WNL SERIES TRUST
ANNUAL REPORT
DECEMBER 31, 1997
The information in this report is intended for informational purposes. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by current prospectuses for WNL Series Trust and WNL
Separate Account A. The prospectuses contain important information about
Western National Life Insurance Company and the ElitePlus Bonus Variable
Annuity, including charges and expenses. Please read the prospectuses carefully
before investing.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion of the 1997 performance of the portfolios within WNL
Series Trust supplements the financial statements and related notes found
elsewhere in this report.
The total returns reported are net of portfolio operating expenses but do not
reflect any insurance or administrative charges that apply to the separate
account. Furthermore, the portfolios' performances reflect the absorption of
certain fund expenses by Western National Life Insurance Company. Had these
expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost.
As with all money market funds, an investment in the Global Advisors Money
Market Portfolio is neither insured nor guaranteed by the U.S. Government.
Although the Portfolio strives to maintain a stable net asset value of $1.00 per
share, there can be no assurance that this objective will be met.
BEA GROWTH AND INCOME PORTFOLIO
- -----------------------------------
The BEA Growth and Income Portfolio's total return for 1997, 22.34%, exceeded
the 20.98% of its benchmark, a composite made up of 50%, the S&P 500 Index and
50%, the Lehman Brothers Aggregate Bond Index.
The strategy in the equity portion of the portfolio involves top-down sector
selection combined with bottom-up stock selection within sectors. The manager's
overall strategy is to try to outperform the market, not "by hitting home runs",
but by avoiding major mistakes; i.e., managing risks. The favorable performance
in 1997 was largely attributable to the manager's emphasis on large-cap,
recognizable names and sectors that were deemed to be among the less cyclical.
The portfolio's concentration of large-cap stocks generated higher returns than
those in the benchmark. This was particularly true among the portfolio's
consumer stocks (e.g., Clorox, Heintz, McKesson, Gannet, Home Depot, and
Omnicron). On the other hand, performance was hurt by exposure to small-cap
issues and a lack of positions in telephone and electric utilities, as utilities
rallied strongly late in the year.
Within the fixed-income allocation, the manager took advantage of volatility in
bond markets by maintaining a neutral duration and utilizing long options and
putable bonds (the manager believed that puts and options were undervalued by
the market). The portfolio was concentrated in certain sectors, particularly
financials because their bond prices lagged those of industrials. Other
overweights were in communications and in mortgage-backed securities (although
the manager regretted having lightened up slightly on mortgages early in the
year). The portfolio was generally composed of relatively short-maturity,
better credit-quality issues because credit spreads were narrow. However the
manager added a "sprinkle" of lower-grade, high-yield utilities that were
considered buyout candidates. In the fourth quarter the performance was
negatively affected by holdings of emerging market debt securities (a result of
the problems in Asia), which generated the period's lowest returns among major
fixed-income sectors.
BEA believes that at year end debt instruments possessed risk similar to that of
equities but have less appreciation potential. Particularly, bonds have far
more downward potential resulting from possible future increases in interest
rates or weakening of the dollar in international markets. Accordingly, the
manager has set the target weights for the portfolio at 60% equities and 40%
fixed income.
<PAGE>
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
- ------------------------------------------------
The Credit Suisse International Equity Portfolio's total return for 1997, 4.30%
handily beat the negative (1.95%) of its benchmark, the Morgan Stanley Composite
Index --Europe, Australia, & Far East (EAFE). Under normal conditions, the
portfolio invests at least 65% of its assets in issuers located in at least five
countries outside the United States.
In 1997 the manager anticipated continuing problems in Japan and to a lesser
extent expected problems in the rest of Asia (e.g., he had entirely exited the
Thai market well before its collapse). As a result, the portfolio was
underweighted in Japan and Asia, the principal factors producing the favorable
performance relative to the EAFE. Unfortunately, being underweighted did not
mean being out of Asian markets altogether, and the resulting 4% total yield,
while beating its index, was disappointing for an equity portfolio. The manager
overweighted the emerging markets in Eastern Europe and Latin America throughout
1997. That decision that proved beneficial for the first three quarters of the
year, but to some extent backfired in October when the "Asian flu" knocked out
all emerging markets worldwide.
With respect to currency risk, the manager correctly anticipated that the U.S.
dollar would remain strong in 1997 and so kept the portfolio largely hedged in
U.S. dollars.
ELITEVALUE ASSET ALLOCATION PORTFOLIO
- ----------------------------------------
The EliteValue Asset Allocation Portfolio's total return for the year, 21.08%,
significantly exceeded the 18.75% of its benchmark, the Lipper Benchmark --
Flexible Portfolio Funds.
Although the portfolio is an asset allocation fund, the manager has consistently
kept it almost entirely invested in equities. The portfolio consists of a
relatively small number of stocks. The manager believes in taking large
positions in a limited number of companies he believes will generate excess
cashflow that will enhance long-term value to the shareholders; i.e., his focus
is on individual companies' prospective long-term potential rather than on
predicting where the stock market is going in the short term. The portfolio has
a very low turnover, as new names are added only when the manager finds
investments that are better than what is currently in the portfolio. The
long-term goal for the portfolio is to attain a consistent 12-15% annual return.
In 1997 the disappointing performance of a few large holdings detracted from
overall results. The large holding of Wells Fargo proved disappointing as it
continued to encounter difficulties with merging in the acquired operations of
First Interstate. A large position in Boeing, that was inherited from a
very-successful investment in McDonnell Douglas prior to its acquisition by
Boeing, similarly proved a disappointment, as that company disclosed that it was
experiencing expensive problems in "ramping up" production to meet its strong
sales. Because of a lack of what the manager perceived to be good investment
opportunities, the cash position (including discount notes) in the portfolio
built up during the year to 21% at year end. That relatively large cash
position was detrimental to performance relative to the index in a year of
rising stock prices.
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
- -------------------------------------------
The Global Advisors Growth Equity's total return for 1997, 31.67% slightly
lagged the 33.35% of its benchmark, the S&P 500 Index.
The portfolio is an enhanced index fund, that is, one that closely tracks the
S&P 500 by industry classification but attempts to pick the best individual
stocks within each industry. Stock selection is driven by a computer model that
daily evaluates a number of factors to determine the optimal securities
holdings. The portfolio turnover is high because of trades dictated by the
model. Early in the year the portfolio yield lagged its index because the
market's large-cap bias made it difficult for such a broad-based portfolio to
<PAGE>
keep up. In the third quarter mid-cap issues rallied, and the portfolio's yield
shortfall was eliminated. The third quarter's performance also benefited from a
strong performance in the slightly over-weighted technology sector, particularly
the performances of Dell, Compaq and Quantum. Some of that performance was
given back in the fourth quarter, when the technology sector weakened. Because
of the portfolio's small size, it held a relatively large cash position, a
factor that hampered performance in a year of rising stock prices.
GLOBAL ADVISORS MONEY MARKET PORTFOLIO
- ------------------------------------------
The Global Advisors Money Market Portfolio's total return for 1997, 5.50%,
exceeded the 5.14% of its benchmark, the 91-day Treasury Bill Index. That
success was achieved in spite of the fact that the portfolio's small size and
volatility make it difficult for the manager to make economic trades while
maintaining sufficient diversity and liquidity.
SALOMON U.S. GOVERNMENT SECURITIES PORTFOLIO
- ------------------------------------------------
The Salomon U.S. Government Securities Portfolio's total return for 1997, 8.89%,
beat the 8.42% of its benchmark, the Lipper U.S. Treasury 1-to-10-year Index.
The manager started the year slightly bearish, anticipating that the Fed would
tighten early in the year. According he shortened the portfolio maturity
slightly relative to the benchmark, but returned to a neutral duration near
mid-year when it became apparent that inflation remained under control and the
Fed would not tighten. In the fourth quarter the manager slightly lengthened
the duration relative to the index in an effort to enhance yield. As it is
difficult to outperform the market in a stable rate environment, the manager
maintained an overweight position in mortgage-backed bonds throughout the year
in order to attain yield. The manager's outlook for the near future is for a
continued flat rate environment, so the portfolio should continue to perform
near its benchmark level.
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
- -----------------------------------------------------------
The Van Kampen American Capital Emerging Growth's total return for the year,
20.45%, surpassed the 16.98% of its benchmark, the Lipper Benchmark -- Mid-Cap
Funds.
The portfolio's strategy of seeking companies with expectations of growing
earnings and rising P/E multiples showed mixed results in 1997. Early in the
year the portfolio yield lagged the S&P 500 because the market's large-cap bias
made it difficult for such a broad-based portfolio to keep up. In the third
quarter mid-cap issues rallied, and the portfolio's yield shortfall was
eliminated. The third quarter's performance also benefited from a strong
performance in the over-weighted technology sector. Unfortunately, as the
technology sector suffered late in the year, so did the portfolio yield. In
addition to technology, the portfolio is concentrated in the health care,
consumer retail, energy, and to a lesser extent, financial sectors. The
portfolio's high beta (positive correlation to the overall market performance)
makes it subject to significant swings along with the market. Several
larger-cap investments were added to the portfolio during the year to mitigate
the adverse effect of the market's large-cap bias.
PERFORMANCE GRAPHS
- -------------------
The following graphs illustrate the performance of $10,000 invested in each of
the portfolios in comparison to their respective benchmark returns. The charts
assume investment at each portfolio's inception date and track performance
though December 31, 1997.
<PAGE>
WNL Series Trust
BEA Growth and Income Portfolio
vs.
50% S&P 500 / 50% Lehman Aggregate
Comparative Performance of $10,000 Investment at 10/20/95
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEPT TO
PORTFOLIO 10/20/95 12/31/95 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97 12/31/97
- ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
BEA 10,000.00 10,657.07 10,871.86 11,265.98 11,679.10 12,129.59 12,172.23 13,529.37 14,609.88 14,838.74
--------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
S&P 500 / LEHMAN 10,000.00 10,397.85 10,585.02 10,890.00 11,164.00 11,759.97 11,885.80 13,139.76 13,819.08 14,226.75
- ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C>
INCEPT TO
PORTFOLIO 1997 12/31/97
- ---------------- ----- ---------
BEA 22.34 19.62
- ---------------- ----- ---------
S&P 500 / LEHMAN 20.98 17.36
- ---------------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
----- ---------
<S> <C> <C>
BEA 22.34 19.62
S&P 500 / Lehman 20.98 17.36
- ---------------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
-----------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $ 7,387,968
Net Asset Value per Share $ 12.72
Manager BEA Associates
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The S&P 500 / Lehman Aggregate does not include any
expenses.
<PAGE>
WNL Series Trust
Credit Suisse International Equity Portfolio
vs.
Morgan Stanley Composite Index - EAFE
Comparative Performance of $10,000 Investment at 10/20/95
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DATE
PORTFOLIO 10/20/95 12/31/95 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
CREDIT SUISSE 10,000.00 10,392.82 11,090.15 11,575.36 11,743.30 12,107.37 12,533.41 14,100.20 14,096.23
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
MORGAN STANLEY - EAFE 10,000.00 10,595.00 10,622.00 10,847.00 10,800.00 11,061.97 10,841.84 12,202.49 12,073.14
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C>
INCEPT TO
PORTFOLIO 12/31/97 1997 12/31/97
- --------------------- --------- ----- ---------
CREDIT SUISSE 12,628.52 4.30 11.18
- --------------------- --------- ----- ---------
MORGAN STANLEY - EAFE 10,846.51 -1.95 3.76
- --------------------- --------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
------ ---------
<S> <C> <C>
Credit Suisse 4.30 11.18
Morgan Stanley - EAFE (1.95) 3.76
- --------------------- ------ ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
----------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $4,310,217
Net Asset Value per Share $ 10.35
Manager Credit Suisse Asset
Management Ltd.
---------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The Morgan Stanley Composite Index - EAFE does not
include any expenses.
<PAGE>
WNL Series Trust
EliteValue Asset Allocation Portfolio
vs.
Lipper Benchmark / Flexible Portfolio Funds
Comparative Performance of $10,000 Investment at 1/2/96
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEPT TO INCEPT TO
PORTFOLIO 1/2/96 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97 12/31/97 1997 12/31/97
- ------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----- ---------
ELITEVALUE 10,000.00 10,706.44 10,935.58 11,595.62 12,669.85 12,758.30 14,251.32 15,344.89 15,341.26 21.08 23.86
- ------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----- ---------
LIPPER / FLEX 10,000.00 10,285.00 10,567.00 10,794.00 11,407.00 11,386.47 12,539.92 13,382.60 13,545.87 18.75 16.39
- ------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
----- ---------
<S> <C> <C>
EliteValue 21.08 23.86
Lipper / Flex 18.75 16.39
- ------------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
----------------------------
<S> <C>
Date of Inception 1/2/96
Net Assets $9,470,621
Net Asset Value per Share $ 14.38
Manager OpCap Advisors
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The Lipper Benchmark / Flexible Portfolio Funds does
not include any expenses.
<PAGE>
WNL Series Trust
Global Advisors Growth Equity Portfolio
vs.
Standard & Poor's 500 / Stock Index
Comparative Performance of $10,000 Investment at 10/20/95
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DATE
PORTFOLIO 10/20/95 12/31/95 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97
- ---------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
GLOBAL ADV. GROWTH EQ. 10,000.00 10,356.78 10,852.72 11,414.02 11,623.71 12,569.22 12,569.60 14,704.98 16,371.35
--------- --------- --------- --------- --------- --------- --------- --------- ---------
S&P 500 / STOCK INDEX 10,000.00 10,532.00 11,104.94 11,605.77 11,960.91 12,962.04 13,310.72 15,632.11 16,802.95
- ---------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C>
INCEPT TO
PORTFOLIO 12/31/97 1997 12/31/97
- ---------------------- --------- ----- ---------
GLOBAL ADV. GROWTH EQ. 16,550.05 31.67 25.70
- ---------------------- --------- ----- ---------
S&P 500 / STOCK INDEX 17,285.20 33.35 28.20
- ---------------------- --------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
----- ---------
<S> <C> <C>
Global Adv. Growth Eq. 31.67 25.70
S&P 500 / Stock Index 33.35 28.20
- ---------------------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
-----------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $7,327,106
Net Asset Value per Share $ 14.07
Manager State Street Global
Advisors
--------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The Standard & Poor's 500 / Stock Index does not
include any expenses.
<PAGE>
WNL Series Trust
Global Advisors Money Market Portfolio
vs.
91-Day Treasury Bill Index (Auction Average)
Comparative Performance of $10,000 Investment at 10/10/95
WNL SERIES TRUST
Inception-to-Date Total Returns
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DATE
PORTFOLIO 10/10/95 12/31/95 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
MONEY MARKET 10,000.00 10,117.26 10,240.47 10,366.75 10,503.63 10,642.27 10,782.67 10,927.33 11,077.55
--------- --------- --------- --------- --------- --------- --------- --------- ---------
91-DAY TREASURY INDEX 10,000.00 10,135.61 10,264.16 10,393.62 10,530.37 10,663.37 10,795.60 10,930.54 11,066.08
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C>
INCEPT TO
PORTFOLIO 12/31/97 1997 12/31/97
- --------------------- --------- ---- ---------
MONEY MARKET 11,227.63 5.50 5.33
- --------------------- --------- ---- ---------
91-DAY TREASURY INDEX 11,211.04 5.14 5.26
- --------------------- --------- ---- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
---- ---------
<S> <C> <C>
Money Market 5.50 5.33
91-Day Treasury Index 5.14 5.26
- --------------------- ---- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
----------------------------
<S> <C>
Date of Inception 10/10/95
Net Assets $5,100,264
Net Asset Value per Share $ 1.00
Manager State Street Global
Advisors
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The 91-Day Treasury Index does not include any
expenses.
As with all money market funds, an investment in the Global Advisors Money
Market Portfolio is neither insured nor guaranteed by the U.S. Government.
Although the Portfolio strives to maintain a stable net asset value of $1.00 per
share, there can be no assurance that this objective will be met.
<PAGE>
WNL Series Trust
Salomon Brothers U.S. Government Securities Portfolio
vs.
Treasury 1 to 10 Year Index
Comparative Performance of $10,000 Investment at 2/6/96
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEPT TO
PORTFOLIO 2/6/96 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97 12/31/97 1997
- -------------------------- --------- --------- -------- --------- --------- --------- --------- --------- --------- ----
SALOMON 10,000.00 9,813.18 9,872.93 10,073.49 10,340.05 10,362.37 10,686.91 10,989.41 11,258.78 8.89
--------- --------- -------- --------- --------- --------- --------- --------- --------- ----
TREASURY 1 TO 10 YR. INDEX 10,000.00 9,848.00 9,915.00 10,102.00 10,455.00 10,457.09 10,788.58 11,088.50 11,335.78 8.42
- -------------------------- --------- --------- -------- --------- --------- --------- --------- --------- --------- ----
<S> <C>
INCEPT TO
PORTFOLIO 12/31/97
- -------------------------- ---------
SALOMON 6.42
- -------------------------- ---------
TREASURY 1 TO 10 YR. INDEX 6.81
- -------------------------- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
---- ---------
<S> <C> <C>
Salomon 8.89 6.42
Treasury 1 to 10 Yr. Index 8.42 6.81
- -------------------------- ---- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
-----------------------------
<S> <C>
Date of Inception 2/6/96
Net Assets $3,985,898
Net Asset Value per Share $ 10.07
Manager Salomon Brothers
Asset Management
----------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The Treasury 1 to 10 Year Index does not include any
expenses.
<PAGE>
WNL Series Trust
Van Kampen American Capital Emerging Growth Portfolio
vs.
Lipper Benchmark / Mid-Cap Funds
Comparative Performance of $10,000 Investment at 1/2/96
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEPT TO
PORTFOLIO 1/2/96 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97 12/31/97 1997
- ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----
AMERICAN CAPITAL 10,000.00 10,791.13 11,957.31 12,377.42 11,906.29 10,989.41 12,949.78 15,114.92 14,340.93 20.45
--------- --------- --------- --------- --------- --------- --------- --------- --------- -----
LIPPER / MID-CAP 10,000.00 10,757.00 11,221.00 11,511.00 11,628.00 10,803.57 12,518.10 14,285.66 13,602.80 16.98
- ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----
<S> <C>
INCEPT TO
PORTFOLIO 12/31/97
- ---------------- ---------
AMERICAN CAPITAL 19.75
- ---------------- ---------
LIPPER / MID-CAP 16.63
- ---------------- ---------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return *
-----------------------------
One Since
Year Inception
----- ---------
<S> <C> <C>
American Capital 20.45 19.75
Lipper / Mid-Cap 16.98 16.63
- ---------------- ----- ---------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997 Fund Facts
----------------------------
<S> <C>
Date of Inception 1/2/96
Net Assets $5,498,534
Net Asset Value per Share $ 13.87
Manager Van Kampen American
Capital Asset Management, Inc.
------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by Western National Life Insurance Company.
Had these expenses not been absorbed, the total returns would have been lower.
Performance data represent past performance and neither guarantee nor predict
future results. The investment return and accumulation value of the portfolios
will fluctuate, and the redemption value may be higher or lower than an
investor's original cost. The Lipper Benchmark / Mid-Cap Funds does not include
any expenses.
<PAGE>
WNL SERIES TRUST
FINANCIAL SCHEDULES
DECEMBER 31, 1997
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-47.0%
AEROSPACE-1.3%
Coltec Industries Incorporated (a). . . 2,500 $ 57,969
Lockheed Martin Corporation . . . . . . 400 39,400
--------
97,369
--------
AIR TRAVEL-1.2%
AMR Corporation (a) . . . . . . . . . . 700 89,950
--------
BUSINESS SERVICES-2.1%
Automatic Data Processing Incorporated. 1,500 92,062
GTECH Holdings Corporation (a). . . . . 2,000 63,875
--------
155,937
--------
COMPUTERS & BUSINESS EQUIPMENT-1.8%
DST Systems Incorporated (a). . . . . . 1,800 76,837
Symbol Technologies Incorporated. . . . 1,500 56,625
--------
133,462
--------
CONSTRUCTION MATERIALS-1.1%
Sherwin-Williams Company. . . . . . . . 3,000 83,250
--------
CONSTRUCTION & MINING EQUIPMENT-0.7%
Caterpillar Incorporated. . . . . . . . 1,000 48,563
--------
CONTAINERS & GLASS-2.4%
Ivex Packaging Corporation (a). . . . . 5,000 120,000
Owens Illinois Incorporated (a) . . . . 1,500 56,906
--------
176,906
--------
DRUGS & HEALTH CARE-4.3%
Barr Laboratories Incorporated (a). . . 2,000 68,250
i-STAT Corporation (a). . . . . . . . . 2,500 39,531
IVAX Corporation (a). . . . . . . . . . 6,000 40,500
Smithkline Beecham PLC ADR. . . . . . . 1,600 82,300
Warner-Lambert Company. . . . . . . . . 700 86,800
--------
317,381
--------
ELECTRICAL EQUIPMENT-1.1%
Emerson Electric Company. . . . . . . . 1,400 79,012
--------
FINANCE & BANKING-1.2%
Charles Schwab Corporation. . . . . . . 2,100 88,069
North Fork Bancorporation Incorporated. 100 3,356
--------
91,425
--------
FINANCIAL SERVICES-1.3%
Crescent Operating Incorporated (a) . . 2,500 61,250
Merrill Lynch & Company Incorporated. . 500 36,469
--------
97,719
--------
FOOD & BEVERAGES-2.6%
Hershey Foods Corporation . . . . . . . 1,000 61,938
Sysco Corporation . . . . . . . . . . . 2,000 91,125
Wrigley (WM) Jr. Company. . . . . . . . 500 39,781
--------
192,844
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
GAS EXPLORATION-0.9%
Burlington Resources Incorporated. . . . . . . 1,500 $67,219
-------
HOUSEHOLD APPLIANCES & HOME FURNISHINGS-0.9%
Newell Company . . . . . . . . . . . . . . . . 1,500 63,750
-------
HOUSEHOLD PRODUCTS-0.9%
Clorox Company . . . . . . . . . . . . . . . . 800 63,250
-------
INDUSTRIAL MACHINERY-3.6%
Dover Corporation. . . . . . . . . . . . . . . 2,400 86,700
General Electric Company . . . . . . . . . . . 1,200 88,050
Tyco International Limited . . . . . . . . . . 2,000 90,125
-------
264,875
-------
INSURANCE-5.5%
ACE Limited. . . . . . . . . . . . . . . . . . 800 77,200
American International Group Incorporated. . . 800 87,000
EXEL Limited . . . . . . . . . . . . . . . . . 1,200 76,050
Mutual Risk Management Limited . . . . . . . . 2,500 74,844
Vesta Insurance Group Incorporated . . . . . . 1,500 89,062
-------
404,156
-------
INTERNATIONAL OIL-1.9%
Exxon Corporation. . . . . . . . . . . . . . . 1,200 73,425
Mobil Corporation. . . . . . . . . . . . . . . 900 64,969
-------
138,394
-------
MANUFACTURING-0.6%
Illinois Tool Works Incorporated . . . . . . . 800 48,100
-------
MULTIMEDIA-1.3%
Time Warner Incorporated . . . . . . . . . . . 1,500 93,000
-------
NEWSPAPERS-0.8%
Gannett Company Incorporated . . . . . . . . . 1,000 61,813
-------
PAPER-0.7%
Schweitzer-Mauduit International Incorporated. 1,400 52,150
-------
PLASTICS-1.0%
Sealed Air Corporation (a) . . . . . . . . . . 1,200 74,100
-------
PUBLISHING-1.6%
Hollinger International Incorporated . . . . . 4,000 56,000
Tribune Company. . . . . . . . . . . . . . . . 1,000 62,250
-------
118,250
-------
REAL ESTATE-2.0%
Equity Office Property Trust . . . . . . . . . 2,500 78,906
TriNet Corporate Realty Trust Incorporated . . 1,700 65,769
-------
144,675
-------
SOFTWARE-1.2%
Microsoft Corporation (a). . . . . . . . . . . 700 90,475
-------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- -------------------------------------------- --------- ---------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
TELECOMMUNICATIONS-1.1%
AirTouch Communications Incorporated (a) . 2,000 $83,125
---------
TRANSPORTATION-0.9%
Canadian Pacific Limited . . . . . . . . . 1,000 27,250
Norfolk Southern Corporation . . . . . . . 1,300 40,056
---------
67,306
---------
TRUCKING & FREIGHT FORWARDING-1.0%
Federal Express Corporation (a). . . . . . 1,200 73,275
---------
TOTAL COMMON STOCKS-(Cost $2,771,271). . . . 3,471,731
---------
PRINCIPAL
AMOUNT
---------
MUNICIPALS-0.8%
Municipal Electric Authority Georgia
5.00%, 01/01/2026 $30,000 29,293
New Jersey Economic Development Authority
0.00%, 02/15/2008 # 10,000 5,296
7.425%, 02/15/2029 20,000 21,911
---------
TOTAL MUNICIPALS-(Cost $53,544). . . . . . . 56,500
---------
CORPORATE BONDS-5.9%
BROADCASTING-0.6%
Belo (A.H.) Corporation
6.875%, 06/01/2002 . . . . . . . . . . . . 20,000 20,379
Cablevision Systems Corporation
7.875%, 12/15/2007 . . . . . . . . . . . . 10,000 10,200
Turner Broadcasting Systems Incorporated
7.40%, 02/01/2004. . . . . . . . . . . . . 10,000 10,414
---------
40,993
---------
COMPUTERS & BUSINESS EQUIPMENT-0.3%
Seagate Technology Incorporated
7.45%, 03/01/2037. . . . . . . . . . . . . 20,000 20,540
---------
DRUGS & HEALTH CARE-0.9%
Merck & Company Incorporated
5.76%, 05/03/2037. . . . . . . . . . . . . 55,000 56,601
Tenet Healthcare Corporation
8.625%, 12/01/2003 . . . . . . . . . . . . 10,000 10,425
---------
67,026
---------
ELECTRIC UTILITIES-1.0%
Beaver Valley II Funding Corporation
9.00%, 06/01/2017. . . . . . . . . . . . . 30,000 33,353
Long Island Lighting Company
9.00%, 11/01/2022. . . . . . . . . . . . . 20,000 22,331
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ---------------------------------------- ---------- -------
<S> <C> <C>
CORPORATE BONDS-(CONTINUED)
ELECTRIC UTILITIES-(CONTINUED)
Niagara Mohawk Power Corporation
8.75%, 04/01/2022. . . . . . . . . . . $ 10,000 $10,737
North Atlantic Energy Corporation
9.05%, 06/01/2002. . . . . . . . . . . 10,000 10,276
-------
76,697
-------
FINANCE & BANKING-1.9%
A T & T Capital Corporation
6.275%, 06/09/1998 . . . . . . . . . . 25,000 25,038
6.47%, 12/03/2099. . . . . . . . . . . 15,000 15,059
Bellsouth Capital Funding Corporation
6.04%, 11/15/2026. . . . . . . . . . . 60,000 61,354
General Motors Acceptance Corporation
6.625%, 04/24/2000 . . . . . . . . . . 30,000 30,285
UCC Investors Holding Incorporated
0.00%, 05/01/2005 #. . . . . . . . . . 5,000 4,862
-------
136,598
-------
LEISURE TIME-0.8%
Time Warner Incorporated
6.85%, 01/15/2026. . . . . . . . . . . 50,000 51,171
7.57%, 02/01/2024. . . . . . . . . . . 10,000 10,462
-------
61,633
-------
PETROLEUM SERVICES-0.1%
Cliffs Drilling Company
10.25%, 05/15/2003 . . . . . . . . . . 10,000 10,800
-------
TELECOMMUNICATIONS-0.1%
ICG Holdings Incorporated
0.00%, 05/01/2006 #. . . . . . . . . . 10,000 7,550
-------
TRANSPORTATION-0.2%
Norfolk Southern Corporation
7.05%, 05/01/2037. . . . . . . . . . . 15,000 15,854
-------
TOTAL CORPORATE BONDS-(Cost $425,391). . 437,691
-------
FOREIGN CORPORATE BONDS-1.7%
BROADCASTING-0.3%
Bell Cablemedia PLC
0.00%, 09/15/2005 #. . . . . . . . . . 10,000 8,861
Rogers Cantel Incorporated
9.375%, 06/01/2008 . . . . . . . . . . 10,000 10,550
-------
19,411
-------
FINANCE & BANKING-0.4%
Midland Bank
6.1875%, 12/31/1999. . . . . . . . . . 20,000 17,119
National Bank of Australia
6.40%, 12/10/2007. . . . . . . . . . . 10,000 10,004
-------
27,123
-------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ----------------------------------------------- ---------- -------
<S> <C> <C>
FOREIGN CORPORATE BONDS-(CONTINUED)
FINANCIAL SERVICES-0.4%
Auxiliaire Credit Foncier
5.75%, 10/22/2002 . . . . . . . . . . . . . . $ 10,000 $ 9,990
Credit Foncier De France
8.00%, 01/14/2002 . . . . . . . . . . . . . . 10,000 10,470
Indah Kiat International Finance Company BV
11.875%, 06/15/2002 . . . . . . . . . . . . . 10,000 9,550
-------
30,010
-------
INDUSTRIALS-0.4%
Osuuspankkien Kesk
6.4063%, 09/29/2049 . . . . . . . . . . . . . 10,000 9,825
Repap New Brunswick Incorporated
10.625%, 04/15/2005 . . . . . . . . . . . . . 20,000 19,000
-------
28,825
-------
TELECOMMUNICATIONS-0.2%
Videotron Holdings PLC
0.00%, 08/15/2005 # . . . . . . . . . . . . . 20,000 17,690
-------
TOTAL FOREIGN CORPORATE BONDS-(Cost $123,891) . 123,059
-------
FOREIGN GOVERNMENT BONDS-1.3%
Federal Republic of Brazil
8.00%, 04/15/2014 . . . . . . . . . . . . . . 17,239 13,532
Government of Poland
4.00%, 10/27/2014 . . . . . . . . . . . . . . 50,000 43,187
4.00%, 10/27/2014 . . . . . . . . . . . . . . 10,000 8,638
Republic of Argentina
9.50%, 11/30/2002 . . . . . . . . . . . . . . 30,000 29,786
-------
TOTAL FOREIGN GOVERNMENT BONDS-(Cost $95,528) . 95,143
-------
ASSET-BACKED SECURITIES-4.5%
FINANCE & BANKING-1.8%
Green Tree Financial Corporation
Series 1997-3, Class A3, 6.73%, 07/15/2028. . 35,000 35,361
Mellon Bank Credit Card Master
Series 1995-A, Class A, 6.1705%, 04/15/2003 . 35,000 35,044
Metris Master Trust
Series 1997-1, Class A, 6.87%, 10/20/2005 . . 15,000 15,431
Sears Credit Account Master Trust II
Series 1996-1, Class A, 6.20%, 02/16/2006 . . 25,000 25,047
Series 1997-1, Class A, 6.20%, 07/16/2007 . . 25,000 24,984
-------
135,867
-------
FINANCIAL SERVICES-2.4%
Advanta Credit Card Master Trust
Series 1995-F, Class A2, 6.1705%, 08/01/2003. 40,000 39,987
American Express Credit Account Master Trust
Series 1997-1, Class A, 6.40%, 04/15/2005 . . 10,000 10,135
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- --------------------------------------------------- ---------- -------
<S> <C> <C>
ASSET-BACKED SECURITIES-(CONTINUED)
FINANCIAL SERVICES-(CONTINUED)
Chase Manhattan Credit Card Master
Series 1996-3, Class A, 7.04%, 02/15/2005 . . . . $ 25,000 $ 25,719
First USA Credit Card Master Trust
Series 1997-6, Class A, 6.42%, 03/17/2005 . . . . 20,000 20,275
Merrill Lynch Mortgage Investments Incorporated
Series 1997-C1, Class A3, 7.12%, 06/18/2029 . . . 10,000 10,406
Nationscredit Grantor Trust
Series 1996-1, Class A, 5.85%, 09/15/2011 . . . . 14,826 14,760
Standard Credit Card Master Trust I
Series 1994-2, Class A, 7.25%, 04/07/2008 . . . . 15,000 15,867
Series 1994-4, Class A, 8.25%, 11/07/2003 . . . . 15,000 16,069
Structured Asset Securities Corporation
Series 1996-CFL, Class A1C, 5.944%, 02/25/2028. . 8,364 8,292
Toyota Auto Lease Trust
Series 1997-A, Class A-2, 6.35%, 04/26/2004 . . . 15,000 15,028
--------
176,538
--------
INDUSTRIALS-0.3%
California Infrastructure SDG&E
Series 1997-1, Class A-7, 6.37%, 12/26/2009 . . . 10,000 10,012
Series 1997-1, Class A6, 6.31%, 09/25/2008. . . . 10,000 10,025
--------
20,037
--------
TOTAL ASSET-BACKED SECURITIES-(Cost $331,953). . . 332,442
--------
SHARES
--------
PREFERRED STOCK-0.2%
FINANCE & BANKING-0.2%
(Cost $18,095)
California Federal Preferred Capital Corporation. 700 18,375
--------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT AND AGENCY SECURITIES-26.0%
FEDERAL AGENCIES-9.1%
Federal Home Loan Mortgage Corporation
6.00%, 08/15/2007 . . . . . . . . . . . . . . . . $ 25,000 24,838
6.50%, 01/01/2013 TBA . . . . . . . . . . . . . . 165,000 165,257
7.00%, 03/01/2011 . . . . . . . . . . . . . . . . 19,925 20,294
7.00%, 12/01/2011 . . . . . . . . . . . . . . . . 34,191 34,825
7.00%, 05/01/2012 . . . . . . . . . . . . . . . . 23,891 24,299
8.50%, 05/01/2017 . . . . . . . . . . . . . . . . 28,297 29,890
8.50%, 07/01/2021 . . . . . . . . . . . . . . . . 21,025 22,208
Federal National Mortgage Association
6.00%, 12/01/2004 TBA . . . . . . . . . . . . . . 55,000 54,123
6.50%, 01/01/2028 TBA . . . . . . . . . . . . . . 200,000 197,500
7.00%, 12/01/2009 . . . . . . . . . . . . . . . . 16,828 17,139
7.00%, 03/01/2011 . . . . . . . . . . . . . . . . 36,047 36,673
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
BEA GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES-(CONTINUED)
FEDERAL AGENCIES-(CONTINUED)
Government National Mortgage Association
9.00%, 10/15/2017 . . . . . . . . . . . . . . . . . . . . . . $ 12,836 $ 13,966
Tennessee Valley Authority
5.88%, 04/01/2036 . . . . . . . . . . . . . . . . . . . . . . 30,000 31,044
----------
672,056
----------
U.S. GOVERNMENT-16.9%
United States Treasury Bonds
7.125%, 02/15/2023. . . . . . . . . . . . . . . . . . . . . . 25,000 28,539
7.625%, 02/15/2025. . . . . . . . . . . . . . . . . . . . . . 290,000 351,941
United States Treasury Notes
5.625%, 10/31/1999. . . . . . . . . . . . . . . . . . . . . . 30,000 29,972
6.25%, 06/30/2002 . . . . . . . . . . . . . . . . . . . . . . 175,000 178,472
7.50%, 02/15/2005 . . . . . . . . . . . . . . . . . . . . . . 20,000 21,981
7.75%, 11/30/1999 . . . . . . . . . . . . . . . . . . . . . . 345,000 357,775
7.875%, 11/15/2004. . . . . . . . . . . . . . . . . . . . . . 250,000 279,493
----------
1,248,173
----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES-(Cost $1,888,850) 1,920,229
----------
REPURCHASE AGREEMENT-17.9%
(Cost $1,325,000)
State Street Bank and Trust Company, 4.00% dated
12/31/97, to be repurchased at $1,325,294 on 01/02/98,
collateralized by $1,350,000 par value U.S. Treasury Note,
5.625% due 11/30/1999, with a value of $1,353,375 . . . . . . 1,325,000 1,325,000
----------
TOTAL INVESTMENTS-(COST $7,033,523*)-105.3%. . . . . . . . . . 7,780,170
----------
OTHER ASSETS LESS LIABILITIES-(5.3)%. . . . . . . . . . . . . . (392,202)
----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . . . . . . . . $7,387,968
==========
<FN>
(a)-Non-income producing security
ADR-American Depositary Receipt
TBA-To Be Announced
#-Adjustable rate bond, indicates rate currently in effect.
- - Securities pledged as collateral for the Federal Home Loan Mortgage Corporation and
Federal National Mortgage Association TBA Purchase Commitments.
*-Aggregate cost for Federal tax purposes is $7,035,945. Aggregate gross
unrealized appreciation for all securities in which there is an excess of value over
tax cost and aggregate gross unrealized depreciation for all securities in which there
is an excess of tax cost over value were $806,237 and $62,012, respectively, resulting
in net unrealized appreciation of $744,225.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-86.8%
AUSTRALIA-1.6%
Brambles Industries Limited . . . . . . . . 1,000 $ 19,846
Foster's Brewing Group Limited. . . . . . . 10,500 19,982
Southcorp Holdings Limited. . . . . . . . . 5,120 16,952
Telstra Corporation Limited (a). . . . . . 6,000 12,670
--------
69,450
--------
BRAZIL-2.7%
Telecomunicacoes Brasileiras S/A-Telebras . 1,000 116,437
--------
CANADA-0.4%
Rogers Communications Incorporated (a) . . 4,000 18,894
--------
CHILE-2.0%
Five Arrows Chile Investment Trust Limited. 20,000 50,000
Genesis Chile Fund. . . . . . . . . . . . . 1,000 37,500
--------
87,500
--------
CROATIA-0.8%
Pliva D.D. GDR. . . . . . . . . . . . . . . 2,000 35,300
--------
CZECH REPUBLIC-3.3%
Ateso AS. . . . . . . . . . . . . . . . . . 2,000 23,651
Deza Valasske Mezirici AS . . . . . . . . . 1,000 69,392
Galena AS . . . . . . . . . . . . . . . . . 600 32,615
Prerovske Strojirny AS. . . . . . . . . . . 2,500 7,489
Zdar nad Sazavou AS . . . . . . . . . . . . 483 7,122
--------
140,269
--------
FRANCE-8.0%
Alcatel Alsthom SA. . . . . . . . . . . . . 250 31,777
AXA SA. . . . . . . . . . . . . . . . . . . 513 39,695
Carrefour SA. . . . . . . . . . . . . . . . 33 17,217
Cie de Saint Gobain . . . . . . . . . . . . 200 28,412
Cie Generale de Eaux. . . . . . . . . . . . 175 24,425
Cofinec GDR (a). . . . . . . . . . . . . . 3,000 47,250
Rhone-Poulenc (India) Limited . . . . . . . 750 33,597
Sanofi SA . . . . . . . . . . . . . . . . . 275 30,614
Societe BIC SA. . . . . . . . . . . . . . . 346 25,255
Total SA. . . . . . . . . . . . . . . . . . 319 34,717
Valeo SA. . . . . . . . . . . . . . . . . . 465 31,538
--------
344,497
--------
GERMANY-4.2%
Bayerische Motoren Werke AG . . . . . . . . 42 31,402
Dresdner Bank AG. . . . . . . . . . . . . . 685 31,604
Hoechst AG. . . . . . . . . . . . . . . . . 810 28,367
Mannesmann AG . . . . . . . . . . . . . . . 73 36,886
Siemens AG. . . . . . . . . . . . . . . . . 515 30,489
Volkswagen AG . . . . . . . . . . . . . . . 38 21,377
--------
180,125
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------- ------- -------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
HONG KONG-3.3%
Beijing Datang Power Generation Company Limited. . . . . . . . 43,000 $19,699
China Light & Power Company Limited. . . . . . . . . . . . . . 4,000 22,197
China Telecom (Hong Kong) Limited (a) . . . . . . . . . . . . 8,000 13,731
Citic Pacific Limited. . . . . . . . . . . . . . . . . . . . . 4,000 15,899
Hang Seng Bank Limited . . . . . . . . . . . . . . . . . . . . 1,300 12,540
Hong Kong Telecommunications Limited . . . . . . . . . . . . . 10,000 20,583
Hutchison Whampoa Limited. . . . . . . . . . . . . . . . . . . 3,000 18,815
New World Development Company Limited. . . . . . . . . . . . . 5,000 17,293
--------
140,757
--------
HUNGARY-2.5%
Intermediate Europa Bank Right . . . . . . . . . . . . . . . . 200 18,409
MOL Magyar Olaj-es Gazipari GDR. . . . . . . . . . . . . . . . 600 14,640
North American Business Intelligence Systems Incorporated (a) 1,600 39,169
Primagaz Hungaria Company Limited. . . . . . . . . . . . . . . 1,000 33,734
--------
105,952
--------
INDIA-2.1%
India Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 88,500
--------
INDONESIA-0.3%
Gulf Indonesia Resources Limited (a). . . . . . . . . . . . . 430 9,460
PT Gudang Garam. . . . . . . . . . . . . . . . . . . . . . . . 3,500 5,330
--------
14,790
--------
ISRAEL-0.8%
Koor Industries Limited ADR. . . . . . . . . . . . . . . . . . 1,500 32,906
--------
ITALY-3.0%
Banco Ambrosiano Veneto SPA (a) . . . . . . . . . . . . . . . 5,530 22,499
Banco Ambrosiano Veneto SPA RTS (a) . . . . . . . . . . . . . 2,400 1,498
Ente Nazionale Idrocarburi SPA . . . . . . . . . . . . . . . . 5,820 32,999
Telecom Italia Mobile (TIM) SPA. . . . . . . . . . . . . . . . 9,100 42,002
Telecom Italia SPA . . . . . . . . . . . . . . . . . . . . . . 5,050 32,258
--------
131,256
--------
JAPAN-16.4%
Advantest. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 56,675
Amada Company. . . . . . . . . . . . . . . . . . . . . . . . . 3,000 11,143
Bank of Tokyo Mitsubishi Limited . . . . . . . . . . . . . . . 1,000 13,786
Banyu Pharmaceutical Company . . . . . . . . . . . . . . . . . 2,000 22,057
Daiwa Securities . . . . . . . . . . . . . . . . . . . . . . . 8,000 27,571
East Japan Railway . . . . . . . . . . . . . . . . . . . . . . 6 27,066
Eisai Company. . . . . . . . . . . . . . . . . . . . . . . . . 1,500 22,861
Fanuc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 37,834
Fujitsu Limited. . . . . . . . . . . . . . . . . . . . . . . . 3,000 32,167
Honda Motor Company. . . . . . . . . . . . . . . . . . . . . . 1,000 36,685
Japan Airport Terminal . . . . . . . . . . . . . . . . . . . . 2,000 12,560
Japan Tobacco Incorporated . . . . . . . . . . . . . . . . . . 5 35,460
Maeda Road Construction. . . . . . . . . . . . . . . . . . . . 2,000 7,965
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------ ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
JAPAN-(CONTINUED)
Mitsubishi Heavy Industries. . . . . . . . . . 5,000 $ 20,832
NEC Corporation. . . . . . . . . . . . . . . . 4,000 42,583
Nippon Telegraph & Telephone . . . . . . . . . 9 77,200
Nitto Denko Corporation. . . . . . . . . . . . 2,000 34,464
Nomura Securities Limited. . . . . . . . . . . 2,000 26,652
Santen Pharmaceutical Company. . . . . . . . . 1,210 13,901
Sanwa Bank Limited . . . . . . . . . . . . . . 2,000 20,219
Sony Corporation . . . . . . . . . . . . . . . 1,000 88,841
Sumitomo Osaka Cement Company Limited. . . . . 7,000 8,792
Terumo Corporation . . . . . . . . . . . . . . 2,000 29,410
--------
706,724
--------
MALAYSIA-0.7%
Kuala Lumpur Kepong. . . . . . . . . . . . . . 6,000 12,881
Magnum Corporation Bhd.. . . . . . . . . . . . 9,000 5,415
YTL Corporation Bhd. . . . . . . . . . . . . . 8,000 10,798
--------
29,094
--------
NETHERLANDS-3.7%
ABN Amro Holding NV. . . . . . . . . . . . . . 1,360 26,494
ING Groep NV . . . . . . . . . . . . . . . . . 708 29,819
Royal Dutch Petroleum Company. . . . . . . . . 610 33,484
Unilever NV. . . . . . . . . . . . . . . . . . 580 35,756
Vendex International . . . . . . . . . . . . . 590 32,560
--------
158,113
--------
PERU-1.6%
Telefonica del Peru ADR. . . . . . . . . . . . 3,000 69,937
--------
PHILIPPINES-0.2%
SM Prime Holdings. . . . . . . . . . . . . . . 55,000 8,148
--------
PORTUGAL-0.8%
EDP-Electricidade de Portugal SA (a). . . . . 1,765 33,420
--------
RUSSIA-3.5%
AO Tatneft ADR . . . . . . . . . . . . . . . . 800 114,400
Surgutneftegaz . . . . . . . . . . . . . . . . 3,825 38,250
--------
152,650
--------
SINGAPORE-1.2%
Singapore Press Holdings Limited . . . . . . . 2,000 25,037
Singapore Technologies Engineering Limited (a) 36,045 27,159
--------
52,196
--------
SLOVAKIA-1.1%
Slovenske Lodenice AS. . . . . . . . . . . . . 700 7,059
Vychodoslovenske Zeleziarne AS . . . . . . . . 2,000 38,845
--------
45,904
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------------- ----------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
SPAIN-2.2%
Banco Bilbao Vizcaya SA . . . . . . . . . . . . 1,050 $ 33,978
Iberdrola SA. . . . . . . . . . . . . . . . . . 2,280 30,006
Telefonica de Espana. . . . . . . . . . . . . . 1,065 30,408
----------
94,392
----------
SWEDEN-1.3%
Atlas Copco AB. . . . . . . . . . . . . . . . . 1,000 29,786
Electrolux AB . . . . . . . . . . . . . . . . . 400 27,759
----------
57,545
----------
SWITZERLAND-3.8%
Ciba Specialty Chemicals (a) . . . . . . . . . 310 36,915
Nestle SA . . . . . . . . . . . . . . . . . . . 28 41,946
Novartis AG . . . . . . . . . . . . . . . . . . 27 43,793
Schweizerische Rueckversicherungs-Gesellschaft. 22 41,133
----------
163,787
----------
THAILAND-0.2%
Electricity Generating Public Company Limited . 5,000 9,346
----------
UNITED KINGDOM-14.9%
Asda Group PLC. . . . . . . . . . . . . . . . . 18,350 53,983
Boots Company PLC . . . . . . . . . . . . . . . 3,150 45,349
Compass Group PLC . . . . . . . . . . . . . . . 2,500 30,756
Electrocomponents PLC . . . . . . . . . . . . . 4,000 29,762
EMI Group PLC . . . . . . . . . . . . . . . . . 2,394 19,975
Fleming Russia Securities Fund Limited (a) . . 5,000 109,400
General Accident PLC. . . . . . . . . . . . . . 2,400 43,165
GKN PLC . . . . . . . . . . . . . . . . . . . . 2,300 47,109
Lloyds TSB Group PLC. . . . . . . . . . . . . . 3,450 44,883
Pearson PLC . . . . . . . . . . . . . . . . . . 5,420 70,418
Provident Financial PLC . . . . . . . . . . . . 2,850 37,449
Shell Transport & Trading Company . . . . . . . 5,700 39,977
TI Group PLC. . . . . . . . . . . . . . . . . . 4,040 31,055
Wolseley PLC. . . . . . . . . . . . . . . . . . 5,020 39,900
----------
643,181
----------
UNITED STATES-0.2%
Electric Fuel Corporation (a). . . . . . . . . 2,500 9,063
----------
TOTAL COMMON STOCKS-(Cost $3,742,161) . . . . . . 3,740,133
----------
PRINCIPAL
AMOUNT
---------
CORPORATE BONDS-0.4%
(Cost $20,000)
CHINA-0.4%
Qingling Motors Company
3.50% 01/22/2002. . . . . . . . . . . . . . . . $ 20,000 17,950
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------------------- ---------- ----------
<S> <C> <C>
WARRANTS-1.4%
FRANCE-0.0%
Cie Generale de Eaux (a) . . . . . . . . . . . . . . . . 175 $ 119
----------
JAPAN-1.4%
Fleming Japan Investor (a) . . . . . . . . . . . . . . . 60,000 12,565
Schroder Japan Growth Fund (a) . . . . . . . . . . . . . 175,000 45,990
----------
58,555
----------
TOTAL WARRANTS-(Cost $180,131). . . . . . . . . . . . . . . 58,674
----------
PREFERRED STOCKS-1.5%
GERMANY-0.8%
Henkel KGaA . . . . . . . . . . . . . . . . . . . . . . . 535 33,755
----------
UNITED KINGDOM -0.7%
ING Baring Financial Products (a). . . . . . . . . . . . 504 32,504
----------
TOTAL PREFERRED STOCKS-(Cost $80,940) . . . . . . . . . . . 66,259
----------
PRINCIPAL
AMOUNT
----------
REPURCHASE AGREEMENT-8.9%
(Cost $385,000)
State Street Bank and Trust Company, 2.00% dated
12/31/97, to be repurchased at $385,043 on 01/02/98,
collateralized by $395,000 par value U.S. Treasury Bond,
5.625% due 11/30/1999, with a value of $395,988 . . . . . $ 385,000 385,000
----------
TOTAL INVESTMENTS-(COST $4,408,232*) 99.0%. . . . . . . . 4,268,016
----------
OTHER ASSETS LESS LIABILITIES-1.0%. . . . . . . . . . . . 42,201
----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . . . . . $4,310,217
----------
<FN>
(a)-Non-income producing security
GDR-Global Depositary Receipt
ADR-American Depositary Receipt
RTS- Rights
*-Aggregate cost for Federal tax purposes is $4,413,694. Aggregate gross
unrealized appreciation for all securities in which there is an excess of value
over tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $548,744 and $694,422,
respectively, resulting in net unrealized depreciation of $145,678.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
ANALYSIS OF INDUSTRY CLASSIFICATIONS
DECEMBER 31, 1997
PERCENT OF
INDUSTRY NET ASSETS
- ------------------------------------------------ -----------
<S> <C>
Auto Parts . . . . . . . . . . . . . . . . . . 1.6%
Automobiles. . . . . . . . . . . . . . . . . . 2.5
Banks. . . . . . . . . . . . . . . . . . . . . 5.2
Broadcasting . . . . . . . . . . . . . . . . . 0.4
Business Services. . . . . . . . . . . . . . . 1.9
Chemicals. . . . . . . . . . . . . . . . . . . 3.9
Computers & Business Equipment . . . . . . . . 0.8
Conglomerates. . . . . . . . . . . . . . . . . 2.5
Construction Materials . . . . . . . . . . . . 1.3
Construction & Mining Equipment. . . . . . . . 0.9
Containers & Glass . . . . . . . . . . . . . . 0.7
Drugs & Health Care. . . . . . . . . . . . . . 6.1
Electric Utilities . . . . . . . . . . . . . . 2.9
Electrical Equipment . . . . . . . . . . . . . 1.0
Electronics. . . . . . . . . . . . . . . . . . 4.3
Financial Services . . . . . . . . . . . . . . 5.5
Food & Beverages . . . . . . . . . . . . . . . 3.2
Household Appliances & Home Furnishings. . . . 2.7
Household Products . . . . . . . . . . . . . . 0.8
Industrial Machinery . . . . . . . . . . . . . 2.3
Insurance. . . . . . . . . . . . . . . . . . . 2.9
Investment Companies . . . . . . . . . . . . . 0.6
Leisure Time . . . . . . . . . . . . . . . . . 0.9
Liquor . . . . . . . . . . . . . . . . . . . . 0.5
Manufacturing. . . . . . . . . . . . . . . . . 0.2
Mining . . . . . . . . . . . . . . . . . . . . 0.2
Mutual Funds . . . . . . . . . . . . . . . . . 6.5
Office Furnishings & Supplies. . . . . . . . . 0.6
Oil & Gas. . . . . . . . . . . . . . . . . . . 5.7
Petroleum Services . . . . . . . . . . . . . . 2.5
Publishing . . . . . . . . . . . . . . . . . . 2.2
Railroads & Equipment. . . . . . . . . . . . . 0.6
Real Estate. . . . . . . . . . . . . . . . . . 0.6
Retail Trade . . . . . . . . . . . . . . . . . 3.5
Steel. . . . . . . . . . . . . . . . . . . . . 0.9
Telecommunications . . . . . . . . . . . . . . 11.1
Tobacco. . . . . . . . . . . . . . . . . . . . 0.1
-----------
TOTAL INVESTMENTS BY INDUSTRY CLASSIFICATION 90.1
Repurchase Agreement . . . . . . . . . . . . . 8.9
TOTAL INVESTMENTS. . . . . . . . . . . . . . 99.0%
===========
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
ELITE VALUE ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------- --------- ----------
<S> <C> <C>
COMMON STOCKS-78.7%
AEROSPACE-7.3%
Boeing Company. . . . . . . . . . . . . 5,000 $ 244,687
Lockheed Martin Corporation . . . . . . 4,500 443,250
----------
687,937
----------
APPAREL & TEXTILES-1.0%
Nike Incorporated . . . . . . . . . . . 2,500 98,125
----------
BROADCASTING & CABLE-3.0%
Tele-Communications Incorporated (a). . 10,000 283,125
----------
CHEMICALS-9.6%
Du Pont (E.I.) de Nemours & Company . . 6,500 390,406
Monsanto Company. . . . . . . . . . . . 8,500 357,000
Solutia Incorporated. . . . . . . . . . 6,000 160,125
----------
907,531
----------
COMMUNICATION SERVICES-1.1%
Loral Space & Communications (a). . . . 5,000 107,188
----------
CONSTRUCTION & MINING EQUIPMENT-3.6%
Caterpillar Incorporated. . . . . . . . 7,000 339,937
----------
DRUGS & HEALTH CARE-0.6%
Becton, Dickinson & Company . . . . . . 1,200 60,000
----------
ELECTRICAL EQUIPMENT-0.7%
Arrow Electronics Incorporated (a). . . 2,000 64,875
----------
ELECTRONICS-4.0%
Intel Corporation . . . . . . . . . . . 1,000 70,250
National Semiconductor Corporation (a). 12,000 311,250
----------
381,500
----------
FEDERAL AGENCIES-4.4%
Federal Home Loan Mortgage Corporation. 8,000 335,500
Federal National Mortgage Association . 1,400 79,887
----------
415,387
----------
FINANCE & BANKING-16.8%
BankBoston Corporation. . . . . . . . . 3,500 328,781
Citicorp. . . . . . . . . . . . . . . . 3,000 379,313
First Empire State Corporation. . . . . 800 372,000
Wells Fargo & Company . . . . . . . . . 1,500 509,156
----------
1,589,250
----------
FINANCIAL SERVICES-1.3%
American Express Company. . . . . . . . 1,400 124,951
----------
FOOD & BEVERAGES-2.4%
Diageo PLC ADR. . . . . . . . . . . . . 6,000 227,250
----------
GAS EXPLORATION-0.6%
Triton Energy Limited (a) . . . . . . . 2,000 58,375
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
ELITE VALUE ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- --------- ----------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
HOTELS & RESTAURANTS-4.5%
McDonald's Corporation. . . . . . . . . . . . . 9,000 $ 429,750
----------
INSURANCE-2.6%
ACE Limited . . . . . . . . . . . . . . . . . . 1,600 154,400
EXEL Limited. . . . . . . . . . . . . . . . . . 1,400 88,725
----------
243,125
----------
MANUFACTURING-2.7%
Tenneco Incorporated. . . . . . . . . . . . . . 2,000 79,000
Varian Associates Incorporated. . . . . . . . . 3,500 176,969
----------
255,969
----------
MULTIMEDIA-4.9%
Time Warner Incorporated. . . . . . . . . . . . 7,500 465,000
----------
PAPER-3.4%
Champion International Corporation. . . . . . . 7,000 317,188
----------
SOFTWARE-2.5%
Computer Associates International Incorporated. 4,500 237,938
----------
TOYS & AMUSEMENTS-1.7%
Mattel Incorporated . . . . . . . . . . . . . . 4,300 160,175
----------
TOTAL COMMON STOCKS-(Cost $6,523,751) . . . . . . 7,454,576
----------
PRINCIPAL
AMOUNT
---------
DISCOUNT NOTES-21.2%
FEDERAL AGENCIES-21.2%
Federal Farm Credit Bank
5.40%, 01/09/1998** . . . . . . . . . . . . . . $1,070,000 1,068,716
5.65%, 01/15/1998** . . . . . . . . . . . . . . 190,000 189,582
Federal Home Loan Bank
5.48%, 01/09/1998** . . . . . . . . . . . . . . 450,000 449,452
5.63%, 01/09/1998** . . . . . . . . . . . . . . 200,000 199,750
5.70%, 01/02/1998** . . . . . . . . . . . . . . 100,000 99,984
----------
TOTAL DISCOUNT NOTES-(Cost $2,007,484) .. . . . . 2,007,484
----------
TOTAL INVESTMENTS-(COST $8,531,235*)-99.9% . . . 9,462,060
----------
OTHER ASSETS LESS LIABILITIES-0.1%. . . . . . . . 8,561
----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . $9,470,621
==========
<FN>
(a)-Non-income producing security
ADR-American Depositary Receipt
**-The rate shown reflects the current yield at December 31, 1997
*-Aggregate cost for Federal tax purposes is $8,534,208. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax cost and
aggregate gross unrealized depreciation for all securities in which there is an excess of
tax cost over value were $1,143,143 and $215,291, respectively, resulting in net unrealized
appreciation of $927,852.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-98.7%
AEROSPACE-2.3%
General Dynamics Corporation . . . . . . . . 700 $ 60,506
Litton Industries Incorporated (a) . . . . . 300 17,250
Raytheon Company . . . . . . . . . . . . . . 45 2,202
United Technologies Corporation. . . . . . . 1,200 87,375
--------
167,333
--------
APPAREL & TEXTILES-0.4%
Intimate Brands Incorporated . . . . . . . . 600 14,437
Liz Claiborne Incorporated . . . . . . . . . 100 4,181
VF Corporation . . . . . . . . . . . . . . . 200 9,188
--------
27,806
--------
AUTOMOBILES-3.6%
Chrysler Corporation . . . . . . . . . . . . 500 17,594
Ford Motor Company . . . . . . . . . . . . . 3,900 189,881
General Motors Corporation . . . . . . . . . 700 42,437
PACCAR Incorporated. . . . . . . . . . . . . 300 15,750
--------
265,662
--------
BANKS-9.6%
AmSouth Bancorporation . . . . . . . . . . . 700 38,019
BankAmerica Corporation. . . . . . . . . . . 1,800 131,400
Bankers Trust New York Corporation . . . . . 700 78,706
Chase Manhattan Corporation. . . . . . . . . 400 43,800
Citicorp . . . . . . . . . . . . . . . . . . 900 113,794
Comerica Incorporated. . . . . . . . . . . . 1,000 90,250
First Union Corporation. . . . . . . . . . . 1,800 92,250
National City Corporation. . . . . . . . . . 600 39,450
Republic New York Corporation. . . . . . . . 600 68,512
Southtrust Corporation . . . . . . . . . . . 100 6,344
--------
702,525
--------
BROADCASTING-0.4%
Belo (A.H.) Corporation. . . . . . . . . . . 500 28,063
--------
BUSINESS SERVICES-0.7%
Accustaff Incorporated (a) . . . . . . . . . 2,100 48,300
--------
CHEMICALS-2.7%
Dow Chemical Company . . . . . . . . . . . . 900 91,350
Lubrizol Corporation . . . . . . . . . . . . 800 29,500
Lyondell Petrochemical Company . . . . . . . 2,900 76,850
--------
197,700
--------
COMPUTERS & BUSINESS EQUIPMENT-2.8%
Compaq Computer Corporation. . . . . . . . . 1,600 90,300
Dell Computer Corporation (a). . . . . . . . 100 8,400
Lexmark International Group Incorporated (a) 300 11,400
Quantum Corporation (a). . . . . . . . . . . 400 8,025
Storage Technology Corporation (a) . . . . . 1,400 86,712
--------
204,837
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
CONGLOMERATES-0.9%
Aeroquip-Vickers Incorporated . . . . . . . . . . . . 100 $ 4,906
Cooper Industries Incorporated. . . . . . . . . . . . 1,200 58,800
--------
63,706
--------
CONSTRUCTION MATERIALS-0.1%
USG Corporation (a) . . . . . . . . . . . . . . . . . 100 4,900
--------
CONSTRUCTION & MINING EQUIPMENT-1.2%
Case Corporation. . . . . . . . . . . . . . . . . . . 400 24,175
Caterpillar Incorporated. . . . . . . . . . . . . . . 1,300 63,131
--------
87,306
--------
DIVERSIFIED-1.3%
Deere & Company . . . . . . . . . . . . . . . . . . . 1,600 93,300
--------
DOMESTIC OIL-0.8%
Atlantic Richfield Company. . . . . . . . . . . . . . 200 16,025
Pennzoil Company. . . . . . . . . . . . . . . . . . . 100 6,681
Phillips Petroleum Company. . . . . . . . . . . . . . 600 29,175
USX-Marathon Group. . . . . . . . . . . . . . . . . . 100 3,375
--------
55,256
--------
DRUGS & HEALTH CARE-9.7%
Abbott Labortories. . . . . . . . . . . . . . . . . . 400 26,225
Allegiance Corporation. . . . . . . . . . . . . . . . 200 7,088
American Home Products Corporation. . . . . . . . . . 800 61,200
Bristol Myers Squibb Company. . . . . . . . . . . . . 1,900 179,787
Cardinal Health Incorporated. . . . . . . . . . . . . 400 30,050
Lincare Holdings Incorporated (a) . . . . . . . . . . 100 5,700
McKesson Corporation. . . . . . . . . . . . . . . . . 400 43,275
Merck & Company Incorporated. . . . . . . . . . . . . 1,200 127,500
Schering-Plough Corporation . . . . . . . . . . . . . 3,000 186,375
Wellpoint Health Networks Incorporated (a). . . . . . 1,000 42,250
--------
709,450
--------
ELECTRIC UTILITIES-2.2%
Consolidated Edison Company of New York Incorporated. 500 20,500
Entergy Corporation . . . . . . . . . . . . . . . . . 600 17,962
FirstEnergy Corporation (a) . . . . . . . . . . . . . 400 11,600
Illinova Corporation. . . . . . . . . . . . . . . . . 200 5,388
Long Island Lighting Company. . . . . . . . . . . . . 500 15,063
New York State Electric & Gas Corporation . . . . . . 500 17,750
PP&L Resources Incorporated . . . . . . . . . . . . . 800 19,150
Public Service Enterprise Group . . . . . . . . . . . 1,500 47,531
Unicom Corporation. . . . . . . . . . . . . . . . . . 200 6,150
--------
161,094
--------
ELECTRONICS-4.3%
Applied Materials Incorporated (a). . . . . . . . . . 2,500 75,312
AVX Corporation . . . . . . . . . . . . . . . . . . . 600 11,062
Honeywell Incorporated. . . . . . . . . . . . . . . . 600 41,100
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
ELECTRONICS-(CONTINUED)
Intel Corporation. . . . . . . . . . . . . . . . . 1,600 $112,400
National Semiconductor Corporation (a) . . . . . . 1,300 33,719
SCI Systems Incorporated (a) . . . . . . . . . . . 200 8,713
Tektronix Incorporated . . . . . . . . . . . . . . 650 25,797
Texas Instruments Incorporated . . . . . . . . . . 200 9,000
--------
317,103
--------
FEDERAL AGENCIES-2.0%
Federal National Mortgage Association. . . . . . . 2,600 148,363
--------
FINANCIAL SERVICES-7.5%
Allstate Corporation . . . . . . . . . . . . . . . 1,600 145,400
American Express Company . . . . . . . . . . . . . 1,900 169,575
Bear Stearns Companies Incorporated. . . . . . . . 100 4,750
Donaldson, Lufkin & Jenrette Incorporated. . . . . 700 55,650
Lehman Brothers Holdings Incorporated. . . . . . . 600 30,600
Morgan Stanley, Dean Witter, Discover and Company. 1,200 70,950
SLM Holding Corporation. . . . . . . . . . . . . . 500 69,562
The Money Store Incorporated . . . . . . . . . . . 200 4,200
--------
550,687
--------
FOOD & BEVERAGES-5.4%
Campbell Soup Company. . . . . . . . . . . . . . . 1,800 104,625
Coca-Cola Company. . . . . . . . . . . . . . . . . 1,100 73,287
ConAgra Incorporated . . . . . . . . . . . . . . . 1,600 52,500
Dean Foods Company . . . . . . . . . . . . . . . . 400 23,800
Dole Food Company Incorporated . . . . . . . . . . 300 13,725
Interstate Bakeries Corporation. . . . . . . . . . 2,200 82,225
Quaker Oats Company. . . . . . . . . . . . . . . . 800 42,200
--------
392,362
--------
GAS EXPLORATION-0.1%
Apache Corporation . . . . . . . . . . . . . . . . 100 3,506
Union Texas Petroleum Holdings Incorporated. . . . 200 4,163
--------
7,669
--------
HOUSEHOLD PRODUCTS-0.8%
Premark International Incorporated . . . . . . . . 400 11,600
Procter & Gamble Company . . . . . . . . . . . . . 600 47,888
--------
59,488
--------
INDUSTRIAL MACHINERY-4.4%
Cummins Engine Company Incorporated. . . . . . . . 200 11,813
General Electric Company . . . . . . . . . . . . . 3,500 256,812
Parker-Hannifin Corporation. . . . . . . . . . . . 500 22,938
Timken Company . . . . . . . . . . . . . . . . . . 900 30,937
--------
322,500
--------
INSURANCE-0.9%
Equitable Companies Incorporated . . . . . . . . . 900 44,775
Everest Reinsurance Holdings Incorporated. . . . . 200 8,250
Marsh & McLennan Companies Incorporated. . . . . . 100 7,456
Travelers Property Casualty Corporation. . . . . . 100 4,400
--------
64,881
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
INTERNATIONAL OIL-6.1%
Amoco Corporation. . . . . . . . . . . . . . 1,000 $ 85,125
Chevron Corporation. . . . . . . . . . . . . 800 61,600
Exxon Corporation. . . . . . . . . . . . . . 2,700 165,206
Mobil Corporation. . . . . . . . . . . . . . 1,300 93,844
Texaco Incorporated. . . . . . . . . . . . . 800 43,500
--------
449,275
--------
LEISURE TIME-0.3%
Walt Disney Company. . . . . . . . . . . . . 200 19,813
--------
MANUFACTURING-0.4%
Trinity Industries Incorporated. . . . . . . 600 26,775
--------
NEWSPAPERS-1.7%
Gannett Company Incorporated . . . . . . . . 1,200 74,175
Washington Post Company. . . . . . . . . . . 100 48,650
--------
122,825
--------
PAPER-0.1%
Fort James Corporation . . . . . . . . . . . 250 9,563
--------
PETROLEUM SERVICES-1.7%
ENSCO International Incorporated . . . . . . 100 3,350
Global Marine Incorporated (a) . . . . . . . 100 2,450
Noble Drilling Corporation (a) . . . . . . . 100 3,063
Occidental Petroleum Corporation . . . . . . 3,400 99,662
Rowan Companies Incorporated (a) . . . . . . 100 3,050
Tidewater Incorporated . . . . . . . . . . . 300 16,538
--------
128,113
--------
POLLUTION CONTROL-0.3%
Browning-Ferris Industries Incorporated. . . 700 25,900
--------
PUBLISHING-0.9%
Valassis Communications Incorporated (a) . . 1,800 66,600
--------
RETAIL GROCERY-1.2%
Albertson's Incorporated . . . . . . . . . . 1,700 80,538
Kroger Company (a) . . . . . . . . . . . . . 300 11,081
--------
91,619
--------
RETAIL TRADE-6.7%
Costco Companies Incorporated (a). . . . . . 2,300 102,637
Dayton Hudson Corporation. . . . . . . . . . 700 47,250
Federated Department Stores Incorporated (a) 1,600 68,900
Lowe's Companies, Incorporated . . . . . . . 700 33,381
Ross Stores Incorporated . . . . . . . . . . 600 21,825
TJX Companies Incorporated (New) . . . . . . 2,700 92,813
Toys "R" Us Incorporated (a) . . . . . . . . 2,500 78,594
Wal Mart Stores Incorporated . . . . . . . . 1,200 47,325
--------
492,725
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------ ---------- ----------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
SOFTWARE-4.8%
BMC Software Incorporated (a). . . . . . . . . . . . 500 $ 32,812
Cadence Design Systems Incorporated (a). . . . . . . 1,400 34,300
Computer Associates International Incorporated . . . 1,950 103,106
Compuware Corporation (a). . . . . . . . . . . . . . 1,200 38,400
Microsoft Corporation (a). . . . . . . . . . . . . . 1,000 129,250
Network Associates Incorporated (a). . . . . . . . . 300 15,863
----------
353,731
----------
STEEL-0.8%
Bethleham Steel Corporation (a). . . . . . . . . . . 800 6,900
USX-US Steel Group Incorporated. . . . . . . . . . . 1,600 50,000
----------
56,900
----------
TELECOMMUNICATIONS-7.5%
Ameritech Corporation. . . . . . . . . . . . . . . . 1,100 88,550
AT&T Corporation . . . . . . . . . . . . . . . . . . 2,200 134,750
Bell Atlantic Corporation. . . . . . . . . . . . . . 1,460 132,860
BellSouth Corporation. . . . . . . . . . . . . . . . 900 50,681
GTE Corporation. . . . . . . . . . . . . . . . . . . 500 26,125
SBC Communications Incorporated. . . . . . . . . . . 738 54,059
Southern New England Telecommunications Corporation. 100 5,031
US West Communications Group . . . . . . . . . . . . 1,300 58,662
----------
550,718
----------
TOBACCO-1.5%
Philip Morris Companies Incorporated . . . . . . . . 2,500 113,281
----------
TRUCKING & FREIGHT FORWARDING-0.6%
CNF Transportation Incorporated. . . . . . . . . . . 100 3,838
Ryder Systems Incorporated . . . . . . . . . . . . . 1,200 39,300
----------
43,138
----------
TOTAL COMMON STOCKS-(Cost $6,145,503). . . . . . . . . 7,231,267
----------
MUTUAL FUNDS-3.8%
(Cost $275,523)
Dreyfus Cash Management Plus Fund. . . . . . . . . . 275,523 275,523
----------
TOTAL INVESTMENTS-(COST $6,421,026*)-102.5% . . . . . 7,506,790
----------
OTHER ASSETS LESS LIABILITIES-(2.5)% . . . . . . . . . (179,684)
----------
NET ASSETS-100.0%. . . . . . . . . . . . . . . . . . . $7,327,106
==========
<FN>
(a)-Non-income producing security
*-Aggregate cost for Federal tax purposes is $6,426,647. Aggregate gross
unrealized appreciation for all securities in which there is an excess of value
over tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $1,167,652 and $87,509,
respectively, resulting in net unrealized appreciation of $1,080,143.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ------------------------------------------ ---------- ----------
<S> <C> <C>
DISCOUNT NOTES-36.3%
FEDERAL AGENCIES-31.4%
Federal Farm Credit Bank
5.90%, 04/01/1998. . . . . . . . . . . . . $ 250,000 $ 250,019
Federal Home Loan Bank
5.70%, 03/18/1998**. . . . . . . . . . . . 130,000 128,436
5.90%, 01/13/1998**. . . . . . . . . . . . 400,000 399,213
5.97%, 08/27/1998. . . . . . . . . . . . . 25,000 24,985
7.93%, 01/20/1998. . . . . . . . . . . . . 450,000 450,417
Federal National Mortgage Association
5.69%, 02/05/1998**. . . . . . . . . . . . 100,000 99,447
5.82%, 02/05/1998**. . . . . . . . . . . . 250,000 248,585
----------
1,601,102
----------
FEDERALLY CHARTERED-4.9%
Student Loan Marketing Association
5.79%, 09/16/1998. . . . . . . . . . . . . 250,000 249,837
----------
TOTAL DISCOUNT NOTES-(Cost $1,850,939) . . 1,850,939
----------
COMMERCIAL PAPER-41.7%
AUTOMOBILES-2.9%
Daimler-Benz of North America Corporation
5.63%, 04/22/1998**. . . . . . . . . . . . 150,000 147,396
----------
BANK FOREIGN-4.4%
Canadian Imperial Bank of Commerce
5.685%, 03/02/1998 . . . . . . . . . . . . 90,000 89,952
Royal Bank of Canada
5.875%, 03/10/1998 . . . . . . . . . . . . 135,000 134,995
----------
224,947
----------
BANK MULTINATIONAL-1.8%
Citibank NA
5.96%, 06/05/1998**. . . . . . . . . . . . 96,934 94,446
----------
BANK REGIONAL-8.8%
Comerica Bank
6.75%, 05/12/1998. . . . . . . . . . . . . 150,000 150,469
Fleet Financial Group Incorporated
6.00%, 10/26/1998. . . . . . . . . . . . . 200,000 199,974
Old Kent Bank & Trust Company
6.875%, 04/15/1998 . . . . . . . . . . . . 100,000 100,137
----------
450,580
----------
BEVERAGES-3.9%
Pepsico Incorporated
6.125%, 01/15/1998 . . . . . . . . . . . . 200,000 200,005
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------- ----------- ----------
<S> <C> <C>
COMMERCIAL PAPER-(CONTINUED)
BROKERAGE-3.9%
Merrill Lynch & Company Incorporated
5.75%, 02/24/1998** . . . . . . . . . . . . . . . . . . . . $ 200,000 $ 198,275
----------
CONGLOMERATES-2.9%
General Electric Capital Corporation
5.71%, 05/01/1998** . . . . . . . . . . . . . . . . . . . . 150,000 147,145
----------
FINANCE CAPTIVE-7.9%
IBM Credit Corporation
5.72%, 01/08/1998** . . . . . . . . . . . . . . . . . . . . 200,000 199,778
Toyota Motor Corporation
5.625%, 03/17/1998. . . . . . . . . . . . . . . . . . . . . 202,000 201,822
----------
401,600
----------
FINANCE NON-CAPTIVE CONSUMER-1.7%
Norwest Financial Incorporated
5.50%, 04/15/1998 . . . . . . . . . . . . . . . . . . . . . 85,000 84,788
----------
SOVEREIGN-3.5%
KFW International Finance Incorporated
5.67%, 03/26/1998** . . . . . . . . . . . . . . . . . . . . 180,000 177,619
----------
TOTAL COMMERCIAL PAPER-(Cost $2,126,801). . . . . . . . . . . 2,126,801
----------
REPURCHASE AGREEMENT-22.0%
(Cost $1,123,000)
Aubrey Lanston Government, 6.50% dated
12/31/1997 to be repurchased at $1,123,405 on 01/02/98,
collateralized by $1,130,000 par value U.S. Treasury Note,
6.75% due 06/30/1999, with a value of $1,145,538. . . . . . 1,123,000 1,123,000
----------
TOTAL INVESTMENTS-(COST $5,100,740*)-100.0%. . . . . . . . . 5,100,740
----------
OTHER ASSETS LESS LIABILITIES-0.0%. . . . . . . . . . . . . . (476)
----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . . . . . . . $5,100,264
----------
<FN>
**-The rate shown reflects the current yield at December 31, 1997
*-Aggregate cost for Federal tax purposes is identical.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- --------------------------------------------------------------- ---------- ----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES-88.7%
FEDERAL AGENCIES-83.6%
Federal Home Loan Bank Consolidated Discount Note
5.75%, 01/07/1998** . . . . . . . . . . . . . . . . . . . . . $ 320,000 $ 319,693
Federal Home Loan Mortgage Corporation
5.00%, 05/15/2021 . . . . . . . . . . . . . . . . . . . . . . 143,000 133,123
5.89%, 07/24/2000 . . . . . . . . . . . . . . . . . . . . . . 225,000 225,387
6.50%, 12/01/TBA. . . . . . . . . . . . . . . . . . . . . . . 500,000 500,547
7.00%, 04/15/2021 . . . . . . . . . . . . . . . . . . . . . . 49,295 49,850
8.25%, 04/01/2017 . . . . . . . . . . . . . . . . . . . . . . 19,928 20,924
11.75%, 07/01/2006. . . . . . . . . . . . . . . . . . . . . . 9,089 10,093
11.75%, 07/01/2013. . . . . . . . . . . . . . . . . . . . . . 6,237 6,927
11.75%, 08/01/2013. . . . . . . . . . . . . . . . . . . . . . 5,255 5,291
Federal National Mortgage Association
6.50%, 08/01/2027 . . . . . . . . . . . . . . . . . . . . . . 249,090 245,977
6.50%, 12/01/TBA. . . . . . . . . . . . . . . . . . . . . . . 150,000 148,125
6.74%, 08/25/2007 . . . . . . . . . . . . . . . . . . . . . . 100,000 103,219
6.909%, 06/25/2016. . . . . . . . . . . . . . . . . . . . . . 50,000 51,328
7.00%, 05/01/2026 . . . . . . . . . . . . . . . . . . . . . . 185,903 187,645
7.00%, 12/01/TBA. . . . . . . . . . . . . . . . . . . . . . . 450,000 453,231
7.50%, 12/01/TBA. . . . . . . . . . . . . . . . . . . . . . . 75,000 76,757
11.50%, 09/01/2019. . . . . . . . . . . . . . . . . . . . . . 18,281 20,902
12.00%, 10/01/2015. . . . . . . . . . . . . . . . . . . . . . 67,472 78,450
12.00%, 01/01/2016. . . . . . . . . . . . . . . . . . . . . . 3,670 4,301
12.50%, 08/01/2015. . . . . . . . . . . . . . . . . . . . . . 6,316 7,439
12.50%, 09/01/2015. . . . . . . . . . . . . . . . . . . . . . 8,134 9,687
13.00%, 11/01/2015. . . . . . . . . . . . . . . . . . . . . . 16,109 19,305
14.50%, 11/01/2014. . . . . . . . . . . . . . . . . . . . . . 6,579 8,098
Government National Mortgage Association
7.50%, 05/15/2027 . . . . . . . . . . . . . . . . . . . . . . 123,750 126,766
7.50%, 09/15/2027 . . . . . . . . . . . . . . . . . . . . . . 199,999 204,873
9.00%, 10/20/2016 . . . . . . . . . . . . . . . . . . . . . . 73,505 79,453
Student Loan Marketing Association
7.20%, 11/09/2000 . . . . . . . . . . . . . . . . . . . . . . 225,000 233,051
---------
3,330,442
----------
U.S. GOVERNMENT-5.1%
United States Treasury Notes
5.875%, 09/30/2002. . . . . . . . . . . . . . . . . . . . . . 100,000 100,547
6.125%, 08/15/2007. . . . . . . . . . . . . . . . . . . . . . 50,000 51,383
6.25%, 08/31/2002 . . . . . . . . . . . . . . . . . . . . . . 50,000 51,023
----------
202,953
----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES-(Cost $3,496,271) . 3,533,395
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ----------------------------------------------------------- ----------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT-40.6%
J.P. Morgan & Company, 6.25% dated
12/31/97, to be repurchased at $810,281 on 01/02/98,
collateralized by $619,000 par value U.S. Treasury Bond,
8.75% due 05/15/2020, with a value of $826,365. . . . . . $ 810,000 $ 810,000
State Street Bank and Trust Company, 6.00% dated
12/31/97, to be repurchased at $809,270 on 01/02/98,
collateralized by $540,000 par value U.S. Treasury Bond,
10.625% due 8/15/2015, with a value of $831,433 . . . . . 809,000 809,000
-----------
TOTAL REPURCHASE AGREEMENT-(Cost $1,619,000). . . . . . . . 1,619,000
-----------
TOTAL INVESTMENTS-(COST $5,115,271*)-129.3%. . . . . . . . 5,152,395
-----------
OTHER ASSETS LESS LIABILITIES-(29.3)% . . . . . . . . . . . (1,166,497)
-----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . . . . . . $ 3,985,898
===========
<FN>
TBA-To Be Announced
**-The rate shown reflects the current yield at December 31, 1997
- - Securities pledged as collateral for the Federal National Mortgage Association
and Federal Home Loan Mortgage Corporation TBA Purchase Commitments.
*-Aggregate cost for Federal tax purposes is identical. Aggregate gross
unrealized appreciation for all securities in which there is an excess of value
over tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $38,916 and $1,792,
respectively, resulting in net unrealized appreciation of $37,124.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------ ------- --------
<S> <C> <C>
COMMON STOCKS-90.5%
AEROSPACE-0.3%
Precision Castparts Corporation. . . . . . . . 300 $ 18,094
--------
AIR TRAVEL-2.0%
Comair Holdings Incorporated . . . . . . . . . 450 10,856
Continental Airlines Incorporated (a). . . . . 550 26,469
SouthWest Airlines Company . . . . . . . . . . 1,125 27,703
US Airways Group Incorporated (a). . . . . . . 700 43,750
--------
108,778
--------
APPAREL & TEXTILES-0.6%
Jones Apparel Group Incorporated (a) . . . . . 300 12,900
Nautica Enterprises Incorporated (a) . . . . . 400 9,300
Wolverine World Wide Incorporated. . . . . . . 525 11,878
--------
34,078
--------
AUTO PARTS-0.6%
Danaher Corporation. . . . . . . . . . . . . . 325 20,516
Federal-Mogul Corporation. . . . . . . . . . . 300 12,150
--------
32,666
--------
BANKS-0.8%
Bank United Corporation. . . . . . . . . . . . 125 6,117
Cullen/Frost Bankers Incorporated. . . . . . . 200 12,138
National Commerce Bancorporation . . . . . . . 125 4,406
Silicon Valley Bancshares (a). . . . . . . . . 35 1,969
Star Banc Corporation. . . . . . . . . . . . . 325 18,647
--------
43,277
--------
BROADCASTING-2.5%
Chancellor Media Corporation (a) . . . . . . . 1,100 82,087
Clear Channel Communications Incorporated (a). 550 43,691
Jacor Communications Incorporated (a). . . . . 250 13,281
--------
139,059
--------
BUSINESS SERVICES-7.2%
Accustaff Incorporated (a) . . . . . . . . . . 275 6,325
America Online Incorporated (a). . . . . . . . 675 60,202
Apollo Group Incorporated (a). . . . . . . . . 500 23,625
Applied Graphics Technologies Incorporated (a) 225 11,981
Cambridge Technology Partners Incorporated (a) 425 17,691
Caribiner International Incorporated (a) . . . 350 15,575
Comdisco Incorporated. . . . . . . . . . . . . 425 14,211
Computer Horizons Corporation (a). . . . . . . 325 14,625
Consolidated Graphics Incorporated (a) . . . . 375 17,484
CORESTAFF Incorporated (a) . . . . . . . . . . 325 8,613
Interpublic Group of Companies Incorporated. . 600 29,887
Keane Incorporated (a) . . . . . . . . . . . . 700 28,437
Omnicom Group Incorporated . . . . . . . . . . 950 40,256
Outdoor Systems Incorporated (a) . . . . . . . 400 15,350
Paychex Incorporated . . . . . . . . . . . . . 300 15,188
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------ ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
BUSINESS SERVICES-(CONTINUED)
Robert Half International Incorporated (a) . . 650 $ 26,000
Saville Systems PLC ADR (a). . . . . . . . . . 400 16,600
StaffMark Incorporated (a) . . . . . . . . . . 150 4,744
SunGuard Data Systems Incorporated (a) . . . . 1,000 31,000
--------
397,794
--------
CHEMICALS-0.1%
Witco Corporation. . . . . . . . . . . . . . . 100 4,081
--------
COMMUNICATION SERVICES-1.8%
AirTouch Communications Incorporated (a) . . . 2,000 83,125
Brightpoint Incorporated (a) . . . . . . . . . 1,100 15,262
--------
98,387
--------
COMPUTERS & BUSINESS EQUIPMENT-6.0%
Apex PC Solutions Incorporated (a) . . . . . . 250 5,531
Compaq Computer Corporation. . . . . . . . . . 350 19,753
Computer Learning Centers Incorporated (a) . . 200 12,250
Dell Computer Corporation (a). . . . . . . . . 2,300 193,200
EMC Corporation (a). . . . . . . . . . . . . . 2,100 57,619
Network Appliance Incorporated (a) . . . . . . 200 7,100
SMART Modular Technologies Incorporated (a). . 500 11,500
Tech Data Corporation (a). . . . . . . . . . . 550 21,381
--------
328,334
--------
DRUGS & HEALTH CARE-14.1%
Arterial Vascular Engineering Incorporated (a) 650 42,250
Concentra Managed Care Incorporated (a). . . . 350 11,813
Curative Health Services Incorporated (a). . . 150 4,556
Dura Pharmaceuticals Incorporated (a). . . . . 1,050 48,169
ESC Medical Systems Limited (a). . . . . . . . 700 27,125
FPA Medical Management Incorporated (a). . . . 350 6,519
Guidant Corporation. . . . . . . . . . . . . . 1,225 76,256
Gulf South Medical Supply Incorporated (a) . . 200 7,450
HBO & Company. . . . . . . . . . . . . . . . . 2,900 139,200
Health Care & Retirement Corporation (a) . . . 300 12,075
Health Management Associates Incorporated (a). 1,300 32,825
HealthSouth Corporation (a). . . . . . . . . . 1,950 54,112
McKesson Corporation . . . . . . . . . . . . . 225 24,342
Medicis Pharmaceutical Corporation (a) . . . . 450 23,006
MiniMed Incorporated (a) . . . . . . . . . . . 250 9,719
Omnicare Incorporated. . . . . . . . . . . . . 1,150 35,650
Parexel International Corporation (a). . . . . 350 12,950
Quintiles Transnational Corporation (a). . . . 750 28,687
Renal Treatment Centers Incorporated (a) . . . 350 12,644
Rexall Sundown Incorporated (a). . . . . . . . 1,050 31,697
Safeskin Corporation (a) . . . . . . . . . . . 800 45,400
STERIS Corporation (a) . . . . . . . . . . . . 250 12,063
Sunrise Assisted Living Incorporated (a) . . . 150 6,469
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
DRUGS & HEALTH CARE-(CONTINUED)
Sybron International Corporation (a). . . . . 300 $ 14,081
Theragenics Corporation (a) . . . . . . . . . 300 10,800
Total Renal Care Holdings Incorporated (a). . 550 15,125
Universal Health Services Incorporated (a). . 325 16,372
Watson Pharmaceuticals Incorporated (a) . . . 450 14,597
--------
775,952
--------
ELECTRONICS-3.4%
ASM Lithography Holding NV (a). . . . . . . . 325 21,937
CHS Electronics Incorporated (a). . . . . . . 900 15,412
Digital Microwave Corporation (a) . . . . . . 650 9,425
DII Group Incorporated (a). . . . . . . . . . 150 4,088
Input/Output Incorporated (a) . . . . . . . . 200 5,938
Jabil Circuit Incorporated (a). . . . . . . . 425 16,894
Level One Communications Incorporated (a) . . 400 11,300
Micrel Incorporated (a) . . . . . . . . . . . 400 11,200
SIPEX Corporation (a) . . . . . . . . . . . . 300 9,075
Tekelec (a) . . . . . . . . . . . . . . . . . 250 7,625
Teradyne Incorporated (a) . . . . . . . . . . 650 20,800
Uniphase Corporation (a). . . . . . . . . . . 825 34,134
Vitesse Semiconductor Corporation (a) . . . . 575 21,706
--------
189,534
--------
FINANCE & BANKING-0.3%
North Fork Bancorporation Incorporated. . . . 475 15,942
--------
FINANCIAL SERVICES-2.6%
AmeriCredit Corporation (a) . . . . . . . . . 200 5,538
Astoria Financial Corporation . . . . . . . . 275 15,331
Capital One Financial Corporation . . . . . . 200 10,837
Finova Group Incorporated . . . . . . . . . . 950 47,203
Greenpoint Financial Corporation. . . . . . . 275 19,955
Providian Financial Corporation . . . . . . . 550 24,853
State Street Corporation. . . . . . . . . . . 300 17,456
--------
141,173
--------
FOOD & BEVERAGES-1.1%
Interstate Bakeries Corporation . . . . . . . 850 31,769
Smithfield Foods Incorporated (a) . . . . . . 350 11,550
Suiza Foods Corporation (a) . . . . . . . . . 255 15,188
--------
58,507
--------
HOTELS & RESTAURANTS-1.3%
CapStar Hotel Company (a) . . . . . . . . . . 175 6,005
CKE Restaurants Incorporated. . . . . . . . . 325 13,691
Foodmaker Incorporated (a). . . . . . . . . . 450 6,778
Landry's Seafood Restaurants Incorporated (a) 350 8,400
Promus Hotel Corporation (a). . . . . . . . . 581 24,412
Rainforest Cafe Incorporated (a). . . . . . . 400 13,200
--------
72,486
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
HOUSEHOLD APPLIANCES & HOME FURNISHINGS-0.2%
WestPoint Stevens Incorporated (a). . . . . . 275 $ 12,994
--------
INDUSTRIAL MACHINERY-1.6%
AES Corporation (a) . . . . . . . . . . . . . 725 33,803
Tyco International Limited. . . . . . . . . . 1,200 54,075
--------
87,878
--------
INSURANCE-2.9%
CMAC Investment Corporation . . . . . . . . . 525 31,697
Conseco Incorporated. . . . . . . . . . . . . 1,850 84,059
Everest Reinsurance Holdings Incorporated . . 200 8,250
Mercury General Corporation . . . . . . . . . 80 4,420
Protective Life Corporation . . . . . . . . . 200 11,950
SunAmerica Incorporated . . . . . . . . . . . 262 11,201
Transatlantic Holdings Incorporated . . . . . 75 5,363
Vesta Insurance Group Incorporated. . . . . . 65 3,859
--------
160,799
--------
INVESTMENT COMPANIES-0.2%
Lehman Brothers Holdings Incorporated . . . . 200 10,200
--------
LEISURE TIME-0.4%
Action Performance Companies Incorporated (a) 250 9,469
Signature Resorts Incorporated (a). . . . . . 600 13,125
--------
22,594
--------
LIQUOR-0.4%
Canandaigua Wine Company Incorporated (a) . . 425 23,534
--------
MANUFACTURING-0.3%
Halter Marine Group Incorporated (a). . . . . 625 18,047
--------
OFFICE FURNISHINGS & SUPPLIES-1.0%
Herman Miller Incorporated. . . . . . . . . . 725 39,558
U.S. Office Products Company (a). . . . . . . 650 12,756
--------
52,314
--------
OIL & GAS-0.1%
Comstock Resources Incorporated (a) . . . . . 500 5,969
--------
PETROLEUM SERVICES-9.2%
BJ Services Company (a) . . . . . . . . . . . 300 21,581
Cliffs Drilling Company (a) . . . . . . . . . 325 16,209
Coflexip SA . . . . . . . . . . . . . . . . . 275 15,263
Cooper Cameron Corporation (a). . . . . . . . 600 36,600
ENSCO International Incorporated. . . . . . . 1,850 61,975
EVI Incorporated (a). . . . . . . . . . . . . 900 46,575
Falcon Drilling Company Incorporated (a). . . 1,250 43,828
Global Industries Limited (a) . . . . . . . . 1,050 17,850
Key Energy Group Incorporated (a) . . . . . . 200 4,338
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
PETROLEUM SERVICES-(CONTINUED)
Marine Drilling Companies Incorporated (a) . 1,175 $ 24,381
Nabors Industries Incorporated (a) . . . . . 1,450 45,584
National-Oilwell Incorporated (a). . . . . . 400 13,675
Parker Drilling Company (a). . . . . . . . . 400 4,875
Patterson Energy Incorporated (a). . . . . . 225 8,705
Rowan Companies Incorporated (a) . . . . . . 1,500 45,750
Santa Fe International Corporation . . . . . 300 12,206
Smith International Incorporated (a) . . . . 675 41,428
Varco International Incorporated (a) . . . . 2,000 42,875
--------
503,698
--------
PLASTICS-0.2%
Sealed Air Corporation (a) . . . . . . . . . 175 10,806
--------
POLLUTION CONTROL-1.6%
Allied Waste Industries Incorporated (a) . . 950 22,147
Newpark Resources Incorporated (a) . . . . . 800 14,000
USA Waste Services Incorporated (a). . . . . 1,300 51,025
--------
87,172
--------
PUBLISHING-0.7%
Meredith Corporation . . . . . . . . . . . . 875 31,227
Valassis Communications Incorporated (a) . . 225 8,325
--------
39,552
--------
REAL ESTATE-0.2%
Starwood Lodging Trust . . . . . . . . . . . 175 10,128
--------
RETAIL GROCERY-1.0%
Safeway Incorporated (a) . . . . . . . . . . 350 22,138
Whole Foods Market Incorporated (a). . . . . 625 31,953
--------
54,091
--------
RETAIL TRADE-11.3%
Abercrombie & Fitch Company (a). . . . . . . 150 4,688
Barnes & Noble Incorporated (a). . . . . . . 750 25,031
Bed Bath & Beyond Incorporated (a) . . . . . 575 22,138
Best Buy Company Incorporated (a). . . . . . 750 27,656
Borders Group Incorporated (a) . . . . . . . 775 24,267
CompUSA Incorporated (a) . . . . . . . . . . 1,750 54,250
Consolidated Stores Corporation (a). . . . . 850 37,347
Costco Companies Incorporated (a). . . . . . 775 34,584
CVS Corporation. . . . . . . . . . . . . . . 375 24,023
Dollar General Corporation . . . . . . . . . 600 21,750
Dollar Tree Stores Incorporated (a). . . . . 275 11,378
Family Dollar Stores Incorporated. . . . . . 825 24,183
Fred Meyer Incorporated. . . . . . . . . . . 825 30,009
General Nutrition Companies Incorporated (a) 1,700 57,800
Kohl's Corporation (a) . . . . . . . . . . . 300 20,438
Linens `N Things Incorporated (a). . . . . . 400 17,450
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------- ------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
RETAIL TRADE-(CONTINUED)
Pacific Sunwear of California (a) . . . . . . . . 425 $ 12,564
Pier 1 Imports Incorporated . . . . . . . . . . . 950 21,494
Proffitt's Incorporated (a) . . . . . . . . . . . 1,000 28,437
Ross Stores Incorporated. . . . . . . . . . . . . 1,175 42,741
Stage Stores Incorporated (a) . . . . . . . . . . 400 14,950
TJX Companies Incorporated (New). . . . . . . . . 1,275 43,828
Williams-Sonoma Incorporated (a). . . . . . . . . 425 17,797
--------
618,803
--------
SAVINGS & LOAN-1.1%
Dime Bancorp Incorporated . . . . . . . . . . . . 300 9,075
Golden State Bancorp Incorporated (a) . . . . . . 325 12,147
H.F. Ahmanson & Company . . . . . . . . . . . . . 150 10,040
Peoples Heritage Financial Group Incorporated . . 250 11,500
Sovereign Bancorp Incorporated. . . . . . . . . . 400 8,300
St. Paul Bancorp Incorporated . . . . . . . . . . 400 10,500
--------
61,562
--------
SOFTWARE-10.6%
Aspect Development Incorporated (a) . . . . . . . 175 9,100
Baan Company NV (a) . . . . . . . . . . . . . . . 400 13,200
BMC Software Incorporated (a) . . . . . . . . . . 1,200 78,750
CBT Group PLC ADR (a) . . . . . . . . . . . . . . 350 28,744
Check Point Software Tech Ltd (a) . . . . . . . . 100 4,075
Ciber Incorporated (a). . . . . . . . . . . . . . 275 15,950
Citrix Systems Incorporated (a) . . . . . . . . . 650 49,400
Compuware Corporation (a) . . . . . . . . . . . . 3,000 96,000
HNC Software Incorporated (a) . . . . . . . . . . 250 10,750
Hyperion Software Corporation (a) . . . . . . . . 500 17,875
Information Management Resources Incorporated (a) 250 9,375
Legato Systems Incorporated (a) . . . . . . . . . 350 15,400
Manugistics Group Incorporated (a). . . . . . . . 300 13,388
Peoplesoft Incorporated (a) . . . . . . . . . . . 2,100 81,900
Siebel Systems Incorporated (a) . . . . . . . . . 575 24,042
Veritas Software Company (a). . . . . . . . . . . 600 30,600
Visio Corporation (a) . . . . . . . . . . . . . . 550 21,106
Wind River Systems (a). . . . . . . . . . . . . . 325 12,898
Yahoo! Incorporated (a) . . . . . . . . . . . . . 750 51,938
--------
584,491
--------
STEEL-0.3%
Maverick Tube Corporation (a) . . . . . . . . . . 425 10,758
Mueller Industries Incorporated (a) . . . . . . . 125 7,375
--------
18,133
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1997
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------------------- ---------- --------
<S> <C> <C>
COMMON STOCKS-(CONTINUED)
TELECOMMUNICATIONS-1.5%
Advanced Fibre Communications (a) . . . . . . . . . . . . 975 $ 28,397
CIENA Corporation (a) . . . . . . . . . . . . . . . . . . 400 24,450
NICE-Systems Limited (a). . . . . . . . . . . . . . . . . 200 8,400
World Access Incorporated (a) . . . . . . . . . . . . . . 350 8,356
Yurie Systems Incorporated (a). . . . . . . . . . . . . . 500 10,094
----------
79,697
----------
TRANSPORTATION-0.1%
Hvide Marine Incorporated (a) . . . . . . . . . . . . . . 250 6,438
----------
TRUCKING & FREIGHT FORWARDING-0.9%
Airbourne Freight Corporation . . . . . . . . . . . . . . 375 23,297
CNF Transportation Incorporated . . . . . . . . . . . . . 550 21,106
Expeditores International of Washington Incorporated. . . 100 3,850
----------
48,253
----------
TOTAL COMMON STOCKS-(Cost $4,126,179) . . . . . . . . . . . 4,975,295
PRINCIPAL
AMOUNT
---------
REPURCHASE AGREEMENT-8.3%
(Cost $455,000)
State Street Bank and Trust Company, 5.00% dated
12/31/97, to be repurchased at $455,126 on 01/02/98,
collateralized by $465,000 par value U.S. Treasury Bond,
4.75% due 10/31/1998, with a value of $465,380. . . . . . $ 455,000 455,000
TOTAL INVESTMENTS-(COST $4,581,179*)-98.8% . . . . . . . . 5,430,295
----------
OTHER ASSETS LESS LIABILITIES-1.2%. . . . . . . . . . . . . 68,239
----------
NET ASSETS-100.0% . . . . . . . . . . . . . . . . . . . . . $5,498,534
----------
<FN>
(a)-Non-income producing security
ADR-American Depositary Receipt
*-Aggregate cost for Federal tax purposes is $4,588,935. Aggregate gross
unrealized appreciation for all securities in which there is an excess of value
over tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $967,370 and $126,010,
respectively, resulting in net unrealized appreciation of $841,360.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
BEA CREDIT ELITE- GLOBAL
GROWTH SUISSE VALUE ADVISORS
AND INTERNATIONAL ASSET GROWTH
INCOME EQUITY ALLOCATION EQUITY
---------- --------------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value . . . . . . $6,455,170 $ 3,883,016 $ 9,462,060 $7,506,790
Repurchase agreements, at value . . . . . . . . 1,325,000 385,000 - -
---------- --------------- ------------ -----------
Total Investment (a) (Note 1) . . . . . . . . . 7,780,170 4,268,016 9,462,060 7,506,790
Cash, including foreign currency, at value. . . 522 40,379 5,294 23,085
Receivable for securities sold. . . . . . . . . 12,006 16,839 - 4,037
Receivable for forward contracts (Note 5) . . . - 11,336 - -
Interest receivable . . . . . . . . . . . . . . 29,139 681 - -
Dividends receivable. . . . . . . . . . . . . . 3,370 7,364 2,319 12,429
Receivable for fund shares sold . . . . . . . . 14,668 10,457 25,692 7,505
Receivable due from Adviser (Note 2). . . . . . 12,705 19,660 9,288 15,326
Prepaid insurance . . . . . . . . . . . . . . . 462 461 461 462
---------- --------------- ------------ -----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . 7,853,042 4,375,193 9,505,114 7,569,634
LIABILITIES
Payable for securities purchased. . . . . . . . 429,717 28,578 - 208,869
Payable for fund shares repurchased . . . . . . 7,108 2,258 9,802 4,983
Accounts payable and accrued expenses . . . . . 28,249 34,140 24,691 28,676
---------- --------------- ------------ -----------
TOTAL LIABILITIES . . . . . . . . . . . . . . 465,074 64,976 34,493 242,528
---------- --------------- ------------ -----------
NET ASSETS. . . . . . . . . . . . . . . . . . $7,387,968 $ 4,310,217 $ 9,470,621 $7,327,106
========== =============== ============ ===========
NET ASSETS CONSIST OF:
Par value (Note 4). . . . . . . . . . . . . . . $ 5,806 $ 4,166 $ 6,587 5,208
Paid-in capital (Note 4). . . . . . . . . . . . 6,588,919 4,461,869 8,545,283 6,250,532
Undistributed (distributions in excess of)
net investment income . . . . . . . . . . . . 2,697 (11,838) 14 -
Accumulated net realized gain (loss) on
investments, futures, and foreign currency
translations. . . . . . . . . . . . . . . . . 43,899 (14,123) (12,088) (14,398)
Net unrealized appreciation (depreciation) of:
Investments . . . . . . . . . . . . . . . . . 746,647 (140,216) 930,825 1,085,764
Foreign currency. . . . . . . . . . . . . . . - 10,359 - -
---------- --------------- ------------ -----------
NET ASSETS. . . . . . . . . . . . . . . . . $7,387,968 $ 4,310,217 $ 9,470,621 $7,327,106
========== =============== ============ ===========
Shares outstanding at end of period . . . . . . 580,614 416,640 658,676 520,790
Net asset value per share . . . . . . . . . . . $ 12.72 $ 10.35 $ 14.38 14.07
(a) Investments in securities and repurchase
agreements, at cost . . . . . . . . . . . . . $7,033,523 $ 4,408,232 $ 8,531,235 $6,421,026
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
SALOMON VAN KAMPEN
GLOBAL BROTHERS AMERICAN
ADVISORS U.S. CAPITAL
MONEY GOVERNMENT EMERGING
MARKET SECURITIES GROWTH
<S> <C> <C> <C>
ASSETS
Investments in securities, at value . . . . . . $5,100,740 $ 3,533,395 $4,975,295
Repurchase agreements, at value . . . . . . . . - 1,619,000 455,000
---------- ------------ -----------
Total Investment (a) (Note 1) . . . . . . . . . 5,100,740 5,152,395 5,430,295
Cash, including foreign currency, at value. . . 542 507 86
Receivable for securities sold. . . . . . . . . - - 22,925
Interest receivable . . . . . . . . . . . . . . 56,310 24,818 63
Dividends receivable. . . . . . . . . . . . . . - - 1,047
Receivable for fund shares sold . . . . . . . . 52,202 - 77,162
Receivable due from Adviser (Note 2). . . . . . 8,678 8,576 14,367
Prepaid insurance . . . . . . . . . . . . . . . 461 462 461
---------- ------------ -----------
TOTAL ASSETS. . . . . . . . . . . . . . . . 5,218,933 5,186,758 5,546,406
LIABILITIES
Payable for securities purchased. . . . . . . . - 1,178,236 9,037
Payable for fund shares repurchased . . . . . . 95,544 995 5,759
Accounts payable and accrued expenses . . . . . 23,125 21,629 33,076
---------- ------------ -----------
TOTAL LIABILITIES . . . . . . . . . . . . . 118,669 1,200,860 47,872
---------- ------------ -----------
NET ASSETS. . . . . . . . . . . . . . . . . $5,100,264 $ 3,985,898 $5,498,534
========== ============ ===========
NET ASSETS CONSIST OF:
Par value (Note 4). . . . . . . . . . . . . . . $ 51,003 $ 3,959 $ 3,965
Paid-in capital (Note 4). . . . . . . . . . . . 5,049,261 3,961,347 4,807,731
Undistributed (distributions in excess of)
net investment income . . . . . . . . . . . . - 139 298
Accumulated net realized loss on
investments and foreign currency
translations. . . . . . . . . . . . . . . . . - (16,671) (162,576)
Net unrealized appreciation (depreciation) of:
Investments . . . . . . . . . . . . . . . . . - 37,124 849,116
---------- ------------ -----------
NET ASSETS. . . . . . . . . . . . . . . . . $5,100,264 $ 3,985,898 $5,498,534
========== ============ ===========
Shares outstanding at end of period . . . . . . 5,100,264 395,899 396,522
Net asset value per share . . . . . . . . . . . $ 1.00 $ 10.07 $ 13.87
(a) Investments in securities and repurchase
agreements, at cost . . . . . . . . . . . . . $5,100,740 $ 5,115,271 $4,581,179
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
BEA CREDIT ELITE- GLOBAL
GROWTH SUISSE VALUE ADVISORS
AND INTERNATIONAL ASSET GROWTH
INCOME EQUITY ALLOCATION EQUITY
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . . $ 134,825 $ 8,358 $ 65,279 $ 6,254
Dividend income**. . . . . . . . . . . . . . 36,282 45,581 50,057 88,550
---------- --------------- ------------ -----------
TOTAL INVESTMENT INCOME. . . . . . . . . . 171,107 53,939 115,336 94,804
EXPENSES
Investment Advisory fees (Note 2). . . . . . 36,791 32,806 35,702 31,793
Sub-administration fees. . . . . . . . . . . 53,143 52,598 53,821 53,114
Audit fees . . . . . . . . . . . . . . . . . 12,500 13,550 14,275 14,275
Custodian fees and expenses. . . . . . . . . 40,456 67,956 30,395 54,501
Trustee's fees (Note 2). . . . . . . . . . . 5,284 5,284 5,284 5,284
Legal fees . . . . . . . . . . . . . . . . . 1,625 1,625 1,625 1,625
Transfer agent fees. . . . . . . . . . . . . 4,480 4,667 4,945 4,955
Insurance expense. . . . . . . . . . . . . . 5,322 5,317 5,318 5,321
Registration and filing fees . . . . . . . . 429 429 429 429
Miscellaneous expenses . . . . . . . . . . . 72 54 59 119
---------- --------------- ------------ -----------
Total operating expenses before
waivers and reimbursements . . . . . . . . 160,102 184,286 151,853 171,416
Fees waived and expenses reimbursed (Note 2) (129,675) (156,326) (123,292) (146,398)
---------- --------------- ------------ -----------
NET EXPENSES . . . . . . . . . . . . . . . 30,427 27,960 28,561 25,018
---------- --------------- ------------ -----------
NET INVESTMENT INCOME. . . . . . . . . . . 140,680 25,979 86,775 69,786
---------- --------------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments and futures contracts. . . . . 295,529 258,493 201,702 622,295
Foreign currency transactions. . . . . . . - (7,339) - -
Net change in unrealized
appreciation (depreciation) of:
Investments. . . . . . . . . . . . . . . . 522,340 (239,805) 621,441 676,633
Foreign currency . . . . . . . . . . . . . - (11,172) - -
---------- --------------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS). . . . . . . . . . . . . . . . 817,869 177 823,143 1,298,928
---------- --------------- ------------ -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. . . . . . . . . . . $ 958,549 $ 26,156 $ 909,918 $1,368,714
========== =============== ============ ===========
** Net of foreign withholding taxes of . . . $ 136 $ 6,205 $ - $ -
========== =============== ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
SALOMON VAN KAMPEN
GLOBAL BROTHERS AMERICAN
ADVISORS U.S. CAPITAL
MONEY GOVERNMENT EMERGING
MARKET SECURITIES GROWTH
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . . $ 169,243 $ 168,683 $ 22,447
Dividend income. . . . . . . . . . . . . . . - - 7,911
---------- ------------ ----------
TOTAL INVESTMENT INCOME. . . . . . . . . . 169,243 168,683 30,358
EXPENSES
Investment Advisory fees (Note 2). . . . . . 13,296 12,151 26,829
Sub-administration fees. . . . . . . . . . . 53,436 53,880 53,722
Audit fees . . . . . . . . . . . . . . . . . 10,750 10,750 12,025
Custodian fees and expenses. . . . . . . . . 27,862 30,374 91,700
Trustee's fees (Note 2). . . . . . . . . . . 5,284 5,284 5,284
Legal fees . . . . . . . . . . . . . . . . . 1,625 1,625 1,625
Transfer agent fees. . . . . . . . . . . . . 5,137 3,887 5,022
Insurance expense. . . . . . . . . . . . . . 5,318 5,317 5,321
Registration and filing fee. . . . . . . . . 429 429 429
Miscellaneous expenses . . . . . . . . . . . 59 7 60
---------- ------------ ----------
Total operating expenses before
waivers and reimbursements . . . . . . . 123,196 123,704 202,017
Fees waived and expenses reimbursed (Note 2) (113,742) (114,878) (179,839)
---------- ------------ ----------
NET EXPENSES . . . . . . . . . . . . . . 9,454 8,826 22,178
---------- ------------ ----------
NET INVESTMENT INCOME. . . . . . . . . . 159,789 159,857 8,180
---------- ------------ ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . - 23,149 (102,237)
Net change in unrealized
appreciation (depreciation) of:
Investments. . . . . . . . . . . . . . . . - 38,894 704,593
---------- ------------ ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS). . . . . . . . . . . . . . . . - 62,043 602,356
---------- ------------ ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. . . . . . . . . . . $ 159,789 $ 221,900 $ 610,536
========== ============ ==========
** Net of foreign withholding taxes of . . . . $ - $ - $ 20
========== ============ ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
BEA CREDIT SUISSE
GROWTH AND INCOME INTERNATIONAL EQUITY
------------------ --------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income . . . . . . . . . . . $ 140,680 $ 121,254 $ 25,979 $ 26,519
Net realized gain (loss) on:
Investments and futures . . . . . . . . . 295,529 110,399 258,493 259,448
Foreign currency transactions . . . . . . - - (7,339) 24,110
Net change in unrealized appreciation
(depreciation) of:
Investments and futures . . . . . . . . . 522,340 110,048 (239,805) 30,380
Foreign currency. . . . . . . . . . . . . - - (11,172) 22,709
-------------- -------------- -------------- --------------
Net increase in net assets resulting
from operations . . . . . . . . . . . . 958,549 341,701 26,156 363,166
Distributions to shareholders (Note 1):
From net investment income. . . . . . . . . (139,024) (120,147) (44,337) (26,519)
In excess of net investment income. . . . . - - (81,524) (61,401)
From net realized gains . . . . . . . . . . (237,747) (102,804) (174,639) (223,676)
Fund share transactions (Note 4). . . . . . . 3,661,091 890,030 1,857,579 592,388
-------------- -------------- -------------- --------------
Total increase in net assets. . . . . . . . . 4,242,869 1,008,780 1,583,235 643,958
NET ASSETS:
Beginning of period . . . . . . . . . . . . . 3,145,099 2,136,319 2,726,982 2,083,024
-------------- -------------- -------------- --------------
End of period (a) . . . . . . . . . . . . . . $ 7,387,968 $ 3,145,099 $ 4,310,217 $ 2,726,982
============== ============== ============== ==============
(a) Including undistributed (overdistributed)
net investment income . . . . . . . . . . . . $ 2,697 $ 1,107 $ (11,838) $ (2,632)
============== ============== ============== ==============
ELITEVALUE
ASSET ALLOCATION
----------------------------
YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996*
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income . . . . . . . . . . . $ 86,775 $ 26,047
Net realized gain (loss) on:
Investments and futures . . . . . . . . . 201,702 28,614
Foreign currency transactions . . . . . . - -
Net change in unrealized appreciation
(depreciation) of:
Investments and futures . . . . . . . . . 621,441 309,384
Foreign currency. . . . . . . . . . . . - . -
-------------- --------------
Net increase in net assets resulting
from operations . . . . . . . . . . . . 909,918 364,045
Distributions to shareholders (Note 1):
From net investment income. . . . . . . . (86,761) (26,047)
In excess of net investment income. . . . - -
From net realized gains . . . . . . . . . (213,790) (28,614)
Fund share transactions (Note 4). . . . . . 6,554,216 1,997,654
-------------- --------------
Total increase in net assets. . . . . . . . 7,163,583 2,307,038
NET ASSETS:
Beginning of period . . . . . . . . . . . . . 2,307,038 -
-------------- --------------
End of period (a) . . . . . . . . . . . . . . $ 9,470,621 $ 2,307,038
============== ==============
(a) Including undistributed (overdistributed)
net investment income . . . . . . . . . . . . $ 14 $ -
============== ==============
<FN>
*-The Asset Allocation Portfolio commenced investment operation on January 2, 1996.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL ADVISORS GLOBAL ADVISORS
GROWTH EQUITY MONEY MARKET
------------- ------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income . . . . . . . . . . . $ 69,786 $ 47,555 $ 159,789 $ 37,566
Net realized gain (loss) on:
Investments . . . . . . . . . . . . . . . 622,295 131,244 - -
Net change in unrealized appreciation
(depreciation) of investments . . . . . . . 676,633 340,351 - -
-------------- -------------- -------------- --------------
Net increase in net assets resulting
from operations . . . . . . . . . . . . . 1,368,714 519,150 159,789 37,566
Distributions to shareholders (Note 1):
From net investment income. . . . . . . . . (69,791) (47,555) (159,789) (37,566)
From net realized gains . . . . . . . . . . (636,692) (123,806) - -
Fund share transactions (Note 4). . . . . . . 3,244,409 1,000,038 3,809,240 1,164,745
-------------- -------------- -------------- --------------
Total increase in net assets. . . . . . . . . 3,906,640 1,347,827 3,809,240 1,164,745
NET ASSETS:
Beginning of period . . . . . . . . . . . . . 3,420,466 2,072,639 1,291,024 126,279
-------------- -------------- -------------- --------------
End of period (a) . . . . . . . . . . . . . . $ 7,327,106 $ 3,420,466 $ 5,100,264 $ 1,291,024
============== ============== ============== ==============
(a) Including undistributed (overdistributed)
net investment income . . . . . . . . . . . . $ - $ - $ - $ -
============== ============== ============== ==============
SALOMON BROTHERS U.S.
GOVERNMENT SECURITIES
---------------------
YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996*
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income . . . . . . . . . . . $ 159,857 $ 121,541
Net realized gain (loss) on:
Investments . . . . . . . . . . . . . . . 23,149 (39,476)
Net change in unrealized appreciation
(depreciation) of investments . . . . . . . 38,894 (1,770)
-------------- --------------
Net increase in net assets resulting
from operations . . . . . . . . . . . . . 221,900 80,295
Distributions to shareholders (Note 1):
From net investment income. . . . . . . . . (160,062) (121,541)
From net realized gains . . . . . . . . . . - -
Fund share transactions (Note 4). . . . . . . 1,577,343 2,387,963
-------------- --------------
Total increase in net assets. . . . . . . . . 1,639,181 2,346,717
NET ASSETS:
Beginning of period . . . . . . . . . . . . . 2,346,717 -
-------------- --------------
End of period (a) . . . . . . . . . . . . . . $ 3,985,898 $ 2,346,717
============== ==============
(a) Including undistributed (overdistributed)
net investment income . . . . . . . . . . . . $ 139 $ -
============== ==============
<FN>
*-The U.S. Government Securities Portfolio commenced investment operation on February 6, 1996.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
VAN KAMPEN AMERICAN
CAPITAL EMERGING GROWTH
-----------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996*
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income . . . . . . . . . . . . $ 8,180 $ 5,070
Net realized gain (loss) on:
Investments and futures . . . . . . . . . . . (102,237) (10,938)
Net change in unrealized appreciation
(depreciation) of:
Investments and futures . . . . . . . . . . . 704,593 144,523
-------------- --------------
Net increase in net assets resulting
from operations . . . . . . . . . . . . . . . 610,536 138,655
Distributions to shareholders (Note 1):
From net investment income. . . . . . . . . . (7,882) (5,070)
From net realized gains . . . . . . . . . . . - (49,696)
Fund share transactions (Note 4). . . . . . 3,014,043 1,797,948
-------------- --------------
Total increase in net assets. . . . . . . . . 3,616,697 1,881,837
NET ASSETS:
Beginning of period . . . . . . . . . . . . . 1,881,837 -
-------------- --------------
End of period (a) . . . . . . . . . . . . . $ 5,498,534 $ 1,881,837
============== ==============
(a) Including undistributed (overdistributed)
net investment income . . . . . . . . . . . . $ 298 $ -
============== ==============
<FN>
*-The Emerging Growth Portfolio commenced investment operation on January 2,
1996.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
BEA GROWTH AND INCOME
------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995*
-------------- -------------- --------------
<S> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period. $ 11.04 $ 10.46 $ 10.00
-------------- -------------- --------------
INVESTMENT OPERATIONS
Net investment income (1) . . . . . . 0.33 0.47 0.14
Net realized and
unrealized gain (loss). . . . . . . 2.11 0.96 0.51
-------------- -------------- --------------
Total from investment operations. . . 2.44 1.43 0.65
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income . . . . . . . . (0.33) (0.47) (0.14)
In excess of net investment income. . - - -
Net realized gains. . . . . . . . . . (0.43) (0.38) -
In excess of net realized gains . . . - - (0.05)
-------------- -------------- --------------
Total distributions
to shareholders . . . . . . . . . . (0.76) (0.85) (0.19)
-------------- -------------- --------------
Net asset value, end of period. . . . $ 12.72 $ 11.04 $ 10.46
============== ============== ==============
TOTAL RETURN. . . . . . . . . . . . . 22.33% 13.82% 6.57% (2)
RATIOS AND SUPPLEMENTAL
DATA
Expenses to average
net assets (3). . . . . . . . . . . 0.62% 0.49% 0.12% (4)
Net investment income to
average net assets. . . . . . . . . 2.87% 4.65% 6.99%
Portfolio turnover rate . . . . . . . 191% 217% 75%
Average commission rate (5) . . . . . $ 0.0421 $ 0.0600 $ 0.0623
Net assets, end of period (000's) . . $ 7,388 $ 3,145 $ 2,136
CREDIT SUISSE INTERNATIONAL EQUITY
-------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31 DECEMBER 31,
1997 1996 1995*
-------------- -------------- --------------
<S> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period. $ 10.67 $ 10.33 $ 10.00
-------------- -------------- --------------
INVESTMENT OPERATIONS
Net investment income (1) . . . . . . 0.08 0.15 0.06
Net realized and
unrealized gain (loss). . . . . . . 0.37 1.56 0.33
-------------- -------------- --------------
Total from investment operations. . . 0.45 1.71 0.39
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income . . . . . . . . (0.12) (0.15) (0.06)
In excess of net investment income. . (0.20) - -
Net realized gains. . . . . . . . . . (0.45) (0.24) -
In excess of net realized gains . . . - (0.98) -
-------------- -------------- --------------
Total distributions
to shareholders . . . . . . . . . . (0.77) (1.37) (0.06)
-------------- -------------- --------------
Net asset value, end of period. . . . $ 10.35 $ 10.67 $ 10.33
============== ============== ==============
TOTAL RETURN. . . . . . . . . . . . . 4.30% 16.50% 3.93% (2)
RATIOS AND SUPPLEMENTAL
DATA
Expenses to average
net assets (3). . . . . . . . . . . 0.77% 0.60% 0.12% (4)
Net investment income to
average net assets. . . . . . . . . 0.71% 1.09% 2.89%
Portfolio turnover rate . . . . . . . 6% 79% 2%
Average commission rate (5) . . . . . $ 0.0135 $ 0.0134 $ 0.0371
Net assets, end of period (000's) . . $ 4,310 $ 2,727 $ 2,083
<FN>
*-The Growth and Income Portfolio and International Equity Portfolio commenced operations on October 20, 1995.
(1) Net investment income is after waiver of fees and reimbursement of certain expenses by the Investment
Adviser, the Sub-administrator and Western National Life Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the Sub-administrator had not waived fees and Western
National Life Insurance Company had not reimbursed expenses for the periods ended December 31, 1997, December 31,
1996, and December 31, 1995, net investment income (loss) per share would have been $0.10, $0.00 and $(0.06) for the
Growth and Income Portfolio, respectively and $(0.29), $(1.25) and $(0.18) for the International Equity Portfolio,
respectively.
(2) Total return represents aggregate total return for the period indicated and is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and Western National Life Insurance
Company had not reimbursed expenses for the periods ended December 31, 1997, December 31, 1996, and December 31,
1995, the ratio of operating expenses to average net assets would have been 3.26%, 5.15% and 9.95% for the Growth and
Income Portfolio, respectively and 5.06%, 6.41% and 11.83% for the International Equity Portfolio, respectively.
(4) Annualized.
(5) Represents the average commission rate paid on equity security transactions on which commissions are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ELITEVALUE ASSET ALLOCATION GLOBAL ADVISORS GROWTH EQUITY
----------------------------- --------------------------------
YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996* 1997 1996 1995*
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period. $ 12.32 $ 10.00 $ 11.85 $ 10.31 $ 10.00
-------------- -------------- -------------- -------------- --------------
INVESTMENT OPERATIONS
Net investment income (1) . . . . . . 0.19 0.18 0.17 0.20 0.05
Net realized and
unrealized gain (loss). . . . . . . 2.39 2.48 3.56 1.99 0.31
-------------- -------------- -------------- -------------- --------------
Total from investment operations. . . 2.58 2.66 3.73 2.19 0.36
-------------- -------------- -------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income . . . . . . . . (0.19) (0.18) (0.17) (0.20) (0.05)
Net realized gains. . . . . . . . . . (0.33) (0.16) (1.34) (0.45) -
-------------- -------------- -------------- -------------- --------------
Total distributions
to shareholders . . . . . . . . . . (0.52) (0.34) (1.51) (0.65) (0.05)
-------------- -------------- -------------- -------------- --------------
Net asset value, end of period. . . . $ 14.38 $ 12.32 $ 14.07 $ 11.85 $ 10.31
============== ============== ============== ============== ==============
TOTAL RETURN. . . . . . . . . . . . . 21.08% 26.70% (2) 31.67% 21.36% 3.57% (2)
RATIOS AND SUPPLEMENTAL
DATA
Expenses to average
net assets (3). . . . . . . . . . . 0.52% 0.36% (4) 0.48% 0.39% 0.12% (4)
Net investment income to
average net assets. . . . . . . . . 1.58% 1.74% 1.34% 1.80% 2.46%
Portfolio turnover rate . . . . . . . 29% 21% 111% 89% 9%
Average commission rate (5) . . . . . $ 0.0572 $ 0.0545 $ 0.0377 $ 0.0326 $ 0.0226
Net assets, end of period (000's) . . $ 9,471 $ 2,307 $ 7,327 $ 3,420 $ 2,073
<FN>
*-The Asset Allocation Portfolio and Growth Equity Portfolio commenced operations on January 2, 1996 and October 20,
1995, respectively.
(1) Net investment income is after waiver of fees and reimbursement of certain expenses by the Investment Adviser,
the Sub-administrator and Western National Life Insurance Company, an affiliate of the Adviser (see Note 2 to the
financial statements). If the Investment Adviser and the Sub-administrator had not waived fees and Western National
Life Insurance Company had not reimbursed expenses for the periods ended December 31, 1997 and December 31, 1996, net
investment income (loss) per share would have been $0.00 and $(0.54) for the Asset Allocation Portfolio,
respectively. For the periods ended December 31, 1997, December 31,1996 and December 31, 1995, the net investment
income (loss) per share would have been $(0.11), $(0.29) and $(0.15) for the Growth Equity Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and Western National Life Insurance
Company had not reimbursed expenses for the periods ended December 31, 1997 and December 31, 1996, the ratio of
operating expenses to average net assets would have been 2.76% and 7.45% for the Asset Allocation Portfolio,
respectively. For the periods ended December 31, 1997, December 31, 1996 and December 31, 1995, the ratio of
operating expenses to average net assets would have been 3.29%, 4.83% and 9.94% for the Growth Equity Portfolio,
respectively.
(4) Annualized.
(5) Represents the average commission rate paid on equity security transactions on which commissions are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SALOMON BROTHERS
GLOBAL ADVISORS MONEY MARKET U.S. GOVERNMENT SECURITIES
------------------------------- ----------------------------
YEAR YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995* 1997 1996*
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period. $ 1.00 $ 1.00 $ 1.00 $ 9.79 $ 10.00
-------------- -------------- -------------- -------------- --------------
INVESTMENT OPERATIONS
Net investment income (1) . . . . . . 0.05 0.05 0.01 0.57 0.53
Net realized and
unrealized gain (loss) . . . . . . - - - 0.28 (0.21)
-------------- -------------- -------------- -------------- --------------
Total from investment operations. . . 0.05 0.05 0.01 0.85 0.32
-------------- -------------- -------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income . . . . . . . . (0.05) (0.05) (0.01) (0.57) (0.53)
-------------- --------------
Total distributions
to shareholders . . . . . . . . . . (0.05) (0.05) (0.01) (0.57) (0.53)
-------------- -------------- -------------- -------------- --------------
Net asset value, end of period. . . . $ 1.00 $ 1.00 $ 1.00 $ 10.07 $ 9.79
============== ============== ============== ============== ==============
TOTAL RETURN. . . . . . . . . . . . . 5.50% 5.19% 1.17% (2) 8.89% 3.40% (2)
RATIOS AND SUPPLEMENTAL
DATA
Expenses to average
net assets (3). . . . . . . . . . . 0.32% 0.29% 0.12% (4) 0.35% 0.22% (4)
Net investment income to
average net assets. . . . . . . . . 5.41% 5.23% 5.25% 6.25% 5.91%
Portfolio turnover rate . . . . . . . N/A N/A N/A 615% 297%
Average commission rate (5) . . . . . - - - - -
Net assets, end of period (000's) . . $ 5,100 $ 1,291 $ 126 $ 3,986 $ 2,347
<FN>
*-The Money Market Portfolio and U.S. Government Securities Portfolio commenced operations on October 10, 1995 and
February 6, 1996, respectively.
(1) Net investment income is after waiver of fees and reimbursement of certain expenses by the Investment Adviser,
the Sub-administrator and Western National Life Insurance Company, an affiliate of the Adviser (see Note 2 to the
financial statements). If the Investment Adviser and the Sub-administrator had not waived fees and Western National
Life Insurance Company had not reimbursed expenses for the periods ended December 31, 1997, December 31, 1996, and
December 31, 1995, net investment income (loss) per share would have been $0.03, $(0.08) and $(0.35) for the Money
Market Portfolio, respectively. For the periods ended December 31, 1997 and December 31, 1996, the net investment
income (loss) per share would have been $0.28 and $0.10 for the U.S. Government Securities Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and Western National Life Insurance
Company had not reimbursed expenses for the periods ended December 31, 1997, December 31, 1996, and December 31,
1995, the ratio of operating expenses to average net assets would have been 4.17%, 14.15% and 161.83% for the Money
Market Portfolio, respectively. For the periods ended December 31, 1997 and December 31, 1996, the ratio of operating
expenses to average net assets would have been 4.84% and 5.26% for the U.S. Government Securities Portfolio,
respectively.
(4) Annualized.
(5) Represents the average commission rate paid on equity security transactions on which commissions are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
WNL SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
VAN KAMPEN AMERICAN
CAPITAL EMERGING GROWTH
-------------------------
YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996*
-------------- --------------
<S> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period. $ 11.54 $ 10.00
-------------- --------------
INVESTMENT OPERATIONS
Net investment income (1) . . . . . . 0.03 0.05
Net realized and
unrealized gain (loss) . . . . . . 2.33 1.86
-------------- --------------
Total from investment operations. . . 2.36 1.91
-------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income . . . . . . . . (0.03) (0.05)
Net realized gains. . . . . . . . . . - (0.32)
-------------- --------------
Total distributions
to shareholders . . . . . . . . . . (0.03) (0.37)
-------------- --------------
Net asset value, end of period. . . . $ 13.87 $ 11.54
============== ==============
TOTAL RETURN. . . . . . . . . . . . . 20.45% 19.06% (2)
RATIOS AND SUPPLEMENTAL
DATA
Expenses to average
net assets (3). . . . . . . . . . . 0.62% 0.46% (4)
Net investment income to
average net assets. . . . . . . . . 0.23% 0.40%
Portfolio turnover rate . . . . . . . 107% 154%
Average commission rate (5) . . . . . $ 0.0419 $ 0.0419
Net assets, end of period (000's) . . $ 5,499 $ 1,882
<FN>
*-The Emerging Growth Portfolio commenced operations on January 2, 1996.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and Western National
Life Insurance Company, an affiliate of the Adviser (see Note 2 to the financial
statements). If the Investment Adviser and the Sub-administrator had not waived
fees and Western National Life Insurance Company had not reimbursed expenses for
the periods ended December 31, 1997 and December 31, 1996, net investment income
(loss) per share would have been $(0.42) and $(1.29) for the Emerging Growth
Portfolio.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
Western National Life Insurance Company had not reimbursed expenses for the
periods ended December 31, 1997 and December 31, 1996, the ratio of operating
expenses to average net assets would have been 5.65% and 11.22% for the Emerging
Growth Portfolio.
(4) Annualized.
(5) Represents the average commission rate paid on equity security transactions
on which commissions are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
WNL Series Trust (the "Trust") is an open-end, diversified series management
investment company established as a Massachusetts business trust under a
Declaration of Trust dated December 12, 1994, as amended April 19, 1995. The
Trust currently offers shares of beneficial interest in seven series (the
"Portfolios"), each of which has a different investment objective and represents
the entire interest in a separate portfolio of investments. The Portfolios are:
BEA Growth and Income Portfolio (the "Growth and Income Portfolio"), Credit
Suisse International Equity Portfolio (the "International Equity Portfolio"),
EliteValue Asset Allocation Portfolio (the "Asset Allocation Portfolio"), Global
Advisors Growth Equity Portfolio (the "Growth Equity Portfolio"), Global
Advisors Money Market Portfolio (the "Money Market Portfolio"), Salomon Brothers
U.S. Government Securities Portfolio (the "U.S. Government Securities
Portfolio"), and Van Kampen American Capital Emerging Growth Portfolio (the
"Emerging Growth Portfolio"). The Portfolios are currently available to the
public only through variable annuity contracts ("VA Contracts") issued by
Western National Life Insurance Company (the "Life Company"), a wholly-owned
subsidiary of Western National Corporation.
1. SIGNIFICANT ACCOUNTING POLICIES
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 these estimates. The following is a summary of
significant accounting policies followed by the Trust in the preparation of its
financial statements in accordance with generally accepted accounting
principles.
(A) VALUATION OF SECURITIES - All securities are valued as of the close of
regular trading on the New York Stock Exchange (normally 4:00 p.m. New York
time). Securities traded on a national securities exchange or quoted on the
NASDAQ National Market System are valued at their last-reported sale price on
the principal exchange or reported by NASDAQ or, if there is no reported sale,
and in the case of over-the-counter securities not included in the NASDAQ
National Market System, at a bid price estimated by a broker or dealer. Debt
securities, including zero-coupon securities, and certain foreign securities
will be valued by a pricing service approved by the Trustees. Other foreign
securities will be valued by the Trust's custodian. The value of a foreign
security is determined in its national currency as of the close of trading on
the foreign exchange on which it is traded or as of 4:00 p.m. New York time, if
that is earlier, and that value is then converted into its U.S. dollar
equivalent at the foreign exchange rate in effect at noon, New York time, on the
day the value of the foreign security is determined. Securities for which
current market quotations are not readily available and all other assets are
valued at fair value as determined in good faith by the Trustees.
The Money Market Portfolio values all securities using the amortized cost method
which approximates market value. Under this method, which does not take into
account unrealized securities gains or losses, an instrument is initially valued
at its cost and thereafter assumes a constant amortization or accretion to
maturity of any discount or premium.
(B) REPURCHASE AGREEMENTS - A repurchase agreement is a contract under which
the Portfolio acquires a security for a relatively short period (usually not
more than a week) subject to the obligation of the seller to repurchase and the
Portfolio to resell such security at a fixed time and price. The collateral for
such agreements will be held by the Portfolio's custodian. The Portfolio will
enter into repurchase agreements only with banks and broker-dealers that have
been determined to be creditworthy by the Trust's Board of Trustees. The seller
under a repurchase agreement would be required to maintain the value of the
collateral subject to the repurchase agreement at not less than the repurchase
price. Default by the seller would expose the Portfolio to possible loss
because of adverse market action or delay in connection with the disposition of
the underlying collateral. In addition, if bankruptcy proceedings are commenced
with respect to the seller of the obligations, the Portfolio may be delayed or
limited in its ability to sell the collateral.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
(C) WHEN ISSUED TRANSACTIONS- The Portfolios may enter into a when-issued
transaction for the purpose of acquiring portfolio securities and not for the
purpose of leverage, although a Portfolio may dispose of a when-issued security
or forward commitment prior to settlement if it is deemed appropriate to do so.
In such transactions, delivery of the securities occurs beyond the normal
settlement periods, but no payment or delivery is made by, and no interest
accrues to, the Portfolios prior to the actual delivery or payment by the other
party to the transaction. Due to fluctuations in the value of securities
purchased on a when-issued or a delayed-delivery basis, the yields obtained on
such securities may be higher or lower than the yields available in the market
on the dates when the investments are actually delivered to the buyers.
(D) DOLLAR ROLL TRANSACTIONS- Certain Portfolios seeking a high level of
current income may enter into dollar rolls in which the Portfolio sells
securities (usually Mortgage-Backed Securities) and simultaneously to purchase
contracts, typically in 30 to 60 days, substantially similar but not identical,
securities on a specified future date through a TBA purchase commitment. The
proceeds of the initial sale of securities in such transaction may be used to
purchase long-term securities which will be held during the dollar roll period.
During the roll period the Portfolio foregoes principal and interest paid on the
security sold at the beginning of the roll period. The Portfolio may be
compensated by either, the difference between the current sale price and the
forward price for the future purchase as well as by the interest earned on the
cash proceeds of the initial sale or a set fee determined at the time the
transaction is entered into or a combination of these two methods. Dollar rolls
involve the risk that the market value of the securities the Portfolio is
obligated to repurchase under the agreement may decline below the repurchase
price.
(E) TBA PURCHASE COMMITMENTS- Certain Portfolios may enter into "TBA" (to be
announced) purchase commitments to purchase securities for a fixed unit price at
a future date beyond customary settlement time. Although the unit price has
been established, the principal value has not been finalized. The Portfolio
holds, and maintains until settlement date, cash or high-grade debt obligations
in an amount sufficient to meet the purchase price, or the portfolio may enter
into offsetting contracts for the forward sale of other securities it owns.
Income on the securities will not be earned until settlement date. TBA purchase
commitments may be considered securities in themselves, and involve a risk of
loss if the value of the security to be purchased declines prior to the
settlement date, which risk is in addition to the risk of decline in the value
of the Portfolio's other assets. Unsettled TBA purchase commitments are valued
at the current market value of the underlying securities, according to the
procedures decribed under "Valuation of Securities" above. The portfolio may
dispose of the commitment prior to settlement if the Advisor deems it
appropriate to do so.
(F) FOREIGN INVESTMENTS - Certain Portfolios may invest in securities of
foreign issuers. There are certain risks involved in investing in foreign
securities, including those resulting from fluctuations in currency exchange
rates, devaluation of currencies, future political or economic developments and
the possible imposition of currency exchange blockages or other foreign
governmental laws or restrictions, reduced availability of public information
concerning issuers, and the fact that foreign companies are not generally
subject to uniform accounting, auditing and financial reporting standards or to
other regulatory practices and requirements comparable to those applicable to
domestic companies. The Portfolios' foreign investments may be less liquid and
their prices may be more volatile than comparable investments in securities of
U.S. companies.
(G) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Certain Portfolios may engage
in forward foreign currency exchange contracts ("forward contracts").
Portfolios may enter into forward contracts to convert U.S Dollars to and from
different foreign currencies. A Portfolio can either enter into these
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market, or use forward contracts to purchase or sell
foreign currencies. Forward foreign currency contracts are valued at the
exchange rate and are marked-to-market daily. The change in the market value is
recorded by the Portfolio as an unrealized gain or loss. When the contract is
closed, the Portfolio records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
A forward contract is an obligation by a Portfolio to purchase or sell a
specific currency at a future date. The Portfolio maintains with its custodian,
in a segregated account, high-grade liquid assets in an amount at least equal to
its obligations under each contract. Neither spot transactions nor forward
contracts eliminate fluctuations in the prices of the Portfolio's securities or
in foreign exchange rates, or prevent loss if the prices of these securities
should decline.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
A Portfolio may enter into forward contracts for hedging purposes as well as for
non-hedging purposes. Transactions are entered into for hedging purposes in an
attempt to protect against changes in foreign currency exchange rates that would
adversely affect a portfolio position or an anticipated portfolio position.
Although these transactions tend to minimize the risk of loss due to a decline
in the value of the hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of the hedged currency
increase.
A Portfolio may enter into forward contracts for other than hedging purposes
which present greater profit potential but also involves increased risk.
(H) FOREIGN CURRENCY TRANSLATIONS- The books and records of the Portfolios are
maintained in U.S. dollars. Foreign currencies, investments and other assets
and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated on the respective dates of such
transactions. The eligible Portfolios do not isolate that portion of the
results of operations from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities held. Such
changes and fluctuations are included with net realized and unrealized gain or
loss from investments. Foreign exchange gain (loss) is treated as ordinary
income for federal income tax purposes to the extent constituting "Section 988
Transactions" pursuant to the Internal Revenue Code, including currency gains
(losses) related to the sale of debt securities, forward foreign currency
exchange contracts, payments of liabilities, and collections of receivables.
(I) FUTURES CONTRACTS - Certain Portfolios may enter into futures contracts.
Upon entering into a futures contract, the Portfolio is required to deposit with
the broker an amount of cash or cash equivalents equal to a certain percentage
of the contract amount. This is known as the initial margin. Subsequent
payments ("variation margin") are made or received by the Portfolio each day,
depending on the daily fluctuation of the value of the contract. The daily
changes in the contract are recorded as unrealized gains or losses. The
Portfolio recognizes a realized gain or loss when the contract is closed.
The use of futures contracts as a hedging device involves several risks. The
change in value of futures contracts primarily corresponds with the value of
their underlying instruments, which may not correlate with the change in value
of the hedged investments. In addition, the Portfolio may not be able to enter
into a closing transaction because of an illiquid secondary market.
(J) SECURITIES TRANSACTIONS AND INVESTMENT INCOME - Securities transactions are
recorded as of the trade date. Realized gains and losses on sales of
investments are recorded on the identified cost basis. Interest income is
recorded daily on the accrual basis. Dividend income is recorded on the
ex-date.
(K) EXPENSE ALLOCATION - Expenses with respect to any two or more Portfolios
may be allocated in proportion to the net assets of the respective Portfolios
except where allocations of direct expenses can otherwise be fairly made.
(L) DIVIDENDS AND DISTRIBUTIONS - The Money Market Portfolio will declare a
dividend of its net ordinary income daily and distribute such dividends monthly.
Each of the other Portfolios will declare and distribute dividends from net
ordinary income quarterly and will distribute its net realized capital gains, if
any, at least annually.
Income dividends and capital gain distributions are determined in accordance
with Federal 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 the
Portfolios. As a result, net investment income (loss) and net realized gain
(loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. Accordingly, each
Portfolio may periodically make reclassifications among certain of its capital
accounts without impacting the net asset value of the Portfolio.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
(M) FEDERAL INCOME TAXES - Each Portfolio of the Trust intends to qualify and
elects to be treated as a regulated investment company that is taxed under the
rules of Subchapter M of the Internal Revenue Code. As an electing regulated
investment company, a Portfolio will not be subject to federal income tax on its
net ordinary income and net realized capital gains to the extent such income and
gains are distributed to the separate account of the Life Company which holds
its shares.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under an Investment Advisory Agreement (the "Agreement"), WNL Investment
Advisory Services, Inc. (the "Adviser"), a wholly-owned subsidiary of Western
National Corporation, manages the business and affairs of the Portfolios and the
Trust, subject to the control of the Trustees. Under the Agreement, the Adviser
is obligated to formulate a continuing program for the investment of the assets
of each Portfolio of the Trust in a manner consistent with each Portfolio's
investment objectives, policies and restrictions and to determine from time to
time securities to be purchased, sold, retained or lent by the Trust and to
implement those decisions. The Agreement also provides that the Adviser shall
provide such services required for effective administration of the Trust.
As full compensation for its services under the Agreement, the Trust will pay
the Adviser a monthly fee at the following rates based on the average daily net
assets of each Portfolio:
<TABLE>
<CAPTION>
<S> <C>
BEA Growth and Income . . . . . . . . . . . 0.75%
Credit Suisse International Equity. . . . . 0.90%
EliteValue Asset Allocation . . . . . . . . 0.65%
Global Advisors Growth Equity . . . . . . . 0.61%
Global Advisors Money Market. . . . . . . . 0.45%
Salomon Brothers U.S. Government Securities 0.475%
Van Kampen American Capital Emerging Growth 0.75%
</TABLE>
The Adviser has agreed to waive its advisory fee for each of the Portfolios for
the initial six months of each Portfolio's investment operations. Additionally,
the Adviser has agreed to waive that portion of its advisory fee which is in
excess of the amount payable by the Adviser to each Sub-adviser pursuant to the
respective sub-advisory agreements for each Portfolio until May 1, 1998. The
Adviser pays each Sub-adviser the following fees:
<TABLE>
<CAPTION>
<S> <C>
BEA Growth and Income . . . . . . . . . . . 0.50%
Credit Suisse International Equity. . . . . 0.65%
EliteValue Asset Allocation . . . . . . . . 0.40%
Global Advisors Growth Equity . . . . . . . 0.36%
Global Advisors Money Market. . . . . . . . 0.20%
Salomon Brothers U.S. Government Securities 0.225%
Van Kampen American Capital Emerging Growth 0.50%
</TABLE>
In addition, Western National Life Insurance Company, an affiliate of the
Adviser, has undertaken to bear until May 1, 1998 all operating expenses of each
Portfolio, excluding the compensation of the Adviser, that exceed 0.12% of each
Portfolio's average daily net assets.
In accordance with each Portfolio's investment objective and policies and under
the supervision of the Adviser and the Trust's Board of Trustees, each
Portfolio's Sub-adviser is responsible for the day-to-day investment management
of the Portfolio, to make investment decisions for the Portfolio and to place
orders on behalf of the Portfolio to effect the investment decisions made as
provided in separate Sub-advisory Agreements. The Sub-advisers to the
Portfolios are: BEA Associates for the Growth and Income Portfolio; Credit
Suisse Investment Management, Ltd. for the International Equity Portfolio; OpCap
Advisors for the Asset Allocation Portfolio; State Street Global Advisors for
the Growth Equity and Money Market Portfolios; Salomon Brothers Asset Management
Inc. for the U.S. Government Securities Portfolio; and Van Kampen American
Capital Asset Management, Inc. for the Emerging Growth Portfolio. The
Sub-advisers receive their fees directly from the Adviser, and receive no
compensation from the Trust.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
The Trust's Sub-administrator, custodian, transfer and dividend-paying agent is
State Street Bank and Trust Company.
For the year ended December 31, 1997, the Adviser waived advisory fees, the
Sub-administrator waived Sub-administration fees and Western National Life
Insurance Company reimbursed operating expenses as follows:
<TABLE>
<CAPTION>
Advisory Sub-
Fees administration Expenses
Waived Fees Waived Reimbursed Total
--------- --------------- ----------- --------
<S> <C> <C> <C> <C>
BEA Growth and Income. . . . . . . $ 12,263 - $ 117,412 $129,675
Credit Suisse International Equity 9,113 - 147,213 156,326
EliteValue Asset Allocation. . . . 13,732 - 109,560 123,292
Global Advisors Growth Equity. . . 13,030 - 133,368 146,398
Global Advisors Money Market . . . 7,387 - 106,355 113,742
Salomon Brothers U.S. Government
Securities. . . . . . . . . . . 6,395 $ 4,049 104,434 114,878
Van Kampen American Capital
Emerging Growth . . . . . . . . 8,943 - 170,896 179,839
</TABLE>
WNL Brokerage Services, Inc., a subsidiary of Western National Corporation, is
the distributor and underwriter of the VA Contracts.
Each Trustee of the Trust who is not an interested person of the Trust or
Adviser or Sub-adviser receives an annual fee of $7,500 and an additional fee of
$750 for each Trustees' meeting attended. In addition, disinterested Trustees
who are members of any Board committees will receive a separate $750 fee for
attendance at any committee meeting that is held on a day on which no Board
meeting is held.
For the year ended December 31, 1997, Global Advisors Growth Equity Portfolio,
Credit Suisse International Equity Portfolio, Van Kampen American Capital
Emerging Growth Portfolio and EliteValue Asset Allocation Portfolio paid
brokerage commissions of $465, $126, $217 and $186, respectively, to CS First
Boston Corporation and $607, $169, $483 and $186, respectively, to Salomon
Brothers Inc., affiliated brokers, for portfolio transactions executed on behalf
of the Portfolios.
3. SECURITY TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the year ended December 31, 1997 were as follows:
<TABLE>
<CAPTION>
U.S. U.S.
Government Proceeds Government
Purchases Purchases from Sales Sales
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
BEA Growth and Income. . . . . . . $ 4,819,525 $ 6,687,372 $ 2,745,936 $ 5,860,299
Credit Suisse International Equity 3,038,616 - 1,484,698 -
EliteValue Asset Allocation. . . . 5,689,915 140,374 1,280,952 -
Global Advisors Growth Equity. . . 8,073,602 168,392 5,624,888 13,345
Global Advisors Money Market . . . - - - -
Salomon Brothers U.S. Government
Securities. . . . . . . . . . . - 15,651,914 - 14,675,103
Van Kampen American Capital
Emerging Growth . . . . . . . . 6,074,595 7,308 3,414,520 2,649
</TABLE>
4. SHARES OF BENEFICIAL INTEREST
The Trust has an unlimited authorized number of shares of beneficial interest
with a par value of $0.01. The tables below summarize transactions in Trust
shares.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
<TABLE>
<CAPTION>
BEA GROWTH AND INCOME PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 YEAR ENDED DECEMBER 31, 1996
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 364,640 $ 4,535,552 66,163 $728,535
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 30,006 376,771 20,222 222,950
Capital stock redeemed. . . (98,914) (1,251,232) (5,666) (61,455)
- --------------------------- -------- ------------ ------- ---------
Net increase. . . . . . . . 295,732 $ 3,661,091 80,719 $890,030
=========================== ======== ============ ======= =========
</TABLE>
<TABLE>
<CAPTION>
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 YEAR ENDED DECEMBER 31, 1996
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 177,329 $2,089,267 30,199 $338,622
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 28,680 300,498 29,080 311,598
Capital stock redeemed. . . (45,050) (532,186) (5,158) (57,832)
Net increase. . . . . . . . 160,959 $1,857,579 54,121 $592,388
=========================== ======== =========== ======= =========
</TABLE>
<TABLE>
<CAPTION>
ELITEVALUE ASSET ALLOCATION PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 PERIOD ENDED DECEMBER 31, 1996*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 562,538 $ 7,853,515 188,662 $2,008,545
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 21,013 300,551 4,621 54,661
Capital stock redeemed. . . (112,176) (1,599,850) (5,982) (65,552)
Net increase. . . . . . . . 471,375 $ 6,554,216 187,301 $1,997,654
=========================== ========= ============ ======== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 YEAR ENDED DECEMBER 31, 1996
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 239,753 $3,380,388 78,858 $ 894,813
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 50,305 706,482 14,601 171,361
Capital stock redeemed. . . (57,888) (842,461) (5,936) (66,136)
Net increase. . . . . . . . 232,170 $3,244,409 87,523 $1,000,038
=========================== ======== =========== ======= ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ADVISORS MONEY MARKET PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 YEAR ENDED DECEMBER 31, 1996
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 27,649,529 $ 27,649,529 8,792,660 $ 8,792,660
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 159,789 159,789 37,565 37,565
Capital stock redeemed. . . (24,000,078) (24,000,078) (7,665,480) (7,665,480)
Net increase. . . . . . . . 3,809,240 $ 3,809,240 1,164,745 $ 1,164,745
=========================== ============ ============= =========== ============
</TABLE>
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
<TABLE>
<CAPTION>
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 PERIOD ENDED DECEMBER 31, 1996**
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 167,218 $1,688,562 228,423 $2,278,845
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 16,187 160,062 12,524 121,541
Capital stock redeemed. . . (27,188) (271,281) (1,264) (12,423)
Net increase. . . . . . . . 156,217 $1,577,343 239,683 $2,387,963
=========================== ======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
VAN KAMPEN CAPITAL EMERGING GROWTH PORTFOLIO
YEAR ENDED DECEMBER 31, 1997 PERIOD ENDED DECEMBER 31, 1996*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold. . . . . 387,792 $ 4,961,448 316,820 $ 3,633,490
Capital stock issued upon
reinvestment of dividends
and distributions . . . . 617 7,882 4,733 54,766
Capital stock redeemed. . . (154,969) (1,955,287) (158,471) (1,890,308)
Net increase. . . . . . . . 233,440 $ 3,014,043 163,082 $ 1,797,948
=========================== ========= ============ ========= ============
<FN>
* Portfolio commenced operations on January 2, 1996.
** Portfolio commenced operations on February 6, 1996.
</TABLE>
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
At December 31, 1997, the outstanding forward foreign currency exchange
contracts, which contractually obligate the Trust to deliver currencies at a
specified date, were as follows:
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
- ------------------------------------------------
<TABLE>
<CAPTION>
U.S. DOLLAR
COST ON U.S. DOLLAR
CURRENCY SOLD SETTLEMENT ORIGINATION CURRENT UNREALIZED
DATE DATE VALUE APPRECIATION
------------ ------------ -------- -------------
<S> <C> <C> <C> <C>
FRF . . . . . 01/22/1998 $ 129,828 $126,721 $ 3,107
JPY . . . . . 03/09/1998 506,112 502,843 3,269
NLG . . . . . 01/26/1998 119,057 114,097 4,960
$ 754,997 $743,661 $ 11,336
</TABLE>
6. PORTFOLIO CLOSING
On August 21, 1997, the Board of Directors voted to close the BlackRock Managed
Bond Portfolio, all shareholders were given the opportunity to transfer to any
of the other portfolio in the Trust. As of December 30, 1997 all assets were
liquidated and distributed to the remaining shareholders.
<PAGE>
WNL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (CONTINUED)
7. TAX INFORMATION
For Federal income tax purposes capital loss carryforwards (exclusive of certain
capital losses incurred after October 31) of $16,671 and $84,949 are available
to the extent provided by regulations to offset future realized capital gains of
Salomon Brothers U.S. Government Securities Portfolio and the Van Kampen
American Capital Emerging Growth Portfolio, respectively. These losses expire
in 2004 and 2005, respectively.
Additionally, certain capital losses incurred after October 31, within the
taxable year are deemed to arise on the first business day of the Portfolio's
next taxable year. During the year ended December 31, 1997 Credit Suisse
International Equity Portfolio, Global Advisors Growth Equity Portfolio,
EliteValue Asset Allocation Portfolio and Van Kampen American Capital Emerging
Growth Portfolio elected to defer net capital losses of $14,123, $8,777 $9,115
and $69,870, respectively.
8. SUBSEQUENT EVENT
On September 12, 1997, American General Corporation announced its intention to
purchase all of the outstanding common stock of Western National Corporation.
The transaction is subject to approval by Western National Corporation
shareholders at a meeting to be held on February 25, 1998.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
WNL Series Trust:
We have audited the accompanying statements of assets and liabilities of the WNL
Series Trust (the "Trust") consisting of BEA Growth and Income Portfolio, Credit
Suisse International Equity Portfolio, EliteValue Asset Allocation Portfolio,
Global Advisors Growth Equity Portfolio, Global Advisors Money Market Portfolio,
Salomon Brothers U.S. Government Securities Portfolio and Van Kampen American
Capital Emerging Growth Portfolio, including the schedules of investments, as of
December 31, 1997, the related statements of operations for the year then ended,
the statements of changes in net assets, and the financial highlights for each
of the periods indicated herein. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentations. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
WNL Series Trust as of December 31, 1997, the results of its operations for the
year then ended, the changes in its net assets and its financial highlights for
each of the periods indicated herein, in conformity with generally accepted
accounting principles.
/s/ COOPERS & LYBRAND L.L.P.
----------------------------
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 13, 1998
<PAGE>
WNL SERIES TRUST
PROXY VOTING RESULTS (UNAUDITED)
The following proposal which was voted upon at a special meeting of shareholders
on July 17, 1997, with results shown below.
PROPOSAL 1.
To approve a new Sub-Advisory Agreement between OpCap Advisors, WNL Investment
Advisory Services, Inc. and WNL Series Trust.
<TABLE>
<CAPTION>
For Against Abstain
------- ------- -------
<S> <C> <C> <C>
EliteValue Asset Allocation
Portfolio. . . . . . . . 295,946 3,288 37,460
</TABLE>
