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
AGGRESSIVE GROWTH PORTFOLIO
SMITH BARNEY
MID CAP CORE PORTFOLIO
SEMI-ANNUAL REPORT | APRIL 30, 2003
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
WHAT'S INSIDE
Letter From the Chairman............ 1
Schedules of Investments............ 2
Statements of Assets and Liabilities 10
Statements of Operations............ 11
Statements of Changes in Net Assets. 12
Notes to Financial Statements....... 14
Financial Highlights................ 18
LETTER FROM THE CHAIRMAN
[PHOTO]
R. JAY GERKEN
Chairman, President and Chief Executive Officer
Dear Shareholder,
The philosopher Bertrand Russell famously remarked that, "Change is one thing,
progress is another." You will notice in the following pages that we have begun
to implement some changes to your shareholder report and we will be reflecting
other changes 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 AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------
COMMON STOCK -- 93.1%
Biotechnology -- 18.3%
162,500 Alkermes, Inc.* $ 1,621,750
488,745 Amgen Inc.* 29,964,956
568,850 Chiron Corp.* 23,226,145
43,200 Genentech, Inc.* 1,641,168
Genzyme Corp.:
11,574 Biosurgery Division* 22,801
644,600 General Division* 25,964,488
165,775 ImClone Systems Inc.* 3,023,736
2,300 Nabi Biopharmaceuticals* 14,398
- ----------------------------------------------------------------------------
85,479,442
- ----------------------------------------------------------------------------
Broadcasting/Cable -- 16.2%
1,038,275 Cablevision Systems New York Group, Class A Shares* 23,278,125
Comcast Corp.:
114,842 Class A Shares* 3,664,608
745,260 Class A Special Shares* 22,402,516
1,361,400 Liberty Media Corp., Class A Shares* 14,975,400
254,699 Viacom Inc., Class B Shares* 11,056,484
34,600 World Wrestling Entertainment, Inc.* 314,168
- ----------------------------------------------------------------------------
75,691,301
- ----------------------------------------------------------------------------
Communications -- 1.7%
71,000 AT&T Corp. 1,210,550
161,100 C-COR.net Corp.* 549,351
384,325 Nokia Oyj ADR 6,368,265
- ----------------------------------------------------------------------------
8,128,166
- ----------------------------------------------------------------------------
Computer Hardware -- 1.3%
509,076 Maxtor Corp.* 2,799,918
242,000 Quantum Corp. -- DLT & Storage Systems* 834,900
100,000 Sandisk Corp.* 2,420,000
- ----------------------------------------------------------------------------
6,054,818
- ----------------------------------------------------------------------------
Computer Software/Internet -- 3.1%
730,367 AOL Time Warner Inc.* 9,991,421
75,000 DSP Group Inc.* 1,567,500
32,264 Microsoft Corp. 824,990
105,000 RSA Security Inc.* 1,006,950
75,000 Verity, Inc.* 1,239,750
- ----------------------------------------------------------------------------
14,630,611
- ----------------------------------------------------------------------------
Diversified Technology -- 1.2%
125,000 Cabot Microelectronics Corp.* 5,402,500
12,400 Excel Technology, Inc.* 284,208
- ----------------------------------------------------------------------------
5,686,708
- ----------------------------------------------------------------------------
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 AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------
Drug Delivery/Testing -- 1.1%
1,400 Albany Molecular Research, Inc.* $ 16,156
5,400 Cygnus, Inc.* 2,484
90,000 IMPATH Inc.* 1,323,000
296,666 King Pharmaceuticals, Inc.* 3,740,958
- -----------------------------------------------------------
5,082,598
- -----------------------------------------------------------
Electronics - Military -- 1.8%
183,800 L-3 Communications Holdings, Inc.* 8,160,720
- -----------------------------------------------------------
Healthcare - Miscellaneous -- 0.6%
55,100 Biosite Diagnostics Inc.* 2,351,668
173,000 Nanogen, Inc.* 252,580
800 Tularik Inc.* 4,376
- -----------------------------------------------------------
2,608,624
- -----------------------------------------------------------
Investment Banking and Other Financials -- 11.7%
33,000 Astoria Financial Corp. 825,660
72,725 CIT Group Inc. 1,481,408
380,300 Lehman Brothers Holdings Inc. 23,947,491
404,400 Merrill Lynch & Co., Inc. 16,600,620
225,000 Nasdaq-100 Index Tracking Stock* 6,176,250
153,010 Neuberger Berman Inc. 4,697,407
54,900 Roslyn Bancorp, Inc. 1,047,492
- -----------------------------------------------------------
54,776,328
- -----------------------------------------------------------
Managed Healthcare Providers -- 6.3%
318,000 UnitedHealth Group Inc. 29,297,340
- -----------------------------------------------------------
Multi-Industry -- 2.6%
762,412 Tyco International Ltd. 11,893,627
- -----------------------------------------------------------
Oil Field Equipment/Services -- 5.5%
165,800 Core Laboratories N.V.* 1,658,000
403,150 Grant Prideco, Inc.* 4,599,941
486,450 Weatherford International, Inc.* 19,569,884
- -----------------------------------------------------------
25,827,825
- -----------------------------------------------------------
Pharmaceuticals -- 15.6%
633,800 Forest Laboratories, Inc.* 32,780,136
280,000 ICN Pharmaceuticals, Inc. 2,450,000
408,806 IDEC Pharmaceuticals Corp.* 13,388,396
224,750 Isis Pharmaceuticals, Inc.* 1,242,868
189,448 Johnson & Johnson 10,677,289
663,905 Millennium Pharmaceuticals, Inc.* 7,302,955
12,189 Pfizer Inc. 374,812
101,200 SICOR Inc.* 1,814,516
229,400 Vertex Pharmaceuticals Inc.* 2,768,858
- -----------------------------------------------------------
72,799,830
- -----------------------------------------------------------
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 AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------------------------
Semiconductors -- 3.3%
229,000 Cirrus Logic, Inc.* $ 622,880
65,000 Cree, Inc.* 1,296,750
277,334 Intel Corp. 5,102,946
634,300 Micron Technology, Inc.* 5,391,550
25,000 ParthusCeva, Inc.* 106,250
10,300 Standard Microsystems Corp.* 130,398
241,091 Teradyne, Inc.* 2,796,656
- -----------------------------------------------------------------------------------------
15,447,430
- -----------------------------------------------------------------------------------------
Telephone Cellular -- 2.8%
709,360 AT&T Wireless Services Inc.* 4,582,466
760,000 Motorola, Inc. 6,011,600
470,000 RF Micro Devices, Inc.* 2,232,500
- -----------------------------------------------------------------------------------------
12,826,566
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $582,560,673) 434,391,934
- -----------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.9%
$32,194,000 UBS PaineWebber Inc., 1.270% due 5/1/03; Proceeds at maturity --
$32,195,136; (Fully collateralized by U.S. Treasury Notes,
1.875% due 9/30/04; Market value -- $32,837,880)
(Cost -- $32,194,000) 32,194,000
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $614,754,673**) $466,585,934
- -----------------------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
4 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MID CAP CORE PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------
COMMON STOCK -- 93.3%
Aerospace/Defense -- 1.5%
17,605 Alliant Techsystems Inc.* $ 945,741
- -----------------------------------------------------------------------
Biotechnology -- 0.3%
3,075 iShares Nasdaq Biotechnology Index Fund 176,198
- -----------------------------------------------------------------------
Broadcast Media -- 2.2%
7,450 Entercom Communications Corp.* 361,996
15,500 Lin TV Corp.* 370,605
22,660 Univision Communications, Inc., Class A Shares* 686,145
- -----------------------------------------------------------------------
1,418,746
- -----------------------------------------------------------------------
Building/Construction -- 0.9%
7,075 Jacobs Engineering Group, Inc.* 291,136
5,600 Lennar Corp. 303,744
- -----------------------------------------------------------------------
594,880
- -----------------------------------------------------------------------
Business Services -- 1.9%
51,468 The Bisys Group, Inc.* 868,787
10,970 Manpower, Inc. 360,694
- -----------------------------------------------------------------------
1,229,481
- -----------------------------------------------------------------------
Chemicals -- 4.7%
17,020 Ecolab Inc. 869,552
17,140 Engelhard Corp. 420,787
36,810 International Flavors & Fragrances Inc.+ 1,169,822
8,975 Praxair, Inc. 521,268
- -----------------------------------------------------------------------
2,981,429
- -----------------------------------------------------------------------
Commercial Products -- 1.7%
15,350 Fastenal Co. 530,957
11,275 W.W. Grainger, Inc. 520,341
- -----------------------------------------------------------------------
1,051,298
- -----------------------------------------------------------------------
Computer Hardware -- 0.7%
3,575 Imation Corp.* 122,623
29,050 Symbol Technologies, Inc. 317,517
- -----------------------------------------------------------------------
440,140
- -----------------------------------------------------------------------
Computer Software -- 7.7%
9,350 Actel Corp.* 185,224
181,975 Agere Systems Inc.* 325,735
75,400 BEA Systems, Inc.* 807,534
49,100 Borland Software Corp.* 445,337
7,975 Business Objects S.A., Sponsored ADR* 173,297
8,050 Electronic Arts Inc.* 477,124
See Notes to Financial Statements.
5 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MID CAP CORE PORTFOLIO
SHARES SECURITY VALUE
------------------------------------------------------------------
Computer Software -- 7.7% (continued)
11,805 Intuit Inc.* $ 457,798
15,380 Mercury Interactive Corp.* 521,997
44,770 Network Associates, Inc.* 511,721
56,250 Quest Software, Inc. 601,875
13,950 TIBCO Software Inc. 68,774
15,650 VERTIAS Software Corp.* 344,456
------------------------------------------------------------------
4,920,872
------------------------------------------------------------------
Consumer Products and Services -- 3.3%
18,615 Alberto-Culver Co., Class B Shares 887,563
12,750 Avery Dennison Corp. 675,878
11,149 Weight Watchers International, Inc.* 523,780
------------------------------------------------------------------
2,087,221
------------------------------------------------------------------
Energy -- 8.6%
7,675 Ameren Corp. 314,522
17,390 Cooper Cameron Corp.* 832,285
24,565 Murphy Oil Corp. 1,023,132
14,225 Nabors Industries, Inc.* 557,620
22,740 Newfield Exploration Co.* 782,029
12,475 Puget Energy, Inc. 263,472
15,975 Smith International, Inc. 568,071
27,400 Weatherford International, Inc.* 1,102,302
------------------------------------------------------------------
5,443,433
------------------------------------------------------------------
Entertainment -- 0.9%
29,750 Royal Caribbean Cruises Ltd. 552,457
------------------------------------------------------------------
Financial Services -- 9.5%
35,225 Banknorth Group, Inc. 841,173
5,165 The Chicago Mercantile Exchange 292,029
19,325 Compass Bancshares, Inc. 651,639
22,440 Doral Financial Corp. 897,824
31,810 Investors Financial Services Corp. 693,776
15,120 M&T Bank Corp. 1,277,186
12,300 Nasdaq-100 Index Tracking Stock 337,635
24,990 National Commerce Financial Corp. 508,297
28,432 Waddell & Reed Financial, Inc., Class A Shares 568,640
------------------------------------------------------------------
6,068,199
------------------------------------------------------------------
Food and Beverage -- 2.8%
7,825 Dean Foods Co.* 340,622
21,065 Hormel Foods Corp. 484,706
19,981 Pepsi Bottling Group, Inc. 410,410
16,205 Performance Food Group Co. 568,471
------------------------------------------------------------------
1,804,209
------------------------------------------------------------------
See Notes to Financial Statements.
6 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MID CAP CORE PORTFOLIO
SHARES SECURITY VALUE
-----------------------------------------------------------------------
Insurance -- 8.2%
27,260 Ambac Financial Group, Inc.+++ $1,590,621
10,260 Anthem, Inc.* 704,246
22,910 IPC Holdings, Ltd. 786,958
15,631 Nationwide Financial Services, Inc., Class A Shares 440,013
13,650 PartnerRe Ltd. 730,275
8,200 Stancorp Financial Group, Inc. 440,340
15,900 Willis Group Holdings Ltd. 495,921
-----------------------------------------------------------------------
5,188,374
-----------------------------------------------------------------------
Machinery -- 0.7%
13,905 IDEX Corp. 442,874
-----------------------------------------------------------------------
Manufacturing -- 5.5%
30,900 Alliance Gaming Corp.* 493,473
11,660 American Standard Cos. Inc.* 830,075
20,425 ASML Holding N.V.* 179,944
14,930 Imax Corp.* 117,648
11,200 Lear Corp.* 445,088
5,875 Mohawk Industries, Inc.* 325,886
9,350 Navistar International Corp. 260,865
10,800 Parker-Hannifin Corp. 439,344
27,475 Smurfit-Stone Container Corp. 386,573
-----------------------------------------------------------------------
3,478,896
-----------------------------------------------------------------------
Medical Products and Services -- 7.4%
15,310 Alcon, Inc.* 674,404
9,425 DENTSPLY International Inc. 352,966
16,515 Lincare Holdings Inc.* 501,561
27,875 Mylan Laboratories Inc. 788,026
6,995 Patterson Dental Co.* 280,989
16,475 St. Jude Medical, Inc. 864,279
12,000 Triad Hospitals, Inc.* 264,120
10,930 Universal Health Services, Inc., Class B Shares 422,663
12,022 Zimmer Holdings, Inc.* 563,832
-----------------------------------------------------------------------
4,712,840
-----------------------------------------------------------------------
Pharmaceuticals -- 3.3%
27,380 Gilead Sciences, Inc.* 1,263,313
17,385 Teva Pharmaceutical Industries Ltd., Sponsored ADR 811,879
-----------------------------------------------------------------------
2,075,192
-----------------------------------------------------------------------
Printing and Publishing -- 2.3%
10,735 E.W. Scripps Co. 850,749
808 The Washington Post Co. 589,032
-----------------------------------------------------------------------
1,439,781
-----------------------------------------------------------------------
See Notes to Financial Statements.
7 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MID CAP CORE PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------------------
Real Estate Investment Trust -- 0.6%
13,672 The St. Joe Co. $ 400,590
- ------------------------------------------------------------------------
Retail -- 6.8%
8,180 Abercrombie & Fitch Co., Class A shares* 268,958
9,450 Barnes & Nobles, Inc.* 186,165
16,740 Bed Bath & Beyond Inc.* 661,397
12,590 CDW Computer Centers, Inc.* 536,838
17,525 Landry's Restaurants, Inc. 327,718
13,950 Outback Steakhouse, Inc. 498,573
52,775 PETsMART, Inc.* 798,486
5,350 Whole Foods Market, Inc. 317,576
28,050 Williams-Sonoma, Inc.* 725,934
- ------------------------------------------------------------------------
4,321,645
- ------------------------------------------------------------------------
Technology -- 4.4%
8,420 Affiliated Computer Services, Inc., Class A shares* 401,634
8,575 Amphenol Corp.* 379,787
22,120 Exar Corp.* 326,270
23,800 Jabil Circuit, Inc.* 445,060
9,555 Microchip Technology Inc.* 198,648
38,240 Semtech Corp.* 608,016
37,275 Teradyne, Inc.* 432,390
- ------------------------------------------------------------------------
2,791,805
- ------------------------------------------------------------------------
Telecommunications -- 0.5%
11,275 Amdocs Ltd.* 199,116
28,650 CIENA Corp.* 139,526
- ------------------------------------------------------------------------
338,642
- ------------------------------------------------------------------------
Transportation -- 2.0%
16,550 C.H. Robinson Worldwide, Inc. 608,875
9,115 Expeditors International of Washington, Inc. 331,412
10,450 JetBlue Airways Corp.* 328,444
- ------------------------------------------------------------------------
1,268,731
- ------------------------------------------------------------------------
Utilities -- 4.9%
20,475 KeySpan Corp. 693,488
15,985 NSTAR 690,552
21,850 Pepco Holding, Inc. 375,383
22,625 SCANA Corp. 718,118
24,150 Wisconsin Energy Corp. 635,869
- ------------------------------------------------------------------------
3,113,410
- ------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $57,365,988) 59,287,084
- ------------------------------------------------------------------------
See Notes to Financial Statements.
8 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003
SMITH BARNEY MID CAP CORE PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.7%
$4,280,000 Merrill Lynch & Co., Inc., 1.250% due 5/1/03; Proceeds at maturity --
$4,280,149; (Fully collateralized by various U.S. government agency
obligations, 0.000% to 4.875% due 5/9/03 to 11/15/07;
Market value -- $4,365,612) (Cost -- $4,280,000) $ 4,280,000
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $61,645,988**) $63,567,084
- --------------------------------------------------------------------------------------------
* Non-income producing security.
+ All or a portion of this security is segregated for open futures contracts
commitments (See Note 4).
++All or a portion of this security is held as collateral for open futures
contracts commitments (See Note 4).
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
9 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
Smith Barney Smith Barney
Aggressive Growth Mid Cap Core
Portfolio Portfolio
- --------------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost -- $614,754,673 and
$61,645,988, respectively) $ 466,585,934 $ 63,567,084
Cash 674 883
Receivable for securities sold -- 839,120
Receivable for Fund shares sold 404,253 43,489
Dividends and interest receivable 23,978 33,227
Receivable from broker -- variation margin -- 13,500
Other receivables 61,715 5,910
- -------------------------------------------------------------------------------------------
Total Assets 467,076,554 64,503,213
- -------------------------------------------------------------------------------------------
LIABILITIES:
Management fees payable 293,305 38,596
Payable for Fund shares purchased 25,559 --
Payable for securities purchased -- 1,792,460
Accrued expenses 51,788 29,168
- -------------------------------------------------------------------------------------------
Total Liabilities 370,652 1,860,224
- -------------------------------------------------------------------------------------------
Total Net Assets $ 466,705,902 $ 62,642,989
- -------------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 471 $ 61
Capital paid in excess of par value 618,985,591 73,363,116
Accumulated net investment loss (974,904) --
Undistributed net investment income -- 1,560
Accumulated net realized loss from security transactions
and futures contracts (3,136,517) (12,804,497)
Net unrealized appreciation (depreciation) of investments
and futures contracts (148,168,739) 2,082,749
- -------------------------------------------------------------------------------------------
Total Net Assets $ 466,705,902 $ 62,642,989
- -------------------------------------------------------------------------------------------
Shares Outstanding 47,139,412 6,121,139
- -------------------------------------------------------------------------------------------
Net Asset Value $9.90 $10.23
- -------------------------------------------------------------------------------------------
See Notes to Financial Statements.
10 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended April 30, 2003
Smith Barney Smith Barney
Aggressive Growth Mid Cap Core
Portfolio Portfolio
- -------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 170,575 $ 21,526
Dividends 636,904 236,028
Less: Foreign withholding tax (17,504) (1,032)
- -----------------------------------------------------------------------------------------
Total Investment Income 789,975 256,522
- -----------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,712,371 216,208
Shareholder communications 16,135 5,434
Audit and legal 14,643 10,340
Custody 12,491 17,347
Directors' fees 5,084 1,733
Shareholder servicing fees 2,405 2,482
Other 1,750 1,418
- -----------------------------------------------------------------------------------------
Total Expenses 1,764,879 254,962
- -----------------------------------------------------------------------------------------
Net Investment Income (Loss) (974,904) 1,560
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FUTURES CONTRACTS
(NOTES 3 AND 4):
Realized Loss From:
Security transactions (excluding short-term securities) (218,541) (1,752,404)
Futures contracts -- (56,245)
- -----------------------------------------------------------------------------------------
Net Realized Loss (218,541) (1,808,649)
- -----------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation)
of Investments and Futures Contracts:
Beginning of period (186,711,871) (529,248)
End of period (148,168,739) 2,082,749
- -----------------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) 38,543,132 2,611,997
- -----------------------------------------------------------------------------------------
Net Gain on Investments and Futures Contracts 38,324,591 803,348
- -----------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 37,349,687 $ 804,908
- -----------------------------------------------------------------------------------------
See Notes to Financial Statements.
11 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 Aggressive Growth Portfolio 2003 2002
- -----------------------------------------------------------------------------------
OPERATIONS:
Net investment loss $ (974,904) $ (2,098,569)
Net realized loss (218,541) (2,615,597)
(Increase) decrease in net unrealized depreciation 38,543,132 (139,378,239)
- ----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 37,349,687 (144,092,405)
- ----------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 27,801,377 227,995,910
Cost of shares reacquired (13,659,904) (34,982,576)
- ----------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 14,141,473 193,013,334
- ----------------------------------------------------------------------------------
Increase in Net Assets 51,491,160 48,920,929
NET ASSETS:
Beginning of period 415,214,742 366,293,813
- ----------------------------------------------------------------------------------
End of period* $466,705,902 $ 415,214,742
- ----------------------------------------------------------------------------------
* Includes accumulated net investment loss of: $(974,904) --
- ----------------------------------------------------------------------------------
See Notes to Financial Statements.
12 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 Mid Cap Portfolio 2003 2002
- -------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ 1,560 $ (52,082)
Net realized loss (1,808,649) (8,961,877)
Increase in net unrealized appreciation 2,611,997 2,519,784
- ------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 804,908 (6,494,175)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (58,090)
- ------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (58,090)
- ------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 7,385,845 32,112,318
Net asset value of shares issued for reinvestment of dividends -- 58,090
Cost of shares reacquired (2,192,203) (3,349,324)
- ------------------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 5,193,642 28,821,084
- ------------------------------------------------------------------------------------------
Increase in Net Assets 5,998,550 22,268,819
NET ASSETS:
Beginning of period 56,644,439 34,375,620
- ------------------------------------------------------------------------------------------
End of period* $62,642,989 $56,644,439
- ------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $1,560 --
- ------------------------------------------------------------------------------------------
See Notes to Financial Statements.
13 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The Smith Barney Aggressive Growth Portfolio and Smith Barney Mid Cap Core
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 twelve other separate
investment funds: Smith Barney Large Cap Value, Alliance Growth, Van Kampen
Enterprise, Smith Barney International All Cap Growth, Travelers Managed
Income, Putnam Diversified Income, Salomon Brothers Strategic Total Return Bond
Fund, Smith Barney High Income, MFS Total Return, Smith Barney Money Market,
AIM Capital Appreciation and Smith Barney Large Capitalization Growth
Portfolios. Shares of the Fund 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 followed by the Funds are: (a) security
transactions are accounted for on trade date; (b) securities traded on national
securities markets are valued at the closing prices in the primary exchange on
which they are traded and; 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; (c) securities maturing within 60 days are valued at cost
plus accreted discount or minus amortized premium, which approximates value;
(d) 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;
(e) interest income, adjusted for amortization of premium and accretion of
discount, is recorded on an accrual basis; (f) dividend income is recorded on
the ex-dividend date; foreign dividends are recorded on the ex-dividend date or
as soon as practical after the Funds determine the existence of a dividend
declaration after exercising reasonable due diligence; (g) dividends and
distributions to shareholders are recorded on the ex-dividend date; the Funds
distribute dividends and capital gains, if any, annually; (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 liabilities denominated
14 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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; (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
applicable provisions 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 investment manager of the Smith Barney
Aggressive Growth Portfolio ("SBAG") and Smith Barney Mid Cap Core Portfolio
("SBMCC"). SBAG and SBMCC pay SBFM a management fee calculated at the annual
rates of 0.80% and 0.75%, respectively, of the average daily net assets of each
Fund. These fees are calculated daily and paid monthly.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent and PFPC Global Fund Services ("PFPC") acts as the Funds'
sub-transfer agent. CTB receives account fees and asset-based fees that vary
according to the size and type of account. PFPC is responsible for shareholder
recordkeeping and financial processing for all shareholder accounts and is paid
by CTB. For the six months ended April 30, 2003, each Fund paid transfer agent
fees of $2,500 to CTB.
15 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, received brokerage commissions totaling $5,061.
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 as follows:
SBAG SBMCC
- ---------------------------------------------------------------
Purchases $6,422,032 $24,010,377
- --------------------------------------------------------------
Sales 865,441 17,401,384
- --------------------------------------------------------------
At April 30, 2003, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
SBAG SBMCC
- --------------------------------------------------------------------
Gross unrealized appreciation $ 38,187,162 $ 5,125,936
Gross unrealized depreciation (186,355,901) (3,204,840)
- -------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $(148,168,739) $ 1,921,096
- -------------------------------------------------------------------
4. Futures Contracts
Initial margin deposits made upon entering into futures contracts are
recognized as assets. Securities equal to the initial margin amount are
segregated by the custodian in the name of the broker. Additional securities
are also segregated up to the current market value of the futures contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by "marking to market" on
a daily basis to reflect the market value of the contract at the end of each
day's trading. Variation margin payments are received or made and recognized as
assets due from or liabilities due to broker, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Funds record a
realized gain or loss equal to the difference between the proceeds from (or
cost of) the closing transactions and the Fund's basis in the contract.
16 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Funds enter into such contracts to hedge a portion of their portfolio. The
Funds bear the market risk that arise from changes in the value of the
financial instruments and securities indices (futures contracts).
At April 30, 2003, SBMCC had the following open futures contracts:
Number of Basis Market Unrealized
Contracts Expiration Value Value Gain
--------------------------------------------------------------------
To Buy:
S&P MidCap 400 12 6/03 $2,470,847 $2,632,500 $161,653
--------------------------------------------------------------------
At April 30, 2003, SBAG did not hold any futures contracts.
5. Capital Shares
At April 30, 2003, the Series had six billion shares of capital stock
authorized with a par value of $0.00001 per share. Each share of a Fund
represents an equal proportionate interest in that Fund with each 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 Aggressive Growth Portfolio
Shares sold 2,958,564 19,660,697
Shares reacquired (1,502,675) (3,715,768)
--------------------------------------------------------------------------
Net Increase 1,455,889 15,944,929
--------------------------------------------------------------------------
Smith Barney Mid Cap Core Portfolio
Shares sold 740,312 2,750,365
Shares issued on reinvestment -- 5,832
Shares reacquired (226,197) (322,317)
--------------------------------------------------------------------------
Net Increase 514,115 2,433,880
--------------------------------------------------------------------------
17 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout the year ended October 31,
unless otherwise noted:
Smith Barney Aggressive Growth Portfolio 2003/(1)/ 2002 2001 2000/(2)(3)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $9.09 $12.32 $15.03 $10.00
- -----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment loss (0.02) (0.05) (0.05) (0.03)
Net realized and unrealized gain (loss) 0.83 (3.18) (2.66) 5.07
- -----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.81 (3.23) (2.71) 5.04
- -----------------------------------------------------------------------------------------------
Less Distributions From:
Capital -- -- -- (0.01)
- -----------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.01)
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.90 $ 9.09 $12.32 $15.03
- -----------------------------------------------------------------------------------------------
Total Return 8.91%++ (26.22)% (18.03)% 50.41%
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $466,706 $415,215 $366,294 $164,553
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(4)/ 0.82%+ 0.83% 0.84% 0.99%
Net investment loss (0.46)+ (0.50) (0.40) (0.21)
- -----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 0% 9% 3% 0%
- -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
(2) For the period from November 1, 1999 (commencement of operations) to
October 31, 2000.
(3) Per share amounts have been calculated using the monthly average shares
method.
(4) As a result of a voluntary expense limitation, the expense ratio will not
exceed 1.00%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
18 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout the year ended October 31,
unless
otherwise noted:
Smith Barney
Mid Cap Core Portfolio 2003/(1)/ 2002 2001 2000/(2)/
- -----------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.10 $10.83 $14.22 $10.00
- ---------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)/(3)/ 0.00* (0.02) 0.02 0.06
Net realized and unrealized gain (loss) 0.13 (0.70) (3.36) 4.17
- ---------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.13 (0.72) (3.34) 4.23
- ---------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.01) (0.05) (0.01)
- ---------------------------------------------------------------------------------
Total Distributions -- (0.01) (0.05) (0.01)
- ---------------------------------------------------------------------------------
Net Asset Value, End of Period $10.23 $10.10 $10.83 $14.22
- ---------------------------------------------------------------------------------
Total Return 1.29%++ (6.64)% (23.56)% 42.36%
- ---------------------------------------------------------------------------------
Net Assets, End of Period (000s) $62,643 $56,644 $34,376 $17,498
- ---------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(3)(4)/ 0.88%+ 0.90% 0.95% 0.95%
Net investment income (loss) 0.01+ (0.10) 0.25 0.72
- ---------------------------------------------------------------------------------
Portfolio Turnover Rate 32% 79% 45% 61%
- ---------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited).
(2) For the period from November 1, 1999 (commencement of operations) to
October 31, 2000.
(3) The manager has agreed to waive a portion of its management fee for the
year ended October 31, 2001 and the period ended October 31, 2000. If such
fees were not waived, the per share decreases to net investment income and
the actual expense ratios would have been as follows:
Per Share Decreases to Expense Ratios
Net Investment Income Without Fee Waivers
------------------- -----------------
2001 $0.00* 0.96%
2000 0.04 1.46
(4) As a result of a voluntary expense limitation, the expense ratio will not
exceed 0.95%.
* 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.
19 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders
TRAVELERS SERIES
FUND INC.
DIRECTORS INVESTMENT MANAGER
A.E. Cohen Smith Barney Fund Management LLC
Robert A. Frankel
Michael Gellert CUSTODIAN
R. Jay Gerken, 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, CT 06183
Lewis E. Daidone
Senior Vice President
and Chief Administrative
Officer
Richard L. Peteka
Chief Financial Officer
and Treasurer
Richard A. Freeman
Vice President and
Investment Officer
Lawrence B. Weissman
Vice President and
Investment Officer
Kaprel Ozsolak
Controller
Christina T. Sydor
Secretary
Travelers Series Fund Inc.
This report is submitted for the general information of the shareholders of
the Travelers Series Fund Inc. -- Smith Barney Aggressive Growth Portfolio
and Smith Barney Mid Cap Core 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
IN0896 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