & RELATED PRODUCTS (0.41%)
Sunglass Hut International, Inc. (a)................. 169,100 1,871
INSURANCE (3.80%)
American International
Group, Inc. ...................................... 53,000 7,738
Enhance Financial Services
Group Inc. (b) ................................... 56,200 1,897
Travelers Group, Inc. (b) ........................... 125,600 7,615
LUMBER & OTHER BUILDING MATERIALS (2.97%)
Home Depot, Inc. .................................... 162,150 13,468
MANAGEMENT SERVICES (0.83%)
Paychex, Inc. ....................................... 92,350 3,757
MANUFACTURING INDUSTRIES (2.09%)
Tyco International Ltd. ............................. 150,674 9,492
MEDICAL INSTRUMENTS & SUPPLIES (0.80%)
Guidant Corporation ................................. 50,700 3,616
PERSONAL CREDIT INSTITUTIONS (0.46%)
Household International, Inc. ....................... 42,000 2,090
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
56 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (13.76%)
ALZA Corporation (a) ........................... 50,200 $ 2,171
Bergen Brunswig Corporation -
Class A ..................................... 40,000 1,855
Bristol-Myers Squibb Company ................... 74,000 8,505
Cardinal Health, Inc. (b) ...................... 53,600 5,025
Eli Lilly and Company .......................... 60,000 3,964
Forest Laboratories, Inc. (a) .................. 62,900 2,249
McKesson Corporation (b) ....................... 34,000 2,763
Pfizer, Inc. ................................... 97,900 10,641
Schering-Plough Corporation .................... 139,800 12,808
Warner-Lambert Company ......................... 178,500 12,383
RADIO & TELEVISION BROADCASTING (3.60%)
Capstar Broadcasting Corporation -
Class A (a) ................................. 197,100 4,952
Chancellor Media
Corporation (a) (b) ......................... 43,500 2,160
Clear Channel
Communications, Inc. (a) .................... 42,800 4,671
Jacor Communications, Inc. (a) (b).............. 77,200 4,555
RAILROADS (1.03%)
Kansas City Southern
Industries, Inc. ............................ 94,500 4,690
RESTAURANTS (1.02%)
Outback Steakhouse, Inc. (a) ................... 55,000 2,145
Showbiz Pizza Time, Inc. (a) ................... 61,000 2,459
RETAIL TRADE (2.38%)
Amazon.com, Inc. (a) (b) ....................... 27,300 2,723
N2K Inc. (a) ................................... 55,100 1,082
Staples, Inc. (a) (b) .......................... 241,500 6,988
SAVINGS INSTITUTIONS (0.79%)
Sovereign Bancorp, Inc. ........................ 219,600 3,589
SECURITY & COMMODITY BROKERS (2.60%)
Morgan Stanley, Dean Witter
and Co. ..................................... 103,500 9,457
Paine Webber Group Inc. ........................ 54,300 2,328
SHOE STORES (0.49%)
The Finish Line, Inc. - Class A (a)............. 79,500 2,236
TELECOMMUNICATIONS (2.18%)
Com21, Inc. (a) ................................ 132,500 2,816
WorldCom, Inc. (a) (b) ......................... 145,900 7,067
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (CONTINUED)
VARIETY STORES (0.49%)
Family Dollar Stores, Inc. .................... 120,600 $ 2,231
WATER TRANSPORTATION (1.50%)
Carnival Corporation ........................... 171,800 6,808
WHOLESALE TRADE NONDURABLE GOODS (0.95%)
Safeway Inc. (a) (b) ........................... 106,000 4,313
---------
Total Common Stocks
(cost: $ 302,951)........................................... 433,561
--------
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
SHORT-TERM OBLIGATION (4.70%)
Investors Bank & Trust Company (c)
5.20%, Repurchase
Agreement dated 6/30/98
to be repurchased at
$ 21,351 on 07/01/98............................ $ 21,348 $ 21,348
---------
Total Short-Term Obligation
(cost: $ 21,348)............................................ 21,348
---------
Total Investment Securities
(cost: $ 324,299).......................................... $ 454,909
========
SUMMARY
Investments, at market value ................... 100.30% $ 454,909
Other liabilities in
excess of assets ............................ (0.30%) (1,374)
---------- ---------
Net assets ..................................... 100.00% $ 453,535
========== =========
NOTES TO SCHEDULE OF INVESTMENTS
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 79,977. See footnote 1F to the
financial statements.
(c) Collateralized by $ 10,000 BankAmerica Capital 6.23% due 01/15/27; $ 1,865
Freddie Mac London Interbank Offered Rate Floater - Series 1642 - Class FA
6.84% due 11/15/23; $ 10,000 Freddie Mac - Series 1977 - Class D 7.00% due
06/15/11; market value and accrued interest aggregated $ 10,263, $ 1,938
and $ 10,216, respectively, for the collateral at June 30, 1998.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 57
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
U.S. GOVERNMENT OBLIGATIONS (29.16%)
U.S. Treasury Bonds
7.25%, due 05/15/16 ............................. $ 2,000 $ 2,341
U.S. Treasury Bonds
7.50%, due 11/15/16 ............................. 3,000 3,600
U.S. Treasury Bonds
7.13%, due 02/15/23 ............................. 3,000 3,546
U.S. Treasury Bonds (b)
6.13%, due 11/15/27 ............................. 3,000 3,215
U.S. Treasury Notes
7.13%, due 09/30/99 ............................. 1,000 1,019
U.S. Treasury Notes
6.38%, due 08/15/02 ............................. 2,500 2,575
U.S. Treasury Notes
7.25%, due 08/15/04 ............................. 2,000 2,174
U.S. Treasury Notes (b)
6.50%, due 05/15/05 ............................. 2,000 2,111
U.S. Treasury Notes
6.50%, due 10/15/06 ............................. 2,000 2,122
U.S. Treasury Notes (b)
6.13%, due 08/15/07 ............................. 3,000 3,120
------
Total U.S. Government Obligations
(cost: $ 24,361)............................................. 25,823
------
NUMBER OF MARKET
SHARES VALUE
--------- --------
CONVERTIBLE PREFERRED STOCKS (6.02%)
BUSINESS SERVICES (1.02%)
WBK STRYPES Trust .................................. 30,000 $ 906
HOLDING & OTHER INVESTMENT OFFICES (2.39%)
Conseco Finance Trust .............................. 20,000 1,060
Walden Residential
Properties, Inc. (a) ............................ 37,000 1,055
INSURANCE (0.58%)
Philidelphia Consolidated
Holding Corp. (a) ............................... 50,000 513
LIFE INSURANCE (0.92%)
SunAmerica, Inc. ................................... 17,000 816
SECURITY & COMMODITY BROKERS (1.11%)
Merrill Lynch STRYPES (a) .......................... 25,000 983
-----
Total Convertible Preferred Stocks
(cost: $ 5,060).............................................. 5,333
-----
NUMBER OF MARKET
SHARES VALUE
--------- --------
PREFERRED STOCK (0.81%)
HOLDING & OTHER INVESTMENT OFFICES (0.81%)
Prime Group Realty Trust ........................... 30,000 $ 714
-------
Total Preferred Stock
(cost: $ 750)............................................... 714
-------
COMMON STOCKS (57.94%)
AIR TRANSPORTATION (0.91%)
Linea Aerea Nacional Chile S.A. -
ADR (b) ......................................... 98,900 804
AUTOMOTIVE DEALERS & SERVICE STATIONS (1.31%)
Ugly Duckling Corporation (a) (b)................... 120,000 1,163
COMMERCIAL BANKS (4.77%)
Atlantic Bank &
Trust Company (a) ............................... 3,000 63
BankAmerica Corporation ............................ 16,000 1,383
Chase Manhattan Corporation ........................ 20,000 1,510
Norwest Corporation ................................ 34,000 1,271
COMPUTER & DATA PROCESSING SERVICES (2.72%)
Computer Associates
International, Inc. ............................. 23,000 1,278
Sun Microsystems, Inc. (a) (b) ..................... 26,000 1,129
COMPUTER & OFFICE EQUIPMENT (0.88%)
Hewlett-Packard Company ............................ 13,000 778
DEPARTMENT STORES (3.44%)
Federated Department
Stores, Inc. (a) ................................ 25,000 1,345
Wal-Mart Stores, Inc. .............................. 28,000 1,701
ELECTRIC SERVICES (1.44%)
Endesa S.A. - Sponsored ADR (b) .................... 59,000 1,276
ELECTRICAL GOODS (1.13%)
Motorola, Inc. ..................................... 19,000 999
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.34%)
General Electric Company ........................... 13,000 1,183
FINANCE (3.14%)
Fannie Mae ......................................... 20,000 1,214
SLM Holding Corporation ............................ 31,999 1,567
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report
58 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
GAS PRODUCTION & DISTRIBUTION (0.74%)
Sonat, Inc. ....................................... 17,000 $ 657
HEALTH SERVICES (0.47%)
BioSource International, Inc. (a) ................. 75,000 417
HOLDING & OTHER INVESTMENT OFFICES (9.63%)
Boston Properties, Inc. .......................... 25,000 863
Capital Automotive REIT ........................... 50,000 709
Chastain Capital Corporation (a) .................. 50,000 644
LTC Properties, Inc. .............................. 46,000 857
Shurgard Storage Centers, Inc. -
Class A ........................................ 19,000 527
United Investors Realty Trust (a) ................. 100,000 950
Westfield America, Inc. ........................... 50,000 919
Wilshire Real Estate Investment
Trust Inc. ..................................... 180,000 3,049
INSTRUMENTS & RELATED PRODUCTS (1.23%)
Mettler-Toledo
International Inc. (a) ......................... 25,000 502
Raytheon Company - Class B (b) .................... 10,000 591
INSURANCE (3.89%)
Allstate Corporation .............................. 14,000 1,282
Travelers Group, Inc. (b) ......................... 20,000 1,213
United HealthCare Corporation (b).................. 15,000 953
MINING (0.94%)
Potash Corporation of
Saskatchewan, Inc. (b) ......................... 11,000 831
MORTGAGE BANKERS AND BROKERS (5.32%)
Anthracite Capital, Inc. (a) ...................... 115,000 1,596
Imperial Credit Commercial
Mortgage Investment Corp. ...................... 154,000 2,012
Long Beach Financial
Corporation (a) ................................ 100,000 1,100
PERSONAL CREDIT INSTITUTIONS (0.23%)
Mego Mortgage Corporation (a) ..................... 110,000 206
PHARMACEUTICALS (1.85%)
Abbott Laboratories ............................... 40,000 1,635
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) --------- ---------
RAILROADS (1.77%)
Burlington Northern Santa Fe ...................... 16,000 $ 1,571
SAVINGS INSTITUTIONS (2.10%)
ITLA Capital Corporation (a) ...................... 33,000 685
Washington Mutual, Inc. ........................... 27,000 1,173
SECURITY & COMMODITY BROKERS (0.57%)
Alliance Capital Management, L.P................... 20,000 506
STONE, CLAY & GLASS PRODUCTS (1.64%)
Gentex Corporation (a) ............................ 80,000 1,450
TELECOMMUNICATIONS (3.79%)
Frontier Corporation .............................. 59,000 1,858
GTE Corporation ................................... 27,000 1,501
TOBACCO PRODUCTS (1.55%)
Philip Morris Companies, Inc. ..................... 35,000 1,377
TRUCKING & WAREHOUSING (1.14%)
Heartland Express, Inc. (a) ....................... 50,000 1,012
--------
Total Common Stocks
(cost: $ 43,853)........................................... 51,310
--------
Total Investment Securities
(cost: $ 74,024)........................................... $ 83,180
========
SUMMARY
Investments, at market value ...................... 93.93% $ 83,180
Other assets in
excess of liabilities .......................... 6.07% 5,374
------- --------
Net assets ........................................ 100.00% $ 88,554
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 12,686. See footnote 1F 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.
1 9 9 8 S e m i - A n n u a l R e p o r t 59
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
---------- --------
U.S. GOVERNMENT OBLIGATION (15.85%)
U.S. Treasury Notes (b)
6.38%, due 04/30/99 ........................... $ 12,750 $ 12,838
--------
Total U.S. Government Obligation
(cost: $ 12,813)............................................. 12,838
--------
CONVERTIBLE BOND (1.31%)
TELECOMMUNICATIONS (1.31%)
Bell Atlantic Financial Services (c)
5.75%, due 04/01/03 ........................... 1,035 1,058
--------
Total Convertible Bond
(cost: $ 1,049)............................................. 1,058
--------
NUMBER OF MARKET
SHARES VALUE
-------- --------
CONVERTIBLE PREFERRED STOCKS (2.80%)
FOOD & KINDRED PRODUCTS (1.50%)
Ralston-Ralston Purina Company ................... 19,100 $ 1,213
GAS PRODUCTION & DISTRIBUTION (1.30%)
MCN Energy Group Inc. ............................ 23,000 1,055
--------
Total Convertible Preferred Stocks
(cost: $ 2,476).............................................. 2,268
--------
PREFERRED STOCK (0.86%)
BUSINESS CREDIT INSTITUTIONS (0.86%)
DECS Trust ....................................... 51,000 701
--------
Total Preferred Stock
(cost: $ 921)............................................... 701
--------
COMMON STOCKS (74.88%)
AUTOMOTIVE (1.00%)
Federal Signal Corporation ....................... 33,400 812
BUSINESS SERVICES (0.85%)
Kelly Services, Inc. - Class A ................... 19,500 690
ELECTRIC SERVICES (19.02%)
BEC Energy ....................................... 23,100 959
Dominion Resources, Inc. ......................... 28,200 1,149
DQE, Inc. ........................................ 40,000 1,440
Florida Progress Corporation ..................... 18,000 740
LG&E Energy Corporation .......................... 37,100 1,004
Montana Power Company ............................ 40,500 1,407
New England Electric System ...................... 37,900 1,639
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS (CONTINUED) -------- --------
ELECTRIC SERVICES (CONTINUED)
NIPSCO Industries, Inc. .......................... 42,100 1,179
Potomac Electric Power Company ................... 45,700 1,145
Public Service Enterprise Group
Incorporated (b) .............................. 24,000 827
Puget Sound Energy, Inc. ......................... 51,100 1,370
Sierra Pacific Resources ......................... 36,200 1,315
Teco Energy, Inc. ................................ 46,000 1,233
ELECTRIC, GAS & SANITARY SERVICES (2.38%)
MarketSpan Corporation (a) ....................... 41,300 1,236
PG&E Corporation (b) ............................. 22,000 694
FOOD STORES (1.79%)
Food Lion, Inc. - Class A ........................ 136,700 1,452
FOOD & KINDRED PRODUCTS (1.83%)
McCormick & Company, Inc. ........................ 41,500 1,482
GAS PRODUCTION & DISTRIBUTION (17.82%)
AGL Resources Inc. ............................... 56,200 1,117
Atmos Energy Corporation ......................... 51,600 1,574
Consolidated Natural Gas
Company ....................................... 27,100 1,596
El Paso Natural Gas Company (b) .................. 48,200 1,844
Laclede Gas Company .............................. 53,900 1,321
National Fuel Gas Company ........................ 14,800 645
NGC Corporation (c) .............................. 42,500 531
Northwest Natural Gas Company .................... 49,500 1,384
Piedmont Natural Gas
Company, Inc. ................................. 22,900 770
Sonat, Inc. ...................................... 21,500 830
UGI Corporation .................................. 47,400 1,179
UtiliCorp United, Inc. ........................... 31,500 1,187
Western Gas Resources, Inc. ...................... 31,500 461
HOLDING & OTHER INVESTMENT OFFICES (21.18%)
ABB AB - Sponsored ADR ........................... 6,000 829
Amli Residential Properties Trust ................ 45,700 980
Apartment Investment &
Management Company - Class A................... 25,800 1,019
Avalon Bay Communities, Inc. ..................... 33,267 1,264
Brandywine Realty Trust .......................... 50,000 1,119
BRE Properties, Inc. - Class A ................... 22,300 581
Camden Property Trust ............................ 38,000 1,131
Colonial Properties Trust ........................ 24,500 760
Equity Office Properties Trust ................... 39,500 1,121
Equity Residential Properties Trust .............. 20,500 972
JDN Realty Corporation ........................... 24,000 765
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
60 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED
HOLDING & OTHER INVESTMENT OFFICES (CONTINUED)
Liberty Property Trust ............................. 56,400 $ 1,442
Meditrust Corporation (b) .......................... 33,644 940
Merry Land & Investment
Company, Inc. ................................... 43,100 908
New Plan Realty Trust (b) .......................... 37,100 909
Post Properties, Inc. (b) .......................... 33,700 1,297
Security Capital Industrial Trust .................. 13,290 332
Security Capital Pacific Trust (b) ................. 34,857 784
INDUSTRIAL MACHINERY & EQUIPMENT (1.32%)
Tecumseh Products Company -
Class A ......................................... 20,200 1,067
METAL CANS & SHIPPING CONTAINERS (1.20%)
Crown Cork & Seal Company, Inc. .................... 20,500 974
METAL MINING (1.50%
Barrick Gold Corporation ........................... 63,300 1,215
MINING (0.44%)
Vulcan Materials Company ........................... 3,300 352
OIL & GAS EXTRACTION (0.82%)
Burlington Resources Inc. .......................... 15,500 667
PETROLEUM REFINING (1.48%)
Ultramar Diamond Shamrock
Corporation ..................................... 38,000 1,199
TELECOMMUNICATIONS (1.41%)
AT&T Corporation ................................... 20,000 1,143
TOBACCO PRODUCTS (0.84%)
UST, Inc. .......................................... 25,100 678
--------
Total Common Stocks
(cost: $ 57,802).............................................. 60,660
--------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM OBLIGATION (3.75%)
Greenwich Capital Markets, Inc. (d)
5.25%, Repurchase Agreement
dated 6/30/98 to be repurchased
at $ 3,037 on 07/01/98........................... $ 3,037 $ 3,037
--------
Total Short-Term Obligation
(cost: $ 3,037)................................................ 3,037
--------
Total Investment Securities
(cost: $ 78,098)............................................... $ 80,562
========
SUMMARY
Investments, at market value ....................... 99.45% $ 80,562
Other assets in
excess of liabilities ........................... 0.55% 446
----- --------
Net assets ......................................... 100.00% $ 81,008
====== ========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 13,567. See footnote 1F to the
financial statements.
(c) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale
(d) Collateralized by $ 1,936 U.S. Treasury Bonds 12.5% due 08/15/14; market
value and accrued interest aggregated $ 3,105 for this collateral at June
30, 1998.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 61
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
U.S. GOVERNMENT OBLIGATIONS (7.34%)
U.S. Treasury Notes
5.88%, due 08/15/98 ....................... $ 2,000 $ 2,001
U.S. Treasury Notes
7.13%, due 10/15/98 ....................... 3,000 3,017
U.S. Treasury Notes
5.88%, due 02/15/04 ....................... 10,000 10,187
U.S. Treasury Notes (b)
6.50%, due 05/15/05 ....................... 10,000 10,553
------
Total U.S. Government Obligations
(cost: $ 25,546)......................................... 25,758
------
U.S. GOVERNMENT AGENCY OBLIGATIONS (4.27%)
Federal Farm Credit Bank
6.00%, due 06/24/99 ....................... 5,000 4,996
Federal Home Loan Bank
5.70%, due 01/29/01 ....................... 5,000 4,985
Federal Home Loan Bank
6.50%, due 01/07/08 ....................... 5,000 5,002
------
Total U.S. Government Agency
Obligations
(cost: $ 15,006)......................................... 14,983
------
CORPORATE DEBT SECURITIES (22.10%)
APPAREL & ACCESSORY STORES (1.47%)
Nordstrom Credit, Inc.
6.70%, due 07/01/05 ....................... 5,000 5,156
AUTOMOTIVE (1.47%)
Chrysler Financial Corporation
6.95%, due 03/25/02 ....................... 5,000 5,156
CHEMICALS & ALLIED PRODUCTS (2.26%)
E. I. du Pont de Nemours
and Company
6.50%, due 09/01/02 ....................... 7,750 7,944
ELECTRIC SERVICES (2.33%)
Texas Utilities Company
6.38%, due 10/01/04 ....................... 8,000 8,159
FINANCE (8.59%)
Fannie Mae (b)
5.63%, due 03/15/01 ....................... 8,000 7,996
Fannie Mae
5.25%, due 01/15/03 ....................... 8,000 7,864
Fannie Mae
7.50%, due 02/02/07 ....................... 9,000 9,221
Norwest Financial, Inc.
6.38%, due 11/15/03 ....................... 5,000 5,056
PRINCIPAL MARKET
AMOUNT VALUE
CORPORATE DEBT SECURITIES (CONTINUED) --------- -------
HOLDING & OTHER INVESTMENT OFFICES (1.55%)
URC Holdings Corporation -
144A (c)
7.88%, due 06/30/06 ....................... $5,000 $ 5,438
MORTGAGE BANKERS AND BROKERS (2.29%)
Countrywide Home Loans, Inc.
6.51%, due 02/11/05 ....................... 8,000 8,050
SECURITY & COMMODITY BROKERS (2.14%)
Merrill Lynch & Co., Inc.
6.02%, due 05/11/01 ....................... 7,500 7,500
-------
Total Corporate Debt Securities
(cost: $ 76,289).............................. 77,540
-------
NUMBER OF MARKET
SHARES VALUE
-------- -------
PREFERRED STOCK (2.42%)
MOTION PICTURES (2.42%)
The News Corporation Limited -
Sponsored ADR (b) ......................... 300,000 $ 8,475
-------
Total Preferred Stock
(cost: $ 5,146)......................................... 8,475
-------
COMMON STOCKS (53.01%)
AIR TRANSPORTATION (1.03%)
Comair Holdings, Inc. ........................ 117,500 3,628
AUTOMOTIVE (3.01%)
Chrysler Corporation ......................... 75,000 4,228
Ford Motor Company ........................... 50,000 2,950
PACCAR Inc. .................................. 65,000 3,396
COMMERCIAL BANKS (1.29%)
Chase Manhattan Corporation .................. 60,000 4,530
COMMUNICATION (0.69%)
Cox Communications, Inc. -
Class A (a) ............................... 50,000 2,422
COMMUNICATIONS EQUIPMENT (1.62%)
ECI Telecommunications Limited ............... 150,000 5,681
COMPUTER & DATA PROCESSING SERVICES (1.24%)
NCR Corporation (a) .......................... 133,750 4,347
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
62 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (0.61%)
Seagate Technology, Inc. (a) ................. 90,000 $ 2,143
ELECTRIC SERVICES (4.43%)
DPL Inc. ..................................... 226,500 4,105
Houston Industries, Incorporated ............. 120,000 3,705
Illinova Corporation ......................... 120,000 3,600
Southern Company ............................. 150,000 4,153
ELECTRICAL GOODS (0.62%)
Arrow Electronics, Inc. (a) .................. 100,000 2,175
ELECTRONIC COMPONENTS & ACCESSORIES (1.06%)
Intel Corporation ............................ 50,000 3,706
FINANCE (2.25%)
Fannie Mae ................................... 60,000 3,645
Freddie Mac .................................. 90,000 4,236
HEALTH SERVICES (1.24%)
Columbia/HCA Healthcare
Corporation ............................... 150,000 4,369
HOLDING & OTHER INVESTMENT OFFICES (4.47%)
Health Care Property
Investors, Inc. ........................... 100,700 3,631
Merry Land & Investment
Company, Inc. ............................. 175,000 3,686
Simon DeBartolo Group, Inc. .................. 100,000 3,250
Storage USA, Inc. ............................ 60,000 2,100
United Dominion Realty Trust, Inc. ........... 215,000 2,983
INDUSTRIAL MACHINERY & EQUIPMENT (2.23%)
AGCO Corporation ............................. 125,000 2,570
Applied Materials, Inc. (a) .................. 140,000 4,130
Briggs & Stratton Corporation ................ 30,000 1,123
INSURANCE (5.97%)
AFLAC Incorporated ........................... 150,000 4,547
Ambac Financial Group, Inc. .................. 90,000 5,265
Frontier Insurance Group, Inc. (b) ........... 220,000 4,964
MGIC Investment Corporation .................. 50,000 2,853
PMI Group, Inc. .............................. 45,000 3,302
MINING (1.08%)
Potash Corporation of
Saskatchewan, Inc. (b) .................... 50,000 3,778
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MORTGAGE BANKERS AND BROKERS (2.47%)
Countrywide Credit Industries, Inc. .......... 103,400 $ 5,248
Green Tree Financial Corporation ............. 80,000 3,425
OIL & GAS EXTRACTION (2.23%)
Diamond Offshore Drilling, Inc. (b)........... 125,000 5,000
R&B Falcon Corporation (a) ................... 125,000 2,828
PRIMARY METAL INDUSTRIES (0.94%)
Aluminum Company of
America (b) ............................... 50,000 3,297
RAILROADS (1.82%)
CSX Corporation .............................. 75,000 3,412
Norfolk Southern Corporation ................. 100,000 2,981
RESIDENTIAL BUILDING CONSTRUCTION (1.46%)
Clayton Homes, Inc. .......................... 270,000 5,130
RESTAURANTS (1.81%)
Tricon Global Restaurants, Inc. (a)........... 200,000 6,338
SECURITY & COMMODITY BROKERS (0.66%)
Lehman Brothers Holdings, Inc. ............... 30,000 2,327
SHOE STORES (1.05%)
Payless ShoeSource, Inc. (a) ................. 50,000 3,684
TELECOMMUNICATIONS (2.04%)
360 Communications Company (a)................ 125,000 4,000
Sprint Corporation ........................... 45,000 3,173
TOBACCO PRODUCTS (1.68%)
Philip Morris Companies, Inc. ................ 150,000 5,906
TRANSPORTATION EQUIPMENT (1.93%)
Halter Marine Group, Inc. (a) ................ 175,000 2,636
Trinity Industries, Inc. ..................... 100,000 4,150
WATER TRANSPORTATION (1.41%)
Tidewater, Inc. (b) .......................... 150,000 4,950
WHOLESALE TRADE DURABLE GOODS (0.67%)
Miami Computer Supply
Corporation (a) (b) ....................... 146,700 2,366
-------
Total Common Stocks
(cost: $ 159,201)......................................... 186,052
-------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 63
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
COMMERCIAL PAPER (7.19%)
Banner Receivables Corp.
5.68%, due 07/02/98 ....................... $ 768 $ 768
Banner Receivables Corp.
5.70%, due 07/13/98 ....................... 800 798
Broadway Capital Corp.
5.68%, due 07/06/98 ....................... 500 500
Broadway Capital Corp.
5.73%, due 07/06/98 ....................... 7,553 7,547
Broadway Capital Corp.
5.67%, due 07/06/98 ....................... 5,250 5,246
Engelhard Corp.
5.75%, due 07/13/98 ....................... 2,000 1,996
Gotham Funding Corporation
5.63%, due 07/08/98 ....................... 2,000 1,998
Gotham Funding Corporation
5.63%, due 07/15/98 ....................... 900 898
Holland Ltd. Securitization
6.00%, due 07/02/98 ....................... 1,500 1,500
PHH Corporation
5.65%, due 07/06/98 ....................... 1,000 999
PHH Corporation
5.85%, due 07/10/98 ....................... 1,000 998
Progress Funding Corp.
5.70%, due 07/08/98 ....................... 2,000 1,998
---------
Total Commercial Paper
(cost: $ 25,246)...................................... 25,246
---------
Total Investment Securities
(cost: $ 306,434)..................................... $ 338,054
=========
SUMMARY
Investments, at market value .................. 96.33% $ 338,054
Other assets in
excess of liabilities ...................... 3.67% 12,870
------ ---------
Net assets .................................... 100.00% $ 350,924
====== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 38,714. See footnote 1F to the
financial statements.
(c) 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.
64 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (93.06%)
AEROSPACE (2.46%)
Boeing Company .............................. 15,000 $ 668
GenCorp, Inc. ............................... 40,000 1,010
AIR TRANSPORTATION (3.47%)
FDX Corporation (a) ......................... 19,000 1,192
UAL Corporation (a) ......................... 15,000 1,170
APPAREL PRODUCTS (4.50%)
Tommy Hilfiger Corporation (a) .............. 30,000 1,875
U.S. Industries, Inc. ....................... 48,100 1,190
APPAREL & ACCESSORY STORES (2.69%)
Claire's Stores, Inc. ....................... 69,000 1,414
Ross Stores, Inc. ........................... 5,000 215
The Limited, Inc. ........................... 6,000 199
CHEMICALS & ALLIED PRODUCTS (1.13%)
Dexter Corporation .......................... 24,200 770
COMMERCIAL BANKS (4.08%)
BankAmerica Corporation ..................... 5,000 432
Citicorp .................................... 3,000 448
First Chicago NBD Corporation ............... 4,000 355
NationsBank Corporation ..................... 10,000 765
Provident Financial Group, Inc. ............. 17,000 776
COMMUNICATIONS EQUIPMENT (2.06%)
QUALCOMM, Inc. (a) (b) ...................... 25,000 1,405
COMPUTER & DATA PROCESSING SERVICES (3.99%)
Microsoft Corporation (a) ................... 10,000 1,084
Oracle Corporation (a) ...................... 27,000 663
Structural Dynamics Research
Corporation (a) .......................... 42,000 971
COMPUTER & OFFICE EQUIPMENT (5.59%)
3Com Corporation (a) ........................ 21,000 644
Applied Magnetics
Corporation (a) (b) ...................... 62,000 473
Compaq Computer Corporation ................. 52,000 1,475
Creative Technology
Limited (a) (b) .......................... 51,000 631
International Business Machines
Corporation .............................. 5,000 574
DEPARTMENT STORES (3.50%)
Sears, Roebuck and Co. ...................... 5,000 305
Venator Group, Inc. (a) (b) ................. 13,400 256
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
DEPARTMENT STORES (CONTINUED)
Wal-Mart Stores, Inc. ....................... 30,000 $ 1,823
ELECTRIC SERVICES (1.69%)
American Electric Power
Company, Inc. (b) ........................ 4,200 190
CalEnergy Company, Inc. (a) (b) ............. 32,000 962
ELECTRICAL GOODS (1.57%)
Arrow Electronics, Inc. (a) ................. 49,000 1,066
ELECTRONIC COMPONENTS & ACCESSORIES (4.05%)
Intel Corporation ........................... 14,000 1,038
Park Electrochemical Corp. .................. 31,000 655
Read-Rite Corporation (a) (b) ............... 85,000 770
Texas Instruments Incorporated .............. 5,000 292
HEALTH SERVICES (1.74%)
NovaCare, Inc. (a) .......................... 101,000 1,187
HOTELS & OTHER LODGING PLACES (1.79%)
Prime Hospitality Corporation (a) ........... 70,000 1,221
INDUSTRIAL MACHINERY & EQUIPMENT (6.09%)
Brunswick Corporation ....................... 6,000 149
Cummins Engine Company, Inc. ................ 22,000 1,128
Deere & Company ............................. 20,000 1,058
SPS Technologies, Inc. (a) .................. 14,000 819
US Filter Corporation (a) (b) ............... 35,000 982
INSTRUMENTS & RELATED PRODUCTS (2.16%)
Eastman Kodak Company ....................... 7,000 511
Honeywell Inc. .............................. 3,000 251
Xerox Corporation ........................... 7,000 711
INSURANCE (3.98%)
CMAC Investment Corporation ................. 11,000 676
Selective Insurance Group, Inc. ............. 42,000 941
Travelers Group, Inc. (b) ................... 18,000 1,091
LEATHER & LEATHER PRODUCTS (1.53%)
Genesco Inc. (a) ............................ 64,000 1,044
LIFE INSURANCE (0.63%)
American General Corporation ................ 6,000 427
MEDICAL INSTRUMENTS & SUPPLIES (2.01%)
Baxter International Inc. ................... 6,000 323
Datascope Corporation (a) ................... 9,000 239
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 65
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS & SUPPLIES (CONTINUED)
Respironics, Inc. (a) ........................ 52,000 $ 809
OIL & GAS EXTRACTION (3.64%)
Diamond Offshore Drilling, Inc. (b)........... 16,000 640
Global Marine Inc. (a) ....................... 42,700 798
SEACOR SMIT Inc. (a) ......................... 17,000 1,042
PERSONAL CREDIT INSTITUTIONS (0.67%)
American Express Company ..................... 4,000 456
PETROLEUM REFINING (0.85%)
Sun Company, Inc. ............................ 15,000 582
PETROLEUM & PETROLEUM PRODUCTS (0.52%)
Pennzoil Company ............................. 7,000 354
PHARMACEUTICALS (2.79%)
Merck & Co., Inc. ............................ 12,000 1,605
Perrigo Company (a) .......................... 29,300 295
PRIMARY METAL INDUSTRIES (3.29%)
Aluminum Company of
America (b) ............................... 18,000 1,187
USX-U.S. Steel Group, Inc. ................... 32,000 1,056
RADIO, TELEVISION, & COMPUTER STORES (2.87%)
CompUSA Inc. (a) ............................. 51,000 921
Inacom Corp. (a) (b) ......................... 32,500 1,032
RETAIL TRADE (1.21%)
Toys "R" Us, Inc. (a) ........................ 35,000 825
SAVINGS INSTITUTIONS (0.96%)
Washington Mutual, Inc. ...................... 15,000 652
SECURITY & COMMODITY BROKERS (1.03%)
Lehman Brothers Holdings, Inc. ............... 9,000 698
STONE, CLAY & GLASS PRODUCTS (2.20%)
Southdown, Inc. (b) .......................... 21,000 1,499
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (3.96%)
Ameritech Corporation ....................... 8,000 $ 359
AT&T Corporation ............................ 17,000 971
Bell Atlantic Corporation ................... 30,000 1,369
TRANSPORTATION EQUIPMENT (1.88%)
Halter Marine Group, Inc. (a) ............... 85,000 1,280
TRUCKING & WAREHOUSING (2.90%)
USFreightways Corporation ................... 34,000 1,117
Yellow Corporation (a) ...................... 46,000 854
WATER TRANSPORTATION (1.41%)
Tidewater, Inc. (b) ......................... 17,000 561
Trico Marine Services, Inc. (a) (b) ......... 29,000 397
WHOLESALE TRADE DURABLE GOODS (2.17%)
Johnson & Johnson ........................... 20,000 1,475
--------
Total Common Stocks
(cost: $ 69,804)........................................... 63,348
--------
Total Investment Securities
(cost: $ 69,804)........................................... $ 63,348
========
SUMMARY
Investments, at market value ................ 93.06% $ 63,348
Other assets in
excess of liabilities .................... 6.94% 4,726
------ --------
Net assets .................................. 100.00% $ 68,074
====== ========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 9,750. See footnote 1F to the
financial statements.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
66 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
U.S. GOVERNMENT OBLIGATIONS (25.17%)
U.S. Treasury Notes
9.25%, due 08/15/98 ....................... $ 150 $ 151
U.S. Treasury Notes
6.63%, due 06/30/01 ....................... 1,435 1,476
U.S. Treasury Notes
5.88%, due 02/15/04 ....................... 730 743
U.S. Treasury Notes
7.25%, due 08/15/04 ....................... 520 565
U.S. Treasury Notes
6.63%, due 05/15/07 ....................... 450 483
-------
Total U.S. Government Obligations
(cost: $ 3,318)............................................. 3,418
-------
ASSET-BACKED SECURITY (0.49%)
General Motors Acceptance
Corporation
6.75%, due 03/15/03 ......................... 66 67
-------
Total Asset-Backed Security
(cost: $ 65)................................................ 67
-------
CORPORATE DEBT SECURITIES (4.01%)
BUSINESS CREDIT INSTITUTIONS (1.17%)
Commercial Credit Company
6.13%, due 12/01/05 ......................... 160 159
COMMERCIAL BANKS (0.50%)
NationsBank Corporation
7.00%, due 05/15/03 ......................... 65 68
ELECTRIC SERVICES (2.34%)
Pacific Gas & Electric
7.88%, due 03/01/02 ......................... 300 318
-------
Total Corporate Debt Securities
(cost: $ 531)............................................ 545
-------
NUMBER OF MARKET
SHARES VALUE
--------- ------
PREFERRED STOCK (1.97%)
COMPUTER & DATA PROCESSING SERVICES (1.97%)
SAP AG - Vorzug ................................ 395 $ 268
-------
Total Preferred Stock
(cost: $ 63)............................................. 268
-------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (56.32%)
AEROSPACE (0.33%)
Mitsubishi Heavy Industries Ltd. .............. 12,000 $ 45
AMUSEMENT & RECREATION SERVICES (0.48%)
Harrah's Entertainment, Inc. (a) ............... 2,800 65
APPAREL & ACCESSORY STORES (0.40%)
Claire's Stores, Inc. .......................... 2,700 55
AUTO REPAIR, SERVICES & PARKING (0.41%)
Rollins Truck Leasing Corporation .............. 2,550 32
Ryder System, Inc. ............................. 750 24
AUTOMOTIVE (1.82%)
Bayerische Motoren Werke AG .................... 105 106
Bayerische Motoren Werke AG -
New (a) ..................................... 21 21
Bayerische Motoren Werke AG -
rights ...................................... 126 4
Honda Motor Company, Ltd. ...................... 1,800 64
Toyota Motor Corporation ....................... 2,000 52
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.47%)
AutoZone Inc. (a) .............................. 2,000 64
BEER, WINE, & DISTILLED BEVERAGES (0.59%)
Carlsberg A/S - Class A ........................ 1,100 80
BUSINESS SERVICES (0.91%)
Orix Corp. ..................................... 900 61
Secom Co. Ltd. ................................. 800 46
Sophus Berendsen - New - Class B................ 400 17
CHEMICALS & ALLIED PRODUCTS (1.23%)
Bayer AG ....................................... 1,980 103
Fuji Photo Film ............................... 1,000 35
Mitsubishi Chemical Corp. ...................... 16,000 29
COMMERCIAL BANKS (2.21%)
Den Danske Bank ................................ 1,050 126
MBNA Corporation ............................... 2,250 74
Sanwa Bank Ltd. ................................ 5,500 49
Sumitomo Bank, Limited ......................... 5,200 51
COMMUNICATIONS EQUIPMENT (2.98%)
ADC Telecommunications, Inc. (a)................ 1,800 66
Allen Telecom, Inc. (a) ........................ 3,400 40
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 67
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
Andrew Corporation (a) ...................... 2,600 $ 47
Bay Networks, Inc. (a) ...................... 2,430 78
Lucent Technologies, Inc. ................... 1,000 83
Northern Telecom Limited .................... 1,600 91
COMPUTER & DATA PROCESSING SERVICES (0.40%)
Teradyne, Inc. (a) .......................... 2,000 54
COMPUTER & OFFICE EQUIPMENT (2.03%)
3Com Corporation (a) ........................ 2,100 64
Cabletron Systems, Inc. (a) ................. 4,700 63
Cisco Systems, Inc. (a) ..................... 915 84
International Game Technology ............... 2,700 65
CONSTRUCTION (0.32%)
Daiwa House Industry Co., Ltd. .............. 5,000 44
ELECTRIC SERVICES (1.00%)
Tokyo Electric Power ........................ 3,500 69
VEBA AG ..................................... 1,000 67
ELECTRICAL GOODS (0.39%)
Motorola, Inc. .............................. 1,000 53
ELECTRONIC COMPONENTS & ACCESSORIES (1.41%)
Fujitsu Ltd. ................................ 6,000 63
Intel Corporation ........................... 900 67
Novellus Systems, Inc. (a) .................. 1,700 61
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.75%)
Canon, Inc. ................................. 2,000 45
NEC Corporation ............................. 7,200 67
Sharp Corporation ........................... 8,000 65
Sony Corporation ............................ 700 60
ENGINEERING & MANAGEMENT SERVICES (0.49%)
Halliburton Company ......................... 1,500 67
ENVIRONMENTAL SERVICES (0.63%)
Ratin A/S - Class B ......................... 400 85
FABRICATED METAL PRODUCTS (0.27%)
Mitsubishi Materials Corporation ............ 18,000 37
FOOD & KINDRED PRODUCTS (0.35%)
RJR Nabisco Holdings Corp. .................. 2,000 48
HOLDING & OTHER INVESTMENT OFFICES (0.85%)
Marubeni Corporation ........................ 25,000 50
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
HOLDING & OTHER INVESTMENT OFFICES (CONTINUED)
Nikko Securities Company Ltd. ............... 16,000 $ 66
HOTELS & OTHER LODGING PLACES (0.75%)
Circus Circus Enterprises, Inc. (a) ......... 2,600 44
Mirage Resorts, Incorporated (a) ............ 2,700 58
INDUSTRIAL MACHINERY & EQUIPMENT (0.92%)
Applied Materials, Inc. (a) ................. 1,900 56
Baker Hughes Incorporated ................... 2,000 69
INSTRUMENTS & RELATED PRODUCTS (0.32%)
KLA-Tencor Corporation (a) .................. 1,600 44
INSURANCE (4.96%)
Aetna Inc. .................................. 800 61
Allstate Corporation ........................ 700 64
A/S Forsikrings selskabet Codan ............. 400 56
Chubb Corporation ........................... 800 64
CNA Financial Corporation (a) ............... 1,500 70
General Re Corporation ...................... 300 76
St. Paul Companies, Inc. .................... 2,761 116
United HealthCare Corporation ............... 1,200 76
Wellpoint Health Networks Inc. (a)........... 1,200 89
INSURANCE AGENTS, BROKERS & SERVICE (1.16%)
Allianz AG .................................. 200 67
Humana Inc. (a) ............................. 2,900 90
MACHINERY, EQUIPMENT & SUPPLIES (1.24%)
Daikin Industries Ltd. ...................... 7,000 45
Mannesmann AG ............................... 1,200 123
MANUFACTURING INDUSTRIES (0.81%)
Cheminov Holding A/S - Class B .............. 2,000 43
Danisco A/S ................................. 1,000 67
METAL MINING (2.91%)
Barrick Gold Corporation .................... 4,100 79
Battle Mountain Gold Company ................ 14,400 86
Homestake Mining Company .................... 7,100 74
Newmont Mining Corporation .................. 2,100 50
Placer Dome, Inc. ........................... 9,000 106
MORTGAGE BANKERS AND BROKERS (0.74%)
ContiFinancial Corporation (a) .............. 1,500 35
Green Tree Financial Corporation ............ 1,550 66
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
68 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MOTION PICTURES (0.89%)
Time Warner, Inc. ............................ 800 $ 68
Walt Disney Company .......................... 500 53
MOTOR VEHICLES, PARTS & SUPPLIES (0.28%)
Pep Boys - Manny, Moe & Jack ................. 2,000 38
OIL & GAS EXTRACTION (0.99%)
Schlumberger Limited ......................... 1,000 68
Transocean Offshore, Inc. .................... 1,500 67
PERSONAL CREDIT INSTITUTIONS (1.32%)
Capital One Financial Corporation............. 900 112
Household International, Inc. ................ 1,350 67
PHARMACEUTICALS (3.90%)
Eli Lilly and Company ........................ 900 59
Merck & Co., Inc. ............................ 400 54
Novo Nordisk A/S - Class B ................... 1,600 221
Pfizer, Inc. ................................. 700 76
Sankyo Company, Ltd. ......................... 2,000 46
Schering-Plough Corporation .................. 800 73
PRIMARY METAL INDUSTRIES (1.43%)
Degussa AG ................................... 1,200 77
Kawasaki Steel Corporation ................... 30,000 54
Nippon Steel Corporation ..................... 36,000 63
PRINTING & PUBLISHING (0.62%)
Viacom, Inc. - Class B (a) ................... 1,450 84
REAL ESTATE (0.32%)
Mitsui Fudosan Co., Ltd. ..................... 5,400 43
RESTAURANTS (2.17%)
Applebee's International, Inc. ............... 1,400 31
Cracker Barrel Old Country
Store, Inc. ............................... 1,440 46
Lone Star Steakhouse &
Saloon, Inc. (a) .......................... 2,950 41
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
RESTAURANTS (CONTINUED)
McDonald's Corporation ....................... 1,370 $ 95
Outback Steakhouse, Inc. (a) ................. 1,200 47
Wendy's International, Inc. .................. 1,500 35
RETAIL TRADE (2.50%)
Office Depot, Inc. (a) ....................... 2,000 63
OfficeMax, Inc. (a) .......................... 3,000 50
Staples, Inc. (a) ............................ 3,000 87
Toys "R" Us, Inc. (a) ........................ 1,700 40
Viking Office Products, Inc. (a) ............. 3,200 100
RUBBER & MISC. PLASTIC PRODUCTS (0.98%)
Adidas-Salomon AG ............................ 760 133
TELECOMMUNICATIONS (3.66%)
Ameritech Corporation ........................ 1,400 63
BellSouth Corporation ........................ 1,000 67
Deutsche Telekom AG .......................... 3,800 104
GTE Corporation .............................. 1,100 61
Nippon Telegraph &
Telephone Corp. ........................... 6 50
Tele Danmark A/S ............................. 1,000 96
U S WEST, Inc. ............................... 1,200 56
TEXTILE MILL PRODUCTS (0.27%)
Toray Industries, Inc. ....................... 7,000 36
TOBACCO PRODUCTS (0.85%)
Philip Morris Companies, Inc. ................ 1,500 59
UST, Inc. .................................... 2,100 57
TRANSPORTATION EQUIPMENT (0.21%)
Nissan Motor Company, Ltd. ................... 9,000 28
TRUCKING & WAREHOUSING (0.40%)
USFreightways Corporation .................... 850 28
Werner Enterprises, Inc. .................... 1,437 26
--------
Total Common Stocks
(cost: $ 7,288).......................................... 7,648
--------
Total Investment Securities
(cost: $ 11,265)......................................... $ 11,946
========
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 69
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------
SUMMARY
Investments, at market value ................. 87.96% $ 11,946
Other assets in
excess of liabilities ..................... 12.04% 1,635
----- --------
Net assets ................................... 100.00% $ 13,581
====== ========
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET
VALUE PERCENTAGE
------- ----------
Denmark ................................... $ 791 6.62%
Germany ................................... 1,073 8.98%
Japan ..................................... 1,364 11.42%
United States ............................. 8,718 72.98%
-------- --------
Investments, at market value ............ $ 11,946 100.00%
======== ========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No 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.
70 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (91.18%)
AEROSPACE (1.71%)
Sundstrand Corporation ...................... 61,550 $ 3,524
AIR TRANSPORTATION (2.37%)
Delta Air Lines, Inc. ....................... 37,500 4,847
AUTOMOTIVE (1.09%)
General Motors Corporation .................. 33,500 2,238
CHEMICALS & ALLIED PRODUCTS (5.54%)
Air Products and Chemicals, Inc. ............ 59,600 2,384
E. I. du Pont de Nemours
and Company .............................. 22,400 1,672
IMC Global, Inc. ............................ 55,700 1,678
Morton International, Inc. .................. 104,000 2,600
Praxair, Inc. ............................... 65,000 3,043
COMMERCIAL BANKS (11.15%)
Bank of New York Company, Inc. .............. 60,500 3,672
Chase Manhattan Corporation ................. 68,800 5,193
First Union Corporation (b) ................. 98,800 5,754
National City Corporation ................... 46,600 3,309
Norwest Corporation ......................... 133,400 4,986
COMMUNICATION (3.00%)
MediaOne Group Inc. (a) (b) ................. 140,600 6,177
CONSTRUCTION (0.12%)
Foster Wheeler Corporation .................. 11,800 253
DEPARTMENT STORES (2.20%)
Federated Department
Stores, Inc. (a) (b) ..................... 84,000 4,520
ELECTRONIC COMPONENTS & ACCESSORIES (2.06%)
Texas Instruments Incorporated .............. 72,600 4,233
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.33%)
Emerson Electric Company .................... 61,600 3,719
Maytag Corporation .......................... 15,000 741
Thomas & Betts Corporation .................. 48,300 2,379
ENGINEERING & MANAGEMENT SERVICES (0.63%)
Halliburton Company (b) ..................... 29,000 1,292
FABRICATED METAL PRODUCTS (2.32%)
Cooper Industries, Inc. ..................... 42,700 2,346
Fortune Brands, Inc. ........................ 63,000 2,422
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
HEALTH SERVICES (1.54%)
Columbia/HCA Healthcare
Corporation .............................. 108,900 $ 3,172
INDUSTRIAL MACHINERY & EQUIPMENT (10.09%)
Case Corporation (b) ........................ 71,000 3,426
Caterpillar Inc. (b) ........................ 108,000 5,710
Deere & Company ............................. 81,450 4,307
Harnischfeger Industries, Inc. .............. 32,000 906
Ingersoll-Rand Company ...................... 66,500 2,930
Kennametal, Inc. ............................ 12,300 514
York International Corporation .............. 67,300 2,932
INSTRUMENTS & RELATED PRODUCTS (0.95%)
Raytheon Company - Class A .................. 2,136 123
Xerox Corporation ........................... 18,000 1,829
INSURANCE (12.52%)
Aetna Inc. (b) .............................. 53,000 4,035
Allstate Corporation ........................ 46,400 4,249
American International Group, Inc............ 20,300 2,964
Hartford Financial Services
Group, Inc. .............................. 34,000 3,889
Loews Corporation ........................... 78,700 6,856
Travelers Property Casualty Corp. ........... 87,300 3,743
MACHINERY, EQUIPMENT & SUPPLIES (1.77%)
W.W. Grainger, Inc. ......................... 73,000 3,636
MOTION PICTURES (2.54%)
Time Warner, Inc. ........................... 61,000 5,211
MOTOR VEHICLES, PARTS & SUPPLIES (0.23%)
Exide Corporation ........................... 28,500 479
OIL & GAS EXTRACTION (10.61%)
Dresser Industries, Inc. .................... 85,200 3,754
Noble Affiliates, Inc. ...................... 32,500 1,235
Noble Drilling Corporation (a) .............. 147,600 3,552
Ocean Energy, Inc. (a) ...................... 232,690 4,552
R&B Falcon Corporation (a) .................. 80,298 1,817
Santa Fe International Corporation........... 112,200 3,394
Transocean Offshore, Inc. ................... 78,800 3,507
PAPER & ALLIED PRODUCTS (0.87%)
Champion International
Corporation .............................. 36,300 1,786
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 71
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PERSONAL CREDIT INSTITUTIONS (0.56%)
Household International, Inc. .............. 22,950 $ 1,142
PETROLEUM REFINING (1.11%)
Coastal Corporation ........................ 32,700 2,283
PRIMARY METAL INDUSTRIES (1.84%)
Alumax Inc. (a) ............................ 39,404 1,827
USX-US Steel Group, Inc. ................... 59,000 1,947
PRINTING & PUBLISHING (1.74%)
American Greetings Corporation -
Class A ................................. 70,000 3,566
RAILROADS (1.51%)
Burlington Northern Santa Fe ............... 31,700 3,113
SECURITY & COMMODITY BROKERS (1.18%)
Bear Stearns Companies, Inc. ............... 42,750 2,431
TELECOMMUNICATIONS (0.09%)
U S WEST, Inc. ............................. 3,840 180
TOBACCO PRODUCTS (3.74%)
Philip Morris Companies, Inc. .............. 195,000 7,677
TRANSPORTATION EQUIPMENT (0.03%)
Halter Marine Group, Inc. (a) .............. 4,593 69
WATER TRANSPORTATION (0.59%)
Tidewater, Inc. (b) ........................ 36,900 1,218
WHOLESALE TRADE NONDURABLE GOODS (2.15%)
Unilever NV - NY Shares - ADR .............. 56,000 4,421
--------
Total Common Stocks
(cost: $ 158,665)...................................... 187,364
--------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM U.S. GOVERNMENT
OBLIGATION (2.41%)
U.S. Treasury Bill
5.01%, due 09/10/98 ..................... $ 5,000 $ 4,951
---------
Total Short-Term U.S. Government Obligation
(cost: $ 4,951).......................................... 4,951
---------
SHORT-TERM OBLIGATION (6.37%)
Investors Bank & Trust Company (c)
5.20%, Repurchase
Agreement dated 6/30/98
to be repurchased at
$ 13,096 on 07/01/98........................ 13,094 13,094
---------
Total Short-Term Obligation
(cost: $ 13,094)......................................... 13,094
---------
Total Investment Securities
(cost: $ 176,710)........................................ $ 205,409
=========
SUMMARY
Investments, at market value ......... 99.96% $ 205,409
Other assets in
excess of liabilities ............. 0.04% 88
----- ---------
Net assets ........................... 100.00% $ 205,497
====== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1998, the security is on loan. The market value of all
securities on loan at June 30, 1998, is $ 21,918. See footnote 1F to the
financial statements.
(c) Collateralized by $ 3,740 Freddie Mac London Interbank Offered Rate Floater
- Series 1608 - Class FN 6.39% due 11/15/23; $ 10,000 Fannie Mae 7.15% due
08/25/20; market value and accrued interest aggregated $ 3,580 and $ 10,173,
respectively, for the collateral at June 30, 1998.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
72 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CONVERTIBLE BOND (0.07%)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.07%)
Sony Corporation
1.4%, due 03/31/05 ........................ $ 2,000 $ 22
------
Total Convertible Bond
(cost: $ 22)................................................. 22
------
NUMBER OF MARKET
SHARES VALUE
--------- ------
PREFERRED STOCKS (0.66%)
MEDICAL INSTRUMENTS & SUPPLIES (0.10%)
Fresenius Medical Care AG .................... 742 $ 34
OIL & GAS EXTRACTION (0.16%)
Petroleo Brasileiro S/A-Petrobas ............. 280,000 52
TELECOMMUNICATIONS (0.40%)
Telecomunicacoes de Sao Paulo
S/A - Telesp .............................. 31,509 7
Telecomunicacoes do Rio de Janeiro
S.A. - Telerj ............................. 929,103 70
Telerj Celular S.A. - Class B (a) ............ 838,354 50
Telesp Celular S.A. - Class B (a) ............ 30,095 2
-----
Total Preferred Stocks
(cost: $ 257)................................................ 215
-----
COMMON STOCKS (92.44%)
AEROSPACE (0.28%)
British Aerospace Plc ........................ 11,776 90
AGRICULTURE (0.04%)
Malakoff Berhad .............................. 7,000 13
AMUSEMENT & RECREATION SERVICES (2.05%)
Airtours Plc ................................. 43,909 332
Granada Group Plc ............................ 18,317 337
APPAREL PRODUCTS (0.05%)
Giordano International, Limited .............. 76,000 15
AUTOMOTIVE (3.43%)
Daimler-Benz AG .............................. 2,141 211
GKN Plc ...................................... 5,700 73
Honda Motor Company, Ltd. .................... 5,000 178
Mazda Motor Corporation ...................... 14,000 48
Mitsubishi Motors Corporation ................ 5,000 31
Qingling Motors Company ...................... 16,000 4
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
AUTOMOTIVE (CONTINUED)
Renault SA (a) ............................... 3,810 $ 217
Volkswagen AG ................................ 373 360
BEER, WINE, & DISTILLED BEVERAGES (0.49%)
Diageo plc ................................... 11,245 133
Foster's Brewing Group Limited ............... 12,000 28
BEVERAGES (0.91%)
Coca-Cola Amatil, Ltd. ....................... 17,510 117
Fomento Economico Mexicano, SA
de C.V. - Sponsored ADR ................... 1,400 44
Panamerican Beverages, Inc. -
Class A ................................... 4,091 129
Pepsi - Gemex S.A. -
Sponsored GDR ............................. 600 7
BUSINESS CREDIT INSTITUTIONS (0.20%)
Newcourt Credit Group Inc. ................... 1,299 64
BUSINESS SERVICES (0.52%)
Hutchison Whampoa Limited .................... 2,000 11
Nichiei ...................................... 330 23
SEMA Group Plc ............................... 7,576 90
Vedior ....................................... 1,610 46
CHEMICALS & ALLIED PRODUCTS (1.49%)
Johnson Matthey Plc .......................... 3,919 35
Laporte plc .................................. 1,100 13
Mitsubishi Chemical Corp. .................... 4,000 7
SGL Carbon AG ................................ 2,725 318
Shin-Etsu Chemical Co., Ltd. ................. 6,000 104
Sumitomo Chemical Co., Ltd. .................. 3,000 9
COMMERCIAL BANKS (14.45%)
Alpha Credit Bank ............................ 760 62
Alpha Credit Bank - rights ................... 680 1
Banca Intesa S.p.A. .......................... 25,527 142
Banco Bilbao Vizcaya, S.A. ................... 6,240 320
Banco Comercial Portugues, SA ................ 5,727 163
Banco Frances S.A. -
Sponsored ADR ............................. 2,900 67
Bank of Scotland ............................. 15,141 170
Bank of Tokyo-Mitsubishi, Ltd. ............... 3,000 32
Compagnie Financiere de Paribas .............. 3,048 326
Barclays Plc ................................. 2,400 69
Bayerische Vereinsbank AG .................... 2,926 248
BHW Holding AG ............................... 8,250 143
Commerzbank AG ............................... 213 8
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 73
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
Corporacion Bancaria
de Espana SA .............................. 11,248 $ 252
Credito Italiano ............................. 34,183 178
Dao Heng Bank Group Ltd. ..................... 5,000 7
Den norske Bank ASA .......................... 13,987 73
Development Bank of Singapore
Limited ................................... 1,300 7
Grupo Financiero Bancomer -
Sponsored ADR - 144A (b) .................. 10,497 77
Grupo Financiero Bancomer -
Sponsored ADR ............................. 157 1
HSBC Holdings Plc ............................ 5,979 146
Industrial Bank of Japan ..................... 5,000 31
ING Groep N.V. ............................... 12,902 846
Lloyds TSB Group Plc ......................... 6,117 86
Merita Ltd. - Class A ........................ 25,610 169
Metropolitan Bank &
Trust Company ............................. 6,820 40
National Australia Bank, Ltd. ................ 1,800 24
National Bank of Greece (b) .................. 690 18
Sanwa Bank Ltd. .............................. 5,000 45
Societe Generale - Class A ................... 1,486 309
Sumitomo Bank, Limited ....................... 5,000 49
Svenska Handelsbanken - Class A .............. 5,395 250
UBS AG ....................................... 675 251
Uniao de Bancos Brasileiros S.A. -
Sponsored GDR ............................. 3,686 109
COMMUNICATION (0.75%)
EMI Group Plc ................................ 3,012 26
Reed International Plc ....................... 20,394 185
Saatchi & Saatchi Plc ........................ 12,472 35
COMMUNICATIONS EQUIPMENT (1.25%)
ECI Telecommunications Ltd. .................. 6,932 263
NTT Data Corporation ......................... 4 145
COMPUTER & DATA PROCESSING SERVICES (1.86%)
Baan Company, N.V. (a) ....................... 4,190 151
Cap Gemini SA ................................ 2,677 421
Dimension Data Holdings
Limited (a) ............................... 6,777 37
COMPUTER & OFFICE EQUIPMENT (0.35%)
Comverse Technology, Inc. (a) ................ 2,197 114
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
CONSTRUCTION (0.98%)
Cheung Kong Infrastructure
Holdings .................................. 13,000 $ 25
Hi Cement Corporation ........................ 20,000 1
Suez Lyonnaise des Eaux ...................... 1,543 254
Toda Corporation ............................. 10,000 40
ELECTRIC SERVICES (2.31%)
Centrais Eletricas Brasileiras S.A. -
Electrobras - Sponsored ADR ............... 3,800 58
CLP Holdings Limited ......................... 2,000 9
Energie-Versorgung
Niederoesterreich AG ...................... 793 119
Hongkong Electric Holdings Ltd. .............. 5,000 15
National Grid Group Plc ...................... 3,740 25
National Power Plc ........................... 14,800 139
Scottish Power plc ........................... 10,500 92
Sumitomo Electric Industries ................. 4,000 40
Tohoku Electric Power
Company, Inc. ............................. 1,000 15
VEBA AG ...................................... 3,600 242
ELECTRIC, GAS & SANITARY SERVICES (0.28%)
Severn Trent Plc ............................. 5,322 93
ELECTRONIC COMPONENTS & ACCESSORIES (0.97%)
Electrocomponents Plc ........................ 17,659 139
Fairey Group Plc ............................. 3,000 17
General Electric Company Plc ................. 7,500 65
Taiwan Semiconductor
Manufacturing Company Ltd. -
Sponsored ADR (a) ......................... 5,739 97
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.34%)
Canon, Inc. .................................. 11,000 250
Hitachi Maxwell .............................. 4,000 76
Matsushita Electric Industrial
Company, Ltd. ............................. 3,000 48
Mitsumi Electric Company, Ltd. ............... 2,000 35
NEC Corporation .............................. 2,000 19
Nintendo Company Ltd. ........................ 400 37
Nitto Denko Corp. ............................ 2,000 30
Pioneer Electronic Corporation ............... 1,000 19
Royal Philips Electronics N.V. ............... 5,523 464
Samsung Display Devices Company............... 1,670 46
Sony Corporation ............................. 4,300 371
Uniden Corporation ........................... 2,000 22
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
74 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ENGINEERING & MANAGEMENT SERVICES (3.27%)
ABB AG ....................................... 293 $ 433
Autoliv, Inc. ................................ 7,720 247
FKI plc ...................................... 25,519 74
Howard Smith, Limited ........................ 2,390 14
LucasVarity Plc .............................. 55,112 219
VA Technologie AG ............................ 661 82
FOOD STORES (3.69%)
Carrefour SA ................................. 363 230
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar - Sponsored ADR .................... 3,675 83
Etablissements Economiques
du Casino Guichard-
Perrachon SA .............................. 4,715 377
Jeronimo Martins, SGPS, SA ................... 1,678 81
Nestle SA .................................... 101 216
Safeway Plc .................................. 14,200 93
Tesco Plc .................................... 12,675 124
FOOD & KINDRED PRODUCTS (0.51%)
Devro Plc .................................... 7,882 66
Gruma S.A. - Class B (a) ..................... 10,531 23
Nippon Meat Packers, Inc. .................... 4,000 49
San Miguel Corporation - Class B ............. 20,000 27
FURNITURE & HOME FURNISHINGS (0.10%)
Industrie Natuzzi Spa -
Sponsored ADR ............................. 1,239 32
GAS PRODUCTION & DISTRIBUTION (0.47%)
BG Plc ....................................... 13,755 80
Osaka Gas Co. ................................ 29,000 74
HOLDING & OTHER INVESTMENT OFFICES (1.49%)
Cosco Pacific Ltd. ........................... 15,000 5
Desc S.A. de C.V. - Series B ................. 16,100 82
Grupo Carso SA de CV -
Sponsored ADR ............................. 11,645 96
Investor AB - Class B ........................ 525 31
IS Himalayan Fund N.V. (a) ................... 1,000 8
Kinnevik AB - Class B ........................ 880 29
Montedison S.p.A. ............................ 190,222 236
INDUSTRIAL MACHINERY & EQUIPMENT (1.48%)
Blue Circle Industries Plc ................... 4,595 26
Hitachi Construction Machinery
Co., Ltd. ................................. 4,000 13
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
Pioneer International Limited ................ 9,400 $ 22
Siebe Plc .................................... 21,058 421
INSURANCE (3.91%)
CGU PLC ...................................... 6,495 121
General Accident Plc ......................... 1,600 37
Legal & General Group Plc .................... 2,000 21
Muenchener Rueckversicherungs-
Gesellschaft AG ........................... 525 261
National Mutal Holdings Limited .............. 6,500 14
Royal & Sun Alliance Insurance
Group Plc ................................. 18,846 195
Zurich Versicherungs-Gesellschaft ............ 985 629
INSURANCE AGENTS, BROKERS & SERVICE (2.23%)
Axa .......................................... 4,021 452
Pohjola Insurance Group - Class B ............ 801 40
Sampo Insurance Company Ltd. -
Class A ................................... 5,028 238
IRON & STEEL FOUNDRIES (0.04%)
Ispat International NV (a) ................... 669 13
LIFE INSURANCE (0.37%)
Prudential Corporation PLC ................... 9,250 122
MACHINERY, EQUIPMENT & SUPPLIES (6.01%)
Alstom (a) ................................... 11,101 366
Komatsu Ltd. ................................. 2,000 10
Mannesmann AG ................................ 9,130 940
Minebea Company Ltd. ......................... 6,000 60
Schneider SA ................................. 7,371 588
MANUFACTURING INDUSTRIES (0.52%)
Barlow Limited ............................... 6,597 35
Hyundai Heavy Industries ..................... 3,060 65
Johnson Electric Holdings, Ltd. .............. 19,000 70
MEDICAL INSTRUMENTS & SUPPLIES (0.81%)
Fresenius Medical Care AG .................... 4,237 265
MINING (0.01%)
North Limited ................................ 2,000 4
MOTOR VEHICLES, PARTS & SUPPLIES (1.00%)
PT Astra International ....................... 27,000 2
Valeo SA ..................................... 3,181 325
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 75
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED
OIL & GAS EXTRACTION (5.57%)
Coflexip SA - Sponsored ADR .................. 2,948 $ 180
ENI SPA ...................................... 32,600 212
Repsol S.A. .................................. 6,767 372
Saipem S.p.A. ................................ 62,074 320
Shell Transport & Trading
Company ................................... 20,794 147
Total SA - Class B ........................... 4,520 588
PERSONAL CREDIT INSTITUTIONS (0.35%)
Credit Saison Co., Ltd. ...................... 500 10
Promise Co., Ltd. ............................ 300 12
Takefuji Corporation ......................... 2,000 92
PERSONAL SERVICES (0.28%)
Hays Plc ..................................... 5,514 93
PETROLEUM REFINING (1.09%)
Elf Aquitaine SA ............................. 2,540 357
PHARMACEUTICALS (4.05%)
Banyu Pharmaceutical Co., Ltd. ............... 2,000 22
Fujisawa Pharmaceutical Co., Ltd. ............ 4,000 37
Glaxo Wellcome Plc ........................... 4,730 142
Novartis AG - Registered Shares .............. 213 355
Pharmacia & Upjohn, Inc. ..................... 5,550 256
Pliva d.d. - Sponsored GDR ................... 1,255 20
Rhone-Poulenc - Class A ...................... 4,786 270
Teva Pharmaceutical Industries
Ltd. - Sponsored ADR ...................... 2,840 100
Zeneca Group Plc ............................. 2,815 121
PRIMARY METAL INDUSTRIES (2.67%)
Hoganas AB - Class B ......................... 7,635 170
Iscor Limited ................................ 25,715 5
Kawasaki Steel Corporation ................... 8,000 14
Nippon Steel Corporation ..................... 7,000 12
Pohang Iron & Steel Company
Ltd. - Sponsored ADR ...................... 1,310 16
Preussag AG .................................. 1,662 595
Sumitomo Special Metals Co., Ltd. ............ 2,000 42
Tubos de Acero de Mexico SA -
Sponsored ADR ............................. 1,400 18
PRINTING & PUBLISHING (0.89%)
Verenigde Nederlandse
Uitgeversbedrijven
Verenigd Bezit ............................ 7,994 290
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (0.29%)
Grupo Televisa S.A. - Sponsored
GDR (a) ................................... 2,500 $ 94
RAILROADS (0.58%)
East Japan Railway Co. ....................... 13 61
Railtrack Group Plc .......................... 5,166 127
REAL ESTATE (0.61%)
British Land Company Plc ..................... 10,750 111
Mitsui Fudosan Co., Ltd. ..................... 3,000 24
New World Development
Company, Ltd. ............................. 4,000 8
Sumitomo Realty & Development
Co., Ltd. ................................. 13,000 57
RESIDENTIAL BUILDING CONSTRUCTION (0.23%)
Berkeley Group Plc ........................... 7,080 74
RESTAURANTS (0.10%)
Compass Group Plc ............................ 2,770 32
RETAIL TRADE (0.73%)
D.F.S. Furniture Company Plc ................. 5,011 17
Great Universal Stores P.L.C. ................ 3,700 49
Marks & Spencer Plc .......................... 7,355 67
Marui Co. .................................... 3,000 45
Vendex International N.V. .................... 1,632 61
RUBBER & MISC. PLASTIC PRODUCTS (1.07%)
Adidas-Salomon AG ............................ 1,468 256
Bridgestone Corp. ............................ 2,000 47
Compagnie Generale des
Etablissements Michelin -
Class B ................................... 797 46
SECURITY & COMMODITY BROKERS (0.33%)
Reuters Group Plc ............................ 9,386 107
STONE, CLAY & GLASS PRODUCTS (0.06%)
Asahi Glass Company, Ltd. .................... 2,000 11
BPB Plc ...................................... 1,600 10
PT Mulia Industrindo ......................... 9,500 (c)
TELECOMMUNICATIONS (8.04%)
British Telecommunications Plc ............... 13,827 171
Japan Telecom Company Limited ................ 2 16
NetCom Systems AB - Class B (a)............... 3,088 118
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
76 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Nippon Telegraph & Telephone
Corp. ..................................... 4 $ 33
Nokia Oyj - Class A .......................... 10,627 785
Singapore
Telecommunications, Ltd. .................. 5,000 7
Telecom Corporation of New
Zealand Limited ........................... 3,700 15
Telecom Italia Mobile SpA -
ordinary .................................. 41,402 253
Telecom Italia Mobile SpA -
Class NC .................................. 59,593 199
Telecom Italia Spa - Class NC ................ 47,550 231
Telecomunicacoes Brasileiras S/A ............. 360,000 29
Telecomunicacoes Brasileiras S/A -
Sponsored ADR ............................. 2,627 286
Telecomunicacoes do Rio de Janeiro
S.A. - rights ............................. 5,905 (c)
Telefonaktiebolaget LM Ericsson -
Class B ................................... 1,310 38
Telefonica del Peru S.A. -
Sponsored ADR ............................. 2,984 61
Telefonica S.A. .............................. 6,955 322
Vodafone Group plc ........................... 4,846 62
TEXTILE MILL PRODUCTS (0.10%)
Kuraray Company Limited ...................... 4,000 34
TRANSPORTATION EQUIPMENT (0.74%)
Ishikawajima-Harima Heavy
Industries Co., Ltd. ...................... 8,000 15
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TRANSPORTATION EQUIPMENT (CONTINUED)
Schindler Holding AG ......................... 145 $ 221
Sembawang Corporation Ltd. ................... 6,000 7
TRANSPORTATION & PUBLIC UTILITIES (0.79%)
BAA Plc ...................................... 5,820 63
Brambles Industries, Ltd. .................... 9,945 195
WATER TRANSPORTATION (0.62%)
IHC Caland N.V. .............................. 3,594 202
WHOLESALE TRADE DURABLE GOODS (0.04%)
Itochu Corporation ........................... 6,000 13
WHOLESALE TRADE NONDURABLE GOODS (0.30%)
Hagemeyer N.V. ............................... 2,070 90
Rothmans of Pall Mall Berhad ................. 1,000 7
-------
Total Common Stocks
(cost: $ 27,107)............................................ 30,196
--------
Total Investment Securities
(cost: $ 27,386)............................................ $ 30,433
========
SUMMARY
Investments, at market value ................. 93.17% $ 30,433
Other assets in
excess of liabilities ..................... 6.83% 2,233
------- --------
Net assets ................................... 100.00% $ 32,666
======= ========
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 77
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
------------------------------------
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET
VALUE PERCENTAGE
------ ----------
Australia .............................. $ 419 1.38%
Austria ................................ 201 0.66%
Brazil ................................. 210 0.69%
Canada ................................. 64 0.21%
Denmark................................. 73 0.24%
Finland ................................ 1,232 4.05%
France ................................. 5,126 16.84%
Germany ................................ 3,881 12.75%
Greece ................................. 63 0.21%
Hong Kong .............................. 316 1.04%
Indonesia .............................. 2 0.01%
Italy .................................. 1,771 5.82%
Japan .................................. 2,530 8.31%
Malaysia ............................... 20 0.07%
Mexico ................................. 105 0.35%
Netherlands ............................ 2,149 7.06%
New Zealand ............................ 15 0.05%
Philippines ............................ 68 0.22%
Portugal ............................... 243 0.80%
Republic of Korea ...................... 110 0.36%
Singapore .............................. 21 0.07%
South Africa ........................... 76 0.25%
Spain .................................. 1,267 4.16%
Sweden ................................. 884 2.90%
Switzerland ............................ 2,105 6.92%
United States .......................... 2,247 7.38%
United Kingdom ......................... 5,235 17.20%
-------- ------
Investments, at market value ......... $ 30,433 100.00%
======== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No 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.
(c) Market Value is less than $ 1.
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.
78 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE PREFERRED STOCK (0.56%)
COMPUTER & DATA PROCESSING SERVICES (0.56%)
Microsoft Corporation ........................ 4,149 $ 394
-----
Total Convertible Preferred Stock
(cost: $ 376).......................................... 394
-----
COMMON STOCKS (94.20%)
AEROSPACE (3.20%)
AlliedSignal Inc. (b) ........................ 30,865 1,370
Lockheed Martin Corporation .................. 1,320 140
Textron, Inc. ................................ 10,126 726
AIR TRANSPORTATION (1.14%)
AMR Corporation (a) .......................... 849 71
Continental Airlines, Inc. -
Class B (a) ............................... 6,602 402
Delta Air Lines, Inc. ........................ 943 122
FDX Corporation (a) .......................... 943 59
KLM Royal Dutch Airlines NV -
NY Registered Shares ...................... 188 8
UAL Corporation (a) .......................... 1,415 110
US Airways Group, Inc. (a) ................... 330 26
AUTOMOTIVE (0.53%)
Ford Motor Company ........................... 4,212 249
General Motors Corporation ................... 599 40
ITT Industries, Inc. ......................... 2,074 78
BEVERAGES (1.74%)
Anheuser-Busch Companies,
Inc. (b) .................................. 8,370 395
Coca-Cola Company ............................ 398 34
PepsiCo, Inc. (b) ............................ 19,177 790
BUSINESS SERVICES (2.14%)
Catalina Marketing Corporation (a)............ 2,499 130
Cendant Corporation (a) ...................... 1,998 42
Equifax, Inc. ................................ 23,279 845
Interpublic Group of
Companies, Inc. ........................... 7,756 471
Young & Rubicam Inc. (a) ..................... 201 6
CHEMICALS & ALLIED PRODUCTS (3.74%)
Air Products and Chemicals, Inc. ............. 4,960 198
Airgas, Inc. (a) ............................. 4,338 62
Avery Dennison Corporation ................... 1,287 69
Avon Products, Inc. .......................... 2,815 218
Colgate-Palmolive Company .................... 3,077 271
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
E. I. du Pont de Nemours
and Company ............................... 12,591 $ 940
Gillette Company ............................. 1,523 86
IMC Global, Inc. ............................. 1,415 43
Morton International, Inc. ................... 7,319 183
Occidental Petroleum Corporation ............. 1,886 51
Procter & Gamble Company ..................... 5,305 483
W.R. Grace & Company (a) ..................... 566 10
COMMERCIAL BANKS (6.07%)
AmSouth Bancorporation ....................... 1,322 52
Bank of New York Company, Inc. ............... 2,249 136
BankAmerica Corporation ...................... 5,665 490
BankBoston Corporation ....................... 6,731 374
Chase Manhattan Corporation .................. 6,215 469
Citicorp ..................................... 6,273 936
Comerica Incorporated ........................ 708 47
Crestar Financial Corporation ................ 1,049 57
First Chicago NBD Corporation ................ 1,179 104
First Union Corporation ...................... 1,697 99
Fleet Financial Group, Inc. .................. 849 71
ING Groep N.V. - Sponsored ADR................ 1,428 93
J.P. Morgan & Company
Incorporated .............................. 439 51
Mellon Bank Corporation ...................... 3,150 219
National City Corporation .................... 3,042 216
NationsBank Corporation ...................... 236 18
Norwest Corporation .......................... 1,981 74
State Street Corporation ..................... 2,847 198
U.S. Bancorp ................................. 4,763 205
Wachovia Corporation ......................... 1,038 88
Wells Fargo & Company ........................ 641 237
COMMUNICATION (1.99%)
Comcast Corporation - Class A ................ 8,018 325
Comcast UK Cable Partners
Limited - Class A (a) ..................... 4,055 64
NTL Incorporated (a) ......................... 9,574 512
Tele-Communications TCI Ventures
Group - Class A (a) ....................... 3,253 65
Tele-Communications, Inc. -
Class A (a) ............................... 11,128 428
COMPUTER & DATA PROCESSING SERVICES (3.10%)
Automatic Data Processing, Inc. .............. 8,377 610
ChoicePoint Inc. (a) ......................... 99 5
Computer Associates
International, Inc. ....................... 1,235 69
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 79
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
Computer Sciences Corporation (a)............. 661 $ 42
First Data Corporation ....................... 29,518 983
GTECH Holdings Corporation (a)................ 1,085 37
Microsoft Corporation (a) .................... 1,622 176
Sun Microsystems, Inc. (a) ................... 4,715 205
Symantec Corporation (a) ..................... 1,604 42
COMPUTER & OFFICE EQUIPMENT (4.51%)
3Com Corporation (a) ......................... 581 18
Cisco Systems, Inc. (a) ...................... 7,364 678
EMC Corporation (a) .......................... 5,989 268
Hewlett-Packard Company ...................... 5,323 319
International Business Machines
Corporation ............................... 10,557 1,212
Minnesota Mining and
Manufacturing Company ..................... 377 31
Pitney Bowes, Inc. ........................... 11,072 533
Storage Technology
Corporation (a) ........................... 2,076 90
DEPARTMENT STORES (2.95%)
Dayton Hudson Corporation .................... 9,506 461
Federated Department
Stores, Inc. (a) .......................... 4,715 254
Sears, Roebuck and Co. ....................... 7,526 460
Wal-Mart Stores, Inc. ........................ 14,649 890
DRUG STORES & PROPRIETARY STORES (0.28%)
CVS Corporation .............................. 5,098 199
ELECTRIC SERVICES (1.77%)
American Electric Power
Company, Inc. ............................. 3,494 159
CMS Energy Corporation ....................... 2,169 95
Duke Energy Corporation ...................... 5,770 342
Edison International ......................... 1,038 31
Florida Progress Corporation ................. 3,395 140
FPL Group, Inc. .............................. 2,438 154
Illinova Corporation ......................... 1,149 34
New Century Energies, Inc. ................... 1,981 90
Northern States Power Company ................ 2,735 78
Pinnacle West Capital Corporation............. 1,415 64
Texas Utilities Company ...................... 1,130 47
ELECTRONIC COMPONENTS & ACCESSORIES (1.46%)
Analog Devices, Inc. (a) ..................... 3,106 76
Intel Corporation ............................ 10,610 786
Molex, Inc. - Class A ........................ 6,884 161
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.14%)
Emerson Electric Company ..................... 10,879 $ 657
Harman International Industries,
Incorporated .............................. 1,792 69
National Service Industries, Inc. ............ 1,424 72
ENGINEERING & MANAGEMENT SERVICES (0.11%)
Halliburton Company .......................... 943 42
Jacobs Engineering Group, Inc. (a)............ 990 32
ENVIRONMENTAL SERVICES (0.60%)
Laidlaw Environmental
Services, Inc. (a) ........................ 5,846 21
USA Waste Services, Inc. (a) ................. 4,291 212
Waste Management, Inc. ....................... 5,234 183
FABRICATED METAL PRODUCTS (0.30%)
Cooper Industries, Inc. ...................... 2,640 145
Masco Corporation ............................ 1,113 67
FINANCE (1.90%)
Fannie Mae ................................... 21,893 1,330
FOOD & KINDRED PRODUCTS (1.76%)
Archer-Daniels-Midland Company ............... 4,244 82
Bestfoods .................................... 5,423 315
ConAgra, Inc. ................................ 4,433 140
General Mills, Inc. .......................... 2,169 148
Hershey Foods Corporation .................... 896 62
Kellogg Company .............................. 1,171 44
Nestle SA .................................... 67 143
Ralston-Ralston Purina Group ................. 2,588 302
FORESTRY (0.26%)
Rayonier, Inc. ............................... 2,552 117
Weyerhaeuser Company ......................... 1,367 63
GAS PRODUCTION & DISTRIBUTION (0.27%)
El Paso Natural Gas Company .................. 2,980 114
MCN Energy Group Inc. ........................ 3,136 78
HEALTH SERVICES (0.35%)
Lincare Holdings, Inc. (a) ................... 3,768 158
Sun Healthcare Group, Inc. (a) ............... 2,045 30
Tenet Healthcare Corporation (a) ............. 1,839 57
HOTELS & OTHER LODGING PLACES (0.09%)
Circus Circus Enterprises (a) ................ 3,583 61
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
80 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (3.07%)
Applied Materials, Inc. (a) .................. 2,499 $ 74
Baker Hughes Incorporated .................... 6,838 236
Deere & Company .............................. 4,857 257
Dover Corporation ............................ 26,812 918
Metromedia International
Group, Inc. (a) ........................... 1,081 13
Parker-Hannifin Corporation .................. 1,320 50
Stanley Works ................................ 3,295 137
Timken Company ............................... 1,111 34
United Technologies Corporation .............. 3,614 334
UNOVA, Inc. (a) .............................. 1,415 30
Varian Associates, Inc. ...................... 1,608 63
INSTRUMENTS & RELATED PRODUCTS (1.29%)
Allergan, Inc. ............................... 8,394 389
Perkin-Elmer Corporation ..................... 1,085 67
Xerox Corporation ............................ 4,385 446
INSURANCE (5.85%)
American International Group, Inc. ........... 5,209 761
Chubb Corporation ............................ 3,911 314
General Re Corporation ....................... 3,277 831
Hartford Financial Services
Group Inc. ................................ 1,038 119
Loews Corporation ............................ 5,291 461
Travelers Group, Inc. ........................ 23,728 1,439
UNUM Corporation ............................. 2,912 162
INSURANCE AGENTS, BROKERS & SERVICE (0.79%)
Axa .......................................... 702 79
Marsh & McLennan
Companies, Inc. ........................... 7,829 473
LIFE INSURANCE (1.21%)
Equitable Companies Incorporated ............. 801 60
Jefferson-Pilot Corporation .................. 849 49
Lincoln National Corporation ................. 2,938 268
Provident Companies, Inc. .................... 8,977 310
ReliaStar Financial Corporation .............. 3,281 157
LUMBER & CONSTUCTION MATERIALS (0.50%)
Martin Marietta Materials, Inc. .............. 7,734 348
LUMBER & OTHER BUILDING MATERIALS (1.22%)
Home Depot, Inc. ............................. 7,159 595
Lowe's Companies, Inc. ....................... 6,318 256
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MACHINERY, EQUIPMENT & SUPPLIES (0.09%)
Mannesmann AG ................................. 632 $ 65
MANAGEMENT SERVICES (0.07%)
EG&G, Inc. .................................... 1,556 47
MANUFACTURING INDUSTRIES (0.21%)
Armstrong World Industries, Inc. .............. 566 38
Tyco International Ltd. ....................... 1,730 109
MEDICAL INSTRUMENTS & SUPPLIES (0.22%)
Baxter International Inc. ..................... 1,416 76
DENTSPLY International Inc. ................... 3,159 79
METAL MINING (0.40%)
Barrick Gold Corporation ...................... 3,772 72
Newmont Mining Corporation .................... 8,869 210
MINING (0.10%)
Pittston Brink's Group ........................ 1,839 68
MORTGAGE BANKERS AND BROKERS (0.08%)
Countrywide Credit Industries, Inc. ........... 1,075 55
MOTION PICTURES (1.56%)
Liberty Media Group - Class A (a) ............. 3,789 147
Time Warner, Inc. ............................. 2,533 216
Walt Disney Company ........................... 6,911 726
OIL & GAS EXTRACTION (3.03%)
Anadarko Petroleum Corporation ................ 1,509 101
Atlantic Richfield Company .................... 2,594 203
Burlington Resources Inc. ..................... 11,038 475
Nabors Industries, Inc. (a) ................... 5,706 113
R&B Falcon Corporation (a) .................... 4,119 93
Schlumberger Limited .......................... 13,430 917
Total SA - Sponsored ADR ...................... 1,697 111
Transocean Offshore, Inc. ..................... 566 25
Western Atlas Inc. (a) ........................ 212 18
YPF Sociedad Anonima -
Sponsored ADR .............................. 2,084 63
PAINT, GLASS, WALLPAPER STORES (0.40%)
Sherwin-Williams Company ...................... 8,494 281
PAPER & ALLIED PRODUCTS (1.03%)
Champion International
Corporation ................................ 943 46
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 81
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PAPER & ALLIED PRODUCTS (CONTINUED)
Fort James Corporation ....................... 302 $ 13
Kimberly-Clark Corporation ................... 11,251 516
Mead Corporation ............................. 3,583 114
Union Camp Corporation ....................... 590 29
PERSONAL CREDIT INSTITUTIONS (1.39%)
American Express Company (b) ................. 7,180 819
Associates First Capital
Corporation - Class A ..................... 1,602 123
Beneficial Corporation ....................... 188 29
PETROLEUM REFINING (4.71%)
British Petroleum Company Plc -
Sponsored ADR ............................. 2,887 255
Chevron Corporation .......................... 1,792 149
Elf Aquitaine SA - ADR ....................... 863 61
Exxon Corporation ............................ 14,469 1,032
Mobil Corporation ............................ 8,014 614
Royal Dutch Petroleum Company -
NY Shares ................................. 10,944 600
Texaco Inc. .................................. 4,003 239
Tosco Corporation ............................ 1,839 54
Unocal Corporation ........................... 8,042 288
PETROLEUM & PETROLEUM PRODUCTS (0.04%)
Pennzoil Company ............................. 566 29
PHARMACEUTICALS (10.55%)
Abbott Laboratories .......................... 23,454 959
American Home Products
Corporation ............................... 9,496 491
Bristol-Myers Squibb Company ................. 12,232 1,406
Cardinal Health, Inc. ........................ 5,572 522
Eli Lilly and Company ........................ 1,243 82
Henry Schein, Inc. (a) ....................... 469 22
Merck & Co., Inc. ............................ 10,695 1,430
Pfizer, Inc. ................................. 5,753 625
Pharmacia & Upjohn, Inc. ..................... 3,853 178
PharMerica, Inc. (a) ......................... 1,697 20
R. P. Scherer Corporation (a) ................ 4,682 415
Schering-Plough Corporation .................. 4,952 454
Shire Pharmaceuticals Group
PLC - ADR (a) ............................. 896 19
SmithKline Beecham Plc -
Sponsored ADR ............................. 4,411 267
Watson Pharmaceuticals, Inc. (a) ............. 10,206 476
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PRIMARY METAL INDUSTRIES (0.77%)
Hubbell Incorporated - Class B ............... 12,931 $ 538
PRINTING & PUBLISHING (1.15%)
Gannett Company, Inc. ........................ 8,346 593
Knight - Ridder, Inc. ........................ 3,206 177
McGraw-Hill Companies, Inc. .................. 424 35
RAILROADS (0.99%)
Burlington Northern Santa Fe ................. 4,991 490
Canadian Pacific, Ltd. ....................... 7,026 199
RESEARCH & TESTING SERVICES (0.17%)
AC Nielsen Corporation (a) ................... 4,692 118
RESTAURANTS (0.76%)
McDonald's Corporation ....................... 7,648 528
RETAIL TRADE (0.27%)
Costco Companies, Inc. (a) ................... 3,018 190
RUBBER & MISC. PLASTIC PRODUCTS (0.19%)
Goodyear Tire & Rubber Company................ 2,075 134
SECURITY & COMMODITY BROKERS (1.81%)
A.G. Edwards, Inc. ........................... 1,827 78
Merrill Lynch & Co., Inc. .................... 661 61
Morgan Stanley, Dean Witter
and Co. ................................... 7,569 692
Reuters Group Plc -
Sponsored ADR ............................. 4,958 340
T. Rowe Price Associates, Inc. ............... 1,524 57
Waddell & Reed Financial,
Inc. - Class A ............................ 1,651 40
TELECOMMUNICATIONS (5.20%)
AirTouch Communications,
Inc. (a) (b) .............................. 17,627 1,030
AT&T Corporation (b) ......................... 5,842 334
Bell Atlantic Corporation .................... 8,676 396
BellSouth Corporation ........................ 2,735 184
GTE Corporation .............................. 4,362 243
MCI Communications Corporation................ 754 44
SBC Communications Inc. ...................... 17,816 713
Sprint Corporation ........................... 2,499 176
Telecomunicacoes Brasileiras S/A -
Sponsored ADR ............................. 142 16
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
82 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Teleport Communications Group
Inc. - Class A (a) ........................ 754 $ 41
U S WEST, Inc. ............................... 3,395 160
WorldCom, Inc. (a) ........................... 6,212 301
TEXTILE MILL PRODUCTS (0.42%)
Sara Lee Corporation ......................... 5,305 297
TOBACCO PRODUCTS (0.82%)
Philip Morris Companies Inc. ................. 14,529 572
TRANSPORTATION EQUIPMENT (0.02%)
FMC Corporation (a) .......................... 235 16
TRANSPORTATION & PUBLIC UTILITIES (0.04%)
GATX Corporation ............................. 707 31
WATER TRANSPORTATION (0.22%)
Carnival Corporation ......................... 3,961 157
WHOLESALE TRADE DURABLE GOODS (1.85%)
Johnson & Johnson ............................ 15,578 1,149
Omnicare, Inc. ............................... 754 29
Sybron International
Corporation (a) ........................... 4,433 112
WHOLESALE TRADE NONDURABLE GOODS (0.31%)
International Multifoods
Corporation ............................... 708 19
Sysco Corporation ............................ 2,640 68
Unilever NV - NY Shares - ADR ................ 1,652 130
--------
Total Common Stocks
(cost: $ 60,178).......................................... 65,841
--------
Total Investment Securities
(cost: $ 60,554).......................................... $ 66,235
========
SUMMARY
Investments, at market value ................. 94.76% $ 66,235
Other assets in
excess of liabilities ..................... 5.24% 3,664
------ --------
Net assets ................................... 100.00% $ 69,899
====== ========
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET
VALUE PERCENTAGE
-------- ----------
France ................................. $ 79 0.12%
Germany ................................ 65 0.10%
Switzerland ............................ 143 0.22%
United States .......................... 65,948 99.56%
-------- ------
Investments, at market value ......... $ 66,235 100.00%
======== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) A portion of the security was pledged to cover margin requirements for
futures contracts. At June 30, 1998, the market value of securities pledged
amounted to $ 351.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 83
<PAGE>
WRL SERIES FUND, INC.
THIRD AVENUE VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (91.91%)
AUTOMOTIVE (5.01%)
Toyoda Automatic Loom
Works, Ltd. ............................... 44,000 $ 778
BUSINESS SERVICES (2.12%)
American Physicians Service
Group, Inc. (a) ........................... 46,000 329
COMMUNICATIONS EQUIPMENT (2.95%)
Glenayre Technologies, Inc. (a) .............. 42,500 457
COMPUTER & DATA PROCESSING SERVICES (4.57%)
Electronics for Imaging, Inc. (a) ............ 6,500 137
NCR Corporation .............................. 17,600 572
COMPUTER & OFFICE EQUIPMENT (9.19%)
3Com Corporation (a) ......................... 29,800 914
Planar Systems Inc. (a) ...................... 48,800 512
ELECTRONIC COMPONENTS & ACCESSORIES (16.32%)
AVX Corporation .............................. 27,000 434
FSI International, Inc. (a) .................. 59,900 580
Silicon Valley Group, Inc. (a) ............... 47,100 757
SpeedFam International, Inc. (a) ............. 41,300 761
INDUSTRIAL MACHINERY & EQUIPMENT (10.17%)
Electroglas, Inc. (a) ........................ 61,500 803
Tecumseh Products Company -
Class A ................................... 7,200 380
Tecumseh Products Company -
Class B ................................... 6,900 395
INSURANCE (23.48%)
Chiyoda Fire & Marine Insurance
Company, Limited .......................... 145,000 537
Enhance Financial Services
Group Inc. ................................ 14,000 473
Financial Security Assurance
Holdings Ltd. ............................. 10,000 588
Leucadia National Corporation ................ 17,900 592
Mitsui Marine and Fire Insurance
Company, Ltd. ............................. 152,000 764
Risk Capital Holdings, Inc. (a) .............. 27,600 688
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS & SUPPLIES (4.99%)
Hologic, Inc. (a) ............................. 20,000 $ 364
Protocol Systems, Inc. (a) .................... 47,700 411
OIL & GAS EXTRACTION (4.21%)
Nabors Industries, Inc. (a) ................... 33,000 654
RETAIL TRADE (0.81%)
ValueVision International, Inc. -
Class A (a) ................................ 31,200 125
TELECOMMUNICATIONS (2.55%)
Boston Communications
Group, Inc. (a) ............................ 44,600 396
WATER TRANSPORTATION (5.54%)
Alexander & Baldwin, Inc. ..................... 29,500 859
--------
Total Common Stocks
(cost: $ 15,248).......................................... 14,260
--------
Total Investment Securities
(cost: $ 15,248) ......................................... $ 14,260
========
SUMMARY
Investments, at market value ......... 91.91% $ 14,260
Other assets in
excess of liabilities ............. 8.09% 1,256
------ --------
Net assets ........................... 100.00% $ 15,516
====== ========
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO INVESTMENTS, AT
MARKET VALUE.
MARKET VALUE PERCENTAGE
------------ ----------
Japan .................................. $ 2,078 14.57%
United States .......................... 12,182 85.43%
-------- ------
Investments, at market value ......... $ 14,260 100.00%
======== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No 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.
84 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
REAL ESTATE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
June 30, 1998
All amounts (except share amounts) in thousands
(unaudited)
-----------------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (96.09%)
AMUSEMENT & RECREATION SERVICES (4.16%)
HOTELS (4.16%)
Patriot American Hospitality, Inc. ........... 2,700 $ 65
HOLDING & OTHER INVESTMENT OFFICES (91.48%)
APARTMENTS (15.89%)
Apartment Investment &
Management Co. - Class A .................. 1,300 51
Avalon Bay Communities, Inc. ................. 295 11
Camden Property Trust ........................ 500 15
Equity Residential Properties Trust .......... 1,400 66
Merry Land & Investment
Company, Inc. ............................. 1,900 40
Post Properties, Inc. ........................ 600 23
Security Capital Atlantic
Incorporated .............................. 1,900 42
DIVERSIFIED (7.17%)
Glenborough Realty Trust, Inc. ............... 1,400 37
Liberty Property Trust ....................... 1,100 28
National Golf Properties, Inc. ............... 1,400 42
Reckson Services Industries, Inc. ............ 400 1
Spieker Properties, Inc. ..................... 100 4
HOTELS (11.72%)
FelCor Suite Hotels, Inc. .................... 1,200 38
Starwood Hotels & Resorts .................... 3,000 145
MANUFACTURED HOMES (1.99%)
Manufactured Home
Communities, Inc. ......................... 1,300 31
OFFICE PROPERTY (29.27%)
Arden Realty, Inc. ........................... 2,500 65
Brandywine Realty Trust ...................... 1,100 25
CarrAmerica Realty Corporation ............... 2,200 62
Cousins Properties, Inc. ..................... 1,800 54
Crescent Real Estate Equities
Company ................................... 2,800 94
Equity Office PropertiesTrust ................ 4,100 116
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
OFFICE PROPERTY (CONTINUED)
Reckson Associates Realty
Corporation ............................... 1,300 $ 31
Tower Realty Trust, Inc. ..................... 300 7
TriNet Corporate Realty Trust, Inc. .......... 100 3
REGIONAL MALL (9.48%)
CBL & Associates Properties, Inc. ............ 1,800 44
Simon DeBartolo Group, Inc. .................. 2,600 85
The Macerich Company ......................... 200 6
Urban Shopping Centers, Inc. ................. 400 13
SHOPPING CENTER (10.83%)
Burnham Pacific Properties, Inc. ............. 2,100 30
Developers Diversified Realty
Corporation ............................... 300 12
Excel Realty Trust, Inc. ..................... 800 23
IRT Property Company ......................... 2,000 22
JP Realty, Inc. .............................. 300 7
Vornado Realty Trust ......................... 1,900 75
STORAGE (2.31%)
Public Storage, Inc. ......................... 1,300 36
WAREHOUSE (2.82%)
Weeks Corporation ............................ 1,400 44
REAL ESTATE (0.45%)
OFFICE PROPERTY (0.45%)
SL Green Realty Corp. ........................ 300 7
-------
Total Common Stocks
(cost: $ 1,539)........................................ 1,500
-------
Total Investment Securities
(cost: $ 1,539)........................................ $ 1,500
=======
SUMMARY
Investments, at market value ................. 96.09% $ 1,500
Other assets in
excess of liabilities ..................... 3.91% 61
----- -------
Net assets ................................... 100.00% $ 1,561
====== =======
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 85
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30,1998
All amounts (except per share amounts) in thousands
(unaudited)
---------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ................... $ 0 $ 126,450
========= =========
Investments in securities, at market value ........... $ 0 $ 129,298
Short-term securities, at amortized cost ............. 145,639 9,497
Cash ................................................. 2 187
Foreign cash ......................................... 0 0
Cash collateral for securities on loan ............... 0 28,794
Receivables:
Securities sold ..................................... 0 0
Interest ............................................ 688 2,043
Dividends ........................................... 0 0
Dividend reclaims receivable ........................ 0 0
Foreign currency contracts .......................... 0 0
Other ............................................... 0 0
--------- ---------
Total assets ....................................... 146,329 169,819
--------- ---------
LIABILITIES:
Securities purchased ................................. 0 0
Accounts payable and accrued liabilities:
Investment advisory fees ............................ 57 55
Due to foreign sub-custodian ........................ 0 0
Dividends to shareholders ........................... 745 0
Deposits for securities on loan ..................... 0 28,794
Foreign currency contracts .......................... 0 0
Other fees .......................................... 7 161
--------- ---------
Total liabilities .................................. 809 29,010
--------- ---------
Net assets ........................................ $ 145,520 $ 140,809
========= =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ...................... 225,000 25,000
========= =========
Capital stock ($ .01 par value) ...................... $ 1,455 $ 122
Additional paid-in-capital ........................... 144,065 139,005
Accumulated undistributed (distributions in excess of)
net investment income (loss) ........................ 0 3,817
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ....................... 0 (4,983)
Net unrealized appreciation (depreciation) on:
Investment securities ............................... 0 2,848
Foreign currency transactions ....................... 0 0
Futures contracts ................................... 0 0
--------- ---------
Net assets applicable to outstanding shares of capital $ 145,520 $ 140,809
========= =========
Shares outstanding at June 30, 1998 .................. 145,520 12,170
========= =========
Net asset value and offering price per share ......... $ 1.00 $ 11.57
========= =========
<CAPTION>
STRATEGIC
TOTAL
GROWTH GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ................... $ 1,289,418 $ 749,871 $ 460,598
=========== =========== ===========
Investments in securities, at market value ........... $ 2,381,640 $ 1,054,722 $ 580,467
Short-term securities, at amortized cost ............. 88,535 28,100 1,417
Cash ................................................. 110 63 0
Foreign cash ......................................... 0 12,097 0
Cash collateral for securities on loan ............... 140,858 89,410 79,682
Receivables:
Securities sold ..................................... 2,222 12,061 0
Interest ............................................ 919 420 3,862
Dividends ........................................... 821 758 478
Dividend reclaims receivable ........................ 18 711 2
Foreign currency contracts .......................... 92 3,289 0
Other ............................................... 0 0 0
----------- ----------- -----------
Total assets ....................................... 2,615,215 1,201,631 665,908
----------- ----------- -----------
LIABILITIES:
Securities purchased ................................. 0 58,259 0
Accounts payable and accrued liabilities:
Investment advisory fees ............................ 1,537 708 403
Due to foreign sub-custodian ........................ 0 0 0
Dividends to shareholders ........................... 0 0 0
Deposits for securities on loan ..................... 140,858 89,410 79,682
Foreign currency contracts .......................... 1,496 3,558 0
Other fees .......................................... 962 505 391
----------- ----------- -----------
Total liabilities .................................. 144,853 152,440 80,476
----------- ----------- -----------
Net assets ........................................ $ 2,470,362 $ 1,049,191 $ 585,432
=========== =========== ===========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ...................... 125,000 100,000 100,000
=========== =========== ===========
Capital stock ($ .01 par value) ...................... $ 498 $ 430 $ 355
Additional paid-in-capital ........................... 1,350,116 709,022 454,257
Accumulated undistributed (distributions in excess of)
net investment income (loss) ........................ 3,939 3,507 6,534
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ....................... 24,990 32,012 4,417
Net unrealized appreciation (depreciation) on:
Investment securities ............................... 1,092,222 304,851 119,869
Foreign currency transactions ....................... (1,403) (631) 0
Futures contracts ................................... 0 0 0
----------- ----------- -----------
Net assets applicable to outstanding shares of capital $ 2,470,362 $ 1,049,191 $ 585,432
=========== =========== ===========
Shares outstanding at June 30, 1998 .................. 49,782 42,987 35,489
=========== =========== ===========
Net asset value and offering price per share ......... $ 49.62 $ 24.41 $ 16.50
=========== =========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
86 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30,1998
All amounts (except per share amounts) in thousands
(unaudited)
---------------------------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE
GROWTH GROWTH
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ................... $ 455,675 $ 302,951
========= =========
Investments in securities, at market value ........... $ 694,301 $ 433,561
Short-term securities, at amortized cost ............. 39,476 21,348
Cash ................................................. 15 11
Foreign cash ......................................... 0 0
Cash collateral for securities on loan ............... 148,825 83,370
Receivables:
Securities sold ..................................... 6,078 5,355
Interest ............................................ 639 343
Dividends ........................................... 173 116
Dividend reclaims receivable ........................ 8 2
Foreign currency contracts .......................... 0 0
Other ............................................... 0 0
--------- ---------
Total assets ....................................... 889,515 544,106
--------- ---------
LIABILITIES:
Securities purchased ................................. 1,851 6,562
Accounts payable and accrued liabilities:
Investment advisory fees ............................ 485 291
Due to foreign sub-custodian ........................ 0 0
Dividends to shareholders ........................... 0 0
Deposits for securities on loan ..................... 148,825 83,370
Foreign currency contracts .......................... 0 0
Other fees .......................................... 634 348
--------- ---------
Total liabilities .................................. 151,795 90,571
--------- ---------
Net assets ........................................ $ 737,720 $ 453,535
========= =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ...................... 100,000 75,000
========= =========
Capital stock ($ .01 par value) ...................... $ 296 $ 226
Additional paid-in-capital ........................... 452,520 306,541
Accumulated undistributed (distributions in excess of)
net investment income (loss) ........................ (1,110) (1,049)
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ....................... 47,388 17,207
Net unrealized appreciation (depreciation) on:
Investment securities ............................... 238,626 130,610
Foreign currency transactions ....................... 0 0
Futures contracts ................................... 0 0
--------- ---------
Net assets applicable to outstanding shares of capital $ 737,720 $ 453,535
========= =========
Shares outstanding at June 30, 1998 .................. 29,628 22,630
========= =========
Net asset value and offering price per share ......... $ 24.90 $ 20.04
========= =========
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ................... $ 74,024 $ 75,061 $ 281,188
========= ========= =========
Investments in securities, at market value ........... $ 83,180 $ 77,525 $ 312,808
Short-term securities, at amortized cost ............. 0 3,037 25,246
Cash ................................................. 3,629 0 10,628
Foreign cash ......................................... 0 0 0
Cash collateral for securities on loan ............... 14,175 13,891 40,578
Receivables:
Securities sold ..................................... 1,233 0 238
Interest ............................................ 481 228 2,566
Dividends ........................................... 180 350 244
Dividend reclaims receivable ........................ 3 0 0
Foreign currency contracts .......................... 0 0 0
Other ............................................... 0 0 0
--------- --------- ---------
Total assets ....................................... 102,881 95,031 392,308
--------- --------- ---------
LIABILITIES:
Securities purchased ................................. 14 0 351
Accounts payable and accrued liabilities:
Investment advisory fees ............................ 61 52 242
Due to foreign sub-custodian ........................ 0 0 0
Dividends to shareholders ........................... 0 0 0
Deposits for securities on loan ..................... 14,175 13,891 40,578
Foreign currency contracts .......................... 0 0 0
Other fees .......................................... 77 80 213
--------- --------- ---------
Total liabilities .................................. 14,327 14,023 41,384
--------- --------- ---------
Net assets ........................................ $ 88,554 $ 81,008 $ 350,924
========= ========= =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ...................... 75,000 75,000 75,000
========= ========= =========
Capital stock ($ .01 par value) ...................... $ 71 $ 65 $ 246
Additional paid-in-capital ........................... 78,152 75,420 301,981
Accumulated undistributed (distributions in excess of)
net investment income (loss) ........................ 1,431 1,665 4,748
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ....................... (256) 1,394 12,329
Net unrealized appreciation (depreciation) on:
Investment securities ............................... 9,156 2,464 31,620
Foreign currency transactions ....................... 0 0 0
Futures contracts ................................... 0 0 0
--------- --------- ---------
Net assets applicable to outstanding shares of capital $ 88,554 $ 81,008 $ 350,924
========= ========= =========
Shares outstanding at June 30, 1998 .................. 7,110 6,514 24,649
========= ========= =========
Net asset value and offering price per share ......... $ 12.46 $ 12.44 $ 14.24
========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 87
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30,1998
All amounts (except per share amounts) in thousands
(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 ................... $ 69,804 $ 11,265 $158,665 $ 27,386 $ 60,554
======== ======== ======== ======== ========
Investments in securities, at market value ........... $ 63,348 $ 11,946 $187,364 $ 30,433 $ 66,235
Short-term securities, at amortized cost ............. 0 0 18,045 0 0
Cash ................................................. 4,608 1,584 31 3,034 3,664
Foreign cash ......................................... 0 7 0 211 0
Cash collateral for securities on loan ............... 10,483 0 22,405 0 0
Receivables:
Securities sold ..................................... 111 0 0 47 23
Interest ............................................ 64 50 59 10 22
Dividends ........................................... 43 5 205 46 65
Dividend reclaims receivable ........................ 0 3 4 40 2
Foreign currency contracts .......................... 0 0 0 59 0
Other ............................................... 0 0 0 0 0
-------- -------- -------- -------- --------
Total assets ....................................... 78,657 13,595 228,113 33,880 70,011
-------- -------- -------- -------- --------
LIABILITIES:
Securities purchased ................................. 0 0 0 1,174 40
Accounts payable and accrued liabilities:
Investment advisory fees ............................ 47 9 143 27 46
Due to foreign sub-custodian ........................ 0 0 0 0 1
Dividends to shareholders ........................... 0 0 0 0 0
Deposits for securities on loan ..................... 10,483 0 22,405 0 0
Foreign currency contracts .......................... 0 0 0 0 0
Other fees .......................................... 53 5 68 13 25
-------- -------- -------- -------- --------
Total liabilities .................................. 10,583 14 22,616 1,214 112
-------- -------- -------- -------- --------
Net assets ........................................ $ 68,074 $ 13,581 $205,497 $ 32,666 $ 69,899
======== ======== ======== ======== ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ...................... 75,000 75,000 75,000 75,000 75,000
======== ======== ======== ======== ========
Capital stock ($ .01 par value) ...................... $ 48 $ 12 $ 140 $ 26 $ 51
Additional paid-in-capital ........................... 66,202 12,442 172,518 29,300 61,402
Accumulated undistributed (distributions in excess of)
net investment income (loss) ........................ 100 66 729 149 226
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ....................... 8,180 380 3,411 98 2,522
Net unrealized appreciation (depreciation) on:
Investment securities ............................... (6,456) 681 28,699 3,047 5,681
Foreign currency transactions ....................... 0 0 0 46 0
Futures contracts ................................... 0 0 0 0 17
-------- -------- -------- -------- --------
Net assets applicable to outstanding shares of capital $ 68,074 $ 13,581 $205,497 $ 32,666 $ 69,899
======== ======== ======== ======== ========
Shares outstanding at June 30, 1998 .................. 4,807 1,192 13,958 2,593 5,046
======== ======== ======== ======== ========
Net asset value and offering price per share ......... $ 14.16 $ 11.40 $ 14.72 $ 12.60 $ 13.85
======== ======== ======== ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
88 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At June 30,1998
All amounts (except per share amounts) in thousands
(unaudited)
---------------------------------------------------
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
PORTFOLIO PORTFOLIO
ASSETS:
Investments in securities, at cost ............ $ 15,248 $ 1,539
========= =======
Investments in securities, at market value .... $ 14,260 $ 1,500
Short-term securities, at amortized cost ...... 0 0
Cash .......................................... 1,250 53
Foreign cash .................................. 11 0
Cash collateral for securities on loan ........ 0 0
Receivables:
Securities sold .............................. 0 0
Interest ..................................... 9 0
Dividends .................................... 0 9
Dividend reclaims receivable ................. 0 0
Foreign currency contracts ................... 0 0
Other ........................................ 0 0
--------- -------
Total assets ................................ 15,530 1,562
--------- -------
LIABILITIES:
Securities purchased .......................... 0 0
Accounts payable and accrued liabilities:
Investment advisory fees ..................... 11 1
Due to foreign sub-custodian ................. 0 0
Dividends to shareholders .................... 0 0
Deposits for securities on loan .............. 0 0
Foreign currency contracts ................... 0 0
Other fees ................................... 3 0
--------- -------
Total liabilities ........................... 14 1
--------- -------
Net assets ................................. $ 15,516 $ 1,561
========= =======
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............... 75,000 75,000
========= =======
Capital stock ($ .01 par value)................ $ 16 $ 2
Additional paid-in-capital .................... 16,424 1,585
Accumulated undistributed (distributions in
excess of net investment income (loss) ....... 69 13
Accumulated undistributed net realized gain
(loss)on investment securities, futures
contracts and foreign currency transactions .. (5) 0
Net unrealized appreciation (depreciation) on:
Investment securities ........................ (988) (39)
Foreign currency transactions ................ 0 0
Futures contracts ............................ 0 0
--------- -------
Net assets applicable to outstanding shares of
capital....................................... $ 15,516 $ 1,561
========= =======
Shares outstanding at June 30, 1998 ........... 1,618 160
========= =======
Net asset value and offering price per share .. $ 9.59 $ 9.79
========= =======
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 89
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $3,787 $4,184
Dividends ............................................................. 0 0
Foreign tax withheld .................................................. 0 0
------ ------
Total investment income ............................................. 3,787 4,184
------ ------
EXPENSES:
Investment advisory fees .............................................. 265 300
Printing and shareholder reports ...................................... 9 25
Custody fees .......................................................... 20 18
Administrative service fees ........................................... 3 9
Legal fees ............................................................ 1 2
Auditing and accounting fees .......................................... 3 3
Directors fees ........................................................ 2 0
Registration fees ..................................................... 0 0
Other fees ............................................................ 2 10
------ ------
Total expenses ...................................................... 305 367
Less:
Advisory fee waiver and expense reimbursement ........................ 0 0
Fees paid indirectly ................................................. 0 0
------ ------
Net expenses ........................................................ 305 367
------ ------
Net investment income (loss) .......................................... 3,482 3,817
------ ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 0 1,295
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
------ ------
Total net realized gain (loss) ...................................... 0 1,295
------ ------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ 0 88
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
------ ------
Total change in unrealized appreciation (depreciation) .............. 0 88
------ ------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 0 1,383
------ ------
Net increase (decrease) in net assets resulting from operations ..... $3,482 $5,200
====== ======
<CAPTION>
STRATEGIC
TOTAL
GROWTH GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 3,214 $ 612 $ 5,653
Dividends ............................................................. 8,333 7,823 3,536
Foreign tax withheld .................................................. (315) (1,006) (5)
--------- --------- ---------
Total investment income ............................................. 11,232 7,429 9,184
--------- --------- ---------
EXPENSES:
Investment advisory fees .............................................. 8,369 3,648 2,244
Printing and shareholder reports ...................................... 207 141 69
Custody fees .......................................................... 155 465 43
Administrative service fees ........................................... 73 50 24
Legal fees ............................................................ 18 13 6
Auditing and accounting fees .......................................... 11 7 4
Directors fees ........................................................ 3 2 1
Registration fees ..................................................... 1 1 0
Other fees ............................................................ 77 8 28
--------- --------- ---------
Total expenses ...................................................... 8,914 4,335 2,419
Less:
Advisory fee waiver and expense reimbursement ........................ 0 0 0
Fees paid indirectly ................................................. 0 0 0
--------- --------- ---------
Net expenses ........................................................ 8,914 4,335 2,419
--------- --------- ---------
Net investment income (loss) .......................................... 2,318 3,094 6,765
--------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 26,770 38,881 7,153
Futures contracts .................................................... 0 0 0
Foreign currency transactions ........................................ (1,675) (312) 0
--------- --------- ---------
Total net realized gain (loss) ...................................... 25,095 38,569 7,153
--------- --------- ---------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ 627,827 186,098 21,565
Futures contracts .................................................... 0 0 0
Foreign currency transactions ........................................ 136 975 0
--------- --------- ---------
Total change in unrealized appreciation (depreciation) .............. 627,963 187,073 21,565
--------- --------- ---------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 653,058 225,642 28,718
--------- --------- ---------
Net increase (decrease) in net assets resulting from operations ..... $ 655,376 $ 228,736 $ 35,483
========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
90 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE
GROWTH GROWTH
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 1,058 $ 311
Dividends ............................................................. 738 1,076
Foreign tax withheld .................................................. (3) (15)
--------- ---------
Total investment income ............................................. 1,793 1,372
--------- ---------
EXPENSES:
Investment advisory fees .............................................. 2,602 1,519
Printing and shareholder reports ...................................... 136 104
Custody fees .......................................................... 62 32
Administrative service fees ........................................... 48 37
Legal fees ............................................................ 12 9
Auditing and accounting fees .......................................... 5 3
Directors fees ........................................................ 2 2
Registration fees ..................................................... 1 1
Other fees ............................................................ 50 39
--------- ---------
Total expenses ...................................................... 2,918 1,746
Less:
Advisory fee waiver and expense reimbursement ........................ 0 0
Fees paid indirectly ................................................. 0 1
--------- ---------
Net expenses ........................................................ 2,918 1,745
--------- ---------
Net investment income (loss) .......................................... (1,125) (373)
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 47,991 17,206
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
--------- ---------
Total net realized gain (loss) ...................................... 47,991 17,206
--------- ---------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ 85,870 77,067
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
--------- ---------
Total change in unrealized appreciation (depreciation) .............. 85,870 77,067
--------- ---------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 133,861 94,273
--------- ---------
Net increase (decrease) in net assets resulting from operations ..... $ 132,736 $ 93,900
========= =========
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 749 $ 495 $ 4,447
Dividends ............................................................. 760 1,371 1,641
Foreign tax withheld .................................................. (5) (3) (7)
-------- -------- --------
Total investment income ............................................. 1,504 1,863 6,081
-------- -------- --------
EXPENSES:
Investment advisory fees .............................................. 331 273 1,314
Printing and shareholder reports ...................................... 15 17 36
Custody fees .......................................................... 18 13 32
Administrative service fees ........................................... 5 6 13
Legal fees ............................................................ 1 1 3
Auditing and accounting fees .......................................... 3 2 3
Directors fees ........................................................ 0 0 1
Registration fees ..................................................... 0 0 0
Other fees ............................................................ 0 10 10
-------- -------- --------
Total expenses ...................................................... 373 322 1,412
Less:
Advisory fee waiver and expense reimbursement ........................ 0 0 0
Fees paid indirectly ................................................. 0 0 0
-------- -------- --------
Net expenses ........................................................ 373 322 1,412
-------- -------- --------
Net investment income (loss) .......................................... 1,131 1,541 4,669
-------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 458 1,453 12,372
Futures contracts .................................................... 0 0 0
Foreign currency transactions ........................................ 0 0 0
-------- -------- --------
Total net realized gain (loss) ...................................... 458 1,453 12,372
-------- -------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ 1,729 (2,024) 4,944
Futures contracts .................................................... 0 0 0
Foreign currency transactions ........................................ 0 0 0
-------- -------- --------
Total change in unrealized appreciation (depreciation) .............. 1,729 (2,024) 4,944
-------- -------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 2,187 (571) 17,316
-------- -------- --------
Net increase (decrease) in net assets resulting from operations ..... $ 3,318 $ 970 $ 21,985
======== ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 91
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GLOBAL
GROWTH SECTOR
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 188 $ 140
Dividends ............................................................. 238 50
Foreign tax withheld .................................................. 0 (4)
------- -------
Total investment income ............................................. 426 186
------- -------
EXPENSES:
Investment advisory fees .............................................. 264 51
Printing and shareholder reports ...................................... 19 2
Custody fees .......................................................... 24 24
Administrative service fees ........................................... 7 1
Legal fees ............................................................ 2 0
Auditing and accounting fees .......................................... 2 1
Directors fees ........................................................ 0 0
Registration fees ..................................................... 0 0
Other fees ............................................................ 8 4
------- -------
Total expenses ...................................................... 326 83
Less:
Advisory fee waiver and expense reimbursement ........................ 0 0
Fees paid indirectly ................................................. 0 0
------- -------
Net expenses ........................................................ 326 83
------- -------
Net investment income (loss) .......................................... 100 103
------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 8,408 393
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 (1)
------- -------
Total net realized gain (loss) ...................................... 8,408 392
------- -------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ (5,868) 782
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
------- -------
Total change in unrealized appreciation (depreciation) .............. (5,868) 782
------- -------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 2,540 1,174
------- -------
Net increase (decrease) in net assets resulting from operations ..... $ 2,640 $ 1,277
======= =======
<CAPTION>
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 478 $ 37 $ 121
Dividends ............................................................. 1,093 351 425
Foreign tax withheld .................................................. (6) (43) (4)
-------- -------- --------
Total investment income ............................................. 1,565 345 542
-------- -------- --------
EXPENSES:
Investment advisory fees .............................................. 772 122 232
Printing and shareholder reports ...................................... 26 5 7
Custody fees .......................................................... 18 109 66
Administrative service fees ........................................... 9 2 3
Legal fees ............................................................ 2 0 1
Auditing and accounting fees .......................................... 2 2 2
Directors fees ........................................................ 1 0 0
Registration fees ..................................................... 0 0 0
Other fees ............................................................ 6 2 4
-------- -------- --------
Total expenses ...................................................... 836 242 315
Less:
Advisory fee waiver and expense reimbursement ........................ 0 58 0
Fees paid indirectly ................................................. 0 0 1
-------- -------- --------
Net expenses ........................................................ 836 184 314
-------- -------- --------
Net investment income (loss) .......................................... 729 161 228
-------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ 3,411 471 2,140
Futures contracts .................................................... 0 0 542
Foreign currency transactions ........................................ 0 49 0
-------- -------- --------
Total net realized gain (loss) ...................................... 3,411 520 2,682
-------- -------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ 6,097 2,882 4,577
Futures contracts .................................................... 0 0 (2)
Foreign currency transactions ........................................ 0 42 0
-------- -------- --------
Total change in unrealized appreciation (depreciation) .............. 6,097 2,924 4,575
-------- -------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ 9,508 3,444 7,257
-------- -------- --------
Net increase (decrease) in net assets resulting from operations ..... $ 10,237 $ 3,605 $ 7,485
======== ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
92 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
PORTFOLIO (a) PORTFOLIO (b)
<S> <C> <C>
INVESTMENT INCOME:
Interest .............................................................. $ 102 $ 1
Dividends ............................................................. 30 14
Foreign tax withheld .................................................. (2) 0
----- -----
Total investment income ............................................. 130 15
----- -----
EXPENSES:
Investment advisory fees .............................................. 49 2
Printing and shareholder reports ...................................... 1 0
Custody fees .......................................................... 15 4
Administrative service fees ........................................... 0 0
Legal fees ............................................................ 0 0
Auditing and accounting fees .......................................... 2 1
Directors fees ........................................................ 0 0
Registration fees ..................................................... 0 0
Other fees ............................................................ 1 0
----- -----
Total expenses ...................................................... 68 7
Less:
Advisory fee waiver and expense reimbursement ........................ 7 5
Fees paid indirectly ................................................. 0 0
----- -----
Net expenses ........................................................ 61 2
----- -----
Net investment income (loss) .......................................... 69 13
----- -----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................................ (4) 0
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ (1) 0
----- -----
Total net realized gain (loss) ...................................... (5) 0
----- -----
Change in unrealized appreciation (depreciation) on:
Investment securities ................................................ (988) (39)
Futures contracts .................................................... 0 0
Foreign currency transactions ........................................ 0 0
----- -----
Total change in unrealized appreciation (depreciation) .............. (988) (39)
----- -----
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions ................................................ (993) (39)
----- -----
Net increase (decrease) in net assets resulting from operations ..... $(924) $ (26)
===== =====
<FN>
- -----------
(a) The inception date of this Portfolio was January 2, 1998.
(b) The inception date of this Portfolio was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 93
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
-------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
---------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 3,482 $ 6,679 $ 3,817 $ 5,746
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 0 0 1,295 (343)
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 0 0 88 3,049
--------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations ............................... 3,482 6,679 5,200 8,452
--------- --------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (3,482) (6,679) (188) (5,720)
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 ........................... (3,482) (6,679) (188) (5,720)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 143,766 265,418 28,337 53,537
Dividends and distributions reinvested ......... 3,482 6,679 188 5,720
Cost of shares redeemed ........................ (121,436) (274,503) (22,382) (28,094)
--------- --------- --------- ---------
Increase (decrease) in net assets from capital
share transactions ........................... 25,812 (2,406) 6,143 31,163
--------- --------- --------- ---------
Net increase (decrease) in net assets .......... 25,812 (2,406) 11,155 33,895
NET ASSETS:
Beginning of period ............................ 119,708 122,114 129,654 95,759
--------- --------- --------- ---------
End of period .................................. $ 145,520 $ 119,708 $ 140,809 $ 129,654
========= ========= ========= =========
Undistributed (distributions in excess of) net
investment income ............................ $ 0 $ 0 $ 3,817 $ 188
========= ========= ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 119,708 122,114 11,637 8,943
--------- --------- --------- ---------
Shares issued .................................. 143,766 265,418 2,488 4,738
Shares issued - reinvestment of dividends
and distributions ............................. 3,482 6,679 16 518
Shares redeemed ................................ (121,436) (274,503) (1,971) (2,562)
--------- --------- --------- ---------
Increase (decrease) in shares outstanding ...... 25,812 (2,406) 533 2,694
--------- --------- --------- ---------
Shares outstanding - end of period ............. 145,520 119,708 12,170 11,637
========= ========= ========= =========
<CAPTION>
GROWTH
PORTFOLIO
----------------------------
JUNE 30, DECEMBER 31,
1998 1997
----------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 2,318 $ 13,661
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 25,095 192,805
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 627,963 61,839
----------- -----------
Net increase (decrease) in net assets resulting
from operations ............................... 655,376 268,305
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (1,582) (12,508)
In excess of net investment income ............. 0 0
Net realized gains ............................. (20,376) (183,828)
In excess of net realized gains ................ 0 0
----------- -----------
Total distributions ........................... (21,958) (196,336)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 119,613 211,999
Dividends and distributions reinvested ......... 21,958 196,336
Cost of shares redeemed ........................ (144,080) (168,260)
----------- -----------
Increase (decrease) in net assets from capital
share transactions ........................... (2,509) 240,075
----------- -----------
Net increase (decrease) in net assets .......... 630,909 312,044
NET ASSETS:
Beginning of period ............................ 1,839,453 1,527,409
----------- -----------
End of period .................................. $ 2,470,362 $ 1,839,453
=========== ===========
Undistributed (distributions in excess of) net
investment income ............................ $ 3,939 $ 3,203
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 49,925 43,639
----------- -----------
Shares issued .................................. 2,697 5,508
Shares issued - reinvestment of dividends
and distributions ............................. 490 5,203
Shares redeemed ................................ (3,330) (4,425)
----------- -----------
Increase (decrease) in shares outstanding ...... (143) 6,286
----------- -----------
Shares outstanding - end of period ............. 49,782 49,925
=========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
94 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
GLOBAL
PORTFOLIO
----------------------------
JUNE 30, DECEMBER 31,
1998 1997
----------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 3,094 $ 2,809
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 38,569 82,081
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 187,073 25,087
----------- -----------
Net increase (decrease) in net assets resulting
from operations ............................... 228,736 109,977
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (5,524) (4,928)
In excess of net investment income ............. 0 (39,132)
Net realized gains ............................. 0 (49,141)
In excess of net realized gains ................ 0 0
----------- -----------
Total distributions ........................... (5,524) (93,201)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 78,172 203,595
Dividends and distributions reinvested ......... 5,524 93,201
Cost of shares redeemed ........................ (43,683) (62,426)
----------- -----------
Increase (decrease) in net assets from capital
share transactions ........................... 40,013 234,370
----------- -----------
Net increase (decrease) in net assets .......... 263,225 251,146
NET ASSETS:
Beginning of period ............................ 785,966 534,820
----------- -----------
End of period .................................. $ 1,049,191 $ 785,966
=========== ===========
Undistributed (distributions in excess of) net
investment income ............................ $ 3,507 $ 5,937
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 41,272 29,523
----------- -----------
Shares issued .................................. 3,478 10,065
Shares issued - reinvestment of dividends
and distributions ............................. 243 4,695
Shares redeemed ................................ (2,006) (3,011)
----------- -----------
Increase (decrease) in shares outstanding ...... 1,715 11,749
----------- -----------
Shares outstanding - end of period ............. 42,987 41,272
=========== ===========
<CAPTION>
STRATEGIC
TOTAL RETURN EMERGING GROWTH
PORTFOLIO PORTFOLIO
-------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------- ------------ ---------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 6,765 $ 11,181 $ (1,125) $ (1,350)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 7,153 34,138 47,991 52,368
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 21,565 44,737 85,870 46,598
--------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations ............................... 35,483 90,056 132,736 97,616
--------- --------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (1,506) (11,471) 0 0
In excess of net investment income ............. 0 (919) 0 0
Net realized gains ............................. (3,932) (31,748) (1,201) (54,441)
In excess of net realized gains ................ 0 0 0 0
--------- --------- --------- ---------
Total distributions ........................... (5,438) (44,138) (1,201) (54,441)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 39,243 75,270 53,794 130,853
Dividends and distributions reinvested ......... 5,438 44,138 1,201 54,441
Cost of shares redeemed ........................ (15,871) (28,890) (40,813) (67,920)
--------- --------- --------- ---------
Increase (decrease) in net assets from capital
share transactions ........................... 28,810 90,518 14,182 117,374
--------- --------- --------- ---------
Net increase (decrease) in net assets .......... 58,855 136,436 145,717 160,549
NET ASSETS:
Beginning of period ............................ 526,577 390,141 592,003 431,454
--------- --------- --------- ---------
End of period .................................. $ 585,432 $ 526,577 $ 737,720 $ 592,003
========= ========= ========= =========
Undistributed (distributions in excess of) net
investment income ............................ $ 6,534 $ 1,275 $ (1,110) $ 15
========= ========= ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 33,702 27,923 29,066 23,371
--------- --------- --------- ---------
Shares issued .................................. 2,416 4,860 2,365 6,410
Shares issued - reinvestment of dividends
and distributions ............................. 340 2,768 53 2,639
Shares redeemed ................................ (969) (1,849) (1,856) (3,354)
--------- --------- --------- ---------
Increase (decrease) in shares outstanding ...... 1,787 5,779 562 5,695
--------- --------- --------- ---------
Shares outstanding - end of period ............. 35,489 33,702 29,628 29,066
========= ========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 95
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
--------------------------
JUNE 30, DECEMBER 31,
1998 1997
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ (373) $ (166)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 17,206 36,183
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 77,067 20,413
--------- ---------
Net increase (decrease) in net assets resulting
from operations ............................... 93,900 56,430
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (133) 0
In excess of net investment income ............. (1,049) (8,640)
Net realized gains ............................. (6,646) (21,613)
In excess of net realized gains ................ 0 0
--------- ---------
Total distributions ........................... (7,828) (30,253)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 48,594 97,484
Dividends and distributions reinvested ......... 7,828 30,253
Cost of shares redeemed ........................ (25,125) (38,300)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ........................... 31,297 89,437
--------- ---------
Net increase (decrease) in net assets .......... 117,369 115,614
NET ASSETS:
Beginning of period ............................ 336,166 220,552
--------- ---------
End of period .................................. $ 453,535 $ 336,166
========= =========
Undistributed (distributions in excess of) net
investment income ............................ $ (1,049) $ 506
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 20,952 15,556
--------- ---------
Shares issued .................................. 2,685 5,967
Shares issued - reinvestment of dividends
and distributions ............................. 430 1,837
Shares redeemed ................................ (1,437) (2,408)
--------- ---------
Increase (decrease) in shares outstanding ...... 1,678 5,396
--------- ---------
Shares outstanding - end of period ............. 22,630 20,952
========= =========
<CAPTION>
BALANCED GROWTH & INCOME
PORTFOLIO PORTFOLIO
------------------------ ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
--------- ------------ -------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 1,131 $ 1,918 $ 1,541 $ 1,747
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 458 5,106 1,453 7,812
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 1,729 2,540 (2,024) 1,006
-------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations ............................... 3,318 9,564 970 10,565
-------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (297) (2,040) (1,430) (1,900)
In excess of net investment income ............. 0 (1,739) 0 (2,580)
Net realized gains ............................. 0 (3,594) (285) (3,981)
In excess of net realized gains ................ (90) 0 0 0
-------- -------- -------- --------
Total distributions ........................... (387) (7,373) (1,715) (8,461)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 16,660 20,555 30,357 20,687
Dividends and distributions reinvested ......... 387 7,373 1,715 8,461
Cost of shares redeemed ........................ (4,875) (5,999) (10,811) (8,875)
-------- -------- -------- --------
Increase (decrease) in net assets from capital
share transactions ........................... 12,172 21,929 21,261 20,273
-------- -------- -------- --------
Net increase (decrease) in net assets .......... 15,103 24,120 20,516 22,377
NET ASSETS:
Beginning of period ............................ 73,451 49,331 60,492 38,115
-------- -------- -------- --------
End of period .................................. $ 88,554 $ 73,451 $ 81,008 $ 60,492
======== ======== ======== ========
Undistributed (distributions in excess of) net
investment income ............................ $ 1,431 $ 597 $ 1,665 $ 1,554
======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 6,116 4,329 4,817 3,240
-------- -------- -------- --------
Shares issued .................................. 1,348 1,673 2,414 1,630
Shares issued - reinvestment of dividends
and distributions ............................. 32 603 141 665
Shares redeemed ................................ (386) (489) (858) (718)
-------- -------- -------- --------
Increase (decrease) in shares outstanding ...... 994 1,787 1,697 1,577
-------- -------- -------- --------
Shares outstanding - end of period ............. 7,110 6,116 6,514 4,817
======== ======== ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
96 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION
PORTFOLIO
--------------------------
JUNE 30, DECEMBER 31,
1998 1997
---------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 4,669 $ 6,864
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 12,372 21,974
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 4,944 10,442
--------- ---------
Net increase (decrease) in net assets resulting
from operations ............................... 21,985 39,280
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (769) (7,098)
In excess of net investment income ............. 0 (3,952)
Net realized gains ............................. (7,339) (11,378)
In excess of net realized gains ................ 0 0
--------- ---------
Total distributions ........................... (8,108) (22,428)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 39,400 80,867
Dividends and distributions reinvested ......... 8,108 22,428
Cost of shares redeemed ........................ (13,206) (23,574)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ........................... 34,302 79,721
--------- ---------
Net increase (decrease) in net assets .......... 48,179 96,573
NET ASSETS:
Beginning of period ............................ 302,745 206,172
--------- ---------
End of period .................................. $ 350,924 $ 302,745
========= =========
Undistributed (distributions in excess of) net
investment income ............................ $ 4,748 $ 848
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 22,239 16,349
--------- ---------
Shares issued .................................. 2,751 5,989
Shares issued - reinvestment of dividends
and distributions ............................. 583 1,631
Shares redeemed ................................ (924) (1,730)
--------- ---------
Increase (decrease) in shares outstanding ...... 2,410 5,890
--------- ---------
Shares outstanding - end of period ............. 24,649 22,239
========= =========
<CAPTION>
C.A.S.E. GROWTH GLOBAL SECTOR
PORTFOLIO PORTFOLIO
------------------------ ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
--------- ------------ --------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 100 $ 103 $ 103 $ 135
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 8,408 6,966 392 480
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. (5,868) (2,149) 782 (372)
-------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations ............................... 2,640 4,920 1,277 243
-------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (1,677) (115) (53) (148)
In excess of net investment income ............. 0 (4,867) 0 (442)
Net realized gains ............................. (412) (438) 0 (50)
In excess of net realized gains ................ 0 0 0 0
-------- -------- -------- --------
Total distributions ........................... (2,089) (5,420) (53) (640)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 12,670 42,917 1,613 10,666
Dividends and distributions reinvested ......... 2,089 5,420 53 640
Cost of shares redeemed ........................ (7,832) (13,801) (2,030) (5,174)
-------- -------- -------- --------
Increase (decrease) in net assets from capital
share transactions ........................... 6,927 34,536 (364) 6,132
-------- -------- -------- --------
Net increase (decrease) in net assets .......... 7,478 34,036 860 5,735
NET ASSETS:
Beginning of period ............................ 60,596 26,560 12,721 6,986
-------- -------- -------- --------
End of period .................................. $ 68,074 $ 60,596 $ 13,581 $ 12,721
======== ======== ======== ========
Undistributed (distributions in excess of) net
investment income ............................ $ 100 $ 1,677 $ 66 $ 16
======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 4,325 1,979 1,227 662
-------- -------- -------- --------
Shares issued .................................. 860 2,855 145 952
Shares issued - reinvestment of dividends
and distributions ............................. 154 390 5 61
Shares redeemed ................................ (532) (899) (185) (448)
-------- -------- -------- --------
Increase (decrease) in shares outstanding ...... 482 2,346 (35) 565
-------- -------- -------- --------
Shares outstanding - end of period ............. 4,807 4,325 1,192 1,227
======== ======== ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 97
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
PORTFOLIO
-------------------------
JUNE 30, DECEMBER 31,
1998 1997
--------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 729 $ 1,004
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 3,411 1,710
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 6,097 19,277
--------- ---------
Net increase (decrease) in net assets resulting
from operations ............................... 10,237 21,991
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (104) (1,036)
In excess of net investment income ............. 0 (869)
Net realized gains ............................. (446) (296)
In excess of net realized gains ................ 0 0
--------- ---------
Total distributions ........................... (550) (2,201)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 35,119 116,169
Dividends and distributions reinvested ......... 550 2,201
Cost of shares redeemed ........................ (13,294) (14,119)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ........................... 22,375 104,251
--------- ---------
Net increase (decrease) in net assets .......... 32,062 124,041
NET ASSETS:
Beginning of period ............................ 173,435 49,394
--------- ---------
End of period .................................. $ 205,497 $ 173,435
========= =========
Undistributed (distributions in excess of) net
investment income ............................ $ 729 $ 104
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 12,473 4,384
--------- ---------
Shares issued .................................. 2,385 9,039
Shares issued - reinvestment of dividends
and distributions ............................. 39 160
Shares redeemed ................................ (939) (1,110)
--------- ---------
Increase (decrease) in shares outstanding ...... 1,485 8,089
--------- ---------
Shares outstanding - end of period ............. 13,958 12,473
========= =========
<CAPTION>
INTERNATIONAL
EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO
------------------------ -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 (a) 1998 1997 (a)
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 161 $ 20 $ 228 $ 129
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 520 (346) 2,682 1,894
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. 2,924 169 4,575 1,123
-------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations ............................... 3,605 (157) 7,485 3,146
-------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (23) (20) (534) (129)
In excess of net investment income ............. 0 (65) 0 (1,301)
Net realized gains ............................. 0 0 (88) (133)
In excess of net realized gains ................ 0 0 0 0
-------- -------- -------- --------
Total distributions ........................... (23) (85) (622) (1,563)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 13,059 25,394 34,970 54,442
Dividends and distributions reinvested ......... 23 85 622 1,563
Cost of shares redeemed ........................ (3,793) (5,442) (15,507) (14,637)
-------- -------- -------- --------
Increase (decrease) in net assets from capital
share transactions ........................... 9,289 20,037 20,085 41,368
-------- -------- -------- --------
Net increase (decrease) in net assets .......... 12,871 19,795 26,948 42,951
NET ASSETS:
Beginning of period ............................ 19,795 0 42,951 0
-------- -------- -------- --------
End of period .................................. $ 32,666 $ 19,795 $ 69,899 $ 42,951
======== ======== ======== ========
Undistributed (distributions in excess of) net
investment income ............................ $ 149 $ 11 $ 226 $ 532
======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 1,850 0 3,511 0
-------- -------- -------- --------
Shares issued .................................. 1,056 2,346 2,640 4,640
Shares issued - reinvestment of dividends
and distributions ............................. 2 8 47 127
Shares redeemed ................................ (315) (504) (1,152) (1,256)
-------- -------- -------- --------
Increase (decrease) in shares outstanding ...... 743 1,850 1,535 3,511
-------- -------- -------- --------
Shares outstanding - end of period ............. 2,593 1,850 5,046 3,511
======== ======== ======== ========
<FN>
- -----------
(a) The inception date of this Portfolio was January 2, 1997.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
98 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
PORTFOLIO PORTFOLIO
------------ ------------
JUNE 30, JUNE 30,
1998 (a) 1998 (b)
---------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 69 $ 13
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. (5) 0
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ................. (988) (39)
-------- --------
Net increase (decrease) in net assets resulting
from operations ............................... (924) (26)
-------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... 0 0
In excess of net investment income ............. 0 0
Net realized gains ............................. 0 0
In excess of net realized gains ................ 0 0
-------- --------
Total distributions ........................... 0 0
-------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 18,947 1,758
Dividends and distributions reinvested ......... 0 0
Cost of shares redeemed ........................ (2,507) (171)
-------- --------
Increase (decrease) in net assets from capital
share transactions ........................... 16,440 1,587
-------- --------
Net increase (decrease) in net assets .......... 15,516 1,561
NET ASSETS:
Beginning of period ............................ 0 0
-------- --------
End of period .................................. $ 15,516 $ 1,561
======== ========
Undistributed (distributions in excess of) net
investment income ............................ $ 69 $ 13
======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period ....... 0 0
-------- --------
Shares issued .................................. 1,869 178
Shares issued - reinvestment of dividends
and distributions ............................. 0 0
Shares redeemed ................................ (251) (18)
-------- --------
Increase (decrease) in shares outstanding ...... 1,618 160
-------- --------
Shares outstanding - end of period ............. 1,618 160
======== ========
<FN>
- ----------
(a) The inception date of this Portfolio was January 2, 1998.
(b) The inception date of this Portfolio was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 99
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
--------------------------
JUNE 30, DECEMBER 31,
---------- ------------
1998 1997
---------- ----------
<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
--------- ---------
Net 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) ................................................ 2.57% 5.24%
Ratios and supplemental data:
Net assets at end of period (in thousands) .................... $ 145,520 $ 119,708
Ratio of expenses to average net assets (b) ................... 0.47% 0.48%
Ratio of net investment income (loss) to average net assets (b) 5.33% 5.32%
Average commission rate paid per share (a) .................... N/A N/A
Portfolio turnover rate (a) ................................... N/A N/A
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------
DECEMBER 31,
---------------------------------------------------
1996 1995 1994 1993
--------- --------- --------- ---------
<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 0.05 0.04 0.02
Net realized and unrealized gain (loss) on investments ........ 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
Net income (loss) from operations ............................ 0.05 0.05 0.04 0.02
--------- --------- --------- ---------
Distributions:
Dividends from net investment income .......................... (0.05) (0.05) (0.04) (0.02)
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) (0.05) (0.04) (0.02)
--------- --------- --------- ---------
Net asset value, end of period .................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total return (a) ................................................ 5.03% 5.40% 3.44% 2.45%
Ratios and supplemental data:
Net assets at end of period (in thousands) .................... $ 122,114 $ 80,544 $ 93,081 $ 45,782
Ratio of expenses to average net assets (b) ................... 0.52% 0.56% 0.60% 0.66%
Ratio of net investment income (loss) to average net assets (b) 5.03% 5.30% 3.59% 2.41%
Average commission rate paid per share (a) .................... 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,
--------- ------------
1998 1997
--------- ---------
<S> <C> <C>
Net asset value, beginning of period ............................ $ 11.14 $ 10.71
Income from operations:
Net investment income (loss) .................................. 0.32 0.65
Net realized and unrealized gain (loss) on investments ........ 0.13 0.32
--------- ---------
Net income (loss) from operations ............................ 0.45 0.97
--------- ---------
Distributions:
Dividends from net investment income .......................... (0.02) (0.54)
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 .......................................... (0.02) (0.54)
--------- ---------
Net asset value, end of period .................................. $ 11.57 $ 11.14
========= =========
Total return (a) ................................................ 3.99% 9.16%
Ratios and supplemental data:
Net assets at end of period (in thousands) .................... $ 140,809 $ 129,654
Ratio of expenses to average net assets (b) ................... 0.55% 0.64%
Ratio of net investment income (loss) to average net assets (b) 5.67% 5.90%
Average commission rate paid per share (a) .................... N/A N/A
Portfolio turnover rate (a) ................................... 35.96% 213.03%
<CAPTION>
BOND PORTFOLIO
------------------------------------------------
DECEMBER 31,
------------------------------------------------
1996 1995 1994 1993
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 11.35 $ 9.80 $ 11.24 $ 11.18
Income from operations:
Net investment income (loss) ....................................... 0.64 0.69 0.63 0.72
Net realized and unrealized gain (loss) on investments ............. (0.64) 1.55 (1.44) 0.95
-------- -------- ------- --------
Net income (loss) from operations ................................. 0.00 2.24 (0.81) 1.67
-------- -------- ------- --------
Distributions:
Dividends from net investment income ............................... (0.64) (0.69) (0.63) (0.72)
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 (0.89)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00 0.00
-------- -------- ------- --------
Total distributions ............................................... (0.64) (0.69) (0.63) (1.61)
-------- -------- ------- --------
Net asset value, end of period ....................................... $ 10.71 $ 11.35 $ 9.80 $ 11.24
======== ======== ======= ========
Total return (a) ..................................................... 0.14% 22.99% (6.94%) 13.38%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 95,759 $ 96,972 $71,064 $ 90,715
Ratio of expenses to average net assets (b) ........................ 0.64% 0.61% 0.59% 0.64%
Ratio of net investment income (loss) to average net assets (b)..... 5.96% 6.45% 5.94% 5.94%
Average commission rate paid per share (a) ......................... N/A N/A N/A N/A
Portfolio turnover rate (a) ........................................ 187.72% 120.54% 131.73% 149.02%
</TABLE>
The notes to the financial statements are an integral part of this report.
100 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
-------------------------------
JUNE 30, DECEMBER 31,
--------------- ---------------
1998 1997
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 36.84 $ 35.00
Income from operations:
Net investment income (loss) ....................................... 0.05 0.31
Net realized and unrealized gain (loss) on investments ............. 13.18 5.88
----------- -----------
Net income (loss) from operations ................................. 13.23 6.19
----------- -----------
Distributions:
Dividends from net investment income ............................... (0.03) (0.26)
Dividends in excess of net investment income ....................... 0.00 0.00
Distributions from net realized gains on investments ............... (0.42) (4.09)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
----------- -----------
Total distributions ............................................... (0.45) (4.35)
----------- -----------
Net asset value, end of period ....................................... $ 49.62 $ 36.84
=========== ===========
Total return (a) ..................................................... 36.03% 17.54%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 2,470,362 $ 1,839,453
Ratio of expenses to average net assets (b) ........................ 0.83% 0.87%
Ratio of net investment income (loss) to average net assets (b)..... 0.22% 0.80%
Average commission rate paid per share (a) ......................... $ 0.0234 $ 0.0463
Portfolio turnover rate (a) ........................................ 10.21% 85.88%
<CAPTION>
GROWTH PORTFOLIO
----------------------------------------------------------
DECEMBER 31,
----------------------------------------------------------
1996 1995 1994 1993
--------------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 31.66 $ 23.81 $ 26.25 $ 25.83
Income from operations:
Net investment income (loss) ....................................... 0.34 0.26 0.22 0.28
Net realized and unrealized gain (loss) on investments ............. 5.35 10.97 (2.41) 0.79
----------- ----------- ------- ---------
Net income (loss) from operations ................................. 5.69 11.23 (2.19) 1.07
----------- ----------- ------- ---------
Distributions:
Dividends from net investment income ............................... (0.35) (0.24) (0.22) (0.28)
Dividends in excess of net investment income ....................... (0.01) 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (1.99) (3.14) 0.00 (0.37)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 (0.03) 0.00
----------- ----------- ------- ---------
Total distributions ............................................... (2.35) (3.38) (0.25) (0.65)
----------- ----------- ------- ---------
Net asset value, end of period ....................................... $ 35.00 $ 31.66 $ 23.81 $ 26.25
=========== =========== ======= =========
Total return (a) ..................................................... 17.96% 47.12% (8.31%) 3.97%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 1,527,409 $ 1,195,174 $814,383 $ 934,810
Ratio of expenses to average net assets (b) ........................ 0.88% 0.86% 0.84% 0.87%
Ratio of net investment income (loss) to average net assets (b)..... 0.98% 0.90% 0.88% 1.07%
Average commission rate paid per share (a) ......................... $ 0.0493 N/A N/A N/A
Portfolio turnover rate (a) ........................................ 45.21% 130.48% 107.33% 77.91%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL PORTFOLIO
-------------------------------
JUNE 30, DECEMBER 31,
--------------- ---------------
1998 1997
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 19.04 $ 18.12
Income from operations:
Net investment income (loss) ....................................... 0.07 0.08
Net realized and unrealized gain (loss) on investments ............. 5.43 3.32
----------- -----------
Net income (loss) from operations ................................. 5.50 3.40
----------- -----------
Distributions:
Dividends from net investment income ............................... (0.13) (0.13)
Dividends in excess of net investment income ....................... 0.00 (1.01)
Distributions from net realized gains on investments ............... 0.00 (1.34)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
----------- -----------
Total distributions ............................................... (0.13) (2.48)
----------- -----------
Net asset value, end of period ....................................... $ 24.41 $ 19.04
=========== ===========
Total return (a) ..................................................... 28.90% 18.75%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 1,049,191 $ 785,966
Ratio of expenses to average net assets (b) ........................ 0.94% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 0.67% 0.41%
Average commission rate paid per share (a) ......................... $ 0.0059 $ 0.0123
Portfolio turnover rate (a) ........................................ 33.88% 97.54%
<CAPTION>
GLOBAL PORTFOLIO
---------------------------------------------------------
DECEMBER 31,
---------------------------------------------------------
1996 1995 1994 1993
--------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 15.52 $ 13.12 $ 13.62 $ 10.16
Income from operations:
Net investment income (loss) ....................................... 0.08 0.10 0.10 0.04
Net realized and unrealized gain (loss) on investments ............. 4.20 2.91 0.10 3.72
--------- --------- -------- --------
Net income (loss) from operations ................................. 4.28 3.01 0.20 3.76
--------- --------- -------- --------
Distributions:
Dividends from net investment income ............................... (0.04) 0.00 (0.10) (0.04)
Dividends in excess of net investment income ....................... (0.17) 0.00 (0.01) 0.00
Distributions from net realized gains on investments ............... (1.47) (0.61) (0.56) (0.26)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 (0.03) 0.00
--------- --------- -------- --------
Total distributions ............................................... (1.68) (0.61) (0.70) (0.30)
--------- --------- -------- --------
Net asset value, end of period ....................................... $ 18.12 $ 15.52 $ 13.12 $ 13.62
========= ========= ======== ========
Total return (a) ..................................................... 27.74% 23.06% 0.25% 35.05%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 534,820 $ 289,506 $261,778 $ 99,094
Ratio of expenses to average net assets (b) ........................ 0.99% 0.99% 1.01% 1.09%
Ratio of net investment income (loss) to average net assets (b)..... 0.46% 0.75% 0.73% 0.30%
Average commission rate paid per share (a) ......................... $ 0.0154 N/A N/A N/A
Portfolio turnover rate (a) ........................................ 88.31% 130.60% 192.06% 79.93%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 101
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
PORTFOLIO
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 15.62 $ 13.97
Income from operations:
Net investment income (loss) ....................................... 0.20 0.37
Net realized and unrealized gain (loss) on investments ............. 0.83 2.68
--------- ---------
Net income (loss) from operations ................................. 1.03 3.05
--------- ---------
Distributions:
Dividends from net investment income ............................... (0.04) (0.35)
Dividends in excess of net investment income ....................... 0.00 (0.03)
Distributions from net realized gains on investments ............... (0.11) (1.02)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- ---------
Total distributions ............................................... (0.15) (1.40)
--------- ---------
Net asset value, end of period ....................................... $ 16.50 $ 15.62
========= =========
Total return (a) ..................................................... 6.60% 21.85%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 585,432 $ 526,577
Ratio of expenses to average net assets (b) ........................ 0.86% 0.88%
Ratio of net investment income (loss) to average net assets (b)..... 2.40% 2.43%
Average commission rate paid per share (a) ......................... $ 0.0593 $ 0.0596
Portfolio turnover rate (a) ........................................ 16.21% 48.20%
<CAPTION>
STRATEGIC TOTAL RETURN PORTFOLIO
------------------------------------------------------
DECEMBER 31,
------------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------- -------------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 12.86 $ 10.90 $ 11.23 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.37 0.37 0.31 0.19
Net realized and unrealized gain (loss) on investments ............. 1.56 2.33 (0.33) 1.33
--------- --------- -------- -------
Net income (loss) from operations ................................. 1.93 2.70 (0.02) 1.52
--------- --------- -------- -------
Distributions:
Dividends from net investment income ............................... (0.32) (0.37) (0.31) (0.19)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (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
--------- --------- -------- -------
Total distributions ............................................... (0.82) (0.74) (0.31) (0.29)
--------- --------- -------- -------
Net asset value, end of period ....................................... $ 13.97 $ 12.86 $ 10.90 $ 11.23
========= ========= ======== =======
Total return (a) ..................................................... 15.00% 24.66% (0.53%) 13.49%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 390,141 $ 256,806 $ 183,867 $90,560
Ratio of expenses to average net assets (b) ........................ 0.91% 0.87% 0.89% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 2.72% 3.07% 2.78% 1.70%
Average commission rate paid per share (a) ......................... $ 0.0582 N/A N/A N/A
Portfolio turnover rate (a) ........................................ 49.32% 52.59% 53.50% 27.41%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH PORTFOLIO
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 20.37 $ 18.46
Income from operations:
Net investment income (loss) ....................................... (0.04) (0.05)
Net realized and unrealized gain (loss) on investments ............. 4.61 4.03
--------- ---------
Net income (loss) from operations ................................. 4.57 3.98
--------- ---------
Distributions:
Dividends from net investment income ............................... 0.00 0.00
Dividends in excess of net investment income ....................... 0.00 0.00
Distributions from net realized gains on investments ............... (0.04) (2.07)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- ---------
Total distributions ............................................... (0.04) (2.07)
--------- ---------
Net asset value, end of period ....................................... $ 24.90 $ 20.37
========= =========
Total return (a) ..................................................... 22.48% 21.45%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 737,720 $ 592,003
Ratio of expenses to average net assets (b) ........................ 0.88% 0.93%
Ratio of net investment income (loss) to average net assets (b)..... (0.34%) (0.27%)
Average commission rate paid per share (a) ......................... $ 0.0586 $ 0.0582
Portfolio turnover rate (a) ........................................ 47.96% 99.78%
<CAPTION>
EMERGING GROWTH PORTFOLIO
-------------------------------------------------------
DECEMBER 31,
-------------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 16.25 $ 11.55 $ 12.47 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.04) 0.01 0.01 (0.04)
Net realized and unrealized gain (loss) on investments ............. 3.10 5.42 (0.92) 2.51
--------- -------- -------- --------
Net income (loss) from operations ................................. 3.06 5.43 (0.91) 2.47
--------- -------- -------- --------
Distributions:
Dividends from net investment income ............................... 0.00 0.00 (0.01) 0.00
Dividends in excess of net investment income ....................... 0.00 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (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
--------- -------- -------- --------
Total distributions ............................................... (0.85) (0.73) (0.01) 0.00
--------- -------- -------- --------
Net asset value, end of period ....................................... $ 18.46 $ 16.25 $ 11.55 $ 12.47
========= ======== ======== ========
Total return (a) ..................................................... 18.88% 46.79% (7.36%) 24.71%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 431,454 $288,519 $ 182,650 $ 102,472
Ratio of expenses to average net assets (b) ........................ 0.94% 0.91% 0.92% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... (0.24%) 0.03% 0.06% (0.30%)
Average commission rate paid per share (a) ......................... $ 0.0565 N/A N/A N/A
Portfolio turnover rate (a) ........................................ 80.02% 124.13% 72.62% 12.79%
</TABLE>
The notes to the financial statements are an integral part of this report.
102 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
---------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 16.04 $ 14.18
Income from operations:
Net investment income (loss) ....................................... (0.02) (0.01)
Net realized and unrealized gain (loss) on investments ............. 4.38 3.44
--------- --------
Net income (loss) from operations ................................. 4.36 3.43
--------- --------
Distributions:
Dividends from net investment income ............................... (0.01) 0.00
Dividends in excess of net investment income ....................... (0.04) (0.42)
Distributions from net realized gains on investments ............... (0.31) (1.15)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- --------
Total distributions ............................................... (0.36) (1.57)
--------- --------
Net asset value, end of period ....................................... $ 20.04 $ 16.04
========= ========
Total return (a) ..................................................... 27.38% 24.25%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 453,536 $336,166
Ratio of expenses to average net assets (b) ........................ 0.91% 0.96%
Ratio of net investment income (loss) to average net assets (b)..... (0.19%) (0.06%)
Average commission rate paid per share (a) ......................... $ 0.0704 $0.0710
Portfolio turnover rate (a) ........................................ 55.20% 136.18%
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
--------------------------------------
DECEMBER 31,
--------------------------------------
1996 1995 1994 (d)
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 13.25 $ 9.86 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.01) (0.06) 0.02
Net realized and unrealized gain (loss) on investments ............. 1.38 3.96 (0.14)
-------- ------- -------
Net income (loss) from operations ................................. 1.37 3.90 (0.12)
-------- ------- -------
Distributions:
Dividends from net investment income ............................... 0.00 0.00 (0.02)
Dividends in excess of net investment income ....................... (0.19) 0.00 0.00
Distributions from net realized gains on investments ............... (0.25) (0.51) 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- ------- -------
Total distributions ............................................... (0.44) (0.51) (0.02)
-------- ------- -------
Net asset value, end of period ....................................... $ 14.18 $ 13.25 $ 9.86
======== ======= =======
Total return (a) ..................................................... 10.45% 38.02% (1.26%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $220,552 $158,534 $38,826
Ratio of expenses to average net assets (b) ........................ 0.98% 1.07% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... (0.10%) (0.48%) (0.20%)
Average commission rate paid per share (a) ......................... $0.0708 N/A N/A
Portfolio turnover rate (a) ........................................ 101.28% 108.04% 89.73%
</TABLE>
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
------------------------------
JUNE 30, DECEMBER 31,
--------------- --------------
1998 1997
--------------- --------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 12.01 $ 11.39
Income from operations:
Net investment income (loss) ....................................... 0.17 0.38
Net realized and unrealized gain (loss) on investments ............. 0.33 1.56
-------- --------
Net income (loss) from operations ................................. 0.50 1.94
-------- --------
Distributions:
Dividends from net investment income ............................... (0.04) (0.36)
Dividends in excess of net investment income ....................... 0.00 (0.30)
Distributions from net realized gains on investments ............... (0.01) (0.66)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
-------- --------
Total distributions ............................................... (0.05) (1.32)
-------- --------
Net asset value, end of period ....................................... $ 12.46 $ 12.01
======== ========
Total return (a) ..................................................... 4.18% 17.10%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 88,554 $ 73,451
Ratio of expenses to average net assets (b) ........................ 0.90% 0.94%
Ratio of net investment income (loss) to average net assets (b)..... 2.72% 3.13%
Average commission rate paid per share (a) ......................... $ 0.0020 $ 0.0034
Portfolio turnover rate (a) ........................................ 43.29% 77.06%
<CAPTION>
BALANCED PORTFOLIO
--------------------------------------
DECEMBER 31,
--------------------------------------
1996 1995 1994 (d)
----------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 10.63 $ 9.24 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.34 0.44 0.34
Net realized and unrealized gain (loss) on investments ............. 0.80 1.38 (0.76)
-------- -------- --------
Net income (loss) from operations ................................. 1.14 1.82 (0.42)
-------- -------- --------
Distributions:
Dividends from net investment income ............................... (0.28) (0.43) (0.34)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (0.10) 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- -------- --------
Total distributions ............................................... (0.38) (0.43) (0.34)
-------- -------- --------
Net asset value, end of period ....................................... $ 11.39 $ 10.63 $ 9.24
======== ======== ========
Total return (a) ..................................................... 10.72% 19.80% (5.73%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 49,331 $ 31,114 $ 19,422
Ratio of expenses to average net assets (b) ........................ 0.97% 0.97% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 3.14% 4.38% 4.27%
Average commission rate paid per share (a) ......................... $ 0.0024 N/A N/A
Portfolio turnover rate (a) ........................................ 76.90% 98.55% 57.73%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 103
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
GROWTH & INCOME PORTFOLIO
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- -----------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 12.56 $ 11.76
Income from operations:
Net investment income (loss) ....................................... 0.26 0.49
Net realized and unrealized gain (loss) on investments ............. (0.10) 2.35
--------- --------
Net income (loss) from operations ................................. 0.16 2.84
--------- --------
Distributions:
Dividends from net investment income ............................... (0.23) (0.43)
Dividends in excess of net investment income ....................... 0.00 (0.59)
Distributions from net realized gains on investments ............... (0.05) (1.02)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- --------
Total distributions ............................................... (0.28) (2.04)
--------- --------
Net asset value, end of period ....................................... $ 12.44 $ 12.56
========= ========
Total return (a) ..................................................... 1.25% 24.65%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 81,008 $ 60,492
Ratio of expenses to average net assets (b) ........................ 0.88% 0.96%
Ratio of net investment income (loss) to average net assets (b)..... 4.22% 3.84%
Average commission rate paid per share (a) ......................... $ 0.0545 $ 0.0469
Portfolio turnover rate (a) ........................................ 30.25% 155.77%
<CAPTION>
GROWTH & INCOME PORTFOLIO
----------------------------------------
DECEMBER 31,
----------------------------------------
1996 1995 1994 (d)
------------- ------------- ------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 11.12 $ 9.30 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.42 0.46 0.43
Net realized and unrealized gain (loss) on investments ............. 0.87 1.93 (0.70)
--------- --------- --------
Net income (loss) from operations ................................. 1.29 2.39 (0.27)
--------- --------- --------
Distributions:
Dividends from net investment income ............................... (0.33) (0.46) (0.43)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (0.32) (0.11) 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
--------- --------- --------
Total distributions ............................................... (0.65) (0.57) (0.43)
--------- --------- --------
Net asset value, end of period ....................................... $ 11.76 $ 11.12 $ 9.30
========= ========= ========
Total return (a) ..................................................... 11.64% 25.25% (4.58%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 38,115 $ 24,607 $ 10,482
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)..... 3.73% 4.56% 5.36%
Average commission rate paid per share (a) ......................... $ 0.0433 N/A N/A
Portfolio turnover rate (a) ........................................ 68.53% 78.34% 36.13%
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION PORTFOLIO
-------------------------------------------------------
JUNE 30, DECEMBER 31,
------------- -----------------------------------------
1998 1997 1996 1995 (e)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 13.61 $ 12.61 $ 11.49 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.20 0.36 0.33 0.41
Net realized and unrealized gain (loss) on investments ............. 0.77 1.72 1.33 1.93
--------- --------- --------- ---------
Net income (loss) from operations ................................. 0.97 2.08 1.66 2.34
--------- --------- --------- ---------
Distributions:
Dividends from net investment income ............................... (0.03) (0.33) (0.30) (0.41)
Dividends in excess of net investment income ....................... 0.00 (0.19) 0.00 0.00
Distributions from net realized gains on investments ............... (0.31) (0.56) (0.24) (0.44)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
Total distributions ............................................... (0.34) (1.08) (0.54) (0.85)
--------- --------- --------- ---------
Net asset value, end of period ....................................... $ 14.24 $ 13.61 $ 12.61 $ 11.49
========= ========= ========= =========
Total return (a) ..................................................... 7.14% 16.59% 14.42% 20.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 350,924 $ 302,745 $ 206,172 $ 120,531
Ratio of expenses to average net assets (b) ........................ 0.85% 0.87% 0.90% 0.93%
Ratio of net investment income (loss) to average net assets (b)..... 2.82% 2.65% 2.78% 3.76%
Average commission rate paid per share (a) ......................... $ 0.0078 $ 0.0322 $ 0.0050 N/A
Portfolio turnover rate (a) ........................................ 37.11% 63.76% 98.97% 38.68%
</TABLE>
The notes to the financial statements are an integral part of this report.
104 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
C.A.S.E. GROWTH PORTFOLIO
-----------------------------------------------------
JUNE 30, DECEMBER 31,
----------- ---------------------------------------
1998 1997 1996 1995 (f)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 14.01 $ 13.42 $ 11.66 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.02 0.04 0.12 0.12
Net realized and unrealized gain (loss) on investments ............. 0.58 1.95 1.92 2.49
------- -------- -------- --------
Net income (loss) from operations ................................. 0.60 1.99 2.04 2.61
------- -------- -------- --------
Distributions:
Dividends from net investment income ............................... (0.36) (0.03) (0.05) (0.12)
Dividends in excess of net investment income ....................... 0.00 (1.23) 0.00 0.00
Distributions from net realized gains on investments ............... (0.09) (0.14) (0.23) (0.83)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00 0.00
------- -------- -------- --------
Total distributions ............................................... (0.45) (1.40) (0.28) (0.95)
------- -------- -------- --------
Net asset value, end of period ....................................... $ 14.16 $ 14.01 $ 13.42 $ 11.66
======= ======== ======== ========
Total return (a) ..................................................... 4.44% 15.03% 17.50% 20.65%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $68,074 $ 60,596 $ 26,560 $ 2,578
Ratio of expenses to average net assets (b) ........................ 0.98% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 0.30% 0.25% 0.94% 1.02%
Average commission rate paid per share (a) ......................... $0.0570 $ 0.0593 $ 0.0604 N/A
Portfolio turnover rate (a) ........................................ 89.71% 196.50% 160.27% 121.62%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SECTOR PORTFOLIO
---------------------------------------
JUNE 30, DECEMBER 31,
----------- -------------------------
1998 1997 1996 (g)
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 10.37 $ 10.55 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.09 0.14 0.06
Net realized and unrealized gain (loss) on investments ............. 0.99 0.23 0.55
------- ------- -------
Net income (loss) from operations ................................. 1.08 0.37 0.61
------- ------- -------
Distributions:
Dividends from net investment income ............................... (0.05) (0.13) (0.02)
Dividends in excess of net investment income ....................... 0.00 (0.38) 0.00
Distributions from net realized gains on investments ............... 0.00 (0.04) (0.04)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
------- ------- -------
Total distributions ............................................... (0.05) (0.55) (0.06)
------- ------- -------
Net asset value, end of period ....................................... $ 11.40 $ 10.37 $ 10.55
======= ======= =======
Total return (a) ..................................................... 10.39% 3.43% 6.08%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $13,581 $12,721 $ 6,986
Ratio of expenses to average net assets (b) ........................ 1.28% 1.70% 2.37%
Ratio of net investment income (loss) to average net assets (b)..... 1.58% 1.27% 0.62%
Average commission rate paid per share (a) ......................... $0.0277 $0.0475 $0.0313
Portfolio turnover rate (a) ........................................ 16.38% 56.26% 27.58%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 105
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
VALUE EQUITY PORTFOLIO
-------------------------------------------
JUNE 30, DECEMBER 31,
------------- ---------------------------
1998 1997 1996 (g)
------------- ------------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 13.90 $ 11.27 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.06 0.12 0.10
Net realized and unrealized gain (loss) on investments ............. 0.80 2.69 1.23
--------- --------- -------
Net income (loss) from operations ................................. 0.86 2.81 1.33
--------- --------- -------
Distributions:
Dividends from net investment income ............................... (0.01) (0.09) (0.04)
Dividends in excess of net investment income ....................... 0.00 (0.07) 0.00
Distributions from net realized gains on investments ............... (0.03) (0.02) (0.02)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
--------- --------- -------
Total distributions ............................................... (0.04) (0.18) (0.06)
--------- --------- -------
Net asset value, end of period ....................................... $ 14.72 $ 13.90 $ 11.27
========= ========= =======
Total return (a) ..................................................... 6.18% 25.04% 13.19%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 205,497 $ 173,435 $49,394
Ratio of expenses to average net assets (b) ........................ 0.86% 0.89% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 0.75% 0.90% 0.89%
Average commission rate paid per share (a) ......................... $ 0.0632 $ 0.0630 $0.0696
Portfolio turnover rate (a) ........................................ 9.88% 17.28% 7.93%
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
PORTFOLIO
--------------------------
JUNE 30, DECEMBER 31,
------------ -------------
1998 1997 (h)
------------ -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 10.70 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.08 0.02
Net realized and unrealized gain (loss) on investments ............. 1.83 0.73
-------- -------
Net income (loss) from operations ................................. 1.91 0.75
-------- -------
Distributions:
Dividends from net investment income ............................... (0.01) (0.01)
Dividends in excess of net investment income ....................... 0.00 (0.04)
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 ............................................... (0.01) (0.05)
-------- -------
Net asset value, end of period ....................................... $ 12.60 $ 10.70
======== =======
Total return (a) ..................................................... 17.80% 7.50%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 32,666 $19,795
Ratio of expenses to average net assets (b) ........................ 1.50% 1.50%
Ratio of net investment income (loss) to average net assets (b)..... 1.29% 0.18%
Average commission rate paid per share (a) ......................... $ 0.0176 $0.0351
Portfolio turnover rate (a) ........................................ 30.54% 54.33%
</TABLE>
The notes to the financial statements are an integral part of this report.
106 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the period ended
(unaudited)
---------------------
<TABLE>
<CAPTION>
U.S. THIRD AVENUE REAL ESTATE
EQUITY VALUE SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------- -------------- ------------
JUNE 30, DECEMBER 31, JUNE 30, JUNE 30,
----------- -------------- -------------- ------------
1998 1997 (h) 1998 (i) 1998 (j)
----------- -------------- -------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................................. $ 12.23 $ 10.00 $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.05 0.09 0.06 0.09
Net realized and unrealized gain (loss) on investments ............. 1.70 2.60 (0.47) (0.30)
------- ------- ------- -------
Net income (loss) from operations ................................. 1.75 2.69 (0.41) (0.21)
------- ------- ------- -------
Distributions:
Dividends from net investment income ............................... (0.11) (0.04) 0.00 0.00
Dividends in excess of net investment income ....................... 0.00 (0.38) 0.00 0.00
Distributions from net realized gains on investments ............... (0.02) (0.04) 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00 0.00
------- ------- ------- -------
Total distributions ............................................... (0.13) (0.46) 0.00 0.00
------- ------- ------- -------
Net asset value, end of period ....................................... $ 13.85 $ 12.23 $ 9.59 $ 9.79
======= ======= ======= =======
Total return (a) ..................................................... 14.34% 27.01% (4.09%) (2.15%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $69,899 $42,951 $15,516 $ 1,561
Ratio of expenses to average net assets (b) ........................ 1.08% 1.30% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets (b)..... 0.78% 0.75% 1.19% 5.89%
Average commission rate paid per share (a) ......................... $0.0431 $0.0364 $0.0327 $0.0300
Portfolio turnover rate (a) ........................................ 27.54% 92.35% 0.70% 10.67%
NOTES TO FINANCIAL HIGHLIGHTS:
<FN>
- ----------
* The above table illustrates the change for a share outstanding computed using
average shares outstanding throughout each period.
See Note 6.
(a) For periods of less than one year the total return, portfolio turnover rate
and average commission rate paid per share 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 of this Portfolio was March 1, 1993.
(d) The inception of this Portfolio was March 1, 1994.
(e) The inception of this Portfolio was January 3, 1995.
(f) The inception of this Portfolio was May 1, 1995.
(g) The inception of this Portfolio was May 1, 1996.
(h) The inception of this Portfolio was January 2, 1997.
(i) The inception of this Portfolio was January 2, 1998.
(j) The inception of this Portfolio was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 107
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------
NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Fund, Inc. (collectively referred to as the "Fund" and
individually as a "Portfolio") 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 serves
as a funding vehicle for the Separate Accounts of Western Reserve Life Assurance
Co. of Ohio ("WRL") and certain of its affiliates. See the prospectus and the
Statement of Additional Information for a description of each Portfolio's
investment objective.
The following is a summary of significant accounting policies followed
consistently by the Fund in accordance with generally accepted accounting
principles. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
A. VALUATION OF INVESTMENT
The securities held by the Money Market Portfolio are valued on the basis of
amortized cost which approximates market value.
Securities held by the remaining Portfolios are valued at market value,
except for short-term debt securities. Securities are valued at the last
reported sales price on the securities exchange on which the issue is
principally traded, or if no sale is reported for a stock, the latest bid price
is used. Stocks traded in the over-the-counter market are valued at the last
quoted bid prices. Bonds are valued using prices quoted by independent pricing
services. Short-term debt securities maturing in 60 days or less are valued
based on amortized cost, which approximated market value. Other 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.
B. SECURITIES 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. Dividend income is
recorded on the ex-dividend date except that certain dividends from foreign
securities are recorded as soon as the Fund is informed of the ex-dividend date.
Interest income, including amortization of premium and accretion of discount, is
accrued daily, commencing on the settlement date.
C. FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. Securities
and other assets and liabilities denominated in foreign currencies are
translated into U.S. dollars at the closing exchange rate each day. The cost of
foreign securities is translated at the exchange rate in effect when the
investment is acquired. The Fund combines fluctuations from currency exchange
rates and fluctuations in market value when computing net realized and
unrealized gain or loss from investments. Net foreign currency gains and losses
resulting from changes in exchange rates include foreign currency gains and
losses between trade date and settlement date of investment securities
transactions, gains and losses on forward foreign currency contracts and the
difference between the amounts of interest and dividends recorded in the
accounting records in U.S. dollars and the amounts actually received. Foreign
denominated assets may involve risks not typically associated with domestic
transactions including unanticipated movements in exchange rates, the degree of
government supervision and regulation of security markets and the possibility of
political or economic instability.
D. FORWARD FOREIGN CURRENCY CONTRACTS
The Fund is authorized to enter into forward foreign currency contracts for
the purpose of hedging against exchange risk arising from investments in
securities denominated in foreign currencies. Forward foreign currency contracts
are valued at the contractual forward rate and are marked to market daily, with
the change in market value recorded as an unrealized gain or loss. When the
contracts are closed the Portfolios record a realized gain or loss. Risks may
arise from the changes in market value of the underlying instruments and from
the possible inability of counterparties to meet the terms of their contracts.
E. FUTURES CONTRACTS
The Fund is authorized to enter into stock index or U.S. Treasury securities
futures contracts. Futures contracts are valued at the settlement price
established each day by the board of trade or exchange on which they are traded.
The underlying face amounts at value of any open futures contracts at June 30,
1998, are listed in Note 5. The variation margin receivable or payable, as
applicable, is also included in Note 5. The primary risk associated with the use
of futures contracts is imperfect correlation between the change in the value of
the futures contracts and the market value of the securities held by the
Portfolio.
108 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 1 -- (CONTINUED)
F. SECURITIES LENDING
The Fund derives income from its securities lending activities. During the
six months ended June 30, 1998, the following amounts of income, net of related
expenses, resulting from securities lending activities are included in interest
income:
PORTFOLIO INCOME
- ------------------------------------ -------
Bond .............................. $ 50
Growth ............................ 187
Global ............................ 221
Strategic Total Return ............ 167
Emerging Growth ................... 248
Aggressive Growth ................. 85
Balanced .......................... 43
Growth & Income ................... 6
Tactical Asset Allocation ......... 39
C.A.S.E. Growth ................... 25
Value Equity ...................... 6
G. 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.
H. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Money Market Portfolio are declared daily and reinvested at
least monthly. Dividends of the remaining Portfolios are typically declared and
reinvested annually, while capital gains 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
the ex-date.
An investment in a real estate investment trust ("REIT") equity security may
result in the receipt of income in excess of the security's earnings. This
excess amount cannot be determined at the time of receipt. Amounts distributed
which are subsequently determined to exceed the security's earnings would
consititute a return of capital to Fund shareholders for federal income tax
purposes.
I. 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.
J. INVESTMENT RISK
There are certain additional risks involved in investing in REITs rather than
a more diversified portfolio of investments. The Real Estate Securities
Portfolio invests primarily in real estate related securities. As a result, the
net asset value can be expected to change in light of factors affecting the real
estate industry. These factors include economic conditions, changes in zoning
laws, changes in real estate value and property taxes, and changes in interest
rates. The value of the Real Estate Securities Portfolio's shares may fluctuate
more widely than the value of shares of a portfolio that invests in a broader
range of industries.
NOTE 2 -- INVESTMENT ADVISORY AND TRANSACTIONS WITH AFFILIATES
WRL Investment Management, Inc. ("WRL Management") is the investment adviser
for the Fund. WRL Investment Services, Inc. ("WRL Services") provides the Fund
with administrative and transfer agency services. InterSecurities, Inc. ("ISI")
is the Fund's distributor. WRL Management and WRL Services are wholly-owned
subsidiaries of WRL, which is an indirect wholly-owned subsidiary of AEGON nv, a
Netherlands corporation. In addition, ISI is an indirect wholly-owned subsidiary
of AEGON nv.
A. INVESTMENT ADVISORY FEES
The Portfolios pay advisory fees at the following annual rate to WRL
Management as a percentage of the average daily net assets of the respective
Portfolio. WRL Management currently voluntarily waives its advisory fees to the
extent a Portfolio's normal operating expenses exceed the stated annual limit.
1 9 9 8 S e m i - A n n u a l R e p o r t 109
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 2 -- (CONTINUED)
PORTFOLIO ADVISORY FEE EXPENSE LIMIT
- --------- ------------ -------------
Money Market ...................... 0.40 % 0.70 %
Bond .............................. 0.45 % 0.70 %
Growth ............................ 0.80 % 1.00 %
Global ............................ 0.80 % 1.00 %
Strategic Total Return ............ 0.80 % 1.00 %
Emerging Growth ................... 0.80 % 1.00 %
Aggressive Growth ................. 0.80 % 1.00 %
Balanced .......................... 0.80 % 1.00 %
Growth & Income ................... 0.75 % 1.00 %
Tactical Asset Allocation ......... 0.80 % 1.00 %
C.A.S.E. Growth ................... 0.80 % 1.00 %
Global Sector ..................... 0.80 % N/A
Value Equity ...................... 0.80 % 1.00 %
International Equity .............. 1.00 % 1.50 %
U.S. Equity ....................... 0.80 % 1.30 %
Third Avenue Value ................ 0.80 % 1.00 %
Real Estate Securities ............ 0.80 % 1.00 %
The Investment Adviser has voluntarily undertaken to waive a portion of the
investment advisory fees payable by the Growth Portfolio such that total
investment advisory fees payable by the Growth Portfolio will equal 0.775 % of
the average daily net assets of the Growth Portfolio.
B. SUB-ADVISERS
WRL Management has entered into sub-advisory agreements with various
management companies ("Sub-Advisers") to provide investment services to the
Portfolios and compensates the Sub-Advisers as described in the prospectus.
Effective January 1, 1998, the Sub-Adviser for the Bond Portfolio changed
from Janus Capital Corporation to AEGON USA Investment Management, Inc. ("AEGON
Management"). AEGON Management is also the Sub-Adviser to the Balanced Portfolio
and is an indirect wholly-owned subsidiary of AEGON nv. Scottish Equitable
Investment Management, Ltd. is a Sub-Adviser to the International Equity
Portfolio and is also an indirect wholly-owned subsidiary of AEGON nv.
The Sub-Advisers may occasionally place portfolio business with affiliated
brokers of WRL Management or a Sub-Adviser. The Fund has been informed that
brokerage commissions were paid to affiliated brokers of WRL Management or the
Sub-Adviser during the six months ended June 30, 1998, as follows:
PORTFOLIO COMMISSIONS
- --------------------------- ------------
Aggressive Growth ......... $ 455
C. INVESTMENT IN AFFILIATES
The fund held the following investments in affiliates at June 30, 1998.
MARKET
SHARES COST VALUE
-------- ---------- ----------
Global Portfolio:
Nortel Inversora S.A. - ADR ......... 121 $ 3,486 $ 3,010
Emerging Growth Portfolio:
Providian Financial
Corporation ...................... 100 5,335 7,855
1998
1998 1998 DIVIDEND
PURCHASES SALES INCOME
----------- -------- ---------
Global Portfolio:
Nortel Inversora S.A. - ADR ......... $ 0 $ 0 $ 23
Emerging Growth Portfolio:
Providian Financial
Corporation ....................... 2,895 0 7
U.S. Equity Portfolio:
AEGON nv - ADR ...................... 2 23 0
Providian Financial
Corporation ....................... 0 0.18 0
D. ADMINISTRATIVE SERVICES
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 Separate Accounts. WRL
Services directly incurs and pays these operating expenses relating to the Fund,
which subsequently reimburses WRL Services.
E. 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 Distribution Plan, has entered into a
Distribution Agreement with ISI.
Under the Distribution Plan, the Fund, on behalf of the Portfolios, is
authorized to pay to various service providers, as
110 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 2 -- (CONTINUED)
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 the
distribution expenses incurred with respect to any Portfolio during the fiscal
year ended December 31, 1998. Prior to ISI seeking reimbursement of future
expenses, policy and contract owners will be notified in advance.
F. DEFERRED COMPENSATION PLAN
Each eligible Director of the Fund who is not an officer or affiliated person
as defined under the Investment Company Act of 1940, as amended, may elect to
participate in the Deferred Compensation Plan for Directors of the WRL Series
Fund, Inc. ( 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,
an affiliate of the Fund. At June 30, 1998, the market value of invested plan
amounts was $ 51. Invested plan amounts and the total liability for deferred
compensation to the Directors under the Plan at June 30, 1998, are included in
Net assets in the accompanying Statement of Assets and Liabilities.
NOTE 3 -- SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
For the period ended June 30, 1998:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 0 $ 38,815 $ 258,723 $ 362,936
U.S. Government securities ..................... 794,439 195,192 274,662 6,499
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 0 23,803 207,199 307,815
U.S. Government securities ..................... 810,395 164,385 381,000 6,500
STRATEGIC
TOTAL EMERGING AGGRESSIVE
RETURN GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
For the period ended June 30, 1998:
Purchases of securities:
Long-term excluding U.S. Government ............ $100,841 $ 302,293 $ 230,564 $ 31,751
U.S. Government securities ..................... 21,035 3,684,163 0 11,566
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 77,552 301,671 207,250 24,641
U.S. Government securities ..................... 12,367 3,677,647 0 10,521
GROWTH & TACTICAL ASSET C.A.S.E. GLOBAL
INCOME ALLOCATION GROWTH SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
For the period ended June 30, 1998:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 40,703 $ 111,669 $ 56,807 $ 1,999
U.S. Government securities ..................... 5,809 24,690 0 0
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 20,626 76,418 52,965 3,301
U.S. Government securities ..................... 0 36,133 0 0
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 111
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 3 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE INTERNATIONAL THIRD AVENUE
EQUITY EQUITY U.S. EQUITY VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO (a)
<S> <C> <C> <C> <C>
For the period ended June 30, 1998:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 40,015 $ 15,905 $ 36,729 $ 15,310
U.S. Government securities ..................... 11,846 0 0 0
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 17,315 7,160 14,925 57
U.S. Government securities ..................... 14,000 0 0 0
REAL ESTATE
SECURITIES
PORTFOLIO (b)
For the period ended June 30, 1998:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 1,675
U.S. Government securities ..................... 0
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 136
U.S. Government securities ..................... 0
<FN>
- ----------
(a) The inception date of this Portfolio was January 2, 1998.
(b) The inception date of this Portfolio was May 1, 1998.
</FN>
</TABLE>
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, 1997, if
applicable, are available to offset future realized capital gains through the
periods listed. Each Portfolio has elected to treat the net capital losses
incurred in the two month period ended December 31, 1997, (Post-October Losses
Deferred), if applicable, as having been incurred in the current fiscal year.
<TABLE>
<CAPTION>
PRIOR YEAR
POST-OCTOBER DECEMBER 31, 1997 NET CAPITAL LOSS
LOSSES TO BE NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO RECOGNIZED CARRYFORWARD AVAILABLE THROUGH
- --------- -------------- ------------------- -----------------------------
<S> <C> <C> <C>
Money Market ................... $ 0 $ 0 N/A
Bond ........................... 0 (6,182) $ (5,921) December 31, 2002
(261) December 31, 2005
Growth ......................... 0 0 N/A
Global ......................... (5,182) 0 N/A
Strategic Total Return ......... 0 0 N/A
Emerging Growth ................ 0 0 N/A
Aggressive Growth .............. 0 0 N/A
</TABLE>
112 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 4 -- (CONTINUED)
<TABLE>
<CAPTION>
PRIOR YEAR
POST-OCTOBER DECEMBER 31, 1997 NET CAPITAL LOSS
LOSSES TO BE NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO RECOGNIZED CARRYFORWARD AVAILABLE THROUGH
- --------- -------------- ------------------- ------------------
<S> <C> <C> <C>
Balanced .......................... $ 0 $ 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 ..................... (10) 0 N/A
Value Equity ...................... 0 0 N/A
International Equity .............. (224) (105) December 31, 2005
U.S. Equity ....................... 0 0 N/A
Third Avenue Value ................ 0 0 N/A
Real Estate Securities ............ 0 0 N/A
</TABLE>
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for Federal income tax purposes as of June 30, 1998, are as
follows:
<TABLE>
<CAPTION>
NET UNREALIZED
FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO COST BASIS APPRECIATION (DEPRECIATION) (DEPRECIATION)
- --------- ------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Money Market ...................... $ 145,639 $ 0 $ 0 $ 0
Bond .............................. 135,988 2,900 (93) 2,807
Growth ............................ 1,378,028 1,102,274 (10,127) 1,092,147
Global ............................ 778,437 311,582 (7,197) 304,385
Strategic Total Return ............ 464,667 129,821 (12,604) 117,217
Emerging Growth ................... 495,697 243,263 (5,183) 238,080
Aggressive Growth ................. 325,039 131,333 (1,463) 129,870
Balanced .......................... 74,290 11,663 (2,773) 8,890
Growth & Income ................... 77,581 4,693 (1,712) 2,981
Tactical Asset Allocation ......... 305,896 40,774 (8,616) 32,158
C.A.S.E. Growth ................... 69,942 2,191 (8,785) (6,594)
Global Sector ..................... 11,293 1,624 (971) 653
Value Equity ...................... 176,710 36,115 (7,416) 28,699
International Equity .............. 27,503 4,506 (1,576) 2,930
U.S. Equity ....................... 60,797 6,977 (1,539) 5,438
Third Avenue Value ................ 15,249 346 (1,335) (989)
Real Estate Securities ............ 1,526 10 (36) (26)
</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 the Fund'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 Fund'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.
1 9 9 8 S e m i - A n n u a l R e p o r t 113
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 5 -- (CONTINUED)
The Growth, Global and International 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, 1998, are as follows:
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Growth Portfolio
British Pound ................. (22,500) 08/13/98 $ (37,490) $ (1,131)
British Pound ................. (2,000) 08/13/98 (3,332) (87)
British Pound ................. (1,200) 08/13/98 (2,000) (40)
British Pound ................. 700 08/13/98 1,166 27
British Pound ................. 1,200 08/13/98 2,000 6
British Pound ................. (3,500) 08/14/98 (5,831) (115)
British Pound ................. 1,500 08/14/98 2,499 0
British Pound ................. 2,000 08/14/98 3,332 22
British Pound ................. (4,400) 10/07/98 (7,307) (13)
British Pound ................. (2,000) 10/07/98 (3,322) (70)
British Pound ................. (1,000) 10/07/98 (1,661) (38)
British Pound ................. (1,000) 10/07/98 (1,661) 1
British Pound ................. 1,000 10/07/98 1,661 35
German Deutschemark ........... (140) 07/02/98 (78) 0
German Deutschemark ........... (111) 07/02/98 (62) (1)
German Deutschemark ........... (30) 07/02/98 (17) 0
German Deutschemark ........... 70 07/02/98 39 0
German Deutschemark ........... 211 07/02/98 117 0
German Deutschemark ........... (412) 07/23/98 (229) (1)
German Deutschemark ........... (167) 07/23/98 (93) 0
German Deutschemark ........... (60) 07/23/98 (33) 0
German Deutschemark ........... (10) 07/23/98 (6) 0
German Deutschemark ........... 100 07/23/98 56 0
German Deutschemark ........... (150) 10/19/98 (84) 0
German Deutschemark ........... (100) 10/19/98 (56) 0
German Deutschemark ........... (70) 10/19/98 (39) 0
German Deutschemark ........... (50) 10/19/98 (28) 1
German Deutschemark ........... (211) 11/12/98 (118) 0
German Deutschemark ........... (120) 11/12/98 (67) 0
--------- --------
Total Growth Portfolio ..... $ (52,644) $ (1,404)
========= ========
</TABLE>
114 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Global Portfolio
British Pound .......... (131) 07/01/98 $ (219) $ 0
British Pound .......... 31 07/01/98 52 0
British Pound .......... (67) 07/02/98 (113) 0
British Pound .......... 27 07/02/98 45 0
British Pound .......... 277 07/02/98 463 0
British Pound .......... 395 07/02/98 660 0
British Pound .......... 484 07/02/98 808 0
British Pound .......... 591 07/02/98 987 0
British Pound .......... (34) 07/06/98 (57) 0
British Pound .......... 20 07/06/98 34 0
British Pound .......... 70 07/06/98 116 0
British Pound .......... 108 07/06/98 180 0
British Pound .......... 146 07/06/98 244 1
British Pound .......... 380 07/06/98 634 3
British Pound .......... 510 07/06/98 852 4
British Pound .......... 627 07/06/98 1,047 5
British Pound .......... 862 07/06/98 1,440 7
British Pound .......... (19,200) 07/10/98 (32,052) (507)
British Pound .......... (2,400) 08/07/98 (4,000) (38)
British Pound .......... (2,400) 08/07/98 (4,000) (35)
British Pound .......... (2,310) 08/07/98 (3,850) (57)
British Pound .......... (4,000) 08/13/98 (6,665) (202)
British Pound .......... (8,000) 10/07/98 (13,288) (38)
British Pound .......... (5,000) 10/07/98 (8,305) (168)
British Pound .......... (2,390) 10/07/98 (3,970) (87)
Danish Krone ........... (1,750) 07/01/98 (255) (1)
Dutch Guilder .......... 3,767 07/01/98 1,853 6
Dutch Guilder .......... 1,459 07/02/98 718 4
Dutch Guilder .......... (13,000) 07/17/98 (6,399) (11)
Dutch Guilder .......... 4,000 07/17/98 1,969 (53)
Dutch Guilder .......... (5,000) 07/23/98 (2,462) (5)
Dutch Guilder .......... (15,000) 07/31/98 (7,390) 69
Dutch Guilder .......... (9,000) 07/31/98 (4,434) (30)
Dutch Guilder .......... (9,000) 07/31/98 (4,434) (23)
Dutch Guilder .......... (9,000) 07/31/98 (4,434) (14)
Dutch Guilder .......... 6,000 07/31/98 2,956 (78)
Dutch Guilder .......... 10,000 07/31/98 4,927 (124)
Dutch Guilder .......... 10,000 07/31/98 4,927 (124)
Finnish Markka ......... (317) 07/01/98 (58) 0
French Franc ........... (54,425) 07/23/98 (9,018) (33)
French Franc ........... 21,100 07/23/98 3,496 (84)
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 115
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Global Portfolio (continued)
French Franc .................. (24,000) 07/31/98 $ (3,979) $ (26)
French Franc .................. (20,600) 07/31/98 (3,415) (21)
French Franc .................. (17,725) 07/31/98 (2,939) (8)
French Franc .................. (13,250) 07/31/98 (2,197) 17
French Franc .................. (2,224) 07/31/98 (369) 0
French Franc .................. 261 07/31/98 43 0
French Franc .................. 269 07/31/98 45 0
French Franc .................. 542 07/31/98 90 0
French Franc .................. 849 07/31/98 141 0
French Franc .................. 890 07/31/98 148 0
French Franc .................. 1,245 07/31/98 206 1
French Franc .................. 1,686 07/31/98 280 2
French Franc .................. 2,366 07/31/98 392 2
French Franc .................. 3,166 07/31/98 525 0
French Franc .................. 6,697 07/31/98 1,110 5
French Franc .................. 7,937 07/31/98 1,316 7
French Franc .................. 19,552 07/31/98 3,241 14
French Franc .................. 21,100 07/31/98 3,498 (86)
French Franc .................. (9,500) 10/21/98 (1,584) (7)
French Franc .................. 9,500 10/21/98 1,584 (35)
German Deutschemark ........... (3,800) 07/02/98 (2,107) (12)
German Deutschemark ........... (3,328) 07/02/98 (1,846) (6)
German Deutschemark ........... (2,800) 07/02/98 (1,553) (11)
German Deutschemark ........... (2,000) 07/02/98 (1,109) (6)
German Deutschemark ........... (1,000) 07/02/98 (555) 5
German Deutschemark ........... 2,728 07/02/98 1,513 (35)
German Deutschemark ........... 3,300 07/02/98 1,830 (46)
German Deutschemark ........... 6,900 07/02/98 3,826 (90)
German Deutschemark ........... (1,872) 07/10/98 (1,039) (4)
German Deutschemark ........... 1,872 07/10/98 1,039 (26)
German Deutschemark ........... (5,000) 07/23/98 (2,776) 7
German Deutschemark ........... (900) 07/23/98 (500) (1)
German Deutschemark ........... 1,400 07/23/98 777 (16)
German Deutschemark ........... (3,300) 10/21/98 (1,842) (4)
German Deutschemark ........... 3,300 10/21/98 1,842 (42)
Italian Lira .................. 1,541,352 07/06/98 868 5
Italian Lira .................. 1,820,559 07/06/98 1,025 4
Japanese Yen .................. 51,071 07/01/98 368 9
Japanese Yen .................. 62,973 07/01/98 454 11
Japanese Yen .................. 72,494 07/01/98 523 13
Japanese Yen .................. 84,817 07/01/98 612 15
</TABLE>
116 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Global Portfolio (continued)
Japanese Yen .................. 113,445 07/01/98 $ 818 $ 20
Japanese Yen .................. 125,712 07/01/98 907 22
Japanese Yen .................. 207,598 07/01/98 1,498 36
Japanese Yen .................. 258,290 07/01/98 1,863 33
Japanese Yen .................. 282,641 07/01/98 2,039 49
Japanese Yen .................. 4,659 07/02/98 34 1
Japanese Yen .................. 25,595 07/02/98 185 4
Japanese Yen .................. 53,941 07/02/98 389 8
Japanese Yen .................. 80,191 07/02/98 579 12
Japanese Yen .................. 157,089 07/02/98 1,133 24
Japanese Yen .................. (418,800) 08/07/98 (3,039) 187
Japanese Yen .................. (1,571,000) 10/07/98 (11,500) 585
Japanese Yen .................. (330,000) 10/07/98 (2,416) 122
Japanese Yen .................. 300,000 10/07/98 2,196 (106)
Japanese Yen .................. 500,000 10/07/98 3,660 (60)
Japanese Yen .................. 1,101,000 10/07/98 8,059 (44)
Japanese Yen .................. (1,521,000) 10/21/98 (11,158) (320)
Japanese Yen .................. (1,415,200) 10/21/98 (10,381) 903
Japanese Yen .................. 900,000 10/21/98 6,602 (517)
Japanese Yen .................. (845,000) 11/04/98 (6,212) 190
Japanese Yen .................. (550,000) 11/04/98 (4,043) 315
Japanese Yen .................. (350,000) 11/04/98 (2,573) (59)
Japanese Yen .................. (100,000) 11/19/98 (737) 99
Japanese Yen .................. 100,000 11/19/98 737 (11)
Portuguese Escudo ............. 2,803 07/02/98 15 0
Portuguese Escudo ............. 27,924 07/06/98 143 (7)
South African Rand ............ (2,340) 10/02/98 (378) 66
South African Rand ............ 1,125 10/02/98 182 (35)
South African Rand ............ 1,215 10/02/98 196 (37)
Spanish Peseta ................ (70,483) 07/01/98 (460) (1)
Spanish Peseta ................ (23,517) 07/02/98 (153) (1)
Swedish Krona ................. (32,000) 07/02/98 (4,014) (27)
Swedish Krona ................. (27,500) 07/02/98 (3,449) (45)
Swedish Krona ................. 59,500 07/02/98 7,463 (64)
Swedish Krona ................. (20,000) 08/07/98 (2,512) (6)
Swedish Krona ................. (30,000) 08/14/98 (3,770) 23
Swedish Krona ................. (59,500) 10/07/98 (7,494) 64
Swiss Franc ................... (1,909) 07/01/98 (1,259) (11)
Swiss Franc ................... (333) 07/01/98 (219) (2)
Swiss Franc ................... (1,919) 07/02/98 (1,266) (10)
Swiss Franc ................... (180) 07/02/98 (119) (1)
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 117
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
---------------------------------------------
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Global Portfolio (continued)
Swiss Franc ................................. (5,854) 07/10/98 $ (3,866) $ 174
Swiss Franc ................................. (4,000) 10/07/98 (2,666) 34
Swiss Franc ................................. (1,500) 11/04/98 (1,002) 37
Swiss Franc ................................. (9,746) 12/02/98 (6,531) 65
----------- -------
Total Gobal Portfolio .................... $ (140,028) $ (269)
=========== =======
International Equity Portfolio
British Pound ............................... 6 07/02/98 $ 10 $ 0
British Pound ............................... 83 07/06/98 138 0
French Franc ................................ (3,711) 07/30/98 (615) 15
French Franc ................................ (22) 07/31/98 (4) 0
French Franc ................................ 9 07/31/98 2 0
French Franc ................................ 44 07/31/98 7 0
French Franc ................................ 1,156 07/31/98 192 1
German Deutschemark ......................... (1,107) 07/31/98 (615) 15
Italian Lira ................................ 4,218 07/02/98 2 0
Italian Lira ................................ 73,003 07/02/98 41 0
Italian Lira ................................ 100,205 07/06/98 56 0
Japanese Yen ................................ (161,760) 07/29/98 (1,172) 28
Portuguese Escudo ........................... 658 07/01/98 4 0
Portuguese Escudo ........................... 1,378 07/01/98 7 0
----------- -------
Total International Equity Portfolio ..... $ (1,947) $ 59
=========== =======
</TABLE>
The U.S. Equity Portfolio entered into S&P 500 futures contracts, which
obligate the Fund to settle variation margins in cash daily. Securities with an
aggregate market value of $ 351 have been segregated with the custodian to cover
margin requirements for the following open future contracts at June 30, 1998:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT VALUE IN APPRECIATION
TYPE CONTRACTS DATE U.S. DOLLARS (DEPRECIATION)
- ---- ----------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
S&P 500 Index ......... 7 09/18/98 $ 2,000 $ 17
</TABLE>
118 W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(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. Where a Portfolio's period from inception is less than one
year, the total return shown is not annualized.
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 1998 1997 1996 1995 1994 1993
- --------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Money Market ...................... * * * * * *
Bond .............................. * * * * * *
Growth ............................ * * * * * *
Global ............................ * * * * * *
Strategic Total Return ............ * * * * * 1.12 %
Emerging Growth ................... * * * * * 1.16 %
Aggressive Growth ................. * * * * 1.18 % **
Balanced .......................... * * * * 1.34 % **
Growth & Income ................... * * * 1.08 % 1.90 % **
Tactical Asset Allocation ......... * * * * ** **
C.A.S.E. Growth ................... * 1.13 % 1.64 % 4.15 % ** **
Global Sector ..................... * * * ** ** **
Value Equity ...................... * * 1.03 % ** ** **
International Equity .............. 1.94 % 3.12 % ** ** ** **
U.S. Equity ....................... * 1.49 % ** ** ** **
Third Avenue Value ................ 1.16 % ** ** ** ** **
Real Estate Securities ............ 3.01 % ** ** ** ** **
</TABLE>
Without the advisory fee waived by WRL and the fees paid indirectly, the
ratio for each period presented would be as follows:
<TABLE>
<CAPTION>
PORTFOLIO JUNE 30, DECEMBER 31,
- --------- ------------ -------------
1998 1997
------------ -------------
<S> <C> <C>
Money Market ...................... * *
Bond .............................. * *
Growth ............................ * *
Global ............................ * *
Strategic Total Return ............ * *
Emerging Growth ................... * *
Aggressive Growth ................. * *
Balanced .......................... * *
Growth & Income ................... * *
Tactical Asset Allocation ......... * *
C.A.S.E. Growth ................... * 1.14 %
Global Sector ..................... * *
Value Equity ...................... * *
International Equity .............. 1.94 % 3.14 %
U.S. Equity ....................... * 1.54 %
Third Avenue Value ................ 1.16 % **
Real Estate Securities ............ 3.01 % **
<FN>
- ----------
* No waiver since the Portfolio did not exceed expense limitations.
** Portfolio was not in existence during this period.
</FN>
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 119
<PAGE>
[This page Intentionally Left Blank]
120 W R L S e r i e s F u n d , I n c .
<PAGE>
/DIAMOND/
WRL SERIES FUND, INC.
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
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
INDEPENDENT ACCOUNTANTS:
PricewaterhouseCoopers LLP
1055 Broadway
Kansas City, MO 64105 TRANSFER AGENT:
WRL Investment Services, Inc.
201 Highland Avenue
Largo, FL 33770-2597
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.
5355 Town Center Road
Suite 702
Boca Raton, FL 33486
EQSF Advisers, Inc.
767 Third Avenue
New York, NY 10017-2023
Scottish Equitable Investment
Management Limited
Edinburgh Park
Edinburgh EH12 9SE, 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
<PAGE>
THIS MATERIAL IS FOR CONTRACT AND POLICY
HOLDERS' 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 1998
ACC00001 (8/98)
<PAGE>
APPENDIX A
Appendix to Electronic Format Page 1 of 5
WRL Series Fund. Inc.
Page 1 (photo) Shown is John R. Kenney, Chairman of the Board
Page 3 (graph 1) Pie chart depicting portfolio composition as a percentage of
total portfolio net assets.
Commercial Paper 59.50%
Short-Term Obligations 16.50%
Certificates of Deposits 24.00%
Bar chart depicting maturity composition of the portfolio at
June 30, 1998.
Market Value
30 days $38,223,685
31-60 days $28,856,014
61-90 days $19,775,668
91-180 days $16,918,280
181-270 days $12,878,566
271 days to 1 year $28,987,112
more than 1 year $0
Page 5 (graph 2) Mountain graph depicting the change in value of a $10,000
investment in the 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
Period Ended 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 12/31/95 $21,228 $22,390
FYE 12/31/96 $21,258 $23,040
FYE 12/31/97 $23,204 $25,290
FPE 06/30/98 $24,129 $26,344
<PAGE>
Appendix to Electronic Format (continued) Page 2 of 5
WRL Series Fund. Inc.
Page 7 (graph 3) Mountain graph depicting the change in value of a $10,000
investment in the 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
Period Ended 12/31/86 $10,144 $10,560
FYE 12/31/87 $11,249 $11,110
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
FYE 12/31/97 $62,274 $58,333
FPE 06/30/98 $84,713 $68,665
Page 9 (graph 4) Mountain graph depicting the change in value of a $10,000
investment in the 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
Period Ended 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
FYE 12/31/97 $25,683 $21,070
FPE 06/30/98 $33,106 $24,576
Page 11 (graph 5) Mountain graph depicting the change in value of a $10,000
investment in the 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.
<TABLE>
<CAPTION>
Portfolio S&P Index LB Index
<S> <C> <C> <C>
Inception 3/1/93 $10,000 $10,000 $10,000
Period Ended 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 $18,459 $12,966
FYE 12/31/97 $19,178 $24,618 $13,986
FPE 06/30/98 $21,020 $28,978 $14,471
</TABLE>
Page 13 (graph 6) Mountain graph depicting the change in value of a $10,000
investment in the 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 $18,459
FYE 12/31/97 $24,488 $24,618
FPE 06/30/98 $29,992 $28,978
<PAGE>
Appendix to Electronic Format (continued) Page 3 of 5
WRL Series Fund. Inc.
Page 15 (graph 7) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Value
Line (Arithmetic) Index (VL) and the Standard's and Poor's
Index of 500 Common Stocks (S&P) over the same time frame.
<TABLE>
<CAPTION>
Portfolio VL Index S&P Index
<S> <C> <C> <C>
Inception 3/1/94 $10,000 $10,000 $10,000
Period Ended 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
FYE 12/31/97 $18,702 $18,766 $22,724
FPE 06/30/98 $23,822 $20,301 $26,749
</TABLE>
Page 17 (graph 8) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard's 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.
<TABLE>
<CAPTION>
Portfolio S&P Index LB Index
<S> <C> <C> <C>
Inception 3/1/94 $10,000 $10,000 $10,000
Period Ended 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
FYE 12/31/97 $14,642 $22,724 $12,737
FPE 06/30/98 $15,254 $26,749 $13,179
</TABLE>
Page 19 (graph 9) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Dow
Jones Utilities Average Index (Dow Util) the Standard's &
Poor's Index of 500 Common Stocks (S&P), and the Russell
3000 Index over the same time frame.
<TABLE>
<CAPTION>
Dow Util Russell
Portfolio Index S&P Index 3000 Index
<S> <C> <C> <C> <C>
Inception 3/1/94 $10,000 $10,000 $10,000 $10,000
Period Ended 12/31/94 $9,542 $9,166 $10,072 $9,872
FYE 12/31/95 $11,952 $12,063 $13,857 $13,068
FYE 12/31/96 $13,343 $13,065 $17,039 $15,575
FYE 12/31/97 $16,631 $16,084 $22,724 $20,165
FPE 06/30/98 $16,839 $17,641 $26,749 $23,046
</TABLE>
Page 21 (graph 10) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard's 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.
<TABLE>
<CAPTION>
Portfolio S&P Index LB Index
<S> <C> <C> <C>
Inception 1/3/95 $10,000 $10,000 $10,000
Period Ended 12/31/95 $12,009 $13,758 $11,533
FYE 12/31/96 $13,741 $16,917 $12,000
FYE 12/31/97 $16,020 $22,560 $12,944
FPE 06/30/98 $17,164 $26,556 $13,394
</TABLE>
<PAGE>
Appendix to Electronic Format (continued) Page 4 of 5
WRL Series Fund. Inc.
Page 23 (graph 11) Mountain graph depicting the change in value of a $10,000
investment in the 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
Period Ended 12/31/95 $12,065 $12,028
FYE 12/31/96 $14,176 $14,294
FYE 12/31/97 $16,306 $18,464
FPE 06/30/98 $17,030 $21,175
Page 25 (graph 12) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Financial Times World Index (FT) and the Lehman Hutton Bond
Index ( LH ) over the same time frame.
<TABLE>
<CAPTION>
Portfolio FT Index LH Index
<S> <C> <C> <C>
Inception 5/1/96 $10,000 $10,000 $10,000
Period Ended 12/31/96 $10,608 $10,473 $10,811
FYE 12/31/97 $10,972 $11,858 $12,421
FPE 06/30/98 $12,112 $13,610 $13,199
</TABLE>
Page 27 (graph 13) Mountain graph depicting the change in value of a $10,000
investment in the 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
Period Ended 12/31/96 $11,319 $11,500
FYE 12/31/97 $14,153 $15,337
FPE 06/30/98 $15,028 $18,054
Page 29 (graph 14) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Morgan Stanley Capital International (EAFE) Index, and the
Moragn Stanley Capital International World (excl. United
States) Index over the same time frame.
<TABLE>
<CAPTION>
MSCI MSCI
Portfolio (EAFE) (exc. US)
<S> <C> <C> <C>
Inception 1/2/97 $10,000 $10,000 $10,000
Period Ended 12/31/97 $10,750 $9,993 $10,018
FPE 06/30/98 $12,663 $11,104 $11,118
</TABLE>
Page 31 (graph 15) Mountain graph depicting the change in value of a $10,000
investment in the 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 1/2/97 $10,000 $10,000
Period Ended 12/31/97 $12,701 $13,336
FPE 06/30/98 $14,523 $15,698
<PAGE>
Appendix to Electronic Format (continued) Page 5 of 5
WRL Series Fund. Inc.
Page 33 (graph 16) Mountain graph depicting the change in value of a $10,000
investment in the 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 1/2/98 $10,000 $10,000
Period Ended 06/30/98 $9,591 $11,771
Page 35 (graph 17) Mountain graph depicting the change in value of a $10,000
investment in the 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 5/1/98 $10,000 $10,000
Period Ended 06/30/98 $9,785 $9,561
