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 811-8372
Travelers Series Fund Inc.
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Christina T. Sydor, Esq.
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant's telephone number, including area code:
(800) 451-2010
Date of fiscal year end: October 31
Date of reporting period: April 30, 2003
ITEM 1. REPORT TO STOCKHOLDERS.
The Semi-Annual Report to Stockholders is filed herewith.
TRAVELERS SERIES FUND INC.
SMITH BARNEY
INTERNATIONAL ALL CAP
GROWTH PORTFOLIO
SALOMON BROTHERS
STRATEGIC TOTAL RETURN
BOND PORTFOLIO
SEMI-ANNUAL REPORT | APRIL 30, 2003
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
WHAT'S INSIDE
Letter From the Chairman............................... 1
Schedules of Investments............................... 2
Statements of Assets and Liabilities................... 15
Statements of Operations............................... 16
Statements of Changes in Net Assets.................... 17
Notes to Financial Statements.......................... 19
Financial Highlights................................... 26
LETTER FROM THE CHAIRMAN
[PHOTO]
R. JAY GERKEN
Chairman, President and Chief Executive Officer
Dear Shareholder,
The philosopher Bertrand Russell famously remarked that, "Change is one thing,
progress is another." You will notice in the following pages that we have begun
to implement some changes to your shareholder report and we will be reflecting
other changes on future reports. Our aim is to make meaningful improvements in
reporting on the management of your Fund and its performance, not just to enact
change for change's sake. Please bear with us during this transition period.
I invite you to read this report in full. Please take the opportunity to talk
to your financial adviser about this report or any other questions or concerns
you have about your Fund and your financial future. As always, thank you for
entrusting your assets to us. We look forward to helping you continue to meet
your financial goals.
Sincerely,
/s/ R. Jay Gerken
R. Jay Gerken
Chairman, President and Chief Executive Officer
May 27, 2003
1 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
SMITH BARNEY INTERNATIONAL ALL CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------
STOCKS -- 100.0%
Canada -- 1.7%
90,000 Celestica Inc. (a) $ 1,035,565
164,000 Patheon, Inc. (a) 1,652,580
- -----------------------------------------------------
2,688,145
- -----------------------------------------------------
Denmark -- 1.9%
86,000 Novo Nordisk A/S 3,120,305
- -----------------------------------------------------
Finland -- 3.1%
300,000 Nokia Oyj 4,980,356
- -----------------------------------------------------
France -- 9.1%
44,000 Aventis S.A. (b) 2,238,929
240,000 Axa (b) 3,652,163
30,000 Groupe Danone (b) 4,253,254
34,000 Total Fina Elf SA 4,466,811
- -----------------------------------------------------
14,611,157
- -----------------------------------------------------
Germany -- 3.3%
33,500 BASF AG (b) 1,497,131
30,000 Fielmann AG 1,174,005
25,000 SAP AG (b) 2,566,041
- -----------------------------------------------------
5,237,177
- -----------------------------------------------------
Hong Kong -- 5.2%
195,535 HSBC Holdings PLC (b) 2,137,358
500,000 Hutchison Whampoa Ltd. 2,782,390
900,000 Johnson Electric Holdings Ltd. 969,349
1,000,000 Li & Fung Ltd. 1,121,932
278,000 Sun Hung Kai Properties Ltd. 1,304,620
- -----------------------------------------------------
8,315,649
- -----------------------------------------------------
Ireland -- 7.4%
300,000 Bank of Ireland 3,672,960
202,753 CRH PLC 3,117,101
700,000 Grafton Group PLC 2,755,000
253,755 Irish Continental Group PLC 2,403,139
- -----------------------------------------------------
11,948,200
- -----------------------------------------------------
Italy -- 1.3%
300,000 Saipem S.p.A. 2,096,438
- -----------------------------------------------------
Japan -- 17.9%
76,000 Canon Inc. 3,076,251
216,000 Dowa Mining Co., Ltd. 716,493
40,000 Honda Motor Co., Ltd. 1,326,839
70,000 Ito-Yokado Co., Ltd. 1,648,892
See Notes to Financial Statements.
2 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY INTERNATIONAL ALL CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------
Japan -- 17.9% (continued)
380,000 JGC Corp. $ 2,680,551
118,000 Kao Corp. (b) 2,155,274
26,000 Mabuchi Motor Co., Ltd. 1,945,415
192,000 Nomura Holdings, Inc. (b) 1,904,199
1,390 NTT DoCoMo, Inc. 2,871,515
176,000 OJI Paper Co., Ltd. 666,577
42,000 Seven-Eleven Japan Co., Ltd. 1,001,680
53,000 Takeda Chemical Industries, Ltd. 1,944,995
195,000 Terumo Corp. 3,247,271
23,000 Tokyo Electron Ltd. 863,369
105,000 Yamanouchi Pharmaceutical Co., Ltd. 2,654,098
- ---------------------------------------------------------------
28,703,419
- ---------------------------------------------------------------
Mexico -- 2.2%
1,400,000 Wal-Mart de Mexico S.A. de C.V. 3,556,848
- ---------------------------------------------------------------
The Netherlands -- 6.0%
75,000 Heineken NV 2,789,940
51,662 IHC Caland N.V. 2,671,553
100,000 Royal Dutch Petroleum Co. (b) 4,097,838
- ---------------------------------------------------------------
9,559,331
- ---------------------------------------------------------------
Norway -- 1.6%
539,000 Tomra Systems ASA (b) 2,551,233
- ---------------------------------------------------------------
Singapore -- 5.2%
275,000 DBS Group Holdings, Ltd. 1,348,609
290,000 Singapore Press Holdings, Ltd. 2,697,219
2,000,000 Singapore Technologies Engineering, Ltd. 1,803,782
300,000 Venture Corp. Ltd. 2,502,748
- ---------------------------------------------------------------
8,352,358
- ---------------------------------------------------------------
Spain -- 4.4%
175,000 Banco Bilbao Vizcaya Argentaria S.A. 1,764,922
311,000 Indra Sistemas, S.A. 2,677,515
230,840 Telefonica, S.A. 2,557,791
- ---------------------------------------------------------------
7,000,228
- ---------------------------------------------------------------
Sweden -- 1.1%
183,000 Assa Abloy AB (a)(b) 1,746,333
- ---------------------------------------------------------------
Switzerland -- 7.4%
140,000 Mettler-Toledo International Inc. (a)(b) 4,970,000
9,300 Nestle S.A. (b) 1,898,099
125,000 Novartis AG 4,936,335
- ---------------------------------------------------------------
11,804,434
- ---------------------------------------------------------------
See Notes to Financial Statements.
3 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY INTERNATIONAL ALL CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------
United Kingdom -- 21.2%
145,000 BOC Group PLC $ 1,829,965
400,000 BP PLC 2,536,886
900,000 Capita Group PLC 3,649,372
650,000 Compass Group PLC 2,994,357
311,000 Diageo PLC (a) 3,452,372
100,000 GlaxoSmithKline PLC 2,005,835
183,000 Jardine Lloyd Thompson Group PLC 1,669,339
72,000 Kingfisher PLC 281,585
275,000 Lloyds TSB Group PLC 1,810,090
415,000 Misys PLC (a) 1,271,202
1,850,000 Serco Group PLC 4,616,300
675,000 Taylor Nelson Sofres PLC 1,441,394
645,889 Tesco PLC 2,045,600
2,192,373 Vodafone Group PLC 4,330,909
- -------------------------------------------------------
33,935,206
- -------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $174,371,114*) $160,206,817
- -------------------------------------------------------
(a) Non-income producing security.
(b) All or a portion of this security is on loan (See Note 6).
* Aggregate cost for Federal income tax purposes is substantially the same.
LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
$19,471,898 State Street Navigator Securities Lending Trust Prime Portfolio
(Cost -- $19,471,898) $19,471,898
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
4 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- ----------------------------------------------------------------------------------------
BONDS AND NOTES -- 79.4%
Algeria -- 0.2%
Republic of Algeria:
10,500 Loan Tranche 1, 2.625% due 9/4/06 $ 10,264
61,764 Loan Tranche 3, 2.625% due 3/4/10 58,290
- ----------------------------------------------------------------------------------------
68,554
- ----------------------------------------------------------------------------------------
The Bahamas -- 0.1%
25,000 Sun International Hotels Ltd., Sr. Sub. Notes,
8.875% due 8/15/11 26,625
- ----------------------------------------------------------------------------------------
Brazil -- 3.8%
Republic of Brazil:
369,423 Bonds, 8.000% due 4/15/14 325,900
Notes:
25,000 11.250% due 7/26/07 25,875
150,000 11.500% due 3/12/08 153,750
400,000 14.500% due 10/15/09 456,000
125,000 12.000% due 4/15/10 127,500
100,000 2.188% due 4/15/12 74,406
- ----------------------------------------------------------------------------------------
1,163,431
- ----------------------------------------------------------------------------------------
Bulgaria -- 0.4%
135,715 Bulgaria FLIRB, Series A, 2.688% due 7/28/12 130,286
- ----------------------------------------------------------------------------------------
Canada -- 0.9%
50,000 Abitibi-Consolidated Inc., Debentures, 8.850% due 8/1/30 55,589
25,000 Calpine Canada Energy Finance, Sr. Notes, 8.500% due 5/1/08 18,562
25,000 Methanex Corp., Sr. Notes, 8.750% due 8/15/12 27,688
25,000 Millar Western Forest Products Ltd., Sr. Notes, 9.875% due 5/15/08 26,125
50,000 Nexfor Inc., Notes, 7.250% due 7/1/12 55,547
50,000 Potash Corp. of Saskatchewan Inc., Notes, 4.875% due 3/1/13 49,766
25,000 Tembec Industries Inc., Sr. Notes, 8.625% due 6/30/09 (a) 26,125
- ----------------------------------------------------------------------------------------
259,402
- ----------------------------------------------------------------------------------------
Colombia -- 0.8%
Republic of Colombia:
50,000 Bonds, 8.625% due 4/1/08 53,250
175,000 Notes, 10.000% due 1/23/12 193,681
- ----------------------------------------------------------------------------------------
246,931
- ----------------------------------------------------------------------------------------
Ecuador -- 0.6%
Republic of Ecuador:
25,000 Bonds, 12.000% due 11/15/12 21,094
280,000 Step bond to yield 18.434% due 8/15/30 175,000
- ----------------------------------------------------------------------------------------
196,094
- ----------------------------------------------------------------------------------------
See Notes to Financial Statements.
5 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- -----------------------------------------------------------------------------------------
France -- 2.1%
530,000/EUR/ French Treasury Notes, 3.500% due 1/12/08 $ 597,827
25,000 Vivendi Universal SA, Sr. Notes, 9.250% due 4/15/10 (a) 28,187
- -----------------------------------------------------------------------------------------
626,014
- -----------------------------------------------------------------------------------------
Germany -- 1.9%
500,000/EUR/ Bundesobligation, Bonds, Series 141, 4.250% due 2/15/08 582,990
- -----------------------------------------------------------------------------------------
Ireland -- 0.1%
25,000 MDP Acquisitions PLC, Sr. Notes, 9.625% due 10/1/12 (a) 27,250
- -----------------------------------------------------------------------------------------
Italy -- 0.4%
125,000 Region of Lombardy, Inc., Notes, 5.804% due 10/25/32 (b) 134,184
- -----------------------------------------------------------------------------------------
The Marshall Islands -- 0.2%
50,000 General Maritime Corp., Sr. Notes, 10.000% due 3/15/13 (a) 54,250
- -----------------------------------------------------------------------------------------
Mexico -- 3.4%
United Mexican States:
450,000 Bonds, Series MTN, 8.300% due 8/15/31 509,738
Notes:
350,000 8.375% due 1/14/11 417,550
100,000 6.625% due 3/3/15 104,675
- -----------------------------------------------------------------------------------------
1,031,963
- -----------------------------------------------------------------------------------------
Morocco -- 0.3%
105,988 Kingdom of Morocco, Restructured Debentures, 2.562% due 1/5/09 99,629
- -----------------------------------------------------------------------------------------
Panama -- 0.5%
Republic of Panama, Bonds:
25,000 9.625% due 2/8/11 28,625
100,000 9.375% due 1/16/23 108,500
- -----------------------------------------------------------------------------------------
137,125
- -----------------------------------------------------------------------------------------
Peru -- 0.3%
120,000 Republic of Peru, 4.500% due 3/7/17 105,150
- -----------------------------------------------------------------------------------------
Philippines -- 0.9%
Republic of Philippines:
70,000 Bonds, 9.875% due 1/15/19 73,063
200,000 Notes, 8.375% due 3/12/09 207,000
- -----------------------------------------------------------------------------------------
280,063
- -----------------------------------------------------------------------------------------
Russia -- 2.5%
Russian Federation, Bonds:
348,108 8.250% due 3/31/10 394,667
400,400 5.000% due 3/31/30 362,112
- -----------------------------------------------------------------------------------------
756,779
- -----------------------------------------------------------------------------------------
Supra-National -- 0.4%
100,000 Corporacion Andina de Fomento, Notes, 6.875% due 3/15/12 (c) 106,786
- -----------------------------------------------------------------------------------------
See Notes to Financial Statements.
6 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- ----------------------------------------------------------------------------------------------
Turkey -- 0.3%
100,000 Republic of Turkey, Notes, 11.500% due 1/23/12 $ 101,500
- ----------------------------------------------------------------------------------------------
United Kingdom -- 0.6%
Avon Energy Partners Holdings:
50,000 Notes, 6.460% due 3/4/08 (a) 43,500
25,000 Sr. Notes, 7.050% due 12/11/07 (a) 21,875
50,000 Premier International Foods PLC, Sr. Notes, 12.000% due 9/1/09 55,250
XEROX Cap Europe PLC:
50,000 Bonds, 5.875% due 5/15/04 50,625
25,000 Notes, 5.500% due 11/15/03 25,375
- ----------------------------------------------------------------------------------------------
196,625
- ----------------------------------------------------------------------------------------------
United States -- 58.7%
50,000 aaiPharma Inc., Sr. Sub. Notes, 11.000% due 4/1/10 53,750
50,000 Acetex Corp., Sr. Notes, 10.875% due 8/1/09 55,250
50,000 AdvancePCS, Sr. Notes, 8.500% due 4/1/08 54,250
25,000 Ahold Finance USA, Inc., Sr. Unsecured Notes, 6.875% due 5/1/29 18,750
50,000 Alliant Techsystems Inc., Sr. Sub. Notes, 8.500% due 5/15/11 54,750
Allied Waste North America:
25,000 Sr. Notes, 9.250% due 9/1/12 (a) 27,500
50,000 Sr. Sub. Notes, Series B, 10.000% due 8/1/09 53,687
25,000 American Cellular Corp., Sr. Sub. Notes, 9.500% due 10/15/09 6,625
American Tower Corp.:
15,000 Discount Notes, zero coupon bond to yield 14.440% due 8/1/08 (a) 9,450
25,000 Notes, 5.000% due 2/15/10 (c) 21,250
55,000 Sr. Notes, 9.375% due 2/1/09 54,725
50,000 Ameripath Inc., Sr. Sub. Notes, 10.500% due 4/1/13 (a) 53,250
50,000 Ameristar Casinos, Inc., Sr. Sub. Notes, 10.750% due 2/15/09 56,250
150,000 Amortizing Residential Collateral Trust, Series 2002-BC6,
2.520% due 8/25/32 146,827
25,000 Anchor Glass Container Corp., Sr. Secured Notes, 11.000% due 2/15/13 (a) 26,625
50,000 AOL Time Warner Inc., Sr. Unsecured Notes, 7.625% due 4/15/31 55,343
35,000 Applica Inc., Sr. Sub. Notes, 10.000% due 7/31/08 36,750
15,000 Applied Extrusion Technologies, Inc., Sr. Notes, Series B,
10.750% due 7/1/11 11,175
50,000 Argosy Gaming Co., Sr. Sub. Notes, 10.750% due 6/1/09 55,500
100,000 AT&T Corp., Sr. Notes, 8.500% due 11/15/31 111,723
250,000 AT&T Wireless Services Inc., Sr. Notes, 8.750% due 3/1/31 (b) 312,425
60,000 Bank of America Corp., Sr. Notes, 5.250% due 2/1/07 65,211
250,000 Bayview Financial Acquisition Trust 2001, Class M3,
Home Equity Loan Trust, 2.570% due 8/25/36 (a)(b) 241,875
25,000 Berry Plastics Corp., Sr. Sub. Notes, 10.750% due 7/15/12 27,375
25,000 BRL Universal Equipment Corp., Secured Notes, 8.875% due 2/15/08 27,250
See Notes to Financial Statements.
7 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- ---------------------------------------------------------------------------------------------
United States -- 58.7% (continued)
Buckeye Technologies Inc., Sr. Sub. Notes:
25,000 8.500% due 12/15/05 $ 24,750
25,000 8.000% due 10/15/10 23,125
Calpine Corp., Sr. Notes:
50,000 8.750% due 7/15/07 36,250
50,000 8.500% due 2/15/11 36,750
50,000 Canandaigua Brands Inc., Sr. Sub. Notes, 8.500% due 3/1/09 53,000
100,000 Capital One Financial, Notes, 7.250% due 5/1/06 104,262
25,000 Capstar Hotel Co., Sr. Sub. Notes, 8.750% due 8/15/07 18,750
Charter Communications Holdings, LLC:
Sr. Discount Notes, step bond to yield:
60,000 16.603% due 4/1/11 34,800
65,000 22.011% due 5/15/11 29,575
Sr. Notes:
25,000 10.750% due 10/1/09 16,750
75,000 10.250% due 1/15/10 49,500
25,000 CMS Energy Corp., Sr. Notes, 9.875% due 10/15/07 26,125
50,000 Coast Hotels and Casinos, Inc., Sr. Sub. Notes, 9.500% due 4/1/09 54,000
Cole National Group, Inc., Sr. Sub. Notes:
25,000 8.625% due 8/15/07 23,062
25,000 8.875% due 5/15/12 22,937
25,000 Compass Minerals Group, Inc., Sr. Sub. Notes, 10.000% due 8/15/11 27,875
25,000 CONMED Corp., Sr. Sub. Notes, 9.000% due 3/15/08 26,062
25,000 Constellation Brands Inc., Sr. Sub. Notes, Series B, 8.125% due 1/15/12 26,656
100,000 Cox Communications Inc., Notes, 7.750% due 11/1/10 120,266
Crown Castle International Corp.:
25,000 Sr. Discount Notes, 10.625% due 11/15/07 25,937
50,000 Sr. Notes, 10.750% due 8/1/11 51,750
CSC Holdings, Inc., Sr. Sub. Debentures:
75,000 9.875% due 2/15/13 78,937
25,000 10.500% due 5/15/16 28,312
50,000 CSK Auto Inc., Sr. Notes, 12.000% due 6/15/06 55,062
25,000 Dana Corp., Notes, 9.000% due 8/15/11 27,250
25,000 Del Monte Corp., Sr. Sub. Notes, Series B, 9.250% due 5/15/11 27,156
27,739 Delta Funding NIM, Series 2000-1, Home Equity Loan Trust,
12.500% due 10/26/30 (a) 27,739
50,000 Devon Financing Corp., Unsecured Notes, 6.875% due 9/30/11 57,603
25,000 DEX Media East LLC, Sr. Notes, 9.875% due 11/15/09 (a) 28,750
50,000 DIRECTV Holdings LLC, Sr. Notes, 8.375% due 3/15/13 (a) 56,250
25,000 Dole Foods Co., Sr. Notes, 8.875% due 3/15/11 (a) 27,312
EchoStar DBS Corp., Sr. Notes:
25,000 10.375% due 10/1/07 28,125
50,000 9.125% due 1/15/09 56,500
50,000 9.375% due 2/1/09 54,187
90,000 Edison Mission Energy, Sr. Notes, 9.875% due 4/15/11 81,675
See Notes to Financial Statements.
8 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- -------------------------------------------------------------------------------------------------
United States -- 58.7% (continued)
25,000 Extendicare Health Service, Inc., Sr. Sub. Notes, 9.500% due 7/1/10 $ 24,875
50,000 Eye Care Centers of America, Sr. Sub. Notes, 9.125% due 5/1/08 46,250
25,000 Fedders North America, Inc., Sr. Sub. Notes, 9.375% due 8/15/07 21,000
1,250,000 Federal Home Loan Mortgage Corp., Gold, 6.000% due 5/1/33 (d) 1,300,390
Federal National Mortgage Association:
1,000,000 6.500% due 5/1/33 (d) 1,045,000
2,500,000 7.000% due 5/1/33 (d) 2,642,187
50,000 Felcor Lodging Ltd. Partnership, Sr. Notes, 8.500% due 6/1/11 48,875
50,000 Finlay Fine Jewelry Corp., Sr. Notes, 8.375% due 5/1/08 51,250
25,000 Fleming Cos. Inc., Sr. Notes, 10.125% due 4/1/08 (e) 3,687
35,000 Flowserve Corp., Sr. Sub. Notes, 12.250% due 8/15/10 39,725
75,000 FMC Corp., Debentures, 7.750% due 7/1/11 72,504
25,000 Ford Motor Co., Notes, 7.450% due 7/16/31 22,311
25,000 Ford Motor Credit Corp., Notes, 7.250% due 10/25/11 25,102
100,000 G-Force cdo, Ltd., Series 2002-1A, 2.220% due 6/25/37 (a) 99,187
60,000 The Gap Inc., Notes, 10.550% due 12/15/08 71,850
115,000 General Electric Capital Corp., Notes, 3.500% due 5/1/08 115,654
Global Crossing Holdings Ltd., Sr. Notes:
10,000 9.125% due 11/15/06 (e) 338
55,000 9.625% due 5/15/08 (e) 1,856
100,000 The Goldman Sachs Group Inc., Notes, 6.600% due 1/15/12 112,932
25,000 Graphic Packaging Corp., Sub. Notes, 8.625% due 2/15/12 26,375
360,000 Green Tree Home Equity Loan Trust, 7.880% due 9/15/30 (b) 385,110
25,000 Grey Wolf Inc., Sr. Notes, 8.875% due 7/1/07 25,906
25,000 Guitar Center Management, Sr. Notes, 11.000% due 7/1/06 25,687
50,000 HCA Inc., Notes, 6.910% due 6/15/05 53,177
25,000 Herbst Gaming Inc., Secured Notes, Series B, 10.750% due 9/1/08 27,562
25,000 Hilton Hotels Corp., Notes, 7.625% due 12/1/12 26,680
50,000 HMH Properties, Inc., Sr. Notes, Series C, 8.450% due 12/1/08 51,500
25,000 Holmes Group Inc., Sr. Sub. Notes, Series B, 9.875% due 11/15/07 22,875
50,000 Home Interiors & Gifts Inc., Sr. Sub. Notes, 10.125% due 6/1/08 51,250
50,000 Horseshoe Gaming Holding Corp., Sr. Sub. Notes, Series B,
8.625% due 5/15/09 53,375
200,000 Household Finance Corp., Notes, 8.000% due 7/15/10 (b) 241,053
40,000 IASIS Healthcare Corp., Sr. Sub. Notes, 13.000% due 10/15/09 44,800
25,000 Icon Health & Fitness Inc., Sr. Sub. Notes, 11.250% due 4/1/12 26,125
25,000 InSight Health Services Corp., Sr. Sub. Notes, Series B, 9.875% due 11/1/11 23,625
25,000 Insight Midwest, Sr. Notes, 10.500% due 11/1/10 27,812
25,000 Interface Inc., Sr. Sub. Notes, Series B, 9.500% due 11/15/05 20,375
50,000 International Lease Finance Corp., Notes, 6.375% due 3/15/09 54,170
50,000 Iron Mountain Inc., Sr. Notes, 8.125% due 5/15/08 52,500
50,000 ISP Chemco Inc., Sr. Sub. Notes, Series B, 10.250% due 7/1/11 54,750
25,000 J.C. Penney Co. Inc., Notes, 8.000% due 3/1/10 26,688
See Notes to Financial Statements.
9 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- ----------------------------------------------------------------------------------------------
United States -- 58.7% (continued)
250,000 J.P. Morgan Chase Commercial Mortgage, Series 2001-CIBC, Class A2,
6.001% due 3/15/33 (b) $ 276,299
50,000 Jefferson Smurfit Corp., Sr. Notes, 8.250% due 10/1/12 54,625
40,000 Kraft Foods Inc., Notes, 5.625% due 11/1/11 41,923
25,000 L-3 Communications Corp., Sr. Sub. Notes, 7.625% due 6/15/12 27,688
100,000 LB Commercial Conduit Mortgage Trust, Series 1999-C1, Class A2,
6.780% due 6/15/31 (b) 114,617
25,000 LDM Technologies, Inc., Sr. Sub. Notes, Series B, 10.750% due 1/15/07 23,500
Levi Strauss & Co.:
35,000 Notes, 6.800% due 11/1/03 35,788
Sr. Notes:
10,000 11.625% due 1/15/08 8,500
65,000 12.250% due 12/15/12 (a) 54,275
50,000 LIN Television Corp., Sr. Notes, 8.000% due 1/15/08 54,250
50,000 Magnum Hunter Resources, Inc., Sr. Notes, 9.600% due 3/15/12 54,250
Mail-Well I Corp:
25,000 Sr. Notes, 9.625% due 3/15/12 25,500
25,000 Sr. Sub. Notes, Series B, 8.750% due 12/15/08 22,375
Mediacom Broadband LLC, Sr. Notes:
50,000 9.500% due 1/15/13 54,000
25,000 11.000% due 7/15/13 28,563
125,000 Merit Securities Corp., Series 11PA, Class B2, 2.820% due 9/28/32 112,031
50,000 MGM MIRAGE, Sr. Sub. Notes, 9.750% due 6/1/07 56,250
Millennium America Inc.:
25,000 Sr. Notes, 9.250% due 6/15/08 (a) 27,625
25,000 Sr. Sub. Notes, 9.250% due 6/15/08 27,625
75,000 Morgan Stanley, Notes, 4.250% due 5/15/10 74,590
25,000 Motorola Inc., Sr. Notes, 8.000% due 11/1/11 28,875
175,000 Nextel Communications, Sr. Notes, 9.375% due 11/15/09 (b) 189,875
25,000 NextMedia Operating Inc., Sr. Sub. Notes, 10.750% due 7/1/11 27,813
75,000 NiSource Finance Corp., Sr. Notes, 7.500% due 11/15/03 77,346
25,000 NMHG Holding Co., Sr. Notes, 10.000% due 5/15/09 26,875
50,000 Nortek, Inc., Sr. Notes, Series B, 8.875% due 8/1/08 52,000
25,000 North Atlantic Trading Co., Sr. Notes, Series B, 11.000% due 6/15/04 25,094
15,000 Noveon Inc., Sr. Sub. Notes, Series B, 11.000% due 2/28/11 17,025
40,000 Ocean Energy, Sr. Sub. Notes, Series B, 8.375% due 7/1/08 42,250
25,000 OM Group, Inc., Sr. Sub. Notes, 9.250% due 12/15/11 21,500
50,000 P&L Coal Holdings Corp., Sr. Sub. Notes, Series B, 9.625% due 5/15/08 52,563
Park Place Entertainment Corp., Sr. Sub. Notes:
25,000 9.375% due 2/15/07 27,250
25,000 7.875% due 3/15/10 26,156
25,000 8.125% due 5/15/11 26,563
See Notes to Financial Statements.
10 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- --------------------------------------------------------------------------------------------
United States -- 58.7% (continued)
25,000 PETCO Animal Supplies, Inc., Sr. Sub. Notes, 10.750% due 11/1/11 $ 28,250
25,000 Pioneer Natural Resources Co., Sr. Notes, 9.625% due 4/1/10 30,795
Plastipak Holdings, Inc., Sr. Notes:
25,000 10.750% due 9/1/11 27,125
25,000 10.750% due 9/1/11 (a) 27,125
50,000 Playtex Products, Inc., Sr. Sub. Notes, 9.375% due 6/1/11 54,500
45,000 Pogo Producing Co., Sr. Sub. Notes, Series B, 8.250% due 4/15/11 49,050
25,000 Pride International Inc., Sr. Notes, 10.000% due 6/1/09 27,500
25,000 Prime Hospitality Corp., Sr. Sub. Notes, Series B, 8.375% due 5/1/12 23,625
75,000 Qwest Corp., Notes, 8.875% due 3/15/12 (a) 82,500
50,000 Qwest Service Corp., Notes, 14.000% due 12/15/14 (a) 57,250
25,000 R.H. Donnelley Financial Corp. Inc., Sr. Sub. Notes,
10.875% due 12/15/12 (a) 29,063
25,000 Radio One, Inc., Sr. Sub. Notes, Series B, 8.875% due 7/1/11 27,625
25,000 Radnor Holdings Inc., Sr. Notes, 11.000% due 3/15/10 (a) 25,125
29,000 Remington Product Co., LLC, Sr. Sub. Notes, Series D,
11.000% due 5/15/06 29,725
37,647 Republic Engineered Products LLC, Secured Notes, 10.000% due 8/16/09 9,412
200,000 Republic Technologies International, LLC, Sr. Sub. Notes,
13.750% due 7/15/09 (e) 2,000
25,000 Resolution Performance Products LLC/RPP Capital Corp., Sr. Notes,
9.500% due 4/15/10 (a) 26,875
25,000 Rexnord Corp., Sr. Sub. Notes, 10.125% due 12/15/12 (a) 27,000
Rite Aid Corp.:
25,000 Notes, 7.125% due 1/15/07 24,250
50,000 Sr. Notes, 11.250% due 7/1/08 54,500
50,000 Riverwood International Co., Sr. Notes, 10.625% due 8/1/07 52,500
75,000 Safeway Inc., Debentures, 7.250% due 2/1/31 84,222
25,000 Saks Inc., Notes, 9.875% due 10/1/11 28,125
50,000 SBA Communications Corp., Sr. Discount Notes, 12.000% due 3/1/08 45,250
55,000 Sealy Mattress Co., Sr. Discount Notes, Series B, 10.875% due 12/15/07 57,750
60,000 Sears Roebuck Acceptance Corp., Notes, 7.000% due 6/1/32 61,469
25,000 Sequa Corp., Sr. Notes, 9.000% due 8/1/09 26,250
25,000 Sitel Corp., Sr. Sub. Notes, 9.250% due 3/15/06 24,125
Sprint Capital Corp., Notes:
200,000 8.375% due 3/15/12 223,500
50,000 6.875% due 11/15/28 46,500
75,000 8.750% due 3/15/32 82,500
50,000 Starwood Hotels & Resorts Worldwide, Inc., Notes, 7.875% due 5/1/12 52,563
75,000 Station Casinos, Inc., Sr. Sub. Notes, 9.875% due 7/1/10 83,063
25,000 Stone Energy Corp., Sr. Sub. Notes, 8.250% due 12/15/11 26,188
See Notes to Financial Statements.
11 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- ----------------------------------------------------------------------------------------
United States -- 58.7% (continued)
16,000 TeleCorp PCS, Inc., Sr. Sub. Notes, 10.625% due 7/15/10 $ 19,120
55,000 TeleWest Communication PLC, Sr. Discount Notes, step bond to yield
23.448% due 2/1/10 10,450
50,000 Tenet Healthcare Corp., Sr. Notes, 6.875% due 11/15/31 45,750
50,000 Terex Corp., Sr. Sub. Notes, Series B, 10.375% due 4/1/11 55,750
25,000 Terra Industries, Sr. Notes, Series B, 10.500% due 6/15/05 24,750
75,000 Time Warner Inc., Debentures, 6.625% due 5/15/29 74,328
50,000 Tommy Hilfiger U.S.A., Inc., Sr. Notes, 6.850% due 6/1/08 49,750
50,000 Triad Hospitals Inc., Sr. Notes, Series B, 8.750% due 5/1/09 54,625
75,000 Tropical Sportswear International Corp., Sr. Sub. Notes, Series A,
11.000% due 6/15/08 76,875
25,000 TRW Automotive Inc., Sr. Notes, 9.375% due 2/15/13 (a) 27,438
25,000 Turning Stone Casino Resort Enterprise, Sr. Notes,
9.125% due 12/15/10 (a) 26,438
400,000 U.S. Treasury Bonds, 6.250% due 5/15/30 (b) 482,110
U.S. Treasury Notes:
250,000 5.625% due 5/15/08 (b) 282,393
2,000,000 4.875% due 2/15/12 (b) 2,168,908
50,000 Unisys Corp., Sr. Notes, 8.125% due 6/1/06 53,750
United Industries Corp., Sr. Sub. Notes:
25,000 9.875% due 4/1/09 (a) 26,625
50,000 Series B, 9.875% due 4/1/09 53,250
United Pan-Europe Communications N.V., Series B:
Sr. Discount Notes:
50,000 Step bond to yield 49.267% due 11/1/09 (e) 5,063
30,000 Step bond to yield 28.402% due 2/1/10 (e) 3,038
Sr. Notes:
25,000 11.250% due 2/1/10 (e) 3,438
25,000 11.500% due 2/1/10 (e) 3,438
25,000 Vanguard Health Systems, Sr. Sub. Notes, 9.750% due 8/1/11 25,375
25,000 Venetian Casino Resort LLC/Las Vegas Sands, Inc., Secured Notes,
11.000% due 6/15/10 27,563
50,000 Viacom Inc., Sr. Notes, 6.625% due 5/15/11 57,692
25,000 Vicar Operating Inc., Sr. Notes, 9.875% due 12/1/09 27,750
Vintage Petroleum, Inc., Sr. Sub. Notes:
25,000 9.750% due 6/30/09 26,875
25,000 7.875% due 5/15/11 25,781
200,000 Washington Mutual Finance Corp., Sr. Notes, 6.875% due 5/15/11 (b) 230,746
50,000 Western Gas Resources, Inc., Sr. Sub. Notes, 10.000% due 6/15/09 54,750
25,000 Westport Resources Corp., Sr. Sub. Notes, 8.250% due 11/1/11 27,375
See Notes to Financial Statements.
12 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT+ SECURITY VALUE
- --------------------------------------------------------------------------------------------
United States -- 58.7% (continued)
The Williams Cos., Inc.:
50,000 Bonds, 8.750% due 3/15/32 (a) $ 49,000
Notes:
25,000 7.625% due 7/15/19 22,750
50,000 Series A, 6.750% due 1/15/06 48,500
25,000 Winsloew Furniture Inc., Sr. Sub. Notes, Series B, 12.750% due 8/15/07 16,406
85,000 World Color Press, Inc., Sr. Sub. Notes, 8.375% due 11/15/08 88,965
75,000 Yell Finance BV, Sr. Notes, 10.750% due 8/1/11 84,375
- --------------------------------------------------------------------------------------------
17,904,923
- --------------------------------------------------------------------------------------------
TOTAL BONDS AND NOTES
(Cost -- $22,823,869) 24,236,554
- --------------------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------------------
COMMON STOCK (f) -- 0.1%
644 NTL Inc. 10,948
323 Pillowtex Corp. 61
524 SpectraSite, Inc. 18,602
- --------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $352,363) 29,611
- --------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
CSC Holdings Inc.:
500 Series H, 11.750% due 10/1/07 52,500
150 Series M, 11.125% due 4/1/08 15,712
- --------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost -- $63,375) 68,212
- --------------------------------------------------------------------------------------------
WARRANTS SECURITY VALUE
- --------------------------------------------------------------------------------------------
WARRANTS (f) -- 0.0%
15 American Tower Corp., Expire 8/1/08 1,132
1,701 Pillowtex Corp., Expire 11/24/09 51
200 Republic Technologies International, LLC, Expire 7/15/09 2
200 Winsloew Furniture Inc., Expire 8/15/07 100
- --------------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost -- $4,367) 1,285
- --------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $23,243,974) 24,335,662
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
13 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SALOMON BROTHERS STRATEGIC TOTAL RETURN BOND PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 20.3%
$ 558,000 Goldman, Sachs & Co., 1.250% due 5/1/03; Proceeds at maturity --
$558,019; (Fully collateralized by U.S. Treasury Bills, Notes
and Bonds, 0.000% to 4.000% due 5/8/03 to 11/15/12;
Market value -- $569,162) $ 558,000
5,614,000 Merrill Lynch & Co., Inc., 1.250% due 5/1/03; Proceeds at maturity --
$5,614,195; (Fully collateralized by various U.S. government agency
obligations, 0.000% to 4.875% due 5/9/03 to 11/15/07;
Market value -- $5,726,296) 5,614,000
- --------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost -- $6,172,000) 6,172,000
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $29,415,974*) $30,507,662
- --------------------------------------------------------------------------------------------
(a) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(b) All or a portion of this security has been segregated for "to-be-announced"
trades (See Note 8).
(c) Convertible bonds exchangeable for shares of common stock.
(d) Security is issued on a "to-be-announced" basis (See Note 8).
(e) Security is currently in default.
(f) Non-income producing security.
+ Face amount denominated in U.S. dollars unless otherwise indicated.
* Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviations used in this schedule:
EUR -- Euro
FLIRB -- Front Loaded Interest Reduction Bond
See Notes to Financial Statements.
14 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
Smith Barney Salomon Brothers
International Strategic Total
All Cap Growth Return Bond
Portfolio Portfolio
- -------------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost -- $174,371,114 and
$23,243,974, respectively) $160,206,817 $24,335,662
Repurchase agreements, at value (Cost -- $6,172,000) -- 6,172,000
Loaned securities collateral, at value
(Cost -- $19,471,898) (Note 6) 19,471,898 --
Foreign currency, at value (Cost -- $239,201) 239,576 --
Cash -- 622
Receivable for securities sold 1,334,518 252,273
Dividends and interest receivable 879,025 357,321
Receivable for Fund shares sold 742,778 --
Receivable for open forward foreign currency
contracts (Note 4) -- 21,315
Other assets 23,854 --
- ------------------------------------------------------------------------------------------
Total Assets 182,898,466 31,139,193
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities on loan (Note 6) 19,471,898 --
Bank overdraft 2,455,909 --
Payable for Fund shares purchased 1,751,927 28,828
Management fees payable 111,087 18,712
Payable for open forward foreign currency
contracts (Note 4) 14,521 --
Payable for securities purchased -- 6,472,638
Accrued expenses 118,826 20,722
- ------------------------------------------------------------------------------------------
Total Liabilities 23,924,168 6,540,900
- ------------------------------------------------------------------------------------------
Total Net Assets $158,974,298 $24,598,293
- ------------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 181 $ 23
Capital paid in excess of par value 245,032,726 25,867,533
Undistributed net investment income 966,120 414,468
Accumulated net realized loss from security transactions (72,890,348) (2,781,856)
Net unrealized appreciation (depreciation) of
investments and foreign currencies (14,134,381) 1,098,125
- ------------------------------------------------------------------------------------------
Total Net Assets $158,974,298 $24,598,293
- ------------------------------------------------------------------------------------------
Shares Outstanding 18,067,737 2,286,116
- ------------------------------------------------------------------------------------------
Net Asset Value $8.80 $10.76
- ------------------------------------------------------------------------------------------
See Notes to Financial Statements.
15 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended April 30, 2003
Smith Barney Salomon Brothers
International Strategic Total
All Cap Growth Return Bond
Portfolio Portfolio
- --------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 2,073,624 $ 2,203
Interest 35,132 722,062
Less: Foreign withholding tax (243,499) --
- ------------------------------------------------------------------------------------------
Total Investment Income 1,865,257 724,265
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 738,008 89,258
Custody 53,035 18,692
Shareholder communications 23,328 4,094
Audit and legal 17,303 11,672
Shareholder servicing fees 4,827 2,482
Directors' fees 3,614 1,224
Other 3,713 1,278
- ------------------------------------------------------------------------------------------
Total Expenses 843,828 128,700
- ------------------------------------------------------------------------------------------
Net Investment Income 1,021,429 595,565
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES
(NOTES 3 AND 4):
Realized Gain (Loss) From:
Security transactions (excluding short-term securities) (8,524,879) 256,331
Foreign currency transactions (22,234) --
- ------------------------------------------------------------------------------------------
Net Realized Gain (Loss) (8,547,113) 256,331
- ------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) From:
Security transactions 9,269,963 1,632,814
Foreign currency transactions 20,050 6,437
- ------------------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) 9,290,013 1,639,251
- ------------------------------------------------------------------------------------------
Net Gain on Investments and Foreign Currencies 742,900 1,895,582
- ------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 1,764,329 $2,491,147
- ------------------------------------------------------------------------------------------
See Notes to Financial Statements.
16 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 2003 (unaudited)
and the Year Ended October 31, 2002
Smith Barney
International All Cap Growth Portfolio 2003 2002
- -------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,021,429 $ 951,109
Net realized loss (8,547,113) (13,651,037)
(Increase) decrease in net unrealized
depreciation 9,290,013 (30,620,765)
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Operations 1,764,329 (43,320,693)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (947,561) (1,049,300)
- ------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (947,561) (1,049,300)
- ------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 172,442,514 604,439,911
Net asset value of shares issued for
reinvestment of dividends 947,561 1,049,300
Cost of shares reacquired (185,299,523) (634,627,288)
- ------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share
Transactions (11,909,448) (29,138,077)
- ------------------------------------------------------------------------------
Decrease in Net Assets (11,092,680) (73,508,070)
NET ASSETS:
Beginning of period 170,066,978 243,575,048
- ------------------------------------------------------------------------------
End of period* $ 158,974,298 $ 170,066,978
- ------------------------------------------------------------------------------
* Includes undistributed net investment income
of: $966,120 $914,486
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
17 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Six Months Ended April 30, 2003 (unaudited)
and the Year Ended October 31, 2002
Salomon Brothers Strategic Total Return Bond
Portfolio 2003 2002
- ------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 595,565 $ 863,613
Net realized gain 256,331 24,529
Increase (decrease) in net unrealized appreciation 1,639,251 (244,459)
- ------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,491,147 643,683
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,052,602) (956,847)
- ------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (1,052,602) (956,847)
- ------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 4,120,275 10,242,369
Net asset value of shares issued for reinvestment
of dividends 1,052,602 956,847
Cost of shares reacquired (3,162,774) (7,554,055)
- ------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 2,010,103 3,645,161
- ------------------------------------------------------------------------------
Increase in Net Assets 3,448,648 3,331,997
NET ASSETS:
Beginning of period 21,149,645 17,817,648
- ------------------------------------------------------------------------------
End of period* $24,598,293 $21,149,645
- ------------------------------------------------------------------------------
* Includes undistributed net investment income of: $414,468 $871,505
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
18 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The Smith Barney International All Cap Growth Portfolio and Salomon Brothers
Strategic Total Return Bond Portfolio, ("Fund(s)") are separate investment
funds of the Travelers Series Fund Inc. ("Series"). The Series, a Maryland
corporation, is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company and consists
of these Funds and twelve other separate investment funds: AIM Capital
Appreciation, Alliance Growth, MFS Total Return, Putnam Diversified Income,
Smith Barney High Income, Smith Barney Large Cap Value, Smith Barney Money
Market, Smith Barney Large Capitalization Growth, Travelers Managed Income, Van
Kampen Enterprise, Smith Barney Mid Cap Core and Smith Barney Aggressive Growth
Portfolios. Shares of the Series are offered only to insurance company separate
accounts which fund certain variable annuity and variable life insurance
contracts. The financial statements and financial highlights for the other
funds are presented in separate shareholder reports.
The significant accounting policies consistently followed by the Funds are: (a)
security transactions are accounted for on trade date; (b) securities traded on
national securities markets are valued at the closing prices in the primary
exchange on which they are traded; securities listed or traded on certain
foreign exchanges or other markets whose operations are similar to the U.S.
over-the-counter market (including securities listed on exchanges where the
primary market is believed to be over-the-counter) and listed securities for
which no sales price was reported on that date are valued at the mean between
the bid and asked prices. Securities which are listed or traded on more than
one exchange or market are valued at the quotations on the exchange or market
determined to be the primary market for such securities; (c) securities
maturing within 60 days are valued at cost plus accreted discount or minus
amortized premium, which approximates value; (d) gains or losses on the sale of
securities are calculated by using the specific identification method; (e)
interest income, adjusted for amortization of premium and accretion of
discount, is recorded on an accrual basis; (f) dividend income is recorded on
the ex-dividend date; foreign dividends are recorded on the ex-dividend date or
as soon as practical after the Funds determine the existence of a dividend
declaration after exercising reasonable due diligence; (g) dividends and
distributions to shareholders are recorded on the ex- dividend date; the Funds
distribute dividends and capital gains, if any, annually;
19 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(h) the accounting records of the Funds are maintained in U.S. dollars. All
assets and liabilities denominated in foreign currencies are translated into
U.S. dollars based on the rate of exchange of such currencies against U.S.
dollars on the date of valuation. Purchases and sales of securities and income
and expenses are translated at the rate of exchange quoted on the respective
date that such transactions are recorded. Differences between income or expense
amounts recorded and collected or paid are adjusted when reported by the
custodian; (i) the character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America; (j)
each Fund intends to comply with the requirements of the Internal Revenue Code
of 1986, as amended pertaining to regulated investment companies and make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise taxes; and (k) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
In addition, the Funds may enter into forward exchange contracts in order to
hedge against foreign currency risk. These contracts are marked to market
daily, by recognizing the difference between the contract exchange rate and the
current market rate as an unrealized gain or loss. Realized gains or losses are
recognized when contracts are settled.
In addition, the yields of emerging market debt obligations reflect, among
other things, perceived credit risk. The consequences of political, social,
economic or diplomatic changes may have disruptive effects on market prices of
investments held by the Funds. The Funds' investment in non-dollar-denominated
securities may also result in foreign currency losses caused by devaluations
and exchange rate fluctuations.
20 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. Management Agreement and Transactions with Affiliated Persons
Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary
of Citigroup Inc. ("Citigroup"), acts as investment manager of the Smith Barney
International All Cap Growth Portfolio ("SBIACG"). SBIACG pays SBFM a
management fee calculated at the annual rate of 0.90% of its average daily net
assets. In addition, Travelers Investment Adviser, Inc., ("TIA"), an affiliate
of SBFM, acts as the investment manager of the Salomon Brothers Strategic Total
Return Bond Portfolio ("SBSTRB"). SBSTRB pays TIA a management fee calculated
at an annual rate of 0.80% of its average daily net assets. These fees are
calculated daily and paid monthly.
TIA has entered into a sub-advisory agreement with Salomon Brothers Asset
Management Inc ("SaBAM"), another indirect wholly-owned subsidiary of
Citigroup. Pursuant to the sub-advisory agreement, SaBAM is responsible for the
day-to-day portfolio operations and investment decisions for SBSTRB and is
compensated for such services. TIA pays SaBAM a monthly fee calculated at an
annual rate of 0.375% of the average daily net assets of SBSTRB.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent and PFPC Global Fund Services ("PFPC") acts as the Funds'
sub-transfer agent. CTB receives account fees and asset-based fees that vary
according to the size and type of account. PFPC is responsible for shareholder
recordkeeping and financial processing for all shareholder accounts and is paid
by CTB. For the six months ended April 30, 2003, each Fund paid transfer agent
fees of $2,500 to CTB.
During the six months ended April 30, 2003, Citigroup Global Markets Inc.,
formerly known as Salomon Smith Barney Inc., another indirect wholly-owned
subsidiary of Citigroup, did not receive any brokerage commissions from SBIACG.
Most of the officers and one Director of the Series are employees of Citigroup
or its affiliates.
21 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. Investments
For the six months ended April 30, 2003, the aggregate cost of purchases and
proceeds from sales of investments (including maturities of long-term
securities, but excluding short-term securities) were as follows:
SBIACG SBSTRB
- --------------------------------------------------------------------------
Purchases $20,920,625 $39,614,452
- --------------------------------------------------------------------------
Sales 32,476,862 37,794,856
- --------------------------------------------------------------------------
At April 30, 2003, the gross unrealized appreciation and depreciation of
investments for Federal income tax purposes were substantially as follows:
SBIACG SBSTRB
- -------------------------------------------------------------------------
Gross unrealized appreciation $ 15,882,913 $1,791,203
Gross unrealized depreciation (30,047,210) (699,515)
- -------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $(14,164,297) $1,091,688
- -------------------------------------------------------------------------
4. Forward Foreign Currency Contracts
A forward foreign currency contract is an agreement between two parties to buy
and sell a currency at a set price on a future date. The contract is
marked-to-market daily and the change in value is recorded by the Funds as an
unrealized gain or loss. When a forward foreign currency contract is
extinguished, through either delivery or offset by entering into another
forward foreign currency contract, the Funds record a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value of the contract at the time it was extinguished or offset.
The Funds bear the market risk that arises from changes in foreign currency
exchange rates and the credit risk should a counterparty be unable to meet the
terms of such contracts.
At April 30, 2003, the Funds had open forward foreign currency contracts as
described below. The unrealized gain (loss) on the open contracts is reflected
in the accompanying financial statements as follows:
Smith Barney International All Cap Growth Portfolio
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Loss
- -------------------------------------------------------------------------
To Sell:
Japanese Yen 158,914,434 $1,334,518 5/1/03 $(14,521)
- -------------------------------------------------------------------------
22 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Salomon Brothers Strategic Total Return Bond Portfolio
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain
-----------------------------------------------------------
To Buy:
Euro 1,075,950 $1,203,020 5/2/03 $21,315
-----------------------------------------------------------
5. Repurchase Agreements
The Funds purchase (and their custodian takes possession of) U.S. government
securities from securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day)
at an agreed-upon higher repurchase price. The Funds require continual
maintenance of the market value of the collateral (plus accrued interest) in
amounts at least equal to the repurchase price.
6. Lending of Portfolio Securities
The Funds have an agreement with their custodian whereby the custodian may lend
securities owned by the Funds to brokers, dealers and other financial
organizations. Fees earned by the Funds on securities lending are recorded as
interest income. Loans of securities by the Funds are collateralized by cash,
U.S. government securities, high quality money market instruments or other
securities that are maintained at all times in an amount at least equal to the
current market value of the loaned securities, plus a margin which may vary
depending on the type of securities loaned. The custodian establishes and
maintains the collateral in segregated accounts.
The Funds maintain exposure for the risk of any loss in the investment of
amounts received as collateral.
At April 30, 2003, SBIACG loaned common stocks having a market value of
$18,818,937. SBIACG received cash collateral amounting to $19,471,898 which was
invested in the State Street Navigator Securities Lending Trust Prime
Portfolio. In addition to the cash collateral, SBIACG held securities
collateral amounting to $108,052.
Income earned by SBIACG from securities loaned for the six months ended April
30, 2003, was $24,389.
At April 30, 2003, SBSTRB did not have any securities on loan.
23 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
7. Portfolio Concentration
The Funds' investments in foreign securities may involve risks not present in
domestic investments. Since securities may be denominated in a foreign currency
and may require settlement in foreign currencies and pay interest or dividends
in foreign currencies, changes in the relationship of these foreign currencies
to the U.S. dollar can significantly affect the value of the investments and
earnings of the Funds. Foreign investments may also subject the Funds to
foreign government exchange restrictions, expropriation, taxation or other
political, social or economic developments, all of which could affect the
market and/or credit risk of the investments.
In addition to the risks described above, risks may arise from forward foreign
currency contracts with respect to the potential inability of counter-parties
to meet the terms of their contracts.
8. Securities Traded on a To-Be-Announced Basis
The Funds may trade securities on a "to-be-announced" ("TBA") basis. In a TBA
transaction, the Funds commit to purchasing or selling securities for which
specific information is not yet known at the time of the trade, particularly
the face amount and maturity date in GNMA transactions. Securities purchased on
a TBA basis are not settled until they are delivered to the Funds, normally 15
to 45 days later. These transactions are subject to market fluctuations and
their current value is determined in the same manner as for other securities.
At April 30, 2003, SBSTRB held TBA securities with a total cost of $4,960,938
and SBIACG did not hold any TBA securities.
9. Capital Shares
At April 30, 2003, the Series had six billion shares of capital stock
authorized with a par value of $0.00001 per share. Each share of a Fund
represents an equal proportionate interest in that Fund with each share of the
same Fund and has an equal entitlement to any dividends and distributions made
by the Fund.
24 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended
April 30, 2003 October 31, 2002
- -------------------------------------------------------------------------------
Smith Barney International All Cap Growth Portfolio
Shares sold 20,040,489 57,913,258
Shares issued on reinvestment 108,915 121,870
Shares reacquired (21,445,348) (60,467,175)
- -------------------------------------------------------------------------------
Net Decrease (1,295,944) (2,432,047)
- -------------------------------------------------------------------------------
Salomon Brothers Strategic Total Return Bond Portfolio
Shares sold 401,481 986,807
Shares issued on reinvestment 105,155 95,020
Shares reacquired (307,640) (730,344)
- -------------------------------------------------------------------------------
Net Increase 198,996 351,483
- -------------------------------------------------------------------------------
25 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Smith Barney International
All Cap Growth Portfolio 2003/(1)(2)/ 2002/(2)/ 2001/(2)/ 2000/(2)/ 1999 1998
- -----------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $8.78 $11.18 $18.52 $16.92 $12.60 $13.23
- -----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.05 0.04 0.05 0.02 0.02 0.05
Net realized and unrealized
gain (loss) 0.02 (2.39) (7.39) 1.71 4.35 (0.68)
- -----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.07 (2.35) (7.34) 1.73 4.37 (0.63)
- -----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.05) (0.05) -- (0.13) (0.05) --
- -----------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.05) -- (0.13) (0.05) --
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $8.80 $ 8.78 $11.18 $18.52 $16.92 $12.60
- -----------------------------------------------------------------------------------------------
Total Return 0.78%++ (20.97)% (39.63)% 10.18% 34.73% (4.76)%
- -----------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $159 $170 $244 $462 $309 $224
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.03%+ 1.00% 1.00% 0.98% 1.00% 1.00%
Net investment income 1.25+ 0.42 0.31 0.11 0.16 0.37
- -----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 13% 27% 22% 15% 36% 34%
- -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
26 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Salomon Brothers Strategic
Total Return Bond Portfolio 2003/(1)/ 2002/(2)/ 2001/(2)/ 2000/(2)/ 1999 1998
- ----------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $10.13 $10.27 $ 9.89 $10.22 $10.97 $12.52
- -------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income/(3)/ 0.27 0.51 0.58 0.81 0.75 0.84
Net realized and unrealized
gain (loss)/(3)/ 0.86 (0.17) 0.48 (0.37) (0.85) (1.09)
- -------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.13 0.34 1.06 0.44 (0.10) (0.25)
- -------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.50) (0.48) (0.68) (0.77) (0.65) (0.66)
Net realized gains -- -- -- -- -- (0.64)
- -------------------------------------------------------------------------------------------
Total Distributions (0.50) (0.48) (0.68) (0.77) (0.65) (1.30)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.76 $10.13 $10.27 $ 9.89 $10.22 $10.97
- -------------------------------------------------------------------------------------------
Total Return 11.57%++ 3.36% 10.99% 4.34% (0.96)% (2.50)%
- -------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $25 $21 $18 $20 $23 $28
- -------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.15%+ 1.24% 1.23% 0.98% 1.13% 1.03%
Net investment income/(3)/ 5.34+ 4.95 5.69 7.93 6.43 7.31
- -------------------------------------------------------------------------------------------
Portfolio Turnover Rate 171% 385% 448% 54% 135% 280%
- -------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) Effective November 1, 2001, the Fund adopted a change in the accounting
method that requires the Fund to amortize premiums and accrete all
discounts. Without the adoption of this change, for the year ended October
31, 2002, net investment income, net realized and unrealized loss and the
ratio of net investment income to average net assets would have been $0.52,
$0.18 and 5.04%, respectively. Per share, ratios and supplemental data for
the periods prior to November 1, 2001 have not been restated to reflect
this change in presentation.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
27 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
TRAVELERS SERIES
FUND INC.
DIRECTORS INVESTMENT MANAGERS
A.E. Cohen Smith Barney Fund
Robert A. Frankel Management LLC
Michael E. Gellert Travelers Investment Adviser, Inc.
R. Jay Gerken,
Chairman CUSTODIAN
Rainer Greeven State Street Bank and
Susan M. Heilbron Trust Company
OFFICERS ANNUITY
R. Jay Gerken ADMINISTRATION
President and Travelers Annuity Investor Services
Chief Executive Officer 5 State House Square
1 Tower Square
Lewis E. Daidone Hartford, Connecticut 06183
Senior Vice President
and Chief Administrative
Officer
Richard L. Peteka
Chief Financial Officer
and Treasurer
Jeffrey J. Russell
Vice President and
Investment Officer
Peter J. Wilby, CFA
Vice President and
Investment Officer
Kaprel Ozsolak
Controller
Christina T. Sydor
Secretary
Travelers Series Fund Inc.
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- Smith Barney International All Cap Growth and
Salomon Brothers Strategic Total Return Bond Portfolios. It is not authorized
for distribution to prospective investors unless accompanied or preceded by a
current Prospectus for the Funds, which contains information concerning the
Funds' investment policies and expenses as well as other pertinent
information.
TRAVELERS SERIES FUND INC.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
IN0802 6/03
03-4964
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal
financial officer have concluded that the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the
Investment Company Act of 1940, as amended) are effective based on
their evaluation of the disclosure controls and procedures as of a
date within 90 days of the filing date of this document.
(b) In the last 90 days, there have been no significant changes in the
Registrant's internal controls or in other factors that could
significantly affect these controls.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b) Attached hereto.
Exhibit 99.CERT Certifications pursuant to section 302 of the
Sarbanes-Oxley Act of 2002
Exhibit 99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
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, there unto duly authorized.
Travelers Series Fund Inc.
By: /s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer of
Travelers Series Fund Inc.
Date: June 27, 2003
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/ R. Jay Gerken
(R. Jay Gerken)
Chief Executive Officer of
Travelers Series Fund Inc.
Date: June 27, 2003
By: /s/ RICHARD PETEKA
Chief Financial Officer of
Travelers Series Fund Inc.
Date: June 27, 2003