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.
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TRAVELERS SERIES FUND INC.
MFS TOTAL RETURN PORTFOLIO
TRAVELERS MANAGED INCOME PORTFOLIO
SMITH BARNEY MONEY MARKET PORTFOLIO
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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 22
Statements of Operations............ 23
Statements of Changes in Net Assets. 24
Notes to Financial Statements....... 27
Financial Highlights................ 32
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 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 28, 2003
1 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------
COMMON STOCK -- 54.0%
Aerospace -- 0.0%
6,800 United Technologies Corp. $ 420,308
- --------------------------------------------------------------
Banks and Credit Companies -- 3.4%
100,199 Bank of America Corp. 7,419,736
68,400 Bank One Corp. 2,465,820
282,600 FleetBoston Financial Corp. 7,494,552
114,200 SouthTrust Corp. 3,067,526
95,900 SunTrust Banks, Inc. 5,487,398
11,446 U.S. Bancorp 253,529
104,100 Wachovia Corp. 3,977,661
- --------------------------------------------------------------
30,166,222
- --------------------------------------------------------------
Business Machines -- 0.5%
113,200 Hewlett-Packard Co. 1,845,160
36,200 International Business Machines Corp. 3,073,380
- --------------------------------------------------------------
4,918,540
- --------------------------------------------------------------
Cellular Phones -- 0.7%
144,540 Telephone and Data Systems Inc. 6,228,229
- --------------------------------------------------------------
Chemicals -- 0.9%
19,100 Air Products and Chemicals, Inc. 822,637
102,500 The Dow Chemical Co. 3,345,600
8,300 E.I. du Pont de Nemours & Co. 352,999
91,700 Lyondell Chemical Co. 1,334,235
46,100 PPG Industries, Inc. 2,236,311
- --------------------------------------------------------------
8,091,782
- --------------------------------------------------------------
Communication Services -- 4.5%
351,380 AT&T Corp. 5,991,029
1,336,465 AT&T Wireless Services Inc. (a) 8,633,564
312,800 BellSouth Corp. 7,973,272
180,324 SBC Communications Inc. 4,212,369
262,634 Verizon Communications Inc. 9,817,259
183,705 Vodafone Group PLC (b) 3,630,011
- --------------------------------------------------------------
40,257,504
- --------------------------------------------------------------
Communications Equipment -- 0.3%
94,700 Advanced Fibre Communications, Inc. (a) 1,448,910
198,900 Motorola, Inc. 1,573,299
- --------------------------------------------------------------
3,022,209
- --------------------------------------------------------------
See Notes to Financial Statements.
2 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------
Computer Software -- 1.2%
249,200 Microsoft Corp. (a) $ 6,372,044
138,870 Network Associates, Inc. (a) 1,587,284
226,800 Oracle Corp. (a) 2,694,384
- -----------------------------------------------------------
10,653,712
- -----------------------------------------------------------
Construction and Agricultural Machinery -- 0.5%
101,400 Deere & Co. 4,464,642
- -----------------------------------------------------------
Consumer Goods and Services -- 2.0%
44,500 Altria Group, Inc. 1,368,820
30,800 Automatic Data Processing, Inc. 1,035,804
42,500 Colgate-Palmolive Co. 2,429,725
46,200 Eastman Kodak Co. 1,381,842
89,400 The Gillette Co. 2,722,230
120,800 The Kimberly-Clark Corp. 6,012,216
38,300 Procter & Gamble Co. 3,441,255
- -----------------------------------------------------------
18,391,892
- -----------------------------------------------------------
Containers and Packaging -- 0.3%
274,300 Owens-Illinois, Inc. (a)(b) 2,438,527
- -----------------------------------------------------------
Entertainment -- 1.9%
91,300 AOL Time Warner Inc. (a) 1,248,984
285,308 Viacom Inc., Class B Shares (a) 12,385,220
164,800 The Walt Disney Co. 3,075,168
- -----------------------------------------------------------
16,709,372
- -----------------------------------------------------------
Financial Institutions -- 5.3%
28,900 Fannie Mae 2,092,071
78,400 Franklin Resources, Inc. 2,734,592
186,130 Freddie Mac 10,776,927
15,100 The Goldman Sachs Group, Inc. 1,146,090
109,900 J.P. Morgan Chase & Co. 3,225,565
438,200 Mellon Financial Corp. 11,590,390
229,000 Merrill Lynch & Co., Inc. 9,400,450
90,400 Morgan Stanley 4,045,400
83,000 T. Rowe Price Group Inc. 2,533,160
- -----------------------------------------------------------
47,544,645
- -----------------------------------------------------------
Food and Beverages -- 1.1%
253,397 Archer-Daniels-Midland Co. 2,807,639
138,900 Kellogg Co. 4,547,586
65,440 PepsiCo, Inc. 2,832,243
- -----------------------------------------------------------
10,187,468
- -----------------------------------------------------------
Healthcare -- 0.0%
5,700 Healthcare Realty Trust, Inc. 156,921
- -----------------------------------------------------------
See Notes to Financial Statements.
3 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------
Hotels -- 0.8%
303,900 Hilton Hotels Corp. $ 4,047,948
102,900 Starwood Hotels & Resorts Worldwide, Inc. 2,761,836
- ----------------------------------------------------------------
6,809,784
- ----------------------------------------------------------------
Insurance -- 2.4%
170,570 Allstate Corp. 6,445,840
87,100 The Chubb Corp. 4,606,719
157,140 The Hartford Financial Services Group, Inc. 6,405,026
103,330 MetLife, Inc. 2,968,671
45,020 Nationwide Financial Services, Inc. 1,267,313
- ----------------------------------------------------------------
21,693,569
- ----------------------------------------------------------------
Manufacturing -- 1.1%
179,900 General Electric Co. 5,298,055
17,200 Honeywell International Inc. 405,920
244,200 Tyco International Ltd. 3,809,520
- ----------------------------------------------------------------
9,513,495
- ----------------------------------------------------------------
Medical Products -- 0.4%
109,000 Baxter International Inc. 2,507,000
23,500 Johnson & Johnson 1,324,460
- ----------------------------------------------------------------
3,831,460
- ----------------------------------------------------------------
Metals and Minerals -- 1.3%
355,500 Alcoa Inc. 8,151,615
97,800 Phelps Dodge Corp. (a) 3,050,382
- ----------------------------------------------------------------
11,201,997
- ----------------------------------------------------------------
Oil Production -- 8.7%
16,099 Apache Corp. 921,668
81,500 BJ Services Co. (a) 2,975,565
236,106 BP PLC, Sponsored ADR 9,099,525
111,600 ConocoPhillips 5,613,480
68,960 Cooper Cameron Corp. (a) 3,300,426
192,210 Devon Energy Corp. 9,081,922
323,606 Exxon Mobil Corp. 11,390,931
223,000 GlobalSantaFe Corp. 4,718,680
320,970 Noble Corp. (a) 9,934,021
322,510 Occidental Petroleum Corp. 9,626,924
262,200 Schlumberger Ltd. 10,994,046
- ----------------------------------------------------------------
77,657,188
- ----------------------------------------------------------------
See Notes to Financial Statements.
4 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------
Paper Products -- 1.1%
77,800 Bowater Inc. $ 3,028,754
133,300 International Paper Co. 4,765,475
170,700 Smurfit-Stone Container Corp. (a) 2,401,749
- ---------------------------------------------------------------
10,195,978
- ---------------------------------------------------------------
Pharmaceuticals -- 3.6%
12,300 Bristol-Myers Squibb Co. 314,142
132,800 Eli Lily & Co. 8,475,296
108,700 Merck & Co. Inc. 6,324,166
294,200 Pfizer Inc. 9,046,650
433,100 Schering-Plough Corp. 7,839,110
- ---------------------------------------------------------------
31,999,364
- ---------------------------------------------------------------
Printing and Publishing -- 1.3%
43,400 Gannett Co., Inc. 3,286,248
94,000 The New York Times Co., Class A Shares (b) 4,359,720
87,300 Tribune Co. 4,275,954
- ---------------------------------------------------------------
11,921,922
- ---------------------------------------------------------------
Radio and TV Broadcasting -- 1.0%
Comcast Corp.:
16,031 Class A Shares (a) 511,549
270,010 Special Class A Shares (a) 8,116,501
- ---------------------------------------------------------------
8,628,050
- ---------------------------------------------------------------
Railroads -- 0.6%
183,600 Burlington Northern Santa Fe Corp. 5,170,176
- ---------------------------------------------------------------
Real Estate -- 0.5%
26,100 Equity Office Properties Trust 677,817
143,200 Equity Residential Properties Trust 3,710,312
- ---------------------------------------------------------------
4,388,129
- ---------------------------------------------------------------
Restaurants -- 0.4%
189,400 McDonald's Corp. 3,238,740
- ---------------------------------------------------------------
Retail Stores -- 3.3%
188,000 The Home Depot, Inc. 5,288,440
557,890 The Kroger Co. (a) 7,977,827
126,800 Limited Brands 1,843,672
79,800 The May Department Stores Co. 1,725,276
376,800 Sears, Roebuck & Co. (b) 10,678,512
52,800 Target Corp. 1,765,632
- ---------------------------------------------------------------
29,279,359
- ---------------------------------------------------------------
See Notes to Financial Statements.
5 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------------------------------
Semiconductors -- 0.7%
72,900 Intel Corp. $ 1,341,360
280,500 Texas Instruments Inc. 5,186,445
- ---------------------------------------------------------------------------------------
6,527,805
- ---------------------------------------------------------------------------------------
Transportation -- 0.4%
161,000 Norfolk Southern Corp. 3,414,810
- ---------------------------------------------------------------------------------------
Utilities - Electric and Gas -- 3.8%
1,101,000 Calpine Corp. (a)(b) 5,912,370
87,600 Duke Energy Corp. 1,540,884
41,800 Entergy Corp. 1,948,298
38,400 Exelon Corp. 2,036,736
25,300 FPL Group, Inc. 1,540,011
117,200 National Fuel Gas Co. 2,749,512
257,425 NiSource Inc. 4,865,332
14,300 Pinnacle West Capital Corp. 475,046
90,500 Praxair, Inc. 5,256,240
340,500 TXU Corp. 6,782,760
48,400 WGL Holdings Inc. 1,305,832
- ---------------------------------------------------------------------------------------
34,413,021
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $503,124,416) 483,536,820
- ---------------------------------------------------------------------------------------
FOREIGN COMMON STOCK -- 1.2%
Australia -- 0.1%
161,700 BHP Billiton Ltd. 915,432
- ---------------------------------------------------------------------------------------
Netherlands -- 0.2%
60,700 Akzo Nobel N.V. (b) 1,351,944
- ---------------------------------------------------------------------------------------
Switzerland -- 0.3%
70,200 Novartis AG (b) 2,772,246
- ---------------------------------------------------------------------------------------
United Kingdom -- 0.6%
702,300 Reed Elsevier PLC 5,605,585
- ---------------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCK
(Cost -- $10,990,489) 10,645,207
- ---------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.5%
Communications Equipment -- 0.2%
71,200 Motorola, Inc., 7.000% due 11/16/04 (b) 2,065,512
- ---------------------------------------------------------------------------------------
Insurance -- 0.3%
35,000 The Chubb Corp., 7.000% due 11/16/05 843,500
39,000 The Hartford Financial Services Group, Inc., 6.000% due 11/16/06 1,764,750
- ---------------------------------------------------------------------------------------
2,608,250
- ---------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost -- $5,978,212) 4,673,762
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
6 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 23.7%
U.S. Treasury Notes:
$14,167,000 2.000% due 11/30/04 (b) $ 14,318,091
3,004,000 5.750% due 11/15/05 (b) 3,302,405
2,913,000 6.875% due 5/15/06 (b) 3,329,355
1,719,000 4.375% due 5/15/07 (b) 1,845,039
3,098,000 3.250% due 8/15/07 (b) 3,183,440
2,992,467 4.250% due 1/15/10 3,450,925
4,708,991 3.000% due 7/15/12 5,059,226
4,894,000 4.000% due 11/15/12 (b) 4,958,043
3,380,000 3.875% due 2/15/13 3,385,546
U.S. Treasury Bonds:
1,637,000 11.875% due 11/15/03 (b) 1,731,064
13,188,000 6.250% due 8/15/23 (b) 15,623,665
425,000 6.250% due 5/15/30 (b) 512,241
3,493,000 5.375% due 2/15/31 (b) 3,812,557
Federal Home Loan Mortgage Corp. (FHLMC):
10,656,000 7.000% due 7/15/05 (b) 11,859,446
2,276,000 5.500% due 7/15/06 (b) 2,505,166
372,000 6.000% due 6/15/11 425,078
369,696 6.500% due 12/1/15 390,588
700,000 5.000% due 5/15/17 (c) 721,657
7,000,000 5.500% due 5/15/32 (c) 7,192,500
Federal National Mortgage Association (FNMA):
2,119,000 5.250% due 4/15/07 2,328,453
1,400,000 5.722% due 2/1/09 1,535,682
10,141,000 6.625% due 9/15/09 to 11/15/10 (b) 11,954,715
5,955,000 6.125% due 3/15/12 6,857,069
12,408,757 6.000% due 7/1/16 to 3/1/17 13,011,922
12,651,521 5.500% due 11/1/16 to 1/1/18 13,173,830
1,449,000 4.080% due 4/25/31 1,484,546
1,402,575 7.000% due 6/1/32 1,482,363
4,831,612 7.500% due 10/1/29 to 1/1/32 5,151,919
29,750,777 6.500% due 11/1/28 to 8/1/32 31,097,515
18,325,790 6.000% due 4/1/31 to 1/1/33 19,039,620
15,732,506 5.500% due 6/1/32 to 2/1/33 (c) 16,103,968
1,768,958 Government National Mortgage Association (GNMA),
6.500% due 3/15/28 to 12/15/28 1,863,485
- --------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost -- $207,509,352) 212,691,119
- --------------------------------------------------------------------------
See Notes to Financial Statements.
7 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- --------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 12.8%
Aerospace/Defense -- 0.4%
$ 931,000 Baa1* BAE Systems Holdings Inc., 6.400% due 12/15/11 (e) $ 983,546
1,233,000 BBB- Northrop Grumman Corp., 7.750% due 2/15/31 1,571,455
1,143,000 BBB- Raytheon Co., Sr. Unsecured Notes, 6.150% due 11/1/08 1,264,379
- --------------------------------------------------------------------------------------------
3,819,380
- --------------------------------------------------------------------------------------------
Airlines -- 0.0%
268,416 A- Continental Airlines Inc., Series 981A, 6.648% due 9/15/17 229,407
300,000 Caa3* Jet Equipment Trust, Series 95-D, 11.440% due 11/1/14 (e) 0
- --------------------------------------------------------------------------------------------
229,407
- --------------------------------------------------------------------------------------------
Automotive -- 0.2%
1,500,000 A3* DaimlerChrysler N.A. Holdings Corp., 7.750% due 5/27/03 1,505,853
- --------------------------------------------------------------------------------------------
Bank/Finance -- 3.4%
2,500,000 AAA AIG SunAmerica Global Financing II, 7.600% due 6/15/05 (e) 2,786,173
1,951,000 Aa3* Bank of America Corp., 7.400% due 1/15/11 2,345,695
700,000 A+ Boeing Capital Corp., 6.500% due 2/15/12 (b) 754,168
1,282,000 A Countrywide Home Loans, Inc., 6.850% due 6/15/04 1,355,091
CS First Boston (USA), Inc.:
475,000 Aa3* 6.125% due 11/15/11 516,677
1,621,000 Aa3* 6.500% due 1/15/12 1,803,991
726,000 A1* DBS Capital Funding Corp., 7.657% due 3/15/49 (e)(f) 828,477
Ford Motor Credit Co.:
833,000 A3* 6.875% due 2/1/06 862,276
1,756,000 Baa1* 7.450% due 7/16/31 1,567,156
GE Capital Corp.:
1,232,000 AAA 7.500% due 5/15/05 1,371,273
313,000 AAA 8.750% due 5/21/07 378,420
553,000 AAA 8.500% due 7/24/08 679,849
General Motors Acceptance Corp.:
1,085,000 A2* 7.250% due 3/2/11 1,120,969
657,000 A2* 8.000% due 11/1/31 686,255
2,500,000 AAA KFW International Finance Inc., 4.250% due 4/18/05 2,623,645
Lehman Brothers Holdings Inc.:
711,000 A Sr. Unsecured Notes, 7.750% due 1/15/05 777,648
771,000 A Unsecured Notes, 8.250% due 6/15/07 916,884
599,000 BBB+ MidAmerican Funding LLC, 6.927% due 3/1/29 634,231
1,514,000 Aa3* Morgan Stanley, 6.100% due 4/15/06 1,662,099
1,158,000 Baa1* Pemex Project Funding Master Trust, 9.125% due 10/13/10 1,392,495
1,412,000 A1* Unicredito Italiano Capital Trust II,
9.200% due 10/29/49 (e)(f)(g) 1,772,851
2,874,000 Aa2* Wells Fargo Bank N.A., 7.800% due 6/15/10 (f) 3,192,071
- --------------------------------------------------------------------------------------------
30,028,394
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
8 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- ------------------------------------------------------------------------------------------------
Chemicals -- 0.1%
$ 659,000 A- The Dow Chemical Co., 5.750% due 12/15/08 $ 710,974
- ------------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations -- 2.6%
945,230 Aaa* Bear Stearns Commercial Mortgage Securities, Series 1999-WF2,
Class A1, 6.800% due 9/15/08 1,036,523
288,074 AAA Beneficial Mortgage Corp., Series 1997-2, Class A,
1.440% due 9/28/37 (f) 286,035
249,802 BBB BlackRock Capital Finance L.P., Series 1996-R1, Class B2,
7.750% due 9/25/26 198,905
2,750,000 AAA Capital One Auto Finance Trust, Series 2002-A, Class A4,
4.790% due 1/15/09 2,908,606
2,707,470 Aaa* Certificates Funding Corp., Series 1997-1, Class A2,
6.716% due 12/19/04 2,843,571
Chase Commercial Mortgage Securities Corp.:
1,167,000 AAA Series 1998-2, Class A2, 6.390% due 11/18/30 1,320,410
320,318 Aaa* Series 2000-2, Class A1, 7.543% due 7/15/32 361,441
603,415 Aaa* Chase Mortgage Finance Corp., Series 2002-S2, Class A1,
6.000% due 2/25/17 615,839
1,918,000 Aaa* Countrywide Alternative Loan Trust, Series 2000-1, Class A5,
8.000% due 7/25/30 1,984,682
CRIIMI MAE Commercial Mortgage Trust:
420,000 A Series 1998-1, Class C, 6.701% due 6/20/30 464,517
2,150,000 A+ Series 1998-C1, Class A2, 7.000% due 6/2/33 2,396,530
1,019,059 AAA GS Mortgage Securities Corp., II, Series 1998-C1, Class A1,
6.060% due 10/18/30 1,083,990
794,261 A1* Independent National Mortgage Corp., Series 1996-E, Class B1,
7.000% due 5/25/26 796,886
396,000 AAA J.P. Morgan Commercial Mortgage Finance Corp.,
Series 1998-C6, Class A3, 6.613% due 1/15/30 446,529
39,556,331 NR Morgan Stanley Capital 1, Inc., Series 1998-HF2, Class X,
0.854% due 11/15/30 1,241,543
820,931 AAA Mortgage Capital Funding, Inc., Series 1998-MC3, Class A2,
6.337% due 11/18/31 923,344
500,000 AAA Providian Gateway Master Trust, Series 2000-B, Class A,
1.590% due 3/16/09 492,750
868,384 AAA Residential Accredit Loans, Inc., Series 1998-QS4, Class AI5,
7.000% due 3/25/28 895,605
1,252,876 AAA Residential Funding Mortgage Securities, Series 2001-S28,
Class A1, 6.000% due 12/25/16 1,287,766
634,914 AAA Summit Acceptance Auto Receivables Trust, Series 2000-A,
Class A4, 7.510% due 2/15/07 642,453
787,000 AAA Wells Fargo Mortgage Backed Securities Trust, Series 2002-6,
Class A3, 6.000% due 3/25/17 832,097
- ------------------------------------------------------------------------------------------------
23,060,022
- ------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
9 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- --------------------------------------------------------------------------------------------
Commercial Services -- 0.1%
$ 645,000 Baa1* Cendant Corp., 6.875% due 8/15/06 $ 705,847
- --------------------------------------------------------------------------------------------
Entertainment/Media -- 0.7%
150,000 BBB- A.H. Belo Corp., Unsecured Sr. Debentures,
7.750% due 6/1/27 172,548
157,000 BBB+ AOL Time Warner Inc., 6.150% due 5/1/07 (b) 169,403
527,000 BBB- Clear Channel Communications, Inc., 7.250% due 9/15/03 536,390
1,844,000 BBB Cox Communications, Inc., Unsecured Notes,
7.750% due 11/1/10 2,217,700
1,073,000 BBB- News America, Inc., 6.703% due 5/21/04 1,118,849
484,000 BBB+ Time Warner Entertainment Co. L.P., 10.150% due 5/1/12 644,871
426,000 BBB+ Time Warner Inc., 6.875% due 6/15/18 448,420
600,000 BBB+ Turner Broadcasting System, Inc., Sr. Notes, Class A,
8.375% due 7/1/13 696,788
311,000 BBB+ The Walt Disney Co., Sr. Unsecured Notes, Series B,
6.750% due 3/30/06 341,348
- --------------------------------------------------------------------------------------------
6,346,317
- --------------------------------------------------------------------------------------------
Gaming -- 0.1%
778,000 BBB- MGM MIRAGE, 8.500% due 9/15/10 875,250
- --------------------------------------------------------------------------------------------
Healthcare -- 0.2%
HCA Inc.:
1,489,000 BBB- 6.950% due 5/1/12 1,603,847
260,000 BBB- Sr. Unsecured Notes, 8.750% due 9/1/10 304,489
- --------------------------------------------------------------------------------------------
1,908,336
- --------------------------------------------------------------------------------------------
Machinery -- 0.1%
630,000 BBB Kennametal Inc., Sr. Unsecured Notes, 7.200% due 6/15/02 672,032
- --------------------------------------------------------------------------------------------
Oil/Oil Services -- 0.5%
1,492,000 BBB Devon Financing Corp., ULC, 6.875% due 9/30/11 1,718,862
2,367,000 A- Phillips Petroleum Co., 8.500% due 5/25/05 2,674,338
- --------------------------------------------------------------------------------------------
4,393,200
- --------------------------------------------------------------------------------------------
Paper Products -- 0.2%
248,000 BBB MeadWestvaco Corp., Unsecured Debentures,
6.800% due 11/15/32 263,310
1,500,000 BBB Weyerhaeuser Co., Unsecured Notes, 6.750% due 3/15/12 1,683,234
- --------------------------------------------------------------------------------------------
1,946,544
- --------------------------------------------------------------------------------------------
Pipelines -- 0.1%
985,000 BBB+ Kinder Morgan Energy Partners, L.P., Sr. Unsecured Bonds,
7.750% due 3/15/32 1,211,325
- --------------------------------------------------------------------------------------------
Railroad -- 0.1%
1,285,000 BBB Union Pacific Corp., Series E, 6.340% due 11/25/03 1,315,363
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
10 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- --------------------------------------------------------------------------------------------------
Real Estate -- 0.5%
$ 817,000 BBB+ EOP Operating, L.P., Unsecured Notes, 6.800% due 1/15/09 $ 921,426
2,117,000 BBB Simon Property Group, Inc., 6.750% due 2/9/04 2,198,098
1,555,000 A Socgen Real Estate Co. LLC, 7.640% due 12/12/49 (e) 1,732,438
- --------------------------------------------------------------------------------------------------
4,851,962
- --------------------------------------------------------------------------------------------------
Real Estate Investment Trust -- 0.2%
1,500,000 BBB Vornado Realty L.P., Sr. Unsecured Notes, 5.625% due 6/15/07 1,545,862
- --------------------------------------------------------------------------------------------------
Retail Stores -- 0.2%
1,639,000 BBB+ Federated Department Stores Inc., 8.500% due 6/15/03 1,651,333
- --------------------------------------------------------------------------------------------------
Special Purpose -- 0.2%
623,000 A2* Natexis AMBS Co., LLC, 8.440% due 12/29/49 (e) 739,819
600,000 A+ Prudential Funding LLC, 6.600% due 5/15/08 (e) 679,076
- --------------------------------------------------------------------------------------------------
1,418,895
- --------------------------------------------------------------------------------------------------
Telecommunications -- 1.1%
558,000 A ALLTEL Corp., Sr. Unsecured Notes, 7.875% due 7/1/32 730,957
410,000 BBB AT&T Wireless Services Inc., Sr. Unsecured Notes,
7.350% due 3/1/06 457,105
Citizens Communications Co., Sr. Unsecured Notes:
623,000 BBB 8.500% due 5/15/06 722,344
1,366,000 BBB 7.625% due 8/15/08 1,598,107
334,000 BBB- Sprint Capital Corp., 7.125% due 1/30/06 354,040
3,319,000 BB+ TCI Communications Inc., 9.650% due 3/31/27 3,696,559
2,096,000 A+ Verizon New York Inc., Sr. Unsecured Debentures, Series A,
6.875% due 4/1/12 2,419,884
- --------------------------------------------------------------------------------------------------
9,978,996
- --------------------------------------------------------------------------------------------------
Utilities -- 1.5%
388,000 BBB Cleveland Electric Illuminating Co., Series E, 9.000% due 7/1/23 407,783
1,500,000 BBB+ Dominion Resources, Inc., Series C, 7.600% due 7/15/03 1,516,998
1,500,000 BBB DTE Energy Co., 7.050% due 6/1/11 1,731,410
471,000 BBB+ Entergy Mississippi Inc., 6.200% due 5/1/04 490,245
350,000 Baa2* FirstEnergy Corp., Sr. Unsecured Notes, Series B,
6.450% due 11/15/11 379,119
230,284 BBB- GG1B Funding Corp., 7.430% due 1/15/11 243,310
236,000 BBB- Gulf States Utilities, Series A, 8.250% due 4/1/04 249,145
1,250,000 A+ Hydro-Quebec, Series JL, 6.300% due 5/11/11 1,443,844
268,000 BBB- MidAmerican Energy Holdings Co., Sr. Notes,
5.875% due 10/1/12 (e)(g) 280,601
Niagara Mohawk Power Corp.:
271,000 A+ 7.750% due 5/15/06 307,252
1,053,000 A 8.770% due 1/1/18 1,096,787
389,554 Baa1* Northeast Utilities, Series A, 8.580% due 12/1/06 (e)(g) 440,171
See Notes to Financial Statements.
11 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
Utilities -- 1.5% (continued)
$1,392,000 Baa1* Oncor Electric Delivery Co., Secured Sr. Notes,
7.000% due 5/1/32 $ 1,583,232
1,003,000 Baa1* PSE&G Power LLC, 8.625% due 4/15/31 1,324,346
858,000 BBB Toledo Edison Co., 7.875% due 8/1/04 917,692
796,243 BBB- Waterford 3 Funding - Entergy Louisiana Inc.,
8.090% due 1/2/17 857,976
- -------------------------------------------------------------------------------------------------
13,269,911
- -------------------------------------------------------------------------------------------------
Waste Disposal -- 0.3%
Waste Management, Inc.:
1,274,000 BBB 7.000% due 10/1/04 1,354,431
1,504,000 BBB 7.375% due 8/1/10 1,756,070
- -------------------------------------------------------------------------------------------------
3,110,501
- -------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $106,594,132) 114,555,704
- -------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES -- 0.5%
Banks -- 0.1%
801,000 A Abbey National Capital Trust I, 8.963% due 12/29/49 (f) 1,076,891
- -------------------------------------------------------------------------------------------------
Insurance -- 0.0%
172,000 A Loews Corp., 3.125% due 9/15/07 155,015
- -------------------------------------------------------------------------------------------------
Semiconductors -- 0.4%
2,950,000 Baa1* Analog Devices, Inc., 4.750% due 10/1/05 3,001,625
- -------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
AND NOTES (Cost -- $3,978,107) 4,233,531
- -------------------------------------------------------------------------------------------------
FOREIGN BONDS AND NOTES -- 0.7%
France -- 0.1%
1,000,000 BBB- France Telecom S.A., Sr. Unsecured Notes, 8.500% due 3/1/31 (f) 1,331,320
- -------------------------------------------------------------------------------------------------
Italy -- 0.2%
1,500,000 AA Republic of Italy, 4.625% due 6/15/05 1,583,493
- -------------------------------------------------------------------------------------------------
Luxembourg -- 0.1%
816,000 AAA AIG SunAmerica Institutional Funding II, 5.750% due 2/16/09 883,687
- -------------------------------------------------------------------------------------------------
Mexico -- 0.1%
United Mexican States:
301,000 Baa2* 11.375% due 9/15/16 431,409
333,000 Baa2* 8.125% due 12/30/19 376,623
- -------------------------------------------------------------------------------------------------
808,032
- -------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
12 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(d) SECURITY VALUE
- ----------------------------------------------------------------------------------------------
Netherlands -- 0.1%
$ 500,000 BBB+ Deutsche Telekom International Finance BV, Unsecured Bonds,
8.250% due 6/15/30 (f) $ 620,068
- ----------------------------------------------------------------------------------------------
Norway -- 0.0%
350,000 A2* Union Bank of Norway, 7.350% due 12/29/49 (e)(f) 354,498
- ----------------------------------------------------------------------------------------------
United Kingdom -- 0.1%
975,000 Aa3* Barclays Bank PLC ADR, 6.860% due 9/29/49 (e)(f) 1,087,078
- ----------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS AND NOTES
(Cost -- $6,272,903) 6,668,176
- ----------------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 6.6%
59,061,000 Federal Home Loan Mortgage Discount Notes,
0.000% due 5/1/03 (Cost -- $59,061,000) 59,061,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $903,508,611**) $896,065,319
- ----------------------------------------------------------------------------------------------
(a) Non-income producing security.
(b) All or a portion of this security is on loan (See Note 6).
(c) Security has been issued on a to-be-announced basis ("TBA") (See Note 7).
(d) All ratings are by Standard & Poor's Rating Service, except for those
identified by an asterisk (*), which are rated by Moody's Investors Service.
(e) 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.
(f) Variable rate security.
(g) Security has been issued with attached rights.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 20 and 21 for definitions of ratings.
Abbreviation used in this schedule:
ADR - American Depositary Receipt
LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
$85,253,262 State Street Navigator Securities Lending Trust Prime Portfolio
(Cost -- $85,253,262) $85,253,262
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
13 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 32.7%
U.S. Treasury Notes:
$13,975,000 3.500% due 11/15/06 $14,572,222
1,875,000 4.750% due 11/15/08 2,039,430
2,850,000 3.500% due 1/15/11 3,155,375
1,700,000 4.000% due 11/15/12 1,722,246
3,900,000 3.875% due 2/15/13 3,906,400
U.S. Treasury Bonds:
1,430,000 8.875% due 8/15/17 2,101,765
400,000 5.375% due 2/15/31 436,594
47,000,000 Federal Home Loan Mortgage Corp., 4.750% due 8/13/09 48,504,846
- ---------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS (Cost -- $75,209,642) 76,438,878
- ---------------------------------------------------------------------------------------------
FACE
AMOUNT RATING(a) SECURITY VALUE
- ---------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 53.9%
Aerospace/Defense -- 1.6%
3,600,000 BBB- Raytheon Co., Notes, 5.700% due 11/1/03 3,645,468
- ---------------------------------------------------------------------------------------------
Entertainment/Media -- 4.3%
4,000,000 BBB+ AOL Time Warner Inc., Notes, 6.150% due 5/1/07 4,315,996
4,300,000 BBB- Clear Channel Communications, Inc., Sr. Notes,
7.250% due 9/15/03 4,376,617
1,000,000 BBB Comcast Cable Communications, Inc., Notes,
8.500% due 5/1/27 1,278,035
- ---------------------------------------------------------------------------------------------
9,970,648
- ---------------------------------------------------------------------------------------------
Financial Services -- 9.5%
2,280,000 A2* FleetBoston Financial Corp., Sub. Notes, 7.125% due 4/15/06 2,547,280
2,000,000 A3* Ford Motor Credit Co., Notes, 6.875% due 2/1/06 2,070,290
2,500,000 BBB Gemstone Investors Ltd., Sr. Notes, 7.710% due 10/31/04 (b) 2,418,750
2,000,000 AAA General Electric Capital Corp., Notes, 5.450% due 1/15/13 2,128,180
700,000 A2* General Motors Acceptance Corp., Notes, 6.875% due 8/28/12 713,072
500,000 Aa3* The Goldman Sachs Group, Inc., Notes, 5.700% due 9/1/12 533,516
2,700,000 A Household Finance Corp., Notes, 6.375% due 11/27/12 2,984,045
2,200,000 A J.P. Morgan Chase & Co., Sub. Notes, 5.750% due 1/2/13 2,341,891
Morgan Stanley:
2,100,000 Aa3* Notes, 4.250% due 5/15/10 2,088,513
2,700,000 Aa3* Sr. Notes, 5.300% due 3/1/13 2,807,689
400,000 BBB+ SAFECO Corp., Sr. Notes, 7.250% due 9/1/12 462,122
1,100,000 A3* Washington Mutual Inc., Sr. Notes, 4.375% due 1/15/08 1,146,121
- ---------------------------------------------------------------------------------------------
22,241,469
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
14 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- --------------------------------------------------------------------------------------------
Food -- 1.0%
$2,000,000 BBB- Fred Meyer, Inc., Notes, 7.450% due 3/1/08 $ 2,290,768
- --------------------------------------------------------------------------------------------
Metals and Mining -- 2.1%
5,000,000 A2* Alcan Inc., Notes, 4.500% due 5/15/13 5,015,950
- --------------------------------------------------------------------------------------------
Real Estate Investment Trust -- 5.8%
EOP Operating, L.P., Notes:
570,000 BBB+ 8.100% due 8/1/10 681,372
1,200,000 BBB+ 5.875% due 1/15/13 1,270,672
5,200,000 BBB Post Apartment Homes, L.P., Notes, 6.850% due 3/16/05 5,479,495
6,200,000 Baa1* Simon Property Group Inc., Notes, 6.625% due 6/15/03 6,234,522
- --------------------------------------------------------------------------------------------
13,666,061
- --------------------------------------------------------------------------------------------
Retail -- 3.9%
4,000,000 BBB+ Sears Roebuck Acceptance Corp., Medium-Term Notes,
Series VI, 4.229% due 1/7/04 (c) 4,000,000
5,000,000 AA Wal-Mart Stores Inc., Notes, 4.550% due 5/1/13 5,070,140
- --------------------------------------------------------------------------------------------
9,070,140
- --------------------------------------------------------------------------------------------
Technology -- 0.4%
900,000 A- Hewlett-Packard Co., Notes, 6.500% due 7/1/12 1,009,021
- --------------------------------------------------------------------------------------------
Telecommunications -- 10.2%
8,200,000 Baa1* Cox Enterprises Inc., Notes, 7.875% due 9/15/10 (b) 9,662,888
3,600,000 A+ New York Telephone Co., Debentures, 7.000% due 8/15/25 3,710,934
9,500,000 CCC+ Qwest Capital Funding, Inc., Notes, 7.000% due 8/3/09 7,908,750
800,000 BBB- Sprint Capital Corp., Notes, 8.375% due 3/15/12 894,000
WorldCom Inc., Notes:
3,000,000 Ca* 6.500% due 5/15/04 (d) 855,000
3,000,000 Ca* 7.500% due 5/15/11 (d) 855,000
- --------------------------------------------------------------------------------------------
23,886,572
- --------------------------------------------------------------------------------------------
Utilities -- 15.1%
6,200,000 B Aquila, Inc., Sr. Notes, 6.875% due 10/1/04 5,998,500
1,740,000 BBB- CALENERGY Co., Inc., Sr. Notes, 6.960% due 9/15/03 1,770,290
3,200,000 BBB Cleveland Electric Illuminating Co., Series E,
9.000% due 7/1/23 3,363,158
CMS Energy Corp., Sr. Notes:
1,150,000 B+ 7.625% due 11/15/04 1,150,000
3,600,000 B+ Series B, 6.750% due 1/15/04 3,627,000
930,000 BBB Duke Energy Field Services, LLC, Notes, 7.500% due 8/16/05 1,018,051
4,500,000 BBB El Paso Corp., Medium-Term Notes,
6.950% due 12/15/07 4,038,750
3,300,000 C* Osprey Trust/Osprey I Inc., Secured Notes,
8.310% due 1/15/49 (b)(d) 478,500
See Notes to Financial Statements.
15 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ---------------------------------------------------------------------------------------------
Utilities -- 15.1% (continued)
$3,000,000 Baa1* Pepco Holdings, Inc., Notes, 5.500% due 8/15/07 (b) $ 3,200,688
4,400,000 Baa1* Progress Energy, Inc., Sr. Notes, 6.050% due 4/15/07 4,828,969
PSE&G Energy Holdings Inc., Sr. Notes:
975,000 BBB- 9.125% due 2/10/04 1,009,352
800,000 BBB- 8.625% due 2/15/08 857,006
4,000,000 Ba2* Transcontinental Gas Pipe Line Corp., Notes,
6.125% due 1/15/05 4,080,000
- ---------------------------------------------------------------------------------------------
35,420,264
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $130,141,620) 126,216,361
- ---------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 5.1%
2,000,000 AAA California Infrastructure PG&E-1, Series 1997-1, Class A7,
6.420% due 9/25/08 2,171,762
2,600,000 AAA DaimlerChrysler Auto Trust, Series 2001-C, Class A4,
4.630% due 12/6/06 2,726,023
2,000,000 AAA Discover Card Master Trust I, Series 1996-3, Class A,
6.050% due 8/18/08 2,195,420
2,500,000 AAA Ford Credit Auto Owner Trust, Series 2002-B, Class A4,
4.750% due 8/15/06 2,648,195
200,000 AAA Metris Master Trust, Series 2001-1, Class A,
1.549% due 12/20/07 (c) 190,034
2,000,000 AAA Toyota Auto Receivables Owner Trust, Series 2002-C,
Class A3, 2.650% due 11/15/06 2,035,165
- ---------------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost -- $11,903,751) 11,966,599
- ---------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.3%
1,650,000 Aaa* CS First Boston Mortgage Securities Corp., Series 2001-CK1,
Class A3, 6.380% due 12/16/35 1,863,308
1,240,000 AAA LB-UBS Commercial Mortgage Trust, Series 2002-C4, Class A5,
4.853% due 9/15/31 1,274,972
- ---------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost -- $3,097,327) 3,138,280
- ---------------------------------------------------------------------------------------------
WARRANTS SECURITY VALUE
- ---------------------------------------------------------------------------------------------
WARRANTS(e) -- 0.0%
150 Loral Orion Network Systems, Inc., Expires 1/15/07
(Cost -- $105) 2
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
16 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.0%
$16,361,000 State Street Bank and Trust Co., 1.200% due 5/1/03; Proceeds at
maturity -- $16,361,545; (Fully collateralized by the Federal
National Mortgage Association, 5.500% due 2/15/06;
Market value -- $16,690,993) (Cost -- $16,361,000) $ 16,361,000
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $236,713,445**) $234,121,120
- ----------------------------------------------------------------------------------------
(a) All ratings are by Standard & Poor's Ratings Service, except for those
identified by an asterisk (*), which are rated by Moody's Investors Service.
(b) 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.
(c) Variable rate security.
(d) Security is currently in default.
(e) Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 20 and 21 for definitions of ratings.
See Notes to Financial Statements.
17 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MONEY MARKET PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 43.3%
$ 5,000,000 Abbey National North America matures 5/6/03 1.25% $ 4,999,132
15,000,000 ABN-AMRO North America Finance Inc. mature
6/9/03 to 6/12/03 1.17 to 1.21 14,979,546
20,700,000 ANZ Delaware Inc. mature 5/5/03 to 7/7/03 1.24 to 1.26 20,681,934
20,000,000 Bank of America Corp. matures 5/20/03 1.26 19,986,700
5,000,000 Bank of Nova Scotia matures 6/10/03 1.17 4,993,500
10,000,000 CBA Delaware Finance Inc. matures 7/24/03 1.24 9,971,067
5,000,000 Credit Agricole Indosuez matures 5/6/03 1.25 4,999,132
13,400,000 Danske Corp. mature 6/5/03 to 7/14/03 1.20 to 1.30 13,376,647
20,000,000 Dexia Deleware LLC mature 5/22/03 to 6/9/03 1.20 to 1.25 19,979,708
23,000,000 General Electric Capital Corp. mature
6/6/03 to 9/24/03 1.21 to 1.26 22,938,558
15,000,000 Goldman Sachs & Co. mature 7/7/03 to 8/4/03 1.27 to 1.28 14,959,727
13,000,000 HBOS Treasury Services mature 5/9/03 to 7/9/03 1.17 to 1.31 12,981,495
15,000,000 ING U.S. Funding LLC mature 5/1/03 to 5/16/03 1.20 to 1.25 14,997,396
8,729,000 Lloyds TSB Bank PLC mature 5/6/03 to 7/25/03 1.24 to 1.26 8,713,768
20,000,000 Morgan Stanley mature 5/8/03 to 7/15/03 1.25 to 1.26 19,967,004
15,000,000 Nordea North America Inc. mature
6/20/03 to 7/21/03 1.22 to 1.24 14,963,628
5,000,000 Royal Bank of Scotland PLC matures 5/1/03 1.25 5,000,000
20,000,000 Societe Generale N.A. Inc. mature
5/6/03 to 7/10/03 1.24 to 1.26 19,979,775
21,450,000 Svenska Handelsbanken Inc. mature
5/2/03 to 5/23/03 1.25 21,438,318
3,000,000 The Toronto Dominion Bank matures 5/6/03 1.26 2,999,477
15,000,000 UBS Finance LLC mature 5/7/03 to 5/14/03 1.24 14,994,489
15,000,000 Westpac Capital Corp. mature 6/10/03 to 8/21/03 1.23 to 1.25 14,964,200
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $302,865,201) 302,865,201
- -------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES -- 6.1%
17,850,000 Federal Home Loan Bank mature 5/28/03 to 8/8/03 1.23 to 1.24 17,821,275
15,000,000 Federal Home Loan Mortgage Corp. mature
5/29/03 to 7/28/03 1.23 to 1.25 14,965,540
10,000,000 Federal National Mortgage Association mature
5/12/03 to 8/13/03 1.21 to 1.24 9,979,222
- -------------------------------------------------------------------------------------
TOTAL AGENCY DISCOUNT NOTES
(Cost -- $42,766,037) 42,766,037
- -------------------------------------------------------------------------------------
See Notes to Financial Statements.
18 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MONEY MARKET PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- 3.6%
$ 5,000,000 Chase Manhattan Bank matures 6/11/03 1.26% $ 5,000,000
20,000,000 Wells Fargo Bank N.A. mature 5/6/03 to 6/13/03 1.22 to 1.26 19,999,998
- --------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost -- $24,999,998) 24,999,998
- --------------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 33.6%
15,000,000 Abbey National PLC matures 5/6/03 1.26 15,000,013
5,000,000 ABN-AMRO Bank N.V. matures 6/10/03 1.23 5,000,000
20,000,000 Bank of Montreal mature 5/1/03 to 5/27/03 1.20 to 1.25 20,000,000
10,000,000 Bank of Nova Scotia mature 5/7/03 to 8/21/03 1.24 to 1.25 10,000,004
20,000,000 Barclays Bank PLC mature 5/2/03 to 7/30/03 1.20 to 1.29 20,000,086
20,000,000 BNP Paribas NY mature 5/27/03 to 8/4/03 1.18 to 1.26 20,000,000
20,000,000 Canadian Imperial Bank Commerce NY mature
5/6/03 to 5/19/03 1.25 to 1.26 20,000,062
15,000,000 Credit Agricole Indosuez NY mature
6/30/03 to 7/15/03 1.23 to 1.25 14,999,914
5,000,000 CS First Boston matures 6/23/03 1.27 5,000,000
5,000,000 Danske Bank matures 7/1/03 1.21 5,000,167
10,000,000 HBOS Treasury Services mature 6/5/03 to 7/29/03 1.26 to 1.27 9,999,840
13,000,000 Lloyds TSB Bank mature 5/12/03 to 7/15/03 1.24 to 1.26 13,000,388
22,000,000 Rabo Bank Nederland NV mature 5/27/03 to 7/3/03 1.19 to 1.25 22,000,176
10,000,000 Royal Bank of Canada matures 5/19/03 1.18 9,994,100
10,000,000 Royal Bank of Scotland Group NY mature
6/20/03 to 6/24/03 1.21 to 1.25 9,999,965
15,000,000 The Toronto Dominion Bank NY mature
6/6/03 to 6/10/03 1.23 to 1.26 15,000,098
20,000,000 Unicredito Italiano SPA mature 5/6/03 to 7/28/03 1.21 to 1.27 20,000,984
- --------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $234,995,797) 234,995,797
- --------------------------------------------------------------------------------------
TIME DEPOSITS -- 13.4%
6,984,000 Canadian Imperial Bank Commerce matures 5/1/03 1.31 6,984,000
22,455,000 Chase Manhattan Bank matures 5/1/03 1.34 22,455,000
25,000,000 HSBC Bank USA matures 5/1/03 1.34 25,000,000
25,000,000 National Australia Bank matures 5/1/03 1.34 25,000,000
15,000,000 Royal Bank of Canada matures 5/1/03 1.35 15,000,000
- --------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $94,439,000) 94,439,000
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $700,066,033*) $700,066,033
- --------------------------------------------------------------------------------------
*Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
19 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
BOND RATINGS (UNAUDITED)
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard and Poor's") -- Ratings from "AA"
to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to
show relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA --Bonds rated "AA" have a very strong capacity to pay interest and
repay principal and differs from the highest rated issue only in a
small degree.
A --Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
bonds in higher rated categories.
BBB --Bonds rated "BBB" are regarded as having an adequate capacity to
pay interest and repay principal. Whereas they normally exhibit
adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for bonds in this
category than in higher rated categories.
BB, B, --Bonds rated "BB", "B", "CCC", "CC" and "C" are regarded, on
CCC, CC balance, as predominantly speculative with respect to capacity to
and C pay interest and repay principal in accordance with the terms of
the obligation. "BB" represents the lowest degree of speculation
and "C" the highest degree of speculation. While such bonds will
likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to
adverse conditions.
Moody's Investors Service ("Moody's") -- Numerical modifiers 1, 2 and 3 may be
applied to each generic rating from "Aa" to "Caa," where 1 is the highest and 3
the lowest rating within its generic category.
Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred
to as "gilt edge." Interest pay- ments are protected by a large or
by an exceptionally stable margin and principal is secure. While
the various protective elements are likely to change, such changes
as can be visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa --Bonds rated "Aa" are judged to be of high quality by all standards.
Together with the "Aaa" group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in "Aaa"
securities or fluctuation of protective elements may be of greater
amplitude or there may be other elements present which make the
long-term risks appear somewhat larger than in "Aaa" securities.
A --Bonds rated "A" possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate,
but elements may be present that suggest a susceptibility to
impairment some time in the future.
Baa --Bonds rated "Baa" are considered to be medium grade obligations,
i.e., they are neither highly protected nor poorly secured.
Interest payment and principal security appear adequate for the
present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba --Bonds rated "Ba" are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection
of interest and principal payments may be very moderate thereby not
well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class.
B --Bonds rated "B" generally lack characteristics of the desirable
investments. Assurance of interest and principal payments or
maintenance of other terms of the contract over any long period of
time may be small.
20 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
BOND RATINGS (UNAUDITED) (CONTINUED)
Caa and Ca -- Bonds rated "Caa" and "Ca" are of poor standing. Such issues may
be in default or present elements of danger with respect to
principal or interest.
C --Bonds rated "C" are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
NR --Indicates that the bond is not rated by Standard & Poor's or
Moody's.
21 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------
ASSETS:
Investments, at value
(Cost -- $903,508,611, $236,713,445
and $700,066,033, respectively) $ 896,065,319 $234,121,120 $700,066,033
Loaned securities collateral, at value
(Cost -- $85,253,262) (Note 6) 85,253,262 -- --
Cash 91,501 322 458
Receivable for securities sold 15,935,135 -- --
Dividends and interest receivable 4,792,072 2,645,762 450,474
Receivable for Fund shares sold 1,061,167 614,725 --
Other assets 22,955 13,155 --
- ---------------------------------------------------------------------------------------
Total Assets 1,003,221,411 237,395,084 700,516,965
- ---------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities on loan (Note 6) 85,253,262 -- --
Payable for securities purchased 36,133,956 7,072,413 6,983,846
Management fees payable 576,518 177,232 287,481
Payable for Fund shares purchased 6,296 -- 111,545
Dividends payable -- -- 138,568
Accrued expenses 58,954 23,185 44,382
- ---------------------------------------------------------------------------------------
Total Liabilities 122,028,986 7,272,830 7,565,822
- ---------------------------------------------------------------------------------------
Total Net Assets $ 881,192,425 $230,122,254 $692,951,143
- ---------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 604 $ 197 $ 6,930
Capital paid in excess of par value 924,629,056 228,875,150 692,944,213
Undistributed net investment income 6,902,421 3,176,510 --
Accumulated net realized gain (loss) from
security transactions (42,913,356) 662,722 --
Net unrealized depreciation of investments
and foreign currencies (7,426,300) (2,592,325) --
- ---------------------------------------------------------------------------------------
Total Net Assets $ 881,192,425 $230,122,254 $692,951,143
- ---------------------------------------------------------------------------------------
Shares Outstanding 60,391,538 19,732,989 692,951,143
- ---------------------------------------------------------------------------------------
Net Asset Value $14.59 $11.66 $1.00
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
22 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended April 30, 2003
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
---------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 9,551,247 $ 5,913,820 $4,915,343
Dividends 5,487,093 -- --
Less: Foreign withholding tax (38,225) -- --
-------------------------------------------------------------------------
Total Investment Income 15,000,115 5,913,820 4,915,343
-------------------------------------------------------------------------
EXPENSES:
Management fees (Note 3) 3,363,109 701,949 1,757,493
Custody 57,961 10,939 43,957
Shareholder communications 29,176 6,477 13,802
Audit and legal 16,563 12,310 15,868
Directors' fees 8,987 3,524 7,981
Shareholder servicing fees 2,485 3,709 6,860
Other 4,689 2,913 5,245
-------------------------------------------------------------------------
Total Expenses 3,482,970 741,821 1,851,206
-------------------------------------------------------------------------
Net Investment Income 11,517,145 5,171,999 3,064,137
-------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES (NOTE 4):
Realized Gain (Loss) From:
Security transactions
(excluding short-term
securities) (13,432,929) 662,489 --
Foreign currency transactions 2,869 -- --
-------------------------------------------------------------------------
Net Realized Gain (Loss) (13,430,060) 662,489 --
-------------------------------------------------------------------------
Change in Net Unrealized
Depreciation From:
Security transactions 39,812,749 13,336,412 --
Foreign currency transactions 9,280 -- --
-------------------------------------------------------------------------
Decrease in Net Unrealized
Depreciation 39,822,029 13,336,412 --
-------------------------------------------------------------------------
Net Gain on Investments
and Foreign Currencies 26,391,969 13,998,901 --
-------------------------------------------------------------------------
Increase in Net Assets From
Operations $ 37,909,114 $19,170,900 $3,064,137
-------------------------------------------------------------------------
See Notes to Financial Statements.
23 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
MFS Total Return Portfolio 2003 2002
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 11,517,145 $ 24,161,332
Net realized loss (13,430,060) (23,869,461)
(Increase) decrease in net unrealized depreciation 39,822,029 (34,720,809)
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 37,909,114 (34,428,938)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (29,011,184) (23,799,852)
Net realized gains -- (32,931,862)
- --------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (29,011,184) (56,731,714)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 37,490,859 116,452,441
Net asset value of shares issued for reinvestment
of dividends 29,011,184 56,731,714
Cost of shares reacquired (24,174,128) (56,042,667)
- --------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 42,327,915 117,141,488
- --------------------------------------------------------------------------------
Increase in Net Assets 51,225,845 25,980,836
NET ASSETS:
Beginning of period 829,966,580 803,985,744
- --------------------------------------------------------------------------------
End of period* $881,192,425 $829,966,580
- --------------------------------------------------------------------------------
* Includes undistributed net investment income of: $6,902,421 $24,393,591
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
24 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
Travelers Managed Income Portfolio 2003 2002
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 5,171,999 $ 9,877,758
Net realized gain 662,489 1,483,551
(Increase) decrease in net unrealized depreciation 13,336,412 (20,235,374)
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 19,170,900 (8,874,065)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (12,334,513) (10,827,859)
Net realized gains (824,238) (813,814)
- --------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (13,158,751) (11,641,673)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 15,442,749 37,658,544
Net asset value of shares issued for reinvestment
of dividends 13,158,751 11,641,673
Cost of shares reacquired (12,268,560) (41,602,884)
- --------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 16,332,940 7,697,333
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 22,345,089 (12,818,405)
NET ASSETS:
Beginning of period 207,777,165 220,595,570
- --------------------------------------------------------------------------------
End of period* $230,122,254 $207,777,165
- --------------------------------------------------------------------------------
* Includes undistributed net investment income of: $3,176,510 $10,339,024
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
25 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
Smith Barney Money Market Portfolio 2003 2002
- -------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 3,064,137 $ 8,748,428
Net realized gain -- 785
- ------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 3,064,137 8,749,213
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
Net investment income (3,064,137) (8,748,428)
Net realized gains -- (785)
- ------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (3,064,137) (8,749,213)
- ------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 234,179,932 1,536,117,104
Net asset value of shares issued for reinvestment of dividends 3,276,969 8,870,018
Cost of shares reacquired (277,192,269) (1,417,106,947)
- ------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (39,735,368) 127,880,175
- ------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (39,735,368) 127,880,175
NET ASSETS:
Beginning of period 732,686,511 604,806,336
- ------------------------------------------------------------------------------------------------
End of period $ 692,951,143 $ 732,686,511
- ------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
26 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The MFS Total Return, Travelers Managed Income and Smith Barney Money Market
Portfolios ("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 eleven other
separate investment funds: Alliance Growth, AIM Capital Appreciation, Salomon
Brothers Strategic Total Return Bond, Putnam Diversified Income, Smith Barney
High Income, Smith Barney Large Cap Value, Smith Barney International All Cap
Growth, Smith Barney Large Capitalization Growth, 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 that 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) the Smith Barney
Money Market Portfolio uses the amortized cost method for valuing all of its
portfolios securities; the MFS Total Return and Travelers Managed Income
Portfolios use the amortized cost method for valuing securities with maturities
less than 60 days, accordingly, the cost of securities plus accreted discount
or minus amortized premium approximates value; (c) securities traded on
national securities markets are valued at the closing prices on such markets;
fixed-income securities are valued at the mean between the bid and asked prices
provided by an independent pricing service, securities for which no sales price
was reported and U.S. government agencies and obligations are valued at the
mean between the bid and asked prices; (d) 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 Fund determines the existence of a dividend
declaration after exercising reasonable due diligence; (e) gains or losses on
the sale of securities are calculated by using the specific identification
method; (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; (h) the
accounting records of the Funds are maintained in U.S. dollars. All assets and
liabilities denominated in foreign currencies are trans-
27 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
lated 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; (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) 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 (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.
2. Dividends
The Smith Barney Money Market Portfolio declares and records a dividend of
substantially all its net investment income on each business day. Such
dividends are paid or reinvested monthly on the payable date.
The dividend policy for MFS Total Return Portfolio and Travelers Managed Income
Portfolio is to distribute dividends and capital gains, if any, annually.
3. 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
Money Market Portfolio ("SBMM"). Travelers Investment Adviser, Inc. ("TIA") and
Travelers Asset Management International Company, LLC ("TAMIC"), affiliates of
SBFM, act as the investment managers of the MFS Total Return Portfolio
("MFSTR") and the Travelers Managed Income Portfolio ("TMI"), respectively.
SBMM pays SBFM a management fee calculated at an annual rate of 0.50% of the
average daily net assets of the SBMM. MFSTR pays TIA a management fee
calculated at an annual rate of 0.80% of the average daily
28 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
net assets of MFSTR. TMI pays TAMIC a management fee calculated at an annual
rate of 0.65% of the average daily net assets of TMI. These fees are calculated
daily and paid monthly.
TIA has a sub-advisory agreement with Massachusetts Financial Services Company
("MFS"). Pursuant to the sub-advisory agreement, MFS is responsible for the
day-to-day portfolio operations and investment decisions for MFSTR and is
compensated by TIA for such services at an annual rate of 0.375% of the average
daily net assets of MFSTR.
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 MFSTR.
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 of the Funds paid
transfer agent fees of $2,500 to CTB.
During 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, did not receive any brokerage commissions.
Most of the officers and one Director of the Series are employees of Citigroup
or its affiliates.
4. 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 as follows:
MFSTR TMI
-----------------------------------------------------------------------
Purchases $323,023,070 $120,535,312
----------------------------------------------------------------------
Sales 228,798,215 125,402,146
----------------------------------------------------------------------
29 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:
MFSTR TMI
---------------------------------------------------------
Gross unrealized appreciation $ 37,182,705 $ 6,610,439
Gross unrealized depreciation (44,625,997) (9,202,764)
---------------------------------------------------------
Net unrealized depreciation $ (7,443,292) $(2,592,325)
---------------------------------------------------------
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
between 2% and 5% depending on the type of securities loaned. The custodian
establishes and maintains the collateral in segregated accounts.
At April 30, 2003, MFSTR loaned stocks having a market value of $89,286,471.
MFSTR received cash collateral amounting to $85,253,262 which was invested in
State Street Navigator Securities Lending Trust Prime Portfolio. In addition,
MFSTR received securities collateral amounting to $6,445,736.
Income earned by MFSTR from securities lending for the six months ended April
30, 2003 was $83,740.
At April 30, 2003, SBMM and TMI did not have any securities on loan.
30 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
7. 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. 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 portfolio
securities.
At April 30, 2003, MFSTR held TBA securities with a total cost of $19,938,392.
In addition, at April 30, 2003, TMI and SBMM did not hold any TBA securities.
8. 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 identical 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.
Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended
April 30, 2003 October 31, 2002
---------------------------------------------------------------------
MFS Total Return Portfolio
Shares sold 2,591,531 7,043,809
Shares issued on reinvestment 2,044,481 3,945,182
Shares reacquired (1,703,749) (3,543,265)
---------------------------------------------------------------------
Net Increase 2,932,263 7,445,726
---------------------------------------------------------------------
Travelers Managed Income Portfolio
Shares sold 1,357,057 3,116,379
Shares issued on reinvestment 1,187,613 1,030,237
Shares reacquired (1,073,468) (3,439,705)
---------------------------------------------------------------------
Net Increase 1,471,202 706,911
---------------------------------------------------------------------
Smith Barney Money Market Portfolio
Shares sold 234,179,932 1,536,117,104
Shares issued on reinvestment 3,276,969 8,870,018
Shares reacquired (277,192,269) (1,417,106,947)
---------------------------------------------------------------------
Net Increase (Decrease) (39,735,368) 127,880,175
---------------------------------------------------------------------
31 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:
MFS Total Return Portfolio 2003/(1)/ 2002 2001 2000 1999/(2)/ 1998
- -----------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $14.44 $16.08 $17.16 $16.22 $16.23 $15.31
- -----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income/(3)/ 0.19 0.39 0.42 0.54 0.52 0.32
Net realized and unrealized gain
(loss)/(3)/ 0.46 (0.98) (0.42) 1.43 0.72 1.36
- -----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.65 (0.59) (0.00)* 1.97 1.24 1.68
- -----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.50) (0.44) (0.48) (0.46) (0.37) (0.28)
Net realized gains -- (0.61) (0.60) (0.57) (0.88) (0.48)
- -----------------------------------------------------------------------------------------------
Total Distributions (0.50) (1.05) (1.08) (1.03) (1.25) (0.76)
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.59 $14.44 $16.08 $17.16 $16.22 $16.23
- -----------------------------------------------------------------------------------------------
Total Return 4.59%++ (3.59)% (0.22)% 12.77% 7.62% 10.94%
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $881 $830 $804 $697 $622 $462
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.83%+ 0.83% 0.83% 0.83% 0.84% 0.84%
Net investment income/(3)/ 2.74+ 2.81 3.08 3.42 3.11 3.32
- -----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 29% 81% 88% 108% 97% 118%
- -----------------------------------------------------------------------------------------------
(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 $0.40,
$0.99 and 2.91%, 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.
* 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.
32 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:
Travelers Managed Income Portfolio 2003/(1)(2)/ 2002/(2)/ 2001/(2)/ 2000/(2)/ 1999/(2)/ 1998/(2)/
- -------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $11.38 $12.57 $11.58 $11.49 $11.65 $11.55
- -------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income/(3)/ 0.27 0.56 0.71 0.76 0.65 0.72
Net realized and unrealized gain
(loss)/(3)/ 0.74 (1.07) 0.83 (0.24) (0.45) (0.06)
- -------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.01 (0.51) 1.54 0.52 0.20 0.66
- -------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.68) (0.63) (0.55) (0.43) (0.29) (0.54)
Net realized gains (0.05) (0.05) -- -- (0.07) (0.02)
- -------------------------------------------------------------------------------------------------------
Total Distributions (0.73) (0.68) (0.55) (0.43) (0.36) (0.56)
- -------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.66 $11.38 $12.57 $11.58 $11.49 $11.65
- -------------------------------------------------------------------------------------------------------
Total Return 9.16%++ (4.06)% 13.50% 4.55% 1.75% 5.71%
- -------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $230 $208 $221 $151 $113 $58
- -------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.69%+ 0.69% 0.68% 0.69% 0.76% 0.84%
Net investment income/(3)/ 4.79+ 4.68 5.76 6.56 5.57 6.11
- -------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 58% 177% 194% 181% 411% 327%
- -------------------------------------------------------------------------------------------------------
(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 $0.60,
$1.11 and 5.02%, respectively. Per share, ratios and supplemental data for
the period 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.
33 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:
Smith Barney
Money Market Portfolio 2003/(1)(2)/ 2002/(2)/ 2001/(2)/ 2000/(2)/ 1999/(2)/ 1998/(2)/
- -------------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------
Net investment income 0.004 0.014 0.044 0.057 0.046 0.050
Distributions from net investment income (0.004) (0.014) (0.044) (0.057) (0.046) (0.050)
- -------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------
Total Return 0.43%++ 1.40% 4.46% 5.88% 4.66% 5.11%
- -------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $693 $733 $605 $319 $277 $165
- -------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.53%+ 0.53% 0.53% 0.53% 0.54% 0.64%
Net investment income 0.87+ 1.38 4.17 5.75 4.58 4.99
- -------------------------------------------------------------------------------------------------------
(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.
34 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
TRAVELERS SERIES
FUND INC.
DIRECTORS INVESTMENT
A.E. Cohen MANAGERS
Robert A. Frankel Smith Barney Fund
Michael E. Gellert Management LLC
R. Jay Gerken, Chairman Travelers Investment
Rainer Greeven Adviser, Inc.
Susan M. Heilbron Travelers Asset Management
International Company, LLC
OFFICERS CUSTODIAN
R. Jay Gerken State Street Bank and
President and Chief Trust Company
Executive Officer
ANNUITY
Lewis E. Daidone ADMINISTRATION
Senior Vice President Travelers Annuity
and Chief Administrative Investor Services
Officer 5 State House Square
1 Tower Square
Richard L. Peteka Hartford, CT 06183
Chief Financial Officer
and Treasurer
Martin R. Hanley
Vice President
Denny M. Voss
Vice President
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. -- MFS Total Return, Travelers Managed Income and
Smith Barney Money Market 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
IN0804 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