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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
ANNUAL REPORT
MARCH 31, 1997
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
MARCH 31, 1997 -- ANNUAL REPORT
April 9, 1997
Dear Shareholder:
The yield on our Government Money Market Portfolio increased moderately
since the last time we reported to you. As of March 31, our 7-day and 30-day
yields were 4.8% and 4.7%, respectively.
The principal reason for this increase was a decision by the Federal
Reserve to tighten monetary policy by raising short-term interest rates by 1/4
of one percent on March 25 in an apparent preemptive strike against inflation.
This was the first move by the Federal Open Market Committee to increase the
federal funds rate in over two years. The fed funds rate, used by banks as a
benchmark in lending to each other, has a significant impact on the short-term
Government securities in which our fund invests.
While we would not rule out the possibility of further tightening moves by
the Fed, we do not expect to see a repeat of 1994 when the federal funds rate
was increased 7 times over the course of a year from 3% to 6%. In fact, by
taking decisive, early action before inflation is able to root itself in the
system, the Fed may be positioning the economy for a continuation of our stable-
growth, low-inflation environment which would have positive long-term
implications for both stock and bond investors.
We would welcome any questions or comments you may have.
Best Regards,
/s/ Wallace Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
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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
United States Government and there can be no assurance that it will maintain a
steady net asset value of $1.00.
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 1997
FACE
AMOUNT DESCRIPTION VALUE
U.S. GOVERNMENT AND AGENCY SECURITIES - 99.5%*
$2,830,000 U.S. Treasury Bill 5.187% 4/17/97 $2,823,681
3,000,000 Federal Home Loan Bank Discount Note 5.405% 6/12/97 2,968,440
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Total U.S. Government and Agency Securities 5,792,121
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SHORT-TERM SECURITIES - 0.9%
52,083 Norwest Treasury Money Market Fund, 4.8% 52,083
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Total Investments in Securities (Cost $5,844,204)+ 5,844,204
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Other Liabilities in Excess of Other Assets - (0.4%) (24,266)
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Total Net Assets - 100.0% $5,819,938
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*Interest rates presented for treasury bills and discount notes are based upon
yield to maturity rate(s) at date(s) of purchase.
+Cost is the same for Federal income tax purposes.
See accompanying notes to financial statements.
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997
Assets:
Investments in securities at amortized cost,
which approximates value $5,844,204
Interest receivable 356
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Total assets 5,844,560
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Liabilities:
Accrued expense 135
Due to adviser 1,258
Distributions payable 23,229
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Total liabilities 24,622
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Net assets applicable to outstanding capital stock $5,819,938
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Net assets represented by:
Capital stock outstanding, at par (note 4) 5,820
Additional paid-in capital 5,814,118
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Net assets $5,819,938
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Net asset value and redemption price per share of outstanding
capital stock $ 1.000
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See accompanying notes to financial statements.
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1997
Investment income:
Interest $ 275,496
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Total investment income 275,496
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Expenses (note 3):
Investment advisory fee $ 26,351
Administrative fee 13,175
Registration expenses 7,639
Professional fees 6,344
Printing expenses 2,582
Bank custodial fees 2,516
Directors fees 477
Other expenses 1,618
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Total expenses 60,702
Less advisory and administrative fees waived and other
expenses assumed by investment adviser (34,351)
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Net expenses 26,351
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Net investment income and net increase
in net assets resulting from operations $ 249,145
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See accompanying notes to financial statements.
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
1997 1996
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Net increase in net assets
resulting from operations $ 249,145 $ 179,605
Distributions to shareholders from:
Net investment income (249,145) (179,605)
Capital share transactions,
at $1.00 per share (note 4):
Proceeds from sales 14,177,677 11,203,040
Payments for redemptions (12,740,140) (9,905,860)
Reinvestment of distributions 240,799 175,488
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Total increase from capital share transactions 1,678,336 1,472,668
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Total increase in net assets 1,678,336 1,472,668
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Net assets:
Beginning of period 4,141,602 2,668,934
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End of period $ 5,819,938 $ 4,141,602
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See accompanying notes to financial statements.
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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>
PERIOD
YEAR ENDED MARCH 31, AUGUST 1, 1991
----------------------------------------------------------------------- (INCEPTION) TO
1997 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 0.047 0.051 0.042 0.028 0.031 0.031
----------- ----------- ----------- ------------ ----------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.047) (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 4.8% 5.2% 4.2% 2.9% 3.2% 4.7%*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $5,820 $4,142 $2,669 $1,918 $555 $278
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 4.71% 4.95% 4.18% 2.81% 3.05% 4.65%*
</TABLE>
* Annualized
+ Absent voluntary waivers, the expense ratio would have been 1.15% for the
year ended March 31, 1997 and 1.14% for the year ended March 31, 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.
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
(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 March 31, 1997, 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.
(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 security sold.
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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.
(d) 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 liablilities
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 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 year ended March 31, 1997, 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 year ended March 31, 1997,
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 Portfolio shares.
(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
5,819,938 shares were outstanding at March 31, 1997. 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 series.
9
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INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders
Weitz Series Fund, Inc. -- Government Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities of
Weitz Series Fund, Inc. -- Government Money Market Portfolio, including the
schedule of investments in securities, as of March 31, 1997, and the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the year then ended. These financial statements and
financial highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended March 31, 1996, and the financial highlights for all years
prior to April 1, 1996, were audited by other auditors whose report, dated April
17, 1996, expressed an unqualified opinion on those statements.
We conducted our audit 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, 1997, by correspondence with the custodian. 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 audit provides 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. -- Government Money Market Portfolio as of March 31,
1997, the results of its operations, changes in its net assets, and financial
highlights for the year then ended in conformity with generally accepted
accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
April 18, 1997
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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. For more detailed
information about the Fund, its investment objectives, management, fees and
expenses, please see a current prospectus. This report is not authorized for
distribution to prospective investors unless preceded or accompanied by a
current prospectus.
