<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
SUB-TRANSFER AGENT
National Financial Data Services, Inc.
This report has been prepared for the information of the shareholders of Weitz
Series Fund, Inc. - Fixed Income Fund and Government Money Market Fund. 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.
4/28/2000
513422
FIXED INCOME FUND
GOVERNMENT MONEY MARKET
FUND
ANNUAL
REPORT
MARCH 31, 2000
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NEBRASKA 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
www.weitzfunds.com
<PAGE>
(This page has been left blank intentionally.)
2
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
FIXED INCOME FUND
Performance Since Inception........................... 4
Shareholder Letter.................................... 6
Schedule of Investments............................... 9
Financial Statements.................................. 12
GOVERNMENT MONEY MARKET FUND
Shareholder Letter.................................... 16
Schedule of Investments............................... 17
Financial Statements.................................. 18
Notes to Financial Statements............................... 22
</TABLE>
3
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
PERFORMANCE SINCE INCEPTION
A long-term perspective on the Fixed Income Fund's performance is shown below.
The table shows how an investment of $10,000 in the Fixed Income Fund 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 Fund for the one, five, and ten
year periods ended March 31, 2000.
<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
Dec. 31, 1997 10,916 14 8,419 19,349 8.6
Dec. 31, 1998 10,989 14 9,653 20,656 6.8
Dec. 31, 1999 10,432 13 10,400 20,845 0.9
Mar. 31, 2000 10,530 13 10,499 21,042 0.9+
</TABLE>
The Fixed Income Fund's average annual total return for the one, five and ten
year periods ended March 31, 2000, was 1.2%, 6.3% and 6.7%, 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
$10,535. This information represents past performance of the fund 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.
+Return is for the period 1/1/00 through 3/31/00.
4
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
The chart below depicts the change in the value of a $25,000 investment for the
period March 31, 1990, through March 31, 2000 for the Fixed Income Fund as
compared with the growth of the Lehman Brothers Intermediate
Government/Corporate index during the same period. The Lehman Brothers
Intermediate Government/Corporate Index is a total return performance benchmark
consisting of government securities and publicly issued corporate debt issued
with maturities from one to ten years and rated at least BBB by Standard &
Poor's or Baa by Moody's Investor Service. The information assumes reinvestment
of dividends and capital gains distributions. A $25,000 investment in the Fixed
Income Fund on March 31, 1990, would have been valued at $47,623 on March 31,
2000.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
WEITZ HICKORY FUND
<TABLE>
<CAPTION>
DATE FIXED INCOME FUND LEHMAN BOND INDEX
<S> <C> <C>
Mar-90 $25,000 $25,000
Apr-90 $24,998 $24,913
May-90 $25,379 $25,460
Jun-90 $25,591 $25,802
Jul-90 $25,867 $26,160
Aug-90 $25,972 $26,053
Sep-90 $26,209 $26,253
Oct-90 $26,404 $26,558
Nov-90 $26,684 $26,961
Dec-90 $26,900 $27,331
Jan-91 $27,312 $27,609
Feb-91 $27,416 $27,830
Mar-91 $27,592 $28,019
Apr-91 $27,875 $28,325
May-91 $28,036 $28,498
Jun-91 $28,002 $28,518
Jul-91 $28,290 $28,837
Aug-91 $28,747 $29,388
Sep-91 $29,022 $29,894
Oct-91 $29,232 $30,235
Nov-91 $29,543 $30,582
Dec-91 $29,954 $31,329
Jan-92 $29,818 $31,043
Feb-92 $29,893 $31,164
Mar-92 $29,968 $31,043
Apr-92 $30,224 $31,316
May-92 $30,485 $31,801
Jun-92 $30,811 $32,272
Jul-92 $31,091 $32,914
Aug-92 $31,269 $33,244
Sep-92 $31,656 $33,696
Oct-92 $31,221 $33,258
Nov-92 $31,189 $33,131
Dec-92 $31,610 $33,576
Jan-93 $32,144 $34,227
Feb-93 $32,631 $34,768
Mar-93 $32,785 $34,907
Apr-93 $32,983 $35,186
May-93 $32,947 $35,108
Jun-93 $33,490 $35,659
Jul-93 $33,588 $35,747
Aug-93 $34,080 $36,314
Sep-93 $34,213 $36,464
Oct-93 $34,280 $36,562
Nov-93 $34,016 $36,358
Dec-93 $34,157 $36,525
Jan-94 $34,527 $36,930
Feb-94 $34,057 $36,384
Mar-94 $33,547 $35,784
Apr-94 $33,361 $35,540
May-94 $33,386 $35,564
Jun-94 $33,235 $35,569
Jul-94 $33,742 $36,081
Aug-94 $33,857 $36,194
Sep-94 $33,394 $35,861
Oct-94 $33,288 $35,856
Nov-94 $33,168 $35,693
Dec-94 $33,350 $35,819
Jan-95 $33,990 $36,423
Feb-95 $34,832 $37,179
Mar-95 $35,020 $37,391
Apr-95 $35,395 $37,853
May-95 $36,489 $38,997
Jun-95 $36,778 $39,259
Jul-95 $36,693 $39,264
Aug-95 $37,113 $39,622
Sep-95 $37,368 $39,908
Oct-95 $37,752 $40,353
Nov-95 $38,202 $40,884
Dec-95 $38,609 $41,312
Jan-96 $38,893 $41,668
Feb-96 $38,416 $41,179
Mar-96 $38,254 $40,967
Apr-96 $38,008 $40,822
May-96 $37,961 $40,791
Jun-96 $38,407 $41,225
Jul-96 $38,548 $41,347
Aug-96 $38,512 $41,380
Sep-96 $39,163 $41,956
Oct-96 $39,977 $42,698
Nov-96 $40,669 $43,261
Dec-96 $40,305 $42,984
Jan-97 $40,414 $43,151
Feb-97 $40,533 $43,233
Mar-97 $40,238 $42,935
Apr-97 $40,728 $43,439
May-97 $41,046 $43,800
Jun-97 $41,516 $44,254
Jul-97 $42,499 $45,099
Aug-97 $42,192 $44,872
Sep-97 $42,798 $45,394
Oct-97 $43,328 $45,897
Nov-97 $43,437 $45,998
Dec-97 $43,789 $46,366
Jan-98 $44,343 $46,974
Feb-98 $44,323 $46,938
Mar-98 $44,553 $47,088
Apr-98 $44,752 $47,324
May-98 $45,077 $47,672
Jun-98 $45,338 $47,976
Jul-98 $45,506 $48,145
Aug-98 $46,104 $48,902
Sep-98 $46,613 $50,130
Oct-98 $46,410 $50,081
Nov-98 $46,641 $50,077
Dec-98 $46,749 $50,278
Jan-99 $47,143 $50,554
Feb-99 $46,778 $49,811
Mar-99 $47,072 $50,183
Apr-99 $47,248 $50,337
May-99 $46,955 $49,950
Jun-99 $46,899 $49,984
Jul-99 $46,796 $49,940
Aug-99 $46,709 $49,978
Sep-99 $47,097 $50,445
Oct-99 $47,183 $50,575
Nov-99 $47,227 $50,637
Dec-99 $47,177 $50,472
Jan-00 $46,821 $50,287
Feb-00 $47,267 $50,702
Mar-00 $47,623 $51,231
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
1-YEAR 5-YEARS 10-YEARS
------ ------- --------
<S> <C> <C> <C>
FIXED INCOME FUND........................... 1.2% 6.3% 6.7%
Lehman Brothers Intermediate/Corporate
Index..................................... 2.1% 6.5% 7.4%
</TABLE>
This information represents past performance of the Fixed Income Fund 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.
5
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
MARCH 31, 2000 - ANNUAL REPORT
April 7, 2000
Dear Fellow Shareholder:
The Fixed Income Fund's total return for the first quarter of 2000 was
+0.9%, which consisted of +1.5% from net interest income (after deducting fees
and expenses) and -0.6% 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.
<TABLE>
<CAPTION>
1 YEAR 5 YEARS
-------- --------
<S> <C> <C>
FIXED INCOME FUND 1.2% 6.3%
Average Intermediate Investment
Grade Fixed Income Fund* 1.0% 6.3%
</TABLE>
*Source: Lipper Analytical Services
The following table shows a profile of our portfolio as of March 31:
<TABLE>
<S> <C>
Average Maturity 7.2 years
Average Duration 4.4 years
Average Coupon 7.0%
30-Day SEC Yield at 3-31-00 7.0%
Average Rating AA
</TABLE>
MARKET REVIEW
The stock market may capture most of the headlines when it comes to the
topic of volatility. However, you would have to look back to the early 1980's,
when then Fed chief Paul Volcker's monetary straight jacket sent long Treasuries
to the mid-teens in yield, to find a more volatile period for the bond market
than the first quarter of this year.
At the start of the year, most pundits felt (and still feel) that the Fed
would continue raising rates to slow the white-hot U.S. economy. To that end,
the Fed did not disappoint. The inflation-fighting central bank raised
short-term interest rates twice during the quarter, bringing the Fed funds rate
(the rate at which banks lend to each other) to 6%. Since last June, the Fed has
raised short-term rates 5 times in small, quarter-point steps.
6
<PAGE>
Has the patient (the economy) responded to this slow drip of interest-rate
medicine? Not yet, as evidenced by the strong 7.3% growth in fourth quarter GDP
(a measure of the nation's output of goods and services). This growth was the
highest in the current expansion and the fastest in nearly 16 years. The good
news for bond investors, however, is that inflation remains quiescent as growth
has been accelerating. While it's true that monetary action works with a lag,
the jury is still out as to whether the Fed's efforts to date have been enough
to slow domestic growth to a more sustainable level.
The scene we've just described is a Federal Reserve attempting to slow the
economy gradually, certainly not emergency room trauma for the marketplace. Why
the chaos in the bond market this quarter, then, as we mentioned at the outset
of our letter? For starters, markets dislike uncertainty and a tightening
central bank leaves investors wondering when the Fed will accomplish its goals
and how high short-term rates will have to increase for those goals to be
accomplished.
Other factors, however, have also heightened the volatility in the bond
market. The Treasury's buyback announcement in January likely kicked off the
affair. That news caused fear that Treasury bonds would become scarce, driving
their prices upward and their yields down (bond yields move inversely to
prices). The Treasury rally can also be attributed to investor expectations that
the Fed will be successful in slowing growth and preventing an outbreak of
inflation.
Further turmoil in the bond market is being caused today as Congress
considers legislation making it more explicit that Federal agencies
(specifically Fannie Mae and Freddie Mac) do NOT enjoy the backing of the
federal government. The result has been a de-linking between Treasuries and many
other fixed-income markets.
OUTLOOK
Where do we go from here? As usual, the outlook for the next several
quarters is a mystery to us. We would reiterate much of what we said at the end
of the year. Economic growth has certainly been strong but a number of secular
themes have helped to keep inflation at bay. Those themes are: a globalization
of worldwide economies; technological innovation and investment which has led to
increased corporate productivity; and demographic trends, which favor investment
and saving at the margin rather than consumption. Adding sound fiscal and
monetary policy to the above mix provides a positive investment climate for
fixed-income investors.
7
<PAGE>
Our strategy remains investing in a relatively short-term, high quality
portfolio that captures most of the return available on long-term bonds while
avoiding some of the volatility associated with longer-term bonds. This strategy
will not insulate us completely from large swings in interest rates, but by
investing in high quality, short- to intermediate-term bonds, we feel we can
continue to capture most of the "coupon" returns of long-term bonds with LOWER
overall interest rate risk.
While the vast majority of our portfolio is invested in bonds, we continue
to search for other fixed-income investments that have favorable risk/reward
characteristics. Our Redwood Trust 9.74% convertible preferred remains a case in
point. We made our investment in Redwood a little over a year ago and have added
to it subsequently. As a reminder, Redwood is a $2.5 billion mortgage real
estate investment trust (whose common stock we own in the equity funds). Their
business, which has improved measurably since the credit crisis in the fall of
1998, is in managing a portfolio of high-quality jumbo residential mortgage and
commercial loans. With a solid business and good management, the preferred stock
should continue to deliver secure income over time with an up-side potential
should its common stock price improve.
If you have any questions about any of our investments or strategy, please
feel free to call.
<TABLE>
<S> <C> <C>
Best regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
</TABLE>
8
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
FACE
RATING* AMOUNT COST VALUE
- --------------------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- 31.0%
A $ 500,000 Phillip Morris Notes 7.125% 8/15/02 $ 500,000 $ 482,182
750,000 Superior Financial Corp. Sr. Notes 8.65% 4/01/03 750,000 724,295
A+ 48,000 Homeside, Inc. 11.25% 5/15/03 48,000 52,680
Ba2 1,100,000 USA Networks, Inc. 7.0% 7/01/03 1,084,701 1,126,125
A 1,000,000 Countrywide Home Loans, Inc. 6.85% 6/15/04 996,072 971,903
A+ 1,000,000 Ford Motor Credit Co. Notes 6.7% 7/16/04 998,560 970,588
250,000 Local Financial Corp. 11.0% 9/08/04 250,000 251,250
BBB 1,000,000 ConAgra, Inc. Sub. Notes 7.4% 9/15/04 1,000,000 995,929
BB- 750,000 Century Communications Sr. Notes 9.5% 3/01/05 794,755 738,750
A 600,000 General Motors Acceptance Corp. Debs. 6.625% 10/15/05 597,908 573,710
BBB- 1,000,000 Hilton Hotels Corp. Sr. Notes 7.95% 4/15/07 968,144 924,005
BBB- 500,000 Liberty Media Corp. Sr. Notes 7.875% 7/15/09 501,998 492,450
BBB 500,000 Harcourt General 6.5% 5/15/11 486,338 448,750
AA- 1,000,000 Merrill Lynch 7.15% 7/30/12 1,000,000 940,250
AAA 1,000 Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18 1,039 1,043
----------- -----------
Total Corporate Bonds 9,977,515 9,693,910
----------- -----------
MORTGAGE-BACKED SECURITIES -- 23.8%
AAA 6,633 Fannie Mae 11% 1/01/01 (Avg. Life 0.4 years) 6,663 6,710
AAA 291,665 Fannie Mae REMIC Planned Amortization Class 7.5% 4/25/19 289,388 291,620
(Avg. Life 1.2 years)
AAA 23,391 Freddie Mac 9.5% 9/01/03 (Avg. Life 1.5 years) 23,391 23,912
AAA 500,000 Fannie Mae REMIC Planned Amortization Class 6.5% 10/25/18 487,107 489,227
(Avg. Life 2.4 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 8/15/20 1,003,412 988,113
(Avg. Life 2.8 years)
AAA 500,000 Freddie Mac REMIC Planned Amortization Class 6.65% 9/15/21 491,107 484,572
(Avg. Life 3.9 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 6.75% 992,418 967,390
12/15/21
(Avg. Life 5.4 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 4/15/21 977,331 973,225
(Avg. Life 5.5 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 9/15/09 1,003,335 973,575
(Avg. Life 5.9 years)
AAA 500,000 Freddie Mac REMIC Planned Amortization Class 7.0% 7/15/21 495,690 484,437
(Avg. Life 6.0 years)
</TABLE>
The accompanying notes form an integral part of these financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
RATING* AMOUNT COST VALUE
- --------------------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
AAA $1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 8/15/21 $ 1,018,892 $ 968,895
(Avg. Life 6.3 years)
AAA 845,895 Fannie Mae 6.5% 6/01/18 (Avg. Life 6.6 years) 844,912 804,711
----------- -----------
Total Mortgage-Backed Securities 7,633,646 7,456,387
----------- -----------
TAXABLE MUNICIPAL BONDS -- 3.1%
AAA 325,000 Baltimore Maryland 7.25% 10/15/05 328,617 323,527
AAA 500,000 Stratford Connecticut 6.55% 2/15/13 500,000 462,710
AAA 60,000 Oklahoma Hsg. Fin. Auth. 8.7% 9/01/13 60,000 61,587
AAA 115,000 Oklahoma Hsg. Fin. Auth. 7.3% 12/01/14 115,000 112,459
----------- -----------
Total Taxable Municipal Bonds 1,003,617 960,283
----------- -----------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 33.9%
AAA 1,000,000 Fannie Mae 5.75% 4/15/03 997,808 964,517
AAA 1,000,000 Federal Home Loan Bank 5.125% 9/15/03 1,000,000 942,644
AAA 100,000 U.S. Treasury Note 8.25% 5/15/05 102,758 100,313
AAA 1,000,000 Freddie Mac 7.09% 6/01/05 1,000,130 981,699
AAA 1,000,000 Fannie Mae 7.27% 8/24/05 1,000,163 985,057
AAA 2,000,000 Federal Home Loan Bank 6.04% 9/08/05 2,000,000 1,893,324
AAA 500,000 Federal Home Loan Bank 6.44% 11/28/05 500,457 485,315
AAA 500,000 Freddie Mac 6.407% 2/22/06 497,722 477,896
AAA 1,000,000 Fannie Mae 7.15% 10/11/06 992,635 976,558
AAA 1,000,000 Fannie Mae 6.56% 11/26/07 1,000,000 948,416
AAA 1,000,000 Fannie Mae 6.50% 3/19/08 993,179 944,659
AAA 1,000,000 Freddie Mac 6.41% 7/15/13 1,012,064 903,809
----------- -----------
Total U.S. Government and Agency Securities 11,096,916 10,604,207
----------- -----------
<CAPTION>
SHARES
----------
<S> <C> <C> <C> <C>
COMMON STOCKS -- 0.5%
46,500 Hanover Capital Mortgage Holdings, Inc. 422,645 171,469
----------- -----------
CONVERTIBLE PREFERRED STOCKS -- 2.9%
35,600 Redwood Trust, Inc. 9.74% Pfd. Class B 949,654 901,125
----------- -----------
</TABLE>
The accompanying notes form an integral part of these financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
RATING* SHARES COST VALUE
- --------------------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
NON-CONVERTIBLE PREFERRED STOCKS -- 0.6%
B3 5,000 Crown American Realty Trust 11% Pfd. Series A $ 222,500 $ 185,625
----------- -----------
<CAPTION>
FACE
AMOUNT
----------
<S> <C> <C> <C> <C>
SHORT-TERM SECURITIES -- 2.8%
$ 883,683 Wells Fargo Government Money Market Fund 883,683 883,683
----------- -----------
Total Investments in Securities $32,190,176 30,856,689
===========
Other Assets Less Liabilities -- 1.4% 425,139
-----------
Total Net Assets -- 100% $31,281,828
===========
Net Asset Value Per Share $ 10.68
===========
</TABLE>
*Ratings are unaudited.
The accompanying notes form an integral part of these financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $32,190,176) $30,856,689
Accrued interest and dividends receivable 440,868
-----------
Total assets 31,297,557
-----------
Liabilities:
Due to adviser 13,213
Other expenses 2,516
-----------
Total liabilities 15,729
-----------
Net assets applicable to outstanding capital stock $31,281,828
===========
Net assets represented by:
Paid-in capital (note 4) 32,796,756
Accumulated undistributed net investment income 541,813
Accumulated net realized loss (723,254)
Net unrealized depreciation of investments (1,333,487)
-----------
Total representing net assets applicable to shares
outstanding $31,281,828
===========
Net asset value per share of outstanding capital stock
(2,929,104 shares outstanding) $ 10.68
===========
</TABLE>
The accompanying notes form an integral part of these financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
<TABLE>
<S> <C> <C>
Investment income:
Dividends $ 147,919
Interest 2,546,748
-----------
Total investment income 2,694,667
-----------
Expenses:
Investment advisory fee $195,322
Administrative fee 83,471
Registration fees 23,945
Sub-transfer agent and fund accounting fees 19,459
Directors fees 394
Other expenses 20,419
--------
Total expenses 343,010
Less administrative fee waived by investment adviser (50,026)
-----------
Net expenses 292,984
-----------
Net investment income 2,401,683
-----------
Realized and unrealized loss on investments:
Net realized loss on investments (371,371)
Net unrealized depreciation of investments (1,672,716)
-----------
Net realized and unrealized loss on investments (2,044,087)
-----------
Net increase in net assets resulting from
operations $ 357,596
===========
</TABLE>
The accompanying notes form an integral part of these financial statements.
13
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
2000 1999
------------ ------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income $ 2,401,683 $ 2,119,743
Net realized gain (loss) (371,371) 47,697
Net unrealized depreciation (1,672,716) (230,752)
------------ ------------
Net increase in net assets resulting from
operations 357,596 1,936,688
------------ ------------
Distributions to shareholders from:
Net investment income (2,375,622) (2,051,550)
------------ ------------
Total distributions (2,375,622) (2,051,550)
------------ ------------
Capital share transactions:
Proceeds from sales 14,862,565 21,496,314
Payments for redemptions (20,121,176) (17,256,576)
Reinvestment of distributions 2,244,174 1,854,988
------------ ------------
Total increase (decrease) from capital
share transactions (3,014,437) 6,094,726
------------ ------------
Total increase (decrease) in net assets (5,032,463) 5,979,864
------------ ------------
Net assets:
Beginning of period 36,314,291 30,334,427
------------ ------------
End of period (including undistributed investment income
of $541,813 and $515,750, respectively) $ 31,281,828 $ 36,314,291
============ ============
</TABLE>
The accompanying notes form an integral part of these financial statements.
14
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Fixed Income Fund outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.22 $ 11.26 $ 10.77 $ 10.90 $ 10.61
------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.69 0.66 0.65 0.66 0.65
Net gains or losses on securities
(realized and unrealized) (0.57) (0.04) 0.47 (0.11) 0.31
------- ------- ------- ------- -------
Total from investment operations 0.12 0.62 1.12 0.55 0.96
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.66) (0.66) (0.63) (0.68) (0.67)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.68 $ 11.22 $ 11.26 $ 10.77 $ 10.90
======= ======= ======= ======= =======
TOTAL RETURN 1.2% 5.7% 10.7% 5.2% 9.2%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $31,282 $36,314 $30,334 $22,349 $16,901
Ratio of net expenses to average net assets+ 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to average net
assets 6.15% 5.91% 6.18% 6.30% 6.18%
Portfolio turnover rate 39% 26% 21% 24% 28%
</TABLE>
+Absent voluntary waivers, the expense ratio would have been 0.88%, 0.86%,
0.91%, 0.93% and 0.95% for the years ended March 31, 2000, 1999, 1998, 1997 and
1996, respectively.
The accompanying notes form an integral part of these financial statements.
15
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
MARCH 31, 2000 - ANNUAL REPORT
April 5, 2000
Dear Shareholder:
The Government Money Market Fund closed the first quarter with a 7-day
yield of 4.6% and a 30-day yield of 5.0%.
The Federal Reserve continued its effort to slow the economy by raising
its target for short-term interest rates twice during the first quarter. The Fed
remains concerned that domestic imbalances caused by increases in aggregate
demand will exceed growth in potential supply and cause inflation to accelerate.
Consequently, it appears that the Fed will keep raising rates until growth slows
to a more sustainable pace to make sure that inflation stays under control.
Regardless of future rate fluctuations, however, our strategy is to invest
in liquid short-term Government securities that have a weighted-average maturity
of less than 90 days. And while it is impossible to predict what our fund will
yield over the next year, it seems plausible that the return on our portfolio
will increase over the ensuing months as short-term investments mature and we
are able to reinvest at higher rates.
If you have any questions about the mechanics of the fund or our
investment strategy, please feel free to call.
<TABLE>
<S> <C> <C>
Best regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
</TABLE>
16
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
FACE
RATING AMOUNT VALUE
- ----------- ------------ ------------
<C> <C> <S> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 96.5%*
AAA $11,500,000 Federal Home Loan Bank Discount Note 5.759% 4/19/00 $11,468,260
AAA 5,000,000 Federal Home Loan Bank Discount Note 5.936% 5/03/00 4,974,533
AAA 8,000,000 U.S Treasury Bill 5.719% 5/04/00 7,959,216
AAA 13,000,000 U.S Treasury Bill 6.100% 8/24/00 12,693,416
-----------
Total U.S. Government and Agency Securities 37,095,425
-----------
SHORT-TERM SECURITIES -- 3.9%
1,497,651 Wells Fargo 100% Treasury Money Market Fund 4.247% 1,497,651
-----------
Total Investments in Securities (Cost $38,593,076)** 38,593,076
-----------
Other Liabilities in Excess of Other Assets -- (0.4%) (166,946)
-----------
Total Net Assets -- 100% $38,426,130
===========
</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.
The accompanying notes form an integral part of these financial statements.
17
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<S> <C>
Assets:
Investment in securities at amortized cost, which
approximates value $38,593,076
Accrued interest 5,173
-----------
Total assets 38,598,249
-----------
Liabilities:
Due to adviser 7,647
Distributions payable 145,517
Other expenses 18,955
-----------
Total liabilities 172,119
-----------
Net assets applicable to outstanding capital stock $38,426,130
===========
Net assets represented by:
Accumulated undistributed net investment income 7,766
Accumulated net realized loss (7,766)
Paid-in capital (note 4) 38,426,130
-----------
Total representing net assets applicable to shares
outstanding $38,426,130
===========
Net asset value per share of outstanding capital stock
(38,426,130 shares outstanding) $ 1.00
===========
</TABLE>
The accompanying notes form an integral part of these financial statements.
18
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
<TABLE>
<S> <C> <C>
Investment income:
Interest $1,599,667
----------
Total investment income 1,599,667
----------
Expenses:
Investment advisory fee $156,335
Administrative fee 68,595
Registration fees 18,343
Sub-transfer agent and fund accounting fees 26,155
Directors fees 310
Other expenses 8,676
--------
Total expenses 278,414
Less advisory and administrative fees waived
by investment adviser (122,079)
----------
Net expenses 156,335
----------
Net investment income 1,443,332
----------
Realized loss on investments (7,766)
----------
Net increase in net assets resulting from
operations $1,435,566
==========
</TABLE>
The accompanying notes form an integral part of these financial statements.
19
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
2000 1999
------------- ------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 1,435,566 $ 866,165
Net realized gain -- 13,754
------------- ------------
Net increase in net assets resulting from
operations 1,435,566 879,919
------------- ------------
Distributions to shareholders from:
Net investment income (1,435,566) (866,165)
Net realized gain -- (13,754)
------------- ------------
Total distributions (1,435,566) (879,919)
------------- ------------
Capital share transactions, at $1.00 per share:
Proceeds from sales 469,700,906 115,827,219
Payments for redemptions (465,683,084) (91,793,527)
Reinvestment of distributions 1,251,305 793,390
------------- ------------
Total increase from capital share transactions 5,269,127 24,827,082
------------- ------------
Total increase in net assets 5,269,127 24,827,082
------------- ------------
Net assets:
Beginning of period 33,157,003 8,329,921
------------- ------------
End of period $ 38,426,130 $ 33,157,003
============= ============
</TABLE>
The accompanying notes form an integral part of these financial statements.
20
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Government Money Fund outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
------- ------- ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
------- ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ====== ====== ======
TOTAL RETURN 4.6% 4.7% 5.1% 4.8% 5.2%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $38,426 $33,157 $8,330 $5,820 $4,142
Ratio of net expenses to average net
assets+ 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets 4.61% 4.47% 4.95% 4.71% 4.95%
</TABLE>
+Absent voluntary waivers, the expense ratio would have been 0.89%, 1.03%,
1.12%, 1.15% and 1.14% for the years ended March 31, 2000, 1999, 1998, 1997 and
1996, respectively.
The accompanying notes form an integral part of these financial statements.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
GOVERNMENT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(1) ORGANIZATION
Weitz Series Fund, Inc. (the "Company"), 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, 2000, the Company had four
series in operation: the Fixed Income Fund, the Government Money Market
Fund, the Value Fund, and the Hickory Fund. The accompanying financial
statements present the financial position and results of operations of the
Fixed Income and the Government Money Market Funds (each, a "Fund").
The Fixed Income Fund's investment objective is high current income
consistent with preservation of capital.
The Government Money Market Fund's investment objective is current income
consistent with the preservation of capital and maintenance of liquidity.
The Government Money Market Fund 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.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in accordance with
accounting policies generally accepted in the investment company industry.
(a) VALUATION OF INVESTMENTS
FIXED INCOME FUND
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 ask prices.
23
<PAGE>
- Securities not listed on an exchange are valued at the mean
between the latest available and representative bid and ask
prices.
- 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 supervision of
the Company's Board of Directors.
GOVERNMENT MONEY MARKET FUND
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 Funds' policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of their 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 Fund.
(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.
With respect to the Fixed Income Fund, 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 Fund, in computing net
investment income, the Fund amortizes premiums and discounts and accrues
interest income daily.
24
<PAGE>
(d) DIVIDEND POLICY
The Fixed Income Fund 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 Fund pays income dividends on a quarterly
basis. All dividends and distributions will be reinvested automatically
unless the shareholder elects otherwise.
The Government Money Market Fund 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
Each Fund has retained Wallace R. Weitz & Company (the "Adviser") as its
investment adviser. In addition, the Company has an agreement with Weitz
Securities, Inc. to act as distributor for the Funds' shares. Certain
officers and directors of the Company 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 respective
Fund's average daily net asset value. The Adviser has agreed to reimburse
each Fund up to the amount of advisory fees paid to the extent that total
expenses exceed 1% of the respective Fund's average annual daily net asset
value.
For the year ended March 31, 2000, the Adviser waived investment advisory
fees of 1/4% per annum of the Government Money Market Fund'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, 2000,
the fee was calculated as follows:
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE
ON FUND'S DAILY NET ASSETS WAIVED
-------------------------- --------
<S> <C> <C>
Fixed Income Fund................................... .21% .13%
Government Money Market Fund........................ .22% .14%
</TABLE>
25
<PAGE>
The total investment advisory and administrative fees waived by the Adviser
are set forth in each Fund's Statement of Operations.
Weitz Securities, Inc. as distributor, received no compensation for
distribution of shares of the Funds.
(4) CAPITAL STOCK
The Company is authorized to issue a total of five billion 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 Fund and 100 million of these shares have
been authorized to be issued in the series designated Government Money
Market Fund. The Board of Directors may authorize additional shares in other
series of the Company'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.
Transactions in the capital stock of the Fixed Income Fund are summarized as
follows:
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
2000 1999
---------- ----------
<S> <C> <C>
Transactions in shares:
Shares issued............................................. 1,323,301 1,910,572
Shares redeemed........................................... (1,837,651) (1,533,634)
Reinvested dividends...................................... 207,450 166,030
---------- ----------
Net increase (decrease)................................. (306,900) 542,968
========== ==========
</TABLE>
(5) SECURITIES TRANSACTIONS
FIXED INCOME FUND
Purchases and proceeds from maturities or sales of investment securities
of the Fixed Income Fund, other than short-term securities, aggregated
$14,306,558 and $15,491,598, respectively. The cost of investments is the
same for financial reporting and Federal income tax purposes. At
March 31, 2000, the aggregate gross unrealized appreciation and
depreciation, based on cost for Federal income tax purposes, were $53,866
and $1,387,353, respectively.
At March 31, 2000, the Fixed Income Fund had tax basis capital losses of
$412,112 which may be carried over 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, 2004 - $337,251, March 31, 2005 - $14,632 and March 31, 2008 -
$60,229. In addition, the Fixed Income Fund had deferred capital losses
occurring subsequent to October 31, 1999 of $311,142. For tax purposes
such losses will be reflected in the year ended March 31, 2001.
26
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders
Weitz Series Fund, Inc. - Fixed Income and Government Money Market Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments in securities, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial positions of Weitz
Series Fund, Inc. - Fixed Income and Government Money Market Funds (the "Funds")
at March 31, 2000, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the year ended
March 31, 2000, in conformity with accounting principles generally accepted in
the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at March 31, 2000, by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above. The financial statements for the year ended March 31, 1999,
including the financial highlights for each of the four years in the period then
ended, were audited by other independent accountants whose reports dated
April 15, 1999, and April 17, 1996, expressed an unqualified opinion on those
financial statements.
PricewaterhouseCoopers LLP
New York, New York
April 20, 2000
27
<PAGE>
WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
GOVERNMENT MONEY MARKET FUND
SHAREHOLDER INFORMATION
ANNUAL SHAREHOLDER INFORMATION MEETING Please plan to join us on Wednesday,
May 24, at 4:30 at the Omaha Marriott in the Regency area of West Omaha. This
meeting is a good opportunity to meet your fellow shareholders and the client
service people you have talked to on the phone. There will be no official
business meeting, but Wally, Rick and Tom will take shareholder questions until
about 5:45.
This year we are going to experiment with taking questions IN WRITING before and
during the meeting to try to combine questions on similar topics and to try to
make sure we get to everyone's questions, including those of the shy
shareholders. Please send a note by mail or an e-mail to
[email protected] if you would like to toss a question into the mix.
WEB SITE ACCESS TO ACCOUNT INFORMATION Our web site's address is
www.weitzfunds.com, and it contains daily prices, performance information, and
virtually all of our printed material, including previous quarters' shareholder
letters and a transcript of a recent conference call that Rick and Wally held
with a group of investment advisors. Now, thanks to our webmaster Patty Weist's
hard work and help from our DST friends in Kansas City, shareholders can check
balances and transaction histories on our web site. The first time you do this,
you should (1) click on the "Account Access" button and follow instructions for
creating a personal identification number (PIN). (2) Read the legal disclaimer
and CHECK THE BOX at the bottom of the disclaimer. (3) Access your account(s).
AUTOMATED PHONE ACCOUNT ACCESS You may also check your account balances and
recent transactions by calling (800) 773-6472 and wending your way through the
(dreaded) phone tree. Instructions for using this line are shown on the back of
your account statements and on the web site.
28
