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WILSHIRE
TARGET FUNDS, INC.
ANNUAL REPORT
LARGE COMPANY GROWTH PORTFOLIO
LARGE COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
AUGUST 31, 1998
----------------
www.wilfunds.com
<PAGE>
WILSHIRE TARGET FUNDS, INC.
Shareholder Letter ....................................... 1
Large Company Growth Portfolio:
Fund Commentary ...................................... 4
Large Company Value Portfolio:
Fund Commentary ...................................... 7
Small Company Growth Portfolio:
Fund Commentary ...................................... 10
Small Company Value Portfolio:
Fund Commentary ...................................... 13
Statements of Investments:
Large Company Growth Portfolio ....................... 16
Large Company Value Portfolio ........................ 23
Small Company Growth Portfolio ....................... 30
Small Company Value Portfolio ........................ 38
Statements of Assets and Liabilities ..................... 46
Statements of Operations ................................. 48
Statements of Changes in Net Assets ...................... 49
Financial Highlights:
Large Company Growth Portfolio ....................... 53
Large Company Value Portfolio ........................ 55
Small Company Growth Portfolio ....................... 57
Small Company Value Portfolio ........................ 59
Notes to Financial Statements ............................ 61
--------------------------------
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.
<PAGE>
DEAR SHAREHOLDER,
Attached is our report to the shareholders of Wilshire Target Funds, Inc. (the
"Fund") for the fiscal year ended August 31, 1998. This report covers the twelve
month period ended August 31, 1998 for both classes of shares of the Fund's
Portfolios (Investment Class and Institutional Class).
The last several weeks leading up to the close of the Fund's fiscal year were a
trying period for equity market participants. In fact, on the closing day of the
fiscal year, the closely watched Dow Jones Industrial Average dropped over 500
points, leading some investors to question the wisdom of their equity positions.
Those of us involved in the daily management of the Fund's Portfolios are firm
believers that market timing is easy -- in hindsight. An investor who in 1980
invested $1,000 in a portfolio which matched the return of the Wilshire 5000
Index would have over $15,000 today. However, if that same investor missed out
on just the 5 best days in that 18-year period, the current portfolio value
would be just over $12,000. Missing the 10 best days would have resulted in a
portfolio worth only $10,000; missing the 50 best days, less than $4,000.
We believe that for individuals as well as for large corporate pension plans,
the decision as to what percentage of investment assets should be allocated to
equities is a strategic decision, based on a long-term view of the capital
markets as well as the individual's/corporation's risk tolerance. By providing
Portfolios which are always fully invested, we allow our shareholders to
efficiently implement these decisions.
The four distinct segments of the equity market are represented by the Fund's
Large Company Growth, Large Company Value, Small Company Growth and Small
Company Value Portfolios. Investors looking for focused exposures to each equity
style category will find that the Portfolios are managed very diligently and
that they adhere to the specific characteristics that define each particular
style.
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.
Style categories have emerged over time reflecting the very different investment
criteria used by money managers. The Portfolios are oriented to the fundamental
profiles of our styles. The Growth Portfolios focus on companies whose financial
characteristics include above average earnings growth, sales growth and return
on equity. Conversely, the Value Portfolios seek companies with above average
earnings yield, dividend yield and price-to-book ratios. We construct the
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 lose their attractiveness, from a value perspective, after a strong relative
price advance. 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 twelve month period ended August 31, 1998, we saw a continuation of
the trend where large company stocks outperformed small company stocks. The
Wilshire 5000 Index, comprised of all U.S. equity securities, rose 2.67% for the
twelve months ended August 31, 1998. Large companies, as measured by the
Standard & Poor's 500 Composite Stock Price Index, rose 8.11%, while small
companies, as measured by the Wilshire Next 1750 Index, declined 16.95% during
this time period.
U.S. EQUITY LARGE SMALL
SECURITIES COMPANIES COMPANIES
2.67% 8.11% -16.95%
WILSHIRE S&P WILSHIRE
5000 500 NEXT 1750
INDEX INDEX INDEX
<PAGE>
SUMMARY
Much has been written in recent weeks about the length of this bull market and
the certainty of a correction. A correction is indeed certain; a bear market is
also certain. It's the timing of these events which is problematic and trying to
anticipate these turns can easily put the overly cautious investor on the
sidelines as the bull market continues or resumes. There have been serious bear
markets in the past and there will undoubtedly be more in the future. Yet
investors who have focused on investing for the long-term have, over the
long-term, been rewarded. This is certainly not to say that all investors should
be fully exposed to equities. Rather each investor should determine the asset
mix which pursues his/her investment goals with which he/she is comfortable,
review his/her investment goals regularly and invest for the long run.
Sincerely,
/s/ Thomas D. Stevens
Thomas D. Stevens
President and Chairman of the Board
<PAGE>
LARGE COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
For the 12 months ended August 31, 1998, the Portfolio's Investment Class
Shares returned 11.61% and Institutional Class Shares returned 11.78%. The Large
Company Growth Portfolio continued to perform well relative to the other style
categories. Positive performance is largely attributable to strength in the
consumer non-durables sector which had an average weighting of approximately 43%
of the portfolio over the period. Strong performers included Merck, Coca-Cola,
Walmart, and Johnson & Johnson. Other strong performers that were weighted
heavily in the portfolio include AIG Insurance (up 55%) and General Electric
Company (up 30%). Returns for stocks in the technology sector, which comprised
26% of the portfolio over the period, ended up mixed. Dell, Cisco, and Microsoft
performed well, returning 144%, 63%, and 45% respectively. However, most tech
stocks were in negative territory, adversely impacting the Portfolio's
performance; Intel was down 23%, Hewlett Packard down 30%, and Compaq down 13%.
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, a common large company
benchmark. 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 year's
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.
PORTFOLIO INFORMATION(1)
(As of August 31, 1998)
AVERAGE 5-YEAR SALES GROWTH ................................. 18.2%
AVERAGE 5-YEAR EARNINGS GROWTH .............................. 15.8%
AVERAGE 5-YEAR RETURN ON EQUITY ............................. 27.0%
AVERAGE MARKET CAPITALIZATION ............................... $91.7 BILLION
(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, 1998 for those
securities in the Portfolio's holdings as of August 31, 1998 whose issuers
have been in existence for at least 5 years.
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... 11.61%
FIVE YEARS ENDED 8/31/98 ............................. 20.31%
INCEPTION (9/30/92) THROUGH 8/31/98 .................. 17.39%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... 11.78%
INCEPTION (7/15/96) THROUGH 8/31/98 .................. 27.23%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the year ended August
31, 1998, fees and expenses totaling 0.06% per share were waived or reimbursed.
Without such waivers and reimbursements, total returns would have been lower.
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1998)
ENERGY 0.7%
CONSUMER DURABLES 0.8%
CONSUMER NON-DURABLES 46.7%
TRANSPORTATION 0.8%
MATERIALS & SERVICES 4.0%
FINANCE 6.7%
UTILITIES 7.2%
CAPITAL GOODS 8.7%
TECHNOLOGY 24.4%
*BASED ON PERCENT OF PORTFOLIO'S TOTAL MARKET VALUE
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF LARGE COMPANY GROWTH PORTFOLIO AND THE WILSHIRE 5000 INDEX
Large Company
Growth Portfolio
Investment Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- ----------
9/30/92 $10,000 $10,000
11/30/92 10,640 10,541
2/28/93 10,423 10,905
5/31/93 10,318 11,217
8/31/93 10,246 11,702
11/30/93 10,511 11,727
2/28/94 10,682 12,038
5/31/94 10,371 11,717
8/31/94 10,895 12,261
11/30/94 10,715 11,772
2/28/95 11,536 12,674
5/31/95 12,583 13,782
8/31/95 13,474 14,948
11/30/96 14,834 16,018
2/29/96 15,617 17,009
5/31/96 16,746 18,097
8/31/96 16,424 17,522
11/30/97 19,131 19,954
2/28/97 20,018 20,777
5/31/97 21,827 22,192
8/31/97 23,143 24,059
11/30/97 24,478 25,437
2/28/98 27,602 27,945
5/31/98 28,037 28,901
8/31/98 25,830 24,702
Large Company
Growth Portfolio
Institutional Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- ----------
7/15/96 $10,000 $10,000
8/31/96 10,591 9,763
11/30/96 12,343 11,119
2/28/97 12,916 11,577
5/31/97 14,090 12,366
8/31/97 14,939 13,405
11/30/97 15,813 14,173
2/28/98 17,836 15,571
5/31/98 18,118 16,103
8/31/98 16,698 13,763
Past performance is not predictive of future performance. 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. The Wilshire
5000 Index is an unmanaged index which measures the performance of all U.S.
headquartered equity securities with readily available price data. An individual
cannot invest directly in any index.
LARGE COMPANY VALUE PORTFOLIO
FUND COMMENTARY
For the 12 months ended August 31, 1998, the Portfolio's Investment Class
Shares returned 1.34% and Institutional Class Shares returned 1.47%. Over this
period, traditional value sectors like utilities and consumer durables, which
comprised 26.9% of the total portfolio, performed very well relative to the
market. Utilities which saw positive gains almost across the board were
especially bolstered by companies like US West, Duke Energy, and Bell Atlantic
which saw gains of 51%, 34%, and 26%, respectively. For the consumer durables
sector, while two of the Big Three auto makers, Ford and Chrysler, returned 61%
and 34%, respectively, while General Motors lagged significantly at 1.2%. The
finance sector, which had an average weighting of approximately 37% of the
portfolio over the period, dragged down the Portfolio's performance with some of
the Portfolio's larger holdings in this sector declining in value in what was a
generally strong period; Banc One was down nearly 20%, Allstate down 5.6%, and
NationsBank down 1.6% over the twelve month period.
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 the adviser expects to provide stable current income in the form of a
relatively high 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 13 and
price to book ratio was around 3 for the Portfolio versus 22 and 6,
respectively, for the S&P 500 Index.
PORTFOLIO INFORMATION(1)
(As of August 31, 1998)
DIVIDEND YIELD(2) ........................................ 2.9%
AVERAGE PRICE/BOOK RATIO ................................. 2.7
AVERAGE PRICE/EARNINGS RATIO ............................. 12.7
AVERAGE MARKET CAPITALIZATION ............................ $31.2 BILLION
(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.
<PAGE>
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... 1.34%
FIVE YEARS ENDED 8/31/98 ............................. 12.90%
INCEPTION (9/30/92) THROUGH 8/31/98 .................. 14.72%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... 1.47%
INCEPTION (7/15/96) THROUGH 8/31/98 .................. 17.55%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the year ended August
31, 1998, fees and expenses totaling 0.08% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1998)
TRANSPORTATION 2.4%
CAPITAL GOODS 2.7%
FINANCE 34.3%
MATERIALS & SERVICES 5.0%
CONSUMER NON-DURABLES 5.2%
CONSUMER DURABLES 9.4%
TECHNOLOGY 11.4%
ENERGY 12.1%
UTILITIES 17.5%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL MARKET VALUE.
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF LARGE COMPANY VALUE PORTFOLIO AND THE WILSHIRE 5000 INDEX
Large Company
Value Portfolio
Investment Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- ----------
9/30/92 $10,000 $10,000
11/30/92 10,176 10,541
2/28/93 11,224 10,905
5/31/93 11,329 11,217
8/31/93 12,293 11,702
11/30/93 11,702 11,727
2/28/94 11,672 12,038
5/31/94 11,630 11,717
8/31/94 11,850 12,261
11/30/94 11,325 11,772
2/28/95 12,232 12,674
5/31/95 13,376 13,782
8/31/95 14,098 14,948
11/30/96 15,392 16,018
2/29/96 16,447 17,009
5/31/96 16,764 18,097
8/31/96 16,568 17,522
11/30/97 19,165 19,954
2/28/97 19,835 20,777
5/31/97 20,454 22,192
8/31/97 22,246 24,059
11/30/97 23,679 25,437
2/28/98 25,455 27,945
5/31/98 26,600 28,901
8/31/98 22,545 24,702
Large Company
Value Portfolio
Institutional Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- ----------
7/15/96 $10,000 $10,000
8/31/96 10,355 9,763
11/30/96 11,984 11,119
2/28/97 12,409 11,577
5/31/97 12,782 12,366
8/31/97 13,903 13,405
11/30/97 14,806 14,173
2/28/98 15,921 15,571
5/31/98 16,638 16,103
8/31/98 14,108 13,763
Past performance is not predictive of future performance. 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. The Wilshire
5000 Index is an unmanaged index which measures the performance of all U.S.
headquartered equity securities with readily available price data. An individual
cannot invest directly in any index.
SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
For the 12 months ended August 31, 1998, the Portfolio's Investment Class
Shares returned -26.02% and Institutional Class Shares returned -25.95%. Small
growth stocks continued to be out of favor this period; the Wilshire Next 1750,
a broad index of small company growth stocks, was down almost 17% in the same
period. Although large cap growth stocks in the producer goods and the drugs and
medicine industries did very well during this period, these holdings were a
hindrance on the performance of the Small Growth Portfolio. Despite strong
showings within these industries from stocks such as Sofamor/Danek Group and JLG
Industries, up 81% and 26%, respectively, these were more the exception rather
than the rule. The largest sector weighting in the Portfolio over the period was
technology. Small cap growth tech stocks did not fair well this period, nor did
consumer non-durables, another traditional growth sector which turned in a poor
performance for the period. Bright spots among the Portfolio's substantial
holdings for the period included Symbol Technologies and Comair Corporation,
which earned returns of 53% and 73%, respectively.
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 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.
PORTFOLIO INFORMATION(1)
(As of August 31, 1998)
AVERAGE 5-YEAR SALES GROWTH ............................... 23.8%
AVERAGE 5-YEAR EARNINGS GROWTH ............................ 15.5%
AVERAGE 5-YEAR RETURN ON EQUITY ........................... 15.8%
AVERAGE MARKET CAPITALIZATION ............................. $0.76 BILLION
(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, 1998 for those
securities in the Portfolio's holdings as of August 31, 1998 whose issuers
have been in existence for at least 5 years.
SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... (26.02)%
FIVE YEARS ENDED 8/31/98 ............................. 5.32%
INCEPTION (10/1/92) THROUGH 8/31/98 .................. 9.00%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... (25.95)%
INCEPTION (7/15/96) THROUGH 8/31/98 .................. (2.39)%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the year ended August
31, 1998, fees and expenses totaling 0.17% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1998)
ENERGY 0.5%
TRANSPORTATION 5.0%
CONSUMER
CONSUMER DURABLES 6.5%
NON-DURABLES 24.7%
CAPITAL GOODS 9.1%
FINANCE 12.6%
MATERIALS AND
SERVICES 21.7%
TECHNOLOGY 19.9%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL MARKET VALUE.
SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF SMALL COMPANY GROWTH PORTFOLIO AND THE WILSHIRE 5000 INDEX
Small Company
Growth Portfolio
Investment Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- -----------
9/30/92 $10,000 $10,000
11/30/92 11,432 10,541
2/28/93 11,479 10,905
5/31/93 12,137 11,217
8/31/93 12,850 11,702
11/30/93 13,098 11,727
2/28/94 14,274 12,038
5/31/94 12,895 11,717
8/31/94 13,519 12,261
11/30/94 13,176 11,772
2/28/95 14,122 12,674
5/31/95 14,822 13,782
8/31/95 16,633 14,948
11/30/96 17,135 16,018
2/29/96 18,175 17,009
5/31/96 20,649 18,097
8/31/96 19,544 17,522
11/30/97 19,881 19,954
2/28/97 18,766 20,777
5/31/97 20,324 22,192
8/31/97 22,506 24,059
11/30/97 22,194 25,437
2/28/98 24,326 27,945
5/31/98 23,082 28,901
8/31/98 16,651 24,702
Small Company
Growth Portfolio
Institutional Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- -----------
7/15/96 $10,000 $10,000
8/31/96 11,140 9,763
11/30/96 11,339 11,119
2/28/97 10,703 11,577
5/31/97 11,584 12,366
8/31/97 12,827 13,405
11/30/97 12,650 14,173
2/28/98 13,864 15,571
5/31/98 13,155 16,103
8/31/98 9,498 13,763
Past performance is not predictive of future performance. 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. The Wilshire
5000 Index is an unmanaged index which measures the performance of all U.S.
headquartered equity securities with readily available price data. An individual
cannot invest directly in any index.
SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY
For the 12 months ended August 31, 1998, the Portfolio's Investment Class
Shares returned -8.79% and Institutional Class Shares returned -8.72%. Although
returns for the Small Company Value Portfolio were negative for the period, the
Portfolio outperformed the universe of small cap stocks. Helping performance for
the year were large weightings in the utilities and finance sectors which
combined had an average weight of over 41% of the Portfolio during the period.
Utilities stocks with relatively large weighting in the Portfolio such as
Minnesota Power (up 30%), Nevada Power (up 25%), and Rochester Gas and Electric
(up 31%) contributed to the performance of the Portfolio. The finance sector was
more mixed, with positive contributions to performance from ALLIED Group, CCB
Financial, and Sovereign Bancorp, whereas a relatively heavy weighting in Ohio
Casualty (down 16%) contributed negatively. The other sectors had generally
lackluster performance, resulting in an overall negative return.
The Small Company Value Portfolio continued to invest in sectors clearly
associated with a value orientation. These sectors typically include companies
which are undervalued relative to their earnings and book values. They also have
high dividend yield, which means simply that their price is low relative to the
size of the dividend. Demand for value stocks is driven by two types of
investors - those investors seeking high current income coming from the dividend
and those who feel the stock is undervalued relative to its earnings potential.
The Portfolio buys those stocks which exhibit both of these characteristics.
When demand is low for these types of securities, prices are slow to rise. Low
demand is typically a function of investor sentiment - meaning that, when
investors feel like their current holdings become overvalued, they sell them and
look for better deals.
PORTFOLIO INFORMATION(1)
(As of August 31, 1998)
DIVIDEND YIELD(2) ...................................... 2.8%
AVERAGE PRICE/BOOK RATIO ............................... 1.9
AVERAGE PRICE/EARNINGS RATIO ........................... 13.4
AVERAGE MARKET CAPITALIZATION .......................... $0.80 BILLION
(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.
SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... (8.79)%
FIVE YEARS ENDED 8/31/98 ............................. 8.46%
INCEPTION (9/30/92) THROUGH 8/31/98 .................. 10.41%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 8/31/98 ............................... (8.72)%
INCEPTION (7/15/96) THROUGH 8/31/98 .................. 11.38%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the year ended August
31, 1998, fees and expenses totaling 0.17% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING*
(As of August 31, 1998)
TECHNOLOGY 1.9%
ENERGY 3.1%
FINANCE 24.3%
TRANSPORTATION 4.1%
CAPITAL GOODS 7.5%
CONSUMER DURABLES 8.6%
UTILITIES 14.9%
MATERIALS & SERVICES 19.6%
CONSUMER
NON-DURABLES 16.0%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL MARKET VALUE.
SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES
OF SMALL COMPANY VALUE PORTFOLIO AND THE WILSHIRE 5000 INDEX
Small Company
Value Portfolio
Investment Wilshire
Values/Yrs Class Shares 5000 Index
---------- ----------------- -----------
9/30/92 $10,000 $10,000
11/30/92 10,280 10,541
2/28/93 11,358 10,905
5/31/93 11,463 11,217
8/31/93 11,972 11,702
11/30/93 11,730 11,727
2/28/94 11,887 12,038
5/31/94 11,511 11,717
8/31/94 11,971 12,261
11/30/94 11,202 11,772
2/28/95 12,068 12,674
5/31/95 12,493 13,782
8/31/95 13,388 14,948
11/30/96 14,127 16,018
2/29/96 14,507 17,009
5/31/96 14,868 18,097
8/31/96 14,729 17,522
11/30/96 16,237 19,954
2/28/97 16,866 20,777
5/31/97 17,848 22,192
8/31/97 19,697 24,059
11/30/97 20,588 25,437
2/28/98 22,258 27,945
5/31/98 22,428 28,901
8/31/98 17,966 24,702
Small Company
Value Portfolio
Institutional Wilshire
Values/Yrs Class Shares 500 Index
---------- ----------------- ----------
7/15/96 $10,000 $10,000
8/31/96 10,304 9,763
11/30/96 11,359 11,119
2/28/97 11,813 11,577
5/31/97 12,493 12,366
8/31/97 13,781 13,405
11/30/97 14,413 14,173
2/28/98 15,578 15,571
5/31/98 15,697 16,103
8/31/98 12,580 13,763
Past performance is not predictive of future performance. 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. The Wilshire
5000 Index is an unmanaged index which measures the performance of all U.S.
headquartered equity securities with readily available price data. An individual
cannot invest directly in any index.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO August 31, 1998
STATEMENT OF INVESTMENTS
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 100.3%
AEROSPACE - 0.8%
5,900 Textron, Inc. .................................... $ 370,225
8,400 United Technologies Corporation .................. 609,525
------------
979,750
------------
AIR TRANSPORTATION - 0.8%
6,500 AMR Corporation .................................. 354,250
5,200 FDX Corporation* ................................. 260,325
11,750 Southwest Airlines Company ....................... 209,296
2,100 UAL Corporation* ................................. 126,656
------------
950,527
------------
APPAREL - 0.2%
3,600 Jones Apparel Group* ............................. 69,750
2,200 Unifi, Inc. ...................................... 48,950
2,200 Warnaco Group, Inc., Class A ..................... 59,950
------------
178,650
------------
BANKS - 3.3%
8,375 Fifth Third Bancorp .............................. 445,445
34,600 First Union Corporation .......................... 1,678,100
300 M & T Bank Corporation ........................... 123,000
4,000 Northern Trust Corporation ....................... 223,000
27,000 Norwest Corporation .............................. 803,250
5,800 State Street Corporation ......................... 301,962
9,325 Synovus Financial Corporation .................... 169,598
2,400 Zions Bancorporation ............................. 92,100
------------
3,836,455
------------
BUSINESS MACHINES - 14.1%
7,200 BMC Software, Inc.* .............................. 304,650
2,600 Ceridian Corporation* ............................ 126,100
36,500 Cisco Systems, Inc.* ............................. 2,988,437
5,300 Comdisco, Inc. ................................... 65,919
23,300 Dell Computer Corporation* ....................... 2,330,000
5,600 Gateway 2000, Inc.* .............................. 264,950
2,600 Lexmark International Group, Class A* ............ 157,462
87,200 Microsoft Corporation* ........................... 8,365,750
35,150 Oracle Systems Corporation* ...................... 700,803
9,600 Pitney Bowes, Inc. ............................... 476,400
13,500 Sun Microsystems, Inc.* .......................... 534,938
6,850 Total System Services, Inc. ...................... 110,456
------------
16,425,865
------------
BUSINESS SERVICES - 2.2%
3,900 AccuStaff, Inc.* ................................. 48,750
2,700 Apollo Group, Inc., Class A* ..................... 82,012
10,800 Automatic Data Processing, Inc. .................. 688,500
3,500 Cintas Corporation ............................... 142,625
5,600 Computer Sciences Corporation .................... 316,750
4,600 Ecolab, Inc. ..................................... 127,938
5,300 Equifax, Inc. .................................... 188,812
2,800 Manpower, Inc. ................................... 57,050
5,700 Omnicom Group, Inc. .............................. 271,463
9,100 Parametric Technology Corporation* ............... 93,275
5,775 Paychex, Inc. .................................... 219,450
3,250 Robert Half International, Inc.* ................. 156,000
3,500 SunGard Data Systems, Inc.* ...................... 110,906
2,300 Synopsys, Inc.* .................................. 60,088
------------
2,563,619
------------
CHEMICALS - 0.3%
8,400 Air Products & Chemicals, Inc. ................... 256,725
2,100 Great Lakes Chemical Corporation ................. 82,163
------------
338,888
------------
CONSTRUCTION - 0.3%
1,600 Crane Company .................................... 64,400
6,100 Sherwin-Williams Company ......................... 145,638
1,300 Vulcan Materials Company ......................... 144,950
------------
354,988
------------
CONSUMER DURABLES - 0.5%
2,500 Hillenbrand Industries, Inc. ..................... 133,906
6,800 Leggett & Platt, Inc. ............................ 136,425
5,600 Newell Company, Inc. ............................. 267,400
------------
537,731
------------
COSMETICS - 5.5%
3,800 Clorox Company ................................... 366,462
10,600 Colgate-Palmolive Company ........................ 764,525
40,052 Gillette Company ................................. 1,647,139
48,100 Proctor & Gamble Company ......................... 3,679,650
------------
6,457,776
------------
DOMESTIC OIL - 0.1%
3,500 Transocean Offshore, Inc. ........................ 85,969
------------
DRUGS & MEDICINE - 21.2%
54,700 Abbott Laboratories .............................. 2,105,950
46,600 American Home Products Corporation ............... 2,335,825
9,400 Amgen, Inc.* ..................................... 572,225
8,800 Becton, Dickinson & Company ...................... 293,150
3,900 Biomet, Inc. ..................................... 104,812
3,950 Cardinal Health, Inc. ............................ 345,625
5,400 Guidant Corporation .............................. 333,450
8,700 Health Management Associates, Inc., Class A* ..... 157,144
48,200 Johnson & Johnson ................................ 3,325,800
16,800 Medtronic, Inc. .................................. 863,100
42,900 Merck & Company, Inc. ............................ 4,973,719
4,300 Mylan Laboratories, Inc. ......................... 98,362
46,300 Pfizer, Inc. ..................................... 4,305,900
2,600 Quintiles Transnational Corporation* ............. 92,950
26,300 Schering-Plough Corporation ...................... 2,261,800
3,400 Stryker Corporation .............................. 109,225
3,400 Sybron International Corporation * ............... 61,838
6,700 United Healthcare Corporation .................... 242,037
29,300 Warner-Lambert Company ........................... 1,911,825
3,100 Watson Pharmaceuticals, Inc.* .................... 139,694
2,500 Wellpoint Health Networks, Inc.* ................. 133,438
------------
24,767,869
------------
ELECTRONICS - 8.1%
4,700 ADC Telecommunications, Inc.* .................... 104,281
3,100 Altera Corporation* .............................. 90,288
3,300 American Power Conversion Corporation* ........... 89,100
5,700 Analog Devices, Inc.* ............................ 80,156
13,000 Applied Materials, Inc.* ......................... 319,313
7,400 Cadence Design Systems, Inc.* .................... 156,325
17,700 EMC Corporation* ................................. 799,819
37,200 Hewlett-Packard Company .......................... 1,806,525
58,600 Intel Corporation ................................ 4,171,587
3,000 KLA-Tencor Corporation* .......................... 63,750
2,800 Linear Technology Corporation .................... 131,600
4,600 Maxim Integrated Products, Inc.* ................. 126,500
2,100 SCI Systems, Inc.* ............................... 48,169
4,100 Solectron Corporation* ........................... 169,381
2,100 Symbol Technologies, Inc. ........................ 86,100
6,500 Tellabs, Inc.* ................................... 274,625
2,900 Teradyne, Inc.* .................................. 50,388
13,900 Texas Instruments, Inc. .......................... 662,856
5,600 Thermo Electron Corporation* ..................... 91,000
2,594 Xilinx, Inc.* .................................... 79,117
------------
9,400,880
------------
ENERGY & UTILITIES - 0.7%
6,200 AES Corporation* ................................. 168,950
2,900 CalEnergy Company, Inc.* ......................... 73,769
11,600 Enron Corporation ................................ 490,825
2,700 MCN Corporation .................................. 47,419
------------
780,963
------------
ENERGY - RAW MATERIALS - 0.2%
5,230 Baker Hughes, Inc. ............................... 95,448
5,000 ENSCO International, Inc. ........................ 52,500
3,485 EVI Weatherford, Inc.* ........................... 53,146
6,100 Global Marine, Inc.* ............................. 57,187
------------
258,281
------------
FINANCE - 2.5%
16,700 American Express Company ......................... 1,302,600
2,400 Capital One Financial Corporation ................ 210,000
4,000 Dime Bancorp, Inc. ............................... 76,000
3,350 Edwards (A.G.), Inc. ............................. 90,869
2,000 FINOVA Group, Inc. ............................... 89,250
9,000 Franklin Resources, Inc. ......................... 290,250
17,925 MBNA Corporation ................................. 421,237
4,100 Price (T. Rowe) Associates, Inc. ................. 124,794
9,450 Schwab (Charles) Corporation ..................... 282,319
------------
2,887,319
------------
FOOD & AGRICULTURE - 6.2%
16,400 Campbell Soup Company ............................ 826,150
88,600 Coca-Cola Company ................................ 5,770,075
8,650 Pioneer Hi-Bred International, Inc. .............. 291,938
12,000 Sysco Corporation ................................ 242,250
3,600 Whitman Corporation .............................. 55,800
------------
7,186,213
------------
INSURANCE - 1.0%
9,674 AFLAC, Inc. ...................................... 243,059
6,700 Conseco, Inc. .................................... 185,088
2,600 Progressive Corporation of Ohio .................. 253,338
7,050 SunAmerica, Inc. ................................. 436,659
------------
1,118,144
------------
MEDIA - 1.6%
4,400 Belo (A.H.) Corporation, Series A ................ 81,400
8,700 Clear Channel Communications, Inc.* .............. 391,500
10,200 Gannet Company, Inc. ............................. 601,800
2,800 Knight-Ridder, Inc. .............................. 133,350
3,600 McGraw-Hill Companies, Inc. ...................... 274,500
6,800 New York Times Company, Class A .................. 197,200
400 Washington Post Company, Class B ................. 205,000
------------
1,884,750
------------
MOTOR VEHICLES - 0.3%
3,700 Dana Corporation ................................. 144,994
5,400 Harley-Davidson, Inc. ............................ 166,387
2,400 Lear Corporation* ................................ 97,350
------------
408,731
------------
NONDURABLE & ENTERTAINMENT - 1.8%
4,700 Hasbro, Inc. ..................................... 147,169
10,325 Mattel, Inc. ..................................... 334,272
24,700 McDonald's Corporation ........................... 1,384,744
3,000 Starbucks Corporation* ........................... 94,687
4,600 Wendy's International, Inc. ...................... 92,287
------------
2,053,159
------------
PRODUCER GOODS - 9.9%
20,100 AlliedSignal, Inc. ............................... 689,681
3,600 Avery Dennison Corporation ....................... 193,275
2,600 Case Corporation ................................. 70,200
7,900 Dover Corporation ................................ 215,275
117,200 General Electric Company ......................... 9,376,000
9,000 Illinois Tool Works, Inc. ........................ 435,938
5,800 Ingersoll-Rand Company ........................... 230,550
2,900 Johnson Controls, Inc. ........................... 124,156
3,100 Miller (Herman), Inc. ............................ 63,550
4,272 Thermo Instrument Systems, Inc.* ................. 65,148
1,500 Trinity Industries, Inc. ......................... 45,375
------------
11,509,148
------------
RETAIL - 8.9%
8,800 Albertsons, Inc. ................................. 444,950
5,400 AutoZone, Inc.* .................................. 140,063
4,800 Bed Bath & Beyond, Inc.* ......................... 86,700
28,925 Cendant Corporation .............................. 334,445
3,500 Circuit City Stores, Inc. ........................ 108,062
3,818 Consolidated Stores Corporation* ................. 120,267
5,066 Dollar General Corporation ....................... 136,149
14,150 Gap, Inc. ........................................ 722,534
52,298 Home Depot, Inc. ................................. 2,013,473
5,600 Kohl's Corporation* .............................. 254,450
12,400 Lowe's Companies, Inc. ........................... 434,775
5,600 Office Depot, Inc.* .............................. 142,800
17,500 Walgreen Company ................................. 673,750
80,400 Wal-Mart Stores, Inc. ............................ 4,723,500
------------
10,335,918
------------
STEEL - 0.1%
3,100 Nucor Corporation ................................ 111,406
3,000 USX-U.S. Steel Group ............................. 62,813
------------
174,219
------------
TELEPHONE - 7.0%
39,100 Ameritech Corporation ............................ 1,842,587
35,500 BellSouth Corporation ............................ 2,433,969
3,250 Century Telephone Enterprises .................... 147,469
7,347 Qwest Communications International, Inc.* ........ 183,675
65,600 SBC Communications, Inc. ......................... 2,492,800
15,300 Sprint Corporation ............................... 1,026,056
------------
8,126,556
------------
TIRE & RUBBER - 0.1%
4,100 Danaher Corporation .............................. 148,625
------------
TRAVEL & RECREATION - 2.5%
3,500 Brunswick Corporation ............................ 52,281
21,200 Carnival Corporation ............................. 612,150
72,100 Disney (Walt) Company ............................ 1,978,244
3,500 Harrah's Entertainment, Inc. ..................... 50,531
2,000 MGM Grand, Inc.* ................................. 57,375
9,000 Marriott International, Inc. ..................... 252,563
------------
3,003,144
------------
TRUCKING & FREIGHT - 0.1%
2,700 PACCAR, Inc. ..................................... 110,700
------------
TOTAL COMMON STOCKS (COST $87,449,199) ........... 116,864,837
------------
TOTAL INVESTMENTS (COST $87,449,199**) .............. 100.3% 116,864,837
OTHER ASSETS AND LIABILITIES (NET) .................. (0.3)% (302,244)
------ ------------
NET ASSETS .......................................... 100.0% $116,562,593
====== ============
- ---------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $87,831,152.
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO August 31, 1998
STATEMENT OF INVESTMENTS
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 99.1%
AEROSPACE - 2.7%
4,700 General Dynamics Corporation ..................... $ 223,544
7,400 Lockheed Martin Corporation ...................... 647,037
2,500 Northrop Grumman Corporation ..................... 158,438
6,200 Textron, Inc. .................................... 389,050
4,600 TRW, Inc. ........................................ 197,225
-----------
1,615,294
-----------
AIR TRANSPORTATION - 0.5%
2,800 Delta Air Lines, Inc. ............................ 285,600
-----------
APPAREL - 0.3%
4,600 V.F. Corporation ................................. 174,225
-----------
BANKS - 24.7%
4,575 AmSouth Bancorporation ........................... 157,266
10,800 BB&T Corporation ................................. 304,425
26,479 Banc One Corporation ............................. 1,006,202
26,200 BankAmerica Corporation .......................... 1,678,438
10,914 BankBoston Corporation ........................... 389,493
3,700 Bankers Trust New York Corporation ............... 274,956
31,784 Chase Manhattan Corporation ...................... 1,684,552
5,950 Comerica, Inc. ................................... 310,888
4,200 Crestar Financial Corporation .................... 212,100
4,000 First American Corporation ....................... 143,500
10,987 First Chicago NBD ................................ 696,301
6,912 First Securities Corporation ..................... 107,136
36,450 First Union Corporation .......................... 1,767,825
10,300 Fleet Financial Group, Inc. ...................... 675,294
3,100 GreenPoint Financial Corporation ................. 78,081
7,823 Huntington Bancshares, Inc. ...................... 177,973
16,456 KeyCorp .......................................... 419,628
12,420 National City Corporation ........................ 729,675
35,400 NationsBank Corporation .......................... 2,017,800
3,725 Old Kent Financial Corporation ................... 120,131
11,500 PNC Bank ......................................... 494,500
5,600 Regions Financial Corporation .................... 193,900
5,750 SouthTrust Corporation ........................... 186,156
6,600 Summit Bankcorp .................................. 225,225
7,700 Wachovia Corporation ............................. 564,506
-----------
14,615,951
-----------
BUSINESS MACHINES - 7.0%
36,700 International Business Machines Corporation ...... 4,133,338
-----------
BUSINESS SERVICES - 0.6%
6,900 Browning-Ferris Industries, Inc. ................. 224,250
3,000 Deluxe Corporation ............................... 87,000
1,600 National Services Industries, Inc. ............... 59,600
-----------
370,850
-----------
CHEMICALS - 2.5%
8,800 Air Products & Chemicals, Inc. ................... 268,950
8,600 Dow Chemical Company ............................. 670,800
3,000 Eastman Chemical Company ......................... 154,687
2,900 Millennium Chemicals, Inc. ....................... 62,713
4,900 Morton International, Inc. ....................... 109,025
1,800 Olin Corporation ................................. 50,625
4,600 Union Carbide Corporation ........................ 184,863
-----------
1,501,663
-----------
CONSTRUCTION - 0.6%
1,500 Armstrong World Industries, Inc. ................. 72,000
3,100 Fluor Corporation ................................ 122,644
1,300 Vulcan Materials Company ......................... 144,950
-----------
339,594
-----------
CONSUMER DURABLES - 0.5%
3,600 Black & Decker Corporation ....................... 149,850
3,600 Maytag Corporation ............................... 155,250
-----------
305,100
-----------
DOMESTIC OIL - 2.5%
2,800 Ashland, Inc. .................................... 127,575
12,100 Atlantic Richfield Company ....................... 701,800
1,800 Kerr-McGee Corporation ........................... 69,525
1,700 Murphy Oil Corporation ........................... 60,031
1,800 Pennzoil Company ................................. 64,350
9,900 Phillips Petroleum Company ....................... 404,044
3,300 Ultramar Diamond Shamrock Corporation ............ 76,313
-----------
1,503,638
-----------
DRUGS & MEDICINE - 0.3%
2,500 Allergan, Inc. ................................... 118,125
2,100 Bard (C.R.), Inc. ................................ 68,775
-----------
186,900
-----------
ELECTRONICS - 1.6%
18,400 Electronic Data Systems Corporation .............. 616,400
3,000 Harris Corporation ............................... 95,625
4,400 ITT Industries, Inc. ............................. 132,550
2,100 Thomas & Betts Corporation ....................... 71,531
-----------
916,106
-----------
ENERGY & UTILITIES - 11.5%
4,600 Allegheny Energy, Inc. ........................... 122,475
5,500 Baltimore Gas & Electric Company ................. 169,469
5,900 Cinergy Corporation .............................. 205,025
8,800 Consolidated Edison Company New York, Inc. ....... 416,350
3,600 Consolidated Natural Gas Company ................. 157,725
5,950 DPL, Inc. ........................................ 107,100
2,900 DQE, Inc. ........................................ 103,494
5,300 DTE Energy Company ............................... 223,263
13,508 Duke Energy Corporation .......................... 842,561
14,300 Edison International ............................. 406,656
6,900 FPL Group, Inc. .................................. 459,281
4,700 GPU, Inc. ........................................ 176,544
10,600 Houston Industries, Inc. ......................... 305,412
5,872 MarketSpan Corporation ........................... 160,746
2,400 New England ElectricSystem ....................... 96,900
5,600 Northern States Power ............................ 148,400
3,000 OGE Energy Corporation ........................... 82,687
8,400 PECO Energy Company .............................. 287,700
14,300 PG & E Corporation ............................... 459,388
6,200 PP & L Resources, Inc. ........................... 146,088
8,700 Public Service Enterprise Group, Inc. ............ 318,638
3,100 Puget Sound Power & Light ........................ 77,887
4,000 SCANA Corporation ................................ 122,750
8,911 Sempra Energy .................................... 226,674
25,800 Southern Company ................................. 725,625
4,900 TECO Energy, Inc. ................................ 130,156
2,400 Western Resources, Inc. .......................... 96,750
-----------
6,775,744
-----------
ENERGY - RAW MATERIALS - 0.1%
2,300 Tidewater, Inc. .................................. 48,300
-----------
FINANCE - 1.9%
4,100 Ahmanson (H.F.) & Company ........................ 218,640
3,600 Edwards (A.G.), Inc. ............................. 97,650
6,700 J.P. Morgan & Company ............................ 623,100
5,200 Paine Webber Group, Inc. ......................... 180,700
-----------
1,120,090
-----------
FOOD & AGRICULTURE - 0.4%
2,800 Hormel Foods Corporation ......................... 77,175
2,800 McCormick & Company - Non Voting Shares .......... 81,375
4,600 Supervalu, Inc. .................................. 93,437
-----------
251,987
-----------
INSURANCE - 7.4%
32,300 Allstate Corporation ............................. 1,211,250
2,200 American Financial Group, Inc. ................... 73,150
9,500 American General Corporation ..................... 610,375
6,400 Chubb Corporation ................................ 400,000
6,200 Cincinnati Financial Corporation ................. 208,475
11,790 Conseco, Inc. .................................... 325,699
8,900 Hartford Financial Services Group, Inc. .......... 398,275
4,050 Jefferson-Pilot Corporation ...................... 229,837
5,150 Old Republic International Corporation ........... 114,909
4,300 Reliance Group Holdings, Inc. .................... 54,287
3,400 ReliaStar Financial Corporation .................. 133,450
8,700 St Paul Companies, Inc. .......................... 265,894
2,400 Transamerica Corporation ......................... 246,150
1,400 Unitrin, Inc. .................................... 78,925
-----------
4,350,676
-----------
INTERNATIONAL OIL - 9.4%
36,700 Amoco Corporation ................................ 1,662,969
24,800 Chevron Corporation .............................. 1,836,750
29,400 Mobil Corporation ................................ 2,032,275
-----------
5,531,994
-----------
MEDIA - 0.4%
7,200 New York Times Company, Class A .................. 208,800
-----------
MOTOR VEHICLES - 8.7%
24,400 Chrysler Corporation ............................. 1,088,850
3,900 Dana Corporation ................................. 152,831
2,700 Eaton Corporation ................................ 158,119
45,200 Ford Motor Company ............................... 1,988,800
26,700 General Motors Corporation ....................... 1,541,925
6,700 Genuine Parts Company ............................ 209,794
-----------
5,140,319
-----------
NON-DURABLE & ENTERTAINMENT - 0.4%
2,700 American Greetings Corporation, Class A .......... 98,887
5,000 Hasbro, Inc. ..................................... 156,563
-----------
255,450
-----------
NON-FERROUS METALS - 0.4%
2,200 Phelps Dodge Corporation ......................... 98,450
2,800 Reynolds Metals Company .......................... 134,225
-----------
232,675
-----------
PAPER & FOREST PRODUCTS - 0.5%
3,300 Consolidated Papers, Inc. ........................ 82,706
3,900 Mead Corporation ................................. 106,762
3,800 Westvaco Corporation ............................. 79,800
-----------
269,268
-----------
PRODUCER GOODS - 2.5%
4,600 Cooper Industries, Inc. .......................... 195,787
9,400 Deere & Company .................................. 309,613
1,800 Harsco Corporation ............................... 66,038
2,500 Hubbell, Inc. , Class B .......................... 89,375
6,200 Ingersoll-Rand Company ........................... 246,450
3,200 Johnson Controls, Inc. ........................... 137,000
4,150 Parker-Hannifin Corporation ...................... 120,350
2,300 Snap-On, Inc. .................................... 60,375
6,400 Tenneco, Inc. .................................... 202,800
2,300 Timken Company ................................... 41,831
-----------
1,469,619
-----------
RAILROADS & SHIPPING - 1.8%
8,200 CSX Corporation .................................. 309,550
14,100 Norfolk Southern Corporation ..................... 397,444
9,300 Union Pacific Corporation ........................ 370,256
-----------
1,077,250
-----------
RETAIL - 3.3%
9,300 Albertson's, Inc. ................................ 470,231
4,200 Dillard's, Inc., Class A ......................... 121,275
17,500 Food Lion, Inc., Class A ......................... 180,469
8,700 May Department Stores Company .................... 489,375
9,400 Penney (J.C.) Company ............................ 465,887
3,900 Tandy Corporation ................................ 212,794
-----------
1,940,031
-----------
TELEPHONE - 5.9%
58,250 Bell Atlantic Corporation ........................ 2,570,281
18,100 US West, Inc. .................................... 941,200
-----------
3,511,481
-----------
TIRE & RUBBER - 0.5%
5,900 Goodyear Tire & Rubber Company ................... 289,100
-----------
TRAVEL & RECREATION - 0.1%
3,700 Brunswick Corporation ............................ 55,269
-----------
TRUCKING & FREIGHT - 0.1%
2,800 Ryder System, Inc. ............................... 65,975
-----------
TOTAL COMMON STOCKS (COST $53,820,215) ........... 58,542,287
-----------
TOTAL INVESTMENTS (COST $53,820,215**) ........... 99.1% 58,542,287
OTHER ASSETS AND LIABILITIES (NET) ............... 0.9% 530,214
------ -----------
NET ASSETS ....................................... 100.0% $59,072,501
====== ===========
- ---------
** Aggregate cost for Federal tax purposes is $54,072,259.
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO AUGUST 31, 1998
STATEMENT OF INVESTMENTS
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 101.2%
AIR TRANSPORTATION - 1.7%
3,650 AAR Corporation .................................. $ 80,756
2,200 Air Express International Corporation ............ 37,675
2,900 Alaska Air Group, Inc.* .......................... 112,919
-----------
231,350
-----------
APPAREL - 4.3%
1,900 Buckle, Inc.* .................................... 37,288
2,400 Burlington Industries, Inc. ...................... 22,800
2,900 Dress Barn, Inc.* ................................ 50,387
1,700 Gymboree Corporation* ............................ 14,875
3,700 Just For Feet, Inc.* ............................. 52,494
4,400 The Men's Wearhouse, Inc.* ....................... 103,125
6,800 Nautica Enterprises, Inc.* ....................... 131,325
4,000 St John Knits, Inc. .............................. 76,250
9,150 Wolverine World Wide, Inc. ....................... 96,647
-----------
585,191
-----------
BANKS - 0.4%
1,100 Riggs National Corporation ....................... 24,200
1,300 TR Financial Corporation ......................... 26,894
-----------
51,094
-----------
BUSINESS MACHINES - 3.9%
3,600 Artesyn Technologies, Inc.* ...................... 53,550
1,400 Black Box Corporation* ........................... 32,025
1,600 Fair Issac & Company, Inc. ....................... 49,500
1,900 InaCom Corporation ............................... 36,575
5,700 Input/Output, Inc.* .............................. 55,575
1,800 MICROS Systems, Inc.* ............................ 51,300
800 Novellus Systems, Inc.* .......................... 21,300
6,300 Tech Data Corporation* ........................... 238,219
-----------
538,044
-----------
BUSINESS SERVICES - 13.4%
3,400 Alternative Resources Corporation* ............... 21,675
1,500 American Management Systems, Inc.* ............... 40,125
1,000 Analysts International Corporation ............... 21,125
1,500 Borg-Warner Security Corporation* ................ 21,281
3,800 Bowne & Company, Inc. ............................ 59,850
2,600 CDI Corporation* ................................. 61,100
2,800 CDW Computer Centers, Inc.* ...................... 107,800
5,200 CIBER, Inc.* ..................................... 130,650
2,800 Computer Task Group, Inc. ........................ 71,925
2,900 Credence Systems Corporation* .................... 42,050
11,300 DeVRY, Inc.* ..................................... 204,106
2,900 Dialogic Corporation* ............................ 77,575
2,600 Equity Corporation International* ................ 60,775
5,800 GTECH Holding Corporation* ....................... 152,250
2,300 HA-LO Industries* ................................ 53,475
3,000 Jacobs Engineering Group, Inc.* .................. 76,500
4,400 Mentor Corporation ............................... 64,350
3,700 National Data Corporation ........................ 129,500
1,500 Policy Management Systems Corporation* ........... 62,625
1,300 Pre Paid Legal Services, Inc.* ................... 28,844
700 Primark Corporation .............................. 16,537
900 QRS Corporation .................................. 24,412
1,500 Scientific Games Holdings Corporation* ........... 28,969
1,000 SEACOR SMIT, Inc. ................................ 34,500
4,900 S3, Inc.* ........................................ 15,006
2,450 TETRA Technologies, Inc.* ........................ 41,319
3,000 Vantive Corporation* ............................. 24,375
900 Wackenhut Corporation, Class A ................... 17,100
1,100 Wackenhut Corrections Corporation* ............... 17,256
3,600 Wind River Systems, Inc.* ........................ 135,000
-----------
1,842,055
-----------
CHEMICALS - 0.6%
2,750 Bio-Rad Laboratories, Inc., Class A* ............. 66,000
200 Rogers Corporation ............................... 5,150
1,100 Techne Corporation* .............................. 13,475
-----------
84,625
-----------
CONSTRUCTION - 6.2%
6,000 D.R. Horton, Inc. ................................ 96,000
1,300 Florida Rock Industries, Inc. .................... 35,831
6,100 Lennar Corporation ............................... 110,563
1,500 Lone Star Industries ............................. 90,188
4,600 NCI Building Systems, Inc.* ...................... 81,650
8,300 Oakwood Homes Corporation ........................ 118,275
1,100 Simpson Manufacturing Company, Inc.* ............. 32,037
1,800 Southdown, Inc. .................................. 76,050
2,900 TJ International, Inc. ........................... 60,719
6,000 Toll Brothers, Inc.* ............................. 153,375
-----------
854,688
-----------
CONSUMER DURABLES - 2.8%
6,200 Champion Enterprises, Inc.* ...................... 144,925
2,400 Coachmen Industries, Inc. ........................ 44,850
4,300 Ethan Allen Interiors, Inc. ...................... 139,750
1,400 Harman International Industries, Inc. ............ 49,088
-----------
378,613
-----------
CONTAINERS - 0.6%
6,050 Shorewood Packaging Corporation* ................. 78,650
-----------
DOMESTIC OIL - 0.1%
1,000 Tersoro Petroleum Corporation* ................... 12,875
300 Vintage Petroleum, Inc. .......................... 2,344
-----------
15,219
-----------
DRUGS & MEDICINE - 10.4%
3,700 Arrow International .............................. 100,362
5,500 Bindley Western Industries, Inc. ................. 144,375
1,600 Datascope Corporation* ........................... 32,600
4,900 Health Care and Retirement Corporation* .......... 124,950
2,800 Hologic, Inc.* ................................... 37,625
7,000 Invacare Corporation ............................. 141,750
3,000 Jones Pharma, Inc. ............................... 62,625
5,400 Marquette Medical Systems, Inc. .................. 128,588
4,158 Nature's Sunshine Products, Inc. ................. 58,732
9,000 NovaCare, Inc.* .................................. 65,813
2,500 Patterson Dental Company* ........................ 74,531
2,200 Pediatrix Medical Group, Inc.* ................... 85,662
1,300 PSS World Medical, Inc.* ......................... 19,987
4,200 Respironics, Inc.* ............................... 48,300
1,800 Sierra Health Services, Inc.* .................... 28,800
7,200 Thermedics, Inc.* ................................ 66,600
5,200 Universal Health Services, Inc., Class B* ........ 201,500
-----------
1,422,800
-----------
ELECTRONICS - 11.6%
8,000 Acxiom Corporation* .............................. $ 160,500
2,100 ADAC Laboratories, Inc.* ......................... 47,119
2,600 Anixter International, Inc.* ..................... 42,250
7,200 Aspect Telecommunications, Inc.* ................. 171,450
3,000 Belden, Inc. ..................................... 44,625
2,100 Burr-Brown Corporation* .......................... 25,200
1,300 Cable Design Technologies* ....................... 18,281
3,500 Coherent, Inc.* .................................. 31,281
1,100 CTS Corporation .................................. 31,212
4,700 Dallas Semiconductor Corporation ................. 127,194
1,600 Dionex Corporation* .............................. 34,500
4,300 Esterline Technologies Corporation ............... 68,800
2,900 Etec Systems, Inc.* .............................. 69,962
9,900 Gentex Corporation* .............................. 114,469
8,500 Hollywood Entertainment Corporation* ............. 87,656
4,200 Kent Electronics Corporation* .................... 38,325
2,550 Level One Communications, Inc.* .................. 44,466
1,100 Littelfuse, Inc.* ................................ 18,425
2,000 Marshall Industries* ............................. 47,375
1,900 Methode Electronics, Inc., Class A ............... 22,800
1,700 Premisys Communications, Inc.* ................... 14,450
7,600 Scientific-Atlanta, Inc. ......................... 134,425
3,600 Sequent Computer Systems, Inc.* .................. 23,175
5,100 Silicon Valley Group, Inc.* ...................... 49,087
1,100 Technitrol, Inc. ................................. 21,175
1,200 Unitrode Corporation* ............................ 14,925
2,500 Varian Associates, Inc. .......................... 85,156
-----------
1,588,283
-----------
ENERGY RAW MATERIALS - 0.1%
60 Swift Energy Company* ............................ 529
2,400 Varco International, Inc.* ....................... 17,100
-----------
17,629
-----------
FOOD & AGRICULTURE - 4.5%
2,600 Delta & Pine Land Company ........................ 111,638
1,050 Lindsay Manufacturing Company .................... 21,131
7,000 Richfood Holdings, Inc. .......................... 143,937
4,700 Scotts Company (The) - Class A* .................. 133,950
7,800 Smart & Final, Inc. .............................. 78,487
7,100 Smithfield Foods, Inc. * ......................... 129,575
-----------
618,718
-----------
INSURANCE - 4.9%
1,000 Acceptance Insurance Companies, Inc.* ............ 19,000
2,600 Executive Risk, Inc. ............................. 93,600
500 Markel Corporation* .............................. 70,500
1,800 NAC Re Corporation ............................... 84,938
4,500 Reinsurance Group of America, Inc. ............... 225,000
8,500 UICI* ............................................ 129,094
4,700 Vesta Insurance Group, Inc. ...................... 44,356
-----------
666,488
-----------
LIQUOR - 0.1%
500 Robert Mondavi Corporation, Class A* ............. 10,438
-----------
MISCELLANEOUS FINANCE - 8.0%
2,400 Aames Financial Corporation ...................... 15,600
3,200 AmeriCredit Corporation* ......................... 79,800
3,600 Bisys Group, Inc.* ............................... 133,200
3,600 CMAC Investment Corporation ...................... 138,600
3,700 Henry (Jack) & Associates ........................ 146,612
600 Investors Financial Services Corporation ......... 31,125
2,800 ITT Educational Services, Inc.* .................. 77,000
2,700 Jefferies Group, Inc. ............................ 77,119
4,466 Legg Mason, Inc. ................................. 212,135
5,500 Raymond James Financial, Inc. .................... 94,531
7,100 TIG Holdings, Inc. ............................... 98,069
-----------
1,103,791
-----------
MOTOR VEHICLES - 0.6%
3,500 Superior Industries International, Inc. .......... 72,844
1,300 Titan International, Inc. ........................ 13,812
-----------
86,656
-----------
NON-DURABLE & ENTERTAINMENT - 3.7%
6,900 Applebee's International, Inc. ................... 127,650
3,900 Catalina Marketing Corporation * ................. 164,044
600 Consolidated Products, Inc. ...................... 9,300
1,700 Department 56, Inc.* ............................. 50,150
1,200 IHOP Corporation* ................................ 45,150
1,300 Outback Steakhouse, Inc.* ........................ 39,081
300 Papa John's International, Inc.* ................. 7,950
2,800 Regis Corporation ................................ 63,700
-----------
507,025
-----------
NON-FERROUS METALS - 1.2%
2,200 Reliance Steel & Aluminum Co. .................... 67,100
3,300 Wolverine Tube, Inc. ............................. 96,731
-----------
163,831
-----------
OPTICAL & PHOTO - 0.1%
1,900 BMC Industries, Inc. ............................. 7,600
-----------
PAPER & FOREST PRODUCTS - 0.2%
2,400 Lydall, Inc.* .................................... 33,300
-----------
PRODUCER GOODS - 9.9%
6,000 Applied Power, Inc., Class A ..................... 148,875
1,400 Barnes Group, Inc. ............................... 33,512
7,900 Blyth Industries, Inc.* .......................... 181,206
4,800 Boise Cascade Office Products Corporation* ....... 65,700
1,300 Cognex Corporation* .............................. 18,200
7,700 CompuCom Systems, Inc.* .......................... 32,725
6,260 CUNO, Inc.* ...................................... 94,683
600 DT Industries, Inc. .............................. 8,831
1,650 Graco, Inc. ...................................... 41,044
5,100 HON INDUSTRIES, Inc. ............................. 109,650
800 IDEX Corporation ................................. 16,800
7,700 JLG Industries, Inc. ............................. 113,094
1,900 Kuhlman Corporation .............................. 44,888
2,900 Mascotech, Inc. .................................. 50,750
3,000 Oceaneering International, Inc.* ................. 27,938
4,400 Precision Castparts Corporation .................. 165,825
200 SPS Technologies, Inc.* .......................... 8,350
3,050 Watsco, Inc. ..................................... 44,606
4,600 Wyman-Gordon Company* ............................ 64,400
2,900 Zebra Technologies Corporation, Class A* ......... 90,081
-----------
1,361,158
-----------
RETAIL - 7.3%
8,500 Casey's General Stores, Inc. ..................... 109,969
2,600 Central Garden & Pet Company* .................... 36,725
9,750 Claire's Stores, Inc. ............................ 146,250
4,400 Eagle Hardware & Garden, Inc.* ................... 94,050
6,200 Fingerhut Companies, Inc. ........................ 150,350
900 Friedman's, Inc., Class A* ....................... 8,662
6,700 Neiman Marcus Group, Inc. ........................ 162,894
15,350 Pier 1 Imports, Inc. ............................. 152,541
900 ShopKo Stores, Inc.* ............................. 23,119
6,200 Stein Mart, Inc.* ................................ 55,025
500 United Stationers, Inc.* ......................... 29,625
3,700 West Marine, Inc.* ............................... 27,287
-----------
996,497
-----------
STEEL - 0.2%
1,200 Citation Corporation ............................. 12,750
1,800 Lone Star Technologies, Inc.* .................... 17,888
-----------
30,638
-----------
TRAVEL & RECREATION - 1.0%
2,000 Anchor Gaming Company* ........................... 96,000
2,300 Rio Hotel & Casino, Inc.* ........................ 34,356
100 Speedway Motorsports, Inc.* ...................... 1,625
-----------
131,981
-----------
TRUCKING & FREIGHT - 3.4%
4,700 Expeditors International of Washington, Inc. ..... 130,719
3,323 Heartland Express, Inc.* ......................... 53,168
1,900 Hunt (J.B.) Transport Services, Inc. ............. 32,181
2,200 Landstar System, Inc.* ........................... 62,975
4,550 Swift Transportation Company, Inc.* .............. 74,506
7,825 Werner Enterprises, Inc. ......................... 115,419
-----------
468,968
-----------
TOTAL COMMON STOCKS (Cost $16,731,513) ........... 13,875,330
-----------
TOTAL INVESTMENTS (Cost $16,731,513**) .......... 101.2% 13,875,330
OTHER ASSETS AND LIABILITIES (Net) .............. (1.2)% (161,588)
------ -----------
NET ASSETS ...................................... 100.0% $13,713,742
====== ===========
- ---------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $16,878,548.
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO AUGUST 31, 1998
STATEMENT OF INVESTMENTS
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 99.4%
APPAREL - 3.2%
5,700 Guilford Mills, Inc. ............................. $ 83,719
4,700 Kellwood Company ................................. 125,431
6,000 Phillips-Van Heusen Corporation .................. 56,625
3,100 Pillowtex Corporation ............................ 85,638
8,000 Russell Corporation .............................. 253,000
4,300 Springs Industries, Inc., Class A ................ 142,169
7,000 Talbots .......................................... 147,438
-----------
894,020
-----------
BANKS - 13.6%
9,800 BanCorp South, Inc. .............................. 169,050
6,500 Bank United Corporation, Class A ................. 216,125
7,875 CNB Bancshares, Inc. ............................. 338,625
5,900 Centura Banks, Inc. .............................. 331,875
3,275 Chittenden Corporation ........................... 93,542
6,200 Citizens Banking Corporation of Michigan ......... 177,475
5,043 Commerce Bancorp, Inc. ........................... 177,135
4,602 F&M National Corporation ......................... 122,528
3,450 FNB Corporation .................................. 100,050
4,900 First Commonwealth Financial ..................... 112,700
6,900 First Hawaiian, Inc. ............................. 202,687
13,217 Fulton Financial Corporation ..................... 259,384
6,701 HUBCO, Inc. ...................................... 177,577
5,126 Mid Am, Inc. ..................................... 107,005
7,156 One Valley Bancorp, Inc. ......................... 211,102
5,226 Provident Bankshares ............................. 117,585
3,100 S&T Bancorp, Inc. ................................ 155,194
7,450 Susquehanna Bancshares, Inc. ..................... 146,206
3,900 TR Financial Corporation ......................... 80,681
5,166 Trustco Bank Corporation ......................... 137,222
8,800 United Bankshares, Inc. .......................... 218,900
4,700 Whitney Holding Corporation ...................... 172,138
-----------
3,824,786
-----------
BUSINESS SERVICES - 4.0%
4,600 ABM Industries, Inc. ............................. 117,300
3,650 American Business Products ....................... 63,875
8,200 Bowne & Company, Inc. ............................ 129,150
2,200 Chemed Corporation ............................... 64,763
9,900 Integrated Health Services, Inc. ................. 191,812
11,100 Ogden Corporation ................................ 255,994
18,000 Olsten Corporation ............................... 105,750
6,200 Standard Register Company ........................ 194,525
-----------
1,123,169
-----------
CHEMICALS - 2.9%
4,900 Brady (W. H.) Company ............................ 82,075
8,800 Calgon Carbon Corporation ........................ 54,450
5,100 Dexter Corporation ............................... 126,225
3,200 Fuller (H. B.) Company ........................... 152,000
5,100 Geon Company ..................................... 98,813
1,600 NCH Corporation .................................. 91,000
7,900 Schulman (A.), Inc. .............................. 125,412
6,900 Wellman, Inc. .................................... 78,919
-----------
808,894
-----------
CONSTRUCTION - 6.2%
4,800 Centex Construction Products, Inc. ............... 185,400
6,050 Granite Construction, Inc. ....................... 143,687
11,500 Interface, Inc. .................................. 140,875
8,600 Kaufman and Broad Home Corporation ............... 183,825
2,400 Lawson Products, Inc. ............................ 52,050
9,400 Pulte Corporation ................................ 271,425
2,500 Republic Group, Inc. ............................. 36,406
6,500 Standard Pacific Corporation ..................... 76,781
2,900 Stone & Webster, Inc. ............................ 98,781
3,700 TJ International, Inc. ........................... 77,469
4,600 Texas Industries, Inc. ........................... 166,462
8,900 United Dominion Industries, Ltd. ................. 216,381
2,700 U.S. Home Corporation* ........................... 76,444
-----------
1,725,986
-----------
CONSUMER DURABLES - 2.4%
2,600 Haverty Furniture Companies, Inc. ................ 50,700
9,300 Kimball International, Inc., Class B ............. 159,263
4,000 La-Z-Boy, Inc. ................................... 210,750
1,700 National Presto Industries ....................... 62,369
2,000 Skyline Corporation .............................. 56,500
5,900 Sturm Ruger & Company, Inc. ...................... 82,600
2,800 Toro Company ..................................... 61,600
-----------
683,782
-----------
CONTAINERS - 0.9%
6,800 Ball Corporation ................................. 254,150
-----------
COSMETICS - 0.4%
4,200 Church & Dwight Co., Inc. ........................ 113,662
-----------
DOMESTIC OIL - 0.7%
7,400 Snyder Oil Corporation ........................... 110,075
5,900 Tersoro Petroleum Corporation* ................... 75,963
-----------
186,038
-----------
DRUGS & MEDICINE - 1.4%
4,700 Bindley Western Industries, Inc. ................. 123,375
3,000 Diagnostic Products Corporation .................. 77,813
7,200 Owens & Minor, Inc. .............................. 85,050
3,600 West Company, Inc. ............................... 94,275
-----------
380,513
-----------
ELECTRONICS - 1.9%
10,000 EG&G, Inc. ....................................... 234,375
5,000 Gerber Scientific, Inc. .......................... 118,437
4,000 MTS Systems Corporation .......................... 50,000
7,800 Methode Electronics, Inc., Class A ............... 93,600
2,500 Park Electrochemical Corporation ................. 33,437
-----------
529,849
-----------
ENERGY & UTILITIES - 14.3%
3,000 Bay State Gas Company ............................ 115,500
2,800 California Water Services Company ................ 61,250
4,500 Eastern Utilities Association .................... 111,656
3,700 Empire District Electric Company ................. 77,469
6,400 Energen Corporation .............................. 100,000
8,200 Equitable Resources, Inc. ........................ 179,375
8,300 Idaho Power Company .............................. 252,631
5,000 Indiana Energy, Inc. ............................. 143,438
3,900 Laclede Gas Company .............................. 88,237
11,325 MDU Resources Group .............................. 289,495
3,500 Madison Gas & Electric Company ................... 80,500
7,500 Minnesota Power & Light Company .................. 319,219
11,200 Nevada Power Company ............................. 277,900
3,900 New Jersey Resources ............................. 131,381
5,400 Northwest Natural Gas Company .................... 131,625
3,900 Northwestern Corporation ......................... 98,231
6,900 ONEOK, Inc. ...................................... 207,431
6,700 Piedmont Natural Gas, Inc. ....................... 188,856
4,400 Public Service Company of North Carolina, Inc. ... 85,800
8,600 Rochester Gas & Electric Company ................. 251,013
5,200 SIGCORP, Inc. .................................... 167,050
6,100 Southwest Gas Corporation ........................ 110,944
3,200 United Illuminating Company ...................... 160,200
5,200 WPS Resources Corporation ........................ 175,175
12,400 Washington Water Power ........................... 210,025
-----------
4,014,401
-----------
ENERGY - RAW MATERIALS - 2.2%
6,200 AMCOL International Corporation .................. 72,850
8,700 Arch Coal Corporation ............................ 162,038
4,700 Berry Petroleum, Class A ......................... 57,575
4,900 Cleco Corporation ................................ 152,206
4,600 Eastern Enterprises .............................. 181,988
-----------
626,657
-----------
FINANCE - 1.2%
4,400 Bay View Capital Corporation ..................... 74,800
2,800 Dain Rauscher Corporation ........................ 104,125
2,200 JSB Financial, Inc. .............................. 99,550
9,700 Phoenix Investment Partners, Ltd. ................ 64,263
-----------
342,738
-----------
FOOD & AGRICULTURE - 2.1%
9,200 Bob Evans Farms, Inc. ............................ 169,625
9,800 DIMON, Inc. ...................................... 90,037
6,600 Lance, Inc. ...................................... 122,100
6,000 Mississippi Chemical Corporation ................. 75,375
6,400 Smucker (J.M.) Company, Class A .................. 138,800
-----------
595,937
-----------
INSURANCE - 9.3%
9,100 Alfa Corporation ................................. 170,625
8,625 ALLIED Group, Inc. ............................... 404,836
6,300 Berkley (W.R.) Corporation ....................... 199,238
11,900 First American Financial Corporation ............. 306,425
6,000 Foremost Corporation of America .................. 108,375
3,800 Gallagher (Arthur J.) & Company .................. 140,600
6,500 HSB Group, Inc. .................................. 281,937
6,400 Harleysville Group, Inc. ......................... 124,800
4,100 MMI Companies .................................... 66,112
7,500 Ohio Casualty Company ............................ 281,250
6,200 Orion Capital Corporation ........................ 230,950
6,500 Selective Insurance Group ........................ 115,578
2,600 Trenwick Group, Inc. ............................. 89,700
3,700 Zenith National Insurance Corporation ............ 87,412
-----------
2,607,838
-----------
LIQUOR - 1.2%
8,100 Coors, Adolph Company, Class B ................... 334,125
-----------
MEDIA - 2.5%
6,500 Banta Corporation ................................ 182,000
19,100 Hollingher International, Inc. ................... 267,400
6,000 Media General, Inc., Class A ..................... 255,000
-----------
704,400
-----------
MOTOR VEHICLES - 6.5%
6,300 Arctic Cat, Inc. ................................. 54,338
5,500 Arvin Industries, Inc. ........................... 207,625
5,300 Borg-Warner Automotive, Inc. ..................... 214,650
10,900 Donaldson Company, Inc. .......................... 193,475
8,000 Fleetwood Enterprises, Inc. ...................... 267,500
6,566 Modine Manufacturing Company ..................... 182,617
3,970 Myers Industries, Inc. ........................... 81,881
5,800 Polaris Industries, Inc. ......................... 175,812
4,000 Simpson Industries, Inc. ......................... 42,000
5,200 Smith (A.O.) Corporation ......................... 98,150
6,100 Superior Industries International, Inc. .......... 126,956
4,800 Titan International, Inc. ........................ 51,000
5,200 Winnebago Industries, Inc. ....................... 54,600
4,200 Wynns International, Inc. ........................ 71,137
-----------
1,821,741
-----------
NON-DURABLES & ENTERTAINMENT - 1.2%
8,700 First Brands Corporation ......................... 173,456
5,100 Luby's Cafeterias, Inc. .......................... 77,775
4,900 Russ Berrie and Company, Inc. .................... 94,019
-----------
345,250
-----------
NON-FERROUS METALS - 1.2%
8,700 ASARCO, Inc. ..................................... 138,656
3,600 Brush Wellman, Inc. .............................. 52,650
3,100 Castle (A.M.) & Company .......................... 56,187
3,300 Commercial Metals Company ........................ 80,437
-----------
327,930
-----------
PAPER & FOREST PRODUCTS - 1.8%
4,800 Chesapeake Corporation ........................... 157,200
9,200 Glatefelter (P.H.) Company ....................... 106,950
8,600 Pentair, Inc. .................................... 239,725
-----------
503,875
-----------
PRODUCER GOODS - 7.2%
6,300 Aeroquip-Vickers, Inc. ........................... 253,969
6,654 Albany International Corporation, Class A ........ 127,674
4,850 Applied Industrial Technologies, Inc. ............ 84,572
4,600 Barnes Group, Inc. ............................... 110,113
1,600 Butler Manufacturing Company ..................... 38,900
8,700 Cincinnati Milacron, Inc. ........................ 168,563
5,350 CLARCOR, Inc. .................................... 84,931
2,300 Curtiss-Wright Corporation ....................... 101,344
5,700 Graco, Inc. ...................................... 141,788
5,050 Hughes Supply, Inc. .............................. 137,613
4,100 Juno Lighting, Inc. .............................. 78,925
1,900 NACCO Industries, Inc. ........................... 180,975
11,600 ROHN Industries, Inc. ............................ 33,350
3,700 Standard Products Company ........................ 94,350
2,900 Standex International Corporation ................ 64,525
4,800 Tecumseh Products Company, Class A ............... 228,300
5,900 Watts Industries, Inc., Class A .................. 98,456
-----------
2,028,348
-----------
RAILROAD & SHIPPING - 0.8%
9,900 Alexander & Baldwin, Inc. ........................ 232,650
-----------
RETAIL - 2.7%
3,600 Enesco Group, Inc. ............................... 86,850
8,400 Great Atlantic & Pacific Tea Company, Inc. ....... 200,025
4,600 Hancock Fabrics, Inc. ............................ 43,700
8,500 Longs Drug Stores, Inc. .......................... 290,063
5,700 ShopKo Stores, Inc.* ............................. 146,419
-----------
767,057
-----------
STEEL - 2.4%
6,500 Birmingham Steel Corporation ..................... 44,687
5,100 Carpenter Technology Corporation ................. 184,556
2,600 Cleveland-Cliffs, Inc. ........................... 94,900
10,800 Inland Steel Industries, Inc. .................... 204,525
5,600 Intermet Corporation ............................. 84,000
3,100 Quanex Corporation ............................... 67,425
-----------
680,093
-----------
TELEPHONE - 0.7%
8,000 Aliant Communications, Inc. ...................... 198,000
-----------
TOBACCO - 1.2%
3,500 Schweitzer-Maudit International, Inc. ............ 86,844
7,900 Universal Corporation ............................ 248,850
-----------
335,694
-----------
TRANSPORTATION - AIR - 2.1%
6,200 AAR Corporation .................................. 137,175
11,100 Airborne Freight Corporation ..................... 216,450
6,700 ASA Holdings, Inc. ............................... 229,475
-----------
583,100
-----------
TRUCKING & FREIGHT - 1.2%
4,600 Roadway Express, Inc. ............................ 69,575
13,350 Rollins Truck Leasing Corporation ................ 126,825
5,700 USFreightways Corporation ........................ 127,894
-----------
324,294
-----------
TOTAL COMMON STOCKS (Cost $27,894,450) ........... 27,898,977
-----------
TOTAL INVESTMENTS (Cost $27,894,450**) ............ 99.4% 27,898,977
OTHER ASSETS AND LIABILITIES (Net) ................ 0.6% 156,179
------ -----------
NET ASSETS ........................................ 100.0% $28,055,156
====== ===========
- ---------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $28,148,507.
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 1998
<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 ........... $116,864,837 $58,542,287 $13,875,330 $27,898,977
Cash ................................... 701,097 336,164 22,634 208,434
Dividends receivable ................... 90,695 213,648 2,469 73,327
Receivable for Portfolio shares sold ... 274,252 173,080 2,200 2,500
Prepaid expenses and other assets ...... 14,569 6,216 1,874 4,955
------------ ----------- ----------- -----------
Total Assets ......................... 117,945,450 59,271,395 13,904,507 28,188,193
------------ ----------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased 839,540 -- -- --
Payable for Portfolio shares redeemed .. 401,108 119,650 140,129 57,952
Investment advisory fee payable (Note 2) 28,110 13,841 1,438 2,715
Administration fee payable (Note 2) .... 19,116 10,555 4,407 6,321
Distribution and service fees payable (Note 3) 990 4,091 7,468 8,643
Directors' fees payable (Note 2) ....... 8,042 4,554 1,183 2,231
Transfer agent fees payable ............ 10,544 7,336 4,048 4,833
Custodian fees payable (Note 2) ........ 45,776 2,143 7,134 28,742
Accrued legal and audit fees ........... 14,552 19,473 8,619 12,506
Accrued expenses and other payables .... 15,079 17,251 16,339 9,094
------------ ----------- ----------- -----------
Total Liabilities .................... 1,382,857 198,894 190,765 133,037
------------ ----------- ----------- -----------
NET ASSETS ............................. $116,562,593 $59,072,501 $13,713,742 $28,055,156
============ =========== =========== ===========
Investments, at cost (Note 1) $ 87,449,199 $53,820,215 $16,731,513 $27,894,450
============ =========== =========== ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES - (CONTINUED)
AUGUST 31, 1998
<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 .... $ 109,340 $ 814,585 $ 0 $ 520,829
Accumulated net realized gain on
investments sold ...................... 9,535,733 3,330,087 1,140,177 2,829,641
Net unrealized appreciation/(depreciation)
of investments ........................ 29,415,638 4,722,072 (2,856,183) 4,527
Par value ............................... 4,467 3,062 1,163 2,038
Paid-in capital ......................... 77,497,415 50,202,695 15,428,585 24,698,121
------------ ----------- ----------- -----------
$116,562,593 $59,072,501 $13,713,742 $28,055,156
============ =========== =========== ===========
NET ASSETS:
Investment Class shares ................. $ 81,569,436 $13,055,122 $ 9,659,592 $17,601,568
============ =========== =========== ===========
Institutional Class shares .............. $ 34,993,157 $46,017,379 $ 4,054,150 $10,453,588
============ =========== =========== ===========
SHARES OUTSTANDING:
Investment Class shares ................. 3,127,055 676,717 819,714 1,278,055
============ =========== =========== ===========
Institutional Class shares .............. 1,339,963 2,385,240 343,736 759,545
============ =========== =========== ===========
INVESTMENT CLASS SHARES:
Net asset value, offering and redemption
price per share ....................... $ 26.09 $ 19.29 $ 11.78 $ 13.77
============ =========== =========== ===========
INSTITUTIONAL CLASS SHARES:
Net asset value, offering and redemption
price per share ....................... $ 26.12 $ 19.29 $ 11.79 $ 13.76
============ =========== =========== ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1998
<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 ............................... $ 1,178,522 $ 1,800,545 $ 41,415 $ 1,198,275
------------ ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 2) ........ 340,667 165,814 50,422 122,710
Administration fee (Note 2) ............. 231,401 126,488 57,253 100,626
Transfer agent fees ..................... 98,154 83,927 52,674 60,851
Custodian fees (Note 2) ................. 80,383 34,551 38,795 71,839
Registration and filing fees ............ 32,620 27,539 28,734 21,766
Legal and audit fees .................... 57,467 42,221 16,329 29,761
Amortization of organization costs ...... 288 300 279 207
Directors' fees and expenses (Note 2) ... 26,381 14,018 4,110 9,663
Distribution and service fees (Note 3) .. 89,828 15,374 13,866 20,179
Other ................................... 32,883 40,389 22,253 30,466
------------ ----------- ----------- -----------
Subtotal .............................. 990,072 550,621 284,715 468,068
Fees waived by investment adviser (Note 2) (59,495) (34,117) (30,253) (73,626)
Custody earnings credit (Note 2) ........ (29,232) (16,204) (5,442) (9,731)
------------ ----------- ----------- -----------
Total net expenses .................... 901,345 500,300 249,020 384,711
------------ ----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) ............ 277,177 1,300,245 (207,605) 813,564
------------ ----------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (Notes 1 and 4):
Net realized gain on investments
during the year ....................... 10,383,182 4,945,729 2,011,078 5,339,727
Net change in unrealized
appreciation/(depreciation) of
investments during the year ........... 6,306,998 (5,647,482) (6,409,125) (7,862,127)
------------ ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS ........................ 16,690,180 (701,753) (4,398,047) (2,522,400)
------------ ----------- ----------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ 16,967,357 $ 598,492 $(4,605,652) $(1,708,836)
============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED AUGUST 31, 1998
<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) ............ $ 277,177 $ 1,300,245 $ (207,605) $ 813,564
Net realized gain on investments sold
during the year ....................... 10,383,182 4,945,729 2,011,078 5,339,727
Net change in unrealized
appreciation/(depreciation) of
investments during the year ........... 6,306,998 (5,647,482) (6,409,125) (7,862,127)
------------ ----------- ----------- -----------
Net increase/(decrease) in net assets
resulting fromoperations .............. 16,967,357 598,492 (4,605,652) (1,708,836)
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income:
Investment Class shares ............... (163,981) (244,804) -- (419,255)
Institutional Class shares ............ (120,133) (1,003,982) -- (579,686)
Net realized gain on investments:
Investment Class shares ............... (1,534,396) (771,044) (587,865) (2,215,054)
Institutional Class shares ............ (966,968) (3,115,078) (185,135) (3,027,827)
------------ ----------- ----------- -----------
Total distributions to shareholders ..... (2,785,478) (5,134,908) (773,000) (6,241,822)
CAPITAL STOCK TRANSACTIONS:
Investment Class shares:
Shares sold ......................... 44,046,821 1,688,056 6,148,503 12,116,142
Shares issued as reinvestment
of dividends ...................... 1,615,105 959,302 560,583 2,577,679
Shares redeemed ..................... (44,780,789) (2,823,410) (7,711,871) (13,000,213)
------------ ----------- ----------- -----------
Total Investment Class shares ........... 881,137 (176,052) (1,002,785) 1,693,608
------------ ----------- ----------- -----------
Institutional Class shares:
Shares sold ......................... 18,495,880 15,553,067 845,000 --
Shares issued as reinvestment
of dividends ...................... 1,059,360 3,921,647 185,135 3,607,512
Shares redeemed ..................... (33,416,882) (19,012,941) (4,836) (16,005,782)
------------ ----------- ----------- -----------
Total Institutional Class shares ........ (13,861,642) 461,773 1,025,299 (12,398,270)
------------ ----------- ----------- -----------
Net increase/(decrease) in net assets
from Capital Stock transactions ....... (12,980,505) 285,721 22,514 (10,704,662)
------------ ----------- ----------- -----------
Net increase/(decrease) in net assets ... 1,201,374 (4,250,695) (5,356,138) (18,655,320)
------------ ----------- ----------- -----------
NET ASSETS:
Beginning of year ....................... 115,361,219 63,323,196 19,069,880 46,710,476
------------ ----------- ----------- -----------
End of year ............................. $116,562,593 $59,072,501 $13,713,742 $28,055,156
============ =========== =========== ===========
Undistributed net investment income/(loss) $ 109,340 $ 814,585 $ -- $ 520,829
============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (CONTINUED)
YEAR ENDED AUGUST 31, 1998
<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 ......................... 1,552,347 73,722 379,304 712,914
Shares issued as reinvestment
of dividends ...................... 64,812 46,098 36,213 156,508
Shares redeemed ..................... (1,562,097) (125,810) (467,078) (768,208)
------------ ----------- ----------- -----------
Net increase/(decrease) in Investment
Class shares outstanding .............. 55,062 (5,990) (51,561) 101,214
============ =========== =========== ===========
Institutional Class shares:
Shares sold ......................... 647,522 696,218 55,136 --
Shares issued as reinvestment
of dividends ...................... 42,477 188,541 11,960 219,301
Shares redeemed ..................... (1,101,326) (909,636) (342) (992,911)
------------ ----------- ----------- -----------
Net increase/(decrease) in Institutional
Class shares outstanding .............. (411,327) (24,877) 66,754 (773,610)
============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
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) ............ $ 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.
<PAGE>
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.
<PAGE>
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........ $ 23.92 $ 19.35 $ 16.34 $ 13.31 $ 12.74
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.04 0.04*** 0.07 0.10 0.15
Net realized and unrealized gain on
investments .......................... 2.71 7.29 3.45 3.03 0.65
-------- -------- -------- -------- --------
Total from investment operations .......... 2.75 7.33 3.52 3.13 0.80
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.06) (0.03) (0.12) (0.10)
(0.23)
Distributions from capital gains .......... (0.52) (2.73) (0.39) -- --
-------- -------- -------- -------- --------
Total distributions ....................... (0.58) (2.76) (0.51) (0.10) (0.23)
-------- -------- -------- -------- --------
Net asset value, end of year .............. $ 26.09 $ 23.92 $ 19.35 $ 16.34 $ 13.31
======== ======== ======== ======== ========
Total return (a) .......................... 11.61% 40.91% 21.90% 23.67% 6.34%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) ........ $ 81,569 $ 73,480 $ 19,035 $ 21,348 $ 8,424
Operating expenses including
reimbursement/waiver/custody
earnings credit ...................... 0.71% 0.81% 0.93% 0.84% 0.68%
Operating expenses excluding custody
earnings credit ...................... 0.73% 0.91% -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ...................... 0.77% 1.09% 0.96% 1.05% 1.39%
Net investment income including
reimbursement/waiver/custody
earnings credit ...................... 0.16% 0.20% 0.39% 0.94% 1.18%
Portfolio turnover rate ................... 57% 43% 44% 30% 22%
- --------------
*** The selected per share data was calculated using the weighted average shares outstanding method for the
year.
(a) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 ENDED AUGUST 31, PERIOD
--------------------- ENDED
1998 1997 8/31/96(1)
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ............................ $ 23.91 $ 19.35 $ 18.27
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................... 0.08 0.05*** 0.01
Net realized and unrealized gain on investments ................. 2.72 7.29 1.07
-------- -------- --------
Total from investment operations ................................ 2.80 7.34 1.08
-------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................ (0.07) (0.05) --
Distributions from capital gains ................................ (0.52) (2.73) --
-------- -------- --------
Total distributions ............................................. (0.59) (2.78) --
-------- -------- --------
Net asset value, end of period .................................. $ 26.12 $ 23.91 $ 19.35
======== ======== ========
Total return (a) ................................................ 11.78% 40.99% 5.91%**
======== ======== ========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ............................ $ 34,993 $ 41,881 $ 7,763
Operating expenses including reimbursement/waiver/custody
earnings credit ............................................... 0.60% 0.78% 0.91%*
Operating expenses excluding custody earnings credit ............ 0.62% 0.87% --
Operating expenses excluding reimbursement/waiver/custody
earnings credit ............................................... 0.66% 1.06% 0.94%*
Net investment income including
reimbursement/waiver/custody earnings credit .................. 0.27% 0.23% 0.41%*
Portfolio turnover rate ......................................... 57% 43% 44%**
- ----------------
* 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.
See Notes to Financial Statements.
</TABLE>
<PAGE>
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........ $ 20.49 $ 17.80 $ 16.02 $ 13.99 $ 15.18
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.38 0.47*** 0.85 0.34 0.36
Net realized and unrealized gain/(loss)
on investments ....................... 0.01 5.13 1.91 2.19 (0.90)
-------- -------- -------- -------- --------
Total from investment operations .......... 0.39 5.60 2.76 2.53 (0.54)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.38) (0.60) (0.47) (0.40) (0.36)
Distributions from capital gains .......... (1.21) (2.31) (0.51) (0.10) (0.29)
-------- -------- -------- -------- --------
Total distributions ....................... (1.59) (2.91) (0.98) (0.50) (0.65)
-------- -------- -------- -------- --------
Net asset value, end of year .............. $ 19.29 $ 20.49 $ 17.80 $ 16.02 $ 13.99
======== ======== ======== ======== ========
Total return (a) .......................... 1.34% 34.27% 17.52% 18.97% (3.61)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) ........ $ 13,055 $ 13,989 $ 17,960 $ 22,926 $ 12,158
Operating expenses including
reimbursement/waiver/custody
earnings credit ...................... 0.83% 0.91% 0.89% 0.81% 0.58%
Operating expenses excluding custody
earnings credit ...................... 0.86% 0.96% -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ...................... 0.91% 1.18% 0.92% 1.02% 1.18%
Net investment income including
reimbursement/waiver/custody
earnings credit ...................... 1.88% 2.51% 3.12% 3.77% 4.02%
Portfolio turnover rate ................... 56% 65% 56% 58% 47%
- ----------
*** The selected per share data was calculated using the weighted average shares outstanding method for the
year.
(a) Total return represents aggregate total return for the year indicated.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 ENDED AUGUST 31, PERIOD
--------------------- ENDED
1998 1997 8/31/96(1)
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ............................ $ 20.47 $ 17.80 $ 17.19
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................... 0.41 0.47*** 0.07
Net realized and unrealized gain on investments ................. 0.01 5.13 0.54
-------- -------- --------
Total from investment operations ................................ 0.42 5.60 0.61
-------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................ (0.39) (0.62) --
Distributions from capital gains ................................ (1.21) (2.31) --
-------- -------- --------
Total distributions ............................................. (1.60) (2.93) --
-------- -------- --------
Net asset value, end of period .................................. $ 19.29 $ 20.47 $ 17.80
======== ======== ========
Total return (a) ................................................ 1.47% 34.26% 3.55%**
======== ======== ========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ............................ $ 46,017 $ 49,334 $ 17,425
Operating expenses including
reimbursement/waiver/custody earnings credit .................. 0.73% 0.91% 0.87%*
Operating expenses excluding custody earnings credit ............ 0.76% 0.96% --
Operating expenses excluding reimbursement/waiver/custody
earnings credit ............................................... 0.81% 1.18% 0.90%*
Net investment income including
reimbursement/waiver/custody earnings credit .................. 1.98% 2.51% 3.14%*
Portfolio turnover rate ......................................... 56% 65% 56%**
- ----------------
* 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.
See Notes to Financial Statements.
</TABLE>
<PAGE>
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........ $ 16.61 $ 18.56 $ 18.55 $ 15.39 $ 16.03
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) .............. (0.18) (0.17)*** (0.19) (0.07) (0.04)
Net realized and unrealized gain/(loss)
on investments ....................... (3.98) 2.38 3.06 3.54 0.90
-------- -------- -------- -------- --------
Total from investment operations .......... (4.16) 2.21 2.87 3.47 0.86
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Distributions in excess of net investment
income ............................... -- -- -- -- (0.07)
Distributions from capital gains .......... (0.67) (4.16) (2.86) (0.31) (1.43)
-------- -------- -------- -------- --------
Total distributions ....................... (0.67) (4.16) (2.86) (0.31) (1.50)
-------- -------- -------- -------- --------
Net asset value, end of year .............. $ 11.78 $ 16.61 $ 18.56 $ 18.55 $ 15.39
======== ======== ======== ======== ========
Total return (a) .......................... (26.02)% 15.16% 17.50% 23.04% 5.20%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) ........ $ 9,659 $ 14,471 $ 18,049 $ 21,882 $ 11,188
Operating expenses including
reimbursement/waiver/custody
earnings credit ...................... 1.26% 1.22% 1.01% 0.95% 0.74%
Operating expenses excluding custody
earnings credit ...................... 1.28% 1.24% -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ...................... 1.43% 1.45% 1.05% 1.16% 1.47%
Net investment income/(loss) including
reimbursement/waiver/custody
earnings credit ...................... (1.05)% (1.05)% (0.78)% (0.54)% (0.40)%
Portfolio turnover rate ................... 74% 105% 87% 111% 46%
- --------------
*** The selected per share data was calculated using the weighted average shares outstanding method for the
year.
(a) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 ENDED AUGUST 31, PERIOD
--------------------- ENDED
1998 1997 8/31/96(1)
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ............................ $ 16.61 $ 18.56 $ 16.66
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment/(loss) ........................................... (0.17) (0.17)*** (0.02)
Net realized and unrealized gain/(loss) on investments .......... (3.98) 2.38 1.92
-------- -------- --------
Total from investment operations ................................ (4.15) 2.21 1.90
-------- -------- --------
LESS DISTRIBUTIONS:
Distributions from capital gains ................................ (0.67) (4.16) --
-------- -------- --------
Total distributions ............................................. (0.67) (4.16) --
-------- -------- --------
Net asset value, end of period .................................. $ 11.79 $ 16.61 $ 18.56
======== ======== ========
Total return (a) ................................................ (25.95)% 15.14% 11.40%**
======== ======== ========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ............................ $ 4,054 $ 4,599 $ 3,577
Operating expenses including reimbursement/waiver/custody
earnings credit ............................................... 1.17% 1.22% 0.98%*
Operating expenses excluding custody earnings credit ............ 1.19% 1.24% --
Operating expenses excluding reimbursement/waiver/custody
earnings credit ............................................... 1.34% 1.45% 1.02%*
Net investment/(loss) including reimbursement/waiver/custody
earnings credit ............................................... (0.96)% (1.05)% (0.75)%*
Portfolio turnover rate ......................................... 74% 105% 87%**
- -----------------
* 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.
See Notes to Financial Statements.
</TABLE>
<PAGE>
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO - (CONTINUED)
FINANCIAL HIGHLIGHTS
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INVESTMENT CLASS SHARES
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........ $ 17.25 $ 15.92 $ 15.41 $ 14.32 $ 14.81
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.36 0.40*** 0.56 0.55 0.45
Net realized and unrealized gain/(loss)
on investments ....................... (1.50) 4.27 0.95 1.06 (0.45)
-------- -------- -------- -------- --------
Total from investment operations .......... (1.14) 4.67 1.51 1.61 0.00
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.37) (0.75) (0.56) (0.45) (0.33)
Distributions from capital gains .......... (1.97) (2.59) (0.44) (0.07) (0.16)
-------- -------- -------- -------- --------
Total distributions ....................... (2.34) (3.34) (1.00) (0.52) (0.49)
-------- -------- -------- -------- --------
Net asset value, end of year .............. $ 13.77 $ 17.25 $ 15.92 $ 15.41 $ 14.32
======== ======== ======== ======== ========
Total return (a) .......................... (8.79)% 33.73% 10.01% 11.84% (0.01)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of year (in 000's) ........ $ 17,602 $ 20,299 $ 27,329 $ 25,978 $ 23,438
Operating expenses including
reimbursement/waiver/custody
earnings credit ...................... 0.83% 0.86% 0.88% 0.69% 0.50%
Operating expenses excluding custody
earnings credit ...................... 0.85% 0.90% -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ...................... 1.00% 1.15% 0.92% 0.91% 1.06%
Net investment income including
reimbursement/waiver/custody
earnings credit ...................... 1.61% 2.58% 3.13% 4.12% 3.64%
Portfolio turnover rate ................... 74% 105% 81% 86% 49%
- ------------
*** The selected per share data was calculated using the weighted average shares outstanding method for the
year. (a) Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 ENDED AUGUST 31, PERIOD
--------------------- ENDED
1998 1997 8/31/96(1)
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ............................ $ 17.23 $ 15.92 $ 15.45
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................... 0.38 0.40*** 0.06
Net realized and unrealized gain/(loss) on investments .......... (1.50) 4.27 0.41
-------- -------- --------
Total from investment operations ................................ (1.12) 4.67 0.47
-------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................ (0.38) (0.77) --
Distributions from capital gains ................................ (1.97) (2.59) --
-------- -------- --------
Total distributions ............................................. (2.35) (3.36) --
-------- -------- --------
Net asset value, end of period .................................. $ 13.76 $ 17.23 $ 15.92
======== ======== ========
Total return (a) ................................................ (8.72)% 33.74% 3.04%**
======== ======== ========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ............................ $ 10,454 $ 26,412 $ 7,335
Operating expenses including reimbursement/waiver/custody
earnings credit ............................................... 0.74% 0.86% 0.85%*
Operating expenses excluding custody earnings credit ............ 0.76% 0.90% --
Operating expenses excluding reimbursement/waiver/custody
earnings credit ............................................... 0.91% 1.15% 0.89%*
Net investment income including reimbursement/waiver/custody
earnings credit .............................................. 1.70% 2.58% 3.16%*
Portfolio turnover rate ......................................... 74% 105% 81%**
- -------------
* 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.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 diversified
investment company, which was incorporated under Maryland law on July 30, 1992.
The Fund operates as a series company and presently offers 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 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 Portfolios' 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 included a fifteen-month expense limitation provision. For the
fifteen-month period commencing July 11, 1996, Wilshire had 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 exceeded
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 would 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
In addition, Wilshire voluntarily has undertaken to waive .15 of 1% of the
average daily net asset otherwise payable under the Advisory Agreement on the
Small Company Growth and Small Company Value Portfolios. Prior to December 31,
1997, Wilshire voluntarily waived .15 of 1% of the average daily net assets for
the Large Company Growth and Large Company Value Portfolios. The voluntary
waiver may be terminated at any time by Wilshire by notice to the Directors of
the Fund.
For the year ended August 31, 1998, Wilshire voluntarily waived fees as follows:
FUND
----
Large Company Growth Portfolio .......... $ 59,495
Large Company Value Portfolio ........... 34,117
Small Company Growth Portfolio .......... 30,253
Small Company Value Portfolio ........... 73,626
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 for each
Portfolio and $2,000 for each additional class.
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. In addition, each Portfolio incurred certain overdraft
charges. For the year ended August 31, 1998, the charges were as follows: Large
Company Growth, $40,675; Large Company Value, $1,544; Small Company Growth,
$6,085; Small Company Value, $24,606. These charges are included with Custodian
fees 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.
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. For the year ended August 31,
1998, the distribution and service fees expenses incurred for Large Company
Growth Portfolio, Large Company Value Portfolio, Small Company Growth Portfolio
and Small Company Value Portfolio were .11%, .10%, .09% and .09% of average net
assets, respectively. Prior to June 3, 1997, the Plan permitted the
reimbursement of service fees only.
4. SECURITIES TRANSACTIONS.
For the year ended August 31, 1998 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 ....... $75,839,730 $90,221,130
Large Company Value Portfolio ........ 36,450,600 39,315,733
Small Company Growth Portfolio ....... 14,612,082 15,359,388
Small Company Value Portfolio ........ 35,230,709 51,363,711
The aggregate gross unrealized appreciation and depreciation as computed on a
federal income tax basis, at August 31, 1998, for each Fund is as follows:
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
---- ------------ ------------
Large Company Growth Portfolio ....... $34,176,359 $ 5,142,674
Large Company Value Portfolio ........ 9,136,068 4,666,040
Small Company Growth Portfolio ....... 1,302,014 4,305,232
Small Company Value Portfolio ........ 3,693,538 3,943,068
5. SIGNIFICANT SHAREHOLDER ACTIVITY.
At August 31, 1998, a significant shareholder owned approximately the
following percentage of total outstanding Institutional Class shares of each of
the Portfolios:
FUND
----
Large Company Growth Portfolio ........... 29%
Large Company Value Portfolio ............ 33%
Small Company Growth Portfolio ........... 100%
Small Company Value Portfolio ............ 100%
<PAGE>
WILSHIRE TARGET FUNDS, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
Wilshire Target Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities,
including the statements of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Wilshire Target
Funds, Inc. (comprised of Large Company Growth Portfolio, Large Company Value
Portfolio, Small Company Growth Portfolio and Small Company Value Portfolio)
(the "Funds") at August 31, 1998, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
preform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1998 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 9, 1998
<PAGE>
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,
1998 were as follows:
FUND TOTAL 20% 28%
---- ---------- ---------- ----------
Large Company Growth Portfolio ....... $1,563,853 $ 407,758 $1,156,095
Large Company Value Portfolio ........ 1,927,906 870,536 1,057,370
Small Company Growth Portfolio ....... 537,390 457,257 080,133
Small Company Value Portfolio ........ 2,893,546 1,934,548 958,998
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 .......... 58.48%
Large Company Value Portfolio ........... 55.96%
Small Company Growth Portfolio .......... 10.54%
Small Company Value Portfolio ........... 70.49%
<PAGE>
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<PAGE>
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<PAGE>
[Logo]
WILSHIRE
- ------------------
TARGET FUNDS, INC.
- ------------------
P.O. Box 5170
Westborough, Massachusetts 01581-5170
(Form Number WIL-010(10/97))
