<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
FIXED INCOME PORTFOLIO
GOVERNMENT MONEY MARKET
PORTFOLIO
SEMI-ANNUAL
REPORT
SEPTEMBER 30, 1998
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NEBRASKA 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
FIXED INCOME PORTFOLIO
Period Overview........................................................ 3
Schedule of Investments................................................ 6
Financial Statements................................................... 9
GOVERNMENT MONEY MARKET PORTFOLIO
Period Overview........................................................ 13
Schedule of Investments................................................ 14
Financial Statements................................................... 15
Notes to Financial Statements................................................ 19
</TABLE>
2
<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 September 30, 1998, 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
$10,000 CAPITAL GAIN REINVESTED VALUE OF ANNUAL RATE
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES OF 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
Dec. 31, 1997 10,916 14 8,419 19,349 8.6
Sept. 30, 1998 11,290 14 9,292 20,596 6.4+
</TABLE>
The portfolio's average annual total return for the one and five year periods
ended September 30, 1998, and for the period since inception (December 23,
1988), was 8.9%, 6.4% and 7.7%, 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
$8,662. 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 the Weitz Funds at the address listed on the front cover.
+For the period from 1/1/98 through 9/30/98
3
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SEPTEMBER 30, 1998 - SEMI-ANNUAL REPORT
October 9, 1998
Dear Fellow Shareholder:
The Fixed Income Portfolio's total return for the third quarter of 1998
was 2.8%, which consisted of +1.5% from net interest income (after deducting
fees and expenses) and +1.3% from (unrealized) appreciation 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.
<TABLE>
<CAPTION>
1 YEAR 5 YEARS
------- -------
<S> <C> <C>
Fixed Income Portfolio 8.9% 6.4%
Average Intermediate Investment
Grade Fixed Income Fund* 10.0% 6.3%
</TABLE>
*Source: Lipper Analytical Services
OVERVIEW
The stampede into U.S. Treasury and other "safe" securities continued in
the third quarter with yields for Treasuries falling to 30 year lows. Global
financial instability, capital market crises, and recession fears (or even
possibly deflation) contributed to this "flight to quality". Most other sectors
of the fixed income marketplace fared poorly, however, as investors pushed
yields of riskier bonds higher to compensate for the perception of rising credit
and liquidity risk.
Our portfolio fared well during the quarter and we remain optimistic about
the future. The interest payments on our bonds produced a predictable income
stream and our attention to quality provided price appreciation as interest
rates declined. We remain focused on managing a high-quality portfolio while
avoiding any investment whose success hinges on a correct interest rate
forecast. This may lead us to slightly underperform during periods of sharply
declining interest rates, as has been the case so far during 1998. But by
knowing that bonds are simply IOU's with fixed interest payments and the return
of principal at maturity, we will remain focused on the quality of the
"borrower" we are lending to versus the compensation (i.e. the interest rate) we
receive in exchange. Our recent interest in government
4
<PAGE>
securities as opposed to corporate and high yield securities has resulted from
our perception of a lack of (adequate) compensation for the inherent risks
involved in such securities. We are constantly looking for opportunities to own
fixed income securities with favorable risk/reward characteristics. We feel this
focus on quality and appropriate compensation will allow us to avoid many of the
pitfalls present in the bond market this year.
The following table shows some of the vital characteristics of our
portfolio as of September 30:
<TABLE>
<S> <C>
Average Maturity 6.3 years
Average Duration 2.8 years
Average Coupon 7.0%
30-Day SEC Yield at 9-30-98 5.5%
Average Rating AA
</TABLE>
We would welcome the opportunity to discuss fixed income investing in more
detail for anyone interested.
Best Regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
5
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- 23.9%
A $ 500,000 Lehman Brothers Holdings Notes 7.625% 7/15/99 $ 500,066 $ 502,422
A 500,000 Salomon, Inc. Sr. Notes 7.125% 8/01/99 500,000 505,482
A 500,000 Phillip Morris Notes 7.125% 8/15/02 500,000 531,486
BBB 500,000 Tenneco, Inc. Notes 8.075% 10/01/02 498,711 550,236
750,000 Superior Financial Corp. Sr. Notes 8.65% 4/01/03 750,000 774,886
A+ 48,000 Homeside, Inc. 11.25% 5/15/03 48,000 56,880
Ba3 500,000 USA Networks, Inc. 7.0% 7/01/03 486,917 500,000
250,000 Local Financial Corp. 11.0% 9/08/04 250,000 256,250
BBB 1,000,000 ConAgra, Inc. Sub. Notes 7.4% 9/15/04 1,000,000 1,090,600
BB- 750,000 Century Communications Sr. Notes 9.5% 3/1/05 805,363 825,000
A 600,000 General Motors Acceptance Corp. Debs. 6.625% 10/15/05 597,462 635,474
BBB- 500,000 Dime Savings 10.5% 11/15/05 522,093 527,500
B+ 500,000 Vanguard Cellular Systems 9.375% 4/15/06 527,426 512,500
BB+ 375,000 CalEnergy Sr. Notes 9.5% 9/15/06 404,214 416,250
BBB+ 500,000 Harcourt General 6.5% 5/15/11 484,965 472,500
AA- 1,000,000 Merrill Lynch 7.15% 7/30/12 1,000,000 1,061,087
AAA 1,000 Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18 1,046 1,063
----------- ------------
Total Corporate Bonds 8,876,263 9,219,616
----------- ------------
MORTGAGE-BACKED SECURITIES -- 21.4%
AAA 18,878 Federal Natl. Mtg Assn. 11.0% 1/01/01
(Avg. Life 1.0 yrs) 19,130 20,271
AAA 46,443 Federal Home Loan Mtg. Corp 9.5% 9/01/03
(Avg. Life 1.8 years) 46,443 49,041
AAA 500,000 Federal Natl. Mtg. Assn. REMIC Planned
Amortization Class 7.5% 4/25/19 (Avg. Life 2.4years) 495,911 515,289
AAA 500,000 Federal Natl. Mtg. Assn. REMIC Planned
Amortization Class 6.5% 10/25/18 (Avg. Life 3.0 years) 486,439 509,980
AAA 1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 8/15/20 (Avg. Life 3.3 years) 1,003,563 1,016,322
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 6.65% 9/15/21 (Avg. Life 3.5 years) 490,737 507,009
AAA 1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 6.75% 12/15/21 (Avg. Life 4.4 years) 992,108 1,015,572
AAA 1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 4/15/21 (Avg. Life 4.8 years) 976,386 1,038,667
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST VALUE
- ------ ---------- ----------- ------------
MORTGAGE-BACKED SECURITIES (CONTINUED)
<S> <C> <C> <C> <C>
AAA $1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 9/15/09 (Avg. Life 5.0 years) $ 1,003,742 $ 1,039,974
AAA 1,000,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 8/15/21 (Avg. Life 5.0 years) 1,019,682 1,039,841
AAA 500,000 Federal Home Loan Mtg. Corp. REMIC Planned
Amortization Class 7.0% 7/15/21 (Avg. Life 5.1 years) 495,511 511,647
AAA 986,553 Federal Natl. Mtg. Assn. 6.5% 6/01/18
(Avg. Life 6.4 years) 985,344 1,007,705
----------- ------------
Total Mortgage-Backed Securities 8,014,996 8,271,318
----------- ------------
TAXABLE MUNICIPAL BONDS -- 3.5%
AAA 325,000 Baltimore Maryland 7.25% 10/15/05 329,387 360,422
AAA 500,000 Stratford Connecticut 6.55% 2/15/13 500,000 524,530
AAA 155,000 Oklahoma Hsg. Fin. Auth. 8.7% 9/01/13 155,000 155,775
AAA 300,000 Oklahoma Hsg. Fin. Auth. 7.3% 12/01/14 300,000 301,500
----------- ------------
Total Taxable Municipal Bonds 1,284,387 1,342,227
----------- ------------
U.S. GOVERNMENT AND
AGENCY SECURITIES -- 44.6%
AAA 99,960 U.S. Treasury Zero Coupon Receipts 2/15/99 96,455 98,277
AAA 2,000,000 Federal Natl. Mtg. Assn. 5.75% 4/15/03 1,993,640 2,084,122
AAA 2,000,000 Federal Home Loan Bank 5.125% 9/15/03 2,000,000 2,032,246
AAA 2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,499,796 2,545,662
AAA 100,000 U.S. Treasury Note 8.25% 5/15/05 103,438 105,938
AAA 1,000,000 Federal Home Loan Mtg. Corp. 7.09% 6/01/05 1,001,235 1,040,008
AAA 1,000,000 Federal Natl. Mtg. Assn. 7.27% 8/24/05 1,000,761 1,047,286
AAA 2,000,000 Federal Home Loan Bank 6.04% 9/08/05 2,000,000 2,047,952
AAA 500,000 Federal Home Loan Bank 6.44% 11/28/05 500,561 544,041
AAA 1,000,000 Federal Natl. Mtg. Assn. 6.64% 2/02/06 1,000,000 1,006,816
AAA 500,000 Federal Home Loan Mtg. Corp. 6.407% 2/22/06 497,230 517,646
AAA 1,000,000 Federal Natl. Mtg. Assn. 7.15% 10/11/06 985,970 1,064,185
AAA 950,000 Federal Natl. Mtg. Assn. 7.44% 11/06/06 950,160 952,770
AAA 1,000,000 Federal Natl. Mtg. Assn. 6.56% 11/26/07 1,000,000 1,061,825
AAA 1,000,000 Federal Natl. Mtg. Assn. 6.50% 3/19/08 992,139 1,042,082
----------- ------------
Total U.S. Government and Agency Securities 16,621,385 17,190,856
----------- ------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
RATING SHARES COST VALUE
- ------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
COMMON STOCKS -- 0.9%
50,000 Hanover Capital Mortgage Holdings, Inc. $ 459,125 $ 343,750
----------- ------------
NON-CONVERTIBLE PREFERRED STOCKS -- 0.6%
Caa 5,000 Crown American Realty Trust 11.0% Pfd. Series A 250,000 247,187
----------- ------------
<CAPTION>
FACE
AMOUNT
----------
<S> <C> <C> <C> <C>
SHORT-TERM SECURITIES -- 3.8%
$1,461,143 Norwest U.S. Government Money Market Fund 1,461,143 1,461,143
----------- ------------
Total Investments in Securities $36,967,299 38,076,097
----------- ------------
-----------
Other Assets Less Liabilities -- 1.3% 501,748
------------
Total Net Assets -- 100% $ 38,577,845
------------
------------
Net Asset Value Per Share $ 11.450
------------
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $36,967,299) $ 38,076,097
Accrued interest and dividends receivable 527,385
------------
Total assets 38,603,482
------------
Liabilities:
Due to adviser 15,758
Other expenses 9,879
------------
Total liabilities 25,637
------------
Net assets applicable to outstanding capital stock $ 38,577,845
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 3,369
Additional paid-in capital 37,297,967
Accumulated undistributed net investment income 550,287
Accumulated net realized (loss) (382,576)
Net unrealized appreciation of investments (note 5) 1,108,798
------------
Net assets $ 38,577,845
------------
------------
Net asset value and redemption price per share of outstanding
capital stock (3,369,101 shares outstanding) $ 11.450
------------
------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<S> <C> <C>
Investment income:
Dividends $ 22,250
Interest 1,150,800
-----------
Total investment income 1,173,050
-----------
Expenses (note 3):
Investment advisory fee $ 86,348
Administrative fee 37,672
Director's fees 390
Other expenses 23,950
-----------
Total expenses 148,360
Less administrative fee waived by investment adviser (18,838)
-----------
Net expenses 129,522
-----------
Net investment income 1,043,528
-----------
Realized and unrealized gain on investments:
Realized gain on investments 17,004
Net unrealized appreciation of investments 538,815
-----------
Net realized and unrealized gain on investments 555,819
-----------
Net increase in net assets resulting from operations $ 1,599,347
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT. 30, 1998 YEAR ENDED
(UNAUDITED) MARCH 31, 1998
----------------- --------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 1,043,528 $ 1,614,327
Net realized gain 17,004 59,909
Net unrealized appreciation 538,815 892,110
----------------- --------------
Net increase in net assets resulting from operations 1,599,347 2,566,346
----------------- --------------
Distributions to shareholders from:
Net investment income (940,799) (1,462,725)
----------------- --------------
Total distributions (940,799) (1,462,725)
----------------- --------------
Capital share transactions (note 4):
Proceeds from sales 12,635,308 12,009,972
Payments for redemptions (5,884,442) (6,457,068)
Reinvestment of distributions 834,004 1,328,862
----------------- --------------
Total increase from capital share transactions 7,584,870 6,881,766
----------------- --------------
Total increase in net assets 8,243,418 7,985,387
----------------- --------------
Net assets:
Beginning of period 30,334,427 22,349,040
----------------- --------------
End of period $ 38,577,845 $ 30,334,427
----------------- --------------
----------------- --------------
</TABLE>
See accompanying notes to financial statements.
11
<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>
SIX MONTHS
ENDED
SEPT. 30, YEAR ENDED MARCH 31,
1998 ---------------------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $11.264 $10.770 $10.900 $10.608 $10.778 $11.105 $10.781 $10.644 $10.296 $10.236
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income 0.321 0.653 0.659 0.645 0.667 0.551 0.615 0.720 0.613 0.874
Net gains or losses on
securities (realized
and unrealized) 0.189 0.470 (0.112) 0.312 0.224 (0.290) 0.360 0.149 0.417 0.002
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations 0.510 1.123 0.547 0.957 0.443 0.261 0.975 0.869 1.030 0.876
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.324) (0.629) (0.677) (0.665) (0.613) (0.588) (0.651) (0.731) (0.671) (0.816)
Distributions from
realized gains -- -- -- -- -- -- -- (0.001) (0.011) --
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.324) (0.629) (0.677) (0.665) (0.613) (0.588) (0.651) (0.732) (0.682) (0.816)
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD $11.450 $11.264 $10.770 $10.900 $10.608 $10.778 $11.105 $10.781 $10.644 $10.296
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL RETURN 4.6% 10.7% 5.2% 9.2% 4.4% 2.3% 9.4% 8.6% 10.4% 8.9%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period ($000) $38,578 $30,334 $22,349 $16,901 $11,824 $20,560 $19,655 $11,691 $6,261 $1,419
Ratio of net expenses to
average net assets+ 0.75%* 0.75% 0.75% 0.75% 0.75% 0.75% 0.76% 0.72% 0.73% 0.62%
Ratio of net investment
income to
average net assets 6.03%* 6.18% 6.30% 6.18% 6.16% 4.94% 6.22% 7.50% 8.45% 8.22%
Portfolio turnover rate 13% 21% 24% 28% 49% 12% 15% 31% 8% 30%
</TABLE>
*Annualized
+Absent voluntary waivers, the expense ratio would have been 0.86% for the six
months ended September 30, 1998 and 0.91%, 0.93% and 0.95% for the years ended
March 31, 1998, 1997 and 1996, respectively.
See accompanying notes to financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SEPTEMBER 30, 1998 - SEMI-ANNUAL REPORT
October 16, 1998
Dear Shareholder:
The yield on our Government Money Market Portfolio closed the quarter with
a 7-day yield of 4.9% and a 30-day yield of 4.7%.
The Federal Reserve lowered short-term interest rates by 1/4% in September
and by another 1/4% this week. Turmoil in Asian and emerging markets, and losses
by American banks, brokers, and large hedge funds, have apparently convinced the
Fed that the correct direction for interest rates, for now, is down. Since the
yield on our fund tracks closely with yields on Treasury bills, we would expect
the yield on the fund to trend downward during the 4TH quarter.
Best regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
13
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATING AMOUNT VALUE
- ------ ---------- -----------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 100.4%*
AAA $ 250,000 U.S. Treasury Bill 5.005% 10/01/98 $ 250,000
AAA 3,500,000 Federal Farm Credit Bank Discount Note 5.483% 10/28/98 3,485,877
AAA 5,500,000 Federal Home Loan Bank Discount Corp. Note 5.436%
12/02/98 5,449,892
AAA 1,000,000 Federal Farm Credit Bank Discount Note 5.539% 1/07/99 985,491
AAA 2,635,000 U.S. Treasury Bill 5.232% 1/07/99 2,599,884
AAA 5,500,000 U.S. Treasury Bill 4.985%1/14/99 5,422,576
-----------
Total U.S. Government and Agency Securities 18,193,720
-----------
SHORT-TERM SECURITIES -- 0.0%
3,824 Norwest Treasury Money Market Fund, 4.429% 3,824
-----------
Total Investments in Securities (Cost
$18,197,544)** 18,197,544
-----------
Other Liabilities in Excess of Other Assets -- (0.4%) (69,201)
-----------
Total Net Assets -- 100% $18,128,343
-----------
-----------
</TABLE>
*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.
14
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities at amortized cost, which approximates value $ 18,197,544
Accrued interest 1,757
------------
Total assets 18,199,301
------------
Liabilities:
Due to adviser 3,656
Distributions payable 65,350
Other expenses 1,952
------------
Total liabilities 70,958
------------
Net assets applicable to outstanding capital stock $ 18,128,343
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 18,128
Additional paid-in capital 18,110,215
------------
Net assets $ 18,128,343
------------
------------
Net asset value and redemption price per share of outstanding
capital stock (18,128,343 shares outstanding) $ 1.000
------------
------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<S> <C> <C>
Investment income:
Interest $ 353,770
-----------
Total investment income 353,770
-----------
Expenses (note 3):
Investment advisory fee $ 32,954
Administrative fee 15,331
Audit fees 6,102
Registration expenses 6,809
Director's fees 141
Other expenses 3,449
-----------
Total expenses 64,786
Less advisory and administrative fees waived and other
expenses assumed by investment adviser (31,832)
-----------
Net expenses 32,954
-----------
Net investment income and net increase
in net assets resulting from operations $ 320,816
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT. 30, 1998 YEAR ENDED
(UNAUDITED) MARCH 31, 1998
----------------- --------------
<S> <C> <C>
Net increase in net assets resulting from operations: $ 320,816 $ 415,115
----------------- --------------
Distributions to shareholders from:
Net investment income (320,816) (415,115)
----------------- --------------
Total distributions (320,816) (415,115)
----------------- --------------
Capital share transactions, at $1.00 per share (note 4):
Proceeds from sales 50,749,526 16,478,253
Payments for redemptions (41,241,019) (14,371,953)
Reinvestment of distributions 289,915 403,683
----------------- --------------
Total increase from capital share transactions 9,798,422 2,509,983
----------------- --------------
Total increase in net assets 9,798,422 2,509,983
----------------- --------------
Net assets:
Beginning of period 8,329,921 5,819,938
----------------- --------------
End of period $ 18,128,343 $ 8,329,921
----------------- --------------
----------------- --------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
WEITZ SERIES FUND, INC. -- GOVERNMENT MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of
the Government Money Portfolio outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS AUG. 1, 1991
ENDED (INCEPTION)
SEPT. 30, YEAR ENDED MARCH 31, TO
1998 --------------------------------------------------------------- MARCH 31,
(UNAUDITED) 1998 1997 1996 1995 1994 1993 1992
----------- -------- -------- -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- -------- -------- -------- -------- -------- -------- ------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.024 0.049 0.047 0.051 0.042 0.028 0.031 0.031
----------- -------- -------- -------- -------- -------- -------- ------------
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.024) (0.049) (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 $ 1.000 $ 1.000
----------- -------- -------- -------- -------- -------- -------- ------------
----------- -------- -------- -------- -------- -------- -------- ------------
TOTAL RETURN 4.9%* 5.1% 4.8% 5.2% 4.2% 2.9% 3.2% 4.7%*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period ($000) $18,128 $8,330 $5,820 $4,142 $2,669 $1,918 $555 $278
Ratio of net expenses to
average net assets+ 0.50%* 0.50% 0.50% 0.50% 0.50% 0.25% 0.26% 0.27%*
Ratio of net investment
income to average net
assets 4.83%* 4.95% 4.71% 4.95% 4.18% 2.81% 3.05% 4.65%*
</TABLE>
*Annualized
+Absent voluntary waivers, the expense ratio would have been 0.98% for the six
months ended September 30, 1998 and 1.12%, 1.15% and 1.14% for the years ended
March 31, 1998, 1997 and 1996, respectively.
See accompanying notes to financial statements.
18
<PAGE>
WEITZ SERIES FUND, INC.
FIXED INCOME PORTFOLIO
GOVERNMENT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(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, 1998, the Fund had four
series in operation: the Fixed Income Portfolio, the Government Money Market
Portfolio, the Value Portfolio, and the Hickory Portfolio. The accompanying
financial statements present the financial position and results of
operations of the Fixed Income and the Government Money Market Portfolios
(the "Portfolios").
The Fixed Income Portfolio's investment objective is high current income
consistent with preservation of capital.
The Government Money Market Portfolio's investment objective is current
income consistent with the preservation of capital and maintenance of
liquidity. The Government Money Market Portfolio invests 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
FIXED INCOME PORTFOLIO
Investment securities are carried at market determined using the
following valuation methods:
- Securities traded on a national or regional securities exchange and
over-the-counter securities traded on the NASDAQ national market
are valued at the last sales price; if there were no sales on that
day, securities are valued at the mean between the latest available
and representative bid and asked prices.
- Securities not listed on an exchange are valued at the mean between
the latest available and representative bid and ask prices.
19
<PAGE>
- The value of certain debt securities for which market quotations
are not readily available may be based upon current market prices
of securities which are comparable in coupon, rating and maturity
or an appropriate matrix utilizing similar factors.
- The value of securities for which market quotations are not readily
available, including restricted and not readily marketable
securities, is determined in good faith under the supervison of the
Fund's Board of Directors.
GOVERNMENT MONEY MARKET PORTFOLIO
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 Portfolios' 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 Fixed Income Portfolio.
(c) SECURITY TRANSACTIONS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Realized gains or losses are determined
by specifically identifying the security sold.
20
<PAGE>
With respect to the Fixed Income Portfolio, income dividends and
distributions to shareholders are recorded on the ex-dividend date.
Interest, including amortization of discount and premium, is accrued as
earned. With respect to the Government Money Market Portfolio, in
computing net investment income, the portfolio amortizes premiums and
discounts and accrues interest income daily.
(d) DIVIDEND POLICY
The Fixed Income 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 Fixed Income Portfolio pays income dividends on a quarterly basis.
All dividends and distributions will be reinvested automatically unless
the shareholder elects otherwise.
The Government Money Market Portfolio will declare dividends daily and
pay dividends monthly.
(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 may differ
from those estimates.
(3) RELATED PARTY TRANSACTIONS
The Fund and Portfolios 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
Portfolios' 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 Portfolios'
average daily net asset value. The Adviser has agreed to reimburse each
Portfolio up to the amount of advisory fees paid to the extent that total
expenses exceed 1% of the respective Portfolio's average annual daily net
asset value.
21
<PAGE>
For the six months ended September 30, 1998, the Adviser waived investment
advisory fees of 1/4% per annum of the Government Money Market 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, 1998, the fee was calculated as follows:
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE
ON PORTFOLIO'S DAILY NET
ASSETS WAIVED
----------------------------- -----------
<S> <C> <C>
Fixed Income Portfolio .22% .11%
Government Money Market Portfolio .23% .23%
</TABLE>
The total investment advisory and administrative fees waived and other
expenses assumed by the Adviser are set forth in each Portfolio's Statement
of Operations.
Weitz Securities, Inc. as distributor, received no compensation for
distribution of shares of the Portfolios.
(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 and thirty million of these shares
have been authorized to be issued in the series designated Government Money
Market Portfolio. 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.
22
<PAGE>
Transactions in the capital stock of the Fixed Income Portfolio are
summarized as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT. 30, 1998 YEAR ENDED
(UNAUDITED) MARCH 31, 1998
----------------- --------------
<S> <C> <C>
Transactions in shares:
Shares issued...................................................... 123,714 1,080,177
Shares redeemed.................................................... (522,483) (583,294)
Reinvested dividends............................................... 74,834 121,126
-------- --------------
Net increase..................................................... 676,065 618,009
-------- --------------
-------- --------------
</TABLE>
(5) SECURITIES TRANSACTIONS
FIXED INCOME PORTFOLIO
Purchases and proceeds from maturities or sales of investment securities of
the Fixed Income Portfolio, other than short-term securities, aggregated
$12,507,844 and $4,185,077, respectively. The cost of investments is the
same for financial reporting and Federal income tax purposes. At September
30, 1998, the aggregate gross unrealized appreciation and depreciation,
based on cost for Federal income tax purposes, were $1,259,114 and $150,316,
respectively.
For Federal income tax purposes, the Fixed Income Portfolio has realized
capital loss carryforwards of $399,580 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, 2002 - $32,184, March 31, 2003 -$4,254, March 31, 2004 - $348,510, and
March 31, 2005 - $14,632.
23
<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
Lorraine Chang
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 Minnesota, 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 and Government Money Market Portfolios. For
more detailed information about the Funds, their 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.