<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
FIXED INCOME PORTFOLIO
A N N U A L
R E P O R T
MARCH 31, 1996
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NEBRASKA 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
<PAGE>
<PAGE>
WEITZ SERIES FUND INC. -- FIXED INCOME PORTFOLIO
PERFORMANCE SINCE INCEPTION
A long-term perspective on our fund's performance is shown below. The table
shows how an investment of $10,000 in the Fixed Income Portfolio at its
inception would have grown over the years (after deducting all fees and expenses
and assuming reinvestment of all dividends). The table also sets forth average
annual total return data for the Fixed Income Portfolio for the one and five
year periods ended March 31, 1996, and for the period since inception,
calculated in accordance with SEC standardized formulas.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL ANNUAL
$10,000 CAPITAL GAIN REINVESTED VALUE OF RATE OF
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES RETURN
- ------------------- ----------- ------------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
Dec. 23, 1988 $ 10,000 -- -- $ 10,000 --
Dec. 31, 1988 9,939 -- 68 10,007 --
Dec. 31, 1989 10,020 -- 900 10,920 9.1%
Dec. 31, 1990 10,232 12 1,661 11,905 9.0
Dec. 31, 1991 10,625 13 2,597 13,235 11.4
Dec. 31, 1992 10,557 13 3,396 13,966 5.5
Dec. 31, 1993 10,820 14 4,258 15,092 8.1
Dec. 31, 1994 9,961 13 4,763 14,737 -2.4
Dec. 31, 1995 10,847 14 6,199 17,060 15.8
Mar. 31, 1996 (3
Mos.) 10,747 14 6,142 16,903 -0.9
</TABLE>
The Portfolio's average annual total return for the one and five year periods
ended March 31, 1996, and for the period since inception (December 23, 1988),
were 9.2%, 6.8% and 7.5%, respectively. These returns assume redemption at the
end of each period.
Since inception, the total amount of capital gains distributions reinvested in
shares was $13, and the total amount of "income" distributions reinvested was
$5,955. This information represents past performance of the Portfolio and is not
indicative of future performance. The investment return and the principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than the original cost. Additional information is
available from Wallace R. Weitz & Co. at the address listed on the front cover.
1
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
MARCH 31, 1996 - ANNUAL REPORT
April 5, 1996
Dear Fellow Shareholder:
The Fixed Income Portfolio's total return for the first quarter of 1996
was -0.9%, which consisted of +1.5% from net interest income (after deducting
fees and expenses) and -2.4% from (unrealized) depreciation of our bonds.
MARKET REVIEW
The optimism with which bond investors viewed the interest-rate
environment at the end of 1995 quickly faded in the 1st quarter with reports of
potentially stronger growth in the U.S. economy. The concern was that stronger
than expected growth would lead to higher inflation, which erodes the value of
fixed income investments. For example, February's surprising surge in job
creation as reported by the Labor Department, caused a one-day decline of 3.3%
on the benchmark 30-year Treasury bond, its second largest one-day slide ever.
Bond market speculation appears to have accentuated the decline in bond
prices. Hedge funds and others borrowed funds in the Japanese markets (at
interest rates under 1%) and bought U.S. government securities with yields
around 5% to take advantage of the discrepancy in rates. This strategy is
vulnerable to any combination of higher Japanese rates, lower U.S. rates, or a
weakening of the dollar relative to the yen. This trade went against the
speculators in the first quarter, leading to heavy selling of U.S. bonds, and
thus, lower bond prices and higher interest rates. The "growth scare," as some
have called it, compounded by forced selling by speculators, resulted in a first
quarter drop of 8.4% in the value of long-term U.S. Treasury bonds and a decline
in the average bond fund of 1.2%.
We try not to get caught up in the day to day flurry of economic
statistics as we manage fixed income portfolios. We have a general sense of
where we are in the economic cycle, but we do not take any extreme positions
that depend on making a correct interest rate prediction. At this time, the
economy does not appear to be overheating, inflation has remained subdued, and
the Federal Reserve (which lowered short-term interest rates in January) does
not appear poised to reverse its accommodative stance, so we remain mildly
optimistic about the outlook for the bond market.
PORTFOLIO REVIEW
Our portfolio was not immune to the recent spike in interest rates.
However, by investing in relatively short-term, high quality bonds, we are
generally able to avoid some of
2
<PAGE>
the volatility of long-term bonds while capturing most of the return available
on those securities. The entire portfolio is listed later in this report, but
the following table gives a capsule summary of the investment profile of our
bonds at March 31:
<TABLE>
<S> <C>
Average Maturity 9.1 years
Average Duration 4.1 years
Average Coupon 6.6%
30-Day SEC Yield at 3-31-96 6.3%
Average Rating AA
</TABLE>
During the quarter, we increased our average maturity by approximately one
year by purchasing Government agency securities with maturities in the 10 year
range. This helped to increase our average quality of the portfolio as well.
WELCOME TO ERIC BALL
Eric joined us in February. His background includes three years as a
securities analyst for a brokerage firm, eight years in research and portfolio
management for an investment counseling firm, and most recently, managing over
$400 million at a bank. Eric will be doing a combination of research and
investment counseling work. He is available to meet with retirement plan
participants and individual shareholders, and I would encourage clients with
investment questions to call him and get acquainted.
ANNUAL MEETING
On Wednesday, May 29, 1996, we will have our annual meeting for
shareholders at the Omaha Marriott. The meeting room will open at 4:00 p.m. for
snacks and drinks, and the business meeting will start at 4:30. This is a great
opportunity to ask questions about your investment and to meet the members of
our staff that you have been talking to on the phone. If you plan to join us for
the meeting, please let Mary Bickels know so we can plan for the right number of
people.
If you have any questions about this letter or about our portfolio, please
feel free to call either of us any time.
Best regards,
/s/ WALLACE R. WEITZ /s/ THOMAS CARNEY
Wallace R. Weitz Thomas Carney
President, Portfolio Manager Portfolio Manager
3
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 1996
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST MARKET VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- 31.8%
AA- $ 500,000 Norwest Financial Corp. Notes 7.1% 11/15/96 $ 500,000 $ 503,930
A 500,000 Lehman Brothers Holdings Notes 7.625% 7/15/99 500,261 513,059
BBB 500,000 Salomon, Inc. Sr. Notes 7.125% 8/1/99 500,000 498,691
A 500,000 Phillip Morris Notes 7.125% 8/15/02 500,000 502,345
BBB- 500,000 Tenneco, Inc. Notes 7.875% 10/1/02 497,908 523,312
A+ 1,000,000 Merrill Lynch Notes 7.25% 6/14/04 997,271 1,009,169
BBB- 1,000,000 ConAgra, Inc. Sub. Notes 7.4% 9/15/04 1,000,000 1,020,669
A- 600,000 General Motors Acceptance Corp. Debs. 6.625%
10/15/05 596,811 582,897
BB 200,000 Dime Savings 10.5% 11/15/05 218,211 219,000
AAA 1,000 Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18 1,063 1,059
----------- ------------
Total Corporate Bonds 5,311,525 5,374,131
----------- ------------
MORTGAGE-BACKED SECURITIES -- 15.8%
AAA 80,377 Federal Home Loan Mtg. REMIC Planned Amortization
Class 9% 11/15/19 (Avg. Life 1.0 years) 80,377 80,377
AAA 71,250 Federal Natl. Mtg Assn. 11% 1/1/01
(Avg. Life 1.8 years) 72,692 72,319
AAA 111,985 Federal Home Loan Mtg. Corp. 9.5% 9/1/03
(Avg. Life 2.7 years) 112,261 116,185
AAA 1,000,000 Federal Home Loan Mtg. REMIC Planned Amortization
Class 5.8% 4/15/05 (Avg. Life 3.2 years) 989,445 980,312
AAA 500,000 Federal Natl. Mtg. Assn. REMIC Planned
Amortization
Class 6.5% 10/25/18 (Avg. Life 7.6 years) 484,750 468,281
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 6.65% 9/15/21 (Avg. Life 8.3
yrs) 489,725 469,062
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 7/15/21 (Avg. Life 12.3
yrs) 495,018 477,344
----------- ------------
Total Mortgage-Backed Securities 2,724,268 2,663,880
----------- ------------
TAXABLE MUNICIPAL BONDS -- 5.3%
AA+ 155,000 Missouri Hsg. Dev. Comm. 8.6% 9/1/05 156,092 155,775
AAA 250,000 Oklahoma Hsg. Fin. Auth. 8.7% 9/1/13 250,000 251,250
AAA 500,000 Oklahoma Hsg. Fin. Auth. 7.3% 12/1/14 500,000 494,400
----------- ------------
Total Taxable Municipal Bonds 906,092 901,425
----------- ------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST MARKET VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 44.8%
AAA $ 88,395 U.S. Treasury Zero Coupon Receipts 5.037% 5/15/96* $ 87,871 $ 87,633
AAA 1,000,000 U.S. Treasury Bill 4.935% 5/16/96* 994,000 993,267
AAA 100,125 U.S. Treasury Zero Coupon Receipts 5.329% 2/15/97* 95,604 95,284
AAA 100,100 U.S. Treasury Zero Coupon Receipts 5.760% 2/15/98* 90,168 89,371
AAA 99,960 U.S. Treasury Zero Coupon Receipts 5.916% 2/15/99* 84,593 83,696
AAA 250,000 Federal Natl. Mtg. Assn. 6.625% 7/12/00 250,000 249,453
AAA 2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,497,909 2,527,344
AAA 500,000 Federal Natl. Mtg. Assn. 8.05% 7/14/04 508,325 508,516
AAA 1,000,000 Federal Home Loan Mtg. Corp. 7.09% 6/1/05 1,003,097 1,002,355
AAA 500,000 Federal Home Loan Bank 6.44% 11/28/05 500,760 492,188
AAA 1,000,000 Federal Natl. Mtg. Assn. 6.64% 2/02/06 1,000,000 967,017
AAA 500,000 Federal Home Loan Mtg. Corp. 6.407% 2/22/06 496,298 481,743
----------- ------------
Total U.S. Government and Agency Securities 7,608,625 7,577,867
----------- ------------
SHORT-TERM SECURITIES -- 0.9%
147,656 Norwest U.S. Government Money Market Fund, 4.8% 147,656 147,656
----------- ------------
Total Investments in Securities $16,698,166** 16,664,959
----------- ------------
-----------
Other Assets Less Liabilities -- 1.4% 236,415
------------
Total Net Assets -- 100% $16,901,374
------------
------------
Net Asset Value Per Share $ 10.900
------------
------------
</TABLE>
*Interest rates presented for zero coupon bonds and treasury bills are based
upon yield to maturity rate(s) at date(s) of purchase
**Also approximates cost for federal income tax purposes
See accompanying notes to financial statements.
5
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996
<TABLE>
<S> <C>
Assets:
Investment in securities at market (cost $16,698,166) $ 16,664,959
Accrued interest 248,747
------------
Total assets 16,913,706
------------
Liabilities:
Accrued expenses, including amount due adviser (note 3) 12,332
------------
Net assets applicable to outstanding capital stock $ 16,901,374
------------
------------
Net assets represented by:
Capital stock outstanding, at par (notes 3 & 4) 1,551
Additional paid-in capital 17,129,537
Accumulated undistributed net investment income 248,700
Accumulated undistributed net realized loss (445,207)
Net unrealized depreciation of investments (note 5) (33,207)
------------
Total representing net assets applicable to shares outstanding $ 16,901,374
------------
------------
Net asset value per share of outstanding capital stock (1,550,550 shares
outstanding) $ 10.900
------------
------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1996
<TABLE>
<S> <C>
Investment income:
Interest $ 990,079
-----------
Expenses (note 3):
Investment advisory fee 71,277
Administrative fee 35,532
Other expenses 28,317
Less administrative fee and other expenses waived by investment adviser (28,211)
-----------
Total expenses 106,915
-----------
Net investment income 883,164
-----------
Realized and unrealized gain on investments (note 5):
Realized gain on investments 20,379
Net increase in unrealized appreciation of investments 229,011
-----------
Net realized and unrealized gain on investments 249,390
-----------
Net increase in net assets resulting from operations $ 1,132,554
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MARCH 31, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
----------------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income $ 883,164 $ 1,086,087
Net realized gain (loss) 20,379 (373,492)
Unrealized appreciation (depreciation) 229,011 (249,351)
----------------- --------------
Net increase in net assets resulting from operations 1,132,554 463,244
----------------- --------------
Distributions to shareholders from:
Net investment income 835,268 1,125,700
Net realized gain -- --
----------------- --------------
Total distributions 835,268 1,125,700
----------------- --------------
Capital share transactions (note 4):
Proceeds from sales 8,446,107 2,550,443
Payments for redemptions (4,445,863) (11,712,945)
Reinvestment of net investment income and net realized gain at net
asset value 780,100 1,088,919
----------------- --------------
Total increase (decrease) from capital share transactions 4,780,344 (8,073,583)
----------------- --------------
Total increase (decrease) in net assets 5,077,630 (8,736,039)
----------------- --------------
Net assets:
Beginning of period 11,823,744 20,559,783
----------------- --------------
End of period (including undistributed net investment income of $248,700
in 1996 and $200,805 in 1995) $ 16,901,374 $ 11,823,744
----------------- --------------
----------------- --------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Fixed Income Portfolio outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
------------- ----------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 10.608 $ 10.778 $ 11.105 $ 10.781 $ 10.644 $ 10.296 $ 10.236
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.645 0.667 0.551 0.615 0.720 0.613 0.874
Net gains or losses on
securities (realized and
unrealized) 0.312 (0.224) (0.290) 0.360 0.149 0.417 0.002
------------- ----------- ----------- ----------- ----------- ---------- ----------
Total from investment operations 0.957 0.443 0.261 0.975 0.869 1.030 0.876
LESS DISTRIBUTIONS:
Dividends (from net investment
income) (0.665) (0.613) (0.588) (0.651) (0.731) (0.671) (0.816)
Distributions (from capital
gains) -- -- -- -- (0.001) (0.011) --
------------- ----------- ----------- ----------- ----------- ---------- ----------
Total distributions (0.665) (0.613) (0.588) (0.651) (0.732) (0.682) (0.816)
------------- ----------- ----------- ----------- ----------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 10.900 $ 10.608 $ 10.778 $ 11.105 $ 10.781 $ 10.644 $ 10.296
------------- ----------- ----------- ----------- ----------- ---------- ----------
------------- ----------- ----------- ----------- ----------- ---------- ----------
TOTAL RETURN 9.2% 4.4% 2.3% 9.4% 8.6% 10.4% 8.9%
RATIOS/SUPPLEMENTAL DATA:
Net assets, End of period $16,901,374 $11,823,744 $20,559,783 $19,655,058 $11,691,070 $6,260,787 $1,418,604
Ratio of net expenses to average
net assets 0.75%** 0.75% 0.75% 0.76% 0.72% 0.73% 0.62%
Ratio of net investment income to
average net assets 6.18% 6.16% 4.94% 6.22% 7.50% 8.45% 8.22%
Portfolio turnover rate 28% 49% 12% 15% 31% 8% 30%
<CAPTION>
DEC. 23, 1988
(INCEPTION) TO
MARCH 31, 1989
--------------
<S> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 10.142
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.210
Net gains or losses on
securities (realized and
unrealized) (0.047)
--------------
Total from investment operations 0.163
LESS DISTRIBUTIONS:
Dividends (from net investment
income) (0.069)
Distributions (from capital
gains) --
--------------
Total distributions (0.069)
--------------
NET ASSET VALUE, END OF PERIOD $ 10.236
--------------
--------------
TOTAL RETURN 1.6%
RATIOS/SUPPLEMENTAL DATA:
Net assets, End of period $1,316,152
Ratio of net expenses to average
net assets 1.00%*
Ratio of net investment income to
average net assets 9.32%*
Portfolio turnover rate 0%
</TABLE>
*Annualized for periods of less than twelve months.
**Absent voluntary waivers, the expense ratio would have been 0.95%.
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(1) ORGANIZATION AND BUSINESS CHANGES
Weitz Series Fund, Inc. (The "Fund"), is registered under the Investment
Company Act of 1940 as an open-end management investment company issuing
shares in series, each series representing a distinct portfolio with its own
investment objectives and policies. At March 31, 1996, the Fund had four
series in operation: the Fixed Income Portfolio, the Value Portfolio, the
Government Money Market Portfolio, and the Hickory Portfolio. The
accompanying financial statements present the financial position and results
of operations of the Fixed Income Portfolio (the "Portfolio").
The Portfolio's investment objective is high current income consistent with
preservation of capital. The following significant accounting policies are
in accordance with accounting policies generally accepted in the investment
company industry.
(2) SIGNIFICANT ACCOUNTING POLICIES
(a) VALUATION OF INVESTMENTS
Investment securities are carried at market determined using the
following valuation methods:
- Securities traded on a national or regional securities exchange are
valued at the last quoted sales price.
- Securities not listed on an exchange or securities in which there
were no reported transactions will be valued at the mean between the
last current closing bid and ask prices.
- Securities or other assets for which reliable recent market
quotations are not readily available will be valued at fair market
value as determined in good faith by or under the direction of the
Company's Board of Directors or a committee of the Board.
All securities are valued in accordance with the above noted policies at
the close of each business day.
(b) FEDERAL INCOME TAXES
Since the Portfolio's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders, no provision for
income or excise taxes is required.
For federal income tax purposes, if not utilized, the undistributed net
realized losses will expire in the amounts and in the years as follows:
$25,694 in 2000; $31,035 in 2001; $35,365 in 2002; $4,254 in 2003 and
$348,510 in 2004.
10
<PAGE>
(c) SECURITY TRANSACTIONS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest, including
amortization of discount and premium, is accrued as earned.
Realized gains or losses are determined by specifically identifying the
issue sold.
(d) DIVIDEND POLICY
The Portfolio will declare and distribute income dividends and capital
gains distributions as may be required to qualify as a regulated
investment company under the Internal Revenue Code. Generally, the
Portfolio pays income dividends on a quarterly basis. All dividends and
distributions will be reinvested automatically unless the shareholder
elects otherwise.
(e) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
(3) RELATED PARTY TRANSACTIONS
The Fund and Portfolio have retained Wallace R. Weitz & Company (the
"Adviser") as their exclusive investment adviser. In addition, the Fund has
an agreement with Weitz Securities, Inc. to act as distributor for the
Portfolio's shares. Certain officers and directors of the Fund are also
officers and directors of the Adviser and Weitz Securities, Inc.
Under the terms of the management and investment advisory agreement, the
Adviser receives a management fee equal to 1/2% per annum of the Portfolio's
average daily net asset value. The Adviser has agreed to reimburse the
Portfolio up to the amount of advisory fees paid to the extent that total
expenses exceeds 1% of the Portfolio's average annual daily net asset value.
At March 31, 1996, the Portfolio had accrued advisory fees of $7,225 which
were classified as accrued expenses.
Under the terms of the administrative services agreement, certain services
are being provided including the transfer of shares, disbursement of
dividends, fund accounting and related administrative services of the Fund
for which the Adviser is being paid a monthly fee. During the year ended
March 31, 1996, the fee was calculated at an average annual rate of .25% of
the Portfolio's average daily net assets, of which .17% was waived.
Weitz Securities, Inc. as distributor, received no compensation for
distribution of Fund shares.
As of March 31, 1996, directors, officers and employees of the Fund, the
Adviser and Weitz Securities, Inc. and their immediate family members held
106,217 shares of capital stock of the Portfolio representing 6.9% of the
Portfolio.
11
<PAGE>
(4) CAPITAL STOCK
The Fund is authorized to issue a total of 100 million shares of common
stock in series with a par value of $.001 per share. Ten million of these
shares have been authorized by the Board of Directors to be issued in the
series designated Fixed Income Portfolio shares, of which 1,550,550 shares
are outstanding at March 31, 1996. The Board of Directors may authorize
additional shares in other series of the Fund's shares without shareholder
approval. Each share of stock will have a pro rata interest in the assets of
the Portfolio to which the stock of that series relates and will have no
interest in the assets of any other portfolio.
Transactions in the capital stock of the Portfolio are summarized as
follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MARCH 31, 1996 MARCH 31, 1995
-------------- --------------
<S> <C> <C>
Transactions in shares:
Shares issued........................................................ 770,638 242,210
Shares redeemed...................................................... (406,925) (1,140,686)
Reinvested dividends................................................. 72,266 105,398
-------------- --------------
Net increase....................................................... 435,979 (793,078)
-------------- --------------
-------------- --------------
</TABLE>
(5) SECURITIES TRANSACTIONS
The aggregate cost and the proceeds from the sales of securities was
approximately $5,555,379 and $5,575,758 for the year ended March 31, 1996.
At March 31, 1996, unrealized appreciation of securities was comprised of
gross unrealized appreciation of $112,631 offset by gross unrealized
depreciation of $145,838.
(6) DIRECTORS' FEES AND EXPENSES
The Fund pays directors (other than directors who are also officers of the
Adviser), a fee of $400 per board meeting attended and $100 per audit
committee meeting attended, which is allocated to the various portfolios.
During the year ended March 31, 1996, the Fixed Income Portfolio paid
directors' fees of $436.
12
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders
Weitz Series Fund, Inc. -- Fixed Income Portfolio:
We have audited the accompanying statement of assets and liabilities of Weitz
Series Fund, Inc. -- Fixed Income Portfolio, including the schedule of
investments in securities, as of March 31, 1996, the related statement of
operations for the year then ended and changes in net assets for each of the
years in the two-year period then ended and financial highlights for each of the
years in the seven-year period then ended and for the period from December 23,
1988 (inception) to March 31, 1989. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1996, by correspondence with custodians and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Weitz
Series Fund, Inc. -- Fixed Income Portfolio as of March 31, 1996, the results of
its operations for the year then ended and the changes in its net assets for
each of the years in the two-year period then ended and financial highlights for
each of the years in the seven-year period then ended and for the period from
December 23, 1988 (inception) to March 31, 1989 in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
April 17, 1996
Omaha, Nebraska
13
<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
Carroll E. Fredrickson
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
Wallace R. Weitz
OFFICERS
Wallace R. Weitz, President
Mary K. Beerling, Vice-President & Secretary
Linda L. Lawson, Vice-President
Richard F. Lawson, Vice-President
INVESTMENT ADVISER
Wallace R. Weitz & Company
DISTRIBUTOR
Weitz Securities, Inc.
CUSTODIAN
Norwest Bank Nebraska, N.A.
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Wallace R. Weitz & Company
This report has been prepared for the information of shareholders of Weitz
Series Fund, Inc. -- Fixed Income Portfolio and is not authorized for
distribution to prospective investors unless preceded or accompanied by a
current prospectus which describes the Fund's objectives, policies and other
information.
