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)
Robert I. Frenkel, Esq.
Smith Barney Fund Management LLC
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: October 31, 2003
ITEM 1. REPORT TO STOCKHOLDERS.
The Annual Report to Stockholders is filed herewith.
--------------------------------------------------
TRAVELERS SERIES FUND INC.
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
STRATEGIC EQUITY
PORTFOLIO
VAN KAMPEN ENTERPRISE PORTFOLIO
--------------------------------------------------
ANNUAL REPORT | OCTOBER 31, 2003
--------------------------------------------------------
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
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WHAT'S INSIDE
Letter from the Chairman......................................... 1
Manager Overview:
Smith Barney Large Cap Value Portfolio......................... 3
Strategic Equity Portfolio..................................... 5
Van Kampen Enterprise Portfolio................................ 7
Fund Performance:
Smith Barney Large Cap Value Portfolio......................... 9
Strategic Equity Portfolio..................................... 11
Van Kampen Enterprise Portfolio................................ 13
Schedules of Investments......................................... 15
Statements of Assets and Liabilities............................. 29
Statements of Operations......................................... 30
Statements of Changes in Net Assets.............................. 31
Notes to Financial Statements.................................... 34
Financial Highlights............................................. 42
Independent Auditors' Report..................................... 45
Additional Information........................................... 46
Tax Information.................................................. 50
LETTER FROM THE CHAIRMAN
[PHOTO]
R. Jay Gerken
R. JAY GERKEN, CFA
Chairman, President and Chief Executive Officer
Dear Shareholder,
The funds' fiscal year was a time of heightened market volatility. When the
period began in November, the economic environment was dominated by
geopolitical tension, corporate scandals, declining consumer confidence and
concerns regarding the general strength of the global economy. Apprehensive and
cautious about the state of affairs in Iraq, businesses and consumers alike
chose to slow their spending due to war-related uncertainty. Consequently, the
U.S. economy and the stock market in general remained weak through the first
quarter of 2003.
However, when the U.S.-led coalition entered Iraq in late March and investors
turned their attention to a pending stabilization in the outlook for corporate
earnings, the U.S. stock market rebounded. Unlike previous rallies over the
past three years, this one proved sustainable, and stock prices generally rose
through the end of the funds' fiscal year in October.
If you have any questions about recent economic events or investing in a
recovering economy, we urge you to talk with your financial adviser. Please
read on to learn more about your fund's performance and the Manager's strategy.
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, CFA
Chairman, President and Chief Executive Officer
November 18, 2003
1 Travelers Series Fund Inc. | 2003 Annual Report
PERFORMANCE OF THE FUNDS AS OF OCTOBER 31, 2003/1/
6 Months 12 Months
Smith Barney Large Cap Value
Portfolio 14.20% 21.38%
S&P 500 Index/2/ 15.62% 20.79%
S&P 500/Barra Value Index/3/ 18.47% 24.82%
Average of Lipper variable equity
income funds/4/ 15.49% 20.48%
Strategic Equity Portfolio (formerly
known as Alliance Growth Portfolio) 16.08% 20.57%
S&P 500 Index/2/ 15.62% 20.79%
Russell 1000 Index/5/ 16.77% 22.32%
Average of Lipper variable multi-cap
growth funds/6/ 21.85% 27.50%
Van Kampen Enterprise Portfolio 15.02% 17.93%
S&P 500 Index/2/ 15.62% 20.79%
Russell 1000 Growth Index/7/ 16.81% 21.81%
Average of Lipper variable multi-cap
growth funds/6/ 21.85% 27.50%
/1/The performance returns set forth above do not reflect the reduction of
initial charges and expenses imposed in connection with investing in
variable annuity contracts such as administrative fees, account charges and
surrender charges, which if reflected, would reduce the performance of the
funds. Past performance is not indicative of future results.
/2/The S&P 500 Index is a market capitalization-weighted index of 500 widely
held common stocks. Please note that an investor cannot invest directly in
an index.
/3/The S&P 500/Barra Value Index is a market-capitalization weighted index of
stocks in the S&P 500 Index having lower price-to-book ratios relative to
the S&P 500 Index as a whole. (A price-to-book ratio is the price of a stock
compared to the difference between a company's assets and liabilities.)
Please note that an investor cannot invest directly in an index.
/4/Lipper Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six- and 12-month periods ended October 31, 2003,
calculated among 58 and 56 funds, respectively, in the fund's Lipper peer
group including the reinvestment of dividends and capital gains.
/5/The Russell 1000 Index measures the performance of the 1000 largest
companies in the Russell 3000 Index, which represents approximately 92% of
the total market capitalization of the Russell 3000 Index. Please note that
an investor cannot invest directly in an index.
/6/Returns are based on the six- and 12-month periods ended October 31, 2003,
calculated among 105 and 104 funds, respectively, in the fund's Lipper peer
group including the reinvestment of dividends and capital gains.
/7/The Russell 1000 Growth Index measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth
values. Please note that an investor cannot invest directly in an index.
2 Travelers Series Fund Inc. | 2003 Annual Report
MANAGER OVERVIEW
Smith Barney Large Cap Value Portfolio
Special Shareholder Notice
As of July 1, 2003, John B. Cunningham is responsible for the day-to-day
management of the fund.
Performance Update
For the 12 months ended October 31, 2003, the fund returned 21.38%. The fund
outperformed its Lipper peer group of variable equity income funds, which had
an average return of 20.48%, for the same period./8/ It also outperformed one
of its unmanaged benchmarks, the S&P 500 Index,/i/ which returned 20.79%, but
underperformed its other unmanaged benchmark, the S&P 500/Barra Value
Index,/ii/ which returned 24.82% for the same period.
Improving Market Boosted Fund Performance/9/
When the period began, rising tensions and the eventual armed conflict between
U.S.-led coalition forces and Iraq, the sudden and rapid spread of Severe Acute
Respiratory Syndrome ("SARS"), as well as ongoing revelations of misdeeds by a
number of corporations and their officers had a profoundly negative impact on
business, consumer and investor confidence and on an already fragile global
economy. The end of major hostilities in Iraq removed some of the uncertainties
that had slowed economic recovery in the U.S., along with some of the pressure
that had been driving up energy prices.
Throughout the period, the Fed continued its highly accommodative monetary
policy, maintaining key interest rates at four-decade lows as additional tax
relief measures worked their way through the U.S. Congress. Toward the end of
the period, this accommodative policy and improving investor confidence buoyed
the equity markets, offering some measure of relief for equity investors. By the
/8/Lipper Inc. is a major independent mutual-fund tracking organization.
Returns are based on the 12-month period ended October 31, 2003, calculated
among 56 funds in the fund's Lipper peer group including the reinvestment of
dividends and capital gains.
/9/The fund's top ten holdings as of October 31, 2003 were: Altria Group, Inc.
(2.54%); Pfizer Inc. (2.48%); Hewlett-Packard Co. (2.24%); Alcoa Inc.
(2.12%); American International Group, Inc. (1.95%); Merrill Lynch & Co.,
Inc. (1.94%); BP PLC (1.90%); McDonald's Corp. (1.80%); ChevronTexaco Corp.
(1.79%); Total SA (1.75%).
3 Travelers Series Fund Inc. | 2003 Annual Report
end of the third quarter of 2003, for the first time since 1999, many of the
major U.S. stock indexes had posted back-to-back quarterly gains.
Technology continued to lead the S&P 500 Index's performance during the period,
accounting for more than one-third of the index's return. Other leading sectors
included materials, consumer discretionary and financials. The materials sector
gathered steam with improving economic reports, and the financials sector
responded to favorable mortgage origination trends, improved credit quality and
strengthening capital markets. The healthcare and telecommunications sectors
posted negative returns during the period.
The top three contributors to fund performance during the period were financial
services company J.P. Morgan Chase & Co., information technology supplier
Comverse Technology, Inc., and Cendant Corp., a provider of travel and real
estate services. The three stocks that detracted most from the fund's
performance included utility company Duke Energy Corp., Tenet Healthcare Corp.,
which owns and operates hospitals and related healthcare facilities, and drug
manufacturer Pfizer Inc.
Thank you for your investment in the Smith Barney Large Cap Value Portfolio. We
appreciate that you have entrusted us to manage your money and value our
relationship with you.
Sincerely,
/s/ John B. Cunningham
John B. Cunningham
Portfolio Manager
November 18, 2003
4 Travelers Series Fund Inc. | 2003 Annual Report
MANAGER OVERVIEW
Strategic Equity Portfolio (formerly known as Alliance Growth Portfolio)
Special Shareholder Notice
Please note that the fund's sub-adviser changed from Alliance Capital
Management L.P. to Fidelity Management & Research Company, effective September
15, 2003. In accordance with this change, the fund's name is now Strategic
Equity Portfolio. The fund seeks capital appreciation by investing at least 80%
of its assets in equity securities. The fund may invest in securities of
foreign issuers, in addition to securities of domestic issuers.
Performance Update
For the 12 months ended October 31, 2003, the fund returned 20.57%. In
comparison, the fund's current and former benchmarks, the S&P 500 Index,/i/ and
the Russell 1000 Index,/iii/ returned 20.79% and 22.32%, respectively, for the
same period. The fund also underperformed its Lipper peer group of variable
multi-cap growth funds, which returned 27.50%, for the same period./10/
Improving Equity Market
Equity markets remained volatile and extraordinarily risk-adverse as the period
began in November 2002 through the end of March, reflecting lackluster economic
growth and corporate profitability. However, as the second quarter of 2003
commenced, markets generally recovered as investors grew more confident in the
prospects for economic recovery and accelerating corporate profits. While the
market recovery has been impressive, the market has been led disproportionately
by equities with higher risk characteristics.
We did not manage the portfolio for the majority of the fund's fiscal year.
Holdings in the technology and financial services sectors generally contributed
to the fund's performance during this period, while its healthcare holdings
generally detracted. Since taking over management of the fund, we have begun to
make select changes to the portfolio to align it with our investment style.
/10/Lipper Inc. is a major independent mutual-fund tracking organization.
Returns are based on the 12-month period ended October 31, 2003, calculated
among 104 funds in the fund's Lipper peer group including the reinvestment
of dividends and capital gains.
5 Travelers Series Fund Inc. | 2003 Annual Report
Thank you for your investment in the Strategic Equity Portfolio. We appreciate
that you have entrusted us to manage your money and value our relationship with
you.
Sincerely,
/s/ R. Jay Gerken
R. Jay Gerken, CFA
Chairman, President and Chief Executive Officer
November 20, 2003
6 Travelers Series Fund Inc. | 2003 Annual Report
MANAGER OVERVIEW
Van Kampen Enterprise Portfolio
Special Shareholder Notice
As of September 30, 2003, Stephen Boyd, Thomas Copper and Mary Jayne Maly, of
Van Kampen Asset Management Inc., are responsible for the day-to-day management
of the fund.
Performance Update
For the 12 months ended October 31, 2003, the fund returned 17.93%. In
comparison, the fund underperformed its unmanaged benchmarks, the S&P 500
Index/i/ and Russell 1000 Growth Index,/iv/ which returned 20.79% and 21.81%,
respectively, for the same period. The fund also underperformed its Lipper peer
group of variable multi-cap growth funds, which had an average return of
27.50%, for the same period./11/ Overall stock selection detracted from
performance, while sector weightings contributed positively to performance.
During the year, we continued to use a "barbell" investment strategy of holding
both economically sensitive and defensive companies in the portfolio.
Market Overview
As signs of an economic rebound emerged, we added stocks to the economically
sensitive portion of the portfolio. We took a somewhat more aggressive stance
by buying more technology and consumer cyclical stocks, while selling consumer
staples. However, we continued to address risk by attempting to be sensitive to
valuations and by limiting the size of the portfolio's largest positions.
The U.S. equity market continued its rally in the third quarter of 2003.
Economic news showed some improvement, with a higher second quarter GDP ("Gross
Domestic Product")./v/ The Federal Reserve left interest rates unchanged and
suggested that rates would likely remain at low levels for some time.
Fund Performance
The largest sector in the portfolio was information technology. Because we had
an overweight position in information technology, it was the most significant
detractor from performance. Our largest overweight sector, financials, also
detracted from performance. The portfolio's overweight in energy, combined
/11/Lipper Inc. is a major independent mutual-fund tracking organization.
Returns are based on the 12-month period ended October 31, 2003, calculated
among 104 funds in the fund's Lipper peer group including the reinvestment
of dividends and capital gains.
7 Travelers Series Fund Inc. | 2003 Annual Report
with prudent stock selection, was beneficial during the early part of the year,
however, overall this position negatively affected performance as the sector
struggled during the period.
The healthcare sector, an underweight position in our fund, was the greatest
positive contributor to performance. Consumer staples, the portfolio's largest
underweight position positively contributed to performance.
Thank you for your investment in the Van Kampen Enterprise Portfolio.
Sincerely,
/s/ Stephen Lyle Boyd /s/ Thomas Copper /s/ Mary Jayne Maly
Stephen Lyle Boyd Thomas Copper Mary Jayne Maly
Van Kampen Asset Management Inc.
November 21, 2003
The information provided is not intended to be a forecast of future events, a
guarantee of future results or investment advice. Views expressed may differ
from those of the firm as a whole.
Portfolio holdings and breakdowns are as of October 31, 2003 and are subject to
change. Please refer to pages 15 through 28 for a list and percentage breakdown
of the funds' holdings.
/i/ The S&P 500 Index is a market capitalization-weighted index of 500 widely
held common stocks. Please note that an investor cannot invest directly in
an index.
/ii/ The S&P 500/Barra Value Index is a market-capitalization weighted index of
stocks in the S&P 500 Index having lower price-to-book ratios relative to
the S&P 500 Index as a whole. (A price-to-book ratio is the price of a
stock compared to the difference between a company's assets and
liabilities.) Please note that an investor cannot invest directly in an
index.
/iii/The Russell 1000 Index measures the performance of the 1,000 largest
companies in the Russell 3000 Index, which represents approximately 92% of
the total market capitalization of the Russell 3000 Index. Please note
that an investor cannot invest directly in an index.
/iv/ The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values. Please note that an investor cannot invest directly in an
index.
/v/ Gross Domestic Product is a market value of goods and services produced by
labor and property in a given country.
Additional Information About Your Fund
The Funds' Manager and some of its affiliates have received requests for
information from various government regulators regarding market timing, late
trading, fees and other mutual fund issues in connection with various
investigations. The Manager and its affiliates are responding to those
information requests, but are not in a position to predict the outcome of these
requests and investigations.
8 Travelers Series Fund Inc. | 2003 Annual Report
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS+ (UNAUDITED)
Twelve Months Ended 10/31/03 21.38%
- ------------------------------------------------------------------------------
Five Years Ended 10/31/03 (0.38)
- ------------------------------------------------------------------------------
6/16/94* through 10/31/03 7.76
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN+ (UNAUDITED)
6/16/94* through 10/31/03 101.52%
- ------------------------------------------------------------------------------
+ Assumes the reinvestment of all dividends and capital gain distributions.
Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which, if
reflected, would reduce the total returns for all periods shown.
* Commencement of operations.
9 Travelers Series Fund Inc. | 2003 Annual Report
HISTORICAL PERFORMANCE (UNAUDITED)
Value of $10,000 Invested in Shares of
the Smith Barney Large Cap Value Portfolio
vs. S&P 500 Index and S&P 500/Barra Value Index+
- --------------------------------------------------------------------------------
June 1994 -- October 2003
[CHART]
Smith Barney Large S&P S&P 500/Barra
Cap Value Portfolio 500 Index++ Value Index++
------------------ ------------- ----------------
6/16/1994 $10,000 $10,000 $10,000
10/94 10,140 10,324 9,906
10/95 12,189 13,053 12,186
10/96 15,182 16,018 15,185
10/97 18,731 21,159 19,697
10/98 20,539 25,817 22,009
10/99 22,290 32,442 26,193
10/00 24,210 34,413 28,729
10/01 21,407 25,847 23,437
10/02 16,602 21,946 19,739
10/31/2003 20,152 26,509 24,638
+Hypothetical illustration of $10,000 invested in shares of the Smith Barney
Large Cap Value Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through October 31, 2003. The S&P 500 Index is an index of widely held
common stocks listed on the New York and American Stock Exchanges and the
over-the-counter markets. Figures for the S&P 500 Index include reinvestment
of dividends. The S&P 500/Barra Value Index is a market-capitalization
weighted index of stocks in the S&P 500 Index having lower price-to-book
ratios relative to the S&P 500 Index as a whole. (A price-to-book ratio is the
price of a stock compared to the difference between a company's assets and
liabilities.) The Indexes are unmanaged and are not subject to the same
management and trading expenses of a mutual fund. Please note that an investor
cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. The performance data represents past performance including the
investment return and principal value of an investment, which will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The graph does not reflect expenses associated with the
separate account such as administrative fees, account charges and surrender
charges which, if reflected, would reduce the total returns for all periods
shown.
++It is the opinion of the management that the S&P 500/Barra Value Index more
accurately reflects the current composition of the Smith Barney Large Cap
Value Portfolio than the S&P 500 Index. In future reporting, the S&P
500/Barra Value Index will be used as the basis of comparison of total return
performance rather than the S&P 500 Index.
10 Travelers Series Fund Inc. | 2003 Annual Report
STRATEGIC EQUITY PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS+ (UNAUDITED)
Twelve Months Ended 10/31/03 20.57%
- ------------------------------------------------------------------------------
Five Years Ended 10/31/03 (1.62)
- ------------------------------------------------------------------------------
6/16/94* through 10/31/03 9.52
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN+ (UNAUDITED)
6/16/94* through 10/31/03 134.62%
- ------------------------------------------------------------------------------
+ Assumes the reinvestment of all dividends and capital gain distributions.
Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which, if
reflected, would reduce the total returns for all periods shown.
* Commencement of operations.
11 Travelers Series Fund Inc. | 2003 Annual Report
HISTORICAL PERFORMANCE (UNAUDITED)
Value of $10,000 Invested in Shares of the
Strategic Equity Portfolio vs.
Russell 1000 Index and S&P 500 Index+
- --------------------------------------------------------------------------------
June 1994 -- October 2003
[CHART]
Strategic Equity S&P 500 Russell 1000
Portfolio Index++ Index++
-------------------------- ------------- ------------------
6/16/1994 10,000 10,000 10,000
10/94 10,650 10,324 10,191
10/95 13,428 13,053 12,612
10/96 17,007 16,018 15,501
10/97 22,549 21,159 20,236
10/98 25,463 25,817 24,039
10/99 34,504 32,442 30,189
10/00 37,702 34,413 32,925
10/01 25,619 25,847 24,351
10/02 19,459 21,946 20,795
10/31/2003 23,462 26,509 25,436
+ Hypothetical illustration of $10,000 invested in shares of the Strategic
Equity Portfolio on June 16, 1994 (commencement of operations), assuming
reinvestment of dividends and capital gains, if any, at net asset value
through October 31, 2003. The Russell 1000 Index is comprised of 1,000 of the
largest capitalized U.S. domiciled companies whose common stock is traded on
either the New York, American or NASDAQ stock exchanges. The S&P 500 Index is
an index composed of widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and over-the-counter markets. Figures for
the Indexes include reinvestment of dividends. The Indexes are unmanaged and
are not subject to the same management and trading expenses of a mutual fund.
Please note that an investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. The performance data represents past performance including the
investment return and principal value of an investment, which will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The graph does not reflect expenses associated with the
separate account such as administrative fees, account charges and surrender
charges which, if reflected, would reduce the total returns for all periods
shown.
++It is the opinion of the subadviser that the S&P 500 Index more accurately
reflects the composition of the Strategic Equity Portfolio than the Russell
1000 Index. In future reporting, the S&P 500 Index will be used as the basis
of comparison of total return performance rather than the Russell 1000 Index.
12 Travelers Series Fund Inc. | 2003 Annual Report
VAN KAMPEN ENTERPRISE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS+ (UNAUDITED)
Twelve Months Ended 10/31/03 17.93%
- --------------------------------------
Five Years Ended 10/31/03 (3.23)
- --------------------------------------
6/16/94* through 10/31/03 7.19
- ----------------------------------
CUMULATIVE TOTAL RETURN+ (UNAUDITED)
6/16/94* through 10/31/03 91.72%
- --------------------------------------
+ Assumes the reinvestment of all dividends and capital gain distributions.
Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which, if
reflected, would reduce the total returns for all periods shown.
* Commencement of operations.
13 Travelers Series Fund Inc. | 2003 Annual Report
HISTORICAL PERFORMANCE (UNAUDITED)
Value of $10,000 Invested in Shares of the
Van Kampen Enterprise Portfolio vs.
S&P 500 Index and Russell 1000 Growth Index+
- --------------------------------------------------------------------------------
June 1994 -- October 2003
[CHART]
Van Kampen
Enterprise S&P 500 Russell 1000
Portfolio Index Growth Index
----------- -------- -------------
6/16/1994 $10,000 $10,000 $10,000
10/94 10,380 10,324 10,602
10/95 12,948 13,053 13,698
10/96 15,972 16,018 16,719
10/97 20,733 21,159 21,815
10/98 22,592 25,817 27,192
10/99 28,576 32,442 36,505
10/00 32,554 34,413 39,910
10/01 20,340 25,847 23,968
10/02 16,257 21,946 19,266
10/31/2003 19,172 26,509 23,468
+ Hypothetical illustration of $10,000 invested in shares of the Van Kampen
Enterprise Portfolio on June 16, 1994 (commencement of operations), assuming
reinvestment of dividends and capital gains, if any, at net asset value
through October 31, 2003. The S&P 500 Index is an index of widely held common
stocks listed on the New York and American Stock Exchanges and the
over-the-counter markets. Figures for the S&P 500 Index include reinvestment
of dividends. The Russell 1000 Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values. (A price-to-book ratio is the price of a stock compared to the
difference between a company's assets and liabilities.) The Indexes are
unmanaged and are not subject to the same management and trading expenses of
a mutual fund. Please note that an investor cannot invest directly in an
index.
All figures represent past performance and are not a guarantee of future
results. The performance data represents past performance including the
investment return and principal value of an investment, which will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The graph does not reflect expenses associated with the
separate account such as administrative fees, account charges and surrender
charges which, if reflected, would reduce the total returns for all periods
shown.
14 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS OCTOBER 31, 2003
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------
COMMON STOCK -- 98.1%
Aerospace and Defense -- 4.0%
199,100 Honeywell International Inc. $ 6,094,451
59,400 Lockheed Martin Corp. 2,753,784
70,700 United Technologies Corp. 5,987,583
- -------------------------------------------------------------
14,835,818
- -------------------------------------------------------------
Banks -- 9.5%
56,000 Bank of America Corp. 4,240,880
186,000 The Bank of New York Co., Inc. 5,801,340
139,400 FleetBoston Financial Corp. 5,630,366
210,200 U.S. Bancorp 5,721,644
107,000 Wachovia Corp. 4,908,090
103,000 Washington Mutual, Inc. 4,506,250
68,600 Wells Fargo & Co. 3,863,552
- -------------------------------------------------------------
34,672,122
- -------------------------------------------------------------
Chemicals -- 1.2%
115,400 The Dow Chemical Co. 4,349,426
- -------------------------------------------------------------
Commercial Services and Supplies -- 1.9%
71,700 Avery Dennison Corp. 3,769,986
127,600 Waste Management, Inc. 3,307,392
- -------------------------------------------------------------
7,077,378
- -------------------------------------------------------------
Communications Equipment -- 4.7%
381,700 3Com Corp.* 2,748,240
234,800 Comverse Technology, Inc.* 4,235,792
1,492,600 Lucent Technologies Inc.* 4,776,320
325,400 Nokia Oyj, Sponsored ADR 5,528,546
- -------------------------------------------------------------
17,288,898
- -------------------------------------------------------------
Computers and Peripherals -- 4.5%
368,200 Hewlett-Packard Co. 8,214,542
41,900 International Business Machines Corp. 3,749,212
1,111,600 Sun Microsystems, Inc.* 4,401,936
- -------------------------------------------------------------
16,365,690
- -------------------------------------------------------------
Diversified Financials -- 9.3%
96,600 American Express Co. 4,533,438
47,100 The Goldman Sachs Group, Inc. 4,422,690
126,400 J.P. Morgan Chase & Co. 4,537,760
213,800 MBNA Corp. 5,291,550
119,700 Merrill Lynch & Co., Inc. 7,086,240
See Notes to Financial Statements.
15 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------
Diversified Financials -- 9.3% (continued)
80,100 Morgan Stanley $ 4,395,087
168,300 Waddell & Reed Financial, Inc., Class A Shares 3,732,894
- ----------------------------------------------------------------------
33,999,659
- ----------------------------------------------------------------------
Diversified Telecommunication Services -- 4.0%
148,100 AT&T Corp. 2,753,179
234,600 SBC Communications Inc. 5,625,708
189,700 Verizon Communications Inc. 6,373,920
- ----------------------------------------------------------------------
14,752,807
- ----------------------------------------------------------------------
Electric Utilities -- 3.3%
138,800 FirstEnergy Corp. 4,773,332
97,400 Progress Energy, Inc. 4,197,940
189,900 Xcel Energy, Inc. 3,114,360
- ----------------------------------------------------------------------
12,085,632
- ----------------------------------------------------------------------
Electronic Equipment and Instruments -- 1.7%
187,800 Celestica Inc.* 2,666,760
646,500 Solectron Corp.* 3,581,610
- ----------------------------------------------------------------------
6,248,370
- ----------------------------------------------------------------------
Energy Equipment and Services -- 4.4%
197,800 ENSCO International Inc. 5,212,030
154,900 GlobalSantaFe Corp. 3,486,799
73,800 Nabors Industries, Ltd.* 2,789,640
243,400 Transocean Inc.* 4,670,846
- ----------------------------------------------------------------------
16,159,315
- ----------------------------------------------------------------------
Food and Drug Retailing -- 3.4%
362,500 Kroger Co.* 6,340,125
291,400 Safeway Inc.* 6,148,540
- ----------------------------------------------------------------------
12,488,665
- ----------------------------------------------------------------------
Food Products -- 1.5%
185,000 Kraft Foods Inc. 5,383,500
- ----------------------------------------------------------------------
Gas Utilities -- 1.3%
225,100 NiSource Inc. 4,661,821
- ----------------------------------------------------------------------
Health Care Providers and Services -- 1.5%
142,800 HCA Inc. 5,462,100
- ----------------------------------------------------------------------
Hotels, Restaurants and Leisure -- 2.5%
262,900 McDonald's Corp. 6,575,129
78,200 MGM MIRAGE 2,776,100
- ----------------------------------------------------------------------
9,351,229
- ----------------------------------------------------------------------
See Notes to Financial Statements.
16 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------------
Household Durables -- 0.8%
42,400 Fortune Brands, Inc. $ 2,762,360
- -------------------------------------------------------------------
Household Products -- 1.5%
104,100 Kimberly-Clark Corp. 5,497,521
- -------------------------------------------------------------------
Insurance -- 5.9%
117,400 American International Group, Inc. 7,141,442
76,200 The Hartford Financial Services Group, Inc. 4,183,380
103,000 Loews Corp. 4,429,000
107,400 The St. Paul Cos., Inc. 4,095,162
23,600 XL Capital Ltd. 1,640,200
- -------------------------------------------------------------------
21,489,184
- -------------------------------------------------------------------
Media -- 5.1%
Comcast Corp.:
112,200 Class A Shares* 3,805,824
123,000 Special Class A Shares* 4,012,260
505,700 Liberty Media Corp., Class A Shares* 5,102,513
191,500 The News Corp. Ltd., Preferred Shares ADR 5,649,250
- -------------------------------------------------------------------
18,569,847
- -------------------------------------------------------------------
Metals and Mining -- 2.1%
245,800 Alcoa Inc. 7,759,906
- -------------------------------------------------------------------
Multiline Retail -- 3.7%
116,500 Costco Wholesale Corp.* 4,120,605
82,800 Federated Department Stores, Inc. 3,937,140
141,300 Target Corp. 5,615,262
- -------------------------------------------------------------------
13,673,007
- -------------------------------------------------------------------
Oil and Gas -- 5.4%
163,900 BP PLC, Sponsored ADR 6,946,082
88,200 ChevronTexaco Corp. 6,553,260
82,100 Total SA 6,409,547
- -------------------------------------------------------------------
19,908,889
- -------------------------------------------------------------------
Paper and Forest Products -- 1.6%
149,700 International Paper Co. 5,890,695
- -------------------------------------------------------------------
Pharmaceuticals -- 5.6%
63,200 Merck & Co. Inc. 2,796,600
286,800 Pfizer Inc. 9,062,880
268,300 Schering-Plough Corp. 4,096,941
104,900 Wyeth 4,630,286
- -------------------------------------------------------------------
20,586,707
- -------------------------------------------------------------------
See Notes to Financial Statements.
17 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------------------------
Real Estate -- 1.5%
190,000 Equity Office Properties Trust $ 5,321,900
- ----------------------------------------------------------------------------------------------
Specialty Retail -- 1.2%
120,100 The Home Depot, Inc. 4,452,107
- ----------------------------------------------------------------------------------------------
Tobacco -- 3.6%
200,200 Altria Group, Inc. 9,309,300
82,600 R.J. Reynolds Tobacco Holdings, Inc. 3,967,278
- ----------------------------------------------------------------------------------------------
13,276,578
- ----------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.4%
694,700 AT&T Wireless Services Inc.* 5,036,575
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $343,693,651) 359,407,706
- ----------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.9%
$6,963,000 Merrill Lynch & Co., Inc., 0.990% due 11/3/03; Proceeds at maturity --
$6,963,574; (Fully collateralized by U.S. Treasury Notes and
Bonds, 1.875% to 3.625% due 7/15/12 to 4/15/28;
Market value -- $7,102,304) (Cost -- $6,963,000) 6,963,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $350,656,651**) $366,370,706
- ----------------------------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $352,551,123.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
18 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------------
COMMON STOCK -- 88.0%
Aerospace and Defense -- 6.7%
443,800 Lockheed Martin Corp. $ 20,574,568
184,900 Northrop Grumman Corp. 16,530,060
- -------------------------------------------------------------------
37,104,628
- -------------------------------------------------------------------
Air Freight and Couriers -- 0.1%
6,300 CNF Inc. 220,626
7,100 United Parcel Service, Inc., Class B Shares 514,892
- -------------------------------------------------------------------
735,518
- -------------------------------------------------------------------
Auto Components -- 0.0%
260 Gentex Corp.+ 10,153
- -------------------------------------------------------------------
Automobiles -- 0.4%
94,700 Monaco Coach Corp.+* 2,281,323
- -------------------------------------------------------------------
Banks -- 0.4%
7,700 Bank of America Corp. 583,121
418 Fifth Third Bancorp 24,227
69,251 Sovereign Bancorp, Inc. 1,441,113
- -------------------------------------------------------------------
2,048,461
- -------------------------------------------------------------------
Beverages -- 1.8%
219,200 The Coca-Cola Co. 10,170,880
- -------------------------------------------------------------------
Commercial Services and Supplies -- 1.0%
227,400 Robert Half International Inc.* 5,368,914
- -------------------------------------------------------------------
Communications Equipment -- 0.2%
5,100 Alcatel SA, Sponsored ADR+ 67,218
112,900 CIENA Corp.* 723,689
10,900 Cisco Systems, Inc.* 228,682
- -------------------------------------------------------------------
1,019,589
- -------------------------------------------------------------------
Computers and Peripherals -- 0.7%
14,600 Applied Films Corp.+* 457,710
51,010 Dell Inc.* 1,842,481
14,100 EMC Corp.* 195,144
30,800 Seagate Technology 707,784
50,400 Western Digital Corp.* 677,880
- -------------------------------------------------------------------
3,880,999
- -------------------------------------------------------------------
Construction and Engineering -- 0.1%
25,000 Granite Construction Inc.+ 499,750
- -------------------------------------------------------------------
Construction Materials -- 0.2%
67,500 CRH PLC 1,212,398
- -------------------------------------------------------------------
See Notes to Financial Statements.
19 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------
Diversified Financials -- 3.3%
3,700 The Charles Schwab Corp. $ 50,172
500 The Goldman Sachs Group, Inc. 46,950
64,400 Moody's Corp. 3,724,252
4,500 Morgan Stanley 246,915
361,450 SLM Corp. 14,154,382
- -----------------------------------------------------------
18,222,671
- -----------------------------------------------------------
Diversified Telecommunication Services -- 10.0%
1,243,100 SBC Communications Inc. 29,809,538
756,300 Verizon Communications Inc. 25,411,680
- -----------------------------------------------------------
55,221,218
- -----------------------------------------------------------
Electrical Equipment -- 0.8%
200,100 American Power Conversion Corp. 4,048,023
4,500 Nitto Denko Corp. 235,810
- -----------------------------------------------------------
4,283,833
- -----------------------------------------------------------
Electronic Equipment and Instruments -- 0.2%
16,900 Diebold, Inc. 964,314
- -----------------------------------------------------------
Energy Equipment and Services -- 1.7%
25,100 BJ Services Co.* 823,531
47,200 ENSCO International Inc. 1,243,720
174,400 Pride International, Inc.* 2,856,672
150,200 Rowan Cos., Inc.* 3,597,290
18,000 Schlumberger Ltd. 845,460
- -----------------------------------------------------------
9,366,673
- -----------------------------------------------------------
Health Care Equipment and Supplies -- 1.8%
284,500 Biomet, Inc. 10,202,170
- -----------------------------------------------------------
Hotels, Restaurants and Leisure -- 1.3%
223,000 McDonald's Corp. 5,577,230
49,600 Shuffle Master, Inc.+* 1,509,824
- -----------------------------------------------------------
7,087,054
- -----------------------------------------------------------
Household Durables -- 0.5%
47,850 Garmin Ltd.+ 2,393,936
8,000 Sharp Corp. 125,765
- -----------------------------------------------------------
2,519,701
- -----------------------------------------------------------
Household Products -- 5.9%
98,600 Colgate-Palmolive Co. 5,244,534
279,300 The Procter & Gamble Co. 27,452,397
- -----------------------------------------------------------
32,696,931
- -----------------------------------------------------------
See Notes to Financial Statements.
20 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------
Industrial Conglomerates -- 5.5%
157,800 3M Co. $ 12,445,686
83,500 General Electric Co. 2,422,335
556,900 Tyco International Ltd. 11,628,072
82,700 Yukos Oil Co., Sponsored ADR+ 3,820,740
- -------------------------------------------------------------
30,316,833
- -------------------------------------------------------------
Insurance -- 3.1%
Berkshire Hathaway Inc.:
111 Class A Shares* 8,636,910
3,327 Class B Shares* 8,625,247
- -------------------------------------------------------------
17,262,157
- -------------------------------------------------------------
Internet and Catalog Retail -- 0.0%
200 Amazon.com, Inc.* 10,884
- -------------------------------------------------------------
Internet Software and Services -- 0.0%
600 Yahoo! Inc.* 26,220
- -------------------------------------------------------------
IT Consulting and Services -- 0.8%
111,000 Computer Sciences Corp.* 4,397,820
- -------------------------------------------------------------
Leisure Equipment and Products -- 0.3%
87,800 Hasbro, Inc. 1,914,040
- -------------------------------------------------------------
Machinery -- 5.3%
111,600 AGCO Corp.* 2,008,800
93,800 Caterpillar Inc. 6,873,664
11,700 Cummins Inc.+ 554,580
22,500 Deere & Co. 1,363,950
114,900 Ingersoll-Rand Co., Class A Shares 6,939,960
163,400 ITT Industries, Inc. 11,109,566
35,800 The Manitowoc Co., Inc.+ 776,860
100 Navistar International Corp.* 4,043
- -------------------------------------------------------------
29,631,423
- -------------------------------------------------------------
Media -- 3.8%
455,400 British Sky Broadcasting Group PLC* 4,942,948
50,500 Dow Jones & Co., Inc. 2,624,485
68,100 General Motors Corp., Class H Shares* 1,118,883
19,200 The News Corp. Ltd., Sponsored ADR 684,480
78,006 Pixar, Inc.+* 5,367,593
76,923 Viacom Inc., Class B Shares 3,066,920
155,200 The Walt Disney Co. 3,513,728
- -------------------------------------------------------------
21,319,037
- -------------------------------------------------------------
Metals and Mining -- 3.2%
8,000 Apex Silver Mines Ltd.* 107,520
17,600 Arch Coal, Inc.+ 431,200
See Notes to Financial Statements.
21 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------------
Metals and Mining -- 3.2% (continued)
135,900 Freeport-McMoRan Copper & Gold, Inc., Class B Shares+ $ 5,266,125
59,900 Newmont Mining Corp. 2,622,422
10,700 Nucor Corp. 586,681
31,900 Peabody Energy Corp. 1,063,227
123,200 Phelps Dodge Corp.* 7,606,368
- -----------------------------------------------------------------------------
17,683,543
- -----------------------------------------------------------------------------
Multiline Retail -- 0.5%
86,800 Nordstrom, Inc. 2,646,532
2,300 Wal-Mart Stores Inc. 135,585
- -----------------------------------------------------------------------------
2,782,117
- -----------------------------------------------------------------------------
Oil and Gas -- 5.5%
134,860 Apache Corp. 9,402,439
94,700 BP PLC, Sponsored ADR 4,013,386
87,440 Burlington Resources Inc. 4,253,082
153,400 Chesapeake Energy Corp.+ 1,830,062
65,200 Murphy Oil Corp. 3,845,496
27,500 OAO LUKOIL, Sponsored ADR 2,235,750
100,100 Teekay Shipping Corp.+ 4,817,813
- -----------------------------------------------------------------------------
30,398,028
- -----------------------------------------------------------------------------
Personal Products -- 0.5%
40,600 Avon Products, Inc. 2,759,176
- -----------------------------------------------------------------------------
Pharmaceuticals --15.9%
72,000 Abbott Laboratories 3,068,640
84,400 AstraZeneca PLC, Sponsored ADR+ 4,024,192
105,100 Barr Laboratories, Inc.* 8,068,527
718,500 Johnson & Johnson 36,162,105
688,300 Merck & Co. Inc. 30,457,275
96,600 Novartis AG, Sponsored ADR 3,706,542
26,300 Pfizer Inc. 831,080
28,500 Pharmaceutical Resources, Inc.* 2,059,980
- -----------------------------------------------------------------------------
88,378,341
- -----------------------------------------------------------------------------
Road and Rail -- 0.5%
18,000 CSX Corp. 572,760
31,200 Union Pacific Corp. 1,953,120
- -----------------------------------------------------------------------------
2,525,880
- -----------------------------------------------------------------------------
Semiconductor Equipment and Products -- 0.0%
306 GlobespanVirata, Inc.+* 1,885
7,500 Integrated Circuit Systems, Inc.* 251,775
- -----------------------------------------------------------------------------
253,660
- -----------------------------------------------------------------------------
See Notes to Financial Statements.
22 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------------------------
Software -- 3.7%
154,300 Autodesk, Inc. $ 2,970,275
62,700 BEA Systems, Inc.* 871,530
648,100 Microsoft Corp. 16,947,815
- -----------------------------------------------------------------------------------------
20,789,620
- -----------------------------------------------------------------------------------------
Specialty Retail -- 0.5%
17,900 Monro Muffler Brake, Inc.* 588,015
10,800 PETsMART, Inc. 276,588
63,500 Staples, Inc.* 1,703,070
- -----------------------------------------------------------------------------------------
2,567,673
- -----------------------------------------------------------------------------------------
Textiles and Apparel -- 0.3%
23,800 NIKE, Inc., Class B Shares 1,520,820
- -----------------------------------------------------------------------------------------
Tobacco -- 0.3%
47,300 UST Inc. 1,609,146
- -----------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.2%
321,200 Vodafone Group PLC, Sponsored ADR 6,793,380
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $483,803,746) 487,836,976
- -----------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.3%
22,400 Chesapeake Energy Corp., 6.000% Cumulative Convertible
(Cost -- $1,337,952) 1,531,600
- -----------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------
CONVERTIBLE BONDS -- 0.0%
$ 320,000 CIENA Corp., Notes, 3.750% due 2/1/08
(Cost -- $278,277) 280,800
- -----------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $485,419,975) 489,649,376
- -----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 11.7%
64,949,000 State Street Bank and Trust Co., 0.940% due 11/3/03; Proceeds at
maturity -- $64,954,088; (Fully collateralized by U.S. Treasury
Bonds, 6.000% due 2/15/26; Market value -- $66,250,650)
(Cost -- $64,949,000) 64,949,000
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $550,368,975**) $554,598,376
- -----------------------------------------------------------------------------------------
+ All or a portion of this security is on loan (See Note 6).
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $552,993,225.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
23 Travelers Series Fund Inc. | 2003 Annual Report
LOANED SECURITIES COLLATERAL OCTOBER 31, 2003
STRATEGIC EQUITY PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------
$24,325,846 State Street Navigator Securities Lending Trust Prime Portfolio
(Cost -- $24,325,846) $24,325,846
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
24 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------------
COMMON STOCK -- 95.4%
Air Freight and Couriers -- 1.6%
20,600 United Parcel Service, Inc., Class B Shares $ 1,493,912
- ------------------------------------------------------------------
Banks -- 2.6%
26,800 Wachovia Corp. 1,229,316
22,700 Wells Fargo & Co. 1,278,464
- ------------------------------------------------------------------
2,507,780
- ------------------------------------------------------------------
Beverages -- 2.1%
15,900 Anheuser-Busch Cos., Inc. 783,234
25,200 PepsiCo, Inc. 1,205,064
- ------------------------------------------------------------------
1,988,298
- ------------------------------------------------------------------
Biotechnology -- 2.0%
15,000 Amgen Inc.* 926,400
16,300 Genzyme Corp.* 748,170
3,300 Gilead Sciences, Inc.* 180,114
- ------------------------------------------------------------------
1,854,684
- ------------------------------------------------------------------
Chemicals -- 2.0%
19,000 Praxair, Inc. 1,322,020
14,100 Rohm and Haas Co. 554,130
- ------------------------------------------------------------------
1,876,150
- ------------------------------------------------------------------
Communications Equipment -- 4.7%
144,300 Cisco Systems, Inc.* 3,027,414
36,000 Comverse Technology, Inc.* 649,440
44,500 Nokia Oyj, Sponsored ADR 756,055
- ------------------------------------------------------------------
4,432,909
- ------------------------------------------------------------------
Computers and Peripherals -- 3.1%
48,100 Dell Inc.* 1,737,372
52,600 Hewlett-Packard Co. 1,173,506
- ------------------------------------------------------------------
2,910,878
- ------------------------------------------------------------------
Diversified Financials -- 9.5%
26,400 American Express Co. 1,238,952
7,400 Capital One Financial Corp. 449,920
14,100 Countrywide Financial Corp. 1,482,192
14,100 Fannie Mae 1,010,829
34,550 J.P. Morgan Chase & Co. 1,240,345
13,700 Lehman Brothers Holdings Inc. 986,400
16,200 MBNA Corp. 400,950
26,200 Merrill Lynch & Co., Inc. 1,551,040
18,200 SLM Corp. 712,712
- ------------------------------------------------------------------
9,073,340
- ------------------------------------------------------------------
See Notes to Financial Statements.
25 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------
Energy Equipment and Services -- 1.2%
10,400 Schlumberger Ltd. $ 488,488
16,700 Smith International, Inc.* 621,741
- ----------------------------------------------------------------
1,110,229
- ----------------------------------------------------------------
Food Products -- 0.8%
26,000 McCormick & Co., Inc. 770,640
- ----------------------------------------------------------------
Health Care Equipment and Supplies -- 2.5%
8,500 Boston Scientific Corp.* 575,620
12,900 St. Jude Medical, Inc.* 750,264
17,100 Zimmer Holdings, Inc.* 1,091,151
- ----------------------------------------------------------------
2,417,035
- ----------------------------------------------------------------
Health Care Providers and Services -- 3.4%
9,600 Anthem, Inc.* 656,928
29,500 Caremark Rx, Inc.* 738,975
13,100 HCA Inc. 501,075
25,300 IMS Health Inc. 595,309
14,200 UnitedHealth Group, Inc. 722,496
- ----------------------------------------------------------------
3,214,783
- ----------------------------------------------------------------
Hotels, Restaurants and Leisure -- 3.6%
17,300 Carnival Corp. 603,943
26,900 International Game Technology 880,975
21,800 McDonald's Corp. 545,218
21,000 Starbucks Corp.* 663,600
21,900 Starwood Hotels & Resorts Worldwide, Inc. 738,687
- ----------------------------------------------------------------
3,432,423
- ----------------------------------------------------------------
Household Products -- 1.3%
12,600 The Procter & Gamble Co. 1,238,454
- ----------------------------------------------------------------
Industrial Conglomerates -- 1.8%
60,200 General Electric Co. 1,746,402
- ----------------------------------------------------------------
Insurance -- 1.1%
17,725 American International Group, Inc. 1,078,212
- ----------------------------------------------------------------
Internet Software and Services -- 1.1%
23,700 Yahoo! Inc.* 1,035,690
- ----------------------------------------------------------------
IT Consulting and Services -- 0.7%
22,500 SunGard Data Systems Inc.* 631,125
- ----------------------------------------------------------------
Machinery -- 4.6%
16,000 Danaher Corp. 1,325,600
11,000 Deere & Co. 666,820
9,300 Eaton Corp. 932,232
See Notes to Financial Statements.
26 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------------
Machinery -- 4.6% (continued)
15,100 Ingersoll-Rand Co., Class A Shares $ 912,040
6,900 PACCAR Inc. 544,824
- ----------------------------------------------------------------------------------
4,381,516
- ----------------------------------------------------------------------------------
Media -- 4.4%
30,600 Clear Channel Communications Inc. 1,249,092
41,200 Fox Entertainment Group, Inc., Class A Shares* 1,141,240
9,900 Omnicom Group Inc. 790,020
65,100 Time Warner Inc.* 995,379
- ----------------------------------------------------------------------------------
4,175,731
- ----------------------------------------------------------------------------------
Multiline Retail -- 3.2%
29,000 Dollar General Corp. 651,630
11,600 Federated Department Stores, Inc. 551,580
30,400 Wal-Mart Stores, Inc. 1,792,080
- ----------------------------------------------------------------------------------
2,995,290
- ----------------------------------------------------------------------------------
Oil and Gas -- 1.0%
22,900 BP PLC, Sponsored ADR 970,502
- ----------------------------------------------------------------------------------
Pharmaceuticals -- 7.3%
6,500 Allergan, Inc. 491,530
16,100 Eli Lilly and Co. 1,072,582
28,600 Johnson & Johnson 1,439,438
63,450 Pfizer Inc. 2,005,020
17,000 Teva Pharmaceutical Industries Ltd., Sponsored ADR 967,130
22,400 Wyeth 988,736
- ----------------------------------------------------------------------------------
6,964,436
- ----------------------------------------------------------------------------------
Semiconductor Equipment and Products -- 10.4%
17,600 Analog Devices, Inc.* 780,208
41,800 Applied Materials, Inc.* 976,866
43,300 ASML Holding N.V., New York Registered Shares* 759,915
114,600 Intel Corp. 3,787,530
28,700 Lam Research Corp.* 824,838
18,700 Microchip Tehnology Inc. 611,677
12,000 QLogic Corp.* 672,600
65,572 Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR* 725,226
27,300 Texas Instruments Inc. 789,516
- ----------------------------------------------------------------------------------
9,928,376
- ----------------------------------------------------------------------------------
Software -- 8.2%
17,700 Adobe Systems Inc. 775,968
51,000 Amdocs Ltd.* 1,094,460
9,700 Electronic Arts Inc.* 960,688
70,600 Microsoft Corp. 1,846,190
See Notes to Financial Statements.
27 Travelers Series Fund Inc. | 2003 Annual Report
SCHEDULES OF INVESTMENTS (CONTINUED) OCTOBER 31, 2003
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
- -----------------------------------------------------------------------------
Software -- 8.2% (continued)
40,900 Oracle Corp.* $ 489,164
20,600 SAP AG, Sponsored ADR 752,724
16,800 Symantec Corp.* 1,119,720
22,100 VERITAS Software Corp.* 798,915
- -----------------------------------------------------------------------------
7,837,829
- -----------------------------------------------------------------------------
Specialty Retail -- 7.8%
18,700 Bed Bath & Beyond Inc.* 789,888
37,400 Best Buy Co., Inc. 2,180,794
18,300 The Gap, Inc. 349,164
38,500 The Home Depot, Inc. 1,427,195
23,400 Lowe's Cos., Inc. 1,378,962
49,600 Staples, Inc.* 1,330,272
- -----------------------------------------------------------------------------
7,456,275
- -----------------------------------------------------------------------------
Textiles and Apparel -- 3.4%
46,300 Coach, Inc.* 1,642,261
14,500 Liz Claiborne, Inc. 534,905
27,400 Reebok International Ltd. 1,067,230
- -----------------------------------------------------------------------------
3,244,396
- -----------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $78,228,484) 90,767,295
- -----------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.6%
Agency Discount Notes -- 4.6%
$4,380,000 Federal National Mortgage Association, Discount Notes,
due 11/3/03 (Cost -- $4,379,769) 4,379,769
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $82,608,253**) $95,147,064
- -----------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $84,592,568.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
28 Travelers Series Fund Inc. | 2003 Annual Report
STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2003
Smith Barney
Large Cap Strategic Van Kampen
Value Equity Enterprise
Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost -- $343,693,651,
$485,419,975 and $78,228,484, respectively) $359,407,706 $ 489,649,376 $ 90,767,295
Short-term investments, at
value (Cost -- $6,963,000, $64,949,000 and
$4,379,769, respectively) 6,963,000 64,949,000 4,379,769
Loaned securities collateral, at
value (Cost -- $24,325,846) (Note 6) -- 24,325,846 --
Cash 726 944 761
Dividends and interest receivable 478,273 1,385,614 50,006
Receivable for securities sold -- 13,793,961 2,883,690
Prepaid expenses -- 4,205 1,583
Other receivables 3,802 45,133 4,592
- ---------------------------------------------------------------------------------------------
Total Assets 366,853,507 594,154,079 98,087,696
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payable for Fund shares reacquired 412,065 486,616 68,829
Management fees payable 199,190 358,471 56,925
Payable for loaned securities collateral (Note 6) -- 24,325,846 --
Payable for securities purchased -- 19,376,473 1,293,012
Payable for open forward foreign currency
contracts (Note 5) -- 920 --
Accrued expenses 50,815 54,921 38,490
- ---------------------------------------------------------------------------------------------
Total Liabilities 662,070 44,603,247 1,457,256
- ---------------------------------------------------------------------------------------------
Total Net Assets $366,191,437 $ 549,550,832 $ 96,630,440
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 233 $ 362 $ 88
Capital paid in excess of par value 411,276,868 810,713,116 163,746,433
Undistributed net investment income 5,405,195 920 77,829
Accumulated net realized loss from investment
transactions (66,204,914) (265,392,412) (79,732,721)
Net unrealized appreciation of investments and
foreign currencies 15,714,055 4,228,846 12,538,811
- ---------------------------------------------------------------------------------------------
Total Net Assets $366,191,437 $ 549,550,832 $ 96,630,440
- ---------------------------------------------------------------------------------------------
Shares Outstanding 23,347,455 36,245,051 8,761,608
- ---------------------------------------------------------------------------------------------
Net Asset Value $15.68 $15.16 $11.03
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
29 Travelers Series Fund Inc. | 2003 Annual Report
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2003
Smith Barney
Large Cap Strategic Van Kampen
Value Equity Enterprise
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 8,661,972 $ 3,136,040 $ 838,734
Interest 156,351 205,627 39,024
Less: Foreign withholding tax (9,662) (15,492) (4,465)
- -------------------------------------------------------------------------------------
Total Investment Income 8,808,661 3,326,175 873,293
- -------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 2,256,242 4,111,462 659,761
Audit and legal 53,521 55,460 35,587
Shareholder communications 38,534 114,781 10,408
Custody 25,629 28,695 34,506
Directors' fees 11,651 12,973 4,605
Shareholder servicing fees 5,383 5,418 5,446
Other 9,917 7,727 2,036
- -------------------------------------------------------------------------------------
Total Expenses 2,400,877 4,336,516 752,349
- -------------------------------------------------------------------------------------
Net Investment Income (Loss) 6,407,784 (1,010,341) 120,944
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES (NOTES 3 AND 5):
Realized Gain (Loss) From:
Investment transactions (24,803,070) 43,901,997 (6,797,326)
Foreign currency transactions -- (2,901) --
- -------------------------------------------------------------------------------------
Net Realized Gain (Loss) (24,803,070) 43,899,096 (6,797,326)
- -------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation From:
Investments 85,797,301 53,566,638 21,950,369
Foreign currencies -- (555) --
- -------------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 85,797,301 53,566,083 21,950,369
- -------------------------------------------------------------------------------------
Net Gain on Investments and
Foreign Currencies 60,994,231 97,465,179 15,153,043
- -------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 67,402,015 $96,454,838 $ 15,273,987
- -------------------------------------------------------------------------------------
See Notes to Financial Statements.
30 Travelers Series Fund Inc. | 2003 Annual Report
STATEMENTS OF CHANGES IN NET ASSETS
For the Years
Ended October 31,
Smith Barney Large Cap Value Portfolio 2003 2002
- ---------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 6,407,784 $ 7,406,464
Net realized loss (24,803,070) (39,737,030)
Increase (decrease) in net unrealized appreciation 85,797,301 (76,098,584)
- ---------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 67,402,015 (108,429,150)
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (8,408,520) (7,859,263)
- ---------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (8,408,520) (7,859,263)
- ---------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 5,713,731 35,752,411
Net asset value of shares issued for reinvestment
of dividends 8,408,520 7,859,263
Cost of shares reacquired (53,330,305) (84,617,623)
- ---------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (39,208,054) (41,005,949)
- ---------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 19,785,441 (157,294,362)
NET ASSETS:
Beginning of year 346,405,996 503,700,358
- ---------------------------------------------------------------------------------
End of year* $366,191,437 $ 346,405,996
- ---------------------------------------------------------------------------------
* Includes undistributed net investment income of: $5,405,195 $7,405,931
- ---------------------------------------------------------------------------------
See Notes to Financial Statements.
31 Travelers Series Fund Inc. | 2003 Annual Report
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Years
Ended October 31,
Strategic Equity Portfolio 2003 2002
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ (1,010,341) $ 1,328,967
Net realized gain (loss) 43,899,096 (297,161,941)
Increase in net unrealized appreciation 53,566,083 111,121,539
- ---------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 96,454,838 (184,711,435)
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (650,759) (2,925,061)
- ---------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (650,759) (2,925,061)
- ---------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 6,126,116 10,626,631
Net asset value of shares issued for reinvestment of dividends 650,759 2,925,061
Cost of shares reacquired (68,747,111) (154,719,589)
- ---------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (61,970,236) (141,167,897)
- ---------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 33,833,843 (328,804,393)
NET ASSETS:
Beginning of year 515,716,989 844,521,382
- ---------------------------------------------------------------------------------------------
End of year* $549,550,832 $ 515,716,989
- ---------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $920 $646,781
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
32 Travelers Series Fund Inc. | 2003 Annual Report
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Years
Ended October 31,
Van Kampen Enterprise Portfolio 2003 2002
- ---------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 120,944 $ 429,129
Net realized loss (6,797,326) (36,235,983)
Increase in net unrealized appreciation 21,950,369 8,333,675
- --------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 15,273,987 (27,473,179)
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (471,638) (417,888)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (471,638) (417,888)
- --------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 966,979 1,052,862
Net asset value of shares issued for reinvestment of dividends 471,638 417,888
Cost of shares reacquired (19,790,502) (38,261,601)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (18,351,885) (36,790,851)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets (3,549,536) (64,681,918)
NET ASSETS:
Beginning of year 100,179,976 164,861,894
- --------------------------------------------------------------------------------------------
End of year* $ 96,630,440 $100,179,976
- --------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $77,829 $428,523
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
33 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
The Smith Barney Large Cap Value Portfolio, Strategic Equity Portfolio
(formerly known as Alliance Growth Portfolio), and Van Kampen Enterprise
Portfolio ("Fund(s)") are separate diversified investment funds of the
Travelers Series Fund Inc. ("Company"). The Company, 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: AIM Capital Appreciation, Smith Barney International
All Cap Growth, Travelers Managed Income, Pioneer Strategic Income (formerly
known as Putnam Diversified Income), Salomon Brothers Strategic Total Return
Bond, Smith Barney High Income, MFS Total Return, Smith Barney Money Market,
Smith Barney Large Capitalization Growth, Smith Barney Mid Cap Core, Smith
Barney Aggressive Growth and SB Adjustable Rate Income Portfolios. Shares of
the Funds are offered only to insurance company separate accounts which fund
certain variable annuity and variable life insurance contracts. The financial
statements and financial highlights for the other funds are presented in
separate shareholder reports.
The significant accounting policies consistently followed by the Funds are: (a)
security transactions are accounted for on trade date; (b) securities traded on
national securities markets are valued at the closing prices on such markets;
securities for which no sales price was reported and U.S. government agencies
and obligations are valued at the mean between bid and asked prices; securities
listed on the NASDAQ National Market System for which market quotations are
available are valued at the official closing price or, if there is no official
closing price on that day, at the last sale price; (c) securities for which
market quotations are not available will be valued in good faith at fair value
by or under the direction of the Board of Directors; (d) securities maturing
within 60 days are valued at cost plus accreted discount, or minus amortized
premium, which approximates value; (e) dividend income is recorded on the
ex-dividend date; foreign dividends are recorded on the ex-dividend date or as
soon as practical after the Funds determine the existence of a dividend
declaration after exercising reasonable due diligence; (f ) interest income,
adjusted for amortization of premium and accretion of discount, is recorded on
an accrual basis; (g) dividends and distributions to shareholders are recorded
on the ex-dividend date; the Funds distribute dividends and capital gains, if
any, at least annually; (h) gains or losses on
34 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 in foreign currencies are translated
into U.S. dollars based on the rate of exchange of such currencies against U.S.
dollars on the date of valuation. Purchases and sales of securities, and income
and expenses are translated at the rate of exchange quoted on the respective
date that such transactions are recorded. Differences between income or expense
amounts recorded and collected or paid are adjusted when reported by the
custodian bank; ( j) the character of income and gains to be distributed is
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America. At
October 31, 2003, reclassifications were made to the capital accounts of
Strategic Equity Portfolio to reflect permanent book/tax differences and income
and gains available for distributions under income tax regulations.
Accordingly, accumulated net investment loss amounting to $1,181,592 was
reclassified to paid-in capital. Net investment income, net realized gains and
net assets were not affected by this change; (k) the Funds intend to comply
with the requirements of the Internal Revenue Code of 1986, as amended,
pertaining to regulated investment companies and to make distributions of
taxable income sufficient to relieve it from substantially all Federal income
and excise taxes; and (l) estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Management Agreement and Transactions with Affiliated Persons
Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary
of Citigroup Inc. ("Citigroup"), acts as the investment manager of the Smith
Barney Large Cap Value Portfolio ("SBLCV"). SBLCV pays SBFM a management fee
calculated at an annual rate of 0.65% of the average daily net assets of SBLCV.
Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SBFM, acts as the
investment manager of the Strategic Equity Portfolio ("SEP") and the Van Kampen
Enterprise Portfolio ("VKEP"). SEP and VKEP pay TIA a management fee calculated
at an annual rate of 0.80% and 0.70%, respectively, of the average daily net
assets of SEP and VKEP. These fees are calculated daily and paid monthly.
35 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the period from November 1, 2002 through September 14, 2003, TIA had
entered into a sub-advisory agreement with Alliance Capital Management L.P.
("Alliance Capital"). Pursuant to the sub-advisory agreement, Alliance Capital
was responsible for the day-to-day portfolio operations and investment
decisions and was compensated by TIA for such services at an annual rate of
0.375% of the average daily net assets of SEP.
Effective September 15, 2003, the sub-advisory agreement with Alliance Capital
was terminated and TIA entered into a new sub-advisory agreement with Fidelity
Management & Research Co. ("FMR"), which was approved by shareholders on August
20, 2003. Pursuant to the new sub-advisory agreement, FMR is responsible for
the day-to-day portfolio operations and investment decisions and is compensated
by TIA for such services at an annual rate of 0.45% of the first $250 million
of SEP's average daily net assets, 0.40% on the next $500 million of SEP's
average daily net assets, and 0.35% of SEP's average daily net assets in excess
of $750 million.
In addition, TIA has entered into a sub-advisory agreement with Van Kampen
Asset Management Inc. ("VKAM"). Pursuant to the sub-advisory agreement, VKAM is
responsible for the day-to-day portfolio operations and investment decisions
and is compensated by TIA for such services at an annual rate of 0.325% of the
average daily net assets of VKEP.
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 SEP and VKEP.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent. PFPC Inc. ("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 year ended October 31, 2003, each Fund paid transfer agent fees of $5,000
to CTB.
For the year ended October 31, 2003, Citigroup Global Markets Inc. (formerly
known as Salomon Smith Barney Inc.), another indirect wholly-owned subsidiary
of Citigroup, and its affiliates received brokerage commissions of $16,280,
$55,189 and $24,297 from SBLCV, SEP and VKEP, respectively.
36 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Most of the officers and one Director of the Company are employees of Citigroup
or its affiliates.
3. Investments
During the year ended October 31, 2003, the aggregate cost of purchases and
proceeds from sales of investments (including maturities of long-term
investments, but excluding short-term investments) were as follows:
SBLCV SEP VKEP
- --------------------------------------------------------------------------
Purchases $320,700,718 $831,680,741 $111,095,487
- --------------------------------------------------------------------------
Sales 356,133,117 944,351,470 131,988,492
- -------------------------------------------------------------------------
At October 31, 2003, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were as follows:
SBLCV SEP VKEP
- -----------------------------------------------------------------------------
Gross unrealized appreciation $ 30,562,040 $ 16,498,047 $ 13,434,552
Gross unrealized depreciation (16,742,457) (14,892,896) (2,880,056)
- -----------------------------------------------------------------------------
Net unrealized appreciation $ 13,819,583 $ 1,605,151 $ 10,554,496
- ----------------------------------------------------------------------------
4. Repurchase Agreements
The Funds purchase (and the 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 (plus accrued interest) of the collateral in
amounts at least equal to the repurchase price.
At October 31, 2003, VKEP did not have any repurchase agreements outstanding.
5. Forward Foreign Currency Contracts
SEP may from time to time enter into forward foreign currency contracts. A
forward foreign currency contract is an agreement between two parties to buy
and sell a currency at a set price on a future date. The contract is
marked-to-market daily and the change in value is recorded by the Fund as an
unrealized gain or loss. When a forward foreign currency contract is
extinguished, through either delivery or offset by entering into another
forward foreign currency contract, the Fund records a realized gain or loss
equal to the difference between the
37 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
value of the contract at the time it was opened and the value of the contract
at the time it was extinguished or offset. The Fund bears the market risk that
arises from changes in foreign currency exchange rates and the credit risk
should a counterparty be unable to meet the terms of such contracts.
At October 31, 2003, SEP had open forward foreign currency contracts as
described below. The unrealized loss on the contracts reflected in the
accompanying financial statements were as follows:
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Loss
---------------------------------------------------------------------------
Contracts to Buy:
British Pound 116,255 $197,162 11/3/03 $(610)
---------------------------------------------------------------------------
Contracts to Sell:
Euro 142,200 165,102 11/5/03 (310)
---------------------------------------------------------------------------
Net Unrealized Loss on Open Forward
Foreign Currency Contracts $(920)
---------------------------------------------------------------------------
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 or high quality money market instruments that are
maintained at all times in an amount at least equal to the current market value
of the loaned securities, plus a margin depending on the type of securities
loaned. The Funds maintain exposure for the risk of any losses in the
investment of amounts received as collateral.
At October 31, 2003, SEP had loaned securities having a market value of
$24,004,475. SEP received cash collateral amounting to $24,325,846 which was
invested in the State Street Navigator Securities Lending Trust Prime Portfolio.
For the year ended October 31, 2003, income earned from securities lending by
SEP and VKEP was $55,282 and $3,006, respectively.
At October 31, 2003, SBLCV and VKEP did not have any securities on loan.
38 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. Capital Shares
At October 31, 2003, the Company had six billion shares authorized with a par
value of $0.00001 per share. Each share of a Fund represents an equal
proportionate interest in that Fund with each other share of the same Fund
and has an equal entitlement to any dividends and distributions made by
the Fund.
Transactions in shares of each Fund were as follows:
Year Ended Year Ended
October 31, 2003 October 31, 2002
- ------------------------------------------------------------------------
Smith Barney Large Cap Value Portfolio
Shares sold 401,980 1,988,862
Shares issued on reinvestment 639,431 597,662
Shares reacquired (3,856,055) (5,253,318)
- ------------------------------------------------------------------------
Net Decrease (2,814,644) (2,666,794)
- ------------------------------------------------------------------------
Strategic Equity Portfolio
Shares sold 470,412 673,389
Shares issued on reinvestment 53,826 232,148
Shares reacquired (5,225,885) (10,631,856)
- ------------------------------------------------------------------------
Net Decrease (4,701,647) (9,726,319)
- ------------------------------------------------------------------------
Van Kampen Enterprise Portfolio
Shares sold 93,737 86,645
Shares issued on reinvestment 51,943 44,790
Shares reacquired (2,038,763) (3,442,151)
- ------------------------------------------------------------------------
Net Decrease (1,893,083) (3,310,716)
- ------------------------------------------------------------------------
8. Capital Loss Carryforward
At October 31, 2003, SBLCV, SEP and VKEP had, for Federal income tax purposes,
approximately $64,310,000, $262,768,000 and $77,748,000, respectively, of
unused capital loss carryforwards available to offset future capital gains. To
the extent that these carryforward losses are used to offset capital gains, it
is probable that the gains so offset will not be distributed.
The amount and year of expiration for each carryforward loss is indicated
below. Expiration occurs on October 31 of the year indicated:
Fund 2009 2010 2011
---------------------------------------------------------------------------
Smith Barney Large Cap Value Portfolio $ 1,588,000 $ 39,572,000 $23,150,000
---------------------------------------------------------------------------
Strategic Equity Portfolio -- 262,768,000 --
---------------------------------------------------------------------------
Van Kampen Enterprise Portfolio 34,852,000 34,687,000 8,209,000
---------------------------------------------------------------------------
39 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
9. Income Tax Information and Distributions to Shareholders
At October 31, 2003, the tax basis components of distributable earnings were:
SBLCV SEP VKEP
------------------------------------------------------------------------
Undistributed ordinary income $ 5,405,195 -- $ 77,829
------------------------------------------------------------------------
Accumulated capital losses (64,310,442) $(262,768,163) (77,748,406)
------------------------------------------------------------------------
Unrealized appreciation 13,819,583 1,605,516 10,554,496
------------------------------------------------------------------------
The difference between book basis and tax basis unrealized appreciation and
depreciation is attributable primarily to wash sale loss deferrals and
mark-to-market of derivative contracts.
The tax character of distributions paid during the year ended October 31, 2003
was:
SBLCV SEP VKEP
--------------------------------------------
Ordinary income $8,408,520 $650,759 $471,638
--------------------------------------------
10.Subsequent Event
The Funds have received the following information from Citigroup Asset
Management ("CAM"), the Citigroup business unit which includes the Funds'
Investment Manager and other investment advisory companies, all of which are
indirect, wholly-owned subsidiaries of Citigroup. CAM is reviewing its entry,
through an affiliate, into the transfer agent business in the period 1997-1999.
As CAM currently understands the facts, at the time CAM decided to enter the
transfer agent business, CAM sub-contracted for a period of five years certain
of the transfer agency services to a third party and also concluded a revenue
guarantee agreement with this sub-contractor providing that the sub-contractor
would guarantee certain benefits to CAM or its affiliates (the "Revenue
Guarantee Agreement"). In connection with the subsequent purchase of the
sub-contractor's business by an affiliate of the current sub-transfer agent
(PFPC Inc.) used by CAM on many of the funds it manages, this Revenue Guarantee
Agreement was amended eliminating those benefits in exchange for arrangements
that included a one-time payment from the sub-contractor.
The Boards of CAM-managed funds (the "Boards") were not informed of the Revenue
Guarantee Agreement with the sub-contractor at the time the Boards considered
and approved the transfer agent arrangements. Nor were the Boards informed of
the subsequent amendment to the Revenue Guarantee Agreement when that occurred.
40 Travelers Series Fund Inc. | 2003 Annual Report
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
CAM has begun to take corrective actions. CAM will pay to the applicable funds
$16 million (plus interest) that CAM and its affiliates received from the
Revenue Guarantee Agreement and its amendment. CAM also plans an independent
review to verify that the transfer agency fees charged by CAM were fairly
priced as compared to competitive alternatives. CAM is instituting new
procedures and making changes designed to ensure no similar arrangements are
entered into in the future.
CAM has briefed the SEC, the New York State Attorney General and other
regulators with respect to this matter, as well as the U.S. Attorney who is
investigating the matter. CAM is cooperating with governmental authorities on
this matter, the ultimate outcome of which is not yet determinable.
41 Travelers Series Fund Inc. | 2003 Annual Report
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Smith Barney
Large Cap Value Portfolio 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------
Net Asset Value, Beginning of Year $13.24 $17.47 $20.74 $19.83 $18.94
- -----------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.28 0.32 0.26 0.30 0.27
Net realized and unrealized gain (loss) 2.49 (4.24) (2.56) 1.34 1.38
- -----------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.77 (3.92) (2.30) 1.64 1.65
- -----------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.33) (0.31) (0.27) (0.26) (0.24)
Net realized gains -- -- (0.70) (0.47) (0.52)
- -----------------------------------------------------------------------------------
Total Distributions (0.33) (0.31) (0.97) (0.73) (0.76)
- -----------------------------------------------------------------------------------
Net Asset Value, End of Year $15.68 $13.24 $17.47 $20.74 $19.83
- -----------------------------------------------------------------------------------
Total Return/(1)/ 21.38% (22.45)% (11.58)% 8.62% 8.52%
- -----------------------------------------------------------------------------------
Net Assets, End of Year (millions) $366 $346 $504 $553 $544
- -----------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.69% 0.68% 0.67% 0.66% 0.67%
Net investment income 1.85 1.59 1.42 1.45 1.35
- -----------------------------------------------------------------------------------
Portfolio Turnover Rate 96% 68% 29% 23% 43%
- -----------------------------------------------------------------------------------
(1) Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which,
if reflected, would reduce the total returns for all periods shown.
42 Travelers Series Fund Inc. | 2003 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Strategic Equity Portfolio 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------
Net Asset Value, Beginning of Year $12.59 $16.67 $28.63 $28.35 $22.14
- -----------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) (0.03) 0.04 0.07 0.05 0.02
Net realized and unrealized gain (loss) 2.62 (4.05) (8.60) 2.66 7.79
- -----------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.59 (4.01) (8.53) 2.71 7.81
- -----------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.02) (0.07) (0.05) (0.03) (0.15)
Net realized gains -- -- (3.38) (2.40) (1.45)
- -----------------------------------------------------------------------------------
Total Distributions (0.02) (0.07) (3.43) (2.43) (1.60)
- -----------------------------------------------------------------------------------
Net Asset Value, End of Year $15.16 $12.59 $16.67 $28.63 $28.35
- -----------------------------------------------------------------------------------
Total Return/(1)/ 20.57% (24.05)% (32.05)% 9.27% 35.51%
- -----------------------------------------------------------------------------------
Net Assets, End of Year (millions) $550 $516 $845 $1,370 $1,166
- -----------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.84% 0.83% 0.82% 0.81% 0.82%
Net investment income (loss) (0.20) 0.19 0.31 0.17 0.14
- -----------------------------------------------------------------------------------
Portfolio Turnover Rate 167% 100% 46% 47% 54%
- -----------------------------------------------------------------------------------
(1) Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which,
if reflected, would reduce the total returns for all periods shown.
43 Travelers Series Fund Inc. | 2003 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Van Kampen Enterprise Portfolio 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------
Net Asset Value, Beginning of Year $ 9.40 $11.81 $25.60 $25.52 $20.56
- ------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss) 0.01 0.05 0.03 (0.06) 0.00*
Net realized and unrealized gain (loss) 1.67 (2.42) (9.05) 3.87 5.42
- ------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.68 (2.37) (9.02) 3.81 5.42
- ------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.05) (0.04) (0.00)* (0.00)* (0.07)
Net realized gains -- -- (4.77) (3.73) (0.39)
- ------------------------------------------------------------------------------------
Total Distributions (0.05) (0.04) (4.77) (3.73) (0.46)
- ------------------------------------------------------------------------------------
Net Asset Value, End of Year $11.03 $ 9.40 $11.81 $25.60 $25.52
- ------------------------------------------------------------------------------------
Total Return/(1)/ 17.93% (20.07)% (37.52)% 13.92% 26.48%
- ------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $97 $100 $165 $331 $313
- ------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.80% 0.76% 0.74% 0.72% 0.73%
Net investment income (loss) 0.13 0.30 0.18 (0.22) 0.01
- ------------------------------------------------------------------------------------
Portfolio Turnover Rate 123% 87% 107% 117% 120%
- ------------------------------------------------------------------------------------
(1) Total returns do not reflect expenses associated with the separate account
such as administrative fees, account charges and surrender charges which,
if reflected, would reduce the total returns for all periods shown.
* Amount represents less than $0.01 per share.
44 Travelers Series Fund Inc. | 2003 Annual Report
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors of
Travelers Series Fund Inc.:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the Smith Barney Large Cap Value
Portfolio, Strategic Equity Portfolio (formerly known as Alliance Growth
Portfolio) and Van Kampen Enterprise Portfolio ("Funds") of Travelers Series
Fund Inc. ("Company") as of October 31, 2003, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the five-year period then ended. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of October 31, 2003, by
correspondence with the custodian. As to securities purchased or sold but not
yet received or delivered, we performed other appropriate auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds of the Company as of October 31, 2003, and the results of their
operations for the year then ended, the changes in their net assets for each of
the years in the two-year period then ended, and financial highlights for each
of the years in the five-year period then ended, in conformity with accounting
principles generally accepted in the United States of America.
/s/ KPMG LLP
New York, New York
December 10, 2003
45 Travelers Series Fund Inc. | 2003 Annual Report
ADDITIONAL INFORMATION (UNAUDITED)
On August 20, 2003, a Special Meeting of the Shareholders of Strategic Equity
Portfolio (formerly known as Alliance Growth Portfolio) was held. The matters
voted upon and the tabulation results are as follows:
Item 1:
To Approve a New Sub-Advisory Agreement
Shares Shares Shares Broker
Voted For Voted Against Abstained Non-Vote
-------------------------------------------
32,591,380 1,568,966 3,288,912 0
-------------------------------------------
Item 2:
To Approve a New Sub-Sub-Advisory Agreement
Shares Shares Shares Broker
Voted For Voted Against Abstained Non-Vote
-------------------------------------------
32,088,366 1,911,588 3,449,304 0
-------------------------------------------
Item 3:
To Approve a Change in the Fund's Investment Objective
Shares Shares Shares Broker
Voted For Voted Against Abstained Non-Vote
-------------------------------------------
32,978,829 1,502,535 2,967,895 0
-------------------------------------------
46 Travelers Series Fund Inc. | 2003 Annual Report
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
Information about Directors and Officers
The business and affairs of the Travelers Series Fund Inc. ("Company") are
managed under the direction of the Company's Board of Directors. Information
pertaining to the Directors and Officers of the Company is set forth below.
Number of
Term of Portfolios
Office* and Principal in Fund Other
Position(s) Length Occupation(s) Complex Directorships
Held with of Time During Past Overseen Held by
Name, Address and Age Fund Served Five Years by Director Director
- ---------------------------------------------------------------------------------------------------------
Non-Interested Directors:
A. E. Cohen Director Since Consultant to Chugai 17 Director of Agouron
444 Madison Avenue 1996 Pharmaceutical Pharmaceuticals,
Suite 1201 Co. Ltd. Inc., Akzo Nobel
New York, NY 10022 NV, Teva
Age 67 Pharmaceutical Inc.,
Ltd., Chugai
Pharmaceutical Co.
Ltd., Pharmaceutical
Product
Development, Inc.
and Axonyx Inc.;
Chairman of
Vasomedical, Inc.,
Neurobiological
Technologies Inc.
and Kramex Corp.
Robert A. Frankel Director Since Managing Partner of 24 None
1961 Deergrass Way 1999 Robert A. Frankel
Carlsbad, CA 92009 Managing Consultants;
Age 76 Former Vice President of
The Readers Digest
Association, Inc.
Michael E. Gellert Director Since General Partner of 17 Director of Dalet
122 East 42nd Street 1999 Windcrest Partners, a S.A., Devon Energy
47th Floor venture capital firm Corp., High Speed
New York, NY 10168 Access Corp.,
Age 72 Human, Inc.,
SEACOR Smit, Inc.
and Six Flags, Inc.
Rainer Greeven Director Since Attorney, Rainer Greeven 17 Director of
630 5th Avenue 1994 PC Continental
Suite 1905 Container Corp.
New York, NY 10111
Age 67
Susan M. Heilbron Director Since Owner/Consultant of 17 Director of National
P.O. Box 557 1994 Lacey & Heilbron, a public Multiple Sclerosis
Chilimark, MA 02535 relations firm Society, New York
Age 58 City Chapter
47 Travelers Series Fund Inc. | 2003 Annual Report
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
Number of
Term of Portfolios
Office* and Principal in Fund Other
Position(s) Length Occupation(s) Complex Directorships
Held with of Time During Past Overseen Held by
Name, Address and Age Fund Served Five Years by Director Director
- -----------------------------------------------------------------------------------------------------
Interested Director:
R. Jay Gerken, CFA** Chairman, Since Managing Director of 220 None
Citigroup Asset President and 2002 Citigroup Global Markets
Management ("CAM") Chief Inc. ("CGM"); Chairman,
399 Park Avenue Executive President and Chief
4th Floor Officer Executive Officer of Smith
New York, NY 10022 Barney Fund Management
Age 52 LLC ("SBFM"), Travelers
Investment Adviser, Inc.
("TIA") and Citi Fund
Management Inc.
("CFM"); President and
Chief Executive Officer of
certain mutual funds
associated with Citigroup
Inc. ("Citigroup");
Formerly, Portfolio
Manager of Smith Barney
Allocation Series Inc.
(from 1996-2001) and
Smith Barney Growth and
Income Fund (from 1996-
2000)
Officers:
Andrew B. Shoup*** Senior Vice Since Director of CAM; Senior N/A N/A
CAM President and 2003 Vice President and Chief
125 Broad Street Chief Administrative Officer of
10th Floor Administrative mutual funds associated
New York, NY 10004 Officer with Citigroup; Head of
Age 47 International Funds
Administration of CAM
from 2001 to 2003;
Director of Global Funds
Administration of CAM
from 2000 to 2001; Head
of U.S. Citibank Funds
Administration of CAM
from 1998 to 2000
Richard L. Peteka Chief Since Director of CGM; Chief N/A N/A
CAM Financial 2002 Financial Officer and
125 Broad Street Officer and Treasurer of certain
11th Floor Treasurer mutual funds associated
New York, NY 10004 with Citigroup; Director
Age 42 and Head of Internal
Control for CAM U.S.
Mutual Fund
Administration from
1999-2002; Vice
President, Head of Mutual
Fund Administration and
Treasurer at Oppenheimer
Capital from 1996-1999
48 Travelers Series Fund Inc. | 2003 Annual Report
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
Number of
Term of Portfolios
Office* and Principal in Fund Other
Position(s) Length Occupation(s) Complex Directorships
Held with of Time During Past Overseen Held by
Name, Address and Age Fund Served Five Years by Director Director
- ----------------------------------------------------------------------------------------------------------
John B. Cunningham Vice Since Investment Officer of N/A N/A
CAM President 2003 SBFM; Managing Director
399 Park Avenue and of Salomon Brothers Asset
4th Floor Investment Management Inc and
New York, NY 10022 Officer CGM
Age 37
Adam Hetnarski Investment Since Vice President and N/A N/A
Fidelity Management & Officer 2003 Portfolio Manager of
Research Company Fidelity Management &
82 Devonshire Street Research Company
Boston, MA 02109
Stephen Boyd Investment Since Managing Director and N/A N/A
Van Kampen Asset Officer 2003 Senior Portfolio Manager
Management Inc. of Van Kampen Asset
1 Parkview Plaza Management Inc.
P.O. Box 5555
Oakbrook Terrace, IL 60181
Kaprel Ozsolak Controller Since Vice President of CGM; N/A N/A
CAM 2002 Controller of certain funds
125 Broad Street associated with Citigroup
11th Floor
New York, NY 10004
Age 38
Robert I. Frenkel Secretary*** Since Managing Director and N/A N/A
CAM and Chief 2003 General Counsel of Global
300 First Stamford Place Legal Officer Mutual Funds for CAM
4th Floor and its predecessor (since
Stamford, CT 06902 1994); Secretary of CFM;
Age 48 Secretary and Chief Legal
Officer of mutual funds
associated with Citigroup
- --------
* Each Director and Officer serves until his or her successor has been duly
elected and qualified.
** Mr. Gerken is an "interested person" of the Company as defined in the
Investment Company Act of 1940, as amended, because Mr. Gerken is an officer
of SBFM and certain of its affiliates.
*** As of November 25, 2003.
49 Travelers Series Fund Inc. | 2003 Annual Report
TAX INFORMATION (UNAUDITED)
For Federal tax purposes, the Funds hereby designate for the fiscal year ended
October 31, 2003:
. For corporate shareholders, the percentages of ordinary dividends that
qualify for the dividends received deduction are:
Smith Barney Large Cap Value Portfolio 100.00%
Strategic Equity Portfolio 99.39
Van Kampen Enterprise Portfolio 100.00
The following percentage of ordinary income distributions have been derived
from investments in U.S. Government and Agency Obligations. All or a portion of
the corresponding percentages may be exempt from taxation at the state level.
Strategic Equity Portfolio 1.36%
Van Kampen Enterprise Portfolio 3.32
50 Travelers Series Fund Inc. | 2003 Annual Report
TRAVELERS SERIES
FUND INC.
DIRECTORS INVESTMENT MANAGERS
A. E. Cohen Smith Barney Fund Management LLC
Robert A. Frankel Travelers Investment Adviser, Inc.
Michael E. Gellert
R. Jay Gerken, CFA CUSTODIAN
Chairman State Street Bank and
Rainer Greeven Trust Company
Susan M. Heilbron
ANNUITY
OFFICERS ADMINISTRATION
R. Jay Gerken, CFA Travelers Annuity Investor Services
President and Chief One Cityplace
Executive Officer Hartford, CT 06103-3415
Andrew B. Shoup*
Senior Vice President
and Chief
Administrative Officer
Richard L. Peteka
Chief Financial Officer
and Treasurer
John B. Cunningham
Vice President and
Investment Officer
Kaprel Ozsolak
Controller
Robert I. Frenkel
Secretary* and Chief
Legal Officer
* As of November 25, 2003.
Travelers Series Fund Inc.
Smith Barney Large Cap Value Portfolio
Strategic Equity Portfolio
Van Kampen Enterprise Portfolio
The Funds are separate investment funds of the Travelers Series Fund Inc., a
Maryland corporation.
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- Smith Barney Large Cap Value Portfolio,
Strategic Equity Portfolio and Van Kampen Enterprise Portfolio. It is not
authorized for distribution to prospective investors unless accompanied or
preceded by a current Prospectus for the Funds, which contains information
concerning the Funds' investment policies and expenses as well as other
pertinent information.
TRAVELERS SERIES FUND INC.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
IN0251 12/03 03-5794
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Directors of the registrant has determined that Robert A.
Frankel, the Chairman of the Board's Audit Committee, possesses the
technical attributes identified in Instruction 2(b) of Item 3 to Form
N-CSR to qualify as an "audit committee financial expert," and has
designated Mr. Frankel as the Audit Committee's financial expert. Mr.
Frankel is an "independent" Director pursuant to paragraph (a)(2) of
Item 3 to Form N-CSR.
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- 3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act")) are
effective as of a date within 90 days of the filing date of this
report that includes the disclosure required by this paragraph,
based on their evaluation of the disclosure controls and
procedures required by Rule 30a-3(b) under the 1940 Act and
15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940
Act) that occurred during the registrant's last fiscal half-year
(the registrant's second fiscal half-year in the case of an annual
report) that have materially affected, or are likely to materially
affect the registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a) Code of Ethics attached hereto.
Exhibit 99.CODE ETH
(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: January 2, 2004
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: January 2, 2004
By: /s/ Richard L. Peteka
(Richard L. Peteka)
Chief Financial Officer of
Travelers Series Fund Inc.
Date: January 2, 2004