-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FR43Ceh7kuoUoJMp2JZ5SRAw3U6rur7JLIe5OlGTv1PU4CD7lGY6VpgnXM1loNIP JuLdCyrH7BqrwOsq1+NYmw== 0000950124-96-003701.txt : 19960928 0000950124-96-003701.hdr.sgml : 19960928 ACCESSION NUMBER: 0000950124-96-003701 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960821 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT CENTRAL INDEX KEY: 0000742277 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03989 FILM NUMBER: 96618512 BUSINESS ADDRESS: STREET 1: 720 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142711444 MAIL ADDRESS: STREET 1: 720 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWESTERN MUTUAL SERIES FUND INC CENTRAL INDEX KEY: 0000742212 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 391603401 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03990 FILM NUMBER: 96618513 BUSINESS ADDRESS: STREET 1: 720 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142711444 MAIL ADDRESS: STREET 1: 720 EAST WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWESTERN MUTUAL VARIABLE LIFE SERIES FUND INC DATE OF NAME CHANGE: 19940830 N-30D 1 N-30D 1 June 30, 1996 SEMI - ANNUAL REPORT Northwestern Mutual Variable Life Account NORTHWESTERN MUTUAL SERIES FUND, INC. Northwestern Mutual Life(R) 720 East Wisconsin Avenue Milwaukee, Wisconsin 53202 2 NORTHWESTERN MUTUAL SERIES FUND, INC. DIRECTORS James D. Ericson . President and Chief Executive Officer, Northwestern Mutual Life, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee Martin F. Stein . . . . . . . . . . . Chairman of the Board, EyeCare One Corporation, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee John K. MacIver . . . . . . . . . Partner, Michael Best & Friedrich Attorneys at Law, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee Stephen N. Graff . . . . . . . . . . . . . . Retired Partner, Arthur Andersen LLP, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee William J. Blake . . . . . . . . . . . . . . Chairman, Blake Financial Corporation, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee OFFICERS James D. Ericson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President Mark G. Doll . . . . . . . . . . . . . . . . . . . . . . Vice President & Treasurer Merrill C. Lundberg . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary Gary E. Long . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Controller
This report is submitted for the general information of owners of Northwestern Mutual Variable Life policies. This report is not authorized for distribution to prospective purchasers of variable life policies unless it is accompanied by an effective prospectus. Northwestern Mutual Variable Life policies are sold through individuals who, in addition to being licensed life insurance agents of Northwestern Mutual Life, are registered representatives of Northwestern Mutual Investment Services, Inc., a wholly-owned subsidiary of Northwestern Mutual Life and a registered broker-dealer under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. 90-1899 (6-96) Northwestern Mutual Life PO Box 3095 Milwaukee WI 53201-3095 Forwarding and Address Correction Requested 3 POLICYOWNER PRIVILEGES FREE TRANSFERS AMONG PORTFOLIOS A limited number of free transfers per year are available with your policy. Same day transfers are permitted among our investment portfolios by FAX 414-299-4268. The appropriate form (form number 18-1425) must be used. A blank form is included at the end of this report. Additional forms are available from your Northwestern Mutual Life Agent. NORTHWESTERN MUTUAL LIFE'S VARIABLE LIFE POLICIES ARE PARTICIPATING* Policies are expected to pay dividends, based on the company's recent mortality and expense experience. SOME OF THE POPULAR ADDITIONAL BENEFITS WHICH MAY BE AVAILABLE TO POLICYOWNERS INCLUDE THE FOLLOWING (SUBJECT TO UNDERWRITING AND PAYMENT OF APPROPRIATE PREMIUM). OPTIONAL WAIVER OF PREMIUM BENEFIT The Waiver of Premium Benefit waives premiums during total disability. Available at ages 0-59. OPTIONAL ACCIDENTAL DEATH BENEFIT The Accidental Death Benefit provides an additional death benefit when death results from accidental bodily injury. Available at ages 0-65. OPTIONAL ADDITIONAL PURCHASE BENEFIT When the Additional Purchase Benefit is purchased, the company agrees to issue additional policies on several specified purchase dates without requiring evidence of insurability. Available at ages 0-38. CONTACT YOUR NORTHWESTERN MUTUAL LIFE AGENT IF YOU WISH TO LEARN MORE ABOUT ANY OF THE POLICYOWNER PRIVILEGES DESCRIBED ABOVE. * Dividends are based on actual experiences and are not guaranteed. 4 TO OUR POLICYOWNERS: Though many forecasters had predicted a recession in the first half of 1996, the economy proved to be much stronger than expected. New jobs were created at a well above average pace, reflecting strength in the manufacturing and service sectors of the economy. Consumers became more confident, which, in turn, led to increased spending on housing, autos, and non-durable goods. Faster economic growth raises the possibility of higher inflation. Up until now, there have been few early signs of rising raw material prices, but there is a noticeable tightening of the labor force. The financial markets reacted quite differently to these economic developments. Bond prices fell, resulting in higher interest rates as investors adjusted to the prospect of faster economic growth. This heightened fears that the Federal Reserve Board would eventually have to tighten monetary policy. The failure by Congress to come to a meaningful resolution on a balanced budget was a further disappointment for the bond market. The stock market, on the other hand, turned in a solid performance during the first six months. Investors chose to overlook rising interest rates and focused instead on the positives of stronger corporate profits and low inflation. Inflows into equity mutual funds reached all-time record highs during this period, and the market became increasingly speculative. Approaching the middle of the year, however, the stock market began to lose momentum when the sustainability of future earnings growth became more questionable. As we approach the second half of the year, the markets seem to be entering a period of greater uncertainty, with broader swings on a day to day basis. In our view, it is not unreasonable to expect a correction at some point. However, the magnitude of such moves will depend on several important factors, including the strength of the economy, the outlook for inflation, and the response from the Federal Reserve Board. Perhaps most important will be the reaction of individual investors, who determine the inflows into the stock market, primarily through mutual funds. It is never easy to consistently predict changes in market direction. The best approach is to stay focused on long-term investment goals, regardless of market fluctuations. IMPORTANT NOTE: The average annual total returns shown with the graphs on the following pages are not an estimate or a guarantee of future performance. These average annual total returns reflect reinvestment of investment income and capital gain distributions, and deduction of investment management fees and fund expenses, but not product charges. See the prospectus for a description of the effect of investment performance on policy benefits. Policy benefits reflect the investment rates of return of the divisions in which the policy is invested, and will vary depending on the insurance and administrative charges, applicable sales charges, and the mortality and expense risk charge associated with the product. These product charges effectively reduce the dollar amount of any net gains and increase the dollar amount of any net losses. The net investment rates of return shown on page 10 reflect the product charges borne by each division of the Variable Life Account, but not the additional charges that are unique to your policy. Your Northwestern Mutual Life agent/registered representative of Northwestern Mutual Investment Service ("NMIS") can provide you with actual rates of return for your variable life insurance policy, showing the effect of all of the applicable charges. 1 5 AGGRESSIVE GROWTH STOCK PORTFOLIO The chart below assumes an initial investment of $10,000 made on 11/30/90 (commencement of the Fund's operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30,1996
One Five Since Year Year Inception * ---- ---- ----------- Aggressive Growth Stock Portfolio 43.17% 22.69% 25.17% Wilshire Small Cap 25.55% 17.00% 20.96% Wilshire Next 1750 25.13% 17.88% 21.77% *November 30, 1990 inception. 11/90 6/91 6/92 6/93 Aggressive Growth Stock Portfolio $10,000 $12,593 $13,994 $17,133 Wilshire Small Cap $10,000 $13,189 $15,522 $19,336 Wilshire Next 1750 $10,000 $13,186 $15,086 $19,108 6/94 6/95 6/96 Aggressive Growth Stock Portfolio $19,354 $24,448 $35,003 Wilshire Small Cap $20,012 $23,034 $28,918 Wilshire Next 1750 $19,670 $23,986 $30,014
2 6 INTERNATIONAL EQUITY STOCK PORTFOLIO The chart below assumes an initial investment of $10,000 made on 4/30/93 (commencement of the Fund's operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Since Year Inception* ------ ---------- International Equity Stock Portfolio 15.44% 15.00% EAFE 13.60% 10.78% *April 30, 1993 inception. 4/93 6/93 6/94 6/95 6/96 International Equity Stock Portfolio $10,000 $10,118 $12,155 $13,487 $15,569 EAFE $10,000 $10,202 $11,936 $12,175 $13,831
3 7 INDEX 500 STOCK PORTFOLIO The chart below assumes an initial investment of $10,000 made on 6/30/86. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the return significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Five Ten Year Years Years ---- ----- ----- Index 500 Stock Portfolio 25.89% 14.55% 11.68% S&P 500 Index 25.90% 15.65% 13.62% 6/86 6/87 6/88 6/89 6/90 Index 500 Stock Portfolio $ 10,000 $ 12,313 $ 11,888 $ 13,021 $ 13,972 S&P 500 Index $ 10,000 $ 12,450 $ 11,566 $ 13,902 $ 16,155 6/91 6/92 6/93 6/94 6/95 6/96 Index 500 Stock Portfolio $ 15,299 $ 16,768 $ 18,850 $ 19,035 $ 23,967 $ 30,172 S&P 500 Index $ 17,334 $ 19,657 $ 22,330 $ 22,620 $ 28,479 $ 35,855
4 8 GROWTH STOCK PORTFOLIO The chart below assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Since Year Inception* ---- ---------- Growth Stock Portfolio 26.39% 19.51% S&P 500 Index 25.90% 22.89% *May 3, 1994 inception. 5/3/94 6/94 6/95 6/96 Growth Stock Portfolio $ 10,000 $ 9,884 $ 11,626 $ 14,694 S&P 500 Index $ 10,000 $ 9,845 $ 12,394 $ 15,604
5 9 GROWTH AND INCOME STOCK PORTFOLIO The chart below assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Since Year Inception* ---- ---------- Growth and Income Stock Portfolio 19.95% 17.25% S&P 500 Index 25.90% 22.89% *May 3, 1994 inception. 5/3/94 6/94 6/95 6/96 Growth and Income Stock Portfolio $ 10,000 $ 9,784 $ 11,754 $ 14,099 S&P 500 Index $ 10,000 $ 9,845 $ 12,394 $ 15,604
6 10 SELECT BOND PORTFOLIO The chart below assumes an initial investment of $10,000 made on 6/30/86. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Five Ten Year Years Years ---- ----- ----- Select Bond Portfolio 5.00% 8.93% 8.49% Merrill Lynch Domestic Master Index 4.96% 8.36% 8.55% 6/86 6/87 6/88 6/89 6/90 Select Bond Portfolio $10,000 $10,398 $11,108 $12,498 $13,296 Merrill Lynch Domestic Master Index $10,000 $10,538 $11,363 $12,776 $13,712 6/91 6/92 6/93 6/94 6/95 6/96 Select Bond Portfolio $14,735 $16,959 $19,127 $19,082 $21,520 $22,596 Merrill Lynch Domestic Master Index $15,204 $17,355 $19,426 $19,224 $21,644 $22,717
11 HIGH YIELD BOND PORTFOLIO The chart below assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Since Year Inception ---- --------- High Yield Bond Portfolio 11.71% 12.26% Salomon Brothers High Yield Market Index 9.59% 11.05% Lehman Brothers High Yield Intermediate Market Index 10.02% 10.75% *May 3, 1994 inception. 5/3/94 6/94 6/95 6/95 High Yield Bond Portfolio $10,000 $10,110 $11,490 $12,836 Salomon Brothers High Yield Market Index $10,000 $10,046 $11,442 $12,539 Lehman Brothers High Yield Intermediate Market Index $10,000 $10,061 $11,330 $12,465
12 BALANCED PORTFOLIO The chart below assumes an initial investment of $10,000 made on 6/30/86. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended June 30, 1996
One Five Ten Year Years Years ---- ----- ----- Balanced Portfolio 15.91% 11.54% 10.15% S&P 500 Index 25.90% 15.65% 13.62% Merrill Lynch Domestic Master Index 4.96% 8.36% 8.55% Merrill Lynch 91-Day Treasury Bill 5.53% 4.59% 5.98% 6/86 6/87 6/88 6/89 6/90 Balanced Portfolio $10,000 $11,619 $11,821 $12,920 $13,825 S&P 500 Index $10,000 $12,450 $11,566 $13,902 $16,155 Merrill Lynch Domestic Master Index $10,000 $10,538 $11,363 $12,776 $13,712 Merrill Lynch 91-Day Treasury Bill $10,000 $10,616 $11,288 $12,244 $13,284 6/91 6/92 6/93 6/94 6/95 6/96 Balanced Portfolio $15,224 $16,946 $19,027 $19,189 $22,675 $26,282 S&P 500 Index $17,334 $19,657 $22,330 $22,620 $28,479 $35,855 Merrill Lynch Domestic Master Index $15,204 $17,355 $19,426 $19,224 $21,644 $22,717 Merrill Lynch 91-Day Treasury Bill $14,288 $15,028 $15,535 $16,059 $16,944 $17,881
13 VARIABLE LIFE ACCOUNT The annual report of Northwestern Mutual Series Fund Inc., is included because all payments to the Variable Life Account are invested in one or more Portfolios of this Fund. The Series Fund is a mutual fund currently offering shares only to The Northwestern Mutual Life Insurance Company and its separate investment accounts. THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY JAMES D. ERICSON James D. Ericson, President and C.E.O. The following table shows the net investment rates of return for each of the divisions of the Variable Life Account. POLICIES ISSUED BEFORE OCTOBER 11, 1995:
FOR THE SIX MONTHS ENDED JUNE 30 FOR THE YEARS ENDED DECEMBER 31 ---------- ------------------------------------------------------------------ DIVISION 1996 1995 1994 1993 1992 1991 1990 1989 1988 - ------------------------------- ---------- ----- ----- ----- ---- ----- ----- ----- ---- Index 500 Stock*............... 9.64% 36.30% 0.51% 9.13% 3.81% 28.88% -4.99% 17.47% 8.07% Growth Stock................... 10.22 29.91 1.08** N/A N/A N/A N/A N/A N/A Growth and Income Stock........ 6.79 30.21 -0.13** N/A N/A N/A N/A N/A N/A Aggressive Growth Stock........ 18.45 38.32 3.98** N/A N/A N/A N/A N/A N/A International Equity........... 8.75 13.78 -0.36** N/A N/A N/A N/A N/A N/A Select Bond.................... -1.76 18.27 -2.96 10.04 6.99 16.51 7.34 13.27 7.47 High Yield Bond................ 6.32 15.96 2.54** N/A N/A N/A N/A N/A N/A Money Market................... 2.21 5.09 3.33 2.19 2.77 5.13 7.49 8.45 6.74 Balanced....................... 4.70 25.51 -0.54 9.14 4.87 22.47 0.81 14.76 7.33
POLICIES ISSUED ON OR AFTER OCTOBER 11, 1995:
FOR THE FOR THE SIX MONTHS PERIOD ENDED ENDED JUNE 30 DECEMBER 31 ---------- ----------- DIVISION 1996 1995+ - ------------------------------------ ---------- ----------- Index 500 Stock..................... 9.70% 6.61% Growth Stock........................ 10.28 6.34 Growth and Income Stock............. 6.85 6.29 Aggressive Growth Stock............. 18.51 9.83 International Equity................ 8.81 2.83 Select Bond......................... -1.71 3.66 High Yield Bond..................... 6.38 0.89 Money Market........................ 2.26 1.10 Balanced............................ 4.75 4.97
+ Reflects actual return from October 11, 1995 (Inception Date) through December 31, 1995. * As of April 30, 1993 the portfolio was indexed to the S&P 500 Stock Index; prior to that date the portfolio was actively managed. ** Growth Stock, Growth and Income Stock, Aggressive Growth Stock, International Equity, and High Yield Bond Divisions began operations on May 3, 1994. The investment rates of return reflect performance from May 3, 1994. The net investment rates of return shown above should not be considered a representation of investment results which may be anticipated in the future. The net investment rates of return include investment income and capital gains. See the prospectus for a description of the effect of investment performance on policy benefits. Policy benefits reflect the investment rates of return of the divisions in which the policy is invested, and will vary depending on the fees and expenses associated with the policy. Policy fees and expenses will vary with each individual investor. All common fees of the divisions of the Variable Life Account are reflected in the net investment rates of return shown above. AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE PORTFOLIO WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. Note: "Standard and Poor's 500" and "S&P 500(R)" are trademarks of McGraw-Hill, Inc. and have been licensed for use by The Northwestern Mutual Life Insurance Company. The Series Funds and its Portfolios are not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in them. 10 14 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (IN THOUSANDS) ASSETS Investments at Market Value: Northwestern Mutual Series Fund, Inc. Index 500 Stock 24,569 shares (cost $35,218)........................................................ $45,256 Growth Stock 6,632 shares (cost $7,682).......................................................... 9,212 Growth and Income Stock 9,290 shares (cost $10,446)......................................................... 11,818 Aggressive Growth Stock 9,373 shares (cost $22,720)......................................................... 29,767 International Equity 14,496 shares (cost $18,716)........................................................ 20,366 Select Bond 4,593 shares (cost $5,321).......................................................... 5,365 High Yield Bond 2,349 shares (cost $2,448).......................................................... 2,556 Money Market 9,837 shares (cost $9,837).......................................................... 9,837 Balanced 58,350 shares (cost $79,177)........................................................ 92,835 $227,012 ------- Due from Sale of Fund Shares........................................................................ 25 Due from Northwestern Mutual Life Insurance Company................................................. 210 -------- Total Assets............................................................................... $227,247 ======== LIABILITIES Due to Northwestern Mutual Life Insurance Company................................................... $ 25 Due on Purchase of Fund Shares...................................................................... 210 -------- Total Liabilities.......................................................................... 235 -------- EQUITY (Note 8) Policies Issued Before October 11, 1995............................................................. 208,941 Policies Issued On or After October 11, 1995........................................................ 18,071 -------- Total Equity............................................................................... 227,012 -------- Total Liabilities and Equity...................................................................... $227,247 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 11 15 NORTHWESTERN MUTUAL LIFE VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (IN THOUSANDS)
INDEX 500 COMBINED STOCK DIVISION GROWTH STOCK DIVISION -------------------------- -------------------------- -------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, ---------- ------------ ---------- ------------ ---------- ------------ 1996 1995 1996 1995 1996 1995 ---------- ------------ ---------- ------------ ---------- ------------ INVESTMENT INCOME Dividend Income....................... $ 8,630 $ 4,153 $ 1,153 $ 282 $ 46 $ 188 Mortality and Expense Risks........... 492 736 98 141 18 21 Taxes................................. 204 314 41 60 7 9 -------- -------- ------- ------- ------ ------ Net Investment Income (Loss).......... 7,934 3,103 1,014 81 21 158 -------- -------- ------- ------- ------ ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized Gain on Investments.......... 1,075 1,300 155 339 49 16 Unrealized Appreciation (Depreciation) of Investments During the Period....... 5,702 30,929 2,543 8,323 648 906 -------- -------- ------- ------- ------ ------ Net Gain (Loss) on Investments........ 6,777 32,229 2,698 8,662 697 922 -------- -------- ------- ------- ------ ------ Increase (Decrease) in Equity Derived from Investment Activity................. 14,711 35,332 3,712 8,743 718 1,080 -------- -------- ------- ------- ------ ------ EQUITY TRANSACTIONS Policyowners' Net Payments............ 42,084 51,813 5,840 11,096 1,281 2,327 Policy Loans, Surrenders, and Death Benefits............................ (7,797) (10,909) (1,733) (2,239) (173) (251) Mortality and Other (net)............. (6,875) (9,537) (1,110) (2,021) (293) (427) Transfers from Other Divisions........ 17,428 12,075 2,930 1,623 1,792 1,048 Transfers to Other Divisions.......... (17,428) (12,075) (867) (2,683) (174) (186) -------- -------- ------- ------- ------ ------ Increase in Equity Derived from Equity Transactions................... 27,412 31,367 5,060 5,776 2,433 2,511 -------- -------- ------- ------- ------ ------ Net Increase in Equity.................. 42,123 66,699 8,772 14,519 3,151 3,591 Equity Beginning of Period................... 184,889 118,190 36,486 21,967 6,061 2,470 -------- -------- ------- ------- ------ ------ End of Period......................... $227,012 $184,889 $ 45,258 $ 36,486 $9,212 $6,061 ======== ======== ======= ======= ====== ======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 12 16 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (IN THOUSANDS)
GROWTH & INCOME AGGRESSIVE GROWTH INTERNATIONAL EQUITY STOCK DIVISION STOCK DIVISION DIVISION SELECT BOND DIVISION --------------------------- --------------------------- --------------------------- --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------ 1996 1995 1996 1995 1996 1995 1996 1995 ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------ $ 212 $ 496 $ 892 $ 54 $ 924 $ 67 $ 176 $ 110 24 30 56 57 42 52 12 20 10 13 23 24 17 22 5 9 ------- ------ ------- ------- ------- ------- ------ ------ 178 453 813 (27) 865 (7) 159 81 ------- ------ ------- ------- ------- ------- ------ ------ 46 25 102 58 17 2 4 13 404 1,057 2,948 3,798 529 1,389 (246) 596 ------- ------ ------- ------- ------- ------- ------ ------ 450 1,082 3,050 3,856 546 1,391 (242) 609 ------- ------ ------- ------- ------- ------- ------ ------ 628 1,535 3,863 3,829 1,411 1,384 (83) 690 ------- ------ ------- ------- ------- ------- ------ ------ 1,908 3,211 4,335 6,744 3,493 6,472 666 1,230 (272) (388) (897) (830) (653) (634) (45) (311) (385) (611) (823) (1,184) (703) (1,156) (112) (234) 1,782 1,329 5,885 3,476 2,692 2,112 452 335 (311) (312) (481) (368) (366) (750) (269) (513) ------- ------ ------- ------- ------- ------- ------ ------ 2,722 3,229 8,019 7,838 4,463 6,044 692 507 ------- ------ ------- ------- ------- ------- ------ ------ 3,350 4,764 11,882 11,667 5,874 7,428 609 1,197 8,467 3,703 17,885 6,218 14,493 7,065 4,756 3,559 ------- ------ ------- ------- ------- ------- ------ ------ $ 11,817 $8,467 $ 29,767 $ 17,885 $ 20,367 $ 14,493 $5,365 $4,756 ======= ====== ======= ======= ======= ======= ====== ======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 13 17 NORTHWESTERN MUTUAL LIFE VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (CONTINUED) (IN THOUSANDS)
HIGH YIELD BOND DIVISION MONEY MARKET DIVISION BALANCED DIVISION ------------------------- ------------------------- ------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, ---------- ------------ ---------- ------------ ---------- ------------ 1996 1995 1996 1995 1996 1995 ---------- ------------ ---------- ------------ ---------- ------------ INVESTMENT INCOME Dividend Income............................. $ 14 $ 183 $ 203 $ 252 $ 5,010 $ 2,521 Mortality and Expense Risks................. 6 8 19 22 217 385 Taxes....................................... 2 3 6 9 93 165 ------ ------ -------- ------- ------- ------- Net Investment Income....................... 6 172 178 221 4,700 1,971 ------ ------ -------- ------- ------- ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized Gain on Investments................ 10 8 -- -- 692 839 Unrealized Appreciation (Depreciation) of Investments During the Period............. 119 29 -- -- (1,243) 14,831 ------ ------ -------- ------- ------- ------- Net Gain (Loss) on Investments.............. 129 37 0 0 (551) 15,670 ------ ------ -------- ------- ------- ------- Increase in Equity Derived from Investment Activity....................... 135 209 178 221 4,149 17,641 ------ ------ -------- ------- ------- ------- EQUITY TRANSACTIONS Policyowners' Net Payments.................. 451 761 16,363 4,335 7,747 15,637 Policy Loans, Surrenders, and Death Benefits.................................. (133) (113) (240) (285) (3,651) (5,858) Mortality and Other (net)................... (90) (149) (1,817) (645) (1,542) (3,110) Transfers from Other Divisions.............. 376 687 631 1,210 888 255 Transfers to Other Divisions................ (330) (181) (12,197) (1,738) (2,433) (5,344) ------ ------ -------- ------- ------- ------- Increase in Equity Derived from Equity Transactions......................... 274 1,005 2,740 2,877 1,009 1,580 ------ ------ -------- ------- ------- ------- Net Increase in Equity........................ 409 1,214 2,918 3,098 5,158 19,221 Equity Beginning of Period......................... 2,147 933 6,919 3,821 87,675 68,454 ------ ------ -------- ------- ------- ------- End of Period............................... $2,556 $2,147 $ 9,837 $ 6,919 $ 92,833 $ 87,675 ====== ====== ======== ======= ======= =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 14 18 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 Note 1 -- Northwestern Mutual Variable Life Account (the "Account") is registered as a unit investment trust under the Investment Company Act of 1940 and is a segregated asset account of The Northwestern Mutual Life Insurance Company ("Northwestern Mutual Life") used to fund variable life insurance policies. Note 2 -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principal accounting policies are summarized below. Note 3 -- All assets of each Division of the Account are invested in shares of the corresponding Portfolio of Northwestern Mutual Series Fund, Inc. (the "Fund"). The shares are valued at the Fund's offering and redemption price per share. The Northwestern Mutual Series Fund, Inc. is a diversified open-end investment company registered under the Investment Company Act of 1940. Note 4 -- Dividend income from the Fund is recorded on the record date of the dividends. Transactions in Fund shares are accounted for on the trade date. The basis for determining cost on sale of Fund shares is identified cost. Purchases and sales of Fund shares for the six months ended June 30, 1996 by each Division are shown below:
PURCHASES SALES ---------- ---------- Index 500 Stock Division... $6,567,972 $ 495,299 Growth Stock Division...... 2,635,513 181,455 Growth and Income Stock Division................. 3,115,698 215,618 Aggressive Growth Division................. 9,096,795 264,736 International Equity Division................. 5,456,013 128,100 Select Bond Division....... 1,066,719 215,533 High Yield Bond Division... 622,184 342,453 Money Market Division...... 7,473,484 4,554,988 Balanced Division.......... 8,502,762 2,792,488
Note 5 -- A deduction for mortality and expense risks is determined daily and paid to Northwestern Mutual Life. Generally, for policies issued before October 11, 1995, and policies issued on or after October 11, 1995 the deduction is at an annual rate of .50% and .60%, respectively, of the net assets of the Account. The mortality risk is that insureds may not live as long as estimated. The expense risk is that expenses of issuing and administering the policies may exceed the estimated costs. Certain deductions are also made from the annual or single premiums before amounts are allocated to the Account. These deductions are for (1) sales load, (2) administrative expenses, (3) taxes and (4) a risk charge for the guaranteed minimum death benefit. Additional mortality costs are deducted from the policy annually and are paid to Northwestern Mutual Life to cover the cost of providing insurance protection. This cost is actuarially calculated based upon the insured's age, the 1980 Commissioners Standard Ordinary Mortality Table and the amount of insurance provided under the policy. Note 6 -- Northwestern Mutual Life is taxed as a "life insurance company" under the Internal Revenue Code. The variable life insurance policies which are funded in the Account are taxed as part of the operations of Northwestern Mutual Life. Policies provide that a charge for taxes may be made against the assets of the Account. Generally, for policies issued before October 11, 1995, Northwestern Mutual Life charges the Account at an annual rate of .20% of the Account's net assets and reserves the right to increase, decrease or eliminate the charge for taxes in the future. Generally, for policies issued on or after October 11, 1995, there is no charge being made against the assets of the Account for federal income taxes, but Northwestern Mutual Life reserves the right to charge for taxes in the future. Note 7 -- The Account is credited for the policyowners' net annual premiums at the respective policy anniversary dates regardless of when policyowners actually pay their premiums. Northwestern Mutual Life's equity represents any unpaid portion of net annual premiums. 15 19 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 (IN THOUSANDS) Note 8 -- Equity Values by Division are shown below:
POLICIES ISSUED BEFORE OCTOBER 11, 1995 EQUITY OF: ------------------------- TOTAL POLICYOWNERS NML EQUITY ------------ ------- -------- Index 500 Stock Division........................................ $ 37,620 $ 5,127 $ 42,747 Growth Stock Division........................................... 6,793 1,223 8,016 Growth and Income Stock Division................................ 8,820 1,675 10,495 Aggressive Growth Stock Division................................ 21,643 3,635 25,278 International Equity Division................................... 15,501 3,137 18,638 Select Bond Division............................................ 4,554 553 5,107 High Yield Bond Division........................................ 1,904 371 2,275 Money Market Division........................................... 4,094 290 4,384 Balanced Division............................................... 85,670 6,331 92,001 -------- ------- -------- $186,599 $22,342 $208,941 ======== ======= ========
POLICIES ISSUED ON OR AFTER OCTOBER 11, 1995 EQUITY OF: ------------------------- TOTAL POLICYOWNERS NML EQUITY ------------ ------- -------- Index 500 Stock Division........................................ $ 860 $ 1,649 $ 2,509 Growth Stock Division........................................... 407 789 1,196 Growth and Income Stock Division................................ 503 820 1,323 Aggressive Growth Stock Division................................ 1,848 2,642 4,490 International Equity Division................................... 608 1,120 1,728 Select Bond Division............................................ 114 144 258 High Yield Bond Division........................................ 112 169 281 Money Market Division........................................... 893 4,560 5,453 Balanced Division............................................... 375 458 833 -------- ------- -------- $ 5,720 $12,351 $ 18,071 ======== ======= ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 16 20 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stocks (cost $403,717).................. $565,267 Money Market Investments (cost $44,662)................... 44,660 Preferred Stocks (cost $1)........................ 4 -------- 609,931 Cash................................ 627 Dividends and Interest Receivable... 733 Futures Variation Margin............ 228 Due from Sale of Fund Shares........ 143 -------- Total Assets................... 611,662 -------- LIABILITIES Due on Redemption of Fund Shares.... 518 Due to Investment Advisor........... 93 Accrued Expenses.................... 19 -------- Total Liabilities.............. 630 -------- NET ASSETS............................ $611,032 ======== REPRESENTED BY: Aggregate Paid in Capital (500,000 shares authorized, $.01 par value; 331,716 shares outstanding).............. $434,696 Undistributed Net Investment Income........................... 6,331 Undistributed Accumulated Net Realized Gain on Investments..... 7,559 Net Unrealized Appreciation of: Investment Securities............ 161,551 Index Futures Contracts.......... 895 -------- Net Assets for 331,716 Shares Outstanding...................... $611,032 ======== Net Asset Value, Offering and Redemption Price per Share....... $1.84
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $42)..................... $ 5,494 Interest.......................... 1,412 -------- Total Income.................... 6,906 -------- Expenses Management Fees................... 552 Custodian Fees.................... 33 Other Expenses.................... 23 -------- Total Expenses.................. 608 -------- Less Custodian Fees: Paid by Affiliate.......... (29) Paid Indirectly............ (4) -------- Total Net Expenses.............. 575 -------- Net Investment Income................ 6,331 -------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments: Investment Securities............. 4,923 Index Futures Contracts........... 2,998 -------- Net Realized Gain on Investments for the Period... 7,921 -------- Net Change in Unrealized Appreciation of: Investment Securities............. 38,134 Index Futures Contracts........... 147 -------- Net Change in Unrealized Appreciation of Investments for the Period................... 38,281 -------- Net Gain on Investments.............. 46,202 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......... $52,533 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 17 21 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ----------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 6,331 $ 10,021 Net Realized Gain on Investments........................................ 7,921 8,912 Net Change in Unrealized Appreciation of Investments for the Period..... 38,281 105,468 -------- -------- Net Increase in Net Assets Resulting from Operations.................. 52,533 124,401 -------- -------- Dividends to Shareholders from: Net Investment Income................................................... (6,192) (3,894) Net Realized Gain on Investments........................................ (9,632) -- -------- -------- Net Decrease in Net Assets Resulting from Dividend to Shareholders.... (15,824) (3,894) -------- -------- Fund Share Transactions Proceeds from Sale of 39,509 and 47,195 Shares.......................... 71,202 72,382 Proceeds from Shares Issued on Reinvestment of Dividends Paid (9,021 and 2,593 shares, respectively)................................ 15,824 3,894 Payments for 4,332 and 11,954 Shares Redeemed........................... (7,836) (17,773) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (44,198 and 37,834 shares, respectively)........................... 79,190 58,503 -------- -------- Total Increase in Net Assets............................................... 115,899 179,010 NET ASSETS Beginning of Period........................................................ 495,133 316,123 -------- -------- End of Period (includes undistributed net investment income of $6,331 and $6,192 respectively)......................................... $ 611,032 $495,133 ======== ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 18 22 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE SIX MONTHS FOR THE YEARS ENDED ENDED DECEMBER 31, JUNE 30, 1996 ------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ------------- -------- -------- ------- ------- ------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Period....... $ 1.72 $ 1.27 $ 1.29 $1.33 $1.31 $1.04 Income from Investment Operations: Net Investment Income................. 0.02 0.04 0.03 0.04 0.03 0.03 Net Realized and Unrealized Gain (Loss) on Investments............... 0.15 0.42 (0.01) 0.09 0.03 0.27 --------- ----- --- ----- --- ------- --- --- --- --- - - Total from Investment Operations.... 0.17 0.46 0.02 0.13 0.06 0.30 --------- ----- --- ----- --- ------- --- --- --- --- - - Less Distributions: Dividends from Net Investment Income.............................. (0.02) (0.01) (0.03) (0.03) (0.03) (0.03) Distributions from Realized Gains on Investments......................... (0.03) -- (0.01) (0.14) (0.01) -- --------- ----- --- ----- --- ------- --- --- --- --- - - Total Distributions................. (0.05) (0.01) (0.04) (0.17) (0.04) (0.03) --------- ----- --- ----- --- ------- --- --- --- --- - - Net Asset Value, End of Period............. $ 1.84 $ 1.72 $ 1.27 $1.29 $1.33 $1.31 ========= ======== ======== ======= ======= ======= Total Return+.............................. 10.03++ 37.25% 1.21% 9.90% 4.54% 29.78% ========= ======== ======== ======= ======= ======= RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)... $611,032 $495,133 $316,123 $25,479 $17,288 $14,115 ========= ======== ======== ======= ======= ======= Ratio of Expenses to Average Net Assets.... 0.21%* 0.21% 0.24% 0.30% 0.30% 0.30% ========= ======== ======== ======= ======= ======= Ratio of Net Investment Income to Average Net Assets............................... 2.27%* 2.51% 3.10% 2.55% 2.61% 2.88% ========= ======== ======== ======= ======= ======= Portfolio Turnover Rate.................... 1.91% 3.19% 5.59% 62.69% 39.93% 40.16% ========= ======== ======== ======= ======= =======
* Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 19 23 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stocks (cost $98,082)................... $117,839 Money Market Investments (cost $8,180).................... 8,180 -------- 126,019 Cash................................ 269 Due from Sale of Securities......... 373 Due from Sale of Fund Shares........ 297 Dividends and Interest Receivable... 120 -------- Total Assets................... 127,078 -------- LIABILITIES Due on Purchase of Securities....... 705 Due to Investment Advisor........... 49 Due on Redemption of Fund Shares.... 14 Accrued Expenses.................... 13 -------- Total Liabilities.............. 781 -------- NET ASSETS............................ $126,297 ======== REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 90,897 shares outstanding)..................... $103,053 Undistributed Net Investment Income........................... 759 Undistributed Accumulated Net Realized Gain on Investments.............. 2,723 Net Unrealized Appreciation of: Investment Securities............ 19,757 Foreign Currency Transactions.... 5 -------- Net Assets for 90,897 Shares Outstanding...................... $126,297 ======== Net Asset Value, Offering and Redemption Price per Share....... $1.39
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $3)...................... $ 855 Interest.......................... 210 ------- Total Income.................... 1,065 ------- Expenses Management Fees................... 281 Custodian Fees.................... 9 Other Expenses.................... 25 ------- Total Expenses.................. 315 ------- Less Custodian Fees: Paid by Affiliate............ (7) Paid Indirectly.............. (2) ------- Total Net Expenses.............. 306 ------- Net Investment Income................ 759 ------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES Net Realized Gain on Investments..... 2,723 Net Change in Unrealized Appreciation of: Investment Securities............. 6,774 Foreign Currency Transactions..... 2 ------- Net Change in Unrealized Appreciation of Investments for the Period... 6,776 ------- Net Gain on Investments.............. 9,499 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $10,258 =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 20 24 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 759 $ 1,109 Net Realized Gain on Investments........................................ 2,723 2,321 Net Change in Unrealized Appreciation of Investments for the Period..... 6,776 13,078 -------- ------- Net Increase in Net Assets Resulting from Operations.................. 10,258 16,508 -------- ------- Dividends to Shareholders from: Net Investment Income................................................... (11) (1,105) Net Realized Gain on Investments........................................ (621) (1,582) -------- ------- Net Decrease in Net Assets Resulting from Dividends to Shareholders... (632) (2,687) -------- ------- Fund Share Transactions Proceeds from Sale of 23,218 and 24,515 Shares.......................... 31,201 28,181 Proceeds from Shares Issued on Reinvestment of Dividends Paid (476 and 2,177 shares, respectively).................................. 632 2,687 Payments for 531 and 866 Shares Redeemed................................ (719) (1,000) -------- ------- Net Increase in Net Assets Resulting from Fund Share Transactions (23,163 and 25,826 shares, respectively)........................... 31,114 29,868 -------- ------- Total Increase in Net Assets............................................... 40,740 43,689 NET ASSETS Beginning of Period........................................................ 85,557 41,868 -------- ------- End of Period (includes undistributed net investment income of $759 and $11, respectively)............................................. $126,297 $ 85,557 ======== =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 21 25 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE FOR THE PERIOD SIX MONTHS MAY 3, ENDED FOR THE 1994* JUNE 30, YEAR ENDED THROUGH 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 1994 ----------- ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Period........................... $ 1.26 $ 1.00 $ 1.00 Income from Investment Operations: Net Investment Income..................................... 0.01 0.02 0.01 Net Realized and Unrealized Gains on Investments.......... 0.13 0.28 -- -------- --- --- -- --- --- -- Total from Investment Operations........................ 0.14 0.30 0.01 -------- --- --- -- --- --- -- Less Distributions: Dividends from Net Investment Income...................... -- (0.02) (0.01) Distributions from Realized Gains on Investments.......... (0.01) (0.02) -- -------- --- --- -- --- --- -- Total Distributions..................................... (0.01) (0.04) (0.01) -------- --- --- -- --- --- -- Net Asset Value, End of Period................................. $ 1.39 $ 1.26 $ 1.00 ======== ======== ======== Total Return+.................................................. 10.60%++ 30.82% 1.55%++ ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)....................... $126,297 $85,557 $41,868 ======== ======== ======== Ratio of Expenses to Average Net Assets........................ 0.55%** 0.61% 0.71%** ======== ======== ======== Ratio of Net Investment Income to Average Net Assets........... 1.43%** 1.77% 2.30%** ======== ======== ======== Portfolio Turnover Rate........................................ 20.14% 46.83% 16.51% ======== ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 22 26 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stocks (cost $164,916)................... $177,880 Money Market Investments (cost $6,785)..................... 6,785 -------- 184,665 Cash................................. 389 Due from Sale of Securities.......... 530 Dividends and Interest Receivable.... 262 Due from Sale of Fund Shares......... 91 -------- Total Assets.................... 185,937 -------- LIABILITIES Due to Investment Advisor............ 86 Accrued Expenses..................... 25 Due on Redemption of Fund Shares..... 19 Due on Purchase of Securities........ 3 -------- Total Liabilities............... 133 -------- NET ASSETS............................. $185,804 ======== REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 146,104 shares outstanding)...................... $162,045 Undistributed Net Investment Income............................ 1,284 Undistributed Accumulated Net Realized Gain on Investments...... 9,511 Net Unrealized Appreciation of Investments....................... 12,964 -------- Net Assets for 146,104 Shares Outstanding....................... $185,804 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.27
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $15)...................... $ 1,627 Interest........................... 162 ------- Total Income..................... 1,789 ------- Expenses Management Fees.................... 492 Custodian Fees..................... 14 Other Expenses..................... 13 ------- Total Expenses................... 519 ------- Less Custodian Fees: Paid by Affiliate........... (11) Paid Indirectly............. (3) ------- Total Net Expenses............... 505 ------- Net Investment Income................. 1,284 ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain on Investments...... 9,511 Net Change in Unrealized Depreciation of Investments for the Period...... (230) ------- Net Gain on Investments............... 9,281 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $10,565 =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 23 27 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 1,284 $ 1,680 Net Realized Gain on Investments........................................ 9,511 9,722 Net Change in Unrealized Appreciation (Depreciation) of Investments for the Period........................................................ (230) 14,711 --------- --------- Net Increase in Net Assets Resulting from Operations.................. 10,565 26,113 --------- --------- Dividends to Shareholders from: Net Investment Income................................................... (17) (1,667) Net Realized Gain on Investments........................................ (3,389) (6,435) --------- --------- Net Decrease in Net Assets Resulting from Dividend to Shareholders.... (3,406) (8,102) --------- --------- Fund Share Transactions Proceeds from Sale of 31,096 and 41,708 Shares.......................... 39,349 47,441 Proceeds from Shares Issued on Reinvestment of Dividends Paid (2,726 and 6,769 shares, respectively)................................ 3,406 8,102 Payments for 808 and 1,144 Shares Redeemed.............................. (1,033) (1,331) --------- --------- Net Increase in Net Assets Resulting from Fund Share Transactions (33,014 and 47,333 shares, respectively)........................... 41,722 54,212 --------- --------- Total Increase in Net Assets............................................... 48,881 72,223 NET ASSETS Beginning of Period........................................................ 136,923 64,700 --------- --------- End of Period (includes undistributed net investment income of $1,284 and $17, respectively)........................................... $185,804 $136,923 ========= =========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 24 28 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE FOR THE PERIOD SIX MONTHS MAY 3, ENDED FOR THE 1994* JUNE 30, YEAR ENDED THROUGH 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 1994 ----------- ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Period......................... $ 1.21 $ 0.98 $ 1.00 Income from Investment Operations: Net Investment Income................................... 0.01 0.02 0.01 Net Realized and Unrealized Gains on Investments........ 0.08 0.29 (0.01) -------- ----- --- ------- Total from Investment Operations...................... 0.09 0.31 (0.00) -------- ----- --- ------- Less Distributions: Dividends from Net Investment Income.................... -- (0.02) (0.01) Distributions from Realized Gains on Investments........ (0.03) (0.06) (0.01) -------- ----- --- ------- Total Distributions................................... (0.03) (0.08) (0.02) -------- ----- --- ------- Net Asset Value, End of Period............................... $ 1.27 $ 1.21 $ 0.98 ======== ======== ======= Total Return+................................................ 7.16%++ 31.12% 0.34%++ ======== ======== ======= RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)..................... $185,804 $136,923 $64,700 ======== ======== ======= Ratio of Expenses to Average Net Assets...................... 0.62%** 0.69% 0.78%** ======== ======== ======= Ratio of Net Investment Income to Average Net Assets......... 1.58%** 1.68% 1.93%** ======== ======== ======= Portfolio Turnover Rate...................................... 43.06% 80.00% 54.18% ======== ======== =======
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 25 29 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stocks (cost $496,806).................. $ 746,093 Money Market Investments (cost $53,273)................... 53,273 -------- 799,366 Cash................................ 1,886 Due from Sale of Securities......... 2,797 Due from Sale of Fund Shares........ 49 Dividends and Interest Receivable... 49 -------- Total Assets................... 804,147 -------- LIABILITIES Due on Purchase of Securities....... 5,707 Due to Investment Advisor........... 323 Due on Redemption of Fund Shares.... 177 Accrued Expenses.................... 22 -------- Total Liabilities.............. 6,229 -------- NET ASSETS............................ $ 797,918 ======== REPRESENTED BY: Aggregate Paid in Capital (700,000 shares authorized, $.01 par value; 251,258 shares outstanding)..................... $ 500,865 Undistributed Net Investment Loss... (264) Undistributed Accumulated Net Realized Gain on Investments..... 48,030 Net Unrealized Appreciation of Investments...................... 249,287 -------- Net Assets for 251,258 Shares Outstanding...................... $ 797,918 ======== Net Asset Value, Offering and Redemption Price per Share....... $3.18
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Interest......................... $ 1,178 Dividends (less foreign dividend tax of $2)..................... 367 -------- Total Income................... 1,545 -------- Expenses Management Fees.................. 1,796 Custodian Fees................... 20 Other............................ 13 -------- Total Expenses................. 1,829 -------- Less Custodian Fees: Paid by Affiliate......... (10) Paid Indirectly........... (10) -------- Total Net Expenses............. 1,809 -------- Net Investment Loss................. (264) -------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments.... 48,030 Net Change in Unrealized Appreciation of Investments for the Period....................... 67,014 -------- Net Gain on Investments............. 115,044 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $ 114,780 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 26 30 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income (Loss)............................................ $ (264) $ 572 Net Realized Gain on Investments........................................ 48,030 24,986 Net Change in Unrealized Appreciation of Investments for the Period..... 67,014 124,412 --------- --------- Net Increase in Net Assets Resulting from Operations.................. 114,780 149,970 --------- --------- Dividends to Shareholders from: Net Investment Income................................................... (572) (503) Net Realized Gain on Investments........................................ (24,986) (1,836) --------- --------- Net Decrease in Net Assets Resulting from Dividend to Shareholders.... (25,558) (2,339) --------- --------- Fund Share Transactions Proceeds from Sale of 35,751 and 50,142 Shares............................. 108,986 115,824 Proceeds from Shares Issued on Reinvestment of Dividends Paid (8,276 and 1,097 shares, respectively).................................. 25,558 2,339 Payments for 977 and 6,659 Shares Redeemed................................. (2,862) (15,876) --------- --------- Net Increase in Net Assets Resulting from Fund Share Transactions (43,050 and 44,580 shares, respectively).............................. 131,682 102,287 --------- --------- Total Increase in Net Assets............................................... 220,904 249,918 NET ASSETS Beginning of Period........................................................ 577,014 327,096 --------- --------- End of Period (includes undistributed net investment (loss)/income of ($264) and $572, respectively).......................................... $797,918 $577,014 ========= =========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 27 31 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE FOR THE PERIOD SIX MONTHS MAY 3, ENDED FOR THE 1994* JUNE 30, YEAR ENDED THROUGH 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 1994 ----------- ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Period........................... $ 2.77 $ 2.00 $ 1.91 Income from Investment Operations: Net Investment Income..................................... -- -- -- Net Realized and Unrealized Gains on Investments.......... 0.52 0.78 0.09 --------- ----- ---- ----- ---- Total from Investment Operations........................ 0.52 0.78 0.09 --------- ----- ---- ----- ---- Less Distributions: Dividends from Net Investment Income...................... -- -- -- Distributions from Realized Gains on Investments.......... (0.11) (0.01) -- --------- ----- ---- ----- ---- Total Distributions..................................... (0.11) (0.01) -- --------- ----- ---- ----- ---- Net Asset Value, End of Period................................. $ 3.18 $ 2.77 $ 2.00 ========= ========= ========= Total Return+.................................................. 18.86%++ 39.29% 4.47%++ ========= ========= ========= RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)....................... $797,918 $577,014 $327,096 ========= ========= ========= Ratio of Expenses to Average Net Assets........................ 0.53%** 0.56% 0.58%** ========= ========= ========= Ratio of Net Investment Income/(Loss) to Average Net Assets.... (.08%)** 0.13% 0.29%** ========= ========= ========= Portfolio Turnover Rate........................................ 26.74% 37.84% 21.54% ========= ========= =========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 28 32 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stocks (cost $302,135)................... $351,549 Money Market Investments (cost $51,924).................... 51,924 Bonds (cost $14,284).................... 14,360 -------- 417,833 Cash................................. 1 Due from Sale of Securities.......... 53,934 Dividends and Interest Receivable.... 2,425 Due from Foreign Currency Contracts......................... 2,095 Due from Purchase of Fund Shares..... 357 -------- Total Assets.................... 476,645 -------- LIABILITIES Due on Purchase of Securities........ 54,190 Due on Foreign Currency Contracts.... 2,087 Due on Sale of Fund Shares........... 255 Accrued Expenses..................... 235 Due to Investment Advisor............ 229 -------- Total Liabilities............... 56,996 -------- NET ASSETS............................. $419,649 ======== REPRESENTED BY: Aggregate Paid in Capital (700,000 shares authorized, $.01 par value; 298,651 shares outstanding)....... $360,202 Undistributed Net Investment Income............................ 7,658 Undistributed Accumulated Net Realized Gain on Investments...... 2,311 Net Unrealized Appreciation (Depreciation) of: Investment Securities............. 49,490 Foreign Currency Transactions..... (12) -------- Net Assets for 298,651 Shares Outstanding....................... $419,649 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.41
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $874)..................... $ 7,287 Interest........................... 1,409 Other Income....................... 11 ------- Total Income..................... 8,707 ------- Reimbursement of Foreign Dividend Tax by Affiliate................. 438 ------- Total Net Income................. 9,145 ------- Expenses Management Fees.................... 1,291 Custodian Fees..................... 201 Other Expenses..................... 80 ------- Total Expenses................... 1,572 ------- Net Investment Income................. 7,573 ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES Net Realized Gain (Loss) on: Investment Securities.............. 3,091 Foreign Currency Transactions...... (328) ------- Net Realized Gain for the Period........................ 2,763 Net Change in Unrealized Appreciation of: Investment Securities.............. 22,257 Foreign Currency Transactions...... 142 ------- Net Change in Unrealized Appreciation for the Period... 22,399 ------- Net Gain on Investments............... 25,162 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $32,735 =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 29 33 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE FOR THE SIX MONTHS YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 7,573 $ 8,437 Net Realized Gain on Investments........................................ 2,763 11,455 Net Change in Unrealized Appreciation of Investments for the Period..... 22,399 22,907 --------- --------- Net Increase in Net Assets Resulting from Operations.................. 32,735 42,799 --------- --------- Dividends to Shareholders from: Net Investment Income................................................... (8,311) -- Net Realized Gain on Investments........................................ (11,653) (2,171) --------- --------- Net Decrease in Net Assets Resulting from Dividend to Share........... (19,964) (2,171) --------- --------- Fund Share Transactions Proceeds from Sale of 35,551 and 28,399 Shares.......................... 50,087 35,839 Proceeds from Shares Issued on Reinvestment of Dividends Paid (14,363 and 1,740 shares, respectively)............................... 19,964 2,171 Payments for 3,759 and 23,252 Shares Redeemed........................... (5,300) (29,044) --------- --------- Net Decrease in Net Assets Resulting from Fund Share Transactions (46,155 and 6,887 shares, respectively)............................ 64,751 8,966 --------- --------- Total Increase in Net Assets................................................. 77,522 49,594 NET ASSETS Beginning of Period........................................................ 342,127 292,533 --------- --------- End of Period (includes undistributed net investment income of $7,658 and $8,396, respectively)........................................ $419,649 $342,127 ========= =========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 30 34 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE FOR THE SIX MONTHS PERIOD ENDED FOR THE MAY 3, 1994* JUNE 30, YEAR ENDED THROUGH 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 1994 ----------- ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Period........................... $ 1.35 $ 1.19 $ 1.22 Income from Investment Operations: Net Investment Income..................................... 0.03 0.04 0.02 Net Realized and Unrealized Gain (Loss) on Investments.... 0.10 0.13 (0.02) -------- -------- -------- Total from Investment Operations........................ 0.13 0.17 0.00 -------- -------- -------- Less Distributions: Dividends from Net Investment Income...................... (0.03) -- (0.02) Distributions from Realized Gains on Investments.......... (0.04) (0.01) (0.01) -------- -------- -------- Total Distributions..................................... (0.07) (0.01) (0.03) -------- -------- -------- Net Asset Value, End of Period................................. $ 1.41 $ 1.35 $ 1.19 ======== ======== ======== Total Return+.................................................. 9.13%++ 14.57% 0.11%++ ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)....................... $419,649 $342,127 $292,533 ======== ======== ======== Ratio of Expenses to Average Net Assets........................ 0.82%** 0.85% 0.87%** ======== ======== ======== Ratio of Net Investment Income to Average Net Assets........... 3.95%** 2.68% 2.28%** ======== ======== ======== Portfolio Turnover Rate........................................ 6.31% 26.71% 10.97% ======== ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 31 35 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Bonds (cost $160,416).................. $160,337 Money Market Investments (cost $39,602)................... 39,609 -------- 199,946 Cash................................ 84 Interest Receivable................. 2,676 -------- Total Assets................... 202,706 -------- LIABILITIES Due on Redemption of Fund Shares.... 500 Due to Investment Advisor........... 46 -------- Total Liabilities.............. 546 -------- NET ASSETS............................ $202,160 ======== REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 173,146 shares outstanding)..................... $197,636 Undistributed Net Investment Income........................... 6,252 Undistributed Accumulated Net Realized Loss on Investments..... (1,656) Net Unrealized Depreciation of Investments...................... (72) -------- Net Assets for 173,146 Shares Outstanding...................... $202,160 ======== Net Asset Value, Offering and Redemption Price per Share....... $1.17
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Interest.......................... $ 6,536 ------ Expenses Management Fees................... 296 ------ Net Investment Income................ 6,240 ------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net Realized Loss on Investments..... (318) Net Unrealized Depreciation of Investments for the Period........ (8,843) ------ Net Loss on Investments.............. (9,161) ------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $(2,921) ======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 32 36 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 6,240 $ 11,680 Net Realized Gain (Loss) on Investments................................. (318) 1,666 Net Change in Unrealized Appreciation (Depreciation) of Investments for the Period........................................................ (8,843) 17,183 -------- -------- Net Increase (Decrease) in Net Assets Resulting from Operations....... (2,921) 30,529 -------- -------- Dividends to Shareholders from: Net Investment Income................................................... (7,025) (4,709) Net Realized Gain on Investments........................................ -- -- -------- -------- Net Decrease in Net Assets Resulting from Dividend to Shareholders.... (7,025) (4,709) -------- -------- Fund Share Transactions Proceeds from Sale of 13,882 and 20,151 Shares.......................... 16,649 23,377 Proceeds from Shares Issued on Reinvestment of Dividends Paid (6,130 and 4,071 shares, respectively)................................ 7,025 4,709 Payments for 8,203 and 12,511 Shares Redeemed........................... (9,710) (14,272) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (11,809 and 11,711 shares, respectively)........................... 13,964 13,814 -------- -------- Total Increase in Net Assets............................................... 4,018 39,634 NET ASSETS Beginning of Period........................................................ 198,142 158,508 -------- -------- End of Period (includes undistributed net investment income of $6,252 and $7,037 respectively)......................................... $202,160 $198,142 ======== ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 33 37 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE SIX MONTHS ENDED FOR THE YEARS JUNE 30, ENDED DECEMBER 31, 1996 ---------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ----------- -------- -------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Period............. $ 1.23 $ 1.06 $ 1.15 $ 1.14 $ 1.18 $ 1.09 Income from Investment Operations: Net Investment Income....................... 0.04 0.07 0.06 0.08 0.09 0.09 Net Realized and Unrealized Loss on Investments............................... (0.06) 0.13 (0.08) 0.05 -- 0.09 -------- ----- --- ----- --- ----- --- ----- --- ----- --- Total from Investment Operations.......... (0.02) 0.20 (0.03) 0.13 0.09 0.18 -------- ----- --- ----- --- ----- --- ----- --- ----- --- Less Distributions: Dividends from Net Investment Income........ (0.04) (0.03) (0.06) (0.08) (0.09) (0.09) Distributions from Realized Gains on Investments............................... -- -- -- (0.04) (0.04) -- -------- ----- --- ----- --- ----- --- ----- --- ----- --- Total Distributions....................... (0.04) (0.03) (0.06) (0.12) (0.12) (0.09) -------- ----- --- ----- --- ----- --- ----- --- ----- --- Net Asset Value, End of Period................... $ 1.17 $ 1.23 $ 1.06 $ 1.15 $ 1.14 $ 1.18 ======== ======== ======== ======== ======== ======== Total Return+.................................... (1.41%)++ 19.10% (2.28%) 10.81% 7.74% 17.32% ======== ======== ======== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)......... $202,160 $198,142 $158,508 $17,485 $15,851 $14,703 ======== ======== ======== ======== ======== ======== Ratio of Expenses to Average Net Assets.......... 0.30% * 0.30% 0.30% 0.30% 0.30% 0.30% ======== ======== ======== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets......................................... 6.21% * 6.61% 7.02% 6.40% 7.52% 8.11% ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate.......................... 90.44% 69.06% 108.00% 67.69% 63.29% 60.88% ======== ======== ======== ======== ======== ========
* Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 34 38 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Bonds (cost $62,576).................... $62,458 Preferred Stock (cost $5,162)..................... 5,308 Money Market Investments (cost $3,995)..................... 3,995 Common Stock (cost $88)........................ 62 ------- 71,823 Dividends and Interest Receivable.... 908 ------- Total Assets.................... 72,731 ------- LIABILITIES Due on Purchase of Securities........ 3,255 Due on Redemption of Fund Shares..... 225 Due to Investment Advisor............ 30 Accrued Expenses..................... 15 ------- Total Liabilities............... 3,525 ------- NET ASSETS............................. $69,206 ======= REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 63,600 shares outstanding)...................... $65,077 Undistributed Net Investment Income............................ 2,761 Undistributed Accumulated Net Realized Gain on Investments...... 1,366 Net Unrealized Appreciation of Investments....................... 2 ------- Net Assets for 63,600 Shares Outstanding....................... $69,206 ======= Net Asset Value, Offering and $1.09 Redemption Price per Share........... =======
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Interest........................... $2,967 Other Income....................... 94 ------ Total Income..................... 3,061 ------ Expenses Management Fees....................... 179 Custodian Fees........................ 6 Other Expenses........................ 10 ------ Total Expenses................... 195 ------ Less Custodian Fees: Paid by Affiliate........... (2) Paid Indirectly............. (4) ------ Total Net Expenses............... 189 ------ Net Investment Income................. 2,872 ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain on Investments...... 1,366 Net Change in Unrealized Depreciation of Investments for the Period...... (232) ------ Net Gain on Investments............... 1,134 ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $4,006 ======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 35 39 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income........................................................ $ 2,872 $ 4,548 Net Realized Gain on Investments............................................. 1,366 970 Net Change in Unrealized Appreciation (Depreciation) of Investments for the Period............................................................. (232) 1,206 ------- ------- Net Increase in Net Assets Resulting from Operations....................... 4,006 6,724 ------- ------- Dividends to Shareholders from: Net Investment Income........................................................ (73) (4,604) Net Realized Gain on Investments............................................. (323) (465) ------- ------- Net Decrease in Net Assets Resulting from Dividend to Shareholders......... (396) (5,069) ------- ------- Fund Share Transactions Proceeds from Sale of 9,902 and 14,751 Shares................................ 10,511 15,535 Proceeds from Shares Issued on Reinvestment of Dividends Paid (373 and 4,919 shares, respectively)....................................... 396 5,069 Payments for 1,211 and 1,724 Shares Redeemed................................. (1,285) (1,822) ------- ------- Net Increase in Net Assets Resulting from Fund Share Transactions (9,064 and 17,946 shares, respectively)................................. 9,622 18,782 ------- ------- Total Increase in Net Assets.................................................... 13,232 20,437 NET ASSETS Beginning of Period............................................................. 55,974 35,537 ------- ------- End of Period (includes underdistributed and overdistributed net investment income of $2,761 and ($38), respectively).............................................. $ 69,206 $ 55,974 ======= =======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 36 40 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE FOR THE PERIOD SIX MONTHS MAY 3, ENDED FOR THE 1994* JUNE 30, YEAR ENDED THROUGH 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 1994 ----------- ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Period........................... $1.03 $ 0.97 $ 1.00 Income from Investment Operations: Net Investment Income..................................... 0.05 0.10 0.06 Net Realized and Unrealized Gain (Loss) on Investments.... 0.02 0.07 (0.03) --------- ----- ---- ----- ---- Total from Investment Operations........................ 0.07 0.17 0.03 --------- ----- ---- ----- ---- Less Distributions: Dividends from Net Investment Income...................... -- (0.10) (0.06) Distributions from Realized Gains on Investments.......... (0.01) (0.01) -- --------- ----- ---- ----- ---- Total Distributions..................................... (0.01) (0.11) (0.06) --------- ----- ---- ----- ---- Net Asset Value, End of Period................................. $1.09 $ 1.03 $ 0.97 ========= ========= ========= Total Return+.................................................. 6.70%++ 16.78% 3.02%++ ========= ========= ========= RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)....................... $69,206 $55,974 $35,537 ========= ========= ========= Ratio of Expenses to Average Net Assets........................ 0.60%** 0.65% 0.73%** ========= ========= ========= Ratio of Net Investment Income to Average Net Assets........... 9.16%** 9.90% 9.40%** ========= ========= ========= Portfolio Turnover Rate........................................ 75.74% 116.57% 119.48% ========= ========= =========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 37 41 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Money Market Investments (cost $142,363)................... $142,363 Cash................................. 16 Due from Sale of Fund Shares......... 778 Interest Receivable.................. 292 -------- Total Assets.................... 143,449 -------- LIABILITIES Due to Investment Advisor............ 33 Due on Redemption of Fund Shares..... 5 -------- Total Liabilities............... 38 -------- NET ASSETS............................. $143,411 ======== REPRESENTED BY: Aggregate Paid in Capital (300,000 shares authorized, $.01 par value; 143,427 shares outstanding)...................... $143,411 -------- Net Assets for 143,427 Shares Outstanding....................... $143,411 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.00 ======
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Interest............................ $3,676 ------ Expenses Management Fees..................... 203 ------ Net Investment Income.................. 3,473 ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $3,473 ======
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 38 42 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1996 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................... $ 3,473 $ 6,333 --------- --------- Net Increase in Net Assets Resulting from Operations.................. 3,473 6,333 --------- --------- Dividends to Shareholders from: Net Investment Income................................................... (3,473) (6,333) --------- --------- Net Decrease in Net Assets Resulting from Dividend to Shareholders.... (3,473) (6,333) --------- --------- Fund Share Transactions Proceeds from Sale of 47,658 and 74,140 Shares.......................... 47,658 74,140 Proceeds from Shares Issued on Reinvestment of Dividend Paid (3,473 and 6,333 shares, respectively)................................ 3,473 6,333 Payments for 40,292 and 52,118 Shares Redeemed.......................... (40,292) (52,118) --------- --------- Net Increase in Net Assets Resulting from Fund Share Transactions (10,839 and 28,355 shares, respectively)........................... 10,839 28,355 --------- --------- Total Increase in Net Assets............................................... 10,839 28,355 NET ASSETS Beginning of Period........................................................ 132,572 104,217 --------- --------- End of Period (includes no undistributed net investment income)............ $143,411 $132,572 ========= =========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 39 43 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE SIX MONTHS ENDED FOR THE YEARS JUNE 30, ENDED DECEMBER 31, 1996 -------------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ----------- -------- -------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net Investment Income......... 0.03 0.06 0.05 0.03 0.03 0.06 Less Dividends from Net Investment Income............. (0.03) (0.06) (0.05) (0.03) (0.03) (0.06) -------- ----- --- ----- --- ----- --- ----- --- ----- --- Net Asset Value, End of Period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== ======== Total Return+...................... 2.56% ++ 5.82% 4.03% 2.88% 3.49% 5.85% ======== ======== ======== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)................... $143,411 $132,572 $104,217 $12,657 $14,091 $12,787 ======== ======== ======== ======== ======== ======== Ratio of Expenses to Average Net Assets........................... 0.30% * 0.30% 0.30% 0.30% 0.30% 0.30% ======== ======== ======== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets............... 5.04% * 5.61% 4.64% 2.87% 3.40% 5.71% ======== ======== ======== ======== ======== ========
* Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 40 44 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 ASSETS Common Stock (cost $760,960)................ $1,140,314 Bonds (cost $652,778)................ 653,157 Money Market Investments (cost $376,118)................ 376,683 Preferred Stock (cost $3)...................... 10 ---------- 2,170,164 Cash.............................. 636 Dividends and Interest Receivable..................... 13,903 Due on Futures Variation Margin... 217 Due from Sale of Fund Shares...... 100 ---------- Total Assets................. 2,185,020 ---------- LIABILITIES Due on Redemption of Fund Shares......................... 1,509 Due to Investment Advisor......... 499 ---------- Total Liabilities............ 2,008 ---------- NET ASSETS.......................... $2,183,012 ========== REPRESENTED BY: Aggregate Paid in Capital (2,000,000 shares authorized, $.01 par value; 1,372,038 shares outstanding)................... $1,743,137 Undistributed Net Investment Income......................... 42,100 Undistributed Accumulated Net Realized Gain on Investments... 17,037 Net Unrealized Appreciation of: Investment Securities.......... 380,305 Index Futures Contracts........ 433 ---------- Net Assets for 1,372,038 Shares Outstanding.................... $2,183,012 ========== Net Asset Value, Offering and Redemption Price per Share..... $1.59 =======
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $88).................... $ 12,215 Interest......................... 32,996 -------- Total Income................... 45,211 -------- Expenses Management Fees.................. 3,161 -------- Net Investment Income............... 42,050 -------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments: Investment Securities............ 10,965 Index Futures Contracts.......... 2,606 -------- Net Realized Gain on Investments for the Period.............. 13,571 -------- Net Change In Unrealized Appreciation of: Investment Securities.......... 48,181 Index Futures Contracts........ 1,691 -------- Net Change in Unrealized Appreciation of Investments for the Period................ 49,872 -------- Net Gain on Investments.......... 63,443 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $105,493 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 41 45 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ INCREASE IN NET ASSETS Operations Net Investment Income.................................................. $ 42,050 $ 83,546 Net Realized Gain on Investments....................................... 13,571 41,518 Net Change in Unrealized Appreciation of Investments for the Period.... 49,872 318,046 ----------- ----------- Net Increase in Net Assets Resulting from Operations................. 105,493 443,110 ----------- ----------- Dividends to Shareholders from: Net Investment Income.................................................. (83,501) (53,160) Net Realized Gain on Investments....................................... (35,154) (8,179) ----------- ----------- Net Decrease in Net Assets Resulting from Dividend to Shareholders... (118,655) (61,339) Fund Share Transactions Proceeds from Sale of 31,420 and 35,282 Shares......................... 50,821 51,862 Proceeds from Shares Issued on Reinvestment of Dividends Paid (77,149 and 44,352 shares, respectively)............................. 118,655 61,339 Payments for 35,049 and 96,890 Shares Redeemed......................... (56,591) (138,810) ----------- ----------- Net Increase (Decrease) in Net Assets Resulting from Fund Share Transactions (73,520 and (17,256) shares, respectively)............. 112,885 (25,609) ----------- ----------- Total Increase in Net Assets.............................................. 99,723 356,162 NET ASSETS Beginning of Period....................................................... 2,083,289 1,727,127 ----------- ----------- End of Period (includes undistributed net investment income of $42,100 and $83,551 respectively)...................................... $2,183,012 $2,083,289 =========== ===========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 42 46 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FOR THE SIX MONTHS ENDED FOR THE YEARS JUNE 30, ENDED DECEMBER 31, 1996 -------------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ----------- ---------- ---------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Period.............................. $ 1.60 $ 1.31 $ 1.33 $ 1.39 $ 1.40 $ 1.19 Income from Investment Operations: Net Investment Income............ 0.03 0.07 0.04 0.06 0.06 0.07 Net Realized and Unrealized Gain on Investments............ 0.05 0.27 (0.05) 0.09 0.01 0.21 --------- -------- -------- ------ ------ ------ Total from Investment Operations.................. 0.08 0.34 (0.01) 0.15 0.07 0.28 --------- -------- -------- ------ ------ ------ Less Distributions: Dividends from Net Investment Income......................... (0.06) (0.04) (0.00) (0.07) (0.06) (0.07) Distributions from Realized Gains on Investments................. (0.03) (0.01) (0.01) (0.14) (0.02) -- --------- -------- -------- ------ ------ ------ Total Distributions............ (0.09) (0.05) (0.01) (0.21) (0.08) (0.07) --------- -------- -------- ------ ------ ------ Net Asset Value, End of Period........ $ 1.59 $ 1.60 $ 1.31 $ 1.33 $ 1.39 $ 1.40 ========= ======== ======== ====== ====== ====== Total Return+......................... 5.07%++ 26.39% 0.16% 9.91% 5.61% 23.33% ========= ======== ======== ====== ====== ====== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (in thousands)...................... $2,183,012 $2,083,289 $1,727,127 $68,910 $66,006 $57,269 ========== ========== ========== ======= ======= ======= Ratio of Expenses to Average Net Assets.............................. 0.30% * 0.30% 0.30% 0.30% 0.30% 0.30% ========= ======== ======== ====== ====== ====== Ratio of Net Investment Income to Average Net Assets.................. 3.93% * 4.40% 4.78% 4.24% 4.45% 5.11% ========= ======== ======== ====== ====== ====== Portfolio Turnover Rate............... 23.38% 37.28% 42.35% 70.91% 43.28% 55.46% ========= ======== ======== ====== ====== ======
* Computed on an annualized basis. + Total Return includes deductions for management and other fund expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 43 47 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 Note 1 -- Northwestern Mutual Series Fund, Inc. (the "Series Fund"), is registered as a diversified open-end investment company under the Investment Company Act of 1940. The Series Fund consists of the Index 500 Stock Portfolio, Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio, International Equity Portfolio, Select Bond Portfolio, High Yield Bond Portfolio, Money Market Portfolio, and the Balanced Portfolio (the "Portfolios"). Shares are presently offered only to The Northwestern Mutual Life Insurance Company ("Northwestern Mutual Life") and its segregated asset accounts. On May 3, 1994, five new portfolios commenced operations in the Series Fund: Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio, International Equity Portfolio and High Yield Bond Portfolio. These five portfolios were organized with 700,000,000 authorized shares of Common Stock for each of the Aggressive Growth Stock and International Equity Portfolios and 400,000,000 authorized shares of Common Stock for each of the Growth Stock, Growth and Income Stock and High Yield Bond Portfolios. Par Value is $.01 per share. Northwestern Mutual Life purchased 25,000,000 shares each of the Growth Stock, Growth and Income Stock and High Yield Bond Portfolios at $1.00 per share. Note 2 -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principal accounting policies are summarized below. Note 3 -- Bonds are valued on the basis of prices furnished by a service which determines prices for normal institutional size trading units of bonds, without regard to exchange or over-the-counter prices. When quotations are not readily available, bonds are valued at fair market value determined by procedures approved by the Board of Directors. Stocks listed on a national or foreign stock exchange are valued at the final sale price, or final bid price in absence of a sale. Stocks not listed on a national or foreign stock exchange are valued at the closing bid price on the over-the-counter market. Money market investments, other than in the Money Market Portfolio, with maturities exceeding sixty days but generally not exceeding one year are valued by marking to market on the basis of an average of the most recent bid prices or yields. Money market investments with maturities of sixty days or less and all securities in the Money Market Portfolio are valued on an amortized cost basis or, if the current market value differs substantially from the amortized cost, by marking to market. Note 4 -- Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated in U.S. dollar amounts on the respective dates of such transactions. When the International Equity Portfolio purchases or sells a foreign security it may enter into a foreign exchange currency contract to minimize market risk from the trade date to the settlement date of such transaction. Such foreign exchange currency contracts are marked to market daily. The International Equity Portfolio does not separately report the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade date and settlement date on security transactions, the differences between the amounts of dividends and foreign withholding taxes recorded on the portfolio's books, and the U.S. dollar equivalent of the amounts actually received or paid. Note 5 -- The Index 500 Stock and Balanced Portfolios invest in futures contracts as an alternative to investing in individual securities. The Index 500 Stock and Balanced Portfolios could be exposed to market risk due to changes in the value of the underlying securities or due to an illiquid secondary market. Futures contracts are marked to market daily based upon quoted settlement prices. The Portfolios receive from or pay to brokers an amount of cash equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as "variation margin" and are recorded by the Portfolios as unrealized gains or losses. When the contract is closed, the Portfolios record 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. Note 6 -- Interest income and discounts earned are recorded daily on the accrual basis and dividend income is recorded on the ex-dividend date or as soon as information from foreign issuers is available. Where applicable, dividends are recorded net of foreign dividend tax. Discounts and premiums on securities purchased are amortized over the life of the respective securities when required for federal income tax purposes. Securities transactions are 44 48 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 accounted for on the day following the trade date except for money market investments which are accounted for on the trade date. The basis for determining cost on sale of securities is identified cost. For the six months ended June 30, 1996, transactions in securities other than money market investments were:
TOTAL U.S. GOVT TOTAL U.S. GOVT SECURITY SECURITY SECURITY SECURITY PORTFOLIOS PURCHASES PURCHASES SALES/MATURITIES SALES/MATURITIES - ------------------------------------------ ------------ ------------ ---------------- ---------------- Index 500 Stock........................... $ 67,049,092 $ -- $ 9,705,995 $ -- Growth Stock.............................. 48,015,236 -- 19,830,875 -- Growth and Income Stock................... 105,448,601 -- 67,450,080 -- Aggressive Growth Stock................... 262,628,604 -- 173,178,541 -- International Equity...................... 50,991,321 2,750,538 18,360,516 2,850,000 Select Bond............................... 157,198,467 139,123,709 149,442,682 124,759,393 High Yield Bond........................... 58,204,982 -- 45,397,949 -- Balanced.................................. 439,009,354 349,485,878 416,467,364 272,176,862
Note 7 -- The Series Fund and its Portfolios are parties to annually renewable contracts pursuant to which each Portfolio pays a charge for investment management and administrative services. Each Portfolio pays a monthly fee for these investment advisory services at an annual rate based on the average daily net asset values of each Portfolio. For the Index 500 Stock Portfolio the rate is .20%, and for the Select Bond, Money Market and Balanced Portfolios the rate is .30%. For the other Portfolios the rate for the investment advisory fee is graded by the asset size of the Portfolio according to the following schedule:
PORTFOLIO FIRST $50 MILLION NEXT $50 MILLION EXCESS - ---------------------------------------------------------------- ----------------- ---------------- ------ Growth Stock.................................................... .60% .50% .40% Growth and Income Stock......................................... .70% .60% .55% Aggressive Growth Stock......................................... .80% .65% .50% International Equity............................................ .85% .65% .65% High Yield Bond................................................. .60% .50% .40%
These amounts are paid to Northwestern Mutual Investment Services, Inc. ("NMIS") a wholly-owned subsidiary of Northwestern Mutual Life, which is the manager and investment adviser of the Fund. Northwestern Mutual Life is also a party to the agreement. Other costs for each Portfolio are paid either by the Portfolios, Northwestern Mutual Life, or NMIS depending upon the applicable agreement in place. Certain portfolios pay a portion of their custodian fees indirectly through expense offset arrangements. Custodian fees are reduced for Portfolios that maintain compensating balances in non-interest bearing accounts. The portfolios could have invested the assets used to pay for the custodian fees, had the assets not been used in the expense offset arrangements. As of June 30, 1996, the amounts paid through expense offset arrangements are $3,798 in the Index 500 Portfolio, $2,076 in the Growth Stock Portfolio, $2,710 in the Growth and Income Stock Portfolio, $10,192 in the Aggressive Growth Stock Portfolio and $3,557 in the High Yield Bond Portfolio. J.P. Morgan Investment Management, Inc. ("J.P. Morgan") and Templeton Investment Counsel, Inc. ("Templeton Counsel") have been retained under an investment sub-advisory agreement to provide investment advice and, in general, to conduct the management investment program of the Growth and Income Stock Portfolio and the International Equity Portfolio, respectively. Of the advisory fees received by NMIS from the Growth and Income Stock Portfolio, .45% on the first $100 million of the Portfolio's net assets, .40% on the next $100 million, .35% on the next $200 million and .30% on the net assets in excess of $400 million will be paid by NMIS to J.P. Morgan. Of the advisory fees received by NMIS from the International Equity Portfolio, .50% on the first $100 million of the Portfolio's net assets and .40% on net assets in excess of $100 million will be paid by NMIS to Templeton Counsel. Note 8 -- The Series Fund has elected to be taxed as a regulated investment company meeting certain requirements under the Internal Revenue Code. Since it expects to distribute all net investment income and net realized capital gains, the Series Fund anticipates incurring no federal income taxes. A net realized capital loss of $1,337,853 in the Select Bond Portfolio carried forward from 1994 and is available to offset future net realized capital gains. The amount expires in 2002. A capital loss carryforward of $366,657 was utilized in the Select Bond Portfolio during the year ended December 31, 1995. As of June 30, 1996, the federal income tax basis of investments is the same as the cost basis in the financial statements except for the International Equity Portfolio. The federal income tax basis of investments was $369,968,435 for the International Equity Portfolio. The net unrealized appreciation 45 49 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 (depreciation) and the gross unrealized appreciation (depreciation) for federal income tax purposes are shown below:
(IN THOUSANDS) GROWTH AND GROWTH INCOME AGGRESSIVE INDEX 500 STOCK STOCK GROWTH STOCK STOCK PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------------- --------- ---------- ------------ Gross unrealized appreciation......................... $ 168,345 $ 20,524 $ 17,241 $260,278 Gross unrealized depreciation......................... (6,794) (767) (4,277) (10,991) --------- -------- -------- -------- Net unrealized appreciation........................... $ 161,551 $ 19,757 $ 12,964 $249,287 ========= ======== ======== ========
INTERNATIONAL HIGH YIELD EQUITY SELECT BOND BOND BALANCED PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- ----------- ---------- -------- Gross unrealized appreciation............................ $ 64,077 $ 2,036 $ 2,173 $409,188 Gross unrealized depreciation............................ (16,213) (2,108) (2,171) (28,883) --------- ------- -------- -------- Net unrealized appreciation (depreciation)............... $ 47,864 $ (72) $ 2 $380,305 ========= ======= ======== ========
Taxable distributions from net investment income and realized capital gains in the International Equity Portfolio differ from book amounts earned during the period due to differences in the timing of capital recognition and due to the reclassification of certain gains or losses from capital to income. For Federal income tax purposes, net unrealized appreciation of $895,075 and $433,250 on open futures contracts for the Index 500 Stock and Balanced Portfolios, respectively, is required to be treated as realized gains and losses. Note 9 -- The costs associated with organizing the five new Portfolios and certain other initial period costs have been incurred by Northwestern Mutual Life. The Series Fund is not obligated to repay these costs. Note 10 -- Dividends from net investment income and net realized capital gains are declared each year for the Index 500 Stock, Growth Stock, Growth and Income Stock, Aggressive Growth Stock, International Equity, Select Bond, High Yield Bond and Balanced Portfolios and each business day for the Money Market Portfolio. Dividend distributions are described below. A dividend was declared on May 6, 1996, payable to shareholders of record on May 6, 1996. Dividends paid from 1995 net investment income and 1995 net capital gains were as follows:
NET INVESTMENT NET PORTFOLIOS INCOME CAPITAL GAINS - -------------------------------------------------------------------------- ----------- ------------- Index 500 Stock........................................................... $ 6,191,044 $ 9,631,529 Growth Stock.............................................................. 10,843 621,491 Growth and Income Stock................................................... 17,236 3,387,875 Aggressive Growth Stock................................................... 571,524 24,985,733 International Equity...................................................... 8,311,009 11,652,962 Select Bond............................................................... 7,024,686 -- High Yield Bond........................................................... 73,082 322,834 Balanced.................................................................. 83,501,280 35,153,584
Note 11 -- NML voluntarily reimburses the International Equity Portfolio for the benefit NML receives from foreign dividend taxes charged against the Portfolio. The amount reimbursed represents approximately 65% of the foreign dividend tax withheld from the Portfolio. Reimbursements are recorded when foreign dividend taxes are accrued. This voluntary reimbursement began April 1, 1996 and totals $437,790 as of June 30, 1996. 46 50 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (92.7%) AEROSPACE (2.0%) Boeing Company 38,600 $ 3,363 General Dynamics Corporation 7,100 440 Harris Corporation 4,300 262 Lockheed Martin Corporation 22,154 1,861 McDonnell Douglas Corporation 24,800 1,203 Northrop Grumman Corporation 6,300 429 Raytheon Company 26,700 1,378 Rockwell International Corporation 24,300 1,391 United Technologies Corp. 13,600 1,564 -------- Total 11,891 -------- AIRLINES (0.3%) *AMR Corporation 10,000 910 Delta Air Lines Inc. 6,900 573 Southwest Airlines Co. 16,100 469 *USAir Group, Inc. 7,100 128 -------- Total 2,080 -------- APPAREL TEXTILE (0.5%) Brown Group, Inc. 1,900 33 *Fruit of the Loom Incorporated 8,500 217 Liz Claiborne, Inc. 8,200 284 Nike, Inc. 16,000 1,644 Reebok International Ltd. 8,200 276 Russell Corp. 4,300 119 Springs Industries, Inc. 2,200 111 Stride Rite Corp. 5,200 43 VF Corporation 7,100 423 -------- Total 3,150 -------- AUTO & TRUCKS (1.9%) Chrysler Corporation 41,700 2,585 Ford Motor Company 131,200 4,248 General Motors Corporation 84,400 4,420 *Navistar International Corp. 8,400 83 PACCAR Incorporated 4,335 212 -------- Total 11,548 -------- AUTO RELATED (0.6%) Cooper Tire & Rubber Company 9,300 207 Dana Corporation 11,300 350 Eaton Corporation 8,700 510 Echlin Inc. 6,900 261 Genuine Parts Company 13,600 622 Goodyear Tire & Rubber Company 17,300 835 Snap-On Incorporated 4,500 213 TRW Inc. 7,300 656 -------- Total 3,654 -------- BANKS (6.5%) Banc One Corporation 50,445 1,715 Bank of Boston Corporation 12,500 619 Bank of New York Company Inc. 21,700 1,112 BankAmerica Corporation 40,800 3,091 Bankers Trust New York Corporation 8,900 657 Barnett Banks Inc. 10,500 640 Boatmans Bancshares, Inc. 17,600 706 Chase Manhattan Corporation 48,656 3,436 Citicorp 54,300 4,486 Comerica, Inc. 13,000 580 Corestates Financial Corp. 24,700 951 MARKET VALUE SHARES (000'S) ---------- -------- BANKS (CONTINUED) Fifth Third Bancorp. 11,400 $ 616 First Bank System Inc. 15,700 911 First Chicago Corporation 35,328 1,382 First Union Corporation 31,835 1,938 Fleet Financial Group Inc. 29,330 1,276 KeyCorp 25,900 1,004 Mellon Bank Corporation 15,350 875 J.P. Morgan & Company, Inc. 21,000 1,777 National City Corp. 24,700 868 NationsBank Corp. 33,400 2,760 Norwest Corporation 40,800 1,423 PNC Financial Corp. 38,000 1,131 Republic New York Corporation 6,200 386 Suntrust Banks Inc. 25,300 936 U.S. Bancorp of Oregon 18,000 650 Wachovia Corporation 18,900 827 Wells Fargo & Company 10,933 2,612 -------- Total 39,365 -------- BEVERAGES (3.9%) Anheuser-Busch Companies, Inc. 28,300 2,122 Brown-Forman Corp. 7,700 308 The Coca-Cola Company 278,600 13,617 Adolph Coors Co. 4,200 75 Pepsico Inc. 174,900 6,187 Seagram Company Ltd. 41,700 1,402 -------- Total 23,711 -------- BUILDING & CONSTRUCTION (0.2%) Centex Corporation 3,200 100 Kaufman & Broad Home Corp. 4,300 62 Masco Corporation 17,900 541 Owens-Corning Fiberglas Corp. 5,800 249 Pulte Corporation 3,000 80 Sherwin-Williams Company 9,600 446 -------- Total 1,478 -------- BUILDING-FOREST PRODUCTS (0.4%) Boise Cascade Corporation 5,400 198 Champion International 10,700 447 Georgia-Pacific Corporation 10,200 724 Louisiana-Pacific Corporation 12,100 268 Potlatch Corporation 3,200 125 Weyerhaeuser Company 22,100 939 -------- Total 2,701 -------- CHEMICALS (2.4%) Air Products & Chemicals, Inc. 12,500 722 Dow Chemical Company 27,900 2,120 E.I. Du Pont De Nemours & Co. 62,600 4,953 Eastman Chemical Company, Inc. 8,825 537 *FMC Corporation 4,200 274 B.F. Goodrich Company 5,900 221 Hercules Incorporated 12,100 669 Monsanto Company 65,800 2,138 PPG Industries Inc. 21,100 1,029 Praxair, Inc. 17,300 731 Rohm & Haas Company 7,400 464 Union Carbide Corporation 14,900 592 -------- Total 14,450 --------
47 51 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) CHEMICALS-SPECIALTY (0.5%) Avery Dennison Corp. 5,900 $ 324 Engelhard Corp. 16,002 368 W.R. Grace & Co. 10,900 773 Great Lakes Chemical 7,200 448 Morton International, Inc. 16,400 611 Nalco Chemical Company 7,500 236 Sigma-Aldrich Corp. 5,600 300 -------- Total 3,060 -------- COAL, GAS AND PIPELINE (0.3%) Burlington Resource Inc. 14,100 606 Eastern Enterprises 2,300 76 ENSERCH Corp. 7,700 167 NACCO Industries, Inc. 1,000 55 Panenergy Corp. 16,800 552 Sonat Inc. 9,600 432 -------- Total 1,888 -------- COMPUTER RELATED (3.5%) Alco Standard Corporation 14,300 647 *Amdahl Corporation 13,300 143 *Apple Computer, Inc. 13,800 290 *Ceridian Corp. 7,600 384 *Compaq Computer Corporation 29,900 1,473 *Cray Research, Inc. 2,700 65 *Data General Corporation 4,300 56 *Digital Equipment Corporation 17,100 769 *EMC Corporation 25,800 481 *General Instrument Corp. 14,100 407 Hewlett-Packard Company 56,900 5,669 *Intergraph Corp. 5,200 63 International Business Machines Corp. 60,700 6,009 Moore Corporation Ltd. 11,100 210 Pitney Bowes Inc. 16,700 797 *Silicon Graphics 18,200 437 *Sun Microsystems Inc. 20,500 1,207 *Tandem Computers Inc. 13,100 162 *Unisys Corporation 19,100 136 Xerox Corporation 36,100 1,931 -------- Total 21,336 -------- CONTAINERS (0.2%) Ball Corporation 3,400 98 Bemis Company, Inc. 5,900 206 Crown Cork & Seal Company, Inc. 14,300 643 *Tupperware Corporation 6,900 292 -------- Total 1,239 -------- DIVERSIFIED (1.6%) Allied Signal Inc. 31,600 1,805 Corning Inc. 25,800 990 Dial Corp. 10,500 301 EG & G, Inc. 5,300 113 ITT Industries Inc. 13,100 329 Loews Corp. 13,200 1,041 Minnesota Mining & Manufacturing Co. 46,700 3,222 Teledyne, Inc. 6,200 224 Tenneco Inc. 19,400 992 Textron Inc. 9,400 751 Whitman Education Group Inc. 11,800 285 -------- Total 10,053 -------- MARKET VALUE SHARES (000'S) ---------- -------- DRUGS (5.8%) American Home Products Corporation 70,600 $ 4,245 *Amgen Inc. 29,700 1,604 Bristol-Myers Squibb Company 56,100 5,049 Eli Lilly & Company 61,500 3,997 Merck & Co., Inc. 137,000 8,854 Pharmacia & Upjohn Inc. 56,905 2,525 Pfizer Inc. 71,100 5,075 Schering-Plough Corporation 41,100 2,579 Warner-Lambert Company 30,300 1,666 -------- Total 35,594 -------- ELECTRICAL EQUIPMENT (3.5%) Emerson Electric Co. 25,000 2,259 General Electric Company 185,600 16,054 W.W. Grainger, Inc. 5,700 442 Honeywell Inc. 14,200 774 Raychem Corp. 5,000 359 Thomas & Betts Corporation 4,500 169 Westinghouse Electric Corporation 46,600 874 Whirlpool Corporation 8,300 412 -------- Total 21,343 -------- ELECTRONICS (1.9%) *Advanced Micro Devices, Inc. 15,100 206 AMP Incorporated 24,272 974 *Applied Materials Inc. 20,000 610 Intel Corp. 91,700 6,734 *LSI Logic Corp. 14,300 372 Micron Technology 23,200 600 *National Semiconductor Corporation 15,100 234 Perkin-Elmer Corporation 4,800 232 Tektronix, Inc. 3,600 161 Texas Instruments Incorporated 21,100 1,052 Tyco International Ltd. 17,000 693 -------- Total 11,868 -------- ENVIRONMENTAL CONTROL (0.5%) Browning-Ferris Industries Inc. 23,700 687 Laidlaw Transportation Limited 32,800 332 WMX Technologies, Inc. 55,200 1,808 -------- Total 2,827 -------- FEDERAL GOVERNMENT AGENCY RELATED (1.0%) Federal Home Loan Mortgage Corp. 20,000 1,710 Federal National Mortgage Assoc. 121,900 4,084 -------- Total 5,794 -------- FINANCIAL SERVICES (2.2%) H.F. Ahmanson & Company 12,900 348 Alexander & Alexander Services Inc. 5,000 99 American Express Company 53,900 2,405 Beneficial Corporation 6,000 337 Dean Witter, Discover & Co. 18,600 1,065 Golden West Financial Corporation 6,600 370 Great Western Financial Corporation 15,300 365 Green Tree Financial Corp. 15,300 478 Household International Inc. 10,800 821
48 52 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) FINANCIAL SERVICES (CONTINUED) MBNA Corp. 24,900 $ 710 Marsh & Mclennan Companies, Inc. 8,100 782 Merrill Lynch & Co., Inc. 19,100 1,244 Morgan Stanley Group Inc. 17,100 840 Salomon Inc. 11,700 515 Transamerica Corporation 7,600 616 Travelers Group Inc. 52,952 2,416 -------- Total 13,411 -------- FOOD SERVICE/LODGING (1.1%) Darden Restaurant Inc. 17,800 191 *Harrahs Entertainment 11,500 325 Hilton Hotels Corporation 5,400 607 *ITT Corp. 13,100 868 Luby's Cafeterias, Inc. 2,600 61 Marriott International 14,300 769 Mc Donald's Corporation 78,200 3,656 *Ryan's Family Steak Houses, Inc. 5,600 52 *Shoney's Inc. 4,400 48 Wendy's International, Inc. 14,200 264 -------- Total 6,841 -------- FOODS (2.8%) Archer Daniels Midland Company 58,077 1,111 CPC International Corp. 16,200 1,166 Campbell Soup Company 27,800 1,960 ConAgra Inc. 27,100 1,230 General Mills, Inc. 17,800 970 H.J. Heinz Company 41,250 1,253 Hershey Foods Corp. 8,600 631 Kellogg Company 23,700 1,736 Pioneer Hi-Bred International 9,300 492 Quaker Oats Company 15,100 515 Ralston Purina Group 11,800 757 Sara Lee Corporation 54,000 1,748 Unilever, N.V. 17,900 2,598 Wm. Wrigley Jr. Company 13,000 657 -------- Total 16,824 -------- HOSPITAL SUPPLIES (2.9%) Abbott Laboratories Inc. 87,700 3,815 Allergan Incorporated 7,200 283 Allergan Incorporated-Rights 183 0 C.R. Bard, Inc. 6,400 218 Bausch & Lomb Inc. 6,300 268 Baxter International Inc. 30,300 1,432 Becton, Dickinson & Company 7,100 570 *Biomet, Inc. 12,900 185 *Boston Scientific Corp. 19,900 895 Johnson & Johnson 148,700 7,361 MARKET VALUE SHARES (000'S) ---------- -------- HOSPITAL SUPPLIES (CONTINUED) Mallinckrodt Group 8,300 $ 323 Medtronic, Incorporated 26,100 1,462 Millipore Corp. 4,900 205 *St. Jude Medical, Inc. 8,900 298 U.S. Surgical Corporation 6,900 214 -------- Total 17,529 -------- HOUSEHOLD FURNITURE (0.4%) Armstrong World Industries, Inc. 4,100 236 Black & Decker Corporation 9,800 379 Maytag Corporation 11,700 244 Newell Co. 17,700 542 Rubbermaid, Inc. 16,900 461 The Stanley Works 9,900 295 -------- Total 2,157 -------- INSURANCE (2.9%) Aetna Life & Casualty Company 12,900 922 Allstate Corporation 49,714 2,268 American General Corporation 23,200 844 American International Group, Inc. 52,850 5,212 Aon Corporation 12,100 614 CIGNA Corporation 8,500 1,002 The Chubb Corporation 19,600 978 General Re Corporation 9,100 1,385 ITT Hartford Group Inc. 13,100 698 Jefferson-Pilot Corp. 7,900 408 Lincoln National Corporation 11,600 536 Providian Corporation 10,500 450 SAFECO Corp. 14,100 499 St. Paul Companies, Inc. 9,400 503 Torchmark Corporation 8,000 350 UNUM Corporation 8,200 510 USF & G Corp. 13,300 218 USLIFE Corporation 3,850 127 -------- Total 17,524 -------- LEISURE RELATED (1.8%) *Bally Entertainment Corporation 5,600 154 Brunswick Corporation 11,000 220 Comcast Corp. 26,750 495 Walt Disney Company 75,669 4,758 Fleetwood Enterprises, Inc. 5,100 158 Hasbro Inc. 9,700 347 *King World Productions, Inc. 4,200 153 Mattel, Inc. 30,888 884 Outboard Marine Corporation 2,100 38 *Tele Communications, Inc. 72,900 1,321 *U S West Media Group 52,700 962 *Viacom Incorporated 41,256 1,568 -------- Total 11,058 --------
49 53 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) MACHINERY (1.4%) Briggs & Stratton Corporation 3,200 $ 132 Case Corporation 8,100 389 Caterpillar Inc. 21,600 1,463 Cincinnati Milacron Inc. 4,400 106 Cooper Industries, Inc. 12,100 502 Crane Co. 3,400 139 Cummins Engine Company, Inc. 4,500 182 Deere & Company 29,300 1,172 Dover Corporation 12,700 586 Fluor Corporation 9,300 608 Foster Wheeler Corporation 4,500 202 General Signal Corporation 5,500 208 Giddings & Lewis Company 3,900 63 Harnischfeger Industries, Inc. 5,200 173 Illinois Tool Works Inc. 13,300 899 Ingersoll-Rand Company 12,200 534 Johnson Controls, Inc. 4,600 320 Pall Corporation 12,800 309 Parker-Hannifin Corporation 8,250 350 Timken Company 3,500 136 TRINOVA Corp. 3,200 107 *Varity Corporation 4,400 212 -------- Total 8,792 -------- MEDICAL SERVICES (1.0%) *Beverly Enterprises, Inc. 11,200 134 Columbia/HCA Healthcare Corporation 50,000 2,669 *Community Psychiatric Centers 5,000 47 Humana, Inc. 18,100 324 Manor Care, Inc. 7,000 276 *Tenet Healthcare Corp. 24,000 513 United Healthcare Corp. 20,300 1,025 U.S. HealthCare Incorporated 17,200 946 -------- Total 5,934 -------- METALS & MINING (1.2%) Alcan Aluminum Limited 25,200 769 Aluminum Co. of America 19,600 1,124 ASARCO, Inc. 4,800 133 Barrick Gold Corporation 39,900 1,082 Cyprus Amax Minerals Co. 10,350 234 Echo Bay Mines Limited Co. 14,600 157 Freeport-McMoRan Copper & Gold Inc. 21,800 695 Homestake Mining Company 16,400 281 Inco Limited 13,100 422 Newmont Mining Corporation 11,088 547 Phelps Dodge Corporation 7,400 462 Placer Dome Incorporated 26,700 637 Reynolds Metals Company 7,100 370 Santa Fe Pacific Gold Corp. 14,660 207 -------- Total 7,120 -------- OFFICE EQUIPMENT-SERVICES (2.8%) Autodesk, Inc. 5,100 152 Automatic Data Processing, Inc. 32,300 1,248 Computer Associates International Inc. 27,050 1,927 *Computer Sciences Corp. 6,300 471 First Data Corporation 24,900 1,983 MARKET VALUE SHARES (000'S) ---------- -------- OFFICE EQUIPMENT-SERVICES (CONTINUED) *Microsoft Corporation 66,300 $ 7,964 *Novell, Inc. 40,800 566 *Oracle Corporation 73,000 2,879 Shared Medical Systems Corp. 2,600 167 -------- Total 17,357 -------- OIL & GAS-DOMESTIC (1.3%) Amerada Hess Corporation 10,400 558 Ashland Oil, Inc. 7,100 281 Atlantic Richfield Company 18,000 2,133 Coastal Corp. 11,800 493 Kerr-McGee Corporation 5,600 341 Louisiana Land & Exploration Co. 3,800 219 Occidental Petroleum Corporation 35,600 881 *Oryx Energy Company 11,700 190 Pennzoil Company 5,200 240 Phillips Petroleum Company 29,300 1,227 *Santa Fe Energy Resources, Inc. 10,100 120 Sun Company, Inc. 8,200 249 USX-U S Steel Group Inc. 9,300 264 Unocal Corp. 27,600 932 -------- Total 8,128 -------- OIL & GAS-INTERNATIONAL (6.1%) Amoco Company 55,400 4,010 Chevron Corp. 72,800 4,295 Exxon Corporation 138,600 12,041 Mobil Corporation 44,000 4,933 Royal Dutch Petroleum Co., ADR 59,800 9,194 Texaco Inc. 29,500 2,474 -------- Total 36,947 -------- OIL FIELD SERVICES (0.8%) Baker Hughes, Inc. 15,900 523 Dresser Industries, Inc. 20,300 599 Halliburton Company 12,800 710 Helmerich & Payne, Inc. 2,800 103 McDermott International, Inc. 6,100 127 *Rowan Companies, Inc. 9,500 140 Schlumberger Limited 27,100 2,283 *Western Atlas International Inc. 5,900 344 -------- Total 4,829 -------- PAPER (0.9%) International Paper Company 33,300 1,228 James River Corp. of Virginia 9,500 251 Kimberly-Clark Corporation 31,422 2,427 Mead Corp. 5,900 306 Stone Container Corporation 11,100 153 Temple-Inland Inc. 6,200 290 Union Camp Corporation 7,700 375 Westvaco Corporation 11,350 339 Willamette Industries Inc. 6,200 369 -------- Total 5,738 -------- PHOTO & OPTICAL (0.5%) Eastman Kodak Company 38,600 3,001 Polaroid Corporation 5,100 233 -------- Total 3,234 --------
50 54 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) PRINTING & PUBLISHING (1.4%) American Greetings Corp. 8,300 $ 227 Deluxe Corp. 9,200 327 R.R. Donnelley & Sons Company 17,200 600 Dow Jones & Company, Inc. 10,900 455 Dun & Bradstreet Corporation 19,000 1,187 Gannett Company, Inc. 15,700 1,111 Harcourt General 7,900 395 The John H. Harland Company 3,400 84 Jostens, Inc. 4,300 85 Knight-Ridder Inc. 5,500 399 Mcgraw-Hill Companies, Inc. 11,200 512 Meredith Corporation 3,100 129 New York Times Company 10,900 356 Time Warner Inc. 43,800 1,719 Times Mirror Company 11,700 509 Tribune Company 6,900 501 -------- Total 8,596 -------- PROFESSIONAL SERVICES (0.5%) *Alza Corp. 9,400 257 H & R Block, Inc. 11,500 375 *CUC International Inc. 21,250 754 Ecolab, Inc. 7,200 238 Interpublic Group of Cos., Inc. 8,800 412 National Service Industries, Inc. 5,400 211 Ogden Corporation 5,500 100 Safety-Kleen Corp. 6,500 114 Service Corporation International 13,100 753 -------- Total 3,214 -------- RAILROADS (1.0%) Burlington Northern Santa Fe 17,007 1,375 CSX Corporation 23,600 1,139 Conrail Incorporated 8,700 577 Norfolk Southern Corporation 14,200 1,203 Union Pacific Corporation 22,900 1,600 -------- Total 5,894 -------- RETAIL-FOOD (0.7%) Albertson's, Inc. 28,100 1,163 American Stores Co. 16,700 689 Fleming Companies, Inc. 4,000 58 Giant Food Inc. 6,700 240 Great Atlantic & Pacific Tea Co., Inc. 4,300 141 *The Kroger Company 13,900 549 Supervalue Inc. 7,500 236 Sysco Corporation 20,300 695 Winn-Dixie Stores, Inc. 17,000 601 -------- Total 4,372 -------- RETAIL-GENERAL (4.0%) *Charming Shoppes Incorporated 11,500 81 Circuit City Stores, Inc. 10,900 394 Dayton Hudson Corporation 8,000 825 Dillard Department Stores, Inc. 12,600 460 *Federated Department Stores, Inc. 23,200 792 The Gap, Inc. 32,200 1,034 Home Depot, Inc. 53,299 2,878 K Mart Corporation 53,600 663 The Limited Inc. 30,200 649 Longs Drug Stores Corp. 2,200 $ 98 MARKET VALUE SHARES (000'S) ---------- -------- RETAIL-GENERAL (CONTINUED) Lowe's Companies, Inc. 18,000 650 May Department Stores Company 27,900 1,221 Melville Corporation 11,700 474 Mercantile Stores Company 4,100 240 Nordstrom, Inc. 9,100 405 J.C. Penney Company, Inc. 25,100 1,318 Pep Boys - Manny, Moe & Jack 6,900 235 *Price/Costco Inc. 21,807 472 Rite Aid Corporation 9,300 277 Sears, Roebuck & Company 43,800 2,130 The TJX Companies, Inc. 8,100 273 Tandy Corporation 6,700 317 *Toys "R" Us 30,500 869 Wal-Mart Stores, Inc. 256,000 6,496 Walgreen Company 27,500 921 *Woolworth Corp. 14,900 335 -------- Total 24,507 -------- SOAPS & TOILETRIES (2.2%) Alberto-Culver Company 3,100 144 Avon Products, Inc. 15,000 677 Clorox Company 5,800 514 Colgate-Palmolive Co. 16,300 1,381 Gillette Company 49,700 3,100 International Flavors & Fragrances, Inc. 12,400 591 Procter & Gamble Company 76,600 6,942 -------- Total 13,349 -------- STEEL (0.3%) *Armco Inc. 11,800 59 *Bethlehem Steel Corporation 12,400 147 Inland Steel Industries, Inc. 5,400 106 Nucor Corp. 9,800 496 USX-Marathon Group 32,100 646 Worthington Industries, Inc. 10,150 212 -------- Total 1,666 -------- TELECOMMUNICATIONS (5.0%) AT&T Corporation 179,400 11,123 *Airtouch Communications 55,700 1,573 *Andrew Corporation 6,727 362 *Bay Networks 21,000 541 *Cabletron Systems Inc. 8,100 556 *Cisco Systems Incorporated 63,500 3,596 *DSC Communications Corp. 12,900 389 MCI Communications Corporation 77,100 1,976 Motorola, Inc. 66,100 4,156 Northern Telecom Limited 28,700 1,561 Scientific-Atlanta, Inc. 8,500 132 Sprint Corporation 48,700 2,045 *Tellabs Inc. 9,900 662 *3COM Corp. 18,600 851 *World Communications Inc. 21,700 1,202 -------- Total 30,725 -------- TOBACCO (1.9%) American Brands, Inc. 19,800 898 Philip Morris Companies, Inc. 92,600 9,630 UST Incorporated 22,600 774 -------- Total 11,302 --------
51 55 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) TRUCKING-SHIPPING (0.2%) Caliber System Inc. 4,400 $ 150 Consolidated Freightways, Inc. 4,900 104 *Federal Express Corp. 6,300 517 Ryder System, Inc. 8,900 250 *Yellow Corp. 2,900 38 -------- Total 1,059 -------- UTILITY-ELECTRIC (3.1%) American Electric Power Co., Inc. 20,800 887 Baltimore Gas & Electric Company 16,500 468 Carolina Power & Light Company 17,000 646 Central & South West Corporation 23,400 679 Cinergy Corporation 17,617 564 Consolidated Edison Co. of New York 26,200 766 DTE Energy Company 16,200 500 Dominion Resources Inc. 19,800 792 Duke Power Company 22,900 1,174 Edison International 49,700 876 Entergy Corporation 25,400 721 FPL Group, Inc. 20,500 943 General Public Utilities 13,400 472 Houston Industries Incorporated 29,300 722 *Niagara Mohawk Power Corporation 16,100 125 Northern States Power Company 7,600 375 Ohio Edison Company 17,000 372 PECO Energy Company 24,800 645 P P & L Resources Inc. 17,800 421 Pacific Enterprises 9,200 273 Pacific Gas & Electric Company 46,500 1,081 PacifiCorp 32,800 730 Public Service Enterprise Group, Inc. 27,300 747 Southern Company 74,900 1,844 Texas Utilities Company 25,200 1,077 UNICOM Corp. 24,000 669 Union Electric Company 11,400 459 -------- Total 19,028 -------- UTILITY-GAS (0.5%) Columbia Gas System Inc. 6,100 318 Consolidated Natural Gas Company 10,400 543 Enron Corp. 28,000 1,144 Nicor Inc. 5,600 159 Noram Energy Corporation 15,000 163 ONEOK, Inc. 3,000 75 Peoples Energy Corporation 3,900 131 MARKET SHARES/ VALUE PAR (000'S) ---------- -------- UTILITY-GAS (CONTINUED) Williams Companies Inc. 11,700 $ 579 -------- Total 3,112 -------- UTILITY-TELEPHONE (4.3%) ALLTEL Corporation 21,100 649 Ameritech Corporation 62,000 3,681 Bell Atlantic Corporation 48,900 3,117 Bellsouth Corporation 111,000 4,704 GTE Corporation 108,900 4,873 NYNEX Corp. 48,800 2,318 Pacific Telesis Group 47,800 1,613 SBC Communications Incorporate 68,000 3,349 U S West Inc. 52,900 1,686 -------- Total 25,990 -------- Total Common Stock 565,267 -------- PREFERRED STOCK (0.0%) DIVERSIFIED (0.0%) Teledyne, Inc. 265 $ 4 -------- Total Preferred Stock 4 -------- MONEY MARKET INVESTMENTS (7.3%) AUTO (1.7%) +Ford Motor Credit Company, 5.29%, 7/10/96 $4,000,000 $ 3,994 +Ford Motor Credit Company, 5.45%, 7/3/96 6,200,000 6,196 -------- Total 10,190 -------- DRUGS (1.6%) +SmithKline Beecham Corp., 5.37%, 7/31/96 10,000,000 9,952 -------- FEDERAL GOVERNMENT & AGENCIES (0.7%) +U.S. Treasury, 4.99%, 8/22/96 4,500,000 4,464 -------- FINANCIAL SERVICES (0.3%) +General Electric Capital Corporation, 5.34%, 7/3/96 2,100,000 2,099 -------- TELECOMMUNICATIONS (3.0%) +U. S. West Communications Group, 5.35%, 7/16/96 18,000,000 17,955 -------- Total Money Market Investments 44,660 -------- Total Investments $609,931 ========
* Non-Income Producing + Partially or fully held by the custodian in a segregated account as collateral for open financial futures contracts. Information regarding open future contracts as of June 30, 1996 is summarized below:
UNREALIZED NUMBER OF EXPIRATION APPRECIATION ISSUER CONTRACTS DATE (000'S) -------------------- --------- -------------- ------------ S&P 500 Stock Index 131 September 1996 $895
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 52 56 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (93.5%) AEROSPACE (1.4%) Boeing Company 20,500 $ 1,786 -------- AIRLINES (1.7%) *AMR Corporation 11,000 1,001 *Midwest Express Holdings, Inc. 37,000 1,189 -------- Total 2,190 -------- AUTO & TRUCKS (1.5%) Chrysler Corporation 10,800 670 Harley Davidson Inc. 29,000 1,193 -------- Total 1,863 -------- AUTO RELATED (1.5%) Echlin Inc. 34,300 1,299 Magna International Inc. 12,200 561 -------- Total 1,860 -------- BANKS (4.3%) BankAmerica Corporation 17,600 1,333 Chase Manhattan Corporation 23,340 1,648 Citicorp 14,400 1,190 First Union Corporation 19,700 1,199 -------- Total 5,370 -------- BEVERAGES (2.5%) Coca-Cola Company 17,200 841 Pepsico Inc. 65,000 2,299 -------- Total 3,140 -------- BUILDING & CONSTRUCTION (0.7%) PPG Industries Inc. 19,000 926 -------- CHEMICALS (2.3%) E.I. du Pont de Nemours & Co. 10,150 803 Ecolab, Inc. 26,000 858 Union Carbide Corporation 30,000 1,193 -------- Total 2,854 -------- CHEMICALS-SPECIALTY (0.9%) Avery Dennison Corp. 20,000 1,098 -------- DIVERSIFIED (1.2%) Allied Signal Inc. 26,100 1,491 -------- DRUGS (3.2%) Eli Lilly & Company 22,600 1,469 Merck & Co., Inc. 21,900 1,415 Pfizer Inc. 15,400 1,099 -------- Total 3,983 -------- ELECTRICAL EQUIPMENT (4.4%) Emerson Electric Co. 17,000 1,536 General Electric Company 31,900 2,759 W.W. Grainger, Inc. 16,600 1,287 -------- Total 5,582 -------- ELECTRONICS (3.4%) EG & G, Inc. 34,700 742 Hewlett-Packard Company 15,000 1,494 Intel Corp. 15,400 1,131 Molex Inc. 29,408 864 -------- Total 4,231 -------- ENVIRONMENTAL CONTROL (0.4%) Nalco Chemical Company 17,000 536 -------- MARKET VALUE SHARES (000'S) ---------- -------- FINANCE COMPANIES (1.3%) *Associates First Capital Corporation 45,000 $ 1,693 -------- FINANCIAL SERVICES (5.5%) AT&T Corporation 27,800 1,724 Dean Witter, Discover & Co. 8,000 458 Donaldson, Lufkin & Jenrette 30,000 930 Electronic Data Systems Corp. 31,800 1,709 Franklin Resources 19,400 1,183 Merrill Lynch & Co. 14,000 912 -------- Total 6,916 -------- FOOD SERVICE/LODGING (2.6%) *Harrahs Entertainment 9,800 277 McDonald's Corporation 34,400 1,608 *Promus Hotels 45,000 1,333 -------- Total 3,218 -------- FOODS (3.3%) CPC International Corp. 18,900 1,361 Campbell Soup Company 21,100 1,488 General Mills, Inc. 24,300 1,324 -------- Total 4,173 -------- HEALTH CARE SERVICES (2.1%) Columbia/HCA Healthcare Corp. 22,400 1,196 United Healthcare Corp. 29,100 1,470 -------- Total 2,666 -------- HOSPITAL SUPPLIES (2.7%) Guidant Corp. 31,000 1,527 Johnson & Johnson 38,200 1,891 -------- Total 3,418 -------- HOUSEWARES (2.5%) First Brands Corporation 66,000 1,782 Newell Co. 44,200 1,354 -------- Total 3,136 -------- INSURANCE (3.1%) CIGNA Corporation 11,300 1,332 Everest Reinsurance Holdings Inc. 57,000 1,475 Progressive Corp. 24,000 1,110 -------- Total 3,917 -------- LEISURE RELATED (2.4%) Walt Disney Company 22,600 1,421 Mattel, Inc. 55,281 1,582 -------- Total 3,003 -------- MACHINERY (1.1%) Deere & Company 16,600 664 Ingersoll-Rand Company 15,700 687 -------- Total 1,351 -------- MEDIA (1.8%) *U S West Media Group 25,500 465 *United States Satellite Broadcast 48,000 1,812 -------- Total 2,277 -------- METALS & MINING (0.9%) AK Steel Holding Corporation 30,000 1,174 --------
53 57 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) NATURAL GAS (1.00%) Sonat Inc. 28,000 $ 1,260 -------- OFFICE EQUIPMENT (1.3%) International Business Machines Corp. 16,200 1,604 -------- OFFICE EQUIPMENT-SERVICES (3.8%) Alco Standard Corporation 18,800 850 First Data Corporation 21,300 1,696 *Microsoft Corporation 10,000 1,201 *Office Max, Inc. 43,600 1,041 -------- Total 4,788 -------- OIL & GAS-DOMESTIC (1.5%) Ashland Inc. 9,100 361 Tosco Corporation 5,000 251 Unocal Corp. 37,700 1,272 -------- Total 1,884 -------- OIL & GAS-INTERNATIONAL (4.8%) Amoco Company 15,600 1,129 British Petroleum Co Ltd 13,600 1,454 Exxon Corporation 13,200 1,147 Mobil Corporation 12,400 1,390 Texaco Inc. 10,800 906 -------- Total 6,026 -------- PAPER (0.4%) International Paper Company 14,000 515 -------- PRINTING & PUBLISHING (3.2%) McGraw-Hill Companies Inc. 26,200 1,199 *Scholastic Corp. 30,300 1,879 Tribune Company 13,800 1,002 -------- Total 4,080 -------- RAILROADS (1.8%) +Canadian National Railway Co. 95,500 2,316 -------- RETAIL-FOOD (0.9%) Albertson's, Inc. 27,800 1,149 -------- RETAIL-GENERAL (7.0%) *DST Systems, Inc. 50,000 1,600 Dayton Hudson Corporation 5,600 578 *Federated Department Stores 36,000 1,229 Home Depot, Inc. 27,200 1,469 *Kohls Department Stores 40,000 1,465 J.C. Penney Company, Inc. 13,100 688 Walmart Stores Inc. 15,200 386 MARKET SHARES/ VALUE PAR (000'S) ---------- -------- RETAIL-GENERAL (CONTINUED) Walgreen Company 40,200 $ 1,347 -------- Total 8,762 -------- SOAPS & TOILETRIES (2.1%) Gillette Company 14,000 873 Procter & Gamble Company 20,200 1,831 -------- Total 2,704 -------- TELECOMMUNICATIONS (2.7%) Frontier Corp. 48,100 1,473 *WorldCom Inc. 34,400 1,905 -------- Total 3,378 -------- TOBACCO (1.2%) Philip Morris Companies 14,800 1,538 -------- UTILITY-ELECTRIC (1.7%) Duke Power Company 22,900 1,174 FPL Group, Inc. 20,500 943 Southern Company 3,500 86 -------- Total 2,203 -------- UTILITY-TELEPHONE (1.4%) Ameritech Corporation 15,200 903 GTE Corporation 19,600 877 -------- Total 1,780 -------- Total Common Stock 117,839 -------- MONEY MARKET INVESTMENTS (6.5%) DRUGS (1.7%) SmithKline Beecham Corp., 5.37%, 7/31/96 $2,200,000 $ 2,189 -------- FINANCE COMPANIES (1.6%) ++Ford Motor Credit Company, 5.29%, 7/10/96 2,000,000 1,997 -------- FINANCIAL SERVICES (3.2%) BAT Capital Corporation, 5.35%, 7/15/96 2,000,000 1,995 General Electric Capital Corporation, 5.34%, 7/3/96 1,200,000 1,199 Philip Morris Capital Corp., 5.3%, 7/3/96 800,000 800 -------- Total 3,994 -------- Total Money Market Investments 8,180 -------- Total Investments $126,019 ========
* Non-Income Producing + Installment payment security initially purchased November 16, 1995, for which the Portfolio has paid $1,200,000 as of June 30, 1996. The Portfolio will make the final installment payment of approximately $800,000 on November 29, 1996. ++ $800,000 is segregated as collateral for future payment of the installment payment security. The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 54 58 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (96.3%) AEROSPACE (2.9%) Boeing Company 51,300 $ 4,469 Sundstrand Corp. 23,900 875 -------- Total 5,344 -------- APPAREL TEXTILE (0.5%) *Fruit of the Loom Incorporated 32,600 831 -------- AUTO & TRUCKS (1.4%) General Motors Corporation 47,300 2,477 -------- AUTO RELATED (1.1%) Cooper Tire & Rubber Company 86,700 1,929 -------- BANKS (6.6%) BankAmerica Corporation 18,100 1,371 Citicorp 23,300 1,925 First Union Corporation 14,300 871 *First USA Incorporated 15,600 858 Firstar Corporation 25,900 1,195 Fleet Financial Group Inc. 19,900 866 NationsBank Corp. 39,500 3,264 P P & L Logic 35,300 834 Standard Federal Bancorp 24,700 951 -------- Total 12,135 -------- BEVERAGES (2.0%) Pepsico Inc. 104,400 3,693 -------- BUILDING & CONSTRUCTION (0.6%) *USG Corporation 39,400 1,098 -------- CHEMICALS (3.8%) Albemarle Corporation 100,000 1,825 E.I. du Pont de Nemours & Co. 39,500 3,125 Union Carbide Corporation 51,000 2,027 -------- Total 6,977 -------- CHEMICALS-SPECIALITY (1.0%) Sigma-Aldrich Corp. 16,600 888 Wellman Inc. 37,300 872 -------- Total 1,760 -------- COAL, GAS AND PIPELINE (0.6%) Anadarko Petroleum Corp. 20,400 1,183 -------- DIVERSIFIED (3.9%) Allied Signal Inc. 45,800 2,616 *Coltec Industries Inc. 70,500 1,005 ITT Hartford Group 34,500 1,837 Teledyne, Inc. 48,100 1,738 -------- Total 7,196 -------- DRUGS (5.0%) *Forest Laboratories Inc. 66,100 2,553 Pfizer Inc. 42,200 3,012 Warner-Lambert Company 64,200 3,531 -------- Total 9,096 -------- ELECTRICAL EQUIPMENT (1.8%) General Electric Company 11,200 969 W.W. Grainger, Inc. 31,700 2,457 -------- Total 3,426 -------- MARKET VALUE SHARES (000'S) ---------- -------- ELECTRONICS (5.6%) Advanced Micro Devices, Inc. 41,800 $ 570 Duracell International Inc. 11,200 483 *EMC Corporation 93,000 1,732 *General Instrument Corp. 79,400 2,293 Hewlett-Packard Company 16,800 1,674 Perkin-Elmer Corporation 16,100 777 *SoftKey International Inc. 38,800 735 Tyco Laboratories, Inc. 47,700 1,944 -------- Total 10,208 -------- ENVIRONMENTAL CONTROL (1.9%) Johnson Controls Inc. 22,700 1,578 WMX Technologies, Inc. 60,400 1,978 -------- Total 3,556 -------- FEDERAL GOVERNMENT AGENCY RELATED (0.6%) Federal National Mortgage Assoc. 33,700 1,129 -------- FINANCIAL SERVICES (4.6%) AT&T Corporation 61,100 3,788 H.F. Ahmanson & Company 62,000 1,674 Dean Witter, Discover & Co. 36,600 2,095 Great Western Financial Corp. 35,900 857 -------- Total 8,414 -------- FOODS (1.9%) CPC International Corp. 12,900 929 Ralston Purina Group 25,100 1,610 Unilever, N.V. 6,300 914 -------- Total 3,453 -------- HEALTH CARE SERVICES (1.7%) Columbia/HCA Healthcare Corp. 56,500 3,016 -------- HOSPITAL SUPPLIES (1.9%) *Healthcare Retirement Corp. 64,350 1,528 *Humana, Inc. 111,500 1,993 -------- Total 3,521 -------- INSURANCE (2.3%) AMBAC, Inc. 24,400 1,272 MBIA Incorporated 4,500 350 Providian Corporation 59,000 2,530 -------- Total 4,152 -------- LEISURE RELATED (1.4%) International Game Technology 100,900 1,703 *Viacom Incorporated 20,700 787 -------- Total 2,490 -------- MACHINERY (1.5%) *Cooper Cameron Corp. 16,760 733 Cooper Industries, Inc. 49,062 2,036 -------- Total 2,769 -------- MEDIA (2.7%) *Tele-Communications, Inc. 179,200 3,248 Turner Broadcasting System Inc. 64,500 1,774 -------- Total 5,022 -------- METALS & MINING (1.5%) Aluminum Co. of America 48,600 2,788 --------
55 59 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) OFFICE EQUIPMENT (0.7%) *Quantum Corp. 84,600 $ 1,237 -------- OFFICE EQUIPMENT-SERVICES (1.8%) Adobe Systems Incorporated 20,600 739 Autodesk, Inc. 23,500 702 *Cisco Systems Incorporated 33,200 1,880 -------- Total 3,321 -------- OIL & GAS-DOMESTIC (2.7%) Ashland Inc. 51,100 2,025 Sun Company, Inc. 44,400 1,349 Unocal Corp. 45,000 1,519 -------- Total 4,893 -------- OIL & GAS-INTERNATIONAL (5.6%) Chevron Corp. 38,900 2,295 Exxon Corporation 21,200 1,842 Royal Dutch Petroleum Co., ADR 23,300 3,582 Texaco Inc. 30,300 2,541 -------- Total 10,260 -------- PAPER (0.9%) Mead Corp. 31,500 1,634 -------- PHOTO & OPTICAL (0.8%) Bausch & Lomb Inc. 36,400 1,547 -------- PRINTING & PUBLISHING (0.5%) Time Warner Inc. 24,700 968 -------- PROFESSIONAL SERVICES (2.5%) *Alza Corp. 47,600 1,303 Service Corporation International 60,100 3,456 -------- Total 4,759 -------- RAILROADS (2.4%) Union Pacific Corporation 61,800 4,318 -------- RETAIL-GENERAL (5.1%) Circuit City Stores, Inc. 28,500 1,030 *Federated Department Stores, Inc. 26,100 891 Melville Corporation 30,100 1,219 *Toys "R" Us 108,100 3,081 Wal-Mart Stores Inc. 124,900 3,169 -------- Total 9,390 -------- SOAPS & TOILETRIES (3.5%) Colgate-Palmolive Co. 21,300 1,805 Procter & Gamble Company 51,400 4,658 -------- Total 6,463 -------- MARKET SHARES/ VALUE PAR (000'S) ---------- -------- TELECOMMUNICATIONS (1.9%) MCI Communications Corporation 76,400 $ 1,958 Motorola, Inc. 25,000 1,572 -------- Total 3,530 -------- TOBACCO (3.5%) Philip Morris Companies, Inc. 61,100 6,354 -------- TRUCKING-SHIPPING (0.9%) Consolidated Freightways, Inc. 79,100 1,671 -------- UTILITY-ELECTRIC (1.9%) Allegheny Power System Inc. 29,600 914 FPL Group, Inc. 18,600 856 Houston Industries Incorporated 37,800 931 Pacific Gas & Electric Co. 32,000 744 -------- Total 3,445 -------- UTILITY-TELEPHONE (2.8%) Ameritech Corporation 25,200 1,496 Bellsouth Corporation 31,400 1,331 GTE Corporation 27,700 1,240 SBC Communications Incorporated 23,600 1,162 U S West Inc. 37,600 1,198 -------- Total 6,427 -------- Total Common Stock 177,880 -------- MONEY MARKET INVESTMENTS (3.7%) DRUGS (0.9%) SmithKline Beecham Corp., 5.37%, 7/31/96 $1,700,000 $ 1,692 -------- FINANCE COMPANIES (0.8%) Ford Motor Credit Company, 5.29%, 7/10/96 1,500,000 1,497 -------- FINANCIAL SERVICES (1.7%) BAT Capital Corporation, 5.35%, 7/15/96 1,300,000 1,297 General Electric Capital Corporation, 5.34%, 7/3/96 1,700,000 1,699 -------- Total 2,996 -------- FOODS (0.3%) Nestle Capital Corp., 5.52%, 7/1/96 600,000 600 -------- Total Money Market Investments 6,785 -------- Total Investments $184,665 ========
* Non-Income Producing The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 56 60 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- -------- COMMON STOCK (93.3%) AIRLINES (1.1%) Atlas Air, Inc. 147,500 $ 8,481 -------- AUTO RELATED (1.0%) *Custom Chrome Inc. 142,300 3,824 *Tower Automotive, Inc. 152,300 3,731 -------- Total 7,555 -------- BANKS (0.2%) *Texas Regional Bancshares Inc. 75,000 1,875 -------- BEVERAGES (1.0%) *Robert Mondavi Corporation 261,200 8,228 -------- BUILDING & CONSTRUCTION (1.0%) *NCI Building Systems 221,800 7,486 -------- CHEMICALS-SPECIALITY (1.7%) Cambrex Corporation 137,200 7,014 A Schulman Inc. 274,950 6,736 -------- Total 13,750 -------- DRUGS (1.5%) Cardinal Health Inc. 162,612 11,728 -------- ELECTRICAL EQUIPMENT (1.5%) *CIDCO Incorporated 154,400 5,443 Methode Electronics Inc. 400,700 6,812 -------- Total 12,255 -------- ELECTRONICS (3.4%) *ADC Telecommunication 162,400 7,308 AVX Corporation 125,000 2,312 *Computer Products, Inc. 220,000 3,768 *Gemstar International Group 125,000 3,750 *In Focus Systems Inc. 96,300 2,335 Molex Inc. 184,789 5,428 *Xylan Corporation 43,800 2,037 -------- Total 26,938 -------- ENVIRONMENTAL CONTROL (1.1%) *TETRA Technologies, Inc. 448,941 8,979 -------- FINANCIAL SERVICES (2.1%) Investors Financial Services 200,000 4,650 Money Store, Inc. 320,150 7,083 *WFS Financial Corporation 242,600 5,457 -------- Total 17,190 -------- FOOD SERVICE/LODGING (2.5%) *Hospitality Franchise Systems, Inc. 183,100 12,817 *Studio Plus Hotels Inc. 210,100 6,933 -------- Total 19,750 -------- HOSPITAL SUPPLIES (17.1%) *Access Health, Inc. 109,500 5,174 *American Medical Response Inc. 223,800 7,889 *Apria Healthcare Group, Inc. 190,500 5,977 Compdent Corporation 127,000 5,905 *Gulf South Medical Supply, Inc. 277,800 10,834 *Inbrand Corporation 353,250 9,891 *Integra Life Sciences Corporation 533,600 5,203 *Medaphis Corporation 125,000 4,969 *Medcath Incorporated 153,800 1,846 *Occusystems, Inc. 205,900 7,696 *Orthodontic Centers of America 236,400 6,265 MARKET VALUE SHARES (000'S) ---------- -------- HOSPITAL SUPPLIES (CONTINUED) *Patterson Dental Company 234,650 $ 8,506 *PhyCor, Inc. 204,300 7,763 *Physician Sales & Service, Inc. 159,100 3,858 *Quorum Health Group, Inc. 225,900 5,958 *Respironics Inc. 319,600 5,913 *Steris Corp. 237,500 7,600 *Sybron, Inc. 273,900 6,848 *United Dental Care, Inc. 210,600 8,898 *Vivra Incorporated 289,900 9,530 -------- Total 136,523 -------- INSURANCE (2.2%) CMAC Investment Corp. 121,600 6,992 *CRA Managed Care Inc. 125,000 5,594 *Riscorp, Inc. 295,800 5,398 -------- Total 17,984 -------- LEISURE RELATED (3.8%) *Blythe Industries, Inc. 288,000 13,068 The Marcus Corporation 144,050 3,619 *Regal Cinemas 192,500 8,807 *Scientific Games Holding Corp. 176,800 5,127 -------- Total 30,621 -------- MACHINERY (1.4%) *ABC Rail Products 193,000 4,174 Kaydon Corporation 166,400 7,155 -------- Total 11,329 -------- MEDIA (0.3%) *Clear Channel Communications 30,000 2,471 -------- OFFICE EQUIPMENT (9.6%) *Cambridge Technology Partners 386,100 11,776 *CBT Group 92,000 4,255 *DST Systems, Inc. 201,100 6,435 *Metatools, Inc. 61,600 1,448 *Nu-Kote Holdings Inc. -- "A" Series 396,400 6,590 Paychex Incorporated 215,450 10,369 *Peak Technologies 219,800 5,138 *Sterling Commerce, Inc. 137,400 5,101 *Sterling Software, Inc. 121,100 9,325 *USCS International, Inc. 36,000 693 *Viking Office Products Inc. 369,000 11,577 *Zebra Technologies 235,400 4,178 -------- Total 76,885 -------- OFFICE EQUIPMENT-SERVICES (9.8%) American Management System Inc. 412,275 12,059 Danka Business Systems 117,500 3,437 First Data Corporation 157,395 12,533 HBO & Co. 150,000 10,163 *Intuit Inc. 50,000 2,363 *Medic Computer Systems, Inc. 92,300 7,488 National Data Corp. 145,000 4,966 *PMT Services, Inc. 305,400 8,742 *Peoplesoft, Inc. 170,400 12,141 *Trident International, Inc. 195,000 4,241 -------- Total 78,133 --------
57 61 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- -------- COMMON STOCK (CONTINUED) OIL & GAS PROGRAMS (0.7%) Parker And Parsley Petroleum Co. 209,500 $ 5,814 -------- OIL FIELD SERVICES (1.5%) Production Operators Corp. 151,800 5,123 Tosco Corporation 134,800 6,774 -------- Total 11,897 -------- PAPER (0.6%) Wausau Paper Mills Company 253,418 5,005 -------- PRINTING & PUBLISHING (1.1%) *Catalina Marketing Corporation 97,600 8,930 -------- PROFESSIONAL SERVICES (4.6%) *CUC International Inc. 253,450 8,997 Cintas Corporation 165,300 8,844 *Corrections Corporation of America 45,300 3,171 *Interim Services Inc. 118,500 5,095 *Metromail Corporation 30,000 671 *Robert Half International Inc. 343,000 9,561 -------- Total 36,339 -------- RAILROADS (0.8%) *Wisconsin Central Transportation 188,700 6,133 -------- RETAIL-GENERAL (8.9%) *Corporate Express, Inc. 196,600 7,864 *Eastbay, Inc. 73,500 1,103 Fastenal Co. 188,900 8,217 *Global Direct Mail Corp. 213,900 8,449 *K & G Men's Center, Inc. 335,000 7,035 *Kohls Department Stores 195,200 7,149 *Micro Warehouse Inc. 80,100 1,602 *Multiple Zones International Inc. 150,000 1,988 *Oakley, Inc. 173,000 7,872 *Office Max, Inc. 336,000 8,022 *O'Reilly Automotive, Inc. 183,800 6,663 *Tractor Supply Company 221,200 5,032 -------- Total 70,996 -------- TELECOMMUNICATIONS (8.1%) *AirTouch Communications 190,700 5,387 *APAC TeleServices, Inc. 201,000 7,236 MARKET SHARES/ VALUE PAR (000'S) ----------- -------- TELECOMMUNICATIONS (CONTINUED) *LCI International 321,800 $ 10,096 *Mcleod, Inc. 22,500 540 *Midcom Communication 101,000 1,452 *Premiere Technologies, Inc. 151,200 4,763 *Saville Systems 250,100 6,909 *Tellabs Inc. 170,000 11,369 *Tesco Technologies Incorporation 190,700 6,961 *Transaction Systems Architects 153,113 10,259 -------- Total 64,972 -------- TRANSPORTATION (0.6%) *Coach USA, Inc. 230,000 5,117 -------- TRUCKING-SHIPPING (4.1%) *Eagle USA Airfreight, Inc. 195,100 7,219 *Fritz Companies, Inc. 305,600 9,856 *Heartland Express Incorporated 282,962 7,569 *Landstar System, Inc. 278,800 8,085 -------- Total 32,729 -------- Total Common Stock 746,093 -------- MONEY MARKET INVESTMENTS (6.7%) DRUGS (1.8%) SmithKline Beecham Corp., 5.37%, 7/31/96 $14,000,000 $ 13,933 -------- FINANCE COMPANIES (1.5%) Ford Motor Credit Company, 5.29%, 7/10/96 12,000,000 11,981 -------- FINANCIAL SERVICES (3.4%) BAT Capital Corporation, 5.35%, 7/17/96 12,000,000 11,968 General Electric Capital Corporation, 5.34%, 7/3/96 3,400,000 3,398 General Electric Company, 5.31%, 7/3/96 12,000,000 11,993 -------- Total 27,359 -------- Total Money Market Investments 53,273 -------- Total Investments $799,366 ========
* Non-Income Producing The Accompanying Notes are an Integral Part of the Financial Statements (Prepared From Unaudited Figures) 58 62 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE COUNTRY SHARES (000'S) ------- ---------- -------- COMMON STOCKS (84.2%) AIRLINES (1.2%) Quantas Airways (144A) Austrl. 165,000 $ 2,788 Singapore Airlines Ltd. Sing. 205,000 2,165 -------- Total 4,953 -------- APPLIANCES & HOUSEHOLD DURABLES (1.3%) Sony Corporation Jpn. 83,000 5,468 -------- AUTOMOBILES (2.4%) Renault SA Fr. 152,000 3,927 Volvo Aktiebogelegt, B Free Swe. 260,000 5,928 -------- Total 9,855 -------- BANKING & CREDIT (14.9%) Argentina Corp. Bancaris de Espania, ADR Sp. 195,000 4,290 Australia & New Zealand Bank Group Austrl. 926,097 4,382 Banco Bilboa Vizcaya Sp. 162,500 6,590 Banco de Andulucia Sp. 30,000 4,184 Banque National de Paris, ADR (144A) Fr. 146,500 5,146 Barkley's Bank, PLC U.K. 311,016 3,732 BPI Soc de Gestora de Part Sa ORD Pte. 146,350 1,857 Canadian Imperial Bank of Commerce Can. 177,000 5,711 Deutsche Bank Ger. 111,500 5,279 HSBC Holdings ORD H.K. 308,237 4,659 Komercni Bank GDR (144A) Czk. 30,000 810 Komercni Bank ORD Czk. 15,000 1,224 Merita Limited Series "A" Fin. 1,000,000 2,115 National Bank of Canada Montreal Can. 360,000 3,006 Panin Bank Foreign Registered Indo. 1,782,000 1,646 Stadshypotek AB "A" (144A) Swe. 120,000 2,682 Svenska Handelsbanken S A Swe. 230,000 4,810 -------- Total 62,123 -------- BEVERAGES & TOBACCO (0.2%) Swedish Match AB Feuer Swe. 240,000 747 -------- BUILDING MATERIALS AND COMPONENTS (1.1%) Pioneer International Ltd. Austrl. 1,600,000 4,653 -------- BUSINESS & PUBLIC SERVICE (3.4%) Esselte AB, Series "A" Swe. 269,900 5,461 Hyder PLC U.K. 371,666 4,120 Hyder PLC Cum. Red. Pfd. U.K. 401,400 602 Societe Generale de Surv Holdings Swtz. 885 2,120 *Waste Management PLC, ADR U.K. 168,000 1,869 -------- Total 14,172 -------- CHEMICALS (4.4%) Bayer AG Ger. 180,000 6,362 European Vinyls Corp. EVC International Neth. 36,525 1,135 Rhone Poulenc SA, NPV Fr. 6,508 171 Rhone Poulenc SA, Series A Fr. 243,000 6,391 Solvay Et Cie A NPV Bel. 7,300 4,519 -------- Total 18,578 -------- MARKET VALUE COUNTRY SHARES (000'S) ------- ---------- -------- CONSTRUCTION AND HOUSING (1.2%) Daito Trust Construction Co. Jpn. 195,000 $ 2,922 Kyudendo Corp. Jpn. 146,000 1,961 -------- Total 4,883 -------- ELECTRICAL & ELECTRONICS (3.7%) ABB AG Baden Bearer Swtz. 4,730 5,858 Alcatel Alsthom DG Fr. 57,500 5,019 Hitachi Ltd. Jpn. 505,000 4,707 -------- Total 15,584 -------- ELECTRICAL COMPONENTS, INSTRUMENTS (1.2%) BICC, ORD U.K. 1,015,000 4,880 -------- ENERGY SOURCES (3.6%) Hafslund Nycomed "A" Nor. 170,000 1,218 Repsol SA Sp. 122,000 4,247 Saga Petrolium Nor. 260,000 3,825 Societe Nationale Elf Aquitane Fr. 77,801 5,726 -------- Total 15,016 -------- FINANCIAL SERVICES (4.3%) AXA SA Fr. 93,928 5,142 AXA Temp. Nontradeable Cert. Fr. 1,785 98 *Capital Portugal Fund Port. 22,000 2,173 Chile Fund U.S. 35,000 858 India Fund, Series "B" U.K. 1,256,515 2,411 *JF Indonesia Fund Inc. H.K. 456,600 575 Korea International Trust Kor. 52 2,626 Thai Fund Inc. Thai. 70,817 1,673 Thailand International Fund Thai. 70 2,327 -------- Total 17,883 -------- FOOD & HOUSEHOLD PRODUCTS (3.2%) Albert Fisher Group U.K. 6,429,590 4,595 Cafe de Coral Holdings, Ltd. H.K. 7,672,000 2,131 Hillsdown Holdings U.K. 1,800,892 4,840 Vitro SA NPV Mex. 768,400 1,783 -------- Total 13,349 -------- FOREST PRODUCTS & PAPER (2.8%) Carter Holt Harvey Ltd. N.Z. 1,995,957 4,567 Metsa Serla OY "B" Fin. 277,500 1,977 PT Barito Pacifice Timber Indo. 937,000 614 Stora Kopparberg, Series "B" Free Swe. 350,000 4,624 -------- Total 11,782 -------- HEALTH & PERSONAL CARE (2.1%) Astra AB Series "A" Free Swe. 140,000 6,194 Nycomed ASA Series "A" Norw. 170,000 2,449 -------- Total 8,643 -------- INSURANCE (3.9%) Aegon NV Neth. 120,147 5,537 ING Groep NV Neth. 190,000 5,671 London Insurance Group Can. 162,600 3,406 *Zurich Versicherung Swtz. 5,800 1,582 -------- Total 16,196 --------
59 63 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE COUNTRY SHARES (000'S) ------- ---------- -------- COMMON STOCKS (CONTINUED) MACHINERY & ENGINEERING (1.3%) Hitachi Koki Co. Ltd. Jpn. 181,000 $ 1,786 VA Technologies AG Bearer (144A) Aus. 30,000 3,689 -------- Total 5,475 -------- MERCHANDISING (1.7%) Koninklijke Bijenkorf Beheer Neth. 44,098 3,729 Kwik Save Group U.K. 457,252 3,197 -------- Total 6,926 -------- METALS & MINING (2.1%) Elkem A S Oslo ord A Free Nor. 192,000 2,647 *Inmet Mining Ltd. Can. 192,500 1,403 Pechinery Cert. D'Invest Fr. 47,500 986 *Union Minerie, NPV Bel. 50,500 3,921 -------- Total 8,957 -------- MULTI-INDUSTRY (5.1%) Amer Group "A" Fin. 175,000 2,946 BTR Nylex Ltd. Austrl. 249,000 957 Comp Gen de Industrieset de Partec Fr. 4,500 1,036 Hutchinson Whampoa H.K. 798,000 5,020 Jardine Matheson Holdings H.K. 550,501 4,046 Jardine Strategic Holdings H.K. 1,019,055 3,261 Marlene Wendel SA Fr. 5,025 416 Swire Pacific Class "A" H.K. 472,500 4,044 -------- Total 21,726 -------- RAILROAD (0.8%) Brambles Ind. Ltd. Austrl. 240,000 3,335 -------- TELECOMMUNICATIONS (9.2%) CIA de Inversiones en Tel Euro Chile 73,150 4,280 CIA De Telefons Chile SA Chile 36,500 3,582 Nacional Fincanciera CNV Mex. 117,802 3,946 Phillipine Long Distance Telephone Phil 79,000 4,592 *SPT Telecom AS Chez. 36,000 4,397 Stet Di Risp Non-Conv. Italy 2,490,000 6,543 Telebras ADR Braz. 77,500 5,396 Telefonica De Espana Sp. 315,000 5,809 -------- Total 38,545 -------- MARKET SHARES/ VALUE COUNTRY PAR (000'S) ------- ---------- -------- UTILITIES-ELECTRIC & GAS (7.8%) British Gas U.K. 1,358,200 $ 3,777 *CEZ Ceske Energeticke Zavody Chez. 101,990 4,059 Electicidad De Caracas Venz. 3,416,836 2,841 Endesa National De Electric Sp. 63,000 3,933 Evn Energierversorgung Aus. 38,400 5,310 Hong Kong Electric H.K. 990,000 3,018 Iberdrola SA Sp. 587,500 6,036 *Veba AG Warrants, Exp. 4/6/98 Ger. 12,000 3,425 -------- Total 32,399 -------- WHOLESALE & INTERNATIONAL TRADE (1.3%) Brierley Investments Ltd. TD N.Z. 5,716,091 5,421 -------- Total Common Stock 351,549 -------- BONDS (3.4%) BANKING AND CREDIT (1.8%) PIV Financial Inc. Cayman, 4.5%, 12/1/00 H.K. $2,750,000 $ 2,310 CS Holding Finance BV, 4 7/8%, 11/19/02 U.K. 3,715,000 5,387 -------- Total 7,697 -------- FEDERAL GOVERNMENT & AGENCIES (0.7%) U.S. Treasury Notes, 5 1/8%, 4/30/98 U.S. 2,757,000 2,711 -------- UTILITIES-ELECTRIC & GAS (0.9%) National Power, Convertible Bond, 6 1/4%, 9/23/08 U.K. 2,138,000 3,952 -------- Total Bonds 14,360 -------- MONEY MARKET INVESTMENTS (12.4%) FINANCIAL SERVICES (8.1%) American Express, 5.39%, 7/1/96 U.S. 17,000,000 17,000 West Landesbank TD, 5.5%, 7/1/96 U.S. 17,000,000 17,000 -------- Total 34,000 -------- INSURANCE (4.3%) Prudential, 5.42%, 7/1/96 U.S. 17,924,000 17,924 -------- Total Money Market Investments 51,924 -------- Total Investments $417,833 ========
* Non-Income Producing The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 60 64 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ---------- -------- BONDS (80.2%) AIRLINES (1.2%) Delta Air Lines, Inc., 9 3/4%, 5/26/03 $ 546,000 $ 604 Delta Air Lines, Inc., 9 3/4%, 6/1/03 1,605,000 1,775 -------- Total 2,379 -------- AUTO RELATED (0.5%) Hertz Corp., 9.04%, 6/14/00 900,000 965 -------- BANKS (0.9%) Natwest Capital Corporation, 12 1/8%, 11/15/02 1,700,000 1,815 -------- BEVERAGES (2.6%) Coca-Cola Enterprises Inc., 8%, 1/4/05 5,000,000 5,310 -------- CHEMICALS (1.0%) Dow Capital B.V., 8 1/2%, 6/8/10 1,800,000 1,952 -------- CMO & LOAN-BACKED CERTIFICATES (14.4%) CIT RV Owner Trust, 6 1/4%, 1/15/11 1,757,347 1,746 Eaglemark Trust, 6 3/4%, 11/15/02 (144A) 2,000,000 2,006 Federal Home Loan Mortgage Corp., 7%, 6/1/25 6,007,242 5,784 Federal Home Loan Mortgage Corp., 7 1/4%, 4/15/18 2,425,000 2,445 Federal Home Loan Mortgage Corp., 7%, 3/15/07 1,875,000 1,824 Federal Home Loan Mortgage Corp., 6%, 7/15/07 3,900,000 3,717 Federal National Mortgage Assoc., 6 3/4%, 12/25/23 3,500,000 3,129 Ford Motor Credit Grantor Trust, 5.9%, 10/15/00 2,387,105 2,378 Premier Auto Trust, 6.65%, 4/2/98 3,300,000 3,321 Rural Housing Trust, 6.33%, 4/1/26 2,456,020 2,372 -------- Total 28,722 -------- FEDERAL GOVERNMENT AND AGENCIES (30.5%) Government National Mortgage Assoc., 8 1/2%, 3/15/23 10,896 11 Government National Mortgage Assoc., 7%, 5/15/23 488,463 472 Government National Mortgage Assoc., 7 1/2%, 2/15/24 1,853,867 1,828 Government National Mortgage Assoc., 7%, 5/15/23 3,075,777 2,969 Government National Mortgage Assoc., 8 1/2%, 9/15/24 16,828 17 Government National Mortgage Assoc., 8 1/2%, 6/15/23 19,578 20 Government National Mortgage Assoc., 8 1/2%, 6/15/24 392,903 405 MARKET VALUE PAR (000'S) ---------- -------- FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 7/15/24 $ 101,109 $ 104 Government National Mortgage Assoc., 8 1/2%, 2/15/25 115,766 119 Government National Mortgage Assoc., 7 1/2%, 1/15/24 895,729 883 Government National Mortgage Assoc., 7 1/2%, 1/15/24 883,135 871 Government National Mortgage Assoc., 8 1/2%, 2/15/25 17,576 18 Government National Mortgage Assoc., 8 1/2%, 11/15/24 312,612 322 Government National Mortgage Assoc., 8 1/2%, 5/15/26 227,390 234 Government National Mortgage Assoc., 7 1/2%, 6/15/24 1,685,286 1,661 Government National Mortgage Assoc., 8 1/2%, 11/15/24 314,859 324 Government National Mortgage Assoc., 8 1/2%, 4/15/26 399,976 412 Government National Mortgage Assoc., 8 1/2%, 11/15/24 473,409 487 Government National Mortgage Assoc., 8 1/2%, 4/15/26 379,073 390 Government National Mortgage Assoc., 8 1/2%, 5/15/26 779,846 803 Government National Mortgage Assoc., 8 1/2%, 9/15/21 198,322 204 Government National Mortgage Assoc., 7%, 6/15/23 2,765,711 2,670 U.S. Treasury, 7 1/8%, 2/15/23 8,000,000 8,080 U.S. Treasury, 6 1/4%, 8/15/23 1,500,000 1,359 U.S. Treasury, 7 1/2%, 11/15/24 19,000,000 20,140 U.S. Treasury, 6 3/8%, 8/15/02 1,000,000 991 U.S. Treasury, 6 7/8%, 7/31/99 15,000,000 15,216 -------- Total 61,010 -------- FINANCE COMPANIES (1.9%) Associates Corp. of North America, 7.95%, 2/15/10 1,500,000 1,594 Avco Financial Services, Inc., 5 7/8%, 10/15/97 2,200,000 2,191 -------- Total 3,785 -------- FINANCIAL SERVICES (1.8%) Beneficial Corp., 6.86%, 11/19/97 2,200,000 2,219 Electronic Data Systems Corp., 8.8%, 3/1/21 1,250,000 1,399 -------- Total 3,618 -------- FOODS (1.8%) Nabisco Inc., 8%, 1/15/00 1,500,000 1,552 RJR Nabisco Inc., 8 5/8%, 12/01/02 2,000,000 2,029 -------- Total 3,581 -------- FOREIGN GOVERNMENT BONDS (0.7%) Province of Quebec, 7 1/8%, 2/9/24 1,500,000 1,373 --------
61 65 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ---------- -------- BONDS (CONTINUED) LEISURE RELATED (3.8%) Tele Communications, Inc., 7 3/8%, 2/15/00 $2,000,000 $ 1,975 Tele Communications, Inc., 7 1/4%, 8/1/05 2,750,000 2,545 Time Warner Entertainment Inc., 8 7/8%, 10/1/12 2,000,000 2,066 Time Warner Entertainment Inc., 7 1/4%, 9/1/08 1,000,000 937 -------- Total 7,523 -------- OFFICE EQUIPMENT (1.5%) International Business Machines Corp., 6 3/8%, 11/1/97 3,000,000 3,008 -------- PRINTING & PUBLISHING (2.3%) News America Holdings Inc., 7 1/2%, 3/1/00 3,500,000 3,559 News America Holdings Inc., 8 1/4%, 8/10/18 1,000,000 983 -------- Total 4,542 -------- REAL ESTATE INVESTMENT TRUSTS (1.0%) Security Capital Industrial Trust, 7.3%, 5/15/01 2,000,000 1,981 -------- RETAIL-GENERAL (0.8%) Dayton Hudson Corporation, 8.6%, 1/15/12 1,500,000 1,620 -------- TOBACCO (1.4%) Philip Morris Companies, 9%, 5/15/98 1,750,000 1,824 Philip Morris Companies, 9 1/4%, 2/15/00 1,000,000 1,078 -------- Total 2,902 -------- UTILITY-ELECTRIC (11.2%) Cleveland Electric Illum. Co., 7 3/8%, 6/1/03 1,000,000 904 Korea Electric Power Corporation, 7 3/4%, 4/1/13 2,000,000 1,974 Long Island Lighting Co., 9 5/8%, 7/1/24 1,500,000 1,499 Pacific Gas & Electric Co., 7 1/4%, 3/1/26 3,500,000 3,189 Pacific Gas & Electric Co., 5 3/8%, 8/1/98 2,600,000 2,543 MARKET VALUE PAR (000'S) ---------- -------- UTILITY-ELECTRIC (CONTINUED) Pennsylvania Power & Light, 5 1/2%, 4/1/98 $3,000,000 $ 2,947 PECO Energy Company, 7 1/2%, 1/15/99 1,500,000 1,528 PECO Energy Company, 7 3/4%, 3/1/23 1,150,000 1,112 Public Service Electric & Gas, 6 7/8%, 1/1/03 2,250,000 2,206 Texas Utilities Electric Co, 7 7/8, 3/1/23 2,250,000 2,180 UNICOM Corp., 6 1/2%, 4/15/00 2,300,000 2,256 -------- Total 22,338 -------- UTILITY-GAS (0.9%) Columbia Gas System Inc., 7.32%, 11/28/10 2,000,000 1,913 -------- Total Bonds 160,337 -------- MONEY MARKET INVESTMENTS (19.8%) AUTO (3.4%) Ford Motor Credit Company, 5.29%, 7/10/96 $6,900,000 $ 6,889 -------- DRUGS (4.0%) SmithKline Beecham Corp., 5.37%, 7/31/96 8,000,000 7,962 -------- FINANCE COMPANIES (1.1%) Associates Corp. of North America, 6 7/8%, 1/15/97 2,200,000 2,212 -------- FINANCIAL SERVICES (9.3%) BAT Capital Corporation, 5.35%, 7/17/96 8,000,000 7,979 General Electric Capital Corporation, 5.34%, 7/3/96 2,700,000 2,698 Philip Morris Capital Corp., 5.3%, 7/3/96 7,900,000 7,895 -------- Total Bonds 18,572 -------- UTILITY-ELECTRIC (2.0%) DTE Energy Company, 5.41%, 5/1/97 4,000,000 3,974 -------- Total Money Market Investments 39,609 -------- Total Investments $199,946 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 62 66 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ---------- ------- BONDS (87.0%) APPAREL, TEXTILES & FOOTWEAR (1.1%) +Ithaca Industries, 11 1/8%, 12/15/02 $1,700,000 $ 778 ------- AUTO RELATED (5.4%) Alamo Rent-A-Car Inc., 11 3/4%, 1/31/06 1,500,000 1,545 Collins & Aikman Products, 11 1/2%, 4/15/06 1,000,000 1,015 Exide Corporation, 10 3/4%, 12/15/02 500,000 507 ++Exide Corporation, 12 1/4%, 12/15/04 1,000,000 845 ------- Total 3,912 ------- BANKS (2.9%) First Nationwide Bank, 12 1/2%, 4/15/03 2,000,000 2,085 ------- BROADCASTING (1.4%) SFX Broadcasting, 10 3/4%, 5/15/06 (144A) 1,000,000 995 ------- BUILDING & CONSTRUCTION (1.5%) Primeco Inc., 12 3/4%, 3/1/05 1,000,000 1,070 ------- CABLE (5.5%) Adelphia Communications, 12 1/2%, 5/15/02 1,000,000 1,015 Lenfest Communications Inc., 10 1/2%, 6/15/06 (144A) 1,500,000 1,526 ++Marcus Cable Operating, 13 1/2%, 8/1/04 2,000,000 1,430 ------- Total 3,971 ------- CHEMICALS (2.8%) NL Industries, Inc., 11 3/4%, 10/15/03 1,000,000 1,020 Texas Petrochemical Corp., 11 1/8%, 7/1/06 (144A) 1,000,000 1,020 ------- Total 2,040 ------- ELECTRONICS (3.0%) Exide Electronics Group, 11 1/2%, 3/15/06 (144A) 2,000,000 2,120 ------- FINANCE COMPANIES (8.6%) Cobb Theatres/Financial Corp., 10 5/8%, 3/1/03 (144A) 1,500,000 1,534 Homeside Inc., 11 1/8%, 5/15/03 (144A) 2,000,000 2,070 Polysindo International Finance, 11 3/8%, 6/15/06 1,000,000 1,020 Trizec Finance, 10 7/8%, 10/15/05 1,500,000 1,538 ------- Total 6,162 ------- FOOD SERVICE/LODGING (1.9%) Fleming Companies, Inc., 10 5/8%, 12/15/01 1,500,000 1,361 ------- FOODS (0.7%) +Beatrice Foods, Inc., 12%, 12/1/01 1,500,000 465 ------- GAMING (13.1%) Alliance Gaming, 12 7/8%, 6/30/03 750,000 748 Aztar Corporation, 13 3/4%, 10/1/04 1,000,000 1,147 Bally's Grand, 10 3/8%, 12/15/03 1,000,000 1,096 GNF Corp., 10 5/8%, 4/1/03 1,500,000 1,639 Station Casinos, Inc., 10 1/8%, 3/15/06 500,000 489 Trump Atlantic City, 11 1/4%, 5/1/06 2,500,000 2,513 Trump Hotels & Casino Resort, 15 1/2%, 6/15/05 1,500,000 1,774 ------- Total 9,406 ------- LEISURE RELATED (1.5%) Cobblestone Holdings Inc., 0%, 6/1/04 (144A) 2,875,000 1,064 ------- MARKET VALUE PAR (000'S) ------- MEDICAL SUPPLIES (2.9%) Dade International Inc., 11 1/8%, 5/1/06 (144A) $2,000,000 $ 2,070 ------- OFFICE EQUIPMENT (1.5%) United Stationer Supply Co., 12 3/4%, 5/1/05 1,000,000 1,073 ------- OIL & GAS-DOMESTIC (0.9%) ++Transamerican Refining Corp., 18 1/2%, 2/15/02 1,000,000 635 ------- OIL & GAS-INTERNATIONAL (6.3%) Bridas Corporation, 12 1/2%, 6/10/03 (144A) 1,500,000 1,547 Mesa Operating Co., 10 5/8%, 7/1/06 1,000,000 1,011 Transtexas Gas, 11 1/2%, 6/15/02 2,000,000 1,995 ------- Total 4,553 ------- PAPER (3.5%) Indah Kiat International Finance, 12 1/2%, 6/15/06 1,000,000 1,065 Repap Wisconsin Incorporated, 9 1/4%, 2/1/02 500,000 471 Repap New Brunswick, 10 5/8%, 4/15/05 1,000,000 943 ------- Total 2,479 ------- RETAIL-FOOD (12.3%) Grand Union Company, 12%, 9/1/04 1,000,000 934 Jitney-Jungle Stores, 12%, 3/1/06 1,500,000 1,530 P & C Food Markets, Inc., 11 1/2%, 10/15/01 375,000 357 Pathmark Stores, 11 5/8%, 6/15/02 1,500,000 1,492 Penn Traffic Company, 9 5/8%, 4/15/05 1,000,000 717 Penn Traffic Company, 11 1/2%, 4/15/06 1,000,000 927 Ralphs Grocery Co., 11%, 6/15/05 1,500,000 1,380 Smiths Food & Drug, 11 1/8%, 5/15/07 1,500,000 1,519 ------- Total 8,856 ------- TELECOMMUNICATIONS (6.0%) ++Arch Communications, 10 7/8%, 3/15/08 1,750,000 901 Grupo Televisa, 11 3/8%, 5/15/03 (144A) 500,000 507 Grupo Televisa, 11 7/8%, 5/15/06 (144A) 1,000,000 1,020 ++Mobilemedia Communications, 10 1/2%, 12/1/03 1,000,000 710 ++Teleport Communications, 11 1/8%, 7/1/07 2,000,000 1,165 ------- Total 4,303 ------- TRUCKING-SHIPPING (2.8%) Gearbulk Holding Ltd., 11 1/4%, 12/1/04 1,000,000 1,050 Stena AB, 10 1/2%, 12/15/05 1,000,000 993 ------- Total 2,043 -------
63 67 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ------- BONDS (CONTINUED) UTILITY-PROJECT (1.4%) CE Casecan Water & Energy, Inc., 11.95%, 11/15/10 (144A) $1,000,000 $ 1,017 ------- Total Bonds 62,458 ------- COMMON STOCK WARRANTS (0.1%) PAPER (0.1%) *SDW Holdings Corporation 20,000 $ 62 ------- Total Common Stock Warrants 62 ------- PREFERRED STOCK (7.4%) BROADCASTING (0.7%) SFX Broadcasting Inc., 6 1/2, 5/31/07 (144A) 10,000 $ 518 ------- GAMING (1.8%) Alliance Gaming, 15%, 6/30/04 10,000 705 Station Casinos, 7%, 12/31/49 10,000 575 ------- Total 1,280 ------- PAPER (0.9%) SD Warren Co., 14%, 12/15/06 20,000 620 ------- MARKET VALUE PAR (000'S) ---------- ------- PRINTING AND PUBLISHING (4.0%) K-III Communications, 2.722%, 2/1/08 (144A) $ 10,000 $ 930 Time Warner Inc., 10 1/4%, 7/1/16 (144A) 20,000 1,960 ------- Total 2,890 ------- Total Preferred Stock 5,308 ------- MONEY MARKET INVESTMENTS (5.5%) FINANCE COMPANIES (3.7%) Ford Motor Credit Company, 5.45%, 7/3/96 $2,700,000 $ 2,698 ------- FINANCIAL SERVICES (0.8%) General Electric Capital Corporation, 5.34%, 7/3/96 600,000 600 ------- TOBACCO (1.0%) Philip Morris Companies, 5.34%, 7/31/96 700,000 697 ------- Total Money Market Investments 3,995 ------- Total Investments $71,823 =======
* Non-Income Producing. + Defaulted Security. ++ Denotes deferred interest security that receives no coupon payments until a predetermined date at which time the stated coupon rate becomes effective. The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 64 68 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ---------- -------- COMMERCIAL PAPER (96.8%) AUTO (5.0%) Ford Motor Credit Company, 5.29%, 7/10/96 $7,200,000 $ 7,188 -------- BEVERAGES (4.2%) Pepsico Inc., 5.75%, 9/6/96 6,000,000 5,999 -------- BUILDING-FOREST PRODUCTS (4.9%) Weyerhaeuser Company, 5.4%, 9/6/96 7,000,000 6,927 -------- CHEMICALS (4.9%) Monsanto Company, 5.27%, 7/15/96 7,000,000 6,984 -------- DRUGS (7.8%) American Home Products Corporation, 5.33%, 7/15/96 7,100,000 7,083 American Home Products Corporation, 5.58%, 7/1/96 4,100,000 4,099 -------- Total 11,182 -------- FINANCIAL SERVICES (19.2%) American General Finance Corporation, 5.37%, 8/28/96 7,100,000 7,036 CIT Group Holdings Inc., 5.27%, 7/17/96 7,200,000 7,181 General Electric Capital Corporation, 5.3%, 8/15/96 6,900,000 6,852 Transamerica Financial Corp., 5.31%, 8/14/96 6,400,000 6,357 -------- Total 27,426 -------- LEISURE RELATED (4.6%) Walt Disney Company, 5.2%, 9/16/96 6,600,000 6,525 -------- OFFICE EQUIPMENT (10.0%) IBM Credit Corporation, 5.32%, 7/31/96 7,050,000 7,017 Xerox Corporation, 5.29%, 7/29/96 7,100,000 7,069 -------- Total 14,086 -------- MARKET VALUE PAR (000'S) ---------- -------- PRINTING & PUBLISHING (3.5%) Dow Jones & Co. Inc., 5.33%, 7/15/96 $5,000,000 $ 4,988 -------- RETAIL-GENERAL (10.0%) J.C. Penney Funding Corp., 5.36%, 8/23/96 7,100,000 7,042 Sears Roebuck Acceptance Corp., 5.39%, 8/21/96 7,100,000 7,044 -------- Total 14,086 -------- TOBACCO (8.5%) Philip Morris Companies, 5.37%, 7/15/96 5,100,000 5,088 Philip Morris Companies, 5.28%, 7/1/96 7,100,000 7,098 -------- Total 12,186 -------- UTILITY-ELECTRIC (4.9%) National Rural Utility Finance Corp., 5.37%, 8/29/96 7,000,000 6,936 -------- UTILITY-TELEPHONE (9.3%) American Telephone & Telegraph Co., 5.35%, 8/9/96 6,700,000 6,659 Bellsouth Telecommunication, 5.35%, 8/27/96 6,700,000 6,641 -------- Total 13,300 -------- Total Commercial Paper 137,813 -------- ASSET-BACKED SECURITIES (3.2%) AUTO RELATED (3.2%) Carco Auto Loan Master Trust, 5.53%, 7/15/96 (Variable rate; puttable; coupon indexed to one month Commercial Paper rate plus 7.5 basis points; reset monthly) $4,550,000 $ 4,550 -------- Total Asset-Backed Securities 4,550 -------- Total Investments $142,363 ========
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 65 69 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (52.5%) AEROSPACE (1.1%) Boeing Company 77,900 $ 6,787 General Dynamics Corporation 14,200 880 Harris Corporation 8,700 531 Lockheed Martin Corporation 44,761 3,760 McDonnell Douglas Corporation 50,000 2,425 Northrop Grumman Corporation 12,800 872 Raytheon Company 53,900 2,783 Rockwell International Corporation 48,900 2,800 United Technologies Corp. 27,400 3,151 ---------- Total 23,989 ---------- AIRLINES (0.2%) *AMR Corporation 20,200 1,838 Delta Air Lines, Inc. 13,900 1,154 Southwest Airlines Co. 32,500 947 *USAir Group, Inc. 14,300 257 ---------- Total 4,196 ---------- APPAREL TEXTILE (0.3%) Brown Group, Inc. 4,000 69 *Fruit of the Loom, Incorporated 17,100 436 Liz Claiborne, Inc. 16,500 571 Nike, Inc. 32,300 3,319 Reebok International, Ltd. 16,500 555 Russell Corp. 8,800 243 Springs Industries, Inc. 4,500 227 Stride Rite Corp. 11,100 92 VF Corporation 14,300 853 ---------- Total 6,365 ---------- AUTO & TRUCKS (1.1%) Chrysler Corporation 84,200 5,220 Ford Motor Company 264,700 8,570 General Motors Corporation 170,200 8,914 *Navistar International Corp. 16,970 168 PACCAR Incorporated 8,795 431 ---------- Total 23,303 ---------- AUTO RELATED (0.3%) Cooper Tire & Rubber Company 18,800 418 Dana Corporation 22,900 710 Eaton Corporation 17,500 1,026 Echlin Inc. 13,800 523 Genuine Parts Company 27,450 1,256 Goodyear Tire & Rubber Company 34,900 1,684 Snap-On Incorporated 9,200 436 TRW Inc. 14,700 1,321 ---------- Total 7,374 ---------- BANKS (3.7%) Banc One Corporation 101,811 3,462 Bank of Boston Corporation 25,200 1,247 Bank of New York Company Inc. 43,900 2,250 Bankamerica Corporation 82,400 6,242 Bankers Trust New York Corporation 17,900 1,322 Barnett Banks Inc. 21,200 1,293 Boatmans Bancshares, Inc. 35,600 1,428 Chase Manhattan Corporation 98,224 6,937 Citicorp 109,500 9,047 Comerica, Inc. 26,300 1,174 Corestates Financial Corp. 49,900 1,921 MARKET VALUE SHARES (000'S) ----------- ---------- BANKS (CONTINUED) Fifth Third Bancorp 23,000 $ 1,242 First Bank System Inc. 31,800 1,844 First Chicago NBD Corp. 71,305 2,790 First Union Corporation 64,205 3,908 Fleet Financial Group Inc. 59,119 2,572 KeyCorp 52,200 2,023 Mellon Bank Corporation 30,850 1,758 J.P. Morgan & Company, Inc. 42,300 3,580 National City Corp. 49,800 1,749 Nationsbank Corp. 67,400 5,569 Norwest Corporation 82,400 2,874 PNC Bank Corp. 76,700 2,282 Republic New York Corporation 12,500 778 Suntrust Banks Inc. 51,100 1,891 U.S. Bancorp of Oregon 36,300 1,311 Wachovia Corporation 38,000 1,662 Wells Fargo & Company 21,966 5,247 ---------- Total 79,403 ---------- BEVERAGES (2.2%) Anheuser-Busch Companies, Inc. 57,000 4,275 Brown-Forman Corp. 15,500 620 The Coca-Cola Company 562,000 27,468 Adolph Coors Co. 8,500 152 Pepsico Inc. 352,900 12,484 Seagram Company Ltd. 84,200 2,831 ---------- Total 47,830 ---------- BUILDING & CONSTRUCTION (0.1%) Centex Corporation 6,400 199 Kaufman & Broad Home Corp. 8,700 126 Masco Corporation 36,100 1,092 Owens-Corning Fiberglas Corp. 11,600 499 Pulte Corporation 6,100 163 Sherwin-Williams Company 19,300 897 ---------- Total 2,976 ---------- BUILDING-FOREST PRODUCTS (0.3%) Boise Cascade Corporation 10,900 399 Champion International Corp. 21,500 898 Georgia-Pacific Corp. 20,600 1,463 Louisiana-Pacific Corporation 24,400 540 Potlatch Corporation 6,500 254 Weyerhaeuser Company 44,700 1,900 ---------- Total 5,454 ---------- CHEMICALS (1.3%) Air Products & Chemicals, Inc. 25,200 1,455 Dow Chemical Company 56,300 4,279 E.I. Du Pont De Nemours & Co. 126,200 9,986 Eastman Chemical Company, Inc. 17,875 1,088 *FMC Corporation 8,400 548 B.F. Goodrich Company 11,900 445 Hercules Incorporated 24,400 1,348 Monsanto Company 132,600 4,309 PPG Industries Inc 42,600 2,077 Praxair, Inc. 34,800 1,470 Rohm & Haas Company 14,900 935 Union Carbide Corporation 30,000 1,192 ---------- Total 29,132 ----------
66 70 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) CHEMICALS-SPECIALTY (0.3%) Avery Dennison Corp. 11,900 $ 653 Engelhard Corp. 32,400 745 W.R. Grace & Co. 22,100 1,566 Great Lakes Chemical 14,500 903 Morton International, Inc. 33,100 1,233 Nalco Chemical Company 15,100 476 Sigma-Aldrich Corp. 11,200 599 ---------- Total 6,175 ---------- COAL, GAS & PIPELINE (0.2%) Burlington Resources, Inc. 28,500 1,225 Eastern Enterprises 4,500 150 ENSERCH Corp. 15,400 335 NACCO Industries, Inc. 2,000 111 Panenergy Corp. 34,000 1,118 Sonat Inc. 19,400 873 ---------- Total 3,812 ---------- COMPUTER RELATED (2.0%) Alco Standard Corporation 28,800 1,303 *Amdahl Corporation 26,800 288 *Apple Computer, Inc. 27,800 584 *Ceridian Corp. 15,300 773 *Compaq Computer Corporation 60,400 2,975 *Cray Research, Inc. 5,800 140 *Data General Corporation 8,800 114 *Digital Equipment Corporation 34,500 1,553 *EMC Corporation 52,000 968 *General Instrument Corp. 28,400 820 Hewlett-Packard Company 114,800 11,437 *Intergraph Corp. 10,400 126 International Business Machines Corp. 122,400 12,118 Moore Corporation Ltd. 22,500 425 Pitney Bowes Inc. 33,700 1,609 *Silicon Graphics 36,600 878 *Sun Microsystems Inc. 41,300 2,432 *Tandem Computers Inc. 26,400 327 *Unisys Corporation 38,600 275 Xerox Corporation 72,900 3,900 ---------- Total 43,045 ---------- CONTAINERS (0.1%) Ball Corporation 6,800 195 Bemis Company, Inc. 11,800 413 Crown Cork & Seal Company, Inc. 28,800 1,296 *Tupperware Corporation 13,900 587 ---------- Total 2,491 ---------- DIVERSIFIED (0.9%) Allied Signal Inc. 63,700 3,639 Corning Inc. 52,000 1,995 Dial Corp. 21,300 610 EG&G, Inc. 10,700 229 ITT Industries Inc. 26,500 666 Loews Corp. 26,500 2,090 Minnesota Mining & Mfg. Company 94,200 6,500 Teledyne, Inc. 12,600 455 Tenneco Inc. 39,100 1,999 Textron Inc. 18,900 1,510 Whitman Education Group Inc. 23,700 572 ---------- Total 20,265 ---------- MARKET VALUE SHARES (000'S) ----------- ---------- DRUGS (3.3%) American Home Products Corporation 142,500 $ 8,568 *Amgen Inc. 59,900 3,235 Bristol-Myers Squibb Company 113,200 10,188 Eli Lilly & Company 124,000 8,060 Merck & Co., Inc. 276,400 17,862 Pharmacia & Upjohn Inc. 114,730 5,091 Pfizer Inc. 143,500 10,242 Schering-Plough Corporation 83,000 5,208 Warner-Lambert Company 61,100 3,360 ---------- Total 71,814 ---------- ELECTRICAL EQUIPMENT (2.0%) Emerson Electric Co. 50,500 4,564 General Electric Company 374,300 32,377 W.W. Grainger, Inc. 11,500 891 Honeywell Inc. 28,600 1,559 Raychem Corp. 10,000 719 Thomas & Betts Corporation 9,000 337 Westinghouse Electric Corporation 93,900 1,761 Whirlpool Corporation 16,700 829 ---------- Total 43,037 ---------- ELECTRONICS (1.1%) *Advanced Micro Devices, Inc. 30,400 414 AMP Incorporated 48,936 1,964 *Applied Materials Inc. 40,400 1,232 Intel Corp. 184,900 13,579 *LSI Logic Corp. 28,900 751 Micron Technology 46,800 1,211 *National Semiconductor Corporation 30,500 473 Perkin-Elmer Corporation 9,700 468 Tektronix, Inc. 7,400 331 Texas Instruments Incorporated 42,700 2,130 Tyco International Ltd. 34,300 1,398 ---------- Total 23,951 ---------- ENVIRONMENTAL CONTROL (0.3%) Browning-Ferris Industries Inc. 47,900 1,389 Laidlaw Transportation Limited 66,200 670 WMX Technologies, Inc. 111,300 3,645 ---------- Total 5,704 ---------- FEDERAL GOVERNMENT AGENCY RELATED (0.5%) Federal Home Loan Mortgage Corp. 40,300 3,446 Federal National Mortgage Assoc. 245,900 8,238 ---------- Total 11,684 ---------- FINANCIAL SERVICES (1.2%) H.F. Ahmanson & Company 26,000 702 Alexander & Alexander Services 10,000 197 American Express Company 108,800 4,855 Beneficial Corporation 12,000 673 Dean Witter, Discover & Co. 37,550 2,150 Golden West Financial Corporation 13,300 745 Great Western Financial Corporation 30,800 735 Green Tree Financial Corp. 30,800 962 Household International Inc. 21,900 1,664 MBNA Corp. 50,125 1,429
67 71 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) FINANCIAL SERVICES (CONTINUED) Marsh & McLennan Companies, Inc. 16,400 $ 1,583 Merrill Lynch & Co. 38,600 2,514 Morgan Stanley Group Inc. 34,400 1,690 Salomon Inc. 23,700 1,043 Transamerica Corporation 15,300 1,239 Travelers Group Inc. 106,770 4,871 ---------- Total 27,052 ---------- FOOD SERVICE/LODGING (0.6%) Darden Restaurant Inc. 35,900 386 *Harrahs Entertainment 23,100 653 Hilton Hotels Corporation 11,000 1,237 *ITT Corp. 26,400 1,749 Luby's Cafeterias, Inc. 5,300 125 Marriott International 28,700 1,543 McDonald's Corporation 157,700 7,372 *Ryan's Family Steak Houses, Inc. 11,800 109 *Shoney's Inc. 9,400 102 Wendy's International, Inc. 28,600 533 ---------- Total 13,809 ---------- FOODS (1.6%) Archer Daniels Midland Company 117,084 2,239 CPC International Corp. 32,800 2,362 Campbell Soup Company 56,200 3,962 ConAgra Inc. 54,700 2,482 General Mills, Inc. 35,900 1,957 H.J. Heinz Company 83,250 2,529 Hershey Foods Corp. 17,400 1,277 Kellogg Company 47,900 3,509 Pioneer Hi-Bred International 18,700 989 Quaker Oats Company 30,400 1,037 Ralston Purina Group 23,900 1,533 Sara Lee Corporation 109,000 3,529 Unilever, N.V. 36,000 5,224 Wm. Wrigley Jr. Company 26,200 1,323 ---------- Total 33,952 ---------- HOSPITAL SUPPLIES (1.6%) Abbott Laboratories Inc. 177,000 7,699 Allergan Incorporated 14,600 573 Allergan Incorporated-Rights 463 0 C.R. Bard, Inc. 12,800 435 Bausch & Lomb Inc. 12,800 544 Baxter International Inc. 61,200 2,892 Becton, Dickinson & Company 14,400 1,156 *Biomet, Inc. 26,000 374 *Boston Scientific Corp. 40,100 1,804 Johnson & Johnson 300,000 14,850 Mallinckrodt Group 16,700 649 Medtronic, Incorporated 52,700 2,951 Millipore Corp. 10,000 419 *St. Jude Medical, Inc. 18,050 605 U.S. Surgical Corporation 13,900 431 ---------- Total 35,382 ---------- HOUSEHOLD FURNITURE (0.2%) Armstrong World Industries, Inc. 8,300 478 Black & Decker Corporation 19,700 761 Maytag Corporation 23,700 495 Newell Co. 35,700 1,093 MARKET VALUE SHARES (000'S) ----------- ---------- HOUSEHOLD FURNITURE (CONTINUED) Rubbermaid, Inc. 34,100 $ 929 The Stanley Works 19,900 592 ---------- Total 4,348 ---------- INSURANCE (1.6%) Aetna Life & Casualty Company 25,900 1,852 Allstate Corporation 100,147 4,569 American General Corporation 46,700 1,699 American International Group, Inc. 106,550 10,508 Aon Corporation 24,400 1,238 CIGNA Corporation 17,200 2,027 The Chubb Corporation 39,500 1,970 General Re Corporation 18,300 2,786 ITT Hartford Group 26,400 1,406 Jefferson-Pilot Corp. 16,050 829 Lincoln National Corporation 23,500 1,087 Providian Corporation 21,100 905 SAFECO Corp. 28,400 1,005 St. Paul Companies, Inc. 18,900 1,011 Torchmark Corporation 16,200 709 UNUM Corporation 16,500 1,027 USF&G Corp. 26,900 440 USLIFE Corporation 7,750 255 ---------- Total 35,323 ---------- LEISURE RELATED (1.0%) *Bally Entertainment Corporation 11,300 311 Brunswick Corporation 22,100 442 Comcast Corp. 53,950 998 Walt Disney Company 152,736 9,603 Fleetwood Enterprises, Inc. 10,300 319 Hasbro Inc. 19,600 701 *King World Productions, Inc. 8,400 306 Mattel, Inc. 62,360 1,785 Outboard Marine Corporation 4,500 82 *Tele Communications, Inc. 147,000 2,664 *U S West Media Group 106,300 1,940 *Viacom Incorporated 83,256 3,164 ---------- Total 22,315 ---------- MACHINERY (0.8%) Briggs & Stratton Corporation 6,500 267 Case Corporation 16,300 782 Caterpillar Inc. 43,700 2,961 Cincinnati Milacron Inc. 9,000 216 Cooper Industries, Inc. 24,300 1,008 Crane Co. 6,800 279 Cummins Engine Company, Inc. 9,000 363 Deere & Company 59,100 2,364 Dover Corporation 25,600 1,181 Fluor Corporation 18,800 1,229 Foster Wheeler Corporation 9,100 408 General Signal Corporation 11,200 424 Giddings & Lewis Company 7,800 127 Harnischfeger Industries, Inc. 10,600 352 Illinois Tool Works Inc. 26,800 1,812 Ingersoll-Rand Company 24,600 1,076 Johnson Controls Inc. 9,300 646 Pall Corporation 25,866 624 Parker-Hannifin Corporation 16,700 708
68 72 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) MACHINERY (CONTINUED) Timken Company 7,100 $ 275 TRINOVA Corp. 6,400 214 *Varity Corporation 8,900 428 ---------- Total 17,744 ---------- MEDICAL SERVICES (0.6%) *Beverly Enterprises, Inc. 22,500 270 Columbia/HCA Healthcare Corporation 100,800 5,380 *Community Psychiatric Centers 9,800 93 Humana, Inc. 36,500 652 Manor Care, Inc. 14,100 555 *Tenet Healthcare Corp. 48,500 1,037 United Healthcare Corp. 41,000 2,070 U.S. HealthCare Incorporated 34,700 1,908 ---------- Total 11,965 ---------- METALS & MINING (0.7%) Alcan Aluminum Limited 50,900 1,552 Aluminum Co. of America 39,600 2,272 ASARCO, Inc. 9,600 265 Barrick Gold Corporation 80,400 2,181 Cyprus Amex Minerals Co. 20,900 473 Echo Bay Mines Limited Co. 29,400 316 Freeport-McMoRan Copper & Gold Inc. 43,900 1,399 Homestake Mining Company 33,000 565 Inco Limited 26,400 851 Newmont Mining Corporation 22,389 1,105 Phelps Dodge Corporation 14,900 929 Placer Dome Incorporated 53,800 1,284 Reynolds Metals Company 14,300 745 Santa Fe Pacific Gold Corp. 29,640 419 ---------- Total 14,356 ---------- OFFICE EQUIPMENT-SERVICES (1.6%) Autodesk, Inc. 10,400 311 Automatic Data Processing, Inc. 65,200 2,518 Computer Associates International Inc. 54,450 3,880 *Computer Sciences Corp. 12,600 942 First Data Corporation 50,300 4,005 *Microsoft Corporation 133,700 16,061 *Novell, Inc. 82,300 1,142 *Oracle Corporation 147,300 5,809 Shared Medical Systems Corp. 5,200 334 ---------- Total 35,002 ---------- OIL & GAS-DOMESTIC (0.8%) Amerada Hess Corporation 20,900 1,121 Ashland Oil, Inc. 14,400 571 Atlantic Richfield Company 36,200 4,290 Coastal Corp. 23,700 989 Kerr-McGee Corporation 11,300 688 Louisiana Land & Exploration Co. 7,600 438 Occidental Petroleum Corporation 71,900 1,780 *Oryx Energy Company 23,500 382 Pennzoil Company 10,500 486 Phillips Petroleum Company 59,000 2,471 *Santa Fe Energy Resources, Inc. 20,300 241 Sun Company, Inc. 16,600 504 USX-U S Steel Group Inc. 18,800 533 Unocal Corp. 55,700 1,880 ---------- MARKET VALUE SHARES (000'S) ----------- ---------- OIL & GAS-DOMESTIC (CONTINUED) Total $ 16,374 ---------- OIL & GAS-INTERNATIONAL (3.4%) Amoco Company 111,800 8,092 Chevron Corp. 147,000 8,673 Exxon Corporation 279,700 24,299 Mobil Corporation 88,800 9,957 Royal Dutch Petroleum Co., ADR 120,700 18,558 Texaco Inc. 59,500 4,991 ---------- Total 74,570 ---------- OIL FIELD SERVICES (0.4%) Baker Hughes, Inc. 32,100 1,055 Dresser Industries, Inc. 40,900 1,207 Halliburton Company 25,800 1,432 Helmerich & Payne, Inc. 5,600 205 McDermott International, Inc. 12,300 257 *Rowan Companies, Inc. 19,100 282 Schlumberger Limited 54,700 4,608 *Western Atlas International Inc. 12,000 699 ---------- Total 9,745 ---------- PAPER (0.5%) International Paper Company 67,200 2,478 James River Corp. of Virginia 19,100 504 Kimberly-Clark Corporation 63,266 4,887 Mead Corp. 11,900 617 Stone Container Corporation 22,300 307 Temple-Inland Inc. 12,500 584 Union Camp Corporation 15,600 761 Westvaco Corporation 22,850 683 Willamette Industries Inc. 12,400 738 ---------- Total 11,559 ---------- PHOTO & OPTICAL (0.3%) Eastman Kodak Company 77,900 6,057 Polaroid Corporation 10,300 470 ---------- Total 6,527 ---------- PRINTING & PUBLISHING (0.8%) American Greetings Corp. 16,800 460 Deluxe Corp. 18,600 660 R.R. Donnelley & Sons Company 34,700 1,210 Dow Jones & Company, Inc. 21,900 914 Dun & Bradstreet Corporation 38,300 2,394 Gannett Company Inc. 31,700 2,243 Harcourt General 16,000 800 The John H. Harland Company 6,900 170 Jostens, Inc. 8,700 172 Knight-Ridder Inc. 11,000 797 Mcgraw-Hill Companies Inc. 22,600 1,034 Meredith Corporation 6,200 259 New York Times Company 22,000 718 Time Warner Inc. 88,400 3,470 Times Mirror Company 23,600 1,027 Tribune Company 13,900 1,009 ---------- Total 17,337 ---------- PROFESSIONAL SERVICES (0.3%) *Alza Corp. 19,000 520 H & R Block, Inc. 23,300 760 *CUC International Inc. 42,850 1,521
69 73 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) PROFESSIONAL SERVICES (CONTINUED) Ecolab, Inc. 14,500 $ 478 Interpublic Group of Cos. Inc. 17,800 834 National Service Industries, Inc. 10,800 423 Ogden Corporation 11,200 203 Safety-Kleen Corp. 13,000 228 Service Corporation International 26,400 1,518 ---------- Total 6,485 ---------- RAILROADS (0.5%) Burlington Northern Santa Fe 34,233 2,769 CSX Corporation 47,600 2,297 Conrail Incorporated 17,600 1,168 Norfolk Southern Corporation 28,700 2,432 Union Pacific Corporation 46,300 3,235 ---------- Total 11,901 ---------- RETAIL-FOOD (0.4%) Albertson's, Inc. 56,700 2,346 American Stores Co. 33,700 1,390 Fleming Companies, Inc. 8,500 122 Giant Food Inc. 13,400 481 Great Atlantic & Pacific Tea Co., Inc. 8,600 283 *The Kroger Company 28,000 1,106 Supervalue Inc. 15,200 479 Sysco Corporation 40,900 1,401 Winn-Dixie Stores, Inc. 34,200 1,210 ---------- Total 8,818 ---------- RETAIL-GENERAL (2.3%) *Charming Shoppes Incorporated 23,200 164 Circuit City Stores, Inc. 22,000 795 Dayton Hudson Corporation 16,200 1,671 Dillard Department Stores, Inc. 25,500 931 *Federated Department Stores, Inc. 46,700 1,594 The Gap, Inc. 64,900 2,085 Home Depot, Inc. 107,666 5,814 K Mart Corporation 108,200 1,339 The Limited Inc. 61,000 1,311 Longs Drug Stores Corp. 4,500 201 Lowe's Companies, Inc. 36,300 1,311 May Department Stores Company 56,300 2,463 Melville Corporation 23,700 960 Mercantile Stores Company 8,300 487 Nordstrom, Inc. 18,300 814 J.C. Penney Company, Inc. 50,600 2,656 Pep Boys - Manny, Moe & Jack 14,000 476 *Price/Costco, Inc. 44,051 953 Rite Aid Corporation 18,900 562 Sears, Roebuck & Company 88,300 4,294 TJX Companies, Inc. 16,300 550 Tandy Corporation 13,600 644 *Toys "R" Us 61,600 1,756 Wal-Mart Stores Inc. 516,400 13,104 Walgreen Company 55,400 1,856 *Woolworth Corp. 30,000 675 ---------- Total 49,466 ---------- SOAPS & TOILETRIES (1.2%) Alberto-Culver Company 6,300 292 Avon Products, Inc. 30,200 1,363 MARKET VALUE SHARES (000'S) ----------- ---------- SOAPS & TOILETRIES (CONTINUED) Clorox Company 11,700 $ 1,037 Colgate-Palmolive Co. 33,000 2,797 Gillette Company 100,200 6,250 International Flavors & Fragrances, Inc. 25,000 1,191 Procter & Gamble Company 154,400 13,992 ---------- Total 26,922 ---------- STEEL (0.2%) *Armco Inc. 23,900 119 *Bethlehem Steel Corporation 25,000 297 Inland Steel Industries, Inc. 11,000 216 Nucor Corp. 19,700 997 USX-Marathon Group 64,700 1,302 Worthington Industries, Inc. 20,400 426 ---------- Total 3,357 ---------- TELECOMMUNICATIONS (2.9%) AT&T Corporation 361,800 22,432 *Airtouch Communications 112,300 3,172 *Andrew Corporation 13,575 730 *Bay Networks 42,300 1,089 *Cabletron Systems Inc. 16,200 1,112 *Cisco Systems Incorporated 128,000 7,248 *DSC Communications Corp. 26,100 786 MCI Communications Corporation 155,600 3,987 Motorola, Inc. 133,300 8,381 Northern Telecom Limited 57,900 3,148 Scientific-Atlanta, Inc. 17,200 267 Sprint Corporation 98,300 4,129 *Tellabs Inc. 20,000 1,338 *3COM Corp. 37,600 1,720 *World Communications 43,700 2,420 ---------- Total 61,959 ---------- TOBACCO (1.1%) American Brands Inc. 39,900 1,810 Philip Morris Companies, Inc. 186,800 19,427 UST Incorporated 45,500 1,558 ---------- Total 22,795 ---------- TRUCKING-SHIPPING (0.1%) Caliber System Inc. 8,800 299 Consolidated Freightways, Inc. 9,800 207 *Federal Express Corp. 12,800 1,050 Ryder System, Inc. 17,800 501 *Yellow Corp. 6,300 83 ---------- Total 2,140 ---------- UTILITY-ELECTRIC (1.8%) American Electric Power Co. Inc. 42,000 1,790 Baltimore Gas & Electric Co. 33,200 942 Carolina Power & Light Company 34,200 1,300 Central & South West Corporation 47,100 1,366 Cinergy Corporation 35,505 1,136 Consolidated Edison Co. of New York 52,900 1,547 DTE Energy Company 32,700 1,010 Dominion Resources Inc. 39,900 1,596 Duke Power Company 46,100 2,363 Edison International 100,300 1,768 Entergy Corporation 51,300 1,456 FPL Group, Inc. 41,400 1,904
70 74 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET SHARES/ VALUE PAR (000'S) ----------- ---------- COMMON STOCK (CONTINUED) UTILITY-ELECTRIC (CONTINUED) General Public Utilities 27,100 $ 955 Houston Industries Incorporated 59,200 1,458 *Niagara Mohawk Power Corporation 32,500 252 Northern States Power Company 15,400 760 Ohio Edison Company 34,400 752 PECO Energy Company 50,000 1,300 P P & L Resources Inc. 35,900 848 Pacific Enterprises 18,600 551 Pacific Gas & Electric Company 93,800 2,181 PacifiCorp 66,100 1,471 Public Service Enterprise Group, Inc. 55,100 1,508 Southern Company 151,000 3,718 Texas Utilities Company 50,900 2,176 UNICOM Corp. 48,400 1,349 Union Electric Company 23,000 926 ---------- Total 38,383 ---------- UTILITY-GAS (0.3%) Columbia Gas System Inc. 12,400 646 Consolidated Natural Gas Company 21,100 1,102 Enron Corp. 56,600 2,314 Nicor Inc. 11,300 321 Noram Energy Corporation 30,400 331 ONEOK, Inc. 6,100 152 Peoples Energy Corporation 7,900 265 Williams Companies Inc. 23,600 1,168 ---------- Total 6,299 ---------- UTILITY-TELEPHONE (2.4%) ALLTEL Corporation 42,700 1,313 Ameritech Corporation 125,100 7,428 Bell Atlantic Corporation 98,600 6,286 Bellsouth Corporation 223,900 9,488 GTE Corporation 219,600 9,827 NYNEX Corp. 98,300 4,669 Pacific Telesis Group 96,500 3,257 SBC Communications Incorporated 137,200 6,757 U S West Inc. 106,800 3,404 ---------- Total 52,429 ---------- Total Common Stock 1,140,314 ---------- PREFERRED STOCK (0.0%) DIVERSIFIED (0.0%) Teledyne, Inc. 641 $ 10 ---------- Total Preferred Stock 10 ---------- BONDS (30.1%) AIRLINES (0.3%) Delta Air Lines Inc, 9 3/4%, 5/19/03 $ 532,000 $ 588 Delta Air Lines Inc, 9 3/4%, 6/1/03 3,513,000 3,885 Delta Air Lines Inc, 9 3/4, 6/1/03 870,000 962 Delta Air Lines Inc, 9 3/4, 6/1/03 870,000 962 ---------- Total 6,397 ---------- AUTO RELATED (0.2%) Hertz Corp., 9.04%, 6/14/00 4,100,000 4,398 ---------- BANKS (0.5%) Natwest Capital Corporation, 12 1/8%, 11/15/02 10,450,000 11,159 ---------- MARKET VALUE PAR (000'S) ----------- ---------- BEVERAGES (0.6%) Coca-Cola Enterprises Inc., 8%, 1/4/05 10,000,000 10,620 ---------- CHEMICALS (0.4%) Dow Capital B.V., 8 1/2%, 6/8/10 8,200,000 $ 8,893 ---------- CMO & LOAN-BACKED CERTIFICATES (5.3%) CIT RV Owner Trust, 6 1/4%, 1/15/11 5,272,042 5,237 Eaglemark Trust, 6 3/4%, 11/15/02 (144A) 10,000,000 10,030 Federal Home Loan Mortgage Corp., 7%, 7/1/25 4,859,473 4,679 Federal Home Loan Mortgage Corp., 7%, 7/1/25 4,056,957 3,906 Federal Home Loan Mortgage Corp., 7%, 7/1/25 4,778,921 4,601 Federal Home Loan Mortgage Corp., 7 1/4%, 4/15/18 10,325,000 10,409 Federal Home Loan Mortgage Corp., 7%, 3/15/07 7,250,000 7,054 Federal Home Loan Mortgage Corp., 6%, 7/15/07 19,250,000 18,348 Federal Home Loan Mortgage Corp., 7%, 7/1/25 14,500,651 13,962 Federal National Mortgage Assoc., 6 3/4%, 12/25/23 6,500,000 5,811 Ford Motor Credit Grantor Trust, 5.9%, 10/15/00 5,569,911 5,549 Hanson Overseas B.V., 6 3/4%, 9/15/05 10,000,000 9,590 Premier Auto Trust, 6.65%, 4/2/98 6,930,000 6,973 Rural Housing Trust, 6.33%, 4/1/26 9,101,722 8,791 ---------- Total 114,940 ---------- FEDERAL GOVERNMENT AND AGENCIES (12.8%) Government National Mortgage Assoc., 7%, 9/15/23 109,224 105 Government National Mortgage Assoc., 7%, 10/15/23 203,644 197 Government National Mortgage Assoc., 7 1/2%, 8/15/24 935,507 922 Government National Mortgage Assoc., 7%, 9/15/23 24,591 24 Government National Mortgage Assoc., 7%, 7/15/23 784,937 758 Government National Mortgage Assoc., 7%, 5/15/23 8,984,533 8,673 Government National Mortgage Assoc., 7%, 5/15/23 6,369,117 6,148 Government National Mortgage Assoc., 7%, 6/15/23 326,857 316 Government National Mortgage Assoc., 7%, 10/15/23 28,702 28 Government National Mortgage Assoc., 7%, 5/15/23 205,436 198 Government National Mortgage Assoc., 7 1/2%, 1/15/24 210,213 207 Government National Mortgage Assoc., 7%, 7/15/23 750,877 725
71 75 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 2/15/25 123,619 $ 127 Government National Mortgage Assoc., 7%, 8/15/23 29,173 28 Government National Mortgage Assoc., 8 1/2%, 7/15/24 201,861 208 Government National Mortgage Assoc., 7%, 6/15/23 705,882 681 Government National Mortgage Assoc., 7%, 7/15/23 64,437 62 Government National Mortgage Assoc., 7%, 10/15/23 148,127 143 Government National Mortgage Assoc., 7%, 9/15/23 666,332 643 Government National Mortgage Assoc., 7 1/2%, 5/15/24 986,587 973 Government National Mortgage Assoc., 7%, 10/15/23 121,324 117 Government National Mortgage Assoc., 7 1/2%, 1/15/24 1,073,950 1,059 Government National Mortgage Assoc., 7%, 11/15/23 796,791 769 Government National Mortgage Assoc., 7%, 11/15/23 799,538 772 Government National Mortgage Assoc., 8 1/2%, 2/15/25 16,397 17 Government National Mortgage Assoc., 7%, 11/15/23 582,010 562 Government National Mortgage Assoc., 7%, 9/15/23 35,076 34 Government National Mortgage Assoc., 8 1/2%, 7/15/24 218,919 225 Government National Mortgage Assoc., 8 1/2%, 4/15/26 945,447 973 Government National Mortgage Assoc., 7%, 10/15/23 106,303 103 Government National Mortgage Assoc., 8 1/2%, 11/15/24 184,399 190 Government National Mortgage Assoc., 8 1/2%, 1/15/25 18,727 19 Government National Mortgage Assoc., 7 1/2%, 11/15/24 996,381 982 Government National Mortgage Assoc., 7 1/2%, 2/15/24 1,614,812 1,592 Government National Mortgage Assoc., 7 1/2%, 3/15/24 1,464,393 1,444 Government National Mortgage Assoc., 7 1/2%, 8/15/24 977,376 964 Government National Mortgage Assoc., 8 1/2%, 3/15/26 25,483 26 Government National Mortgage Assoc., 8 1/2%, 1/15/26 848,578 874 Government National Mortgage Assoc., 7 1/2%, 5/15/24 1,357,032 1,338 Government National Mortgage Assoc., 7 1/2%, 4/15/24 920,363 907 Government National Mortgage Assoc., 7 1/2%, 5/15/24 1,391,376 1,372 Government National Mortgage Assoc., 8 1/2%, 6/15/24 23,924 25 MARKET VALUE PAR (000'S) ----------- ---------- FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 1/15/25 53,685 $ 55 Government National Mortgage Assoc., 7 1/2%, 6/15/24 1,422,921 1,403 Government National Mortgage Assoc., 7 1/2%, 8/15/24 984,683 971 Government National Mortgage Assoc., 8 1/2%, 1/15/25 119,134 123 Government National Mortgage Assoc., 7 1/2%, 8/15/24 1,235,062 1,218 Government National Mortgage Assoc., 8 1/2%, 8/15/24 191,563 197 Government National Mortgage Assoc., 7 1/2%, 6/15/24 36,926 36 Government National Mortgage Assoc., 8 1/2%, 5/15/26 926,653 954 Government National Mortgage Assoc., 8 1/2%, 5/15/26 915,374 943 Government National Mortgage Assoc., 8 1/2%, 5/15/26 803,344 822 Government National Mortgage Assoc., 8 1/2%, 9/15/24 321,778 331 Government National Mortgage Assoc., 8 1/2%, 4/15/26 151,451 156 Government National Mortgage Assoc., 8 1/2%, 2/15/25 42,980 44 Government National Mortgage Assoc., 8 1/2%, 12/15/24 26,005 27 Government National Mortgage Assoc., 8 1/2%, 2/15/25 44,263 46 Government National Mortgage Assoc., 8 1/2%, 1/15/26 27,123 28 Government National Mortgage Assoc., 7%, 1/15/26 7,250,158 6,999 Government National Mortgage Assoc., 8 1/2%, 3/15/26 25,398 26 Government National Mortgage Assoc., 8 1/2%, 1/15/26 62,806 65 Government National Mortgage Assoc., 8 1/2%, 2/15/26 45,829 47 Government National Mortgage Assoc., 8 1/2%, 5/15/26 463,983 478 Government National Mortgage Assoc., 8 1/2%, 4/15/26 1,008,267 1,038 Government National Mortgage Assoc., 8 1/2%, 4/15/26 100,328 103 Government National Mortgage Assoc., 8 1/2%, 4/15/26 1,005,900 1,036 Government National Mortgage Assoc., 8 1/2%, 4/15/26 92,015 95 Government National Mortgage Assoc., 8 1/2, 5/15/26 39,479 41 Government National Mortgage Assoc., 8 1/2%, 5/15/26 906,063 933 Government National Mortgage Assoc., 8 1/2, 9/15/22 16,474 17 Government National Mortgage Assoc., 8 1/2%, 10/15/22 244,486 252 Government National Mortgage Assoc., 7%, 5/15/23 458,621 443
72 76 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 9/15/21 185,298 $ 191 Government National Mortgage Assoc., 8 1/2%, 7/15/21 176,618 182 Government National Mortgage Assoc., 8 1/2%, 5/15/22 9,509 10 Government National Mortgage Assoc., 8 1/2%, 10/15/22 12,019 12 Government National Mortgage Assoc., 8 1/2%, 9/15/22 198,398 204 Government National Mortgage Assoc., 8 1/2%, 10/15/22 51,732 53 Government National Mortgage Assoc., 8 1/2%, 12/15/22 54,472 56 Government National Mortgage Assoc., 8 1/2%, 11/15/25 25,804 27 U.S. Treasury, 7 1/8%, 2/15/23 27,500,000 27,775 U.S. Treasury, 7 5/8%, 2/15/25 22,500,000 24,258 U.S. Treasury, 7 1/4%, 8/15/04 16,000,000 16,565 U.S. Treasury, 6 3/4%, 4/30/00 18,000,000 18,191 U.S. Treasury, 5 3/4%, 10/31/00 21,150,000 20,595 U.S. Treasury, 5%, 2/15/99 100,000,000 97,032 U.S. Treasury, 6 7/8%, 5/15/06 9,000,000 9,098 U.S. Treasury Strips, 0%, 5/15/09 22,000,000 9,074 ---------- Total 277,780 ---------- FINANCE COMPANIES (0.6%) Associates Corp. of North America, 7.95%, 2/15/10 5,550,000 5,897 Avco Financial Services Inc., 5 7/8%, 10/15/97 6,800,000 6,773 ---------- Total 12,670 ---------- FINANCIAL SERVICES (1.5%) Beneficial Corp., 6.86%, 11/19/97 7,800,000 7,867 Beneficial Corp., 9 3/8%, 7/28/97 5,000,000 5,168 Electronic Data Systems Corp., 8.8%, 03/01/21 6,500,000 7,276 General Motors Acceptance Corp., 6 5/8%, 10/1/02 12,200,000 11,897 ---------- Total 32,208 ---------- FOODS (0.5%) Nabisco Inc., 8%, 1/15/00 3,500,000 3,621 RJR Nabisco Inc., 8 5/8%, 12/1/02 8,000,000 8,117 ---------- Total 11,738 ---------- FOREIGN GOVERNMENT BONDS (0.2%) Province of Quebec, 7 1/8%, 2/9/24 5,000,000 4,577 ---------- LEISURE RELATED (0.9%) Tele Communications, Inc., 7 3/8%, 2/15/00 8,000,000 7,899 Tele Communications, Inc., 7 1/8%, 8/1/05 4,250,000 3,933 Time Warner Entertainment Inc., 8 7/8%, 10/1/12 1,500,000 1,549 Time Warner Entertainment Inc., 7 1/4%, 9/1/08 6,500,000 6,090 ---------- Total 19,471 ---------- MARKET VALUE PAR (000'S) ----------- ---------- MUNICIPAL BONDS (0.1%) Government Trust Certificates, 8%, 5/15/98 2,083,649 $ 2,125 ---------- OFFICE EQUIPMENT (0.3%) International Business Machines Corp., 6 3/8%, 11/1/97 7,000,000 7,018 ---------- PRINTING & PUBLISHING (0.8%) News America Holdings Inc., 7 1/2%, 3/1/00 6,500,000 6,609 News America Holdings Inc., 8.45%, 8/1/34 10,000,000 10,576 ---------- Total 17,185 ---------- REAL ESTATE INVESTMENT TRUSTS (0.4%) Security Capital Industrial Trust, 7.3%, 5/15/01 8,000,000 7,922 ---------- RETAIL-GENERAL (0.3%) Dayton Hudson Corporation, 8.6%, 1/15/12 6,000,000 6,481 ---------- TOBACCO (0.2%) Philip Morris Companies, 9 1/4%, 2/15/00 2,100,000 2,263 Philip Morris Companies, 7 1/4%, 1/15/03 3,000,000 2,999 ---------- Total 5,262 ---------- UTILITY-ELECTRIC (3.9%) Atlantic City Electric Company, 6 5/8%, 8/1/13 4,000,000 3,572 Cleveland Electric Illuminating Co., 7 3/8%, 6/1/03 4,000,000 3,617 Dayton Power & Light Company, 8.15%, 1/15/26 5,750,000 5,868 Korea Electric Power Corporation, 7 3/4%, 4/1/13 3,000,000 2,961 Long Island Lighting Co., 9 5/8%, 7/1/24 1,500,000 1,499 Pacific Gas & Electric Co., 7 1/4%, 3/1/26 9,050,000 8,247 Pacific Gas & Electric Co., 5 3/8%, 8/1/98 5,000,000 4,891 Pacific Gas & Electric Co., 7 1/4%, 8/1/26 6,400,000 5,856 PECO Energy Company, 7 1/2%, 1/15/99 4,250,000 4,329 PECO Energy Company, 7 3/4%, 3/1/23 8,850,000 8,559 Public Service Electric & Gas Co., 6 1/8%, 8/1/02 9,000,000 8,538 Southern California Edison Co., 7 1/4%, 3/1/26 10,000,000 9,225 Texas Utilities Electric Co., 7 7/8%, 3/1/23 7,750,000 7,510 UNICOM Corp., 6 1/2%, 4/15/00 10,600,000 10,398 ---------- Total 85,070 ----------
73 77 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS JUNE 30, 1996
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) UTILITY-GAS (0.3%) Columbia Gas System Inc., 7.32%, 11/28/10 7,571,000 $ 7,243 ---------- Total Bonds 653,157 ---------- MONEY MARKET INVESTMENTS (17.4%) AUTO (0.4%) Ford Motor Credit Company, 5 5/8%, 3/3/97 $ 9,000,000 $ 8,980 ---------- DRUGS (2.1%) American Home Products Corporation, 5.31%, 7/10/96 21,000,000 20,966 American Home Products Corporation, 5.33%, 7/15/96 25,000,000 24,941 ---------- Total 45,907 ---------- FEDERAL GOVERNMENT AND AGENCIES (2.7%) +U.S. Treasury, 4.99%, 8/22/96 4,000,000 3,968 U.S. Treasury, 6 7/8%, 10/31/96 25,000,000 25,125 U.S. Treasury, 7 1/2%, 1/31/97 30,000,000 30,328 ---------- Total 59,421 ---------- FINANCE COMPANIES (1.7%) Associates Corp. of North America, 6 7/8%, 1/15/97 7,800,000 7,844 Commercial Credit Group Inc., 5.29%, 7/3/96 29,000,000 28,983 ---------- Total 36,827 ---------- FINANCIAL SERVICES (4.1%) American General Finance Corporation, 5.27%, 8/15/96 25,000,000 24,819 CIT Group, 5.39%, 8/30/96 21,000,000 20,802 General Electric Capital Corporation, 5.39%, 9/11/96 22,400,000 22,149 MARKET VALUE PAR (000'S) ----------- ---------- FINANCIAL SERVICES (CONTINUED) General Motors Acceptance Corp., 8 3/8%, 5/1/97 3,000,000 $ 3,053 Transamerica Financial Corp., 5.31%, 8/14/96 18,381,000 18,253 ---------- Total 89,076 ---------- LEISURE RELATED (0.9%) +Walt Disney Company, 5.2%, 9/16/96 20,000,000 19,761 ---------- OFFICE EQUIPMENT (2.2%) IBM Credit Corporation, 5.35%, 7/15/96 21,600,000 21,549 +Xerox Corporation, 5.29%, 7/29/96 25,400,000 25,287 ---------- Total 46,836 ---------- RETAIL-GENERAL (1.2%) Sears Roebuck Acceptance Corp., 5.28%, 8/15/96 25,000,000 24,819 ---------- TOBACCO (0.9%) Philip Morris Companies, 5.36%, 7/22/96 20,100,000 20,031 ---------- UTILITY-ELECTRIC (0.1%) Texas Utilities Electric Co., 9.39%, 11/21/96 250,000 253 ---------- UTILITY-TELEPHONE (1.1%) Ameritech Corporation, 5.36%, 8/28/96 25,000,000 24,772 ---------- Total Money Market Investments 376,683 ---------- Total Investments $2,170,164 ==========
* Non-Income Producing + Partially or fully held by the custodian in a segregated account as collateral for open financial futures contracts. Information regarding open futures contracts as of June 30, 1996 is summarized below:
UNREALIZED NUMBER OF EXPIRATION APPRECIATION ISSUER CONTRACTS DATE (000'S) - -------------------- --------- -------------- -------------- S&P 500 Stock Index 116 September 1996 $433
The Accompanying Notes are an Integral Part of the Financial Statements (Prepared from Unaudited Figures) 74 78 VARIABLE LIFE TRANSFER / ALLOCATION / DOLLAR COST AVERAGING POLICYOWNER SERVICES Insured Policy Number Date - ------------------------ ---------------------------------- ---------------------- GA# SA# Business Number: Home Number: - ------------------------ ---------------------------------- ---------------------- A TOTAL OF SIX DIVISIONS MAY BE ELECTED WITH A MINIMUM OF 10% IN EACH DIVISION. THIS APPLIES TO EXISTING ASSETS, FUTURE ALLOCATIONS AND DOLLAR COST AVERAGING. 1. REDISTRIBUTION OF EXISTING ASSETS: Complete this section if you want to redistribute the money already invested. Future investments will continue to be allocated as they were prior to the transfer, unless section 2 is completed. INVESTMENT DIVISIONS CHANGE TO Select Bond ________% International Equity ________% Money Market ________% 3. DOLLAR COST AVERAGING (DCA): For VCL only Balanced ________% Effective date for the first DCA transfer Index 500 Stock ________% ----------------------------------- Aggressive Growth Stock ________% ____ The month following the date this form is signed. High Yield Bond ________% Must have assets in Money Market on that date. Growth Stock ________% Choose Money Market in section 1 and Money Market Growth and Income Stock ________% in section 2. Total __100___% ____ With the next Premium/Dividend deposit, choose Money Market in section 2. 2. ALLOCATION OF FUTURE PREMIUM/DIVIDENDS: How would you like the funds transferred? Choose one: Complete this section to change where your future Premium/Dividends are invested. Allocations of future investments will be ____ Option One: Transfer in monthly installments so at effective with the next Premium/Dividend year end, Money Market balance will be zero. deposit ____ Option Two: Specified amount to be ALLOCATION OF FUTURE transferred monthly of $_______________. INVESTMENT DIVISIONS PREMIUMS/DIVIDENDS Select Bond ________% Select Bond ________% International Equity ________% International Equity ________% Money Market ________% Balanced ________% Balanced ________% Index 500 Stock ________% Index 500 Stock ________% Aggressive Growth Stock ________% Aggressive Growth Stock ________% High Yield Bond ________% High Yield Bond ________% Growth Stock ________% Growth Stock ________% Growth and Income Stock ________% Growth and Income Stock ________% __100___% __100___% 4. TERMINATION OF DOLLAR COST AVERAGING: / / IMMEDIATELY / / NEXT POLICY ANNIVERSARY 5. SPECIAL INSTRUCTIONS:___________________________________________________________________________________________ ___________________________________________________________________________________________________________________ 6. EFFECTIVE DATE: This asset transfer and/or allocation of future investments shall be effective on _________________ (insert specific future date if desired). If no date is specified, or if this form is not received at NML's Home Office (see address on reverse side) on or prior to 3:00 p.m. Central time on that date, this transfer shall be effective on the date this form is received (complete and signed) at NML's Home Office. 7. SIGNATURE OF OWNER(S)/TRUSTEE REQUIRED (TITLE MUST BE INCLUDED): _________________________________________________________________________ Date signed ____________________ _________________________________________________________________________ Date signed ____________________
79 ADDITIONAL INFORMATION 1. REDISTRIBUTION OF EXISTING ASSETS: The Owner may transfer the assets invested for this policy to any of the Divisions, as long as these assets, following the transfer, are allocated among not more than six Divisions. Transfers may be made as often as twelve times in a policy year. 2. ALLOCATION OF FUTURE PREMIUM/DIVIDENDS: Allocation of the first net annual premium will be allocated to the Money Market Division until the Initial Allocation Date. On the Initial Allocation Date, amounts in the Money Market Division will be allocated in accordance with the application. 3. DOLLAR COST AVERAGING (DCA): If DCA is chosen, Money Market must be one of the Divisions elected for future premium/dividend allocation. A total of six Divisions may be elected between current and future assets and DCA. 4. TERMINATION OF DOLLAR COST AVERAGING (DCA): Any assets still in the Money Market Division will remain, unless you elect to transfer them. HOW TO SUBMIT THIS FORM FIRST CLASS MAIL Please mail form to Northwestern Mutual Life, 720 E. Wisconsin, WI 53202, Attention POS FAX The properly completed and signed form may be FAXed to the Home Office at the numbers provided. Fax telephone numbers listed by POS Regions are: East 414-299-4268 Central 414-299-4982 West 414-299-4268 South 414-299-3382 EPS 414-299-5123 The original form is NOT needed. Please keep for your records. LINK NML Agents only: If timing is critical and FAX equipment is unavailable, this request may be LINKed to the Home Office. You must have a properly completed and signed form in your possession. The original signed form MUST be received in the Home Office within five (5) working days from the date of the LINK. The transaction will take effect based on the time that the LINK is received in the Home Office. SIGNATURE INSTRUCTIONS SIGNATURE BY OWNER All Owners must sign their name as it appears in the policy contract. If the Owner's name has changed since the policy was issued, he/she should add his/her present surname to his/her name as it appears in the policy contract. SIGNATURE BY ASSIGNEE If the policy is assigned, the assignee must sign the form. See rules below if the assignee is a corporation, partnership, or trust. SIGNATURE ON BEHALF OF CORPORATION If the policyowner is a corporation, an officer of the corporation must sign on behalf of the corporation with his/her title. The name of the corporation must appear above the signature. SIGNATURE ON BEHALF OF PARTNERSHIP If the policyowner is a partnership, the name of the partnership must appear above the signature. A partner other than the Insured must sign. SIGNATURE ON BEHALF OF TRUST If the partnership is a trust, the authorized Trustee must sign his/her name, followed by the word "Trustee." The name of the trust must appear above the signature. -----END PRIVACY-ENHANCED MESSAGE-----