N-Q 1 mainpart-tm.htm MAIN PART --NQ
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 

FORM N-Q
 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 

Investment Company Act file number 811-9789
 

Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.

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(Exact name of registrant as specified in charter)
 
 

6300 Lamar Avenue, Overland Park, Kansas 66202

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(Address of principal executive offices) (Zip code)
 
 

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

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(Name and address of agent for service)
 

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

Date of fiscal year end: June 30
 

Date of reporting period: March 31, 2005
 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss. 239.24 and 274.5 of this chapter) to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under that Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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. SCHEDULE OF INVESTMENTS.

The Investments of Advisors Tax-Managed Equity Fund

  
      March 31, 2005                
COMMON STOCKS    


Shares
      
Value
  
                 
Air Transportation - 1.01%                
Southwest Airlines Co.
   
46,550
   
$
662,872
 
                 
Aircraft - 2.40%                
Boeing Company (The)
   
13,000
     
759,980
 
United Technologies Corporation
   
8,000
     
813,280
 
           

1,573,260
 
Aluminum - 0.46%                
Alcoa Incorporated
   
10,000
     
303,900
 
                 
Apparel - 1.99%                
Coach, Inc.*
   
23,000
     
1,302,490
 
                 
Banks - 1.00%                
Citigroup Inc.
   
14,550
     
653,877
 
                 
Broadcasting - 1.27%                
Viacom Inc., Class B
   
17,000
     
592,110
 
XM Satellite Radio Holdings Inc., Class A*
   
7,500
     
236,850
 
           

828,960
 
Capital Equipment - 0.82%                
Deere & Company
   
8,000
     
537,040
 
                 
Communications Equipment - 1.78%                
Cisco Systems, Inc.*
   
65,000
     
1,164,475
 
                 
Computers - Micro - 4.03%                
Apple Computer, Inc.*
   
22,000
     
918,500
 
Dell Inc.*
   
44,650
     
1,715,676
 
           

2,634,176
 
Computers - Peripherals - 5.64%                
Lexmark International, Inc.*
   
9,000
     
719,730
 
Microsoft Corporation
   
75,000
     
1,812,375
 
Oracle Corporation*
   
35,000
     
436,625
 
SAP Aktiengesellschaft, ADR
   
18,000
     
721,440
 
           

3,690,170
 
Defense - 1.64%                
General Dynamics Corporation
   
10,000
     
1,070,500
 
                 
Electronic Components - 3.10%                
Analog Devices, Inc.
   
11,650
     
421,031
 
Intel Corporation
   
32,000
     
743,360
 
Texas Instruments Incorporated
   
33,950
     
865,386
 
           

2,029,777
 
Electronic Instruments - 1.54%                
Applied Materials, Inc.*
   
20,000
     
325,100
 
KLA-Tencor Corporation*
   
14,900
     
685,474
 
           

1,010,574
 
Finance Companies - 0.67%                
Fannie Mae
   
8,000
     
435,600
 
                 
Health Care - Drugs - 8.34%                
Allergan, Inc.
   
10,000
     
694,700
 
Amgen Inc.*
   
19,000
     
1,105,230
 
Andrx Corporation*
   
30,000
     
680,400
 
Genentech, Inc.*
   
5,000
     
283,050
 
Gilead Sciences, Inc.*
   
30,000
     
1,073,850
 
MedImmune, Inc.*
   
14,000
     
333,130
 
Schering-Plough Corporation
   
23,000
     
417,450
 
Teva Pharmaceutical Industries Limited, ADR
   
28,000
     
867,580
 
           

5,455,390
 
Health Care - General - 5.41%                
Boston Scientific Corporation*
   
14,000
     
410,060
 
Johnson & Johnson
   
15,000
     
1,007,400
 
Schein (Henry), Inc.*
   
12,000
     
429,360
 
St. Jude Medical, Inc.*
   
21,000
     
756,000
 
Zimmer Holdings, Inc.*
   
12,000
     
933,720
 
           

3,536,540
 
Hospital Supply and Management - 9.23%                
Aetna Inc.
   
25,000
     
1,873,750
 
Caremark Rx, Inc.*
   
16,000
     
636,480
 
HCA Inc.
   
14,000
     
749,980
 
PacifiCare Health Systems, Inc.*
   
10,000
     
569,200
 
Triad Hospitals, Inc.*
   
14,000
     
701,400
 
WellPoint, Inc.*
   
12,000
     
1,504,200
 
           

6,035,010
 
Hotels and Gaming - 0.89%                
Hilton Hotels Corporation
   
26,000
     
581,100
 
                 
Insurance - Property and Casualty - 1.09%                
Berkshire Hathaway Inc., Class B*
   
250
     
714,000
 
                 
Leisure Time Industry - 1.09%                
Royal Caribbean Cruises Ltd.
   
16,000
     
715,040
 
                 
Multiple Industry - 9.39%                
China Netcom Group Corporation (Hong Kong) Limited, ADR*
   
16,000
     
447,840
 
DreamWorks Animation SKG, Inc., Class A*
   
18,000
     
732,780
 
General Electric Company
   
55,000
     
1,983,300
 
Google Inc., Class A*
   
4,000
     
721,940
 
Huntsman Corporation*
   
35,000
     
816,200
 
Las Vegas Sands, Inc.*
   
15,000
     
675,000
 
Research In Motion Limited*
   
10,000
     
763,250
 
           

6,140,310
 
Petroleum - International - 7.83%                
Anadarko Petroleum Corporation
   
13,600
     
1,034,960
 
Apache Corporation
   
27,200
     
1,665,456
 
Burlington Resources Inc.
   
23,300
     
1,166,631
 
Exxon Mobil Corporation
   
21,000
     
1,251,600
 
           

5,118,647
 
Petroleum - Services - 5.09%                
Nabors Industries Ltd.*
   
14,550
     
860,487
 
Patterson-UTI Energy, Inc.
   
50,000
     
1,250,750
 
Schlumberger Limited
   
10,000
     
704,800
 
Transocean Inc.*
   
10,000
     
514,600
 
           

3,330,637
 
Railroad - 1.06%                
Union Pacific Corporation
   
10,000
     
697,000
 
                 
Restaurants - 2.19%                
Applebee's International, Inc.
   
26,000
     
715,910
 
P.F. Chang's China Bistro, Inc.*
   
12,000
     
716,580
 
           

1,432,490
 
Retail - Food Stores - 2.50%                
CVS Corporation
   
15,000
     
789,300
 
Walgreen Co.
   
19,000
     
843,980
 
           

1,633,280
 
Retail - General Merchandise - 3.96%                
Costco Wholesale Corporation
   
19,000
     
840,845
 
Family Dollar Stores, Inc.
   
13,000
     
394,680
 
Wal-Mart Stores, Inc.
   
27,000
     
1,352,970
 
           

2,588,495
 
Security and Commodity Brokers - 3.04%                
Goldman Sachs Group, Inc. (The)
   
9,000
     
989,910
 
Merrill Lynch & Co., Inc.
   
4,850
     
274,510
 
Morgan Stanley
   
12,600
     
721,350
 
           

1,985,770
 
Timesharing and Software - 3.76%                
eBay Inc.*
   
66,000
     
2,458,830
 
                 
Tobacco - 1.80%                
Altria Group, Inc.
   
18,000
     
1,177,020
 
                 
TOTAL COMMON STOCKS - 94.02%          
$
61,497,230
  
(Cost: $50,195,680)
               
     
         
SHORT-TERM SECURITIES  
Principle
Amount in
Thousands
        
                 
Forest and Paper Products - 3.06%                
Sonoco Products Co.,
                
      2.88%, 4-1-05  
 $
2,000
     
2,000,000
 
                 
Security and Commodity Brokers - 2.92%                
Greenwich Capital Holdings Inc. (Royal Bank of
      Scotland PLC (The)),
                
      2.86%, 4-1-05    
1,910
     
1,910,000
 
                 
TOTAL SHORT-TERM SECURITIES - 5.98%          
$
3,910,000
  
(Cost: $3,910,000)
               
                 
TOTAL INVESTMENT SECURITIES - 100.00%          
$
65,407,230
 
(Cost: $54,105,680)
               
                 
Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.

 

ITEM 2. 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 (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

ITEM 3. EXHIBITS.
  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.

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.

Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.
(Registrant)

By

 /s/Kristen A. Richards
 

Kristen A. Richards, Vice President and Secretary

 

Date May 31, 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 May 31, 2005

 

By

 /s/Theodore W. Howard
 

Theodore W. Howard, Treasurer and Principal Financial Officer

 

Date May 31, 2005