N-Q 1 dnq.htm EQUITRUST SERIES FUND, INC. FORM N-Q EquiTrust Series Fund, Inc. Form N-Q

United States

Securities and Exchange Commission

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number          811-2125                

EquiTrust Series Fund, Inc.                                                           

(Exact name of registrant as specified in charter)

5400 University Avenue, West Des Moines IA 50266-5997                      

(Address of principal executive offices) (Zip code)

Kristi Rojohn, 5400 University Avenue, West Des Moines IA 50266-5997

(Name and address of agent for service)

Registrant’s telephone number, including area code:  515/225-5400             

Date of fiscal year end:          July 31, 2008  

Date of reporting period:       October 31, 2008

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 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 the 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 the 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. § 3507.

Item 1. Schedules of Investments.

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

BLUE CHIP PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Shares
  Held  

 

             Value  

 

COMMON STOCKS (96.77%)

              

BUSINESS SERVICES (4.59%)

              

Microsoft Corp.

       58,078      $      1,296,882

Oracle Corp.

       32,792         599,766
               
              1,896,648

CHEMICALS AND ALLIED PRODUCTS (18.60%)

              

Abbott Laboratories

       15,633         862,160

Amgen Inc.

       11,272         675,080

Bristol-Myers Squibb Co.

       24,299         499,344

Colgate-Palmolive Co.

       4,380         274,889

Dow Chemical Co. (The)

       6,653         177,436

E. I. du Pont de Nemours and Co.

       9,953         318,496

Eli Lilly and Co.

       11,462         387,645

Johnson & Johnson

       27,191         1,667,896

Merck & Co., Inc.

       19,480         602,906

Pfizer Inc.

       26,585         470,820

Procter & Gamble Co. (The)

       27,221         1,756,843
               
              7,693,515

COMMUNICATIONS (4.59%)

              

AT&T Inc.

       24,336         651,475

CBS Corp.-Class B

       7,635         74,136

Comcast Corp.-Class A

       20,878         329,037

Verizon Communications Inc.

       23,164         687,276

Viacom Inc.-Class B

       7,635         154,380
               
              1,896,304

DEPOSITORY INSTITUTIONS (7.72%)

              

Bank of America Corp.

       28,262         683,093

Citigroup Inc.

       27,308         372,754

JPMorgan Chase & Co.

       28,955         1,194,394

Wachovia Corp.

       16,081         103,079

Wells Fargo & Co.

       24,700         841,035
               
              3,194,355

EATING AND DRINKING PLACES (3.81%)

              

McDonald’s Corp.

       27,182         1,574,653

ELECTRIC, GAS AND SANITARY SERVICES (3.11%)

              

Exelon Corp.

       15,218         825,424

Southern Co. (The)

       13,404         460,293
               
              1,285,717

ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (6.32%)

              

Cisco Systems, Inc.

       35,837         636,824

General Electric Co.

       51,694         1,008,550

Intel Corp.

       36,186         578,976

Motorola, Inc.

       22,925         123,107

Texas Instruments Inc.

       13,518         264,412
               
              2,611,869

FOOD AND KINDRED PRODUCTS (5.68%)

              

Anheuser-Busch Companies, Inc.

       7,073         438,738

Coca-Cola Co. (The)

       19,684         867,277

Kraft Foods Inc.

       16,974         494,622

PepsiCo, Inc.

       9,602         547,410
               
              2,348,047

FORESTRY (0.36%)

              

Weyerhaeuser Co.

       3,951         151,007

GENERAL MERCHANDISE STORES (4.31%)

              

Target Corp.

       7,360         295,283

Wal-Mart Stores, Inc.

       26,649         1,487,281
               
              1,782,564

INDUSTRIAL MACHINERY AND EQUIPMENT (9.25%)

              

3M Co.

       10,955         704,407

Applied Materials, Inc.

       15,140         195,457

Caterpillar Inc.

       17,684         674,998

Dell Inc.

       20,103         244,251

EMC Corp.

       23,960         282,249

Hewlett-Packard Co.

       22,743         870,602

International Business Machines Corp.

       9,177         853,186
               
              3,825,150

MOTION PICTURES (2.13%)

              

Time Warner Inc.

       28,927         291,873

Walt Disney Co. (The)

       22,797         590,442
               
              882,315

NON-DEPOSITORY CREDIT INSTITUTIONS (2.24%)

              

American Express Co.

       33,683         926,283

PETROLEUM AND COAL PRODUCTS (12.14%)

              

Chevron Corp.

       24,393         1,819,718

Exxon Mobil Corp.

       43,203         3,202,206
               
              5,021,924

PRIMARY METAL INDUSTRIES (0.53%)

              

Alcoa Inc.

       19,124         220,117

SECURITY AND COMMODITY BROKERS (0.35%)

              

Amerprise Financial, Inc.

       6,733         145,433

TOBACCO PRODUCTS (3.72%)

              

Altria Group, Inc.

       24,528         470,692

Philip Morris International Inc.

       24,528         1,066,232
               
              1,536,924

TRANSPORTATION EQUIPMENT (7.32%)

              

Boeing Co. (The)

       16,981         887,597

General Motors Corp.

       10,329         59,702

Honeywell International Inc.

       22,597         688,079

United Technologies Corp.

       25,310         1,391,038
               
              3,026,416
               

Total Common Stocks (Cost $32,282,879)

               40,019,241

 

          Principal
Amount

 

            

SHORT-TERM INVESTMENTS (3.17%)

              

UNITED STATES GOVERNMENT AGENCIES (2.78%)

              

Federal Home Loan Bank, due 11/13/08

    $      150,000         149,945

Federal Home Loan Bank, due 11/17/08

       250,000         249,883

Federal Home Loan Bank, due 11/24/08

       250,000         249,811

Federal Home Loan Mortgage Corp., due 12/01/08

       150,000         149,721

Federal National Mortgage Assoc., due 11/12/08

       350,000         349,877
               

Total United States Government Agencies (Cost $1,149,237)

               1,149,237

          Shares
  Held  

 

            

MONEY MARKET MUTUAL FUND (0.39%)

              

JP Morgan U.S. Treasury Plus Money Market Fund (Cost $160,714)

       160,714         160,714
               

Total Short-Term Investments (Cost $1,309,951)

               1,309,951
               

Total Investments (Cost $33,592,830) (99.94%)

               41,329,192

OTHER ASSETS LESS LIABILITIES (0.06%)

              

Cash, receivables, prepaid expense and other assets, less liabilities

               26,640
               

Total Net Assets (100.00%)

            $      41,355,832
               

Non-income producing securities.

              

UNREALIZED APPRECIATION (DEPRECIATION)

              

The net federal income tax unrealized appreciation (depreciation) and federal

tax cost of investments held by the portfolios as of the period end were as follows:

              

Unrealized Appreciation

    $      14,701,733        

Unrealized Depreciation

       (6,965,371)        
               

Net Unrealized Appreciation (Depreciation)

       7,736,362        

Cost for federal income tax purposes

    $      33,592,830        

VALUATION

The Portfolio values its investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers or by an independent pricing service. Pricing services will consider many factors such as yields, credit spreads, reported trades and dealer quotes when valuing securities. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Directors. Short-term investments are valued at market value, except that obligations maturing in 13 months or less are valued using the amortized cost method of valuation, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market,

such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

Valuation

Inputs

        Investment in
Securities

 

Level 1

    $     40,179,955

Level 2

      1,149,237

Level 3

      -    
      

Total

    $     41,329,192
      

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

HIGH GRADE BOND PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Principal
Amount

 

             Value  

 

CORPORATE BONDS (37.58%)

              

DEPOSITORY INSTITUTIONS (5.79%)

              

Comerica Bank, 5.20%, due 08/22/17

    $      300,000      $      189,933

Huntington National Bank, 5.50%, due 02/15/16

       300,000         213,213

PNC Preferred FD, 144A, 6.517%, due 12/31/49

       500,000         354,680

Washington Mutual Bank, FA, 5.65%, due 08/15/14

       250,000         1,575
               
              759,401

ELECTRIC, GAS AND SANITARY SERVICES (9.47%)

              

Oglethorpe Power Corp., 6.974%, due 06/30/11

       231,000         247,468

PacifiCorp, 6.90%, due 11/15/11

       500,000         497,485

South Carolina Electric & Gas Co., 6.50%, due 11/01/18

       500,000         496,920
               
              1,241,873

FOOD AND KINDRED PRODUCTS (1.49%)

              

Diageo Capital plc, 4.375%, due 05/03/10

       200,000         195,896

FOOD STORES (1.13%)

              

Ahold Finance U.S.A., LLC, 8.25%, due 07/15/10

       150,000         147,755

INSURANCE CARRIERS (2.76%)

              

Prudential Financial, Inc., 6.10%, due 06/15/17

       250,000         195,768

SunAmerica Inc., 8.125%, due 04/28/23

       300,000         165,720
               
              361,488

OIL AND GAS EXTRACTION (1.54%)

              

Burlington Resources Inc., 9.125%, due 10/01/21

       200,000         202,088

SECURITY AND COMMODITY BROKERS (5.69%)

              

Goldman Sachs Group, Inc. (The), 5.125%, due 01/15/15

       300,000         245,262

Morgan Stanley-Series MTNC, 5.125%, due 02/11/19

       700,000         501,165
               
              746,427

TOBACCO PRODUCTS (5.67%)

              

UST Inc., 7.25%, due 06/01/09

       750,000         744,315

TRANSPORTATION - BY AIR (3.63%)

              

Continental Airlines, Inc. Pass-Through Certificates 1991-1 Class A, 6.545%, due 08/02/20

       521,515         476,790

TRANSPORTATION EQUIPMENT (0.41%)

              

Ford Motor Co., 9.215%, due 09/15/21

       200,000         53,704
               

Total Corporate Bonds (Cost $6,159,926)

               4,929,737

COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (2.28%)

              

TIAA Seasoned Commercial Mortgage Trust 2007-C4 Class AJ, 6.09%, due 08/01/39

       500,000         299,668
               

Total Commercial Mortgage Pass-Through Certificates (Cost $494,366)

               299,668

MORTGAGE-BACKED SECURITIES (51.51%)

              

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (12.10%)

              

3023 Class TG, 5.50%, due 08/01/35

       128,514         122,303

3051 Class MY, 5.50%, due 10/01/25

       400,000         361,704

Pool # A53146, 5.50%, due 10/01/36

       269,055         262,620

Pool # A69436, 6.00%, due 12/01/37

       426,442         425,342

Pool # G02562, 6.00%, due 01/01/37

       415,354         414,926
               
              1,586,895

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (10.23%)

              

Pool # 257306, 5.50%, due 08/01/38

       987,595         964,979

Pool # 906224, 5.50%, due 01/01/37

       385,411         376,839
               
              1,341,818

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (29.18%)

              

2003-1 Class PE, 5.50%, due 07/01/32

       500,000         470,612

Pool # 1512, 7.50%, due 12/01/23

       24,510         25,864

Pool # 2631, 7.00%, due 08/01/28

       13,061         13,366

Pool # 2658, 6.50%, due 10/01/28

       34,867         35,376

Pool # 2698, 5.50%, due 01/01/29

       58,230         57,649

Pool # 2701, 6.50%, due 01/01/29

       40,007         40,562

Pool # 2796, 7.00%, due 08/01/29

       15,442         15,784

Pool # 3039, 6.50%, due 02/01/31

       4,540         4,599

Pool # 3188, 6.50%, due 01/01/32

       47,042         47,628

Pool # 3239, 6.50%, due 05/01/32

       34,044         34,467

Pool # 3261, 6.50%, due 07/01/32

       32,732         33,139

Pool # 3320, 5.50%, due 12/01/32

       345,355         340,157

Pool # 3333, 5.50%, due 01/01/33

       234,137         230,370

Pool # 3375, 5.50%, due 04/01/33

       70,682         69,545

Pool # 3390, 5.50%, due 05/01/33

       324,790         319,565

Pool # 3403, 5.50%, due 06/01/33

       371,523         365,546

Pool # 3458, 5.00%, due 10/01/33

       483,368         462,321

Pool # 3499, 5.00%, due 01/01/34

       247,215         236,189

Pool # 3556, 5.50%, due 05/01/34

       187,024         183,831

Pool # 3623, 5.00%, due 10/01/34

       612,800         585,469

Pool # 22630, 6.50%, due 08/01/28

       17,829         18,089

Pool # 643816, 6.00%, due 07/01/25

       235,763         237,130
               
              3,827,258
               

Total Mortgage-Backed Securities (Cost $6,899,343)

               6,755,971

SHORT-TERM INVESTMENTS (8.19%)

              

UNITED STATES GOVERNMENT AGENCIES (7.16%)

              

Federal Home Loan Bank, due 11/17/08

       500,000         499,766

Federal Home Loan Bank, due 11/21/08

       100,000         99,944

Federal Home Loan Mtg Corp., due 12/01/08

       340,000         339,395
               

Total United States Government Agencies (Cost $939,105)

               939,105
          Shares
Held

 

            

MONEY MARKET MUTUAL FUND (1.03%)

              

JPMorgan U.S. Treasury Plus Money Market Fund (Cost $134,665)

       134,665         134,665
               

Total Short-Term Investments (Cost $1,073,770)

               1,073,770
               

Total Investments (Cost $14,627,405) (99.56%)

               13,059,146

OTHER ASSETS LESS LIABILITIES (0.44%)

              

Cash, receivables, prepaid expense and other assets, less liabilities

               57,334
               

Total Net Assets (100.00%)

            $      13,116,480
               

Restricted Securities:

              

PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 10/31/08, the carrying

value of each unit was 70.936, representing $354,680 or 2.70% of total net assets.

UNREALIZED APPRECIATION (DEPRECIATION)

The net federal income tax unrealized appreciation (depreciation) and federal

tax cost of investments held by the portfolios as of the period end were as follows:

 

Unrealized Appreciation

    $      25,936          

Unrealized Depreciation

       (1,594,195 )        
                   

Net Unrealized Appreciation (Depreciation)

       (1,568,259 )        

Cost for federal income tax purposes

    $      14,627,405          

VALUATION

The Portfolio values its investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers or by an independent pricing service. Pricing services will consider many factors such as yields, credit spreads, reported trades and dealer quotes when valuing securities. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Directors. Short-term investments are valued at market value, except that obligations maturing in 13 months or less are valued using the amortized cost method of valuation, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

 

Valuation

Inputs

         Investment in
Securities

Level 1

       134,665

Level 2

    $      12,924,481

Level 3

       -    
       

Total

    $      13,059,146
       

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

MANAGED PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Shares
  Held  

 

             Value  

 

COMMON STOCKS (68.04%)

              

BUSINESS SERVICES (1.60%)

              

eBay Inc.

       4,000      $      61,080

Microsoft Corp.

       12,300         274,659

Oracle Corp.

       11,520         210,701
               
              546,440

CHEMICALS AND ALLIED PRODUCTS (13.37%)

              

Abbott Laboratories

       10,400         573,560

Amgen Inc.

       1,900         113,791

Colgate-Palmolive Co.

       3,635         228,133

Dow Chemical Co. (The)

       6,040         161,087

E. I. du Pont de Nemours and Co.

       12,405         396,960

Johnson & Johnson

       15,703         963,222

K-V Pharmaceutical Co.-Class A

       7,050         119,850

Mylan Inc.

       16,595         142,219

Novartis AG

       4,030         205,490

Pfizer Inc.

       41,922         742,439

Procter & Gamble Co. (The)

       5,905         381,109

Schering-Plough Corp.

       9,700         140,553

Teva Pharmaceutical Industries Ltd.

       4,892         209,769

Wyeth

       5,500         176,990
               
              4,555,172

COMMUNICATIONS (1.95%)

              

AT&T Inc.

       5,895         157,809

Comcast Corp.-Class A

       7,203         113,519

Embarq Corp.

       2,350         70,500

Sprint Nextel Corp.

       12,175         38,108

Verizon Communications Inc.

       9,615         285,277
               
              665,213

DEPOSITORY INSTITUTIONS (3.12%)

              

Bank of America Corp.

       8,047         194,496

Bank of New York Mellon Corp. (The)

       6,399         208,607

Citigroup Inc.

       9,013         123,027

National City Corp.

       4,115         11,110

New York Community Bancorp, Inc.

       19,030         298,010

U.S. Bancorp

       6,272         186,968

Wachovia Corp.

       6,234         39,960
               
              1,062,178

ELECTRIC, GAS AND SANITARY SERVICES (5.32%)

              

Atmos Energy Corp.

       12,783         310,243

Integrys Energy Group, Inc.

       6,758         321,681

Pepco Holdings, Inc.

       8,375         172,944

Pinnacle West Capital Corp.

       11,400         360,810

Tortoise Energy Capital Corp.

       24,845         422,365

Waste Management, Inc.

       7,200         224,856
               
              1,812,899

ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (4.53%)

              

Cisco Systems, Inc.

       16,200         287,874

General Electric Co.

       53,735         1,048,370

Helen of Troy Ltd.

       6,813         122,566

Intel Corp.

       5,300         84,800
               
              1,543,610

FABRICATED METAL PRODUCTS (0.51%)

              

Illinois Tool Works Inc.

       5,175         172,793

FOOD AND KINDRED PRODUCTS (3.60%)

              

Anheuser-Busch Companies, Inc.

       5,260         326,278

Coca-Cola Co. (The)

       5,440         239,686

Diageo plc

       2,800         174,132

Kraft Foods Inc.

       5,737         167,176

PepsiCo, Inc.

       5,615         320,111
               
              1,227,383

FORESTRY (0.90%)

              

Weyerhaeuser Co.

       8,040         307,289

GENERAL MERCHANDISE STORES (1.94%)

              

Target Corp.

       2,440         97,893

Wal-Mart Stores, Inc.

       10,115         564,518
               
              662,411

HOLDING AND OTHER INVESTMENT OFFICES (0.71%)

              

H&Q Life Sciences Investors

       9,769         91,340

iShares MSCI Japan Index

       16,570         148,964
               
              240,304

INDUSTRIAL MACHINERY AND EQUIPMENT (3.10%)

              

3M Co.

       9,580         615,994

EMC Corp.

       14,400         169,632

Hewlett-Packard Co.

       2,530         96,848

Ingersoll-Rand Co. Ltd.-Class A

       9,341         172,341
               
              1,054,815

INSTRUMENTS AND RELATED PRODUCTS (2.48%)

              

Becton, Dickinson and Co.

       3,137         217,708

Medtronic, Inc.

       4,800         193,584

Stryker Corp.

       1,795         95,961

Thermo Fisher Scientific Inc.

       5,152         209,171

Zimmer Holdings, Inc.

       2,740         127,218
               
              843,642

INSURANCE AGENTS, BROKERS AND SERVICE (0.62%)

              

Arthur J. Gallagher & Co.

       8,605         209,618

INSURANCE CARRIERS (3.20%)

              

Allstate Corp. (The)

       3,635         95,928

American International Group, Inc.

       3,710         7,086

EMC Insurance Group Inc.

       20,429         499,693

Lincoln National Corp.

       2,200         37,928

MetLife, Inc.

       5,600         186,032

Old Republic International Corp.

       13,400         123,414

Protective Life Corp.

       2,890         24,132

WellPoint, Inc.

       2,997         116,493
               
              1,090,706

METAL MINING (2.60%)

              

Barrick Gold Corp.

       29,624         673,057

Newmont Mining Corp.

       8,100         213,354
               
              886,411

MOTION PICTURES (0.36%)

              

News Corp.

       11,500         122,130

MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.53%)

              

United Parcel Service, Inc.-Class B

       3,405         179,716

NON-DEPOSITORY CREDIT INSTITUTIONS (0.08%)

              

SLM Corp.

       2,565         27,369

OIL AND GAS EXTRACTION (5.43%)

              

Anadarko Petroleum Corp.

       5,700         201,210

Apache Corp.

       3,900         321,087

Baker Hughes Inc.

       3,600         125,820

Devon Energy Corp.

       3,100         250,666

Occidental Petroleum Corp.

       11,030         612,606

Rowan Companies, Inc.

       9,000         163,260

Weatherford International Ltd.

       10,400         175,552
               
              1,850,201

PAPER AND ALLIED PRODUCTS (1.45%)

              

AbitibiBowater Inc.

       6,242         12,172

Kimberly-Clark Corp.

       7,875         482,659
               
              494,831

PERSONAL SERVICES (0.66%)

              

Cintas Corp.

       9,465         224,321

PETROLEUM AND COAL PRODUCTS (2.29%)

              

ConocoPhillips

       8,225         427,864

Exxon Mobil Corp.

       3,300         244,596

Valero Energy Corp.

       5,200         107,016
               
              779,476

PIPELINES, EXCEPT NATURAL GAS (1.91%)

              

Kinder Morgan Management, LLC

       13,026         650,649

PRIMARY METAL INDUSTRIES (0.33%)

              

Corning Inc.

       10,300         111,549

PRINTING AND PUBLISHING (0.29%)

              

R. R. Donnelley & Sons Co.

       6,065         100,497

RETAIL-DRUG AND PROPRIETARY STORES (0.56%)

              

Walgreen Co.

       7,500         190,950

SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.81%)

              

Quest Diagnostics Inc.

       5,900         276,120

TOBACCO PRODUCTS (0.52%)

              

Altria Group, Inc.

       2,850         54,691

Philip Morris International Inc.

       2,850         123,890
               
              178,581

TRANSPORTATION EQUIPMENT (2.69%)

              

Federal Signal Corp.

       16,200         137,862

Genuine Parts Co.

       5,300         208,555

Honeywell International Inc.

       8,065         245,579

ITT Corp.

       7,280         323,960
               
              915,956

WHOLESALE TRADE - NONDURABLE GOODS (0.58%)

              

SYSCO Corp.

       7,485         196,107
               

Total Common Stocks (Cost $27,557,371)

               23,179,337

PUBLICLY TRADED PARTNERSHIPS (1.70%)

              

PIPELINES, EXCEPT NATURAL GAS

              

Buckeye Partners, L.P.

       4,900         196,147

Enbridge Energy Partners, L.P.

       4,800         185,856

Magellan Midstream Partners, L.P.

       5,500         196,900
               

Total Publicly Traded Partnerships (Cost $658,662)

               578,903
          Principal
Amount

 

            

MORTGAGE-BACKED SECURITIES (26.81%)

              

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)

              

2003-1 Class PE, 5.50%, due 07/01/32

    $      1,250,000         1,176,530

2003-11 Class QC, 5.50%, due 02/01/33

       1,500,000         1,394,133

2003-71 Class AK, 5.00%, due 09/01/29

       400,000         399,545

2003-116 Class JC, 5.00%, due 05/01/30

       440,000         440,691

2004-22 Class BK, 3.47%, due 04/01/34

       150,204         148,804

2004-26 Class GC, 5.00%, due 06/01/31

       700,000         683,300

2004-76 Class VG, 5.00%, due 09/01/23

       300,000         304,185

2004-89 Class KC, 4.00%, due 10/01/34

       293,148         288,564

2004-105 Class PB, 5.00%, due 06/01/33

       1,128,800         1,078,705

2004-109 Class WE, 5.00%, due 05/01/33

       522,000         484,175

2005-44 Class KC, 5.00%, due 04/01/31

       500,000         495,562

2006-38 Class OG, 5.00%, due 06/01/36

       650,000         587,098

Pool # 2796, 7.00%, due 08/01/29

       34,744         35,515

Pool # 3040, 7.00%, due 02/01/31

       18,802         19,170

Pool # 3188, 6.50%, due 01/01/32

       47,042         47,628

Pool # 3239, 6.50%, due 05/01/32

       87,030         88,112

Pool # 3333, 5.50%, due 01/01/33

       204,870         201,574

Pool # 3403, 5.50%, due 06/01/33

       110,620         108,841

Pool # 3442, 5.00%, due 09/01/33

       485,974         464,813

Pool # 3459, 5.50%, due 10/01/33

       316,694         311,599

Pool # 672081, 6.00%, due 08/01/37

       374,764         375,249
               

Total Mortgage-Backed Securities (Cost $9,372,864)

               9,133,793

SHORT-TERM INVESTMENTS (3.30%)

              

UNITED STATES GOVERNMENT AGENCIES (2.86%)

              

Federal Home Loan Bank, due 11/06/08

       175,000         174,973

Federal Home Loan Bank, due 11/17/08

       100,000         99,954

Federal Home Loan Bank, due 11/24/08

       200,000         199,849

Federal National Mortgage Assoc., due 11/12/08

       500,000         499,824
               

Total United States Government Agencies (Cost $974,600)

               974,600
          Shares
  Held  

 

            

MONEY MARKET MUTUAL FUND (0.44%)

              

JP Morgan U.S. Treasury Plus Money Market Fund (Cost $149,842)

       149,842         149,842
               

Total Short-Term Investments (Cost $1,124,442)

               1,124,442
               

Total Investments (Cost $38,713,339) (99.85%)

               34,016,475

OTHER ASSETS LESS LIABILITIES (0.15%)

              

Cash, receivables, prepaid expense and other assets, less liabilities

               50,765
               

Total Net Assets (100.00%)

            $      34,067,240
               

Non-income producing securities.

              

UNREALIZED APPRECIATION (DEPRECIATION)

              

The net federal income tax unrealized appreciation (depreciation) and federal

tax cost of investments held by the portfolios as of the period end were as follows:

              

Unrealized Appreciation

    $      2,683,874        

Unrealized Depreciation

       (7,293,262)        
               

Net Unrealized Appreciation (Depreciation)

       (4,609,388)        

Cost for federal income tax purposes

    $      38,625,863        

VALUATION

The Portfolio values its investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers or by an independent pricing service. Pricing services will consider many factors such as yields, credit spreads, reported trades and dealer quotes when valuing securities. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Directors. Short-term investments are valued at market value, except that obligations maturing in 13 months or less are valued using the amortized cost method of valuation, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

 

Valuation

Inputs

        

Investment in

Securities

Level 1

    $      23,908,082

Level 2

       10,108,393

Level 3

       -    
       

Total

    $      34,016,475
       

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

MONEY MARKET PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Annualized
Yield on
Purchase
Date

 

           Principal
Amount

 

         Value

 

SHORT-TERM INVESTMENTS (98.90%)

                  

COMMERCIAL PAPER (2.56%)

                  

PETROLEUM AND COAL PRODUCTS

                  

Chevron Corp., due 11/20/08

       1.501  %    $      100,000    $      100,000
                   

Total Commercial Paper (Cost $100,000)

                   100,000

UNITED STATES GOVERNMENT AGENCIES (96.34%)

                  

Federal Home Loan Bank, due 11/03/08

       2.484         100,000       99,986

Federal Home Loan Bank, due 11/05/08

       2.457         100,000       99,973

Federal Home Loan Bank, due 11/07/08

       2.390         100,000       99,961

Federal Home Loan Bank, due 11/14/08

       2.096         100,000       99,925

Federal Home Loan Bank, due 11/17/08

       1.066         100,000       99,953

Federal Home Loan Bank, due 11/26/08

       1.218         100,000       99,917

Federal Home Loan Bank, due 12/02/08

       2.270         100,000       99,808

Federal Home Loan Bank, due 12/03/08

       2.249         100,000       99,803

Federal Home Loan Bank, due 12/12/08

       1.117         125,000       124,843

Federal Home Loan Bank, due 12/17/08

       1.524         100,000       99,808

Federal Home Loan Bank, due 01/05/09

       2.038         100,000       99,638

Federal Home Loan Bank, due 01/12/09

       1.118         100,000       99,780

Federal Home Loan Mortgage Corp., due 11/17/08

       2.096         100,000       99,908

Federal Home Loan Mortgage Corp., due 11/18/08

       2.344         90,000       89,902

Federal Home Loan Mortgage Corp., due 11/21/08

       2.148         100,000       99,882

Federal Home Loan Mortgage Corp., due 11/24/08

       2.138         90,000       89,879

Federal Home Loan Mortgage Corp., due 12/01/08

       2.445         80,000       79,840

Federal Home Loan Mortgage Corp., due 12/08/08

       2.139         200,000       199,567

Federal Home Loan Mortgage Corp., due 12/15/08

       2.703         100,000       99,675

Federal Home Loan Mortgage Corp., due 12/23/08

       1.219         100,000       99,827

Federal Home Loan Mortgage Corp., due 01/12/09

       2.140         100,000       99,580

Federal Home Loan Mortgage Corp., due 01/21/09

       2.242         100,000       99,505

Federal Home Loan Mortgage Corp., due 01/23/09

       2.294         100,000       99,481

Federal Home Loan Mortgage Corp., due 01/26/09

       1.794         100,000       99,579

Federal National Mortgage Assoc., due 11/04/08

       2.338         100,000       99,981

Federal National Mortgage Assoc., due 11/06/08

       2.044         100,000       99,972

Federal National Mortgage Assoc., due 11/12/08

       1.167         100,000       99,965

Federal National Mortgage Assoc., due 11/13/08

       1.015         100,000       99,967

Federal National Mortgage Assoc., due 11/19/08

       2.186         100,000       99,892

Federal National Mortgage Assoc., due 11/25/08

       2.138         90,000       89,874

Federal National Mortgage Assoc., due 12/05/08

       1.015         100,000       99,906

Federal National Mortgage Assoc., due 12/11/08

       1.117         100,000       99,878

Federal National Mortgage Assoc., due 12/22/08

       1.220         100,000       99,830

Federal National Mortgage Assoc., due 12/29/08

       1.526         100,000       99,758

Federal National Mortgage Assoc., due 01/07/09

       2.037         100,000       99,628

Federal National Mortgage Assoc., due 01/20/09

       2.075         200,000       199,094
                   

Total United States Government Agencies (Cost $3,767,765)

                   3,767,765
                   

Total Short Term Investments (Cost $3,867,765)

                   3,867,765

OTHER ASSETS LESS LIABILITIES (1.10%)

                  

Cash, receivables, prepaid insurance and other assets, less liabilities

                   43,111
                   

Total Net Assets (100.00%)

                $      3,910,876
                   

VALUATION

The Money Market Portfolio values investments at amortized cost, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

 

Valuation

Inputs

        

Investment in

Securities

Level 1

    $      -    

Level 2

       3,910,876

Level 3

       -    
       

Total

    $        3,910,876
       

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

STRATEGIC YIELD PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Shares
  Held  

 

             Value  

 

PREFERRED STOCKS (1.35%)

              

DEPOSITORY INSTITUTIONS

              

Sovereign Capital Trust V, 7.75% (Cost $200,000)

       8,000      $      134,000
          Principal
Amount

 

            

CORPORATE BONDS (84.46%)

              

APPAREL AND ACCESSORY STORES (5.25%)

              

Woolworth (FW) Corp., 8.50%, due 01/15/22

    $      600,000         519,000

CHEMICALS AND ALLIED PRODUCTS (3.29%)

              

Chemtura Corp., 6.875%, due 06/01/16

       300,000         190,719

Nova Chemicals, Ltd., 7.875%, due 09/15/25

       200,000         135,000
               
              325,719

DEPOSITORY INSTITUTIONS (3.59%)

              

PNC Preferred FD, 144A, 6.517%, due 12/31/49

       500,000         354,680

ELECTRIC, GAS AND SANITARY SERVICES (19.65%)

              

Avista Corp., 5.95%, due 06/01/18

       300,000         286,596

Bruce Mansfield Unit 1, 6.85%, due 06/01/34

       500,000         500,310

Entergy Corp., 6.18%, due 03/01/35

       300,000         199,362

ESI Tractebel Acquisition Corp., 7.99%, due 12/30/11

       292,000         270,100

Sabine Pass LNG, L.P., 7.50%, due 11/30/16

       400,000         280,000

South Carolina Electric & Gas Co., 6.50%, due 11/01/18

       200,000         198,768

Waterford 3 Nuclear Power Plant, 8.09%, due 01/02/17

       207,201         208,458
               
              1,943,594

FOOD STORES (2.62%)

              

Safeway Inc., 7.45%, due 09/15/27

       300,000         259,185

FURNITURE AND FIXTURES (2.09%)

              

Steelcase Inc., 6.50%, due 08/15/11

       200,000         206,210

HOLDING AND OTHER INVESTMENT OFFICES (15.65%)

              

First Industrial, L.P., 7.60%, due 07/15/28

       300,000         263,121

Hospitality Properties Trust, 6.75%, due 02/15/13

       225,000         200,043

HRPT Properties Trust, 6.25%, due 08/15/16

       425,000         349,363

iStar Financial Inc.-Series B, 5.70%, due 03/01/14

       421,000         177,738

Realty Income Corp., 6.75%, due 08/15/19

       500,000         380,110

Rouse Company LP (The), 5.375%, due 11/26/13

       500,000         177,520
               
              1,547,895

INSURANCE CARRIERS (2.60%)

              

PXRE Capital Trust, 8.85%, due 02/01/27

       350,000         257,275

MOTION PICTURES (1.82%)

              

Time Warner Inc., 8.375%, due 03/15/23

       200,000         179,644

PAPER AND ALLIED PRODUCTS (10.42%)

              

AbitiBowater Inc., 9.375%, due 12/15/21

       400,000         106,000

Cascades Inc., 7.25%, due 02/15/13

       500,000         282,500

Potlatch Corp., 9.125%, due 12/01/09

       600,000         641,898
               
              1,030,398

PIPELINES, EXCEPT NATURAL GAS (3.30%)

              

NuStar Logistics, L.P., 7.65%, due 04/15/18

       400,000         326,748

TRANSPORTATION - BY AIR (2.58%)

              

Continental Airlines, Inc. Pass-Through Certificates 1997-1 Class 1A, 7.461%, due 10/01/16

       315,771         254,849

TRANSPORTATION SERVICES (2.43%)

              

Preston Corp., 7.00%, due 05/01/11

       247,000         240,291

WATER TRANSPORTATION (9.17%)

              

Overseas Shipholding Group, Inc., 8.75%, due 12/01/13

       400,000         359,624

Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21

       500,000         547,735
               
              907,359
               

Total Corporate Bonds (Cost $10,564,021)

               8,352,847

MORTGAGE-BACKED SECURITIES (4.60%)

              

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (12.28%)

              

3023 Class TG, 5.50%, due 08/01/35

       192,771         183,455

3051 Class MY, 5.50%, due 10/01/25

       300,000         271,278
               

Total Mortgage-Backed Securities (Cost $485,473)

               454,733

SHORT-TERM INVESTMENTS (7.92%)

              

UNITED STATES GOVERNMENT AGENCIES (7.32%)

              

Federal Home Loan Bank, due 11/13/08

       200,000         199,927

Federal Home Loan Bank, due 11/17/08

       200,000         199,906

Federal Home Loan Bank, due 12/03/08

       325,000         324,392
               

Total United States Government Agencies (Cost $724,225)

               724,225
          Shares
Held

 

            

MONEY MARKET MUTUAL FUND (0.60%)

              

JPMorgan U.S. Treasury Plus Money Market Fund (Cost $58,684)

       58,684         58,684
               

Total Short-Term Investments (Cost $782,909)

               782,909
               

Total Investments (Cost $12,032,403) (98.33%)

               9,724,489

OTHER ASSETS LESS LIABILITIES (1.67%)

              

Cash, receivables, prepaid expense and other assets, less liabilities

               165,389
               

Total Net Assets (100.00%)

            $      9,889,878
               

Restricted securities:

PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 10/31/08, the carrying value of each unit was 70.936, representing $354,680 or 3.58% of total net assets.

Windsor Petroleum Transportation was purchased at 80.500 on 08/26/99. As of 10/31/08, the carrying value of each unit was 109.547, representing $547,735 or 5.54% of total net assets.

As of 10/31/08, the carrying value of all restricted securities was $902,415 or 9.12% of total net assets.

UNREALIZED APPRECIATION (DEPRECIATION)

The net federal income tax unrealized appreciation (depreciation) and federal

tax cost of investments held by the portfolios as of the period end were as follows:

 

Unrealized Appreciation

    $      141,091        

Unrealized Depreciation

       (2,449,005)        
                   

Net Unrealized Appreciation (Depreciation)

       (2,307,914)        

Cost for federal income tax purposes

    $      12,032,403        

VALUATION

The Portfolio values its investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers or by an independent pricing service. Pricing services will consider many factors such as yields, credit spreads, reported trades and dealer quotes when valuing securities. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Directors. Short-term investments are valued at market value, except that obligations maturing in 13 months or less are valued using the amortized cost method of valuation, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

 

Valuation

Inputs

         Investment in
Securities

Level 1

    $      58,684

Level 2

       9,665,805

Level 3

       -  
       

Total

    $      9,724,489
       

EQUITRUST SERIES FUND, INC.

SCHEDULE OF INVESTMENTS

VALUE GROWTH PORTFOLIO

OCTOBER 31, 2008

(Unaudited)

 

          Shares
Held

 

           Value

 

COMMON STOCKS (96.89%)

              

BUSINESS SERVICES (6.29%)

              

Adobe Systems Inc.

       10,900      $      290,376

Automatic Data Processing, Inc.

       7,600         265,620

eBay Inc.

       13,555         206,985

Microsoft Corp.

       53,553         1,195,839

Oracle Corp.

       45,090         824,696

Symantec Corp.

       35,583         447,634
               
              3,231,150

CHEMICALS AND ALLIED PRODUCTS (17.52%)

              

Abbott Laboratories

       12,450         686,618

Amgen Inc.

       7,590         454,565

Biogen Idec Inc.

       3,200         136,160

Colgate-Palmolive Co.

       6,375         400,095

Dow Chemical Co. (The)

       4,890         130,416

E. I. du Pont de Nemours and Co.

       17,765         568,480

Johnson & Johnson

       27,539         1,689,242

K-V Pharmaceutical Co.-Class A

       15,150         257,550

Mylan Inc.

       27,870         238,846

Novartis AG

       6,970         355,400

Pfizer Inc.

       75,674         1,340,187

Procter & Gamble Co. (The)

       17,650         1,139,131

Schering-Plough Corp.

       19,940         288,931

Teva Pharmaceutical Industries Ltd.

       23,334         1,000,562

Wyeth

       9,830         316,329
               
              9,002,512

COMMUNICATIONS (3.14%)

              

AT&T Inc.

       20,105         538,211

Comcast Corp.-Class A

       25,237         397,735

Embarq Corp.

       3,800         114,000

Sprint Nextel Corp.

       19,593         61,326

Verizon Communications Inc.

       16,870         500,533
               
              1,611,805

DEPOSITORY INSTITUTIONS (4.65%)

              

Bank of America Corp.

       18,272         441,634

Bank of New York Mellon Corp. (The)

       21,602         704,225

Citigroup Inc.

       25,389         346,560

National City Corp.

       10,030         27,081

New York Community Bancorp, Inc.

       29,770         466,198

U.S. Bancorp

       10,922         325,585

Wachovia Corp.

       11,922         76,420
               
              2,387,703

EATING AND DRINKING PLACES (0.25%)

              

Chipotle Mexican Grill, Inc.

       2,500         126,875

ELECTRIC, GAS AND SANITARY SERVICES (3.91%)

              

Atmos Energy Corp.

       15,103         366,550

CMS Energy Corp.

       31,400         321,850

Integrys Energy Group, Inc.

       11,392         542,259

Pepco Holdings, Inc.

       13,530         279,395

Pinnacle West Capital Corp.

       9,900         313,335

Waste Management, Inc.

       6,000         187,380
               
              2,010,769

ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (7.21%)

              

Cisco Systems, Inc.

       50,200         892,054

Emerson Electric Co.

       5,800         189,834

General Electric Co.

       92,025         1,795,408

Helen of Troy Ltd.

       12,088         217,463

Intel Corp.

       25,100         401,600

QUALCOMM Inc.

       5,400         206,604
               
              3,702,963

FABRICATED METAL PRODUCTS (0.87%)

              

Illinois Tool Works Inc.

       13,310         444,421

FOOD AND KINDRED PRODUCTS (4.71%)

              

Anheuser-Busch Companies, Inc.

       8,955         555,479

Coca-Cola Co. (The)

       13,110         577,627

Coca-Cola FEMSA, S.A.B. de C.V.

       4,200         133,728

Dr Pepper Snapple Group, Inc.

       14,100         322,890

Kraft Foods Inc.

       9,600         279,744

PepsiCo, Inc.

       9,635         549,291
               
              2,418,759

FOOD STORES (0.75%)

              

Kroger Co. (The)

       13,998         384,385

FORESTRY (0.49%)

              

Weyerhaeuser Co.

       6,520         249,194

GENERAL MERCHANDISE STORES (3.14%)

              

Target Corp.

       16,110         646,333

Wal-Mart Stores, Inc.

       17,335         967,466
               
              1,613,799

HOLDING AND OTHER INVESTMENT OFFICES (1.39%)

              

Adams Express Co. (The)

       31,680         284,170

H&Q Life Sciences Investors

       45,986         429,969
               
              714,139

INDUSTRIAL MACHINERY AND EQUIPMENT (5.82%)

              

3M Co.

       16,485         1,059,986

Apple Inc.

       3,900         419,601

EMC Corp.

       67,200         791,616

Hewlett-Packard Co.

       5,870         224,704

Ingersoll-Rand Co. Ltd.-Class A

       15,875         292,894

Sigma Designs, Inc.

       18,300         202,947
               
              2,991,748

INSTRUMENTS AND RELATED PRODUCTS (6.75%)

              

Agilent Technologies, Inc.

       12,000         266,280

Becton, Dickinson and Co.

       13,246         919,272

Danaher Corp.

       2,900         171,796

Medtronic, Inc.

       16,660         671,898

Stryker Corp.

       5,770         308,464

Thermo Fisher Scientific Inc.

       21,044         854,386

Zimmer Holdings, Inc.

       5,980         277,651
               
              3,469,747

INSURANCE AGENTS, BROKERS AND SERVICE (0.80%)

              

Arthur J. Gallagher & Co.

       14,850         361,746

Hartford Financial Services Group, Inc. (The)

       4,500         46,440
               
              408,186

INSURANCE CARRIERS (2.80%)

              

Allstate Corp. (The)

       6,225         164,278

American Equity Investment Life Holding Co.

       34,900         157,748

American International Group, Inc.

       13,040         24,906

EMC Insurance Group Inc.

       15,791         386,248

Lincoln National Corp.

       3,605         62,150

MBIA Inc.

       6,644         65,311

MetLife, Inc.

       10,170         337,847

Protective Life Corp.

       4,740         39,579

WellPoint, Inc.

       5,108         198,548
               
              1,436,615

METAL MINING (2.12%)

              

Barrick Gold Corp.

       31,792         722,314

Newmont Mining Corp.

       14,000         368,760
               
              1,091,074

MOTION PICTURES (1.13%)

              

News Corp.-Class A

       22,810         242,698

Time Warner Inc.

       33,590         338,923
               
              581,621

MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.72%)

              

United Parcel Service, Inc.-Class B

       7,005         369,724

NON-DEPOSITORY CREDIT INSTITUTIONS (0.09%)

              

SLM Corp.

       4,440         47,375

OIL AND GAS EXTRACTION (7.63%)

              

Anadarko Petroleum Corp.

       10,200         360,060

Apache Corp.

       7,100         584,543

Baker Hughes Inc.

       6,300         220,185

Devon Energy Corp.

       5,400         436,644

Exterran Holdings, Inc.

       5,600         125,496

Helmerich & Payne, Inc.

       15,200         521,512

Noble Corp.

       11,800         380,078

Occidental Petroleum Corp.

       9,830         545,958

Rowan Companies, Inc.

       11,200         203,168

Transocean Inc.

       3,000         246,990

Weatherford International Ltd.

       17,600         297,088
               
              3,921,722

PAPER AND ALLIED PRODUCTS (1.96%)

              

AbitibiBowater Inc.

       74,278         144,842

Kimberly-Clark Corp.

       14,025         859,592
               
              1,004,434

PERSONAL SERVICES (0.75%)

              

Cintas Corp.

       16,150         382,755

PETROLEUM AND COAL PRODUCTS (4.59%)

              

Chevron Corp.

       15,500         1,156,300

ConocoPhillips

       12,228         636,101

Exxon Mobil Corp.

       5,600         415,072

Valero Energy Corp.

       7,200         148,176
               
              2,355,649

PRIMARY METAL INDUSTRIES (0.35%)

              

Corning Inc.

       16,650         180,320

PRINTING AND PUBLISHING (0.35%)

              

R. R. Donnelley & Sons Co.

       10,960         181,607

RAILROAD TRANSPORTATION (0.48%)

              

Union Pacific Corp.

       3,720         248,384

RETAIL-DRUG AND PROPRIETARY STORES (0.66%)

              

Walgreen Co.

       13,400         341,164

RETAIL-FURNISHINGS AND HOME FURNITURE STORES (0.42%)

              

Bed Bath & Beyond Inc.

       8,390         216,210

SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.75%)

              

Quest Diagnostics Inc.

       8,200         383,760

TOBACCO PRODUCTS (0.78%)

              

Altria Group, Inc.

       6,395         122,720

Philip Morris International Inc.

       6,395         277,991
               
              400,711

TRANSPORTATION EQUIPMENT (2.76%)

              

Federal Signal Corp.

       17,200         146,372

Honeywell International Inc.

       20,860         635,187

ITT Corp.

       14,340         638,130
               
              1,419,689

WHOLESALE TRADE - NONDURABLE GOODS (0.86%)

              

SUPERVALU Inc.

       6,800         96,832

SYSCO Corp.

       13,235         346,757
               
              443,589
               

Total Common Stocks (Cost $64,576,557)

               49,774,558

SHORT-TERM INVESTMENTS (3.10%)

              

MONEY MARKET MUTUAL FUND (0.13%)

              

JPMorgan U.S. Treasury Plus Money Market Fund (Cost $66,137)

       66,137         66,137
          Principal
Amount

 

            

UNITED STATES GOVERNMENT AGENCIES (2.97%)

              

Federal Home Loan Bank, due 11/17/08

    $      400,000         399,818

Federal Home Loan Bank, due 11/25/08

       175,000         174,860

Federal Home Loan Bank, due 12/03/08

       300,000         299,439

Federal Home Loan Bank, due 12/08/08

       250,000         249,684

Federal National Mortgage Assoc., due 11/12/08

       400,000         399,859
               

Total United States Government Agencies (Cost $1,523,660)

               1,523,660
               

Total Short-Term Investments (Cost $1,589,797)

               1,589,797
               

Total Investments (Cost $66,166,354) (99.99%)

               51,364,355

OTHER ASSETS LESS LIABILITIES (0.01%)

              

Cash, receivables, prepaid expense and other assets, less liabilities

               5,844
               

Total Net Assets (100.00%)

            $      51,370,199
               

Non-income producing securities.

              

UNREALIZED APPRECIATION (DEPRECIATION)

              

The net federal income tax unrealized appreciation (depreciation) and federal

tax cost of investments held by the portfolios as of the period end were as follows:

              

Unrealized Appreciation

    $      2,299,339        

Unrealized Depreciation

       (17,475,942)        
               

Net Unrealized Appreciation (Depreciation)

       (15,176,603)        

Cost for federal income tax purposes

    $      66,540,958        

VALUATION

The Portfolio values its investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers or by an independent pricing service. Pricing services will consider many factors such as yields, credit spreads, reported trades and dealer quotes when valuing securities. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Directors. Short-term investments are valued at market value, except that obligations maturing in 13 months or less are valued using the amortized cost method of valuation, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments maturing in 13 months or less are valued using amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of inputs used to value the Portfolio’s net assets as of October 31, 2008:

 

Valuation

Inputs

         Investment in
Securities

Level 1

    $      49,840,695

Level 2

       1,523,660

Level 3

       -    
       

Total

    $      51,364,355
       

Item 2. Controls and Procedures

 

  (a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b) There has been no change to the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

Certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are filed as exhibits hereto.

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.

(Registrant)     EquiTrust Series Fund, Inc.

 

By:  

        /s/ Dennis M. Marker

          Dennis M. Marker
          Chief Executive Officer
Date:  

        12/17/2008

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/ Dennis M. Marker

          Dennis M. Marker
          Chief Executive Officer
Date:  

        12/17/2008

 

 

By:  

        /s/ James P. Brannen

          James P. Brannen
          Chief Financial Officer
Date:  

        12/18/2008