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[LOGO]
WILSHIRE
TARGET FUNDS, INC.
ANNUAL REPORT
Large Company Growth Portfolio
Large Company Value Portfolio
Small Company Growth Portfolio
Small Company Value Portfolio
---------------
August 31, 1997
Wilshire Target Funds, Inc.
Shareholder Letter 1
Large Company Growth Portfolio:
Fund Commentary 4
Large Company Value Portfolio:
Fund Commentary 6
Small Company Growth Portfolio:
Fund Commentary 8
Small Company Value Portfolio:
Fund Commentary 10
Statements of Investments:
Large Company Growth Portfolio 12
Large Company Value Portfolio 21
Small Company Growth Portfolio 28
Small Company Value Portfolio 34
Statements of Assets and Liabilities 42
Statements of Operations 44
Statements of Changes in Net Assets 45
Financial Highlights:
Large Company Growth Portfolio 49
Large Company Value Portfolio 51
Small Company Growth Portfolio 53
Small Company Value Portfolio 55
Notes to Financial Statements 57
----------------------------
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.
Wilshire Target Funds, Inc. are distributed by First Data Distributors,
Inc.
DEAR SHAREHOLDER,
Greetings to all shareholders of the Wilshire Target Funds, Inc. (the "Fund").
The past 12 months proved to be very rewarding for U.S. equity market
investors. The 1990's were supposed to be a decade of more tempered results
relative to what most investors agreed was an exceptional period in the 80's.
Instead, what we have seen is continued economic growth and strong market
performance. During the decade ended December 31, 1989, the market, as measured
by the Wilshire 5000 Index, advanced at the rate of 16.6% compounded annually.
So far this decade through August 27, 1997, the index has advanced at a 15.8%
annual rate. Consequently, while expectations have been reduced, the financial
rewards have not.
We think this fact is particularly relevant since it is our belief that those
who engage in attempting to predict the level of the market in the future are
delving into an activity for which there is little evidence of success. We
believe investors would do better by focusing more on obtaining market exposure
and less on trying to determine when to get in or out. Our goal with the Fund is
to deliver the best focused exposures possible for long-term investors.
Investors who focus on the long term rather than worrying about short term
market gyrations have typically experienced significant growth in their
portfolios. Over the past two years, many analysts predicted a market
correction. Those who chose to heed that advice missed what has turned out to be
an exceptional bull market environment. We are not saying that the market does
not turn south periodically; quite the contrary! First of all, we believe it is
inevitable that corrections will occur after steep advances and secondly, it is
healthy for the market to go through a correction every once in a while. The
problem is that these market turns are practically impossible to predict. We
believe that if too much attention is placed on market timing it shifts
attention away from what we feel is the real issue for investors -- making sure
their investments provide sufficient market exposure.
The four distinct segments of the equity market are represented by the Large
Company Value, Large Company Growth, Small Company Value and Small Company
Growth Portfolios (the "Portfolios"). Investors looking for focused exposures to
each equity style category should find that the Portfolios are managed very
diligently and adhere to the specific characteristics that define that style.
This report covers the twelve month period ended August 31, 1997 for both
classes of shares of the Portfolios -- Investment Class and Institutional Class.
THE STYLE APPROACH
Investors either explicitly or implicitly make style decisions every time they
select a mutual fund. Imbedded in the fund description is information that helps
to separate that product from all others.
1
Style categories have emerged over time reflecting the very different investment
criteria used by money managers. Our Portfolios are oriented to the fundamental
profiles of four styles. The growth portfolios focus on companies whose
financial characteristics include above average earnings growth, sales growth
and return on equity. Conversely, value portfolios seek companies with above
average earnings yield, dividend yield and book-to-price ratios. We construct
our Portfolios using fundamental criteria, which enables us to keep our focus
true to the style definitions.
In order to maintain proper style exposure in each Portfolio, changes are made
over time as companies' characteristics change. Stocks are sold if they no
longer meet the criteria of that particular Portfolio. For example, value stocks
can no longer be as attractive from a value perspective after a strong relative
advance as they were previously. Consequently, the Portfolios require constant
vigilance and monitoring to make sure that each Portfolio has the most
appropriate stocks given its style orientation.
MARKET ENVIRONMENT
During the year ended August 31, 1997 we saw a continuation of the trend where
large company stocks outperformed small company stocks.
[BAR CHART]
U.S. Equity Large Small
Securities Companies Companies
37.3% 40.6% 29.5%
----------- --------- ---------
Wilshire S & P Wilshire
5000 500 Next 1750
Index Index Index
The Wilshire 5000 Index, comprised of all U. S. equity securities, advanced
37.3% for the twelve months ended August 31, 1997. Large companies, as measured
by the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index"),
rose 40.6% and small companies, as measured by the Wilshire Next 1750 Index,
climbed 29.5% during such time period.
2
While both large and small stocks enjoyed strong absolute levels of return it
was a year that was most rewarding for large growth stocks. Growth dominated
value in both size categories, despite the fact that small growth companies
performed poorly in late 1996 and early 1997. While many analysts have warned
recently that large growth stocks have gotten ahead of themselves and are due
for a correction, we would point out that market timing among investment styles
can be as difficult and as risky as market timing among asset classes.
While we would like to see our shareholders use the Portfolios for all their
investment needs, we realize that many of you will have some of your portfolio
in other investments as well. On or about November 1, 1997, the Fund will begin
offering two new bond portfolios, Intermediate Corporate Bond Portfolio and
Long-Term Corporate Bond Portfolio (the "Bond Portfolios"). The goal of each
Bond Portfolio is to provide as high a level of current income as Wilshire
believes is consistent with prudent risk of capital. We hope the addition of
these two new Portfolios will help each investor in pursuing their investment
goals.
Sincerely,
/s/ Thomas D. Stevens
Thomas D. Stevens
President and Chairman of the Board
October 1, 1997
3
LARGE COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
The Large Company Growth Portfolio continued to show very strong
performance for the fiscal year ended August 31, 1997. In fact, it was one of a
select group of U.S. equity funds to outperform the S&P 500 Index total return
of 40.61% for the period. The Portfolio's Investment Class Shares earned a total
return of 40.91% and its Institutional Class Shares earned a return of 40.99%.
Much of the performance for this Portfolio can be attributed to its holdings in
the Technology sector. With a 30% Technology sector weighting and an average
return of 77% on its holdings in the Technology sector it is easy to see why.
Some of the big contributors to this performance were Microsoft Corporation,
Intel Corporation and Compaq Computer Corporation which represented almost half
the weight of this sector in the Portfolio. The most heavily weighted sector was
Consumer Non-Durables, representing nearly 41% of the Portfolio. Companies
including Merck & Company, Inc., Wal-Mart Stores, Inc., Procter & Gamble Company
and Gillette Company made this another solid performing sector.
[CALL-OUT]
PORTFOLIO INFORMATION(1)
(As of August 31, 1997)
Average 5-Year Sales Growth 20.7%
Average 5-Year Earnings Growth 17.6%
Average 5-Year Return on Equity 25.0%
(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, 1997 for those
securities in the Portfolio's
holdings as of August 31, 1997
whose issuers have been in
existence for at least 5 years.
The fundamentals of the Large Company Growth Portfolio remained strong.
Five-year earnings growth, return on equity and sales growth ratios used in the
selection of companies for inclusion in the Portfolio all remained well above
the averages for companies in the S&P 500 Index. We believe this is indicative
of a Portfolio of high quality companies and demonstrates an established record
of sustained growth and corresponding earnings. The Large Company Growth
Portfolio seeks out these high quality companies exclusively rather than trying
to identify next years turnaround success story in hopes of hitting a home run.
The Portfolio continues to focus on fundamentals and track record as a means to
identify and invest in the very best large capitalization companies.
[PIE CHART]
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1997)
Materials & Services 5.26%
Capital Goods 9.54%
Consumer Durables 1.31%
Consumer Non-Durables 40.97%
Technology 29.70%
Transportation 0.37%
Utilities 1.97%
Finance 9.42%
Energy 1.46%
*Based on percent of Portfolio's total market value
4
LARGE COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (9/30/92) through 8/31/97 18.61%
Year Ended 8/31/97 40.91%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (7/15/96) through 8/31/97 42.65%
Year Ended 8/31/97 40.99%
*Assumes reinvestment of all dividends and
distributions. During the periods, certain fees and
expenses were waived or reimbursed. For the year ended
August 31, 1997, fees and expenses totaling 0.28% per
share were waived or reimbursed. Without such waivers
and reimbursements, total returns would have been lower.
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF LARGE COMPANY GROWTH PORTFOLIO AND THE WILSHIRE 5000 INDEX
[LINE CHARTS]
LARGE COMPANY GROWTH PORTFOLIO INVESTMENT CLASS SHARES
======================================================
LABEL VALUES/YRS LGE.CO.GROWTH WILSHIRE 5000
----------------------------------------------------
1 9/30/92 10000 10000
5 8/31/93 10246 11702
9 8/31/94 10895 12261
13 8/31/95 13474 14948
17 8/31/96 16424 17522
21 8/31/97 23143 24059
LARGE COMPANY GROWTH PORTFOLIO INSTITUTIONAL CLASS SHARES
=========================================================
LABEL VALUES/YRS LGE.CO.GROWTH WILSHIRE 5000
----------------------------------------------------
1 7/15/96 10000 10000
2 8/31/96 10591 9763
6 8/31/97 14933 13406
These charts compare a $10,000 investment made in Investment Class Shares and
Institutional Class Shares of the Portfolio on their respective inception dates
to a $10,000 investment made in the index on those dates. All dividends and
capital gains are reinvested. Further information relating to the Portfolio's
performance, including expense reimbursements, is contained in the Financial
Highlights section of the respective prospectus and elsewhere in this report.
Past performance is not predictive of future performance.
5
LARGE COMPANY VALUE PORTFOLIO
FUND COMMENTARY
The Large Company Value Portfolio closed out another year of very good
performance. For the year ended August 31, 1997, the Portfolio's Investment
Class Shares earned a total return of 34.27%, and Institutional Class Shares
earned 34.26%. The Finance and Utility sectors, traditional components of value
portfolios, remained the most heavily weighted sectors throughout the twelve
months ended August 31, 1997, each averaging 29% of total market value. The
Finance sector made significant positive contributions to the Portfolio's
performance because companies in the Portfolio, including Chase Manhattan
Corporation, BankAmerica Corporation, First Chicago NBD and Bank of New York,
Inc., delivered returns in the 50% to 70% range for the fiscal year ended August
31, 1997. Other sectors with strong performance and significant weight in the
Portfolio were Energy and Technology. Big contributors to performance in the
Energy sector were Amoco Corporation and Panenergy. Technology was helped
primarily by IBM which accounted for most of that sectors weight in the
Portfolio.
[CALL-OUT]
PORTFOLIO INFORMATION(1)
(As of August 31, 1997)
Dividend Yield(2) 3.2%
Average Price/Book Ratio 2.5
Average Price/Earnings Ratio 14.7
(1) All averages are dollar-weighted
averages. The average book/price
ratio is calculated based on the
book value of each Portfolio
security as of the end of its
issuer's most recent fiscal year.
The average price/earnings ratio
is calculated based on the price
of each Portfolio security as of
the end of its issuer's most
recent fiscal year.
(2) The one-year dividend yield
corresponds to the stated
dividends of all underlying
securities held by the Portfolio
and is not an indication of the
current SEC yield of the
portfolio itself.
Fundamentals that are used for selection of stocks in this Portfolio are
price to earnings ratio, price to book ratio and dividend yield. The Portfolio
purchases stocks that are undervalued relative to their earnings and book value
and that the adviser expects to provide stable current income in the form of a
relatively higher dividend yield. The Portfolio's price to earnings and price to
book ratios remained lower than those of the S&P 500 Index, reflecting the
Portfolio's value orientation. The price to earnings ratio was around 14 and
price to book ratio was around 2 for the Portfolio versus 22 and 5,
respectively, for the S&P 500 Index.
[PIE CHART]
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1997)
Energy 16.00%
Consumer Non-Durables 6.25%
Consumer Durables 8.53%
Capital Goods 3.57%
Utilities 17.55%
Finance 38.13%
Materials & Services 6.19%
Technology 1.91%
Transportation 1.87%
*Based on percent of Portfolio's total market value
6
LARGE COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (9/30/92) through 8/31/97 17.66%
Year Ended 8/31/97 34.27%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (7/15/96) through 8/31/97 33.98%
Year Ended 8/31/97 34.26%
*Assumes reinvestment of all dividends and
distributions. During the periods, certain fees and
expenses were waived or reimbursed. For the year ended
August 31, 1997, fees and expenses totaling 0.27% per
share were waived or reimbursed. Without such waivers
and reimbursements, total returns would have been lower.
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF LARGE COMPANY VALUE PORTFOLIO AND THE WILSHIRE 5000 INDEX
[LINE CHARTS]
LARGE COMPANY VALUE PORTFOLIO INVESTOR CLASS SHARES
===================================================
LABEL VALUES/YRS LGE.CO.VALUE INV WILSHIRE 5000
------------------------------------------------------
1 9/30/92 10000 10000
5 8/31/93 12293 11702
9 8/31/94 11850 12261
13 8/31/95 14098 14948
17 8/31/96 16568 17522
21 8/31/97 22246 24059
LARGE COMPANY VALUE PORTFOLIO INSTITUTIONAL CLASS SHARES
========================================================
LABEL VALUES/YRS LGE.CO.VALUE INS WILSHIRE 5000
-----------------------------------------------------
1 7/15/96 10000 10000
2 8/31/96 10355 9763
6 8/31/97 13903 13406
These charts compare a $10,000 investment made in Investment Class Shares and
Institutional Class Shares of the Portfolio on their respective inception dates
to a $10,000 investment made in the index on those dates. All dividends and
capital gains are reinvested. Further information relating to the Portfolio's
performance, including expense reimbursements, is contained in the Financial
Highlights section of the respective prospectus and elsewhere in this report.
Past performance is not predictive of future performance.
7
SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
The Small Company Growth Portfolio began to kick into high gear towards the
end of the fiscal year after small cap stocks lagged large cap stocks for most
of the fourth quarter of 1996 and the first quarter of 1997. Over the five
months ended August 31, 1997 the Small Company Growth Portfolio earned a total
return of over 27%. This was outstanding considering the S&P 500 Index had a
total return of only about 19%. The performance during this period was due
primarily to the resurgence of the small cap Technology sector as well as solid
returns from holdings in Finance and Energy. Technology stocks that made
significant contributions were Keane, Inc., Concord EFS, Inc., Dallas
Semiconductor Corporation, and MasTec, Inc.
[CALL-OUT]
PORTFOLIO INFORMATION(1)
(As of August 31, 1997)
Average 5-Year Sales Growth 29.0%
Average 5-Year Earnings Growth 15.0%
Average 5-Year Return on Equity 16.4%
(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, 1997 for those
securities in the Portfolio's
holdings as of August 31, 1997
whose issuers have been in
existence for at least 5 years.
For the 12 months ended August 31, 1997, the Portfolio's Investment Class
Shares earned a total return of 15.16% and Institutional Class Shares earned
15.14%. For investment decisions, the Small Company Growth Portfolio uses the
same fundamental criteria as its large cap partner. Specifically, the
Portfolio's investment adviser seeks to identify high quality growth companies
by focusing on earnings and sales growth as well as dividend payout and return
on equity. By focusing on earnings and return on equity in the small cap arena,
the Portfolio seeks to invest in growth companies with a proven track record.
With recent speculation by many market pundits about the shift from a large cap
boom to small cap, as well as the recent performance of small cap stocks, we
feel this Portfolio is a terrific way to take part in that rally, should it
occur.
[PIE CHART]
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1997)
Consumer Durables 4.78%
Consumer Non-Durables 16.71%
Energy 4.38%
Capital Goods 7.49%
Transportation 5.37%
Finance 9.04%
Materials & Services 22.20%
Technology 30.03%
*Based on percent of Portfolio's total market value
8
SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (10/01/92) through 8/31/97 17.95%
Year Ended 8/31/97 15.16%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (7/15/96) through 8/31/97 24.74%
Year Ended 8/31/97 15.14%
*Assumes reinvestment of all dividends and
distributions. During the periods, certain fees and
expenses were waived or reimbursed. For the year ended
August 31, 1997, fees and expenses totaling 0.23% per
share were waived or reimbursed. Without such waivers
and reimbursements, total returns would have been lower.
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF SMALL COMPANY GROWTH PORTFOLIO AND THE WILSHIRE 5000 INDEX
[LINE CHARTS]
SMALL COMPANY GROWTH PORTFOLIO INVESTOR CLASS SHARES
====================================================
LABEL VALUES/YRS SMALL COMPANY INV WILSHIRE 5000
------------------------------------------------------
1 9/30/92 10000 10000
5 8/31/93 12850 11702
9 8/31/94 13519 12261
13 8/31/95 16633 14948
17 8/31/96 19544 17522
21 8/31/97 22506 24059
SMALL COMPANY GROWTH PORTFOLIO INSTITUTIONAL CLASS SHARES
=========================================================
LABEL VALUES/YRS SMALL CO GROWTH WILSHIRE 5000
----------------------------------------------------
1 7/15/96 10000 10000
2 8/31/96 11140 9763
6 8/31/97 12827 13406
These charts compare a $10,000 investment made in Investment Class Shares and
Institutional Class Shares of the Portfolio on their respective inception dates
to a $10,000 investment made in the index on those dates. All dividends and
capital gains are reinvested. Further information relating to the Portfolio's
performance, including expense reimbursements, is contained in the Financial
Highlights section of the respective prospectus and elsewhere in this report.
Past performance is not predictive of future performance.
9
SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY
The Small Company Value Portfolio had a very respectable year and did
better than many of its small capitalization counterparts. The total return for
the year ended August 31, 1997 33.73% for the Portfolio's Investment Class
Shares and 33.74% for Institutional Class Shares was well above the return of
26.85% for the average small cap fund, as measured by the Lipper Small Cap
Average for the same period, and just about 7% below the S&P 500 Index total
return for the same period. Three of the four most heavily weighted sectors
contributed greatly to the performance of the Portfolio. The only sector that
ended with lackluster performance was Utilities. The Finance sector was the
second best performing sector and is a traditional component of value
portfolios. The weight in the portfolio for the Finance sector averaged a little
under 40% for the year. Stocks like Central Fidelity Banks, Compass Bancshares,
Mercantile Bankshares and Provident Financial Group, Inc. showed great
performance for the year and held significant weights in the Portfolio.
[CALL-OUT]
PORTFOLIO INFORMATION(1)
(As of August 31, 1997)
Dividend Yield(2) 2.9%
Average Price/Book Ratio 2.3
Average Price/Earnings Ratio 16.6
(1) All averages are dollar-weighted
averages. The average book/price
ratio is calculated based on the
book value of each Portfolio
security as of the end of its
issuer's most recent fiscal year.
The average price/earnings ratio
is calculated based on the price
of each Portfolio security as of
the end of its issuer's most
recent fiscal year.
(2) The one-year dividend yield
corresponds to the stated
dividends of all underlying
securities held by the Portfolio
and is not an indication of the
current SEC yield of the
portfolio itself.
Value portfolios tend to focus on price to identify stocks for inclusion;
therefore, measures like price to book and price to earnings ratios are
important. The average price to book ratio for companies whose stock is held by
the Small Company Value Portfolio remained close to 2 and the average price to
earnings ratio remained in the 12 to 16 range. Another important measure is
dividend yield, which determines the amount of dividend income the Portfolio
expects to earn. Dividend income can provide a certain amount of consistent
return for investors. The Portfolio's dividend yield remained close to 3% for
the year.
[PIE CHART]
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1997)
Technology 2.87%
Utilities 17.74%
Finance 26.31%
Capital Goods 5.75%
Materials & Services 16.38%
Transportation 4.01%
Consumer Durables 4.34%
Consumer Non-Durables 19.12%
Energy 3.48%
*Based on percent of Portfolio's total market value
10
SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (9/30/92) through 8/31/97 14.78%
Year Ended 8/31/97 33.73%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
----------------------------
Inception (7/15/96) through 8/31/97 32.94%
Year Ended 8/31/97 33.74%
*Assumes reinvestment of all dividends and
distributions. During the periods, certain fees and
expenses were waived or reimbursed. For the year ended
August 31, 1997, fees and expenses totaling 0.29% per
share were waived or reimbursed. Without such waivers
and reimbursements, total returns would have been lower.
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF SMALL COMPANY VALUE PORTFOLIO AND THE WILSHIRE 5000 INDEX
[LINE CHARTS]
SMALL COMPANY VALUE PORTFOLIO INVESTMENT CLASS SHARES
=====================================================
LABEL VALUES/YRS SMALL COMPANY VAL WILSHIRE 5000
------------------------------------------------------
1 9/30/92 10000 10000
5 8/31/93 11972 11702
9 8/31/94 11971 12261
13 8/31/95 13388 14948
17 8/31/96 14729 17522
21 8/31/97 19697 24059
SMALL COMPANY VALUE PORTFOLIO INSTITUTIONAL CLASS SHARES
=========================================================
LABEL VALUES/YRS SMALL COMPANY VAL WILSHIRE 5000
------------------------------------------------------
1 7/15/96 10000 10000
2 8/31/96 10304 9763
6 8/31/97 13781 13406
These charts compare a $10,000 investment made in Investment Class Shares and
Institutional Class Shares of the Portfolio on their respective inception dates
to a $10,000 investment made in the index on those dates. All dividends and
capital gains are reinvested. Further information relating to the Portfolio's
performance, including expense reimbursements, is contained in the Financial
Highlights section of the respective prospectus and elsewhere in this report.
Past performance is not predictive of future performance.
11
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- 99.3%
AEROSPACE & DEFENSE-- 0.3%
6,500 Textron, Inc. $ 405,031
------------
APPAREL -- 1.0%
2,100 Jones Apparel Group* 105,394
11,700 NIKE, Inc. Class B 624,487
2,200 Reebok International Limited 96,663
2,400 Unifi, Inc. 92,100
2,600 V.F. Corporation 229,775
------------
1,148,419
------------
BANKS -- 2.6%
6,250 Fifth Third Bancorp 365,625
1,600 First Commerce Corporation 85,400
300 First Empire State Corporation 109,650
1,400 First Virginia Banks, Inc. 95,375
4,700 Northern Trust Corporation 249,688
14,800 Norwest Corporation 850,075
3,400 Star Banc Corporation 153,638
6,400 State Street Boston Corporation 319,200
6,850 Synovus Financial Corporation 179,384
5,400 US Bancorp 472,838
2,300 Zions Bancorporation 89,125
------------
2,969,998
------------
BUSINESS MACHINES -- 14.1%
4,400 Adaptec, Inc.* 211,200
5,500 Advanced Micro Devices, Inc.* 205,906
7,800 Bay Networks, Inc.* 275,925
4,000 BMC Software, Inc.* 250,500
6,100 Cabletron Systems, Inc.* 184,525
3,200 Ceridian Corporation* 110,600
26,200 Cisco Systems, Inc.* 1,974,824
27,150 Compaq Computer Corporation* 1,778,325
13,200 Dell Computer Corporation* 1,083,224
2,750 Diebold, Inc. 127,531
6,000 Gateway 2000, Inc.* 234,750
5,000 Iomega Corporation* 128,125
1,300 Keane, Inc.* 76,375
2,900 Lexmark International Group, Class A* 101,500
1,900 McAfee Associates, Inc.* 107,588
47,400 Microsoft Corporation* 6,265,687
See Notes to Financial Statements.
12
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
BUSINESS MACHINES -- (CONTINUED)
38,850 Oracle Systems Corporation* $1,481,156
5,800 Pitney Bowes, Inc. 442,975
9,700 Seagate Technology, Inc.* 370,419
14,600 Sun Microsystems, Inc.* 700,800
3,400 Western Digital Corporation* 163,625
------------
16,275,560
------------
BUSINESS SERVICES-- 2.5%
3,900 AccuStaff, Inc.* 103,594
11,500 Automatic Data Processing, Inc. 523,969
1,900 Cintas Corporation 132,525
2,900 Comdisco, Inc. 78,844
3,000 Computer Sciences Corporation* 223,125
3,000 Corrections Corporation of America* 111,000
2,600 Ecolab, Inc. 117,163
5,900 Equifax, Inc. 173,681
2,000 Fiserv, Inc.* 90,000
4,850 Interpublic Group of Companies, Inc. 236,437
3,200 Manpower, Inc. 136,600
3,200 Omnicom Group, Inc. 216,800
5,000 Parametric Technology Corporation* 232,188
4,250 Paychex, Inc. 145,563
2,400 Robert Half International, Inc.* 140,100
1,700 SunGard Data Systems, Inc.* 88,613
5,100 Total System Services, Inc. 119,531
------------
2,869,733
------------
CHEMICALS -- 0.9%
4,300 Air Products & Chemicals, Inc. 350,719
5,800 Engelhard Corporation 121,075
1,500 FMC Corporation* 124,594
2,400 Great Lakes Chemical Corporation. 111,600
5,500 Morton International, Inc. 182,875
3,900 Sigma-Aldrich Corporation 127,238
------------
1,018,101
------------
CONSTRUCTION-- 0.6%
2,900 Case Corporation 194,481
3,300 Fluor Corporation 185,212
6,800 Sherwin-Williams Company 186,575
See Notes to Financial Statements.
13
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
CONSTRUCTION -- (CONTINUED)
1,400 Vulcan Materials Company $ 123,024
------------
689,292
------------
CONSUMER DURABLES -- 0.4%
2,700 Hillenbrand Industries, Inc. 118,631
3,700 Leggett & Platt, Inc. 159,100
6,200 Newell Company, Inc. 244,124
------------
521,855
------------
CONTAINERS -- 0.2%
1,700 Sealed Air Corporation* 88,188
3,500 Sonoco Products Company 113,968
------------
202,156
------------
COSMETICS -- 4.7%
22,026 Gillette Company 1,824,028
26,900 Procter & Gamble Company 3,579,381
------------
5,403,409
------------
DRUGS & MEDICINE-- 13.7%
30,600 Abbot Laboratories 1,834,088
2,600 Allergan, Inc. 84,175
3,300 ALZA Corporation* 95,700
10,400 Amgen, Inc.* 515,450
2,300 Bard (C.R.), Inc. 79,350
4,800 Becton, Dickinson & Company 230,100
4,400 Biomet, Inc. 91,300
4,250 Cardinal Health, Inc. 281,563
26,400 Columbia/HCA Healthcare Corporation 833,250
4,960 Foundation Health Corporation* 157,790
2,900 Guidant Corporation 254,656
4,200 Health Management Associates, Inc. Class A* 124,163
52,800 Johnson & Johnson 2,993,100
2,500 Manor Care, Inc. 77,188
9,400 Medtronic, Inc. 849,525
47,800 Merck & Company, Inc. 4,388,638
4,800 Mylan Laboratories, Inc. 102,000
3,100 Omnicare, Inc. 89,706
1,600 PacifiCare Health Systems Class B* 109,400
2,500 PhyCor, Inc.* 73,594
See Notes to Financial Statements.
14
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
DRUGS & MEDICINE -- (CONTINUED)
1,300 Quintiles Transnational Corporation* $ 101,400
5,500 Rhone-Poulenc Rorer, Inc. 529,719
29,200 Schering-Plough Corporation 1,401,600
3,800 Stryker Corporation 151,763
3,600 St. Jude Medical, Inc.* 137,025
2,700 Vencor, Inc.* 108,338
2,700 Wellpoint Health Networks, Inc.* 146,813
------------
15,841,394
------------
ELECTRONICS -- 13.0%
5,100 ADC Telecommunications, Inc.* 189,338
3,600 Altera Corporation* 191,700
3,700 American Power Conversion Corporation* 97,125
3,575 Andrew Corporation* 88,928
7,300 Applied Materials, Inc.* 688,938
2,000 Arrow Electronics, Inc.* 122,875
3,900 Atmel Corporation* 137,962
3,900 Cadence Design Systems, Inc.* 185,494
2,100 Electronics For Imaging Company* 112,350
9,800 EMC Corporation* 502,863
2,000 General Signal Corporation 86,750
1,600 Harris Corporation 139,400
40,200 Hewlett-Packard Company 2,464,763
64,800 Intel Corporation 5,969,700
3,300 KLA-Tencor Corporation 233,888
3,000 Linear Technology Corporation 196,688
2,600 Maxim Integrated Products, Inc.* 179,725
8,400 Micron Technology, Inc.* 374,325
23,600 Motorola, Inc. 1,731,650
1,700 Perkin-Elmer Corporation 125,800
1,700 Raychem Corporation 158,206
2,400 SCI Systems, Inc.* 94,350
1,300 Tektronix, Inc. 72,231
7,200 Tellabs, Inc.* 429,750
3,300 Teradyne, Inc.* 183,769
2,500 Vishay Intertechnology, Inc. 66,718
2,894 Xilinx, Inc.* 137,465
------------
14,962,751
------------
ENERGY - RAW MATERIALS-- 1.1%
2,800 Cabot Corporation 76,650
------------
See Notes to Financial Statements.
15
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
ENERGY - RAW MATERIALS-- (CONTINUED)
6,900 Dresser Industries, Inc. $ 288,075
6,200 Enron Oil & Gas Company 149,574
2,800 ENSCO International, Inc.* 177,800
2,800 Reading & Bates Corporation* 101,674
1,600 Smith International, Inc.* 116,400
2,000 Transocean Offshore, Inc. 190,125
2,100 Western Atlas, Inc.* 166,425
------------
1,266,723
------------
ENVIRONMENTAL SERVICES-- 0.1%
2,900 U.S. Filter Corporation 104,400
------------
FINANCE -- 3.1%
2,600 Capital One Financial Corporation 100,100
4,100 Countrywide Credit Industries, Inc. 138,119
2,500 Edwards (A.G.), Inc. 99,374
1,100 FINOVA Group, Inc. 93,019
5,000 Franklin Resources, Inc. 386,875
5,300 Green Tree Acceptance Corporation 232,869
4,200 Household International, Inc. 465,938
1,400 Kansas City Southern Industries, Inc. 104,825
13,150 MBNA Corporation 505,453
13,200 Merrill Lynch & Company, Inc. 811,800
3,600 Paine Webber Group, Inc. 138,375
2,300 Price (T. Rowe) Associates, Inc. 126,500
6,900 Schwab (Charles) Corporation 292,819
2,700 United Asset Management Corporation 72,394
------------
3,568,460
------------
FOOD & AGRICULTURE-- 10.0%
18,400 Campbell Soup Company 853,300
98,200 Coca-Cola Company 5,628,088
9,500 ConAgra, Inc. 610,969
6,100 Hershey Foods Corporation 325,588
16,400 Kellogg Company 733,900
60,800 PepsiCo, Inc. 2,188,800
3,250 Pioneer Hi-Bred International, Inc. 278,484
5,300 Quaker Oats Company 249,100
6,800 Sysco Corporation 241,400
See Notes to Financial Statements.
16
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
FOOD & AGRICULTURE -- (CONTINUED)
4,000 Whitman Corporation $ 98,000
4,600 Wrigley (WM.) Jr. Company 333,500
------------
11,541,129
------------
INSURANCE-- 3.8%
5,337 AFLAC, Inc. 293,869
27,912 American International Group, Inc. 2,634,195
7,200 Conseco, Inc. 309,600
4,600 MGIC Investment Corporation 231,437
3,100 Oxford Health Plans, Inc.* 226,688
2,800 Progressive Corporation of Ohio 277,200
1,600 ReliaStar Financial Corporation 119,600
1,400 The PMI Group, Inc. 80,938
4,700 SunAmerica, Inc. 253,213
------------
4,426,740
------------
MEDIA -- 1.0%
2,400 Belo (A.H.) Corporation, Series A 102,900
5,600 Gannett Company, Inc. 545,650
3,800 Gaylord Entertainment Company, Class A 88,588
4,800 Tribune Company 237,300
500 Washington Post Company 210,375
------------
1,184,813
------------
MOTOR VEHICLES -- 0.6%
3,100 Eaton Corporation 279,194
2,500 Echlin, Inc. 92,656
3,000 Harley-Davidson, Inc. 162,375
2,600 Lear Corporation* 119,113
------------
653,338
------------
NONDURABLE & ENTERTAINMENT -- 1.9%
5,000 Hasbro, Inc. 134,375
4,700 International Game Technology 94,000
11,525 Mattel, Inc. 385,367
27,300 McDonald's Corporation 1,291,631
3,100 Starbucks Corporation* 127,100
5,100 Wendy's International, Inc. 122,719
------------
2,155,192
------------
See Notes to Financial Statements.
17
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
PRODUCER GOODS -- 10.5%
2,500 AGCO Corporation $ 81,250
11,200 AlliedSignal, Inc. 924,700
1,700 Avnet, Inc. 117,619
15,000 Caterpillar, Inc. 870,937
1,800 Crane Company 79,425
4,400 Dover Corporation 303,875
130,100 General Electric Company 8,131,250
2,100 Grainger (W.W.), Inc. 186,506
2,000 Harsco Corporation 90,125
9,900 Illinois Tool Works, Inc. 478,913
4,400 Ingersoll-Rand Company 264,550
3,300 Johnson Controls, Inc. 157,369
4,300 Solectron Corporation* 180,063
3,818 Thermo Instrument Systems, Inc.* 152,481
2,100 Weatherford Enterra, Inc.* 96,730
------------
12,115,793
------------
RETAIL-- 6.9%
10,000 Albertsons, Inc. 343,750
11,500 American Stores Company 272,406
5,900 AutoZone, Inc.* 166,675
2,700 Bed Bath & Beyond, Inc.* 83,700
3,900 Circuit City Stores, Inc. 138,938
3,600 CompUSA, Inc.* 111,375
3,318 Consolidated Stores Corporation* 124,218
16,225 CUC International, Inc.* 381,288
3,563 Dollar General Corporation 147,642
10,800 Gap, Inc. 479,925
3,200 General Nutrition Companies, Inc.* 88,800
28,749 Home Depot, Inc. 1,356,593
2,900 Kohl's Corporation* 199,918
6,800 Lowe's Companies, Inc. 235,025
2,400 Pep Boys-Manny, Moe, & Jack 63,600
19,400 Walgreen Company 522,587
89,800 Wal-Mart Stores, Inc. 3,187,900
------------
7,904,340
------------
SHIPPING -- 0.1%
2,450 Illinois Central Corporation 82,228
2,000 Wisconsin Central Transportation Corporation* 62,000
------------
144,228
------------
See Notes to Financial Statements.
18
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
STEEL -- 0.4%
3,500 Nucor Corporation $ 198,405
2,500 Timken Company 93,593
3,400 USX-U.S. Steel Group 119,424
------------
411,422
------------
TELECOMMUNICATIONS (WIRELESS) -- 0.1%
2,700 QUALCOMM, Inc.* 124,875
------------
TELEPHONE -- 1.6%
2,400 Century Telephone Enterprises 87,150
3,100 LCI International Inc.* 74,400
27,100 MCI Communications Corporation 772,350
17,300 Sprint Corporation 813,100
2,400 Telephone & Data Systems, Inc. 94,800
------------
1,841,800
------------
TIRE & RUBBER -- 0.3%
2,300 Danaher Corporation 123,194
6,100 Goodyear Tire & Rubber Company 375,912
------------
499,106
------------
TRANSPORTATION - AIR -- 0.2%
2,300 UAL Corporation* 175,232
------------
TRAVEL & RECREATION-- 2.9%
3,900 Brunswick Corporation 118,950
2,900 Callaway Golf Company 97,694
11,800 Carnival Corporation 516,988
3,900 Circus Circus Enterprises, Inc.* 93,356
26,800 Disney (Walt) Company 2,058,574
4,000 Harrah's Entertainment, Inc.* 89,750
2,300 MGM Grand, Inc.* 92,288
6,900 Mirage Resorts, Inc.* 185,006
2,000 Promus Hotel Corporation* 77,624
------------
3,330,230
------------
See Notes to Financial Statements.
19
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- CONTINUED AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- 0.7%
6,600 AES Corporation* $ 244,200
2,500 CalEnergy Company 82,813
10,100 Enron Corporation 389,481
2,700 MCN Corporation 82,856
------------
799,350
------------
TOTAL COMMON STOCKS (Cost $91,446,230) 114,554,870
===========
TOTAL INVESTMENTS (Cost $91,446,230**) 99.3% 114,554,870
OTHER ASSETS AND LIABILITIES (Net) 0.7% 806,349
----- -------------
NET ASSETS 100.0% $ 115,361,219
===== =============
- --------------------
* Non-income producing security
** Aggregate cost for Federal tax purposes is $91,699,522.
See Notes to Financial Statements.
20
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- 98.1%
AEROSPACE & DEFENSE -- 1.6%
2,300 B.F. Goodrich Company $ 96,887
2,600 General Dynamics Corporation 207,025
2,400 Northrop Grumman 280,950
7,000 Textron, Inc. 436,188
------------
1,021,050
------------
APPAREL-- 0.4%
2,600 V.F. Corporation 229,775
------------
BANKS -- 24.7%
3,450 AmSouth Bancorporation 145,116
15,900 Bank of New York, Inc. 709,538
29,300 BankAmerica Corporation 1,928,306
6,107 BankBoston Corporation 507,644
3,300 Bankers Trust New York Corporation 342,375
17,690 Banc One Corporation 948,626
8,100 Barnett Banks, Inc. 551,813
4,500 BB&T Corporation 232,875
2,000 Charter One Financial 108,750
17,692 Chase Manhattan Corporation 1,967,129
4,300 Comerica, Inc. 304,494
4,500 Crestar Financial Corporation 201,094
3,700 First of America Bank Corporation 190,550
2,700 First American Corporation 114,075
12,987 First Chicago NBD 931,817
1,500 First Virginia Banks, Inc. 102,188
10,700 Fleet Financial Group, Inc. 689,481
1,900 GreenPoint Financial 116,969
6,330 Huntington Bancshares, Inc. 204,934
10,800 Mellon Bank Corporation 519,750
3,100 Mercantile Bancorp 213,706
9,100 National City Corporation 514,150
30,200 NationsBank Corporation 1,793,125
1,929 Old Kent Financial Corporation 118,151
13,400 PNC Bank 579,550
2,200 Republic New York Corporation 235,538
2,500 Signet Banking Corporation 129,531
4,300 SouthTrust Corporation 192,425
4,000 Summit Bankcorp 237,500
See Notes to Financial Statements.
21
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
4,679 U.S. Bancorp $ 409,705
6,600 Wachovia Corporation 410,850
------------
15,651,755
------------
CHEMICALS -- 2.4%
4,000 ARCO Chemical Company 175,000
9,700 Dow Chemical Company 858,450
3,300 Eastman Chemical Company 197,380
2,400 Great Lakes Chemical Corporation 111,600
2,400 Lubrizol Corporation 105,150
2,100 Olin Corporation 93,450
------------
1,541,030
------------
CONSTRUCTION -- 0.2%
1,400 Vulcan Materials Company 123,024
------------
DOMESTIC OIL-- 1.0%
3,000 Ashland, Inc. 150,374
2,800 Cabot Corporation 76,650
2,000 Kerr--McGee Corporation 124,250
2,300 MAPCO, Inc. 69,000
1,800 Murphy Oil Corporation 96,638
3,000 Sun Company, Inc. 116,625
------------
633,537
------------
DRUGS & MEDICINE-- 0.2%
3,100 Mallinckrodt, Inc. 112,762
------------
ELECTRONICS -- 0.5%
1,600 Harris Corporation 139,400
1,800 National Services Industries, Inc. 79,650
2,200 Thomas & Betts Corporation 123,200
------------
342,250
------------
ENERGY -- 2.1%
7,500 Dominion Resources, Inc. 270,000
4,400 DPL, Inc. 104,225
4,000 CMS Energy Corporation 143,750
3,100 DQE 98,425
5,900 DTE Energy Company 174,788
See Notes to Financial Statements.
22
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
ENERGY -- (CONTINUED)
13,600 Occidental Petroleum Corporation $ 318,750
9,200 PECO Energy Company 219,075
------------
1,329,013
------------
FINANCE -- 6.9%
2,600 A.G. Edwards, Inc. 103,350
4,928 Bear Stearns Company, Inc. 194,964
2,200 Beneficial Corporation 157,438
8,500 CoreState Financial Corporation 522,750
1,700 First Commerce Corporation 90,738
4,575 First Securities Corporation 129,244
23,650 First Union Corporation 1,136,678
5,900 Firstar Corporation 198,756
9,128 KeyCorp 553,385
1,800 MBIA, Inc. 203,850
1,550 Pacific Century Financial 76,434
3,700 Paine Webber Group, Inc. 142,219
5,400 Regions Financial Corporation 184,950
4,600 Salomon, Inc. 275,425
2,800 United Asset Management Corporation 75,075
5,200 Washington Mutual, Inc. 311,350
------------
4,356,606
------------
FOOD & AGRICULTURE-- 1.0%
12,100 American Stores Company 286,618
2,400 Giant Food, Inc. Class A 78,000
3,100 Hormel Foods Corporation 92,225
3,100 McCormack & Company 73,238
2,700 Supervalu, Inc. 105,975
------------
636,056
------------
INSURANCE -- 5.8%
2,600 American Financial Group, Inc. 112,450
10,100 American General Corporation 486,694
7,400 Chubb Corporation 494,875
3,100 CIGNA Corporation 567,493
2,300 Cincinnati Financial Corporation 186,875
3,000 Jefferson-Pilot Corporation 208,688
4,200 Lincoln National Corporation 281,138
3,500 Old Republic International Corporation 125,781
See Notes to Financial Statements.
23
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
INSURANCE -- (CONTINUED)
1,600 ReliaStar Financial Corporation $ 119,600
5,200 SAFECO Corporation 255,450
3,400 St. Paul Companies, Inc. 249,475
5,800 Torchmark Corporation 218,587
2,700 Transamerica Corporation 266,119
1,500 Unitrin, Inc. 90,000
------------
3,663,225
------------
INTERNATIONAL OIL-- 13.8%
20,400 Amoco Corporation 1,929,075
13,200 Atlantic Richfield 990,000
26,900 Chevron Corporation 2,083,068
32,500 Mobil Corp. 2,364,375
1,900 Pennzoil Company 146,656
10,800 Texaco, Inc. 1,244,700
------------
8,757,874
------------
MEDIA -- 0.5%
4,100 Dow Jones & Company, Inc. 175,531
4,400 Readers Digest Association, Inc. Class A 130,075
------------
305,606
------------
MEDICAL SUPPLIES-- 0.3%
2,300 Bard (C.R.) Inc 79,350
2,200 Bausch & Lomb, Inc. 90,338
------------
169,688
------------
MOTOR VEHICLES -- 9.3%
28,500 Chrysler Corporation 1,001,062
1,700 Cummins Engine, Inc. 130,794
4,200 Dana Corporation 193,463
3,200 Eaton Corporation 288,200
2,600 Echlin, Inc. 96,362
49,100 Ford Motor Company 2,111,300
30,100 General Motors Corporation 1,888,775
3,200 PACCAR, Inc. 151,600
------------
5,861,556
------------
See Notes to Financial Statements.
24
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
NON-DURABLE & ENTERTAINMENT -- 0.2%
3,100 American Greetings Corporation, Class A $ 107,725
------------
NON-FERROUS METALS -- 0.5%
3,800 Cyprus Amax Minerals Company 95,950
2,500 Phelps Dodge Corporation 201,094
------------
297,044
------------
PAPER & FOREST PRODUCTS-- 2.3%
1,600 Bowater, Inc. 81,900
1,800 Consolidated Papers 104,962
3,500 Fort James Corporation 147,000
2,100 Mead Corporation 148,969
2,300 Temple-Inland, Inc. 148,350
4,100 Westvaco Corporation 138,888
8,100 Weyerhauser Company 467,775
2,400 Willamette Industries, Inc. 191,400
------------
1,429,244
------------
PRODUCER GOODS -- 2.5%
4,800 Cooper Industries, Inc. 255,900
2,300 Harsco Corporation 103,644
2,800 Hubbell, Inc. Class B 128,450
4,400 Ingersoll-Rand Company 264,550
3,400 Johnson Controls, Inc. 162,138
3,100 Parker-Hannifin Corporation 199,369
2,500 Snap-On, Inc. 105,000
7,000 Tenneco, Inc. 339,937
------------
1,558,988
------------
RAILROADS -- 1.8%
5,200 Norfolk Southern Corporation 509,600
10,100 Union Pacific Corporation 655,869
------------
1,165,469
------------
RETAIL-- 2.3%
11,200 Limited, Inc. 254,800
9,800 May Deptartment Stores Company 527,363
1,500 Mercantile Stores Company, Inc. 93,656
10,100 Penny (J.C.) Company, Inc. 606,000
------------
1,481,819
------------
See Notes to Financial Statements.
25
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
STEEL -- 0.1%
2,600 Timken Company $ 97,338
------------
TELEPHONE -- 0.4%
7,600 ALLTEL Corporation 240,350
------------
TIRE & RUBBER -- 0.1%
3,200 Cooper Tire & Rubber 80,400
------------
TOBACCO-- 1.0%
7,000 Fortune Brands 240,625
11,100 RJR Nabisco Holdings Corporation 386,419
------------
627,044
------------
TRAVEL & RECREATION-- 0.3%
4,000 Brunswick Corporation 122,000
4,000 Viad Corporation 72,750
------------
194,750
------------
UTILITIES -- 15.7%
5,000 Allegheny Power System, Inc. 145,312
7,800 American Electric Power, Company 340,762
6,000 Baltimore Gas & Electric Company 162,000
13,826 Bell Atlantic Corporation 1,000,628
6,100 Carolina Power & Light Company 205,875
8,800 Central & South West Corporation 182,050
6,500 CINergy Corporation 214,906
9,700 Consolidated Edison Company New York, Inc. 297,063
3,900 Consolidated Natural Gas Company 230,343
14,808 Duke Energy Corporation 717,262
17,000 Edison International 410,125
4,700 Enova Corporation 112,800
9,800 Entergy Corporation 243,163
3,900 Florida Progress Corporation 125,531
7,700 FPL Group, Inc. 358,050
4,900 General Public Utilities Corporation 164,763
9,600 Houston Industries 194,400
5,000 Long Island Lighting Company 123,438
2,700 MCN Corporation 82,856
2,700 New England Electric System 103,275
2,600 NIPSCO Industries 106,113
See Notes to Financial Statements.
26
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
3,100 Northern States Power $ 149,188
6,200 Ohio Edison Company 136,400
3,400 Pacific Enterprises 111,988
12,200 PacifiCorp 253,150
16,800 PG&E Corporation 389,550
3,400 Pinnacle West Capital Corporation 109,863
4,900 Potomac Electric Power Company 111,168
6,700 PP&L Resources, Inc. 146,981
9,600 Public Service Entreprise 238,200
3,400 Puget Sound Power & Light 86,275
4,300 SCANA Corporation 103,737
27,900 Southern Company 587,644
4,800 TECO Energy, Inc. 115,500
9,300 Texas Utilities Company 324,338
8,800 Unicom Corporation 207,900
4,200 Union Electric Company 156,188
19,600 US West, Inc. 701,925
2,600 Western Resources, Inc 87,100
6,500 Williams Companies, Inc. 302,656
4,600 Wisconsin Energy Corporation 117,587
------------
9,958,053
------------
WINE & SPIRITS -- 0.2%
2,800 Brown-Forman Corporation, Class B 135,100
------------
TOTAL COMMON STOCKS (Cost $51,738,577) 62,108,131
==========
TOTAL INVESTMENTS (Cost $51,738,577**) 98.1% 62,108,131
OTHER ASSETS AND LIABILITIES (Net) 1.9% 1,215,065
----- -------------
NET ASSETS 100.0% $ 63,323,196
===== =============
- --------------------
** Aggregate cost for Federal tax purposes is $52,004,647
See Notes to Financial Statements.
27
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- 99.7%
ADVERTISING & MARKETING -- 0.3%
2,200 HA-LO Industries* $ 55,275
------------
AEROSPACE & DEFENSE -- 0.8%
2,200 AAR Corporation 73,837
2,700 Tracor, Inc.* 81,338
------------
155,175
------------
AIR TRANSPORTATION-- 1.8%
3,100 Alaska Air Group, Inc.* 85,056
9,400 Comair Holdings, Inc. 252,625
------------
337,681
------------
APPAREL -- 3.0%
8,400 Nautica Enterpricses, Inc.* 200,025
3,500 St. John Knits, Inc. 147,438
1,500 Wet Seal, Inc. Class A* 32,625
8,850 Wolverine World Wide, Inc. 195,806
------------
575,894
------------
BUSINESS MACHINES-- 7.0%
1,800 ANADIGICS, Inc.* 89,100
2,300 Applied Magnetics Corporation* 84,956
1,600 Auspex Systems, Inc.* 17,600
3,100 Broderdund Software Corporation* 91,450
3,500 Computer Products, Inc.* 106,313
3,140 Comverse Technology, Inc.* 144,243
11,575 Concord EFS, Inc.* 321,206
1,300 Fair Issac & Company, Inc. 54,844
4,900 S3, Inc.* 78,706
5,300 Tech Data Corporation* 206,369
3,100 Wind River Systems, Inc.* 132,913
------------
1,327,700
------------
BUSINESS SERVICES -- 10.9%
2,700 ABR Information Services, Inc.* 72,563
3,200 Alternative Resources Corporation* 71,600
8,600 American Management Systems, Inc.* 215,000
1,600 Bowne & Company, Inc. 46,300
4,300 Cambridge Technology Partners, Inc.* 138,674
2,300 CDI Corporation* 81,075
See Notes to Financial Statements.
28
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
BUSINESS SERVICES -- (CONTINUED)
200 Cerner Corporation* $ 5,900
2,300 CIBER, Inc.* 91,856
2,600 Computer Task Group, Inc.* 116,187
5,100 DeVRY, Inc.* 138,338
3,400 Dialogic Corporation* 136,000
1,600 Jacobs Engineering Group, Inc.* 51,200
7,700 Mentor Graphics Corporation* 89,512
5,700 National Data Corporation 213,394
1,700 SEACOR Smit, Inc. 92,013
3,500 Sequent Computer Systems, Inc.* 98,656
2,300 Technology Solutions, Inc.* 53,475
3,800 ThermoTrex Corporation* 96,663
3,000 Vantive Corporation* 91,500
1,400 Volt Information Sciences, Inc.* 78,138
600 Wackenhut Corrections Corporation 15,900
2,800 Zebra Technologies Corporation, Class A* 82,250
------------
2,076,194
------------
CHEMICALS-- 1.2%
12,800 Airgas, Inc.* 232,800
------------
CONSUMER SERVICES -- 0.3%
2,500 Equity Corporation International* 57,656
------------
CONSTRUCTION -- 5.0%
6,200 Lennar Corporation 231,724
1,300 Lone Star Industries 69,063
2,700 Medusa Corporation 126,900
1,700 NCI Building Systems, Inc.* 61,200
9,700 Oakwood Homes Corporation 263,113
5,700 Toll Brothers, Inc.* 122,550
2,400 U.S. Home Corporation* 84,750
------------
959,300
------------
CONSUMER DURABLES-- 3.3%
9,300 Blyth Industries, Inc.* 343,519
5,800 Champion Enterprises, Inc.* 100,050
2,400 Coachmen Industries, Inc 44,400
3,700 Shorewood Packaging Corporation* 80,012
2,100 Watsco, Inc. Class A 56,963
------------
624,944
------------
See Notes to Financial Statements.
29
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
DRUGS & MEDICINE -- 11.7%
2,200 ADAC Laboratories, Inc. $ 43,175
3,200 American Oncology Resources, Inc.* 43,800
4,900 Arrow International 145,163
2,550 Bio-Rad Laboratories, Inc. Class A* 71,878
1,700 Datascope Corporation* 35,912
6,950 Genesis Health Ventures, Inc.* 242,381
1,300 Greenfield Industries, Inc. 34,287
2,700 Hologic, Inc.* 65,475
6,200 Invacare Corporation 130,200
3,000 Jones Medical Industries, Inc 89,250
4,100 Mentor Corporation 126,075
3,858 Nature's Sunshine Products, Inc. 80,536
1,900 Pediatrix Medical Group, Inc.* 79,087
5,100 Renal Treatment Centers, Inc.* 172,763
4,200 Respironics, Inc.* 97,125
5,400 RoTech Medical Corporation* 97,200
4,900 Sofamor Danek Group, Inc.* 234,894
7,800 Thermedics, Inc.* 143,325
6,700 Universal Health Services, Inc. Class B* 293,544
------------
2,226,070
------------
ELECTRONICS -- 17.6%
7,400 Acxiom Corporation* 131,350
2,700 Altron, Inc.* 54,675
2,600 Belden, Inc. 100,750
300 Burr-Brown Corporation* 10,650
1,600 Coherent, Inc.* 73,400
2,700 Credence Systems Corporation* 127,069
6,100 Cypress Semiconductor Corporation* 108,275
6,000 Dallas Semiconductor Corporation 229,875
1,300 Dynatech Corporation* 49,724
2,200 Electroglas, Inc.* 70,400
2,600 Etec Systems, Inc.* 174,200
1,100 Fluke Corporation 54,450
500 FSI International, Inc.* 9,250
5,000 Gentex Corporation* 120,000
5,200 Input/Output, Inc.* 109,200
600 International Rectifier Corporation* 13,688
3,800 Kent Electronics Corporation* 142,262
2,100 Lam Research Corporation* 118,650
2,800 Lattice Semiconductor Corporation* 178,325
See Notes to Financial Statements.
30
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- (CONTINUED)
2,400 Level One Communications, Inc.* $ 85,500
3,100 Marshall Industries* 123,031
1,100 Novellus Systems, Inc.* 126,087
2,400 Photronics, Inc.* 141,600
6,200 PictureTel Corporation 77,500
6,500 Presstek, Inc.* 260,000
1,200 Proxim, Inc.* 29,700
5,200 Silicon Valley Group, Inc.* 175,500
8,450 Symbol Technologies, Inc. 312,650
300 Unitrode Corporation* 23,400
4,400 Wyman-Gordon Company* 120,175
------------
3,351,336
------------
ENERGY - RAW MATERIALS -- 4.7%
3,600 KCS Energy, Inc. 96,075
2,900 Oceaneering International, Inc.* 67,606
1,200 Seitel, Inc.* 47,775
2,600 Swift Energy Company* 67,438
4,600 Tejas Gas Corporation* 218,500
2,800 Tersoro Petroleum Corporation* 47,950
2,700 Varco International, Inc.* 107,325
5,600 Vintage Petroleum, Inc. 240,450
------------
893,119
------------
FINANCE -- 3.9%
2,400 Aames Financial Corporation 42,750
3,600 AmeriCredit Corporation* 96,300
4,700 CMAC Investment Corporation 216,788
3,800 Henry (Jack) & Associates 95,000
3,800 Legg Mason, Inc. 234,650
2,400 Pre Paid Legal Services, Inc. 57,000
------------
742,488
------------
FOOD & AGRICULTURE-- 1.6%
3,400 Richfood Holdings, Inc. 76,500
3,200 Smart & Final, Inc. 75,600
2,900 Smithfield Foods, Inc.* 159,863
------------
311,963
------------
See Notes to Financial Statements.
31
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
INSURANCE -- 4.4%
1,100 CRA Managed Care, Inc.* $ 61,050
2,100 Executive Risk, Inc. 121,406
1,200 Markel Corporation* 172,650
9,300 UICI* 279,000
4,200 Vesta Insurance Group, Inc. 207,113
------------
841,219
------------
MEDIA -- 0.6%
1,200 AMC Entertainment, Inc.* 23,400
2,200 BET Holdings, Inc. Class A* 86,625
------------
110,025
------------
NONDURABLE & ENTERTAINMENT-- 2.5%
6,500 Applebee's International, Inc. 165,750
4,300 Catalina Marketing Corporation* 199,143
2,000 Regis Corporation 48,374
4,700 Sodak Gaming, Inc.* 64,038
------------
477,305
------------
NON-FERROUS METALS-- 0.5%
2,900 Wolverine Tube, Inc.* 93,162
------------
PAPER & FOREST PRODUCTS -- 0.3%
2,200 Lydall, Inc.* 52,250
------------
PRODUCER GOODS-- 2.3%
7,100 Compucom Systems, Inc.* 71,444
3,400 Ionics, Inc.* 145,350
6,400 JLG Industries, Inc. 74,800
1,700 Kuhlman Corporation 48,238
4,300 WMS Industries, Inc.* 106,156
------------
445,988
------------
RETAIL-- 3.5%
1,700 Buckle, Inc. 39,525
9,950 Claire's Stores, Inc. 208,950
2,800 Dress Barn, Inc.* 57,400
1,800 Ethan Allen Interiors, Inc. 132,300
700 Fabri-Centers of America, Class A* 17,063
1,000 Friedman's, Inc., Class A* 16,624
See Notes to Financial Statements.
32
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
3,500 Just For Feet, Inc.* $ 45,938
2,800 Stein Mart, Inc.* 78,400
3,500 West Marine, Inc.* 66,500
------------
662,700
------------
TELEPHONE -- 4.7%
2,300 Allen Telecom, Inc.* 54,913
9,900 Aspect Telecommunications, Inc.* 217,800
5,400 MasTec, Inc.* 252,113
9,000 Octel Communications Corporation* 273,375
5,000 Premisys Communications, Inc.* 103,437
------------
901,638
------------
TIRE & RUBBER -- 0.9%
5,400 Safeskin Corporation* 179,550
------------
TRAVEL & RECREATION-- 3.4%
3,100 Anchor Gaming Company* 248,000
5,200 GTECH Holding Corporation* 156,325
7,300 Regal Cinemas, Inc.* 207,138
2,500 Rio Hotel & Casino, Inc.* 48,906
------------
660,369
------------
TRUCKING & FREIGHT -- 3.5%
2,600 Airborne Freight Corporation 128,050
5,100 Expeditors International of Washington, Inc. 186,788
3,223 Heartland Express, Inc. 79,769
2,100 Landstar System, Inc.* 57,488
2,700 Swift Transportation Company, Inc.* 78,975
6,300 Werner Enterprises, Inc. 137,812
------------
668,882
------------
TOTAL COMMON STOCKS (COST $15,467,741) 19,020,683
============
TOTAL INVESTMENTS (Cost $15,467,741**) 99.7% 19,020,683
OTHER ASSETS AND LIABILITIES (Net) 0.3% 49,197
----- ------------
NET ASSETS 100.0% 19,069,880
===== ============
___________________
* Non-income procucing security.
** Aggregate cost for Federal tax purposes is $15,615,261.
See Notes to Financial Statements.
33
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 99.7%
AEROSPACE & DEFENSE-- 0.7%
6,200 AAR Corporation $208,088
1,800 Curtiss-Wright Corporation 131,400
------------
339,488
------------
APPAREL -- 2.1%
6,200 Brown Group, Inc. 103,463
7,600 Guilford Mills, Inc. 165,300
7,200 Kellwood Company 260,100
9,400 Phillips-Vanheusen 135,125
6,900 Springs Industries, Inc., Class A 324,300
------------
988,288
------------
BANKS -- 16.2%
7,650 Associated Banc-Corp 321,300
7,150 BanCorp South, Inc. 227,012
4,300 Bankers Corporation 121,475
5,400 CCB Financial Corporation 436,725
8,800 Centura Banks, Inc. 500,500
4,900 Citizens Banking Corporation of Michigan 193,550
5,300 Commerce Bancorp, Inc. 196,100
7,102 F&M National Corporation 193,530
3,600 FirstBank of Illinois Corporation 155,700
7,700 First Commonwealth Financial 164,587
13,000 First Hawaiian, Inc. 479,375
9,438 First Michigan Bank Corporation 351,565
6,100 Fort Wayne National Corporation 192,150
13,554 Fulton Financial Corporation 372,735
7,381 HUBCO, Inc. 226,043
4,800 Jefferson Bankshares, Inc. 186,000
4,800 Magna Group, Inc. 121,800
8,027 Mid Am, Inc. 138,459
7,366 New York Bancorp, Inc. 224,663
4,100 ONBANCorp, Inc. 213,200
7,525 One Valley Bancorp, Inc. 323,105
3,160 Provident Bankshares 142,200
14,050 Provident Financial Group, Inc. 665,619
3,999 Queens County Bancorp. 215,446
3,900 S&T Bancorp, Inc. 141,375
6,900 Susquehanna Bancshares, Inc. 189,750
6,100 TR Financial Corporation 168,513
7,027 Trustco Bank Corporation 180,945
See Notes to Financial Statements.
34
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
6,100 United Bankshares, Inc. $ 280,600
6,500 Whitney Holding Corporation 261,625
------------
7,585,647
------------
BROADCASTING & ADVERTISING-- 0.5%
8,500 True North Communications 213,563
------------
BUSINESS SERVICES-- 2.9%
6,900 ABM Industries, Inc. 169,481
5,650 American Business Products 130,656
6,200 Bowne & Company, Inc. 179,413
4,700 New England Business Service 143,350
20,000 Safety-Kleen Corporation 403,750
9,800 Standard Register Company 335,038
------------
1,361,688
------------
CHEMICALS -- 3.4%
13,700 Calgon Carbon Corporation 188,375
7,900 Dexter Corporation 300,200
8,800 Ferro Corporation 331,100
8,100 Geon Company 160,988
15,600 Lawter International, Inc. 204,750
9,600 Mississippi Chemical Corporation 208,200
2,500 NCH Corporation 170,000
------------
1,563,613
------------
CONSTRUCTION -- 1.5%
7,500 Centex Construction Products, Inc. 214,688
6,300 Granite Construction, Inc. 132,300
8,100 Interface, Inc. 226,800
3,900 Lawson Products, Inc. 105,300
------------
679,088
------------
CONSUMER DURABLES-- 3.0%
4,500 Bassett Furniture, Inc. 123,750
7,100 Kimball International, Inc. Class B 319,500
6,100 La-Z Boy Companies 215,787
2,600 National Presto Industries 103,350
7,700 Russ Berrie & Company, Inc. 220,412
3,400 Skyline Corporation 98,388
See Notes to Financial Statements.
35
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
CONSUMER DURABLES -- (CONTINUED)
9,300 Sturm Ruger & Company, Inc. $ 182,513
4,200 Toro Company 155,925
------------
1,419,625
------------
COSMETICS -- 0.3%
3,500 Chemed Corporation 131,688
------------
DRUGS & MEDICINE-- 2.8%
7,096 Block Drug, Inc. Class A 337,060
4,700 Diagnostic Products Corporation 130,425
10,500 Herbalife International 248,062
11,100 Owens & Minor, Inc. 150,544
10,700 Wellman, Inc. 243,425
5,700 West Company, Inc. 177,413
------------
1,286,929
------------
ELECTRONICS -- 1.9%
6,400 ADAC Laboratories 125,600
15,800 EG&G, Inc. 335,750
1 Flowserve Corporation 34
3,000 Fluke Corporation 148,500
8,100 Gerber Scientific, Inc. 175,162
3,900 Park Electrochemical Corporation 115,538
------------
900,584
------------
ENERGY -- 2.5%
6,600 AMCOL International Corporation 112,200
18,020 Atlantic Energy, Inc. 311,971
5,600 Atmos Energy Corporation 152,600
7,300 Berry Petroleum, Class A 134,137
7,000 Eastern Enterprises 249,813
7,800 Indiana Energy, Inc. 198,413
------------
1,159,134
------------
FINANCE -- 4.2%
5,400 Bay View Capital Corporation 139,725
4,300 Chittenden Corporation 147,275
12,400 First Financial Corporation Wisconsin 399,900
4,900 FNB Corporation 148,225
5,700 Gallagher (Arthur J.) & Company 203,775
See Notes to Financial Statements.
36
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
FINANCE -- (CONTINUED)
4,300 Interra Financial, Inc. $ 187,050
3,400 JSB Financial, Inc. 154,062
7,300 Morgan Keegan, Inc. 186,606
15,200 Phoenix Duff & Phelps 115,900
5,600 Standard Financials, Inc. 142,800
5,700 Thornburg Mortgage Asset Corporation 131,813
------------
1,957,131
------------
FOOD & AGRICULTURE-- 3.9%
14,600 Bob Evans Farms, Inc. 259,150
6,800 Church & Dwight Company, Inc. 194,650
13,800 Dean Foods Company 612,375
6,200 International Multifoods 166,625
10,000 Smucker (J.M.) Company, Class A 264,375
8,700 Universal Foods Corporation 337,669
------------
1,834,844
------------
INSURANCE-- 5.8%
14,000 Alfa Corporation 204,750
6,950 ALLIED Group, Inc. 307,538
4,300 E.W. Blanch Holdings, Inc. 126,313
4,000 First American Financial Corporation 179,000
3,300 Foremost Corporation of America 183,563
5,200 Guaranty National Corporation 146,575
4,900 Harleysville Group, Inc. 207,638
4,100 MMI Companies 102,756
12,000 Ohio Casualty Company 558,000
5,000 Selective Insurance Group 246,250
4,200 Trenwick Group, Inc. 152,775
4,300 Washington National Corporation 126,850
6,100 Zenith National Insurance Corporation 164,317
------------
2,706,325
------------
LEASING (EQUIPMENT) -- 1.4%
14,400 Rollins Truck Leasing Corporation 233,100
7,000 GATX Corporation 437,938
------------
671,038
------------
LIQUOR -- 1.0%
12,800 Coors, Adolph Company, Class B 472,000
------------
See Notes to Financial Statements.
37
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
MACHINE & MACHINE TOOLS-- 0.5%
7,200 Regal Beloit $ 216,450
------------
MANUFACTURING INDUSTRIES-- 1.4%
7,500 Brady (W.H.) Company 227,812
4,800 Fuller (H.B.) Company 264,900
4,600 Standex International Corporation 145,188
------------
637,900
------------
MEDIA -- 1.3%
10,200 Banta Corporation 275,400
9,100 Media General, Inc. Class A 334,425
------------
609,825
------------
MOTOR VEHICLES -- 2.8%
4,300 Applied Industrial Technologies, Inc. 176,837
10,100 Arctic Cat, Inc. 109,838
8,400 Arvin Industries, Inc. 292,425
10,800 Breed Technologies, Inc. 229,500
6,470 Myers Industries, Inc. 102,711
6,500 Smith (A.O.) Corporation 229,125
5,800 Standard Products Company 153,700
------------
1,294,136
------------
NON-FERROUS METALS-- 1.1%
5,700 Brush Wellman, Inc. 142,500
4,900 Castle (A.M.) & Company 126,175
5,300 Commercial Metals 162,975
18,100 UNR Industries, Inc. 83,713
------------
515,363
------------
PAPER & FOREST PRODUCTS-- 3.0%
8,000 Chesapeake Corporation 275,000
14,500 Glatefelter (P.H.) Company 299,969
17,700 Longview Fibre Company 370,594
9,900 Potlatch Corporation 462,206
------------
1,407,769
------------
See Notes to Financial Statements.
38
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
PRODUCER GOODS -- 4.1%
10,500 Albany International Corporation Class A $ 284,156
6,900 Barnes Group, Inc. 190,181
2,700 Butler Manufacturing Company 97,200
5,600 CLARCOR, Inc. 146,650
3,400 Helix Technology Corporation 203,150
6,050 Hughes Supply, Inc. 155,031
6,400 Juno Lighting, Inc. 106,400
5,850 Manitowoc, Inc. 211,332
2,800 NACCO Industries, Inc. 241,500
4,800 Quanex Corporation 174,300
4,300 Zurn Industries, Inc. 127,656
------------
1,937,556
------------
RESTAURANTS -- 0.7%
8,100 Luby's Cafeterias, Inc. 159,469
7,100 Sbarro, Inc. 189,925
------------
349,394
------------
RETAIL -- 5.2%
29,450 Family Dollar Stores, Inc. 625,812
7,500 Hancock Fabrics, Inc. 93,750
13,400 Longs Drug Stores, Inc. 339,188
16,000 Ruddick Corporation 240,000
11,000 Shopko Stores, Inc. 302,500
6,100 Stanhome, Inc. 198,250
16,800 Stride Rite Corporation 199,500
11,300 Talbots 298,744
4,400 Wynns International, Inc. 127,050
------------
2,424,794
------------
STEEL -- 2.9%
10,300 Birmingham Steel Corporation 193,125
6,600 Carpenter Technology Corporation 295,762
9,800 Chaparral Steel Company 148,225
4,000 Cleveland-Cliffs, Inc. 166,750
8,700 Intermet Corporation 150,619
13,400 J & L Speciality Steel, Inc. 167,500
8,800 Oregon Steel Mills, Inc. 237,050
------------
1,359,031
------------
See Notes to Financial Statements.
39
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
TOBACCO -- 0.9
12,000 Universal Corporation $ 436,500
------------
TRANSPORTATION -- 2.6%
7,300 Airborne Freight Corporation. 359,525
8,400 APL Limited 268,800
10,200 ASA Holdings, Inc. 303,450
8,800 USFreightways Corporation 264,000
------------
1,195,775
------------
TRAVEL & RECREATION -- 0.4%
5,718 K2, Inc. 177,258
------------
UTILITIES -- 18.7%
4,700 Arch Coal Corporation 130,131
4,700 Bay State Gas Company 137,181
5,000 Black Hills Power & Light Corporation 139,375
7,900 Cabot Oil & Gas Corporation 183,181
2,200 California Water Services Company 102,025
6,100 Central Hudson Gas & Electric Corporation 203,587
7,800 Central Louisiana Electric Company, Inc. 204,750
11,200 Central Maine Power Company 142,100
4,700 CILCORP, Inc. 188,881
11,700 CIPSCO, Inc. 432,168
7,100 Eastern Utilities Association 135,787
5,700 Empire District Electric Company 97,612
4,600 Energen Corporation 165,887
12,900 Idaho Power Company 407,962
10,300 IES Industries, Inc. 315,437
3,400 Interstate Power Company 99,450
6,100 Laclede Gas Company 149,068
5,600 Madison Gas & Electric Company 113,400
9,750 MDU Resources Group 233,390
11,300 Minnesota Power & Light Company 388,437
17,000 Nevada Power Company 359,125
6,200 New Jersey Resources 198,787
7,800 Northwest Natural Gas Company 195,000
6,200 Northwestern Public Service 119,738
9,500 ONEOK, Inc. 307,563
4,700 Orange & Rockland Utilities 159,506
6,700 Philadelphia Suburban Company 155,356
10,200 Piedmont Natural Gas, Inc. 269,663
See Notes to Financial Statements.
40
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS -- (CONTINUED) AUGUST 31, 1997
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- (CONTINUED)
6,800 Public Service Company of North Carolina . $ 144,925
12,100 Quaker State Corporation 187,550
13,300 Rochester Gas & Electric Company 313,381
8,100 SIGCORP, Inc. 204,525
10,500 Snyder Oil Corporation 206,719
9,300 Southwest Gas Corporation 184,256
8,600 Southwestern Energy Company 109,650
4,500 TNP Entreprise, Inc. 105,469
4,900 United Illuminating Company 171,194
12,100 United Water Resources, Inc. 216,288
19,200 Washington Water Power 374,400
6,300 WICOR, Inc. 249,244
10,500 WPL Holdings, Inc. 290,719
8,200 WPS Resources Corporation 229,088
------------
8,721,955
------------
TOTAL COMMON STOCKS (Cost $38,687,725) 46,554,379
============
TOTAL INVESTMENTS (COST $38,687,725**) 99.7% 46,554,379
OTHER ASSETS AND LIABILITIES (NET) 0.3% 156,097
----- -----------
NET ASSETS 100.0% $46,710,476
===== ===========
_________________
** Aggregate cost for Federal tax purposes is $38,882,661.
See Notes to Financial Statements.
41
[INSERT FINANCIALS]
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 1997
<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 $ 114,554,870 $ 62,108,131 $ 19,020,683 $ 46,554,379
Cash 921,066 1,503,244 76,730 114,420
Dividends receivable 60,926 216,683 1,675 129,187
Receivable for Portfolio shares sold 374,351 836,276 2,100 7,000
Prepaid expenses and other assets 25,699 7,040 2,681 6,567
------------- ------------ ------------ ------------
Total Assets 115,936,912 64,671,374 19,103,869 46,811,553
------------- ------------ ------------ ------------
LIABILITIES:
Payable for investment securities purchased 412,248 1,246,762 -- --
Payable for Portfolio shares redeemed 12,638 24,995 -- 32,273
Investment advisory fee payable (Note 2) 10,139 5,143 1,604 4,194
Administration fee payable (Note 2) 15,188 7,694 2,382 6,271
Shareholder servicing fees payable (Note 3) 7,994 652 220 762
Transfer agent fees payable (Note 2) 15,129 8,925 4,900 7,786
Custodian fees payable (Note 2) 3,082 8,763 6,439 9,745
Accrued legal and audit fees 47,088 38,355 15,833 34,417
Accrued expenses and other payables 52,187 6,889 2,611 5,629
------------- ------------ ------------ ------------
Total Liabilities 575,693 1,348,178 33,989 101,077
------------- ------------ ------------ ------------
NET ASSETS $ 115,361,219 $ 63,323,196 $ 19,069,880 $ 46,710,476
============= ============ ============ ============
Investments, at cost (Note 1) $ 91,446,230 $ 51,738,577 $ 15,467,741 $ 38,687,725
============= ============ ============ ============
</TABLE>
See Notes to Financial Statements.
42
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 1997
<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 $ 115,989 $ 762,826 $ -- $ 705,999
Accumulated net realized gain on
investments sold 1,653,915 2,270,480 109,425 2,732,795
Net unrealized appreciation of investments 23,108,640 10,369,554 3,552,942 7,866,654
Par value 4,823 3,093 1,148 2,710
Paid-in capital 90,477,852 49,917,243 15,406,365 35,402,318
------------- ------------ ------------ ------------
$ 115,361,219 $ 63,323,196 $ 19,069,880 $ 46,710,476
============= ============ ============ ============
NET ASSETS:
Investment Class shares $ 73,479,964 $ 13,988,955 $ 14,470,510 $ 20,298,660
============= ============ ============ ============
Institutional Class shares $ 41,881,255 $ 49,334,241 $ 4,599,370 $ 26,411,816
============= ============ ============ ============
SHARES OUTSTANDING:
Investment Class shares 3,071,993 682,707 871,275 1,176,841
============= ============ ============ ============
Institutional Class shares 1,751,290 2,410,117 276,982 1,533,155
============= ============ ============ ============
INVESTMENT CLASS SHARES:
Net asset value, offering and redemption
price per share $ 23.92 $ 20.49 $ 16.61 $ 17.25
============= ============ ============ ============
INSTITUTIONAL CLASS SHARES:
Net asset value, offering and redemption
price per share $ 23.91 $ 20.47 $ 16.61 $ 17.23
============= ============ ============ ============
</TABLE>
See Notes to Financial Statements.
43
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1997
<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 $ 634,082 $ 1,407,526 $ 30,362 $ 1,292,264
------------- ------------ ------------ ------------
EXPENSES:
Investment advisory fee (Note 2) 156,239 102,886 46,788 93,963
Administration fee (Note 2) 120,719 88,732 55,070 83,379
Transfer agent fees (Note 2) 106,232 103,327 73,346 96,166
Custodian fees (Note 2) 78,096 54,027 29,244 51,593
Registration and filing fees 74,476 57,997 35,759 40,641
Legal and audit fees 55,893 45,013 9,199 33,032
Amortization of organization costs (Note 5) 3,452 3,602 3,350 2,479
Directors fees and expenses (Note 2) 19,162 14,516 5,449 12,819
Distribution fees (Note 3) 13,509 -- -- --
Other 48,286 15,907 13,441 18,169
------------- ------------ ------------ ------------
Subtotal 676,064 486,007 271,646 432,241
Fees waived by investment adviser (Note 2) (93,760) (61,731) (28,073) (56,378)
Expenses reimbursed by administrator
(Note 2) (24,498) (27,823) (12,169) (37,363)
Custody earnings credit (Note 2) (56,665) (23,196) (3,729) (16,137)
------------- ------------ ------------ ------------
Total net expenses 501,141 373,257 227,675 322,363
------------- ------------ ------------ ------------
NET INVESTMENT
INCOME/(LOSS) 132,941 1,034,269 (197,313) 969,901
------------- ------------ ------------ ------------
NET REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS
(Notes 1 and 4):
Net realized gain on investments during
the year 2,999,006 3,378,742 933,077 4,279,058
Net change in unrealized appreciation
of investments during the year 17,528,339 7,579,626 1,789,172 6,540,323
------------- ------------ ------------ ------------
NET REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS 20,527,345 10,958,368 2,722,249 10,819,381
------------- ------------ ------------ ------------
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS $ 20,660,286 $ 11,992,637 $ 2,524,936 $ 11,789,282
============= ============ ============ ============
</TABLE>
See Notes to Financial Statements.
44
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED AUGUST 31, 1997
<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) $ 132,941 $ 1,034,269 $ (197,313) $ 969,901
Net realized gain on investments sold
during the year 2,999,006 3,378,742 933,077 4,279,058
Net change in unrealized appreciation
of investments during the year 17,528,339 7,579,626 1,789,172 6,540,323
------------- ------------ ------------ ------------
Net increase in net assets resulting from
operations 20,660,286 11,992,637 2,524,936 11,789,282
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income:
Investment Class shares (22,088) (450,971) -- (662,863)
Institutional Class shares (29,526) (603,729) -- (355,380)
Net realized gain on investments:
Investment Class shares (2,335,170) (1,745,588) (3,506,355) (2,277,643)
Institutional Class shares (1,724,527) (2,263,715) (802,363) (1,191,034)
------------- ------------ ------------ ------------
Total distributions to shareholders (4,111,311) (5,064,003) (4,308,718) (4,486,920)
CAPITAL STOCK TRANSACTIONS:
Investment Class Shares:
Shares sold 56,172,170 6,591,762 3,370,546 8,355,863
Shares issued as reinvestment
of dividends 2,087,327 2,047,357 3,289,679 2,785,299
Shares redeemed (15,134,615) (15,615,868) (8,655,680) (20,524,026)
------------- ------------ ------------ ------------
Total Investment Class shares 43,124,882 (6,976,749) (1,995,455) (9,382,864)
------------- ------------ ------------ ------------
Institutional Class shares:
Shares sold 27,361,859 25,463,128 421,000 20,495,849
Shares issued as reinvestment
of dividends 1,754,053 2,867,445 802,362 1,546,414
Shares redeemed (225,881) (343,952) (964) (7,914,939)
------------- ------------ ------------ ------------
Total Institutional Class shares 28,890,031 27,986,621 1,222,398 14,127,324
------------- ------------ ------------ ------------
Net increase/(decrease) in net assets
from Capital Stock transactions 72,014,913 21,009,872 (773,057) 4,744,460
------------- ------------ ------------ ------------
Net increase/(decrease) in net assets 88,563,888 27,938,506 (2,556,839) 12,046,822
------------- ------------ ------------ ------------
NET ASSETS:
Beginning of year 26,797,331 35,384,690 21,626,719 34,663,654
------------- ------------ ------------ ------------
End of year $ 115,361,219 $ 63,323,196 $ 19,069,880 $ 46,710,476
============= ============ ============ ============
Undistributed net investment income $ 115,989 $ 762,826 $ -- $ 705,999
============= ============ ============ ============
</TABLE>
See Notes to Financial Statements.
45
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
YEAR ENDED AUGUST 31, 1997
<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 2,654,409 369,344 207,868 534,802
Shares issued as reinvestment
of dividends 106,063 117,125 226,561 195,461
Shares redeemed (672,257) (812,923) (535,487) (1,270,157)
------------- ------------ ------------ ------------
Net increase/(decrease) in Investment
Class shares outstanding 2,088,215 (326,454) (101,058) (539,894)
============= ============ ============ ============
Institutional Class shares:
Shares sold 1,270,150 1,283,987 29,135 1,427,581
Shares issued as reinvestment
of dividends 89,174 164,042 55,221 108,597
Shares redeemed (9,124) (17,018) (69) (463,718)
------------- ------------ ------------ ------------
Net increase in Institutional Class
shares outstanding 1,350,200 1,431,011 84,287 1,072,460
============= ============ ============ ============
</TABLE>
See Notes to Financial Statements.
46
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
YEAR ENDED AUGUST 31, 1997
<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.
47
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
YEAR ENDED AUGUST 31, 1997
<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.
48
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
---------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/97 8/31/96 8/31/95 8/31/94 8/31/93(1)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 19.35 $ 16.34 $ 13.31 $ 12.74 $ 12.50
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.04*** 0.07 0.10 0.15 0.21
Net realized and unrealized gain on
investments 7.29 3.45 3.03 0.65 0.10
--------- --------- --------- --------- ---------
Total from investment operations 7.33 3.52 3.13 0.80 0.31
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.12) (0.10) (0.23) (0.07)
Distributions from capital gains (2.73) (0.39) -- -- --
--------- --------- --------- --------- ---------
Total distributions (2.76) (0.51) (0.10) (0.23) (0.07)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 23.92 $ 19.35 $ 16.34 $ 13.31 $ 12.74
========= ========= ========= ========= =========
Total return (a) 40.91% 21.90% 23.67% 6.34% 2.46%**
========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 73,480 $ 19,035 $ 21,348 $ 8,424 $ 8,061
Operating expenses including
reimbursement/waiver/custody
earnings credit 0.81% 0.93% 0.84% 0.68% --
Operating expenses excluding custody
earnings credit 0.91% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit 1.09% 0.96% 1.05% 1.39% 1.14%**
Net investment income including
reimbursement/waiver/custody
earnings credit 0.20% 0.39% 0.94% 1.18% 1.66%**
Portfolio turnover rate 43% 44% 30% 22% 12%**
Average commission rate paid (b) $ 0.0247 $ 0.0312 -- -- --
- --------------------
</TABLE>
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Large Company Growth Portfolio Investment Class Shares commenced
operations on September 30, 1992.
(a) Total return represents aggregate total return for the period
indicated.
(b) 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.
LARGE COMPANY GROWTH PORTFOLIO -- (CONTINUED)
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS SHARES
--------------------------
YEAR PERIOD
ENDED ENDED
8/31/97 8/31/96(1)
--------- ---------
<S> <C> <C>
Net asset value, beginning of year $ 19.35 $ 18.27
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05*** 0.01
Net realized and unrealized gain on investments 7.29 1.07
--------- ---------
Total from investment operations 7.34 1.08
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) --
Distributions from capital gains (2.73) --
--------- ---------
Total distributions (2.78) --
--------- ---------
Net asset value, end of year $ 23.91 $ 19.35
========= =========
Total return (a) 40.99% 5.91%**
========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 41,881 $ 7,763
Operating expenses including reimbursement/waiver/custody earnings credit 0.78% 0.91%*
Operating expenses excluding custody earnings credit 0.87% --
Operating expenses excluding reimbursement/waiver/custody earnings credit 1.06% 0.94%*
Net investment income including reimbursement/waiver/custody earnings credit 0.23% 0.41%*
Portfolio turnover rate 43% 44%**
Average commission rate paid (b) $ 0.0247 $ 0.0312
</TABLE>
- -------------------------
* Annualized.
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Large Company Growth Portfolio Institutional Class Shares
commenced operations on July 15, 1996.
(a) Total return represents aggregate total return for the period
indicated.
(b) 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.
LARGE COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
---------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/97 8/31/96 8/31/95 8/31/94 8/31/93(1)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 17.80 $ 16.02 $ 13.99 $ 15.18 $ 12.50
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.47*** 0.85 0.34 0.36 0.54
Net realized and unrealized gain/(loss)
on investments 5.13 1.91 2.19 (0.90) 2.30
--------- --------- --------- --------- ---------
Total from investment operations 5.60 2.76 2.53 (0.54) 2.84
LESS DISTRIBUTIONS:
Dividends from net investment income (0.60) (0.47) (0.40) (0.36) (0.16)
Distributions from capital gains (2.31) (0.51) (0.10) (0.29) --
--------- --------- --------- --------- ---------
Total distributions (2.91) (0.98) (0.50) (0.65) (0.16)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 20.49 $ 17.80 $ 16.02 $ 13.99 $ 15.18
========= ========= ========= ========= =========
Total return (a) 34.27% 17.52% 18.97% (3.61)% 22.93%**
========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 13,989 $ 17,960 $ 22,926 $ 12,158 $ 8,116
Operating expenses including
reimbursement/waiver/custody
earnings credit 0.91% 0.89% 0.81% 0.58% --
Operating expenses excluding custody
earnings credit 0.96% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit 1.18% 0.92% 1.02% 1.18% 1.32%**
Net investment income including
reimbursement/waiver/custody
earnings credit 2.51% 3.12% 3.77% 4.02% 4.27%**
Portfolio turnover rate 65% 56% 58% 47% 22%**
Average commission rate paid (b) $ 0.0222 $ 0.0269 -- -- --
</TABLE>
- --------------------
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Large Company Value Portfolio Investment Class Shares commenced
operations on September 30, 1992.
(a) Total return represents aggregate total return for the year
indicated.
(b) 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.
LARGE COMPANY VALUE PORTFOLIO -- (CONTINUED)
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS SHARES
--------------------------
YEAR PERIOD
ENDED ENDED
8/31/97 8/31/96(1)
--------- ---------
<S> <C> <C>
Net asset value, beginning of year $ 17.80 $ 17.19
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.47*** 0.07
Net realized and unrealized gain on investments 5.13 0.54
--------- ---------
Total from investment operations 5.60 0.61
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.62) --
Distributions from capital gains (2.31) --
--------- ---------
Total distributions (2.93) --
--------- ---------
Net asset value, end of year $ 20.47 $ 17.80
========= =========
Total return (a) 34.26% 3.55%**
========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 49,334 $ 17,425
Operating expenses including reimbursement/waiver/custody earnings credit 0.91% 0.87%*
Operating expenses excluding custody earnings credit 0.96% --
Operating expenses excluding reimbursement/waiver/custody earnings credit 1.18% 0.90%*
Net investment income including reimbursement/waiver/custody earnings credit 2.51% 3.14%*
Portfolio turnover rate 65% 56%**
Average commission rate paid (b) $ 0.0222 $ 0.0269
</TABLE>
- -----------------------
* Annualized.
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Large Company Value Portfolio Institutional Class Shares
commenced operations on July 15, 1996.
(a) Total return represents aggregate total return for the period
indicated.
(b) Average commission rate paid per share of portfolio securities
purchased and sold by the Portfolio.
See Notes to Financial Statements.
52
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
---------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/97 8/31/96 8/31/95 8/31/94 8/31/93(1)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 18.56 $ 18.55 $ 15.39 $ 16.03 $ 12.50
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income/(loss) (0.17)*** (0.19) (0.07) (0.04) 0.08
Net realized and unrealized gain
on investments 2.38 3.06 3.54 0.90 3.48
--------- --------- --------- --------- ---------
Total from investment operations 2.21 2.87 3.47 0.86 3.56
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- -- (0.03)
Distributions in excess of net investment
income -- -- -- (0.07) --
Distributions from capital gains (4.16) (2.86) (0.31) (1.43) --
--------- --------- --------- --------- ---------
Total distributions (4.16) (2.86) (0.31) (1.50) (0.03)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 16.61 $ 18.56 $ 18.55 $ 15.39 $ 16.03
========= ========= ========= ========= =========
Total return (a) 15.16% 17.50% 23.04% 5.20% 28.50%**
========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 14,471 $ 18,049 $ 21,882 $ 11,188 $ 7,527
Operating expenses including
reimbursement/waiver/custody
earnings credit 1.22% 1.01% 0.95% 0.74% --
Operating expenses excluding custody
earnings credit 1.24% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit 1.45% 1.05% 1.16% 1.47% 1.40%**
Net investment income/(loss) including
reimbursement/waiver/custody
earnings credit (1.05)% (0.78)% (0.54)% (0.40)% 0.53%**
Portfolio turnover rate 105% 87% 111% 46% 55%**
Average commission rate paid (b) $ 0.0175 $ 0.0200 -- -- --
</TABLE>
- ------------------------------
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Small Company Growth Portfolio Investment Class Shares commenced
operations on October 1, 1992.
(a) Total return represents aggregate total return for the period
indicated.
(b) Average commission rate paid per share of portfolio securities
purchased and sold by the Portfolio.
See Notes to Financial Statements.
53
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO -- (CONTINUED)
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS SHARES
--------------------------
YEAR PERIOD
ENDED ENDED
8/31/97 8/31/96(1)
--------- ---------
<S> <C> <C>
Net asset value, beginning of year $ 18.56 $ 16.66
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment (loss) (0.17)*** (0.02)
Net realized and unrealized gain on investments 2.38 1.92
--------- ---------
Total from investment operations 2.21 1.90
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income -- --
Distributions from capital gains (4.16) --
--------- ---------
Total distributions (4.16) --
--------- ---------
Net asset value, end of year $ 16.61 $ 18.56
========= =========
Total return (a) 15.14% 11.40%**
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 4,599 $ 3,577
Operating expenses including reimbursement/waiver/custody earnings credit 1.22% 0.98%*
Operating expenses excluding custody earnings credit 1.24% --
Operating expenses excluding reimbursement/waiver/custody earnings credit 1.45% 1.02%*
Net investment (loss) including reimbursement/waiver/custody earnings credit (1.05)% (0.75)%*
Portfolio turnover rate 105% 87%**
Average commission rate paid (b) $ 0.0175 $ 0.0200
</TABLE>
- -----------------------------
* Annualized.
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Small Company Growth Portfolio Institutional Class Shares
commenced operations on July 15, 1996.
(a) Total return represents aggregate total return for the period
indicated.
(b) Average commission rate paid per share of portfolio securities
purchased and sold by the Portfolio.
See Notes to Financial Statements.
54
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
---------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/97 8/31/96 8/31/95 8/31/94 8/31/93(1)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 15.92 $ 15.41 $ 14.32 $ 14.81 $ 12.50
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.40*** 0.56 0.55 0.45 0.35
Net realized and unrealized gain/(loss)
on investments 4.27 0.95 1.06 (0.45) 2.10
--------- --------- --------- --------- ---------
Total from investment operations 4.67 1.51 1.61 0.00 2.45
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.75) (0.56) (0.45) (0.33) (0.14)
Distributions from capital gains (2.59) (0.44) (0.07) (0.16) --
--------- --------- --------- --------- ---------
Total distributions (3.34) (1.00) (0.52) (0.49) (0.14)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 17.25 $ 15.92 $ 15.41 $ 14.32 $ 14.81
========= ========= ========= ========= =========
Total return (a) 33.73% 10.01% 11.84% (0.01)% 19.72%**
========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 20,299 $ 27,329 $ 25,978 $ 23,438 $ 15,155
Operating expenses including
reimbursement/waiver/custody
earnings credit 0.86% 0.88% 0.69% 0.50% --
Operating expenses excluding custody
earnings credit 0.90% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit 1.15% 0.92% 0.91% 1.06% 1.32%**
Net investment income including
reimbursement/waiver/custody
earnings credit 2.58% 3.13% 4.12% 3.64% 3.65%**
Portfolio turnover rate 105% 81% 86% 49% 27%**
Average commission rate paid (b) $ 0.0223 $ 0.0238 -- -- --
</TABLE>
- -----------------------------
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Small Company Value Portfolio Investment Class Shares commenced
operations on September 30, 1992.
(a) Total return represents aggregate total return for the period
indicated.
(b) Average commission rate paid per share of portfolio securities
purchased and sold by the Portfolio.
See Notes to Financial Statements.
55
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
FINANCIAL HIGHLIGHTS
For a Portfolio Share Outstanding Throughout Each Period.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS SHARES
--------------------------
YEAR PERIOD
ENDED ENDED
8/31/97 8/31/96(1)
--------- ---------
<S> <C> <C>
Net asset value, beginning of year $ 15.92 $ 15.45
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.40*** 0.06
Net realized and unrealized gain on investments 4.27 0.41
--------- ---------
Total from investment operations 4.67 0.47
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.77) --
Distributions from capital gains (2.59) --
--------- ---------
Total distributions (3.36) --
--------- ---------
Net asset value, end of year $ 17.23 $ 15.92
========= =========
Total return (a) 33.74% 3.04%**
========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) $ 26,412 $ 7,335
Operating expenses including reimbursement/waiver/custody earnings credit 0.86% 0.85%*
Operating expenses excluding custody earnings credit 0.90% --
Operating expenses excluding reimbursement/waiver/custody earnings credit 1.15% 0.89%*
Net investment income including reimbursement/waiver/custody earnings credit 2.58% 3.16%*
Portfolio turnover rate 105% 81%**
Average commission rate paid (b) $ 0.0223 $ 0.0238
</TABLE>
- ----------------------------
* Annualized.
** Non-annualized.
*** The selected per share data was calculated using the weighted
average shares outstanding method for the year.
(1) Small Company Value Portfolio Institutional Class Shares
commenced operations on July 15, 1996.
(a) Total return represents aggregate total return for the period
indicated.
(b) Average commission rate paid per share of portfolio securities
purchased and sold by the Portfolio.
See Notes to Financial Statements.
56
WILSHIRE TARGET FUNDS, INC.
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 offers Investment and Institutional Class shares (the
"shares"), each of which has equal rights as to Class and voting privileges. The
Investment Class has exclusive voting rights with respect to its service and
distribution plan. 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 pursuant to procedures adopted 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
recognized 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
57
WILSHIRE TARGET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
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.
Federal income taxes: The Fund intends to qualify each year as a regulated
investment company by complying with the requirements of the Internal Revenue
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.
FUND ANNUAL RATE (%)
---- ---------------
Large Company Growth Portfolio .80
Large Company Value Portfolio .77
Small Company Growth Portfolio .91
Small Company Value Portfolio .66
58
WILSHIRE TARGET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
In addition, Wilshire voluntarily has undertaken to waive such additional
portion of its fee otherwise payable under the Advisory Agreement as is in
excess of the rate payable under its prior agreement with the Fund (.10% of 1%
of each Portfolio's average daily net assets). The voluntary waiver may be
terminated at any time by Wilshire by notice to the Directors of the Fund.
First Data Investor Services Group, Inc. ("Investor Services Group"), 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, the Fund has
agreed to pay Investor Services Group 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 Investor Services Group an annual fee of $25,000 per each
Portfolio and $2,000 for each additional class.
For the year ended August 31, 1997, Wilshire and Investor Services Group
voluntarily waived fees and reimbursed expenses as follows:
FEES WAIVED EXPENSES REIMBURSED
FUND BY WILSHIRE BY INVESTOR SERVICES GROUP
---- ----------- --------------------------
Large Company Growth Portfolio $ 93,760 $ 24,498
Large Company Value Portfolio 61,731 27,823
Small Company Growth Portfolio 28,073 12,169
Small Company Value Portfolio 56,378 37,363
The Northern Trust Company serves as the Fund's custodian. Each Portfolio
maintains a cash balance with its custodian and receives a reduction of its
custody fees and expenses for the amount of interest earned on such uninvested
cash balances. The amounts are presented as Custody earnings credits in the
Statements of Operations.
No officer, director or employee of Wilshire, Investor Services Group, 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.
59
WILSHIRE TARGET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
3. SERVICE AND DISTRIBUTION PLAN.
The Directors and shareholders of the Fund have adopted a service and
distribution 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 First Data
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 ("service fees") and for
certain distribution expenses for the purpose of financing any activity intended
to result in the sale of Investment Class shares. Prior to June 3, 1997, the
Plan permitted the reimbursement of service fees only.
4. SECURITIES TRANSACTIONS.
For the year ended August 31, 1997 aggregate cost of purchases and
proceeds from sales of securities, other than short-term investments, were as
follows:
FUND PURCHASES SALES
---- --------- -----
Large Company Growth Portfolio $ 90,413,325 $ 23,282,850
Large Company Value Portfolio 42,629,700 26,881,186
Small Company Growth Portfolio 18,038,684 23,252,430
Small Company Value Portfolio 40,971,866 39,475,234
At August 31, 1997, 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:
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
---- ------------ ------------
Large Company Growth Portfolio $ 23,521,211 $ 665,863
Large Company Value Portfolio 10,457,811 354,327
Small Company Growth Portfolio 4,233,556 828,134
Small Company Value Portfolio 8,134,434 462,716
60
WILSHIRE TARGET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
5. ORGANIZATION COSTS
The Portfolios bear all costs in connection with their organization,
including registration and notification fees and expenses with respect to the
sale of their shares 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. SUBSEQUENT EVENT
The Fund recently established two new series: Intermediate Corporate
Bond Portfolio and Long-Term Corporate Bond Portfolio (the "New Portfolios").
The New Portfolios offer Investment Class and Institutional Class Shares. The
New Portfolios expect to commence operations on or about November 1, 1997.
61
WILSHIRE TARGET FUNDS, INC.
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 of
Large Company Growth Portfolio, Large Company Value Portfolio, Small Company
Growth Portfolio and Small Company Value Portfolio (four series of Wilshire
Target Funds, Inc.) including the statements of investments, as of August 31,
1997 and the related statements of operations, the statements of changes in net
assets, and the financial highlights for each of the periods indicated
therein.These financial statements and financial highlights are the
responsibility of Wilshire Target Funds' 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, 1997 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our 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 the
aforementioned series of Wilshire Target Funds, Inc. as of August 31, 1997, the
results of their operations, the changes in their net assets, and their
financial highlights for the periods indicated-therein, in conformity with
generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
October 3, 1997
62
WILSHIRE TARGET FUNDS, INC.
TAX INFORMATION
(UNAUDITED)
- --------------------------------------------------------------------------------
Long-Term Capital Gains
The amounts of long-term capital gains paid for the fiscal year ended
August 31, 1997 were as follows:
Fund Total
---- -----
Large Company Growth Portfolio ............. $ 3,652,224
Large Company Value Portfolio .............. 2,749,118
Small Company Growth Portfolio ............. 2,438,979
Small Company Value Portfolio .............. 2,603,628
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:
Fund Percentage
---- ----------
Large Company Growth Portfolio ............. 85.12%
Large Company Value Portfolio .............. 53.82%
Small Company Growth Portfolio ............. 100.00%
Small Company Value Portfolio .............. 54.92%
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