WRL Series Fund, Inc.
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Annual Report
December 31, 1997
February 1998
ACC00001 (2/98)
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FELLOW CONTRACT AND POLICY OWNERS:
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JOHN R. KENNEY
CHAIRMAN OF THE BOARD
"INVESTMENT SUCCESS IS USUALLY, AFTER ALL, THE VICTORY OF LONG-TERM FAITH OVER
SHORT-TERM FEAR."
It was another great year for the markets, at least by the numbers. The Dow
Jones Industrial Average posted its third straight year of double-digit returns,
a splendid advance of 22.6% (which means, by the way, the blue-chip average has
more than doubled since 1994), while the much broader S&P 500 racked up an even
more amazing gain of 33%. Smaller cap indexes like the NASDAQ Composite and the
Russell 2000, too, picked up more than 20% for the year. All of these numbers
are, of course, well above historical average annual returns.
So why then, with all of this cheerful news, are so many folks on the Street
sounding so cheerless? Because, we suspect, the sport of investing simply wasn't
much fun by year end. Indeed, three year's worth of giddiness faded in the
fourth quarter. Stocks zigzagged wildly, including a record one-day point drop
in the Dow, as investors nervously watched the vaunted Asian "miracle" virtually
unravel.
That's not to say the long-term bull case for financial assets was overwhelmed.
It wasn't. We remain undeniably at an amazing point in our economic history,
still reaching, in fact, for superlatives to describe the combination of low
inflation, strong earnings, and global capitalism. At the same time, though, to
assume the markets are immune from the economic ills now troubling Asia would
be a mistake. At the least, a degree of uncertainty is at hand for the stock
market.
With the reemergence of real and potentially significant volatility, this looks
like a good time for all of us to conduct a reality check on our expectations.
Also, given that we're all most likely a bit spoiled, the biggest challenge in
the near term may be accepting far less robust returns than those to which
we've grown accustomed. As much as any time over this incredible bull run, we
need to be focusing our attention on the long term -- what holdings could be
worth 10 or 20 or 30 years from now -- rather than the coming months.
Investment success is usually, after all, the victory of long-term faith over
short-term fear.
In the meantime, professional investors are finding great reasons to like the
financial markets. On the following pages, the WRL Series Fund, Inc. portfolio
managers share their perspectives on investing and discuss how they have
responded to this period's changes and why. We encourage you to take the time
to review these reports in order to better understand your investment and its
performance. Knowing your Portfolio can only make you a smarter investor. And
smart investors are more likely to stick to their long-term investment
horizons.
Helping to that end, we hope, will be the addition of a new option to the WRL
Series Fund -- the Third Avenue Value Portfolio, managed by EQSF Advisers, Inc.
With the Third Avenue Value Portfolio, we gain access to both an important
segment of the stock market and one of the industry's most respected money
managers, Martin Whitman. Make sure to ask your representative about the Third
Avenue Value Portfolio with respect to your financial plan.
We're of a mind to think this recent turmoil in the market is some sort of
character building exercise -- the perfect medicine, perhaps, for an impetuous
bull market with an invincibility complex. For that reason there may be cause
for greater optimism now than even a few weeks ago. 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. We respect your personal task of
financial planning and appreciate the opportunity to assist you.
Sincerely yours,
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John R. Kenney
CHAIRMAN OF THE BOARD
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TABLE OF CONTENTS
PAGE
Chairman's Letter ......................... 1
Report of Independent Accountants ......... 3
WRL SERIES FUND, INC.
PORTFOLIO MANAGER'S COMMENTARY:
Money Market Portfolio .................. 4
Bond Portfolio .......................... 6
Growth Portfolio ........................ 8
Global Portfolio ........................ 10
Strategic Total Return Portfolio ........ 12
Emerging Growth Portfolio ............... 14
Aggressive Growth Portfolio ............. 16
Balanced Portfolio ...................... 18
Growth & Income Portfolio ............... 20
Tactical Asset Allocation Portfolio ..... 22
C.A.S.E. Growth Portfolio ............... 24
Global Sector Portfolio ................. 26
Value Equity Portfolio .................. 28
International Equity Portfolio .......... 30
U.S. Equity Portfolio ................... 32
SCHEDULE OF INVESTMENTS:
Money Market Portfolio .................. 34
Bond Portfolio .......................... 36
Growth Portfolio ........................ 38
Global Portfolio ........................ 41
Strategic Total Return Portfolio ........ 45
Emerging Growth Portfolio ............... 49
Aggressive Growth Portfolio ............. 54
Balanced Portfolio ...................... 56
Growth & Income Portfolio ............... 59
Tactical Asset Allocation Portfolio ..... 61
C.A.S.E. Growth Portfolio ............... 64
Global Sector Portfolio ................. 66
Value Equity Portfolio .................. 69
International Equity Portfolio .......... 71
U.S. Equity Portfolio ................... 77
Statements of Assets and Liabilities ..... 82
Statements of Operations ................. 85
Statements of Changes in Net Assets ...... 88
Financial Highlights ..................... 93
Notes to Financial Statements ............ 100
Supplementary Information ................ 110
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.
W R L S e r i e s F u n d , I n c .
2
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WRL SERIES FUND, INC.
----------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and
Shareholders of the WRL Series Fund, Inc.
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the portfolios constituting
WRL Series Fund, Inc. (hereafter referred to as the "Fund") at December 31,
1997, the results of each of their operations, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1997 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
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PRICE WATERHOUSE LLP
Kansas City, Missouri
January 30, 1998
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WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
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PORTFOLIO COMPOSITION
December 31, 1997
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MATURITY COMPOSITION
December 31, 1997
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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
For the year ended December 31, 1997
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Throughout 1997, the U.S. economy continued to grow at above trend levels.
Unemployment moved to cyclical lows while income, consumption, and confidence
measures generally remained robust. In spite of an ongoing drift upward in
wages, inflation at both wholesale and retail levels remained remarkably benign.
During the first quarter, interest rates rose all along the yield curve due
to strong growth in GDP, employment, retail sales, and new housing starts. The
second and third quarters saw U.S. bond markets react favorably to an
environment that combined slower economic growth, low unemployment, and benign
inflation, thus allowing rates to ease back to previous levels. While the U.S.
economy continued to exhibit strong growth and moderate inflation in the fourth
quarter, the volatile Asian markets in November and December caused a "flight to
quality" with many investors. With that, yield on the 30-year Treasury bond
dropped to just below 6% at year end, its lowest level in more than four years.
During the first half of the year, the Portfolio's performance was enhanced
by re-entering the Japanese CD market, active duration management, allocations
to short-term floating rate asset-backed instruments, and longer-term agency
securities. We avoided the short end of the yield curve in the second half of
the year and extended the Portfolio's average life in order to take advantage of
year-end pressures.
We plan to maintain the Portfolio's average life within the 60
days-to-maturity range. At this time, we believe the Federal Reserve is likely
to remain on hold throughout 1998 in light of the continued weakening currency
and economic conditions throughout Asia.
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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 or guaranteed by
the U.S. Government and there can be no assurance that the Portfolio will be
able to maintain a stable net asset value of $ 1.00 per share.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
BOND PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
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COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE WRL SERIES FUND,
INC. BOND PORTFOLIO AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
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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
For the year ended December 31, 1997
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The U.S. bond market went through two distinct periods over the last twelve
months, essentially the result of two different economic backdrops -- a strong
economy during the first half of the year followed by more moderate growth
toward year end. Throughout it all, however, the 30-year U.S. Treasury bond
stayed within a relatively narrow trading band. The long bond closed the year
under 6% after reaching a high of 7.17% in mid-April.
In this environment, the Bond Portfolio produced a total return of 9.16%
for the full year ended December 31, 1997. For the same period, the Lehman
Brothers Government/Corporate Bond Index gained 9.77%.
Late in 1996 and continuing into 1997, domestic growth picked up rapidly
and yields rose. With any spike in growth, the threat of inflation -- real or
perceived -- takes on increased relevance, and this year was no exception. To
stem any potential inflationary pressures, the Federal Reserve raised rates by
25 basis points late in March. Keeping inflation low is the Federal Reserve's
number one priority, and its preemptive strike served to keep it in check.
Following the rate hike, the U.S. economy moved into a "Goldilocks
Scenario," where everything seemed just right. Economic growth was solid with
little to no-inflation, low unemployment, and robust corporate earnings. While
growth moderated slightly, inflation remained subdued and the Federal Reserve
stayed on the sidelines.
More recently, the growing turmoil in the Far East and other emerging
markets induced international volatility, sending global stock markets
dramatically lower. The devaluation of Southeast Asian currencies creates the
very real possibility that deflationary pressures will become global. Amidst
these growing global fluctuations, many investors were prompted to seek safe
haven in quality issues. U.S. Treasuries, of course, are seen as one of the
safest investments in the world, and the 30-year bond was a direct beneficiary
of this flight to quality.
Our economy remains highly sensitive to any movement in interest rates,
which reflects a more efficient environment. An uptick in rates acts as a
braking mechanism on growth. And conversely, the economy quickly perks back up
when rates drop. Technological advancements have allowed companies to operate
more efficiently and they can now respond quickly to economic changes. That is
what we are experiencing now -- a truly efficient economy that is enjoying the
benefits of a broad increase in productivity. This has generally helped control
inflation and explains why the economy remains so sensitive to the rate
movements.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Ronald V. Speaker Sandy R. Rufenacht
Bond Portfolio
Co-Portfolio Managers
On January 13, 1997, Mr. Speaker settled a Securities and Exchange Commission
administrative action involving two personal trades made by him in January of
1993. Without admitting or denying fault, Mr. Speaker agreed to a civil money
penalty, disgorgement of profits, and interest payments totaling $ 37,199, and
to a 90-day suspension starting on or about January 27, 1997.
This material must be preceded or accompanied by the Fund's current prospectus.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
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COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE
WRL SERIES FUND, INC. GROWTH PORTFOLIO AND THE STANDARD & POOR'S INDEX
OF 500 COMMON STOCKS
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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
For the year ended December 31, 1997
----------------------------------
For the full year ended December 31, 1997, the Growth Portfolio posted a
gain of 17.54%. By comparison, the Standard & Poor's Index of 500 Common Stocks
was up 33.36% while the NASDAQ Composite gained 22.14%.
Towards the end of the year, Southeast Asia became the focal point for
markets around the globe, injecting substantial, and at times unsettling,
volatility into equities worldwide. At home, the growing Asian downturn raised
new concerns about corporate earnings, and selling became pronounced. In this
environment, the Dow Jones experienced its worst single-day point decline ever,
a 554-point drubbing on October 27. Markets around the world moved lower, and
most established markets actually experienced true corrections.
The ensuing global flight toward quality benefited the U.S. Treasury
market, where long-term yields fell from 6.40% to 5.92% -- a substantial
decline by any measure. Domestic equities, in turn, drew strength from falling
interest rates, and many investors treated the decline as a buying opportunity.
The rebound, however, was limited in scope. Large multinationals essentially
drove the S&P 500 towards year end, and as a result, most other indexes
underperformed this benchmark for the fourth quarter.
The Growth Portfolio, for its part, remains focused on a wide variety of
companies, including those in technology, telecommunications, pharmaceuticals,
healthcare, financial services, and selected retailers. Ultimately, we look for
companies that are benefiting from broader demographic trends, both here and
abroad. With Asia's escalating crisis, the follow-through effects will most
likely become more intense in the coming months, so we've focused on
well-established companies with dominant business franchises.
In the technology area, I've zeroed in on what I believe to be blue-chip
companies with predictable earnings streams that should not be impacted by
Asia's turmoil. Microsoft Corporation has been a longtime favorite of mine, and
remains a core position in the Portfolio. We also hold Dell Computer Corporation
which, despite reporting record earnings, finished the period lower on concerns
over the Far East. More recently, I was able to use the technology sector's
weakness to add or increase several positions, including America Online, Inc.
and Cisco Systems, Inc. We also held several high-quality pharmaceutical
manufacturers, including Warner-Lambert Company, Eli Lilly and Company, and
Pfizer, Inc. These companies have either launched or are rolling out several
exciting new products with what appears to be exceptional sales potential.
While we had many strong performers, we did have some disappointments,
Oxford Health being the most significant. Two weeks prior to the company's
earnings announcement, we met with the company's top management and did a
thorough review of the company. Despite asking all the right questions, we
obviously received the wrong answers, and I sold the position at a loss.
As we enter 1998, certain risks persist in world markets, including the
threat of renewed currency devaluations in either China or Brazil. A devaluation
in either country would potentially create a "spiraling" effect, triggering a
renewed currency crisis that would be detrimental to world growth. Domestically,
the hit to GDP from Asia's downturn should act as a brake on the economy,
reining in any inflationary pressures. This should be good news for equities.
But pricing power remains weak for most of "Corporate America" and rising labor
wages continue to pressure margins at many companies. The current danger is that
a slowdown in the global economy will inevitably work its way back to some U.S.
companies. In this kind of a less-robust environment, however, I believe that
superior companies with exceptional earnings will be awarded a premium or
scarcity value. We've focused our assets on a variety of high-quality companies
where we are very confident in future earnings, and as a result, I am positive
on the Growth Portfolio's prospects going into the new year.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Scott W. Schoelzel
Growth Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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
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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
For the year ended December 31, 1997
----------------------------------
The continued uncertainty in Asia injected greater volatility into
international markets, catching even U.S. and European stocks in a growing
downdraft while most established markets experienced a true correction. For the
full year ended December 31, 1997, the Global Portfolio posted a gain of 18.75%.
By comparison, the Morgan Stanley Capital International World Index returned
16.22% for the same period.
The fourth quarter created an especially difficult environment for global
investors as Southeast Asia's uncertainty impacted markets around the world.
Japan's markets, too, came under severe pressure. The country's banking system
already suffers from significant structural problems, and with extensive
outstanding loans to Asian nations, solvency and bad debt issues now appear very
real. Japanese officials, meanwhile, have failed to enact meaningful legislation
to properly stimulate their economy.
While our Japanese exposure proved to be a drag on performance, our
underweighting in this area along with emerging markets helped the Portfolio's
relative returns. We've been underweighted in these areas for well over a year,
simply because we were unable to find many compelling ideas on a fundamental
basis. Conversely, we've been overweighted in European stocks for some time and
this has helped performance. We continue to emphasize classic growth stories and
an assortment of restructuring ideas across the Continent.
The Portfolio had a number of bright spots, and European financials were
indeed among our top performers. A wave of consolidation is sweeping through
European financial services companies and this is creating new interest in a
number of our holdings. Swiss Life, a standout, was rumored to be a takeover
candidate, and Union Bank of Switzerland announced a merger with Swiss Bank. We
also scored good returns with Cap Gemini SA and Atos SA, two French information
technology companies. In the life-sciences sector, Akzo Nobel N.V., a German
chemical company, continues to transform itself, focusing on the much
higher-margin pharmaceuticals business while exiting chemicals, which tend to
be more cyclical in nature.
The recent market volatility, especially in the technology sector, offered
excellent long-term entry points into several stocks. Due to fierce selling, we
were able to add Microsoft Corporation and Cisco Systems, Inc. at attractive
valuations. Both appear well insulated from the Asian downturn and should enjoy
tremendous long-term earnings potential.
Going into the new year, I am cautiously optimistic. Volatility will in all
likelihood remain high as Asia's aftershocks become more fully understood. We've
already seen the initial affects begin to emanate to both Japan and China, and
the situation in the Pacific Rim remains tenuous. We plan to take a first-hand
account of the situation there in the very near future. In Europe, interest
rates remain favorable and a strong wave of restructuring and consolidation
continues to sweep across European companies, unlocking shareholder value and
creating some compelling opportunities. Looking elsewhere, we remain cautious
towards many emerging markets. Although valuations have certainly become
compressed, risk levels remain high relative to the potential gains. We will
weigh each investment opportunity carefully before investing in these areas.
Overall, this will be an interesting time for patient, disciplined
investors who are careful in their purchases and pursue individual stocks that
are trading attractively. Intense, fundamental analysis has been the basis for
our investment decisions in the past, and I believe it will serve us well going
forward.
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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.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (A)
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
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WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (A)
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
The Strategic Total Return Portfolio is managed using a total return
approach which emphasizes capital appreciation and income generation. In order
to attain the desired risk/reward profile, the Portfolio invests in a blend of
equities, fixed-income securities, and cash. The Portfolio's asset mix at year
end was 59.1% stocks, 14.4% convertible securities, 15.5% corporate bonds, 9.8%
Treasuries, and the remainder in other assets and liabilities. For the year
ended December 31, 1997, the Strategic Total Return Portfolio generated a total
return of 21.85%. By comparison, the Standard and Poor's 500 Index of Common
Stocks gained 33.36% and the Lehman Brothers Government/Corporate Intermediate
Bond Index returned 7.87% for the same period.
Exceptional gains in the Portfolio's equity holdings proved once again to
be the key to its performance while bond investments played an important role in
managing volatility. In fact, our bond component noticeably dampened the adverse
impact of the difficult stock market environments during June and October. In
addition, the fixed-income segment provides approximately two-thirds of the
Portfolio's investment income while representing only about one-third of assets.
Throughout most of 1997, the Portfolio offset its normal underweighted
position in the technology and communication sectors by emphasizing consumer,
financial, and healthcare stocks, all of which proved to be among the year's
most robust performers. While energy-related stocks retreated from their recent
highs during the second half, the group will continue to play an important role
in the Portfolio given its attractive total return characteristics. Our
long-time commitment to select Real Estate Investment Trust (REIT) investments
paid off once again with Crescent Real Estate Equities Company and Starwood
Lodging Trust each appreciating over 50%. While the Portfolio is committed to
the future prospects of a number of stocks of mid-sized companies, significant
exposure to the blue chip stocks of large companies boosted performance last
year. Our large-company winners included Procter & Gamble Company, General
Electric Company, Schering-Plough Corporation, and Mellon Bank Corporation.
With a nearly ideal backdrop of falling interest rates and moderate
economic growth, 1997 witnessed a number of financial market records being
broken. For example, merger and acquisition activity -- an ongoing theme in the
Portfolio -- surged to new highs for the third consecutive year with just shy
of $1 trillion in transactions. We expect the trend of rapid consolidation to
continue across many industries. Meanwhile, a stunning 629 initial public
offerings, the second largest number ever behind 1996, were at least partially
responsible for diluting investor focus among stocks of small and mid-sized
companies, despite their superior long-term growth prospects and attractive
valuations.
As we look out to next year, wage pressures seem to be the only
inflationary hurdle amidst an otherwise optimistic environment for bond yields.
At the same time, global deflationary pressures emanating from the economic
turmoil in Southeast Asia stand to threaten the unprecedented tenure of rising
corporate profitability in the U.S. As the stock market weighs the positive
implications of lower interest rates versus a more challenging earnings growth
environment, a high degree of stock market volatility in 1998 is likely. In any
event, the Strategic Total Return Portfolio, with its disciplined philosophy of
controlling potential risk through a blend of asset classes and a focused
security valuation methodology, we believe should be well suited to perform in
most market environments.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Luther King Scot C. Hollmann
Strategic Total Return Portfolio
Co-Portfolio Managers
(a) Prior to May 1, 1997, this Portfolio was named Equity-Income Portfolio.
This material must be preceded or accompanied by the Fund's current prospectus.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
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WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
For the full year ended December 31, 1997, the Emerging Growth Portfolio
returned 21.45%, while the Standard & Poor's Index of 500 Common Stocks gained
33.36%. The Portfolio, despite its impressive absolute performance, trailed most
of the popular indexes as the market seemed to prefer larger, consistent-growth
companies rather than our small- and mid-capitalization high-growth companies.
In that regard, fully 53% of the 500 companies in the Montgomery index of
fastest growing small companies were actually down for the year.
It was a roller-coaster year for the Portfolio with strong performance in
the second and third quarters, and relatively poor performance in the first and
fourth. This mirrored the performance of small-company valuations relative to
larger ones throughout the year. The best performing group for the Portfolio was
finance, while cyclical stocks were the worst. The best performing and worst
performing stocks, however, have come from many different sectors. For example,
the Portfolio's best performers during the year included Dell Computer
Corporation, Yahoo! Inc., Halter Marine Group, Inc., Chancellor Media
Corporation, and US Airways Group, Inc. No group seems to be able to maintain a
leadership role for any extended period of time.
The investment style employed in the Emerging Growth Portfolio is a
bottom-up approach which focuses on stock selection. We attempt to control risk
in the Portfolio, which usually remains fully invested, by maintaining a broadly
diversified list of issues. The style remains consistent in any market
condition. Stocks are selected for purchase based on meeting two key criteria:
rising earnings expectations and improving valuations. A position would be sold
immediately if earnings expectations fall, and very quickly if the valuation
declines. The approach attempts to identify the best performing high-growth
companies that the market is rewarding with a higher stock price.
The market's overall level of uncertainty generally determines how emerging
growth stocks are treated. When fear rises, the market tends to seek "safe
haven" stocks, and avoid the type of stocks held in the Portfolio. When
confidence returns, however, the market seeks the typically higher returns
available from emerging growth companies. Lately, emotional swings in the market
have been occurring at a seemingly accelerated pace which has enhanced market
volatility. This trend seems unlikely to change near-term. Meanwhile, emerging
growth stock valuations are at the bottom of their historic range when compared
to larger companies and should be considered very attractive for investors. All
together, emerging growth stocks should do very well once market uncertainty
lessens, but 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.
1 9 9 7 A n n u a l R e p o r t
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WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
16
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
While 1997 resulted in strong performance for the U.S. stock market in
general, the road was not a smooth one, especially for growth stocks. In a
period when large caps outperformed small caps, value significantly outperformed
growth, and technology stocks underperformed defensive sectors, we were
satisfied with the Portfolio's annual return. For the full year ended December
31, 1997, the Aggressive Growth Portfolio returned 24.25%. By comparison, the
Standard & Poor's Index of 500 Common Stocks advanced 33.36% and the Value Line
(Arithmetic) Index gained 24.94% for the same turbulent, yet prosperous, period.
During the first quarter, investors shunned aggressive growth stocks amid
speculation that the Federal Reserve would find it necessary to raise interest
rates. As these fears subsided and investor confidence increased during the
second quarter, however, the relatively favorable multiples of growth stocks
attracted investors. This trend not only continued during the third quarter, but
became even more pronounced as a non-inflationary, low interest-rate environment
further boosted investor confidence and increased the amount of risk they were
willing to assume. Despite the unemployment rate reaching a 24-year low of 4.7%,
inflation dropped throughout the year. This phenomenon led to the theory that
there was a new economic paradigm -- one that allowed for rapid economic
expansion without inflation due to improved productivity. Although promptly
rebutted by Federal Reserve Chairman Alan Greenspan, this highly publicized
viewpoint helped foster the optimistic investor psychology that fueled the rise
in growth stocks.
But during the fourth quarter, incidents of international economic
catastrophe led to a heightened sense of domestic uncertainty, as evidenced by
the historic 554-point drop in the Dow on October 27th. Technology stocks,
particularly the semiconductors, with considerable business in Asia were among
the hardest hit. Currency collapses and subsequent banking failures throughout
the Pacific Rim caused investors to question the ability of U.S. companies
dependent on this region for revenue to meet future earnings expectations. With
all of this triggering a return to defensive equity investing, the broad
market's ultimate recovery was dominated by blue-chip stocks and utilities,
leaving the S&P 500 to outdistance other market indexes and growth stocks in
general.
In an effort to achieve optimal return, the Aggressive Growth Portfolio
employed several different strategies over the course of 1997. For example, the
Portfolio tended to be overweighted in large-cap stocks during this period
relative to other years, its weighted-average market cap exceeding $ 30 billion
most of the year. An overcommitment in pharmaceutical stocks also helped buoy
performance. And while a large technology position drove performance in the
third quarter, the position was drastically reduced as we sold off those stocks
we felt would be most impacted by the Asian crisis.
Looking ahead, low inflation and the fear that a stronger dollar may
further hurt already debilitated Asian nations will likely prevent the Federal
Reserve from raising interest rates in the near future. Additionally, we feel
the economy will slow, leading to modest earnings growth in 1998.
Price-to-earnings ratios, however, could reach very high levels due to the lack
of inflation and lower interest rates. All together, assuming stocks only trade
at normal multiples and that our bottom-up forecast of earnings is accurate, the
Dow could rise to around the 9000 level next year. Given this, we are still
bullish on stocks, especially domestic growth stocks with their favorable
valuations.
[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.
1 9 9 7 A n n u a l R e p o r t
17
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
18
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
For the full year ended December 31, 1997, the Balanced Portfolio provided
a 17.10% total return. By comparison, the Standard & Poor's Index of 500 Common
Stocks gained 33.36% and the Lehman Brothers Government/Corporate Intermediate
Bond Index was up 7.87% for the same period. The Portfolio's asset allocation at
year end was 55.8% in common stocks, 10.5% in preferred stocks, 33.0% in bonds,
with the remainder in other assets and liabilities. As in the past, no
derivatives were used during the period.
The strongest performing stocks in the Portfolio this year included
Computer Associates International, Inc., Norwest Corporation, Wal-Mart Stores,
Inc., Lucent Technologies, Inc. and Allstate Corporation. Those that
underperformed and provided the most disappointing results were all mid-cap
holdings -- Colonial Downs Holding, Inc., Mego Mortgage Corporation, and Fruit
of the Loom, Inc.
The bond allocation of the Portfolio provided above-benchmark returns for
the year. Strong performance came from the longer maturity issues among U.S.
Treasury holdings as the yield curve shifted down. At year end, our bond
position averaged 11.53 years to maturity with a duration of 7.94 years and an
average coupon of 6.3%.
The currency and economic crisis in Asia was the major event of the fourth
quarter and may be the driving factor for the market in 1998. On October 27, in
response to crisis conditions in Hong Kong, the Dow Jones Industrials
experienced one of the sharpest one-day drops ever with the Average falling 554
points. As has typically been the case during the decade, investors initially
took the large drop as a buying opportunity; and in the subsequent weeks the Dow
rallied almost a thousand points. What was more indicative of the market,
however, was the action of the NASDAQ Composite which rose only half as much as
the Dow in December and at the year end was only 2.4% above its October 27 low.
We continue to be concerned with the problems in Asia and their potential
impact on the U.S. markets. We're also aware of the very deflationary drop in
the price of gold. While the common analysis has been that central banks are
lowering their exposure to this underperforming asset, we believe gold's steep
decline reflects an overly restrictive monetary policy in the U.S. Indeed, the
stubbornly high short-term rates in the U.S. have likely accentuated the
problems in Asia. Recent comments from Federal Reserve Chairman Greenspan seem
to suggest that he is aware of the problem, however, and the 30-year bond has
moved to all time highs.
All together, our current opinion of the financial markets, especially
bonds, is positive. With regard to equities, we're optimistic that the surge in
mutual fund purchases that typically occurs in the first quarter will reoccur
this year. We believe that this, together with a virtual absence of new equity
supply (underwritings), should move stocks higher. As far as the economic
problems overseas, we believe they will stay there as long as there are no
negative changes to U.S. monetary, tax, international trade, or budgetary
policies. Corporate earnings, however, may be negatively impacted by the turmoil
flowing from Asian currency markets.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Michael Van Meter
Balanced Portfolio
Portfolio Manager
This material must be preceded or accompanied by the Fund's current prospectus.
1 9 9 7 A n n u a l R e p o r t
19
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (a)
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
20
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (a)
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
For the full year ended December 31, 1997, the Growth & Income Portfolio
provided a total return of 24.65%. This compares favorably to the 24.3% of the
Lipper General Equity Fund Average of U.S. equity funds and the 17.5% for the
Lipper All Equity Fund Average of U.S., U.S. sector funds, and global funds. The
Russell 3000 gained 29.47% for the same period. The Standard & Poor's Index of
500 Common Stocks gained 33.36% for the year.
It was a transition year for the Portfolio, which on May 1 officially
changed from what had been the Utility Portfolio to the Growth & Income
Portfolio. We spent most of the summer restructuring the portfolio, and the
results have been gratifying. Since August 1, on days of "market stress" (15
dates), the Portfolio has, on average, declined only 25% as much as the overall
stock market. Furthermore, the Portfolio returned 9.44% in the fourth quarter
compared to 2.87% for the S&P 500 and 1.94% for the Russell 3000.
Our strategy continues to be highly defensive. Current allocations include
24% in real estate investment trusts, 15% in electric utilities, and 13% in gas
utilities. Given our discipline toward buying stocks at reasonable prices, we
have allowed cash equivalents and short-term U.S. Treasury notes accumulate to
27% of the portfolio as stock prices continued to rise last year. Stocks, in
fact, rose for a record third straight year in excess of 20%. Meanwhile, we
continue to look for opportunities to add stocks to the Portfolio.
The net result of the year's changes is performance that beat many other
funds and portfolios for the year and handily beat the S&P 500 in the fourth
quarter. Yet, the Portfolio has a beta of only .32. With all of that, we are
optimistic about the prospects for the Growth & Income Portfolio for 1998.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Steven J. Lehman Linda A. Duessel
Growth & Income Portfolio
Co-Portfolio Managers
(a) Prior to May 1, 1997, this Portfolio was named Utility.
This material must be preceded or accompanied by the Fund's current prospectus.
1 9 9 7 A n n u a l R e p o r t
21
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
22
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
For the full year ended December 31, 1997, the Tactical Asset Allocation
Portfolio returned 16.59%, a bit better than the Lipper index of
similarly-managed mutual funds, but lagging a 60/40 blend of the Standard &
Poor's Index of 500 Common Stocks and the Lehman Brothers Government/Corporate
Intermediate Bond Index. These numbers suggest that the majority of fund
managers appear to be trailing the market indexes in this particular market
environment. Indeed, the recent strength in the S&P 500 has been driven by a
relatively small number of "mega-cap" stocks -- essentially, the largest
companies with the largest capitalizations and highest amount of market
liquidity. Meanwhile, funds and portfolios which have emphasized small- and
mid-cap names have lagged. Only a manager emphasizing price momentum will have
concentrated on the "mega-caps" and out-performed in the recent market
environment.
Our philosophy is to adhere to a value discipline. Companies are
scrutinized for their growth potential, market positioning, and strategic
planning, but only companies with lower and/or reasonable valuations (i.e.,
price to earnings, price to cash flow, price to book value) are candidates to be
included in the Portfolio. Research has revealed that over a series of market
environments, a disciplined approach that emphasizes value will be competitive
with other investment management philosophies. While we are not critical of
"mega-cap" stocks, they are simply too expensive, based on our criteria, to be
appropriately included in the Tactical Asset Allocation Portfolio.
In our view, the current market environment is likely to remain positive
for bonds and for the more "interest-rate-sensitive" sectors of the stock
market. The valuations on many of these securities are quite compelling, and the
exposure to overseas uncertainties is limited. Finding a "safe harbor" for
assets during 1998 is likely to be a dominant theme in what we feel is a highly
uncertain, volatile stock market -- one that is characterized by dampened growth
expectations and valuations well ahead of historical norms. Our top investment
objective is preservation of client capital. By investing in the fixed-income
markets, and by maintaining a prominent exposure to high-yielding "defensive"
stocks we feel this objective should be achieved.
Our allocation to stocks was 59% at mid-year, which we consider a "neutral"
positioning. As the year progressed, our models proposed an even more cautious
outlook for the intermediate term, and we reduced the Portfolio's equity
allocation to 52% by year end. Some positions reached full valuations and were
sold, while others were simply reduced in line with the revised equity targets.
Within the equity sector, we significantly rotated our industry weightings to
emphasize real estate investment trusts and electric utilities, both of which
are expected to provide greater price stability and a healthy dividend yield,
and are more likely to outperform in an uncertain market. The Portfolio's
exposure to technology stocks and companies that manufacture "commodity"
products such as chemicals and metals was reduced. These firms are more
vulnerable to deflation pressures, as well as an economic recession in Southeast
Asia, factors which may lead to earnings disappointments in the near term.
Our stock selection process and asset allocation models have provided
relatively stable long-term 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.
1 9 9 7 A n n u a l R e p o r t
23
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
24
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
With interest rates and inflation at historic lows, Main Street seemed to
completely ignore the overpriced precautionary warnings coming from Wall Street.
Most of the blue-chip growth stocks sold at two to three times their long-term
historical levels and even the smallest earnings disappointments were greeted
with reactionary price declines. While many of these Fortune 500 companies have
become astute at managing and measuring their growth rates, economic
imponderables, like the recent monetary realignments in the Far East, are almost
impossible to forecast. Thus, investors acted in an uncertain ritual, ready to
pounce as these events slowly spiraled through the balance sheets of US-based
multinational companies. Going forward, the slowdown in Asia may cause many
overpriced companies to report lower than expected earnings in the second
through the fourth quarter of this year.
Within this environment, the C.A.S.E. Growth Portfolio returned 15.03% for
the year ended December 31, 1997. By comparison, the Standard & Poor's Index of
500 Common Stocks gained 33.36% and the Wilshire 5000 Index gained 29.17% for
the same period.
Our philosophy is to look for stocks of fundamentally strong companies with
above-average growth characteristics that are steeply discounted to their
historical valuations. In the beginning of the year, we put greater strategic
emphasis on what are generally described as growth stocks as opposed to those
usually considered value stocks. This policy proved wise and the Portfolio's
performance exceeded that of the broad market's results through late in the
third quarter. The Portfolio was hit hard for the remainder of the year,
however, by the drop in crude oil prices and the fallout from the Asian crisis.
These kinds of economic events simply can't be predicted with any real accuracy.
At this point, the markets are in the midst of several particularly pivotal
circumstances. In an unprecedented ninth year of an expansionary economy, we
find a market selling at the extreme optimistic end of its price range. Any
sustainable negative economic event could drive this market down thirty percent
to the low end of its confidence range. To defend against these uncertainties,
we choose to blend both the growth and value styles of investing. We do this
because value stocks can help offer a measure of downside market protection,
which is often missing from the high-process, high-momentum, high-growth rate
method of investing. C.A.S.E. Management is a firm of analysts, managers,
mathematicians, and computer scientists who go to extraordinary lengths to build
portfolios that participate in a wide range of market conditions.
To our knowledge, no firm or individual has yet managed to time the markets
successfully for more than brief periods of time. The performance which we feel
counts most is that which is achieved in 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.
1 9 9 7 A n n u a l R e p o r t
25
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO (a)
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
26
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO (a)
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
The Global Sector Portfolio follows an asset allocation and sector
rotation strategy which shifts between a wide range of asset classes and
sectors. The investment objective is capital growth. For the full year ended
December 31, 1997, the Portfolio gained 3.43%. By comparison, the Portfolio's
benchmark, which consists of a 60% weighting in the Financial Times World Index
and a 40% weighting in the Lehman Hutton Aggregate Bond Index, appreciated
13.9% for the same period. Individually, the Financial Times World Index
increased 13.22%, while the Lehman Hutton Aggregate Bond Index was up 14.89%.
While this has been a turbulent year, with the Asian currency crisis, a
strong dollar, dropping gold prices, and an overpriced U.S. stock market, we
are, nevertheless, not at all pleased with the Global Sector Portfolio's
performance this period. Unlike years past, when investing in numerous asset
classes like gold mining stocks, international stocks, international bonds, real
estate, and cash increased performance and reduced risk, 1997 marked a year in
which investing in other asset classes not only reduced performance, but also
increased risk. Indeed, the only way to outperform global benchmarks last year
was to have a significant overweighting in U.S. stocks. Since we did not, the
Portfolio's performance was negatively affected.
At the beginning of the year, our model indicated the U.S. stock market was
approximately seven to eight percent overvalued. We therefore had a significant
cash position in the first quarter of the year, which helped reduce the
Portfolio's volatility early on. But as interest rates dropped and companies
beat analysts' expectations, investors seemingly discarded valuation measures.
This caused the market to move away from us while we had a cash component within
the Portfolio. In other words, our disciplined focus on valuations cost us
short-term gains. We still believe, however, that the key is to adhere to a
strict discipline year after year in order to reap the rewards when value
investing is in vogue.
Currently, our model, which includes measurements of earnings, growth,
risk, and interest rates, indicates that the U.S. market is undervalued. This
leads us to be fully invested, with only a small cash position. At the same
time, many companies will find it hard to meet investors' expectations with the
slowing of global economic growth. Accordingly, we prefer to invest in companies
with low expectations built into their valuations.
Internationally, we believe there are several markets that look attractive.
The Portfolio has had exposure in Germany, Denmark, and Italy for some time, and
it continues to have a 11% position in Japanese equities. This has had a
negative impact on performance, but Japanese stocks are now selling at only half
the multiples at which their U.S. counterparts are trading. While we may have to
be patient, we continue to believe the Portfolio will be rewarded in 1998 by
holding Japanese stocks.
The Global Sector Portfolio has a balanced strategy which we feel will be a
plus in 1998. U.S. bonds represent a good investment opportunity and are
weighted toward the short-end of the yield curve. The yield curve in the U.S. is
relatively flat right now with the 30-year Government bond yielding just 30
basis points higher than one-year Treasury-bills. Our short maturity should
decrease the Portfolio's overall risk while supplying similar returns to
intermediate-term bonds. Bonds will remain a crucial component of a global
balanced account.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Bryan M. Ritz
Global Sector Portfolio
Portfolio Manager
(a) Prior to March 1, 1997 this Portfolio was named Meridian/INVESCO Global
Sector.
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.
1 9 9 7 A n n u a l R e p o r t
27
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
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]
W R L S e r i e s F u n d , I n c .
28
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
The Value Equity 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, in our opinion, are in
fundamentally attractive industries, and are undervalued at the time of
purchase. The Portfolio benefited from the very favorable stock market
environment through the first nine months of 1997, and despite the increased
stock market volatility in the fourth quarter -- including the largest ever
one-day decline for the Dow Jones Industrial Average of 554 points -- maintained
nearly all of its early gains. For the full year ended December 31, 1997, the
Value Equity Portfolio gained 25.04%. The Standard & Poor's Index of 500 Common
Stocks, by comparison, returned 33.36% for the same period.
The cornerstone of our investment process is a disciplined approach to
value recognition within industries representing long-term market leadership. We
seek to recognize change early in market sectors, industries, and companies
before these changes are reflected in securities prices. Our value equity
discipline serves as a complementary, risk averse style to other more aggressive
growth managers.
As Asia's currency troubles became the dominant focus of financial markets
in late October and through most of the fourth quarter, investors scrambled to
sell any company that had "Asia exposure" and buy just about any company that
was a "domestic play". During periods of panic and extreme volatility (down 550
points one day, up 330 the next certainly qualifies as extreme volatility in our
view), the stock market often passes sentence immediately, and then holds a
trial several months later to determine if the initial verdict made any sense.
In other words, shoot first, ask questions later. While it is difficult to
determine the impact the "Asian flu" will have on the U.S. economy, it is even
more difficult to foresee how it will filter down to individual companies. A
variety of companies have very different levels of exposure throughout Asia,
with different products and greatly varying levels of profitability in different
national markets.
Over the next few quarters the market should begin to reassess the initial
broad-brush approach evident in the fourth quarter. When it becomes clear that
Asian exposure represents a real issue relating to earnings levels and earnings
growth, such stocks are likely to lag the market, at least until the dimensions
of the Asian problem become more discernible. As soon as the market discovers,
as it will, that some of the victims pummeled in the first wave reaction are in
fact quite healthy, and could even benefit in the long run from Asia's troubles,
we feel the stock prices will likely rebound, in some cases sharply.
Overall, we doubt that recent developments are generally bullish. With Asia
having raised concerns about U.S. earnings growth going forward, the time for a
period of lower market returns may be at hand. More caution may, indeed, be
warranted. At the same time, the strong U.S. dollar, continued low inflation,
and the disappearing federal deficit suggest that long-term interest rates in
the U.S. should be stable or declining. This kind of favorable interest rate
background could be a major factor offsetting a more uncertain earnings outlook.
All together, we believe that while the strong bull market is likely to take a
rest until the outlook clears, there will be rewarding opportunities for
long-term investors who can withstand the passions and fears of the moment.
[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.
1 9 9 7 A n n u a l R e p o r t
29
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
COMPARISON IN CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE
WRL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO,
THE MORGAN STANLEY CAPITAL INTERNATIONAL (EAFE) INDEX, AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL WORLD (EXCL. UNITED STATES)
[GRAPHIC OMITTED]
W R L S e r i e s F u n d , I n c .
30
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO MANAGERS' COMMENTARY
For the year ended December 31, 1997
----------------------------------
From its inception January 2, 1997, through December 31, 1997, the
International Equity Portfolio produced a total return of 7.50%. By comparison,
Morgan Stanley Capital International (EAFE) Index was (0.07%), and the The
Morgan Stanley Capital International World (EX. US) Index return was 0.18%.
SCOTTISH EQUITABLE INVESTMENT MANAGEMENT LIMITED:
Despite the volatility that hit world financial markets in the fourth
quarter, equity markets on average delivered positive returns. There was,
however, a remarkable dispersion of returns between regions. To that end, the
Portfolio was positively impacted by asset allocation decisions. The
overweighted position in Europe in general and in the Netherlands and Finland
specifically proved to be most valuable. The use of currency hedges also proved
to be a significant contributor to performance over the period. In particular,
the Portfolio benefited when its exposure to Japan, Europe, and the United
Kingdom (U.K.) was fully hedged back into dollars.
Throughout the period, the Portfolio was consistently underweighted in the
Far East region -- this, of course, at a time when both the major economies and
the smaller "tiger" economies were in turmoil. Actually, given the economic
background there, it was no surprise that returns from the region's equity
markets were poor. Our underweighted position partially protected the Portfolio
from the precipitous falls in regions like Thailand, Indonesia, and Malaysia.
1997 was a very good year for European equities. The surge in share prices
across the region was fueled by several factors, including an unrestrained
monetary environment, a perception that corporate Europe is restructuring, good
earnings momentum, a strong Wall Street, and a seemingly insatiable appetite of
domestic equity investors. The FT/S&P Europe index, which excludes the UK, rose
by 41.4% in local currency terms, though for a U.S.-based investor this is
reduced to 22.7% by the weakness of the mark. The UK stock market, for its part,
performed well with the FT-SE All Share index rising by 19.7% in local terms and
by 15.1% when translated to dollars. The strength of sterling was a hindrance to
market, but the gains on Wall Street and the fall in yields proved sufficient to
offset this.
Meanwhile, Latin America markets continued to mature and develop, both
politically and financially. In politics, elections in Mexico and Argentina
provided opposition parties sufficient influence to ensure real debate in the
political process, while the financial markets benefited from the continued
development of savings vehicles across the region. Unfortunately, the region
also felt the downside of globalization as the turmoil in Asia caused a
retrenchment of the international investors from the region.
Looking ahead, the key issue is to what extent the turmoil in Asia will
damage economic growth and corporate profits elsewhere. At present, we believe
the effects will be limited but we will watch closely. 1998 will also see us
move closer to European Economic and Monetary Union (EMU), with the
participating countries announced in the spring. We anticipate few problems on
the road to EMU. As for the UK, the question is whether the sustained strength
of sterling and the five interest rate rises in 1997 will slow its economy
markedly. Our own view is that the considerable momentum in the economy means
that growth will continue to be strong and interest rates will have to rise
further.
GE INVESTMENT MANAGEMENT INCORPORATED:
Our exposure to stocks in Europe contributed favorably to performance this
period. Low inflation, corporate restructurings, and good corporate earnings
were mainly responsible for the advances there. The Portfolio also benefited
from superior stock selection in Japan. While the Japanese stock market declined
by more than 24% in 1997, our Japanese stock holdings gained over 9%. Finally,
the Portfolio had limited exposure to companies significantly affected by the
economic and currency problems that swept through Asia during the second half of
the year.
Individually, Novartis AG, the world's second-largest pharmaceutical
company, posted above-average investment results. Novartis was created as a
result of the 1996 merger between Ciba-Geigy and Santos. Last year, investors
bid up the price of the company's stock in response to the economies of scale
and the improved earnings that have resulted from this corporate marriage. NTT
Data Corporation, a leading networking, integration systems and consulting
company in Japan, turned in solid performance due to better-than-expected
earnings while Telecom Italia Mobile SpA recorded strong gains largely because
of a double-digit increase in the company's subscriber base. Total SA, a
French-based oil company, also contributed favorably to the Portfolio's
investment results. During the year, investors focused on the fact that energy
demand has been rising, but the supply of available drilling equipment has not,
enabling energy companies, such as Total SA, to command higher prices. Finally,
Airtours Plc saw its stock rise significantly as investors rewarded the UK-based
travel company for its ability to improve profit margins and reduce costs.
Looking ahead, while global markets may experience increased market
volatility due to the turmoil in Asia, the underlying fundamentals of our key
markets remain solid. In Europe, for example, low inflation, good earnings, and
corporate restructurings should continue to serve as a favorable backdrop for
stocks on the Continent. Japan's economic problems may continue to be
problematic for its stock market near term, but good companies with solid
fundamentals can still be found there
[GRAPHIC OMITTED] [GRAPHIC OMITTED] GRAPHIC OMITTED]
Malcolm Jones Ralph Layman
International Equity Portfolio
Portfolio Management
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.
1 9 9 7 A n n u a l R e p o r t
31
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
COMPARISON IN CHANGE IN VALUE OF $ 10,000 INVESTMENT IN THE
WRL SERIES FUND, INC. U.S. EQUITY PORTFOLIO AND
THE STANDARD & POORS INDEX OF 500 COMMON STOCKS
[GRAPHIC OMITTED]
W R L S e r i e s F u n d , I n c .
32
<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
PORTFOLIO MANAGER'S COMMENTARY
For the year ended December 31, 1997
----------------------------------
From its inception January 2, 1997 through December 31, 1997, the U.S.
Equity Portfolio returned 27.01%. By comparison, the Standard & Poor's Index of
500 Common Stocks gained 33.36% for the same period.
In an environment where the yield on the 30-year Treasury bond fell from
6.64% at the start of the year to 5.92% at year end, financial services
companies, an area where the Portfolio is well represented, recorded superior
investment results. That sharp decline in interest rates coupled with an ongoing
consolidation within the industry led to particularly good returns from holdings
in Morgan Stanley, Dean Witter, Discover and Co., Fannie Mae and Travelers
Group, Inc.
Healthcare issues also posted solid gains. Stocks in this sector did
particularly well when the economy's growth prospects came into question as a
result of the economic and currency crisis in Asia. Healthcare stocks on the
whole are less sensitive to economic downturns than most other industry groups.
Several of our healthcare holdings performed well, particularly the large,
blue-chip companies like Bristol-Myers Squibb Company and Johnson & Johnson.
We also enjoyed good performance from our investments in electric and
telephone utilities, which benefited from the decline in interest rates. As the
economy weakened late in the year, we increased our positions in utility stocks.
Schlumberger Limited was another exceptional performer for the Portfolio. During
the year, investors focused on the fact that energy demand has been rising but
the supply of available drilling equipment has not, which enables energy
companies to command higher prices. We believe this trend will continue well
into 1998.
In general, the foundation of the U.S. economy remains solid. Inflation,
which grew at a rate of 1.7% in 1997 -- the lowest annual rate in more than a
decade -- is still under control. Interest rates remain low and corporate
earnings are still in good shape. At the same time, though, the economic and
currency problems in Asia have investors concerned about the future earnings of
American corporations. So, all together, while companies that meet analysts'
earnings estimates should do well, companies that fall short of earnings
expectation are likely to see their values decrease markedly.
Given this backdrop, we expect above-average market volatility in the
coming months. We intend to use market declines to add to positions of
high-quality investments that meet our strict investment criteria. We will
continue to make long-term investments in what we think are financially sound,
well-managed companies with good prospects for solid earnings growth and greater
market share in their areas of operation.
[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
1 9 9 7 A n n u a l R e p o r t
33
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
-------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (7.25%)
Federal Home Loan Bank
5.96%, due 06/09/98 ....................... $ 1,500,000 $ 1,499,736
Federal Home Loan Bank
5.75%, due 01/02/98 ....................... 7,176,000 7,174,854
------------
Total Short-Term
U.S. Government Obligations
(cost: $ 8,674,590)........................................... 8,674,590
------------
COMMERCIAL PAPER (46.63%)
AUTOMOTIVE DEALERS & SERVICE STATIONS (4.95%)
British Gas Capital
5.66%, due 03/23/98 ......................... 6,000,000 5,923,590
COMMERCIAL BANKS (19.04%)
Abbey National North America
5.74%, due 03/10/98 ......................... 2,000,000 1,978,334
Abbey National Treasury Services
5.75%, due 02/05/98 ......................... 3,000,000 3,000,000
Associates Corporation of
North America
5.72%, due 03/10/98 ......................... 5,000,000 4,945,978
Cregem North America, Inc.
5.69%, due 02/23/98 ......................... 5,000,000 4,958,115
NationsBank Corporation
5.75%, due 02/23/98 ......................... 6,000,000 5,949,208
Rabobank Nederland
5.55%, due 04/29/98 ......................... 2,000,000 1,963,616
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (5.65%)
General Electric
Capital Corporation
5.70%, due 02/06/98 ......................... 6,800,000 6,761,241
FINANCE (8.28%)
National Australia Funding
Development
5.74%, due 02/18/98 ......................... 6,000,000 5,954,080
Providence of Quebec
5.61%, due 03/06/98 ......................... 4,000,000 3,960,071
PHARMACEUTICALS (8.71%)
Bayer Corporation
5.75%, due 02/24/98 ......................... 5,500,000 5,452,562
Pfizer, Inc.
5.95%, due 01/28/98 ......................... 5,000,000 4,977,688
------------
PRINCIPAL MARKET
AMOUNT VALUE
-------- ------
COMMERCIAL PAPER (CONTINUED)
Total Commercial Paper
(cost: $ 55,824,483)........................................... $ 55,824,483
------------
SHORT-TERM OBLIGATIONS (25.52%)
FINANCE (5.47%)
Asset-Backed Securities
Investment Trust (b)
5.98%, due 08/17/98 ......................... $ 2,000,000 2,000,000
Liquid Asset-Backed Securities
Trust (a)(b)
5.69%, due 06/30/98 ......................... 4,552,952 4,552,952
COMMERCIAL BANKS (20.05%)
Bank Boston NA (a)
6.14%, due 10/06/98 ......................... 5,000,000 4,997,944
Bankers Trust New York
Corporation (a)
5.83%, due 07/07/98 ......................... 1,000,000 999,448
Bayerische Landesbank -
New York (a)
5.84%, due 06/26/98 ......................... 3,000,000 2,998,874
First USA Bank (a)
6.01%, due 05/07/98 ......................... 5,000,000 5,001,528
Keybank NA (a)
6.12%, due 07/31/98 ......................... 5,000,000 4,998,026
Old Kent Bank (a)
5.65%, due 11/04/98 ......................... 5,000,000 5,000,000
------------
Total Short-Term Obligations
(cost: $ 30,548,772)......................................... 30,548,772
------------
BANK OBLIGATIONS (20.05%)
Bank of Tokyo / Mitsubishi
6.50%, due 03/04/98 ......................... 5,000,000 5,000,000
Bayerische Landesbank -
New York
5.71%, due 02/06/98 ......................... 3,000,000 2,999,914
Corestates Bank NA
5.60%, due 04/21/98 ......................... 5,000,000 5,000,000
Den Danske Bank (a)
5.92%, due 03/25/98 ......................... 5,000,000 4,999,965
Norinchukin Bank - New York
6.02%, due 02/13/98 ......................... 2,000,000 2,000,023
Rabobank Nederland N.V. - NY
5.99%, due 03/24/98 ......................... 3,000,000 2,999,679
Westdeutsche Landesbank
5.90%, due 01/12/98 ......................... 1,000,000 1,000,000
------------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
34
<PAGE>
WRL SERIES FUND, INC.
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-----------------------------
MARKET
VALUE
------
BANK OBLIGATIONS (CONTINUED)
Total Bank Obligations
(cost: $ 23,999,581)......................................... $ 23,999,581
-------------
Total Investment Securities
(cost: $ 119,047,426)........................................ $ 119,047,426
=============
SUMMARY
Investments at market value ..................... 99.45% $ 119,047,426
Other Assets in
Excess of Liabilities ....................... 0.55% 660,524
------ -------------
Net Assets ...................................... 100.00% $ 119,707,950
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Floating rate note. Rate listed is as of December 31, 1997.
(b) Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
35
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
U.S. GOVERNMENT OBLIGATIONS (35.95%)
U.S. Treasury Notes (a)
5.75%, due 10/31/02 ...................... $ 14,000,000 $ 14,007,560
U.S. Treasury Notes
5.88%, due 11/30/01 ...................... 5,000,000 5,017,750
U.S. Treasury Notes (a)
6.63%, due 05/15/07 ...................... 11,500,000 12,170,220
U.S. Treasury Notes (a)
6.13%, due 08/15/07 ...................... 15,000,000 15,411,450
------------
Total U.S. Government
Obligations
(cost: $ 46,204,797)......................................... 46,606,980
------------
CORPORATE DEBT SECURITIES (54.58%)
AUTOMOTIVE (4.84%)
Daimler-Benz of North
America, Inc.
7.38%, due 09/15/06 ...................... 2,000,000 2,135,000
General Motors Corporation
7.13%, due 05/01/03 ...................... 4,000,000 4,145,000
CHEMICALS & ALLIED PRODUCTS (2.39%)
Praxair, Inc.
6.90%, due 11/01/06 ...................... 3,000,000 3,101,250
COMMERCIAL BANKS (11.16%)
NationsBank Corporation
7.50%, due 09/15/06 ...................... 3,000,000 3,198,750
PNC Bank Corp.
6.88%, due 07/15/07 ...................... 3,000,000 3,067,500
Swiss Bank Corporation
6.75%, due 07/15/05 ...................... 2,000,000 2,045,000
Swiss Bank Corporation
7.00%, due 10/15/15 ...................... 2,000,000 2,067,500
Wachovia Corporation
6.80%, due 06/01/05 ...................... 4,000,000 4,090,000
COMPUTER & OFFICE EQUIPMENT (1.61%)
International Business Machines
Corporation
7.25%, due 11/01/02 ...................... 2,000,000 2,082,500
DEPARTMENT STORES (3.21%)
Sears Roebuck Acceptance
Corporation
7.00%, due 06/15/07 ...................... 4,000,000 4,165,000
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.57%)
General Electric
Capital Corporation
6.50%, due 11/01/06 ...................... 2,000,000 2,032,500
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (CONTINUED)
FOOD & KINDRED PRODUCTS (4.74%)
Campbell Soup Company
6.90%, due 10/15/06 ...................... $ 1,000,000 $ 1,047,500
CPC International, Inc.
6.15%, due 01/15/06 ...................... 2,000,000 1,977,500
Hershey Foods Corporation
6.70%, due 10/01/05 ...................... 3,000,000 3,120,000
MOTION PICTURES (3.18%)
Walt Disney Company
6.75%, due 03/30/06 ...................... 4,000,000 4,125,000
OIL & GAS EXTRACTION (0.78%)
Mitchell Energy &
Development Corp
6.75%, due 02/15/04 ...................... 1,000,000 1,001,250
PAINT, GLASS, WALLPAPER STORES (3.21%)
Sherwin-Williams Company
6.85%, due 02/01/07 ...................... 4,000,000 4,165,000
PERSONAL CREDIT INSTITUTIONS (3.15%)
Ford Motor Credit Company
6.75%, due 08/15/08 ...................... 4,000,000 4,085,000
PETROLEUM REFINING (1.63%)
Texaco Capital Inc.
7.09%, due 02/01/07 ...................... 2,000,000 2,115,000
PRINTING & PUBLISHING (1.60%)
Tribune Company
6.88%, due 11/01/06 ...................... 2,000,000 2,077,500
RAILROADS (0.81%)
CSX Corporation
7.25%, due 05/01/04 ...................... 1,000,000 1,046,250
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS (0.79%)
Rubbermaid, Inc.
6.60%, due 11/15/06 ...................... 1,000,000 1,023,750
SECURITY & COMMODITY BROKERS (6.26%)
Merrill Lynch & Co., Inc.
6.56%, due 12/16/07 ...................... 4,000,000 4,015,000
Morgan Stanley, Dean Witter,
Discover and Co.
6.88%, due 03/01/07 ...................... 4,000,000 4,100,000
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
36
<PAGE>
WRL SERIES FUND, INC.
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (CONTINUED)
TELECOMMUNICATIONS (1.18%)
MCI Communications
Corporation
6.95%, due 08/15/06 ...................... $ 1,500,000 $ 1,533,750
WHOLESALE TRADE NONDURABLE GOODS (2.47%)
Sysco Corporation
7.25%, due 04/15/07 ...................... 3,000,000 3,206,250
-------------
Total Corporate Debt Securities
(cost: $ 68,411,289)......................................... 70,768,750
-------------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (5.00%)
Fannie Mae
5.68%, due 01/20/98 ...................... 5,000,000 4,985,011
Freddie Mac
6.00%, due 01/02/98 ...................... 1,500,000 1,499,750
-------------
Total Short-Term
U.S. Government Obligations
(cost: $ 6,484,761).......................................... 6,484,761
-------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
COMMERCIAL PAPER (3.09%)
General Electric Capital
Corporation
6.70%, due 01/02/98 ...................... $ 4,000,000 $ 3,999,256
-------------
Total Commercial Paper
(cost: $ 3,999,256).......................................... 3,999,256
-------------
Total Investment Securities
(cost: $ 125,100,103)........................................ $ 127,859,747
=============
SUMMARY
Investments at market value ..................... 98.62% $ 127,859,747
Other Assets in
Excess of Liabilities ........................ 1.38% 1,793,935
------ -------------
Net Assets ...................................... 100.00% $ 129,653,682
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 36,601,848. 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 7 A n n u a l R e p o r t
37
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CONVERTIBLE BONDS (0.02%)
ELECTRONIC COMPONENTS & ACCESSORIES (0.02%)
Lernout & Hauspie Speech
Products N.V. - 144A (c)
8.00%, due 11/15/01 ...................... $ 148,300 $ 338,866
-----------
Total Convertible Bonds
(cost: $ 148,300).............................................. 338,866
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
PREFERRED STOCKS (0.01%)
COMPUTER & DATA PROCESSING SERVICE (0.01%)
SAP AG - Vorzug .............................. 400 $ 130,886
-----------
Total Preferred Stocks
(cost: $ 57,162)............................................ 130,886
-----------
COMMON STOCKS (91.06%)
AIR TRANSPORTATION (0.89%)
UAL Corporation (a) .......................... 176,150 16,293,875
BEVERAGES (1.65%)
Coca-Cola Company ............................ 455,850 30,371,006
CHEMICALS & ALLIED PRODUCTS (5.80%)
Colgate-Palmolive Company .................... 543,125 39,919,688
Gillette Company ............................. 476,700 47,878,556
Monsanto Company ............................. 420,950 17,679,900
Solutia Inc. (a) ............................. 47,890 1,278,064
COMMERCIAL BANKS (9.92%)
BankAmerica Corporation ...................... 1,247,475 91,065,675
Chase Manhattan Corporation .................. 176,575 19,334,963
Citicorp (b) ................................. 434,820 54,977,554
Wells Fargo & Company ........................ 50,133 17,017,020
COMMUNICATION (2.08%)
Nextel Communications,
Inc. (a) (b) ............................. 1,471,500 38,259,000
COMMUNICATIONS EQUIPMENT (7.04%)
Advanced Fibre Communications,
Inc. (a) (b) ............................. 412,425 12,011,878
CIENA Corporation (a) ........................ 648,900 39,664,013
Lucent Technologies, Inc. .................... 257,975 20,605,753
Nokia Oyj - ADR .............................. 785,125 54,958,750
Northern Telecom Limited ..................... 5,225 465,025
QUALCOMM, Inc. (a) (b) ....................... 8,775 443,138
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
Retix (a) ...................................... 23,550 $ 110,391
Sawtek Inc. (a) ................................ 4,125 108,281
Telefonaktiebolaget LM Ericsson -
ADR ........................................ 7,650 285,441
Tellabs, Inc. (a) .............................. 11,725 619,959
ViaSat, Inc. (a) ............................... 20,000 272,500
COMPUTER & DATA PROCESSING SERVICES (11.10%)
America Online, Inc. (a) (b) ................... 295,000 26,310,313
Aspen Technologies, Inc. (a) ................... 5,900 202,075
BEA Systems, Inc. (a) .......................... 8,775 151,917
BMC Software, Inc. (a) ......................... 8,075 529,922
Brilliant Digital Entertainment,
Inc. (a) ................................... 63,600 298,125
Cadence Design Systems,
Inc. (a) (b) ............................... 58,900 1,443,050
Check Point Software
Technologies Ltd. (a) (b) .................. 5,850 238,388
Compuware Corporation (a) ...................... 11,400 364,800
HBO & Company (b) .............................. 353,750 16,980,000
JBA Holdings Plc ............................... 12,434 211,544
META Group, Inc. (a) ........................... 13,475 296,450
Microsoft Corporation (a) ...................... 805,675 104,133,493
Parametric Technology
Company (a) ................................ 32,375 1,533,766
PeopleSoft, Inc. (a) (b) ....................... 1,161,550 45,300,450
Sapient Corporation (a) (b) .................... 17,225 1,055,031
Sun Microsystems, Inc. (a) ..................... 15,850 632,019
TTI Team Telecom International
Ltd. (a) ................................... 59,725 309,823
Vantive Corporation (a) ........................ 12,975 327,619
VERITAS Software
Corporation (a) ............................ 38,012 1,938,612
Viasoft, Inc. (a) .............................. 34,775 1,469,244
Visio Corporation (a) .......................... 10,575 405,816
COMPUTER & OFFICE EQUIPMENT (7.48%)
Asustek Computer Inc. (a) ...................... 14,350 238,569
Cisco Systems, Inc. (a) ........................ 742,137 41,374,138
Compaq Computer Corporation .................... 11,187 631,366
Dell Computer
Corporation (a) (b) ........................ 1,122,625 94,300,499
EMC Corporation (a) ............................ 13,800 378,638
International Business Machines
Corporation ................................ 7,050 737,166
ELECTRIC SERVICES (0.83%)
AES Corporation (a) (b) ........................ 325,525 15,177,603
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
38
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-----------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE BONDS (0.02%)
ELECTRONIC COMPONENTS & ACCESSORIES (5.21%)
8 X 8, Inc. (a) (b) ............................. 26,525 $ 290,117
Altera Corporation (a) .......................... 2,300 76,188
Analog Devices, Inc. (a) ........................ 27,133 751,245
ASM Lithography Holding
N.V. (a) (b) ................................ 7,675 518,063
Intel Corporation ............................... 441,200 30,994,300
International Manufacturing
Services, Inc. (a) .......................... 18,400 133,400
MMC Networks, Inc. (a) (b) ...................... 5,325 90,525
Philips Electronics N.V. (a) .................... 1,727 103,603
Texas Instruments
Incorporated (b) ............................ 1,398,800 62,946,000
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.73%)
General Electric Company ........................ 1,185,450 86,982,394
ENGINEERING & MANAGEMENT SERVICES (0.08%)
Stolt Comex Seaway, S.A. (a) .................... 28,150 1,407,500
FOOD STORES (0.56%)
Starbucks Corporation (a) (b) ................... 268,150 10,290,256
HOLDING & OTHER INVESTMENT OFFICES (0.45%)
Vornado Realty Trust ............................ 177,950 8,352,528
INSTRUMENTS & RELATED PRODUCTS (0.03%)
Credence Systems
Corporation (a) ............................. 7,075 209,597
GenRad, Inc. (a) ................................ 6,550 197,728
KLA-Tencor Corporation (a) (b) .................. 5,325 205,678
MANAGEMENT SERVICES (0.03%)
Whittman-Hart, Inc. (a) ......................... 14,900 510,325
MANUFACTURING INDUSTRIES (0.04%)
Mattel, Inc. .................................... 20,050 746,863
MEDICAL INSTRUMENTS & SUPPLIES (1.40%)
Guidant Corporation ............................. 403,950 25,145,888
Photoelectron Corporation (a) ................... 56,850 547,181
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (1.03%)
Schlumberger Limited (b) ......................... 235,475 $ 18,955,738
PERSONAL CREDIT INSTITUTIONS (5.10%)
American Express Company ......................... 585,975 52,298,269
Household International, Inc. .................... 325,775 41,556,673
PETROLEUM REFINING (0.92%)
Mobil Corporation ................................ 234,875 16,955,039
PHARMACEUTICALS (19.31%)
Astra AB - Class A Free .......................... 518,891 8,989,343
Bristol-Myers Squibb Company ..................... 499,900 47,303,037
Eli Lilly and Company ............................ 1,232,275 85,797,146
Pfizer, Inc. ..................................... 1,232,700 91,913,193
SmithKline Beecham Plc ........................... 132,776 1,359,742
SmithKline Beecham Plc -
Sponsored ADR ................................ 934,275 48,056,770
Warner Chilcott Laboratories -
Sponsored ADR (a) ............................ 24,100 298,238
Warner-Lambert Company ........................... 576,575 71,495,299
RESEARCH & TESTING SERVICES (0.01%)
Bio-Technology General
Corporation (a) .............................. 11,800 126,850
RETAIL TRADE (1.75%)
Costco Companies, Inc. (a) (b) ................... 722,350 32,234,869
SECURITY & COMMODITY BROKERS (3.18%)
Merrill Lynch & Co., Inc. ........................ 802,202 58,510,607
TELECOMMUNICATIONS (0.44%)
LCC International, Inc. -
Class A (a) .................................. 11,725 170,013
Telefonica del Peru S.A. -
Sponsored ADR ................................ 56,475 1,316,573
Teleport Communications Group
Inc. (a) (b) ................................. 120,700 6,623,413
WorldCom, Inc. (a) ............................... 1 15
-------------
Total Common Stocks
(cost: $ 1,210,920,262)..................................... 1,675,051,072
-------------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
39
<PAGE>
WRL SERIES FUND, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (6.23%)
Federal Home Loan Bank
5.72%, due 01/16/98 .................... $50,000,000 $ 49,880,833
Fannie Mae
5.71%, due 01/16/98 .................... 25,000,000 24,940,521
Fannie Mae
5.67%, due 01/21/98 .................... 20,000,000 19,937,000
Fannie Mae
5.48%, due 01/12/98 .................... 20,000,000 19,966,511
--------------
Total Short-Term U.S.
Government Obligations
(cost: $ 114,724,865)....................................... 114,724,865
--------------
COMMERCIAL PAPER (3.15%)
CIT Group Holdings
6.73%, due 01/02/98 .................... 57,900,000 57,889,176
--------------
Total Commercial Paper
(cost: $ 57,889,176)........................................ 57,889,176
--------------
Total Investment Securities
(cost: $ 1,383,739,765)..................................... $1,848,134,865
==============
SUMMARY
Investments at market value ........... 100.47% $1,848,134,865
Other Liabilities in
Excess of Assets ................... ( 0.47 %) (8,681,829)
------- --------------
Net Assets ............................ 100.00% $1,839,453,036
======= ==============
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO NET ASSETS.
MARKET VALUE PERCENTAGE
------------------ -----------
Great Britain ......... $ 1,571,286 0.09%
Germany ............... 130,887 0.01%
Netherlands ........... 103,603 0.01%
Sweden ................ 8,989,343 0.49%
United States ......... 1,828,657,917 99.40%
--------------- ------
Net Assets ........... $ 1,839,453,036 100.00%
=============== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 159,728,183. 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.
W R L S e r i e s F u n d , I n c .
40
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------
NUMBER OF MARKET
SHARES VALUE
-------- ------
PREFERRED STOCKS (0.84%)
BEER, WINE, & DISTILLED BEVERAGES (0.18%)
Companhia Cervejaria Brahma ....................... 2,175,000 $ 1,461,600
COMMUNICATIONS EQUIPMENT (0.33%)
Ericsson Telecomunicacoes S/A ..................... 79,790,000 2,559,571
ELECTRIC SERVICES (0.23%)
Companhia Energetica de Minas
Gerais - ADR .................................. 38,662,000 1,677,931
Companhia Paranaense de
Energia-Copel - Preferred B ................... 8,000,000 108,000
OIL & GAS EXTRACTION (0.10%)
Petroleo Brasileiro S/A-Petrobras ................. 3,276,000 766,162
------------
Total Preferred Stocks
(cost: $ 7,716,105)........................................... 6,573,264
------------
COMMON STOCKS (97.72%)
AIR TRANSPORTATION (2.59%)
Aeroporti di Roma SpA (a) (c) ..................... 426,126 4,404,811
Deutsche Lufthansa AG (b) ......................... 145,081 2,783,038
KLM Royal Dutch Air Lines NV ...................... 103,201 3,818,488
Ryanair Holdings Plc - Sponsored
ADR (a) (b) ................................... 65,600 1,648,200
Sairgroup (a) ..................................... 2,072 2,837,190
SAS Danmark A/S ................................... 118,269 1,726,404
SAS Norske ASA - Class B (b) ...................... 68,126 950,166
SAS Sverige AB .................................... 150,312 2,177,913
AUTOMOTIVE (0.97%)
Renault SA (a) .................................... 249,848 7,027,624
Tata Engineering & Locomotive
Company Limited -
GDR (b) (c) ................................... 73,769 614,127
BEVERAGES (0.38%)
Fomento Economico Mexicano,
SA de C.V. - Class B .......................... 375,100 2,996,374
BUSINESS CREDIT INSTITUTIONS (0.32%)
Credit Communal
Holding/Dexia (b) (c) ......................... 18,310 2,460,224
BUSINESS SERVICES (2.87%)
Hutchison Whampoa Limited ......................... 235,000 1,474,153
Manpower, Inc. .................................... 27,025 952,631
Merkantildata ASA ................................. 39,185 1,347,731
Prosegur, CIA de Seguridad SA ..................... 6,357 63,712
NUMBER OF MARKET
SHARES VALUE
-------- ------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Securitas AB - Class B ............................. 501,747 $ 15,172,080
SEMA Group Plc ..................................... 58,754 1,429,381
Swire Pacific Ltd. - Class A ....................... 243,500 1,335,753
Vedior (c) ......................................... 44,541 802,046
CHEMICALS & ALLIED PRODUCTS (5.19%)
Akzo Nobel N.V. (c) ................................ 121,747 20,997,904
E. I. du Pont de Nemours and
Company ........................................ 8,350 501,522
Imperial Chemical Industries Plc ................... 135,466 2,117,677
Monsanto Company ................................... 297,800 12,507,600
Solutia Inc. ....................................... 171,580 4,579,041
Victrex Plc ........................................ 17,478 67,516
COMMERCIAL BANKS (10.30%)
Banca Commerciale Italiana (b) ..................... 1,238,253 4,306,450
Banco Rio de La Plata S.A. -
ADR (a) ........................................ 6,925 96,950
Bank Handlowy W
Warszawie (a) (c) .............................. 148,512 1,895,934
BankAmerica Corporation ............................ 21,450 1,565,850
Banque Nationale de Paris .......................... 42,949 2,282,669
Barclays Plc ....................................... 208,500 5,554,971
Bayerische Vereinsbank AG .......................... 87,988 5,758,236
BG Bank A/S (b) (c) ................................ 89,339 6,011,923
Credit Commercial de France ........................ 34,206 2,344,239
Credit Suisse Group - Registered
Shares (a) ..................................... 25,643 3,967,765
Deutsche Bank AG (b) ............................... 102,959 7,270,388
Deutsche Pfandbrief-und
Hypothekenbank AG .............................. 67,291 3,988,446
Erste Bank Der Oesterreichischen
Sparkassen AG - Sponsored
GDR (a) (c) .................................... 97,927 4,881,229
Lloyds TSB Group Plc ............................... 1,045,333 13,610,113
Merita Ltd. - Class A .............................. 256,574 1,403,691
National Westminster Bank Plc ...................... 85,894 1,437,340
Skandinaviska Enskilda Banken -
Class A ........................................ 251,908 3,189,753
Societe Generale - Class A ......................... 6,441 877,491
Uniao de Bancos Brasileiros S.A. -
Sponsored GDR (a) .............................. 32,475 1,045,289
Unidanmark A/S - Class A ........................... 4,843 355,769
Union Bank of Switzerland .......................... 4,932 7,131,579
Wells Fargo & Company .............................. 5,825 1,977,223
COMMUNICATION (2.30%)
Comcast Corporation ................................ 143,500 4,529,219
Freepages Group Plc (a) ............................ 2,500,000 1,315,040
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
41
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------
NUMBER OF MARKET
SHARES VALUE
-------- ------
COMMON STOCKS (continued)
COMMUNICATION (CONTINUED)
Tele-Communications, Inc. -
Class A (a) ................................... 437,800 $ 12,231,038
COMMUNICATIONS EQUIPMENT (1.87%)
Alcatel Alsthom ................................... 25,207 3,203,747
Nokia Oyj - Sponsored ADR -
Class A ....................................... 52,250 3,650,969
Northern Telecom Limited .......................... 41,375 3,682,375
Telefonaktiebolaget LM Ericsson -
Sponsored ADR ................................. 111,433 4,157,844
COMPUTER & DATA PROCESSING SERVICES (10.34%)
Atos SA (a) ....................................... 53,221 6,861,521
Cap Gemini SA ..................................... 110,405 9,052,146
Dassault Systemes S.A. -
ADR (b) ....................................... 42,400 1,309,100
Getronics NV ...................................... 50,307 1,603,272
JBA Holdings Plc .................................. 239,120 4,068,227
Logica Plc ........................................ 574,408 10,981,184
Microsoft Corporation (a) ......................... 133,325 17,232,256
Misys Plc ......................................... 212,179 6,417,545
NTT Data Corp. (b) ................................ 2,550 13,757,866
Parametric Technology Company
(a) (b) ....................................... 206,225 9,769,909
Prosolvia AB - Class B (a) (c) .................... 48,450 193,509
COMPUTER & OFFICE EQUIPMENT (2.43%)
Cisco Systems, Inc. (a) ........................... 290,600 16,200,950
Compaq Computer Corporation ....................... 52,000 2,934,750
CONSTRUCTION (0.80%)
Suez Lyonnaise des Eaux ........................... 56,585 6,261,108
ELECTRIC SERVICES (0.42%)
Companhia Energetica de Minas
Gerais - Sponsored ADR ........................ 4,000 173,796
Mosenergo - Sponsored ADR -
144A (c) ...................................... 15,500 579,494
Siemens AG ........................................ 21,200 1,255,379
Unified Energy Systems -
GDR (a) ....................................... 41,743 1,262,726
ELECTRICAL GOODS (0.98%)
CBS Corporation ................................... 262,275 7,720,720
ELECTRONIC COMPONENTS & ACCESSORIES (3.46%)
Analog Devices, Inc. (a) .......................... 11,150 308,716
ASM Lithography Holding
N.V. (a) (b) .................................. 16,875 1,139,063
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
Electrocomponents Plc ............................. 750,428 $ 5,587,998
Fujitsu Ltd. ...................................... 135,000 1,450,499
Intel Corporation ................................. 14,650 1,029,163
Premier Farnell Plc ............................... 313,154 2,254,660
Simac Techniek N.V. ............................... 35,288 4,108,519
Texas Instruments Incorporated .................... 251,325 11,309,625
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (7.69%)
Electrolux AB - Series B .......................... 178,273 12,376,170
General Electric Company .......................... 11,800 865,825
Hitachi Ltd. (a) .................................. 261,000 1,862,855
Matsushita Electric Works,
Ltd. (b) ...................................... 71,000 615,733
Philips Electronics N.V. .......................... 190,955 11,455,416
Philips Electronics N.V. - ADR -
NY Registered Shares (b) ...................... 285,459 17,270,270
Pricer AB - Class B (a) ........................... 80,619 1,493,151
Sony Corporation .................................. 163,500 14,555,641
ENGINEERING & MANAGEMENT SERVICES (0.28%)
Halliburton Company ............................... 16,675 866,058
Metra Oy - Class B ................................ 57,797 1,358,182
ENVIRONMENTAL SERVICES (3.02%)
Rentokil Initial Plc .............................. 5,360,628 23,741,634
FOOD STORES (0.29%)
Disco S.A. - Sponsored ADR (a) .................... 50,550 2,249,475
FOOD & KINDRED PRODUCTS (1.90%)
Danone ............................................ 14,346 2,562,211
Koninklijke Nutricia Verenigde
Bedrijven N.V. ................................ 270,210 7,198,490
Raisio Group Plc (a) .............................. 43,379 5,136,672
HOLDING & OTHER INVESTMENT OFFICES (2.53%)
Amvescap Plc ...................................... 44,534 381,230
Citic Pacific Ltd. ................................ 117,000 465,131
Dexia France (b) .................................. 36,387 4,213,613
First Pacific Company Ltd. ........................ 1,804,250 873,306
Grupo Carso SA de CV .............................. 214,083 1,426,007
Investor AB - Class B ............................. 60,619 2,955,758
Kinnevik AB - Class B ............................. 115,697 1,916,889
Lagardere S.C.A. .................................. 180,816 5,978,133
Quinenco S.A. - ADR (a) ........................... 147,400 1,695,100
INDUSTRIAL MACHINERY & EQUIPMENT (2.88%)
Compagnie Francaise d'Etudes et
de Construction Technip ....................... 17,452 1,841,173
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
42
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (continued)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
Pfeiffer Vacuum Technology AG -
Sponsored ADR (a) (b) ............................. 6,550 $ 182,581
Powerscreen International Plc ......................... 323,766 3,251,536
Siebe Plc ............................................. 885,133 17,387,030
INSTRUMENTS & RELATED PRODUCTS (0.26%)
Grand Optical Photoservice ............................ 49,812 2,049,086
INSURANCE (1.63%)
Assicurazioni Generali ................................ 77,397 1,904,346
Muenchener Rueckversicherungs-
Gesellschaft AG (a) ............................... 4,373 1,648,537
Royal & Sun Alliance Insurance
Group Plc ......................................... 312,621 3,150,124
Zurich Versicherungs-Gesellschaft...................... 12,871 6,133,244
INSURANCE AGENTS, BROKERS & SERVICE (0.66%)
Allianz AG ............................................ 8,003 2,073,616
Pohjola Insurance Group -
Class B ........................................... 20,100 745,401
Sampo Insurance Company Ltd. -
Class A ........................................... 51,149 1,690,255
Sampo Insurance Company Ltd. -
Class A Free ...................................... 20,537 678,660
LIFE INSURANCE (1.34%)
Schweizerische
Lebensversicherungs-und
Rentenanstalt ..................................... 13,173 10,344,674
Union des Assurances
Federales (a) ..................................... 1,063 139,520
MANUFACTURING INDUSTRIES (2.84%)
Amer Group Ltd. (a) (b) ............................... 100,592 1,929,845
Assa Abloy AB - Class B Free .......................... 558,863 14,786,785
Barco Industries N.V. ................................. 469 86,134
TI Group Plc .......................................... 183,438 1,408,170
Tomkins Plc ........................................... 258,580 1,224,155
Tomra Systems ASA ..................................... 14,714 328,749
Williams Plc .......................................... 459,491 2,552,952
MEDICAL INSTRUMENTS & SUPPLIES (0.08%)
Fresenius Medical Care AG -
ADR (a) ........................................... 29,825 648,694
OIL & GAS EXTRACTION (2.34%)
British Petroleum Company Plc ......................... 194,869 2,580,223
Lukoil Holding - Sponsored
ADR (b) ........................................... 16,625 1,526,589
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
Schlumberger Limited ................................. 83,825 $6,747,913
Total SA - Class B ................................... 24,820 2,700,964
Transocean Offshore Inc. ............................. 31,150 1,501,041
YPF Sociedad Anonima -
Sponsored ADR .................................... 98,450 3,365,759
PAPER & PAPER PRODUCTS (0.08%)
Kimberly-Clark de Mexico,
SA de CV - Class A ............................... 135,700 643,666
PERSONAL SERVICES (1.36%)
Hays Plc ............................................. 719,928 9,591,955
Kuoni Reisen AG - Class B ............................ 290 1,087,053
PETROLEUM & COAL PRODUCTS (1.57%)
Elf Aquitaine SA ..................................... 106,228 12,354,145
PHARMACEUTICALS (8.32%)
Ares-Serono Group - Class B .......................... 1,308 2,158,209
Cardinal Health, Inc. ................................ 17,500 1,314,688
Eli Lilly & Company .................................. 46,800 3,258,450
Gehe AG .............................................. 51,168 2,560,534
Grupo Casa Autrey S.A. de C.V. -
Sponsored ADR (b) ................................ 153,475 3,136,645
Novartis AG - Registered Shares ...................... 5,681 9,218,109
Pfizer, Inc. ......................................... 66,275 4,941,630
Rhone-Poulenc - Class A .............................. 83,193 3,726,339
Roche Holding AG ..................................... 1,105 10,973,590
Schering-Plough Corporation .......................... 10,000 621,250
SmithKline Beecham Plc ............................... 630,244 6,454,249
SmithKline Beecham Plc -
Sponsored ADR .................................... 65,350 3,361,441
Takeda Chemical Industries ........................... 205,000 5,852,648
Warner-Lambert Company ............................... 63,000 7,812,000
PRINTING & PUBLISHING (2.34%)
Elsevier NV .......................................... 302,527 4,895,356
Wolters Kluwer NV .................................... 104,483 13,499,802
RADIO & TELEVISION BROADCASTING (0.78%)
Grupo Televisa S.A. - Sponsored
GDR (a) ......................................... 146,775 5,678,358
Modern Times Group MTG AB -
Class A (a) ...................................... 79,839 477,964
REAL ESTATE (0.79%)
Mitsubishi Estate Company,
Limited (a) ...................................... 449,000 4,893,170
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
43
<PAGE>
WRL SERIES FUND, INC.
GLOBAL PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
REAL ESTATE (CONTINUED)
Mitsui Fudosan Co., Ltd. ......................... 140,000 $ 1,353,799
RESEARCH & TESTING SERVICES (1.14%)
Quintiles Transnational
Corp. (a) (b) ................................ 95,300 3,645,225
WM-Data AB - Class B (b) ......................... 291,885 5,277,312
RESTAURANTS (0.89%)
Compass Group Plc (c) ............................ 380,256 4,681,735
Tele Pizza, S.A. (a) ............................. 28,553 2,300,550
RETAIL TRADE (0.02%)
Cifra SA de CV - Series B ........................ 51,846 126,658
RUBBER & MISC. PLASTIC PRODUCTS (1.38%)
Adidas AG ........................................ 22,339 2,938,786
Bridgestone Corp. (a) ............................ 106,077 2,303,898
Compagnie Generale des
Etablissements Michelin -
Class B ...................................... 112,033 5,639,807
TELECOMMUNICATIONS (5.62%)
China Telecom (Hong Kong)
Limited (a) (b) (c) .......................... 596,000 1,023,143
Energis Plc (a) .................................. 541,459 2,269,628
Millicom International Cellular
S.A. (a) ..................................... 29,550 1,111,819
Nippon Telegraph & Telephone ..................... 2,076 17,846,250
Nokia Oyj - Class A .............................. 45,143 3,157,607
Nortel Inversora S.A. -
ADR (a) (d) .................................. 121,025 3,086,138
Telecom Argentina Stet - France
Telecom S.A. - Sponsored
ADR (b) ...................................... 13,050 466,538
Telecom Italia SpA ............................... 657,876 4,207,848
Telefonaktiebolaget LM Ericsson -
Class B ...................................... 150,631 5,665,103
Telefonica de Argentina S.A. -
Sponsored ADR (b) ............................ 67,300 2,506,924
Telefonica del Peru S.A. -
Sponsored ADR (b) ............................ 120,625 2,812,069
FINANCE (0.47%)
SLM Holding Corporation .......................... 26,275 3,655,508
-------------
Total Common Stocks
(cost: $ 648,153,370)..................................... 768,048,839
-------------
Total Investment Securities
(cost: $ 655,869,475)..................................... $ 774,622,103
=============
SUMMARY
Investments at market value ..................... 98.56% $ 774,622,103
Other Assets in Excess of
Liabilities ................................. 1.44% 11,343,417
------- -------------
Net Assets ...................................... 100.00% $ 785,965,520
======= =============
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO NET ASSETS.
MARKET VALUE PERCENTAGE
---------------- -----------
Austria ............... $ 4,881,229 0.62%
Belgium ............... 2,546,358 0.32%
Brazil ................ 6,573,264 0.84%
Denmark ............... 8,094,096 1.03%
Finland ............... 16,100,313 2.05%
France ................ 79,115,538 10.07%
Germany ............... 30,276,961 3.85%
Great Britain ......... 133,516,275 16.99%
Hong Kong ............. 5,171,486 0.66%
Italy ................. 14,823,455 1.89%
Japan ................. 64,492,358 8.20%
Mexico ................ 5,192,704 0.66%
Netherlands ........... 68,379,292 8.70%
Norway ................ 2,626,646 0.33%
Poland ................ 1,895,934 0.24%
Spain ................. 2,364,261 0.30%
Sweden ................ 65,682,387 8.36%
Switzerland ........... 53,851,413 6.85%
United States ......... 220,381,550 28.04%
------------- ------
Net Assets ........... $ 785,965,520 100.00%
============= ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 64,268,579. 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.
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.
W R L S e r i e s F u n d , I n c .
44
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
SCHEDULE OF INVESTMENTS
December 31, 1997
---------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (CONTINUED)
ELECTRIC SERVICES (CONTINUED)
U.S. GOVERNMENT OBLIGATIONS (9.80%)
U.S. Treasury Notes
5.88%, due 01/31/99 ......................... $ 4,000,000 $4,009,840
U.S. Treasury Notes (b)
6.00%, due 10/15/99 ......................... 7,000,000 7,041,510
U.S. Treasury Notes (b)
6.38%, due 01/15/00 ......................... 6,000,000 6,085,740
U.S. Treasury Notes
6.13%, due 07/31/00 ......................... 6,000,000 6,059,940
U.S. Treasury Notes
6.13%, due 09/30/00 ......................... 8,300,000 8,383,248
U.S. Treasury Notes
6.38%, due 09/30/01 ......................... 7,500,000 7,652,475
U.S. Treasury Notes
7.50%, due 11/15/01 ......................... 7,000,000 7,418,810
U.S. Treasury Notes
7.50%, due 02/15/05 ......................... 4,500,000 4,946,040
----------
Total U.S. Government Obligations
(cost: $ 51,032,113).......................................... 51,597,603
----------
CORPORATE DEBT SECURITIES (15.45%)
AEROSPACE (1.04%)
Lockheed Martin Corporation
7.45%, due 06/15/04 ......................... 5,200,000 5,474,024
BUSINESS SERVICES (0.90%)
Olsten Corporation
7.00%, due 03/15/06 ......................... 4,625,000 4,757,969
CHEMICALS & ALLIED PRODUCTS (0.34%)
Dexter Corporation
9.25%, due 12/15/16 ......................... 356,000 371,414
M.A. Hanna Company
9.38%, due 09/15/03 ......................... 1,250,000 1,421,875
COMMERCIAL BANKS (1.02%)
First Union Corporation
7.25%, due 02/15/03 ......................... 2,600,000 2,704,000
J.P. Morgan & Company Incorpo-
rated
7.63%, due 09/15/04 ......................... 2,510,000 2,663,738
COMMUNICATIONS EQUIPMENT (1.28%)
Lucent Technologies, Inc.
6.90%, due 07/15/01 ......................... 6,575,000 6,739,376
ELECTRIC SERVICES (3.87%)
Florida Power & Light Company
7.88%, due 01/01/13 ......................... 6,500,000 6,686,875
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (CONTINUED)
ELECTRIC SERVICES (CONTINUED)
Interstate Power Company
8.63%, due 09/15/21 ......................... $ 3,825,000 $4,040,156
Kentucky Utilities Company
8.55%, due 05/15/27 ......................... 4,000,000 4,450,000
West Penn Power Company
8.88%, due 02/01/21 ......................... 5,000,000 5,187,500
ELECTRICAL GOODS (0.43%)
Avnet, Inc.
6.88%, due 03/15/04 ......................... 2,199,000 2,267,719
GAS PRODUCTION & DISTRIBUTION (0.21%)
ONEOK, Inc.
9.75%, due 12/01/20 ......................... 1,000,000 1,112,500
INSTRUMENTS & RELATED PRODUCTS (1.09%)
Raytheon Company
6.50%, due 07/15/05 ......................... 5,700,000 5,735,625
LIFE INSURANCE (0.60%)
Torchmark Corporation
8.63%, due 03/01/17 ......................... 3,014,000 3,142,095
RAILROADS (1.66%)
Union Pacific Corporation
8.50%, due 01/15/17 ......................... 5,500,000 5,733,750
Union Pacific Corporation
6.25%, due 03/15/99 ......................... 3,000,000 3,003,750
TELECOMMUNICATIONS (3.01%)
AirTouch Communications, Inc.
7.00%, due 10/01/03 ......................... 4,700,000 4,830,561
Alltel Corporation
7.25%, due 04/01/04 ......................... 5,465,000 5,717,756
GTE Hawaiian Telephone Com-
pany, Inc.
7.38%, due 09/01/06 ......................... 5,000,000 5,293,435
----------
Total Corporate Debt Securities
(cost: $ 80,464,685)........................................... 81,334,118
----------
CONVERTIBLE BONDS (6.07%)
ELECTRICAL GOODS (1.12%)
Kent Electronics
4.50%, due 09/01/04 ......................... 7,000,000 5,897,500
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
45
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-----------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CONVERTIBLE BONDS (CONTINUED)
ENVIRONMENTAL SERVICES (0.74%)
USA Waste Services, Inc.
4.00%, due 02/01/02 ................... $ 3,500,000 $ 3,889,375
HOTELS & OTHER LODGING PLACES (0.79%)
CapStar Hotel Company
4.75%, due 10/15/04 ................... 4,175,000 4,175,000
INDUSTRIAL MACHINERY & EQUIPMENT (0.83%)
Robbins & Myers, Inc.
6.50%, due 09/01/03 ................... 2,800,000 4,375,000
LUMBER & OTHER BUILDING MATERIALS (1.54%)
Home Depot, Inc.
3.25%, due 10/01/01 ................... 6,000,000 8,130,000
OIL & GAS EXTRACTION (1.05%)
Nabors Industries, Inc.
5.00%, due 05/15/06 ................... 3,025,000 5,505,500
-----------
Total Convertible Bonds
(cost: $ 27,289,335).................................... 31,972,375
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE PREFERRED STOCKS (8.35%)
COMPUTER & DATA PROCESSING SERVICES (1.62%)
Microsoft Corporation ........................ 95,000 $ 8,538,125
HOLDING & OTHER INVESTMENT OFFICES (1.90%)
TIMET Capital Trust 144A (c) ................. 103,500 5,200,875
TIMET Capital Trust (b) ...................... 95,000 4,773,750
LIFE INSURANCE (1.53%)
SunAmerica, Inc. - Series E .................. 62,600 8,075,400
RADIO & TELEVISION BROADCASTING (0.77%)
Sinclair Broadcast Group, Inc. ............... 70,000 4,068,750
SECURITY & COMMODITY BROKERS (1.43%)
Merrill Lynch STRYPES ........................ 107,000 7,543,500
TELECOMMUNICATIONS (1.10%)
WorldCom, Inc. ............................... 55,000 5,775,000
-----------
Total Convertible Preferred Stocks
(cost: $ 41,842,139).................................... 43,975,400
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (59.07%)
BEVERAGES (1.11%)
PepsiCo, Inc. ................................ 160,000 $ 5,830,000
BUSINESS CREDIT INSTITUTIONS (0.30%)
CIT Group, Inc. (a) .......................... 49,000 1,580,250
BUSINESS SERVICES (1.84%)
AccuStaff, Inc. (a) (b) ...................... 197,500 4,542,500
Manpower, Inc. ............................... 145,500 5,128,875
CHEMICALS & ALLIED PRODUCTS (7.78%)
Colgate-Palmolive Company .................... 103,400 7,599,900
Estee Lauder Companies -
Class A .................................. 130,000 6,686,875
E. I. du Pont de Nemours and
Company .................................. 92,000 5,525,750
Gillette Company ............................. 58,280 5,853,498
Lawter International, Inc. ................... 337,500 3,670,313
Morton International, Inc. ................... 151,500 5,207,813
Procter & Gamble Company ..................... 80,000 6,385,000
COMMERCIAL BANKS (3.09%)
Compass Bancshares Inc. ...................... 150,500 6,584,375
Mellon Bank Corporation ...................... 160,000 9,699,999
COMPUTER & OFFICE EQUIPMENT (1.23%)
Hewlett-Packard Company ...................... 104,000 6,500,000
DEPARTMENT STORES (0.95%)
Sears, Roebuck and Co. ....................... 110,300 4,991,075
ELECTRICAL GOODS (0.75%)
CBS Corporation .............................. 135,000 3,974,063
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.41%)
Emerson Electric Company ..................... 100,000 5,643,750
General Electric Company ..................... 96,000 7,044,000
FINANCE (1.61%)
Fannie Mae ................................... 149,000 8,502,313
FOOD & KINDRED PRODUCTS (2.63%)
H.J. Heinz Company ........................... 125,000 6,351,563
Nabisco Holdings Corporation -
Class A (b) .............................. 155,300 7,522,344
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
46
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
------------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
HOLDING & OTHER INVESTMENT OFFICES (3.76%)
Crescent Real Estate Equities
Company ..................................... 260,000 $ 10,237,499
Starwood Lodging Trust (b) ...................... 165,000 9,549,374
HOTELS & OTHER LODGING PLACES (0.92%)
La Quinta Inns, Inc. ............................ 250,000 4,828,125
INDUSTRIAL MACHINERY & EQUIPMENT (1.33%)
Baker Hughes, Inc. .............................. 160,000 6,980,000
INSURANCE (2.36%)
American International
Group, Inc. ................................. 54,500 5,926,875
PartnerRe Ltd. .................................. 140,000 6,492,500
INSURANCE AGENTS, BROKERS & SERVICE (0.98%)
E. W. Blanch Holdings, Inc. ..................... 72,300 2,489,831
Marsh & McLennan
Companies, Inc. ............................. 36,000 2,684,250
LIFE INSURANCE (1.10%)
American General
Corporation (b) ............................. 106,900 5,779,281
MANUFACTURING INDUSTRIES (1.45%)
Tyco International Ltd. ......................... 170,000 7,660,625
MEDICAL INSTRUMENTS & SUPPLIES (1.77%)
Baxter International, Inc. ...................... 122,200 6,163,463
Covance, Inc. (a) ............................... 160,000 3,180,000
MORTGAGE BANKERS AND BROKERS (0.61%)
Imperial Credit Commercial
Mortgage Investment Corp. (a)................ 220,000 3,217,500
MOTION PICTURES (0.85%)
Walt Disney Company ............................. 45,400 4,497,438
OIL & GAS EXTRACTION (1.26%)
Schlumberger Limited ............................ 33,000 2,656,500
Union Pacific Resources
Group, Inc. ................................. 165,000 4,001,250
PAPER & ALLIED PRODUCTS (0.78%)
Kimberly-Clark Corporation ...................... 82,900 4,088,006
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PAPERBOARD CONTAINERS AND BOXES (0.05%)
Longview Fibre Company .......................... 18,000 $ 273,375
PETROLEUM REFINING (4.05%)
Amoco Corporation ............................... 50,700 4,315,838
Exxon Corporation ............................... 114,800 7,024,325
Mobil Corporation ............................... 137,800 9,947,437
PHARMACEUTICALS (4.21%)
Merck & Co., Inc. ............................... 70,500 7,490,625
Schering-Plough Corporation ..................... 104,000 6,461,000
SmithKline Beecham Plc -
Sponsored ADR ............................... 160,000 8,229,999
PRINTING & PUBLISHING (1.28%)
A.H. Belo Corporation - Class A.................. 120,400 6,757,450
REAL ESTATE (0.15%)
Crescent Operating, Inc. (a) .................... 32,150 787,675
SAVINGS INSTITUTIONS (1.53%)
First Colorado Bancorp, Inc. (b) ................ 339,500 8,063,125
STONE, CLAY & GLASS PRODUCTS (1.20%)
Corning Inc. (b) ................................ 170,500 6,329,813
TELECOMMUNICATIONS (2.33%)
Alltel Corporation .............................. 152,900 6,278,456
SBC Communications, Inc. ........................ 63,000 4,614,750
Telstra Corporation
Limited ADR (a) (b) ......................... 33,150 1,384,013
TOBACCO PRODUCTS (1.38%)
Philip Morris Companies Inc. .................... 160,000 7,250,000
WHOLESALE TRADE DURABLE GOODS (2.02%)
Johnson & Johnson ............................... 58,400 3,847,100
Sybron International
Corporation (a) ............................. 144,000 6,759,000
------------
Total Common Stocks
(cost: $ 221,018,166)........................................ 311,070,754
------------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
47
<PAGE>
WRL SERIES FUND, INC.
STRATEGIC TOTAL RETURN PORTFOLIO (E)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
---------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM OBLIGATION (0.43%)
Investors Bank & Trust Company (d)
5.90%, Repurchase
Agreement dated 12/31/97
to be repurchased at
$ 2,238,609 on 01/02/98................ $ 2,237,876 $ 2,237,876
------------
Total Short-Term Obligation
(cost: $ 2,237,876)......................................... 2,237,876
------------
Total Investment Securities
(cost: $ 423,884,314)....................................... $522,188,126
============
SUMMARY
Investments at market value ..................... 99.17% $ 522,188,126
Other Assets in
Excess of Liabilities ........................ 0.83% 4,388,565
------ -------------
Net Assets ...................................... 100.00% $ 526,576,691
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 40,504,947. 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 $ 4,434,000 Fannie Mae Adjustable Rate Mortgage 7.80% due
11/01/25; market value and accrued interest aggregated $ 2,350,095 for the
collateral at December 31, 1997.
(e) Prior to May 1, 1997, this portfolio was named Equity-Income.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
48
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
---------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE PREFERRED STOCKS (C)
TELECOMMUNICATIONS (C)
AirTouch Communications, Inc. -
Series B ........................................ 1 $ 36
AirTouch Communications, Inc. -
Series C ........................................ 1 62
-----------
Total Convertible Preferred Stocks
(cost: $ 77)................................................... 98
-----------
COMMON STOCKS (94.56%)
AIR TRANSPORTATION (2.61%)
Airborne Freight Corporation ........................ 45,000 2,795,625
Comair Holdings, Inc. ............................... 52,000 1,254,500
Continental Airlines, Inc. -
Class A (a) ..................................... 20,000 967,500
Continental Airlines, Inc. -
Class B (a) (b) ................................. 55,000 2,646,875
Southwest Airlines Company .......................... 129,000 3,176,625
US Airways Group, Inc. (a) .......................... 75,000 4,687,500
APPAREL PRODUCTS (0.77%)
Jones Apparel Group, Inc. (a) ....................... 32,800 1,410,400
Nautica Enterprises, Inc. (a) ....................... 40,000 930,000
Polo Ralph Lauren
Corporation (a) ................................. 28,400 690,475
WestPoint Stevens, Inc. (a) ......................... 33,000 1,559,250
APPAREL & ACCESSORY STORES (1.75%)
Kohl's Corporation (a) .............................. 35,000 2,384,375
Pacific Sunwear of California
(a) (b) ......................................... 51,000 1,507,688
Ross Stores, Inc. ................................... 130,000 4,728,750
Stage Stores, Inc. (a) (b) .......................... 48,000 1,794,000
AUTO REPAIR, SERVICES & PARKING (0.10%)
Avis Rent A Car, Inc. (a) ........................... 19,900 635,556
BEVERAGES (0.46%)
Canandaigua Brands, Inc. -
Class A (a) ..................................... 49,500 2,741,063
BUSINESS CREDIT INSTITUTIONS (0.84%)
FINOVA Group, Inc. .................................. 100,000 4,968,750
BUSINESS SERVICES (2.70%)
AccuStaff Incorporated (a) (b) ...................... 32,750 753,250
CORESTAFF, Inc. (a) ................................. 41,000 1,086,500
Engineering Animation, Inc. (a) ..................... 8,000 368,000
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Interpublic Group of
Companies, Inc. ................................. 65,000 $ 3,237,813
Omnicom Group, Inc. ................................. 99,000 4,195,125
Outdoor Systems, Inc. (a) ........................... 40,000 1,535,000
Robert Half International,
Inc. (a) (b) .................................... 64,500 2,580,000
StaffMark, Inc. (a) ................................. 22,000 695,750
Wind River Systems (a) (b) .......................... 39,000 1,547,813
CHEMICALS & ALLIED PRODUCTS (0.10%)
Witco Corporation ................................... 15,000 612,188
COMMERCIAL BANKS (1.63%)
Cullen/Frost Bankers, Inc. .......................... 25,000 1,517,188
National Commerce
Bancorporation .................................. 16,000 564,000
North Fork Bancorporation,
Inc. (b) ........................................ 48,000 1,611,000
Peoples Heritage Financial
Group, Inc. ..................................... 30,000 1,380,000
Silicon Valley Bancshares (a) ....................... 10,000 562,500
Star Banc Corporation (b) ........................... 35,000 2,008,125
State Street Corporation ............................ 34,000 1,978,375
COMMUNICATIONS EQUIPMENT (1.69%)
Advanced Fibre Communications,
Inc. (a) (b) .................................... 110,000 3,203,750
CIENA Corporation (a) ............................... 42,000 2,567,250
Digital Microwave
Corporation (a) ................................. 74,000 1,073,000
Network Appliance, Inc. (a) ......................... 20,000 710,000
NICE-Systems Ltd. - Sponsored
ADR (a) ......................................... 21,000 882,000
Tekelec (a) ......................................... 25,000 762,500
Yurie Systems, Inc. (a) (b) ......................... 40,000 807,500
COMPUTER & DATA PROCESSING SERVICES (17.24%)
America Online, Inc. (a) ............................ 75,000 6,689,063
Aspect Development, Inc. (a) ........................ 20,000 1,040,000
Baan Company, nv (a) (b) ............................ 46,000 1,518,000
BMC Software, Inc. (a) (b) .......................... 135,000 8,859,375
Cambridge Technology Partners,
Inc. (a) ........................................ 50,000 2,081,250
CBT Group PLC - Sponsored
ADR (a) ......................................... 37,500 3,079,688
Check Point Software
Technologies Ltd. (a) (b) ....................... 7,300 297,475
Ciber, Inc. (a) ..................................... 34,000 1,972,000
Citrix Systems, Inc. (a) ............................ 75,000 5,700,000
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
49
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
---------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
Comdisco, Inc. ...................................... 48,000 $ 1,605,000
Computer Horizons
Corporation (a) (b) ............................. 39,500 1,777,500
Compuware Corporation (a) ........................... 320,000 10,240,000
HBO & Company (b) ................................... 325,000 15,600,000
HNC Software, Inc. (a) (b) .......................... 35,000 1,505,000
Hyperion Software
Corporation (a) ................................. 68,000 2,431,000
Information Management
Resources, Inc. (a) ............................. 30,000 1,125,000
Keane, Inc. (a) ..................................... 81,000 3,290,625
Legato Systems, Inc. (a) ............................ 43,000 1,892,000
Manugistics Group, Inc. (a) ......................... 30,000 1,338,750
MEMCO Software Ltd. (a) ............................. 7,500 151,875
PeopleSoft, Inc. (a) ................................ 220,000 8,580,000
Saville Systems Ireland plc -
Sponsored ADR (a) (b) ........................... 44,000 1,826,000
Siebel Systems, Inc. (a) ............................ 68,000 2,843,250
SunGard Data Systems
Inc. (a) (b) .................................... 110,000 3,410,000
Teradyne, Inc. (a) .................................. 74,000 2,368,000
VERITAS Software
Corporation (a) ................................. 61,000 3,111,000
Visio Corporation (a) ............................... 50,000 1,918,750
Yahoo! Inc. (a) (b) ................................. 84,000 5,817,000
COMPUTER & OFFICE EQUIPMENT (6.39%)
Apex PC Solutions, Inc. (a) (b) ..................... 30,000 663,750
Caribiner International, Inc. (a) ................... 40,000 1,780,000
Compaq Computer Corporation ......................... 42,500 2,398,594
Dell Computer Corporation
(a) (b) ......................................... 275,000 23,100,000
EMC Corporation (a) ................................. 220,000 6,036,250
Jabil Circuit, Inc. (a) (b) ......................... 55,000 2,186,250
SMART Modular
Technologies, Inc. (a) .......................... 73,000 1,679,000
DEPARTMENT STORES (1.85%)
Fred Meyer, Inc. (a) (b) ............................ 90,000 3,273,750
Proffitt's, Inc. (a) (b) ............................ 105,000 2,985,938
TJX Companies, Inc. ................................. 136,000 4,675,000
DRUG STORES & PROPRIETARY STORES (0.45%)
CVS Corporation ..................................... 42,000 2,690,625
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
EDUCATIONAL SERVICES (0.58%)
Apollo Group, Inc. - Class A (a) .................... 45,000 $ 2,126,250
Computer Learning
Centers, Inc. (a) (b) ........................... 21,000 1,286,250
ELECTRIC SERVICES (0.63%)
AES Corporation (a) ................................. 80,000 3,730,000
ELECTRONIC COMPONENTS & ACCESSORIES (1.74%)
ASM Lithography Holding
N.V. (a) (b) .................................... 32,500 2,193,750
DII Group, Inc. (a) (b) ............................. 22,000 599,500
Level One Communications,
Inc. (a) ........................................ 49,000 1,384,250
Micrel, Inc. (a) .................................... 45,000 1,293,750
SIPEX Corporation (a) ............................... 40,000 1,210,000
Vitesse Semiconductor
Corporation (a) ................................. 70,000 2,642,500
World Access, Inc. (a) .............................. 41,000 978,875
ENGINEERING & MANAGEMENT SERVICES (0.08%)
Stolt Comex Seaway, S.A. (a) ........................ 10,000 500,000
ENVIRONMENTAL SERVICES (1.68%)
Allied Waste Industries, Inc. (a) ................... 116,500 2,715,906
Newpark Resources, Inc. (a) ......................... 96,000 1,680,000
U.S.A. Waste Services, Inc. (a) (b).................. 141,000 5,534,250
FABRICATED METAL PRODUCTS (0.43%)
Danaher Corporation ................................. 40,000 2,525,000
FOOD STORES (1.63%)
General Nutrition
Companies, Inc. (a) ............................. 180,000 6,120,000
Whole Foods Market, Inc. (a) ........................ 69,500 3,553,188
FOOD & KINDRED PRODUCTS (0.88%)
Interstate Bakeries Corporation ..................... 90,000 3,363,750
Smithfield Foods, Inc. (a) .......................... 56,000 1,848,000
FURNITURE & FIXTURES (0.69%)
Herman Miller, Inc. ................................. 75,000 4,092,188
FURNITURE & HOME FURNISHINGS STORES (1.02%)
Linens 'N Things, Inc. (a) .......................... 42,000 1,832,250
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
50
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
FURNITURE & HOME FURNISHINGS STORES (CONTINUED)
Pier 1 Imports, Inc. ................................. 96,000 $2,172,000
Williams-Sonoma, Inc. (a) (b) ........................ 48,000 2,010,000
GAS PRODUCTION & DISTRIBUTION (0.71%)
Cooper Cameron
Corporation (a) .................................. 69,000 4,209,000
HEALTH SERVICES (2.86%)
Concentra Managed Care,
Inc. (a) ......................................... 40,000 1,350,000
Health Care and Retirement
Corporation (a) .................................. 25,000 1,006,250
Health Management Associates,
Inc. (a) ......................................... 138,937 3,508,159
HEALTHSOUTH
Corporation (a) (b) .............................. 210,000 5,827,500
Renal Treatment Centers, Inc. (a)..................... 35,000 1,264,375
Sunrise Assisted Living, Inc. (a) .................... 15,000 646,875
Total Renal Care Holdings,
Inc. (a) ......................................... 59,166 1,627,065
Universal Health Services, Inc. -
Class B (a) ...................................... 34,000 1,712,750
HOLDING & OTHER INVESTMENT OFFICES (0.17%)
Starwood Lodging Trust (b) ........................... 17,000 983,875
HOTELS & OTHER LODGING PLACES (0.94%)
CapStar Hotel Company (a) ............................ 30,000 1,029,375
Promus Hotel Corporation (a) ......................... 72,375 3,039,750
Signature Resorts, Inc. (a) (b) ...................... 67,500 1,476,563
INDUSTRIAL MACHINERY & EQUIPMENT (1.50%)
General Scanning Inc. (a) ............................ 5,100 87,975
Smith International, Inc. (a) ........................ 73,000 4,480,375
Varco International, Inc. (a) ........................ 200,000 4,287,500
INSTRUMENTS & RELATED PRODUCTS (0.74%)
Input/Output, Inc. (a) ............................... 25,000 742,188
Uniphase Corporation (a) ............................. 88,000 3,641,000
INSURANCE (2.68%)
CMAC Investment Corporation .......................... 60,000 3,622,500
Conseco, Inc. ........................................ 201,500 9,155,656
Everest Reinsurance Holdings,
Inc. ............................................. 25,000 1,031,250
FPA Medical Management, Inc.
(a) (b) .......................................... 40,000 745,000
Mercury General Corporation .......................... 7,000 386,750
Transatlantic Holdings, Inc. ......................... 7,500 536,250
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Vesta Insurance Group, Inc. .......................... 7,000 415,625
IRON & STEEL FOUNDRIES (0.35%)
Precision Castparts Corporation ...................... 34,000 2,050,625
LEATHER & LEATHER PRODUCTS (0.27%)
Wolverine World Wide, Inc. (b) ....................... 71,250 1,612,031
LIFE INSURANCE (0.84%)
Protective Life Corporation .......................... 20,000 1,195,000
Providian Financial
Corporation (d) .................................. 55,000 2,485,313
SunAmerica, Inc. ..................................... 30,000 1,282,500
MANAGEMENT SERVICES (0.29%)
Paychex, Inc. ........................................ 34,000 1,721,250
MANUFACTURING INDUSTRIES (0.99%)
Tyco International Ltd. .............................. 130,000 5,858,125
MEDICAL INSTRUMENTS & SUPPLIES (3.27%)
Arterial Vascular Engineering,
Inc. (a) ......................................... 69,500 4,517,500
ESC Medical Systems
Limited (a) (b) .................................. 75,000 2,906,250
Guidant Corporation .................................. 135,000 8,403,750
MiniMed, Inc. (a) .................................... 30,000 1,166,250
STERIS Corporation (a) ............................... 25,000 1,206,250
Theragenics Corporation (a) .......................... 32,500 1,170,000
MISC. GENERAL MERCHANDISE STORES (0.67%)
Consolidated Stores
Corporation (a) .................................. 90,000 3,954,375
MORTGAGE BANKERS AND BROKERS (0.05%)
Imperial Credit Commercial
Mortgage Investment Corp. (a)..................... 20,000 292,500
MOTOR VEHICLES, PARTS & SUPPLIES (0.21%)
Federal-Mogul Corporation (b) ........................ 30,000 1,215,000
OIL & GAS EXTRACTION (6.37%)
BJ Services Company - warrants ....................... 14,000 643,125
BJ Services Company (a) (b) .......................... 35,000 2,517,813
Cliffs Drilling Company (a) .......................... 40,000 1,995,000
Coflexip SA - Sponsored
ADR (b) .......................................... 35,000 1,942,500
Comstock Resources, Inc. (a) ......................... 70,000 835,625
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
51
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
ENSCO International,
Incorporated (b) ................................ 197,000 $ 6,599,500
Falcon Drilling Company,
Inc. (a) (b) .................................... 135,000 4,733,438
Global Industries Ltd. (a) .......................... 103,700 1,762,900
Key Energy Group, Inc. (a) .......................... 20,000 433,750
Marine Drilling Companies,
Inc. (a) ........................................ 150,000 3,112,500
Nabors Industries, Inc. (a) ......................... 165,000 5,187,188
Parker Drilling Company (a) ......................... 53,000 645,938
Patterson Energy, Inc. (a) .......................... 24,000 928,500
Rowan Companies, Inc. (a) ........................... 160,000 4,880,000
Santa Fe International
Corporation ..................................... 36,000 1,464,750
PAPER & ALLIED PRODUCTS (0.22%)
Sealed Air Corporation (a) (b) ...................... 21,000 1,296,750
PAPER & PAPER PRODUCTS (0.27%)
U.S. Office Products
Company (a) (b) ................................. 82,500 1,619,063
PERSONAL CREDIT INSTITUTIONS (0.41%)
AmeriCredit Corporation (a) ......................... 20,000 553,750
Associates First Capital
Corporation - Class A ........................... 7,100 504,988
Capital One Financial Corporation 25,000 1,354,688
PETROLEUM & PETROLEUM PRODUCTS (0.27%)
National-Oilwell, Inc. (a) .......................... 46,000 1,572,625
PHARMACEUTICALS (2.86%)
Dura Pharmaceuticals, Inc. (a) (b)................... 113,000 5,183,875
McKesson Corporation ................................ 23,000 2,488,313
Medicis Pharmaceutical
Corporation - Class A (a) (b) ................... 52,500 2,684,063
Parexel International
Corporation (a) (b) ............................. 41,000 1,517,000
Rexall Sundown, Inc. (a) (b) ........................ 114,000 3,441,375
Watson Pharmaceuticals, Inc. (a)..................... 50,000 1,621,875
PRIMARY METAL INDUSTRIES (0.41%)
Maverick Tube
Corporation (a) (b) ............................. 50,000 1,265,625
Mueller Industries, Inc. (a) ........................ 20,000 1,180,000
PRINTING & PUBLISHING (1.28%)
Applied Graphics
Technologies, Inc. (a) .......................... 25,000 1,331,250
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PRINTING & PUBLISHING (CONTINUED)
Consolidated Graphics, Inc. (a) ..................... 40,000 $ 1,865,000
Meredith Corporation ................................ 95,000 3,390,313
Valassis Communications, Inc. (a).................... 26,000 962,000
RADIO & TELEVISION BROADCASTING (2.74%)
Chancellor Media
Corporation (a) (b) ............................. 125,500 9,365,438
Clear Channel Communications,
Inc. (a) (b) .................................... 59,500 4,726,531
Jacor Communications,
Inc. (a) (b) .................................... 30,000 1,593,750
Univision Communications, Inc. -
Class A (a) ..................................... 7,400 516,613
RADIO, TELEVISION, & COMPUTER STORES (1.53%)
Best Buy Co., Inc. (a) (b) .......................... 81,500 3,005,313
CompUSA, Inc. (a) ................................... 196,000 6,076,000
RESEARCH & TESTING SERVICES (0.65%)
Curative Health Services, Inc. (a)................... 25,000 759,375
Quintiles Transnational
Corporation (a) ................................. 80,000 3,060,000
RESTAURANTS (0.75%)
CKE Restaurants, Inc. ............................... 39,000 1,642,875
Foodmaker, Inc. (a) ................................. 50,000 753,125
Landry's Seafood Restaurants,
Inc. (a) ........................................ 43,000 1,032,000
Rainforest Cafe, Inc. (a) ........................... 30,000 990,000
RETAIL TRADE (2.93%)
Abercrombie & Fitch
Company (a) (b) ................................. 18,000 562,500
Action Performance Companies,
Inc. (a) (b) .................................... 30,000 1,136,250
Barnes & Noble, Inc. (a) ............................ 90,000 3,003,750
Bed Bath & Beyond, Inc. (a) (b) ..................... 65,000 2,502,500
Borders Group, Inc. (a) ............................. 95,000 2,974,688
Costco Companies, Inc. (a) .......................... 84,000 3,748,500
Dollar Tree Stores, Inc. (a) ........................ 31,000 1,282,625
Tech Data Corporation (a) ........................... 55,000 2,138,125
RUBBER & MISC. PLASTIC PRODUCTS (1.71%)
EVI, Inc. (a) ....................................... 100,000 5,175,000
Safeskin Corporation (a) ............................ 87,500 4,965,625
SAVINGS INSTITUTIONS (1.77%)
Astoria Financial Corporation ....................... 30,000 1,672,500
Bank United Corp. - Class A ......................... 15,000 734,063
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
52
<PAGE>
WRL SERIES FUND, INC.
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
---------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
SAVINGS INSTITUTIONS (CONTINUED)
Dime Bancorp, Inc. ............................... 38,000 $ 1,149,500
Golden State Bancorp Inc. (a) .................... 35,000 1,308,125
GreenPoint Financial
Corporation (b) .............................. 30,000 2,176,875
H. F. Ahmanson & Company ......................... 15,000 1,004,063
Sovereign Bancorp, Inc. .......................... 50,000 1,037,500
St. Paul Bancorp, Inc. ........................... 52,500 1,378,125
SECURITY & COMMODITY BROKERS (0.22%)
Lehman Brothers Holdings, Inc. ................... 25,000 1,275,000
TELECOMMUNICATIONS (1.85%)
AirTouch Communications,
Inc. (a) ..................................... 225,000 9,351,563
Brightpoint, Inc. (a) (b) ........................ 114,000 1,581,750
TRANSPORTATION EQUIPMENT (0.35%)
Halter Marine Group, Inc. (a) (b)................. 72,500 2,093,438
TRANSPORTATION & PUBLIC UTILITIES (0.10%)
Expeditors International of
Washington, Inc. ............................. 15,000 577,500
TRUCKING & WAREHOUSING (0.42%)
CNF Transportation Inc. .......................... 65,000 2,494,375
VARIETY STORES (0.86%)
Dollar General Corporation ....................... 65,000 2,356,250
Family Dollar Stores, Inc. ....................... 93,000 2,726,061
WATER TRANSPORTATION (0.13%)
Hvide Marine, Inc. -
Class A (a) (b) .............................. 30,000 772,498
WHOLESALE TRADE DURABLE GOODS (1.24%)
CHS Electronics, Inc. (a) (b) .................... 86,500 1,481,311
Gulf South Medical Supply,
Inc. (a) ..................................... 20,000 744,998
Omnicare, Inc. ................................... 120,000 3,719,998
Sybron International
Corporation (a) .............................. 30,000 1,408,123
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE NONDURABLE GOODS (0.74%)
Safeway, Inc. (a) ............................. 40,000 $ 2,529,998
Suiza Foods Corporation (a) ................... 30,600 1,822,611
------------
Total Common Stocks
(cost: $ 407,062,570)....................................... 559,818,187
------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (5.43%)
Federal Home Loan Bank
Discount Note
5.75%, due 01/02/98 ...................... $ 32,160,000 $ 32,154,863
------------
Total Short-Term
U.S. Government Obligations
(cost: $ 32,154,863)......................................... 32,154,863
------------
Total Investment Securities
(cost: $ 439,217,510)........................................ $591,973,148
============
SUMMARY
Investments at market value .................. 99.99% $ 591,973,148
Other Assets in Excess of
Liabilities ............................... 0.01% 29,915
------ -------------
Net Assets ................................... 100.00% $ 592,003,063
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 111,649,648. See footnote 1F
to the financial statements.
(c) Percentage is less than .01%.
(d) Affiliated company. See footnote 2C 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 7 A n n u a l R e p o r t
53
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
---------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (93.99%)
AEROSPACE (0.37%)
Gulfstream Aerospace
Corporation (a) ................................. 43,000 $ 1,257,750
AIR TRANSPORTATION (3.80%)
AMR Corporation (a) (b) ............................. 72,600 9,329,099
US Airways Group Inc. (a) ........................... 55,200 3,450,000
BEVERAGES (0.21%)
PepsiCo, Inc. ....................................... 19,200 699,600
BUSINESS SERVICES (3.98%)
Cendent Corporation (a) ............................. 279,000 9,590,625
Outdoor Systems, Inc. (a) ........................... 99,000 3,799,125
COMMERCIAL BANKS (6.68%)
Banc One Corporation ................................ 63,600 3,454,275
Bank of New York Company, Inc........................ 131,300 7,590,780
BankAmerica Corporation ............................. 44,600 3,255,800
CoreStates Financial Corporation..................... 27,000 2,161,688
Fifth Third Bancorp ................................. 20,100 1,643,175
First Union Corporation (b) ......................... 36,500 1,870,625
U.S. Bancorp (b) .................................... 22,200 2,485,013
COMMUNICATIONS EQUIPMENT (3.33%)
Bay Networks, Inc (a) ............................... 141,100 3,606,869
CIENA Corporation (a) ............................... 79,500 4,859,438
Tellabs, Inc. (a) (b) ............................... 51,400 2,717,775
COMPUTER & DATA PROCESSING SERVICES (6.96%)
America Online, Inc. (a) ............................ 76,500 6,822,844
Citrix Systems, Inc. (a) ............................ 20,000 1,520,000
Cognizant Corporation ............................... 77,500 3,453,594
HBO & Company (b) ................................... 108,600 5,212,800
Microsoft Corporation (a) ........................... 49,200 6,359,100
COMPUTER & OFFICE EQUIPMENT (3.93%)
Cisco Systems, Inc. (a) ............................. 111,300 6,204,975
International Game
Technology (b) .................................. 277,900 7,016,975
DEPARTMENT STORES (3.42%)
Fred Meyer, Inc. (a) (b) ............................ 93,500 3,401,063
Wal-Mart Stores, Inc. ............................... 205,300 8,096,518
DRUG STORES & PROPRIETARY STORES (2.05%)
CVS Corporation ..................................... 53,500 3,427,344
Rite Aid Corporation (b) ............................ 59,000 3,462,563
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRICAL GOODS (2.75%)
CBS Corporation ..................................... 314,000 $ 9,243,374
ELECTRONIC COMPONENTS & ACCESSORIES (2.75%)
Altera Corporation (a) .............................. 103,000 3,411,875
Linear Technology Corporation ....................... 101,500 5,848,938
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.76%)
Sunbeam Corporation ................................. 220,300 9,280,137
ENGINEERING & MANAGEMENT SERVICES (1.05%)
Halliburton Company ................................. 67,800 3,521,363
ENVIRONMENTAL SERVICES (1.45%)
USA Waste Services, Inc. (a) ........................ 124,550 4,888,588
FABRICATED METAL PRODUCTS (0.35%)
Masco Corporation ................................... 23,300 1,185,388
FINANCE (1.17%)
Freddie Mac ......................................... 94,100 3,946,319
FOOD STORES (0.57%)
General Nutrition
Companies, Inc. (a) ............................. 56,700 1,927,800
HOLDING & OTHER INVESTMENT OFFICES (1.00%)
Consolidated Capital
Corporation (a) ................................. 81,700 1,659,531
Starwood Lodging Trust (b) .......................... 29,500 1,707,313
INSURANCE (4.52%)
American International
Group, Inc. ..................................... 53,000 5,763,750
MGIC Investment Corporation ......................... 40,000 2,660,000
Travelers Group, Inc. ............................... 125,600 6,766,700
LUMBER & OTHER BUILDING MATERIALS (3.09%)
Home Depot, Inc. .................................... 176,650 10,400,268
MANAGEMENT SERVICES (1.19%)
Paychex, Inc. ....................................... 78,700 3,984,188
MANUFACTURING INDUSTRIES (3.01%)
Mattel, Inc. ........................................ 85,800 3,196,050
Tyco International Ltd. ............................. 153,274 6,906,910
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
54
<PAGE>
WRL SERIES FUND, INC.
AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
---------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS & SUPPLIES (3.04%)
Guidant Corporation ................................ 164,000 $ 10,208,999
MORTGAGE BANKERS AND BROKERS (0.53%)
The Money Store, Inc. (b) .......................... 85,000 1,785,000
OIL & GAS EXTRACTION (0.74%)
Diamond Offshore
Drilling, Inc. (b) ............................. 51,700 2,488,063
PERSONAL CREDIT INSTITUTIONS (0.53%)
Household International, Inc. ...................... 14,000 1,785,875
PHARMACEUTICALS (14.90%)
AmeriSource Health Corporation -
Class A (a) .................................... 54,100 3,178,375
Bergen Brunswig Corporation -
Class A ........................................ 40,000 1,685,000
BioChem Pharma, Inc. (a) (b) ....................... 109,400 2,283,725
Bristol-Myers Squibb Company ....................... 87,000 8,232,374
Cardinal Health, Inc. .............................. 53,600 4,026,700
Eli Lilly & Company ................................ 105,300 7,331,513
McKesson Corporation ............................... 17,000 1,839,188
Pfizer, Inc. ....................................... 64,100 4,779,456
Schering-Plough Corporation ........................ 150,400 9,343,599
Warner-Lambert Company ............................. 59,500 7,378,000
RAILROADS (1.50%)
Burlington Northern Santa Fe ....................... 54,100 5,027,919
RESTAURANTS (1.30%)
CKE Restaurants, Inc. .............................. 103,500 4,359,938
RETAIL TRADE (1.33%)
Staples, Inc. (a) .................................. 161,000 4,467,750
SECURITY & COMMODITY BROKERS (4.02%)
Charles Schwab Corporation ......................... 104,100 4,365,694
Morgan Stanley, Dean Witter,
Discover and Co. ............................... 122,975 7,270,896
Paine Webber Group Inc. ............................ 54,300 1,876,744
TELECOMMUNICATIONS (1.82%)
AT&T Corporation ................................... 27,900 1,708,875
WorldCom, Inc. (a) (b) ............................. 145,900 4,413,475
VARIETY STORES (0.51%)
Family Dollar Stores, Inc. ......................... 59,000 1,729,438
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
WATER TRANSPORTATION (2.16%)
Carnival Corporation - Class A ..................... 130,900 $ 7,248,587
WHOLESALE TRADE NONDURABLE GOODS (1.22%)
Safeway Inc. (a) ................................... 65,000 4,111,250
------------
Total Common Stocks
(cost: $ 262,430,500)......................................... 315,974,338
------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
Investors Bank & Trust Company (c)
5.90%, Repurchase
Agreement dated 12/31/97
to be repurchased at
$ 15,745,476 on 01/02/98.................. $ 15,740,316 $ 15,740,316
------------
Total Short-Term Obligation
(cost: $ 15,740,316)......................................... 15,740,316
------------
Total Investment Securities
(cost: $ 278,170,816)........................................ $331,714,654
============
SUMMARY
Investments at market value .................... 98.68% $ 331,714,654
Other Assets in
Excess of Liabilities ....................... 1.32% 4,451,676
------ -------------
Net Assets ..................................... 100.00% $ 336,166,330
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 27,526,511. See footnote 1F to
the financial statements.
(c) Collateralized by $ 20,000,000 Federal Home Loan Mortgage Corporation,
Adjustable Rate Mortgage 7.80% due 02/01/23; $ 365,000 Federal Home Loan
Mortgage Corporation, Adjustable Rate Mortgage 8.30% due 10/01/25; $
9,766,000 Federal National Mortgage Association 6.50% due 07/01/14; market
value and accrued interest aggregated $ 8,140,432, $ 290,436, and $
8,096,792, respectively, for the collateral at December 31, 1997.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
55
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
U.S. GOVERNMENT OBLIGATIONS (32.96%)
U.S. Treasury Bonds
7.25%, due 05/15/16 ................... $ 2,000,000 $ 2,276,980
U.S. Treasury Bonds
7.50%, due 11/15/16 ................... 2,000,000 2,334,660
U.S. Treasury Bonds
7.13%, due 02/15/23 ................... 2,000,000 2,282,880
U.S. Treasury Notes
7.00%, due 04/15/99 ................... 1,500,000 1,524,975
U.S. Treasury Notes
7.13%, due 09/30/99 ................... 1,500,000 1,535,580
U.S. Treasury Notes
6.00%, due 08/15/00 ................... 2,000,000 2,014,220
U.S. Treasury Notes
6.38%, due 08/15/02 ................... 2,000,000 2,051,120
U.S. Treasury Notes
7.25%, due 08/15/04 ................... 2,000,000 2,161,760
U.S. Treasury Notes
6.50%, due 05/15/05 ................... 2,000,000 2,083,960
U.S. Treasury Notes
6.50%, due 10/15/06 ................... 2,000,000 2,093,840
U.S. Treasury Notes (b)
6.13%, due 08/15/07 ................... 2,000,000 2,054,860
U.S. Treasury Strips (b)
7.63%, due 02/15/25 ................... 9,000,000 1,792,080
-----------
Total U.S. Government
Obligations
(cost: $ 23,064,133)...................................... 24,206,915
------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE PREFERRED STOCKS (7.98%)
AGRICULTURE (1.13%)
Dole Food Company ......................... 19,000 $ 826,500
BUSINESS SERVICES (2.90%)
Snyder STRYPES Trust (a) .................. 33,000 1,122,000
WBK STRYPES Trust (a) ..................... 30,000 1,005,000
HOLDING & OTHER INVESTMENT OFFICES (2.87%)
Conseco Finance Trust ..................... 20,000 1,025,000
Walden Residential
Properties, Inc. (a) .................. 37,000 1,091,500
LIFE INSURANCE (1.08%)
SunAmerica, Inc. .......................... 17,000 791,563
-----------
Total Convertible Preferred Stocks
(cost: $ 5,215,983)....................................... 5,861,563
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
PREFERRED STOCKS (2.49%)
HOLDING & OTHER INVESTMENT OFFICES (2.49%)
CRI Insured Mortgage
Association, Inc. (a) ................. 23,500 $ 803,406
Equity Residential Properties ............. 40,000 1,025,000
-----------
Total Preferred Stocks
(cost: $ 1,604,475)....................................... 1,828,406
---------
COMMON STOCKS (55.75%)
AUTOMOTIVE DEALERS & SERVICE STATIONS (1.39%)
Ugly Duckling
Corporation (a) (b) ................... 120,000 1,020,000
AIR TRANSPORTATION (1.11%)
Linea Aerea Nacional Chile S.A.
ADR (a) (b) ........................... 60,000 817,500
AMUSEMENT & RECREATION SERVICES (0.57%)
Colonial Downs Holdings, Inc. (a).......... 120,000 420,000
AUTOMOTIVE (0.96%)
Chrysler Corporation ...................... 20,000 703,750
COMMERCIAL BANKS (4.60%)
Atlantic Bank & Trust
Company (a) ........................... 30,000 420,000
BankAmerica Corporation ................... 13,200 963,600
Chase Manhattan Corporation ............... 8,000 876,000
Norwest Corporation ....................... 29,000 1,120,125
COMMUNICATIONS EQUIPMENT (1.27%)
SymmetriCom, Inc. (a) ..................... 80,000 930,000
COMPUTER & DATA PROCESSING SERVICES (2.39%)
Computer Associates
International, Inc. ................... 18,750 991,406
Credit Management
Solutions, Inc. (a) ................... 59,000 767,000
COMPUTER & OFFICE EQUIPMENT (1.11%)
Hewlett-Packard Company ................... 13,000 812,500
DEPARTMENT STORES (2.97%)
Federated Department Stores,
Inc. (a) .............................. 25,000 1,076,563
Wal-Mart Stores, Inc. ..................... 28,000 1,104,250
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
56
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
---------------------------------
NUMBER OF MARKET
SHARE VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRIC SERVICES (1.46%)
Endesa S.A. - Sponsored ADR ......................... 59,000 $ 1,073,063
ELECTRICAL GOODS (1.48%)
Motorola, Inc. ...................................... 19,000 1,084,188
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.30%)
General Electric Company ............................ 13,000 953,875
FINANCE (3.04%)
Fannie Mae .......................................... 20,000 1,141,250
Student Loan Marketing
Association ..................................... 7,865 1,094,218
GAS PRODUCTION & DISTRIBUTION (1.06%)
Sonat, Inc. (b) ..................................... 17,000 777,750
HEALTH SERVICES (0.45%)
BioSource International, Inc. (a) ................... 51,500 328,313
HOLDING & OTHER INVESTMENT OFFICES (5.77%)
Annaly Mortgage Management,
Inc. 144A (a) (c) ............................... 105,000 1,154,999
Consolidated Capital Corporation
(a) (b) ......................................... 45,000 914,063
LTC Properties, Inc. ................................ 46,000 954,500
Shurgood Storage Centers, Inc. -
Class A ......................................... 19,000 551,000
Storage USA, Inc. ................................... 16,500 658,969
INSTRUMENTS & RELATED PRODUCTS (0.59%)
Mettler-Toledo International
Inc. (a) ........................................ 25,000 431,250
INSURANCE (3.97%)
Allstate Corporation ................................ 12,000 1,090,499
Travelers Group, Inc. ............................... 20,000 1,077,499
United Healthcare Corporation ....................... 15,000 745,313
MINING (1.24%)
Potash Corporation of
Saskatchewan, Inc. (b) ................... ....... 11,000 913,000
MORTGAGE BANKERS AND BROKERS (2.92%)
Imperial Credit Commercial
Mortgage Investment Corp. ....................... 40,000 585,000
Long Beach Financial
Corporation (a) ................................. 70,000 813,750
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
MORTGAGE BANKERS AND BROKERS (CONTINUED)
Mego Financial Corp. (a) ............................ 65,000 $ 300,625
Mego Mortgage Corporation (a) ....................... 110,000 446,875
OIL & GAS EXTRACTION (1.48%)
Dresser Industries, Inc. (b) ........................ 26,000 1,090,374
PERSONAL CREDIT INSTITUTIONS (.52%)
Consumer Portfolio Services, Inc.
(a) (b) ......................................... 40,000 385,000
PHARMACEUTICALS (2.59%)
Abbott Laboratories ................................. 15,000 983,438
American Home Products
Corporation ..................................... 12,000 918,000
RAILROADS (1.39%)
Burlington Northern Santa Fe ........................ 11,000 1,022,313
REAL ESTATE (1.16%)
Westfield America, Inc. ............................. 50,000 850,000
SAVINGS INSTITUTIONS (2.08%)
ITLA Capital Corporation (a) ........................ 33,000 635,250
Washington Mutual, Inc. ............................. 14,000 893,375
SECURITY & COMMODITY BROKERS (0.54%)
Alliance Capital Management, L.P..................... 10,000 398,125
STONE, CLAY & GLASS PRODUCTS (1.46%)
Gentex Corporation (a) .............................. 40,000 1,075,000
TELECOMMUNICATIONS (2.60%)
Frontier Corporation ................................ 44,000 1,058,750
GTE Corporation ..................................... 16,300 851,675
TOBACCO PRODUCTS (2.28%)
Philip Morris Companies, Inc. ....................... 18,000 815,625
Heartland Express, Inc. (a) ......................... 32,000 860,000
-----------
Total Common Stocks
(cost: $ 35,535,066)........................................... 40,949,618
-----------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
57
<PAGE>
WRL SERIES FUND, INC.
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM OBLIGATION (0.30%)
Prudential-Bache Securities, Inc. (d)
6.07%, Repurchase Agreement
dated 12/31/97 to be repurchased
at $ 220,318 on 01/02/98...................... $ 220,244 $ 220,244
------------
Total Short-Term Obligation
(cost: $ 220,244).......................................... 220,244
------------
Total Investment Securities
(cost: $ 65,639,901)....................................... $ 73,066,746
============
SUMMARY
Investments at market value ................... 99.48% $ 73,066,746
Other Assets in Excess of
Liabilities ............................... 0.52% 383,809
--------- ------------
Net Assets .................................... 100.00% $ 73,450,555
========= ============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 8,478,597. 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 $ 140,228 U.S. Treasury Bond 11.25% due 02/15/15; market
value and accrued interest aggregated $ 224,649 for this collateral at
December 31, 1997.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
58
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (e)
SCHEDULE OF INVESTMENTS
December 31, 1997
-----------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
U.S. GOVERNMENT OBLIGATIONS (11.68%)
U.S. Treasury Notes
6.38%, due 04/30/99 ........................ $ 7,000,000 $ 7,063,434
-----------
Total U.S. Government Obligations
(cost: $ 7,033,471)............................................ 7,063,434
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
CONVERTIBLE PREFERRED STOCKS (3.78%)
GAS PRODUCTION & DISTRIBUTION (1.40%)
MCN Financing III .............................. 13,500 $ 843,750
SECURITY & COMMODITY BROKERS (2.38%)
Merrill Lynch STRYPES .......................... 15,700 541,650
Salomon, Inc. DECS ............................. 15,200 900,600
-----------
Total Convertible Preferred Stocks
(cost: $ 2,198,024)............................................ 2,286,000
-----------
COMMON STOCKS (70.90%)
AUTOMOTIVE (1.76%)
Federal Signal Corporation ..................... 49,300 1,066,113
BUSINESS SERVICES (0.97%)
Kelly Services, Inc. - Class A ................. 19,500 585,000
CHEMICALS & ALLIED PRODUCTS (1.46%)
ARCO Chemical Company .......................... 18,900 882,394
ELECTRIC SERVICES (15.14%)
DQE, Inc. ...................................... 33,300 1,169,663
FPL Group, Inc. ................................ 9,500 562,281
LG&E Energy Corporation ........................ 22,300 551,925
Montana Power Company .......................... 35,500 1,129,344
NIPSCO Industries, Inc. (a) .................... 25,100 1,240,881
Puget Sound Energy, Inc. ....................... 51,100 1,542,581
Sierra Pacific Resources ....................... 36,000 1,350,000
Teco Energy, Inc. .............................. 36,000 1,012,500
Western Resources, Inc. ........................ 14,000 602,000
ELECTRIC, GAS & SANITARY SERVICES (1.11%)
PG&E Corporation ............................... 22,000 669,625
FOOD STORES (0.94%)
Food Lion, Inc. - Class A ...................... 67,000 565,313
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
FOOD & KINDRED PRODUCTS (2.74%)
General Mills, Inc. ............................ 6,900 $ 494,213
McCormick & Company, Inc. ...................... 41,500 1,162,000
GAS PRODUCTION & DISTRIBUTION (12.81%)
Atmos Energy Corporation ....................... 51,600 1,560,900
Cascade Natural Gas Corporation................. 37,300 699,375
Connecticut Energy Corporation ................. 8,800 265,100
El Paso Natural Gas Company .................... 21,000 1,396,500
Laclede Gas Company ............................ 35,200 987,800
NGC Corporation (b) ............................ 10,300 180,250
North Carolina Natural Gas
Corporation ................................ 10,200 354,450
Northwest Natural Gas Company................... 34,800 1,078,800
UtiliCorp United, Inc. (a) ..................... 31,500 1,222,594
HOLDING & OTHER INVESTMENT OFFICES (24.16%)
ABB AB - Sponsored ADR (a) ..................... 6,000 706,500
Amli Residential Properties Trust............... 45,700 1,016,825
Associated Estates Realty
Corporation ................................ 71,500 1,693,656
Avalon Properties, Inc. ........................ 34,500 1,067,344
Colonial Properties Trust ...................... 24,500 738,063
Equity Residential Properties Trust............. 20,500 1,036,531
Liberty Property Trust ......................... 31,800 908,288
Meditrust Corporation .......................... 33,644 1,232,212
Merry Land & Investment
Company, Inc. .............................. 32,500 743,438
Nationwide Health Properties,
Inc. ....................................... 19,000 484,500
New Plan Realty Trust .......................... 30,900 787,950
Post Properties, Inc. (a) ...................... 20,400 828,750
Price REIT, Inc. ............................... 27,500 1,125,780
Security Capital Industrial Trust .............. 34,690 862,913
Security Capital Pacific Trust (a) ............. 34,857 845,280
Storage USA, Inc. .............................. 13,500 539,155
INDUSTRIAL MACHINERY & EQUIPMENT (1.86%)
Tecumseh Products Company ...................... 23,100 1,126,125
LIFE INSURANCE (1.00%)
Liberty Corporation ............................ 13,000 607,750
METAL MINING (1.29%)
Barrick Gold Corporation ....................... 41,800 778,525
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
59
<PAGE>
WRL SERIES FUND, INC.
GROWTH & INCOME PORTFOLIO (e)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
-----------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (1.78%)
Equitable Resources, Inc. .................... 30,500 $ 1,078,938
PETROLEUM REFINING (2.96%)
MAPCO, Inc. .................................. 22,000 1,017,500
Ultramar Diamond Shamrock
Corporation .............................. 24,300 774,563
PRINTING & PUBLISHING (0.92%)
Reader's Digest Association, Inc. -
Class A .................................. 23,600 557,550
TELECOMMUNICATIONS (C)
SBC Communications, Inc. ..................... 1 40
------------
Total Common Stocks
(cost: $ 38,519,617)...................................... 42,889,778
------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM OBLIGATION (14.99%)
Greenwich Capital Markets, Inc. (d)
6.10%, Repurchase Agreement
dated 12/31/97 to be
repurchased at $ 9,073,074 on
01/02/98 .................................... $ 9,070,000 $ 9,070,000
------------
Total Short-Term Obligation
(cost: $ 9,070,000)............................................. 9,070,000
------------
Total Investment Securities
(cost: $ 56,821,112)........................................... $ 61,309,212
============
Investments at market value .................. 101.35% $ 61,309,212
Other Liabilities in
Excess of Assets ......................... ( 1.35%) (816,720)
----------- ------------
Net Assets ................................... 100.00% $ 60,492,492
=========== ============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 4,096,847. See footnote 1F to
the financial statements.
(b) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(c) Industry percentage is less than .01%.
(d) Collateralized by $ 8,954,000 U.S. Treasury Notes 8.13% due 02/15/98;
market value and accrued interest aggregated $ 9,253,400 for this
collateral at December 31, 1997.
(e) Prior to May 1, 1997, this portfolio was named Utility.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
60
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
-----------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
U.S. GOVERNMENT OBLIGATIONS (11.37%)
U.S. Treasury Notes
5.38%, due 05/31/98 .................... $ 4,000,000 $ 3,997,680
U.S. Treasury Notes
5.88%, due 08/15/98 .................... 2,000,000 2,003,120
U.S. Treasury Notes
7.13%, due 10/15/98 .................... 3,000,000 3,034,770
U.S. Treasury Notes (b)
6.88%, due 03/31/00 .................... 2,500,000 2,561,325
U.S. Treasury Notes (b)
6.25%, due 10/31/01 .................... 5,000,000 5,082,600
U.S. Treasury Notes
6.50%, due 05/15/05 .................... 10,000,000 10,419,800
U.S. Treasury Notes
6.50%, due 10/15/06 .................... 7,000,000 7,328,440
-----------
Total U.S. Government
Obligations
(cost: $ 34,257,677)...................................... 34,427,735
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS (5.81%)
Federal Farm Credit Banks
6.00%, due 06/24/99 .................... 5,000,000 4,994,250
Federal Home Loan Bank
6.25%, due 06/24/02 .................... 4,000,000 4,025,760
Federal Home Loan Bank
zero coupon, due 01/21/03 .............. 5,000,000 3,547,000
Student Loan Marketing
Association
6.25%, due 03/17/00 .................... 5,000,000 5,031,050
-----------
Total U.S. Government Agency
Obligations
(cost: $ 17,532,429)...................................... 17,598,060
-----------
CORPORATE DEBT SECURITIES (20.66%)
APPAREL & ACCESSORY STORES (1.68%)
Nordstrom Credit, Inc.
6.70%, due 07/01/05 .................... 5,000,000 5,100,000
AUTOMOTIVE (1.69%)
Chrysler Financial Corporation
6.95%, due 03/25/02 .................... 5,000,000 5,118,750
BUSINESS CREDIT INSTITUTIONS (1.66%)
Potomac Capital Investment
Corporation - 144A (d)
6.80%, due 09/12/01 .................... 5,000,000 5,018,750
CHEMICALS & ALLIED PRODUCTS (2.60%)
E. I. du Pont de Nemours
and Company
6.50%, due 09/01/02 .................... 7,750,000 7,856,563
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (CONTINUED)
ELECTRIC SERVICES (2.65%)
Texas Utilities Company
6.38%, due 10/01/04 .................... $ 8,000,000 $ 8,020,000
FABRICATED METAL PRODUCTS (0.33%)
Masco Corporation
6.63%, due 09/15/99 .................... 1,000,000 1,010,000
FINANCE (4.97%)
Fannie Mae (c)
5.95%, due 04/14/00 .................... 5,000,000 4,998,450
Freddie Mac
7.10%, due 02/20/04 .................... 5,000,000 5,002,750
Norwest Financial, Inc.
6.38%, due 11/15/03 .................... 5,000,000 5,037,500
HOLDING & OTHER INVESTMENT OFFICES (1.78%)
URC Holdings Corporation - 144A (d)
7.88%, due 06/30/06 ....................... 5,000,000 5,400,000
HOTELS & OTHER LODGING PLACES (1.65%)
Hilton Hotels Corporation
7.00%, due 07/15/04 .................... 5,000,000 5,000,000
PERSONAL CREDIT INSTITUTIONS (1.65%)
Ford Motor Credit Company (c)
5.65%, due 11/09/98 .................... 5,000,000 4,993,430
-----------
Total Corporate Debt Securities
(cost: $ 61,597,123)...................................... 62,556,193
-----------
NUMBER OF MARKET
SHARES VALUE
--------- ------
PREFERRED STOCKS (2.47%)
FINANCE (0.34%)
New Jersey Economic
Development Authority ..................... 40,000 $ 1,040,000
MOTION PICTURES (2.13%)
The News Corporation Limited -
Sponsored ADR (b) ......................... 325,000 6,459,375
-----------
Total Preferred Stocks
(cost: $ 6,511,562)..................................... 7,499,375
-----------
COMMON STOCKS (49.42%)
AIR TRANSPORTATION (0.94%)
Comair Holdings, Inc. ......................... 117,500 2,834,688
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 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
December 31, 1997
(continued)
----------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
AUTOMOTIVE (1.97%)
Chrysler Corporation ................................ 100,000 $ 3,518,750
Ford Motor Company .................................. 50,000 2,434,375
COMMUNICATION (1.45%)
Cox Communications, Inc. -
Class A (a) ..................................... 110,000 4,406,875
COMMUNICATIONS EQUIPMENT (0.93%)
ECI Telecommunications Limited....................... 110,000 2,805,000
COMPUTER & DATA PROCESSING SERVICES (1.64%)
NCR Corporation (a) (b) ............................. 178,750 4,971,484
COMPUTER & OFFICE EQUIPMENT (1.21%)
Seagate Technology, Inc. (a) ........................ 190,000 3,657,500
ELECTRIC SERVICES (4.90%)
DPL Inc. ............................................ 101,000 2,903,750
Houston Industries, Incorporated .................... 150,000 4,003,125
Illinova Corporation ................................ 150,000 4,040,625
Southern Company (b) ................................ 150,000 3,881,250
ELECTRICAL GOODS (1.07%)
Arrow Electronics, Inc. (a) (b) ..................... 100,000 3,243,750
ELECTRONIC COMPONENTS & ACCESSORIES (1.16%)
Intel Corporation ................................... 50,000 3,512,500
FINANCE (2.38%)
Fannie Mae .......................................... 60,000 3,423,750
Freddie Mac ......................................... 90,000 3,774,375
HOLDING & OTHER INVESTMENT OFFICES (4.35%)
Health Care Property
Investors, Inc. ................................. 82,300 3,111,969
Merry Land & Investment
Company, Inc. ................................... 150,000 3,431,250
Simon DeBartolo Group, Inc. ......................... 40,000 1,307,500
Trizec Hahn Corporation ............................. 100,000 2,318,750
United Dominion Realty
Trust, Inc. ..................................... 215,000 2,996,562
INDUSTRIAL MACHINERY & EQUIPMENT (2.93%)
AGCO Corporation (b) ................................ 125,000 3,656,250
Applied Materials, Inc. (a) ......................... 125,000 3,765,625
Briggs & Stratton Corporation ....................... 30,000 1,456,875
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INSURANCE (5.12%)
AFLAC Incorporated .................................. 75,000 $ 3,834,375
Ambac Financial Group, Inc. ......................... 70,000 3,220,000
Frontier Insurance Group, Inc. (b)................... 100,000 2,287,500
PMI Group, Inc. (b) ................................. 85,000 6,146,562
MINING (1.37%)
Potash Corporation of
Saskatchewan, Inc. (b) .......................... 50,000 4,150,000
MORTGAGE BANKERS AND BROKERS (3.27%)
Countrywide Credit
Industries, Inc. ................................ 128,400 5,505,150
Green Tree Financial Corporation..................... 140,000 3,666,250
Imperial Credit Commercial
Mortgage Investment Corp. ....................... 50,000 731,250
PRIMARY METAL INDUSTRIES (2.23%)
Alumax, Inc. (a) .................................... 95,000 3,230,000
Aluminum Company of America ......................... 50,000 3,518,750
RESIDENTIAL BUILDING CONSTRUCTION (1.61%)
Clayton Homes, Inc. ................................. 270,000 4,860,000
RETAIL TRADE (1.98%)
Fingerhut Companies, Inc. ........................... 75,000 1,603,125
Toys "R" Us, Inc. (a) ............................... 140,000 4,401,250
SECURITY & COMMODITY BROKERS (0.84%)
Lehman Brothers Holdings, Inc. ...................... 50,000 2,550,000
SHOE STORES (1.44%)
Payless ShoeSource, Inc. (a) ........................ 65,000 4,363,125
TELECOMMUNICATIONS (4.39%)
360 Communications
Company (a) ..................................... 300,000 6,056,250
AT&T Corporation .................................... 75,000 4,593,750
Sprint Corporation .................................. 45,000 2,638,125
TOBACCO PRODUCTS (1.50%)
Philip Morris Companies, Inc. ....................... 100,000 4,531,250
TRANSPORTATION EQUIPMENT (0.74%)
Trinity Industries, Inc. ............................ 50,000 2,231,250
-----------
Total Common Stocks
(cost: $ 125,080,936)......................................... 149,574,540
-----------
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
62
<PAGE>
WRL SERIES FUND, INC.
TACTICAL ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
----------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
COMMERCIAL PAPER (9.79%)
Anchor Funding Corporation
7.35%, due 01/14/98 .......... $ 311,000 $ 310,175
Broadway Capital Corp.
6.20%, due 01/08/98 .......... 922,000 920,888
Broadway Capital Corp.
6.35%, due 01/06/98 .......... 9,200,000 9,191,886
Creative Capital Corp.
7.05%, due 01/20/98 .......... 2,900,000 2,889,210
Gotham Funding Corporation
6.20%, due 01/09/98 .......... 3,572,000 3,567,079
Industrial Funding Corp.
6.25%, due 01/05/98 .......... 850,000 849,410
Industrial Funding Corp.
6.25%, due 01/12/98 .......... 2,000,000 1,996,180
Industrial Funding Corp.
6.25%, due 01/14/98 .......... 1,000,000 997,743
Industrial Funding Corp.
6.25%, due 01/16/98 .......... 6,000,000 5,984,375
KZH Holding Corporation
7.00%, due 01/08/98 .......... 733,000 732,002
KZH Holding Corporation
5.97%, due 01/05/98 .......... 2,200,000 2,198,541
-------------
Total Commercial Paper
(cost: $ 29,637,489).......................... 29,637,489
-------------
Total Investment Securities
(cost: $ 274,617,216)......................... $ 301,293,392
=============
SUMMARY
Investments at market value .... 99.52% $ 301,293,392
Other Assets in
Excess of Liabilities ....... 0.48% 1,451,151
------ -------------
Net Assets ..................... 100.00% $ 302,744,543
====== =============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) As of December 31, 1997, the security is on loan. The market value of all
securities on loan at December 31, 1997 is $ 31,749,858. See footnote 1F to
the financial statements.
(c) Floating rate security. Rate listed is as of December 31, 1997.
(d) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
ADR American Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
63
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
-----------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (94.01%)
AEROSPACE (3.51%)
GenCorp, Inc. ...................................... 47,000 $ 1,175,000
Thiokol Corporation ................................ 11,700 950,625
AIR TRANSPORTATION (5.61%)
Airborne Freight Corporation ....................... 20,000 1,242,500
Federal Express Corporation (a) .................... 15,000 915,938
UAL Corporation (a) ................................ 6,000 555,000
US Airways Group Inc. (a) .......................... 11,000 687,500
APPAREL PRODUCTS (2.49%)
Nautica Enterprises, Inc. (a) ...................... 31,000 720,750
U.S. Industries, Inc. .............................. 26,100 786,263
APPAREL & ACCESSORY STORES (0.90%)
Claire's Stores, Inc. .............................. 28,000 544,250
CHEMICALS & ALLIED PRODUCTS (1.72%)
Dexter Corporation ................................. 24,200 1,045,138
COMMERCIAL BANKS (4.94%)
Chase Manhattan Corporation ........................ 5,000 547,500
Magna Group, Inc. .................................. 22,200 1,015,650
North Fork Bancorporation, Inc. .................... 18,000 604,125
Provident Bankshares Corporation.................... 1 34
Provident Financial Group, Inc. .................... 17,000 824,500
COMMUNICATIONS EQUIPMENT (3.09%)
DSC Communications
Corporation (a) ................................ 35,000 840,000
Harris Corporation ................................. 12,000 550,500
Lucent Technologies, Inc. .......................... 6,000 479,250
COMPUTER & DATA PROCESSING SERVICE (5.57%)
Banyan Systems, Inc. (a) ........................... 33,100 97,231
Oracle Corporation (a) ............................. 27,000 602,438
Structural Dynamics Research
Corporation (a) ................................ 61,500 1,383,750
Sun Microsystems, Inc. (a) ......................... 32,400 1,291,950
COMPUTER & OFFICE EQUIPMENT (9.56%)
3Com Corporation (a) ............................... 21,000 733,688
Applied Magnetics
Corporation (a) ................................ 42,000 467,250
Cisco Systems, Inc. (a) ............................ 10,500 585,375
Compaq Computer Corporation ........................ 16,000 903,000
Creative Technology Limited (a) .................... 51,000 1,122,000
International Business Machines
Corporation .................................... 5,000 522,813
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (CONTINUED)
Quantum Corporation (a) .............................. 33,000 $ 662,063
Western Digital Corporation (a) ...................... 32,000 514,000
Xircom, Inc. (a) ..................................... 28,000 281,750
DEPARTMENT STORES (3.73%)
Dayton Hudson Corporation ............................ 8,000 540,000
TJX Companies, Inc. .................................. 37,000 1,271,875
Woolworth Corporation (a) ............................ 22,000 448,250
ELECTRIC SERVICES (1.52%)
CalEnergy Company, Inc. (a) .......................... 32,000 920,000
ELECTRICAL GOODS (0.80%)
Arrow Electronics, Inc. (a) .......................... 15,000 486,563
ELECTRONIC COMPONENTS & ACCESSORIES (4.43%)
Intel Corporation .................................... 14,000 983,500
Park Electrochemical Corp. ........................... 31,000 879,625
Read-Rite Corporation (a) ............................ 52,000 819,000
HEALTH SERVICES (0.58%)
NovaCare, Inc. (a) ................................... 26,700 348,769
HOTELS & OTHER LODGING PLACES (1.18%)
Prime Hospitality Corporation (a)..................... 35,000 713,125
INDUSTRIAL MACHINERY & EQUIPMENT (10.29%)
Cincinnati Milacron, Inc. ............................ 34,000 881,875
Cummins Engine Company, Inc. ......................... 9,000 531,563
Deere & Company ...................................... 20,000 1,166,250
Manitowoc Company, Inc. .............................. 27,000 877,500
SPS Technologies, Inc. (a) ........................... 15,400 671,825
Timken Company ....................................... 31,000 1,065,625
US Filter Corporation (a) ............................ 35,000 1,047,813
INSTRUMENTS & RELATED PRODUCTS (2.36%)
Eastman Kodak Company ................................ 9,000 547,313
Xerox Corporation .................................... 12,000 885,750
INSURANCE (3.74%)
Selective Insurance Group, Inc. ...................... 42,000 1,134,000
Travelers Group, Inc. ................................ 21,000 1,131,375
LEATHER & LEATHER PRODUCTS (0.19%)
Genesco Inc. (a) ..................................... 9,000 114,750
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
64
<PAGE>
WRL SERIES FUND, INC.
C.A.S.E. GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
----------------------------------
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (0.82%)
SunAmerica, Inc. ................................. 8,500 $ 363,375
Torchmark Corporation ............................ 3,200 134,600
MEDICAL INSTRUMENTS & SUPPLIES (2.26%)
Datascope Corporation (a) ........................ 24,500 633,938
Respironics, Inc. (a) ............................ 33,000 738,375
OIL & GAS EXTRACTION (3.16%)
Diamond Offshore Drilling, Inc. .................. 8,000 385,000
Global Marine Inc. (a) ........................... 20,700 507,150
SEACOR SMIT Inc. (a) ............................. 17,000 1,024,250
PAPER & ALLIED PRODUCTS (1.10%)
Republic Group, Inc. ............................. 40,600 664,825
PETROLEUM REFINING (1.04%)
Sun Company, Inc. ................................ 15,000 630,937
PETROLEUM & PETROLEUM PRODUCTS (0.77%)
Pennzoil Company ................................. 7,000 467,687
PHARMACEUTICALS (0.65%)
Perrigo Company (a) .............................. 29,300 391,887
PRIMARY METAL INDUSTRIES (1.65%)
USX-U.S. Steel Group, Inc. ....................... 32,000 1,000,000
RADIO, TELEVISION, & COMPUTER STORES (1.51%)
Inacom Corp. (a) ................................. 32,500 912,030
RETAIL TRADE (2.73%)
OfficeMax, Inc. (a) .............................. 39,000 555,750
Toys "R" Us, Inc. (a) ............................ 35,000 1,100,312
STONE, CLAY & GLASS PRODUCTS (2.04%)
Southdown, Inc. .................................. 21,000 1,239,000
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (0.85%)
WorldCom, Inc. (a) ............................... 17,000 $ 514,250
TEXTILE MILL PRODUCTS (2.12%)
Mohawk Industries, Inc. (a) ...................... 58,500 1,283,343
TRANSPORTATION EQUIPMENT (0.42%)
Brunswick Corporation ............................ 8,300 251,593
TRUCKING & WAREHOUSING (3.73%)
USFreightways Corporation ........................ 34,000 1,105,000
Yellow Corporation (a) ........................... 46,000 1,155,750
WATER TRANSPORTATION (2.95%)
Tidewater, Inc. .................................. 17,000 937,124
Trico Marine Services, Inc. (a) .................. 29,000 851,874
------------
Total Common Stocks
(cost: $ 57,554,473)....................................... 56,966,227
------------
Total Investment Securities
(cost: $ 57,554,473)....................................... $ 56,966,227
============
SUMMARY
Investments at market value ...................... 94.01% $ 56,966,227
Other Assets in
Excess of Liabilities ........................ 5.99% 3,629,662
------ ------------
Net Assets ....................................... 100.00% $ 60,595,889
====== ============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
65
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO (b)
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (26.75%)
U.S. Treasury Notes
9.25%, due 08/15/98 ......... $ 150,000 $ 153,281
U.S. Treasury Notes
6.63%, due 06/30/01 ......... 1,435,000 1,474,232
U.S. Treasury Notes
5.88%, due 02/15/04 ......... 730,000 736,388
U.S. Treasury Notes
7.25%, due 08/15/04 ......... 520,000 562,058
U.S. Treasury Notes
6.63%, due 05/15/07 ......... 450,000 476,226
---------
Total U.S. Government Obligations
(cost: $ 3,323,040).......................... 3,402,185
---------
ASSET-BACKED SECURITIES (0.53%)
General Motors Acceptance
Corporation
6.75%, due 03/15/03 ......... 66,000 67,238
---------
Total Asset-Backed Securities
(cost: $ 64,614)............................. 67,238
---------
CORPORATE DEBT SECURITIES (4.26%)
BUSINESS CREDIT INSTITUTIONS (1.23%)
Commercial Credit Company
6.13%, due 12/01/05 ......... 160,000 157,000
COMMERCIAL BANKS (0.53%)
NationsBank Corporation
7.00%, due 05/15/03 ......... 65,000 66,869
ELECTRIC SERVICES (2.50%)
Pacific Gas & Electric
7.88%, due 03/01/02 ......... 300,000 318,000
---------
Total Corporate Debt Securities
(cost: $ 532,260)............................ 541,869
---------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
PREFERRED STOCKS (1.79%)
COMPUTER & DATA PROCESSING SERVICES (1.79%)
SAP AG - Vorzug .............................. 695 $ 227,416
---------
Total Preferred Stocks
(cost: $ 106,185)..................................... 227,416
---------
COMMON STOCKS (61.63%)
AEROSPACE (0.39%)
Mitsubishi Heavy Industries Ltd. ............. 12,000 $ 50,100
APPAREL & ACCESSORY STORES (0.41%)
Claire's Stores, Inc. ........................ 2,700 52,481
AUTO REPAIR, SERVICES & PARKING (0.43%)
Rollins Truck Leasing Corporation............. 1,700 30,388
Ryder System, Inc. ........................... 750 24,563
AUTOMOTIVE (2.10%)
Bayerische Motoren Werke AG .................. 105 78,523
Honda Motor Company, Ltd. .................... 2,800 102,931
Toyota Motor Corporation ..................... 3,000 86,108
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.46%)
AutoZone Inc. (a) ............................ 2,000 58,000
BUSINESS SERVICES (0.90%)
Orix Corp. ................................... 900 62,855
Secom Co. Ltd. ............................... 800 51,205
CHEMICALS & ALLIED PRODUCTS (1.56%)
Bayer AG ..................................... 1,980 73,981
Daicel Chemical Industries, Ltd. ............. 17,000 22,180
Hoechst AG ................................... 2,260 79,166
Mitsubishi Chemical Corp. .................... 16,000 22,962
COMMERCIAL BANKS (2.51%)
Den Danske Bank .............................. 1,050 139,937
MBNA Corporation ............................. 2,250 61,453
Mediobanca SpA ............................... 8,500 66,907
Sanwa Bank Ltd. .............................. 2,500 25,326
Sumitomo Bank, Limited ....................... 2,200 25,157
COMMUNICATIONS EQUIPMENT (3.07%)
ADC Telecommunications,
Inc. (a) ................................. 1,800 75,150
Allen Telecom, Inc. (a) ...................... 3,400 62,688
Andrew Corporation (a) ....................... 2,600 62,400
Bay Networks, Inc. (a) ....................... 1,530 39,111
Lucent Technologies, Inc. .................... 1,000 79,875
Northern Telecom Limited ..................... 800 71,200
COMPUTER & DATA PROCESSING SERVICES (0.50%)
Teradyne, Inc. (a) ........................... 2,000 64,000
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
66
</TABLE>
W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO (b)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (1.74%)
3Com Corporation (a) ................................................... 2,100 $ 73,369
Cabletron Systems, Inc. (a) ............................................ 2,000 30,000
Cisco Systems, Inc. (a) ................................................ 2,115 117,911
CONSTRUCTION (0.21%)
Daiwa House Industry Co., Ltd. ......................................... 5,000 26,477
DEPARTMENT STORES (0.10%)
Takashimaya Company, Limited ........................................... 2,000 12,126
ELECTRICAL GOODS (0.45%)
Motorola, Inc. ......................................................... 1,000 57,063
ELECTRONIC COMPONENTS & ACCESSORIES (0.94%)
Fujitsu Ltd. ........................................................... 6,000 64,467
Novellus Systems, Inc. (a) ............................................. 1,700 54,931
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.93%)
Canon, Inc. ............................................................ 3,000 69,992
NEC Corporation ........................................................ 8,200 87,475
Sharp Corporation ...................................................... 5,000 34,459
Sony Corporation ....................................................... 600 53,415
FABRICATED METAL PRODUCTS (0.38%)
Mitsubishi Materials Corporation ....................................... 18,000 29,010
NSK Limited ............................................................ 8,000 19,954
FOOD & KINDRED PRODUCTS (0.59%)
RJR Nabisco Holdings Corp. ............................................. 2,000 75,000
HOLDING & OTHER INVESTMENT OFFICES (0.55%)
Marubeni Corporation ................................................... 25,000 43,937
Nikko Securities Company Ltd. .......................................... 10,000 26,554
INDUSTRIAL MACHINERY & EQUIPMENT (0.45%)
Applied Materials, Inc. (a) ............................................ 1,900 57,238
INSTRUMENTS & RELATED PRODUCTS (0.49%)
KLA-Tencor Corporation (a) ............................................. 1,600 61,800
INSURANCE (4.59%)
Alleanza Assicurazioni ................................................. 7,000 70,131
Allstate Corporation ................................................... 700 63,612
A/S Forsikrings selskabet Codan ........................................ 400 56,345
Chubb Corporation ...................................................... 800 60,500
CNA Financial Corporation (a) .......................................... 500 63,875
Dai-Tokyo Fire & Marine
Insurance Co. (a) .................................................. 12,000 41,258
General Re Corporation ................................................. 300 63,600
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Ohio Casualty Corporation .............................................. 1,200 $ 53,550
St. Paul Companies, Inc. ............................................... 720 59,085
USF&G Corporation ...................................................... 2,340 51,626
MACHINERY, EQUIPMENT & SUPPLIES (0.68%)
Daikin Industries Ltd. ................................................. 7,000 26,431
Mannesmann AG .......................................................... 120 60,651
MANUFACTURING INDUSTRIES (1.11%)
Bulgari SpA ............................................................ 18,400 93,602
Cheminova Holding A/S -
Class B ............................................................ 2,000 47,003
MEDICAL INSTRUMENTS & SUPPLIES (0.89%)
Coloplast A/S - Class B ................................................ 1,470 113,727
METAL MINING (5.20%)
Barrick Gold Corporation ............................................... 10,600 197,425
Battle Mountain Gold Company ........................................... 16,400 96,350
Homestake Mining Company ............................................... 7,100 63,012
Newmont Mining Corporation ............................................. 4,100 120,437
Placer Dome, Inc. ...................................................... 14,500 183,969
MORTGAGE BANKERS AND BROKERS (0.62%)
ContiFinancial Corporation (a) ......................................... 1,500 37,781
Green Tree Financial Corporation........................................ 1,550 40,591
MOTION PICTURES (0.95%)
Time Warner, Inc. ...................................................... 1,000 62,000
Walt Disney Company .................................................... 600 59,438
OIL & GAS EXTRACTION (1.10%)
ENI SpA ................................................................ 24,500 139,893
PERSONAL CREDIT INSTITUTIONS (1.58%)
Beneficial Corporation ................................................. 750 62,344
Capital One Financial Corp. ............................................ 1,500 81,281
Household International, Inc. .......................................... 450 57,403
PHARMACEUTICALS (8.49%)
Amgen, Inc. (a) ........................................................ 2,000 108,250
Centocor, Inc. (a) ..................................................... 1,000 33,250
Chiron Corporation (a) ................................................. 3,000 51,000
Eli Lilly and Company .................................................. 1,900 132,287
Genzyme Corporation (a) ................................................ 2,000 55,500
Merck & Co., Inc. ...................................................... 1,300 138,125
Novo Nordisk A/S - Class B ............................................. 1,600 228,885
Pfizer, Inc. ........................................................... 1,800 134,212
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
67
<PAGE>
WRL SERIES FUND, INC.
GLOBAL SECTOR PORTFOLIO (b)
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Sankyo Company, Ltd. .................................................... 3,000 $ 67,920
Schering-Plough Corporation ............................................. 2,100 130,462
PRIMARY METAL INDUSTRIES (1.22%)
Degussa AG .............................................................. 1,200 60,050
Kawasaki Steel Corporation .............................................. 31,000 42,348
Nippon Steel Corporation ................................................ 36,000 53,323
PUBLIC ADMINISTRATION (0.54%)
VEBA AG ................................................................. 1,000 68,112
RADIO & TELEVISION BROADCASTING (0.57%)
Viacom, Inc. - Class B (a) .............................................. 1,750 72,516
REAL ESTATE (0.41%)
Mitsui Fudosan Co., Ltd. ................................................ 5,400 52,218
RESEARCH & TESTING SERVICES (0.45%)
Millennium Pharmaceuticals,
Inc. (a) ............................................................ 3,000 57,000
RESTAURANTS (3.36%)
Applebee's International, Inc. .......................................... 1,400 25,288
Cracker Barrel Old Country
Store, Inc. ......................................................... 4,740 158,198
Lone Star Steakhouse &
Saloon, Inc. (a) .................................................... 2,950 51,625
McDonald's Corporation .................................................. 2,370 113,168
Outback Steakhouse, Inc. (a) ............................................ 1,500 43,125
Wendy's International, Inc. ............................................. 1,500 36,094
RETAIL TRADE (0.97%)
Toys "R" Us, Inc. (a) ................................................... 1,700 53,444
Viking Office Products, Inc. (a) ........................................ 3,200 69,800
RUBBER & MISC. PLASTIC PRODUCTS (0.79%)
Adidas AG ............................................................... 760 99,981
SOCIAL SERVICES (0.36%)
Falck A/S ............................................................... 1,000 46,346
TELECOMMUNICATIONS (4.58%)
Ameritech Corporation ................................................... 1,100 88,550
BellSouth Corporation ................................................... 1,500 84,469
GTE Corporation ......................................................... 1,600 83,600
Nippon Telegraph & Telephone
Corp. ............................................................... 6 51,573
Telecom Italia Mobile SpA ............................................... 42,000 193,762
U S West Communications
Group ............................................................... 1,800 81,225
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TEXTILE MILL PRODUCTS (0.25%)
Toray Industries, Inc. .................................................. 7,000 $ 31,427
TOBACCO PRODUCTS (1.14%)
Philip Morris Companies, Inc. ........................................... 1,500 67,969
UST, Inc. ............................................................... 2,100 77,569
TRANSPORTATION EQUIPMENT (0.29%)
Nissan Motor Company, Ltd. .............................................. 9,000 37,299
TRUCKING & WAREHOUSING (0.98%)
Caliber System, Inc. .................................................... 800 38,950
Nippon Express Co., Ltd. ................................................ 7,000 34,919
USFreightways Corporation ............................................... 850 27,625
Werner Enterprises, Inc. ................................................ 1,150 23,575
WHOLESALE TRADE DURABLE GOODS (0.35%)
Canon Sales Co., Inc. ................................................... 2,200 25,157
Itochu Corporation ...................................................... 12,000 18,879
------------
Total Common Stocks
(cost: $ 8,153,763).............................................................. 7,839,820
------------
Total Investment Securities
(cost: $ 12,179,862)............................................................. $ 12,078,528
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SUMMARY
Investments at market value ............................................ 94.96% $ 12,078,528
Other Assets in
Excess of Liabilities ............................................... 5.04% 642,232
------ ------------
Net Assets ............................................................. 100.00% $ 12,720,760
====== ============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO NET ASSETS.
MARKET VALUE PERCENTAGE
-------------- -----------
Denmark ............... $ 632,244 4.97%
Germany ............... 747,881 5.88%
Italy ................. 564,294 4.44%
Japan ................. 1,399,447 11.00%
United States ......... 9,376,894 73.71%
------------ ------
Net Assets ........... $ 12,720,760 100.00%
============ ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Prior to March 1, 1997, this portfolio was named Meridian/
INVESCO Global Sector.
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.
VALUE EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
PREFERRED STOCKS (B)
MEDICAL INSTRUMENTS & SUPPLIES (B)
Fresenuis National Medical
Care (a) ................................. 4,500 $ 315
-----------
Total Preferred Stocks
(cost: $ 624)........................................... 315
-----------
COMMON STOCKS (89.46%)
AEROSPACE (4.36%)
Boeing Company ............................... 91,200 4,463,100
Sundstrand Corporation ....................... 61,550 3,100,581
AIR TRANSPORTATION (3.38%)
AMR Corporation (a) .......................... 11,000 1,413,500
Delta Air Lines, Inc. ........................ 37,500 4,462,500
AUTOMOTIVE (1.17%)
General Motors Corporation ................... 33,500 2,030,938
CHEMICALS & ALLIED PRODUCTS (7.99%)
Air Products and Chemicals, Inc............... 15,800 1,299,550
E. I. du Pont de Nemours and
Company .................................. 22,400 1,345,400
IMC Global, Inc. ............................. 55,700 1,824,175
Morton International, Inc. ................... 72,000 2,475,000
Praxair, Inc. ................................ 65,000 2,925,000
W.R. Grace & Company ......................... 49,500 3,981,656
COMMERCIAL BANKS (11.42%)
Bank of New York Company, Inc................. 60,500 3,497,656
Chase Manhattan Corporation .................. 34,400 3,766,800
First Union Corporation ...................... 98,800 5,063,500
Fleet Financial Group, Inc. .................. 3,000 224,813
National City Corporation .................... 46,600 3,063,950
Norwest Corporation .......................... 108,400 4,186,950
COMMUNICATION (2.34%)
U S West Communications
Group .................................... 140,600 4,059,825
CONSTRUCTION (0.18%)
Foster Wheeler Corporation ................... 11,800 319,338
DEPARTMENT STORES (2.09%)
Federated Department Stores,
Inc. (a) ................................. 84,000 3,617,250
ELECTRONIC COMPONENTS & ACCESSORIES (1.88%)
Texas Instruments, Inc. ...................... 72,600 3,267,000
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.64%)
Emerson Electric Company ..................... 61,600 $ 3,476,550
Maytag Corporation ........................... 15,000 559,688
Thomas & Betts Corporation ................... 48,300 2,282,175
ENGINEERING & MANAGEMENT SERVICES (0.87%)
Halliburton Company .......................... 29,000 1,506,188
FABRICATED METAL PRODUCTS (1.21%)
Cooper Industries, Inc. ...................... 42,700 2,092,300
FORESTRY (0.16%)
Weyerhaeuser Company ......................... 5,600 274,750
HEALTH SERVICES (1.35%)
Columbia/HCA Healthcare
Corporation .............................. 78,900 2,337,413
INDUSTRIAL MACHINERY & EQUIPMENT (10.31%)
Case Corporation ............................. 36,000 2,175,750
Caterpillar Inc. ............................. 86,000 4,176,375
Deere & Company .............................. 81,450 4,749,553
Flowserve Corporation ........................ 6,968 194,669
Harnischfeger Industries, Inc. ............... 32,000 1,130,000
Ingersoll-Rand Company ....................... 46,500 1,883,250
Kennametal, Inc. ............................. 12,300 637,294
United Technologies Corporation............... 28,200 2,053,313
York International Corporation ............... 22,300 882,244
INSTRUMENTS & RELATED PRODUCTS (0.77%)
Xerox Corporation ............................ 18,000 1,328,625
INSURANCE (12.16%)
Aetna Inc. ................................... 45,500 3,210,594
Allstate Corporation ......................... 46,400 4,216,600
American International Group,
Inc. ..................................... 20,300 2,207,625
Hartford Financial Services
Group, Inc. .............................. 24,000 2,245,500
Loews Corporation ............................ 54,000 5,730,750
Travelers Property Casualty Corp.............. 79,000 3,476,000
MACHINERY, EQUIPMENT & SUPPLIES (2.05%)
W.W. Grainger, Inc. .......................... 36,500 3,547,344
MOTION PICTURES (2.18%)
Time Warner, Inc. ............................ 61,000 3,782,000
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
69
<PAGE>
WRL SERIES FUND, INC.
VALUE EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MOTOR VEHICLES, PARTS & SUPPLIES (0.43%)
Exide Corporation ........................... 28,500 $ 737,438
OIL & GAS EXTRACTION (9.28%)
Dresser Industries, Inc. .................... 74,200 3,111,763
Noble Affiliates, Inc. ...................... 32,500 1,145,625
Noble Drilling Corporation (a) .............. 57,600 1,764,000
Reading & Bates Corporation (a).............. 51,100 2,139,813
Santa Fe International
Corporation ............................. 52,200 2,123,888
Transocean Offshore, Inc. ................... 78,800 3,797,175
United Meridian Corporation (a).............. 71,500 2,010,938
PAPER & ALLIED PRODUCTS (0.63%)
Champion International
Corporation ............................. 24,300 1,101,092
PERSONAL CREDIT INSTITUTIONS (0.56%)
Household International, Inc. ............... 7,650 975,851
PETROLEUM REFINING (0.97%)
Coastal Corporation ......................... 27,300 1,690,892
PRIMARY METAL INDUSTRIES (2.80%)
Alumax Inc. (a) ............................. 74,600 2,536,400
Reynolds Metals Company ..................... 7,900 474,000
USX-US Steel Group, Inc. .................... 59,000 1,843,750
RAILROADS (1.03%)
Burlington Northern Santa Fe ................ 19,200 1,784,400
SECURITY & COMMODITY BROKERS (0.76%)
Bear Stearns Companies, Inc. ................ 27,750 1,318,124
TRANSPORTATION EQUIPMENT (0.30%)
Halter Marine Group, Inc. (a) ............... 4,593 132,622
Trinity Industries, Inc. .................... 8,800 392,700
WATER TRANSPORTATION (1.17%)
Tidewater, Inc. ............................. 36,900 2,034,113
WHOLESALE TRADE NONDURABLE GOODS (2.02%)
Unilever NV - NY Shares -ADR ................ 56,000 3,496,500
-------------
Total Common Stocks
(cost: $ 132,553,394)..................................... 155,156,116
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (4.01%)
U. S. Treasury Bill
5.15%, due 02/19/98 ..................... $ 7,000,000 $ 6,950,908
-------------
Total Short-Term U.S. Government Obligations
(cost: $ 6,950,908)........................................ 6,950,908
-------------
SHORT-TERM OBLIGATION (6.79%)
Investors Bank & Trust Company (c)
5.90%, Repurchase
Agreement dated 12/31/97
to be repurchased at
$ 11,778,025 on 01/02/98................. 11,774,166 11,774,166
-------------
Total Short-Term Obligation
(cost: $ 11,774,166)....................................... 11,774,166
-------------
Total Investment Securities
(cost: $ 151,279,092)...................................... $ 173,881,505
=============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SUMMARY
Investments at market value ............................................ 100.26% $ 173,881,505
Other Liabilities in
Excess of Assets ...................................................... ( 0.26%) (446,049)
------- -------------
Net Assets ............................................................. 100.00% $173,435,456
======= =============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Percentage is less than .01%.
(c) Collateralized by $ 4,980,000 Federal Home Loan Mortgage Corporation London
Interbank Offered Rate Floater-Series 1499-Class FD 7.13% due 04/15/23;
$ 10,015,000 Federal National Mortgage Association ARM 7.00% due
09/01/26; market value and accrued interest aggregated $ 3,925,047 and
$ 8,439,146, respectively, for the collateral at December 31, 1997.
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
W R L S e r i e s F u n d , I n c .
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<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
--------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<S> <C> <C>
CONVERTIBLE BONDS (0.12%)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.12%)
Sony Corporation
1.40%, due 03/31/05 ...................... $ 2,000,000 $ 22,794
--------
Total Convertible Bonds
(cost: $22,235).............................................. 22,794
--------
NUMBER OF MARKET
SHARES VALUE
----------- --------
CONVERTIBLE PREFERRED STOCKS (0.02%)
COMMERCIAL BANKS (0.02%)
Banco Comercial Portugues, SA ................ 65 $ 4,796
--------
Total Convertible Preferred Stocks
(cost: $4,412)............................................... 4,796
--------
PREFERRED STOCKS (0.68%)
MEDICAL INSTRUMENTS & SUPPLIES (0.14%)
Fresenius Medical Care AG (a) ................ 518 27,938
TELECOMMUNICATIONS (0.54%)
Telecomunicacoes de Sao
Paulo S/A ................................ 399,151 106,222
--------
Total Preferred Stocks
(cost: $157,197)............................................. 134,160
--------
COMMON STOCKS (91.79%)
AEROSPACE (0.42%)
British Aerospace Plc ........................ 2,944 83,963
AGRICULTURE (0.07%)
Malakoff Berhad .............................. 7,000 14,621
AIR TRANSPORTATION (0.05%)
Hong Kong Aircraft Engineering
Company Ltd. ............................. 1,500 3,775
Singapore Airlines Ltd. ...................... 1,000 6,548
AMUSEMENT & RECREATION SERVICES (2.36%)
Airtours Plc ................................. 10,290 209,742
Granada Group Plc ............................ 14,899 227,766
NAMCO Ltd. ................................... 1,000 29,087
APPAREL PRODUCTS (0.12%)
Giordano International, Limited .............. 66,000 22,788
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
AUTOMOTIVE (2.88%)
GKN Plc ...................................... 1,550 $ 31,772
Honda Motor Company, Ltd. .................... 8,000 294,091
Mitsubishi Motors
Corporation (a) .......................... 3,000 23,715
Nissan Motor Company, Ltd. ................... 8,000 33,154
Qingling Motors Company ...................... 20,000 9,810
Renault SA (a) ............................... 3,022 85,002
Volkswagen AG ................................ 164 92,281
BEER, WINE, & DISTILLED BEVERAGES (0.69%)
Guinness Plc ................................. 10,700 97,969
Sapporo Breweries, Ltd. ...................... 12,000 37,759
BEVERAGES (0.86%)
Coca-Cola Amatil, Ltd. ....................... 10,600 79,232
Panamerican Beverages, Inc. -
Class A .................................. 2,784 90,828
BUSINESS SERVICES (0.34%)
Hutchison Whampoa Limited .................... 2,000 12,546
Nichiei ...................................... 300 32,003
SEMA Group Plc ............................... 919 22,358
CHEMICALS & ALLIED PRODUCTS (1.74%)
BASF AG ...................................... 740 26,230
Croda International Plc ...................... 4,900 33,870
ICI Australia Limited ........................ 1,770 12,404
Johnson Matthey Plc .......................... 830 7,436
Rhone-Poulenc - Class A ...................... 1,100 49,271
SGL Carbon AG ................................ 1,071 138,155
Shin-Etsu Chemical Co., Ltd. ................. 4,000 76,439
COMMERCIAL BANKS (13.32%)
ABN Amro Holding N.V. ........................ 3,965 77,266
Alpha Credit Bank ............................ 580 33,853
Australia & New Zealand Banking
Group Ltd. ............................... 3,495 23,103
Banco Bilbao Vizcaya, S.A. ................... 3,500 113,029
Banco Comercial Portugues, SA ................ 4,849 99,204
Banco Comercial Portugues, SA -
Sponsored ADR ............................ 1,909 38,657
Banco Santander .............................. 2,952 98,426
Bank of Scotland ............................. 7,647 69,513
Barclays Plc ................................. 2,400 63,942
Bayerische Vereinsbank AG .................... 1,948 127,484
BHW Holding AG (a) ........................... 8,250 135,321
Commerzbank AG - new (a) ..................... 213 8,385
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
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<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
Commerzbank AG .......................................................... 2,984 $ 117,469
Credito Italiano ........................................................ 36,259 112,146
Dao Heng Bank Group Ltd. ................................................ 5,000 12,488
Den Danske Bank ......................................................... 1,183 157,662
Development Bank of Singapore
Limited ............................................................. 1,000 8,571
Generale de Banque SA ................................................... 296 128,909
Grupo Financiero Bancomer -
Sponsored ADR (a) (b) ............................................... 3,991 51,881
HSBC Holdings Plc ....................................................... 3,500 86,286
Industrial Bank of Japan ................................................ 5,000 35,687
ING Groep N.V. .......................................................... 6,449 271,704
Investor AB - Class B ................................................... 373 18,187
Istituto Bancario San Paolo
di Torino ........................................................... 6,458 62,018
Lloyds TSB Group Plc .................................................... 6,117 79,643
Merita Ltd. - Class A ................................................... 22,708 124,233
Metropolitan Bank &
Trust Company ....................................................... 5,520 37,605
National Australia Bank, Ltd. ........................................... 1,100 15,367
National Westminster Bank Plc ........................................... 3,260 54,552
Sanwa Bank, Ltd. ........................................................ 7,000 70,913
Sumitomo Bank, Ltd. ..................................................... 5,000 57,176
Uniao de Bancos Brasileiros S.A. -
Sponsored GDR (a) ................................................... 4,842 155,852
Union Bank of Switzerland -
Class B ............................................................. 63 91,097
COMMUNICATION (1.25%)
Cordiant Communications
Group Plc ........................................................... 8,847 15,997
EMI Group Plc ........................................................... 3,013 25,158
Reed International Plc .................................................. 18,179 173,319
Reuters Holdings Plc .................................................... 1,600 17,490
Saatchi & Saatchi Plc (a) ............................................... 8,847 15,852
COMMUNICATIONS EQUIPMENT (1.72%)
ECI Telecommunications Ltd. ............................................. 4,917 125,384
NTT Data Corporation .................................................... 40 215,810
COMPUTER & DATA PROCESSING SERVICES (1.56%)
Baan Company, N.V. (a) .................................................. 2,790 91,394
Cap Gemini SA ........................................................... 1,659 136,022
Dimension Data Holdings
Limited (a) ......................................................... 18,673 80,621
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (0.29%)
Acer Incorporation - GDR (a) ............................................ 1,125 $ 8,609
Comverse Technology, Inc. (a) ........................................... 1,252 48,672
CONSTRUCTION (0.97%)
Cheung Kong Infrastructure
Holdings ............................................................ 6,000 16,960
Hi Cement Corporation ................................................... 20,000 1,525
Suez Lyonnaise des Eaux ................................................. 1,215 134,439
Toda Corporation ........................................................ 14,000 38,143
DEPARTMENT STORES (0.62%)
Credit Saison Co., Ltd. ................................................. 5,000 123,561
ELECTRIC SERVICES (2.68%)
BSES Ltd. - GDR Registered
Shares (a) .......................................................... 682 11,935
China Light & Power Company
Ltd. ................................................................ 3,000 16,651
Energie-Versorgung
Niederoesterreich AG ................................................ 593 77,946
Hongkong Electric Holdings Ltd. ......................................... 5,000 19,006
National Grid Group Plc ................................................. 4,400 20,903
National Power Plc ...................................................... 9,500 93,540
Severn Trent Plc ........................................................ 4,222 67,874
Siemens AG .............................................................. 2,136 126,485
Sumitomo Electric Industries ............................................ 5,000 68,304
Tohoku Electric Power
Company, Inc. ....................................................... 1,000 15,196
VEBA AG ................................................................. 210 14,304
ELECTRONIC COMPONENTS & ACCESSORIES (0.66%)
Elec & Eltek International
Company Ltd. ........................................................ 300 1,374
Electrocomponents Plc ................................................... 12,259 91,286
Fairey Group Plc ........................................................ 3,000 25,397
General Electric Company Plc ............................................ 1,800 11,673
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.64%)
Canon, Inc. ............................................................. 8,000 186,646
Electrolux AB - Series B ................................................ 323 22,423
Hitachi Ltd. ............................................................ 5,000 35,687
Hitachi Maxell .......................................................... 4,000 70,606
Matsushita Electric Industrial
Company, Ltd. ....................................................... 6,000 87,951
Mitsumi Electric Company, Ltd. .......................................... 2,000 28,550
Murata Manufacturing Co., Ltd. .......................................... 1,000 25,403
</TABLE>
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
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (CONTINUED)
Nintendo Company Ltd. ................................................. 400 $39,601
Nitto Denko Corp. ..................................................... 2,000 34,536
Philips Electronics N.V. .............................................. 1,446 86,746
Sony Corporation ...................................................... 3,200 284,881
Uniden Corporation .................................................... 2,000 16,117
ENGINEERING & MANAGEMENT SERVICES (3.75%)
ABB AG (a) ............................................................ 191 239,960
Autoliv, Inc. ......................................................... 4,476 145,781
Hoganas AB - Class B .................................................. 3,030 92,768
Howard Smith, Limited ................................................. 2,390 19,849
LucasVarity Plc ....................................................... 38,677 136,691
VA Technologie AG ..................................................... 704 106,918
ENVIRONMENTAL SERVICES (0.94%)
Compagnie Generale des Eaux ........................................... 1,329 185,473
FOOD STORES (2.23%)
Carrefour SA .......................................................... 258 134,594
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar - Sponsored GDR ............................................ 3,675 71,203
Nestle SA ............................................................. 81 121,395
Safeway Plc ........................................................... 9,000 50,744
Tesco Plc ............................................................. 7,875 64,077
FOOD & KINDRED PRODUCTS (1.24%)
Burns, Philp & Company, Ltd. .......................................... 7,636 1,195
Cultor Oy ............................................................. 1,664 90,425
Devro Plc ............................................................. 7,882 48,846
Gruma S.A. - Class B (a) .............................................. 7,297 28,957
Nippon Meat Packers, Inc. ............................................. 4,000 54,643
San Miguel Corporation - Class B....................................... 17,000 21,038
FURNITURE & HOME FURNISHINGS (0.09%)
Industrie Natuzzi Spa -
Sponsored ADR ..................................................... 878 18,109
GAS PRODUCTION & DISTRIBUTION (0.77%)
BG Plc ................................................................ 13,755 61,953
Hong Kong and China Gas
Company Ltd. ...................................................... 12,000 23,233
Osaka Gas Co. ......................................................... 29,000 66,324
HOLDING & OTHER INVESTMENT OFFICES (1.75%)
Citic Pacific Ltd. .................................................... 5,000 19,877
Compagnie Financiere de Paribas........................................ 1,400 121,648
Cosco Pacific Ltd. .................................................... 15,000 12,197
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
HOLDING & OTHER INVESTMENT OFFICES (CONTINUED)
Grupo Carso SA de CV -
Sponsored ADR ..................................................... 4,033 $53,727
Guangdong Investment Ltd. (a) ......................................... 28,000 18,612
IS Himalayan Fund N.V. (a) ............................................ 1,000 10,700
Kinnevik AB - Class B ................................................. 624 10,339
Montedison S.p.A. ..................................................... 111,728 100,158
HOTELS & OTHER LODGING PLACES (C )
Lai Sun Hotels International
Ltd-warrants ...................................................... 122 1
INDUSTRIAL MACHINERY & EQUIPMENT (3.19%)
Blue Circle Industries Plc ............................................ 4,595 25,794
Coflexip SA - Sponsored ADR ........................................... 2,262 125,541
Hitachi Construction Machinery
Co., Ltd. ......................................................... 4,000 12,617
Holderbank Financiere Glarus
AG - Class B ...................................................... 69 56,311
Sandvik AB - Class B .................................................. 3,550 101,532
Siebe Plc ............................................................. 13,692 268,958
Sumitomo Metal Industries ............................................. 2,000 39,754
INSURANCE (1.56%)
Commercial Union Plc .................................................. 4,895 68,314
General Accident Plc .................................................. 1,600 28,799
Legal & General Group Plc ............................................. 2,000 17,687
Royal & Sun Alliance Insurance
Group Plc ......................................................... 9,703 97,772
Schweizerische
Rueckversicherungs-
Gesellschaft ...................................................... 51 95,394
INSURANCE AGENTS, BROKERS & SERVICE (3.03%)
Axa-UAP ............................................................... 3,554 274,979
Pohjola Insurance Group -
Class B ........................................................... 489 18,134
Sampo Insurance Company Ltd. -
Class A ........................................................... 1,109 36,648
Zurich Versicherungs-Gesellschaft...................................... 565 269,232
IRON & STEEL FOUNDRIES (0.70%)
Usinor Sacilor SA ..................................................... 9,638 139,150
LIFE INSURANCE (0.45%)
Prudential Corporation Plc ............................................ 7,250 88,356
MACHINERY, EQUIPMENT & SUPPLIES (3.16%)
Mannesmann AG ......................................................... 688 347,730
Minebea Company Ltd. .................................................. 2,000 21,489
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
73
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MACHINERY, EQUIPMENT & SUPPLIES (CONTINUED)
Schneider SA .......................................................... 4,540 $ 246,498
SMC Corporation ....................................................... 100 8,826
MANUFACTURING INDUSTRIES (0.89%)
Barlow Limited ........................................................ 4,176 35,458
Johnson Electric Holdings, Ltd. (a).................................... 13,500 38,858
Oerlikon-Buehrle Holding AG ........................................... 730 102,458
MEDICAL INSTRUMENTS & SUPPLIES (1.05%)
BOC Group Plc ......................................................... 750 12,526
Fresenius Medical Care AG (a) ......................................... 2,947 195,811
MINING (0.42%)
Billiton Plc (a) ...................................................... 20,773 53,269
Broken Hill Proprietary
Company, Ltd. ..................................................... 1,250 11,612
WMC Limited ........................................................... 5,330 18,589
MOTOR VEHICLES, PARTS & SUPPLIES (1.45%)
Daimler-Benz AG ....................................................... 1,723 120,902
PT Astra International ................................................ 30,500 8,124
Valeo SA .............................................................. 2,340 158,695
OIL & GAS EXTRACTION (4.76%)
Elf Aquitaine SA ...................................................... 750 87,224
ENI SPA ............................................................... 2,876 16,422
OMV AG ................................................................ 403 55,844
Petronas Gas Berhad (a) ............................................... 6,000 13,693
Repsol S.A. ........................................................... 4,800 204,376
Saipem S.p.A. ......................................................... 14,623 76,958
Shell Transport & Trading
Company ........................................................... 16,294 114,368
Total SA - Class B .................................................... 3,301 359,222
Woodside Petroleum Limited ............................................ 2,100 14,812
PERSONAL SERVICES (0.37%)
Hays Plc .............................................................. 5,514 73,466
PETROLEUM & COAL PRODUCTS (0.55%)
Nippon Oil Co. ........................................................ 6,000 15,518
Perez Companc S.A. .................................................... 13,042 93,139
PHARMACEUTICALS (4.59%)
Fujisawa Pharmaceutical Co., Ltd....................................... 4,000 34,996
Glaxo Wellcome Plc .................................................... 3,530 84,224
Medeva Plc ............................................................ 10,361 27,591
Novartis AG ........................................................... 237 384,561
Roche Holding AG ...................................................... 20 198,617
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Teva Pharmaceutical Industries
Ltd. - Sponsored ADR .............................................. 1,655 $ 78,302
Zeneca Group Plc ...................................................... 2,815 99,790
PRIMARY METAL INDUSTRIES (0.90%)
Iscor Limited ......................................................... 23,096 6,838
Nippon Steel Corporation .............................................. 7,000 10,368
Sumitomo Metal Industries ............................................. 7,000 8,972
Sumitomo Sitix Corporation ............................................ 4,000 42,671
Tubos de Acero de Mexico SA -
Sponsored ADR (a) ................................................. 5,100 110,288
PRINTING & PUBLISHING (1.55%)
Elsevier NV ........................................................... 8,273 133,870
Singapore Press Holdings Ltd. (a)...................................... 1,000 12,560
Verenigde Nederlandse
Uitgeversbedrijven
Verenigd Bezit .................................................... 5,744 162,090
PUBLIC ADMINISTRATION (0.01%)
Shenzhen Expressway Company
Ltd. (a) .......................................................... 12,000 2,323
RADIO & TELEVISION BROADCASTING (0.59%)
Grupo Televisa S.A. - Sponsored
GDR (a) ........................................................... 3,000 116,063
RAILROADS (1.46%)
East Japan Railway Co. ................................................ 15 67,805
Railtrack Group Plc ................................................... 13,893 220,837
REAL ESTATE (0.91%)
British Land Company Plc .............................................. 8,050 90,114
Cheung Kong Holdings, Ltd. ............................................ 3,000 19,652
DBS Land, Ltd. ........................................................ 5,000 7,679
Mitsui Fudosan Co., Ltd. .............................................. 3,000 29,010
New World Development
Company, Ltd. ..................................................... 1 3
Sumitomo Realty & Development
Co., Ltd. ......................................................... 6,000 34,536
RESIDENTIAL BUILDING CONSTRUCTION (0.29%)
Berkeley Group Plc .................................................... 5,680 58,355
RETAIL TRADE (1.73%)
D.F.S. Furniture Company Plc .......................................... 5,011 42,833
Marks & Spencer Plc ................................................... 7,355 72,420
Marui Co. ............................................................. 5,000 77,897
</TABLE>
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
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL TRADE (CONTINUED)
Mycal Corporation ...................................................... 4,000 $ 33,461
Vendex International N.V. .............................................. 1,632 90,094
Woolworths Limited ..................................................... 7,580 25,349
RESTAURANTS (0.09%)
Compass Group Plc ...................................................... 1,385 17,052
RUBBER & MISC. PLASTIC PRODUCTS (0.64%)
Bridgestone Corp. ...................................................... 2,000 43,438
Compagnie Generale des
Etablissements Michelin -
Class B ............................................................ 1,642 82,659
STONE, CLAY & GLASS PRODUCTS (0.13%)
Asahi Glass Company, Ltd. .............................................. 2,000 9,517
BPB Plc ................................................................ 1,600 8,942
PT Mulia Industrindo ................................................... 57,000 6,658
TELECOMMUNICATIONS (6.91%)
Alcatel Alsthom ........................................................ 295 37,494
British Telecommunications Plc ......................................... 13,827 108,303
Japan Telecom Company
Limited (a) ........................................................ 20 17,652
NetCom Systems AB -
Class B (a) ........................................................ 2,190 47,045
Nippon Telegraph & Telephone
Corp. .............................................................. 4 34,382
Nokia Oyj - Class A .................................................... 1,943 135,907
Telecom Corporation of New
Zealand Limited (a) ................................................ 3,700 17,950
Telecom Italia Mobile
SpA ordinary ....................................................... 38,984 179,848
Telecom Italia Mobile SpA -
Class NC ........................................................... 59,593 168,586
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Telecom Italia SpA ..................................................... 32,900 $ 157,964
Telecomunicacoes Brasileiras S/A -
Sponsored ADR ...................................................... 1,589 185,119
Telecomunicacoes Brasileiras S/A........................................ 360,000 36,613
Telefonica de Espana ................................................... 3,870 110,273
Telefonica del Peru S.A. -
Sponsored ADR ...................................................... 5,340 124,488
Videsh Sanchar Nigam Ltd. -
GDR (a) ............................................................ 500 7,012
TEXTILE MILL PRODUCTS (0.69%)
Adidas AG .............................................................. 828 108,926
Toray Industries, Inc. ................................................. 6,000 26,937
TRANSPORTATION EQUIPMENT (0.06%)
Ishikawajima-Harima Heavy
Industries Co., Ltd. ............................................... 8,000 11,971
TRANSPORTATION & PUBLIC UTILITIES (1.04%)
BAA Plc ................................................................ 5,820 47,642
Brambles Industries, Ltd. .............................................. 7,935 157,512
WATER TRANSPORTATION (0.57%)
IHC Caland N.V. ........................................................ 2,180 113,140
WHOLESALE TRADE DURABLE GOODS (0.05%)
Itochu Corporation ..................................................... 6,000 9,439
------------
Total Common Stocks
(cost: $ 17,984,090).............................................................. 18,171,153
------------
Total Investment Securities
(cost: $ 18,167,934).............................................................. $ 18,332,903
============
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
75
<PAGE>
WRL SERIES FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<S> <C> <C>
SUMMARY
Investments at market value ............................................. 92.61% $ 18,332,903
Other Assets in
Excess of Liabilities ............................................... 7.39% 1,461,864
------ ------------
Net Assets .............................................................. 100.00% $19,794,767
====== ============
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO NET ASSETS.
MARKET
VALUE PERCENTAGE
-------- ------------
Argentina .............................................................. $ 93,139 0.47%
Australia .............................................................. 379,026 1.91%
Austria ................................................................ 240,708 1.22%
Belgium ................................................................ 128,909 0.65%
Brazil ................................................................. 142,835 0.72%
Denmark ................................................................ 157,662 0.80%
Finland ................................................................ 405,347 2.05%
France ................................................................. 2,232,369 11.28%
Germany ................................................................ 1,587,422 8.02%
Greece ................................................................. 33,853 0.17%
Hong Kong .............................................................. 335,067 1.69%
Indonesia .............................................................. 14,783 0.07%
Italy .................................................................. 874,101 4.42%
Japan .................................................................. 2,696,032 13.62%
Malaysia ............................................................... 28,314 0.14%
Mexico ................................................................. 28,957 0.15%
Netherlands ............................................................ 1,026,305 5.18%
New Zealand ............................................................ 17,950 0.09%
Philippines ............................................................ 60,910 0.31%
Portugal ............................................................... 99,204 0.50%
Singapore .............................................................. 35,357 0.18%
South Africa ........................................................... 122,917 0.62%
Spain .................................................................. 526,105 2.66%
Sweden ................................................................. 438,075 2.21%
Switzerland ............................................................ 1,559,024 7.88%
United Kingdom ......................................................... 3,630,737 18.34%
United States .......................................................... 2,899,659 14.65%
------------ ------------
Net Assets ............................................................ $ 19,794,767 100.00%
============ ============
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Securities are registered pursuant to rule 144A and may be deemed to be
restricted for resale.
(c) Industry percentage is less than .01%.
ADR American Depositary Receipt
GDR Global Depositary Receipt
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
76
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
December 31, 1997
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (0.57%)
COMPUTER & DATA PROCESSING SERVICES (0.55%)
Microsoft Corporation .................................................. 2,642 $ 237,450
TELECOMMUNICATIONS (0.02%)
AirTouch Communications, Inc. -
Series B ........................................................... 206 7,339
---------
Total Convertible Preferred Stocks
(cost: $ 240,755)............................................................... 244,789
---------
COMMON STOCKS (87.24%)
AEROSPACE (3.01%)
Allied Signal Inc. (d) ................................................. 17,373 676,461
Boeing Company ......................................................... 1,453 71,106
Lockheed Martin Corporation ............................................ 1,008 99,288
Textron, Inc. .......................................................... 7,141 446,313
AIR TRANSPORTATION (0.53%)
Continental Airlines, Inc. -
Class B (a) ........................................................ 3,655 175,897
Delta Air Lines, Inc. .................................................. 421 50,099
AUTO REPAIR, SERVICES & PARKING (0.04%)
UNOVA, Inc. (a) ........................................................ 928 15,254
AUTOMOTIVE (0.56%)
Echlin Inc. ............................................................ 439 15,886
Ford Motor Company ..................................................... 3,106 151,223
General Motors Corporation ............................................. 552 33,465
ITT Industries, Inc. ................................................... 1,275 40,003
BEVERAGES (1.89%)
Anheuser-Busch Companies,
Inc. (d) ........................................................... 7,309 321,596
Coca-Cola Company ...................................................... 261 17,389
PepsiCo, Inc. (d) ...................................................... 13,026 474,635
BUSINESS SERVICES (2.06%)
Catalina Marketing
Corporation (a) .................................................... 825 38,156
Cendant Corporation (a) ................................................ 2,183 75,041
Equifax, Inc. .......................................................... 13,860 491,164
Interpublic Group of
Companies, Inc. .................................................... 5,056 251,852
Metromedia International
Group, Inc. (a) .................................................... 709 6,736
Viad Corp .............................................................. 1,184 22,866
CHEMICALS & ALLIED PRODUCTS (4.22%)
Air Products and Chemicals, Inc......................................... 1,627 133,821
NUMBER OF MARKET
SHARES VALUE
-------- ----------
COMMON STOCKS (CONTINUED)
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
Airgas, Inc. (a) ....................................................... 3,025 $ 42,350
Avery Dennison Corporation ............................................. 845 37,814
Avon Products, Inc. .................................................... 1,847 113,360
Colgate-Palmolive Company .............................................. 2,171 159,569
E. I. du Pont de Nemours and
Company ............................................................ 10,088 605,911
Gillette Company ....................................................... 500 50,219
IMC Global, Inc. ....................................................... 1,841 60,293
International Flavors &
Fragrances, Inc. ................................................... 533 27,450
Morton International, Inc. ............................................. 4,731 162,628
PPG Industries, Inc. ................................................... 289 16,509
Procter & Gamble Company ............................................... 4,684 373,842
W.R. Grace & Company ................................................... 371 29,842
COMMERCIAL BANKS (4.87%)
AmSouth Bancorporation ................................................. 578 31,393
Bank of New York Company, Inc........................................... 2,506 144,878
BankAmerica Corporation ................................................ 2,088 152,424
BankBoston Corporation ................................................. 2,445 229,677
Barnett Banks, Inc. .................................................... 434 31,194
Chase Manhattan Corporation ............................................ 1,574 172,353
Citicorp ............................................................... 4,497 568,589
Crestar Financial Corporation .......................................... 615 35,055
First Chicago NBD Corporation .......................................... 620 51,770
Fleet Financial Group, Inc. ............................................ 680 50,958
ING Groep N.V. - ADR ................................................... 1,110 46,967
Mellon Bank Corporation ................................................ 1,582 95,909
Norwest Corporation .................................................... 1,157 44,689
State Street Corporation ............................................... 1,891 110,033
Summit Bancorp. ........................................................ 926 49,310
U.S. Bancorp ........................................................... 605 67,722
Wells Fargo & Company .................................................. 619 210,112
COMMUNICATION (1.20%)
Comcast Corporation - Class A .......................................... 4,547 143,515
Comcast UK Cable Partners
Limited - Class A (a) .............................................. 1,500 14,156
NTL Incorporated (a) ................................................... 6,608 184,198
Tele-Communications TCI
Ventures Group - Class A (a) ....................................... 1,142 32,333
Tele-Communications, Inc. -
Class A (a) ........................................................ 5,023 140,330
COMMUNICATIONS EQUIPMENT (C)
Northern Telecom Limited ............................................... 1 89
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
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<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (2.71%)
Automatic Data Processing, Inc. ........................................ 5,286 $ 324,428
ChoicePoint Inc. ....................................................... 99 4,727
Computer Associates
International, Inc. ................................................ 3,775 199,577
First Data Corporation ................................................. 16,851 492,892
Microsoft Corporation (a) .............................................. 650 84,013
Sun Microsystems, Inc. (a) ............................................. 1,262 50,322
Symantec Corporation (a) ............................................... 310 6,801
COMPUTER & OFFICE EQUIPMENT (3.36%)
Cisco Systems, Inc. (a) ................................................ 4,707 262,415
Compaq Computer Corporation ............................................ 369 20,825
Hewlett-Packard Company ................................................ 3,208 200,500
International Business Machines
Corporation ........................................................ 6,540 683,839
Pitney Bowes, Inc. ..................................................... 2,630 236,536
Storage Technology
Corporation (a) .................................................... 605 37,472
DEPARTMENT STORES (2.43%)
Dayton Hudson Corporation .............................................. 2,551 172,193
Federated Department
Stores, Inc. (a) ................................................... 2,825 121,652
Sears, Roebuck and Co. ................................................. 5,648 255,572
Wal-Mart Stores, Inc. .................................................. 12,538 494,467
DRUG STORES & PROPRIETARY STORES (0.19%)
Arbor Drugs, Inc. ...................................................... 4,377 80,975
ELECTRIC SERVICES (1.40%)
American Electric Power
Company, Inc. ...................................................... 2,288 118,118
CMS Energy Corporation ................................................. 1,052 46,354
Duke Energy Corporation ................................................ 2,737 151,561
Florida Progress Corporation ........................................... 1,887 74,065
FPL Group, Inc. ........................................................ 1,584 93,753
New Century Energies, Inc. ............................................. 1,157 55,464
Northern States Power Company .......................................... 547 31,863
Pinnacle West Capital
Corporation ........................................................ 699 29,620
ELECTRIC, GAS & SANITARY SERVICES (0.05%)
PG&E Corporation ....................................................... 710 21,611
ELECTRONIC COMPONENTS & ACCESSORIES (1.57%)
AMP, Inc. .............................................................. 1,021 42,882
Analog Devices, Inc. (a) ............................................... 311 8,611
Intel Corporation ...................................................... 7,811 548,723
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
Molex, Inc. - Class A .................................................. 2,504 $ 71,990
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.39%)
Emerson Electric Company ............................................... 9,000 507,938
Harman International Industries,
Incorporated ....................................................... 1,272 53,981
National Service Industries, Inc. ...................................... 726 35,982
ENGINEERING & MANAGEMENT SERVICES (0.12%)
Halliburton Company .................................................... 867 45,030
Jacobs Engineering
Group, Inc. (a) .................................................... 315 7,993
ENVIRONMENTAL SERVICES (0.38%)
Browning-Ferris Industries, Inc. ....................................... 2,213 81,881
USA Waste Services, Inc. (a) ........................................... 999 39,211
Waste Management, Inc. ................................................. 1,473 40,508
FABRICATED METAL PRODUCTS (0.23%)
Cooper Industries, Inc. ................................................ 1,578 77,322
Masco Corporation ...................................................... 421 21,418
FINANCE (1.95%)
Fannie Mae ............................................................. 14,648 835,830
FOOD STORES (0.29%)
American Stores Company ................................................ 2,663 54,758
Nestle SA .............................................................. 48 71,938
FOOD & KINDRED PRODUCTS (1.54%)
Archer-Daniels-Midland Company.......................................... 2,709 58,757
ConAgra, Inc. .......................................................... 3,156 103,556
CPC International, Inc. ................................................ 1,697 182,852
General Mills, Inc. .................................................... 1,473 105,504
Hershey Foods Corporation .............................................. 621 38,463
Kellogg Company ........................................................ 658 32,653
Ralston-Ralston Purina Group ........................................... 1,512 140,522
FORESTRY (0.28%)
Rayonier, Inc. ......................................................... 1,586 67,504
Weyerhaeuser Company ................................................... 1,117 54,803
GAS PRODUCTION & DISTRIBUTION (0.34%)
El Paso Natural Gas Company ............................................ 684 45,486
MCN Corporation ........................................................ 789 31,856
Sonat, Inc. ............................................................ 1,485 67,939
</TABLE>
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
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH SERVICES (0.29%)
Lincare Holdings, Inc. (a) ............................................ 1,236 $ 70,452
Sun Healthcare Group, Inc. (a) ........................................ 1,341 25,982
Tenet Healthcare Corporation (a)....................................... 894 29,614
HOLDING & OTHER INVESTMENT OFFICES (0.04%)
Trizec Hahn Corporation ............................................... 710 16,463
HOTELS & OTHER LODGING PLACES (0.16%)
Circus Circus Enterprises (a) ......................................... 3,340 68,470
INDUSTRIAL MACHINERY & EQUIPMENT (3.66%)
Applied Materials, Inc. (a) ........................................... 1,158 34,885
Baker Hughes Incorporated ............................................. 4,563 199,061
Deere & Company ....................................................... 3,941 229,810
Dover Corporation ..................................................... 17,462 630,815
Parker-Hannifin Corporation ........................................... 802 36,792
Stanley Works ......................................................... 2,404 113,439
Timken Company ........................................................ 1,104 37,950
United Technologies Corporation........................................ 2,900 211,156
Varian Associates, Inc. ............................................... 1,521 76,906
INSTRUMENTS & RELATED PRODUCTS (1.16%)
Allergan, Inc. ........................................................ 5,698 191,239
Perkin-Elmer Corporation .............................................. 866 61,540
Xerox Corporation ..................................................... 3,304 243,877
INSURANCE (5.61%)
American International
Group, Inc. ....................................................... 3,912 425,430
Chubb Corporation ..................................................... 2,932 221,733
CMAC Investment Corporation ........................................... 47 2,838
General Re Corporation ................................................ 1,960 415,520
Hartford Financial Services
Group Inc. ........................................................ 604 56,512
Loews Corporation ..................................................... 3,467 367,935
TIG Holdings, Inc. .................................................... 2,074 68,831
Travelers Group, Inc. ................................................. 14,667 790,185
UNUM Corporation ...................................................... 1,143 62,151
INSURANCE AGENTS, BROKERS & SERVICE (0.56%)
Marsh & McLennan
Companies, Inc. ................................................... 3,202 238,749
LEATHER & LEATHER PRODUCTS (0.03%)
Nine West Group, Inc. (a) ............................................. 526 13,643
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (1.40%)
Aegon nv - ADR (b) .................................................... 221 $ 19,807
CIGNA Corporation ..................................................... 289 50,015
Equitable Companies Incorporated....................................... 526 26,169
Jefferson-Pilot Corporation ........................................... 371 28,892
Lincoln National Corporation .......................................... 2,025 158,203
Provident Companies, Inc. ............................................. 5,891 227,540
Providian Financial
Corporation (b) ................................................... 3 136
ReliaStar Financial Corporation ....................................... 2,152 88,636
LUMBER & CONSTUCTION MATERIALS (0.29%)
Martin Marietta Materials, Inc. ....................................... 3,464 126,653
LUMBER & OTHER BUILDING MATERIALS (0.94%)
Home Depot, Inc. ...................................................... 5,045 297,024
Lowe's Companies, Inc. ................................................ 2,262 107,869
MACHINERY, EQUIPMENT & SUPPLIES (0.05%)
Mannesmann AG ......................................................... 45 22,744
MANUFACTURING INDUSTRIES (0.22%)
Armstrong World Industries, Inc. ...................................... 577 43,131
Tyco International Ltd. ............................................... 1,136 51,191
MEDICAL INSTRUMENTS & SUPPLIES (0.30%)
Baxter International Inc. ............................................. 1,478 74,547
DENTSPLY International Inc. ........................................... 1,789 54,565
METAL MINING (0.38%)
Barrick Gold Corporation .............................................. 2,104 39,187
Newmont Mining Corporation ............................................ 4,285 125,872
MINING (0.10%)
Pittston Brink's Group ................................................ 1,052 42,343
MORTGAGE BANKERS AND BROKERS (0.11%)
Countrywide Credit
Industries, Inc. .................................................. 990 42,446
Green Tree Financial Corporation....................................... 155 4,059
MOTION PICTURES (1.45%)
Liberty Media Group -
Class A (a) ....................................................... 1,657 60,066
Time Warner, Inc. ..................................................... 1,412 87,544
Walt Disney Company ................................................... 4,787 474,212
</TABLE>
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
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<PAGE>
WRL SERIES FUND, INC.
U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MOTOR VEHICLES, PARTS & SUPPLIES (0.05%)
Federal-Mogul Corporation .............................................. 526 $ 21,303
OIL & GAS EXTRACTION (3.43%)
Anadarko Petroleum Corporation.......................................... 990 60,081
Atlantic Richfield Company ............................................. 3,036 243,260
Burlington Resources Inc. .............................................. 4,943 221,508
Diamond Offshore Drilling, Inc. ........................................ 557 26,806
Nabors Industries, Inc. (a) ............................................ 3,210 100,914
Schlumberger Limited ................................................... 8,166 657,363
Total SA - Sponsored ADR ............................................... 1,683 93,407
Union Pacific Resources
Group Inc. ......................................................... 1,794 43,505
Western Atlas Inc. (a) ................................................. 342 25,308
PAINT, GLASS, WALLPAPER STORES (0.36%)
Sherwin-Williams Company ............................................... 5,582 154,901
PAPER & ALLIED PRODUCTS (1.22%)
Champion International
Corporation ........................................................ 658 29,816
Kimberly-Clark Corporation ............................................. 7,774 383,355
Mead Corporation ....................................................... 2,939 82,292
Union Camp Corporation ................................................. 552 29,636
PERSONAL CREDIT INSTITUTIONS (0.91%)
American Express Company (d) ........................................... 4,393 392,075
PETROLEUM REFINING (5.24%)
Amoco Corporation ...................................................... 2,871 244,394
British Petroleum Company Plc -
Sponsored ADR ...................................................... 1,665 132,680
Elf Aquitaine SA - ADR ................................................. 447 26,205
Exxon Corporation ...................................................... 9,956 609,183
Mobil Corporation ...................................................... 5,037 363,608
Royal Dutch Petroleum Company........................................... 7,600 411,825
Texaco Inc. ............................................................ 4,039 219,621
Tosco Corporation ...................................................... 1,000 37,813
Unocal Corporation ..................................................... 4,438 172,250
Valero Energy Corporation .............................................. 947 29,771
PETROLEUM & PETROLEUM PRODUCTS (0.03%)
Pennzoil Company ....................................................... 189 12,628
PHARMACEUTICALS (8.34%)
Abbott Laboratories .................................................... 7,627 500,045
American Home Products
Corporation ........................................................ 1,243 95,090
Bristol-Myers Squibb Company ........................................... 8,062 762,867
NUMBER MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Cardinal Health, Inc. .................................................. 2,998 $ 225,225
Eli Lilly and Company .................................................. 1,094 76,170
Merck & Co., Inc. ...................................................... 5,548 589,475
Pfizer Inc. ............................................................ 6,077 453,116
R. P. Scherer Corporation (a) .......................................... 2,306 140,666
Schering-Plough Corporation ............................................ 3,926 243,903
SmithKline Beecham Plc - ADR ........................................... 4,701 241,808
Watson Pharmaceuticals, Inc. (a)........................................ 7,795 252,850
PRIMARY METAL INDUSTRIES (1.03%)
Hubbell Incorporated - Class B ......................................... 8,945 441,100
PRINTING & PUBLISHING (0.81%)
Gannett Company, Inc. .................................................. 5,303 327,792
Knight -Ridder, Inc. ................................................... 422 21,944
RAILROADS (1.13%)
Burlington Northern Santa Fe ........................................... 2,825 262,548
Canadian Pacific, Ltd. ................................................. 5,912 161,102
Union Pacific Corporation .............................................. 973 60,752
RESEARCH & TESTING SERVICES (0.20%)
AC Nielsen Corporation (a) ............................................. 3,522 85,849
RESTAURANTS (0.36%)
McDonald's Corporation ................................................. 3,270 156,143
RETAIL TRADE (0.52%)
Costco Companies, Inc. (a) ............................................. 2,131 95,096
Toys "R" Us, Inc. (a) .................................................. 4,132 129,900
RUBBER & MISC. PLASTIC PRODUCTS (0.18%)
Goodyear Tire & Rubber
Company ............................................................ 1,237 78,704
SECURITY & COMMODITY BROKERS (1.91%)
A.G. Edwards, Inc. ..................................................... 1,198 47,621
Merrill Lynch & Co., Inc. .............................................. 680 49,598
Morgan Stanley, Dean Witter,
Discover and Co. ................................................... 7,317 432,618
Reuters Holdings Plc - ADR ............................................. 3,912 259,170
T. Rowe Price Associates, Inc. ......................................... 500 31,438
STONE, CLAY & GLASS PRODUCTS (0.07%)
Corning Inc. ........................................................... 789 29,292
TELECOMMUNICATIONS (4.40%)
360 Communications
Company (a) ........................................................ 287 5,794
</TABLE>
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
December 31, 1997
(continued)
--------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
AirTouch Communications,
Inc. (a) (d) ...................................................... 12,177 $ 506,107
AT&T Corporation (d) .................................................. 2,784 170,520
Bell Atlantic Corporation ............................................. 2,667 242,697
BellSouth Corporation ................................................. 3,569 200,979
GTE Corporation ....................................................... 2,196 114,741
SBC Communications Inc. ............................................... 4,967 363,833
Sprint Corporation .................................................... 1,299 76,154
U S West Communications
Group ............................................................. 1,856 83,752
WorldCom, Inc. (a) .................................................... 4,208 127,292
TEXTILE MILL PRODUCTS (0.46%)
Sara Lee Corporation .................................................. 3,493 196,700
TOBACCO PRODUCTS (1.04%)
Philip Morris Companies Inc. .......................................... 9,836 445,694
TRANSPORTATION EQUIPMENT (0.06%)
FMC Corporation (a) ................................................... 364 24,502
TRANSPORTATION & PUBLIC UTILITIES (0.04%)
GATX Corporation ...................................................... 123 8,925
Laidlaw, Inc. ......................................................... 658 8,965
WATER TRANSPORTATION (0.17%)
Carnival Corporation .................................................. 1,299 71,932
WHOLESALE TRADE DURABLE GOODS (1.64%)
Johnson & Johnson ..................................................... 10,110 665,996
Sybron International
Corporation (a) ................................................... 789 37,034
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE NONDURABLE GOODS (0.28%)
International Multifoods
Corporation ....................................................... 447 $ 12,656
Sysco Corporation ..................................................... 922 42,009
Unilever NV - NY Shares - ADR.......................................... 1,084 67,682
------------
Total Common Stocks
(cost: $ 36,369,397)........................................................... 37,469,381
------------
Total Investment Securities
(cost: $ 36,610,152)........................................................... $ 37,714,170
============
SUMMARY
Investments at value .................................................. 87.81% $ 37,714,170
Other Assets in
Excess of Liabilities ............................................. 12.19% 5,237,236
------ ------------
Net Assets ............................................................ 100.00% $ 42,951,406
====== ============
</TABLE>
INVESTMENTS BY COUNTRY
SIZE OF INVESTMENT IS INDICATED AS A PERCENTAGE OF PORTFOLIO NET ASSETS.
MARKET
VALUE PERCENTAGE
--------------- -----------
Germany ............... $ 22,744 0.05%
Switzerland ........... 71,938 0.17%
United States ......... 42,856,724 99.78%
------------ ------
Net Assets ........... $ 42,951,406 100.00%
============ ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No income dividends were paid during the preceding twelve months.
(b) Affiliated company. See note 2C to the financial statements.
(c) Percentage is less than .01%.
(d) A portion of the security was pledged to cover margin requirements for
futures contracts. At December 31, 1997, the market value of
securities pledged amounted to $ 362,544.
ADR American Depositary Receipts
See notes to schedule of investments.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
81
<PAGE>
WRL SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
At December 31,1997
All amounts (except per share amounts) in thousands
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 0 $ 114,616
========== =========
Investments in securities, at market value ..................... $ 0 $ 117,376
Short-term securities, at amortized cost ....................... 119,047 10,484
Cash ........................................................... 0 0
Cash collateral for securities on loan ......................... 0 37,336
Receivables:
Securities sold ............................................... 0 0
Interest ...................................................... 728 1,796
Dividends ..................................................... 0 0
Dividend reclaims receivable .................................. 0 0
Foreign currency contracts .................................... 0 0
Other ......................................................... 0 107
---------- ---------
Total assets ................................................. 119,775 167,099
---------- ---------
LIABILITIES:
Securities purchased ........................................... 0 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0
Due to foreign sub-custodian .................................. 0 0
Dividends to shareholders ..................................... 17 0
Deposits for securities on loan ............................... 0 37,336
Foreign currency contracts .................................... 0 0
Other Fees .................................................... 50 109
---------- ---------
Total liabilities ............................................ 67 37,445
---------- ---------
Net assets .................................................. $ 119,708 $ 129,654
========== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 225,000 25,000
========== =========
Capital stock ($.01 par value) ................................. $ 1,197 $ 116
Additional paid-in-capital ..................................... 118,511 132,868
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 0 188
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. 0 (6,278)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 0 2,760
Foreign currency transactions ................................. 0 0
Futures contracts ............................................. 0 0
---------- ---------
Net assets applicable to outstanding shares of capital ......... $ 119,708 $ 129,654
========== =========
Shares outstanding at December 31, 1997 ........................ 119,708 11,637
========== =========
Net asset value and offering price per share ................... $ 1.00 $ 11.14
========== =========
<CAPTION>
STRATEGIC
TOTAL
GROWTH GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO (A)
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 1,211,126 $ 655,869 $ 421,646
=========== ========= ==========
Investments in securities, at market value ..................... $ 1,675,521 $ 774,622 $ 519,950
Short-term securities, at amortized cost ....................... 172,614 0 2,238
Cash ........................................................... 0 1,610 11
Cash collateral for securities on loan ......................... 164,174 67,521 41,589
Receivables:
Securities sold ............................................... 221 20,570 452
Interest ...................................................... 27 10 3,239
Dividends ..................................................... 1,141 393 646
Dividend reclaims receivable .................................. 16 268 3
Foreign currency contracts .................................... 554 6,080 0
Other ......................................................... 781 331 276
----------- --------- ----------
Total assets ................................................. 2,015,049 871,405 568,404
----------- --------- ----------
LIABILITIES:
Securities purchased ........................................... 7,313 9,978 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0 0
Due to foreign sub-custodian .................................. 0 0 0
Dividends to shareholders ..................................... 0 0 0
Deposits for securities on loan ............................... 164,174 67,521 41,589
Foreign currency contracts .................................... 2,092 7,631 0
Other Fees .................................................... 2,017 309 238
----------- --------- ----------
Total liabilities ............................................ 175,596 85,439 41,827
----------- --------- ----------
Net assets .................................................. $ 1,839,453 $ 785,966 $ 526,577
=========== ========= ==========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 125,000 100,000 100,000
=========== ========= ==========
Capital stock ($.01 par value) ................................. $ 499 $ 412 $ 337
Additional paid-in-capital ..................................... 1,352,624 669,027 425,465
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 3,203 5,937 1,275
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. 20,271 (6,557) 1,196
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 464,395 118,753 98,304
Foreign currency transactions ................................. (1,539) (1,606) 0
Futures contracts ............................................. 0 0 0
----------- --------- ----------
Net assets applicable to outstanding shares of capital ......... $ 1,839,453 $ 785,966 $ 526,577
=========== ========= ==========
Shares outstanding at December 31, 1997 ........................ 49,925 41,272 33,702
=========== ========= ==========
Net asset value and offering price per share ................... $ 36.84 $ 19.04 $ 15.62
=========== ========= ==========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
82
W R L S e r i e s F u n d , I n c .
<PAGE>
WRL SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
At December 31,1997
All amounts (except per share amounts) in thousands
----------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE
GROWTH GROWTH
PORTFOLIO PORTFOLIO
<S> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 407,062 $ 262,431
========== ==========
Investments in securities, at market value ..................... $ 559,818 $ 315,974
Short-term securities, at amortized cost ....................... 32,155 15,740
Cash ........................................................... 0 1
Cash collateral for securities on loan ......................... 115,539 28,527
Receivables:
Securities sold ............................................... 1,971 4,235
Interest ...................................................... 18 7
Dividends ..................................................... 121 194
Dividend reclaims receivable .................................. 2 2
Foreign currency contracts .................................... 0 0
Other ......................................................... 586 224
---------- ----------
Total assets ................................................. 710,210 364,904
---------- ----------
LIABILITIES:
Securities purchased ........................................... 1,681 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0
Due to foreign sub-custodian .................................. 0 0
Dividends to shareholders ..................................... 0 0
Deposits for securities on loan ............................... 115,539 28,527
Foreign currency contracts .................................... 0 0
Other Fees .................................................... 987 211
---------- ----------
Total liabilities ............................................ 118,207 28,738
---------- ----------
Net assets .................................................. $ 592,003 $ 336,166
========== ==========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 100,000 75,000
========== ==========
Capital stock ($.01 par value) ................................. $ 291 $ 210
Additional paid-in-capital ..................................... 438,343 275,260
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 15 506
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. 598 6,647
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 152,756 53,543
Foreign currency transactions ................................. 0 0
Futures contracts ............................................. 0 0
---------- ----------
Net assets applicable to outstanding shares of capital ......... $ 592,003 $ 336,166
========== ==========
Shares outstanding at December 31, 1997 ........................ 29,066 20,952
========== ==========
Net asset value and offering price per share ................... $ 20.37 $ 16.04
========== ==========
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO (A) PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 65,420 $ 47,751 $ 244,980
======== ========= ==========
Investments in securities, at market value ..................... $ 72,847 $ 52,239 $ 271,656
Short-term securities, at amortized cost ....................... 220 9,070 29,637
Cash ........................................................... 0 0 824
Cash collateral for securities on loan ......................... 8,776 4,224 32,918
Receivables:
Securities sold ............................................... 2,649 372 514
Interest ...................................................... 384 79 1,595
Dividends ..................................................... 151 198 240
Dividend reclaims receivable .................................. 3 0 0
Foreign currency contracts .................................... 0 0 0
Other ......................................................... 53 22 168
-------- --------- ----------
Total assets ................................................. 85,083 66,204 337,552
-------- --------- ----------
LIABILITIES:
Securities purchased ........................................... 2,810 1,421 1,727
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0 0
Due to foreign sub-custodian .................................. 0 0 0
Dividends to shareholders ..................................... 0 0 0
Deposits for securities on loan ............................... 8,776 4,224 32,918
Foreign currency contracts .................................... 0 0 0
Other Fees .................................................... 46 67 162
-------- --------- ----------
Total liabilities ............................................ 11,632 5,712 34,807
-------- --------- ----------
Net assets .................................................. $ 73,451 $ 60,492 $ 302,745
======== ========= ==========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 75,000 75,000 75,000
======== ========= ==========
Capital stock ($.01 par value) ................................. $ 61 $ 48 $ 222
Additional paid-in-capital ..................................... 65,990 54,176 267,703
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 597 1,554 848
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. (624) 226 7,296
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 7,427 4,488 26,676
Foreign currency transactions ................................. 0 0 0
Futures contracts ............................................. 0 0 0
-------- --------- ----------
Net assets applicable to outstanding shares of capital ......... $ 73,451 $ 60,492 $ 302,745
======== ========= ==========
Shares outstanding at December 31, 1997 ........................ 6,116 4,817 22,239
======== ========= ==========
Net asset value and offering price per share ................... $ 12.01 $ 12.56 $ 13.61
======== ========= ==========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
83
<PAGE>
WRL SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
At December 31,1997
All amounts (except per share amounts) in thousands
----------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GLOBAL
GROWTH SECTOR
PORTFOLIO PORTFOLIO (A)
<S> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 57,554 $ 12,180
======== ========
Investments in securities, at market value ..................... $ 56,966 $ 12,079
Short-term securities, at amortized cost ....................... 0 0
Cash ........................................................... 3,597 590
Cash collateral for securities on loan ......................... 0 0
Receivables:
Securities sold ............................................... 0 0
Interest ...................................................... 8 46
Dividends ..................................................... 25 5
Dividend reclaims receivable .................................. 0 1
Foreign currency contracts .................................... 0 0
Other ......................................................... 0 0
-------- --------
Total assets ................................................. 60,596 12,721
-------- --------
LIABILITIES:
Securities purchased ........................................... 0 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0
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 .................................................... 0 0
-------- --------
Total liabilities ............................................ 0 0
-------- --------
Net assets .................................................. $ 60,596 $ 12,721
======== ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 75,000 75,000
======== ========
Capital stock ($.01 par value) ................................. $ 43 $ 12
Additional paid-in-capital ..................................... 59,280 12,806
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 1,677 16
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. 184 (12)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... (588) (101)
Foreign currency transactions ................................. 0 0
Futures contracts ............................................. 0 0
-------- --------
Net assets applicable to outstanding shares of capital ......... $ 60,596 $ 12,721
======== ========
Shares outstanding at December 31, 1997 ........................ 4,325 1,227
======== ========
Net asset value and offering price per share ................... $ 14.01 $ 10.37
======== ========
<CAPTION>
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 132,554 $ 18,168 $ 36,610
========== ======== ========
Investments in securities, at market value ..................... $ 155,156 $ 18,333 $ 37,714
Short-term securities, at amortized cost ....................... 18,725 0 0
Cash ........................................................... 0 1,523 5,186
Cash collateral for securities on loan ......................... 0 0 0
Receivables:
Securities sold ............................................... 0 106 137
Interest ...................................................... 2 6 21
Dividends ..................................................... 98 9 40
Dividend reclaims receivable .................................. 0 5 0
Foreign currency contracts .................................... 0 7 0
Other ......................................................... 0 0 0
---------- -------- --------
Total assets ................................................. 173,981 19,989 43,098
---------- -------- --------
LIABILITIES:
Securities purchased ........................................... 463 194 146
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0 0
Due to foreign sub-custodian .................................. 0 0 0
Dividends to shareholders ..................................... 0 0 0
Deposits for securities on loan ............................... 0 0 0
Foreign currency contracts .................................... 0 0 0
Other Fees .................................................... 83 0 1
---------- -------- --------
Total liabilities ............................................ 546 194 147
---------- -------- --------
Net assets .................................................. $ 173,435 $ 19,795 $ 42,951
========== ======== ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 75,000 75,000 75,000
========== ======== ========
Capital stock ($.01 par value) ................................. $ 125 $ 18 $ 35
Additional paid-in-capital ..................................... 150,158 20,019 41,333
Accumulated undistributed (distributions in excess of)
net investment income (loss) .................................. 104 11 532
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ................................. 446 (422) (72)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 22,602 165 1,104
Foreign currency transactions ................................. 0 4 0
Futures contracts ............................................. 0 0 19
---------- -------- --------
Net assets applicable to outstanding shares of capital ......... $ 173,435 $ 19,795 $ 42,951
========== ======== ========
Shares outstanding at December 31, 1997 ........................ 12,473 1,850 3,511
========== ======== ========
Net asset value and offering price per share ................... $ 13.90 $ 10.70 $ 12.23
========== ======== ========
</TABLE>
(a) Prior to March 1, 1997, this Portfolio was named Meridian/INVESCO Global
Sector Portfolio.
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.
STATEMENT OF OPERATIONS
For the year ended December 31, 1997
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $ 7,278 $ 6,365
Dividends ................................................................. 0 0
Foreign tax withheld ...................................................... 0 0
-------- -------
Total investment income ................................................. 7,278 6,365
-------- -------
EXPENSES:
Investment advisory fees .................................................. 515 480
Printing and shareholder reports .......................................... 19 48
Custody fees .............................................................. 35 32
Administrative service fees ............................................... 12 31
Legal fees ................................................................ 2 5
Auditing and accounting fees .............................................. 10 10
Directors fees ............................................................ 0 1
Registration fees ......................................................... 0 0
Other fees ................................................................ 7 14
-------- -------
Total expenses .......................................................... 600 621
Less:
Advisory fee waiver and expense reimbursement ............................ 0 0
Fees paid indirectly ..................................................... 1 2
-------- -------
Net expenses ............................................................ 599 619
-------- -------
Net investment income (loss) .............................................. 6,679 5,746
-------- -------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 0 (267)
Futures contracts ........................................................ 0 (76)
Foreign currency transactions ............................................ 0 0
-------- -------
Total net realized gain (loss) .......................................... 0 (343)
-------- -------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... 0 3,049
Futures contracts ........................................................ 0 0
Foreign currency transactions ............................................ 0 0
-------- -------
Total change in unrealized appreciation (depreciation) .................. 0 3,049
-------- -------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 0 2,706
-------- -------
Net increase (decrease) in net assets resulting from operations ......... $ 6,679 $ 8,452
======== =======
<CAPTION>
STRATEGIC
TOTAL
GROWTH GLOBAL RETURN
PORTFOLIO PORTFOLIO PORTFOLIO (A)
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $ 14,154 $ 1,915 $ 8,437
Dividends ................................................................. 14,406 8,790 6,822
Foreign tax withheld ...................................................... (77) (990) (13)
--------- --------- --------
Total investment income ................................................. 28,483 9,715 15,246
--------- --------- --------
EXPENSES:
Investment advisory fees .................................................. 13,717 5,592 3,704
Printing and shareholder reports .......................................... 381 223 129
Custody fees .............................................................. 285 816 80
Administrative service fees ............................................... 260 165 88
Legal fees ................................................................ 41 25 14
Auditing and accounting fees .............................................. 35 23 16
Directors fees ............................................................ 8 5 3
Registration fees ......................................................... 3 2 1
Other fees ................................................................ 104 57 35
--------- --------- --------
Total expenses .......................................................... 14,834 6,908 4,070
Less:
Advisory fee waiver and expense reimbursement ............................ 0 0 0
Fees paid indirectly ..................................................... 12 2 5
--------- --------- --------
Net expenses ............................................................ 14,822 6,906 4,065
--------- --------- --------
Net investment income (loss) .............................................. 13,661 2,809 11,181
--------- --------- --------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 192,377 65,228 34,138
Futures contracts ........................................................ 0 (443) 0
Foreign currency transactions ............................................ 428 17,296 0
--------- --------- --------
Total net realized gain (loss) .......................................... 192,805 82,081 34,138
--------- --------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... 63,844 29,645 44,737
Futures contracts ........................................................ 0 0 0
Foreign currency transactions ............................................ (2,005) (4,558) 0
--------- --------- --------
Total change in unrealized appreciation (depreciation) .................. 61,839 25,087 44,737
--------- --------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 254,644 107,168 78,875
--------- --------- --------
Net increase (decrease) in net assets resulting from operations ......... $ 268,305 $ 109,977 $ 90,056
========= ========= ========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
85
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF OPERATIONS
For the year ended December 31, 1997
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
EMERGING AGGRESSIVE
GROWTH GROWTH
PORTFOLIO PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $ 2,167 $ 769
Dividends ................................................................. 1,190 1,751
Foreign tax withheld ...................................................... (2) (4)
---------- ----------
Total investment income ................................................. 3,355 2,516
--------- ---------
EXPENSES:
Investment advisory fees .................................................. 4,075 2,250
Printing and shareholder reports .......................................... 238 173
Custody fees .............................................................. 114 56
Administrative service fees ............................................... 166 123
Legal fees ................................................................ 26 19
Auditing and accounting fees .............................................. 16 10
Directors fees ............................................................ 5 4
Registration fees ......................................................... 2 1
Other fees ................................................................ 64 46
--------- ---------
Total expenses .......................................................... 4,706 2,682
Less:
Advisory fee waiver and expense reimbursement ............................ 0 0
Fees paid indirectly ..................................................... 1 0
--------- ---------
Net expenses ............................................................ 4,705 2,682
--------- ---------
Net investment income (loss) .............................................. (1,350) (166)
--------- ---------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 52,368 36,183
Futures contracts ........................................................ 0 0
Foreign currency transactions ............................................ 0 0
--------- ---------
Total net realized gain (loss) .......................................... 52,368 36,183
--------- ---------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... 46,598 20,413
Futures contracts ........................................................ 0 0
Foreign currency transactions ............................................ 0 0
--------- ---------
Total change in unrealized appreciation (depreciation) .................. 46,598 20,413
--------- ---------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 98,966 56,956
--------- ---------
Net increase (decrease) in net assets resulting from operations ......... $ 97,616 $ 56,430
========= =========
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION
PORTFOLIO PORTFOLIO (A) PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $1,366 $ 401 $ 7,006
Dividends ................................................................. 1,129 1,783 2,136
Foreign tax withheld ...................................................... (3) (1) (14)
--------- ---------- --------
Total investment income ................................................. 2,492 2,183 9,128
-------- --------- --------
EXPENSES:
Investment advisory fees .................................................. 492 338 2,080
Printing and shareholder reports .......................................... 26 31 55
Custody fees .............................................................. 18 31 60
Administrative service fees ............................................... 18 17 42
Legal fees ................................................................ 3 3 6
Auditing and accounting fees .............................................. 10 10 10
Directors fees ............................................................ 1 1 1
Registration fees ......................................................... 0 0 1
Other fees ................................................................ 7 6 14
-------- --------- --------
Total expenses .......................................................... 575 437 2,269
Less:
Advisory fee waiver and expense reimbursement ............................ 0 0 0
Fees paid indirectly ..................................................... 1 1 5
-------- --------- --------
Net expenses ............................................................ 574 436 2,264
-------- --------- --------
Net investment income (loss) .............................................. 1,918 1,747 6,864
-------- --------- --------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 5,106 7,816 21,974
Futures contracts ........................................................ 0 0 0
Foreign currency transactions ............................................ 0 (4) 0
-------- ---------- --------
Total net realized gain (loss) .......................................... 5,106 7,812 21,974
-------- --------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... 2,540 1,006 10,442
Futures contracts ........................................................ 0 0 0
Foreign currency transactions ............................................ 0 0 0
-------- --------- --------
Total change in unrealized appreciation (depreciation) .................. 2,540 1,006 10,442
-------- --------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 7,646 8,818 32,416
-------- --------- --------
Net increase (decrease) in net assets resulting from operations ......... $ 9,564 $ 10,565 $ 39,280
======== ========= ========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
86
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 year or period ended December 31, 1997
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GLOBAL
GROWTH SECTOR
PORTFOLIO PORTFOLIO (A)
<S> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $ 212 $ 261
Dividends ................................................................. 310 60
Foreign tax withheld ...................................................... 0 (6)
--------- ---------
Total investment income ................................................. 522 315
--------- --------
EXPENSES:
Investment advisory fees .................................................. 335 86
Printing and shareholder reports .......................................... 61 42
Custody fees .............................................................. 49 45
Administrative service fees ............................................... 16 2
Legal fees ................................................................ 2 0
Auditing and accounting fees .............................................. 6 5
Directors fees ............................................................ 0 0
Registration fees ......................................................... 0 0
Other fees ................................................................ 4 2
--------- --------
Total expenses .......................................................... 473 182
Less:
Advisory fee waiver and expense reimbursement ............................ 50 0
Fees paid indirectly ..................................................... 4 2
--------- --------
Net expenses ............................................................ 419 180
--------- --------
Net investment income (loss) .............................................. 103 135
--------- --------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 6,966 461
Futures contracts ........................................................ 0 0
Foreign currency transactions ............................................ 0 19
--------- --------
Total net realized gain (loss) .......................................... 6,966 480
--------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... (2,149) (372)
Futures contracts ........................................................ 0 0
Foreign currency transactions ............................................ 0 0
--------- --------
Total change in unrealized appreciation (depreciation) .................. (2,149) (372)
--------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 4,817 108
--------- --------
Net increase (decrease) in net assets resulting from operations ......... $ 4,920 $ 243
========= ========
<CAPTION>
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO (B) PORTFOLIO (B)
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................................................. $ 789 $ 72 $ 125
Dividends ................................................................. 1,219 133 233
Foreign tax withheld ...................................................... (5) (18) (1)
---------- ------- ---------
Total investment income ................................................. 2,003 187 357
--------- ------- --------
EXPENSES:
Investment advisory fees .................................................. 901 112 140
Printing and shareholder reports .......................................... 23 2 2
Custody fees .............................................................. 38 210 105
Administrative service fees ............................................... 23 4 3
Legal fees ................................................................ 3 0 0
Auditing and accounting fees .............................................. 5 5 5
Directors fees ............................................................ 1 0 0
Registration fees ......................................................... 0 0 0
Other fees ................................................................ 5 15 10
--------- ------- --------
Total expenses .......................................................... 999 348 265
Less:
Advisory fee waiver and expense reimbursement ............................ 0 179 29
Fees paid indirectly ..................................................... 0 2 8
--------- ------- --------
Net expenses ............................................................ 999 167 228
--------- ------- --------
Net investment income (loss) .............................................. 1,004 20 129
--------- ------- --------
REALIZED AND UNREALIZED GAIN\LOSS
Net realized gain (loss) on:
Investment securities .................................................... 1,710 (422) 1,545
Futures contracts ........................................................ 0 0 349
Foreign currency transactions ............................................ 0 76 0
--------- ------- --------
Total net realized gain (loss) .......................................... 1,710 (346) 1,894
--------- ------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities .................................................... 19,277 165 1,104
Futures contracts ........................................................ 0 0 19
Foreign currency transactions ............................................ 0 4 0
--------- ------- --------
Total change in unrealized appreciation (depreciation) .................. 19,277 169 1,123
--------- ------- --------
Net gain (loss) on investment securities, futures contracts and foreign
currency transactions .................................................... 20,987 (177) 3,017
--------- ------- --------
Net increase (decrease) in net assets resulting from operations ......... $ 21,991 $ (157) $ 3,146
========= ======= ========
</TABLE>
(a) Prior to March 1, 1997, this Portfolio was named Meridian/INVESCO Global
Sector Portfolio.
(b) The inception date of the Portfolio was January 2, 1997.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
87
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year ended
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
PORTFOLIO PORTFOLIO
--------------------------- ---------------------------
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 6,679 $ 5,074 $ 5,746 $ 5,633
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 0 0 (343) 1,597
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 0 0 3,049 (7,255)
----------- ----------- --------- ----------
Net increase (decrease) in net assets resulting
from operations ................................... 6,679 5,074 8,452 (25)
----------- ----------- --------- ----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (6,679) (5,074) (5,720) (5,488)
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 ............................... (6,679) (5,074) (5,720) (5,488)
----------- ----------- --------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 265,418 177,545 53,537 24,809
Dividends and distributions reinvested ............. 6,679 5,074 5,720 5,488
Cost of shares redeemed ............................ (274,503) (141,049) (28,094) (25,997)
----------- ----------- --------- ----------
Increase (decrease) in net assets from capital
share transactions ............................... (2,406) 41,570 31,163 4,300
----------- ----------- --------- ----------
Net increase (decrease) in net assets .............. (2,406) 41,570 33,895 (1,213)
NET ASSETS:
Beginning of period ................................ 122,114 80,544 95,759 96,972
----------- ----------- --------- ----------
End of period ...................................... $ 119,708 $ 122,114 $ 129,654 $ 95,759
=========== =========== ========= ==========
Undistributed (distributions in excess of) net
investment income ................................ $ 0 $ 0 $ 188 $ 162
=========== =========== ========= ==========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 122,114 80,544 8,943 8,547
----------- ----------- --------- ----------
Shares issued ...................................... 265,418 177,545 4,738 2,282
Shares issued-reinvestment of dividends
and distributions ................................. 6,679 5,074 518 515
Shares redeemed .................................... (274,503) (141,049) (2,562) (2,401)
----------- ----------- --------- ----------
Increase (decrease) in shares outstanding .......... (2,406) 41,570 2,694 396
----------- ----------- --------- ----------
Shares outstanding - end of period ................. 119,708 122,114 11,637 8,943
=========== =========== ========= ==========
<CAPTION>
GROWTH
PORTFOLIO
-------------------------------
DECEMBER 31 DECEMBER 31
1997 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 13,661 $ 13,626
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 192,805 90,854
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 61,839 116,259
----------- -----------
Net increase (decrease) in net assets resulting
from operations ................................... 268,305 220,739
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (12,508) (14,202)
In excess of net investment income ................. 0 (585)
Net realized gains ................................. (183,828) (81,745)
In excess of net realized gains .................... 0 0
----------- -----------
Total distributions ............................... (196,336) (96,532)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 211,999 219,915
Dividends and distributions reinvested ............. 196,336 96,532
Cost of shares redeemed ............................ (168,260) (108,419)
----------- -----------
Increase (decrease) in net assets from capital
share transactions ............................... 240,075 208,028
----------- -----------
Net increase (decrease) in net assets .............. 312,044 332,235
NET ASSETS:
Beginning of period ................................ 1,527,409 1,195,174
----------- -----------
End of period ...................................... $ 1,839,453 $ 1,527,409
=========== ===========
Undistributed (distributions in excess of) net
investment income ................................ $ 3,203 $ 2,199
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 43,639 37,749
----------- -----------
Shares issued ...................................... 5,508 6,262
Shares issued-reinvestment of dividends
and distributions ................................. 5,203 2,731
Shares redeemed .................................... (4,425) (3,103)
----------- -----------
Increase (decrease) in shares outstanding .......... 6,286 5,890
----------- -----------
Shares outstanding - end of period ................. 49,925 43,639
=========== ===========
</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 CHANGES IN NET ASSETS
For the year ended
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
GLOBAL
PORTFOLIO
---------------------------
DECEMBER 31 DECEMBER 31
1997 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 2,809 $ 1,967
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 82,081 51,505
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 25,087 45,462
--------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 109,977 98,934
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (4,928) (1,163)
In excess of net investment income ................. (39,132) (4,517)
Net realized gains ................................. (49,141) (39,909)
In excess of net realized gains .................... 0 0
--------- ---------
Total distributions ............................... (93,201) (45,589)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 203,595 186,542
Dividends and distributions reinvested ............. 93,201 45,589
Cost of shares redeemed ............................ (62,426) (40,162)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 234,370 191,969
--------- ---------
Net increase (decrease) in net assets .............. 251,146 245,314
NET ASSETS:
Beginning of period ................................ 534,820 289,506
--------- ---------
End of period ...................................... $ 785,966 $ 534,820
========= =========
Undistributed (distributions in excess of) net
investment income ................................ $ 5,937 $ 2,119
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 29,523 18,659
--------- ---------
Shares issued ...................................... 10,065 10,475
Shares issued-reinvestment of dividends
and distributions ................................. 4,695 2,527
Shares redeemed .................................... (3,011) (2,138)
--------- ---------
Increase (decrease) in shares outstanding .......... 11,749 10,864
--------- ---------
Shares outstanding - end of period ................. 41,272 29,523
========= =========
<CAPTION>
STRATEGIC
TOTAL RETURN EMERGING GROWTH
PORTFOLIO (A) PORTFOLIO
--------------------------- --------------------------
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
1997 1996 1997 1996
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 11,181 $ 8,362 $ (1,350) $ (892)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 34,138 13,599 52,368 20,857
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 44,737 21,360 46,598 37,787
--------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 90,056 43,321 97,616 57,752
--------- --------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (11,471) (8,090) 0 0
In excess of net investment income ................. (919) 0 0 (17)
Net realized gains ................................. (31,748) (13,149) (54,441) (18,936)
In excess of net realized gains .................... 0 0 0 0
--------- --------- --------- ---------
Total distributions ............................... (44,138) (21,239) (54,441) (18,953)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 75,270 111,098 130,853 133,226
Dividends and distributions reinvested ............. 44,138 21,239 54,441 18,953
Cost of shares redeemed ............................ (28,890) (21,084) (67,920) (48,043)
--------- --------- --------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 90,518 111,253 117,374 104,136
--------- --------- --------- ---------
Net increase (decrease) in net assets .............. 136,436 133,335 160,549 142,935
NET ASSETS:
Beginning of period ................................ 390,141 256,806 431,454 288,519
--------- --------- --------- ---------
End of period ...................................... $ 526,577 $ 390,141 $ 592,003 $ 431,454
========= ========= ========= =========
Undistributed (distributions in excess of) net
investment income ................................ $ 1,275 $ 290 $ 15 $ 0
========= ========= ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 27,923 19,962 23,371 17,758
--------- --------- --------- ---------
Shares issued ...................................... 4,860 7,995 6,410 7,201
Shares issued-reinvestment of dividends
and distributions ................................. 2,768 1,514 2,639 1,028
Shares redeemed .................................... (1,849) (1,548) (3,354) (2,616)
--------- --------- --------- ---------
Increase (decrease) in shares outstanding .......... 5,779 7,961 5,695 5,613
--------- --------- --------- ---------
Shares outstanding - end of period ................. 33,702 27,923 29,066 23,371
========= ========= ========= =========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Equity-Income Portfolio.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
89
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year ended
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
---------------------------
DECEMBER 31 DECEMBER 31
1997 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ (166) $ (191)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 36,183 8,280
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 20,413 11,230
--------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 56,430 19,319
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. 0 0
In excess of net investment income ................. (8,640) (2,671)
Net realized gains ................................. (21,613) (3,787)
In excess of net realized gains .................... 0 0
--------- ---------
Total distributions ............................... (30,253) (6,458)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 97,484 99,773
Dividends and distributions reinvested ............. 30,253 6,458
Cost of shares redeemed ............................ (38,300) (57,074)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 89,437 49,157
--------- ---------
Net increase (decrease) in net assets .............. 115,614 62,018
NET ASSETS:
Beginning of period ................................ 220,552 158,534
--------- ---------
End of period ...................................... $ 336,166 $ 220,552
========= =========
Undistributed (distributions in excess of) net
investment income ................................ $ 506 $ 0
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 15,556 11,965
--------- ---------
Shares issued ...................................... 5,967 7,309
Shares issued-reinvestment of dividends
and distributions ................................. 1,837 471
Shares redeemed .................................... (2,408) (4,189)
--------- ---------
Increase (decrease) in shares outstanding .......... 5,396 3,591
--------- ---------
Shares outstanding - end of period ................. 20,952 15,556
========= =========
<CAPTION>
BALANCED GROWTH & INCOME
PORTFOLIO PORTFOLIO (A)
--------------------------- --------------------------
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
1997 1996 1997 1996
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 1,918 $ 1,238 $ 1,747 $ 1,150
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 5,106 1,348 7,812 1,515
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 2,540 1,733 1,006 937
-------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations ................................... 9,564 4,319 10,565 3,602
-------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (2,040) (1,118) (1,900) (996)
In excess of net investment income ................. (1,739) 0 (2,580) 0
Net realized gains ................................. (3,594) (420) (3,981) (982)
In excess of net realized gains .................... 0 0 0 0
-------- -------- -------- --------
Total distributions ............................... (7,373) (1,538) (8,461) (1,978)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 20,555 19,662 20,687 18,781
Dividends and distributions reinvested ............. 7,373 1,538 8,461 1,978
Cost of shares redeemed ............................ (5,999) (5,764) (8,875) (8,875)
-------- -------- -------- --------
Increase (decrease) in net assets from capital
share transactions ............................... 21,929 15,436 20,273 11,884
-------- -------- -------- --------
Net increase (decrease) in net assets .............. 24,120 18,217 22,377 13,508
NET ASSETS:
Beginning of period ................................ 49,331 31,114 38,115 24,607
-------- -------- -------- --------
End of period ...................................... $ 73,451 $ 49,331 $ 60,492 $ 38,115
======== ======== ======== ========
Undistributed (distributions in excess of) net
investment income ................................ $ 597 $ 122 $ 1,554 $ 153
======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 4,329 2,926 3,240 2,212
-------- -------- -------- --------
Shares issued ...................................... 1,673 1,800 1,630 1,646
Shares issued-reinvestment of dividends
and distributions ................................. 603 135 665 168
Shares redeemed .................................... (489) (532) (718) (786)
-------- -------- -------- --------
Increase (decrease) in shares outstanding .......... 1,787 1,403 1,577 1,028
-------- -------- -------- --------
Shares outstanding - end of period ................. 6,116 4,329 4,817 3,240
======== ======== ======== ========
</TABLE>
(a) Prior to May 1, 1997, this Portfolio was named the Utility Portfolio.
The notes to the financial statements are an integral part of this report.
90
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 year ended
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION
PORTFOLIO
---------------------------
DECEMBER 31 DECEMBER 31
1997 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 6,864 $ 4,532
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 21,974 5,223
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 10,442 9,997
--------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 39,280 19,752
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (7,098) (4,542)
In excess of net investment income ................. (3,952) (16)
Net realized gains ................................. (11,378) (3,723)
In excess of net realized gains .................... 0 0
--------- ---------
Total distributions ............................... (22,428) (8,281)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 80,867 137,335
Dividends and distributions reinvested ............. 22,428 8,281
Cost of shares redeemed ............................ (23,574) (71,446)
--------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 79,721 74,170
--------- ---------
Net increase (decrease) in net assets .............. 96,573 85,641
NET ASSETS:
Beginning of period ................................ 206,172 120,531
--------- ---------
End of period ...................................... $ 302,745 $ 206,172
========= =========
Undistributed (distributions in excess of) net
investment income ................................ $ 848 $ 234
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 16,349 10,488
--------- ---------
Shares issued ...................................... 5,989 11,298
Shares issued-reinvestment of dividends
and distributions ................................. 1,631 660
Shares redeemed .................................... (1,730) (6,097)
--------- ---------
Increase (decrease) in shares outstanding .......... 5,890 5,861
--------- ---------
Shares outstanding - end of period ................. 22,239 16,349
========= =========
<CAPTION>
C.A.S.E. GROWTH GLOBAL SECTOR
PORTFOLIO PORTFOLIO (A)
--------------------------- --------------------------
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
1997 1996 1997 1996 (B)
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 103 $ 103 $ 135 $ 23
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 6,966 630 480 42
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... (2,149) 1,514 (372) 271
---------- -------- -------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 4,920 2,247 243 336
---------- -------- -------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (115) (96) (148) (12)
In excess of net investment income ................. (4,867) 0 (442) 0
Net realized gains ................................. (438) (430) (50) (24)
In excess of net realized gains .................... 0 0 0 0
---------- -------- -------- ---------
Total distributions ............................... (5,420) (526) (640) (36)
---------- -------- -------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 42,918 23,037 10,666 7,999
Dividends and distributions reinvested ............. 5,420 526 640 36
Cost of shares redeemed ............................ (13,801) (1,303) (5,174) (1,349)
---------- -------- -------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 34,537 22,260 6,132 6,686
---------- -------- -------- ---------
Net increase (decrease) in net assets .............. 34,037 23,981 5,735 6,986
NET ASSETS:
Beginning of period ................................ 26,559 2,578 6,986 0
---------- -------- -------- ---------
End of period ...................................... $ 60,596 $ 26,559 $ 12,721 $ 6,986
========== ======== ======== =========
Undistributed (distributions in excess of) net
investment income ................................ $ 1,677 $ 12 $ 16 $ 13
========== ======== ======== =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 1,979 221 662 0
---------- -------- -------- ---------
Shares issued ...................................... 2,855 1,821 952 788
Shares issued-reinvestment of dividends
and distributions ................................. 390 39 61 3
Shares redeemed .................................... (899) (102) (448) (129)
---------- -------- -------- ---------
Increase (decrease) in shares outstanding .......... 2,346 1,758 565 662
---------- -------- -------- ---------
Shares outstanding - end of period ................. 4,325 1,979 1,227 662
========== ======== ======== =========
</TABLE>
(a) Prior to March 1, 1997, this Portfolio was named Meridian/INVESCO Global
Sector Portfolio.
(b) The inception date of this Portfolio was May 1, 1996.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
91
<PAGE>
WRL SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the year or period ended
All amounts in thousands
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- -------------- ------------
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
1997 1996 (A) 1997 (B) 1997 (B)
------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ....................... $ 1,004 $ 193 $ 20 $ 129
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ..................... 1,710 73 (346) 1,894
Change in unrealized appreciation (depreciation)
on investment securities, futures contracts and
foreign currency transactions ..................... 19,277 3,325 169 1,123
--------- -------- -------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... 21,991 3,591 (157) 3,146
--------- -------- -------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .............................. (1,036) (161) (20) (129)
In excess of net investment income ................. (869) 0 (65) (1,301)
Net realized gains ................................. (296) (68) 0 (133)
In excess of net realized gains .................... 0 0 0 0
--------- -------- -------- ---------
Total distributions ............................... (2,201) (229) (85) (1,563)
--------- -------- -------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .................. 116,169 48,035 25,394 54,442
Dividends and distributions reinvested ............. 2,201 229 85 1,563
Cost of shares redeemed ............................ (14,119) (2,232) (5,442) (14,637)
--------- -------- -------- ---------
Increase (decrease) in net assets from capital
share transactions ............................... 104,251 46,032 20,037 41,368
--------- -------- -------- ---------
Net increase (decrease) in net assets .............. 124,041 49,394 19,795 42,951
NET ASSETS:
Beginning of period ................................ 49,394 0 0 0
--------- -------- -------- ---------
End of period ...................................... $ 173,435 $ 49,394 $ 19,795 $ 42,951
========= ======== ======== =========
Undistributed (distributions in excess of) net
investment income ................................ $ 104 $ 32 $ 11 $ 532
========= ======== ======== =========
SHARE ACTIVITY:
Shares outstanding - beginning of period ........... 4,384 0 0 0
--------- -------- -------- ---------
Shares issued ...................................... 9,039 4,575 2,346 4,640
Shares issued-reinvestment of dividends
and distributions ................................. 160 20 8 127
Shares redeemed .................................... (1,110) (211) (504) (1,256)
--------- -------- -------- ---------
Increase (decrease) in shares outstanding .......... 8,089 4,384 1,850 3,511
--------- -------- -------- ---------
Shares outstanding - end of period ................. 12,473 4,384 1,850 3,511
========= ======== ======== =========
</TABLE>
(a) The inception date of this Portfolio was May 1, 1996.
(b) The inception date of this Portfolio was January 2, 1997.
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.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
DECEMBER 31
---------------------------
1997 1996
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) ....................................... 0.05 0.05
Net realized and unrealized gain (loss) on investments ............. 0.00 0.00
-------- --------
Total income (loss) from operations ............................... 0.05 0.05
-------- --------
Distributions:
Dividends from net investment income ............................... (0.05) (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 ............................................... (0.05) (0.05)
--------- ---------
Net asset value, end of period ....................................... $ 1.00 $ 1.00
========= =========
Total return (a) ..................................................... 5.24% 5.03%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 119,708 $ 122,114
Ratio of expenses to average net assets (b) ........................ 0.48% 0.52%
Ratio of net investment income (loss) to average net assets (b) .... 5.32% 5.03%
Average commission rate paid per share ............................. N/A N/A
Portfolio turnover rate (a) ........................................ N/A N/A
<CAPTION>
MONEY MARKET PORTFOLIO
DECEMBER 31
--------------------------------------
1995 1994 1993
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 1.00 $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) ....................................... 0.05 0.04 0.02
Net realized and unrealized gain (loss) on investments ............. 0.00 0.00 0.00
------- ------- -------
Total income (loss) from operations ............................... 0.05 0.04 0.02
------- ------- -------
Distributions:
Dividends from net investment income ............................... (0.05) (0.04) (0.02)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... 0.00 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- -------- --------
Total distributions ............................................... (0.05) (0.04) (0.02)
-------- -------- --------
Net asset value, end of period ....................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total return (a) ..................................................... 5.40% 3.44% 2.45%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 80,544 $ 93,081 $ 45,782
Ratio of expenses to average net assets (b) ........................ 0.56% 0.60% 0.66%
Ratio of net investment income (loss) to average net assets (b) .... 5.30% 3.59% 2.41%
Average commission rate paid per share ............................. N/A N/A N/A
Portfolio turnover rate (a) ........................................ N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
BOND PORTFOLIO
DECEMBER 31
------------------------
1997 1996
------------ -----------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 10.71 $ 11.35
Income from operations:
Net investment income (loss) ....................................... 0.65 0.64
Net realized and unrealized gain (loss) on investments ............. 0.32 ( 0.64)
------- --------
Total income (loss) from operations ............................... 0.97 0.00
------- --------
Distributions:
Dividends from net investment income ............................... ( 0.54) ( 0.64)
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 ............................................... ( 0.54) ( 0.64)
-------- --------
Net asset value, end of period ....................................... $ 11.14 $ 10.71
======== ========
Total return (a) ..................................................... 9.16% 0.14%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $129,654 $ 95,759
Ratio of expenses to average net assets (b) ........................ 0.64% 0.64%
Ratio of net investment income (loss) to average net assets (b) .... 5.90% 5.96%
Average commission rate paid per share ............................. N/A N/A
Portfolio turnover rate (a) ........................................ 213.03% 187.72%
<CAPTION>
BOND PORTFOLIO
DECEMBER 31
-----------------------------------
1995 1994 1993
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 9.80 $ 11.24 $ 11.18
Income from operations:
Net investment income (loss) ....................................... 0.69 0.63 0.72
Net realized and unrealized gain (loss) on investments ............. 1.55 ( 1.44) 0.95
------- ------- -------
Total income (loss) from operations ............................... 2.24 ( 0.81) 1.67
------- ------- -------
Distributions:
Dividends from net investment income ............................... ( 0.69) ( 0.63) ( 0.72)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... 0.00 0.00 ( 0.89)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- ------- --------
Total distributions ............................................... ( 0.69) ( 0.63) ( 1.61)
-------- ------- --------
Net asset value, end of period ....................................... $ 11.35 $ 9.80 $ 11.24
======== ======= ========
Total return (a) ..................................................... 22.99% ( 6.94%) 13.38%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 96,972 $71,064 $ 90,715
Ratio of expenses to average net assets (b) ........................ 0.61% 0.59% 0.64%
Ratio of net investment income (loss) to average net assets (b) .... 6.45% 5.94% 5.94%
Average commission rate paid per share ............................. N/A N/A N/A
Portfolio turnover rate (a) ........................................ 120.54% 131.73% 149.02%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
93
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
DECEMBER 31
-------------------------------
1997 1996
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period .................................. $ 35.00 $ 31.66
Income from operations:
Net investment income (loss) ........................................ 0.31 0.34
Net realized and unrealized gain (loss) on investments .............. 5.88 5.35
----------- ------------
Total income (loss) from operations ................................ 6.19 5.69
----------- ------------
Distributions:
Dividends from net investment income ................................ ( 0.26) ( 0.35)
Dividends in excess of net investment income ........................ 0.00 ( 0.01)
Distributions from net realized gains on investments ................ ( 4.09) ( 1.99)
Distributions in excess of net realized gains on investments ........ 0.00 0.00
----------- ------------
Total distributions ................................................ ( 4.35) ( 2.35)
----------- ------------
Net asset value, end of period ........................................ $ 36.84 $ 35.00
=========== ============
Total return (a) ...................................................... 17.54% 17.96%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $ 1,839,453 $ 1,527,409
Ratio of expenses to average net assets (b) ......................... 0.87% 0.88%
Ratio of net investment income (loss) to average net assets (b) ..... 0.80% 0.98%
Average commission rate paid per share .............................. $ 0.0463 $ 0.0493
Portfolio turnover rate (a) ......................................... 85.88% 45.21%
<CAPTION>
GROWTH PORTFOLIO
DECEMBER 31
-------------------------------------------
1995 1994 1993
--------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period .................................. $ 23.81 $ 26.25 $ 25.83
Income from operations:
Net investment income (loss) ........................................ 0.26 0.22 0.28
Net realized and unrealized gain (loss) on investments .............. 10.97 ( 2.41) 0.79
---------- ------- --------
Total income (loss) from operations ................................ 11.23 ( 2.19) 1.07
---------- ------- --------
Distributions:
Dividends from net investment income ................................ ( 0.24) ( 0.22) ( 0.28)
Dividends in excess of net investment income ........................ 0.00 0.00 0.00
Distributions from net realized gains on investments ................ ( 3.14) 0.00 ( 0.37)
Distributions in excess of net realized gains on investments ........ 0.00 ( 0.03) 0.00
----------- ------- ---------
Total distributions ................................................ ( 3.38) ( 0.25) ( 0.65)
----------- ------- ---------
Net asset value, end of period ........................................ $ 31.66 $ 23.81 $ 26.25
=========== ======= =========
Total return (a) ...................................................... 47.12% ( 8.31%) 3.97%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $ 1,195,174 $814,383 $ 934,810
Ratio of expenses to average net assets (b) ......................... 0.86% 0.84% 0.87%
Ratio of net investment income (loss) to average net assets (b) ..... 0.90% 0.88% 1.07%
Average commission rate paid per share .............................. N/A N/A N/A
Portfolio turnover rate (a) ......................................... 130.48% 107.33% 77.91%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL PORTFOLIO
DECEMBER 31
---------------------------
1997 1996
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 18.12 $ 15.52
Income from operations:
Net investment income (loss) ....................................... 0.08 0.08
Net realized and unrealized gain (loss) on investments ............. 3.32 4.20
-------- --------
Total income (loss) from operations ............................... 3.40 4.28
-------- --------
Distributions:
Dividends from net investment income ............................... (0.13) (0.04)
Dividends in excess of net investment income ....................... (1.01) (0.17)
Distributions from net realized gains on investments ............... (1.34) (1.47)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- ---------
Total distributions ............................................... (2.48) ( 1.68)
--------- ---------
Net asset value, end of period ....................................... $ 19.04 $ 18.12
========= =========
Total return (a) ..................................................... 18.75% 27.74%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 785,966 $ 534,820
Ratio of expenses to average net assets (b) ........................ 1.00% 0.99%
Ratio of net investment income (loss) to average net assets (b) .... 0.41% 0.46%
Average commission rate paid per share ............................. $ 0.0123 $ 0.0154
Portfolio turnover rate (a) ........................................ 97.54% 88.31%
<CAPTION>
GLOBAL PORTFOLIO
DECEMBER 31
-------------------------------------
1995 1994 1993
------------ ------------ -----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 13.12 $ 13.62 $ 10.16
Income from operations:
Net investment income (loss) ....................................... 0.10 0.10 0.04
Net realized and unrealized gain (loss) on investments ............. 2.91 0.10 3.72
------- ------- -------
Total income (loss) from operations ............................... 3.01 0.20 3.76
------- ------- -------
Distributions:
Dividends from net investment income ............................... 0.00 (0.10) (0.04)
Dividends in excess of net investment income ....................... 0.00 (0.01) 0.00
Distributions from net realized gains on investments ............... (0.61) (0.56) (0.26)
Distributions in excess of net realized gains on investments ....... 0.00 (0.03) 0.00
-------- -------- -------
Total distributions ............................................... (0.61) (0.70) (0.30)
-------- -------- -------
Net asset value, end of period ....................................... $ 15.52 $ 13.12 $ 13.62
======== ======== =======
Total return (a) ..................................................... 23.06% 0.25% 35.05%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $289,506 $261,778 $99,094
Ratio of expenses to average net assets (b) ........................ 0.99% 1.01% 1.09%
Ratio of net investment income (loss) to average net assets (b) .... 0.75% 0.73% 0.30%
Average commission rate paid per share ............................. N/A N/A N/A
Portfolio turnover rate (a) ........................................ 130.60% 192.06% 79.93%
</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.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
PORTFOLIO (I)
DECEMBER 31
---------------------------
1997 1996
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 13.97 $ 12.86
Income from operations:
Net investment income (loss) ....................................... 0.37 0.37
Net realized and unrealized gain (loss) on investments ............. 2.68 1.56
-------- --------
Total income (loss) from operations ............................... 3.05 1.93
-------- --------
Distributions:
Dividends from net investment income ............................... (0.35) (0.32)
Dividends in excess of net investment income ....................... (0.03) 0.00
Distributions from net realized gains on investments ............... (1.02) (0.50)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- ---------
Total distributions ............................................... (1.40) (0.82)
--------- ---------
Net asset value, end of period ....................................... $ 15.62 $ 13.97
========= =========
Total return (a) ..................................................... 21.85% 15.00%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 526,577 $ 390,141
Ratio of expenses to average net assets (b) ........................ 0.88% 0.91%
Ratio of net investment income (loss) to average net assets (b) .... 2.43% 2.72%
Average commission rate paid per share ............................. $ 0.0596 $ 0.0582
Portfolio turnover rate (a) ........................................ 48.20% 49.32%
<CAPTION>
STRATEGIC TOTAL RETURN PORTFOLIO (I)
DECEMBER 31
----------------------------------------
1995 1994 1993 (C)
------------- -------------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 10.90 $ 11.23 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.37 0.31 0.19
Net realized and unrealized gain (loss) on investments ............. 2.33 (0.33) 1.33
-------- -------- -------
Total income (loss) from operations ............................... 2.70 (0.02) 1.52
-------- -------- -------
Distributions:
Dividends from net investment income ............................... (0.37) (0.31) (0.19)
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (0.37) 0.00 (0.10)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
--------- -------- -------
Total distributions ............................................... (0.74) (0.31) (0.29)
--------- -------- -------
Net asset value, end of period ....................................... $ 12.86 $ 10.90 $ 11.23
========= ======== =======
Total return (a) ..................................................... 24.66% (0.53%) 13.49%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 256,806 $ 183,867 $90,560
Ratio of expenses to average net assets (b) ........................ 0.87% 0.89% 1.00%
Ratio of net investment income (loss) to average net assets (b) .... 3.07% 2.78% 1.70%
Average commission rate paid per share ............................. N/A N/A N/A
Portfolio turnover rate (a) ........................................ 52.59% 53.50% 27.41%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH PORTFOLIO
DECEMBER 31
-----------------------------
1997 1996
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 18.46 $ 16.25
Income from operations:
Net investment income (loss) ....................................... (0.05) (0.04)
Net realized and unrealized gain (loss) on investments ............. 4.03 3.10
--------- ---------
Total income (loss) from operations ............................... 3.98 3.06
--------- ---------
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 ............... (2.07) (0.85)
Distributions in excess of net realized gains on investments ....... 0.00 0.00
--------- ---------
Total distributions ............................................... (2.07) (0.85)
--------- ---------
Net asset value, end of period ....................................... $ 20.37 $ 18.46
========= =========
Total return (a) ..................................................... 21.45% 18.88%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $ 592,003 $ 431,454
Ratio of expenses to average net assets (b) ........................ 0.93% 0.94%
Ratio of net investment income (loss) to average net assets (b) .... (0.27%) (0.24%)
Average commission rate paid per share ............................. $ 0.0582 $ 0.0565
Portfolio turnover rate (a) ........................................ 99.78% 80.02%
<CAPTION>
EMERGING GROWTH PORTFOLIO
DECEMBER 31
-----------------------------------------
1995 1994 1993 (C)
------------ -------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................. $ 11.55 $ 12.47 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.01 0.01 (0.04)
Net realized and unrealized gain (loss) on investments ............. 5.42 (0.92) 2.51
------- -------- --------
Total income (loss) from operations ............................... 5.43 (0.91) 2.47
------- -------- --------
Distributions:
Dividends from net investment income ............................... 0.00 (0.01) 0.00
Dividends in excess of net investment income ....................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............... (0.73) 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- -------- --------
Total distributions ............................................... (0.73) (0.01) 0.00
-------- -------- --------
Net asset value, end of period ....................................... $ 16.25 $ 11.55 $ 12.47
======== ======== ========
Total return (a) ..................................................... 46.79% (7.36%) 24.71%
Ratios and supplemental data:
Net assets at end of period (in thousands) ......................... $288,519 $ 182,650 $ 102,472
Ratio of expenses to average net assets (b) ........................ 0.91% 0.92% 1.00%
Ratio of net investment income (loss) to average net assets (b) .... 0.03% 0.06% (0.30%)
Average commission rate paid per share ............................. N/A N/A N/A
Portfolio turnover rate (a) ........................................ 124.13% 72.62% 12.79%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
95
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
DECEMBER 31
------------------------------------------------------
1997 1996 1995 1994(D)
-------------- -------------- ------------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .................................. $ 14.18 $ 13.25 $ 9.86 $ 10.00
Income from operations:
Net investment income (loss) ........................................ (0.01) (0.01) (0.06) 0.02
Net realized and unrealized gain (loss) on investments .............. 3.44 1.38 3.96 (0.14)
--------- --------- ------- -------
Total income (loss) from operations ................................ 3.43 1.37 3.90 (0.12)
--------- --------- ------- -------
Distributions:
Dividends from net investment income ................................ 0.00 0.00 0.00 (0.02)
Dividends in excess of net investment income ........................ (0.42) (0.19) 0.00 0.00
Distributions from net realized gains on investments ................ (1.15) (0.25) (0.51) 0.00
Distributions in excess of net realized gains on investments ........ 0.00 0.00 0.00 0.00
--------- --------- ------- -------
Total distributions ................................................ (1.57) (0.44) (0.51) (0.02)
--------- --------- ------- -------
Net asset value, end of period ........................................ $ 16.04 $ 14.18 $ 13.25 $ 9.86
========= ========= ======= =======
Total return (a) ...................................................... 24.25% 10.45% 38.02% (1.26%)
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $ 336,166 $ 220,552 $158,534 $38,826
Ratio of expenses to average net assets (b) ......................... 0.96% 0.98% 1.07% 1.00%
Ratio of net investment income (loss) to average net assets (b) ..... (0.06%) (0.10%) (0.48%) (0.20%)
Average commission rate paid per share .............................. $ 0.0710 $ 0.0708 N/A N/A
Portfolio turnover rate (a) ......................................... 136.18% 101.28% 108.04% 89.73%
</TABLE>
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
DECEMBER 31
------------------------------------------------------
1997 1996 1995 1994(d)
-------------- -------------- ------------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .................................. $ 11.39 $ 10.63 $ 9.24 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.38 0.34 0.44 0.34
Net realized and unrealized gain (loss) on investments .............. 1.56 0.80 1.38 (0.76)
------- ------- ------- -------
Total income (loss) from operations ................................ 1.94 1.14 1.82 (0.42)
------- ------- ------- -------
Distributions:
Dividends from net investment income ................................ (0.36) (0.28) (0.43) (0.34)
Dividends in excess of net investment income ........................ (0.30) 0.00 0.00 0.00
Distributions from net realized gains on investments ................ (0.66) (0.10) 0.00 0.00
Distributions in excess of net realized gains on investments ........ 0.00 0.00 0.00 0.00
--------- --------- ------- -------
Total distributions ................................................ (1.32) (0.38) (0.43) (0.34)
--------- --------- ------- -------
Net asset value, end of period ........................................ $ 12.01 $ 11.39 $ 10.63 $ 9.24
========= ========= ======= =======
Total return (a) ...................................................... 17.10% 10.72% 19.80% (5.73%)
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $73,451 $ 49,331 $31,114 $19,422
Ratio of expenses to average net assets (b) ......................... 0.94% 0.97% 0.97% 1.00%
Ratio of net investment income (loss) to average net assets (b) ..... 3.13% 3.14% 4.38% 4.27%
Average commission rate paid per share .............................. $0.0034 $ 0.0024 N/A N/A
Portfolio turnover rate (a) ......................................... 77.06% 76.90% 98.55% 57.73%
</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.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME PORTFOLIO (J)
DECEMBER 31
-----------------------------------------------------
1997 1996 1995 1994(D)
-------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .................................. $ 11.76 $ 11.12 $ 9.30 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.49 0.42 0.46 0.43
Net realized and unrealized gain (loss) on investments .............. 2.35 0.87 1.93 (0.70)
------- ------- ------- -------
Total income (loss) from operations ................................ 2.84 1.29 2.39 (0.27)
------- ------- ------- -------
Distributions:
Dividends from net investment income ................................ (0.43) (0.33) (0.46) (0.43)
Dividends in excess of net investment income ........................ (0.59) 0.00 0.00 0.00
Distributions from net realized gains on investments ................ (1.02) (0.32) (0.11) 0.00
Distributions in excess of net realized gains on investments ........ 0.00 0.00 0.00 0.00
--------- --------- ------- -------
Total distributions ................................................ (2.04) (0.65) (0.57) (0.43)
--------- --------- ------- -------
Net asset value, end of period ........................................ $ 12.56 $11.76 $ 11.12 $ 9.30
========= ========= ======= =======
Total return (a) ...................................................... 24.65% 11.64% 25.25% (4.58%)
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $60,492 $38,115 $24,607 $10,482
Ratio of expenses to average net assets (b) ......................... 0.96% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets (b) ..... 3.84% 3.73% 4.56% 5.36%
Average commission rate paid per share .............................. $0.0469 $0.0433 N/A N/A
Portfolio turnover rate (a) ......................................... 155.77% 68.53% 78.34% 36.13%
</TABLE>
<TABLE>
<CAPTION>
TACTICAL
ASSET ALLOCATION
PORTFOLIO
DECEMBER 31
-----------------------------------------
1997 1996 1995(e)
------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period .................................. $ 12.61 $ 11.49 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.36 0.33 0.41
Net realized and unrealized gain (loss) on investments .............. 1.72 1.33 1.93
-------- -------- --------
Total income (loss) from operations ................................ 2.08 1.66 2.34
-------- -------- --------
Distributions:
Dividends from net investment income ................................ (0.33) (0.30) (0.41)
Dividends in excess of net investment income ........................ (0.19) 0.00 0.00
Distributions from net realized gains on investments ................ (0.56) (0.24) (0.44)
Distributions in excess of net realized gains on investments ........ 0.00 0.00 0.00
--------- --------- ---------
Total distributions ................................................ (1.08) (0.54) (0.85)
--------- --------- ---------
Net asset value, end of period ........................................ $ 13.61 $ 12.61 $ 11.49
========= ========= =========
Total return (a) ...................................................... 16.59% 14.42% 20.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $302,745 $ 206,172 $ 120,531
Ratio of expenses to average net assets (b) ......................... 0.87% 0.90% 0.93%
Ratio of net investment income (loss) to average net assets (b) ..... 2.65% 2.78% 3.76%
Average commission rate paid per share .............................. $ 0.0322 $ 0.0050 N/A
Portfolio turnover rate (a) ......................................... 63.76% 98.97% 38.68%
<CAPTION>
C.A.S.E.
GROWTH PORTFOLIO
DECEMBER 31
-----------------------------------------
1997 1996 1995(f)
-------------- -------------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period .................................. $ 13.42 $ 11.66 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.04 0.12 0.12
Net realized and unrealized gain (loss) on investments .............. 1.95 1.92 2.49
-------- -------- --------
Total income (loss) from operations ................................ 1.99 2.04 2.61
-------- -------- --------
Distributions:
Dividends from net investment income ................................ (0.03) (0.05) (0.12)
Dividends in excess of net investment income ........................ (1.23) 0.00 0.00
Distributions from net realized gains on investments ................ (0.14) (0.23) (0.83)
Distributions in excess of net realized gains on investments ........ 0.00 0.00 0.00
---------- ---------- ---------
Total distributions ................................................ (1.40) (0.28) (0.95)
---------- ---------- ---------
Net asset value, end of period ........................................ $ 14.01 $ 13.42 $ 11.66
========== ========== =========
Total return (a) ...................................................... 15.03% 17.50% 20.65%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $ 60,596 $ 26,560 $ 2,578
Ratio of expenses to average net assets (b) ......................... 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets (b) ..... 0.25% 0.94% 1.02%
Average commission rate paid per share .............................. $ 0.0593 $ 0.0604 N/A
Portfolio turnover rate (a) ......................................... 196.50% 160.27% 121.62%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
97
<PAGE>
WRL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS*
For the year ended
----------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR
PORTFOLIO (K)
DECEMBER 31
-----------------------------
1997 1996(g)
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period .................................. $ 10.55 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.14 0.06
Net realized and unrealized gain (loss) on investments .............. 0.23 0.55
------- -------
Total income (loss) from operations ................................ 0.37 0.61
------- -------
Distributions:
Dividends from net investment income ................................ (0.13) (0.02)
Dividends in excess of net investment income ........................ (0.38) 0.00
Distributions from net realized gains on investments ................ (0.04) (0.04)
Distributions in excess of net realized gains on investments ........ 0.00 0.00
---------- ----------
Total distributions ................................................ (0.55) (0.06)
---------- ----------
Net asset value, end of period ........................................ $ 10.37 $ 10.55
========== ==========
Total return (a) ...................................................... 3.43% 6.08%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $12,721 $ 6,986
Ratio of expenses to average net assets (b) ......................... 1.70% 2.37%
Ratio of net investment income (loss) to average net assets (b) ..... 1.27% 0.62%
Average commission rate paid per share .............................. $0.0475 $ 0.0313
Portfolio turnover rate (a) ......................................... 56.26% 27.58%
<CAPTION>
VALUE EQUITY
PORTFOLIO
DECEMBER 31
----------------------------
1997 1996(g)
------------- --------------
<S> <C> <C>
Net asset value, beginning of period .................................. $ 11.27 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.12 0.10
Net realized and unrealized gain (loss) on investments .............. 2.69 1.23
-------- -------
Total income (loss) from operations ................................ 2.81 1.33
-------- -------
Distributions:
Dividends from net investment income ................................ (0.09) (0.04)
Dividends in excess of net investment income ........................ (0.07) 0.00
Distributions from net realized gains on investments ................ (0.02) (0.02)
Distributions in excess of net realized gains on investments ........ 0.00 0.00
--------- ----------
Total distributions ................................................ (0.18) (0.06)
--------- ----------
Net asset value, end of period ........................................ $ 13.90 $ 11.27
========= ==========
Total return (a) ...................................................... 25.04% 13.19%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $173,435 $49,394
Ratio of expenses to average net assets (b) ......................... 0.89% 1.00%
Ratio of net investment income (loss) to average net assets (b) ..... 0.90% 0.89%
Average commission rate paid per share .............................. $0.0630 $0.0696
Portfolio turnover rate (a) ......................................... 17.28% 7.93%
</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.
FINANCIAL HIGHLIGHTS*
For the period ended
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
EQUITY EQUITY
PORTFOLIO PORTFOLIO
DECEMBER 31 DECEMBER 31
---------------- --------------
1997(h) 1997(h)
---------------- --------------
<S> <C> <C>
Net asset value, beginning of period .................................. $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ........................................ 0.02 0.09
Net realized and unrealized gain (loss) on investments .............. 0.73 2.60
------- -------
Total income (loss) from operations ................................ 0.75 2.69
------- -------
Distributions:
Dividends from net investment income ................................ (0.01) (0.04)
Dividends in excess of net investment income ........................ (0.04) (0.38)
Distributions from net realized gains on investments ................ 0.00 (0.04)
Distributions in excess of net realized gains on investments ........ 0.00 0.00
--------- ---------
Total distributions ................................................ (0.05) (0.46)
--------- ---------
Net asset value, end of period ........................................ $10.70 $ 12.23
========= =========
Total return (a) ...................................................... 7.50% 27.01%
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $19,795 $42,951
Ratio of expenses to average net assets (b) ......................... 1.50% 1.30%
Ratio of net investment income (loss) to average net assets (b) ..... 0.18% 0.75%
Average commission rate paid per share .............................. $0.0351 $0.0364
Portfolio turnover rate (a) ......................................... 54.33% 92.35%
</TABLE>
NOTES TO FINANCIAL HIGHLIGHTS:
* The above table illustrates the change for a share outstanding computed
using average shares outstanding throughout each period. See Notes to
Financial Highlights below and Note 6.
(a) For periods of less than one year the total return and portfolio turnover
are not annualized.
(b) For periods of less than one year the ratio of expenses to average net
assets and the ratio of net investment income to average net assets are
annualized.
(c) The inception 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) Prior to May 1, 1997, this Portfolio was named the Equity-Income Portfolio.
(j) Prior to May 1, 1997, this Portfolio was named the Utility Portfolio.
(k) Prior to March 1, 1997, this Portfolio was named the Meridian/INVESCO
Global Sector Portfolio.
The notes to the financial statements are an integral part of this report.
1 9 9 7 A n n u a l R e p o r t
99
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
All amounts in thousands
--------------------------------------------------------
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 portfolios investment objective.
Effective March 1, 1997, the name of the Meridian/
INVESCO Global Sector Portfolio was changed to the Global Sector Portfolio.
Effective May 1, 1997, the names of the Equity-Income and Utility Portfolios
were changed to the Strategic Total Return and Growth & Income Portfolios,
respectively.
The following is a summary of significant accounting policies followed
consistently by the Fund in accordance with generally accepted accounting
principles.
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 approximates 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
December 31, 1997, are listed in note 5. The variation margin receivable or
payable, as applicable, is included in other assets or
100
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
December 31, 1997
All amounts in thousands
(continued)
--------------------------------------------------------
NOTE 1 -- (CONTINUED)
other liabilities. 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.
F. SECURITIES LENDING
The Fund derives income from its securities lending activities. During the
year ended December 31, 1997, the following amounts of income, net of related
expenses, resulting from securities lending activities are included in interest
income:
<TABLE>
<CAPTION>
PORTFOLIO INCOME
- ---------------------------- -------
<S> <C>
Bond $53
Growth 293
Global 486
Strategic Total Return 137
Emerging Growth 391
Aggressive Growth 74
Balanced 47
Growth & Income 10
Tactical Asset Allocation 58
</TABLE>
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.
Reclassifications between undistributed net investment income ("UNII"),
undistributed net realized capital gains ("UNCG") and additional paid-in
capital accounts are made to reflect income and gains available for
distribution under Federal tax regulations. Net investment income, net realized
gains and net assets were not effected by these reclassifications.
The Portfolios and the amounts of the reclassifications are as follows:
<TABLE>
<CAPTION>
PORTFOLIO UNII UNCG
- ---------------------------- ---------- ------------
<S> <C> <C>
Growth $ (149) $ 149
Global 45,069 (45,069)
Strategic Total Return 2,194 (2,194)
Aggressive Growth 9,312 (9,312)
Balanced 2,336 (2,336)
Growth & Income 4,134 (4,134)
Tactical Asset Allocation 4,800 (4,800)
C.A.S.E. Growth 6,544 (6,544)
Global Sector 458 (458)
Value Equity 973 (973)
International Equity 76 (76)
U.S. Equity 1,833 (1,833)
</TABLE>
In addition, reclassifications were made in the Global and Emerging Growth
Portfolios for $ 1 and $ 1,366, respectively, increasing UNII and decreasing
additional paid-in capital.
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 semi-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.
I. ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles required management to make estimates and
assumptions that effect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
J. EXPENSE OFFSET ARRANGEMENT
Fees paid indirectly, in the accompanying Statement of Operations, represent
reductions in custody expenses in lieu of interest income earned on incidental
uninvested cash balances. Such fees have been added to custody fees to reflect
total Fund expenses.
NOTE 2 -- INVESTMENT ADVISORY
AND TRANSACTIONS WITH
AFFILIATES
WRL Investment Management, Inc. ("WRL Management") is the investment adviser
for the Fund. WRL Invest-
1 9 9 7 A n n u a l R e p o r t
101
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
All amounts in thousands
(continued)
--------------------------------------------------------
NOTE 2 -- (CONTINUED)
ment 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.
<TABLE>
<CAPTION>
PORTFOLIO ADVISORY FEE EXPENSE LIMIT
- ---------------------------- -------------- --------------
<S> <C> <C>
Money Market 0.40% 0.70%
Bond 0.50% 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%
</TABLE>
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 March 1, 1997, the Sub-Advisory Agreement for the Global Sector
Portfolio between WRL Management and INVESCO Global Asset Management Limited
was terminated. This resulted in a change of the advisory fee from 1.10% to
0.70%. Effective June 16, 1997, the Sub-Advisory Agreement for the Global
Sector Portfolio between WRL Management and Meridian Investment Management
Corporation was amended and the advisory fee was changed to 0.80%.
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 year ended December 31, 1997, as follows:
PORTFOLIO COMMISSIONS
- -------------------- ------------
Aggressive Growth $ 750
C. INVESTMENTS IN AFFILIATES
The Fund held the following investments in affiliates at December 31, 1997.
There were no investments in affiliates held at December 31, 1996.
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
-------- ------------ ------------
<S> <C> <C> <C>
Global Portfolio:
Nortel Invesora S.A. ADR 121 $ 3,486 $ 3,086
Emerging Growth Portfolio:
Providian Financial
Corporation 55 2,440 2,485
U.S. Equity Portfolio:
Aegon n.v. ADR 0.22 15 20
Providian Financial
Corporation .003 0.10 0.14
</TABLE>
<TABLE>
<CAPTION>
1997
1997 1997 DIVIDEND
PURCHASES SALES INCOME
----------- ------- -----------
<S> <C> <C> <C>
Global Portfolio:
Nortel Invesora S.A. ADR $ 3,486 $ 0 $ 3.00
Emerging Growth Portfolio:
Providian Financial
Corporation 2,440 0 1.00
U.S. Equity Portfolio:
Aegon n.v. ADR 15 6 0.10
Providian Financial
Corporation 17 13 0.06
</TABLE>
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 Ac-
102
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
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
NOTE 2 -- (CONTINUED)
counts. 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 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, 1997. 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 December 31, 1997, the market value of
invested plan amounts was $ 34. Invested plan amounts are included in other
assets, and the total liability for deferred compensation to the Directors
under the Plan at December 31, 1997 is included in other liabilities 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 December 31, 1997:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 0 $ 113,612 $ 1,359,219 $ 813,645
U.S. Government securities ..................... 1,081,462 350,588 1,223,657 262,256
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 2,998 86,391 1,202,881 655,717
U.S. Government securities ..................... 1,082,404 345,598 1,278,244 256,412
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC EMERGING AGGRESSIVE
TOTAL RETURN GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
For the period ended December 31, 1997:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 200,917 $ 527,234 $ 404,127 $ 49,913
U.S. Government securities ..................... 71,892 8,268,692 1,546 14,227
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 178,687 478,143 360,369 38,630
U.S. Government securities ..................... 38,313 8,352,616 0 7,525
</TABLE>
1 9 9 7 A n n u a l R e p o r t
103
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
NOTE 3 -- (CONTINUED)
<TABLE>
<CAPTION>
GROWTH & TACTICAL ASSET C.A.S.E. GLOBAL
INCOME ALLOCATION GROWTH SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------------- ----------- ----------
<S> <C> <C> <C> <C>
For the period ended December 31, 1997:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 65,887 $ 162,486 $ 105,679 $ 8,923
U.S. Government securities ..................... 7,042 72,765 0 2,165
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 66,781 115,039 74,876 5,100
U.S. Government securities ..................... 0 213,097 0 328
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
PORTFOLIO PORTFOLIO (A) PORTFOLIO (A)
-------------- --------------- --------------
<S> <C> <C> <C>
For the period ended December 31, 1997:
Purchases of securities:
Long-term excluding U.S. Government ............ $ 108,445 $ 24,070 $ 48,172
U.S. Government securities ..................... 26,651 0 844
Proceeds from maturities and sales of securities:
Long-term excluding U.S. Government ............ 16,895 5,480 13,764
U.S. Government securities ..................... 20,000 0 189
</TABLE>
(a) The inception date of this portfolio was January 2, 1997.
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.
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 will elect 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 following fiscal year.
<TABLE>
<CAPTION>
PRIOR YEAR
POST-OCTOBER NET CAPITAL LOSS NET CAPITAL LOSS
LOSSES CARRYFORWARD NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO DEFERRED UTILIZED CARRYFORWARD AVAILABLE THROUGH
- ----------------------------------- -------------- ------------------ ------------------ --------------------------
<S> <C> <C> <C> <C>
Money Market ...................... $ 0 $ 0 $ N/A N/A
Bond .............................. 0 0 (6,182) $ 5,921 December 31, 2002
261 December 31, 2005
Growth ............................ 0 0 0 N/A
Global ............................ 5,182 0 0 N/A
Strategic Total Return ............ 0 0 0 N/A
Emerging Growth ................... 0 0 0 N/A
Aggressive Growth ................. 0 0 0 N/A
Balanced .......................... 0 0 0 N/A
Growth & Income ................... 0 0 0 N/A
Tactical Asset Allocation ......... 0 0 0 N/A
C.A.S.E. Growth ................... 0 0 0 N/A
Global Sector ..................... 9 0 0 N/A
Value Equity ...................... 0 0 0 N/A
International Equity .............. 222 0 (105) December 31, 2005
U.S. Equity ....................... 0 0 0 N/A
</TABLE>
104
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
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
NOTE 4 -- (CONTINUED)
The aggregate cost of investments and composition of unrealized appreciation
and depreciation for Federal income tax purposes as of December 31, 1997 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 ...................... $ 119,047 $ N/A $ N/A $ N/A
Bond .............................. 125,196 2,706 (42) 2,664
Growth ............................ 1,383,845 475,893 (11,603) 464,290
Global ............................ 656,900 142,048 (24,326) 117,722
Strategic Total Return ............ 423,884 105,101 (6,797) 98,304
Emerging Growth ................... 439,279 167,170 (14,476) 152,694
Aggressive Growth ................. 278,171 56,750 (3,206) 53,544
Balanced .......................... 66,064 9,513 (2,510) 7,003
Growth & Income ................... 56,822 4,862 (375) 4,487
Tactical Asset Allocation ......... 274,646 32,641 (5,994) 26,647
C.A.S.E. Growth ................... 57,782 4,615 (5,431) (816)
Global Sector ..................... 12,190 1,055 (1,166) (111)
Value Equity ...................... 151,279 26,467 (3,865) 22,602
International Equity .............. 18,263 1,478 (1,408) 70
U.S. Equity ....................... 36,751 1,889 (926) 963
</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.
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 December 31, 1997 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
German Deutschemark (175) 03/04/98 $ (98) $ (3)
German Deutschemark 10 03/04/98 6 0
German Deutschemark 12 03/04/98 7 0
German Deutschemark (6) 03/04/98 (3) 0
German Deutschemark (8) 03/04/98 (4) 0
German Deutschemark (10) 03/11/98 (6) 0
German Deutschemark 10 03/11/98 6 0
German Deutschemark 9 04/22/98 5 0
German Deutschemark (9) 04/22/98 (5) 0
German Deutschemark (9) 04/22/98 (5) 0
German Deutschemark (14) 04/22/98 (8) 0
German Deutschemark (11) 04/22/98 (6) 0
British Pound Sterling (25,500) 02/25/98 (41,805) (1,602)
British Pound Sterling 1,000 02/25/98 1,639 61
British Pound Sterling 1,200 02/25/98 1,967 55
British Pound Sterling (1,200) 02/25/98 (1,967) (69)
British Pound Sterling (1,000) 03/04/98 (1,639) (59)
British Pound Sterling 1,500 02/25/98 2,459 58
British Pound Sterling 1,200 02/25/98 1,967 73
</TABLE>
1 9 9 7 A n n u a l R e p o r t
105
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
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>
Growth Portfolio
British Pound Sterling (800) 03/04/98 $ (1,311) $ (40)
British Pound Sterling (1,700) 03/04/98 (2,786) (55)
British Pound Sterling (500) 03/11/98 (819) (17)
British Pound Sterling 3,300 02/25/98 5,410 (69)
British Pound Sterling (1,100) 05/06/98 (1,797) 31
British Pound Sterling 1,200 03/04/98 1,967 (55)
British Pound Sterling (2,100) 05/06/98 (3,431) 86
British Pound Sterling (1,500) 05/06/98 (2,451) 37
British Pound Sterling (1,500) 02/25/98 (2,459) (17)
British Pound Sterling 900 05/06/98 1,470 (22)
British Pound Sterling 500 03/11/98 819 (16)
Netherlands Guilder (3,250) 01/12/98 (1,605) 26
Netherlands Guilder 200 01/12/98 99 (1)
Netherlands Guilder (900) 02/25/98 (446) (13)
Netherlands Guilder 200 01/12/98 99 2
Netherlands Guilder (100) 01/12/98 (49) (1)
Netherlands Guilder 210 01/12/98 104 1
Netherlands Guilder 200 01/12/98 99 0
Netherlands Guilder (250) 03/11/98 (124) (3)
Netherlands Guilder 200 01/12/98 99 0
Netherlands Guilder (150) 03/05/98 (74) 0
Netherlands Guilder 150 03/05/98 74 (1)
Netherlands Guilder 150 03/11/98 74 (1)
Netherlands Guilder (100) 01/12/98 (49) 1
Netherlands Guilder (170) 02/25/98 (84) 2
Netherlands Guilder (150) 04/08/98 (74) 2
Netherlands Guilder (200) 03/31/98 (99) 2
Netherlands Guilder 200 01/12/98 99 (3)
Netherlands Guilder 150 04/08/98 74 (2)
Netherlands Guilder 350 01/12/98 173 (6)
Netherlands Guilder (300) 03/31/98 (149) 6
Netherlands Guilder 250 02/25/98 124 (7)
Netherlands Guilder 275 03/31/98 136 (6)
Netherlands Guilder (100) 03/31/98 (50) 2
Netherlands Guilder 150 02/25/98 74 (2)
Netherlands Guilder (100) 03/31/98 (50) 1
Netherlands Guilder 185 03/31/98 92 (2)
Netherlands Guilder 100 03/11/98 50 (1)
Netherlands Guilder 150 03/31/98 74 (2)
Netherlands Guilder 200 02/25/98 99 (2)
Netherlands Guilder (230) 03/31/98 (114) 2
Netherlands Guilder 1,600 01/12/98 790 (13)
Netherlands Guilder 275 01/12/98 135 (2)
Netherlands Guilder 225 03/31/98 112 (2)
Netherlands Guilder 260 02/25/98 129 (1)
Netherlands Guilder 15 01/12/98 7 0
Netherlands Guilder (346) 01/05/98 (171) 2
Netherlands Guilder (101) 01/06/98 (50) 0
Netherlands Guilder 105 02/25/98 52 0
Swedish Krona (28,000) 01/12/98 (3,529) 85
Swedish Krona 28,000 01/12/98 3,529 22
----------
Total Growth Portfolio $ (43,198) $ (1,538)
========== ==========
</TABLE>
106
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
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
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
Belgian Franc (943) 01/15/98 $ (25) $ 0
Swiss Franc 8,500 01/20/98 5,834 (282)
Swiss Franc (10,000) 01/20/98 (6,864) 119
Swiss Franc 2,000 02/18/98 1,377 (67)
Swiss Franc (2,000) 02/18/98 (1,377) (25)
Swiss Franc (5,854) 02/26/98 (4,035) 171
German Deutschemark (571) 01/02/98 (318) 4
German Deutschemark (298) 01/02/98 (166) 2
German Deutschemark (33) 01/05/98 (19) 0
German Deutschemark (5,017) 01/06/98 (2,790) 12
German Deutschemark (19) 01/06/98 (10) 0
German Deutschemark (5,000) 01/15/98 (2,783) 77
German Deutschemark 7,000 02/03/98 3,900 (110)
German Deutschemark 1,000 02/03/98 557 (25)
German Deutschemark (8,000) 02/03/98 (4,457) (7)
German Deutschemark 3,600 02/18/98 2,007 (84)
German Deutschemark (4,500) 02/18/98 (2,509) (81)
German Deutschemark 5,000 02/19/98 2,788 (20)
German Deutschemark 10,000 02/19/98 5,576 (255)
German Deutschemark (15,000) 02/19/98 (8,365) (45)
German Deutschemark 3,500 02/26/98 1,952 (72)
German Deutschemark 5,000 02/26/98 2,789 (121)
German Deutschemark (10,372) 02/26/98 (5,786) (33)
Spanish Peseta (5,177) 01/07/98 (34) 0
Finnish Markka 13,400 02/11/98 2,467 (94)
Finnish Markka (13,400) 02/11/98 (2,467) 44
French Franc (1,433) 01/02/98 (238) 3
French Franc 30,000 01/09/98 4,987 (6)
French Franc 15,000 01/09/98 2,493 (123)
French Franc (45,000) 01/09/98 (7,480) 1
French Franc 206 01/30/98 34 0
French Franc 619 01/30/98 103 0
French Franc (27,094) 01/30/98 (4,510) 21
French Franc (2,278) 01/30/98 (379) 2
French Franc (3,729) 01/30/98 (621) 3
French Franc 85,000 02/03/98 14,151 (695)
French Franc (85,000) 02/03/98 (14,151) (128)
French Franc 40,000 02/18/98 6,665 (315)
French Franc (7,425) 02/18/98 (1,237) (11)
French Franc (32,000) 02/18/98 (5,332) (218)
French Franc (55,000) 02/18/98 (9,164) (182)
British Pound Sterling (6) 01/02/98 (10) 0
British Pound Sterling 27,000 02/11/98 44,293 (628)
British Pound Sterling 7,000 02/11/98 11,483 305
British Pound Sterling (42,000) 02/11/98 (68,900) (1,202)
British Pound Sterling (11,200) 02/11/98 (18,373) 238
British Pound Sterling (4,000) 02/19/98 (6,560) 116
Italian Lira (2,831,142) 01/08/98 (1,600) 9
Japanese Yen 107,059 01/05/98 822 (1)
Japanese Yen 57,401 01/05/98 441 0
</TABLE>
1 9 9 7 A n n u a l R e p o r t
107
<PAGE>
WRL SERIES FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
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
Japanese Yen (1,245,000) 01/20/98 $ (9,584) $ 1,632
Japanese Yen (100,000) 02/18/98 (773) 71
Japanese Yen 1,750,000 03/18/98 13,585 (1,091)
Japanese Yen (3,165,200) 03/18/98 (24,571) 2,825
Japanese Yen (200,000) 03/25/98 (1,554) 142
Japanese Yen (350,000) 03/25/98 (2,720) 8
Japanese Yen (370,000) 04/22/98 (2,888) 35
Japanese Yen (150,000) 04/22/98 (1,171) (2)
Japanese Yen (350,000) 04/22/98 (2,732) 4
Netherlands Guilder 143 01/05/98 71 0
Netherlands Guilder 52 01/06/98 26 0
Netherlands Guilder 429 01/06/98 212 (1)
Netherlands Guilder 20,000 02/03/98 9,889 (451)
Netherlands Guilder (20,000) 02/03/98 (9,889) (12)
Netherlands Guilder (5,000) 02/18/98 (2,474) (81)
Netherlands Guilder 16,000 02/19/98 7,918 (57)
Netherlands Guilder 20,000 02/19/98 9,898 (450)
Netherlands Guilder (49,000) 02/19/98 (24,249) (135)
Swedish Krona 1,480 01/02/98 186 (4)
Swedish Krona 2,061 01/02/98 260 (6)
Swedish Krona 1,129 01/05/98 142 (2)
Swedish Krona 223 01/05/98 28 0
Swedish Krona 1,611 01/07/98 203 (1)
Swedish Krona (30,000) 02/02/98 (3,784) 103
Swedish Krona 60,000 02/11/98 7,569 (467)
Swedish Krona (80,000) 02/11/98 (10,092) 99
South African Rand 1,215 10/02/98 250 16
South African Rand 1,125 10/02/98 233 15
South African Rand (2,340) 10/02/98 (479) (38)
----------- ----------
Total Global Portfolio $ (112,331) $ (1,551)
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- ------------------------------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
International Equity Portfolio
German Deutschemark (544) 01/23/98 $ (303) $ 7
British Pound Sterling 1 01/06/98 1 0
British Pound Sterling 2 01/06/98 3 0
Phillipine Peso (15) 01/05/98 0 0
Phillipine Peso (44) 01/05/98 (1) 0
Swedish Krona 1 01/02/98 0 0
South African Rand (1) 01/06/98 0 0
-------- ---
Total International Equity Portfolio $ (300) $ 7
======== ===
</TABLE>
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
December 31, 1997
All amounts in thousands
(continued)
----------------------------------
NOTE 5 -- (CONTINUED)
The U.S. Equity Portfolio entered into S&P 500 futures and contracts, which
obligate the Fund to settle variation margins in cash daily. Securities with an
aggregate market value of $ 363 have been segregated with the custodian to
cover margin requirements for the following open future contracts at December
31, 1997:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT VALUE IN APPRECIATION
TYPE CONTRACTS DATE U.S. DOLLARS (DEPRECIATION)
- --------------- ----------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
S&P 500 index 17 03/19/98 $ 4,161 $ 19
</TABLE>
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>
DECEMBER 31
--------------------------------------------------------------
PORTFOLIO 1997 1996 1995 1994 1993
- ----------------------------------- ---------- ---------- ---------- ---------- ----------
<S> <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 .............. 3.12% ** ** ** **
U.S. Equity ....................... 1.49% ** ** ** **
</TABLE>
Without the advisory fee waived by WRL and the fees paid indirectly, the
ratio for the period presented would be as follows:
<TABLE>
<CAPTION>
DECEMBER 31
PORTFOLIO 1997
- ----------------------------------- ------------
<S> <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 .............. 3.14%
U.S. Equity ....................... 1.54%
</TABLE>
* No waiver since the portfolio did not exceed expense limitations.
** Portfolio was not in existence during this period.
1 9 9 7 A n n u a l R e p o r t
109
<PAGE>
WRL SERIES FUND, INC.
SUPPLEMENTARY INFORMATION
----------------------------------
Section 270.30d-1 under the Investment Company Act of 1940, as amended,
titled "Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matter put to the vote of the
shareholders and provide final results. In adherence to this amendment, WRL
solicited a vote by the policyholders for:
Approval of a change to a policy of non-industry concentration with respect
to the Growth & Income Portfolio (formerly the Utility Portfolio).
Approval of a new Investment Sub-Advisory Agreement between WRL Investment
Management, Inc. and AEGON USA Investment Management, Inc. with respect to the
Bond Portfolio.
At a special shareholders/policyholders meeting on December 15, 1997, the
results of the proposals were as follows:
<TABLE>
<CAPTION>
PROPOSAL 1
----------------------------
PORTFOLIO FOR AGAINST ABSTAIN
- ------------------------- ----- --------- --------
<S> <C> <C> <C>
Growth & Income 93% 1% 6%
</TABLE>
<TABLE>
<CAPTION>
PROPOSAL 2
----------------------------
PORTFOLIO FOR AGAINST ABSTAIN
- -------------- ----- --------- --------
<S> <C> <C> <C>
Bond 93% 2% 5%
</TABLE>
110
W R L S e r i e s F u n d , I n c .
<PAGE>
This Page Intentionally Left Blank.
1 9 9 7 A n n u a l R e p o r t
111
<PAGE>
This Page Intentionally Left Blank.
112
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
FUND CUSTODIAN:
Investors Bank & Trust Company
200 Clarendon Street
16th Floor
Boston, MA 02116
INVESTMENT ADVISER:
WRL Investment Management, Inc.
201 Highland Avenue
Largo, FL 33770-2957
SUB-ADVISERS:
Janus Capital Corporation
100 Fillmore Street
Denver, CO 80206
Luther King Capital
Management Corporation
301 Commerce Street
Fort Worth, TX 76102
Federated Investment Counseling
Federated Investors Tower
Pittsburgh, PA 15222-3779
NWQ Investment
Management Company, Inc.
2049 Century Park Eask
4th Floor
Los Angeles, CA 90067
Meridian Investment Management
Corporation
12835 East Arapahoe Road
Tower II, Penthouse
Englewood, CO 80112
C.A.S.E. Management, Inc.
2255 Glades Rd.
Suite 221-A
Boca Raton, FL 33431
Scottish Equitable Investment
Management Limited
Edinburgh Park
Edinburgh EH12 95E, Scotland
AEGON USA
Investment Management, Inc.
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52449
Van Kampen American Capital
Asset Management, Inc.
One Parkview Plaza
Oakbrook Terrace, IL 60181
Fred Alger Management, Inc.
75 Maiden Lane
New York, NY 10038
J.P. Morgan Investment
Management Inc.
522 Fifth Avenue
New York, NY 10036
Dean Investment Associates
2480 Kettering Tower
Dayton, OH 45423-2480
GE Investment
Management Incorporated
3003 Summer Street
Stamford, CT 06905
INDEPENDENT ACCOUNTANTS:
Price Waterhouse LLP
1055 Broadway
Kansas City, MO 64105
<PAGE>
THIS MATERIAL IS FOR CONTRACT AND POLICY
HOLDER'S REPORTING PURPOSES ONLY AND SHALL
NOT BE USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES. THIS MATERIAL MUST BE
PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
[GRAPHIC OMITTED]
--------------------------------------------------
Investment Adviser
WRL Investment Management, Inc.
Distributor: InterSecurities, Inc.
201 Highland Avenue /bullet/ Largo, Florida 33770-2597
February 1998
ACC00001 (2/98)
<PAGE>
APPENDIX A
Appendix to Electronic Format
WRL Series Fund, Inc.
Page 1 (Photo) Shown is John R. Kenney, Chairman of the Board
Page 4 (Graph) Pie Chart depicting composition as a percentage of total Money
Market Portfolio net assets.
Short-term U.S. Government Obligations 7.25%
Commercial Paper 46.63%
Short-term Obligations 25.52%
Bank Obligations 20.05%
Other 0.55%
Bar chart depicting maturity composition of the Money Market
Portfolio at December.
Market Value
30 days $13,152,541
30-60 days $37,075,144
60-90 days $29,807,616
90-180 days $16,463,755
180-270 days $12,550,426
270 days to 1 year $9,997,944
more than 1 year $0
Page 6 (Graph) Mountain graph dipicting the change in value of a $10,000
investment in the Bond Portfolio since inception versus the
Lehman Brothers Government/Corporate Bond Index ("LB") over the
same time frame.
Portfolio LB Index
Inception 10/2/86 $10,000 $10,000
FYE 12/31/86 $10,412 $10,310
FYE 12/31/87 $ 9,823 $10,540
FYE 12/31/88 $10,583 $11,340
FYE 12/31/89 $12,133 $12,960
FYE 12/31/90 $12,887 $14,030
FYE 12/31/91 $15,317 $16,290
FYE 12/31/92 $16,358 $17,530
FYE 12/31/93 $18,547 $19,460
FYE 12/31/94 $17,260 $18,780
FYE 123/1/95 $21,228 $22,390
FYE 12/31/96 $21,258 $23,040
FYE 12/31/97 $23,204 $25,290
Page 8 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Growth Portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks ("S&P") over the
same time frame.
Portfolio S&P Index
Inception 10/2/86 $10,000 $10,000
FYE 12/31/86 $10,144 $10,560
FYE 12/31/87 $11,249 $11,110
<PAGE>
FYE 12/31/88 $13,344 $12,940
FYE 12/31/89 $19,621 $17,040
FYE 12/31/90 $19,578 $16,511
FYE 12/31/91 $31,284 $21,542
FYE 12/31/92 $32,021 $23,183
FYE 12/31/93 $33,293 $25,519
FYE 12/31/94 $30,527 $25,856
FYE 12/31/95 $44,912 $35,572
FYE 12/31/96 $52,979 $43,740
FYE 12/31/97 $62,274 $58,333
Page 10 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Global Portfolio since inception versus the
Morgan Stanley Capital International World Index ("MS") over the
same time frame.
Portfolio MS Index
Inception 12/3/92 $10,000 $10,000
FYE 12/31/92 $10,162 $10,008
FYE 12/31/93 $13,724 $12,415
FYE 12/31/94 $13,759 $13,110
FYE 12/31/95 $16,932 $15,900
FYE 12/31/96 $21,628 $18,130
FYE 12/31/97 $25,683 $21,070
Page 12 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Strategic Total Return Portfolio since
inception versus the Standard & Poor's Index of 500 Common
Stocks ("S&P") and Lehman Brothers Government/Corporate
Intermediate Bond Index ("LB") over the same time frame.
Portfolio S&P Index LP Index
Inception 3/1/93 $10,000 $10,000 $10,000
FYE 12/31/93 $11,349 $10,770 $10,490
FYE 12/31/94 $11,288 $10,912 $10,805
FYE 12/31/95 $14,072 $14,996 $12,461
FYE 12/31/96 $16,182 $18,439 $12,966
FYE 12/31/97 $19,718 $24,618 $13,986
<PAGE>
Page 14 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Emerging Growth Portfolio since inception
versus the Standard & Poor's Index of 500 Common Stocks ("S&P")
over the same time frame.
Portfolio S&P Index
Inception 3/1/93 $10,000 $10,000
FYE 12/31/93 $12,471 $10,770
FYE 12/31/94 $11,553 $10,912
FYE 12/31/95 $16,960 $14,996
FYE 12/31/96 $20,162 $18,459
FYE 12/31/97 $24,488 $24,618
Page 16 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Aggressive Portfolio since inception versus
the Value Line (Arithmetic) ("VL") Index and the Standard and
Poor's Index of 500 Common Stocks ("S&P") over the same time
frame.
Portfolio VL Index S&P Index
Inception 3/1/94 $10,000 $10,000 $10,000
FYE 12/31/94 $ 9,874 $ 9,685 $10,072
FYE 12/31/95 $13,628 $12,197 $13,857
FYE 12/31/96 $15,052 $14,609 $17,039
FYE 12/31/97 $18,702 $18,766 $22,724
Page 18 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Balanced Portfolio since inception versus the
Standard and Poor's Index of 500 Common Stocks ("S&P") and the
Lehman Brothers Government/Corporate Intermediate Bond Index
("LB") over the same time frame.
Portfolio S&P Index LB Index
Inception 3/1/94 $10,000 $10,000 $10,000
FYE 12/31/94 $ 9,427 $10,072 $ 9,840
FYE 12/31/95 $11,293 $13,857 $11,348
FYE 12/31/96 $12,504 $17,039 $11,808
FYE 12/31/97 $14,642 $22,724 $12,737
Page 20 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Growth & Income Portfolio since inception
versus the Dow Jones Utilities Average Index ("Dow Util"), the
Standard and Poor's Index of 500 Common Stocks ("S&P")and the
Russell 3000 over the same time frame.
Dow Util Russell 3000
Portfolio Index S&P Index Index
Inception 3/1/94 $10,000 $10,000 $10,000 $10,000
FYE 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
Page 22 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Tactical Asset Allocation Portfolio since
inception versus the Standard and Poor's Index of 500 Common
Stocks ("S&P") and the Lehman Brothers Government/Corporate
Intermediate Bond Index ("LB") over the same time frame.
<PAGE>
Portfolio S&P Index LB Index
Inception 3/1/95 $10,000 $10,000 $10,000
FYE 12/31/95 $12,009 $13,758 $11,533
FYE 12/31/96 $13,741 $16,917 $12,000
FYE 13/31/97 $16,020 $22,560 $12,944
Page 24 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the C.A.S.E. Growth Portfolio since inception
versus the Wilshire 5000 Index ("Wilshire") over the same time
frame.
Portfolio Wilshire Index
Inception 5/1/95 $10,000 $10,000
FYE 12/31/95 $12,065 $12,028
FYE 12/31/96 $14,176 $14,294
FYE 12/31/97 $16,306 $18,464
Page 26 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Global Sector Portfolio since inception
versus the Financial Times World Index ("FT") and the Lehman
Hutton Bond Index ("LH") over the same time frame.
Portfolio FT Index LH Index
Inception 5/1/96 $10,000 $10,000 $10,000
FYE 12/31/96 $10,608 $10,473 $10,811
FYE 12/31/97 $10,972 $11,858 $12,421
Page 28 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the Value Equity Portfolio since inception versus
the Standard & Poor's Index of 500 Common Stocks ("S&P") over
the same time frame.
Portfolio S&P Index
Inception 5/1/96 $10,000 $10,000
FYE 12/31/96 $11,319 $11,500
FYE 12/31/97 $14,153 $15,337
Page 30 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the International Equity Portfolio since inception
versus the Morgan Stanley Capital International ("EAFE") Index
and the Morgan Stanley Capital International World, excluding
U.S. ("World") Index over the same time frame.
Portfolio EAFE Index World Index
Inception 1/2/97 $10,000 $10,000 $10,000
FYE 12/31/97 $10,750 $9,993 $10,018
Page 32 (Graph) Mountain graph depicting the change in value of a $10,000
investment in the U.S. Equity Portfolio since inception versus
the Standard & Poor's ("S&P") Index over the same time frame.
Portfolio S&P Index
Inception 1/2/97 $10,000 $10,000
FYE 12/31/97 $12,701 $13,336
