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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-8372
Travelers Series Fund Inc.
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(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
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(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Smith Barney Fund Management LLC
300 First Stamford Place
Stamford, CT 06902
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(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 451-2010
Date of fiscal year end: OCTOBER 31
Date of reporting period: APRIL 30, 2004
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ITEM 1. REPORT TO STOCKHOLDERS.
The Semi-Annual Report to Stockholders is filed herewith.
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TRAVELERS SERIES FUND INC.
MFS TOTAL RETURN PORTFOLIO
TRAVELERS MANAGED INCOME PORTFOLIO
SMITH BARNEY MONEY MARKET PORTFOLIO
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SEMI-ANNUAL REPORT | APRIL 30, 2004
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NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
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WHAT'S INSIDE
Letter from the Chairman.................................................. 1
Schedules of Investments.................................................. 8
Statements of Assets and Liabilities...................................... 32
Statements of Operations.................................................. 33
Statements of Changes in Net Assets....................................... 34
Notes to Financial Statements............................................. 37
Financial Highlights...................................................... 44
LETTER FROM THE CHAIRMAN
[PHOTO]
R. Jay Gerken
R. JAY GERKEN, CFA
Chairman, President and
Chief Executive Officer
Dear Shareholder,
Global stock and bond markets generated mixed results over the six months ended
April 30, 2004. During this period of shifting sentiment, investors focused on
dissecting new language from the Fed to get a better reading on its assessment
of the U.S. economy, which continued to post strong results.
The release of positive reports on the U.S. economy, particularly with regard
to corporate earnings and gross domestic product ("GDP")/i/ growth, helped
drive the equity market rally through much of the period. Stock prices pulled
back, however, later in the first quarter due to interest rate concerns and
geopolitical uncertainty, particularly on the war in Iraq. Bond prices
retreated and yields rose sharply in
late March and in April due to investors' reaction to the Fed's comments
regarding the pick-up in the U.S. economy, its stance on inflation, and strong
improvement in job growth in March,/ii/ which exacerbated interest rate
concerns.
1 Travelers Series Fund Inc. | 2004 Semi-Annual Report
Within this environment, the funds performed as follows:/1/
PERFORMANCE OF THE FUNDS AS OF APRIL 30, 2004
6 Months
MFS Total Return Portfolio 5.79%
S&P 500 Index 6.27%
Lehman Brothers Aggregate Bond Index 1.25%
Lehman Brothers Government/Credit Bond Index 1.17%
Lipper Balanced Variable Funds Category Average 3.80%
Travelers Managed Income Portfolio 1.11%
Lehman Brothers Intermediate Government/Credit Bond Index 1.06%
Lipper Intermediate Investment Grade Debt Variable Funds Category Average 0.90%
Smith Barney Money Market Portfolio 0.27%
90-Day U.S. Treasury Bill Index 0.46%
Lipper Money Market Variable Funds Category Average -0.16%
The performance shown represents past performance. Past performance is no
guarantee of future results and current performance may be higher or lower
than the performance shown above. Principal value and investment returns
will fluctuate and investors' shares, when redeemed, may be worth more or
less than their original cost.
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.
All index performance reflects no deduction for fees, expenses or taxes. The
S&P 500 Index is a market capitalization-weighted index of 500 widely held
common stocks. The Lehman Brothers Aggregate Bond Index is a broad-based
bond index comprised of Government, Corporate, Mortgage and Asset-backed
issues, rated investment grade or higher, and having at least one year to
maturity. The Lehman Brothers Government/Credit Bond Index tracks the
performance of the overall bond market and is a broad measure of the
performance of government and corporate fixed-rate debt issues. The Lehman
Brothers Intermediate Government/Credit Bond Index is a broad measure of
bonds with maturities of up to ten years. The 90-day U.S. Treasury Bill
Index is an unmanaged index that consists of one 90-day United States
Treasury Bill whose return is tracked until its maturity.
Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six-month period ended April 30, 2004 and include
the reinvestment of dividends and capital gains, if any. Returns were
calculated among the 765 funds in the balanced variable funds category.
Returns were calculated among the 412 funds in the intermediate investment
grade debt variable funds category. Returns were calculated among the 967 in
the money market variable funds category.
/1/The fund is an underlying investment option of various variable annuity
products. A variable annuity product is a contract issued by an insurance
company where the annuity premium (a set amount of dollars) is immediately
turned into units of a portfolio of securities. Upon retirement, the
policyholder is paid according to accumulated units whose dollar value varies
according to the performance of the securities within the sub accounts. Its
objective is to preserve, through investment, the purchasing value of the
annuity, which otherwise is subject to erosion through inflation. The fund's
performance returns do not reflect the deduction of initial sales 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 fund. Past performance is no
guarantee of future results.
2 Travelers Series Fund Inc. | 2004 Semi-Annual Report
Smith Barney Money Market Portfolio
For the six months ended April 30, 2004, the Smith Barney Money Market
Portfolio returned 0.27%. In comparison, the 90-Day U.S. Treasury Bill
Index/iii/ returned 0.46% and the portfolio's variable annuity Lipper money
market variable funds category average returned -0.16% over the same period./2/
As of April 30, 2004, the fund's seven-day current yield was 0.53% and its
seven-day effective yield, which reflects compounding, was 0.53%. These numbers
are the same due to rounding. The seven-day effective yield is calculated
similarly to the seven-day yield but, when annualized, the income earned by an
investment in the fund is assumed to be reinvested. The effective yield will be
slightly higher than the current yield because of the compounding effect of the
assumed reinvestment.
Looking ahead, continued growth and a pickup in jobs could raise inflation
expectations and potentially lead to higher rates. Therefore, the management of
the portfolio adhered to a cautious approach in terms of its maturity
concentration, maintaining a relatively neutral average maturity. This approach
can enhance the portfolio team's flexibility to seek more favorable
opportunities by rolling over maturing issues into higher-yielding money market
instruments if rates continue to rise. (Note: The management's investment
approach is subject to change in response to market conditions.)
Travelers Managed Income Portfolio
For the six months ended April 30, 2004, the Travelers Managed Income Portfolio
returned 1.11%. In comparison, the Lehman Brothers Intermediate
Government/Credit Bond Index/iv/ returned 1.06% and the portfolio's Lipper
intermediate investment-grade debt variable funds category average returned
0.90%./3/ The portfolio maintained a concentration in corporate bonds, which
collectively held up modestly better than comparable-maturity U.S. Treasury
securities over the period,/v/ although the portfolio's management reduced the
portfolio's overall duration (a measure of a portfolio's sensitivity to
interest rate movements) this year, as concerns about the economy mounted.
Although this lower-duration approach at times limited the portfolio's full
participation in upside movements in the market, it helped to somewhat reduce
the downward pricing pressures on the portfolio during times when bond prices
declined, particularly during April.
/2/Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six-month period ended April 30, 2004, calculated
among the 967 funds in the fund's Lipper category including the reinvestment
of dividends and capital gains, if any.
/3/Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six-month period ended April 30, 2004, calculated
among the 412 funds in the fund's Lipper category including the reinvestment
of dividends and capital gains, if any.
3 Travelers Series Fund Inc. | 2004 Semi-Annual Report
MFS Total Return Portfolio
For the six months ended April 30, 2004, the MFS Total Return Portfolio
returned 5.79%. In comparison, the S&P 500 Index/vi/ returned 6.27%, the Lehman
Brothers Aggregate Bond Index/vii/ returned 1.25%, and the Lehman Brothers
Government/Credit Bond Index/viii/ returned 1.17%. The fund's Lipper balanced
variable funds category average returned 3.80% for the same time period./4/
Contributors to Performance
Stock selection in the utilities and communications sector, as well as a
relative overweighting in the sector, contributed strongly to performance over
the period./ix/ AT&T Wireless Services, Inc. was our best-performing holding in
the sector; the firm's stock appreciated considerably during the period when
the company became the target of a bidding war that was won by Cingular
Wireless LLC. Our position in electricity and natural gas company TXU Corp.
also rose sharply over the period.
As a value-oriented portfolio, the fund has usually been underweighted in
technology stocks relative to the fund's equity benchmark, the S&P 500 Index.
Generally speaking, a majority of technology stocks have tended to fall into
the growth stock universe. When technology stocks, which were market leaders
for the first half of the reporting period, slipped back in March and April of
2004, the fund's underweighting in those stocks worked in its favor. In
particular, being underweighted in semiconductor giant Intel Corp. helped
relative results as the firm's stock price declined significantly. The fund did
not own shares of Intel at period-end.
An overweighting in the energy sector also helped fund returns. Tensions in the
Middle East, lowered estimates of oil reserves by some major oil companies, and
under-investment in exploration for new resources combined to limit supply and
led energy prices to soar during the period, helping energy sector portfolio
holdings such as integrated oil company BP PLC and oil field services firm
Schlumberger Ltd.
While overall corporate bonds underperformed slightly during the period, within
the corporate market contributors to performance were within the telecom and
utilities sectors. Also our weighting in asset backed securities helped the
fixed-income portion of the fund outperform the overall U.S. bond market, as
measured by our fixed-income benchmark, the Lehman Brothers Aggregate Bond
Index.
/4/Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six-month period ended April 30, 2004, calculated
among the 765 funds in the fund's Lipper category including the reinvestment
of dividends and capital gains, if any.
4 Travelers Series Fund Inc. | 2004 Semi-Annual Report
Detractors from Performance
Stock selection in the leisure sector was a primary detractor from fund
performance. Fund holdings in cable operator Comcast Corp. performed poorly
when the firm made a failed attempt to acquire The Walt Disney Co. Our holdings
in companies that depend on advertising revenues, such as broadcasters and
newspapers, also underperformed the broad market.
Sears, Roebuck & Co. and Merrill Lynch & Co., Inc. were among other individual
holdings that detracted from both relative and absolute performance during the
period. Not owning insurer American International Group Inc. (AIG) and Internet
auctioneer eBay Inc. also hurt relative performance as those firms' stocks
delivered strong returns. Although both stocks are part of our benchmark, we
did not view these companies as appropriate for the fund's value-oriented
strategy. In the energy sector, we were relatively underweighted in integrated
oil firm ChevronTexaco Corp. and missed most of that stock's strong performance
over the period./x/
The fund's cash position also detracted from relative performance. As with
nearly all mutual funds, this fund holds some cash to buy new holdings and to
cover shareholder redemptions. In a period when equity markets rose sharply,
cash hurt performance against our equity benchmark, the unmanaged S&P 500
Index, which has no cash position. This fund normally invests from 55% to 60%
of its assets in stocks and the balance in bonds. The fund ended the period on
April 30, 2004 with a 58.8% allocation of net assets to stocks.
Information About Your Fund
In recent months several issues in the mutual fund industry have come under the
scrutiny of federal and state regulators. The fund's Adviser 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 fund has been informed
that the Adviser and its affiliates are responding to those information
requests, but are not in a position to predict the outcome of these requests
and investigations.
5 Travelers Series Fund Inc. | 2004 Semi-Annual Report
As always, thank you for your continued confidence in our stewardship of your
assets. 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
May 18, 2004
6 Travelers Series Fund Inc. | 2004 Semi-Annual Report
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 April 30, 2004 and are subject to
change. Please refer to pages 8 through 29 for a list and percentage breakdown
of each funds' holdings.
RISKS:
MFS Total Return Portfolio: The fund may invest in high yield bonds. High Yield
bonds involve greater credit and liquidity risks than investment grade bonds.
The fund may invest in foreign securities. Investing in foreign securities is
subject to certain risks not associated with domestic investing, such as
currency fluctuations, and changes in political and economic conditions. These
risks are magnified in emerging or developing markets. The fund may use
derivatives, such as options and futures, which can be illiquid, may
disproportionately increase losses, and have a potentially large impact on fund
performance.
Travelers Managed Income Portfolio: The fund may invest in high yield bonds.
High Yield bonds involve greater credit and liquidity risks than investment
grade bonds. The fund may invest in foreign securities. Investing in foreign
securities is subject to certain risks not associated with domestic investing,
such as currency fluctuations, and changes in political and economic
conditions. These risks are magnified in emerging or developing markets. The
fund may use derivatives, such as options and futures, which can be illiquid,
may disproportionately increase losses, and have a potentially large impact on
fund performance.
Smith Barney Money Market Portfolio: An investment in a money market fund is
neither insured nor guaranteed by the FDIC or any other government agency.
Although the fund seeks to preserve the value of your investment at one dollar
per share, it is possible to lose money by investing in the fund.
All index performance reflects no deduction for fees, expenses or taxes. Please
note that an investor cannot invest directly in an index.
/i/Based upon data released on April 1, 2004 from the U.S. Department of Labor.
Gross domestic product is a market value of goods and services produced by
labor and property in a given country.
/ii/Based upon data released on April 1, 2004/ /from the U.S. Department of
Labor.
/iii/The 90-day U.S. Treasury Bill Index is an unmanaged index that consists of
one 90-day United States Treasury Bill whose return is tracked until its
maturity.
/iv/The Lehman Brothers Intermediate Government/Credit Bond Index is a broad
measure of bonds with maturities of up to ten years.
/v/Source: Citigroup Global Index Group. Based upon the performance of
Citigroup indices reflective of the performance of intermediate- and
longer-term securities in each respective class of fixed-income securities
over the six-month period ended April 30, 2004.
/vi/The S&P 500 Index is a market capitalization-weighted index of 500 widely
held common stocks.
/vii/The Lehman Brothers Aggregate Bond Index is a broad-based index comprised
of Government, Corporate, Mortgage and Asset-backed issues, rated
investment grade or higher, and having at least one year to maturity.
/viii/The Lehman Brothers Government/Credit Bond Index tracks the performance
of the overall bond market and is a broad measure of the performance of
government and corporate fixed-rate debt issues.
/ix/The mention of sector breakdowns is for informational purposes only and
should not be construed as a recommendation to purchase or sell any
securities. The information provided regarding such sectors is not a
sufficient basis upon which to make an investment decision. Investors
seeking financial advice regarding the appropriateness of investing in any
securities or investment strategies discussed should consult their financial
professional. Portfolio holdings are subject to change at any time and may
not be representative of the portfolio manager's current or future
investments. The fund's top five sector holdings as of April 30, 2004 were:
Diversified Financials (8.4%); Banks (6.2%); Diversified Telecommunication
Services (5.6%); Media (4.6%); Oil and Gas (4.5%). The fund's portfolio
composition is subject to change at any time.
/x/Portfolio holdings and breakdowns are as of April 30, 2004 and are subject
to change and may not be representative of the portfolio manager's current
or future investments. The fund's top ten holdings as of this date were:
Federal Home LN Bank, zero coupon due 5/3/04 (2.72%), Bank America Corp.
(2.37%), Verizon Communications (1.91%), United States Treasury Bond, 6.250%
due 8/15/23 (1.73%), Johnson & Johnson (1.60%), Sprint Corporation (1.53%),
Lockheed Martin Corp. (1.27%), Microsoft Corp. (1.25%), Viacom Inc. (1.24%),
BP PLC (1.16%).
7 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------
COMMON STOCK -- 57.0%
CONSUMER DISCRETIONARY -- 6.0%
Auto Components -- 0.4%
55,300 Magna International Inc., Class A Shares $ 4,363,170
- ---------------------------------------------------------------------------
Hotels, Restaurants and Leisure -- 0.2%
67,900 Hilton Hotels Corp. 1,187,571
45,200 McDonald's Corp. 1,230,796
- ---------------------------------------------------------------------------
2,418,367
- ---------------------------------------------------------------------------
Household Durables -- 0.6%
254,720 Newell Rubbermaid Inc. 6,021,581
- ---------------------------------------------------------------------------
Leisure Equipment and Products -- 0.0%
15,200 Hasbro, Inc. (a) 287,128
- ---------------------------------------------------------------------------
Media -- 4.2%
416,160 Comcast Corp., Special Class A Shares (b) 12,064,478
35,400 Cox Communications, Inc., Class A Shares (a)(b) 1,157,226
36,000 EchoStar Communications Corp., Class A Shares (b) 1,194,840
55,700 The New York Times Co., Class A Shares 2,551,617
65,600 The News Corp. Ltd., Preferred Shares, ADR 2,214,000
257,600 Time Warner Inc. (b) 4,332,832
55,050 Tribune Co. 2,635,794
349,353 Viacom Inc., Class B Shares 13,502,493
284,800 The Walt Disney Co. 6,558,944
- ---------------------------------------------------------------------------
46,212,224
- ---------------------------------------------------------------------------
Multiline Retail -- 0.0%
11,100 Sears, Roebuck & Co. (a) 444,555
- ---------------------------------------------------------------------------
Specialty Retail -- 0.5%
95,770 The Home Depot, Inc. 3,370,146
63,800 The TJX Cos., Inc. 1,567,566
- ---------------------------------------------------------------------------
4,937,712
- ---------------------------------------------------------------------------
Textiles and Apparel -- 0.1%
30,600 Reebok International Ltd. 1,113,228
- ---------------------------------------------------------------------------
TOTAL CONSUMER DISCRETIONARY 65,797,965
- ---------------------------------------------------------------------------
CONSUMER STAPLES -- 4.8%
Beverages -- 0.1%
20,000 Anheuser-Busch Co., Inc. 1,024,800
9,700 PepsiCo, Inc. 528,553
- ---------------------------------------------------------------------------
1,553,353
- ---------------------------------------------------------------------------
Food and Drug Retailing -- 0.8%
284,240 The Kroger Co. (b) 4,974,200
627,150 Rite Aid Corp. (a)(b) 3,073,035
- ---------------------------------------------------------------------------
8,047,235
- ---------------------------------------------------------------------------
See Notes to Financial Statements.
8 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------
Food Products -- 2.2%
248,097 Archer-Daniels-Midland Co. $ 4,356,583
137,900 General Mills, Inc. 6,722,625
93,500 H.J. Heinz Co. 3,570,765
88,000 Kellogg Co. 3,775,200
141,200 Sara Lee Corp. 3,258,896
21,900 Tyson Foods, Inc., Class A Shares 410,406
28,700 Unilever NV (a) 1,892,191
- -----------------------------------------------------------
23,986,666
- -----------------------------------------------------------
Household Products -- 0.9%
150,540 The Kimberly-Clark Corp. 9,852,843
- -----------------------------------------------------------
Tobacco -- 0.8%
166,500 Altria Group, Inc. 9,220,770
- -----------------------------------------------------------
TOTAL CONSUMER STAPLES 52,660,867
- -----------------------------------------------------------
ENERGY -- 7.1%
Energy Equipment and Services -- 3.0%
88,670 BJ Services Co. (b) 3,945,815
97,130 Cooper Cameron Corp. (a)(b) 4,696,236
357,140 GlobalSantaFe Corp. (a) 9,417,782
273,280 Noble Corp. (b) 10,155,085
71,570 Schlumberger Ltd. 4,188,992
- -----------------------------------------------------------
32,403,910
- -----------------------------------------------------------
Oil and Gas -- 4.1%
238,506 BP PLC, Sponsored ADR 12,616,967
13,700 ChevronTexaco Corp. 1,253,550
59,600 ConocoPhillips 4,249,480
115,040 Devon Energy Corp. 7,040,448
52,000 Encana Corp. 2,039,440
12,900 EOG Resources, Inc. 635,325
186,306 Exxon Mobil Corp. 7,927,320
29,500 Newfield Exploration Co. (b) 1,554,060
41,500 Total SA, Sponsored ADR (a) 3,822,980
100,400 Unocal Corp. 3,618,416
- -----------------------------------------------------------
44,757,986
- -----------------------------------------------------------
TOTAL ENERGY 77,161,896
- -----------------------------------------------------------
FINANCIALS -- 13.4%
Banks -- 6.2%
321,226 Bank of America Corp. 25,855,481
33,000 The Bank of New York Co., Inc. 961,620
188,900 Bank One Corp. 9,325,993
407,690 Mellon Financial Corp. 12,083,932
See Notes to Financial Statements.
9 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------------------
Banks -- 6.2% (continued)
134,540 The PNC Financial Services Group $ 7,144,074
29,200 SouthTrust Corp. 907,536
114,400 SunTrust Banks, Inc. 7,784,920
92,446 U.S. Bancorp 2,370,315
44,500 Wachovia Corp. 2,035,875
- ---------------------------------------------------------------------
68,469,746
- ---------------------------------------------------------------------
Diversified Financials -- 4.8%
142,600 American Express Co. 6,980,270
89,900 Fannie Mae 6,177,928
19,500 Franklin Resources, Inc. 1,069,185
80,810 Freddie Mac 4,719,304
62,850 The Goldman Sachs Group, Inc. 6,080,738
177,790 J.P. Morgan Chase & Co. 6,684,904
6,200 Janus Capital Group, Inc. 94,240
29,500 Lehman Brothers Holdings, Inc. 2,165,300
48,800 MBNA Corp. 1,189,744
226,060 Merrill Lynch & Co., Inc. 12,259,234
102,100 Morgan Stanley 5,246,919
- ---------------------------------------------------------------------
52,667,766
- ---------------------------------------------------------------------
Insurance -- 2.4%
16,700 AFLAC, Inc. 705,241
218,260 Allstate Corp. 10,018,134
16,800 The Chubb Corp. 1,159,200
132,180 The Hartford Financial Services Group, Inc. 8,073,554
8,700 Marsh & McLennan Cos., Inc. 392,370
159,030 MetLife, Inc. 5,486,535
- ---------------------------------------------------------------------
25,835,034
- ---------------------------------------------------------------------
TOTAL FINANCIALS 146,972,546
- ---------------------------------------------------------------------
HEALTH CARE -- 6.4%
Biotechnology -- 0.1%
26,900 Genzyme Corp. (b) 1,171,764
- ---------------------------------------------------------------------
Healthcare Equipment and Supplies -- 0.6%
169,380 Baxter International, Inc. 5,360,877
4,200 C.R. Bard, Inc. 446,334
6,000 Guidant Corp. 378,060
- ---------------------------------------------------------------------
6,185,271
- ---------------------------------------------------------------------
Healthcare Providers and Services -- 1.2%
67,100 Apria Healthcare Group, Inc. (a)(b) 1,935,164
26,200 Cardinal Health, Inc. 1,919,150
37,700 HCA Inc. (a) 1,531,751
See Notes to Financial Statements.
10 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ----------------------------------------------------------------------
Healthcare Providers and Services -- 1.2% (continued)
89,400 Lincare Holdings Inc. (b) $ 3,104,862
359,930 Tenet Healthcare Corp. (b) 4,232,777
- ------------------------------------------------------------------
12,723,704
- ------------------------------------------------------------------
Pharmaceuticals -- 4.5%
164,500 Abbott Laboratories 7,241,290
28,300 Eli Lilly & Co. 2,088,823
322,260 Johnson & Johnson 17,411,708
1 Medco Health Solutions, Inc. (b) 35
229,720 Merck & Co. Inc. 10,796,840
58,700 Pfizer Inc. 2,099,112
255,800 Wyeth 9,738,306
- ------------------------------------------------------------------
49,376,114
- ------------------------------------------------------------------
TOTAL HEALTH CARE 69,456,853
- ------------------------------------------------------------------
INDUSTRIALS -- 4.7%
Aerospace and Defense -- 1.6%
290,120 Lockheed Martin Corp. 13,838,724
43,000 Northrop Grumman Corp. 4,267,750
- ------------------------------------------------------------------
18,106,474
- ------------------------------------------------------------------
Airlines -- 0.1%
103,300 Southwest Airlines Co. 1,475,124
- ------------------------------------------------------------------
Commercial Services and Supplies -- 0.1%
35,500 ARAMARK Corp., Class B Shares (a)(b) 1,015,300
- ------------------------------------------------------------------
Electrical Equipment -- 0.3%
11,500 Cooper Industries, Inc. 631,465
39,300 Emerson Electric Co. 2,366,646
- ------------------------------------------------------------------
2,998,111
- ------------------------------------------------------------------
Industrial Conglomerates -- 1.2%
172,770 General Electric Co. 5,174,462
282,390 Tyco International Ltd. 7,751,606
- ------------------------------------------------------------------
12,926,068
- ------------------------------------------------------------------
Machinery -- 0.8%
28,100 Caterpillar Inc. 2,184,213
26,950 Deere & Co. 1,833,678
36,600 Eaton Corp. 2,173,308
33,400 Ingersoll-Rand Co. 2,155,970
- ------------------------------------------------------------------
8,347,169
- ------------------------------------------------------------------
See Notes to Financial Statements.
11 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- ---------------------------------------------------------------
Road and Rail -- 0.6%
68,300 Burlington Northern Santa Fe Corp. $ 2,233,410
77,800 Union Pacific Corp. 4,584,754
- ---------------------------------------------------------------
6,818,164
- ---------------------------------------------------------------
TOTAL INDUSTRIALS 51,686,410
- ---------------------------------------------------------------
INFORMATION TECHNOLOGY -- 3.0%
Communications Equipment -- 1.0%
94,000 Cisco Systems, Inc. (b) 1,961,780
347,900 Nokia Oyj, Sponsored ADR 4,874,079
990,800 Nortel Networks Corp. (b) 3,705,592
- ---------------------------------------------------------------
10,541,451
- ---------------------------------------------------------------
Computers and Peripherals -- 0.3%
27,100 Hewlett-Packard Co. 533,870
27,750 International Business Machines Corp. 2,446,718
- ---------------------------------------------------------------
2,980,588
- ---------------------------------------------------------------
IT Consulting and Services -- 0.1%
33,400 Accenture Ltd., Class A Shares (b) 793,918
- ---------------------------------------------------------------
Semiconductor Equipment and Products -- 0.1%
335,200 Agere Systems, Inc. (b) 727,384
35,900 Novellus Systems, Inc. (b) 1,039,664
- ---------------------------------------------------------------
1,767,048
- ---------------------------------------------------------------
Software -- 1.5%
69,300 Cadence Design Systems, Inc. (b) 888,426
523,440 Microsoft Corp. 13,593,737
154,630 Network Associates, Inc. (a)(b) 2,424,598
- ---------------------------------------------------------------
16,906,761
- ---------------------------------------------------------------
TOTAL INFORMATION TECHNOLOGY 32,989,766
- ---------------------------------------------------------------
MATERIALS -- 4.1%
Chemicals -- 2.4%
69,800 Air Products & Chemicals, Inc. 3,476,738
100,800 The Dow Chemical Co. 4,000,752
182,800 E.I. du Pont de Nemours & Co. 7,851,260
155,820 Lyondell Chemical Co. (a) 2,547,657
81,400 Monsanto Co. 2,815,626
78,900 PPG Industries, Inc. 4,679,559
16,300 Praxair, Inc. 595,765
- ---------------------------------------------------------------
25,967,357
- ---------------------------------------------------------------
See Notes to Financial Statements.
12 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- --------------------------------------------------------------------------
Containers and Packaging -- 0.7%
377,930 Owens-Illinois, Inc. (a)(b) $ 5,275,903
159,360 Smurfit-Stone Container Corp. (b) 2,739,398
- --------------------------------------------------------------------------
8,015,301
- --------------------------------------------------------------------------
Metals and Mining -- 0.5%
61,320 Alcoa Inc. 1,885,590
70,900 Companhia Vale do Rio Doce, Sponsored ADR (a)(b) 3,225,950
- --------------------------------------------------------------------------
5,111,540
- --------------------------------------------------------------------------
Paper and Forest Products -- 0.5%
75,170 Bowater Inc. (a) 3,153,381
71,650 International Paper Co. 2,888,928
- --------------------------------------------------------------------------
6,042,309
- --------------------------------------------------------------------------
TOTAL MATERIALS 45,136,507
- --------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.6%
Diversified Telecommunication Services -- 4.2%
89,940 AT&T Corp. 1,542,471
265,924 SBC Communications Inc. 6,621,508
933,470 Sprint Corp., Series 1, FON Shares 16,699,778
550,514 Verizon Communications Inc. 20,776,398
- --------------------------------------------------------------------------
45,640,155
- --------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.4%
163,571 Vodafone Group PLC, Sponsored ADR (a) 4,014,032
- --------------------------------------------------------------------------
TOTAL TELECOMMUNICATION SERVICES 49,654,187
- --------------------------------------------------------------------------
UTILITIES -- 2.9%
Electric Utilities -- 2.6%
1,007,590 Calpine Corp. (a)(b) 4,372,941
63,400 Cinergy Corp. (a) 2,405,396
18,600 Dominion Resources, Inc. 1,186,866
43,400 Energy East Corp. 1,022,070
73,900 Entergy Corp. 4,034,940
34,200 Exelon Corp. 2,289,348
40,700 FirstEnergy Corp. 1,591,370
14,700 NSTAR (a) 711,480
67,800 PPL Corp. 2,905,230
215,750 TXU Corp. 7,365,705
- --------------------------------------------------------------------------
27,885,346
- --------------------------------------------------------------------------
Gas Utilities -- 0.2%
37,600 AGL Resources, Inc. 1,075,360
22,100 KeySpan Corp. 798,915
32,200 National Fuel Gas Co. (a) 788,578
- --------------------------------------------------------------------------
2,662,853
- --------------------------------------------------------------------------
See Notes to Financial Statements.
13 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
- -------------------------------------------------------------
Multi-Utilities -- 0.1%
76,924 NiSource Inc. $ 1,550,788
- -------------------------------------------------------------
TOTAL UTILITIES 32,098,987
- -------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $576,732,505) 623,615,984
- -------------------------------------------------------------
FOREIGN COMMON STOCK -- 1.6%
France -- 0.1%
16,800 Sanofi-Synthelabo SA 1,066,388
- -------------------------------------------------------------
Switzerland -- 0.9%
39,300 Novartis AG 1,749,829
39,400 Roche Holding AG (a) 4,127,720
32,100 Syngenta AG (b) 2,565,478
20,881 UBS AG (a) 1,482,251
- -------------------------------------------------------------
9,925,278
- -------------------------------------------------------------
United Kingdom -- 0.6%
115,300 BHP Billiton PLC (b) 921,567
73,700 Diageo PLC 989,189
460,800 Reed Elsevier PLC 4,292,147
- -------------------------------------------------------------
6,202,903
- -------------------------------------------------------------
TOTAL FOREIGN COMMON STOCK
(Cost -- $15,706,351) 17,194,569
- -------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- -------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 26.6%
U.S. Treasury Notes:
$ 9,995,000 1.625% due 3/31/05 10,006,324
1,725,000 1.250% due 5/31/05 (a) 1,718,128
3,004,000 5.750% due 11/15/05 (a) 3,173,447
2,913,000 6.875% due 5/15/06 (a) 3,174,261
9,240,000 7.000% due 7/15/06 (a) 10,137,657
1,719,000 4.375% due 5/15/07 (a) 1,793,065
3,098,000 3.250% due 8/15/07 (a) 3,124,624
9,974,000 3.000% due 11/15/07 (a) 9,952,576
3,161,000 5.500% due 2/15/08 (a) 3,420,426
3,072,806 4.250% due 1/15/10 (a) 3,537,811
4,842,613 3.000% due 7/15/12 (a) 5,235,886
3,767,000 4.000% due 11/15/12 (a) 3,670,177
11,502,000 3.875% due 2/15/13 (a) 11,066,189
3,099,000 4.000% due 2/15/14 (a) 2,977,947
See Notes to Financial Statements.
14 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 26.6% (continued)
U.S. Treasury Bonds:
$ 2,407,000 8.000% due 11/15/21 (a) $ 3,171,600
16,993,000 6.250% due 8/15/23 (a) 18,887,465
4,059,000 5.375% due 2/15/31 (a) 4,113,545
1,905,000 Federal Home Loan Bank, 2.875% due 9/15/06 (a) 1,912,188
Federal Home Loan Mortgage Corp. (FHLMC):
10,656,000 7.000% due 7/15/05 (a)(c) 11,309,831
5,138,000 5.500% due 7/15/06 (a) 5,455,636
2,663,000 2.875% due 12/15/06 (a) 2,665,240
372,000 6.000% due 6/15/11 (a) 404,405
152,365 6.500% due 12/1/15 161,374
582,348 5.000% due 5/1/18 587,134
4,809,639 4.500% due 5/1/18 to 1/1/19 4,746,279
1,686,872 6.000% due 2/1/23 1,738,098
5,944,657 5.000% due 9/1/33 to 11/1/33 5,769,765
1,233,836 6.000% due 11/1/33 1,263,147
11,470,278 5.500% due 5/1/33 to 1/1/34 11,466,365
Federal National Mortgage Association (FNMA):
2,000,000 2.500% due 6/15/06 1,996,146
1,771,000 5.250% due 4/15/07 (a) 1,879,066
3,451,000 6.000% due 5/15/08 (a) 3,750,164
1,400,000 5.722% due 2/1/09 1,492,607
11,056,000 6.625% due 9/15/09 to 11/15/10 (a) 12,417,981
5,955,000 6.125% due 3/15/12 (a) 6,495,101
780,000 5.125% due 1/2/14 (a) 768,777
5,866,798 6.000% due 7/1/16 to 3/1/17 6,124,446
9,807,465 5.500% due 11/1/16 to 2/1/18 10,076,761
12,537,889 5.000% due 11/1/17 to 11/1/18 12,634,004
5,437,230 4.500% due 4/1/18 to 3/1/19 5,360,386
2,090,434 7.500% due 10/1/29 to 1/1/32 2,237,393
12,527,975 6.500% due 11/1/28 to 8/1/32 13,046,790
15,012,714 6.000% due 2/1/32 to 3/1/33 15,367,064
26,741,874 5.500% due 2/1/33 to 4/1/34 26,708,655
4,454,000 5.000% due 4/1/34 4,320,032
1,900,000 6.500% due 5/13/34 (d) 1,977,782
Government National Mortgage Association (GNMA):
710,844 6.500% due 3/15/28 to 12/15/28 743,555
371,550 7.000% due 8/15/32 395,103
3,015,546 6.000% due 3/20/31 to 4/15/33 3,093,004
1,466,020 6.500% due 3/15/33 1,532,160
12,156,584 5.500% due 11/15/32 to 8/15/33 12,176,208
- ---------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost -- $294,426,441) 291,233,775
- ---------------------------------------------------------------------------
See Notes to Financial Statements.
15 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- ------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 11.6%
Aerospace and Defense -- 0.3%
$ 931,000 Baa1* BAE Systems Holdings Inc., Notes, 6.400% due 12/15/11 (f) $ 993,571
1,233,000 BBB Northrop Grumman Corp., Sr. Unsecured Debentures,
7.750% due 2/15/31 1,448,483
1,143,000 BBB- Raytheon Co., Sr. Unsecured Notes, 6.150% due 11/1/08 1,231,611
- ------------------------------------------------------------------------------------------------
3,673,665
- ------------------------------------------------------------------------------------------------
Airlines -- 0.0%
262,336 BBB+ Continental Airlines Inc., Series 981A, 6.648% due 9/15/17 253,962
300,000 D Jet Equipment Trust, Series 95-D, 11.440% due 11/1/14 (f)(g) 1,500
- ------------------------------------------------------------------------------------------------
255,462
- ------------------------------------------------------------------------------------------------
Automotive -- 0.2%
1,872,000 A3* DaimlerChrysler North America Holding Corp., Notes,
6.500% due 11/15/13 1,934,328
- ------------------------------------------------------------------------------------------------
Chemicals -- 0.2%
659,000 A- The Dow Chemical Co., Notes, 5.750% due 12/15/08 701,242
1,416,000 BBB+ Miller Brewing Co., Notes, 5.500% due 8/15/13 (f) 1,435,902
- ------------------------------------------------------------------------------------------------
2,137,144
- ------------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations -- 2.3%
776,836 Aaa* Bear Stearns Commercial Mortgage Securities, Series
1999-WF2, Class A1, 6.800% due 9/15/08 816,589
229,708 AAA Beneficial Mortgage Corp., Series 1997-2, Class A,
1.220% due 9/28/37 (h) 228,703
218,494 BBB Blackrock Capital Finance L.P., Series 1996-R1, Class B2,
7.750% due 9/25/26 200,736
2,750,000 AAA Capital One Auto Finance Trust, Series 2002-A, Class A4,
4.790% due 1/15/09 2,837,556
2,653,216 Aaa* Certificates Funding Corp., Series 1997-1, Class A2,
6.716% due 12/19/04 2,660,166
Chase Commercial Mortgage Securities Corp.:
1,167,000 AAA Series 1998-2, Class A2, 6.390% due 11/18/30 1,275,027
300,180 Aaa* Series 2000-2, Class A1, 7.543% due 7/15/32 329,339
122,706 Aaa* Chase Mortgage Finance Corp., Series 2002-S2, Class A1,
6.000% due 2/25/17 122,754
986,493 Aaa* Countrywide Alternative Loan Trust, Series 2000-1, Class A5,
8.000% due 7/25/30 994,328
CRIIMI MAE Commercial Mortgage Trust:
420,000 AAA Series 1998-1, Class C, 6.701% due 6/20/30 445,367
2,150,000 A+ Series 1998-C1, Class A2, 7.000% due 6/2/33 2,294,029
550,000 Aaa* CS First Boston Mortgage Securities Corp., Series 2001-CK1,
Class A3, 6.380% due 12/16/35 599,799
See Notes to Financial Statements.
16 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations -- 2.3% (continued)
$ 1,178,000 Aaa* Deutsche Mortgage and Asset Receiving Corp.,
Series 1998-C1, Class A2, 6.538% due 6/15/31 $ 1,267,858
480,762 AAA First Union-Lehman Brothers Bank of America Commercial
Mortgage Trust, Series 1998-C2, Class A2,
6.560% due 11/18/35 526,544
First Union-Lehman Brothers Commercial Mortgage Trust:
428,148 Aaa* Series 1997-C1, Class A3, 7.380% due 4/18/29 466,556
683,483 AAA Series 1997-C2, Class A3, 6.650% due 11/18/29 740,760
738,889 AAA GS Mortgage Securities Corp. II, Series 1998-C1, Class A1,
6.060% due 10/18/30 764,263
396,000 AAA J.P. Morgan Commercial Mortgage Finance Corp.,
Series 1998-C6, Class A3, 6.613% due 1/15/30 431,250
458,956 AAA Merrill Lynch Mortgage Investors, Inc., Series 1998-C2,
Class A2, 6.390% due 2/15/30 492,596
37,397,833 NR Morgan Stanley Capital 1, Inc., Series 1998-HF2, Class X,
0.817% due 11/15/30 1,023,627
1,406,662 AAA Mortgage Capital Funding, Inc., Series 1998-MC3, Class A2,
6.337% due 11/18/31 1,527,403
346,302 AAA Multi-Family Capital Access One, Inc., Series 1, Class A,
6.650% due 1/15/24 383,329
500,000 AAA Providian Gateway Master Trust, Series 2000-B, Class A,
1.380% due 3/16/09 (h) 502,183
270,353 AAA Residential Accredit Loans, Inc., Series 1998-QS4, Class AI5,
7.000% due 3/25/28 270,268
548,647 AAA Residential Asset Mortgage Products, Inc., Series 2003-RZ5,
Class A3, 3.800% due 7/25/30 537,414
306,141 AAA Residential Funding Mortgage Securities, Series 2001-S28,
Class A1, 6.000% due 12/25/16 305,938
2,154,289 NR Small Business Administration Participation Certifications,
Series 2003-20G, Class 1, 4.350% due 7/1/23 2,051,560
784,168 AAA Wells Fargo Mortgage Backed Securities Trust, Series 2002-6,
Class A3, 6.000% due 4/25/17 788,997
- -------------------------------------------------------------------------------------------------
24,884,939
- -------------------------------------------------------------------------------------------------
Commercial Services and Supplies -- 0.1%
Cendant Corp., Sr. Unsecured Notes:
645,000 Baa1* 6.875% due 8/15/06 699,284
534,000 Baa1* 6.250% due 1/15/08 577,226
- -------------------------------------------------------------------------------------------------
1,276,510
- -------------------------------------------------------------------------------------------------
Diversified Financials -- 3.6%
801,000 A2* Abbey National Capital Trust I, 8.963% due 12/29/49 (a)(h) 1,025,895
2,500,000 AAA AIG SunAmerica Global Financing II, Sr. Notes,
7.600% due 6/15/05 (f) 2,653,495
See Notes to Financial Statements.
17 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------
Diversified Financials -- 3.6% (continued)
$ 1,951,000 Aa3* Bank of America Corp., Jr. Unsecured Sub. Notes,
7.400% due 1/15/11 $ 2,246,459
2,300,000 A Boeing Capital Corp., Notes, 6.500% due 2/15/12 (a) 2,503,221
1,282,000 A Countrywide Home Loans, Inc., Unsecured Notes,
6.850% due 6/15/04 1,289,925
CS First Boston (USA), Inc.:
475,000 Aa3* Notes, 6.125% due 11/15/11 509,083
3,121,000 Aa3* Unsecured Notes, 6.500% due 1/15/12 3,414,177
726,000 A1* DBS Capital Funding Corp., Sub. Bonds,
7.657% due 3/31/49 (f)(h) 822,243
Ford Motor Credit Co.:
Notes:
970,000 A3* 7.875% due 6/15/10 1,066,961
582,000 A3* 7.000% due 10/1/13 (a) 599,573
Unsecured Notes:
833,000 A3* 6.875% due 2/1/06 882,073
1,316,000 Baa1* 7.450% due 7/16/31 1,286,576
GE Capital Corp.:
313,000 AAA 8.750% due 5/21/07 363,878
1,232,000 AAA Series A, Notes, 7.500% due 5/15/05 1,302,792
553,000 AAA Unsecured Debentures, 8.500% due 7/24/08 650,774
General Motors Acceptance Corp.:
657,000 A3* Bonds, 8.000% due 11/1/31 695,400
1,085,000 A3* Notes, 7.250% due 3/2/11 1,167,905
2,500,000 AAA KFW International Finance Inc., Notes, 4.250% due 4/18/05 2,557,995
Lehman Brothers Holdings Inc.:
711,000 A1* Sr. Unsecured Notes, 7.750% due 1/15/05 739,483
771,000 A1* Sr. Unsecured Unsub. Notes, 8.250% due 6/15/07 879,994
599,000 BBB+ MidAmerican Funding LLC, Sr. Secured Bonds,
6.927% due 3/1/29 637,534
1,514,000 Aa3* Morgan Stanley, Unsecured Unsub. Bonds,
6.100% due 4/15/06 1,614,277
Pemex Project Funding Master Trust, Unsecured Unsub. Notes:
1,296,000 Baa1* 7.375% due 12/15/14 1,360,800
153,000 Baa1* 8.625% due 2/1/22 164,475
1,910,000 A3* Popular North America, Inc., Notes, 4.250% due 4/1/08 1,927,973
2,000,000 A1* RBS Capital Trust II, Non-Cumulative Trust Preferred Securities,
6.425% due 12/29/49 (h) 1,981,706
1,412,000 A1* Unicredito Italiano Capital Trust II, Non-Cumulative Trust
Preferred Security, 9.200% due 10/29/49 (f)(h) 1,726,201
2,874,000 Aa1* Wells Fargo Bank N.A., Unsecured Sub. Notes,
7.800% due 6/15/10 (h) 3,042,066
- ----------------------------------------------------------------------------------------------------
39,112,934
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
18 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- --------------------------------------------------------------------------------------------------
Diversified Telecommunications Services -- 1.0%
$ 558,000 A ALLTEL Corp., Sr. Unsecured Notes, 7.875% due 7/1/32 $ 659,991
410,000 BBB AT&T Wireless Services Inc., Sr. Unsecured Unsub. Notes,
7.350% due 3/1/06 443,839
Citizens Communications Co.:
623,000 BBB Sr. Unsecured Notes, 8.500% due 5/15/06 671,621
1,366,000 BBB Sr. Unsecured Unsub. Notes, 7.625% due 8/15/08 1,422,959
737,000 BBB PCCW Capital II Ltd., Notes, 6.000% due 7/15/13 (f) 745,066
Sprint Capital Corp.:
701,000 BBB- 6.875% due 11/15/28 690,211
334,000 BBB- Sr. Unsecured Notes, 7.125% due 1/30/06 358,440
3,319,000 BB+ TCI Communications Inc., Preferred Security,
9.650% due 3/31/27 3,938,113
2,096,000 A+ Verizon New York Inc., Sr. Unsecured Debentures, Series A,
6.875% due 4/1/12 2,296,053
- -----------------------------------------------------------------------------------------------
11,226,293
- -----------------------------------------------------------------------------------------------
Electric Utilities -- 1.4%
1,500,000 BBB DTE Energy Co., Sr. Unsecured Unsub. Notes,
7.050% due 6/1/11 1,655,301
471,000 NR Entergy Mississippi Inc., Mortgage Bonds, 6.200% due 5/1/04 471,000
796,000 Baa3* FirstEnergy Corp., Sr. Unsecured Unsub. Notes, Series B,
6.450% due 11/15/11 839,278
217,088 BBB- GG1B Funding Corp., Secured Bonds, 7.430% due 1/15/11 223,261
750,000 BBB- GG1C Funding Corp., Secured Bonds, 5.129% due 1/15/14 742,212
1,250,000 A+ Hydro-Quebec, Notes, Series JL, 6.300% due 5/11/11 1,381,003
MidAmerican Energy Holdings Co., Sr. Unsecured Notes:
544,000 BBB- 3.500% due 5/15/08 530,825
268,000 BBB- 5.875% due 10/1/12 277,483
271,000 A+ Niagara Mohawk Power Corp., Secured Mortgage Bonds,
7.750% due 5/15/06 296,762
299,657 Baa1* Northeast Utilities, Notes, Series A, 8.580% due 12/1/06 320,494
1,392,000 Baa1* Oncor Electric Delivery Co., Sr. Secured Notes,
7.000% due 5/1/32 1,512,215
1,500,000 BBB Pacific Gas & Electric Co., Mortgages, 4.800% due 3/1/14 1,437,936
Progress Energy, Inc., Sr. Unsecured Notes:
458,000 Baa2* 7.100% due 3/1/11 511,127
1,292,000 Baa2* 6.850% due 4/15/12 1,419,899
1,344,000 Baa1* PSE&G Power LLC, Sr. Unsecured Notes,
8.625% due 4/15/31 1,673,181
858,000 Baa2* Toledo Edison Co., Mortgage Bonds, 7.875% due 8/1/04 870,295
726,276 BBB- Waterford 3 Funding - Entergy Louisiana Inc., Bonds,
8.090% due 1/2/17 797,850
- -----------------------------------------------------------------------------------------------
14,960,122
- -----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
19 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- ----------------------------------------------------------------------------------------------
Energy Equipment and Services -- 0.1%
$ 290,000 BBB CenterPoint Energy Resources Corp., Sr. Notes, Series B,
7.875% due 4/1/13 $ 327,581
985,000 BBB+ Kinder Morgan Energy Partners, L.P., Sr. Unsecured Bonds,
7.750% due 3/15/32 1,127,698
- ----------------------------------------------------------------------------------------------
1,455,279
- ----------------------------------------------------------------------------------------------
Food and Beverages -- 0.2%
1,464,000 BBB Cadbury Schweppes US Finance LLC, Notes,
5.125% due 10/1/13 (f) 1,447,807
602,000 A3* Kraft Foods Inc., Notes, 6.250% due 6/1/12 645,874
- ----------------------------------------------------------------------------------------------
2,093,681
- ----------------------------------------------------------------------------------------------
Healthcare Providers and Services -- 0.2%
HCA Inc.:
260,000 BBB- Sr. Unsecured Notes, 8.750% due 9/1/10 298,704
1,489,000 BBB- Unsecured Notes, 6.950% due 5/1/12 1,558,036
- ----------------------------------------------------------------------------------------------
1,856,740
- ----------------------------------------------------------------------------------------------
Machinery -- 0.1%
630,000 BBB Kennametal Inc., Sr. Unsecured Notes, 7.200% due 6/15/12 672,688
- ----------------------------------------------------------------------------------------------
Media -- 0.4%
150,000 BBB- A.H. Belo Corp., Sr. Unsecured Unsub. Debentures,
7.750% due 6/1/27 168,071
1,263,000 BBB Cox Communications, Inc., Sr. Unsecured Notes,
7.750% due 11/1/10 1,447,339
1,073,000 BBB- News America, Inc., Sr. Unsecured Notes,
6.703% due 5/21/34 1,074,989
484,000 BBB+ Time Warner Entertainment Co. L.P., Notes,
10.150% due 5/1/12 627,339
The Walt Disney Co., Sr. Unsecured Notes:
518,000 BBB+ 6.375% due 3/1/12 561,755
311,000 BBB+ Series B, 6.750% due 3/30/06 332,117
- ----------------------------------------------------------------------------------------------
4,211,610
- ----------------------------------------------------------------------------------------------
Oil and Gas -- 0.4%
850,000 BBB- Amerada Hess Corp., Unsecured Notes, 7.300% due 8/15/31 868,684
988,000 BBB Devon Financing Corp., ULC, Unsecured Unsub. Notes,
6.875% due 9/30/11 1,098,531
2,367,000 A- Phillips Petroleum Co., Unsecured Notes,
8.500% due 5/25/05 2,527,449
- ----------------------------------------------------------------------------------------------
4,494,664
- ----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
20 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- ---------------------------------------------------------------------------------------------
Paper and Forest Products -- 0.2%
$ 748,000 BBB MeadWestvaco Corp., Unsecured Debentures,
6.800% due 11/15/32 $ 752,641
1,500,000 BBB Weyerhaeuser Co., Unsecured Unsub. Notes,
6.750% due 3/15/12 1,646,916
- ---------------------------------------------------------------------------------------------
2,399,557
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.1%
600,000 A Wyeth, Bonds, 6.500% due 2/1/34 598,672
- ---------------------------------------------------------------------------------------------
Real Estate -- 0.2%
817,000 BBB+ EOP Operating, L.P., Unsecured Notes, 6.800% due 1/15/09 903,181
1,555,000 A Socgen Real Estate Co. LLC, Non-Cumulative Preferred
Security, Series A, 7.640% due 12/29/49 (f)(h) 1,745,405
- ---------------------------------------------------------------------------------------------
2,648,586
- ---------------------------------------------------------------------------------------------
Real Estate Investment Trust -- 0.1%
1,500,000 BBB Vornado Realty L.P., Sr. Unsecured Unsub. Notes,
5.625% due 6/15/07 1,602,567
- ---------------------------------------------------------------------------------------------
Special Purpose -- 0.2%
630,000 Baa2* Fund American Cos., Inc., Notes, 5.875% due 5/15/13 634,740
623,000 A2* Natexis AMBS Co., LLC, 8.440% due 12/29/49 (f)(h) 719,084
600,000 A+ Prudential Funding LLC, Notes, 6.600% due 5/15/08 (f) 657,329
- ---------------------------------------------------------------------------------------------
2,011,153
- ---------------------------------------------------------------------------------------------
Waste Disposal -- 0.3%
1,268,000 BBB USA Waste Services Inc., Sr. Unsecured Notes,
7.000% due 7/15/28 1,339,017
1,504,000 BBB Waste Management, Inc., Sr. Unsecured Unsub. Notes,
7.375% due 8/1/10 1,711,969
- ---------------------------------------------------------------------------------------------
3,050,986
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $122,573,911) 126,557,580
- ---------------------------------------------------------------------------------------------
FOREIGN BONDS AND NOTES -- 0.5%
France -- 0.1%
761,000 BBB+ France Telecom SA, Sr. Unsecured Notes,
9.000% due 3/1/11 (h) 900,848
- ---------------------------------------------------------------------------------------------
Italy -- 0.1%
1,500,000 AA Republic of Italy, Notes, 4.625% due 6/15/05 (a) 1,547,055
- ---------------------------------------------------------------------------------------------
Luxembourg -- 0.1%
816,000 AAA AIG SunAmerica Institutional Funding II, Secured Notes,
5.750% due 2/16/09 867,912
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
21 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(e) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
Mexico -- 0.0%
United Mexican States:
$ 250,000 Baa2* Bonds, Series A, 8.000% due 9/24/22 $ 265,625
333,000 Baa2* Notes, 8.125% due 12/30/19 363,303
- -------------------------------------------------------------------------------------------
628,928
- -------------------------------------------------------------------------------------------
Netherlands -- 0.1%
824,000 BBB+ Deutsche Telekom International Finance BV, Unsecured
Unsub. Bonds, 8.750% due 6/15/30 (h) 1,026,463
- -------------------------------------------------------------------------------------------
United Kingdom -- 0.1%
975,000 Aa3* Barclays Bank PLC, Notes, 6.860% due 9/29/49 (f)(h) 1,026,902
- -------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS AND NOTES
(Cost -- $5,806,239) 5,998,108
- -------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $1,015,245,447) 1,064,600,016
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.7%
29,616,000 Federal Home Loan Bank, Discount Notes,
zero coupon due 5/3/04 (Cost -- $29,614,601) 29,614,601
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $1,044,860,048**) $1,094,214,617
- -------------------------------------------------------------------------------------------
LOANED SECURITIES COLLATERAL
167,458,024 State Street Navigator Securities Lending Trust Prime
Portfolio (Cost -- $167,458,024) $ 167,458,024
- -------------------------------------------------------------------------------------------
(a) All or a portion of this security is on loan (See Note 6).
(b) Non-income producing security.
(c) Security is segregated for "to-be-announced" securities.
(d) Security has been issued on a "to-be-announced" basis (See Note 8).
(e) All ratings are by Standard & Poor's Ratings Service, except for those
which are identified by an asterisk (*), are rated by Moody's Investors
Service.
(f) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers. This security has
been deemed liquid pursuant to guidelines approved by the Board of
Directors.
(g) Security is currently in default.
(h) Interest rate shown reflects current rate on instrument with multi-coupon
or variable rates.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See pages 30 and 31 for definitions of ratings.
See Notes to Financial Statements.
22 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 42.1%
U.S. Treasury Notes:
$35,272,000 5.875% due 11/15/05 $ 37,327,723
14,500,000 6.500% due 10/15/06 15,837,292
25,000,000 5.625% due 5/15/08 27,174,825
1,400,000 3.375% due 12/15/08 1,390,704
16,610,000 4.000% due 2/15/14 15,961,180
1,500,000 Federal Home Loan Mortgage Corp., 2.900% due 2/27/19 1,493,190
Federal National Mortgage Association:
3,100,000 1.750% due 6/16/06 3,044,367
3,450,000 2.000% due 2/9/07 3,443,962
4,900,000 6.000% due 5/15/11 5,328,755
- ----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS (Cost -- $113,220,946) 111,001,998
- ----------------------------------------------------------------------------------------------
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 44.2%
Aerospace/Defense -- 1.9%
4,200,000 BBB Northrop Grumman Corp., Notes, 8.625% due 10/15/04 4,329,847
600,000 BBB- Raytheon Co., Notes, 5.375% due 4/1/13 602,580
- ----------------------------------------------------------------------------------------------
4,932,427
- ----------------------------------------------------------------------------------------------
Automotive -- 1.5%
2,530,000 A3* DaimlerChrysler North America Holding Corp., Notes,
4.050% due 6/4/08 2,487,448
1,300,000 BBB- Lear Corp., Sr. Notes, Series B, 7.960% due 5/15/05 1,374,750
- ----------------------------------------------------------------------------------------------
3,862,198
- ----------------------------------------------------------------------------------------------
Construction and Engineering -- 0.4%
1,000,000 BBB- MDC Holdings, Inc., Sr. Notes, 5.500% due 5/15/13 976,726
- ----------------------------------------------------------------------------------------------
Containers -- 0.3%
700,000 BBB Sealed Air Corp., Sr. Notes, 5.625% due 7/15/13 (b) 707,444
- ----------------------------------------------------------------------------------------------
Energy -- 0.5%
800,000 BBB+ Andarko Finance Co., Sr. Notes, Series B, 6.750% due 5/1/11 888,924
500,000 A- Cooper Cameron Corp., Sr. Notes, 2.650% due 4/15/07 488,800
- ----------------------------------------------------------------------------------------------
1,377,724
- ----------------------------------------------------------------------------------------------
Entertainment/Media -- 3.3%
500,000 BBB- Clear Channel Communications, Inc., Sr. Notes,
4.400% due 5/15/11 481,366
Comcast Cable Communications, Inc., Exchange Notes:
300,000 BBB 8.125% due 5/1/04 300,000
1,000,000 BBB 8.500% due 5/1/27 1,240,175
See Notes to Financial Statements.
23 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- -----------------------------------------------------------------------------------------------
Entertainment/Media -- 3.3% (continued)
$ 2,400,000 BBB- Liberty Media Corp., Sr. Notes, 2.610% due 9/17/06 (c) $ 2,443,642
4,000,000 BBB+ Time Warner Inc., Notes, 6.150% due 5/1/07 4,282,360
- -----------------------------------------------------------------------------------------------
8,747,543
- -----------------------------------------------------------------------------------------------
Financial Services -- 9.8%
1,480,000 A Countrywide Home Loans Inc., Medium-Term Notes, Series L,
4.000% due 3/22/11 1,398,923
700,000 A+ Credit Suisse First Boston (USA), Inc., Notes,
6.125% due 11/15/11 750,227
2,280,000 Aa3* FleetBoston Financial Corp., Sub. Notes, 7.125% due 4/15/06 2,475,943
Ford Motor Credit Co., Global Landmark Securities:
2,000,000 A3* 6.875% due 2/1/06 2,117,822
900,000 A3* 7.000% due 10/1/13 927,176
2,000,000 AAA General Electric Capital Corp., Notes, 5.450% due 1/15/13 2,051,270
1,500,000 A3* General Motors Acceptance Corp., Notes, 7.250% due 3/2/11 1,614,615
2,300,000 Aa3* The Goldman Sachs Group, Inc., Notes, 4.750% due 7/15/13 2,191,948
2,700,000 A1* Household Finance Corp., Notes, 6.375% due 11/27/12 2,912,279
1,700,000 A1* Lehman Brothers Holdings Inc., Medium-Term Notes, Series G,
4.800% due 3/13/14 1,626,276
1,500,000 Aa3* Merrill Lynch & Co., Inc., Medium-Term Notes, Series B,
3.375% due 9/14/07 1,503,006
2,700,000 Aa3* Morgan Stanley, Notes, 6.600% due 4/1/12 2,976,526
1,400,000 A+ National Rural Utilities Cooperative Finance Corp.,
Collateral Trust Bonds, 4.750% due 3/1/14 1,353,384
2,000,000 Aa2* U.S. Bank, NA, Notes, 2.870% due 2/1/07 1,986,960
- -----------------------------------------------------------------------------------------------
25,886,355
- -----------------------------------------------------------------------------------------------
Food and Beverage -- 1.7%
2,200,000 A Diageo Finance BV, Notes, 3.000% due 12/15/06 2,198,286
2,000,000 BBB Fred Meyer, Inc., Notes, 7.450% due 3/1/08 2,251,874
- -----------------------------------------------------------------------------------------------
4,450,160
- -----------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.9%
2,300,000 Ba2* Tyco International Group SA, Notes, 6.125% due 11/1/08 2,430,767
- -----------------------------------------------------------------------------------------------
Insurance -- 1.4%
1,800,000 AAA MassMutual Global Funding II, Notes, 2.550% due 7/15/08 (b) 1,711,114
2,100,000 Aa1* New York Life Global Funding, Notes, Series 2003-1,
5.375% due 9/15/13 (b) 2,129,917
- -----------------------------------------------------------------------------------------------
3,841,031
- -----------------------------------------------------------------------------------------------
Paper and Forest Products -- 0.8%
2,200,000 BBB International Paper Co., Notes, 5.500% due 1/15/14 2,184,217
- -----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
24 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.0%
$ 2,600,000 A Wyeth, Notes, 5.500% due 2/1/14 $ 2,596,617
- -------------------------------------------------------------------------------------------------
Real Estate -- 2.0%
5,200,000 BBB Post Apartment Homes, L.P., Notes, 6.850% due 3/16/05 5,346,307
- -------------------------------------------------------------------------------------------------
Retail -- 1.8%
5,000,000 AA Wal-Mart Stores Inc., Notes, 4.550% due 5/1/13 4,857,980
- -------------------------------------------------------------------------------------------------
Telecommunications -- 5.7%
8,200,000 Baa1* Cox Enterprises Inc., Notes, 7.875% due 9/15/10 (b) 9,431,017
2,500,000 BBB+ Deutsche Telekom International Finance BV, Notes,
8.250% due 6/15/05 2,661,877
3,000,000 BBB+ Telecom Italia Capital SA, Notes, Tranche B,
5.250% due 11/15/13 (b) 2,963,256
- -------------------------------------------------------------------------------------------------
15,056,150
- -------------------------------------------------------------------------------------------------
Tobacco -- 0.8%
2,000,000 BBB Altria Group, Inc., Notes, 5.625% due 11/4/08 2,055,062
- -------------------------------------------------------------------------------------------------
Utilities -- 10.4%
1,150,000 B+ CMS Energy Corp., Sr. Notes, 7.625% due 11/15/04 1,181,625
930,000 BBB Duke Energy Field Services, LLC, Notes, 7.500% due 8/16/05 989,411
4,500,000 CCC+ El Paso Corp., Medium-Term Notes, 6.950% due 12/15/07 4,162,500
3,000,000 BBB Pepco Holdings, Inc., Notes, 5.500% due 8/15/07 3,153,804
4,400,000 Baa2* Progress Energy, Inc., Sr. Notes, 6.050% due 4/15/07 4,690,145
800,000 BB- PSE&G Energy Holdings Inc., Sr. Notes, 8.625% due 2/15/08 864,000
2,200,000 A3* Scana Corp., Medium-Term Notes, 1.570% due 11/15/06 (c) 2,202,699
900,000 A+ Southern California Gas Co., First Mortgage Bonds, Series II,
4.375% due 1/15/11 894,020
2,000,000 AA+ SP PowerAssets Ltd., Notes, 5.000% due 10/22/13 (b) 1,953,864
1,000,000 BBB- TransAlta Corp., Sr. Notes, 5.750% due 12/15/13 989,331
4,000,000 B+ Transcontinental Gas Pipe Line Corp., Notes,
6.125% due 1/15/05 4,040,000
2,300,000 Baa1* Xcel Energy Inc., Sr. Notes, Series B, 3.400% due 7/1/08 2,235,796
- -------------------------------------------------------------------------------------------------
27,357,195
- -------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $114,398,504) 116,665,903
- -------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 4.5%
1,583,642 AAA California Infrastructure PG&E-1, Series 1997-1, Class A7,
6.420% due 9/25/08 1,667,621
1,100,000 AAA Chase Funding Mortgage Loan Asset-Backed Certificates,
Series 2002-2, Class 1A5, 5.833% due 4/25/32 1,155,683
2,600,000 AAA DaimlerChrysler Auto Trust, Series 2001-C, Class A4,
4.630% due 12/6/06 2,649,969
See Notes to Financial Statements.
25 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 4.5% (continued)
$ 2,000,000 AAA Discover Card Master Trust I, Series 1996-3, Class A,
6.050% due 8/18/08 $ 2,124,922
2,500,000 AAA Ford Credit Auto Owner Trust, Series 2002-B, Class A4,
4.750% due 8/15/06 2,577,507
1,778,743 AAA Toyota Auto Receivables Owner Trust, Series 2002-C, Class A3,
2.650% due 11/15/06 1,790,103
- ------------------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost -- $12,187,503) 11,965,805
- ------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.4%
1,500,000 AAA Credit Suisse First Boston Mortgage Securities Corp.,
Series 2003-C5, Class A4, 4.900% due 12/15/36 1,474,450
LB-UBS Commercial Mortgage Trust:
1,240,000 AAA Series 2002-C4, Class A5, 4.853% due 9/15/31 1,230,318
2,000,000 AAA Series 2004-C1, Class A4, 4.568% due 1/15/31 1,910,270
1,650,000 AAA Wachovia Bank Commercial Mortgage Trust, Series 2003-C6,
Class A3, 4.957% due 8/15/35 1,668,535
- ------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost -- $6,475,861) 6,283,573
- ------------------------------------------------------------------------------------------------
SOVEREIGN BONDS -- 0.8%
Canada -- 0.8%
2,000,000 AAA Canada Mortgage and Housing Corp., Notes,
3.375% due 12/1/08 (Cost -- $1,995,104) 1,979,900
- ------------------------------------------------------------------------------------------------
WARRANTS SECURITY VALUE
- ------------------------------------------------------------------------------------------------
WARRANTS (d) -- 0.0%
150 Loral Orion Network Systems, Inc., Expires 1/15/07
(Cost -- $105) 2
- ------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $248,278,023) 247,897,181
- ------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
26 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
TRAVELERS MANAGED INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
- --------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.0%
$15,960,000 State Street Bank and Trust Co. dated 4/30/04, 0.870% due 5/3/04;
Proceeds at maturity -- $15,961,157; (Fully collateralized by
U.S. Treasury Bonds, 11.250% due 2/15/15; Market
value -- $16,281,900) (Cost -- $15,960,000) $ 15,960,000
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $264,238,023**) $263,857,181
- --------------------------------------------------------------------------------------------
(a) All ratings are by Standard & Poor's Ratings Service, except for those
which are identified by an asterisk (*), are rated by Moody's Investors
Service.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers. These securities
have been deemed liquid pursuant to guidelines approved by the Board of
Directors.
(c) Variable rate security.
(d) Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 30 and 31 for definitions of ratings.
See Notes to Financial Statements.
27 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
SMITH BARNEY MONEY MARKET PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ---------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 51.1%
$15,000,000 ABN-AMRO North America Finance Inc. mature
8/12/04 to 9/10/04 1.07% to 1.09% $ 14,949,666
18,600,000 ANZ Delaware Inc. mature 5/12/04 to 6/22/04 1.03 to 1.05 18,589,952
20,000,000 Bank America Corp. mature 6/14/04 to 7/9/04 1.04 to 1.10 19,970,548
3,900,000 Barclays US Funding LLC matures 5/21/04 1.02 3,897,790
6,300,000 CBA Delaware Finance Inc. matures 5/10/04 1.04 6,298,362
18,500,000 Danske Corp. mature 5/17/04 to 8/23/04 1.04 to 1.10 18,476,501
15,000,000 Dexia Delaware LLC mature 6/8/04 to 6/16/04 1.03 to 1.05 14,981,211
20,000,000 General Electric Capital Corp. mature
6/2/04 to 8/3/04 1.05 to 1.08 19,962,617
10,000,000 Goldman, Sachs & Co. matures 5/13/04 1.03 9,996,567
15,700,000 HBOS Treasury Services PLC mature
5/27/04 to 7/13/04 1.04 to 1.05 15,678,617
20,000,000 ING US Funding LLC mature 5/25/04 to 7/14/04 1.03 to 1.07 19,969,103
20,000,000 Morgan Stanley mature 5/3/04 to 5/10/04 1.01 to 1.03 19,995,857
10,000,000 Nationwide Building Society mature
8/23/04 to 8/31/04 1.09 to 1.10 9,964,442
5,000,000 Nordea North America Inc. matures 6/7/04 1.05 4,994,630
10,000,000 Rabobank USA Financial Corp. matures 5/3/04 1.02 9,999,433
11,500,000 Royal Bank of Scotland PLC mature
5/4/04 to 5/11/04 1.02 to 1.04 11,498,020
14,100,000 Svenska Handelsbanken Inc. mature
5/24/04 to 5/28/04 1.03 to 1.04 14,089,746
20,000,000 UBS Finance Delaware LLC matures 5/5/04 1.00 19,997,778
5,000,000 Unicredito Delaware Inc. matures 6/7/04 1.05 4,994,630
9,960,000 Westpac Capital Corp. matures 7/7/04 1.07 9,940,284
- ---------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $268,245,754) 268,245,754
- ---------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES -- 2.5%
8,089,000 Federal Home Loan Bank mature 5/26/04 to 6/4/04 1.05 to 1.13 8,081,459
5,000,000 Federal National Mortgage Association
matures 9/8/04 1.07 4,980,771
- ---------------------------------------------------------------------------------------
TOTAL AGENCY DISCOUNT NOTES
(Cost -- $13,062,230) 13,062,230
- ---------------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 3.8%
20,000,000 Wells Fargo Bank N.A. mature 5/11/04 to 5/20/04
(Cost -- $19,999,972) 1.03 19,999,972
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
28 Travelers Series Fund Inc. | 2004 Semi-Annual Report
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004
SMITH BARNEY MONEY MARKET PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -----------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 33.4%
$ 5,000,000 ABN-AMRO Bank NV matures 7/15/04 1.09% $ 5,000,000
5,000,000 Bank of Montreal matures 9/7/04 1.07 5,000,355
10,000,000 Barclays Bank PLC matures 6/30/04 1.03 10,000,160
16,500,000 BNP Paribas S.A. NY mature 5/11/04 to 7/28/04 1.04 to 1.08 16,499,885
15,000,000 Canadian Imperial Bank of Commerce NY
matures 6/8/04 1.04 15,000,025
5,000,000 Credit Agricole Indosuez matures 9/20/04 1.08 5,000,098
20,000,000 CS First Boston Corp. NY matures 5/3/04 1.05 20,000,000
10,000,000 Deutsche Bank AG matures 7/8/04 1.06 10,001,099
5,000,000 Dexia Bank NY matures 8/31/04 1.08 5,000,000
15,000,000 Fortis Bank NY matures 5/18/04 1.03 14,999,889
5,000,000 HBOS Treasury Services NY matures 6/8/04 1.05 5,000,000
5,000,000 Lloyds TSB Bank PLC NY matures 8/31/04 1.06 5,000,335
15,000,000 Nordea Bank Finland NY matures 6/18/04 1.03 15,000,066
5,000,000 Royal Bank of Scotland NY matures 5/7/04 1.12 5,000,016
8,500,000 Societe Generale NY mature 6/17/04 to 7/7/04 1.03 to 1.04 8,499,977
20,000,000 Toronto Dominion Bank NY mature
6/17/04 to 6/22/04 1.04 to 1.05 20,000,061
10,000,000 Unicredito Italiano S.p.A. mature
5/20/04 to 6/24/04 1.04 to 1.05 10,000,037
- -----------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $175,002,003) 175,002,003
- -----------------------------------------------------------------------------------
TIME DEPOSITS -- 9.2%
16,803,000 J.P. Morgan Chase Bank matures 5/3/04 1.03 16,803,000
11,500,000 Societe Generale matures 5/3/04 1.04 11,500,000
20,000,000 State Street Bank and Trust matures 5/3/04 1.03 20,000,000
- -----------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $48,303,000) 48,303,000
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $524,612,959*) $524,612,959
- -----------------------------------------------------------------------------------
*Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
29 Travelers Series Fund Inc. | 2004 Semi-Annual Report
BOND RATINGS (UNAUDITED)
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard and Poor's") -- Ratings from "AA"
to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to
show relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and
repay principal and differs from the highest rated issue only in a
small degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
bonds in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to
pay interest and repay principal. Whereas they normally exhibit
adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for bonds in this
category than in higher rated categories.
BB, B, -- Bonds rated "BB", "B", "CCC", "CC" and "C" are regarded, on
CCC, CC balance, as pre- dominantly speculative with respect to capacity
and C to pay interest and repay principal in accordance with the terms
of the obligation. "BB" represents the lowest degree of
speculation and "C" the highest degree of speculation. While such
bonds will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or
major risk exposures to adverse conditions.
D -- Bonds rated "D" are in default, and payment of interest and/or
repayment of princi- pal is in arrears.
Moody's Investors Service ("Moody's") -- Numerical modifiers 1, 2 and 3 may be
applied to each generic rating from "Aa" to "Caa," where 1 is the highest and 3
the lowest rating within its generic category.
Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred
to as "gilt edge." Interest pay- ments are protected by a large or
by an exceptionally stable margin and principal is secure. While
the various protective elements are likely to change, such changes
as can be visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa -- Bonds rated "Aa" are judged to be of high quality by all
standards. Together with the "Aaa" group they comprise what are
generally known as high grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in
"Aaa" securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which
make the long-term risks appear somewhat larger than in "Aaa"
securities.
A -- Bonds rated "A" possess many favorable investment attributes and
are to be consid- ered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate,
but elements may be present that suggest a susceptibility to
impairment some time in the future.
Baa -- Bonds rated "Baa" are considered to be medium grade obligations,
i.e., they are neither highly protected nor poorly secured.
Interest payment and principal security appear adequate for the
present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba -- Bonds rated "Ba" are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection
of interest and principal payments may be very moderate thereby
not well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds in this class.
30 Travelers Series Fund Inc. | 2004 Semi-Annual Report
BOND RATINGS (UNAUDITED) (CONTINUED)
B -- Bonds rated "B" generally lack characteristics of the desirable
investments. Assurance of interest and principal payments or
maintenance of other terms of the contract over any long period of
time may be small.
Caa and Ca -- Bonds rated "Caa" and "Ca" are of poor standing. Such issues may
be in default or present elements of danger with respect to
principal or interest.
C -- Bonds rated "C" are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
NR -- Indicates that the bond is not rated by Standard & Poor's or
Moody's.
31 Travelers Series Fund Inc. | 2004 Semi-Annual Report
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2004
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------
ASSETS:
Investments, at value
(Cost -- $1,015,245,447 and
$248,278,023, respectively) $1,064,600,016 $247,897,181 --
Short-term investments, at amortized cost 29,614,601 15,960,000 $524,612,959
Loaned securities collateral, at value
(Cost -- $167,458,024) (Note 6) 167,458,024 -- --
Cash 986 854 55
Receivable for securities sold 10,015,371 -- --
Dividends and interest receivable 5,545,781 3,829,233 348,025
Receivable for Fund shares sold 128,303 72,411 --
Receivable for open forward foreign currency
contracts (Note 7) 12,102 -- --
Prepaid expenses 253 156 --
Other assets 22,955 13,155 --
- ---------------------------------------------------------------------------------------------
Total Assets 1,277,398,392 267,772,990 524,961,039
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payable for loaned securities collateral (Note 6) 167,458,024 -- --
Payable for securities purchased 19,113,279 -- 1,528,091
Payable for Fund shares reacquired 627,775 266,417 --
Management fees payable 723,869 143,492 217,381
Payable for open forward foreign currency
contracts (Note 7) 7,420 -- --
Dividends payable -- -- 113,388
Accrued expenses 39,166 22,374 58,127
- ---------------------------------------------------------------------------------------------
Total Liabilities 187,969,533 432,283 1,916,987
- ---------------------------------------------------------------------------------------------
Total Net Assets $1,089,428,859 $267,340,707 $523,044,052
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 667 $ 233 $ 5,230
Capital paid in excess of par value 1,024,963,425 270,075,125 523,038,323
Undistributed net investment income 9,286,220 2,411,250 --
Accumulated net realized gain (loss) from
investment transactions 5,817,615 (4,765,059) 499
Net unrealized appreciation (depreciation) of
investments and foreign currencies 49,360,932 (380,842) --
- ---------------------------------------------------------------------------------------------
Total Net Assets $1,089,428,859 $267,340,707 $523,044,052
- ---------------------------------------------------------------------------------------------
Shares Outstanding 66,704,085 23,262,679 523,043,553
- ---------------------------------------------------------------------------------------------
Net Asset Value $16.33 $11.49 $1.00
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
32 Travelers Series Fund Inc. | 2004 Semi-Annual Report
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended April 30, 2004
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest (Note 6) $11,167,223 $ 5,089,571 $2,962,185
Dividends 6,495,171 -- --
Less: Foreign withholding tax (60,500) -- --
- ------------------------------------------------------------------------------
Total Investment Income 17,601,894 5,089,571 2,962,185
- ------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 3) 4,254,621 851,619 1,370,245
Custody 55,926 14,167 27,421
Audit and legal 19,033 14,016 20,023
Shareholder communications 18,785 6,953 15,691
Directors' fees 11,859 4,861 9,723
Transfer agency services 2,493 2,474 2,819
Other 3,783 4,908 2,050
- ------------------------------------------------------------------------------
Total Expenses 4,366,500 898,998 1,447,972
- ------------------------------------------------------------------------------
Net Investment Income 13,235,394 4,190,573 1,514,213
- ------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES (NOTES 4 AND 7):
Realized Gain From:
Investment transactions 47,535,539 31,347 455
Foreign currency transactions 4,388 -- --
- ------------------------------------------------------------------------------
Net Realized Gain 47,539,927 31,347 455
- ------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) From:
Investments (2,871,349) (1,465,935) --
Foreign currencies (7,942) -- --
- ------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) (2,879,291) (1,465,935) --
- ------------------------------------------------------------------------------
Net Gain (Loss) on Investments and
Foreign Currencies 44,660,636 (1,434,588) 455
- ------------------------------------------------------------------------------
Increase in Net Assets From Operations $57,896,030 $ 2,755,985 $1,514,668
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
33 Travelers Series Fund Inc. | 2004 Semi-Annual Report
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 2004 (unaudited) and the Year Ended October
31, 2003
MFS Total Return Portfolio 2004 2003
- -------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 13,235,394 $ 21,288,274
Net realized gain (loss) 47,539,927 (10,422,982)
Increase (decrease) in net unrealized appreciation (2,879,291) 99,488,552
- ----------------------------------------------------------------------------------
Increase in Net Assets From Operations 57,896,030 110,353,844
- ----------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (22,438,758) (29,011,184)
- ----------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to
Shareholders (22,438,758) (29,011,184)
- ----------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 49,727,039 93,894,483
Net asset value of shares issued for reinvestment 22,438,758
of dividends 29,011,184
Cost of shares reacquired (15,153,558) (37,255,559)
- ----------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 57,012,239 85,650,108
- ----------------------------------------------------------------------------------
Increase in Net Assets 92,469,511 166,992,768
NET ASSETS:
Beginning of period 996,959,348 829,966,580
- ----------------------------------------------------------------------------------
End of period* $1,089,428,859 $996,959,348
- ----------------------------------------------------------------------------------
* Includes undistributed net investment income of: $9,286,220 $18,485,196
- ----------------------------------------------------------------------------------
See Notes to Financial Statements.
34 Travelers Series Fund Inc. | 2004 Semi-Annual Report
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Six Months Ended April 30, 2004 (unaudited)
and the Year Ended October 31, 2003
Travelers Managed Income Portfolio 2004 2003
- ---------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 4,190,573 $ 9,978,116
Net realized gain (loss) 31,347 (4,136,789)
(Increase) decrease in net unrealized depreciation (1,465,935) 17,013,830
- --------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,755,985 22,855,157
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (10,421,800) (12,334,280)
Net realized gains -- (824,471)
- --------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (10,421,800) (13,158,751)
- --------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 23,319,307 42,089,916
Net asset value of shares issued for reinvestment of dividends 10,421,800 13,158,751
Cost of shares reacquired (11,111,894) (20,344,929)
- --------------------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 22,629,213 34,903,738
- --------------------------------------------------------------------------------------------
Increase in Net Assets 14,963,398 44,600,144
NET ASSETS:
Beginning of period 252,377,309 207,777,165
- --------------------------------------------------------------------------------------------
End of period* $267,340,707 $252,377,309
- --------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $2,411,250 $8,642,477
- --------------------------------------------------------------------------------------------
See Notes to Financial Statements.
35 Travelers Series Fund Inc. | 2004 Semi-Annual Report
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Six Months Ended April 30, 2004 (unaudited)
and the Year Ended October 31, 2003
Smith Barney Money Market Portfolio 2004 2003
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,514,213 $ 5,028,942
Net realized gain 455 44
- ----------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,514,668 5,028,986
- ----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 2):
Net investment income (1,514,213) (5,028,942)
- ----------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (1,514,213) (5,028,942)
- ----------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 66,667,153 407,090,281
Net asset value of shares issued for reinvestment of dividends 1,536,119 5,245,087
Cost of shares reacquired (144,471,139) (545,710,459)
- ----------------------------------------------------------------------------------------------
Decrease in Net Assets From
Fund Share Transactions (76,267,867) (133,375,091)
- ----------------------------------------------------------------------------------------------
Decrease in Net Assets (76,267,412) (133,375,047)
NET ASSETS:
Beginning of period 599,311,464 732,686,511
- ----------------------------------------------------------------------------------------------
End of period $ 523,044,052 $ 599,311,464
- ----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
36 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The MFS Total Return Portfolio, Travelers Managed Income Portfolio and Smith
Barney Money Market 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: Strategic Equity Portfolio,
AIM Capital Appreciation Portfolio, Salomon Brothers Strategic Total Return
Bond Portfolio, Pioneer Strategic Income Portfolio, SB Adjustable Rate Income
Portfolio, Smith Barney High Income Portfolio, Smith Barney Large Cap Value
Portfolio, Smith Barney International All Cap Growth Portfolio, Smith Barney
Large Capitalization Growth Portfolio, Van Kampen Enterprise Portfolio, Smith
Barney Mid Cap Core Portfolio and Smith Barney Aggressive Growth Portfolio.
Shares of the Company are offered only to insurance company separate accounts
that fund certain variable annuity and variable life insurance contracts. The
financial statements and financial highlights for the other funds are presented
in separate shareholder reports.
The following are significant accounting policies consistently followed by the
Funds and are in conformity with generally accepted accounting principles
("GAAP"): (a) security transactions are accounted for on trade date; (b) the
Smith Barney Money Market Portfolio uses the amortized cost method for valuing
all of its investments; the MFS Total Return Portfolio and Travelers Managed
Income Portfolio use the amortized cost method for valuing securities with
maturities less than 60 days, accordingly, the cost of securities plus accreted
discount or minus amortized premium approximates value; (c) securities traded
on national securities markets are valued at the closing prices on such
markets; fixed-income securities are valued at the mean between the bid and
asked prices provided by an independent pricing service; securities for which
no sales price was reported and U.S. government agencies and obligations are
valued at the mean between the bid and asked prices; 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; (d) securities for which market quotations
are not available will be valued in good faith at fair value by or under the
direction of the Board of Directors; (e) 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
37 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Fund determines the existence of a dividend declaration after exercising
reasonable due diligence; (f ) gains or losses on the sale of securities are
calculated by using the specific identification method; ( g) interest income,
adjusted for amortization of premium and accretion of discount, is recorded on
an accrual basis; (h) dividends and distributions to shareholders are recorded
on the ex-dividend date; (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 U.S. generally accepted accounting principles; (k) the Funds
intend to comply with the applicable provisions of the Internal Revenue Code of
1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise taxes; and (l) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Dividends
The Smith Barney Money Market Portfolio declares and records a dividend of
substantially all its net investment income on each business day. Such
dividends are paid or reinvested monthly on the payable date.
The dividend policy for MFS Total Return Portfolio and Travelers Managed Income
Portfolio is to distribute dividends annually. Capital gain distributions, if
any, are taxable to shareholders, and are declared and paid at least annually.
3. Management Agreement and Transactions with Affiliated Persons
Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary
of Citigroup Inc. ("Citigroup"), acts as investment manager of the
38 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Smith Barney Money Market Portfolio ("SBMM"). Travelers Investment Adviser,
Inc. ("TIA") and Travelers Asset Management International Company, LLC
("TAMIC"), affiliates of SBFM, act as the investment managers of the MFS Total
Return Portfolio ("MFSTR") and the Travelers Managed Income Portfolio ("TMI"),
respectively. SBMM pays SBFM a management fee calculated at an annual rate of
0.50% of the average daily net assets of the SBMM. MFSTR pays TIA a management
fee calculated at an annual rate of 0.80% of the average daily net assets of
MFSTR. TMI pays TAMIC a management fee calculated at an annual rate of 0.65% of
the average daily net assets of TMI. These fees are calculated daily and paid
monthly.
TIA has a sub-advisory agreement with Massachusetts Financial Services Company
("MFS"). Pursuant to the sub-advisory agreement, MFS is responsible for the
day-to-day portfolio operations and investment decisions for MFSTR and is
compensated by TIA for such services at an annual rate of 0.375% of the average
daily net assets of MFSTR.
TIA has entered into a Sub-Administrative Services Agreement with SBFM. TIA
pays SBFM, as sub-administrator, a fee calculated at an annual rate of 0.10% of
the average daily net assets of MFSTR.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent. PFPC 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 six months ended April 30, 2004, each of the Funds paid transfer agent fees
of $2,500 to CTB.
During the six months ended April 30, 2004, Citigroup Global Markets Inc.
("CGM"), another indirect wholly-owned subsidiary of Citigroup, and its
affiliates did not receive any brokerage commissions from the Funds.
Most of the officers and one Director of the Company are employees of Citigroup
or its affiliates.
39 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. Investments
During the six months ended April 30, 2004, 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:
MFSTR TMI
-----------------------------------------------------------------------
Purchases $477,072,791 $218,800,193
----------------------------------------------------------------------
Sales 383,710,048 182,918,983
----------------------------------------------------------------------
At April 30, 2004, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
MFSTR TMI
---------------------------------------------------------------------
Gross unrealized appreciation $ 64,007,479 $ 3,264,433
Gross unrealized depreciation (14,652,910) (3,645,275)
---------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 49,354,569 $ (380,842)
---------------------------------------------------------------------
5. Repurchase Agreements
When entering into repurchase agreements, it is the Funds' policy that a
custodian takes possession of the underlying collateral securities, the value
of which at least equals the principal amount of the repurchase transaction,
including accrued interest. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market to
ensure the adequacy of the collateral. If the seller defaults and the value of
the collateral declines or if bankruptcy proceedings are commenced with respect
to the seller of the security, realization of the collateral by the Funds may
be delayed or limited.
6. Lending of Portfolio Securities
The Funds have an agreement with their custodian whereby the custodian may lend
securities owned by the Funds to brokers, dealers and other financial
organizations. Fees earned by the Funds on securities lending are recorded as
interest income. Loans of securities by the Funds are collateralized by cash,
U.S. government securities, high quality money market instruments or other
securities that are maintained at all times in an amount at least equal to the
current market value of the loaned securities, plus a margin which may vary
depending on the type of securities loaned. The Fund maintains exposure for the
risk of any losses in the investment of amounts received as collateral.
40 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At April 30, 2004, MFSTR loaned securities having a market value of
$178,385,405. MFSTR received cash collateral amounting to $167,458,024 which
was invested in State Street Navigator Securities Lending Trust Prime
Portfolio. In addition, MFSTR received securities collateral amounting to
$15,407,813, which is maintained in a segregated account by the custodian.
Income earned by MFSTR from securities lending for the six months ended April
30, 2004 was $85,475.
At April 30, 2004, SBMM and TMI did not have any securities on loan.
7. Forward Foreign Currency Contracts
MFSTR may 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 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 April 30, 2004, MFSTR had open forward foreign currency contracts as
described below. The unrealized gain (loss) on the open contracts reflected in
the accompanying financial statements were as follows:
MFS Total Return Portfolio
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
--------------------------------------------------------------
Contracts to Sell:
Swiss Franc 1,332,826 $1,026,711 5/3/04 $(7,420)
--------------------------------------------------------------
Contracts to Buy:
Euro 855,226 1,024,262 5/3/04 12,102
--------------------------------------------------------------
Total Unrealized Gain on Open Forward
Foreign Currency Contracts $ 4,682
--------------------------------------------------------------
41 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
8. Securities Traded on a To-Be-Announced Basis
MFSTR and TMI may trade securities on a to-be-announced ("TBA") basis. In a TBA
transaction, the Fund commits to purchasing or selling securities for which
specific information is not yet known at the time of the trade, particularly
the face amount and maturity date in Government National Mortgage Association
("GNMA") transactions. Securities purchased on a TBA basis are not settled
until they are delivered to the Fund, normally 15 to 45 days later. Beginning
on the date the Fund enters into a TBA transaction, cash, U.S. government
securities or other liquid high grade debt obligations are segregated in an
amount equal in value to the purchase price of the TBA security. These
transactions are subject to market fluctuations and their current value is
determined in the same manner as for other securities.
At April 30, 2004, MFSTR held TBA securities with a total cost of $1,984,609.
9. Capital Shares
At April 30, 2004, the Company had six billion shares of capital stock
authorized with a par value of $0.00001 per share. Each share of a Fund
represents an identical interest in that Fund with each share of the same Fund
and has an equal entitlement to any dividends and distributions made by the
Fund.
Transactions in shares of each Fund were as follows:
Six Months
Ended Year Ended
April 30, 2004 October 31, 2003
-------------------------------------------------------------------
MFS Total Return Portfolio
Shares sold 3,041,364 6,252,642
Shares issued on reinvestment 1,385,108 2,044,481
Shares reacquired (923,847) (2,554,938)
-------------------------------------------------------------------
Net Increase 3,502,625 5,742,185
-------------------------------------------------------------------
Travelers Managed Income Portfolio
Shares sold 1,992,746 3,626,976
Shares issued on reinvestment 907,032 1,187,613
Shares reacquired (950,892) (1,762,583)
-------------------------------------------------------------------
Net Increase 1,948,886 3,052,006
-------------------------------------------------------------------
Smith Barney Money Market Portfolio
Shares sold 66,667,153 407,090,281
Shares issued on reinvestment 1,536,119 5,245,087
Shares reacquired (144,471,139) (545,710,459)
-------------------------------------------------------------------
Net Decrease (76,267,867) (133,375,091)
-------------------------------------------------------------------
42 Travelers Series Fund Inc. | 2004 Semi-Annual Report
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
10.Additional Information
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.
CAM has begun to take corrective actions. CAM will pay to the applicable funds
approximately $17 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.
43 Travelers Series Fund Inc. | 2004 Semi-Annual Report
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
MFS Total Return Portfolio 2004/(1)/ 2003 2002 2001 2000 1999/(2)/
- -----------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $15.77 $14.44 $16.08 $17.16 $16.22 $16.23
- -----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income/(3)/ 0.19 0.34 0.39 0.42 0.54 0.52
Net realized and unrealized gain
(loss)/(3)/ 0.72 1.49 (0.98) (0.42) 1.43 0.72
- -----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.91 1.83 (0.59) (0.00)* 1.97 1.24
- -----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.35) (0.50) (0.44) (0.48) (0.46) (0.37)
Net realized gains -- -- (0.61) (0.60) (0.57) (0.88)
- -----------------------------------------------------------------------------------------------
Total Distributions (0.35) (0.50) (1.05) (1.08) (1.03) (1.25)
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.33 $15.77 $14.44 $16.08 $17.16 $16.22
- -----------------------------------------------------------------------------------------------
Total Return/(4)/ 5.79%++ 13.05% (3.59)% (0.22)% 12.77% 7.62%
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $1,089 $997 $830 $804 $697 $622
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.82%+ 0.82% 0.83% 0.83% 0.83% 0.84%
Net investment income/(3)/ 2.49+ 2.37 2.81 3.08 3.42 3.11
- ---------------------------------------------------------------------------------------------
Portfolio Turnover Rate 37% 49% 81% 88% 108% 97%
- -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) Effective November 1, 2001, the Fund adopted a change in the accounting
method that requires the Fund to amortize premiums and accrete all
discounts. Without the adoption of this change, for the year ended October
31, 2002, those amounts would have been $0.40, $0.99 and 2.91% for net
investment income, net realized and unrealized loss and the ratio of net
investment income to average net assets, respectively. Per share
information, ratios and supplemental data for the periods prior to November
1, 2001 have not been restated to reflect this change in presentation.
(4) 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.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
44 Travelers Series Fund Inc. | 2004 Semi-Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Travelers Managed Income Portfolio 2004/(1)(2)/ 2003/(2)/ 2002/(2)/ 2001/(2)/ 2000/(2)/ 1999/(2)/
- --------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $11.84 $11.38 $12.57 $11.58 $11.49 $11.65
- --------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income/(3)/ 0.19 0.50 0.56 0.71 0.76 0.65
Net realized and unrealized gain
(loss)/(3)/ (0.06) 0.69 (1.07) 0.83 (0.24) (0.45)
- --------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 0.13 1.19 (0.51) 1.54 0.52 0.20
- --------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.48) (0.68) (0.63) (0.55) (0.43) (0.29)
Net realized gains -- (0.05) (0.05) -- -- (0.07)
- --------------------------------------------------------------------------------------------------------
Total Distributions (0.48) (0.73) (0.68) (0.55) (0.43) (0.36)
- --------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.49 $11.84 $11.38 $12.57 $11.58 $11.49
- --------------------------------------------------------------------------------------------------------
Total Return/(4)/ 1.11%++ 10.85% (4.06)% 13.50% 4.55% 1.75%
- --------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $267 $252 $208 $221 $151 $113
- --------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.69%+ 0.68% 0.69% 0.68% 0.69% 0.76%
Net investment income/(3)/ 3.20+ 4.34 4.68 5.76 6.56 5.57
- --------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 74% 163% 177% 194% 181% 411%
- --------------------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) Effective November 1, 2001, the Fund adopted a change in the accounting
method that requires the Fund to amortize premiums and accrete all
discounts. Without the adoption of this change, for the year ended October
31, 2002, those amounts would have been $0.60, $1.11 and 5.02% for net
investment income, net realized and unrealized loss and the ratio of net
investment income to average net assets, respectively. Per share
information, ratios and supplemental data for the periods prior to November
1, 2001 have not been restated to reflect this change in presentation.
(4) 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.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
45 Travelers Series Fund Inc. | 2004 Semi-Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of capital stock outstanding throughout each year ended October 31,
unless otherwise noted:
Smith Barney
Money Market Portfolio 2004/(1)(2)/ 2003/(2)/ 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------
Net investment income 0.003 0.007 0.014 0.044 0.057 0.046
Distributions from net investment income (0.003) (0.007) (0.014) (0.044) (0.057) (0.046)
- ---------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------
Total Return/(3)/ 0.27%++ 0.74% 1.40% 4.46% 5.88% 4.66%
- ---------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $523 $599 $733 $605 $319 $277
- ---------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.53%+ 0.53% 0.53% 0.53% 0.53% 0.54%
Net investment income 0.55+ 0.75 1.38 4.17 5.75 4.58
- ---------------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) 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.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
46 Travelers Series Fund Inc. | 2004 Semi-Annual Report
TRAVELERS SERIES
FUND INC.
DIRECTORS OFFICERS (continued)
A.E. Cohen Robert I. Frenkel
Robert A. Frankel Secretary and
Michael E. Gellert Chief Legal Officer
R. Jay Gerken, CFA
Chairman INVESTMENT
Rainer Greeven MANAGERS
Susan M. Heilbron Smith Barney Fund
Management LLC
OFFICERS Travelers Investment
R. Jay Gerken, CFA Adviser, Inc.
Chairman, President and Travelers Asset Management
Chief Executive Officer International Company, LLC
Andrew B. Shoup CUSTODIAN
Senior Vice President State Street Bank and
and Chief Administrative Trust Company
Officer
ANNUITY
Gene Collins ADMINISTRATION
Vice President and Travelers Annuity
Investment Officer Investor Services
One Cityplace
Kurt Lin Hartford, CT 06103-3415
Vice President and
Investment Officer
Martin R. Hanley
Investment Officer
Andrew Beagley
Chief Anti-Money
Laundering Compliance
Officer
Kaprel Ozsolak
Controller
Travelers Series Fund Inc.
MFS Total Return Portfolio
Travelers Managed Income Portfolio
Smith Barney Money Market Portfolio
The Funds are separate investment funds of the Travelers Series Fund Inc., a
Maryland corporation.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available without
charge, upon request, by telephoning the Funds (toll-free) at 1-800-451-2010
and by visiting the SEC's web site at www.sec.gov.
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- MFS Total Return Portfolio, Travelers Managed
Income Portfolio and Smith Barney Money Market Portfolio.
TRAVELERS SERIES FUND INC.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
IN0804 6/04 04-6787
ITEM 2. CODE OF ETHICS.
Not Applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and
principal financial officer have concluded that the
registrant's disclosure controls and procedures (as
defined in Rule 30a- 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) Not applicable.
(b) Attached hereto.
Exhibit 99.CERT Certifications pursuant to section 302
of the Sarbanes-Oxley Act of 2002
Exhibit 99.906CERT Certifications pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this Report
to be signed on its behalf by the undersigned, there unto duly authorized.
Travelers Series Fund Inc.
By: /s/ R. Jay Gerken
-----------------------------------
(R. Jay Gerken)
Chief Executive Officer of
Travelers Series Fund Inc.
Date: July 8, 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: July 8, 2004
By: /s/ Andrew B. Shoup
-----------------------------------
(Andrew B. Shoup)
Chief Administrative Officer of
Travelers Series Fund Inc.
Date: July 8, 2004