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[Logo]
WILSHIRE
TARGET FUNDS, INC.
SEMI-ANNUAL REPORT
LARGE COMPANY GROWTH PORTFOLIO
LARGE COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
February 28, 1998
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www.wilfunds.com
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WILSHIRE TARGET FUNDS, INC.
Shareholder Letter .................................................... 1
Large Company Growth Portfolio:
Fund Commentary .................................................. 4
Large Company Value Portfolio:
Fund Commentary .................................................. 6
Small Company Growth Portfolio:
Fund Commentary .................................................. 8
Small Company Value Portfolio:
Fund Commentary .................................................. 10
Statements of Investments:
Large Company Growth Portfolio ................................... 12
Large Company Value Portfolio .................................... 21
Small Company Growth Portfolio ................................... 28
Small Company Value Portfolio .................................... 36
Statements of Assets and Liabilities .................................. 44
Statements of Operations .............................................. 46
Statements of Changes in Net Assets ................................... 47
Financial Highlights:
Large Company Growth Portfolio ................................... 51
Large Company Value Portfolio .................................... 53
Small Company Growth Portfolio ................................... 55
Small Company Value Portfolio .................................... 57
Notes to Financial Statements ......................................... 59
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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.
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DEAR SHAREHOLDER,
We are pleased to report to all shareholders of the Wilshire Target Funds, Inc.
(the "Funds") that it has been a good period to be invested in equities
generally. The equity markets have continued to generate robust returns for
investors. Since our management approach entails maintaining a fully invested
posture at all times, investors of each Portfolio of the Funds have received
full benefit of the market advance.
We have been commenting for some time that it is very difficult to predict the
direction of the market and it is our belief that those who attempt to are
delving into an activity for which there is little evidence of success.
Investors would do better by focusing more on how they are getting market
exposure and less on trying to determine when to get in or out. Our goal with
the Wilshire Target Fund Portfolios is to deliver the best focused exposures
possible and cater specifically to the long term investor who desires to target
specific style objectives.
The four distinct segments of the equity market are represented by the Large
Company Growth, Large Company Value, Small Company Growth and Small Company
Value Portfolios (the "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. This report covers the six month period ended February 28,
1998 for both classes of shares of the Portfolios - Investment Class and
Institutional Class.
THE STYLE APPROACH
Investors either explicitly or implicitly make style decisions every time they
select a mutual fund. Imbedded in the fund description is information that helps
to separate that product from all others.
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 semi-annual period ended February 28, 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, advanced
16.15% for the six months ended February 28, 1998. Large companies, as measured
by the Standard & Poors 500 Composite Stock Price Index (the "S&P"), rose 17.57%
and small companies, as measured by the Wilshire Next 1750 Index, climbed 10.85%
during this time period.
[Graphic Omitted]
WILSHIRE WILSHIRE
5000 S&P 500 NEXT 1750
INDEX INDEX INDEX
U.S. Equity Securities 16.15%
Large Companies 17.57%
Small Companies 10.85%
NEW FEATURE
While we would like to see our shareholders use the Portfolios for all their
investment needs, we realize that many of you will allocate some of your
portfolio to other investments as well. From time to time investors have changes
in their investment needs. With this in mind, we have added a money market fund
to the choices available to shareholders. This fund can be used as a place to
wait out a volatile period in the market or serve as a "parking place" between
changes in your investment objectives. For more information and a prospectus on
this new feature please call the shareholder service number on your statement.
SUMMARY
Market history tells us it is unrealistic to expect bull markets of this
duration and this magnitude. However, there is plenty of evidence to support the
fundamental strength that is fueling this market advance. Our economy continues
to generate slow but steady growth and when coupled with low inflation and
interest rates, valuations, while not undervalued, are also not exorbitant. It
is anyone's guess as to how long this favorable scenario will continue to exist
but until something happens to disrupt it, investors may continue to reap the
rewards.
Sincerely,
/s/ Thomas D. Stevens
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Thomas D. Stevens
President and Chairman of the Board
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LARGE COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
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The Large Company Growth Portfolio continued to perform very well relative to
other funds in the same style category as well as other style categories. The
performance is largely attributable to the Portfolio's structured and
disciplined investment philosophy. The Portfolio's consistent focus on the large
growth style category has paid off handsomely as we have seen the category as a
whole outperform the broader market.
Some of the sectors that helped drive performance were Consumer Non-Durables,
Capital Goods and Finance. Consumer Non-Durables companies like Merck, Coca
Cola, Johnson & Johnson, Procter & Gamble and Wal Mart Stores all made
significant contributions to the portfolio. General Electric, a Capital Goods
company and a long time component of the portfolio, had the largest weight in
the entire portfolio and a total return for the period of 25%. The Finance
sector is not typically thought of as a growth category; however, the current
economic environment has created some very high powered growth companies in this
sector. Companies like American International Group (Insurance) and Norwest
Corp. (Banking) have had terrific performance over the last year or so.
PORTFOLIO INFORMATION(1)
(As of February 28, 1998)
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AVERAGE 5-YEAR SALES GROWTH .............. 20.1%
AVERAGE 5-YEAR EARNINGS GROWTH ........... 18.1%
AVERAGE 5-YEAR RETURN ON EQUITY .......... 25.5%
AVERAGE MARKET CAPITALIZATION ............ $80.7 BILLION
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(1) All averages are dollar-weighted averages. The 5-year numbers are calculated
based on the results for the 5-year period ended February 28, 1998 for those
securities in the Portfolio's holdings as of February 28, 1998 whose issuers
have been in existence for at least 5 years.
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LARGE COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 19.27%
ONE YEAR ENDED 2/28/98 ........................................... 37.89%
FIVE YEARS ENDED 2/28/98 ......................................... 21.50%
INCEPTION (9/30/92) THROUGH 2/28/98 .............................. 20.62%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 19.39%
ONE YEAR ENDED 2/28/98 ........................................... 38.10%
INCEPTION (7/15/96) THROUGH 2/28/98 .............................. 42.73%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the six months ended
February 28, 1998, fees and expenses totaling 0.11% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING**
(As of February 28, 1998)
Consumer Durables 1.0%
Energy 1.1%
Transportation 1.2%
Utilities 2.4%
Materials & Services 4.6%
Capital Goods 9.8%
Finance 10.8%
Consumer Non-Durables 42.1%
Technology 27.0%
**Based on percent of Portfolio's total market value
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LARGE COMPANY VALUE PORTFOLIO
FUND COMMENTARY
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The Large Company Value Portfolio focuses on stocks which, on a relative basis,
are attractively priced based on their earnings, book value and dividend
payments. As a result, the Portfolio holds a large portion of securities in the
Energy, Finance and Utility sectors. In fact, the average combined weight of
those sectors in the Portfolio was in excess of 70% of the market value for the
period. With the exception of Energy, holdings in those sectors did very well.
The holdings in Finance were up 21% and Utilities were up 23%. Some of the
better performing, more heavily weighted stocks in the Portfolio were
Bankamerica, Bank of New York, Fleet Financial Group, Bell Atlantic and U.S.
West. Despite the solid returns by the Finance and Utilities sectors, other
holdings in the Portfolio turned in somewhat lackluster performance. Value
oriented stocks in the Materials & Services, Transportation and Consumer
Non-Durables sectors remained undervalued by the market relative to other
stocks. When the market begins to look for good deals in these sectors the
Portfolio will be nicely positioned to take advantage of the increased demand
for these stocks.
PORTFOLIO INFORMATION(1)
(As of February 28, 1998)
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DIVIDEND YIELD 2 .............. 2.6%
AVERAGE PRICE/BOOK RATIO ...... 3.2%
AVERAGE PRICE/EARNINGS RATIO .. 16.8%
AVERAGE MARKET CAPITALIZATION . $30.8 BILLION
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(1) All averages are dollar-weighted averages. The average price/book 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 SECyield of the portfolio itself.
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LARGE COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 14.43%
ONE YEAR ENDED 2/28/98 ........................................... 28.33%
FIVE YEARS ENDED 2/28/98 ......................................... 17.79%
INCEPTION (9/30/92) THROUGH 2/28/98 .............................. 18.83%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 14.52%
ONE YEAR ENDED 2/28/98 ........................................... 28.31%
INCEPTION (7/15/96) THROUGH 2/28/98 .............................. 33.10%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the six months ended
February 28, 1998, fees and expenses totaling 0.13% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING**
(As of February 28, 1998)
Transportation 2.6%
Capital Goods 2.9%
Consumer Non-Durables 4.7%
Materials & Services 5.9%
Consumer Durables 8.5%
Technology 9.3%
Energy 12.9%
Finance 36.0%
Utilities 17.2%
** Based on percent of Portfolio's total market value
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SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY
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The Small Company Growth Portfolio's sector allocation looked very much like a
typical growth portfolio for the past six months. Close to 70% of its holdings
were in the classic growth sectors -- Consumer Non-Durables, Materials &
Services and Technology. The Technology sector was affected by unsettled
international markets, primarily Southeast Asia, as earnings estimates began to
fall short of expectations. We believe the outlook is much brighter today for
companies exposed to that region as most companies took quick action to put the
crisis behind them by making provisions for losses and taking write downs.
As with the Large Company Growth Portfolio, there are significant holdings in
the Finance sector (9%). CMAC Investment Corp.(Insurance) and Legg Mason
(Investment Services), both large holdings in that sector, performed very well
for the period. Other holdings that performed well over the period were Oakwood
Homes (Mobile Homes), Lennar Corp. (Construction Services), Comair Corp and
Alaska Air Group (Airlines).
PORTFOLIO INFORMATION(1)
(As of February 28, 1998)
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AVERAGE 5-YEAR SALES GROWTH ...... 26.8%
AVERAGE 5-YEAR EARNINGS GROWTH ... 16.4%
AVERAGE 5-YEAR RETURN ON EQUITY .. 15.8%
AVERAGE MARKET CAPITALIZATION .... $1.2 BILLION
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(1) All averages are dollar-weighted averages. The 5-year numbers are calculated
based on the results for the 5-year period ended February 28, 1998 for those
securities in the Portfolio's holdings as of February 28, 1998 whose issuers
have been in existence for at least 5 years.
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SMALL COMPANY GROWTH PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 8.09%
ONE YEAR ENDED 2/28/98 ........................................... 29.63%
FIVE YEARS ENDED 2/28/98 ......................................... 16.21%
INCEPTION (10/1/92) THROUGH 2/28/98 .............................. 17.84%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 8.09%
ONE YEAR ENDED 2/28/98 ........................................... 29.53%
INCEPTION (7/15/96) THROUGH 2/28/98 .............................. 22.25%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the six months ended
February 28, 1998, fees and expenses totaling 0.18% per share were waived or
reimbursed. Without such waivers and reimbursements, total returns would have
been lower.
PORTFOLIO SECTOR WEIGHTING**
(As of February 28, 1998)
Utilities 0.2%
Energy 3.0%
Capital Goods 6.4%
Transportation 6.5%
Consumer Durables 6.5%
Finance 8.9%
Consumer Non-Durables 17.6%
Technology 30.7%
Materials & Services 20.2%
** Based on percent of Portfolio's total market value
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SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY
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The Small Company Value Portfolio continued to invest in sectors clearly
associated with a value orientation. Holdings in the classic value sectors,
Finance and Utilities, really drove performance for the period. These sectors
typically include companies which are undervalued relative to their earnings and
book value. They also have high dividend yield, which means simply that their
price is lower relative to the size of the dividend.
Demand for value stocks is driven by two types of investors - those investors
seeking higher 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. We
believe that despite the hiccup in Asia, most investors don't see the big growth
stocks as overvalued and are not looking to sell and buy better valued stocks.
Despite the lack of investor interest in value stocks of late the Portfolio has
done well by its value orientation. Some of the better performing stocks were
Universal Corp (Tobacco), CCB Financial Corp (Regional Bank), Safety Kleen
(Business Services), Airborne Freight and Rochester Gas & Electric.
PORTFOLIO INFORMATION(1)
(As of February 28, 1998)
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DIVIDEND YIELD(2) ............. 2.3%
AVERAGE PRICE/BOOK RATIO ...... 2.4%
AVERAGE PRICE/EARNINGS RATIO .. 18.7%
AVERAGE MARKET CAPITALIZATION . $970 BILLION
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(1) All averages are dollar-weighted averages. The average price/book 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 SECyield of the portfolio itself.
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SMALL COMPANY VALUE PORTFOLIO
FUND COMMENTARY -- (CONTINUED)
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 13.00%
ONE YEAR ENDED 2/28/98 ........................................... 31.98%
FIVE YEARS ENDED 2/28/98 ......................................... 14.40%
INCEPTION (9/30/92) THROUGH 2/28/98 .............................. 15.92%
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
SIX MONTHS ENDED 2/28/98 ......................................... 13.04%
ONE YEAR ENDED 2/28/98 ........................................... 31.87%
INCEPTION (7/15/96) THROUGH 2/28/98 .............................. 31.33%
* Assumes reinvestment of all dividends and distributions. During the periods,
certain fees and expenses were waived or reimbursed. For the six months ended
February 28, 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 February 28, 1998)
Technology 2.8%
Energy 3.4%
Transportation 4.4%
Consumer Durables 5.7%
Capital Goods 8.9%
Utilities 15.2%
Consumer Non-Durables 15.9%
Finance 25.6%
Materials & Services 18.1%
** Based on percent of Portfolio's total market value
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WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO February 28, 1998
STATEMENT OF INVESTMENTS (Unaudited)
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VALUE
SHARES (NOTE 1)
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COMMON STOCKS - 100.0%
AEROSPACE & DEFENSE - 0.4%
2,100 Goodrich (B.F.) Company $ 104,081
6,500 Textron, Inc. 487,094
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591,175
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APPAREL - 0.6%
2,000 Jones Apparel Group* 110,000
11,300 NIKE, Inc., Class B 495,788
2,200 Reebok International Limited* 68,613
2,400 Unifi, Inc. 88,200
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762,601
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BANKS - 3.8%
15,000 Bank of New York Company, Inc. .............. 878,438
4,800 Dime Bancorp, Inc. .......................... 146,400
6,150 Fifth Third Bancorp ......................... 485,850
1,600 First Commerce Corporation .................. 126,400
300 First Empire State Corporation .............. 141,600
4,400 Northern Trust Corporation .................. 334,675
29,400 Norwest Corporation ......................... 1,203,563
6,400 State Street ................................ 395,600
6,850 Synovus Financial Corporation ............... 240,606
9,700 US Bancorp .................................. 1,116,106
2,500 Zions Bancorporation ........................ 107,500
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5,176,738
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BUSINESS MACHINES - 13.5%
4,400 Adaptec, Inc.* .............................. 116,325
4,100 BMC Software, Inc.*.......................... 313,650
6,100 Cabletron Systems, Inc.* .................... 94,550
3,000 Ceridian Corporation* ....................... 139,688
39,600 Cisco Systems, Inc.* ........................ 2,608,650
59,300 Compaq Computer Corporation ................. 1,901,306
13,100 Dell Computer Corporation* .................. 1,832,363
2,650 Diebold, Inc. ............................... 136,144
6,000 Gateway 2000, Inc.* ......................... 264,000
2,500 Keane, Inc.* ................................ 116,250
10,100 Iomega Corporation*.......................... 92,163
2,800 LeInternational Group, Class A* ............. 119,700
94,400 Microsoft Corporation* ...................... 8,000,400
38,350 Oracle Systems Corporation* ................. 944,369
11,400 Pitney Bowes, Inc. .......................... 534,375
9,500 Seagate Technology, Inc.* ................... 230,969
14,500 Sun Microsystems, Inc.* ..................... 690,563
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18,135,465
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BUSINESS SERVICES - 3.0%
3,800 AccuStaff, Inc.* ............................ 107,350
11,600 Automatic Data Processing, Inc.* ............ 708,325
16,025 Cendant Corporation ......................... 600,938
3,800 Cintas Corporation* ......................... 161,500
3,100 Computer Sciences Corporation ............... 324,531
5,000 Ecolab, Inc. ................................ 144,063
5,900 Equifax, Inc. ............................... 212,031
4,850 Interpublic Group of Companies, Inc. ........ 264,325
3,200 Manpower, Inc. .............................. 135,000
2,700 Networks Associates, Inc.* .................. 174,488
6,300 Omnicom Group, Inc. ......................... 288,225
5,100 Parametric Technology Corporation* .......... 308,869
4,250 Paychex, Inc. ............................... 219,406
3,550 Robert Half International, Inc.* ............ 160,638
3,300 SunGard Data Systems, Inc.* ................. 112,819
5,000 Total System Services, Inc. ................. 131,250
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4,053,758
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CHEMICALS - 0.6%
4,400 Air Products & Chemicals, Inc. .............. 369,325
2,700 Cabot Corporation ........................... 95,175
2,300 Great Lakes Chemical Corporation ............ 111,838
5,200 Morton International, Inc. .................. 171,925
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748,263
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CONSTRUCTION - 0.4%
3,000 Case Corporation ............................ 195,188
6,700 Sherwin-Williams Company .................... 224,031
1,400 Vulcan Materials Company .................... 140,875
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560,094
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CONSUMER DURABLES - 1.3%
4,100 Clorox Company .............................. 359,775
11,700 Colgate-Palmolive Company ................... 949,894
3,700 Leggett & Platt, Inc. ....................... 185,694
6,200 Newell Company, Inc. ........................ 284,425
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1,779,788
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CONTAINERS - 0.2%
1,700 Sealed Air Corporation* ..................... 114,431
3,700 Sonoco Products Company ..................... 143,144
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257,575
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COSMETICS - 5.1%
22,126 Gillette Company ............................ 2,386,842
53,200 Procter & Gamble Company .................... 4,518,675
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6,905,517
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DRUGS & MEDICINE - 15.4%
30,300 Abbott Laboratories ......................... 2,266,819
2,500 Allergan, Inc. .............................. 87,500
10,400 Amgen, Inc.* ................................ 552,500
4,900 Becton, Dickinson & Company ................. 311,763
4,300 Biomet, Inc. ................................ 128,194
4,350 Cardinal Health, Inc. ....................... 356,156
4,660 Foundation Health Corporation* .............. 129,024
5,900 Guidant Corporation ......................... 430,331
6,400 Health Management Associates, Inc., Class A* 178,000
2,700 Hillenbrand Industries, Inc. ................ 151,706
52,400 Johnson & Johnson ........................... 3,956,200
2,400 Manor Care, Inc. ............................ 90,150
18,500 Medtronic, Inc. ............................. 982,813
47,600 Merck & Company, Inc. ....................... 6,071,975
4,700 Mylan Laboratories, Inc. .................... 95,763
2,500 PhyCor, Inc.* ............................... 64,297
2,800 Quintiles Transnational Corporation* ........ 136,850
28,900 Schering-Plough Corporation ................. 2,198,206
3,700 Stryker Corporation ......................... 151,469
3,800 Sybron International Corporation* ........... 103,788
7,400 United Healthcare Corporation ............... 449,088
10,700 Warner-Lambert Company ...................... 1,564,875
3,400 Watson Pharmaceuticals, Inc.* ............... 121,975
2,800 Wellpoint Health Networks, Inc.* ............ 163,625
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20,743,067
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ELECTRONICS - 11.1%
5,100 ADC Telecommunications, Inc.* ............... 131,644
3,400 Altera Corporation* ......................... 146,625
3,700 American Power Conversion Corporation* ...... 107,300
6,200 Analog Devices, Inc.* ....................... 199,950
3,475 Andrew Corporation* ......................... 95,997
14,300 Applied Materials, Inc.* .................... 526,419
3,800 Arrow Electronics, Inc.* .................... 126,588
7,900 Cadence Design Systems, Inc.* ............... 276,006
2,000 Electronics For Imaging Company* ............ 44,125
19,300 EMC Corporation* ............................ 738,225
41,000 Hewlett-Packard Company ..................... 2,747,000
64,300 Intel Corporation ........................... 5,766,906
3,200 KLA-Tencor Corporation* ..................... 147,700
3,000 Linear Technology Corporation ............... 227,250
5,000 Maxim Integrated Products, Inc.* ............ 201,875
6,100 Molex, Inc. ................................. 184,525
23,500 Motorola, Inc. .............................. 1,310,125
3,400 Raychem Corporation ......................... 147,688
2,300 SCI Systems, Inc.* .......................... 103,500
2,400 Synopsys, Inc.* ............................. 83,850
7,100 Tellabs, Inc.* .............................. 428,663
3,200 Teradyne, Inc.* ............................. 151,000
15,100 Texas Instruments, Inc. ..................... 873,913
2,794 Xilinx, Inc.* ............................... 122,587
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14,889,461
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ENERGY - RAW MATERIALS - 0.9%
12,000 Enron Oil & Gas Company ..................... 564,000
5,500 ENSCO International, Inc. ................... 160,188
1,600 Smith International, Inc.* .................. 85,200
4,000 Transocean Offshore, Inc. ................... 172,000
2,200 Western Atlas, Inc.* ........................ 167,063
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1,148,451
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FINANCE - 3.1%
2,700 Capital One Financial Corporation ........... 181,406
4,200 Countrywide Credit Industries, Inc. ......... 186,638
3,650 Edwards (A.G.), Inc. ........................ 153,528
2,100 FINOVA Group, Inc. .......................... 115,500
9,900 Franklin Resources, Inc. .................... 504,900
5,300 Green Tree Financial Corporation ............ 121,569
4,300 Household International, Inc. ............... 558,463
4,200 Kansas City Southern Industries, Inc. ....... 156,188
19,625 MBNA Corporation ............................ 702,820
13,100 Merrill Lynch & Company, Inc. ............... 937,469
2,300 Price (T. Rowe) Associates, Inc. ............ 152,663
10,350 Schwab (Charles) Corporation ................ 390,713
2,700 United Asset Management Corporation ......... 71,719
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4,233,576
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FOOD & AGRICULTURE - 7.0%
18,000 Campbell Soup Company ....................... 1,045,125
97,700 Coca-Cola Company ........................... 6,710,769
5,700 Hershey Foods Corporation ................... 380,119
2,650 Pioneer Hi-Bred International, Inc. ......... 274,938
5,400 Quaker Oats Company ......................... 290,925
6,800 Sysco Corporation ........................... 320,025
3,900 Whitman Corporation ......................... 69,469
4,600 Wrigley (WM.) Jr. Company ................... 351,325
------------
9,442,695
------------
INSURANCE - 4.0%
5,437 AFLAC, Inc. ................................. 334,036
27,612 American International Group, Inc. .......... 3,318,617
7,400 Conseco, Inc. ............................... 347,338
4,500 MGIC Investment Corporation ................. 331,594
3,000 Oxford Health Plans, Inc.* .................. 51,563
2,900 Progressive Corporation of Ohio ............. 336,038
3,500 ReliaStar Financial Corporation ............. 166,469
1,400 The PMI Group, Inc. ......................... 101,850
7,650 SunAmerica, Inc. ............................ 346,641
-----------
5,334,146
------------
MEDIA - 1.4%
2,400 Belo (A.H.) Corporation, Series A ........... 131,400
3,900 Clear Channel Communications, Inc.* ......... 353,438
11,200 Gannet Company, Inc. ........................ 723,100
3,400 Knight-Ridder, Inc. ......................... 191,250
3,900 McGraw-Hill Companies, Inc. ................. 294,938
500 Washington Post Company, Class B ............ 246,750
------------
1,940,876
------------
MOTOR VEHICLES - 0.7%
3,100 Eaton Corporation ........................... 297,794
3,900 General Motors Corporation, Class H ......... 161,606
5,900 Harley-Davidson, Inc. ....................... 171,100
2,600 Lear Corporation* ........................... 137,475
3,100 PACCAR, Inc. ................................ 196,269
------------
964,244
------------
NONDURABLE & ENTERTAINMENT - 1.8%
4,900 Hasbro, Inc. ................................ 177,931
4,500 International Game Technology ............... 109,125
11,325 Mattel, Inc. ................................ 479,189
27,000 McDonald's Corporation ...................... 1,478,250
3,000 Starbucks Corporation* ...................... 118,688
5,100 Wendy's International, Inc. ................. 110,606
------------
2,473,789
------------
PRODUCER GOODS - 11.1%
2,400 AGCO Corporation ............................ 67,500
22,200 AlliedSignal, Inc. .......................... 944,888
1,700 Avnet, Inc. ................................. 108,375
14,800 Caterpillar, Inc. ........................... 808,450
1,800 Crane Company ............................... 88,200
8,700 Dover Corporation ........................... 336,038
128,900 General Electric Company .................... 10,021,975
6,700 Global Marine, Inc.* ........................ 155,356
2,000 Grainger (W.W.), Inc. ....................... 193,625
9,800 Illinois Tool Works, Inc. ................... 587,388
6,500 Ingersoll-Rand Company ...................... 309,563
3,300 Johnson Controls, Inc. ...................... 183,356
4,400 Parker-Hannifin Corporation ................. 205,150
2,300 Snap-On, Inc. ............................... 97,750
4,400 Solectron Corporation* ...................... 212,850
5,800 Thermo Electron Corporation* ................ 237,800
4,672 Thermo Instrument Systems, Inc.* ............ 164,104
2,400 Tidewater, Inc. ............................. 106,800
2,100 Weatherford Enterra, Inc.* .................. 72,713
------------
14,901,881
------------
RETAIL - 7.3%
9,600 Albertsons, Inc. ............................ 449,400
5,900 AutoZone, Inc* .............................. 178,475
2,700 Bed Bath & Beyond, Inc.* .................... 116,606
3,800 Circuit City Stores, Inc. ................... 146,775
3,500 CompUSA, Inc.* .............................. 122,500
3,218 Consolidated Stores Corporation* ............ 132,340
4,453 Dollar General Corporation .................. 205,395
1,500 Fastenal Company ............................ 65,813
15,750 Gap, Inc. ................................... 703,828
3,100 General Nutrition Companies, Inc.* .......... 123,225
28,749 Home Depot, Inc. ............................ 1,834,546
3,100 Kohl's Corporation* ......................... 248,581
6,800 Lowe's Companies, Inc. ...................... 397,375
6,100 Office Depot, Inc.* ......................... 167,750
2,400 Pep Boys-Manny, Moe, & Jack ................. 61,500
19,300 Walgreen Company ............................ 708,069
88,800 Wal-Mart Stores, Inc. ....................... 4,112,550
------------
9,774,728
------------
SHIPPING - 0.3%
4,600 FDX Corporation* ............................ 292,963
2,350 Illinois Central Corporation ................ 91,209
1,900 Wisconsin Central Transportation Corporation 51,538
------------
435,710
------------
STEEL - 0.3%
3,400 Nucor Corporation ........................... 175,100
2,400 Timken Company .............................. 77,400
3,300 USX-U.S. Steel Group ........................ 115,913
------------
368,413
------------
TELEPHONE - 2.0%
2,400 Century Telephone Enterprises ............... 146,400
3,000 LCI International, Inc.* .................... 99,000
27,200 MCI Communications Corporation .............. 1,300,500
17,000 Sprint Corporation .......................... 1,122,000
------------
2,667,900
------------
TIRE & RUBBER - 0.1%
2,300 Danaher Corporation ........................ 165,456
------------
TRANSPORTATION - AIR - 0.3%
8,500 Southwest Airlines Company .................. 243,844
2,400 UAL Corporation* ............................ 204,300
------------
448,144
------------
TRAVEL & RECREATION - 3.9%
3,800 Brunswick Corporation ....................... 120,650
6,200 Burlington Northern Santa Fe Corporation .... 617,675
2,800 Callaway Golf Company ....................... 90,300
11,700 Carnival Corporation ........................ 688,838
26,600 Disney (Walt) Company ....................... 2,977,512
3,900 Harrah's Entertainment, Inc.* ............... 82,144
5,100 Marriott International, Inc. ................ 386,325
2,200 MGM Grand, Inc.* ............................ 79,475
7,000 Mirage Resorts, Inc.* ....................... 160,125
1,850 Promus Hotel Corporation* ................... 89,263
------------
5,292,307
------------
UTILITIES - 0.4%
6,800 AES Corporation* ............................ 299,200
3,100 CalEnergy Company, Inc.* .................... 83,119
3,000 MCN Corporation ............................. 110,437
------------
492,756
------------
TOTAL COMMON STOCKS (Cost $90,580,945) 134,688,574
------------
TOTAL INVESTMENTS (Cost $90,580,945**) 100.0% 134,688,574
OTHER ASSETS AND LIABILITIES (Net) 0.0%*** 57,590
------ ------------
NET ASSETS 100.0% $134,746,164
===== ============
- -------------------------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $90,580,945.
*** Amount represents less than 0.1%
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO February 28, 1998
STATEMENT OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- ------ --------
COMMON STOCKS - 99.6%
AEROSPACE & DEFENSE - 2.4%
1,800 Goodrich (B.F.) Company ..................... $ 89,213
2,200 General Dynamics Corporation ................ 190,850
6,700 Lockheed Martin Corporation ................. 781,806
5,700 Textron, Inc. ............................... 427,144
-----------
1,489,013
-----------
APPAREL - 0.3%
4,300 V.F. Corporation ............................ 205,056
-----------
BANKS - 22.5%
2,750 AmSouth Bancorporation ...................... 154,516
21,879 Banc One Corporation ........................ 1,236,164
24,100 BankAmerica Corporation ..................... 1,867,750
5,107 BankBoston Corporation ...................... 509,104
3,500 Bankers Trust New York Corporation .......... 413,875
4,800 BB&T Corporation ............................ 297,900
2,195 Charter One Financial ....................... 133,003
14,592 Chase Manhattan Corporation ................. 1,810,320
3,700 Comerica, Inc. .............................. 373,006
3,800 Crestar Financial Corporation ............... 209,950
3,100 First of America Bank Corporation ........... 240,831
2,000 First American Corporation .................. 95,750
10,187 First Chicago NBD ........................... 837,244
1,750 First Virginia Banks, Inc. .................. 88,594
8,600 Fleet Financial Group, Inc. ................. 677,788
1,500 GreenPoint Financial ........................ 111,375
6,530 Huntington Bancshares, Inc. ................. 234,264
7,500 National City Corporation ................... 489,375
24,500 NationsBank Corporation ..................... 1,678,250
3,258 Old Kent Financial Corporation .............. 125,637
10,500 PNC Bank .................................... 582,750
1,900 Republic New York Corporation ............... 229,900
5,250 SouthTrust Corporation ...................... 214,594
6,000 Summit Bankcorp ............................. 298,125
5,800 Wachovia Corporation ........................ 461,100
8,700 Washington Mutual, Inc. ..................... 583,988
-----------
13,955,153
-----------
CHEMICALS - 3.3%
3,800 Air Products & Chemicals, Inc. .............. 318,963
3,300 ARCO Chemical Company ....................... 156,131
2,300 Cabot Corporation ........................... 81,075
7,900 Dow Chemical Company ........................ 722,850
2,700 Eastman Chemical Company .................... 176,850
4,900 Engelhard Corporation ....................... 88,813
1,900 Lubrizol Corporation ........................ 73,269
4,500 Morton International, Inc. .................. 148,781
1,700 Olin Corporation ............................ 77,881
4,200 Union Carbide Corporation ................... 195,038
-----------
2,039,651
-----------
CONSTRUCTION - 0.4%
1,400 Armstrong World Industries, Inc. ............ 109,900
1,200 Vulcan Materials Company .................... 120,750
-----------
230,650
-----------
CONSUMER SERVICES - 0.3%
5,000 Donnelley (R.R.) & Sons Company ............. 198,125
-----------
DOMESTIC OIL - 0.5%
2,500 Ashland, Inc. ............................... 139,219
1,700 Kerr-McGee Corporation ...................... 114,963
1,500 Murphy Oil Corporation ...................... 74,906
-----------
329,088
-----------
DRUGS & MEDICINE - 0.1%
2,200 Allergan, Inc. .............................. 77,000
-----------
ELECTRONICS - 1.4%
3,500 Ameren Corporation .......................... 134,531
3,200 Black & Decker Corporation .................. 161,200
1,700 General Signal Corporation .................. 69,063
4,100 GPU, Inc. ................................... 164,769
2,700 Harris Corporation .......................... 136,856
1,500 National Services Industries, Inc. .......... 83,156
1,800 Thomas & Betts Corporation .................. 102,038
-----------
851,613
-----------
ENERGY - 1.2%
6,300 Dominion Resources, Inc. .................... 251,213
5,450 DPL, Inc. ................................... 99,122
2,600 DQE ......................................... 86,288
4,900 DTE Energy Company .......................... 180,075
7,600 PECO Energy Company ......................... 150,100
-----------
766,798
-----------
ENVIRONMENTAL SERVICES - 0.5%
7,400 USA Waste Services, Inc.* ................... 308,025
-----------
FINANCE - 8.2%
3,400 Ahmanson (H.F.) & Company ................... 212,288
15,000 Allstate Corporation ........................ 1,398,750
4,028 Bear Stearns Company, Inc. .................. 187,806
1,900 Beneficial Corporation ...................... 224,200
3,200 Edwards (A.G.), Inc. ........................ 134,600
1,400 First Commerce Corporation .................. 110,600
5,913 First Securities Corporation ................ 137,096
21,450 First Union Corporation ..................... 1,130,147
4,900 Firstar Corporation ......................... 204,881
7,528 KeyCorp ..................................... 527,431
3,100 MBIA, Inc. .................................. 226,881
2,700 Pacific Century Financial ................... 58,219
4,700 Paine Webber Group, Inc. .................... 197,400
4,600 Regions Financial Corporation ............... 182,850
3,100 TCF Financial Corporation ................... 102,494
2,300 United Asset Management Corporation ......... 61,094
-----------
5,096,737
-----------
FOOD & AGRICULTURE - 0.4%
2,000 Giant Food, Inc., Class A ................... 72,625
2,600 Hormel Foods Corporation .................... 96,525
2,000 Supervalu, Inc. ............................. 95,250
-----------
264,400
-----------
INSURANCE - 5.1%
2,000 American Financial Group, Inc. .............. 80,875
6,000 Chubb Corporation ........................... 478,875
2,600 CIGNA Corporation ........................... 496,600
1,900 Cincinnati Financial Corporation ............ 256,500
2,500 Jefferson- Pilot Corporation ................ 209,688
3,500 Lincoln National Corporation ................ 293,125
2,900 Old Republic International Corporation ...... 122,344
3,100 ReliaStar Financial Corporation ............. 147,444
4,700 SAFECO Corporation .......................... 246,456
2,900 St Paul Companies, Inc. ..................... 257,013
4,700 Torchmark Corporation ....................... 218,844
2,200 Transamerica Corporation .................... 256,163
1,300 Unitrin, Inc. ............................... 89,863
-----------
3,153,790
-----------
INTERNATIONAL OIL - 12.4%
16,900 Amoco Corporation ........................... 1,436,500
11,100 Atlantic Richfield .......................... 863,025
22,600 Chevron Corporation ......................... 1,833,425
27,100 Mobil Corporation ........................... 1,963,056
1,700 Pennzoil Company ............................ 113,794
9,000 Phillips Petroleum Company .................. 441,000
18,100 Texaco, Inc. ................................ 1,010,206
-----------
7,661,006
-----------
MEDICAL SUPPLIES - 0.1%
1,900 Bard (C.R.), Inc. ........................... 66,263
-----------
MOTOR VEHICLES - 9.5%
23,100 Chrysler Corporation ........................ 899,456
1,300 Cummins Engine, Inc. ........................ 75,238
3,500 Dana Corporation ............................ 190,969
2,700 Eaton Corporation ........................... 259,369
41,000 Ford Motor Company .......................... 2,319,044
25,100 General Motors Corporation .................. 1,730,331
2,700 PACCAR, Inc. ................................ 170,944
4,200 TRW, Inc. ................................... 230,213
-----------
5,875,564
-----------
NON-DURABLE & ENTERTAINMENT - 0.6%
2,500 American Greetings Corporation, Class A ..... 114,063
4,300 Hasbro, Inc. ................................ 156,144
4,500 Wendy's International, Inc. ................. 97,594
-----------
367,801
-----------
NON-FERROUS METALS - 0.2%
2,100 Phelps Dodge Corporation .................... 133,350
-----------
PAPER & FOREST PRODUCTS - 1.0%
1,600 Consolidated Papers ......................... 92,900
6,400 Fort James Corporation ...................... 290,400
3,500 Mead Corporation ............................ 119,656
3,500 Westvaco Corporation ........................ 113,750
-----------
616,706
-----------
PHOTOGRAPHY - 0.1%
1,500 Polaroid Corporation ........................ 68,719
-----------
PRODUCER GOODS - 1.8%
4,200 Cooper Industries, Inc. ..................... 235,725
1,600 Harsco Corporation .......................... 67,000
2,300 Hubbell, Inc., Class B ...................... 115,863
5,700 Ingersoll-Rand Company ...................... 271,463
2,800 Johnson Controls, Inc. ...................... 155,575
3,750 Parker-Hannifin Corporation ................. 174,844
2,000 Snap-On, Inc. ............................... 85,000
-----------
1,105,470
-----------
RAILROADS - 1.4%
12,900 Norfolk Southern Corporation ................ 444,244
8,500 Union Pacific Corporation ................... 433,500
-----------
877,744
-----------
RETAIL - 1.4%
9,300 Limited, Inc. ............................... 269,700
8,000 May Department Stores Company ............... 486,000
1,300 Mercantile Stores Company, Inc. ............. 85,556
-----------
841,256
-----------
STEEL - 0.1%
2,100 Timken Company .............................. 67,725
-----------
TECHNOLOGY - 6.2%
33,800 International Business Machines Corporation . 3,529,988
2,300 Northrop Grumman Corporation ................ 319,700
-----------
3,849,688
-----------
TELEPHONE - 0.5%
6,400 ALLTEL Corporation .......................... 292,400
-----------
TIRE & RUBBER - 0.1%
2,700 Cooper Tire & Rubber ........................ 62,269
-----------
TOBACCO - 1.0%
5,800 Fortune Brands .............................. 230,188
11,100 RJR Nabisco Holdings Corporation ............ 383,644
-----------
613,832
-----------
TRANSPORTATION - AIR - 0.5%
2,600 Delta Air Lines, Inc. ....................... 293,963
-----------
TRANSPORTATION SERVICES - 0.7%
7,500 CSX Corporation ............................. 419,531
-----------
TRAVEL & RECREATION - 0.3%
3,400 Brunswick Corporation ....................... 107,950
3,300 Viad Corporation ............................ 79,819
-----------
187,769
-----------
UTILITIES - 14.9%
4,200 Allegheny Energy, Inc. ...................... 128,363
6,500 American Electric Power Company ............. 312,000
5,000 Baltimore Gas & Electric Company ............ 157,813
26,725 Bell Atlantic Corporation ................... 2,398,569
5,200 Carolina Power & Light Company .............. 217,100
7,200 Central & South West Corporation ............ 193,050
8,000 Consolidated Edison Company New York , Inc. . 340,000
3,200 Consolidated Natural Gas Company ............ 184,000
12,308 Duke Energy Corporation ..................... 683,863
3,800 Enova Corporation ........................... 96,900
8,200 Entergy Corporation ......................... 237,288
7,800 FirstEnergy Corporation ..................... 225,713
6,300 FPL Group, Inc. ............................. 365,794
9,800 Houston Industries .......................... 253,575
4,100 Long Island Lighting Company ................ 127,100
2,200 New England ElectricSystem .................. 92,675
4,300 NIPSCO Industries ........................... 110,456
2,500 Northern States Power ....................... 137,344
2,800 Pacific Enterprises ......................... 101,675
15,000 PG & E Corporation .......................... 452,813
5,600 PP & L Resources, Inc. ...................... 125,300
7,900 Public Service Entreprise ................... 254,775
2,900 Puget Sound Power & Light ................... 78,663
3,600 SCANA Corporation ........................... 103,500
23,500 Southern Company ............................ 580,156
4,500 TECO Energy, Inc. ........................... 118,406
7,400 Unicom Corporation .......................... 237,263
16,400 US West, Inc. ............................... 853,825
2,200 Western Resources, Inc. ..................... 90,200
-----------
9,258,179
-----------
WINE & SPIRITS - 0.2%
2,300 Brown-Forman Corporation, Class B ........... 127,650
-----------
TOTAL COMMON STOCKS (Cost $46,216,552) ...... 61,751,984
-----------
TOTAL INVESTMENTS (Cost $46,216,552**) 99.6% 61,751,984
OTHER ASSETS AND LIABILITIES (Net) ..... 0.4% 237,558
----- -----------
NET ASSETS 100.0% $61,989,542
===== ===========
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $46,216,552.
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO February 28, 1998
STATEMENT OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS - 99.9%
ADVERTISING & MARKETING - 1.2%
4,500 Catalina Marketing Corporation* ............. $ 217,406
2,400 HA-LO Industries* ........................... 70,950
-----------
288,356
-----------
AEROSPACE & DEFENSE - 0.5%
3,850 AAR Corporation ............................. 116,944
-----------
AIR TRANSPORTATION - 2.7%
3,700 Alaska Air Group, Inc.* ..................... 203,731
16,350 Comair Holdings, Inc. ....................... 435,319
-----------
639,050
-----------
APPAREL - 3.1%
9,400 Nautica Enterprises, Inc.* .................. 270,838
4,100 St. John Knits, Inc. ........................ 173,225
9,950 Wolverine World Wide, Inc. .................. 279,844
-----------
723,907
-----------
BANKS - 0.2%
1,200 TR Financial Corporation .................... 39,563
-----------
BUSINESS MACHINES - 7.7%
2,100 ANADIGICS, Inc.* ............................ 32,813
2,500 Applied Magnetics Corporation* .............. 29,844
1,800 Auspex Systems, Inc.* ....................... 17,213
700 Bisys Group, Inc.* .......................... 25,988
1,200 Black Box Corporation* ...................... 42,900
3,400 Broderdund Software Corporation* ............ 84,150
3,900 Computer Products, Inc.* .................... 97,256
3,640 Comverse Technology, Inc.* .................. 170,170
13,375 Concord EFS, Inc.* .......................... 416,275
1,600 Fair Issac & Company, Inc. .................. 56,600
1,100 SanDisk Corporation* ........................ 27,981
5,500 S3, Inc.* ................................... 33,688
6,200 Tech Data Corporation* ...................... 288,300
18,900 Unisys Corporation* ......................... 337,838
3,700 Wind River Systems, Inc.* ................... 144,763
-----------
1,805,779
-----------
BUSINESS SERVICES - 10.0%
3,600 Alternative Resources Corporation* .......... 84,150
2,000 Bowne & Company, Inc. ....................... 84,750
5,000 Cambridge Technology Partners, Inc.* ........ 227,500
2,800 CDI Corporation* ............................ 129,500
2,800 CIBER, Inc.* ................................ 186,900
3,100 Computer Task Group, Inc. ................... 126,519
3,800 Cytec Industries, Inc.* ..................... 185,725
3,900 Dialogic Corporation* ....................... 169,163
5,700 DeVRY, Inc.* ................................ 193,800
1,850 Graco, Inc. ................................. 54,575
1,800 Jacobs Engineering Group, Inc.* ............. 53,888
8,600 Mentor Graphics Corporation* ................ 89,762
6,700 National Data Corporation ................... 294,800
3,900 Sequent Computer Systems, Inc.* ............. 82,631
4,200 ThermoTrex Corporation* ..................... 74,550
3,300 Vantive Corporation* ........................ 90,338
1,700 Volt Information Sciences, Inc.* ............ 89,357
1,100 Wackenhut Corrections Corporation* .......... 31,350
3,100 Zebra Technologies Corporation, Class A* .... 89,513
-----------
2,338,771
-----------
CONSTRUCTION - 6.3%
1,900 Centex Corporation .......................... 138,819
1,300 Florida Rock Industries, Inc. ............... 33,963
7,200 Lennar Corporation .......................... 201,150
1,600 Lone Star Industries ........................ 96,400
3,200 Medusa Corporation .......................... 151,400
2,000 NCI Building Systems, Inc.* ................. 79,000
10,900 Oakwood Homes Corporation ................... 431,913
1,900 Southdown, Inc. ............................. 121,600
6,400 Toll Brothers, Inc.* ........................ 192,000
1,000 Triangle Pacific Corporation* ............... 36,000
-----------
1,482,245
-----------
CONSUMER DURABLES - 4.0%
3,700 Best Buy Company, Inc.* ..................... 220,613
10,300 Blyth Industries, Inc.* ..................... 309,644
6,500 Champion Enterprises, Inc.* ................. 163,313
2,700 Coachmen Industries, Inc. ................... 77,119
4,100 Shorewood Packaging Corporation* ............ 100,450
2,300 Watsco, Inc. ................................ 62,963
-----------
934,102
-----------
CONSUMER NON-DURABLES - 0.5%
600 ADVO, Inc.* ................................. 14,662
3,800 Richfood Holdings, Inc. ..................... 108,063
-----------
122,725
-----------
CONSUMER SERVICES - 0.4%
2,800 Equity Corporation International* ........... 58,800
1,100 Scholastic Corporation* ..................... 43,588
-----------
102,388
-----------
DRUGS & MEDICINE - 11.0%
2,400 ADAC Laboratories, Inc.* .................... 63,900
5,600 Arrow International ......................... 219,100
2,850 Bio-Rad Laboratories, Inc., Class A* ........ 73,031
1,900 Datascope Corporation* ...................... 47,738
3,000 Hologic, Inc.* .............................. 68,625
6,900 Invacare Corporation ........................ 158,269
3,500 Jones Medical Industries, Inc. .............. 129,938
1,100 Medicis Pharmaceutical Corporation, Class A* 47,231
4,600 Mentor Corporation .......................... 134,263
4,258 Nature's Sunshine Products, Inc. ............ 109,644
2,300 Patterson Dental Company* ................... 69,575
2,300 Pediatrix Medical Group, Inc.* .............. 94,875
4,700 Respironics, Inc.* .......................... 127,488
5,700 Sofamor Danek Group, Inc.* .................. 428,925
8,800 Thermedics, Inc.* ........................... 144,100
8,010 Total Renal Care Holdings, Inc.* ............ 257,822
7,800 .Universal Health Services, Inc. Class B* ... 407,550
-----------
2,582,074
-----------
ELECTRONICS - 17.1%
8,300 Acxiom Corporation* ......................... 174,300
3,000 Altron, Inc.* ............................... 46,125
2,100 Applied Power, Inc., Class A ................ 75,600
3,000 Belden, Inc. ................................ 116,813
2,300 BMC Industries, Inc. ........................ 44,706
1,600 Borg-Warner Security Corporation* ........... 29,200
1,500 Burr-Brown Corporation* ..................... 61,688
1,300 Cable Design Technologies* .................. 37,781
2,900 Cognex Corporation* ......................... 69,781
1,900 Coherent, Inc.* ............................. 88,825
3,100 Credence Systems Corporation* ............... 103,463
7,000 Dallas Semiconductor Corporation ............ 332,500
1,400 ESS Technology, Inc.* ....................... 10,675
3,100 Etec Systems, Inc.* ......................... 162,556
2,700 Fluke Corporation ........................... 65,644
800 FSI International, Inc.* .................... 10,800
5,600 Gentex Corporation* ......................... 180,600
5,800 Input/Output, Inc.* ......................... 125,063
4,300 Kent Electronics Corporation* ............... 95,944
3,300 Lattice Semiconductor Corporation* .......... 176,757
2,900 Level One Communications, Inc.* ............. 130,319
700 Lindsay Manufacturing Company ............... 29,313
1,300 Littelfuse, Inc.* ........................... 36,725
3,600 Marshall Industries* ........................ 105,525
3,200 Mascotech, Inc. ............................. 66,400
2,400 Methode Electronics, Inc., Class A .......... 33,900
3,500 Novellus Systems, Inc.* ..................... 167,781
2,800 Oak Technology, Inc.* ....................... 19,600
5,600 Photronics, Inc.* ........................... 164,500
6,900 PictureTel Corporation* ..................... 49,594
1,600 Shiva Corporation* .......................... 21,800
5,800 Silicon Valley Group, Inc.* ................. 158,050
9,750 Symbol Technologies, Inc. ................... 497,859
1,100 Technitrol, Inc. ............................ 40,219
1,500 Titan International, Inc. ................... 28,125
3,000 Tracor, Inc.* ............................... 91,875
1,400 Unitrode Corporation* ....................... 26,338
2,400 Varian Associates, Inc. ..................... 139,200
3,700 Vicor Corporation* .......................... 104,525
4,900 Wyman-Gordon Company* ....................... 98,000
-----------
4,018,469
-----------
ENERGY-RAW MATERIALS - 3.9%
800 Atwood Oceanics, Inc.* ...................... 39,300
1,100 Benton Oil & Gas Company* ................... 13,681
4,000 KCS Energy, Inc. ............................ 71,000
3,200 Oceaneering International, Inc.* ............ 53,000
2,100 SEACOR SMIT, Inc.* .......................... 117,469
900 Simpson Manufacturing Company, Inc.* ........ 37,013
3,160 Swift Energy Company* ....................... 56,682
1,300 Techne Corporation* ......................... 24,456
3,100 Tersoro Petroleum Corporation* .............. 51,344
1,350 Tetra Tech, Inc.* ........................... 30,038
6,300 Varco International, Inc.* .................. 156,713
12,800 Vintage Petroleum, Inc. ..................... 256,800
-----------
907,496
-----------
FINANCE - 5.2%
2,700 Aames Financial Corporation ................. 36,113
4,000 AmeriCredit Corporation* .................... 109,250
2,800 Anixter International, Inc.* ................ 48,300
5,600 CMAC Investment Corporation ................. 375,200
4,200 Henry (Jack) & Associates ................... 144,900
5,966 Legg Mason, Inc. ............................ 356,469
2,800 Pre Paid Legal Services, Inc.* .............. 117,950
1,100 Riggs National Corporation .................. 29,150
-----------
1,217,332
-----------
FOOD & AGRICULTURE - 1.6%
2,600 Delta & Pine Land Company ................... 98,638
3,600 Smart & Final, Inc. ......................... 69,975
6,600 Smithfield Foods, Inc.* ..................... 208,725
-----------
377,338
-----------
INSURANCE - 4.7%
1,100 Acceptance Insurance Companies, Inc.* ....... 26,744
2,600 Executive Risk, Inc. ........................ 177,288
1,500 Markel Corporation* ......................... 261,000
10,800 UICI* ....................................... 346,950
4,900 Vesta Insurance Group, Inc. ................. 280,831
-----------
1,092,813
-----------
MANUFACTURING INDUSTRIES - 0.4%
1,400 Harman International Industries, Inc. ....... 65,100
2,400 Paxar Corporation* .......................... 33,600
-----------
98,700
-----------
MEDIA - 0.7%
2,600 BET Holdings, Inc., Class A* ................ 141,863
1,300 Proxim, Inc.* ............................... 17,225
-----------
159,088
-----------
NONDURABLE & ENTERTAINMENT - 1.6%
7,300 Applebee's International, Inc. .............. 167,900
1,100 IHOP Corporation* ........................... 39,463
2,000 Lone Star Technologies, Inc.* ............... 62,000
2,200 Regis Corporation ........................... 59,400
5,200 Sodak Gaming, Inc.* ......................... 39,650
-----------
368,413
-----------
NON-FERROUS METALS - 0.5%
3,300 Wolverine Tube, Inc.* ....................... 127,463
-----------
PAPER & FOREST PRODUCTS - 0.2%
2,400 Lydall, Inc.* ............................... 42,150
-----------
PRODUCER GOODS - 1.8%
1,400 Barnes Group, Inc. .......................... 41,300
4,000 Ionics, Inc.* ............................... 172,000
7,200 JLG Industries, Inc. ........................ 112,500
2,100 Kuhlman Corporation ......................... 92,663
-----------
418,463
-----------
RETAIL - 5.4%
2,000 Buckle, Inc. ................................ 82,250
11,150 Claire's Stores, Inc.* ...................... 200,700
7,900 CompuCom Systems, Inc.* ..................... 69,619
1,400 Department 56, Inc.* ........................ 46,112
3,100 Dress Barn, Inc.* ........................... 90,481
4,200 Ethan Allen Interiors, Inc. ................. 234,150
1,100 Friedman's, Inc., Class A* .................. 19,594
3,900 Just For Feet, Inc.* ........................ 66,056
1,900 Miller (Herman), Inc. ....................... 116,375
3,100 Stein Mart, Inc.* ........................... 100,169
3,000 The Men's Wearhouse, Inc.* .................. 108,375
400 United Stationers, Inc.* .................... 23,950
3,900 West Marine, Inc.* .......................... 107,006
-----------
1,264,837
-----------
TELEPHONE - 2.0%
11,100 Aspect Telecommunications, Inc.* ............ 292,763
1,100 Coherent Communincation Systems Corporation* 46,475
5,600 Premisys Communications, Inc.* .............. 133,000
-----------
472,238
-----------
TRAVEL & RECREATION - 3.4%
3,700 Anchor Gaming Company* ...................... 251,600
6,100 GTECH Holding Corporation* .................. 215,406
8,200 Regal Cinemas, Inc.* ........................ 242,413
2,800 Rio Hotel & Casino, Inc.* ................... 79,625
-----------
789,044
-----------
TRUCKING & FREIGHT - 3.7%
2,400 Air Express International Corporation ....... 67,200
3,300 CNF Transportation, Inc. .................... 129,113
6,000 Expeditors International of Washington, Inc. 243,000
3,623 Heartland Express, Inc.* .................... 91,481
2,300 Landstar System, Inc.* ...................... 68,425
3,100 Swift Transportation Company, Inc.* ......... 101,138
7,100 Werner Enterprises, Inc. .................... 176,613
-----------
876,970
-----------
WINE & SPIRITS - 0.1%
600 Robert Mondavi Corporation, Class A* $ 24,900
-----------
TOTAL COMMON STOCKS (Cost $18,559,951) 23,431,618
-----------
TOTAL INVESTMENTS (Cost $18,559,951**) 99.9% 23,431,618
OTHER ASSETS AND LIABILITIES (Net) 0.1% 14,221
------ -----------
NET ASSETS 100.00% $23,445,839
====== ===========
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $18,559,951.
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO February 28, 1998
STATEMENT OF INVESTMENTS -- (Continued) (Unaudited)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
COMMON STOCKS - 99.8%
AEROSPACE & DEFENSE - 0.8%
9,900 AAR Corporation ............................. $ 300,713
3,600 Curtiss-Wright Corporation .................. 134,775
-----------
435,488
-----------
APPAREL - 1.8%
6,100 Brown Group, Inc. ........................... 90,738
7,600 Guilford Mills, Inc. ........................ 215,650
7,500 Kellwood Company ............................ 243,281
7,100 Springs Industries, Inc., Class A ........... 397,156
-----------
946,825
-----------
BANKS - 16.4%
7,750 BanCorp South, Inc. ......................... 338,094
9,900 Bank United Corporation, Class A ............ 466,538
7,300 CCB Financial Corporation ................... 792,963
9,000 Centura Banks, Inc. ......................... 637,875
9,800 Citizens Banking Corporation of Michigan .... 329,525
5,875 Commerce Bancorp, Inc. ...................... 279,797
7,102 F&M National Corporation .................... 250,346
5,500 FirstBank of Illinois Corporation ........... 249,219
7,600 First Commonwealth Financial ................ 225,150
10,900 First Hawaiian, Inc. ........................ 431,913
6,200 Fort Wayne National Corporation ............. 301,281
14,154 Fulton Financial Corporation ................ 455,582
8,326 Mid Am, Inc. ................................ 218,558
7,566 New York Bancorp, Inc. ...................... 306,423
4,500 ONBANCorp, Inc. ............................. 326,813
9,556 One Valley Bancorp, Inc. .................... 352,378
7,920 Provident Bankshares ........................ 272,250
5,000 S&T Bancorp, Inc. ........................... 263,750
30,572 Soveriegn Bancorp, Inc. ..................... 592,336
8,100 Susquehanna Bancshares, Inc. ................ 295,650
6,200 TR Financial Corporation .................... 204,406
8,066 Trustco Bank Corporation .................... 221,815
5,300 United Bankshares, Inc. ..................... 269,306
7,200 Whitney Holding Corporation ................. 454,500
-----------
8,536,468
-----------
BASIC INDUSTRIES - 0.6%
5,600 Brush Wellman, Inc. ......................... 151,200
7,000 RMI Titanium Company* ....................... 166,250
-----------
317,450
-----------
BROADCASTING & ADVERTISING - 0.4%
8,600 True North Communications ................... 221,988
-----------
BUSINESS SERVICES - 3.9%
7,100 ABM Industries, Inc. ........................ 255,600
5,650 American Business Products .................. 128,538
6,400 Bowne & Company, Inc. ....................... 271,200
17,200 Ogden Corporation* .......................... 473,000
20,000 Safety-Kleen Corporation .................... 536,250
10,000 Standard Register Company ................... 341,250
-----------
2,005,838
-----------
CAPITAL GOODS - 0.8%
13,700 Cincinnati Milacron, Inc. ................... 422,988
-----------
CHEMICALS - 1.9%
13,600 Calgon Carbon Corporation ................... 176,800
8,100 Dexter Corporation .......................... 329,063
7,900 Geon Company ................................ 158,000
9,500 Mississippi Chemical Corporation ............ 175,750
2,600 NCH Corporation ............................. 158,438
-----------
998,051
-----------
CONSTRUCTION - 2.0%
7,700 Centex Construction Products, Inc. .......... 244,475
6,300 Granite Construction, Inc. .................. 166,950
8,400 Interface, Inc. ............................. 321,300
4,000 Lawson Products, Inc. ....................... 111,000
4,100 U.S. Home Corporation* ...................... 179,631
-----------
1,023,356
-----------
CONSUMER DURABLES - 4.5%
4,400 Bassett Furniture, Inc. ..................... 136,400
14,300 Kimball International, Inc., Class B ........ 298,513
2,600 National Presto Industries .................. 101,238
21,700 Premark International, Inc. ................. 675,413
7,400 Pulte Corporation ........................... 336,700
7,500 Russ Berrie and Company, Inc. ............... 209,063
3,400 Skyline Corporation ......................... 108,588
9,200 Sturm Ruger & Company, Inc. ................. 185,725
4,200 Toro Company ................................ 168,525
5,200 Watsco, Inc. ................................ 142,350
-----------
2,362,515
-----------
CONSUMER SERVICES - 0.9%
27,800 Olsten Corporation .......................... 448,275
-----------
COSMETICS - 0.3%
3,500 Chemed Corporation .......................... 138,250
-----------
DRUGS & MEDICINE - 2.5%
4,700 Diagnostic Products Corporation ............. 133,363
3,666 Herbalife International, Class A* ........... 87,984
7,233 Herbalife International, Class B* ........... 168,167
14,900 Integrated Health Services, Inc. ............ 505,669
11,000 Owens & Minor, Inc. ......................... 195,250
10,700 Wellman, Inc. ............................... 230,050
-----------
1,320,483
-----------
ELECTRONICS - 1.8%
6,200 Fluke Corporation ........................... 150,738
8,000 Gerber Scientific, Inc. ..................... 158,500
20,700 Glenayre Technologies, Inc.* ................ 239,344
6,200 MTS Systems Corporation ..................... 101,138
4,000 Park Electrochemical Corporation ............ 128,500
7,400 Titan International, Inc. ................... 138,750
-----------
916,970
-----------
ENERGY - 1.9%
9,700 AMCOL International Corporation ............. 138,225
18,020 Atlantic Energy, Inc. ....................... 367,158
7,200 Berry Petroleum, Class A .................... 110,700
7,700 Indiana Energy, Inc. ........................ 230,038
9,100 Tersoro Petroleum Corporation* .............. 150,719
-----------
996,840
-----------
FINANCE - 4.1%
4,600 Bay View Capital Corporation ................ 159,850
10,700 Berkley (W.R.) Corporation .................. 488,188
5,275 Chittenden Corporation ...................... 201,769
10,900 Cityscape Financial Corporation* ............ 6,131
4,300 Dain Rauscher Corporation ................... 252,088
7,100 Eastern Enterprises ......................... 314,619
4,800 FNB Corporation ............................. 177,600
5,700 Gallagher (Arthur J.) & Company ............. 235,481
3,500 JSB Financial, Inc. ......................... 188,344
15,100 Phoenix Duff & Phelps ....................... 122,688
-----------
2,146,758
-----------
FLUID CONTROLS - 1.1%
9,800 Aeroquip-Vickers, Inc. ...................... 569,013
-----------
FOOD & AGRICULTURE - 2.2%
14,300 Bob Evans Farms, Inc. ....................... 294,044
6,200 International Multifoods .................... 173,213
10,100 Smucker (J.M.) Company, Class A ............. 268,913
8,900 Universal Foods Corporation ................. 400,500
-----------
1,136,670
-----------
INSURANCE - 5.1%
14,000 Alfa Corporation ............................ 252,000
10,425 ALLIED Group, Inc. .......................... 328,388
6,100 First American Financial Corporation ........ 363,713
9,600 Foremost Corporation of America ............. 219,000
9,900 Harleysville Group, Inc. .................... 241,313
4,000 MMI Companies ............................... 95,000
11,800 Ohio Casualty Company ....................... 551,650
10,100 Selective Insurance Group ................... 277,119
4,200 Trenwick Group, Inc. ........................ 153,300
6,100 Zenith National Insurance Corporation ....... 166,606
-----------
2,648,089
-----------
LEASING (EQUIPMENT) - 1.8%
8,500 GATX Corporation ............................ 658,750
14,100 Rollins Truck Leasing Corporation ........... 281,119
-----------
939,869
-----------
LIQUOR - 0.8%
12,900 Coors, Adolph Company, Class B .............. 403,125
-----------
MANUFACTURING INDUSTRIES - 5.1%
7,700 Brady (W.H.) Company ........................ 254,100
4,900 Fuller (H.B.) Company ....................... 278,688
10,366 Modine Manufacturing Company ................ 362,810
18,000 ROHN Industries, Inc. ....................... 104,063
4,700 Standex International Corporation ........... 145,994
11,400 Stewart & Stevenson Services, Inc. .......... 278,588
15,000 Trinity Industries, Inc. .................... 753,750
9,300 Watts Industries, Inc., Class A ............. 279,581
5,800 West Company, Inc. .......................... 183,788
-----------
2,641,362
-----------
MEDIA - 2.3%
10,200 Banta Corporation ........................... 303,450
29,700 Hollingher International, Inc. .............. 477,056
9,300 Media General, Inc., Class A ................ 437,100
-----------
1,217,606
-----------
MOTOR VEHICLES - 4.2%
7,450 Applied Industrial Technologies, Inc. ....... 193,700
8,600 Arvin Industries, Inc. ...................... 340,775
8,300 Borg-Warner Automotive, Inc. ................ 486,588
10,900 BREED Technologies, Inc. .................... 237,075
7,300 Exide Corporation ........................... 161,969
8,700 Intermet Corporation ........................ 171,825
6,370 Myers Industries, Inc. ...................... 130,585
6,200 Smith (A.O.) Corporation .................... 269,700
5,900 Standard Products Company ................... 192,488
-----------
2,184,705
-----------
NON-FERROUS METALS - 0.2%0
4,800 Castle (A.M.) & Company ..................... 115,800
-----------
PAPER & FOREST PRODUCTS - 1.0%
8,200 Chesapeake Corporation ...................... 278,288
14,400 Glatefelter (P.H.) Company .................. 252,900
-----------
531,188
-----------
PRODUCER GOODS - 3.5%
10,600 Albany International Corporation, Class A ... 252,413
7,000 Barnes Group, Inc. .......................... 206,500
2,800 Butler Manufacturing Company ................ 98,700
5,500 CLARCOR, Inc. ............................... 165,688
6,150 Hughes Supply, Inc. ......................... 213,328
6,300 Juno Lighting, Inc. ......................... 122,850
2,900 NACCO Industries, Inc. ...................... 377,181
4,900 Quanex Corporation .......................... 162,313
4,400 Zurn Industries, Inc. ....................... 193,050
-----------
1,792,023
-----------
RESTAURANTS - 0.6%
23,400 Boston Chicken, Inc.* ....................... 162,338
7,900 Luby's Cafeterias, Inc. ..................... 137,263
-----------
299,601
-----------
RETAIL - 3.3%
13,200 Great Atlantic & Pacific Tea Company, Inc. .. 401,775
7,300 Hancock Fabrics, Inc. ....................... 119,081
13,700 Longs Drug Stores, Inc. ..................... 434,119
8,800 Shopko Stores, Inc.* ........................ 231,550
6,000 Stanhome, Inc. .............................. 173,250
11,000 Talbots ..................................... 195,938
6,600 Wynns International, Inc. ................... 167,475
-----------
1,723,188
-----------
STEEL - 3.5%
14,500 ASARCO, Inc. ................................ 320,813
10,100 Birmingham Steel Corporation ................ 177,381
6,800 Carpenter Technology Corporation ............ 321,725
4,000 Cleveland-Cliffs, Inc. ...................... 205,500
5,200 Commercial Metals Company ................... 166,400
16,800 Inland Steel Industries, Inc. ............... 346,500
13,200 J & L Speciality Steel, Inc. ................ 121,275
8,800 Oregon Steel Mills, Inc. .................... 177,100
-----------
1,836,694
-----------
TOBACCO - 1.1%
12,200 Universal Corporation ....................... 579,500
-----------
TRANSPORTATION - 3.1%
17,400 Airborne Freight Corporation ................ 629,634
10,400 ASA Holdings, Inc. .......................... 418,600
8,200 SABRE Group Holdings, Inc.* ................. 270,600
9,100 USFreightways Corporation ................... 317,931
-----------
1,636,765
-----------
UTILITIES - 16.3%
13,600 Arch Coal Corporation ....................... 357,000
4,700 Bay State Gas Company ....................... 178,013
5,100 Black Hills Corporation ..................... 167,025
4,400 California Water Services Company ........... 132,550
7,800 Central Louisiana Electric Company, Inc. .... 253,500
11,100 Central Maine Power Company ................. 185,231
4,800 CILCORP, Inc. ............................... 222,600
7,000 Eastern Utilities Association ............... 167,563
5,700 Empire District Electric Company ............ 116,850
4,600 Energen Corporation ......................... 178,538
13,100 Idaho Power Company ......................... 457,681
10,600 IES Industries, Inc. ........................ 383,588
3,400 Interstate Power Company .................... 121,125
6,000 Laclede Gas Company ......................... 148,875
5,500 Madison Gas & Electric Company .............. 123,063
10,150 MDU Resources Group ......................... 314,016
11,600 Minnesota Power & Light Company ............. 469,075
17,100 Nevada Power Company ........................ 424,294
6,300 New Jersey Resources ........................ 229,950
7,800 Northwest Natural Gas Company ............... 219,863
6,100 Northwestern Public Service ................. 141,063
10,900 ONEOK, Inc. ................................. 381,500
10,500 Piedmont Natural Gas, Inc. .................. 325,500
6,800 Public Service Company of North Carolina .... 146,625
12,000 Quaker State Corporation .................... 181,500
13,600 Rochester Gas & Electric Company ............ 424,150
8,100 SIGCORP, Inc. ............................... 233,887
10,900 Snyder Oil Corporation ...................... 203,013
9,300 Southwest Gas Corporation ................... 188,325
8,500 Southwestern Energy Company ................. 93,500
4,600 TNP Enterprise, Inc. ........................ 147,775
5,000 United Illuminating Company ................. 230,313
12,200 United Water Resources, Inc. ................ 239,425
19,300 Washington Water Power ...................... 441,488
8,400 WPS Resources Corporation ................... 273,000
-----------
8,501,464
-----------
TOTAL COMMON STOCKS (Cost $41,270,246) 51,995,205
-----------
TOTAL INVESTMENTS (Cost $41,270,246**) 99.8% 51,995,205
OTHER ASSETS AND LIABILITIES (Net) 0.2% 84,248
----- -----------
NET ASSETS 100.0% $52,079,453
===== ===========
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $41,270,246.
See Notes to Financial Statements.
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------------------------------
<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 .............. $134,688,574 $61,751,984 $23,431,618 $51,995,205
Cash ...................................... -- 219,980 -- 178,402
Dividends receivable ...................... 66,224 204,010 2,802 103,787
Receivable for investment securities sold . -- -- 211,317 --
Receivable for Portfolio shares sold ...... 187,248 53,307 33,811 81,827
Prepaid expenses and other assets ......... 3,940 1,868 769 2,143
------------ ----------- ----------- -----------
Total Assets ............................ 134,945,986 62,231,149 23,680,317 52,361,364
------------ ----------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased -- 154,894 -- 103,962
Payable for Portfolio shares redeemed ..... 29,192 4,996 -- 103,898
Due to custodian .......................... 22,158 -- 185,134 --
Investment advisory fee payable (Note 2) .. 25,075 11,506 1,750 3,891
Administration fee payable (Note 2) ....... 17,295 9,154 4,875 8,087
Distribution fees payable (Note 3) ........ 15,308 -- 927 1,219
Trustees fees payable (Note 2) ............ 6,122 2,809 1,068 2,375
Transfer agent fees payable (Note 2) ...... 9,218 7,091 4,279 5,334
Custodian fees payable (Note 2) ........... 5,836 6,669 9,977 16,637
Accrued legal and audit fees .............. 21,220 15,012 6,385 11,297
Accrued expenses and other payables ....... 48,398 29,476 20,083 25,211
------------ ----------- ----------- -----------
Total Liabilities ....................... 199,822 241,607 234,478 281,911
------------ ----------- ----------- -----------
NET ASSETS ................................ $134,746,164 $61,989,542 $23,445,839 $52,079,453
============ =========== =========== ===========
Investments, at cost (Note 1) ............. $ 90,580,945 $46,216,552 $18,559,951 $41,270,246
============ =========== =========== ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES - (Continued)
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------------------------------
<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 (net investment loss) ............ $ 7,488 $ 223,915 $ (107,480) $ 120,072
Accumulated (distribution in excess of)
net realized gain on investments sold ... (90,326) 847,090 (43,254) 210,120
Net unrealized appreciation of investments. 44,107,629 15,535,432 4,871,667 10,724,959
Par value ................................. 4,831 2,847 1,362 3,055
Paid-in capital ........................... 90,716,542 45,380,258 18,723,544 41,021,247
------------ ----------- ----------- -----------
$134,746,164 $61,989,542 $23,445,839 $52,079,453
============ =========== =========== ===========
NET ASSETS:
Investment Class shares ................... $ 82,528,878 $14,787,559 $17,529,081 $22,218,203
============ =========== =========== ===========
Institutional Class shares ................ $ 52,217,286 $47,201,983 $ 5,916,758 $29,861,250
============ =========== =========== ===========
SHARES OUTSTANDING:
Investment Class shares ................... 2,959,820 678,905 1,018,460 1,302,136
============ =========== =========== ===========
Institutional Class shares ................ 1,871,284 2,168,440 343,736 1,752,456
============ =========== =========== ===========
INVESTMENT CLASS SHARES:
Net asset value, offering and redemption
price per share ......................... $ 27.88 $ 21.78 $ 17.21 $ 17.06
============ =========== =========== ===========
INSTITUTIONAL CLASS SHARES:
Net asset value, offering and redemption
price per share ......................... $ 27.90 $ 21.77 $ 17.21 $ 17.04
============ =========== =========== ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF OPERATIONS
For the Six Months Ended February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------------------------------
<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 ................................. $ 531,526 $ 951,880 $ 18,359 $ 608,365
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 2) .......... 150,655 81,629 24,778 60,646
Administration fee (Note 2) ............... 103,894 62,477 28,367 49,887
Transfer agent fees (Note 2) .............. 35,255 34,236 22,836 24,687
Custodian fees (Note 2) ................... 9,114 20,610 17,127 30,952
Registration and filing fees .............. 27,883 27,429 22,931 25,004
Legal and audit fees ...................... 29,355 19,944 7,769 15,131
Amortization of organization costs (Note 6) 288 300 279 207
Directors' fees and expenses (Note 2) ..... 10,861 6,348 2,055 4,963
Distribution fees (Note 3) ................ 22,408 3,460 3,127 5,116
Other ..................................... 31,273 27,852 14,146 20,235
----------- ----------- ----------- -----------
Subtotal ................................ 420,986 284,285 143,415 236,828
Fees waived by investment adviser (Note 2) (59,495) (34,116) (14,867) (36,388)
Custody earnings credit (Note 2) .......... (5,578) (8,164) (2,709) (5,089)
----------- ----------- ----------- -----------
Total net expenses ...................... 355,913 242,005 125,839 195,351
----------- ----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS) .............. 175,613 709,875 (107,480) 413,014
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (Notes 1 and 4):
Net realized gain on investments
during the period ....................... 757,123 2,462,732 620,321 2,720,206
Net change in unrealized appreciation
of investments during the period ........ 20,998,989 5,165,878 1,318,725 2,858,305
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS .......................... 21,756,112 7,628,610 1,939,046 5,578,511
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $21,931,725 $ 8,338,485 $ 1,831,566 $ 5,991,525
=========== =========== =========== ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------------------------------
<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) .............. $ 175,613 $ 709,875 $ (107,480) $ 413,014
Net realized gain on investments sold
during the period ....................... 757,123 2,462,732 620,321 2,720,206
Net change in unrealized appreciation
of investments during the period ........ 20,998,989 5,165,878 1,318,725 2,858,305
------------ ----------- ----------- -----------
Net increase in net assets resulting from
operations .............................. 21,931,725 8,338,485 1,831,566 5,991,525
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 .......................... 6,405,421 560,939 3,219,964 7,112,936
Shares issued as reinvestment
of dividends ....................... 1,615,105 959,302 560,583 2,577,679
Shares redeemed ...................... (10,862,489) (1,648,873) (1,488,289) (7,678,803)
------------ ----------- ----------- -----------
Total Investment Class shares ............. (2,841,963) (128,632) 2,292,258 2,011,812
------------ ----------- ----------- -----------
Institutional Class shares:
Shares sold .......................... 3,607,977 6,766,315 840,000 --
Shares issued as reinvestment
of dividends ....................... 1,059,360 3,921,647 185,135 3,607,462
Shares redeemed ...................... (1,586,676) (15,096,561) -- --
------------ ----------- ----------- -----------
Total Institutional Class shares .......... 3,080,661 (4,408,599) 1,025,135 3,607,462
------------ ----------- ----------- -----------
Net increase/(decrease) in net assets
from Capital Stock transactions ......... 238,698 (4,537,231) 3,317,393 5,619,274
------------ ----------- ----------- -----------
Net increase/(decrease) in net assets ..... 19,384,945 (1,333,654) 4,375,959 5,368,977
------------ ----------- ----------- -----------
NET ASSETS:
Beginning of period ....................... 115,361,219 63,323,196 19,069,880 46,710,476
------------ ----------- ----------- -----------
End of period ............................. $134,746,164 $61,989,542 $23,445,839 $52,079,453
============ =========== =========== ===========
Undistributed net investment
income (net investment loss) ............ $ 7,488 $ 223,915 $ (107,480) $ 120,072
============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (Continued)
For the Six Months Ended February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------------------------------
<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 ........................... 252,905 26,706 202,331 418,787
Shares issued as reinvestment
of dividends ........................ 64,812 46,098 36,213 156,508
Shares redeemed ....................... (429,890) (76,606) (91,359) (450,000)
----------- ----------- ----------- -----------
Net increase/(decrease) in Investment
Class shares outstanding ................. (112,173) (3,802) 147,185 125,295
=========== =========== =========== ===========
Institutional Class shares:
Shares sold ........................... 140,949 306,360 54,794 --
Shares issued as reinvestment
of dividends ........................ 42,477 188,541 11,960 219,301
Shares redeemed ....................... (63,432) (736,578) -- --
----------- ----------- ----------- -----------
Net increase/(decrease) in Institutional
Class shares outstanding ................. 119,994 (241,677) 66,754 219,301
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (Continued)
Year Ended August 31, 1997
- --------------------------------------------------------------------------------------------------------
<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 period ........................ 2,999,006 3,378,742 933,077 4,279,058
Net change in unrealized appreciation
of investments during the period ......... 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 period ........................ 26,797,331 35,384,690 21,626,719 34,663,654
------------ ----------- ----------- -----------
End of period .............................. $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>
<TABLE>
- --------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (Continued)
Year Ended August 31, 1997
- --------------------------------------------------------------------------------------------------------
<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>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Investment Class Shares
------------------------------------------------------------------------------
Six Months Year Ended August 31, Period
Ended -------------------------------------------------- Ended
2/28/98+ 1997 1996 1995 1994 8/31/93(1)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 23.92 $ 19.35 $ 16.34 $ 13.31 $ 12.74 $ 12.50
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income .......................... 0.04*** 0.04*** 0.07 0.10 0.15 0.21
Net realized and unrealized gain on
investments .............................. 4.50 7.29 3.45 3.03 0.65 0.10
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 4.54 7.33 3.52 3.13 0.80 0.31
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ........... (0.06) (0.03) (0.12) (0.10) (0.23) (0.07)
Distributions from capital gains ............... (0.52) (2.73) (0.39) -- -- --
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.58) (2.76) (0.51) (0.10) (0.23) (0.07)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ................. $ 27.88 $ 23.92 $ 19.35 $ 16.34 $ 13.31 $ 12.74
======== ======== ======== ======== ======== ========
Total return (a) ............................... 19.27%** 40.91% 21.90% 23.67% 6.34% 2.46%**
======== ======== ======== ======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ........... $ 82,529 $ 73,480 $ 19,035 $ 21,348 $ 8,424 $ 8,061
Operating expenses including
reimbursement/waiver/custody
earnings credit .......................... 0.61%* 0.81% 0.93% 0.84% 0.68% --
Operating expenses excluding custody
earnings credit .......................... 0.62%* 0.91% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit .......................... 0.72%* 1.09% 0.96% 1.05% 1.39% 1.14%**
Net investment income including
reimbursement/waiver/custody
earnings credit .......................... 0.27%* 0.20% 0.39% 0.94% 1.18% 1.66%**
Portfolio turnover rate ........................ 13%** 43% 44% 30% 22% 2%**
Average commission rate paid (b) ............... $ 0.0247 $ 0.0247 $ 0.0312 -- -- --
- ----------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Large Company Growth Portfolio Investment Class Shares commenced operations on September 30, 1992.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO - (Continued)
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Institutional Class Shares
-------------------------------------------
Six Months Year Period
Ended Ended Ended
2/28/98+ 8/31/97 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 ................................ 0.04*** 0.05*** 0.01
Net realized and unrealized gain on investments ...... 4.54 7.29 1.07
-------- -------- --------
Total from investment operations ..................... 4.58 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 ....................... $ 27.90 $ 23.91 $ 19.35
======== ======== ========
Total return (a) ..................................... 19.39%** 40.99% 5.91%**
======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 52,217 $ 41,881 $ 7,763
Operating expenses including
reimbursement/waiver/custody earnings credit ...... 0.55%* 0.78% 0.91%*
Operating expenses excluding custody earnings credit . 0.56%* 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 ...... 0.33%* 0.23% 0.41%*
Portfolio turnover rate .............................. 13%** 43% 44%**
Average commission rate paid (b) ..................... $ 0.0247 $ 0.0247 $ 0.0312
- ------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Large Company Growth Portfolio Institutional Class Shares commenced operations on July 15, 1996.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Investment Class Shares
------------------------------------------------------------------------------
Six Months Year Ended August 31, Period
Ended -------------------------------------------------- Ended
2/28/98+ 1997 1996 1995 1994 8/31/93(1)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 20.49 $ 17.80 $ 16.02 $ 13.99 $ 15.18 $ 12.50
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income ........................... 0.23*** 0.47*** 0.85 0.34 0.36 0.54
Net realized and unrealized gain/(loss)
on investments ............................... 2.65 5.13 1.91 2.19 (0.90) 2.30
-------- -------- -------- -------- -------- --------
Total from investment operations ................ 2.88 5.60 2.76 2.53 (0.54) 2.84
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ............ (0.38) (0.60) (0.47) (0.40) (0.36) (0.16)
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) (0.16)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .................. $ 21.78 $ 20.49 $ 17.80 $ 16.02 $ 13.99 $ 15.18
======== ======== ======== ======== ======== ========
Total return (a) ................................ 14.43%** 34.27% 17.52% 18.97% (3.61)% 22.93%**
======== ======== ======== ======== ======== ========
Ratios to average net assets/ supplemental data:
Net assets, end of period (in 000's) ............ $ 14,788 $ 13,989 $ 17,960 $ 22,926 $ 12,158 $ 8,116
Operating expenses including
reimbursement/waiver/custody
earnings credit .............................. 0.78%* 0.91% 0.89% 0.81% 0.58% --
Operating expenses excluding custody
earnings credit .............................. 0.81%* 0.96% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit .............................. 0.91%* 1.18% 0.92% 1.02% 1.18% 1.32%**
Net investment income including
reimbursement/waiver/custody
earnings credit .............................. 2.14%* 2.51% 3.12% 3.77% 4.02% 4.27%**
Portfolio turnover rate ......................... 29%** 65% 56% 58% 47% 22%**
Average commission rate paid (b) ................ $ 0.0122 $ 0.0222 $ 0.0269 -- -- --
- ----------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Large Company Value Portfolio Investment Class Shares commenced operations
on September 30, 1992.
(a) Total return represents aggregate total return for the year indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO - (Continued)
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Institutional Class Shares
--------------------------------------------
Six Months Year Period
Ended Ended Ended
2/28/98+ 8/31/97 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 ................................ 0.23*** 0.47*** 0.07
Net realized and unrealized gain on investments ...... 2.67 5.13 0.54
-------- -------- --------
Total from investment operations ..................... 2.90 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 ....................... $ 21.77 $ 20.47 $ 17.80
======== ======== ========
Total return (a) ..................................... 14.52%** 34.26% 3.55%**
======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 47,202 $ 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 ...... 0.86%* 1.18% 0.90%*
Net investment income including
reimbursement/waiver/custody earnings credit ...... 2.19%* 2.51% 3.14%*
Portfolio turnover rate .............................. 29%** 65% 56%**
Average commission rate paid (b) ..................... $ 0.0122 $ 0.0222 $ 0.0269
- ------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Large Company Value Portfolio Institutional Class Shares commenced
operations on July 15, 1996.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Investment Class Shares
------------------------------------------------------------------------------
Six Months Year Ended August 31, Period
Ended -------------------------------------------------- Ended
2/28/98+ 1997 1996 1995 1994 8/31/93(1)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 16.61 $ 18.56 $ 18.55 $ 15.39 $ 16.03 $ 12.50
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income/(loss) ................... (0.09)*** (0.17)*** (0.19) (0.07) (0.04) 0.08
Net realized and unrealized gain
on investments ........................... 1.36 2.38 3.06 3.54 0.90 3.48
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 1.27 2.21 2.87 3.47 0.86 3.56
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ........... -- -- -- -- -- (0.03)
Distributions in excess of net investment
income ................................... -- -- -- -- (0.07) --
Distributions from capital gains ............... (0.67) (4.16) (2.86) (0.31) (1.43) --
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.67) (4.16) (2.86) (0.31) (1.50) (0.03)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ................. $ 17.21 $ 16.61 $ 18.56 $ 18.55 $ 15.39 $ 16.03
======== ======== ======== ======== ======== ========
Total return (a) ............................... 8.09%** 15.16% 17.50% 23.04% 5.20% 28.50%**
======== ======== ======== ======== ======== ========
Ratios to average net assets/ supplemental data:
Net assets, end of period (in 000's) ........... $ 17,529 $ 14,471 $ 18,049 $ 21,882 $ 11,188 $ 7,527
Operating expenses including
reimbursement/waiver/custody
earnings credit ............................. 1.28%* 1.22% 1.01% 0.95% 0.74% --
Operating expenses excluding custody
earnings credit ............................. 1.31%* 1.24% -- -- -- --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ............................. 1.46%* 1.45% 1.05% 1.16% 1.47% 1.40%**
Net investment income/(loss) including
reimbursement/waiver/custody
earnings credit ............................. (1.09)%* (1.05)% (0.78)% (0.54)% (0.40)% 0.53%**
Portfolio turnover rate ........................ 19%** 105% 87% 111% 46% 55%**
Average commission rate paid (b) ............... $ 0.0157 $ 0.0175 $ 0.0200 -- -- --
- ----------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Small Company Growth Portfolio Investment Class Shares commenced operations
on October 1, 1992.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO - (Continued)
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Institutional Class Shares
------------------------------------------
Six Months Year Period
Ended Ended Ended
2/28/98+ 8/31/97 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) ................................ (0.09)*** (0.17)*** (0.02)
Net realized and unrealized gain on investments ...... 1.36 2.38 1.92
-------- -------- --------
Total from investment operations ..................... 1.27 2.21 1.90
-------- -------- --------
Less distributions:
Dividends from net investment income ................. -- -- --
Distributions from capital gains ..................... (0.67) (4.16) --
-------- -------- --------
Total distributions .................................. (0.67) (4.16) --
-------- -------- --------
Net asset value, end of period ....................... $ 17.21 $ 16.61 $ 18.56
======== ======== ========
Total return (a) ..................................... 8.09%** 15.14% 11.40%**
======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 5,917 $ 4,599 $ 3,577
Operating expenses including
reimbursement/waiver/custody earnings credit ......... 1.24%* 1.22% 0.98%*
Operating expenses excluding custody earnings credit . 1.27%* 1.24% --
Operating expenses excluding
reimbursement/waiver/custody
earnings credit ................................... 1.42%* 1.45% 1.02%*
Net investment (loss) including
reimbursement/waiver/custody
earnings credit ................................... (1.05)%* (1.05)% (0.75)%*
Portfolio turnover rate .............................. 19%** 105% 87%**
Average commission rate paid (b) ..................... $ 0.0157 $ 0.0175 $ 0.0200
- ------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Small Company Growth Portfolio Institutional Class Shares commenced
operations on July 15, 1996.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Investment Class Shares
----------------------------------------------------------------------------
Six Months Year Ended August 31, Period
Ended -------------------------------------------------- Ended
2/28/98+ 1997 1996 1995 1994 8/31/93(1)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 17.25 $ 15.92 $ 15.41 $ 14.32 $ 14.81 $ 12.50
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income .......................... 0.15*** 0.40*** 0.56 0.55 0.45 0.35
Net realized and unrealized gain/(loss)
on investments .............................. 2.00 4.27 0.95 1.06 (0.45) 2.10
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 2.15 4.67 1.51 1.61 0.00 2.45
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ........... (0.37) (0.75) (0.56) (0.45) (0.33) (0.14)
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) (0.14)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ................. $ 17.06 $ 17.25 $ 15.92 $ 15.41 $ 14.32 $ 14.81
======== ======== ======== ======== ======== ========
Total return (a) ............................... 13.00%** 33.73% 10.01% 11.84% (0.01)% 19.72%**
======== ======== ======== ======== ======== ========
Ratios to average net assets/ supplemental data:
Net assets, end of period (in 000's) ........... $ 22,218 $ 20,299 $ 27,329 $ 25,978 $ 23,438 $ 15,155
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% 1.32%**
Net investment income including
reimbursement/waiver/custody
earnings credit ............................. 1.68%* 2.58% 3.13% 4.12% 3.64% 3.65%**
Portfolio turnover rate ........................ 30%** 105% 81% 86% 49% 27%**
Average commission rate paid (b) ............... $ 0.0191 $ 0.0223 $ 0.0238 -- -- --
- ----------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Small Company Value Portfolio Investment Class Shares commenced operations
on September 30, 1992.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO - (Continued)
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------
For a Portfolio Share Outstanding Throughout Each Period.
<CAPTION>
Institutional Class Shares
--------------------------------------------
Six Months Year Period
Ended Ended Ended
2/28/98+ 8/31/97 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 ................................ 0.15*** 0.40*** 0.06
Net realized and unrealized gain on investments ...... 2.01 4.27 0.41
-------- -------- --------
Total from investment operations ..................... 2.16 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 ....................... $ 17.04 $ 17.23 $ 15.92
======== ======== ========
Total return (a) ..................................... 13.04%** 33.74% 3.04%**
======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 29,861 $ 26,412 $ 7,335
Operating expenses including
reimbursement/waiver/custody earnings credit ...... 0.79%* 0.86% 0.85%*
Operating expenses excluding custody earnings credit . 0.81%* 0.90% --
Operating expenses excluding
reimbursement/waiver/custody earnings credit ..... 0.96%* 1.15% 0.89%*
Net investment income including
reimbursement/waiver/custody earnings credit ...... 1.72%* 2.58% 3.16%*
Portfolio turnover rate .............................. 30%** 105% 81%**
Average commission rate paid (b) ..................... $ 0.0191 $ 0.0223 $ 0.0238
- ------------
+ Unaudited.
* Annualized.
** Non-annualized.
*** Computed based on average shares outstanding.
(1) Small Company Value Portfolio Institutional Class Shares commenced
operations on July 15, 1996.
(a) Total return represents aggregate total return for the period indicated.
(b) Average commission rate paid per share of portfolio securities purchased
and sold by the Portfolio.
</TABLE>
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
WILSHIRE TARGET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES.
Wilshire Target Funds, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end investment
company, which was incorporated under Maryland law on July 30, 1992. The Fund
operates as a series company having four series: Large Company Growth Portfolio,
Large Company Value Portfolio, Small Company Growth Portfolio and Small Company
Value Portfolio (the "Portfolios"). The Fund accounts separately for the assets,
liabilities and operations of each series.
Each of the Portfolios offers Investment and Institutional Class shares (the
"shares"), each of which has equal rights as to Class and voting privileges. The
Investment Class has exclusive voting rights with respect to its service and
distribution plan. Investment income, realized and unrealized capital gains and
losses and the common expenses of each Portfolio are allocated on a pro-rata
basis to each class based on the relative net assets of each class to the total
net assets of each Portfolio. Each class of shares differs in its respective
service and distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Portfolios in the
preparation of their financial statements.
PORTFOLIO VALUATION: Each Portfolio's investment securities are valued at the
last sale price on the securities exchange or national securities market on
which such securities primarily are traded. Securities not listed on an exchange
or national securities market, or securities in which there were no
transactions, are valued at the average of the most recent bid and asked prices.
Bid price is used when no asked price is available. Short-term investments are
carried at amortized cost, which approximates value. Any securities or other
assets for which recent market quotations are not readily available are valued
at fair value as determined in good faith pursuant to procedures adopted by the
Board of Directors.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments is recognized on the accrual
basis.
EXPENSES: Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses of the Portfolios not directly
attributable to the operations of any class of shares are prorated among the
classes to which the expense relates based on the relative net assets of each
class of shares. Expenses and fees, including the advisory and administration
fees, are accrued daily and taken into account for the purpose of determining
the net asset value of each Portfolio's shares.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment
income, if any, are declared and paid annually. The Portfolio's net realized
capital gains, unless offset by any available capital loss carryforward, are
distributed to shareholders annually. Additional distributions of net investment
income and capital gains may be made at the discretion of the Board of Directors
in order to avoid the application of a 4% non-deductible Federal excise tax.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Portfolios, timing
differences and differing characterization of distributions made by each
Portfolio as a whole.
FEDERAL INCOME TAXES: The Fund intends to qualify each year as a regulated
investment company by complying with the requirements of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and by,
among other things, distributing substantially all of its earnings to
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS.
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Wilshire Associates Incorporated ("Wilshire"). Under the terms
of the Advisory Agreement dated July 11, 1996, the Fund has agreed to pay
Wilshire a fee, computed daily and paid monthly, at the annual rate of .25 of 1%
of the value of each Portfolio's average daily net assets. However, the Advisory
Agreement also 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 exceed
the annual rate specified in the following table for such Portfolio, the
investment advisory fee otherwise payable for that period by the Portfolio under
the Advisory Agreement will be reduced by the amount of the excess, but not
below an annual fee rate of .10 of 1% of such Portfolio's average daily net
assets.
FUND ANNUAL RATE (%)
---- ---------------
Large Company Growth Portfolio ............................. .80
Large Company Value Portfolio .............................. .77
Small Company Growth Portfolio ............................. .91
Small Company Value Portfolio .............................. .66
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 Funds. 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 Funds. The voluntary waiver may be
terminated at any time by Wilshire by notice to the Directors of the Fund.
For the six months ended February 28, 1998, Wilshire voluntarily waived fees as
follows:
FUND
----
Large Company Growth Portfolio .............................. $59,495
Large Company Value Portfolio ............................... 34,116
Small Company Growth Portfolio .............................. 14,867
Small Company Value Portfolio ............................... 36,388
First Data Investor Services Group, Inc. ("Investor Services Group"), a
wholly-owned subsidiary of First Data Corporation, serves as the Fund's
administrator pursuant to an administration agreement (the "Administration
Agreement"). Under the terms of the Administration Agreement, the Fund has
agreed to pay Investor Services Group a fee, computed daily and paid monthly, at
the annual rate of .15 of 1% of the Fund's monthly average net assets up to
aggregate assets of $1 billion, .10 of 1% of the Fund's monthly average net
assets on the next $4 billion in aggregate assets, and .08 of 1% of the Fund's
monthly average net assets on the excess net assets. In addition, the Fund has
agreed to pay Investor Services Group an annual fee of $25,000 per each
Portfolio and $2,000 for each additional class.
The Northern Trust Company serves as the Fund's custodian. Each Portfolio
maintains a cash balance with its custodian and receives a reduction of its
custody fees and expenses for the amount of interest earned on such uninvested
cash balances. The amounts are presented as Custody earnings credits in the
Statements of Operations.
No officer, director or employee of Wilshire, Investor Services Group, or any
affiliate thereof, receives any compensation from the Fund for serving as
Director or officer of the Fund. The Fund pays each unaffiliated Director an
annual fee of $3,000 plus an additional $2,500 for each board meeting attended.
The Fund also reimburses expenses incurred by the unaffiliated Directors in
attending such meetings.
3. SERVICE AND DISTRIBUTION PLAN.
The Directors and shareholders of the Fund have adopted a service and
distribution plan (the "Plan") pursuant to Rule 12b-1 adopted by the Securities
and Exchange Commission under the 1940 Act, with respect to the Investment Class
shares of each Portfolio. Under the Plan, the Fund reimburses First Data
Distributors, Inc., the Fund's distributor, at an annual rate of up to .25 of 1%
of the value of the average daily net assets attributable to the Investment
Class shares of each Portfolio for certain shareholder services provided by
securities dealers or other financial intermediaries ("service fees") and for
certain distribution expenses for the purpose of financing any activity intended
to result in the sale of Investment Class shares. Prior to June 3, 1997, the
Plan permitted the reimbursement of service fees only.
4. SHARES OF BENEFICIAL INTEREST.
Each fund is authorized to issue an unlimited number of beneficial interest
with a par value of $0.001 per share.
5. SECURITIES TRANSACTIONS.
For the six months ended February 28, 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 ............. $15,995,172 $17,617,580
Large Company Value Portfolio .............. 19,014,831 26,999,588
Small Company Growth Portfolio ............. 6,277,667 3,805,778
Small Company Value Portfolio .............. 17,306,187 17,443,872
The aggregate gross unrealized appreciation and depreciation, net unrealized
appreciation (depreciation) and cost for all securities as computed on a federal
income tax basis, at February 28, 1998 for each Fund is as follows:
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
---- ------------ ------------
Large Company Growth Portfolio ............. $45,197,872 $ 1,090,243
Large Company Value Portfolio .............. 15,817,295 281,863
Small Company Growth Portfolio ............. 6,083,798 1,212,131
Small Company Value Portfolio .............. 11,839,555 1,114,596
6. ORGANIZATION COSTS
The Portfolios bear all costs in connection with their organization,
including registration and notification fees and expenses with respect to the
sale of their shares under Federal and state securities regulations. All such
costs are being amortized on the straight-line method over a period of five
years from commencement of operations.
<PAGE>
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<PAGE>
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<PAGE>
[Logo]
TARGET FUNDS, INC.
P.O. Box 5170
Westborough, Massachusetts 01581-5170
(Form Number WIL-010(10/97))
