WRL SERIES FUND, INC.
SEMI-ANNUAL REPORT JUNE 30,1999
August 1999
ACC00001-8/99
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Fellow Contract and Policy Owners:
What goes around...
Encouraged by a thriving U.S. economy, and heartened by others recovering around
the world, financial markets moved higher across this six-month stretch. Indeed,
many of the equity markets favorite indexes reached all-time highs at some point
this period, not the least of which was the Dow Jones Industrial Average
("Dow"). The storied Dow, in fact, closed above 10,000 for the first time ever
in its 100-year history.
For the better part of the period, fortune, as its done for the last few years,
smiled brightly on "growth" stocks, most notably those in the high-flying
technology arena. "Value" stocks, meanwhile, remained, as they've been for the
last few years, almost totally out of favor. As a result, the disparity in
performance between the growth and value styles of investing reached a level
never before seen in the marketplace. But sometime this spring there came a
dramatic shift in market sentiment, and many of those "diamond in the rough"
value issues began to cruise past their growth rivals. Long-shunned sectors like
energy, chemicals, and metals at once displaced fast-growing, mega-size
companies like Microsoft Corporation and America Online, Inc. as the dominant
drivers of the stock market. And, with that, many previously dormant fund
categories rapidly revived providing instant vindication for investors holding a
balanced portfolio.
[PHOTO] Shown is John R. Kenney, Chairman of the Board
John R. Kenney,
Chairman of the Board
We'll be the first to admit the cost of diversification over the last few years
has been unpleasantly steep. Worse yet, we suspect many frustrated investors,
mistakenly believing large U.S. growth stocks were forever to be the stock
markets' stars, abandoned their diversified investment strategies. But the last
couple of months have been a stark reminder that no one is clever enough to
identify the next market leader at the most opportune time. Investing for the
long haul is still all about discipline, determination, and diversification.
In this markedly changeful environment, we're proud of the results the portfolio
managers of the WRL Series Fund, Inc. ("Fund") have produced. All have
vigilantly measured the rhythms of this marketplace and stayed altogether true
to their stated objectives. I invite you to examine their individual comments
contained in this Report. Understanding how these capable professionals dealt
with this complex market can only make it easier for you to stick to your own
investment plan. Make special note, if you will, of the seven new options inside
the Fund. Check with your financial advisor to see if one or more of these new
portfolios, which represent some of Wall Street's finest talent by the way,
would be fitting for your situation.
INVESTING FOR THE LONG HAUL IS STILL ABOUT DISCIPLINE, DETERMINATION, AND
DIVERSIFICATION.
From here, there's no reason to think that globally competitive businesses
should do anything but excel for years to come. Or that long-term investors
should be anything but rewarded for their time in the market. Those in the
marketplace will, of course, need steady nerves and a commitment to stick with
what works. And what works is simply time in the market and a properly allocated
portfolio. We recognize the challenges you face with respect to your investment
plan and appreciate the opportunity to help.
Sincerely yours,
/s/ JOHN R. KENNEY
- --------------------------
John R. Kenney
CHAIRMAN OF THE BOARD
1999 SEMI-ANNUAL REPORT 1
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TABLE OF CONTENTS
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WRL SERIES FUND, INC.
CHAIRMAN'S LETTER .................................................................... 1
PORTFOLIO MANAGER'S COMMENTARY:
WRL J.P. Morgan Money Market (FORMERLY MONEY MARKET PORTFOLIO) ...................... 4
WRL AEGON Bond (FORMERLY BOND PORTFOLIO) ............................................ 6
WRL Janus Growth (FORMERLY GROWTH PORTFOLIO) ........................................ 8
WRL Janus Global (FORMERLY GLOBAL PORTFOLIO) ........................................ 10
WRL LKCM Strategic Total Return (FORMERLY STRATEGIC TOTAL RETURN PORTFOLIO) ......... 12
WRL VKAM Emerging Growth (FORMERLY EMERGING GROWTH PORTFOLIO) ....................... 14
WRL Alger Aggressive Growth (FORMERLY AGGRESSIVE GROWTH PORTFOLIO) .................. 16
WRL AEGON Balanced (FORMERLY BALANCED PORTFOLIO) .................................... 18
WRL Federated Growth & Income (FORMERLY GROWTH & INCOME PORTFOLIO) .................. 20
WRL Dean Asset Allocation (FORMERLY TACTICAL ASSET ALLOCATION PORTFOLIO) ............ 22
WRL C.A.S.E. Growth (FORMERLY C.A.S.E. GROWTH PORTFOLIO) ............................ 24
WRL NWQ Value Equity (FORMERLY VALUE EQUITY PORTFOLIO) .............................. 26
WRL GE/Scottish Equitable International Equity (FORMERLY INTERNATIONAL EQUITY
PORTFOLIO)......................................................................... 28
WRL GE U.S. Equity (FORMERLY U.S. EQUITY PORTFOLIO) ................................. 30
WRL Third Avenue Value (FORMERLY THIRD AVENUE VALUE PORTFOLIO) ...................... 32
WRL J.P. Morgan Real Estate Securities (FORMERLY REAL ESTATE SECURITIES PORTFOLIO) .. 34
WRL Goldman Sachs Growth ............................................................ 36
WRL Goldman Sachs Small Cap ......................................................... 38
WRL T. Rowe Price Dividend Growth ................................................... 40
WRL T. Rowe Price Small Cap ......................................................... 42
WRL Salomon All Cap ................................................................. 44
WRL Pilgrim Baxter Mid Cap Growth ................................................... 46
WRL Dreyfus Mid Cap ................................................................. 48
SCHEDULE OF INVESTMENTS:
WRL J.P. Morgan Money Market ........................................................ 50
WRL AEGON Bond ...................................................................... 52
WRL Janus Growth .................................................................... 54
WRL Janus Global .................................................................... 56
WRL LKCM Strategic Total Return ..................................................... 59
WRL VKAM Emerging Growth ............................................................ 62
WRL Alger Aggressive Growth ......................................................... 65
WRL AEGON Balanced .................................................................. 67
WRL Federated Growth & Income ....................................................... 68
WRL Dean Asset Allocation ........................................................... 70
WRL C.A.S.E. Growth ................................................................. 72
WRL NWQ Value Equity ................................................................ 74
WRL GE/Scottish Equitable International Equity ...................................... 76
WRL GE U.S. Equity .................................................................. 81
WRL Third Avenue Value .............................................................. 84
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2 WRL SERIES FUND, INC.
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TABLE OF CONTENTS (CONTINUED)
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SCHEDULE OF INVESTMENTS: (continued)
WRL J.P. Morgan Real Estate Securities ............................................. 85
WRL Goldman Sachs Growth ........................................................... 86
WRL Goldman Sachs Small Cap ........................................................ 88
WRL T. Rowe Price Dividend Growth .................................................. 95
WRL T. Rowe Price Small Cap ........................................................ 98
WRL Salomon All Cap ................................................................ 103
WRL Pilgrim Baxter Mid Cap Growth .................................................. 106
WRL Dreyfus Mid Cap ................................................................ 108
STATEMENTS OF ASSETS AND LIABILITIES ................................................ 111
STATEMENTS OF OPERATIONS ............................................................ 116
STATEMENTS OF CHANGES IN NET ASSETS ................................................. 121
FINANCIAL HIGHLIGHTS ................................................................ 128
NOTES TO THE FINANCIAL STATEMENTS ................................................... 137
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The Portfolios of the WRL Series Fund, Inc. are made available through
variable life insurance, variable annuity, and group annuity products issued
by Western Reserve Life Assurance Co. of Ohio and certain of its affiliates.
The availability of certain Portfolios may vary from product to product.
1999 SEMI-ANNUAL REPORT 3
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WRL J.P. MORGAN MONEY MARKET
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS MAXIMUM CURRENT INCOME CONSISTENT WITH PRESERVATION OF CAPITAL
AND MAINTENANCE OF LIQUIDITY.
MARKET ENVIRONMENT
The U.S. economy continued to be very strong with growth for the first half of
1999 likely to be in excess of 4%. While at the end of the first quarter, most
market participants believed that the Federal Reserve Board ("Fed") would remain
on hold for at least the next several months, the improving economic outlook led
to higher interest rates on June 30. In a surprise move, however, the Fed
announced a shift back to a neutral bias from a tightening one.
PERFORMANCE
The Portfolio became more barbelled in anticipation of the 25 basis point Fed
tightening. The portfolio's average maturity has been pared down and is
currently maintained at 51 days. we continued to invest in floating rate notes
which reset higher with each Fed tightening move. Throughout the first half of
the year, our holdings in commercial paper and agency securities were increased.
Effective liquidity and duration management were key factors in the Portfolio's
performance during the past six months.
OUTLOOK
The wealth effect from the strong equity market is bolstering consumer
confidence and implying continued solid demand in the U.S. This, combined with
improving domestic manufacturing activity and signs of renewed economic life in
Europe and Asia, leads us to believe that the Fed will continue to raise
interest rates, despite its recent switch to a neutral bias. We Expect that
another 25 basis point upward move by the Fed will most likely occur in August
and more may be needed to slow the economy. Though an increase could happen at
the October meeting, we think it's unlikely that the Fed would move to raise
rates in the fourth quarter, as that would further hamper liquidity at a time
when it may already be a concern due to potential Y2K-related problems. We will
remain short in the Portfolio in light of our expectation of additional Fed
tightenings.
/s/ ROBERT R. JOHNSON
- ---------------------
Robert R. Johnson
WRL J.P. MORGAN MONEY MARKET
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
4 WRL SERIES FUND, INC.
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[J.P. MORGAN INVESTMENT LOGO]
PORTFOLIO COMPOSITION 6/30/99
(INCLUDES 0.10% OF OTHER ASSETS)
Pie chart depicting portfolio composition as a percentage of total portfolio
net assets.
Commercial Paper 33.90%
Short-Term Obligations 27.15%
Certificates of Deposits 14.34%
Short-Term US Government Obligations 24.51%
Bar chart depicting maturity composition of the portfolio at June 30, 1999.
(All amounts in thousands.)
MARKET VALUE
------------
30 days $150,536
31-60 days $21,988
61-90 days $6,999
91-180 days $17,201
181-270 days $30,488
271 days to 1 year $19,996
MATURITY COMPOSITION 6/30/99
(ALL AMOUNTS IN THOUSANDS)
31-60 61-90 91-180 181-270 271-
30 DAYS DAYS DAYS DAYS DAYS 1 YEAR
- --------- ------- ------ ------- ------- ------
$150,536 $21,988 $6,999 $17,201 $30,488 $19,996
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Student Loan Marketing
Association 4.60% 07/01/1999 21.68%
Associates First Capital
Corporation 5.78% 07/01/1999 4.85%
Koch Industries, Inc.-144A 5.52% 07/01/1999 4.85%
Comerica Incorporated 4.90% 03/22/2000 4.04%
Mobil Corporation-144A 4.97% 07/01/1999 3.03%
"EFFECTIVE LIQUIDITY AND DURATION MANAGEMENT WERE KEY FACTORS IN THE PORTFOLIO'S
PERFORMANCE DURING THE PAST SIX MONTHS."
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
Past performance does not guarantee future results. An investment in WRL J.P.
Morgan Money Market is neither insured nor guaranteed by the Federal Deposit
Insurance Corporation or any other government agency and there can be no
assurance that the Portfolio will be able to maintain a stable net asset value
of $1.00 per share.
1999 SEMI-ANNUAL REPORT 5
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WRL AEGON BOND
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS THE HIGHEST POSSIBLE CURRENT INCOME WITHIN THE CONFINES OF THE PRIMARY
GOAL OF ENSURING PROTECTION OF CAPITAL.
MARKET ENVIRONMENT
Interest rates generally trended higher across for the first six months of 1999.
The movement in rates reflected, for the most part, the easing of concerns
related to Latin America, continued strong economic growth, and signs of an
up-tick in inflation. Essentially, the market began to discount its expectations
regarding the Federal Reserve Board ("Fed") action to slow the economy and head
off inflation. Although corporate bond spreads widened modestly during the
period, their relative return versus Treasuries was strong.
PERFORMANCE
WRL AEGON Bond produced a total return of (2.60)% for the six-month period ended
June 30, 1999, slightly lagging its benchmark, the Lehman Brothers
Government/Corporate Bond Index, which decreased to (2.28)%. While performance
for the six months was slightly disappointing, we are pleased with our total
return over the last twelve months.
STRATEGY REVIEW
Our generally neutral duration posture through the period allowed us to largely
avoid the negative relative impact from the rise in interest rates. The
Portfolio was, too, the beneficiary of the incremental yields from allocations
to the spread sectors, including corporate, asset-backed, and mortgage-backed
securities. The contribution to performance was not as strong as it could have
been, however, given our emphasis on higher quality within the sector.
Performance was also enhanced somewhat by security selection, in particular some
of our lower quality financial institution holdings where the relative spread
performance was the most significant (including one security that tightened
dramatically on an acquisition announcement).
At the same time, performance in the yield curve flattening environment was
hindered somewhat by the Portfolio's maturity structure. While we made the right
call, we were not aggressive enough in adjusting the Portfolios maturity
weightings away from the bulleted structure. As it turned out, intermediate
(five to ten years) maturities, where we had the largest relative exposure along
the yield curve, rose most in yield.
OUTLOOK
A strong economy and increased inflationary pressures continue to impact
interest rate expectations. While rates could continue to trend higher in the
near term, we believe the Fed's vigilance on the inflation front is supportive
for the market in the long term. Including several technical factors, we are
neutral to modestly bullish on the bond market. Despite the historically flat
yield curve, the current environment suggests that a more neutral bias for
weighting along the yield curve. We continue to have a relatively large exposure
to intermediate maturities, as the average maturity of the Portfolio remains
shorter than its benchmark, but we will continue to reduce this emphasis in
accordance with our market outlook. Although the Portfolio is broadly
diversified across all dimensions, it continues to have a focus on the corporate
bond sector, with the heaviest exposure to financials. Though there exists a
substantial overweight to single-A rated securities, the average quality of the
Portfolio remains high at AA.
/s/ CLIFFORD A. SHEETS /s/ JARRELL D. FREY
- ---------------------- -------------------
Clifford A. Sheets Jarrell D. Frey
WRL AEGON BOND
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
6 WRL SERIES FUND, INC.
<PAGE>
[AEGON LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL AEGON BOND AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Lehman Brothers Government/Corporate Bond
Index (LB) over the same time frame.
PORTFOLIO LB INDEX
--------- --------
Inception 10/2/86 * $10,000 $10,000
Period Ended 12/31/86 $10,412 $10,310
FYE 12/31/87 $9,823 $10,540
FYE 12/31/88 $10,583 $11,340
FYE 12/31/89 $12,133 $12,960
FYE 12/31/90 $12,887 $14,030
FYE 12/31/91 $15,317 $16,290
FYE 12/31/92 $16,358 $17,530
FYE 12/31/93 $18,547 $19,460
FYE 12/31/94 $17,260 $18,780
FYE 12/31/95 $21,228 $22,390
FYE 12/31/96 $21,258 $23,040
FYE 12/31/97 $23,204 $25,290
FYE 12/31/98 $25,366 $27,685
FPE 06/30/99 $24,707 $27,055
* Inception
o WRL AEGON BOND $24,707
o LB GOV'T CORP.
BOND $27,055
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
U.S. Treasury Bond 6.50% 11/15/2026 6.47%
U.S. Treasury Bond 7.25% 05/15/2016 3.44%
U.S. Treasury Note 6.50% 05/15/2005 3.21%
U.S. Treasury Bond 6.25% 08/15/2023 3.14%
U.S. Treasury Note 5.75% 10/31/2002 3.13%
WHILE RATES COULD CONTINUE TO TREND HIGHER IN THE NEAR TERM, WE BELIEVE THE
FED'S VIGILANCE ON THE INFLATION FRONT IS SUPPORTIVE FOR THE MARKET IN THE LONG
TERM.
FIXED INCOME MATRIX
INTERMEDIATE TERM: Average duration equal to or greater than 3.5 years, but less
than or equal to 6 years.
HIGH QUALITY: Average credit rating equal to or greater than AA.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 7
<PAGE>
WRL JANUS GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS GROWTH OF CAPITAL THROUGH INVESTMENTS IN COMMON STOCKS WITH SUPERIOR
EARNINGS GROWTH POTENTIAL.
MARKET ENVIRONMENT
Despite resurgent interest rate fears and higher volatility, equity markets
finished the period on positive ground. The first half got out of the gates
quickly as the narrow rally of the fourth quarter carried over into the first
quarter. Large caps continued to outperform small- and mid-size companies, and
the Dow Jones Industrial Average reached the 10,000-point level before falling
into a trading range. Despite remarkable economic strength and low unemployment,
inflation remained at its mildest levels in years.
In May, the market changed as the threat of higher interest rates pressured
stocks. Early in the period, investors reacted to healthy economic numbers by
investing heavily in cyclical stocks that stood to benefit from a renewed global
expansion. As the second quarter progressed, concern mounted that the surging
economy would force the Federal Reserve Board ("Fed") to raise interest rates.
Nevertheless, this expectation and the eventual reality the Fed did raise rates
by 25 basis points at the end of June were not enough to suppress the bulls, and
stocks of all capitalizations moved higher.
PERFORMANCE
Against this backdrop, the Portfolio outperformed its benchmark. For the six
months ended June 30, 1999, WRL Janus Growth returned 19.71% while the Standard
and Poors Index of 500 Common Stocks gained 12.38%.
STRATEGY REVIEW
Overall, we enjoyed strong performance from holdings in a diverse mix of
industries, including technology, cable, telecommunications, and retail.
Stand out performers included Nokia Oyj, the wireless communications hardware
manufacturer, and Cisco Systems, Inc., the dominant supplier of Internet
infrastructure equipment.
Despite exhibiting dramatic price oscillations throughout the period, America
Online, Inc. ("AOL"), the world's leading Internet service provider, finished
higher. The company experienced a period of rough sailing as investors came down
with a case of "Internet-valuation-vertigo", and the stock declined. However, we
believe AOL's future remains very bright. It has yet to meaningfully tap into
foreign markets and there is still room to grow in the U.S. market as well.
Meanwhile, Pfizer, Inc. and several other pharmaceutical holdings declined on
fears of potential governmental drug price regulation. Many of these companies,
Pfizer, Inc. in particular, are coming off blockbuster years and they have
extremely difficult earnings comparisons to beat as a result.
OUTLOOK
As we move ahead, volatility and uncertainty should continue in the second half
of the year as the market wrestles with the possibility of additional rate
hikes. If these hikes materialize, then many companies will find the business
environment quite inhospitable and equities could be in for a rough period.
Nevertheless, we remain optimistic on the long-term prospects of our holdings
because each possesses an open-ended, organic growth story that we believe the
market ultimately will reward.
/s/ SCOTT W. SCHOELZEL /s/ ED KEELY
- ---------------------- ------------
Scott W. Schoelzel Edward Keely
WRL JANUS GROWTH
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
8 WRL SERIES FUND, INC.
<PAGE>
[JANUS LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL JANUS GROWTH AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 10/2/86 * $10,000 $10,000
Period Ended 12/31/86 $10,144 $10,560
FYE 12/31/87 $11,249 $11,110
FYE 12/31/88 $13,344 $12,940
FYE 12/31/89 $19,621 $17,040
FYE 12/31/90 $19,578 $16,511
FYE 12/31/91 $31,284 $21,542
FYE 12/31/92 $32,021 $23,183
FYE 12/31/93 $33,293 $25,519
FYE 12/31/94 $30,527 $25,856
FYE 12/31/95 $44,912 $35,572
FYE 12/31/96 $52,979 $43,740
FYE 12/31/97 $62,274 $58,333
FYE 12/31/98 $102,424 $75,004
FPE 06/30/99 $122,613 $84,291
* Inception
o WRL JANUS GROWTH $122,613
o S&P 500 $84,291
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
America Online 7.57%
Microsoft Corporation 7.56%
Nokia Oyj-Sponsored ADR 7.49%
Cisco Systems, Inc. 4.99%
Texas Instruments Incorporated 4.91%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 16.43%
Telecommunications 10.61%
Communications Equipment 8.12%
Computer & Office Equipment 7.02%
Electronic Components & Accessories 5.77%
WE ENJOYED STRONG PERFORMANCE FROM HOLDINGS IN A DIVERSE MIX OF INDUSTRIES,
INCLUDING TECHNOLOGY, CABLE, TELECOMMUNICATIONS, AND RETAIL.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 9
<PAGE>
WRL JANUS GLOBAL
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL IN A MANNER CONSISTENT WITH THE
PRESERVATION OF CAPITAL PRIMARILY THROUGH INVESTMENTS IN COMMON STOCKS OF
FOREIGN AND DOMESTIC ISSUERS.
MARKET ENVIRONMENT
International markets moved cautiously higher during the first six months of
1999. Japan joined the roster of rebounding Asian economies late in the period
by reporting much stronger-than-expected Gross Domestic Product growth. Although
many economists remain skeptical about the report's validity, returning
confidence in Japan helped Asian markets stand out against lackluster
performances in Europe. Latin America also surged late in the period as
confidence crept back into emerging markets following a string of negative news
early in the period. Domestically, continued strength in the U.S. economy proved
to be a mixed blessing during the period, first compelling investors to bid up
large, growth oriented companies and later forcing a shift in favor of
economically sensitive cyclical shares. All shares moved higher, however, when
the Federal Reserve Board ("Fed") announced a modest 25 basis point increase in
short-term rates and adopted a neutral bias toward future rate increases.
PERFORMANCE
The Portfolio performed well behind the strength of a broad range of holdings.
For the six months ended June 30, 1999, WRL Janus Global gained 13.91%,
outdistanding its benchmark, the Morgan Stanley Capital International World
Index, which returned 8.51%.
STRATEGY REVIEW
A number of our U.S. positions participated in the somewhat erratic run-up of
the domestic market. Tyco International Ltd. gained as markets sounded a vote of
confidence in the company's knack for turning underperforming companies into
healthy, dynamic businesses, while Cisco Systems, Inc. gained in tandem with the
explosive growth in the Internet. Overseas, Japanese media concern SOFTBANK
Corporation gained substantially as the company continued to build its
impressive Internet portfolio. Our global telecommunications and cellular
positions also performed well, led by China Telecom (Hong Kong) Limited,
Telefonos de Mexico SA, and Sprint PCS. Finnish cellular handset and equipment
maker Nokia Oyj, also continued to outperform, as did its Swedish peer,
Telefonaktiebolaget LM Ericsson.
Despite generally strong performance, a number of positions gave ground. The
uncertain interest rate environment and the possibility of substantial Medicare
reform in the United States pressured the entire pharmaceutical sector, and our
holdings in Pfizer Inc., Roche Holding AG, and SmithKline Beecham PLC traded
lower. Our performance was also held back by a deliberate lack of exposure to
cyclical shares, a class of investments that gained favor toward the end of the
period as it became increasingly apparent that U.S. interest rates were trending
higher.
OUTLOOK
Looking forward, we were encouraged by the Fed's restraint at its June meeting
but view further rate increases in the U.S. as a possibility. Meanwhile, we are
confident in our positions and look forward to a geographic broadening of the
economic prosperity that has carried the U.S. forward for so long. In addition,
despite a modest underweighting in emerging market shares, we were among the
beneficiaries of the ongoing rebound abroad and will likely allow our exposure
to emerging markets to creep higher in coming months through the careful
addition of well-selected companies.
/s/ HELEN YOUNG HAYES
- ------------------------------
HELEN YOUNG HAYES
WRL JANUS GLOBAL
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
10 WRL SERIES FUND, INC.
<PAGE>
[JANUS LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL JANUS GLOBAL AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
[GRAPHIC OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Morgan Stanley Capital International World
Index (MS) over the same time frame.
PORTFOLIO MS INDEX
--------- --------
Inception 12/3/92 * $10,000 $10,000
Period Ended 12/31/92 $10,162 $10,008
FYE 12/31/93 $13,724 $12,415
FYE 12/31/94 $13,759 $13,110
FYE 12/31/95 $16,932 $15,900
FYE 12/31/96 $21,628 $18,130
FYE 12/31/97 $25,683 $21,070
FYE 12/31/98 $33,392 $26,198
FPE 06/30/99 $38,035 $28,428
* Inception
o WRL JANUS GLOBAL $38,035
o MS INTL. WORLD $28,428
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Cisco Systems, Inc. 5.80%
Tyco International Ltd. 4.57%
Microsoft Corporation 3.58%
Mannesmann AG 3.15%
Nokia Oyj 2.91%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 21.48%
Computer & Data Processing Services 9.16%
Communications Equipment 7.63%
Computer & Office Equipment 6.84%
Pharmaceuticals 6.62%
WE ARE CONFIDENT IN OUR POSITIONS AND LOOK FORWARD TO A GEOGRAPHIC BROADENING OF
THE ECONOMIC PROSPERITY THAT HAS CARRIED THE U.S. FORWARD FOR SO LONG.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
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.
1999 SEMI-ANNUAL REPORT 11
<PAGE>
WRL LKCM STRATEGIC TOTAL RETURN
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS CURRENT INCOME, LONG-TERM GROWTH OF INCOME, AND CAPITAL APPRECIATION BY
INVESTING IN A BLEND OF EQUITY AND FIXED-INCOME SECURITIES.
MARKET ENVIRONMENT
Amidst the strong stock market gains of 1999's first half, the Portfolio's
equity holdings continued to drive overall performance. While the Portfolio's
bond component remains an integral part of managing risk, when bond yields rise,
as they did this period, the resulting pressure on prices dampens total returns.
Nevertheless, our fixed-income allocation and conservative management style
served as a cushion during market downdrafts, as did a sensitivity to valuation
in the stock selection process.
In a sense, the drivers of the strong stock market performance this period, in
the face of rising interest rates, were also the drivers of a greater number of
stocks participating in the market advance. Over the last two quarters, company
earnings have generally exceeded expectations held by investors as we entered
the year. At the same time, the emerging economies, whose problems troubled
global financial markets last year, showed signs of recovery. These factors were
the major forces behind the stock market gains year to date.
PERFORMANCE
For the six months ended June 30, 1999, WRL LKCM Strategic Total Return achieved
a total return of 6.74%. By comparison, the Standard and Poor's Index of 500
Common Stocks gained 12.38% and the Lehman Brothers Government/Corporate
Intermediate Bond Index declined 0.58% for the same period.
STRATEGY REVIEW
The Portfolio enjoyed quite a few successes in the first half of 1999. While our
exposure to various economic sectors is always a key element to performance,
selection of individual investments, rather than "macro" exposures, was the
larger contributor this period. For instance, we continued to have a
lower-than-market exposure to the volatile technology sector, but the strong
performance of our individual technology holdings more than offset the lower
weighting. Though the reward/risk profile of many technology stocks limits our
exposure to computer-related issues, the risk characteristics of
communications-related technology companies have been compelling. Motorola, Inc.
and Nortel Networks Corporation are examples of strong performing
communications-technology holdings in the portfolio. This theme indirectly
extended to other areas such as an investment in the retailer, Tandy
Corporation, whose stock price more than doubled this period. The healthcare
sector, which continued to enjoy strong fundamentals but was mired in fears
about increased government involvement, probably was the largest single adverse
factor effecting the Portfolio over the period.
OUTLOOK
While we continue to be optimistic about the durability of the bull market that
has characterized the 1990s, our more immediate attention is on a rising level
of market risk as we enter the late summer or early fall. After taking the first
step of raising interest rates in June, we would expect the Federal Reserve
Board to raise interest rates again if the economy continues to exhibit signs of
above-average growth in conjunction with upward pressure on wages or prices.
Nevertheless, as we relay these cautions, we are excited about the attractive
investment opportunities we continue to uncover. The current environment, a mix
of optimism, and near-term caution is especially suited for the philosophy of
WRL LKCM Strategic Total Return.
/s/ LUTHER KING /s/ SCOT C. HOLLMANN
- --------------- ---------------------
Luther King Scot C. Hollmann
WRL LKCM STRATEGIC TOTAL RETURN
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
12 WRL SERIES FUND, INC.
<PAGE>
[LKCM LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL LKCM STRATEGIC TOTAL RETURN, THE STANDARD AND POOR'S INDEX OF 500 COMMON
STOCKS AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) and Lehman Brothers Government/Corporate Intermediate Bond Index
(LB) over the same time frame.
PORTFOLIO S&P INDEX LB INDEX
--------- --------- --------
Inception 3/1/93 * $10,000 $10,000 $10,000
Period Ended 12/31/93 $11,349 $10,770 $10,490
FYE 12/31/94 $11,288 $10,912 $10,805
FYE 12/31/95 $14,072 $14,996 $12,461
FYE 12/31/96 $16,182 $18,459 $12,966
FYE 12/31/97 $19,178 $24,618 $13,986
FYE 12/31/98 $21,619 $31,654 $15,167
FPE 06/30/99 $23,076 $35,573 $15,079
* Inception
o WRL LKCM STRATEGIC
TOTAL RETURN $23,076
o S&P 500 $35,573
o LB GOV'T/CORP.
INTM. BOND $15,079
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Altel Corporation 2.54%
Motorola, Inc. 2.32%
CBS Corporation 2.31%
Hewlett-Packard Company 2.28%
Tyco International Ltd. 2.25%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 11.40%
Commercial Banks 7.68%
Pharmaceuticals 6.41%
Chemicals & Allied Products 6.00%
U.S. Government Obligations 5.71%
OUR MORE IMMEDIATE ATTENTION IS ON A RISING LEVEL OF MARKET RISK AS WE ENTER THE
LATE SUMMER OR EARLY FALL.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
FIXED INCOME MATRIX
INTERMEDIATE TERM: Average duration equal to or greater than 3.5 years, but less
than or equal to 6 years.
MEDIUM QUALITY: Average credit rating of BBB or A.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 13
<PAGE>
WRL VKAM EMERGING GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS CAPITAL APPRECIATION BY INVESTING IN THE COMMON STOCKS OF SMALL- AND
MEDIUM-SIZED COMPANIES.
MARKET ENVIRONMENT
As has been its trademark in recent times, the stock market was volatile during
the first six months of the year. With inflation beginning to show signs of
creeping upwards, fears of tighter monetary policy put pressure on the stock
market. Growth stocks in particular were impacted, as investors rotated into
more traditional cyclical issues. The Federal Reserve Board did raise rates on
the last day of the reporting period, but the increase was widely expected and
the effect on stock prices was limited.
PERFORMANCE
WRL VKAM Emerging Growth performed extremely well in this environment. For the
six months ended June 30, 1999, the Portfolio gained 20.92%. By comparison the
Standard and Poor's Index of 500 Common Stocks returned 12.38% and the Russell
2000 Index, which more closely resembles the Portfolio, gained 8.47% for the
same period.
STRATEGY REVIEW
We look for stocks with rising earnings expectations and rising valuations, and
we invest in those companies we believe have the potential to outperform
earnings expectations. Conversely, we sell stocks when earnings estimates or
valuations decline. As the period went on, it became more difficult to identify
stocks that met our investment criteria. As a result, we moved into a handful of
cyclical stocks with high-growth characteristics.
Companies involved in wireless communications were particularly successful
investments for the Portfolio. Leading cellular phone manufacturer Nokia Oyj
continued to be a mainstay of the Portfolio and performed very well during the
period, as did RF Micro Devices, Inc., a component supplier to Nokia Oyj.
Internet companies continued to appreciate in value, although we shifted our
focus from service companies to those firms that are providing the Internets
infrastructure. Cisco Systems, Inc. has been a successful part of the Portfolio
for some time and continued to perform well this period. The Portfolio also was
helped by the performance of Broadcom Corporation and Uniphase Corporation, both
component suppliers to equipment manufacturers involved in building the Internet
information and data "superhighway".
We also found success with a number of our retail holdings especially those that
could capitalize on high consumer-demand for technology. Companies like Tandy
Corporation and Circuit City Stores - Circuit City Group, newly purchased during
the period, and Best Buy Co., Inc., a holding in the Portfolio for some time,
performed very well because they were the beneficiaries of this increased
demand.
OUTLOOK
Concerns about interest rates will make for an interesting summer, and questions
about the Year 2000 problem will be a factor in people's investment decisions,
although to what extent is uncertain. We're also continuing to adjust to a new
"day trading" stock market culture, which has led to a new standard of
volatility. In volatile times our job is somewhat more difficult because it can
be challenging to find stocks that meet our criteria. Through all of these
situations, we continue to do what has worked well for us in the past, which is
invest according to our discipline.
/s/ GARY M. LEWIS
- -----------------
GARY M. LEWIS
WRL VKAM EMERGING GROWTH
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
14 WRL SERIES FUND, INC.
<PAGE>
[VAN KAMPEN INVESTMENTS LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL VKAM EMERGING GROWTH AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 3/1/93 * $10,000 $10,000
FYE 12/31/93 $12,471 $10,770
FYE 12/31/94 $11,553 $10,912
FYE 12/31/95 $16,960 $14,996
FYE 12/31/96 $20,162 $18,459
FYE 12/31/97 $24,488 $24,618
FYE 12/31/98 $33,629 $31,654
FPE 06/30/99 $40,666 $35,573
* Inception
o WRL VKAM
EMERGING GROWTH $40,666
o S&P 500 $35,573
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Best Buy Co., Inc. 3.82%
QUALCOMM, Incorporated 2.28%
Broadcom Corporation 2.27%
Circuit City Stores--Circuit City Group 2.13%
Uniphase Corporation 2.09%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Electronic Components & Accessories 17.04%
Computer & Data Processing Services 12.83%
Communications Equipment 7.44%
Radio, Television & Computer Stores 7.36%
Pharmaceuticals 5.72%
AS THE PERIOD WENT ON, IT BECAME MORE DIFFICULT TO IDENTIFY STOCKS THAT MET OUR
INVESTMENT CRITERIA.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
SMALL CAPITALIZATION: Smallest 80% of the top 5,000 U.S. stocks. This material
3must be preceded or accompanied by the Funds current prospectus.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 15
<PAGE>
WRL ALGER AGGRESSIVE GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING IN EQUITY SECURITIES.
MARKET ENVIRONMENT
After fluctuations amid profit taking, the Dow Jones Industrial Average ("Dow")
finally closed over 10,000 on March 29. The economy, meanwhile, was robust,
interest rates and inflation were at low levels, and we saw the beginnings of a
technological revolution led by the Internet. All of these factors contributed
to a strong quarter for the stock market in general, and for WRL Alger
Aggressive Growth in particular. With our all-cap investment style focusing
primarily on large cap stocks, the portfolio easily outdistanced the broad
averages for the first quarter.
The second quarter also saw the stock market approach new heights, with the Dow
briefly crossing the 11,000 boundary during the period. Internet stocks once
again played a prominent role as they reversed the trend of the first quarter,
posting, in some cases, huge losses. Inflation remained one of the paramount
concerns in the market as the Federal Reserve Board ("Fed") shifted to a
tightening bias at its May meeting. For its part, the economy remained robust,
though there were some signs of slowing. All of these factors contributed to a
challenging quarter for the Portfolio, as small-cap stocks performed better than
their larger-cap peers.
PERFORMANCE
For the six-month period ended June 30, 1999, WRL Alger Aggressive Growth, with
a return of 17.63%, outperformed its benchmarks, the Value Line (Arithmetic)
Index which gained 12.88%, and the Standard and Poor's Index of 500 Common
Stocks, which gained 12.38%.
STRATEGY REVIEW
Technology stocks, specifically those in the Internet arena, were among the
market's stronger performers early in the year and the Portfolio benefited from
large positions in this sector. Among the best performing stocks in the first
quarter were At Home Corporation, America Online, Inc., EMC Corporation, ASM
Lithography Holding NV, and Yahoo! Inc. Together, these stocks accounted for
over 12% of the Portfolio's assets at the end of the first period.
Across the second quarter, however, the poor performance of our Internet-related
holdings and our overweighting of the consumer cyclicals sector resulted in
relatively weak performance. Indeed, many of our previously strong performing
technology holdings gave back some of their gains
OUTLOOK
While the economy still appears to be robust, there are signs of slowing.
Nevertheless, we believe interest rates should be considerably lower by year-end
and the Fed should maintain its neutral bias which, together, could spark a
year-end rally. Beyond that, it appears that the year 2000 will be one of
moderate growth and even lower interest rates. Throughout it all, we will
continue to seek out and invest in companies that we feel will grow their
earnings rapidly and consistently.
/s/ DAVID D. ALGER
- ------------------
DAVID D. ALGER
PRESIDENT, FRED ALGER MANAGEMENT, INC.
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
16 WRL SERIES FUND, INC.
<PAGE>
[FRED ALGER MANAGEMENT, INC. LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL ALGER AGGRESSIVE GROWTH, THE VALUE LINE (ARITHMETIC) INDEX AND THE
STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPHIC OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Value Line (Arithmetic) Index (VL) and the
Standard's and Poor's Index of 500 Common Stocks (S&P) over the same time
frame.
PORTFOLIO VL INDEX S&P INDEX
--------- -------- ---------
Inception 3/1/94 * $10,000 $10,000 $10,000
Period Ended 12/31/94 $9,874 $9,685 $10,072
FYE 12/31/95 $13,628 $12,197 $13,857
FYE 12/31/96 $15,052 $14,609 $17,039
FYE 12/31/97 $18,702 $18,766 $22,724
FYE 12/31/98 $27,807 $19,857 $29,218
FPE 06/30/99 $32,708 $22,415 $32,836
* Inception
o WRL Alger
Aggressive Growth $32,708
o Value Line $22,415
o S&P 500 $32,836
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Microsoft Corporation 4.48%
broadcast.com Inc. 3.99%
America Online, Inc. 3.67%
Cisco Systems, Inc. 3.64%
Citigroup Inc. 3.48%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 13.39%
Telecommunications 10.92%
Electronic Components & Accessories 9.31%
Computer & Office Equipment 8.61%
Communication 7.36%
TECHNOLOGY STOCKS WERE AMONG THE MARKETS' STRONGER PERFORMERS EARLY IN THE YEAR
AND THE PORTFOLIO BENEFITED FROM LARGE POSITIONS IN THIS SECTOR.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 17
<PAGE>
WRL AEGON BALANCED
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS PRESERVATION OF CAPITAL, REDUCED VOLATILITY, AND SUPERIOR LONG-TERM
RISK-ADJUSTED RETURNS BY INVESTING IN COMMON STOCK, CONVERTIBLE SECURITIES, AND
U.S. TREASURIES.
MARKET ENVIRONMENT
In the early part of the second quarter, the market experienced what is known as
a rotation. Until then, the market had been dominated by large-cap growth
stocks. Since September 1998, the trend actually accelerated as the Federal
Reserve Board ("Fed") both lowered interest rates and increased the growth of
money supply, providing liquidity to flow back into the market. The Fed's
actions reinvigorated the equity market to the point of frenzy, as evidenced by
the Internet craze during the first quarter.
We viewed the move to cyclicals as a normal market reaction to the extreme
valuation spread. It was a reversion to the mean for valuations, but we don't
think it should have happened in such a short period of time. The huge upward
move, in our opinion, was a panic reaction by fund managers who had little
exposure to cyclicals. To continue to outperform, we believe cyclicals need to
report positive news and show quarter-to-quarter earnings growth, something that
in the past has been very difficult for the group to do.
PERFORMANCE
For the six months ended June 30, 1999, WRL AEGON Balanced produced a total
return of 6.56%. By comparison, the Standard and Poor's Index of 500 Common
Stocks ("S&P 500") gained 12.38% and the Lehman Brothers Government/Corporate
Intermediate Bond Index declined 0.58%.
STRATEGY REVIEW
The highlight this year for the Portfolio has been the stock selection. Of the
twenty three stocks remaining in the Portfolio at the end of the second quarter,
nine outperformed the S&P 500 year-to-date. Notable performers included Frontier
Corporation, Sun Microsystems, Inc., Hewlett-Packard Company, Citigroup Inc.,
and J.P. Morgan & Co. Incorporated. One important addition to the Portfolio this
period was Tyco International Ltd.
We have to remember, of course, this is a balanced portfolio. The fixed-income
market was not kind to our performance as yields rose, meaning bond prices fell.
For its part, the yield on the 30-year U.S. Treasury bond rose from 5.09% to
5.96% this period. At quarter end, about 25% of the Portfolio was in varying
durations of U.S. Treasuries. For the first six months of 1999, this part of the
Portfolio was down approximately 7%. Clearly this was a disappointment, but we
believe that most of the decline in bond prices is over.
OUTLOOK
WRL AEGON Balanced has shied away from classic cyclicals like basic materials.
We believe, instead, in cyclicals with good fundamentals, like financials,
capital goods and retailing. These groups have more control over their destiny
and generate positive returns on capital. They also have the ability to sustain
profitability even in an economic downturn. If we begin to see signs of a global
economic recovery, we may move into some "deep" cyclicals, but at this time we
feel the Portfolio has an appropriate amount of exposure to the group.
/s/ MICHAEL VAN METER
- ---------------------
MICHAEL VAN METER
WRL AEGON BALANCED
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
18 WRL SERIES FUND, INC.
<PAGE>
[AEGON LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL AEGON BALANCED, THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS AND THE
LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard's and Poor's Index of 500 Common
Stocks (S&P) and the Lehman Brothers Government/Corporate Intermediate Bond
Index (LB) over the same time frame.
PORTFOLIO S&P INDEX LB INDEX
--------- --------- --------
Inception 3/1/94 * $10,000 $10,000 $10,000
Period Ended 12/31/94 $9,427 $10,072 $9,840
FYE 12/31/95 $11,293 $13,857 $11,348
FYE 12/31/96 $12,504 $17,039 $11,808
FYE 12/31/97 $14,642 $22,724 $12,737
FYE 12/31/98 $15,657 $29,218 $13,812
FPE 06/30/99 $16,683 $32,836 $13,732
* Inception
o WRL AEGON
Balanced $16,683
o S&P 500 $32,836
o LB Gov't./Corp.
Intm. Bond $13,732
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
U.S. Treasury Bond 5.25% 11/15/2028 3.93%
Sun Microsystems, Inc. 3.67%
Frontier Corporation 3.62%
Tyco International Ltd. 3.45%
PepsiCo, Inc. 3.42%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
U.S. Government Obligations 25.65%
Pharmaceuticals 8.96%
Commercial Banks 8.80%
Computer & Office Equipment 6.80%
Insurance 6.75%
THE FIXED-INCOME MARKET WAS NOT KIND TO OUR PERFORMANCE AS YIELDS ROSE, MEANING
BOND PRICES FELL.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
FIXED INCOME MATRIX
LONG TERM: Average duration of more than 6 years.
HIGH QUALITY: Average credit rating equal to or greater than AA.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 19
<PAGE>
WRL FEDERATED GROWTH & INCOME
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS TOTAL RETURN BY INVESTING IN SECURITIES THAT HAVE DEFENSIVE
CHARACTERISTICS.
MARKET ENVIRONMENT
Conditions in the stock market shifted abruptly this period, from a focus on
large capitalization growth stocks the first quarter to one on value stocks and
smaller capitalization stocks the second. This transition is apparent in the
quarterly returns of the Portfolio--a minus 7.99% in the first quarter but a
positive 12.15% in the second. Our strong second quarter performance was
enhanced by the real estate investment trust ("REIT") and electric and gas
utility sectors.
PERFORMANCE
For the six-months ended June 30, 1999, WRL Federated Growth & Income gained
3.19%, while the Russell 3000 Index, our market benchmark, returned 10.80%.
The Russell Mid Cap Value Index returned 7.72%. This index is a fairer
comparison for the value-oriented, defensive nature of the Portfolio.
STRATEGY REVIEW
In accordance with our emphasis towards mid-cap value, we have increased the
diversification of the Portfolio at the expense of utilities. We are confident
this move will enhance returns without impairing the Portfolio's fine defensive
characteristics. Utilities overall are now approximately 38% of the Portfolio,
down from a high of 50% last year. Meanwhile, several of our new holdings were
strong performers during the period, including DENTSPLY International Inc.
(dental supplies), Westvaco Corporation (forest products), and Flowserve
Corporation (capital goods).
Among individual stocks, our top contributor was Kerr-McGee Corporation, which
rode surging oil prices to a solid return. Equity Residential Properties Trust
and Apartment Investment and Management Company led the strong REIT sector. In
contrast, K N Energy, Inc.'s convertible preferred shares were the Portfolio's
weakest, declining on lower earnings and the termination of the company's
planned merger with Sempra Energy.
With the exception of the highly volatile technology sector, all major industry
sectors are now represented in WRL Federated Growth & Income. Natural gas,
REITs, electric utilities, consumer staples, and basic industry are the
Portfolio's largest sectors.
OUTLOOK
We are optimistic about the Portfolio's prospects. On average, valuations appear
excellent, the dividend yield exceeds 4.5%, and average earnings growth of our
companies is 9%. These mid-cap companies also offer takeover prospects given
their moderate size, attractive valuations, and strong cash flows. After the
sharp rise by the large growth stocks over the last few years and because of the
likelihood that market conditions will be more challenging, we think WRL
Federated Growth & Income is a fine place to be positioned.
/s/ STEVEN J. LEHMAN /s/ LINDA A. DUESSEL
- -------------------- --------------------
Steven J. Lehman Linda A. Duessel
WRL FEDERATED GROWTH & INCOME
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
20 WRL SERIES FUND, INC.
<PAGE>
[FEDERATED LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL FEDERATED GROWTH & INCOME AND THE RUSSELL 3000 INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Dow Jones Utilities Average Index (Dow
Util) and the Russell 3000 Index over the same time frame.
RUSSELL
PORTFOLIO 3000 INDEX
--------- ----------
Inception 3/1/94 * $10,000 $10,000
Period Ended 12/31/94 $9,542 $9,872
FYE 12/31/95 $11,952 $13,068
FYE 12/31/96 $13,343 $15,575
FYE 12/31/97 $16,631 $20,165
FYE 12/31/98 $17,139 $24,667
FPE 06/30/99 $17,686 $27,330
* Inception
o WRL Federated
Growth & Income $17,686
o Russell 3000 $27,330
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge. For variable universal life insurance, please refer to the
hypothetical illustrations in the prospectus, which show the effect on
performance of all charges that may apply to a policy. You may wish to obtain a
personalized illustration, which reflects all the charges that apply to a
policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
KeySpan Corporation 2.31%
Pennzoil-Quaker State Corporation 2.19%
New Jersey Resources Company 2.04%
General Mills, Inc. 2.02%
Gables Residential Trust 1.99%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Gas Production & Distribution 17.59%
Holding & Other Investment Offices 12.72%
Electric Services 10.09%
Electric, Gas & Sanitary Services 5.90%
Real Estate 5.69%
IN ACCORDANCE WITH OUR EMPHASIS TOWARDS MID-CAP VALUE, WE HAVE INCREASED THE
DIVERSIFICATION OF THE PORTFOLIO AT THE EXPENSE OF UTILITIES.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 21
<PAGE>
WRL DEAN ASSET ALLOCATION
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS PRESERVATION OF CAPITAL AND COMPETITIVE RETURNS BY INVESTING IN STOCKS,
DEBT OBLIGATIONS OF U.S. ISSUERS, U.S. TREASURY SECURITIES, AND MONEY MARKETS.
MARKET ENVIRONMENT
Stocks continued to rally in the first part of 1999, with most of the major
indexes advancing into record territory. This bullish optimism has been fueled
by the robust economy, solid corporate earnings, and benign inflation. In
December we noted the market's lack of "breadth"--that a relatively few
large-cap growth stocks were driving overall returns while the median stock in
the market had produced relatively mediocre gains. This same type of environment
persisted in the first quarter, further widening the valuation between "value"
and "growth" to disproportionate levels. In April, the market began to broaden
out, with several previously ignored segments such as cyclicals and small- and
midcaps performing relatively well. Our research suggests that this recent shift
to value has historical precedent, and that the relatively stronger returns have
a probability of lasting for an extended period of several years.
PERFORMANCE
For the six months ended June 30, 1999, the Portfolio produced a total return of
1.34%. By comparison, the Standard and Poor's Index of 500 Common Stocks gained
12.38% while the Lehman Brothers Government/Corporate Intermediate Bond Index
declined 0.58%.
STRATEGY REVIEW
Our research has uncovered a number of companies with solid management teams,
robust operating fundamentals, and leading positions in growing markets.
Disappointingly, the share prices of these companies have stagnated in this
market environment. Our conviction is that the underlying sales and earnings
growth will eventually be reflected in the prices of these stocks. At the same
time, we utilize our models to determine the inherent risks in the overall
market and the appropriate mix of stocks and bonds given the risk profile of our
customer base. The current forecasts are indicating a difficult/risky market in
the near term, with a probability of continued volatility, while affirming the
longer-term potential of investing in equities. Accordingly, equity allocation
was trimmed during the period, and as of June 30, the Portfolio was 53.5%
invested in stocks, compared to a 60 % "neutral" allocation. In the fixed-income
portion of the Portfolio, we are positioning the investments to pick up
additional yield and capitalize on the recent difficulties in the bond market.
We continue to emphasize investment themes that will reduce the Portfolio's risk
profile. For example, the Portfolio's average market capitalization has steadily
increased over the past year. Additionally, given the recessionary conditions in
several overseas markets and the wide currency fluctuations that have hampered
the results of many multi-nationals, we have reduced our international exposure
and emphasized firms with a domestic business profile. Finally, we maintain a
healthy commitment to income-producing "defensive" stocks, such as electric
utilities and real estate investment trusts.
OUTLOOK
Our stock selection process and asset allocation models have provided long-term
investors with relatively stable returns that have been competitive with the
market indexes. Going forward, we expect our approach to continue to reward
investors, while providing downside protection in times of market instability.
/s/ ARVIND SACHDEVA /s/ JOHN C. RIAZZI
- ------------------- ------------------
Arvind Sachdeva John C. Riazzi
WRL DEAN ASSET ALLOCATION
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
22 WRL SERIES FUND, INC.
<PAGE>
[DEAN INVESTMENT ASSOCIATES LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL DEAN ASSET ALLOCATION, THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS,
AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
[GRAPHIC OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard's and Poor's Index of 500 Common
Stocks( S&P) and the Lehman Brothers Government/Corporate Intermediate Bond
Index (LB) over the same time frame.
PORTFOLIO S&P INDEX LB INDEX
--------- --------- --------
Inception 1/3/95 * $10,000 $10,000 $10,000
Period Ended 12/31/95 $12,009 $13,758 $11,533
FYE 12/31/96 $13,741 $16,917 $12,000
FYE 12/31/97 $16,020 $22,560 $12,944
FYE 12/31/98 $17,354 $29,008 $14,037
FPE 06/30/99 $17,586 $32,599 $13,956
* Inception
o WRL Dean Asset
Allocation $17,586
o S&P 500 $32,599
o LB Gov't./Corp.
Intm. Bond $13,956
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
AT&T Corp. 3.26%
U.S. Treasury Note 6.50% 05/15/2005 3.00%
Philip Morris Companies Inc. 2.93%
U.S. Treasury Note 5.88% 02/15/2004 2.93%
Fannie Mae 6.97% 09/04/2007 2.89%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Insurance 10.16%
Finance 9.99%
U.S. Government Obligations 8.82%
Electric Services 5.74%
U.S. Government Agency Obligations 5.13%
THE CURRENT FORECASTS ARE INDICATING A DIFFICULT/RISKY MARKET IN THE NEAR TERM,
WHILE AFFIRMING THE LONGER-TERM POTENTIAL OF INVESTING IN EQUITIES.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
FIXED INCOME MATRIX
SHORT TERM: Average duration of 3.5 years.
HIGH QUALITY: Average credit rating equal to or greater than AA.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 23
<PAGE>
WRL C.A.S.E. GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS ANNUAL GROWTH OF CAPITAL THROUGH INVESTMENTS IN COMPANIES WHOSE
MANAGEMENT, FINANCIAL RESOURCES AND FUNDAMENTALS APPEAR ATTRACTIVE ON A SCALE
MEASURED AGAINST EACH COMPANY'S PRESENT VALUE.
MARKET ENVIRONMENT
Late in the period, the ever-vigilant Federal Reserve Board ("Fed") raised
interest rates. This move came as a result of concerns over inflation, the
global economic recovery, strong U.S. growth, higher commodity pricing, and
rising earnings expectations. Indeed, after a year of deceleration, earnings are
on the move again. Manufacturing, globalization, and productivity gains are the
principal reasons that inflation is low during this period of economic growth.
We have believed that many of our nation's blue-chip stocks were overvalued,
their growth rates were slowing, and they were losing their dominance over the
broad market. With that in mind, the great majority of the Portfolio's assets
were invested in large cap stocks, with above-average growth rates and below
market valuations. This combination was apparently the right formula for the
market this period.
PERFORMANCE
For the six months ended June 30, 1999, WRL C.A.S.E. Growth produced a total
return of 26.33%, comparing very favorably to the Wilshire 5000 Index which
gained 11.19% over the same period.
STRATEGY REVIEW
During the period, we increased both the number of corporate turnaround
investments in the Portfolio and the number of stocks less sensitive to interest
rate hikes. Fortunately, the market seems to be broadening its appetite,
searching for similar investments. These factors should bode well for the future
price potential of the Portfolio. We look to the Fed to raise interest rates an
additional 25-50 basis points over the next six months. During this upcoming
period, we intend to closely monitor our investments and eliminate any stocks
that appear overpriced based upon their underlying fundamentals. We think
maintaining a proper sell discipline is as important as maintaining a good buy
discipline.
OUTLOOK
As a core manager, we try to blend the advantages of both "value" and "growth"
investing. We do this because value stocks are known to offer a measure of
downside protection often missing from the high-growth-rate, high-priced style
of investing. We feel investment returns should be viewed in the context of the
amount of market risk that is incurred in the process of achieving such returns.
The Portfolio is currently selling at earnings and book value multiples
measurably less than those of the Standard and Poor's Index of 500 Common
Stocks. On the growth rate side of the equation, the Portfolio's average profit
margin and earnings growth rate are higher as well. All together, we believe the
stocks in the Portfolio not only represent faster-growing companies, but they
are selling at a discount to the broad market.
/s/ WILLIAM E. LANGE
- --------------------
William E. Lange
PRESIDENT & CHIEF EXECUTIVE OFFICER
C.A.S.E. MANAGEMENT, INC.
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
24 WRL SERIES FUND, INC.
<PAGE>
[C.A.S.E. GROWTH LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL C.A.S.E. GROWTH AND THE WILSHIRE 5000 INDEX
[GRAPHIC OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Wilshire 5000 Index (Wilshire) over the
same time frame.
PORTFOLIO WILSHIRE INDEX
--------- --------------
Inception 5/1/95 * $10,000 $10,000
Period Ended 12/31/95 $12,065 $12,028
FYE 12/31/96 $14,176 $14,294
FYE 12/31/97 $16,306 $18,464
FYE 12/31/98 $16,709 $22,474
FPE 06/30/99 $21,108 $24,988
* Inception
o WRL C.A.S.E
Growth $21,108
o Wilshire 5000 $24,988
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Genesco Inc. 7.01%
CIENA Corporation 5.07%
Jones Apparel Group, Inc. 4.33%
Claire's Stores, Inc. 4.16%
Nortel Networks Corporation 4.12%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 12.31%
Communications Equipment 11.34%
Computer & Data Processing Services 8.35%
Apparel Products 7.99%
Shoe Stores 7.01%
THE GREAT MAJORITY OF THE PORTFOLIO'S ASSETS WERE INVESTED IN LARGE CAP STOCKS,
WITH ABOVE-AVERAGE GROWTH RATES AND BELOW MARKET VALUATIONS.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 25
<PAGE>
WRL NWQ VALUE EQUITY
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS TO ACHIEVE MAXIMUM, CONSISTENT TOTAL RETURN WITH MINIMUM RISK TO
PRINCIPAL BY INVESTING IN COMMON STOCKS WITH ABOVE-AVERAGE STATISTICAL VALUE.
MARKET ENVIRONMENT
Starting in February and March, an increasing number of indications appeared
that the crisis and economic chaos affecting much of the rest of the world was
receding. While the U.S. stock market continued its record setting ways, the
improved world outlook led to a broadening of individual performance. Along with
value-oriented issues, mid- and small-capitalization stocks significantly
outperformed for the first time in several years.
PERFORMANCE
In this environment, the Portfolio performed well, outperforming, in fact, the
Standard and Poor's Index of 500 Common Stocks ("S&P 500") across the second
quarter. The number of takeover bids--four--received so far this year seems to
confirm the level of undervaluation for many of our holdings. For the full six
months ended June 30, 1999, WRL NWQ Value Equity returned 18.47%. The S&P 500,
by comparison, gained 12.38% for the same period.
STRATEGY REVIEW
While the Asian crisis in 1998 derailed our long held export-oriented investment
theme, we had been moving towards a concentration of industrial and capital
goods stocks for more than two years. Our position in Caterpillar Tractor, at
one time one of the Portfolio's largest holdings, is gone, and in its place are
major investments in banking and insurance. We've also added consumer stocks,
airlines, cable television, and technology to our holdings. At the same time, we
held our positions in energy and energy service companies despite the industry
falling very much out of favor in 1998. We believed very strongly in the
investment potential for the industry despite falling oil prices. The dramatic
recovery this period of Weatherford International, Inc. and Halliburton Company,
our two largest energy holdings, gave performance results a strong lift. We
believe superior performance comes from early identification of changes in
fundamentals as well as a conviction to those investments during a difficult
environment.
OUTLOOK
Predicting the future course of the stock market, especially over a short
period, is always a hazardous undertaking. Still, the market's movements in the
second quarter represent a significant shift. With the threat of worldwide
recession fading, the implications for the entire universe of value stocks are
quite positive. We view the recent change in market sentiment towards value as
the first step in the long overdue process of rationalizing extreme market
valuations. The Internet is, to be sure, growing more rapidly than anything we
have seen in many years, but is a company like America Online, Inc. really worth
more than the entire domestic airline, aluminum, and paper industries combined?
In our view the answer is a simple no. The fact is, investor fears generated by
the Asian flu, coupled with the euphoria of internet investing, created a stock
market in 1998 that carried the largest valuation discrepancies in over thirty
years. The past three months have witnessed some unwinding of this situation,
but there is still a long way to go. As long as monetary authorities do not get
so afraid of a strong economy they blunder into significant rate hikes, the
return of value, and of more rational pricing in the stock market, appears to be
in the first inning.
/s/ EDWARD C. FRIEDEL
- ---------------------
EDWARD C. FRIEDEL
WRL NWQ VALUE EQUITY
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
26 WRL Series Fund, Inc.
<PAGE>
[NWQ VALUE EQUITY LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL NWQ VALUE EQUITY AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 5/1/96 * $10,000 $10,000
Period Ended 12/31/96 $11,319 $11,500
FYE 12/31/97 $14,153 $15,337
FYE 12/31/98 $13,477 $19,720
FPE 06/30/99 $15,966 $22,162
* Inception
o WRL NWQ
Value Equity $15,966
o S&P 500 $22,163
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Texas Instruments Incorporated 5.13%
Philip Morris companies Inc. 4.20%
MediaOne Group, Inc. 3.89%
Loews Corporation 3.52%
Halliburton Company 3.48%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Commercial Banks 14.65%
Insurance 9.73%
Industrial Machinery & Equipment 8.00%
Telecommunications 6.88%
Electronic Components & Accessories 5.13%
WE VIEW THE RECENT CHANGE IN MARKET SENTIMENT TOWARDS VALUE AS THE FIRST STEP IN
THE LONG OVERDUE PROCESS OF RATIONALIZING EXTREME MARKET VALUATIONS.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 27
<PAGE>
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN THE COMMON STOCK
OF FOREIGN ISSUERS TRADED ON OVERSEAS EXCHANGES.
MARKET ENVIRONMENT
While global growth has been positive this period, overall performance hides
significant variations from region to region. Asia has been the economic success
story of the first half of 1999, a reverse of the previous six months. Investors
returned to Japan as the government began bank restructuring and more Japanese
companies announced their own restructuring plans. Investment money also began
to flow back into other Asian markets, which are restructuring their economies,
too. Market indexes are up sharply for Korea, Thailand and Indonesia. In
contrast, Europe's economic indicators, although positive, were weak in the
first half of 1999, reflecting the disappointing performance of the Euro.
PERFORMANCE
For the six months ended June 30, 1999, the Portfolio produced a total return of
1.03%. By comparison, the Morgan Stanley Capital International (EAFE) Index
gained 5.97% and the Morgan Stanley Capital International World (excl. United
States) Index rose 6.22%.
STRATEGY REVIEW
GE INVESTMENT MANAGEMENT INCORPORATED: Technology and oil companies were among
our top performers this period, with Taiwan Semiconductor Manufacturing Company
Ltd., the performance leader. Also turning in strong results were Mannesmann AG
of Germany in telecommunications, and Invensys PLC, a process control company
from the United Kingdom ("UK"). Many European financial companies in the
Portfolio took a beating during the first half, reflecting the region's weak
currency and anemic economic performance.
SCOTTISH EQUITABLE INVESTMENT MANAGEMENT LIMITED: In mainland Europe, our
technology stocks did well, as did most cyclicals. Interest rate-sensitive
stocks, on the other hand, performed poorly, with insurance and utility stocks
vying for bottom place in the performance tables. Defensive sectors such as
media and food did not perform much better. During June, we sharply reduced our
holdings in continental Europe, redeploying the funds into Asian markets which
we believe offer greater gearing into the Asian recovery, most notably that of
Singapore. UK stocks within the Portfolio have lagged the market of late,
primarily due to our underweighting of the manufacturing sector, which saw a
bounce as expectations for global growth improved.
OUTLOOK
GE INVESTMENT MANAGEMENT INCORPORATED: Although we remain cautious about
investments in Japan, we are actively seeking out more opportunities among
companies that show potential and fit our valuation discipline. We also are
searching out sound investments in Asia. We continue to have faith in European
stocks, believing the sector is taking a breather and will return to
profitability over the long term.
SCOTTISH EQUITABLE INVESTMENT MANAGEMENT LIMITED: We remain uncertain regarding
the prospects for UK manufacturing, given negligible pricing power and the
existence of excess capacity in many industries. We prefer UK domestic consumer
cyclical sectors such as brewing, leisure and media. Summer is rarely exciting
in European markets, and on this occasion markets will be looking for
confirmation of economic recovery before they establish a clear trend. Growth
should be steady but slow--too slow to ignite inflation, but sufficient to
ensure no further interest rate cuts.
Conditions may be ideal for Far Eastern equities. Better domestic demand is
evident in many economies, U.S. growth has been strong, and interest rates have
continued to fall. Recent economic trends in Japan have, too, been favorable. If
these continue, we will be on the lookout to increase our exposure to good
quality cyclical companies.
/s/ RUSSELL HOGAN /s/ RALPH LAYMAN
- ----------------- ----------------
RUSSELL HOGAN RALPH LAYMAN
SCOTTISH EQUITABLE INVESTMENT GE INVESTMENT
MANAGEMENT LIMITED MANAGEMENT INCORPORATED
FOR THE INVESTMENT PORTFOLIO MANAGER
MANAGEMENT BOARD
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY
CO-PORTFOLIO MANAGEMENT
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
28 WRL SERIES FUND, INC.
<PAGE>
[SCOTTISH EQUITABLE LOGO]
[GE INVESTMENTS LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY, THE MORGAN STANLEY CAPITAL
INTERNATIONAL (EAFE) INDEX, AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD
(EXCL. UNITED STATES) INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Morgan Stanley Capital International (EAFE)
Index, and the Morgan Stanley Capital International World (excl. United States)
Index over the same time frame.
MSCI MSCI
PORTFOLIO (EAFE) (EXC. US)
--------- ------ ---------
Inception 1/2/97 * $10,000 $10,000 $10,000
Period Ended 12/31/97 $10,750 $9,993 $10,018
FYE 12/31/98 $12,131 $11,305 $11,255
FPE 06/30/99 $12,256 $11,980 $11,956
* Inception
o WRL GE/Scottish
Equitable
International Equity $12,256
o MS Cap, Intl. $11,980
(EAFE)
o MS Cap. Intl.
World (Excl. US) $11,956
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Preussag AG 2.33%
Mannesmann AG 2.27%
Axa 2.13%
ING Groep NV 1.82%
Telefonica SA 1.62%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Commercial Banks 10.49%
Telecommunications 7.34%
Pharmaceuticals 4.14%
Food Stores 4.02%
Primary Metal Industries 3.78%
WE CONTINUE TO HAVE FAITH IN EUROPEAN STOCKS.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
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.
1999 SEMI-ANNUAL REPORT 29
<PAGE>
WRL GE U.S. EQUITY
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN EQUITY
SECURITIES.
MARKET ENVIRONMENT
After a relatively quiet first quarter, the U.S. stock market became more
volatile during the second. The market began the year by consolidating gains it
made during late 1998's strong recovery, which led to a fairly broad-based rally
in March. Across the second quarter, small- and mid-cap stocks outperformed
large caps and value stocks did better than growth stocks. While small- and
mid-cap stocks still lag the Standard and Poor's Index of 500 Common Stocks
("S&P 500") year-to-date, value stocks have actually outperformed the broad
market.
The stocks finished the first half on an upswing, prices dipped and rose for
much of the second quarter. Fears surfaced that the Federal Reserve Board
("Fed") would raise interest rates to reign in above-trend-line economic growth.
When the Fed finally acted at the end of June, increasing interest rates by 25
basis points, the markets had already discounted the move and rose on the news.
PERFORMANCE
For the six months ended June 30, 1999, WRL GE U.S. Equity gained 13.43%,
outperforming its benchmark, the S&P 500, which rose 12.38%. Helping
performance was the healthy economy and the broadening market.
STRATEGY REVIEW
Our valuation discipline paid off this year with our technology holdings, which
were major contributors to performance. Among the top performers were Analog
Devices, Inc., which manufactures electronic controls, computer maker Sun
Microsystems, Inc., First Data Corporation, a database processing company, and
EMC Corporation, which manufactures data storage equipment.
Also turning in strong performances were consumer cyclical stocks and energy
holdings. Among the standouts in the consumer cyclical sector were Comcast
Corporation and United Kingdom-based NTL Incorporated, both cable television
companies, and Dayton Hudson Corporation in the retail trade sector. Energy
stocks with strong first-half performances included Unocal Corporation, an oil
producer, and Halliburton Company and Schlumberger Limited, both oil service
companies.
On the downside, the Portfolio was underweighted in basic materials stocks, a
depressed sector that showed some recovery during the second quarter. In capital
goods, Dover Corporation, Martin Marietta Materials, Inc., and Waste Management,
Inc. turned in weak performances for reasons specific to each company.
OUTLOOK
The U.S. stock market continues to do well despite fears of excessive
valuations. A contrary view holds that if just a few extremely high valuation
stocks were removed from the S&P 500, market valuation as a whole would not seem
disproportionately high. U.S. economic growth is strong, corporate profits are
good, and unemployment remains low. At the same time, intense global
competition, technology, and worker insecurity in the face of layoffs, mergers,
and restructuring combine to keep inflation low. While we believe that the
economic picture remains bright, it is still uncertain whether inflation will
return, a factor we are watching carefully.
/s/ EUGENE K. BOLTON
- --------------------
EUGENE K. BOLTON
WRL GE U.S. EQUITY
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
30 WRL SERIES FUND, INC.
<PAGE>
[GE INVESTMENTS LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL GE U.S. EQUITY AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 1/2/97 * $10,000 $10,000
Period Ended 12/31/97 $12,701 $13,336
FYE 12/31/98 $15,606 $17,148
FPE 06/30/99 $17,703 $19,271
* Inception
o WRL GE U.S. Equity $17,703
o S&P 500 $19,271
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the
hypothetical illustrations in the prospectus, which show the effect on
performance of all charges that may apply to a policy. You may wish to obtain a
personalized illustration, which reflects all the charges that apply to a
policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Citigroup Inc. 3.12%
International Business
Machines corporation 2.37%
Merck & Co., Inc. 2.29%
Bristol-Myers Squibb Company 2.19%
Cisco Systems, Inc 1.89%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Pharmaceuticals 12.09%
Computer & Office Equipment 8.89%
Telecommunications 6.79%
Insurance 5.53%
Computer & Data Processing Services 4.84%
WHILE WE BELIEVE THAT THE ECONOMIC PICTURE REMAINS BRIGHT, IT IS STILL UNCERTAIN
WHETHER INFLATION WILL RETURN.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 31
<PAGE>
WRL THIRD AVENUE VALUE
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING IN COMMON STOCKS, DEBT
SECURITIES, HIGH YIELD/HIGH RISK FIXED INCOME SECURITIES AND FOREIGN SECURITIES.
MARKET ENVIRONMENT
WRL Third Avenue Value focuses on the quality of the securities in the
Portfolio. Investments in common stocks are restricted to well-capitalized
companies which also appear to have strong competitive positions in their
respective industries. The market has until recently shown disdain for the kind
of small-cap companies that comprise the Portfolio. We have regularly taken ad
advantage of this situation to acquire securities for the Portfolio
During the second quarter, the market, the market appeared to come to sudden
realization that inherent values exist in some of the companies in the small-cap
arena. many of our poorest first quarter performers rallied nicely across the
second. The Portfolio also benefited from resource conversion activities such as
takeovers amongst the companies whose securities it held. During the quarter,
the following resource conversion activities were announced regarding stocks in
the Portfolio: one proposed takeover, one proposed sale of a significant
operation, four acquisitions of smaller companies, and one significant special
dividend (essentially a return of capital).
PERFORMANCE
For the six months ended June 30, 1999, WRL Third Avenue Value produced a total
return of 4.04%. By comparison, the Standard and Poor's Index of 500 Common
Stocks gained 12.38% for the same period.
STRATEGY REVIEW
The Portfolio's relatively strong performance in the second quarter benefited
from our 18.4% exposure to semiconductor capital equipment common stocks. We
continue to believe the longer-term outlook for the semiconductor industry is
outstanding, particularly because of the increasing trend toward digitization
and the increasing utlization of the internet. During the period, the sector
benefited from several events including a rise in capacity utilization rates at
many foundries, particularly those in Taiwan and Singapore, an improvement in
the ability of the Korean chip makers to obtain financing for capital equipment,
and Intel Corporation's and Taiwan Semiconductor manufacturing Company Ltd.'s
announcement of more specific plans for starting to move toward manaufacturing
on larger wafers. In addition, Wall Street seemed to come to the realization
that the growth in the Internet is likely to spur demand for semiconductor chips
and therefore semiconductor capital equipment.
OUTLOOK
Our outlook for the Portfolio remains bright. We continue to believe that the
quality of the portfolio is solid. we continue to find value in common stocks of
selected semiconductor capital equipment companies, certain financials, and
certain real estate related issues. Common stocks of Japanese non-life insurers
still appear attractive, through reform is likely to come at a slower pace than
we had initially expected. We believe, however, we will be adequately rewarded
in the long term since we were able to purchase these securities at huge
discounts from net asset value.
/s/ MARTIN J. WHITMAN
- ----------------------
MARTIN J. WHITMAN
WRL THIRD AVENUE VALUE
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
32 WRL SERIES FUND, INC.
<PAGE>
[THIRD AVENUE LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL THIRD AVENUE VALUE AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 1/2/98 * $10,000 $10,000
Period Ended 12/31/98 $9,316 $12,858
FPE 06/30/99 $9,693 $14,450
* Inception
o WRL Third Avenue
Value $9,693
o S&P 500 $14,450
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Electroglas, Inc. 6.55%
Nabors Industries, Inc. 5.84%
Silicon Valley Group, Inc. 4.36%
NCR Corporation 4.36%
3Com Corporation 4.04%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Industrial Machinery & Equipment 26.91%
Insurance 20.06%
Oil & Gas Extraction 5.84%
Electronic Components & Accessories 5.63%
Computer & Data Processing Services 4.36%
THE MARKET APPEARED TO COME TO A SUDDEN REALIZATION THAT INHERENT VALUES EXIST
IN SOME OF THE COMPANIES IN THE SMALL-CAP ARENA.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
SMALL CAPITALIZATION: Smallest 80% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
FOREIGN SECURITIES INVOLVE SPECIAL RISK DESCRIBED IN THE PROSPECTUS THAT SHOULD
BE CONSIDERED CAREFULLY BEFORE INVESTING.
1999 SEMI-ANNUAL REPORT 33
<PAGE>
WRL J.P. MORGAN REAL ESTATE SECURITIES
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM TOTAL RETURN FROM INVESTING PRIMARILY IN EQUITY SECURITIES OF
REAL ESTATE COMPANIES.
MARKET ENVIRONMENT
After a disappointing 1998, when real estate investment trusts ("REITs")
experienced a negative return and their worst year ever, 1999 has been
encouraging. In fact, REITs actually outperformed both the Standard and Poor's
Index of 500 Common Stocks and Russell 2000 Index by wide margins in the months
of April and May. A number of favorable factors, several of which have been in
place since mid-1998, led to this upward bias. First, most REITs continue to
meet or exceed consensus earnings forecasts and dividend growth projections--a
fact that appears to be catching the eye of market participants. Second,
positive cash flows into REIT mutual funds, although meager, may indicate a
return of some individual investors to the sector after a dry spell that began
last year. Third, recent press releases have been generally favorable to the
sector, providing a healthy reprieve for this long-criticized group. Fourth,
Congress is reviewing proposals that may allow REITs more flexibility in
operating their properties, a reversal from policies in 1998 that resulted in
new laws restricting the previous rights of some REITs.
PERFORMANCE
For the six months ended June 30, 1999, the Portfolio returned 5.08%, slightly
ahead of the Morgan Stanley REIT Index, which gained 4.62%. The performance of
the Portfolio was hindered by trading costs incurred as a result of market
timing cash flows during the period. Frequent large deposits and withdrawals
have forced the Portfolio's management team to sell securities without regard to
market prices. This short-term trading activity has made it very difficult to
efficiently manage the Portfolio.
STRATEGY REVIEW
Our overweighted position in Starwood Hotels & Resorts Worldwide, Inc.
("Starwood") had a positive impact on the Portfolio's performance. Starwood, a
hotel and gaming company, benefited from the announcement of the sale of its
Caesar's Palace gaming operations to Park Place Entertainment for approximately
$3 billion. The Portfolio also benefited from its overweighting in Host
Marriott Corporation. The company, owner and operator of many Marriott, Ritz
Carlton, Four Seasons, Swissotel, and Hyatt hotels, jumped on speculation about
the positive business impact of recently proposed amendments to REIT
legislation. We were negatively impacted from overweight positions in Simon
Property Group, Inc. and National Golf Properties, Inc.
OUTLOOK
With the U.S. economy strong and the Federal Reserve Board's relative mild
stance toward tightening, we expect business demand for real estate space to
remain steady. Across the nation, the supply of new buildings appears to be in
balance with projected demand. We expect REITs to grow earnings by focusing on
expense reduction, disciplined development and acquisitions, and continued
consolidations. Furthermore, REITs continue to be attractively priced relative
to their underlying real estate assets and to other capital markets, making them
an interesting alternative to many investors.
/s/ DANIEL P. O'CONNOR
- ----------------------
DANIEL P. O'CONNOR
WRL J.P. MORGAN REAL ESTATE SECURITIES
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
34 WRL SERIES FUND, INC.
<PAGE>
[J.P MORGAN INVESTMENT LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL J.P. MORGAN REAL ESTATE SECURITIES AND THE MORGAN STANLEY REIT INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Morgan Stanley REIT Index over the same
time frame.
MORGAN STANLEY
PORTFOLIO REIT INDEX
--------- ----------
Inception 5/1/98 * $10,000 $10,000
Period Ended 12/31/98 $8,507 $8,677
FPE 06/30/99 $8,939 $9,078
* Inception
o WRL J.P. Morgan Real
Estate Securities $8,939
o Morgan Stanley REIT $9,078
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
FOR VARIABLE UNIVERSAL LIFE INSURANCE, PLEASE REFER TO THE HYPOTHETICAL
ILLUSTRATIONS IN THE PROSPECTUS, WHICH SHOW THE EFFECT ON PERFORMANCE OF ALL
CHARGES THAT MAY APPLY TO A POLICY. YOU MAY WISH TO OBTAIN A PERSONALIZED
ILLUSTRATION, WHICH REFLECTS ALL THE CHARGES THAT APPLY TO A POLICY.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Equity Office Properties Trust 7.49%
Simon Property Group, Inc. 5.25%
ProLogis Trust 4.13%
Equity Residential Properties Trust 3.89%
Spieker Properties, Inc. 3.87%
LARGEST INDUSTRIES (% OF NET ASSETS)
Holding & Other Investment Offices 74.47%
Real Estate 11.94%
Hotel & Other Lodging Places 3.38%
REITS CONTINUE TO BE ATTRACTIVELY PRICED RELATIVE TO THEIR UNDERLYING REAL
ESTATE ASSETS AND TO OTHER CAPITAL MARKETS.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 35
<PAGE>
WRL GOLDMAN SACHS GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL FROM INVESTING PRIMARILY IN EQUITY
SECURITIES.
MARKET ENVIRONMENT
The market of late has been dominated by a marked change in the characteristics
of stocks, which held market leadership. First, investors favored smaller
capitalization over larger capitalization stocks in the second quarter. Second,
the market reversed its bias toward growth-oriented stocks, favoring value
stocks instead.
PERFORMANCE
From its inception May 3, 1999, through June 30, 1999, WRL Goldman Sachs Growth
posted a return of 3.60%, outperforming its benchmark index, the Standard and
Poor's Index of 500 Common Stocks, which posted a return of 3.06% for the same
period.
STRATEGY REVIEW
In all environments and sectors, we prefer to invest in companies we feel are
the dominant players in their respective industries, retain a strong business
franchise, and maintain sustainable growth rates.
On a sector basis, strong stock selection in the consumer discretionary and
technology sectors area contributed to the period's outperformance. At the same
time, however, our underweighting in the producer durables sector, an area that
was rewarded in the broader market during the quarter, detracted from
performance. Additional detractors from performance included the financial
service and health care sectors which performed poorly for the quarter. Overall,
our outperformance relative to the benchmark is attributable to individual stock
selection.
In the consumer discretionary sector, we were boosted by Tandy Corporation,
whose RadioShack stores produced double-digit growth in sales, and several of
our newspaper and broadcasting holdings, including Infinity Broadcasting Corp.,
Chancellor Media Corporation, Central Newspapers, Inc., The New York Times
Company, and Tribune Company. In the technology sector, stock selection
contributed significantly to performance. Notable outperformers in this area
include QUALCOMM Incorporated, the best performing stock in the Portfolio, Cisco
Systems, Inc., International Business Machines Corporation, Lucent Technologies
Inc., and EchoStar Communications Corporation, a fairly new holding for us.
OUTLOOK
While we neither make nor rely on economic forecasts to make investment
decisions, we are generally bullish on the U.S. economy. Over the last decade,
global communication has increased, resulting from significant technological
advances, as well as a generally peaceful world political environment. We
believe that this trend, combined with favorable demographic trends, will
benefit U.S. companies over the long term. More fundamentally, though, we
continue to focus on the core business characteristics which provide a
foundation for long-term growth, such as strength of franchise, quality of
management, and free cash flow, along with favorable demographic trends.
/s/ HERBERT E. EHLERS
- ---------------------
HERBERT E. EHLERS
WRL GOLDMAN SACHS GROWTH
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
36 WRL SERIES FUND, INC.
<PAGE>
[GOLDMAN SACHS LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL GOLDMAN SACHS GROWTH AND THE STANDARD AND POOR'S INDEX OF 500 COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $10,360 $10,306
* Inception
o WRL Goldman Sachs
Growth $10,360
o S&P 500 $10,306
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Microsoft Corporation 5.28%
AT&T Corp.-Liberty Media Group 4.17%
General Electric Company 3.62%
The AES Corporation 3.49%
Time Warner Inc. 3.30%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Pharmaceuticals 15.18%
Computer & Data Processing Services 11.32%
Telecommunications 10.37%
Commercial Banks 9.04%
Chemicals & Allied Products 8.58%
WE CONTINUE TO FOCUS ON THE CORE BUSINESS CHARACTERISTICS WHICH PROVIDE A
FOUNDATION FOR LONG-TERM GROWTH.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 37
<PAGE>
WRL GOLDMAN SACHS SMALL CAP
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL FROM INVESTING PRIMARILY IN EQUITY
SECURITIES OF U.S. ISSUES AND CERTAIN FOREIGN ISSUES TRADED IN THE U.S.
MARKET ENVIRONMENT
In the second quarter, the U.S. continued its historic economic expansion and
stock market advance. Value-oriented, small capitalization and emerging market
stocks staged a comeback, and claimed market leadership. For the quarter, the
best performing domestic stocks were small capitalization stocks--a marked
change compared to the first quarter and, indeed, to most of 1998. In another
turnaround, the growth versus value disparity has reversed course. By the end of
the quarter, however, the market reasserted its preference for large-cap growth
stocks. The shifting back and forth between size and style categories meant that
volatility in the market remained quite high during the second quarter.
PERFORMANCE
From its inception May 3, 1999, through June 30, 1999, WRL Goldman Sachs Small
Cap posted a return of 7.00%, outperforming its benchmark, the Russell 2000
Index, which posted a return of 5.75% for the same period.
STRATEGY REVIEW
In managing the Portfolio, we do not take size or sector bets. We hope to add
value versus our benchmark by individual stock selection. Based on rigorous
testing of the variables that have led to excess returns in the past, the
Portfolio prefers stocks with attractive valuations, favorable fundamental
research analyst opinions, good momentum, and lower-than-average risk. During
the second quarter, our concentration on stocks with attractive valuations and
favorable research analyst opinions contributed positively to returns. With the
rapid turnabout in market leadership, however, stocks with good momentum fared
poorly and stocks with lower-than-average risk lagged those with higher risk,
penalizing overall return.
OUTLOOK
As usual, the Portfolio remains fully invested. Our sector weightings,
distribution among size categories, and exposures to other risk factors are
targeted to stay close to those of the Russell 2000 Index. We intend to maintain
our disciplined, long-term approach to equity investing despite possible
continued volatility in the U.S. equity markets throughout the remainder of
1999. We believe that through our combined qualitative and quantitative strategy
for selecting stocks we will generate solid long-term returns for our clients.
/s/ ROBERT C. JONES
- -------------------
ROBERT C. JONES
WRL GOLDMAN SACHS SMALL CAP
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
38 WRL SERIES FUND, INC.
<PAGE>
[GOLDMAN SACHS LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL GOLDMAN SACHS SACHS SMALL CAP AND THE RUSSELL 2000 INDEX.
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Russell 2000 Index over the same time
frame.
RUSSELL
PORTFOLIO 2000 INDEX
--------- ----------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $10,700 $10,575
* Inception
o WRL Goldman Sachs
Small Cap $10,700
o Russell 2000 $10,575
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Arthur J. Gallagher & Co. 0.60%
Cyprus Amax Minerals Company 0.54%
Richmond County Financial Corp. 0.54%
The United Illuminating Company 0.50%
Bindley Western Industries, Inc. 0.50%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 7.41%
Commercial Banks 5.88%
Industrial Machinery & Equipment 5.17%
Electronic Components & Accessories 4.69%
Construction 4.23%
OUR CONCENTRATION ON STOCKS WITH ATTRACTIVE VALUATIONS AND FAVORABLE RESEARCH
ANALYST OPINIONS CONTRIBUTED POSITIVELY TO RETURNS.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth
style approaches. Value style emphasizes securities currently out of favor but
with the potential to recover, while growth style concentrates on securities
with present and anticipated earnings growth.
SMALL CAPITALIZATION: Smallest 80% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUNDS CURRENT PROSPECTUS.
SMALL-CAP SECURITIES INVOLVE CERTAIN RISKS DESCRIBED IN THE PROSPECTUS THAT
SHOULD BE CONSIDERED CAREFULLY BEFORE INVESTING.
1999 SEMI-ANNUAL REPORT 39
<PAGE>
WRL T. ROWE PRICE DIVIDEND GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS TO PROVIDE AN INCREASING LEVEL OF DIVIDEND INCOME, LONG-TERM CAPITAL
APPRECIATION, AND REASONABLE CURRENT INCOME FROM INVESTING PRIMARILY IN DIVIDEND
PAYING SECURITIES.
MARKET ENVIRONMENT
WRL T. Rowe Price Dividend Growth commenced operations May 3. The Portfolio's
inception occurred as stock market leadership was changing from large-cap growth
stocks to cyclicals, but neither the previous environment nor the new one was
entirely friendly to our investment program. Investor's previous single-minded
focus on growth stocks, especially technology issues, bypassed many of the
income-oriented stocks we favor, while most cyclical companies lack the
sustained growth and ability to raise their dividends that we seek.
PERFORMANCE
With assets being invested across this short start-up period, performance
comparisons, good or bad, are less meaningful than over a longer term. From
inception through June 30, 1999, WRL T. Rowe Price Dividend Growth returned
0.60%. By comparison, the Standard and Poors Index of 500 Common Stocks gained
3.06% for the same period.
STRATEGY REVIEW
Typically, we seek companies that pay dividends, particularly those able to
support rising dividends. In addition to the dividend emphasis, we have a value
bias in stock selection, seeking attractive valuations. The Portfolio is widely
diversified across industry sectors, with significant assets invested in
financial services, consumer nondurables, and consumer cyclicals.
Our best performers over the period included Hewlett-Packard Company, whose
fundamentals remained strong, and Richfood Holdings, Inc., which received a
buyout offer. The Portfolios Bermuda-based insurance stocks, on the other hand,
suffered from a difficult pricing environment that now appears to be improving.
Among our larger sector concentrations, financial stocks, consumer cyclicals,
utilities, and energy all contributed strongly to returns. Within the consumer
cyclical group, we were heartened by the performance of our significant holdings
of real estate investment trusts after a long period of weakness. We like these
stocks for their high and increasing dividends and cash flows. The robust energy
area included three of the Portfolios larger holdings--Mobil Corporation, BP
Amoco PLC, and Royal Dutch Petroleum Company. Our weaker groups included
business services and transportation and consumer nondurables, especially
pharmaceuticals, where major holding Bristol-Myers Squibb Company was
disappointing.
OUTLOOK
Given today's higher interest rates and high valuations, we would not be
surprised to see stock returns moderate in coming months from the strong pace
seen so far in 1999. We remain risk-conscious and will seek quality companies
with prospects for above-average earnings and dividend growth. Our emphasis on
value when establishing positions in a stock means we are unlikely to own recent
high flyers like the Internet stocks, which do not meet our investment criteria.
We believe our approach should provide solid returns over time with less risk
than the broad market.
/s/ WILLIAM J. STROMBERG
- ------------------------
WILLIAM J. STROMBERG
WRL T. ROWE PRICE DIVIDEND GROWTH
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
40 WRL SERIES FUND, INC
<PAGE>
[T. ROWE PRICE DIVIDEND GROWTH LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL T. ROWE PRICE DIVIDEND GROWTH AND THE STANDARD AND POOR'S INDEX OF 500
COMMON STOCKS
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Standard & Poor's Index of 500 Common
Stocks (S&P) over the same time frame.
PORTFOLIO S&P INDEX
--------- ---------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $10,060 $10,306
* Inception
o WRL T. Rowe Price
Dividend Growth $10,060
o S&P 500 $10,306
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Hewlett-Packard Company 1.96%
Bristol-Myers Squibb Company 1.96%
Galileo International, Inc. 1.96%
SBC Communications Inc. 1.96%
AlliedSignal Inc. 1.86%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Pharmaceuticals 8.49%
Commercial Banks 7.48%
Petroleum Refining 6.02%
Holding & Other Investment Offices 5.57%
Insurance 5.42%
INVESTOR'S SINGLE MINDED FOCUS ON GROWTH STOCKS, ESPECIALLY
TECHNOLOGY ISSUES, BYPASSED MANY OF THE INCOME-ORIENTED STOCKS WE FAVOR.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
LARGE CAPITALIZATION: Largest 5% of the top 5,000 U.S. stocks.
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.
1999 SEMI-ANNUAL REPORT 41
<PAGE>
WRL T. ROWE PRICE SMALL CAP
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS LONG-TERM GROWTH OF CAPITAL FROM INVESTING PRIMARILY IN COMMON STOCKS
OF SMALL GROWTH COMPANIES.
MARKET ENVIRONMENT
WRL T. Rowe Price Small Cap commenced operations May 3 of this year. The
Portfolio invests primarily in small growth companies whose market
capitalization is smaller than 80% of those in the Standard and Poor's Index of
500 Common Stocks ("S&P 500").
After a long period in the wilderness, small-cap stocks became market leaders
late in the period. For the second quarter, the Russell 2000 Index, a broad
measure of small-cap stock performance, returned 15.10%, surpassing the 7.05%
return of the S&P 500, the long-time market leader. Continued evidence of the
U.S. economy's strength encouraged investors to venture beyond blue chip growth
stocks into economically sensitive stocks, which typically include small
companies.
PERFORMANCE
WRL T. Rowe Price advanced strongly from its inception, achieving a return for
the period May 3, 1999, through June 30, 1999, of 12.00%. For its part, the
Russell 2000 Index rose 5.75% for the same period. The difference in returns
relates largely to our reluctance to commit assets to the Internet frenzy, as
well as the process of investing the Portfolio's seed money.
STRATEGY REVIEW
We use a number of quantitative models to select investments, so that the
Portfolio as a whole reflects characteristics we consider important, such as
valuations and projected earnings growth. In addition, the Portfolio will
typically be broadly diversified, and the top twenty five holdings will not
constitute a large portion of assets. At period end, the Portfolio had more than
250 positions, few representing more than 1% of assets.
Current holdings are diversified across several sectors. Technology and
telecommunications were among the best performing groups for our period, while
health care and consumer nondurables were among the weakest.
OUTLOOK
Now that small company growth stocks have achieved some momentum, we are
reasonably optimistic it can be maintained. We will stick to our strategy of
selecting stocks with solid, long-term growth potential that represent
reasonable values at the time of purchase. We will, as well, maintain our broad
diversification, which should serve investors well when market leadership
changes.
/s/ RICHARD T. WHITNEY
- ----------------------
RICHARD T. WHITNEY
WRL T. ROWE PRICE SMALL CAP
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
42 WRL SERIES FUND, INC.
<PAGE>
[T. ROWE PRICE LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL T. ROWE PRICE SMALL CAP AND THE RUSSELL 2000 INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Russell 2000 Index over the same time
frame.
RUSSELL
PORTFOLIO 2000 INDEX
--------- ----------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $11,200 $10,575
* Inception
o WRL T Rowe Price
Small Cap $11,200
o Russell 2000 $10,575
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
QLogic Corporation 1.02%
Proxim, Inc. 1.00%
VISX, Incorporated 0.95%
Zebra Technologies Corporation 0.81%
Symbol Technologies, Inc. 0.81%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 17.19%
Electronic Components & Accessories 8.51%
Pharmaceuticals 5.42%
Business Services 4.90%
Computer & Office Equipment 4.86%
EQUITY MATRIX
NOW THAT SMALL COMPANY GROWTH STOCKS HAVE ACHIEVED SOME MOMENTUM, WE ARE
REASONABLY OPTIMISTIC IT CAN BE MAINTAINED.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
SMALL CAPITALIZATION: Smallest 80% of the top 5,000 U.S. stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
SMALL-CAP SECURITIES INVOLVE CERTAIN RISKS DESCRIBED IN THE PROSPECTUS THAT
SHOULD BE CONSIDERED CAREFULLY BEFORE INVESTING.
1999 SEMI-ANNUAL REPORT 43
<PAGE>
WRL SALOMON ALL CAP
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS CAPITAL APPRECIATION FROM INVESTING PRIMARILY IN COMMON STOCKS AND
CONVERTIBLE SECURITIES.
MARKET ENVIRONMENT
So far this year, the U.S. economy has continued to show signs of benign
inflation and productivity-driven growth. Domestic demand growth outstripped
even the more optimistic estimates of the economy's long-term capacity, and a
combination of rising productivity, a flood of goods from abroad, and more
intensive use of labor kept inflation from overheating. While the biggest risk
in the period remained the lingering threat of eventual overheating and the
Federal Reserve Board tightening, policy-makers, led by Chairman Greenspan, held
their stance on the sidelines until implementing a well-telegraphed 25 basis
point tightening on June 30. Continued improvement in international stability
after last summer's turmoil caused investors to focus on cyclical stocks that
have mostly under performed for the last several quarters. A significant
rotation into cyclicals thus occurred as well as an increase in the breadth of
the market. This increase in breadth permitted the sector rotations without
causing a significant sell-off in the market.
PERFORMANCE
WRL Salomon All Cap demonstrated the benefits associated with its broad market
strategy as May and June showed improved market breadth. From its inception date
of May 3, 1999, through June 30, 1999, the Portfolio returned 7.50%,
outperforming its benchmark, the Russell 3000 Index, which gained 2.87% for the
same period.
STRATEGY REVIEW
Certain consumer staples, communications services, and technology stocks drove
the Portfolio's performance gains in the period. Among the individual companies
contributing meaningfully to overall performance were Tesoro Petroleum
Corporation, PanAmSat Corporation and S3 Incorporated. During the recent energy
rally, we took some profits from the run-up in refiners and reinvested them in
strategically well-positioned energy production companies. Over the period, we
also established new positions in certain media stocks and selectively exited
technology positions that had reached our assessment of full value. Finally, we
increased positions in a few existing holdings that are experiencing improving
business fundamentals that, in our opinion, are not yet reflected in current
market prices.
OUTLOOK
The rotation that has recently taken place in the equity markets has principally
benefited three categories: value stocks, cyclical stocks, and small/mid-cap
stocks. We believe that this rotation, while no longer in its early stages,
still requires some time to evolve fully. At the same time, while many broad
market indicators appear expensive, we are still able to find selected companies
that have attractive fundamental profiles at reasonable valuations. We continue
to evaluate the risk/reward of each security we own and use position size to
reflect our assessments. Overall, the Portfolio is increasingly positioned with
companies that have favorable growth characteristics yet retain reasonable
current valuations.
/s/ ROSS S. MARGOLIES /s/ ROBERT M. DONAHUE, JR.
- --------------------- ---------------------------
ROSS S. MARGOLIES ROBERT M. DONAHUE, JR.
WRL SALOMON ALL CAP
CO-PORTFOLIO MANAGERS
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio managers through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
44 WRL SERIES FUND, INC.
<PAGE>
[SALOMON BROTHERS ASSET MANAGEMENT LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL SALOMON ALL CAP AND THE RUSSELL 3000 INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Russell 3000 Index over the same time
frame.
RUSSELL
PORTFOLIO 3000 INDEX
--------- ----------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $10,750 $10,287
* Inception
o WRL Salomon
All Cap $10,750
o Russell 3000 $10,287
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy. While many
broad market indicators appear expensive, we are still able to find selected
companies that have attractive fundamental profiles.
FIVE LARGEST HOLDING (% OF NET ASSETS)
Food Lion, Inc. 3.61%
Philip Morris Companies Inc. 3.49%
Federated Department Stores, Inc. 3.03%
Hormel Foods Corporation 2.79%
Costco Companies, Inc. 2.79%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Food & Kindred Products 11.13%
Telecommunications 9.65%
Computer & Office Equipment 7.14%
Communication 5.83%
Industrial Machinery & Equipment 5.77%
WHILE MANY BROAD MARKET INDICATORS APPEAR EXPENSIVE, WE ARE STILL ABLE TO FIND
SELECTED COMPANIES THAT HAVE ATTRACTIVE FUNDAMENTAL PROFILES.
EQUITY MATRIX
BLEND: An investment style that blends both value style and growth style
approaches. Value style emphasizes securities currently out of favor but with
the potential to recover, while growth style concentrates on securities with
present and anticipated earnings growth.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 45
<PAGE>
WRL PILGRIM BAXTER MID CAP GROWTH
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS CAPITAL APPRECIATION FROM INVESTING PRIMARILY IN COMMON STOCKS AND
CONVERTIBLE SECURITIES.
MARKET ENVIRONMENT
The U.S. economic outlook continues to be positive by most measures and
unemployment remains near a 30-year low. Despite the continued tight labor
market, wage inflation does not appear to be a significant threat, at least
according to the employment cost index. Productivity, too, remains high. At its
June 30 Open Market Committee meeting, the Federal Reserve Board raised interest
rates one-quarter point and adopted "a directive that included no predilection
about near-term policy action".
Although large capitalization stocks have surpassed their smaller brethren
year-to-date, the second quarter provided an environment where small stocks beat
mid-size stocks and mid-size stocks beat large caps. Growth stocks, other than
having a tough May, have led the market higher for the year across all
capitalizations.
PERFORMANCE
WRL Pilgrim Baxter Mid Cap Growth commenced investment operations on May 3,
1999. Even with the short operating history, we are very pleased with the
performance of the Portfolio. From its inception to June 30, 1999, the Portfolio
returned 10.90%. By comparison, the Russell Mid Cap Growth Index gained 5.60%
for the same period.
STRATEGY REVIEW
The Portfolio's most heavily weighted sector, at over 40%, is technology. To
date, this sector has contributed well over half of our positive performance and
there has been broad strength among the holdings. Semiconductors,
telecommunication equipment, Internet services, and contract manufacturing
companies all participated in this rally due to robust expectations for second
quarter earnings. The Portfolio's representation in software is small due to
concerns over Year 2000 demand imbalances. The business outlook for technology
firms can change quickly. At no time is this more likely to be true than in
1999, when Year 2000 issues will cause more opportunities and more
disappointments than in a typical year.
The consumer cyclical sector, which is comprised mostly of retailers, is the
next largest contributor to performance this period. No one stock drove the
overall performance, but again, strength was broad among holdings. Energy and
health care were the only sectors to produce negative returns for us and their
effect was minimal.
OUTLOOK
We continue to like the long-term prospects of the mid-cap growth companies we
own. Superior technologies, services, balance sheets, business models, and
ability to execute are all characteristics commonly found in top quality growth
companies. We believe these same characteristics contribute to sustained,
above-average growth rates. Many investors have been anxiously waiting for the
rebound in small/mid capitalization stocks. We are encouraged with these stocks'
recent outperformance and there is much evidence to suggest their relative
performance will continue to be strong.
/S/ JEFF A. WRONA
- -----------------
JEFF A. WRONA
WRL PILGRIM BAXTER MID CAP GROWTH
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
46 WRL SERIES FUND, INC.
<PAGE>
[PILGRIM BAXTER LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL PILGRIM BAXTER MID CAP GROWTH AND THE RUSSELL MID CAP GROWTH INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the Russell Mid Cap Growth Index over the same
time frame.
RUSSELL MID
PORTFOLIO CAP GROWTH
--------- ----------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $11,090 $10,560
* Inception
o WRL Pilgrim Baxter
Mid Cap Growth $11,090
o Russell Mid Cap
Growth $10,560
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investor's units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Outdoor Systems, Inc. 3.29%
Network Solutions, Inc. 3.29%
Sanmina Corporation 3.08%
Broadcom Corporation 2.98%
Xilinx, Inc. 2.98%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Electronic Components & Accessories 23.30%
Computer & Data Processing Services 17.76%
Business Services 8.42%
Communications Equipment 8.01%
Medical Instruments & Supplies 4.83%
MANY INVESTORS HAVE BEEN ANXIOUSLY WAITING FOR THE REBOUND IN SMALL/MID
CAPITALIZATION STOCKS. WE ARE ENCOURAGED WITH THESE STOCKS' RECENT
OUTPERFORMANCE.
EQUITY MATRIX
GROWTH: An investment style in which the Portfolio Manager looks for equity
securities with present and anticipated high rates of earnings growth. Per-share
price is not emphasized as much as it is in value investing.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 47
<PAGE>
WRL DREYFUS MID CAP
FOR THE PERIOD ENDED JUNE 30, 1999
(UNAUDITED)
...SEEKS TOTAL INVESTMENT RETURN WHICH CONSISTENTLY OUTPERFORMS THE STANDARD
AND POOR'S 400 MID CAP INDEX.
MARKET ENVIRONMENT
WRL Dreyfus Mid Cap commenced investment operations on May 3, 1999, with an
objective of achieving total investment returns (including capital appreciation
and income). Across its short operating history, the Portfolio benefited from
solid stock selection. Individual stocks that helped performance include
Gulfstream Aerospace Corporation ("Gulfstream"), Biogen, Inc., Best Buy Co.,
Inc. and Dollar Tree Stores, Inc. Gulfstream was the target of a takeover bid
from General Dynamics, while Biogen, Inc., a pharmaceutical firm, has attracted
investor interest because of a product that is used in the treatment of multiple
sclerosis Best Buy Co., Inc. and Dollar Tree Stores, Inc., are retailing firms
that have benefited from well-executed business strategies.
PERFORMANCE
From its inception through June 30, 1999, WRL Dreyfus Mid Cap produced a total
return of 5.20%, comparing favorably to our benchmark, the Standard and Poors
400 Mid Cap Index ("S&P Mid Cap"), which gained 5.60% over the same period.
STRATEGY REVIEW
The Portfolio invests principally in common stocks of medium capitalization
companies. Overall, we seek to have a diversified list of stocks that offer
above-average potential for appreciation based on our multi-factor approach. The
factors that drive the process are earnings momentum, financial attributes, and
relative value measures.
We use a quantitatively based security valuation system along with a disciplined
construction process. Our security valuation system is based upon collecting
data on a number of fundamentally based factors, and then to "listen" to the
market on how to weight those factors. We seek to identify companies that
exhibit consistent earnings growth and deliver results that meet or exceed
market expectations. Other valuation considerations may include profit margins,
growth in cash flow, and other balance sheet measures.
OUTLOOK
As for portfolio construction, we expect to follow a strategy of being both beta
and economic sector neutral relative to our benchmark. Our goal is to neutralize
market and sector risks, and to allow individual stock selection to drive
returns.
/s/ JOHN R. O'TOOLE
- -------------------
JOHN R. O'TOOLE
WRL DREYFUS MID CAP
PORTFOLIO MANAGER
The views expressed in this Portfolio Manager's Commentary reflect those of the
portfolio manager through the period ended June 30, 1999. They do not
necessarily represent the views of WRL Investment Management, Inc. ("WRL
Management"). Any such views are subject to change at any time based upon market
or other conditions and WRL Management disclaims any responsibility to update
such views. These views may not be relied upon as investment advice and, because
trading decisions are based upon numerous factors, may not be relied upon as an
indication of trading intent.
48 WRL SERIES FUND, INC.
<PAGE>
[DREYFUS LOGO]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL DREYFUS MID CAP AND THE STANDARD AND POOR'S 400 MID CAP INDEX
[GRAPH OMITTED]
Mountain graph depicting the change in value of a $10,000 investment in the
portfolio since inception versus the S&P 400 Mid Cap Index over the same time
frame.
S&P 400
PORTFOLIO MID CAP INDEX
--------- -------------
Inception 5/3/99 * $10,000 $10,000
Period Ended 06/30/99 $10,520 $10,560
* Inception
o WRL Dreyfus
Mid Cap $10,520
o S&P 400 Mid Cap $10,560
The Portfolio's investment return and net asset value per share will fluctuate.
Past performance does not guarantee future results. Investors units, when
redeemed, may be worth more or less than their original cost.
This performance information must be accompanied by the quarterly performance
reports as of the most recent calendar quarter for the appropriate variable
annuity products showing average annual and cumulative total returns of the
respective products, net of fees and charges, including mortality and expense
risk charge.
For variable universal life insurance, please refer to the hypothetical
illustrations in the prospectus, which show the effect on performance of all
charges that may apply to a policy. You may wish to obtain a personalized
illustration, which reflects all the charges that apply to a policy.
FIVE LARGEST HOLDINGS (%OF NET ASSETS)
Altera Corporation 1.99%
Linear Technology Corporation 1.84%
Maxim Integrated Products, Inc. 1.84%
Lexmark International Group, Inc. 1.84%
Biogen, Inc. 1.84%
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Electronic Components & Accessories 8.96%
Computer & Data Processing Services 8.94%
Commercial Banks 5.67%
Apparel & Accessory Stores 4.26%
Chemical & Allied Products 4.11%
OUR GOAL IS TO NEUTRALIZE MARKET AND SECTOR RISKS, AND TO ALLOW INDIVIDUAL STOCK
SELECTION TO DRIVE RETURNS.
EQUITY MATRIX
VALUE: An investment style that focuses on stocks, which a Portfolio Manager
thinks are currently depressed in price and will eventually have their worth
recognized by the market. When and if the share price recovers, the manager
attempts to gain a profit.
MEDIUM CAPITALIZATION: Stocks ranked 251 through 1,000 of the top 5,000 U.S.
stocks.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS.
1999 SEMI-ANNUAL REPORT 49
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN MONEY MARKET
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (24.51%)
Federal Home Loan Bank
4.85%, due 07/14/1999 ......................... $ 7,000 $ 6,988
Student Loan Marketing Association
4.60%, due 07/01/1999 ......................... 53,651 53,651
---------
Total Short-Term U.S.
Government Obligations
(cost: $ 60,639)............................................... 60,639
---------
COMMERCIAL PAPER (33.90%)
AUTOMOTIVE (4.03%)
Ford Motor Credit Company
5.07%, due 07/08/1999 ......................... 5,000 4,995
Ford Motor Credit Company
4.83%, due 07/27/1999 ......................... 5,000 4,983
BUSINESS CREDIT INSTITUTIONS (7.47%)
BBL North America Funding -
144A (7c)
4.85%, due 08/11/1999 ......................... 2,000 1,989
Cregem North America, Inc.
4.74%, due 07/19/1999 ......................... 3,500 3,492
Monte Rosa Capital
Corporation - 144A (7c)
5.05%, due 07/08/1999 ......................... 6,000 5,994
Trident Capital - 144A (7c)
4.75%, due 07/12/1999 ......................... 7,000 6,990
COMMERCIAL BANKS (2.82%)
Halifax PLC
4.73%, due 07/13/1999 ......................... 7,000 6,989
HOLDING & OTHER INVESTMENT OFFICES (4.85%)
Koch Industries, Inc. - 144A (7c)
5.52%, due 07/01/1999 ......................... 12,000 12,000
PERSONAL CREDIT INSTITUTIONS (4.85%)
Associates First Capital Corporation
5.78%, due 07/01/1999 ......................... 12,000 12,000
PETROLEUM REFINING (3.03%)
Mobil Corporation - 144A (7c)
4.97%, due 07/01/1999 ......................... 7,500 7,500
PHARMACEUTICALS (2.82%)
Pfizer Inc. - 144A (7c)
4.95%, due 07/19/1999 ......................... 7,000 6,983
SECURITY & COMMODITY BROKERS (2.82%)
Morgan Stanley Dean Witter and Co.
4.95%, due 07/20/1999 ......................... 7,000 6,982
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
COMMERCIAL PAPER (CONTINUED)
TELECOMMUNICATIONS (1.21%)
AT&T Corp.
4.85%, due 07/27/1999 ......................... $ 3,000 $ 2,989
---------
Total Commercial Paper
(cost: $ 83,886)................................................ 83,886
---------
SHORT-TERM OBLIGATIONS (27.15%)
BEVERAGES (2.42%)
PepsiCo, Inc. (7d)
4.84%, due 08/19/1999 ......................... 6,000 5,999
BUSINESS CREDIT INSTITUTIONS (2.51%)
The CIT Group, Inc. (7d)
4.95%, due 10/20/1999 ......................... 6,200 6,200
COMMERCIAL BANKS (17.37%)
American Express Centurion
Bank (7d)
4.90%, due 08/13/1999 ......................... 5,000 5,000
American Express Centurion
Bank (7d)
4.95%, due 04/26/2000 ......................... 3,000 3,000
Bank One Corporation (7d)
4.97%, due 08/04/1999 ......................... 7,000 7,000
Comerica Incorporated (7d)
4.90%, due 03/22/2000 ......................... 10,000 9,997
First Union National Bank (7d)
5.02%, due 10/25/1999 ......................... 4,000 4,000
KeyBank National Association (7d)
4.84%, due 09/03/1999 ......................... 7,000 6,999
KeyBank National Association (7d)
5.02%, due 10/15/1999 ......................... 2,000 2,000
Wells Fargo & Company
5.31%, due 03/31/2000 ......................... 5,000 4,999
FINANCE (0.81%)
Asset-Backed Securities Investment
Trust - 144A (7c) (7d )
4.95%, due 08/15/1999 ......................... 2,000 2,000
PERSONAL CREDIT INSTITUTIONS (4.04%)
Beneficial Corporation (7d)
5.07%, due 10/12/1999 ......................... 5,000 5,001
General Motors Acceptance
Corporation (7d)
4.89%, due 07/06/1999 ......................... 5,000 5,000
---------
Total Short-Term Obligations
(cost: $ 67,195)................................................. 67,195
---------
See Notes to the Financial Statements, which is an is report.
50 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN MONEY MARKET (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CERTIFICATES OF DEPOSITS (14.34%)
Abbey National Treasury Services
5.22%, due 05/11/2000 ......................... $ 2,000 $ 1,999
Bank of Nova Scotia
5.15%, due 04/20/2000 ......................... 4,000 3,998
Bayerische Hypo-und
Vereinsbank - NY
5.15%, due 04/25/2000 ......................... 6,000 6,000
Bayerische Landesbank - NY
5.12%, due 03/21/2000 ......................... 6,000 5,993
Canadian Imperial Bank of
Commerce - NY
5.01%, due 02/07/2000 ......................... 6,500 6,499
Commerzbank AG
4.99%, due 01/25/2000 ......................... 5,000 4,999
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CERTIFICATES OF DEPOSITS (CONTINUED)
Deutsche Bank AG
5.00%, due 01/06/2000 ......................... $ 3,000 $ 3,000
The Toronto Dominion Bank - NY
5.65%, due 07/24/1999 ......................... 3,000 3,000
---------
Total Certificates of Deposits
(cost: $ 35,488)................................................. 35,488
---------
Total Investment Securities
(cost: $ 247,208)................................................ $ 247,208
=========
SUMMARY
Investments, at market value ...................... 99.90% $ 247,208
Other assets in
excess of liabilities .......................... 0.10% 253
-------- ---------
Net assets ........................................ 100.00% $ 247,461
======== =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 51
<PAGE>
SCHEDULE OF INVESTMENTS
WRL AEGON BOND
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
U.S. GOVERNMENT OBLIGATIONS (20.44%)
U.S. Treasury Bond (7b)
7.25%, due 05/15/2016 ......................... $ 5,000 $ 5,496
U.S. Treasury Bond
7.50%, due 11/15/2016 ......................... 1,500 1,689
U.S. Treasury Bond
6.25%, due 08/15/2023 ......................... 5,000 5,020
U.S. Treasury Bond
6.50%, due 11/15/2026 ......................... 10,000 10,352
U.S. Treasury Note (7b)
5.75%, due 10/31/2002 ......................... 5,000 5,002
U.S. Treasury Note (7b)
6.50%, due 05/15/2005 ......................... 5,000 5,140
------
Total U.S. Government Obligations
(cost: $ 34,154)............................................... 32,699
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (3.11%)
Federal Home Loan Bank (7b)
5.50%, due 08/13/2001 ......................... 5,000 4,973
-------
Total U.S. Government Agency Obligations
(cost: $ 5,075)................................... 4,973
-------
MORTGAGE-BACKED SECURITIES (2.95%)
Aetna Commercial Mortgage Trust
1997-Aetna Life Insurance
Company
6.71%, due 01/15/2006 ......................... 2,500 2,510
CBM Funding Corporation
7.08%, due 11/01/2007 ......................... 2,150 2,211
-------
Total Mortgage-Backed Securities
(cost: $ 4,817)................................................ 4,721
-------
ASSET-BACKED SECURITIES (7.43%)
AmeriCredit Automobile
Receivables Trust 1996-D
6.30%, due 05/12/2002 ......................... 1,500 1,499
CIT RV Trust 1998-A
6.09%, due 03/15/2012 ......................... 2,000 1,985
Citibank Credit Card Master
Trust I 1998-2
6.05%, due 01/15/2010 ......................... 2,000 1,917
CSXT Trade Receivable Master
Trust 1998-1
6.00%, due 07/26/2004 ......................... 2,000 1,955
Ford Credit Auto Owner
Trust 1999-B
5.80%, due 06/15/2002 ......................... 3,000 2,990
ICON Equipment Lease Grantor
Trust 1998-A
6.19%, due 09/15/2006 ......................... 1,558 1,547
-------
Total Asset-Backed Securities
(cost: $ 12,029)............................................... 11,893
-------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CORPORATE DEBT SECURITIES (60.02%)
AUTO REPAIR, SERVICES & PARKING (1.63%)
Ryder System, Inc.
9.25%, due 05/15/2001 ......................... $ 2,500 $ 2,613
AUTOMOTIVE (2.52%)
Daimler-Benz of North
America, Inc.
7.38%, due 09/15/2006 ......................... 2,000 2,063
Ford Motor Credit Company
6.75%, due 08/15/2008 ......................... 2,000 1,970
BUSINESS CREDIT INSTITUTIONS (2.49%)
FINOVA Capital Corporation
6.50%, due 07/28/2002 ......................... 2,000 1,995
Heller Financial, Inc.
6.44%, due 10/06/2002 ......................... 2,000 1,993
CHEMICALS & ALLIED PRODUCTS (3.03%)
DSM NV - 144A (7c)
6.75%, due 05/15/2009 ......................... 2,000 1,927
Praxair, Inc.
6.90%, due 11/01/2006 ......................... 3,000 2,920
COMMERCIAL BANKS (9.57%)
Den Danske Bank - 144A (7c)
6.38%, due 06/15/2008 ......................... 2,500 2,394
NationsBank Corporation
7.50%, due 09/15/2006 ......................... 3,000 3,083
PNC Bank Corp.
6.88%, due 07/15/2007 ......................... 2,000 1,990
Skandinaviska Enskilda
Banken - 144A (7c) (7d)
6.50%, due 12/29/2049 ......................... 2,000 1,904
Swiss Bank Corporation
6.75%, due 07/15/2005 ......................... 2,000 1,988
Swiss Bank Corporation
7.00%, due 10/15/2015 ......................... 2,000 1,930
The Bank of New York
Company, Inc.
6.63%, due 06/15/2003 ......................... 2,000 2,008
DEPARTMENT STORES (1.27%)
J. C. Penney Company, Inc.
7.60%, due 04/01/2007 ......................... 2,000 2,035
DRUG STORES & PROPRIETARY STORES (1.16%)
Rite Aid Corporation - 144A (7c)
6.00%, due 12/15/2005 ......................... 2,000 1,850
See Notes to the Financial Statements, which is an integral part of this report.
52 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL AEGON BOND (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CORPORATE DEBT SECURITIES (CONTINUED)
ELECTRIC SERVICES (2.44%)
PSEG Capital Corporation -
144A (7c)
6.25%, due 05/15/2003 ......................... $ 2,000 $ 1,950
TXU Eastern Holdings Limited -
144A (7c)
6.45%, due 05/15/2005 ......................... 2,000 1,958
ELECTRIC, GAS & SANITARY SERVICES (1.13%)
United Utilities PLC
6.88%, due 08/15/2028 ......................... 2,000 1,808
ENVIRONMENTAL SERVICES (1.56%)
Waste Management, Inc.
6.13%, due 07/15/2001 ......................... 2,500 2,488
FINANCE (11.45%)
Fannie Mae
5.25%, due 01/15/2003 ......................... 5,000 4,881
Fannie Mae
5.75%, due 06/15/2005 ......................... 5,000 4,905
Fannie Mae
5.75%, due 02/15/2008 ......................... 5,000 4,795
Fannie Mae
7.00%, due 08/25/2010 ......................... 2,000 1,983
Federal National Conversion Issue
6.00%, due 06/01/2013 ......................... 1,801 1,742
FOOD & KINDRED PRODUCTS (1.20%)
CPC International, Inc.
6.15%, due 01/15/2006 ......................... 2,000 1,925
GAS PRODUCTION & DISTRIBUTION (1.24%)
Tennessee Gas Pipeline Company
7.50%, due 04/01/2017 ......................... 2,000 1,985
MORTGAGE BANKERS AND BROKERS (3.75%)
Captiva Finance Ltd. - 144A (7c)
6.86%, due 11/30/2009 ......................... 2,000 1,980
Countrywide Home Loans, Inc.
5.62%, due 10/16/2000 ......................... 2,000 1,983
The Money Store Inc.
7.30%, due 12/01/2002 ......................... 2,000 2,030
PERSONAL CREDIT INSTITUTIONS (3.09%)
Capital One Bank
6.42%, due 11/12/1999 ......................... 500 502
Capital One Bank
6.66%, due 06/19/2000 ......................... 400 402
General Motors Acceptance
Corporation
6.85%, due 06/17/2004 ......................... 4,000 4,045
PETROLEUM REFINING (1.28%)
Texaco Capital Inc.
7.09%, due 02/01/2007 ......................... 2,000 2,048
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CORPORATE DEBT SECURITIES (CONTINUED)
PRINTING & PUBLISHING (1.25%)
Tribune Company
6.88%, due 11/01/2006 ......................... $ 2,000 $ 1,998
RAILROADS (0.64%)
CSX Corporation
7.25%, due 05/01/2004 ......................... 1,000 1,020
RUBBER & MISC. PLASTIC PRODUCTS (0.62%)
Rubbermaid Incorporated
6.60%, due 11/15/2006 ......................... 1,000 993
SAVINGS INSTITUTIONS (0.91%)
Golden State Holdings Inc.
7.13%, due 08/01/2005 ......................... 1,500 1,448
SECURITY & COMMODITY BROKERS (3.74%)
Lehman Brothers Inc.
6.38%, due 10/23/2000 ......................... 2,050 2,056
Merrill Lynch & Co., Inc.
6.56%, due 12/16/2007 ......................... 2,000 1,940
Morgan Stanley Dean Witter
and Co.
6.88%, due 03/01/2007 ......................... 2,000 1,993
TELECOMMUNICATIONS (0.93%)
MCI WORLDCOM, Inc.
6.95%, due 08/15/2006 ......................... 1,500 1,489
TRANSPORTATION & PUBLIC UTILITIES (1.19%)
General American Transportation
Corporation
6.75%, due 05/01/2009 ......................... 2,000 1,908
WHOLESALE TRADE NONDURABLE GOODS (1.93%)
SYSCO Corporation
7.25%, due 04/15/2007 ......................... 3,000 3,094
--------
Total Corporate Debt Securities
(cost: $ 97,745)................................................ 96,012
--------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (4.75%)
Farmer Mac
4.50%, due 07/01/1999 ......................... 7,600 7,600
--------
Total Short-Term U.S.
Government Obligations
(cost: $ 7,600)................................................. 7,600
--------
Total Investment Securities
(cost: $ 161,420)............................................... $157,898
SUMMARY
Investments, at market value. ...................... 98.70% $157,898
Other assets in
excess of liabilities ........................... 1.30% 2,073
-------- --------
Net assets ......................................... 100.00% $159,971
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 53
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CORPORATE DEBT SECURITIES (0.44%)
COMMUNICATION (0.44%)
Charter Communications Holdings
LLC - 144A (7c)
8.63%, due 04/01/2009 ......................... $ 14,218 $ 13,649
---------
Total Corporate Debt Securities
(cost: $ 14,175)................................................. 13,649
---------
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (88.82%)
BEVERAGES (1.57%)
Coca-Cola Company ................................. 364,909 $ 22,807
The Pepsi Bottling Group, Inc. .................... 1,103,334 25,446
BUSINESS SERVICES (0.79%)
eBay Inc. (7a) (7b) ............................... 161,902 24,447
COMMERCIAL BANKS (0.77%)
Firstar Corporation ............................... 847,147 23,720
COMMUNICATION (2.27%)
Comcast Corporation - Class A...................... 827,294 31,799
NTL Incorporated (7a) (7b) ........................ 443,235 38,201
COMMUNICATIONS EQUIPMENT (8.12%)
Nokia Oyj - Sponsored ADR ......................... 2,520,376 230,773
Tellabs, Inc. (7a) ................................ 283,802 19,174
COMPUTER & DATA PROCESSING SERVICES (16.43%)
America Online, Inc. (7a) ......................... 2,108,683 233,010
At Home Corporation -
Class A (7a) (7b) .............................. 300,157 16,190
Fiserv, Inc. (7a) ................................. 761,520 23,845
Microsoft Corporation (7a) ........................ 2,581,374 232,809
COMPUTER & OFFICE EQUIPMENT (7.02%)
Cisco Systems, Inc. (7a) .......................... 2,380,160 153,521
Dell Computer Corporation (7a) .................... 1,691,249 62,576
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.86%)
General Electric Company .......................... 1,051,860 118,860
ELECTRONIC COMPONENTS & ACCESSORIES (5.77%)
Texas Instruments Incorporated ................... 1,043,497 151,308
Xilinx, Inc. (7a) ................................ 461,909 26,444
FINANCE (1.58%)
Freddie Mac ...................................... 837,424 48,571
FOOD STORES (4.89%)
Safeway Inc. (7a) ................................ 1,159,555 57,398
The Kroger Co. (7a) .............................. 3,337,746 93,248
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (3.19%)
Lam Research Corporation (7a) ..................... 575,826 $ 26,884
Tyco International Ltd. (7b) ...................... 752,911 71,338
LUMBER & OTHER BUILDING MATERIALS (1.51%)
The Home Depot, Inc. .............................. 722,622 46,564
MEDICAL INSTRUMENTS & SUPPLIES (2.52%)
Boston Scientific Corporation (7a)................. 258,195 11,344
Medtronic, Inc. ................................... 849,710 66,171
MOTION PICTURES (2.13%)
Time Warner Inc. ................................. 893,879 65,700
PERSONAL CREDIT INSTITUTIONS (1.98%)
American Express Company .......................... 469,074 61,038
PETROLEUM & PETROLEUM PRODUCTS (1.88%)
Enron Corp. ....................................... 707,908 57,871
PHARMACEUTICALS (3.37%)
Eli Lilly and Company ............................. 664,181 47,572
Pfizer Inc. ....................................... 510,891 56,070
RADIO & TELEVISION BROADCASTING (1.89%)
Chancellor Media
Corporation (7a) (7b) .......................... 1,055,945 58,209
RETAIL TRADE (2.91%)
Amazon.com, Inc. (7a) (7b) ........................ 716,022 89,592
TELECOMMUNICATIONS (10.61%)
AT&T Corp. - Liberty Media
Group - Class A (7a) ........................... 1,602,216 58,881
Lucent Technologies Inc. (7b) ..................... 1,470,224 99,148
MCI WORLDCOM, Inc. (7a) ........................... 1,113,169 96,011
Nextel Communications, Inc. -
Class A (7a) (7b) .............................. 248,070 12,450
NEXTLINK Communications,
Inc. - Class A (7a) ............................ 68,168 5,070
Vodafone AirTouch Public Limited
Company ........................................ 279,822 55,125
VARIETY STORES (2.52%)
Costco Companies, Inc. (7a) ....................... 970,984 77,739
WATER TRANSPORTATION (1.24%)
Royal Caribbean Cruises Ltd. (7b).................. 871,473 38,127
----------
Total Common Stocks
(cost: $ 1,543,815)............................................. 2,735,051
----------
See Notes to the Financial Statements, which is an integral part of this report.
54 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (5.92%)
Fannie Mae
5.08%, due 05/15/2000 ......................... $ 20,000 $ 19,100
Farmer Mac
4.66%, due 08/05/1999 ......................... 40,454 40,271
Farmer Mac
4.93%, due 09/23/1999 ......................... 25,000 24,712
Farmer Mac
4.95%, due 10/21/1999 ......................... 50,000 49,230
Farmer Mac
5.00%, due 12/14/1999 ......................... 50,000 48,847
---------
Total Short-Term U.S.
Government Obligations
(cost: $ 182,160)................................................ 182,160
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
COMMERCIAL PAPER (3.36%)
Household Finance Corporation
5.45%, due 07/01/1999 ......................... $ 53,500 $ 53,500
UBS Finance
5.50%, due 07/01/1999 ......................... 50,000 50,000
----------
Total Commercial Paper
(cost: $ 103,500)............................................... 103,500
----------
Total Investment Securities
(cost: $ 1,843,650)............................................. $ 3,034,360
===========
SUMMARY
Investments, at market value. ..................... 98.54% $ 3,034,360
Other assets in
excess of liabilities .......................... 1.46% 45,012
--------- -----------
Net assets ........................................ 100.00% $ 3,079,372
========= ===========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 55
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GLOBAL
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
CORPORATE DEBT SECURITIES (0.25%)
COMPUTER & DATA PROCESSING SERVICES (0.25%)
Tecnost International NV (7d)
4.49%, due 06/23/2004 ......................... $ 3,039 $ 3,189
--------
Total Corporate Debt Securities
(cost: $ 5,768).................................... 3,189
--------
NUMBER OF MARKET
SHARES VALUE
--------- -----------
PREFERRED STOCKS (0.89%)
AUTOMOTIVE (0.43%)
Porsche AG ........................................ 2,331 $ 5,481
INSURANCE (0.46%)
Marschollek, Lautenschlaeger und
Partner AG ..................................... 12,064 5,748
--------
Total Preferred Stocks
(cost: $ 10,391)................................................. 11,229
--------
COMMON STOCKS (92.50%)
AIR TRANSPORTATION (0.75%)
FDX Corporation (7a) .............................. 174,140 9,447
APPAREL PRODUCTS (0.27%)
Adidas-Salomon AG ................................. 33,927 3,368
AUTOMOTIVE (0.86%)
DaimlerChrysler AG ................................ 30,025 2,601
DaimlerChrysler AG - NY
Shares (7b) .................................... 25,826 2,295
Honda Motor Company, Ltd. ......................... 140,000 5,935
BEER, WINE, & DISTILLED BEVERAGES (1.31%)
Heineken NV ....................................... 180,769 9,256
Kirin Brewery Company, Ltd. ....................... 605,000 7,249
BEVERAGES (0.44%)
The Seagram Company Ltd. .......................... 110,575 5,570
BUSINESS SERVICES (3.11%)
Capita Group PLC .................................. 113,149 1,171
eBay Inc. (7a) (7b) ............................... 34,635 5,230
Securitas AB - Class B ............................ 2,045,376 30,630
SEMA Group PLC .................................... 201,852 1,947
WPP Group PLC ..................................... 15,018 127
CHEMICALS & ALLIED PRODUCTS (1.04%)
Kao Corporation ................................... 180,000 5,057
The Estee Lauder Companies Inc. -
Class A (7b) ................................... 160,320 8,036
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (3.34%)
Argentaria, Caja Postal y Banco
Hipotecario de Espana, SA ...................... 218,297 $ 4,973
Banca di Roma (7b) ................................ 3,798,316 5,480
Banco Bilbao Vizcaya, SA .......................... 355,904 5,142
Banco Santander Central
Hispano, SA (7a) ............................... 820,402 8,545
Deutsche Pfandbrief-und
Hypothekenbank AG .............................. 67,291 6,107
HSBC Holdings PLC ................................. 96,800 3,531
Julius Baer Holding Ltd. AG -
Class B ........................................ 1,448 4,131
Lloyds TSB Group PLC .............................. 298,671 4,049
COMMUNICATION (3.16%)
Comcast Corporation - Class A ..................... 555,540 21,354
NTL Incorporated (7a) (7b) ........................ 76,850 6,624
SHAW Communications Inc. -
Class B ........................................ 35,424 1,398
United Pan-Europe
Communications NV (7a) (7b) .................... 79,911 4,335
Viacom Inc. - Class B (7a) ........................ 137,440 6,047
COMMUNICATIONS EQUIPMENT (7.63%)
Nokia Oyj ......................................... 417,128 36,565
Nokia Oyj - Sponsored ADR (7b) .................... 292,815 26,811
NTT Data Corporation .............................. 877 6,971
Royal Philips Electronics NV ...................... 125,196 12,350
Royal Philips Electronics NV - NY
Registered Shares .............................. 129,596 13,073
COMPUTER & DATA PROCESSING SERVICES (8.91%)
America Online, Inc. (7a) ......................... 38,260 4,228
Atos SA (7a) ...................................... 51,100 5,217
Cap Gemini SA (7b) ................................ 63,359 9,958
Equant - NY Registered
Shares (7a) (7b) ............................... 58,695 5,525
Equant NV (7a) .................................... 48,342 4,457
Getronics NV - 144A (7a) (7c) ..................... 94,829 3,648
Getronics NV ...................................... 267,600 10,294
Intuit Inc. (7a) .................................. 56,100 5,056
Logica PLC ........................................ 1,080,543 11,326
Microsoft Corporation (7a) ........................ 498,305 44,940
Tecnost SpA ....................................... 350,861 867
Tieto Corporation - Class B ....................... 153,054 6,377
COMPUTER & OFFICE EQUIPMENT (6.84%)
Cisco Systems, Inc. (7a) .......................... 1,129,770 72,869
EMC Corporation (7a) .............................. 59,920 3,296
Sun Microsystems, Inc. (7a) (7b) .................. 139,915 9,637
CONSTRUCTION (0.81%)
Suez Lyonnaise des Eaux ........................... 56,540 10,198
See Notes to the Financial Statements, which is an integral part of this report.
56 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GLOBAL (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.64%)
Sony Corporation ......................................... 74,700 $ 8,055
ELECTRONIC COMPONENTS & ACCESSORIES (1.07%)
ASM Lithography Holding NV (7a) 47,941 2,774
ASM Lithography Holding NV - NY
Registered Shares (7a) ................................ 38,545 2,289
Fujitsu Ltd. ............................................. 419,000 8,431
ENVIRONMENTAL SERVICES (2.30%)
Rentokil Initial PLC ..................................... 557,960 2,177
Vivendi .................................................. 329,991 26,732
FINANCE (0.38%)
Fannie Mae ............................................... 70,130 4,795
FOOD STORES (0.66%)
Carrefour SA ............................................. 32,484 4,774
The Kroger Co. (7a) ...................................... 126,240 3,527
HOLDING & OTHER INVESTMENT OFFICES (0.22%)
Amvescap PLC ............................................. 312,986 2,785
INDUSTRIAL MACHINERY & EQUIPMENT (4.57%)
Tyco International Ltd. (7b) ............................. 606,352 57,451
INSURANCE (0.72%)
Assicurazioni Generali ................................... 107,620 3,734
Zurich Allied AG ......................................... 9,400 5,352
INSURANCE AGENTS, BROKERS & SERVICE (0.26%)
Axa ...................................................... 26,822 3,272
LIFE INSURANCE (0.23%)
Prudential Corporation PLC ............................... 195,869 2,884
MACHINERY, EQUIPMENT & SUPPLIES (3.15%)
Mannesmann AG ............................................ 265,374 39,601
MANUFACTURING INDUSTRIES (1.63%)
Assa Abloy AB - Class B - Rights ......................... 1,848,064 392
Assa Abloy AB - Class B Free ............................. 1,848,064 20,049
MEDICAL INSTRUMENTS & SUPPLIES (0.51%)
Medtronic, Inc. .......................................... 82,760 6,445
MOTION PICTURES (2.75%)
Time Warner Inc. (7b) .................................... 469,725 34,524
MOTOR VEHICLES, PARTS & SUPPLIES (0.21%)
Valeo SA ................................................. 32,291 2,664
PERSONAL CREDIT INSTITUTIONS (0.77%)
American Express Company ................................. 74,125 9,646
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
PERSONAL SERVICES (0.92%)
Hays PLC ................................................. 989,881 $ 10,430
Kuoni Reisen AG - Class B ................................ 286 1,104
PETROLEUM REFINING (0.47%)
Elf Aquitaine SA ......................................... 40,614 5,960
PHARMACEUTICALS (6.62%)
American Home Products
Corporation ........................................... 58,640 3,372
Amgen Inc. (7a) (7b) ..................................... 97,620 5,943
Pfizer Inc. .............................................. 65,710 7,212
Pharmacia & Upjohn, Inc. ................................. 235,450 13,377
Roche Holding AG ......................................... 1,181 12,155
Sanofi-Synthelabo SA (7a) ................................ 119,840 5,086
Sepracor Inc. (7a) (7b) .................................. 35,845 2,912
SmithKline Beecham PLC ................................... 192,820 2,506
SmithKline Beecham PLC -
Sponsored ADR ......................................... 91,795 6,064
Takeda Chemical Industries ............................... 405,000 18,774
Warner-Lambert Company ................................... 83,543 5,796
PRINTING & PUBLISHING (1.47%)
Wolters Kluwer NV ........................................ 462,799 18,423
RADIO & TELEVISION BROADCASTING (1.20%)
Chancellor Media
Corporation (7a) ...................................... 49,310 2,718
Clear Channel
Communications, Inc. (7a) ............................. 120,815 8,329
Grupo Televisa SA - Sponsored
GDR (7a) (7b) ......................................... 91,150 4,085
RESTAURANTS (0.82%)
Compass Group PLC ........................................ 750,908 7,445
Tele Pizza, SA (7a) (7b) ................................. 555,994 2,878
RETAIL TRADE (0.70%)
Amazon.com, Inc. (7a) (7b) ............................... 35,780 4,477
Ito-Yokado Co., Ltd. ..................................... 65,000 4,351
TELECOMMUNICATIONS (21.48%)
AT&T Corp. ............................................... 308,371 17,211
AT&T Corp. - Liberty Media
Group - Class A (7a) .................................. 200,115 7,354
British Telecommunications PLC ........................... 524,298 8,785
China Telecom (Hong Kong)
Limited (7a) .......................................... 5,026,000 13,961
COLT Telecom Group PLC (7a) .............................. 354,328 7,434
Energis PLC (7a) ......................................... 562,051 13,404
Global TeleSystems Group,
Inc. (7a) (7b) ........................................ 28,985 2,348
MCI WORLDCOM, Inc. (7a) .................................. 271,260 23,396
MediaOne Group, Inc. (7a) ................................ 59,030 4,390
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 57
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GLOBAL (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Nippon Telegraph & Telephone
Corp. ......................................... 82 $ 958
NTT Mobile Communication
Network, Inc. ................................. 557 7,548
NTT Mobile Communication
Network, Inc. - New (7a) ...................... 2,228 29,824
Orange PLC (7a) .................................. 304,167 4,459
Rogers Communications Inc. -
Class B (7a) .................................. 284,738 4,540
Sprint PCS (7a) (7b) ............................. 172,065 9,829
Swisscom AG ...................................... 35,709 13,454
Telecom Argentina Stet -
France Telecom SA - Sponsored
ADR (7b) ...................................... 78,170 2,091
Telecom Italia Mobile SpA ........................ 1,023,109 6,113
Telecom Italia SpA ............................... 264,000 2,738
Telecomunicacoes Brasileiras SA -
Sponsored ADR (7b) ............................ 173,095 15,611
Telefonaktiebolaget LM Ericsson -
Class B ....................................... 130,351 4,189
Telefonaktiebolaget LM Ericsson -
Sponsored ADR ................................. 111,351 3,668
Telefonica de Argentina SA -
Sponsored ADR ................................. 114,880 3,604
Telefonica SA .................................... 517,921 24,949
Telefonica SA - Sponsored
ADR (7b) ...................................... 22,024 3,240
Telefonos de Mexico SA -
Sponsored ADR (7b) ............................ 156,915 12,681
US WEST, Inc. .................................... 44,465 2,612
Vodafone AirTouch Public Limited
Company - Sponsored ADR ....................... 79,628 15,687
Vodafone AirTouch Public
Limited Company ............................... 191,044 3,764
WHOLESALE TRADE DURABLE GOODS (0.28%)
SOFTBANK Corporation (7b) ........................ 17,200 3,483
-----------
Total Common Stocks
(cost: $ 757,078)............................................... 1,162,373
-----------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (0.28%)
Farmer Mac
4.60%, due 07/01/1999 ........................ $ 300 $ 300
U.S. Treasury Bill
4.44%, due 07/22/1999 ........................ 3,200 3,192
-----------
Total Short-Term U.S.
Government Obligations
(cost: $ 3,492)................................................. 3,492
-----------
COMMERCIAL PAPER (4.93%)
Associates First Capital Corporation
5.25%, due 07/01/1999 ........................ 62,000 62,000
Total Commercial Paper -----------
(cost: $ 62,000)................................................ 62,000
-----------
Total Investment Securities
(cost: $ 838,729)............................................... $ 1,242,283
===========
SUMMARY
Investments, at market value ..................... 98.85% $ 1,242,283
Other assets in
excess of liabilities ......................... 1.15% 14,400
---------- -----------
Net assets ....................................... 100.00% $ 1,256,683
========== ===========
INVESTMENTS BY COUNTRY:
MARKET
VALUE PERCENTAGE
---------- -----------
Canada ........................................... $ 5,938 0.48%
Finland .......................................... 42,943 3.46%
France ........................................... 73,862 5.95%
Germany .......................................... 62,906 5.06%
Hong Kong ........................................ 17,492 1.41%
Italy ............................................ 18,931 1.52%
Japan ............................................ 106,636 8.58%
Netherlands ...................................... 68,726 5.53%
Spain ............................................ 46,489 3.74%
Sweden ........................................... 55,260 4.45%
Switzerland ...................................... 36,196 2.91%
United Kingdom ................................... 84,690 6.82%
United States .................................... 622,214 50.09%
---------- ------------
Investments, at market value .................... $1,242,283 100.00%
========== ============
See Notes to the Financial Statements, which is an integral part of this report.
58 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL LKCM STRATEGIC TOTAL RETURN
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
U.S. GOVERNMENT OBLIGATIONS (5.71%)
U.S. Treasury Note (7b)
6.38%, due 09/30/2001 ................. $ 11,000 $ 11,165
U.S. Treasury Note (7b)
7.50%, due 11/15/2001 ................. 8,500 8,844
U.S. Treasury Note (7b)
6.25%, due 02/28/2002 ................. 11,500 11,656
U.S. Treasury Note
7.50%, due 02/15/2005 ................. 3,000 3,222
--------
Total U.S. Government Obligations
(cost: $ 34,946)....................................... 34,887
--------
CORPORATE DEBT SECURITIES (20.86%)
AEROSPACE (0.87%)
Lockheed Martin Corporation
7.45%, due 06/15/2004 ................. 5,200 5,315
CHEMICALS & ALLIED PRODUCTS (1.57%)
Dexter Corporation
9.25%, due 12/15/2016 ................. 143 149
The Procter & Gamble Company
5.25%, due 09/15/2003 ................. 9,875 9,480
COMMERCIAL BANKS (2.74%)
Citicorp
7.00%, due 07/01/2007 ................. 6,600 6,575
First Bank Minnesota
6.88%, due 04/01/2006 ................. 5,000 4,969
First Union Corporation
7.25%, due 02/15/2003 ................. 2,600 2,649
J.P. Morgan & Co. Incorporated
7.63%, due 09/15/2004 ................. 2,510 2,585
ELECTRIC SERVICES (2.43%)
Kentucky Utilities Company
8.55%, due 05/15/2027 ................. 4,000 4,240
Old Dominion Electric Cooperative
8.76%, due 12/01/2022 ................. 5,000 5,366
West Penn Power Company
8.88%, due 02/01/2021 ................. 5,000 5,231
ELECTRIC, GAS & SANITARY SERVICES (0.67%)
Interstate Power Company
8.63%, due 09/15/2021 ................. 3,825 4,083
ELECTRICAL GOODS (0.36%)
Avnet, Inc.
6.88%, due 03/15/2004 ................. 2,199 2,196
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CORPORATE DEBT SECURITIES (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (2.07%)
The Black & Decker Corporation
7.50%, due 04/01/2003 ................. $ 5,000 $ 5,113
Tyco International Ltd.
6.38%, due 06/15/2005 ................. 7,850 7,575
INSTRUMENTS & RELATED PRODUCTS (0.91%)
Raytheon Company
6.50%, due 07/15/2005 ................. 5,700 5,593
INSURANCE (0.43 %)
Chartwell Re Corporation
10.25 %, due 03/01/2004 ................ 2,500 2,619
PERSONAL CREDIT INSTITUTIONS (1.02 %)
Associates First Capital Corporation
6.20 %, due 05/16/2005 ................. 6,400 6,220
PERSONAL SERVICES (1.17 %)
Block Financial Corp.
6.75 %, due 11/01/2004 ................. 7,150 7,153
RAILROADS (0.15 %)
Union Pacific Corporation
8.50 %, due 01/15/2017 ................. 903 935
RUBBER & MISC. PLASTIC PRODUCTS (0.22 %)
M.A. Hanna Company
9.38 %, due 09/15/2003 ................. 1,250 1,372
TELECOMMUNICATIONS (6.25 %)
Alltel Corporation
7.25 %, due 04/01/2004 ................. 9,500 9,654
AT&T Corp. (7b)
6.00 %, due 03/15/2009 ................. 6,000 5,663
GTE Hawaiian Telephone Company
Incorporated
7.00 %, due 02/01/2006 ................. 2,075 2,067
GTE Hawaiian Telephone Company
Incorporated
7.38 %, due 09/01/2006 ................. 6,150 6,245
Lucent Technologies Inc.
6.90 %, due 07/15/2001 ................. 7,675 7,790
Vodafone AirTouch Public
Limited Company
7.00 %, due 10/01/2003 ................. 6,700 6,791
--------
Total Corporate Debt Securities
(cost: $ 130,552)....................................... 127,628
--------
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 59
<PAGE>
SCHEDULE OF INVESTMENTS
WRL LKCM STRATEGIC TOTAL RETURN (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
CONVERTIBLE BONDS (4.55 %)
ELECTRICAL GOODS (1.54 %)
Kent Electronics Corporation
4.50 %, due 09/01/2004 ..................... $ 10,916 $ 9,429
LUMBER & OTHER BUILDING MATERIALS (0.91 %)
The Home Depot, Inc.
3.25 %, due 10/01/2001 ..................... 2,000 5,560
OIL & GAS EXTRACTION (1.64 %)
Nabors Industries, Inc.
5.00 %, due 05/15/2006 ..................... 7,525 10,036
PRINTING & PUBLISHING (0.46 %)
Tribune Company
2.00 %, due 05/15/2029 ..................... 22 2,843
--------
Total Convertible Bonds
(cost: $ 23,173).............................................. 27,868
--------
NUMBER OF MARKET
SHARES VALUE
--------- --------
CONVERTIBLE PREFERRED STOCKS (1.02%)
CHEMICALS & ALLIED PRODUCTS (1.02 %)
The Estee Lauder Companies Inc. -
TRACES ..................................... 72,000 $ 6,210
--------
Total Convertible Preferred Stocks
(cost: $ 4,972 ) ............................................. 6,210
--------
COMMON STOCKS (67.13 %)
BEVERAGES (1.33 %)
PepsiCo, Inc. ................................. 210,000 8,124
BUSINESS CREDIT INSTITUTIONS (1.65 %)
The CIT Group, Inc. - Class A ................. 349,000 10,077
BUSINESS SERVICES (1.19 %)
Outdoor Systems, Inc. (7a) .................... 200,000 7,300
CHEMICALS & ALLIED PRODUCTS (3.41 %)
Colgate-Palmolive Company ..................... 98,400 9,717
The Procter & Gamble Company .................. 125,000 11,156
COMMERCIAL BANKS (4.94 %)
Compass Bancshares, Inc. ...................... 310,000 8,448
Mellon Bank Corporation ....................... 245,000 8,912
Wells Fargo & Company ......................... 300,000 12,825
COMMUNICATIONS EQUIPMENT (4.45 %)
Motorola, Inc. ................................ 150,000 14,213
Nortel Networks Corporation ................... 150,000 13,022
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (2.53 %)
Galileo International, Inc. ................... 112,000 $ 5,985
Microsoft Corporation (7a) .................... 105,000 9,470
COMPUTER & OFFICE EQUIPMENT (4.17 %)
Diebold, Incorporated ......................... 400,000 11,500
Hewlett-Packard Company ....................... 139,000 13,970
EDUCATIONAL SERVICES (0.83 %)
ITT Educational Services, Inc. (7a)............ 195,500 5,095
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.92 %)
General Electric Company ...................... 104,000 11,752
ENVIRONMENTAL SERVICES (2.02 %)
Waste Management, Inc. ........................ 230,000 12,363
FABRICATED METAL PRODUCTS (1.12 %)
The Gillette Company .......................... 167,000 6,847
FOOD & KINDRED PRODUCTS (0.99 %)
Philip Morris Companies Inc. .................. 150,000 6,028
HOLDING & OTHER INVESTMENT OFFICES (1.01 %)
Crescent Real Estate
Equities Company ........................... 260,000 6,175
INDUSTRIAL MACHINERY & EQUIPMENT (2.25 %)
Tyco International Ltd. (7b) .................. 145,000 13,739
INSURANCE (1.59 %)
American International
Group, Inc. ................................ 37,000 4,331
The Allstate Corporation ...................... 150,000 5,381
LIFE INSURANCE (1.54 %)
American General Corporation .................. 125,000 9,422
MEDICAL INSTRUMENTS & SUPPLIES (1.69 %)
Sybron International
Corporation (7a) ........................... 374,600 10,325
OIL & GAS EXTRACTION (1.49 %)
Schlumberger Limited .......................... 143,000 9,107
PAPER & ALLIED PRODUCTS (1.16 %)
Kimberly-Clark Corporation .................... 124,000 7,068
PERSONAL CREDIT INSTITUTIONS (2.10 %)
Associates First Capital
Corporation - Class A ...................... 290,000 12,851
PETROLEUM REFINING (3.87 %)
Atlantic Richfield Company .................... 90,000 7,521
See Notes to the Financial Statements, which is an integral part of this report.
60 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL LKCM STRATEGIC TOTAL RETURN (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
PETROLEUM REFINING (CONTINUED)
BP Amoco PLC - Sponsored
ADR (7b) ........................................ 67,093 $ 7,280
Exxon Corporation .................................. 114,800 8,854
PHARMACEUTICALS (6.41 %)
American Home Products
Corporation ..................................... 190,000 10,925
Pharmacia & Upjohn, Inc. ........................... 215,000 12,215
Schering-Plough Corporation ........................ 153,400 8,130
SmithKline Beecham PLC -
Sponsored ADR ................................... 120,000 7,928
PRINTING & PUBLISHING (2.56 %)
A. H. Belo Corporation - Class A ................... 300,800 5,922
Harte-Hanks, Inc. .................................. 359,200 9,743
RADIO & TELEVISION BROADCASTING (2.31 %)
CBS Corporation (7a) (7b) .......................... 325,000 14,117
RADIO, TELEVISION, & COMPUTER STORES (1.51 %)
Tandy Corporation .................................. 188,800 9,228
REAL ESTATE (0.87 %)
Starwood Hotels & Resorts
Worldwide, Inc. ................................. 175,000 5,348
TELECOMMUNICATIONS (5.15 %)
Alltel Corporation .................................. 216,900 15,508
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Lucent Technologies Inc. ........................... 46,000 $ 3,102
MCI WORLDCOM, Inc. (7a) ............................ 149,000 12,851
WHOLESALE TRADE NONDURABLE GOODS (1.07 %)
U.S. Foodservice (7a) .............................. 152,800 6,513
---------
Total Common Stocks
(cost: $ 285,308).............................................. 410,388
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM OBLIGATIONS (0.64 %)
Investors Bank & Trust
Company (7e)
4.25 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 3,939 on
07/01/1999 ................................... $ 3,938 $ 3,938
---------
Total Short-Term Obligations
(cost: $ 3,938).............................................. 3,938
---------
Total Investment Securities
(cost: $ 482,889)............................................. $ 610,919
=========
SUMMARY
Investments, at market value. ................... 99.91% $ 610,919
Other assets in
excess of liabilities ........................ 0.09% 560
--------- ---------
Net assets ...................................... 100.00% $ 611,479
========= =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 61
<PAGE>
SCHEDULE OF INVESTMENTS
WRL VKAM EMERGING GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (94.07 %)
AEROSPACE (0.31 %)
Gulfstream Aerospace
Corporation (7a) ................................ 49,500 $ 3,344
AIR TRANSPORTATION (0.47 %)
Southwest Airlines Co. ............................. 162,500 5,058
AMUSEMENT & RECREATION SERVICES (0.48 %)
Mandalay Resort Group (7a) ......................... 100,000 2,113
SFX Entertainment, Inc. -
Class A (7a) .................................... 46,000 3,062
APPAREL & ACCESSORY STORES (3.24 %)
Abercrombie & Fitch Co. -
Class A (7a) .................................... 270,000 12,960
American Eagle
Outfitters, Inc. (7a) ........................... 110,000 5,005
AnnTaylor, Inc. (7a) ............................... 80,000 3,600
Intimate Brands, Inc. (7b) ......................... 157,500 7,462
Ross Stores, Inc. .................................. 35,000 1,763
The TJX Companies, Inc. ............................ 117,000 3,898
APPAREL PRODUCTS (0.38 %)
Tommy Hilfiger Corporation (7a) .................... 55,000 4,043
AUTO REPAIR, SERVICES & PARKING (0.23 %)
The Hertz Corporation - Class A .................... 40,000 2,480
AUTOMOTIVE (0.60 %)
Gentex Corporation (7a) ............................ 55,000 1,540
Harley-Davidson, Inc. .............................. 90,000 4,894
BUSINESS CREDIT INSTITUTIONS (0.65 %)
Providian Financial Corporation .................... 75,000 7,013
BUSINESS SERVICES (2.09 %)
Omnicom Group Inc. ................................. 129,000 10,320
Outdoor Systems, Inc. (7a) ......................... 107,500 3,924
TMP Worldwide Inc. (7a) ............................ 70,000 4,445
Valassis Communications, Inc. (7a).................. 100,000 3,663
COMMERCIAL BANKS (1.92 %)
Concord EFS, Inc. (7a) (7b) ........................ 101,400 4,290
First Tennessee National
Corporation ..................................... 65,000 2,490
Firstar Corporation ................................ 240,000 6,720
Northern Trust Corporation ......................... 48,000 4,656
Old Kent Financial Corporation ..................... 57,750 2,418
COMMUNICATION (3.56 %)
Adelphia Communications
Corporation - Class A (7a) (7b) ................. 40,000 2,545
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
COMMUNICATION (CONTINUED)
Cablevision Systems Corporation -
Class A (7a) (7b) ............................... 128,000 $ 8,960
Comcast Corporation - Class A ...................... 150,000 5,766
EchoStar Communications
Corporation (7a) (7b) ........................... 100,000 15,344
Level 3 Communications, Inc. (7a)................... 92,000 5,526
COMMUNICATIONS EQUIPMENT (7.44 %)
ANTEC Corporation (7a) ............................. 60,000 1,924
Comverse Technology, Inc. (7a) ..................... 175,000 13,213
General Instrument
Corporation (7a) ................................ 80,000 3,400
Motorola, Inc. ..................................... 85,000 8,054
Nokia Oyj - Sponsored ADR .......................... 205,000 18,770
Nortel Networks Corporation ........................ 115,000 9,983
QUALCOMM
Incorporated (7a) (7b) .......................... 170,000 24,394
COMPUTER & DATA PROCESSING SERVICES (12.83 %)
Adobe Systems Incorporated ......................... 90,000 7,394
Affiliated Computer Services, Inc. -
Class A (7a) (7b) ............................... 25,000 1,266
America Online, Inc. (7a) .......................... 190,000 20,995
Broadvision, Inc. (7a) ............................. 30,000 2,213
Citrix Systems, Inc. (7a) .......................... 110,000 6,215
Clarify Inc. (7a) .................................. 60,000 2,475
Compuware Corporation (7a) ......................... 117,100 3,725
CSG Systems
International, Inc. (7a) ........................ 141,000 3,692
Fiserv, Inc. (7a) .................................. 75,000 2,348
InfoSpace.com, Inc. (7a) ........................... 40,000 1,880
International Network Services (7a) ................ 97,500 3,937
Intuit Inc. (7a) ................................... 40,000 3,605
Macromedia, Inc. (7a) .............................. 105,000 3,701
Mercury Interactive
Corporation (7a) ................................ 80,000 2,830
Microsoft Corporation (7a) ......................... 40,000 3,608
MindSpring
Enterprises, Inc. (7a) (7b) ..................... 140,000 6,204
Network Appliance, Inc. (7a) ....................... 195,000 10,896
Novell, Inc. (7a) (7b) ............................. 160,000 4,240
Rational Software Corporation (7a) ................. 205,000 6,752
RealNetworks, Inc. (7a) ............................ 50,000 3,444
Sapient Corporation (7a) (7b) ...................... 30,000 1,699
Siebel Systems, Inc. (7a) .......................... 150,000 9,956
SunGard Data
Systems Inc. (7a) (7b) .......................... 70,000 2,415
VeriSign, Inc. (7a) ................................ 110,000 9,488
VERITAS Software
Corporation (7a) (7b) ........................... 131,500 12,484
See Notes to the Financial Statements, which is an integral part of this report.
62 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL VKAM EMERGING GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (3.94 %)
Adaptec, Inc. (7a) ................................. 75,000 $ 2,648
Cisco Systems, Inc. (7a) ........................... 130,966 8,447
Electronics for Imaging, Inc. (7a) ................. 125,000 6,422
EMC Corporation (7a) ............................... 185,000 10,175
Lexmark International Group,
Inc. - Class A (7a) ............................. 220,000 14,534
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.17 %)
Gemstar International Group
Limited (7a) .................................... 270,000 17,618
Maytag Corporation (7b) ............................ 80,000 5,575
ELECTRONIC COMPONENTS & ACCESSORIES (17.04 %)
Altera Corporation (7a) ............................ 245,000 9,019
Analog Devices, Inc. (7a) .......................... 165,000 8,281
Applied Micro Circuits
Corporation (7a) ................................ 55,000 4,524
Broadcom Corporation -
Class A (7a) .................................... 168,000 24,286
Conexant Systems, Inc. (7a) ........................ 250,000 14,516
Flextronics International Ltd. (7a)................. 110,000 6,105
Jabil Circuit, Inc. (7a) ........................... 95,000 4,287
LSI Logic Corporation (7a) ......................... 360,000 16,605
PMC-Sierra, Inc. (7a) .............................. 125,000 7,367
QLogic Corporation (7a) ............................ 43,400 5,729
RF Micro Devices, Inc. (7a) ........................ 100,000 7,463
SDL, Inc. (7a) ..................................... 55,000 2,808
Solectron Corporation (7a) ......................... 35,000 2,334
STMicroelectronics NV -
NY Registered Shares (7a) (7b) .................. 120,000 8,325
Taiwan Semiconductor
Manufacturing Company Ltd. -
Sponsored ADR (7a) (7b) ......................... 75,000 2,550
Texas Instruments Incorporated ..................... 75,000 10,875
Uniphase Corporation (7a) (7b) ..................... 135,000 22,409
Vitesse Semiconductor
Corporation (7a) ................................ 195,000 13,150
Xilinx, Inc. (7a) .................................. 205,000 11,736
FABRICATED METAL PRODUCTS (0.43 %)
Danaher Corporation ................................ 80,000 4,650
FURNITURE & HOME FURNISHINGS (1.22 %)
Bed Bath & Beyond Inc. (7a) ........................ 180,000 6,930
Linens 'N Things, Inc. (7a) ........................ 140,000 6,125
HEALTH SERVICES (0.06 %)
TLC The Laser Center Inc. (7a) ..................... 13,300 638
INDUSTRIAL MACHINERY & EQUIPMENT (1.74 %)
Applied Materials, Inc. (7a) ....................... 86,000 6,353
Tyco International Ltd. (7b) ....................... 130,000 12,318
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (2.09 %)
Bausch & Lomb Incorporated ......................... 95,000 $ 7,268
Teradyne, Inc. (7a) ................................ 115,000 8,251
Waters Corporation (7a) ............................ 130,000 6,906
INSURANCE AGENTS, BROKERS & SERVICE (0.21 %)
Marsh & McLennan
Companies, Inc. ................................. 30,000 2,265
LUMBER & OTHER BUILDING MATERIALS (1.50 %)
Lowe's Companies, Inc. ............................. 125,000 7,086
The Home Depot, Inc. (7b) .......................... 140,000 9,021
LUMBER & WOOD PRODUCTS (0.16 %)
Weyerhaeuser Company ............................... 25,000 1,719
MANUFACTURING INDUSTRIES (0.38 %)
Hasbro, Inc. ....................................... 145,000 4,051
MEDICAL INSTRUMENTS & SUPPLIES (2.20 %)
Biomet, Inc. ....................................... 40,000 1,590
Boston Scientific
Corporation (7a) (7b) ........................... 100,000 4,394
MiniMed, Inc. (7a) ................................. 30,000 2,308
St. Jude Medical, Inc. (7a) ........................ 50,000 1,781
VISX, Incorporated (7a) ............................ 170,000 13,462
METAL CANS & SHIPPING CONTAINERS (0.20 %)
Ball Corporation ................................... 50,000 2,113
MISC. GENERAL MERCHANDISE STORES (0.20 %)
BJ's Wholesale Club, Inc. (7a) ..................... 70,000 2,104
MOTION PICTURES (0.43 %)
CNET, Inc. (7a) (7b) ............................... 80,000 4,610
OIL & GAS EXTRACTION (0.49 %)
Apache Corporation ................................. 115,000 4,485
Vastar Resources, Inc. ............................. 15,000 787
PAPER & ALLIED PRODUCTS (0.24 %)
Willamette Industries, Inc. ........................ 55,000 2,533
PERSONAL CREDIT INSTITUTIONS (1.27 %)
Capital One Financial Corporation 208,500 11,611
Metris Companies Inc. .............................. 50,000 2,038
PETROLEUM REFINING (0.31 %)
Amerada Hess Corporation ........................... 55,000 3,273
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 63
<PAGE>
SCHEDULE OF INVESTMENTS
WRL VKAM EMERGING GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (5.72 %)
Allergan, Inc. ................................... 125,000 $ 13,875
Andrx Corporation (7a) (7b) ...................... 40,000 3,085
Biogen, Inc. (7a) ................................ 215,000 13,827
IDEC Pharmaceuticals
Corporation (7a) (7b) ......................... 60,000 4,624
Immunex Corporation (7a) (7b) .................... 115,000 14,655
MedImmune, Inc. (7a) (7b) ........................ 165,000 11,179
RADIO & TELEVISION BROADCASTING (3.13 %)
CBS Corporation (7a) ............................. 110,000 4,778
Clear Channel
Communications, Inc. (7a) ..................... 274,150 18,899
Hispanic Broadcasting
Corporation (7a) .............................. 30,000 2,276
Univision Communications Inc. -
Class A (7a) .................................. 115,000 7,590
RADIO, TELEVISION, & COMPUTER STORES (7.36 %)
Best Buy Co., Inc. (7a) .......................... 606,000 40,904
Circuit City Stores - Circuit
City Group .................................... 245,000 22,784
Tandy Corporation ................................ 310,000 15,151
RESEARCH & TESTING SERVICES (0.18 %)
Cree Research, Inc. (7a) (7b) .................... 25,000 1,923
RESTAURANTS (0.94 %)
Brinker International, Inc. (7a) ................. 60,000 1,631
Darden Restaurants, Inc. ......................... 80,000 1,745
Outback Steakhouse, Inc. (7a) .................... 170,000 6,683
RETAIL TRADE (1.16 %)
Staples, Inc. (7a) ............................... 200,000 6,188
Tiffany & Co. .................................... 65,000 6,273
RUBBER & MISC. PLASTIC PRODUCTS (0.18 %)
NIKE, Inc. - Class B ............................. 30,000 1,899
SECURITY & COMMODITY BROKERS (0.28 %)
Knight/Trimark Group, Inc. -
Class A (7a) (7b) ............................. 49,200 2,967
STONE, CLAY & GLASS PRODUCTS (0.26 %)
Corning Incorporated ............................. 40,000 2,805
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (3.65 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) .......................... 260,500 $ 9,573
CenturyTel, Inc. ................................. 63,000 2,504
Exodus Communications,
Inc. (7a) (7b) ................................ 55,000 6,597
Global Crossing Ltd. (7a) (7b) ................... 29,123 1,240
Global TeleSystems Group,
Inc. (7a) (7b) ................................ 45,000 3,645
McLeodUSA Incorporated -
Class A (7a) .................................. 33,600 1,848
Metromedia Fiber Network,
Inc. (7a) (7b) ................................ 310,000 11,141
Nextel Communications, Inc. -
Class A (7a) (7b) ............................. 50,000 2,509
Vodafone AirTouch Public Limited
Company - Sponsored ADR ....................... (7h) (7g)
VARIETY STORES (0.73 %)
Consolidated Stores
Corporation (7a) .............................. 90,000 2,430
Family Dollar Stores, Inc. ....................... 226,000 5,424
---------
Total Common Stocks
(cost: $ 703,442)............................................. 1,007,612
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (5.59 %)
Farmer Mac
4.60 %, due 07/01/1999 ........................ $ 59,860 $ 59,860
----------
Total Short-Term U.S.
Government Obligations
(cost: $ 59,860)............................................... 59,860
----------
Total Investment Securities
(cost: $ 763,302).............................................. $1,067,472
==========
SUMMARY
Investments, at market value ..................... 99.66% $1,067,472
Other assets in
excess of liabilities ......................... 0.34% 3,599
-------- ----------
Net assets ....................................... 100.00% $1,071,071
======== ==========
See Notes to the Financial Statements, which is an integral part of this report.
64 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL ALGER AGGRESSIVE GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (98.65 %)
AEROSPACE (0.50 %)
United Technologies Corporation .................... 50,600 $ 3,627
APPAREL & ACCESSORY STORES (0.98 %)
Abercrombie & Fitch Co. -
Class A (7a) .................................... 147,600 7,085
BUSINESS SERVICES (2.40 %)
eBay Inc. (7a) (7b) ................................ 90,900 13,726
Omnicom Group Inc. ................................. 45,300 3,624
COMMERCIAL BANKS (0.94 %)
Bank of America Corporation ........................ 92,400 6,774
COMMUNICATION (7.36 %)
broadcast.com Inc. (7a) (7b) ....................... 216,300 28,889
Comcast Corporation -
Class A (7b) .................................... 453,600 17,435
Cox Communications, Inc. -
Class A (7a) (7b) ............................... 188,900 6,954
COMMUNICATIONS EQUIPMENT (3.20 %)
Motorola, Inc. ..................................... 159,100 15,075
Nokia Oyj - Sponsored ADR .......................... 88,800 8,131
COMPUTER & DATA PROCESSING SERVICES (13.39 %)
America Online, Inc. (7a) .......................... 240,600 26,585
At Home Corporation -
Class A (7a) (7b) ............................... 349,116 18,830
IMS Health Incorporated ............................ 373,300 11,666
Microsoft Corporation (7a) ......................... 360,100 32,476
RealNetworks, Inc. (7a) ............................ 45,400 3,127
Yahoo! Inc. (7a) ................................... 24,600 4,237
COMPUTER & OFFICE EQUIPMENT (8.61 %)
Cisco Systems, Inc. (7a) ........................... 408,500 26,347
Dell Computer Corporation (7a) ..................... 333,400 12,336
International Business Machines
Corporation ..................................... 53,500 6,915
Sun Microsystems, Inc. (7a) (7b) ................... 243,200 16,750
CONSTRUCTION (0.99 %)
Halliburton Company ................................ 158,200 7,159
ELECTRONIC COMPONENTS & ACCESSORIES (9.31 %)
Altera Corporation (7a) ............................ 178,200 6,560
ASM Lithography Holding NV (7a) 146,600 8,704
Linear Technology
Corporation (7b) ................................ 152,000 10,222
Micron Technology, Inc. (7a) (7b)................... 109,000 4,394
Texas Instruments Incorporated ..................... 118,100 17,125
Xilinx, Inc. (7a) .................................. 357,400 20,461
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
FOOD STORES (2.13 %)
Safeway Inc. (7a) .................................. 119,400 $ 5,910
The Kroger Co. (7a) ................................ 341,800 9,549
INDUSTRIAL MACHINERY & EQUIPMENT (5.96 %)
Applied Materials, Inc. (7a) ....................... 286,100 21,136
Tyco International Ltd. (7b) ....................... 232,674 22,046
INSTRUMENTS & RELATED PRODUCTS (1.59 %)
Teradyne, Inc. (7a) ................................ 160,400 11,509
INSURANCE (4.84 %)
American International
Group, Inc. ..................................... 84,200 9,857
Citigroup Inc. ..................................... 530,250 25,187
LUMBER & OTHER BUILDING MATERIALS (3.06 %)
The Home Depot, Inc. (7b) .......................... 344,500 22,199
MOTION PICTURES (1.03 %)
CNET, Inc. (7a) (7b) ............................... 129,700 7,474
OIL & GAS EXTRACTION (0.86 %)
Nabors Industries, Inc. (7a) (7b) .................. 256,000 6,256
PERSONAL CREDIT INSTITUTIONS (0.96 %)
American Express Company ........................... 53,700 6,988
PHARMACEUTICALS (2.69 %)
Amgen Inc. (7a) .................................... 197,100 11,998
Schering-Plough Corporation ........................ 141,900 7,521
RADIO & TELEVISION BROADCASTING (2.59 %)
Capstar Broadcasting Corporation -
Class A (7a) .................................... 139,700 3,824
Clear Channel
Communications, Inc. (7a) ....................... 216,723 14,940
RADIO, TELEVISION, & COMPUTER STORES (1.57 %)
Best Buy Co., Inc. (7a) ............................ 168,400 11,367
RETAIL TRADE (3.19 %)
Amazon.com, Inc. (7a) (7b) ......................... 116,500 14,577
Office Depot, Inc. (7a) ............................ 232,050 5,120
Staples, Inc. (7a) ................................. 110,700 3,425
SECURITY & COMMODITY BROKERS (5.28 %)
Morgan Stanley Dean
Witter and Co. .................................. 199,500 20,449
Paine Webber Group Inc. ............................ 128,800 6,021
The Charles Schwab Corporation ..................... 107,500 11,812
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 65
<PAGE>
SCHEDULE OF INVESTMENTS
WRL ALGER AGGRESSIVE GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (10.92 %)
Frontier Corporation .............................. 122,800 $ 7,245
Global TeleSystems
Group, Inc. (7a) (7b) .......................... 52,500 4,253
Lucent Technologies Inc. .......................... 231,660 15,623
MCI WORLDCOM, Inc. (7a) ........................... 256,700 22,140
McLeodUSA Incorporated -
Class A (7a) ................................... 84,000 4,620
Nextel Communications, Inc. -
Class A (7a) (7b) .............................. 223,000 11,192
NorthPoint Communications
Group, Inc. (7a) ............................... 113,700 4,150
Rhythms NetConnections
Inc. (7a) (7b) ................................. 168,600 9,842
VARIETY STORES (4.07 %)
Costco Companies, Inc. (7a) ....................... 142,600 11,417
Wal-Mart Stores, Inc. ............................. 374,400 18,065
WATER TRANSPORTATION (0.23 %)
Carnival Corporation .............................. 35,000 1,698
--------
Total Common Stocks
(cost: $ 507,017)............................................. 714,624
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM OBLIGATIONS (1.77 %)
Investors Bank & Trust
Company (7e)
4.25 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 12,834 on
07/01/1999 .................................... $ 12,833 $ 12,833
---------
Total Short-Term Obligations
(cost: $ 12,833).............................................. 12,833
---------
Total Investment Securities
(cost: $ 519,850)............................................. $ 727,457
=========
SUMMARY
Investments, at market value .................... 100.42% $ 727,457
Liabilities in
excess of other assets ........................ (0.42)% (3,074)
-------- ---------
Net assets ...................................... 100.00% $ 724,383
======== =========
See Notes to the Financial Statements, which is an integral part of this report.
66 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL AEGON BALANCED
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
U.S. GOVERNMENT OBLIGATIONS (25.65 %)
U.S. Treasury Bond (7b)
7.25 %, due 05/15/2016 ......................... $ 3,000 $ 3,298
U.S. Treasury Bond
7.50 %, due 11/15/2016 ......................... 3,000 3,378
U.S. Treasury Bond (7b)
6.13 %, due 11/15/2027 ......................... 3,000 2,976
U.S. Treasury Bond (7b)
5.25 %, due 11/15/2028 ......................... 5,000 4,424
U.S. Treasury Note
7.25 %, due 08/15/2004 ......................... 3,000 3,180
U.S. Treasury Note
6.50 %, due 05/15/2005 ......................... 2,500 2,570
U.S. Treasury Note (7b)
6.50 %, due 10/15/2006 ......................... 3,000 3,096
U.S. Treasury Note (7b)
6.13 %, due 08/15/2007 ......................... 3,000 3,031
U.S. Treasury Note (7b)
5.50 %, due 02/15/2008 ......................... 3,000 2,916
----------
Total U.S. Government Obligations
(cost: $ 29,488)................................................ 28,869
----------
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (65.29 %)
BEVERAGES (3.42 %)
PepsiCo, Inc. ..................................... 99,500 $ 3,849
COMMERCIAL BANKS (8.80 %)
Bank of America Corporation ....................... 42,000 3,079
J.P. Morgan & Co. Incorporated .................... 27,000 3,794
Wells Fargo & Company ............................. 71,000 3,035
COMPUTER & OFFICE EQUIPMENT (6.80 %)
Hewlett-Packard Company ........................... 35,000 3,518
Sun Microsystems, Inc. (7a) ....................... 60,000 4,132
ELECTRIC SERVICES (1.11 %)
Endesa SA - Sponsored ADR (7b) .................... 59,000 1,254
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.61 %)
General Electric Company .......................... 26,000 2,938
ENVIRONMENTAL SERVICES (3.27 %)
Waste Management, Inc. ............................ 68,500 3,682
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
FINANCE (5.68 %)
Fannie Mae ........................................ 44,000 $ 3,009
SLM Holding Corporation ........................... 74,000 3,390
INDUSTRIAL MACHINERY & EQUIPMENT (3.45 %)
Tyco International Ltd. (7b) ...................... 41,000 3,884
INSTRUMENTS & RELATED PRODUCTS (2.81 %)
Raytheon Company - Class B ........................ 45,000 3,167
INSURANCE (6.75 %)
American International
Group, Inc. .................................... 32,000 3,746
Citigroup Inc. .................................... 81,000 3,848
PHARMACEUTICALS (8.96 %)
Abbott Laboratories ............................... 53,000 2,412
Johnson & Johnson ................................. 39,000 3,822
Merck & Co., Inc. ................................. 52,000 3,848
SAVINGS INSTITUTIONS (2.42 %)
Washington Mutual, Inc. ........................... 77,000 2,724
TELECOMMUNICATIONS (5.85 %)
AT&T Corp. (7b) ................................... 45,000 2,512
Frontier Corporation .............................. 69,000 4,070
TRUCKING & WAREHOUSING (0.87 %)
Heartland Express, Inc. (7a) ...................... 60,000 983
VARIETY STORES (2.49 %)
Wal-Mart Stores, Inc. ............................. 58,000 2,799
----------
Total Common Stocks
(cost: $ 55,378)................................................ 73,495
----------
Total Investment Securities
(cost: $ 84,866)................................................ $ 102,364
==========
SUMMARY
Investments, at market value ...................... 90.94 % $ 102,364
Other assets in
excess of liabilities .......................... 9.06 % 10,201
--------- ----------
Net assets ........................................ 100.00 % $ 112,565
========= ==========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 67
<PAGE>
SCHEDULE OF INVESTMENTS
WRL FEDERATED GROWTH & INCOME
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
CONVERTIBLE PREFERRED STOCKS (3.90 %)
FOOD & KINDRED PRODUCTS (1.58 %)
Ralston Purina Company ............................ 29,000 $ 1,349
GAS PRODUCTION & DISTRIBUTION (1.07 %)
K N Energy, Inc. - PEPS ........................... 35,500 919
SECURITY & COMMODITY BROKERS (1.25 %)
Merrill Lynch & Co., Inc.
IMC Global Inc. - STRYPES ...................... 52,100 1,065
---------
Total Convertible Preferred Stocks
(cost: $ 4,089)................................................. 3,333
---------
COMMON STOCKS (94.81 %)
AUTOMOTIVE (0.92 %)
CLARCOR Inc. ...................................... 41,000 787
BUSINESS SERVICES (1.78 %)
Grey Advertising Inc. ............................. 2,500 833
Pittston Brink's Group ............................ 25,900 693
COMMERCIAL BANKS (0.94 %)
BancWest Corporation .............................. 21,700 806
CONSTRUCTION (0.88 %)
Chicago Bridge & Iron Company
NV - NY Shares ................................. 54,200 755
DRUG STORES & PROPRIETARY STORES (1.01 %)
Longs Drug Stores Corporation ..................... 25,000 864
ELECTRIC SERVICES (10.09 %)
BEC Energy (7b) ................................... 29,300 1,209
DQE, Inc. ......................................... 29,500 1,184
Energy East Corporation ........................... 29,700 772
Florida Progress Corporation ...................... 27,500 1,136
OGE Energy Corp. .................................. 43,500 1,033
Pinnacle West Capital Corporation.................. 21,000 845
Puget Sound Energy, Inc. .......................... 29,300 703
TECO Energy, Inc. ................................. 39,400 896
The United Illuminating Company.................... 20,000 849
ELECTRIC, GAS & SANITARY SERVICES (5.90 %)
American States Water Company ..................... 33,300 945
E' Town Corporation ............................... 18,900 865
NiSource Inc. ..................................... 63,300 1,634
Rochester Gas and Electric
Corporation .................................... 60,300 1,602
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
FOOD & KINDRED PRODUCTS (2.95 %)
General Mills, Inc. ............................... 21,500 $ 1,727
McCormick & Company,
Incorporated ................................... 25,200 795
FOOD STORES (1.51 %)
Albertson's Inc. .................................. 25,000 1,289
FURNITURE & FIXTURES (1.39 %)
Hillenbrand Industries, Inc. ...................... 27,500 1,189
GAS PRODUCTION & DISTRIBUTION (16.52 %)
AGL Resources Inc. ................................ 68,800 1,269
Atmos Energy Corporation .......................... 38,100 953
Connecticut Energy Corporation .................... 15,900 613
El Paso Energy Corporation ........................ 22,200 781
Energen Corporation ............................... 45,300 844
KeySpan Corporation ............................... 74,900 1,974
Laclede Gas Company ............................... 40,700 946
MCN Energy Group Inc. ............................. 39,900 828
National Fuel Gas Company ......................... 18,600 902
New Jersey Resources Corporation................... 46,700 1,747
Nicor Inc. ........................................ 22,900 872
Questar Corporation ............................... 43,300 828
Southwest Gas Corporation ......................... 30,500 873
WICOR, Inc. ....................................... 25,000 698
HOLDING & OTHER INVESTMENT OFFICES (12.72 %)
Apartment Investment and
Management Company -
Class A (7b) ................................... 20,600 881
Archstone Communities Trust ....................... 36,300 796
AvalonBay Communities, Inc. (7b)................... 45,667 1,689
BRE Properties, Inc. - Class A .................... 26,100 677
Camden Property Trust ............................. 37,100 1,030
Equity Residential Properties Trust................ 17,743 800
Essex Property Trust, Inc. ........................ 26,600 941
Gables Residential Trust .......................... 70,600 1,702
Health Care Property
Investors, Inc. ................................ 30,500 881
Liberty Property Trust ............................ 27,200 677
Prentiss Properties Trust ......................... 34,100 801
INDUSTRIAL MACHINERY & EQUIPMENT (3.29 %)
Flowserve Corporation ............................. 51,500 975
Pall Corporation .................................. 44,400 985
York International Corporation .................... 20,000 856
See Notes to the Financial Statements, which is an integral part of this report.
68 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL FEDERATED GROWTH & INCOME (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (0.94 %)
Beckman Coulter, Inc. ............................. 16,600 $ 807
INSURANCE (3.97 %)
Chicago Title Corporation ......................... 24,500 874
Loews Corporation ................................. 10,000 791
Old Republic International
Corporation .................................... 49,200 852
SAFECO Corporation ................................ 20,000 883
INSURANCE AGENTS, BROKERS & SERVICE (0.97 %)
Arthur J. Gallagher & Co. ......................... 16,700 827
LUMBER & WOOD PRODUCTS (2.09 %)
Georgia-Pacific Corporation ....................... 35,000 884
Louisiana-Pacific Corporation ..................... 38,000 903
MEDICAL INSTRUMENTS & SUPPLIES (1.13 %)
DENTSPLY International Inc. ....................... 34,500 966
METAL CANS & SHIPPING CONTAINERS (0.74 %)
Crown Cork & Seal Company, Inc..................... 22,200 633
METAL MINING (1.76 %)
Barrick Gold Corporation (7b) ..................... 77,600 1,504
MINING (1.36 %)
USEC Inc. ......................................... 78,000 1,160
OIL & GAS EXTRACTION (1.17 %)
Kerr-McGee Corporation ............................ 20,000 1,004
PAPER & ALLIED PRODUCTS (0.93 %)
Westvaco Corporation .............................. 27,500 798
PETROLEUM REFINING (3.16 %)
Pennzoil-Quaker State
Company (7b) ................................... 125,100 1,876
Ultramar Diamond Shamrock
Corporation .................................... 38,000 829
PHARMACEUTICALS (0.78 %)
Mylan Laboratories Inc. ........................... 25,000 663
PRIMARY METAL INDUSTRIES (1.23 %)
Worthington Industries, Inc. ...................... 64,000 1,052
PRINTING & PUBLISHING (2.21 %)
Banta Corporation ................................. 34,900 733
Knight-Ridder, Inc. (7b) .......................... 21,000 1,154
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
REAL ESTATE (5.69 %)
AMB Property Corporation (7b) ..................... 59,400 $ 1,396
CenterPoint Properties
Corporation .................................... 22,200 813
Post Properties, Inc. (7b) ........................ 24,900 1,021
ProLogis Trust .................................... 81,000 1,639
RESTAURANTS (1.39 %)
Bob Evans Farms, Inc. ............................. 60,000 1,193
SAVINGS INSTITUTIONS (1.02 %)
Washington Federal, Inc. .......................... 39,000 875
TELECOMMUNICATIONS (1.35 %)
US WEST, Inc. ..................................... 19,700 1,157
TEXTILE MILL PRODUCTS (1.72 %)
Sara Lee Corporation .............................. 65,000 1,475
WATER TRANSPORTATION (1.30 %)
Alexander & Baldwin, Inc. ......................... 50,000 1,113
---------
Total Common Stocks
(cost: $ 78,417)................................................ 81,105
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM OBLIGATIONS (2.71 %)
Greenwich Capital
Markets, Inc. (7e)
4.78 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 2,316 on
07/01/1999 ..................................... $ 2,316 $ 2,316
---------
Total Short-Term Obligations
(cost: $ 2,316)................................................. 2,316
---------
Total Investment Securities
(cost: $ 84,822)................................................ $ 86,754
=========
SUMMARY
Investments, at market value ...................... 101.42 % $ 86,754
Liabilities in
excess of other assets ......................... (1.42)% (1,214)
---------- ---------
Net assets ........................................ 100.00 % $ 85,540
========== =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 69
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DEAN ASSET ALLOCATION
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
U.S. GOVERNMENT OBLIGATIONS (8.82 %)
U.S. Treasury Note (7b)
5.50 %, due 01/31/2003 ......................... $ 10,000 $ 9,913
U.S. Treasury Note (7b)
5.88 %, due 02/15/2004 ......................... 10,000 10,030
U.S. Treasury Note
6.50 %, due 05/15/2005 ......................... 10,000 10,281
--------
Total U.S. Government Obligations
(cost: $ 30,588)................................................. 30,224
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS (5.13 %)
Federal Home Loan Bank
5.62 %, due 02/25/2004 ......................... 9,000 8,696
Federal Home Loan Bank
6.10 %, due 04/29/2004 ......................... 9,000 8,888
--------
Total U.S. Government Agency Obligations
(cost: $ 17,968).................................................. 17,584
--------
CORPORATE DEBT SECURITIES (23.80 %)
AUTO REPAIR, SERVICES & PARKING (2.64 %)
PHH Corporation
7.02 %, due 11/09/2001 ......................... 9,000 9,049
CHEMICALS & ALLIED PRODUCTS (2.27 %)
E. I. du Pont de Nemours
and Company
6.50 %, due 09/01/2002 ......................... 7,750 7,789
ELECTRIC SERVICES (4.77 %)
Tennessee Valley Authority
6.38 %, due 06/15/2005 ......................... 8,000 8,023
The Washington Water
Power Company
5.99 %, due 12/10/2007 ......................... 9,000 8,340
FINANCE (7.95 %)
Fannie Mae
5.25 %, due 01/15/2003 ......................... 8,000 7,811
Fannie Mae
6.97 %, due 09/04/2007 ......................... 10,000 9,919
Freddie Mac
5.00 %, due 01/15/2004 ......................... 10,000 9,532
PERSONAL CREDIT INSTITUTIONS (2.58 %)
Commercial Credit Company
6.50 %, due 08/01/2004 ......................... 9,000 8,854
RADIO & TELEVISION BROADCASTING (1.41 %)
Cox Radio, Inc.
6.38 %, due 05/15/2005 ........................ 5,000 4,825
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CORPORATE DEBT SECURITIES (CONTINUED)
SECURITY & COMMODITY BROKERS (2.18 %)
Merrill Lynch & Co., Inc.
6.02 %, due 05/11/2001 ......................... $ 7,500 $ 7,481
--------
Total Corporate Debt Securities
(cost: $ 83,276).................................................. 81,623
--------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
PREFERRED STOCKS (2.30 %)
MOTION PICTURES (2.30 %)
The News Corporation Limited -
Sponsored ADR (7b) ............................. 250,000 $ 7,891
--------
Total Preferred Stocks
(cost: $ 5,244).................................................. 7,891
--------
COMMON STOCKS (51.13 %)
AUTOMOTIVE (0.99 %)
Ford Motor Company ................................ 60,000 3,386
COMMERCIAL BANKS (4.29 %)
Bank One Corporation (7b) ......................... 85,000 5,063
Fleet Financial Group, Inc. ....................... 100,000 4,438
The Chase Manhattan Corporation.................... 60,000 5,198
COMMUNICATIONS EQUIPMENT (1.45 %)
ECI Telecom Ltd. (7b) ............................. 150,000 4,978
COMPUTER & DATA PROCESSING SERVICES (2.86 %)
Convergys Corporation (7a) ........................ 255,000 4,909
NCR Corporation (7a) (7b) ......................... 100,000 4,881
ELECTRIC SERVICES (0.97 %)
The Southern Company ............................. 125,000 3,313
ELECTRIC, GAS & SANITARY SERVICES (1.21 %)
DPL Inc. ......................................... 226,500 4,162
ELECTRONIC COMPONENTS & ACCESSORIES (0.43 %)
Intel Corporation ................................ 25,000 1,488
FINANCE (2.04 %)
Fannie Mae ....................................... 60,000 4,103
Freddie Mac ...................................... 50,000 2,900
FOOD & KINDRED PRODUCTS (2.93 %)
Philip Morris Companies Inc. ..................... 250,000 10,046
HEALTH SERVICES (2.75 %)
Columbia/HCA Healthcare
Corporation ................................... 200,000 4,563
HealthSouth
Corporation (7a) .............................. 325,000 4,855
See Notes to the Financial Statements, which is an integral part of this report.
70 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DEAN ASSET ALLOCATION (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (continued)
HOLDING & OTHER INVESTMENT OFFICES (3.07 %)
Duke Realty Investments, Inc. ..................... 150,000 $ 3,384
Simon Property Group, Inc. ........................ 135,000 3,426
Storage USA, Inc. ................................. 116,200 3,704
INDUSTRIAL MACHINERY & EQUIPMENT (1.05 %)
Caterpillar Inc. .................................. 60,000 3,600
INSTRUMENTS & RELATED PRODUCTS (1.23 %)
Raytheon Company - Class B ........................ 60,000 4,223
INSURANCE (10.16 %)
AFLAC Incorporated ................................ 120,000 5,745
Ambac Financial Group, Inc. ....................... 90,000 5,141
Conseco, Inc. ..................................... 223,320 6,797
MGIC Investment Corporation ....................... 150,000 7,294
The Allstate Corporation .......................... 275,000 9,866
LUMBER & WOOD PRODUCTS (1.25 %)
Clayton Homes, Inc. ............................... 375,000 4,289
MINING (1.13 %)
Potash Corporation of
Saskatchewan Inc. (7b) ......................... 75,000 3,881
MORTGAGE BANKERS AND BROKERS (1.04 %)
Countrywide Credit
Industries, Inc. ............................... 83,400 3,565
OIL & GAS EXTRACTION (1.53 %)
Diamond Offshore Drilling, Inc. ................... 185,000 5,249
PETROLEUM REFINING (1.19 %)
Texaco Inc. ....................................... 65,000 4,063
RESTAURANTS (1.97 %)
Tricon Global Restaurants,
Inc. (7a) (7b) ................................. 125,000 6,766
STONE, CLAY & GLASS PRODUCTS (1.27 %)
Minnesota Mining and
Manufacturing Company .......................... 50,000 4,347
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (continued)
TELECOMMUNICATIONS (3.73 %)
AT&T Corp. ........................................ 200,000 $ 11,162
Bell Atlantic Corporation ......................... 25,000 1,634
WATER TRANSPORTATION (1.78 %)
Tidewater Inc. .................................... 200,000 6,100
WHOLESALE TRADE DURABLE GOODS (0.81 %)
Miami Computer Supply
Corporation (7a) ............................... 146,700 2,769
---------
Total Common Stocks
(cost: $ 153,555)............................................... 175,288
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
COMMERCIAL PAPER (7.41 %)
AML Leasing Trust
4.92 %, due 07/01/1999 ........................... $ 2,000 $ 2,000
Distribution Funding Corp.
4.93 %, due 07/06/1999 ......................... 1,500 1,499
Distribution Funding Corp.
4.94 %, due 07/06/1999 ......................... 2,000 1,999
Eagle Funding Capital Corp.
5.05 %, due 07/19/1999 ......................... 2,000 1,995
Moat Funding, LLC - 144A (7c)
5.00 %, due 07/12/1999 ......................... 11,000 10,982
Moat Funding, LLC - 144A (7c)
5.25 %, due 07/26/1999 ......................... 3,000 2,989
Neptune Funding Corp.
4.94 %, due 07/01/1999 ......................... 3,000 3,000
Triple A One Plus Funding Corp.
4.90 %, due 07/01/1999 ......................... 927 927
---------
Total Commercial Paper
(cost: $ 25,391)................................................. 25,391
---------
Total Investment Securities
(cost: $ 316,022)................................................ $ 338,001
=========
SUMMARY
Investments, at market value. ..................... 98.59 % $ 338,001
Other assets in
excess of liabilities .......................... 1.41 % 4,829
--------- ---------
Net assets ........................................ 100.00 % $ 342,830
========= =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 71
<PAGE>
SCHEDULE OF INVESTMENTS
WRL C.A.S.E. GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (102.36 %)
APPAREL & ACCESSORY STORES (6.60 %)
Abercrombie & Fitch Co. -
Class A (7a) ................................... 46,000 $ 2,208
Claire's Stores, Inc. ............................. 147,000 3,766
APPAREL PRODUCTS (7.99 %)
Jones Apparel Group, Inc. (7a) .................... 114,400 3,924
Tommy Hilfiger Corporation (7a) ................... 45,000 3,308
AUTOMOTIVE (0.97 %)
AlliedSignal Inc. ................................. 14,000 882
CHEMICALS & ALLIED PRODUCTS (3.74 %)
Colgate-Palmolive Company ......................... 18,000 1,778
The Procter & Gamble Company ...................... 18,000 1,607
COMMERCIAL BANKS (3.72 %)
Bank of America Corporation ....................... 25,658 1,881
Bank One Corporation .............................. 25,000 1,489
COMMUNICATIONS EQUIPMENT (11.34 %)
ADC Telecommunications,
Inc. (7a) (7b) ................................. 37,000 1,686
CIENA Corporation (7a) ............................ 152,200 4,594
Digital Microwave Corporation (7a)................. 20,100 257
Nortel Networks Corporation ....................... 43,000 3,732
COMPUTER & DATA PROCESSING SERVICES (8.35 %)
America Online, Inc. (7a) ......................... 15,000 1,658
Compuware Corporation (7a) ........................ 58,000 1,845
Microsoft Corporation (7a) ........................ 11,000 992
Networks Associates, Inc. (7a) .................... 37,000 543
Saville Systems PLC -
Sponsored ADR (7a) ............................. 120,000 1,740
Structural Dynamics Research
Corporation (7a) ............................... 42,000 780
COMPUTER & OFFICE EQUIPMENT (2.38 %)
3Com Corporation (7a) (7b) ........................ 27,100 723
Storage Technology
Corporation (7a) (7b) .......................... 63,000 1,433
CONSTRUCTION (2.00 %)
Halliburton Company ............................... 40,000 1,810
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.08 %)
General Electric Company .......................... 16,000 1,808
U.S. Industries, Inc. ............................. 111,000 1,887
ELECTRONIC COMPONENTS & ACCESSORIES (1.05 %)
Jabil Circuit, Inc. (7a) .......................... 21,000 948
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
HEALTH SERVICES (3.31 %)
Express Scripts, Inc. (7a) ........................ 15,000 $ 903
NovaCare, Inc. (7a) ............................... 1,399,000 2,099
HOTELS & OTHER LODGING PLACES (1.43 %)
Prime Hospitality Corp. (7a) ...................... 108,100 1,297
INSURANCE (2.79 %)
Citigroup Inc. .................................... 53,250 2,529
MEDICAL INSTRUMENTS & SUPPLIES (1.52 %)
Respironics, Inc. (7a) ............................ 91,000 1,376
OIL & GAS EXTRACTION (6.65 %)
Diamond Offshore Drilling, Inc. ................... 52,000 1,476
Noble Drilling Corporation (7a) ................... 91,000 1,792
Transocean Offshore Inc. .......................... 105,000 2,756
PHARMACEUTICALS (6.49 %)
Merck & Co., Inc. ................................. 29,000 2,146
SmithKline Beecham PLC -
Sponsored ADR .................................. 26,000 1,718
Warner-Lambert Company ............................ 29,000 2,012
RADIO, TELEVISION, & COMPUTER STORES (0.42 %)
CompUSA Inc. (7a) ................................. 51,000 379
SAVINGS INSTITUTIONS (1.33 %)
Washington Mutual, Inc. ........................... 34,000 1,203
SHOE STORES (7.01 %)
Genesco Inc. (7a) (7b) ............................ 436,300 6,353
STONE, CLAY & GLASS PRODUCTS (0.96 %)
Minnesota Mining and
Manufacturing Company .......................... 10,000 869
TELECOMMUNICATIONS (12.31 %)
AT&T Corp. (7b) ................................... 57,500 3,209
Lucent Technologies Inc. .......................... 54,000 3,642
MCI WORLDCOM, Inc. (7a) (7b)....................... 40,000 3,450
Qwest Communications
International Inc. (7a) (7b) ................... 26,000 860
TRANSPORTATION EQUIPMENT (1.17 %)
Halter Marine Group, Inc. (7a) .................... 160,000 1,060
TRUCKING & WAREHOUSING (0.90 %)
Yellow Corporation (7a) ........................... 46,000 817
See Notes to the Financial Statements, which is an integral part of this report.
72 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL C.A.S.E. GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
VARIETY STORES (3.64 %)
Costco Companies, Inc. (7a) ....................... 13,000 $ 1,041
Kmart Corporation (7a) ............................ 137,000 2,252
WATER TRANSPORTATION (0.21 %)
Trico Marine Services, Inc. (7a) .................. 29,000 190
--------
Total Common Stocks
(cost: $ 86,946)................................................ 92,708
--------
Total Investment Securities
(cost: $ 86,946)................................................ $ 92,708
========
SUMMARY
Investments, at market value ...................... 102.36 % $ 92,708
Liabilities in
excess of other assets ......................... (2.36)% (2,141)
-------- --------
Net assets ........................................ 100.00 % $ 90,567
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 73
<PAGE>
SCHEDULE OF INVESTMENTS
WRL NWQ VALUE EQUITY
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (95.66 %)
AEROSPACE (2.69 %)
Lockheed Martin Corporation ....................... 61,800 $ 2,302
United Technologies Corporation ................... 34,344 2,462
AIR TRANSPORTATION (1.14 %)
Delta Air Lines, Inc. ............................. 35,000 2,017
CHEMICALS & ALLIED PRODUCTS (4.06 %)
Air Products and Chemicals, Inc. .................. 59,600 2,399
IMC Global Inc. ................................... 55,700 982
Praxair, Inc. ..................................... 65,000 3,181
Rohm and Haas Company ............................. 14,382 617
COMMERCIAL BANKS (14.65 %)
Bank of America Corporation ....................... 67,000 4,912
Bank One Corporation (7b) ......................... 74,000 4,408
First Union Corporation ........................... 98,800 4,644
Fleet Financial Group, Inc. ....................... 35,000 1,553
The Bank of New York
Company, Inc. .................................. 42,000 1,541
The Chase Manhattan Corporation.................... 36,800 3,188
Wells Fargo & Company ............................. 133,400 5,703
COMMUNICATION (0.58 %)
NTL Incorporated (7a) ............................. 12,000 1,034
COMPUTER & DATA PROCESSING SERVICES (2.27 %)
Galileo International, Inc. ....................... 75,100 4,013
COMPUTER & OFFICE EQUIPMENT (3.01 %)
Hewlett-Packard Company (7b) ...................... 31,800 3,196
Xerox Corporation (7b) ............................ 36,000 2,126
CONSTRUCTION (3.58 %)
Foster Wheeler Corporation ........................ 11,800 167
Halliburton Company ............................... 136,200 6,163
DEPARTMENT STORES (1.88 %)
Federated Department
Stores, Inc. (7a) (7b) ......................... 63,000 3,335
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.88 %)
Cooper Industries, Inc. ........................... 42,700 2,220
Thomas & Betts Corporation ........................ 23,300 1,101
ELECTRONIC COMPONENTS & ACCESSORIES (5.13 %)
Texas Instruments Incorporated .................... 62,600 9,078
ENVIRONMENTAL SERVICES (2.43 %)
Waste Management, Inc. ............................ 80,000 4,300
FABRICATED METAL PRODUCTS (1.94 %)
Fortune Brands, Inc. .............................. 83,000 3,434
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
FINANCE (2.02 %)
Fannie Mae ........................................ 52,400 $ 3,583
FOOD & KINDRED PRODUCTS (4.92 %)
Nabisco Group Holdings Corp. ...................... 65,000 1,272
Philip Morris Companies Inc. ...................... 185,000 7,436
HEALTH SERVICES (1.85 %)
Columbia/HCA Healthcare
Corporation .................................... 143,900 3,283
INDUSTRIAL MACHINERY & EQUIPMENT (8.00 %)
Case Corporation .................................. 83,000 3,994
Deere & Company ................................... 39,450 1,563
Ingersoll-Rand Company ............................ 56,500 3,651
Kennametal Inc. ................................... 12,300 381
Weatherford
International, Inc. (7a) (7b) .................. 125,000 4,578
INSTRUMENTS & RELATED PRODUCTS (1.55 %)
Emerson Electric Co. .............................. 43,600 2,741
INSURANCE (9.73 %)
Aetna Inc. ........................................ 53,000 4,740
CIGNA Corporation ................................. 35,000 3,115
Loews Corporation ................................. 78,700 6,227
The Allstate Corporation .......................... 87,800 3,150
LIFE INSURANCE (2.45 %)
Provident Companies, Inc. ......................... 42,800 1,712
Travelers Property Casualty Corp. ................. 67,300 2,633
MORTGAGE BANKERS AND BROKERS (0.85 %)
Countrywide Credit
Industries, Inc. ............................... 35,000 1,496
MOTION PICTURES (2.08 %)
Time Warner Inc. .................................. 50,000 3,675
OIL & GAS EXTRACTION (3.75 %)
Noble Affiliates, Inc. ............................ 32,500 916
Noble Drilling Corporation (7a) ................... 147,600 2,906
Ocean Energy, Inc. (7a) ........................... 212,690 2,047
Transocean Offshore Inc. .......................... 29,400 772
PETROLEUM REFINING (1.35 %)
Lyondell Chemical Company ......................... 115,500 2,382
PRINTING & PUBLISHING (1.19 %)
American Greetings Corporation -
Class A (7b) ................................... 70,000 2,109
SECURITY & COMMODITY BROKERS (1.19 %)
The Bear Stearns Companies Inc. ................... 44,887 2,098
See Notes to the Financial Statements, which is an integral part of this report.
74 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL NWQ VALUE EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (6.88 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) (7b) ...................... 56,000 $ 2,058
CoreComm Limited (7a) ............................. 67,200 3,242
MediaOne Group, Inc. (7a) ......................... 92,600 6,887
TOBACCO PRODUCTS (0.39 %)
R.J. Reynolds Tobacco
Holdings, Inc. (7a) ............................ 21,666 682
WHOLESALE TRADE DURABLE GOODS (2.22 %)
W.W. Grainger, Inc. ............................... 73,000 3,928
---------
Total Common Stocks
(cost: $ 148,202).............................................. 169,333
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM OBLIGATIONS (4.19 %)
Investors Bank & Trust
Company (7e)
4.25 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 7,423 on
07/01/1999 ..................................... $ 7,422 $ 7,422
---------
Total Short-Term Obligations
(cost: $ 7,422)................................................ 7,422
---------
Total Investment Securities
(cost: $ 155,624).............................................. $ 176,755
=========
SUMMARY
Investments, at market value ...................... 99.85 % $ 176,755
Other assets in
excess of liabilities .......................... 0.15 % 269
-------- ---------
Net assets ..................................... 100.00 % $ 177,024
======== =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 75
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
PREFERRED STOCKS (0.07 %)
MEDICAL INSTRUMENTS & SUPPLIES (0.02 %)
Fresenius Medical Care AG .......................... 269 $ 9
TELECOMMUNICATIONS (0.05 %)
Telecomunicacoes de Sao Paulo SA.................... 160,000 19
-----
Total Preferred Stocks
(cost: $ 33).................................................. 28
-----
COMMON STOCKS (78.46 %)
AEROSPACE (0.59 %)
Aerospatiale Matra (7a) ........................... 3,939 91
British Aerospace PLC ............................. 19,076 124
AMUSEMENT & RECREATION SERVICES (1.51 %)
Airtours PLC ...................................... 38,361 306
Granada Group PLC ................................. 13,397 249
APPAREL PRODUCTS (0.54 %)
Adidas-Salomon AG ................................. 1,468 146
Giordano International, Limited ................... 74,000 52
AUTOMOTIVE (2.73 %)
Autoliv, Inc. ..................................... 7,215 220
DaimlerChrysler AG ................................ 2,512 218
FUJI HEAVY INDUSTRIES LTD. ........................ 7,000 54
Honda Motor Company, Ltd. ......................... 2,000 85
Mazda Motor Corporation ........................... 30,000 172
Toyota Motor Corporation .......................... 1,000 32
Volkswagen AG ..................................... 3,457 221
BEER, WINE, & DISTILLED BEVERAGES (0.27 %)
Diageo PLC ........................................ 7,945 83
Foster's Brewing Group Limited .................... 5,600 16
BEVERAGES (0.04 %)
Panamerican Beverages, Inc. -
Class A ........................................ 546 13
BUSINESS SERVICES (0.25 %)
Cosco Pacific Limited ............................. 16,000 13
SEMA Group PLC .................................... 8,004 77
CHEMICALS & ALLIED PRODUCTS (0.54 %)
Shin-Etsu Chemical Co., Ltd. ..................... 5,000 167
Shiseido Company, Limited ......................... 2,000 30
COMMERCIAL BANKS (10.49 %)
Alpha Credit Bank ................................. 328 21
Argentaria, Caja Postal y Banco
Hipotecario de Espana, SA ...................... 7,372 168
Banca Intesa SpA .................................. 33,007 162
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
Banco Comercial Portugues, SA ..................... 2,672 $ 69
Bank of Ireland ................................... 7,491 126
Bank of Tokyo-Mitsubishi, Ltd. .................... 2,000 28
Bayerische Hypo-und Vereinsbank ................... 3,754 244
Commerzbank AG .................................... 213 6
Commonwealth Bank of Australia .................... 1,280 20
Credit Suisse Group ............................... 1,908 331
HSBC Holdings PLC ................................. 4,401 161
ING Groep NV ...................................... 12,314 667
Kookmin Bank ...................................... 2,880 58
Kookmin Bank - Sponsored
GDR - 144A (7c) ................................ 2,446 50
Lloyds TSB Group PLC .............................. 19,117 259
Merita Ltd. - Class A ............................. 23,877 136
National Australia Bank Limited ................... 3,450 57
Northern Rock PLC ................................. 17,000 128
Oversea-Chinese Banking
Corporation Ltd. ............................... 5,000 42
Societe Generale - Class A ........................ 1,063 187
Sumitomo Bank, Limited ............................ 3,000 37
Svenska Handelsbanken - Class A ................... 20,655 248
The Development Bank of
Singapore Ltd. ................................. 5,000 61
The Sanwa Bank, Limited ........................... 3,000 30
UBS AG ............................................ 955 285
Uniao de Bancos Brasileiros SA -
Sponsored GDR .................................. 3,294 79
Unicredito Italiano SpA ........................... 37,533 165
Westpac Banking Corporation
Limited ........................................ 4,400 29
COMMUNICATION (0.57 %)
Reed International PLC ............................ 28,254 188
Saatchi & Saatchi PLC ............................. 5,796 20
COMMUNICATIONS EQUIPMENT (3.53 %)
Comverse Technology, Inc. (7a) .................... 2,597 196
ECI Telecom Ltd. .................................. 6,834 227
Nokia Oyj ......................................... 6,031 529
Nortel Networks Corporation ....................... 1,326 115
Royal Philips Electronics NV ...................... 2,308 228
COMPUTER & DATA PROCESSING SERVICES (0.89 %)
Cap Gemini SA ..................................... 1,814 285
Tecnost SpA ....................................... 17,100 42
CONSTRUCTION (1.27 %)
Beazer Group PLC .................................. 27,000 85
Suez Lyonnaise des Eaux ........................... 1,909 344
Toda Corporation .................................. 8,000 38
See Notes to the Financial Statements, which is an integral part of this report.
76 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
ELECTRIC SERVICES (1.38 %)
CEMIG SA - Sponsored ADR .......................... 3,440 $ 72
Endesa SA ......................................... 7,860 168
Tokyo Electric Power .............................. 2,200 46
VEBA AG ........................................... 3,743 220
ELECTRICAL GOODS (0.44 %)
Johnson Electric Holdings, Ltd. ................... 31,900 132
Johnson Matthey PLC ............................... 3,208 31
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.26 %)
Canon, Inc. ....................................... 7,000 201
General Electric Company PLC ...................... 5,200 53
Mabuchi Motor Co., Ltd. ........................... 400 37
Matsushita Electric Industrial
Company, Ltd. .................................. 3,000 58
Nintendo Company Ltd. ............................. 600 84
Sony Corporation .................................. 2,300 248
Sumitomo Electric Industries, Ltd.................. 13,000 148
ELECTRONIC COMPONENTS & ACCESSORIES (2.76 %)
Celestica, Inc. (7a) .............................. 1,336 58
Celestica, Inc. (U.S.) (7a) ....................... 108 5
Electrocomponents PLC ............................. 14,059 104
Fujitsu Ltd. ...................................... 3,000 60
Minebea Company Ltd. .............................. 20,000 223
Murata Manufacturing Co., Ltd. .................... 1,000 66
Taiwan Semiconductor
Manufacturing Company Ltd. -
Sponsored ADR (7a) ............................. 8,076 275
Toshiba Corporation ............................... 31,000 221
ENGINEERING & MANAGEMENT SERVICES (0.50 %)
ABB AG ............................................ 70 104
Singapore Technologies
Engineering Ltd. ............................... 23,000 26
VA Technologie AG ................................. 581 53
ENVIRONMENTAL SERVICES (0.17 %)
Rentokil Initial PLC .............................. 15,600 61
FINANCE (0.10 %)
Nichiei Co., Ltd. ................................. 400 35
FOOD & KINDRED PRODUCTS (0.21 %)
Gruma SA - Class B (7a) ........................... 5,988 10
Nissin Food Products Co., Ltd. .................... 1,000 24
San Miguel Corporation - Class B .................. 20,350 44
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
FOOD STORES (4.02 %)
Carrefour SA ...................................... 2,951 $ 434
D&S Distribucion y
Servicio SA - ADR .............................. 5,150 97
Etablissements Economicques du
Casino Guichard-Perrachon SA ................... 4,185 367
Jeronimo Martins SGPS SA .......................... 1,296 43
Koninklijke Ahold NV .............................. 9,999 344
Somerfield PLC .................................... 16,172 76
Tesco PLC ......................................... 38,025 98
Woolworths Limited ................................ 6,250 21
GAS PRODUCTION & DISTRIBUTION (0.23 %)
BG PLC ............................................ 13,755 84
HOLDING & OTHER INVESTMENT OFFICES (3.10 %)
Desc SA de CV - Series B .......................... 73,809 81
Desc SA de CV - Sponsored ADR ..................... 2,622 59
Grupo Carso SA de CV -
Sponsored ADR .................................. 10,624 98
Grupo Financiero Banamex Accival,
SA de CV - Class O ............................. 45,809 116
Hutchison Whampoa Limited ......................... 27,000 244
Investor AB - Class B ............................. 1,916 21
Invik & Company AB - Class B ...................... 421 25
Kinnevik AB - Class B ............................. 803 15
Lagardere S.C.A. .................................. 4,833 180
Lend Lease Corporation Limited .................... 2,150 30
Montedison SpA .................................... 65,168 106
Sun Hung Kai Properties Ltd. ...................... 18,000 164
INDUSTRIAL MACHINERY & EQUIPMENT (0.96 %)
Invensys PLC ...................................... 74,318 352
INSURANCE (2.67 %)
Assicurazioni Generali ............................ 435 15
CGU PLC ........................................... 4,350 63
Muenchener Rueckversicherungs -
Gesellschaft AG ................................ 453 84
Muenchener Rueckversicherungs -
Gesellschaft AG - New (7a) ..................... 453 83
Muenchener Rueckversicherungs -
Gesellschaft AG - Warrants ..................... 19 1
QBE Insurance Group Limited ....................... 4,250 16
Royal & Sun Alliance Insurance
Group PLC ...................................... 20,437 183
Skandia Forsakrings AB ............................ 6,800 127
Zurich Allied AG .................................. 717 408
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 77
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INSURANCE AGENTS, BROKERS & SERVICE (2.62 %)
Axa ............................................... 6,410 $ 782
Pohjola Group Insurance
Corporation - Class B .......................... 730 37
Sampo Insurance Company Ltd. -
Class A ........................................ 4,920 143
LIFE INSURANCE (0.54 %)
Prudential Corporation PLC ........................ 13,550 199
LUMBER & CONSTUCTION MATERIALS (0.35 %)
CRH PLC ........................................... 5,691 101
Pioneer International Limited ..................... 10,400 27
MACHINERY, EQUIPMENT & SUPPLIES (3.63 %)
Alstom (7a) ....................................... 8,319 262
Mannesmann AG ..................................... 5,573 833
Noritz Corporation ................................ 3,000 38
Schneider SA ...................................... 3,569 200
MANAGEMENT SERVICES (0.26 %)
CGI Group Inc. (7a) ............................... 4,441 94
MANUFACTURING INDUSTRIES (0.69 %)
FKI PLC ........................................... 44,070 136
VIAG AG ........................................... 136 64
Wesfarmers Limited ................................ 3,500 32
Williams PLC ...................................... 3,066 20
MEDICAL INSTRUMENTS & SUPPLIES (0.91 %)
Fresenius Medical Care AG ......................... 3,412 204
Nycomed Amersham PLC .............................. 18,880 131
METAL MINING (0.46 %)
Billiton PLC ...................................... 12,614 44
Companhia Vale do Rio Doce -
Sponsored ADR .................................. 4,030 80
North Limited ..................................... 7,850 16
Rio Tinto Limited ................................. 1,700 28
MINING (0.23 %)
Broken Hill Proprietary Company
Limited ........................................ 7,250 84
MORTGAGE BANKERS AND BROKERS (0.04 %)
Newcourt Credit Group Inc. ........................ 1,146 15
MOTION PICTURES (0.22 %)
The News Corporation Limited ...................... 9,300 79
MOTOR VEHICLES, PARTS & SUPPLIES (0.71 %)
Valeo SA .......................................... 3,181 262
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (3.08 %)
Coflexip SA - Sponsored ADR ....................... 2,397 $ 104
ENI SpA ........................................... 32,600 192
Repsol SA ......................................... 2,380 49
Saipem SpA ........................................ 30,041 120
Shell Transport & Trading
Company PLC .................................... 9,794 73
Total SA - Class B ................................ 4,577 591
PAPER & ALLIED PRODUCTS (0.07 %)
Fletcher Challenge Paper .......................... 33,000 25
PETROLEUM & PETROLEUM PRODUCTS (0.05 %)
Australian Gas Light Company
Limited ........................................ 3,200 19
PETROLEUM REFINING (1.24 %)
British Petroleum Company PLC ..................... 5,000 90
Elf Aquitaine SA .................................. 2,487 365
PHARMACEUTICALS (4.14 %)
AstraZeneca Group PLC ............................. 2,815 109
Glaxo Wellcome PLC ................................ 5,330 148
Novartis AG - Registered Shares ................... 257 376
Novo Nordisk A/S - Class B ........................ 1,503 162
Pharmacia & Upjohn, Inc. .......................... 2,125 121
Rhone-Poulenc SA - Class A ........................ 5,513 252
Roche Holding AG .................................. 17 175
Takeda Chemical Industries ........................ 1,000 46
Teva Pharmaceutical Industries
Ltd. - Sponsored ADR ........................... 2,734 134
PRIMARY METAL INDUSTRIES (3.78 %)
British Steel PLC ................................. 17,766 46
Hoganas AB - Class B .............................. 13,565 276
Ispat International NV - NY
Registered Shares .............................. 3,414 38
Mitsui Mining & Smelting Co., Ltd.................. 7,000 36
Nippon Steel Corporation .......................... 15,000 35
Pohang Iron & Steel
Company Ltd. ................................... 386 46
Pohang Iron & Steel Company
Ltd. - Sponsored ADR ........................... 1,614 54
Preussag AG ....................................... 15,938 857
PRINTING & PUBLISHING (1.63 %)
Singapore Press Holdings Ltd. ..................... 5,000 85
Toppan Printing Co., Ltd. ......................... 3,000 33
Verenigde Nederlandse
Uitgeversbedrijven ............................. 8,609 344
Wolters Kluwer NV ................................. 3,380 135
See Notes to the Financial Statements, which is an integral part of this report.
78 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (0.28 %)
Grupo Televisa SA -
Sponsored GDR .................................. 2,306 $ 103
RAILROADS (0.10 %)
Railtrack Group PLC ............................... 1,780 36
REAL ESTATE (0.81 %)
Allgreen Properties Limited (7a) .................. 4,000 4
British Land Company PLC .......................... 18,850 158
City Developments Limited ......................... 4,000 26
Corporacion GEO, SA de CV -
Series B (7a) .................................. 17,950 76
Mitsui Fudosan Co., Ltd. .......................... 4,000 32
RESTAURANTS (0.07 %)
Compass Group PLC ................................. 2,770 27
RETAIL TRADE (1.07 %)
Great Universal Stores PLC ........................ 15,923 176
Marks & Spencer PLC ............................... 23,355 135
Vendex NV ......................................... 3,048 81
RUBBER & MISC. PLASTIC PRODUCTS (0.52 %)
Compagnie Generale des
Etablissements Michelin - Class B............... 4,705 192
TELECOMMUNICATIONS (7.29 %)
British Telecommunications PLC .................... 10,827 181
Cable & Wireless
Communications PLC (7a) ........................ 17,345 167
Hellenic Telecommunications
Organization SA ................................ 3,670 79
Hellenic Telecommunications
Organization SA - ADR .......................... 5,999 66
Helsinki Telephone Corporation .................... 427 20
Korea Telecom Corporation -
Sponsored ADR (7a) ............................. 2,149 86
NetCom AB - Class B (7a) .......................... 1,738 59
Nippon Telegraph &
Telephone Corp. ................................ 4 47
NTT Mobile Communication
Network, Inc. .................................. 1 14
NTT Mobile Communication
Network, Inc. - New (7a) ....................... 4 54
Portugal Telecom SA ............................... 3,290 134
Portugal Telecom SA - Rights ...................... 3,290 (7g)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Societe Europeenne de
Communication SA - Sponsored
ADR - Class A (7a) ............................. 15 $ (7g)
Societe Europeenne de
Communication SA - Sponsored
ADR - Class B (7a) ............................. 59 1
Telecom Corporation of New
Zealand Limited ................................ 5,200 22
Telecom Italia Mobile SpA ......................... 13,304 79
Telecom Italia Mobile SpA -
Class NC ....................................... 59,593 221
Telecom Italia SpA ................................ 10,289 107
Telecom Italia SpA - Class NC ..................... 87 (7g)
Telefonaktiebolaget LM Ericsson -
Class B ........................................ 6,103 196
Telefonica SA ..................................... 12,358 595
Telefonos de Mexico SA -
Sponsored ADR .................................. 1,060 86
Telekomunikacja Polska SA -
GDR - 144A (7a) (7c) ........................... 14,905 106
Telstra Corporation Limited ....................... 13,650 78
Vodafone AirTouch Public
Limited Company ................................ 14,195 280
TEXTILE MILL PRODUCTS (0.10 %)
Toray Industries, Inc. ............................ 7,000 35
TRANSPORTATION & PUBLIC UTILITIES (0.99 %)
BAA PLC ........................................... 9,520 92
Brambles Industries, Ltd. ......................... 10,272 271
WATER TRANSPORTATION (0.35 %)
IHC Caland NV ..................................... 3,272 128
WHOLESALE TRADE DURABLE GOODS (0.21 %)
Mitsui & Co., Ltd. ................................ 5,000 35
SOFTBANK Corporation .............................. 200 41
--------
Total Common Stocks
(cost: $ 27,001)................................................. 28,795
--------
Total Investment Securities
(cost: $ 27,034)................................................. $ 28,823
========
SUMMARY
Investments, at market value ...................... 78.53% $ 28,823
Other assets in
excess of liabilities .......................... 21.47% 7,881
-------- --------
Net assets ........................................ 100.00% $ 36,704
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 79
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
INVESTMENTS BY COUNTRY:
MARKET
VALUE PERCENTAGE
----------- -------------
Australia ............................. $ 822 2.85 %
Austria ............................... 53 0.18 %
Brazil ................................ 19 0.07 %
Canada ................................ 166 0.58 %
Denmark ............................... 162 0.56 %
Finland ............................... 865 3.00 %
France ................................ 4,795 16.64 %
Germany ............................... 3,188 11.06 %
Greece ................................ 100 0.35 %
Hong Kong ............................. 767 2.66 %
Italy ................................. 1,210 4.20 %
Japan ................................. 2,571 8.92 %
Mexico ................................ 283 0.98 %
Netherlands ........................... 1,927 6.69 %
New Zealand ........................... 47 0.16 %
Philippines ........................... 44 0.15 %
Portugal .............................. 246 0.85 %
Republic of Korea ..................... 104 0.36 %
Singapore ............................. 244 0.85 %
Spain ................................. 979 3.40 %
Sweden ................................ 1,188 4.12 %
Switzerland ........................... 1,679 5.83 %
United Kingdom ........................ 5,099 17.69 %
United States ......................... 2,265 7.85 %
-------- --------
Investments, at market value ......... $ 28,823 100.00 %
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
80 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE U.S. EQUITY
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
CONVERTIBLE PREFERRED STOCKS (0.44 %)
COMPUTER & DATA PROCESSING SERVICES (0.44 %)
Microsoft Corporation ............................. 7,053 $ 705
------
Total Convertible Preferred Stocks
(cost: $ 685).................................................. 705
------
COMMON STOCKS (92.65 %)
AEROSPACE (1.59 %)
Gulfstream Aerospace
Corporation (7a) ............................... 3,177 215
Lockheed Martin Corporation ....................... 5,054 188
Textron Inc. ...................................... 15,934 1,312
United Technologies
Corporation (7b) ............................... 11,265 808
AIR TRANSPORTATION (0.71 %)
Continental Airlines, Inc. -
Class B (7a) ................................... 16,199 609
Delta Air Lines, Inc. ............................. 9,146 527
AMUSEMENT & RECREATION SERVICES (0.48 %)
The Walt Disney Company (7b) ...................... 24,599 758
AUTOMOTIVE (2.09 %)
AlliedSignal Inc. (7i) ............................ 44,964 2,833
Ford Motor Company ................................ 8,666 489
BEVERAGES (1.47 %)
Anheuser-Busch
Companies, Inc. (7i) ........................... 16,344 1,159
PepsiCo, Inc. (7i) ................................ 30,593 1,184
BUSINESS SERVICES (2.73 %)
Catalina Marketing
Corporation (7a) ............................... 7,389 680
Equifax Inc. (7b) ................................. 49,461 1,765
Reuters Group PLC -
Sponsored ADR (7b) ............................. 4,556 369
The Interpublic Group of
Companies, Inc. ................................ 17,667 1,530
CHEMICALS & ALLIED PRODUCTS (2.62 %)
Air Products and Chemicals, Inc. .................. 9,267 373
Airgas, Inc. (7a) ................................. 7,414 91
Avon Products, Inc. ............................... 17,740 985
Colgate-Palmolive Company ......................... 1,540 152
E. I. du Pont de Nemours
and Company (7b) ............................... 11,794 806
Great Lakes Chemical Corporation................... 9,556 440
The Procter & Gamble Company ...................... 14,684 1,311
COMMERCIAL BANKS (3.33 %)
Bank of America Corporation ....................... 16,247 1,191
BankBoston Corporation ............................ 5,295 271
First Union Corporation ........................... 4,814 226
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
Fleet Financial Group, Inc. ....................... 5,156 $ 229
National City Corporation ......................... 5,295 347
State Street Corporation (7b) ..................... 6,672 570
The Bank of New York
Company, Inc. .................................. 9,387 344
The Chase Manhattan Corporation.................... 10,951 949
U.S. Bancorp ...................................... 12,035 409
Wells Fargo & Company ............................. 17,739 758
COMMUNICATION (1.78 %)
Comcast Corporation - Class A ..................... 37,597 1,445
NTL Incorporated (7a) (7b) ........................ 16,132 1,390
COMMUNICATIONS EQUIPMENT (1.34 %)
Nortel Networks Corporation ....................... 24,552 2,131
COMPUTER & DATA PROCESSING SERVICES (4.40 %)
Automatic Data Processing, Inc. ................... 30,256 1,331
Computer Sciences
Corporation (7a) ............................... 8,210 568
First Data Corporation ............................ 53,195 2,603
Microsoft Corporation (7a) ........................ 27,681 2,496
COMPUTER & OFFICE EQUIPMENT (8.89%)
Cisco Systems, Inc. (7a) .......................... 46,456 2,996
EMC Corporation (7a) .............................. 27,198 1,496
Gateway Inc. (7a) (7b) ............................ 6,017 355
Hewlett-Packard Company ........................... 6,740 677
International Business Machines
Corporation .................................... 29,125 3,763
Pitney Bowes Inc. ................................. 10,663 685
Sun Microsystems, Inc. (7a) ....................... 24,070 1,658
Unisys Corporation (7a) ........................... 21,182 825
Xerox Corporation ................................. 28,330 1,673
CONSTRUCTION (0.53%)
Halliburton Company ............................... 18,775 850
DEPARTMENT STORES (0.41%)
Federated Department
Stores, Inc. (7a) .............................. 7,221 382
Sears, Roebuck and Co. ............................ 6,017 268
DRUG STORES & PROPRIETARY STORES (0.37%)
CVS Corporation ................................... 10,110 517
Omnicare, Inc. .................................... 5,055 64
ELECTRIC SERVICES (1.37%)
Duke Energy Corporation ........................... 9,628 524
Edison International .............................. 14,923 399
Florida Progress Corporation ...................... 10,275 424
FPL Group, Inc. ................................... 9,989 546
Texas Utilities Company ........................... 6,740 278
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 81
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE U.S. EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
ELECTRIC, GAS & SANITARY SERVICES (0.87%)
CMS Energy Corporation ............................ 19,016 $ 796
New Century Energies, Inc. ........................ 15,164 589
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.94%)
Harman International Industries,
Incorporated ................................... 2,888 127
Hubbell Incorporated - Class B .................... 30,092 1,365
ELECTRONIC COMPONENTS & ACCESSORIES (2.63%)
Analog Devices, Inc. (7a) ......................... 22,506 1,130
Intel Corporation ................................. 32,735 1,948
Molex Incorporated - Class A ...................... 19,363 610
Texas Instruments Incorporated .................... 3,370 489
ENVIRONMENTAL SERVICES (1.25%)
Waste Management, Inc. ............................ 36,827 1,979
FABRICATED METAL PRODUCTS (0.35 )
Masco Corporation ................................. 11,072 320
The Gillette Company .............................. 3,611 148
The Stanley Works ................................. 2,768 89
FINANCE (1.41%)
Fannie Mae ........................................ 32,667 2,234
FOOD & KINDRED PRODUCTS (1.78%)
Bestfoods ......................................... 6,499 322
General Mills, Inc. ............................... 4,886 393
H.J. Heinz Company ................................ 7,221 362
Philip Morris Companies Inc. ...................... 24,600 989
Ralston Purina Company ............................ 24,888 758
GAS PRODUCTION & DISTRIBUTION (0.31%)
El Paso Energy Corporation ........................ 11,554 407
Sonat Inc. ........................................ 2,407 80
HEALTH SERVICES (0.17%)
Lincare Holdings Inc. (7a) ........................ 10,832 271
INDUSTRIAL MACHINERY & EQUIPMENT (2.17%)
Applied Materials, Inc. (7a) ...................... 15,147 1,119
Baker Hughes Incorporated ......................... 11,481 385
Deere & Company ................................... 6,499 258
Dover Corporation ................................. 48,380 1,693
INSTRUMENTS & RELATED PRODUCTS (0.70%)
Emerson Electric Co. .............................. 17,643 1,109
INSURANCE (5.53%)
American International
Group, Inc. .................................... 11,410 1,336
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Berkshire Hathaway Inc. -
Class B (7a) ................................... 622 $ 1,393
Citigroup Inc. .................................... 104,295 4,953
Loews Corporation ................................. 8,665 686
The Chubb Corporation ............................. 2,407 167
The St. Paul Companies, Inc. ...................... 5,295 168
Unum Corporation .................................. 1,565 86
INSURANCE AGENTS, BROKERS & SERVICE (0.50%)
Marsh & McLennan
Companies, Inc. ................................ 6,451 487
The Hartford Financial Services
Group, Inc. .................................... 5,295 309
LIFE INSURANCE (1.50%)
Lincoln National Corporation ...................... 12,998 680
Provident Companies, Inc. ......................... 29,486 1,179
ReliaStar Financial Corp. ......................... 12,035 527
LUMBER & OTHER BUILDING MATERIALS (1.43%)
Lowe's Companies, Inc. ............................ 19,135 1,085
The Home Depot, Inc. .............................. 18,510 1,193
LUMBER & WOOD PRODUCTS (0.19%)
Rayonier Inc. ..................................... 6,018 300
MEDICAL INSTRUMENTS & SUPPLIES (0.40%)
DENTSPLY International Inc. ....................... 6,740 189
Sybron International
Corporation (7a) ............................... 16,007 441
METAL MINING (0.36%)
Barrick Gold Corporation (7b) ..................... 16,849 326
Newmont Mining Corporation ........................ 12,035 239
MINING (0.51%)
Martin Marietta Materials, Inc. ................... 13,804 814
MORTGAGE BANKERS AND BROKERS (0.06%)
Countrywide Credit
Industries, Inc. ............................... 2,190 94
MOTION PICTURES (0.39%)
Time Warner Inc. (7b) ............................. 8,376 616
OIL & GAS EXTRACTION (2.49 )
Anadarko Petroleum Corporation .................... 6,090 224
Burlington Resources Inc. ......................... 16,825 728
Nabors Industries, Inc. (7a) (7b) ................. 5,608 137
Schlumberger Limited .............................. 17,427 1,110
See Notes to the Financial Statements, which is an integral part of this report.
82 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE U.S. EQUITY (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
Total SA - Sponsored ADR (7b) ..................... 7,341 $ 473
Unocal Corporation ................................ 25,875 1,025
USX-Marathon Group ................................ 8,184 266
PAPER & ALLIED PRODUCTS (0.16%)
The Mead Corporation .............................. 6,128 256
PERSONAL CREDIT INSTITUTIONS (2.21%)
American Express Company (7i) ..................... 18,221 2,371
Associates First Capital
Corporation - Class A .......................... 25,685 1,138
PETROLEUM REFINING (3.65%)
BP Amoco PLC -
Sponsored ADR (7b) ............................. 2,648 287
Chevron Corporation ............................... 3,611 344
Exxon Corporation ................................. 31,099 2,399
Mobil Corporation ................................. 11,073 1,096
Royal Dutch Petroleum Company -
NY Registered Shares (7b) ...................... 21,855 1,317
Texaco Inc. ....................................... 5,777 361
PHARMACEUTICALS (12.09%)
Abbott Laboratories ............................... 36,345 1,654
Allergan, Inc. .................................... 7,702 855
ALZA Corporation (7a) ............................. 1,204 61
American Home Products
Corporation .................................... 14,225 818
AmeriSource Health Corporation -
Class A (7a) ................................... 2,407 61
Amgen Inc. (7a) ................................... 10,590 645
Bristol-Myers Squibb Company ...................... 49,415 3,481
Cardinal Health, Inc. (7b) ........................ 42,002 2,693
Johnson & Johnson ................................. 20,484 2,007
Merck & Co., Inc. ................................. 49,224 3,642
Pfizer Inc. ....................................... 4,718 518
Pharmacia & Upjohn, Inc. .......................... 17,090 971
Schering-Plough Corporation ....................... 13,961 740
Shire Pharmaceuticals Group
PLC - ADR (7a) ................................. 3,129 81
Warner-Lambert Company ............................ 3,611 251
Watson Pharmaceuticals, Inc. (7a).................. 20,700 726
PRINTING & PUBLISHING (1.29%)
Gannett Co., Inc. ................................. 20,676 1,476
Knight-Ridder, Inc. (7b) .......................... 10,350 569
RAILROADS (0.78%)
Burlington Northern
Santa Fe Corporation ........................... 28,644 888
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RAILROADS (CONTINUED)
Canadian Pacific Limited .......................... 14,923 $ 355
RESTAURANTS (0.60%)
McDonald's Corporation ............................ 23,107 955
RETAIL TRADE (0.38%)
Henry Schein, Inc. (7a) ........................... 10,951 347
Office Depot, Inc. (7a) ........................... 11,313 250
SECURITY & COMMODITY BROKERS (0.93%)
Morgan Stanley Dean
Witter and Co. ................................. 11,554 1,184
The Goldman Sachs
Group, Inc. (7a) (7b) .......................... 4,106 297
TELECOMMUNICATIONS (6.79%)
AT&T Corp. - Liberty Media
Group - Class A (7a) ........................... 31,292 1,150
AT&T Corp. (7b) (7i) .............................. 17,452 974
Bell Atlantic Corporation (7i) .................... 11,554 755
Frontier Corporation .............................. 7,221 426
GTE Corporation ................................... 22,313 1,690
MCI WORLDCOM, Inc. (7a) ........................... 9,268 799
MediaOne Group, Inc. (7a) ......................... 4,333 322
SBC Communications Inc. ........................... 44,674 2,591
Sprint Corporation ................................ 8,184 432
US WEST, Inc. ..................................... 14,442 848
Vodafone AirTouch Public
Limited Company -
Sponsored ADR (7b) (7i) ........................ 4,092 806
TEXTILE MILL PRODUCTS (0.55%)
Sara Lee Corporation .............................. 38,272 868
VARIETY STORES (2.92%)
Costco Companies, Inc. (7a) ....................... 6,018 482
Dayton Hudson Corporation ......................... 35,383 2,300
Wal-Mart Stores, Inc. ............................. 38,512 1,858
WATER TRANSPORTATION (0.25%)
Carnival Corporation .............................. 8,184 397
---------
Total Common Stocks
(cost: $ 124,886)............................................. 147,215
---------
Total Investment Securities
(cost: $ 125,571)............................................. $ 147,920
=========
SUMMARY
Investments, at market value. ..................... 93.09% $ 147,920
Other assets in
excess of liabilities .......................... 6.91% 10,976
-------- ---------
Net assets ........................................ 100.00% $ 158,896
======== =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 83
<PAGE>
SCHEDULE OF INVESTMENTS
WRL THIRD AVENUE VALUE
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (84.68%)
COMPUTER & DATA PROCESSING SERVICES (4.36%)
NCR Corporation (7a) .............................. 17,600 $ 859
COMPUTER & OFFICE EQUIPMENT (4.04%)
3Com Corporation (7a) ............................. 29,800 795
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.46%)
Electro Scientific
Industries, Inc. (7a) .......................... 5,000 209
Evans & Sutherland Computer
Corporation (7a) ............................... 6,000 78
ELECTRONIC COMPONENTS & ACCESSORIES (5.63%)
AVX Corporation ................................... 30,000 731
Planar Systems, Inc. (7a) ......................... 48,800 378
HEALTH SERVICES (0.86 %)
Prime Medical Services, Inc. (7a) ................. 23,000 170
HOLDING & OTHER INVESTMENT OFFICES (3.89%)
Imperial Credit Commercial
Mortgage Investment Corp. ...................... 41,000 443
Koger Equity, Inc. ................................ 17,500 323
INDUSTRIAL MACHINERY & EQUIPMENT (26.91%)
Alamo Group Inc. .................................. 9,000 79
Electroglas, Inc. (7a) ............................ 64,500 1,289
FSI International, Inc. (7a) ...................... 79,900 664
Silicon Valley Group, Inc. (7a) ................... 51,100 859
SpeedFam-IPEC, Inc. (7a) .......................... 45,300 728
Tecumseh Products Company -
Class A ........................................ 9,200 557
Tecumseh Products Company -
Class B ........................................ 6,900 376
Toyoda Automatic Loom
Works, Ltd. .................................... 44,000 747
INSTRUMENTS & RELATED PRODUCTS (0.40%)
Analogic Corporation .............................. 2,500 78
INSURANCE (20.06%)
Chiyoda Fire & Marine Insurance
Company, Limited ............................... 165,000 537
Enhance Financial Services
Group Inc. ..................................... 23,000 454
Financial Security Assurance
Holdings Ltd. .................................. 15,000 780
LaSalle Re Holdings Limited ....................... 8,000 136
Leucadia National Corporation ..................... 17,900 448
MBIA Inc. ......................................... 3,000 194
Mitsui Marine and Fire Insurance
Company, Ltd. .................................. 152,000 747
Risk Capital Holdings, Inc. (7a) .................. 34,600 467
The First American Financial
Corporation .................................... 10,500 188
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (1.85%)
Liberty Financial Companies, Inc. 12,500 $ 364
MEDICAL INSTRUMENTS & SUPPLIES (3.04%)
Hologic, Inc. (7a) ................................ 23,500 132
Protocol Systems, Inc. (7a) ....................... 53,700 467
OIL & GAS EXTRACTION (5.84%)
Nabors Industries, Inc. (7a) ...................... 47,000 1,149
PAPER & ALLIED PRODUCTS (1.03%)
The St. Joe Company ............................... 7,500 203
REAL ESTATE (0.34%)
Avatar Holdings Inc. (7a) ......................... 3,500 66
RESTAURANTS (0.21%)
Sbarro, Inc. (7a) ................................. 1,500 41
TELECOMMUNICATIONS (1.20%)
Boston Communications
Group, Inc. (7a) ............................... 17,600 237
WATER TRANSPORTATION (3.56%)
Alexander & Baldwin, Inc. ......................... 31,500 701
-------
Total Common Stocks
(cost: $ 17,457).............................................. 16,674
NUMBER OF MARKET
CONTRACTS VALUE
--------- -----------
OPTIONS (0.03 %)
Japanese Yen Puts Strike 131,
Expires 10/07/1999 ............................. 1 $ 5
Total Options
(cost: $ 46).................................................. 5
---------
Total Investment Securities
(cost: $ 17,503).............................................. $ 16,679
=========
SUMMARY
Investments, at market value ...................... 84.71% $ 16,679
Other assets in
excess of liabilities .......................... 15.29% 3,010
--------- ---------
Net assets ........................................ 100.00% $ 19,689
========= =========
INVESTMENTS BY COUNTRY:
MARKET
VALUE PERCENTAGE
--------- ----------
Japan ............................................. $ 5 0.03%
United States ..................................... 16,674 99.97%
-------- ----------
Investments, at market value .................... $ 16,679 100.00%
======== ==========
See Notes to the Financial Statements, which is an integral part of this report.
84 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN REAL ESTATE SECURITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (89.79 %)
HOLDING & OTHER INVESTMENT OFFICES (74.47 %)
APARTMENTS (19.02 %)
Apartment Investment and
Management Company - Class A ................... 3,600 $ 154
Archstone Communities Trust ....................... 3,700 81
AvalonBay Communities, Inc. ....................... 1,600 59
Camden Property Trust ............................. 1,700 47
Equity Residential Properties Trust 3,543 160
Gables Residential Trust .......................... 3,800 92
Post Properties, Inc. ............................. 2,100 86
United Dominion Realty
Trust, Inc. .................................... 8,800 103
DIVERSIFIED (9.61 %)
American Industrial Properties
REIT ........................................... 400 6
Liberty Property Trust ............................ 4,200 104
National Golf Properties, Inc. .................... 5,200 126
Spieker Properties, Inc. .......................... 4,100 159
HOTELS (5.33 %)
FelCor Lodging Trust
Incorporated ................................... 3,900 81
Innkeepers USA Trust .............................. 3,800 38
MeriStar Hospitality Corporation .................. 1,200 27
Starwood Hotels & Resorts
Worldwide, Inc. ................................ 2,400 73
OFFICE PROPERTY (12.06 %)
CarrAmerica Realty Corporation .................... 600 15
Cousins Properties Incorporated ................... 2,100 71
Crescent Real Estate Equities
Company ........................................ 2,100 50
Equity Office Properties Trust .................... 12,000 308
Highwoods Properties, Inc. ........................ 700 19
TriNet Corporate Realty
Trust, Inc. .................................... 1,200 33
REGIONAL MALL (9.68 %)
CBL & Associates Properties, Inc. 1,400 37
Simon Property Group, Inc. ........................ 8,500 216
The Macerich Company .............................. 3,700 97
The Mills Corporation ............................. 2,200 48
SHOPPING CENTER (11.55 %)
Burnham Pacific Properties, Inc. .................. 8,300 102
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
SHOPPING CENTER (CONTINUED)
Developers Diversified Realty
Corporation .................................... 6,400 $ 106
Federal Realty Investment Trust ................... 3,300 76
IRT Property Company .............................. 5,400 53
Vornado Realty Trust .............................. 3,900 138
STORAGE (3.26 %)
Public Storage, Inc. .............................. 4,800 134
WAREHOUSE (3.96 %)
CenterPoint Properties
Corporation .................................... 2,400 88
Prentiss Properties Trust ......................... 1,600 38
Weeks Corporation ................................. 1,200 37
HOTEL & OTHER LODGING PLACES (3.38 %)
HOTELS (3.38 %)
Host Marriott Corporation ......................... 11,700 139
REAL ESTATE (11.94%)
APARTMENTS (0.17%)
Charles E. Smith Residential
Realty L.P. .................................... 200 7
OFFICE PROPERTY (7.23%)
Arden Realty, Inc. ................................ 5,700 140
Cornerstone Properties Inc. ....................... 9,900 157
REGIONAL MALL (0.41%)
Westfield America, Inc. ........................... 1,100 17
WAREHOUSE (4.13%)
ProLogis Trust .................................... 8,400 170
-------
Total Common Stocks
(cost: $ 3,750)............................................... 3,692
-------
Total Investment Securities
(cost: $ 3,750)............................................... $ 3,692
=======
SUMMARY
Investments, at market value ...................... 89.79% $ 3,692
Other assets in
excess of liabilities .......................... 10.21% 420
-------- -------
Net assets ........................................ 100.00% $ 4,112
======== =======
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 85
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (132.57 %)
AMUSEMENT & RECREATION SERVICES (0.50%)
The Walt Disney Company ........................... 360 $ 11
BEVERAGES (3.35%)
Coca-Cola Company ................................. 650 41
PepsiCo, Inc. ..................................... 840 32
BUSINESS CREDIT INSTITUTIONS (0.41%)
The CIT Group, Inc. - Class A ..................... 300 9
BUSINESS SERVICES (1.84%)
CheckFree Holdings
Corporation (7a) ............................... 190 5
Valassis Communications, Inc. (7a) 955 35
CHEMICALS & ALLIED PRODUCTS (8.58%)
Air Products and Chemicals, Inc. .................. 120 5
Avon Products, Inc. ............................... 810 45
Colgate-Palmolive Company ......................... 510 50
E. I. du Pont de Nemours
and Company .................................... 290 20
Ecolab Inc. ....................................... 430 19
The Clorox Company ................................ 170 18
The Procter & Gamble Company ...................... 340 30
COMMERCIAL BANKS (9.04%)
Bank of America Corporation ....................... 440 32
Bank One Corporation .............................. 740 44
MBNA Corporation .................................. 1,470 45
State Street Corporation .......................... 710 61
Wells Fargo & Company ............................. 360 15
COMMUNICATION (3.85%)
Cablevision Systems Corporation -
Class A (7a) ................................... 380 27
Comcast Corporation - Class A ..................... 640 25
Crown Castle
International Corp. (7a) ....................... 880 18
EchoStar Communications
Corporation (7a) ............................... 90 14
COMMUNICATIONS EQUIPMENT (2.98%)
QUALCOMM Incorporated (7a) ........................ 450 65
COMPUTER & DATA PROCESSING SERVICES (11.32%)
At Home Corporation -
Class A (7a) ................................... 404 22
Automatic Data Processing, Inc. ................... 330 15
First Data Corporation ............................ 980 48
Galileo International, Inc. ....................... 370 20
Microsoft Corporation (7a) ........................ 1,260 115
Sterling Commerce, Inc. (7a) ...................... 460 17
VeriSign, Inc. (7a) ............................... 120 10
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (7.85%)
Cisco Systems, Inc. (7a) .......................... 940 $ 61
EMC Corporation (7a) .............................. 230 13
International Business Machines
Corporation .................................... 450 58
Sun Microsystems, Inc. (7a) ....................... 570 39
DRUG STORES & PROPRIETARY STORES (2.11%)
CVS Corporation ................................... 260 13
Walgreen Co. ...................................... 1,110 33
ELECTRIC SERVICES (3.49%)
The AES Corporation (7a) .......................... 1,310 76
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.62%)
General Electric Company .......................... 700 79
ELECTRONIC COMPONENTS & ACCESSORIES (1.84%)
Intel Corporation ................................. 680 40
ENVIRONMENTAL SERVICES (2.02 %)
Waste Management, Inc. ............................ 820 44
FINANCE (4.36 %)
Fannie Mae ........................................ 680 46
Freddie Mac ....................................... 850 49
FOOD & KINDRED PRODUCTS (4.36%)
Nabisco Holdings Corp. - Class A .................. 560 24
Philip Morris Companies Inc. ...................... 380 15
Ralston Purina Company ............................ 1,110 34
Wm. Wrigley Jr. Company ........................... 240 22
HOTELS & OTHER LODGING PLACES (1.06%)
Marriott International, Inc. -
Class A ........................................ 620 23
INSURANCE (3.85%)
Ambac Financial Group, Inc. ....................... 190 11
American International
Group, Inc. .................................... 290 34
Citigroup Inc. .................................... 815 39
LIFE INSURANCE (1.10%)
Hartford Life, Inc. - Class A ..................... 210 11
Nationwide Financial
Services, Inc. - Class A ....................... 290 13
LUMBER & OTHER BUILDING MATERIALS (1.06%)
The Home Depot, Inc. .............................. 350 23
MANUFACTURING INDUSTRIES (0.50%)
Hasbro, Inc. ...................................... 380 11
See Notes to the Financial Statements, which is an integral part of this report.
86 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
MOTION PICTURES (3.30 %)
Time Warner Inc. .................................. 980 $ 72
OIL & GAS EXTRACTION (2.34 %)
Schlumberger Limited .............................. 710 45
Unocal Corporation ................................ 160 6
PERSONAL SERVICES (1.61 %)
Service Corporation International 1,820 35
PETROLEUM REFINING (3.58 %)
Atlantic Richfield Company ........................ 70 6
Exxon Corporation ................................. 290 22
Mobil Corporation ................................. 160 16
Royal Dutch Petroleum Company -
NY Registered Shares ........................... 190 11
Texaco Inc. ....................................... 370 23
PHARMACEUTICALS (15.18 %)
American Home Products
Corporation .................................... 840 48
Bristol-Myers Squibb Company ...................... 970 68
Eli Lilly and Company ............................. 290 21
Johnson & Johnson ................................. 310 30
Merck & Co., Inc. ................................. 440 33
Pfizer Inc. ....................................... 550 60
Schering-Plough Corporation ....................... 510 27
Warner-Lambert Company ............................ 640 44
PRINTING & PUBLISHING (4.86%)
A. H. Belo Corporation - Class A .................. 1,150 23
Central Newspapers, Inc. - Class A 510 19
Gannett Co., Inc. ................................. 300 21
The New York Times Company -
Class A ........................................ 480 18
Tribune Company ................................... 120 10
Ziff-Davis Inc. (7a) .............................. 990 15
RADIO & TELEVISION BROADCASTING (5.78%)
CBS Corporation (7a) .............................. 1,030 45
Chancellor Media Corporation (7a).................. 530 29
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (CONTINUED)
Clear Channel
Communications, Inc. (7a) ...................... 297 $ 20
Infinity Broadcasting Corp. -
Class A (7a) ................................... 1,070 32
RADIO, TELEVISION, & COMPUTER STORES (2.11%)
Tandy Corporation ................................. 940 46
REAL ESTATE (0.55%)
Starwood Hotels & Resorts
Worldwide, Inc. ................................ 400 12
RESTAURANTS (0.64%)
McDonald's Corporation ............................ 330 14
STONE, CLAY & GLASS PRODUCTS (0.64%)
Minnesota Mining and
Manufacturing Company .......................... 160 14
TELECOMMUNICATIONS (10.37%)
AT&T Corp. - Liberty Media
Group - Class A (7a) ........................... 2,460 91
Lucent Technologies Inc. .......................... 400 27
MCI WORLDCOM, Inc. (7a) ........................... 640 55
MediaOne Group, Inc. (7a) ......................... 710 53
VARIETY STORES (2.52%)
Wal-Mart Stores, Inc. ............................. 1,150 55
-------
Total Common Stocks
(cost: $ 2,779)............................................... 2,890
-------
Total Investment Securities
(cost: $ 2,779)............................................... $ 2,890
=======
SUMMARY
Investments, at market value ...................... 132.57% $ 2,890
Liabilities in
excess of other assets ......................... (32.57)% (710)
-------- -------
Net assets ....................................... 100.00% $ 2,180
======== =======
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 87
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (100.29%)
AEROSPACE (0.17%)
Triumph Group, Inc. (7a) .......................... 300 $ 8
AIR TRANSPORTATION (1.12%)
Airborne Freight Corporation ...................... 300 8
Alaska Air Group, Inc. (7a) ....................... 300 13
America West Holdings
Corporation - Class B (7a) ..................... 700 13
Amtran, Inc. (7a) ................................. 400 10
Midwest Express
Holdings, Inc. (7a) ............................ 300 10
AMUSEMENT & RECREATION SERVICES (0.73%)
Aztar Corporation (7a) ............................ 1,400 13
Dover Downs Entertainment, Inc. 400 7
Hollywood Park, Inc. (7a) ......................... 400 7
Station Casinos, Inc. (7a) ........................ 400 8
APPAREL & ACCESSORY STORES (0.41%)
AnnTaylor, Inc. (7a) .............................. 200 9
The Talbots, Inc. ................................. 300 11
APPAREL PRODUCTS (0.35%)
Oxford Industries, Inc. ........................... 300 8
Phillips-Van Heusen Corporation ................... 900 9
AUTO REPAIR, SERVICES & PARKING (0.73%)
Avis Rent A Car, Inc. (7a) ........................ 400 12
Dollar Thrifty Automotive
Group, Inc. (7a) ............................... 1,000 23
AUTOMOTIVE (2.14%)
Arvin Industries, Inc. ............................ 400 15
CLARCOR Inc. ...................................... 800 15
Coachmen Industries, Inc. ......................... 500 12
Federal Signal Corporation ........................ 600 13
Group 1 Automotive, Inc. (7a) ..................... 400 8
Monaco Coach Corporation (7a) ..................... 300 13
National R.V. Holdings, Inc. (7a) ................. 400 10
Simpson Industries, Inc. .......................... 1,200 12
Stoneridge, Inc. (7a) ............................. 400 5
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.70%)
O'Reilly Automotive, Inc. (7a) .................... 300 15
The Pep Boys - Manny,
Moe & Jack ..................................... 900 19
BUSINESS CREDIT INSTITUTIONS (0.19%)
Arcadia Financial Ltd. (7a) ....................... 1,100 9
BUSINESS SERVICES (2.47%)
Aaron Rents, Inc. ................................. 700 16
ABM Industries Incorporated ....................... 300 9
ADVO, Inc. (7a) ................................... 300 6
F.Y.I. Incorporated (7a) .......................... 300 9
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Interim Services Inc. (7a) ........................ 800 $ 17
NCO Group, Inc. (7a) .............................. 300 11
Paymentech, Inc. (7a) ............................. 500 13
Rent-A-Center, Inc. (7a) .......................... 400 10
Rental Service Corporation (7a) ................... 200 6
The Ackerley Group, Inc. .......................... 400 7
The Wackenhut Corporation -
Class A ........................................ 500 15
CHEMICALS & ALLIED PRODUCTS (2.22 %)
Block Drug Company, Inc. -
Class A ........................................ 300 13
Cambrex Corporation ............................... 600 16
Church & Dwight Co., Inc. ......................... 300 13
Dexter Corporation ................................ 600 24
H.B. Fuller Company ............................... 300 21
The Geon Company .................................. 300 10
WD-40 Company ..................................... 400 10
COMMERCIAL BANKS (5.88 %)
BancWest Corporation .............................. 300 11
Chittenden Corporation ............................ 507 16
Commerce Bancorp, Inc. ............................ 300 13
Community First Bankshares, Inc.................... 600 14
Community Trust Bancorp, Inc. ..................... 400 9
First Charter Corporation ......................... 800 20
First Citizens BancShares, Inc. -
Class A ........................................ 200 16
First Commonwealth Financial
Corporation .................................... 700 17
First Merchants Corporation ....................... 300 7
First United Bancshares, Inc. ..................... 500 9
First Western Bancorp, Inc. ....................... 600 20
Frontier Financial Corporation .................... 400 10
Hudson United Bancorp ............................. 700 21
Republic Bancorp, Inc. ............................ 700 11
Republic Banking Corporation
of Florida ..................................... 600 12
Sky Financial Group, Inc. ......................... 400 11
Triangle Bancorp, Inc. ............................ 500 8
UST Corp. ......................................... 700 21
Western Bancorp ................................... 500 22
Whitney Holding Corporation ....................... 400 16
COMMUNICATION (0.12 %)
Premiere Technologies, Inc. (7a) .................. 500 6
COMMUNICATIONS EQUIPMENT (1.60 %)
ANTEC Corporation (7a) ............................ 300 10
Digital Microwave Corporation (7a) ................ 600 8
DSP Communications, Inc. (7a) ..................... 300 9
General Semiconductor, Inc. (7a) .................. 800 7
PairGain Technologies, Inc. (7a) .................. 600 7
See Notes to the Financial Statements, which is an integral part of this report.
88 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
Polycom, Inc. (7a) ................................ 200 $ 8
Powerwave Technologies, Inc. (7a).................. 200 6
Sawtek Inc. (7a) .................................. 300 14
Sensormatic Electronics
Corporation (7a) ............................... 600 8
COMPUTER & DATA PROCESSING SERVICES (7.41%)
3dfx Interactive, Inc. (7a) ....................... 600 9
Advent Software, Inc. (7a) ........................ 200 13
American Management Systems,
Incorporated (7a) .............................. 500 16
AVT Corporation (7a) .............................. 300 11
Broadvision, Inc. (7a) ............................ 200 15
CACI International Inc (7a) ....................... 500 11
Clarify Inc. (7a) ................................. 300 12
Com21, Inc. (7a) .................................. 300 5
Concord Communications,
Inc. (7a) ...................................... 200 9
Genesys Telecommunications
Laboratories, Inc. (7a) ........................ 400 10
GTECH Holdings Corporation (7a) 300 7
IDT Corporation (7a) .............................. 200 4
Imation Corp. (7a) ................................ 600 15
IMRglobal Corp. (7a) .............................. 400 8
ISS Group, Inc. (7a) .............................. 300 11
Mastech Corporation (7a) .......................... 500 9
Medical Manager Corporation (7a)................... 100 4
MedQuist Inc. (7a) ................................ 300 13
Mentor Graphics Corporation (7a)................... 1,000 13
Mercury Interactive
Corporation (7a) ............................... 400 14
Metamor Worldwide, Inc. (7a) ...................... 400 10
Midway Games Inc. (7a) ............................ 600 8
Pegasus Systems, Inc. (7a) ........................ 200 7
Peregrine Systems, Inc. (7a) ...................... 300 8
Primark Corporation (7a) .......................... 500 14
ProBusiness Services, Inc. (7a) ................... 300 11
Progress Software Corporation (7a)................. 200 6
QRS Corporation (7a) .............................. 100 8
Remedy Corporation (7a) ........................... 300 8
Structural Dynamics Research
Corporation (7a) ............................... 500 9
Sybase, Inc. (7a) ................................. 1,100 12
Sykes Enterprises,
Incorporated (7a) .............................. 300 10
Systems & Computer Technology
Corporation (7a) ............................... 400 6
Transaction Systems
Architects, Inc. - Class A (7a) ................ 300 12
TSI International Software
Ltd. (7a) ...................................... 300 9
Visio Corporation (7a) ............................ 300 11
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (3.81 %)
Bell & Howell Company (7a) ........................ 400 $ 15
Black Box Corporation (7a) ........................ 200 10
C-Cube Microsystems Inc. (7a) ..................... 400 13
Computer Network Technology
Corporation (7a) ............................... 400 9
Cybex Computer Products
Corporation (7a) ............................... 200 6
General Binding Corporation ....................... 500 12
Kronos Incorporated (7a) .......................... 200 9
MMC Networks, Inc. (7a) ........................... 300 13
MTI Technology Corporation (7a).................... 700 9
National Computer System, Inc. .................... 600 20
National Instruments
Corporation (7a) ............................... 300 12
Proxim, Inc. (7a) ................................. 200 12
SanDisk Corporation (7a) .......................... 300 14
Security Dynamics
Technologies, Inc. (7a) ........................ 500 11
Visual Networks, Inc. (7a) ........................ 300 10
Xircom, Inc. (7a) ................................. 300 9
CONSTRUCTION (4.23 %)
D.R. Horton, Inc. ................................. 600 10
Del Webb Corporation .............................. 800 19
Dycom Industries, Inc. (7a) ....................... 400 22
Foster Wheeler Corporation ........................ 1,100 16
Granite Construction Incorporated ................. 600 18
Kaufman and Broad Home
Corporation .................................... 800 20
M.D.C. Holdings, Inc. ............................. 800 17
Morrison Knudsen
Corporation (7a) ............................... 1,300 13
Pulte Corporation ................................. 700 16
Standard Pacific Corp. ............................ 1,400 18
The Ryland Group, Inc. ............................ 700 21
U.S. Home Corporation (7a) ........................ 400 14
DRUG STORES & PROPRIETARY STORES (0.08 %)
NCS HealthCare, Inc. -
Class A (7a) ................................... 800 4
ELECTRIC SERVICES (0.93 %)
Hawaiian Electric Industries, Inc. ................ 300 11
The Empire District Electric
Company ........................................ 400 10
The United Illuminating
Company ........................................ 600 24
ELECTRIC, GAS & SANITARY SERVICES (1.60 %)
California Water Service Group .................... 800 21
Northwestern Corporation .......................... 600 15
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 89
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
ELECTRIC, GAS & SANITARY SERVICES (CONTINUED)
Public Service Company of
New Mexico ..................................... 600 $ 12
Rochester Gas and Electric
Corporation .................................... 800 21
UGI Corporation ................................... 400 8
ELECTRICAL GOODS (0.25 %)
Kent Electronics Corporation (7a).................. 600 12
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.47 %)
A.O. Smith Corporation ............................ 400 11
C&D Technologies, Inc. ............................ 200 6
Electro Scientific
Industries, Inc. (7a) .......................... 200 8
Technitrol, Inc. .................................. 400 13
Thomas Industries Inc. ............................ 500 10
UCAR International Inc. (7a) ...................... 400 10
Woodward Governor Company ......................... 500 13
ELECTRONIC COMPONENTS & ACCESSORIES (4.69 %)
Aavid Thermal
Technologies, Inc. (7a) ........................ 400 9
Advanced Energy
Industries, Inc. (7a) .......................... 300 12
Aeroflex Incorporated (7a) ........................ 400 8
Alpha Industries, Inc. (7a) ....................... 200 10
Amkor Technology, Inc. (7a) ....................... 1,100 11
Amphenol Corporation -
Class A (7a) ................................... 100 4
ANADIGICS, Inc. (7a) .............................. 200 7
Artesyn Technologies, Inc. (7a) ................... 400 9
CTS Corporation ................................... 100 7
Cypress Semiconductor
Corporation (7a) ............................... 1,000 17
HADCO Corporation (7a) ............................ 200 8
International Rectifier
Corporation (7a) ............................... 600 8
KEMET Corporation (7a) ............................ 500 11
Lattice Semiconductor
Corporation (7a) ............................... 300 19
Methode Electronics, Inc. - Class A 900 21
Park Electrochemical Corp. ........................ 300 9
SDL, Inc. (7a) .................................... 100 5
SMART Modular
Technologies, Inc. (7a) ........................ 600 10
The Dii Group, Inc. (7a) .......................... 400 15
TranSwitch Corporation (7a) ....................... 200 9
Vicor Corporation (7a) ............................ 800 17
ENGINEERING & MANAGEMENT SERVICES (0.48 %)
Nichols Research Corporation (7a).................. 500 11
URS Corporation (7a) .............................. 400 12
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
FABRICATED METAL PRODUCTS (0.68 %)
Tower Automotive, Inc. (7a) ....................... 700 $ 18
Watts Industries, Inc. - Class A .................. 800 15
FOOD & KINDRED PRODUCTS (1.55 %)
Agribrands International, Inc. (7a)................ 200 8
American Italian Pasta Company -
Class A (7a) ................................... 400 12
Corn Products International, Inc. 500 15
Lance, Inc. ....................................... 500 8
Pilgrim's Pride Corporation -
Class B ........................................ 500 15
Smithfield Foods, Inc. (7a) ....................... 500 17
FOOD STORES (0.35 %)
The Great Atlantic & Pacific Tea
Company, Inc. .................................. 200 7
Whole Foods Market, Inc. (7a) ..................... 200 10
FURNITURE & FIXTURES (0.27 %)
Bush Industries, Inc. - Class A ................... 400 7
Virco Mfg. Corporation ............................ 400 6
FURNITURE & HOME FURNISHINGS STORES (0.48%)
Haverty Furniture Companies, Inc. ................. 400 14
Pier 1 Imports, Inc. .............................. 800 9
GAS PRODUCTION & DISTRIBUTION (1.72%)
Connecticut Energy Corporation .................... 300 12
Equitable Resources, Inc. ......................... 400 15
Laclede Gas Company ............................... 1,000 23
Northwest Natural Gas Company ..................... 500 12
NUI Corporation ................................... 500 11
Western Gas Resources, Inc. ....................... 600 10
HEALTH SERVICES (1.22%)
AmeriPath, Inc. (7a) .............................. 600 5
Apria Healthcare Group Inc. (7a) .................. 400 7
MedPartners, Inc. (7a) ............................ 1,100 8
Quest Diagnostics
Incorporated (7a) .............................. 700 23
Renal Care Group, Inc. (7a) ....................... 600 16
HOTELS & OTHER LODGING PLACES (0.66%)
Crestline Capital Corporation (7a)................. 700 12
Extended Stay America, Inc. (7a) .................. 1,100 13
Prime Hospitality Corp. (7a) ...................... 600 7
INDUSTRIAL MACHINERY & EQUIPMENT (5.17%)
AGCO Corporation .................................. 900 10
Astec Industries, Inc. (7a) ....................... 400 16
Columbus McKinnon Corporation...................... 500 12
See Notes to the Financial Statements, which is an integral part of this report.
90 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
Detroit Diesel Corporation ........................ 300 $ 7
DuPont Photomasks, Inc. (7a) ...................... 300 14
IDEX Corporation .................................. 200 7
Ionics, Incorporated (7a) ......................... 300 11
Kennametal Inc. ................................... 600 19
Lam Research Corporation (7a) ..................... 400 19
Lincoln Electric Holdings, Inc. ................... 700 14
NACCO Industries, Inc. - Class A .................. 300 22
Photronics, Inc. (7a) ............................. 400 10
Roper Industries, Inc. ............................ 300 10
Sauer Inc. ........................................ 1,100 12
Standex International Corporation.................. 300 8
Terex Corporation (7a) ............................ 400 12
The Timken Company ................................ 1,000 20
The Toro Company .................................. 300 12
Varian Medical Systems, Inc. ...................... 600 15
INSTRUMENTS & RELATED PRODUCTS (2.11 %)
Cognex Corporation (7a) ........................... 300 9
Dionex Corporation (7a) ........................... 300 12
GenRad, Inc. (7a) ................................. 400 8
Movado Group, Inc. ................................ 300 8
MTS Systems Corporation ........................... 800 10
Primex Technologies, Inc. ........................ 400 9
SOLA International Inc. (7a) ...................... 900 17
Tektronix, Inc. ................................... 400 12
Thermo BioAnalysis
Corporation (7a) ............................... 400 7
Wesley Jessen VisionCare, Inc. (7a)................ 300 10
INSURANCE (2.03 %)
Argonaut Group, Inc. .............................. 400 10
Capital Re Corporation ............................ 900 14
E. W. Blanch Holdings, Inc. ...................... 300 20
Fidelity National Financial, Inc. ................. 500 11
PMA Capital Corporation - Class A.................. 700 14
Stewart Information Services
Corporation .................................... 600 13
The First American Financial
Corporation .................................... 900 16
INSURANCE AGENTS, BROKERS & SERVICE (0.85 %)
Arthur J. Gallagher & Co. ......................... 600 29
Policy Management Systems
Corporation (7a) ............................... 400 12
LEATHER & LEATHER PRODUCTS (0.68 %)
Brown Shoe Company, Inc. .......................... 800 17
K-Swiss Inc. - Class A ............................ 200 9
The Timberland Company -
Class A (7a) ................................... 100 7
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (1.00 %)
AmerUs Life Holdings, Inc. -
Class A ........................................ 300 $ 8
Delphi Financial Group, Inc. -
Class A (7a) ................................... 500 18
Presidential Life Corporation ..................... 300 6
The Liberty Corporation ........................... 300 16
LUMBER & WOOD PRODUCTS (0.19 %)
Universal Forest Products, Inc. ................... 400 9
MACHINERY, EQUIPMENT & SUPPLIES (0.23 %)
National-Oilwell, Inc. (7a) ....................... 800 11
MANAGEMENT SERVICES (1.08 %)
Lason, Inc. (7a) .................................. 300 15
MAXIMUS, Inc. (7a) ................................ 300 9
The Metzler Group, Inc. (7a) ...................... 500 14
The Profit Recovery Group
International, Inc. (7a) ....................... 300 14
MANUFACTURING INDUSTRIES (0.50 %)
Callaway Golf Company ............................. 1,200 18
Oneida Ltd. ....................................... 200 6
MEDICAL INSTRUMENTS & SUPPLIES (1.20 %)
Datascope Corp. (7a) .............................. 400 13
OEC Medical Systems, Inc. (7a) .................... 500 12
ResMed Inc. (7a) .................................. 200 7
Summit Technology, Inc. (7a) ...................... 400 9
W. R. Grace & Co. (7a) ............................ 900 17
METAL MINING (1.06 %)
Cleveland-Cliffs Inc. ............................. 400 13
Cyprus Amax Minerals Company ...................... 1,800 26
Southern Peru Copper
Corporation .................................... 800 12
MINING (0.35 %)
Arch Coal, Inc. ................................... 1,200 17
MORTGAGE BANKERS AND BROKERS (0.44 %)
Doral Financial Corporation ....................... 500 9
Resource Bancshares Mortgage
Group, Inc. .................................... 1,200 12
MOTION PICTURES (0.46 %)
Hollywood Entertainment
Corporation (7a) ............................... 1,100 22
OIL & GAS EXTRACTION (2.49 %)
Barrett Resources Corporation (7a) 300 12
Forest Oil Corporation (7a) ....................... 1,000 13
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 91
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
Helmerich & Payne, Inc. ........................... 900 $ 21
Marine Drilling
Companies, Inc. (7a) ........................... 800 11
Mitchell Energy & Development
Corp. - Class A ................................ 1,200 23
Newfield Exploration
Company (7a) ................................... 500 14
Seitel, Inc. (7a) ................................. 600 10
Tom Brown, Inc. (7a) .............................. 600 9
UTI Energy Corp. (7a) ............................. 400 7
PAPER & ALLIED PRODUCTS (0.93 %)
Buckeye Technologies Inc. (7a) .................... 600 9
Potlatch Corporation .............................. 500 22
Wausau-Mosinee Paper
Corporation .................................... 800 14
PAPER & PAPER PRODUCTS (0.17 %)
School Specialty, Inc. (7a) ....................... 500 8
PAPERBOARD CONTAINERS AND BOXES (0.37 %)
ACX Technologies, Inc. (7a) ....................... 1,100 18
PERSONAL CREDIT INSTITUTIONS (0.62 %)
Advanta Corp. - Class A ........................... 800 14
Metris Companies Inc. ............................. 400 16
PERSONAL SERVICES (0.15 %)
CPI Corp. ......................................... 200 7
PHARMACEUTICALS (3.96 %)
Alpharma Inc. ..................................... 600 21
AmeriSource Health Corporation -
Class A (7a) ................................... 500 13
Bindley Western Industries, Inc. .................. 1,067 24
ChiRex Inc. (7a) .................................. 300 10
Dura Pharmaceuticals, Inc. (7a) ................... 700 8
Enzon, Inc. (7a) .................................. 400 8
Herbalife International, Inc -
Class A ........................................ 1,600 18
IDEC Pharmaceuticals
Corporation (7a) ............................... 200 15
Jones Pharma Incorporated ......................... 300 12
Medicis Pharmaceutical
Corporation - Class A (7a) ..................... 300 8
Millennium
Pharmaceuticals, Inc. (7a) ..................... 500 18
Priority Healthcare Corporation -
Class B (7a) ................................... 400 14
Roberts Pharmaceutical
Corporation (7a) ............................... 500 12
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Techne Corporation (7a) ........................... 400 $ 10
PRIMARY METAL INDUSTRIES (2.18 %)
Armco Inc. (7a) ................................... 1,500 10
Belden Inc. ....................................... 400 10
Bethlehem Steel Corporation (7a)................... 900 7
Mueller Industries, Inc. (7a) ..................... 400 14
National Steel Corporation -
Class B ........................................ 1,200 10
Oregon Steel Mills, Inc. .......................... 800 11
Quanex Corporation ................................ 400 11
Ryerson Tull, Inc. ................................ 400 9
Texas Industries, Inc. ............................ 600 23
PRINTING & PUBLISHING (1.49 %)
Big Flower Holdings, Inc. (7a) .................... 200 6
Bowne & Co., Inc. ................................. 400 5
Pulitzer Inc. ..................................... 400 19
Wallace Computer Services, Inc. ................... 800 20
World Color Press, Inc. (7a) ...................... 500 14
Ziff-Davis Inc. (7a) .............................. 500 8
RADIO & TELEVISION BROADCASTING (1.16 %)
Emmis Communications
Corporation - Class A (7a) ..................... 200 10
Entercom Communications
Corp. (7a) ..................................... 300 13
Gaylord Entertainment Company ..................... 500 15
Gray Communications
Systems, Inc. ................................. 300 6
Price Communications
Corporation (7a) ............................... 800 12
RADIO, TELEVISION, & COMPUTER STORES (0.10 %)
Trans World Entertainment
Corporation (7a) ............................... 400 5
REAL ESTATE (1.10 %)
CB Richard Ellis Services, Inc. (7a)............... 500 12
LNR Property Corporation .......................... 600 13
Security Capital Group
Incorporated - Class B (7a) .................... 1,400 20
Trammell Crow Company (7a) ........................ 500 8
RESEARCH & TESTING SERVICES (0.79 %)
Covance Inc. (7a) ................................. 800 19
Cree Research, Inc. (7a) .......................... 100 8
Pharmaceutical Product
Development, Inc. (7a) ......................... 400 11
See Notes to the Financial Statements, which is an integral part of this report.
92 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RESTAURANTS (0.91 %)
Lone Star Steakhouse &
Saloon, Inc. (7a) .............................. 700 $ 7
Luby's, Inc. ...................................... 700 11
RARE Hospitality
International, Inc. (7a) ....................... 600 15
Ruby Tuesday, Inc. ................................ 600 11
RETAIL TRADE (2.14 %)
Insight Enterprises, Inc. (7a) .................... 400 10
Jo-Ann Stores, Inc. - Class A (7a) ................ 500 8
Lands' End, Inc. (7a) ............................. 300 15
Michaels Stores, Inc. (7a) ........................ 300 9
Micro Warehouse, Inc. (7a) ........................ 600 11
OfficeMax, Inc. (7a) .............................. 1,500 18
PETCO Animal Supplies, Inc. (7a)................... 300 5
PETsMART (7a) ..................................... 1,000 10
Spiegel, Inc. - Class A (7a) ...................... 900 8
Systemax Inc. (7a) ................................ 700 9
RUBBER & MISC. PLASTIC PRODUCTS (1.08 %)
Bandag, Incorporated .............................. 500 17
Spartech Corporation .............................. 600 19
West Pharmaceutical Services, Inc. 400 16
SAVINGS INSTITUTIONS (3.03 %)
Bank United Corp. - Class A ....................... 400 16
Dime Community Bancshares, Inc. 400 9
First Financial Holdings, Inc. .................... 600 11
First Washington Bancorp, Inc. .................... 200 4
Hamilton Bancorp Inc. (7a) ........................ 300 7
JSB Financial, Inc. ............................... 200 10
MAF Bancorp, Inc. ................................ 500 12
Ocean Financial Corp. ............................. 1,300 23
Queens County Bancorp, Inc. ....................... 300 10
Richmond County Financial Corp..................... 1,400 26
St. Paul Bancorp, Inc. ........................... 700 18
SECURITY & COMMODITY BROKERS (2.20 %)
Affiliated Managers
Group, Inc. (7a) ............................... 400 12
Dain Rauscher Corporation ......................... 100 5
Hambrecht & Quist Group (7a) ...................... 400 15
Investors Financial Services Corp. ................ 300 12
Jefferies Group, Inc. - New ....................... 800 23
Southwest Securities Group, Inc. .................. 300 22
The John Nuveen Company ........................... 400 17
SHOE STORES (0.48 %)
Footstar, Inc. (7a) ............................... 300 11
Genesco Inc. (7a) ................................. 500 7
The Finish Line, Inc. - Class A (7a)............... 400 5
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
STONE, CLAY & GLASS PRODUCTS (0.89 %)
Florida Rock Industries, Inc. ..................... 400 $ 18
Giant Cement Holding, Inc. (7a) ................... 300 7
Libbey Inc. ....................................... 300 9
Mikasa, Inc. ..................................... 800 9
TELECOMMUNICATIONS (1.74 %)
Cellular Communications of Puerto
Rico, Inc. (7a) ................................ 600 17
Commonwealth Telephone
Enterprises, Inc. (7a) ......................... 300 12
Concentric Network
Corporation (7a) ............................... 400 16
Intermedia
Communications Inc. (7a) ....................... 200 6
ITC-DeltaCom, Inc. (7a) ........................... 300 8
Powertel, Inc. (7a) ............................... 400 12
US LEC Corp. - Class A (7a) ....................... 300 7
Viatel, Inc. (7a) ................................. 100 6
TEXTILE MILL PRODUCTS (0.73 %)
Springs Industries, Inc. - Class A ................ 500 22
Unifi, Inc. (7a) .................................. 600 13
TRANSPORTATION EQUIPMENT (0.27 %)
Arctic Cat Inc. ................................... 500 4
MotivePower Industries, Inc. (7a) ................. 500 9
TRUCKING & WAREHOUSING (1.08 %)
American Freightways
Corporation (7a) ............................... 300 6
Consolidated Freightways
Corporation (7a) ............................... 600 8
J.B. Hunt Transport Services, Inc. 500 8
M.S. Carriers, Inc. (7a) .......................... 300 9
USFreightways Corporation ......................... 300 14
Yellow Corporation (7a) ........................... 400 7
VARIETY STORES (0.37 %)
ShopKo Stores, Inc. (7a) .......................... 500 18
WATER TRANSPORTATION (0.33 %)
Alexander & Baldwin, Inc. ......................... 700 16
WHOLESALE TRADE DURABLE GOODS (1.08 %)
Action Performance
Companies, Inc. (7a) ........................... 300 10
Commercial Metals Company ......................... 400 11
Handleman Company (7a) ............................ 800 9
Patterson Dental Company (7a) ..................... 300 10
Reliance Steel & Aluminum Co. ..................... 300 12
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 93
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE NONDURABLE GOODS (0.39 %)
Performance Food Group
Company (7a) ................................... 300 $ 8
Universal Corporation ............................. 400 11
-------
Total Common Stocks ...............................
(cost: $ 4,631)................................................ 4,838
-------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (0.41 %)
U.S. Treasury Bill
4.73 %, due 12/09/1999 ......................... $ 20 $ 20
-----------
Total Short-Term U.S.
Government Obligations
(cost: $ 20).................................................. 20
-----------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM OBLIGATIONS (0.73 %)
Investors Bank & Trust
Company (7e)
4.25 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 35 on
07/01/1999 ..................................... $ 35 $ 35
--------
Total Short-Term Obligations
(cost: $ 35).................................................. 35
--------
Total Investment Securities
(cost: $ 4,686)............................................... $ 4,893
========
SUMMARY
Investments, at market value ...................... 101.43 % $ 4,893
Liabilities in
excess of other assets ......................... (1.43 %) (69)
--------- --------
Net assets ........................................ 100.00 % $ 4,824
========= ========
See Notes to the Financial Statements, which is an integral part of this report.
94 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE DIVIDEND GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (87.61%)
AMUSEMENT & RECREATION SERVICES (0.10%)
The Walt Disney Company ........................... 70 $ 2
APPAREL PRODUCTS (0.80%)
The Warnaco Group, Inc. ........................... 580 16
AUTOMOTIVE (1.86%)
AlliedSignal Inc. ................................. 580 37
BEVERAGES (1.05%)
PepsiCo, Inc. ..................................... 530 21
BUSINESS SERVICES (2.11%)
Equifax Inc. ...................................... 340 12
Omnicom Group Inc. ................................ 370 30
CHEMICALS & ALLIED PRODUCTS (3.46%)
Colgate-Palmolive Company ......................... 110 11
Great Lakes Chemical Corporation................... 490 23
International Flavors &
Fragrances Inc. ................................ 230 10
RPM, Inc. ......................................... 750 11
The Valspar Corporation ........................... 380 14
COMMERCIAL BANKS (7.48%)
Bank of America Corporation ....................... 230 17
Bank One Corporation .............................. 320 19
Huntington Bancshares
Incorporated ................................... 160 6
Mellon Bank Corporation ........................... 650 24
Mercantile Bancorporation Inc. ................... 260 15
The Bank of New York
Company, Inc. .................................. 580 21
U.S. Bancorp ...................................... 350 12
Wells Fargo & Company ............................. 820 35
COMPUTER & DATA PROCESSING SERVICES (2.86%)
Automatic Data Processing, Inc. ................... 240 11
Galileo International, Inc. ....................... 750 39
IMS Health Incorporated ........................... 230 7
COMPUTER & OFFICE EQUIPMENT (1.96%)
Hewlett-Packard Company ........................... 400 39
DRUG STORES & PROPRIETARY STORES (0.55 )
CVS Corporation ................................... 210 11
ELECTRIC SERVICES (1.50%)
DQE, Inc. ......................................... 450 18
TECO Energy, Inc. ................................. 520 12
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.36%)
General Electric Company .......................... 110 $ 12
Hubbell Incorporated - Class B .................... 250 11
Raychem Corporation ............................... 650 24
ELECTRONIC COMPONENTS & ACCESSORIES (0.15%)
Linear Technology Corporation ..................... 50 3
ENVIRONMENTAL SERVICES (0.70%)
Rentokil Initial PLC .............................. 3,700 14
FABRICATED METAL PRODUCTS (1.76%)
Danaher Corporation ............................... 20 1
Masco Corporation ................................. 710 21
The Stanley Works ................................. 410 13
FINANCE (2.51%)
Fannie Mae ........................................ 480 33
Freddie Mac ....................................... 290 17
FOOD & KINDRED PRODUCTS (2.51%)
General Mills, Inc. ............................... 120 10
McCormick & Company,
Incorporated ................................... 400 13
Philip Morris Companies Inc. ...................... 670 27
FOOD STORES (1.00%)
Albertson's Inc. .................................. 384 20
HOLDING & OTHER INVESTMENT OFFICES (5.57%)
Archstone Communities Trust ....................... 880 19
Chelsea GCA Realty, Inc. .......................... 370 14
Cousins Properties Incorporated ................... 360 12
Crescent Real Estate Equities
Company ........................................ 800 19
Nationwide Health
Properties, Inc. ............................... 270 5
Reckson Associates Realty Corp. ................... 670 16
Vornado Realty Trust .............................. 280 10
Weeks Corporation ................................. 530 16
INSTRUMENTS & RELATED PRODUCTS (1.15%)
Analogic Corporation .............................. 330 10
Raytheon Company - Class B ........................ 180 13
INSURANCE (5.42%)
ACE Limited ....................................... 890 25
Citigroup Inc. .................................... 560 27
PartnerRe Ltd. .................................... 580 22
XL Captial Ltd. - Class A ......................... 600 34
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 95
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE DIVIDEND GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INSURANCE AGENTS, BROKERS & SERVICE (0.35%)
Marsh & McLennan
Companies, Inc. ................................ 90 $ 7
MANAGEMENT SERVICES (1.10%)
The ServiceMaster Company ......................... 1,190 22
MANUFACTURED HOMES (0.75%)
Manufactured Home
Communities, Inc. .............................. 580 15
MANUFACTURING INDUSTRIES (2.26%)
Hasbro, Inc. ...................................... 520 15
Mattel, Inc. ...................................... 510 13
Tomkins PLC ....................................... 3,700 16
Tomkins PLC - Sponsored ADR ....................... 80 1
MEDICAL INSTRUMENTS & SUPPLIES (1.00%)
Teleflex Incorporated ............................. 460 20
MOTOR VEHICLES, PARTS & SUPPLIES (0.45%)
Genuine Parts Company ............................. 270 9
PAPER & ALLIED PRODUCTS (0.75%)
Kimberly-Clark Corporation ........................ 260 15
PERSONAL CREDIT INSTITUTIONS (0.95%)
Associates First Capital
Corporation - Class A .......................... 440 19
PERSONAL SERVICES (1.00 %)
H&R Block, Inc. ................................... 390 20
PETROLEUM REFINING (6.02 %)
Amerada Hess Corporation .......................... 240 14
BP Amoco PLC - Sponsored ADR ...................... 300 33
Chevron Corporation ............................... 150 14
Mobil Corporation ................................. 360 36
Royal Dutch Petroleum Company -
NY Registered Shares ........................... 390 23
PHARMACEUTICALS (8.49 %)
Abbott Laboratories ............................... 440 20
American Home Products
Corporation .................................... 390 22
Bristol-Myers Squibb Company ...................... 570 39
Cardinal Health, Inc. ............................. 180 12
Johnson & Johnson ................................. 240 24
Merck & Co., Inc. ................................. 180 13
Pfizer Inc. ....................................... 110 12
Schering-Plough Corporation ....................... 270 14
Warner-Lambert Company ............................ 190 13
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
PRINTING & PUBLISHING (1.96 %)
The Reynolds and Reynolds
Company - Class A .............................. 640 $ 15
Tribune Company ................................... 210 18
Wolters Kluwer NV ................................. 150 6
REAL ESTATE (3.01 %)
Arden Realty, Inc. ................................ 470 12
ProLogis Trust .................................... 1,490 30
Starwood Hotels & Resorts
Worldwide, Inc. ................................ 580 18
RUBBER & MISC. PLASTIC PRODUCTS (0.65 %)
NIKE, Inc. - Class B .............................. 210 13
SECURITY & COMMODITY BROKERS (1.55 %)
Waddell & Reed Financial, Inc. -
Class A ........................................ 100 3
Waddell & Reed Financial, Inc. -
Class B ........................................ 1,030 28
STONE, CLAY & GLASS PRODUCTS (0.80 %)
Newell Rubbermaid Inc. ............................ 340 16
TELECOMMUNICATIONS (4.86 %)
Alltel Corporation ................................ 420 30
GTE Corporation ................................... 320 24
MediaOne Group, Inc. (7a) ......................... 50 4
SBC Communications Inc. ........................... 670 39
TEXTILE MILL PRODUCTS (0.85 %)
Sara Lee Corporation .............................. 750 17
TRANSPORTATION & PUBLIC UTILITIES (0.85 %)
C.H. Robinson Worldwide, Inc. ..................... 450 17
VARIETY STORES (1.00 %)
Dayton Hudson Corporation ......................... 30 2
Family Dollar Stores, Inc. ........................ 740 18
WATER TRANSPORTATION (0.90 %)
Carnival Corporation .............................. 180 9
Royal Caribbean Cruises Ltd. ...................... 210 9
WHOLESALE TRADE NONDURABLE GOODS (1.20 %)
Richfood Holdings, Inc. ........................... 900 16
SYSCO Corporation ................................. 280 8
--------
Total Common Stocks
(cost: $ 1,717) ................................... 1,747
--------
See Notes to the Financial Statements, which is an integral part of this report.
96 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE DIVIDEND GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (13.04 %)
Fannie Mae
5.14 %, due 07/01/1999 ......................... $ 100 $ 100
Farmer Mac
5.00 %, due 07/06/1999 ......................... 40 40
Farmer Mac
5.05 %, due 07/14/1999 ......................... 120 120
-------
Total Short-Term U.S.
Government Obligations
(cost: $ 260)................................................ 260
-------
Total Investment Securities
(cost: $ 1,977).............................................. $ 2,007
=======
SUMMARY
Investments, at market value ...................... 100.65% $ 2,007
Liabilities in
excess of other assets ......................... (0.65)% (13)
--------- -------
Net assets ........................................ 100.00% $ 1,994
========= =======
INVESTMENTS BY COUNTRY
MARKET
VALUE PERCENTAGE
--------- ----------
Netherlands ....................................... $ 6 0.30 %
United Kingdom .................................... 30 1.49 %
United States ..................................... 1,971 98.21 %
--------- ---------
Investments, at market value ..................... $ 2,007 100.00 %
========= =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 97
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (98.49 %)
AEROSPACE (0.47 %)
AAR CORP. ......................................... 600 $ 14
Triumph Group, Inc. (7a) .......................... 500 13
AGRICULTURE (0.07 %)
Veterinary Centers of
America, Inc. (7a) ............................. 300 4
AIR TRANSPORTATION (0.70 %)
Alaska Air Group, Inc. (7a) ....................... 300 13
Comair Holdings, Inc. ............................. 900 19
Mesaba Holdings, Inc. (7a) ........................ 600 8
AMUSEMENT & RECREATION SERVICES (1.10 %)
Premier Parks Inc. (7a) ........................... 900 33
SFX Entertainment, Inc. -
Class A (7a) ................................... 450 30
APPAREL & ACCESSORY STORES (1.33 %)
Pacific Sunwear of
California, Inc. (7a) .......................... 975 24
Ross Stores, Inc. ................................. 300 15
The Buckle, Inc. (7a) ............................. 600 17
The Men's Wearhouse, Inc. (7a) .................... 800 20
APPAREL PRODUCTS (0.79 %)
Jones Apparel Group, Inc. (7a) .................... 700 24
Quiksilver, Inc. (7a) ............................. 800 21
AUTO REPAIR, SERVICES & PARKING (0.30 %)
Avis Rent A Car, Inc. (7a) ........................ 600 17
AUTOMOTIVE (0.68 %)
Gentex Corporation (7a) ........................... 1,100 31
Group 1 Automotive, Inc. (7a) ..................... 400 8
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.53 %)
O'Reilly Automotive, Inc. (7a) .................... 600 30
BUSINESS SERVICES (4.90 %)
Catalina Marketing
Corporation (7a) ............................... 350 32
CORT Business Services
Corporation (7a) ............................... 100 2
infoUSA Inc. - Class A (7a) ....................... 200 2
infoUSA Inc. - Class B (7a) ....................... 200 2
Modis Professional
Services, Inc. (7a) ............................ 2,000 28
National Data Corporation ......................... 800 34
NCO Group, Inc. (7a) .............................. 900 34
NOVA Corporation (7a) ............................. 900 23
Outdoor Systems, Inc. (7a) ........................ 700 26
Professional Staff PLC -
Sponsored ADR (7a) ............................. 1,300 8
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Rent-A-Center, Inc. (7a) .......................... 1,000 $ 24
Rent-Way, Inc. (7a) ............................... 900 22
Romac International, Inc. (7a) .................... 1,300 12
StaffMark, Inc. (7a) .............................. 900 9
Valassis Communications, Inc. (7a)................. 600 22
CHEMICALS & ALLIED PRODUCTS (0.47 %)
MacDermid, Incorporated ........................... 300 14
Smith International, Inc. (7a) .................... 300 13
COMMERCIAL BANKS (2.21 %)
City National Corporation ......................... 600 22
Commerce Bancorp, Inc. ............................ 550 24
Community First Bankshares, Inc. .................. 1,200 29
Concord EFS, Inc. (7a) ............................ 700 30
North Fork Bancorporation, Inc. ................... 1,000 21
COMMUNICATION (1.54 %)
American Tower Corporation -
Class A (7a) ................................... 1,000 24
Crown Castle
International Corp. (7a) ....................... 800 17
EarthLink Network, Inc. (7a) ...................... 300 18
TV Guide, Inc. - Class A (7a) ..................... 800 29
COMMUNICATIONS EQUIPMENT (2.28 %)
Comverse Technology, Inc. (7a) .................... 600 45
Gilat Satellite Networks (7a) ..................... 600 32
Inter-Tel, Incorporated ........................... 500 9
InterVoice, Inc. (7a) ............................. 1,300 19
Polycom, Inc. (7a) ................................ 500 20
Premisys
Communications, Inc. (7a) ...................... 700 5
COMPUTER & DATA PROCESSING SERVICES (17.19 %)
Affiliated Computer Services, Inc. -
Class A (7a) ................................... 600 30
American Management Systems,
Incorporated (7a) .............................. 300 10
AVT Corporation (7a) .............................. 500 19
Cadence Design Systems, Inc. (7a).................. 900 11
CIBER, Inc. (7a) .................................. 900 17
Citrix Systems, Inc. (7a) ......................... 600 34
Clarify Inc. (7a) ................................. 400 17
Cognos, Inc. (7a) ................................. 600 13
Cotelligent, Inc. (7a) ............................ 700 5
Data Processing Resources
Corporation (7a) ............................... 600 14
DST Systems, Inc. (7a) ............................ 450 28
Electronic Arts Inc. (7a) ......................... 550 30
Engineering Animation, Inc. (7a) .................. 400 8
See Notes to the Financial Statements, which is an integral part of this report.
98 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
FactSet Research Systems Inc. ..................... 350 $ 20
Great Plains Software, Inc. (7a) .................. 400 19
Hyperion Solutions
Corporation (7a) ............................... 1,100 20
IMRglobal Corp. (7a) .............................. 700 13
International Network Services (7a) 600 24
Intuit Inc. (7a) .................................. 350 32
Jack Henry & Associates, Inc. ..................... 400 16
Keane, Inc. (7a) .................................. 600 14
Legato Systems, Inc. (7a) ......................... 500 29
Macromedia, Inc. (7a) ............................. 350 12
Mapics, Inc. (7a) ................................. 400 4
Mastech Corporation (7a) .......................... 1,200 22
MedQuist Inc. (7a) ................................ 700 31
Mercury Interactive
Corporation (7a) ............................... 500 18
Metamor Worldwide, Inc. (7a) ...................... 1,000 24
NetGravity, Inc. (7a) ............................. 600 14
Networks Associates, Inc. (7a) .................... 600 9
Pegasus Systems, Inc. (7a) ........................ 400 15
Peregrine Systems, Inc. (7a) ...................... 600 15
PSINet Inc. (7a) .................................. 200 9
QRS Corporation (7a) .............................. 450 35
Saville Systems PLC -
Sponsored ADR (7a) ............................. 1,200 17
Sterling Commerce, Inc. (7a) ...................... 500 18
Summit Design, Inc. (7a) .......................... 1,700 5
SunGard Data Systems Inc. (7a) .................... 700 24
Sykes Enterprises,
Incorporated (7a) 800 27
Symantec Corporation (7a) ......................... 600 15
Synopsys, Inc. (7a) ............................... 700 39
The BISYS Group, Inc. (7a) ........................ 550 32
Transaction Systems
Architects, Inc. - Class A (7a) ................ 800 31
USinternetworking, Inc. (7a) ...................... 450 19
USWeb Corporation (7a) ............................ 1,100 24
VERITAS Software
Corporation (7a) 450 43
Visio Corporation (7a) ............................ 400 15
WebTrends Corporation (7a) ........................ 600 28
Wind River Systems, Inc. (7a) ..................... 900 14
COMPUTER & OFFICE EQUIPMENT (4.86 %)
Black Box Corporation (7a) ........................ 500 25
Cybex Computer Products
Corporation (7a) ............................... 1,000 28
Electronics for Imaging, Inc. (7a) ................ 400 21
Lexmark International
Group, Inc. - Class A (7a) ..................... 250 17
National Computer System, Inc. .................... 700 24
National Instruments
Corporation (7a) ............................... 800 32
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (CONTINUED)
Proxim, Inc. (7a) ................................. 1,000 $ 57
Security Dynamics
Technologies, Inc. (7a) ........................ 1,200 26
Symbol Technologies, Inc. ......................... 1,250 46
CONSTRUCTION (0.60 %)
Dycom Industries, Inc. (7a) ....................... 600 34
DEPARTMENT STORES (0.37 %)
The Neiman Marcus
Group, Inc. (7a) .............................. 800 21
DRUG STORES & PROPRIETARY STORES (0.61 %)
Duane Reade Inc. (7a) ............................. 700 21
Omnicare, Inc. .................................... 1,100 14
EDUCATIONAL SERVICES (1.56 %)
Apollo Group, Inc. - Class A (7a) ................. 1,000 27
ITT Educational Services, Inc. (7a)................ 500 13
Learning Tree
International, Inc. (7a) ....................... 1,200 13
Strayer Education, Inc. ........................... 400 12
Sylvan Learning Systems, Inc. (7a)................. 900 24
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.60 %)
American Power Conversion
Corporation (7a) ............................... 600 12
SLI, Inc. (7a) .................................... 800 22
ELECTRONIC COMPONENTS & ACCESSORIES (8.51 %)
Analog Devices, Inc. (7a) ......................... 350 18
Burr-Brown Corporation (7a) ....................... 1,000 37
Dallas Semiconductor Corporation 600 30
Etec Systems, Inc. (7a) ........................... 400 13
Lattice Semiconductor
Corporation (7a) ............................... 700 44
Maxim Integrated
Products, Inc. (7a) ............................ 450 30
Micrel, Incorporated (7a) ......................... 550 41
Microchip Technology
Incorporated (7a) .............................. 600 28
Plexus Corp. (7a) ................................. 600 18
PMC-Sierra, Inc. (7a) ............................. 450 27
QLogic Corporation (7a) ........................... 450 58
Sanmina Corporation (7a) .......................... 600 46
SCI Systems, Inc. (7a) ............................ 600 29
Uniphase Corporation (7a) ......................... 225 37
Vitesse Semiconductor
Corporation (7a) ............................... 450 30
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 99
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
ENGINEERING & MANAGEMENT SERVICES (0.81 %)
META Group, Inc. (7a) ............................. 1,200 $ 18
Tetra Tech, Inc. (7a) ............................. 1,675 28
ENVIRONMENTAL SERVICES (0.74 %)
Casella Waste Systems, Inc. -
Class A (7a) ................................... 700 18
Superior Services, Inc. (7a) ...................... 900 24
FABRICATED METAL PRODUCTS (0.96 %)
NCI Building Systems, Inc. (7a) ................... 1,000 21
Simpson Manufacturing
Co., Inc. (7a) ................................. 300 14
Tower Automotive, Inc. (7a) ....................... 800 20
FOOD & KINDRED PRODUCTS (0.53 %)
Smithfield Foods, Inc. (7a) ....................... 900 30
FOOD STORES (0.25 %)
Whole Foods Market, Inc. (7a) ..................... 300 14
FURNITURE & FIXTURES (0.09 %)
Select Comfort Corporation (7a) ................... 600 5
FURNITURE & HOME FURNISHINGS (1.23 %)
Bed Bath & Beyond Inc. (7a) ....................... 400 15
Linens 'N Things, Inc. (7a) ....................... 450 20
Williams-Sonoma, Inc. (7a) ........................ 1,000 35
HEALTH SERVICES (2.33 %)
Express Scripts, Inc. (7a) ........................ 450 27
Lincare Holdings Inc. (7a) ........................ 1,000 25
Orthodontic Centers of
America, Inc. (7a) ............................. 1,700 24
Renal Care Group, Inc. (7a) ....................... 700 18
Universal Health Services, Inc. -
Class B (7a) ................................... 550 26
US Oncology, Inc. (7a) ............................ 1,100 13
HOLDING & OTHER INVESTMENT OFFICES (0.77 %)
Apartment Investment and
Management Company - Class A 700 30
Healthcare Financial
Partners, Inc. (7a) ............................ 400 14
HOTELS & OTHER LODGING PLACES (0.39 %)
Sunterra Corporation (7a) ......................... 1,600 22
INDUSTRIAL MACHINERY & EQUIPMENT (1.60 %)
Novellus Systems, Inc. (7a) ....................... 400 27
Terex Corporation (7a) ............................ 600 18
Zebra Technologies
Corporation (7a) ............................... 1,200 46
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (3.47 %)
Cytyc Corporation (7a) ............................ 1,100 $ 21
Dionex Corporation (7a) ........................... 550 22
Fossil, Inc. (7a) ................................. 300 15
Imax Corporation (7a) ............................. 1,500 34
Orbital Sciences Corporation (7a) ................. 1,200 28
Pinnacle Systems, Inc. (7a) ....................... 900 30
Teradyne, Inc. (7a) ............................... 450 32
Wesley Jessen VisionCare, Inc. (7a)................ 500 16
INSURANCE (1.35 %)
E. W. Blanch Holdings, Inc. ....................... 250 17
PacifiCare Health Systems, Inc. (7a) 250 18
Pre-Paid Legal Services, Inc. (7a) ................ 600 16
Radian Group Inc. ................................. 523 26
INSURANCE AGENTS, BROKERS & SERVICE (0.40 %)
First Health Group Corp. (7a) ..................... 900 19
INSpire Insurance
Solutions, Inc. (7a) ........................... 300 4
LEATHER & LEATHER PRODUCTS (0.18 %)
Kenneth Cole Productions, Inc. -
Class A (7a) ................................... 350 10
LIFE INSURANCE (0.30 %)
Protective Life Corporation ....................... 500 17
MACHINERY, EQUIPMENT & SUPPLIES (0.35 %)
Aviation Sales Company (7a) ....................... 350 14
MSC Industrial Direct Co., Inc. -
Class A (7a) ................................... 600 6
MANAGEMENT SERVICES (1.23 %)
First Consulting Group, Inc. (7a) ................. 1,400 15
Gartner Group, Inc. - Class A (7a)................. 400 8
Lason, Inc. (7a) .................................. 600 30
The Metzler Group, Inc. (7a) ...................... 600 17
MANUFACTURING INDUSTRIES (0.77 %)
Blyth Industries, Inc. (7a) ....................... 800 28
Steinway Musical
Instruments, Inc. (7a) ......................... 600 16
MEDICAL INSTRUMENTS & SUPPLIES (2.93 %)
DENTSPLY International Inc. ....................... 800 22
Mentor Corporation ................................ 1,100 20
Novoste Corporation (7a) .......................... 700 15
STERIS Corporation (7a) ........................... 700 14
Sybron International
Corporation (7a) ............................... 1,200 33
Ventana Medical Systems, Inc. (7a)................. 400 8
See Notes to the Financial Statements, which is an integral part of this report.
100 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS & SUPPLIES (CONTINUED)
VISX, Incorporated (7a) ........................... 700 $ 54
OIL & GAS EXTRACTION (0.88 %)
BJ Services Company (7a) .......................... 700 21
Noble Affiliates, Inc. ............................ 450 13
Oceaneering
International, Inc. (7a) ....................... 1,000 16
PERSONAL CREDIT INSTITUTIONS (0.67 %)
AmeriCredit Corp. (7a) ............................ 1,600 26
Metris Companies Inc. ............................. 300 12
PERSONAL SERVICES (0.82 %)
Carriage Services, Inc. -
Class A (7a) ................................... 700 13
G & K Services, Inc. - Class A .................... 650 34
PHARMACEUTICALS (5.42 %)
AmeriSource Health Corporation -
Class A (7a) ................................... 900 23
Barr Laboratories, Inc. (7a) ...................... 400 16
Biogen, Inc. (7a) ................................. 500 32
Chattem, Inc. (7a) ................................ 400 13
Forest Laboratories, Inc. (7a) .................... 350 16
Inhale Therapeutic
Systems, Inc. (7a) ............................. 800 19
Jones Pharma Incorporated ......................... 700 28
K-V Pharmaceutical Company -
Class A (7a) ................................... 300 5
Medco Research, Inc. (7a) ......................... 1,000 26
Priority Healthcare Corporation -
Class B (7a) ................................... 600 21
Roberts Pharmaceutical
Corporation (7a) ............................... 900 22
Serologicals Corporation (7a) ..................... 1,800 15
Shire Pharmaceuticals
Group PLC - ADR (7a) ........................... 550 14
The Liposome Company, Inc. (7a).................... 1,000 19
Theragenics Corporation (7a) ...................... 2,000 14
Watson Pharmaceuticals, Inc. (7a).................. 800 28
PRINTING & PUBLISHING (1.28 %)
Consolidated Graphics, Inc. (7a) .................. 550 28
Harte-Hanks, Inc. ................................. 700 19
Media General, Inc. - Class A ..................... 350 18
World Color Press, Inc. (7a) ...................... 300 8
RADIO & TELEVISION BROADCASTING (3.86 %)
Chancellor Media Corporation (7a) 700 39
Cox Radio, Inc. - Class A (7a) .................... 500 27
Emmis Communications
Corporation - Class A (7a) ..................... 700 35
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (CONTINUED)
Hispanic Broadcasting
Corporation (7a) ............................... 450 $ 34
Univision Communications Inc. -
Class A (7a) ................................... 550 36
USA Networks, Inc. (7a) ........................... 700 28
Young Broadcasting Inc. -
Class A (7a) ................................... 500 21
RESEARCH & TESTING SERVICES (0.91 %)
ACNielsen Corporation (7a) ........................ 800 24
Catalytica, Inc. (7a) ............................. 800 11
Covance Inc. (7a) ................................. 700 17
RESTAURANTS (2.00 %)
Applebee's International, Inc. .................... 700 21
Brinker International, Inc. (7a) .................. 700 19
Dave & Buster's, Inc. (7a) ........................ 900 26
Outback Steakhouse, Inc. (7a) ..................... 900 35
Sonic Corp. (7a) .................................. 400 13
RETAIL TRADE (2.14 %)
Barnes & Noble, Inc. (7a) ......................... 400 11
Borders Group, Inc. (7a) .......................... 200 3
CDW Computer Centers, Inc. (7a).................... 700 31
Henry Schein, Inc. (7a) ........................... 400 13
Insight Enterprises, Inc. (7a) .................... 1,400 35
Office Depot, Inc. (7a) ........................... 1,300 29
SAVINGS INSTITUTIONS (0.33 %)
Telebanc Financial
Corporation (7a) ............................... 500 19
SECURITY & COMMODITY BROKERS (1.60 %)
Affiliated Managers
Group, Inc. (7a) ............................... 900 27
Legg Mason, Inc. .................................. 600 23
Waddell & Reed Financial, Inc. -
Class A ........................................ 1,500 41
TELECOMMUNICATIONS (1.28 %)
AT&T Canada Inc. (7a) ............................. 200 13
ICG Communications, Inc. (7a) ..................... 800 17
ITC^DeltaCom, Inc. (7a) ........................... 600 17
Pacific Gateway Exchange, Inc. (7a)................ 350 10
United States Cellular
Corporation (7a) ............................... 300 16
TEXTILE MILL PRODUCTS (0.14 %)
Mohawk Industries, Inc. (7a) ...................... 250 8
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 101
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
TRANSPORTATION & PUBLIC UTILITIES (0.95 %)
Coach USA, Inc. (7a) .............................. 800 $ 34
Preview Travel, Inc. (7a) ......................... 900 20
TRUCKING & WAREHOUSING (1.03 %)
Swift Transportation Co., Inc. (7a)................ 1,400 31
USFreightways Corporation ......................... 600 28
VARIETY STORES (0.82 %)
Dollar Tree Stores, Inc. (7a) ..................... 900 40
Family Dollar Stores, Inc. ........................ 300 7
WHOLESALE TRADE DURABLE GOODS (1.47 %)
HA-LO Industries, Inc. (7a) ....................... 1,300 13
Patterson Dental Company (7a) ..................... 450 16
PSS World Medical, Inc. (7a) ...................... 1,200 13
Tech Data Corporation (7a) ........................ 500 19
Watsco, Inc. ...................................... 1,400 23
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE NONDURABLE GOODS (0.54 %)
Richfood Holdings, Inc. ........................... 700 $ 12
U.S. Foodservice (7a) ............................. 450 19
-------
Total Common Stocks
(cost: $ 5,212)................................................ 5,619
-------
Total Investment Securities
(cost: $ 5,212)............................................... $ 5,619
=======
SUMMARY
Investments, at market value ...................... 98.49% $ 5,619
Other assets
in excess of liabilities ....................... 1.51% 86
--------- -------
100.00% $ 5,705
========= =======
See Notes to the Financial Statements, which is an integral part of this report.
102 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL SALOMON ALL CAP
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
CORPORATE DEBT SECURITIES (3.03 %)
INDUSTRIAL MACHINERY & EQUIPMENT (1.36 %)
Harnischfeger Industries, Inc.
8.90 %, due 03/01/2022 ......................... $ 60 $ 37
Harnischfeger Industries, Inc.
8.70 %, due 06/15/2022 ......................... 25 16
Harnischfeger Industries, Inc.
6.88 %, due 02/15/2027 ......................... 40 25
MORTGAGE BANKERS AND BROKERS (1.34 %)
ContiFinancial Corporation
8.38 %, due 08/15/2003 ......................... 100 77
TELECOMMUNICATIONS (0.33 %)
Iridium LLC
11.25 %, due 07/15/2005 ........................ 75 19
-------
Total Corporate Debt Securities
(cost: $ 163)................................................. 174
-------
CONVERTIBLE BONDS (1.94 %)
COMMUNICATIONS EQUIPMENT (0.47 %)
Aspect Telecommunications
Corporation
Zero coupon, due 08/10/2018 .................... 125 27
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.47 %)
Sunbeam Corporation - 144A (7c)
Zero coupon, due 03/25/2018 .................... 500 84
-------
Total Convertible Bonds
(cost: $ 104).................................................. 111
-------
NUMBER OF MARKET
SHARES VALUE
--------- -----------
CONVERTIBLE PREFERRED STOCKS (0.03 %)
AUTO REPAIR, SERVICES & PARKING (0.03 %)
BTI Capital Trust (7a) ............................ 400 $ 2
-------
Total Convertible Preferred Stocks
(cost: $ 6).................................................. 2
-------
PREFERRED STOCKS (1.66 %)
MOTION PICTURES (1.66 %)
The News Corporation Limited -
Sponsored ADR .................................. 3,000 95
-------
Total Preferred Stocks
(cost: $ 91)................................................. 95
-------
COMMON STOCKS (90.38 %)
AGRICULTURE (1.43 %)
Michael Foods, Inc. ............................... 3,500 82
AUTOMOTIVE (1.15 %)
General Motors Corporation -
Class H (7a) ................................... 1,166 66
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
CHEMICALS & ALLIED PRODUCTS (2.91 %)
OM Group, Inc. .................................... 2,500 $ 86
The Geon Company .................................. 2,500 81
COMMERCIAL BANKS (4.95 %)
Fleet Financial Group, Inc. ....................... 2,000 89
Peoples Heritage Financial
Group, Inc. .................................... 4,500 85
The Bank of New York
Company, Inc. .................................. 3,000 110
COMMUNICATION (5.83 %)
NTL Incorporated (7a) ............................. 1,000 86
PanAmSat Corporation (7a) ......................... 4,000 156
Viacom Inc. - Class B (7a) ........................ 2,100 92
COMMUNICATIONS EQUIPMENT (3.64 %)
ADC Telecommunications,
Inc. (7a) ...................................... 1,500 68
Comverse Technology, Inc. (7a) .................... 800 60
Tellabs, Inc. (7a) ................................ 1,200 81
COMPUTER & DATA PROCESSING SERVICES (2.60 %)
Amdocs, Inc. (7a) ................................. 2,500 57
Legato Systems, Inc. (7a) ......................... 1,000 58
Paradigm Geophysical Ltd. (7a) .................... 5,000 34
COMPUTER & OFFICE EQUIPMENT (7.14 %)
Hewlett-Packard Company ........................... 900 90
International Business Machines
Corporation .................................... 500 65
S3 Incorporated (7a) .............................. 11,000 100
Seagate Technology, Inc. (7a) ..................... 6,000 154
DEPARTMENT STORES (3.03 %)
Federated Department
Stores, Inc. (7a) .............................. 3,300 174
ELECTRIC, GAS & SANITARY SERVICES (1.74 %)
Azurix Corp. (7a) ................................. 5,000 100
FOOD & KINDRED PRODUCTS (11.13 %)
Hormel Foods Corporation .......................... 4,000 160
John B. Sanfilippo & Son, Inc. (7a) 5,500 21
Nabisco Group Holdings Corp. ...................... 8,000 156
Philip Morris Companies Inc. ...................... 5,000 200
Tyson Foods, Inc. - Class A ....................... 4,500 101
FOOD STORES (5.00 %)
Food Lion, Inc. - Class B ......................... 18,000 207
Hannaford Bros. Co. ............................... 1,500 80
GAS PRODUCTION & DISTRIBUTION (0.89 %)
K N Energy, Inc. .................................. 3,800 51
INDUSTRIAL MACHINERY & EQUIPMENT (4.41 %)
Harnischfeger Industries, Inc. .................... 7,000 14
Ingersoll-Rand Company ............................ 1,600 103
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 103
<PAGE>
SCHEDULE OF INVESTMENTS
WRL SALOMON ALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
SpeedFam-IPEC, Inc. (7a) .......................... 4,500 $ 72
York International Corporation .................... 1,500 64
LIFE INSURANCE (1.15 %)
Protective Life Corporation ....................... 2,000 66
LUMBER & CONSTUCTION MATERIALS (1.10 %)
Vulcan Materials Company .......................... 1,300 63
METAL CANS & SHIPPING CONTAINERS (1.50 %)
Crown Cork & Seal Company, Inc. 3,000 86
MINING (1.55 %)
Martin Marietta Materials, Inc. ................... 1,500 89
OIL & GAS EXTRACTION (2.69 %)
Devon Energy Corporation .......................... 2,000 72
Suncor Energy Inc. ................................ 2,000 82
PETROLEUM REFINING (3.68 %)
Tesoro Petroleum Corporation (7a) 7,500 120
Tosco Corporation ................................. 3,500 91
PHARMACEUTICALS (2.48 %)
Pharmacia & Upjohn, Inc. .......................... 2,500 142
PRINTING & PUBLISHING (0.92 %)
Hollinger International Inc. ...................... 4,500 53
RADIO & TELEVISION BROADCASTING (1.27 %)
Hearst-Argyle Television, Inc. (7a) ............... 1,200 29
Sinclair Broadcast Group, Inc. -
Class A (7a) ................................... 2,000 33
United States Satellite Broadcasting
Company, Inc. - Class A (7a) ................... 600 11
RESEARCH & TESTING SERVICES (0.31 %)
CombiChem, Inc. (7a) .............................. 4,500 18
RESTAURANTS (0.89 %)
Fine Host Corporation (7a) ........................ 5,486 51
SAVINGS INSTITUTIONS (1.06 %)
Independence Community
Bank Corp. ..................................... 4,500 61
SECURITY & COMMODITY BROKERS (1.26 %)
The Goldman Sachs
Group, Inc. (7a) ............................... 1,000 72
TELECOMMUNICATIONS (9.32 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ........................... 2,500 92
Bell Atlantic Corporation ......................... 1,500 98
Frontier Corporation .............................. 900 53
GTE Corporation ................................... 1,100 83
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
MCI WORLDCOM, Inc. (7a) ........................... 600 $ 52
Rogers Cantel Mobile
Communications Inc. -
Class B (7a) ................................... 9,500 156
TOBACCO PRODUCTS (1.43 %)
R.J. Reynolds Tobacco
Holdings, Inc. (7a) ............................ 2,600 82
VARIETY STORES (2.79 %)
Costco Companies, Inc. (7a) ....................... 2,000 160
WHOLESALE TRADE DURABLE GOODS (1.13 %)
Latitude Communications, Inc. (7a) ................ 5,000 65
-------
Total Common Stocks
(cost: $ 5,030)............................................. 5,183
-------
NUMBER OF MARKET
CONTRACTS VALUE
--------- -----------
OPTIONS (0.16 %)
Amazon.com, Inc. Puts Strike 70,
Expires 07/17/1999 ............................. 20 $ 1
Amazon.com, Inc. Puts Strike 90,
Expires 07/17/1999 ............................. 4 (7g)
America Online, Inc. Puts Strike 100,
Expires 07/17/1999 ............................. 4 1
America Online, Inc. Puts Strike 80,
Expires 07/17/1999 ............................. 8 (7g)
Inter@ctive Week Internet Index
Puts Strike 290,
Expires 07/17/1999 ............................. 1 1
Inter@ctive Week Internet Index
Puts Strike 310,
Expires 07/17/1999 ............................. 2 2
Iridium World Communications
Ltd. Calls Strike 12.5,
Expires 07/17/1999 ............................. 8 1
Iridium World Communications
Ltd. Calls Strike 20,
Expires 07/17/1999 ............................. 16 (7g)
Iridium World Communications
Ltd. Calls Strike 20,
Expires 10/16/1999 ............................. 16 1
Iridium World Communications
Ltd. Puts Strike 5,
Expires 07/17/1999 ............................. 7 (7g)
Iridium World Communications
Ltd. Puts Strike 7.5,
Expires 07/17/1999 ............................. 13 1
Iridium World Communications
Ltd. Puts Strike 10,
Expires 07/17/1999 ............................. 7 1
-------
Total Options
(cost: $ 25)............................................... 9
-------
See Notes to the Financial Statements, which is an integral part of this report.
104 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL SALOMON ALL CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM OBLIGATIONS (4.53 %)
State Street Bank and Trust
Company (7e)
4.70 %, Repurchase Agreement
dated 6/30/1999 to be
repurchased at $ 260 on
07/01/1999 ..................................... $ 260 $ 260
--------
Total Short-Term Obligations
(cost: $ 260)................................................ 260
-------
Total Investment Securities
(cost: $ 5,679).............................................. $ 5,834
=======
SUMMARY
Investments, at market value ...................... 101.73% $ 5,834
Liabilities in
excess of other assets ......................... (1.73)% (99)
--------- -------
Net assets ........................................ 100.00% $ 5,735
========= =======
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 105
<PAGE>
SCHEDULE OF INVESTMENTS
WRL PILGRIM BAXTER MID CAP GROWTH
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (100.31 %)
AMUSEMENT & RECREATION SERVICES (2.67 %)
Premier Parks Inc. (7a) ........................... 700 $ 26
APPAREL & ACCESSORY STORES (3.80 %)
American Eagle
Outfitters, Inc. (7a) .......................... 500 23
AnnTaylor, Inc. (7a) .............................. 300 14
AUTOMOTIVE (1.75 %)
Gentex Corporation (7a) ........................... 600 17
BUSINESS CREDIT INSTITUTIONS (2.36 %)
Heller Financial, Inc. ............................ 500 14
Providian Financial Corporation ................... 100 9
BUSINESS SERVICES (8.42 %)
Lamar Advertising Company (7a) .................... 500 20
Omnicom Group Inc. ................................ 100 8
Outdoor Systems, Inc. (7a) ........................ 900 32
Snyder Communications, Inc. (7a)................... 400 13
United Rentals, Inc. (7a) ......................... 300 9
COMMUNICATION (0.62 %)
Adelphia Communications
Corporation - Class A (7a) ..................... 100 6
COMMUNICATIONS EQUIPMENT (8.01 %)
CIENA Corporation (7a) ............................ 200 6
CommScope, Inc. (7a) .............................. 300 9
Excel Switching Corporation (7a) .................. 400 12
General Instrument
Corporation (7a) ............................... 200 9
L-3 Communications
Holdings, Inc. (7a) ............................ 500 24
Newbridge Networks
Corporation (7a) ............................... 400 12
Powerwave Technologies, Inc. (7a).................. 200 6
COMPUTER & DATA PROCESSING SERVICES (17.76 %)
AboveNet
Communications Inc. (7a) ....................... 300 12
Check Point Software
Technologies, Ltd. (7a) ........................ 200 11
i2 Technologies, Inc. (7a) ........................ 300 13
InfoSpace.com, Inc. (7a) .......................... 300 14
Inktomi Corporation (7a) .......................... 200 26
Lycos, Inc. (7a) .................................. 200 18
Network Solutions, Inc. (7a) ...................... 400 32
PSINet Inc. (7a) .................................. 400 18
Sapient Corporation (7a) .......................... 100 6
Verio Inc. (7a) ................................... 200 14
VERITAS Software
Corporation (7a) ............................... 100 9
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (2.26 %)
Emulex Corporation (7a) ............................ 200 $ 22
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.05 %)
Gemstar International Group
Limited (7a) ................................... 300 20
ELECTRONIC COMPONENTS & ACCESSORIES (23.30 %)
ASM Lithography Holding NV (7a).................... 400 24
Atmel Corporation (7a) ............................ 300 8
Broadcom Corporation -
Class A (7a) ................................... 200 29
Celestica, Inc. (7a) .............................. 200 9
Conexant Systems, Inc. (7a) ....................... 300 17
LSI Logic Corporation (7a) ........................ 400 18
Maxim Integrated
Products, Inc. (7a) ............................ 200 13
MIPS Technologies, Inc. -
Class A (7a) ................................... 500 24
QLogic Corporation (7a) ........................... 200 26
Sanmina Corporation (7a) .......................... 400 30
Xilinx, Inc. (7a) ................................. 500 29
FABRICATED METAL PRODUCTS (1.23 %)
Danaher Corporation ............................... 200 12
HEALTH SERVICES (1.23 %)
Express Scripts, Inc. - Class A (7a)............... 200 12
INDUSTRIAL MACHINERY & EQUIPMENT (1.54 %)
Mettler-Toledo
International Inc. (7a) ........................ 600 15
INSTRUMENTS & RELATED PRODUCTS (0.51 %)
Waters Corporation (7a) ........................... 100 5
MEDICAL INSTRUMENTS & SUPPLIES (4.83 %)
MiniMed, Inc. (7a) ................................ 300 23
VISX, Incorporated (7a) ........................... 300 24
MOTION PICTURES (0.72 %)
CINAR Corporation - Class B (7a)................... 300 7
OIL & GAS EXTRACTION (1.44 %)
Diamond Offshore Drilling, Inc. ................... 500 14
PERSONAL CREDIT INSTITUTIONS (2.26 %)
Capital One Financial Corporation.................. 400 22
PHARMACEUTICALS (4.11 %)
Immunex Corporation (7a) .......................... 100 13
MedImmune, Inc. (7a) .............................. 400 27
See Notes to the Financial Statements, which is an integral part of this report.
106 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL PILGRIM BAXTER MID CAP GROWTH (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
RADIO, TELEVISION, & COMPUTER STORES (3.49 %)
Circuit City Stores - Circuit
City Group ................................ 200 $ 19
Tandy Corporation ............................ 300 15
RETAIL TRADE (1.33 %)
Staples, Inc. (7a) ........................... 100 3
Tiffany & Co. ................................ 100 10
SECURITY & COMMODITY BROKERS (1.13 %)
The Charles Schwab Corporation ............... 100 11
STONE, CLAY & GLASS PRODUCTS (1.44 %)
Corning Incorporated ......................... 200 14
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (2.05 %)
Metromedia Fiber
Network, Inc. (7a) ........................ 200 $ 7
Qwest Communications
International Inc. (7a) ................... 400 13
-----
Total Common Stocks
(cost: $ 903)............................................... 977
-----
Total Investment Securities
(cost: $ 903)............................................... $ 977
=====
SUMMARY
Investments, at market value. ................ 100.31 % $ 977
Liabilities in excess of
other assets .............................. (0.31)% (3)
-------- -----
Net assets ................................... 100.00 % $ 974
======== =====
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 107
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DREYFUS MID CAP
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (85.67 %)
AEROSPACE (0.99 %)
Gulfstream Aerospace
Corporation (7a) ............................... 100 $ 7
AIR TRANSPORTATION (0.57 %)
Alaska Air Group, Inc. (7a) ....................... 100 4
APPAREL & ACCESSORY STORES (4.26 %)
Abercrombie & Fitch Co. -
Class A (7a) ................................... 200 10
Ross Stores, Inc. ................................. 200 10
The TJX Companies, Inc. ........................... 300 10
APPAREL PRODUCTS (0.85 %)
Nautica Enterprises, Inc. (7a) .................... 100 2
V. F. Corporation ................................. 100 4
AUTO REPAIR, SERVICES & PARKING (0.85 %)
The Hertz Corporation - Class A ................... 100 6
AUTOMOTIVE (1.28 %)
Harley-Davidson, Inc. ............................. 50 3
Meritor Automotive, Inc. .......................... 100 3
Navistar International
Corporation (7a) ............................... 50 3
BUSINESS SERVICES (0.85 %)
Robert Half International Inc. (7a)................ 50 1
Snyder Communications, Inc. (7a)................... 100 3
Young & Rubicam Inc. .............................. 50 2
CHEMICALS & ALLIED PRODUCTS (4.11 %)
Crompton & Knowles Corporation..................... 200 4
Cytec Industries Inc. (7a) ........................ 150 5
FMC Corporation (7a) .............................. 100 7
Solutia Inc. ...................................... 200 4
The Dial Corporation .............................. 100 4
The Estee Lauder Companies Inc. -
Class A ........................................ 100 5
COMMERCIAL BANKS (5.67 %)
City National Corporation ......................... 200 7
First Tennessee National
Corporation .................................... 200 8
Mercantile Bankshares Corporation 100 4
North Fork Bancorporation, Inc. ................... 150 3
Old Kent Financial Corporation .................... 105 4
Regions Financial Corporation ..................... 200 8
Zions Bancorporation .............................. 100 6
COMMUNICATIONS EQUIPMENT (1.13 %)
Comverse Technology, Inc. (7a) .................... 100 8
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (8.94 %)
BMC Software, Inc. (7a) ........................... 100 $ 5
Citrix Systems, Inc. (7a) ......................... 100 6
Computer Task Group,
Incorporated ................................... 100 2
Compuware Corporation (7a) ........................ 200 6
Convergys Corporation (7a) ........................ 200 4
DST Systems, Inc. (7a) ............................ 50 3
Legato Systems, Inc. (7a) ......................... 100 6
NCR Corporation (7a) .............................. 200 10
Network Appliance, Inc. (7a) ...................... 50 3
Sterling Software, Inc. (7a) ...................... 100 3
The Sabre Group
Holdings, Inc. (7a) ............................ 150 10
VERITAS Software
Corporation (7a) ............................... 50 5
COMPUTER & OFFICE EQUIPMENT (2.13 %)
Apple Computer, Inc. (7a) ......................... 50 2
Lexmark International
Group, Inc. - Class A (7a) ..................... 200 13
ELECTRIC SERVICES (3.83 %)
Allegheny Energy, Inc. ............................ 100 3
Energy East Corporation ........................... 200 5
GPU, Inc. ......................................... 100 4
IPALCO Enterprises, Inc. .......................... 300 6
OGE Energy Corp. .................................. 300 7
TECO Energy, Inc. ................................. 100 2
ELECTRIC, GAS & SANITARY SERVICES (0.57 %)
Sierra Pacific Resources .......................... 100 4
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.57 %)
American Power Conversion
Corporation (7a) ............................... 200 4
ELECTRONIC COMPONENTS & ACCESSORIES (8.96 %)
Altera Corporation (7a) ........................... 400 14
Linear Technology Corporation ..................... 200 13
Maxim Integrated
Products, Inc. (7a) ............................ 200 13
RF Micro Devices, Inc. (7a) ....................... 100 7
Sanmina Corporation (7a) .......................... 100 8
Uniphase Corporation (7a) ......................... 50 8
FOOD & KINDRED PRODUCTS (1.42 %)
Hormel Foods Corporation .......................... 100 4
Lancaster Colony Corporation ...................... 100 3
The Earthgrains Company ........................... 100 3
See Notes to the Financial Statements, which is an integral part of this report.
108 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DREYFUS MID CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
FURNITURE & FIXTURES (2.41 %)
Furniture Brands
International, Inc. (7a) ....................... 200 $ 6
Herman Miller, Inc. ............................... 100 2
Johnson Controls, Inc. ............................ 50 3
Leggett & Platt, Incorporated ..................... 200 6
GAS PRODUCTION & DISTRIBUTION (2.41 %)
El Paso Energy Corporation ........................ 100 4
KeySpan Corporation ............................... 200 5
Nicor Inc. ........................................ 100 4
Questar Corporation ............................... 200 4
HEALTH SERVICES (1.70 %)
Health Management
Associates, Inc. (7a) .......................... 350 4
Lincare Holdings Inc. (7a) ........................ 100 3
Universal Health Services, Inc. -
Class B (7a) ................................... 100 5
INDUSTRIAL MACHINERY & EQUIPMENT (0.43 %)
Briggs & Stratton Corporation ..................... 50 3
INSTRUMENTS & RELATED PRODUCTS (0.71 %)
Waters Corporation (7a) ........................... 100 5
INSURANCE (1.84 %)
AFLAC Incorporated ................................ 50 2
Radian Group Inc. ................................. 100 5
The PMI Group, Inc. ............................... 100 6
LIFE INSURANCE (0.71 %)
Nationwide Financial
Services, Inc. - Class A ....................... 100 5
LUMBER & CONSTRUCTION MATERIALS (1.56 %)
Crane Co. ......................................... 200 6
Vulcan Materials Company .......................... 100 5
LUMBER & WOOD PRODUCTS (0.71 %)
Louisiana-Pacific Corporation ..................... 200 5
MANUFACTURING INDUSTRIES (0.57 %)
International Game Technology ..................... 200 4
MEDICAL INSTRUMENTS & SUPPLIES (2.27 %)
Biomet, Inc. ...................................... 200 8
VISX, Incorporated (7a) ........................... 100 8
MOTION PICTURES (0.85 %)
CNET, Inc. (7a) ................................... 100 6
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (1.84 %)
Diamond Offshore Drilling, Inc. ................... 150 $ 4
Transocean Offshore Inc. .......................... 150 4
Vastar Resources, Inc. ............................ 100 5
PETROLEUM REFINING (0.85 %)
Sunoco, Inc. ...................................... 100 3
Tosco Corporation ................................. 100 3
PHARMACEUTICALS (4.11 %)
Bergen Brunswig Corporation -
Class A ........................................ 100 2
Biogen, Inc. (7a) ................................. 200 13
MedImmune, Inc. (7a) .............................. 100 7
Watson Pharmaceuticals, Inc. (7a).................. 200 7
PRIMARY METAL INDUSTRIES (0.28 %)
AK Steel Holding Corporation ...................... 100 2
PRINTING & PUBLISHING (1.84 %)
A. H. Belo Corporation - Class A .................. 150 3
Knight-Ridder, Inc. ............................... 100 5
Pulitzer Inc. ..................................... 100 5
RADIO & TELEVISION BROADCASTING (0.43 %)
Cox Radio, Inc. - Class A (7a) .................... 50 3
RADIO, TELEVISION, & COMPUTER STORES (0.99 %)
Best Buy Co., Inc. (7a) ........................... 100 7
RAILROADS (0.85 %)
Kansas City Southern
Industries, Inc. ............................... 100 6
RESEARCH & TESTING SERVICES (1.13 %)
Quintiles Transnational Corp. (7a)................. 200 8
RESIDENTIAL BUILDING CONSTRUCTION (0.28 %)
Lennar Corporation ................................ 100 2
RESTAURANTS (0.85 %)
Bob Evans Farms, Inc. ............................. 100 2
Brinker International, Inc. (7a) .................. 150 4
RETAIL TRADE (1.13 %)
Zale Corporation (7a) ............................. 200 8
SAVINGS INSTITUTIONS (1.84 %)
Dime Bancorp, Inc. ................................ 150 3
Golden West Financial
Corporation .................................... 100 10
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 109
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DREYFUS MID CAP (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
SECURITY & COMMODITY BROKERS (2.27 %)
A.G. Edwards, Inc. ................................ 200 $ 6
Paine Webber Group Inc. ........................... 50 2
T. Rowe Price Associates, Inc. .................... 200 8
TELECOMMUNICATIONS (0.85 %)
CenturyTel, Inc. .................................. 150 6
TRANSPORTATION EQUIPMENT (0.43 %)
Trinity Industries, Inc. .......................... 100 3
VARIETY STORES (0.57 %)
Dollar Tree Stores, Inc. (7a) ..................... 100 4
WATER TRANSPORTATION (0.71 %)
Tidewater Inc. .................................... 150 5
WHOLESALE TRADE DURABLE GOODS (0.28 %)
Patterson Dental Company (7a) ..................... 50 2
WHOLESALE TRADE NONDURABLE GOODS (0.99 %)
SUPERVALU INC. .................................... 100 3
U.S. Foodservice (7a) ............................. 100 4
-----
Total Common Stocks
(cost: $ 577).................................................. 604
-----
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM OBLIGATIONS (5.39 %)
Investors Bank & Trust
Company (7e)
4.25 %, Repurchase Agreement
dated 06/30/1999 to be
repurchased at $ 38 on
07/01/1999 ..................................... $ 38 $ 38
-----
Total Short-Term Obligations
(cost: $ 38)................................................. 38
-----
Total Investment Securities
(cost: $ 615)................................................ $ 642
=====
SUMMARY
Investments, at market value....................... 91.06% $ 642
Other assets in excess of liabilities ............. 8.94% 63
-------- -----
Net assets ........................................ 100.00% $ 705
======== =====
See Notes to the Financial Statements, which is an integral part of this report.
110 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL
J.P. MORGAN AEGON
MONEY MARKET BOND
<S> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 247,208 $ 161,420
========= =========
Foreign cash, at cost ...................................... $ 0 $ 0
========= =========
Investments in securities, at market value ................. $ 247,208 $ 157,898
Cash ....................................................... 111 95
Foreign cash ............................................... 0 0
Cash collateral for securities on loan ..................... 0 16,884
Receivables:
Securities sold ........................................... 0 0
Interest .................................................. 1,227 2,048
Dividends ................................................. 0 0
Dividend reclaims receivable .............................. 0 0
Foreign currency contracts ................................ 0 0
Other ..................................................... 0 249
--------- ---------
Total assets ............................................. 248,546 177,174
--------- ---------
LIABILITIES:
Securities purchased ....................................... 0 0
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 89 65
Due to custodian .......................................... 0 0
Dividends to shareholders ................................. 988 0
Deposits for securities on loan ........................... 0 16,884
Foreign currency contracts ................................ 0 0
Other fees ................................................ 8 254
--------- ---------
Total liabilities ........................................ 1,085 17,203
--------- ---------
Net assets .............................................. $ 247,461 $ 159,971
========= =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 450,000 50,000
========= =========
Capital stock ($ .01 par value)............................. $ 2,475 $ 142
Additional paid-in-capital ................................. 244,986 163,145
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... 0 4,557
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 0 (4,351)
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 0 (3,522)
Futures contracts ......................................... 0 0
Foreign currency transactions ............................. 0 0
--------- ---------
Net assets applicable to outstanding shares of capital ..... $ 247,461 $ 159,971
========= =========
Shares outstanding ......................................... 247,461 14,181
========= =========
Net asset value and offering price per share ............... $ 1.00 $ 11.28
========= =========
<CAPTION>
WRL
WRL WRL LKCM
JANUS JANUS STRATEGIC
GROWTH GLOBAL TOTAL RETURN
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 1,843,650 $ 838,729 $ 482,889
=========== =========== =========
Foreign cash, at cost ...................................... $ 0 $ 0 $ 0
=========== =========== =========
Investments in securities, at market value ................. $ 3,034,360 $ 1,242,283 $ 610,919
Cash ....................................................... 5,200 1,546 50
Foreign cash ............................................... 0 0 0
Cash collateral for securities on loan ..................... 224,800 105,983 42,633
Receivables:
Securities sold ........................................... 52,427 5,634 0
Interest .................................................. 385 17 3,255
Dividends ................................................. 483 916 393
Dividend reclaims receivable .............................. 7 964 3
Foreign currency contracts ................................ 2,943 12,808 0
Other ..................................................... 1,916 886 364
----------- ----------- ---------
Total assets ............................................. 3,322,521 1,371,037 657,617
----------- ----------- ---------
LIABILITIES:
Securities purchased ....................................... 12,564 4,905 2,687
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 2,034 869 431
Due to custodian .......................................... 0 98 0
Dividends to shareholders ................................. 0 0 0
Deposits for securities on loan ........................... 224,800 105,983 42,633
Foreign currency contracts ................................ 1,957 1,571 0
Other fees ................................................ 1,794 928 387
----------- ----------- ---------
Total liabilities ........................................ 243,149 114,354 46,138
----------- ----------- ---------
Net assets .............................................. $ 3,079,372 $ 1,256,683 $ 611,479
=========== =========== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 100,000 100,000 75,000
=========== =========== =========
Capital stock ($ .01 par value)............................. $ 447 $ 472 $ 361
Additional paid-in-capital ................................. 955,090 798,107 463,942
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... (552) (716) 6,097
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 932,691 44,077 13,049
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 1,190,710 403,554 128,030
Futures contracts ......................................... 0 0 0
Foreign currency transactions ............................. 986 11,189 0
----------- ----------- ---------
Net assets applicable to outstanding shares of capital ..... $ 3,079,372 $ 1,256,683 $ 611,479
=========== =========== =========
Shares outstanding ......................................... 44,669 47,193 36,075
=========== =========== =========
Net asset value and offering price per share ............... $ 68.94 $ 26.63 $ 16.95
=========== =========== =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 111
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL
VKAM ALGER WRL FEDERATED WRL
EMERGING AGGRESSIVE AEGON GROWTH & DEAN ASSET
GROWTH GROWTH BALANCED INCOME ALLOCATION
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 763,302 $ 519,850 $ 84,866 $ 84,822 $ 316,022
=========== ========= ========= ======== =========
Foreign cash, at cost ...................................... $ 0 $ 0 $ 0 $ 0 $ 0
=========== ========= ========= ======== =========
Investments in securities, at market value ................. $ 1,067,472 $ 727,457 $ 102,364 $ 86,754 $ 338,001
Cash ....................................................... 720 20 9,763 50 998
Foreign cash ............................................... 0 0 0 0 0
Cash collateral for securities on loan ..................... 173,643 71,494 23,803 3,494 40,984
Receivables:
Securities sold ........................................... 17,385 7,066 0 91 3,668
Interest .................................................. 23 12 422 1 2,226
Dividends ................................................. 176 70 95 341 373
Dividend reclaims receivable .............................. 2 2 3 0 3
Foreign currency contracts ................................ 0 0 0 0 0
Other ..................................................... 1,250 507 199 25 342
----------- --------- --------- -------- ---------
Total assets ............................................. 1,260,671 806,628 136,649 90,756 386,595
----------- --------- --------- -------- ---------
LIABILITIES:
Securities purchased ....................................... 14,025 9,757 0 1,630 2,181
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 717 481 78 58 248
Due to custodian .......................................... 0 0 0 0 0
Dividends to shareholders ................................. 0 0 0 0 0
Deposits for securities on loan ........................... 173,643 71,494 23,803 3,494 40,984
Foreign currency contracts ................................ 0 0 0 0 0
Other fees ................................................ 1,215 513 203 34 352
----------- --------- --------- -------- ---------
Total liabilities ........................................ 189,600 82,245 24,084 5,216 43,765
----------- --------- --------- -------- ---------
Net assets .............................................. $ 1,071,071 $ 724,383 $ 112,565 $ 85,540 $ 342,830
=========== ========= ========= ======== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 75,000 75,000 50,000 50,000 75,000
=========== ========= ========= ======== =========
Capital stock ($ .01 par value)............................. $ 336 $ 285 $ 85 $ 69 $ 256
Additional paid-in-capital ................................. 559,578 438,283 95,499 80,630 314,924
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... (2,129) (1,515) 687 1,799 4,794
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 209,116 79,723 (1,204) 1,110 877
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 304,170 207,607 17,498 1,932 21,979
Futures contracts ......................................... 0 0 0 0 0
Foreign currency transactions ............................. 0 0 0 0 0
----------- --------- --------- -------- ---------
Net assets applicable to outstanding shares of capital ..... $ 1,071,071 $ 724,383 $ 112,565 $ 85,540 $ 342,830
=========== ========= ========= ======== =========
Shares outstanding ......................................... 33,645 28,468 8,470 6,924 25,562
=========== ========= ========= ======== =========
Net asset value and offering price per share ............... $ 31.84 $ 25.45 $ 13.29 $ 12.35 $ 13.41
=========== ========= ========= ======== =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
112 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL
C.A.S.E. NWQ
GROWTH VALUE EQUITY
<S> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 86,946 $ 155,624
======== =========
Foreign cash, at cost ...................................... $ 0 $ 0
======== =========
Investments in securities, at market value ................. $ 92,708 $ 176,755
Cash ....................................................... 0 50
Foreign cash ............................................... 0 0
Cash collateral for securities on loan ..................... 13,376 12,350
Receivables:
Securities sold ........................................... 0 134
Interest .................................................. 12 3
Dividends ................................................. 41 220
Dividend reclaims receivable .............................. 0 0
Foreign currency contracts ................................ 0 0
Other ..................................................... 72 67
-------- ---------
Total assets ............................................. 106,209 189,579
-------- ---------
LIABILITIES:
Securities purchased ....................................... 61 0
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 64 126
Due to custodian .......................................... 2,058 0
Dividends to shareholders ................................. 0 0
Deposits for securities on loan ........................... 13,376 12,350
Foreign currency contracts ................................ 0 0
Other fees ................................................ 83 79
-------- ---------
Total liabilities ........................................ 15,642 12,555
-------- ---------
Net assets .............................................. $ 90,567 $ 177,024
======== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 50,000 50,000
======== =========
Capital stock ($ .01 par value)............................. $ 58 $ 124
Additional paid-in-capital ................................. 79,880 155,951
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... (157) 628
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 5,024 (810)
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 5,762 21,131
Futures contracts ......................................... 0 0
Foreign currency transactions ............................. 0 0
-------- ---------
Net assets applicable to outstanding shares of capital ..... $ 90,567 $177,024
======== =========
Shares outstanding ......................................... 5,783 12,377
======== =========
Net asset value and offering price per share ............... $ 15.66 $ 14.30
======== =========
<CAPTION>
WRL
GE/SCOTTISH WRL
EQUITABLE WRL THIRD
INTERNATIONAL GE AVENUE
EQUITY U.S. EQUITY VALUE
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 27,034 $ 125,571 $ 17,503
======== ========= ========
Foreign cash, at cost ...................................... $ 969 $ 0 $ 18
======== ========= ========
Investments in securities, at market value ................. $ 28,823 $ 147,920 $ 16,679
Cash ....................................................... 6,946 10,764 3,167
Foreign cash ............................................... 975 0 18
Cash collateral for securities on loan ..................... 0 11,612 0
Receivables:
Securities sold ........................................... 271 84 0
Interest .................................................. 11 31 9
Dividends ................................................. 29 134 22
Dividend reclaims receivable .............................. 58 3 0
Foreign currency contracts ................................ 6 0 0
Other ..................................................... 86 185 0
-------- --------- --------
Total assets ............................................. 37,205 170,733 19,895
-------- --------- --------
LIABILITIES:
Securities purchased ....................................... 456 17 189
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 30 110 14
Due to custodian .......................................... 0 0 0
Dividends to shareholders ................................. 0 0 0
Deposits for securities on loan ........................... 0 11,612 0
Foreign currency contracts ................................ 0 0 0
Other fees ................................................ 15 98 3
-------- --------- --------
Total liabilities ........................................ 501 11,837 206
-------- --------- --------
Net assets .............................................. $ 36,704 $ 158,896 $ 19,689
======== ========= ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 50,000 50,000 50,000
======== ========= ========
Capital stock ($ .01 par value)............................. $ 30 $ 99 $ 21
Additional paid-in-capital ................................. 33,670 131,009 20,461
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... 141 297 265
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 1,072 4,945 (234)
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 1,789 22,349 (824)
Futures contracts ......................................... (10) 197 0
Foreign currency transactions ............................. 12 0 0
-------- --------- --------
Net assets applicable to outstanding shares of capital ..... $ 36,704 $ 158,896 $ 19,689
======== ========= ========
Shares outstanding ......................................... 3,014 9,872 2,073
======== ========= ========
Net asset value and offering price per share ............... $ 12.18 $ 16.10 $ 9.50
======== ========= ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 113
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
J.P. MORGAN WRL WRL WRL
REAL ESTATE GOLDMAN SACHS GOLDMAN SACHS T. ROWE PRICE
SECURITIES GROWTH SMALL CAP DIVIDEND GROWTH
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 3,750 $ 2,779 $ 4,686 $ 1,977
======== ======== ======== ========
Foreign cash, at cost ...................................... $ 0 $ 0 $ 0 $ 0
======== ======== ======== ========
Investments in securities, at market value ................. $ 3,692 $ 2,890 $ 4,893 $ 2,007
Cash ....................................................... 405 0 50 51
Foreign cash ............................................... 0 0 0 0
Cash collateral for securities on loan ..................... 0 0 1,236 0
Receivables:
Securities sold ........................................... 0 0 0 0
Interest .................................................. 1 0 0 0
Dividends ................................................. 32 2 4 3
Dividend reclaims receivable .............................. 0 0 0 0
Foreign currency contracts ................................ 0 0 0 0
Other ..................................................... 0 0 0 0
-------- -------- -------- --------
Total assets ............................................. 4,130 2,892 6,183 2,061
-------- -------- -------- --------
LIABILITIES:
Securities purchased ....................................... 14 0 1,355 66
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 3 2 4 1
Due to custodian .......................................... 0 710 0 0
Dividends to shareholders ................................. 0 0 0 0
Deposits for securities on loan ........................... 0 0 0 0
Foreign currency contracts ................................ 0 0 0 0
Other fees ................................................ 1 0 0 0
-------- -------- -------- --------
Total liabilities ........................................ 18 712 1,359 67
-------- -------- -------- --------
Net assets .............................................. $ 4,112 $ 2,180 $ 4,824 $ 1,994
======== ======== ======== ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 50,000 50,000 50,000 50,000
======== ======== ======== ========
Capital stock ($ .01 par value)............................. $ 5 $ 2 $ 5 $ 2
Additional paid-in-capital ................................. 4,361 2,070 4,556 1,960
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... 81 2 5 3
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. (277) (5) 51 (1)
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... (58) 111 207 30
Futures contracts ......................................... 0 0 0 0
Foreign currency transactions ............................. 0 0 0 0
-------- -------- -------- --------
Net assets applicable to outstanding shares of capital ..... $ 4,112 $ 2,180 $ 4,824 $ 1,994
======== ======== ======== ========
Shares outstanding ......................................... 467 210 451 198
======== ======== ======== ========
Net asset value and offering price per share ............... $ 8.80 $ 10.36 $ 10.70 $ 10.06
======== ======== ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
114 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL WRL
T. ROWE PRICE SALOMON PILGRIM BAXTER DREYFUS
SMALL CAP ALL CAP MID CAP GROWTH MID CAP
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ......................... $ 5,212 $ 5,679 $ 903 $ 615
======== ======== ======== ========
Foreign cash, at cost ...................................... $ 0 $ 0 $ 0 $ 0
======== ======== ======== ========
Investments in securities, at market value ................. $ 5,619 $ 5,834 $ 977 $ 642
Cash ....................................................... 131 50 0 50
Foreign cash ............................................... 0 0 0 0
Cash collateral for securities on loan ..................... 0 0 0 0
Receivables:
Securities sold ........................................... 2 191 867 13
Interest .................................................. 0 7 0 0
Dividends ................................................. 0 4 0 1
Dividend reclaims receivable .............................. 0 0 0 0
Foreign currency contracts ................................ 0 0 0 0
Other ..................................................... 0 0 0 0
-------- -------- -------- --------
Total assets ............................................. 5,752 6,086 1,844 706
-------- -------- -------- --------
LIABILITIES:
Securities purchased ....................................... 43 331 179 0
Accounts payable and accrued liabilities:
Investment advisory fees .................................. 3 3 1 1
Due to custodian .......................................... 0 0 690 0
Dividends to shareholders ................................. 0 0 0 0
Deposits for securities on loan ........................... 0 0 0 0
Foreign currency contracts ................................ 0 0 0 0
Other fees ................................................ 1 17 0 0
-------- -------- -------- --------
Total liabilities ........................................ 47 351 870 1
-------- -------- -------- --------
Net assets .............................................. $ 5,705 $ 5,735 $ 974 $ 705
======== ======== ======== ========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ............................ 50,000 50,000 50,000 50,000
======== ======== ======== ========
Capital stock ($ .01 par value)............................. $ 5 $ 5 $ 1 $ 1
Additional paid-in-capital ................................. 5,286 5,517 819 672
Accumulated undistributed (distributions in
excess of) net investment income (loss) ................... 0 6 0 0
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and
foreign currency transactions ............................. 7 55 80 5
Net unrealized appreciation (depreciation) on:
Investment securities ..................................... 407 152 74 27
Futures contracts ......................................... 0 0 0 0
Foreign currency transactions ............................. 0 0 0 0
-------- -------- -------- --------
Net assets applicable to outstanding shares of capital ..... $ 5,705 $ 5,735 $ 974 $ 705
======== ======== ======== ========
Shares outstanding ......................................... 509 534 88 67
======== ======== ======== ========
Net asset value and offering price per share ............... $ 11.20 $ 10.75 $ 11.09 $ 10.52
======== ======== ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 115
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
WRL WRL WRL WRL LKCM
J.P. MORGAN AEGON JANUS JANUS STRATEGIC
MONEY MARKET BOND GROWTH GLOBAL TOTAL RETURN
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ........................................... $ 5,486 $ 4,991 $ 6,885 $ 1,144 $ 5,798
Dividends .......................................... 0 0 5,874 5,519 2,647
Foreign tax withheld ............................... 0 0 (220) (592) (17)
------- --------- ---------- --------- --------
Total investment income .......................... 5,486 4,991 12,539 6,071 8,428
------- --------- ---------- --------- --------
EXPENSES:
Investment advisory fees ........................... 440 368 12,526 4,584 2,356
Printing and shareholder reports ................... 11 27 220 179 71
Custody fees ....................................... 18 15 228 376 46
Administrative service fees ........................ 8 19 171 125 51
Legal fees ......................................... 1 2 14 10 4
Auditing and accounting fees ....................... 3 3 12 9 5
Directors fees ..................................... 0 0 4 2 1
Registration fees .................................. 0 0 1 0 0
Other fees ......................................... 0 0 0 30 0
------- --------- ---------- --------- --------
Total expenses ................................... 481 434 13,176 5,315 2,534
Less:
Advisory fee waiver and expense reimbursement ..... 0 0 0 0 0
Fees paid indirectly .............................. 0 0 0 0 0
------- --------- ---------- --------- --------
Net expenses ..................................... 481 434 13,176 5,315 2,534
------- --------- ---------- --------- --------
Net investment income (loss) ........................ 5,005 4,557 (637) 756 5,894
------- --------- ---------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ............................. 0 (25) 933,209 40,755 16,032
Futures contracts ................................. 0 0 0 1,754 0
Foreign currency transactions ..................... 0 0 91 3,551 0
------- --------- ---------- --------- --------
Total net realized gain (loss) ................... 0 (25) 933,300 46,060 16,032
------- --------- ---------- --------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities ............................. 0 (8,862) (340,192) 90,894 17,077
Futures contracts ................................. 0 0 0 0 0
Foreign currency transactions ..................... 0 0 1,124 13,182 0
------- --------- ---------- --------- --------
Total change in unrealized appreciation
(depreciation) ................................. 0 (8,862) (339,068) 104,076 17,077
------- --------- ---------- --------- --------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ....... 0 (8,887) 594,232 150,136 33,109
------- --------- ---------- --------- --------
Net increase (decrease) in net assets resulting
from operations ................................ $ 5,005 $ (4,330) $ 593,595 $ 150,892 $ 39,003
======= ========= ========== ========= ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
116 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL
VKAM ALGER WRL FEDERATED WRL
EMERGING AGGRESSIVE AEGON GROWTH & DEAN ASSET
GROWTH GROWTH BALANCED INCOME ALLOCATION
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................... $ 1,334 $ 394 $ 998 $ 148 $ 4,543
Dividends .............................................. 653 934 440 1,959 1,884
Foreign tax withheld ................................... (1) (11) (3) (2) (12)
---------- --------- -------- -------- -------
Total investment income .............................. 1,986 1,317 1,435 2,105 6,415
--------- --------- ------- ------- -------
EXPENSES:
Investment advisory fees ............................... 3,763 2,568 404 306 1,402
Printing and shareholder reports ....................... 133 104 17 23 42
Custody fees ........................................... 82 48 10 13 31
Administrative service fees ............................ 120 98 14 16 29
Legal fees ............................................. 9 8 1 1 2
Auditing and accounting fees ........................... 6 4 4 3 4
Directors fees ......................................... 2 2 0 0 1
Registration fees ...................................... 0 0 0 0 0
Other fees ............................................. 0 0 0 1 0
--------- --------- ------- ------- -------
Total expenses ....................................... 4,115 2,832 450 363 1,511
Less:
Advisory fee waiver and expense reimbursement .......... 0 0 0 0 0
Fees paid indirectly ................................... 0 0 0 0 0
--------- --------- ------- ------- -------
Net expenses ......................................... 4,115 2,832 450 363 1,511
--------- --------- ------- ------- -------
Net investment income (loss) ........................... (2,129) (1,515) 985 1,742 4,904
--------- --------- ------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................. 209,832 82,554 1,570 1,149 633
Futures contracts ..................................... 0 0 0 0 0
Foreign currency transactions ......................... 0 0 0 0 0
--------- --------- ------- ------- -------
Total net realized gain (loss) ....................... 209,832 82,554 1,570 1,149 633
--------- --------- ------- ------- -------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................. (26,884) 22,614 4,030 (474) (984)
Futures contracts ..................................... 0 0 0 0 0
Foreign currency transactions ......................... 0 0 0 0 0
--------- --------- ------- ------- -------
Total change in unrealized appreciation
(depreciation) ..................................... (26,884) 22,614 4,030 (474) (984)
--------- --------- ------- ------- -------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ........... 182,948 105,168 5,600 675 (351)
--------- --------- ------- ------- -------
Net increase (decrease) in net assets resulting
from operations .................................... $ 180,819 $ 103,653 $ 6,585 $ 2,417 $ 4,553
========= ========= ======= ======= =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 117
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
GE/SCOTTISH WRL
WRL WRL EQUITABLE WRL THIRD
C.A.S.E. NWQ INTERNATIONAL GE AVENUE
GROWTH VALUE EQUITY EQUITY U.S. EQUITY VALUE
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................... $ 33 $ 157 $ 52 $ 177 $ 43
Dividends .............................................. 197 1,155 390 745 313
Foreign tax withheld ................................... (1) 0 (49) (5) (3)
--------- -------- -------- --------- -------
Total investment income .............................. 229 1,312 393 917 353
-------- -------- -------- -------- ------
EXPENSES:
Investment advisory fees ............................... 313 610 166 521 71
Printing and shareholder reports ....................... 25 30 8 15 2
Custody fees ........................................... 27 16 131 57 16
Administrative service fees ............................ 18 21 5 14 2
Legal fees ............................................. 1 2 0 1 0
Auditing and accounting fees ........................... 2 2 3 3 3
Directors fees ......................................... 0 0 0 0 0
Registration fees ...................................... 0 0 0 0 0
Other fees ............................................. 0 3 3 0 1
-------- -------- -------- -------- ------
Total expenses ....................................... 386 684 316 611 95
Less:
Advisory fee waiver and expense reimbursement ......... 0 0 67 0 6
Fees paid indirectly .................................. 0 0 0 0 0
-------- -------- -------- -------- ------
Net expenses ......................................... 386 684 249 611 89
-------- -------- -------- -------- ------
Net investment income (loss) ........................... (157) 628 144 306 264
-------- -------- -------- -------- ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................. 5,886 4,523 2,112 5,864 (234)
Futures contracts ..................................... 0 0 (123) 29 0
Foreign currency transactions ......................... 0 0 26 (1) 0
-------- -------- -------- --------- ------
Total net realized gain (loss) ....................... 5,886 4,523 2,015 5,892 (234)
-------- -------- -------- -------- ------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................. 12,679 20,287 (1,272) 10,246 632
Futures contracts ..................................... 0 0 (27) 45 0
Foreign currency transactions ......................... 0 0 8 0 0
-------- -------- -------- -------- ------
Total change in unrealized appreciation
(depreciation) ..................................... 12,679 20,287 (1,291) 10,291 632
-------- -------- -------- -------- ------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ........... 18,565 24,810 724 16,183 398
-------- -------- -------- -------- ------
Net increase (decrease) in net assets resulting
from operations .................................... $ 18,408 $ 25,438 $ 868 $ 16,489 $ 662
======== ======== ======== ======== ======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
118 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
J.P. MORGAN WRL WRL WRL
REAL ESTATE GOLDMAN SACHS GOLDMAN SACHS T. ROWE PRICE
SECURITIES GROWTH(1) SMALL CAP(1) DIVIDEND GROWTH(1)
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................... $ 4 $ 2 $ 4 $ 1
Dividends .............................................. 81 3 5 4
Foreign tax withheld ................................... 0 0 0 0
---- ----- ----- ----
Total investment income .............................. 85 5 9 5
---- ----- ----- ----
EXPENSES:
Investment advisory fees ............................... 11 3 4 2
Printing and shareholder reports ....................... 0 0 0 0
Custody fees ........................................... 27 8 3 8
Administrative service fees ............................ 0 0 0 0
Legal fees ............................................. 0 0 0 0
Auditing and accounting fees ........................... 4 1 1 1
Directors fees ......................................... 0 0 0 0
Registration fees ...................................... 0 0 0 0
Other fees ............................................. 0 0 0 0
---- ----- ----- ----
Total expenses ....................................... 42 12 8 11
Less:
Advisory fee waiver and expense reimbursement ......... 28 9 4 9
Fees paid indirectly .................................. 0 0 0 0
---- ----- ----- ----
Net expenses ......................................... 14 3 4 2
---- ----- ----- ----
Net investment income (loss) ........................... 71 2 5 3
---- ----- ----- ----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................. (5) (5) 5 (1)
Futures contracts ..................................... 0 0 46 0
Foreign currency transactions ......................... 0 0 0 0
---- ----- ----- ----
Total net realized gain (loss) ....................... (5) (5) 51 (1)
----- ------ ----- -----
Change in unrealized appreciation (depreciation) on:
Investment securities ................................. 19 111 207 30
Futures contracts ..................................... 0 0 0 0
Foreign currency transactions ......................... 0 0 0 0
---- ----- ----- ----
Total change in unrealized appreciation
(depreciation) ..................................... 19 111 207 30
---- ----- ----- ----
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions .......... 14 106 258 29
---- ----- ----- ----
Net increase (decrease) in net assets resulting
from operations .................................... $ 85 $ 108 $ 263 $ 32
==== ===== ===== ====
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 119
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL WRL
T. ROWE PRICE SALOMON PILGRIM BAXTER DREYFUS
SMALL CAP(1) ALL CAP(1) MID CAP GROWTH(1) MID CAP(1)
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................... $ 3 $ 5 $ 2 $ 0
Dividends .............................................. 1 5 0 1
Foreign tax withheld ................................... 0 0 0 0
----- ----- ----- ----
Total investment income .............................. 4 10 2 1
----- ----- ----- ----
EXPENSES:
Investment advisory fees ............................... 3 4 2 1
Printing and shareholder reports ....................... 0 0 0 0
Custody fees ........................................... 6 3 5 3
Administrative service fees ............................ 0 0 0 0
Legal fees ............................................. 0 0 0 0
Auditing and accounting fees ........................... 1 1 1 1
Directors fees ......................................... 0 0 0 0
Registration fees ...................................... 0 0 0 0
Other fees ............................................. 0 0 0 0
----- ----- ----- ----
Total expenses ....................................... 10 8 8 5
Less:
Advisory fee waiver and expense reimbursement ......... 6 4 6 4
Fees paid indirectly .................................. 0 0 0 0
----- ----- ----- ----
Net expenses ......................................... 4 4 2 1
----- ----- ----- ----
Net investment income (loss) ........................... 0 6 0 0
----- ----- ----- ----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................. 7 55 80 5
Futures contracts ..................................... 0 0 0 0
Foreign currency transactions ......................... 0 0 0 0
----- ----- ----- ----
Total net realized gain (loss) ....................... 7 55 80 5
----- ----- ----- ----
Change in unrealized appreciation (depreciation) on:
Investment securities ................................. 407 152 74 27
Futures contracts ..................................... 0 0 0 0
Foreign currency transactions ......................... 0 0 0 0
----- ----- ----- ----
Total change in unrealized appreciation
(depreciation) ..................................... 407 152 74 27
----- ----- ----- ----
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ........... 414 207 154 32
----- ----- ----- ----
Net increase (decrease) in net assets resulting
from operations .................................... $ 414 $ 213 $ 154 $ 32
===== ===== ===== ====
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
120 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL
J.P. MORGAN AEGON
MONEY MARKET BOND
---------------------------- ----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................. $ 5,005 $ 8,307 $ 4,557 $ 8,175
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ............... 0 0 (25) 1,952
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................ 0 0 (8,862) 2,580
----------- ----------- --------- ---------
Net increase (decrease) in net assets
resulting from operations ................... 5,005 8,307 (4,330) 12,707
----------- ----------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ........................ (5,005) (8,307) (175) (8,188)
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 ......................... (5,005) (8,307) (175) (8,188)
----------- ----------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............ 443,757 415,785 24,810 81,280
Dividends and distributions reinvested ....... 5,005 8,307 175 8,188
Cost of shares redeemed ...................... (371,032) (374,069) (31,253) (52,897)
----------- ----------- --------- ---------
Increase (decrease) in net assets from
capital share transactions ................. 77,730 50,023 (6,268) 36,571
----------- ----------- --------- ---------
Net increase (decrease) in net assets ........ 77,730 50,023 (10,773) 41,090
NET ASSETS:
Beginning of period .......................... 169,731 119,708 170,744 129,654
----------- ----------- --------- ---------
End of period ................................ $ 247,461 $ 169,731 $ 159,971 $ 170,744
=========== =========== ========= =========
Undistributed (distributions in excess
of) net investment income .................. $ 0 $ 0 $ 4,557 $ 175
=========== =========== ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period 169,731 119,708 14,727 11,637
----------- ----------- --------- ---------
Shares issued ................................ 443,757 415,785 2,166 6,906
Shares issued - reinvestment of dividends
and distributions ........................... 5,005 8,307 15 706
Shares redeemed .............................. (371,032) (374,069) (2,727) (4,522)
----------- ----------- --------- ---------
Increase (decrease) in shares outstanding 77,730 50,023 (546) 3,090
----------- ----------- --------- ---------
Shares outstanding - end of period ........... 247,461 169,731 14,181 14,727
=========== =========== ========= =========
<CAPTION>
WRL
JANUS
GROWTH
-------------------------------
JUNE 30, DECEMBER 31,
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................. $ (637) $ 5,859
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ............... 933,300 109,620
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................ (339,068) 1,067,908
----------- -----------
Net increase (decrease) in net assets
resulting from operations ................... 593,595 1,183,387
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ........................ (446) (4,582)
In excess of net investment income ........... (552) 0
Net realized gains ........................... (113,521) (20,376)
In excess of net realized gains .............. 0 0
----------- -----------
Total distributions ......................... (114,519) (24,958)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............ 285,636 334,912
Dividends and distributions reinvested ....... 114,519 24,958
Cost of shares redeemed ...................... (885,916) (271,695)
----------- -----------
Increase (decrease) in net assets from
capital share transactions ................. (485,761) 88,175
----------- -----------
Net increase (decrease) in net assets ........ (6,685) 1,246,604
NET ASSETS:
Beginning of period .......................... 3,086,057 1,839,453
----------- -----------
End of period ................................ $ 3,079,372 $ 3,086,057
=========== ===========
Undistributed (distributions in excess
of) net investment income .................. $ (552) $ 1,083
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of period 51,486 49,925
----------- -----------
Shares issued ................................ 4,258 7,017
Shares issued - reinvestment of dividends
and distributions ........................... 1,744 540
Shares redeemed .............................. (12,819) (5,996)
----------- -----------
Increase (decrease) in shares outstanding (6,817) 1,561
----------- -----------
Shares outstanding - end of period ........... 44,669 51,486
=========== ===========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 121
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
JANUS
GLOBAL
-------------------------------
JUNE 30, DECEMBER 31,
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................. $ 756 $ 2,155
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ............... 46,060 40,987
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................ 104,076 193,520
----------- -----------
Net increase (decrease) in net assets
resulting from operations ................... 150,892 236,662
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ........................ 0 (5,524)
In excess of net investment income ........... 0 0
Net realized gains ........................... (16,850) (34,430)
In excess of net realized gains .............. 0 (2,669)
----------- -----------
Total distributions ......................... (16,850) (42,623)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............ 127,474 170,974
Dividends and distributions reinvested ....... 16,850 42,623
Cost of shares redeemed ...................... (91,448) (123,837)
----------- -----------
Increase (decrease) in net assets from
capital share transactions ................. 52,876 89,760
----------- -----------
Net increase (decrease) in net assets ........ 186,918 283,799
NET ASSETS:
Beginning of period .......................... 1,069,765 785,966
----------- -----------
End of period ................................ $ 1,256,683 $ 1,069,765
=========== ===========
Undistributed (distributions in excess
of) net investment income .................. $ (716) $ (1,472)
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of period 45,121 41,272
----------- -----------
Shares issued ................................ 5,025 7,631
Shares issued - reinvestment of dividends
and distributions ........................... 655 1,899
Shares redeemed .............................. (3,608) (5,681)
----------- -----------
Increase (decrease) in shares outstanding 2,072 3,849
----------- -----------
Shares outstanding - end of period ........... 47,193 45,121
=========== ===========
<CAPTION>
WRL
LKCM WRL
STRATEGIC VKAM
TOTAL RETURN EMERGING GROWTH
---------------------------- -----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------- -------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................. $ 5,894 $ 13,622 $ (2,129) $ (2,449)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ............... 16,032 25,081 209,832 48,782
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................ 17,077 12,649 (26,884) 178,298
--------- --------- ----------- ---------
Net increase (decrease) in net assets
resulting from operations ................... 39,003 51,352 180,819 224,631
--------- --------- ----------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ........................ (1,430) (13,507) 0 0
In excess of net investment income ........... 0 0 0 0
Net realized gains ........................... (17,685) (11,332) (21,765) (28,331)
In excess of net realized gains .............. 0 0 0 0
--------- --------- ----------- ---------
Total distributions ......................... (19,115) (24,839) (21,765) (28,331)
--------- --------- ----------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............ 32,148 61,940 134,404 124,046
Dividends and distributions reinvested ....... 19,115 24,839 21,765 28,331
Cost of shares redeemed ...................... (51,984) (47,557) (97,592) (87,240)
--------- --------- ----------- ---------
Increase (decrease) in net assets from
capital share transactions ................. (721) 39,222 58,577 65,137
--------- --------- ----------- ---------
Net increase (decrease) in net assets ........ 19,167 65,735 217,631 261,437
NET ASSETS:
Beginning of period .......................... 592,312 526,577 853,440 592,003
--------- --------- ----------- ---------
End of period ................................ $ 611,479 $ 592,312 $ 1,071,071 $ 853,440
========= ========= =========== =========
Undistributed (distributions in excess
of) net investment income .................. $ 6,097 $ 1,633 $ (2,129) $ 0
========= ========= =========== =========
SHARE ACTIVITY:
Shares outstanding - beginning of period 36,106 33,702 31,698 29,066
--------- --------- ----------- ---------
Shares issued ................................ 1,906 3,867 4,525 5,401
Shares issued - reinvestment of dividends
and distributions ........................... 1,152 1,537 729 1,183
Shares redeemed .............................. (3,089) (3,000) (3,307) (3,952)
--------- --------- ----------- ---------
Increase (decrease) in shares outstanding (31) 2,404 1,947 2,632
--------- --------- ----------- ---------
Shares outstanding - end of period ........... 36,075 36,106 33,645 31,698
========= ========= =========== =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
122 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
ALGER
AGGRESSIVE GROWTH
----------------------------
JUNE 30, DECEMBER 31,
1999 1998
------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ (1,515) $ (885)
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 82,554 44,175
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 22,614 131,450
--------- ---------
Net increase (decrease) in net assets
resulting from operations ..................... 103,653 174,740
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (7,520) 0
In excess of net investment income ............. (1,515) (1,181)
Net realized gains ............................. (14,961) (28,097)
In excess of net realized gains ................ 0 0
--------- ---------
Total distributions ........................... (23,996) (29,278)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 92,965 125,033
Dividends and distributions reinvested ......... 23,996 29,278
Cost of shares redeemed ........................ (46,399) (61,775)
--------- ---------
Increase (decrease) in net assets from
capital share transactions ................... 70,562 92,536
--------- ---------
Net increase (decrease) in net assets .......... 150,219 237,998
NET ASSETS:
Beginning of period ............................ 574,164 336,166
--------- ---------
End of period .................................. $ 724,383 $ 574,164
========= =========
Undistributed (distributions in excess
of) net investment income .................... $ (1,515) $ 9,035
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period 25,588 20,952
--------- ---------
Shares issued .................................. 3,800 6,605
Shares issued - reinvestment of dividends
and distributions ............................. 1,013 1,461
Shares redeemed ................................ (1,933) (3,430)
--------- ---------
Increase (decrease) in shares outstanding 2,880 4,636
--------- ---------
Shares outstanding - end of period ............. 28,468 25,588
========= =========
<CAPTION>
WRL WRL
AEGON FEDERATED
BALANCED GROWTH & INCOME
---------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 985 $ 2,451 $ 1,742 $ 3,330
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 1,570 (2,695) 1,149 1,377
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 4,030 6,041 (474) (2,082)
--------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations ..................... 6,585 5,797 2,417 2,625
--------- ---------- ---------- ----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (614) (2,097) (1,571) (3,680)
In excess of net investment income ............. 0 0 0 0
Net realized gains ............................. 0 0 (573) (645)
In excess of net realized gains ................ 0 (90) 0 0
--------- ---------- ---------- ----------
Total distributions ........................... (614) (2,187) (2,144) (4,325)
--------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 16,608 27,666 10,989 44,343
Dividends and distributions reinvested ......... 614 2,187 2,144 4,325
Cost of shares redeemed ........................ (5,628) (11,914) (15,482) (19,844)
--------- ---------- ---------- ----------
Increase (decrease) in net assets from
capital share transactions ................... 11,594 17,939 (2,349) 28,824
--------- ---------- ---------- ----------
Net increase (decrease) in net assets .......... 17,565 21,549 (2,076) 27,124
NET ASSETS:
Beginning of period ............................ 95,000 73,451 87,616 60,492
--------- ---------- ---------- ----------
End of period .................................. $ 112,565 $ 95,000 $ 85,540 $ 87,616
========= ========== ========== ==========
Undistributed (distributions in excess
of) net investment income .................... $ 687 $ 316 $ 1,799 $ 1,628
========= ========== ========== ==========
SHARE ACTIVITY:
Shares outstanding - beginning of period 7,574 6,116 7,135 4,817
--------- ---------- ---------- ----------
Shares issued .................................. 1,288 2,254 911 3,566
Shares issued - reinvestment of dividends
and distributions ............................. 47 175 173 354
Shares redeemed ................................ (439) (971) (1,295) (1,602)
--------- ---------- ---------- ----------
Increase (decrease) in shares outstanding 896 1,458 (211) 2,318
--------- ---------- ---------- ----------
Shares outstanding - end of period ............. 8,470 7,574 6,924 7,135
========= ========== ========== ==========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 123
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL
DEAN ASSET C.A.S.E.
ALLOCATION GROWTH
---------------------------- ---------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------- -------------- ------------ --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 4,904 $ 9,895 $ (157) $ 89
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 633 19,941 5,886 7,730
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. (984) (3,713) 12,679 (6,329)
--------- --------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations ..................... 4,553 26,123 18,408 1,490
--------- --------- ---------- ----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (1,446) (10,269) (3,797) (1,766)
In excess of net investment income ............. 0 0 (157) (4,411)
Net realized gains ............................. (1,562) (24,569) 0 (411)
In excess of net realized gains ................ 0 0 0 0
--------- --------- ---------- ----------
Total distributions ........................... (3,008) (34,838) (3,954) (6,588)
--------- --------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 12,416 65,710 25,139 27,821
Dividends and distributions reinvested ......... 3,008 34,838 3,954 6,588
Cost of shares redeemed ........................ (39,877) (28,840) (22,381) (20,506)
--------- --------- ---------- ----------
Increase (decrease) in net assets from
capital share transactions ................... (24,453) 71,708 6,712 13,903
--------- --------- ---------- ----------
Net increase (decrease) in net assets .......... (22,908) 62,993 21,166 8,805
NET ASSETS:
Beginning of period ............................ 365,738 302,745 69,401 60,596
--------- --------- ---------- ----------
End of period .................................. $ 342,830 $ 365,738 $ 90,567 $ 69,401
========= ========= ========== ==========
Undistributed (distributions in excess
of) net investment income .................... $ 4,794 $ 1,336 $ (157) $ 3,954
========= ========= ========== ==========
SHARE ACTIVITY:
Shares outstanding - beginning of period 27,393 22,239 5,342 4,325
--------- --------- ---------- ----------
Shares issued .................................. 922 4,661 1,673 2,031
Shares issued - reinvestment of dividends
and distributions ............................. 224 2,566 258 505
Shares redeemed ................................ (2,977) (2,073) (1,490) (1,519)
--------- --------- ---------- ----------
Increase (decrease) in shares outstanding (1,831) 5,154 441 1,017
--------- --------- ---------- ----------
Shares outstanding - end of period ............. 25,562 27,393 5,783 5,342
========= ========= ========== ==========
<CAPTION>
WRL
NWQ
VALUE EQUITY
---------------------------
JUNE 30, DECEMBER 31,
1999 1998
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 628 $ 1,599
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 4,523 7,509
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 20,287 (21,758)
--------- ---------
Net increase (decrease) in net assets
resulting from operations ..................... 25,438 (12,650)
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (607) (1,703)
In excess of net investment income ............. 0 (1,500)
Net realized gains ............................. 0 (7,955)
In excess of net realized gains ................ (4) (3,222)
---------- ---------
Total distributions ........................... (611) (14,380)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 38,531 60,182
Dividends and distributions reinvested ......... 611 14,380
Cost of shares redeemed ........................ (44,102) (63,810)
--------- ---------
Increase (decrease) in net assets from
capital share transactions ................... (4,960) 10,752
--------- ---------
Net increase (decrease) in net assets .......... 19,867 (16,278)
NET ASSETS:
Beginning of period ............................ 157,157 173,435
--------- ---------
End of period .................................. $ 177,024 $ 157,157
========= =========
Undistributed (distributions in excess
of) net investment income .................... $ 628 $ 607
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period 12,972 12,473
--------- ---------
Shares issued .................................. 2,822 4,316
Shares issued - reinvestment of dividends
and distributions ............................. 43 1,168
Shares redeemed ................................ (3,460) (4,985)
--------- ---------
Increase (decrease) in shares outstanding (595) 499
--------- ---------
Shares outstanding - end of period ............. 12,377 12,972
========= =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
124 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL
GE/SCOTTISH EQUITABLE
INTERNATIONAL EQUITY
---------------------------
JUNE 30, DECEMBER 31,
1999 1998
------------ --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 144 $ 81
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 2,015 (548)
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. (1,291) 2,913
--------- ---------
Net increase (decrease) in net assets
resulting from operations ...................... 868 2,446
--------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (45) (23)
In excess of net investment income ............. 0 0
Net realized gains ............................. 0 0
In excess of net realized gains ................ 0 0
--------- ---------
Total distributions ........................... (45) (23)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 101,889 26,504
Dividends and distributions reinvested ......... 45 23
Cost of shares redeemed ........................ (98,202) (16,596)
--------- ---------
Increase (decrease) in net assets from
capital share transactions ................... 3,732 9,931
--------- ---------
Net increase (decrease) in net assets .......... 4,555 12,354
NET ASSETS:
Beginning of period ............................ 32,149 19,795
--------- ---------
End of period .................................. $ 36,704 $ 32,149
========= =========
Undistributed (distributions in excess
of) net investment income .................... $ 141 $ 42
========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of period 2,664 1,850
--------- ---------
Shares issued .................................. 8,407 2,225
Shares issued - reinvestment of dividends
and distributions ............................. 4 2
Shares redeemed ................................ (8,061) (1,413)
--------- ---------
Increase (decrease) in shares outstanding 350 814
--------- ---------
Shares outstanding - end of period ............. 3,014 2,664
========= =========
<CAPTION>
WRL WRL
GE THIRD AVENUE
U.S. EQUITY VALUE
---------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998(1)
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 306 $ 472 $ 264 $ 86
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 5,892 4,584 (234) 292
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 10,291 11,132 632 (1,456)
--------- --------- -------- --------
Net increase (decrease) in net assets
resulting from operations ...................... 16,489 16,188 662 (1,078)
--------- --------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (1,284) (1,004) (327) (50)
In excess of net investment income ............. 0 (2,280) 0 0
Net realized gains ............................. (1,146) (758) 0 0
In excess of net realized gains ................ 0 0 0 0
--------- --------- -------- --------
Total distributions ........................... (2,430) (4,042) (327) (50)
--------- --------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 55,814 82,493 5,206 24,952
Dividends and distributions reinvested ......... 2,430 4,042 327 50
Cost of shares redeemed ........................ (24,210) (30,829) (4,385) (5,668)
--------- --------- -------- --------
Increase (decrease) in net assets from
capital share transactions ................... 34,034 55,706 1,148 19,334
--------- --------- -------- --------
Net increase (decrease) in net assets .......... 48,093 67,852 1,483 18,206
NET ASSETS:
Beginning of period ............................ 110,803 42,951 18,206 0
--------- --------- -------- --------
End of period .................................. $ 158,896 $ 110,803 $ 19,689 $ 18,206
========= ========= ======== ========
Undistributed (distributions in excess
of) net investment income .................... $ 297 $ 1,275 $ 265 $ 328
========= ========= ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of period 7,684 3,511 1,960 0
--------- --------- -------- --------
Shares issued .................................. 3,654 6,159 565 2,566
Shares issued - reinvestment of dividends
and distributions ............................. 155 286 35 6
Shares redeemed ................................ (1,621) (2,272) (487) (612)
--------- --------- -------- --------
Increase (decrease) in shares outstanding 2,188 4,173 113 1,960
--------- --------- -------- --------
Shares outstanding - end of period ............. 9,872 7,684 2,073 1,960
========= ========= ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 125
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL WRL
J.P. MORGAN GOLDMAN SACHS GOLDMAN SACHS T. ROWE PRICE
REAL ESTATE SECURITIES GROWTH SMALL CAP DIVIDEND GROWTH
-------------------------- --------------- --------------- ----------------
JUNE 30, DECEMBER 31, JUNE 30, JUNE 30, JUNE 30,
1999 1998(1) 1999(1) 1999(1) 1999(1)
----------- -------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 71 $ 72 $ 2 $ 5 $ 3
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. (5) (272) (5) 51 (1)
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 19 (77) 111 207 30
-------- -------- ------- ------- -------
Net increase (decrease) in net assets
resulting from operations ..................... 85 (277) 108 263 32
-------- -------- ------- ------- -------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... (62) 0 0 0 0
In excess of net investment income ............. 0 0 0 0 0
Net realized gains ............................. 0 0 0 0 0
In excess of net realized gains ................ 0 0 0 0 0
-------- -------- ------- ------- -------
Total distributions ........................... (62) 0 0 0 0
-------- -------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 5,359 4,110 3,060 5,006 1,984
Dividends and distributions reinvested ......... 62 0 0 0 0
Cost of shares redeemed ........................ (3,746) (1,419) (988) (445) (22)
-------- -------- ------- ------- -------
Increase (decrease) in net assets from
capital share transactions .................. 1,675 2,691 2,072 4,561 1,962
-------- -------- ------- ------- -------
Net increase (decrease) in net assets .......... 1,698 2,414 2,180 4,824 1,994
NET ASSETS:
Beginning of period ............................ 2,414 0 0 0 0
-------- -------- ------- ------- -------
End of period .................................. $ 4,112 $ 2,414 $ 2,180 $ 4,824 $ 1,994
======== ======== ======= ======= =======
Undistributed (distributions in excess
of) net investment income ................... $ 81 $ 72 $ 2 $ 5 $ 3
======== ======== ======= ======= =======
SHARE ACTIVITY:
Shares outstanding - beginning of period 284 0 0 0 0
-------- -------- ------- ------- -------
Shares issued .................................. 608 448 309 494 200
Shares issued - reinvestment of dividends
and distributions ............................. 7 0 0 0 0
Shares redeemed ................................ (432) (164) (99) (43) (2)
-------- -------- ------- ------- --------
Increase (decrease) in shares outstanding 183 284 210 451 198
-------- -------- ------- ------- -------
Shares outstanding - end of period ............. 467 284 210 451 198
======== ======== ======= ======= =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
126 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL WRL
T. ROWE PRICE SALOMON PILGRIM BAXTER DREYFUS
SMALL CAP ALL CAP MID CAP GROWTH MID CAP
--------------- ----------- ---------------- ---------
JUNE 30, JUNE 30 JUNE 30, JUNE 30,
1999(1) 1999(1) 1999(1) 1999(1)
--------------- ----------- ---------------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................... $ 0 $ 6 $ 0 $ 0
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................. 7 55 80 5
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions .................................. 407 152 74 27
------- ------- -------- ------
Net increase (decrease) in net assets
resulting from operations ..................... 414 213 154 32
------- ------- -------- ------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income .......................... 0 0 0 0
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 ........................... 0 0 0 0
------- ------- -------- ------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 5,304 5,534 1,859 775
Dividends and distributions reinvested ......... 0 0 0 0
Cost of shares redeemed ........................ (13) (12) (1,039) (102)
------- ------- -------- ------
Increase (decrease) in net assets from
capital share transactions ................... 5,291 5,522 820 673
------- ------- -------- ------
Net increase (decrease) in net assets .......... 5,705 5,735 974 705
NET ASSETS:
Beginning of period ............................ 0 0 0 0
------- ------- -------- ------
End of period .................................. $ 5,705 $ 5,735 $ 974 $ 705
======= ======= ======== ======
Undistributed (distributions in excess
of) net investment income .................... $ 0 $ 6 $ 0 $ 0
======= ======= ======== ======
SHARE ACTIVITY:
Shares outstanding - beginning of period 0 0 0 0
------- ------- -------- ------
Shares issued .................................. 510 535 186 77
Shares issued - reinvestment of dividends
and distributions ............................. 0 0 0 0
Shares redeemed ................................ (1) (1) (98) (10)
-------- -------- -------- ------
Increase (decrease) in shares outstanding 509 534 88 67
------- ------- -------- ------
Shares outstanding - end of period ............. 509 534 88 67
======= ======= ======== ======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 127
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL J.P. MORGAN MONEY MARKET
===============================
JUNE 30, DECEMBER 31,
--------------- ---------------
1999 1998
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) ..................................... 0.02 0.05
Net realized and unrealized gain (loss) on investments ........... 0.00 0.00
--------- ---------
Net income (loss) from operations ............................... 0.02 0.05
--------- ---------
Distributions:
Dividends from net investment income ............................. (0.02) (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 ............................................. (0.02) (0.05)
--------- ---------
Net asset value, end of period ..................................... $ 1.00 $ 1.00
========= =========
Total return ....................................................... 2.23% 5.26%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $247,461 $ 169,731
Ratio of expenses to average net assets .......................... 0.45% 0.46%
Ratio of net investment income (loss) to average net assets ...... 4.66% 5.24%
Portfolio turnover rate .......................................... n/a n/a
<CAPTION>
WRL J.P. MORGAN MONEY MARKET
===============================================
DECEMBER 31,
-----------------------------------------------
1997 1996 1995
--------------- --------------- --------------
<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 0.05 0.05
Net realized and unrealized gain (loss) on investments ........... 0.00 0.00 0.00
--------- --------- --------
Net income (loss) from operations ............................... 0.05 0.05 0.05
--------- --------- --------
Distributions:
Dividends from net investment income ............................. (0.05) (0.05) (0.05)
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) (0.05) (0.05)
--------- --------- --------
Net asset value, end of period ..................................... $ 1.00 $ 1.00 $ 1.00
========= ========= ========
Total return ....................................................... 5.24% 5.03% 5.40%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $119,708 $ 122,114 $ 80,544
Ratio of expenses to average net assets .......................... 0.48% 0.52% 0.56%
Ratio of net investment income (loss) to average net assets ...... 5.32% 5.03% 5.30%
Portfolio turnover rate .......................................... n/a n/a n/a
<CAPTION>
WRL J.P. MORGAN
MONEY MARKET
================
DECEMBER 31,
----------------
1994
----------------
<S> <C>
Net asset value, beginning of period ............................... $ 1.00
Income from operations:
Net investment income (loss) ..................................... 0.04
Net realized and unrealized gain (loss) on investments ........... 0.00
----------
Net income (loss) from operations ............................... 0.04
----------
Distributions:
Dividends from net investment income ............................. (0.04)
Dividends in excess of net investment income ..................... 0.00
Distributions from net realized gains on investments ............. 0.00
Distributions in excess of net realized gains on investments ..... 0.00
----------
Total distributions ............................................. (0.04)
----------
Net asset value, end of period ..................................... $ 1.00
==========
Total return ....................................................... 3.44 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 93,081
Ratio of expenses to average net assets .......................... 0.60 %
Ratio of net investment income (loss) to average net assets ...... 3.59 %
Portfolio turnover rate .......................................... n/a
</TABLE>
<TABLE>
<CAPTION>
WRL AEGON BOND
=============================
JUNE 30, DECEMBER 31,
-------------- --------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 11.59 $ 11.14
Income from operations: ...........................................
Net investment income (loss) ..................................... 0.32 0.64
Net realized and unrealized gain (loss) on investments ........... (0.62) 0.40
-------- --------
Net income (loss) from operations ............................... (0.30) 1.04
-------- --------
Distributions:
Dividends from net investment income ............................. (0.01) (0.59)
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 ............................................. (0.01) (0.59)
-------- --------
Net asset value, end of period ..................................... $ 11.28 $ 11.59
======== ========
Total return ....................................................... (2.60)% 9.32 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $159,971 $ 170,744
Ratio of expenses to average net assets .......................... 0.53 % 0.54 %
Ratio of net investment income (loss) to average net assets ...... 5.51 % 5.54 %
Portfolio turnover rate .......................................... 16.20 % 51.60 %
<CAPTION>
WRL AEGON BOND
=======================================================
DECEMBER 31,
-------------------------------------------------------
1997 1996 1995 1994
-------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................... $ 10.71 $ 11.35 $ 9.80 $ 11.24
Income from operations: ...........................................
Net investment income (loss) ..................................... 0.65 0.64 0.69 0.63
Net realized and unrealized gain (loss) on investments ........... 0.32 (0.64) 1.55 (1.44)
-------- -------- -------- --------
Net income (loss) from operations ............................... 0.97 0.00 2.24 (0.81)
-------- -------- -------- --------
Distributions:
Dividends from net investment income ............................. (0.54) (0.64) (0.69) (0.63)
Dividends in excess of net investment income ..................... 0.00 0.00 0.00 0.00
Distributions from net realized gains on investments ............. 0.00 0.00 0.00 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Total distributions ............................................. (0.54) (0.64) (0.69) (0.63)
-------- -------- -------- --------
Net asset value, end of period ..................................... $ 11.14 $ 10.71 $ 11.35 $ 9.80
======== ======== ======== ========
Total return ....................................................... 9.16 % 0.14 % 22.99 % (6.94)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $129,654 $ 95,759 $ 96,972 $ 71,064
Ratio of expenses to average net assets .......................... 0.64 % 0.64 % 0.61 % 0.59 %
Ratio of net investment income (loss) to average net assets ...... 5.90 % 5.96 % 6.45 % 5.94 %
Portfolio turnover rate .......................................... 213.03 % 187.72 % 120.54 % 131.73 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
128 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL JANUS GROWTH
=================================
JUNE 30, DECEMBER 31,
---------------- ----------------
1999 1998
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 59.94 $ 36.84
Income from operations:
Net investment income (loss) ......................................... (0.01) 0.12
Net realized and unrealized gain (loss) on investments ............... 11.69 23.49
---------- ----------
Net income (loss) from operations .................................... 11.68 23.61
---------- ----------
Distributions:
Dividends from net investment income ................................. (0.01) (0.09)
Dividends in excess of net investment income ......................... (0.01) 0.00
Distributions from net realized gains on investments ................. (2.66) (0.42)
Distributions in excess of net realized gains on investments ......... 0.00 0.00
---------- ----------
Total distributions ................................................. (2.68) (0.51)
---------- ----------
Net asset value, end of period ......................................... $ 68.94 $ 59.94
========== ==========
Total return ........................................................... 19.71 % 64.47 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $3,079,372 $ 3,086,057
Ratio of expenses to average net assets .............................. 0.80 % 0.83 %
Ratio of net investment income (loss) to average net assets .......... (0.04)% 0.25 %
Portfolio turnover rate .............................................. 43.77 % 35.29 %
<CAPTION>
WRL JANUS GROWTH
===================================================
DECEMBER 31,
---------------------------------------------------
1997 1996 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................... $ 35.00 $ 31.66 $ 23.81
Income from operations:
Net investment income (loss) ......................................... 0.31 0.34 0.26
Net realized and unrealized gain (loss) on investments ............... 5.88 5.35 10.97
---------- ---------- ----------
Net income (loss) from operations .................................... 6.19 5.69 11.23
---------- ---------- ----------
Distributions:
Dividends from net investment income ................................. (0.26) (0.35) (0.24)
Dividends in excess of net investment income ......................... 0.00 (0.01) 0.00
Distributions from net realized gains on investments ................. (4.09) (1.99) (3.14)
Distributions in excess of net realized gains on investments ......... 0.00 0.00 0.00
---------- ---------- ----------
Total distributions ................................................. (4.35) (2.35) (3.38)
---------- ---------- ----------
Net asset value, end of period ......................................... $ 36.84 $ 35.00 $ 31.66
========== ========== ==========
Total return ........................................................... 17.54% 17.96% 47.12%
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $1,839,453 $ 1,527,409 $ 1,195,174
Ratio of expenses to average net assets .............................. 0.87% 0.88% 0.86%
Ratio of net investment income (loss) to average net assets .......... 0.80% 0.98% 0.90%
Portfolio turnover rate .............................................. 85.88% 45.21% 130.48%
<CAPTION>
WRL JANUS
GROWTH
=============
DECEMBER 31,
-------------
1994
-------------
<S> <C>
Net asset value, beginning of period ................................... $ 26.25
Income from operations:
Net investment income (loss) ......................................... 0.22
Net realized and unrealized gain (loss) on investments ............... (2.41)
--------
Net income (loss) from operations .................................... (2.19)
--------
Distributions:
Dividends from net investment income ................................. (0.22)
Dividends in excess of net investment income ......................... 0.00
Distributions from net realized gains on investments ................. 0.00
Distributions in excess of net realized gains on investments ......... (0.03)
--------
Total distributions ................................................. (0.25)
--------
Net asset value, end of period ......................................... $ 23.81
========
Total return ........................................................... (8.31)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $814,383
Ratio of expenses to average net assets .............................. 0.84 %
Ratio of net investment income (loss) to average net assets .......... 0.88 %
Portfolio turnover rate .............................................. 107.33 %
</TABLE>
<TABLE>
<CAPTION>
WRL JANUS GLOBAL
===================================
JUNE 30, DECEMBER 31,
----------------- -----------------
1999 1998
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 23.71 $ 19.04
Income from operations:
Net investment income (loss) ......................................... 0.02 0.05
Net realized and unrealized gain (loss) on investments ............... 3.26 5.61
----------- -----------
Net income (loss) from operations .................................... 3.28 5.66
----------- -----------
Distributions:
Dividends from net investment income ................................. 0.00 (0.13)
Dividends in excess of net investment income ......................... 0.00 0.00
Distributions from net realized gains on investments ................. (0.36) (0.80)
Distributions in excess of net realized gains on investments ......... 0.00 (0.06)
----------- -----------
Total distributions ................................................. (0.36) (0.99)
----------- -----------
Net asset value, end of period ......................................... $ 26.63 $ 23.71
=========== ===========
Total return ........................................................... 13.91% 30.01%
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $ 1,256,683 $ 1,069,765
Ratio of expenses to average net assets .............................. 0.92% 0.95%
Ratio of net investment income (loss) to average net assets .......... 0.13% 0.23%
Portfolio turnover rate .............................................. 29.62% 87.36%
<CAPTION>
WRL JANUS GLOBAL
===================================================
DECEMBER 31,
---------------------------------------------------
1997 1996 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................... $ 18.12 $ 15.52 $ 13.12
Income from operations:
Net investment income (loss) ......................................... 0.08 0.08 0.10
Net realized and unrealized gain (loss) on investments ............... 3.32 4.20 2.91
---------- ---------- ----------
Net income (loss) from operations .................................... 3.40 4.28 3.01
---------- ---------- ----------
Distributions:
Dividends from net investment income ................................. (0.13) (0.04) 0.00
Dividends in excess of net investment income ......................... (1.01) (0.17) 0.00
Distributions from net realized gains on investments ................. (1.34) (1.47) (0.61)
Distributions in excess of net realized gains on investments ......... 0.00 0.00 0.00
---------- ---------- ----------
Total distributions ................................................. (2.48) (1.68) (0.61)
---------- ---------- ----------
Net asset value, end of period ......................................... $ 19.04 $ 18.12 $ 15.52
========== ========== ==========
Total return ........................................................... 18.75 % 27.74 % 23.06 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $ 785,966 $ 534,820 $ 289,506
Ratio of expenses to average net assets .............................. 1.00 % 0.99 % 0.99 %
Ratio of net investment income (loss) to average net assets .......... 0.41 % 0.46 % 0.75 %
Portfolio turnover rate .............................................. 97.54 % 88.31 % 130.60 %
<CAPTION>
WRL JANUS GLOBAL
================
DECEMBER 31,
----------------
1994
----------------
<S> <C>
Net asset value, beginning of period ................................... $ 13.62
Income from operations:
Net investment income (loss) ......................................... 0.10
Net realized and unrealized gain (loss) on investments ............... 0.10
----------
Net income (loss) from operations .................................... 0.20
----------
Distributions:
Dividends from net investment income ................................. (0.10)
Dividends in excess of net investment income ......................... (0.01)
Distributions from net realized gains on investments ................. (0.56)
Distributions in excess of net realized gains on investments ......... (0.03)
----------
Total distributions ................................................. (0.70)
----------
Net asset value, end of period ......................................... $ 13.12
==========
Total return ........................................................... 0.25 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ........................... $ 261,778
Ratio of expenses to average net assets .............................. 1.01 %
Ratio of net investment income (loss) to average net assets .......... 0.73 %
Portfolio turnover rate .............................................. 192.06 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 129
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL LKCM STRATEGIC TOTAL RETURN
===============================
JUNE 30, DECEMBER 31,
--------------- ---------------
1999 1998
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 16.40 $ 15.62
Income from operations:
Net investment income (loss) ..................................... 0.17 0.39
Net realized and unrealized gain (loss) on investments ........... 0.93 1.09
--------- ---------
Net income (loss) from operations ................................ 1.10 1.48
--------- ---------
Distributions:
Dividends from net investment income ............................. (0.04) (0.38)
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. (0.51) (0.32)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
--------- ---------
Total distributions ............................................. (0.55) (0.70)
--------- ---------
Net asset value, end of period ..................................... $ 16.95 $ 16.40
========= =========
Total return ....................................................... 6.74 % 9.64 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 611,479 $ 592,312
Ratio of expenses to average net assets .......................... 0.85 % 0.86 %
Ratio of net investment income (loss) to average net assets ...... 1.98 % 2.43 %
Portfolio turnover rate .......................................... 24.48 % 49.20 %
<CAPTION>
WRL LKCM STRATEGIC TOTAL RETURN
================================================
DECEMBER 31,
------------------------------------------------
1997 1996 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................... $ 13.97 $ 12.86 $ 10.90
Income from operations:
Net investment income (loss) ..................................... 0.37 0.37 0.37
Net realized and unrealized gain (loss) on investments ........... 2.68 1.56 2.33
--------- --------- ---------
Net income (loss) from operations ................................ 3.05 1.93 2.70
--------- --------- ---------
Distributions:
Dividends from net investment income ............................. (0.35) (0.32) (0.37)
Dividends in excess of net investment income ..................... (0.03) 0.00 0.00
Distributions from net realized gains on investments ............. (1.02) (0.50) (0.37)
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00
--------- --------- ---------
Total distributions ............................................. (1.40) (0.82) (0.74)
--------- --------- ---------
Net asset value, end of period ..................................... $ 15.62 $ 13.97 $ 12.86
========= ========= =========
Total return ....................................................... 21.85 % 15.00 % 24.66 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 526,577 $ 390,141 $ 256,806
Ratio of expenses to average net assets .......................... 0.88 % 0.91 % 0.87 %
Ratio of net investment income (loss) to average net assets ...... 2.43 % 2.72 % 3.07 %
Portfolio turnover rate .......................................... 48.20 % 49.32 % 52.59 %
<CAPTION>
WRL LKCM
STRATEGIC TOTAL
RETURN
===============
DECEMBER 31,
---------------
1994
---------------
<S> <C>
Net asset value, beginning of period ............................... $ 11.23
Income from operations:
Net investment income (loss) ..................................... 0.31
Net realized and unrealized gain (loss) on investments ........... (0.33)
----------
Net income (loss) from operations ................................ (0.02)
----------
Distributions:
Dividends from net investment income ............................. (0.31)
Dividends in excess of net investment income ..................... 0.00
Distributions from net realized gains on investments ............. 0.00
Distributions in excess of net realized gains on investments ..... 0.00
----------
Total distributions ............................................. (0.31)
----------
Net asset value, end of period ..................................... $ 10.90
==========
Total return ....................................................... (0.53)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 183,867
Ratio of expenses to average net assets .......................... 0.89 %
Ratio of net investment income (loss) to average net assets ...... 2.78 %
Portfolio turnover rate .......................................... 53.50 %
</TABLE>
<TABLE>
<CAPTION>
WRL VKAM EMERGING GROWTH
===============================
JUNE 30, DECEMBER 31,
---------------- --------------
1999 1998
---------------- --------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 26.92 $ 20.37
Income from operations:
Net investment income (loss) ..................................... (0.07) (0.08)
Net realized and unrealized gain (loss) on investments ........... 5.66 7.56
---------- --------
Net income (loss) from operations ............................... 5.59 7.48
---------- --------
Distributions:
Dividends from net investment income ............................. 0.00 0.00
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. (0.67) (0.93)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
---------- --------
Total distributions ............................................. (0.67) (0.93)
---------- --------
Net asset value, end of period ..................................... $ 31.84 $ 26.92
========== ========
Total return ....................................................... 20.92 % 37.33 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $1,071,071 $ 853,440
Ratio of expenses to average net assets .......................... 0.86 % 0.89 %
Ratio of net investment income (loss) to average net assets ...... (0.45)% (0.36)%
Portfolio turnover rate .......................................... 72.60 % 99.50 %
<CAPTION>
WRL VKAM EMERGING GROWTH
==========================================================
DECEMBER 31,
----------------------------------------------------------
1997 1996 1995 1994
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................... $ 18.46 $ 16.25 $ 11.55 $ 12.47
Income from operations:
Net investment income (loss) ..................................... (0.05) (0.04) 0.01 0.01
Net realized and unrealized gain (loss) on investments ........... 4.03 3.10 5.42 (0.92)
-------- -------- -------- --------
Net income (loss) from operations ............................... 3.98 3.06 5.43 (0.91)
-------- -------- -------- --------
Distributions:
Dividends from net investment income ............................. 0.00 0.00 0.00 (0.01)
Dividends in excess of net investment income ..................... 0.00 0.00 0.00 0.00
Distributions from net realized gains on investments ............. (2.07) (0.85) (0.73) 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Total distributions ............................................. (2.07) (0.85) (0.73) (0.01)
-------- -------- -------- --------
Net asset value, end of period ..................................... $ 20.37 $ 18.46 $ 16.25 $ 11.55
======== ======== ======== ========
Total return ....................................................... 21.45 % 18.88 % 46.79 % (7.36)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $592,003 $ 431,454 $ 288,519 $ 182,650
Ratio of expenses to average net assets .......................... 0.93 % 0.94 % 0.91 % 0.92 %
Ratio of net investment income (loss) to average net assets ...... (0.27)% (0.24)% 0.03 % 0.06 %
Portfolio turnover rate .......................................... 99.78 % 80.02 % 124.13 % 72.62 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
130 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL ALGER AGGRESSIVE GROWTH
=============================
JUNE 30, DECEMBER 31,
-------------- --------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 22.44 $ 16.04
Income from operations:
Net investment income (loss) ..................................... (0.06) (0.04)
Net realized and unrealized gain (loss) on investments ........... 3.95 7.68
-------- --------
Net income (loss) from operations ................................ 3.89 7.64
-------- --------
Distributions:
Dividends from net investment income ............................. (0.27) 0.00
Dividends in excess of net investment income ..................... (0.06) (0.05)
Distributions from net realized gains on investments ............. (0.55) (1.19)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
-------- --------
Total distributions ............................................. (0.88) (1.24)
-------- --------
Net asset value, end of period ..................................... $ 25.45 $ 22.44
======== ========
Total return ....................................................... 17.63 % 48.69 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $724,383 $ 574,164
Ratio of expenses to average net assets .......................... 0.87 % 0.91 %
Ratio of net investment income (loss) to average net assets ...... (0.47)% (0.21)%
Portfolio turnover rate .......................................... 60.17 % 117.44 %
<CAPTION>
WRL ALGER AGGRESSIVE GROWTH
=========================================================
DECEMBER 31,
---------------------------------------------------------
1997 1996 1995 1994(1)
-------------- -------------- -------------- ------------
<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)
-------- -------- -------- -------
Net 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 ....................................................... 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 .......................... 0.96 % 0.98 % 1.07 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... (0.06)% (0.10)% (0.48)% (0.20)%
Portfolio turnover rate .......................................... 136.18 % 101.28 % 108.04 % 89.73 %
</TABLE>
<TABLE>
<CAPTION>
WRL AEGON BALANCED
================================================
JUNE 30, DECEMBER 31,
-------------- ---------------------------------
1999 1998 1997
-------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................... $ 12.54 $ 12.01 $ 11.39
Income from operations:
Net investment income (loss) ..................................... 0.12 0.35 0.38
Net realized and unrealized gain (loss) on investments ........... 0.70 0.47 1.56
-------- ---------- ----------
Net income (loss) from operations ................................ 0.82 0.82 1.94
-------- ---------- ----------
Distributions:
Dividends from net investment income ............................. (0.07) (0.28) (0.36)
Dividends in excess of net investment income ..................... 0.00 0.00 (0.30)
Distributions from net realized gains on investments ............. 0.00 0.00 (0.66)
Distributions in excess of net realized gains on investments ..... 0.00 (0.01) 0.00
-------- ---------- ----------
Total distributions ............................................. (0.07) (0.29) (1.32)
-------- ---------- ----------
Net asset value, end of period ..................................... $ 13.29 $ 12.54 $ 12.01
======== ========== ==========
Total return ....................................................... 6.56 % 6.93 % 17.10 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $112,565 $ 95,000 $ 73,451
Ratio of expenses to average net assets .......................... 0.88 % 0.91 % 0.94 %
Ratio of net investment income (loss) to average net assets ...... 1.93 % 2.89 % 3.13 %
Portfolio turnover rate .......................................... 23.30 % 83.94 % 77.06 %
<CAPTION>
WRL AEGON BALANCED
=================================================
DECEMBER 31,
-------------------------------------------------
1996 1995 1994(1)
---------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................... $ 10.63 $ 9.24 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.34 0.44 0.34
Net realized and unrealized gain (loss) on investments ........... 0.80 1.38 (0.76)
---------- ---------- ----------
Net income (loss) from operations ................................ 1.14 1.82 (0.42)
---------- ---------- ----------
Distributions:
Dividends from net investment income ............................. (0.28) (0.43) (0.34)
Dividends in excess of net investment income ..................... 0.00 0.00 0.00
Distributions from net realized gains on investments ............. (0.10) 0.00 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00
---------- ---------- ----------
Total distributions ............................................. (0.38) (0.43) (0.34)
---------- ---------- ----------
Net asset value, end of period ..................................... $ 11.39 $ 10.63 $ 9.24
========== ========== ==========
Total return ....................................................... 10.72 % 19.80 % (5.73)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 49,331 $ 31,114 $ 19,422
Ratio of expenses to average net assets .......................... 0.97 % 0.97 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 3.14 % 4.38 % 4.27 %
Portfolio turnover rate .......................................... 76.90 % 98.55 % 57.73 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 131
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL FEDERATED GROWTH &
INCOME
===========================
JUNE 30, DECEMBER 31,
------------- -------------
1999 1998
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 12.28 $ 12.56
Income from operations:
Net investment income (loss) ..................................... 0.25 0.53
Net realized and unrealized gain (loss) on investments ........... 0.13 (0.16)
------- -------
Net income (loss) from operations ................................ 0.38 0.37
------- -------
Distributions:
Dividends from net investment income ............................. (0.23) (0.55)
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. (0.08) (0.10)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
------- -------
Total distributions ............................................. (0.31) (0.65)
------- -------
Net asset value, end of period ..................................... $ 12.35 $ 12.28
======= =======
Total return ....................................................... 3.19 % 3.05 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 85,540 $ 87,616
Ratio of expenses to average net assets .......................... 0.88 % 0.90 %
Ratio of net investment income (loss) to average net assets ...... 4.22 % 4.35 %
Portfolio turnover rate .......................................... 66.99 % 97.17 %
<CAPTION>
WRL FEDERATED GROWTH & INCOME
======================================================
DECEMBER 31,
------------------------------------------------------
1997 1996 1995 1994(1)
------------- ------------- ------------- ------------
<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)
-------- ------- ------- -------
Net 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 ....................................................... 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 .......................... 0.96 % 1.00 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 3.84 % 3.73 % 4.56 % 5.36 %
Portfolio turnover rate .......................................... 155.77 % 68.53 % 78.34 % 36.13 %
</TABLE>
<TABLE>
<CAPTION>
WRL DEAN ASSET ALLOCATION
=============================
JUNE 30, DECEMBER 31,
-------------- --------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 13.35 $ 13.61
Income from operations:
Net investment income (loss) ..................................... 0.19 0.41
Net realized and unrealized gain (loss) on investments ........... (0.01) 0.71
-------- --------
Net income (loss) from operations ................................ 0.18 1.12
-------- --------
Distributions:
Dividends from net investment income ............................. (0.06) (0.39)
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. (0.06) (0.99)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
-------- --------
Total distributions ............................................. (0.12) (1.38)
-------- --------
Net asset value, end of period ..................................... $ 13.41 $ 13.35
======== ========
Total return ....................................................... 1.34 % 8.33 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $342,830 $ 365,738
Ratio of expenses to average net assets .......................... 0.86 % 0.86 %
Ratio of net investment income (loss) to average net assets ...... 2.78 % 2.93 %
Portfolio turnover rate .......................................... 33.55 % 76.62 %
<CAPTION>
WRL DEAN ASSET ALLOCATION
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995(1)
-------------- -------------- --------------
<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
-------- -------- --------
Net 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 ....................................................... 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 .......................... 0.87 % 0.90 % 0.93 %
Ratio of net investment income (loss) to average net assets ...... 2.65 % 2.78 % 3.76 %
Portfolio turnover rate .......................................... 63.76 % 98.97 % 38.68 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
132 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL C.A.S.E. GROWTH
===========================
JUNE 30, DECEMBER 31,
------------- -------------
1999 1998
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 12.99 $ 14.01
Income from operations:
Net investment income (loss) ..................................... (0.03) 0.02
Net realized and unrealized gain (loss) on investments ........... 3.44 0.31
------- --------
Net income (loss) from operations ................................ 3.41 0.33
------- --------
Distributions:
Dividends from net investment income ............................. (0.71) (0.36)
Dividends in excess of net investment income ..................... (0.03) (0.90)
Distributions from net realized gains on investments ............. 0.00 (0.09)
Distributions in excess of net realized gains on investments ..... 0.00 0.00
------- --------
Total distributions ............................................. (0.74) (1.35)
------- --------
Net asset value, end of period ..................................... $ 15.66 $ 12.99
======= ========
Total return ....................................................... 26.33 % 2.47 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $90,567 $ 69,401
Ratio of expenses to average net assets .......................... 0.97 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... (0.39)% 0.14 %
Portfolio turnover rate .......................................... 69.90 % 205.28 %
<CAPTION>
WRL C.A.S.E. GROWTH
========================================
DECEMBER 31,
----------------------------------------
1997 1996 1995(1)
------------- ------------- ------------
<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
-------- -------- ---------
Net 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 ....................................................... 15.03 % 17.50 % 20.65 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 60,596 $ 26,559 $ 2,578
Ratio of expenses to average net assets .......................... 1.00 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 0.25 % 0.94 % 1.02 %
Portfolio turnover rate .......................................... 196.50 % 160.27 % 121.62 %
</TABLE>
<TABLE>
<CAPTION>
WRL NWQ VALUE EQUITY
==============================
JUNE 30, DECEMBER 31,
-------------- ---------------
1999 1998
-------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 12.12 $ 13.90
Income from operations:
Net investment income (loss) ..................................... 0.05 0.12
Net realized and unrealized gain (loss) on investments ........... 2.18 (0.78)
-------- ---------
Net income (loss) from operations ................................ 2.23 (0.66)
-------- ---------
Distributions:
Dividends from net investment income ............................. (0.05) (0.13)
Dividends in excess of net investment income ..................... 0.00 (0.12)
Distributions from net realized gains on investments ............. 0.00 (0.62)
Distributions in excess of net realized gains on investments ..... 0.00 (0.25)
-------- ---------
Total distributions ............................................. (0.05) (1.12)
-------- ---------
Net asset value, end of period ..................................... $ 14.30 $ 12.12
======== =========
Total return ....................................................... 18.47 % (4.78)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $177,024 $ 157,157
Ratio of expenses to average net assets .......................... 0.88 % 0.89 %
Ratio of net investment income (loss) to average net assets ...... 0.81 % 0.89 %
Portfolio turnover rate .......................................... 14.68 % 43.60 %
<CAPTION>
WRL NWQ VALUE EQUITY
==================================
DECEMBER 31,
----------------------------------
1997 1996(1)
----------------- ----------------
<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
----------- ----------
Net 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 ....................................................... 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 .......................... 0.89 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 0.90 % 0.89 %
Portfolio turnover rate .......................................... 17.28 % 7.93 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 133
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL GE/SCOTTISH
EQUITABLE INTERNATIONAL EQUITY
============================================
JUNE 30, DECEMBER 31,
------------- ----------------------------
1999 1998 1997(1)
------------- ------------- ------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................... $ 12.07 $ 10.70 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.05 0.03 0.02
Net realized and unrealized gain (loss) on investments ........... 0.08 1.35 0.73
------- ------- -------
Net income (loss) from operations ................................ 0.13 1.38 0.75
------- ------- -------
Distributions:
Dividends from net investment income ............................. (0.02) (0.01) (0.01)
Dividends in excess of net investment income ..................... 0.00 0.00 (0.04)
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 ............................................. (0.02) (0.01) (0.05)
------- ------- -------
Net asset value, end of period ..................................... $ 12.18 $ 12.07 $ 10.70
======= ======= =======
Total return ....................................................... 1.03 % 12.85 % 7.50 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $36,704 $ 32,149 $ 19,795
Ratio of expenses to average net assets .......................... 1.50 % 1.50 % 1.50 %
Ratio of net investment income (loss) to average net assets ...... 0.88 % 0.30 % 0.18 %
Portfolio turnover rate .......................................... 41.20 % 71.74 % 54.33 %
</TABLE>
<TABLE>
<CAPTION>
WRL GE U.S. EQUITY
=================================================
JUNE 30, DECEMBER 31,
-------------- --------------------------------
1999 1998 1997(1)
-------------- -------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................... $ 14.42 $ 12.23 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.04 0.09 0.09
Net realized and unrealized gain (loss) on investments ........... 1.89 2.69 2.60
-------- -------- ---------
Net income (loss) from operations ................................ 1.93 2.78 2.69
-------- -------- ---------
Distributions:
Dividends from net investment income ............................. (0.13) (0.15) (0.04)
Dividends in excess of net investment income ..................... 0.00 (0.33) (0.38)
Distributions from net realized gains on investments ............. (0.12) (0.11) (0.04)
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00
-------- -------- ---------
Total distributions ............................................. (0.25) (0.59) (0.46)
-------- -------- ---------
Net asset value, end of period ..................................... $ 16.10 $ 14.42 $ 12.23
======== ======== =========
Total return ....................................................... 13.43 % 22.87 % 27.01 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $158,896 $ 110,803 $ 42,951
Ratio of expenses to average net assets .......................... 0.93 % 1.05 % 1.30 %
Ratio of net investment income (loss) to average net assets ...... 0.46 % 0.67 % 0.75 %
Portfolio turnover rate .......................................... 22.91 % 63.08 % 92.35 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
134 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL THIRD AVENUE WRL J.P. MORGAN
VALUE REAL ESTATE SECURITIES
============================ ==========================
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
------------- -------------- ------------ -------------
1999 1998(1) 1999 1998(1)
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................... $ 9.29 $ 10.00 $ 8.51 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.13 0.06 0.22 0.36
Net realized and unrealized gain (loss) on investments ........... 0.25 (0.74) 0.22 (1.85)
------- ------- -------- --------
Net income (loss) from operations ................................ 0.38 (0.68) 0.44 (1.49)
------- ------- -------- --------
Distributions:
Dividends from net investment income ............................. (0.17) (0.03) (0.15) 0.00
Dividends in excess of net investment income ..................... 0.00 0.00 0.00 0.00
Distributions from net realized gains on investments ............. 0.00 0.00 0.00 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00 0.00 0.00
------- ------- -------- --------
Total distributions ............................................. (0.17) (0.03) (0.15) 0.00
------- ------- -------- --------
Net asset value, end of period ..................................... $ 9.50 $ 9.29 $ 8.80 $ 8.51
======= ======= ======== ========
Total return ....................................................... 4.04 % (6.84)% 5.08 % (14.93)%
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 19,689 $ 18,206 $ 4,112 $ 2,414
Ratio of expenses to average net assets .......................... 1.00 % 1.00 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 2.94 % 0.63 % 4.94 % 6.03 %
Portfolio turnover rate .......................................... 5.78 % 4.35 % 113.60 % 100.80 %
</TABLE>
<TABLE>
<CAPTION>
WRL WRL
GOLDMAN SACHS GOLDMAN SACHS
GROWTH SMALL CAP
=============== ===============
JUNE 30, JUNE 30,
--------------- ---------------
1999(1) 1999(1)
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.01 0.02
Net realized and unrealized gain (loss) on investments ........... 0.35 0.68
-------- ---------
Net income (loss) from operations ................................ 0.36 0.70
-------- ---------
Distributions:
Dividends from net investment income ............................. 0.00 0.00
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. 0.00 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00
-------- ---------
Total distributions ............................................. 0.00 0.00
-------- ---------
Net asset value, end of period ..................................... $ 10.36 $ 10.70
======== =========
Total return ....................................................... 3.60 % 7.00 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 2,180 $ 4,824
Ratio of expenses to average net assets .......................... 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 0.60 % 1.29 %
Portfolio turnover rate .......................................... 4.75 % 73.69 %
<CAPTION>
WRL WRL
T. ROWE PRICE T. ROWE PRICE
DIVIDEND GROWTH SMALL CAP
================= ==============
JUNE 30, JUNE 30,
----------------- --------------
1999(1) 1999(1)
----------------- --------------
<S> <C> <C>
Net asset value, beginning of period ............................... $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.03 0.00
Net realized and unrealized gain (loss) on investments ........... 0.03 1.20
---------- ---------
Net income (loss) from operations ................................ 0.06 1.20
---------- ---------
Distributions:
Dividends from net investment income ............................. 0.00 0.00
Dividends in excess of net investment income ..................... 0.00 0.00
Distributions from net realized gains on investments ............. 0.00 0.00
Distributions in excess of net realized gains on investments ..... 0.00 0.00
---------- ---------
Total distributions ............................................. 0.00 0.00
---------- ---------
Net asset value, end of period ..................................... $ 10.06 $ 11.20
========== =========
Total return ....................................................... 0.60 % 12.00 %
Ratios and supplemental data:
Net assets at end of period (in thousands) ....................... $ 1,994 $ 5,705
Ratio of expenses to average net assets .......................... 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 1.86 % (0.19)%
Portfolio turnover rate .......................................... 2.68 % 6.63 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 SEMI-ANNUAL REPORT 135
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED
(UNAUDITED)
<TABLE>
<CAPTION>
WRL WRL WRL
SALOMON PILGRIM BAXTER DREYFUS
ALL CAP MID CAP GROWTH MID CAP
============= ================ =============
JUNE 30, JUNE 30, JUNE 30,
------------- ---------------- -------------
1999(1) 1999(1) 1999(1)
------------- ---------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of year ................................... $ 10.00 $ 10.00 $ 10.00
Income from operations:
Net Investment income (loss) ....................................... 0.02 0.00 0.01
Net realized and unrealized gain (loss) on investments ............. 0.72 1.09 0.51
-------- -------- --------
Net income (loss) from operations ................................. 0.74 1.09 0.52
-------- -------- --------
Distributions:
Dividends from net investment income ............................... 0.00 0.00 0.00
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 ............................................... 0.00 0.00 0.00
-------- -------- --------
Net asset value, end of period ....................................... $ 10.74 $ 11.09 $ 10.52
======== ======== ========
Total return ......................................................... 7.50 % 10.90 % 5.20 %
Ratios and supplemental data:
Net assets at end of period (in thousands) .......................... $ 5,735 $ 974 $ 705
Ratio of expenses to average net assets ............................. 1.00 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ......... 1.51 % (0.32)% 0.44 %
Portfolio turnover rate ............................................. 27.01 % 150.75 % 10.26 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
136 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 1 -- ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Fund, Inc. (collectively referred to as the "Fund" and
individually as a "Portfolio") is an 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. Each period reported on within
the Semi-Annual Report reflects a full six or twelve month period except as
follows:
<TABLE>
<CAPTION>
PORTFOLIO INCEPTION DATE
- --------- ---------------
<S> <C>
WRL Alger Aggressive Growth .................... 03/01/1994
WRL AEGON Balanced ............................. 03/01/1994
WRL Federated Growth & Income .................. 03/01/1994
WRL Dean Asset Allocation ...................... 01/03/1995
WRL C.A.S.E. Growth ............................ 05/01/1995
WRL NWQ Value Equity ........................... 05/01/1996
WRL GE/Scottish Equitable
International Equity ......................... 01/02/1997
WRL GE U.S. Equity ............................. 01/02/1997
WRL Third Avenue Value ......................... 01/02/1998
WRL J.P. Morgan Real Estate Securities ......... 05/01/1998
WRL Goldman Sachs Growth ....................... 05/03/1999
WRL Goldman Sachs Small Cap .................... 05/03/1999
WRL T. Rowe Price Dividend Growth .............. 05/03/1999
WRL T. Rowe Price Small Cap .................... 05/03/1999
WRL Salomon All Cap ............................ 05/03/1999
WRL Pilgrim Baxter Mid Cap Growth .............. 05/03/1999
WRL Dreyfus Mid Cap ............................ 05/03/1999
</TABLE>
See the prospectus and the Statement of Additional Information for a
description of each Portfolio's investment objective.
The following is a summary of significant accounting policies followed
consistently by the Fund in accordance with generally accepted accounting
principles. The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
A. VALUATION OF INVESTMENTS
The securities held by WRL J.P. Morgan Money Market 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.
1999 SEMI-ANNUAL REPORT 137
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 1 -- (CONTINUED)
D. FORWARD FOREIGN CURRENCY CONTRACTS
Certain Portfolios of the Fund are authorized to enter into forward foreign
currency contracts for the purpose of hedging against exchange risk arising
from current or anticipated 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 gain
or loss is realized. Risks may arise from unanticipated movements in the
currency's value relative to the U.S. dollar and from the possible inability of
counterparties to meet the terms of their contracts. The open forward currency
contracts at June 30, 1999 are listed in Note 5.
E. FUTURES CONTRACTS
Certain Portfolios of the Fund are authorized to enter into stock index or U.S.
Treasury securities futures contracts. Futures contracts are valued at the
settlement price established each day by the board of trade or exchange on
which they are traded. The underlying face amounts at value of any open futures
contracts at June 30, 1999 are listed in Note 5. The variation margin
receivable or payable, as applicable, is included in the accompanying
Statements of Assets and 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. For securities
loaned, collateral values are continuously maintained at not less than 100 % by
pricing both the securities loaned and the collateral daily.
During the period ended June 30, 1999, 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>
WRL AEGON Bond .......................... $ 23
WRL Janus Growth ........................ 921
WRL Janus Global ........................ 335
WRL LKCM Strategic Total Return ......... 30
WRL VKAM Emerging Growth ................ 264
WRL Alger Aggressive Growth ............. 194
WRL AEGON Balanced ...................... 34
WRL Federated Growth & Income ........... 4
WRL Dean Asset Allocation ............... 32
WRL C.A.S.E. Growth ..................... 7
WRL NWQ Value Equity .................... 5
WRL GE U.S. Equity ...................... 8
</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 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
items including, but not limited to: wash sales, foreign currency transactions,
net operating losses and capital loss carryforwards.
138 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 1 -- (CONTINUED)
H. DIVIDENDS AND DISTRIBUTIONS
Dividends of WRL J.P. Morgan Money Market are declared daily and reinvested
monthly. Dividends and capital gains distributions of the remaining Portfolios
are typically declared and reinvested annually. Dividends and distributions of
the Fund are generally paid to and reinvested by the Separate Accounts and
affiliates on the next business day after the ex-date.
An investment in a real estate investment trust ("REIT") equity security may
result in the receipt of income in excess of the security's earnings. This
excess amount may not be determinable at the time of receipt. Amounts
distributed, which are subsequently determined to exceed the security's
earnings, would constitute a return of capital to the Fund's shareholders for
federal income tax purposes.
I. EXPENSE OFFSET ARRANGEMENT
Fees paid indirectly, in the accompanying Statements of Operations, represent
reductions in custody expenses in lieu of interest income earned on incidental
uninvested cash balances. Such fees have been added to custody fees to reflect
total Fund expenses.
J. INVESTMENT RISK
There are certain additional risks involved in investing in REITs rather than a
more diversified portfolio of investments. WRL J.P. Morgan Real Estate
Securities invests primarily in real estate related securities. As a result,
the net asset value can be expected to change in light of factors affecting the
real estate industry. These factors include economic conditions and changes in
zoning laws, real estate values, property taxes and interest rates. The value
of WRL J.P. Morgan Real Estate Securities shares may fluctuate more widely than
the value of shares of a portfolio that invests in a broader range of
industries.
K. REPURCHASE AGREEMENTS
Subject to a Portfolio's investment restrictions and policies, a Portfolio may
enter into repurchase agreements. The Portfolio, through its custodian,
receives delivery of the underlying securities, the market value of which at
the time of purchase is required to be in an amount equal to at least 100 % of
the resale price.
NOTE 2 -- INVESTMENT ADVISORY AND
TRANSACTIONS WITH AFFILIATES
WRL Investment Management, Inc. ("WRL Management") is the investment adviser
for the Fund. WRL Investment Services, Inc. ("WRL Services") provides the Fund
with administrative and transfer agency services. AFSG Securities Corporation
("AFSG") is the Fund's distributor. Prior to May 1, 1999, InterSecurities, Inc.
("ISI") was the Fund's distributor. WRL Management and WRL Services are wholly
owned subsidiaries of WRL. WRL and ISI are indirect wholly owned subsidiaries
of AEGON NV, a Netherlands corporation. AFSG is an affiliate of WRL Management.
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>
WRL J.P. Morgan Money Market ......... 0.40 % 0.70 %
WRL AEGON Bond ....................... 0.45 % 0.70 %
WRL Janus Growth (1) ................. 0.80 % 1.00 %
WRL Janus Global (2) ................. 0.80 % 1.00 %
WRL LKCM Strategic Total Return 0.80 % 1.00 %
WRL VKAM Emerging Growth ............. 0.80 % 1.00 %
WRL Alger Aggressive Growth .......... 0.80 % 1.00 %
WRL AEGON Balanced ................... 0.80 % 1.00 %
WRL Federated Growth & Income 0.75 % 1.00 %
WRL Dean Asset Allocation ............ 0.80 % 1.00 %
WRL C.A.S.E. Growth .................. 0.80 % 1.00 %
WRL NWQ Value Equity ................. 0.80 % 1.00 %
WRL GE/Scottish Equitable
International Equity ............... 1.00 % 1.50 %
WRL GE U.S. Equity ................... 0.80 % 1.30 %
WRL Third Avenue Value ............... 0.80 % 1.00 %
WRL J.P. Morgan Real Estate
Securities ......................... 0.80 % 1.00 %
WRL Goldman Sachs Growth (3) ......... 0.90 % 1.00 %
WRL Goldman Sachs Small Cap .......... 0.90 % 1.00 %
WRL T. Rowe Price Dividend
Growth (3) ......................... 0.90 % 1.00 %
WRL T. Rowe Price Small Cap .......... 0.75 % 1.00 %
WRL Salomon All Cap (3) .............. 0.90 % 1.00 %
WRL Pilgrim Baxter Mid Cap
Growth (3) ......................... 0.90 % 1.00 %
WRL Dreyfus Mid Cap (4) .............. 0.85 % 1.00 %
</TABLE>
1999 SEMI-ANNUAL REPORT 139
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 2 -- (CONTINUED)
(1) WRL Management currently waives 0.025 % of its advisory fee for the first
$ 3 billion of the Portfolio's average daily net assets (net fee -
0.775 %); and 0.05 % for the Portfolio's average daily net assets above
$ 3 billion (net fee - 0.75 %). This waiver is voluntary and may be
terminated at any time upon 90 days' notice to the Fund.
(2) WRL Management currently waives 0.025 % of its advisory fee for the
Portfolio's average daily net assets above $ 2 billion (net fee -
0.775 %). This waiver is voluntary and may be terminated at any time upon
90 days' notice to the Fund.
(3) WRL Management receives compensation for its services at 0.90 % for the
first $ 100 million of the Portfolio's average daily net assets; and
0.80 % for the Portfolio's average daily net assets above $ 100 million.
(4) WRL Management receives compensation for its services at 0.85 % for the
first $ 100 million of the Portfolio's average daily net assets; and
0.80 % for the Portfolio's average daily net assets above $ 100 million.
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 Fund's Statement of Additional
Information.
AEGON USA Investment Management, Inc. ("AEGON Management") is the Sub-Adviser
to WRL AEGON Bond and WRL AEGON Balanced. Scottish Equitable Investment
Management, Ltd. ("SEIM") is a Sub-Adviser to WRL GE/Scottish Equitable
International Equity. AEGON Management and SEIM are indirect wholly owned
subsidiaries 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 a
Sub-Adviser during the period ended June 30, 1999, as follows:
<TABLE>
<CAPTION>
PORTFOLIO COMMISSIONS
- --------- ------------
<S> <C>
WRL VKAM Emerging Growth ............ $ 2
WRL Alger Aggressive Growth ......... 479
WRL Third Avenue Value .............. 5
</TABLE>
C. INVESTMENT IN AFFILIATES
The Fund did not hold investments in affiliates at June 30, 1999. Security
transactions in affiliates during the period ended June 30, 1999 are as
follows:
<TABLE>
<CAPTION>
1999
1999 1999 DIVIDEND
PURCHASES SALES INCOME
----------- ---------- ---------
<S> <C> <C> <C>
WRL Janus Global:
AEGON NV ......... $ 2,543 $ 4,917 $ 0
</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 Accounts and
affiliates. 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 distribution plan ("Distribution
Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended. Pursuant to the Distribution Plan, the Fund entered into a
Distribution Agreement with AFSG effective May 1, 1999. Prior to May 1, 1999,
the Distribution Agreement was with ISI. ISI waived payment by the Fund for the
period January 1, 1999 through April 30, 1999.
Under the Distribution Plan and Distribution Agreement, 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 of each Portfolio.
AFSG has determined that it will not seek payment by the Fund of the
distribution expenses incurred with respect to any Portfolio before April 30,
2000. Prior to AFSG 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
140 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 2 -- (CONTINUED)
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 Mutual Funds, an affiliate of the
Fund. At June 30, 1999, the market value of invested plan amounts was $ 85.
Invested plan amounts and the total liability for deferred compensation to the
Directors under the Plan at June 30, 1999 is included in Net assets in the
accompanying Statements of Assets and Liabilities.
NOTE 3 -- SECURITIES TRANSACTIONS
Securities transactions for the period ended June 30, 1999, are summarized as
follows:
<TABLE>
<CAPTION>
PROCEEDS FROM MATURITIES
PURCHASES OF SECURITIES AND SALES OF SECURITIES
----------------------- ------------------------
LONG-TERM EXCLUDING LONG-TERM EXCLUDING
PORTFOLIO U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT
- --------- --------------------- ----------------- -------------------- ----------------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market ................... $ 0 $ 3,658,482 $ 0 $ 3,622,144
WRL AEGON Bond ................................. 18,639 569,336 13,417 573,328
WRL Janus Growth ............................... 1,331,189 249,777 1,898,225 344,383
WRL Janus Global ............................... 383,430 53,480 327,891 100,013
WRL LKCM Strategic Total Return ................ 141,726 0 152,462 0
WRL VKAM Emerging Growth ....................... 660,930 5,782,403 660,453 5,757,791
WRL Alger Aggressive Growth .................... 441,590 0 383,126 0
WRL AEGON Balanced ............................. 23,830 929 19,355 3,172
WRL Federated Growth & Income .................. 55,973 0 45,542 6,406
WRL Dean Asset Allocation ...................... 86,714 18,501 110,948 9,166
WRL C.A.S.E. Growth ............................ 59,206 0 55,302 0
WRL NWQ Value Equity ........................... 28,229 0 21,419 9,941
WRL GE/Scottish Equitable
International Equity .......................... 12,480 0 14,842 0
WRL GE U.S. Equity ............................. 55,599 0 28,363 0
WRL Third Avenue Value ......................... 1,597 0 906 0
WRL J.P. Morgan Real Estate Securities ......... 4,406 0 3,029 0
WRL Goldman Sachs Growth ....................... 2,871 0 86 0
WRL Goldman Sachs Small Cap .................... 6,096 169 1,469 150
WRL T. Rowe Price Dividend Growth .............. 1,746 1,988 28 1,730
WRL T. Rowe Price Small Cap .................... 5,356 9,829 151 9,832
WRL Salomon All Cap ............................ 5,959 447 594 447
WRL Pilgrim Baxter Mid Cap Growth .............. 2,327 0 1,504 0
WRL Dreyfus Mid Cap ............................ 626 0 54 0
</TABLE>
1999 SEMI-ANNUAL REPORT 141
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 4 -- FEDERAL INCOME TAX MATTERS
The income, expenses, gains and losses on security transactions attributed to
each Portfolio for accounting purposes are also attributed to that Portfolio
for federal income tax purposes. Gains and losses on forward currency
contracts, if applicable, are treated as ordinary income for federal income tax
purposes pursuant to Section 988 of the Internal Revenue Code.
Each Portfolio has and will continue to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies, and
accordingly, has made or intends to make sufficient distributions of net
investment income and net realized gains, if any, to relieve it from all
federal and state income taxes and federal excise taxes.
The net capital loss carryforwards noted below as of December 31, 1998, if
applicable, are available to offset future realized capital gains through the
periods listed. Each Portfolio has elected to treat the net capital losses
incurred in the two month period prior to December 31, 1998, (Post-October
Losses Deferred), if applicable, as having been incurred in the current fiscal
year.
<TABLE>
<CAPTION>
PRIOR YEAR
POST-OCTOBER DECEMBER 31, 1998 NET CAPITAL LOSS
LOSSES TO BE NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO RECOGNIZED CARRYFORWARD AVAILABLE THROUGH
- --------- -------------- ------------------- -----------------------------------
<S> <C> <C> <C>
WRL J.P. Morgan Money Market ....................... $ 0 $ 0 n/a
WRL AEGON Bond ..................................... 0 4,326 $ 4,065 through December 31, 2002
261 through December 31, 2005
WRL Janus Growth ................................... 0 0 n/a
WRL Janus Global ................................... 3,455 0 n/a
WRL LKCM Strategic Total Return .................... 0 0 n/a
WRL VKAM Emerging Growth ........................... 0 0 n/a
WRL Alger Aggressive Growth ........................ 0 0 n/a
WRL AEGON Balanced ................................. 641 2,432 December 31, 2006
WRL Federated Growth & Income ...................... 0 0 n/a
WRL Dean Asset Allocation .......................... 0 0 n/a
WRL C.A.S.E. Growth ................................ 728 0 n/a
WRL NWQ Value Equity ............................... 5,333 0 n/a
WRL GE/Scottish Equitable International Equity ..... 173 545 105 through December 31, 2005
440 through December 31, 2006
WRL GE U.S. Equity ................................. 0 0 n/a
WRL Third Avenue Value ............................. 0 0 n/a
WRL J.P. Morgan Real Estate Securities ............. 5 72 December 31, 2006
WRL Goldman Sachs Growth ........................... 0 0 n/a
WRL Goldman Sachs Small Cap ........................ 0 0 n/a
WRL T. Rowe Price Dividend Growth .................. 0 0 n/a
WRL T. Rowe Price Small Cap ........................ 0 0 n/a
WRL Salomon All Cap ................................ 0 0 n/a
WRL Pilgrim Baxter Mid Cap Growth .................. 0 0 n/a
WRL Dreyfus Mid Cap ................................ 0 0 n/a
</TABLE>
142 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 4 -- (CONTINUED)
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of June 30, 1999, are as
follows:
<TABLE>
<CAPTION>
NET UNREALIZED
FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO COST BASIS APPRECIATION (DEPRECIATION) (DEPRECIATION)
- --------- ------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market ........................... $ 247,208 $ 0 $ 0 $ 0
WRL AEGON Bond ......................................... 161,420 388 (3,910) (3,522)
WRL Janus Growth ....................................... 1,844,159 1,202,634 (12,433) 1,190,201
WRL Janus Global ....................................... 839,464 418,898 (16,079) 402,819
WRL LKCM Strategic Total Return ........................ 484,212 131,480 (4,773) 126,707
WRL VKAM Emerging Growth ............................... 763,780 314,996 (11,304) 303,692
WRL Alger Aggressive Growth ............................ 522,339 215,287 (10,169) 205,118
WRL AEGON Balanced ..................................... 84,866 18,781 (1,283) 17,498
WRL Federated Growth & Income .......................... 84,415 5,625 (3,286) 2,339
WRL Dean Asset Allocation .............................. 315,490 32,065 (9,554) 22,511
WRL C.A.S.E. Growth .................................... 87,081 14,685 (9,058) 5,627
WRL NWQ Value Equity ................................... 155,624 33,474 (12,343) 21,131
WRL GE/Scottish Equitable International Equity ......... 27,391 3,431 (1,999) 1,432
WRL GE U.S. Equity ..................................... 126,867 23,080 (2,027) 21,053
WRL Third Avenue Value ................................. 17,491 1,684 (2,496) (812)
WRL J.P. Morgan Real Estate Securities ................. 3,768 66 (142) (76)
WRL Goldman Sachs Growth ............................... 2,780 153 (43) 110
WRL Goldman Sachs Small Cap ............................ 4,686 263 (56) 207
WRL T. Rowe Price Dividend Growth ...................... 1,976 57 (26) 31
WRL T. Rowe Price Small Cap ............................ 5,213 525 (119) 406
WRL Salomon All Cap .................................... 5,679 298 (143) 155
WRL Pilgrim Baxter Mid Cap Growth ...................... 905 100 (28) 72
WRL Dreyfus Mid Cap .................................... 615 40 (13) 27
</TABLE>
1999 SEMI-ANNUAL REPORT 143
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 5 -- COMMITMENTS
WRL Janus Growth, WRL Janus Global and WRL GE/Scottish Equitable International
Equity entered into forward foreign currency contracts, which obligate the Fund
to deliver currencies at specified future dates. The open contracts at June 30,
1999, 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>
WRL Janus Growth
Euro Dollar ..................... 50 07/15/1999 $ 52 $ (5)
Euro Dollar ..................... (50) 07/15/1999 (52) 7
Euro Dollar ..................... 3,675 07/22/1999 3,796 (374)
Euro Dollar ..................... 4,500 07/22/1999 4,649 (478)
Euro Dollar ..................... 5,000 07/22/1999 5,165 (470)
Euro Dollar ..................... 3,400 07/22/1999 3,512 (331)
Euro Dollar ..................... 1,500 07/22/1999 1,550 (125)
Euro Dollar ..................... 2,100 07/22/1999 2,169 (154)
Euro Dollar ..................... (75) 07/22/1999 (77) 11
Euro Dollar ..................... (20,100) 07/22/1999 (20,764) 2,896
Euro Dollar ..................... 110 07/28/1999 114 (11)
Euro Dollar ..................... (110) 07/28/1999 (114) 16
Euro Dollar ..................... 90 08/12/1999 93 (9)
Euro Dollar ..................... (90) 08/12/1999 (93) 13
---------- -------
Total WRL Janus Growth ......... $ 0 $ 986
========== =======
WRL Janus Global
British Pound ................... (447) 07/01/1999 $ (704) $ 6
British Pound ................... 475 07/02/1999 748 (7)
British Pound ................... 564 07/02/1999 889 (5)
British Pound ................... 745 07/06/1999 1,175 0
British Pound ................... (23) 07/06/1999 (37) 0
British Pound ................... 8,690 10/08/1999 13,710 (310)
British Pound ................... 5,000 10/08/1999 7,889 (148)
British Pound ................... (36,590) 10/08/1999 (57,729) 1,258
British Pound ................... (4,000) 10/14/1999 (6,311) 166
British Pound ................... (7,110) 12/09/1999 (11,228) 261
Canadian Dollar ................. (865) 07/02/1999 (586) 3
Canadian Dollar ................. (4,268) 07/06/1999 (2,890) (3)
Canadian Dollar ................. (1,900) 10/08/1999 (1,288) 13
Canadian Dollar ................. (2,100) 10/08/1999 (1,424) 12
Canadian Dollar ................. (700) 11/18/1999 (475) 7
Euro Dollar ..................... 139 07/01/1999 144 (1)
Euro Dollar ..................... 25 07/01/1999 26 0
Euro Dollar ..................... 69 07/02/1999 72 (1)
Euro Dollar ..................... 128 07/02/1999 132 (1)
Euro Dollar ..................... 20 07/02/1999 21 0
Euro Dollar ..................... 145 07/06/1999 149 0
</TABLE>
144 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
WRL Janus Global (continued)
Euro Dollar ..................... (163) 07/06/1999 $ (168) $ 1
Euro Dollar ..................... (518) 07/06/1999 (535) 1
Euro Dollar ..................... (6,900) 07/15/1999 (7,124) 957
Euro Dollar ..................... (4,100) 07/28/1999 (4,237) 583
Euro Dollar ..................... (2,600) 08/12/1999 (2,690) 380
Euro Dollar ..................... (15,900) 08/12/1999 (16,451) 2,328
Euro Dollar ..................... (4,000) 08/27/1999 (4,143) 546
Euro Dollar ..................... (24,000) 08/27/1999 (24,861) 3,275
Hong Kong Dollar ................ (26,500) 05/07/2001 (3,345) (14)
Hong Kong Dollar ................ (26,400) 05/07/2001 (3,332) (20)
Hong Kong Dollar ................ (6,600) 05/07/2001 (833) (5)
Hong Kong Dollar ................ (12,500) 05/07/2001 (1,578) (9)
Hong Kong Dollar ................ (18,000) 05/07/2001 (2,272) (14)
Hong Kong Dollar ................ (7,000) 05/07/2001 (883) (5)
Hong Kong Dollar ................ (14,000) 05/07/2001 (1,767) (8)
Japanese Yen .................... (2,250,000) 09/16/1999 (18,813) 533
Japanese Yen .................... (555,000) 09/16/1999 (4,641) 156
Japanese Yen .................... 800,000 10/08/1999 6,713 (221)
Japanese Yen .................... 100,000 10/08/1999 839 (24)
Japanese Yen .................... 1,350,000 10/08/1999 11,327 (418)
Japanese Yen .................... 950,000 10/08/1999 7,971 (264)
Japanese Yen .................... (1,600,000) 10/08/1999 (13,425) 891
Japanese Yen .................... (400,000) 10/08/1999 (3,356) 75
Japanese Yen .................... (100,000) 10/08/1999 (839) 17
Japanese Yen .................... (1,100,000) 10/08/1999 (9,230) 382
Japanese Yen .................... (1,250,000) 10/08/1999 (10,488) 89
Japanese Yen .................... (200,000) 10/14/1999 (1,680) 36
Japanese Yen .................... (2,345,000) 10/21/1999 (19,717) 577
Japanese Yen .................... (85,000) 10/21/1999 (715) 6
Japanese Yen .................... (500,000) 11/18/1999 (4,223) 41
Japanese Yen .................... (700,000) 12/03/1999 (5,926) (93)
Swedish Krona ................... (4,212) 07/01/1999 (497) 2
Swiss Franc ..................... (4,600) 10/08/1999 (2,998) 154
Swiss Franc ..................... (1,500) 10/21/1999 (979) 52
----------- --------
Total WRL Janus Global ......... $ (202,613) $ 11,237
=========== ========
</TABLE>
1999 SEMI-ANNUAL REPORT 145
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 5 -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE IN NET UNREALIZED
SETTLEMENT U.S. DOLLARS APPRECIATION
CURRENCY BOUGHT (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION)
- -------- --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
WRL GE/Scottish Equitable International Equity
British Pound ............................... 13 07/01/1999 $ 20 $ 0
British Pound ............................... (3) 07/01/1999 (4) 0
British Pound ............................... 3 07/02/1999 5 0
British Pound ............................... (9) 07/02/1999 (15) 0
British Pound ............................... 3 07/06/1999 5 0
British Pound ............................... (9) 07/06/1999 (14) 0
Danish Krone ................................ 13 07/01/1999 2 0
Euro Dollar ................................. (77) 07/01/1999 (80) 1
Euro Dollar ................................. (25) 07/02/1999 (26) 0
Euro Dollar ................................. (18) 07/06/1999 (18) 0
Euro Dollar ................................. 1 07/30/1999 1 0
Euro Dollar ................................. 3 07/30/1999 3 0
Euro Dollar ................................. (665) 07/30/1999 (688) 5
------- ---
Total WRL GE/Scottish Equitable
International Equity ...................... $ (809) $ 6
======= ===
</TABLE>
WRL GE U.S. Equity entered into Standard & Poor's Index of 500 Common Stocks
("S&P 500 Index") futures contracts, which obligate the Portfolio to settle
variation margins in cash daily. Securities with an aggregate market value of
$ 1,210 have been segregated with the custodian to cover margin requirements
for the following open futures contracts at June 30, 1999:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT VALUE IN APPRECIATION
TYPE CONTRACTS DATE U.S. DOLLARS (DEPRECIATION)
- ---- ----------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
S&P 500 Index ......... 16 09/17/1999 $ 5,527 $ 197
</TABLE>
WRL GE/Scottish Equitable International Equity entered into KL Composite Index
and FTSE 100 Index futures contracts, which obligate the Portfolio to settle
variation margins in cash daily. Cash in the amount of $ 4 and $ 19 for the KL
Composite Index and FTSE 100 Index, respectively, is held by the broker to
cover margin requirements for the following open futures contracts at June 30,
1999:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT VALUE IN APPRECIATION
TYPE CONTRACTS DATE U.S. DOLLARS (DEPRECIATION)
- ---- ----------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
KL Composite Index .............. 2 07/30/1999 $ 45 $ 1
FTSE 100 Index .................. 4 09/17/1999 400 (11)
----- ------
Total WRL GE/Scottish Equitable
International Equity ......... $ 445 $ (10)
===== ======
</TABLE>
146 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 6 -- FINANCIAL HIGHLIGHTS
Per share information has been computed using average shares outstanding
throughout each period. Total return reflects all 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. Total return and portfolio
turnover rate are not annualized for periods of less than one year.
Ratio of expenses and ratio of net investment income (loss) to average net
assets are annualized for periods of less than one year. Ratio of expenses to
average net assets is net of the advisory fee waiver (see Note 2A). Without the
advisory fee waived by WRL Management the ratio for each period presented would
be as follows:
<TABLE>
<CAPTION>
JUNE 30,
------------
PORTFOLIO 1999
- --------- ------------
<S> <C>
WRL Alger Aggressive Growth ............................ *
WRL AEGON Balanced ..................................... *
WRL Federated Growth & Income .......................... *
WRL C.A.S.E. Growth .................................... *
WRL NWQ Value Equity ................................... *
WRL GE/Scottish Equitable International Equity ......... 1.94 %
WRL GE U.S. Equity ..................................... *
WRL Third Avenue Value ................................. 1.05 %
WRL J.P. Morgan Real Estate Securities ................. 2.90 %
WRL Goldman Sachs Growth ............................... 4.39 %
WRL Goldman Sachs Small Cap ............................ 2.36 %
WRL T. Rowe Price Dividend Growth ...................... 5.41 %
WRL T. Rowe Price Small Cap ............................ 2.47 %
WRL Salomon All Cap .................................... 2.09 %
WRL Pilgrim Baxter Mid Cap Growth ...................... 4.62 %
WRL Dreyfus Mid Cap .................................... 4.83 %
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------
PORTFOLIO 1998 1997 1996 1995 1994
- --------- ------------ ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
WRL Alger Aggressive Growth ............................ * * * * 1.18 %
WRL AEGON Balanced ..................................... * * * * 1.34 %
WRL Federated Growth & Income .......................... * * * 1.08 % 1.90 %
WRL C.A.S.E. Growth .................................... * 1.13 % 1.64 % 4.15 % **
WRL NWQ Value Equity ................................... * * 1.03 % ** **
WRL GE/Scottish Equitable International Equity ......... 1.96 % 3.12 % ** ** **
WRL GE U.S. Equity ..................................... * 1.49 % ** ** **
WRL Third Avenue Value ................................. 1.13 % ** ** ** **
WRL J.P. Morgan Real Estate Securities ................. 3.34 % ** ** ** **
WRL Goldman Sachs Growth ............................... ** ** ** ** **
WRL Goldman Sachs Small Cap ............................ ** ** ** ** **
WRL T. Rowe Price Dividend Growth ...................... ** ** ** ** **
WRL T. Rowe Price Small Cap ............................ ** ** ** ** **
WRL Salomon All Cap .................................... ** ** ** ** **
WRL Pilgrim Baxter Mid Cap Growth ...................... ** ** ** ** **
WRL Dreyfus Mid Cap .................................... ** ** ** ** **
</TABLE>
1999 SEMI-ANNUAL REPORT 147
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 6 -- (CONTINUED)
Without the advisory fee waived by WRL Management and the fees paid indirectly,
the ratio for each period presented would be as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
------------ -------------------------
PORTFOLIO 1999 1998 1997
- --------- ------------ ------------ ----------
<S> <C> <C> <C>
WRL C.A.S.E. Growth .................................... * * 1.14 %
WRL GE/Scottish Equitable International Equity ......... 1.94 % 1.96 % 3.14 %
WRL GE U.S. Equity ..................................... * * 1.54 %
WRL Third Avenue Value ................................. 1.05 % 1.13 % **
WRL J.P. Morgan Real Estate Securities ................. 2.90 % 3.34 % **
WRL Goldman Sachs Growth ............................... 4.39 % ** **
WRL Goldman Sachs Small Cap ............................ 2.36 % ** **
WRL T. Rowe Price Dividend Growth ...................... 5.41 % ** **
WRL T. Rowe Price Small Cap ............................ 2.47 % ** **
WRL Salomon All Cap .................................... 2.09 % ** **
WRL Pilgrim Baxter Mid Cap Growth ...................... 4.62 % ** **
WRL Dreyfus Mid Cap .................................... 4.83 % ** **
</TABLE>
* No waiver since the Portfolio did not exceed expense limitations.
** Portfolio was not in existence during this period.
NOTE 7 -- SCHEDULE OF INVESTMENTS
The following provides additional information on certain of the holdings in
each Portfolio.
(a) No dividends were paid during the preceding twelve months.
(b) As of June 30, 1999, the security is on loan (see Note 1F). The market
value of all securities on loan at June 30, 1999, by Portfolio, is as
follows:
<TABLE>
<CAPTION>
PORTFOLIO MARKET VALUE
- --------- -------------
<S> <C>
WRL AEGON Bond .......................... $ 16,393
WRL Janus Growth ........................ 226,691
WRL Janus Global ........................ 104,524
WRL LKCM Strategic Total Return ......... 41,281
WRL VKAM Emerging Growth ................ 173,473
WRL Alger Aggressive Growth ............. 72,474
WRL AEGON Balanced ...................... 23,144
WRL Federated Growth & Income ........... 3,415
WRL Dean Asset Allocation ............... 39,812
WRL C.A.S.E. Growth ..................... 12,646
WRL NWQ Value Equity .................... 12,300
WRL GE U.S. Equity ...................... 11,338
</TABLE>
148 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 7 -- (CONTINUED)
(c) Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
(d) Floating or variable rate note. Rate listed is as of June 30, 1999.
(e) At June 30, 1999, the collateral for the repurchase agreements is as
follows:
<TABLE>
<CAPTION>
MARKET VALUE
PORTFOLIO COLLATERAL AND ACCRUED INTEREST
- --------- --------------------------------------------- ---------------------
<S> <C> <C>
WRL LKCM Strategic Total Return $ 10,329 Fannie Mae ARM - 313665
6.69 %, due 05/01/2027 $ 4,136
WRL Alger Aggressive Growth $ 4,890 Freddie Mac - Series 1618 - Class FB
5.30 %, due 10/15/2008 4,897
$ 15,737 Fannie Mae ARM - 374114
7.12 %, due 10/01/2023 8,577
WRL Federated Growth & Income $ 1,616 U.S. Treasury Note
10.63 %, due 08/15/2015 2,392
WRL NWQ Value Equity $ 1,398 Freddie Mac - Series 1208 - Class D
5.35 %, due 02/15/2022 917
$ 6,909 Small Business Association - 504479
5.38 %, due 03/25/2024 6,876
WRL Goldman Sachs Small Cap $ 239 Fannie Mae ARM - 262604
6.42 %, due 12/01/2023 37
WRL Salomon All Cap $ 185 U.S. Treasury Note
13.88 %, due 05/15/2011 269
WRL Dreyfus Mid Cap $ 255 Freddie Mac ARM - 845971
6.94 %, due 10/01/2024 40
</TABLE>
(f) For WRL VKAM Emerging Growth, the Convertible Preferred Stocks -
Telecommunications category has been omitted since its percentage of net
assets is less then 0.01 %. The security in this category, Vodafone
AirTouch Public Limited Company - Series C has less than 1 share and a
cost and market value of less than $ 1.
(g) Market value is less then $ 1.
(h) Number of shares is less than 1.
(i) At June 30, 1999, a portion or all of the security is segregated with the
custodian to cover margin requirements for open futures contracts. The
market value of all securities segregated at June 30, 1999 is $ 1,210 (see
Note 5).
1999 SEMI-ANNUAL REPORT 149
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT JUNE 30, 1999
ALL AMOUNTS IN THOUSANDS
(UNAUDITED)
NOTE 7 -- (CONTINUED)
DEFINITIONS
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
GDR Global Depositary Receipt
PEPS Premium Equity Partnership Security Units
REIT Real Estate Investment Trust
STRYPES Structured Yield Product Exchangeable for Common Stock
TRACES Trust Automatic Common Exchange Securities
150 WRL SERIES FUND, INC.
<PAGE>
WRL SERIES FUND, INC.
OFFICE OF THE WRL SERIES FUND
570 Carillon Parkway
St. Petersburg, FL 33716
1-800-851-9777
INDEPENDENT ACCOUNTANTS: CUSTODIAN:
PricewaterhouseCoopers LLP Investors Bank & Trust Company
160 Federal Street 200 Clarendon Street
Boston, MA 02110 16th Floor
Boston, MA 02116
INVESTMENT ADVISER:
WRL Investment Management, Inc.
570 Carillon Parkway
St. Petersburg, FL 33716
SUB-ADVISERS:
Janus Capital Corporation Scottish Equitable Investment
100 Fillmore Street Management Limited
Denver, CO 80206 Edinburgh Park
Edinburgh EH12 9SE, Scotland
Luther King Capital AEGON USA
Management Corporation Investment Management, Inc.
301 Commerce Street, Suite 1600 4333 Edgewood Road, N.E.
Fort Worth, TX 76102 Cedar Rapids, IA 52499
Federated Investment Counseling Van Kampen Asset
Federated Investors Tower Management Inc.
Pittsburgh, PA 15222-3779 One Parkview Plaza
Oakbrook Terrace, IL 60181
NWQ Investment Fred Alger Management, Inc.
Management Company, Inc. 1 World Trade Center, Suite 9333
2049 Century Park East, 4th Floor New York, NY 10048
Los Angeles, CA 90067
EQSF Advisers, Inc. J.P. Morgan Investment
767 Third Avenue Management Inc.
New York, NY 10017-2023 522 Fifth Avenue
New York, NY 10036
C.A.S.E. Management, Inc. Dean Investment Associates
5355 Tower Center Road, Suite 702 2480 Kettering Tower
Boca Raton, FL 33486 Dayton, OH 45423-2480
Goldman Sachs Asset Management GE Investment
One New York Plaza Management Incorporated
New York, NY 10004 3003 Summer Street
Stamford, CT 06905
Salomon Brothers Asset Management Inc. Pilgrim Baxter & Associates, Ltd.
7 World Trade Center 825 Duportail Road
New York, NY 10048 Wayne, PA 19087
T. Rowe Price Associates, Inc. The Dreyfus Corporation
100 E. Pratt Street 200 Park Avenue
Baltimore, MD 21202 New York, NY 10166
[LOGO]
INVESTMENT ADVISER
WRL Investment Management, Inc.
Distributor: AFSG Securities Corporation
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52499
This material must be preceded or accompanied by the Fund's current prospectus.
August 1999
ACC00001-8/99
<PAGE>
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
WRL FREEDOM ATTAINER/registered trademark/ VARIABLE ANNUITY
AT JUNE 30, 1999
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
INCEPTION ONE THREE FIVE TEN SINCE
SUB-ACCOUNT DATE YEAR YEARS YEARS YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 02/24/1989 (2.46)% 2.52 % 3.38 % 3.56 % 3.68 %
WRL AEGON Bond 02/24/1989 (5.00)% 4.05 % 5.69 % 6.30 % 7.08 %
WRL Janus Growth 02/24/1989 36.58 % 30.71 % 30.84 % 20.32 % 21.37 %
WRL Janus Global 12/03/1992 7.28 % 20.60 % 21.83 % n/a 20.98 %
WRL LKCM Strategic Total Return 03/01/1993 2.30 % 12.77 % 14.66 % n/a 12.69 %
WRL VKAM Emerging Growth 03/01/1993 27.72 % 24.10 % 28.20 % n/a 23.26 %
WRL Alger Aggressive Growth 03/01/1994 29.44 % 28.92 % 27.56 % n/a 23.21 %
WRL AEGON Balanced 03/01/1994 1.92 % 10.09 % 9.62 % n/a 8.44 %
WRL Federated Growth & Income 03/01/1994 (2.37)% 9.74 % 11.74 % n/a 9.65 %
WRL Dean Asset Allocation 01/03/1995 (4.91)% 9.22 % n/a n/a 11.48 %
WRL C.A.S.E. Growth 05/01/1996 16.31 % 15.37 % n/a n/a 13.98 %
WRL NWQ Value Equity 05/01/1996 (1.15)% 14.06 % n/a n/a 13.51 %
WRL GE/Scottish Equitable International Equity 01/02/1997 (10.48)% n/a n/a n/a 4.89 %
WRL GE U.S. Equity 01/02/1997 14.30 % n/a n/a n/a 22.40 %
WRL Third Avenue Value 01/02/1998 (6.24)% n/a n/a n/a (7.49)%
WRL J.P. Morgan Real Estate Securities 05/01/1998 (15.83)% n/a n/a n/a (15.69)%
WRL Goldman Sachs Growth* 05/03/1999 n/a n/a n/a n/a (2.63)%
WRL Goldman Sachs Small Cap* 05/03/1999 n/a n/a n/a n/a 0.77 %
WRL T. Rowe Price Dividend Growth* 05/03/1999 n/a n/a n/a n/a (5.62)%
WRL T. Rowe Price Small Cap* 05/03/1999 n/a n/a n/a n/a 5.76 %
WRL Salomon All Cap* 05/03/1999 n/a n/a n/a n/a 1.27 %
WRL Pilgrim Baxter Mid Cap Growth* 05/03/1999 n/a n/a n/a n/a 4.66 %
WRL Dreyfus Mid Cap* 05/03/1999 n/a n/a n/a n/a (1.03)%
</TABLE>
* Not annualized.
The total returns are based on the Sub-Accounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Sub-Account will fluctuate so that a Contract, when surrendered, may
be worth more or less than the amount of its purchase payments.
The foregoing figures set forth the historical total returns of the
Sub-Accounts calculated as described in the current prospectus for the
Contract. The calculations set forth assume a hypothetical amount held in a
Sub-Account for a Contract for various periods of time shown. Each period of
time ends at June 30, 1999.
All calculations reflect the mortality and expense risk charge and
administrative charge as charged to the Contract during the accumulation
period. They do not reflect any applicable premium taxes. The "returns" assume
a $ 30 annual Contract charge and a complete surrender as of the end of the
period and deduction of the withdrawal charge. This Contract has a five year
declining withdrawal charge which is initially a maximum of 6 % of the amount
of the purchase payment surrendered or withdrawn.
This information must be preceded or accompanied by currently effective
prospectuses for WRL Freedom Attainer/registered trademark/ Variable Annuity
and WRL Series Fund, Inc. Read the prospectuses carefully before investing.
This contract has limitations. For costs and complete details of the coverage,
contact Western Reserve Life Assurance Co. of Ohio.
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE 1
<PAGE>
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
WRL FREEDOM BELLWETHER/registered trademark/ VARIABLE ANNUITY
AT JUNE 30, 1999
<TABLE>
<CAPTION>
INCEPTION
SUB-ACCOUNT DATE
<S> <C>
WRL J.P. Morgan Money Market 12/03/1992
WRL AEGON Bond 12/03/1992
WRL Janus Growth 12/03/1992
WRL Janus Global 12/03/1992
WRL LKCM Strategic Total Return 03/01/1993
WRL VKAM Emerging Growth 03/01/1993
WRL Alger Aggressive Growth 03/01/1994
WRL AEGON Balanced 03/01/1994
WRL Federated Growth & Income 03/01/1994
WRL Dean Asset Allocation 01/03/1995
WRL C.A.S.E. Growth 05/01/1996
WRL NWQ Value Equity 05/01/1996
WRL GE/Scottish Equitable International Equity 01/02/1997
WRL GE U.S. Equity 01/02/1997
WRL Third Avenue Value 01/02/1998
WRL J.P. Morgan Real Estate Securities 05/01/1998
WRL Goldman Sachs Growth* 05/03/1999
WRL Goldman Sachs Small Cap* 05/03/1999
WRL T. Rowe Price Dividend Growth* 05/03/1999
WRL T. Rowe Price Small Cap* 05/03/1999
WRL Salomon All Cap* 05/03/1999
WRL Pilgrim Baxter Mid Cap Growth* 05/03/1999
WRL Dreyfus Mid Cap* 05/03/1999
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
ONE THREE FIVE SINCE
SUB-ACCOUNT YEAR YEARS YEARS INCEPTION
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 3.44 % 3.66 % 3.62 % 3.02 %
WRL AEGON Bond 0.94 % 5.18 % 5.91 % 5.21 %
WRL Janus Growth 42.65 % 31.42 % 30.84 % 21.41 %
WRL Janus Global 13.21 % 21.39 % 21.86 % 20.83 %
WRL LKCM Strategic Total Return 8.20 % 13.68 % 14.75 % 12.56 %
WRL VKAM Emerging Growth 33.63 % 24.83 % 28.18 % 23.10 %
WRL Alger Aggressive Growth 35.33 % 29.56 % 27.54 % 23.20 %
WRL AEGON Balanced 7.81 % 11.05 % 9.76 % 8.58 %
WRL Federated Growth & Income 3.53 % 10.71 % 11.85 % 9.77 %
WRL Dean Asset Allocation 0.99 % 10.20 % n/a 11.80 %
WRL C.A.S.E. Growth 22.19 % 16.23 % n/a 14.83 %
WRL NWQ Value Equity 4.73 % 14.93 % n/a 14.32 %
WRL GE/Scottish Equitable International Equity (4.59)% n/a n/a 6.97 %
WRL GE U.S. Equity 20.17 % n/a n/a 24.00 %
WRL Third Avenue Value (0.36)% n/a n/a (3.46)%
WRL J.P. Morgan Real Estate Securities (9.94)% n/a n/a (10.51)%
WRL Goldman Sachs Growth* n/a n/a n/a 3.35 %
WRL Goldman Sachs Small Cap* n/a n/a n/a 6.75 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a 0.36 %
WRL T. Rowe Price Small Cap* n/a n/a n/a 11.73 %
WRL Salomon All Cap* n/a n/a n/a 7.24 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 10.64 %
WRL Dreyfus Mid Cap* n/a n/a n/a 4.95 %
</TABLE>
* Not annualized.
The total returns are based on the Sub-Accounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Sub-Account will fluctuate so that a Contract, when surrendered, may
be worth more or less than the amount of its purchase payments.
The foregoing figures set forth the historical total returns of the
Sub-Accounts calculated as described in the current prospectus for the
Contract. The calculations set forth assume a hypothetical amount held in a
Sub-Account for a Contract for various periods of time shown. Each period of
time ends at June 30, 1999.
All calculations reflect the mortality and expense risk charge and
administrative charge as charged to the Contract during the accumulation
period. They do not reflect any applicable premium taxes. The "returns" assume
a $ 30 annual Contract charge.
This information must be preceded or accompanied by currently effective
prospectuses for WRL Freedom Bellwether/registered trademark/ Variable Annuity
and WRL Series Fund, Inc. Read the prospectuses carefully before investing.
This contract has limitations. For costs and complete details of the coverage,
contact Western Reserve Life Assurance Co. of Ohio.
2 WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
<PAGE>
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
WRL FREEDOM CONQUEROR/registered trademark/ VARIABLE ANNUITY
AT JUNE 30, 1999
<TABLE>
<CAPTION>
INCEPTION
SUB-ACCOUNT DATE
<S> <C>
WRL J.P. Morgan Money Market 12/03/1992
WRL AEGON Bond 12/03/1992
WRL Janus Growth 12/03/1992
WRL Janus Global 12/03/1992
WRL LKCM Strategic Total Return 03/01/1993
WRL VKAM Emerging Growth 03/01/1993
WRL Alger Aggressive Growth 03/01/1994
WRL AEGON Balanced 03/01/1994
WRL Federated Growth & Income 03/01/1994
WRL Dean Asset Allocation 01/03/1995
WRL C.A.S.E. Growth 05/01/1996
WRL NWQ Value Equity 05/01/1996
WRL GE/Scottish Equitable International Equity 01/02/1997
WRL GE U.S. Equity 01/02/1997
WRL Third Avenue Value 01/02/1998
WRL J.P. Morgan Real Estate Securities 05/01/1998
WRL Goldman Sachs Growth* 05/03/1999
WRL Goldman Sachs Small Cap* 05/03/1999
WRL T. Rowe Price Dividend Growth* 05/03/1999
WRL T. Rowe Price Small Cap* 05/03/1999
WRL Salomon All Cap* 05/03/1999
WRL Pilgrim Baxter Mid Cap Growth* 05/03/1999
WRL Dreyfus Mid Cap* 05/03/1999
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
ONE THREE FIVE SINCE
SUB-ACCOUNT YEAR YEARS YEARS INCEPTION
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (4.62)% 1.72 % 2.87 % 2.59 %
WRL AEGON Bond (7.13)% 3.28 % 5.22 % 4.82 %
WRL Janus Growth 34.52 % 30.19 % 30.54 % 21.23 %
WRL Janus Global 5.07 % 19.94 % 21.45 % 20.64 %
WRL LKCM Strategic Total Return 0.11 % 12.05 % 14.25 % 12.27 %
WRL VKAM Emerging Growth 25.49 % 23.46 % 27.85 % 22.92 %
WRL Alger Aggressive Growth 27.35 % 28.33 % 27.22 % 22.86 %
WRL AEGON Balanced (0.25)% 9.35 % 9.17 % 8.00 %
WRL Federated Growth & Income (4.54)% 9.00 % 11.30 % 9.22 %
WRL Dean Asset Allocation (7.08)% 8.48 % n/a 10.99 %
WRL C.A.S.E. Growth 14.13 % 14.69 % n/a 13.36 %
WRL NWQ Value Equity (3.33)% 13.35 % n/a 12.83 %
WRL GE/Scottish Equitable International Equity (12.64)% n/a n/a 4.34 %
WRL GE U.S. Equity 12.10 % n/a n/a 21.90 %
WRL Third Avenue Value (8.40)% n/a n/a (9.05)%
WRL J.P. Morgan Real Estate Securities (17.98)% n/a n/a (17.62)%
WRL Goldman Sachs Growth* n/a n/a n/a (4.65)%
WRL Goldman Sachs Small Cap* n/a n/a n/a (1.26)%
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (7.65)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 3.73 %
WRL Salomon All Cap* n/a n/a n/a (0.76)%
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 2.63 %
WRL Dreyfus Mid Cap* n/a n/a n/a (3.06)%
</TABLE>
* Not annualized.
The total returns are based on the Sub-Accounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Sub-Account will fluctuate so that a Contract, when surrendered, may
be worth more or less than the amount of its purchase payments.
The foregoing figures set forth the historical total returns of the
Sub-Accounts calculated as described in the current prospectus for the
Contract. The calculations set forth assume a hypothetical amount held in a
Sub-Account for a Contract for various periods of time shown. Each period of
time ends at June 30, 1999.
All calculations reflect the mortality and expense risk charge and
administrative charge as charged to the Contract during the accumulation
period. They do not reflect any applicable premium taxes. The "returns" assume
a $ 35 annual Contract charge and a complete surrender as of the end of the
period and deduction of the withdrawal charge. This Contract has a seven year
declining withdrawal charge which is initially a maximum of 8 % of the amount
of the purchase payment surrendered or withdrawn.
This information must be preceded or accompanied by currently effective
prospectuses for WRL Freedom Conqueror/registered trademark/ Variable Annuity
and WRL Series Fund, Inc. Read the prospectuses carefully before investing.
This contract has limitations. For costs and complete details of the coverage,
contact Western Reserve Life Assurance Co. of Ohio.
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE 3
<PAGE>
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
WRL FREEDOM WEALTH CREATOR/registered trademark/ VARIABLE ANNUITY
AT JUNE 30, 1999
<TABLE>
<CAPTION>
INCEPTION
SUB-ACCOUNT DATE
<S> <C>
WRL J.P. Morgan Money Market 12/03/1992
WRL AEGON Bond 12/03/1992
WRL Janus Growth 12/03/1992
WRL Janus Global 12/03/1992
WRL LKCM Strategic Total Return 03/01/1993
WRL VKAM Emerging Growth 03/01/1993
WRL Alger Aggressive Growth 03/01/1994
WRL AEGON Balanced 03/01/1994
WRL Federated Growth & Income 03/01/1994
WRL Dean Asset Allocation 01/03/1995
WRL C.A.S.E. Growth 05/01/1996
WRL NWQ Value Equity 05/01/1996
WRL GE/Scottish Equitable International Equity 01/02/1997
WRL GE U.S. Equity 01/02/1997
WRL Third Avenue Value 01/02/1998
WRL J.P. Morgan Real Estate Securities 05/01/1998
WRL Goldman Sachs Growth* 05/03/1999
WRL Goldman Sachs Small Cap* 05/03/1999
WRL T. Rowe Price Dividend Growth* 05/03/1999
WRL T. Rowe Price Small Cap* 05/03/1999
WRL Salomon All Cap* 05/03/1999
WRL Pilgrim Baxter Mid Cap Growth* 05/03/1999
WRL Dreyfus Mid Cap* 05/03/1999
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
ONE THREE FIVE SINCE
SUB-ACCOUNT YEAR YEARS YEARS INCEPTION
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (4.65)% 1.69 % 2.84 % 2.69 %
WRL AEGON Bond (7.17)% 3.25 % 5.19 % 4.91 %
WRL Janus Growth 34.43 % 30.15 % 30.52 % 21.27 %
WRL Janus Global 4.99 % 19.89 % 21.42 % 20.67 %
WRL LKCM Strategic Total Return 0.06 % 12.01 % 14.22 % 12.33 %
WRL VKAM Emerging Growth 25.40 % 23.41 % 27.83 % 22.95 %
WRL Alger Aggressive Growth 27.14 % 28.27 % 27.19 % 22.92 %
WRL AEGON Balanced (0.30)% 9.32 % 9.14 % 8.11 %
WRL Federated Growth & Income (4.59)% 8.97 % 11.28 % 9.33 %
WRL Dean Asset Allocation (7.13)% 8.44 % n/a 11.12 %
WRL C.A.S.E. Growth 14.09 % 14.66 % n/a 13.58 %
WRL NWQ Value Equity (3.36)% 13.33 % n/a 13.05 %
WRL GE/Scottish Equitable International Equity (12.67)% n/a n/a 4.69 %
WRL GE U.S. Equity 12.06 % n/a n/a 22.17 %
WRL Third Avenue Value (8.43)% n/a n/a (8.37)%
WRL J.P. Morgan Real Estate Securities (18.00)% n/a n/a (16.75)%
WRL Goldman Sachs Growth* n/a n/a n/a (4.66)%
WRL Goldman Sachs Small Cap* n/a n/a n/a (1.27)%
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (7.65)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 3.72 %
WRL Salomon All Cap* n/a n/a n/a (0.77)%
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 2.62 %
WRL Dreyfus Mid Cap* n/a n/a n/a (3.06)%
</TABLE>
* Not annualized.
The total returns are based on the Sub-Accounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Sub-Account will fluctuate so that a Contract, when surrendered, may
be worth more or less than the amount of its purchase payments.
The foregoing figures set forth the historical total returns of the
Sub-Accounts calculated as described in the current prospectus for the
Contract. The calculations set forth assume a hypothetical amount held in a
Sub-Account for a Contract for various periods of time shown. Each period of
time ends at June 30, 1999.
All calculations reflect the mortality and expense risk charge and
administrative charge as charged to the Contract during the accumulation
period. They do not reflect any applicable premium taxes. The "returns" assume
a $ 35 annual Contract charge and a complete surrender as of the end of the
period and deduction of the withdrawal charge. This Contract has a seven year
declining withdrawal charge which is initially a maximum of 8 % of the amount
of the purchase payment surrendered or withdrawn.
This information must be preceded or accompanied by currently effective
prospectuses for WRL Freedom Wealth Creator/registered trademark/ Variable
Annuity and WRL Series Fund, Inc. Read the prospectuses carefully before
investing. This contract has limitations. For costs and complete details of the
coverage, contact Western Reserve Life Assurance Co. of Ohio.
4 WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
<PAGE>
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE
WRL SERIES LIFE ACCOUNT
AT JUNE 30, 1999
<TABLE>
<CAPTION>
INCEPTION
SUB-ACCOUNT** DATE
<S> <C>
WRL J.P. Morgan Money Market 10/02/1986
WRL AEGON Bond 10/02/1986
WRL Janus Growth 10/02/1986
WRL Janus Global 03/01/1994
WRL LKCM Strategic Total Return 03/01/1993
WRL VKAM Emerging Growth 03/01/1993
WRL Alger Aggressive Growth 03/01/1994
WRL AEGON Balanced 03/01/1994
WRL Federated Growth & Income 03/01/1994
WRL Dean Asset Allocation 01/03/1995
WRL C.A.S.E. Growth 05/01/1996
WRL NWQ Value Equity 05/01/1996
WRL GE/Scottish Equitable International Equity 01/02/1997
WRL GE U.S. Equity 01/02/1997
WRL Third Avenue Value 01/02/1998
WRL J.P. Morgan Real Estate Securities * 05/01/1998
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
ONE THREE FIVE TEN SINCE
SUB-ACCOUNT** YEAR YEARS YEARS YEARS INCEPTION
<S> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 3.99 % 4.22 % 4.17 % 3.98 % 4.31 %
WRL AEGON Bond 1.49 % 5.74 % 6.47 % 6.77 % 6.45 %
WRL Janus Growth 43.45 % 32.11 % 31.52 % 20.85 % 20.67 %
WRL Janus Global 13.87 % 22.05 % 22.50 % n/a 19.63 %
WRL LKCM Strategic Total Return 8.80 % 14.30 % 15.36 % n/a 13.12 %
WRL VKAM Emerging Growth 34.38 % 25.50 % 28.85 % n/a 23.71 %
WRL Alger Aggressive Growth 36.08 % 30.25 % 28.20 % n/a 23.80 %
WRL AEGON Balanced 8.39 % 11.64 % 10.34 % n/a 9.12 %
WRL Federated Growth & Income 4.09 % 11.30 % 12.44 % n/a 10.32 %
WRL Dean Asset Allocation 1.54 % 10.79 % n/a n/a 12.39 %
WRL C.A.S.E. Growth 22.84 % 16.84 % n/a n/a 15.41 %
WRL NWQ Value Equity 5.30 % 15.54 % n/a n/a 14.90 %
WRL GE/Scottish Equitable International Equity (4.08)% n/a n/a n/a 7.54 %
WRL GE U.S. Equity 20.81 % n/a n/a n/a 24.66 %
WRL Third Avenue Value 0.16 % n/a n/a n/a (2.95)%
WRL J.P. Morgan Real Estate Securities * (9.46)% n/a n/a n/a (10.00)%
</TABLE>
* WRL J.P. Morgan Real Estate Securities is not available in the WRL Freedom
Wealth Protector/registered trademark/.
** WRL Goldman Sachs Growth, WRL Goldman Sachs Small Cap, WRL T. Rowe Price
Dividend Growth, WRL T. Rowe Price Small Cap, WRL Salomon All Cap, WRL
Pilgrim Baxter Mid Cap Growth and WRL Dreyfus Mid Cap were not available
until 07/01/1999, therefore their performance history is not included.
WRL Series Life Account is the underlying investment vehicle for the
Sub-Accounts funding the variable universal life insurance products of Western
Reserve Life Assurance Co. of Ohio. The returns for each Sub-Account reflect
deductions for the policy's mortality and expense risk charge and investment
advisory fees. Please note that past performance is no guarantee of future
performance. Total return and principal value of a Sub-Account will fluctuate
so that an Owner's units, when redeemed, may be worth more or less than their
original cost.
Please refer to the hypothetical illustrations in the prospectus which show the
effect on performance of all charges that may apply to a policy. You may wish
to obtain a personalized illustration which reflects all the charges that apply
to a policy.
This information must be preceded or accompanied by a currently effective
prospectus for WRL Freedom Equity Protector/registered trademark/, WRL Freedom
Wealth Protector/registered trademark/, WRL Freedom Elite/SM/ or WRL Financial
Freedom Builder/registered trademark/, and WRL Series Fund, Inc. Read the
prospectuses carefully before investing. This policy has limitations. For costs
and complete details of the coverage, contact Western Reserve Life Assurance
Co. of Ohio.
WRL QUARTERLY SUB-ACCOUNT PERFORMANCE 5
