[LOGO]
ANNUAL REPORT
LARGE COMPANY GROWTH PORTFOLIO
LARGE COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
----------
AUGUST 31, 1996
WILSHIRE TARGET FUNDS, INC.
<TABLE>
<CAPTION>
<S> <C>
Shareholder Letter 1
Large Company Growth Portfolio:
Fund Commentary 4
Comparative Performance 5
Large Company Value Portfolio:
Fund Commentary 6
Comparative Performance 7
Small Company Growth Portfolio:
Fund Commentary 8
Comparative Performance 9
Small Company Value Portfolio:
Fund Commentary 10
Comparative Performance 11
Statement of Investments:
Large Company Growth Portfolio 12
Large Company Value Portfolio 21
Small Company Growth Portfolio 28
Small Company Value Portfolio 35
Statements of Assets and Liabilities 42
Statements of Operations 44
Statements of Changes in Net Assets 45
Financial Highlights:
Large Company Growth Portfolio 48
Large Company Value Portfolio 49
Small Company Growth Portfolio 50
Small Company Value Portfolio 51
Notes to Financial Statements 52
Report of Independent Accountants 59
Tax Information 60
Special Meeting of Shareholders 61
</TABLE>
- --------------------------------------------------------------------------------
THIS REPORT IS FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF LARGE
COMPANY GROWTH PORTFOLIO, LARGE COMPANY VALUE PORTFOLIO, SMALL COMPANY GROWTH
PORTFOLIO AND SMALL COMPANY VALUE PORTFOLIO. ITS USE IN CONNECTION WITH ANY
OFFERING OF A PORTFOLIO'S SHARES IS AUTHORIZED ONLY IF ACCOMPANIED OR PRECEDED
BY THE PORTFOLIO'S CURRENT PROSPECTUS.
DEAR SHAREHOLDER,
Greetings to all shareholders of Wilshire Target Funds, Inc. (the "Fund").
We at Wilshire Associates Incorporated ("Wilshire") are pleased to continue as
the Fund's manager now that the Fund is under the Wilshire name. Wilshire has
been the fund manager since the Dreyfus-Wilshire Target Fund series began, and
nothing will change in the way the portfolios are managed. Our concept remains
simple and straightforward. We aim to provide focused vehicles to capture the
performance of each of the specific investment styles reflected in the relevant
portfolio's objective. We believe that adhering to proven methods and
controlling costs is the best way to achieve success in money management. In
that way, the benefits are more likely to fall to the bottom line.
The Fund offers focused exposure to four distinct segments of the equity
market represented by the Large Company Value, Large Company Growth, Small
Company Value and Small Company Growth Portfolios. In the past 12 months, very
different performance patterns have emerged depending upon the style and size
category one is reviewing. This report covers the 12-month period ended August
31, 1996, the closing date of each portfolio's fiscal year. Each portfolio
offers two classes of shares -- Investment Class shares and Institutional Class
shares. Performance figures for both classes of each portfolio are contained in
the following pages.
THE STYLE APPROACH AND INVESTMENT STRATEGY
Investors target different fundamental characteristics when choosing to
pursue a style approach. Consequently, each portfolio owns only securities which
correspond with the characteristics most commonly associated with that style.
Generally, the growth portfolios focus on companies whose financial
characteristics include above average earnings growth, sales growth, and return
on equity. Conversely, the value portfolios seek companies with above average
earnings yield, dividend yield, and book-to-price ratios. Stocks are purchased
only if they meet the specific growth or value criteria defined for the
portfolio.
In addition, changes are made over time which insure that the portfolios
keep their proper focus toward that style. Stocks are sold if their size clashes
with the portfolio's objective or if their financial condition changes to the
point where they can no longer be considered either growth or value. As all
investors know, value stocks do not stay value stocks forever. Once a security
makes a strong relative advance, it can no longer be as attractive as it was
before the move. As a result, the portfolios require constant vigilance and
monitoring. Whether the focus is growth, value, large or small, we see it as a
top priority to be sure each portfolio always includes the most attractive list
of names for that style given that valuations are constantly changing.
1
Of course, no single investment strategy is in favor all of the time.
Sometimes stocks with high earnings growth perform well and other times not.
Similarly, while studies have shown that over time small stocks do better than
large, there are many shorter periods in which large company stocks outperform.
The Fund allows the investor to select the style and size segment which best
fits his or her investment objectives with the assurance that the portfolio
selected will remain focused on the stated style.
During the year ended August 31, 1996, large company stocks outperformed
small company stocks by a significant margin, as demonstrated below.
[BarGraph Inserted Here]
The Wilshire 5000 Index, comprising all U.S. equity securities, advanced 17.22%
for the year ended August 31, 1996. Large companies, as measured by Standard &
Poor's 500 Composite Stock Price Index (the "S&P 500 Index"), rose 18.71% while
small companies, as measured by the Wilshire Next 1750 Index, climbed 11.99%.
In looking at the portfolio returns one can see that it was rewarding to
pursue growth strategies versus value disciplines during the fiscal year ended
August 31, 1996. During the latter part of the past fiscal year, we observed a
fairly significant rally in technology stocks which most often are identified
using growth criteria. However, for the full year, the performance of technology
stocks was generally weak. Our value model emphasizes low price-to-earnings
ratios and higher yield securities which, in the latter part of the past fiscal
year, were adversely impacted by the upward pressure on interest rates. However,
once again, for the full fiscal year, the utilities and banking industries were
two of the best performing sectors. The bottom line is that it was a year in
which there was no clear direction in style, which made it very confusing for
investors and managers alike. This also underscores the fact that it is best to
have exposure to all market categories because it is so difficult to predict
which category will do well next.
2
We truly hope you find that the Fund assists you in realizing your
investment goals. As our historical record reveals, each style category has a
distinct performance history. We think this shows how serious we are in
following our unique investment discipline. We will endeavor to help you
accomplish your investment objectives today and for many years to come.
Sincerely,
/s/ Thomas D. Stevens
THOMAS D. STEVENS
President and Chairman of the Board
October 1, 1996
3
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LARGE COMPANY GROWTH PORTFOLIO [LOGO]
- --------------------------------------------------------------------------------
FUND COMMENTARY
Large Company Growth Portfolio focuses on companies with relatively large
market capitalizations which have financial characteristics commonly associated
with growth companies. Over the year ended August 31, 1996, the total return of
Large Company Growth Portfolio was 21.90% compared with 18.71% for the Standard
& Poor's 500 Composite Stock Price Index ("S&P 500 Index") and 17.22% for the
Wilshire 5000 Index (the "Index"). This strong performance was due to two
favorable factors over this period. First, large company stocks, in general,
outperformed small company stocks by over 6 percentage points during the period.
Second, the period was a particularly beneficial time for growth stocks and, as
a result, the portfolio outperformed non-growth stocks of comparable size by
significant margins. The three industries primarily contributing to the
portfolio's strong performance during the past fiscal year were producer goods,
food and agriculture, and business machines. Coca-Cola Company, one of the
portfolio's largest holdings, was up 58% during the period and General Electric
Company, another large holding, was up 45%. Both Microsoft Corporation and Intel
Corporation assisted the portfolio's performance with returns in excess of 30%
each.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------
AVERAGE ANNUAL WITHOUT
TOTAL RETURN* ACTUAL WAIVERS
------------- ------ -------
<S> <C> <C>
Inception (9/30/92) through 8/31/96 13.51% 12.92%
Year Ended 8/31/96 21.90% 21.80%
* Assumes the reinvestment of all dividends and distributions.
</TABLE>
IMPORTANT FUND INFORMATION1
(AS OF AUGUST 31, 1996)
<TABLE>
<CAPTION>
<S> <C>
CURRENT YIELD 1.28%
AVERAGE 5-YEAR EARNINGS GROWTH 15.55%
AVERAGE 5-YEAR RETURN ON EQUITY 25.88%
AVERAGE BOOK/PRICE RATIO 24.3%
</TABLE>
1 All averages are dollar weighted averages. The 5-year numbers are
calculated based on the results for the 5-year period ended August 31,
1996 for those securities in the portfolio's holdings as of August 31,
1996 whose issuers have been in existence for at least 5 years. The
average book/price ratio is calculated based on the book value of each
portfolio security as of the end of its most recent fiscal year.
4
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LARGE COMPANY GROWTH PORTFOLIO -- (CONTINUED) [LOGO]
- --------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
INVESTMENT CLASS SHARES OF LARGE COMPANY GROWTH
PORTFOLIO AND THE WILSHIRE 5000 INDEX
[Line Chart Depicting Value Below]
LARGE COMPANY
GROWTH PORTFOLIO WILSHIRE 5000 INDEX
---------------- -------------------
09/30/92 $10,000 $10,000
12/31/92 $10,688 $10,659
03/31/93 $10,551 $11,044
06/30/93 $10,173 $11,057
09/30/93 $10,165 $11,435
12/31/93 $10,608 $11,574
03/31/94 $10,166 $11,077
06/30/94 $10,035 $10,922
09/30/94 $10,690 $11,445
12/31/94 $10,851 $11,283
03/31/95 $11,866 $12,227
06/30/95 $13,078 $13,291
09/30/95 $14,224 $14,429
12/31/95 $14,828 $15,051
03/31/96 $15,660 $15,819
06/30/96 $16,823 $16,432
08/31/96 $16,424 $15,988
Past performance is not predictive of future performance.
The chart compares a $10,000 investment made in Investment Class shares of
the portfolio on September 30, 1992 (the date of the portfolio's inception) to a
$10,000 investment made in the Index on that date. All dividends and capital
gain distributions are reinvested. Further information relating to the
portfolio's performance, including expense reimbursements, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in this
report. Because the portfolio's Institutional Class shares did not commence
operations until July 15, 1996, no comparative performance is shown for such
shares.
The portfolio represents a specific segment of the stock market. The Index
consists of almost all publicly-traded stocks in the United States, and is a
widely-accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees and other expenses.
TOP TEN HOLDINGS
(as of August 31, 1996)
1. General Electric Company 6. Johnson & Johnson
2. Coca-Cola Company 7. Intel Corporation
3. AT&T Corporation 8. Wal-Mart Stores, Inc.
4. Merck & Company, Inc. 9. Procter & Gamble Company
5. Microsoft Corporation 10. American International Group, Inc.
5
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LARGE COMPANY VALUE PORTFOLIO [LOGO]
- --------------------------------------------------------------------------------
FUND COMMENTARY
Large Company Value Portfolio focuses on companies with relatively large
market capitalizations and financial characteristics commonly associated with
value companies. Gaining 17.52%, the portfolio benefited more from its large
company orientation than its exposure to value factors during the past fiscal
year. Large company stocks outperformed small company stocks by 6 percentage
points in the year ended August 31, 1996. The portfolio's value exposure added
only another 1/2 of 1% to its return. The portfolio fared quite a bit better in
June and July of 1996 when technology stocks took their hit. The big performance
plus for the portfolio during the past fiscal year came from the banking
industry, traditionally heavily weighted in a value portfolio. This industry,
the largest weighting in the portfolio representing over one quarter of its
market value at the start of the fiscal year, was up over 30% during the fiscal
year. BankAmerica Corporation, NationsBank Corporation and Chase Manhattan
Corporation were among the significant contributors from this sector.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------
AVERAGE ANNUAL WITHOUT
TOTAL RETURN* ACTUAL WAIVERS
------------- ------ -------
<S> <C> <C>
Inception (9/30/92) through 8/31/96 13.76% 13.21%
Year Ended 8/31/96 17.52% 17.40%
* Assumes the reinvestment of all dividends and distributions.
</TABLE>
IMPORTANT FUND INFORMATION1
(AS OF AUGUST 31, 1996)
<TABLE>
<CAPTION>
<S> <C>
CURRENT YIELD 3.90%
AVERAGE 5-YEAR EARNINGS GROWTH 12.35%
AVERAGE 5-YEAR RETURN ON EQUITY 15.59%
AVERAGE BOOK/PRICE RATIO 54.9%
</TABLE>
1 All averages are dollar weighted averages. The 5-year numbers are
calculated based on the results for the 5-year period ended August 31, 1996
for those securities in the portfolio's holdings as of August 31, 1996
whose issuers have been in existence for at least 5 years. The average
book/price ratio is calculated based on the book value of each portfolio
security as of the end of its most recent fiscal year.
6
- --------------------------------------------------------------------------------
LARGE COMPANY VALUE PORTFOLIO -- (CONTINUED) [LOGO]
- --------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
INVESTMENT CLASS SHARES OF LARGE COMPANY VALUE
PORTFOLIO AND THE WILSHIRE 5000 INDEX
[Line Chart Depicting Value Below]
LARGE COMPANY
VALUE PORTFOLIO WILSHIRE 5000 INDEX
---------------- -------------------
09/30/92 $10,000 $10,000
12/31/92 $10,552 $10,659
03/31/93 $11,491 $11,044
06/30/93 $11,734 $11,057
09/30/93 $12,350 $11,435
12/31/93 $11,951 $11,574
03/31/94 $11,333 $11,077
06/30/94 $11,265 $10,922
09/30/94 $11,375 $11,445
12/31/94 $11,335 $11,283
03/31/95 $12,382 $12,227
06/30/95 $13,412 $13,291
09/30/95 $14,837 $14,429
12/31/95 $15,861 $15,051
03/31/96 $16,605 $15,819
06/30/96 $16,670 $16,432
08/31/96 $16,568 $15,988
Past performance is not predictive of future performance.
The chart compares a $10,000 investment made in Investment Class shares of
the portfolio on September 30, 1992 (the date of the portfolio's inception) to a
$10,000 investment made in the Index on that date. All dividends and capital
gain distributions are reinvested. Further information relating to the
portfolio's performance, including expense reimbursements, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in this
report. Because the portfolio's Institutional Class shares did not commence
operations until July 15, 1996, no comparative performance is shown for such
shares.
The portfolio represents a specific segment of the stock market. The Index
consists of almost all publicly-traded stocks in the United States, and is a
widely-accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees and other expenses.
TOP TEN HOLDINGS
(as of August 31, 1996)
1. International Business 6. Amoco Corporation
Machines Corporation 7. Chase Manhattan Corporation
2. Ford Motor Company 8. BankAmerica Corporation
3. GTE Corporation 9. NationsBank Corporation
4. General Motors Corporation 10. Texaco Inc.
5. BellSouth Corporation
7
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
- --------------------------------------------------------------------------------
FUND COMMENTARY
Small Company Growth Portfolio focuses on companies with relatively small
market capitalizations and financial characteristics commonly associated with
growth companies. During the year ended August 31, 1996, small company stocks
generally underperformed large company stocks. While both groups did well in
absolute terms, large company stocks were up an average of 18.10% for the period
compared with 12.0% for small company stocks. Against this background, Small
Company Growth Portfolio performed quite well with a return of 17.50% for the
fiscal year ended August 31, 1996. The business services industry gained 27.10%
during the period and was led by such stocks as DeVRY, Inc. (a small position in
the portfolio, but up 108%) and SunGard Data Systems, Inc., up 54% during the
period. This industry represented over 9% of the portfolio's market value at the
start of the fiscal year. Interestingly, utilities and finance, two sectors
normally associated with value portfolios rather than growth portfolios, were
the two top performing sectors, up 48% and 53%, respectively. Their combined
weight in the portfolio was just over 8%. Technology, the largest sector in the
portfolio, was down 3.3% for the fiscal year. The range of returns in the
technology sector, however, was substantial with the stocks of Electronics for
Imaging, Inc. and Aspect Telecommunications Corporation more than doubling in
value while small positions in Three-Five Systems and Kulicke & Soffa
Industries, Inc. failed to meet expectations.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------
AVERAGE ANNUAL WITHOUT
TOTAL RETURN* ACTUAL WAIVERS
------------- ------ -------
<S> <C> <C>
Inception (10/1/92) through 8/31/96 18.67% 18.08%
Year Ended 8/31/96 17.50% 17.42%
* Assumes the reinvestment of all dividends and distributions.
</TABLE>
IMPORTANT FUND INFORMATION1
(AS OF AUGUST 31, 1996)
<TABLE>
<CAPTION>
<S> <C>
CURRENT YIELD 0.14%
AVERAGE 5-YEAR EARNINGS GROWTH 16.44%
AVERAGE 5-YEAR RETURN ON EQUITY 14.70%
AVERAGE BOOK/PRICE RATIO 34.8%
</TABLE>
1 All averages are dollar weighted averages. The 5-year numbers are
calculated based on the results for the 5-year period ended August 31, 1996
for those securities in the portfolio's holdings as of August 31, 1996
whose issuers have been in existence for at least 5 years. The average
book/price ratio is calculated based on the book value of each portfolio
security as of the end of its most recent fiscal year.
8
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SMALL COMPANY GROWTH PORTFOLIO -- (Continued) [LOGO]
- --------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
INVESTMENT CLASS SHARES OF SMALL COMPANY GROWTH
PORTFOLIO AND THE WILSHIRE 5000 INDEX
SMALL COMPANY
GROWTH PORTFOLIO WILSHIRE 5000 INDEX
---------------- -------------------
09/30/92 $10,000 $10,000
12/31/92 $11,872 $10,659
03/31/93 $11,872 $11,044
06/30/93 $12,257 $11,057
09/30/93 $13,403 $11,435
12/31/93 $13,738 $11,574
03/31/94 $13,264 $11,077
06/30/94 $12,148 $10,922
09/30/94 $13,501 $11,445
12/31/94 $13,548 $11,283
03/31/95 $14,678 $12,227
06/30/95 $15,593 $13,291
09/30/95 $17,108 $14,429
12/31/95 $17,364 $15,051
03/31/96 $18,459 $15,819
06/30/96 $19,649 $16,432
08/31/96 $19,544 $15,988
Past performance is not predictive of future performance.
The chart compares a $10,000 investment made in Investment Class shares of
the portfolio on October 1, 1992 (the date of the portfolio's inception) to a
$10,000 investment made in the Index on that date. For comparative purposes, the
value of the Index on September 30, 1992 is used as the beginning value for the
portfolio. All dividends and capital gain distributions are reinvested. Further
information relating to the portfolio's performance, including expense
reimbursements, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report. Because the portfolio's
Institutional Class shares did not commence operations until July 15, 1996, no
comparative performance is shown for such shares.
The portfolio represents a specific segment of the stock market. The Index
consists of almost all publicly-traded stocks in the United States, and is a
widely-accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees and other expenses.
TOP TEN HOLDINGS
(as of August 31, 1996)
1. Robert Half International, Inc. 6. California Energy, Inc.
2. Catalina Marketing Corporation 7. SCI Systems, Inc.
3. St. John Knits, Inc. 8. Oakwood Homes Corporation
4. United Companies 9. Jones Apparel Group, Inc.
Financial Corporation 10. Lone Star Steakhouse & Saloon
5. VeriFone, Inc.
9
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SMALL COMPANY VALUE PORTFOLIO [LOGO]
- --------------------------------------------------------------------------------
FUND COMMENTARY
Small Company Value Portfolio focuses on companies with relatively small
market capitalizations and financial characteristics commonly associated with
value companies. During the year ended August 31, 1996, small company stocks
underperformed large company stocks by more than 6 percentage points.
Additionally, stocks with value characteristics performed in line with stocks of
similar size. Small Company Value Portfolio, with a return of 10.01% during the
fiscal year ended August 31, 1996, underperformed small company stocks in
general by only 1/2 of 1%. For the full fiscal year growth stocks outperformed
value stocks. The June and July 1996 period was a particularly interesting one
for value investors. During the two month period, as technology stocks underwent
a major correction, Small Company Value Portfolio outperformed Small Company
Growth Portfolio by almost 7 1/2 percentage points, again showing the importance
of diversification across style.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------
AVERAGE ANNUAL WITHOUT
TOTAL RETURN* ACTUAL WAIVERS
------------- ------ -------
<S> <C> <C>
Inception (9/30/92) through 8/31/96 10.39% 9.99%
Year Ended 8/31/96 10.01% 9.94%
* Assumes the reinvestment of all dividends and distributions.
</TABLE>
IMPORTANT FUND INFORMATION1
(AS OF AUGUST 31, 1996)
<TABLE>
<CAPTION>
<S> <C>
CURRENT YIELD 3.80%
AVERAGE 5-YEAR EARNINGS GROWTH 7.71%
AVERAGE 5-YEAR RETURN ON EQUITY 11.57%
AVERAGE BOOK/PRICE RATIO 66.7%
</TABLE>
1 All averages are dollar weighted averages. The 5-year numbers are
calculated based on the results for the 5-year period ended August 31, 1996
for those securities in the portfolio's holdings as of August 31, 1996
whose issuers have been in existence for at least 5 years. The average
book/price ratio is calculated based on the book value of each portfolio
security as of the end of its most recent fiscal year.
10
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO -- (Continued) [LOGO]
- --------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
INVESTMENT CLASS SHARES OF SMALL COMPANY VALUE
PORTFOLIO AND THE WILSHIRE 5000 INDEX
SMALL COMPANY
VALUE PORTFOLIO WILSHIRE 5000 INDEX
---------------- -------------------
09/30/92 $10,000 $10,000
12/31/92 $10,792 $10,659
03/31/93 $11,762 $11,044
06/30/93 $11,544 $11,057
09/30/93 $12,223 $11,435
12/31/93 $11,996 $11,574
03/31/94 $11,494 $11,077
06/30/94 $11,494 $10,922
09/30/94 $11,720 $11,445
12/31/94 $11,451 $11,283
03/31/95 $11,998 $12,227
06/30/95 $12,806 $13,291
09/30/95 $13,779 $14,429
12/31/95 $14,331 $15,051
03/31/96 $14,710 $15,819
06/30/96 $14,895 $16,432
08/31/96 $14,729 $15,988
Past performance is not predictive of future performance.
The chart compares a $10,000 investment made in Investment Class shares of
the portfolio on September 30, 1992 (the date of the portfolio's inception) to a
$10,000 investment made in the Index on that date. All dividends and capital
gain distributions are reinvested. Further information relating to the
portfolio's performance, including expense reimbursements, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in this
report. Because the portfolio's Institutional Class shares did not commence
operations until July 15, 1996, no comparative performance is shown for such
shares.
The portfolio represents a specific segment of the stock market. The Index
consists of almost all publicly-traded stocks in the United States, and is a
widely-accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees and other expenses.
TOP TEN HOLDINGS
(as of August 31, 1996)
1. American Water Works Inc. 6. Idaho Power Company
2. Central Fidelity Banks Inc. 7. CIPSCO Inc.
3. First Commerce Corporation 8. People's Energy Corporation
4. Compass Bancshares Inc. 9. Rayonier Inc.
5. Mercantile Bankshares 10. Ohio Casualty Corporation
11
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WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- 100.4%
AEROSPACE & DEFENSE -- 1.7%
2,700 McDonnell Douglas Corporation $135,337
3,200 Raytheon Company 164,800
2,900 Rockwell International Corporation 150,800
-------
450,937
-------
AIR TRANSPORTATION -- 0.2%
2,000 Southwest Airlines Company 45,750
-------
APPAREL -- 1.1%
1,900 Nike, Inc., Class B 205,200
1,000 Reebok International Limited 36,000
900 Unifi, Inc. 24,637
700 V.F. Corporation 41,125
-------
306,962
-------
BANKS -- 1.0%
1,400 Fifth Third Bancorp 74,200
1,000 Firstar Corporation 47,250
600 Northern Trust Corporation 39,375
1,100 State Street Boston Corporation 59,537
1,600 Synovus Financial Corporation 38,200
-------
258,562
-------
BUSINESS MACHINES -- 10.0%
700 Adaptec, Inc.+ 34,913
2,500 Bay Networks, Inc.+ 68,750
700 BMC Software, Inc.+ 52,150
1,000 Cabletron Systems, Inc.+ 61,000
900 Ceridian Corporation+ 38,363
7,500 Cisco Systems, Inc.+ 395,625
3,600 Compaq Computer Corporation+ 203,850
600 Compuware Corporation+ 25,800
1,200 Dell Computer Corporation+ 80,550
600 Diebold, Inc. 30,825
1,000 Gateway 2000, Inc.+ 44,563
</TABLE>
See Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BUSINESS MACHINES -- (CONTINUED)
600 Input/Output, Inc.+ $ 21,225
7,800 Microsoft Corporation+ 955,500
4,900 Novell, Inc.+ 51,144
8,500 Oracle Systems Corporation+ 299,625
2,000 Pitney Bowes, Inc. 96,500
1,400 Seagate Technology, Inc.+ 67,200
2,300 Sun Microsystems, Inc.+ 125,063
1,000 Sybase, Inc.+ 16,109
---------
2,668,755
---------
BUSINESS SERVICES -- 2.8%
3,600 Automatic Data Processing, Inc. 149,850
600 Cintas Corporation 32,550
4,750 Computer Associates International, Inc. 249,375
900 Ecolab, Inc. 27,338
2,100 Equifax, Inc. 53,550
1,100 Interpublic Group of Companies, Inc. 49,775
1,000 Omnicom Group, Inc. 45,375
1,700 Parametric Technology Corporation+ 76,978
600 Reynolds & Reynolds Company, Class A 30,075
600 SunGard Data Systems, Inc.+ 25,650
500 Synopsys, Inc.+ 19,000
---------
759,516
---------
CHEMICALS -- 1.5%
1,500 Air Products & Chemicals, Inc. 82,125
1,100 Eastman Chemical Company 61,463
700 Great Lakes Chemical Corporation 40,250
400 Loctite Corporation 17,550
2,000 Morton International, Inc. 74,250
2,100 Praxair, Inc. 86,362
700 Sigma-Aldrich Corporation 36,925
---------
398,925
---------
</TABLE>
See Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
CONSTRUCTION -- 0.7%
1,225 Clayton Homes, Inc. $ 24,653
1,100 Fluor Corporation 70,400
1,200 Sherwin-Williams Company 52,500
500 Vulcan Materials Company 28,937
-------
176,490
-------
CONSUMER DURABLES -- 0.6%
900 Hillenbrand Industries, Inc. 29,138
1,200 Leggett & Platt, Inc. 34,200
2,100 Newell Company, Inc. 65,363
1,100 Viking Office Products, Inc.+ 28,462
-------
157,163
-------
CONTAINERS -- 0.2%
700 Bemis Company 20,912
1,200 Sonoco Products Company 35,550
-------
56,462
-------
COSMETICS -- 4.9%
2,000 Colgate-Palmolive Company 162,500
5,800 Gillette Company 369,750
8,900 Procter & Gamble Company 790,987
---------
1,323,237
---------
DRUGS & MEDICINE -- 15.3%
10,300 Abbott Laboratories 464,788
900 Allergan, Inc. 34,987
3,600 Amgen, Inc.+ 209,700
800 Bard (C.R.), Inc. 24,800
1,800 Becton, Dickinson & Company 73,575
1,500 Biomet, Inc.+ 23,438
2,400 Boston Scientific Corporation+ 110,100
900 Cardinal Health, Inc. 66,037
6,000 Columbia/HCA Healthcare Corporation 338,250
600 Forest Laboratories, Inc.+ 24,675
</TABLE>
See Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
DRUGS & MEDICINE -- (CONTINUED)
800 Foundation Health Corporation+ $ 24,000
1,400 Health Management Associates, Inc., Class A+ 31,850
500 HealthCare COMPARE Corporation+ 21,375
1,600 IVAX Corporation 25,800
17,700 Johnson & Johnson 871,725
800 Manor Care, Inc. 27,500
2,900 Medtronic, Inc. 150,800
16,100 Merck & Company, Inc. 1,056,563
1,600 Mylan Laboratories, Inc. 26,200
1,800 Rhone-Poulenc Rorer, Inc. 126,675
5,000 Schering-Plough Corporation 279,375
1,100 St. Jude Medical, Inc.+ 39,462
1,300 Stryker Corporation+ 31,769
900 Vencor, Inc.+ 28,238
---------
4,111,682
---------
ELECTRONICS -- 9.2%
900 ADC Telecommunications, Inc.+ 51,075
600 Altera Corporation+ 26,400
850 Andrew Corporation+ 37,825
2,400 Applied Materials, Inc.+ 58,200
1,300 Atmel Corporation+ 33,637
3,100 EMC Corporation+ 59,675
800 Glenayre Technologies, Inc.+ 29,400
13,200 Hewlett-Packard Company 577,500
10,700 Intel Corporation 853,994
1,000 Linear Technology Corporation 34,000
800 Maxim Integrated Products, Inc.+ 24,550
2,800 Micron Technology, Inc. 63,700
7,800 Motorola, Inc. 416,325
600 Perkin-Elmer Corporation 31,125
1,200 Tellabs, Inc.+ 76,050
1,096 U.S. Robotics Corporation+ 57,540
400 Varian Associates, Inc. 18,250
</TABLE>
See Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- (CONTINUED)
994 Xilinx, Inc.+ $ 34,790
----------
2,484,036
----------
ENERGY -- RAW MATERIALS -- 0.5%
2,400 Dresser Industries, Inc. 69,600
2,100 Enron Oil & Gas Company 54,337
----------
123,937
----------
FINANCE -- 3.9%
550 Advanta Corporation, Class A 26,881
1,400 Countrywide Credit Industries, Inc. 33,775
2,000 Dean Witter Discover & Company 100,000
800 First USA, Inc. 42,400
1,100 Franklin Resources, Inc. 65,450
1,500 Green Tree Acceptance Corporation 52,125
1,300 Household International, Inc. 103,025
3,000 MBNA Corporation 91,125
2,299 Mercury Finance Company 26,726
2,300 Merrill Lynch & Company, Inc. 140,875
800 Price (T. Rowe) Associates, Inc. 23,200
2,400 Schwab (Charles) Corporation 60,000
6,150 Travelers Group, Inc. 266,756
----------
1,032,338
----------
FOOD & AGRICULTURE -- 11.5%
3,200 Campbell Soup Company 208,400
32,800 Coca-Cola Company 1,640,000
1,000 Hershey Foods Corporation 87,125
1,000 Hormel Foods Corporation 21,250
1,300 IBP, Inc. 30,387
2,900 Kellogg Company 195,750
20,400 PepsiCo, Inc. 586,500
1,150 Pioneer Hi-Bred International, Inc. 63,394
1,800 Quaker Oats Company 59,175
</TABLE>
See Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FOOD & AGRICULTURE -- (CONTINUED)
2,500 Sysco Corporation $ 80,313
1,400 Whitman Corporation 31,325
1,600 Wrigley (WM.) Jr. Company 86,600
----------
3,090,219
----------
INSURANCE -- 3.6%
1,837 AFLAC, Inc. 63,147
6,275 American International Group, Inc. 596,125
1,000 General Re Corporation 144,875
800 MGIC Investment Corporation 50,700
1,000 Progressive Corporation of Ohio 54,375
700 SunAmerica, Inc. 47,687
----------
956,909
----------
LIQUOR -- 1.0%
3,400 Anheuser-Busch Companies, Inc. 257,550
----------
MEDIA -- 1.0%
600 Belo (A.H.) Corporation, Series A 24,075
1,900 Gannet Company, Inc. 127,300
1,300 Gaylord Entertainment Company, Class A 31,850
1,500 Readers Digest Association, Inc., Class A 60,562
100 Washington Post Company 32,325
----------
276,112
----------
MOTOR VEHICLES -- 0.4%
1,000 Eaton Corporation 55,374
1,000 Harley-Davidson, Inc. 41,000
----------
96,374
----------
NON-DURABLE & ENTERTAINMENT -- 3.3%
800 Cracker Barrel Old Country Store, Inc. 18,700
1,600 Duracell International, Inc. 72,200
500 Fastenal Company 23,375
1,200 Hasbro, Inc. 44,100
</TABLE>
See Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
NON-DURABLE & ENTERTAINMENT -- (CONTINUED)
1,700 International Game Technology $ 34,638
3,725 Mattel, Inc. 98,247
9,200 McDonald's Corporation 426,650
600 Outback Steakhouse, Inc.+ 16,950
1,400 Service Corporation International 78,925
1,000 Starbucks Corporation+ 32,750
1,700 Wendy's International, Inc. 34,425
----------
880,960
----------
NON-FERROUS METALS -- 0.1%
1,900 Engelhard Corporation 38,712
----------
PRODUCER GOODS -- 10.3%
3,600 AlliedSignal, Inc. 222,300
1,500 Dover Corporation 65,813
2,800 Emerson Electric Company 234,500
500 Foster Wheeler Corporation 21,563
21,800 General Electric Company 1,812,125
700 Grainger (W.W.), Inc. 47,250
1,600 Illinois Tool Works, Inc. 110,600
1,500 Ingersoll-Rand Company 64,125
600 Johnson Controls, Inc. 42,300
600 Millipore Corporation 22,950
1,500 Pall Corporation 35,250
700 Solectron Corporation+ 26,162
1,218 Thermo Instrument Systems, Inc.+ 47,197
----------
2,752,135
----------
RETAIL -- 9.4%
3,100 Albertsons, Inc. 131,363
2,000 American Stores Company 82,250
2,000 AutoZone, Inc.+ 54,500
900 Bed Bath & Beyond, Inc.+ 20,363
1,300 Circuit City Stores, Inc. 40,950
600 Consolidated Stores Corporation+ 22,800
</TABLE>
See Notes to Financial Statements.
18
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
2,550 CUC International, Inc.+ $ 87,656
931 Dollar General Corporation 30,025
3,900 Gap, Inc. 136,500
6,166 Home Depot, Inc. 327,569
1,000 Kohl's Corporation+ 38,000
3,700 Limited, Inc. 68,450
3,100 May Department Stores Company 141,050
1,100 Nordstrom, Inc. 42,900
2,100 Office Depot, Inc.+ 33,338
3,000 Penney (J.C.) Company, Inc. 158,625
800 Pep Boys-Manny, Moe, & Jack 26,800
3,700 Toys 'R' Us, Inc.+ 109,150
30,000 Wal-Mart Stores, Inc. 795,000
3,300 Walgreen Company 108,900
2,100 Winn-Dixie Stores, Inc. 72,187
---------
2,528,376
---------
SHIPPING -- 0.2%
850 Illinois Central Corporation 25,713
700 Wisconsin Central Transportation Corporation+ 24,675
---------
50,388
---------
STEEL -- 0.3%
1,200 Nucor Corporation 56,100
1,200 Worthington Industries, Inc. 24,300
---------
80,400
---------
TELEPHONE -- 4.1%
21,100 AT&T Corporation 1,107,750
---------
TIRE & RUBBER -- 0.6%
1,100 Cooper Tire & Rubber Company 21,450
800 Danaher Corporation 33,200
2,100 Goodyear Tire & Rubber Company 95,813
---------
150,463
---------
</TABLE>
See Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
TRAVEL & RECREATION -- 0.9%
900 Callaway Golf Company $ 29,700
3,800 Carnival Corporation 107,350
1,400 Circus Circus Enterprises, Inc.+ 47,600
2,400 Mirage Resorts, Inc.+ 55,800
-----------
240,450
-----------
UTILITIES -- 0.1%
1,000 AES Corporation+ 35,500
-----------
TOTAL COMMON STOCKS (Cost $21,316,749) 26,897,050
===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
TOTAL INVESTMENTS (COST $21,316,749*) 100.4% 26,897,050
OTHER ASSETS AND LIABILITIES (NET) (0.4) (99,719)
------ ------------
NET ASSETS 100.0% $ 26,797,331
===========
</TABLE>
- ---------
* Aggregate cost for Federal tax purposes was $21,375,176.
+ Non-income producing security.
See Notes to Financial Statements.
20
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- 100.0%
AEROSPACE & DEFENSE -- 1.5%
1,800 B.F. Goodrich Company $ 67,500
2,100 General Dynamics Corporation 134,662
1,900 Northrop Corporation 136,325
2,300 Textron Inc. 196,363
----------
534,850
----------
APPAREL -- 0.3%
2,100 V.F. Corporation 123,375
----------
BANKS -- 24.2%
14,890 Banc One Corporation 571,404
1,350 Bancorp Hawaii Inc. 51,131
12,300 BankAmerica Corporation 953,250
3,807 Bank of Boston Corporation 200,819
12,800 Bank of New York Inc. 356,800
3,200 Barnett Banks Inc. 210,000
5,300 Boatmen's Bancshares Inc. 282,225
14,392 Chase Manhattan Corporation 1,070,405
3,900 Comerica Inc. 190,125
1,400 Crestar Financial Corporation 81,375
10,587 First Chicago NBD 451,271
2,100 First of America Bank Corporation 99,225
1,350 First Security Corporation 36,787
2,200 First Tennessee National Corporation 75,075
9,575 First Union Corporation 611,603
2,500 Firstar Corporation 118,125
7,728 KeyCorp 310,086
4,600 Mellon Bank Corporation 254,725
2,100 Mercantile Bancorp 102,637
6,300 Morgan (J.P.) & Company 552,037
7,300 National City Corporation 274,663
9,900 NationsBank Corporation 842,738
1,452 Old Kent Financial Corporation 58,625
2,100 Regions Financial Corporation 96,075
1,900 Republic New York Corporation 125,637
</TABLE>
See Notes to Financial Statements.
21
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
1,900 Signet Banking Corporation $ 45,837
3,100 SouthTrust Corporation 91,450
1,000 Star Banc Corporation 78,750
3,100 Summit Bancorp 120,125
5,700 Wachovia Corporation 260,775
----------
8,573,780
----------
BUSINESS MACHINES -- 5.8%
17,900 International Business Machines Corporation 2,047,312
----------
BUSINESS SERVICES -- 0.7%
7,000 Browning-Ferris Industries Inc. 178,500
1,600 National Service Industries Inc. 60,800
----------
239,300
----------
CHEMICALS -- 2.8%
3,300 ARCO Chemical Company 158,812
8,200 Dow Chemical Company 653,950
2,000 Lubrizol Corporation 56,750
800 Olin Corporation 63,400
1,900 Witco Corporation 57,475
----------
990,387
----------
CONSTRUCTION -- 0.2%
1,200 Vulcan Materials Company 69,450
----------
DOMESTIC OIL -- 0.7%
2,400 Sun Company, Inc. 56,700
9,513 USX-Marathon Group 198,584
----------
255,284
----------
ELECTRONICS -- 0.2%
1,300 Harris Corporation 79,950
----------
</TABLE>
See Notes to Financial Statements.
22
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ENERGY -- 2.6%
3,000 CMS Energy Corporation $ 89,625
5,900 Dominion Resources Inc. 220,512
3,500 DPL Inc. 82,687
2,600 DQE 72,150
4,800 DTE Energy Company 136,800
5,000 PanEnergy Corporation 165,625
7,300 PECO Energy Company 171,550
----------
938,949
----------
ENERGY -- RAW MATERIALS -- 0.7%
10,500 Occidental Petroleum Corporation 244,125
----------
FINANCE -- 1.2%
3,800 Ahmanson (H.F.) & Company 95,950
4,056 Bear Stearns Company Inc. 94,809
2,000 Edwards (A.G.), Inc. 56,000
4,500 Great Western Financial Corporation 111,375
3,200 Paine Webber Group 66,000
----------
424,134
----------
FOOD & AGRICULTURE -- 0.2%
2,200 Supervalu Inc. 61,875
----------
INSURANCE -- 4.2%
6,800 American General Corporation 248,200
5,900 Chubb Corporation 261,812
2,400 Jefferson-Pilot Corporation 123,300
3,400 Lincoln National Corporation 150,450
3,200 Providian Corporation 132,400
600 ReliaStar Financial Corporation 26,475
4,100 SAFECO Corporation 135,813
2,800 St. Paul Companies Inc. 144,900
2,400 Torchmark Corporation 102,000
2,300 Transamerica Corporation 156,688
----------
1,482,038
----------
</TABLE>
See Notes to Financial Statements.
23
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
INTERNATIONAL OIL -- 5.4%
16,400 Amoco Corporation $ 1,131,600
8,700 Texaco Inc. 772,125
-----------
1,903,725
-----------
MEDIA -- 0.6%
3,300 Dow Jones & Company Inc. 129,113
3,200 New York Times Company, Class A 100,000
-----------
229,113
-----------
MOTOR VEHICLES -- 9.9%
24,700 Chrysler Corporation 719,388
600 Cummins Engine Inc. 22,575
2,600 Eaton Corporation 143,975
2,100 Echlin Inc. 64,050
38,800 Ford Motor Company 1,299,800
25,000 General Motors Corporation 1,243,750
-----------
3,493,538
-----------
NON-DURABLE & ENTERTAINMENT -- 0.2%
2,400 American Greetings Corporation, Class A 61,800
-----------
NON-FERROUS METALS -- 0.7%
2,200 Phelps Dodge Corporation 133,100
2,100 Reynolds Metals Company 112,350
-----------
245,450
-----------
PAPER & FOREST PRODUCTS -- 4.3%
1,500 Consolidated Papers 77,250
3,000 Georgia-Pacific Corporation 223,125
10,000 International Paper Company 400,000
1,800 Mead Corporation 103,050
1,900 Temple-Inland Inc. 93,813
2,300 Union Camp Corporation 111,550
3,300 Westvaco Corporation 94,462
6,700 Weyerhaeuser Company 298,988
</TABLE>
See Notes to Financial Statements.
24
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PAPER & FOREST PRODUCTS -- (CONTINUED)
1,900 Willamette Industries Inc. $ 117,325
----------
1,519,563
----------
PRODUCER GOODS -- 0.9%
3,600 Cooper Industries Inc. 145,800
1,400 Johnson Controls, Inc. 98,700
1,400 Snap-On Inc. 63,875
----------
308,375
----------
RETAIL -- 2.6%
7,200 Dayton Hudson Corporation 248,400
8,900 Limited Inc 164,650
7,600 Penney (J.C.) Company Inc. 401,850
2,800 Rite Aid Corporation 89,250
----------
904,150
----------
SHIPPING -- 1.5%
2,600 Conrail Inc. 177,125
4,200 Norfolk Southern Corporation 350,175
----------
527,300
----------
TELEPHONE -- 11.4%
32,800 BellSouth Corporation 1,189,000
32,400 GTE Corporation 1,275,750
14,700 NYNEX Corporation 633,937
14,200 Pacific Telesis Group 459,725
15,600 US West Communications Group 460,200
----------
4,018,612
----------
TIRE & RUBBER -- 0.7%
5,200 Goodyear Tire & Rubber Company 237,250
----------
TOBACCO -- 0.7%
6,100 American Brands 247,813
----------
</TABLE>
See Notes to Financial Statements.
25
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
TRAVEL & RECREATION -- 0.2%
3,200 Brunswick Corporation $ 67,600
----------
TRUCKING & FREIGHT -- 0.2%
2,600 Ryder System Inc. 73,775
----------
UTILITIES -- 15.4%
4,000 Allegheny Power System Inc. 118,500
6,300 American Electric Power Inc. 261,450
4,900 Baltimore Gas & Electric Company 127,400
5,100 Carolina Power & Light Company 177,862
6,900 Central & South West Corporation 181,987
7,800 Consolidated Edison Company New York Inc. 203,775
6,900 Duke Power Company 322,575
14,700 Edison International 255,412
3,800 Enova Corporation 86,925
7,500 Entergy Corporation 190,313
3,100 Florida Progress Corporation 107,338
6,100 FPL Group Inc. 269,925
4,000 General Public Utilities Corporation 126,000
8,700 Houston Industries 189,225
2,500 Illinova Corporation 65,312
1,850 IPALCO Enterprises Inc. 49,950
3,900 Long Island Lighting Company 67,275
2,200 New England Electric System 71,775
2,400 New York State Electric & Gas 51,600
2,100 NIPSCO Industries Inc. 77,700
4,200 Northeast Utilities 53,550
2,300 Northern States Power 104,938
5,000 Ohio Edison Company 105,000
1,400 Oklahoma Gas & Electric 56,700
2,800 Pacific Enterprises 83,650
13,700 Pacific Gas & Electric Company 309,963
9,700 PacifiCorp 195,212
2,900 Pinnacle West Capital Corporation 83,375
</TABLE>
See Notes to Financial Statements.
26
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
5,300 PP&L Resources Inc. $ 119,250
2,100 Public Service Company of Colorado 74,812
8,000 Public Service Enterprise 217,000
2,100 Puget Sound Power & Light 48,038
3,400 SCANA Corporation 92,650
22,100 Southern Company 500,013
7,300 Unicom Corporation 167,900
3,300 Union Electric Company 123,338
2,100 Western Resources Inc. 61,688
3,600 Wisconsin Energy Corporation 99,000
-----------
5,498,376
-----------
TOTAL COMMON STOCKS (Cost $32,611,321) 35,401,249
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $32,611,321* ) 100.0% 35,401,249
OTHER ASSETS AND LIABILITIES (NET) (0.0) (16,559)
----- ------------
NET ASSETS 100.0% $ 35,384,690
===== ============
</TABLE>
- --------
* Aggregate cost for Federal tax purposes was $32,662,253.
See Notes to Financial Statements.
27
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- 99.3%
AIR TRANSPORTATION -- 2.7%
14,600 America West Airlines, Inc., Class B+ $ 195,275
14,400 Comair Holdings, Inc. 345,600
3,700 Offshore Logistics, Inc.+ 46,250
-----------
587,125
-----------
APPAREL -- 5.5%
1,000 Fabri-Centers of America, Class A+ 13,500
7,200 Jones Apparel Group, Inc.+ 398,700
6,300 Nautica Enterprises, Inc.+ 166,950
13,800 St. John Knits, Inc. 550,275
2,700 Wolverine World Wide, Inc. 65,137
-----------
1,194,562
-----------
BUSINESS MACHINES -- 9.3%
2,300 Auspex Systems, Inc.+ 36,225
700 BancTec, Inc.+ 13,650
4,700 Broderbund Software Corporation+ 141,588
1,800 Computer Products, Inc.+ 35,100
2,540 Comverse Technology, Inc.+ 89,535
12,975 Concord EFS, Inc.+ 327,619
1,100 Devon Group, Inc. (New)+ 30,800
1,800 Digi International, Inc.+ 25,650
1,400 Fair Issac & Company, Inc. 56,700
1,900 Fiserv, Inc.+ 64,362
38 Input/Output, Inc.+ 1,344
1,700 InterVoice, Inc.+ 23,163
2,550 Keane, Inc.+ 114,750
1,500 MICROS Systems, Inc.+ 37,500
4,700 Novellus Systems, Inc.+ 177,425
7,600 Picturetel Corporation+ 249,850
500 System Software Associates, Inc. 5,250
4,700 Tech Data Corporation+ 124,550
9,300 VeriFone, Inc.+ 444,075
-----------
1,999,136
-----------
</TABLE>
See Notes to Financial Statements.
28
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BUSINESS SERVICES -- 9.9%
8,900 American Management Systems, Inc.+ $ 225,838
4,000 Career Horizons, Inc.+ 139,500
1,100 CDI Corporation+ 28,462
2,200 DeVRY, Inc.+ 101,200
1,800 Hyperion Software Corporation+ 23,850
2 Information Resources, Inc.+ 25
10,100 Integrated Health Services, Inc. 232,300
500 Jacobs Engineering Group, Inc.+ 11,687
7,200 National Data Corporation 302,400
5,050 Paxar Corporation+ 104,788
7,400 STERIS Corporation+ 227,550
6,100 SunGard Data Systems, Inc.+ 260,775
4,100 Synopsys, Inc.+ 155,800
450 TCSI Corporation+ 10,800
4,600 ThermoTrex Corporation+ 173,075
4,700 United Waste Systems, Inc.+ 138,650
-----------
2,136,700
-----------
CHEMICALS -- 2.4%
15,800 Airgas, Inc.+ 355,500
5,750 Bio-Rad Laboratories, Inc.+ 161,000
-----------
516,500
-----------
CONSTRUCTION -- 4.9%
7,700 Lennar Corporation 172,287
3,100 Medusa Corporation 92,225
18,100 Oakwood Homes Corporation 425,350
10,100 Southdown, Inc. 234,825
7,700 Toll Brothers, Inc.+ 133,788
-----------
1,058,475
-----------
CONSUMER DURABLES -- 0.8%
5,300 Champion Enterprises, Inc.+ 100,700
4,700 Shorewood Packaging Corporation+ 79,900
-----------
180,600
-----------
</TABLE>
See Notes to Financial Statements.
29
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
DRUGS & MEDICINE -- 9.6%
2,000 Datascope Corporation+ $ 35,500
1,400 Greenfield Industries, Inc. 40,600
7,750 Health Care & Retirement Corporation+ 191,812
4,800 HealthCare COMPARE Corporation+ 205,200
12,600 Healthsource, Inc.+ 189,000
3,200 Jones Medical Industries, Inc. 128,000
10,500 Mid Atlantic Medical Services, Inc.+ 141,750
4,758 Nature's Sunshine Products, Inc. 107,055
2,800 Research Medical, Inc.+ 50,750
2,400 Respironics, Inc.+ 56,400
6,700 Rotech Medical Corporation+ 108,875
7,200 Sierra Health Services, Inc.+ 227,700
7,600 Sunrise Medical, Inc.+ 124,450
1,300 Tecnol Medical Products, Inc.+ 21,450
2,600 Thermedics, Inc.+ 70,850
1,700 Universal Health Services, Inc., Class B+ 43,350
11,200 Watson Pharmaceuticals, Inc.+ 324,800
-----------
2,067,542
-----------
ELECTRONICS -- 17.1%
3,900 Acxiom Corporation+ 148,200
4,100 Altron, Inc.+ 73,288
6,500 Aspect Telecommunications Corporation+ 338,000
3,000 Belden, Inc. 81,375
6,400 Checkpoint Systems, Inc.+ 184,800
1,700 Coherent, Inc.+ 66,725
7,900 Dallas Semiconductor Corporation 150,100
2,000 Electronics For Imaging, Inc.+ 126,500
4,200 Gentex Corporation+ 100,800
11,800 International Rectifier Corporation+ 225,675
4,600 Kent Electronics Corporation+ 101,775
2,600 Kulicke & Soffa Industries, Inc.+ 25,675
3,500 Marshall Industries+ 104,125
9,600 SCI Systems, Inc.+ 428,400
</TABLE>
See Notes to Financial Statements.
30
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- (Continued)
7,700 Silicon Valley Group, Inc.+ $ 139,562
7,500 Symbol Technologies, Inc.+ 333,750
3,000 Target Therapeutics, Inc.+ 97,500
3,400 Tech-Sym Corporation+ 94,350
8,800 Vicor Corporation+ 216,700
6,500 Watkins-Johnson Company 130,000
6,500 Western Digital Corporation+ 228,312
5,100 Wyle Electronics 164,475
5,073 Zilog, Inc.+ 131,264
-----------
3,691,351
-----------
ENERGY -- 2.0%
14,400 California Energy, Inc.+ 435,600
-----------
ENERGY -- RAW MATERIALS -- 1.7%
21,900 Nabors Industries, Inc.+ 325,762
1,000 Newpark Resources, Inc.+ 36,125
-----------
361,887
-----------
FINANCE -- 4.9%
2,000 Aames Financial Corporation 97,750
2,400 BET Holdings, Inc., Class A+ 61,500
200 Henry (Jack) & Associates 5,900
1,200 Insignia Financial Group, Inc., Class A+ 30,900
5,400 Money Store (The), Inc. 129,600
4,900 Olympic Financial Limited+ 120,050
1,000 Pioneer Group, Inc. 26,125
18,000 Robert Half International, Inc.+ 594,000
-----------
1,065,825
-----------
FOOD & AGRICULTURE -- 1.7%
2,800 Richfood Holdings, Inc. 106,400
7,500 Scotts Company (The), Class A+ 140,625
4,500 Smithfield Foods, Inc.+ 124,875
-----------
371,900
-----------
</TABLE>
See Notes to Financial Statements.
31
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
INSURANCE -- 6.5%
2,700 ABR Information Services, Inc.+ $ 152,550
10,150 American Travellers Corporation+ 315,919
8,150 Genesis Health Ventures, Inc.+ 207,825
1,100 Markel Corporation+ 96,800
7,500 UICI+ 173,437
12,200 United Companies Financial Corporation 463,600
-----------
1,410,131
-----------
MEDIA -- 0.7%
1,704 Chris-Craft Industries, Inc.+ 69,012
2,400 Regal Cinemas, Inc.+ 89,400
-----------
158,412
-----------
MOTOR VEHICLES -- 0.4%
4,800 Titan Wheel International, Inc. 73,200
-----------
NON-DURABLE & ENTERTAINMENT -- 6.0%
9,200 Acclaim Entertainment, Inc.+ 74,750
100 Applebee's International, Inc. 2,900
6,300 Bally Entertainment Corporation+ 171,675
6,600 Buffets, Inc.+ 90,750
11,600 Catalina Marketing Corporation+ 551,000
11,900 Lone Star Steakhouse & Saloon+ 394,188
-----------
1,285,263
-----------
NON-FERROUS METALS -- 0.3%
500 IMCO Recycling, Inc. 7,938
1,600 Mueller Industries, Inc.+ 56,600
-----------
64,538
-----------
OPTICAL & PHOTO -- 0.3%
2,600 Photronics, Inc.+ 72,150
-----------
PAPER & FOREST PRODUCTS -- 0.7%
2,900 Fibreboard Corporation+ 86,638
2,700 Lydall, Inc.+ 66,825
-----------
153,463
-----------
</TABLE>
See Notes to Financial Statements.
32
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PRODUCER GOODS -- 2.4%
4,200 Cognex Corporation+ $ 58,800
1,000 Ionics, Inc.+ 43,125
7,800 JLG Industries, Inc. 148,200
3,500 Lattice Semiconductor Corporation+ 99,313
950 Material Sciences Corporation+ 15,200
2,200 Thermo TerraTech, Inc.+ 25,850
4,900 U.S. Filter Corporation+ 128,012
-----------
518,500
-----------
RETAIL -- 2.5%
6,700 Claire's Stores, Inc. 221,100
3,300 Proffit's, Inc.+ 135,300
4,800 Ross Stores, Inc. 184,800
200 West Marine, Inc.+ 7,750
-----------
548,950
-----------
SHIPPING -- 0.5%
3,000 Wisconsin Central Transportation Corporation+ 105,750
-----------
STEEL -- 0.1%
900 RailTex, Inc.+ 19,800
-----------
TELEPHONE -- 1.5%
11,100 Octel Communications Corporation+ 323,288
900 U.S. Long Distance Corporation+ 6,975
-----------
330,263
-----------
TRAVEL & RECREATION -- 2.1%
12,850 Grand Casinos, Inc.+ 232,906
7,050 National Auto Credit, Inc.+ 81,075
3,900 Primadonna Resorts, Inc.+ 78,975
3,300 Rio Hotel & Casino, Inc.+ 57,338
-----------
450,294
-----------
</TABLE>
See Notes to Financial Statements.
33
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
TRUCKING & FREIGHT -- 1.8%
2,500 Expeditors International of Washington, Inc. $ 81,875
3,000 Fritz Companies, Inc.+ 44,625
2,449 Heartland Express, Inc.+ 69,797
6,300 M.S. Carriers, Inc.+ 137,025
3,000 Swift Transportation Company, Inc.+ 66,187
-----------
399,509
-----------
UTILITIES -- 1.0%
2,600 Global Industrial Technologies, Inc.+ 50,050
5,400 Primark Corporation+ 161,325
-----------
211,375
-----------
TOTAL COMMON STOCKS (Cost $19,714,593) 21,468,801
===========
CONVERTIBLE PREFERRED STOCK -- 0.2% (Cost $33,818)
1,440 FHP International, Series A 43,380
===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $19,748,411*) 99.5% 21,512,181
OTHER ASSETS AND LIABILITIES (NET) 0.5 114,538
----- ------------
NET ASSETS 100.0% $ 21,626,719
===== ============
</TABLE>
* Aggregate cost for Federal tax purposes was $19,880,010.
+ Non-income producing security.
See Notes to Financial Statements.
34
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- 98.8%
APPAREL -- 1.5%
5,700 Brown Group Inc. $ 108,300
4,600 Guilford Mills Inc. 104,075
6,500 Springs Industries Inc., Class A 293,312
-----------
505,687
-----------
BANKS -- 24.7%
5,475 Associated Banc Corp 217,631
6,750 BancorpSouth Inc. 148,500
4,900 CCB Financial Corporation 260,925
19,350 Central Fidelity Banks Inc. 454,725
7,700 Centura Banks Inc. 294,525
4,900 Citizens Bancorp Maryland 147,000
4,600 Citizens Banking Corporation Michigan 133,687
5,709 CNB Bancshares Inc. 159,138
3,588 Commerce Bancorp Inc. 87,906
12,300 Compass Bancshares Inc. 413,588
7,200 Cullen Frost Bankers Inc. 205,200
9,800 Dauphin Deposit Corporation 276,850
6,200 Deposit Guaranty Corporation 285,975
6,102 F & M National Corporation 110,599
3,400 FirstBank of Illinois Corporation 102,850
12,200 First Commerce Corporation 436,150
7,100 First Commonwealth Financial 132,238
10,100 First Hawaiian Inc. 297,950
8,141 First Michigan Bank Corporation 200,472
3,700 Fort Wayne National Corporation 117,475
9,995 Fulton Financial Corporation 189,905
4,200 HUBCO Inc. 87,150
4,900 Jefferson Bankshares 113,312
12,200 Keystone Financial Inc. 298,900
3,100 Liberty Bancorp Inc. 111,987
9,000 Magna Group, Inc. 223,875
5,200 Mark Twain Bancshares 201,500
15,300 Mercantile Bankshares 407,363
</TABLE>
See Notes to Financial Statements.
35
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
6,089 Mid-Am Inc. $ 114,930
3,800 New York Bancorp Inc. 115,900
8,000 North Fork Bancorp 248,000
4,400 ONBANCorp, Inc. 141,900
6,160 One Valley Bancorp Inc. 223,300
8,100 Peoples Heritage Financial Group 178,200
8,500 Provident Bancorp Inc. 342,125
2,700 Provident Bankshares 91,800
2,733 Queens County Bancorp 102,500
4,200 RCSB Financial Inc. 112,875
3,700 S & T Bancorp Inc. 114,700
4,200 Susquehanna Bancshares, Inc. 124,950
3,000 T.R. Financial Corporation 85,125
3,900 United Bancshares Inc. 113,587
7,750 United Carolina Bancshares Inc. 178,250
5,500 Whitney Holding Corporation 169,125
-----------
8,574,643
-----------
BUSINESS SERVICES -- 3.4%
6,000 ABM Industries Inc. 102,750
5,250 American Business Products 106,969
4,800 New England Business Service 74,400
11,100 PHH Corporation 320,513
18,600 Safety-Kleen Corporation 320,850
9,200 Standard Register Company 251,850
-----------
1,177,332
-----------
CHEMICALS -- 1.7%
7,700 Dexter Corporation 224,262
8,600 Ferro Corporation 224,675
2,500 NCH Corporation 139,063
-----------
588,000
-----------
CONSTRUCTION -- 0.9%
5,900 Interface Inc. 90,713
12,400 Kaufman & Broad Home Corporation 151,900
3,700 Lawson Products Inc. 79,550
-----------
322,163
-----------
</TABLE>
See Notes to Financial Statements.
36
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
CONSUMER DURABLES -- 2.3%
4,300 Bassett Furniture Inc. $ 102,663
6,800 Kimball International Inc., Class B 226,100
6,000 La-Z Boy Chair Company 177,000
2,400 National Presto Industries 87,600
6,400 Outboard Marine Corporation 107,200
3,400 Skyline Corporation 86,275
-----------
786,838
-----------
COSMETICS -- 0.3%
3,200 Chemed Corporation 118,800
-----------
DOMESTIC OIL -- 0.7%
9,400 Diamond Shamrock, Inc. 257,325
-----------
DRUGS & MEDICINE -- 1.2%
6,474 Block Drug Inc., Class A 288,093
5,300 West Company, Inc. 132,500
-----------
420,593
-----------
ELECTRONICS -- 0.7%
5,500 ADAC Laboratories 126,500
7,400 Gerber Scientific Inc. 102,675
-----------
229,175
-----------
ENERGY -- 3.3%
16,820 Atlantic Energy Inc. 298,555
5,100 Atmos Energy Corporation 116,663
6,900 Commonwealth Energy System 161,287
7,200 Indiana Energy Inc. 182,700
11,300 People's Energy Corporation 384,200
-----------
1,143,405
-----------
ENERGY -- RAW MATERIALS -- 1.2%
6,100 AMCOL International Corporation 88,450
4,300 Ashland Coal Inc. 101,588
6,500 Eastern Enterprises 238,063
-----------
428,101
-----------
</TABLE>
See Notes to Financial Statements.
37
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FINANCE -- 2.7%
9,600 First Financial Corporation Wisconsin $ 228,000
3,900 Inter-Regional Financial Group 103,838
3,400 JSB Financial Inc. 112,625
6,600 Morgan Keegan Inc. 82,500
14,000 Phoenix Duff & Phelps 89,250
13,500 Roosevelt Financial Group 237,937
5,400 Standard Financial Inc. 87,750
-----------
941,900
-----------
FOOD & AGRICULTURE -- 3.0%
13,700 Bob Evans Farms Inc. 200,363
12,900 Dean Foods Company 333,787
5,700 International Multifoods 94,763
9,300 Smucker, J.M. Company, Class A 153,450
8,400 Universal Foods Corporation 240,450
-----------
1,022,813
-----------
INSURANCE -- 9.0%
13,100 Alfa Corporation 150,650
4,500 ALLIED Group Inc. 174,375
3,700 First American Financial Corporation 117,937
3,200 Foremost Corporation of America 174,800
8,172 Fremont General Corporation 221,665
4,800 Guaranty National Corporation 67,800
4,400 Harleysville Group Inc. 110,000
5,600 Home Beneficial Corporation, Class B 140,700
5,000 Integon Corporation 101,875
11,500 Ohio Casualty Corporation 366,562
4,500 Orion Capital Corporation 226,125
36,600 Reliance Group Holdings 288,225
4,700 Selective Insurance Group 151,575
2,100 Trenwick Group Inc. 111,825
4,000 United Wisconsin Services Inc. 110,500
11,050 USLIFE Corporation 323,213
3,900 Washington National Corporation 113,100
5,600 Zenith National Insurance Corporation 151,200
-----------
3,102,127
-----------
</TABLE>
See Notes to Financial Statements.
38
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
LIQUOR -- 0.7%
12,200 Coors, Adolph Company, Class B $ 244,000
-----------
MEDIA -- 0.7%
10,000 Banta Corporation 234,375
-----------
MOTOR VEHICLES -- 1.1%
9,500 Artic Cat Inc. 100,937
3,800 Bearings, Inc. 109,725
6,700 Smith (A.O.) Corporation 162,475
-----------
373,137
-----------
NON-DURABLE & ENTERTAINMENT -- 1.9%
5,300 Cross (A.T.) Company, Class A 63,600
19,900 Premark International Inc. 363,175
5,600 Ruby Tuesday Inc. 116,200
6,900 Russ Berrie & Company 109,538
-----------
652,513
-----------
NON-FERROUS METALS -- 1.3%
13,700 ASARCO Inc. 354,488
5,100 Brush Wellman Inc. 96,900
-----------
451,388
-----------
PAPER & FOREST PRODUCTS -- 3.4%
7,500 Chesapeake Corporation 183,750
16,600 Longview Fibre Company 255,225
9,300 Potlatch Corporation 349,912
9,500 Rayonier Inc. 376,437
-----------
1,165,324
-----------
PRODUCER GOODS -- 3.2%
9,700 Albany International Corporation, Class A 197,637
4,700 CLARCOR Inc. 101,050
5,000 Commercial Intertech 125,000
1,700 Curtiss-Wright Corporation 90,206
3,100 Helix Technology Corporation 82,150
5,900 Juno Lighting Inc. 86,287
3,700 Manitowoc Inc. 116,088
4,300 Quanex Corporation 95,675
</TABLE>
See Notes to Financial Statements.
39
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PRODUCER GOODS -- (Continued)
16,700 UNR Industries Inc. $ 152,388
3,900 Zurn Industries Inc. 80,437
-----------
1,126,918
-----------
REAL PROPERTY -- 0.6%
7,400 FelCor Suite Hotels 225,700
-----------
RETAIL -- 2.5%
18,200 Family Dollar Stores Inc. 309,400
6,400 Longs Drug Stores Inc. 256,000
10,200 Shopko Stores Inc. 155,550
5,900 Stanhome Inc. 150,450
-----------
871,400
-----------
SHIPPING -- 0.9%
6,500 GATX Corporation 300,625
-----------
STEEL -- 2.4%
5,400 Carpenter Technology 182,250
9,200 Chaparral Steel Company 120,750
3,800 Cleveland-Cliffs Inc. 148,200
12,400 J & L Specialty Steel Inc. 168,950
4,700 Lukens Inc. 94,587
8,100 Oregon Steel Mills Inc. 122,512
-----------
837,249
-----------
TOBACCO -- 0.8%
11,300 Universal Corporation 285,325
-----------
TRAVEL & RECREATION -- 0.4%
5,318 K2 Inc. 130,291
-----------
UTILITIES -- 22.3%
24,900 American Water Works Inc. 532,237
4,300 Bay State Gas Company 117,175
4,600 Black Hills Power & Light Corporation 115,000
5,700 Central Hudson Gas & Electric Company 171,712
10,400 Central Maine Power Company 126,100
4,300 CILCORP, Inc. 181,675
11,000 CIPSCO Inc. 390,500
6,500 Eastern Utilities Association 104,813
</TABLE>
See Notes to Financial Statements.
40
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
5,100 Empire District Electric Company $ 90,525
9,700 Hawaiian Electric Industries 339,500
12,100 Idaho Power Company 397,788
9,600 IES Industries Inc. 319,200
3,100 Interstate Power Company 94,938
5,600 Laclede Gas Company 130,900
5,200 Madison Gas & Electric Company 119,600
9,150 MDU Resources Group 200,156
10,200 Minnesota Power & Light Company 274,125
15,300 Nevada Power Company 315,563
5,800 New Jersey Resources 166,025
4,800 Northwest Natural Gas Company 170,400
8,700 ONEOK Inc. 238,162
4,400 Orange & Rockland Utilities 156,750
5,900 Philadelphia Suburban Company 97,350
9,300 Piedmont Natural Gas Inc. 230,175
13,400 Public Service Company of New Mexico 261,300
6,100 Public Service Company of North Carolina 104,463
12,300 Rochester Gas & Electric Company 229,088
9,700 Sierra Pacific Resources 247,350
4,700 SIGCORP, Inc. 166,262
3,500 TNP Enterprise Inc. 81,812
4,600 United Illuminating Company 159,275
13,900 Washington Gas & Light Company 304,063
18,000 Washington Water Power 333,000
5,900 WICOR, Inc. 211,663
9,900 WPL Holdings Inc. 301,950
7,700 WPS Resources Corporation 240,625
-----------
7,721,220
-----------
TOTAL COMMON STOCKS (Cost $32,912,036) 34,238,367
===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $32,912,036*) 98.8% 34,238,367
OTHER ASSETS AND LIABILITIES (NET) 1.2 425,287
---- ----------
NET ASSETS 100.0% $34,663,654
===== ===========
</TABLE>
* Aggregate cost for Federal tax purposes was $32,988,230.
See Notes to Financial Statements.
41
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES [LOGO]
AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules $ 26,897,050 $ 35,401,249 $ 21,512,181 $ 34,238,367
Cash -- -- 104,701 --
Dividends receivable 22,041 164,185 2,135 119,799
Receivable for Portfolio shares sold 3,215 4,944 4,133 68,808
Receivable for investment securities
sold -- 299,844 80,143 3,717,358
Unamortized organization costs (Note 5) 3,739 3,902 3,629 2,686
Prepaid expenses and other assets 11,385 14,232 7,845 9,205
---------- ---------- ---------- ----------
Total Assets 26,937,430 35,888,356 21,714,767 38,156,223
---------- ---------- ---------- ----------
LIABILITIES:
Due to custodian 9,361 298,691 -- 3,336,153
Payable for Portfolio shares redeemed 38,685 97,657 6,510 47,994
Administration fee payable (Note 2) 5,766 6,882 5,023 7,032
Shareholder servicing fees payable
(Note 3) 6,277 6,028 5,779 9,690
Transfer agent fees payable (Note 2) 3,000 3,000 2,000 3,000
Custodian fees payable (Note 2) 3,125 3,125 3,125 3,125
Accrued Directors' fees and expenses
(Note 2) 4,038 4,038 4,038 4,038
Accrued audit fees 24,000 24,000 24,000 24,000
Accrued legal fees 34,707 45,762 27,444 48,086
Accrued expenses and other payables 11,140 14,483 10,129 9,451
---------- ---------- ---------- ----------
Total Liabilities 140,099 503,666 88,048 3,492,569
---------- ---------- ---------- ----------
NET ASSETS $ 26,797,331 $ 35,384,690 $ 21,626,719 $ 34,663,654
============ ============ ============ ============
Investments, at cost (Note 1) $ 21,316,749 $ 32,611,321 $ 19,748,411 $ 32,912,036
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
42
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) [LOGO]
AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income $ 31,210 $ 779,655 $ -- $ 751,862
Accumulated net realized gain on
investments sold 2,714,606 2,901,041 3,485,066 1,922,414
Net unrealized appreciation of
investments 5,580,301 2,789,928 1,763,770 1,326,331
Par value 1,385 1,988 1,165 2,177
Paid-in capital 18,469,829 28,912,078 16,376,718 30,660,870
------------ ------------ ------------ ------------
$ 26,797,331 $ 35,384,690 $ 21,626,719 $ 34,663,654
============ ============ ============ ============
NET ASSETS:
Investment Class shares $ 19,034,785 $ 17,959,835 $ 18,049,348 $ 27,328,889
============ ============ ============ ============
Institutional Class shares $ 7,762,546 $ 17,424,855 $ 3,577,371 $ 7,334,765
============ ============ ============ ============
SHARES OUTSTANDING:
Investment Class shares 983,778 1,009,161 972,333 1,716,735
============ ============ ============ ============
Institutional Class shares 401,090 979,106 192,695 460,695
============ ============ ============ ============
INVESTMENT CLASS SHARES:
Net asset value, offering and redemption
price per share $ 19.35 $ 17.80 $ 18.56 $ 15.92
============ ============ ============ ============
INSTITUTIONAL CLASS SHARES:
Net asset value, offering and redemption
price per share $ 19.35 $ 17.80 $ 18.56 $ 15.92
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
43
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF OPERATIONS [LOGO]
FOR THE YEAR ENDED AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 346,690 $1,373,115 $ 44,193 $1,400,514
Interest 8,290 16,319 6,908 17,033
------- --------- ------ ---------
Total investment income 354,980 1,389,434 51,101 1,417,547
------- --------- ------ ---------
EXPENSES:
Investment advisory fee (Note 2) 32,643 42,436 27,057 43,314
Administration fee (Note 2) 56,587 71,244 48,501 72,360
Transfer agent fees (Note 2) 18,790 20,290 23,355 21,067
Shareholder servicing fee (Note 3) 42,313 48,619 35,742 51,521
Custodian fees (Note 2) 4,290 3,993 2,446 4,674
Registration and filing fees 11,662 15,195 16,011 20,264
Audit fees 29,111 31,000 25,121 27,459
Legal fees 37,590 49,683 29,635 49,390
Amortization of organization costs
(Note 5) 2,868 3,018 2,767 4,565
Directors' fees and expenses (Note 2) 10,333 12,245 9,509 12,086
Other 7,076 15,555 8,215 6,576
------- --------- ------ ---------
Subtotal 253,263 313,278 228,359 313,276
Distribution fees (Note 3) 6,277 5,984 5,857 9,763
Fees waived by investment adviser and
administrator (Note 2) (9,533) (11,661) (8,384) (12,387)
------- --------- ------ ---------
Total net expenses 250,007 307,601 225,832 310,652
------- --------- ------ ---------
NET INVESTMENT INCOME/(LOSS) 104,973 1,081,833 (174,731) 1,106,895
------- --------- ------ ---------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (Notes 1 and 4):
Net realized gain on investments during
the year 3,041,621 3,153,054 3,995,373 2,101,923
Net change in unrealized appreciation/
(depreciation) of investments during
the year 1,835,722 583,669 (279,274) (194,305)
--------- ------- -------- --------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 4,877,343 3,736,723 3,716,099 1,907,618
--------- --------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 4,982,316 $ 4,818,556 $ 3,541,368 $ 3,014,513
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
44
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS [LOGO]
YEAR ENDED AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 104,973 $ 1,081,833 $ (174,731) $ 1,106,895
Net realized gain on investments sold
during the year 3,041,621 3,153,054 3,995,373 2,101,923
Net change in unrealized
appreciation/
(depreciation) of investments
during the year 1,835,722 583,669 (279,274) (194,305)
--------- ------- -------- --------
Net increase in net assets resulting
from operations 4,982,316 4,818,556 3,541,368 3,014,513
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investment Class shares (171,127) (772,273) -- (1,093,961)
Institutional Class shares -- -- -- --
Net realized gain on investments:
Investment Class shares (586,295) (831,426) (3,245,229) (860,790)
Institutional Class shares -- -- -- --
--------- ------- -------- --------
Total distributions to shareholders (757,422) (1,603,699) (3,245,229) (1,954,751)
CAPITAL STOCK TRANSACTIONS:
Investment Class shares:
Shares sold 14,574,069 21,626,014 9,937,125 24,066,420
Shares issued as reinvestment of
dividends 689,109 1,564,499 3,050,507 1,906,029
Shares redeemed (21,367,106) (30,777,774) (16,749,530) (25,464,503)
----------- ----------- ----------- -----------
Total Investment Class shares (6,103,928) (7,587,261) (3,761,898) 507,946
----------- ----------- ----------- -----------
Institutional Class shares:
----------- ----------- ----------- -----------
Shares sold 7,327,918 16,830,839 3,210,300 7,117,734
----------- ----------- ----------- -----------
Total Institutional Class shares 7,327,918 16,830,839 3,210,300 7,117,734
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets
from Capital Stock transactions 1,223,990 9,243,578 (551,598) 7,625,680
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets 5,448,884 12,458,435 (255,459) 8,685,442
----------- ----------- ----------- -----------
NET ASSETS:
Beginning of year 21,348,447 22,926,255 21,882,178 25,978,212
----------- ----------- ----------- -----------
End of year $ 26,797,331 $35,384,690 $ 21,626,719 $ 34,663,654
============ =========== ============= ============
Undistributed net investment income $ 31,210 $ 779,655 $ -- $ 751,862
============ =========== ============= ============
</TABLE>
See Notes to Financial Statements.
45
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) [LOGO]
YEAR ENDED AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Investment Class shares:
Shares sold 811,376 1,253,565 562,163 1,527,858
Shares issued as reinvestment of
dividends 39,718 92,464 186,234 122,970
Shares redeemed (1,173,450) (1,767,796) (955,596) (1,619,393)
----------- ----------- --------- -----------
Net increase/(decrease) in
Investment Class shares
outstanding (322,356) (421,767) (207,199) 31,435
======== ======== ======== ======
Institutional Class shares:
Shares sold 401,090 979,106 192,695 460,695
------- ------- ------- -------
Net increase in Institutional Class
shares outstanding 401,090 979,106 192,695 460,695
======= ======= ======= =======
</TABLE>
See Notes to Financial Statements.
46
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS [LOGO]
YEAR ENDED AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 139,915 $ 597,585 $ (85,015) $ 1,038,502
Net realized gain on investments sold
during the year 381,982 680,162 3,009,406 793,177
Net change in unrealized appreciation
of investments during the year 3,125,221 2,162,794 775,482 1,360,207
--------- --------- ------- ---------
Net increase in net assets resulting
from operations 3,647,118 3,440,541 3,699,873 3,191,886
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (91,631) (461,355) -- (842,828)
Net realized gain on investments -- (117,646) (274,014) (131,692)
-------- -------- -------- --------
Total distributions to shareholders (91,631) (579,001) (274,014) (974,520)
CAPITAL STOCK TRANSACTIONS:
Shares sold 15,277,226 11,530,692 12,371,344 18,676,103
Shares issued as reinvestment of
dividends 86,969 568,732 259,640 852,961
Shares redeemed (5,995,631) (4,192,263) (5,363,057) (19,206,167)
---------- ---------- ---------- -----------
Net increase in net assets from
Capital Stock transactions 9,368,564 7,907,161 7,267,927 322,897
--------- --------- --------- -------
Net increase in net assets 12,924,051 10,768,701 10,693,786 2,540,263
---------- ---------- ---------- ---------
NET ASSETS:
Beginning of year 8,424,396 12,157,554 11,188,392 23,437,949
--------- ---------- ---------- ----------
End of year $ 21,348,447 $ 22,926,255 $21,882,178 $25,978,212
============ ============ =========== ===========
Undistributed net investment income/
(accumulated net investment loss) $ 89,061 $ 470,916 $ (87,165) $ 733,991
=========== =========== ========== ============
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,070,812 815,733 761,531 1,332,739
Shares issued as reinvestment of
dividends 6,609 44,156 17,183 64,716
Shares redeemed (404,353) (298,264) (326,229) (1,348,397)
-------- -------- -------- ----------
Net increase in shares outstanding 673,068 561,625 452,485 49,058
======= ======= ======= ======
</TABLE>
See Notes to Financial Statements.
47
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INSTITUTIONAL
INVESTMENT CLASS SHARES CLASS SHARES
----------------------- ------------
YEAR YEAR YEAR PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/96 8/31/95 8/31/94 8/31/93* 8/31/96*
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 16.34 $ 13.31 $ 12.74 $ 12.50 $ 18.27
-------- ------- ------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.07 0.10 0.15 0.21 0.01
Net realized and unrealized gain on
investments 3.45 3.03 0.65 0.10 1.07
---- ---- ---- ---- ----
Total from investment operations 3.52 3.13 0.80 0.31 1.08
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.12) (0.10) (0.23) (0.07) --
Distributions from capital gains (0.39) -- -- -- --
----- ------ ------ ------ -------
Total distributions (0.51) (0.10) (0.23) (0.07) --
------ ------ ------ ------ -------
Net asset value, end of year $ 19.35 $ 16.34 $ 13.31 $ 12.74 $ 19.35
======== ======== ======= ======= ========
Total return+ 21.90% 23.67% 6.34% 2.46%++ 5.91%++
===== ===== ==== ==== ====
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $19,035 $21,348 $8,424 $8,061 $ 7,763
Ratio of net operating expenses to
average net assets 0.93% 0.84% 0.68% -- 0.91%**
Decrease reflected in above expense
ratio due to expense waivers 0.03% 0.21% 0.71% 1.14%++ 0.03%**
Ratio of net investment income to
average net assets 0.39% 0.94% 1.18% 1.66%++ 0.41%**
Portfolio turnover rate 44% 30% 22% 12% 44%
Average commission rate paid (a) $0.0312 -- -- -- $0.0312
</TABLE>
- --------
* Large Company Growth Portfolio Investment Class shares and Institutional
Class shares commenced operations on September 30, 1992 and July 15, 1996,
respectively.
* * Annualized.
+ Total return represents aggregate total return for the period
indicated.
++ Non-annualized.
(a) Average commission rate paid per share of portfolio securities purchased and
sold by the Portfolio.
See Notes to Financial Statements
48
- --------------------------------------------------------------------------------
Wilshire Target Funds, Inc.
Large Company Value Portfolio [LOGO]
Financial Highlights
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INSTITUTIONAL
INVESTMENT CLASS SHARES CLASS SHARES
----------------------- ------------
YEAR YEAR YEAR PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/96 8/31/95 8/31/94 8/31/93* 8/31/96*
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 16.02 $ 13.99 $ 15.18 $ 12.50 $ 17.19
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.85 0.34 0.36 0.54 0.07
Net realized and unrealized
gain/(loss) on investments 1.91 2.19 (0.90) 2.30 0.54
---- ---- ----- ---- ----
Total from investment operations 2.76 2.53 (0.54) 2.84 0.61
---- ---- ----- ---- ----
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.47) (0.40) (0.36) (0.16) --
Distributions from capital gains (0.51) (0.10) (0.29) -- --
----- ----- -----
Total distributions (0.98) (0.50) (0.65) (0.16) --
----- ----- ----- -----
Net asset value, end of year $ 17.80 $ 16.02 $ 13.99 $ 15.18 $ 17.80
======= ======= ======= ======= ========
Total return+ 17.52% 18.97% (3.61)% 22.93%++ 3.55%++
===== ===== ===== ===== ====
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 17,960 $ 22,926 $12,158 $ 8,116 $ 17,425
Ratio of net operating expenses to
average net assets 0.89% 0.81% 0.58% -- 0.87%**
Decrease reflected in above expense
ratio due to expense waivers 0.03% 0.21% 0.60% 1.32%++ 0.03%**
Ratio of net investment income to
average net assets 3.12% 3.77% 4.02% 4.27%++ 3.14%**
Portfolio turnover rate 56% 58% 47% 22% 56%
Average commission rate paid (a) $0.0269 -- -- -- $ 0.0269
</TABLE>
- ------------
* Large Company Value Portfolio Investment Class shares and Institutional Class
shares commenced operations on September 30, 1992 and July 15, 1996,
respectively.
** Annualized.
+ Total return represents aggregate total return for the period
indicated.
++ Non-annualized.
(a)Average commission rate paid per share of portfolio securities purchased and
sold by the Portfolio.
See Notes to Financial Statements
49
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INSTITUTIONAL
INVESTMENT CLASS SHARES CLASS SHARES
----------------------- ------------
YEAR YEAR YEAR PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/96 8/31/95 8/31/94 8/31/93* 8/31/96*
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 18.55 $ 15.39 $ 16.03 $ 12.50 $ 16.66
-------- -------- -------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income/(loss) (0.19) (0.07) (0.04) 0.08 (0.02)
Net realized and unrealized gain on
investments 3.06 3.54 0.90 3.48 1.92
---- ---- ---- ---- ----
Total from investment operations 2.87 3.47 0.86 3.56 1.90
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- (0.03) --
Distributions in excess of net
investment income -- -- (0.07) -- --
Distributions from capital gains (2.86) (0.31) (1.43) -- --
----- ----- -----
Total distributions (2.86) (0.31) (1.50) (0.03) --
----- ----- ----- -----
Net asset value, end of year $ 18.56 $ 18.55 $ 15.39 $ 16.03 $ 18.56
======== ======== ======== ======= ========
Total return+ 17.50% 23.04% 5.20% 28.50%++ 11.40%++
===== ===== ==== ===== =====
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $18,049 $21,882 $11,188 $7,527 $ 3,577
Ratio of net operating expenses to
average net assets 1.01% 0.95% 0.74% -- 0.98%**
Decrease reflected in above expense
ratio due to expense waivers 0.04% 0.21% 0.73% 1.40%++ 0.04%**
Ratio of net investment income/(loss)
to average net assets (0.78)% (0.54)% (0.40)% 0.53%++ (0.75)%**
Portfolio turnover rate 87% 111% 46% 55% 87%
Average commission rate paid (a) $0.0200 -- -- -- $0.0200
</TABLE>
- --------
* Small Company Growth Portfolio Investment Class shares and Institutional
Class shares commenced operations on October 1, 1992 and July 15, 1996,
respectively.
** Annualized.
+ Total return represents aggregate total return for the period
indicated.
++ Non-annualized.
(a)Average commission rate paid per share of portfolio securities purchased and
sold by the Portfolio.
See Notes to Financial Statements.
50
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INSTITUTIONAL
INVESTMENT CLASS SHARES CLASS SHARES
----------------------- ------------
YEAR YEAR YEAR PERIOD PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/96 8/31/95 8/31/94 8/31/93* 8/31/96*
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 15.41 $ 14.32 $ 14.81 $ 12.50 $ 15.45
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.56 0.55 0.45 0.35 0.06
Net realized and unrealized
gain/(loss) on investments 0.95 1.06 (0.45) 2.10 0.41
---- ---- ----- ---- ----
Total from investment operations 1.51 1.61 0.00 2.45 0.47
---- ---- ---- ---- ----
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.56) (0.45) (0.33) (0.14) --
Distributions from capital gains (0.44) (0.07) (0.16) -- --
----- ----- ----- ----- --------
Total distributions (1.00) (0.52) (0.49) (0.14) --
----- ----- ----- ----- --------
Net asset value, end of year $ 15.92 $ 15.41 $ 14.32 $ 14.81 $ 15.92
======== ======== ======== ======== ========
Total return+ 10.01% 11.84% (0.01)% 19.72%++ 3.04%++
===== ===== ===== ===== ====
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $27,329 $25,978 $23,438 $15,155 $ 7,335
Ratio of net operating expenses to
average net assets 0.88% 0.69% 0.50% -- 0.85%**
Decrease reflected in above expense
ratio due to expense waivers 0.04% 0.22% 0.56% 1.32%++ 0.04%**
Ratio of net investment income to
average net assets 3.13% 4.12% 3.64% 3.65%++ 3.16%**
Portfolio turnover rate 81% 86% 49% 27% 81%
Average commission rate paid (a) $0.0238 -- -- -- $0.0238
</TABLE>
- --------
* Small Company Value Portfolio Investment Class shares and Institutional Class
shares commenced operations on September 30, 1992 and July 15, 1996,
respectively.
** Annualized.
+ Total return represents aggregate total return for the period
indicated.
++ Non-annualized.
(a)Average commission rate paid per share of portfolio securities purchased and
sold by the Portfolio.
See Notes to Financial Statements
51
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES.
Wilshire Target Funds, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end investment
company, which was incorporated under Maryland law on July 30, 1992. The Fund
operates as a series company having four series: Large Company Growth Portfolio,
Large Company Value Portfolio, Small Company Growth Portfolio and Small Company
Value Portfolio (the "Portfolios"). The Fund accounts separately for the assets,
liabilities and operations of each series.
Each of the Portfolios offer Investment and Institutional Class shares (the
"shares"), each of which has equal rights as to assets and voting privileges.
The Investment Class has exclusive voting rights with respect to its
distribution plan. The Portfolios commenced sale of Institutional Class shares
on July 15, 1996. Investment income, realized and unrealized capital gains and
losses and the common expenses of each Portfolio are allocated on a pro-rata
basis to each class based on the relative net assets of each class to the total
net assets of each Portfolio. Each class of shares differs in its respective
service and distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Portfolios in the
preparation of their financial statements.
PORTFOLIO VALUATION: Each Portfolio's investment securities are valued at the
last sale price on the securities exchange or national securities market on
which such securities primarily are traded. Securities not listed on an exchange
or national securities market, or securities in which there were no
transactions, are valued at the average of the most recent bid and asked prices.
Bid price is used when no asked price is available. Short-term investments are
carried at amortized cost, which approximates value. Any securities or other
assets for which recent market quotations are not readily available are valued
at fair value as determined in good faith by the Board of Directors.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recog-
52
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
nized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments is recognized on the accrual
basis.
EXPENSES: Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses of the Portfolios not directly
attributable to the operations of any class of shares are prorated among the
classes to which the expense relates based on the relative net assets of each
class of shares. Expenses and fees, including the advisory and administration
fees, are accrued daily and taken into account for the purpose of determining
the net asset value of each Portfolio's shares.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment
income, if any, are declared and paid annually. The Portfolio's net realized
capital gains, unless offset by any available capital loss carryforward, are
distributed to shareholders annually. Additional distributions of net investment
income and capital gains may be made at the discretion of the Board of Directors
in order to avoid the application of a 4% non-deductible Federal excise tax.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Portfolios, timing
differences and differing characterization of distributions made by each
Portfolio as a whole.
Permanent differences incurred during the year ended August 31, 1996 resulting
from differences in book and tax accounting have been reclassified at year end
to paid-in capital, undistributed net investment income and accumulated realized
gain/(loss). The permanent differences for the year were as follows:
<TABLE>
<CAPTION>
UNDISTRIBUTED ACCUMULATED
PAID-IN NET INVESTMENT REALIZED
FUND CAPITAL INCOME GAIN/(LOSS)
---- ------- ------ -----------
<S> <C> <C> <C>
Large Company Growth
Portfolio $(37,249) $ 8,303 $ 28,946
Large Company Value
Portfolio (9,440) (821) 10,261
Small Company Growth
Portfolio (26,489) 261,896 (235,407)
Small Company Value
Portfolio (7,883) 4,937 2,946
</TABLE>
FEDERAL INCOME TAXES: The Fund intends to qualify each year as a regulated
investment company by complying with the requirements of the Internal Reve-
53
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
nue Code of 1986, as amended, applicable to regulated investment companies and
by, among other things, distributing substantially all of its earnings to
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND
OTHER TRANSACTIONS.
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Wilshire Associates Incorporated ("Wilshire"). Under the terms
of the Advisory Agreement dated July 11, 1996, the Fund has agreed to pay
Wilshire a fee, computed daily and paid monthly, at the annual rate of .25 of 1%
of the value of each Portfolio's average daily net assets. However, the Advisory
Agreement also includes a fifteen-month expense limitation provision. For the
fifteen-month period commencing July 11, 1996, Wilshire has agreed that, if the
aggregate operating expenses of any Portfolio (exclusive of interest, taxes,
brokerage, 12b-1 plan fees and extraordinary expenses) for such period exceed
the annual rate specified in the following table for such Portfolio, the
investment advisory fee otherwise payable for that period by the Portfolio under
the Advisory Agreement will be reduced by the amount of the excess, but not
below an annual fee rate of .10 of 1% of such Portfolio's average daily net
assets.
<TABLE>
<CAPTION>
FUND ANNUAL RATE (%)
---- ---------------
<S> <C>
Large Company Growth Portfolio .80
Large Company Value Portfolio .77
Small Company Growth Portfolio .91
Small Company Value Portfolio .66
</TABLE>
Wilshire may from time to time reduce its fees payable by each Portfolio (either
voluntarily or pursuant to applicable state limitations). For the year ended
August 31, 1996, Wilshire voluntarily waived fees as follows:
<TABLE>
<CAPTION>
FUND FEES WAIVED
---- -----------
<S> <C>
Large Company Growth Portfolio $5,851
Large Company Value Portfolio 7,744
Small Company Growth Portfolio 4,637
Small Company Value Portfolio 8,004
</TABLE>
Prior to July 11, 1996, Wilshire was entitled to receive a monthly fee at the
annual rate of .10 of 1% of the value of each Portfolio's average daily net
assets.
54
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
First Data Investor Services Group, Inc. ("FDISG") (formerly known as The
Shareholder Services Group, Inc.), a wholly-owned subsidiary of First Data
Corporation, serves as the Fund's administrator pursuant to an administration
agreement (the "Administration Agreement"). Under the terms of the
Administration Agreement dated May 31, 1996, the Fund has agreed to pay FDISG a
fee, computed daily and paid monthly, at the annual rate of .15 of 1% of the
Fund's monthly average net assets up to aggregate assets of $1 billion, .10 of
1% of the Fund's monthly average net assets on the next $4 billion in aggregate
assets, and .08 of 1% of the Fund's monthly average net assets on the excess net
assets. In addition, the Fund has agreed to pay FDISG an annual fee of $25,000
per each Portfolio and $2,000 for each additional class. FDISG also serves as
the Fund's transfer and dividend disbursing agent.
Prior to May 31, 1996, The Dreyfus Corporation ("Dreyfus") served as the Fund's
administrator. Under the terms of the administration agreement with Dreyfus, the
Fund agreed to pay Dreyfus a monthly fee at the annual rate of .20 of 1% of the
Fund's average daily net assets.
Dreyfus had undertaken from September 1, 1995 through September 30, 1995, to
reduce the administration fee payable to it by each Portfolio. This reduction in
administration fee amounted to the following:
<TABLE>
<CAPTION>
FUND FEES WAIVED
---- -----------
<S> <C>
Large Company Growth Portfolio $3,682
Large Company Value Portfolio 3,917
Small Company Growth Portfolio 3,747
Small Company Value Portfolio 4,383
</TABLE>
For the period from December 1, 1995 through May 31, 1996, each Portfolio
compensated Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under
a transfer agency agreement for providing personnel and facilities to perform
transfer agency services for each Portfolio. Such compensation amounted to the
following:
<TABLE>
<CAPTION>
FUND FEES
---- ----
<S> <C>
Large Company Growth Portfolio $2,246
Large Company Value Portfolio 1,756
Small Company Growth Portfolio 4,823
Small Company Value Portfolio 2,663
</TABLE>
55
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
Prior to June 3, 1996, a 1% redemption fee was charged on certain redemptions of
series' shares (including redemptions through the use of the Exchange Privilege)
where the redemption or exchange occurred within a six-month period following
the date of issuance. For the year ended August 31, 1996, redemption fees for
each series were as follows:
<TABLE>
<CAPTION>
FUND FEES
---- ----
<S> <C>
Large Company Growth Portfolio $33,457
Large Company Value Portfolio 22,590
Small Company Growth Portfolio 22,458
Small Company Value Portfolio 24,533
</TABLE>
The Northern Trust Company serves as the Fund's custodian.
No officer, director or employee of Wilshire, FDISG or any affiliate thereof
receives any compensation from the Fund for serving as Director or officer of
the Fund. The Fund pays each unaffiliated Director an annual fee of $3,000 plus
an additional $2,500 for each board meeting attended. The Fund also reimburses
expenses incurred by the unaffiliated Directors in attending such meetings.
3. SHAREHOLDER SERVICES PLAN.
The Directors and shareholders of the Fund have adopted a shareholder
services plan (the "Plan") pursuant to Rule 12b-1 adopted by the Securities and
Exchange Commission under the 1940 Act, with respect to the Investment Class
shares of each Portfolio. Under the Plan, the Fund reimburses 440 Financial
Distributors, Inc., the Fund's distributor, at an annual rate of up to .25 of 1%
of the value of the average daily net assets attributable to the Investment
Class shares of each Portfolio for certain shareholder services provided by
securities dealers or other financial intermediaries. The shareholder services
provided may include personal services to holders of the Investment Class shares
and/or for the maintenance of the accounts of the holders of the Investment
Class shares. The amount payable under the Plan is charged to, and therefore
reduces, income allocated to the Investment Class shares. The Plan was
implemented on July 15, 1996.
For the period from July 15, 1996 to August 31, 1996, each Portfolio incurred
the following amount pursuant to the Plan:
<TABLE>
<CAPTION>
FUND FEES
---- ----
<S> <C>
Large Company Growth Portfolio $6,277
Large Company Value Portfolio 5,984
Small Company Growth Portfolio 5,857
Small Company Value Portfolio 9,763
</TABLE>
56
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
Pursuant to a shareholder services plan in effect through May 31, 1996, each
Portfolio reimbursed Dreyfus Service Corporation, a wholly owned subsidiary of
Dreyfus, an amount not to exceed an annual rate of .25 of 1% of the value of
each Portfolio's average daily net assets for certain allocated expenses of
providing personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Portfolios and providing reports and other
information, and services related to maintenance of shareholder accounts.
Each Portfolio incurred the following amount pursuant to the previous
shareholder services plan:
<TABLE>
<CAPTION>
FUND FEES
---- ----
<S> <C>
Large Company Growth Portfolio $42,313
Large Company Value Portfolio 48,619
Small Company Growth Portfolio 35,742
Small Company Value Portfolio 51,521
</TABLE>
4. SECURITIES TRANSACTIONS.
For the year ended August 31, 1996, aggregate cost of purchases and proceeds
from sales of securities, other than short-term investments, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
---- --------- -----
<S> <C> <C>
Large Company Growth Portfolio $12,486,123 $11,701,943
Large Company Value Portfolio 27,911,013 18,975,166
Small Company Growth Portfolio 19,548,349 23,555,901
Small Company Value Portfolio 34,252,532 27,635,301
</TABLE>
At August 31, 1996, aggregate gross unrealized appreciation for all securities
for which there was an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities for which there was an excess of tax
cost over value for Federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
---- ------------ ------------
<S> <C> <C>
Large Company Growth Portfolio $5,981,927 $ 460,053
Large Company Value Portfolio 3,566,316 827,320
Small Company Growth Portfolio 4,074,230 2,442,059
Small Company Value Portfolio 2,616,647 1,366,510
</TABLE>
57
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
5. ORGANIZATION COSTS
The Portfolios bear all costs in connection with their organization,
including the fees and expenses of registering and qualifying their shares for
distribution under Federal and state securities regulations. All such costs are
being amortized on the straight-line method over a period of five years from
commencement of operations.
6. SIGNIFICANT SHAREHOLDER ACTIVITY
On July 16, 1996, a significant shareholder in each of the Portfolios
exchanged for an equivalent dollar value Investment Class shares for
Institutional Class shares. The following amounts were exchanged:
<TABLE>
<CAPTION>
PERCENTAGE
OF NET ASSETS
SHARES VALUE OF PRIOR TO
FUND EXCHANGED EXCHANGE EXCHANGE
---- --------- -------- --------
<S> <C> <C> <C>
Large Company Growth Portfolio 401,090 $ 7,327,918 28%
Large Company Value Portfolio 979,106 16,830,839 47
Small Company Growth Portfolio 192,695 3,210,300 16
Small Company Value Portfolio 460,695 7,117,734 19
</TABLE>
At August 31, 1996, the above-mentioned shareholder owned approximately 100% of
the total outstanding Institutional Class shares of each of the Portfolios.
58
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC. [LOGO]
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Wilshire Target Funds, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of Wilshire Target Funds, Inc.
(formerly Dreyfus- Wilshire Target Funds, Inc.) (comprised of Large Company
Growth Portfolio, Large Company Value Portfolio, Small Company Growth Portfolio
and Small Company Value Portfolio) as of August 31, 1996, the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the three years in the period then ended and for the period from
September 30, 1992 (when operations commenced for all Portfolios except Small
Company Growth Portfolio, which commenced operations on October 1, 1992) to
August 31, 1993. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits 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
August 31, 1996 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 audits provide 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
each of the respective portfolios constituting Wilshire Target Funds, Inc. as of
August 31, 1996, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for the periods referred to above, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 14, 1996
59
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
TAX INFORMATION [LOGO]
(UNAUDITED)
- --------------------------------------------------------------------------------
The amounts of long-term capital gains paid for the fiscal year ended August
31, 1996, were as follows:
<TABLE>
<S> <C>
Large Company Growth Portfolio $ 514,868
Large Company Value Portfolio 369,705
Small Company Growth Portfolio 1,341,952
Small Company Value Portfolio 301,180
</TABLE>
Of the distributions made by the following Portfolios, the corresponding
percentage represents the amount of each distribution which will qualify for the
dividends received deduction available to corporate shareholders:
<TABLE>
<S> <C>
Large Company Growth Portfolio 73.32%
Large Company Value Portfolio 58.26%
Small Company Growth Portfolio 2.02%
Small Company Value Portfolio 67.52%
</TABLE>
60
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SPECIAL MEETING OF SHAREHOLDERS [LOGO]
(UNAUDITED)
- --------------------------------------------------------------------------------
On May 23, 1996, the Fund held a Special Meeting of Shareholders (the
"Meeting"). At the Meeting as adjourned and reconvened, the following matters
were voted on and approved. With regard to certain proposals, it was recommended
that the Meeting be reconvened in order to provide shareholders with an
additional opportunity to return their proxies. The dates of the reconvened
meetings at which the proposals were approved are noted beneath the relevant
Portfolio.
PROPOSAL NO. 1
The election of five (5) Directors of the Fund:
<TABLE>
<CAPTION>
NAME FOR ABSTAINED
---- --- ---------
<S> <C> <C>
DeWitt F. Bowman 6,752,101.963 126,844.965
Peter J. Carre 6,750,823.138 128,123.790
Robert J. Raab, Jr. 6,752,073.397 126,873.531
Thomas D. Stevens 6,752,442.672 126,504.256
Anne L. Wexler 6,744,572.074 134,374.854
</TABLE>
PROPOSAL NO. 2
To approve or disapprove a proposed new investment advisory agreement for
each Portfolio between the Fund, on behalf of the Portfolios, and Wilshire
Associates Incorporated, each Portfolio's Investment Adviser:
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAINED
---- --- ------- ---------
<S> <C> <C> <C>
Large Company Growth Portfolio 859,227.444 88,620.461 22,574.424
Large Company Value Portfolio 1,512,056.443 94,845.395 32,933.950
Small Company Growth Portfolio
(approved July 11, 1996) 696,954.007 142,441.255 29,357.194
Small Company Value Portfolio
(approved May 29, 1996) 1,468,252.976 243,855.459 27,643.783
</TABLE>
61
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SPECIAL MEETING OF SHAREHOLDERS -- (CONTINUED) [LOGO]
(UNAUDITED)
- --------------------------------------------------------------------------------
PROPOSAL NO. 3
To approve or disapprove a proposed new shareholder services plan for each
Portfolio adopted pursuant to Rule 12b-1:
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAINED
---- --- ------- ---------
<S> <C> <C> <C>
Large Company Growth Portfolio 854,996.464 83,944.969 31,480.896
Large Company Value Portfolio 1,492,612.329 109,428.652 37,794.807
Small Company Growth Portfolio
(approved July 3, 1996) 699,319.807 127,615.804 35,764.044
Small Company Value Portfolio
(approved May 29, 1996) 1,639,462.394 67,873.569 32,416.255
</TABLE>
PROPOSAL NO. 4
To ratify or reject the selection of Coopers & Lybrand L.L.P. as the
independent public accountants being employed by the Fund for the fiscal year
ending August 31, 1996:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAINED
--- ------- ---------
<S> <C> <C>
6,760,479.635 25,274.890 93,192.403
</TABLE>
62
