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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NE 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SEPTEMBER 30, 1996 -- SEMI-ANNUAL REPORT
October 2, 1996
Dear Shareholder:
Short-term interest rates moved modestly higher in the third quarter in the
wake of continued strength in the economy. The hotly debated question was
whether or not this growth would result in an outbreak of inflation and force
the Federal Reserve to raise short-term interest rates. Once again the Federal
Reserve opted to leave the federal funds rate (the rate charged for overnight
loans between banks) unchanged and await further evidence regarding the economy.
Given that the Consumer Price Index, an inflation surrogate, is running at a
3.2% rate through eight months of 1996 versus 2.5% for all of 1995, the Fed's
course of action may prove to be the correct one.
Our strategy is to invest in liquid short-term Government securities that
have a weighted average maturity of less than 90 days. Rates on these
instruments will continue to be affected by near-term monetary policy. Thus, we
expect that the fund's yield will closely track Treasury bill rates. As of
quarter end, our 7-day and 30-day yields were 4.8% and 4.7%, respectively.
Best Regards,
/s/ Wallace R. Weitz /s/ Thomas Carney
Wallace R. Weitz Thomas Carney
President, Portfolio Manager Portfolio Manager
- --------------------------------------------------------------------------------
Yields quoted are historical and will fluctuate in the future. An investment in
the Government Money Market Portfolio is neither insured, nor guaranteed by the
U.S. Government and there can be no assurance that it will maintain a steady net
asset value of $1.00.
- --------------------------------------------------------------------------------
2
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT DESCRIPTION VALUE
------ ----------- -----
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES - 99.2%
$3,550,000 U.S. Treasury Bill 5.234% 10/03/96* $3,548,997
1,500,000 Federal Home Loan Bank Discount Note 5.472% 12/19/96* 1,482,521
----------
Total U.S. Government and Agency Securities 5,031,518
----------
SHORT-TERM SECURITIES - 1.2%
62,272 Norwest Treasury Money Market Fund, 4.8% 62,272
----------
Total Investments in Securities 5,093,790
----------
Other Liabilities in Excess of Other Assets - (0.4%) (19,159)
----------
Total Net Assets - 100.0% $5,074,631
----------
----------
</TABLE>
*Interest rates presented for treasury bills and discount notes are based upon
yield to maturity rate(s) at date(s) of purchase.
See accompanying notes to financial statements.
3
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
(UNAUDITED)
Assets:
Investments in securities at amortized cost,
which approximates value $5,093,790
Prepaid expense 1,122
Interest receivable 257
----------
Total assets 5,095,169
----------
Liabilities:
Due to adviser 1,057
Distributions payable 19,481
----------
Total liabilities 20,538
----------
Net assets applicable to outstanding capital stock $5,074,631
----------
----------
Net assets represented by:
Capital stock outstanding, at par (note 4) 5,075
Additional paid-in capital 5,069,556
----------
Total representing net assets applicable
to shares outstanding $5,074,631
----------
----------
Net asset value per share of outstanding capital stock $ 1.000
-------
-------
See accompanying notes to financial statements.
4
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
Investment income:
Interest $ 120,151
----------
Total investment income 120,151
----------
Expenses (note 3):
Investment advisory fee $ 11,582
Administrative fee 5,791
Audit fees 4,405
Registration expenses 1,837
Bank custodial fees 1,062
Printing expenses 987
---------
Total Expenses 25,664
Less advisory and administrative fees waived and other
expenses assumed by investment adviser (14,082)
----------
Net expenses 11,582
----------
Net investment income and net increase
in net assets resulting from operations $ 108,569
----------
----------
See accompanying notes to financial statements.
5
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1996 YEAR ENDED
(UNAUDITED) MARCH 31, 1996
------------------ --------------
<S> <C> <C>
Net increase in net assets resulting from operations $ 108,569 $ 179,605
Distributions to shareholders from:
Net investment income (108,569) (179,605)
Capital share transactions, at $1.00 per share (note 4):
Proceeds from sales 8,042,621 11,203,040
Payments for redemptions (7,213,563) (9,905,860)
Reinvestment of distributions 103,971 175,488
----------- -----------
Total increase from capital share transactions 933,029 1,472,668
----------- -----------
Total increase in net assets 933,029 1,472,668
----------- -----------
Net assets:
Beginning of period 4,141,602 2,668,934
----------- -----------
End of period $ 5,074,631 $ 4,141,602
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to financial statements.
6
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Government Money Market Portfolio outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31, PERIOD AUGUST 1, 1991
SEPTEMBER 30, 1996 ---------------------------------------------- (INCEPTION) TO
(UNAUDITED) 1996# 1995# 1994# 1993# MARCH 31, 1992#
------------------ ---------- ---------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.023 0.051 0.042 0.028 0.031 0.031
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.023) (0.051) (0.042) (0.028) (0.031) (0.031)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL RETURN 4.7%* 5.2% 4.2% 2.9% 3.2% 4.7%*
RATIOS/SUPPLEMENTAL DATA:
Net assets, End of period $5,074,631 $4,141,602 $2,668,933 $1,918,127 $555,050 $277,582
Ratio of expenses to average net assets+ 0.50%* 0.50% 0.50% 0.25% 0.26% 0.27%*
Ratio of net investment income to
average net assets 4.67%* 4.95% 4.18% 2.81% 3.05% 4.65%*
</TABLE>
* Annualized
+ Absent voluntary waivers, the expense ratio would have been 1.14% for the
year ended March 31, 1996 and 1.10% (annualized) for the six months ended
September 30, 1996.
# The per share amounts and total return figures have been restated from the
1996 annual report to shareholders to reflect the correction of a
computational error.
See accompanying notes to financial statements.
7
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(UNAUDITED)
(1) ORGANIZATION
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 September 30, 1996, the Fund
had four series in operation: the Government Money Market Portfolio, the
Fixed Income Portfolio, the Value Portfolio and the Hickory Portfolio. The
accompanying financial statements present the financial position and
results of operations of the Government Money Market Portfolio (the
"Portfolio").
The Portfolio's investment objective is current income consistent with the
preservation of capital and maintenance of liquidity. The Portfolio
intends to invest principally in debt obligations issued or guaranteed by
the U.S. Government, its agencies and instrumentalities and repurchase
agreements thereon with maturities not exceeding one year. 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 amortized cost, which
approximates market value. Pursuant to Rule 2a-7 of the Investment
Company Act of 1940, amortized cost, as defined, is a method of
valuing securities at acquisition cost, adjusted for amortization of
premium or accretion of discount rather than at their value based on
current market factors. This method of valuation is used consistently
throughout the industry by money market funds wishing to maintain a
constant net asset value per share. The Portfolio maintains a
constant net asset value of $1 per share.
(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.
(c) SECURITY TRANSACTIONS
Security transactions are accounted for on the date securities are
purchased or sold (trade date). Realized gains or losses are
determined by specifically identifying the issue sold.
8
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In computing net investment income, the Portfolio amortizes premiums
and discounts and accrues interest income daily.
Dividends to shareholders are declared daily and paid monthly in
shares or cash.
(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 a 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 exceed 1% of the Portfolio's average annual
daily net asset value. For the six months ended September 30, 1996, the
Adviser received a management fee equal to 1/4% per annum of the
Portfolio's average daily net asset value.
Under the terms of an administration 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 six months ended September
30, 1996, the fee was calculated at an average annual rate of .25% of the
Portfolio's average daily net assets, of which .25% was waived.
Weitz Securities, Inc., as distributor, received no compensation for the
distribution of Fund shares.
The Fund pays directors (other than directors who are also officers of the
Adviser) an annual retainer of $2,000 and fees of $800 per board meeting
attended and $200 per audit committee meeting attended, which are allocated
to the various portfolios. During the six months ended September 30, 1996,
the Government Money Market Portfolio paid directors' fees of $211.
(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. Thirty million of
these shares have been authorized by the Board of Directors to be issued in
the series designated Government Money Market Portfolio shares, of which
5,074,631 shares were outstanding at September 30, 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.
9
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WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
Delmer L. Toebben
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.-Government Money Market 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.
