UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-5017

W&R Target Funds, Inc.

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

Registrant's telephone number, including area code: 913-236-2000

Date of fiscal year end: December 31

Date of reporting period: June 30, 2005

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report
June 30, 2005

Asset Strategy Portfolio

Balanced Portfolio

Bond Portfolio

Core Equity Portfolio

Dividend Income Portfolio

Global Natural Resources Portfolio

Growth Portfolio

High Income Portfolio

International Growth Portfolio

International Value Portfolio

Limited-Term Bond Portfolio

Micro Cap Growth Portfolio

Mid Cap Growth Portfolio

Money Market Portfolio

Mortgage Securities Portfolio

Real Estate Securities Portfolio

Science and Technology Portfolio

Small Cap Growth Portfolio

Small Cap Value Portfolio

Value Portfolio

CONTENTS

3		President's Letter
5		Illustration of Portfolio Expenses
10		Asset Strategy Portfolio
25		Balanced Portfolio
39		Bond Portfolio
53		Core Equity Portfolio
63		Dividend Income Portfolio
72		Global Natural Resources Portfolio
81		Growth Portfolio
90		High Income Portfolio
111		International Growth Portfolio
121		International Value Portfolio
131		Limited-Term Bond Portfolio
141		Micro Cap Growth Portfolio
150		Mid Cap Growth Portfolio
159		Money Market Portfolio
170		Mortgage Securities Portfolio
180		Real Estate Securities Portfolio
188		Science and Technology Portfolio
196		Small Cap Growth Portfolio
205		Small Cap Value Portfolio
216		Value Portfolio
226		Notes to Financial Statements
242		Shareholder Meeting Results
243		Investment Management Agreement Considerations
246		Proxy Voting Information
247		Quarterly Portfolio Schedule Information

President's Letter
June 30, 2005

Dear Shareholder:

Enclosed is our report on your Portfolio's operations for the six months ended June 30, 2005. The period enjoyed solid economic growth, although this performance was not manifest in the financial markets. We experienced subdued returns over the first half of 2005, as interest rates, energy prices and inflation worries restrained most major market indexes. The S&P 500 Index declined 0.81 percent, while the Dow Jones Industrial Average declined 3.65 percent over the period. Bonds fared a bit better, with the Citigroup Broad Investment Grade Index returning 2.61 percent over the last six months.

The Federal Reserve continued its campaign of steadily raising short-term interest rates. The Fed enacted four quarter-point rate increases between January and June, with rates ending the period at 3.25 percent. The Fed recently stated that it still believes monetary conditions remain "accommodative," indicating apparently that they intend to continue raising rates somewhat further.

Despite rising short-term interest rates and higher oil prices, the economy continues to do quite well. Real economic growth of around 3 percent for the remainder of the year, with a nominal growth rate (after inflation) of approximately 6 percent, seems likely, in our view. History suggests that corporate profits tend to grow in line with growth in the economy, and stocks generally follow the growth in profits. It now appears that S&P 500 profits could potentially rise in the area of 10 percent for all of 2005. Equities have been sluggish in the first six months of 2005, actually down slightly. We believe that some catch-up with profit growth appears probable.

Regardless of short-term setbacks brought on by economic or geopolitical events - and although past performance is no guarantee of future results - stocks have historically continued to rise over time. And, through appropriate diversification, you can potentially provide more balance to your portfolio over time.

Your financial advisor can help you with these strategies and work with you to develop and maintain a customized investment plan based on your individual situation. We believe that focusing on that plan, despite the swings of the market, is important as you work toward a sound financial future.

Thank you for your partnership and your continued commitment to your investment program.

Respectfully,

Henry J. Herrmann, CFA
President

The opinions expressed in this letter are those of the President of the W&R Target Funds, Inc., and are current only through the end of the period of the report, as stated on the cover. The President's views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.

Illustration of Portfolio Expenses

As a shareholder of a Portfolio, you incur ongoing costs, including management fees, distribution and service fees, and other Portfolio expenses. The following tables are intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended June 30, 2005.

Actual Expenses

The first line in the following tables provides information about actual investment values and actual expenses. You may use the information in this line, together with your initial investment in Portfolio shares, to estimate the expenses that you paid over the period. Simply divide the value of that investment by $1,000 (for example, a $7,500 initial investment divided by $1,000 = 7.5), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your investment during this period. In addition, there are fees and expenses imposed under the variable annuity or variable life insurance contract through which shares of the Portfolio are held. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second line of the following tables provides information about hypothetical investment values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical investment values and expenses may not be used to estimate the actual investment value at the end of the period or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs as a shareholder of the Portfolio and do not reflect any fees and expenses imposed under the variable annuity or variable life insurance contract through which shares of the Portfolio are held.

Asset Strategy Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,033		1.04	%	$	5.23
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		1.04	%	$	5.20

Balanced Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,007		1.02	%	$	5.07
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		1.02	%	$	5.10

Bond Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,020		0.86	%	$	4.32
Based on 5% Return ⁽²⁾	$	1,000	$	1,021		0.86	%	$	4.32

Core Equity Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,023		1.01	%	$	5.09
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		1.01	%	$	5.08

Dividend Income Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,030		0.69	%	$	3.47
Based on 5% Return ⁽²⁾	$	1,000	$	1,021		0.69	%	$	3.46

Global Natural Resources Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 4-28-05**		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,046		2.19	%	$	3.86
Based on 5% Return ⁽²⁾	$	1,000	$	1,005		2.19	%	$	3.78

Growth Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,013		1.00	%	$	4.99
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		1.00	%	$	5.01

High Income Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	998		0.96	%	$	4.77
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		0.96	%	$	4.82

International Growth Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	980		1.22	%	$	5.99
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.22	%	$	6.11

International Value Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,013		1.19	%	$	5.95
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.19	%	$	5.97

Limited-Term Bond Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,011		0.88	%	$	4.38
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		0.88	%	$	4.40

Micro Cap Growth Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,028		1.38	%	$	6.92
Based on 5% Return ⁽²⁾	$	1,000	$	1,018		1.38	%	$	6.88

Mid Cap Growth Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 4-28-05**		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,083		0.84	%	$	1.50
Based on 5% Return ⁽²⁾	$	1,000	$	1,007		0.84	%	$	1.45

Money Market Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,009		0.79	%	$	3.94
Based on 5% Return ⁽²⁾	$	1,000	$	1,021		0.79	%	$	3.96

Mortgage Securities Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,019		1.07	%	$	5.35
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.07	%	$	5.35

Real Estate Securities Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,052		1.47	%	$	7.46
Based on 5% Return ⁽²⁾	$	1,000	$	1,018		1.47	%	$	7.33

Science and Technology Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,039		1.18	%	$	5.95
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.18	%	$	5.90

Small Cap Growth Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,055		1.17	%	$	5.96
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.17	%	$	5.86

Small Cap Value Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,007		1.24	%	$	6.18
Based on 5% Return ⁽²⁾	$	1,000	$	1,019		1.24	%	$	6.22

Value Portfolio Expenses
For the Six Months Ended June 30, 2005	Beginning Investment Value 12-31-04		Ending Investment Value 6-30-05		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Portfolio Return ⁽¹⁾	$	1,000	$	1,016		1.02	%	$	5.12
Based on 5% Return ⁽²⁾	$	1,000	$	1,020		1.02	%	$	5.13

*Portfolio expenses are equal to the Portfolio's annualized expense ratio (provided in the table), multiplied by the average investment value over the period, multiplied by 181 days (63 days for Global Natural Resources Portfolio and Mid Cap Growth Portfolio) in the six-month period ended June 30, 2005, and divided by 365.

**The Portfolio commenced operations on April 28, 2005. The calculations are based on 63 days in the period ended June 30, 2005.

(1)This line uses the Portfolio's actual total return and actual Portfolio expenses. It is a guide to the actual expenses paid by the Portfolio in the period. The "Ending Investment Value" shown is computed using the Portfolio's actual return and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Portfolio. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the fourth column.

(2)This line uses a hypothetical 5% return and actual Portfolio expenses. It helps to compare the Portfolio's ongoing costs with other mutual funds. A shareholder can compare the Portfolio's ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The above illustration is based on ongoing costs only.

SHAREHOLDER SUMMARY OF ASSET STRATEGY PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Asset Strategy Portfolio had net assets totaling $316,327,310 invested in a diversified portfolio of:

79.40%		Common Stocks
6.40%		Bullion
4.87%		Corporate Debt Securities
3.49%		Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts
3.46%		Other Government Securities
2.38%		U.S. Government and Government Agency Obligations

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Common Stocks	$	79.40
Bullion	$	6.40
Corporate Debt Securities	$	4.87
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts	$	3.49
Other Government Securities	$	3.46
U.S. Government and Government Agency Obligations	$	2.38

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Raw Materials Stocks	$	19.34
Energy Stocks	$	13.47
Multi-Industry Stocks	$	9.07
Capital Goods Stocks	$	7.59
Bullion	$	6.40
Financial Services Stocks	$	6.36
Technology Stocks	$	5.54
Consumer Nondurables Stocks	$	5.02
Corporate Debt Securities	$	4.87
Miscellaneous Stocks	$	3.50
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts	$	3.49
Other Government Securities	$	3.46
Business Equipment and Services Stocks	$	3.08
Consumer Durables Stocks	$	2.41
U.S. Government and Government Agency Obligations	$	2.38
Health Care Stocks	$	2.01
Utilities Stocks	$	2.01


The Investments of Asset Strategy Portfolio
June 30, 2005			(Unaudited)
BULLION - 6.40%		Troy Ounces			Value


Gold		46,514		$	20,254,427
(Cost: $18,341,890)


COMMON STOCKS		Shares


Aircraft - 2.60%
BAE SYSTEMS plc (A)		608,180			3,127,370
Boeing Company (The)		37,600			2,481,600
United Technologies Corporation		50,600			2,598,310
					8,207,280
Aluminum - 0.79%
Aluminum Corporation of China Limited, H Shares (A)	4,508,000				2,508,956

Banks - 1.38%
Citigroup Inc.		67,250			3,108,967
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		146			1,238,716
					4,347,683
Business Equipment and Services - 3.08%
Dentsu Inc. (A)*		505			1,247,588
Headwaters Incorporated*		111,950			3,848,841
Jacobs Engineering Group Inc.*		38,000			2,137,880
Mitsubishi Corporation (A)		138,200			1,879,051
Pacific Basin Shipping Limited (A)	1,326,000				631,347
					9,744,707
Capital Equipment - 3.16%
Caterpillar Inc.		52,050			4,960,886
Chicago Bridge & Iron Company N.V., NY Shares		65,796			1,504,097
Deere & Company		34,341			2,248,992
SMC Corporation (A)		11,800			1,287,350
					10,001,325
Chemicals - Petroleum and Inorganic - 1.49%
LG Chem, Ltd. (A)		41,080			1,501,038
Yara International ASA (A)		201,200			3,202,106
					4,703,144
Chemicals - Specialty - 0.51%
Scotts Miracle-Gro Company (The)*		22,700			1,616,467


Coal - 1.99%
Foundation Coal Holdings, Inc.		59,700		1,548,618
Peabody Energy Corporation		91,400		4,756,456
				6,305,074
Computers - Micro - 0.46%
Dell Inc.*		36,950		1,457,493

Construction Materials - 2.91%
CRH public limited company (A)		70,940		1,868,131
Cemex, S.A. de C.V., ADR		172,613		7,322,243
				9,190,374
Electronic Components - 1.97%
Samsung Electronics Co., Ltd. (A)		13,030		6,222,156

Electronic Instruments - 0.51%
Nihon Densan Kabushiki Kaisha (A)		15,300		1,619,529

Finance Companies - 2.14%
Rio Tinto plc (A)		220,870		6,759,116

Food and Related - 4.27%
Archer Daniels Midland Company		274,300		5,864,534
Bunge Limited		92,173		5,843,768
J.M. Smucker Company (The)		38,150		1,790,761
				13,499,063
Forest and Paper Products - 0.55%
Aracruz Celulose S.A., ADR		49,600		1,723,600

Gold and Precious Metals - 5.30%
Agnico-Eagle Mines Limited		149,500		1,883,700
Barrick Gold Corporation		335,050		8,386,302
Placer Dome Inc.		204,650		3,147,517
Yanzhou Coal Mining Company Limited, Class H (A)	4,269,200			3,351,193
				16,768,712
Health Care - Drugs - 0.57%
Gilead Sciences, Inc.*		40,950		1,801,595

Health Care - General - 0.48%
Schein (Henry), Inc.*		36,900		1,533,749

Hospital Supply and Management - 0.96%
Cerner Corporation*		23,600		1,604,210
Stryker Corporation		30,200		1,436,312
				3,040,522
Household - General Products - 0.75%
Colgate-Palmolive Company		47,700		2,380,707

Mining - 11.25%
Alumina Limited (A)		561,390		2,380,228
BHP Billiton Plc (A)		523,100		7,227,035
Cameco Corporation (A)		38,100		1,699,449
Freeport-McMoRan Copper & Gold Inc., Class B		85,686		3,208,084
Inco Limited		108,450		4,093,988
Newmont Mining Corporation		195,500		7,630,365
Noranda Inc. (A)		155,850		2,673,822
Phelps Dodge Corporation		40,300		3,727,750
Southern Peru Copper Corporation		68,950		2,953,818
				35,594,539
Motor Vehicles - 2.41%
Toyota Motor Corporation (A)		213,200		7,631,449

Multiple Industry - 9.07%
Alpha Natural Resources, Inc.*		106,299		2,538,420
Bucyrus International, Inc., Class A		45,950		1,742,883
Companhia Vale do Rio Doce, ADR		314,250		9,201,240
General Electric Company		201,890		6,995,489
Hutchison Whampoa Limited, Ordinary Shares (A)		565,000		5,107,612
Smiths Group plc (A)		189,000		3,112,022
				28,697,666
Non-Residential Construction - 1.52%
Fluor Corporation		42,265		2,434,041
Hyundai Heavy Industries Co., Ltd. (A)*		47,200		2,372,547
				4,806,588
Petroleum - International - 7.53%
Anadarko Petroleum Corporation		75,623		6,212,429
BP p.l.c., ADR		92,050		5,742,079
Burlington Resources Inc.		78,670		4,345,731
Exxon Mobil Corporation		130,841		7,519,432
				23,819,671
Petroleum - Services - 3.95%
Baker Hughes Incorporated		59,400		3,038,904
Schlumberger Limited		76,550		5,813,207
Transocean Inc.*		67,400		3,637,578
				12,489,689
Railroad - 0.56%
Norfolk Southern Corporation		56,750		1,756,980

Real Estate Investment Trust - 0.47%
Keppel Land Limited (A)	1,008,000			1,494,219

Retail - Food Stores - 1.92%
CVS Corporation		104,150		3,027,640
Walgreen Co.		66,497		3,058,197
				6,085,837
Security and Commodity Brokers - 2.84%
Chicago Mercantile Exchange Holdings Inc.		14,813		4,377,241
Franklin Resources, Inc.		19,900		1,531,902
Legg Mason, Inc.		29,600		3,081,656
				8,990,799
Utilities - Electric - 1.48%
Southern Company		86,900		3,012,823
Veolia Environment (A)		44,550		1,675,121
				4,687,944
Utilities - Telephone - 0.53%
China Mobile (Hong Kong) Limited (A)		447,500		1,667,112

TOTAL COMMON STOCKS - 79.40%			$	251,153,745

(Cost: $207,309,198)


CORPORATE DEBT SECURITIES	Principal Amount in Thousands


Aircraft - 0.04%
Raytheon Company,
6.5%, 7-15-05	$	135	135,092

Beverages - 0.19%
Companhia Brasileira de Bebidas,
10.5%, 12-15-11		500	617,500

Capital Equipment - 0.35%
Hyundai Motor Company,
5.3%, 12-19-08 (B)		1,080	1,092,345


Computers - Peripherals - 0.18%
ASG Consolidated LLC and ASG Finance, Inc.,
0.0%, 11-1-11 (C)			800		574,000

Construction Materials - 0.73%
Hanson Overseas B.V.,
6.75%, 9-15-05			650		653,631
Interface, Inc.:
7.3%, 4-1-08			520		530,400
9.5%, 2-1-14			550		561,000
Ply Gem Industries, Inc.,
9.0%, 2-15-12			650		549,250
					2,294,281
Finance Companies - 0.86%
ALROSA Finance S.A.,
8.125%, 5-6-08			900		961,650
Exxon Capital Corporation,
6.0%, 7-1-05			750		750,000
Toyota Motor Credit Corporation,
5.01%, 1-18-15			1,050		1,016,988
					2,728,638
Food and Related - 0.16%
Sara Lee Corporation,
6.45%, 9-26-05			500		502,247

Mining - 0.56%
Vedanta Resources plc,
6.625%, 2-22-10 (B)			1,800		1,776,154

Multiple Industry - 0.40%
National Rural Utilities Cooperative Finance Corporation,
3.0%, 2-15-06			750		746,564
Sino-Forest Corporation,
9.125%, 8-17-11 (B)			475		518,937
					1,265,501
Security and Commodity Brokers - 0.19%
SLM Corporation,
4.0%, 7-25-14			600		594,378

Utilities - Electric - 0.47%
Dominion Resources, Inc.,
7.625%, 7-15-05			750		750,674
Wisconsin Energy Corporation,
5.875%, 4-1-06			227		230,099
Wisconsin Power and Light Company,
7.6%, 7-1-05			500		500,000
					1,480,773
Utilities - Gas and Pipeline - 0.24%
Wisconsin Gas Company,
6.375%, 11-1-05			750		756,150

Utilities - Telephone - 0.50%
Open Joint Stock Company ''Vimpel-Communications'',
10.0%, 6-16-09 (B)			1,000		1,075,000
Verizon Global Funding Corp. and Verizon Communications Inc.,
6.75%, 12-1-05			500		505,761
					1,580,761

TOTAL CORPORATE DEBT SECURITIES - 4.87%				$	15,397,820

(Cost: $15,163,036)


OTHER GOVERNMENT SECURITIES


Japan - 2.28%
Japanese Government 15 Year Floating Rate Bond,
0.64%, 1-20-18 (D)	JPY775,000				7,204,265

South Korea - 0.31%
Korea Development Bank (The),
3.49%, 10-29-06		$	1,000		987,140

United Kingdom - 0.87%
United Kingdom Treasury,
4.75%, 6-7-10 (D)	GBP1,500				2,772,227

TOTAL OTHER GOVERNMENT SECURITIES - 3.46%				$	10,963,632

(Cost: $10,992,049)


UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Agency REMIC/CMO (Interest Only):
5.0%, 4-15-19	$	736		102,973
5.0%, 4-15-19		1,533		211,723
5.0%, 2-15-20		2,325		175,408
5.0%, 7-15-21		1,210		146,544
5.0%, 6-15-22		2,559		163,627
5.0%, 7-15-22		9,058		623,656
5.0%, 1-15-23		1,798		130,232
5.0%, 4-15-23		757		86,946
5.0%, 5-15-23		1,235		196,847
5.0%, 8-15-23		919		162,697
5.5%, 11-15-23		3,800		473,952
5.5%, 11-15-23		2,452		266,298
5.0%, 9-15-24		2,534		259,685
5.5%, 9-15-24		1,477		139,180
5.5%, 4-15-25		635		65,693
5.5%, 4-15-25		298		43,855
5.0%, 9-15-25		3,238		384,180
5.0%, 8-15-30		1,794		241,652
5.5%, 3-15-31		1,195		170,618
Federal National Mortgage Association Agency REMIC/CMO (Interest Only):
5.5%, 11-25-17		1,618		174,009
5.0%, 5-25-22		1,071		160,412
5.5%, 9-25-25		914		106,538
5.5%, 11-25-25		3,409		320,058
Government National Mortgage Association Agency REMIC/CMO (Interest Only):
5.0%, 7-20-33		705		131,372
5.5%, 11-20-33		2,548		453,518
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
5.5%, 11-15-16		394		407,039
5.5%, 11-15-16		114		117,379
5.5%, 12-15-16		1,262		1,303,453
5.5%, 12-15-16		301		311,328

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 2.38%			$	7,530,872

(Cost: $7,387,616)



UNREALIZED GAIN ON OPEN FORWARD CURRENCY CONTRACTS - 0.03%		Face Amount in Thousands

British Pound, 3-8-06 (D)	GBP3,230				77,461
Euro, 6-8-06 (D)	EUR750				10,296
				$	87,757

SHORT-TERM SECURITIES		Principal Amount in Thousands


Capital Equipment - 1.26%
Caterpillar Inc.,
3.25%, 7-8-05		$	4,000		3,997,472

Food and Related - 1.26%
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
3.33%, 7-13-05			4,000		3,995,560

Household - General Products - 1.24%
Procter & Gamble Company (The),
3.37%, 7-1-05			3,909		3,909,000

Publishing - 0.95%
Tribune Co.,
3.3%, 7-11-05			3,000		2,997,250

TOTAL SHORT-TERM SECURITIES - 4.71%				$	14,899,282

(Cost: $14,899,282)

TOTAL INVESTMENT SECURITIES - 101.25%				$	320,287,535

(Cost: $274,093,071)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.25%)					(3,960,225	)


NET ASSETS - 100.00%				$	316,327,310


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Listed on an exchange outside the United States.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $4,462,436 or 1.41% of net assets.
(C)The security does not bear interest for an initial period of time and subsequently becomes interest bearing.
(D)Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro, GBP - British Pound, JPY - Japanese Yen).
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      ASSET STRATEGY PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investments - at value (Notes 1 and 3):
Bullion (cost - $18,342)	$	20,254
Securities (cost - $255,751)		300,034

		320,288
Cash		2
Receivables:
Dividends and interest		927
Portfolio shares sold		202
Swap premiums paid		31
Prepaid and other assets		4

Total assets		321,454

LIABILITIES
Payable for investment securities purchased		5,003
Swap premiums received		29
Accrued accounting services fee (Note 2)		8
Accrued management fee (Note 2)		6
Accrued shareholder servicing (Note 2)		3
Accrued service fee (Note 2)		2
Payable to Portfolio shareholders		2
Other		74

Total liabilities		5,127

Total net assets	$	316,327

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	40
Additional paid-in capital		263,590
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		2,129
Accumulated undistributed net realized gain on investment transactions		4,484
Net unrealized appreciation in value of securities		46,107
Net unrealized depreciation in value of swaps		(115	)
Net unrealized appreciation in value of forward currency contracts		88
Net unrealized appreciation in value of foreign currency exchange		4

Net assets applicable to outstanding units of capital	$	316,327

Net asset value, redemption and offering price per share	$	7.9462

Capital shares outstanding		39,809
Capital shares authorized		80,000

See Notes to Financial Statements.

Statement of Operations
      ASSET STRATEGY PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $185)	$	2,825
Interest and amortization		853

Total income		3,678

Expenses (Note 2):
Investment management fee		1,029
Service fee		368
Accounting services fee		46
Custodian fees		30
Audit fees		9
Shareholder servicing		5
Legal fees		3
Other		36

Total expenses		1,526

Net investment income		2,152

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		4,405
Realized net gain on purchased options		347
Realized net loss on written options	(1,546		)
Realized net loss on swap agreements		(35	)
Realized net loss on foreign currency transactions		(23	)

Realized net gain on investments		3,148

Unrealized appreciation in value of securities during the period		3,471
Unrealized appreciation in value of forward currency contracts during the period		1,101
Unrealized depreciation in value of swaps during the period		(115	)

Unrealized appreciation in value of investments during the period		4,457

Net gain on investments		7,605

Net increase in net assets resulting from operations	$	9,757

See Notes to Financial Statements.

Statement of Changes in Net Assets
      ASSET STRATEGY PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income		$	2,152		$	2,493
Realized net gain on investments			3,148			3,673
Unrealized appreciation			4,457			26,567

Net increase in net assets resulting from operations			9,757			32,733

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(3,562	)
Realized gains on investment transactions			(-	)		(1,900	)

			(-	)		(5,462	)

Capital share transactions ⁽²⁾			24,204			28,150

Total increase			33,961			55,421
NET ASSETS
Beginning of period			282,366			226,945

End of period		$	316,327		$	282,366

Undistributed net investment income		$	2,129		$	- -	*


(1)See "Financial Highlights" on page 24.

(2)Shares issued from sale of shares			4,124			5,516
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			710
Shares redeemed			(1,021	)		(2,298	)

Increase in outstanding capital shares			3,103			3,928

Value issued from sale of shares		$	32,151		$	38,917
Value issued from reinvestment of dividend and/or capital gains distribution			- -			5,462
Value redeemed			(7,947	)		(16,229	)

Increase in outstanding capital		$	24,204		$	28,150

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      ASSET STRATEGY PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	7.6926		$	6.9237		$	6.3078		$	6.2046		$	7.0540		$	6.2625

Income (loss) from investment operations:
Net investment income			0.0541			0.0699			0.0769			0.1005			0.1323			0.0908
Net realized and unrealized gain (loss) on investments			0.1995			0.8508			0.6469			0.1032		(0.8354		)		1.3211

Total from investment operations			0.2536			0.9207			0.7238			0.2037		(0.7031		)		1.4119

Less distributions from:
Net investment income		(0.0000		)	(0.0990		)	(0.0769		)	(0.1005		)	(0.1334		)	(0.0906		)
Capital gains		(0.0000		)	(0.0528		)	(0.0310		)	(0.0000		)	(0.0129		)	(0.5298		)

Total distributions		(0.0000		)	(0.1518		)	(0.1079		)	(0.1005		)	(0.1463		)	(0.6204		)

Net asset value, end of period		$	7.9462		$	7.6926		$	6.9237		$	6.3078		$	6.2046		$	7.0540

Total return			3.30	%		13.30	%		11.47	%		3.28	%		- -9.96	%		22.53	%
Net assets, end of period (in millions)			$316			$282			$227			$167			$115			$59
Ratio of expenses to average net assets			1.04	% ⁽¹⁾		1.06	%		1.03	%		1.04	%		1.03	%		0.97	%
Ratio of net investment income to average net assets			1.46	% ⁽¹⁾		1.02	%		1.27	%		1.90	%		2.63	%		1.97	%
Portfolio turnover rate			36	%		118	%		224	%		95	%		188	%		155	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF BALANCED PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Balanced Portfolio had net assets totaling $597,643,181 invested in a diversified portfolio of:

73.76%		Common Stocks
13.15%		U.S. Government and Government Agency Obligations
6.79%		Corporate Debt Securities
5.99%		Cash and Cash Equivalents
0.31%		Other Government Security

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Common Stocks	$	73.76
U.S. Government and Government Agency Obligations	$	13.15
Corporate Debt Securities	$	6.79
Cash and Cash Equivalents	$	5.99
Other Government Security	$	0.31

Technology Stocks	$	13.38
U.S. Government and Government Agency Obligations	$	13.15
Financial Services Stocks	$	12.94
Health Care Stocks	$	12.02
Energy Stocks	$	6.91
Corporate Debt Securities	$	6.79
Cash and Cash Equivalents	$	5.99
Utilities Stocks	$	5.53
Miscellaneous Stocks	$	5.46
Consumer Nondurables Stocks	$	4.65
Retail Stocks	$	4.51
Consumer Services Stocks	$	4.18
Business Equipment and Services Stocks	$	2.10
Multi-Industry Stocks	$	2.08
Other Government Security	$	0.31


The Investments of Balanced Portfolio
June 30, 2005				(Unaudited)
COMMON STOCKS		Shares		Value


Aircraft - 0.96%
Boeing Company (The)		86,800	$	5,728,800

Banks - 3.25%
Citigroup Inc.		254,600		11,770,158
Northern Trust Corporation		168,400		7,668,094
				19,438,252
Beverages - 0.96%
Anheuser-Busch Companies, Inc.		29,000		1,326,750
Brown-Forman Corporation, Class B		73,400		4,437,764
				5,764,514
Business Equipment and Services - 1.31%
Cintas Corporation		203,300		7,852,463

Capital Equipment - 1.04%
Ingersoll-Rand Company Limited, Class A		87,000		6,207,450

Chemicals - Petroleum and Inorganic - 0.80%
Dow Chemical Company (The)		106,800		4,755,804

Chemicals - Specialty - 0.93%
Air Products and Chemicals, Inc.		92,200		5,559,660

Computers - Micro - 2.84%
Apple Computer, Inc.*		109,800		4,037,895
Dell Inc.*		216,657		8,546,035
Sun Microsystems, Inc.*	1,188,000			4,401,540
				16,985,470
Computers - Peripherals - 6.21%
Check Point Software Technologies Ltd.*		251,200		4,982,552
EMC Corporation*		512,900		7,031,859
Microsoft Corporation		457,800		11,364,885
Oracle Corporation*		508,500		6,714,743
Symantec Corporation*		322,200		7,006,239
				37,100,278
Defense - 1.21%
General Dynamics Corporation		66,100		7,240,594

Electrical Equipment - 0.87%
Emerson Electric Co.		81,200		5,085,556
Molex Incorporated, Class A		4,472		104,846
				5,190,402
Electronic Components - 1.26%
Intel Corporation		290,000		7,547,250

Electronic Instruments - 0.90%
Lam Research Corporation*		185,450		5,365,996

Finance Companies - 2.59%
Fannie Mae		87,500		5,110,000
SLM Corporation		204,100		10,368,280
				15,478,280
Food and Related - 2.23%
Campbell Soup Company		228,400		7,027,868
Dean Foods Company*		178,200		6,279,768
				13,307,636
Furniture and Furnishings - 0.92%
Masco Corporation		173,400		5,507,184

Health Care - Drugs - 5.25%
Abbott Laboratories		133,600		6,547,736
Allergan, Inc.		80,500		6,861,820
Amgen Inc.*		95,500		5,773,452
Novartis AG, ADR		97,300		4,615,912
Pfizer Inc.		274,307		7,565,387
				31,364,307
Health Care - General - 3.42%
Biomet, Inc.		167,100		5,785,837
Boston Scientific Corporation*		150,100		4,052,700
Johnson & Johnson		163,300		10,614,500
				20,453,037
Hospital Supply and Management - 3.35%
HCA Inc.		112,700		6,386,709
Medtronic, Inc.		132,700		6,872,533
UnitedHealth Group Incorporated		130,200		6,788,628
				20,047,870
Household - General Products - 1.45%
Colgate-Palmolive Company		173,100		8,639,421

Insurance - Life - 1.22%
Lincoln National Corporation		155,600		7,300,752

Insurance - Property and Casualty - 3.59%
Allstate Corporation (The)		135,300		8,084,175
Berkshire Hathaway Inc., Class B*		2,300		6,402,050
Chubb Corporation (The)		81,200		6,951,532
				21,437,757
Leisure Time Industry - 2.31%
Royal Caribbean Cruises Ltd.		150,000		7,254,000
Walt Disney Company (The)		259,100		6,524,138
				13,778,138
Motion Pictures - 1.88%
News Corporation Limited, Class A		402,700		6,515,686
News Corporation Limited, Class B		280,000		4,720,800
				11,236,486
Multiple Industry - 2.08%
General Electric Company		328,756		11,391,395
TreeHouse Foods, Inc.*		35,640		1,016,096
				12,407,491
Petroleum - International - 4.50%
BP p.l.c., ADR		115,500		7,204,890
Burlington Resources Inc.		81,500		4,502,060
ChevronTexaco Corporation		83,000		4,641,360
Exxon Mobil Corporation		184,046		10,577,124
				26,925,434
Petroleum - Services - 2.41%
Nabors Industries Ltd.*		74,900		4,540,438
Schlumberger Limited		129,600		9,841,824
				14,382,262
Retail - Food Stores - 1.10%
Walgreen Co.		142,600		6,558,174

Retail - General Merchandise - 3.41%
Federated Department Stores, Inc.		71,100		5,210,208
Target Corporation		133,600		7,269,176
Wal-Mart Stores, Inc.		164,200		7,914,440
				20,393,824
Security and Commodity Brokers - 2.29%
American Express Company		110,300		5,871,269
Chicago Mercantile Exchange Holdings Inc.		26,500		7,830,750
				13,702,019
Timesharing and Software - 0.79%
Paychex, Inc.		145,200		4,721,178

Trucking and Shipping - 0.90%
Expeditors International of Washington, Inc.		107,700		5,363,999

Utilities - Electric - 3.83%
Dominion Resources, Inc.		109,200		8,014,188
Exelon Corporation		221,800		11,384,994
PPL Corporation		58,900		3,497,482
				22,896,664
Utilities - Telephone - 1.70%
AT&T Corp.		182,000		3,465,280
Vodafone Group Plc, ADR		276,600		6,726,912
				10,192,192

TOTAL COMMON STOCKS - 73.76%			$	440,831,038

(Cost: $374,762,748)


CORPORATE DEBT SECURITIES	Principal Amount in Thousands


Air Transportation - 0.07%
Southwest Airlines Co.,
7.875%, 9-1-07	$	360	385,193

Aircraft - 0.11%
Raytheon Company,
6.5%, 7-15-05		675	675,458

Banks - 0.24%
Wells Fargo Bank, N.A.,
7.55%, 6-21-10		1,250	1,434,271


Beverages - 0.29%
Coca-Cola Enterprises Inc.,
6.7%, 10-15-36	500		603,661
Diageo Capital plc,
3.5%, 11-19-07	1,150		1,134,454
			1,738,115
Business Equipment and Services - 0.19%
PHH Corporation,
7.125%, 3-1-13	1,000		1,109,250

Chemicals - Specialty - 0.18%
Vulcan Materials Company,
6.4%, 2-1-06	1,050		1,061,870

Finance Companies - 1.82%
277 Park Avenue Finance Corporation,
7.58%, 5-12-12 (A)	2,648		2,764,626
American International Group,
3.85%, 11-26-07 (A)	1,400		1,383,113
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)	16		413
8.0%, 3-31-11 (A)	1,231		184,724
First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust,
6.56%, 11-18-35	996		1,048,628
First Union-Lehman Brothers Company,
6.65%, 11-18-29	879		919,341
General Motors Acceptance Corporation,
6.125%, 8-28-07	1,200		1,187,662
Mellon Residential Funding,
6.75%, 6-26-28	195		194,879
Prudential Insurance Company of America,
6.6%, 5-15-08 (A)	1,500		1,599,255
Unilever Capital Corporation,
5.9%, 11-15-32	1,450		1,615,619
			10,898,260
Food and Related - 0.28%
Archer-Daniels-Midland Company,
7.0%, 2-1-31	1,350		1,698,219

Insurance - Life - 0.25%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12	1,375		1,515,388

Insurance - Property and Casualty - 0.28%
Principal Life Global,
6.25%, 2-15-12 (A)	1,500		1,654,713

Leisure Time Industry - 0.17%
Cendant Corporation,
6.875%, 8-15-06	1,000		1,028,068

Multiple Industry - 2.06%
Cargill, Inc.,
6.375%, 6-1-12 (A)	1,150		1,281,279
General Electric Capital Corporation,
2.85%, 1-30-06	6,000		5,969,880
Georgia Power Company,
5.5%, 12-1-05	2,500		2,517,260
Household Finance Corporation,
6.5%, 1-24-06	2,500		2,536,147
			12,304,566
Real Estate Investment Trust - 0.30%
Vornado Realty L.P.,
5.625%, 6-15-07	1,750		1,783,712

Utilities - Electric - 0.55%
Dominion Resources, Inc.,
7.625%, 7-15-05	3,300		3,302,967

TOTAL CORPORATE DEBT SECURITIES - 6.79%		$	40,590,050

(Cost: $39,883,428)


OTHER GOVERNMENT SECURITY - 0.31%


Canada
Hydro-Quebec,
8.0%, 2-1-13	1,500		1,849,394
(Cost: $1,674,807)


UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Agency Obligations - 0.19%
Federal National Mortgage Association,
7.25%, 1-15-10	1,000		1,133,941

Mortgage-Backed Obligations - 3.98%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.23%, 1-1-08	1,617		1,673,791
6.0%, 9-1-17	846		877,188
5.0%, 1-1-18	665		672,899
5.5%, 4-1-18	389		399,380
5.0%, 5-1-18	329		333,066
4.5%, 7-1-18	3,984		3,968,479
7.0%, 9-1-25	91		96,708
6.5%, 10-1-28	507		530,294
6.5%, 2-1-29	426		446,303
7.5%, 4-1-31	271		292,267
7.0%, 7-1-31	530		564,040
7.0%, 9-1-31	488		516,635
7.0%, 9-1-31	399		424,789
7.0%, 11-1-31	117		123,447
6.5%, 2-1-32	1,656		1,724,295
7.0%, 2-1-32	674		713,945
7.0%, 2-1-32	585		619,948
7.0%, 3-1-32	384		407,440
7.0%, 7-1-32	959		1,016,284
6.0%, 9-1-32	3,046		3,124,969
6.0%, 2-1-33	820		840,957
5.5%, 5-1-33	2,238		2,270,251
5.5%, 5-1-33	647		656,098
5.5%, 6-1-33	1,073		1,088,493
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.0%, 8-15-28	56		58,207
6.5%, 8-15-28	122		127,618
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1997-A Class 3-A,
8.293%, 12-15-26	225		235,850
			23,803,641
Treasury Inflation Protected Obligation - 0.20%
United States Treasury Note,
3.0%, 7-15-12 (B)	1,000		$1,188,765

Treasury Obligations - 8.78%
United States Treasury Bonds:
7.5%, 11-15-16	1,500		1,965,996
7.25%, 8-15-22	4,000		5,443,124
6.25%, 8-15-23	5,250		6,542,608
United States Treasury Notes:
6.5%, 8-15-05	4,000		4,016,248
3.25%, 8-15-07	5,000		4,959,570
3.0%, 11-15-07	4,000		3,941,876
3.0%, 2-15-08	3,000		2,951,367
2.625%, 5-15-08	4,000		3,887,032
4.75%, 11-15-08	4,000		4,132,500
4.0%, 3-15-10	3,200		3,234,874
3.875%, 2-15-13	3,000		3,003,633
3.625%, 5-15-13	3,000		2,961,798
4.25%, 8-15-13	4,000		4,100,000
5.25%, 2-15-29	1,150		1,315,268
			52,455,894

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 13.15%		$	78,582,241

(Cost: $76,415,847)


SHORT-TERM SECURITIES


Capital Equipment - 0.84%
Caterpillar Inc.,
3.25%, 7-8-05	5,000		4,996,840

Finance Companies - 3.13%
Ciesco, LLC,
3.26%, 7-22-05	5,000		4,990,492
IBM Capital Inc. (International Business Machines Corporation),
3.27%, 7-25-05	3,000		2,993,460
River Fuel Trust #1 (Bank of New York (The)),
3.27%, 7-18-05	4,757		4,749,654
USAA Capital Corp.,
3.15%, 7-6-05	6,000		5,997,375
			18,730,981

Food and Related - 0.84%
Wm. Wrigley Jr. Company,
3.19%, 7-14-05	5,000		4,994,240

Household - General Products - 0.66%
Procter & Gamble Company (The),
3.37%, 7-1-05	3,928		3,928,000

Multiple Industry - 0.67%
Detroit Edison Co.,
3.34%, 7-1-05	4,000		4,000,000

Publishing - 0.33%
Tribune Co.,
3.3%, 7-11-05	2,000		1,998,167

TOTAL SHORT-TERM SECURITIES - 6.47%		$	38,648,228

(Cost: $38,648,228)

TOTAL INVESTMENT SECURITIES - 100.48%		$	600,500,951

(Cost: $531,385,058)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.48%)			(2,857,770	)


NET ASSETS - 100.00%		$	597,643,181


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $8,868,123 or 1.48% of net assets.
(B)The interest rate for this security is a stated rate, but the interest payments are determined by multiplying the inflation-adjusted principal by one half of the stated rate for each seminannual interest payment date.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      BALANCED PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $531,385) (Notes 1 and 3)	$	600,501
Cash		1
Receivables:
Dividends and interest		1,972
Portfolio shares sold		268
Prepaid and other assets		10

Total assets		602,752

LIABILITIES
Payable for investment securities purchased		4,792
Payable to Portfolio shareholders		255
Accrued accounting services fee (Note 2)		13
Accrued management fee (Note 2)		12
Accrued shareholder servicing (Note 2)		5
Accrued service fee (Note 2)		4
Other		28

Total liabilities		5,109

Total net assets	$	597,643

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	77
Additional paid-in capital		586,177
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		3,560
Accumulated undistributed net realized loss on investment transactions		(61,287	)
Net unrealized appreciation in value of investments		69,116

Net assets applicable to outstanding units of capital	$	597,643

Net asset value, redemption and offering price per share	$	7.7322

Capital shares outstanding		77,293
Capital shares authorized		180,000

See Notes to Financial Statements.

Statement of Operations
      BALANCED PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	3,355
Dividends (net of foreign withholding taxes of $8)		3,270

Total income		6,625

Expenses (Note 2):
Investment management fee		2,107
Service fee		753
Accounting services fee		78
Audit fees		16
Custodian fees		14
Legal fees		8
Shareholder servicing		8
Other		81

Total expenses		3,065

Net investment income		3,560

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		26,932
Unrealized depreciation in value of investments during the period	(26,576		)

Net gain on investments		356

Net increase in net assets resulting from operations	$	3,916

See Notes to Financial Statements.

Statement of Changes in Net Assets
      BALANCED PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	3,560		$	8,830
Realized net gain on investments			26,932			19,423
Unrealized appreciation (depreciation)			(26,576	)		24,058

Net increase in net assets resulting from operations			3,916			52,311

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(8,830	)
Realized gains on investment transactions			(-	)		(-	)

			(-	)		(8,830	)

Capital share transactions ⁽²⁾			(34,035	)		(30,525	)

Total increase (decrease)			(30,119	)		12,956
NET ASSETS
Beginning of period			627,762			614,806

End of period		$	597,643		$	627,762

Undistributed net investment income (loss)		$	3,560		$	(-	)*


(1)See "Financial Highlights" on page 38.

(2)Shares issued from sale of shares			1,561			5,882
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			1,150
Shares redeemed			(6,026	)		(11,271	)

Decrease in outstanding capital shares			(4,465	)		(4,239	)

Value issued from sale of shares		$	11,905		$	42,641
Value issued from reinvestment of dividend and/or capital gains distribution			- -			8,830
Value redeemed			(45,940	)		(81,996	)

Decrease in outstanding capital		$	(34,035	)	$	(30,525	)

*Not shown due to rounding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
      BALANCED PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	7.6783		$	7.1491		$	6.0423		$	6.7224		$	7.3258		$	7.3120

Income (loss) from investment operations:
Net investment income			0.0461			0.1096			0.0467			0.1145			0.1593			0.1873
Net realized and unrealized gain (loss) on investments			0.0078			0.5292			1.1068		(0.6801		)	(0.5955		)		0.3361

Total from investment operations			0.0539			0.6388			1.1535		(0.5656		)	(0.4362		)		0.5234

Less distributions from:
Net investment income		(0.0000		)	(0.1096		)	(0.0467		)	(0.1145		)	(0.1593		)	(0.1873		)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0079		)	(0.3223		)

Total distributions		(0.0000		)	(0.1096		)	(0.0467		)	(0.1145		)	(0.1672		)	(0.5096		)

Net asset value, end of period		$	7.7322		$	7.6783		$	7.1491		$	6.0423		$	6.7224		$	7.3258

Total return			0.70	%		8.93	%		19.09	%		- -8.41	%		- -5.94	%		7.14	%
Net assets, end of period (in millions)			$598			$628			$615			$168			$178			$158
Ratio of expenses to average net assets			1.02	% ⁽¹⁾		1.02	%		1.00	%		1.01	%		1.00	%		1.01	%
Ratio of net investment income to average net assets			1.18	% ⁽¹⁾		1.45	%		1.37	%		1.79	%		2.44	%		2.81	%
Portfolio turnover rate			19	%		39	%		43	%		58	%		39	%		42	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF BOND PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Bond Portfolio had net assets totaling $217,526,661 invested in a diversified portfolio of:

95.78%		Bonds
4.22%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Corporate Debt Securities	$	47.48
U.S. Government Mortgage-Backed Securities	$	26.79
U.S. Government Treasury Securities	$	16.05
Cash and Cash Equivalents	$	4.22
U.S. Government Agency Securities	$	3.76
Other Government Securities	$	1.70

At June 30, 2005, the breakdown of bonds (by ratings) held by the Portfolio was as follows:

AAA	54.80	%
AA	2.08	%
A	10.31	%
BBB	14.27	%
BB	7.84	%
B	0.96	%
Below B	0.17	%
Non-rated	5.35	%
Cash and Cash Equivalents	4.22	%


The Investments of Bond Portfolio
June 30, 2005				(Unaudited)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands			Value


Banks - 1.84%
First Union Corporation,
6.824%, 8-1-26	$	2,632	$	3,438,195
SouthTrust Bank, National Association,
6.125%, 1-9-28		500		568,053
				4,006,248
Broadcasting - 1.15%
British Sky Broadcasting Group plc,
8.2%, 7-15-09		1,250		1,414,984
TCA Cable TV, Inc.,
6.53%, 2-1-28		1,000		1,086,561
				2,501,545
Business Equipment and Services - 0.19%
Quebecor World Capital Corporation,
4.875%, 11-15-08		425		409,098

Chemicals - Petroleum and Inorganic - 0.59%
NOVA Chemicals Corporation,
7.0%, 5-15-06		1,250		1,271,875

Chemicals - Specialty - 0.65%
FMC Corporation,
10.25%, 11-1-09		1,250		1,407,813

Coal - 0.49%
Peabody Energy Corporation,
6.875%, 3-15-13		1,000		1,060,000

Computers - Main and Mini - 0.12%
Unisys Corporation,
8.125%, 6-1-06		250		255,625

Finance Companies - 22.55%
Asset Securitization Corporation,
7.49%, 4-14-29		1,132		1,187,703
Barton Springs CDO SPC, Series 2005-1 Segregated Portfolio and Barton Springs CDO Series 2005-1 LLC,
6.85%, 12-20-10		1,750		1,750,000
Bear Stearns Commercial Mortgage Securities Inc.,
7.32%, 10-15-32		3,315		3,738,049
CHL Pass-Through Trust 2003-20,
5.5%, 7-25-33		3,256		3,244,989
Chase Manhattan - First Union Commercial Mortgage Trust,
7.439%, 7-15-09		1,500		1,668,965
Diversified REIT Owner Trust 1999-1,
6.78%, 3-18-11 (A)		750		790,137
First Union National Bank Commercial Mortgage,
7.841%, 3-15-10		2,500		2,853,707
Ford Motor Credit Company,
6.5%, 1-25-07		2,000		2,014,356
GMAC Commercial Mortgage Securities, Inc., Mortgage Pass-Through Certificates, Series 1997-C1,
6.869%, 7-15-29		2,503		2,613,905
GMAC Commercial Mortgage Securities, Inc.:
Series 2001-C1 Trust,
6.465%, 4-15-34		2,500		2,751,290
Series 2004-C1 Trust,
4.1%, 3-10-38		1,500		1,491,771
GSR Mortgage Loan Trust 2004-2F,
7.0%, 1-25-34		2,019		2,095,094
General Motors Acceptance Corporation,
5.625%, 5-15-09		3,500		3,277,726
IndyMac INDX Mortgage Loan Trust 2004-AR4,
4.9%, 8-25-34		981		974,158
SocGen Real Estate Company L.L.C.,
7.64%, 12-29- 49 (A)		2,000		2,140,172
Structured Adjustable Rate Mortgage Loan Trust, Mortgage Pass-Through Certificates:
Series 2004-3AC,
4.9%, 3-25-34		2,081		2,123,348
Series 2004-5,
4.6%, 5-25-34		2,024		1,950,566
Series 2004-6,
4.7273%, 6-25-34		997		963,645
Series 2004-12,
5.1%, 9-25-34		2,993		2,915,135
Series 2004-A,
4.6%, 2-25-34		1,745		1,741,829
Structured Asset Securities Corporation:
4.8%, 10-25-33		989		977,727
4.8004%, 1-25-34		1,540		1,544,229
Structured Asset Securities Corporation, Mortgage Pass-Through Certificates, Series 2003- 40A,
4.8004%, 1-25-34		1,186		1,159,680
Wells Fargo Mortgage Pass-Through Certificates, Series 2003-10,
4.5%, 9-25-18		2,500		2,471,442
Westinghouse Electric Corporation,
8.875%, 6-14-14		500		614,139
				49,053,762
Food and Related - 1.31%
Cadbury Schweppes US Finance LLC,
3.875%, 10-1-08 (A)		750		739,518
ConAgra, Inc.,
7.125%, 10-1-26		1,750		2,117,211
				2,856,729
Forest and Paper Products - 4.24%
Abitibi-Consolidated Company of Canada,
6.95%, 12-15-06		1,250		1,265,625
Bowater Canada Finance Corporation,
7.95%, 11-15-11		1,000		1,058,750
Champion International Corporation:
6.4%, 2-15-26		1,500		1,608,546
6.65%, 12-15-37		1,500		1,674,680
Georgia-Pacific Corporation,
7.375%, 7-15-08		3,000		3,191,250
Westvaco Corporation,
7.5%, 6-15-27		364		430,266
				9,229,117
Homebuilders, Mobile Homes - 0.70%
D.R. Horton, Inc.,
8.0%, 2-1-09		864		946,431
Pulte Corporation,
8.125%, 3-1-11		500		581,227
				1,527,658
Hospital Supply and Management - 0.99%
HCA - The Healthcare Company:
7.125%, 6-1-06		1,000		1,021,438
8.75%, 9-1-10		1,000		1,136,510
				2,157,948
Household - General Products - 1.27%
Procter & Gamble Company (The),
8.0%, 9-1-24		2,000		2,768,888

Multiple Industry - 2.49%
CHYPS CBO 1997-1 Ltd.,
6.72%, 1-15-10 (A)		576		374,741
Comcast Cable Communications, Inc.,
8.5%, 5-1-27		1,250		1,676,224
Preferred Term Securities XVI, Ltd. and Preferred Term Securities XVI, Inc.,
6.0%, 3-23-35 (A)		1,250		1,257,812
Preferred Term Securities XVII, Ltd. and Preferred Term Securities XVII, Inc.,
5.62063%, 6-23-35 (A)		1,000		998,750
Tyco International Group S.A.,
6.375%, 10-15-11		1,000		1,098,305
				5,405,832
Petroleum - International - 0.52%
Petrobras International Finance Company,
9.875%, 5-9-08		1,000		1,130,000

Petroleum - Services - 1.40%
Halliburton Company,
6.75%, 2-1-27		2,000		2,445,700
Pemex Project Funding Master Trust,
9.125%, 10-13-10		500		585,500
				3,031,200
Utilities - Electric - 2.16%
Dominion Resources, Inc.,
5.25%, 8-1-33		2,500		2,560,013
HQI Transelec Chile S.A.,
7.875%, 4-15-11		750		865,284
Oncor Electric Delivery Company,
6.375%, 5-1-12		500		547,914
Pepco Holdings, Inc.,
4.0%, 5-15-10		750		731,783
				4,704,994
Utilities - Gas and Pipeline - 0.96%
Tennessee Gas Pipeline Company,
7.0%, 3-15-27		2,000		2,087,998

Utilities - Telephone - 3.86%
British Telecommunications Public Limited Company,
8.375%, 12-15-10		2,000		2,367,972
Deutsche Telekom International Finance B.V.,
8.5%, 6-15-10		2,500		2,897,337
Pacific Bell,
7.25%, 11-1-27		750		812,591
Sprint Capital Corporation,
6.125%, 11-15-08		1,500		1,580,250
Telefonos de Mexico, S.A. de C.V.,
4.5%, 11-19-08		750		744,375
				8,402,525

TOTAL CORPORATE DEBT SECURITIES - 47.48%			$	103,268,855

(Cost: $100,155,875)


OTHER GOVERNMENT SECURITIES


Brazil - 0.25%
Federative Republic of Brazil (The),
9.25%, 10-22-10		500		556,250

Canada - 0.91%
Province de Quebec,
7.14%, 2-27-26		1,500		1,982,741

Supranational - 0.54%
Inter-American Development Bank,
8.4%, 9-1-09		1,000		1,166,035

TOTAL OTHER GOVERNMENT SECURITIES - 1.70%			$	3,705,026

(Cost: $3,122,498)


UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Agency Obligations - 3.76%
Federal Home Loan Bank,
5.375%, 5-15-19		3,000		3,276,669
Tennessee Valley Authority:
4.875%, 12-15-16		3,500		3,693,732
5.88%, 4-1-36		1,000		1,201,611
				8,172,012
Mortgage-Backed Obligations - 26.79%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
5.5%, 3-15-14		1,860		1,908,680
4.0%, 5-15-16		1,172		1,163,050
4.0%, 10-15-16		1,581		1,566,210
5.0%, 7-15-19		1,442		1,445,737
6.5%, 11-25-21		138		138,262
5.0%, 5-15-23		1,500		1,529,327
5.5%, 4-15-24 (Interest Only)		4,431		391,632
5.5%, 4-15-24 (Interest Only)		2,295		163,467
6.0%, 3-15-29		522		538,559
5.0%, 7-15-29 (Interest Only)		2,345		287,016
7.5%, 9-15-29		769		829,566
4.0%, 2-15-30		500		489,655
4.25%, 3-15-31		1,281		1,269,877
5.0%, 9-15-31 (Interest Only)		3,649		578,735
5.0%, 9-15-32		1,500		1,498,327
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
4.0%, 12-1-08		1,976		1,965,773
6.0%, 11-1-28		886		911,066
7.0%, 5-1-31		158		166,897
6.5%, 10-1-31		189		196,031
6.5%, 11-1-31		310		321,752
6.0%, 2-1-32		480		492,942
6.5%, 6-1-32		305		316,553
5.0%, 3-1-35		1,981		1,983,376
Federal Home Loan Mortgage Corporation Non-Agency REMIC/CMO (Interest Only),
5.5%, 12-15-13		664		136,588
Federal National Mortgage Association Adjustable Rate Pass-Through Certificates,
4.978%, 5-1-35		1,994		2,011,945
Federal National Mortgage Association Agency REMIC/CMO:
5.0%, 3-25-18		3,500		3,577,674
5.0%, 3-25-18 (Interest Only)		1,626		147,442
5.0%, 6-25-18		2,173		2,258,073
4.5%, 8-25-18		2,500		2,516,425
5.5%, 2-25-32		1,500		1,544,153
4.0%, 11-25-32		1,196		1,180,295
4.0%, 3-25-33		926		913,862
3.5%, 8-25-33		2,263		2,133,700
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
4.0%, 1-1-11		2,267		2,240,735
5.5%, 1-1-17		1,318		1,353,687
6.0%, 1-1-17		674		697,534
4.0%, 11-1-18		1,453		1,424,940
5.5%, 10-1-23		1,071		1,084,912
5.0%, 4-1-24		3,436		3,463,623
7.0%, 6-1-24		188		199,463
5.0%, 2-1-25		1,460		1,471,353
6.0%, 12-1-28		243		249,363
6.5%, 3-1-33		708		733,756
Federal National Mortgage Association Non-Agency REMIC/CMO,
4.5%, 7-25-24		1,000		961,780
Government National Mortgage Association Agency REMIC/CMO:
5.5%, 6-20-28 (Interest Only)		4,691		472,999
5.0%, 1-20-32		955		961,616
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
7.5%, 7-15-23		77		82,975
7.5%, 12-15-23		212		228,598
8.0%, 9-15-25		93		100,276
7.0%, 7-20-27		30		32,040
7.0%, 8-20-27		82		86,756
6.5%, 7-15-28		379		397,198
6.5%, 5-15-29		152		159,424
7.5%, 7-15-29		34		35,940
7.75%, 10-15-31		300		316,362
Government National Mortgage Association Non-Agency REMIC/CMO,
4.0%, 1-16-30		570		562,769
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust:
2001-3 Class G,
6.5%, 4-15-27		472		479,276
2002-1 Class 2-G,
6.5%, 10-15-25		1,382		1,395,557
2003-2 Class D,
5.0%, 11-15-23		1,000		1,011,045
2003-2 Class E,
5.0%, 12-15-25		1,500		1,504,980
				58,281,604
Treasury Obligations - 16.05%
United States Treasury Bonds:
3.75%, 5-15-08		1,000		1,002,188
6.125%, 11-15-27		1,500		1,894,336
United States Treasury Notes:
3.5%, 11-15-06		9,000		8,989,803
5.5%, 2-15-08		6,500		6,800,879
5.0%, 2-15-11	11,500			12,218,302
4.0%, 2-15-15		4,000		4,014,220
				34,919,728

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 46.60%			$	101,373,344

(Cost: $100,566,236)


SHORT-TERM SECURITIES


Finance Companies - 1.38%
USAA Capital Corp.,
3.15%, 7-6-05	3,000		2,998,687

Household - General Products - 1.94%
Fortune Brands Inc.,
3.41%, 7-1-05	1,082		1,082,000
Procter & Gamble Company (The),
3.37%, 7-1-05	3,141		3,141,000
			4,223,000

TOTAL SHORT-TERM SECURITIES - 3.32%		$	7,221,687

(Cost: $7,221,687)

TOTAL INVESTMENT SECURITIES - 99.10%		$	215,568,912

(Cost: $211,066,296)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.90%			1,957,749


NET ASSETS - 100.00%		$	217,526,661


Notes to Schedule of Investments
(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $6,301,130 or 2.90% of net assets.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      BOND PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $211,066) (Notes 1 and 3)	$	215,569
Cash		1
Receivables:
Interest		2,033
Portfolio shares sold		92
Prepaid and other assets		4

Total assets		217,699

LIABILITIES
Payable to Portfolio shareholders		143
Accrued accounting services fee (Note 2)		5
Accrued management fee (Note 2)		3
Accrued service fee (Note 2)		2
Accrued shareholder servicing (Note 2)		2
Other		17

Total liabilities		172

Total net assets	$	217,527

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	39
Additional paid-in capital		207,544
Accumulated undistributed income:
Accumulated undistributed net investment income		4,802
Accumulated undistributed net realized gain on investment transactions		639
Net unrealized appreciation in value of investments		4,503

Net assets applicable to outstanding units of capital	$	217,527

Net asset value, redemption and offering price per share	$	5.5857

Capital shares outstanding		38,943
Capital shares authorized		90,000

See Notes to Financial Statements.

Statement of Operations
      BOND PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	5,325

Expenses (Note 2):
Investment management fee		561
Service fee		267
Accounting services fee		32
Audit fees		9
Custodian fees		7
Legal fees		3
Shareholder servicing		3
Other		42

Total expenses		924

Net investment income		4,401

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		639
Realized net gain on foreign currency transactions		401

Realized net gain on investments		1,040
Unrealized depreciation in value of investments during the period	(1,175		)

Net loss on investments		(135	)

Net increase in net assets resulting from operations	$	4,266

See Notes to Financial Statements.

Statement of Changes in Net Assets
      BOND PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

DECREASE IN NET ASSETS
Operations:
Net investment income		$	4,401		$	8,995
Realized net gain on investments			1,040			2,878
Unrealized depreciation			(1,175	)		(3,449	)

Net increase in net assets resulting from operations			4,266			8,424

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(9,286	)
Realized gains on investment transactions			(-	)		(2,436	)

			(-	)		(11,722	)

Capital share transactions ⁽²⁾			(4,895	)		(13,851	)

Total decrease			(629	)		(17,149	)
NET ASSETS
Beginning of period			218,156			235,305

End of period		$	217,527		$	218,156

Undistributed net investment income		$	4,802		$	-	*


(1)See "Financial Highlights" on page 52.

(2)Shares issued from sale of shares			1,792			2,644
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			2,141
Shares redeemed			(2,686	)		(7,186	)

Decrease in outstanding capital shares			(894	)		(2,401	)

Value issued from sale of shares		$	9,872		$	14,987
Value issued from reinvestment of dividend and/or capital gains distribution			- -			11,722
Value redeemed			(14,767	)		(40,560	)

Decrease in outstanding capital		$	(4,895	)	$	(13,851	)

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      BOND PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                            (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	5.4762		$	5.5710		$	5.6032		$	5.3615		$	5.2308		$	5.0497

Income (loss) from investment operations:
Net investment income			0.1233			0.2463			0.2667			0.2396			0.2585			0.3172
Net realized and unrealized gain (loss) on investments		(0.0138		)	(0.0302		)	(0.0322		)		0.2417			0.1306			0.1811

Total from investment operations			0.1095			0.2161			0.2345			0.4813			0.3891			0.4983

Less distributions from:
Net investment income		(0.0000		)	(0.2463		)	(0.2667		)	(0.2396		)	(0.2584		)	(0.3172		)
Capital gains		(0.0000		)	(0.0646		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)

Total distributions		(0.0000		)	(0.3109		)	(0.2667		)	(0.2396		)	(0.2584		)	(0.3172		)

Net asset value, end of period		$	5.5857		$	5.4762		$	5.5710		$	5.6032		$	5.3615		$	5.2308

Total return			2.00	%		3.88	%		4.18	%		8.98	%		7.47	%		9.83	%
Net assets, end of period (in millions)			$218			$218			$235			$247			$171			$117
Ratio of expenses to average net assets			0.86	% ⁽¹⁾		0.85	%		0.84	%		0.83	%		0.83	%		0.84	%
Ratio of net investment income to average net assets			4.12	% ⁽¹⁾		4.16	%		4.26	%		4.92	%		5.49	%		6.08	%
Portfolio turnover rate			17	%		47	%		53	%		34	%		29	%		33	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF CORE EQUITY PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Core Equity Portfolio had net assets totaling $715,163,162 invested in a diversified portfolio of:

96.80%		Common Stocks
3.20%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Health Care Stocks	$	17.69
Technology Stocks	$	17.58
Energy Stocks	$	16.99
Financial Services Stocks	$	9.74
Consumer Services Stocks	$	6.03
Capital Goods Stocks	$	5.32
Consumer Nondurables Stocks	$	4.40
Retail Stocks	$	4.32
Multi-Industry Stocks	$	4.27
Utilities Stocks	$	3.85
Raw Materials Stocks	$	3.60
Cash and Cash Equivalents	$	3.20
Transportation Stocks	$	2.08
Business Equipment and Services Stocks	$	0.93


The Investments of Core Equity Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares		Value


Aircraft - 4.82%
Boeing Company (The)	253,100	$	16,704,600
Lockheed Martin Corporation	111,750		7,249,223
United Technologies Corporation	205,300		10,542,155
			34,495,978
Aluminum - 0.44%
Alcoa Incorporated	119,600		3,125,148

Banks - 1.56%
Citigroup Inc.	158,900		7,345,947
U.S. Bancorp	129,550		3,782,860
			11,128,807
Beverages - 1.56%
PepsiCo, Inc.	207,300		11,179,689

Broadcasting - 1.33%
Liberty Media Corporation, Class A*	936,200		9,539,878

Capital Equipment - 4.35%
Caterpillar Inc.	100,550		9,583,420
Deere & Company	233,600		15,298,464
Illinois Tool Works Inc.	78,250		6,234,960
			31,116,844
Chemicals - Petroleum and Inorganic - 0.62%
du Pont (E.I.) de Nemours and Company	102,400		4,404,224

Chemicals - Specialty - 2.54%
Air Products and Chemicals, Inc.	301,350		18,171,405

Computers - Micro - 2.44%
Dell Inc.*	442,700		17,462,302

Computers - Peripherals - 3.48%
Microsoft Corporation	294,640		7,314,438
SAP Aktiengesellschaft, ADR	405,500		17,558,150
			24,872,588
Defense - 2.05%
General Dynamics Corporation	133,900		14,667,406

Electronic Components - 4.79%
Analog Devices, Inc.	107,450		4,008,959
Intel Corporation	378,290		9,844,997
Maxim Integrated Products, Inc.	134,000		5,116,790
Microchip Technology Incorporated	25,800		765,228
Texas Instruments Incorporated	517,300		14,520,611
			34,256,585
Finance Companies - 1.80%
SLM Corporation	253,600		12,882,880

Food and Related - 2.06%
Campbell Soup Company	122,100		3,757,017
Kellogg Company	246,400		10,950,016
			14,707,033
Health Care - Drugs - 7.55%
Amgen Inc.*	119,690		7,235,859
Genentech, Inc.*	62,400		5,009,472
Gilead Sciences, Inc.*	220,400		9,696,498
Novartis AG, Registered Shares	208,650		9,939,203
Pfizer Inc.	801,935		22,117,367
			53,998,399
Health Care - General - 4.26%
Boston Scientific Corporation*	250,100		6,752,700
Johnson & Johnson	103,800		6,747,000
Wyeth	381,450		16,974,525
			30,474,225
Hospital Supply and Management - 5.88%
Aetna Inc.	75,260		6,233,033
Caremark Rx, Inc.*	61,100		2,720,172
Guidant Corporation	86,000		5,787,800
Medtronic, Inc.	207,950		10,769,731
Stryker Corporation	72,600		3,452,856
UnitedHealth Group Incorporated	90,400		4,713,456
WellPoint, Inc.*	120,400		8,384,656
			42,061,704
Hotels and Gaming - 2.66%
Marriott International, Inc., Class A	188,950		12,890,169
Starwood Hotels & Resorts Worldwide, Inc.	104,800		6,138,136
			19,028,305
Household - General Products - 0.78%
Colgate-Palmolive Company	112,100		5,594,911

Insurance - Property and Casualty - 2.20%
Berkshire Hathaway Inc., Class B*	5,655		15,740,692

Leisure Time Industry - 2.04%
Carnival Corporation	267,100		14,570,305

Multiple Industry - 4.27%
General Electric Company	718,800		24,906,420
Las Vegas Sands, Inc.*	156,800		5,605,600
			30,512,020
Non-Residential Construction - 0.97%
Fluor Corporation	119,900		6,905,041

Petroleum - Canada - 0.53%
Canadian Natural Resources Limited	54,800		1,993,624
Suncor Energy Inc.	38,400		1,817,088
			3,810,712
Petroleum - International - 4.95%
Burlington Resources Inc.	238,100		13,152,644
Exxon Mobil Corporation	387,476		22,268,246
			35,420,890
Petroleum - Services - 11.51%
Baker Hughes Incorporated	549,250		28,099,630
Nabors Industries Ltd.*	155,300		9,414,286
Schlumberger Limited	265,850		20,188,649
Smith International, Inc.	57,700		3,675,490
Transocean Inc.*	104,700		5,650,659
Weatherford International Ltd.*	263,300		15,266,134
			82,294,848
Retail - Food Stores - 0.89%
Walgreen Co.	138,600		6,374,214

Retail - General Merchandise - 2.85%
Family Dollar Stores, Inc.	320,000		8,352,000
Kohl's Corporation*	215,000		12,020,650
			20,372,650
Retail - Specialty Stores - 0.58%
Best Buy Co., Inc.	60,800		4,167,840

Security and Commodity Brokers - 4.18%
Goldman Sachs Group, Inc. (The)	212,150		21,643,543
Legg Mason, Inc.	42,700		4,445,497
Lehman Brothers Holdings Inc.	38,400		3,812,352
			29,901,392
Timesharing and Software - 0.93%
Yahoo! Inc.*	192,700		6,676,092

Trucking and Shipping - 2.08%
United Parcel Service, Inc., Class B	215,100		14,876,316

Utilities - Electric - 1.01%
Dominion Resources, Inc.	97,900		7,184,881

Utilities - Telephone - 2.84%
Sprint Corporation	169,000		4,240,210
Vodafone Group Plc, ADR	659,850		16,047,552
			20,287,762

TOTAL COMMON STOCKS - 96.80%		$	692,263,966

(Cost: $536,287,232)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Capital Equipment - 1.25%
Caterpillar Inc.,
3.25%, 7-8-05	$	6,000		5,996,208
Deere (John) Capital Corporation,
3.33%, 7-26-05		3,000		2,993,063
				8,989,271
Food and Related - 0.56%
Wm. Wrigley Jr. Company,
3.25%, 7-14-05		4,000		3,995,306

Household - General Products - 0.43%
Fortune Brands Inc.,
3.41%, 7-1-05		3,066		3,066,000

Publishing - 0.98%
Tribune Co.,
3.28%, 7-11-05		7,000		6,993,622

TOTAL SHORT-TERM SECURITIES - 3.22%			$	23,044,199

(Cost: $23,044,199)

TOTAL INVESTMENT SECURITIES - 100.02%			$	715,308,165

(Cost: $559,331,431)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.02%)				(145,003	)


NET ASSETS - 100.00%			$	715,163,162


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      CORE EQUITY PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $559,331) (Notes 1 and 3)	$	715,308
Cash		1
Receivables:
Dividends and interest		953
Portfolio shares sold		28
Prepaid and other assets		11

Total assets		716,301

LIABILITIES
Payable for investment securities purchased		765
Payable to Portfolio shareholders		287
Accrued accounting services fee (Note 2)		14
Accrued management fee (Note 2)		14
Accrued shareholder servicing (Note 2)		6
Accrued service fee (Note 2)		5
Other		47

Total liabilities		1,138

Total net assets	$	715,163

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	68
Additional paid-in capital		689,939
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,414
Accumulated undistributed net realized loss on investment transactions	(132,231		)
Net unrealized appreciation in value of investments		155,973

Net assets applicable to outstanding units of capital	$	715,163

Net asset value, redemption and offering price per share	$	10.4721

Capital shares outstanding		68,292
Capital shares authorized		170,000

See Notes to Financial Statements.

Statement of Operations
      CORE EQUITY PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $25)	$	4,560
Interest and amortization		470

Total income		5,030

Expenses (Note 2):
Investment management fee		2,496
Service fee		891
Accounting services fee		84
Custodian fees		16
Audit fees		14
Shareholder servicing		10
Legal fees		6
Other		99

Total expenses		3,616

Net investment income		1,414

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		42,612
Realized net gain on foreign currency transactions		- -	*

Realized net gain on investments		42,612
Unrealized depreciation in value of investments during the period	(27,881		)

Net gain on investments		14,731

Net increase in net assets resulting from operations	$	16,145

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      CORE EQUITY PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,414		$	4,410
Realized net gain on investments			42,612			30,748
Unrealized appreciation (depreciation)			(27,881	)		29,667

Net increase in net assets resulting from operations			16,145			64,825

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(4,448	)
Realized gains on investment transactions			(-	)		(-	)

			(-	)		(4,448	)

Capital share transactions ⁽²⁾			(38,074	)		(59,470	)

Total increase (decrease)			(21,929	)		907
NET ASSETS
Beginning of period			737,092			736,185

End of period		$	715,163		$	737,092

Undistributed net investment income (loss)		$	1,414		$	(-	)*


(1)See "Financial Highlights" on page 62.

(2) Shares issued from sale of shares			1,216			2,968
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			434
Shares redeemed			(4,928	)		(9,719	)

Decrease in outstanding capital shares			(3,712	)		(6,317	)

Value issued from sale of shares		$	12,470		$	28,125
Value issued from reinvestment of dividend and/or capital gains distribution			- -			4,448
Value redeemed			(50,544	)		(92,043	)

Decrease in outstanding capital		$	(38,074	)	$	(59,470	)

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      CORE EQUITY PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	10.2369		$	9.3996		$	8.0720		$	10.3608		$	12.2027		$	12.9609

Income (loss) from investment operations:
Net investment income			0.0207			0.0622			0.0662			0.0476			0.0231			0.0376
Net realized and unrealized gain (loss) on investments			0.2145			0.8373			1.3276			(2.2888	)		(1.8418	)		1.1650

Total from investment operations			0.2352			0.8995			1.3938			(2.2412	)		(1.8187	)		1.2026

Less distributions from:
Net investment income			(0.0000	)	(0.0622		)	(0.0662		)		(0.0476	)		(0.0229	)		(0.0360	)
Capital gains			(0.0000	)	(0.0000		)	(0.0000		)		(0.0000	)		(0.0003	)		(1.9248	)

Total distributions			(0.0000	)	(0.0622		)	(0.0662		)		(0.0476	)		(0.0232	)		(1.9608	)

Net asset value, end of period		$	10.4721		$	10.2369		$	9.3996		$	8.0720		$	10.3608		$	12.2027

Total return			2.30	%		9.57	%		17.27	%		- -21.63	%		- -14.91	%		9.28	%
Net assets, end of period (in millions)			$715			$737			$736			$650			$913			$1,084
Ratio of expenses to average net assets			1.01	% ⁽¹⁾		1.01	%		1.00	%		0.99	%		0.98	%		0.98	%
Ratio of net investment income to average net assets			0.40	% ⁽¹⁾		0.62	%		0.78	%		0.50	%		0.21	%		0.28	%
Portfolio turnover rate			30	%		54	%		49	%		38	%		31	%		49	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF DIVIDEND INCOME PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Dividend Income Portfolio had net assets totaling $28,842,596 invested in a diversified portfolio of:

94.85%		Common Stocks
5.15%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Energy Stocks	$	20.19
Financial Services Stocks	$	16.83
Technology Stocks	$	8.68
Consumer Nondurables Stocks	$	8.67
Health Care Stocks	$	8.65
Utilities Stocks	$	6.58
Consumer Services Stocks	$	5.41
Cash and Cash Equivalents	$	5.15
Capital Goods Stocks	$	4.80
Multi-Industry Stocks	$	3.68
Raw Materials Stocks	$	3.45
Transportation Stocks	$	2.86
Miscellaneous Stocks	$	2.57
Shelter Stocks	$	2.48


The Investments of Dividend Income Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares			Value


Aircraft - 3.40%
Boeing Company (The)		6,897	$	455,202
Goodrich Corporation		6,978		285,819
Lockheed Martin Corporation		3,681		238,786
				979,807
Aluminum - 0.73%
Alcoa Incorporated		8,090		211,392

Banks - 2.55%
Bank of America Corporation		8,446		385,222
Citigroup Inc.		7,584		350,608
				735,830
Beverages - 1.48%
Diageo plc, ADR		7,221		428,205

Business Equipment and Services - 1.20%
Genuine Parts Company		8,445		347,005

Capital Equipment - 2.15%
Deere & Company		9,455		619,208

Chemicals - Petroleum and Inorganic - 1.51%
Dow Chemical Company (The)		4,896		218,019
du Pont (E.I.) de Nemours and Company		5,074		218,233
				436,252
Computers - Peripherals - 3.53%
Microsoft Corporation		22,121		549,154
SAP Aktiengesellschaft, ADR		10,823		468,636
				1,017,790
Electrical Equipment - 0.59%
Emerson Electric Co.		2,709		169,665

Electronic Components - 1.75%
Microchip Technology Incorporated		10,827		321,129
Texas Instruments Incorporated		6,551		183,887
				505,016
Finance Companies - 4.80%
Caterpillar Inc.		5,099		485,986
SLM Corporation		17,668		897,534
				1,383,520
Food and Related - 0.48%
Campbell Soup Company		4,539		139,665

Health Care - Drugs - 3.33%
Abbott Laboratories		8,947		438,492
Pfizer Inc.		18,973		523,275
				961,767
Health Care - General - 1.49%
Boston Scientific Corporation*		9,026		243,702
Johnson & Johnson		2,852		185,380
				429,082
Hospital Supply and Management - 3.83%
HCA Inc.		4,624		262,042
Medtronic, Inc.		11,919		617,285
PacifiCare Health Systems, Inc.*		3,150		225,067
				1,104,394
Hotels and Gaming - 4.68%
Harrah's Entertainment, Inc.		7,312		526,976
Starwood Hotels & Resorts Worldwide, Inc.		14,063		823,670
				1,350,646
Household - General Products - 2.69%
Colgate-Palmolive Company		9,074		452,883
Procter & Gamble Company (The)		6,118		322,724
				775,607
Insurance - Property and Casualty - 2.49%
Allstate Corporation (The)		7,341		438,625
St. Paul Companies, Inc. (The)		7,105		280,861
				719,486
Leisure Time Industry - 0.73%
Carnival Corporation		3,860		210,563

Mining - 1.21%
Freeport-McMoRan Copper & Gold Inc., Class B		9,282		347,518

Multiple Industry - 3.68%
General Electric Company		23,385		810,290
Valor Communications Group, Inc.		18,260		251,988
				1,062,278
Non-Residential Construction - 2.06%
Fluor Corporation		10,310		593,753

Petroleum - International - 9.02%
Anadarko Petroleum Corporation		8,344		685,460
BP p.l.c., ADR		5,151		321,319
Burlington Resources Inc.		11,128		614,711
Exxon Mobil Corporation		14,400		827,568
Marathon Oil Corporation		2,866		152,958
				2,602,016
Petroleum - Services - 11.17%
BJ Services Company		5,735		300,973
Baker Hughes Incorporated		14,289		731,025
National-Oilwell, Inc.*		6,273		298,218
Patterson-UTI Energy, Inc.		20,632		574,292
Schlumberger Limited		9,220		700,167
Transocean Inc.*		6,582		355,231
Weatherford International Ltd.*		4,512		261,606
				3,221,512
Railroad - 0.86%
Union Pacific Corporation		3,825		247,860

Real Estate Investment Trust - 2.48%
ProLogis		7,016		282,324
Simon Property Group, Inc.		5,991		434,288
				716,612
Retail - General Merchandise - 1.37%
May Department Stores Company (The)		9,852		395,656

Savings and Loans - 0.56%
Capitol Federal Financial		4,657		160,783

Security and Commodity Brokers - 6.43%
Chicago Mercantile Exchange Holdings Inc.		1,886		557,313
Franklin Resources, Inc.		1,952		150,265
Marsh & McLennan Companies, Inc.		12,179		337,358
Merrill Lynch & Co., Inc.		4,872		268,009
Morgan (J.P.) Chase & Co.		10,715		378,454
New York Community Bancorp, Inc.		8,930		161,812
				1,853,211
Tobacco - 4.02%
Altria Group, Inc.		11,790		762,341
Reynolds American Inc.		5,036		396,837
				1,159,178
Trucking and Shipping - 2.00%
United Parcel Service, Inc., Class B		8,325		575,757

Utilities - Electric - 1.06%
Dominion Resources, Inc.		4,166		305,743

Utilities - Gas and Pipeline - 2.74%
Enbridge Inc.		8,290		236,265
Kinder Morgan, Inc.		6,658		553,946
				790,211
Utilities - Telephone - 2.78%
BellSouth Corporation		10,304		273,777
Iowa Telecommunications Services, Inc.		12,595		236,156
Vodafone Group Plc, ADR		11,989		291,572
				801,505

TOTAL COMMON STOCKS - 94.85%			$	27,358,493

(Cost: $25,436,073)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Commercial Paper
Household - General Products - 2.69%
Fortune Brands Inc.,
3.41%, 7-1-05	$	776		776,000

Security and Commodity Brokers - 1.57%
Greenwich Capital Holdings Inc. (Royal Bank of Scotland PLC (The)),
3.4%, 7-1-05		451		451,000

Total Commercial Paper - 4.26%				1,227,000


United States Government Security - 4.85%
Federal Home Loan Bank,
2.55%, 7-1-05		1,400		1,400,000

TOTAL SHORT-TERM SECURITIES - 9.11%			$	2,627,000

(Cost: $2,627,000)

TOTAL INVESTMENT SECURITIES - 103.96%			$	29,985,493

(Cost: $28,063,073)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (3.96%)				(1,142,897	)


NET ASSETS - 100.00%			$	28,842,596


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      DIVIDEND INCOME PORTFOLIO
      June 30, 2005                                                                                                          (Unaudited)


ASSETS
Investment securities - at value (cost - $28,063,073)	$	29,985,493
Cash		116
Receivables:
Portfolio shares sold		106,748
Dividends and interest		50,874
Prepaid and other assets		123

Total assets		30,143,354

LIABILITIES
Payable for investment securities purchased		1,292,754
Accrued accounting services fee (Note 2)		2,165
Accrued management fee (Note 2)		551
Accrued shareholder servicing (Note 2)		200
Accrued service fee (Note 2)		197
Payable to Portfolio shareholders		167
Other		4,724

Total liabilities		1,300,758

Total net assets	$	28,842,596

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	5,126
Additional paid-in capital		26,783,916
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		186,165
Accumulated undistributed net realized loss on investment transactions		(55,031	)
Net unrealized appreciation in value of investments		1,922,420

Net assets applicable to outstanding units of capital	$	28,842,596

Net asset value, redemption and offering price per share	$	5.6268

Capital shares outstanding		5,125,927
Capital shares authorized		60,000,000

See Notes to Financial Statements.

Statement of Operations
      DIVIDEND INCOME PORTFOLIO
      For the Six Months Ended June 30, 2005                                                                 (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $633)	$	232,019
Interest and amortization		31,207

Total income		263,226

Expenses (Note 2):
Investment management fee		78,243
Service fee		27,900
Accounting services fee		8,812
Audit fees		7,220
Custodian fees		5,846
Shareholder servicing		625
Other		3,086

Total		131,732
Less voluntary waiver of investment management fee (Note 2)		(54,659	)

Total expenses		77,073

Net investment income		186,153

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments		(42,610	)
Unrealized appreciation in value of investments during the period		688,439

Net gain on investments		645,829

Net increase in net assets resulting from operations	$	831,982

See Notes to Financial Statements.

Statement of Changes in Net Assets
      DIVIDEND INCOME PORTFOLIO                                                                (Unaudited)


				For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income	$	186,153		$	104,019
Realized net loss on investments		(42,610	)		(12,421	)
Unrealized appreciation		688,439			1,233,981

Net increase in net assets resulting from operations		831,982			1,325,579

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(104,007	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(104,007	)

Capital share transactions ⁽²⁾		10,908,012			15,880,986

Total increase		11,739,994			17,102,558
NET ASSETS
Beginning of period		17,102,602			44

End of period	$	28,842,596		$	17,102,602

Undistributed net investment income	$	186,165		$	12


(1)See "Financial Highlights" on page 71.

(2)Shares issued from sale of shares		2,049,963			3,162,328
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			19,033
Shares redeemed		(53,807	)		(51,599	)

Increase in outstanding capital shares		1,996,156			3,129,762

Value issued from sale of shares	$	11,201,564		$	16,041,117
Value issued from reinvestment of dividend and/or capital gains distribution		- -			104,007
Value redeemed		(293,552	)		(264,138	)

Increase in outstanding capital	$	10,908,012		$	15,880,986

See Notes to Financial Statements.

Financial Highlights
      DIVIDEND INCOME PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                               (Unaudited)


		For the six months ended			For the fiscal year ended			For the fiscal period from 12-30-03⁽¹⁾ through
		6-30-05			12-31-04			12-31-03

Net asset value, beginning of period		$	5.4645		$	5.0000		$	5.0000

Income from investment operations:
Net investment income			0.0363			0.0337			0.0000
Net realized and unrealized gain on investments			0.1260			0.4645			0.0000

Total from investment operations			0.1623			0.4982			0.0000

Less distributions from:
Net investment income		(0.0000		)	(0.0337		)	(0.0000		)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)

Total distributions		(0.0000		)	(0.0337		)	(0.0000		)

Net asset value, end of period		$	5.6268		$	5.4645		$	5.0000

Total return			2.97	%		9.96	%		0.00	%
Net assets, end of period	$28,842,596			$17,102,602					$44
Ratio of expenses to average net assets including voluntary expense waiver			0.69	% ⁽²⁾		0.76	%		0.00	%
Ratio of net investment income to average net assets including voluntary expense waiver			1.67	% ⁽²⁾		2.08	%		0.00	%
Ratio of expenses to average net assets excluding voluntary expense waiver			1.18	% ⁽²⁾		1.46	%		0.00	%
Ratio of net investment income to average net assets excluding voluntary expense waiver			1.18	% ⁽²⁾		1.38	%		0.00	%
Portfolio turnover rate			15	%		22	%		0	%

(1) Commencement of operations.
(2) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF GLOBAL NATURAL RESOURCES PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Global Natural Resources Portfolio had net assets totaling $5,706,256 invested in a diversified portfolio of:

85.13%		Common Stocks
14.87%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio was invested by geographic region and by industry, respectively, as follows:

United States	$	26.76
Canada	$	21.14
Cash and Cash Equivalents	$	14.87
South America	$	12.75
Pacific Basin	$	11.34
Africa	$	5.28
Other	$	4.07
Europe	$	3.34
Mexico	$	0.45

Energy Stocks	$	31.14
Raw Materials Stocks	$	31.00
Cash and Cash Equivalents	$	14.87
Multi-Industry Stocks	$	13.98
Shelter Stocks	$	4.75
Capital Goods Stocks	$	2.86
Miscellaneous Stocks	$	1.40


The Investments of Global Natural Resources Portfolio
June 30, 2005		(Unaudited)
COMMON STOCKS	Shares		Value


Bermuda - 2.89%
China Gas Holdings Limited (A)*	372,000	$	64,625
Golar LNG Limited*	3,700		44,307
Tsakos Energy Navigation Limited	1,300		50,401
Weatherford International Ltd.*	100		5,798
			165,131
Brazil - 10.13%
Aracruz Celulose S.A., ADR	4,600		159,850
Companhia Siderurgica Nacional, ADR	2,700		43,605
Companhia Vale do Rio Doce, ADR	5,300		155,184
Petroleo Brasileiro S.A. - Petrobras, ADR	2,700		140,751
Votorantim Celulose e Papel S.A., ADR	6,500		78,650
			578,040
Canada - 21.14%
Alcan Inc. (A)	1,300		39,025
Barrick Gold Corporation (A)	3,700		92,409
Bema Gold Corporation (A)*	13,600		32,302
Calfrac Well Services Ltd. (A)	800		20,242
Cambior Inc. (A)*	32,700		70,193
Canfor Corporation (A)*	2,700		32,395
Dundee Precious Metals Inc. (A)*	2,300		15,112
Eldorado Gold Corporation (A)*	6,000		15,916
Flint Energy Services Ltd. (A)*	1,400		29,138
Glamis Gold Ltd. (A)*	4,400		75,344
Goldcorp Inc. (A)*	2,700		42,951
Golden Star Resources Ltd. (A)*	8,500		26,363
Guinor Gold Corporation (A)*	65,000		50,400
Hydrogenics Corporation (A)*	5,600		19,928
IAMGOLD Corporation (A)	6,800		45,899
Inco Limited (A)	1,600		60,268
Kinross Gold Corporation (A)*	17,100		104,677
Placer Dome Inc. (A)	5,200		79,579
Precision Drilling Corporation (A)*	2,700		106,418
Rio Narcea Gold Mines, Ltd. (A)*	8,500		13,667
Savanna Energy Services Corp. (A)*	2,000		31,587
Trican Well Service Ltd. (A)*	2,800		68,834
Western Oil Sands Inc., Class A (A)*	3,800		73,785
zed.i solutions inc. (A)*	13,600		19,647
ZENON Environmental Inc. (A)*	2,000		40,353
			1,206,432
Cayman Islands - 1.18%
Noble Corporation	1,100		67,661

China - 7.64%
Aluminum Corporation of China Limited, ADR	1,900		104,443
China Petroleum & Chemical Corporation, ADR	3,300		128,766
China Shenhua Energy Company Limited, H shares (A)*	51,000		49,221
China Shenhua Energy Company Limited, H shares (A)(B)*	14,000		13,512
Sino-Forest Corporation, Class A (A)*	19,000		42,801
Sinopec Zhenhai Refining & Chemical Company Limited, H Shares (A)	96,000		90,799
Yanzhou Coal Mining Company Limited, Class H (A)	8,400		6,594
			436,136
France - 1.02%
Total S.A., ADR	500		58,425

India - 0.82%
Reliance Industries Limited, GDR (B)	1,600		46,576

Mexico - 0.45%
Cemex, S.A. de C.V., ADR	600		25,452

Peru - 2.62%
Compania de Minas Buenaventura S.A.A., ADR	6,500		149,435

Russia - 0.26%
OAO LUKOIL, ADR	400		14,780

South Africa - 5.28%
AngloGold Ashanti Limited, ADR	3,100		110,763
Gold Fields Limited, ADR	2,400		27,240
Impala Platinum Holdings Limited (A)	1,300		116,680
Mvelaphanda Resources Limited (A)*	20,300		46,542
			301,225
South Korea - 0.51%
Honam Petrochemical Corp. (A)*	700		29,265

Thailand - 2.37%
Thai Oil Public Company Limited (A)	87,900		135,067

United Kingdom - 2.06%
Highland Gold Mining Limited (A)	12,400		35,992
Randgold Resources Limited, ADR*	5,800		81,461
			117,453
United States - 26.76%
Air Products and Chemicals, Inc.	600		36,180
Arch Coal, Inc.	2,700		147,069
Atwood Oceanics, Inc.*	800		49,248
Century Aluminum Company*	4,700		95,810
Dow Chemical Company (The)	1,100		48,983
du Pont (E.I.) de Nemours and Company	1,600		68,816
Exxon Mobil Corporation	700		40,229
FMC Technologies, Inc.*	1,800		57,546
Huntsman Corporation*	5,100		103,377
KFx Inc.*	700		10,003
Massey Energy Company	3,200		120,704
Maverick Tube Corporation*	800		23,840
Nalco Holdings LLC*	1,300		25,519
National-Oilwell, Inc.*	300		14,262
Offshore Logistics, Inc.*	2,600		85,384
Patterson-UTI Energy, Inc.	5,100		141,959
Peabody Energy Corporation	2,700		140,508
Plug Power Inc.*	1,500		10,283
Praxair, Inc.	1,400		65,240
Premcor Inc.	700		51,926
Smith International, Inc.	2,100		133,770
streetTRACKS Gold Trust*	300		13,026
Transocean Inc.*	800		43,176
			1,526,858

TOTAL COMMON STOCKS - 85.13%		$	4,857,936

(Cost: $4,764,630)


SHORT-TERM SECURITY - 22.08%	Principal Amount in Thousands


Repurchase Agreement
J.P. Morgan Securities Inc., 2.4% Repurchase Agreement dated 6-30-05 to be repurchased at $1,260,084 on 7-1-05 (C)	$	1,260	$	1,260,000
(Cost: $1,260,000)

TOTAL INVESTMENT SECURITIES - 107.21%			$	6,117,936

(Cost: $6,024,630)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (7.21%)				(411,680	)


NET ASSETS - 100.00%			$	5,706,256


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Listed on an exchange outside the United States.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $60,088 or 1.05% of net assets.
(C)Collateralized by $1,278,193 United States Treasury Note, 3.375% due 2-15-07; market value and accrued interest aggregate $1,294,462.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      GLOBAL NATURAL RESOURCES PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (Notes 1 and 3):
Securities (cost - $4,765)	$	4,858
Repurchase Agreement (cost - $1,260)		1,260

		6,118
Cash		1
Receivables:
Portfolio shares sold		241
Investment securities sold		51
Dividends and interest		3
Prepaid and other assets		24

Total assets		6,438

LIABILITIES
Payable for investment securities purchased		730
Accrued shareholder servicing (Note 2)		1
Accrued management fee (Note 2)		- -	*
Accrued service fee (Note 2)		- -	*
Payable to Portfolio shareholders		- -	*
Other		1

Total liabilities		732

Total net assets	$	5,706

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	1
Additional paid-in capital		5,616
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		- -	*
Accumulated undistributed net realized loss on investment transactions		(3	)
Net unrealized appreciation in value of investments		92

Net assets applicable to outstanding units of capital	$	5,706

Net asset value, redemption and offering price per share	$	5.2318

Capital shares outstanding		1,091
Capital shares authorized		60,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      GLOBAL NATURAL RESOURCES PORTFOLIO
      For the Period from April 28, 2005 ⁽¹⁾ through June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Dividends	$	4
Interest and amortization		2

Total income		6

Expenses (Note 2):
Investment management fee		4
Legal fees		3
Service fee		1
Shareholder servicing		- -	*
Custodian fees		- -	*

Total expenses		8

Net investment loss		(2	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on securities		(3	)
Realized net gain on foreign currency transactions		2

Realized net loss on investments		(1	)
Unrealized appreciation in value of investments during the period		92

Net gain on investments		91

Net increase in net assets resulting from operations	$	89

*Not shown due to rounding.
(1)Commencement of operations.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      GLOBAL NATURAL RESOURCES PORTFOLIO
      For the Period from April 28, 2005 ⁽¹⁾ through June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INCREASE IN NET ASSETS
Operations:
Net investment loss	$	(2	)
Realized net loss on investments		(1	)
Unrealized appreciation		92

Net increase in net assets resulting from operations		89

Distributions to shareholders from (Note 1E): ⁽²⁾
Net investment income		(-	)
Realized gains on investment transactions		(-	)

		(-	)

Capital share transactions ⁽³⁾		5,617

Total increase		5,706
NET ASSETS
Beginning of period		- -

End of period	$	5,706

Undistributed net investment income	$	- -	^*


(1)Commencement of operations.
(2)See "Financial Highlights" on page 80.

(3)Shares issued from sale of shares		1,096
Shares issued from reinvestment of dividend and/or capital gains distribution		- -
Shares redeemed		(5	)

Increase in outstanding capital shares		1,091

Value issued from sale of shares	$	5,643
Value issued from reinvestment of dividend and/or capital gains distribution		- -
Value redeemed		(26	)

Increase in outstanding capital	$	5,617

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      GLOBAL NATURAL RESOURCES PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)




Net asset value, beginning of period	$	5.0000

Income (loss) from investment operations:
Net investment loss	(0.0014		)
Net realized and unrealized gain on investments		0.2332

Total from investment operations		0.2318

Less distributions from:
Net investment income	(0.0000		)
Capital gains	(0.0000		)

Total distributions	(0.0000		)

Net asset value, end of period	$	5.2318

Total return		4.64	%
Net assets, end of period (in millions)		$6
Ratio of expenses to average net assets		2.19	%⁽²⁾
Ratio of net investment loss to average net assets		- -0.40	%⁽²⁾
Portfolio turnover rate		12	%

(1)Commencement of operations.
(2) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF GROWTH PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Growth Portfolio had net assets totaling $1,195,640,434 invested in a diversified portfolio of:

97.88%		Common Stocks
2.12%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Health Care Stocks	$	22.23
Technology Stocks	$	17.43
Financial Services Stocks	$	17.29
Multi-Industry Stocks	$	8.46
Business Equipment and Services Stocks	$	7.51
Retail Stocks	$	7.05
Energy Stocks	$	6.46
Miscellaneous Stocks	$	4.85
Consumer Nondurables Stocks	$	3.74
Consumer Services Stocks	$	2.86
Cash and Cash Equivalents	$	2.12


The Investments of Growth Portfolio
June 30, 2005				(Unaudited)
COMMON STOCKS		Shares		Value


Aircraft - 1.07%
United Technologies Corporation		250,000	$	12,837,500

Business Equipment and Services - 2.02%
Robert Half International Inc.		470,000		11,735,900
Staples, Inc.		584,400		12,444,798
				24,180,698
Chemicals - Petroleum and Inorganic - 1.97%
Monsanto Company		375,000		23,576,250

Communications Equipment - 1.46%
Cisco Systems, Inc.*		910,584		17,387,602

Computers - Micro - 2.88%
Dell Inc.*		871,740		34,385,784

Computers - Peripherals - 6.13%
EMC Corporation*		850,000		11,653,500
Microsoft Corporation	1,891,900			46,966,418
Oracle Corporation*	1,115,000			14,723,575
				73,343,493
Consumer Electronics - 0.72%
Harman International Industries, Incorporated		105,600		8,591,616

Defense - 2.45%
General Dynamics Corporation		267,300		29,280,042

Electronic Components - 3.44%
Linear Technology Corporation		302,200		11,086,207
Maxim Integrated Products, Inc.		228,172		8,712,748
Microchip Technology Incorporated		718,600		21,313,676
				41,112,631
Finance Companies - 3.97%
SLM Corporation		934,400		47,467,520

Health Care - Drugs - 8.37%
Alcon, Inc.		172,100		18,819,135
Allergan, Inc.		115,500		9,845,220
Genentech, Inc.*		330,000		26,492,400
Gilead Sciences, Inc.*		369,400		16,251,753
Pfizer Inc.	1,040,835			28,706,229
				100,114,737
Health Care - General - 6.79%
DENTSPLY International Inc.		190,000		10,260,950
Johnson & Johnson		723,300		47,014,500
Zimmer Holdings, Inc.*		313,400		23,871,678
				81,147,128
Hospital Supply and Management - 7.07%
Medtronic, Inc.		476,900		24,698,651
Stryker Corporation		295,000		14,030,200
UnitedHealth Group Incorporated		877,600		45,758,064
				84,486,915
Hotels and Gaming - 1.79%
Starwood Hotels & Resorts Worldwide, Inc.		365,000		21,378,050

Household - General Products - 3.74%
Colgate-Palmolive Company		225,000		11,229,750
Procter & Gamble Company (The)		635,000		33,496,250
				44,726,000
Leisure Time Industry - 1.07%
Carnival Corporation		235,000		12,819,250

Motor Vehicle Parts - 1.22%
Danaher Corporation		278,900		14,597,626

Multiple Industry - 8.46%
General Electric Company	1,206,400			41,801,760
Google Inc., Class A*		139,200		40,944,984
Las Vegas Sands, Inc.*		175,300		6,266,975
Research In Motion Limited*		165,000		12,171,225
				101,184,944
Petroleum - Services - 6.46%
Baker Hughes Incorporated		363,900		18,617,124
Schlumberger Limited		385,000		29,236,900
Smith International, Inc.		461,400		29,391,180
				77,245,204
Retail - Food Stores - 3.49%
Walgreen Co.		906,400		41,685,336

Retail - General Merchandise - 0.77%
Kohl's Corporation*		165,000		9,225,150

Retail - Specialty Stores - 2.79%
Advance Auto Parts, Inc.*		230,000		14,846,500
Home Depot, Inc. (The)		474,997		18,477,383
				33,323,883
Security and Commodity Brokers - 13.32%
American Express Company		211,500		11,258,145
Chicago Mercantile Exchange Holdings Inc.		128,000		37,824,000
Franklin Resources, Inc.		410,500		31,600,290
Goldman Sachs Group, Inc. (The)		232,600		23,729,852
Legg Mason, Inc.		352,600		36,709,186
Moody's Corporation		200,000		8,992,000
T. Rowe Price Group, Inc.		146,000		9,143,250
				159,256,723
Timesharing and Software - 5.49%
Automatic Data Processing, Inc.		640,000		26,860,800
eBay Inc.*		298,100		9,847,734
Paychex, Inc.		545,000		17,720,675
Yahoo! Inc.*		325,000		11,259,625
				65,688,834
Trucking and Shipping - 0.94%
Expeditors International of Washington, Inc.		225,600		11,236,008

TOTAL COMMON STOCKS - 97.88%			$	1,170,278,924

(Cost: $948,047,606)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Capital Equipment - 0.50%
Caterpillar Inc.,
3.25%, 7-8-05	$	6,000		5,996,208

Chemicals - Specialty - 0.68%
Air Products and Chemicals, Inc.,
3.38%, 7-1-05		8,100		8,100,000

Food and Related - 0.33%
Wm. Wrigley Jr. Company,
3.25%, 7-14-05		4,000		3,995,306

Household - General Products - 0.31%
Fortune Brands Inc.,
3.41%, 7-1-05		3,755		3,755,000

Multiple Industry - 0.54%
Detroit Edison Co.,
3.33%, 7-5-05		6,407		6,404,629

TOTAL SHORT-TERM SECURITIES - 2.36%			$	28,251,143

(Cost: $28,251,143)

TOTAL INVESTMENT SECURITIES - 100.24%			$	1,198,530,067

(Cost: $976,298,749)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.24%)				(2,889,633	)


NET ASSETS - 100.00%			$	1,195,640,434


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      GROWTH PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (cost - $976,299) (Notes 1 and 3)	$	1,198,530
Cash		- -	*
Receivables:
Investment securities sold		1,494
Dividends and interest		851
Portfolio shares sold		677
Prepaid and other assets		19

Total assets		1,201,571

LIABILITIES
Payable for investment securities purchased		4,871
Payable to Portfolio shareholders		933
Accrued management fee (Note 2)		23
Accrued accounting services fee (Note 2)		21
Accrued shareholder servicing (Note 2)		10
Accrued service fee (Note 2)		8
Other		65

Total liabilities		5,931

Total net assets	$	1,195,640

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	141
Additional paid-in capital		1,230,126
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		477
Accumulated undistributed net realized loss on investment transactions		(257,335	)
Net unrealized appreciation in value of investments		222,231

Net assets applicable to outstanding units of capital	$	1,195,640

Net asset value, redemption and offering price per share	$	8.4818

Capital shares outstanding		140,965
Capital shares authorized		300,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      GROWTH PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $25)	$	5,997
Interest and amortization		402

Total income		6,399

Expenses (Note 2):
Investment management fee		4,094
Service fee		1,479
Accounting services fee		124
Custodian fees		19
Audit fees		16
Legal fees		15
Shareholder servicing		14
Other		161

Total expenses		5,922

Net investment income		477

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		46,146
Unrealized depreciation in value of investments during the period	(32,641		)

Net gain on investments		13,505

Net increase in net assets resulting from operations	$	13,982

See Notes to Financial Statements.

Statement of Changes in Net Assets
      GROWTH PORTFOLIO
      (In Thousands)                                                                                                                (Unaudited)


	For the six months ended			For the fiscal year ended
	6-30-05			12-31-04

DECREASE IN NET ASSETS
Operations:
Net investment income	$	477		$	3,406
Realized net gain on investments		46,146			48,990
Unrealized depreciation		(32,641	)		(13,798	)

Net increase in net assets resulting from operations		13,982			38,598

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(3,383	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(3,383	)

Capital share transactions ⁽²⁾		(70,484	)		(66,016	)

Total decrease		(56,502	)		(30,801	)
NET ASSETS
Beginning of period		1,252,142			1,282,943

End of period	$	1,195,640		$	1,252,142

Undistributed net investment income	$	477		$	-	^*


(1)See "Financial Highlights" on page 89.

(2)Shares issued from sale of shares		2,933			9,948
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			404
Shares redeemed		(11,517	)		(18,672	)

Decrease in outstanding capital shares		(8,584	)		(8,320	)

Value issued from sale of shares	$	24,108		$	80,227
Value issued from reinvestment of dividend and/or capital gains distribution		- -			3,383
Value redeemed		(94,592	)		(149,626	)

Decrease in outstanding capital	$	(70,484	)	$	(66,016	)

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      GROWTH PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	8.3728		$	8.1267		$	6.6041		$	8.3923		$	9.8831		$	10.8751

Income (loss) from investment operations:
Net investment income (loss)			0.0034			0.0228		(0.0048		)		0.0009			0.0246			0.0163
Net realized and unrealized gain (loss) on investments			0.1056			0.2460			1.5275		(1.7882		)	(1.4417		)		0.1375

Total from investment operations			0.1090			0.2688			1.5227		(1.7873		)	(1.4171		)		0.1538

Less distributions from:
Net investment income		(0.0000		)	(0.0227		)	(0.0001		)	(0.0009		)	(0.0246		)		(0.0163	)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0491		)		(1.1295	)

Total distributions		(0.0000		)	(0.0227		)	(0.0001		)	(0.0009		)	(0.0737		)		(1.1458	)

Net asset value, end of period		$	8.4818		$	8.3728		$	8.1267		$	6.6041		$	8.3923		$	9.8831

Total return			1.30	%		3.31	%		23.06	%		- -21.30	%		- -14.34	%		1.41	%
Net assets, end of period (in millions)			$1,196			$1,252			$1,283			$705			$995			$1,256
Ratio of expenses to average net assets			1.00	% ⁽¹⁾		1.00	%		0.99	%		0.99	%		0.97	%		0.96	%
Ratio of net investment income (loss) to average net assets			0.08	% ⁽¹⁾		0.27	%		- -0.09	%		0.01	%		0.27	%		0.14	%
Portfolio turnover rate			29	%		81	%		59	%		41	%		51	%		57	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF HIGH INCOME PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target High Income Portfolio had net assets totaling $188,869,474 invested in a diversified portfolio of:

89.96%		Corporate Debt Securities
6.47%		Cash and Cash Equivalents
3.57%		Common and Preferred Stocks, Right and Warrants

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:

Utilities Bonds	$	12.72
Capital Goods Bonds	$	10.64
Consumer Services Bonds	$	10.64
Consumer Nondurables Bonds	$	9.61
Financial Services Bonds	$	8.70
Health Care Bonds	$	7.67
Retail Bonds	$	6.54
Cash and Cash Equivalents	$	6.47
Technology Bonds	$	4.51
Common and Preferred Stocks, Right and Warrants	$	3.57
Raw Materials Bonds	$	3.53
Shelter Bonds	$	3.30
Energy Bonds	$	3.26
Multi-Industry Bonds	$	2.83
Consumer Durables Bonds	$	2.62
Business Equipment and Services Bonds	$	2.28
Transportation Bonds	$	1.11

On June 30, 2005, the breakdown of bonds (by ratings) held by the Portfolio was as follows:



BB	8.26	%
B	60.44	%
Below B	20.30	%
Non-rated	0.96	%
Cash and Cash Equivalents and Equities	10.04	%


The Investments of High Income Portfolio
June 30, 2005				(Unaudited)
COMMON STOCKS, RIGHT AND WARRANTS	Shares			Value


Broadcasting - 0.09%
Citadel Broadcasting Corporation*		15,000	$	171,750

Chemicals - Petroleum and Inorganic - 0.27%
UAP Holding Corp.		30,425		503,534

Finance Companies - 0.00%
ONO Finance Plc, Rights (A)*		250		5,000

Health Care - General - 0.07%
Encore Medical Corporation*		25,000		139,500

Hospital Supply and Management - 0.82%
Psychiatric Solutions, Inc.*		15,000		729,825
Triad Hospitals, Inc.*		15,000		819,600
				1,549,425
Multiple Industry - 0.99%
Dollar Financial Corp.*		37,500		402,563
Huntsman Corporation*		37,500		760,125
Mueller Holdings (N.A.), Inc., Warrants (A)*		2,000		700,500
				1,863,188
Petroleum - International - 0.11%
Forest Oil Corporation*		5,000		210,000

Petroleum - Services - 0.31%
BJ Services Company		2,500		131,200
Baker Hughes Incorporated		5,000		255,800
Schlumberger Limited		2,500		189,850
				576,850
Timesharing and Software - 0.32%
Alliance Data Systems Corporation*		15,000		608,400

Utilities - Gas and Pipeline - 0.25%
Williams Companies, Inc. (The)		25,000		475,000

Utilities - Telephone - 0.08%
GT Group Telecom, Inc., Warrants (A)(B)*		300		- -	**
US Unwired Inc.*		25,280		146,624
				146,624

TOTAL COMMON STOCKS, RIGHT AND WARRANTS - 3.31%			$	6,249,271

(Cost: $5,459,282)

PREFERRED STOCKS


Apparel - 0.25%
Anvil Holdings, Inc., 13.0%*	65,627		475,793

Broadcasting - 0.01%
Adelphia Communications Corporation, 13.0%	12,500		9,375

TOTAL PREFERRED STOCKS - 0.26%		$	485,168

(Cost: $1,942,028)


CORPORATE DEBT SECURITIES	Principal Amount in Thousands


Aircraft - 1.21%
Argo-Tech Corporation,
9.25%, 6-1-11	$	200	217,000
BE Aerospace, Inc.,
8.5%, 10-1-10		50	55,250
Bombardier Recreational Products Inc.,
8.375%, 12-15-13		200	213,000
Esterline Technologies Corporation,
7.75%, 6-15-13		750	795,000
L-3 Communications Corporation,
6.125%, 1-15-14		1,000	1,000,000
			2,280,250
Aluminum - 0.16%
Century Aluminum Company,
7.5%, 8-15-14		300	296,250

Beverages - 0.57%
Cott Beverages Inc.,
8.0%, 12-15-11		1,000	1,072,500

Broadcasting - 4.50%
CCH II and CCH II Capital,
10.25%, 9-15-10		1,000	1,011,250
Cablevision Systems Corporation,
7.88%, 4-1-09		1,000	1,002,500

Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corporation:
0.0%, 5-15-11 (C)	1,000		662,500
0.0%, 1-15-12 (C)	500		288,750
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.,
8.0%, 4-30-12 (A)	1,000		995,000
Gray Communications Systems, Inc.,
9.25%, 12-15-11	500		542,500
Insight Communications Company, Inc.,
0.0%, 2-15-11 (C)	1,500		1,503,750
NTL Cable PLC,
8.75%, 4-15-14	375		390,469
Spanish Broadcasting System, Inc.,
9.625%, 11-1-09	2,015		2,113,231
			8,509,950
Business Equipment and Services - 2.28%
Alderwoods Group, Inc.,
7.75%, 9-15-12 (A)	600		636,750
Allied Waste North America, Inc.,
8.5%, 12-1-08	1,000		1,048,750
Carriage Services, Inc.,
7.875%, 1-15-15 (A)	150		158,250
MagnaChip Semiconductor S.A. and MagnaChip Semiconductor Finance Company:
6.66%, 12-15-11 (A)	150		148,500
8.0%, 12-15-14 (A)	150		144,000
Service Corporation International,
7.0%, 6-15-17 (A)	300		308,250
Vertis, Inc.:
9.75%, 4-1-09	150		156,000
10.875%, 6-15-09	1,000		955,000
13.5%, 12-7-09 (A)	1,000		746,250
			4,301,750
Capital Equipment - 2.34%
Case New Holland Inc.,
9.25%, 8-1-11 (A)	2,000		2,100,000
IMCO Recycling Inc.,
10.375%, 10-15-10	775		850,563
Mueller Group, Inc.:
7.96%, 11-1-11	300		307,500
10.0%, 5-1-12	900		945,000
Simmons Company,
0.0%, 12-15-14 (A)(C)	500		225,000
			4,428,063
Chemicals - Petroleum and Inorganic - 1.09%
Compression Polymers Holding Corporation,
10.5%, 7-1-13 (A)	300		300,000
PolyOne Corporation,
10.625%, 5-15-10	500		528,750
Resolution Performance Products LLC and RPP Capital Corporation,
13.5%, 11-15-10	575		618,125
UAP Holding Corp.,
0.0%, 7-15-12 (C)	750		615,000
			2,061,875
Chemicals - Specialty - 1.81%
Compass Minerals International, Inc.:
0.0%, 12-15-12 (C)	1,600		1,400,000
0.0%, 6-1-13 (C)	1,750		1,461,250
Ethyl Corporation,
8.875%, 5-1-10	250		259,062
PQ Corporation,
7.5%, 2-15-13 (A)	300		294,750
			3,415,062
Coal - 0.71%
James River Coal Company,
9.375%, 6-1-12	550		563,750
Southern Star Central Corp.,
8.5%, 8-1-10	750		787,500
			1,351,250
Computers - Peripherals - 2.02%
ASG Consolidated LLC and ASG Finance, Inc.,
0.0%, 11-1-11 (C)	2,325		1,668,188
Activant Solutions Inc.:
9.09%, 4-1-10 (A)	500		517,500
10.5%, 6-15-11	1,500		1,627,500
			3,813,188
Construction Materials - 7.17%
Ames True Temper, Inc.:
7.14063%, 1-15-12	2,500		2,375,000
10.0%, 7-15-12	1,175		945,875
Associated Materials Incorporated,
9.75%, 4-15-12	525		543,375
Brand Services, Inc.,
12.0%, 10-15-12	650		695,500
Builders FirstSource, Inc.,
7.68708%, 2-15-12 (A)	1,200		1,194,000
Interface, Inc.:
7.3%, 4-1-08	1,000		1,020,000
10.375%, 2-1-10	445		489,500
9.5%, 2-1-14	1,250		1,275,000
Jacuzzi Brands, Inc.,
9.625%, 7-1-10	1,750		1,916,250
MAAX Corporation,
9.75%, 6-15-12	500		441,250
Nortek, Inc.,
8.5%, 9-1-14	900		837,000
Ply Gem Industries, Inc.,
9.0%, 2-15-12	1,750		1,478,750
Texas Industries, Inc.,
7.25%, 7-15-13 (A)	75		76,875
WII Components, Inc.,
10.0%, 2-15-12	250		246,250
			13,534,625
Containers - 3.70%
Alltrista Corporation,
9.75%, 5-1-12	250		263,437
Constar International Inc.,
6.64313%, 2-15-12 (A)	400		382,000
Crown European Holdings:
9.5%, 3-1-11	1,000		1,105,000
10.875%, 3-1-13	50		58,750
Graham Packaging Company, L.P. and GPC Capital Corp. I:
8.5%, 10-15-12 (A)	150		151,500
9.875%, 10-15-14 (A)	300		300,750
MDP Acquisitions plc,
9.625%, 10-1-12	900		900,000
Owens-Brockway Glass Container Inc.,
8.75%, 11-15-12	750		826,875
Owens-Illinois, Inc.,
7.35%, 5-15-08	2,500		2,593,750
Pliant Corporation,
11.625%, 6-15-09 (A)	383		409,749
			6,991,811
Defense - 0.72%
Armor Holdings, Inc.,
8.25%, 8-15-13	1,250		1,351,562

Electrical Equipment - 0.83%
Coleman Cable Inc.,
9.875%, 10-1-12 (A)	1,150		1,023,500
Rexnord Corporation,
10.125%, 12-15-12	500		547,500
			1,571,000
Electronic Instruments - 0.56%
Aavid Thermal Technologies, Inc.,
12.75%, 2-1-07	1,000		1,058,750

Finance Companies - 8.70%
CCO Holdings, LLC and CCO Holdings Capital Corp.,
7.535%, 12-15-10 (A)	1,500		1,458,750
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.,
8.375%, 3-15-13	699		774,142
Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp.,
8.75%, 6-15-12	2,500		2,500,000
Goodman Global Holdings, Inc.:
6.62125%, 6-15-12 (A)	150		147,750
7.875%, 12-15-12 (A)	1,100		1,017,500
IWO Escrow Company:
6.89063%, 1-15-12 (A)	150		148,875
0.0%, 1-15-15 (A)(C)	600		393,000
MSW Energy Holdings LLC and MSW Energy Finance Co., Inc.,
8.5%, 9-1-10	300		317,250
NMHG Holding Co.,
10.0%, 5-15-09	1,000		1,050,000
NTK Holdings, Inc.,
0.0%, 3-1-14 (A)(C)	1,529		718,630
Norcraft Companies, L.P. and Norcraft Finance Corp.,
0.0%, 9-1-12 (C)	1,500		1,035,000
Refco Finance Holdings LLC and Refco Finance Inc.,
9.0%, 8-1-12	1,500		1,590,000
Standard Aero Holdings, Inc.,
8.25%, 9-1-14 (A)	750		791,250
Tabletop Holdings, Inc.,
0.0%, 5-15-14 (A)(C)	2,000		700,000
Toll Corp.,
8.25%, 12-1-11	890		956,750
Vanguard Health Holding Company I, LLC and Vanguard Holding Company I, Inc.,
0.0%, 10-1-15 (C)	1,000		710,000
Vanguard Health Holding Company II, LLC and Vanguard Holding Company II, Inc.,
9.0%, 10-1-14	1,000		1,080,000
Xerox Capital Trust I,
8.0%, 2-1-27	1,000		1,035,000
			16,423,897
Food and Related - 3.98%
American Seafoods Group LLC and American Seafoods, Inc.,
10.125%, 4-15-10	860		922,350
Doane Pet Care Company:
9.75%, 5-15-07	1,000		972,500
10.75%, 3-1-10	700		740,250
Gold Kist Inc.,
10.25%, 3-15-14	650		734,500
Merisant Company,
10.25%, 7-15-13 (A)	450		319,500
Pierre Merger Corp.,
9.875%, 7-15-12	1,750		1,806,875
Pinnacle Foods Holding Corporation,
8.25%, 12-1-13	2,250		2,013,750
			7,509,725
Forest and Paper Products - 3.15%
Buckeye Technologies Inc.:
8.0%, 10-15-10	1,250		1,200,000
8.5%, 10-1-13	1,250		1,275,000
Cellu Tissue Holdings, Inc.,
9.75%, 3-15-10	300		304,500
Georgia-Pacific Corporation,
8.875%, 5-15-31	940		1,163,250
Mercer International Inc.,
9.25%, 2-15-13	1,500		1,200,000
Tembec Industries Inc.,
8.625%, 6-30-09	1,000		815,000
			5,957,750
Health Care - General - 3.59%
Ardent Health Services, Inc.,
10.0%, 8-15-13	1,750		2,115,312
Encore Medical IHC, Inc.,
9.75%, 10-1-12	1,500		1,455,000
Eye Care Centers of America, Inc.,
10.75%, 2-15-15 (A)	1,000		895,000
MQ Associates, Inc.,
0.0%, 8-15-12 (C)	1,875		975,000
Medical Device Manufacturing, Inc.,
10.0%, 7-15-12	300		322,500
Universal Hospital Services, Inc.,
10.125%, 11-1-11	1,000		1,010,000
			6,772,812
Homebuilders, Mobile Homes - 0.15%
Technical Olympic USA, Inc.,
7.5%, 3-15-11	300		279,000

Hospital Supply and Management - 4.08%
EGL Acquisition Corp.,
7.625%, 2-1-15 (A)	600		594,000
Psychiatric Solutions, Inc.:
10.625%, 6-15-13	1,467		1,628,370
7.75%, 7-15-15 (A)	1,575		1,575,000
Rural/Metro Corporation,
0.0%, 3-15-16 (A)(C)	1,700		850,000
Rural/Metro Operating Company, LLC and Rural/Metro (Delaware) Inc.,
9.875%, 3-15-15 (A)	375		371,250
US Oncology Holdings, Inc.,
8.62%, 3-15-15 (A)	1,250		1,165,625
US Oncology, Inc.:
9.0%, 8-15-12	250		267,500
10.75%, 8-15-14	150		163,500
United Surgical Partners Holdings, Inc.,
10.0%, 12-15-11	1,000		1,100,000
			7,715,245
Hotels and Gaming - 1.50%
Inn of the Mountain Gods Resort and Casino,
12.0%, 11-15-10	1,250		1,443,750
Pinnacle Entertainment, Inc.,
8.25%, 3-15-12	850		884,000
Station Casinos, Inc.,
6.875%, 3-1-16 (A)	500		513,750
			2,841,500
Household - General Products - 1.36%
JohnsonDiversey, Inc.,
9.625%, 5-15-12	1,060		1,075,900
Southern States Cooperative, Inc.,
10.5%, 11-1-10 (A)	1,500		1,492,500
			2,568,400
Leisure Time Industry - 0.36%
Equinox Holdings, Inc.,
9.0%, 12-15-09	650		671,125

Mining - 0.47%
Compass Minerals Group, Inc.,
10.0%, 8-15-11	818		891,620

Motion Pictures - 2.49%
AMC Entertainment Inc.:
7.51813%, 8-15-10	350		361,812
9.5%, 2-1-11	1,000		981,250
Carmike Cinemas, Inc.,
7.5%, 2-15-14	500		453,125
Cinemark USA, Inc.,
9.0%, 2-1-13	352		361,680
Cinemark, Inc.,
0.0%, 3-15-14 (C)	2,000		1,330,000
LCE Acquisition Corporation,
9.0%, 8-1-14 (A)	1,250		1,209,375
			4,697,242
Motor Vehicle Parts - 0.68%
Collins & Aikman Floorcoverings, Inc.,
9.75%, 2-15-10	1,250		1,293,750

Motor Vehicles - 1.94%
ADESA, Inc.,
7.625%, 6-15-12	300		304,500
Group 1 Automotive, Inc.,
8.25%, 8-15-13	500		505,000
Sonic Automotive, Inc.,
8.625%, 8-15-13	1,250		1,262,500
United Auto Group, Inc.,
9.625%, 3-15-12	1,500		1,601,250
			3,673,250
Multiple Industry - 2.83%
AMR HoldCo, Inc. and EmCare HoldCo, Inc.,
10.0%, 2-15-15 (A)	150		159,750
CBD Media Holdings LLC and CBD Holdings Finance, Inc.,
9.25%, 7-15-12	600		607,500
CBD Media LLC and CBD Finance, Inc.,
8.625%, 6-1-11	1,000		1,030,000
CSC Holdings, Inc.,
6.75%, 4-15-12 (A)	425		399,500
Commercial Vehicle Group, Inc.,
8.0%, 7-1-13 (A)	150		153,000
Dollar Financial Group, Inc.,
9.75%, 11-15-11 (A)	400		412,500
K&F Acquisition, Inc.,
7.75%, 11-15-14	300		306,750
Mueller Holdings (N.A.), Inc.,
0.0%, 4-15-14 (C)	2,500		1,825,000
Viasystems, Inc.,
10.5%, 1-15-11	500		460,000
			5,354,000
Non-Residential Construction - 0.30%
National Waterworks, Inc.,
10.5%, 12-1-12	500		562,500

Petroleum - Domestic - 1.15%
Delta Petroleum Corporation,
7.0%, 4-1-15 (A)	150		141,000
EXCO Resources, Inc.,
7.25%, 1-15-11	900		900,000
Frontier Oil Corporation,
6.625%, 10-1-11	150		154,500
KCS Energy, Inc.,
7.125%, 4-1-12	150		153,000
Stone Energy Corporation,
6.75%, 12-15-14	375		364,688
Whiting Petroleum Corporation,
7.25%, 5-1-12	450		461,250
			2,174,438
Petroleum - Services - 1.40%
Hanover Compressor Company:
0.0%, 3-31-07	1,000		880,000
8.625%, 12-15-10	500		528,750
9.0%, 6-1-14	150		159,750
Parker Drilling Company,
9.625%, 10-1-13	250		281,875
SESI, L.L.C.,
8.875%, 5-15-11	750		800,625
			2,651,000
Publishing - 1.79%
Dex Media, Inc.:
0.0%, 11-15-13 (C)	1,500		1,207,500
8.0%, 11-15-13	1,000		1,062,500
Dex Media West LLC and Dex Media West Finance Co.,
9.875%, 8-15-13	977		1,113,780
			3,383,780
Railroad - 1.11%
Kansas City Southern Railway Company (The),
7.5%, 6-15-09	900		929,250
TFM, S.A. de C.V.,
9.375%, 5-1-12 (A)	1,125		1,170,000
			2,099,250
Restaurants - 0.98%
Carrols Corporation,
9.0%, 1-15-13 (A)	150		151,875
Friendly Ice Cream Corporation,
8.375%, 6-15-12	750		727,500
Landry's Restaurants, Inc.,
7.5%, 12-15-14	1,000		967,500
			1,846,875
Retail - Food Stores - 3.06%
Couche-Tard U.S. L.P. and Couche-Tard Financing Corp.,
7.5%, 12-15-13	945		992,250
Rite Aid Corporation:
7.125%, 1-15-07	1,500		1,503,750
8.125%, 5-1-10	1,000		1,030,000
Roundy's, Inc.,
8.875%, 6-15-12	1,000		1,030,000
Stater Bros. Holdings Inc.:
6.91%, 6-15-10	500		495,000
8.125%, 6-15-12	750		731,250
			5,782,250
Retail - General Merchandise - 0.42%
Interline Brands, Inc.,
11.5%, 5-15-11	325		357,500
NBC Acquisition Corp.,
0.0%, 3-15-13 (C)	600		429,000
			786,500
Retail - Specialty Stores - 2.08%
CSK Auto, Inc.,
7.0%, 1-15-14	350		334,250
FTD, Inc.,
7.75%, 2-15-14	487		477,260
General Nutrition Centers, Inc.,
8.5%, 12-1-10	200		160,000
Jean Coutu Group (PJC) Inc. (The),
7.625%, 8-1-12	1,000		1,032,500
Jo-Ann Stores, Inc.,
7.5%, 3-1-12	1,000		985,000
Nebraska Book Company, Inc.,
8.625%, 3-15-12	1,000		932,500
			3,921,510
Utilities - Electric - 0.08%
Texas Genco LLC and Texas Genco Financing Corp.,
6.875%, 12-15-14 (A)	150		157,875

Utilities - Gas and Pipeline - 1.94%
ANR Pipeline Company,
8.875%, 3-15-10	500		548,464
Northwest Pipeline Corporation,
8.125%, 3-1-10	750		813,750
Southern Natural Gas Company,
8.875%, 3-15-10	1,000		1,096,928
Williams Companies, Inc. (The),
7.5%, 1-15-31	1,110		1,201,575
			3,660,717
Utilities - Telephone - 10.70%
Alamosa (Delaware), Inc.:
0.0%, 7-31-09 (C)	1,000		1,102,500
8.5%, 1-31-12	750		786,562
American Tower Corporation,
9.375%, 2-1-09	1,085		1,137,894
Centennial Communications Corp., Centennial Cellular Operating Co. LLC and Centennial Puerto Rico Operations Corp.,
8.125%, 2-1-14	300		319,500
MCI, Inc.:
6.908%, 5-1-07	281		284,864
7.688%, 5-1-09	314		326,953
8.735%, 5-1-14	240		269,100
Nextel Communications, Inc.:
6.875%, 10-31-13	1,500		1,603,125
7.375%, 8-1-15	750		810,000
Nextel Partners, Inc.,
8.125%, 7-1-11	1,750		1,898,750
Qwest Capital Funding, Inc.,
7.75%, 8-15-06	1,000		1,022,500
Qwest Services Corporation and Qwest Communications International Inc.:
13.5%, 12-15-10	1,500		1,732,500
14.0%, 12-15-14	1,500		1,818,750
SBA Communications Corporation,
8.5%, 12-1-12	1,100		1,185,250
SBA Communications Corporation and SBA Telecommunications, Inc.,
0.0%, 12-15-11 (C)	783		720,360
SpectraSite, Inc.,
8.25%, 5-15-10	2,000		2,120,000
Tenaska Alabama Partners, L.P.,
7.0%, 6-30-21 (A)	450		455,625
Triton PCS, Inc.:
8.75%, 11-15-11	950		672,125
8.5%, 6-1-13	600		553,500
US Unwired Inc.:
7.66%, 6-15-10	400		411,000
10.0%, 6-15-12	575		639,688
Ubiquitel Operating Company,
9.875%, 3-1-11	300		329,250
			20,199,796

TOTAL CORPORATE DEBT SECURITIES - 89.96%		$	169,913,693

(Cost: $168,034,084)


SHORT-TERM SECURITIES


Capital Equipment - 1.05%
Deere (John) Capital Corporation,
3.32%, 7-27-05	2,000		1,995,204

Food and Related - 1.06%
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
3.33%, 7-13-05	2,000		1,997,780

Forest and Paper Products - 1.35%
Sonoco Products Co.,
3.44%, 7-1-05	2,559		2,559,000

Health Care - General - 2.29%
Baxter International Inc.:
3.3%, 7-5-05	3,000		2,998,900
3.32%, 7-5-05	1,323		1,322,512
			4,321,412
Railroad - 1.59%
Union Pacific Corporation,
3.17%, 7-8-05	3,000		2,998,151

TOTAL SHORT-TERM SECURITIES - 7.34%		$	13,871,547

(Cost: $13,871,547)

TOTAL INVESTMENT SECURITIES - 100.87%		$	190,519,679

(Cost: $189,306,941)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.87%)			(1,650,205	)


NET ASSETS - 100.00%		$	188,869,474


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
**Not shown due to rounding.
(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers At June 30, 2005, the total value of these securities amounted to $28,381,004 or 15.03% of net assets.
(B)Security valued in good faith by the Valuation Committee of the Board of Directors. See Note 1 to financial statements.
(C)The security does not bear interest for an initial period of time and subsequently becomes interest bearing.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      HIGH INCOME PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $189,307) (Notes 1 and 3)	$	190,520
Receivables:
Dividends and interest		2,963
Portfolio shares sold		7
Prepaid and other assets		3

Total assets		193,493

LIABILITIES
Payable for investment securities purchased		4,500
Payable to Portfolio shareholders		70
Accrued accounting services fee (Note 2)		6
Due to custodian		4
Accrued management fee (Note 2)		3
Accrued shareholder servicing (Note 2)		2
Accrued service fee (Note 2)		1
Other		38

Total liabilities		4,624

Total net assets	$	188,869

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	55
Additional paid-in capital		215,725
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		6,816
Accumulated undistributed net realized loss on investment transactions		(34,940	)
Net unrealized appreciation in value of investments		1,213

Net assets applicable to outstanding units of capital	$	188,869

Net asset value, redemption and offering price per share	$	3.4207

Capital shares outstanding		55,213
Capital shares authorized		120,000

See Notes to Financial Statements.

Statement of Operations
      HIGH INCOME PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	7,712
Dividends		8

Total income		7,720

Expenses (Note 2):
Investment management fee		587
Service fee		235
Accounting services fee		34
Audit fees		9
Custodian fees		7
Legal fees		3
Shareholder servicing		3
Other		26

Total expenses		904

Net investment income		6,816

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		1,518
Unrealized depreciation in value of investments during the period	(8,781		)

Net loss on investments	(7,263		)

Net decrease in net assets resulting from operations	$	(447	)

See Notes to Financial Statements.

Statement of Changes in Net Assets
      HIGH INCOME PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended			For the fiscal year ended
	6-30-05			12-31-04

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	6,816		$	12,355
Realized net gain on investments		1,518			3,691
Unrealized appreciation (depreciation)		(8,781	)		555

Net increase (decrease) in net assets resulting from operations		(447	)		16,601

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(12,355	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(12,355	)

Capital share transactions ⁽²⁾		(292	)		20,894

Total increase (decrease)		(739	)		25,140
NET ASSETS
Beginning of period		189,608			164,468

End of period	$	188,869		$	189,608

Undistributed net investment income (loss)	$	6,816		$	(-	)*


(1)See "Financial Highlights" on page 110.

(2) Shares issued from sale of shares		3,297			8,091
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			3,605
Shares redeemed		(3,402	)		(5,656	)

Increase (decrease) in outstanding capital shares		(105	)		6,040

Value issued from sale of shares	$	11,248		$	27,927
Value issued from reinvestment of dividend and/or capital gains distribution		- -			12,355
Value redeemed		(11,540	)		(19,388	)

Increase (decrease) in outstanding capital	$	(292	)	$	20,894

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      HIGH INCOME PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)



	For the six months ended					For the fiscal year ended December 31,
	6-30-05					2004			2003			2002			2001			2000
Net asset value, beginning of period		$	3.4276			$	3.3375		$	2.9986		$	3.3261		$	3.3542		$	4.1691

Income (loss) from investment operations:
Net investment income			0.1235				0.2391			0.2529			0.2602			0.3346			0.4107
Net realized and unrealized gain (loss) on investments		(0.1304		)			0.0901			0.3389		(0.3275		)	(0.0281		)	(0.8149		)

Total from investment operations		(0.0069		)			0.3292			0.5918		(0.0673		)		0.3065		(0.4042		)

Less distributions from:
Net investment income		(0.0000		)	(0.2391			)	(0.2529		)	(0.2602		)	(0.3346		)	(0.4107		)
Capital gains		(0.0000		)	(0.0000			)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)

Total distributions		(0.0000		)	(0.2391			)	(0.2529		)	(0.2602		)	(0.3346		)	(0.4107		)

Net asset value, end of period		$	3.4207			$	3.4276		$	3.3375		$	2.9986		$	3.3261		$	3.3542

Total return			- -0.20	%			9.86	%		19.74	%		- -2.02	%		9.18	%		- -9.73	%
Net assets, end of period (in millions)			$189				$190			$164			$128			$116			$102
Ratio of expenses to average net assets			0.96	%⁽¹⁾			0.96	%		0.95	%		0.95	%		0.93	%		0.96	%
Ratio of net investment income to average net assets			7.25	%⁽¹⁾			7.13	%		7.99	%		8.42	%		9.60	%		10.02	%
Portfolio turnover rate			24	%			83	%		119	%		85	%		194	%		119	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF INTERNATIONAL GROWTH PORTFOLIO
Portfolio Highlights

On June 30, 2005, W&R Target International Growth Portfolio had net assets totaling $179,430,248 invested in a diversified portfolio of:


92.78%		Common Stocks
7.22%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio was invested by geographic region and by industry, respectively, as follows:


Europe	$	66.42
Pacific Basin	$	20.38
Cash and Cash Equivalents	$	7.22
Canada	$	2.17
Other	$	2.13
Mexico	$	1.68


Financial Services Stocks	$	24.70
Utilities Stocks	$	10.66
Capital Goods Stocks	$	10.29
Energy Stocks	$	9.91
Consumer Goods Stocks	$	8.71
Health Care Stocks	$	7.29
Cash and Cash Equivalents	$	7.22
Technology Stocks	$	5.93
Business Equipment and Services Stocks	$	5.10
Retail Stocks	$	3.56
Consumer Services Stocks	$	2.89
Raw Materials Stocks	$	2.42
Miscellaneous Stocks	$	1.32


The Investments of International Growth Portfolio
June 30, 2005				(Unaudited)
COMMON STOCKS		Shares		Value


Austria - 4.04%
Australia and New Zealand Banking Group Limited (A)		62,500	$	1,034,756
Erste Bank der oesterreichischen Sparkassen AG (A)		44,100		2,207,909
Raiffeisen International Bank-Holding AG (A)*		34,500		2,204,918
Westpac Banking Corporation (A)		118,600		1,801,052
				7,248,635
Belgium - 1.16%
KBC Group NV (A)		26,300		2,078,385

Brazil - 0.29%
Gol Linhas Aereas Inteligentes S.A.		17,500		526,050

Canada - 2.17%
EnCana Corporation (A)		63,600		2,508,805
Shoppers Drug Mart Corporation (A)(B)		39,700		1,377,122
				3,885,927
France - 8.75%
BNP Paribas (A)		25,000		1,715,458
France Telecom (A)		60,700		1,774,773
Lafarge (A)		13,000		1,185,451
Pernod Ricard (A)		6,500		1,038,352
Sanofi-Aventis (A)		24,400		2,005,011
Sanofi-Aventis (A)(B)		7,000		575,208
Total S.A. (A)		17,300		4,067,954
VINCI (A)		40,000		3,330,470
				15,692,677
Germany - 9.72%
Allianz Aktiengesellschaft, Registered Shares (A)		20,900		2,407,911
BASF Aktiengesellschaft (A)		26,700		1,777,179
Bayerische Hypo- und Vereinsbank AG (A)*		104,800		2,726,823
Continental Aktiengesellschaft (A)		15,600		1,125,196
Deutsche Telekom AG, Registered Shares (A)		125,000		2,314,507
E.ON AG (A)		21,100		1,881,435
Fresenius AG (A)		4,700		538,648
SAP Aktiengesellschaft (A)		9,800		1,711,392
Siemens AG (A)		40,470		2,958,198
				17,441,289
Greece - 1.16%
Alpha Bank (A)(B)		78,000		2,080,479

Ireland - 4.24%
Anglo Irish Bank Corporation plc (Great Britian) (A)		276,546		3,430,429
Anglo Irish Bank Corporation plc (Ireland) (A)		200,000		2,480,910
CRH public limited company (A)		64,600		1,701,173
				7,612,512
Israel - 0.21%
VIZRT Ltd. (A)(B)*		60,000		384,844

Italy - 3.76%
Assicurazioni Generali SpA (A)		35,200		1,099,055
Banco Popolare di Verona e Novara S.c. a r.l. (A)		85,000		1,448,367
Eni S.p.A. (A)		124,500		3,210,776
Saipem S.p.A. (A)		72,800		981,462
				6,739,660
Japan - 19.09%
ACOM CO., LTD. (A)		18,900		1,211,604
Canon Inc. (A)		50,000		2,632,765
CREDIT SAISON CO., LTD. (A)		54,000		1,796,592
Dentsu Inc. (A)*		365		901,722
Honda Motor Co., Ltd. (A)		21,100		1,040,637
Hoya Corporation (A)		15,600		1,800,379
INPEX Corporation (A)(B)		106		600,198
Japan Tobacco Inc. (A)		145		1,934,902
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		200		1,696,871
Mitsubishi Corporation (A)		182,000		2,474,583
Mizuho Financial Group, Inc. (A)		195		882,608
Nihon Densan Kabushiki Kaisha (A)		17,600		1,862,988
Nomura Holdings, Inc. (A)		68,000		813,597
ORIX Corporation (A)		14,500		2,175,458
SMC Corporation (A)		17,100		1,865,567
Sega Sammy Holdings Inc. (A)		35,000		2,145,884
Shinsei Bank, Limited (A)(B)		257,000		1,385,682
TDK Corporation (A)*		13,000		886,124
Taisei Corporation (A)		240,000		809,305
Tokyo Electric Power Company, Incorporated (The) (A)		37,400		891,921
Tokyo Gas Co., Ltd. (A)		441,000		1,650,122
Toyota Motor Corporation (A)		77,900		2,788,414
				34,247,923
Mexico - 1.68%
Cemex, S.A. de C.V., ADR		47,695		2,023,222
Grupo Televisa, S.A., GDR		16,000		993,440
				3,016,662
Norway - 0.65%
Statoil ASA (A)		57,200		1,168,562

Russia - 0.99%
OAO LUKOIL, ADR		48,000		1,773,600

Singapore - 0.48%
DBS Group Holdings Ltd (A)		102,500		869,108

South Korea - 0.81%
LG Chem, Ltd. (A)*		40,000		1,461,576

Spain - 2.65%
Enagas, S.A. (A)		114,400		2,028,247
Fadesa Inmobiliaria, S.A. (A)		32,000		915,879
Gestevision Telecinco, S.A. (A)		39,000		913,749
Telefonica, S.A. (A)		54,600		894,681
				4,752,556
Switzerland - 11.54%
Baloise-Holding, Registered Shares (A)		17,300		863,920
Compagnie Financiere Richemont SA (A)		41,000		1,378,823
Holcim Ltd, Registered Shares (A)		40,500		2,464,888
Nestle S.A., Registered Shares (A)		10,900		2,789,638
Novartis AG, Registered Shares (A)		104,000		4,954,120
Roche Holdings AG, Genussschein (A)		22,000		2,784,332
Swatch Group Ltd (The), Bearer Shares (A)*		7,800		1,095,506
UBS AG (A)		44,450		3,468,321
Zurich Financial Services, Registered Shares (A)		5,300		913,109
				20,712,657
Turkey - 0.37%
Turkiye Garanti Bankasi Anonim Sirketi (A)		155,000		669,861

United Kingdom - 18.41%
ARM Holdings plc (A)*		437,000		886,717
BAE SYSTEMS plc (A)		185,000		951,303
BP p.l.c. (A)		428,000		4,455,385
British American Tobacco p.l.c. (A)		46,000		886,820
Capita Group Plc (The) (A)(B)		215,610		1,421,615
Carnival plc (A)		57,800		3,279,753
HBOS plc (A)*		40,000		616,703
IG Group Holdings plc (A)(B)*		194,000		509,219
NEXT plc (A)		64,500		1,743,871
Reckitt Benckiser plc (A)		91,322		2,691,576
Royal Bank of Scotland Group plc (The) (A)		106,659		3,221,962
Smith & Nephew plc (A)		226,000		2,231,132
Smiths Group plc (A)		56,000		922,080
tesco plc (A)		572,000		3,266,717
Vodafone Group Plc (A)	1,732,000			4,220,385
WPP Group plc (A)		167,700		1,726,189
				33,031,427
United States - 0.61%
Inco Limited		29,000		1,094,750

TOTAL COMMON STOCKS - 92.78%			$	166,489,140

(Cost: $140,531,175)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Banks - 3.23%
Royal Bank of Scotland PLC (The),
3.285%, 7-12-05	$	5,800		5,794,178

Finance Companies - 1.12%
Unilever Capital Corporation,
3.27%, 7-8-05		2,000		1,998,729

Household - General Products - 1.37%
Fortune Brands Inc.,
3.41%, 7-1-05		2,462		2,462,000

Security and Commodity Brokers - 1.14%
UBS Finance Delaware LLC,
3.39%, 7-1-05		2,045		2,045,000

TOTAL SHORT-TERM SECURITIES - 6.86%			$	12,299,907

(Cost: $12,299,907)

TOTAL INVESTMENT SECURITIES - 99.64%			$	178,789,047

(Cost: $152,831,082)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.36%				641,201


NET ASSETS - 100.00%			$	179,430,248


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Listed on an exchange outside the United States.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $8,334,367 or 4.64% of net assets.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      INTERNATIONAL GROWTH PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts) (Unaudited)


ASSETS
Investment securities - at value (cost - $152,831) (Notes 1 and 3)	$	178,789
Cash		15
Receivables:
Dividends and interest		597
Investment securities sold		201
Portfolio shares sold		17
Prepaid and other assets		3

Total assets		179,622

LIABILITIES
Payable to Portfolio shareholders		136
Payable for investment securities purchased		14
Accrued accounting services fee (Note 2)		6
Accrued management fee (Note 2)		4
Accrued shareholder servicing (Note 2)		2
Accrued service fee (Note 2)		1
Other		29

Total liabilities		192

Total net assets	$	179,430

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	28
Additional paid-in capital		213,100
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,694
Accumulated undistributed net realized loss on investment transactions		(61,340	)
Net unrealized appreciation in value of investments		25,948

Net assets applicable to outstanding units of capital	$	179,430

Net asset value, redemption and offering price per share	$	6.5228

Capital shares outstanding		27,508
Capital shares authorized		60,000

See Notes to Financial Statements.

Statement of Operations
      INTERNATIONAL GROWTH PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands) (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $243)	$	2,314
Interest and amortization		148

Total income		2,462

Expenses (Note 2):
Investment management fee		766
Service fee		225
Accounting services fee		33
Custodian fees		32
Audit fees		11
Shareholder servicing		3
Legal fees		2
Other		27

Total expenses		1,099

Net investment income		1,363

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		9,040
Realized net gain on foreign currency transactions		331

Realized net gain on investments		9,371
Unrealized depreciation in value of investments during the period	(14,424		)

Net loss on investments		(5,053	)

Net decrease in net assets resulting from operations	$	(3,690	)

See Notes to Financial Statements.

Statement of Changes in Net Assets
      INTERNATIONAL GROWTH PORTFOLIO
      (In Thousands) (Unaudited)


	For the six months ended			For the fiscal year ended
	6-30-05			12-31-04

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	1,363		$	878
Realized net gain on investments		9,371			10,714
Unrealized appreciation (depreciation)		(14,424	)		11,550

Net increase (decrease) in net assets resulting from operations		(3,690	)		23,142

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(1,138	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(1,138	)

Capital share transactions ⁽²⁾		(3,610	)		(4,902	)

Total increase (decrease)		(7,300	)		17,102
NET ASSETS
Beginning of period		186,730			169,628

End of period	$	179,430		$	186,730

Undistributed net investment income (loss)	$	1,694		$	(-	)*


(1)See "Financial Highlights" on page 120.

(2) Shares issued from sale of shares		1,643			3,185
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			171
Shares redeemed		(2,200	)		(4,178	)

Decrease in outstanding capital shares		(557	)		(822	)

Value issued from sale of shares	$	10,739		$	19,125
Value issued from reinvestment of dividend and/or capital gains distribution		- -			1,138
Value redeemed		(14,349	)		(25,165	)

Decrease in outstanding capital	$	(3,610	)	$	(4,902	)

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      INTERNATIONAL GROWTH PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	6.6534		$	5.8722		$	4.7683		$	5.8536		$	7.8610		$	11.9354

Income (loss) from investment operations:
Net investment income			0.0616			0.0367			0.0833			0.0227			0.0498			0.0298
Net realized and unrealized gain (loss) on investments		(0.1922		)		0.7853			1.1039		(1.0853		)	(1.7977		)		(2.8531	)

Total from investment operations		(0.1306		)		0.8220			1.1872		(1.0626		)	(1.7479		)		(2.8233	)

Less distributions from:
Net investment income		(0.0000		)	(0.0408		)	(0.0833		)	(0.0227		)	(0.0419		)		(0.0186	)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.2176		)		(1.2325	)

Total distributions		(0.0000		)	(0.0408		)	(0.0833		)	(0.0227		)	(0.2595		)		(1.2511	)

Net asset value, end of period			6.5228			6.6534			5.8722			4.7683			5.8536			7.8610

Total return			- -1.96	%		14.00	%		24.90	%		- -18.15	%		- -22.23	%		- -23.66	%
Net assets, end of period (in millions)			$179			$187			$170			$139			$187			$266
Ratio of expenses to average net assets			1.22	% ⁽¹⁾		1.20	%		1.24	%		1.30	%		1.25	%		1.23	%
Ratio of net investment income to average net assets			1.51	% ⁽¹⁾		0.59	%		1.70	%		0.41	%		0.71	%		0.31	%
Portfolio turnover rate			39	%		81	%		131	%		116	%		100	%		117	%

(1) Annualized.

See Notes to Financial Statements.

SUMMARY OF INTERNATIONAL VALUE PORTFOLIO

Portfolio Highlights

On June 30, 2005 W&R Target International Value Portfolio had net assets totaling $417,705,845 invested in a diversified portfolio of:


95.42%		Common Stocks
4.58%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio was invested by geographic region and by industry, respectively, as follows:


Europe	$	49.20
Pacific Basin	$	26.56
Scandinavia	$	11.62
Cash and Cash Equivalents	$	4.58
Canada	$	3.34
Other	$	1.58
Middle East	$	1.15
Mexico	$	1.08
Africa	$	0.89


Utilities Stocks	$	15.19
Financial Services Stocks	$	11.78
Health Care Stocks	$	9.93
Technology Stocks	$	8.82
Raw Materials Stocks	$	6.30
Multi-Industry Stocks	$	5.75
Energy Stocks	$	5.43
Shelter Stocks	$	5.30
Consumer Nondurables Stocks	$	5.02
Miscellaneous Stocks	$	4.80
Retail Stocks	$	4.60
Cash and Cash Equivalents	$	4.58
Consumer Durables Stocks	$	4.28
Consumer Services Stocks	$	4.14
Capital Goods Stocks	$	4.08


The Investments of International Value Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares		Value


Australia - 3.42%
Iluka Resources Limited (A)	911,455	$	5,224,311
National Australia Bank Limited (A)	233,800		5,474,313
Qantas Airways Limited (A)	857,600		2,199,953
Qantas Airways Limited (A)(B)	545,600		1,399,597
			14,298,174
Bermuda - 1.58%
ACE Limited	68,900		3,090,165
XL Capital Ltd, Class A	47,300		3,520,066
			6,610,231
Canada - 3.34%
BCE Inc. (A)	138,000		3,266,405
Barrick Gold Corporation (A)	276,200		6,898,237
Domtar Inc. (A)	510,680		3,776,331
			13,940,973
China - 1.05%
China Telecom Corporation Limited (A)	8,936,000		3,219,766
China Telecom Corporation Limited (A)(B)	3,240,000		1,167,417
			4,387,183
Denmark - 2.82%
Vestas Wind Systems A/S (A)*	709,667		11,785,132

Finland - 2.83%
Metso Corporation (A)	34,830		759,566
Stora Enso Oyj, Class R (A)	374,700		4,797,627
Stora Enso Oyj, Class R (A)	71,073		905,220
UPM-Kymmene Corporation (A)	279,540		5,368,810
			11,831,223
France - 4.66%
AXA (A)	227,853		5,699,705
SUEZ (A)	82,200		2,231,301
Sanofi-Aventis (A)	78,000		6,409,461
Total S.A. (A)	21,717		5,106,576
			19,447,043
Germany - 5.01%
Bayer Aktiengesellschaft (A)	125,900		4,208,299
Deutsche Post AG (A)	241,000		5,629,003
E.ON AG (A)	52,900		4,716,963
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)	30,570		3,259,331
Volkswagen Aktiengesellschaft (A)	88,735		3,103,487
			20,917,083
Hong Kong - 2.97%
Bank of East Asia, Limited (The) (A)	896,000		2,646,146
Cheung Kong (Holdings) Limited (A)	485,000		4,727,673
Hutchison Whampoa Limited, Ordinary Shares (A)	556,100		5,027,155
			12,400,974
Israel - 1.15%
Check Point Software Technologies Ltd.*	241,410		4,788,367

Italy - 1.49%
Eni S.p.A. (A)	241,500		6,228,131

Japan - 7.67%
Hitachi, Ltd. (A)	702,000		4,266,054
KDDI CORPORATION (A)	1,067		4,935,272
Konica Minolta Holdings, Inc. (A)	251,000		2,344,568
Nintendo Co., Ltd. (A)	35,400		3,702,461
Nippon Telegraph and Telephone Corporation (A)	1,179		5,049,364
Nomura Holdings, Inc. (A)	69,500		831,544
Ono Pharmaceutical Co., Ltd. (A)	16,300		773,041
Sony Corporation (A)	175,700		6,051,519
Takeda Chemical Industries, Ltd. (A)	82,200		4,076,278
			32,030,101
Mexico - 1.08%
Telefonos de Mexico, S.A. de C.V., ADR	238,840		4,511,688

Netherlands - 6.44%
Akzo Nobel N.V. (A)	183,880		7,250,079
ING Groep N.V., Certicaaten Van Aandelen (A)	251,394		7,110,019
Koninklijke Philips Electronics N.V., Ordinary Shares (A)	199,110		5,036,125
Reed Elsevier NV (A)	398,600		5,557,084
Wolters Kluwer nv, Certicaaten Van Aandelen (A)	101,000		1,933,682
			26,886,989
Norway - 2.09%
Norske Skogindustrier ASA (A)	159,666		2,632,716
Telenor ASA (A)	746,700		5,970,446
Telenor ASA (A)(B)	13,700		109,542
			8,712,704
Portugal - 0.77%
Portugal Telecom, SGPS, S.A., Ordinary Shares (A)	337,470		3,201,905

Singapore - 1.66%
DBS Group Holdings Ltd (A)	300,000		2,543,730
Venture Corporation Limited (A)	465,000		4,411,503
			6,955,233
South Africa - 0.89%
Sappi Limited (A)*	333,681		3,702,271

South Korea - 6.73%
KT Corporation, ADR	329,160		7,076,940
Kookmin Bank, ADR*	99,010		4,512,876
POSCO, ADR	62,140		2,732,296
SK Telecom Co., Ltd., ADR	184,530		3,764,412
Samsung Electronics Co., Ltd., GDR (B)	41,990		10,046,107
			28,132,631
Spain - 3.06%
Gamesa Corporacion Tecnologica, S.A. (A)*	54,800		743,436
Iberdrola, S.A. (A)	116,700		3,081,646
Repsol YPF, S.A. (A)	202,000		5,172,782
Telefonica, S.A., ADR	77,855		3,807,131
			12,804,995
Sweden - 3.88%
ForeningsSparbanken AB (A)	207,200		4,548,629
Nordea Bank AB, Finnish Depositary Receipts (A)	698,900		6,301,275
Securitas AB, Class B (A)	320,000		5,345,485
			16,195,389
Switzerland - 3.48%
Nestle S.A., Registered Shares (A)	31,100		7,959,426
Swiss Reinsurance Company, Registered Shares (A)	50,480		3,103,795
UBS AG (A)	44,400		3,464,419
			14,527,640
Taiwan - 3.06%
Chunghwa Telecom Co., Ltd., ADR	202,400		4,337,432
Compal Electronics Inc., GDR	422,600		2,101,928
Compal Electronics Inc., GDR (B)	376,611		1,873,188
Lite-On Technology Corporation, GDR	390,000		4,490,187
			12,802,735
United Kingdom - 24.29%
AMVESCAP PLC (A)	340,700		2,032,739
BAE SYSTEMS plc (A)	1,338,200		6,881,264
BP p.l.c. (A)	591,000		6,152,178
Boots Group PLC (A)	415,800		4,536,982
British Sky Broadcasting Group plc (A)	579,500		5,476,981
Cadbury Schweppes plc (A)	407,800		3,894,393
Compass Group PLC (A)	2,448,000		10,285,361
GlaxoSmithKline plc (A)	273,900		6,629,987
Lloyds TSB Group plc (A)	457,600		3,878,041
Pearson plc (A)	366,900		4,322,239
Rentokil Initial plc (A)	1,912,660		5,474,493
Rolls-Royce plc (A)*	1,244,600		6,405,531
Royal Bank of Scotland Group plc (The) (A)	159,450		4,816,676
"Shell" Transport and Trading Company p.l.c. (The) (A)	632,900		6,154,606
Shire Pharmaceuticals Group plc (A)	446,700		4,898,157
Smiths Group plc (A)	275,300		4,533,014
Unilever PLC (A)	703,800		6,790,477
Vodafone Group Plc (A)	1,591,700		3,878,515
Wm MORRISON SUPERMARKETS PLC (A)	1,325,310		4,416,678
			101,458,312

TOTAL COMMON STOCKS - 95.42%		$	398,557,107

(Cost: $325,469,931)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 0.96%
Unilever Capital Corporation,
3.27%, 7-8-05	$	4,000		3,997,457

Food and Related - 1.19%
Wm. Wrigley Jr. Company,
3.25%, 7-14-05		5,000		4,994,132

Security and Commodity Brokers - 2.09%
UBS Finance Delaware LLC,
3.39%, 7-1-05		8,732		8,732,000

TOTAL SHORT-TERM SECURITIES - 4.24%			$	17,723,589

(Cost: $17,723,589)

TOTAL INVESTMENT SECURITIES - 99.66%			$	416,280,696

(Cost: $343,193,520)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.34%				1,425,149


NET ASSETS - 100.00%			$	417,705,845


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Listed on an exchange outside the United States.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $14,595,851 or 3.49% of total investments.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      INTERNATIONAL VALUE PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (cost - $343,194) (Notes 1 and 3)	$	416,281
Cash		241
Receivables:
Investment securities sold		2,718
Dividends and interest		1,380
Portfolio shares sold		206
Prepaid and other assets		5

Total assets		420,831

LIABILITIES
Payable for investment securities purchased		2,742
Payable to Portfolio shareholders		321
Accrued accounting services fee (Note 2)		10
Accrued management fee (Note 2)		10
Accrued service fee (Note 2)		3
Accrued shareholder servicing (Note 2)		3
Other		36

Total liabilities		3,125

Total net assets	$	417,706

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	22
Additional paid-in capital		318,060
Accumulated undistributed income:
Accumulated undistributed net investment income		6,681
Accumulated undistributed net realized gain on investment transactions		19,867
Net unrealized appreciation in value of investments		73,076

Net assets applicable to outstanding units of capital	$	417,706

Net asset value, redemption and offering price per share	$	19.4076

Capital shares outstanding		21,523
Capital shares authorized		60,000

See Notes to Financial Statements.

Statement of Operations
      INTERNATIONAL VALUE PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $768)	$	7,399
Interest and amortization		248

Total income		7,647

Expenses (Note 2):
Investment management fee		1,723
Service fee		507
Accounting services fee		62
Custodian fees		47
Audit fees		15
Shareholder servicing		6
Legal fees		5
Other		50

Total expenses		2,415

Net investment income		5,232

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		19,343
Realized net loss on foreign currency transactions		(102	)

Realized net gain on investments	19,241
Unrealized depreciation in value of investments during the period	(	19,435	)

Net loss on investments		(194	)

Net increase in net assets resulting from operations	$	5,038

See Notes to Financial Statements.

Statement of Changes in Net Assets
      INTERNATIONAL VALUE PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


				For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income	$	5,232		$	5,685
Realized net gain on investments		19,241			23,560
Unrealized appreciation (depreciation)		(19,435	)		44,612

Net increase in net assets resulting from operations		5,038			73,857

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(3,800	)
Realized gains on investment transactions		(-	)		(3,000	)

		(-	)		(6,800	)

Capital share transactions ⁽²⁾		11,907			9,580

Total increase		16,945			76,637
NET ASSETS
Beginning of period		400,761			324,124

End of period	$	417,706		$	400,761

Undistributed net investment income	$	6,681		$	1,551


(1)See "Financial Highlights" on page 130.

(2) Shares issued from sale of shares		1,802			2,549
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			355
Shares redeemed		(1,187	)		(2,388	)

Increase in outstanding capital shares		615			516

Value issued from sale of shares	$	34,775		$	43,700
Value issued from reinvestment of dividend and/or capital gains distribution		- -			6,800
Value redeemed		(22,868	)		(40,920	)

Increase in outstanding capital	$	11,907		$	9,580

See Notes to Financial Statements.

Financial Highlights
      INTERNATIONAL VALUE PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	19.1681		$	15.8947		$	11.0000		$	13.4000		$	17.6000		$	19.4000

Income (loss) from investment operations:
Net investment income			0.2410			0.2759			0.2558			0.2000			0.3000			0.3000
Net realized and unrealized gain (loss) on investments			(0.0015	)		3.3285			4.8829			(2.6000	)		(2.3000	)		(0.2000	)

Total from investment operations			0.2395			3.6044			5.1387			(2.4000	)		(2.0000	)		0.1000

Less distributions from:
Net investment income			(0.0000	)		(0.1850	)		(0.2440	)		(0.0000	)		(0.6000	)		(0.3000	)
Capital gains			(0.0000	)		(0.1460	)		(0.0000	)		(0.0000	)		(1.6000	)		(1.6000	)

Total distributions			(0.0000	)		(0.3310	)		(0.2440	)		(0.0000	)		(2.2000	)		(1.9000	)

Net asset value, end of period		$	19.4076		$	19.1681		$	15.8947		$	11.0000		$	13.4000		$	17.6000

Total return			1.25	%		22.68	%		46.85	%		- -17.82	%		- -11.21	%		0.81	%
Net assets, end of period (in millions)			$418			$401			$324			$223			$279			$343
Ratio of expenses to average net assets			1.19	% ⁽¹⁾		1.19	%		1.07	%		0.99	%		0.97	%		1.07	%
Ratio of net investment income to average net assets			2.58	% ⁽¹⁾		1.65	%		2.03	%		1.87	%		1.60	%		2.10	%
Portfolio turnover rate			12	%		31	%		35	%		33	%		39	%		47	%

(1) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF LIMITED-TERM BOND PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Limited-Term Bond Portfolio had net assets totaling $77,106,834 invested in a diversified portfolio of:


49.31%		Corporate Debt Securities
46.46%		U.S. Government and Government Agency Obligations
4.23%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


U.S. Government and Government Agency Obligations	$	46.46
Utilities Bonds	$	9.39
Multi-Industry Bonds	$	9.10
Financial Services Bonds	$	6.48
Energy Bonds	$	5.79
Miscellaneous Bonds	$	5.60
Cash and Cash Equivalents	$	4.23
Transportation Bonds	$	3.90
Consumer Nondurables Bonds	$	3.55
Technology Bonds	$	2.76
Business Equipment and Services Bonds	$	2.74

On June 30, 2005, the breakdown of bonds (by ratings) held by the Portfolio was as follows:



AAA	49.04	%
A	21.34	%
BBB	20.82	%
BB	4.57	%
Cash and Cash Equivalents	4.23	%


The Investments of Limited-Term Bond Portfolio
June 30, 2005			(Unaudited)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands			Value


Aircraft - 2.76%
Raytheon Company,
6.75%, 8-15-07	$	2,030	$	2,129,628

Banks - 1.91%
First Union Corporation,
6.875%, 9-15-05		1,460		1,468,783

Business Equipment and Services - 2.74%
USA Waste Services, Inc.,
7.125%, 10-1-07		2,000		2,115,770

Capital Equipment - 2.32%
John Deere Capital Corporation,
5.125%, 10-19-06		1,766		1,791,301

Chemicals - Petroleum and Inorganic - 1.94%
Monsanto Company,
4.0%, 5-15-08		1,500		1,493,033

Finance Companies - 4.57%
Ford Motor Credit Company,
6.875%, 2-1-06		2,000		2,019,990
General Motors Acceptance Corporation,
6.625%, 10-15-05		1,500		1,507,175
				3,527,165
Food and Related - 1.95%
Kellogg Company,
4.875%, 10-15-05		1,500		1,504,794

Household - General Products - 1.60%
CPC International Inc.,
6.15%, 1-15-06		1,218		1,230,023

Leisure Time Industry - 1.34%
Brunswick Corporation,
6.75%, 12-15-06		1,000		1,034,433

Multiple Industry - 9.10%
General Electric Capital Corporation,
2.85%, 1-30-06		2,000		1,989,960
Honeywell International Inc.,
6.875%, 10-3-05		400		402,874
Household Finance Corporation,
6.5%, 1-24-06		1,850		1,876,749
Kansas City Power & Light Company,
7.125%, 12-15-05		700		710,397
National Rural Utilities Cooperative Finance Corporation,
6.0%, 5-15-06		2,000		2,035,934
				7,015,914
Petroleum - International - 3.15%
Anadarko Petroleum Corporation,
5.375%, 3-1-07		2,385		2,428,646

Petroleum - Services - 2.64%
Conoco Funding Company,
5.45%, 10-15-06		2,000		2,036,074

Railroad - 3.90%
Norfolk Southern Corporation,
7.35%, 5-15-07		1,850		1,952,662
Union Pacific Corporation,
6.625%, 2-1-08		1,000		1,056,671
				3,009,333
Utilities - Electric - 6.75%
Dominion Resources, Inc.,
7.625%, 7-15-05		2,200		2,201,978
FPL Group Capital Inc,
7.625%, 9-15-06		2,000		2,081,832
Wisconsin Energy Corporation,
5.875%, 4-1-06		910		922,422
				5,206,232
Utilities - Telephone - 2.64%
GTE Corporation,
6.36%, 4-15-06		2,000		2,034,206

TOTAL CORPORATE DEBT SECURITIES - 49.31%			$	38,025,335

(Cost: $38,129,352)


UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Agency Obligations - 5.19%
Federal Home Loan Mortgage Corporation,
3.625%, 9-15-08	2,000		1,982,738
Federal National Mortgage Association,
4.25%, 7-15-07	2,000		2,017,736
			4,000,474
Mortgage-Backed Obligations - 25.37%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
4.0%, 5-15-16	2,001		1,985,317
3.5%, 12-15-16	1,137		1,107,060
5.5%, 7-15-17 (Interest Only)	1,250		91,615
5.5%, 10-15-23 (Interest Only)	5,656		439,664
5.5%, 4-15-24 (Interest Only)	1,811		160,040
5.0%, 6-15-24 (Interest Only)	2,000		260,078
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
7.0%, 8-1-07	2		1,909
4.5%, 5-1-10	1,199		1,201,360
4.0%, 6-1-14	1,730		1,703,075
5.5%, 1-1-17	139		142,406
5.5%, 5-1-17	146		149,486
4.5%, 1-1-18	1,390		1,385,045
4.5%, 4-1-18	1,407		1,402,169
4.5%, 3-1-19	1,747		1,740,441
Federal National Mortgage Association Agency REMIC/CMO (Interest Only),
5.0%, 3-25-16	1,829		125,628
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.0%, 11-1-13	18		18,150
7.0%, 10-1-14	20		20,750
6.0%, 3-1-16	64		66,340
6.0%, 3-1-16	55		56,480
5.5%, 2-1-17	511		525,454
5.5%, 1-1-18	899		923,640
5.0%, 3-1-18	1,391		1,408,115
5.0%, 6-1-20	1,478		1,495,760
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.5%, 1-15-14	24		24,682
7.5%, 3-15-15	26		27,632
6.0%, 8-15-16	85		88,829
6.0%, 12-15-16	171		177,724
5.5%, 1-15-17	228		235,212
6.0%, 1-15-17	149		154,656
5.5%, 7-15-17	360		371,843
5.5%, 10-15-17	246		253,621
5.0%, 12-15-17	884		900,231
7.0%, 6-15-28	32		34,445
7.0%, 7-15-29	33		35,502
3.75%, 1-20-34	855		846,248
			19,560,607
Treasury Inflation Protected Obligation - 0.77%
United States Treasury Note,
3.0%, 7-15-12 (A)	500		594,382

Treasury Obligations - 15.13%
United States Treasury Notes:
3.5%, 11-15-06	2,000		1,997,734
4.75%, 11-15-08	2,000		2,066,250
3.125%, 4-15-09	2,000		1,959,922
4.0%, 3-15-10	2,500		2,527,245
5.0%, 8-15-11	1,000		1,066,133
4.25%, 8-15-14	2,000		2,047,812
			11,665,096

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 46.46%		$	35,820,559

(Cost: $35,834,245)


SHORT-TERM SECURITIES


Finance Companies - 2.07%
USAA Capital Corp.,
3.15%, 7-6-05	1,600		1,599,300

Forest and Paper Products - 3.07%
Sonoco Products Co.,
3.44%, 7-1-05	2,363		2,363,000

TOTAL SHORT-TERM SECURITIES - 5.14%		$	3,962,300

(Cost: $3,962,300)

TOTAL INVESTMENT SECURITIES - 100.91%		$	77,808,194

(Cost: $77,925,897)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.91%)			(701,360	)


NET ASSETS - 100.00%		$	77,106,834


Notes to Schedule of Investments
(A)The interest rate for this security is a stated rate, but the interest payments are determined by multiplying the inflation-adjusted principal by one half of the stated rate for each semiannual interest payment date.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      LIMITED-TERM BOND PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (cost - $77,926) (Notes 1 and 3)	$	77,808
Cash		- -	*
Receivables:
Interest		955
Portfolio shares sold		11
Prepaid and other assets		2

Total assets		78,776

LIABILITIES
Payable for investment securities purchased		1,492
Payable to Portfolio shareholders		158
Accrued accounting services fee (Note 2)		3
Accrued management fee (Note 2)		1
Accrued service fee (Note 2)		1
Accrued shareholder servicing (Note 2)		1
Other		13

Total liabilities		1,669

Total net assets	$	77,107

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	14
Additional paid-in capital		76,439
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,156
Accumulated undistributed net realized loss on investment transactions		(384	)
Net unrealized depreciation in value of investments		(118	)

Net assets applicable to outstanding units of capital	$	77,107

Net asset value, redemption and offering price per share	$	5.6189

Capital shares outstanding		13,723
Capital shares authorized		30,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      LIMITED-TERM BOND PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	1,494

Expenses (Note 2):
Investment management fee		192
Service fee		96
Accounting services fee		22
Audit fees		8
Custodian fees		4
Legal fees		1
Shareholder servicing		1
Other		14

Total expenses		338

Net investment income		1,156

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments		(51	)
Unrealized depreciation in value of investments during the period	(281		)

Net loss on investments	(332		)

Net increase in net assets resulting from operations	$	824

See Notes to Financial Statements.

Statement of Changes in Net Assets
**LIMITED-TERM BOND PORTFOLIO**
*(In Thousands)* *(Unaudited)*
	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,156		$	2,158
Realized net loss on investments			(51	)		(83	)
Unrealized depreciation			(281	)		(828	)

Net increase in net assets resulting from operations			824			1,247

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(2,159	)
Realized gains on investment transactions			(-	)		(-	)

			(-	)		(2,159	)

Capital share transactions ⁽²⁾			(2,877	)		6,479

Total increase (decrease)			(2,053	)		5,567
NET ASSETS
Beginning of period			79,160			73,593

End of period		$	77,107		$	79,160

Undistributed net investment income (loss)		$	1,156		$	(-	)*


(1)See "Financial Highlights" on page 140.

(2)Shares issued from sale of shares			837			3,238
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			388
Shares redeemed			(1,353	)		(2,471	)

Increase (decrease) in outstanding capital shares			(516	)		1,155

Value issued from sale of shares		$	4,668		$	18,327
Value issued from reinvestment of dividend and/or capital gains distribution			- -			2,159
Value redeemed			(7,545	)	(14,007		)

Increase (decrease) in outstanding capital		$	(2,877	)	$	6,479

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
LIMITED-TERM BOND PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	5.5593		$	5.6245		$	5.6068		$	5.4437		$	5.1666		$	5.0405

Income (loss) from investment operations:
Net investment income			0.0843			0.1559			0.1594			0.1327			0.1971			0.3155
Net realized and unrealized gain (loss) on investments		(0.0247		)	(0.0651		)		0.0176			0.1631			0.2771			0.1261

Total from investment operations			0.0596			0.0908			0.1770			0.2958			0.4742			0.4416

Less distributions from:
Net investment income		(0.0000		)	(0.1560		)	(0.1593		)	(0.1327		)	(0.1971		)	(0.3155		)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)

Total distributions		(0.0000		)	(0.1560		)	(0.1593		)	(0.1327		)	(0.1971		)	(0.3155		)

Net asset value, end of period		$	5.6189		$	5.5593		$	5.6245		$	5.6068		$	5.4437		$	5.1666

Total return			1.07	%		1.61	%		3.16	%		5.43	%		9.21	%		8.73	%
Net assets, end of period (in millions)			$77			$79			$74			$47			$16			$6
Ratio of expenses to average net assets including voluntary expense waiver			0.88	%⁽²⁾		0.87	%		0.84	%		0.69	%		0.38	%		0.40	%
Ratio of net investment income to average net assets including voluntary expense waiver			3.01	%⁽²⁾		2.85	%		2.91	%		3.97	%		5.52	%		6.33	%
Ratio of expenses to average net assets excluding voluntary expense waiver			- -	⁽¹⁾		- -	⁽¹⁾		- -	⁽¹⁾		0.87	%		0.88	%		0.90	%
Ratio of net investment income to average net assets excluding voluntary expense waiver			- -	⁽¹⁾		- -	⁽¹⁾		- -	⁽¹⁾		3.79	%		5.02	%		5.83	%
Portfolio turnover rate			14	%		39	%		41	%		27	%		22	%		47	%

(1)Because the Portfolio's net assets exceeded $25 million for the entire period, there was no waiver of expenses. Therefore, no ratio is provided.
(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF MICRO CAP GROWTH PORTFOLIO

Portfolio Highlights

On June 30, 2005, the W&R Target Micro Cap Growth Portfolio had net assets totaling $43,180,703 invested in a diversified portfolio of:


92.85%		Common Stocks
7.15%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Technology Stocks	$	22.04
Health Care Stocks	$	16.75
Business Equipment and Services Stocks	$	14.58
Retail Stocks	$	12.11
Multi-Industry Stocks	$	10.44
Cash and Cash Equivalents	$	7.15
Capital Goods Stocks	$	6.72
Energy Stocks	$	3.28
Raw Materials Stocks	$	2.33
Miscellaneous Stocks	$	1.83
Consumer Nondurables Stocks	$	1.71
Consumer Durables Stocks	$	1.05


The Investments of Micro Cap Growth Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS		Shares		Value


Air Transportation - 0.54%
Pinnacle Airlines Corp.*		27,200	$	233,512

Aircraft - 0.38%
Innovative Solutions and Support, Inc.*		4,900		164,076

Apparel - 0.77%
Ashworth, Inc.*		37,000		332,630

Beverages - 0.94%
Boston Beer Company, Inc. (The), Class A*		18,100		406,164

Broadcasting - 0.00%
Cumulus Media Inc., Class A*		33		388

Business Equipment and Services - 6.03%
Encore Capital Group, Inc.*		19,900		338,399
First Advantage Corporation, Class A*		10,400		242,632
Labor Ready, Inc.*		37,500		874,125
Marlin Business Services, Inc.*		37,100		748,864
TRM Corporation*		23,800		399,602
				2,603,622
Capital Equipment - 4.45%
NATCO Group Inc.*		32,500		432,575
Somanetics Corporation*		43,800		979,806
Warnaco Group, Inc. (The)*		21,800		506,959
				1,919,340
Communications Equipment - 4.96%
Blue Coat Systems, Inc.*		16,900		505,732
Intervoice, Inc.*		45,800		395,025
NICE Systems Ltd.*		13,800		544,203
Redback Networks, Inc.*	109,100			694,422
				2,139,382
Computers - Peripherals - 5.99%
Allscripts Healthcare Solutions, Inc.*		37,900		628,571
Applix, Inc.*		32,700		154,181
Sigma Designs, Inc.*		47,700		361,566
Stratasys, Inc.*		15,300		499,545
WebSideStory, Inc.*		29,700		433,769
Xyratex Ltd*		32,700		507,995
				2,585,627
Electrical Equipment - 2.27%
Power-One, Inc.*		46,200		291,291
Ultralife Batteries, Inc.*		42,800		690,792
				982,083
Electronic Components - 3.18%
ARM Holdings plc, ADR		61,167		374,342
PLX Technology, Inc.*		38,400		388,992
Trident Microsystems, Inc.*		26,800		608,762
				1,372,096
Electronic Instruments - 7.54%
Artesyn Technologies, Inc.*		63,400		549,995
Asyst Technologies, Inc.*		48,100		213,564
Energy Conversion Devices, Inc.*		21,400		479,681
LTX Corporation*		35,600		176,398
Mattson Technology, Inc.*		33,300		237,429
Mikohn Gaming Corporation*		30,600		450,585
Photronics, Inc.*		25,300		590,249
Rudolph Technologies, Inc.*		11,700		167,193
Ultratech, Inc.*		13,500		247,388
Xenogen Corporation*		37,800		143,451
				3,255,933
Health Care - Drugs - 9.43%
Bentley Pharmaceuticals, Inc.*		17,900		196,005
Bioenvision, Inc.*		54,100		392,766
BioMarin Pharmaceutical Inc.*		66,500		497,752
Bone Care International, Inc.*		16,300		537,737
Corautus Genetics Inc.*	101,100			426,642
Cubist Pharmaceuticals Inc.*		30,100		396,568
First Horizon Pharmaceutical Corporation*		21,600		411,372
Hollis-Eden Pharmaceuticals, Inc.*		20,100		149,243
POZEN Inc.*		59,700		487,749
Serologicals Corporation*		27,000		573,885
				4,069,719
Health Care - General - 7.32%
Bruker BioSciences Corporation*		51,300		203,148
Candela Corporation*		56,700		595,633
IRIS International, Inc.*		27,800		494,284
PolyMedica Corporation		22,300		795,441
SeraCare Life Sciences, Inc.*		29,400		410,718
Spectranetics Corporation (The)*		60,300		403,407
Wilson Greatbatch Technologies, Inc.*		10,800		258,120
				3,160,751
Motor Vehicle Parts - 1.05%
LKQ Corporation*		16,700		452,820

Multiple Industry - 10.44%
Cutera, Inc.*		30,700		534,026
DSW Inc., Class A*		3,100		77,345
Educate, Inc.*		31,500		446,513
JAMDAT Mobile Inc.*		15,200		420,660
Kenexa Corporation*		16,900		221,982
NetLogic Microsystems, Inc.*		51,300		905,958
NuVasive, Inc.*		23,600		391,170
PortalPlayer, Inc.*		18,500		385,910
PowerDsine Ltd.*		8,700		87,087
SiRF Technology Holdings, Inc.*		17,400		307,371
Vitran Corporation Inc., Class A*		19,700		313,230
Volcom, Inc.*		3,800		102,334
WCA Waste Corporation*		35,900		314,843
				4,508,429
Petroleum - Services - 3.28%
Brigham Exploration Company*		48,300		440,254
Hydril Company*		18,000		977,490
				1,417,744
Restaurants - 5.72%
BUCA, Inc.*		34,600		179,228
McCormick & Schmick's Seafood Restaurants, Inc.*		43,400		684,635
Red Robin Gourmet Burgers, Inc.*		16,600		1,027,457
Steak n Shake Company (The)*		31,100		579,082
				2,470,402
Retail - Specialty Stores - 6.39%
Children's Place Retail Stores, Inc. (The)*		24,400		1,136,186
Goody's Family Clothing, Inc.		33,600		247,800
Jos. A. Bank Clothiers, Inc.*		18,387		795,422
Provide Commerce, Inc.*		23,600		508,226
Tweeter Home Entertainment Group, Inc.*		29,300		72,518
				2,760,152
Security and Commodity Brokers - 0.68%
Harris & Harris Group, Inc.*		24,700		294,547

Steel - 2.33%
NS Group, Inc.*		31,000		1,007,810

Timesharing and Software - 8.55%
Bottomline Technologies (de), Inc.*		15,100		225,518
Concur Technologies, Inc.*		50,200		527,351
Covansys Corporation*		49,100		626,516
CyberSource Corporation*		4,800		35,160
Jupitermedia Corporation*		27,800		475,797
NutriSystem, Inc.*		44,500		655,930
Online Resources Corporation*		37,700		425,068
Ultimate Software Group, Inc. (The)*		44,000		722,480
				3,693,820
Trucking and Shipping - 0.61%
U.S. Xpress Enterprises, Inc., Class A*		22,000		262,350

TOTAL COMMON STOCKS - 92.85%			$	40,093,397

(Cost: $32,493,992)

SHORT-TERM SECURITY - 4.99%	Principal Amount in Thousands


Household - General Products
Fortune Brands Inc.,
3.41%, 7-1-05	$2,154			2,154,000
(Cost: $2,154,000)

TOTAL INVESTMENT SECURITIES - 97.84%			$	42,247,397

(Cost: $34,647,992)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.16%				933,306


NET ASSETS - 100.00%			$	43,180,703


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      MICRO CAP GROWTH PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $34,648) (Notes 1 and 3)	$	42,247
Cash		- -	*
Receivables:
Investment securities sold		1,219
Portfolio shares sold		15
Prepaid and other assets		1

Total assets		43,482

LIABILITIES
Payable for investment securities purchased		281
Payable to Portfolio shareholders		12
Accrued accounting services fee (Note 2)		2
Accrued management fee (Note 2)		1
Accrued shareholder servicing (Note 2)		1
Accrued service fee (Note 2)		- -	*
Other		4

Total liabilities		301

Total net assets	$	43,181

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	3
Additional paid-in capital		51,865
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(251	)
Accumulated undistributed net realized loss on investment transactions	(16,035		)
Net unrealized appreciation in value of investments		7,599

Net assets applicable to outstanding units of capital	$	43,181

Net asset value, redemption and offering price per share	$	15.2184

Capital shares outstanding		2,837
Capital shares authorized		60,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      MICRO CAP GROWTH PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Interest and amortization	$	13
Dividends		10

Total income		23

Expenses (Note 2):
Investment management fee		189
Service fee		50
Accounting services fee		14
Audit fees		7
Custodian fees		4
Shareholder servicing		1
Legal fees		- -	*
Other		9

Total expenses		274

Net investment loss		(251	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		2,151
Unrealized depreciation in value of investments during the period		(688	)

Net gain on investments		1,463

Net increase in net assets resulting from operations	$	1,212

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      MICRO CAP GROWTH PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


				For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment loss	$	(251	)	$	(501	)
Realized net gain (loss) on investments		2,151			(23	)
Unrealized appreciation (depreciation)		(688	)		3,929

Net increase in net assets resulting from operations		1,212			3,405

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(-	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(-	)

Capital share transactions ⁽²⁾		624			(3,079	)

Total increase		1,836			326
NET ASSETS
Beginning of period		41,345			41,019

End of period	$	43,181		$	41,345

Undistributed net investment loss	$	(251	)	$	(-	)*


(1)See "Financial Highlights" on page 149.

(2) Shares issued from sale of shares		311			797
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			- -
Shares redeemed		(268	)		(1,053	)

Increase (decrease) in outstanding capital shares		43			(256	)

Value issued from sale of shares	$	4,422		$	10,454
Value issued from reinvestment of dividend and/or capital gains distribution		- -			- -
Value redeemed		(3,798	)	(13,533		)

Increase (decrease) in outstanding capital	$	624		$	(3,079	)

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      MICRO CAP GROWTH PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	14.7992		$	13.4476		$	8.7000		$	15.5000		$	17.5000		$	25.1000

Income (loss) from investment operations:
Net investment loss			(0.0883	)		(0.1794	)		(0.1178	)		(0.1000	)		(0.1000	)		(0.1000	)
Net realized and unrealized gain (loss) on investments			0.5075			1.5310			4.8654			(6.7000	)		(1.9000	)		(4.4000	)

Total from investment operations			0.4192			1.3516			4.7476			(6.8000	)		(2.0000	)		(4.5000	)

Less distributions from:
Net investment income			(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)
Capital gains			(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(3.1000	)

Total distributions			(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(3.1000	)

Net asset value, end of period		$	15.2184		$	14.7992		$	13.4476		$	8.7000		$	15.5000		$	17.5000

Total return			2.83	%		10.05	%		54.41	%	-43.64		%		- -11.33	%		- -21.05	%
Net assets, end of period (in millions)			$43			$41			$41			$25			$45			$52
Ratio of expenses to average net assets including voluntary expense waiver			1.38	%⁽¹⁾		1.35	%		1.37	%		1.34	%		1.35	%		1.30	%
Ratio of net investment loss to average net assets including voluntary expense waiver			- -1.26	%⁽¹⁾		- -1.26	%		- -1.17	%		- -1.10	%		- -1.00	%		- -0.46	%
Ratio of expenses to average net assets excluding voluntary expense waiver			NA			NA			1.51	%		1.45	%		1.40	%		1.35	%
Ratio of net investment loss to average net assets excluding voluntary expense waiver			NA			NA			- -1.31	%		- -1.21	%		- -1.05	%		- -0.50	%
Portfolio turnover rate			25	%		65	%		74	%		68	%		71	%		103	%

(1) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF MID CAP GROWTH PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Mid Cap Growth Portfolio had net assets totaling $3,229,284 invested in a diversified portfolio of:


94.07%		Common Stocks
5.93%		Cash and Cash Equivalents

As a shareholder of the Portoflio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Health Care Stocks	$	19.34
Technology Stocks	$	16.57
Business Equipment and Services Stocks	$	15.24
Financial Services Stocks	$	12.96
Consumer Services Stocks	$	7.95
Energy Stocks	$	6.06
Consumer Nondurables Stocks	$	5.95
Cash and Cash Equivalents	$	5.93
Capital Goods Stocks	$	5.64
Transportation Stocks	$	1.71
Retail Stocks	$	1.69
Multi-Industry Stocks	$	0.96


The Investments of Mid Cap Growth Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares			Value


Aircraft - 1.66%
L-3 Communications Holdings, Inc.		700	$	53,606

Banks - 5.72%
Amegy Bancorporation, Inc.		2,050		45,899
Northern Trust Corporation		1,350		61,472
Synovus Financial Corp.		2,700		77,409
				184,780
Beverages - 3.22%
Brown-Forman Corporation, Class B		900		54,414
Coca-Cola Enterprises Inc.		2,250		49,522
				103,936
Broadcasting - 2.02%
Cox Radio, Inc., Class A*		1,800		28,350
XM Satellite Radio Holdings Inc., Class A*		1,100		37,021
				65,371
Business Equipment and Services - 5.97%
Cintas Corporation		1,100		42,487
Lamar Advertising Company, Class A*		2,100		89,849
Stericycle, Inc.*		1,200		60,390
				192,726
Capital Equipment - 1.97%
IDEX Corporation		1,650		63,706

Communications Equipment - 1.56%
Juniper Networks, Inc.*		2,000		50,370

Computers - Micro - 3.15%
Apple Computer, Inc.*		2,350		86,421
Sun Microsystems, Inc.*		4,100		15,191
				101,612
Computers - Peripherals - 0.83%
Mercury Interactive Corporation*		700		26,824

Electrical Equipment - 1.20%
Molex Incorporated, Class A		1,650		38,684

Electronic Components - 7.89%
Analog Devices, Inc.		950		35,444
Broadcom Corporation, Class A*		1,450		51,519
Maxim Integrated Products, Inc.		1,100		42,004
Microchip Technology Incorporated		2,150		63,769
Network Appliance, Inc.*		2,200		62,205
				254,941
Electronic Instruments - 1.48%
Lam Research Corporation*		1,650		47,743

Food and Related - 2.73%
Campbell Soup Company		1,550		47,693
Hershey Foods Corporation		650		40,365
				88,058
Health Care - Drugs - 5.02%
Allergan, Inc.		1,050		89,502
Gilead Sciences, Inc.*		1,650		72,592
				162,094
Health Care - General - 8.57%
Biomet, Inc.		2,000		69,250
DENTSPLY International Inc.		975		52,655
Gen-Probe Incorporated*		700		25,371
Kyphon Inc.*		1,150		40,020
Schein (Henry), Inc.*		2,150		89,365
				276,661
Hospital Supply and Management - 5.75%
Bard (C. R.), Inc.		1,200		79,812
Health Management Associates, Inc., Class A		1,850		48,433
Laboratory Corporation of America Holdings*		1,150		57,385
				185,630
Hotels and Gaming - 1.54%
Starwood Hotels & Resorts Worldwide, Inc.		850		49,785

Metal Fabrication - 2.47%
Fastenal Company		1,300		79,631

Multiple Industry - 0.96%
AXIS Capital Holdings Limited		1,100		31,130

Petroleum - Domestic - 1.37%
XTO Energy Inc.		1,300		44,187

Petroleum - International - 4.00%
Burlington Resources Inc.		1,450		80,098
Noble Energy, Inc.		650		49,173
				129,271
Petroleum - Services - 0.69%
Smith International, Inc.		350		22,295

Publishing - 4.39%
Getty Images, Inc.*		1,050		77,973
Meredith Corporation		1,300		63,778
				141,751
Retail - Food Stores - 0.53%
Longs Drug Stores Corporation		400		17,220

Retail - General Merchandise - 1.16%
Nordstrom, Inc.		550		37,384

Security and Commodity Brokers - 7.24%
Ameritrade Holding Corporation*		2,350		43,722
Chicago Mercantile Exchange Holdings Inc.		420		124,110
Legg Mason, Inc.		350		36,438
Prudential Financial, Inc.		450		29,547
				233,817
Timesharing and Software - 9.27%
Alliance Data Systems Corporation*		1,850		75,036
eBay Inc.*		2,300		75,980
Global Payments Inc.		700		47,460
Paychex, Inc.		2,250		73,159
Total System Services, Inc.		1,150		27,715
				299,350
Trucking and Shipping - 1.71%
C.H. Robinson Worldwide, Inc.		950		55,290

TOTAL COMMON STOCKS - 94.07%			$	3,037,853

(Cost: $2,861,026)


SHORT-TERM SECURITY - 13.97%	Principal Amount in Thousands


Repurchase Agreement
J.P. Morgan Securities Inc., 2.4% Repurchase Agreement dated 6-30-05 to be repurchased at $451,030 on 7-1-05 (A)	$	451		451,000
(Cost: $451,000)

TOTAL INVESTMENT SECURITIES - 108.04%			$	3,488,853

(Cost: $3,312,026)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (8.04%)				(259,569	)


NET ASSETS - 100.00%			$	3,229,284


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Collateralized by $457,785 United States Treasury Note, 3.375% due 2-15-07; market value and accrued interest aggregate $463,612.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      MID CAP GROWTH PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (Notes 1 and 3):
Securities (cost - $2,861)	$	3,038
Repurchase agreement (cost - $451)		451

		3,489
Cash		1
Receivables:
Portfolio shares sold		23
Dividends and interest		2
Prepaid and other assets		7

Total assets		3,522

LIABILITIES
Payable for investment securities purchased		291
Accrued service fee (Note 2)		- -	*
Accrued shareholder servicing (Note 2)		- -	*
Payable to Portfolio shareholders		- -	*
Other		2

Total liabilities		293

Total net assets	$	3,229

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	1
Additional paid-in capital		3,050
Accumulated undistributed income:
Accumulated undistributed net investment income		- -	*
Accumulated undistributed net realized gain on investment transactions		1
Net unrealized appreciation in value of investments		177

Net assets applicable to outstanding units of capital	$	3,229

Net asset value, redemption and offering price per share	$	5.4134

Capital shares outstanding		597
Capital shares authorized		60,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      MID CAP GROWTH PORTFOLIO
      For the Period from April 28, 2005 ⁽¹⁾ through June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends	$	2
Interest and amortization		1

Total income		3

Expenses (Note 2):
Investment management fee		3
Legal fees		2
Service fee		1
Custodian fees		- -	*
Shareholder servicing		- -	*

Total		6
Less voluntary waiver of investment management fee (Note 2)		(3	)

Total expenses		3

Net investment income		- -	*

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		1
Unrealized appreciation in value of investments during the period		177

Net gain on investments		178

Net increase in net assets resulting from operations	$	178

*Not shown due to rounding.
(1)Commencement of operations.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      MID CAP GROWTH PORTFOLIO
      For the Period from April 28, 2005⁽¹⁾ through June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INCREASE IN NET ASSETS
Operations:
Net investment income	$	- -	*
Realized net gain on investments		1
Unrealized appreciation		177

Net increase in net assets resulting from operations		178

Distributions to shareholders from (Note 1E): ⁽²⁾
Net investment income		(-	)
Realized gains on investment transactions		(-	)

		(-	)

Capital share transactions ⁽³⁾		3,051

Total increase		3,229
NET ASSETS
Beginning of period		- -

End of period	$	3,229

Undistributed net investment income	$	- -	^*


(1)Commencement of operations.
(2)See "Financial Highlights" on page 158.

(3)Shares issued from sale of shares		598
Shares issued from reinvestment of dividend and/or capital gains distribution		- -
Shares redeemed		(1	)

Increase in outstanding capital shares		597

Value issued from sale of shares	$	3,056
Value issued from reinvestment of dividend and/or capital gains distribution		- -
Value redeemed		(5	)

Increase in outstanding capital	$	3,051

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      MID CAP GROWTH PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)




Net asset value, beginning of period	$	5.0000

Income from investment operations:
Net investment income		0.0005
Net realized and unrealized gain on investments		0.4129

Total from investment operations		0.4134

Less distributions from:
Net investment income	(0.0000		)
Capital gains	(0.0000		)

Total distributions	(0.0000		)

Net asset value, end of period	$	5.4134

Total return		8.27	%
Net assets, end of period (in millions)	$3
Ratio of expenses to average net assets including voluntary expense waiver		0.84	%⁽²⁾
Ratio of net investment income to average net assets including voluntary expense waiver		0.08	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver		1.65	%⁽²⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver		- -0.73	%⁽²⁾
Portfolio turnover rate		0	%

(1)Commencement of operations.
(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF MONEY MARKET PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Money Market Portfolio had net assets totaling $52,535,627.

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:



Corporate Obligations - Notes	$	44.49
Corporate Obligations - Commercial Paper	$	34.67
Municipal Obligations	$	16.30
United States Government Agency Obligations	$	2.45
Corporate Obligations - Certificate of Deposit	$	2.09


The Investments of Money Market Portfolio
June 30, 2005 (Unaudited)			(Unaudited)
CORPORATE OBLIGATIONS	Principal Amount in Thousands			Value


Certificate of Deposit - 2.09%
Banks
Citibank, N.A.,
3.21%, 8-22-05	$	1,100	$	1,100,000

Commercial Paper
Banks - 5.18%
Rabobank USA Financial Corp.:
3.14%, 7-25-05		452		451,054
3.14%, 7-26-05		500		498,910
3.415%, 9-30-05		500		495,684
3.3%, 10-20-05		1,100		1,088,808
Royal Bank of Scotland PLC (The),
3.285%, 7-12-05		185		184,814
				2,719,270
Finance Companies - 9.39%
Ciesco, LLC:
3.26%, 7-22-05		550		548,954
3.14%, 8-3-05		800		797,697
PACCAR Financial Corp.,
3.49%, 1-19-06		740		725,509
Preferred Receivables Funding Corp.,
3.22%, 7-20-05		850		848,555
River Fuel Trust #1 (Bank of New York (The)),
3.14%, 7-18-05		773		771,854
Vehicle Services of America Ltd. (Bank of America, N.A.),
3.35%, 9-13-05		1,250		1,241,392
				4,933,961
Food and Related - 5.64%
McCormick & Co. Inc.:
2.95%, 8-16-05		750		747,173
3.27%, 11-15-05		1,000		987,556
Nestle Capital Corp.,
3.19%, 7-6-05		1,228		1,227,456
				2,962,185
Household - General Products - 1.87%
Fortune Brands Inc.,
3.41%, 7-1-05		982		982,000

Multiple Industry - 2.32%
General Electric Capital Corporation,
3.04%, 8-8-05		1,225		1,221,069

Security and Commodity Brokers - 5.23%
UBS Finance Delaware LLC:
3.26%, 7-11-05		2,400		2,397,827
3.14%, 7-25-05		350		349,267
				2,747,094
Utilities - Telephone - 5.04%
SBC Communications Inc.,
3.23%, 7-13-05		2,200		2,197,631
Verizon Network Funding Corporation,
3.3%, 7-19-05		450		449,258
				2,646,889

Total Commercial Paper - 34.67%				18,212,468


Notes
Banks - 5.22%
Bank of New York Company Inc. (The),
2.2%, 5-12-06		750		740,429
Wells Fargo & Company:
3.18%, 7-5-05		1,500		1,500,000
3.19%, 7-15-05		500		500,000
				2,740,429
Beverages - 1.14%
Diageo Capital plc,
6.125%, 8-15-05		600		601,969

Business Equipment and Services - 2.40%
Playworld Systems Incorporated, Taxable Variable Rate Demand/Fixed Rate Revenue Bonds, Series A of 1998 (Wachovia Bank, N.A.),
3.41%, 7-6-05		1,260		1,260,000

Computers - Main and Mini - 2.38%
International Business Machines Corporation,
3.14%, 7-8-05		1,250		1,250,000

Finance Companies - 4.55%
Caterpillar Financial Services Corp.,
2.65%, 1-30-06		1,005		999,487
Lowell Family, LLC, Variable Rate Taxable Demand Bonds (LaSalle Bank National Association),
3.4%, 7-7-05		150		150,000
Unilever Capital Corporation,
6.875%, 11-1-05		1,225		1,240,470
				2,389,957
Food and Related - 2.07%
Watts Brothers Frozen Foods, L.L.C., Variable Rate Demand Taxable Revenue Bonds, 1997 (U.S. Bank of Washington, National Association),
3.38%, 7-7-05		1,089		1,089,000

Furniture and Furnishings - 0.77%
Capo & Sons Corporation, Taxable Variable Rate Demand Bonds, Series 1998 (Wachovia Bank, N.A.),
3.41%, 7-7-05		405		405,000

Hospital Supply and Management - 3.93%
Autumn House at Powder Mill, Inc., Taxable Variable Rate Demand Bonds, Series of 2003 (Suntrust Bank),
3.3%, 7-7-05		500		500,000
Meriter Management Services, Inc., Taxable Variable Rate Demand Notes, Series 1996 (U.S. Bank Milwaukee, N.A.),
3.25%, 7-6-05		1,565		1,565,000
				2,065,000
Household - General Products - 2.38%
Procter & Gamble Company (The),
3.34%, 7-7-05		1,250		1,250,000

Insurance - Property and Casualty - 2.09%
MBIA Global Funding, LLC (MBIA Insurance Corporation),
3.28563%, 7-29-05		1,100		1,100,000

Leisure Time Industry - 2.59%
Ansley Golf Club, Inc., Incremental Taxable Variable Rate Demand Bonds, Series 1998 (Wachovia Bank, N.A.),
3.41%, 7-7-05		1,360		1,360,000

Multiple Industry - 6.13%
Heller Financial, Inc.,
6.375%, 3-15-06		1,000		1,020,825
The Salvation Army, Taxable Multi-Modal Revenue Bonds, Series 2005A (The Bank of New York),
3.32%, 7-7-05		2,200		2,200,000
				3,220,825
Restaurants - 1.44%
McDonald's Corporation,
4.488%, 3-7-06 (A)		750		754,613

Retail - General Merchandise - 4.75%
Service Oil, Inc., Taxable Variable Rate Demand Bonds (Service Oil, Inc.), Series 2002 (U.S. Bank, National Association),
3.45%, 7-5-05		770		770,000
Wal-Mart Stores, Inc.,
5.586%, 6-1-06		1,700		1,728,280
				2,498,280
Trucking and Shipping - 2.65%
Volpe Family Partnership, L.P., Taxable Variable Rate Demand Revenue Bonds, Series of 2001 (Wachovia Bank, N.A.),
3.39%, 7-7-05		1,390		1,390,000

Total Notes - 44.49%				23,375,073


TOTAL CORPORATE OBLIGATIONS - 81.25%			$	42,687,541

(Cost: $42,687,541)


MUNICIPAL OBLIGATIONS


California - 5.95%
California Pollution Control Financing Authority, Environmental Improvement Revenue Bonds (Air Products and Chemicals, Inc./Wilmington Facility), Taxable Series 1997A,
3.11%, 7-6-05		2,300		2,300,000
County of Sacramento, Taxable Pension Funding Bonds, Series 1995B (Bayerische Landesbank Girozentrale, New York Branch),
3.31%, 7-6-05		825		825,000
				3,125,000
Florida - 2.86%
University of South Florida Research Foundation, Incorporated, Variable Rate Demand Revenue Bonds (Interdisciplinary Research Building Project), Taxable Series 2004B (Bank of America, N.A.),
3.25%, 7-6-05		1,500		1,500,000

Maryland - 1.87%
Mayor and City Council of Baltimore (City of Baltimore, Maryland), General Obligation Bonds, Consolidated Public Improvement Refunding Bonds, Series 2003C (Variable Rate Demand/Taxable), (Financial Security Assurance Inc.),
3.28%, 7-7-05		985		985,000

New York - 2.79%
City of New York (The), General Obligation Bonds, Fiscal 1995 Series B (Westdeutsche Landesbank Gironzentrale),
3.25%, 7-26-05		865		865,000
Nassau County Industrial Development Agency, Taxable Variable Rate Demand Revenue Bonds (57 Seaview Realty Associates, LLC 2004 Project), (Wachovia Bank, N.A.),
3.34%, 7-7-05		600		600,000
				1,465,000
Texas - 1.71%
Gulf Coast Waste Disposal Authority, Pollution Control Revenue Bonds (Amoco Oil Company Project), Taxable Series 1995,
3.11%, 7-6-05	$900			900,000

Washington - 1.12%
Washington State Housing Finance Commission, Taxable Variable Rate Demand Multifamily Revenue Bonds (Mill Pointe Apartments Project), Series 1999B (U. S. Bank, National Assocation),
3.45%, 7-5-05		590		590,000

TOTAL MUNICIPAL OBLIGATIONS - 16.30%			$	8,565,000

(Cost: $8,565,000)


UNITED STATES GOVERNMENT AGENCY OBLIGATIONS


Overseas Private Investment Corporation:
3.21%, 7-6-05		495		495,000
3.31%, 7-6-05		791		790,698

TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 2.45%			$	1,285,698

(Cost: $1,285,698)

TOTAL INVESTMENT SECURITIES - 100.00%			$	52,538,239

(Cost: $52,538,239)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.00%)				(2,612	)


NET ASSETS - 100.00%			$	52,535,627


Notes to Schedule of Investments
(A)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of this security amounted to 1.44% of net assets.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      MONEY MARKET PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (cost - $52,538) (Notes 1 and 3)	$	52,538
Cash		2
Receivables:
Interest		147
Portfolio shares sold		107
Prepaid and other assets		2

Total assets		52,796

LIABILITIES
Payable to Portfolio shareholders		242
Dividends payable		10
Accrued accounting services fee (Note 2)		2
Accrued management fee (Note 2)		1
Accrued service fee (Note 2)		- -	*
Accrued shareholder servicing (Note 2)		- -	*
Other		5

Total liabilities		260

Total net assets	$	52,536

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	53
Additional paid-in capital		52,483

Net assets applicable to outstanding units of capital	$	52,536

Net asset value, redemption and offering price per share	$	1.0000

Capital shares outstanding		52,536
Capital shares authorized	120,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      MONEY MARKET PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	684

Expenses (Note 2):
Investment management fee		101
Service fee		63
Accounting services fee		17
Audit fees		6
Custodian fees		3
Legal fees		- -	*
Shareholder servicing		- -	*
Other		9

Total expenses		199

Net investment income		485

Net increase in net assets resulting from operations	$	485

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      MONEY MARKET PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended				For the fiscal year ended,
	6-30-05				12-31-04

DECREASE IN NET ASSETS
Operations:
Net investment income		$	485		$	388

Net increase in net assets resulting from operations			485			388

Dividends to shareholders from net investment income (Note 1E) ⁽¹⁾			(485	)		(388	)

Capital share transactions ⁽²⁾			(2,281	)		(9,513	)

Total decrease			(2,281	)		(9,513	)
NET ASSETS
Beginning of period			54,817			64,330

End of period		$	52,536		$	54,817

Undistributed net investment income		$	- -		$	- -


(1)See "Financial Highlights" on page 169.

(2) Shares issued from sale of shares			17,056			41,821
Shares issued from reinvestment of dividends			474			388
Shares redeemed		(19,811		)	(51,722		)

Decrease in outstanding capital shares			(2,281	)		(9,513	)

Value issued from sale of shares		$	17,056		$	41,821
Value issued from reinvestment of dividends			474			388
Value redeemed		(19,811		)	(51,722		)

Decrease in outstanding capital		$	(2,281	)	$	(9,513	)

See Notes to Financial Statements.

Financial Highlights
      MONEY MARKET PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	1.0000		$	1.0000		$	1.0000		$	1.0000		$	1.0000		$	1.0000

Net investment income			0.9524			0.0070			0.0051			0.0113			0.0356			0.0571
Less dividends declared		(0.9524		)	(0.0070		)	(0.0051		)	(0.0113		)	(0.0356		)	(0.0571		)

Net asset value, end of period		$	1.0000		$	1.0000		$	1.0000		$	1.0000		$	1.0000		$	1.0000

Total return			0.94	%		0.70	%		0.52	%		1.12	%		3.62	%		5.87	%
Net assets, end of period (in millions)			$53			$55			$64			$103			$99			$52
Ratio of expenses to average net assets			0.79	%⁽¹⁾		0.76	%		0.75	%		0.75	%		0.73	%		0.75	%
Ratio of net investment income to average net assets			1.92	%⁽¹⁾		0.69	%		0.53	%		1.13	%		3.31	%		5.67	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF MORTGAGE SECURITIES PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Mortgage Securities Portfolio had net assets totaling $26,792,150 invested in a diversified portfolio of:


68.06%		United States Government and Government Agency Obligations
29.57%		Corporate Bonds
2.37%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:



United States Government and Government Agency Obligations	$	68.06
Corporate Bonds - Finance Companies	$	29.57
Cash and Cash Equivalents	$	2.37


The Investments of Mortgage Securities Portfolio
June 30, 2005			(Unaudited)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands			Value


Finance Companies
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33	$	170	$	172,706
Banc of America Alternative Loan Trust 2004-11,
6.0%, 12-25-34		467		475,694
Banc of America Funding 2004-2 Trust,
6.5%, 7-20-32		148		155,833
Banc of America Funding Corporation,
5.0269%, 9-20-34		125		125,866
Banc of America Mortgage Trust 2004-3,
4.875%, 4-25-19		94		93,692
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (A)		250		267,389
Bank of America Mortgage Securities, Inc.,
5.75%, 8-25-34		153		155,020
Bear Stearns Commercial Mortgage Securities Inc.,
5.064%, 5-14-16 (A)		150		152,956
C-Bass Mortgage Loan Asset-Backed Certificates:
Series 2005-CB1,
4.974%, 1-25-35		200		200,232
Series 2005-CB3,
5.2793%, 6-25-35		200		201,735
CHL Mortgage Pass-Through Trust 2003-28,
4.15%, 8-25-33		150		142,686
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35		210		210,394
Charlie Mac Trust 2004-2,
5.0%, 10-25-34		274		272,368
Chase Mortgage Finance Trust, Series 2003-S11,
5.5%, 10-25-33		377		378,857
Citigroup Mortgage Loan Trust Inc., Mortgage Pass-Through Certificates, Series 2004-2,
6.5%, 8-25-33 (A)		127		129,012
CountryPlace Manufactured Housing Contract Trust 2005-1:
4.42%, 7-1-35 (A)		120		120,263
4.8%, 7-1-35 (A)		145		146,110
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		85		87,484
FIRSTPLUS Home Loan Owner Trust 1998-5,
7.42%, 12-10-24	69			69,343
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC,
5.25%, 4-25-32		99		98,714
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC,
5.25%, 11-25-32 (A)		194		194,404
Green Tree Financial Corporation,
7.95%, 8-15-25		150		159,729
Hilton Hotel Pool Trust,
3.61125%, 10-3-15 (A)		100		100,625
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33		200		199,182
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.2207%, 10-12-37 (A)		200		216,500
Lehman ABS Manufactured Housing Contract Trust 2001-B:
3.01%, 3-15-10		183		171,552
5.873%, 5-15-22		150		153,993
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		88		88,719
MMCA Automobile Trust 2002-1,
5.37%, 1-15-10		162		162,295
Mid-State Capital Corporation 2004-1 Trust,
6.005%, 8-15-37		107		111,221
Money Store Trust 1998-B (The),
3.37%, 8-15-29		220		219,576
NationsLink Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-2,
5.0%, 8-20-30 (A)		100		97,435
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (A)		100		106,941
Oakwood Mortgage Investors, Inc.,
6.6%, 5-15-21		65		65,098
Origen Manufactured Housing Contract Trust:
2004-A:
5.7%, 1-15-35	100			103,814
5.91%, 1-15-35		200		206,909
2004-B,
4.75%, 8-15-21		100		99,811
2005-A,
4.97%, 10-15-21		105		106,602
RALI Series 2003-QS11 Trust,
5.75%, 6-25-33		220		226,571
RAMP Series 2003-RS11 Trust,
6.092%, 12-25-33		500		510,741
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35		225		225,405
RFMSI Series 2004-S5 Trust,
4.5%, 5-25-19		95		92,979
Structured Asset Securities Corporation:
5.63%, 5-25-34		100		101,069
6.0%, 6-25-34		250		256,419
Wells Fargo Mortgage Backed Securities: 2003-K Trust (The),
4.52026%, 11-25-33		140		139,034
2004-1 Trust (The),
5.5%, 2-25-34		147		150,281

TOTAL CORPORATE DEBT SECURITIES - 29.57%			$	7,923,259

(Cost: $7,887,201)


UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.0%, 5-1-18		848		858,692
5.5%, 6-1-19		297		305,332
5.5%, 9-1-19		452		464,094
5.5%, 5-1-20		297		305,205
6.0%, 10-1-33		804		825,431
5.5%, 2-1-35		247		250,429
5.5%, 7-1-35		450		456,188

Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.5%, 7-1-19	135		138,544
4.5%, 7-1-20	250		248,828
3.951%, 12-26-31	127		127,023
7.0%, 11-1-32	332		351,798
5.5%, 5-1-33	400		405,375
6.0%, 12-1-33	381		391,679
5.0%, 2-1-34	931		932,115
6.0%, 4-1-34	305		312,634
6.5%, 4-1-34	582		602,824
5.0%, 7-1-34	300		300,000
5.5%, 7-1-34	422		429,287
6.0%, 8-1-34	236		242,054
5.5%, 9-1-34	145		146,703
6.5%, 9-1-34	213		220,227
5.5%, 10-1-34	2,598		2,634,861
5.5%, 10-1-34	374		379,789
5.5%, 11-1-34	377		382,816
6.0%, 11-1-34	195		199,474
6.5%, 11-1-34	416		431,154
6.5%, 11-1-34	283		293,304
6.0%, 12-1-34	779		798,470
5.5%, 2-1-35	739		750,536
6.5%, 3-1-35	235		243,610
6.0%, 4-1-35	290		297,805
5.0%, 5-1-35	100		100,005
Government National Mortgage Association Agency REMIC/CMO (Interest Only),
0.9939%, 6-17- 45	1,595		100,917
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.25%, 7-15-24	137		144,028
5.0%, 11-15-33	1,305		1,316,582
5.0%, 7-1-34	250		251,875
5.5%, 12-15-34	535		546,420
5.5%, 7-1-35	525		535,992
Government National Mortgage Association Non-Agency REMIC/CMO,
5.008%, 12-16-25	500		512,995

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 68.06%		$	18,235,095

(Cost: $18,166,885)


SHORT-TERM SECURITIES


Commercial Paper
Finance Companies - 1.87%
USAA Capital Corp.,
3.15%, 7-6-05	500		499,781

Household - General Products - 4.56%
Fortune Brands Inc.,
3.41%, 7-1-05	1,223		1,223,000

Total Commercial Paper - 6.43%			1,722,781


United States Government Agency Obligation - 5.23%
Federal Home Loan Bank,
2.55%, 7-1-05	1,400		1,400,000

TOTAL SHORT-TERM SECURITIES - 11.66%		$	3,122,781

(Cost: $3,122,781)

TOTAL INVESTMENT SECURITIES - 109.29%		$	29,281,135

(Cost: $29,176,867)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (9.29%)			(2,488,985	)


NET ASSETS - 100.00%		$	26,792,150


Notes to Schedule of Investments
(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2005, the total value of these securities amounted to $1,531,635 or 5.72% of net assets.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      MORTGAGE SECURITIES PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                      (Unaudited)


ASSETS
Investment securities - at value (cost - $29,177) (Notes 1 and 3)	$	29,281
Cash		1
Receivables:
Investment securities sold		222
Interest		112
Portfolio shares sold		7
Prepaid and other assets		1

Total assets		29,624

LIABILITIES
Payable for investment securities purchased		2,816
Accrued accounting services fee (Note 2)		2
Accrued management fee (Note 2)		1
Payable to Portfolio shareholders		1
Accrued service fee (Note 2)		- -	*
Accrued shareholder servicing (Note 2)		- -	*
Other		12

Total liabilities		2,832

Total net assets	$	26,792

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	5
Additional paid-in capital		26,233
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		474
Accumulated undistributed net realized loss on investment transactions		(24	)
Net unrealized appreciation in value of investments		104

Net assets applicable to outstanding units of capital	$	26,792

Net asset value, redemption and offering price per share	$	5.1728

Capital shares outstanding		5,179
Capital shares authorized		80,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      MORTGAGE SECURITIES PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	600

Expenses (Note 2):
Investment management fee		59
Service fee		30
Audit fees		12
Custodian fees		11
Accounting services fee		9
Legal fees		1
Shareholder servicing		1
Other		3

Total expenses		126

Net investment income		474

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments		(24	)
Unrealized depreciation in value of investments		(1	)

Net loss on investments		(25	)

Net increase in net assets resulting from operations	$	449

See Notes to Financial Statements.

Statement of Changes in Net Assets
      MORTGAGE SECURITIES PORTFOLIO
      (In Thousands)                                                                                                                (Unaudited)


	For the six months ended				For the period from 5-27-04⁽¹⁾through
	6-30-05				12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income		$	474		$	401
Realized net gain (loss) on investments			(24	)		272
Unrealized appreciation (depreciation)			(1	)		105

Net increase in net assets resulting from operations			449			778

Distributions to shareholders from (Note 1E): ⁽²⁾
Net investment income			(-	)		(401	)
Realized gains on investment transactions			(-	)		(272	)

			(-	)		(673	)

Capital share transactions ⁽³⁾			5,443			20,795

Total increase			5,892			20,900
NET ASSETS
Beginning of period			20,900			- -

End of period		$	26,792		$	20,900

Undistributed net investment income		$	474		$	- -	*


(1)Commencement of operations.
(2)See "Financial Highlights" on page 179.

(3)Shares issued from sale of shares			1,186			4,019
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			132
Shares redeemed			(122	)		(36	)

Increase in outstanding capital shares			1,064			4,115

Value issued from sale of shares		$	6,066		$	20,309
Value issued from reinvestment of dividend and/or capital gains distribution			- -			673
Value redeemed			(623	)		(187	)

Increase in outstanding capital		$	5,443		$	20,795

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      MORTGAGE SECURITIES PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)


	For the six months ended				For the period from 5-27-04⁽¹⁾ through
	6-30-05				12-31-04

Net asset value, beginning of period		$	5.0791		$	5.0000

Income from investment operations:
Net investment income			0.0915			0.1009
Net realized and unrealized gain on investments			0.0022			0.1476

Total from investment operations			0.0937			0.2485

Less distributions from:
Net investment income		(0.0000		)	(0.1009		)
Capital gains		(0.0000		)	(0.0685		)

Total distributions		(0.0000		)	(0.1694		)

Net asset value, end of period		$	5.1728		$	5.0791

Total return			1.85	%		4.97	%
Net assets, end of period (in millions)			$27			$21
Ratio of expenses to average net assets including voluntary expense waiver			1.07	%⁽²⁾		0.71	%⁽²⁾
Ratio of net investment income to average net assets including voluntary expense waiver			4.01	%⁽²⁾		4.02	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			NA			0.97	%⁽²⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			NA			3.76	%⁽²⁾
Portfolio turnover rate			103	%		184	%

(1)Commencement of operations.
(2) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF REAL ESTATE SECURITIES PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Real Estate Securities Portfolio had net assets totaling $31,538,790 invested in a diversified portfolio of:


97.83%		Common Stocks
2.17%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Shelter Stocks	$	76.51
Consumer Services Stocks	$	9.72
Multi-Industry Stocks	$	6.09
Business Equipment and Services Stocks	$	3.80
Cash and Cash Equivalents	$	2.17
Retail Stocks	$	1.71


The Investments of Real Estate Securities Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares			Value


Business Equipment and Services - 3.80%
Brookfield Properties Corporation		41,550	$	1,196,640

Hotels and Gaming - 9.72%
Hilton Hotels Corporation		51,700		1,233,045
Marriott International, Inc., Class A		5,500		375,210
Starwood Hotels & Resorts Worldwide, Inc.		24,900		1,458,393
				3,066,648
Multiple Industry - 6.09%
DiamondRock Hospitality Company		30,500		344,650
Education Realty Trust, Inc.		30,400		556,320
Great Wolf Resorts, Inc.*		800		16,336
NorthStar Realty Finance Corp.		33,700		353,513
Spirit Finance Corporation		38,500		452,375
Thomas Properties Group, Inc.		15,700		196,328
				1,919,522
Real Estate Investment Trust - 76.51%
Alexandria Real Estate Equities, Inc.		6,100		448,045
American Campus Communities, Inc.		27,100		614,628
Archstone-Smith Trust		14,700		567,714
Arden Realty, Inc.		5,900		212,282
AvalonBay Communities, Inc.		8,500		686,800
BRE Properties, Inc., Class A		2,600		108,810
BioMed Realty Trust, Inc.		30,643		730,836
Boston Properties, Inc.		10,200		714,000
Brandywine Realty Trust		25,100		769,315
Camden Property Trust		17,700		951,375
Capital Automotive REIT		3,100		118,219
Catellus Development Corporation		11,800		387,040
Columbia Equity Trust, Inc.*		10,200		156,570
Cousins Properties Incorporated		13,900		411,162
Developers Diversified Realty Corporation		26,000		1,194,960
Equity One, Inc.		23,800		540,260
Equity Residential		24,700		909,454
Essex Property Trust, Inc.		3,900		323,934
Extra Space Storage Inc.		10,942		156,799
First Potomac Realty Trust		12,600		312,480
General Growth Properties, Inc.		32,480		1,334,603
Gramercy Capital Corp.		13,400		327,764
Hersha Hospitality Trust		28,100		268,074
Host Marriott Corporation		25,600		448,000
Kimco Realty Corporation		16,100		948,451
Kite Realty Group Trust		35,200		528,000
Liberty Property Trust		7,700		341,187
Maguire Properties, Inc.		12,200		345,748
Mills Corporation (The)		20,200		1,227,958
Newcastle Investment Corp.		8,800		265,320
PS Business Parks, Inc.		3,500		155,575
Pan Pacific Retail Properties, Inc.		2,200		146,036
Prentiss Properties Trust		15,500		564,820
ProLogis		42,900		1,726,296
Public Storage, Inc.		6,000		379,500
Regency Centers Corporation		5,700		326,040
Simon Property Group, Inc.		24,400		1,768,756
Sovran Self Storage, Inc.		800		36,368
Strategic Hotel Capital, L.L.C.		24,800		446,400
Trizec Properties, Inc.		20,600		423,742
United Dominion Realty Trust, Inc.		31,300		752,765
Ventas, Inc.		17,600		531,520
Vornado Realty Trust		3,900		313,560
Winston Hotels, Inc.		18,500		208,310
				24,129,476
Retail - Specialty Stores - 1.71%
Forest City Enterprises, Inc., Class A		7,613		540,523

TOTAL COMMON STOCKS - 97.83%			$	30,852,809

(Cost: $27,066,819)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 1.58%
USAA Capital Corp.,
3.15%, 7-6-05	$	500		499,781

Security and Commodity Brokers - 1.11%
Greenwich Capital Holdings Inc. (Royal Bank of Scotland PLC (The)),
3.4%, 7-1-05		349		349,000

TOTAL SHORT-TERM SECURITIES - 2.69%			$	848,781

(Cost: $848,781)

TOTAL INVESTMENT SECURITIES - 100.52%			$	31,701,590

(Cost: $27,915,600)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.52%)				(162,800	)


NET ASSETS - 100.00%			$	31,538,790


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      REAL ESTATE SECURITIES PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $27,916) (Notes 1 and 3)	$	31,702
Cash		1
Receivables:
Dividends and interest		130
Investment securities sold		40
Portfolio shares sold		13
Prepaid and other assets		- -	*

Total assets		31,886

LIABILITIES
Payable for investment securities purchased		316
Payable to Portfolio shareholders		21
Accrued accounting services fee (Note 2)		2
Accrued management fee (Note 2)		1
Accrued service fee (Note 2)		- -	*
Accrued shareholder servicing (Note 2)		- -	*
Other		7

Total liabilities		347

Total net assets	$	31,539

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	5
Additional paid-in capital		27,053
Accumulated undistributed income:
Accumulated undistributed net investment income		349
Accumulated undistributed net realized gain on investment transactions		346
Net unrealized appreciation in value of investments		3,786

Net assets applicable to outstanding units of capital	$	31,539

Net asset value, redemption and offering price per share	$	6.8586

Capital shares outstanding		4,598
Capital shares authorized		80,000

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      REAL ESTATE SECURITIES PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $2)	$	506
Interest and amortization		10

Total income		516

Expenses (Note 2):
Investment management fee		111
Service fee		31
Audit fees		12
Custodian fees		12
Accounting services fee		10
Legal fees		1
Shareholder servicing		1
Other		2

Total expenses		180

Net investment income		336

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		273
Realized net gain on foreign currency transactions		- -	*

Realized net gain on investments		273
Unrealized appreciation in value of investments during the period		1,340

Net gain on investments		1,613

Net increase in net assets resulting from operations	$	1,949

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      REAL ESTATE SECURITIES PORTFOLIO
      (In Thousands)                                                                                                                (Unaudited)


				For the period from 5-27-04⁽¹⁾ through 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income	$	336		$	114
Realized net gain on investments		273			303
Unrealized appreciation		1,340			2,446

Net increase in net assets resulting from operations		1,949			2,863

Distributions to shareholders from (Note 1E): ⁽²⁾
Net investment income		(-	)		(100	)
Realized gains on investment transactions		(-	)		(231	)

		(-	)		(331	)

Capital share transactions ⁽³⁾		10,418			16,640

Total increase		12,367			19,172
NET ASSETS
Beginning of period		19,172			- -

End of period	$	31,539		$	19,172

Undistributed net investment income	$	349		$	13


(1)Commencement of operations.
(2)See "Financial Highlights" on page 187.

(3)Shares issued from sale of shares		1,762			2,922
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			51
Shares redeemed		(106	)		(31	)

Increase in outstanding capital shares		1,656			2,942

Value issued from sale of shares	$	11,086		$	16,498
Value issued from reinvestment of dividend and/or capital gains distribution		- -			331
Value redeemed		(668	)		(189	)

Increase in outstanding capital	$	10,418		$	16,640

See Notes to Financial Statements.

Financial Highlights
      REAL ESTATE SECURITIES PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                            (Unaudited)


				For the period from 5-27-04⁽¹⁾ through 12-31-04

Net asset value, beginning of period	$	6.5176		$	5.0000

Income from investment operations:
Net investment income		0.0758			0.0396
Net realized and unrealized gain on investments		0.2652			1.5935

Total from investment operations		0.3410			1.6331

Less distributions from:
Net investment income	(0.0000		)	(0.0349		)
Capital gains	(0.0000		)	(0.0806		)

Total distributions	(0.0000		)	(0.1155		)

Net asset value, end of period	$	6.8586		$	6.5176

Total return		5.21	%		32.66	%
Net assets, end of period (in millions)		$32			$19
Ratio of expenses to average net assets including voluntary expense waiver		1.47	%⁽²⁾		1.21	%⁽²⁾
Ratio of net investment income to average net assets including voluntary expense waiver		2.72	%⁽²⁾		2.14	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver		NA			1.55	%⁽²⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver		NA			1.80	%⁽²⁾
Portfolio turnover rate		14	%		53	%

(1)Commencement of operations.
(2) Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF SCIENCE AND TECHNOLOGY PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Science and Technology Portfolio had net assets totaling $327,426,840 invested in a diversified portfolio of:


98.84%		Common Stocks
1.16%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Health Care Stocks	$	30.40
Technology Stocks	$	30.05
Multi-Industry Stocks	$	20.83
Business Equipment and Services Stocks	$	9.38
Financial Services Stocks	$	3.68
Consumer Services Stocks	$	2.32
Consumer Durables Stocks	$	1.96
Cash and Cash Equivalents	$	1.16
Utilities Stocks	$	0.22


The Investments of Science and Technology Portfolio
June 30, 2005		(Unaudited)
COMMON STOCKS	Shares		Value


Broadcasting - 2.32%
XM Satellite Radio Holdings Inc., Class A*	225,500	$	7,589,203

Business Equipment and Services - 5.80%
CheckFree Corporation*	171,200		5,830,216
Euronet Worldwide, Inc.*	257,950		7,503,765
Headwaters Incorporated*	164,500		5,655,510
			18,989,491
Computers - Micro - 1.50%
Dell Inc.*	124,200		4,899,069

Computers - Peripherals - 11.68%
BEA Systems, Inc.*	356,800		3,130,920
Check Point Software Technologies Ltd.*	39,300		779,516
Microsoft Corporation	294,600		7,313,445
Oracle Corporation*	461,400		6,092,787
Red Hat, Inc.*	426,600		5,586,327
SAP Aktiengesellschaft, ADR	76,000		3,290,800
Symantec Corporation*	250,100		5,438,424
Symbol Technologies, Inc.	668,440		6,597,503
			38,229,722
Consumer Electronics - 1.96%
Garmin Ltd.	150,100		6,419,777

Electronic Components - 15.39%
Advanced Micro Devices, Inc.*	185,800		3,221,772
Broadcom Corporation, Class A*	193,100		6,860,843
Intel Corporation	183,000		4,762,575
Maxim Integrated Products, Inc.	85,200		3,253,362
MediaTek Incorporation (A)	390,006		3,386,257
Microchip Technology Incorporated	316,600		9,390,356
Micron Technology, Inc.*	448,400		4,578,164
Samsung Electronics Co., Ltd. (A)	24,600		11,747,124
Texas Instruments Incorporated	113,400		3,183,138
			50,383,591
Electronic Instruments - 1.48%
ASML Holding N.V., Ordinary Shares*	189,000		2,960,685
Mattson Technology, Inc.*	265,100		1,890,163
			4,850,848
Health Care - Drugs - 6.93%
Amgen Inc.*	86,800		5,247,494
Genzyme Corporation*	155,400		9,335,655
IVAX Corporation*	377,500		8,116,250
			22,699,399
Health Care - General - 2.16%
Advanced Medical Optics, Inc.*	178,100		7,079,475

Hospital Supply and Management - 21.31%
Cerner Corporation*	329,500		22,397,762
Guidant Corporation	71,600		4,818,680
PacifiCare Health Systems, Inc.*	73,800		5,273,010
Triad Hospitals, Inc.*	213,200		11,649,248
UnitedHealth Group Incorporated	131,800		6,872,052
WellCare Health Plans, Inc.*	311,700		11,068,467
WellPoint, Inc.*	110,400		7,688,256
			69,767,475
Multiple Industry - 20.83%
Cogent, Inc.*	94,700		2,701,791
Dolby Laboratories, Inc., Class A*	169,700		3,743,582
Google Inc., Class A*	56,300		16,560,363
Infosys Technologies Limited	92,100		7,140,974
NAVTEQ Corporation*	92,600		3,442,868
PRA International*	133,700		3,575,138
PortalPlayer, Inc.*	164,300		3,427,298
Research In Motion Limited*	221,300		16,324,195
Telvent GIT, S.A.*	160,300		1,663,914
UbiquiTel Inc.*	346,300		2,827,540
VeriFone Holdings, Inc.*	267,000		4,338,750
Volterra Semiconductor Corporation*	166,000		2,466,760
			68,213,173
Security and Commodity Brokers - 3.68%
Chicago Mercantile Exchange Holdings Inc.	40,800		12,056,400

Timesharing and Software - 3.58%
Alliance Data Systems Corporation*	288,500		11,701,560

Utilities - Telephone - 0.22%
Silicon Motion Technology Corporation, ADR*	69,500		729,750

TOTAL COMMON STOCKS - 98.84%		$	323,608,933

(Cost: $261,493,205)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Aluminum - 0.36%
Alcoa Incorporated,
3.4%, 7-1-05	$	1,188		1,188,000

Finance Companies - 1.22%
USAA Capital Corp.,
3.15%, 7-6-05		4,000		3,998,250

TOTAL SHORT-TERM SECURITIES - 1.58%			$	5,186,250

(Cost: $5,186,250)

TOTAL INVESTMENT SECURITIES - 100.42%			$	328,795,183

(Cost: $266,679,455)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.42%)				(1,368,343	)


NET ASSETS - 100.00%			$	327,426,840

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      SCIENCE AND TECHNOLOGY PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $266,679) (Notes 1 and 3)	$	328,795
Cash		346
Receivables:
Investment securities sold		497
Portfolio shares sold		41
Prepaid and other assets		5

Total assets		329,684

LIABILITIES
Payable for investment securities purchased		2,165
Payable to Portfolio shareholders		48
Accrued accounting services fee (Note 2)		8
Accrued management fee (Note 2)		8
Accrued shareholder servicing (Note 2)		3
Accrued service fee (Note 2)		2
Other		23

Total liabilities		2,257

Total net assets	$	327,427

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	22
Additional paid-in capital		306,314
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(1,393	)
Accumulated undistributed net realized loss on investment transactions		(39,632	)
Net unrealized appreciation in value of investments		62,116

Net assets applicable to outstanding units of capital	$	327,427

Net asset value, redemption and offering price per share	$	14.9620

Capital shares outstanding		21,884
Capital shares authorized		60,000

See Notes to Financial Statements.

Statement of Operations
      SCIENCE AND TECHNOLOGY PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Dividends (net of foreign withholding taxes of $13)	$	342
Interest and amortization		101

Total income		443

Investment management fee		1,319
Service fee		388
Accounting services fee		47
Custodian fees		15
Audit fees		9
Shareholder servicing		5
Legal fees		4
Other		41

Total expenses		1,828

Net investment loss		(1,385	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		20,235
Realized net loss on purchased options		(36	)
Realized net gain on foreign currency transactions		1

Realized net gain on investments		20,200
Unrealized depreciation in value of investments during the period		(6,662	)

Net gain on investments		13,538

Net increase in net assets resulting from operations	$	12,153

See Notes to Financial Statements.

Statement of Changes in Net Assets
      SCIENCE AND TECHNOLOGY PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended 6-30-05			For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment loss	$	(1,385	)	$	(1,678	)
Realized net gain on investments		20,200			20,904
Unrealized appreciation (depreciation)		(6,662	)		25,077

Net increase in net assets resulting from operations		12,153			44,303

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(-	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(-	)

Capital share transactions ⁽²⁾		(6,249	)		8,761

Total increase		5,904			53,064
NET ASSETS
Beginning of period		321,523			268,459

End of period	$	327,427		$	321,523

Undistributed net investment loss	$	(1,393	)		$(9	)


(1)See "Financial Highlights" on page 195.

(2)Shares issued from sale of shares		783			2,648
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			- -
Shares redeemed		(1,225	)		(1,992	)

Increase (decrease) in outstanding capital shares		(442	)		656

Value issued from sale of shares	$	11,054		$	34,217
Value issued from reinvestment of dividend and/or capital gains distribution		- -			- -
Value redeemed		(17,303	)		(25,456	)

Increase (decrease) in outstanding capital	$	(6,249	)	$	8,761

See Notes to Financial Statements.

Financial Highlights
      SCIENCE AND TECHNOLOGY PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	14.4014		$	12.3883		$	9.4961		$	12.4927		$	14.2542		$	22.4087

Income (loss) from investment operations:
Net investment income (loss)			(0.0633	)		(0.0751	)		(0.0521	)		(0.0245	)		0.0584			0.1151
Net realized and unrealized gain (loss) on investments			0.6239			2.0882			2.9443			(2.9720	)		(1.7571	)		(4.8532	)

Total from investment operations			0.5606			2.0131			2.8922			(2.9965	)		(1.6987	)		(4.7381	)

Less distributions from:
Net investment income			(0.0000	)		(0.0000	)		(0.0000	)		(0.0001	)		(0.0589	)		(0.1151	)
Capital gains			(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.0039	)		(3.3013	)

Total distributions			(0.0000	)		(0.0000	)		(0.0000	)		(0.0001	)		(0.0628	)		(3.4164	)

Net asset value, end of period		$	14.9620		$	14.4014		$	12.3883		$	9.4961		$	12.4927		$	14.2542

Total return			3.89	%		16.25	%		30.46	%		- -23.99	%		- -11.91	%		- -21.15	%
Net assets, end of period (in millions)			$327			$322			$268			$195			$267			$295
Ratio of expenses to average net assets			1.18	%⁽¹⁾		1.17	%		1.16	%		1.17	%		1.15	%		1.14	%
Ratio of net investment income (loss) to average net assets			- -0.89	%⁽¹⁾		- -0.59	%		- -0.52	%		- -0.23	%		0.47	%		0.64	%
Portfolio turnover rate			51	%		107	%		116	%		92	%		93	%		94	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF SMALL CAP GROWTH PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Small Cap Growth Portfolio had net assets totaling $592,752,470 invested in a diversified portfolio of:


96.43%		Common Stocks
3.57%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Technology Stocks	$	25.67
Health Care Stocks	$	19.18
Business Equipment and Services Stocks	$	18.38
Consumer Nondurables Stocks	$	7.50
Retail Stocks	$	6.02
Energy Stocks	$	5.50
Miscellaneous Stocks	$	5.25
Capital Goods Stocks	$	3.71
Cash and Cash Equivalents	$	3.57
Financial Services Stocks	$	2.71
Consumer Services Stocks	$	2.51


The Investments of Small Cap Growth Portfolio
June 30, 2005		(Unaudited)
COMMON STOCKS	Shares		Value


Apparel - 3.73%
Oxford Industries, Inc.	303,500	$	13,065,675
Quiksilver, Inc.*	564,200		9,015,916
			22,081,591
Banks - 1.33%
City National Corporation	110,100		7,895,271

Business Equipment and Services - 10.70%
CheckFree Corporation*	374,855		12,765,687
DiamondCluster International, Inc.*	24,000		270,360
Headwaters Incorporated*	238,800		8,209,944
Jacobs Engineering Group Inc.*	137,100		7,713,246
Macrovision Corporation*	507,200		11,434,824
Resources Connection, Inc.*	656,064		15,217,404
Strayer Education, Inc.	90,300		7,791,987
			63,403,452
Capital Equipment - 2.77%
Chicago Bridge & Iron Company N.V., NY Shares	382,500		8,743,950
Cooper Cameron Corporation*	123,600		7,669,380
			16,413,330
Chemicals - Specialty - 1.13%
Minerals Technologies Inc.	109,200		6,726,720

Communications Equipment - 6.55%
ADC Telecommunications, Inc.*	197,242		4,294,945
ADTRAN, Inc.	352,150		8,728,038
Andrew Corporation*	462,100		5,894,085
Plantronics, Inc.	380,400		13,831,344
Tekelec*	360,400		6,056,522
			38,804,934
Computers - Peripherals - 13.34%
Allscripts Healthcare Solutions, Inc.*	329,200		5,459,782
Avid Technology, Inc.*	218,300		11,638,664
Cognex Corporation	404,500		10,585,765
Epicor Software Corporation*	366,100		4,823,367
Kronos Incorporated*	208,500		8,417,145
MICROS Systems, Inc.*	226,400		10,103,100
Nautilus Group, Inc. (The)	529,900		15,102,150
Red Hat, Inc.*	479,200		6,275,124
Take-Two Interactive Software, Inc.*	261,900		6,666,665
			79,071,762
Cosmetics and Toiletries - 2.01%
Nu Skin Enterprises, Inc., Class A	510,500		11,894,650

Electrical Equipment - 0.94%
Microsemi Corporation*	296,600		5,574,597

Electronic Components - 1.40%
FormFactor, Inc.*	314,300		8,292,805

Electronic Instruments - 4.38%
FLIR Systems, Inc.*	436,000		13,032,040
WMS Industries Inc.*	383,450		12,941,437
			25,973,477
Finance Companies - 1.38%
Financial Federal Corporation	212,450		8,209,068

Food and Related - 1.76%
J.M. Smucker Company (The)	221,900		10,415,986

Health Care - Drugs - 3.59%
Angiotech Pharmaceuticals, Inc.*	333,200		4,613,154
Encysive Pharmaceuticals Inc.*	237,500		2,568,562
MGI PHARMA, INC.*	115,800		2,519,229
Martek Biosciences Corporation*	268,824		10,205,903
NPS Pharmaceuticals, Inc.*	122,400		1,389,852
			21,296,700
Health Care - General - 9.43%
Advanced Neuromodulation Systems, Inc.*	230,550		9,144,766
American Medical Systems Holdings, Inc.*	285,400		5,889,229
Digene Corporation*	321,400		8,888,317
Hologic, Inc.*	181,600		7,231,312
ResMed Inc.*	133,250		8,793,168
Schein (Henry), Inc.*	220,900		9,181,709
Wright Medical Group, Inc.*	254,150		6,797,242
			55,925,743
Hospital Supply and Management - 6.16%
Advisory Board Company (The)*	154,703		7,547,959
Cerner Corporation*	246,856		16,780,037
VCA Antech, Inc.*	256,500		6,221,408
WellCare Health Plans, Inc.*	167,300		5,940,823
			36,490,227
Leisure Time Industry - 1.30%
THQ Inc.*	264,200		7,730,492

Motor Vehicle Parts - 0.85%
Gentex Corporation	275,700		5,019,118

Multiple Industry - 1.55%
FoxHollow Technologies, Inc.*	208,100		7,941,096
PortalPlayer, Inc.*	47,600		992,936
Volcom, Inc.*	8,500		228,905
			9,162,937
Petroleum - Domestic - 1.40%
Western Gas Resources, Inc.	238,100		8,309,690

Petroleum - International - 2.29%
Newfield Exploration Company*	340,800		13,594,512

Petroleum - Services - 1.81%
Patterson-UTI Energy, Inc.	384,950		10,715,083

Publishing - 1.21%
Getty Images, Inc.*	96,962		7,200,398

Railroad - 1.47%
Kansas City Southern*	431,850		8,714,733

Restaurants - 1.04%
Red Robin Gourmet Burgers, Inc.*	99,900		6,183,311

Retail - Specialty Stores - 4.98%
Guitar Center, Inc.*	137,300		8,014,888
O'Reilly Automotive, Inc.*	384,400		11,468,574
Tractor Supply Company*	203,900		10,009,451
			29,492,913
Timesharing and Software - 7.68%
Audible, Inc.*	162,300		2,815,093
CoStar Group, Inc.*	11,500		501,860
Digitas Inc.*	841,350		9,595,597
FactSet Research Systems, Inc.	416,525		14,928,256
MicroStrategy Incorporated, Class A*	145,550		7,709,784
Zebra Technologies Corporation, Class A*	227,000		9,953,950
			45,504,540
Utilities - Telephone - 0.25%
NeuStar, Inc., Class A*	57,700		1,477,120

TOTAL COMMON STOCKS - 96.43%		$	571,575,160

(Cost: $443,466,985)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Aluminum - 0.41%
Alcoa Incorporated,
3.4%, 7-1-05	$	2,448		2,448,000

Capital Equipment - 0.67%
Caterpillar Inc.,
3.25%, 7-8-05		4,000		3,997,472

Finance Companies - 0.84%
USAA Capital Corp.,
3.15%, 7-6-05		5,000		4,997,813

Food and Related - 1.35%
General Mills, Inc.,
3.31%, 7-7-05		4,000		3,997,793
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
3.3%, 7-8-05		4,000		3,997,433
				7,995,226
Health Care - General - 0.85%
Baxter International Inc.,
3.3%, 7-5-05		5,000		4,998,167

Household - General Products - 0.57%
Procter & Gamble Company (The),
3.37%, 7-1-05		3,351		3,351,000

Multiple Industry - 0.37%
Detroit Edison Co.,
3.34%, 7-1-05		2,200		2,200,000

TOTAL SHORT-TERM SECURITIES - 5.06%			$	29,987,678

(Cost: $29,987,678)

TOTAL INVESTMENT SECURITIES - 101.49%			$	601,562,838

(Cost: $473,454,663)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.49%)				(8,810,368	)


NET ASSETS - 100.00%			$	592,752,470


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      SMALL CAP GROWTH PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $473,455) (Notes 1 and 3)	$	601,563
Cash		9
Receivables:
Investment securities sold		817
Dividends and interest		11
Portfolio shares sold		9
Prepaid and other assets		8

Total assets		602,417

LIABILITIES
Payable for investment securities purchased		9,364
Payable to Portfolio shareholders		233
Accrued management fee (Note 2)		14
Accrued accounting services fee (Note 2)		13
Accrued shareholder servicing (Note 2)		5
Accrued service fee (Note 2)		4
Other		32

Total liabilities		9,665

Total net assets	$	592,752

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	58
Additional paid-in capital		537,699
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(1,876	)
Accumulated undistributed net realized loss on investment transactions		(71,237	)
Net unrealized appreciation in value of securities		128,108

Net assets applicable to outstanding units of capital	$	592,752

Net asset value, redemption and offering price per share	$	10.2168

Capital shares outstanding		58,017
Capital shares authorized		140,000

See Notes to Financial Statements.

Statement of Operations
      SMALL CAP GROWTH PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                             (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Dividends (net of foreign withholding taxes of $3)	$	1,032
Interest and amortization		447

Total income		1,479

Expenses (Note 2):
Investment management fee		2,428
Service fee		714
Accounting services fee		77
Custodian fees		16
Audit fees		14
Legal fees		8
Shareholder servicing		8
Other		77

Total expenses		3,342

Net investment loss		(1,863	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		37,107
Realized net loss on purchased options		(334	)

Realized net gain on investments		36,773
Unrealized depreciation in value of investments during the period		(3,654	)

Net gain on investments		33,119

Net increase in net assets resulting from operations	$	31,256

See Notes to Financial Statements.

Statement of Changes in Net Assets
      SMALL CAP GROWTH PORTFOLIO
      (In Thousands)                                                                                                                 (Unaudited)


	For the six months ended				For the fiscal year ended
	6-30-05				12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment loss		$	(1,863	)	$	(4,510	)
Realized net gain on investments			36,773			57,799
Unrealized appreciation (depreciation)			(3,654	)		20,383

Net increase in net assets resulting from operations			31,256			73,672


Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income			(-	)		(-	)
Realized gains on investment transactions			(-	)		(-	)

			(-	)		(-	)

Capital share transactions ⁽²⁾			(27,588	)		(28,909	)

Total increase			3,668			44,763
NET ASSETS
Beginning of period			589,084			544,321

End of period		$	592,752		$	589,084

Undistributed net investment loss		$	(1,876	)	$	(13	)


(1)See "Financial Highlights" on page 204.

(2) Shares issued from sale of shares			1,713			4,981
Shares issued from reinvestment of dividend and/or capital gains distribution			- -			- -
Shares redeemed			(4,545	)		(8,394	)

Decrease in outstanding capital shares			(2,832	)		(3,413	)

Value issued from sale of shares		$	16,369		$	43,643
Value issued from reinvestment of dividend and/or capital gains distribution			- -			- -
Value redeemed			(43,957	)		(72,552	)
Decrease in outstanding capital		$	(27,588	)	$	(28,909	)

See Notes to Financial Statements.

Financial Highlights
      SMALL CAP GROWTH PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	9.6810		$	8.4703		$	6.2388		$	7.9770		$	8.1345		$	11.6130

Income (loss) from investment operations:
Net investment income (loss)			(0.0321	)	(0.0741		)	(0.0485		)	(0.0458		)	(0.0103		)		0.0717
Net realized and unrealized gain (loss) on investments			0.5679			1.2848			2.2800		(1.6924		)	(0.1471		)		(1.5051	)

Total from investment operations			0.5358			1.2107			2.2315		(1.7382		)	(0.1574		)		(1.4334	)

Less distributions from:
Net investment income			(0.0000	)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)*		(0.0717	)
Capital gains			(0.0000	)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0001		)		(1.9734	)

Total distributions			(0.0000	)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0001		)		(2.0451	)

Net asset value, end of period		$	10.2168		$	9.6810		$	8.4703		$	6.2388		$	7.9770		$	8.1345

Total return			5.53	%		14.29	%		35.77	%		- -21.79	%		- -1.93	%		- -12.35	%
Net assets, end of period (in millions)			$593			$589			$544			$279			$359			$345
Ratio of expenses to average net assets			1.17	%⁽¹⁾		1.17	%		1.15	%		1.15	%		1.14	%		1.13	%
Ratio of net investment income (loss) to average net assets			- -0.65	%⁽¹⁾		- -0.82	%		- -0.88	%		- -0.66	%		- -0.14	%		0.68	%
Portfolio turnover rate			36	%		96	%		86	%		35	%		30	%		58	%

*Not shown due to rounding.
(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF SMALL CAP VALUE PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Small Cap Value Portfolio had net assets totaling $147,869,265 invested in a diversified portfolio of:


96.88%		Common Stocks
3.12%		Cash and Cash Equivalents

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Financial Services Stocks	$	17.80
Multi-Industry Stocks	$	9.92
Consumer Nondurables Stocks	$	9.32
Retail Stocks	$	8.16
Business Equipment and Services Stocks	$	8.02
Consumer Services Stocks	$	7.69
Utilities Stocks	$	7.42
Technology Stocks	$	7.19
Shelter Stocks	$	5.75
Health Care Stocks	$	5.50
Capital Goods Stocks	$	4.23
Energy Stocks	$	3.88
Cash and Cash Equivalents	$	3.12
Miscellaneous Stocks	$	2.00


The Investments of Small Cap Value Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares		Value


Apparel - 0.57%
Reebok International Ltd.	20,100	$	840,783

Banks - 6.42%
Central Pacific Financial Corp.	31,700		1,128,520
First Niagara Financial Group, Inc.	140,400		2,046,330
Gold Banc Corporation, Inc.	150,700		2,193,438
Irwin Financial Corporation	60,400		1,340,276
Trustmark Corporation	73,000		2,135,615
Wintrust Financial Corporation	12,400		649,078
			9,493,257
Business Equipment and Services - 6.26%
Brink's Company (The)	80,800		2,908,800
Heidrick & Struggles International, Inc.*	45,200		1,181,076
Laidlaw International, Inc.*	152,600		3,677,660
Lennox International Inc.	34,300		726,131
ProQuest Company*	23,300		764,007
			9,257,674
Capital Equipment - 1.20%
Actuant Corporation, Class A*	22,200		1,064,268
Manitowoc Company, Inc. (The)	17,400		713,748
			1,778,016
Chemicals - Petroleum and Inorganic - 0.48%
NuCO2 Inc.*	27,800		711,541

Coal - 1.95%
Foundation Coal Holdings, Inc.	69,100		1,792,454
Massey Energy Company	28,900		1,090,108
			2,882,562
Communications Equipment - 1.13%
ADTRAN, Inc.	42,000		1,040,970
Polycom, Inc.*	41,900		624,938
			1,665,908
Computers - Micro - 0.92%
Tech Data Corporation*	37,053		1,356,325

Computers - Peripherals - 1.99%
Borland Software Corporation*	165,100		1,133,412
Novatel Wireless, Inc.*	64,000		796,800
TIBCO Software Inc.*	155,365		1,013,757
			2,943,969
Construction Materials - 1.11%
Walter Industries, Inc.	40,700		1,636,140

Containers - 3.90%
AptarGroup, Inc.	24,200		1,229,360
Crown Holdings, Inc.*	92,700		1,319,121
Jarden Corporation*	48,100		2,593,552
Packaging Corporation of America	29,800		627,290
			5,769,323
Cosmetics and Toiletries - 0.87%
Nu Skin Enterprises, Inc., Class A	55,100		1,283,830

Defense - 0.47%
Alliant Techsystems Inc.*	9,800		691,880

Electronic Components - 2.18%
Axcelis Technologies, Inc.*	129,600		889,704
Brooks Automation, Inc.*	42,100		625,606
Integrated Device Technology, Inc.*	62,200		668,339
Thomas & Betts Corporation*	36,600		1,033,584
			3,217,233
Electronic Instruments - 0.50%
AMETEK, Inc.	17,800		744,930

Finance Companies - 1.89%
Allmerica Financial Corporation*	69,900		2,592,591
CompuCredit Corporation*	5,800		199,027
			2,791,618
Food and Related - 3.34%
Chiquita Brands International Inc.	53,000		1,455,380
Hain Celestial Group, Inc. (The)*	75,100		1,464,074
John B. Sanfilippo & Son, Inc.*	23,600		541,856
Lance, Inc.	43,300		742,812
Ralcorp Holdings, Inc.	17,900		736,585
			4,940,707
Forest and Paper Products - 1.79%
Bowater Incorporated	24,900		806,013
Owens-Illinois, Inc.*	47,100		1,179,855
Smurfit-Stone Container Corporation	65,700		665,869
			2,651,737
Health Care - General - 3.75%
Amedisys, Inc.*	44,900		1,653,892
dj Orthopedics, Inc.*	54,747		1,501,710
Sybron Dental Specialties, Inc.*	63,600		2,392,632
			5,548,234
Homebuilders, Mobile Homes - 1.03%
Fleetwood Enterprises, Inc.*	150,500		1,527,575

Hospital Supply and Management - 1.75%
LifePoint Hospitals, Inc.*	51,159		2,586,343

Hotels and Gaming - 2.89%
Gaylord Entertainment Company*	65,900		3,063,691
Kerzner International Limited*	21,300		1,213,035
			4,276,726
Household - General Products - 0.64%
Church & Dwight Co., Inc.	26,200		948,440

Household - Major Appliances - 0.82%
Briggs & Stratton Corporation	35,000		1,211,700

Insurance - Life - 1.26%
Universal American Financial Corp.*	82,500		1,867,387

Insurance - Property and Casualty - 2.79%
Max Re Capital Ltd.	112,700		2,582,521
PXRE Group Ltd.	61,200		1,543,464
			4,125,985
Leisure Time Industry - 2.29%
Brunswick Corporation	23,200		1,005,024
K2 Inc.*	54,200		687,256
RC2 Corporation*	31,400		1,181,425
Steiner Leisure Limited*	13,700		507,174
			3,380,879
Motor Vehicle Parts - 0.70%
Tenneco Automotive Inc.*	62,400		1,038,336

Multiple Industry - 9.92%
Alpha Natural Resources, Inc.*	49,600		1,184,448
Aspen Insurance Holdings Limited	53,300		1,468,948
DSW Inc., Class A*	3,900		97,305
FreightCar America, Inc.*	39,600		783,288
Montpelier Re Holdings Ltd.	43,316		1,497,867
NorthWestern Corporation	70,600		2,222,488
PHH Corporation*	25,700		661,004
Platinum Underwriters Holdings, Ltd.	17,600		560,032
Prestige Brands Holdings, Inc.*	101,100		1,971,450
Sunstone Hotel Investors, Inc.	30,900		749,634
Symmetry Medical Inc.*	43,800		1,031,052
TreeHouse Foods, Inc.*	46,100		1,314,311
U-Store-It Trust	58,800		1,120,140
			14,661,967
Non-Residential Construction - 1.92%
Washington Group International, Inc.*	55,500		2,838,825

Petroleum - Domestic - 0.75%
Whiting Petroleum Corporation*	30,600		1,111,086

Petroleum - International - 1.18%
Forest Oil Corporation*	17,100		718,200
Vintage Petroleum, Inc.	33,900		1,032,933
			1,751,133
Publishing - 2.51%
Banta Corporation	63,500		2,880,360
PRIMEDIA Inc.*	205,000		830,250
			3,710,610
Real Estate Investment Trust - 2.93%
Accredited Home Lenders Holding Co.*	48,200		2,119,595
Heritage Property Investment Trust, Inc.	15,100		528,802
Highland Hospitality Corporation	22,300		233,035
HomeBanc Corp.	108,700		988,083
Rayonier Inc.	8,665		459,505
			4,329,020
Restaurants - 1.75%
Landry's Restaurants, Inc.	49,300		1,483,437
Triarc Companies, Inc.	68,100		1,096,410
			2,579,847
Retail - General Merchandise - 2.93%
BJ's Wholesale Club, Inc.*	46,300		1,504,287
Saks Incorporated*	79,400		1,506,218
Stage Stores, Inc.*	30,300		1,319,111
			4,329,616
Retail - Specialty Stores - 3.48%
AnnTaylor Stores Corporation*	68,200		1,655,896
Handleman Company	38,100		629,031
Regis Corporation	18,700		730,796
Sports Authority, Inc. (The)*	67,200		2,136,960
			5,152,683
Savings and Loans - 3.53%
Flagstar Bancorp, Inc.	78,000		1,476,540
Sterling Financial Corporation*	57,100		2,134,113
Washington Federal, Inc.	68,600		1,612,443
			5,223,096
Security and Commodity Brokers - 1.91%
Affiliated Managers Group, Inc.*	41,300		2,822,029

Timesharing and Software - 1.76%
Digitas Inc.*	67,200		766,416
Hyperion Solutions Corporation*	20,500		824,100
Manhattan Associates, Inc.*	52,700		1,011,576
			2,602,092
Utilities - Electric - 4.35%
CMS Energy Corporation*	97,800		1,472,868
DPL Inc.	26,900		738,405
PNM Resources, Inc.	84,000		2,420,040
Reliant Energy, Inc.*	85,800		1,062,204
Wisconsin Energy Corporation	18,900		737,100
			6,430,617
Utilities - Gas and Pipeline - 1.60%
Energen Corporation	43,800		1,535,190
UGI Corporation	30,000		837,000
			2,372,190
Utilities - Telephone - 1.47%
Dobson Communications Corporation, Class A*	211,500		904,163
US Unwired Inc.*	218,500		1,267,300
			2,171,463

TOTAL COMMON STOCKS - 96.88%		$	143,255,312

(Cost: $133,215,980)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 2.03%
USAA Capital Corp.,
3.15%, 7-6-05	$	3,000		2,998,687

Food and Related - 1.35%
Wm. Wrigley Jr. Company,
3.25%, 7-14-05		2,000		1,997,653

Multiple Industry - 1.35%
Detroit Edison Co.,
3.29%, 7-1-05		2,000		2,000,000

Security and Commodity Brokers - 1.91%
Greenwich Capital Holdings Inc. (Royal Bank of Scotland PLC (The)),
3.4%, 7-1-05		2,827		2,827,000

TOTAL SHORT-TERM SECURITIES - 6.64%			$	9,823,340

(Cost: $9,823,340)

TOTAL INVESTMENT SECURITIES - 103.52%			$	153,078,652

(Cost: $143,039,320)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (3.52%)				(5,209,387	)


NET ASSETS - 100.00%			$	147,869,265


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      SMALL CAP VALUE PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $143,039) (Notes 1 and 3)	$	153,079
Cash		1
Receivables:
Portfolio shares sold		96
Dividends and interest		73
Investment securities sold		40
Prepaid and other assets		2

Total assets		153,291

LIABILITIES
Payable for investment securities purchased		5,389
Payable to Portfolio shareholders		7
Accrued accounting services fee (Note 2)		5
Accrued management fee (Note 2)		4
Accrued service fee (Note 2)		1
Accrued shareholder servicing (Note 2)		1
Other		15

Total liabilities		5,422

Total net assets	$	147,869

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	9
Additional paid-in capital		116,129
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(13	)
Accumulated undistributed net realized gain on investment transactions		21,705
Net unrealized appreciation in value of investments		10,039

Net assets applicable to outstanding units of capital	$	147,869

Net asset value, redemption and offering price per share	$	16.7558

Capital shares outstanding		8,825
Capital shares authorized		80,000

See Notes to Financial Statements.

Statement of Operations
      SMALL CAP VALUE PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Dividends	$	742
Interest and amortization		84

Total income		826

Expenses (Note 2):
Investment management fee		573
Service fee		169
Accounting services fee		31
Custodian fees		22
Legal fees		12
Audit fees		10
Shareholder servicing		2
Other		19

Total expenses		838

Net investment loss		(12	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments	20,672
Unrealized depreciation in value of investments during the period	(19,074		)

Net gain on investments		1,598

Net increase in net assets resulting from operations	$	1,586

See Notes to Financial Statements.

Statement of Changes in Net Assets
      SMALL CAP VALUE PORTFOLIO
      (In Thousands)                                                                                                                (Unaudited)


	For the six months ended 6-30-05			For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment loss	$	(12	)	$	(451	)
Realized net gain on investments		20,672			10,254
Unrealized appreciation (depreciation)		(19,074	)		6,636

Net increase in net assets resulting from operations		1,586			16,439


Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(-	)
Realized gains on investment transactions		(-	)		(6,400	)

		(-	)		(6,400	)

Capital share transactions ⁽²⁾		14,652			25,692

Total increase		16,238			35,731
NET ASSETS
Beginning of period		131,631			95,900

End of period	$	147,869		$	131,631

Undistributed net investment loss	$	(13	)	$	(1	)


(1)See "Financial Highlights" on page 215.

(2) Shares issued from sale of shares		1,244			2,044
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			385
Shares redeemed		(333	)		(824	)

Increase in outstanding capital shares		911			1,605

Value issued from sale of shares	$	20,030		$	32,292
Value issued from reinvestment of dividend and/or capital gains distribution		- -			6,400
Value redeemed		(5,378	)		(13,000	)

Increase in outstanding capital	$	14,652		$	25,692

See Notes to Financial Statements.

Financial Highlights
      SMALL CAP VALUE PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,
	6-30-05				2004			2003			2002			2001			2000

Net asset value, beginning of period		$	16.6329		$	15.2013		$	10.2000		$	12.7000		$	11.6000		$	9.1000

Income (loss) from investment operations:
Net investment income (loss)			(0.0014	)		(0.0569	)		(0.0364	)		0.0000			0.0000			0.0000
Net realized and unrealized gain (loss) on investments			0.1243			2.3402			5.0377			(2.5000	)		1.8000			2.5000

Total from investment operations			0.1229			2.2833			5.0013			(2.5000	)		1.8000			2.5000

Less distributions from:
Net investment income			(0.0000	)		(0.0000	)		(0.0000	)		(0.0000	)		(0.6000	)		(0.0000	)
Capital gains			(0.0000	)		(0.8517	)		(0.0000	)		(0.0000	)		(0.1000	)		(0.0000	)

Total distributions			(0.0000	)		(0.8517	)		(0.0000	)		(0.0000	)		(0.7000	)		(0.0000	)

Net asset value, end of period		$	16.7558		$	16.6329		$	15.2013		$	10.2000		$	12.7000		$	11.6000

Total return			0.74	%		15.02	%		49.48	%		- -19.98	%		15.59	%		28.00	%
Net assets, end of period (in millions)			$148			$132			$96			$55			$41			$23
Ratio of expenses to average net assets including voluntary expense waiver			1.24	%⁽¹⁾		1.23	%		1.15	%		1.10	%		1.10	%		1.05	%
Ratio of net investment income (loss) to average net assets including voluntary expense waiver			- -0.02	%⁽¹⁾		- -0.43	%		- -0.34	%		- -0.43	%		- -0.16	%		0.29	%
Ratio of expenses to average net assets excluding voluntary expense waiver			NA			NA			1.19	%		1.17	%		1.22	%		1.58	%
Ratio of net investment loss to average net assets excluding voluntary expense waiver			NA			NA			- -0.38	%		- -0.50	%		- -0.28	%		- -0.24	%
Portfolio turnover rate			107	%		32	%		51	%		39	%		23	%		122	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF VALUE PORTFOLIO

Portfolio Highlights

On June 30, 2005, W&R Target Value Portfolio had net assets totaling $354,318,191 invested in a diversified portfolio of:


98.07%		Common Stocks
1.71%		Cash and Cash Equivalents
0.22%		Preferred Stock

As a shareholder of the Portfolio, for every $100 you had invested on June 30, 2005, your Portfolio owned:


Financial Services Stocks	$	28.62
Energy Stocks	$	12.79
Technology Stocks	$	12.19
Utilities Stocks	$	11.03
Health Care Stocks	$	5.94
Consumer Nondurables Stocks	$	5.91
Consumer Services Stocks	$	5.37
Multi-Industry Stocks	$	3.89
Raw Materials Stocks	$	3.17
Business Equipment and Services Stocks	$	2.81
Miscellaneous Stocks	$	2.25
Retail Stocks	$	2.05
Shelter Stocks	$	2.05
Cash and Cash Equivalents	$	1.71
Preferred Stock	$	0.22


The Investments of Value Portfolio
June 30, 2005			(Unaudited)
COMMON STOCKS	Shares		Value


Aircraft - 2.41%
Lockheed Martin Corporation	131,500	$	8,530,405

Aluminum - 0.54%
Alcoa Incorporated	72,800		1,902,264

Banks - 10.46%
Bank of America Corporation	255,600		11,657,916
Citigroup Inc.	225,506		10,425,142
MBNA Corporation	49,700		1,300,152
Mellon Financial Corporation	228,400		6,552,796
Wachovia Corporation	56,500		2,802,400
Wells Fargo & Company	70,000		4,310,600
			37,049,006
Beverages - 1.80%
Diageo plc, ADR (A)	59,300		3,516,490
Molson Coors Brewing Company, Class B (A)	46,000		2,852,000
			6,368,490
Broadcasting - 1.52%
Viacom Inc., Class B	168,500		5,395,370

Business Equipment and Services - 2.81%
ARAMARK Corporation, Class B	199,500		5,266,800
Waste Management, Inc.	165,400		4,687,436
			9,954,236
Capital Equipment - 1.19%
Illinois Tool Works Inc.	52,900		4,215,072

Chemicals - Petroleum and Inorganic - 1.63%
Dow Chemical Company (The)	66,900		2,979,057
du Pont (E.I.) de Nemours and Company (A)	65,300		2,808,553
			5,787,610
Chemicals - Specialty - 1.00%
Air Products and Chemicals, Inc.	29,400		1,772,820
Scotts Miracle-Gro Company (The)*	25,100		1,787,371
			3,560,191
Communications Equipment - 1.07%
Cisco Systems, Inc.*	199,000		3,799,905

Computers - Main and Mini - 0.66%
International Business Machines Corporation	31,700		2,352,140

Computers - Peripherals - 6.21%
Amdocs Limited*	119,700		3,163,671
Lexmark International, Inc., Class A (A)*	43,400		2,813,622
Microsoft Corporation	176,800		4,389,060
Oracle Corporation*	434,900		5,742,855
Symantec Corporation (A)*	270,400		5,879,848
			21,989,056
Cosmetics and Toiletries - 0.89%
NBTY, Inc.*	121,100		3,141,334

Electronic Components - 1.84%
Intel Corporation (A)	150,900		3,927,172
Texas Instruments Incorporated	92,400		2,593,668
			6,520,840
Finance Companies - 5.41%
Fannie Mae	126,000		7,358,400
Freddie Mac (A)	181,300		11,826,199
			19,184,599
Food and Related - 1.17%
J.M. Smucker Company (The)	88,400		4,149,496

Furniture and Furnishings - 2.05%
Masco Corporation	229,200		7,279,392

Health Care - Drugs - 0.44%
Pfizer Inc.	56,100		1,547,238

Health Care - General - 2.93%
Da Vita Inc.*	97,700		4,443,396
Renal Care Group, Inc.*	75,500		3,480,550
Wyeth	55,200		2,456,400
			10,380,346
Hospital Supply and Management - 2.57%
PacifiCare Health Systems, Inc.*	127,600		9,117,020

Insurance - Property and Casualty - 5.87%
Allstate Corporation (The)	136,300		8,143,925
Assurant, Inc.	162,000		5,848,200
St. Paul Companies, Inc. (The)	172,101		6,803,153
			20,795,278
Leisure Time Industry - 1.97%
Brunswick Corporation	69,600		3,015,072
Cendant Corporation	176,800		3,955,016
			6,970,088
Motion Pictures - 1.26%
News Corporation Limited, Class A	276,400		4,472,152

Multiple Industry - 3.89%
General Electric Company	398,100		13,794,165

Petroleum - International - 12.79%
Burlington Resources Inc.	35,000		1,933,400
ChevronTexaco Corporation	218,600		12,224,112
ConocoPhillips	98,000		5,634,020
Devon Energy Corporation	133,500		6,765,780
Exxon Mobil Corporation	326,304		18,752,691
			45,310,003
Publishing - 0.62%
Gannett Co., Inc.	30,800		2,190,804

Railroad - 1.06%
Union Pacific Corporation (A)	58,200		3,771,360

Retail - General Merchandise - 2.05%
Dollar General Corporation	71,900		1,463,884
Family Dollar Stores, Inc.	222,500		5,807,250
			7,271,134
Security and Commodity Brokers - 6.88%
Marsh & McLennan Companies, Inc.	130,500		3,614,850
Merrill Lynch & Co., Inc.	31,400		1,727,314
Morgan (J.P.) Chase & Co.	299,088		10,563,788
Morgan Stanley	65,410		3,432,063
Prudential Financial, Inc. (A)	76,600		5,029,556
			24,367,571
Tobacco - 2.05%
Altria Group, Inc.	112,100		7,248,386

Utilities - Electric - 4.54%
Dominion Resources, Inc. (A)	60,200		4,418,078
Exelon Corporation	108,800		5,584,704
PPL Corporation	102,700		6,098,326
			16,101,108
Utilities - Gas and Pipeline - 1.05%
Enbridge Inc.	129,900		3,702,150

Utilities - Telephone - 5.44%
Iowa Telecommunications Services, Inc.	210,300		3,943,125
SBC Communications Inc.	130,100		3,089,875
Sprint Corporation	213,200		5,349,188
Verizon Communications Inc.	108,300		3,741,765
Vodafone Group Plc, ADR (A)	129,700		3,154,304
			19,278,257

TOTAL COMMON STOCKS - 98.07%		$	347,496,466

(Cost: $297,479,131)


PREFERRED STOCK - 0.22%


Finance Companies
Federal National Mortgage Association, 5.375% Convertible	8	$	774,836
(Cost: $800,000)


SHORT-TERM SECURITIES	Principal Amount in Thousands


Aluminum - 0.31%
Alcoa Incorporated,
3.4%, 7-1-05	$	1,085		1,085,000

Finance Companies - 0.85%
USAA Capital Corp.,
3.15%, 7-6-05		3,000		2,998,687

Multiple Industry - 0.56%
Detroit Edison Co.,
3.29%, 7-1-05		2,000		2,000,000

TOTAL SHORT-TERM SECURITIES - 1.72%			$	6,083,687

(Cost: $6,083,687)

TOTAL INVESTMENT SECURITIES - 100.01%			$	354,354,989

(Cost: $304,362,818)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.01%)				(36,798	)


NET ASSETS - 100.00%			$	354,318,191


Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Securities serve as cover for the following written call options outstanding at June 30, 2005. (See Note 5 to financial statements):
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received		Market Value

	Dominion Resources, Inc.	301	July/80	$	23,792	$	1,505
	du Pont (E.I.) de Nemours and Company	327	July/50		16,513		1,635
	Prudential Financial, Inc.	134	September/70		17,509		14,740
	Union Pacific Corporation	582	September/70		39,262		40,402

				$	97,076	$	58,282

	In addition to the above written call options, the following written put options were outstanding as of June 30, 2005. (See Note 5 to financial statements):
	Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received		Market Value

	Diageo plc, ADR	142	July/55	$	8,946	$	1,775
	Freddie Mac	137	July/50		7,946		343
	Intel Corporation	379	July/20		15,159		947
	Lexmark International, Inc., Class A	112	July/65		9,143		16,240
	Molson Coors Brewing Company, Class B	69	July/55		4,859		518
	Symantec Corporation	887	July/17.5		39,026		2,217
	Vodafone Group Plc, ADR	322	July/25		17,065		19,320

				$	102,144	$	41,360

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      VALUE PORTFOLIO
      June 30, 2005
      (In Thousands, Except for Per Share Amounts)                                                       (Unaudited)


ASSETS
Investment securities - at value (cost - $304,363) (Notes 1 and 3)	$	354,355
Cash		1
Cash denominated in foreign currencies (cost - $1)		1
Receivables:
Portfolio shares sold		687
Dividends and interest		510
Prepaid and other assets		5

Total assets		355,559

LIABILITIES
Payable for investment securities purchased		1,040
Outstanding written options - at value (premium received - $199) (Note 5)		100
Payable to Portfolio shareholders		66
Accrued accounting services fee (Note 2)		10
Accrued management fee (Note 2)		7
Accrued shareholder servicing (Note 2)		3
Accrued service fee (Note 2)		2
Other		13

Total liabilities		1,241

Total net assets	$	354,318

NET ASSETS
$0.001 par value capital stock:
Capital stock	$	56
Additional paid-in capital		300,048
Accumulated undistributed income:
Accumulated undistributed net investment income		2,709
Accumulated undistributed net realized gain on investment transactions		1,413
Net unrealized appreciation in value of securities		49,992
Net unrealized appreciation in value of written options		100

Net assets applicable to outstanding units of capital	$	354,318

Net asset value, redemption and offering price per share	$	6.3207

Capital shares outstanding		56,057
Capital shares authorized		110,000

See Notes to Financial Statements.

Statement of Operations
      VALUE PORTFOLIO
      For the Six Months Ended June 30, 2005
      (In Thousands)                                                                                                          (Unaudited)


INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $135)	$	4,400
Interest and amortization		76

Total income		4,476

Expenses (Note 2):
Investment management fee		1,199
Service fee		428
Accounting services fee		50
Audit fees		14
Custodian fees		9
Legal fees		5
Shareholder servicing		5
Other		42

Total expenses		1,752

Net investment income		2,724

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		7,343
Realized net loss on foreign currency transactions		(15	)
Realized net gain on written options		428
Realized net loss on purchased options		(156	)

Realized net gain on investments		7,600

Unrealized depreciation in value of securities during the period	(5,044		)
Unrealized appreciation in value of written options during the period		177

Unrealized depreciation in value of investments during the period	(4,867		)

Net gain on investments		2,733

Net increase in net assets resulting from operations	$	5,457

See Notes to Financial Statements.

Statement of Changes in Net Assets
      VALUE PORTFOLIO
      (In Thousands)                                                                                                          (Unaudited)


	For the six months ended 6-30-05			For the fiscal year ended 12-31-04

INCREASE IN NET ASSETS
Operations:
Net investment income	$	2,724		$	3,350
Realized net gain on investments		7,600			23,945
Unrealized appreciation (depreciation)		(4,867	)		15,208

Net increase in net assets resulting from operations		5,457			42,503

Dividends to shareholders from (Note 1E): ⁽¹⁾
Net investment income		(-	)		(3,356	)
Realized gains on investment transactions		(-	)		(-	)

		(-	)		(3,356	)

Capital share transactions ⁽²⁾		8,509			31,860

Total increase		13,966			71,007
NET ASSETS
Beginning of period		340,352			269,345

End of period	$	354,318		$	340,352

Undistributed net investment income	$	2,709		$	- -	*


(1)See "Financial Highlights" on page 225.

(2)Shares issued from sale of shares		3,774			8,918
Shares issued from reinvestment of dividend and/or capital gains distribution		- -			540
Shares redeemed		(2,414	)		(3,920	)

Increase in outstanding capital shares		1,360			5,538

Value issued from sale of shares	$	23,564		$	50,940
Value issued from reinvestment of dividend and/or capital gains distribution		- -			3,356
Value redeemed		(15,055	)		(22,436	)

Increase in outstanding capital	$	8,509		$	31,860

*Not shown due to rounding.

See Notes to Financial Statements.

Financial Highlights
      VALUE PORTFOLIO
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)


	For the six months ended				For the fiscal year ended December 31,									For the period from 5-1-01⁽¹⁾ through
	6-30-05				2004			2003			2002			12-31-01
Net asset value, beginning of period		$	6.2226		$	5.4790		$	4.4016		$	5.0815		$	5.0000

Income (loss) from investment operations:
Net investment income			0.0486			0.0619			0.0279			0.0348			0.0198
Net realized and unrealized gain (loss) on investments			0.0495			0.7437			1.0774		(0.6799		)		0.0815

Total from investment operations			0.0981			0.8056			1.1053		(0.6451		)		0.1013

Less distributions from:
Net investment income		(0.0000		)	(0.0620		)	(0.0279		)	(0.0348		)	(0.0198		)
Capital gains		(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)	(0.0000		)

Total distributions		(0.0000		)	(0.0620		)	(0.0279		)	(0.0348		)	(0.0198		)

Net asset value, end of period		$	6.3207		$	6.2226		$	5.4790		$	4.4016		$	5.0815

Total return			1.58	%		14.70	%		25.11	%		- -12.70	%		2.03	%
Net assets, end of period (in millions)			$354			$340			$269			$75			$44
Ratio of expenses to average net assets including voluntary expense waiver			1.02	%⁽²⁾		1.03	%		1.02	%		1.04	%		0.84	%⁽²⁾
Ratio of net investment income to average net assets including voluntary expense waiver			1.59	%⁽²⁾		1.13	%		1.06	%		0.92	%		1.39	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			- -	⁽³⁾		- -	⁽³⁾		- -	⁽³⁾		- -	⁽³⁾		1.07	%⁽²⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			- -	⁽³⁾		- -	⁽³⁾		- -	⁽³⁾		- -	⁽³⁾		1.16	%⁽²⁾
Portfolio turnover rate			15	%		78	%		97	%		96	%		11	%

(1)Commencement of operations.
(2)Annualized.
(3)Because the Portfolio's net assets exceeded $25 million for the entire period, there was no waiver of expenses. Therefore, no ratio is provided.

See Notes to Financial Statements.

Notes to Financial Statements

June 30, 2005 (Unaudited)

NOTE 1 - Significant Accounting Policies

W&R Target Funds, Inc. (the Fund) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. Capital stock is divided into the twenty classes that are designated the Asset Strategy Portfolio, the Balanced Portfolio, the Bond Portfolio, the Core Equity Portfolio, the Dividend Income Portfolio, the Global Natural Resources Portfolio, the Growth Portfolio, the High Income Portfolio, the International Growth Portfolio (formerly, International Portfolio), the International Value Portfolio (formerly, International II Portfolio), the Limited-Term Bond Portfolio, the Micro Cap Growth Portfolio, the Mid Cap Growth Portfolio, the Money Market Portfolio, the Mortgage Securities Portfolio, the Real Estate Securities Portfolio, the Science and Technology Portfolio, the Small Cap Growth Portfolio, the Small Cap Value Portfolio and the Value Portfolio. The assets belonging to each Portfolio are held separately by the custodian. The following is a summary of signific ant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A. Security valuation - Each stock and convertible bond is valued at the latest sale price thereof on each business day of the fiscal period as reported by the principal securities exchange on which the issue is traded or, if no sale is reported for a stock, the average of the latest bid and asked prices. Bonds, other than convertible bonds, are valued using a pricing system provided by a pricing service or dealer in bonds. Convertible bonds are valued using this pricing system only on days when there is no sale reported. Stocks which are traded over-the-counter are priced using the Nasdaq Stock Market, which provides information on bid and asked prices quoted by major dealers in such stocks. Gold bullion is valued at the last settlement price for current delivery as calculated by the Commodity Exchange, Inc. as of the close of that exchange. Restricted securities and securities for which quotations are not readily available or are deemed not to be reliable because of significant events or circumsta nces identified between the closing of their principal markets and the closing of the New York Stock Exchange are valued at fair value as determined in good faith under procedures established by and under the general supervision of the Fund's Board of Directors. Short-term debt securities are valued at amortized cost, which approximates market value.

B. Security transactions and related investment income - Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Premium and discount on the purchase of bonds are amortized for both financial and tax reporting purposes. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recorded as soon as the Fund is informed of the ex-dividend date. Interest income is recorded on the accrual basis. See Note 3 - Investment Securities Transactions.

C. Foreign currency translations - All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily. Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translations arise from changes in currency exchange rates. The Fund combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments.

D. Federal income taxes - It is the Fund's policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under the Internal Revenue Code. Accordingly, provision has not been made for Federal income taxes. See Note 4 - Federal Income Tax Matters.

E. Dividends and distributions - Dividends and distributions to shareholders are recorded by each Portfolio on the record date. Net investment income distributions and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as deferral of wash sales and post-October losses, foreign currency transactions, net operating losses and expiring capital loss carryovers.

F. Repurchase agreements - Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, remains at least equal to the value of the loan, including accrued interest thereon. The collateral for the repurchase agreement is held by the Fund's custodian bank.

G. Forward foreign currency exchange contracts - A forward foreign currency exchange contract (Forward Contract) is an obligation to purchase or sell a specific currency at a future date at a fixed price. Forward Contracts are "marked-to-market" daily at the applicable translation rates and the resulting unrealized gains or losses are reflected in the Fund's financial statements. Gains or losses are realized by the Fund at the time the forward contract is extinguished. Contracts may be extinguished either by entry into a closing transaction or by delivery of the currency. Risks may arise from the possibility that the other party will not complete the obligations of the Contract and from unanticipated movements in the value of the foreign currency relative to the United States dollar. The Fund uses Forward Contracts to attempt to reduce the overall risk of its investments.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

NOTE 2 - Investment Management And Payments To Affiliated Persons

Waddell & Reed Investment Management Company (WRIMCO), a wholly owned subsidiary of Waddell & Reed, Inc. (W&R), serves as the Fund's investment manager. The Fund pays a fee for investment management services. The fee is computed and paid daily based on the net asset value at the close of business. The fee is payable by each Portfolio at the following annual rates:


Portfolio	Net Asset Breakpoints	Annual Rate

Asset Strategy Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

Balanced Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

Bond Portfolio	Up to $500 Million	0.525%
	Over $500 Million up to $1 Billion	0.500%
	Over $1 Billion up to $1.5 Billion	0.450%
	Over $1.5 Billion	0.400%

Core Equity Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

Dividend Income Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

Global Natural Resources Portfolio	Up to $500 Million	1.000%
	Over $500 Million up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Growth Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

High Income Portfolio	Up to $500 Million	0.625%
	Over $500 Million up to $1 Billion	0.600%
	Over $1 Billion up to $1.5 Billion	0.550%
	Over $1.5 Billion	0.500%

International Growth Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

International Value Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Limited-Term Bond Portfolio	Up to $500 Million	0.500%
	Over $500 Million up to $1 Billion	0.450%
	Over $1 Billion up to $1.5 Billion	0.400%
	Over $1.5 Billion	0.350%

Micro Cap Growth Portfolio	Up to $1 Billion	0.950%
	Over $1 Billion up to $2 Billion	0.930%
	Over $2 Billion up to $3 Billion	0.900%
	Over $3 Billion	0.860%

Mid Cap Growth Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Money Market Portfolio	All Net Assets	0.400%

Mortgage Securities Portfolio	Up to $500 Million	0.500%
	Over $500 Million up to $1 Billion	0.450%
	Over $1 Billion up to $1.5 Billion	0.400%
	Over $1.5 Billion	0.350%

Real Estate Securities Portfolio	Up to $1 Billion	0.900%
	Over $1 Billion up to $2 Billion	0.870%
	Over $2 Billion up to $3 Billion	0.840%
	Over $3 Billion	0.800%

Science and Technology Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Small Cap Growth Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Small Cap Value Portfolio	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

Value Portfolio	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

WRIMCO has agreed to waive a Portfolio's investment management fee on any Portfolio that is not sub-advised on any day that the Portfolio's net assets are less than $25 million, subject to its right to change or modify this waiver. During the period ended June 30, 2005, WRIMCO voluntarily waived investment management fees as shown in the following table (in thousands):


Dividend Income Portfolio		$	55
Mid Cap Growth Portfolio			3

Advantus Capital Management, Inc. serves as subadvisor to Mortgage Securities Portfolio and Real Estate Securities Portfolio pursuant to an agreement with WRIMCO and receives a fee that is equal to, on an annual basis, 0.30% and 0.55% of the respective Portfolio's average net assets.

Makenzie Financial Corporation (MFC) serves as subadvisor to Global Natural Resources Portfolio pursuant to an agreement with WRIMCO and receives a fee that is shown in the following table:


Net Asset Breakpoints		Annual Rate

Up to $500 Million		0.500%
Over $500 Million and up to $1 Billion		0.425%
Over $1 Billion and up to $2 Billion		0.415%
Over $2 Billion and up to $3 Billion		0.400%
Over $3 Billion		0.380%

State Street Research & Management Company (SSRM) served as subadvisor to Small Cap Value Portfolio pursuant to an agreement with WRIMCO and received a fee that was equal to, on an annual basis, 0.50% of the Portfolio's average net assets. Effective January 31, 2005, the Portfolio's subadvisor changed from SSRM to BlackRock Financial Management, Inc. (BlackRock) as a result of BlackRock's acquisition of SSRM from MetLife, Inc. The shareholders approved BlackRock as the Portfolio's subadvisor at a shareholder meeting held on January 20, 2005. BlackRock receives a fee that is equal to, on an annual basis, 0.50% of the Portfolio's average net assets.

Templeton Investment Counsel, LLC serves as subadvisor to International Value Portfolio pursuant to an agreement with WRIMCO and receives a fee that is shown in the following table:


Net Asset Breakpoints		Annual Rate

On the first $100 Million		0.50%
On the next $100 Million		0.35%
On the next $250 Million		0.30%
On all assets exceeding $450 Million		0.25%

Wall Street Associates serves as subadvisor to Micro Cap Growth Portfolio pursuant to an agreement with WRIMCO and receives a fee that is equal to, on an annual basis, 0.50% of the Portfolio's average net assets.

The Fund has an Accounting Services Agreement with Waddell & Reed Services Company (WRSCO), a wholly owned subsidiary of W&R. Under the agreement, WRSCO acts as the agent in providing accounting services and assistance to the Fund and pricing daily the value of shares of each Portfolio. For these services, each Portfolio pays WRSCO a monthly fee of one-twelfth of the annual fee shown in the following table:



Average Net Asset Level (in millions)						Annual Fee Rate for Each Level

From	$	0	to	$	10	$	0
From	$	10	to	$	25	$	11,500
From	$	25	to	$	50	$	23,100
From	$	50	to	$	100	$	35,500
From	$	100	to	$	200	$	48,400
From	$	200	to	$	350	$	63,200
From	$	350	to	$	550	$	82,500
From	$	550	to	$	750	$	96,300
From	$	750	to	$	1,000	$	121,600
	$	1,000 and Over				$	148,500

Each Portfolio also pays monthly a fee at the annual rate of 0.01% or one basis point for the first $1 billion of net assets with no fee charged for net assets in excess of $1 billion.

The Fund has adopted a Service Plan pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, each Portfolio may pay a fee to W&R in an amount not to exceed 0.25% of the Portfolio's average annual net assets. The fee is to be paid to compensate W&R for amounts it expends in connection with the provision of personal services to Policyowners and/or maintenance of Policyowner accounts.

The Fund paid Directors' regular compensation of $129,545, which are included in other expenses. The Fund pays Frederick Vogel III additional compensation for his service as lead independent director. For the six months ended June 30, 2005, that amount was $3,635.

W&R is a subsidiary of Waddell & Reed Financial, Inc., a public holding company, and a direct subsidiary of Waddell & Reed Financial Services, Inc., a holding company.

The Fund has a Transfer Agency Agreement with WRSCO. For transfer agency services provided under the agreement, the Fund reimburses WRSCO for certain out-of-pocket costs.

NOTE 3 - Investment Securities Transactions

Investment securities transactions for the six months ended June 30, 2005 are summarized as follows:


	Asset Strategy Portfolio		Balanced Portfolio		Bond Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	113,696,372	$	109,167,659	$	17,687,001
Purchases of U.S. government obligations		3,612,699		3,182,000		18,715,631
Purchases of short-term securities		596,971,016		1,086,711,673		552,899,497
Purchases of options		47,917		- -		- -
Purchases of bullion		170,420		- -		- -
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		96,104,876		142,648,467		22,474,370
Proceeds from maturities and sales of U.S. government obligations		1,959,900		6,591,469		18,318,183
Proceeds from maturities and sales of short-term securities		593,311,166		1,073,013,749		547,940,000
Proceeds from bullion		- -		- -		- -
Proceeds from options		395,570		- -		- -


	Core Equity Portfolio		Dividend Income Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	208,821,259	$	13,918,326	$	4,997,970
Purchases of U.S. government obligations		- -		- -		- -
Purchases of short-term securities		1,281,799,798		238,178,395	25,867,000
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		238,698,585		3,055,925		236,747
Proceeds from maturities and sales of U.S. government obligations		- -		- -		- -
Proceeds from maturities and sales of short-term securities		1,292,152,580		238,922,824	24,607,000


	Growth Portfolio		High Income Portfolio		International Growth Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	342,793,809	$	44,008,648	$	66,642,580
Purchases of U.S. government obligations		- -		- -		- -
Purchases of short-term securities	1,199,260,831			849,159,681		715,702,255
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		397,140,869		42,413,170		73,696,443
Proceeds from maturities and sales of U.S. government obligations		- -		- -		- -
Proceeds from maturities and sales of short-term securities	1,208,205,743			841,311,000		711,200,044


	International Value Portfolio		Limited-Term Bond Portfolio		Micro Cap Growth Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	61,246,072	$	6,627,353	$	9,753,524
Purchases of U.S. government obligations		- -		9,005,767		- -
Purchases of short-term securities	1,042,025,677			263,541,056		111,410,472
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		47,581,811		5,142,607		11,935,559
Proceeds from maturities and sales of U.S. government obligations		- -		4,586,576		- -
Proceeds from maturities and sales of short-term securities	1,039,184,965			268,758,150		109,789,965


	Mid Cap Growth Portfolio		Mortgage Securities Portfolio		Real Estate Securities Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	2,866,232	$	4,491,830	$	14,304,272
Purchases of U.S. government obligations		- -		25,075,832		- -
Purchases of short-term securities		16,185,000		285,022,196		90,961,201
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		6,128		747,555		3,394,078
Proceeds from maturities and sales of U.S. government obligations		- -		22,791,796		- -
Proceeds from maturities and sales of short-term securities		15,734,000		284,079,000		91,146,000


	Science and Technology Portfolio		Small Cap Growth Portfolio		Small Cap Value Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	156,374,139	$	195,984,943	$	155,965,288
Purchases of U.S. government obligations		- -		- -		- -
Purchases of short-term securities		535,093,923	1,249,226,718			448,393,229
Purchases of options		36,314		- -		- -
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		156,563,460		197,510,690		139,700,410
Proceeds from maturities and sales of U.S. government obligations		- -		- -		- -
Proceeds from maturities and sales of short-term securities		543,578,277	1,268,343,917			444,011,911
Proceeds from options		- -		- -		- -


	Value Portfolio

Purchases of investment securities, excluding short-term and U.S. government obligations	$	64,503,715
Purchases of U.S. government obligations		- -
Purchases of short-term securities		432,972,745
Purchases of options		549,550
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government obligations		51,419,373
Proceeds from maturities and sales of U.S. government obligations		- -
Proceeds from maturities and sales of short-term securities		437,099,143
Proceeds from options		393,189

For Federal income tax purposes, cost of investments owned at June 30, 2005 and the related unrealized appreciation (depreciation) were as follows:


	Cost		Appreciation		Depreciation		Aggregate Appreciation (Depreciation)

Asset Strategy Portfolio	$	274,671,135	$	48,848,742	$	3,232,342	$	45,616,400
Balanced Portfolio		531,962,275		79,789,449		11,250,773		68,538,676
Bond Portfolio		211,090,702		6,128,367		1,650,157		4,478,210
Core Equity Portfolio		559,473,536		161,241,110		5,406,481		155,834,629
Dividend Income Portfolio		28,063,073		2,381,833		459,413		1,922,420
Global Natural Resources Portfolio		6,024,630		141,693		48,387		93,306
Growth Portfolio		977,451,968		233,269,123		12,191,024		221,078,099
High Income Portfolio		189,306,941		7,483,467		6,270,729		1,212,738
International Growth Portfolio		153,993,657		27,550,298		2,754,908		24,795,390
International Value Portfolio		344,222,338		79,760,735		7,702,377		72,058,358
Limited-Term Bond Portfolio		77,925,897		302,857		420,560		(117,703	)
Micro Cap Growth Portfolio		34,717,290		10,677,600		3,147,493		7,530,107
Mid Cap Growth Portfolio		3,312,026		198,724		21,897		176,827
Money Market Portfolio		52,538,239		- -		- -		- -
Mortgage Securities Portfolio		29,176,867		164,037		59,769		104,268
Real Estate Securities Portfolio		27,915,600		3,799,199		13,209		3,785,990
Science and Technology Portfolio		266,718,313		66,013,339		3,936,469		62,076,870
Small Cap Growth Portfolio		473,463,680		137,160,727		9,061,569		128,099,158
Small Cap Value Portfolio		143,078,988		12,631,321		2,631,657		9,999,664
Value Portfolio		304,712,542		56,604,489		6,962,042		49,642,447

NOTE 4 - Federal Income Tax Matters

For Federal income tax purposes, the Portfolios' distributed and undistributed earnings and profit for the fiscal year ended December 31, 2004 and the related Capital Loss Carryover and Post-October activity were as follows:


	Asset Strategy Portfolio		Balanced Portfolio		Bond Portfolio

Net ordinary income	$	5,248,181	$	8,835,010	$	9,288,731
Distributed ordinary income		4,561,928		8,830,472		9,286,361
Undistributed ordinary income		686,252		9,611		28,466

Realized long-term capital gains		1,009,698		- -		2,415,827
Distributed long-term capital gains		900,082		- -		2,436,379
Undistributed long-term capital gains		109,616		- -		25,525

Capital loss carryover		- -		- -		- -

Post-October losses deferred		- -		- -		1,057


	Core Equity Portfolio		Dividend Income Portfolio		Growth Portfolio

Net ordinary income	$	4,455,494	$	104,019	$	3,418,498
Distributed ordinary income		4,447,648		104,007		3,382,896
Undistributed ordinary income		27,800		12		35,601

Realized long-term capital gains		- -		- -		- -
Distributed long-term capital gains		- -		- -		- -
Undistributed long-term capital gains		- -		- -		-

Capital loss carryover		- -		12,421		- -

Post-October losses deferred		- -		- -		- -


	High Income Portfolio		International Growth Portfolio		International Value Portfolio

Net ordinary income	$	12,356,322	$	1,939,838	$	5,676,490
Distributed ordinary income		12,355,110		1,138,240		3,800,037
Undistributed ordinary income		34,545		1,057,584		2,334,819

Realized long-term capital gains		- -		- -		3,770,712
Distributed long-term capital gains		- -		- -		3,000,007
Undistributed long-term capital gains		- -		- -		770,705

Capital loss carryover		- -		- -		- -

Post-October losses deferred		- -		- -		- -


	Limited- Term Bond Portfolio		Micro Cap Growth Portfolio		Money Market Portfolio

Net ordinary income	$	2,158,287	$	- -	$	388,244
Distributed ordinary income		2,159,009		- -		387,755
Undistributed ordinary income		1,518		- -		2,913

Realized long-term capital gains		- -		- -		- -
Distributed long-term capital gains		- -		- -		- -
Undistributed long-term capital gains		- -		- -		-

Capital loss carryover		73,128		- -		- -

Post-October losses deferred		8,743		580,010		- -


	Mortgage Securities Portfolio		Real Estate Securities Portfolio		Science and Technology Portfolio

Net ordinary income	$	672,808	$	344,269	$	- -
Distributed ordinary income		672,808		331,195		- -
Undistributed ordinary income		- -		13,074		- -

Realized long-term capital gains		- -		72,557		- -
Distributed long-term capital gains		- -		- -		- -
Undistributed long-term capital gains		- -		72,557		-

Capital loss carryover		- -		- -		- -

Post-October losses deferred		- -		- -		- -


	Small Cap Growth Portfolio		Small Cap Value Portfolio		Value Portfolio

Net ordinary income	$	-	$	506,974	$	3,358,429
Distributed ordinary income		- -		- -		3,356,145
Undistributed ordinary income		- -		506,974		3,647

Realized long-term capital gains		- -		7,589,485		2,517,384
Distributed long-term capital gains		- -		6,400,012		- -
Undistributed long-term capital gains		- -		1,189,473		2,517,384

Capital loss carryover		- -		- -		- -

Post-October losses deferred		- -		- -		- -

Internal Revenue Code regulations permit each Portfolio to defer into its next fiscal year net capital losses or net long-term capital losses incurred between each November 1 and the end of its fiscal year (post-October losses).

Capital loss carryovers are available to offset future realized capital gain net income for Federal income tax purposes. The following shows the totals by year in which the capital loss carryovers will expire if not utilized:


	Asset Strategy Portfolio		Balanced Portfolio		Bond Portfolio		Core Equity Portfolio

December 31, 2008	$	- -	$	63,195,533	$	- -	$	112,139
December 31, 2009		- -		20,192,432		- -		47,771,158
December 31, 2010		- -		4,253,866		- -		120,325,174
December 31, 2011		- -		- -		- -		6,217,841

Total carryover	$	- -	$	87,641,831	$	- -	$	174,426,312


	Dividend Income Portfolio		Growth Portfolio		High Income Portfolio		International Growth Portfolio

December 31, 2008	$	- -	$	116,510,259	$	12,908,559	$	- -
December 31, 2009		- -		91,121,060		9,637,801		26,069,621
December 31, 2010		- -		88,955,941		13,911,720		33,377,007
December 31, 2011		- -		5,483,923		- -		10,822,424
December 31, 2012		12,421		- -		- -		- -

Total carryover	$	12,421	$	302,071,183	$	36,458,080	$	70,269,052


	International Value Portfolio		Limited-Term Bond Portfolio		Micro Cap Growth Portfolio		Mortgage Securities Portfolio

December 31, 2009	$	- -	$	- -	$	8,743,847	$	- -
December 31, 2010		- -		247,280		8,788,671		- -
December 31, 2012		- -		73,128		- -		- -

Total carryover	$	- -	$	320,408	$	17,532,518	$	- -


	Real Estate Securities Portfolio		Science and Technology Portfolio		Small Cap Growth Portfolio		Small Cap Value Portfolio

December 31, 2008	$	- -	$	- -	$	19,374,578	$	- -
December 31, 2009		- -		21,197,207		29,874,592		- -
December 31, 2010		- -		28,805,115		26,461,513		- -
December 31, 2011		- -		9,199,437		32,025,096		- -

Total carryover	$	- -	$	59,201,759	$	107,735,779	$	- -


	Value Portfolio

December 31, 2009	$	8,369,509

Advantus Asset Allocation Portfolio was merged into Target Balanced Portfolio as of September 22, 2003. At the time of the merger, Target Balanced Portfolio had capital loss carryovers available to offset future gains of the Advantus Asset Allocation Portfolio. These carryovers amount to $4,253,866 as of December 31, 2004 and will expire if not utilized by December 31, 2010.

Advantus Core Equity Portfolio was merged into Target Core Equity Portfolio as of September 22, 2003. At the time of the merger, Advantus Core Equity Portfolio had capital loss carryovers available to offset future gains of the Target Core Equity Portfolio. These carryovers are limited to $987,765 for the period ending December 31, 2005 and $987,765 for each period ending from December 31, 2006 through 2010 plus any unused limitations from prior years.

Advantus Growth Portfolio and Advantus Capital Appreciation Portfolio were merged into Target Growth Portfolio as of September 22, 2003. At the time of the merger, Advantus Growth Portfolio and Advantus Capital Appreciation Portfolio had capital loss carryovers available to offset future gains of the Target Growth Portfolio. These carryovers are limited to $21,734,628 and $17,485,994, respectively, for the period ending December 31, 2005 and $10,461,247 and $7,747,159, respectively, for each period ending from December 31, 2006 through 2009 and $2,114,422 and $7,747,159, respectively, for the period ending December 31, 2010 plus any unused limitations from prior years and the amount of certain built-in gains realized, if any.

Advantus Small Company Growth Portfolio was merged into Target Small Cap Growth Portfolio as of September 22, 2003. At the time of the merger, Advantus Small Company Growth Portfolio had capital loss carryovers available to offset future gains of the Target Small Cap Growth Portfolio. These carryovers are limited to $21,224,897 for the period ending December 31, 2005 and $7,647,902 for each period ending from December 31, 2006 through 2010.

Advantus Value Stock Portfolio was merged into Target Value Portfolio as of September 22, 2003. At the time of the merger, Target Value Portfolio had capital loss carryovers available to offset future gains of the Advantus Value Stock Portfolio. These carryovers amount to $8,369,509 as of December 31, 2004 and will expire if not utilized by December 31, 2009.

NOTE 5 - Options

Options purchased by a Portfolio are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.

When the Portfolio writes (sells) an option, an amount equal to the premium received by the Portfolio is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current market value of the option written. The current market value of an option is the last sales price on the principal exchange on which the option is traded or, in the absence of transactions, the mean between the bid and asked prices or a value supplied by a broker-dealer. When an option expires on its stipulated expiration date or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the call option was sold) and the liability related to such option is extinguished. When a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Portfolio has realized a gain or loss. For the Portfolio, when a written put o ption is exercised, the cost basis of the securities purchased by the Portfolio is reduced by the amount of the premium received.

For Asset Strategy Portfolio, transactions in call options written were as follows:


	Number of Contracts			Premiums Received

Outstanding at December 31, 2004		450		$	48,138
Options written		3,560			304,180
Options terminated in closing purchase transactions	(3,256		)	(280,512		)
Options exercised		(574	)		(58,306	)
Options expired		(180	)		(13,500	)

Outstanding at June 30, 2005		- -		$	- -

For Value Portfolio, transactions in call options written were as follows:


	Number of Contracts			Premiums Received

Outstanding at December 31, 2004		2,017		$	140,280
Options written		7,060			475,481
Options terminated in closing purchase transactions	(1,495		)		(70,504	)
Options exercised	(1,502		)	(118,380		)
Options expired	(4,736		)	(329,801		)

Outstanding at June 30, 2005		1,344		$	97,076

For Value Portfolio, transactions in put options written were as follows:


	Number of Contracts			Premiums Received

Outstanding at December 31, 2004		502		$	17,570
Options written		5,509			307,209
Options terminated in closing purchase transactions		(110	)		(4,290	)
Options exercised		(537	)		(60,059	)
Options expired	(3,316		)	(158,286		)

Outstanding at June 30, 2005		2,048		$	102,144

NOTE 6 - Futures

No price is paid upon entering into a futures contract. Instead, upon entering into a futures contract, the Portfolio is required to deposit, in a segregated account, an amount of cash or United States Treasury Bills equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Portfolio each day, dependent on the daily fluctuations in the value of the underlying debt security or index. These changes in the variation margins are recorded by the Portfolio as unrealized gains or losses. Upon the closing of the contracts, the cumulative net change in the variation margin is recorded as realized gain or loss. The Portfolio uses futures to attempt to reduce the overall risk of its investments.

NOTE 7 - Credit Default Swaps

A Fund may enter into credit default swaps to: 1) preserve a return or a spread on a particular investment or portion of its portfolio; 2) protect against any increase in the price of securities a Fund anticipates purchasing at a later date; or 3) attempt to enhance yield. Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event, such as payment default or bankruptcy. Under a credit default swap one party acts as a `guarantor' by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the credit event occurs. A Fund may enter into credit default swaps in which either it or its counterparty act as the guarantor.

The creditworthiness of firms with which a Fund enters into credit default swaps are monitored by WRIMCO. If a firm's creditworthiness declines, the value of the agreement would likely decline, potentially resulting in losses. If a default occurs by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreements related to the transaction.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses may be realized upon termination of the swap agreement. At June 30, 2005, Asset Strategy Portfolio owned the following swap agreements:


Contract Description	Expiration Date	Notional Amount


During the life of the contract pay Merrill Lynch International a fixed rate of 2.1% of the notional amount. Upon each credit event of one of the issues of the Dow Jones CDX Emerging Markets Series 3 receive par value of the proportional notional amount from Merrill Lynch International. (Dow Jones CDX Emerging Markets Series 3 is a tradable index of credit default swaps on debt composed of sovereign issuers (each an issuer) from the following regions: Latin America; Eastern Europe, the Middle East and Africa; Asia.)	6-20-10	$	2,900,000	$	(29,411	)

During the life of the contract pay Merrill Lynch International a fixed rate of 3.6% of the notional amount. Upon each credit event of one of the issues of the Dow Jones CDX North America High Yield Series 4 receive par value of the proportional notional amount from Merrill Lynch International. (Dow Jones CDX North America High Yield Series 4 is a tradable index of credit default swaps on non-investment grade debt of companies domiciled in North America.)	6-20-10		2,871,000		30,576

				$	1,165

NOTE 8 - Name Changes

On December 1, 2004, International Portfolio and International II Portfolio changed their names to International Growth Portfolio and International Value Portfolio, respectively.

NOTE 9 - Other Tax Information

Internal Revenue Code regulations permit each qualifying Portfolio to elect to pass through a foreign tax credit to shareholders with respect to foreign taxes paid by the Portfolio. At December 31, 2004, International Growth Portfolio and International Value Portfolio elected to pass through $311,458 and $1,128,730, respectively, of creditable foreign taxes to their shareholders.

Shareholder Meeting Results

On January 20, 2005, a special shareholder meeting (the Meeting) for W&R Target Small Cap Value Portfolio, a series of W&R Target Funds, Inc., was held at the offices of Waddell & Reed Financial, Inc., 6300 Lamar Avenue, Overland Park, Kansas, 66202. The Meeting was held for the following purpose (and with the following results):

Proposal 1: To approve a subadvisory agreement between Waddell & Reed Investment Management Company and BlackRock Financial Management, Inc. with respect to W&R Target Small Cap Value Portfolio.


For	Against	Abstain

6,829,230.012	110,582.412	351,853.979

Consideration of Investment Management Subadvisory Agreement for Small Cap Value Portfolio

In late 2004, MetLife, Inc. (MetLife), the parent company of State Street Research & Management Company (State Street), Small Cap Value Portfolio's then-current investment subadvisor, had entered into an agreement to sell SSRM Holding, Inc., and its subsidiary, State Street, to BlackRock, Inc. The sale was completed in January 2005, and resulted in the automatic termination of the investment subadvisory agreement with State Street for the Small Cap Value Portfolio. In preparation of this pending transaction and subsequent termination of the subadvisory agreement for Small Cap Value Portfolio, Waddell & Reed Investment Management Company (WRIMCO) proposed a new subadvisory agreement with BlackRock Financial Management, Inc. (BlackRock), an indirect wholly-owned subsidiary of BlackRock, Inc. At a meeting held on November 10, 2004, the Board of Directors, including the Directors who are not "interested persons" of W&R Target Funds, Inc. (Disinterested Directors), voted unanimously to appro ve an investment subadvisory agreement between WRIMCO, the investment advisor for Small Cap Value Portfolio (Portfolio), and BlackRock (Proposed Agreement) and to recommend that shareholders of the Portfolio vote to approve the Proposed Agreement.

In connection with that approval and recommendation, the Directors met with representatives of BlackRock who provided the Directors with extensive information on BlackRock and its plans on how it proposes to manage the Portfolio. As part of their deliberations, the Directors first considered the general reputation, financial resources and business activities of BlackRock and its parent organization. They further considered the scope and quality of the services that BlackRock proposes to provide the Portfolio, including the fee rate for providing those services. BlackRock advised the Directors that it does not offer lower fees than the fees proposed under the Proposed Agreement for any other small cap value client. After considering information provided to them by BlackRock on those issues, the Directors concluded that BlackRock and its parent organization (including BlackRock's parent after completion of the merger with State Street), had sufficient resources and expertise to capably manage the Portfolio. T he Directors also concluded that BlackRock's proposed fee was reasonable, particularly because the proposed fee is identical to the fee that the Portfolio currently pays State Street.

The Directors discussed with BlackRock how BlackRock would manage the Portfolio on a day-to-day basis. BlackRock provided extensive information to the Directors on its investment philosophy, selection process and investment process. BlackRock further described to the Directors the risk profile and portfolio characteristics of accounts currently under BlackRock's management that have substantially the same investment objectives and restrictions as the Portfolio. BlackRock also described what they believed would be the total amount of assets that BlackRock could capably manage in the small capitalization value asset class, which would include the Portfolio's assets as well as the assets in another fund for which it is proposed that BlackRock would serve as subadvisor and which is managed by Ivy Investment Management Company. BlackRock noted that they likely would recommend to the Directors that the Portfolio close to new investors once the aggregated assets in both of the funds proposed to be subadvised by Bla ckRock reached approximately $400 million. BlackRock noted that they believe that permitting assets in excess of that amount to be invested in the Portfolio could be harmful to existing shareholders. As of November 30, 2004, the Portfolio's assets were approximately $127 million. As of November 30, 2004, the aggregated assets of both funds proposed to be managed by BlackRock were approximately $221 million.

With respect to the nature and quality of the services to be provided, the Directors considered the performance of a small cap value equity composite comprised of all fully discretionary total return accounts managed by BlackRock, which generally invest in companies with market capitalization between the largest and smallest member of the Russell 2000 Index. The Directors considered that the composite outperformed the Russell 2000 Index for the last one- and two-year periods ended September 30, 2004 and since the inception date of the composite on January 1, 2002 through the period ended September 30, 2004.

In addition, the Directors considered information provided by BlackRock regarding its use of brokers or dealers in Portfolio transactions that would provide research and other services to BlackRock, and the benefits that would be derived by the Portfolio and by other clients of BlackRock from such services. The Directors considered the extent of the services to be provided by BlackRock, described in the Proposed Agreement, including that BlackRock would be responsible for formulating and implementing a continuous investment program for the Portfolio consistent with the Portfolio's investment objective and policies.

Although WRIMCO discussed in general with the Directors how economies of scale could be achieved as the Portfolio's assets grow, the Directors did not expressly consider whether economies of scale would be realized with respect to the Proposed Agreement because the subadvisory fee is at a fixed rate that WRIMCO is required to pay to BlackRock. The Board understood that, because the proposed subadvisory fee is based upon a fixed percentage of the Portfolio's average daily value of the net assets, the subadvisory fee will increase proportionately to the increase in Portfolio assets.

The Directors did not take into account the projected profits of BlackRock for managing the Portfolio, because the proposed relationship had not yet commenced and it would be difficult to project those profits. However, the Directors noted that, should shareholders approve the relationship, this issue would be closely monitored in the future. Likewise, the Directors did not consider comparisons of the proposed services with those of other contracts, except to the extent that the proposed arrangement with BlackRock would be virtually identical to the current relationship with State Street.

The Directors also considered the terms of the current advisory agreement between the Corporation and the WRIMCO, with respect to the Portfolio, including the services that WRIMCO provides and the rate of advisory fee payable to WRIMCO. They also considered that: (a) WRIMCO was responsible for the selection, subject to Board and shareholder approval, of any subadvisor to the Portfolio, as well as monitoring its performance; (b) WRIMCO would be responsible for BlackRock's compliance with the Portfolio's investment objective and policies and restrictions as well as compliance with the federal securities laws; and (c) WRIMCO was responsible for the overall success or failure of the Portfolio.

In addition, the Disinterested Directors received advice from independent legal counsel and met separately from the full Board with their counsel. Based on the Directors' deliberations and their evaluation of the information described above, the Board of Directors, including all of the Disinterested Directors, unanimously approved the Proposed Agreement and concluded that the fees under the Proposed Agreement are fair and reasonable in light of such services and such other matters as the Directors considered to be relevant in the exercise of their reasonable judgment and that approval of the Proposed Agreement is in the best interests of the Portfolio. In addition, the Directors noted that BlackRock's proposed fee is identical to the fee that the Portfolio currently pays State Street and is the same fee paid by a similar fund managed by Ivy Investment Management Company.

After carefully considering the information described above, the Board of Directors, including the Disinterested Directors, unanimously voted to approve the Proposed Agreement for the Portfolio and to recommend that the Portfolio's shareholders vote to approve the Proposed Agreement. The shareholders of the Portfolio voted in favor of the Proposed Agreement and it was executed as of January 31, 2005, in conjunction with the sale of State Street to BlackRock.

Proxy Voting Information

Proxy Voting Guidelines

A description of the policies and procedures W&R Target Funds, Inc. uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.888.WADDELL or (ii) on the SEC's website at www.sec.gov.

Proxy Voting Records

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 on Form N-PX is available through Waddell & Reed's website at www.waddell.com and on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule Information

A complete schedule of portfolio holdings for the first and third quarters of each fiscal year will be filed with the Securities and Exchange Commission (SEC) on the Fund's Form N-Q. This form may be obtained in the following ways:

On the SEC's website at www.sec.gov.
For review and copy at the SEC's Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
On Waddell & Reed's website at www.waddell.com.

THE W&R TARGET FUNDS FAMILY

Global/International Funds

International Growth Portfolio

International Value Portfolio

Domestic Equity Funds

Core Equity Portfolio

Dividend Income Portfolio

Growth Portfolio

Micro Cap Growth Portfolio

Small Cap Growth Portfolio

Small Cap Value Portfolio

Value Portfolio

Fixed Income Funds

Bond Portfolio

High Income Portfolio

Limited-Term Bond Portfolio

Mortgage Securities Portfolio

Money Market Funds

Money Market Portfolio

Specialty Funds

Science and Technology Portfolio

Real Estate Securities Portfolio

Asset Strategy Portfolio

Balanced Portfolio

FOR MORE INFORMATION:


Contact your financial advisor, or your local office as listed on your Account Statement, or contact:

United Investors Life		Securian Financial Services, Inc.
Variable Products Division	or	400 Robert Street North
P.O. Box 156		St. Paul, MN 55101-2098
Birmingham, AL 35201-0156		1.888.237.1838
205.325. 4300		or
or		Call 1.888.WADDELL
Nationwide Financial, Inc.
P.O. Box 182449
One Nationwide Plaza
Columbus, OH 43218-2449
1.888.867.5175

The underlying portfolios discussed in this report are only available as investment options in variable annuity and variable life insurance contracts issued by life insurance companies. They are not offered or made available directly to the general public.

This report is submitted for the general information of the shareholders of W&R Target Funds, Inc. It is not authorized for distribution to prospective investors in a Portfolio unless accompanied with or preceded by the W&R Target Funds, Inc. current prospectus as well as the variable product prospectus.

NUR1016SA (6-05)

ITEM 2. CODE OF ETHICS.

Required in annual report only.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Required in annual report only.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Nominating Committee of the Board of Directors of the Registrant will consider nominees recommended by shareholders of the Fund. Shareholders should direct the names of candidates they wish to be considered to the attention of the Fund's Nominating Committee, in care of the Fund's Secretary, at the address of the Fund listed on the front page of this Report. Such nominees will be considered with any other director nominees.

ITEM 11. CONTROLS AND PROCEDURES.

(a)	The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

(b)	There were no significant changes in the registrant's internal controls over financial reporting that occurred over the Registrant's last fiscal half-year that has affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(2)

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).

Attached hereto as Exhibit 99.CERT.

(b)	A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)).

Attached hereto as Exhibit 99.906CERT.


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

W&R Target Funds, Inc.
(Registrant)


By	/s/Kristen A. Richards
	Kristen A. Richards, Vice President and Secretary

Date September 7, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By	/s/Henry J. Herrmann
	Henry J. Herrmann, President and Principal Executive Officer

Date September 7, 2005

By	/s/Theodore W. Howard
	Theodore W. Howard, Treasurer and Principal Financial Officer

Date September 7, 2005


Date: September 7, 2005	/s/Henry J. Herrmann
	Henry J. Herrmann, President


CERTIFICATION

I, Theodore W. Howard, certify that:

1. I have reviewed this report on Form N-CSR of W&R Target Funds, Inc.;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30(a)-3(c) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 7, 2005	/s/Theodore W. Howard
	Theodore W. Howard, Treasurer



By	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer

Date September 7, 2005


By	/s/Theodore W. Howard
	Theodore W. Howard, Principal Financial Officer

Date September 7, 2005