WRL SERIES FUND, INC.
ANNUAL REPORT DECEMBER 31, 1999
February 2000
ACC00001-2/00
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TABLE OF CONTENTS
<TABLE>
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WRL SERIES FUND, INC.
<S> <C> <C>
Chairman's Letter ............................................ 2
Report of Independent Certified Public Accountants ........... 3
PORTFOLIO SCHEDULE
MANAGER'S OF
COMMENTARY INVESTMENTS
---------- -----------
Portfolio:
====================================================
WRL J.P. Morgan Money Market ..................... 4 50
WRL AEGON Bond ................................... 6 52
WRL Janus Growth ................................. 8 54
WRL Janus Global ................................. 10 56
WRL LKCM Strategic Total Return .................. 12 59
WRL VKAM Emerging Growth ......................... 14 62
WRL Alger Aggressive Growth ...................... 16 65
WRL AEGON Balanced ............................... 18 67
WRL Federated Growth & Income .................... 20 69
WRL Dean Asset Allocation ........................ 22 71
WRL C.A.S.E. Growth .............................. 24 73
WRL NWQ Value Equity ............................. 26 74
WRL GE/Scottish Equitable International Equity ... 28 76
WRL GE U.S. Equity ............................... 30 80
WRL Third Avenue Value ........................... 32 83
WRL J.P. Morgan Real Estate Securities ........... 34 84
WRL Goldman Sachs Growth ......................... 36 85
WRL Goldman Sachs Small Cap ...................... 38 88
WRL T. Rowe Price Dividend Growth ................ 40 96
WRL T. Rowe Price Small Cap ...................... 42 99
WRL Salomon All Cap .............................. 44 105
WRL Pilgrim Baxter Mid Cap Growth ................ 46 107
WRL Dreyfus Mid Cap .............................. 48 109
Statements of Assets and Liabilities ......................... 112
Statements of Operations ..................................... 118
Statements of Changes in Net Assets .......................... 124
Financial Highlights ......................................... 131
Notes to the Financial Statements ............................ 140
</TABLE>
The Portfolios of the WRL Series Fund, Inc. are made available through variable
life insurance, variable annuity, and group annuity products. The availability
of certain Portfolios may vary from product to product.
1999 ANNUAL REPORT 1
<PAGE>
FELLOW CONTRACT AND POLICY OWNERS:
OF PAST PERFORMANCE...AND FUTURE RESULTS.
Though they said it wouldn't be done this year, stocks knocked the top off of a
few records. Demolished them in fact. And though they said it couldn't be done
this year, the market's favorite benchmarks - the Dow Jones Industrial Average
and the Standard and Poor's Index of 500 Common Stocks - completed their fifth
straight year each with double-digit returns. And though they said it shouldn't
be done in this year, the NASDAQ Composite Index finished 1999 with an
unheard-of gain of 85 %, more than half of it coming in the last two months.
Never before has a major index posted such numbers in a single year. Never
before have so many prognosticators been so wrong about so much. Then again,
never before has the world undergone such a powerful shift in the way it does
business.
Indeed, the revolution in technology is changing the world in ways even more
profound than railroads and steel did decades ago. Today, the fifteen largest
technology companies in the market are worth more than the entire market a
decade ago. It is different this time. The microchip has ushered in a new age --
an era magnificently symbolized by the Internet -- that's rewriting the rules
for both the economy and the stock market. Its a brave new investment world
order and it's still in its infancy.
Along the way, equities have broken all historic valuation records compared to
traditional benchmarks, not terribly surprising given investors' confidence in
the future. Stocks with the greatest perceived exposure to that future have
benefited enormously and disproportionately, especially across the last year. As
a result, the disparity in performance between the "growth" and "value" styles
of investing reached levels never before seen in the marketplace.
That unevenness is readily apparent in the results of the WRL Series Fund, Inc.
portfolios. Hiding in plain sight, however, is the unwavering commitment of all
the portfolio managers to their stated and specific objectives. We invite you to
examine their individual comments contained in this report. Understanding how
these capable professionals dealt with rapidly changing and top heavy markets
can only make it easier for you to stick to your own investment plan.
From here, the question might be, "How high is up?" Though any number of usually
self-described experts will tell you they have the answer, the fact remains, no
one really has a clue. There is simply no way to predict with any assurance how
the market and its various components will act over the near term. Lest we
forget, it's entirely possible for every asset in a portfolio to decline over a
short period.
But it is possible to draw upon recent history to presume a longer view of the
future. Take demographics. As 80 million or so baby boomers retire, they will
continue to drive the economy. Their consumption of medical and financial
services will rise as they seek to protect their wealth from the scourge of
inflation. And there's another wave right behind them -- genX-ers and their kids
who've been conditioned to invest in stocks. And just as unstoppable as these
generational forces are, so is the breakneck pace of technological innovation.
Right now the Internet economy is growing at 14 times the pace of the overall
economy. Simply put, more business can get done. That's economic growth.
Nevertheless, we recognize that sharp, short-term reversals in confidence happen
abruptly, most often with little advance notice, and we all need to expect the
unexpected. It's the price we pay for the long-term wealth we gain. In this new
era, investment success will require a solid plan on your part and well-managed
products on ours. Your personal task of financial planning has never been
greater. We appreciate the opportunity to help.
Sincerely yours,
/s/ JOHN R. KENNEY
- ------------------
John R. Kenney
Chairman of the Board
The microchip has ushered in
a new age that's rewriting the rules for both the economy
and the stock market.
2 WRL Series Fund, Inc.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors and
Shareholders of the WRL Series Fund, Inc.
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of each
of the portfolios constituting the WRL Series Fund, Inc. (hereafter
referred to as the "Fund") at December 31, 1999, the results of each of
their operations, the changes in each of their net assets and financial
highlights for each of the periods indicated, in conformity with
accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at December 31,
1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/ PRICEWATERHOUSECOOPERS LLP
---------------------------------
PricewaterhouseCoopers LLP
Tampa, Florida
January 28, 2000
1999 ANNUAL REPORT 3
<PAGE>
WRL J.P. Morgan Money Market
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS MAXIMUM CURRENT INCOME CONSISTENT WITH PRESERVATION OF CAPITAL AND
MAINTENANCE OF LIQUIDITY.
MARKET ENVIRONMENT
The disinflationary forces brought on by last fall's economic crisis in the
global markets receded this period, allowing the Federal Reserve Board ("Fed")
to focus on growth at home. The Fed raised rates three times this year -- at its
June, August, and November meetings -- taking back all of last year's easings
and returning the fed funds rate back to 5.50 %. Although inflation has remained
benign and wage pressures are still subdued, the Fed has embarked on a path of
incremental tightening in a proactive attempt to keep inflation at bay. At
mid-year, when the Fed began tightening, credit and swap spreads widened while
the equity market tumbled. Since October, however, spreads have narrowed and the
equity market has rebounded, mostly due to the Fed's adoption of a neutral
stance. The year finished with higher yields due to the lingering probability of
additional Fed action, global synchronized growth, and uncertainty about when
the previous moves will begin to slow U.S. growth.
PERFORMANCE
When the Fed started tightening in June, portfolio management initiated a
barbell strategy, investing at the very short end of the curve for liquidity
while at the same time investing farther out the curve (though still less than
one-year) to capture higher yields. The portfolio's average maturity is
currently at 55 days. Significant allocation to floating-rate notes also added
to performance. These securities reset regularly (usually quarterly), therefore
the portfolio should benefit in a rising rate environment.
Conversely, the need to maintain liquidity by investing a large percentage of
the portfolio in overnight maturing securities to prepare for the unforeseen Y2K
events had a negative impact on performance. Investor caution and the
accommodative measures of the Fed resulted in a flood of cash into money market
instruments, driving short-term yields down dramatically in the last week of
December. Money market rates into early January traded as low as 2 % for fed
funds and below 1.5 % for agency issuance.
OUTLOOK
We expect the rising rate environment to continue, with a 25-basis point
hike from the Fed at its February meeting. Eventually, these incremental steps
will bring about the desired slow down and "soft landing." We think that the
current strength in oil prices will translate into increasing headline inflation
as early as the first quarter of 2000. We believe global growth will also
continue its positive trend which will have implications down the road for U.S.
assets as other countries' assets become more attractive on a relative value
basis. In the meantime, we will keep the portfolio barbelled to maintain
liquidity and seek higher yields.
/s/ JOHN T. DONOHUE /s/ MARK SETTLES
- ------------------- ----------------
John T. Donohue Mark Settles
WRL J.P. MORGAN MONEY MARKET
CO-PORTFOLIO MANAGERS
THE VIEWS EXPRESSED IN THIS PORTFOLIO MANAGER'S COMMENTARY REFLECT THOSE OF THE
PORTFOLIO MANAGEMENT THROUGH THE YEAR ENDED DECEMBER 31, 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.
<PAGE>
J.P. MORGAN
INVESTMENT
PORTFOLIO COMPOSITION 12/31/99
(INCLUDES 0.86 % OF OTHER ASSETS)
[PIE CHART]
FIVE LARGEST HOLDINGS (% OF NET ASSETS)
Freddie Mac 1.75 % 01/03/2000 23.71 %
Federal Home Loan Bank 1.50 % 01/03/2000 4.26 %
Federal Home Loan Bank 5.92 % 10/04/2000 3.49 %
Diageo PLC 6.05 % 08/24/2000 2.56 %
Comerica Incorporated 5.65 % 03/22/2000 2.33 %
MATURITY COMPOSITION 12/31/99
(ALL AMOUNTS IN THOUSANDS)
[BAR GRAPH]
WE EXPECT THE RISING RATE ENVIRONMENT TO CONTINUE, WITH A 25-BASIS POINT HIKE
FROM THE FED AT ITS FEBRUARY MEETING.
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 Annual Report 5
<PAGE>
WRL AEGON BOND
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS THE HIGHEST POSSIBLE CURRENT INCOME WITHIN THE CONFINES OF THE PRIMARY
GOAL OF ENSURING PROTECTION OF CAPITAL.
MARKET ENVIRONMENT
The year 1999 was the second worst for the bond market since 1973 (the worst
being 1994). Interest rates generally trended higher throughout the year,
increasing altogether by about 175 basis points, with more than half of the rise
occurring in the first six months of the year. The yield on the 10-year Treasury
ranged from 4.61 % to 6.44 % during 1999, ending the year at its high. Since
reaching their lows in October 1998, yields have risen to levels last seen in
mid-1997. The yield curve flattened across the year as the market began to
discount its expectations regarding Federal Reserve Board ("Fed") actions to
slow the economy and head off inflation. The fed funds target rate ultimately
reached 5.50 %, returning it to the level that existed prior to the
international crisis in the fall of 1998. Corporate bond spreads tightened
modestly during 1999, although there was a period of widening in the summer.
PERFORMANCE
For the year ended December 31, 1999, WRL AEGON Bond produced a return of
(2.94)%, just slightly lagging the benchmark index. The total return of the
general bond market as measured by the Lehman Brothers Government/Corporate Bond
Index was (2.l5)%.
STRATEGY REVIEW
The performance of the portfolio primarily reflects the neutral duration posture
to its benchmark through most of the year, therefore, largely avoiding a
negative relative impact from the rise in interest rates. Given the market
environment, however, our posture could have been more defensive. The portfolio
was the beneficiary of the historically high incremental yields and allocations
to the spread sectors, including corporate, asset-backed, and mortgage-backed
securities. The resulting contributions to the portfolio's performance were not
as strong as they could have been, however, given our emphasis on higher quality
issues within the corporate sector. After experiencing a positive impact from
security selection in the first half of the year, performance was hampered by
security selection in the last six months. Several holdings traded off, one
quite dramatically, on negative credit events and subsequent rating downgrades.
If we excluded the approximate impact from the one security that had the most
significant affect on performance, our estimated adjusted gross return would
have slightly exceeded that of the benchmark for the second half of the year.
OUTLOOK
A strong economy, increased inflationary pressures, and foreign bond markets in
congruence with the U.S. all continue to impact interest rate expectations.
While rates could continue to trend higher in the near term, we believe that the
Fed's vigilance on the inflation front is supportive for the market in the long
term. We are neutral to modestly negative on the bond market in the near term,
reflecting perceptions of both generally negative fundamentals and the technical
environment. In addition, we currently have a positive perspective on corporates
given their additional yield and historically attractive spread levels, but with
an emphasis on liquidity.
Both portfolio activity and portfolio structure will reflect our strategy and
market outlook. We continue to have a relatively large exposure to intermediate
maturities, as the average maturity of the portfolio remains shorter than its
benchmark. 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. While there is 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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
WHILE RATES COULD CONTINUE TO TREND HIGHER IN THE NEAR TERM, WE BELIEVE THAT THE
FED'S VIGILANCE ON THE INFLATION FRONT IS SUPPORTIVE FOR THE MARKET IN THE LONG
TERM.
* Inception 10/02/1986
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 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 6.33 %
U.S. Treasury Bond 7.25 % 05/15/2016 3.40 %
U.S. Treasury Note 5.75 % 10/31/2002 3.20 %
Federal Home
Loan Bank 5.50 % 08/13/2001 3.20 %
Fannie Mae 5.25 % 01/15/2003 3.13 %
FIXED INCOME MATRIX
[BOX CHART]
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 Annual Report 7
<PAGE>
WRL JANUS GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS GROWTH OF CAPITAL THROUGH INVESTMENTS IN COMMON STOCKS WITH SUPERIOR
EARNINGS GROWTH POTENTIAL.
MARKET ENVIRONMENT
With domestic markets registering exceptional gains across the period, the
Standard and Poor's Index of 500 Common Stocks ("S&P 500") closed out 1999 with
an unprecedented fifth straight year of 20 %-plus returns. While a persistent
rise in long-term interest rates incited substantial volatility at times, a
resurgent technology sector fueled the markets to new heights, especially during
the latter half of the year. In the end, the technology-laden NASDAQ Composite
Index climbed to record levels and ended the year well ahead of other
benchmarks. The continued strength in technology shares actually provided a
spark for several indexes, especially those of small and mid-sized stocks.
PERFORMANCE
Against this backdrop, WRL Janus Growth rose steadily throughout the year,
outperforming its benchmark by a considerable margin. For the year ended
December 31, 1999, the portfolio produced a total return of 59.67 % while the
S&P 500 gained 21.04 %. While we enjoyed broad-based gains across many of our
holdings, our technology, telecommunications, and media holdings were clear
standouts.
STRATEGY REVIEW
Our position in Cisco Systems, Inc. ("Cisco") led the portfolio's technology
winners, and we remain optimistic about the company's prospects. Cisco continues
to be the clear leader for switches and routers that power the backbone of the
Internet, commanding almost a 100 % market share in an arena that continues to
benefit from the Internet's proliferation. We also experienced robust gains from
Nokia Oyj, as the company solidified its position as the global leader for
wireless handsets. Investors grew increasingly excited about the prospects for
wireless data transmissions, which further supports an already compelling growth
picture. Additionally, our position in Texas Instruments Incorporated moved
ahead nicely. The company's digital signal processor chips will power roughly
two-thirds of the nearly 300 million mobile handsets sold in 1999, and this
trend should only increase.
Thanks to strong advertising revenues from "dot-com" companies and
millennium-related spending, our position in AT&T Corp. - Liberty Media Group
logged a solid gain. Investor appreciation of the cable industry's pending
introduction of video-on-demand provided an additional tailwind for these
positions, which rallied as the market came to recognize the rich value of their
respective media libraries. Our longtime holding in General Electric Company
also provided strong gains. The company recently announced a three-for-one stock
split and Jack Welch, its renowned CEO, blessed Wall Street's upbeat earnings
estimates for the coming year.
On the downside, we were disappointed with our grocery store holdings,
particularly The Kroger Co. ("Kroger"). While we were optimistic that the
company could reap tremendous cost savings from its recent acquisitions, we were
disappointed in Kroger's lackluster earnings growth. Without a clear catalyst to
drive future earnings, we opted to liquidate our position at a loss.
OUTLOOK
We remain completely focused on locating dynamic companies that can perform well
in any environment. By sifting through the data to track down critical
information that others may have overlooked, we build an information edge that
helps us invest confidently for the long term, regardless of where the markets
going.
/s/ SCOTT W. SCHOELZEL /s/ EDWARD 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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
WHILE WE ENJOYED BROAD-BASED GAINS ACROSS MANY OF OUR HOLDINGS, OUR TECHNOLOGY,
TELECOMMUNICATIONS, AND MEDIA HOLDINGS WERE CLEAR STANDOUTS.
* Inception 10/02/1986
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 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)
Nokia Oyj - Sponsored ADR 11.56 %
America Online, Inc. 7.29 %
Microsoft Corporation 7.28 %
Cisco Systems, Inc. 6.16 %
General Electric Company 3.93 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 16.92 %
Communications Equipment 12.63 %
Computer & Office Equipment 9.69 %
Telecommunications 9.52 %
Electronic Components & Accessories 6.11 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 9
<PAGE>
WRL JANUS GLOBAL
FOR THE YEAR ENDED DECEMBER 31, 1999
...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
Despite heightened volatility, international equity markets rallied across the
year, supported by global interest rate cuts and easing recession fears. While
U.S. equities led the way, stocks in Asia and Latin America showed renewed vigor
amid signs that the worst may be over for economies in those regions. European
markets, meanwhile, were volatile, struggling against slower economic growth and
pressure on the new euro currency. A recent European Central Bank interest rate
cut brightened the Continent's economic outlook, however, prompting investors to
revisit some economically sensitive stocks.
PERFORMANCE
For the year ended December 31, 1999, WRL Janus Global gained 71.10 %,
comfortably outperforming its benchmark, the Morgan Stanley Capital
International World Index, which returned 24.93 %. We attribute our strong
performance to our ability to find companies able to generate robust earnings in
a variety of economic conditions.
STRATEGY REVIEW
The portfolio continued to benefit from the decision we made last year to raise
our weighting in U.S. stocks. This strategy reflected our belief that U.S.
corporations are ahead of their international competitors in terms of cost
cutting and technological innovation. Companies such as networking equipment
provider Cisco Systems, Inc. and telecommunications powerhouse MCI WORLDCOM,
Inc., continued to reward our confidence with vigorous performance. Both are
leading franchises driving the changes that create value in their industries.
We continued to capitalize on the build-out of global broadband
telecommunication networks. Companies like Britain's Colt Telecom Group PLC and
Orange PLC are constructing new telecommunication networks that will allow users
to access voice, data, and Internet services over a single network.
The strategic value of cable franchises is another theme we are following
globally. Because cable companies have already installed interactive links into
consumer homes, they are seen as a vital link in the delivery of broadband
services. In many cases these companies are ahead of their U.S. counterparts in
upgrading their systems. We particularly like quality franchises like Canada's
Rogers Communications Inc. and Shaw Communications Inc. While the renewed
interest in more economically sensitive stocks benefited cyclical holdings like
automaker Porsche AG, it hindered the performance of more defensive positions,
most notably pharmaceutical stocks.
OUTLOOK
Overall, we are optimistic on the global economy. Modest inflation and lower
interest rates are expected to support moderate but continued growth in the U.S.
and Europe, while prospects for Asia and the emerging markets appear brighter
than they were six months ago. Given the fragility of these budding recoveries,
we remain cautious in our approach to investing in these regions. We will
continue to focus on companies that can generate strong results in any kind of
economic environment. These are the kind of opportunities we try to find for the
portfolio, relying on the expertise and rigorous efforts of our research team.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
THE PORTFOLIO CONTINUED TO BENEFIT FROM THE DECISION WE MADE LAST YEAR TO RAISE
OUR WEIGHTING IN U.S. STOCKS.
* Inception
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 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)
NTT Mobile Communication
Network, Inc. 6.85 %
Nokia Oyj 4.45 %
Cisco Systems, Inc. 4.15 %
China Telecom (Hong Kong)
Limited - ADR 3.87 %
Mannesmann AG 3.77 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 24.88 %
Communications Equipment 12.18 %
Computer & Data Processing Services 9.98 %
Computer & Office Equipment 8.51 %
Electronic Components & Accessories 4.46 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 11
<PAGE>
WRL LKCM STRATEGIC TOTAL RETURN
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS CURRENT INCOME, LONG-TERM GROWTH OF INCOME, AND CAPITAL APPRECIATION BY
INVESTING IN A BLEND OF EQUITY AND FIXED-INCOME SECURITIES.
MARKET ENVIRONMENT
The theme of equity investing in 1999 was growth, with that style outperforming
value by a historically wide margin. Major stock indexes advanced particularly
hard in the fourth quarter, led by the technology sector. The fact that stocks
continued to rise in the face of rising interest rates is an unusual situation.
Given the enormous outperformance by the technology sector, the overall stock
market continued to feel very narrow, with non-technology/non-high growth stocks
failing to keep up. Nevertheless, the portfolio's equity investments, which tend
to have a more muted risk profile than strictly high-growth stocks, performed
well.
PERFORMANCE
Given the portfolio's objective and asset allocation, we are enthusiastic about
its performance over the past year. For the year ended December 31, 1999, WRL
LKCM Strategic Total Return generated a total return of 12.07 %. By comparison,
Standard and Poor's Index of 500 Common Stocks gained 21.04 % and the Lehman
Brothers Government/Corporate Intermediate Bond Index returned 0.39 % for the
same period.
STRATEGY REVIEW
We remain dedicated to a strategic allocation of at least 60 % of assets in
common stocks as a means of providing long-term capital gains, with the balance
invested in a bond component to manage risk. The year was one of the most
difficult ever for bonds, yet a conservative and focused bond management
approach allowed the fixed-income portion to contribute positively to returns.
At the same time, the bond portion of the portfolio fulfilled its main function
of managing risk and limiting volatility by cushioning portfolio returns during
the third quarter's stock market downdraft. While managing overall risk remains
of paramount significance to our long-term success, equally important is
managing capital appreciation potential. In this regard, the portfolio's equity
investments had an excellent year while, taking on materially less risk, we
think, than the overall stock market.
The largest contributor to our solid performance was strong individual
investments. For instance, while we continued to have a below-market exposure to
the volatile technology sector, the strong performance of the portfolio's
technology holdings more than offset the impact of the lower weighting. The
suitability of the reward/risk profile of many technology stocks has always been
an issue for the portfolio. In late 1998, we identified several
communications-related technology shares that offered attractive capital
appreciation potential along with manageable risk profiles. Our biggest winners
in 1999 were among these investments and included Motorola, Inc. and Nortel
Networks Corporation. This strong stock selection extended throughout the
portfolio regardless of whether a sector was in or out of favor. Individual
contributors included CBS Corporation, The Home Depot, Inc., and Nabors
Industries, Inc.
OUTLOOK
We continue to be optimistic about the resilience of the U.S. financial markets
at a time of unprecedented economic expansion and technological innovation. But
while today's environment of growth and change provides wonderful investment
opportunities, the blemish of high valuations and rising interest rates is a
call for caution. Nevertheless, we continue to be excited about investment
opportunities available to the portfolio, believing its risk-averse philosophy
is especially well suited for the environment.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
STRONG STOCK SELECTION EXTENDED THROUGHOUT THE PORTFOLIO REGARDLESS OF WHETHER A
SECTOR WAS IN OR OUT OF FAVOR.
* Inception
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 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)
Nortel Networks Corporation 3.56 %
CBS Corporation 3.33 %
EMC Corporation 2.62 %
General Electric Company 2.58 %
ALLTEL Corporation 2.21 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 13.55 %
Commercial Banks 7.29 %
Chemicals & Allied Products 6.74 %
Computer & Office Equipment 5.85 %
Radio & Television Broadcasting 5.67 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
FIXED INCOME MATRIX
MATURITY
[BOX GRAPH]
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 Annual Report 13
<PAGE>
WRL VKAM EMERGING GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS CAPITAL APPRECIATION BY INVESTING IN THE COMMON STOCKS OF SMALL- AND
MEDIUM-SIZED COMPANIES.
MARKET ENVIRONMENT
Except for a second-quarter rally by value stocks, growth stocks led the market
all year. The fourth quarter turned out to be the single best quarter for the
portfolio ever. In fact, WRL VKAM Emerging Growth gained more in that one
quarter -- over 60 % -- than it had in any previous year. The best performing
group by far was technology, and due to the strong performance, the portfolio is
over-weighted in technology and technology-related industries. With no other
group showing up as well, technology finished the year still looking far and
away the best group under our stock selection criteria. This was a year just
like last year when the strong stocks stayed strong all year, while the weak
stocks stayed weak all year. In most years, more sector rotation normally
occurs.
PERFORMANCE
For the year ended December 31, 1999, WRL VKAM Emerging Growth rose 105.16 %,
widely outperforming its benchmark index, the Standard and Poor's Index of 500
Common Stocks, which gained 21.04 %. The portfolio benefited from its focus on
small- and mid-capitalization stocks, which generally fared better than larger
stocks in the growth segments of the market.
STRATEGY REVIEW
The portfolio utilizes a bottom-up approach that focuses on stock selection. The
style remains consistent in any market condition and the portfolio remains fully
invested. Stocks are selected based on two key criteria: rising earnings
expectations and improving valuations. To be added to the portfolio, stocks need
to meet both criteria. Positions are sold immediately if the company's earnings
expectations fall, and very quickly if the stock's valuation declines. Our
approach attempts to identify the best performing high-growth companies the
market is rewarding with a higher stock price. The biggest contributors to
performance during the year were QUALCOMM Incorporated, JDS Uniphase
Corporation, Veritas Software Corporation, Verisign, Inc., and Broadvision, Inc.
All of these stocks were among the biggest winners in the market this year. The
biggest negative contributors were Compuware Corporation, CSG Systems
International, Inc., American Power Conversion Corporation, USWeb Corporation,
and eBay, Inc. None of these stocks were in the portfolio at year end.
OUTLOOK
The market treats emerging growth stocks differently depending on the level of
uncertainty. When fear rises, the market seeks safe "haven stocks" and avoids
the type of stocks held in the portfolio. When confidence returns, however, the
market seeks the typically higher returns available from emerging growth
companies. Lately, emotional swings have been occurring at a seemingly
accelerated pace and that has enhanced market volatility. Emerging growth stock
valuations are currently near the bottom of their historic range (when compared
to larger companies) and they appear to be attracting market interest. With
growth stock fundamentals appearing positive, the market should continue its
incredible bull run, though there will be a few bumps along the way.
/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 YEAR ENDED DECEMBER 31, 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>
[VANKAMPEN 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
[MOUNTAIN GRAPH]
TECHNOLOGY FINISHED THE YEAR STILL LOOKING FAR AND AWAY THE BEST GROUP UNDER OUR
STOCK SELECTION CRITERIA.
* Inception
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 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)
QUALCOMM, Incorporated 4.96 %
JDS Uniphase Corporation 4.88 %
Veritas Software Corporation 3.45 %
Verisign, Inc. 3.09 %
Broadvision, Inc. 2.40 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 26.99 %
Electronic Components & Accessories 23.47 %
Communications Equipment 11.39 %
Telecommunications 4.98 %
Computer & Office Equipment 4.16 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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.
1999 Annual Report 15
<PAGE>
WRL ALGER AGGRESSIVE GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING IN EQUITY SECURITIES.
MARKET ENVIRONMENT
All together, 1999 was another good year for most equity investors. During the
first half of the year, large-cap stocks marched forward with hardly a setback,
while their smaller counterparts struggled mightily. Large inflows of overseas
capital sought refuge in the largest, most liquid corporate names. All of the
major large-cap indexes continuously set new highs, and the Dow Jones Industrial
Average ("Dow") closed over 10,000 for the first time on March 29, 1999.
After a volatile April, May and June saw consolidation and profit taking in the
equity markets. An ongoing fear of rising interest rates was realized on June
30, when the Federal Reserve Board ("Fed") "took back" one of three previous
interest rate cuts by increasing the fed funds rate to 5 %. Nonetheless, the
market shrugged off the rate hike, and large-cap stocks continued to rally.
During the last stages of this surge, however, the breadth of the rally narrowed
considerably, as small-cap and value stocks continued to languish.
The last few months of the period were marked by extreme market volatility, an
overall downward trend, and ultimately, a dramatic rebound. While certain
segments of the market struggled -- most notably, value stocks -- most equity
indexes climbed steadily higher. Small-cap growth stocks were particularly
strong, reversing a painfully long trend of underperformance. Growth stocks and
technology stocks across all market capitalizations appreciated strongly at
year-end.
PERFORMANCE
For the year ended December 31, 1999, WRL Alger Aggressive Growth returned
69.02 %, significantly outperforming both the Value Line (Arithmetic) Index
which gained 10.56 % and the Standard and Poor's Index of 500 Common Stocks
("S&P 500") which gained 21.04 %. Looking forward, we will continue to seek out
and invest in companies that we feel will increase their earnings rapidly and
consistently.
STRATEGY REVIEW
Fortunately, the portfolio was well positioned to benefit from the strong
performance of certain segments of the market. Firstly, our growth stock
philosophy was of great benefit during a year in which value severely
underperformed growth. In addition, the portfolio was heavily weighted in
technology companies throughout the year. Stocks such as Yahoo! Inc., Microsoft
Corporation, and America Online, Inc. fueled much of the portfolio's gains.
Technology stocks were the clear market leaders in 1999, thus making WRL Alger
Aggressive Growth extremely well positioned for the strong bull market.
OUTLOOK
The economy of 2000 is likely to resemble the economy of 1999, but it will not
be growing as rapidly. This is an inevitable by-product of higher interest
rates. Nevertheless, things like low unemployment, good wage gains, and positive
psychology should keep the economy moving along at a decent rate. Inflation will
remain subdued as a result of continually increasing productivity and the
slowing of economic growth. Corporate earnings, however, will probably not be as
strong in the coming year as they were in the past. The top-down forecast for
S&P 500 earnings is an increase of 10 %, which is lower than the 14 % estimated
for this year. It would be logical to assume that the market will rise less
vigorously as well. As such, a target of 12,500-13,000 on the Dow might be
appropriate.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
OUR GROWTH STOCK PHILOSOPHY WAS OF GREAT BENEFIT DURING A YEAR IN WHICH VALUE
SEVERELY UNDERPERFORMED GROWTH.
* Inception
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 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)
Yahoo! Inc. 7.07 %
Microsoft Corporation 4.68 %
Exodus Communications, Inc. 4.64 %
America Online, Inc. 4.19 %
Cisco Systems, Inc. 3.48 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 28.33 %
Electronic Components & Accessories 12.24 %
Telecommunications 8.41 %
Business Services 8.31 %
Computer & Office Equipment 7.20 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 17
<PAGE>
WRL AEGON BALANCED
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS PRESERVATION OF CAPITAL, REDUCED VOLATILITY, AND SUPERIOR LONG-TERM
RISK-ADJUSTED RETURNS BY INVESTING IN COMMON STOCKS, CONVERTIBLE SECURITIES, AND
U.S. TREASURIES.
MARKET ENVIRONMENT
Being a value manager in last year's decidedly growth market was difficult to
say the least. For instance, in the second half of the year, the Russell 1000
Value Index ("Value Index") was down some 6 % while the NASDAQ Composite Index
("NASDAQ") was up about 50 %; for the full year, the Value Index was up 7 % and
the NASDAQ was up 86 %. In this environment, it was difficult to stay with a
value discipline as our stock performance reflected this disparity between value
and growth. The portfolio also maintained close to a 30 % weighting in bonds.
The fixed income portion had a negative return for the year as the Federal
Reserve Board ("Fed") raised interest rates three times. In total, stocks in the
portfolio performed in line with the Value Index, but we were disappointed with
the performance of bonds.
PERFORMANCE
For the year ending December 31, 1999, WRL AEGON Balanced produced a total
return of 3.03 %. By comparison, the Standard and Poor's Index of 500 Common
Stocks gained 21.04 % and the Lehman Brothers Government/Corporate Intermediate
Bond Index returned 0.39 % for the same period.
STRATEGY REVIEW
The highlight for the year in the portfolio was Sun Microsystems, Inc. For the
year, the stock was up 262 % and ended as an over-weighted position. Other big
movers for the year were Wal-Mart Stores, Inc., Citigroup Inc., Hewlett-Packard
Company, General Electric Company, and American International Group, Inc. We
made a conscious decision, however, to keep weightings in check which meant we
trimmed those stocks that became a large percentage of the portfolio.
Unfortunately, in this environment letting stocks run and become larger and
larger weights was exactly what worked for the year. Going forward, we will
continue to stay with our value discipline and take gains where we feel the
valuation warrants it.
After a solid year in 1998, bonds had a difficult time in 1999. The yield on the
10-year U.S. Treasury Bond rose across the year from 4.65 % to 6.44 %, meaning
the price fell. The Fed tightened rates three times last year in an attempt to
slow down the economy and cool down some of the speculation in the stock market.
If the economy begins to show signs of inflation or the technology stocks
continue to soar, we feel there may be a couple more interest rate increases in
2000. As a result, we plan on reducing the average maturity in the bond portion
of the portfolio to decrease price volatility of changing interest rates.
We also made a slight shift in the fixed income portion of the portfolio. Given
the level of interest rates and the spreads between U.S. Treasuries and
corporate bonds, the portfolio's fixed income holdings has expanded to include
high quality corporate bonds and, to a lesser extent, government agencies. We do
not view this as a shift in style, but more active management.
OUTLOOK
Our outlook for 2000 remains cautious for bonds, but optimistic for stocks. We
believe that in 2000, the global economic expansion will continue and basic
material and capital goods will come back in favor, much like they did in April,
1999. Technology, meanwhile, like basic material and capital goods, will benefit
from economic expansion. We look back at 1999 and realize that, being value
managers, we missed some opportunities to be involved in the hot part of the
market. Looking forward, we realize that every discipline has its time. We feel
that by staying true to the value style, we will be rewarded in the long run.
/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 YEAR ENDED DECEMBER 31, 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>
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
[MOUNTAIN GRAPH]
WE WILL CONTINUE TO STAY WITH OUR VALUE DISCIPLINE AND TAKE GAINS WHERE WE FEEL
THE VALUATION WARRANTS IT.
* Inception
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 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)
Sun Microsystems, Inc. 8.57 %
Citigroup Inc. 4.15 %
American International Group, Inc. 3.99 %
U.S. Treasury Bond 11.25 % 02/15/2015 3.91 %
General Electric Company 3.71 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Office Equipment 17.73 %
U.S. Government Obligations 14.46 %
Commercial Banks 9.70 %
Pharmaceuticals 9.27 %
Insurance 6.47 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
FIXED INCOME MATRIX
MATURITY
[BOX GRAPH]
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 Annual Report 19
<PAGE>
[AEGON LOGO]
WRL FEDERATED GROWTH & INCOME
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS TOTAL RETURN BY INVESTING IN SECURITIES THAT HAVE DEFENSIVE
CHARACTERISTICS.
MARKET ENVIRONMENT
Across the year, especially the second half, the equity markets remained
volatile with leadership coming from just a small number of large growth stocks.
Though the major indexes were all up, the median stock in the overall market
actually fell during the year.
It was a difficult environment for value investing, particularly for the mid-cap
value stocks of WRL Federated Growth & Income. The market favored companies with
rapid growth or the prospect of rapid growth rather than income-oriented,
undervalued sectors such as real estate investment trusts ("REITs") and
utilities. Gas and electric utilities comprised approximately 33 % of total net
assets at year end, while REITs comprised approximately 19 %. Both the Standard
& Poor's Utilities Index and the Morgan Stanley REIT Index were down in the
second half of the year.
PERFORMANCE
For the year ended December 31, 1999, WRL Federated Growth & Income returned
(4.45)%. The Russell Midcap Value Index, meanwhile, returned (0.11)%, more in
line with the portfolio's performance. The Russell 3000 Index returned 19.43 %.
STRATEGY REVIEW
Our top performing stocks came from several sectors. Chicago Title Corporation,
an insurance company, moved ahead nicely on a takeover bid, while Gallagher
(Arthur J.) & Co., an insurance broker, was up on prospects for improved pricing
in its markets. K N Energy, Inc. moved ahead as new management rejuvenated the
company, and Sterling Software, Inc., our only technology holding, gained inside
a strong group (yet still has a relatively low price/earnings multiple). The
United Illuminating Company bucked the worst year on record for electric
utilities to turn in excellent gains.
The weakest performing stocks all had profit shortfalls. Pennzoil-Quaker State
Company and USEC Inc. fell on rising crude oil costs and falling prices for
enriched uranium, respectively. Other declining issues were Bob Evans Farms,
Inc., V.F. Corporation, Hillenbrand Industries, Inc., and Ralston Purina
Company.
The portfolio changes made this year significantly enhanced its diversification,
as all major industry sectors are now represented. Our favorite sectors remain
natural gas and REITs, especially apartments, offices, and industrial
facilities.
OUTLOOK
We're optimistic about the portfolio's prospects. Overall valuations are
excellent, with an average multiple of 12 times expected 1999 earnings, a 5.4 %
dividend yield, and a beta of only 0.45. WRL Federated Growth & Income's mid-cap
companies also offer takeover prospects given their moderate size, attractive
valuations, and strong cash flows. We think this portfolio is a fine place to be
after the unprecedented rise by the Standard and Poor's Index of 500 Common
Stocks and the large growth stocks that have dominated it, and because of the
likelihood that market conditions will be more challenging in the year ahead.
/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 YEAR ENDED DECEMBER 31, 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, THE RUSSELL MIDCAP VALUE INDEX AND THE RUSSELL
3000 INDEX.
[MOUNTAIN GRAPH]
THE PORTFOLIO CHANGES MADE THIS YEAR SIGNIFICANTLY ENHANCED ITS DIVERSIFICATION,
AS ALL MAJOR INDUSTRY SECTORS ARE NOW REPRESENTED.
* Inception
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 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 3.30 %
El Paso Energy Corp. 2.40 %
Ralston Purina Company 1.87 %
ProLogis Trust 1.77 %
Post Properties, Inc. 1.74 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Gas Production & Distribution 18.36 %
Holding & Other Investment Offices 15.23 %
Electric Services 5.58 %
Food & Kindred Products 5.22 %
Electric, Gas & Sanitary Services 5.13 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 21
<PAGE>
WRL DEAN ASSET ALLOCATION
FOR THE YEAR ENDED DECEMBER 31, 1999
...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
Virtually all of the major stock market indexes ended the year at all-time
highs. Fears that rising interest rates or the "Y2K bug" would hurt the U.S.
economy dissipated and investors focused on continuing economic prosperity, in
particular the promising opportunities made possible by the Internet. In that
environment, the NASDAQ Composite Index ("NASDAQ"), a market index dominated by
high-tech giants and Internet-related issues, increased by over 80 % during
1999. Many NASDAQ stocks (in particular, the so-called "dot-com" stocks) were
bid higher due to pure market euphoria, with comparatively little attention paid
to any traditional notion of a stock's underlying value.
The saying goes that "a rising tide lifts all boats", but not with last year's
market. In fact, more than half of the stocks in the Standard and Poor's Index
of 500 Common Stocks ("S&P 500") fell in price during the year. In other words,
an equally weighted portfolio of the S&P 500, i.e., a group chosen to represent
market leaders and financially stable operations, would have barely changed in
value during the bull run of 1999. Certainly, such a huge divergence in
performance has served to tempt impatient investors to chase after the NASDAQ
winners, no matter the price.
PERFORMANCE
Against this backdrop, WRL Dean Asset Allocation underperformed its benchmark
indexes. For the year ended December 31, 1999, the portfolio produced a return
of (5.64)%. By comparison, the S&P 500 rose 21.04 % while the Lehman Brothers
Government/Corporate Intermediate Bond Index increased by 0.39 %.
STRATEGY REVIEW
Our models, which were bearish through much of the year, actually improved
toward year end. In order to capitalize on this relatively optimistic outlook,
we boosted the portfolio's stock allocation north of the 60 % "neutral" level.
At year's end, the portfolio was 66 % invested in equities. A major area of
emphasis is the financial services sector, particularly banking operations and
providers of insurance and investment products. The majority of stocks in the
financial sector were beaten down by higher interest rates in 1999, but the
fundamental demand for financial products should grow steadily over the longer
term. Select consumer and industrial names were recently added, with a
preference for companies that are market leaders, boast proven track records,
and offer attractive valuations. At the same time, the allocation to
fixed-income securities was reduced significantly, to about 27 % by year end.
The action to sell bonds is intended to mute some of the effect of short-term
higher rates while we wait for interest rates to settle out later in 2000.
OUTLOOK
The portfolio's performance during 1999 reflected the difficulties of a "value"
investing philosophy in the recent market environment. Certainly, trends such as
the Internet and the globalization of the economy have had an impact on the art
and science of investing. Nevertheless, the cornerstone of our long-term
investment success has been a commitment to "value". We believe the companies
whose stocks we are buying are fundamentally positioned to succeed and thrive in
the new economy, yet are undervalued in a classic or relative sense, thereby
increasing the potential for capital gains.
/s/ JOHN C. RIAZZI
- ------------------
John C. Riazzi
WRL DEAN ASSET ALLOCATION
PORTFOLIO MANAGER
THE VIEWS EXPRESSED IN THIS PORTFOLIO MANAGER'S COMMENTARY REFLECT THOSE OF THE
PORTFOLIO MANAGER THROUGH THE YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
THE PORTFOLIO'S PERFORMANCE DURING 1999 REFLECTED THE DIFFICULTIES OF A "VALUE"
INVESTING PHILOSOPHY IN THE RECENT MARKET ENVIRONMENT.
* Inception
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 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)
Fannie Mae 4.17 %
New Plan Excel Realty
Trust, Inc. 7.40 % 09/15/2009 3.92 %
Household Finance
Corporation 6.00 % 05/01/2004 3.67 %
FleetBoston Financial Corp. 3.59 %
Summit Bancorp 3.51 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Commercial Banks 15.03 %
Holding & Other Investment Offices 5.29 %
Personal Credit Institutions 5.28 %
Telecommunications 5.25 %
Computer & Office Equipment 5.15 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
FIXED INCOME MATRIX
MATURITY
[BOX GRAPH]
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.
WRL Series Fund, Inc. 23
<PAGE>
WRL C.A.S.E. GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...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
Over the past twelve months, the market endured a broad-scaled correction that
spared only a small percentage of stocks outside the technology sector. With
economic expansion running into wage demand inflationary pressures, the Federal
Reserve Board was compelled to raise rates three times during the year. If
long-term rates push above the 7 % level, they will likely drain a large amount
of the capital out of the equities market and into bonds.
While economic cycles are supremely important, there are noteworthy market
influences afoot as well, not the least of which is that the "baby boomer"
generation has reached middle age. Put another way, the population bubble that
has pushed the market to valuations never imagined will begin to decline. Such a
trend would ordinarily cause both the economic expansion and the demand for
stocks to decline, but the globalization of the markets has opened the doors to
millions of new consumers. Unimpeded, this expansion could have a long-term
beneficial impact on the markets of near epic proportions.
PERFORMANCE
For the year ended December 31, 1999, WRL C.A.S.E. Growth returned 33.84 %
outperforming its benchmark, the Wilshire 5000 Index which gained 22.05 % over
the same period.
STRATEGY REVIEW
In mid-December, we significantly reduced the portfolio's overweighting in the
technology sector. In most instances, we accomplished the lower weighting by
simply realizing a portion of our gains in technology stocks and locking in the
profits. We are very sensitive to the fact that a stock like America Online,
Inc. is selling at extraordinary earnings multiples, while more traditional
growth stocks are trading at more normal levels. Many of the more glamorous
technology stocks seem priced for perfection. The slightest disappointment could
see these stocks decline by 25 % to 50 %.
OUTLOOK
From here, we believe the best strategy is to lower the overall risk exposure of
the portfolio by reducing the number of high-multiple holdings and replacing
them with stocks displaying above-average growth rates and strong underlying
fundamentals. We disagree with investors who seem to believe that the only way
to make money is by investing in high-priced, high-volume, high-momentum stocks.
If the forces of wage-push inflation and higher interest rates are somehow held
in check, and if consumer spending declines as expected, we would expect
something around a 15 % rise in corporate earnings. With that, we see the
potential for the Standard and Poor's Index of 500 Common Stocks to rise by 7 %
to 10 %. The market could be pushed even higher if the global economies improve.
/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 YEAR ENDED DECEMBER 31, 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. 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
[MOUNTAIN GRAPH]
FROM HERE, WE BELIEVE THE BEST STRATEGY IS TO LOWER THE OVERALL RISK EXPOSURE OF
THE PORTFOLIO BY REDUCING THE NUMBER OF HIGH-MULTIPLE HOLDINGS.
* Inception
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 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. 6.78 %
ADC Telecommunications, Incorporated 3.87 %
Abercrombie & Fitch Co. - Class A 3.85 %
Claire's Stores, Inc. 3.51 %
America Online, Inc. 3.46 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 13.87 %
Electronic Components & Accessories 11.45 %
Computer & Data Processing Services 9.21 %
Communications Equipment 8.78 %
Pharmaceuticals 7.62 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 25
<PAGE>
WRL NWQ VALUE EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS TO ACHIEVE MAXIMUM, CONSISTENT TOTAL RETURN WITH MINIMUM RISK TO
PRINCIPAL BY INVESTING IN COMMON STOCKS WITH ABOVE-AVERAGE STATISTICAL VALUE.
MARKET ENVIRONMENT
The year 1999 will be remembered as one of the most extraordinary -- and
abnormal -- periods in the history of the stock market. A strong market rotation
to value-oriented stocks in the second quarter paled in comparison to the
powerful explosion of technology and Internet-related stocks in the fourth. But
while technology soared, for some companies many-fold, the average stock had to
contend with the Federal Reserve Board's ("Fed") steady string of rate
tightenings. As a result, there were nearly as many stocks down within the
Standard and Poor's Index of 500 Common Stocks ("S&P 500") as there were up for
the year.
PERFORMANCE
Performance for WRL NWQ Value Equity reflects the divergence in returns between
value stocks and their growth counterparts, particularly those in the technology
sector. For the year ended December 31, 1999, the portfolio returned 7.95 %
compared to a gain of 21.04 % for its benchmark, the S&P 500. The portfolio did,
however, perform in line with the Russell 1000 Value Index, which was up 7.4 %
in 1999.
STRATEGY REVIEW
Since the Asian crisis derailed our long held export-oriented investment theme
in 1998, we've been adding consumer, airline, cable, and technology stocks to
the portfolio, including MediaOne Group Inc., the third largest U.S. cable
company. Its choice assets attracted AT&T Corp. - Liberty Media Group as a
merger partner at a very attractive price. Time Warner Inc., another cable/media
holding which didn't attract much attention in 1999, is in a similar position.
We held our positions in energy despite the sector falling very much out of
favor in 1998, believing strongly in the longer-term investment potential of the
group. The dramatic recovery of our three largest energy holdings, --
Weatherford International Inc., Noble Drilling Corporation, and Halliburton
Company -- reflects the turnaround potential for out of favor stocks. As a value
investor, our holdings are sometimes very much out of favor, just as energy was
in 1998. We believe superior performance comes from both early identification of
changes in economic or industry fundamentals, and being willing to show
conviction in those investments during a difficult environment like that of last
year.
OUTLOOK
We cannot say, of course, how long the current environment will persist -- some
have called the Internet investment mania one of the greatest "bubbles" of all
time. We do know, however, that the disparity between growth and value
investment styles has reached unprecedented levels. In the past 20 years, the
differential in return between the large capitalization Russell Growth Index and
Russell Value Index never exceeded 17 % in any single year until 1998, when it
surpassed 23 %. In 1999, this differential nearly reached 26 %. This growing
spread between investment styles is a result of investors changing attitude
toward risk, reflected in a new willingness to value a stock on a distant
potential instead of profits, cash flows, and dividends. Through late December,
companies within the S&P 500 reporting virtually no earnings were up an average
of 52 %, while those having profits lost 2 % on average.
Value investing is a lonely pursuit in today's markets, but purchasing
out-of-favor companies at prices well below their intrinsic value has proven to
be a rewarding long-term approach for decades. We believe it will remain so for
decades to come.
/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 YEAR ENDED DECEMBER 31, 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 INVESTMENT MANAGEMENT COMPANY 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
[MOUNTAIN GRAPH]
THIS GROWING SPREAD BETWEEN INVESTMENT STYLES IS A RESULT OF INVESTORS CHANGING
ATTITUDE TOWARD RISK.
* Inception
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 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)
MediaOne Group Inc. 4.63 %
CoreComm Limited 4.36 %
Halliburton Company 4.00 %
Texas Instruments Incorporated 3.97 %
Wells Fargo & Co. 3.93 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Commercial Banks 12.05 %
Telecommunications 11.30 %
Insurance 8.51 %
Industrial Machinery & Equipment 5.99 %
Computer & Office Equipment 4.35 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 27
<PAGE>
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN THE COMMON STOCK
OF FOREIGN ISSUERS TRADED ON OVERSEAS EXCHANGES.
MARKET ENVIRONMENT
Though global growth was strong during 1999, strength was far more evident in
some regions than in others. Asian markets provided most of the star performers,
with Malaysia, Singapore, Indonesia, and Korea all gaining more than 90 %. Hong
Kong rose by some 56 %. And after years in the doldrums, the Morgan Stanley
Capital International Japan Index was ahead by more than 60 % for the year.
Europe's major markets, on the other hand, were relatively disappointing. Gains
in the United Kingdom ("UK"), the Netherlands, and Spain were all in the single
digits, while markets in Italy and Belgium actually lost ground. Only the
Scandinavian markets were consistently strong, largely reflecting the importance
of the two giant telephone stocks, Finland's Nokia Oyj and Sweden's
Telefonaktiebolaget LM Ericsson.
PERFORMANCE
For the year ended December 31, 1999, WRL GE/Scottish Equitable International
Equity produced a total return of 24.95 %. By comparison, the Morgan Stanley
Capital International (EAFE) Index gained 28.24 % and the Morgan Stanley Capital
International World (excl. United States) Index rose 28.80 % for the same
period.
STRATEGY REVIEW
Early in the year, we adopted a generally defensive approach, favoring UK and
European markets over Japan and the Pacific. Overall, the defensive theme of the
portfolio had an adverse effect, with a resurgent global economy pushing
cyclical stocks to stronger performances than defensive issues. During
September, we moved to underweight the UK -- a decision reflecting interest rate
concerns and anxieties that any correction in the U.S. market would be amplified
on the other side of the Atlantic. After a poor first nine months, the portfolio
outperformed its benchmarks in the final quarter of 1999, largely on the back of
excellent fourth quarter performance from global technology stocks. Telecom
Italia SpA stocks, in particular, rose dramatically.
OUTLOOK
Recent economic indicators confirm an outlook of strong growth, exposing the
major economies to the risk of a pick-up in inflation. U.S. inflation data has
been better than expected, however, and the European Central Bank's move late in
the year to raise Euro short-term interest rates was seen as a move to preempt a
pick-up in inflation.
The uncertain outlook for inflation leads us to favor a broadly neutral asset
allocation relative to our benchmarks. European markets have been upgraded to
positive on the basis that the aforementioned rate rise should ensure a further
favorable period of economic stability. We remain negative on the UK market,
where interest rates are likely to rise and profits will be restrained by
limited productivity gains and by rising wage costs.
In Japan, profit growth will be good provided the economic recovery holds up,
and equity valuations do not look particularly stretched. It is unclear,
however, from where the buying required to drive the equity market higher will
come. We will continue to hold a benchmark weighting in Japan.
/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 YEAR ENDED DECEMBER 31, 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 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
[MOUNTAIN GRAPH]
THE UNCERTAIN OUTLOOK FOR INFLATION LEADS US TO FAVOR A BROADLY NEUTRAL ASSET
ALLOCATION RELATIVE TO OUR BENCHMARKS.
* Inception
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 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)
Mannesmann AG 3.27 %
Telefonaktiebolaget LM Ericsson -
Class B 2.68 %
Sonera Oyj 2.43 %
Total Fina SA 2.22 %
Nokia Oyj 2.03 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 12.62 %
Commercial Banks 9.86 %
Electronic Components & Accessories 8.48 %
Machinery, Equipment & Supplies 6.27 %
Communications Equipment 5.87 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 29
<PAGE>
WRL GE U.S. EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN EQUITY
SECURITIES.
MARKET ENVIRONMENT
The stock market's narrowness across the year combined with the unprecedented
dominance of growth over value made it very difficult to outperform on a
consistent basis. During the year, just four large-capitalization stocks
accounted for nearly a third of the Standard and Poor's Index of 500 Common
Stocks' ("S&P 500") gain. In similar fashion, the top 30 stocks accounted for
87 % of the index's total gain.
PERFORMANCE
For the year ended December 31, 1999, WRL GE U.S. Equity gained 18.41 %. By
comparison, the S&P 500, driven primarily by the technology sector, rose 21.04 %
for the same period.
STRATEGY REVIEW
For the period, we did well in the consumer cyclical sector, where we benefited
from continued outperformance by our cable holdings, NTL Incorporated, AT&T
Corp. - Liberty Media Group, and Comcast Corporation, as well as Interpublic
Group of Companies, Inc. and Catalina Marketing Corporation. We also
outperformed in the financial sector; brokerage firms Morgan Stanley Dean Witter
and Co. and The Goldman Sachs Group, Inc. did well, as did our large
overweighted position in Citigroup Inc. We also had good performance in the
capital goods sector, primarily because our valuation discipline kept us out of
Tyco International Ltd.
Technology again was the sector that provided us with the greatest investment
challenge. For the full year, our technology holdings rose pretty much in line
with the S&P 500 Technology Sector, but due to valuation concerns, we were
underweighted in the sector. During the fourth quarter we modestly reduced our
technology weightings as valuations on selected stocks got even more extended.
At the same time, large-cap, high-valuation technology stocks like QUALCOMM
Incorporated, and Yahoo! Inc. were being added to the S&P 500, resulting in even
more of a relative underweighting by year end. Our lack of exposure to
high-flyers like Oracle Corporation, America Online Inc., Motorola, Inc., and an
underweighting in Microsoft Corporation especially hurt relative performance,
while lower valuation technology stocks such as Equifax Inc., Pitney Bowes Inc.,
and Unisys Corporation simply underperformed. We did have several good
technology stocks -- Analog Devices, Inc., Applied Materials, Inc., EMC
Corporation, and Nortel Networks Corporation, for example -- we just didn't have
enough of them. We also had slightly negative performance in the consumer staple
group due to underperformance by several healthcare stocks, and in the energy
sector, mostly due to our overweighting. We still believe, however, that the
healthcare industry has a favorable long-term outlook, and that there are
compelling values within the energy sector.
OUTLOOK
Going forward, we expect stock market volatility to continue. We also believe
that the performance and valuation discrepancy between technology and almost
everything else cannot continue. Thus, we will maintain our focus on fundamental
research and stock selection, and plan to maintain the valuation discipline that
has rewarded us over the years. We believe the portfolio is well positioned for
good relative performance in this environment.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
WE DID HAVE SEVERAL GOOD TECHNOLOGY STOCKS, WE JUST DIDN'T HAVE ENOUGH OF THEM.
* Inception
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 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. 3.30 %
Microsoft Corporation 2.76 %
Cisco Systems, Inc. 2.75 %
Exxon Mobil Corporation 2.52 %
Intel Corporation 2.16 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Pharmaceuticals 10.10 %
Telecommunications 8.00 %
Computer & Office Equipment 7.82 %
Commercial Banks 6.50 %
Computer & Data Processing Services 5.77 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 31
<PAGE>
WRL THIRD AVENUE VALUE
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING IN COMMON STOCKS, DEBT
SECURITIES, HIGH YIELD/HIGH RISK FIXED INCOME SECURITIES AND FOREIGN SECURITIES.
MARKET ENVIRONMENT
1999 was a trying year for value investors, and we were no exception. The market
vastly favored high-flying momentum/growth stocks, in particular, anything that
smelled of the Internet. We continued to see a two-tiered market where a small
number of issues comprised most of the market's gains. Despite the overall
environment, the portfolio fared relatively well, largely due to our exposure to
semiconductor capital equipment companies.
PERFORMANCE
For the year ended December 31, 1999, WRL Third Avenue Value gained 15.72 %. By
comparison, the portfolio's benchmark, the Standard and Poor's Index of 500
Common Stocks returned 21.04 % for the period.
STRATEGY REVIEW
Our investment philosophy essentially ignores investor psychology and focuses
solely on business fundamentals. We believe fundamental values will be realized
longer term, if not through the outside passive stock market, then through
resource conversion activities such as mergers and acquisitions, hostile
takeovers, leveraged buyouts, refinancings, restructurings, and liquidations. We
are already experiencing much of this today. In the fourth quarter alone, seven
of the portfolio's companies were involved in resource conversion activities,
either announcements of, or completions of merger and acquisition activities.
Altogether, there were thirteen such activities for the full year.
We were pleasantly surprised early in the fourth quarter when Mitsui Marine &
Fire Insurance Co., Ltd., a Japanese non-life insurer, announced that it planned
to form a holding company with two of its competitors, The Nippon Fire & Marine
Insurance Co., Ltd. and The Koa Fire & Marine Insurance Co., Ltd. We expect
resource conversion activity to continue, perhaps even accelerate, if the
two-tiered market we are currently experiencing persists. Furthermore, we are
willing to take a more active role in enhancing shareholder value if necessary.
In one instance, we, in concert with Third Avenue Funds, put forth a proposal to
eliminate FSI International, Inc.'s poison pill and further restrict such
measures unless approved by shareholders.
OUTLOOK
Looking forward, we continue to focus on finding values in well-capitalized
companies for the portfolio. We believe in the quality of the companies we hold.
Currently, financial services companies are out of favor due to interest rate
concerns. We believe in companies, where the results are driven by the expense
ratio instead of the loss ratio, such as title insurers and financial
guarantors, which are attractive. In addition, we are focusing heavily on
healthcare-related companies. The healthcare industry has come under pressure
due to current and potential regulatory changes, providing us with excellent
buying opportunities.
/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 YEAR ENDED DECEMBER 31, 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>
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
[MOUNTAIN GRAPH]
IN THE FOURTH QUARTER ALONE, SEVEN OF THE PORTFOLIO'S COMPANIES WERE INVOLVED IN
RESOURCE CONVERSION ACTIVITIES.
* Inception
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 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. 8.52 %
AVX Corporation 7.80 %
Nabors Industries, Inc. 7.57 %
3Com Corporation 7.29 %
FSI International, Inc. 4.78 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Industrial Machinery & Equipment 30.07 %
Insurance 20.89 %
Electronic Components & Accessories 9.48 %
Oil & Gas Extraction 7.57 %
Computer & Office Equipment 7.29 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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.
1999 Annual Report 33
<PAGE>
WRL J.P. MORGAN REAL ESTATE SECURITIES
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM TOTAL RETURN FROM INVESTING PRIMARILY IN EQUITY SECURITIES OF
REAL ESTATE COMPANIES.
MARKET ENVIRONMENT
Despite strong returns from the broad equity indexes, negative returns for real
estate investment trusts ("REITs") persisted. Only during a few strong rallies
in April, May and December did REITs sustain gains comparable to or exceeding
those of the Standard and Poor's Index of 500 Common Stocks and the Morgan
Stanley REIT Index.
Poor REIT performance mirrored a general market trend away from value stocks.
The short REIT market rallies followed in large part announcements that Warren
Buffet had purchased shares of a REIT company. Most recently, Mr. Buffet chose
First Industrial Realty Trust, Inc. as the stock tip in the wallet he auctioned
for charity. It remains to be seen if the market will continue to take its
signal from one of America's top long-term investors.
PERFORMANCE
For the year ended December 31, 1999, WRL J.P. Morgan Real Estate Securities
returned (3.77)%, while its benchmark, the Morgan Stanley REIT Index returned
(4.55)%.
STRATEGY REVIEW
Among property sectors, performance varied widely during the year. Apartments
posted a strong return but the next closest, and the only other positive return,
came from the office/industrial sector. Investor worries about Internet shopping
hit the mall and shopping center sectors despite strong in-store retail sales
growth. Hotels continued to post poor returns as new supply and slowing revenue
per available room growth both point to bumpy times in that sector.
The portfolio's relatively modest overweighting in the office/industrial and
apartment sectors had a positive influence on returns, though a market weighting
in the under-performing hotel sector had a negative one. Performance was boosted
by good-sized positions in Equity Residential Properties Trust, Equity Office
Properties Trust, and Vornado Realty Trust. Lack of exposure to some of the
biggest losers, particularly Prison Realty Trust, Inc. also helped relative
performance. Negative contributors to performance for the year came from
National Golf Properties, Inc., which suffered early in the year from its
acquisition of another golf course company, and FelCor Lodging Trust
Incorporated, a hotel property company.
Some positive news for the REIT sector did come from Washington. With the
passage of the REIT Modernization Act, many of the operating and financial
restrictions imposed on REITs have been removed or loosened, thereby allowing
REITs to capitalize more effectively on their ownership of large portfolios of
real estate.
OUTLOOK
We believe the REIT market continues to offer some of the most attractive value
opportunities for investors in the capital markets. Good fundamentals continue
to underpin U.S. real estate markets, although at this stage of the cycle some
excesses are beginning to show. For the most part, REITs should continue to
generate moderating earnings growth in the 7 % to 8 % range during 2000. With
dividend yields around 8 %, REITs could easily produce returns in the
double-digit range with just a moderate multiple contraction.
/s/ DANIEL P. O'CONNOR /s/ KEVIN J. MAXWELL
- --------------------- --------------------
Daniel P. O'Connor Kevin J. Maxwell
WRL J.P. MORGAN REAL ESTATE SECURITIES
CO-PORTFOLIO MANAGERS
THE VIEWS EXPRESSED IN THIS PORTFOLIO MANAGER'S COMMENTARY REFLECT THOSE OF THE
PORTFOLIO MANAGERS THROUGH THE YEAR ENDED DECEMBER 31, 1999. THEY DO NOT
NECESSARILY REPRESENT THE VIEWS OF WRL INVESTMENT MANAGEMENT, INC. ("WRL
MANAGEMEN"T). 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
[MOUNTAIN GRAPH]
WE BELIEVE THE REIT MARKET CONTINUES TO OFFER SOME OF THE MOST ATTRACTIVE VALUE
OPPORTUNITIES FOR INVESTORS IN THE CAPITAL MARKETS.
* Inception
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 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 8.60 %
Equity Residential Properties Trust 6.56 %
Vornado Realty Trust 6.19 %
Public Storage, Inc. 5.69 %
ProLogis Trust 5.13 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Office Property 26.64 %
Apartments 21.95 %
Shopping Center 13.47 %
Regional Mall 12.03 %
Diversified 8.13 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 35
<PAGE>
WRL GOLDMAN SACHS GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM GROWTH OF CAPITAL FROM INVESTING PRIMARILY IN EQUITY
SECURITIES.
MARKET ENVIRONMENT
The large cap market, as measured by the Standard and Poor's Index of 500 Common
Stocks ("S&P 500"), had another strong year. The market continued to be fueled
by the strong performance of technology and Internet-related stocks, which are
experiencing a period of exceptionally high growth. During the last quarter,
investor fears of rising interest rates prompted some market volatility in
response to inflationary pressures. These fears were later muted, however, due
to evidence of only moderate inflation, and the perception that interest rates
would remain stable until the end of the year.
PERFORMANCE
From inception May 3, 1999, through December 31, 1999, the portfolio posted a
return of 17.50 %, significantly outperforming its benchmark, the S&P 500, which
posted a return of 11.00 % for the same period.
STRATEGY REVIEW
In all environments and sectors, we prefer to invest in companies we believe are
the dominant players in their respective industries, retain a strong business
franchise, and maintain sustainable growth rates. Stock selection was strong
across several sectors this period, with our technology, media, and
communications stocks significantly fueling performance. Top performers included
wireless phone chip manufacturer QUALCOMM Incorporated, as demand for hand-held
phones continued to outpace supply. The stock was also rewarded after the
company announced it would sell its hand-held phone business in order to
concentrate on wireless chips.
Certain holdings in Internet and related companies, such as Verisign, Inc.,
Yahoo! Inc., and CheckFree Holdings Corporation also roared ahead late in the
year. In our opinion these companies, along with our other selective Internet
holdings, should continue to benefit from Internet growth. We continue to search
for companies that provide the backbone and infrastructure to the Internet,
preferring this strategy to Internet sites or "dot-coms" that are still in
uncertain stages of development. In the cable sector, Time Warner Inc. and
Comcast Corporation performed well, as the cable industry continues to be
recognized as the preferred access provider to the Internet.
OUTLOOK
While we do not rely on economic forecasts in forming our investment decisions,
we are generally bullish on the U.S. economy. Over the last decade, global
communication has increased as a result of significant technological advances
and a generally peaceful world political environment. We believe 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, free cash flow, and favorable
demographic trends. Notwithstanding our bullish outlook for the U.S. economy, we
believe the enduring competitive advantages of the companies we own, based on
the criteria mentioned above, have the potential to withstand even an uncertain
market environment.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
STOCK SELECTION WAS STRONG ACROSS SEVERAL SECTORS THIS PERIOD, WITH OUR
TECHNOLOGY, MEDIA, AND COMMUNICATIONS STOCKS SIGNIFICANTLY FUELING PERFORMANCE.
* Inception
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 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 4.21 %
General Electric Company 4.06 %
Standard & Poor's 500
Depositary Receipt 3.25 %
Cisco Systems, Inc. 2.69 %
Wal-Mart Stores, Inc. 2.47 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 11.57 %
Telecommunications 9.57 %
Pharmaceuticals 8.11 %
Computer & Office Equipment 7.73 %
Commercial Banks 5.22 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 37
<PAGE>
WRL GOLDMAN SACHS SMALL CAP
FOR THE YEAR ENDED DECEMBER 31, 1999
...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
The year was exceptional for U.S. stock indexes.
The Russell 2000 Index, which severely lagged larger cap indexes virtually all
year, posted a remarkable 18.45 % return for the fourth period alone. With that,
the Russell 2000 Index ended the year ahead of the Standard and Poor's Index of
500 Common Stocks for the first time in six years. The full year also witnessed
record-setting spreads between returns for growth and value, as the Russell 2000
Growth Index return of 43.09 % significantly outpaced the (1.49)% return of the
Russell 2000 Value Index.
Of the major sectors comprising the market, technology (particularly Internet
stocks) and commercial services posted the biggest gains. Although Internet
stocks make up less than 3.5 % of the Russell 2000 Index holdings, as a group
they rose more than 100 % during the fourth quarter alone, accounting for about
4 % of the Russell 2000 Index overall return. In addition, communications and
healthcare contributed substantially to the portfolio's performance.
PERFORMANCE
From its inception May 3, 1999, through December 31, 1999, WRL Goldman Sachs
Small Cap posted a return of 17.82 %. By comparison, the Russell 2000 Index
posted a return of 16.62 % for the same period.
STRATEGY REVIEW
Our quantitative process seeks out stocks with good momentum that also appear to
be good values. We prefer stocks favored by fundamental research analysts, and
lower volatility stocks with a below-average probability of reporting
disappointing earnings. Over the long term, these factors have led to excess
returns, although they don't necessarily work well simultaneously. For instance,
during the fourth quarter, the returns achieved by lower volatility stocks
underperformed those with higher volatility. Similarly, returns attributable to
stocks with good momentum were low in this size segment, although still
positive. Nevertheless, our concentration in stocks with attractive research
analyst opinions fared well among smaller stocks.
OUTLOOK
As always, the portfolio remains fully invested in stocks. Our sector
weightings, distribution among size categories and exposures to other risk
factors are targeted to stay close to those of our benchmark. We intend to
maintain our disciplined, long-term approach to equity investing despite
possible volatility in the U.S. equity markets in the year 2000. We believe that
through our combined qualitative and quantitative strategy for selecting stocks,
WRL Goldman Small Cap has the potential to generate solid long-term returns for
shareholders.
/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 YEAR ENDED DECEMBER 31, 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>
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL GOLDMAN SACHS SMALL CAP AND THE RUSSELL 2000 INDEX
[MOUNTAIN GRAPH]
OUR QUANTITATIVE PROCESS SEEKS OUT STOCKS WITH GOOD MOMENTUM THAT ALSO APPEAR TO
BE GOOD VALUES.
* Inception
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 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)
Westwood One, Inc. 0.79 %
Microstrategy Incorporated 0.72 %
Broadvision, Inc. 0.57 %
VerticalNet, Inc. 0.54 %
InterDigital Communications Corporation 0.54 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 9.19 %
Electronic Components & Accessories 5.49 %
Industrial Machinery & Equipment 3.51 %
Pharmaceuticals 3.51 %
Computer & Office Equipment 3.45 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 FUND'S CURRENT PROSPECTUS.
SMALL-CAP SECURITIES INVOLVE CERTAIN RISKS DESCRIBED IN THE PROSPECTUS THAT
SHOULD BE CONSIDERED CAREFULLY BEFORE INVESTING.
1999 Annual Report 39
<PAGE>
WRL T. ROWE PRICE DIVIDEND GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...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
Following a modest third quarter correction, the market surged ahead in the
fourth quarter and finished 1999 with spectacular returns. The Standard and
Poor's Index of 500 Common Stocks ("S&P 500") rose more than 20 % for the fifth
consecutive year, though gains were concentrated in technology and basic
industry. This environment was difficult for the portfolio, as its exposure to
both of these sectors is limited. Few technology companies pay a dividend, and
most cyclical shares lack the consistent growth in earnings and dividends that
we seek in our investments.
PERFORMANCE
The portfolio posted disappointing returns since its inception. For the period
May 3, 1999, through December 31, 1999, WRL T. Rowe Price Dividend Growth
returned (7.40)%. By comparison, the S&P 500 gained 11.00 % for the same eight
months. Our results were hurt by the performance of certain individual holdings
and by general market trends. Galileo International, Inc., a leading processor
of airline reservations, fell sharply when a changeover in the sales force
caused a slowdown in U.S. bookings. The company continued to meet earnings
estimates and now trades at just 10 times free cash flow. ACE Limited, a
diversified property/casualty insurer based in Bermuda, declined despite signs
of improvement in the industry's pricing structure and good news regarding its
recent purchase of Cigna Corporation's property and casualty insurance business.
We believe the stock offers terrific value with a low multiple and good dividend
yield.
STRATEGY REVIEW
Other market developments were negative for our stocks, particularly investors'
seemingly single-minded focus on return with little regard for risk. Our search
for companies with consistent growth in earnings and dividends has often led us
to areas of defensive growth, including pharmaceuticals, financial services, and
consumer staples. Such areas were shunned by investors in favor of opportunities
for fast gains in technology, especially the Internet. For example, Freddie Mac
was down 26 % in 1999, while earnings grew 27 %.
Our best performers included Omnicom Group, Inc., the world's largest
advertising and marketing services company, a global financial services giant,
and ALLTEL Corporation, a southeastern telecommunications services company. The
best overall industries included telephone services and electronic systems.
OUTLOOK
Higher interest rates and stretched valuations in the technology sector could
limit returns from the broad market averages in 2000. However, valuations in
several of the portfolio's core sectors, including healthcare, financials, and
consumer nondurables, are becoming increasingly attractive. We would welcome a
"broadening" of the market to recognize the value we see in these investments.
As always, we remain especially conscious of risk and will continue to seek a
margin of safety in all of our new investments. While 1999 proved to be an off
year for this portfolio, we continue to believe that buying stocks of companies
with consistently strong earnings and dividend growth will lead to attractive
total returns for our shareholders.
/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 YEAR ENDED DECEMBER 31, 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>
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
[MOUNTAIN GRAPH]
MARKET DEVELOPMENTS WERE NEGATIVE FOR OUR STOCKS, PARTICULARLY INVESTORS'
SEEMINGLY SINGLE-MINDED FOCUS ON RETURN WITH LITTLE REGARD FOR RISK.
* Inception
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 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)
Exxon Mobil Corporation 2.51 %
Citigroup Inc. 2.30 %
Fannie Mae 2.15 %
XL Captial Ltd. - Class A 2.08 %
ProLogis Trust 2.00 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Commercial Banks 9.09 %
Pharmaceuticals 8.95 %
Petroleum Refining 8.40 %
Telecommunications 7.20 %
Holding & Other Investment Offices 6.22 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 41
<PAGE>
WRL T. ROWE PRICE SMALL CAP
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS LONG-TERM GROWTH OF CAPITAL FROM INVESTING PRIMARILY IN COMMON STOCKS
OF SMALL GROWTH COMPANIES.
MARKET ENVIRONMENT
Since the portfolio's inception, we saw continued strength in the economy and
three increases in short-term rates by the Federal Reserve Board to keep
inflation in check. Like the market as a whole, small-cap stocks went on a
roller coaster ride but generated a respectable gain for the period. Technology
stocks powered both large and small stock indexes, as investors favored
high-risk, high-expectation investments. Value and income-oriented stocks
languished.
The portfolio's inception date turned out to be propitious since it coincided
with a strong rebound in small-cap stocks after steep declines earlier in 1999.
The rally lasted into the summer, with small-caps generally performing better
than the overall market for a few months. After a sharp sell-off in September,
small-caps recovered and then surged at year-end, propelled mostly by
technology.
PERFORMANCE
From inception May 3, 1999, through December 31, 1999, WRL T. Rowe Price Small
Cap produced a total return of 38.49 %, outperforming its benchmark, the Russell
2000 Index, which gained 16.62 % for the same period.
STRATEGY REVIEW
While our overall investment strategy remained more conservative than that of
many small-cap growth portfolios, we did raise our target growth rate for stock
selection purposes. As a result, almost 50 % of the portfolio was invested in
technology, computer software and services, and telecommunications at year end.
Top performers within these areas included QLogic Corporation (computer
connectivity), Proxim, Inc. (wireless networking), and Emmis Communications
Corporation (radio and TV broadcaster).
As we increased exposure to technology and telecom-related sectors, we trimmed
some other allocations such as miscellaneous business services, media and
communications, and healthcare services. Retail, healthcare, and business
services had negative returns. Among our holdings that hurt results were
Consolidated Graphics, Inc., a consolidator in the commercial printing business
that missed earnings estimates, Omnicare, Inc. and Medquist Inc. in the hospital
sector, and Networks Associates, Inc., which fell victim to aggressive
accounting and poor inventory management.
OUTLOOK
Though the past year produced the largest spread between growth and value stocks
on record, we would not expect this trend to continue. There were many signs of
speculative excess in last year's market, particularly the emergence of
risk-insensitive investors and the huge number of initial public offerings,
which, by the way, deteriorated in quality as the months wore on. We expect that
stock returns and company fundamentals will again become closely linked and that
valuations will matter. Valuations in the small-cap growth market vary widely,
but overall the sector is still at the low end of its historical valuation
range, technology stocks notwithstanding. We believe that market leadership will
broaden this year to include areas left behind in 1999. WRL T. Rowe Price Small
Cap's diversified approach to small-cap investing should provide some downside
protection while ensuring that investors are exposed to all the sectors of this
part of the market.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
ALMOST 50 % OF THE PORTFOLIO WAS INVESTED IN TECHNOLOGY, COMPUTER SOFTWARE AND
SERVICES, AND TELECOMMUNICATIONS AT YEAR END.
* Inception
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 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)
RSA Security, Inc. 1.12 %
Liberate Technologies 1.06 %
Emmis Communications Corporation -
Class A 1.02 %
Proxim, Inc. 1.01 %
QRS Corporation 0.99 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 20.97 %
Electronic Components & Accessories 11.93 %
Computer & Office Equipment 6.12 %
Pharmaceuticals 4.33 %
Instruments & Related Products 4.13 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 43
<PAGE>
WRL SALOMON ALL CAP
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS CAPITAL APPRECIATION FROM INVESTING PRIMARILY IN COMMON STOCKS AND
CONVERTIBLE SECURITIES.
MARKET ENVIRONMENT
1999 rang out the fifth straight year of 20 %-plus returns for the Standard and
Poor's Index of 500 Common Stocks ("S&P 500"), continuing the U.S. economy's
unprecedented bull market. At the start of the year, the economy defied odds
with strong growth and low inflation. As the year progressed, however, the
economy was challenged by higher than expected earnings and accelerating global
growth causing the Federal Reserve Board to raise interest rates three times,
from 4.75 % to 5.50 %. While the long-term secular growth trend with low
inflation is still intact, the intermediate trend may shift to both increased
inflation and increased earnings of economically sensitive companies. This trend
is normal and healthy for long term economic growth.
Throughout the year, technology stocks drove the equity market, as the sector
accounted for two-thirds of the S&P 500's performance -- Microsoft Corporation
alone accounted for 10 % of the gain. Market breadth remained quite narrow right
up to the end of the year, as technology continued to gain considerable
momentum. This momentum came at the expense of most other sectors.
PERFORMANCE
The portfolio had strong performance in its inaugural year, beating its
benchmark by a wide margin. From inception May 3, 1999, through December 31,
1999, WRL Salomon All Cap produced a total return of
15.57 %. The Russell 3000 Index, meanwhile, gained 10.88 %. The greatest
contributors to performance were our technology, telecom/media, and energy
positions. Our tobacco stocks were our most notable underperformers and are no
longer prominent in the portfolio. We do, however, retain a material position in
Nabisco Group Holdings Corp., the former parent of RJR Nabisco Holdings Corp.,
which currently only owns about 80 % of the country's leading cookie/cracker
company.
STRATEGY REVIEW
The portfolio benefited from its bottom-up, broad market strategy. Typically, we
identify opportunities in most sectors, whether they are currently "in favor" or
"out of favor." In recent months, many of our incremental purchases have come in
four areas: energy, traditional retailers, consumer products, and technology.
With the notable exception of the "dot-com" stocks, we maintain broad market
exposure. We prefer to attain our Internet exposure through the myriad of
traditional companies that are developing e-commerce strategies but have
sustainable earnings and cash flow, companies like International Business
Machines Corp. and Bell Atlantic Corporation, for example.
OUTLOOK
We believe that the coming year should provide many opportunities within the
stock market, particularly in reasonably valued, out-of-favor companies. As
global growth accelerates, increased earnings should follow. This environment
may cause price-to-earnings ratio contraction for the market. Most importantly,
we believe the established companies that are embracing today's new technologies
with fiscal discipline have a substantial long-term opportunity to gain market
share, potentially accelerating their growth rates.
/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 YEAR ENDED DECEMBER 31, 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
[MOUNTAIN GRAPH]
WE IDENTIFY OPPORTUNITIES IN MOST SECTORS, WHETHER THEY ARE CURRENTLY "IN FAVOR"
OR "OUT OF FAVOR."
* Inception
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 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)
Seagate Technology, Inc. 3.40 %
Federated Department Stores, Inc. 3.10 %
Nabisco Group Holdings 2.86 %
Hormel Foods Corporation 2.74 %
Devon Energy Corporation 2.51 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Telecommunications 8.81 %
Food & Kindred Products 8.26 %
Computer & Office Equipment 7.15 %
Petroleum Refining 5.89 %
Food Stores 5.76 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 45
<PAGE>
WRL PILGRIM BAXTER MID CAP GROWTH
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS CAPITAL APPRECIATION FROM INVESTING PRIMARILY IN COMMON STOCKS AND
CONVERTIBLE SECURITIES.
MARKET ENVIRONMENT
Throughout 1999, consumers continued to spend, the manufacturing sector
continued to grow, corporate profits remained strong, jobs were plentiful, and
inflation remained low. During the year, foreign economies began to recover. By
the end of the year, the strength and length of the bull market has surpassed
most expectations, even as computer-related Y2K worries appeared to be over.
During the second half of the year, the Federal Reserve Board ("Fed") raised
interest rates three times to absorb the additional liquidity it injected into
the market in 1998. While many predicted that the third increase would be
disruptive, the stock market barely missed a beat.
The question for the coming year is whether the Fed will continue to raise
interest rates with the intention of slowing the economy. Some economists are
already predicting that the Fed will raise rates one or more times in early
2000. In response, worried investors sent the market down sharply in early
January believing that U.S. monetary authorities would indeed take the
millennium punchbowl away.
PERFORMANCE
From inception May 3, 1999, through December 31, 1999, WRL Pilgrim Baxter Mid
Cap Growth returned 78.00 %, including a stunning 51.49 % gain in the fourth
quarter alone. This compares favorably to the Russell Midcap Growth Index's
returns of 39.92 % and 39.47 % for the same time periods.
STRATEGY REVIEW
The key factors that led to the favorable results in the fourth quarter were
evident throughout the year. First, growth stocks significantly outperformed
value stocks across all capitalizations. This is evidenced by the full year
return of the Russell Midcap Growth Index -- 51.29 % -- compared to that of the
Russell Midcap Value Index -- (0.11)%. Second, we were overweighted in the
sector that had, by far, the best returns in the market: technology. And third,
the individual stocks in each major sector of the portfolio outperformed the
stocks held in the benchmark. This was especially true in the technology sector
where our holdings significantly outperformed those represented in the Russell
Midcap Growth Index. In addition, the portfolio's holdings in the consumer,
healthcare, industrial, and services sectors well exceeded those of the
benchmark.
OUTLOOK
Although equity mutual funds overall experienced net inflows for 1999, small-cap
funds actually experienced net outflows for the year. Some of the so-called
market experts are now calling for a significant rotation by institutional
capital into small- and mid-cap stocks. If institutional investors do indeed
begin to rotate assets out of large-caps and retail investors continue their
shift that began at the end of last year, we believe small- and mid-cap stocks
could enjoy a second straight year of strong performance.
/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 YEAR ENDED DECEMBER 31, 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>
[PBHG LOGO]
COMPARISON OF CHANGE IN VALUE OF $ 10,000 INVESTMENT IN WRL SERIES FUND, INC.
WRL PILGRIM BAXTER MID CAP GROWTH AND THE RUSSELL MIDCAP GROWTH INDEX
[MOUNTAIN GRAPH]
GROWTH STOCKS SIGNIFICANTLY OUTPERFORMED VALUE STOCKS ACROSS ALL
CAPITALIZATIONS.
* Inception
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 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)
Verisign, Inc. 2.82 %
InfoSpace.com, Inc. 2.82 %
Emulex Corporation 2.63 %
Medimmune, Inc. 2.63 %
JDS Uniphase Corporation 2.60 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 25.62 %
Business Services 14.27 %
Electronic Components & Accessories 12.41 %
Pharmaceuticals 6.83 %
Retail Trade 5.10 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 47
<PAGE>
WRL DREYFUS MID CAP
FOR THE YEAR ENDED DECEMBER 31, 1999
...SEEKS TOTAL INVESTMENT RETURN WHICH CONSISTENTLY OUTPERFORMS THE STANDARD AND
POOR'S MIDCAP 400 INDEX.
MARKET ENVIRONMENT
The quantitative process we use in managing the portfolio performed below its
historical trend throughout 1999. Our valuation process uses a number of
fundamental characteristics that are both price (value) and earnings (growth)
sensitive, while in portfolio construction we follow a sector neutral approach.
We feel that during most of the year, we operated in a market environment where
investors paid little attention to traditional measures of value such as price,
price to earnings multiples, and actual earnings growth. Stocks with the highest
price multiples and, in many cases, very modest real earnings, provided the most
attractive returns during 1999.
PERFORMANCE
From inception May 3, 1999, through December 31, 1999, WRL Dreyfus Mid Cap
gained 7.20 %. By comparison, the Standard and Poor' MidCap 400 Index ("S&P
400") returned 12.69 % for the same eight-month period. The performance of the
portfolio for the fourth quarter and the second half of 1999 was below the S&P
400. While the absolute return in the last quarter was nearly solid, we are
nonetheless disappointed that the portfolio underperformed its benchmark for the
full period.
STRATEGY REVIEW
Since our process uses long-term trends to guide stock selection, we continued
to operate with some sensitivity to issues such as actual earnings. This process
did not preclude us from owning any of these types of issues, however, and we
actually owned a number of holdings that had dramatic gains. These issues
include Verisign, Inc., Medimmune, Inc., Young & Rubicam Inc., and Legato
Systems, Inc. The year also saw a concentration of performance in certain
sectors, technology being the most notable. According to our calculation, if one
looks at the make-up of the S&P 400 at year end, over 60 % of those companies
had a negative return for 1999. Thus, both our valuation process and portfolio
construction techniques were subject to less than favorable market conditions.
OUTLOOK
Our approach to mid-cap investing remains unchanged. We continue to view equity
management as a two step process -- security valuation and portfolio
construction. We remain committed to our quantitatively based valuation process
along with our fully invested and economic sector neutral portfolio construction
methods. Our goal continues to be a benchmark driven strategy where market and
economic sector risks are neutralized, and individual stock selection is the
primary determinant of performance. We are continuously reviewing and working to
improve our valuation process along with our portfolio construction techniques,
all with the goal of providing competitive investment results.
/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 YEAR ENDED DECEMBER 31, 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 MIDCAP 400 INDEX
[MOUNTAIN GRAPH]
BOTH OUR VALUATION PROCESS AND PORTFOLIO CONSTRUCTION TECHNIQUES WERE SUBJECT TO
LESS THAN FAVORABLE MARKET CONDITIONS.
* Inception
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 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)
Maxim Integrated Products 3.04 %
Biogen, Inc. 2.48 %
Convergys Corporation 1.80 %
Altera Corporation 1.60 %
Jabil Circuit, Inc. 1.51 %
FIVE LARGEST INDUSTRIES (% OF NET ASSETS)
Computer & Data Processing Services 14.38 %
Electronic Components & Accessories 10.85 %
Pharmaceuticals 6.38 %
Electric Services 4.82 %
Commercial Banks 4.52 %
EQUITY MATRIX
INVESTMENT STYLE
[BOX GRAPH]
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 Annual Report 49
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN MONEY MARKET
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
---------- -------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (32.62 %)
Federal Home Loan Bank
1.50 %, due 01/03/2000 ............... $ 18,303 $ 18,301
Federal Home Loan Bank
5.39 %, due 02/02/2000 ............... 5,000 4,976
Federal Home Loan Bank (7d)
5.92 %, due 10/04/2000 ............... 15,000 14,992
Freddie Mac
1.75 %, due 01/03/2000 ............... 101,930 101,921
--------
Total Short-Term U.S.
Government Obligations
(cost: $ 140,190) ..................................... 140,190
--------
COMMERCIAL PAPER (32.56 %)
BUSINESS CREDIT INSTITUTIONS (16.99 %)
Alpine Securitization
Corporation - 144A (7c)
6.30 %, due 01/18/2000 ............... 5,000 4,985
Alpine Securitization
Corporation - 144A (7c)
5.96 %, due 02/29/2000 ............... 2,000 1,980
Aspen Funding
Corporation - 144A (7c)
5.95 %, due 01/14/2000 ............... 8,000 7,983
BBL North America
Funding - 144A (7c)
6.02 %, due 01/21/2000 ............... 1,000 997
CXC Inc.
7.00 %, due 01/13/2000 ............... 3,000 2,993
CXC Inc.
6.40 %, due 02/01/2000 ............... 5,000 4,972
CXC Inc.
6.07 %, due 02/08/2000 ............... 5,000 4,968
Enterprise Funding
Corporation - 144A (7c)
6.55 %, due 01/18/2000 ............... 4,000 3,988
Enterprise Funding
Corporation - 144A (7c)
6.10 %, due 02/08/2000 ............... 9,938 9,874
Monte Rosa Capital
Corporation - 144A (7c)
6.38 %, due 02/22/2000 ............... 4,714 4,671
Parthenon Receivable
Funding L.L.C. - 144A (7c)
6.55 %, due 01/18/2000 ............... 8,000 7,975
Receivable Capital
Corporation - 144A (7c)
6.30 %, due 01/10/2000 ............... 2,217 2,214
Receivable Capital
Corporation - 144A (7c)
6.12 %, due 02/04/2000 ............... 5,000 4,971
PRINCIPAL MARKET
AMOUNT VALUE
---------- --------
COMMERCIAL PAPER (CONTINUED)
BUSINESS CREDIT INSTITUTIONS (CONTINUED)
Receivable Capital
Corporation - 144A (7c)
6.20 %, due 02/04/2000 .............. $ 1,490 $ 1,481
Windmill Funding
Corp. - 144A (7c)
6.12 %, due 01/18/2000 .............. 9,000 8,974
COMMERCIAL BANKS (3.11 %)
Bank of America Corporation
5.99 %, due 03/13/2000 .............. 7,500 7,410
Bank of New York
Company, Inc. (The)
5.75 %, due 02/22/2000 .............. 6,000 5,950
ELECTRIC SERVICES (2.08 %)
Southern Company
(The) - 144A (7c)
5.75 %, due 02/09/2000 .............. 9,000 8,944
PERSONAL CREDIT INSTITUTIONS (3.46 %)
General Electric Capital
Corporation
5.78 %, due 02/18/2000 .............. 5,000 4,961
General Motors Acceptance
Corporation
6.09 %, due 01/18/2000 .............. 5,000 4,986
General Motors Acceptance
Corporation
5.72 %, due 03/17/2000 .............. 5,000 4,940
PETROLEUM REFINING (0.69 %)
Exxon Mobil
Corporation - 144A (7c)
6.00 %, due 01/27/2000 .............. 3,000 2,987
SECURITY & COMMODITY BROKERS (2.54 %)
Salomon Smith Barney
Holdings Inc.
6.49 %, due 01/27/2000 .............. 2,000 1,991
Salomon Smith Barney
Holdings Inc.
6.01 %, due 03/01/2000 .............. 9,000 8,910
TELECOMMUNICATIONS (3.69 %)
BellSouth Capital Funding
Corporation
5.68 %, due 02/10/2000 .............. 7,000 6,956
France Telecom
6.10 %, due 02/28/2000 .............. 9,000 8,912
--------
Total Commercial Paper
(cost: $ 139,973) .................................... 139,973
--------
See Notes to the Financial Statements, which is an integral part of this report.
50 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN MONEY MARKET (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM OBLIGATIONS (20.24 %)
BEER, WINE, & DISTILLED BEVERAGES (2.56 %)
Diageo PLC (7d)
6.05 %, due 08/24/2000 .............. $11,000 $10,995
BUSINESS CREDIT INSTITUTIONS (0.70 %)
CIT Group, Inc. (The) (7d)
5.75 %, due 08/14/2000 .............. 3,000 2,998
COMMERCIAL BANKS (12.33 %)
American Express Centurion
Bank (7d)
5.70 %, due 04/26/2000 .............. 3,000 3,000
American Express Centurion
Bank (7d)
5.75 %, due 07/12/2000 .............. 1,500 1,500
Bayerische Landesbank - NY (7d)
6.39 %, due 12/15/2000 .............. 2,000 1,998
Comerica Incorporated (7d)
5.65 %, due 03/22/2000 .............. 10,000 9,999
First Union Corporation (7d)
6.15 %, due 09/05/2000 .............. 5,000 4,999
FleetBoston Financial Corp. (7d)
6.24 %, due 10/13/2000 .............. 6,000 5,997
KeyBank National Association (7d)
6.38 %, due 04/28/2000 .............. 2,000 2,001
NationsBank of Texas National
Association
6.75 %, due 08/15/2000 .............. 2,500 2,511
PNC Bank National Association (7d)
6.41 %, due 07/12/2000 .............. 6,000 5,998
SouthTrust Bank National
Association (7d)
6.43 %, due 07/24/2000 .............. 10,000 9,992
Wells Fargo & Co.
5.31 %, due 03/31/2000 .............. 5,000 5,000
FINANCE (0.47 %)
Abbey National Treasury Services
5.22 %, due 05/11/2000 .............. 2,000 2,000
SECURITY & COMMODITY BROKERS (2.09 %)
Morgan Stanley Dean
Witter and Co. (7d)
6.40 %, due 01/19/2000 .............. 9,000 9,000
TELECOMMUNICATIONS (2.09 %)
AT&T Capital Corporation (7d)
7.57 %, due 06/14/2000 .............. 2,000 2,012
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM OBLIGATIONS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
AT&T Corp. - 144A (7c) (7d)
6.14 %, due 07/13/2000 ....... $ 7,000 $ 6,997
--------
Total Short-Term Obligations
(cost: $ 86,997) ................ 86,997
--------
CERTIFICATES OF DEPOSITS (13.72 %)
Bank of Nova Scotia (The)
5.15 %, due 04/20/2000 ....... 4,000 3,999
Bayerische Hypo - und
Vereinsbank AG - NY
5.15 %, due 04/25/2000 ....... 6,000 6,000
Bayerische Landesbank - NY
5.12 %, due 03/21/2000 ....... 6,000 5,998
Bayerische Landesbank - NY
5.93 %, due 10/02/2000 ....... 5,000 4,993
Canadian Imperial Bank of
Commerce - NY
5.01 %, due 02/07/2000 ....... 6,500 6,500
Commerzbank AG - NY
4.99 %, due 01/25/2000 ....... 5,000 5,000
Deutsche Bank AG - NY
5.00 %, due 01/06/2000 ....... 3,000 3,000
Deutsche Bank AG - NY
6.19 %, due 12/01/2000 ....... 9,500 9,494
UBS AG
6.24 %, due 12/04/2000 ....... 8,500 8,494
UBS AG
6.44 %, due 12/21/2000 ....... 5,500 5,497
--------
Total Certificates of Deposits
(cost: $ 58,975) ................................... 58,975
--------
Total Investment Securities
(cost: $ 426,135) .................................. $426,135
========
SUMMARY
Investments, at market value ... 99.14 % $426,135
Other assets in
excess of liabilities ........ 0.86 % 3,676
-------- --------
Net assets ..................... 100.00 % $429,811
======== ========
See Notes to the Financial Statements, which is an integral part of this
report.
1999 ANNUAL REPORT 51
<PAGE>
SCHEDULE OF INVESTMENTS
WRL AEGON BOND
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
U.S. GOVERNMENT OBLIGATIONS (22.24 %)
U.S. Treasury Bond
7.25 %, due 05/15/2016 ................. $ 5,000 $ 5,225
U.S. Treasury Bond
7.50 %, due 11/15/2016 ................. 1,500 1,605
U.S. Treasury Bond (7b)
6.25 %, due 08/15/2023 ................. 5,000 4,714
U.S. Treasury Bond (7b)
6.50 %, due 11/15/2026 ................. 10,000 9,746
U.S. Treasury Bond
5.25 %, due 11/15/2028 ................. 5,350 4,408
U.S. Treasury Note (7b)
5.75 %, due 10/31/2002 ................. 5,000 4,930
U.S. Treasury Note (7b)
5.75 %, due 08/15/2003 ................. 2,000 1,958
U.S. Treasury Note
6.50 %, due 05/15/2005 ................. 750 750
U.S. Treasury Note (7b)
4.75 %, due 11/15/2008 ................. 1,000 882
-------
Total U.S. Government Obligations
(cost: $ 37,111) ....................................... 34,218
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (15.93 %)
Fannie Mae
5.25 %, due 01/15/2003 ................. 5,000 4,813
Fannie Mae
5.75 %, due 06/15/2005 ................. 5,000 4,747
Fannie Mae
5.75 %, due 02/15/2008 ................. 5,000 4,615
Fannie Mae
7.00 %, due 08/25/2010 ................. 2,000 1,944
Fannie Mae
6.00 %, due 06/01/2013 ................. 1,692 1,606
Fannie Mae
6.50 %, due 07/01/2029 ................. 1,971 1,857
Federal Home Loan Bank
5.50 %, due 08/13/2001 ................. 5,000 4,926
-------
Total U.S. Government Agency Obligations
(cost: $ 25,649) ....................................... 24,508
-------
MORTGAGE-BACKED SECURITIES (2.97 %)
Aetna Commercial Mortgage Trust
1997-Aetna Life Insurance
Company
6.71 %, due 01/15/2006 ................. 2,500 2,436
CBM Funding Corporation
7.08 %, due 11/01/2007 ................. 2,150 2,141
-------
Total Mortgage-Backed Securities
(cost: $ 4,817) ........................................ 4,577
-------
ASSET-BACKED SECURITIES (7.56 %)
AmeriCredit Automobile
Receivables Trust 1996-D
6.30 %, due 05/12/2002 ................. 1,500 1,482
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
ASSET-BACKED SECURITIES (CONTINUED)
CIT RV Trust 1998-A
6.09 %, due 03/15/2012 ............... $ 2,000 $ 1,953
Citibank Credit Card Master
Trust I 1998-2
6.05 %, due 01/15/2010 ............... 2,000 1,860
CSXT Trade Receivable Master
Trust 1998-1
6.00 %, due 07/26/2004 ............... 2,000 1,888
DVI Receivables VIII, L.L.C
6.26 %, due 05/13/2007 ............... 1,500 1,479
Ford Credit Auto Owner
Trust 1999-B
5.80 %, due 06/15/2002 ............... 3,000 2,966
-------
Total Asset-Backed Securities
(cost: $ 11,960) ....................................... 11,628
-------
CORPORATE DEBT SECURITIES (46.55 %)
AUTO REPAIR, SERVICES & PARKING (1.66 %)
Ryder System, Inc.
9.25 %, due 05/15/2001 ............... 2,500 2,559
AUTOMOTIVE (2.53 %)
Daimler-Benz of North
America, Inc.
7.38 %, due 09/15/2006 ............... 2,000 1,995
Ford Motor Credit Company
6.75 %, due 08/15/2008 ............... 2,000 1,900
BUSINESS CREDIT INSTITUTIONS (2.55 %)
FINOVA Capital Corporation
6.50 %, due 07/28/2002 ............... 2,000 1,960
Heller Financial, Inc.
6.44 %, due 10/06/2002 ............... 2,000 1,958
CHEMICALS & ALLIED PRODUCTS (1.21 %)
DSM NV - 144A (7c)
6.75 %, due 05/15/2009 ............... 2,000 1,860
COMMERCIAL BANKS (8.41 %)
Bank of New York
Company, Inc. (The)
6.63 %, due 06/15/2003 ............... 2,000 1,954
Den Danske Bank - 144A (7c)
6.38 %, due 06/15/2008 ............... 2,500 2,272
NationsBank Corporation
7.50 %, due 09/15/2006 ............... 3,000 3,000
PNC Bank Corp.
6.88 %, due 07/15/2007 ............... 2,000 1,905
Swiss Bank Corporation
6.75 %, due 07/15/2005 ............... 2,000 1,950
Swiss Bank Corporation
7.00 %, due 10/15/2015 ............... 2,000 1,873
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 DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
CORPORATE DEBT SECURITIES (CONTINUED)
DEPARTMENT STORES (1.21 %)
Penney (J.C.) Company, Inc.
7.60 %, due 04/01/2007 ................. $2,000 $1,858
DRUG STORES & PROPRIETARY STORES (0.96 %)
Rite Aid Corporation - 144A (7c)
6.00 %, due 12/15/2005 ................. 2,000 1,470
ELECTRIC SERVICES (2.47 %)
PSEG Capital Corporation -
144A (7c)
6.25 %, due 05/15/2003 ................. 2,000 1,920
TXU Eastern Holdings Limited
6.45 %, due 05/15/2005 ................. 2,000 1,880
ELECTRIC, GAS & SANITARY SERVICES (2.36 %)
Alliant Energy Resources, Inc. -
144A (7c)
7.38 %, due 11/09/2009 ................. 2,000 1,948
United Utilities PLC
6.88 %, due 08/15/2028 ................. 2,000 1,680
ENVIRONMENTAL SERVICES (1.55 %)
Waste Management, Inc.
6.13 %, due 07/15/2001 ................. 2,500 2,388
FOOD & KINDRED PRODUCTS (1.22 %)
CPC International, Inc.
6.15 %, due 01/15/2006 ................. 2,000 1,880
GAS PRODUCTION & DISTRIBUTION (1.23 %)
Tennessee Gas Pipeline Company
7.50 %, due 04/01/2017 ................. 2,000 1,886
MORTGAGE BANKERS AND BROKERS (3.82 %)
Captiva Finance Ltd. - 144A (7c)
6.86 %, due 11/30/2009 ................. 2,000 1,903
Countrywide Home Loans, Inc.
5.62 %, due 10/16/2000 ................. 2,000 1,982
Money Store (The)
7.30 %, due 12/01/2002 ................. 2,000 1,995
PERSONAL CREDIT INSTITUTIONS (2.82 %)
Capital One Bank
6.66 %, due 06/19/2000 ................. 400 400
General Motors Acceptance
Corporation
6.85 %, due 06/17/2004 ................. 4,000 3,935
PETROLEUM REFINING (1.27 %)
Texaco Capital Inc.
7.09 %, due 02/01/2007 ................. 2,000 1,953
PRINTING & PUBLISHING (1.25 %)
Tribune Company
6.88 %, due 11/01/2006 ................. 2,000 1,920
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CORPORATE DEBT SECURITIES (CONTINUED)
RAILROADS (0.64 %)
CSX Corporation
7.25 %, due 05/01/2004 ................. $ 1,000 $ 990
RUBBER & MISC. PLASTIC PRODUCTS (0.63 %)
Rubbermaid Incorporated
6.60 %, due 11/15/2006 ................. 1,000 964
SAVINGS INSTITUTIONS (0.88 %)
Golden State Holdings Inc. ................
7.13 %, due 08/01/2005 ................. 1,500 1,359
SECURITY & COMMODITY BROKERS (3.80 %)
Lehman Brothers Holdings Inc. .............
6.38 %, due 10/23/2000 ................. 2,050 2,045
Merrill Lynch & Co., Inc. .................
6.56 %, due 12/16/2007 ................. 2,000 1,883
Morgan Stanley Dean
Witter and Co.
6.88 %, due 03/01/2007 ................. 2,000 1,933
TELECOMMUNICATIONS (0.95 %)
MCI WORLDCOM, Inc. ........................
6.95 %, due 08/15/2006 ................. 1,500 1,463
TRANSPORTATION & PUBLIC UTILITIES (1.20 %)
General American Transportation
Corporation
6.75 %, due 05/01/2009 ................. 2,000 1,843
WHOLESALE TRADE NONDURABLE GOODS (1.93 %)
Sysco Corporation
7.25 %, due 04/15/2007 ................. 3,000 2,974
--------
Total Corporate Debt Securities
(cost: $ 75,421) ........................................ 71,638
--------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (1.30 %)
Federal Home Loan Bank
5.00 %, due 01/03/2000 ................. 2,000 1,999
--------
Total Short-Term U.S.
Government Obligations
(cost: $ 1,999) ......................................... 1,999
--------
Total Investment Securities
(cost: $ 156,957) ....................................... $148,568
========
SUMMARY
Investments, at market value .............. 96.55 % $148,568
Other assets in
excess of liabilities .................. 3.45 % 5,317
-------- --------
Net assets ................................ 100.00 % $153,885
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 53
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GROWTH
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
CORPORATE DEBT SECURITIES (0.32 %)
COMMUNICATION (0.32 %)
Charter Communications
Holdings, LLC
8.63 %, due 04/01/2009 ................... $14,218 $ 13,134
---------
Total Corporate Debt Securities
(cost: $ 14,176) ........................................... 13,134
---------
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (89.82 %)
BEVERAGES (0.51 %)
Coca-Cola Company (The) ..................... 364,909 $ 21,256
BUSINESS SERVICES (3.04 %)
eBay, Inc. (7a) (7b) ........................ 316,387 39,608
Exodus Communications,
Inc. (7a) (7b) ............................ 971,090 86,245
COMMUNICATION (3.56 %)
Charter Communications, Inc. -
Class A (7a) .............................. 1,191,155 26,057
Comcast Corporation - Class A ............... 996,984 50,410
NTL Incorporated (7a) (7b) .................. 567,369 70,779
COMMUNICATIONS EQUIPMENT (12.63 %)
Nokia Oyj - Sponsored ADR ................... 2,520,376 478,872
Nortel Networks Corporation (7b) ............ 439,840 44,424
COMPUTER & DATA PROCESSING SERVICES (16.92 %)
America Online, Inc. (7a) ................... 4,004,276 302,073
BEA Systems, Inc. (7a) (7b) ................. 195,800 13,694
Fiserv, Inc. (7a) ........................... 994,080 38,086
Microsoft Corporation (7a) .................. 2,581,374 301,375
Verisign, Inc. (7a) (7b) .................... 218,670 41,752
Vignette Corporation (7a) ................... 25,255 4,117
COMPUTER & OFFICE EQUIPMENT (9.69 %)
Cisco Systems, Inc. (7a) .................... 2,380,160 254,975
Dell Computer Corporation (7a) .............. 1,940,499 98,965
EMC Corporation (7a) ........................ 244,910 26,756
Juniper Networks, Inc. (7a) (7b) ............ 60,380 20,529
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.93 %)
General Electric Company .................... 1,051,860 162,775
ELECTRONIC COMPONENTS & ACCESSORIES (6.11 %)
JDS Uniphase Corporation (7a) ............... 382,390 61,684
Texas Instruments Incorporated .............. 1,027,504 99,539
Xilinx Inc. (7a) ............................ 2,018,308 91,770
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (2.06 %)
Lam Research Corporation (7a) .............. 565,866 $ 63,129
Tyco International Ltd. .................... 567,147 22,048
LUMBER & OTHER BUILDING MATERIALS (3.28 %)
Home Depot, Inc. (The) ..................... 1,980,258 135,771
MEDICAL INSTRUMENTS & SUPPLIES (1.57 %)
Medtronic, Inc. ............................ 1,784,440 65,021
MOTION PICTURES (1.56 %)
Time Warner Inc. ........................... 893,879 64,750
PERSONAL CREDIT INSTITUTIONS (2.21 %)
American Express Company ................... 549,394 91,337
PETROLEUM & PETROLEUM PRODUCTS (1.98 %)
Enron Corp. ................................ 1,852,436 82,202
PHARMACEUTICALS (0.63 %)
Pfizer Incorporated ........................ 799,278 25,927
RADIO & TELEVISION BROADCASTING (2.33 %)
AMFM Inc. (7a) (7b) ........................ 1,231,510 96,366
RETAIL TRADE (5.05 %)
Amazon.Com, Inc. (7a) (7b) .................. 1,982,874 150,946
Staples, Inc. (7a) (7b) ..................... 2,803,790 58,179
TELECOMMUNICATIONS (9.52 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ..................... 1,637,041 92,902
Lucent Technologies Inc. ................... 1,383,999 103,540
Nextel Communications, Inc. -
Class A (7a) ............................. 634,630 65,446
NTT Mobile Communication
Network, Inc. ............................ 1,921 73,892
Vodafone Airtouch PLC -
ADR (7b) ................................. 1,185,180 58,666
VARIETY STORES (2.59 %)
Costco Wholesale Corporation (7a) .......... 1,173,749 107,105
WATER TRANSPORTATION (0.65 %)
Royal Caribbean Cruises Ltd. (7b) .......... 545,388 26,894
---------
Total Common Stocks
(cost: $ 1,589,617) .......................................... 3,719,862
---------
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
---------- ---------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (7.80 %)
Fannie Mae
5.50 %, due 01/20/2000 ..................... $ 50,000 $ 49,854
Fannie Mae
5.48 %, due 01/21/2000 ..................... 50,000 49,848
Fannie Mae
5.46 %, due 02/07/2000 ..................... 25,000 24,860
Fannie Mae
5.08 %, due 05/15/2000 ..................... 20,000 19,619
Federal Home Loan Bank
5.66 %, due 03/22/2000 ..................... 20,500 20,239
Federal Home Loan Bank
5.77 %, due 03/23/2000 ..................... 30,000 29,606
Federal Home Loan Bank
5.75 %, due 05/31/2000 ..................... 30,000 29,276
Freddie Mac
5.71 %, due 01/25/2000 ..................... 50,000 49,810
Freddie Mac
5.72 %, due 01/27/2000 ..................... 25,000 24,897
Freddie Mac
5.70 %, due 01/31/2000 ..................... 25,000 24,881
--------
Total Short-Term U.S.
Government Obligations
(cost: $ 322,890) ............................. 322,890
--------
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
COMMERCIAL PAPER (1.75 %)
Household Finance Corporation
4.50 %, due 01/03/2000 .................... $ 72,400 $ 72,382
----------
Total Commercial Paper
(cost: $ 72,382) ............................ 72,382
----------
Total Investment Securities
(cost: $ 1,999,065) ......................... $4,128,268
==========
SUMMARY
Investments, at market value ................ 99.69 % $4,128,268
Other assets in
excess of liabilities ..................... 0.31 % 12,972
-------- ----------
Net assets ................................... 100.00 % $4,141,240
======== ==========
MARKET
PERCENTAGE VALUE
---------- ----------
INVESTMENTS BY COUNTRY:
Japan ....................................... 1.79 % $ 73,892
United States ............................... 98.21 % 4,054,376
-------- -----------
Investments, at market value ................ 100.00 % $ 4,128,268
======== ===========
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 55
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GLOBAL
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
PREFERRED STOCKS (0.90 %)
AUTOMOTIVE (0.33 %)
Porsche AG ................................ 2,331 $ 6,390
INSURANCE (0.57 %)
Marschollek, Lautenschlaeger und
Partner AG ............................. 36,192 10,942
---------
Total Preferred Stocks
(cost: $ 10,391) ......................................... 17,332
---------
COMMON STOCKS (96.13 %)
AMUSEMENT & RECREATION SERVICES (0.23 %)
Disney (Walt) Company (The) ............... 151,120 4,420
BEER, WINE, & DISTILLED BEVERAGES (0.17 %)
Kirin Brewery Company, Limited ............ 309,000 3,251
BUSINESS SERVICES (1.82 %)
Capita Group PLC (The) .................... 101,673 1,856
Securitas AB - Class B .................... 1,379,733 25,018
Sema Group PLC ............................ 455,126 8,190
COMMERCIAL BANKS (2.07 %)
Banco Bilbao Vizcaya, SA .................. 355,904 5,072
Bank of New York
Company, Inc. (The) .................... 152,750 6,110
Bipop-Carire SpA .......................... 142,214 12,585
Firstar Corporation ....................... 48,860 1,032
Fuji Bank, Limited (7b) ................... 1,530,000 14,870
Julius Baer Holding Ltd. .................. 51 154
COMMUNICATION (4.16 %)
Comcast Corporation - Class A ............. 555,540 28,089
NTL Incorporated (7a) (7b) ................ 96,062 11,984
Shaw Communications Inc. -
Class B ................................ 35,424 1,165
TeleWest
Communications PLC (7a) ................ 2,343,542 12,502
United Pan-Europe
Communications NV (7a) ................. 133,881 17,136
Viacom, Inc. - Class B (7a) ............... 153,410 9,272
COMMUNICATIONS EQUIPMENT (12.18 %)
Comverse Technology, Inc. (7a) ............ 98,730 14,291
Koninklijke Philips Electronics NV ........ 145,850 19,843
Koninklijke Philips Electronics NV -
NY Registered Shares ................... 114,002 15,390
Nokia Oyj ................................. 472,722 85,754
Nokia Oyj - Sponsored ADR ................. 304,090 57,777
Nortel Networks Corporation (7b) .......... 310,775 31,388
NTT Data Corporation ...................... 438 10,074
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (9.98 %)
Amdocs, Inc. (7a) (7b) ........................ 69,945 $ 2,413
America Online, Inc. (7a) ..................... 240,280 18,126
Atos SA (7a) .................................. 51,100 8,477
BEA Systems, Inc. (7a) (7b) ................... 88,090 6,161
Cap Gemini SA ................................. 57,038 14,486
Check Point Software
Technologies, Ltd. (7a) (7b) ............... 55,095 10,950
Electronic Data Systems
Corporation ................................ 58,700 3,929
Equant - NY Registered
Shares (7a) (7b) ........................... 58,200 6,518
Equant NV (7a) ................................ 16,210 1,841
Getronics NV .................................. 337,718 26,956
i2 Technologies, Inc. (7a) (7b) ............... 16,610 3,239
Logica PLC .................................... 550,808 14,210
Microsoft Corporation (7a) .................... 489,625 57,164
Phone.com, Inc. (7a) (7b) ..................... 23,995 2,782
Thus PLC (7a) ................................. 358,592 2,248
TietoEnator Corporation ....................... 153,054 9,563
USWeb Corporation (7a) ........................ 29,330 1,303
Verisign, Inc. (7a) ........................... 6,520 1,245
Veritas Software Corporation (7a) ............. 4,375 626
COMPUTER & OFFICE EQUIPMENT (8.51 %)
3Com Corporation (7a) ......................... 48,185 2,265
Cisco Systems, Inc. (7a) ...................... 745,615 79,874
Dell Computer Corporation (7a) ................ 344,150 17,552
EMC Corporation (7a) (7b) ..................... 204,050 22,292
International Business
Machines Corp. ............................. 64,855 7,004
NEC Corporation ............................... 555,000 13,227
Sun Microsystems, Inc. (7a) ................... 279,830 21,669
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.54 %)
Sony Corporation .............................. 165,200 48,992
ELECTRONIC COMPONENTS & ACCESSORIES (4.46 %)
Celestica, Inc. (7a) .......................... 15,336 855
Celestica, Inc. (U.S.) (7a) ................... 216,210 12,000
Fujitsu Limited ............................... 335,000 15,279
JDS Uniphase Corporation (7a) ................. 139,240 22,461
RF Micro Devices, Inc. (7a) ................... 56,430 3,862
Rohm Company Limited .......................... 12,600 5,180
STMicroelectronics NV ......................... 82,997 12,781
STMicroelectronics NV - NY
Registered Shares (7b) ..................... 2,150 326
Texas Instruments Incorporated ................ 135,965 13,172
ENGINEERING & MANAGEMENT SERVICES (0.40 %)
ABB Ltd. (7a) ................................. 62,484 7,645
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
ENVIRONMENTAL SERVICES (0.58 %)
Vivendi SA ............................... 122,988 $ 11,112
FOOD STORES (0.54 %)
Carrefour SA ............................. 56,217 10,374
INDUSTRIAL MACHINERY & EQUIPMENT (2.44 %)
Applied Materials, Inc. (7a) ............. 79,500 10,072
ASM Lithography
Holding NV (7a) (7b) .................. 55,495 6,169
ASM Lithography
Holding NV (U.S.) (7a) ................ 42,415 4,825
Tyco International Ltd. .................. 666,499 25,910
INSTRUMENTS & RELATED PRODUCTS (0.22 %)
PE Corporation - PE Biosystems
Group ................................. 35,540 4,276
INSURANCE (0.30 %)
Tokio Marine & Fire Insurance Co. ........ 495,000 5,790
LEATHER & LEATHER PRODUCTS (0.40 %)
Gucci Groep NV ........................... 579 67
Gucci Groep NV - ADR - NY
Registered Shares ..................... 67,283 7,704
LIFE INSURANCE (0.75 %)
Prudential Corporation PLC ............... 733,465 14,455
MACHINERY, EQUIPMENT & SUPPLIES (3.77 %)
Mannesmann AG ............................ 300,765 72,595
MANAGEMENT SERVICES (0.07 %)
Whittman-Hart, Inc. (7a) ................. 23,985 1,286
MANUFACTURING INDUSTRIES (1.48 %)
Assa Abloy AB - Class B Free ............. 2,032,870 28,603
MEDICAL INSTRUMENTS & SUPPLIES (1.03 %)
Medtronic, Inc. .......................... 352,060 12,828
Synthes-Stratec Inc. -
144A (7a) (7c) ........................ 15,542 6,994
MOTION PICTURES (2.17 %)
Time Warner Inc. ......................... 578,000 41,869
OIL & GAS EXTRACTION (0.66 %)
Petroleo Brasileiro SA -
Petrobras - ADR (7b) .................. 185,895 4,768
Total Fina SA ............................ 59,356 7,926
PERSONAL CREDIT INSTITUTIONS (0.76 %)
American Express Company ................. 87,835 14,603
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
PERSONAL SERVICES (0.63 %)
Hays PLC ................................ 759,239 $ 12,093
PETROLEUM & PETROLEUM PRODUCTS (0.40 %)
Enron Corp. ............................. 174,155 7,728
PHARMACEUTICALS (3.08 %)
Genentech, Inc. (7a) .................... 93,020 12,511
QLT PhotoTherapeutics Inc. (7a) ......... 49,510 2,909
Schering-Plough Corporation ............. 251,395 10,606
Sepracor Inc. (7a) (7b) ................. 46,865 4,648
Takeda Chemical Industries, Ltd. ........ 405,000 20,018
Warner-Lambert Company .................. 62,658 5,134
Yamanouchi
Pharmaceutical Co., Ltd. ............. 101,000 3,529
PRIMARY METAL INDUSTRIES (0.02 %)
Furukawa Electric Co., Ltd. (The) ....... 29,000 440
RADIO & TELEVISION BROADCASTING (1.81 %)
AMFM Inc. (7a) .......................... 60,450 4,730
Clear Channel
Communications, Inc. (7a) ............ 120,815 10,783
EM.TV & MERCHANDISING AG ................ 74,243 4,789
Grupo Televisa SA de CV -
GDR (7a) (7b) ........................ 212,645 14,513
RESTAURANTS (0.49 %)
Compass Group PLC ....................... 692,091 9,503
RETAIL TRADE (1.07 %)
Amazon.Com, Inc. (7a) (7b) .............. 96,455 7,343
Ito-Yokado Co., Ltd. .................... 65,000 7,062
Staples, Inc. (7a) ...................... 303,055 6,288
TELECOMMUNICATIONS (24.88 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ................. 383,240 21,749
China Telecom (Hong Kong)
Limited - ADR (7a) (7b) .............. 579,695 74,527
Colt Telecom Group PLC (7a) ............. 462,704 23,687
Energis PLC (7a) ........................ 562,051 27,002
Lucent Technologies Inc. ................ 185,300 13,863
Nextel Communications, Inc. -
Class A (7a) ......................... 40,950 4,223
Nippon Telegraph & Telephone
Corporation .......................... 337 5,776
NTT Mobile Communication
Network, Inc. ........................ 3,429 131,898
Rogers Communications Inc. -
Class B (7a) ......................... 284,738 6,939
Sonera Oyj .............................. 226,812 15,555
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 57
<PAGE>
SCHEDULE OF INVESTMENTS
WRL JANUS GLOBAL (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
Sprint Corporation
(PCS Group) (7a) (7b) .................. 117,545 $ 12,048
Telecom Italia Mobile SpA ................. 1,157,224 12,900
Telecomunicacoes Brasileiras SA -
Sponsored ADR .......................... 180,465 23,190
Telefonaktiebolaget LM Ericsson -
Class B (7b) ........................... 311,759 20,079
Telefonaktiebolaget LM Ericsson -
ADR .................................... 215,976 14,187
Telefonica SA (7a) ........................ 1,064,233 26,599
Telefonica SA - Sponsored
ADR (7a) (7b) .......................... 34,931 2,753
Telefonos de Mexico SA de CV -
ADR (7b) ............................... 184,715 20,780
Vodafone Airtouch PLC ..................... 441,739 2,189
Vodafone Airtouch PLC -
ADR (7b) ............................... 388,915 19,251
TRANSPORTATION & PUBLIC UTILITIES (0.75 %)
TNT Post Groep NV ......................... 500,984 14,364
WHOLESALE TRADE DURABLE GOODS (1.31 %)
Softbank Corp. ............................ 26,300 25,175
---------
Total Common Stocks
(cost: $ 908,643) ........................................ 1,851,483
---------
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (0.05 %)
Federal Home Loan Bank
1.50 %, due 01/03/2000 .................... $1,000 $ 1,000
---------
Total Short-Term U.S.
Government Obligations
(cost: $ 1,000) ............................................. 1,000
---------
COMMERCIAL PAPER (2.54 %)
Household Finance Corporation
4.50 %, due 01/03/2000 .................. $ 49,000 $ 48,988
----------
Total Commercial Paper
(cost: $ 48,988) ......................................... 48,988
----------
Total Investment Securities
(cost: $ 969,022) ........................................ $1,918,803
==========
SUMMARY
Investments, at market value 99.62 % $1,918,803
Other assets in
excess of liabilities ................... 0.38 % 7,407
---------- ----------
Net assets ................................. 100.00 % $1,926,210
========== ==========
MARKET
PERCENTAGE VALUE
---------- ----------
INVESTMENTS BY COUNTRY:
Canada ..................................... 0.47 % $ 8,959
Finland .................................... 5.78 % 110,872
France ..................................... 2.73 % 52,374
Germany .................................... 4.94 % 94,716
Italy ...................................... 1.33 % 25,485
Japan ...................................... 16.19 % 310,562
Netherlands ................................ 5.17 % 99,157
Spain ...................................... 1.65 % 31,671
Sweden ..................................... 3.84 % 73,701
Switzerland ................................ 0.41 % 7,799
United Kingdom ............................. 6.67 % 127,935
United States .............................. 50.82 % 975,572
------ ----------
Investments, at market value 100.00 % $1,918,803
====== ==========
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
U.S. GOVERNMENT OBLIGATIONS (5.33 %)
U.S. Treasury Note (7b)
6.38 %, due 09/30/2001 ................. $ 11,000 $ 11,021
U.S. Treasury Note (7b)
7.50 %, due 11/15/2001 ................. 11,000 11,237
U.S. Treasury Note (7b)
6.25 %, due 02/28/2002 ................. 11,000 10,994
--------
Total U.S. Government Obligations
(cost: $ 33,694) ...................................... 33,252
--------
CORPORATE DEBT SECURITIES (20.00 %)
AEROSPACE (0.82 %)
Lockheed Martin Corporation
7.45 %, due 06/15/2004 ................. 5,200 5,102
CHEMICALS & ALLIED PRODUCTS (1.50 %)
Procter & Gamble Company (The)
5.25 %, due 09/15/2003 ................. 9,875 9,354
COMMERCIAL BANKS (3.45 %)
Citicorp
7.00 %, due 07/01/2007 ................. 6,600 6,349
First Bank Minnesota
6.88 %, due 04/01/2006 ................. 5,000 4,821
First Union Corporation
7.25 %, due 02/15/2003 ................. 2,600 2,593
Mellon Bank, NA
6.50 %, due 08/01/2005 ................. 5,500 5,259
Morgan (J.P.) & Co. Incorporated
7.63 %, due 09/15/2004 ................. 2,510 2,536
ELECTRIC SERVICES (0.64 %)
Kentucky Utilities Company
8.55 %, due 05/15/2027 ................. 4,000 3,975
ELECTRIC, GAS & SANITARY SERVICES (0.63 %)
Interstate Power Company
8.63 %, due 09/15/2021 ................. 3,825 3,910
ELECTRICAL GOODS (0.34 %)
Avnet, Inc.
6.88 %, due 03/15/2004 ................. 2,199 2,141
GAS PRODUCTION & DISTRIBUTION (1.08 %)
Northern Natural Gas
Company - 144A (7c)
6.88 %, due 05/01/2005 ................. 7,025 6,754
INDUSTRIAL MACHINERY & EQUIPMENT (1.97 %)
Black & Decker Corporation (The)
7.50 %, due 04/01/2003 ................. 5,000 5,000
Tyco International Ltd.
6.38 %, due 06/15/2005 ................. 7,850 7,325
PRINCIPAL MARKET
AMOUNT VALUE
------------ ------------
CORPORATE DEBT SECURITIES (CONTINUED)
INSURANCE (0.58 %)
Chartwell Re Corporation
10.25 %, due 03/01/2004 ................ $ 3,500 $ 3,631
PERSONAL CREDIT INSTITUTIONS (0.97 %)
Associates First Capital Corporation
6.20 %, due 05/16/2005 ................. 6,400 6,085
PERSONAL SERVICES (1.12 %)
Block Financial Corp.
6.75 %, due 11/01/2004 ................. 7,150 6,992
RAILROADS (0.15 %)
Union Pacific Corporation
8.50 %, due 01/15/2017 ................. 903 920
RUBBER & MISC. PLASTIC PRODUCTS (0.21 %)
Hanna (M.A.) Company
9.38 %, due 09/15/2003 ................. 1,250 1,336
TELECOMMUNICATIONS (5.97 %)
Airtouch Communications, Inc.
7.00 %, due 10/01/2003 ................. 6,700 6,647
ALLTEL Corporation
7.25 %, due 04/01/2004 ................. 9,500 9,444
AT&T Corp.
6.00 %, due 03/15/2009 ................. 6,000 5,452
GTE Hawaiian Telephone Company
Incorporated
7.00 %, due 02/01/2006 ................. 2,075 2,003
GTE Hawaiian Telephone Company
Incorporated
7.38 %, due 09/01/2006 ................. 6,150 6,029
Lucent Technologies Inc.
6.90 %, due 07/15/2001 ................. 7,675 7,686
VARIETY STORES (0.57 %)
Wal-Mart Stores, Inc.
6.55 %, due 08/10/2004 ................. 3,600 3,538
--------
Total Corporate Debt Securities
(cost: $ 130,344) .................................... 124,882
--------
CONVERTIBLE BONDS (3.72 %)
ELECTRICAL GOODS (1.44 %)
Kent Electronics Corporation
4.50 %, due 09/01/2004 ................. 10,916 9,033
PRINTING & PUBLISHING (0.87 %)
Tribune Company
2.00 %, due 05/15/2029 ................. 34 5,406
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 59
<PAGE>
SCHEDULE OF INVESTMENTS
WRL LKCM STRATEGIC TOTAL RETURN (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
CONVERTIBLE BONDS (CONTINUED)
RADIO & TELEVISION BROADCASTING (0.89 %)
Clear Channel Communications, Inc.
1.50 %, due 12/01/2002 ...................... $ 5,450 $ 5,573
TELECOMMUNICATIONS (0.52 %)
ITC Deltacom, Inc.
4.50 %, due 05/15/2006 ...................... 2,708 3,236
-------
Total Convertible Bonds
(cost: $ 22,818) ............................................ 23,248
-------
NUMBER OF MARKET
SHARES VALUE
--------- --------
CONVERTIBLE PREFERRED STOCKS (2.46 %)
CHEMICALS & ALLIED PRODUCTS (1.00 %)
Lauder, Estee Companies, Inc.
(The) - TRACES ............................. 72,000 $ 6,233
COMMUNICATION (1.46 %)
DECS Trust V .................................. 317,500 9,128
-------
Total Convertible Preferred Stocks
(cost: $ 11,044) ........................................... 15,361
-------
COMMON STOCKS (67.65 %)
CHEMICALS & ALLIED PRODUCTS (4.24 %)
Colgate-Palmolive Company ..................... 196,800 12,792
Procter & Gamble Company (The) ................ 125,000 13,695
COMMERCIAL BANKS (3.84 %)
Compass Bancshares, Inc. ...................... 310,000 6,917
Mellon Financial Corporation .................. 245,000 8,345
Wells Fargo & Co. ............................. 215,000 8,694
COMMUNICATIONS EQUIPMENT (5.32 %)
Motorola, Inc. (7b) ........................... 75,000 11,044
Nortel Networks Corporation ................... 220,000 22,219
COMPUTER & DATA PROCESSING SERVICES (3.53 %)
IMS Health Incorporated ....................... 360,000 9,788
Microsoft Corporation (7a) .................... 105,000 12,259
COMPUTER & OFFICE EQUIPMENT (5.85 %)
Diebold, Incorporated ......................... 400,000 9,400
EMC Corporation (7a) .......................... 150,000 16,387
Hewlett-Packard Company ....................... 95,000 10,824
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.58 %)
General Electric Company ...................... 104,000 16,094
ELECTRONIC COMPONENTS & ACCESSORIES (0.99 %)
Intel Corporation ............................. 75,000 6,173
NUMBER OF MARKET
SHARES VALUE
---------- --------
COMMON STOCKS (CONTINUED)
ENVIRONMENTAL SERVICES (0.52 %)
Republic Services, Inc. (7a) .................. 224,000 $ 3,220
FABRICATED METAL PRODUCTS (1.10 %)
Gillette Company (The) ........................ 167,000 6,878
FOOD & KINDRED PRODUCTS (0.93 %)
Philip Morris Companies Inc. .................. 250,000 5,797
HOLDING & OTHER INVESTMENT OFFICES (0.77 %)
Crescent Real Estate Equities
Company .................................... 260,000 4,778
INSURANCE (1.38 %)
Allstate Corporation (The) .................... 150,000 3,600
American International
Group, Inc. ................................ 46,250 5,001
LIFE INSURANCE (1.03 %)
American General Corporation .................. 85,000 6,449
LUMBER & OTHER BUILDING MATERIALS (1.43 %)
Home Depot, Inc. (The) ........................ 130,199 8,927
MEDICAL INSTRUMENTS & SUPPLIES (3.00 %)
Medtronic, Inc. ............................... 260,000 9,474
Sybron International
Corporation (7a) ........................... 374,600 9,248
OIL & GAS EXTRACTION (2.53 %)
Nabors Industries, Inc. (7a) .................. 220,000 6,806
Schlumberger Limited .......................... 143,000 8,044
Transocean Sedco Forex Inc. ................... 27,685 933
PAPER & ALLIED PRODUCTS (1.30 %)
Kimberly-Clark Corporation .................... 124,000 8,091
PERSONAL CREDIT INSTITUTIONS (2.28 %)
Associates First Capital
Corporation - Class A ...................... 290,000 7,957
Capital One Financial Corporation ............. 130,000 6,264
PETROLEUM REFINING (4.00 %)
Atlantic Richfield Company .................... 90,000 7,785
BP Amoco PLC - ADR (7b) ....................... 134,186 7,959
Exxon Mobil Corporation ....................... 114,800 9,249
PHARMACEUTICALS (3.60 %)
American Home Products
Corporation ................................ 190,000 7,493
Schering-Plough Corporation ................... 110,000 4,641
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
---------- -------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
SmithKline Beecham PLC -
Sponsored ADR ............................. 80,000 $ 5,155
Teva Pharmaceutical
Industries Ltd. - ADR ..................... 72,000 5,162
PRINTING & PUBLISHING (2.17 %)
Belo (A.H.) Corporation - Class A ............ 300,800 5,734
Harte-Hanks Inc. ............................. 359,200 7,813
RADIO & TELEVISION BROADCASTING (4.78 %)
CBS Corporation (7a) ......................... 325,000 20,779
Infinity Broadcasting Corp. -
Class A (7a) .............................. 250,000 9,047
RADIO, TELEVISION, & COMPUTER STORES (0.32 %)
Tandy Corporation ............................ 40,000 1,968
TELECOMMUNICATIONS (7.06 %)
ALLTEL Corporation ........................... 166,900 13,801
AT&T Corp. ................................... 110,000 5,583
Bell Atlantic Corporation .................... 210,000 12,928
MCI WORLDCOM, Inc. (7a) ...................... 223,500 11,859
TRUCKING & WAREHOUSING (0.84 %)
United Parcel Service, Inc. -
Class B ................................... 76,000 5,244
VARIETY STORES (1.44 %)
Wal-Mart Stores, Inc. ........................ 130,000 8,986
WHOLESALE TRADE NONDURABLE GOODS (0.82 %)
U.S. Foodservice (7a) ........................ 305,600 5,119
-------
Total Common Stocks
(cost: $ 292,491) ......................................... 422,403
-------
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
SHORT-TERM OBLIGATIONS (0.33 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 2,061 on
01/03/2000 ................................. $ 2,061 $ 2,061
--------
Total Short-Term Obligations
(cost: $ 2,061) .......................................... 2,061
--------
Total Investment Securities
(cost: $ 492,452) ........................................ $621,207
========
SUMMARY
Investments, at market value .................. 99.49 % $621,207
Other assets in
excess of liabilities ...................... 0.51 % 3,209
-------- --------
Net assets .................................... 100.00 % $624,416
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 61
<PAGE>
SCHEDULE OF INVESTMENTS
WRL VKAM EMERGING GROWTH
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (93.90 %)
APPAREL & ACCESSORY STORES (0.05 %)
AnnTaylor Stores Corporation (7a) ............ 30,000 $ 1,033
BUSINESS SERVICES (3.24 %)
Exodus Communications,
Inc. (7a) (7b) ............................ 300,000 26,644
Infonet Services Corporation -
Class B (7a) .............................. 20,700 543
Omnicom Group, Inc. .......................... 129,000 12,900
TMP Worldwide Inc. (7a) ...................... 70,000 9,940
Valassis Communications, Inc. (7a) ........... 120,000 5,070
Viant Corporation (7a) ....................... 20,000 1,980
Young & Rubicam Inc. ......................... 70,000 4,953
COMMERCIAL BANKS (0.37 %)
Concord EFS, Inc. (7a) ....................... 180,000 4,635
UnionBanCal Corporation ...................... 60,000 2,366
COMMUNICATION (2.39 %)
Charter Communications, Inc. -
Class A (7a) .............................. 115,800 2,533
Comcast Corporation - Class A ................ 90,000 4,551
Echostar Communications
Corporation (7a) (7b) ..................... 385,000 37,537
UnitedGlobalCom, Inc. -
Class A (7a) (7b) ......................... 15,700 1,109
COMMUNICATIONS EQUIPMENT (11.39 %)
Advanced Fibre
Communications, Inc. (7a) ................. 90,000 4,022
CommScope, Inc. (7a) ......................... 70,000 2,822
Comverse
Technology, Inc. (7a) (7b) ................ 225,000 32,569
General Instruments Corp. (7a) ............... 100,000 8,500
Motorola, Inc. ............................... 85,000 12,516
Nokia Oyj - Sponsored ADR .................... 145,000 27,550
Nortel Networks Corporation (7b) ............. 225,000 22,725
QUALCOMM Incorporated (7a) ................... 540,000 95,107
Scientific-Atlanta, Inc. ..................... 150,000 8,344
Sycamore Networks, Inc. (7a) (7b) ............ 13,000 4,004
COMPUTER & DATA PROCESSING SERVICES (26.99 %)
Adobe Systems Incorporated ................... 290,000 19,503
Amdocs, Inc. (7a) (7b) ....................... 100,000 3,450
America Online, Inc. (7a) .................... 290,000 21,877
Ariba, Inc. (7a) (7b) ........................ 30,000 5,321
BEA Systems, Inc. (7a) (7b) .................. 180,000 12,589
Broadvision, Inc. (7a) ....................... 270,000 45,916
Brocade Communications
Systems, Inc. (7a) (7b) ................... 30,000 5,310
Check Point Software
Technologies, Ltd. (7a) (7b) .............. 80,000 15,900
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
Citrix Systems, Inc. (7a) ..................... 170,000 $20,910
Clarify Inc. (7a) ............................. 73,000 9,198
Electronic Arts, Inc. (7a) .................... 120,000 10,080
i2 Technologies, Inc. (7a) (7b) ............... 40,000 7,800
InfoSpace.com, Inc. (7a) ...................... 15,000 3,210
Legato Systems, Inc. (7a) ..................... 185,000 12,730
Macromedia, Inc. (7a) ......................... 105,000 7,678
Mercury Interactive
Corporation (7a) ........................... 120,000 12,953
Microstrategy
Incorporated (7a) (7b) ..................... 30,000 6,300
Network Appliance, Inc. (7a) .................. 410,000 34,055
Network Solutions, Inc. (7a) .................. 80,000 17,405
Peregrine Systems, Inc. (7a) .................. 60,000 5,051
Phone.com, Inc. (7a) (7b) ..................... 45,000 5,217
Portal Software, Inc. (7a) .................... 30,000 3,086
Rational Software Corporation (7a) ............ 150,000 7,369
Razorfish Inc. (7a) (7b) ...................... 20,000 1,903
RealNetworks, Inc. (7a) ....................... 85,000 10,227
S1 Corporation (7a) ........................... 50,000 3,906
Sapient Corporation (7a) (7b) ................. 69,500 9,795
Scient Corporation (7a) (7b) .................. 30,000 2,593
Siebel Systems, Inc. (7a) (7b) ................ 310,000 26,040
Verisign, Inc. (7a) (7b) ...................... 310,000 59,190
Veritas Software Corporation (7a) ............. 462,000 66,123
Vignette Corporation (7a) (7b) ................ 60,000 9,780
Yahoo! Inc. (7a) .............................. 80,000 34,614
COMPUTER & OFFICE EQUIPMENT (4.16 %)
Adaptec Inc. (7a) ............................. 60,000 2,993
Cisco Systems, Inc. (7a) ...................... 130,966 14,030
EMC Corporation (7a) .......................... 260,000 28,405
Emulex Corporation (7a) ....................... 30,000 3,375
Foundry Networks, Inc. (7a) (7b) .............. 15,000 4,525
Gateway, Inc. (7a) (7b) ....................... 45,000 3,243
Juniper Networks, Inc. (7a) (7b) .............. 20,000 6,800
Sun Microsystems, Inc. (7a) ................... 210,000 16,262
ELECTRIC SERVICES (0.28 %)
Calpine Corporation (7a) ...................... 85,000 5,440
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.01 %)
Gemstar International Group
Limited (7a) ............................... 540,000 38,474
ELECTRONIC COMPONENTS & ACCESSORIES (23.47 %)
Altera Corporation (7a) ....................... 180,000 8,921
Analog Devices, Inc. (7a) ..................... 185,000 17,205
Applied Micro Circuits
Corporation (7a) ........................... 120,000 15,270
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
Broadcom Corporation -
Class A (7a) ............................. 113,000 $30,778
Conexant Systems, Inc. (7a) (7b) ............ 620,000 41,152
Cypress Semiconductor
Corporation (7a) (7b) .................... 75,000 2,428
E-Tek Dynamics, Inc. (7a) ................... 35,000 4,712
Flextronics International
Ltd. (7a) (7b) ........................... 238,000 10,948
Jabil Circuit, Inc. (7a) .................... 60,000 4,380
JDS Uniphase
Corporation (7a) (7b) .................... 580,000 93,560
LSI Logic Corporation (7a) .................. 450,000 30,375
Microchip Technology
Incorporated (7a) ........................ 40,000 2,738
National Semiconductor
Corporation (7a) ......................... 150,000 6,422
PMC-Sierra, Inc. (7a) ....................... 75,000 12,023
QLogic Corporation (7a) ..................... 106,800 17,075
RF Micro Devices, Inc. (7a) ................. 210,000 14,372
Sanmina Corporation (7a) (7b) ............... 70,000 6,991
SDL, Inc. (7a) .............................. 75,000 16,350
Solectron Corporation (7a) .................. 120,000 11,415
STMicroelectronics NV -
NY Registered Shares (7b) ................ 135,000 20,444
Taiwan Semiconductor
Manufacturing Company Ltd. -
Sponsored ADR (7a) (7b) .................. 116,850 5,258
Texas Instruments Incorporated .............. 340,000 32,938
Vishay Intertechnology, Inc. (7a) ........... 60,000 1,898
Vitesse Semiconductor
Corporation (7a) ......................... 410,000 21,499
Xilinx Inc. (7a) ............................ 450,000 20,461
FURNITURE & HOME FURNISHINGS STORES (0.31 %)
Williams-Sonoma, Inc. (7a) .................. 130,000 5,980
INDUSTRIAL MACHINERY & EQUIPMENT (1.89 %)
Applied Materials, Inc. (7a) ................ 75,000 9,502
ASM Lithography Holding NV (7a) ............. 70,000 7,963
Lam Research Corporation (7a) ............... 115,000 12,830
Novellus Systems, Inc. (7a) (7b) ............ 25,000 3,063
Zebra Technologies Corporation -
Class A (7a) ............................. 50,000 2,925
INSTRUMENTS & RELATED PRODUCTS (0.52 %)
KLA-Tencor Corporation (7a) ................. 90,000 10,024
INSURANCE AGENTS, BROKERS & SERVICE (0.15 %)
Marsh & McLennan
Companies, Inc. .......................... 30,000 2,871
LUMBER & OTHER BUILDING MATERIALS (0.97 %)
Home Depot, Inc. (The) ...................... 270,000 18,512
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
MISC. GENERAL MERCHANDISE STORES (0.17 %)
BJ's Wholesale Club, Inc. (7a) .............. 90,000 $ 3,285
OIL & GAS EXTRACTION (1.14 %)
Apache Corporation .......................... 200,000 7,388
BJ Services Company (7a) (7b) ............... 100,000 4,181
Devon Energy Corporation .................... 70,000 2,301
Kerr-McGee Corporation ...................... 115,000 7,130
Vastar Resources, Inc. ...................... 15,000 885
PERSONAL CREDIT INSTITUTIONS (0.25 %)
Capital One Financial
Corporation .............................. 100,000 4,819
PHARMACEUTICALS (2.60 %)
Allergan, Inc. .............................. 150,000 7,463
Biogen, Inc. (7a) ........................... 90,000 7,605
Medimmune, Inc. (7a) ........................ 185,000 30,687
QLT PhotoTherapeutics Inc. (7a) ............. 70,000 4,113
RADIO & TELEVISION BROADCASTING (3.32 %)
CBS Corporation (7a) ........................ 165,000 10,550
Clear Channel
Communications, Inc. (7a) ................ 239,150 21,344
Entercom Communications
Corp. (7a) ............................... 35,000 2,310
Hispanic Broadcasting Corp. (7a) ............ 68,800 6,345
Infinity Broadcasting Corp. -
Class A (7a) ............................. 134,375 4,863
Spanish Broadcasting
System, Inc. (7a) ........................ 25,100 1,010
Univision Communications Inc. -
Class A (7a) ............................. 168,750 17,244
RESEARCH & TESTING SERVICES (0.49 %)
Affymetrix, Inc. (7a) ....................... 30,000 5,091
Cree Research, Inc. (7a) (7b) ............... 50,000 4,269
RETAIL TRADE (1.05 %)
CDW Computer Centers, Inc. (7a) ............. 30,000 2,359
Tiffany & Co. ............................... 200,000 17,850
SECURITY & COMMODITY BROKERS (0.53 %)
Lehman Brothers Holdings Inc. ............... 120,000 10,163
STONE, CLAY & GLASS PRODUCTS (1.08 %)
Corning Incorporated ........................ 160,000 20,630
TELECOMMUNICATIONS (4.98 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ..................... 200,500 11,378
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 63
<PAGE>
SCHEDULE OF INVESTMENTS
WRL VKAM EMERGING GROWTH (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
---------- ----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
McLeodUSA Incorporated -
Class A (7a) (7b) ........................ 190,000 $11,186
Metromedia Fiber
Network, Inc. (7a) (7b) .................. 230,000 11,026
Nextel Communications, Inc. -
Class A (7a) ............................. 180,000 18,563
NEXTLINK Communications, Inc. -
Class A (7a) (7b) ........................ 100,000 8,306
Telephone and Data Systems, Inc ............. 70,000 8,820
VoiceStream Wireless
Corporation (7a) (7b) .................... 102,000 14,516
Western Wireless Corporation -
Class A (7a) ............................. 175,000 11,681
VARIETY STORES (0.10 %)
Family Dollar Stores, Inc. .................. 118,000 1,925
-------
Total Common Stocks
(cost: $ 807,091) ........................................ 1,799,148
---------
PRINCIPAL MARKET
AMOUNT VALUE
----------- ----------
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS (6.16 %)
Federal Home Loan Bank
1.40 %, due 01/03/2000 ................... $ 118,122 $ 118,113
---------
Total Short-Term U.S.
Government Obligations
(cost: $ 118,113) ........................................ 118,113
---------
Total Investment Securities
(cost: $ 925,204) ........................................ $ 1,917,261
===========
SUMMARY
Investments, at market value ................ 100.06 % $ 1,917,261
Liabilities in
excess of other assets ................... (0.06)% (1,236)
-------- -----------
Net assets .................................. 100.00 % $ 1,916,025
======== ===========
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (99.21 %)
BUSINESS SERVICES (8.31 %)
eBay, Inc. (7a) (7b) ......................... 247,500 $30,984
Exodus Communications,
Inc. (7a) (7b) ............................ 584,000 51,867
Omnicom Group, Inc. .......................... 99,700 9,970
COMMERCIAL BANKS (1.79 %)
Citigroup Inc. ............................... 360,250 20,016
COMMUNICATION (4.60 %)
Cablevision Systems
Corporation - Class A (7a) ................ 49,300 3,722
Comcast Corporation - Class A ................ 453,600 22,935
Cox Communications, Inc. -
Class A (7a) .............................. 188,900 9,728
Echostar Communications
Corporation (7a) (7b) ..................... 153,600 14,976
COMMUNICATIONS EQUIPMENT (5.22 %)
Motorola, Inc. (7b) .......................... 237,600 34,987
Nokia Oyj - Sponsored ADR .................... 46,000 8,740
QUALCOMM Incorporated (7a) ................... 82,800 14,583
COMPUTER & DATA PROCESSING SERVICES (28.33 %)
America Online, Inc. (7a) .................... 620,000 46,771
Ariba, Inc. (7a) (7b) ........................ 217,000 38,490
At Home Corporation -
Class A (7a) (7b) ......................... 370,780 15,897
Brocade Communications
Systems, Inc. (7a) (7b) ................... 136,300 24,125
Microsoft Corporation (7a) ................... 448,000 52,304
RealNetworks, Inc. (7a) ...................... 45,400 5,462
Verisign, Inc. (7a) .......................... 112,300 21,442
Vignette Corporation (7a) (7b) ............... 203,800 33,219
Yahoo! Inc. (7a) (7b) ........................ 182,526 78,976
COMPUTER & OFFICE EQUIPMENT (7.20 %)
Cisco Systems, Inc. (7a) ..................... 363,500 38,940
Dell Computer Corporation (7a) ............... 282,600 14,413
Sun Microsystems, Inc. (7a) .................. 350,400 27,134
CONSTRUCTION (1.59 %)
Halliburton Company .......................... 442,550 17,813
ELECTRONIC COMPONENTS & ACCESSORIES (12.24 %)
Altera Corporation (7a) ...................... 286,700 14,210
Broadcom Corporation -
Class A (7a) .............................. 84,200 22,934
Conexant Systems, Inc. (7a) (7b) ............. 100,600 6,677
Intel Corporation ............................ 178,700 14,709
Linear Technology Corporation ................ 152,000 10,878
NUMBER OF MARKET
SHARES VALUE
---------- ----------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
PMC-Sierra, Inc. (7a) ........................ 77,800 $12,472
SDL, Inc. (7a) ............................... 63,600 13,865
Texas Instruments Incorporated ............... 236,200 22,882
Xilinx Inc. (7a) ............................. 401,400 18,251
INDUSTRIAL MACHINERY & EQUIPMENT (4.37 %)
Applied Materials, Inc. (7a) ................. 254,100 32,191
ASM Lithography Holding NV (7a) .............. 146,600 16,676
INSTRUMENTS & RELATED PRODUCTS (1.89 %)
Teradyne, Inc. (7a) .......................... 320,800 21,173
INSURANCE (0.42 %)
American International
Group, Inc. ............................... 43,250 4,676
LUMBER & OTHER BUILDING MATERIALS (3.17 %)
Home Depot, Inc. (The) ....................... 516,750 35,430
MOTION PICTURES (0.89 %)
CNET, Inc. (7a) (7b) ......................... 174,300 9,892
OIL & GAS EXTRACTION (1.08 %)
BJ Services Company (7a) (7b) ................ 100,100 4,185
Nabors Industries, Inc. (7a) ................. 256,000 7,920
PERSONAL CREDIT INSTITUTIONS (0.80 %)
American Express Company ..................... 53,700 8,928
PHARMACEUTICALS (2.12 %)
Amgen Inc. (7a) .............................. 394,200 23,677
RADIO & TELEVISION BROADCASTING (2.31 %)
Clear Channel
Communications, Inc. (7a) ................. 288,723 25,769
RETAIL TRADE (0.93 %)
Amazon.Com, Inc. (7a) (7b) ................... 135,900 10,345
SECURITY & COMMODITY BROKERS (1.08 %)
Morgan Stanley Dean
Witter and Co. ............................ 84,300 12,034
TELECOMMUNICATIONS (8.41 %)
Digital Island, Inc. (7a) (7b) ............... 65,500 6,231
Global Telesystems
Group, Inc. (7a) (7b) ..................... 266,400 9,224
Lucent Technologies Inc. ..................... 248,500 18,591
MCI WORLDCOM, Inc. (7a) ...................... 395,400 20,981
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 65
<PAGE>
SCHEDULE OF INVESTMENTS
WRL ALGER AGGRESSIVE GROWTH (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
McLeodUSA Incorporated -
Class A (7a) (7b) ......................... 168,000 $ 9,891
Nextel Communications, Inc. -
Class A (7a) .............................. 179,000 18,459
Sprint Corporation (FON Group) ............... 73,000 4,914
Sprint Corporation
(PCS Group) (7a) (7b) ..................... 55,300 5,668
VARIETY STORES (2.46 %)
Costco Wholesale Corporation (7a)............. 87,000 7,939
Wal-Mart Stores, Inc. ........................ 282,800 19,549
---------
Total Common Stocks
(cost: $ 604,067) ........................................ 1,108,715
---------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
SHORT-TERM OBLIGATIONS (1.18 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 13,151 on
01/03/2000 ................................. $ 13,148 $ 13,148
----------
Total Short-Term Obligations
(cost: $ 13,148) ......................................... 13,148
---------
Total Investment Securities
(cost: $ 617,215) ........................................ $1,121,863
==========
SUMMARY
Investments, at market value ................ 100.39 % $1,121,863
Liabilities in
excess of other assets ................... (0.39)% (4,352)
-------- ----------
Net assets .................................. 100.00 % $1,117,511
--====== ==========
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
U.S. GOVERNMENT OBLIGATIONS (14.46 %)
U.S. Treasury Bond
12.00 %, due 05/15/2005 ............... $ 3,000 $ 3,729
U.S. Treasury Bond
10.75 %, due 08/15/2005 ............... 500 596
U.S. Treasury Bond
11.25 %, due 02/15/2015 ............... 3,000 4,239
U.S. Treasury Bond
10.63 %, due 08/15/2015 ............... 1,000 1,361
U.S. Treasury Bond
9.88 %, due 11/15/2015 ................ 3,000 3,878
U.S. Treasury Bond
7.25 %, due 05/15/2016 ................ 1,800 1,882
-------
Total U.S. Government Obligations
(cost: $ 16,116) ...................................... 15,685
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.61 %)
Fannie Mae
7.23 %, due 11/17/2014 ................ 1,000 945
Federal Home Loan Bank
6.75 %, due 05/26/2009 ................ 2,000 1,882
-------
Total U.S. Government Agency Obligations
(cost: $ 2,942) ....................................... 2,827
-------
CORPORATE DEBT SECURITIES (11.76 %)
AUTOMOTIVE (1.83 %)
DaimlerChrysler North America
Holding Corporation
6.90 %, due 09/01/2004 ................ 1,000 990
General Motors Corporation
7.70 %, due 04/15/2016 ................ 1,000 999
COMPUTER & OFFICE EQUIPMENT (2.60 %)
International Business
Machines Corp.
7.00 %, due 10/30/2025 ................ 1,000 948
Xerox Capital Europe PLC
5.88 %, due 05/15/2004 ................ 2,000 1,869
FOOD & KINDRED PRODUCTS (0.90 %)
Sara Lee Corporation
6.95 %, due 10/09/2006 ................ 1,000 975
GAS PRODUCTION & DISTRIBUTION (0.91 %)
Duke Capital Corporation
7.50 %, due 10/01/2009 ................ 1,000 990
INDUSTRIAL MACHINERY & EQUIPMENT (0.90 %)
Caterpillar, Inc. ........................
7.25 %, due 09/15/2009 ................ 1,000 980
PRINCIPAL MARKET
AMOUNT VALUE
---------- --------
CORPORATE DEBT SECURITIES (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (0.90 %)
Honeywell International Inc.
7.00 %, due 03/15/2007 ................. $ 1,000 $ 970
PHARMACEUTICALS (0.93 %)
American Home Products
Corporation
7.90 %, due 02/15/2005 ................. 1,000 1,009
SECURITY & COMMODITY BROKERS (1.80 %)
Goldman Sachs Group, Inc. (The)
7.35 %, due 10/01/2009 .................. 1,000 975
Salomon Smith Barney
Holdings Inc. ...........................
6.63 %, due 11/15/2003 .................. 1,000 978
TELECOMMUNICATIONS (0.99 %)
New York Telephone Company
8.63 %, due 11/15/2010 ................... 1,000 1,073
-------
Total Corporate Debt Securities
(cost: $ 13,047) ......................................... 12,756
------
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (70.28 %)
CHEMICALS & ALLIED PRODUCTS (2.64 %)
Du Pont (E.I.) de Nemours and
Company ................................. 43,500 $ 2,866
COMMERCIAL BANKS (9.70 %)
BankAmerica Corporation .................... 52,000 2,610
Citigroup Inc. ............................. 81,000 4,500
Morgan (J.P.) & Co. Incorporated ........... 27,000 3,419
COMPUTER & OFFICE EQUIPMENT (15.13 %)
Hewlett-Packard Company .................... 35,000 3,988
International Business
Machines Corp. .......................... 29,000 3,132
Sun Microsystems, Inc. (7a) ................ 120,000 9,292
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (3.71 %)
General Electric Company ................... 26,000 4,023
FOOD & KINDRED PRODUCTS (2.44 %)
Sara Lee Corporation ....................... 120,000 2,648
INDUSTRIAL MACHINERY & EQUIPMENT (2.94 %)
Tyco International Ltd. .................... 82,000 3,188
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 67
<PAGE>
SCHEDULE OF INVESTMENTS
WRL AEGON BALANCED (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INSURANCE (6.47 %)
American International Group, Inc. ........... 40,000 $ 4,324
St. Paul Companies, Inc. (The) ............... 80,000 2,695
LUMBER & WOOD PRODUCTS (2.95 %)
Georgia-Pacific Group ........................ 63,000 3,197
PETROLEUM REFINING (2.73 %)
Exxon Mobil Corporation ...................... 36,700 2,957
PHARMACEUTICALS (8.34 %)
Abbott Laboratories .......................... 53,000 1,925
Johnson & Johnson ............................ 39,000 3,632
Merck & Co., Inc. ........................... 52,000 3,487
SAVINGS INSTITUTIONS (2.40 %)
Washington Mutual, Inc. ...................... 100,000 2,600
TELECOMMUNICATIONS (3.27 %)
AT&T Corp. (7b) .............................. 70,000 3,553
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
TRUCKING & WAREHOUSING (0.87 %)
Heartland Express, Inc. (7a) ................. 60,000 $ 945
U.S. GOVERNMENT AGENCIES (2.99 %)
Fannie Mae ................................... 52,000 3,247
VARIETY STORES (3.70 %)
Wal-Mart Stores, Inc. ........................ 58,000 4,009
---------
Total Common Stocks
(cost: $ 58,220) ........................................ 76,237
---------
Total Investment Securities
(cost: $ 90,325) ........................................ $ 107,505
=========
SUMMARY
Investments, at market value .............. 99.11 % $ 107,505
Other assets in
excess of liabilities .................. 0.89 % 968
-------- ---------
Net assets ................................ 100.00 % $ 108,473
======== =========
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ---------
CONVERTIBLE PREFERRED STOCKS (9.84 %)
FOOD & KINDRED PRODUCTS (3.47 %)
Ralston Purina Company ...................... 39,000 $1,427
Suiza Capital Trust II ...................... 35,500 1,216
GAS PRODUCTION & DISTRIBUTION (1.52 %)
Coastal Corporation (The) ................... 49,900 1,163
HOLDING & OTHER INVESTMENT OFFICES (1.04 %)
Fleetwood Capital Trust ..................... 23,000 796
OIL & GAS EXTRACTION (2.59 %)
Apache Corporation .......................... 27,500 976
Kerr-McGee Corporation ...................... 30,200 997
SECURITY & COMMODITY BROKERS (1.22 %)
Merrill Lynch & Co., Inc. ...................
IMC Global Inc. - STRYPES ................ 52,100 931
------
Total Convertible Preferred Stocks
(cost: $ 8,311) ......................................... 7,506
------
COMMON STOCKS (83.46 %)
APPAREL PRODUCTS (0.87 %)
V.F. Corporation ............................ 22,000 660
AUTOMOTIVE (0.78 %)
CLARCOR Inc. ................................ 33,300 599
BUSINESS SERVICES (0.99 %)
Pittston Brink's Group ...................... 34,400 757
COMMERCIAL BANKS (1.19 %)
Pacific Century Financial
Corporation .............................. 48,400 904
COMPUTER & DATA PROCESSING SERVICES (1.14 %)
Sterling Software, Inc. (7a) ................ 27,500 866
ELECTRIC SERVICES (5.58 %)
DQE, Inc. ................................... 25,200 873
NSTAR ....................................... 21,632 876
OGE Energy Corp. ............................ 43,500 827
Pinnacle West Capital
Corporation .............................. 21,000 642
Puget Sound Energy, Inc. .................... 53,800 1,042
ELECTRIC, GAS & SANITARY SERVICES (5.13 %)
Conectiv, Inc. .............................. 48,500 815
NiSource Inc. ............................... 63,300 1,131
RGS Energy Group Inc. ....................... 48,300 993
Sierra Pacific Resources .................... 56,500 978
NUMBER OF MARKET
SHARES VALUE
---------- ---------
COMMON STOCKS (CONTINUED)
FOOD & KINDRED PRODUCTS (1.75 %)
General Mills, Inc. ......................... 18,800 $ 672
Sara Lee Corporation ........................ 30,200 666
GAS PRODUCTION & DISTRIBUTION (16.84 %)
Atmos Energy Corporation .................... 38,100 779
El Paso Energy Corp. ........................ 47,100 1,828
Energen Corporation ......................... 65,300 1,179
Keyspan Corporation ......................... 108,600 2,519
MCN Energy Group Inc. ....................... 31,600 751
National Fuel Gas Company ................... 18,600 865
New Jersey Resources
Corporation .............................. 33,000 1,289
NICOR Inc. .................................. 34,900 1,134
Oneok, Inc. ................................. 27,700 696
Peoples Energy Corporation .................. 23,100 774
Questar Corporation ......................... 68,800 1,032
HOLDING & OTHER INVESTMENT OFFICES (14.19 %)
Archstone Communities Trust ................. 36,300 744
AvalonBay Communities, Inc. ................. 30,967 1,063
BRE Properties, Inc. - Class A .............. 26,100 592
Camden Property Trust ....................... 37,100 1,016
CenterPoint Properties
Corporation .............................. 22,200 796
Duke-Weeks Realty Corporation ............... 38,700 755
Equity Office Properties Trust .............. 46,600 1,148
Equity Residential Properties Trust ......... 17,743 757
Gables Residential Trust .................... 51,600 1,238
Health Care Property
Investors, Inc. .......................... 30,500 728
Liberty Property Trust ...................... 27,200 660
Post Properties, Inc. (7b) .................. 34,700 1,327
INDUSTRIAL MACHINERY & EQUIPMENT (4.13 %)
Hussmann International, Inc. ................ 53,200 801
ITT Industries, Inc. ........................ 24,500 819
Tecumseh Products Company -
Class A .................................. 16,700 788
York International Corporation .............. 27,000 741
INSTRUMENTS & RELATED PRODUCTS (1.59 %)
Beckman Coulter Inc. ........................ 23,800 1,211
INSURANCE (3.46 %)
Loews Corporation ........................... 15,200 922
Old Republic International Corp. ............ 64,200 875
St. Paul Companies, Inc. (The) .............. 25,000 842
IRON & STEEL FOUNDRIES (0.77 %)
Precision Castparts Corp. ................... 22,500 591
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 69
<PAGE>
SCHEDULE OF INVESTMENTS
WRL FEDERATED GROWTH & INCOME (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
----------- ------------
COMMON STOCKS (CONTINUED)
LUMBER & WOOD PRODUCTS (2.33 %)
Georgia-Pacific Corporation
(Timber Group) ...................... 50,200 $ 1,236
Louisiana-Pacific Corporation .......... 38,000 542
MEDICAL INSTRUMENTS & SUPPLIES (1.60 %)
DENTSPLY International, Inc. ........... 51,500 1,217
OIL & GAS EXTRACTION (1.16 %)
Kerr-McGee Corporation ................. 14,300 887
PAPER & ALLIED PRODUCTS (2.32 %)
Potlatch Corporation ................... 19,500 870
Westvaco Corporation ................... 27,500 897
PETROLEUM & PETROLEUM PRODUCTS (1.43 %)
Enron Corp. -
Exchangeable Notes (7a) ............. 58,000 1,088
PETROLEUM REFINING (3.90 %)
Conoco Inc. (7b) ....................... 33,800 837
Pennzoil-Quaker State Company .......... 125,100 1,274
Ultramar Diamond Shamrock
Corporation ......................... 38,000 862
PRIMARY METAL INDUSTRIES (2.23 %)
Anglogold Ltd. - ADR (7b) .............. 25,000 642
Worthington Industries, Inc. ........... 64,000 1,060
PRINTING & PUBLISHING (1.03 %)
Banta Corporation ...................... 34,900 787
REAL ESTATE (3.32 %)
AMB Property Corporation ............... 59,400 1,184
ProLogis Trust ......................... 70,000 1,348
RESTAURANTS (1.62 %)
Bob Evans Farms, Inc. .................. 80,000 1,235
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
SAVINGS INSTITUTIONS (1.01 %)
Washington Federal, Inc. ................. 39,000 $ 770
TRANSPORTATION EQUIPMENT (1.19 %)
Trinity Industries, Inc. ................. 32,000 910
WATER TRANSPORTATION (1.03 %)
Alexander & Baldwin, Inc. ................ 34,400 785
WHOLESALE TRADE NONDURABLE GOODS (0.88 %)
Universal Corporation .................... 29,600 675
------
Total Common Stocks
(cost: $ 69,425) ..................................... 63,667
------
PRINCIPAL MARKET
AMOUNT VALUE
-------- --------
SHORT-TERM OBLIGATIONS (3.83 %)
Greenwich Capital
Markets, Inc. (7e)
3.00 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 2,922 on
01/03/2000 ............................ $2,921 $ 2,921
-------
Total Short-Term Obligations
(cost: $ 2,921) ..................................... 2,921
-------
Total Investment Securities
(cost: $ 80,657) ..................................... $74,094
=======
SUMMARY
Investments, at market value ............. 97.13 % $74,094
Other assets in
excess of liabilities ................. 2.87 % 2,186
------ -------
Net assets ............................... 100.00 % $76,280
====== =======
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
CORPORATE DEBT SECURITIES (27.17 %)
AUTO REPAIR, SERVICES & PARKING (3.44 %)
PHH Corporation
7.02 %, due 11/09/2001 .................... $ 9,000 $ 9,003
COMMERCIAL BANKS (3.43 %)
First Union Corporation - Florida
6.18 %, due 02/15/2036 .................... 6,000 5,528
First Union Corporation - North
Carolina
6.18 %, due 02/15/2036 .................... 3,710 3,455
COMPUTER & OFFICE EQUIPMENT (3.41 %)
International Business
Machines Corp. ............................
6.22 %, due 08/01/2027 .................... 1,000 964
Xerox Corporation
6.25 %, due 11/15/2026 .................... 8,260 7,971
ELECTRIC, GAS & SANITARY SERVICES (3.08 %)
Avista Corporation
5.99 %, due 12/10/2007 .................... 9,000 8,059
HOLDING & OTHER INVESTMENT OFFICES (3.93 %)
New Plan Excel Realty Trust, Inc. ............
7.40 %, due 09/15/2009 .................... 11,000 10,270
PERSONAL CREDIT INSTITUTIONS (5.28 %)
Commercial Credit Company
6.63 %, due 06/01/2015 .................... 4,250 4,208
Household Finance Corporation
6.00 %, due 05/01/2004 .................... 10,150 9,617
RADIO & TELEVISION BROADCASTING (1.79 %)
Cox Radio, Inc. ..............................
6.38 %, due 05/15/2005 .................... 5,000 4,681
SECURITY & COMMODITY BROKERS (2.81 %)
Bear Stearns Companies Inc. (The)
6.45 %, due 08/01/2002 .................... 7,500 7,350
--------
Total Corporate Debt Securities
(cost: $ 74,040) ........................................... 71,106
--------
NUMBER OF MARKET
SHARES VALUE
--------- --------
PREFERRED STOCKS (1.60 %)
PRINTING & PUBLISHING (1.60 %)
News Corporation
Limited (The) - ADR (7b) ................. 125,000 $ 4,180
--------
Total Preferred Stocks
(cost: $ 2,818) ........................................... 4,180
--------
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (64.45 %)
AMUSEMENT & RECREATION SERVICES (2.12 %)
Disney (Walt) Company (The) ................. 190,000 $ 5,558
AUTOMOTIVE (4.11 %)
Ford Motor Company .......................... 160,000 8,549
Paccar Inc. ................................. 50,000 2,216
CHEMICALS & ALLIED PRODUCTS (1.26 %)
Du Pont (E.I.) de Nemours and
Company .................................. 50,000 3,294
COMMERCIAL BANKS (11.60 %)
Bank One Corporation ........................ 100,000 3,206
BB&T Corporation ............................ 100,000 2,738
Chase Manhattan
Corporation (The) ........................ 75,000 5,827
FleetBoston Financial Corp. ................. 270,000 9,398
Summit Bancorp .............................. 300,000 9,187
COMPUTER & DATA PROCESSING SERVICES (1.41 %)
Convergys Corporation (7a) .................. 120,000 3,690
COMPUTER & OFFICE EQUIPMENT (1.74 %)
Hewlett-Packard Company ..................... 40,000 4,558
ELECTRIC, GAS & SANITARY SERVICES (1.17 %)
DPL Inc. .................................... 176,500 3,056
ELECTRONIC COMPONENTS & ACCESSORIES (2.20 %)
Intel Corporation ........................... 70,000 5,762
FOOD & KINDRED PRODUCTS (2.44 %)
Philip Morris Companies Inc. ................ 275,000 6,377
FOOD STORES (1.73 %)
Albertson's, Incorporated ................... 140,000 4,515
HEALTH SERVICES (1.68 %)
Columbia/HCA Healthcare
Corporation .............................. 150,000 4,397
HOLDING & OTHER INVESTMENT OFFICES (1.36 %)
Duke-Weeks Realty Corporation ............... 75,000 1,463
RFS Hotel Investors, Inc. ................... 200,000 2,088
HOTELS & OTHER LODGING PLACES (0.95 %)
Host Marriott Corporation (7b) .............. 300,000 2,475
INDUSTRIAL MACHINERY & EQUIPMENT (1.08 %)
Caterpillar, Inc. ........................... 60,000 2,824
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 71
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DEAN ASSET ALLOCATION (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (2.29 %)
Honeywell International Inc. ......... 35,000 $ 2,019
Raytheon Company - Class B ........... 150,000 3,984
INSURANCE (4.73 %)
AFLAC Incorporated ................... 70,000 3,303
Allstate Corporation (The) ........... 75,000 1,800
Ambac Financial Group, Inc. .......... 45,000 2,348
Berkshire Hathaway Inc. -
Class B (7a) ...................... 1,000 1,830
Conseco, Inc. ........................ 173,320 3,098
LIFE INSURANCE (1.76 %)
Lincoln National Corporation ......... 115,200 4,608
MINING (0.92 %)
Potash Corp. of Saskatchewan Inc. .... 50,000 2,409
OIL & GAS EXTRACTION (1.81 %)
Diamond Offshore Drilling, Inc. ...... 155,000 4,737
PETROLEUM REFINING (3.50 %)
Exxon Mobil Corporation .............. 80,000 6,444
Texaco Inc. .......................... 50,000 2,716
PHARMACEUTICALS (1.15 %)
Merck & Co., Inc. .................... 45,000 3,018
RESTAURANTS (1.11 %)
TRICON Global
Restaurants, Inc. (7a) ............ 75,000 2,897
SECURITY & COMMODITY BROKERS (0.67 %)
Alliance Capital Management
Holding L.P. ...................... 59,000 1,766
STONE, CLAY & GLASS PRODUCTS (1.12 %)
Minnesota Mining & Manufacturing
Company ........................... 30,000 2,936
NUMBER OF MARKET
SHARES VALUE
---------- --------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (5.25 %)
AT&T Corp. (7b) ....................... 125,000 $ 6,344
Bell Atlantic Corporation ............. 120,000 7,387
U.S. GOVERNMENT AGENCIES (4.89 %)
Fannie Mae ............................ 175,000 10,926
Freddie Mac ........................... 40,000 1,883
WHOLESALE TRADE DURABLE GOODS (0.40 %)
Miami Computer Supply
Corporation (7a) ................... 28,000 1,040
-------
Total Common Stocks
(cost: $ 171,128) .................................. 168,671
-------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
COMMERCIAL PAPER (3.27 %)
Fairway Financial
Corporation - 144A (7c)
7.10 %, due 01/04/2000 ............ $ 600 $ 600
Ford Motor Credit Company
6.28 %, due 01/07/2000 ............ 3,000 2,997
General Motors Acceptance
Corporation
6.50 %, due 01/10/2000 ............ 3,066 3,061
Hasbro Inc.
6.60 %, due 01/04/2000 ............ 1,900 1,899
-------
Total Commercial Paper
(cost: $ 8,557) .................................... 8,557
-------
Total Investment Securities
(cost: $ 256,543) .................................. $252,514
========
SUMMARY
Investments, at market value ......... 96.49 % $252,514
Other assets in
excess of liabilities ............. 3.51 % 9,193
-------- --------
Net assets ........................... 100.00 % $261,707
======== ========
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (100.17 %)
APPAREL & ACCESSORY STORES (7.36 %)
Abercrombie & Fitch Co. -
Class A (7a) ............................... 135,000 $ 3,602
Claire's Stores, Inc. ......................... 147,000 3,288
APPAREL PRODUCTS (5.78 %)
Jones Apparel Group, Inc. (7a) ................ 114,400 3,103
Tommy Hilfiger Corporation (7a) ............... 99,000 2,308
BUSINESS SERVICES (1.88 %)
Appnet Systems, Inc. (7a) ..................... 31,000 1,356
GenesisIntermedia.com, Inc. (7a) .............. 70,000 407
CHEMICALS & ALLIED PRODUCTS (2.11 %)
Procter & Gamble Company (The) ................ 18,000 1,972
COMMERCIAL BANKS (7.30 %)
Bank One Corporation .......................... 25,000 802
BankAmerica Corporation ....................... 25,658 1,288
Chase Manhattan
Corporation (The) .......................... 23,000 1,787
Citigroup Inc. ................................ 53,250 2,959
COMMUNICATIONS EQUIPMENT (8.78 %)
ADC Telecommunications,
Incorporated (7a) .......................... 50,000 3,627
ANTEC Corporation (7a) (7b) ................... 53,000 1,935
Ciena Corporation (7a) ........................ 5,000 288
Nortel Networks Corporation ................... 13,000 1,313
QUALCOMM Incorporated (7a) .................... 6,000 1,057
COMPUTER & DATA PROCESSING SERVICES (9.21 %)
America Online, Inc. (7a) ..................... 43,000 3,243
Compuware Corporation (7a) .................... 58,000 2,161
Microsoft Corporation (7a) .................... 17,000 1,985
Networks Associates, Inc. (7a) ................ 46,000 1,228
CONSTRUCTION (1.12 %)
Halliburton Company ........................... 26,000 1,047
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.65 %)
General Electric Company ...................... 16,000 2,476
ELECTRONIC COMPONENTS & ACCESSORIES (11.45 %)
Altera Corporation (7a) ....................... 49,000 2,429
Jabil Circuit, Inc. (7a) ...................... 43,000 3,139
JDS Uniphase Corporation (7a) ................. 4,000 645
PMC-Sierra, Inc. (7a) ......................... 15,000 2,405
Vitesse Semiconductor
Corporation (7a) ........................... 21,000 1,101
Xilinx Inc. (7a) .............................. 22,000 1,000
HEALTH SERVICES (0.20 %)
NovaCare Inc. (7a) ............................ 1,000,000 188
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (0.86 %)
Honeywell International Inc. ................. 14,000 $ 808
MEDICAL INSTRUMENTS & SUPPLIES (0.77 %)
Respironics, Inc. (7a) ....................... 91,000 725
OIL & GAS EXTRACTION (6.69 %)
Diamond Offshore Drilling, Inc. .............. 64,000 1,956
Friede Goldman Halter, Inc. (7a) ............. 91,200 633
Noble Drilling Corporation (7a) .............. 36,000 1,179
Transocean Sedco Forex Inc. .................. 74,000 2,493
PHARMACEUTICALS (7.62 %)
Lilly (ELI) and Company ...................... 25,000 1,663
Merck & Co., Inc. ............................ 29,000 1,945
Pfizer Incorporated .......................... 57,000 1,849
SmithKline Beecham PLC -
Sponsored ADR ............................. 26,000 1,675
RETAIL TRADE (1.38 %)
Amazon.Com, Inc. (7a) ........................ 17,000 1,294
SAVINGS INSTITUTIONS (0.94 %)
Washington Mutual, Inc. ...................... 34,000 884
SECURITY & COMMODITY BROKERS (0.68 %)
National Discount
Brokers (7a) (7b) ......................... 24,000 633
SHOE STORES (6.78 %)
Genesco Inc. (7a) (7b) ....................... 488,100 6,345
TELECOMMUNICATIONS (13.87 %)
AT&T Corp. ................................... 57,500 2,918
Lucent Technologies Inc. ..................... 17,000 1,272
MCI WORLDCOM, Inc. (7a) ...................... 60,000 3,184
Qwest Communications
International Inc. (7a) (7b) .............. 55,000 2,365
U S West, Inc. ............................... 45,000 3,239
VARIETY STORES (2.74 %)
Costco Wholesale Corporation (7a) ............ 13,000 1,186
Kmart Corporation (7a) ....................... 137,000 1,379
-------
Total Common Stocks
(cost: $ 89,054) ............................................ 93,764
-------
Total Investment Securities
(cost: $ 89,054) ............................................ $ 93,764
=========
SUMMARY
Investments, at market value ................. 100.17 % $ 93,764
Liabilities in
excess of other assets .................... (0.17)% (156)
------ ---------
Net assets ................................... 100.00 % $ 93,608
====== =========
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 73
<PAGE>
SCHEDULE OF INVESTMENTS
WRL NWQ VALUE EQUITY
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (91.31 %)
AEROSPACE (1.81 %)
Textron Inc. .................................. 15,100 $ 1,158
United Technologies Corporation 20,344 1,322
AIR TRANSPORTATION (3.20 %)
Delta Air Lines, Inc. ......................... 88,000 4,384
CHEMICALS & ALLIED PRODUCTS (3.84 %)
Air Products and Chemicals, Inc. 59,600 2,000
Praxair, Inc. ................................. 65,000 3,270
COMMERCIAL BANKS (12.05 %)
Bank of New York
Company, Inc. (The) ........................ 42,000 1,680
BankAmerica Corporation ....................... 67,000 3,363
Chase Manhattan
Corporation (The) .......................... 36,800 2,859
First Union Corporation ....................... 98,800 3,242
Wells Fargo & Co. ............................. 133,400 5,394
COMMUNICATION (2.50 %)
NTL Incorporated (7a) (7b) .................... 27,500 3,431
COMPUTER & DATA PROCESSING SERVICES (0.91 %)
Galileo International, Inc. ................... 41,700 1,248
COMPUTER & OFFICE EQUIPMENT (4.35 %)
Hewlett-Packard Company ....................... 31,800 3,623
Pitney Bowes Inc. ............................. 40,000 1,933
Xerox Corporation ............................. 18,000 408
CONSTRUCTION (4.00 %)
Halliburton Company ........................... 136,200 5,482
DEPARTMENT STORES (1.77 %)
Federated Department
Stores, Inc. (7a) .......................... 48,000 2,427
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.31 %)
Thomas & Betts Corporation .................... 13,300 424
ELECTRONIC COMPONENTS & ACCESSORIES (3.97 %)
Texas Instruments Incorporated ................ 56,200 5,444
FABRICATED METAL PRODUCTS (2.00 %)
Fortune Brands, Inc. .......................... 83,000 2,744
FOOD & KINDRED PRODUCTS (3.26 %)
Philip Morris Companies Inc. .................. 192,900 4,473
HEALTH SERVICES (2.33 %)
Columbia/HCA Healthcare
Corporation ................................ 108,900 3,192
NUMBER OF MARKET
SHARES VALUE
--------- ----------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (5.99 %)
Deere & Company ............................... 39,450 $ 1,711
Ingersoll-Rand Company ........................ 56,500 3,111
Weatherford
International Inc. (7a) .................... 85,000 3,395
INSTRUMENTS & RELATED PRODUCTS (3.16 %)
Agilent
Technologies, Inc. (7a) (7b) ............... 47,500 3,672
Emerson Electric Co. .......................... 11,600 666
INSURANCE (8.51 %)
Aetna, Inc. ................................... 53,000 2,958
Allstate Corporation (The) .................... 87,800 2,107
Cigna Corporation ............................. 29,000 2,336
Travelers Property Casualty Corp. 67,300 2,305
UnumProvident Corporation ..................... 61,244 1,964
INSURANCE AGENTS, BROKERS & SERVICE (2.42 %)
Hartford Financial Services
Group, Inc. ................................ 70,000 3,316
MORTGAGE BANKERS AND BROKERS (1.01 %)
Countrywide Credit
Industries, Inc. ........................... 55,000 1,389
MOTION PICTURES (2.64 %)
Time Warner Inc. .............................. 50,000 3,622
OIL & GAS EXTRACTION (4.01 %)
Noble Affiliates, Inc. ........................ 32,500 697
Noble Drilling Corporation (7a) ............... 107,600 3,524
Union Pacific Resources
Group Inc. ................................. 100,000 1,275
PETROLEUM REFINING (1.36 %)
Conoco Inc. - Class B ......................... 75,000 1,866
SECURITY & COMMODITY BROKERS (1.47 %)
Bear Stearns Companies Inc. (The) 47,131 2,015
TELECOMMUNICATIONS (11.30 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ....................... 56,000 3,178
CoreComm Limited (7a) (7b) .................... 100,800 5,985
MediaOne Group Inc. (7a) ...................... 82,600 6,344
U.S. GOVERNMENT AGENCIES (2.39 %)
Fannie Mae .................................... 52,400 3,272
WHOLESALE TRADE NONDURABLE GOODS (0.75 %)
Unilever NV - NY Shares ....................... 19,000 1,034
--------
Total Common Stocks
(cost: $ 109,182) ....................................... 125,243
--------
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- ---------
SHORT-TERM OBLIGATIONS (7.55 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 10,352 on
01/03/2000 .............. $ 10,350 $ 10,350
--------
Total Short-Term Obligations
(cost: $ 10,350) ........... 10,350
--------
Total Investment Securities
(cost: $ 119,532) .......... $135,593
========
SUMMARY
Investments, at market value 98.86 % $135,593
Other assets in
excess of liabilities ... 1.14 % 1,565
-------- --------
Net assets ................. 100.00 % $137,158
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 75
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
---------- ---------
CORPORATE DEBT SECURITIES (0.02 %) (7F)
TRANSPORTATION & PUBLIC UTILITIES (0.02 %)
BG Transco Holdings PLC (7d)
7.06 %, due 12/14/2009 ................ $1 $2
BG Transco Holdings PLC (7d)
4.19 %, due 12/14/2022 ................ 1 2
BG Transco Holdings PLC
7.00 %, due 12/16/2024 ................ 1 2
--
Total Corporate Debt Securities
(cost: $ 6) ........................................... 6
--
NUMBER OF MARKET
SHARES VALUE
--------- -------
PREFERRED STOCKS (0.11 %)
CHEMICALS & ALLIED PRODUCTS (0.11 %)
Henkel KGaA .............................. 572 $38
---
Total Preferred Stocks
(cost: $ 43) ......................................... 38
---
COMMON STOCKS (100.08 %)
AEROSPACE (0.65 %)
Aerospatiale Matra (7a) (7b) .............. 3,268 72
British Aerospace PLC ..................... 22,251 147
AMUSEMENT & RECREATION SERVICES (1.14 %)
Airtours PLC .............................. 18,086 111
Granada Group PLC ......................... 21,846 221
Namco Limited ............................. 800 52
APPAREL PRODUCTS (0.23 %)
Giordano International Limited ............ 74,000 76
AUTOMOTIVE (1.69 %)
Autoliv Inc. .............................. 5,438 159
DaimlerChrysler AG ........................ 1,290 100
Mazda Motor Corporation ................... 27,000 120
Mitsubishi Corporation .................... 15,000 116
Suzuki Motor Corporation .................. 5,000 73
BEER, WINE, & DISTILLED BEVERAGES (0.19 %)
Diageo PLC ................................ 7,945 64
BEVERAGES (0.03 %)
Panamerican Beverages, Inc. -
Class A ................................ 494 10
BUSINESS CREDIT INSTITUTIONS (0.15 %)
Promise Co., Ltd. (7a) .................... 1,000 51
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (0.76 %)
Sema Group PLC ........................... 5,200 $ 94
WPP Group PLC ............................ 10,100 160
CHEMICALS & ALLIED PRODUCTS (3.09 %)
Akzo Nobel NV ............................ 6,000 301
Asahi Chemical Industry Co., Ltd. ........ 5,000 26
Bridgestone Corporation .................. 3,000 66
Clariant AG - Registered Shares .......... 500 238
Kao Corporation .......................... 1,592 45
Rhodia SA ................................ 1,833 41
Shin-Etsu Chemical Co., Ltd. ............. 5,000 215
Sumitomo Bakelite Company
Limited (7b) .......................... 12,000 107
COMMERCIAL BANKS (9.86 %)
Allied Irish Banks PLC ................... 14,600 166
Asahi Bank, Ltd. ......................... 6,764 42
Banca Intesa SpA ......................... 23,691 96
Banco Comercial Portugues SA -
Registered Shares ..................... 8,607 48
Bank of Ireland .......................... 13,369 106
Banque Nationale de Paris SA ............. 607 56
Bayerische Hypo-und
Vereinsbank AG ........................ 6,387 436
Credit Suisse Group ...................... 565 112
DBS Group Holdings Ltd. .................. 7,115 117
Deutsche Bank AG ......................... 2,569 217
Fuji Bank, Limited ....................... 4,000 39
HSBC Holdings PLC ........................ 11,603 163
ING Groep NV ............................. 10,565 638
Kookmin Bank ............................. 3,752 59
Lloyds/TSB PLC ........................... 19,117 239
Merita Oyj - Exchanged
Shares (7a) ........................... 18,077 106
Sakura Bank, Limited ..................... 15,000 87
Sanwa Bank, Limited ...................... 8,000 97
Societe Generale - Class A ............... 183 43
Sumitomo Bank, Limited ................... 6,000 82
Svenska Handelsbanken AB -
Class A ............................... 20,655 260
Uniao de Bancos Brasileiros SA -
Sponsored GDR ......................... 3,294 99
COMMUNICATION (1.69 %)
Deutsche Telecom AG ...................... 6,500 463
Reed International PLC ................... 12,858 96
Saatchi & Saatchi PLC .................... 1,569 9
COMMUNICATIONS EQUIPMENT (5.87 %)
Comverse Technology, Inc. (7a) ........... 1,412 204
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (CONTINUED)
ECI Telecom Ltd. (7b) ......................... 6,251 $ 198
Koninklijke Philips Electronics NV ............ 4,862 661
Nokia Oyj ..................................... 3,752 681
Nortel Networks Corporation ................... 2,237 226
COMPUTER & DATA PROCESSING SERVICES (1.94 %)
ATI Technologies Inc. (7a) .................... 4,680 62
Cap Gemini SA ................................. 1,329 338
Trend Micro, Incorporated (7a) ................ 1,000 253
CONSTRUCTION (0.31 %)
Suez Lyonnaise Des Eaux SA .................... 651 104
ELECTRIC SERVICES (0.71 %)
Korea Electric Power
Corporation - ADR .......................... 5,100 85
Tokyo Electric
Power Co., Inc. (The) ...................... 1,000 27
VEBA AG ....................................... 2,627 128
ELECTRICAL GOODS (0.50 %)
Johnson Electric Holdings Limited ............. 26,400 169
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.59 %)
Canon Inc. .................................... 9,000 358
Mabuchi Motor Co., Ltd. ....................... 800 140
Matsushita Communication
Industrial Co. ............................. 1,000 264
Nintendo Co., Ltd. ............................ 500 82
Sony Corporation .............................. 2,200 652
Sumitomo Electric Industries, Ltd. ............ 4,000 46
ELECTRONIC COMPONENTS & ACCESSORIES (8.48 %)
Celestica, Inc. (7a) .......................... 2,672 149
Chartered Semiconductor
Manufacturing Ltd. - ADR (7a) .............. 358 26
Electrocomponents PLC ......................... 11,059 122
Fujitsu Limited ............................... 8,000 365
Hirose Electric Co., Ltd. ..................... 800 179
Marconi PLC ................................... 5,200 92
Minebea Co., Ltd. ............................. 14,000 240
Murata Manufacturing
Company, Ltd. .............................. 1,000 235
Rohm Company Limited .......................... 1,000 411
STMicroelectronics NV ......................... 1,368 211
Taiwan Semiconductor
Manufacturing Company Ltd. -
Sponsored ADR (7a) (7b) .................... 10,317 464
Tokyo Electron Limited ........................ 1,000 137
Toshiba Corporation ........................... 28,000 214
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
ENGINEERING & MANAGEMENT SERVICES (1.95 %)
ABB Ltd. (7a) ................................. 1,115 $ 136
Corus Group PLC ............................... 68,774 179
SKF AB - Class B .............................. 12,400 302
VA Technologie AG ............................. 581 38
ENVIRONMENTAL SERVICES (0.43 %)
Rentokil Initial PLC .......................... 15,600 57
Vivendi SA .................................... 969 88
FOOD STORES (3.19 %)
Carrefour SA .................................. 2,775 512
Etablissements Economicques du
Casino Guichard-Perrachon SA ............... 2,975 341
Jeronimo Martins SGPS SA ...................... 341 9
Koninklijke Ahold NV .......................... 1,945 58
Somerfield PLC ................................ 42,066 60
Tesco PLC ..................................... 30,025 91
GAS PRODUCTION & DISTRIBUTION (0.18 %)
BG Group PLC .................................. 9,560 62
HOLDING & OTHER INVESTMENT OFFICES (3.57 %)
Daiwa Securities Co., Ltd. .................... 9,000 141
Desc SA de CV - ADR (7a) ...................... 2,622 44
Desc SA de CV - Series B (7a) ................. 18,244 15
Grupo Carso SA de CV - Sponsored
ADR (7a) (7b) .............................. 8,590 86
Grupo Financiero Banamex Accival,
SA de CV - Class O (7a) .................... 42,064 169
Hutchison Whampoa Limited ..................... 14,000 204
Investor AB - Class B ......................... 664 9
Invik & Company AB - Class B .................. 163 19
Kinnevik AB - Class B ......................... 3 (7g)
Lagardere S.C.A ............................... 6,298 343
Montedison SpA ................................ 1,076 2
Sun Hung Kai Properties Limited ............... 16,000 167
INDUSTRIAL MACHINERY & EQUIPMENT (2.16 %)
Invensys PLC .................................. 48,063 262
Komatsu Ltd. .................................. 20,000 92
Siemens AG - Registered Shares ................ 2,900 371
INSTRUMENTS & RELATED PRODUCTS (0.28 %)
Ricoh Company, Ltd. ........................... 5,000 94
INSURANCE (2.52 %)
CGU PLC ....................................... 10,833 175
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 77
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE/SCOTTISH EQUITABLE INTERNATIONAL EQUITY (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Muenchener Rueckversicherungs-
Gesellschaft AG .......................... 768 $ 195
Muenchener Rueckversicherungs-
Gesellschaft AG - warrants ............... 19 1
Royal & Sun Alliance Insurance
Group PLC ................................ 8,958 68
Skandia Forsakrings AB ...................... 13,200 399
Zurich Allied AG ............................ 15 9
INSURANCE AGENTS, BROKERS & SERVICE (1.64 %)
Axa ......................................... 2,683 374
Pohjola Group Insurance
Corporation - Class B .................... 676 41
Sampo Insurance Company Ltd. -
Class A .................................. 3,927 137
LIFE INSURANCE (0.27 %)
Prudential Corporation PLC .................. 4,550 90
LUMBER & CONSTUCTION MATERIALS (1.20 %)
CRH PLC ..................................... 18,588 402
MACHINERY, EQUIPMENT & SUPPLIES (6.27 %)
Alstom SA ................................... 5,982 200
Fuji Machine Mfg. Co., Ltd. ................. 1,000 81
Kawasaki Heavy Industries, Ltd. ............. 90,000 120
Mannesmann AG ............................... 4,550 1,098
Schneider SA ................................ 7,691 604
MANAGEMENT SERVICES (0.36 %)
CGI Group Inc. (7a) ......................... 2,832 121
MANUFACTURING INDUSTRIES (0.64 %)
FKI PLC ..................................... 22,599 88
Metallgesellschaft AG ....................... 6,405 128
MEDICAL INSTRUMENTS & SUPPLIES (0.80 %)
Fresenius Medical Care AG ................... 1,872 160
Nycomed Amersham PLC ........................ 17,233 107
METAL CANS & SHIPPPING CONTAINERS (0.34 %)
Kawasaki Steel Corporation (7a) ............. 64,000 115
MINING (0.32 %)
WMC Limited ................................. 19,400 107
OIL & GAS EXTRACTION (3.47 %)
Coflexip SA - ADR ........................... 1,920 73
ENI SpA ..................................... 17,600 97
Repsol SA ................................... 3,327 77
Saipem SpA .................................. 25,138 91
Shell Transport & Trading
Company PLC (The) ........................ 9,794 81
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION (CONTINUED)
Total Fina SA ................................ 5,593 $ 747
PETROLEUM REFINING (0.30 %)
BP Amoco PLC ................................. 10,000 101
PHARMACEUTICALS (4.33 %)
Aventis SA ................................... 8,910 518
Celltech PLC (7a) ............................ 8,200 70
Fujisawa Pharmaceutical Company
Limited ................................... 3,000 73
Glaxo Wellcome PLC ........................... 4,330 122
Novartis AG - Registered Shares .............. 39 57
Novo Nordisk A/S - Class B ................... 1,089 145
Pharmacia & Upjohn, Inc. ..................... 90 4
Roche Holding AG ............................. 170 202
Takeda Chemical Industries, Ltd. ............. 2,000 99
Teva Pharmaceutical Industries
Ltd. - ADR ................................ 2,299 165
PRIMARY METAL INDUSTRIES (2.94 %)
China Steel Corporation - GDR ................ 4,050 61
Ispat International NV - NY
Registered Shares ......................... 2,016 33
Nippon Steel Corporation ..................... 49,000 115
Pohang Iron & Steel Co., Ltd. ................ 800 88
Pohang Iron & Steel Co., Ltd. -
ADR (7b) .................................. 619 22
Preussag AG .................................. 11,986 668
PRINTING & PUBLISHING (1.61 %)
VNU NV ....................................... 10,263 540
RADIO & TELEVISION BROADCASTING (0.49 %)
Grupo Televisa SA de CV -
GDR (7a) (7b) ............................. 2,423 165
RADIO, TELEVISION, & COMPUTER STORES (0.15 %)
Synnex Technology International
Corporation - GDR - 144A (7c) ............. 1,849 49
RAILROADS (0.40 %)
East Japan Railway Co. ....................... 15 81
Railtrack Group PLC .......................... 3,222 54
REAL ESTATE (0.19 %)
British Land Company PLC ..................... 9,850 65
RESTAURANTS (0.21 %)
Compass Group PLC ............................ 5,270 72
RETAIL TRADE (1.54 %)
Castorama Dubois
Investissements SCA ....................... 1,100 335
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
----------- --------
COMMON STOCKS (CONTINUED)
RETAIL TRADE (CONTINUED)
Mitsukoshi, Ltd. (7a) ................... 966 $ 3
Vendex NV ............................... 2,624 70
Yamada Corporation ...................... 1,000 109
RUBBER & MISC. PLASTIC PRODUCTS (0.47 %)
Compagnie Generale des
Etablissements Michelin - Class B .... 4,016 158
STONE, CLAY & GLASS PRODUCTS (0.25 %)
Nippon Sheet Glass
Company, Limited ..................... 16,000 83
TELECOMMUNICATIONS (12.62 %)
British Telecommunications PLC .......... 6,827 167
Cable & Wireless
Communications PLC (7a) .............. 17,146 247
Cable & Wireless Optus Ltd. (7a) ........ 28,035 94
Cable & Wireless PLC .................... 3,155 53
France Telecom SA ....................... 2,300 304
Hellenic Telecommunications
Organization SA ...................... 3,260 77
Hellenic Telecommunications
Organization SA - ADR ................ 3,626 43
Hikari Tsushin, Inc. .................... 100 201
Korea Telecom Corporation ............... 407 64
Korea Telecom Corporation -
Sponsored ADR ........................ 1,234 92
NetCom AB - Class B (7a) ................ 1,283 90
Nippon Telegraph &
Telephone Corporation ................ 50 86
Sonera Oyj .............................. 11,879 815
Telecom Italia Mobile SpA ............... 4,413 49
Telecom Italia SpA ...................... 7,510 106
Telecom Italia SpA - Class NC ........... 87 1
Telecomunicacoes Brasileiras SA -
Sponsored ADR ........................ 90 12
Telefonaktiebolaget LM Ericsson -
Class B .............................. 13,970 900
Telefonica SA (7a) ...................... 15,111 378
Telekomunikacja Polska SA -
GDR - 144A (7a) (7c) ................. 14,905 95
Telstra Corporation Limited ............. 20,650 112
Vodafone Airtouch PLC ................... 50,000 248
TEXTILE MILL PRODUCTS (0.28 %)
Toray Industries, Inc. .................. 24,000 93
TOBACCO PRODUCTS (0.21 %)
Imperial Tobacco Group PLC .............. 8,500 70
NUMBER OF MARKET
SHARES VALUE
----------- --------
COMMON STOCKS (CONTINUED)
TRANSPORTATION & PUBLIC UTILITIES (0.66 %)
Brambles Industries Limited ........... 8,074 $ 223
WATER TRANSPORTATION (0.30 %)
IHC Caland NV ......................... 2,768 101
WHOLESALE TRADE DURABLE GOODS (1.66 %)
Mitsui & Co., Ltd. .................... 11,000 77
Softbank Corp. ........................ 500 479
--------
Total Common Stocks
(cost: $ 25,729) .................................... 33,605
--------
Total Investment Securities
(cost: $ 25,778) .................................... $ 33,649
========
SUMMARY
Investments, at market value .......... 100.21 % $ 33,649
Liabilities in
excess of other assets ............. (0.21)% (70)
-------- --------
Net assets ............................ 100.00 % $ 33,579
======== ========
MARKET
PERCENTAGE VALUE
--------- -------
INVESTMENTS BY COUNTRY:
Australia ............................. 1.59 % $ 535
Austria ............................... 0.11 % 38
Canada ................................ 0.98 % 331
Denmark ............................... 0.43 % 145
Finland ............................... 5.29 % 1,780
France ................................ 15.39 % 5,177
Germany ............................... 11.90 % 4,004
Greece ................................ 0.23 % 77
Hong Kong ............................. 2.32 % 779
Ireland ............................... 2.01 % 675
Italy ................................. 1.31 % 441
Japan ................................. 20.69 % 6,961
Korea ................................. 0.63 % 211
Mexico ................................ 0.55 % 184
Netherlands ........................... 7.67 % 2,580
Portugal .............................. 0.17 % 57
Singapore ............................. 0.35 % 117
Spain ................................. 1.35 % 455
Sweden ................................ 6.36 % 2,140
Switzerland ........................... 2.24 % 755
United Kingdom ........................ 11.74 % 3,951
United States ......................... 6.69 % 2,256
-------- -------
Investments, at market value .......... 100.00 % $33,649
======== =======
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 79
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE U.S. EQUITY
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (92.42 %)
AEROSPACE (1.66 %)
Boeing Company (The) .................... 4,321 $ 180
Textron Inc. ............................ 22,877 1,754
United Technologies Corporation ......... 16,015 1,041
AIR TRANSPORTATION (0.67 %)
Continental Airlines, Inc. -
Class B (7a) ......................... 12,609 560
Delta Air Lines, Inc. ................... 12,979 647
AMUSEMENT & RECREATION SERVICES (0.59 %)
Disney (Walt) Company (The) ............. 36,188 1,058
AUTOMOTIVE (0.28 %)
Ford Motor Company ...................... 9,420 503
BEVERAGES (1.48 %)
Anheuser-Busch
Companies, Inc. (7i) ................. 15,129 1,072
PepsiCo, Inc. (7i) ...................... 44,815 1,580
BUSINESS SERVICES (2.61 %)
Catalina Marketing
Corporation (7a) ..................... 8,266 957
Equifax Inc. ............................ 63,272 1,491
Interpublic Group of
Companies, Inc. ...................... 36,283 2,093
Reuters Group PLC -
Sponsored ADR ........................ 1,787 144
CHEMICALS & ALLIED PRODUCTS (1.92 %)
Airgas, Inc. (7a) ....................... 7,002 67
Avon Products, Inc. ..................... 11,904 393
Colgate-Palmolive Company ............... 3,259 212
Du Pont (E.I.) de Nemours
and Company .......................... 5,235 345
PPG Industries, Incorporated ............ 10,180 637
Procter & Gamble Company (The) .......... 16,296 1,785
COMMERCIAL BANKS (6.50 %)
Bank of New York
Company, Inc. (The) .................. 5,658 226
BankAmerica Corporation ................. 31,485 1,580
Chase Manhattan
Corporation (The) .................... 14,153 1,100
Citigroup Inc. .......................... 106,370 5,910
FleetBoston Financial Corp. ............. 22,518 784
PNC Bank Corp. .......................... 7,631 340
State Street Corporation ................ 7,058 516
U.S. Bancorp ............................ 16,519 393
Wells Fargo & Co. ....................... 19,704 797
COMMUNICATION (2.26 %)
Comcast Corporation - Class A ........... 35,651 1,803
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMMUNICATION (CONTINUED)
NTL Incorporated (7a) (7b) ............. 18,030 $2,249
COMMUNICATIONS EQUIPMENT (1.58 %)
Nortel Networks Corporation ............ 28,045 2,833
COMPUTER & DATA PROCESSING SERVICES (5.77 %)
Automatic Data Processing, Inc. ........ 28,826 1,553
Computer Sciences
Corporation (7a) .................... 6,370 603
First Data Corporation ................. 65,794 3,244
Microsoft Corporation (7a) ............. 42,373 4,947
COMPUTER & OFFICE EQUIPMENT (7.82 %)
Cisco Systems, Inc. (7a) ............... 46,088 4,937
Dell Computer Corporation (7a) ......... 14,361 732
EMC Corporation (7a) ................... 25,086 2,741
Hewlett-Packard Company ................ 3,059 349
International Business
Machines Corp. ...................... 12,120 1,309
Pitney Bowes Inc. ...................... 21,665 1,047
Sun Microsystems, Inc. (7a) ............ 16,488 1,277
Unisys Corporation (7a) ................ 42,064 1,343
Xerox Corporation ...................... 12,753 289
CONSTRUCTION (0.38 %)
Halliburton Company .................... 17,064 687
DEPARTMENT STORES (0.52 %)
Federated Department
Stores, Inc. (7a) ................... 17,048 862
Sears, Roebuck and Co. ................. 2,550 78
DRUG STORES & PROPRIETARY STORES (0.42 %)
CVS Corporation ........................ 17,047 681
Omnicare, Inc. ......................... 5,347 64
ELECTRIC SERVICES (1.44 %)
Duke Energy Corporation ................ 20,132 1,009
Edison International ................... 39,046 1,023
FPL Group, Inc. ........................ 6,374 273
Texas Utilities Company ................ 7,891 281
ELECTRIC, GAS & SANITARY SERVICES (0.57 %)
CMS Energy Corporation .................. 15,274 476
New Century Energies Inc. ............... 18,072 549
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.54 %)
Harmon Industries, Inc. ................. 2,297 129
Hubbell Incorporated - Class B .......... 30,533 832
ELECTRONIC COMPONENTS & ACCESSORIES (4.23 %)
Analog Devices, Inc. (7a) ............... 20,753 1,930
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 (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
Intel Corporation ........................... 47,113 $3,878
Molex Incorporated - Class A ................ 28,256 1,279
Texas Instruments Incorporated .............. 5,093 493
ENVIRONMENTAL SERVICES (0.37 %)
Waste Management Inc. ....................... 38,954 670
FABRICATED METAL PRODUCTS (0.25 %)
Gillette Company (The) ...................... 3,819 157
Masco Corporation ........................... 11,712 297
FOOD & KINDRED PRODUCTS (1.73 %)
Bestfoods ................................... 6,366 335
General Mills, Inc. ......................... 11,456 410
H.J. Heinz Company .......................... 8,146 324
Philip Morris Companies Inc. ................ 10,261 238
Ralston Purina Company ...................... 40,086 1,117
Sara Lee Corporation ........................ 30,556 674
GAS PRODUCTION & DISTRIBUTION (0.44 %)
El Paso Energy Corp. ........................ 20,366 790
HEALTH SERVICES (0.27 %)
Lincare Holdings Inc. (7a) .................. 13,868 481
INDUSTRIAL MACHINERY & EQUIPMENT (2.83 %)
Applied Materials, Inc. (7a) ................ 18,254 2,313
Baker Hughes, Inc. .......................... 12,982 273
Deere & Company ............................. 5,347 232
Dover Corporation ........................... 49,904 2,264
INSTRUMENTS & RELATED PRODUCTS (2.14 %)
Emerson Electric Co. ........................ 26,946 1,546
Honeywell International Inc. (7i) ........... 39,806 2,296
INSURANCE (2.55 %)
American International
Group, Inc. .............................. 16,714 1,807
Berkshire Hathaway Inc. -
Class B (7a) ............................. 493 902
Chicago Title Corporation ................... 1,909 88
Chubb Corporation ........................... 9,463 533
Loews Corporation ........................... 7,260 441
St. Paul Companies, Inc. (The) .............. 10,431 351
UnumProvident Corporation ................... 14,018 449
INSURANCE AGENTS, BROKERS & SERVICE (0.67 %)
Hartford Financial Services
Group, Inc. .............................. 11,447 542
Marsh & McLennan
Companies, Inc. .......................... 6,823 653
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (0.65 %)
AXA Financial, Inc. ....................... 12,583 $ 426
Lincoln National Corporation .............. 9,680 387
Reliastar Financial Corp. ................. 8,920 350
LUMBER & OTHER BUILDING MATERIALS (1.88 %)
Home Depot, Inc. (The) .................... 31,317 2,147
Lowe's Companies, Inc. .................... 20,623 1,232
LUMBER & WOOD PRODUCTS (0.22 %)
Rayonier, Inc. ............................ 8,019 387
MEDICAL INSTRUMENTS & SUPPLIES (0.36 %)
DENTSPLY International, Inc. .............. 7,129 168
Sybron International
Corporation (7a) ....................... 19,091 471
METAL MINING (0.60 %)
Barrick Gold Corporation .................. 24,182 428
Newmont Mining Corporation ................ 26,707 654
MINING (0.39 %)
Martin Marietta Materials, Inc. ........... 16,980 696
MORTGAGE BANKERS AND BROKERS (0.06 %)
Countrywide Credit
Industries, Inc. ....................... 4,455 112
MOTION PICTURES (0.38 %)
Time Warner Inc. .......................... 9,369 679
OIL & GAS EXTRACTION (1.95 %)
Anadarko Petroleum Corporation ............ 7,508 256
Burlington Resources Inc. ................. 12,796 423
Nabors Industries, Inc. (7a) .............. 6,364 197
Schlumberger Limited ...................... 27,812 1,564
Transocean Sedco Forex Inc. ............... 5,384 181
Unocal Corporation ........................ 26,098 876
PAPER & ALLIED PRODUCTS (0.16 %)
Mead Corporation (The) .................... 6,482 282
PERSONAL CREDIT INSTITUTIONS (1.38 %)
American Express Company (7i) ............. 9,431 1,568
Associates First Capital
Corporation - Class A .................. 32,840 901
PETROLEUM REFINING (4.40 %)
BP Amoco PLC - ADR (7b) ................... 5,602 332
Chevron Corporation ....................... 5,090 441
Conoco Inc. - Class B ..................... 19,497 485
Exxon Mobil Corporation ................... 56,054 4,516
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 81
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GE U.S. EQUITY (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
PETROLEUM REFINING (CONTINUED)
Royal Dutch Petroleum Company -
NY Registered Shares .............. 23,118 $1,397
Texaco Inc. .......................... 5,093 277
USX-Marathon Group ................... 17,857 441
PHARMACEUTICALS (10.10 %)
Abbott Laboratories .................. 35,013 1,271
Allergan, Inc. ....................... 5,109 254
American Home Products
Corporation ....................... 8,437 333
Amgen Inc. (7a) ...................... 17,829 1,071
Bristol-Myers Squibb Co. ............. 42,960 2,757
Cardinal Health, Inc. ................ 52,678 2,522
Johnson & Johnson .................... 21,919 2,041
Lilly (ELI) and Company .............. 8,897 592
Merck & Co., Inc. .................... 57,387 3,849
Pfizer Incorporated .................. 14,259 463
Pharmacia & Upjohn, Inc. ............. 18,715 842
Schering-Plough Corporation .......... 21,885 923
Shire Pharmaceuticals Group
PLC - ADR (7a) (7b) ............... 3,310 96
Warner-Lambert Company ............... 3,438 282
Watson Pharmaceuticals, Inc. (7a) .... 22,583 809
PRINTING & PUBLISHING (1.35 %)
Gannett Co., Inc. .................... 21,489 1,753
Knight-Ridder, Inc. (7b) ............. 11,202 667
RAILROADS (0.66 %)
Burlington Northern
Santa Fe Corp. .................... 30,552 741
Canadian Pacific Limited ............. 20,361 439
RESTAURANTS (0.84 %)
McDonald's Corporation ............... 37,152 1,498
RETAIL TRADE (0.10 %)
Schein, Henry, Inc. (7a) (7b) ........ 13,112 175
SECURITY & COMMODITY BROKERS (1.47 %)
Goldman Sachs Group, Inc. (The) ...... 5,855 551
Morgan Stanley Dean
Witter and Co. .................... 14,637 2,089
TELECOMMUNICATIONS (8.00 %)
ALLTEL Corporation ................... 3,813 315
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
AT&T Corp. (7i) ...................... 19,348 $ 982
AT&T Corp. - Liberty Media
Group - Class A (7a) .............. 36,911 2,095
Bell Atlantic Corporation (7i) ....... 12,221 752
Global Crossing Ltd. (7a) ............ 16,551 828
GTE Corporation ...................... 25,462 1,797
Lucent Technologies Inc. ............. 17,794 1,331
MCI WORLDCOM, Inc. (7a) .............. 11,456 608
SBC Communications Inc. .............. 56,900 2,774
Sprint Corporation (FON Group) ....... 16,603 1,118
U S West, Inc. ....................... 11,718 844
Vodafone Airtouch PLC -
ADR (7b) .......................... 18,206 901
TRANSPORTATION EQUIPMENT (0.17 %)
General Dynamics Corporation ......... 5,846 308
TRUCKING & WAREHOUSING (0.16 %)
United Parcel Service, Inc. -
Class B ........................... 4,133 285
U.S. GOVERNMENT AGENCIES (1.31 %)
Fannie Mae ........................... 37,485 2,340
VARIETY STORES (3.10 %)
Costco Wholesale
Corporation (7a) .................. 6,111 558
Dayton Hudson Corporation ............ 32,498 2,387
Wal-Mart Stores, Inc. ................ 37,686 2,605
WATER TRANSPORTATION (0.24 %)
Carnival Corporation ................. 8,905 426
--------
Total Common Stocks
(cost: $ 142,134) ................................ 165,674
--------
Total Investment Securities
(cost: $ 142,134) ................................ $165,674
========
SUMMARY
Investments, at market value ........ 92.42 % $165,674
Other assets in
excess of liabilities ............. 7.58 % 13,593
-------- --------
Net assets .......................... 100.00 % $179,267
======== ========
See Notes to the Financial Statements, which is an integral part of this report.
82 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL THIRD AVENUE VALUE
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (97.40 %)
COMMUNICATIONS EQUIPMENT (0.54 %)
Vertex Communications
Corporation (7a) ........................... 5,000 $ 103
COMPUTER & DATA PROCESSING SERVICES (3.47 %)
NCR Corporation (7a) .......................... 17,600 667
COMPUTER & OFFICE EQUIPMENT (7.29 %)
3Com Corporation (7a) ......................... 29,800 1,401
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.26 %)
Electro Scientific
Industries, Inc. (7a) ...................... 5,000 365
Evans & Sutherland Computer
Corporation (7a) ........................... 6,000 69
ELECTRONIC COMPONENTS & ACCESSORIES (9.48 %)
AVX Corporation ............................... 30,000 1,498
Planar Systems, Inc. (7a) ..................... 48,800 323
HEALTH SERVICES (1.09 %)
Prime Medical Services, Inc. (7a) ............. 23,000 210
HOLDING & OTHER INVESTMENT OFFICES (4.43 %)
Capital Southwest Corporation ................. 1,500 90
Imperial Credit Commercial
Mortgage Investment Corp. .................. 41,000 466
Koger Equity, Inc. ............................ 17,500 295
INDUSTRIAL MACHINERY & EQUIPMENT (30.07 %)
Alamo Group Inc. .............................. 9,000 90
Electroglas, Inc. (7a) ........................ 64,500 1,637
FSI International, Inc. (7a) .................. 79,900 919
Silicon Valley Group, Inc. (7a) ............... 51,100 907
SpeedFam International, Inc. (7a) ............. 45,300 586
Tecumseh Products Company -
Class A .................................... 9,200 434
Tecumseh Products Company -
Class B .................................... 6,900 288
Toyoda Automatic Loom
Works, Ltd. ................................ 44,000 919
INSTRUMENTS & RELATED PRODUCTS (0.60 %)
Analogic Corporation .......................... 3,500 116
INSURANCE (20.89 %)
Chiyoda Fire & Marine Insurance
Co., Ltd. .................................. 165,000 452
Enhance Financial Services
Group, Inc. ................................ 27,800 452
Financial Security Assurance
Holdings ................................... 15,000 782
First American Financial
Corp. (The) ................................ 17,000 211
LaSalle Re Holdings Limited ................... 12,500 206
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Leucadia National Corporation ................. 17,900 $ 414
MBIA, Inc. .................................... 3,000 158
Mitsui Marine & Fire Insurance
Co., Ltd. .................................. 152,000 902
Risk Capital Holdings, Inc. (7a) .............. 34,600 437
LIFE INSURANCE (1.49 %)
Liberty Financial Companies, Inc. ............. 12,500 287
MEDICAL INSTRUMENTS & SUPPLIES (2.51 %)
Protocol Systems, Inc. (7a) ................... 53,700 483
OIL & GAS EXTRACTION (7.57 %)
Nabors Industries, Inc. (7a) .................. 47,000 1,454
PAPER & ALLIED PRODUCTS (0.95 %)
St. Joe Company ............................... 7,500 182
REAL ESTATE (0.77 %)
Avatar Holdings Inc. (7a) ..................... 3,500 63
Forest City Enterprises, Inc. -
Class A .................................... 3,000 84
RESEARCH & TESTING SERVICES (0.19 %)
Pharmaceutical Product
Development, Inc. (7a) ..................... 3,000 36
SAVINGS INSTITUTIONS (0.06 %)
Home Federal Bancorp (7a) ..................... 14,182 12
WATER TRANSPORTATION (3.74 %)
Alexander & Baldwin, Inc. ..................... 31,500 719
--------
Total Common Stocks
(cost: $ 17,338) ............................................ 18,717
--------
Total Investment Securities
(cost: $ 17,338) ............................................ $ 18,717
========
SUMMARY
Investments, at market value ................. 97.40 % $ 18,717
Other assets in
excess of liabilities ...................... 2.60 % 500
-------- --------
Net assets .................................... 100.00 % $ 19,217
======== ========
MARKET
PERCENTAGE VALUE
--------- ---------
INVESTMENTS BY COUNTRY:
Japan ......................................... 12.14 % $ 2,273
United States ................................. 87.86 % 16,444
------ -------
Investments, at market value .................. 100.00 % $18,717
====== =======
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 83
<PAGE>
SCHEDULE OF INVESTMENTS
WRL J.P. MORGAN REAL ESTATE SECURITIES
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (96.19 %)
HOLDING AND OTHER INVESTMENT OFFICES (81.78 %)
APARTMENTS (21.95 %)
Archstone Communities Trust ....... 5,700 $ 117
AvalonBay Communities, Inc. ....... 1,600 55
BRE Properties, Inc. - Class A .... 1,200 27
Camden Property Trust ............. 2,800 77
Equity Residential Properties Trust 4,943 210
Gables Residential Trust .......... 700 17
Post Properties, Inc. ............. 2,100 80
Summit Properties Inc. ............ 2,000 36
United Dominion Realty
Trust, Inc. ..................... 8,400 83
DIVERSIFIED (8.13 %)
Duke-Weeks Realty Corporation ..... 1,594 31
Liberty Property Trust ............ 2,000 49
National Golf Properties, Inc. .... 4,500 89
Spieker Properties, Inc. .......... 2,500 91
HOTELS (1.59 %)
MeriStar Hospitality Corporation .. 3,200 51
MANUFACTURED HOMES (0.22 %)
Manufactured Home
Communities, Inc. ............... 300 7
OFFICE PROPERTY (18.42 %)
Cousins Properties Incorporated ... 3,500 119
Crescent Real Estate Equities
Company ......................... 6,100 112
Equity Office Properties Trust .... 11,200 275
Mack-Cali Realty Corporation ...... 3,200 83
REGIONAL MALL (10.97 %)
CBL & Associates Properties, Inc. . 800 17
General Growth Properties, Inc. ... 1,000 28
Macerich Company, (The) ........... 4,500 94
Mills Corporation, (The) .......... 2,800 50
Simon Property Group, Inc. ........ 4,800 110
Urban Shopping Centers, Inc. ...... 1,900 52
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
HOLDING AND OTHER INVESTMENT OFFICES (CONTINUED)
SHOPPING CENTER (13.47 %)
Developers Diversified Realty
Corporation ................... 1,200 $ 15
Federal Realty Investment Trust . 3,700 70
IRT Property Company ............ 5,800 45
Kimco Realty Corporation ........ 1,800 61
Regency Realty Corporation ...... 2,100 42
Vornado Realty Trust ............ 6,100 198
STORAGE (5.69 %)
Public Storage, Inc. ............ 8,000 182
WAREHOUSE (1.34 %)
CenterPoint Properties
Corporation ................... 1,200 43
REAL ESTATE (14.41 %)
OFFICE PROPERTY (8.22 %)
Arden Realty, Inc. .............. 4,700 94
Boston Properties, Inc. ......... 1,700 53
Cornerstone Properties Inc. ..... 7,900 116
REGIONAL MALL (1.06 %)
Westfield America, Inc. ......... 2,800 34
WAREHOUSE (5.13 %)
ProLogis Trust .................. 8,500 164
------
Total Common Stocks
(cost: $ 3,322) ............................. 3,077
------
Total Investment Securities
(cost: $ 3,322) ............................. $3,077
======
SUMMARY
Investments, at market value .... 96.19 % $3,077
Other assets in
excess of liabilities .......... 3.81 % 122
-------- ------
Net assets ....................... 100.00 % $3,199
======== ======
See Notes to the Financial Statements, which is an integral part of this report.
84 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS GROWTH
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
OMMON STOCKS (98.47 %)
AMUSEMENT & RECREATION SERVICES (0.69 %)
Disney (Walt) Company (The) .................. 780 $ 23
Harrah's Entertainment, Inc. (7a) ............ 1,270 34
AUTOMOTIVE (0.89 %)
Ford Motor Company ........................... 790 42
General Motors Corporation ................... 420 31
BEVERAGES (2.11 %)
Coca-Cola Company (The) ...................... 1,840 107
PepsiCo, Inc. ................................ 1,880 66
BUSINESS SERVICES (1.41 %)
CheckFree Holdings
Corporation (7a) .......................... 600 63
Valassis Communications, Inc. (7a) ........... 1,255 53
CHEMICALS & ALLIED PRODUCTS (4.51 %)
Avon Products, Inc. .......................... 1,770 58
Colgate-Palmolive Company .................... 2,220 144
Dow Chemical Company (The) ................... 270 36
Du Pont (E.I.) de Nemours
and Company ............................... 778 51
Procter & Gamble Company (The) ............... 740 81
COMMERCIAL BANKS (5.22 %)
Bank of New York
Company, Inc. (The) ....................... 440 18
BankAmerica Corporation ...................... 1,060 53
Citigroup Inc. ............................... 2,065 115
MBNA Corporation ............................. 3,200 87
State Street Corporation ..................... 1,550 113
Wells Fargo & Co. ............................ 1,040 42
COMMUNICATION (2.96 %)
Cablevision Systems
Corporation - Class A (7a) ................ 620 47
Comcast Corporation - Class A ................ 1,530 77
Crown Castle
International Corp. (7a) .................. 1,860 60
Echostar Communications
Corporation (7a) .......................... 600 59
COMMUNICATIONS EQUIPMENT (3.30 %)
General Instruments Corp. (7a) ............... 410 35
Nortel Networks Corporation .................. 870 88
QUALCOMM Incorporated (7a) ................... 840 148
COMPUTER & DATA PROCESSING SERVICES (11.57 %)
America Online, Inc. (7a) .................... 1,610 121
At Home Corporation -
Class A (7a) .............................. 804 34
Automatic Data Processing, Inc. .............. 690 37
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
First Data Corporation ...................... 2,010 $ 99
Galileo International, Inc. ................. 570 17
Microsoft Corporation (7a) .................. 2,960 345
Network Solutions, Inc. (7a) ................ 130 28
Oracle Corporation (7a) ..................... 1,060 119
Verisign, Inc. (7a) ......................... 400 76
Yahoo! Inc. (7a) ............................ 170 74
COMPUTER & OFFICE EQUIPMENT (7.73 %)
Cisco Systems, Inc. (7a) .................... 2,060 221
Dell Computer Corporation (7a) .............. 790 40
EMC Corporation (7a) ........................ 1,010 110
International Business
Machines Corp. ........................... 1,150 124
Sun Microsystems, Inc. (7a) ................. 1,790 139
DRUG STORES & PROPRIETARY STORES (1.16 %)
CVS Corporation ............................. 570 23
Walgreen Co. ................................ 2,460 72
ELECTRIC SERVICES (1.65 %)
AES Corporation (The) (7a) .................. 1,800 135
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (4.06 %)
General Electric Company .................... 2,160 333
ELECTRONIC COMPONENTS & ACCESSORIES (2.77 %)
Intel Corporation ........................... 2,160 178
Texas Instruments Incorporated .............. 510 49
FINANCE (3.25 %)
Standard & Poor's 500 Depositary
Receipt .................................. 1,826 267
FOOD & KINDRED PRODUCTS (2.07 %)
Nabisco Group Holdings ...................... 2,770 29
Philip Morris Companies Inc. ................ 1,120 26
Ralston Purina Company ...................... 2,460 69
Wrigley (Wm) Jr. Company .................... 560 46
HOTELS & OTHER LODGING PLACES (0.52 %)
Marriott International, Inc. -
Class A .................................. 1,350 43
INSURANCE (1.28 %)
Ambac Financial Group, Inc. ................. 400 21
American International
Group, Inc. .............................. 777 84
LIFE INSURANCE (0.41 %)
Hartford Life, Inc. - Class A ............... 420 18
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 85
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS GROWTH (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (CONTINUED)
Nationwide Financial
Services, Inc. - Class A ............... 580 $ 16
LUMBER & OTHER BUILDING MATERIALS (0.98 %)
Home Depot, Inc. (The) .................... 1,170 80
LUMBER & WOOD PRODUCTS (0.20 %)
Weyerhaeuser Company ...................... 220 16
MANUFACTURING INDUSTRIES (0.09 %)
Hasbro Inc. ............................... 350 7
MOTION PICTURES (1.94 %)
Time Warner Inc. .......................... 2,190 159
OIL & GAS EXTRACTION (1.23 %)
Schlumberger Limited ...................... 1,450 82
Transocean Sedco Forex Inc. ............... 281 9
Unocal Corporation ........................ 300 10
PAPER & ALLIED PRODUCTS (0.22 %)
International Paper Company ............... 320 18
PERSONAL SERVICES (0.89 %)
Cendant Corp. (7a) ........................ 2,210 59
Service Corporation International ......... 2,040 14
PETROLEUM & PETROLEUM PRODUCTS (0.21 %)
Enron Corp. ............................... 380 17
PETROLEUM REFINING (4.48 %)
Atlantic Richfield Company ................ 220 19
Chevron Corporation ....................... 440 38
Exxon Mobil Corporation ................... 2,395 193
Royal Dutch Petroleum Company -
NY Registered Shares ................... 1,510 91
Texaco Inc. ............................... 480 26
PHARMACEUTICALS (8.11 %)
American Home Products
Corporation ............................ 1,850 73
Amgen Inc. (7a) ........................... 380 23
Bristol-Myers Squibb Co. .................. 2,150 138
Johnson & Johnson ......................... 720 67
Lilly (ELI) and Company ................... 610 41
Merck & Co., Inc. ......................... 970 65
Pfizer Incorporated ....................... 2,890 94
Schering-Plough Corporation ............... 1,130 48
Warner-Lambert Company .................... 1,410 116
PRIMARY METAL INDUSTRIES (0.27 %)
Alcoa Inc. ................................ 260 22
PRINTING & PUBLISHING (2.73 %)
Belo (A.H.) Corporation - Class A ......... 2,490 47
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
PRINTING & PUBLISHING (CONTINUED)
Central Newspapers, Inc. - Class A 760 $ 30
Gannett Co., Inc. ......................... 620 51
New York Times Company (The) -
Class A ................................ 1,040 51
Tribune Company ........................... 510 28
Ziff-Davis Inc. (7a) ...................... 1,090 17
RADIO & TELEVISION BROADCASTING (2.80 %)
AMFM Inc. (7a) ............................ 700 55
CBS Corporation (7a) ...................... 1,460 93
Clear Channel
Communications, Inc. (7a) .............. 327 29
Infinity Broadcasting Corp. -
Class A (7a) ........................... 1,460 53
RADIO, TELEVISION, & COMPUTER STORES (0.30 %)
Tandy Corporation ......................... 510 25
REAL ESTATE (0.49 %)
Starwood Hotels & Resorts
Worldwide .............................. 1,690 40
RESTAURANTS (0.40 %)
McDonald's Corporation .................... 830 33
SECURITY & COMMODITY BROKERS (0.40 %)
Schwab (Charles)
Corporation (The) ...................... 850 33
STONE, CLAY & GLASS PRODUCTS (0.89 %)
Corning Incorporated ...................... 160 21
Minnesota Mining &
Manufacturing Company .................. 530 52
TELECOMMUNICATIONS (9.57 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ................... 3,080 175
GTE Corporation ........................... 1,510 107
Lucent Technologies Inc. .................. 1,550 116
MCI WORLDCOM, Inc. (7a) ................... 2,505 133
MediaOne Group Inc. (7a) .................. 1,560 120
SBC Communications Inc. ................... 2,220 108
Sprint Corporation
(PCS Group) (7a) ....................... 240 25
U.S. GOVERNMENT AGENCIES (2.24 %)
Fannie Mae ................................ 1,520 95
Freddie Mac ............................... 1,890 89
VARIETY STORES (2.47 %)
Wal-Mart Stores, Inc. ..................... 2,930 203
-----
Total Common Stocks
(cost: $ 7,055) ...................................... 8,078
-----
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM OBLIGATIONS (0.45 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 37 on
01/03/2000 .............. $ 37 $ 37
------
Total Short-Term Obligations
(cost: $ 37) ........................... 37
------
Total Investment Securities
(cost: $ 7,092) ........................ $8,115
======
SUMMARY
Investments, at market value 98.92 % $8,115
Other assets in
excess of liabilities ... 1.08 % 89
-------- ------
Net assets ................. 100.00 % $8,204
======== ======
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 87
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (75.75 %)
AIR TRANSPORTATION (0.61 %)
Alaska Air Group, Inc. (7a) ................... 200 $ 7
America West Holdings
Corporation - Class B (7a) ................. 300 6
Amtran, Inc. (7a) ............................. 200 4
AMUSEMENT & RECREATION SERVICES (1.76 %)
Argosy Gaming Company (7a) .................... 300 5
Aztar Corporation (7a) ........................ 400 4
Boyd Gaming Corporation (7a) .................. 300 2
Dover Downs Entertainment, Inc. ............... 300 6
Hollywood Park, Inc. (7a) ..................... 200 4
Station Casinos, Inc. (7a) .................... 200 4
Westwood One, Inc. (7a) ....................... 300 22
Wyndham International, Inc. -
Class A (7a) ............................... 700 2
APPAREL & ACCESSORY STORES (0.22 %)
Cato Corporation (The) - Class A .............. 300 4
Deb Shops, Inc. ............................... 100 2
APPAREL PRODUCTS (0.18 %)
Phillips-Van Heusen Corporation ............... 400 3
Pillowtex Corporation ......................... 300 2
AUTO REPAIR, SERVICES & PARKING (0.43 %)
Avis Rent A Car, Inc. (7a) .................... 200 5
Dollar Thrifty Automotive
Group, Inc. (7a) ........................... 200 5
Rollins Truck Leasing Corp. ................... 200 2
AUTOMOTIVE (0.79 %)
CLARCOR Inc. .................................. 200 4
Fleetwood Enterprises, Inc. ................... 100 2
Monaco Coach Corporation (7a) ................. 50 1
National R.V. Holdings, Inc. (7a) ............. 100 2
Oshkosh Truck Corporation ..................... 100 3
Simpson Industries, Inc. ...................... 200 2
Wabash National Corporation ................... 100 2
Winnebago Industries, Inc. .................... 300 6
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.18 %)
Group 1 Automotive, Inc. (7a) ................. 100 1
United Auto Group, Inc. (7a) .................. 400 4
BUSINESS CREDIT INSTITUTIONS (0.22 %)
Arcadia Financial Ltd. (7a) ................... 500 2
Metris Companies Inc. ......................... 100 4
BUSINESS SERVICES (2.80 %)
24/7 Media, Inc. (7a) ......................... 100 6
Aaron Rents, Inc. ............................. 200 4
ABM Industries Incorporated ................... 100 2
ADVO, Inc. (7a) ............................... 100 2
F.Y.I. Incorporated (7a) ...................... 100 3
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
Fair, Isaac and Company,
Incorporated .............................. 200 $11
Globe.Com, Inc. (The) (7a) ................... 100 1
Interim Services Inc. (7a) ................... 200 5
NCO Group, Inc. (7a) ......................... 100 3
Olsten Corporation (The) ..................... 300 3
Teletech Holdings, Inc. (7a ) ................ 100 3
True North Communications, Inc. .............. 100 4
VerticalNet, Inc. (7a) ....................... 100 15
Wackenhut Corporation (The) -
Class A ................................... 300 4
West Teleservices Corporation (7a) ........... 500 12
CHEMICALS & ALLIED PRODUCTS (1.51 %)
Arch Chemicals, Inc. ......................... 100 2
ATMI, Inc. (7a) .............................. 100 3
Block Drug Company, Inc. -
Class A ................................... 206 6
Cambrex Corporation .......................... 100 3
Church & Dwight Co., Inc. .................... 100 3
CK Witco Corporation ......................... 300 4
Dexter Corporation (The) ..................... 100 4
Fuller (H.B.) Company ........................ 100 6
Geon Company (The) ........................... 100 3
Georgia Gulf Corporation ..................... 100 3
Schulman, (A.) Inc. .......................... 200 3
WD-40 Company ................................ 100 2
COMMERCIAL BANKS (2.55 %)
Bancwest Corp. ............................... 400 8
Community First Bankshares, Inc. ............. 300 5
Community Trust Bancorp, Inc. ................ 400 8
F & M National Corporation ................... 300 8
First United Bancshares, Inc. ................ 200 3
Frontier Financial Corporation ............... 100 2
Hancock Holding Company ...................... 100 4
Hudson United Bancorp, Inc. .................. 309 8
National City Bancshares, Inc. ............... 105 3
Oriental Financial Group Inc. ................ 100 2
Sky Financial Group Inc. ..................... 486 10
UST Corp. .................................... 100 3
Whitney Holding Corporation .................. 200 7
COMMUNICATION (0.72 %)
Ascent Entertainment
Group, Inc. (7a) .......................... 100 1
CapRock Communications
Corp. (7a) ................................ 200 6
Intraware Inc. (7a) .......................... 100 8
WorldGate Communications,
Inc. (7a) ................................. 100 5
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (1.65 %)
Advanced Fibre
Communications, Inc. (7a) ................ 200 $ 9
ANTEC Corporation (7a) ...................... 100 4
Aspect Communications
Corporation (7a) ......................... 100 4
Checkpoint Systems, Inc. (7a) ............... 100 1
Digital Microwave Corp. (7a) ................ 100 2
General Semiconductor, Inc. (7a) ............ 100 1
Harmonic Lightwaves, Inc. (7a) .............. 100 9
Pairgain Technologies, Inc. (7a) ............ 200 3
P-Com, Inc. (7a) ............................ 200 2
Powerwave Technologies, Inc. (7a) ........... 100 6
Sensormatic Electronics
Company (7a) ............................. 300 5
COMPUTER & DATA PROCESSING SERVICES (9.19 %)
Actuate Corporation (7a) .................... 100 4
American Management
Systems, Inc. (7a) ....................... 100 3
Aspect Development, Inc. (7a) ............... 100 7
Aspen Technology, Inc. (7a) ................. 100 3
Axent Technologies, Inc. (7a) ............... 100 2
Beyond.com Corporation (7a) ................. 100 1
Broadvision, Inc. (7a) ...................... 100 16
Cambridge Technology
Partners, Inc. (7a) ...................... 100 3
Cognizant Technology
Solutions Corp. (7a) ..................... 100 11
Cybercash, Inc. (7a) ........................ 100 1
Dendrite International, Inc. (7a) ........... 100 3
Eclipsys Corporation (7a) ................... 100 3
Entrust Technologies Inc. (7a) .............. 100 6
Filenet Corporation (7a) .................... 100 3
Genesys Telecommunications
Laboratories, Inc. (7a) .................. 100 5
GTECH Holdings Corp. (7a) ................... 100 2
Harbinger Corporation (7a) .................. 100 3
HNC Software Inc. (7a) ...................... 100 11
Imation Corp. (7a) .......................... 300 10
InfoCure Corporation (7a) ................... 100 3
Informix Corp. (7a) ......................... 300 3
Intergraph Corporation (7a) ................. 100 (7g)
ISS Group, Inc. (7a) ........................ 100 7
Learn2.com, Inc. (7a) ....................... 100 (7g)
Mapics Inc. (7a) ............................ 100 1
Medquist Inc. (7a) .......................... 200 5
Mentor Graphics Corporation (7a) ............ 400 5
Mercury Interactive
Corporation (7a) ......................... 100 11
Microstrategy Incorporated (7a) ............. 100 20
Open Market, Inc. (7a) ...................... 100 5
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
Pegasus Systems, Inc. (7a) ................. 100 $ 6
Primark Corporation (7a) ................... 100 3
Progress Software
Corporation (7a) ........................ 100 6
QRS Corporation (7a) ....................... 50 5
Radiant Systems, Inc. (7a) ................. 100 4
RadiSys Corporation (7a) ................... 150 8
Rare Medium Group, Inc. (7a) ............... 100 3
Razorfish Inc. (7a) ........................ 100 10
Remedy Corporation (7a) .................... 100 5
S1 Corporation (7a) ........................ 100 8
Santa Cruz Operation,
Inc. (The) (7a) ......................... 200 6
Sunquest Information
Systems, Inc. (7a) ...................... 200 3
Sybase, Inc. (7a) .......................... 400 7
Technology Solutions
Company (7a) ............................ 100 3
Titan Corporation (The) (7a) ............... 100 5
Transaction Systems
Architects, Inc. - Class A (7a) ......... 100 3
Unigraphics Solutions Inc. (7a) ............ 100 3
USINTERNETWORKING, Inc. (7a) ............... 100 7
Verity, Inc. (7a) .......................... 100 4
Wavo Corporation (7a) ...................... 100 (7g)
COMPUTER & OFFICE EQUIPMENT (3.45 %)
Advanced Digital Information
Corporation (7a) ........................ 100 5
Ancor Communications,
Incorporated (7a) ....................... 100 7
Auspex Systems, Inc. ....................... 100 1
Bell & Howell Company (7a) ................. 100 3
Black Box Corporation (7a) ................. 100 7
C-Cube Microsystems Inc. (7a) .............. 100 6
Emulex Corporation (7a) .................... 100 11
In Focus Systems, Inc. (7a) ................ 200 5
Iomega Corporation (7a) .................... 700 2
Kronos Incorporated (7a) ................... 100 6
MTI Technology Corporation (7a) ............ 100 4
National Computer Systems, Inc. ............ 200 8
National Instruments
Corporation (7a) ........................ 100 4
Network Equipment
Technologies, Inc. (7a) ................. 100 1
RSA Security, Inc. (7a) .................... 100 8
SanDisk Corporation (7a) ................... 100 10
Xircom, Inc. (7a) .......................... 100 8
CONSTRUCTION (2.01 %)
Comfort Systems USA, Inc. (7a) ............. 300 2
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 89
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
CONSTRUCTION (CONTINUED)
D.R. Horton, Inc. ............................. 400 $ 6
Del Webb Corporation (7a) ..................... 100 2
Dycom Industries, Inc. (7a) ................... 100 4
Foster Wheeler Corporation .................... 400 4
Granite Construction
Incorporated ............................... 300 6
Kaufman and Broad Home
Corporation ................................ 300 7
M.D.C. Holdings, Inc. ......................... 200 3
Morrison Knudsen
Corporation (7a) ........................... 400 3
Pulte Corporation ............................. 200 5
Ryland Group PLC .............................. 200 5
Standard Pacific Corp. ........................ 400 4
U.S. Home Corporation (7a) .................... 200 5
ELECTRIC SERVICES (0.40 %)
Eastern Utilities Associates .................. 200 6
United Illuminating
Company (The) .............................. 100 5
ELECTRIC, GAS & SANITARY SERVICES (1.08 %)
American States Water Company ................. 100 4
California Water Service Group ................ 100 3
Northwestern Corporation ...................... 200 4
Public Service Company of
New Mexico ................................. 400 7
RGS Energy Group Inc. ......................... 300 6
Trigen Energy Corporation ..................... 100 2
UGI Corporation ............................... 200 4
ELECTRICAL GOODS (0.32 %)
Anicom, Inc. (7a) ............................. 200 1
Kent Electronics Corporation (7a) ............. 200 5
Pioneer-Standard Electronics, Inc. ............ 100 1
World Access, Inc. (7a) ....................... 100 2
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.86 %)
Littelfuse, Inc. (7a) ......................... 200 5
Salton/Maxim
Housewares, Inc. (7a) ...................... 100 3
SLI, Inc. (7a) ................................ 200 3
Smith (A.O.) Corporation ...................... 400 9
Thomas Industries Inc. ........................ 200 4
ELECTRONIC COMPONENTS & ACCESSORIES (5.49 %)
Advanced Energy
Industries, Inc. (7a) ...................... 100 5
Alpha Industries, Inc. (7a) ................... 200 11
Amkor Technology, Inc. (7a) ................... 200 6
Amphenol Corp. - Class A (7a) ................. 200 13
Anadigics, Inc. (7a) .......................... 100 5
Artesyn Technologies, Inc. (7a) ............... 100 2
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (CONTINUED)
CTS Corporation .............................. 100 $ 8
Cypress Semiconductor
Corporation (7a) .......................... 300 10
Dallas Semiconductor Corporation ............. 100 6
DII Group, Inc. (The) (7a) ................... 100 7
Hadco Corporation (7a) ....................... 100 5
Innovex, Inc. ................................ 100 1
Integrated Device
Technology, Inc. (7a) ..................... 400 12
International Rectifier
Corporation (7a) .......................... 300 8
Kemet Corporation (7a) ....................... 200 9
Lattice Semiconductor
Corporation (7a) .......................... 100 5
Maker Communications, Inc. (7a) .............. 100 4
Methode Electronics, Inc. - Class A .......... 100 3
NeoMagic Corporation (7a) .................... 100 1
Park Electrochemical Corp. ................... 200 5
Power-One, Inc. (7a) ......................... 100 5
Triquint Semiconductor, Inc. (7a) ............ 100 11
Varian Semiconductor Equipment
Associates, Inc. (7a) ..................... 200 7
Vicor Corporation (7a) ....................... 100 4
ENGINEERING & MANAGEMENT SERVICES (0.25 %)
Tetra Tech, Inc. (7a) ........................ 200 3
URS Corporation (7a) ......................... 200 4
ENVIRONMENTAL SERVICES (0.11 %)
MAXIMUS, Inc. (7a) ........................... 100 3
FABRICATED METAL PRODUCTS (0.58 %)
BMC Industries, Inc. ......................... 500 2
Dura Automative
Systems, Inc. (7a) ........................ 100 2
Pitt-Des Moines, Inc. ........................ 200 5
Tower Automotive, Inc. (7a) .................. 200 3
Watts Industries, Inc. - Class A ............. 300 4
FOOD & KINDRED PRODUCTS (1.01 %)
Corn Products International, Inc. ............ 300 10
J & J Snack Foods Corp. (7a) ................. 400 8
Smithfield Foods, Inc. (7a) .................. 100 2
Smucker J.M. Company (The) -
Class A ................................... 200 4
Suiza Foods Corporation (7a) ................. 100 4
FOOD STORES (0.47 %)
Great Atlantic & Pacific
Tea Co., Inc. ............................. 300 8
Whole Foods Market, Inc. (7a) ................ 100 5
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
FURNITURE & FIXTURES (0.18 %)
Kimball International, Inc. -
Class B .................................. 200 $ 3
La-Z-Boy Incorporated ....................... 100 2
FURNITURE & HOME FURNISHINGS STORES (0.25 %)
Haverty Furniture Companies, Inc. ........... 400 5
Pier 1 Imports, Inc. ........................ 300 2
GAS PRODUCTION & DISTRIBUTION (1.33 %)
Cascade Natural Gas Corporation ............. 200 3
Energen Corporation ......................... 100 2
Equitable Resources, Inc. ................... 200 7
Laclede Gas Company ......................... 400 9
Northwest Natural Gas Company ............... 300 7
NUI Corporation ............................. 200 5
Western Gas Resources, Inc. ................. 300 4
HEALTH SERVICES (0.50 %)
AmeriPath, Inc. (7a) ........................ 200 2
Apria Healthcare Group Inc. (7a) ............ 300 5
Caremark Rx, Inc. (7a) ...................... 900 5
Total Renal Care
Holdings, Inc. (7a) ...................... 300 2
HOLDING & OTHER INVESTMENT OFFICES (0.75 %)
Allied Capital Corporation .................. 300 5
Inacom Corp. (7a) ........................... 100 1
InterDigital Communications
Corporation (7a) ......................... 200 15
HOTELS & OTHER LODGING PLACES (0.40 %)
Extended Stay America, Inc. (7a) ............ 400 3
Sunterra Corporation (7a) ................... 100 1
Trendwest Resorts, Inc. (7a) ................ 300 7
INDUSTRIAL MACHINERY & EQUIPMENT (3.51 %)
Agco Corporation ............................ 200 3
Astec Industries, Inc. (7a) ................. 100 2
Detroit Diesel Corporation .................. 200 4
Donaldson Company, Inc. ..................... 200 5
Electroglas, Inc. (7a) ...................... 100 3
Gerber Scientific, Inc. ..................... 200 4
Ionics, Incorporated (7a) ................... 100 3
Kennametal Inc. ............................. 200 7
Lam Research Corporation (7a) ............... 100 11
Manitowoc Company, Inc. (The) ............... 300 10
Milacron Inc. ............................... 100 2
Moog Inc. - Class A (7a) .................... 100 3
Nortek, Inc. (7a) ........................... 100 3
Photronics, Inc. (7a) ....................... 100 3
Roper Industries, Inc. ...................... 200 8
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
Standex International Corporation ........... 100 $ 2
Thermedics Inc. (7a) ........................ 100 1
Timken Company (The) ........................ 300 6
Toro Company (The) .......................... 200 7
Varco International, Inc. (7a) .............. 200 2
Varian Associates, Inc. (7a) ................ 100 3
Zebra Technologies Corporation -
Class A (7a) ............................. 100 6
INSTRUMENTS & RELATED PRODUCTS (2.34 %)
Analogic Corporation ........................ 100 3
Avid Technology, Inc. (7a) .................. 200 3
Cohu, Inc. .................................. 200 6
Cooper Companies, Inc. (The) ................ 200 6
Cymer, Inc. (7a) ............................ 100 5
Dionex Corporation (7a) ..................... 100 4
Genrad, Inc. (7a) ........................... 100 2
LTX Corporation (7a) ........................ 100 2
MTS Systems Corporation ..................... 200 2
PerkinElmer, Inc. ........................... 200 8
Pinnacle Systems, Inc. (7a) ................. 100 4
Primex Technologies, Inc. ................... 200 4
Sola International Inc. (7a) ................ 400 6
Tektronix, Inc. ............................. 100 4
Trimble Navigation Limited (7a) ............. 100 2
Wesley Jessen Visioncare, Inc. (7a) ......... 100 4
INSURANCE (1.69 %)
ACE Limited ................................. 195 3
Argonaut Group, Inc. ........................ 300 6
Chicago Title Corporation ................... 100 5
Enhance Financial Services
Group, Inc. .............................. 100 2
Fidelity National Financial, Inc. ........... 200 3
First American Financial
Corp. (The) .............................. 400 5
Frontier Insurance Group, Inc. .............. 600 2
LandAmerica Financial
Group, Inc. .............................. 200 4
Midland Company, (The) ...................... 100 2
PMA Capital Corporation -
Class A .................................. 100 2
Radian Group, Inc. .......................... 100 5
Reliance Group Holdings, Inc. ............... 400 3
Stewart Information Services
Corporation .............................. 200 3
Triad Guaranty Inc. (7a) .................... 100 2
INSURANCE AGENTS, BROKERS & SERVICE (0.22 %)
Gallagher (Arthur J.) & Co. ................. 100 6
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 91
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
LEATHER & LEATHER PRODUCTS (0.29 %)
Brown Group, Inc. ......................... 100 $ 1
K-Swiss Inc. - Class A .................... 100 2
Timberland Company (The) (7a) ............. 100 5
LIFE INSURANCE (0.58 %)
Amerus Life Holdings, Inc. - Class A ...... 200 5
Delphi Financial Group, Inc. -
Class A (7a) ........................... 102 3
Mony Group Inc. (The) ..................... 200 6
Presidential Life Corporation ............. 100 2
LUMBER & WOOD PRODUCTS (0.25 %)
Oakwood Homes Corporation ................. 600 2
TJ International, Inc. .................... 100 4
Universal Forest Products, Inc. ........... 100 1
MACHINERY, EQUIPMENT & SUPPLIES (0.25 %)
JLK Direct Distribution Inc. (7a) ......... 200 2
National-Oilwell, Inc. (7a) ............... 300 5
MANAGEMENT SERVICES (0.58 %)
AnswerThink Consulting
Group, Inc. (7a) ....................... 100 3
Diamond Technology Partners
Incorporated (7a) ...................... 100 9
Lason, Inc. (7a) .......................... 100 1
Navigant Consulting, Inc. (7a) ............ 200 2
Profit Recovery Group
International, Inc. (7a) ............... 50 1
MANUFACTURING INDUSTRIES (0.47 %)
Callaway Golf Company ..................... 200 4
Jakks Pacific, Inc. (7a) .................. 100 2
Midway Games Inc. (7a) .................... 300 7
MEDICAL INSTRUMENTS & SUPPLIES (0.65 %)
Conmed Corporation (7a) ................... 100 3
Datascope Corp. ........................... 100 4
Mentor Corporation (7a) ................... 100 3
STERIS Corporation (7a) ................... 200 2
Summit Technology, Inc. (7a) .............. 300 4
Sunrise Technologies
International, Inc. (7a) ............... 200 2
METAL CANS & SHIPPPING CONTAINERS (0.07 %)
U.S. Can Corporation (7a) ................. 100 2
METAL MINING (0.07 %)
Battle Mountain Gold
Company (7a) ........................... 900 2
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
MINING (0.65 %)
AMCOL International
Corporation ........................... 300 $ 5
Arch Coal, Inc. .......................... 400 5
Consol Energy Inc. ....................... 500 5
USEC Inc. ................................ 400 3
MORTGAGE BANKERS AND BROKERS (0.36 %)
Doral Financial Corporation .............. 400 5
New Century Financial
Corporation (7a) ...................... 200 3
Resource Bancshares Mortgage
Group, Inc. ........................... 500 2
MOTION PICTURES (0.04 %)
Hollywood Entertainment
Corporation (7a) ...................... 100 1
OIL & GAS EXTRACTION (1.47 %)
Brown (Tom), Inc. (7a) ................... 300 4
Forest Oil Corporation (7a) .............. 300 4
Helmerich & Payne, Inc. .................. 300 7
Mitchell Energy & Development
Corp. - Class A ....................... 400 9
Newfield Exploration
Company (7a) .......................... 100 3
Parker Drilling Company (7a) ............. 900 3
Patterson Energy, Inc. (7a) .............. 100 1
Pioneer Natural Resources
Company (7a) .......................... 200 2
Pride International, Inc. (7a) ........... 300 4
Veritas DGC, Inc. (7a) ................... 300 4
PAPER & ALLIED PRODUCTS (0.25 %)
Potlatch Corporation ..................... 100 4
Schweitzer-Mauduit
International, Inc. ................... 100 1
Wausau Mosinee Paper Corp. ............... 200 2
PAPER & PAPER PRODUCTS (0.29 %)
Daisytek International
Corporation (7a) ...................... 200 5
School Specialty, Inc. (7a) .............. 200 3
PAPERBOARD CONTAINERS AND BOXES (0.07 %)
Earthshell Corporation (7a) .............. 400 2
PERSONAL CREDIT INSTITUTIONS (0.36 %)
Advanta Corp. - Class A .................. 400 7
NextCard, Inc. (7a) ...................... 100 3
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
PETROLEUM REFINING (0.07 %)
Tesoro Petroleum
Corporation (7a) ..................... 200 $ 2
PHARMACEUTICALS (3.51 %)
Alpharma Inc. ........................... 200 6
AmeriSource Health
Corporation - Class A (7a) ........... 200 3
Bindley Western Industries, Inc. ........ 366 6
Biomatrix, Inc. (7a) .................... 100 2
Chirex Inc. (7a) ........................ 100 1
Coulter Pharmaceutical, Inc. (7a) ....... 100 2
Diagnostic Products Corp. ............... 200 5
Dura Pharmaceuticals, Inc. (7a) ......... 300 4
Gilead Sciences, Inc. (7a) .............. 100 5
Herbalife International, Inc. -
Class A .............................. 300 4
Human Genome
Sciences, Inc. (7a) .................. 100 15
Jones Pharma Inc. ....................... 150 7
King Pharmaceuticals, Inc. (7a) ......... 100 6
Medco Research, Inc. (7a) ............... 100 3
Millennium
Pharmaceuticals, Inc. (7a) ........... 100 12
NBTY, Inc. (7a) ......................... 600 7
Neurogen Corporation (7a) ............... 100 2
Perrigo Company (7a) .................... 300 2
Techne Corporation (7a) ................. 100 6
PRIMARY METAL INDUSTRIES (1.33 %)
Belden Inc. ............................. 200 4
Cable Design Technologies
Corporation (7a) ..................... 200 5
Mueller Industries, Inc. (7a) ........... 100 4
Oregon Steel Mills, Inc. ................ 200 2
Quanex Corporation ...................... 300 8
Texas Industries, Inc. .................. 100 4
Worthington Industries, Inc. ............ 600 10
PRINTING & PUBLISHING (0.61 %)
Paxar Corporation (7a) .................. 400 3
Playboy Enterprises, Inc. -
Class B (7a) ......................... 100 2
Pulitzer Inc. ........................... 100 4
Wallace Computer Services, Inc. ......... 300 5
Ziff-Davis Inc. (7a) .................... 200 3
RADIO & TELEVISION BROADCASTING (1.08 %)
Cumulus Media Inc. (7a) ................. 100 5
Emmis Communications
Corporation - Class A (7a) ........... 100 12
Entercom Communications
Corp. (7a) ........................... 100 7
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (CONTINUED)
Price Communications
Corporation (7a) ..................... 215 $ 6
RADIO, TELEVISION, & COMPUTER STORES (0.32 %)
barnesandnoble.com inc. (7a) ............. 100 1
CDnow, Inc. (7a) ......................... 100 1
CompUSA Inc. (7a) ........................ 300 2
InterTAN, Inc. (7a) ...................... 200 5
REAL ESTATE (0.14 %)
LNR Property Corporation ................. 200 4
RESEARCH & TESTING SERVICES (1.01 %)
Celgene Corporation (7a) ................. 100 7
Covance Inc. (7a) ........................ 200 2
NFO Worldwide, Inc. (7a) ................. 300 7
Quest Diagnostics, Inc. (7a) ............. 400 12
RESTAURANTS (0.47 %)
Buffets, Inc. (7a) ....................... 200 2
Lone Star Industries, Inc. (7a) .......... 400 4
Rare Hospitality
International, Inc. (7a) .............. 100 2
Ruby Tuesday, Inc. ....................... 100 2
Ryan's Family Steak
Houses, Inc. (7a) ..................... 400 3
RETAIL TRADE (1.80 %)
Borders Group, Inc. (7a) ................. 200 3
Insight Enterprises, Inc. (7a) ........... 100 4
Jo-Ann Stores Inc. - Class A (7a) ........ 600 7
Lands' End, Inc. (7a) .................... 100 3
Michaels Stores, Inc. (7a) ............... 200 6
Micro Warehouse, Inc. (7a) ............... 100 2
OfficeMax, Inc. (7a) ..................... 800 4
Petco Animal Supplies, Inc. (7a) ......... 200 3
PETsMART, Inc. (7a) ...................... 400 2
Shop At Home, Inc. (7a) .................. 100 1
Spiegel, Inc. - Class A (7a) ............. 500 4
Sunglass Hut
International, Inc. (7a) ............. 100 1
ValueVision International, Inc. -
Class A (7a) ......................... 100 6
Whitehall Jewelers, Inc. (7a) ........... 100 4
RUBBER & MISC. PLASTIC PRODUCTS (0.68 %)
Bandag, Incorporated .................... 400 10
Grace (W.R.) & Co. (7a) ................. 200 3
Spartech Corporation .................... 100 3
Trex Company, Inc. (7a) ................. 100 3
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 93
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
SAVINGS INSTITUTIONS (1.80 %)
Bank United Corp. - Class A .......... 100 $ 3
Bay View Capital Corporation ......... 100 1
Capitol Federal Financial ............ 600 6
Dime Community Bancshares, Inc. ...... 100 2
First Financial Holdings, Inc. ....... 200 3
First Washington Bancorp Inc. ........ 300 4
MAF Bancorp, Inc. .................... 100 2
Net.B@nk, Inc. (7a) .................. 100 2
PFF Bancorp, Inc. .................... 100 2
Queens County Bancorp, Inc. .......... 100 3
Reliance Bancorp, Inc. ............... 100 3
Republic Security Financial
Corporation ....................... 300 2
Richmond County Financial Corp. ...... 300 5
Telebanc Financial
Corporation (7a) .................. 200 5
United Community
Financial Corp. ................... 300 3
Washington Federal, Inc. ............. 200 4
SECURITY & COMMODITY BROKERS (1.44 %)
Affiliated Managers
Group, Inc. (7a) .................. 200 8
AmeriCredit Corp. (7a) ............... 200 4
Dain Rauscher Corporation ............ 100 5
Data Broadcasting
Corporation (7a) .................. 100 1
Investors Financial Services Corp. ... 100 5
Jefferies Group, Inc. ................ 200 4
John Nuveen Company (The) -
Class A ........................... 200 7
Raymond James Financial, Inc. ........ 100 2
United Asset Management
Corporation ....................... 200 4
SHOE STORES (0.22 %)
Footstar, Inc. (7a) .................. 100 3
Genesco Inc. (7a) .................... 200 3
STONE, CLAY & GLASS PRODUCTS (0.18 %)
Florida Rock Industries, Inc. ........ 100 3
Mikasa, Inc. ......................... 200 2
TELECOMMUNICATIONS (1.65 %)
Concentric Network
Corporation (7a) .................. 100 3
E.Spire Communications Inc. (7a) ..... 200 1
ICG Communications, Inc. (7a) ........ 100 2
Intermedia
Communications Inc. (7a) .......... 100 4
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
ITC Deltacom, Inc. (7a) ............. 200 $ 6
Omnipoint Corporation (7a) .......... 100 12
Powertel, Inc. (7a) ................. 100 10
Talk.Com, Inc. (7a) ................. 100 2
US LEC Corp. - Class A (7a) ......... 200 6
TEXTILE MILL PRODUCTS (0.36 %)
Collins & Aikman Corporation ........ 400 2
Springs Industries, Inc. - Class A .. 200 8
TRANSPORTATION & PUBLIC UTILITIES (0.07 %)
Fritz Companies, Inc. (7a) .......... 200 2
TRANSPORTATION EQUIPMENT (0.32 %)
Arctic Cat, Inc. .................... 400 4
Trinity Industries, Inc. ............ 100 3
Westinghouse Air Brake Company ...... 132 2
TRUCKING & WAREHOUSING (0.72 %)
American Freightways
Corporation (7a) ................. 200 3
Covenant Transport, Inc. -
Class A (7a) ..................... 200 3
Landstar System, Inc. (7a) .......... 200 9
Roadway Express, Inc. ............... 100 2
Yellow Corporation (7a) ............. 200 3
VARIETY STORES (0.14 %)
Shopko Stores, Inc. (7a) ............ 100 2
Value City Department
Stores, Inc. (7a) ................ 100 2
WHOLESALE TRADE DURABLE GOODS (0.83 %)
Commercial Metals Company ........... 200 7
Compucom Systems, Inc. (7a) ......... 100 (7g)
Handleman Company (7a) .............. 100 1
Patterson Dental Company (7a) ....... 100 4
Reliance Steel & Aluminum Co. ....... 150 4
Ryerson Tull, Inc. .................. 100 2
SCP Pool Corporation (7a) ........... 100 3
WESCO International, Inc. (7a) ...... 200 2
WHOLESALE TRADE NONDURABLE GOODS (0.29 %)
Fleming Companies, Inc. ............. 100 1
Performance Food Group
Company (7a) ..................... 100 2
Universal Corporation ............... 200 5
-----
Total Common Stocks
(cost: $ 1,875) ................................ 2,108
-----
See Notes to the Financial Statements, which is an integral part of this report.
94 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL GOLDMAN SACHS SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------
SHORT-TERM OBLIGATIONS (22.06 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 614 on
01/03/2000 .............. $ 614 $ 614
------
Total Short-Term Obligations
(cost: $ 614) .............. 614
------
Total Investment Securities
(cost: $ 2,489) ............ $2,722
======
SUMMARY
Investments, at market value 97.81 % $2,722
Other assets in
excess of liabilities ... 2.19 % 61
-------- ------
Net assets ................. 100.00 % $2,783
======== ======
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 95
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE DIVIDEND GROWTH
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (95.49 %)
AMUSEMENT & RECREATION SERVICES (0.62 %)
Disney (Walt) Company (The) ................... 1,830 $ 54
BEVERAGES (1.28 %)
PepsiCo, Inc. ................................. 3,190 112
BUSINESS SERVICES (1.49 %)
Omnicom Group, Inc. ........................... 1,300 130
CHEMICALS & ALLIED PRODUCTS (3.37 %)
Colgate-Palmolive Company ..................... 1,000 65
Great Lakes Chemical .......................... 3,200 122
RPM, Inc. ..................................... 3,760 38
Valspar Corporation (The) ..................... 1,640 69
COMMERCIAL BANKS (9.09 %)
Bank of New York
Company, Inc. (The) ........................ 3,200 128
BankAmerica Corporation ....................... 560 28
Citigroup Inc. ................................ 3,600 201
Firstar Corporation ........................... 4,200 89
Huntington Bancshares, Inc. ................... 851 20
Mellon Financial Corporation .................. 3,480 119
U.S. Bancorp .................................. 2,500 60
Wells Fargo & Co. ............................. 3,690 149
COMPUTER & DATA PROCESSING SERVICES (4.05 %)
Automatic Data Processing, Inc. ............... 1,400 75
BMC Software, Inc. (7a) ....................... 100 8
Computer Associates
International, Inc. ........................ 1,600 112
Galileo International, Inc. ................... 3,800 114
IMS Health Incorporated ....................... 1,660 45
COMPUTER & OFFICE EQUIPMENT (2.20 %)
Compaq Computer Corporation ................... 1,000 27
Dell Computer Corporation (7a) ................ 100 5
Hewlett-Packard Company ....................... 1,400 160
DRUG STORES & PROPRIETARY STORES (0.78 %)
CVS Corporation ............................... 1,700 68
ELECTRIC SERVICES (1.76 %)
DQE, Inc. ..................................... 2,900 100
TECO Energy, Inc. ............................. 2,900 54
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.07 %)
General Electric Company ...................... 600 93
NUMBER OF MARKET
SHARES VALUE
--------- --------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (0.21 %)
Linear Technology Corporation ................ 250 $ 18
ENVIRONMENTAL SERVICES (0.89 %)
Rentokil Initial PLC ......................... 21,400 78
FABRICATED METAL PRODUCTS (2.20 %)
Masco Corporation ............................ 3,800 96
Stanley Works (The) .......................... 3,200 96
FOOD & KINDRED PRODUCTS (3.32 %)
General Mills, Inc. .......................... 1,500 54
McCormick & Company,
Incorporated .............................. 2,300 68
Philip Morris Companies Inc. ................. 4,000 93
Sara Lee Corporation ......................... 3,400 75
FOOD STORES (1.41 %)
Albertson's, Incorporated .................... 2,353 76
Koninklijke Ahold NV ......................... 1,600 47
HOLDING & OTHER INVESTMENT OFFICES (6.22 %)
Archstone Communities Trust .................. 5,300 109
Cousins Properties, Incorporated ............. 2,260 77
Crescent Real Estate Equities
Company ................................... 3,600 66
Duke-Weeks Realty Corporation ................ 3,741 73
Manufactured Home
Communities, Inc. ......................... 1,490 36
Reckson Associates Realty Corp. .............. 4,420 91
Vornado Realty Trust ......................... 2,800 91
INDUSTRIAL MACHINERY & EQUIPMENT (1.73 %)
Baker Hughes, Inc. ........................... 1,200 25
Black & Decker Corporation (The) ............. 1,900 99
Tyco International Ltd. ...................... 700 27
INSTRUMENTS & RELATED PRODUCTS (1.39 %)
Analogic Corporation ......................... 1,780 59
Honeywell International Inc. ................. 1,070 62
INSURANCE (3.70 %)
ACE Limited .................................. 5,100 85
Cigna Corporation ............................ 700 56
XL Capital Ltd. - Class A .................... 3,500 182
INSURANCE AGENTS, BROKERS & SERVICE (0.52 %)
Marsh & McLennan
Companies, Inc. ........................... 470 45
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (0.87 %)
American General Corporation ........... 1,000 $ 76
MANAGEMENT SERVICES (0.62 %)
ServiceMaster Company (The) ............ 4,400 54
MANUFACTURING INDUSTRIES (1.33 %)
Hasbro Inc. ............................ 3,150 60
Tomkins PLC ............................ 17,300 56
MEDICAL INSTRUMENTS & SUPPLIES (0.93 %)
Teleflex Incorporated .................. 2,600 81
METAL MINING (0.58 %)
Newmont Mining Corporation ............. 2,100 51
PAPER & ALLIED PRODUCTS (1.27 %)
Kimberly-Clark Corporation ............. 1,700 111
PERSONAL CREDIT INSTITUTIONS (0.68 %)
Associates First Capital
Corporation - Class A ............... 2,140 59
PERSONAL SERVICES (0.76 %)
Block, (H & R) Inc. .................... 1,500 66
PETROLEUM REFINING (8.40 %)
Amerada Hess Corporation ............... 1,330 75
BP Amoco PLC - ADR ..................... 2,900 172
Chevron Corporation .................... 880 76
Exxon Mobil Corporation ................ 2,708 219
Royal Dutch Petroleum Company -
NY Registered Shares ................ 2,300 139
USX-Marathon Group ..................... 2,100 52
PHARMACEUTICALS (8.95 %)
Abbott Laboratories .................... 1,600 58
American Home Products
Corporation ......................... 2,700 106
Bristol-Myers Squibb Co. ............... 2,700 173
Johnson & Johnson ...................... 1,300 121
Merck & Co., Inc. ...................... 1,000 67
Pfizer Incorporated .................... 1,640 53
Schering-Plough Corporation ............ 1,900 80
Warner-Lambert Company ................. 1,500 123
PRINTING & PUBLISHING (1.84 %)
Reynolds and Reynolds
Company (The) - Class A ............. 990 22
Tribune Company ........................ 2,000 110
Wolters Kluwer NV ...................... 850 29
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
REAL ESTATE (3.68 %)
Arden Realty, Inc. ..................... 2,700 $ 54
ProLogis Trust ......................... 9,100 175
Starwood Hotels & Resorts
Worldwide ........................... 3,900 92
RESTAURANTS (0.73 %)
Viad Corp. ............................. 2,300 64
RUBBER & MISC. PLASTIC PRODUCTS (0.69 %)
NIKE, Inc. - Class B ................... 1,210 60
SECURITY & COMMODITY BROKERS (1.75 %)
Waddell & Reed Financial, Inc. -
Class A ............................. 710 19
Waddell & Reed Financial, Inc. -
Class B ............................. 5,340 134
STONE, CLAY & GLASS PRODUCTS (0.56 %)
Newell Rubbermaid, Inc. ................ 1,680 49
TELECOMMUNICATIONS (7.20 %)
ALLTEL Corporation ..................... 2,000 165
GTE Corporation ........................ 1,800 127
MediaOne Group Inc. (7a) ............... 800 61
SBC Communications Inc. ................ 2,600 127
Sprint Corporation (FON Group) ......... 2,220 149
TRANSPORTATION & PUBLIC UTILITIES (1.09 %)
C.H. Robinson Worldwide, Inc. .......... 2,400 95
TRUCKING & WAREHOUSING (0.40 %)
United Parcel Service, Inc. -
Class B ............................. 500 35
U.S. GOVERNMENT AGENCIES (3.45 %)
Fannie Mae ............................. 3,000 188
Freddie Mac ............................ 2,400 113
VARIETY STORES (1.92 %)
Dayton Hudson Corporation .............. 1,100 81
Family Dollar Stores, Inc. ............. 5,330 87
WATER TRANSPORTATION (0.49 %)
Carnival Corporation ................... 900 43
-----
Total Common Stocks
(cost: $ 8,514) ..................................... 8,336
-----
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 97
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE DIVIDEND GROWTH (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
COMMERCIAL PAPER (3.42 %)
Preferred Receivable
Funding - 144A (7c)
6.30 %, due 01/21/2000 .. $ 300 $ 299
------
Total Commercial Paper
(cost: $ 299) .............. 299
------
Total Investment Securities
(cost: $ 8,813) ............ $8,635
======
SUMMARY
Investments, at market value 98.91 % $8,635
Other assets in
excess of liabilities ... 1.09 % 95
-------- ------
Net assets ................. 100.00 % $8,730
======== ======
MARKET
PERCENTAGE VALUE
----------- -------
INVESTMENTS BY COUNTRY:
Netherlands ................. 0.88 % $ 76
United Kingdom .............. 1.55 % 134
United States ............... 97.57 % 8,425
-------- ------
Investments, at market value 100.00 % $8,635
======== ======
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (95.59 %)
AEROSPACE (0.19 %)
Triumph Group, Inc. (7a) ............................. 800 $ 19
AGRICULTURE (0.19 %)
Veterinary Centers of
America, Inc. (7a) ................................ 1,500 19
AIR TRANSPORTATION (0.32 %)
Alaska Air Group, Inc. (7a) .......................... 400 14
Mesaba Holdings, Inc. (7a) ........................... 1,500 17
AMUSEMENT & RECREATION SERVICES (0.59 %)
Premier Parks Inc. (7a) .............................. 1,100 32
SFX Entertainment, Inc. -
Class A (7a) ...................................... 725 26
APPAREL & ACCESSORY STORES (0.98 %)
Buckle, Inc. (The) (7a) .............................. 200 3
Men's Wearhouse, Inc. (The) (7a)...................... 1,300 38
Pacific Sunwear of
California, Inc. (7a) ............................. 1,275 41
Ross Stores, Inc. .................................... 800 14
APPAREL PRODUCTS (0.23 %)
Quiksilver, Inc. (7a) ................................ 1,500 23
AUTO REPAIR, SERVICES & PARKING (0.29 %)
Avis Rent A Car, Inc. (7a) ........................... 1,100 28
AUTOMOTIVE (0.40 %)
Gentex Corporation (7a) .............................. 1,400 39
AUTOMOTIVE DEALERS & SERVICE STATIONS (0.58 %)
Group 1 Automotive, Inc. (7a) ........................ 1,300 18
O'Reilly Automotive, Inc. (7a) ....................... 1,800 39
BUSINESS CREDIT INSTITUTIONS (0.35 %)
First Sierra Financial, Inc. (7a) .................... 500 9
Metris Companies Inc. ................................ 700 25
BUSINESS SERVICES (3.45 %)
Catalina Marketing
Corporation (7a) .................................. 350 41
F.Y.I. Incorporated (7a) ............................. 600 20
Fair, Isaac and Company,
Incorporated ...................................... 800 42
Getty Images, Inc. (7a) .............................. 400 20
InfoUSA Inc. (7a) .................................... 400 6
Lamar Advertising Company (7a) ....................... 200 12
Modis Professional
Services Inc. (7a) ................................ 2,600 37
National Data Corporation ............................ 600 20
NCO Group, Inc. (7a) ................................. 1,200 36
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
NOVA Corporation (7a) ................................ 1,500 $ 47
Professional Staff PLC -
Sponsored ADR (7a) ................................ 1,000 6
Rent Way, Inc. (7a) .................................. 900 17
Romac International, Inc. (7a) ....................... 500 7
TMP Worldwide Inc. (7a) .............................. 200 28
CHEMICALS & ALLIED PRODUCTS (0.79 %)
ATMI, Inc. (7a) ...................................... 900 30
MacDermid, Incorporated .............................. 800 33
Smith International, Inc. (7a) ....................... 300 15
COMMERCIAL BANKS (0.91 %)
City National Corporation ............................ 900 30
Commerce Bancorp, Inc. ............................... 850 34
Community First Bankshares, Inc. .................... 1,600 25
COMMUNICATION (1.20 %)
American Tower
Corporation - Class A (7a) ........................ 1,500 46
CapRock Communications
Corp. (7a) ........................................ 300 10
Crown Castle
International Corp. (7a) .......................... 1,650 53
Network Event Theater, Inc. (7a) ..................... 100 3
Northeast Optic
Network, Inc. (7a) ................................ 100 6
COMMUNICATIONS EQUIPMENT (3.88 %)
Carrier Access Corporation (7a) ...................... 400 27
CommScope, Inc. (7a) ................................. 600 24
Comverse Technology, Inc. (7a) ....................... 200 29
Gilat Satellite Networks (7a) ........................ 500 59
Inter-Tel, Incorporated .............................. 1,900 48
Intervoice, Inc. (7a) ................................ 2,900 67
Polycom, Inc. (7a) ................................... 1,000 64
Powerwave Technologies, Inc. (7a) ................... 500 29
Spectrian Corporation (7a) ........................... 1,200 34
COMPUTER & DATA PROCESSING SERVICES (20.97 %)
Activision, Inc. (7a) ................................ 1,400 21
Actuate Corporation (7a) ............................. 1,000 43
Acxiom Corp. (7a) .................................... 200 5
Affiliated Computer Services, Inc. -
Class A (7a) ...................................... 700 32
American Management
Systems, Inc. (7a) ................................ 700 22
Ardent Software, Inc. (7a) ........................... 1,100 43
AVT Corporation (7a) ................................. 1,000 47
Beyond.com Corporation (7a) .......................... 1,500 12
Bisys Group, Inc. (The) (7a) ......................... 700 46
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 99
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
CIBER, Inc. (7a) ............................... 700 $ 19
Citrix Systems, Inc. (7a) ...................... 400 49
Clarify Inc. (7a) .............................. 300 38
Cognizant Technology
Solutions Corp. (7a) ........................ 100 11
Cognos Incorporated (7a) ....................... 1,100 51
Concord
Communications, Inc. (7a) ................... 800 36
CoStar Group, Inc. (7a) ........................ 400 14
Dendrite International, Inc. (7a) .............. 600 20
Digital River, Inc. (7a) ....................... 700 23
Electronic Arts, Inc. (7a) ..................... 200 17
FactSet Research Systems Inc. .................. 600 48
Great Plains Software, Inc. (7a) ............... 500 37
Henry, (Jack) & Associates, Inc. ............... 800 43
Hyperion Solutions
Corporation (7a) ............................ 1,500 65
InfoCure Corporation (7a) ...................... 900 28
InterVU Inc. (7a) .............................. 100 11
Intuit Inc. (7a) ............................... 900 54
ISS Group, Inc. (7a) ........................... 800 57
Keane, Inc. (7a) ............................... 500 16
Legato Systems, Inc. (7a) ...................... 700 48
Liberate Technologies (7a) ..................... 400 104
Macromedia, Inc. (7a) .......................... 800 59
Mastec, Inc. (7a) .............................. 900 22
Medquist Inc. (7a) ............................. 1,100 28
Mercury Interactive
Corporation (7a) ............................ 500 54
Metamor Worldwide, Inc. (7a) ................... 800 23
Micromuse Inc. (7a) ............................ 200 34
Microstrategy Incorporated (7a) ................ 100 21
Netopia, Inc. (7a) ............................. 500 27
Networks Associates, Inc. (7a) ................. 800 21
Pegasus Systems, Inc. (7a) ..................... 800 48
Peregrine Systems, Inc. (7a) ................... 800 67
PSINet Inc. (7a) ............................... 300 19
QRS Corporation (7a) ........................... 925 97
Radiant Systems, Inc. (7a) ..................... 100 4
Remedy Corporation (7a) ........................ 700 33
Sterling Commerce, Inc. (7a) ................... 300 10
SunGard Data Systems Inc. (7a) ................. 800 19
Sykes Enterprises,
Incorporated (7a) ........................... 1,300 57
Symantec Corporation (7a) ...................... 1,000 59
Synopsys, Inc. (7a) ............................ 500 33
TSI International
Software Ltd. (7a) .......................... 100 6
USINTERNETWORKING, Inc. (7a) ................... 1,200 84
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
COMPUTER & DATA PROCESSING SERVICES (CONTINUED)
USWeb Corporation (7a) ......................... 1,400 $ 62
Verity, Inc. (7a) .............................. 400 17
Webtrends Corp. (7a) ........................... 700 57
Wind River Systems, Inc. (7a) .................. 1,100 40
COMPUTER & OFFICE EQUIPMENT (6.12 %)
Apex, Inc. (7a) ................................ 100 3
Black Box Corporation (7a) ..................... 750 50
C-Cube Microsystems Inc. (7a) .................. 500 31
Cybex Computer Products
Corporation (7a) ............................ 1,300 53
Electronics For Imaging, Inc. (7a) ............. 500 29
National Computer Systems, Inc. ................ 800 30
National Instruments
Corporation (7a) ............................ 1,600 61
Proxim, Inc. (7a) .............................. 900 99
RSA Security, Inc. (7a) ........................ 1,400 110
S3 Incorporated (7a) ........................... 1,900 22
Symbol Technologies, Inc. ...................... 700 44
Visual Networks, Inc. (7a) ..................... 500 40
Xircom, Inc. (7a) .............................. 400 30
CONSTRUCTION (0.98 %)
Dycom Industries, Inc. (7a) .................... 900 40
Insituform Technologies, Inc. -
Class A (7a) ................................ 1,000 28
Quanta Services, Inc. (7a) ..................... 1,000 28
DEPARTMENT STORES (0.32 %)
Neiman Marcus
Group, Inc. (The) - Class A (7a) ............ 1,100 31
DRUG STORES & PROPRIETARY STORES (0.73 %)
Duane Reade Inc. (7a) .......................... 1,300 36
Omnicare, Inc. ................................. 3,000 36
EDUCATIONAL SERVICES (1.06 %)
Apollo Group, Inc. - Class A (7a) .............. 1,400 28
DeVRY Inc. (7a) ................................ 700 13
ITT Educational
Services, Inc. (7a) ......................... 1,300 20
Learning Tree
International, Inc. (7a) .................... 1,550 43
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.77 %)
American Power Conversion
Corporation (7a) ............................ 700 18
Rayovac Corporation (7a) ....................... 900 17
Zomax Optical Media, Inc. (7a) ................. 900 41
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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (11.93 %)
Advanced Energy
Industries, Inc. (7a) ..................... 600 $ 30
Alpha Industries, Inc. (7a) .................. 500 29
American Xtal
Technology, Inc. (7a) ..................... 1,100 19
Amphenol Corp. - Class A (7a) ................ 300 20
Artesyn Technologies, Inc. (7a) .............. 700 15
Benchmark Electronics, Inc. (7a) ............. 400 9
Burr-Brown Corporation (7a) .................. 1,800 65
CTS Corporation .............................. 400 30
Dallas Semiconductor Corporation ............. 1,000 64
DII Group, Inc. (The) (7a) ................... 200 14
Etec Systems, Inc. (7a) ...................... 800 36
GlobeSpan
Semiconductor Inc. (7a) ................... 400 26
JDS Uniphase Corporation (7a) ................ 200 32
Kemet Corporation (7a) ....................... 800 36
Kopin Corporation (7a) ....................... 1,600 67
Lattice Semiconductor
Corporation (7a) .......................... 1,400 66
Maxim Integrated Products (7a) ............... 600 28
Mercury Computer
Systems, Inc. (7a) ........................ 1,000 35
Micrel, Incorporated (7a) .................... 1,200 68
Microchip Technology
Incorporated (7a) ......................... 800 55
MIPS Technologies, Inc. (7a) ................. 600 31
Plexus Corp. (7a) ............................ 1,000 44
PMC-Sierra, Inc. (7a) ........................ 200 32
Power Integrations, Inc. (7a) ................ 600 29
QLogic Corporation (7a) ...................... 600 96
Sanmina Corporation (7a) ..................... 300 30
SCI Systems, Inc. (7a) ....................... 300 25
Semtech Corporation (7a) ..................... 1,100 57
Transwitch Corporation (7a) .................. 750 54
Vitesse Semiconductor
Corporation (7a) .......................... 600 31
ENGINEERING & MANAGEMENT SERVICES (0.31 %)
Tetra Tech, Inc. (7a) ........................ 1,975 30
ENVIRONMENTAL SERVICES (0.35 %)
Casella Waste Systems, Inc. -
Class A (7a) .............................. 1,800 34
FABRICATED METAL PRODUCTS (0.36 %)
NCI Building Systems, Inc. (7a) .............. 500 9
Simpson Manufacturing
Co., Inc. (7a) ............................ 600 26
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
FOOD & KINDRED PRODUCTS (0.57 %)
Ben & Jerry's
Homemade, Inc. (7a) ...................... 500 $ 12
Hain Food Group, Inc. (The) (7a) ............ 1,100 25
Smithfield Foods, Inc. (7a) ................. 800 19
FOOD STORES (0.42 %)
Whole Foods Market, Inc. (7a) ............... 600 28
Wild Oats Markets, Inc. (7a) ................ 600 13
FURNITURE & HOME FURNISHINGS STORES (0.54 %)
Bed Bath & Beyond Inc. (7a) ................. 500 17
Linens 'N Things, Inc. (7a) ................. 750 22
Williams-Sonoma, Inc. (7a) .................. 300 14
HEALTH SERVICES (1.48 %)
Advance Paradigm, Inc. (7a) ................. 1,000 22
Express Scripts, Inc. - Class A (7a) ........ 350 22
Lincare Holdings Inc. (7a) .................. 1,100 38
Renal Care Group, Inc. (7a) ................. 1,200 28
TLC Laser Eye Centers Inc. (7a) ............. 600 8
Universal Health Services, Inc. -
Class B (7a) ............................. 750 27
HOLDING & OTHER INVESTMENT OFFICES (0.41 %)
Apartment Investment &
Management Co. - Class A ................. 1,000 40
HOTELS & OTHER LODGING PLACES (0.26 %)
Sunterra Corporation (7a) ................... 2,300 26
INDUSTRIAL MACHINERY & EQUIPMENT (2.71 %)
Applied Science and
Technology, Inc. (7a) .................... 1,200 40
Asyst Technologies, Inc. (7a) ............... 700 46
Novellus Systems, Inc. (7a) ................. 600 74
Pentair, Inc. ............................... 500 19
Terex Corporation (7a) ...................... 1,000 28
Zebra Technologies Corporation -
Class A (7a) ............................. 1,000 59
INSTRUMENTS & RELATED PRODUCTS (4.13 %)
Cognex Corporation (7a) ..................... 900 35
Cohu, Inc. .................................. 1,300 40
Cymer, Inc. (7a) ............................ 700 32
Cytyc Corporation (7a) ...................... 700 43
Dionex Corporation (7a) ..................... 750 31
Fossil, Inc. (7a) ........................... 1,150 27
Imax Corporation (7a) ....................... 2,100 57
Molecular Devices
Corporation (7a) ......................... 200 10
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 101
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
INSTRUMENTS & RELATED PRODUCTS (CONTINUED)
Orbital Sciences Corporation (7a) ........... 900 $ 17
Pinnacle Systems, Inc. (7a) ................. 1,100 45
Teradyne, Inc. (7a) ......................... 600 40
Wesley Jessen Visioncare, Inc. (7a) ......... 800 30
INSURANCE (0.87 %)
Blanch (E.W.), Holdings, Inc. ............... 450 28
Pre-Paid Legal Services, Inc. (7a) .......... 900 22
Radian Group, Inc. .......................... 723 35
INSURANCE AGENTS, BROKERS & SERVICE (0.29 %)
First Health Group Corp. (7a) ............... 600 16
Inspire Insurance
Solutions, Inc. (7a) ..................... 2,600 12
LEATHER & LEATHER PRODUCTS (0.33 %)
Cole (Kenneth)
Productions, Inc. (7a) ................... 700 32
LIFE INSURANCE (0.31 %)
Nationwide Financial
Services, Inc. - Class A ................. 600 17
Protective Life Corporation ................. 400 13
MACHINERY, EQUIPMENT & SUPPLIES (0.08 %)
MSC Industrial Direct Co., Inc. -
Class A (7a) ............................. 600 8
MANAGEMENT SERVICES (0.64 %)
First Consulting Group, Inc. (7a) ........... 800 12
Lason, Inc. (7a) ............................ 500 6
Navigant Consulting, Inc. (7a) .............. 400 4
Profit Recovery Group
International, Inc. (7a) ................. 300 8
Whittman-Hart, Inc. (7a) .................... 400 21
Xceed Inc. (7a) ............................. 300 12
MANUFACTURING INDUSTRIES (0.40 %)
Jakks Pacific, Inc. (7a) .................... 900 17
Steinway Musical
Instruments, Inc. (7a) ................... 1,100 22
MEDICAL INSTRUMENTS & SUPPLIES (1.53 %)
DENTSPLY International, Inc. ................ 1,000 24
Hanger Orthopedic
Group, Inc. (7a) ......................... 600 6
Mentor Corporation .......................... 1,700 44
ResMed Inc. (7a) ............................ 600 25
Sybron International
Corporation (7a) ......................... 800 20
Ventana Medical System, Inc. (7a) ........... 400 10
Visx, Incorporated (7a) ..................... 400 21
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
MOTION PICTURES (0.31 %)
Macrovision Corporation (7a) ................ 400 $ 30
OIL & GAS EXTRACTION (1.38 %)
Barrett Resources
Corporation (7a) ......................... 600 18
BJ Services Company (7a) .................... 900 38
Cal Dive International, Inc. (7a) ........... 600 20
Noble Affiliates, Inc. ...................... 950 20
Oceaneering
International, Inc. (7a) ................. 1,000 15
UTI Energy Corp. (7a) ....................... 1,100 25
PERSONAL SERVICES (0.11 %)
G&K Services, Inc. .......................... 350 11
PHARMACEUTICALS (4.33 %)
Andrx Corporation (7a) ...................... 600 25
Biogen, Inc. (7a) ........................... 100 8
Chattem, Inc. (7a) .......................... 850 16
Forest Laboratories, Inc. (7a) .............. 450 28
Inhale Therapeutic Systems (7a) ............. 1,100 47
Jones Pharma Inc. ........................... 1,300 56
K-V Pharmaceutical
Company - Class A (7a) ................... 700 15
Liposome Company,
Inc. (The) (7a) .......................... 1,500 18
Medco Research, Inc. (7a) ................... 1,400 42
Priority Healthcare
Corporation - Class B (7a) ............... 900 26
Serologicals Corporation (7a) ............... 1,900 11
Shire Pharmaceuticals
Group PLC - ADR (7a) ..................... 1,797 52
Techne Corporation (7a) ..................... 600 33
Theragenics Corporation (7a) ................ 2,200 20
Watson Pharmaceuticals, Inc. (7a) ........... 800 29
PRIMARY METAL INDUSTRIES (0.27 %)
Andrew Corporation (7a) ..................... 900 17
Maverick Tube Corporation (7a) .............. 400 10
PRINTING & PUBLISHING (0.72 %)
Consolidated Graphics, Inc. (7a) ............ 1,150 17
Harte-Hanks Inc. ............................ 1,600 35
Topps Company, Inc. (The) (7a) .............. 1,800 19
RADIO & TELEVISION BROADCASTING (3.06 %)
Cox Radio, Inc. - Class A (7a) .............. 800 80
Emmis Communications
Corporation - Class A (7a) ............... 800 100
Hispanic Broadcasting Corp. (7a) ............ 250 23
See Notes to the Financial Statements, which is an integral part of this report.
102 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (CONTINUED)
Pegasus Communications
Corporation (7a) .......................... 300 $ 29
Price Communications
Corporation (7a) .......................... 200 6
Univision Communications Inc. -
Class A (7a) .............................. 150 15
USA Networks, Inc. (7a) ...................... 300 17
Young Broadcasting Inc. -
Class A (7a) .............................. 600 31
RADIO, TELEVISION, & COMPUTER STORES (0.33 %)
Tweeter Home Entertainment
Group, Inc. (7a) .......................... 900 32
REAL ESTATE (0.52 %)
Catellus Development
Corporation (7a) .......................... 1,600 21
Pinnacle Holdings Inc. (7a) .................. 700 30
RESEARCH & TESTING SERVICES (0.57 %)
ACNielsen Corporation (7a) ................... 1,000 25
Catalytica, Inc. (7a) ........................ 1,750 24
Meta Group, Inc. (7a) ........................ 350 7
RESTAURANTS (1.62 %)
Applebee's International, Inc. ............... 1,400 41
Brinker International, Inc. (7a) ............. 900 22
CEC Entertainment Inc. (7a) .................. 200 6
Outback Steakhouse, Inc. (7a) ................ 1,100 29
P.F. Chang's
China Bistro, Inc. (7a) ................... 400 10
Papa John's
International, Inc. (7a) .................. 700 18
Rare Hospitality
International, Inc. (7a) .................. 600 13
Sonic Corp. (7a) ............................. 700 20
RETAIL TRADE (1.26 %)
1-800-FLOWERS.COM, Inc. (7a) ................. 1,200 13
Barnes & Noble, Inc. (7a) .................... 600 12
CDW Computer Centers, Inc. (7a) .............. 800 63
Global Imaging Systems, Inc. (7a) ............ 1,000 12
Insight Enterprises, Inc. (7a) ............... 600 24
SAVINGS INSTITUTIONS (0.13 %)
Telebanc Financial
Corporation (7a) .......................... 500 13
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
SECURITY & COMMODITY BROKERS (1.76 %)
Affiliated Managers
Group, Inc. (7a) .......................... 1,500 $ 61
AmeriCredit Corp. (7a) ....................... 1,600 30
Investment Technology
Group, Inc. ............................... 400 12
Legg Mason, Inc. ............................. 500 18
Waddell & Reed Financial, Inc. -
Class A ................................... 1,900 52
SOCIAL SERVICES (0.24 %)
Bright Horizons Family
Solutions, Inc. (7a) ...................... 1,300 24
TELECOMMUNICATIONS (1.97 %)
AT&T Canada Inc. (7a) ........................ 900 36
ICG Communications, Inc. (7a) ................ 1,300 24
ITC Deltacom, Inc. (7a) ...................... 1,200 33
Time Warner Telecom Inc. -
Class A (7a) .............................. 1,000 50
United States Cellular
Corporation (7a) .......................... 500 50
TEXTILE MILL PRODUCTS (0.50 %)
Mohawk Industries, Inc. (7a) ................. 1,850 49
TRANSPORTATION & PUBLIC UTILITIES (0.18 %)
C.H. Robinson Worldwide, Inc. ................ 100 4
Eagle USA Airfreight, Inc. (7a) .............. 100 4
Preview Travel, Inc. (7a) .................... 200 10
TRUCKING & WAREHOUSING (0.62 %)
Swift Transportation
Co., Inc. (7a) ............................ 1,800 32
USFreightways Corporation .................... 600 29
VARIETY STORES (1.10 %)
Cost Plus, Inc. (7a) ......................... 1,050 37
Dollar Tree Stores, Inc. (7a) ................ 1,200 58
Family Dollar Stores, Inc. ................... 800 13
WHOLESALE TRADE DURABLE GOODS (1.08 %)
Patterson Dental Company (7a) ................ 650 28
PSS World Medical, Inc. (7a) ................. 2,100 20
SCP Pool Corporation (7a) .................... 200 5
Tech Data Corporation (7a) ................... 900 24
Watsco, Inc. ................................. 2,500 29
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 103
<PAGE>
SCHEDULE OF INVESTMENTS
WRL T. ROWE PRICE SMALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
-------- -------
COMMON STOCKS (CONTINUED)
WHOLESALE TRADE NONDURABLE GOODS (0.31 %)
U.S. Foodservice (7a) .................... 1,800 $ 30
------
Total Common Stocks
(cost: $ 7,354) ...................................... 9,391
------
Total Investment Securities
(cost: $ 7,354) ...................................... $9,391
======
SUMMARY
Investments, at market value.............. 95.59 % $9,391
Other assets
in excess of liabilities............... 4.41 % 433
-------- ------
Net assets ............................... 100.00 % $9,824
======== ======
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE DEBT SECURITIES (1.38 %) (7F)
INDUSTRIAL MACHINERY & EQUIPMENT (1.29 %)
Harnischfeger Industries, Inc. (7h)
8.90 %, due 03/01/2022 ...................... $ 25 $ 10
Harnischfeger Industries, Inc. (7h)
8.70 %, due 06/15/2022 ...................... 125 50
Harnischfeger Industries, Inc. (7h)
7.25 %, due 12/15/2025 ...................... 25 10
Harnischfeger Industries, Inc. (7h)
6.88 %, due 02/15/2027 ...................... 40 16
MORTGAGE BANKERS AND BROKERS (0.09 %)
ContiFinancial Corporation
8.38 %, due 08/15/2003 ...................... 50 6
----
Total Corporate Debt Securities
(cost: $ 143) .................................. 92
----
CONVERTIBLE BONDS (1.11 %)
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (1.11 %)
Sunbeam Corporation - 144A (7c)
Zero coupon, due 03/25/2018 ................. 500 74
----
Total Convertible Bonds
(cost: $ 92) ............................................. 74
----
NUMBER OF MARKET
SHARES VALUE
--------- -------
PREFERRED STOCKS (1.41 %)
PRINTING & PUBLISHING (1.41 %)
News Corporation
Limited (The) - ADR ......................... 2,800 $ 94
-----
Total Preferred Stocks
(cost: $ 86) ............................................. 94
-----
COMMON STOCKS (83.12 %)
AGRICULTURE (1.69 %)
Michael Foods, Inc. ........................... 4,600 113
BEVERAGES (1.62 %)
Pepsi Bottling Group, Inc. (The) .............. 6,500 108
CHEMICALS & ALLIED PRODUCTS (3.56 %)
Geon Company (The) ............................. 3,200 104
Olin Corporation ............................... 1,900 38
OM Group, Inc. ................................. 2,800 96
COMMERCIAL BANKS (5.59 %)
Bank of New York
Company, Inc. (The) (7i) .................... 2,800 112
Comerica Incorporated .......................... 1,700 79
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
FleetBoston Financial Corp. ................. 1,900 $ 66
Mercantile Bankshares Corporation ........... 1,800 57
Peoples Heritage Financial
Group, Inc. .............................. 4,000 60
COMMUNICATION (1.50 %)
NTL Incorporated (7a) ....................... 800 100
COMMUNICATIONS EQUIPMENT (3.56 %)
Comverse Technology, Inc. (7a) .............. 500 72
Digital Microwave Corp. (7a) ................ 3,800 89
Newbridge Networks
Corporation (7a) ......................... 3,400 77
COMPUTER & DATA PROCESSING SERVICES (1.68 %)
Amdocs, Inc. (7a) ........................... 1,900 66
Paradigm Geophysical Ltd. (7a) .............. 5,300 26
Technology Solutions
Company (7a) ............................. 600 20
COMPUTER & OFFICE EQUIPMENT (7.15 %)
3Com Corporation (7a) ....................... 1,900 89
International Business
Machines Corp. ........................... 600 65
S3 Incorporated (7a) ........................ 8,400 97
Seagate Technology, Inc. (7a) (7i) .......... 4,900 227
DEPARTMENT STORES (3.10 %)
Federated Department
Stores, Inc. (7a) ........................ 4,100 207
ELECTRONIC COMPONENTS & ACCESSORIES (2.63 %)
Advanced Micro Devices, Inc. (7a) ........... 3,300 95
Cypress Semiconductor
Corporation (7a) ......................... 2,500 81
FOOD & KINDRED PRODUCTS (8.26 %)
Hormel Foods Corporation .................... 4,500 183
John B. Sanfilippo & Son, Inc. (7a) ......... 4,900 20
Nabisco Group Holdings ...................... 18,000 191
Philip Morris Companies Inc. ................ 2,400 56
Tyson Foods, Inc. - Class A ................. 6,300 102
FOOD STORES (5.76 %)
Delhaize America, Inc. - Class A ............ 1,000 20
Delhaize America, Inc. - Class B ............ 5,500 115
Hannaford Bros. Co. ......................... 1,300 90
Safeway Inc. (7a) ........................... 4,500 160
INDUSTRIAL MACHINERY & EQUIPMENT (2.21 %)
Harnischfeger Industries, Inc. (7a) ......... 18,700 8
Ingersoll-Rand Company ...................... 1,100 61
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 105
<PAGE>
SCHEDULE OF INVESTMENTS
WRL SALOMON ALL CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
INDUSTRIAL MACHINERY & EQUIPMENT (CONTINUED)
SpeedFam International, Inc. (7a) ........... 6,100 $ 79
LIFE INSURANCE (1.42 %)
Protective Life Corporation ................. 3,000 95
METAL CANS & SHIPPPING CONTAINERS (1.54 %)
Crown Cork & Seal Company, Inc. ............. 4,600 103
OIL & GAS EXTRACTION (3.90 %)
Devon Energy Corporation .................... 5,100 168
R&B Falcon Corporation (7a) ................. 7,000 93
PAPER & ALLIED PRODUCTS (1.44 %)
International Paper Company ................ 1,700 96
PETROLEUM REFINING (5.89 %)
Conoco Inc. - Class B ....................... 2,600 65
Suncor Energy Inc. .......................... 1,900 79
Tesoro Petroleum
Corporation (7a) ......................... 8,500 98
Tosco Corporation ........................... 2,800 76
Valero Energy Corporation ................... 3,800 76
PHARMACEUTICALS (1.56 %)
Pharmacia & Upjohn, Inc. .................... 2,300 104
PRIMARY METAL INDUSTRIES (1.85 %)
AK Steel Holding Corporation ................ 4,600 87
LTV Corporation, (The) ...................... 9,000 37
PRINTING & PUBLISHING (1.33 %)
Primedia, Inc. (7a) ......................... 5,400 89
RADIO & TELEVISION BROADCASTING (2.32 %)
Hearst-Argyle Television, Inc. (7a) ......... 3,200 85
Sinclair Broadcast Group, Inc. -
Class A (7a) ............................. 5,700 70
SECURITY & COMMODITY BROKERS (1.27 %)
Goldman Sachs Group, Inc. (The) ............. 900 85
TELECOMMUNICATIONS (8.81 %)
AT&T Corp. - Liberty Media
Group - Class A (7a) ..................... 1,900 108
Bell Atlantic Corporation ................... 2,000 123
GTE Corporation ............................. 1,300 92
MCI WORLDCOM, Inc. (7a) ..................... 1,200 64
Rogers Cantel Mobile
Communications Inc. -
Class B (7a) ............................. 3,700 135
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
SBC Communications Inc. ..................... 1,400 $ 68
TRUCKING & WAREHOUSING (1.03 %)
United Parcel Service, Inc. -
Class B .................................. 1,000 69
VARIETY STORES (2.45 %)
Costco Wholesale Corporation (7a) ........... 1,800 164
------
Total Common Stocks
(cost: $ 5,354)
5,558
------
NUMBER OF MARKET
CONTRACTS VALUE
---------- -------
OPTIONS (0.54 %)
Amazon.Com, Inc. Puts Strike $ 80,
Expires 01/22/2000 ....................... 1 $ 1
Rite Aid Corporation Puts Strike $ 10,
Expires 01/22/2000 ....................... 6 (7g)
S&P 500 Index Calls Strike $ 1,375,
Expires 01/22/2000 ....................... 3 31
S&P 500 Index Puts Strike $ 1,425,
Expires 01/22/2000 ....................... 3 4
------
Total Options
(cost: $ 37)................................. 36
------
PRINCIPAL MARKET
AMOUNT VALUE
------------- -------
SHORT-TERM OBLIGATIONS (12.14 %)
State Street Bank and Trust
Company (7e)
3.00 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 812 on
01/03/2000 ............................... $ 812 $ 812
------
Total Short-Term Obligations
(cost: $ 812)................................
812
------
Total Investment Securities
(cost: $ 6,524) ............................ $6,666
======
SUMMARY
Investments, at market value ................ 99.70 % $6,666
Other assets in
excess of liabilities .................... 0.30 % 20
--------- ------
Net assets .................................. 100.00 % $6,686
========= ======
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (91.72 %)
AMUSEMENT & RECREATION SERVICES (0.78 %)
Premier Parks Inc. (7a) ..................... 10,100 $ 292
APPAREL & ACCESSORY STORES (2.06 %)
American Eagle
Outfitters, Inc. (7a) ..................... 17,000 765
BUSINESS SERVICES (14.27 %)
Akamai Technologies, Inc. (7a) ............... 900 295
Broadbase Software, Inc. (7a) ................ 1,500 169
Exodus Communications, Inc. (7a) ............. 7,400 657
Getty Images, Inc. (7a) ...................... 16,900 826
Lamar Advertising Company (7a) ............... 12,900 781
Lycos, Inc. (7a) ............................. 9,200 732
Omnicom Group, Inc. .......................... 7,500 750
Redback Networks Inc. (7a) ................... 3,900 692
United Rentals, Inc. (7a) .................... 6,400 110
Viant Corporation (7a) ....................... 3,000 297
COMMUNICATIONS EQUIPMENT (4.13 %)
C-COR Electronics, Inc. (7a) ................. 3,400 261
Ciena Corporation (7a) ....................... 5,000 288
CommScope, Inc. (7a) ......................... 5,800 234
Ditech Communications
Corporation (7a) .......................... 2,500 234
Powerwave Technologies, Inc. (7a) ............ 3,100 181
Sycamore Networks, Inc. (7a) ................. 1,100 339
COMPUTER & DATA PROCESSING SERVICES (25.62 %)
Active Software, Inc. (7a) ................... 2,300 212
Ariba, Inc. (7a) ............................. 4,200 745
Art Technology Group, Inc. (7a) .............. 4,400 564
BEA Systems, Inc. (7a) ....................... 5,000 350
Broadvision, Inc. (7a) ....................... 2,300 391
Check Point Software
Technologies, Ltd. (7a) ................... 3,000 596
Commerce One, Inc. (7a) ...................... 2,700 531
F5 Networks, Inc. (7a) ....................... 2,200 251
Informatica Corporation (7a) ................. 4,400 468
InfoSpace.com, Inc. (7a) ..................... 4,900 1,048
InterTrust Technologies
Corporation (7a) .......................... 500 59
Microstrategy Incorporated (7a) .............. 3,800 798
Rare Medium Group, Inc. (7a) ................. 12,600 430
USWeb Corporation (7a) ....................... 14,700 653
Verio Inc. (7a) .............................. 6,600 305
Verisign, Inc. (7a) .......................... 5,500 1,049
Veritas Software Corporation (7a) ............ 3,350 479
Vignette Corporation (7a) .................... 3,700 603
COMPUTER & OFFICE EQUIPMENT (4.23 %)
Emulex Corporation (7a) ...................... 8,700 978
NUMBER OF MARKET
SHARES VALUE
--------- ---------
COMMON STOCKS (CONTINUED)
COMPUTER & OFFICE EQUIPMENT (CONTINUED)
Juniper Networks, Inc. (7a) ................... 900 $ 306
VA Linux Systems, Inc. (7a) ................... 1,400 289
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.94 %)
Gemstar International Group
Limited (7a) ............................... 4,900 349
ELECTRONIC COMPONENTS & ACCESSORIES (12.41 %)
Atmel Corporation (7a) ........................ 11,400 337
Cypress Semiconductor
Corporation (7a) ........................... 10,500 340
Fairchild Semiconductor
Corporation - Class A (7a) ................. 7,600 226
Finisar Corporation (7a) ...................... 800 72
Flextronics International Ltd. (7a) ........... 7,200 331
Integrated Device
Technology, Inc. (7a) ...................... 6,200 180
JDS Uniphase Corporation (7a) ................. 6,000 968
LSI Logic Corporation (7a) .................... 4,300 290
Microchip Technology
Incorporated (7a) .......................... 3,400 233
MRV Communications, Inc. (7a) ................. 7,300 459
QLogic Corporation (7a) ....................... 1,600 256
Triquint Semiconductor, Inc. (7a) ............. 8,300 923
FOOD STORES (0.47 %)
Whole Foods Market, Inc. (7a) ................. 3,800 176
INDUSTRIAL MACHINERY & EQUIPMENT (3.52 %)
Cooper Cameron Corporation (7a) ............... 11,200 548
Mettler-Toledo
International Inc. (7a) .................... 19,900 760
INSTRUMENTS & RELATED PRODUCTS (2.29 %)
Cytyc Corporation (7a) ........................ 4,700 287
PE Corporation - PE Biosystems
Group ...................................... 2,900 349
PerkinElmer, Inc. ............................. 5,200 217
OIL & GAS EXTRACTION (1.39 %)
Diamond Offshore Drilling, Inc. ............... 10,800 330
EOG Resources, Inc. ........................... 10,700 188
PHARMACEUTICALS (6.83 %)
Allscripts, Inc. (7a) ......................... 12,200 537
Medicis Pharmaceutical
Corporation (7a) ........................... 10,600 451
Medimmune, Inc. (7a) .......................... 5,900 978
Teva Pharmaceutical
Industries Ltd. - ADR ...................... 8,000 574
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 107
<PAGE>
SCHEDULE OF INVESTMENTS
WRL PILGRIM BAXTER MID CAP GROWTH (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- -------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (2.61 %)
Infinity Broadcasting Corp. -
Class A (7a) .............................. 17,250 $ 624
Univision Communications Inc. -
Class A (7a) .............................. 3,400 347
RADIO, TELEVISION, & COMPUTER STORES (2.29 %)
Circuit City Stores - Circuit
City Group ................................ 8,400 379
Tandy Corporation ............................ 9,600 472
RESEARCH & TESTING SERVICES (1.00 %)
Celgene Corporation (7a) ..................... 5,300 371
RETAIL TRADE (5.10 %)
Insight Enterprises, Inc. (7a) ............... 8,500 345
Tiffany & Co. ................................ 8,400 750
Zale Corporation (7a) ........................ 16,600 803
SECURITY & COMMODITY BROKERS (1.78 %)
Ameritrade Holding Corporation -
Class A (7a) .............................. 11,800 256
E*Trade Group, Inc. (7a) ..................... 15,600 408
-------
Total Common Stocks
(cost: $ 24,325) ......................................... 34,122
-------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM OBLIGATIONS (7.62 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 2,836 on
01/03/2000 ................................ $ 2,835 $ 2,835
-------
Total Short-Term Obligations
(cost: $ 2,835) ............................. 2,835
-------
Total Investment Securities
(cost: $ 27,160)
$36,957
=======
SUMMARY
Investments, at market value ................. 99.34 % $36,957
Other assets in
excess of liabilities ..................... 0.66 % 244
------- -------
Net assets ................................... 100.00 % $37,201
======= =======
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
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (93.09 %)
AEROSPACE (0.30 %)
Cordant Technologies Inc. ..................... 300 $ 10
AIR TRANSPORTATION (0.33 %)
Alaska Air Group, Inc. (7a) ................... 300 11
AMUSEMENT & RECREATION SERVICES (0.59 %)
MGM Grand, Inc. (7a) .......................... 400 20
APPAREL & ACCESSORY STORES (2.69 %)
Abercrombie & Fitch Co. -
Class A (7a) ............................... 1,100 29
Ross Stores, Inc. ............................. 2,000 36
TJX Companies, Inc. (The) ..................... 1,250 26
APPAREL PRODUCTS (0.38 %)
Nautica Enterprises, Inc. (7a) ................ 100 1
V.F. Corporation .............................. 400 12
AUTO REPAIR, SERVICES & PARKING (1.03 %)
Hertz Corporation (The) -
Class A .................................... 700 35
AUTOMOTIVE (0.33 %)
Harley-Davidson, Inc. ......................... 100 6
Navistar International
Corporation (7a) ........................... 100 5
BUSINESS CREDIT INSTITUTIONS (0.53 %)
Metris Companies Inc. ......................... 500 18
BUSINESS SERVICES (2.01 %)
Redback Networks Inc. (7a) .................... 100 18
Young & Rubicam Inc. .......................... 700 50
CHEMICALS & ALLIED PRODUCTS (2.19 %)
Cytec Industries Inc. (7a) .................... 700 16
Dexter Corporation (The) ...................... 200 8
Dial Corporation (The) ........................ 1,000 24
Lauder, Estee Companies, Inc. .................
(The) - Class A ............................ 100 5
Sherwin-Williams Company (The) ................ 1,000 21
COMMERCIAL BANKS (4.52 %)
Associated Banc-Corp .......................... 500 17
City National Corporation ..................... 700 23
Mercantile Bankshares Corporation ............. 1,000 32
North Fork Bancorporation, Inc. ............... 1,300 23
Pacific Century Financial
Corporation ................................ 750 14
Union Planters Corporation .................... 700 28
UnionBanCal Corporation ....................... 400 16
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS EQUIPMENT (0.80 %)
Sawtek Inc. (7a) .............................. 400 $ 27
COMPUTER & DATA PROCESSING SERVICES (14.38 %)
Check Point Software
Technologies, Ltd. (7a) .................... 200 40
Compuware Corporation (7a) .................... 1,100 41
Convergys Corporation (7a) .................... 2,000 61
iXL Enterprises, Inc. (7a) .................... 500 28
Legato Systems, Inc. (7a) ..................... 400 28
Proxicom, Inc. (7a) ........................... 300 37
Rational Software
Corporation (7a) ........................... 400 20
Razorfish Inc. (7a) ........................... 300 29
Sabre Group Holdings, Inc.,
(The) (7a) ................................. 950 49
Symantec Corporation (7a) ..................... 300 18
Synopsys, Inc. (7a) ........................... 300 20
USWeb Corporation (7a) ........................ 550 24
Verisign, Inc. (7a) ........................... 200 38
Veritas Software Corporation (7a) ............. 150 21
Vignette Corporation (7a) ..................... 200 33
COMPUTER & OFFICE EQUIPMENT (1.65 %)
Extreme Networks, Inc. (7a) ................... 400 33
Lexmark International Group, Inc. -
Class A (7a) ............................... 250 23
CONSTRUCTION (0.21 %)
Centex Corporation ............................ 300 7
EDUCATIONAL SERVICES (0.38 %)
DeVRY Inc. (7a) ............................... 700 13
ELECTRIC SERVICES (4.82 %)
Allegheny Energy, Inc. ........................ 800 22
Constellation Energy Group, Inc. .............. 500 15
DTE Energy Company ............................ 900 28
Energy East Corporation ....................... 1,400 29
GPU, Inc. ..................................... 550 16
OGE Energy Corp. .............................. 300 6
Pinnacle West Capital Corporation ............. 1,050 32
TECO Energy, Inc. ............................. 800 15
ELECTRIC, GAS & SANITARY SERVICES (1.27 %)
LG & E Energy Corp. ........................... 1,000 17
Northern States Power Company ................. 1,300 25
Sierra Pacific Resources ...................... 44 1
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (0.38 %)
American Power Conversion
Corporation (7a) ........................... 500 13
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 109
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DREYFUS MID CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & ACCESSORIES (10.85 %)
Altera Corporation (7a) ...................... 1,100 $ 54
Jabil Circuit, Inc. (7a) ..................... 700 51
Linear Technology Corporation ................ 550 39
Maxim Integrated Products (7a) ............... 2,200 103
RF Micro Devices, Inc. (7a) .................. 450 31
Sanmina Corporation (7a) ..................... 500 50
Vitesse Semiconductor
Corporation (7a) .......................... 750 39
FABRICATED METAL PRODUCTS (0.44 %)
Parker-Hannifin Corporation .................. 300 15
FOOD & KINDRED PRODUCTS (0.83 %)
Hormel Foods Corporation ..................... 450 18
Lancaster Colony Corporation ................. 300 10
FURNITURE & FIXTURES (1.42 %)
Johnson Controls, Inc. ....................... 300 17
Leggett & Platt, Incorporated ................ 700 15
Miller, (Herman) Inc. ........................ 700 16
GAS PRODUCTION & DISTRIBUTION (0.80 %)
Keyspan Corporation .......................... 650 15
Peoples Energy Corporation ................... 350 12
HEALTH SERVICES (0.68 %)
Health Management
Associates, Inc. - Class A (7a) ........... 400 5
Lincare Holdings Inc. (7a) ................... 400 14
Universal Health Services, Inc. -
Class B (7a) .............................. 100 4
HOTELS & OTHER LODGING PLACES (0.38 %)
Park Place Entertainment
Corporation (7a) .......................... 1,000 13
INDUSTRIAL MACHINERY & EQUIPMENT (1.42 %)
Briggs & Stratton Corporation ................ 350 19
Brunswick Corporation ........................ 500 11
Helix Technology Corporation ................. 400 18
INSTRUMENTS & RELATED PRODUCTS (0.62 %)
Waters Corporation (7a) ...................... 400 21
INSURANCE (2.69 %)
Mutual Risk Management Ltd. .................. 100 2
PMI Group, Inc. (The) ........................ 1,050 51
Radian Group, Inc. ........................... 300 14
Travelers Property Casualty Corp. -
Class A ................................... 700 24
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
LIFE INSURANCE (0.38 %)
Nationwide Financial
Services, Inc. - Class A .................. 450 $ 13
LUMBER & WOOD PRODUCTS (0.80 %)
Georgia-Pacific Corporation
(Timber Group) ............................ 300 7
Louisiana-Pacific Corporation ................ 1,400 20
MANUFACTURING INDUSTRIES (0.35 %)
Blyth Industries, Inc. (7a) .................. 500 12
MEDICAL INSTRUMENTS & SUPPLIES (1.42 %)
Biomet, Incorporated ......................... 950 38
Visx, Incorporated (7a) ...................... 200 10
MISC. GENERAL MERCHANDISE STORES (0.77 %)
BJ's Wholesale Club, Inc. (7a) ............... 700 26
OIL & GAS EXTRACTION (2.78 %)
Diamond Offshore Drilling, Inc. .............. 800 24
Santa Fe International
Corporation ............................... 700 18
Transocean Sedco Forex Inc. .................. 1,000 34
Vastar Resources, Inc. ....................... 300 18
PERSONAL SERVICES (0.92 %)
Block, (H & R) Inc. .......................... 700 31
PETROLEUM REFINING (1.54 %)
Murphy Oil Corporation ....................... 400 23
Ultramar Diamond Shamrock
Corporation ............................... 1,300 29
PHARMACEUTICALS (6.38 %)
Allergan, Inc. ............................... 700 35
Biochem Pharma Inc. (7a) ..................... 800 17
Biogen, Inc. (7a) ............................ 1,000 84
Chiron Corporation (7a) ...................... 700 30
Medimmune, Inc. (7a) ......................... 300 50
PRIMARY METAL INDUSTRIES (0.86 %)
AK Steel Holding Corporation ................. 400 8
Engelhard Corporation ........................ 1,100 21
PRINTING & PUBLISHING (2.04 %)
Belo (A.H.) Corporation - Class A ............ 1,300 25
Knight-Ridder, Inc. .......................... 200 12
Pulitzer Inc. ................................ 100 4
Washington Post Company (The) -
Class B ................................... 50 28
See Notes to the Financial Statements, which is an integral part of this report.
110 WRL SERIES FUND, INC.
<PAGE>
SCHEDULE OF INVESTMENTS
WRL DREYFUS MID CAP (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT SHARE AMOUNTS) IN THOUSANDS
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
RADIO & TELEVISION BROADCASTING (1.45 %)
Hispanic Broadcasting Corp. (7a) ......... 200 $ 18
Univision Communications Inc. -
Class A (7a) .......................... 300 31
RAILROADS (0.44 %)
Kansas City Southern
Industries, Inc. ...................... 200 15
RESEARCH & TESTING SERVICES (1.00 %)
DST Systems, Inc. (7a) ................... 200 15
Quintiles Transnational Corp. (7a) ....... 1,000 19
RESTAURANTS (0.77 %)
Bob Evans Farms, Inc. .................... 600 9
Brinker International, Inc. (7a) ......... 700 17
RETAIL TRADE (1.42 %)
Zale Corporation (7a) .................... 1,000 48
RUBBER & MISC. PLASTIC PRODUCTS (0.77 %)
Sealed Air Corporation (7a) .............. 500 26
SAVINGS INSTITUTIONS (0.89 %)
Dime Bancorp, Inc. ....................... 1,350 20
Golden West Financial
Corporation ........................... 300 10
SECURITY & COMMODITY BROKERS (2.45 %)
Edwards (A.G.), Inc. ..................... 1,000 32
Paine Webber Group, Inc. ................. 250 10
Price (T. Rowe) Associates ............... 1,100 41
TELECOMMUNICATIONS (1.39 %)
CenturyTel, Inc. ......................... 50 2
Telephone and Data Systems, Inc. ......... 200 25
United States Cellular
Corporation (7a) ...................... 200 20
TRANSPORTATION EQUIPMENT (0.89 %)
Trinity Industries, Inc. ................. 1,050 30
NUMBER OF MARKET
SHARES VALUE
--------- ------
COMMON STOCKS (CONTINUED)
TRUCKING & WAREHOUSING (0.62 %)
CNF Transportation Inc. .................. 200 $ 7
USFreightways Corporation ................ 300 14
VARIETY STORES (1.36 %)
Dollar Tree Stores, Inc. (7a) ............ 950 46
WATER TRANSPORTATION (1.06 %)
Tidewater Inc. ........................... 1,000 36
WHOLESALE TRADE DURABLE GOODS (0.27 %)
Patterson Dental Company (7a) ............ 200 9
WHOLESALE TRADE NONDURABLE GOODS (1.15 %)
SUPERVALU INC ............................ 1,050 21
U.S. Foodservice (7a) .................... 1,100 18
------
Total Common Stocks
(cost: $ 2,986) .......................... 3,150
------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
SHORT-TERM OBLIGATIONS (5.41 %)
Investors Bank & Trust
Company (7e)
3.06 %, Repurchase Agreement
dated 12/31/1999 to be
repurchased at $ 183 on
01/03/2000 ............................ $ 183 $ 183
------
Total Short-Term Obligations
(cost: $ 183) ........................................ 183
------
Total Investment Securities
(cost: $ 3,169)....................................... $3,333
======
SUMMARY
Investments, at market value ............. 98.50 % $3,333
Other assets in
excess of liabilities ................. 1.50 % 51
------ ------
Net assets ............................... 100.00 % $3,384
====== ======
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 111
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL WRL
J.P. MORGAN AEGON JANUS JANUS
MONEY MARKET BOND GROWTH GLOBAL
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 426,135 $ 156,957 $ 1,999,065 $ 969,022
========= ========= =========== ===========
Foreign cash, at cost .......................................... $ 0 $ 0 $ 0 $ 0
========= ========= =========== ===========
Investments in securities, at market value ..................... $ 426,135 $ 148,568 $ 4,128,268 $ 1,918,803
Cash ........................................................... 1,438 3,307 52 0
Foreign cash ................................................... 0 0 0 0
Cash collateral for securities on loan ......................... 0 21,584 434,975 197,268
Receivables:
Securities sold ............................................... 0 0 16,195 5,569
Interest ...................................................... 2,428 2,075 374 31
Dividends ..................................................... 0 0 563 209
Dividend reclaims receivable .................................. 0 0 8 521
Foreign currency contracts .................................... 0 0 0 8,469
Other ......................................................... 0 84 2,487 956
--------- --------- ----------- -----------
Total assets ................................................. 430,001 175,618 4,582,922 2,131,826
--------- --------- ----------- -----------
LIABILITIES:
Securities purchased ........................................... 0 0 1,605 825
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 128 60 2,596 1,204
Due to custodian .............................................. 0 0 0 98
Dividends to shareholders ..................................... 52 0 0 0
Deposits for securities on loan ............................... 0 21,584 434,975 197,268
Foreign currency contracts .................................... 0 0 0 5,189
Other fees .................................................... 10 89 2,506 1,032
--------- --------- ----------- -----------
Total liabilities ............................................ 190 21,733 441,682 205,616
--------- --------- ----------- -----------
Net assets .................................................. $ 429,811 $ 153,885 $ 4,141,240 $ 1,926,210
========= ========= =========== ===========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 450,000 50,000 100,000 100,000
========= ========= =========== ===========
Capital stock ($ .01 par value) ................................ $ 4,298 $ 145 $ 531 $ 514
Additional paid-in capital ..................................... 425,513 166,346 1,976,742 933,982
Accumulated undistributed (distributions in excess of) net
investment income (loss) ..................................... 0 520 5,371 2,107
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ........................................ 0 (4,737) 29,393 36,586
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 0 (8,389) 2,129,203 949,781
Futures contracts ............................................. 0 0 0 0
Foreign currency transactions ................................. 0 0 0 3,240
--------- --------- ----------- -----------
Net assets applicable to outstanding shares of capital ......... $ 429,811 $ 153,885 $ 4,141,240 $ 1,926,210
========= ========= =========== ===========
Shares outstanding ............................................. 429,811 14,508 53,096 51,419
========= ========= =========== ===========
Net asset value and offering price per share ................... $ 1.00 $ 10.61 $ 78.00 $ 37.46
========= ========= =========== ===========
</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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL
LKCM VKAM ALGER WRL
STRATEGIC EMERGING AGGRESSIVE AEGON
TOTAL RETURN GROWTH GROWTH BALANCED
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 492,452 $ 925,204 $ 617,215 $ 90,325
========= =========== =========== =========
Foreign cash, at cost .......................................... $ 0 $ 0 $ 0 $ 0
========= =========== =========== =========
Investments in securities, at market value ..................... $ 621,207 $ 1,917,261 $ 1,121,863 $ 107,505
Cash ........................................................... 43 0 0 0
Foreign cash ................................................... 0 0 0 0
Cash collateral for securities on loan ......................... 33,637 329,637 189,993 3,640
Receivables:
Securities sold ............................................... 0 0 0 4,121
Interest ...................................................... 3,119 50 30 541
Dividends ..................................................... 474 152 60 128
Dividend reclaims receivable .................................. 1 1 0 0
Foreign currency contracts .................................... 0 0 0 0
Other ......................................................... 201 1,627 822 19
--------- ----------- ----------- ---------
Total assets ................................................. 658,682 2,248,728 1,312,768 115,954
--------- ----------- ----------- ---------
LIABILITIES:
Securities purchased ........................................... 0 0 3,569 3,131
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 416 1,166 703 74
Due to custodian .............................................. 0 295 157 612
Dividends to shareholders ..................................... 0 0 0 0
Deposits for securities on loan ............................... 33,637 329,637 189,993 3,640
Foreign currency contracts .................................... 0 0 0 0
Other fees .................................................... 213 1,605 835 24
--------- ----------- ----------- ---------
Total liabilities ............................................ 34,266 332,703 195,257 7,481
--------- ----------- ----------- ---------
Net assets .................................................. $ 624,416 $ 1,916,025 $ 1,117,511 $ 108,473
========= =========== =========== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 75,000 75,000 75,000 50,000
========= =========== =========== =========
Capital stock ($ .01 par value) ................................ $ 371 $ 416 $ 336 $ 86
Additional paid-in capital ..................................... 480,457 871,983 590,725 96,815
Accumulated undistributed (distributions in excess of) net
investment income (loss) ...................................... 1,103 18,967 16,357 572
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ......................................... 13,730 32,602 5,445 (6,180)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 128,755 992,057 504,648 17,180
Futures contracts ............................................. 0 0 0 0
Foreign currency transactions ................................. 0 0 0 0
--------- ----------- ----------- ---------
Net assets applicable to outstanding shares of capital ......... $ 624,416 $ 1,916,025 $ 1,117,511 $ 108,473
========= =========== =========== =========
Shares outstanding ............................................. 37,064 41,647 33,584 8,568
========= =========== =========== =========
Net asset value and offering price per share ................... $ 16.85 $ 46.01 $ 33.28 $ 12.66
========= =========== =========== =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 113
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL
FEDERATED WRL WRL WRL
GROWTH & DEAN ASSET C.A.S.E. NWQ
INCOME ALLOCATION GROWTH VALUE EQUITY
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 80,657 $ 256,543 $ 89,054 $ 119,532
======== ========= ======== =========
Foreign cash, at cost .......................................... $ 0 $ 0 $ 0 $ 0
======== ========= ======== =========
Investments in securities, at market value ..................... $ 74,094 $ 252,514 $ 93,764 $ 135,593
Cash ........................................................... 50 13,172 0 50
Foreign cash ................................................... 0 0 0 0
Cash collateral for securities on loan ......................... 2,245 10,601 6,122 7,895
Receivables:
Securities sold ............................................... 1,892 0 2,001 1,923
Interest ...................................................... 1 1,170 5 2
Dividends ..................................................... 296 497 48 208
Dividend reclaims receivable .................................. 0 0 0 0
Foreign currency contracts .................................... 0 0 0 0
Other ......................................................... 8 98 52 48
-------- --------- -------- ---------
Total assets ................................................. 78,586 278,052 101,992 145,719
-------- --------- -------- ---------
LIABILITIES:
Securities purchased ........................................... 0 5,459 1,242 521
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 48 182 64 92
Due to custodian .............................................. 0 0 893 0
Dividends to shareholders ..................................... 0 0 0 0
Deposits for securities on loan ............................... 2,245 10,601 6,122 7,895
Foreign currency contracts .................................... 0 0 0 0
Other fees .................................................... 13 103 63 53
-------- --------- -------- ---------
Total liabilities ............................................ 2,306 16,345 8,384 8,561
-------- --------- -------- ---------
Net assets .................................................. $ 76,280 $ 261,707 $ 93,608 $ 137,158
======== ========= ======== =========
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 50,000 75,000 50,000 50,000
======== ========= ======== =========
Capital stock ($ .01 par value) ................................ $ 70 $ 216 $ 59 $ 107
Additional paid-in capital ..................................... 81,237 263,920 83,333 134,494
Accumulated undistributed (distributions in excess of) net
investment income (loss) ..................................... 1,776 2,168 6,098 569
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ........................................ (240) (568) (592) (14,073)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... (6,563) (4,029) 4,710 16,061
Futures contracts ............................................. 0 0 0 0
Foreign currency transactions ................................. 0 0 0 0
-------- --------- -------- ---------
Net assets applicable to outstanding shares of capital ......... $ 76,280 $ 261,707 $ 93,608 $ 137,158
======== ========= ======== =========
Shares outstanding ............................................. 6,994 21,574 5,961 10,742
======== ========= ======== =========
Net asset value and offering price per share ................... $ 10.91 $ 12.13 $ 15.70 $ 12.77
======== ========= ======== =========
</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 DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL
GE/SCOTTISH WRL WRL
EQUITABLE WRL THIRD J.P. MORGAN
INTERNATIONAL GE AVENUE REAL ESTATE
EQUITY U.S. EQUITY VALUE SECURITIES
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 25,778 $ 142,134 $ 17,388 $ 3,322
======== ========= ======== =======
Foreign cash, at cost .......................................... $ 6 $ 0 $ 0 $ 0
======== ========= ======== =======
Investments in securities, at market value ..................... $ 33,649 $ 165,674 $ 18,717 $ 3,077
Cash ........................................................... 0 13,519 492 86
Foreign cash ................................................... 5 0 0 0
Cash collateral for securities on loan ......................... 1,148 4,024 0 0
Receivables:
Securities sold ............................................... 0 0 0 9
Interest ...................................................... 6 47 2 1
Dividends ..................................................... 13 135 21 29
Dividend reclaims receivable .................................. 31 4 0 0
Foreign currency contracts .................................... 0 0 0 0
Other ......................................................... 6 61 0 0
-------- --------- -------- -------
Total assets ................................................. 34,858 183,464 19,232 3,202
-------- --------- -------- -------
LIABILITIES:
Securities purchased ........................................... 0 0 0 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 28 118 12 0
Due to custodian .............................................. 84 0 0 0
Dividends to shareholders ..................................... 0 0 0 0
Deposits for securities on loan ............................... 1,148 4,024 0 0
Foreign currency contracts .................................... 0 0 0 0
Other fees .................................................... 19 55 3 3
-------- --------- -------- -------
Total liabilities ............................................ 1,279 4,197 15 3
-------- --------- -------- -------
Net assets .................................................. $ 33,579 $ 179,267 $ 19,217 $ 3,199
======== ========= ======== =======
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 50,000 50,000 50,000 50,000
======== ========= ======== =======
Capital stock ($ .01 par value)................................. $ 24 $ 113 $ 18 $ 4
Additional paid-in capital ..................................... 24,863 154,411 18,240 3,751
Accumulated undistributed (distributions in excess of) net
investment income (loss) ...................................... 133 952 121 152
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ......................................... 689 (1) (541) (463)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 7,871 23,540 1,379 (245)
Futures contracts ............................................. 0 252 0 0
Foreign currency transactions ................................. (1) 0 0 0
--------- --------- -------- -------
Net assets applicable to outstanding shares of capital ......... $ 33,579 $ 179,267 $ 19,217 $ 3,199
======== ========= ======== =======
Shares outstanding ............................................. 2,351 11,352 1,838 397
======== ========= ======== =======
Net asset value and offering price per share ................... $ 14.28 $ 15.79 $ 10.45 $ 8.06
======== ========= ======== =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 115
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL WRL
GOLDMAN SACHS GOLDMAN SACHS T. ROWE PRICE T. ROWE PRICE
GROWTH SMALL CAP DIVIDEND GROWTH SMALL CAP
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 7,092 $ 2,489 $ 8,813 $ 7,354
======= ======= ======= =======
Foreign cash, at cost .......................................... $ 0 $ 0 $ 0 $ 0
======= ======= ======= =======
Investments in securities, at market value ..................... $ 8,115 $ 2,722 $ 8,635 $ 9,391
Cash ........................................................... 50 51 91 439
Foreign cash ................................................... 0 0 0 0
Cash collateral for securities on loan ......................... 0 0 0 0
Receivables:
Securities sold ............................................... 51 0 3 0
Interest ...................................................... 0 0 1 1
Dividends ..................................................... 5 2 15 1
Dividend reclaims receivable .................................. 0 0 0 0
Foreign currency contracts .................................... 0 0 0 0
Other ......................................................... 0 9 0 0
------- ------- ------- -------
Total assets ................................................. 8,221 2,784 8,745 9,832
------- ------- ------- -------
LIABILITIES:
Securities purchased ........................................... 10 0 8 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 0 0 0
Due to custodian .............................................. 0 0 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 .................................................... 7 1 7 8
------- ------- ------- -------
Total liabilities ............................................ 17 1 15 8
------- ------- ------- -------
Net assets .................................................. $ 8,204 $ 2,783 $ 8,730 $ 9,824
======= ======= ======= =======
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 50,000 50,000 50,000 50,000
======= ======= ======= =======
Capital stock ($ .01 par value) ................................ $ 7 $ 3 $ 9 $ 7
Additional paid-in capital ..................................... 7,078 2,413 9,104 7,658
Accumulated undistributed (distributions in excess of) net
investment income (loss) ...................................... 124 119 60 259
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ......................................... (28) 6 (265) (137)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 1,023 233 (178) 2,037
Futures contracts ............................................. 0 9 0 0
Foreign currency transactions ................................. 0 0 0 0
------- ------- ------- -------
Net assets applicable to outstanding shares of capital ......... $ 8,204 $ 2,783 $ 8,730 $ 9,824
======= ======= ======= =======
Shares outstanding ............................................. 698 247 943 732
======= ======= ======= =======
Net asset value and offering price per share ................... $ 11.75 $ 11.25 $ 9.26 $ 13.41
======= ======= ======= =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
116 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT DECEMBER 31, 1999
ALL AMOUNTS (EXCEPT PER SHARE AMOUNTS) IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL
SALOMON PILGRIM BAXTER DREYFUS
ALL CAP MID CAP GROWTH MID CAP
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost ............................. $ 6,524 $ 27,160 $ 3,169
======= ======== =======
Foreign cash, at cost .......................................... $ 0 $ 0 $ 0
======= ======== =======
Investments in securities, at market value ..................... $ 6,666 $ 36,957 $ 3,333
Cash ........................................................... 23 50 50
Foreign cash ................................................... 0 0 0
Cash collateral for securities on loan ......................... 0 0 0
Receivables:
Securities sold ............................................... 0 782 0
Interest ...................................................... 2 0 0
Dividends ..................................................... 5 3 3
Dividend reclaims receivable .................................. 0 0 0
Foreign currency contracts .................................... 0 0 0
Other ......................................................... 0 0 0
------- -------- -------
Total assets ................................................. 6,696 37,792 3,386
------- -------- -------
LIABILITIES:
Securities purchased ........................................... 5 564 0
Accounts payable and accrued liabilities:
Investment advisory fees ...................................... 0 24 0
Due to custodian .............................................. 0 0 0
Dividends to shareholders ..................................... 0 0 0
Deposits for securities on loan ............................... 0 0 0
Foreign currency contracts .................................... 0 0 0
Other fees .................................................... 5 3 2
------- -------- -------
Total liabilities ............................................ 10 591 2
------- -------- -------
Net assets .................................................. $ 6,686 $ 37,201 $ 3,384
======= ======== =======
NET ASSETS CONSISTS OF:
Capital stock shares authorized ................................ 50,000 50,000 50,000
======= ======== =======
Capital stock ($ .01 par value) ................................ $ 6 $ 21 $ 3
Additional paid-in capital ..................................... 6,199 25,419 3,218
Accumulated undistributed (distributions in excess of) net
investment income (loss) ...................................... 454 2,014 34
Accumulated undistributed net realized gain (loss) on
investment securities, futures contracts and foreign
currency transactions ......................................... (115) (50) (35)
Net unrealized appreciation (depreciation) on:
Investment securities ......................................... 142 9,797 164
Futures contracts ............................................. 0 0 0
Foreign currency transactions ................................. 0 0 0
------- -------- -------
Net assets applicable to outstanding shares of capital ......... $ 6,686 $ 37,201 $ 3,384
======= ======== =======
Shares outstanding ............................................. 598 2,096 316
======= ======== =======
Net asset value and offering price per share ................... $ 11.18 $ 17.75 $ 10.72
======= ======== =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 117
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL WRL
J.P. MORGAN AEGON JANUS JANUS
MONEY MARKET BOND GROWTH GLOBAL
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................. $ 14,151 $ 10,089 $ 16,741 $ 2,411
Dividends ............................................. 0 0 8,787 8,372
Foreign tax withheld .................................. 0 0 (235) (733)
-------- --------- ----------- ---------
Total investment income ............................. 14,151 10,089 25,293 10,050
-------- --------- ----------- ---------
EXPENSES:
Investment advisory fees .............................. 1,079 731 25,490 10,294
Printing and shareholder reports ...................... 24 57 622 388
Custody fees .......................................... 46 32 446 809
Administrative service fees ........................... 14 33 306 223
Legal fees ............................................ 2 4 35 25
Auditing and accounting fees .......................... 7 7 23 18
Directors fees ........................................ 0 1 11 8
Registration fees ..................................... 0 0 1 0
Other fees ............................................ 3 4 53 28
-------- --------- ----------- ---------
Total expenses ...................................... 1,175 869 26,987 11,793
Less:
Advisory fee waiver and expense reimbursement ......... 0 0 0 0
Fees paid indirectly .................................. 0 0 3 0
-------- --------- ----------- ---------
Net expenses ........................................ 1,175 869 26,984 11,793
-------- --------- ----------- ---------
Net investment income (loss) .......................... 12,976 9,220 (1,691) (1,743)
-------- --------- ----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................ 0 (411) 1,030,764 150,724
Futures contracts .................................... 0 0 0 1,754
Foreign currency transactions ........................ 0 0 1,083 113
-------- --------- ----------- ---------
Total net realized gain (loss) ...................... 0 (411) 1,031,847 152,591
-------- --------- ----------- ---------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................ 0 (13,729) 598,301 637,121
Futures contracts .................................... 0 0 0 0
Foreign currency transactions ........................ 0 0 138 5,233
-------- --------- ----------- ---------
Total change in unrealized appreciation
(depreciation) .................................... 0 (13,729) 598,439 642,354
-------- --------- ----------- ---------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions .......... 0 (14,140) 1,630,286 794,945
-------- --------- ----------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... $ 12,976 $ (4,920) $ 1,628,595 $ 793,202
======== ========= =========== =========
</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 YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL
LKCM VKAM ALGER WRL
STRATEGIC EMERGING AGGRESSIVE AEGON
TOTAL RETURN GROWTH GROWTH BALANCED
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................. $ 11,708 $ 3,609 $ 794 $ 2,123
Dividends ............................................. 5,496 1,246 1,600 995
Foreign tax withheld .................................. (30) (3) (11) (4)
-------- ---------- --------- ---------
Total investment income ............................. 17,174 4,852 2,383 3,114
-------- --------- --------- --------
EXPENSES:
Investment advisory fees .............................. 4,766 8,947 5,874 842
Printing and shareholder reports ...................... 155 373 308 41
Custody fees .......................................... 92 180 106 21
Administrative service fees ........................... 89 215 179 24
Legal fees ............................................ 10 24 20 3
Auditing and accounting fees .......................... 11 11 8 7
Directors fees ........................................ 3 8 6 1
Registration fees ..................................... 0 1 1 0
Other fees ............................................ 14 24 17 3
-------- --------- --------- --------
Total expenses ...................................... 5,140 9,783 6,519 942
Less:
Advisory fee waiver and expense reimbursement ......... 0 0 0 0
Fees paid indirectly .................................. 0 0 0 0
-------- --------- --------- --------
Net expenses ........................................ 5,140 9,783 6,519 942
-------- --------- --------- --------
Net investment income (loss) .......................... 12,034 (4,931) (4,136) 2,172
-------- --------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................ 38,778 304,116 125,070 (3,108)
Futures contracts .................................... 0 0 0 0
Foreign currency transactions ........................ 0 0 0 0
-------- --------- --------- --------
Total net realized gain (loss) ...................... 38,778 304,116 125,070 (3,108)
-------- --------- --------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................ 17,802 661,003 319,655 3,712
Futures contracts .................................... 0 0 0 0
Foreign currency transactions ........................ 0 0 0 0
-------- --------- --------- --------
Total change in unrealized appreciation
(depreciation) .................................... 17,802 661,003 319,655 3,712
-------- --------- --------- --------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions .......... 56,580 965,119 444,725 604
-------- --------- --------- --------
Net increase (decrease) in net assets resulting
from operations ................................... $ 68,614 $ 960,188 $ 440,589 $ 2,776
======== ========= ========= ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 119
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
FEDERATED WRL WRL WRL
GROWTH & DEAN ASSET C.A.S.E. NWQ
INCOME ALLOCATION GROWTH VALUE EQUITY
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................. $ 246 $ 8,809 $ 80 $ 274
Dividends ............................................. 3,782 3,855 456 2,255
Foreign tax withheld .................................. (3) (20) (3) 0
---------- ---------- --------- --------
Total investment income ............................. 4,025 12,644 533 2,529
--------- ---------- -------- --------
EXPENSES:
Investment advisory fees .............................. 615 2,623 670 1,215
Printing and shareholder reports ...................... 48 88 53 62
Custody fees .......................................... 27 61 71 32
Administrative service fees ........................... 28 51 31 36
Legal fees ............................................ 3 6 3 4
Auditing and accounting fees .......................... 7 8 5 5
Directors fees ........................................ 1 2 1 1
Registration fees ..................................... 0 0 0 0
Other fees ............................................ 3 8 3 5
--------- ---------- -------- --------
Total expenses ...................................... 732 2,847 837 1,360
Less: ..................................................
Advisory fee waiver and expense reimbursement ......... 0 0 0 0
Fees paid indirectly .................................. 0 0 0 0
--------- ---------- -------- --------
Net expenses ........................................ 732 2,847 837 1,360
--------- ---------- -------- --------
Net investment income (loss) .......................... 3,293 9,797 (304) 1,169
--------- ---------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................ 1,800 (831) 11,672 (6,640)
Futures contracts .................................... 0 0 0 0
Foreign currency transactions ........................ 0 0 0 0
--------- ---------- -------- --------
Total net realized gain (loss) ...................... 1,800 (831) 11,672 (6,640)
--------- ---------- -------- --------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................ (8,969) (26,992) 11,627 15,217
Futures contracts .................................... 0 0 0 0
Foreign currency transactions ........................ 0 0 0 0
--------- ---------- -------- --------
Total change in unrealized appreciation
(depreciation) .................................... (8,969) (26,992) 11,627 15,217
--------- ---------- -------- --------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions .......... (7,169) (27,823) 23,299 8,577
--------- ---------- -------- --------
Net increase (decrease) in net assets resulting
from operations ................................... $ (3,876) $ (18,026) $ 22,995 $ 9,746
========= ========== ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
120 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
GE/SCOTTISH WRL WRL
EQUITABLE WRL THIRD J.P. MORGAN
INTERNATIONAL GE AVENUE REAL ESTATE
EQUITY U.S. EQUITY VALUE SECURITIES
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ......................................................... $ 108 $ 395 $ 81 $ 8
Dividends ........................................................ 551 1,663 426 204
Foreign tax withheld ............................................. (63) (9) (4) 0
------- --------- -------- -------
Total investment income ........................................ 596 2,049 503 212
------- -------- ------- -------
EXPENSES:
Investment advisory fees ......................................... 329 1,178 146 25
Printing and shareholder reports ................................. 16 59 5 1
Custody fees ..................................................... 244 97 32 50
Administrative service fees ...................................... 9 27 3 0
Legal fees ....................................................... 1 3 0 0
Auditing and accounting fees ..................................... 6 6 7 7
Directors fees ................................................... 0 1 0 0
Registration fees ................................................ 0 0 0 0
Other fees ....................................................... 1 2 0 0
------- -------- ------- -------
Total expenses ................................................. 606 1,373 193 83
Less:
Advisory fee waiver and expense reimbursement .................... 112 0 11 52
Fees paid indirectly ............................................. 0 0 0 0
------- -------- ------- -------
Net expenses ................................................... 494 1,373 182 31
------- -------- ------- -------
Net investment income (loss) ..................................... 102 676 321 181
------- -------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ........................................... 3,429 11,521 (541) (230)
Futures contracts ............................................... (131) 311 0 0
Foreign currency transactions ................................... 43 (1) 0 0
------- --------- ------- -------
Total net realized gain (loss) ................................. 3,341 11,831 (541) (230)
------- -------- ------- -------
Change in unrealized appreciation (depreciation) on:
Investment securities ........................................... 4,810 11,437 2,835 (168)
Futures contracts ............................................... (17) 100 0 0
Foreign currency transactions ................................... (5) 0 0 0
-------- -------- ------- -------
Total change in unrealized appreciation (depreciation) ......... 4,788 11,537 2,835 (168)
------- -------- ------- -------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ..................... 8,129 23,368 2,294 (398)
------- -------- ------- -------
Net increase (decrease) in net assets resulting
from operations .............................................. $ 8,231 $ 24,044 $ 2,615 $ (217)
======= ======== ======= =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 121
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL
GOLDMAN SACHS GOLDMAN SACHS
GROWTH (1) SMALL CAP (1)
<S> <C> <C>
INVESTMENT INCOME:
Interest ......................................................... $ 10 $ 6
Dividends ........................................................ 23 14
Foreign tax withheld ............................................. 0 0
------- -----
Total investment income ........................................ 33 20
------- -----
EXPENSES:
Investment advisory fees ......................................... 26 12
Printing and shareholder reports ................................. 1 0
Custody fees ..................................................... 45 55
Administrative service fees ...................................... 0 0
Legal fees ....................................................... 0 0
Auditing and accounting fees ..................................... 7 7
Directors fees ................................................... 0 0
Registration fees ................................................ 0 0
Other fees ....................................................... 0 0
------- -----
Total expenses ................................................. 79 74
Less:
Advisory fee waiver and expense reimbursement .................... 50 61
Fees paid indirectly ............................................. 0 0
------- -----
Net expenses ................................................... 29 13
------- -----
Net investment income (loss) ..................................... 4 7
------- -----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ........................................... 92 179
Futures contracts ............................................... 0 39
Foreign currency transactions ................................... 0 0
------- -----
Total net realized gain (loss) ................................. 92 218
------- -----
Change in unrealized appreciation (depreciation) on:
Investment securities ........................................... 1,023 233
Futures contracts ............................................... 0 9
Foreign currency transactions ................................... 0 0
------- -----
Total change in unrealized appreciation (depreciation) ......... 1,023 242
------- -----
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ..................... 1,115 460
------- -----
Net increase (decrease) in net assets resulting
from operations .............................................. $ 1,119 $ 467
======= =====
<CAPTION>
WRL WRL
T. ROWE PRICE T. ROWE PRICE
DIVIDEND GROWTH (1) SMALL CAP (1)
<S> <C> <C>
INVESTMENT INCOME:
Interest ......................................................... $ 22 $ 18
Dividends ........................................................ 73 6
Foreign tax withheld ............................................. 0 0
------- -------
Total investment income ........................................ 95 24
------- -------
EXPENSES:
Investment advisory fees ......................................... 31 32
Printing and shareholder reports ................................. 0 1
Custody fees ..................................................... 43 66
Administrative service fees ...................................... 0 1
Legal fees ....................................................... 0 0
Auditing and accounting fees ..................................... 7 7
Directors fees ................................................... 0 0
Registration fees ................................................ 0 0
Other fees ....................................................... 0 0
------- -------
Total expenses ................................................. 81 107
Less:
Advisory fee waiver and expense reimbursement .................... 47 64
Fees paid indirectly ............................................. 0 0
------- -------
Net expenses ................................................... 34 43
------- -------
Net investment income (loss) ..................................... 61 (19)
------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ........................................... (266) 440
Futures contracts ............................................... 0 1
Foreign currency transactions ................................... 0 0
------- -------
Total net realized gain (loss) ................................. (266) 441
------- -------
Change in unrealized appreciation (depreciation) on:
Investment securities ........................................... (178) 2,037
Futures contracts ............................................... 0 0
Foreign currency transactions ................................... 0 0
------- -------
Total change in unrealized appreciation (depreciation) ......... (178) 2,037
------- -------
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions ..................... (444) 2,478
------- -------
Net increase (decrease) in net assets resulting
from operations .............................................. $ (383) $ 2,459
======= =======
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
122 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL
SALOMON PILGRIM BAXTER DREYFUS
ALL CAP (1) MID CAP GROWTH (1) MID CAP (1)
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................................. $ 28 $ 49 $ 4
Dividends ............................................. 31 10 10
Foreign tax withheld .................................. 0 0 0
----- -------- -----
Total investment income ............................. 59 59 14
----- -------- -----
EXPENSES:
Investment advisory fees .............................. 25 76 7
Printing and shareholder reports ...................... 0 1 0
Custody fees .......................................... 49 35 29
Administrative service fees ........................... 0 1 0
Legal fees ............................................ 0 0 0
Auditing and accounting fees .......................... 7 7 7
Directors fees ........................................ 0 0 0
Registration fees ..................................... 0 0 0
Other fees ............................................ 0 0 0
----- -------- -----
Total expenses ...................................... 81 120 43
Less:
Advisory fee waiver and expense reimbursement ......... 53 35 34
Fees paid indirectly .................................. 0 0 0
----- -------- -----
Net expenses ........................................ 28 85 9
----- -------- -----
Net investment income (loss) .......................... 31 (26) 5
----- -------- -----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment securities ................................ 508 2,090 (6)
Futures contracts .................................... 0 0 0
Foreign currency transactions ........................ 0 0 0
----- -------- -----
Total net realized gain (loss) ...................... 508 2,090 (6)
----- -------- ------
Change in unrealized appreciation (depreciation) on:
Investment securities ................................ 142 9,797 164
Futures contracts .................................... 0 0 0
Foreign currency transactions ........................ 0 0 0
----- -------- -----
Total change in unrealized appreciation
(depreciation) .................................... 142 9,797 164
----- -------- -----
Net gain (loss) on investment securities, futures
contracts and foreign currency transactions .......... 650 11,887 158
----- -------- -----
Net increase (decrease) in net assets resulting
from operations ..................................... $ 681 $ 11,861 $ 163
===== ======== =====
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 123
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL
J.P. MORGAN AEGON
MONEY MARKET BOND
----------------------------- -----------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 12,976 $ 8,307 $ 9,220 $ 8,175
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................ 0 0 (411) 1,952
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 0 0 (13,729) 2,580
---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 12,976 8,307 (4,920) 12,707
---------- ---------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (12,976) (8,307) (8,875) (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 .......................... (12,976) (8,307) (8,875) (8,188)
---------- ---------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 991,379 415,785 45,448 81,280
Dividends and distributions reinvested ........ 12,976 8,307 8,875 8,188
Cost of shares redeemed ....................... (744,275) (374,069) (57,387) (52,897)
---------- ---------- --------- ---------
Increase (decrease) in net assets from
capital share transactions .................. 260,080 50,023 (3,064) 36,571
---------- ---------- --------- ---------
Net increase (decrease) in net assets ......... 260,080 50,023 (16,859) 41,090
NET ASSETS:
Beginning of year ............................. 169,731 119,708 170,744 129,654
---------- ---------- --------- ---------
End of year ................................... $ 429,811 $ 169,731 $ 153,885 $ 170,744
========== ========== ========= =========
Undistributed (distributions in excess of)
net investment income ........................ $ 0 $ 0 $ 520 $ 175
========== ========== ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 169,731 119,708 14,727 11,637
---------- ---------- --------- ---------
Shares issued ................................. 991,379 415,785 3,991 6,906
Shares issued - reinvestment of dividends
and distributions ............................ 12,976 8,307 834 706
Shares redeemed ............................... (744,275) (374,069) (5,044) (4,522)
---------- ---------- --------- ---------
Increase (decrease) in shares outstanding ..... 260,080 50,023 (219) 3,090
---------- ---------- --------- ---------
Shares outstanding - end of year .............. 429,811 169,731 14,508 14,727
========== ========== ========= =========
<CAPTION>
WRL
JANUS
GROWTH
-------------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (1,691) $ 5,859
Net realized gain (loss) on investment
securities, futures contracts and
foreign currency transactions ................ 1,031,847 109,620
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 598,439 1,067,908
------------ -----------
Net increase (decrease) in net assets
resulting from operations .................... 1,628,595 1,183,387
------------ -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... 0 (4,582)
In excess of net investment income ............ (60,998) 0
Net realized gains ............................ (659,821) (20,376)
In excess of net realized gains ............... 0 0
------------ -----------
Total distributions .......................... (720,819) (24,958)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 484,176 334,912
Dividends and distributions reinvested ........ 720,819 24,958
Cost of shares redeemed ....................... (1,057,588) (271,695)
------------ -----------
Increase (decrease) in net assets from
capital share transactions .................. 147,407 88,175
------------ -----------
Net increase (decrease) in net assets ......... 1,055,183 1,246,604
NET ASSETS:
Beginning of year ............................. 3,086,057 1,839,453
------------ -----------
End of year ................................... $ 4,141,240 $ 3,086,057
============ ===========
Undistributed (distributions in excess of)
net investment income ........................ $ 5,371 $ 1,083
============ ===========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 51,486 49,925
------------ -----------
Shares issued ................................. 6,984 7,017
Shares issued - reinvestment of dividends
and distributions ............................ 9,823 540
Shares redeemed ............................... (15,197) (5,996)
------------ -----------
Increase (decrease) in shares outstanding ..... 1,610 1,561
------------ -----------
Shares outstanding - end of year .............. 53,096 51,486
============ ===========
</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 YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
JANUS
GLOBAL
-------------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (1,743) $ 2,155
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 152,591 40,987
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 642,354 193,520
----------- -----------
Net increase (decrease) in net assets
resulting from operations .................... 793,202 236,662
----------- -----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... 0 (5,524)
In excess of net investment income ............ 0 0
Net realized gains ............................ (125,550) (34,430)
In excess of net realized gains ............... 0 (2,669)
----------- -----------
Total distributions .......................... (125,550) (42,623)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 319,155 170,974
Dividends and distributions reinvested ........ 125,550 42,623
Cost of shares redeemed ....................... (255,912) (123,837)
----------- -----------
Increase (decrease) in net assets from
capital share transactions .................. 188,793 89,760
----------- -----------
Net increase (decrease) in net assets ......... 856,445 283,799
NET ASSETS:
Beginning of year ............................. 1,069,765 785,966
----------- -----------
End of year ................................... $ 1,926,210 $ 1,069,765
=========== ===========
Undistributed (distributions in excess of)
net investment income ........................ $ 2,107 $ (1,472)
=========== ===========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 45,121 41,272
----------- -----------
Shares issued ................................. 11,486 7,631
Shares issued - reinvestment of dividends
and distributions ............................ 3,912 1,899
Shares redeemed ............................... (9,100) (5,681)
----------- -----------
Increase (decrease) in shares outstanding ..... 6,298 3,849
----------- -----------
Shares outstanding - end of year .............. 51,419 45,121
=========== ===========
<CAPTION>
WRL
LKCM WRL
STRATEGIC VKAM
TOTAL RETURN EMERGING GROWTH
----------------------------- -----------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------------- -------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 12,034 $ 13,622 $ (4,931) $ (2,449)
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 38,778 25,081 304,116 48,782
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 17,802 12,649 661,003 178,298
--------- --------- ----------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 68,614 51,352 960,188 224,631
--------- --------- ----------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (12,630) (13,507) 0 0
In excess of net investment income ............ 0 0 (8,900) 0
Net realized gains ............................ (39,684) (11,332) (259,765) (28,331)
In excess of net realized gains ............... 0 0 0 0
--------- --------- ----------- ---------
Total distributions .......................... (52,314) (24,839) (268,665) (28,331)
--------- --------- ----------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 48,068 61,940 359,236 124,046
Dividends and distributions reinvested ........ 52,314 24,839 268,665 28,331
Cost of shares redeemed ....................... (84,578) (47,557) (256,839) (87,240)
--------- --------- ----------- ---------
Increase (decrease) in net assets from
capital share transactions .................. 15,804 39,222 371,062 65,137
--------- --------- ----------- ---------
Net increase (decrease) in net assets ......... 32,104 65,735 1,062,585 261,437
NET ASSETS:
Beginning of year ............................. 592,312 526,577 853,440 592,003
--------- --------- ----------- ---------
End of year ................................... $ 624,416 $ 592,312 $ 1,916,025 $ 853,440
========= ========= =========== =========
Undistributed (distributions in excess of)
net investment income ........................ $ 1,103 $ 1,633 $ 18,967 $ 0
========= ========= =========== =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 36,106 33,702 31,698 29,066
--------- --------- ----------- ---------
Shares issued ................................. 2,859 3,867 10,833 5,401
Shares issued - reinvestment of dividends
and distributions ............................ 3,137 1,537 6,909 1,183
Shares redeemed ............................... (5,038) (3,000) (7,793) (3,952)
--------- --------- ----------- ---------
Increase (decrease) in shares outstanding ..... 958 2,404 9,949 2,632
--------- --------- ----------- ---------
Shares outstanding - end of year .............. 37,064 36,106 41,647 31,698
========= ========= =========== =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 125
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
ALGER
AGGRESSIVE GROWTH
------------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (4,136) $ (885)
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 125,070 44,175
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 319,655 131,450
----------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 440,589 174,740
----------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (4,899) 0
In excess of net investment income ............ (43,336) (1,181)
Net realized gains ............................ (72,062) (28,097)
In excess of net realized gains ............... 0 0
----------- ---------
Total distributions .......................... (120,297) (29,278)
----------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 201,134 125,033
Dividends and distributions reinvested ........ 120,297 29,278
Cost of shares redeemed ....................... (98,376) (61,775)
----------- ---------
Increase (decrease) in net assets from
capital share transactions .................. 223,055 92,536
----------- ---------
Net increase (decrease) in net assets ......... 543,347 237,998
NET ASSETS:
Beginning of year ............................. 574,164 336,166
----------- ---------
End of year ................................... $ 1,117,511 $ 574,164
=========== =========
Undistributed (distributions in excess of)
net investment income ........................ $ 16,357 $ 9,035
=========== =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 25,588 20,952
----------- ---------
Shares issued ................................. 7,816 6,605
Shares issued - reinvestment of dividends
and distributions ............................ 4,038 1,461
Shares redeemed ............................... (3,858) (3,430)
----------- ---------
Increase (decrease) in shares outstanding ..... 7,996 4,636
----------- ---------
Shares outstanding - end of year .............. 33,584 25,588
=========== =========
<CAPTION>
WRL WRL
AEGON FEDERATED
BALANCED GROWTH & INCOME
----------------------------- ----------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 2,172 $ 2,451 $ 3,293 $ 3,330
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ (3,108) (2,695) 1,800 1,377
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 3,712 6,041 (8,969) (2,082)
--------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 2,776 5,797 (3,876) 2,625
--------- --------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (2,214) (2,097) (4,921) (3,680)
In excess of net investment income ............ 0 0 (150) 0
Net realized gains ............................ 0 0 (648) (645)
In excess of net realized gains ............... 0 (90) 0 0
--------- --------- --------- ---------
Total distributions .......................... (2,214) (2,187) (5,719) (4,325)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 25,902 27,666 17,607 44,343
Dividends and distributions reinvested ........ 2,214 2,187 5,719 4,325
Cost of shares redeemed ....................... (15,205) (11,914) (25,067) (19,844)
--------- --------- --------- ---------
Increase (decrease) in net assets from
capital share transactions .................. 12,911 17,939 (1,741) 28,824
--------- --------- --------- ---------
Net increase (decrease) in net assets ......... 13,473 21,549 (11,336) 27,124
NET ASSETS:
Beginning of year ............................. 95,000 73,451 87,616 60,492
--------- --------- --------- ---------
End of year ................................... $ 108,473 $ 95,000 $ 76,280 $ 87,616
========= ========= ========= =========
Undistributed (distributions in excess of)
net investment income ........................ $ 572 $ 316 $ 1,776 $ 1,628
========= ========= ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 7,574 6,116 7,135 4,817
--------- --------- --------- ---------
Shares issued ................................. 2,017 2,254 1,465 3,566
Shares issued - reinvestment of dividends
and distributions ............................ 174 175 502 354
Shares redeemed ............................... (1,197) (971) (2,108) (1,602)
--------- --------- --------- ---------
Increase (decrease) in shares outstanding ..... 994 1,458 (141) 2,318
--------- --------- --------- ---------
Shares outstanding - end of year .............. 8,568 7,574 6,994 7,135
========= ========= ========= =========
</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 YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
DEAN ASSET
ALLOCATION
-----------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 9,797 $ 9,895
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ (831) 19,941
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. (26,992) (3,713)
---------- ---------
Net increase (decrease) in net assets
resulting from operations .................... (18,026) 26,123
---------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (8,946) (10,269)
In excess of net investment income ............ 0 0
Net realized gains ............................ (975) (24,569)
In excess of net realized gains ............... (587) 0
---------- ---------
Total distributions .......................... (10,508) (34,838)
---------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 14,385 65,710
Dividends and distributions reinvested ........ 10,508 34,838
Cost of shares redeemed ....................... (100,390) (28,840)
---------- ---------
Increase (decrease) in net assets from
capital share transactions .................. (75,497) 71,708
---------- ---------
Net increase (decrease) in net assets ......... (104,031) 62,993
NET ASSETS:
Beginning of year ............................. 365,738 302,745
---------- ---------
End of year ................................... $ 261,707 $ 365,738
========== =========
Undistributed (distributions in excess of)
net investment income ........................ $ 2,168 $ 1,336
========== =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 27,393 22,239
---------- ---------
Shares issued ................................. 1,074 4,661
Shares issued - reinvestment of dividends
and distributions ............................ 843 2,566
Shares redeemed ............................... (7,736) (2,073)
---------- ---------
Increase (decrease) in shares outstanding ..... (5,819) 5,154
---------- ---------
Shares outstanding - end of year ........ ..... 21,574 27,393
========== =========
<CAPTION>
WRL WRL
C.A.S.E. NWQ
GROWTH VALUE EQUITY
----------------------------- ----------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (304) $ 89 $ 1,169 $ 1,599
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 11,672 7,730 (6,640) 7,509
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 11,627 (6,329) 15,217 (21,758)
--------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 22,995 1,490 9,746 (12,650)
--------- --------- --------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (3,650) (1,766) (1,207) (1,703)
In excess of net investment income ............ (5,304) (4,411) 0 (1,500)
Net realized gains ............................ 0 (411) 0 (7,955)
In excess of net realized gains ............... 0 0 (2,104) (3,222)
--------- --------- --------- ---------
Total distributions .......................... (8,954) (6,588) (3,311) (14,380)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 53,421 27,821 53,627 60,182
Dividends and distributions reinvested ........ 8,954 6,588 3,311 14,380
Cost of shares redeemed ....................... (52,209) (20,506) (83,372) (63,810)
--------- --------- --------- ---------
Increase (decrease) in net assets from
capital share transactions .................. 10,166 13,903 (26,434) 10,752
--------- --------- --------- ---------
Net increase (decrease) in net assets ......... 24,207 8,805 (19,999) (16,278)
NET ASSETS:
Beginning of year ............................. 69,401 60,596 157,157 173,435
--------- --------- --------- ---------
End of year ................................... $ 93,608 $ 69,401 $ 137,158 $ 157,157
========= ========= ========= =========
Undistributed (distributions in excess of)
net investment income ........................ $ 6,098 $ 3,954 $ 569 $ 607
========= ========= ========= =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 5,342 4,325 12,972 12,473
--------- --------- --------- ---------
Shares issued ................................. 3,515 2,031 3,973 4,316
Shares issued - reinvestment of dividends
and distributions ............................ 578 505 264 1,168
Shares redeemed ............................... (3,474) (1,519) (6,467) (4,985)
--------- --------- --------- ---------
Increase (decrease) in shares outstanding ..... 619 1,017 (2,230) 499
--------- --------- --------- ---------
Shares outstanding - end of year ........ ..... 5,961 5,342 10,742 12,972
========= ========= ========= =========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 127
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL
GE/SCOTTISH EQUITABLE
INTERNATIONAL EQUITY
-----------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 102 $ 81
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 3,341 (548)
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 4,788 2,913
----------- ---------
Net increase (decrease) in net assets
resulting from operations .................... 8,231 2,446
----------- ---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (120) (23)
In excess of net investment income ............ 0 0
Net realized gains ............................ (1,600) 0
In excess of net realized gains ............... 0 0
----------- ---------
Total distributions .......................... (1,720) (23)
----------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 199,915 26,504
Dividends and distributions reinvested ........ 1,720 23
Cost of shares redeemed ....................... (206,716) (16,596)
----------- ---------
Increase (decrease) in net assets from
capital share transactions .................. (5,081) 9,931
----------- ---------
Net increase (decrease) in net assets ......... 1,430 12,354
NET ASSETS:
Beginning of year ............................. 32,149 19,795
----------- ---------
End of year ................................... $ 33,579 $ 32,149
=========== =========
Undistributed (distributions in excess of)
net investment income ........................ $ 133 $ 42
=========== =========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 2,664 1,850
----------- ---------
Shares issued ................................. 16,282 2,225
Shares issued - reinvestment of dividends
and distributions ............................ 131 2
Shares redeemed ............................... (16,726) (1,413)
----------- ---------
Increase (decrease) in shares outstanding ..... (313) 814
----------- ---------
Shares outstanding - end of year .............. 2,351 2,664
=========== =========
<CAPTION>
WRL WRL
GE THIRD AVENUE
U.S. EQUITY VALUE
----------------------------- ----------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998(1)
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 676 $ 472 $ 321 $ 86
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 11,831 4,584 (541) 292
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 11,537 11,132 2,835 (1,456)
--------- --------- -------- --------
Net increase (decrease) in net assets
resulting from operations .................... 24,044 16,188 2,615 (1,078)
--------- --------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (1,951) (1,004) (528) (50)
In excess of net investment income ............ (3,433) (2,280) 0 0
Net realized gains ............................ (7,646) (758) 0 0
In excess of net realized gains ............... 0 0 0 0
--------- --------- -------- --------
Total distributions .......................... (13,030) (4,042) (528) (50)
--------- --------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 94,251 82,493 7,369 24,952
Dividends and distributions reinvested ........ 13,030 4,042 528 50
Cost of shares redeemed ....................... (49,831) (30,829) (8,973) (5,668)
--------- --------- -------- --------
Increase (decrease) in net assets from
capital share transactions .................. 57,450 55,706 (1,076) 19,334
--------- --------- -------- --------
Net increase (decrease) in net assets ......... 68,464 67,852 1,011 18,206
NET ASSETS:
Beginning of year ............................. 110,803 42,951 18,206 0
--------- --------- -------- --------
End of year ................................... $ 179,267 $ 110,803 $ 19,217 $ 18,206
========= ========= ======== ========
Undistributed (distributions in excess of)
net investment income ........................ $ 952 $ 1,275 $ 121 $ 328
========= ========= ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 7,684 3,511 1,960 0
--------- --------- -------- --------
Shares issued ................................. 6,084 6,159 790 2,566
Shares issued - reinvestment of dividends
and distributions ............................ 833 286 54 6
Shares redeemed ............................... (3,249) (2,272) (966) (612)
--------- --------- -------- --------
Increase (decrease) in shares outstanding ..... 3,668 4,173 (122) 1,960
--------- --------- -------- --------
Shares outstanding - end of year .............. 11,352 7,684 1,838 1,960
========= ========= ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
128 WRL SERIES FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL WRL
J.P. MORGAN GOLDMAN SACHS GOLDMAN SACHS T. ROWE PRICE
REAL ESTATE SECURITIES GROWTH SMALL CAP DIVIDEND GROWTH
----------------------------- --------------- --------------- ----------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998(1) 1999(1) 1999(1) 1999(1)
-------------- -------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 181 $ 72 $ 4 $ 7 $ 61
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ (230) (272) 92 218 (266)
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. (168) (77) 1,023 242 (178)
-------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations .................... (217) (277) 1,119 467 (383)
-------- -------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... (62) 0 0 (7) 0
In excess of net investment income ............ 0 0 0 (93) 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 (100) 0
-------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 7,173 4,110 8,740 6,972 10,770
Dividends and distributions reinvested ........ 62 0 0 100 0
Cost of shares redeemed ....................... (6,171) (1,419) (1,655) (4,656) (1,657)
-------- -------- -------- -------- --------
Increase (decrease) in net assets from
capital share transactions ................... 1,064 2,691 7,085 2,416 9,113
-------- -------- -------- -------- --------
Net increase (decrease) in net assets ......... 785 2,414 8,204 2,783 8,730
NET ASSETS:
Beginning of year ............................. 2,414 0 0 0 0
-------- -------- -------- -------- --------
End of year ................................... $ 3,199 $ 2,414 $ 8,204 $ 2,783 $ 8,730
======== ======== ======== ======== ========
Undistributed (distributions in excess of)
net investment income ........................ $ 152 $ 72 $ 124 $ 119 $ 60
======== ======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 284 0 0 0 0
-------- -------- -------- -------- --------
Shares issued ................................. 829 448 860 678 1,120
Shares issued - reinvestment of dividends
and distributions ............................ 7 0 0 9 0
Shares redeemed ............................... (723) (164) (162) (440) (177)
-------- -------- -------- -------- --------
Increase (decrease) in shares outstanding ..... 113 284 698 247 943
-------- -------- -------- -------- --------
Shares outstanding - end of year .............. 397 284 698 247 943
======== ======== ======== ======== ========
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 129
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED
ALL AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
WRL WRL WRL WRL
T. ROWE PRICE SALOMON PILGRIM BAXTER DREYFUS
SMALL CAP ALL CAP MID CAP GROWTH MID CAP
--------------- -------------- ---------------- -------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999(1) 1999(1) 1999(1) 1999(1)
--------------- -------------- ---------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (19) $ 31 $ (26) $ 5
Net realized gain (loss) on investment
securites, futures contracts and
foreign currency transactions ................ 441 508 2,090 (6)
Change in unrealized appreciation
(depreciation) on investment securities,
futures contracts and foreign currency
transactions ................................. 2,037 142 9,797 164
-------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations .................... 2,459 681 11,861 163
-------- -------- -------- --------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income ......................... 0 (31) 0 0
In excess of net investment income ............ (300) (169) (100) 0
Net realized gains ............................ 0 0 0 0
In excess of net realized gains ............... 0 0 0 0
-------- -------- -------- --------
Total distributions .......................... (300) (200) (100) 0
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 16,324 12,041 34,054 4,485
Dividends and distributions reinvested ........ 300 200 100 0
Cost of shares redeemed ....................... (8,959) (6,036) (8,714) (1,264)
-------- -------- -------- --------
Increase (decrease) in net assets from
capital share transactions .................. 7,665 6,205 25,440 3,221
-------- -------- -------- --------
Net increase (decrease) in net assets ......... 9,824 6,686 37,201 3,384
NET ASSETS:
Beginning of year ............................. 0 0 0 0
-------- -------- -------- --------
End of year ................................... $ 9,824 $ 6,686 $ 37,201 $ 3,384
======== ======== ======== ========
Undistributed (distributions in excess of)
net investment income ........................ $ 259 $ 454 $ 2,014 $ 34
======== ======== ======== ========
SHARE ACTIVITY:
Shares outstanding - beginning of year ........ 0 0 0 0
-------- -------- -------- --------
Shares issued ................................. 1,510 1,140 2,765 440
Shares issued - reinvestment of dividends
and distributions ............................ 23 18 6 0
Shares redeemed ............................... (801) (560) (675) (124)
-------- -------- -------- --------
Increase (decrease) in shares outstanding ..... 732 598 2,096 316
-------- -------- -------- --------
Shares outstanding - end of year .............. 732 598 2,096 316
======== ======== ======== ========
</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 YEAR ENDED
<TABLE>
<CAPTION>
WRL J.P. MORGAN MONEY MARKET
=============================
DECEMBER 31,
-----------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of year ................................... $ 1.00 $ 1.00
Income from operations:
Net investment income (loss) ....................................... 0.05 0.05
Net realized and unrealized gain (loss) on investments ............. 0.00 0.00
-------- --------
Net income (loss) from operations ................................. 0.05 0.05
-------- --------
Distributions:
Dividends from net investment income ............................... (0.05) (0.05)
Dividends in excess of net investment income ....................... 0.00 0.00
Distributions from net realized gains on investments ............... 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00
-------- --------
Total distributions ............................................... (0.05) (0.05)
-------- --------
Net asset value, end of year ......................................... $ 1.00 $ 1.00
======== ========
Total return ......................................................... 4.63 % 5.26 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 429,811 $ 169,731
Ratio of expenses to average net assets ............................ 0.44 % 0.46 %
Ratio of net investment income (loss) to average net assets ........ 4.81 % 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 year ................................... $ 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 year ......................................... $ 1.00 $ 1.00 $ 1.00
======== ======== =======
Total return ......................................................... 5.24 % 5.03 % 5.40 %
Ratios and supplemental data:
Net assets at end of year (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
</TABLE>
<TABLE>
<CAPTION>
WRL AEGON BOND
=============================
DECEMBER 31,
-----------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 11.59 $ 11.14
Income from operations:
Net investment income (loss) ...................................... 0.64 0.64
Net realized and unrealized gain (loss) on investments ............ (0.97) 0.40
-------- --------
Net income (loss) from operations ................................ (0.33) 1.04
-------- --------
Distributions:
Dividends from net investment income .............................. (0.65) (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 .............................................. (0.65) (0.59)
-------- --------
Net asset value, end of year ........................................ $ 10.61 $ 11.59
======== ========
Total return ........................................................ (2.94)% 9.32 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 153,885 $170,744
Ratio of expenses to average net assets ........................... 0.53 % 0.54 %
Ratio of net investment income (loss) to average net assets ....... 5.67 % 5.54 %
Portfolio turnover rate ........................................... 26.40 % 51.60 %
<CAPTION>
WRL AEGON BOND
==========================================
DECEMBER 31,
------------------------------------------
1997 1996 1995
-------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 10.71 $ 11.35 $ 9.80
Income from operations:
Net investment income (loss) ...................................... 0.65 0.64 0.69
Net realized and unrealized gain (loss) on investments ............ 0.32 (0.64) 1.55
-------- -------- --------
Net income (loss) from operations ................................ 0.97 0.00 2.24
-------- -------- --------
Distributions:
Dividends from net investment income .............................. (0.54) (0.64) (0.69)
Dividends in excess of net investment income ...................... 0.00 0.00 0.00
Distributions from net realized gains on investments .............. 0.00 0.00 0.00
Distributions in excess of net realized gains on investments ...... 0.00 0.00 0.00
-------- -------- --------
Total distributions .............................................. (0.54) (0.64) (0.69)
-------- -------- --------
Net asset value, end of year ........................................ $ 11.14 $ 10.71 $ 11.35
======== ======== ========
Total return ........................................................ 9.16 % 0.14 % 22.99 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 129,654 $ 95,759 $ 96,972
Ratio of expenses to average net assets ........................... 0.64 % 0.64 % 0.61 %
Ratio of net investment income (loss) to average net assets ....... 5.90 % 5.96 % 6.45 %
Portfolio turnover rate ........................................... 213.03 % 187.72 % 120.54 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 131
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL JANUS GROWTH
=================================
DECEMBER 31,
---------------------------------
1999 1998
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 59.94 $ 36.84
Income from operations:
Net investment income (loss) ...................................... (0.04) 0.12
Net realized and unrealized gain (loss) on investments ............ 34.02 23.49
---------- ----------
Net income (loss) from operations ................................ 33.98 23.61
---------- ----------
Distributions:
Dividends from net investment income .............................. 0.00 (0.09)
Dividends in excess of net investment income ...................... (1.17) 0.00
Distributions from net realized gains on investments .............. (14.75) (0.42)
Distributions in excess of net realized gains on investments ...... 0.00 0.00
---------- ----------
Total distributions .............................................. (15.92) (0.51)
---------- ----------
Net asset value, end of year ........................................ $ 78.00 $ 59.94
========== ==========
Total return ........................................................ 59.67 % 64.47 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $4,141,240 $3,086,057
Ratio of expenses to average net assets ........................... 0.82 % 0.83 %
Ratio of net investment income (loss) to average net assets ....... (0.05)% 0.25 %
Portfolio turnover rate ........................................... 70.95 % 35.29 %
<CAPTION>
WRL JANUS GROWTH
==================================================
DECEMBER 31,
--------------------------------------------------
1997 1996 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 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 year ........................................ $ 36.84 $ 35.00 $ 31.66
========== ========== ==========
Total return ........................................................ 17.54 % 17.96 % 47.12 %
Ratios and supplemental data:
Net assets at end of year (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 %
</TABLE>
<TABLE>
<CAPTION>
WRL JANUS GLOBAL
=================================
DECEMBER 31,
---------------------------------
1999 1998
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 23.71 $ 19.04
Income from operations:
Net investment income (loss) ...................................... (0.04) 0.05
Net realized and unrealized gain (loss) on investments ............ 16.42 5.61
---------- ----------
Net income (loss) from operations ................................ 16.38 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 .............. (2.63) (0.80)
Distributions in excess of net realized gains on investments ...... 0.00 (0.06)
---------- ----------
Total distributions .............................................. (2.63) (0.99)
---------- ----------
Net asset value, end of year ........................................ $ 37.46 $ 23.71
========== ==========
Total return ........................................................ 71.10 % 30.01 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $1,926,210 $ 1,069,765
Ratio of expenses to average net assets ........................... 0.92 % 0.95 %
Ratio of net investment income (loss) to average net assets ....... (0.14)% 0.23 %
Portfolio turnover rate ........................................... 68.10 % 87.36 %
<CAPTION>
WRL JANUS GLOBAL
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 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 year ........................................ $ 19.04 $ 18.12 $ 15.52
======== ======== ========
Total return ........................................................ 18.75 % 27.74 % 23.06 %
Ratios and supplemental data:
Net assets at end of year (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 %
</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 YEAR ENDED
<TABLE>
<CAPTION>
WRL LKCM STRATEGIC TOTAL
RETURN
=============================
DECEMBER 31,
-----------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 16.40 $ 15.62
Income from operations:
Net investment income (loss) ...................................... 0.34 0.39
Net realized and unrealized gain (loss) on investments ............ 1.59 1.09
-------- --------
Net income (loss) from operations ................................ 1.93 1.48
-------- --------
Distributions:
Dividends from net investment income .............................. (0.35) (0.38)
Dividends in excess of net investment income ...................... 0.00 0.00
Distributions from net realized gains on investments .............. (1.13) (0.32)
Distributions in excess of net realized gains on investments ...... 0.00 0.00
-------- --------
Total distributions .............................................. (1.48) (0.70)
-------- --------
Net asset value, end of year ........................................ $ 16.85 $ 16.40
======== ========
Total return ........................................................ 12.07 % 9.64 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 624,416 $ 592,312
Ratio of expenses to average net assets ........................... 0.86 % 0.86 %
Ratio of net investment income (loss) to average net assets ....... 2.02 % 2.43 %
Portfolio turnover rate ........................................... 45.42 % 49.20 %
<CAPTION>
WRL LKCM STRATEGIC TOTAL RETURN
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 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 year ........................................ $ 15.62 $ 13.97 $ 12.86
======== ======== ========
Total return ........................................................ 21.85 % 15.00 % 24.66 %
Ratios and supplemental data:
Net assets at end of year (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 %
</TABLE>
<TABLE>
<CAPTION>
WRL VKAM EMERGING GROWTH
===============================
DECEMBER 31,
-------------------------------
1999 1998
---------------- --------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 26.92 $ 20.37
Income from operations:
Net investment income (loss) ...................................... (0.15) (0.08)
Net realized and unrealized gain (loss) on investments ............ 26.83 7.56
---------- --------
Net income (loss) from operations ................................ 26.68 7.48
---------- --------
Distributions: .....................................................
Dividends from net investment income .............................. 0.00 0.00
Dividends in excess of net investment income ...................... (0.21) 0.00
Distributions from net realized gains on investments .............. (7.38) (0.93)
Distributions in excess of net realized gains on investments ...... 0.00 0.00
---------- --------
Total distributions .............................................. (7.59) (0.93)
---------- --------
Net asset value, end of year ........................................ $ 46.01 $ 26.92
========== ========
Total return ........................................................ 105.16 % 37.33 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $1,916,025 $853,440
Ratio of expenses to average net assets ........................... 0.87 % 0.89 %
Ratio of net investment income (loss) to average net assets ....... (0.44)% (0.36)%
Portfolio turnover rate ........................................... 117.72 % 99.50 %
<CAPTION>
WRL VKAM EMERGING GROWTH
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 18.46 $ 16.25 $ 11.55
Income from operations:
Net investment income (loss) ...................................... (0.05) (0.04) 0.01
Net realized and unrealized gain (loss) on investments ............ 4.03 3.10 5.42
-------- -------- --------
Net income (loss) from operations ................................ 3.98 3.06 5.43
-------- -------- --------
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 .............. (2.07) (0.85) (0.73)
Distributions in excess of net realized gains on investments ...... 0.00 0.00 0.00
-------- -------- --------
Total distributions .............................................. (2.07) (0.85) (0.73)
-------- -------- --------
Net asset value, end of year ........................................ $ 20.37 $ 18.46 $ 16.25
======== ======== ========
Total return ........................................................ 21.45 % 18.88 % 46.79 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $592,003 $ 431,454 $288,519
Ratio of expenses to average net assets ........................... 0.93 % 0.94 % 0.91 %
Ratio of net investment income (loss) to average net assets ....... (0.27)% (0.24)% 0.03 %
Portfolio turnover rate ........................................... 99.78 % 80.02 % 124.13 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 133
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL ALGER AGGRESSIVE GROWTH
===============================
DECEMBER 31,
-------------------------------
1999 1998
---------------- --------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 22.44 $ 16.04
Income from operations:
Net investment income (loss) ...................................... (0.15) (0.04)
Net realized and unrealized gain (loss) on investments ............ 14.95 7.68
---------- --------
Net income (loss) from operations ................................ 14.80 7.64
---------- --------
Distributions:
Dividends from net investment income .............................. (0.16) 0.00
Dividends in excess of net investment income ...................... (1.38) (0.05)
Distributions from net realized gains on investments .............. (2.42) (1.19)
Distributions in excess of net realized gains on investments ...... 0.00 0.00
---------- --------
Total distributions .............................................. (3.96) (1.24)
---------- --------
Net asset value, end of year ........................................ $ 33.28 $ 22.44
========== ========
Total return ........................................................ 69.02 % 48.69 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $1,117,511 $574,164
Ratio of expenses to average net assets ........................... 0.89 % 0.91 %
Ratio of net investment income (loss) to average net assets ....... (0.56)% (0.21)%
Portfolio turnover rate ........................................... 101.71 % 117.44 %
<CAPTION>
WRL ALGER AGGRESSIVE GROWTH
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 14.18 $ 13.25 $ 9.86
Income from operations:
Net investment income (loss) ...................................... (0.01) (0.01) (0.06)
Net realized and unrealized gain (loss) on investments ............ 3.44 1.38 3.96
-------- -------- --------
Net income (loss) from operations ................................ 3.43 1.37 3.90
-------- -------- --------
Distributions:
Dividends from net investment income .............................. 0.00 0.00 0.00
Dividends in excess of net investment income ...................... (0.42) (0.19) 0.00
Distributions from net realized gains on investments .............. (1.15) (0.25) (0.51)
Distributions in excess of net realized gains on investments ...... 0.00 0.00 0.00
-------- -------- --------
Total distributions .............................................. (1.57) (0.44) (0.51)
-------- -------- --------
Net asset value, end of year ........................................ $ 16.04 $ 14.18 $ 13.25
======== ======== ========
Total return ........................................................ 24.25 % 10.45 % 38.02 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 336,166 $ 220,552 $ 158,534
Ratio of expenses to average net assets ........................... 0.96 % 0.98 % 1.07 %
Ratio of net investment income (loss) to average net assets ....... (0.06)% (0.10)% (0.48)%
Portfolio turnover rate ........................................... 136.18 % 101.28 % 108.04 %
</TABLE>
<TABLE>
<CAPTION>
WRL AEGON BALANCED
============================
DECEMBER 31,
----------------------------
1999 1998
-------------- -------------
<S> <C> <C>
Net asset value, beginning of year ................................... $ 12.54 $ 12.01
Income from operations:
Net investment income (loss) ....................................... 0.26 0.35
Net realized and unrealized gain (loss) on investments ............. 0.12 0.47
-------- -------
Net income (loss) from operations ................................. 0.38 0.82
-------- -------
Distributions:
Dividends from net investment income ............................... (0.26) (0.28)
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 (0.01)
-------- -------
Total distributions ............................................... (0.26) (0.29)
-------- -------
Net asset value, end of year ......................................... $ 12.66 $ 12.54
======== =======
Total return ......................................................... 3.03 % 6.93 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 108,473 $ 95,000
Ratio of expenses to average net assets ............................ 0.89 % 0.91 %
Ratio of net investment income (loss) to average net assets ........ 2.06 % 2.89 %
Portfolio turnover rate ............................................ 74.88 % 83.94 %
<CAPTION>
WRL AEGON BALANCED
=========================================
DECEMBER 31,
-----------------------------------------
1997 1996 1995
------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of year ................................... $ 11.39 $ 10.63 $ 9.24
Income from operations:
Net investment income (loss) ....................................... 0.38 0.34 0.44
Net realized and unrealized gain (loss) on investments ............. 1.56 0.80 1.38
------- ------- -------
Net income (loss) from operations ................................. 1.94 1.14 1.82
------- ------- -------
Distributions:
Dividends from net investment income ............................... (0.36) (0.28) (0.43)
Dividends in excess of net investment income ....................... (0.30) 0.00 0.00
Distributions from net realized gains on investments ............... (0.66) (0.10) 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
------- ------- -------
Total distributions ............................................... (1.32) (0.38) (0.43)
------- ------- -------
Net asset value, end of year ......................................... $ 12.01 $ 11.39 $ 10.63
======= ======= =======
Total return ......................................................... 17.10 % 10.72 % 19.80 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 73,451 $ 49,331 $ 31,114
Ratio of expenses to average net assets ............................ 0.94 % 0.97 % 0.97 %
Ratio of net investment income (loss) to average net assets ........ 3.13 % 3.14 % 4.38 %
Portfolio turnover rate ............................................ 77.06 % 76.90 % 98.55 %
</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 YEAR ENDED
<TABLE>
<CAPTION>
WRL FEDERATED GROWTH &
INCOME
===========================
DECEMBER 31,
---------------------------
1999 1998
------------- -------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 12.28 $ 12.56
Income from operations:
Net investment income (loss) ...................................... 0.48 0.53
Net realized and unrealized gain (loss) on investments ............ (1.00) (0.16)
-------- -------
Net income (loss) from operations ................................ (0.52) 0.37
-------- -------
Distributions:
Dividends from net investment income .............................. (0.73) (0.55)
Dividends in excess of net investment income ...................... (0.02) 0.00
Distributions from net realized gains on investments .............. (0.10) (0.10)
Distributions in excess of net realized gains on investments ...... 0.00 0.00
-------- -------
Total distributions .............................................. (0.85) (0.65)
-------- -------
Net asset value, end of year ........................................ $ 10.91 $ 12.28
======== =======
Total return ........................................................ (4.45)% 3.05 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 76,280 $87,616
Ratio of expenses to average net assets ........................... 0.89 % 0.90 %
Ratio of net investment income (loss) to average net assets ....... 4.01 % 4.35 %
Portfolio turnover rate ........................................... 117.14 % 97.17 %
<CAPTION>
WRL FEDERATED GROWTH & INCOME
=========================================
DECEMBER 31,
-----------------------------------------
1997 1996 1995
------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 11.76 $ 11.12 $ 9.30
Income from operations:
Net investment income (loss) ...................................... 0.49 0.42 0.46
Net realized and unrealized gain (loss) on investments ............ 2.35 0.87 1.93
-------- ------- -------
Net income (loss) from operations ................................ 2.84 1.29 2.39
-------- ------- -------
Distributions:
Dividends from net investment income .............................. (0.43) (0.33) (0.46)
Dividends in excess of net investment income ...................... (0.59) 0.00 0.00
Distributions from net realized gains on investments .............. (1.02) (0.32) (0.11)
Distributions in excess of net realized gains on investments ...... 0.00 0.00 0.00
-------- ------- -------
Total distributions .............................................. (2.04) (0.65) (0.57)
-------- ------- -------
Net asset value, end of year ........................................ $ 12.56 $ 11.76 $ 11.12
======== ======= =======
Total return ........................................................ 24.65 % 11.64 % 25.25 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 60,492 $ 38,115 $ 24,607
Ratio of expenses to average net assets ........................... 0.96 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ....... 3.84 % 3.73 % 4.56 %
Portfolio turnover rate ........................................... 155.77 % 68.53 % 78.34 %
</TABLE>
<TABLE>
<CAPTION>
WRL DEAN ASSET ALLOCATION
=============================
DECEMBER 31,
-----------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 13.35 $ 13.61
Income from operations:
Net investment income (loss) ...................................... 0.39 0.41
Net realized and unrealized gain (loss) on investments ............ (1.14) 0.71
-------- --------
Net income (loss) from operations ................................ (0.75) 1.12
-------- --------
Distributions:
Dividends from net investment income .............................. (0.41) (0.39)
Dividends in excess of net investment income ...................... 0.00 0.00
Distributions from net realized gains on investments .............. (0.04) (0.99)
Distributions in excess of net realized gains on investments ...... (0.02) 0.00
-------- --------
Total distributions .............................................. (0.47) (1.38)
-------- --------
Net asset value, end of year ........................................ $ 12.13 $ 13.35
======== ========
Total return ........................................................ (5.64)% 8.33 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $261,707 $365,738
Ratio of expenses to average net assets ........................... 0.87 % 0.86 %
Ratio of net investment income (loss) to average net assets ....... 2.99 % 2.93 %
Portfolio turnover rate ........................................... 88.78 % 76.62 %
<CAPTION>
WRL DEAN ASSET ALLOCATION
============================================
DECEMBER 31,
--------------------------------------------
1997 1996 1995(1)
-------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 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 year ........................................ $ 13.61 $ 12.61 $ 11.49
======== ======== ========
Total return ........................................................ 16.59 % 14.42 % 20.09 %
Ratios and supplemental data:
Net assets at end of year (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.
1999 ANNUAL REPORT 135
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL C.A.S.E. GROWTH
===========================
DECEMBER 31,
---------------------------
1999 1998
------------- -------------
<S> <C> <C>
Net asset value, beginning of year .................................. $ 12.99 $ 14.01
Income from operations:
Net investment income (loss) ...................................... (0.05) 0.02
Net realized and unrealized gain (loss) on investments ............ 4.38 0.31
-------- --------
Net income (loss) from operations ................................ 4.33 0.33
-------- --------
Distributions:
Dividends from net investment income .............................. (0.66) (0.36)
Dividends in excess of net investment income ...................... (0.96) (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 .............................................. (1.62) (1.35)
-------- --------
Net asset value, end of year ........................................ $ 15.70 $ 12.99
======== ========
Total return ........................................................ 33.84 % 2.47 %
Ratios and supplemental data:
Net assets at end of year (in thousands) .......................... $ 93,608 $ 69,401
Ratio of expenses to average net assets ........................... 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ....... (0.36)% 0.14 %
Portfolio turnover rate ........................................... 143.52 % 205.28 %
<CAPTION>
WRL C.A.S.E. GROWTH
========================================
DECEMBER 31,
----------------------------------------
1997 1996 1995(1)
------------- ------------- ------------
<S> <C> <C> <C>
Net asset value, beginning of year .................................. $ 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 year ........................................ $ 14.01 $ 13.42 $ 11.66
======== ======== =========
Total return ........................................................ 15.03 % 17.50 % 20.65 %
Ratios and supplemental data:
Net assets at end of year (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
=========================================================
DECEMBER 31,
---------------------------------------------------------
1999 1998 1997 1996(1)
-------------- -------------- -------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year ................................... $ 12.12 $ 13.90 $ 11.27 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.10 0.12 0.12 0.10
Net realized and unrealized gain (loss) on investments ............. 0.85 (0.78) 2.69 1.23
-------- -------- -------- -------
Net income (loss) from operations ................................. 0.95 (0.66) 2.81 1.33
-------- -------- -------- -------
Distributions:
Dividends from net investment income ............................... (0.10) (0.13) (0.09) (0.04)
Dividends in excess of net investment income ....................... 0.00 (0.12) (0.07) 0.00
Distributions from net realized gains on investments ............... 0.00 (0.62) (0.02) (0.02)
Distributions in excess of net realized gains on investments ....... (0.20) (0.25) 0.00 0.00
-------- -------- -------- -------
Total distributions ............................................... (0.30) (1.12) (0.18) (0.06)
-------- -------- -------- -------
Net asset value, end of year ......................................... $ 12.77 $ 12.12 $ 13.90 $ 11.27
======== ======== ======== =======
Total return ......................................................... 7.95 % (4.78)% 25.04 % 13.19 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $137,158 $157,157 $173,435 $ 49,394
Ratio of expenses to average net assets ............................ 0.90 % 0.89 % 0.89 % 1.00 %
Ratio of net investment income (loss) to average net assets ........ 0.77 % 0.89 % 0.90 % 0.89 %
Portfolio turnover rate ............................................ 34.19 % 43.60 % 17.28 % 7.93 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
136 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL GE/SCOTTISH
EQUITABLE INTERNATIONAL EQUITY
============================================
DECEMBER 31,
--------------------------------------------
1999 1998 1997(1)
------------- ------------- ------------
<S> <C> <C> <C>
Net asset value, beginning of year ................................... $ 12.07 $ 10.70 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.04 0.03 0.02
Net realized and unrealized gain (loss) on investments ............. 2.90 1.35 0.73
------- ------- -------
Net income (loss) from operations ................................. 2.94 1.38 0.75
------- ------- -------
Distributions:
Dividends from net investment income ............................... (0.05) (0.01) (0.01)
Dividends in excess of net investment income ....................... 0.00 0.00 (0.04)
Distributions from net realized gains on investments ............... (0.68) 0.00 0.00
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
------- ------- -------
Total distributions ............................................... (0.73) (0.01) (0.05)
------- ------- -------
Net asset value, end of year ......................................... $ 14.28 $ 12.07 $ 10.70
======= ======= =======
Total return ......................................................... 24.95 % 12.85 % 7.50 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 33,579 $ 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 ........ 0.31 % 0.30 % 0.18 %
Portfolio turnover rate ............................................ 99.77 % 71.74 % 54.33 %
</TABLE>
<TABLE>
<CAPTION>
WRL GE U.S. EQUITY
==============================================
DECEMBER 31,
----------------------------------------------
1999 1998 1997(1)
-------------- -------------- ------------
<S> <C> <C> <C>
Net asset value, beginning of year ................................... $ 14.42 $ 12.23 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.07 0.09 0.09
Net realized and unrealized gain (loss) on investments ............. 2.55 2.69 2.60
-------- -------- -------
Net income (loss) from operations ................................. 2.62 2.78 2.69
-------- -------- -------
Distributions:
Dividends from net investment income ............................... (0.18) (0.15) (0.04)
Dividends in excess of net investment income ....................... (0.33) (0.33) (0.38)
Distributions from net realized gains on investments ............... (0.74) (0.11) (0.04)
Distributions in excess of net realized gains on investments ....... 0.00 0.00 0.00
-------- -------- -------
Total distributions ............................................... (1.25) (0.59) (0.46)
-------- -------- -------
Net asset value, end of year ......................................... $ 15.79 $ 14.42 $ 12.23
======== ======== =======
Total return ......................................................... 18.41 % 22.87 % 27.01 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 179,267 $ 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 ............................................ 44.01 % 63.08 % 92.35 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 137
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL THIRD AVENUE WRL J.P. MORGAN
VALUE REAL ESTATE SECURITIES
=========================== =========================
DECEMBER 31, DECEMBER 31,
--------------------------- -------------------------
1999 1998(1) 1999 1998(1)
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year ................................... $ 9.29 $ 10.00 $ 8.51 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.16 0.06 0.49 0.36
Net realized and unrealized gain (loss) on investments ............. 1.28 (0.74) (0.79) (1.85)
------- ------- -------- --------
Net income (loss) from operations ................................. 1.44 (0.68) (0.30) (1.49)
------- ------- -------- --------
Distributions:
Dividends from net investment income ............................... (0.28) (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 ............................................... (0.28) (0.03) (0.15) 0.00
------- ------- -------- --------
Net asset value, end of year ......................................... $ 10.45 $ 9.29 $ 8.06 $ 8.51
======= ======= ======== ========
Total return ......................................................... 15.72 % (6.84)% (3.77)% (14.93)%
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $19,217 $18,206 $ 3,199 $ 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 ........ 1.76 % 0.63 % 5.91 % 6.03 %
Portfolio turnover rate ............................................ 9.56 % 4.35 % 189.80 % 100.80 %
</TABLE>
<TABLE>
<CAPTION>
WRL WRL
GOLDMAN SACHS GOLDMAN SACHS
GROWTH SMALL CAP
=============== ===============
DECEMBER 31, DECEMBER 31,
--------------- ---------------
1999(1) 1999(1)
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of year ................................. $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.01 0.03
Net realized and unrealized gain (loss) on investments ........... 1.74 1.74
-------- ---------
Net income (loss) from operations ............................... 1.75 1.77
-------- ---------
Distributions:
Dividends from net investment income ............................. 0.00 (0.04)
Dividends in excess of net investment income ..................... 0.00 (0.48)
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 (0.52)
-------- ---------
Net asset value, end of year ....................................... $ 11.75 $ 11.25
======== =========
Total return ....................................................... 17.50 % 17.82 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ......................... $ 8,204 $ 2,783
Ratio of expenses to average net assets .......................... 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 0.12 % 0.50 %
Portfolio turnover rate .......................................... 40.46 % 340.66 %
<CAPTION>
WRL WRL
T. ROWE PRICE T. ROWE PRICE
DIVIDEND GROWTH SMALL CAP
================= ==============
DECEMBER 31, DECEMBER 31,
----------------- --------------
1999(1) 1999(1)
----------------- --------------
<S> <C> <C>
Net asset value, beginning of year ................................. $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ..................................... 0.11 (0.03)
Net realized and unrealized gain (loss) on investments ........... (0.85) 3.87
------- ---------
Net income (loss) from operations ............................... (0.74) 3.84
------- ---------
Distributions:
Dividends from net investment income ............................. 0.00 0.00
Dividends in excess of net investment income ..................... 0.00 (0.43)
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 (0.43)
------- ---------
Net asset value, end of year ....................................... $ 9.26 $ 13.41
======= =========
Total return ....................................................... (7.40)% 38.49 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ......................... $ 8,730 $ 9,824
Ratio of expenses to average net assets .......................... 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ...... 1.75 % (0.44)%
Portfolio turnover rate .......................................... 43.76 % 159.02 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
138 WRL SERIES FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
WRL WRL WRL
SALOMON PILGRIM BAXTER DREYFUS
ALL CAP MID CAP GROWTH MID CAP
============== ================ =============
DECEMBER 31, DECEMBER 31, DECEMBER 31,
-------------- ---------------- -------------
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) ....................................... 0.08 (0.03) 0.04
Net realized and unrealized gain (loss) on investments ............. 1.48 7.83 0.68
-------- -------- --------
Net income (loss) from operations ................................. 1.56 7.80 0.72
-------- -------- --------
Distributions:
Dividends from net investment income ............................... (0.06) 0.00 0.00
Dividends in excess of net investment income ....................... (0.32) (0.05) 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 ............................................... (0.38) (0.05) 0.00
-------- -------- --------
Net asset value, end of year ......................................... $ 11.18 $ 17.75 $ 10.72
======== ======== ========
Total return ......................................................... 15.57 % 78.00 % 7.20 %
Ratios and supplemental data:
Net assets at end of year (in thousands) ........................... $ 6,686 $ 37,201 $ 3,384
Ratio of expenses to average net assets ............................ 1.00 % 1.00 % 1.00 %
Ratio of net investment income (loss) to average net assets ........ 1.09 % (0.30)% 0.58 %
Portfolio turnover rate ............................................ 216.29 % 155.71 % 94.19 %
</TABLE>
See Notes to the Financial Statements, which is an integral part of this report.
1999 ANNUAL REPORT 139
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 1 -- ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Fund, Inc. (collectively referred to as the "Fund" and
individually as a "Portfolio") is 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 variable life insurance, variable annuity and group annuity
products. Each year reported on within the Annual Report reflects a full twelve
month period except as follows:
PORTFOLIO INCEPTION DATE
- ------------------------------------------------ ---------------
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
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 accounting principles generally
accepted in the United States ("GAAP"). The preparation of financial statements
in accordance with GAAP 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 are valued on the basis of 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, but not limited to, unanticipated movements in exchange
rates, the degree of government supervision and regulation of security markets
and the possibility of political or economic instability.
140 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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 December 31, 1999 are listed in Note 5.
E. FUTURES AND OPTIONS CONTRACTS
Certain Portfolios of the Fund are authorized to enter into futures and/or
options contracts to manage exposure to market, interest rate or currency
fluctuations. Contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. The primary risks
associated with the use of futures contracts and options is imperfect
correlation between the change in the value of the futures contracts and
options and the market value of the securities held, the possibility of an
illiquid market and the inability of the counter-party to meet the terms of
their contracts. The underlying face amounts at value of any open futures
contracts at December 31, 1999 are listed in Note 5. The variation margin
receivable or payable, as applicable, is included in the accompanying
Statements of Assets and Liabilities. Transactions in written covered call and
put options were as follows:
PORTFOLIO CONTRACTS* PREMIUM
- -------------------------------- ------------ --------
WRL Salomon All Cap
Balance at 05/03/1999 ......... 0 $ 0
Written ....................... 122 28
Closed ........................ (89) (22)
Exercised ..................... 0 0
Expired ....................... (33) (6)
--- ----
Balance at 12/31/1999 ......... 0 $ 0
=== ===
* Contracts not in thousands.
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. For the year ended
December 31, 1999, the following amounts of income, net of related expenses,
resulting from securities lending activities are included in interest income:
PORTFOLIO INCOME
- -------------------------------------------------------- ---------
WRL AEGON Bond ......................................... $ 38
WRL Janus Growth ....................................... 1,352
WRL Janus Global ....................................... 561
WRL LKCM Strategic Total Return ........................ 65
WRL VKAM Emerging Growth ............................... 555
WRL Alger Aggressive Growth ............................ 324
WRL AEGON Balanced ..................................... 43
WRL Federated Growth & Income .......................... 9
WRL Dean Asset Allocation .............................. 64
WRL C.A.S.E. Growth .................................... 18
WRL NWQ Value Equity ................................... 17
WRL GE/Scottish Equitable International Equity ......... 1
WRL GE U.S. Equity ..................................... 17
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 GAAP. 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.
Reclassifications between undistributed net investment income ("UNII"),
undistributed net realized capital gains ("UNCG") and additional paid-in
capital ("APIC") accounts are made to reflect income and gains available for
distribution under federal tax regulations. Net investment income, net realized
gains and net assets are not affected by these reclassifications.
1999 ANNUAL REPORT 141
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 1 -- (CONTINUED)
The Portfolios and the amounts of the reclassifications are as follows:
PORTFOLIO UNII UNCG
- ------------------------------------------- ----------- --------------
WRL Janus Growth .......................... $ 66,977 $ (66,977)
WRL Janus Global .......................... 5,322 (5,322)
WRL LKCM Strategic Total Return ........... 66 (66)
WRL VKAM Emerging Growth .................. 32,798 (32,798)
WRL Alger Aggressive Growth ............... 59,693 (59,693)
WRL AEGON Balanced ........................ 298 (298)
WRL Federated Growth & Income ............. 1,926 (1,926)
WRL Dean Asset Allocation ................. (19) 19
WRL C.A.S.E. Growth ....................... 11,402 (11,402)
WRL GE/Scottish Equitable
International Equity .................... 109 (109)
WRL GE U.S. Equity ........................ 4,385 (4,385)
WRL J.P. Morgan Real Estate
Securities .............................. (39) 39
WRL Goldman Sachs Growth .................. 120 (120)
WRL Goldman Sachs Small Cap ............... 212 (212)
WRL T. Rowe Price Dividend Growth ......... (1) 1
WRL T. Rowe Price Small Cap ............... 578 (578)
WRL Salomon All Cap ....................... 623 (623)
WRL Pilgrim Baxter Mid Cap Growth ......... 2,140 (2,140)
WRL Dreyfus Mid Cap ....................... 29 (29)
In addition, as a result of a $ 388,227 net realized gain arising from a
redemption in kind, reclassifications were made in WRL Janus Growth for
$ 388,568, increasing APIC and decreasing UNCG.
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 on the business day following 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. REAL ESTATE INVESTMENT TRUSTS
There are certain additional risks involved in investing in REITs. These
include, but are not limited to, economic conditions, changes in zoning laws,
real estate values, property taxes and interest rates. Since WRL J.P. Morgan
Real Estate Securities invests primarily in real estate related securities, the
value of its shares may fluctuate more widely than the value of shares of a
portfolio that invests in a broader range of industries.
J. 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.
K. REPURCHASE AGREEMENTS
Certain of the Portfolios of the Fund are authorized to 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.
142 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 2 -- (CONTINUED)
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.
PORTFOLIO ADVISORY FEE EXPENSE LIMIT
- -------------------------------------- -------------- --------------
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 %
(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 is
0.775 %); and 0.05 % for the Portfolio's average daily net assets above
$ 3 billion (net fee is 0.75 %). This waiver is voluntary and may be
terminated at any time upon 90 days' notice to the Portfolio.
(2) WRL Management currently waives 0.025 % of its advisory fee for the
Portfolio's average daily net assets above $ 2 billion (net fee is
0.775 %). This waiver is voluntary and may be terminated at any time upon
90 days' notice to the Portfolio.
(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 year ended December 31, 1999, as follows:
PORTFOLIO COMMISSIONS
- ------------------------------------- ------------
WRL VKAM Emerging Growth ............ $ 9
WRL Alger Aggressive Growth ......... 904
WRL Third Avenue Value .............. 7
1999 ANNUAL REPORT 143
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 2 -- (CONTINUED)
C. INVESTMENT IN AFFILIATES
The Fund did not hold investments in affiliates at December 31, 1999. Security
transactions in affiliates during the year ended December 31, 1999, are as
follows:
1999
1999 1999 DIVIDEND
PURCHASES SALES INCOME
----------- ---------- ---------
WRL Janus Global:
AEGON NV ......... $ 2,543 $ 4,917 $ 0
D. ADMINISTRATIVE SERVICES
The Portfolios are charged for expenses that specifically relate to their
individual operations. All other operating expenses of the Fund that are not
attributable to a specific Portfolio are allocated based upon the proportionate
number of policy and contract owners of the variable life insurance, variable
annuity and group annuity products. 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 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 December 31, 1999, the market value of
invested plan amounts was $135. Invested plan amounts and the total liability
for deferred compensation to the Directors under the Plan at December 31, 1999
is included in Net assets in the accompanying Statements of Assets and
Liabilities.
144 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 3 -- SECURITIES TRANSACTIONS
Securities transactions for the year ended December 31, 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 $ 11,517,714 $ 0 $ 11,403,566
WRL AEGON Bond ................................. 22,117 1,248,222 20,055 1,253,186
WRL Janus Growth ............................... 2,131,351 1,046,560 2,734,406 992,877
WRL Janus Global ............................... 931,587 136,665 847,368 185,517
WRL LKCM Strategic Total Return ................ 258,280 5,568 274,578 11,058
WRL VKAM Emerging Growth ....................... 1,272,989 15,430,657 1,263,115 15,383,301
WRL Alger Aggressive Growth .................... 853,333 0 737,780 2,555
WRL AEGON Balanced ............................. 65,633 21,088 39,858 34,419
WRL Federated Growth & Income .................. 90,597 0 85,501 6,491
WRL Dean Asset Allocation ...................... 212,584 53,027 209,692 112,041
WRL C.A.S.E. Growth ............................ 118,764 0 118,539 0
WRL NWQ Value Equity ........................... 45,297 3,783 73,238 9,939
WRL GE/Scottish Equitable
International Equity .......................... 29,966 0 34,910 0
WRL GE U.S. Equity ............................. 97,301 1,167 60,083 562
WRL Third Avenue Value ......................... 2,389 0 1,554 0
WRL J.P. Morgan Real Estate Securities ......... 6,635 0 5,461 0
WRL Goldman Sachs Growth ....................... 8,441 237 1,688 28
WRL Goldman Sachs Small Cap .................... 7,774 176 6,078 177
WRL T. Rowe Price Dividend Growth .............. 10,404 9,622 1,956 9,305
WRL T. Rowe Price Small Cap .................... 16,145 12,478 9,232 12,485
WRL Salomon All Cap ............................ 13,504 447 8,273 447
WRL Pilgrim Baxter Mid Cap Growth .............. 41,017 0 18,781 0
WRL Dreyfus Mid Cap ............................ 4,211 0 1,219 0
</TABLE>
1999 ANNUAL REPORT 145
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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, 1999, if
applicable, are available to offset future realized capital gains through the
periods listed. Each Portfolio will elect to treat the net capital losses
incurred in the two month period prior to December 31, 1999, (Post-October
Losses Deferred), if applicable, as having been incurred in the following
fiscal year.
PRIOR YEAR
POST-OCTOBER NET CAPITAL LOSS
LOSSES CARRYFORWARD
PORTFOLIO DEFERRED UTILIZED
- -------------------------------------------- -------------- ------------------
WRL J.P. Morgan Money Market ............... $ 0 $ 0
WRL AEGON Bond ............................. 284 0
WRL Janus Growth ........................... 2 0
WRL Janus Global ........................... 0 0
WRL LKCM Strategic Total Return ............ 0 0
WRL VKAM Emerging Growth ................... 0 0
WRL Alger Aggressive Growth ................ 0 0
WRL AEGON Balanced ......................... 2,354 0
WRL Federated Growth & Income .............. 186 0
WRL Dean Asset Allocation .................. 0 0
WRL C.A.S.E. Growth ........................ 0 0
WRL NWQ Value Equity ....................... 14,203 0
WRL GE/Scottish Equitable
International Equity ...................... 0 545
WRL GE U.S. Equity ......................... 0 0
WRL Third Avenue Value ..................... 0 0
WRL J.P. Morgan Real Estate Securities ..... 76 0
WRL Goldman Sachs Growth ................... 0 0
WRL Goldman Sachs Small Cap ................ 0 0
WRL T. Rowe Price Dividend Growth .......... 46 0
WRL T. Rowe Price Small Cap ................ 0 0
WRL Salomon All Cap ........................ 0 0
WRL Pilgrim Baxter Mid Cap Growth .......... 0 0
WRL Dreyfus Mid Cap ........................ 0 0
<TABLE>
<CAPTION>
DECEMBER 31, 1999 NET CAPITAL LOSS
NET CAPITAL LOSS CARRYFORWARD
PORTFOLIO CARRYFORWARD AVAILABLE THROUGH
- -------------------------------------------- ------------------- ----------------------------------
<S> <C> <C>
WRL J.P. Morgan Money Market ............... $ 0 n/a
WRL AEGON Bond ............................. 4,453 $ 4,065 through December 31, 2002
261 through December 31, 2005
127 through December 31, 2007
WRL Janus Growth ........................... 0 n/a
WRL Janus Global ........................... 0 n/a
WRL LKCM Strategic Total Return ............ 0 n/a
WRL VKAM Emerging Growth ................... 0 n/a
WRL Alger Aggressive Growth ................ 0 n/a
WRL AEGON Balanced ......................... 3,826 2,432 through December 31, 2006
1,394 through December 31, 2007
WRL Federated Growth & Income .............. 0 n/a
WRL Dean Asset Allocation .................. 568 December 31, 2007
WRL C.A.S.E. Growth ........................ 0 n/a
WRL NWQ Value Equity ....................... 0 n/a
WRL GE/Scottish Equitable
International Equity ...................... 0 n/a
WRL GE U.S. Equity ......................... 0 n/a
WRL Third Avenue Value ..................... 542 December 31, 2007
WRL J.P. Morgan Real Estate Securities ..... 331 72 through December 31, 2006
259 through December 31, 2007
WRL Goldman Sachs Growth ................... 0 n/a
WRL Goldman Sachs Small Cap ................ 0 n/a
WRL T. Rowe Price Dividend Growth .......... 63 December 31, 2007
WRL T. Rowe Price Small Cap ................ 0 n/a
WRL Salomon All Cap ........................ 0 n/a
WRL Pilgrim Baxter Mid Cap Growth .......... 0 n/a
WRL Dreyfus Mid Cap ........................ 0 n/a
</TABLE>
146 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 4 -- (CONTINUED)
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of December 31, 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 ........................... $ 426,135 $ 0 $ 0 $ 0
WRL AEGON Bond ......................................... 156,957 3 (8,392) (8,389)
WRL Janus Growth ....................................... 1,999,065 2,133,706 (4,503) 2,129,203
WRL Janus Global ....................................... 970,326 955,515 (7,038) 948,477
WRL LKCM Strategic Total Return ........................ 491,976 155,299 (26,068) 129,231
WRL VKAM Emerging Growth ............................... 925,655 994,770 (3,164) 991,606
WRL Alger Aggressive Growth ............................ 620,478 512,953 (11,568) 501,385
WRL AEGON Balanced ..................................... 90,325 20,170 (2,990) 17,180
WRL Federated Growth & Income .......................... 80,592 2,181 (8,679) (6,498)
WRL Dean Asset Allocation .............................. 256,436 17,697 (21,619) (3,922)
WRL C.A.S.E. Growth .................................... 89,646 15,294 (11,176) 4,118
WRL NWQ Value Equity ................................... 119,532 28,687 (12,626) 16,061
WRL GE/Scottish Equitable International Equity ......... 26,073 8,934 (1,358) 7,576
WRL GE U.S. Equity ..................................... 143,516 32,912 (10,754) 22,158
WRL Third Avenue Value ................................. 17,338 3,528 (2,149) 1,379
WRL J.P. Morgan Real Estate Securities ................. 3,365 14 (302) (288)
WRL Goldman Sachs Growth ............................... 7,120 1,292 (297) 995
WRL Goldman Sachs Small Cap ............................ 2,506 361 (145) 216
WRL T. Rowe Price Dividend Growth ...................... 8,967 351 (683) (332)
WRL T. Rowe Price Small Cap ............................ 7,491 2,388 (488) 1,900
WRL Salomon All Cap .................................... 6,639 507 (480) 27
WRL Pilgrim Baxter Mid Cap Growth ...................... 27,210 10,149 (402) 9,747
WRL Dreyfus Mid Cap .................................... 3,204 298 (169) 129
</TABLE>
1999 ANNUAL REPORT 147
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 5 -- COMMITMENTS
For the year ended December 31, 1999, WRL Janus Growth, WRL Janus Global, WRL
GE/Scottish Equitable International Equity, WRL GE U.S. Equity, WRL Third
Avenue Value and WRL T. Rowe Price Dividend Growth entered into forward foreign
currency contracts. These obligate each Portfolio to deliver currencies at
specified future dates. The open contracts at December 31, 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 Global
British Pound ............ (35) 01/04/2000 $ (56) $ 0
British Pound ............ (51) 01/05/2000 (82) 0
British Pound ............ (43) 01/07/2000 (69) 0
British Pound ............ 17,700 04/07/2000 28,594 (789)
British Pound ............ (900) 04/07/2000 (1,454) 36
British Pound ............ (2,000) 04/07/2000 (3,231) 8
British Pound ............ (3,800) 04/07/2000 (6,139) 25
British Pound ............ (4,200) 04/07/2000 (6,785) 23
British Pound ............ (16,800) 04/07/2000 (27,140) 677
British Pound ............ 300 04/14/2000 485 (14)
British Pound ............ (4,000) 04/14/2000 (6,462) 144
British Pound ............ (500) 04/20/2000 (808) 4
British Pound ............ (2,190) 06/09/2000 (3,537) 12
British Pound ............ (9,110) 06/09/2000 (14,714) 56
Canadian Dollar .......... (700) 04/07/2000 (484) (5)
Canadian Dollar .......... (700) 04/07/2000 (484) (1)
Canadian Dollar .......... (1,800) 04/07/2000 (1,246) (14)
Canadian Dollar .......... (700) 05/18/2000 (485) (5)
Euro Dollar .............. (31) 01/03/2000 (31) 0
Euro Dollar .............. (18) 01/04/2000 (18) 0
Euro Dollar .............. (30) 01/05/2000 (30) 0
Euro Dollar .............. 16,000 04/07/2000 16,244 59
Euro Dollar .............. 700 04/07/2000 711 (60)
Euro Dollar .............. (700) 04/07/2000 (711) 50
Euro Dollar .............. (1,600) 04/07/2000 (1,624) 71
Euro Dollar .............. (3,400) 04/07/2000 (3,452) 120
Euro Dollar .............. (5,000) 04/07/2000 (5,076) 123
Euro Dollar .............. (8,000) 04/07/2000 (8,122) 8
Euro Dollar .............. (30,000) 04/07/2000 (30,456) 504
Euro Dollar .............. (32,000) 04/07/2000 (32,486) 513
Euro Dollar .............. (33,200) 04/14/2000 (33,721) 2,134
Euro Dollar .............. 8,000 04/20/2000 8,129 (519)
Euro Dollar .............. (9,900) 04/20/2000 (10,060) 834
Euro Dollar .............. (28,000) 06/02/2000 (28,538) 805
Euro Dollar .............. (3,600) 06/09/2000 (3,671) 25
Euro Dollar .............. (6,400) 06/09/2000 (6,526) 10
Hong Kong Dollar ......... 3,000 05/07/2001 383 3
Hong Kong Dollar ......... (2,600) 05/07/2001 (332) (5)
</TABLE>
148 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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)
Hong Kong Dollar .......... (3,000) 05/07/2001 $ (383) $ (5)
Hong Kong Dollar .......... (4,000) 05/07/2001 (511) (7)
Hong Kong Dollar .......... (4,000) 05/07/2001 (511) (3)
Hong Kong Dollar .......... (5,000) 05/07/2001 (638) (10)
Hong Kong Dollar .......... (6,600) 05/07/2001 (843) (15)
Hong Kong Dollar .......... (7,000) 05/07/2001 (894) (15)
Hong Kong Dollar .......... (7,000) 05/07/2001 (894) (7)
Hong Kong Dollar .......... (8,000) 05/07/2001 (1,021) (13)
Hong Kong Dollar .......... (9,400) 05/07/2001 (1,200) (15)
Hong Kong Dollar .......... (12,000) 05/07/2001 (1,532) (23)
Hong Kong Dollar .......... (12,500) 05/07/2001 (1,596) (28)
Hong Kong Dollar .......... (14,000) 05/07/2001 (1,787) (28)
Hong Kong Dollar .......... (18,000) 05/07/2001 (2,298) (40)
Hong Kong Dollar .......... (23,500) 05/07/2001 (3,000) (20)
Hong Kong Dollar .......... (26,400) 05/07/2001 (3,370) (58)
Hong Kong Dollar .......... (26,500) 05/07/2001 (3,383) (52)
Hong Kong Dollar .......... (28,000) 05/07/2001 (3,574) (11)
Hong Kong Dollar .......... (32,500) 05/07/2001 (4,149) (27)
Hong Kong Dollar .......... (14,000) 05/10/2001 (1,787) (8)
Hong Kong Dollar .......... (15,000) 05/10/2001 (1,915) (10)
Hong Kong Dollar .......... (24,000) 05/10/2001 (3,064) (14)
Hong Kong Dollar .......... (25,000) 05/10/2001 (3,191) (7)
Hong Kong Dollar .......... (25,700) 05/10/2001 (3,281) (14)
Hong Kong Dollar .......... (40,000) 05/10/2001 (5,106) (5)
Japanese Yen .............. (3,352) 01/04/2000 (33) 0
Japanese Yen .............. 395,000 03/06/2000 3,908 140
Japanese Yen .............. (395,000) 03/06/2000 (3,908) (113)
Japanese Yen .............. 2,505,000 03/16/2000 24,826 889
Japanese Yen .............. (350,000) 03/16/2000 (3,469) 24
Japanese Yen .............. (2,805,000) 03/16/2000 (27,799) (672)
Japanese Yen .............. 3,100,000 04/07/2000 30,834 1,078
Japanese Yen .............. (520,000) 04/07/2000 (5,172) (190)
Japanese Yen .............. (700,000) 04/07/2000 (6,963) (201)
Japanese Yen .............. (700,000) 04/07/2000 (6,963) (137)
Japanese Yen .............. (2,580,000) 04/07/2000 (25,663) (975)
Japanese Yen .............. (200,000) 04/14/2000 (1,992) (54)
Japanese Yen .............. (2,800,000) 04/20/2000 (27,910) (642)
Japanese Yen .............. (500,000) 05/18/2000 (5,008) (144)
Japanese Yen .............. (700,000) 06/02/2000 (7,028) (212)
Swiss Franc ............... (332) 01/04/2000 (208) 0
Swiss Franc ............... (437) 01/05/2000 (275) (1)
</TABLE>
1999 ANNUAL REPORT 149
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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)
Swiss Franc ..................... (317) 01/06/2000 $ (200) $ (1)
Swiss Franc ..................... 3,600 04/20/2000 2,291 8
Swiss Franc ..................... (2,200) 04/20/2000 (1,400) 27
Swiss Franc ..................... (2,200) 04/20/2000 (1,400) 4
Swiss Franc ..................... (3,100) 06/02/2000 (1,983) 55
----------- -------
Total WRL Janus Global ......... $ (298,927) $ 3,280
=========== =======
</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
$ 1,147 have been segregated with the custodian to cover margin requirements
for the following open futures contracts at December 31, 1999:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT APPRECIATION
TYPE CONTRACTS DATE VALUE (DEPRECIATION)
- ------------------------ ----------- ------------ ---------- ---------------
<S> <C> <C> <C> <C>
S&P 500 Index ......... 22 03/17/2000 $ 8,163 $ 252
</TABLE>
WRL Goldman Sachs Small Cap entered into Russell 2000 Index futures contracts,
which obligate the Portfolio to settle variation margins in cash daily. Cash in
the amount of $ 25, included in the accompanying Statements of Assets and
Liabilities, is segregated and held by the custodian to cover margin
requirements for the following open futures contracts at December 31, 1999:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT APPRECIATION
TYPE CONTRACTS DATE VALUE (DEPRECIATION)
- ----------------------------- ---------- ------------ ------- ---------------
<S> <C> <C> <C> <C>
Russell 2000 Index ......... 2 03/17/2000 $ 510 $ 9
</TABLE>
150 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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 and deductions under the 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. For the year ended
December 31, 1999, ratio of expenses to average net assets is net of the
advisory fee waiver (see Note 2A). For the years prior to 1999, ratio of
expenses to average net assets is net of the advisory fee waiver and fees paid
indirectly. Without the advisory fee waived by WRL Management and the fees paid
indirectly, ratio of expenses to average net assets for each period presented
would be as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
----------------------------------------------------------------
PORTFOLIO 1999 1998 1997 1996 1995
- -------------------------------------------------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market ........................... * * * * *
WRL AEGON Bond ......................................... * * * * *
WRL Janus Growth ....................................... 0.82 % * * * *
WRL Janus Global ....................................... * * * * *
WRL LKCM Strategic Total Return ........................ * * * * *
WRL VKAM Emerging Growth ............................... * * * * *
WRL Alger Aggressive Growth ............................ * * * * *
WRL AEGON Balanced ..................................... * * * * *
WRL Federated Growth & Income .......................... * * * * 1.08 %
WRL Dean Asset Allocation .............................. * * * * *
WRL C.A.S.E. Growth .................................... * * 1.14 % 1.70 % 4.17 %
WRL NWQ Value Equity ................................... * * * 1.10 % **
WRL GE/Scottish Equitable International Equity ......... 1.84 % 1.96 % 3.14 % ** **
WRL GE U.S. Equity ..................................... * * 1.54 % ** **
WRL Third Avenue Value ................................. 1.06 % 1.13 % ** ** **
WRL J.P. Morgan Real Estate Securities ................. 2.69 % 3.34 % ** ** **
WRL Goldman Sachs Growth ............................... 1.79 % ** ** ** **
WRL Goldman Sachs Small Cap ............................ 3.72 % ** ** ** **
WRL T. Rowe Price Dividend Growth ...................... 1.57 % ** ** ** **
WRL T. Rowe Price Small Cap ............................ 1.64 % ** ** ** **
WRL Salomon All Cap .................................... 1.91 % ** ** ** **
WRL Pilgrim Baxter Mid Cap Growth ...................... 0.94 % ** ** ** **
WRL Dreyfus Mid Cap .................................... 3.26 % ** ** ** **
</TABLE>
* Ratio difference less than 0.01%.
** Portfolio was not in existence during this period.
1999 ANNUAL REPORT 151
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
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 December 31, 1999, the security is on loan (see Note 1F). The market
value of all securities on loan, included in Other in the accompanying
Statements of Assets and Liabilities at December 31, 1999, by Portfolio,
is as follows:
PORTFOLIO MARKET VALUE
- ------------------------------------------------ -------------
WRL AEGON Bond ................................. $ 20,795
WRL Janus Growth ............................... 416,965
WRL Janus Global ............................... 192,804
WRL LKCM Strategic Total Return ................ 32,748
WRL VKAM Emerging Growth ....................... 325,314
WRL Alger Aggressive Growth .................... 182,495
WRL AEGON Balanced ............................. 3,553
WRL Federated Growth & Income .................. 2,185
WRL Dean Asset Allocation ...................... 10,203
WRL C.A.S.E. Growth ............................ 6,006
WRL NWQ Value Equity ........................... 7,679
WRL GE/Scottish Equitable International Equity . 1,111
WRL GE U.S. Equity ............................. 3,934
(c) Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
(d) Floating or variable rate note. Rate is listed as of December 31, 1999.
(e) At December 31, 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 $ 9,434 Fannie Mae ARM - 313215
6.94 % due 08/01/2025 $ 2,164
WRL Alger Aggressive Growth $ 10,000 Freddie Mac - Series 1517 - Class G
6.90 % due 07/15/2021 9,889
$ 4,705 Small Business Association - 504101
8.13 % due 03/25/2023 3,917
WRL Federated Growth & Income $ 2,046 U.S. Treasury Note
11.25 % due 02/15/2015 2,978
WRL NWQ Value Equity $ 6,000 Fannie Mae Floating Rate Bond - Series
1992-177 - Class F
7.65 % due 10/25/2022 6,218
$ 6,329 Small Business Association - 503810
6.00 % due 06/25/2022 4,650
WRL Goldman Sachs Growth $ 54 Small Business Association - 503843
6.00 % due 07/25/2022 39
</TABLE>
152 WRL SERIES FUND, INC.
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AT DECEMBER 31, 1999
ALL AMOUNTS IN THOUSANDS
NOTE 7 -- (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
PORTFOLIO COLLATERAL AND ACCRUED INTEREST
- ----------------------------------- ------------------------------------------ ---------------------
<S> <C> <C>
WRL Goldman Sachs Small Cap $ 8,689 Fannie Mae ARM - 223556
6.82 % due 07/01/2023 $ 645
WRL Salomon All Cap $ 690 U.S. Treasury Note
8.75 % due 05/15/2017 833
WRL Pilgrim Baxter Mid Cap Growth $ 13,061 Fannie Mae ARM - 362470
6.99 % due 04/01/2026 2,977
WRL Dreyfus Mid Cap $ 209 Small Business Association - 504522
8.13 % due 11/25/2010 192
</TABLE>
(f) For WRL GE/Scottish Equitable International Equity, the Corporate Debt
Securities - Aerospace category has been omitted since its percentage of
net assets is less than 0.01 %. The security in this category, British
Aerospace PLC (7.45 %, due 11/30/2003) has a cost and market value of less
than $ 1. For WRL Salomon All Cap, the Corporate Debt Securities -
Automotive category has been omitted since its percentage of net assets is
less than 0.01 %. The security in this category, Breed Technologies, Inc.
(9.25 % due 04/15/2008) has a cost and market value of less than $ 1; it
is also currently in default on interest payments.
(g) Market value is less than $ 1.
(h) Harnischfeger Industries, Inc. is currently in default on interest
payments.
(i) At December 31, 1999, a portion or all of the security is segregated with
the custodian to cover margin requirements for open futures and option
contracts. The market value of all securities segregated at December 31,
1999 is $ 1,147 for WRL GE U.S. Equity and $ 49 for WRL Salomon All Cap.
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
1999 ANNUAL REPORT 153
<PAGE>
WRL SERIES FUND, INC.
OFFICE OF THE WRL SERIES FUND
570 Carillon Parkway
St. Petersburg, FL 33716
1-800-851-9777
INDEPENDENT ACCOUNTANTS:
PricewaterhouseCoopers LLP
400 North Ashley Street,
Suite 2800
Tampa, FL 33602
CUSTODIAN:
Investors Bank & Trust Company
200 Clarendon Street
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
Management Corporation AEGON USA
301 Commerce Street, Suite 1600 Investment Management, Inc.
Fort Worth, TX 76102 4333 Edgewood Road, N.E.
Cedar Rapids, IA 52499
Federated Investment Counseling
Federated Investors Tower Van Kampen Asset
Pittsburgh, PA 15222-3779 Management Inc.
One Parkview Plaza
NWQ Investment Oakbrook Terrace, IL 60181
Management Company, Inc.
2049 Century Park East, 4th Floor Fred Alger Management, Inc.
Los Angeles, CA 90067 1 World Trade Center, Suite 9333
New York, NY 10048
EQSF Advisers, Inc.
767 Third Avenue J.P. Morgan Investment
New York, NY 10017-2023 Management Inc.
522 Fifth Avenue
C.A.S.E. Management, Inc. New York, NY 10036
5355 Tower Center Road, Suite 702
Boca Raton, FL 33486 Dean Investment Associates
2480 Kettering Tower
Goldman Sachs Asset Management Dayton, OH 45423-2480
One New York Plaza
New York, NY 10004 GE Investment
Management Incorporated
Salomon Brothers Asset Management Inc 3003 Summer Street
7 World Trade Center Stamford, CT 06905
New York, NY 10048
Pilgrim Baxter & Associates, Ltd.
T. Rowe Price Associates, Inc. 825 Duportail Road
100 E. Pratt Street Wayne, PA 19087
Baltimore, MD 21202
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
[WRL 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.
February 2000
ACC00001-2/00
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL FREEDOM ATTAINER/registered trademark/ VARIABLE ANNUITY
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
WRL J.P. Morgan Money Market 02/24/1989
WRL AEGON Bond 02/24/1989
WRL Janus Growth 02/24/1989
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
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE TEN SINCE
SUBACCOUNT YEAR YEARS YEARS YEARS INCEPTION
- ---------- -------- -------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (2.75)% 2.31 % 3.28 % 3.25 % 3.52 %
WRL AEGON Bond (10.44)% 2.17 % 5.47 % 5.83 % 6.54 %
WRL Janus Growth 51.39 % 43.00 % 37.96 % 22.04 % 23.45 %
WRL Janus Global 62.68 % 35.64 % 31.06 % n/a 26.25 %
WRL LKCM Strategic Total Return 4.38 % 11.69 % 14.65 % n/a 12.28 %
WRL VKAM Emerging Growth 96.32 % 48.08 % 41.01 % n/a 30.96 %
WRL Alger Aggressive Growth 60.62 % 43.56 % 34.71 % n/a 28.58 %
WRL AEGON Balanced (4.55)% 6.08 % 9.48 % n/a 6.76 %
WRL Federated Growth & Income (11.94)% 4.26 % 9.54 % n/a 7.04 %
WRL Dean Asset Allocation (13.11)% 3.19 % n/a n/a 8.37 %
WRL C.A.S.E. Growth 25.88 % 13.72 % n/a n/a 13.40 %
WRL NWQ Value Equity 0.31 % 5.94 % n/a n/a 8.27 %
WRL GE/Scottish Equitable International Equity 17.10 % n/a n/a n/a 11.67 %
WRL GE U.S. Equity 10.64 % n/a n/a n/a 19.68 %
WRL Third Avenue Value 7.98 % n/a n/a n/a (0.73)%
WRL J.P. Morgan Real Estate Securities (11.27)% n/a n/a n/a (16.73)%
WRL Goldman Sachs Growth* n/a n/a n/a n/a 10.32 %
WRL Goldman Sachs Small Cap* n/a n/a n/a n/a 10.22 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a n/a (14.37)%
WRL T. Rowe Price Small Cap* n/a n/a n/a n/a 31.14 %
WRL Salomon All Cap* n/a n/a n/a n/a 8.41 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a n/a 70.31 %
WRL Dreyfus Mid Cap* n/a n/a n/a n/a 0.11 %
</TABLE>
* Not annualized.
The total returns are based on the Subaccounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Subaccount 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 Subaccounts
calculated as described in the current prospectus for the Contract. The
calculations set forth assume a hypothetical amount held in a Subaccount for a
Contract for various periods of time shown. Each period of time ends at
December 31, 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 SUBACCOUNT PERFORMANCE 1
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL FREEDOM BELLWETHER/registered trademark/ VARIABLE ANNUITY
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
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
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE SINCE
SUBACCOUNT YEAR YEARS YEARS INCEPTION
- ---------- -------- ------- ------- ---------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 3.27 % 3.58 % 3.63 % 2.98 %
WRL AEGON Bond (4.41)% 3.45 % 5.77 % 4.60 %
WRL Janus Growth 57.33 % 43.52 % 37.91 % 24.56 %
WRL Janus Global 68.61 % 36.25 % 31.06 % 26.10 %
WRL LKCM Strategic Total Return 10.39 % 12.72 % 14.82 % 12.21 %
WRL VKAM Emerging Growth 102.19 % 48.55 % 40.95 % 30.80 %
WRL Alger Aggressive Growth 66.55 % 44.07 % 34.69 % 28.55 %
WRL AEGON Balanced 1.47 % 7.24 % 9.71 % 6.98 %
WRL Federated Growth & Income (5.90)% 5.47 % 9.78 % 7.26 %
WRL Dean Asset Allocation (7.07)% 4.44 % n/a 8.77 %
WRL C.A.S.E. Growth 31.86 % 14.70 % n/a 14.15 %
WRL NWQ Value Equity 6.33 % 7.11 % n/a 9.12 %
WRL GE/Scottish Equitable International Equity 23.10 % n/a n/a 13.21 %
WRL GE U.S. Equity 16.64 % n/a n/a 20.97 %
WRL Third Avenue Value 13.99 % n/a n/a 2.28 %
WRL J.P. Morgan Real Estate Securities (5.23)% n/a n/a (12.66)%
WRL Goldman Sachs Growth* n/a n/a n/a 16.32 %
WRL Goldman Sachs Small Cap* n/a n/a n/a 16.23 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (8.35)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 37.12 %
WRL Salomon All Cap* n/a n/a n/a 14.41 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 76.25 %
WRL Dreyfus Mid Cap* n/a n/a n/a 6.12 %
</TABLE>
* Not annualized.
The total returns are based on the Subaccounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Subaccount 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 Subaccounts
calculated as described in the current prospectus for the Contract. The
calculations set forth assume a hypothetical amount held in a Subaccount for a
Contract for various periods of time shown. Each period of time ends at
December 31, 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 SUBACCOUNT PERFORMANCE
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL FREEDOM CONQUEROR/registered trademark/ VARIABLE ANNUITY
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
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
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE SINCE
SUBACCOUNT YEAR YEARS YEARS INCEPTION
- ---------- -------- -------- -------- ---------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (4.96)% 1.46 % 2.72 % 2.55 %
WRL AEGON Bond (12.64)% 1.32 % 4.94 % 4.20 %
WRL Janus Growth 49.10 % 42.43 % 37.63 % 24.42 %
WRL Janus Global 60.38 % 35.04 % 30.70 % 25.98 %
WRL LKCM Strategic Total Return 2.16 % 10.93 % 14.22 % 11.94 %
WRL VKAM Emerging Growth 93.96 % 47.53 % 40.68 % 30.70 %
WRL Alger Aggressive Growth 58.32 % 42.99 % 34.37 % 28.33 %
WRL AEGON Balanced (6.76)% 5.27 % 8.99 % 6.44 %
WRL Federated Growth & Income (14.13)% 3.43 % 9.06 % 6.72 %
WRL Dean Asset Allocation (15.30)% 2.35 % n/a 8.02 %
WRL C.A.S.E. Growth 23.63 % 12.98 % n/a 13.02 %
WRL NWQ Value Equity (1.90)% 5.13 % n/a 7.84 %
WRL GE/Scottish Equitable International Equity 14.87 % n/a n/a 11.46 %
WRL GE U.S. Equity 8.41 % n/a n/a 19.46 %
WRL Third Avenue Value 5.76 % n/a n/a (1.45)%
WRL J.P. Morgan Real Estate Securities (13.46)% n/a n/a (17.60)%
WRL Goldman Sachs Growth* n/a n/a n/a 8.17 %
WRL Goldman Sachs Small Cap* n/a n/a n/a 8.07 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (16.50)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 28.96 %
WRL Salomon All Cap* n/a n/a n/a 6.26 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 68.10 %
WRL Dreyfus Mid Cap* n/a n/a n/a (2.03)%
</TABLE>
* Not annualized.
The total returns are based on the Subaccounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Subaccount 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 Subaccounts
calculated as described in the current prospectus for the Contract. The
calculations set forth assume a hypothetical amount held in a Subaccount for a
Contract for various periods of time shown. Each period of time ends at
December 31, 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 SUBACCOUNT PERFORMANCE 3
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL FREEDOM WEALTH CREATOR/registered trademark/ VARIABLE ANNUITY
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
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
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE SINCE
SUBACCOUNT YEAR YEARS YEARS INCEPTION
- ---------- -------- ------- ------- ---------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (4.96)% 1.46 % 2.72 % 2.55 %
WRL AEGON Bond (12.64)% 1.32 % 4.94 % 4.20 %
WRL Janus Growth 49.10 % 42.43 % 37.63 % 24.42 %
WRL Janus Global 60.38 % 35.04 % 30.70 % 25.98 %
WRL LKCM Strategic Total Return 2.16 % 10.93 % 14.22 % 11.94 %
WRL VKAM Emerging Growth 93.96 % 47.53 % 40.68 % 30.70 %
WRL Alger Aggressive Growth 58.32 % 42.99 % 34.37 % 28.33 %
WRL AEGON Balanced (6.76)% 5.27 % 8.99 % 6.44 %
WRL Federated Growth & Income (14.13)% 3.43 % 9.06 % 6.72 %
WRL Dean Asset Allocation (15.30)% 2.35 % n/a 8.02 %
WRL C.A.S.E. Growth 23.63 % 12.98 % n/a 13.02 %
WRL NWQ Value Equity (1.90)% 5.13 % n/a 7.84 %
WRL GE/Scottish Equitable International Equity 14.87 % n/a n/a 11.46 %
WRL GE U.S. Equity 8.41 % n/a n/a 19.46 %
WRL Third Avenue Value 5.76 % n/a n/a (1.45)%
WRL J.P. Morgan Real Estate Securities (13.46)% n/a n/a (17.60)%
WRL Goldman Sachs Growth* n/a n/a n/a 8.17 %
WRL Goldman Sachs Small Cap* n/a n/a n/a 8.07 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (16.50)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 28.96 %
WRL Salomon All Cap* n/a n/a n/a 6.26 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 68.10 %
WRL Dreyfus Mid Cap* n/a n/a n/a (2.03)%
</TABLE>
* Not annualized.
The total returns are based on the Subaccounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Subaccount 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 Subaccounts
calculated as described in the current prospectus for the Contract. The
calculations set forth assume a hypothetical amount held in a Subaccount for a
Contract for various periods of time shown. Each period of time ends at
December 31, 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 SUBACCOUNT PERFORMANCE
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL FREEDOM PREMIER(SM) VARIABLE ANNUITY
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
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 01/01/1997
WRL GE U.S. Equity 01/01/1997
WRL Third Avenue Value 01/01/1998
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>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE SINCE
SUBACCOUNT YEAR YEARS YEARS INCEPTION
- ---------- -------- ------- ------- ---------
<S> <C> <C> <C> <C>
WRL J.P. Morgan Money Market (3.91)% 1.50 % 2.77 % 2.83 %
WRL AEGON Bond (11.59)% 1.37 % 4.98 % 4.46 %
WRL Janus Growth 50.15 % 42.46 % 37.64 % 24.51 %
WRL Janus Global 61.43 % 35.07 % 30.72 % 26.06 %
WRL LKCM Strategic Total Return 3.21 % 10.97 % 14.25 % 11.97 %
WRL VKAM Emerging Growth 95.01 % 47.55 % 40.70 % 30.71 %
WRL Alger Aggressive Growth 59.37 % 43.02 % 34.39 % 28.34 %
WRL AEGON Balanced (5.71)% 5.31 % 9.03 % 6.47 %
WRL Federated Growth & Income (13.08)% 3.47 % 9.09 % 6.76 %
WRL Dean Asset Allocation (14.25)% 2.40 % n/a 8.06 %
WRL C.A.S.E. Growth 24.68 % 13.02 % n/a 13.05 %
WRL NWQ Value Equity (0.85)% 5.18 % n/a 7.88 %
WRL GE/Scottish Equitable International Equity 15.92 % n/a n/a 11.50 %
WRL GE U.S. Equity 9.46 % n/a n/a 19.49 %
WRL Third Avenue Value 6.81 % n/a n/a (1.40)%
WRL J.P. Morgan Real Estate Securities (12.41)% n/a n/a (17.54)%
WRL Goldman Sachs Growth* n/a n/a n/a 9.20 %
WRL Goldman Sachs Small Cap* n/a n/a n/a 9.11 %
WRL T. Rowe Price Dividend Growth* n/a n/a n/a (15.47)%
WRL T. Rowe Price Small Cap* n/a n/a n/a 30.00 %
WRL Salomon All Cap* n/a n/a n/a 7.29 %
WRL Pilgrim Baxter Mid Cap Growth* n/a n/a n/a 69.14 %
WRL Dreyfus Mid Cap* n/a n/a n/a (1.00)%
</TABLE>
* Not annualized.
The total returns are based on the Subaccounts' historical performance and
neither indicate nor guarantee future investment results. The total return and
value of a Subaccount will fluctuate so that a Contract, when surrendered, may
be more or less than the amount of its purchase payments.
The foregoing figures set forth the historical total returns of the Subaccounts
calculated as described in the current prospectus for the Contract, subject to
the following. The calculations set forth assume a hypothetical amount held in
a Subaccount for a Contract for various periods of time shown. Each period of
time ends at December 31, 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 seven year
declining withdrawal charge which is initially a maximum of 7 % of the amount
of the purchase payment surrendered or withdrawn.
This information must be preceded or accompanied by a currently effective
prospectus for each of the WRL Freedom Premier(SM) Variable Annuity and the 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 SUBACCOUNT PERFORMANCE 5
<PAGE>
WRL QUARTERLY SUBACCOUNT PERFORMANCE
WRL SERIES LIFE ACCOUNT
AT DECEMBER 31, 1999
INCEPTION
SUBACCOUNT DATE
- ---------- ----------
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 (1) 05/01/1998
WRL Goldman Sachs Growth(1)(2) 07/01/1999
WRL Goldman Sachs Small Cap(1)(2) 07/01/1999
WRL T. Rowe Price Dividend Growth(1)(2) 07/01/1999
WRL T. Rowe Price Small Cap(1)(2) 07/01/1999
WRL Salomon All Cap(1)(2) 07/01/1999
WRL Pilgrim Baxter Mid Cap Growth(1)(2) 07/01/1999
WRL Dreyfus Mid Cap(1)(2) 07/01/1999
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
ONE THREE FIVE TEN SINCE
SUBACCOUNT YEAR YEARS YEARS YEARS INCEPTION
- ---------- ------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 3.92 % 4.21 % 4.26 % 3.83 % 4.31 %
WRL AEGON Bond (3.81)% 4.08 % 6.40 % 6.38 % 6.13 %
WRL Janus Growth 58.25 % 44.31 % 38.64 % 22.52 % 22.40 %
WRL Janus Global 69.58 % 37.01 % 31.76 % n/a 26.20 %
WRL LKCM Strategic Total Return 11.07 % 13.38 % 15.46 % n/a 12.83 %
WRL VKAM Emerging Growth 103.33 % 49.35 % 41.69 % n/a 31.48 %
WRL Alger Aggressive Growth 67.52 % 44.86 % 35.40 % n/a 29.22 %
WRL AEGON Balanced 2.11 % 7.89 % 10.35 % n/a 7.59 %
WRL Federated Growth & Income (5.31)% 6.11 % 10.41 % n/a 7.87 %
WRL Dean Asset Allocation (6.48)% 5.08 % n/a n/a 9.39 %
WRL C.A.S.E. Growth 32.65 % 15.37 % n/a n/a 14.82 %
WRL NWQ Value Equity 6.98 % 7.76 % n/a n/a 9.77 %
WRL GE/Scottish Equitable International Equity 23.84 % n/a n/a n/a 13.88 %
WRL GE U.S. Equity 17.35 % n/a n/a n/a 21.67 %
WRL Third Avenue Value 14.68 % n/a n/a n/a 2.91 %
WRL J.P. Morgan Real Estate Securities (1) (4.63)% n/a n/a n/a (12.10)%
WRL Goldman Sachs Growth(1)(2) n/a n/a n/a n/a 12.91 %
WRL Goldman Sachs Small Cap(1)(2) n/a n/a n/a n/a 9.23 %
WRL T. Rowe Price Dividend Growth(1)(2) n/a n/a n/a n/a (8.37)%
WRL T. Rowe Price Small Cap(1)(2) n/a n/a n/a n/a 23.09 %
WRL Salomon All Cap(1)(2) n/a n/a n/a n/a 7.02 %
WRL Pilgrim Baxter Mid Cap Growth(1)(2) n/a n/a n/a n/a 59.78 %
WRL Dreyfus Mid Cap(1)(2) n/a n/a n/a n/a 1.44 %
</TABLE>
(1) Not available in the WRL Freedom Wealth Protector/registered trademark/.
(2) Not annualized.
WRL Series Life Account is the underlying investment vehicle for the
Subaccounts funding the variable universal life insurance products of Western
Reserve Life Assurance Co. of Ohio. The returns for each Subaccount 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 Subaccount 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.
6 WRL QUARTERLY SUBACCOUNT PERFORMANCE
<PAGE>
AUSA QUARTERLY SUBACCOUNT PERFORMANCE
AUSA SERIES LIFE ACCOUNT
AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
STANDARD AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------
INCEPTION ONE THREE FIVE TEN SINCE
SUBACCOUNT DATE YEAR YEARS YEARS YEARS INCEPTION*
- ---------- ----------- ------ ------ ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C>
WRL J.P. Morgan Money Market 06/28/1999 n/a n/a n/a n/a 2.15 %
WRL AEGON Bond 06/28/1999 n/a n/a n/a n/a 0.41 %
WRL Janus Growth 06/28/1999 n/a n/a n/a n/a 39.59 %
WRL Janus Global 06/28/1999 n/a n/a n/a n/a 52.55 %
WRL LKCM Strategic Total Return 06/28/1999 n/a n/a n/a n/a 7.20 %
WRL VKAM Emerging Growth 06/28/1999 n/a n/a n/a n/a 79.01 %
WRL Alger Aggressive Growth 06/28/1999 n/a n/a n/a n/a 53.58 %
WRL AEGON Balanced 06/28/1999 n/a n/a n/a n/a (0.67)%
WRL Federated Growth & Income 06/28/1999 n/a n/a n/a n/a (6.88)%
WRL Dean Asset Allocation 06/28/1999 n/a n/a n/a n/a (5.66)%
WRL C.A.S.E. Growth 06/28/1999 n/a n/a n/a n/a 9.63 %
WRL NWQ Value Equity 06/28/1999 n/a n/a n/a n/a (6.59)%
WRL GE/Scottish Equitable International Equity 06/28/1999 n/a n/a n/a n/a 23.22 %
WRL GE U.S. Equity 06/28/1999 n/a n/a n/a n/a 7.89 %
WRL Third Avenue Value 06/28/1999 n/a n/a n/a n/a 13.39 %
WRL J.P. Morgan Real Estate Securities 06/28/1999 n/a n/a n/a n/a (8.39)%
WRL Goldman Sachs Growth 06/28/1999 n/a n/a n/a n/a 19.40 %
WRL Goldman Sachs Small Cap 06/28/1999 n/a n/a n/a n/a 13.51 %
WRL T. Rowe Price Dividend Growth 06/28/1999 n/a n/a n/a n/a (5.81)%
WRL T. Rowe Price Small Cap 06/28/1999 n/a n/a n/a n/a 28.89 %
WRL Salomon All Cap 06/28/1999 n/a n/a n/a n/a 9.71 %
WRL Pilgrim Baxter Mid Cap Growth 06/28/1999 n/a n/a n/a n/a 72.42 %
WRL Dreyfus Mid Cap 06/28/1999 n/a n/a n/a n/a 4.66 %
</TABLE>
* Not annualized.
The AUSA Series Life Account is the underlying investment
vehicle for the Subaccounts funding the AUSA Financial Freedom Builder(SM). The
return for each Subaccount reflects 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 Subaccount 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 AUSA Financial Freedom Builder(SM) and WRL Series Fund, Inc. Read
the prospectuses carefully before investing. This policy has limitations. For
costs and complete details of the coverage, contact AUSA Life Insurance Company,
Inc.
AUSA QUARTERLY SUBACCOUNT PERFORMANCE 7
<PAGE>
Appendix to Electronic Format Page 1 of 6
WRL Series Fund. Inc.
Page 1 (photo) Shown is John R. Kenney, Chairman of the Board
Page 5 (graph 1) Pie chart depicting portfolio composition as a percentage of
total portfolio net assets.
Commercial Paper 32.56%
Short-Term Obligations 20.24%
Certificates of Deposits 13.72%
Short-Term US Government Obligations 32.62%
Bar chart depicting maturity composition of the portfolio at
December 31, 1999. (All amounts in thousands.)
Market Value
30 days $187,293
31-60 days $80,117
61-90 days $37,257
91-180 days $24,011
181-270 days $45,990
271 days to 1 year $51,467
Page 7 (graph 2) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Lehman
Brothers Government/Corporate Bond Index (LB) over the same
time frame.
Portfolio LB Index
Inception 10/2/86 $10,000 $10,000
Period Ended 12/31/86 $10,412 $10,310
FYE 12/31/87 $9,823 $10,540
FYE 12/31/88 $10,583 $11,340
FYE 12/31/89 $12,133 $12,960
FYE 12/31/90 $12,887 $14,030
FYE 12/31/91 $15,317 $16,290
FYE 12/31/92 $16,358 $17,530
FYE 12/31/93 $18,547 $19,460
FYE 12/31/94 $17,260 $18,780
FYE 12/31/95 $21,228 $22,390
FYE 12/31/96 $21,258 $23,040
FYE 12/31/97 $23,204 $25,290
FYE 12/31/98 $25,366 $27,685
FYE 12/31/99 $24,620 $27,091
<PAGE>
Appendix to Electronic Format (continued) Page 2 of 6
WRL Series Fund. Inc.
Page 9 (graph 3) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks (S&P) over the
same time frame.
Portfolio S&P Index
Inception 10/2/86 $10,000 $10,000
Period Ended 12/31/86 $10,144 $10,560
FYE 12/31/87 $11,249 $11,110
FYE 12/31/88 $13,344 $12,940
FYE 12/31/89 $19,621 $17,040
FYE 12/31/90 $19,578 $16,511
FYE 12/31/91 $31,284 $21,542
FYE 12/31/92 $32,021 $23,183
FYE 12/31/93 $33,293 $25,519
FYE 12/31/94 $30,527 $25,856
FYE 12/31/95 $44,912 $35,572
FYE 12/31/96 $52,979 $43,740
FYE 12/31/97 $62,274 $58,333
FYE 12/31/98 $102,424 $75,004
FYE 12/31/99 $163,540 $90,786
Page 11 (graph 4) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Morgan
Stanley Capital International World Index (MS) over the same
time frame.
Portfolio MS Index
Inception 12/3/92 $10,000 $10,000
Period Ended 12/31/92 $10,162 $10,008
FYE 12/31/93 $13,724 $12,415
FYE 12/31/94 $13,759 $13,110
FYE 12/31/95 $16,932 $15,900
FYE 12/31/96 $21,628 $18,130
FYE 12/31/97 $25,683 $21,070
FYE 12/31/98 $33,392 $26,198
FYE 12/31/99 $57,134 $32,728
Page 13 (graph 5) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks (S&P) and Lehman
Brothers Government/Corporate Intermediate Bond Index (LB)
over the same time frame.
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
FYE 12/31/99 $24,228 $38,314 $15,226
<PAGE>
Appendix to Electronic Format (continued) Page 3 of 6
WRL Series Fund. Inc.
Page 15 (graph 6) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks (S&P) over the
same time frame.
Portfolio S&P Index
Inception 3/1/93 $10,000 $10,000
FYE 12/31/93 $12,471 $10,770
FYE 12/31/94 $11,553 $10,912
FYE 12/31/95 $16,960 $14,996
FYE 12/31/96 $20,162 $18,459
FYE 12/31/97 $24,488 $24,618
FYE 12/31/98 $33,629 $31,654
FYE 12/31/99 $68,993 $38,314
Page 17 (graph 7) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Value
Line (Arithmetic) Index (VL) and the Standard's and Poor's
Index of 500 Common Stocks (S&P) over the same time frame.
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
FYE 13/31/99 $46,999 $21,954 $35,366
Page 19 (graph 8) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard's and Poor's Index of 500 Common Stocks (S&P) and the
Lehman Brothers Government/Corporate Intermediate Bond Index
(LB) over the same time frame.
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
FYE 13/31/99 $16,130 $35,366 $13,866
Page 21 (graph 9) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the Dow
Jones Utilities Average Index (Dow Util) the Russell 3000
Index, and Russell Midcap Value over the same time frame.
Russell Russell
Portfolio Midcap Value 000 Index
Inception 3/1/94 $10,000 $10,000 $10,000
Period Ended 12/31/94 $9,542 $9,682 $9,872
FYE 12/31/95 $11,952 $13,064 $13,068
FYE 12/31/96 $13,343 $15,711 $15,575
FYE 12/31/97 $16,631 $21,111 $20,165
FYE 12/31/98 $17,139 $22,184 $24,667
FYE 12/31/99 $16,376 $22,160 $29,458
<PAGE>
Appendix to Electronic Format (continued) Page 4 of 6
WRL Series Fund. Inc.
Page 23 (graph 10) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard's and Poor's Index of 500 Common Stocks( S&P) and
the Lehman Brothers Government/Corporate Intermediate Bond
Index (LB) over the same time frame.
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
FYE 12/31/99 $16,375 $35,111 $14,092
Page 25 (graph 11) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Wilshire 5000 Index (Wilshire) over the same time frame.
Portfolio Wilshire Index
Inception 5/1/95 $10,000 $10,000
Period Ended 12/31/95 $12,065 $12,028
FYE 12/31/96 $14,176 $14,294
FYE 12/31/97 $16,306 $18,464
FYE 12/31/98 $16,709 $22,474
FYE 12/31/99 $22,363 $27,429
Page 27 (graph 12) 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
FYE 12/31/99 $14,548 $23,870
Page 29 (graph 13) 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
FYE 12/31/99 $15,158 $14,497 $14,497
<PAGE>
Appendix to Electronic Format (continued) Page 5 of 6
WRL Series Fund. Inc.
Page 31 (graph 14) 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
FYE 12/31/99 $18,479 $20,756
Page 33 (graph 15) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks (S&P) over the
same time frame.
Portfolio S&P Index
Inception 1/2/98 $10,000 $10,000
Period Ended 12/31/98 $9,316 $12,858
FYE 12/31/99 $10,780 $15,563
Page 35 (graph 16) 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
FYE 12/31/99 $8,186 $8,232
Page 37 (graph 17) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Standard & Poor's Index of 500 Common Stocks (S&P) over the
same time frame.
Portfolio S&P Index
Inception 5/3/99 $10,000 $10,000
FYE 12/31/99 $11,750 $11,100
Page 39 (graph 18) 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
FYE 12/31/99 $11,782 $11,662
<PAGE>
Appendix to Electronic Format (continued) Page 6 of 6
WRL Series Fund. Inc.
Page 41 (graph 19) 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
FYE 12/31/99 $9,260 $11,100
Page 43 (graph 20) 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
FYE 12/31/99 $13,849 $11,662
Page 45 (graph 21) 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
FYE 12/31/99 $11,557 $11,088
Page 47 (graph 22) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the
Russell Midcap Growth Index over the same time frame.
Russell Mid
Portfolio Cap Growth
Inception 5/3/99 $10,000 $10,000
FYE 12/31/99 $17,800 $13,992
Page 49 (graph 23) Mountain graph depicting the change in value of a $10,000
investment in the portfolio since inception versus the S&P
MidCap 400 Index over the same time frame.
S&P 400
Portfolio Mid Cap Index
Inception 5/3/99 $10,000 $10,000
FYE 12/31/99 $10,720 $11,269
