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 LARGE CAP VALUE PORTFOLIO
ALLIANCE GROWTH PORTFOLIO
VAN KAMPEN ENTERPRISE PORTFOLIO
--------------------------------------------------
SEMI-ANNUAL REPORT | APRIL 30, 2003
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NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
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WHAT'S INSIDE
Letter From the Chairman.................................................... 1
Schedules of Investments.................................................... 2
Statements of Assets and Liabilities........................................ 13
Statements of Operations.................................................... 14
Statements of Changes in Net Assets......................................... 15
Notes to Financial Statements............................................... 18
Financial Highlights........................................................ 24
LETTER FROM THE CHAIRMAN
[PHOTO]
R. JAY GERKEN
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 in 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 LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.0%
Banks -- 19.0%
30,000 Bank of America Corp. $ 2,221,500
120,000 Comercia, Inc. 5,221,200
115,025 HSBC Holdings PLC, Sponsored ADR 6,290,717
84,127 Mellon Financial Corp. 2,225,159
200,000 State Street Corp. 7,006,000
145,000 SunTrust Banks, Inc. 8,296,900
175,000 U.S. Bancorp 3,876,250
240,000 Washington Mutual, Inc. 9,480,000
235,500 Wells Fargo & Co. 11,365,230
180,000 Zions Bancorporation 8,868,600
- --------------------------------------------------------------------------------
64,851,556
- --------------------------------------------------------------------------------
Capital Goods -- 9.2%
71,300 Danaher Corp. 4,918,274
80,100 Emerson Electric Co. 4,061,070
330,000 General Electric Co. 9,718,500
180,000 Honeywell International Inc. 4,248,000
74,400 Illinois Tool Works Inc. 4,760,112
80,000 Masco Corp. 1,685,600
33,000 United Technologies Corp. 2,039,730
- --------------------------------------------------------------------------------
31,431,286
- --------------------------------------------------------------------------------
Consumer Cyclicals -- 7.9%
520,000 Cendant Corp.* 7,425,600
50,000 Federated Department Stores, Inc. 1,531,000
200,000 Ford Motor Co. 2,060,000
153,000 The Interpublic Group of Cos., Inc.. 1,744,200
239,100 J.C. Penney Co., Inc. 4,079,046
106,000 The McGraw-Hill Cos., Inc. 6,189,340
60,000 Omnicom Group Inc. 3,714,000
- --------------------------------------------------------------------------------
26,743,186
- --------------------------------------------------------------------------------
Consumer Staples -- 4.8%
185,000 Altria Group, Inc. 5,690,600
96,000 Kimberly-Clark Corp. 4,777,920
185,000 Kraft Foods Inc. 5,716,500
- --------------------------------------------------------------------------------
16,185,020
- --------------------------------------------------------------------------------
Energy -- 7.7%
165,000 ChevronTexaco Corp. 10,363,650
450,000 Exxon Mobil Corp. 15,840,000
- --------------------------------------------------------------------------------
26,203,650
- --------------------------------------------------------------------------------
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 LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Financial Services - Other -- 9.6%
250,000 American Express Co. $ 9,465,000
180,000 Capital One Financial Corp. 7,536,600
113,000 Fannie Mae 8,180,070
130,000 Freddie Mac 7,527,000
- --------------------------------------------------------------------------------
32,708,670
- --------------------------------------------------------------------------------
Healthcare -- 4.1%
39,933 Baxter International Inc. 918,459
261,400 Bristol-Myers Squibb Co. 6,676,156
86,500 CIGNA Corp. 4,523,950
30,000 Merck & Co. Inc. 1,745,400
- --------------------------------------------------------------------------------
13,863,965
- --------------------------------------------------------------------------------
Insurance -- 4.2%
76,000 American International Group, Inc. 4,404,200
130,000 The Chubb Corp. 6,875,700
76,200 The Hartford Financial Services Group, Inc. 3,105,912
- --------------------------------------------------------------------------------
14,385,812
- --------------------------------------------------------------------------------
Investment Banks and Brokerage Houses -- 8.1%
491,100 J.P. Morgan Chase & Co. 14,413,785
145,000 Merrill Lynch & Co., Inc. 5,952,250
159,300 Morgan Stanley 7,128,675
- --------------------------------------------------------------------------------
27,494,710
- --------------------------------------------------------------------------------
Raw and Intermediate Materials -- 6.3%
221,700 Alcoa Inc. 5,083,581
315,000 The Dow Chemical Co. 10,281,600
148,462 Nucor Corp. 6,064,673
- --------------------------------------------------------------------------------
21,429,854
- --------------------------------------------------------------------------------
Technology -- 5.6%
50,000 Automatic Data Processing, Inc. 1,681,500
444,076 Comverse Technology, Inc.* 5,804,073
192,100 Electronic Data Systems Corp. 3,486,615
95,000 International Business Machines Corp. 8,065,500
- --------------------------------------------------------------------------------
19,037,688
- --------------------------------------------------------------------------------
Telecommunications -- 5.2%
68,000 ALLTEL Corp. 3,186,480
400,000 SBC Communications Inc. 9,344,000
290,000 Sprint Corp. 3,337,900
50,000 Verizon Communications Inc. 1,869,000
- --------------------------------------------------------------------------------
17,737,380
- --------------------------------------------------------------------------------
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 LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------------------------------------
Transportation -- 2.0%
245,000 Burlington Northern Santa Fe Corp. $ 6,899,200
- ---------------------------------------------------------------------------------------------
Utilities -- 4.3%
89,000 American Electric Power Co., Inc. 2,347,820
45,000 Consolidated Edison, Inc. 1,749,150
187,000 Duke Energy Corp. 3,289,330
40,000 FPL Group, Inc. 2,434,800
165,000 The Southern Co. 4,799,850
- ---------------------------------------------------------------------------------------------
14,620,950
- ---------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $378,937,643) 333,592,927
- ---------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.0%
$6,788,000 Merrill Lynch & Co., Inc., 1.250% due 5/1/03; Proceeds at maturity --
$6,788,236; (Fully collateralized by various U.S. government agency
obligations, 0.000% to 4.875% due 5/9/03 to 11/15/07;
Market value -- $6,923,779) (Cost -- $6,788,000) 6,788,000
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $385,725,643**) $340,380,927
- ---------------------------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
4 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------
COMMON STOCK -- 98.9%
Biotechnology and Drugs -- 12.1%
118,400 AmerisourceBergen Corp. $ 6,849,440
296,900 Cardinal Health, Inc. 16,412,632
307,600 Express Scripts, Inc., Class A Shares*+ 18,136,096
253,600 Forest Laboratories, Inc.* 13,116,192
10,600 Gilead Sciences, Inc.* 489,084
160,700 Pfizer Inc. 4,941,525
- -----------------------------------------------------------------------
59,944,969
- -----------------------------------------------------------------------
Broadcasting and Cable -- 7.5%
661,000 Comcast Corp., Class A Special Shares* 19,869,660
106,900 Cox Communications Inc., Class A Shares* 3,538,390
81,800 EchoStar Communications Corp., Class A Shares*+ 2,450,728
227,023 Viacom Inc., Class B Shares* 9,855,068
46,400 Westwood One, Inc.* 1,619,360
- -----------------------------------------------------------------------
37,333,206
- -----------------------------------------------------------------------
Building/Construction -- 5.9%
96,700 Centex Corp. 6,384,134
215,550 D.R. Horton Inc.+ 5,108,535
228,400 Jacobs Engineering Group, Inc.* 9,398,660
85,400 Lennar Corp., Class A Shares+ 4,632,096
8,540 Lennar Corp., Class B Shares+ 457,317
9,400 NVR Inc.*+ 3,362,850
- -----------------------------------------------------------------------
29,343,592
- -----------------------------------------------------------------------
Business Services -- 1.6%
196,700 Iron Mountain, Inc.*+ 7,838,495
- -----------------------------------------------------------------------
Capital Goods -- 1.6%
109,200 American Standard Cos. Inc.* 7,773,948
- -----------------------------------------------------------------------
Consumer Products and Services -- 2.0%
328,990 Newell Rubbermaid Inc. 10,027,615
- -----------------------------------------------------------------------
Education -- 3.9%
18,400 Apollo Group, Inc., Class A Shares* 997,262
286,100 Career Education Corp.* 17,203,193
15,100 Strayer Education, Inc.+ 982,104
- -----------------------------------------------------------------------
19,182,559
- -----------------------------------------------------------------------
Energy -- 1.9%
162,960 Apache Corp. 9,329,460
- -----------------------------------------------------------------------
Financial Services -- 11.0%
331,200 Bank One Corp. 11,939,760
349,200 Legg Mason Inc.+ 18,961,560
See Notes to Financial Statements.
5 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------
Financial Services -- 11.0% (continued)
705,493 MBNA Corp. $ 13,333,818
24,400 Merrill Lynch & Co., Inc. 1,001,620
125,700 Morgan Stanley 5,625,075
31,750 SLM Corp. 3,556,000
- ----------------------------------------------------------------------------
54,417,833
- ----------------------------------------------------------------------------
Healthcare -- 8.9%
105,400 Boston Scientific Corp.* 4,537,470
994,700 Health Management Associates, Inc., Class A Shares 16,969,582
134,600 Patterson Dental Co.*+ 5,406,882
79,800 St. Jude Medical, Inc.* 4,186,308
191,300 Stryker Corp. 12,819,013
- ----------------------------------------------------------------------------
43,919,255
- ----------------------------------------------------------------------------
Insurance -- 12.2%
194,400 AMBAC Financial Group Inc. 11,343,240
424,897 American International Group, Inc. 24,622,781
32,500 Everest Re Group, Ltd. 2,263,625
165,900 WellPoint Health Networks Inc.* 12,598,446
316,600 Willis Group Holdings Ltd.*+ 9,874,754
- ----------------------------------------------------------------------------
60,702,846
- ----------------------------------------------------------------------------
Leisure -- 4.0%
444,200 Harley-Davidson, Inc. 19,740,248
- ----------------------------------------------------------------------------
Retail -- 8.3%
54,500 Bed Bath & Beyond Inc.* 2,153,295
167,900 CDW Computer Centers Inc.*+ 7,159,256
162,100 eBay Inc.* 15,038,017
292,000 Kohl's Corp.* 16,585,600
- ----------------------------------------------------------------------------
40,936,168
- ----------------------------------------------------------------------------
Technology -- 17.2%
74,950 Affiliated Computer Services, Inc., Class A Shares*+ 3,575,115
248,400 Cisco Systems, Inc.* 3,735,936
179,100 Danaher Corp. 12,354,318
370,310 Dell Computer Corp.* 10,705,662
50,160 Flextronics International Ltd.* 438,900
847,700 Juniper Networks, Inc.*+ 8,663,494
123,050 L-3 Communications Holdings, Inc.*+ 5,463,420
148,400 Marvell Technology Group Ltd.*+ 3,424,924
104,100 Maxim Integrated Products, Inc. 4,090,089
77,500 Mercury Interactive Corp.*+ 2,630,350
549,000 Microsoft Corp.* 14,037,930
See Notes to Financial Statements.
6 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------------------
Technology -- 17.2% (continued)
116,300 Symantec Corp.* $ 5,111,385
491,500 VERITAS Software Corp.* 10,817,915
- ----------------------------------------------------------------------------------------
85,049,438
- ----------------------------------------------------------------------------------------
Transportation -- 0.8%
258,000 Southwest Airlines Co.+ 4,117,680
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $479,949,318) 489,657,312
- ----------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES -- 1.1%
$5,500,000 Federal National Mortgage Association, Discount Notes due 5/1/03
(Cost -- $5,500,000) 5,500,000
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $485,449,318**) $495,157,312
- ----------------------------------------------------------------------------------------
* Non-income producing security.
+ All or a portion of this security is on loan (See Note 5).
** Aggregate cost for Federal income tax purposes is substantially the same.
LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
$53,808,884 State Street Navigator Securities Lending Trust Prime Portfolio
(Cost -- $53,808,884) $53,808,884
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
7 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------------------
COMMON STOCK -- 95.5%
Automotive -- 0.5%
10,600 Harley-Davidson, Inc. $ 471,064
- -------------------------------------------------------------------------
Banking -- 3.3%
10,700 AmSouth Bancorp. 225,235
13,500 Bank of America Corp. 999,675
8,400 Compass Bancshares, Inc. 283,248
8,500 FleetBoston Financial Corp. 225,420
13,000 National City Corp. 389,480
9,500 Regions Financial Corp. 320,245
11,200 U.S. Bancorp 248,080
8,600 Wachovia Corp. 328,606
- -------------------------------------------------------------------------
3,019,989
- -------------------------------------------------------------------------
Biotechnology -- 7.0%
6,200 Allergan, Inc. 435,550
39,600 Amgen Inc.* 2,427,876
13,250 Barr Laboratories, Inc.* 736,700
6,000 Biogen, Inc.* 227,940
11,000 Biovail Corp.*+ 397,650
24,300 Gilead Sciences, Inc.* 1,121,202
19,100 MedImmune, Inc.* 673,657
16,200 Mylan Laboratories Inc. 457,974
- -------------------------------------------------------------------------
6,478,549
- -------------------------------------------------------------------------
Business Services -- 4.6%
26,200 Affiliated Computer Services, Inc., Class A Shares* 1,249,740
6,800 The Dun & Bradstreet Corp.* 257,040
16,000 Ecolab Inc. 817,440
11,400 Equifax Inc. 264,366
27,400 First Data Corp. 1,074,902
8,200 Fiserv, Inc.* 241,408
9,300 Pitney Bowes Inc. 326,523
- -------------------------------------------------------------------------
4,231,419
- -------------------------------------------------------------------------
Consumer Products and Services -- 4.0%
10,200 Avon Products, Inc. 593,334
5,700 The Clorox Co. 257,754
15,700 Johnson & Johnson 1,594,988
13,600 The Procter & Gamble Co. 1,221,960
- -------------------------------------------------------------------------
3,668,036
- -------------------------------------------------------------------------
Education -- 0.2%
4,300 Apollo Group, Inc., Class A Shares* 233,056
- -------------------------------------------------------------------------
Energy -- 3.8%
14,885 Apache Corp. 852,166
18,800 BJ Services Co.* 686,388
See Notes to Financial Statements.
8 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
Energy -- 3.8% (continued)
10,138 ConocoPhillips $ 509,941
12,200 National Oilwell, Inc.* 256,078
14,300 Smith International, Inc.* 508,508
18,300 Valero Energy Corp. 672,525
- --------------------------------------------------------------------------------
3,485,606
- --------------------------------------------------------------------------------
Financial Services -- 6.9%
14,000 American Express Co. 530,040
5,900 The Bear Stearns Cos. Inc. 394,356
6,000 Countrywide Credit Industries, Inc. 405,600
17,700 Fannie Mae 1,281,303
8,900 Federated Investors, Inc., Class B Shares 242,881
9,500 Freddie Mac 550,050
21,350 J.P. Morgan Chase & Co. 626,622
6,000 Lehman Brothers Holdings Inc. 377,820
8,000 Merrill Lynch & Co., Inc. 328,400
5,400 SLM Corp. 604,800
12,600 Washington Mutual, Inc. 497,700
10,300 Wells Fargo & Co. 497,078
- --------------------------------------------------------------------------------
6,336,650
- --------------------------------------------------------------------------------
Food and Beverage -- 3.2%
22,800 Anheuser-Busch Cos., Inc. 1,137,264
24,500 Kellogg Co. 802,130
23,300 PepsiCo, Inc. 1,008,424
- --------------------------------------------------------------------------------
2,947,818
- --------------------------------------------------------------------------------
Healthcare -- 1.3%
15,700 Alcon, Inc.* 691,585
25,100 Caremark Rx, Inc.* 499,741
- --------------------------------------------------------------------------------
1,191,326
- --------------------------------------------------------------------------------
Hotel/Casino/Gaming -- 0.8%
8,600 International Game Technology* 742,180
- --------------------------------------------------------------------------------
Insurance -- 5.1%
9,200 Aetna, Inc. 458,160
17,125 American International Group, Inc. 992,394
13,300 Anthem, Inc.* 912,912
7,100 Marsh & McLennan Cos., Inc. 338,528
14,000 MetLife, Inc. 402,220
13,000 SAFECO Corp. 500,630
6,400 UnitedHealth Group, Inc. 589,632
6,200 WellPoint Health Networks, Inc.* 470,828
- --------------------------------------------------------------------------------
4,665,304
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
9 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------------------
Machinery -- 1.0%
5,100 Eaton Corp. $ 418,557
11,900 Ingersoll-Rand Co., Class A Shares 524,552
- ------------------------------------------------------------------------
943,109
- ------------------------------------------------------------------------
Medical Equipment and Supplies -- 2.7%
6,200 Guidant Corp.* 241,738
27,100 Medtronic, Inc. 1,293,754
9,200 St. Jude Medical, Inc.* 482,632
9,600 Zimmer Holdings, Inc.* 450,240
- ------------------------------------------------------------------------
2,468,364
- ------------------------------------------------------------------------
Multi-Industry -- 3.6%
3,600 3M Co. 453,744
96,600 General Electric Co. 2,844,870
- ------------------------------------------------------------------------
3,298,614
- ------------------------------------------------------------------------
Multi-Media -- 1.3%
8,000 Clear Channel Communications Inc.* 312,880
19,700 Viacom Inc., Class B Shares* 855,177
- ------------------------------------------------------------------------
1,168,057
- ------------------------------------------------------------------------
Pharmaceuticals -- 7.0%
11,600 Abbott Laboratories 471,308
19,000 Bristol-Myers Squibb Co. 485,260
9,400 Forest Laboratories, Inc.* 486,168
15,900 Merck & Co., Inc. 925,062
74,350 Pfizer Inc. 2,286,263
14,500 Teva Pharmaceutical Industries Ltd., Sponsored ADR 677,150
25,800 Wyeth 1,123,074
- ------------------------------------------------------------------------
6,454,285
- ------------------------------------------------------------------------
Publishing -- 2.3%
7,200 The E.W. Scripps Co. 570,600
11,200 Gannett Co., Inc. 848,064
14,700 The New York Times Co., Class A Shares 681,786
- ------------------------------------------------------------------------
2,100,450
- ------------------------------------------------------------------------
Retail -- 11.3%
11,500 Abercrombie & Fitch Co., Class A Shares* 378,120
8,100 AutoZone, Inc.* 654,561
16,800 Bed Bath & Beyond Inc.* 663,768
20,600 Best Buy Co., Inc.* 712,348
14,500 Brinker International, Inc.* 460,375
11,155 CDW Computer Centers, Inc.* 475,649
15,800 Dollar General Corp. 232,824
41,700 The Gap, Inc. 693,471
See Notes to Financial Statements.
10 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------
Retail -- 11.3% (continued)
10,100 The Home Depot, Inc. $ 284,113
12,100 Lowe's Cos., Inc. 531,069
11,200 Reebok International Ltd.* 347,872
42,100 Staples, Inc.* 801,584
17,800 Starbucks Corp.* 418,122
19,500 The TJX Cos., Inc. 375,375
59,900 Wal-Mart Stores, Inc. 3,373,568
- ------------------------------------------------------------------------------
10,402,819
- ------------------------------------------------------------------------------
Semiconductors -- 4.1%
19,200 Analog Devices, Inc.* 635,904
53,500 Intel Corp. 984,400
7,600 L-3 Communications Holdings, Inc.*+ 337,440
27,000 Lam Research Corp.*+ 392,310
8,000 QLogic Corp.* 351,920
38,700 Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR 323,919
23,600 Texas Instruments Inc. 436,364
12,700 Xilinx, Inc.* 343,789
- ------------------------------------------------------------------------------
3,806,046
- ------------------------------------------------------------------------------
Technology -- 19.0%
10,800 Adobe Systems Inc. 373,248
19,800 Amdocs Ltd.* 349,668
65,600 AOL Time Warner Inc.* 897,408
23,400 Autodesk, Inc. 364,104
20,200 Celestica Inc.* 233,512
151,200 Cisco Systems, Inc.* 2,274,048
9,400 Danaher Corp. 648,412
63,700 Dell Computer Corp.* 1,841,567
8,500 Electronic Arts Inc.* 503,795
29,100 EMC Corp.* 264,519
31,400 Flextronics International Ltd.* 274,750
71,100 Hewlett-Packard Co. 1,158,930
15,100 International Business Machines Corp. 1,281,990
8,500 Lexmark International, Inc. 633,335
142,500 Microsoft Corp.* 3,643,725
44,300 Oracle Corp.* 526,284
18,000 PeopleSoft, Inc.* 270,540
12,300 SAP AG, Sponsored ADR 313,773
12,600 Symantec Corp.* 553,770
18,800 VERITAS Software Corp.* 413,788
26,800 Yahoo! Inc.* 664,104
- ------------------------------------------------------------------------------
17,485,270
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
11 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------------------------------
Telecommunications -- 1.0%
92,900 AT&T Wireless Services Inc.* $ 600,134
18,600 Nokia Corp., Sponsored ADR 308,202
- ---------------------------------------------------------------------------------------
908,336
- ---------------------------------------------------------------------------------------
Textiles/Apparel -- 1.2%
16,300 Coach, Inc.* 709,213
13,600 Jones Apparel Group, Inc.* 387,872
- ---------------------------------------------------------------------------------------
1,097,085
- ---------------------------------------------------------------------------------------
Transportation -- 0.3%
4,900 United Parcel Service, Inc., Class B Shares 304,920
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $86,043,799) 87,908,352
- ---------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES -- 4.5%
$4,162,000 Federal National Mortgage Association, Discount Notes due 5/1/03
(Cost -- $4,162,000) 4,162,000
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $90,205,799**) $92,070,352
- ---------------------------------------------------------------------------------------
* Non-income producing security.
+ All or a portion of this security is on loan (See Note 5).
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
$836,232 State Street Navigator Securities Lending Trust Prime Portfolio
(Cost -- $836,232) $836,232
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
12 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost -- $385,725,643,
$485,449,318 and $90,205,799, respectively) $340,380,927 $ 495,157,312 $ 92,070,352
Loaned securities collateral, at value (Cost --
$53,808,884 and $836,232, respectively) (Note
5) -- 53,808,884 836,232
Cash 368 10,821 522
Receivable for securities sold -- 3,691,060 1,874,595
Receivable for Fund shares sold -- 524,572 --
Dividends and interest receivable 497,560 16,296 32,946
Other receivables 3,802 45,133 --
- --------------------------------------------------------------------------------------------
Total Assets 340,882,657 553,254,078 94,814,647
- --------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities on loan (Note 5) -- 53,808,884 836,232
Payable for securities purchased -- 1,551,407 2,061,764
Payable for Fund shares purchased 354,259 42,966 3,705
Management fees payable 174,210 302,968 51,834
Accrued expenses 41,495 63,000 16,874
- --------------------------------------------------------------------------------------------
Total Liabilities 569,964 55,769,225 2,970,409
- --------------------------------------------------------------------------------------------
Total Net Assets $340,312,693 $ 497,484,853 $ 91,844,238
- --------------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 248 $ 381 $ 96
Capital paid in excess of par value 432,490,155 838,627,565 172,238,298
Undistributed (overdistributed) net investment
income 2,512,847 (675,076) 74,778
Accumulated net realized loss from security
transactions (49,345,841) (350,176,011) (82,333,487)
Net unrealized appreciation (depreciation) of
investments (45,344,716) 9,707,994 1,864,553
- --------------------------------------------------------------------------------------------
Total Net Assets $340,312,693 $ 497,484,853 $ 91,844,238
- --------------------------------------------------------------------------------------------
Shares Outstanding 24,777,105 38,085,231 9,580,318
- --------------------------------------------------------------------------------------------
Net Asset Value $13.73 $13.06 $9.59
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
13 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended April 30, 2003
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 4,528,278 $ 916,830 $ 448,378
Interest 147,165 430,284 38,760
Less: Foreign withholding tax -- -- (1,574)
- ----------------------------------------------------------------------------------
Total Investment Income 4,675,443 1,347,114 485,564
- ----------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,088,693 1,943,054 324,767
Custody 19,910 19,571 14,132
Audit and legal 19,005 16,915 15,680
Shareholder communications 18,100 20,889 5,399
Directors' fees 7,602 7,467 2,434
Shareholder servicing fees 2,715 2,660 2,619
Other 3,982 7,656 2,640
- ----------------------------------------------------------------------------------
Total Expenses 1,160,007 2,018,212 367,671
- ----------------------------------------------------------------------------------
Net Investment Income (Loss) 3,515,436 (671,098) 117,893
- ----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTE 3):
Realized Loss From Security Transactions
(excluding short-term securities):
Proceeds from sales 43,576,502 106,099,763 54,710,295
Cost of securities sold 51,520,499 146,817,913 64,108,387
- ----------------------------------------------------------------------------------
Net Realized Loss (7,943,997) (40,718,150) (9,398,092)
- ----------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) of Investments:
Beginning of period (70,083,246) (49,337,237) (9,411,558)
End of period (45,344,716) 9,707,994 1,864,553
- ----------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) 24,738,530 59,045,231 11,276,111
- ----------------------------------------------------------------------------------
Net Gain on Investments 16,794,533 18,327,081 1,878,019
- ----------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 20,309,969 $ 17,655,983 $ 1,995,912
- ----------------------------------------------------------------------------------
See Notes to Financial Statements.
14 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 Large Cap Value Portfolio 2003 2002
- ---------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 3,515,436 $ 7,406,464
Net realized loss (7,943,997) (39,737,030)
(Increase) decrease in net unrealized depreciation 24,738,530 (76,098,584)
- ---------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 20,309,969 (108,429,150)
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (8,408,520) (7,859,263)
- ---------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (8,408,520) (7,859,263)
- ---------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 2,169,985 35,752,411
Net asset value of shares issued for reinvestment
of dividends 8,408,520 7,859,263
Cost of shares reacquired (28,573,257) (84,617,623)
- ---------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (17,994,752) (41,005,949)
- ---------------------------------------------------------------------------------
Decrease in Net Assets (6,093,303) (157,294,362)
NET ASSETS:
Beginning of period 346,405,996 503,700,358
- ---------------------------------------------------------------------------------
End of period* $340,312,693 $ 346,405,996
- ---------------------------------------------------------------------------------
* Includes undistributed net investment income of: $2,512,847 $7,405,931
- ---------------------------------------------------------------------------------
See Notes to Financial Statements.
15 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
Alliance Growth Portfolio 2003 2002
- -------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ (671,098) $ 1,328,967
Net realized loss (40,718,150) (297,161,941)
Increase in net unrealized appreciation 59,045,231 111,121,539
- -------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 17,655,983 (184,711,435)
- -------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (650,759) (2,925,061)
- -------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (650,759) (2,925,061)
- -------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 3,348,542 10,626,631
Net asset value of shares issued for reinvestment of dividends 650,759 2,925,061
Cost of shares reacquired (39,236,661) (154,719,589)
- -------------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (35,237,360) (141,167,897)
- -------------------------------------------------------------------------------------------------
Decrease in Net Assets (18,232,136) (328,804,393)
NET ASSETS:
Beginning of period 515,716,989 844,521,382
- -------------------------------------------------------------------------------------------------
End of period* $497,484,853 $ 515,716,989
- -------------------------------------------------------------------------------------------------
* Includes undistributed (overdistributed) net investment income of: $(675,076) $646,781
- -------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
16 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
Van Kampen Enterprise Portfolio 2003 2002
- ---------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 117,893 $ 429,129
Net realized loss (9,398,092) (36,235,983)
Increase in net unrealized appreciation 11,276,111 8,333,675
- --------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 1,995,912 (27,473,179)
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (471,638) (417,888)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (471,638) (417,888)
- --------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 255,039 1,052,862
Net asset value of shares issued for reinvestment of dividends 471,638 417,888
Cost of shares reacquired (10,586,689) (38,261,601)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (9,860,012) (36,790,851)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets (8,335,738) (64,681,918)
NET ASSETS:
Beginning of period 100,179,976 164,861,894
- --------------------------------------------------------------------------------------------
End of period* $ 91,844,238 $100,179,976
- --------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $74,778 $428,523
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
17 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The Smith Barney Large Cap Value Portfolio, Alliance Growth Portfolio and Van
Kampen Enterprise 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 an open-end
management investment company and consists of these Funds and eleven other
separate investment funds: AIM Capital Appreciation, Smith Barney International
All Cap Growth, Travelers Managed Income, Putnam Diversified Income, Salomon
Brothers Total Return Strategic Bond, Smith Barney High Income, MFS Total
Return, Smith Barney Money Market, Smith Barney Large Capitalization Growth,
Smith Barney Mid Cap Core and Smith Barney Aggressive Growth Portfolios. Shares
of the Funds 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 on such markets;
securities for which no sales price was reported and U.S. government agencies
and obligations are valued at the mean between bid and asked prices; securities
listed on the NASDAQ National Market System for which market quotations are
available are valued at the official closing price or, if there is no official
closing price on that day, at the last sale price; (c) securities for which
market quotations are not available will be valued in good faith at fair value
by or under the direction of the Board of Directors; (d) securities maturing
within 60 days are valued at cost plus accreted discount, or minus amortized
premium, which approximates value; (e) 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; (f ) interest income,
adjusted for amortization of premium and accretion of discount, is recorded on
an accrual basis; (g) dividends and distributions to shareholders are recorded
on the ex-dividend date; the Funds distribute dividends and capital gains, if
any, annually; (h) gains or losses on the sale of securities are calculated by
using the specific identification method; (i) the accounting records of the
Funds are maintained in U.S. dollars. All assets and
18 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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
bank; (j) 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; (k) the Funds
intend to comply with the requirements of the Internal Revenue Code of 1986, as
amended, pertaining to regulated investment companies and to make distributions
of taxable income sufficient to relieve it from substantially all Federal
income and excise taxes; and (l) 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.
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 the investment manager of the Smith
Barney Large Cap Value Portfolio ("SBLCV"). In addition, SBLCV pays SBFM a
management fee calculated at an annual rate of 0.65% of the average daily net
assets of the Fund. Travelers Investment Adviser, Inc. ("TIA"), an affiliate of
SBFM, acts as the investment manager of the Alliance Growth Portfolio ("AGP")
and the Van Kampen Enterprise Portfolio ("VKEP"). AGP and VKEP pay TIA a
management fee calculated at an annual rate of 0.80% and 0.70%, respectively,
of the average daily net assets of each Fund. These fees are calculated daily
and paid monthly.
TIA has entered into sub-advisory agreements with Alliance Capital Management
L.P. ("Alliance Capital") and Van Kampen Asset Management, Inc. ("VKAM").
Pursuant to each sub-advisory agreement, Alliance Capital and VKAM are
responsible for the day-to-day portfolio operations and investment decisions
and are compensated by TIA for such services at an annual rate of
19 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
0.375% and 0.325% of the average daily net assets of AGP and VKEP, respectively.
TIA has entered into a sub-administrative services agreement with SBFM. TIA
pays SBFM, as sub-administrator, a fee calculated at an annual rate of 0.10% of
the average daily net assets of AGP and VKEP.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent. 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.
For the six months ended April 30, 2003, Citigroup Global Markets Inc. ("CGM"),
formerly known as Salomon Smith Barney Inc., another indirect wholly-owned
subsidiary of Citigroup, and its affiliates received brokerage commissions of
$27,029 and $13,038 from AGP and VKEP, respectively.
Most of the officers and one Director of the Series are employees of Citigroup
or its affiliates.
3. Investments
During 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:
SBLCV AGP VKEP
-------------------------------------------------------------------------------
Purchases $26,477,863 $ 72,138,297 $44,215,788
-------------------------------------------------------------------------------
Sales 43,576,502 106,099,763 54,710,295
-------------------------------------------------------------------------------
20 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At April 30, 2003, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
SBLCV AGP VKEP
- -----------------------------------------------------------------------------------
Gross unrealized appreciation $ 19,667,536 $ 40,868,551 $ 6,495,304
Gross unrealized depreciation (65,012,252) (31,160,557) (4,630,751)
- -----------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $(45,344,716) $ 9,707,994 $ 1,864,553
- -----------------------------------------------------------------------------------
4. 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.
At April 30, 2003, AGP and VKEP did not have any repurchase agreements
outstanding.
5. Lending of Portfolio Securities
SBLCV, AGP and VKEP 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 or high quality money market
instruments that are maintained at all times in an amount at least equal to the
current market value of the loaned securities, plus a margin 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 losses in the investment of amounts received as collateral.
At April 30, 2003, AGP and VKEP had loaned common stocks having a market value
of $51,670,155 and $786,938 and received cash collateral amounting to
$53,738,794 and $809,405, respectively, which was invested in the State Street
Navigator Securities Lending Trust Prime Portfolio.
21 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended April 30, 2003, income earned from securities lending
by AGP and VKEP was $33,679 and $1,729, respectively.
At April 30, 2003, SBLCV did not have any securities on loan.
6. Capital Shares
At April 30, 2003, the Series had six billion shares 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 other share of the same Fund
and has an equal entitlement to any dividends and distributions made by
the Fund.
Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended
April 30, 2003 October 31, 2002
------------------------------------------------------------------------
Smith Barney Large Cap Value Portfolio
Shares sold 164,325 1,988,862
Shares issued on reinvestment 639,431 597,662
Shares reacquired (2,188,750) (5,253,318)
------------------------------------------------------------------------
Net Decrease (1,384,994) (2,666,794)
------------------------------------------------------------------------
Alliance Growth Portfolio
Shares sold 275,157 673,389
Shares issued on reinvestment 53,826 232,148
Shares reacquired (3,190,450) (10,631,856)
------------------------------------------------------------------------
Net Decrease (2,861,467) (9,726,319)
------------------------------------------------------------------------
Van Kampen Enterprise Portfolio
Shares sold 27,422 86,645
Shares issued on reinvestment 51,942 44,790
Shares reacquired (1,153,737) (3,442,151)
------------------------------------------------------------------------
Net Decrease (1,074,373) (3,310,716)
------------------------------------------------------------------------
22 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
Large Cap Value Portfolio 2003/(1)/ 2002 2001 2000 1999 1998/(2)/
- ------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $13.24 $17.47 $20.74 $19.83 $18.94 $17.90
- -----------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.15 0.32 0.26 0.30 0.27 0.31
Net realized and unrealized
gain (loss) 0.67 (4.24) (2.56) 1.34 1.38 1.47
- -----------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.82 (3.92) (2.30) 1.64 1.65 1.78
- -----------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.33) (0.31) (0.27) (0.26) (0.24) (0.21)
Net realized gains -- -- (0.70) (0.47) (0.52) (0.53)
- -----------------------------------------------------------------------------------------
Total Distributions (0.33) (0.31) (0.97) (0.73) (0.76) (0.74)
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period $13.73 $13.24 $17.47 $20.74 $19.83 $18.94
- -----------------------------------------------------------------------------------------
Total Return 6.29%++ (22.45)% (11.58)% 8.62% 8.52% 9.65%
- -----------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $340 $346 $504 $553 $544 $424
- -----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.69%+ 0.68% 0.67% 0.66% 0.67% 0.68%
Net investment income 2.10+ 1.59 1.42 1.45 1.35 1.59
- -----------------------------------------------------------------------------------------
Portfolio Turnover Rate 8% 68% 29% 23% 43% 36%
- -----------------------------------------------------------------------------------------
(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.
23 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:
Alliance Growth Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $12.59 $16.67 $28.63 $28.35 $22.14 $20.82
- ----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.02) 0.04 0.07 0.05 0.02 0.11
Net realized and unrealized gain (loss) 0.51 (4.05) (8.60) 2.66 7.79 2.69
- ----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.49 (4.01) (8.53) 2.71 7.81 2.80
- ----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.02) (0.07) (0.05) (0.03) (0.15) (0.04)
Net realized gains -- -- (3.38) (2.40) (1.45) (1.44)
- ----------------------------------------------------------------------------------------------
Total Distributions (0.02) (0.07) (3.43) (2.43) (1.60) (1.48)
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $13.06 $12.59 $16.67 $28.63 $28.35 $22.14
- ----------------------------------------------------------------------------------------------
Total Return 3.87%++ (24.05)% (32.05)% 9.27% 35.51% 12.92%
- ----------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $497 $516 $845 $1,370 $1,166 $775
- ----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.83%+ 0.83% 0.82% 0.81% 0.82% 0.82%
Net investment income (loss) (0.28)+ 0.19 0.31 0.17 0.14 0.59
- ----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 15% 100% 46% 47% 54% 40%
- ----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
24 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:
Van Kampen Enterprise Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $ 9.40 $11.81 $25.60 $25.52 $20.56 $19.89
- -----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) 0.01 0.05 0.03 (0.06) 0.00* 0.06
Net realized and unrealized gain (loss) 0.23 (2.42) (9.05) 3.87 5.42 1.83
- -----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.24 (2.37) (9.02) 3.81 5.42 1.89
- -----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.05) (0.04) (0.00)* (0.00)* (0.07) (0.05)
Net realized gains -- -- (4.77) (3.73) (0.39) (1.17)
- -----------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.04) (4.77) (3.73) (0.46) (1.22)
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.59 $ 9.40 $11.81 $25.60 $25.52 $20.56
- -----------------------------------------------------------------------------------------------
Total Return 2.53%++ (20.07)% (37.52)% 13.92% 26.48% 8.97%
- -----------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $92 $100 $165 $331 $313 $249
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.79%+ 0.76% 0.74% 0.72% 0.73% 0.73%
Net investment income (loss) 0.25+ 0.30 0.18 (0.22) 0.01 0.35
- -----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 49% 87% 107% 117% 120% 68%
- -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
* Amount represents less than $0.01 per share.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
25 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
TRAVELERS SERIES
FUND INC.
DIRECTORS INVESTMENT MANAGERS
A. E. Cohen Smith Barney Fund Management LLC
Robert A. Frankel Travelers Investment Adviser, Inc.
Michael E. Gellert
R. Jay Gerken, CUSTODIAN
Chairman State Street Bank and
Rainer Greeven Trust Company
Susan M. Heilbron
ANNUITY
OFFICERS ADMINISTRATION
R. Jay Gerken Travelers Annuity Investor Services
President and Chief 5 State House Square
Executive Officer 1 Tower Square
Hartford, Connecticut 06183
Lewis E. Daidone
Senior Vice President
and Chief Administrative
Officer
Richard L. Peteka
Chief Financial Officer
and Treasurer
Giri Bogavelli, CFA
Investment Officer
Steven Craige, CFA
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 Large Cap Value Portfolio,
Alliance Growth Portfolio and Van Kampen Enterprise Portfolio. 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
IN0801 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