<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
FIXED INCOME PORTFOLIO
ANNUAL
REPORT
MARCH 31, 1997
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NEBRASKA 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
PERFORMANCE SINCE INCEPTION
A long-term perspective on our portfolio'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, 1997, 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
Dec. 31, 1996 10,637 13 7,158 17,808 4.4
Mar. 31, 1997 10,619 13 7,147 17,779 -0.2+
</TABLE>
The portfolio's average annual total return for the one and five year periods
ended March 31, 1997, and for the period since inception (December 23, 1988),
were 5.2%, 6.1% and 7.2%, respectively. These returns assume redemption at the
end of each period and reinvestment of dividends.
Since inception, the total amount of capital gains distributions reinvested in
shares was $13, and the total amount of income distributions reinvested was
$7,031. 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.
+Return is for the three month period 12/31/96 through 3/31/97.
1
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
MARCH 31, 1997 - ANNUAL REPORT
April 9, 1997
Dear Fellow Shareholder:
The Fixed Income Portfolio's total return for the first quarter of 1997
was -.2%, which consisted of +1.6% from net interest income (after deducting
fees and expenses) and -1.8% from (unrealized) depreciation of our bonds. The
table below summarizes total return data for our fund as well as the average
intermediate-term, investment grade fixed income fund. (Returns shown are after
deducting all fees and expenses.)
<TABLE>
<CAPTION>
1 YEAR 5 YEARS
--------- -----------
<S> <C> <C>
Fixed Income Portfolio 5.2% 6.1%
Average Intermediate Investment
Grade Fixed Income Fund* 4.5% 6.6%
</TABLE>
*Source: Lipper Analytical Services
MARKET REVIEW
The first quarter of 1997 resembled that of a year ago. Economic activity
(as measured by employment, consumer spending, housing etc.) exhibited
unexpected signs of strength while inflation remained tame. Interest rates rose
in both periods resulting in flat to slightly negative total returns on bonds.
The difference, however, was in the action by the Federal Reserve Board. The Fed
raised the fed funds rate by 1/4% (versus lowering it in early '96), citing
"persisting strength in demand" which might increase inflationary pressures.
This apparent preemptive strike against inflation was the first move by the Fed
to increase short term rates in over two years, and the market is worried about
further increases, as in 1994.
While we would not rule out the possibility of further tightening, 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%) and bonds suffered their worst
performance in a generation. In fact, by taking decisive, early action, the Fed
may be positioning the economy for a continuation of a stable-growth,
low-inflation environment which would have positive long-term implications for
both stock and bond investors.
2
<PAGE>
We do not think that we (or anyone) can predict the course of interest
rates. However, we do believe that real rates of return (coupon interest rates
minus the expected inflation rate) are much more attractive today (+2.5% to
3.5%) than they were in early 1994 (approximately zero). So long as the
inflation genie remains in the bottle, we remain cautiously optimistic about the
prospects for bonds.
PORTFOLIO REVIEW
The entire portfolio is listed later in this report, but the following
table provides a snap-shot of some of the vital characteristics as of March 31:
<TABLE>
<S> <C>
Average Maturity 7.1 years
Average Duration 4.6 years
Average Coupon 7.0%
30-Day SEC Yield at 3-31-97 6.1%
Average Rating AA
</TABLE>
We continue to find good value in bonds maturing in 5 to 8 years. We have
concentrated our investing in government securities, principally mortgages and
agencies, as we feel they represent better value relative to corporate bonds at
this time.
If you have questions about the portfolio or our strategy, please feel
free to call either of us anytime.
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, 1997
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- 23.1%
A $ 500,000 Lehman Brothers Holdings Notes 7.625% 7/15/99 $ 500,189 $ 506,620
BBB 500,000 Salomon, Inc. Sr. Notes 7.125% 8/01/99 500,000 500,300
A 500,000 Phillip Morris Notes 7.125% 8/15/02 500,000 493,937
BBB 500,000 Tenneco, Inc. Notes 8.075% 10/01/02 498,229 518,420
BB+ 48,000 Homeside, Inc. 11.25% 5/15/03 48,000 53,520
AA- 1,000,000 Merrill Lynch Notes 7.25% 6/14/04 999,541 1,002,679
BBB 1,000,000 ConAgra, Inc. Sub. Notes 7.4% 9/15/04 1,000,000 991,509
A- 600,000 General Motors Acceptance Corp. Debs. 6.625%
10/15/05 597,058 569,852
BB+ 500,000 Dime Savings 10.5% 11/15/05 535,502 537,500
AAA 1,000 Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18 1,053 1,053
----------- ------------
Total Corporate Bonds 5,179,572 5,175,390
----------- ------------
MORTGAGE-BACKED SECURITIES -- 11.4%
AAA 28,374 Federal Home Loan Mtg. REMIC Planned
Amortization Class 9.0% 11/15/19 (Avg. Life 0.2
years) 28,374 28,374
AAA 68,907 Federal Natl. Mtg Assn. 11.0% 1/01/01 (Avg. Life
1.6 years) 70,437 71,664
AAA 81,341 Federal Home Loan Mtg. Corp. 9.5% 9/01/03
(Avg. Life 2.6 years) 81,341 84,391
AAA 500,000 Federal Natl. Mtg. Assn. REMIC Planned
Amortization Class 6.5% 10/25/18 (Avg. Life 6.6
years) 485,425 469,063
AAA 1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 6.75% 12/15/21 (Avg. Life 7.1
years) 991,599 954,063
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 6.65% 9/15/21 (Avg. Life 7.7
years) 490,129 465,781
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 7/15/21 (Avg. Life 11.1
years) 495,215 468,281
----------- ------------
Total Mortgage-Backed Securities 2,642,520 2,541,617
----------- ------------
TAXABLE MUNICIPAL BONDS -- 3.7%
AA+ 95,000 Missouri Hsg. Dev. Comm. 8.6% 9/01/05 95,598 95,475
AAA 250,000 Oklahoma Hsg. Fin. Auth. 8.7% 9/01/13 250,000 251,250
AAA 495,000 Oklahoma Hsg. Fin. Auth. 7.3% 12/01/14 495,000 471,859
----------- ------------
Total Taxable Municipal Bonds 840,598 818,584
----------- ------------
</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 VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 50.1%
AAA 100,100 U.S. Treasury Zero Coupon Receipts 2/15/98 $ 95,282 $ 94,997
AAA 99,960 U.S. Treasury Zero Coupon Receipts 2/15/99 89,335 88,437
AAA 200,000 Federal Home Loan Bank 6.0% 4/12/01 199,892 199,714
AAA 500,000 Federal Home Loan Mtg. Corp. 7.16% 5/16/01 500,405 497,031
AAA 1,000,000 Federal Home Loan Bank 6.77% 3/20/02 1,000,000 987,658
AAA 500,000 Federal Home Loan Bank 6.50% 4/15/04 500,000 497,578
AAA 2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,498,621 2,487,500
AAA 500,000 Federal Natl. Mtg. Assn. 8.05% 7/14/04 501,875 497,812
AAA 100,000 U.S. Treasury Note 8.25% 5/15/05 104,216 103,891
AAA 1,000,000 Federal Home Loan Mtg. Corp. 7.09% 6/01/05 1,002,353 971,599
AAA 1,000,000 Federal Natl. Mtg. Assn. 7.27% 8/24/05 1,001,358 983,437
AAA 500,000 Federal Home Loan Bank 6.44% 11/28/05 500,680 478,437
AAA 1,000,000 Federal Natl. Mtg. Assn. 6.64% 2/02/06 1,000,000 946,258
AAA 500,000 Federal Home Loan Mtg. Corp. 6.407% 2/22/06 496,671 470,795
AAA 1,000,000 Federal Natl. Mtg. Assn. 7.15% 10/11/06 979,020 978,700
AAA 1,000,000 Federal Home Loan Mtg. Corp. 6.77% 3/21/11 923,569 916,250
----------- ------------
Total U.S. Government and Agency
Securities 11,393,277 11,200,094
----------- ------------
SHORT-TERM SECURITIES -- 14.9%
1,357,193 Norwest U.S. Government Money Market Fund 1,357,193 1,357,193
AAA 2,000,000 U.S. Treasury Bill 7/24/97 1,968,302 1,966,458
----------- ------------
Total Short-Term Securities 3,325,495 3,323,651
----------- ------------
Total Investments in Securities $23,381,462 23,059,336
----------- ------------
-----------
Other Liabilities in Excess of Other Assets --
(3.2%) (710,296)
------------
Total Net Assets -- 100% $ 22,349,040
------------
------------
Net Asset Value Per Share $ 10.770
------------
------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $23,381,462) $ 23,059,336
Accrued interest 315,041
------------
Total assets 23,374,377
------------
Liabilities:
Accrued expense 3,279
Due to adviser 9,274
Payable for securities purchased 1,012,784
------------
Total liabilities 1,025,337
------------
Net assets applicable to outstanding capital stock $ 22,349,040
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 2,075
Additional paid-in capital 22,832,626
Accumulated undistributed net investment income 295,955
Accumulated undistributed net realized loss (459,490)
Net unrealized depreciation of investments (note 5) (322,126)
------------
Net assets $ 22,349,040
------------
------------
Net asset value and redemption price per share of outstanding
capital stock (2,075,027 shares outstanding) $ 10.770
------------
------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1997
<TABLE>
<S> <C> <C>
Investment income:
Interest $ 1,221,758
-----------
Expenses (note 3):
Investment advisory fee $ 86,579
Administrative fee 43,290
Directors fees 1,495
Other expenses 29,813
-----------
Total expenses 161,177
Less administrative fee waived by investment adviser (31,308)
-----------
Net expenses 129,869
-----------
Net investment income 1,091,889
-----------
Realized and unrealized loss on investments:
Realized loss on investments (14,283)
Net unrealized depreciation of investments (288,919)
-----------
Net realized and unrealized loss on investments (303,202)
-----------
Net increase in net assets resulting from operations $ 788,687
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1997 1996
-------------- --------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 1,091,889 $ 883,164
Net realized gain (loss) (14,283) 20,379
Net unrealized appreciation (depreciation) (288,919) 229,011
-------------- --------------
Net increase in net assets resulting from operations 788,687 1,132,554
-------------- --------------
Distributions to shareholders from:
Net investment income (1,044,634) (835,268)
Net realized gain -- --
-------------- --------------
Total distributions (1,044,634) (835,268)
-------------- --------------
Capital share transactions (note 4):
Proceeds from sales 11,280,073 8,446,107
Payments for redemptions (6,523,492) (4,445,863)
Reinvestment of distributions 947,032 780,100
-------------- --------------
Total increase from capital share transactions 5,703,613 4,780,344
-------------- --------------
Total increase in net assets 5,447,666 5,077,630
-------------- --------------
Net assets:
Beginning of period 16,901,374 11,823,744
-------------- --------------
End of period $ 22,349,040 $ 16,901,374
-------------- --------------
-------------- --------------
</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,
----------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $10.900 $10.608 $10.778 $11.105 $10.781 $10.644 $10.296
----------- ----------- ----------- ----------- ----------- ----------- ----------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.659 0.645 0.667 0.551 0.615 0.720 0.613
Net gains or losses on
securities (realized and
unrealized) (0.112) 0.312 (0.224) (0.290) 0.360 0.149 0.417
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total from investment
operations 0.547 0.957 0.443 0.261 0.975 0.869 1.030
----------- ----------- ----------- ----------- ----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.677) (0.665) (0.613) (0.588) (0.651) (0.731) (0.671)
Distributions from realized
gains -- -- -- -- -- (0.001) (0.011)
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total distributions (0.677) (0.665) (0.613) (0.588) (0.651) (0.732) (0.682)
----------- ----------- ----------- ----------- ----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD $10.770 $10.900 $10.608 $10.778 $11.105 $10.781 $10.644
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
TOTAL RETURN 5.2% 9.2% 4.4% 2.3% 9.4% 8.6% 10.4%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
($000) $22,349 $16,901 $11,824 $20,560 $19,655 $11,691 $ 6,261
Ratio of net expenses to
average net assets+ 0.75% 0.75% 0.75% 0.75% 0.76% 0.72% 0.73%
Ratio of net investment
income to average net
assets 6.30% 6.18% 6.16% 4.94% 6.22% 7.50% 8.45%
Portfolio turnover rate 24% 28% 49% 12% 15% 31% 8%
<CAPTION>
DEC. 23, 1988
(INCEPTION) TO
1990 MARCH 31, 1989
---------- --------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $10.236 $10.142
---------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.874 0.210
Net gains or losses on
securities (realized and
unrealized) 0.002 (0.047)
---------- -------
Total from investment
operations 0.876 0.163
---------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.816) (0.069)
Distributions from realized
gains -- --
---------- -------
Total distributions (0.816) (0.069)
---------- -------
NET ASSET VALUE, END OF PERIOD $10.296 $10.236
---------- -------
---------- -------
TOTAL RETURN 8.9% 1.6%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
($000) $ 1,419 $ 1,316
Ratio of net expenses to
average net assets+ 0.62% 1.00%*
Ratio of net investment
income to average net
assets 8.22% 9.32%*
Portfolio turnover rate 30% 0%
</TABLE>
*Annualized
+Absent voluntary waivers, the expense ratio would have been 0.93% for the year
ended March 31, 1997 and 0.95% for the year ended March 31, 1996.
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME 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 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.
(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.
Net investment income and net realized gains may differ for financial
statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from
their ultimate characterization for Federal income tax purposes. Also,
due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or
realized gains were recorded by the Portfolio.
10
<PAGE>
(c) SECURITY TRANSACTIONS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Income dividends 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
security 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 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.
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 .18% was waived.
Weitz Securities, Inc. as distributor, received no compensation for
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. Ten million of these
shares have been authorized by the Board of Directors to be issued in the
series designated Fixed Income Portfolio, of which 2,075,027 shares are
outstanding at March 31, 1997. The Board of Directors may authorize
additional shares in
11
<PAGE>
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 series to which
the stock of that series relates and will have no interest in the assets of
any other series.
Transactions in the capital stock of the Portfolio are summarized as
follows:
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1997 1996
----------- -----------
<S> <C> <C>
Transactions in shares:
Shares issued.............................................................. 1,040,794 770,638
Shares redeemed............................................................ (604,489) (406,925)
Reinvested dividends....................................................... 88,172 72,266
----------- -----------
Net increase............................................................. 524,477 435,979
----------- -----------
----------- -----------
</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $8,368,083 and
$3,862,701, respectively. The cost of investments is the same for financial
reporting and Federal income tax purposes. At March 31, 1997, the aggregate
gross unrealized appreciation and depreciation were $44,841 and $366,967,
respectively.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $459,490 available to offset future realized capital gains.
To the extent that such carryforwards are used, no capital gains
distributions will be made. The carryforwards expire as follows: March 31,
2000 -- $25,694, March 31, 2001 -- $31,035, March 31, 2002 -- $35,365, March
31, 2003 -- $4,254, March 31, 2004 -- $348,510, and March 31, 2005 --
$14,632.
12
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders
Weitz Series, Inc. -- Fixed Income Portfolio:
We have audited the accompanying statement of assets and liabilities of
Weitz Series, Inc. -- Fixed Income 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 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 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, Inc. -- Fixed Income 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
13
<PAGE>
- --------------------------------------------------------------------------------
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. -- Fixed Income 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.
