Prudential Series Fund, Inc.

N-CSR 1 dncsr.htm PRUDENTIAL SERIES FUND, INC. - ANNUAL REPORT Prudential Series Fund, Inc. - Annual Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-3623

The Prudential Series Fund, Inc.

Exact name of registrant as specified in charter:

Gateway Center 3,

100 Mulberry Street,

Newark, New Jersey

07102

Address of principal executive offices:

Zip code

Jonathan D. Shain

Gateway Center 3,

100 Mulberry Street,

Newark, New Jersey 07102

Name and address of agent for service:

Registrant’s telephone number, including area code: 973-802-6469

Date of fiscal year end: 12/31/03

Date of reporting period: 12/31/03

Item 1 – Reports to Stockholders – [INSERT REPORT]


VARIABLE LIFE INSURANCE		ANNUAL REPORT		DECEMBER 31, 2003

Variable Universal Life

VARIABLE LIFE INSURANCE

¨	Prudential’s Survivorship Preferred^®

¨	Prudential’s Variable Universal Life

¨	Pruco Life’s Variable Universal Life^®

¨	Pruco Life’s Survivorship Variable Universal Life

¨	Pruco Life of New Jersey’s Survivorship Variable Universal Life

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The Prudential Insurance Company of America

751 Broad Street, Newark, NJ 07102-3777

Pruco Life Insurance Company

Pruco Life Insurance Company of New Jersey

213 Washington Street, Newark, NJ 07102-2992

Pruco Life Insurance Company is not licensed to do business in New York

IFS-2004-A072363

This report may be used with the public only when preceded or accompanied by current prospectuses for The Prudential Series Fund, Inc.; the applicable variable life product; and the current Monthly Performance Review for the applicable product. The Monthly Performance Review shows historical investment performance after the deduction of investment management fees, investment-related expenses, and the product’s mortality and expense risk charge.

For variable life insurance products, additional contract charges include the cost of insurance, administrative, sales, and any applicable withdrawal or surrender charges. These charges will reduce the rates of return shown on the Monthly Performance Review.

The contract’s prospectus contains hypothetical performance illustrations that show the effects of performance on various assumptions regarding the cost of insurance protection You may also obtain a personalized illustration of historical performance that reflects the cost of your policy’s insurance protection. Read them carefully before investing or sending money.

Investors should carefully consider the contract and the underlying portfolios’ investment objectives, risks, and charges and expenses carefully before investing. The contract’s prospectus and the underlying portfolios’ prospectus contain information relating to investment objectives, risks, and charges and expenses, as well as other important information. Read them carefully before investing or sending money.

Survivorship Preferred is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777. Variable Universal Life is issued by Pruco Life Insurance Company, 213 Washington Street, Newark, NJ 07102-2992 (in New York, issued by The Prudential Insurance Company of America). Survivorship Variable Universal Life is issued by Pruco Life Insurance Company (except in New Jersey and New York where the issuer is Pruco Life Insurance Company of New Jersey), both located at 21 3 Washington Street, Newark, NJ 07102-2992. Variable Life is distributed by Pruco Securities LLC, member SIPC, 751 Broad Street, Newark, NJ 07102-3777. All are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations.

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The Prudential Insurance Company of America

Pruco Life Insurance Company

Pruco Life Insurance Company of New Jersey

Notice to Policyholders, dated December 30, 2003

As part of our general authority to restrict transfers we recently adopted the following rule:

Effective January 1, 2004, we will allow you to effect up to 20 transfers each calendar year by telephone, fax, electronic means, or by mail. Once that limit has been reached, we will accept subsequent transfer requests only if they are in a form acceptable to us, bear an original signature in ink, and are sent to us by U.S. regular mail.

After you have submitted 20 transfers in a calendar year, a subsequent transfer request by telephone, fax or electronic means will be rejected, even in the event that it is inadvertently processed.

Currently, certain transfers effected systematically under either a dollar cost averaging or an automatic rebalancing program described in your prospectus do not count towards the limit of 20 transfers. In the future, we may count such transfers towards the limit. In the event of such a change, we will notify you.

Pruco Life Insurance Company

Supplement dated December 30, 2003

Variable Life Insurance Prospectuses dated May 1, 2003

Your prospectus is amended as follows:

As part of our general authority to restrict transfers we recently adopted the following rule:

After you have submitted 20 transfers in a calendar year, a subsequent transfer request by telephone, fax or electronic means will be rejected, even in the event that it is inadvertently processed.

Pruco Life Insurance Company of New Jersey

Supplement dated December 30, 2003

Variable Life Insurance Prospectuses dated May 1, 2003

Your prospectus is amended as follows:

As part of our general authority to restrict transfers we recently adopted the following rule:

After you have submitted 20 transfers in a calendar year, a subsequent transfer request by telephone, fax or electronic means will be rejected, even in the event that it is inadvertently processed.

THE PRUDENTIAL SERIES FUND, INC.

Diversified Conservative Growth Portfolio

Jennison 20/20 Focus Portfolio

Value Portfolio

PROSPECTUS DATED MAY 1, 2003

SUPPLEMENT DATED JANUARY 14, 2004

The following amends the section of the prospectus entitled “How the Fund is Managed—Portfolio Managers”:

Effective as of January 13, 2004, Tom Kolefas has been replaced as a portfolio manager. David A. Kiefer and Avi Z. Berg are the portfolio managers of the value portion of the Diversified Conservative Growth Portfolio. Mr. Kiefer is the portfolio manager of the value portion of the Jennison 20/20 Focus Portfolio. Mr. Kiefer and Mr. Berg are the portfolio managers of the Value Portfolio.

David A. Kiefer, CFA, is a Senior Vice President of Jennison, which he joined in September 2000. He joined Prudential’s management training program in 1986. From 1988 to 1990, Mr. Kiefer worked at Prudential Power Funding Associates, making loans to the energy industry. He then left to attend business school, rejoining Prudential in equity asset management in 1992. Mr. Kiefer became a portfolio manager in 1994 at Prudential. Mr. Kiefer earned a B.S. from Princeton University and an M.B.A. from Harvard Business School.

Avi Z. Berg is a Vice President of Jennison, which he joined in January 2001. Prior to joining Jennison, he was with Goldman Sachs Asset Management from 1997 to 2000 as an Equity Research Associate for their small and mid cap value funds. From 1995 to 1997, Mr. Berg worked in equity research at Schroder Wertheim & Co. and Fir Tree Partners. From 1991 to 1995, he was a consultant with Price Waterhouse LLP. Mr. Berg received his A.B. in Economics magna cum laude from Harvard University in 1991 and his M.B.A. in Finance and Accounting with honors and distinctions from Columbia Business School in 1997.

THE PRUDENTIAL SERIES FUND, INC.

SP Technology Portfolio

PROSPECTUS DATED MAY 1, 2003

SUPPLEMENT DATED JANUARY 20, 2004

Effective on or about January 20, 2004, The Dreyfus Corporation will replace Alliance Capital Management, L.P. (Alliance) as subadviser to the SP Technology Portfolio (formerly, SP Alliance Technology Portfolio).

Effective on or about January 20, 2004 each section of the prospectus is replaced or supplemented as noted below:

INVESTMENT OBJECTIVES AND PRINCIPAL STRATEGIES OF THE PORTFOLIOS

SP Technology Portfolio

Investment Objective: long-term growth of capital.

We normally invest at least 80% of the Portfolio’s investable assets (net assets plus any borrowings made for investment purposes) in securities of companies that use technology extensively in the development of new or improved products or processes. The Portfolio also may invest up to 25% of its total assets in foreign securities. The Portfolio’s investments in stocks may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings (IPOs). Technology stocks, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall stock market. While we make every effort to achieve our objective, we can’t guarantee success and it is possible that you could lose money. This Portfolio is advised by The Dreyfus Corporation.

Principal Risks:

company risk

industry/sector risk

market risk

credit risk

interest rate risk

short sale risk

derivatives risk

initial public offering (IPO)

smaller company risk

foreign investment risk

liquidity risk

technology company risk

growth stock risk

management risk

technology sector risk

. . . . . . .

PRINCIPAL RISKS

Growth stock risk. Investors often expect growth companies to increase their earnings at a certain rate. If these expectations are not met, investors can punish the stocks inordinately, even if earnings do increase. In addition, growth stocks typically lack the dividend yield that can cushion stock prices in market downturns.

Initial public offering (IPO) risk. The prices of securities purchased in initial public offerings (IPOs) can be very volatile. The effect of IPOs on the performance of a Portfolio depends on a variety of factors, including the number of IPOs the Portfolio invests in relative to the size of the Portfolio and whether and to what extent a security purchased in an IPO appreciates or depreciates in value. As a Portfolio’s asset base increases, IPOs often have a diminished effect on a Portfolio’s performance.

Smaller company risk. The shares of smaller companies tend to trade less frequently than those of larger, more established companies, which can have an adverse effect on the pricing of these securities and on a Portfolio’s ability to sell these securities. In the case of small cap technology companies, the risks associated with technology companies (see technology company risk below) are magnified.

Technology company risk. Technology companies, especially small cap technology companies, involve greater risk because their revenue and/or earnings tend to be less predictable (and some companies may be experiencing significant losses) and their share prices tend to be more volatile. Certain technology companies may have limited product lines, markets or financial resources, or may depend on a limited management group. In addition, these companies are strongly affected by worldwide technological developments, and their products and services may not be economically successful or may quickly become outdated. Investor perception may play a greater role in determining the day-to-day value of technology stocks than it does in other sectors. Portfolio investments made in anticipation of future products and services may decline dramatically in value if the anticipated products or services are delayed or cancelled.

Technology sector risk. The technology sector has historically been among the most volatile sectors of the stock market. Because the SP Technology Portfolio concentrates its investments in the technology sector, its performance will be affected by developments in the technology sector.

MORE DETAILED INFORMATION ON HOW THE PORTFOLIOS INVEST

Investment Objectives and Policies

SP Technology Portfolio

The investment objective of this Portfolio is growth of capital. Current income is only an incidental consideration. While we make every effort to achieve our objective, we can’t guarantee success and it is possible that you could lose money.

In order to pursue the investment objective of the Portfolio, the Portfolio normally invests at least 80% of its investable assets in securities of companies that use technology extensively in the development of new or improved products or processes. The Portfolio will not change this policy unless it provides 60 days prior written notice to contract owners. Up to 25% of the Portfolio’s assets may be invested in foreign securities. The Portfolio’s stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings (IPOs).

In choosing stocks, the Portfolio looks for technology companies with the potential for strong earnings or revenue growth rates, although some of the companies in which the Portfolio invests may currently be experiencing losses. The Portfolio focuses on those technology sectors that the subadviser expects to outperform on a relative scale. The more attractive sectors are overweighted. Among the sectors evaluated are those that develop, produce or distribute products or services in the computer, semi-conductor, electronics, communications, healthcare, biotechnology, computer software and hardware, electronic components and systems, network and cable broadcasting, telecommunications, defense and aerospace, and environmental sectors.

The Portfolio typically sells a stock when the subadviser believes there is a more attractive alternative, the stock’s valuation is excessive or there are deteriorating fundamentals, such as a loss of competitive advantage, a failure in management execution or deteriorating capital structure. The Portfolio may also sell stocks when the subadviser’s valuation of a sector has changed.

The Portfolio may, but is not required to, use derivatives, such as futures and options, as a substitute for taking a position in the underlying asset, to increase returns, or as part of a hedging strategy. The Portfolio may also engage in short sales, typically for hedging purposes, such as to limit exposure to a possible market decline in the value of its Portfolio securities.

Because the Portfolio invests primarily in technology companies, factors affecting those types of companies could have a significant effect on the Portfolio’s net asset value. In addition, the Portfolio’s investments in technology stocks, especially those of small, less-seasoned companies, tend to be more volatile than the overall market. The Portfolio’s investments in debt and foreign securities have credit risk and foreign risk.

The Portfolio may lend its portfolio securities to brokers, dealers and other financial institutions. In connection with such loans, the Portfolio will receive collateral from the borrower equal to at least 100% of the value of the loaned securities. Should the borrower of the securities fail financially, the Portfolio may experience delays in recovering the loaned securities or exercising its rights in the collateral.

In response to adverse market conditions or when restructuring the Portfolio, the subadviser may invest up to 100% of the Portfolio’s assets in money market instruments. Investing heavily in these securities limits the ability to achieve the investment objective, but can help to preserve the Portfolio’s assets when the markets are unstable. At times, the Portfolio may engage in short-term trading, which could produce higher transaction costs.

The Portfolio is managed by The Dreyfus Corporation. Prior to January 20, 2004, the Portfolio was managed by Alliance Capital Management, L.P.

. . . . . . .

HOW THE FUND IS MANAGED—Investment Subadvisers

The Dreyfus Corporation (Dreyfus) serves as the subadviser to the SP Technology Portfolio. Dreyfus is an indirect, wholly-owned subsidiary of Mellon Financial Corporation (Mellon). Founded in 1947, Dreyfus manages, as of September 30, 2003, approximately $168 billion in 203 mutual fund portfolios. Mellon is a global financial services company. Headquartered in Pittsburgh, Pennsylvania, Mellon is one of the world’s leading providers for corporations and institutions and affluent individuals. Dreyfus’ address is 200 Park Avenue, New York, New York 10166.

AIM VARIABLE INSURANCE FUNDS

AIM V.I. AGGRESSIVE GROWTH FUND

AIM V.I. BALANCED FUND

AIM V.I. BASIC VALUE FUND

AIM V.I. BLUE CHIP FUND

AIM V.I. CAPITAL APPRECIATION FUND

AIM V.I. CAPITAL DEVELOPMENT FUND

AIM V.I. CORE EQUITY FUND

AIM V.I. DENT DEMOGRAPHIC TRENDS FUND

AIM V.I. DIVERSIFIED INCOME FUND

AIM V.I. GLOBAL UTILITIES FUND

AIM V.I. GOVERNMENT SECURITIES FUND

AIM V.I. GROWTH FUND

AIM V.I. HIGH YIELD FUND

AIM V.I. INTERNATIONAL GROWTH FUND

AIM V.I. MID CAP CORE EQUITY FUND

AIM V.I. MONEY MARKET FUND

AIM V.I. NEW TECHNOLOGY FUND

AIM V.I. PREMIER EQUITY FUND

(Series I shares)

Supplement dated January 16, 2004

to the Prospectus dated May 1, 2003 as supplemented June 12, 2003, August 18, 2003, August 20, 2003, November 20, 2003, December 5, 2003, December 12, 2003, and December 16, 2003

This supplement provides additional information concerning the matters discussed in the supplement dated December 16, 2003 (the “Prior Supplement”).

Your Fund’s investment advisor, A I M Advisors, Inc. (“AIM”), is an indirect wholly owned subsidiary of AMVESCAP PLC (“AMVESCAP”). Another indirect wholly owned subsidiary of AMVESCAP, INVESCO Funds Group, Inc. (“INVESCO”), was, prior to November 25, 2003, the investment advisor to the INVESCO Funds.

As discussed in the Prior Supplement, on December 2, 2003 each of the Securities Exchange Commission (“SEC”) and the Office of the Attorney General of the State of New York (“NYAG”) filed civil proceedings against INVESCO and Raymond R. Cunningham, in his capacity as the chief executive officer of INVESCO, and on December 2, 2003 the State of Colorado filed civil proceedings against INVESCO. The civil proceedings allege that INVESCO failed to disclose in the INVESCO Funds’ prospectuses and to the INVESCO Funds’ independent directors that INVESCO had entered into certain arrangements permitting market timing of the INVESCO Funds.

In addition to these civil proceedings, the SEC and NYAG have issued subpoenas and requested information from AIM relating to market timing activity by certain investors in the AIM Funds.

The independent trustees of the AIM/INVESCO Funds have retained their own independent counsel to conduct an investigation on behalf of the independent trustees into the frequent trading arrangements and related issues raised by the regulators. The independent trustees have created a special committee, consisting of four independent trustees, to oversee the investigation and to formulate recommendations for further board action. As part of the investigation by the independent trustees, their independent

counsel has been reviewing the examination of INVESCO and AIM currently being conducted by management’s outside counsel.

AMVESCAP recently found, in its ongoing review, situations in which the procedures designed to guard against the potential adverse impact of frequent trading and illegal late trading through intermediaries were not completely effective. These findings were based, in part, on an extensive economic analysis by outside experts who examined the impact of these activities.

In light of these findings, AMVESCAP has agreed that any AIM or INVESCO Fund harmed by the activities of accommodated market timers will receive full restitution. In addition, AMVESCAP has retained outside counsel to undertake a comprehensive review of AIM’s and INVESCO’s policies, procedures and practices, with the objective that they rank among the most effective in the fund industry.

AMVESCAP has informed regulators of its most recent findings and is seeking to resolve both the pending enforcement actions against INVESCO and the ongoing investigations with respect to AIM.

The Prior Supplement identifies multiple lawsuits that have been filed against certain INVESCO Funds, AIM Funds, INVESCO, A I M Management Group Inc., the parent of AIM, AMVESCAP and certain related parties, primarily based upon the allegations in the complaints described above, and that have been served as of December 16, 2003. The following list identifies additional lawsuits that have been served as of January 15, 2004:

•

Steven B. Ehrlich, et al., v. INVESCO Advantage Health Sciences Fund, et al., in the United States District Court, District of Colorado (Civil Action No. 03-N-2559), filed on December 17, 2003.

•

Joseph R. Russo, Individually and On Behalf of All Others Similarly Situated, v. INVESCO Advantage Health Sciences Fund, et al., in the United States District Court, Southern District of New York (Civil Action No. 03-CV-10045), filed on December 18, 2003.

•

Miriam Calderon, Individually and On Behalf of All Others Similarly Situated, v. AMVESCAP, PLC, et al., in the United States District Court, District of Colorado (Civil Action No. 03-M-2604), filed on December 24, 2003.

•

Pat B. Gorsuch and George L. Gorsuch v. INVESCO Funds Group, Inc. and A I M Advisors, Inc., in the United States District Court, District of Colorado (Civil Action No. 03-MK-2612), filed on December 24, 2003.

The Ehrlich and Gorsuch lawsuits allege a variety of theories of recovery and seek a variety of remedies, which are generally identified in the Prior Supplement. The Calderon lawsuit alleges as a theory of recovery the violation of various provisions of the Employee Retirement Income Security Act (“ERISA”) and seeks as a remedy various corrective measures under ERISA, among other remedies identified in the Prior Supplement. The Gorsuch lawsuit seeks as a remedy that the advisory agreement with AIM be rescinded and/or declared unenforceable or void and that all advisory fees received during the past year be refunded, among other remedies identified in the Prior Supplement.

More detailed information regarding each of the cases identified above is provided in each fund’s statement of additional information. Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the funds, INVESCO, AIM, AMVESCAP and related parties in the future. Information about any similar additional lawsuits will be provided in the statement of additional information.

MFS^{^®} Variable Insurance Trust


MFS^® BOND SERIES		MFS^® MONEY MARKET SERIES
MFS^® CAPITAL OPPORTUNITIES SERIES		MFS^® NEW DISCOVERY SERIES
MFS^® EMERGING GROWTH SERIES		MFS^® RESEARCH SERIES
MFS^® GLOBAL EQUITY SERIES		MFS^® STRATEGIC INCOME SERIES
MFS^® HIGH INCOME SERIES		MFS^® TOTAL RETURN SERIES
MFS^® INVESTORS GROWTH STOCK SERIES		MFS^® UTILITIES SERIES
MFS^® INVESTORS TRUST SERIES		MFS^® VALUE SERIES
MFS^® MID CAP GROWTH SERIES

Supplement to Current Prospectus

Effective immediately, the first two paragraphs under the caption “Other Information—Pricing of Series’ Shares” in the Trust’s prospectus is replaced in their entirely by the following:

The price of each class of the series’ shares is based on its net asset value. The net asset value of each class of shares is determined once each day during which the New York Stock Exchange is open for trading as of the close of regular trading on the New York Stock Exchange (generally, 4:00 p.m., Eastern time) (referred to as the valuation time). The New York Stock Exchange is closed on most national holidays and Good Friday. To determine net asset value, each series, except for the MFS Money Market Series, values its assets at current market prices where current market prices are readily available, or at fair value as determined under the direction of the Board of Trustees when a determination is made that current market prices are not readily available. For example, in valuing securities that trade principally on foreign markets, the series use the most recent closing market prices where available from the markets on which they principally trade, unless the most recent closing market prices, in the series’ judgment, do not represent current market values of these securities. Because developments that could affect the values of foreign securities may occur between the close of the foreign market where the security is principally traded and the series’ valuation time, such closing prices may not be reflective of current market prices and current market prices may not be readily available when the series determines its net asset value, and therefore the series may adjust closing market prices of foreign securities to reflect what it believes to be the fair value of the securities as of the series’ valuation time. The MFS Money Market Series values its assets using the amortized cost method.

Effective immediately, fourth and fifth paragraphs under the caption “Other Information” in the Trust’s prospectus are replaced in their entirety by the following:

Right to Reject or Restrict Purchase and Exchange Orders. Purchases and exchanges should be made for investment purposes only. The series reserve the right to restrict, reject or cancel, without any prior notice, any purchase or exchange order, including transactions representing excessive trading and transactions accepted by an insurance company or retirement plan sponsor through which the transaction is placed. In the event that the series reject or cancel an exchange request, neither the redemption nor the purchase side of the exchange will be processed. The series reserve the right to delay for up to one business day the processing of exchange requests in the event that, in the series’ judgment, such delay would be in the series’ best interest, in which case both the redemption and purchase side of the exchange will be processed at the conclusion of the delay period.

Excessive Trading Policies. Excessive trading into and out of the series can disrupt portfolio investment strategies and increase series’ operating expenses. The series are not designed to accommodate excessive trading practices. The series and their agents reserve the right to restrict, reject or cancel purchase and exchange orders, as described above, which represent excessive trading.

Shareholders seeking to engage in excessive trading practices may deploy a variety of strategies to avoid detection, and there is no guarantee that the series or their agents will be able to identify such shareholders or curtail their trading practices. The ability of the series and their agents to detect and curtail excessive trading practices may also be limited by operational systems and technological limitations. In addition, the series receive purchase, exchange and redemption orders from insurance companies and retirement plans which maintain omnibus accounts with the series. Omnibus account arrangements are common forms of holding shares of a series, particularly among insurance companies offering variable insurance products and retirement plans. These arrangements often permit multiple

investors (e.g., contract holders and plan participants) to aggregate their respective share ownership positions and purchase, redeem and exchange series’ shares where the identity of the particular shareholder(s) is not known to a series. Therefore, the ability of the series to detect excessive trading practices with respect to shares held through omnibus arrangements is limited, and trading patterns representing a significant percentage of shareholders’ account activity may not be monitored by the series.

To the extent that the series or their agents are unable to curtail excessive trading practices in a series, these practices may interfere with the efficient management of the series’ portfolio, and may result in the series engaging in certain activities to a greater extent then it otherwise would, such as maintaining higher cash balances, using its line of credit and engaging in portfolio transactions. Increased portfolio transactions and use of the line of credit would correspondingly increase the series’ operating costs and decrease the series’ investment performance, and maintenance of a higher level of cash balances would likewise result in lower series investment performance during periods of rising markets.

For series that significantly invest in foreign securities traded on markets which may close prior to when the series determines its net asset value as of the close of regular trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) (referred to as the valuation time), excessive trading by certain shareholders may cause dilution in the value of series shares held by other shareholders. Because events may occur after the close of these foreign markets and before the series’ valuation time that influence the value of these foreign securities, investors may seek to trade series shares in an effort to benefit from their understanding of the value of these foreign securities as of the series’ valuation time (referred to as price arbitrage). The series has procedures designed to adjust closing market prices of foreign securities under certain circumstances to reflect what it believes to be the fair value of the securities as of the series’ valuation time, (referred to as fair valuation procedures), as described under “Other Information – Pricing of Series’ Shares” above. To the extent that the series does not accurately value foreign securities as of its valuation time, investors engaging in price arbitrage may cause dilution in the value of series shares held by other shareholders.

For series that significantly invest in high yield (commonly known as junk bonds) or small cap equity securities, because these securities are often infrequently traded, investors may seek to trade series shares in an effort to benefit from their understanding of the value of these securities (referred to as price arbitrage). Any such frequent trading strategies may interfere with efficient management of the series’ portfolio to a greater degree than series which invest in highly liquid securities, in part, because the series may have difficulty selling these portfolio securities at advantageous times or prices to satisfy large and/or frequent redemption requests. Any successful arbitrage may also cause dilution in the value of series shares held by other shareholders.

Effective immediately, the following is added to the prospectus:

Legal Proceedings. Massachusetts Financial Services Company (“MFS”), the investment adviser to each fund identified above (the “funds”), has reached agreement with the Securities and Exchange Commission (“SEC”), the New York Attorney General (“NYAG”) and the Bureau of Securities Regulation of the State of New Hampshire (“NH”) to settle administrative proceedings alleging false and misleading information in certain MFS fund prospectuses regarding market timing and related matters. These regulators alleged that prospectus language for certain MFS funds was false and misleading because, although the prospectuses for those funds in the regulators’ view indicated that the funds prohibited market timing, MFS did not limit trading activity in 11 domestic large cap stock, high grade bond and money market funds. MFS’ former Chief Executive Officer, John W. Ballen, and former President, Kevin R. Parke, have also reached agreement with the SEC (Messrs. Ballen and Parke resigned their director and officer positions with MFS on February 13, 2004). Under the terms of the settlements, MFS and the executives neither admit nor deny wrongdoing.

Under the terms of the settlements, a $225 million pool will be established for distribution to shareholders in certain of the MFS funds offered to retail investors (“Retail Funds”), which will be funded by MFS and of which $50 million is characterized as a penalty. This pool will be distributed in accordance with a methodology developed by an independent distribution consultant with consultation with MFS and the Boards of Trustees of the Retail Funds, and acceptable to the SEC. MFS has further agreed with the NYAG to reduce its management fees in the aggregate amount of approximately $25 million annually over the next five years, and not to increase certain management fees during this period. MFS will also pay an administrative fine to NH in the amount of $1 million, which will be used for investor education purposes (NH will retain $250,000 and $750,000 will be contributed to the North American Securities Administrators Association’s Investor Protection Trust).

In addition, under the terms of the settlement, MFS will adopt certain governance changes, which include, among others:

•

formation of a Code of Ethics Oversight Committee, comprised of senior executives of MFS’ operating businesses, to oversee all matters relating to issues arising under MFS’ Code of Ethics;

•

establishment of an Internal Compliance Controls Committee, chaired by MFS’ Chief Compliance Officer and comprised of senior executives of MFS’ operating businesses, to review compliance issues as they may arise from time to time, endeavor to develop solutions to those issues, and oversee implementation of those solutions;

•

establishment of a company ombudsman to whom MFS employees may convey concerns about MFS business matters that they believe involve matters of ethics or questionable practices;

•

establishment of a full-time senior-level position reporting to MFS’ Chief Compliance Officer whose responsibilities include compliance matters related to conflicts of interest; this officer or another designated compliance officer will implement and oversee the funds’ excessive trading policies and compliance procedures;

•

engagement of an Independent Compliance Consultant to conduct a comprehensive review of MFS supervisory, compliance, and other policies and procedures designed to prevent and detect conflicts of interest, breaches of fiduciary duty, breaches of the MFS Code of Ethics and federal securities law violations by MFS and its employees; and

•

commencing in 2006, and at least once every other year thereafter, MFS shall undergo a compliance review by an independent third party.

In addition, under the terms of the settlement, MFS has undertaken to use its best efforts to cause the Retail Funds to operate in accordance with the following governance policies and practices:

•

at least 75% of the Retail Funds’ Boards of Trustees will be independent of MFS and will not have been directors, officers or employees of MFS at any point during the preceding 10 years (a standard to which the Retail Funds’ Boards currently adhere);

•

the chair of the Retail Funds’ Boards of Trustees will be independent of MFS and will not have been a director, officer or employee of MFS at any point during the preceding 10 years (a standard to which the Retail Funds’ Boards currently adhere);

•

all action taken by the Retail Funds’ Boards of Trustees or a committee thereof will be approved by a majority of the independent trustees of the Boards or committee, respectively;

•

commencing in 2005 and not less than every fifth calendar year thereafter, the Retail Funds will hold shareholder meetings at which the Boards of Trustees will be elected; and

•

the Retail Funds will designate an independent compliance officer reporting to the Boards of Trustees responsible for assisting the Boards in monitoring compliance by MFS with the federal securities laws, its fiduciary duties to fund shareholders and its Code of Ethics in all matters relevant to the operations of the funds.

Under the terms of the NYAG settlement, MFS has undertaken, on behalf of the funds, that:

•

the funds will retain a senior officer responsible for assisting in the review of fee arrangements and administering the funds’ compliance policies and procedures, and the Board of Trustees of the funds has determined that MFS shall reimburse the funds for the expense of this senior officer; and

•

certain statements sent by MFS to fund shareholders will disclose fees and costs in actual dollar amounts charged to each investor on his or her actual investment based upon the investor’s most recent quarterly closing balance and on a hypothetical $10,000 investment held for ten years.

Messrs. Ballen and Parke have agreed to suspensions from association with any investment adviser or registered investment company for periods of 9 months and 6 months, respectively. Upon completion of these suspensions, for periods of 27 months (Mr. Ballen) and 30 months (Mr. Parke), Messrs. Ballen and Parke have agreed not to serve as an employee, officer or trustee of any registered investment company; not to serve as chairman, director or as an officer of any investment adviser; and to otherwise perform only limited functions for an investment adviser, which may include strategic planning and analysis, portfolio management and non-mutual fund marketing. Messrs. Ballen and Parke will pay approximately $315,000 each to the SEC, $250,000 of which is characterized as a penalty. In addition, Messrs. Ballen and Parke resigned as trustees of the funds’ Boards of Trustees, and Mr. Ballen resigned as the funds’ President, effective February 6, 2004.

Since December 2003, MFS, Sun Life Financial Inc., various MFS funds, the Trustees of these MFS funds, and certain officers of MFS have been named as defendants in multiple lawsuits filed in federal and state courts. The lawsuits variously have been commenced as class actions or individual actions on behalf of investors who purchased, held or redeemed shares of the funds during specified periods, as class actions on behalf of participants in certain retirement plan accounts, or as derivative actions on behalf of the MFS funds. The lawsuits generally allege that some or all of the defendants permitted or acquiesced in market timing and/or late trading in some of the MFS funds, inadequately disclosed MFS’ internal policies concerning market timing and such matters, and received excessive compensation as fiduciaries to the MFS funds. The actions assert that some or all of the defendants violated the federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act of 1940, the Employee Retirement Income Security Act of 1974, as well as fiduciary duties and other violations of common law. The lawsuits seek unspecified compensatory damages. Insofar as any of the actions is appropriately brought derivatively on behalf of any of the MFS funds, any recovery will inure to the benefit of the funds. The defendants are reviewing the allegations of the multiple complaints and will respond appropriately. Additional lawsuits based on similar allegations may be filed in the future.

Any potential resolution of these matters may include, but not be limited to, judgments or settlements for damages against MFS, the MFS funds, or any other named defendant. As noted above, as part of the regulatory settlements, MFS will establish a restitution pool in the amount of $225 million to compensate certain shareholders of the Retail Funds for damages that they allegedly sustained as a result of market timing or late trading in certain of the Funds. It is not clear whether the restitution pool will be sufficient to compensate shareholders for all of the damage they allegedly sustained, whether certain shareholders or putative class members may have additional claims to compensation, or whether the damages that may be awarded in any of the actions will exceed the amounts available in the restitution pool. In the event the MFS funds incur any losses, costs or expenses in connection with such lawsuits, the Boards of Trustees of the affected funds may pursue claims on behalf of such funds against any party that may have liability to the funds in respect thereof.

In November 2003, the SEC and Morgan Stanley DW, Inc. (Morgan Stanley) settled an enforcement action against Morgan Stanley relating to the undisclosed receipt of fees from certain mutual fund companies in return for preferred marketing of their funds. MFS was one of the 14 fund companies reported to be on Morgan Stanley’s preferred list. As a result, MFS has been under investigation by the SEC relating to its directed brokerage and revenue-sharing arrangements with various distributors of its products, including Morgan Stanley. MFS is cooperating with the SEC’s investigation, which is ongoing. The outcome of this investigation is not yet determinable and may result in sanctions, compensation payments or other financial penalties.

Review of these matters by the independent Trustees of the MFS funds and their counsel is continuing. There can be no assurance that these regulatory actions and lawsuits, or the adverse publicity associated with these developments will not result in increased fund redemptions, reduced sales of fund shares, or other adverse consequences to the funds.

The date of this supplement is March 1, 2004.

T. Rowe Price Institutional International Funds, Inc.

T. Rowe Price Institutional Emerging Markets Equity Fund

T. Rowe Price Institutional Foreign Equity Fund

T. Rowe Price International Funds, Inc.

T. Rowe Price Emerging Europe & Mediterranean Fund

T. Rowe Price Emerging Markets Stock Fund

T. Rowe Price European Stock Fund

T. Rowe Price Global Stock Fund

T. Rowe Price International Discovery Fund

T. Rowe Price International Growth & Income Fund

T. Rowe Price International Growth & Income Fund–Advisor Class

T. Rowe Price International Growth & Income Fund–R Class

T. Rowe Price International Stock Fund

T. Rowe Price International Stock Fund–Advisor Class

T. Rowe Price International Stock Fund–R Class

T. Rowe Price Japan Fund

T. Rowe Price Latin America Fund

T. Rowe Price New Asia Fund

Supplement to prospectuses dated March 1, 2003

T. Rowe Price International Series, Inc.

T. Rowe Price International Stock Portfolio

T. Rowe Price Spectrum Fund, Inc.

Spectrum International Fund

Supplement to prospectuses dated May 1, 2003

The subsequent notice updates the following prospectuses dated March 1, 2003: International Funds – Equity Portfolios,

International Growth & Income Fund – Advisor Class, International Growth & Income Fund – R Class, International Stock Fund, International Stock Fund – Advisor Class, International Stock Fund – R Class, Institutional Emerging Markets Equity Fund, and Institutional Foreign Equity Fund. It also updates the International Stock Portfolio and Spectrum Funds’ prospectuses dated May 1, 2003 and the T. Rowe Price Funds prospectus dated October 1, 2003.

Effective March 1, 2004, David J.L. Warren will replace John R. Ford on the Investment Advisory Groups for the following funds: Emerging Europe & Mediterranean, Emerging Markets Stock, European Stock, Institutional Emerging Markets Equity, International Discovery, International Growth & Income, Latin America, and New Asia. Mr. Warren will also replace John R. Ford as the chairman of the Spectrum International Fund’s Investment Advisory Committee. Mr. Ford will no longer be a member of the Investment Advisory Groups for the Institutional Foreign Equity, International Stock, and Japan Funds, as well as the International Stock Portfolio. Effective February 1, 2004, Gonzalo Pángaro will replace Benedict R.F. Thomas on the Investment Advisory Groups for the Emerging Markets Stock and Latin America Funds. Dean Tenerelli will replace Mr. Ford on the Investment Advisory Group for the Global Stock Fund.

Gonzalo Pángaro joined T. Rowe Price International in 1998 and has 11 years of investment experience. David J.L. Warren joined T. Rowe Price International in 1983 and has 23 years of experience in equity research, fixed-income research, and portfolio management.

The date of the above supplement is January 20, 2004.


Variable Life Insurance	Annual Report	December 31, 2003

Table of Contents


Letter to Contract Owners

¨	THE PRUDENTIAL SERIES FUND, INC. PORTFOLIOS


Conservative Balanced Portfolio		SP Conservative Asset Allocation Portfolio
Diversified Bond Portfolio		SP Davis Value Portfolio
Equity Portfolio		SP Deutsche International Equity Portfolio
Flexible Managed Portfolio		SP Growth Asset Allocation Portfolio
Global Portfolio		SP INVESCO Small Company Growth Portfolio
Government Income Portfolio		SP Jennison International Growth Portfolio
High Yield Bond Portfolio		SP Large Cap Value Portfolio
Jennison Portfolio		SP MFS Capital Opportunities Portfolio
Money Market Portfolio		SP Mid Cap Growth Portfolio
Natural Resources Portfolio		SP PIMCO High Yield Portfolio
Small Capitalization Stock Portfolio		SP PIMCO Total Return Portfolio
SP Aggressive Growth Asset Allocation Portfolio		SP Prudential U.S. Emerging Growth Portfolio
SP AIM Aggressive Growth Portfolio		SP Small/Mid Cap Value Portfolio
SP AIM Core Equity Portfolio		SP Strategic Partners Focused Growth Portfolio
SP Alliance Large Cap Growth Portfolio		Stock Index Portfolio
SP Alliance Technology Portfolio		Value Portfolio
SP Balanced Asset Allocation Portfolio		Zero Coupon Bond Portfolio 2005

¨	AIM VARIABLE INSURANCE FUNDS, INC.

AIM V.I. Premier Equity Fund

¨	AMERICAN CENTURY VARIABLE PORTFOLIO

American Century VP Value Fund

¨	FRANKLIN^® TEMPLETON^® VARIABLE INSURANCE PRODUCTS TRUST

Franklin^® Small Cap Fund, Class II

¨	JANUS ASPEN SERIES

Janus Aspen Growth Portfolio, Institutional Shares

¨	MFS^® VARIABLE INSURANCE TRUST^SM

MFS^® Emerging Growth Series

¨	T. ROWE PRICE INTERNATIONAL SERIES, INC.

T. Rowe Price International Stock Portfolio

This report may include financial information pertaining to certain portfolios that are not available through the variable life insurance policy that you have chosen. Please refer to your variable life insurance prospectus to determine which portfolios are available to you.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Letter to Contract Owners

LOGO

n	DEAR CONTRACT OWNER

The past year presented a welcome change for equity investors. Several years of corporate belt-tightening paid off in a swift upswing in profits when economic growth picked up. Stock prices rose in anticipation of further profitability improvements in 2004. The gradual economic acceleration raised no fears of inflation or industrial bottlenecks, so interest rates stayed low. As a result, bondholders also had a good year.

Despite this good news, the industry faces a number of challenges. Market timing and late trading have been the subject of attention by the regulators and investment management industry. Please be assured that Prudential Financial takes these issues very seriously. We are committed to protecting the interests of our contract holders.

In general, investors should expect both good and bad markets within any extended time span. Good financial planning takes this into account by diversifying your portfolio with an asset allocation strategy that is appropriate for your stage in life and your tolerance for the possibility of loss.

A financial professional can help you create a complete picture of the potential demands on your resources. Financial professionals are familiar with the long-term returns and historical volatility of various asset classes. Together, you and your financial professional can plan an investment program that takes into account your reasons for investing, the time you have to reach your goals, and the amount of risk you feel comfortable assuming.

Thank you for your confidence in our products. We look forward to continuing to serve your investment needs.


Sincerely,


David R. Odenath, Jr.
Chairman,
The Prudential Series Fund, Inc.								January 30, 2004


The Prudential Series Fund, Inc.	Annual Report	December 31, 2003

Conservative Balanced Portfolio

¨	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

We invest in a mix of equity and equity-related securities, debt obligations, and money-market instruments. We vary the percentage of fixed income assets depending on our expectations regarding the different markets. Stock holdings are indexed to the S&P 500 Index.

¨	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Conservative Balanced Portfolio	9.13	%	18.77	%	1.94	%	2.38	%	6.43	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-0.57	%	11.06	%
Conservative Balanced Custom Blended Index ²	7.55	%	15.65	%	1.57	%	3.07	%	9.06	%
Lipper (VIP) Balanced Funds Average ²	9.28	%	18.97	%	1.34	%	2.96	%	8.23	%

Conservative Balanced Portfolio inception date: 5/13/1983

LOGO

The Conservative Balanced Portfolio returned 18.77% in 2003, while the S&P 500 Index rose 28.67%, the Conservative Balanced Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s neutral allocation) rose 15.65%, and the Lipper (VIP) Balanced Funds Average was 18.97%.

¨	PERFORMANCE REVIEW

Asset allocation had a significant effect on performance in 2003, as it did in 2002. In 2003, however, the advantage reversed, and stocks outperformed bonds. Normally, the Portfolio holds approximately 50% of its assets in stocks, while most of the remainder is in bonds. This is a lower equity allocation than that of most balanced funds, which normally hold about 60% in equities. Consequently, relative to competitors, the Portfolio was hurt by having a more conservative targeted equity exposure. Fortunately, our favorable view of stocks led us to overweight stocks relative to our normal allocation, and we outperformed our 50% stock, 40% bond, and 10% cash benchmark.

The Portfolio’s bond holdings outperformed the Lehman Brothers Aggregate Index, which represents 40% of the Conservative Balanced Custom Blended Index. As the creditworthiness of companies in industries that had been under stress improved, the value of these bonds strengthened. The Portfolio’s overweight of corporate bonds and its modest exposure to high yield bonds (“junk bonds”) helped drive its return above its benchmark. Moreover, its emphasis on specified pools of mortgage backed securities partially shielded its holdings in the mortgage sector from the wave of refinancing. Selection of individual issues in both the corporate and mortgage markets also contributed to the Portfolio’s outperformance.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Diversified Bond Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

An economic recovery in the United States, low interest rates, and an improvement in credit quality resulted in outperformance by the investment grade and high yield corporate bond sectors in 2003. We believe better economic conditions, improving credit quality, and a declining supply of new corporate bonds could support these sectors in 2004.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Diversified Bond Portfolio	1.42	%	7.49	%	7.18	%	6.04	%	6.64	%
Lehman Brothers Aggregate Bond Index²	0.17	%	4.10	%	7.57	%	6.62	%	6.95	%
Lipper (VIP) Corporate Debt Funds BBB-Rated Funds Average²	1.29	%	7.78	%	7.89	%	6.17	%	6.60	%

Diversified Bond Portfolio inception date: 5/13/1983.

LOGO

The Diversified Bond Portfolio returned 7.49% in 2003, while the Lehman Brothers Aggregate Bond Index rose 4.10% and the Lipper (VIP) Corporate Debt Funds BBB-Rated Funds Average was 7.78%. The Portfolio benefited from our decision to underweight U.S. Treasuries relative to the Index and to focus on investment grade corporate bonds, emerging-market bonds, and high yield bonds, which are called “junk bonds” because of their poor credit ratings.

n	PERFORMANCE REVIEW

U.S. investment grade corporate bonds turned in a solid performance in 2003. These bonds rallied in the first half of the year as companies took advantage of low interest rates by issuing new bonds to replace higher coupon debt, enabling companies to cut their interest cost. In the second half of the year, investment grade corporate bonds held up better than Treasuries and other high grade bonds, which sold off amid concern that the strong economic recovery would eventually lead to rising inflation and higher interest rates. Investment grade corporate bonds performed well because the economic recovery helped corporate earnings improve. While mortgage backed securities were hurt by prepayments, the Portfolio benefited from its exposure to securities backed by “specified pools” that experienced slower than usual prepayments.

Among investment grade corporate bonds, riskier debt issues such as those in the BBB ratings category outperformed higher quality bonds. The rally occurred as investors sought bonds that provided higher yields in the low-interest-rate enviroment Indeed, the search for attractive yields in 2003 helped generate strong returns for emerging-market bonds and high yield bonds as well. The Portfolio benefited from our decision to underweight Treasuries relative to the Index and to emphasize investment grade corporate bonds, high yield bonds, and emerging-market bonds, which together accounted for more than 50% of its investments. These three sectors significantly outperformed Treasuries in 2003.

From the perspective of industry sectors, the Portfolio had considerable exposure to bonds of utilities, telecommunications firms, and cable/media companies such as Centerpoint, Sprint, AT&T Wireless, and Time Warner. These sectors generated solid returns in 2003 as their bonds recovered from a sharp sell-off in 2002. The Portfolio also benefited from its exposure to secured bonds of airlines such as Continental Airlines as the economic recovery improved the business climate for this industry. Similarly, exposure to bonds of General Motors and other automobile companies was another positive factor for the Portfolio as the automobile industry’s earnings picture improved.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and ecconomic change.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Equity Portfolio

n	MANAGED BY: GE ASSET MANAGEMENT; JENNISON ASSOCIATES LLC; and SALOMON BROTHERS ASSET MANAGEMENT

The Portfolio’s holdings are managed by several investment advisers independent of one another. Jennison Associates LLC manages about half of the assets. GE Asset Management is responsible for about 25%. Salomon Brothers Asset Management invests about 25%. This strategy provides a level of diversification that may reduce the volatility of the Portfolio’s return, and it provides the advantage of active management by carefully selected teams of advisers.

n	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year/ Since Inception
Equity Portfolio: Class I	17.42	%	31.65	%	-3.16	%	1.08	%	8.68	%
Equity Portfolio: Class II	17.20	%	31.11	%	-3.56	%	N/A		-1.86	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-0.57	%	11.06	%
Russell 1000 Index²	15.63	%	29.89	%	-3.78	%	-0.13	%	11.00	%
Lipper (VIP) Large-Cap Core Funds Average²	13.97	%	26.43	%	-6.02	%	-1.22	%	8.68	%

Equity Portfolio Class I inception date: 5/13/1983. Equity Portfolio Class II inception date: 5/4/1999.

LOGO

The Equity Portfolio (Class I) return 31.65% in 2003, while the S&P 500 Index rose 28.67% and the Lipper (VIP) Large-Cap Core Funds Average was 26.43%.

n	PERFORMANCE REVIEW

Jennison Associates outperformed its benchmark in part because of its emphasis on mining companies. Jennison expected them to benefit from rising prices for basic materials. Holdings in this category that performed well included Freeport McMoRan Copper & Gold and Companhia Vale do Rio Doce. A focus on technology, particularly semiconductor stocks, also provided a strong contribution to return once investors overcame their cautious sentiment. Jennison’s prudent stock selection and timely purchases during the earlier market downturn had set the stage for these gains. An emphasis on oil energy equipment and services stocks detracted from relative performance, despite generally favorable supply and demand. However, given the favorable fundamental picture, Jennison believes their energy holdings should be relative outperformers going forward.

Salomon Brothers Asset Management also beat its benchmark. Salomon emphasized companies, such as retailers and heavy truck manufacturers, that it expected would benefit early in an economic recovery. Selection in the consumer cyclicals sector was generally strong, with Best Buy, Home Depot, and Costco as standout performers. Substantial positions in generic drug and biotechnology stocks and an underweight in large pharmaceutical companies enhanced healthcare return. Industrials and materials performances were led by positions in Alcoa and Tyco International.

GE Asset Management underperformed its benchmark. GE emphasized larger-capitalization companies of above-average quality. However, smaller-capitalization and generally more speculative companies had the highest returns in 2003. This was most evident in the information technology sector where GE was unable to keep pace with the 46% sector return of the index despite some strong technology selections. Healthcare performance was constrained by an emphasis on pharmaceutical companies, which rose at a lesser rate than the biotechnology and healthcare equipment subsectors.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

^**

The graph is based on the performance of Class I shares. Performance of Class II shares will be lower due to differences in the fee structure. Class II shares have associated 12b-1 and administrative fees at an annual rate of 0.25% and 0.15% respectively of the average daily net assets of the Class II shares.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Flexible Managed Portfolio

¨	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

We invest in a mix of equity and equity-related securities, debt obligations, and money-market instruments. We vary the percentage of Portfolio assets in each category depending on our expectations regarding the different markets.

¨	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month	1-Year	3-Year	5-Year	10-Year
Flexible Managed Portfolio	11.77%	23.76%	0.61%	1.59%	6.75%
S&P 500 Index²	15.14%	28.67%	-4.05%	-0.57%	11.06%
Flexible Managed Custom Blended Index²	8.80%	18.53%	0.83%	2.52%	9.62%
Lipper (VIP) Flexible Portfolio Funds Average²	9.40%	18.59%	0.53%	3.04%	8.44%

Flexible Managed Portfolio inception date: 5/13/1983

LOGO

The Flexible Managed Portfolio returned 23.76% in 2003, the Flexible Managed Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s neutral allocation) rose 18.53%, while the S&P 500 Index rose 28.67%, and the Lipper (VIP) Flexible Portfolio Funds Average was 18.59%.

¨	PERFORMANCE REVIEW

Asset allocation had a significant effect on performance in 2003, as it did in 2002. In 2003, however, the advantage reversed and stocks outperformed bonds. Our favorable view of stocks had us overweighting stocks, relative to our neutral allocation of 60% stocks. This overweighting made a significant contribution to the Portfolio’s outperformance of the Flexible Managed Custom Blended Index.

Our stock holdings outperformed the S&P 500 Index by about 2.5 percentage points. Advantageous selections among stocks of companies whose earnings were growing rapidly were largely responsible. More specifically, overweightings in Nextel, Yahoo!, Coach, Intel, and Genentech, all of which were up more than 100% for the year, made significant contributions to performance relative to the S&P 500 Index. The stock portfolio also benefited from having greater representation in smaller-capitalization stocks than the S&P 500 Index, as small-capitalization stocks significantly outperformed larger stocks over the year.

The Portfolio’s bond holdings outperformed the Lehman Brothers Aggregate Index. As the creditworthiness of companies in industries that had been under stress improved, the value of these bonds strengthened. The Portfolio’s overweight of corporate bonds and its modest exposure to high yield bonds (“junk bonds”) helped drive its return above its benchmark.

Moreover, its emphasis on specified pools of mortgage backed securities partially shielded its holdings in the mortgage sector from the wave of refinancing. Selection of individual issues in both the corporate and mortgage markets also contributed to the Portfolio’s outperformance.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Global Portfolio

¨	MANAGED BY: JENNISON ASSOCIATES LLC

We expect world economies will likely expand again in 2004. Although we appear to be only in the early stages of a rebound in global business spending, U.S. and U.K. consumers have been responding to the stimulative effects of lower interest rates for an unusually long time. This suggests that gross domestic product (GDP) gains in these two important countries will be relatively modest for this point in the business cycle. We think that a slower growth environment will shift investor attention away from the highly-leveraged cyclical firms that were the stars of 2003. We expect the markets to refocus on well-managed companies like those we hold whose franchises permit them to steadily gain market share from weaker rivals.

¨	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Global Portfolio	16.82	%	34.07	%	-6.15	%	0.18	%	5.94	%
MSCI World Index²	19.79	%	33.11	%	-3.92	%	-0.77	%	7.14	%
Upper (VIP) Global Funds Average²	20.50	%	33.65	%	-2.39	%	3.33	%	7.50	%

Global Portfolio inception date: 9/19/1988

LOGO

The Global Portfolio returned 34.07% in 2003, while the MSCI World Index rose 33.11% and the Lipper (VIP) Global Funds Average was 33.65%.

¨	PERFORMANCE REVIEW

2003 was a very strong year for world equity markets. The Global Portfolio produced strong gains over the period, outpacing its Lipper peer group average and the MSCI World Index. The turning point for financial markets last year was the war in Iraq. In the months before its onset, global stock markets fell, the dollar declined, oil prices rose and credit conditions remained very tight. The equity sell-off was particularly severe in Europe. Investors there began to worry about the damage the market decline itself was doing to prominent local financial services companies and about possible underfunding of corporate pension plans. They expressed their fears by selling, thereby creating greater financial stresses and generating new waves of selling. The war broke this downward spiral. The U.S. market reversed direction and began to move up shortly in advance of the war beginning. As battlefield reports indicated the conflict was being won much more quickly and easily than anyone had predicted, the rest of the world joined what turned into a lengthy global stock market rally.

The Portfolio made strong gains in three sectors: financials, healthcare and industrials. We had particularly good results from European financials like Anglo-Irish Bank and Banco Popular Español, both of which focus on smaller banking customers, and from Deutsche Boerse, an innovative operator of electronic securities trading platforms.

Although we had good gains from our biotechnology holdings, our best relative performance came from more traditional pharmaceutical firms, like AstraZeneca and Allergan. In the industrial sector, Chinese port operators Cosco Pacific and China Merchants, Japanese distribution firm Mitsubishi Corp and the U.K.-based logistics company Exel, were all standouts. Our disappointments came mostly from a small number of troubled companies in the consumer area, including Sony, the Scandinavian brewer Carlsberg, and discount retailer Kohl’s, all of which have been eliminated from the Portfolio.

Foreign investments are subject to the risks of currency fluctuation and the impact of social, political, and economic change, which may result in greater share price volatility.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Government Income Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

Conditions in the U.S. government securities market could be volatile in 2004 if long-term interest rates get caught in a tug-of-war. Cyclical factors driving the U.S. economic recovery could continue to put upward pressure on long-term rates, which would push bond prices lower. However, a trend toward tame inflation could cap any increase in long-term rates, allowing them to remain at lower levels than is typically seen during an economic recovery. This would provide some support to bond prices.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Government Income Portfolio	-0.58	%	2.46	%	7.45	%	6.36	%	6.55	%
Lehman Brothers Govt Bond Index²	-1.23	%	2.36	%	6.96	%	6.26	%	6.72	%
Lipper(VIP) General U.S. Govt Funds Average²	-0.79	%	2.32	%	6.64	%	5.65	%	6.20	%

Government Income Portfolio inception date: 5/1/1989.

LOGO

The Government Income Portfolio returned 2.46% in 2003, while the Lehman Brothers Government Bond Index (the Index) rose 2.36% and the Lipper (VIP) General U.S. Government Funds Average was 2.32%.

n	PERFORMANCE REVIEW

U.S. investment grade bonds were volatile in 2003. Bond prices rallied strongly during the first half of the year then declined sharply for much of the second half. Bonds gained as the Federal Reserve (the Fed) was expected to aggressively cut short-term interest rates with a goal of encouraging growth in the U.S. economy, which was hurt by concerns about a war in Iraq. There was also speculation in the financial markets that the Fed might resort to buying long-term bonds to exert downward pressure on rates. However, such extraordinary measures proved to be unnecessary. The economy began to grow rapidly in the summer of 2003.

Fed policy makers only cut the interbank overnight lending rate by a quarter of a percentage point to 1% in late June. Disappointment over this modest change in monetary policy and signs of robust economic growth prompted a dramatic sell-off in investment grade bonds, particularly U.S. Treasury securities, during the summer of 2003.

We believe the Portfolio modestly outperformed the Index and its peer group due to a combination of its core holdings and incremental sector, yield curve, and duration overweights relative to the Index. The Portfolio’s core holdings included federal agency securities that modestly outperformed Treasuries in 2003, despite accounting concerns.

Its core holdings also included asset backed securities and commercial mortgage backed securities, both of which outperformed Treasuries in 2003 as investors sought bonds with higher yields in a low-interest-rate environment. The Portfolio’s incremental overweights that added to its performance included holdings of Treasury inflation-protected securities (TIPS) and Treasuries maturing in 20 to 25 years.

The guarantee on U.S. government securities applies only to the underlying securities of the Portfolio, and not to the value of the Portfolio’s shares.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For	a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

High Yield Bond Portfolio

¨	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

High yield bonds, commonly called “junk bonds” because they are rated below investment grade, rallied strongly in 2003. Therefore we believe that high yield bonds are nearly fairly valued in light of the current economic environment in the United States. This leaves little potential for further declines in the difference between yields on junk bonds and comparable U.S. Treasury securities. Consequently, we believe that painstaking research will be crucial to identifying investment opportunities in the high yield market that offer an attractive balance between risk and reward in 2004.

¨	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month	1-Year	3-Year	5-Year	10-Year
High Yield Bond Portfolio	8.48%	25.04%	8.11%	4.01%	5.59%
Lehman Brothers Corporate High Yield Bond Index²	8.85%	28.97%	10.21%	5.23%	6.89%
Lipper (VIP) High Current Yield Funds Average²	8.41%	23.87%	7.53%	3.54%	5.65%

High Yield Bond Portfolio inception date: 2/23/1987.

LOGO

The High Yield Bond Portfolio returned 25.04% in 2003, while the Lehman Brothers Corporate High Yield Bond Index rose 28.97% and the Lipper (VIP) High Current Yield Funds Average was 23.87%. The Portfolio benefited from its exposure to bonds of electric utilities and cable companies, but its more conservative risk profile than the Index hurt the Portfolio’s performance relative to the Index.

¨	PERFORMANCE REVIEW

U.S. high yield bonds turned in an outstanding performance in 2003. In the first half of the year, high yield bonds gained in value as companies took advantage of the low-interest-rate environment by issuing new bonds and using the proceeds to pay off bank loans and to replace higher rate bonds. As a result, companies cut their interest cost, and in some cases, avoided potential bankruptcies. In the second half of the year, high yield bonds rallied as a stronger-than-expected economic recovery helped to boost earnings of companies that issue junk bonds. There was strong demand for high yield bonds throughout the year because they provided more attractive yields than Treasuries and other high-quality bonds.

In 2003 riskier high yield bonds such as those rated CCC and below performed better than bonds rated BB and single-B, the two highest ratings categories in the high yield market. The Portfolio had a smaller exposure to top-performing CCC-rated bonds than the Index, which detracted from the Portfolio’s relative performance in 2003.

However, from the perspective of industry sectors, the Portfolio benefited from what we believed to be timely investments in airline and cable company bonds, including those of Continental Airlines, Delta Airlines, Cablevision, and UPC, a European cable firm. The Portfolio also held bonds of telecommunications companies that performed well, but overall, its underweight exposure to this sector detracted from its performance as telecommunications was among the top-performing high yield sectors in 2003.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change. High yield bonds, also known as “junk bonds,” are subject to greater credit and market liquidity risks, which may result in greater share price volatility.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Jennison Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC

The Portfolio’s gains for the full-year period were supported by accelerating profits alongside surging economic activity in the second half of the year. While we believe that the rapid pace of growth in the past two quarters will not likely be repeated, the fundamental drivers for healthy economic activity should remain in place reinforcing our positive economic outlook and optimistic perspective

for equities in 2004. We believe that acceleration in cash flow, revenue, and earnings growth is underway. Just as the market underestimated the impact of declining revenues and its impact on profitability two years ago, we are probably entering a period where profit estimates will be revised upward to reflect stronger revenue growth.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		Since Inception
Jennison Portfolio: Class I	16.01	%	30.25	%	-9.75	%	-2.89	%	9.76	%
Jennison Portfolio: Class II	15.75	%	29.61	%	-10.12	%	N/A		-13.65	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	0.57	%	11.13	%
Russell 1000 Growth Index²	14.73	%	29.75	%	-9.36	%	-5.11	%	8.94	%
Lipper (VIP) Large-Cap Growth Funds Average²	13.63	%	28.37	%	-10.44	%	-3.22	%	8.35	%

Jennison Portfolio Class I inception date: 4/25/1995. Jennison Portfolio Class II inception date: 2/10/2000.

LOGO

The Jennison Portfolio (Class I) returned 30.25% in 2003, while the Russell 1000 Growth Index rose 29.75% and the Lipper (VIP) Large-Cap Growth Funds Average was 28.37%.

n	PERFORMANCE REVIEW

Information technology stocks contributed significantly to the Portfolio’s return, led by our emphasis in semiconductor and semiconductor equipment stocks, including Intel, Texas Instruments, and KLA-Tencor. Among our communications equipment holdings, Cisco was a notable contributor. So far, earnings growth for many of our holdings in this area is primarily a result of cost cutting. We believe that as revenue growth accelerates, these companies should demonstrate impressive operating leverage leading to upward earnings revisions and positive earnings surprises. Healthcare stocks were among the largest contributors to the Portfolio’s absolute returns. Biotechnology holdings such as Amgen and Genentech advanced on the back of a stream of encouraging product developments. We favor Amgen and expect strong demand for the company’s existing multi-billion dollar product portfolio, which should generate robust earnings and sales growth in markets that are largely under penetrated. Genentech has an impressive pipeline of potential drugs, some of which have passed important regulatory milestones. We believe the company’s exceptional cancer franchise and continued success of its current product line should generate earnings and revenue growth acceleration. Within pharmaceuticals AstraZeneca and Teva Pharmaceuticals also helped returns.

The Portfolio’s financial holdings performed well, led by capital markets stocks such as Merrill Lynch. American Express also moved higher alongside an improving outlook for corporate spending and travel as well as favorable developments in the government’s Visa/Mastercard antitrust case. Within the consumer-related areas of the Portfolio, Starbucks and Tiffany & Co. advanced. Holdings such as Harley-Davidson and Kohl’s offset these returns. We have been disappointed with Kohl’s erratic sales growth, poor inventory control and store-level execution. We also anticipate difficult same-store sales comparables over the next several quarters. These concerns led us to eliminate the entire position.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

^**

The graph is based on the performance of Class I shares. Performance of Class II shares will be lower due to differences in the fee structure Class II shares have associated 12b-1 and administrative fees at an annual rate of 0.25% and 0.15% respectively of the average daily net assets of the Class II shares.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Money Market Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

Should low inflation continue despite solid economic growth in the United States during the first half of 2004, we believe the Federal Reserve (the Fed) may be reluctant to increase short-term interest rates. However, with the target for the interbank overnight lending rate at 1%, we believe an increase in short-term rates is inevitable at some point. That said, any adjustment to monetary policy will likely occur gradually.

n	PERFORMANCE SUMMARY—MONEY MARKET PORTFOLIO’s 7-DAY CURRENT NET YIELD: 0.69%


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Money Market Portfolio	0.37	%	0.84	%	2.13	%	3.50	%	4.34	%
Lipper (VIP) Money Market Funds Average²	0.27	%	0.64	%	1.90	%	3.28	%	4.12	%

Money Market inception date: 5/13/1983.

LOGO

On December 31, 2003, the Money Market Portfolio’s 7-day current net yield was 0.69%, down from 0.78% on June 30, 2003. The yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. The Portfolio returned 0.84% in 2003, while the Lipper (VIP) Money Market Funds Average was 0.64%.

n	PERFORMANCE REVIEW

Money market yields were volatile at low levels in 2003 amid changing economic conditions in the United States, an uncertain outlook for monetary policy and geopolitical risks. In this challenging investment environment, the Portfolio held a diversified mix of high-quality, short-term debt issues of federal agencies, banks, and corporations that spanned the full range of money market maturities.

By altering this mix of debt securities, we positioned the Porfolio’s weighted average maturity (WAM) lomger than its competitive average throughout the year. (WAM, which is expressed in days, takes into account the quantity and maturity of each security held by the Portfolio. It indicates the Portfolio’s sensitivity to changes in interest rates.) We often maintained the longer-than-average WAM by investing in debt issues scheduled to mature in one year. Some of these debt securities could be retired early (or called) in three or six months. These callable securities provided relatively attractive yields to compensate investors for this early maturity option.

There were times when we chose not to focus on the one-year maturity category. For example, yields fell sharply in the spring of 2003 amid speculation that the Fed might aggressively cut short-term rates to stimulate the sluggish ecomony hurt by concerns about a war in Iraq. Anticipation of lower rates drove yields on debt issues due in one year below yields on debt issues due in three months. Consequently, we focused on debt issues maturing in three months or less because we believed they offered better value than one-year securities at that time.

When the change in monetary policy occurred in late June, the Fed reduced the interbank overnight lending rate a quarter of a percentage point to 1%. This was less than the half-percentage-point rate cut expected by some investors.

An investment in the Prudential Series Fund Money Market Portfolio is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in the Portfolio. The yield quotation more closely reflects the current earnings of the Money Market Portfolio than the total return quotation.

^*	Source: iMoneyNet, Inc., based on 368 funds in the iMoneyNet Prime Retail universe. Weekly 7-day current net yields of the Money Market Portfolio and the iMoneyNet Prime Retail universe as of 12/29/2003. Prudential Investments LLC is the source for Money Market Portfolio information.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Natural Resources Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC

Although we expect periodic pullbacks in both the gold and silver markets, we have been adding to the Portfolio’s gold exploration positions. Many of these companies are making new discoveries and, in our opinion, are attractively valued. We increased the Portfolio’s exposure to copper stocks because we expect cutbacks in supply and increases in demand. We are positioned to benefit from the increased drilling that we believe will be needed to meet demand for natural gas. We think many investors are

underestimating the amount of drilling needed to maintain natural gas supplies over the long term. We also anticipate oil prices will remain above expectations.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Natural Resources Portfolio	28.82	%	39.00	%	14.12	%	24.46	%	13.28	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-0.57	%	11.06	%
Lipper (VIP) Natural Resources Funds Average²	25.58	%	33.70	%	9.65	%	14.55	%	7.88	%

Natural Resources Portfolio inception date: 5/1/1988.

LOGO

The Natural Resources Portfolio returned 39.00%, while the S&P 500 Index rose 28.67% and the Lipper (VIP) Natural Resources Funds Average was 33.70%.

n	PERFORMANCE REVIEW

As our research led us to expect, a number of commodities either began or continued strong upward price trends. Increasing economic strength, supply/demand imbalances, and rising investor confidence contributed to higher share prices in many natural resource sectors: precious metals (such as gold and platinum), base materials (such as aluminum, copper, and iron ore), and energy (oil, natural gas, and coal). The Portfolio’s strong return was broadly supported; very few individuals stocks had more than a marginal negative impact. Phelps Dodge, which mines copper, was among the top contributors. Copper demand, particularly from China, continues to rise, pushing inventories lower and prices higher. Freeport McMoRan Copper & Gold owns the world’s largest gold mine, but generates even more revenue from its copper production. Its shares also performed well. Comphania Vale do Rio Doce, a Brazilian firm that is the world’s largest iron ore producer, was another top contributor. A perception of reduced foreign-market risk, rising commodity prices, and robust industry fundamentals resulted in higher Wall Street price targets for its stock.

For much of the year, shares of the oil services companies had no clear direction, despite much higher average energy prices than consensus expectations. Because share prices were volatile, the Portfolio’s holdings in the sector included both winners and losers, despite substantial gains virtually across the board during the very cold U.S. weather at the end of the year. Weatherford International, TESCO Corp., and ENSCO International were detractors from return. Smith International, BJ Services, and Maverick Tube made positive contributions. Positions in Stillwater Mining, Meridian Gold, and Newfield Exploration also detracted from the Portfolio’s return.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change. Natural resources companies are affected by numerous factors, including events of nature, inflationary pressures, and international politics. Sector funds may experience greater short-term price volatility than more diversified equity funds and are most suitable for the aggressive portion of an investment portfolio.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance dated quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Small Capitalization Stock Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

The Portfolio consists primarily of the 600 stocks that comprise the Standard & Poor’s SmallCap 600 Index in approximately the same proportions they represent in the Index. The Portfolio aims to replicate the performance of the Standard & Poor’s SmallCap 600 Index, and tends to reflect the general trends of the overall market for stocks of U.S. companies with relatively small capitalization.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages ¹	Six Month		1-Year		3-Year		5-Year		Since Inception
Small Capitalization Stock Portfolio	22.63	%	38.27	%	7.48	%	9.55	%	12.66	%
S&P SmallCap 600 Index²	22.90	%	38.79	%	8.07	%	9.67	%	13.05	%
Lipper (VIP) Small-Cap Core Funds Average²	23.49	%	41.42	%	5.91	%	9.12	%	11.32	%

Small Capitalization Stock Portfolio inception date: 4/25/1995.

LOGO

The Small Capitalization Stock Portfolio returned 38.27% in 2003, while the S&P SmallCap 600 Index rose 38.79%, and the Lipper (VIP) Small-Cap Core Funds Average rose 41.42%.

n	PERFORMANCE REVIEW

The Standard & Poor’s SmallCap 600 Index outperformed Standard & Poor’s large-cap S&P 500 Index by more than 10 percentage points in 2003 (38.79% vs. 28.67%). This is the fourth straight year in which the Index has outperformed large-cap stocks.

Market strength was broad. All nine economic sectors of the Index-capital goods, consumer durables, consumer non-durables, energy, finance, materials and services, technology, transportation, and utilities-had double-digit gains. The smallest gain was 23.3% for the utilities sector. The largest was 51.6% for consumer durables. Gains in the other sectors were between 30% and 47%.

The outperformance of stocks of smaller companies over those of larger firms can be seen within the constituents of the Index itself. When we rank-order them by market capitalization, the largest 10% percent of companies in the Index (those whose market values exceed $1.397 billion) had an average total return of 23.8%. However, the smallest 10% percent (companies below $238 million in market value) had an 87.5% average total return. This relationship between company size and share return was generally consistent throughout the Index.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Aggressive Growth Asset Allocation Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENTS LLC

The SP Aggressive Growth Asset Allocation Portfolio invests in seven different equity portfolios together covering growth and value styles. It allocates 35% to U.S. large-cap stock, 35% to U.S. small/mid-cap stock, and 30% to the major international markets.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Aggressive Growth Asset Allocation Portfolio	18.64	%	32.77	%	-5.34	%	-6.88	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
Aggressive Growth AA Custom Blended Index²	21.43	%	37.40	%	-1.02	%	-3.08	%
Lipper (VIP) Multi-Cap Core Funds Average²	15.77	%	31.49	%	-3.28	%	-5.22	%

SP Aggressive Growth Asset Allocation Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Aggressive Growth Asset Allocation Portfolio returned 32.77% in 2003, while the S&P 500 Index rose 28.67%, the Aggressive Growth Asset Allocation Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s asset allocation) rose 37.40%, and the Lipper (VIP) Multi-Cap Core Funds Average was 31.49%.

n	PERFORMANCE REVIEW

The high return of the Portfolio as compared with the S&P 500 Index was due to its aggressive asset allocation. It was a banner year for more volatile asset classes. The benchmarks for all of the Portfolio’s asset allocations rose 30% or more in 2003. The small-/mid-cap U.S. and international indexes had particularly strong returns. Small-cap stocks historically have tended to perform well in the early stages of an economic recovery. International stocks in general received a boost from the decline of the U.S. dollar against major foreign currencies.

The Portfolio’s poor performance relative to the Aggressive Growth Asset Allocation Custom Blended Index was due primarily to the underperformance of its allocations to SP Small/Mid Cap Value Portfolio and SP Deutsche International Equity Portfolio. SP Small/Mid Cap Value Portfolio underperformed its benchmark primarily because of its stock selection in the information technology and health care sectors. The largest factors in the underperformance of the SP Deutsche International Equity Portfolio was its stock selection in the capital goods industry group and in Japan.

Foreign investments are subject to the risks of currency fluctuation and the impact of social, political, and economic change, which may result in greater share price volatility.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP AIM Aggressive Growth Portfolio

n	MANAGED BY: AIM ADVISORS

By the end of 2003, the economy had improved markedly, and as we look to 2004, it remains to be seen whether headlines of new corporate scandals, heightened terror alerts, and renewed fears of Severe Acute Respiratory Syndrome (SARS) and Mad Cow disease will affect last year’s gains. Both the equity markets and the economy, however, are in a better position now compared with a year ago, which should bode well for growth in 2004.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP AIM Aggressive Growth Portfolio	16.52	%	26.51	%	-8.96	%	-12.37	%
Russell 2500 Index²	24.45	%	45.51	%	6.58	%	4.85	%
Russell 2500 Growth Index²	23.17	%	46.31	%	-2.56	%	-8.62	%
Lipper (VIP) Mid-Cap Growth Funds Average	17.13	%	36.14	%	-10.25	%	-15.22	%

SP AIM Aggressive Growth Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP AIM Aggressive Growth Portfolio returned 26.51% in 2003, while the Russell 2500 Index rose 45.51%, the Russell 2500 Growth Index rose 46.31% and the Lipper (VIP) Mid-Cap Growth Funds Average was 36.14%.

n	PERFORMANCE REVIEW

In the first half of 2003, as the country focused on conflict in Iraq, the domestic equity markets managed to post gains, and the U.S. economy grew at a sluggish pace. By the second half of the year, however, major combat operations ended, economic growth gathered momentum, and the equity markets experienced a broad-based rally. Gross Domestic (GDP) growth in the first quarter was a paltry 1.4%, but growth accelerated significantly to 8.2% by the third quarter. Fourth-quarter growth is estimated between 4% and 5% and GDP growth for the year should come in near 4.5%.

The financial markets were volatile in the first half of 2003 as geopolitical tensions escalated and combat began in Iraq. However, the major market indexes began a steep ascent by midyear and managed to finish the year with significant gains. The major equity indexes posted gains for the first time in three years. Small-cap stocks outperformed large small-cap stocks, and small-cap growth stocks outperformed small-cap value stocks.

At the beginning of the year, the Portfolio was positioned with an emphasis on core holdings until we believed an economic recovery was imminent. A quick resolution to the war caused a sharp market rally in April and May. The Portfolio underperformed its benchmarks during these months because it did not have the more volatile, lower-quality stocks that the market was rewarding.

As we began to see signs of the economic recovery and as companies posted positive earnings surprises, we repositioned the Portfolio to a more aggressive posture. We increased its weighting in stocks of companies whose earnings were expected to accelerate.

Over the year, the Portfolio underperformed its benchmark in the healthcare and technology sectors. The largest contribution to its return came from its consumer discretionary holdings.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP AIM Core Equity Portfolio

n	MANAGED BY: AIM ADVISORS

We continue to balance exposure to less cyclical companies with tactical investments in companies that are more leveraged to the economy. Given the Portfolio’s conservative posture, we have been careful to select economically sensitive companies that represent strong brands, are market leaders, and are trading at compelling valuations. This positioning is designed to provide investors with market participation in the event of a continued rally while providing some downside protection if markets weaken.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP AIM Core Equity Portfolio	13.14	%	23.69	%	-6.75	%	-10.98	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
Russell 1000 Index²	15.63	%	29.89	%	-3.78	%	-6.30	%
Lipper (VIP) Large-Cap Core Funds Average²	13.97	%	26.43	%	-6.02	%	-7.86	%

SP AIM Core Equity Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP AIM Core Equity Portfolio returned 23.69% in 2003, while the S&P 500 Index rose 28.67%, the Russell 1000 Index rose 29.89%, and the Lipper (VIP) Large-Cap Core Funds Average was 26.43%.

n	PERFORMANCE REVIEW

The financial markets were volatile in the first half of 2003 as geopolitical tensions escalated and combat began in Iraq. However, the major market indexes began a steep ascent by midyear and managed to finish the year with significant gains. The major equity indexes posted gains for the first time in three years. Small-cap stocks outperformed large-cap stocks, and small-cap growth stocks outperformed small-cap value stocks.

An underweight in the financial sector relative to the S&P 500 and the Russell 1000 benchmarks was the largest drag on comparative performance. The Portfolio was helped by its holdings in the consumer discretionary sector.

Relative performance in the information technology sector was helped by positions in Computer Associates, a company that designs, markets, and licenses computer software products, and Xilinx Inc., a company that designs, develops and markets complete programmable logic solutions. The overall top five contributors of the Portfolio for the year were Computer Associates International, Inc.; Intel Corp.; Best Buy Company; Xilinx Inc.; and McDonald’s Corporation.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Alliance Large Cap Growth Portfolio

n	MANAGED BY: ALLIANCE CAPITAL MANAGEMENT, LP

Our forecast for U.S. economic growth and the equity markets for 2004 is slightly ahead of consensus estimates, reflecting our generally optimistic view for the year. Consumers will receive the second installment of last year’s tax cut early in the year, which should reinforce the positive tone. The health of the U.S. consumer sector will remain robust, and the health of the U.S. corporate sector looks to be steadily improving as well.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Alliance Large Cap Growth Portfolio	12.45	%	23.86	%	-10.00	%	-13.43	%
Russell 1000 Index²	15.63	%	29.89	%	-3.78	%	-6.30	%
Russell 1000 Growth Index²	14.73	%	29.75	%	-9.36	%	-15.18	%
Lipper (VIP) Large-Cap Growth Funds Average²	13.63	%	28.37	%	-10.44	%	-14.61	%

SP Alliance Large Cap Growth Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP Alliance Large Cap Growth Portfolio returned 23.86%, while the Russell 1000 Index rose 29.89%, the Russell 1000 Growth Index rose 29.75%, and the Lipper (VIP) Large-Cap Growth Funds Average was 28.37%.

n	PERFORMANCE REVIEW

The healthcare sector led the market early in the period, but healthcare stocks pulled back somewhat when investors were attracted by stocks of companies more sensitive to the direction of the overall market. As a result, the Portfolio’s overweight in healthcare detracted from its performance. However, this was offset by favorable stock selection in the sector. Managed care stocks, such as UnitedHealth Group, Inc., responded well when a major benefits consulting firm estimated a 17.5% average premium increase in 2004. Pfizer, Amgen, Boston Scientific, and Medtronic also made notable contributions.

The Portfolio’s consumer discretionary stocks had a mixed performance. Most retailers experienced difficult sales, citing the conflict in Iraq, the economy, joblessness, higher gas prices and tough year-over-year sales as reasons for the weak figures. Some saw a modest pick up in the latter half of 2003, leading to speculation that the economy was gaining momentum. Although a position in Kohl’s was among those that detracted from the Portfolio’s return, Time Warner, Lowes, Home Depot, and Comcast made positive contributions. The favorable impact of an underweight in the consumer staples sector was partially offset by our stock selection in the sector, particularly a position in Colgate Palmolive.

An overweight in technology, which was the best-performing sector during the year, served relative performance well, but unfavorable stock selection offset this. Positions such as Marvell Technology turned in negative double-digit returns.

In the financial sector, positive selection among market-sensitive stocks outweighed the negative impact of a position in Freddie Mac. Trading around core positions (adding to positions on dips and trimming them back on strength) added value over the entire Portfolio, but especially in consumer finance names like MBNA.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Alliance Technology Portfolio

n	MANAGED BY: ALLIANCE CAPITAL MANAGEMENT, LP

On January 20, 2004, management of the Portfolio was assumed by the Dreyfus Corporation. The Portfolio’s name was changed, accordingly, to SP Technology Portfolio.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Alliance Technology Portfolio	21.68	%	42.39	%	-14.46	%	-20.21	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
S&P SuperComposite Information Technology Index²	25.55	%	47.88	%	-10.55	%	-20.20	%
Lipper (VIP) Specialty/Misc. Funds Average²	18.49	%	40.28	%	-11.31	%	-16.66	%

SP Alliance Technology Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Alliance Technology Portfolio returned 42.39% in 2003, while the S&P 500 Index rose 28.67%, the S&P SuperComposite Information Technology Index (“Supercomposite”) rose 47.88%, and the Lipper (VIP) Specialty/Misc. Funds Average was 40.28%.

n	PERFORMANCE REVIEW

The Portfolio posted strong absolute performance, outperforming the S&P 500 Index as technology stocks outperformed the broader stock markets. However, it underperformed the Supercomposite. Although the Portfolio’s individual holdings within the computer hardware industry outperformed those of the Supercomposite, an underweight in the sector hurt relative performance during the period. Intel and Cisco Systems were strong absolute holdings during the year, but also were underweight compared with the Supercomposite. The Portfolio was underweight in these two stocks because our policy is to trim individual positions that exceed 7% of the Portfolio’s assets in order to diversify the Portfolio and thus help control risk.

From a sector perspective, the Portfolio benefited from its weighting in and the performance of its contract manufacturing holdings, including Flextronics and Sanmina-SCI. Internet leader eBay and networking equipment provider Juniper Networks were strong contributors to performance versus the Supercomposite. Semiconductor holdings, notably Altera, Marvell Technology, and Taiwan Semiconductor, and software companies, including SAP and Veritas, contributed positively to absolute performance.

The Portfolio focuses its investments in the technology sector, thereby increasing its vulnerability to any single economic, political, or regulatory development.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Balanced Asset Allocation Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENTS LLC

The SP Balanced Asset Allocation Portfolio invests in nine different portfolios with a 60%:40% equity/fixed income mix. Its equity holdings include growth and value styles. It allocates 35% to U.S. large-cap stocks, 15% to U.S. small-/mid -cap stocks, and 10% to the major international markets. Its fixed income holdings include a core bond portfolio and an allocation to the more volatile high yield market.

n	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages ¹	Six Month		1-Year		3-Year		Since Inception
SP Balanced Asset Allocation Portfolio	11.03	%	22.87	%	0.67	%	0.18	%
S&P 500 Index ²	15.14	%	28.67	%	-4.05	%	-6.13	%
Balanced AA Custom Blended Index ²	12.12	%	23.90	%	2.36	%	0.94	%
Lipper (VIP) Balanced Funds Average ²	9.28	%	18.97	%	1.34	%	0.89	%

SP Balanced Asset Allocation Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Balanced Asset Allocation Portfolio returned 22.87% in 2003, while the S&P 500 Index rose 28.67%, the Balanced Asset Allocation Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s asset allocation) rose 23.90%, and the Lipper (VIP) Balanced Funds Average gained 18.97%.

n	PERFORMANCE REVIEW

In 2003, more volatile asset classes generally performed better than conservative asset classes. In particular, stocks substantially outperformed bonds. As a result, the Portfolio’s 40% allocation to bonds kept its return below the rise of the S&P 500 Index. However, the gap was considerably reduced by the Portfolio’s allocations to several of the more volatile asset classes that performed particularly well in 2003: small-/mid-cap U.S. stocks and international stocks. Benchmarks for these asset classes returned more than 35% over 2003. Small-cap stocks historically have tended to perform well in the early stages of an economic recovery. International stocks in general received a boost from the decline of the U.S. dollar against major foreign currencies.

The Portfolio’s return was almost in line with the Balanced Asset Allocation Custom Blended Index. It was held back only slightly by the substantial underperformance of some of its smaller asset allocations, SP Small/Mid Cap Value, SP Alliance Large Cap Growth, and SP Deutsche International Equity. These were partially offset by the strong performance of its largest single allocation, SP PIMCO Total Return, which benefited from favorable security selection and from holdings in several fixed income sectors that performed particularly well.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s Inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Conservative Asset Allocation Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENTS LLC

The SP Conservative Asset Allocation Portfolio invests in seven different portfolios in a conservative 65:35 ratio of fixed income to equity. The broadly diversified SP PIMCO Total Return Portfolio, a core fixed income portfolio, has a 55% allocation. The equity holdings are diversified over several allocations. They cover both growth and value styles. U.S. large-cap stocks receive a 30% allocation, while small-cap markets are allocated 5%.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Conservative Asset Allocation Portfolio	6.29	%	16.49	%	3.04	%	3.04	%
S&P 500 Index ²	15.14	%	28.67	%	-4.05	%	-6.13	%
Conservative AA Custom Blended Index²	6.53	%	15.23	%	4.39	%	3.62	%
Lipper (VIP) Income Funds Average ²	7.32	%	16.94	%	3.81	%	3.50	%

SP Conservative Asset Allocation Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Conservative Asset Allocation Portfolio returned 16.49% in 2003, while the S&P 500 Index rose 28.67%, the Conservative Asset Allocation Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s asset allocation) rose 15.23%, and the Lipper (VIP) Income Funds Average was 16.94%.

n	PERFORMANCE REVIEW

However, more than half of its assets are allocated to the SP PIMCO Total Return Portfolio, which turned in a very strong performance. The SP PIMCO Total Return Portfolio benefited from favorable security selection and allocations to several fixed income sectors that performed particularly well. This more than offset the poor relative performance of some of the stock portfolios as compared with their benchmarks. They had much smaller allocations, so the underperformances had less impact.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For

a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Davis Value Portfolio

n	MANAGED BY: DAVIS ADVISORS LP

Our holdings are quite different in composition from the S&P 500 Index. Our investment strategy for the SP Davis Value Portfolio is based on extensive company research. We try to buy shares of companies whose earnings are growing when we can get them at value prices, and we normally hold them for the long term. After a strong year such as 2003, we caution investors not to be overly optimistic for 2004. We are strong supporters of long-term buy-and-hold investing.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Davis Value Portfolio	16.11	%	29.40	%	-0.78	%	-0.20	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
Russell 1000 Value Index²	16.55	%	30.03	%	1.22	%	2.23	%
Lipper (VIP) Multi-Cap Value Funds Average²	16.70	%	31.55	%	1.07	%	2.36	%
Lipper (VIP) Large-Cap Value Funds Average²	16.14	%	28.50	%	-0.91	%	0.75	%

SP Davis Value Portfolio inception date: 9/22/2000. Although Lipper classifies the Portfolio within the Multi-Cap Value Funds Average, the returns for the Large-Cap Value Funds Average are also shown, because the management of the portfolios included in the Large-Cap Value Funds Average is more consistent with the management of the Portfolio. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP Davis Value Portfolio returned 29.40% in 2003, while the S&P 500 Index increased 28.67%, the Russell 1000 Value Index rose 30.03%, the Lipper (VIP) Multi-Cap Value Funds Average was 31.55%, and the Lipper (VIP) Large-Cap Value Funds Average gained 28.50%.

n	PERFORMANCE REVIEW

The Portfolio’s large holdings in financial services companies and their strong performance through the year were the most important positive factors in the Portfolio’s performance as compared with its benchmarks. American Express (up 37.66%) and Progressive Corp. (up 68.68%) were important contributors in this sector.

As a group, the Portfolio’s holdings in the capital goods sector outperformed those in the S&P 500 Index by a substantial margin. Tyco International (up 55.57%) was the most important contributor to the performance of this sector.

However, relative performance was hurt by the Portfolio’s healthcare positions and by its cash holdings in the rising market. This year’s return was also hurt by Kraft (down 15.42% over the year). The Portfolio’s position in Safeway was sold in 2003 and a position was established in Takefuji. These declined 14.43% and 13.63%, respectively, during the portions of the year they were held, detracting from the Portfolio’s return.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Deutsche International Equity Portfolio

n	MANAGED BY: DEUTSCHE ASSET MANAGEMENT INVESTMENT SERVICES LIMITED (DEAMIS)

The United States continues to drive global growth. We believe that inflationary pressures will begin to reappear, but we do not see this as entirely negative. We believe that global reflation will significantly benefit Asia, including Japan. In our view, current growth forecasts for Asia are too low. Consequently, we expect positive earnings surprises. Stocks in the region also remain cheaper than in areas where valuations are relatively full.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Deutsche International Equity Portfolio	21.05	%	27.37	%	-6.32	%	-7.33	%
MSCI EAFE Index²	26.59	%	38.59	%	-2.91	%	-3.50	%
Lipper (VIP) International Funds Average²	24.34	%	35.41	%	-4.25	%	-5.28	%

SP Deutsche International Equity Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Deutsche International Equity Portfolio returned 27.37% in 2003, while the MSCI EAFE Index rose 38.59% and the Lipper (VIP) International Funds Average was 35.41%.

n	PERFORMANCE REVIEW

In 2003 international equities recorded stellar gains, enhanced by currencies strengthening against the U.S. dollar. The Portfolio’s absolute return reflected the excellent market.

However, the Portfolio’s focus on companies that have sustainable business models and quality franchises performance this year relative to its benchmark. Stocks of highly leveraged (indebted) companies and those with earning prospects performed particularly well in 2003. By and large, the more leveraged the company, the greater its share price rose. We continue to emphasize quality investments, which we believe will outperform in the long run. The Portfolio’s predominately large-cap focus also held back this year’s relative performance because small-cap stocks significantly outperformed large-cap stocks. Stocks of smaller companies, whose earnings tend to be more cyclical, traditionally do well when expectations of a global economic recovery are incorporated into share prices.

The principle detractors from performance were in the financial sector. Much of the Portfolio’s relative underperformance in the sector was due to not owning some of the most-leveraged financial companies, whose shares rallied sharply as their credit quality improved. However, a number of financial stocks made important positive contributions to the Portfolio’s return, including Allianz, Royal Bank of Scotland, and Mizuho Financial Group (the world’s second largest bank in terms of assets). Mizuho’s earnings improved significantly over its past performance. We believe that it has turned the corner on a number of major measures of asset quality.

Consumer discretionary holdings, particularly Sony, Fuji Photo, Bridgestone, Honda, and Toyota, also detracted from relative performance. Many investors appeared to be anticipating the negative impact of an appreciating yen on Japanese exporters.

Foreign investments are subject to the risks of currency fluctuation and the impact of social, political, and economic change, which may result in greater share price volatility.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Growth Asset Allocation Portfolio

¨	MANAGED BY: PRUDENTIAL INVESTMENTS LLC

The SP Growth Asset Allocation Portfolio diversifies its 80% allocation to equity over seven different portfolios. It allocates 25% to small/mid-cap U.S. stocks, 35% to U.S. large-cap stocks, and 20% to the major international markets. Its 20% fixed income allocation includes core and a high yield components. It provides broadly diversified exposure within the bond market and also across both growth and value equity investing styles.

¨	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages	Six Month		1-Year		3-Year		Since Inception
SP Growth Asset Allocation Portfolio	15.06	%	28.27	%	-2.17	%	-3.37	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
Growth AA Custom Blended Index²	16.91	%	31.06	%	0.74	%	-1.08	%
Lipper (VIP) Multi-Cap Core Funds Average²	15.77	%	31.49	%	-3.28	%	-5.22	%

SP Growth Asset Allocation Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Growth Asset Allocation Portfolio returned 28.27% in 2003, while the S&P 500 Index rose 28.67%, the Growth Asset Allocation Custom Blended Index (a blend of indexes customized by Prudential Investments to match the Portfolio’s asset allocation) rose 31.06%, and the Lipper (VIP) Multi-Cap Core Funds Average was 31.49%.

¨	PERFORMANCE REVIEW

The Portfolio’s return was in line with the S&P 500 Index despite its 20% allocation to fixed income investments in a year in which stocks substantially outperformed bonds. Its allocations to small /mid-cap U.S. stocks added to performance. Small-cap stocks historically have tended to perform well in the early stages of an economic recovery. Its international stock portfolios in general received a boost from the decline of the U.S. dollar against major foreign currencies.

The Portfolio’s fixed income allocations outperformed their benchmarks, but bond portfolios tend to stay closer to their benchmark than stocks, so the strong performance of the Portfolio’s bonds did not offset the impact of some underperforming stock allocations. Two of these particularly detracted from the Portfolio’s return.

The SP Small/Mid Cap Value holdings, one of the Portfolio’s larger allocations, trailed their benchmark, primarily because of underperforming stock selection in the information technology and healthcare sectors. The SP Deutsche International Equity allocation was a substantial underperformer, primarily because of poor stock selection in the capital goods industry group and in Japan.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP INVESCO Small Company Growth Portfolio

n	MANAGED BY: INVESCO FUNDS GROUP

By the end of 2003, the economy had improved markedly, and as we look to 2004, it remains to be seen whether headlines of new corporate scandals, heightened terror alerts, and renewed fears of Severe Acute Respiratory Syndrome (SARS) and Mad Cow disease will affect last year’s gains. Both the equity markets and the economy, however, are in a better position now compared to a year ago, which should bode well for growth in 2004.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP INVESCO Small Company Growth Portfolio	18.55	%	34.71	%	-8.03	%	-12.24	%
Russell 2000 Index²	24.92	%	47.25	%	6.27	%	3.47	%
Russell 2000 Growth Index²	24.48	%	48.54	%	-2.03	%	-8.46	%
Lipper (VIP) Small-Cap Growth Funds Average²	21.38	%	41.73	%	-5.58	%	-10.11	%

SP INVESCO Small Company Growth Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP INVESCO Small Company Growth Portfolio returned 34.71%, while the Russell 2000 Index rose 47.25%, the Russell 2000 Growth Index rose 48.54%, and the Lipper (VIP) Small-Cap Growth Funds Average was 41.73%.

n	PERFORMANCE REVIEW

In the first half of 2003, as the country focused on conflict in Iraq, the U.S. economy grew at a sluggish pace. By the second half of the year, however, major combat operations ended, economic growth gathered momentum, and the equity markets experienced a broad-based rally. Gross Domestic Product (GDP) growth in the first quarter was a paltry 1.4%, but growth accelerated significantly to 8.2% by the third quarter. Fourth-quarter growth is estimated between 4% and 5% and GDP growth for the year should come in near 4.5%.

The financial markets were volatile in the first half of 2003 as geopolitical tensions escalated and combat began in Iraq. However, the major market indexes began a steep ascent by midyear and managed to finish the year with significant gains. The major equity indexes posted gains for the first time in three years. Small-cap stocks outperformed large-cap stocks, and small-cap growth stocks outperformed small-cap value stocks.

The information technology sector made the largest positive contribution to the Portfolio’s performance, particularly semiconductor holdings. The consumer discretionary, healthcare, and industrials sectors also contributed positively to the Portfolio’s return. However, the Portfolio’s underweight in the materials sector detracted from its performance relative to its benchmarks. Its energy holdings underperformed, particularly oil and gas equipment services positions.

We think that the economy and corporate profits can continue to improve, and that the impact of large tax cuts and low interest rates will further increase corporate and consumer spending. We continue to increase the Portfolio’s exposure to the industrial and consumer discretionary sectors in the belief they have the potential to lead in an economic recovery.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Jennison International Growth Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC

We expect world economies will likely expand again in 2004. Although we appear to be only in the early stages of a rebound in global business spending, U.S. and U.K. consumers have been responding to the stimulative effects of lower interest rates for an unusually long time. This suggests that Gross Domestic Product (GDP) gains in these two important countries will be relatively modest for this point in the business cycle. We think that a slower growth environment will shift investor attention away from the highly leveraged cyclical firms that were the stars of 2003. We expect the markets to refocus on well-managed companies like those we hold whose franchises permit them to steadily gain market share from weaker rivals.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Jennison International Growth Portfolio: Class I	24.52	%	39.57	%	-11.40	%	-14.83	%
SP Jennison International Growth Portfolio: Class II	24.31	%	39.14	%	-11.72	%	-14.73	%
MSCI EAFE Index²	26.59	%	38.59	%	-2.91	%	-3.50	%
Lipper (VIP) International Funds Average²	24.34	%	35.41	%	-4.25	%	-5.28	%

SP Jennison International Growth Portfolio Class I inception date: 9/22/2000. SP Jennison International Growth Portfolio Class II inception date: 10/4/2000. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP Jennison International Growth Portfolio (Class I) returned 39.57% in 2003, while the MSCI EAFE Index rose 38.59% and the Lipper (VIP) International Funds Average was 35.41%.

n	PERFORMANCE REVIEW

The year 2003 was very strong for world equity markets. The SP Jennison International Growth Portfolio produced strong gains over the period, outpacing its Lipper peer group average and the MSCI EAFE Index.

The Portfolio had good performance in most regions of the world and across most sectors. Two areas are worthy of mention, though. The first is alternative telecommunications providers. A late-2002 change in regulations in Japan effectively made broadband Internet connections cheaper than dial-up, and led to the spectacular increase in subscribers for our holding Yahoo Japan. In the U.K., good operating performance combined with a more forgiving operating and financing environment produced excellent gains for leading alternative telecom services provider, Colt Telecom. The second area is China-based manufacturing, where TechTronic Industries and Esprit Holdings, two Hong Kong-based firms, were standout performers for us. TechTronic makes small appliances, many of which are sold through an arrangement with Home Depot under the Ryobi brand name. So it benefited not only from a strong do-it-yourself market in the U.S. but also from Home Depot’s decision to feature Ryobi as one of its “house” brands. Esprit is an apparel company whose successful European operations are enjoying a large profit benefit from Chinese sourcing, while new management tries to remodel its U.S. and Asian subsidiaries along its European lines.

Foreign investments are subject to the risks of currency fluctuation and the impact of social, political, and economic change, which may result in a greater share price volatility.

Small and midsize companies may result in a greater have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Large Cap Value Portfolio

n	MANAGED BY: FIDELITY MANAGEMENT AND RESEARCH COMPANY (FMR)

On January 20, 2004, management of the Portfolio was assumed by the J.P. Morgan Investment Management and Hotchkis and Wiley Capital Management LLC.

At the beginning of 2003, the Portfolio was underweight in financials as compared with its benchmark, while emphasizing energy and consumer discretionary stocks. It had 204 individual positions, but its top 10 accounted for 26.0% of its assets. It continues to be focused on stocks of companies with improving fundamentals that offer high-quality earnings at reasonable share prices. We consider both short-term and long-term earnings growth.

n	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Large Cap Value Portfolio	15.93	%	26.76	%	-1.06	%	0.46	%
Russell 1000 Index²	15.63	%	29.89	%	-3.78	%	-6.30	%
Russell 1000 Value Index²	16.55	%	30.03	%	1.22	%	2.23	%
Lipper (VIP) Large-Cap Value Funds Average²	16.14	%	28.50	%	-0.91	%	0.75	%

SP Large Cap Value Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Large Cap Value Portfolio returned 26.76%, while the Russell 1000 Index rose 29.89%, the Russell 1000 Value Index rose 30.03%, and the Lipper (VIP) Large-Cap Value Funds Average was 28.50%.

n	PERFORMANCE REVIEW

The U.S. equity market posted broad double-digit gains, ending a three-year streak of negative returns. It was the S&P 500 Index’s strongest 12-month performance since 1997. Value stocks narrowly outperformed growth stocks. Continued signs of strength in the U.S. economy, increased corporate profits, diminished likelihood that any war in Iraq would be prolonged, and high levels of fiscal and monetary stimulus combined to create a supportive environment for the equity markets.

During this period, the Portfolio posted positive returns but trailed the Russell 1000 Value Index. Security selection in the industrials and information technology sectors detracted from performance. Within the industrials sector, the capital goods group accounted for more than half of the Portfolio’s underperformance. The Portfolio benefited from good stock selection in the materials and consumer staples sectors, and also received some benefit from a slight overweighting in financials.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.				Annual Report		December 31, 2003

SP MFS Capital Opportunities Portfolio

n	MANAGED BY: MASSACHUSETTS FINANCIAL SERVICES COMPANY (MFS)

Overall improvement in the global economy helped to drive market rallies that began in mid-March and lasted, with only a few pauses, through the end of 2003. Largely left behind were concerns about an uncertain global political climate and sluggish economic conditions. In our view, investors, like consumers, became more optimistic about the future and aggressively moved out of more conservative holdings and into higher-risk, more economically sensitive securities.

n	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages ¹	Six Month		1-Year		3-Year		Since Inception
SP MFS Capital Opportunities Portfolio	12.04	%	26.80	%	-11.47	%	-12.92	%
S&P 500 Index ²	15.14	%	28.67	%	-4.05	%	-6.13	%
Russell 1000 Index ²	15.63	%	29.89	%	-3.78	%	-6.30	%
Lipper (VIP) Large-Cap Core Funds Average ²	13.97	%	26.43	%	-6.02	%	-7.86	%
Lipper (VIP) Multi-Cap Core Funds Average ²	15.77	%	31.49	%	-3.28	%	-5.22	%

SP MFS Capital Opportunities Portfolio inception date: 9/22/2000. Although Lipper classifies the Portfolio within the Multi-Cap Core Funds Average, the returns for the Large-Cap Core Funds Average are also shown, because the management of the portfolios included in the Large-Cap Core Funds Average is more consistent with the management of the Portfolio. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP MFS Capital Opportunities Portfolio returned 26.80%, while the S&P 500 Index rose 28.67%, the Russell 1000 Index rose 29.89%, the Lipper (VIP) Large-Cap Core Funds Average was 26.43%, and the Lipper (VIP) Multi-Core Funds Average was 31.49%.

n	PERFORMANCE REVIEW

The Portfolio underperformed its benchmarks primarily because of its technology and leisure holdings and its cash position. Although it averaged less than 4% of assets over the period in cash, this was the biggest detractor from performance as compared with indexes because global markets continued to rise. In technology, an underweight in Intel was the largest factor hurting relative performance. Investors’ concerns about weak corporate technology spending abated during the period, while Intel stock improved on the news that certain product lines showed surprising strength. Positions in Network Associates and Peoplesoft also detracted from the Portfolio’s performance. Network Associates’ stock fell after the firm missed analysts’ earnings projections due to a sizable drop in sales of its Web security and anti-virus software. Peoplesoft’s stock trailed the technology sector overall despite a strong competitive position, a healthy balance sheet, and Oracle’s offer to acquire the company at a premium. We have since sold our position in Intel, Network Associates, and Peoplesoft. A position in Owens Illinois, which manufactures glass and plastic packaging, also detracted from the Portfolio’s performance. It faced rising prices for the oil used to make its plastic bottles and for the natural gas used to power several of its factories.

The Portfolio generated its best performance relative to the benchmark in the retailing, consumer staples, and healthcare sectors. Sears’ share price rebounded when it sold its credit card division at a very attractive price and used the proceeds to buy back some of its stock. Home Depot benefited from strong sales figures, an exclusive arrangement with John Deere, the remodeling of many of its stores, and a newly expanded appliance business. In healthcare, Genentech stock benefited from a string of good news, including new positive information about its colorectal drug Avastin, its psoriasis drug Raptiva, and its arthritis drug Rituxan. The Portfolio benefited from an underweight in Johnson & Johnson, which lagged the market.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Mid Cap Growth Portfolio

n	MANAGED BY: CALAMOS ASSET MANAGEMENT

Entering 2003, on the heels of bear-bitten 2002, many investors questioned whether our markets were in a continuing decline. We maintained that, despite the extent of the downturn, the economy was undergoing a cyclical process of clearing out overcapacity in some economic sectors. Notwithstanding the geopolitical tensions, we positioned our equity portfolios for economic recovery. As events in Iraq unfolded and the worst predictions fell by the wayside, the market climbed the proverbial “wall of worry” as we anticipated.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP MidCap Growth Portfolio	19.87	%	40.10	%	-15.91		-15.27
Russell Midcap Index²	21.30	%	40.06	%	3.47	%	2.05	%
Russell Midcap Growth Index ²	20.19	%	42.71	%	-6.13	%	-13.04	%
Lipper (VIP) Mid-Cap Growth Funds Average²	17.13	%	36.14	%	-10.25	%	-15.22	%
Lipper (VIP) Multi-Cap Growth Funds Average²	16.38	%	35.24	%	-10.73	%	-15.76	%

SP Mid Cap Growth Portfolio inception date: 9/22/2000. Although Lipper classifies the Portfolio in the Multi-Cap Growth Funds Average, the returns for the Mid-Cap Growth Funds Average is also shown because the management of the portfolios in the Mid-Cap Growth Funds Average is more consistent with the management of the Portfolio. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Mid Cap Growth Portfolio returned 40.10% in 2003, while the Russell Midcap Index rose 40.06%, the Russell Midcap Growth Index returned 42.71%, and the Lipper (VIP) Mid-Cap Growth Funds Average was 36.14%.

n	PERFORMANCE REVIEW

The Portfolio’s performance was quite strong in absolute terms, although it trailed the Russell Midcap Growth Index slightly. It was helped by our positioning it for an economic recovery. The return was led by an overweight in technology because we had a bullish outlook for areas that would benefit from increased capital expenditures. Stocks such as Foundry Networks, Yahoo!, and Symantec had significant gains over the year. Although telecommunication services was a small percentage of the Portfolio, it also contributed substantial gains in 2003. Nextel was a top performer in the sector and added significant value.

Consumer discretionary stocks that did well for the Portfolio include Amazon.com, Harman International, Coach, and KB Home. The U.S. consumer was the steadying factor during the economic downturn and continued to keep the economy from sinking deeper than it did. The Portfolio had been overweight in consumer-related areas in 2002 and the beginning of 2003, but we then reduced its holdings slightly in favor of companies that we expected to benefit from rising capital expenditures. In the energy sector, Apache Corporation contributed to performance.

The Portfolio’s underperformance was primarily the result of what it didn’t hold, largely companies in the Index that turned in stellar performance despite having poor balance sheets and either no earnings or losses. Their shares had been priced as if these firms were going out of business. They may have done so if the recovery had taken longer. Their share prices recorded large percentage increases from their low levels at the beginning of the year. It’s not uncommon for such stocks to perform well in the beginning stages of a recovery from bear market lows, but the risk in investing in them is substantial. Calamos’ investment process is focused on companies that have high and sustainable growth rates and quality balance sheets

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.				Annual Report		December 31, 2003

SP PIMCO High Yield Portfolio

n	MANAGED BY: PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

While corporate credit fundamentals continue to strengthen, given the extremely strong rally in the high yield market in 2003, certain sectors appear to be overvalued. We plan to trim exposure and take profits within these areas and among issues with longer maturities that could be adversely affected by rising interest rates.

We continue to see value in the utility sector. Unlike many of the underperforming sectors in 2002 that made dramatic recoveries in 2003, we believe utilities still have upside potential. We also feel the cable and telecommunications sectors will continue to offer attractive relative value and we plan to maintain our overweight in these areas. Consumer cyclicals will likely remain a significant underweight as high consumer debt levels and a sluggish job market could limit the performance of these issuers. We plan to retain our exposure to emerging market sovereign debt as this sector offers attractive value.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP PIMCO High Yield Portfolio	6.80	%	22.41	%	8.43	%	8.33	%
Merrill Lynch U.S. High Yield Master II BB-B Rated Index²	7.40	%	22.95	%	8.55	%	6.58	%
Lehman Intermediate BB Corp. Index²	6.10	%	17.68	%	8.78	%	8.06	%
Lipper (VIP) High Current Yield Funds Average²	8.41	%	23.87	%	7.53	%	4.97	%

SP PIMCO High Yield Portfolio inception date: 9/22/2000. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP PIMCO High Yield Portfolio returned 22.41% in 2003, while the Merrill Lynch U.S. High Yield Master II BB-B Rated Index gained 22.95%, the Lehman Intermediate BB Corporate Index rose 17.68%, and the Lipper (VIP) High Current Yield Funds Average was 23.87%.

n	PERFORMANCE REVIEW

While corporate bonds in general posted strong returns in 2003, high yield debt securities outperformed their investment grade counterparts by roughly 20% over the year. The best performing segment of the high yield market was lower-rated issues, as CCC and lower-rated issues rose approximately 60% in 2003, more than double the returns of BB and B-rated issues. The four sectors of the high yield market that lagged in 2002, air transportation, telecom, cable/satellite TV, and utilities, led the asset class higher in 2003.

The Portfolio was aided by favorable security selection among telecom and pipeline bonds. Our exposure to B-rated bonds enhanced results as well, as B-rated securities outpaced BB-rated issues. An overweight to utilities was a positive for relative performance as the sector outperformed amid issuer upgrades. Underweight positions in both healthcare and consumer noncyclicals were a positive as these sectors lagged the overall market. The Portfolio’s tactical allocation to emerging market bonds boosted returns as this sector generated outstanding results for the year.

Conversely, chemicals outperformed and our underweight hurt relative performance. In addition, exposure to higher-rated issues within the metals and mining sector was a drag on performance. The Portfolio’s exposure to the BBB-rated sector detracted from returns. However strong security selection within this higher-quality tier offset the negative sector impact.

High yield bonds, also known as “junk bonds,” are subject to greater credit and market liquidity risks, which may result in greater share price volatility.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP PIMCO Total Return Portfolio

n	MANAGED BY: PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

We believe the global economic recovery will be sustained in 2004 as China joins the United States as an engine for growth. U.S. interest rates could rise up to 1% by the end of 2004 as the markets anticipate the Federal Reserve raising the federal funds rate. It’s our belief that interest rates will be volatile in 2004 as any pauses in growth will trigger uncertainty and fluctuations. While growth should remain strong, a sluggish recovery in the job market, productivity gains, and the deflationary effects of Chinese exports will keep inflation well contained.

Given our outlook, we’ll take a defensive posture with the Portfolio. In particular, we anticipate underweighting fully priced mortgages and corporates in favor of more compelling sectors and strategies. We will target a below-index duration to protect relative returns against the risk of upward pressure on interest rates. We plan to emphasize Treasury inflation-protected securities (TIPS), which hedge against inflation risk and are less volatile than bonds when rates rise. We will continue to hold high yielding emerging-market bonds, which we feel will continue to enhance results due to their improving fundamentals.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP PIMCO Total Return Portfolio	0.58	%	5.85	%	7.96	%	8.93	%
Lehman Brothers Aggregate Bond Index²	0.17	%	4.10	%	7.57	%	8.33	%
Lipper (VIP) Intermediate Investment-Grade Debt Funds Average²	0.34	%	5.14	%	7.33	%	7.98	%

SP PIMCO Total Return Portfolio inception date: 9/22/2000. For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

LOGO

The SP PIMCO Total Return Portfolio returned 5.85% in 2003, while the Lehman Brothers Aggregate Bond Index gained 4.10% and the Lipper (VIP) Intermediate Investment-Grade Debt Funds Average rose 5.14%.

n	PERFORMANCE REVIEW

Bonds gained ground in 2003 despite volatile interest rates, led by higher yielding corporate bonds and emerging-market securities. For the year, the Portfolio outperformed its benchmark Index driven by favorable security selection. Allocations to TIPS and municipal bonds helped returns as these less volatile assets outperformed amid rising rates. Emerging-market bonds strongly boosted returns as credit fundamentals within the asset class continued to improve. Asset-backed bonds added to returns due to their relatively high yields. The Portfolio’s select mortgages added value as well. Modest currency exposure to the euro and yen helped returns as the dollar fell amid concern about the U.S. trade deficit. Interest-rate strategies were neutral-to-slightly positive as a near index duration and curve position had little impact on returns.

Conversely, an underweight in corporate bonds was negative as profits and margins improved. However, positive security selection helped to mitigate this impact. A mortgage underweight in the fourth quarter detracted from returns as lower volatility caused this area of the market to perform well.

High yield bonds, also known as “junk bonds,” are subject to greater credit and market liquidity risks, which may result in greater share price volatility.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance date quoted. Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Prudential U.S. Emerging Growth Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC

Favorable economic data continues to point to a firm recovery and we continue to have a meaningful portion of the Portfolio’s assets in technology stocks with the inherent leverage to benefit from revenue growth. However, given the exceptional performance of the sector in 2003, we think it may be prudent at this point to diversify some of our assets into other areas where the risk/reward profile is more compelling. Furthermore, we continue to look for drivers of excess performance by seeking fundamentally strong but lesser-known names whose growth may be underappreciated or undiscovered by the market.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Prudential U.S. Emerging Growth Portfolio: Class I	15.25	%	42.09	%	-7.42	%	-11.69	%
SP Prudential U.S. Emerging Growth Portfolio: Class II	14.83	%	41.51	%	N/A		-5.44	%
S&P MidCap 400 Index²	20.64	%	35.62	%	4.84	%	3.21	%
Russell Midcap Growth Index²	20.19	%	42.71	%	-6.13	%	-13.04	%
Lipper (VIP) Mid-Cap Growth Funds Average²	17.13	%	36.14	%	-10.25	%	-15.22	%

SP Prudential U.S. Emerging Growth Portfolio Class I inception date: 9/22/2000. SP Prudential U.S. Emerging Growth Portfolio Class II inception date: 7/9/2001. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP Prudential U.S. Emerging Growth Portfolio (Class I) returned 42.09% in 2003, while the S&P MidCap 400 Index rose 35.62%, the Russell Midcap Growth Index rose 42.71%, and the Lipper (VIP) Mid-Cap Growth Funds Average was 36.14%.

n	PERFORMANCE REVIEW

The Portfolio produced impressive absolute and relative gains over the past 12 months, outperforming its Lipper peer group by a sizable margin. This favorable outcome was largely due to disciplined adherence to our style despite difficult conditions in 2002. Generally speaking, the Portfolio follows a two-pronged approach in our quest for growth: 1) Secular growth companies that are relatively immune to broader economic conditions and 2) Innovative businesses with cutting-edge products or unique business models that can capitalize on important shifts in consumer behavior. This strategy yielded unimpressive results in 2002 where a highly risk-averse market environment refused to differentiate fundamentally. Earnings multiples were generally compressed across the board. This austere environment showed signs of easing in the first few months of our fiscal year but turned around dramatically with the resolution of major combat in Iraq. As market sentiment returned to more “normalized” levels, investors were once again willing to be discerning, and companies with solid growth prospects, sound balance sheets, and compelling products/services outperformed. Among our top performers, companies with innovative business models dominated the list, with Monster Worldwide contributing the most gains by far. Monster’s online job search model has made recruiting cheaper and more efficient than the traditional newspaper channels, allowing the company to capture an increasing share of the total help-wanted market. Electronic bill payment processor and services provider CheckFree also helped performance, as consumers increasingly embrace paying bills online. On the other hand, our holding in Circuit City yielded less than favorable results as competition among the retailers was keener than we had expected. We have since exited from the position.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

^**

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Small/Mid Cap Value Portfolio

n	MANAGED BY: FIDELITY MANAGEMENT AND RESEARCH COMPANY (FMR)

On January 20, 2004, management of the Portfolio was assumed by Goldman Sachs Asset Management, L.P. The Portfolio’s name was changed, accordingly, to SP Goldman Sachs Small Cap Value Portfolio. It will invest primarily in small-cap stocks.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Small/Mid Cap Value Portfolio	22.20	%	33.11	%	5.53	%	8.55	%
Russell 2500 Index²	24.45	%	45.51	%	6.58	%	4.85	%
Russell 2500 Value Index²	25.48	%	44.93	%	12.75	%	14.59	%
Lipper (VIP) Small-Cap Value Funds Average²	25.62	%	44.49	%	13.24	%	13.70	%
Lipper (VIP) Mid-Cap Value Funds Average²	21.72	%	35.83	%	8.47	%	10.57	%

SP Small/Mid Cap Value Portfolio inception date: 9/22/2000. Although Lipper classifies the Portfolio in the Mid-Cap Value Funds Average, the returns for the Small-Cap Value Funds Average is also shown because the management of the portfolios in the Small-Cap Value Funds Average is more consistent with the management of the Portfolio. A portion of the expenses of the Portfolio was subsidized. Absent such expense absorption, the performance quoted would be lower.

LOGO

The SP Small/Mid Cap Value Portfolio returned 33.11% in 2003, while the Russell 2500 Index rose 45.51%, the Russell 2500 Value Index increased 44.93%, the Lipper (VIP) Mid-Cap Value Funds Average rose 35.83%, and the Lipper (VIP) Small-Cap Value Funds Average gained 44.49%.

n	PERFORMANCE REVIEW

The year 2003 marked the best performance for the small-cap Russell 2000 Index since its inception in the late 1970s. (The Russell 2500 Index has a much shorter history.) Continuing signs of strength in the U.S. economy, increased corporate profits, a diminishing likelihood that any war in Iraq would be prolonged, and high levels of fiscal and monetary stimulus combined to cause investors to seek out more speculative stocks.

During this period, the Portfolio had positive returns, but trailed its benchmark, the Russell 2500 Value Index. Detracting from its relative performance was security selection in the information technology sector, especially the technology hardware and equipment group and in the healthcare sector. The Portfolio benefited from good stock selection in the energy sector. It also received some contribution to return from underweighting utilities and consumer staples.

Small and midsize companies may have limited marketability and may be subject to more erratic or abrupt market movements than large-cap stocks.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For	a complete list of holdings, refer to the Schedule I of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

SP Strategic Partners Focused Growth Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC; and ALLIANCE CAPITAL

Approximately half of the Portfolio’s assets are managed by Jennison Associates and half by AllianceBernstein.

Jennison Associates: While we believe that the rapid pace of growth in the past two quarters will not likely be repeated, the fundamental drivers for healthy economic activity should remain in place reinforcing our positive economic outlook and optimistic perspective for equities in 2004.

Alliance Bernstein: We expect the second installment of last year’s tax cut, which comes early in the year, to reinforce the market’s positive tone. The U.S. consumer sector will remain robust, and the health of the U.S. corporate sector looks to be steadily improving as well.

n	PERFORMANCE SUMMARY^*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
SP Strategic Partners Focused Growth Portfolio: Class I	15.30	%	25.84	%	-7.30	%	-13.01	%
SP Strategic Partners Focused Growth Portfolio: Class II	15.07	%	25.45	%	N/A		-9.65	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-6.13	%
Russell 1000 Growth Index²	14.73	%	29.75	%	-9.36	%	-15.18	%
Lipper (VIP) Large-Cap Growth Funds Average²	13.63	%	28.37	%	-10.44	%	-14.61	%

SP Strategic Partners Focused Growth Portfolio Class I inception date: 9/22/2000. SP Strategic Partners Focused Growth Portfolio Class II inception date: 1/12/2001. A portion of the expenses of the Portfolio is subsidized. Absent such expense absorption, the performance quoted would be lower. Expense absorption may be discontinued at any time.

LOGO

The SP Strategic Partners Focused Growth Portfolio (Class I) gained 25.84% in 2003, while the S&P 500 Index rose 28.67%, the Russell 1000 Growth Index rose 29.75%, and the Lipper (VIP) Large-Cap Growth Funds Average was 28.37%.

n	PERFORMANCE REVIEW

Jennison Associates: Technology stocks contributed significantly to the return of our holdings, led by our emphasis on semiconductor and semiconductor equipment stocks, including Intel, Texas Instruments, and Applied Materials. So far, earnings growth for many of our holdings in this area are primarily a result of cost cutting. We believe that as revenue growth accelerates, these companies should demonstrate impressive operating leverage leading to upward earnings revisions and positive earnings surprises. Healthcare stocks also contributed to our holdings’ absolute returns. Biotechnology position such as Amgen and Genentech advanced on the back of a stream of encouraging product developments. Our financial performed well, led by capital markets stocks such as Merrill Lynch. Among our consumer-related positions, Starbucks and Tiffany & Co. advanced. Holdings such as Harley-Davidson and Kohl’s offset these returns.

Alliance Bernstein: Gains on technology stocks such as Cisco, Dell, Microsoft, and Taiwan Semiconductor contributed to the Portfolio’s return in 2003. Strong performance, particularly from American International Group, Citigroup, MBNA, Fannie Mae, and Goldman Sachs drove returns in the financials sector. However, relative performance was hurt by our stock selection in the healthcare and consumer staples sectors. Moreover, the benefit of overweighting utilities, which was among the strongest-performing sectors, was offset by unfavorable stock selection. In technology, our high-quality growth stocks did not keep up with the surge of lower-quality stocks with high earnings variability.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average. For a complete list of holdings, refer to the Schedule of Investments section of this report.`


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Stock Index Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

The Portfolio consists primarily of the 500 stocks that comprise the Standard & Poor’s S&P 500 Index in approximately the same proportions they represent in the Index. The Portfolio aims to replicate the performance of the Standard & Poor’s 500 Index, and tends to reflect the general trends of the overall U.S. equity market.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Stock Index Portfolio	14.88	%	28.18	%	-4.28	%	-0.77	%	10.78	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-0.57	%	11.06	%
Lipper (VIP) S&P 500 Index Funds Average²	14.80	%	28.01	%	-4.44	%	-0.93	%	10.69	%

Stock Index Portfolio inception date: 10/19/1987.

LOGO

The Stock Index Portfolio returned 28.18% in 2003, while the S&P 500 Index rose 28.67%, and the Lipper (VIP) S&P 500 Index Funds Average rose 28.01%.

n	PERFORMANCE REVIEW

The S&P 500 Index rebounded substantially in 2003 after three years of large declines. Market strength was broad, with every sector rising. For the most part, the highest returns were in the sectors that were most sensitive to economic recovery: information technology (Internet-related and semiconductor companies), consumer discretionary (homebuilders), and materials (gold, aluminum, and steel). The industrial (construction and farm machinery and industrial conglomerates) and financial sectors also returned more than 25% over the year.

The market leaders included stocks that were rebounding from steep prior sell-offs. These included Dynegy and Williams Companies in the energy industry, technology firms such as Avaya and PMC-Sierra, and metals companies such as U.S. Steel. As earnings began to recover in 2003, price-to-earnings multiples rose sharply, particularly in technology. Commerce Department statistics showed that business spending on software and high-tech equipment accelerated. In addition, some Internet companies, including Yahoo! and eBay, appeared to be thriving. In telecommunications, wireless service providers and equipment firms performed well.

The largest drags on the S&P 500 Index were a few large drug companies (Merck and Schering-Plough) and integrated and long-distance telephone companies.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Value Portfolio

n	MANAGED BY: JENNISON ASSOCIATES LLC

We have become more optimistic about corporate earnings. We expect lower short-term interest rates, a weaker dollar, faster growth of the money supply, higher fiscal spending, and tax cuts to bring about brighter economic conditions, and we are positioned to benefit. We continue to be overweighted in industrials and in basic industries, as well as in energy stocks that are particularly responsive to commodity prices, such as oil services. However, the Portfolio’s net balance is neither more nor less exposed to economic growth than our value universe overall, although somewhat more so than the S&P 500 Index.

n	PERFORMANCE SUMMARY*


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year/ Since Inception
Value Portfolio: Class I	15.77	%	28.07	%	-0.72	%	4.94	%	9.82	%
Value Portfolio: Class II	15.60	%	27.63	%	N/A		N/A		-2.01	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-0.57	%	11.06	%
Russell 1000 Value Index²	16.55	%	30.03	%	1.22	%	3.56	%	11.88	%
Lipper (VIP) Large-Cap Value Funds Average²	16.14	%	28.50	%	-0.91	%	2.55	%	9.74	%

Value Portfolio Class I inception date: 2/19/1988. Value Portfolio Class II inception date: 5/14/2001.

LOGO

The Value Portfolio (Class I) returned 28.07% in 2003, while the Russell 1000 Value Index gained 30.03%, and the Lipper (VIP) Large-Cap Value Funds Average gained 28.50%.

n	PERFORMANCE REVIEW

The Portfolio’s absolute return was far above the historical mean for equities. We spent much of the year waiting for earnings catalysts, believing that the economic recovery could not rely on continued high consumer spending levels and record housing starts. We maintained our flexibility and took advantage of shifts in market sentiment when we thought they presented profit opportunities. Many technology stocks had presented such opportunities late in 2002. During 2003 we took profits on some of those holdings, including EMC and Cisco. In addition, many of the Portfolio’s core technology holdings performed extremely well. One was Agere Systems, a communications chip maker that narrowed its losses in the second quarter through continued cost cutting and the sale of its optoelectronics business. Among consumer discretionary positions, Echostar performed particularly well as investors reacted favorably to the termination of its proposed acquisitions of Hughes Electronics. Echostar’s satellite network continues to add new subscribers at a robust pace, and has enticed viewers away from cable. Citigroup was one of the Portfolio’s top performers. Its latest profit report beat expectations on the strength of its mortgage lending, credit card business, and bond underwriting. Strong equity and fixed income markets since March provided a favorable backdrop for the brokerage firms. Lehman Brothers and Merrill Lynch performed extremely well for us.

However, the weak performance of some of our healthcare stocks hurt. HCA, an international hospital management company, preannounced a negative earnings surprise. After it proposed a large share repurchase, we took advantage of a rebound in its stock price to eliminate our position. We didn’t like the fact that the repurchase was to be funded by debt. Baxter International, a diversified biotechnology company, fell when it reduced its sales and earnings targets because prices for its plasma protein product fell.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Zero Coupon Bond Portfolio 2005

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.

Should solid economic growth and low inflation continue in the United States during the first half of 2004, we believe the Federal Reserve (the Fed) may be reluctant to increase short-term interest rates. However, with the target for the interbank overnight lending rate at 1%, we believe an increase in short-term rates is inevitable at some point. That said, any adjustment to monetary policy will likely occur gradually.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		5-Year		10-Year
Zero Coupon Bond Portfolio 2005	-0.26	%	1.90	%	6.74	%	5.47	%	6.76	%
Lehman Brothers Govt Bond Index²	-1.23	%	2.36	%	6.96	%	6.26	%	6.72	%
Lipper (VIP) Target Maturity Funds Average²	-1.98	%	2.50	%	7.94	%	5.95	%	7.27	%

Zero Coupon Bond Portfolio 2005 inception date: 5/1/1989.

LOGO

The Zero Coupon Bond Portfolio 2005 returned 1.90% in 2003, while the Lehman Brothers Government Bond Index rose 2.36% and the Lipper (VIP) Target Maturity Funds Average gained 2.50%. The Portfolio underperformed because its anticipated liquidation date of November 15, 2005 prevented us from investing in slightly longer-term bonds that performed better than short-term debt securities.

n	PERFORMANCE REVIEW

A rally in U.S. Treasurys and other high-grade bonds during much of the first half of 2003 quickly turned into a sharp sell-off in late June. The sell-off reflected disappointment that the Fed only cut short-term interest rates by a quarter of a percentage point in late June in an effort to stimulate the sluggish economy. Some investors had expected the Fed to reduce short-term rates by a half percentage point. There was also speculation in the financial markets that the Fed might resort to buying long-term bonds to exert downward pressure on rates. However, such extraordinary measures proved to be unnecessary. The economy began to grow rapidly in the summer.

Treasuries and federal agency securities sold off for much of the second half of 2003 amid concern that the brisk economic growth might eventually lead to higher inflation and rising interest rates in 2004. This expectation was reflected in the steep slope of the yield curve, which shows the relationship between bonds ranging from the shortest to the longest maturity dates. When the yield curve is steep, short-term rates are lower than longer-term rates. This enabled traders to borrow money at low short-term rates and profitably reinvest it in slightly longer-term bonds with higher rates.

We believe the Portfolio underperformed its Lipper Average because its anticipated liquidation date of November 15, 2005 prevented us from investing in the better-performing, slightly longer-term bonds purchased by some of the funds in our peer group. Nevertheless, the Portfolio still benefited from emphasizing zero coupon bonds of federal agencies rather than Treasuries. Federal agency zero coupon bonds performed better than Treasuries due to considerable demand for bonds that provided higher yields than Treasuries.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.

GLOSSARY OF BENCHMARK DEFINITIONS

Aggressive Growth Asset Allocation Custom Blended Index consists of Russell 1000 Growth Index (17.5%), Russell 1000 Value Index (17.5%), Russell Midcap Growth Index (17.5%), Russell 2500 Value Index (17.5%), and MSCI EAFE Index (30%).

Balanced Asset Allocation Custom Blended Index consists of Russell 1000 Growth Index (17.5%), Russell 1000 Value Index (17.5%), Russell Midcap Growth Index (7.5%), Russell 2500 Value Index (7.5%), MSCI EAFE Index (10%), Merrill Lynch U.S. High Yield Master II BB-B Rated Index (10%), and Lehman Brothers Aggregate Bond Index (30%).

Conservative Asset Allocation Custom Blended Index consists of Russell 1000 Growth Index (15%), Russell 1000 Value Index (15%), Russell Midcap Growth Index (2.5%), Russell 2500 Value Index (2.5%), Merrill Lynch U.S. High Yield Master II BB-B Rated Index (10%), and Lehman Brothers Aggregate Bond Index (55%).

Conservative Balanced Custom Blended Index consists of a blend of the S&P 500 Index (50%), the Lehman Brothers Aggregate Bond Index (40%), and the 3-Month T-Bill (10%).

Diversified Conservative Growth Custom Blended Index consists of S&P 500 Barra Value Index (15%), S&P 500 Barra Growth Index (15%), Russell 2000 Value Index (5%), Russell 1000 Growth Index (5%), Lehman Brothers Aggregate Bond Index (40%), and Lehman Brothers High Yield Bond Index (20%).

Flexible Managed Custom Blended Index consists of a blend of the S&P 500 Index (60%), the Lehman Brothers Aggregate Bond Index (35%), and the 3-Month T-Bill (5%).

Growth Asset Allocation Custom Blended Index consists of Russell 1000 Growth Index (17.5%), Russell 1000 Value Index (17.5%), Russell Midcap Growth Index (12.5%), Russell 2500 Value Index (12.5%), MSCI EAFE Index (20%), Merrill Lynch U.S. High Yield Master II BB-B Rated Index (7.5%), and Lehman Brothers Aggregate Bond Index (12.5%).

Lehman Brothers Aggregate Bond Index is an unmanaged index comprised of more than 5,000 government and corporate bonds.

Lehman Brothers Corporate High Yield Bond Index is an unmanaged index comprised of more than 700 non-investment-grade bonds.

Lehman Brothers Government Bond Index is an unmanaged index comprised of securities issued or backed by the U.S. government, its agencies, and instrumentalities with a remaining maturity of 1 to 30 years.

Lehman Brothers Intermediate BB Corporate Bond Index is an unmanaged index comprised of various fixed income securities rated BB.

The Lipper Variable Insurance Products (VIP) Funds Averages are calculated by Lipper Analytical Services, Inc., and reflect the investment return of certain portfolios underlying variable life and annuity products. These returns are net of investment fees and fund expenses, but not product charges.


Balanced Funds Average	International Funds Average	Multi-Cap Value Funds Average
Corporate Debt Funds BBB-Rated Average	Large-Cap Core Funds Average	Natural Resources Funds Average
Flexible Portfolio Funds Average	Large-Cap Growth Funds Average	S&P 500 Index Funds Average
General U.S. Government Funds Average	Large-Cap Value Funds Average	Small-Cap Core Funds Average
Global Funds Average	Mid-Cap Growth Funds Average	Small-Cap Growth Funds Average
High Current Yield Funds Average	Mid-Cap Value Funds Average	Small-Cap Value Funds Average
Income Funds Average	Money Market Funds Average	Specialty/Miscellaneous Funds Average
Intermediate Investment-Grade Debt Funds Average	Multi-Cap Core Funds Average	Target Maturity Funds Average

Merrill Lynch U.S. High Yield Master II BB-B Rated Index is a broad high yield index including high yield bonds across the maturity spectrum, within the BB-B rated credit quality spectrum, included in the below-investment-grade universe.

Morgan Stanley Capital International Europe, Australasia, and the Far East (MSCI EAFE) Index is a weighted, unmanaged index that reflects stock performance in Europe, Australasia, and the Far East.

Morgan Stanley Capital International (MSCI) World Index is an unmanaged index comprised of approximately 1,500 companies listed on the stock exchanges of Australasia, Canada, Europe, the Far East, and the United States.

Russell 1000 Growth Index is a market cap-weighted index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 Index is a market cap-weighted index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market.

Russell 1000 Value Index is a market cap-weighted index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000 Growth Index is a market cap-weighted index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.

Russell 2500 Growth Index is a market cap-weighted index that measures the performance of those Russell 2500^TM companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2500 Index is a market cap-weighted index that measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index.

Russell 2500 Value Index is a market cap-weighted index that measures the performance of those Russell 2500^TM companies with lower price-to-book ratios and lower forecasted growth values.

Russell Midcap Growth Index is a market cap-weighted index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.

Russell Midcap Index is a market cap-weighted index that measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market.

S&P 500 Index is an unmanaged, market value-weighted index of 500 stocks generally representative of the broad stock market.

S&P MidCap 400 Index is a widely accepted, unmanaged total return index of 400 domestic stocks measuring the performance of the midsize company segment of the U.S. stock market.

S&P SmallCap 600 Index is an unmanaged index representing the aggregate market value of the common equity of 600 small-company stocks.

S&P SuperComposite 1500 Information Technology Index measures the performance of the technology components of the S&P SuperComposite 1500, which is a combination of the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes, and provides a broad representation of the entire U.S. market, representing 87% of total U.S. equity market capitalization.

This page may include certain benchmarks not applicable to the portfolios available in this particular report. Investors cannot invest directly in a market index or average.




		*CONSERVATIVE BALANCED PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $582,405,921 (cost $3,823,912,017)	$	3,808,581,927
Dividends and interest receivable		10,129,472
Receivable for investments sold		2,002,394
Receivable for capital stock sold		120,274
Tax Reclaim receivable		8,426
Prepaid expenses		29,873

Total assets		3,820,872,366

LIABILITIES
Collateral for securities on loan		603,409,940
Payable for investments purchased		320,149,548
Management fee payable		1,330,056
Payable for capital stock repurchased		614,979
Accrued expenses and other liabilities		340,023
Due to broker—variation margin		55,050
Payable to custodian		1,262

Total liabilities		925,900,858

NET ASSETS	$	2,894,971,508

Net assets were comprised of:
Common stock, at $0.01 par value	$	2,018,957
Paid-in capital in excess of par		2,836,431,887

		2,838,450,844
Undistributed net investment income		55,941,153
Accumulated net realized gain on investments		9,233,212
Net unrealized depreciation on investments		(8,653,701	)

Net assets, December 31, 2003	$	2,894,971,508

Net asset value and redemption price per share, $2,894,971,508 / 201,895,682 outstanding shares of common stock (authorized 740,000,000 shares)	$	14.34

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	37,526,729
Dividends		31,608,687
Income from securities lending, net		1,299,884

		70,435,300

EXPENSES
Management fee		14,928,039
Custodian’s fees and expenses		408,000
Audit fee		76,000
Insurance expenses		48,000
Directors’ fees		46,000
Commitment fee on syndicated credit agreement		43,000
Shareholders’ reports		35,000
Legal fees and expenses		20,000
Transfer agent’s fees and expenses		2,100
Miscellaneous		5,796

Total expenses		15,611,935
Less: custodian fee credit		(6,316	)

Net expenses		15,605,619

NET INVESTMENT INCOME		54,829,681

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		28,910,594
Futures		48,254,536

		77,165,130

Net change in unrealized appreciation (depreciation) on:
Investments		316,950,594
Futures		20,576,158

		337,526,752

NET GAIN ON INVESTMENTS		414,691,882

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	469,521,563

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	54,829,681		$	73,465,326
Net realized gain (loss) on investments		77,165,130			(60,437,829	)
Net change in unrealized appreciation (depreciation) on investments		337,526,752			(299,285,750	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		469,521,563			(286,258,253	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(73,725,917	)		—
Distributions from net realized capital gains		—			(8,002,898	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(73,725,917	)		(8,002,898	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,313,419 and 6,943,283 shares, respectively]		43,720,032			91,446,170
Capital stock issued in reinvestment of dividends and distributions [6,123,415 and 588,881 shares, respectively]		73,725,917			8,002,898
Capital stock repurchased [21,565,238 and 31,614,428 shares, respectively]		(278,564,074	)		(404,569,296	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(161,118,125	)		(305,120,228	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		234,677,521			(599,381,379	)
NET ASSETS:
Beginning of year		2,660,293,987			3,259,675,366

End of year (a)	$	2,894,971,508		$	2,660,293,987

(a) Includes undistributed net investment income of:	$	55,941,153		$	73,725,917

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $157,018,281 (cost $1,913,710,503)	$	1,957,217,854
Foreign currency, at value (cost $48)		61
Interest receivable		13,828,930
Receivable for investments sold		10,067,807
Unrealized appreciation on forward foreign currency contracts		239,371
Receivable for capital stock sold		85,331
Due from broker—variation margin		46,614
Prepaid expenses		15,452

Total assets		1,981,501,420

LIABILITIES
Payable for investments purchased		398,446,364
Collateral for securities on loan		162,986,302
Unrealized depreciation on forward foreign currency contracts		969,838
Management fee payable		484,958
Payable for capital stock repurchased		381,127
Accrued expenses and other liabilities		243,215
Deferred directors’ fees		8,685
Payable to custodian		5,114

Total liabilities		563,525,603

NET ASSETS	$	1,417,975,817

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,269,203
Paid-in capital in excess of par		1,387,833,536

		1,389,102,739
Undistributed net investment income		180,286
Accumulated net realized loss on investments		(13,837,873	)
Net unrealized appreciation on investments and foreign currencies		42,530,665

Net assets, December 31, 2003	$	1,417,975,817

Net asset value and redemption price per share, $1,417,975,817 / 126,920,332 outstanding shares of common stock (authorized 340,000,000 shares)	$	11.17

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest (net of $2,553 foreign withholding tax)	$	58,368,891
Dividends		4,423,759
Income from securities lending, net		266,172

		63,058,822

EXPENSES
Management fees		5,649,956
Custodian’s fees and expenses		250,000
Shareholders’ reports		212,000
Audit fee		39,000
Directors’ fees		28,000
Insurance expenses		24,000
Commitment fee on syndicated credit agreement		22,000
Legal fees and expenses		15,000
Transfer agent’s fees and expenses		2,700
Miscellaneous		5,857

Total expenses		6,248,513
Less: custodian fee credit		(13,507	)

Net expenses		6,235,006

NET INVESTMENT INCOME		56,823,816

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		39,855,396
Futures		161,118
Foreign currencies		(6,180,774	)
Short sales		153,786

		33,989,526

Net change in unrealized appreciation (depreciation) on:
Investments		13,204,831
Futures		(491,017	)
Foreign currencies		(174,518	)

		12,539,296

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		46,528,822

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	103,352,638

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	56,823,816		$	74,301,622
Net realized gain (loss) on investments and foreign currencies		33,989,526			(1,678,323	)
Net change in unrealized appreciation on investments and foreign currencies		12,539,296			23,226,659

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		103,352,638			95,849,958

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(57,232,060	)		(159,965,745	)
Tax Return of Capital		—			(1,784,789	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(57,232,060	)		(161,750,534	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [18,720,228 and 17,549,865 shares, respectively]		205,756,877			189,983,072
Capital stock issued in reinvestment of dividends and distributions [5,149,986 and 15,159,311 shares, respectively]		57,232,060			161,750,534
Capital stock repurchased [23,581,158 and 29,401,035 shares, respectively]		(261,397,152	)		(316,229,673	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		1,591,785			35,503,933

TOTAL INCREASE (DECREASE) IN NET ASSETS		47,712,363			(30,396,643	)
NET ASSETS:
Beginning of year		1,370,263,454			1,400,660,097

End of year (a)	$	1,417,975,817		$	1,370,263,454

(a) Includes undistributed net investment income of:	$	180,286

SEE NOTES TO FINANCIAL STATEMENTS.




		*EQUITY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $414,347,398 (cost $3,917,349,414)	$	4,446,545,034
Cash		2,525
Receivable for investments sold		20,590,410
Dividends and interest receivable		3,299,746
Receivable for capital stock sold		260,493
Tax reclaim receivable		188,986
Due from broker—variation margin		47,210
Prepaid expenses		38,696

Total assets		4,470,973,100

LIABILITIES
Collateral for securities on loan		437,748,240
Payable for investments purchased		17,277,420
Management fee payable		1,492,069
Payable for capital stock repurchased		832,659
Accrued expenses and other liabilities		471,475
Distribution fee payable		164
Administration fee payable		98

Total liabilities		457,822,125

NET ASSETS	$	4,013,150,975

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,952,426
Paid-in capital in excess of par		4,411,500,758

		4,413,453,184
Undistributed net investment income		277,872
Accumulated net realized loss on investments		(930,298,374	)
Net unrealized appreciation on investments and foreign currencies		529,718,293

Net assets, December 31, 2003	$	4,013,150,975

Class I:
Net asset value and redemption price per share, $4,012,328,159 / 195,202,633 outstanding shares of common stock (authorized 590,000,000 shares)	$	20.55

Class II:
Net asset value and redemption price per share, $822,816 / 39,987 outstanding shares of common stock (authorized 10,000,000 shares)	$	20.58

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $892,454 foreign withholding tax)	$	50,239,134
Interest		181,279
Income from securities loaned, net		412,169

		50,832,582

EXPENSES
Management fee		15,723,338
Distribution fee—Class II		1,309
Administration fee—Class II		785
Shareholders’ reports		754,000
Custodian’s fees and expenses		360,000
Audit fee		102,000
Insurance expenses		63,000
Commitment fee on syndicated credit agreement		55,000
Directors’ fees		55,000
Legal fees and expenses		29,000
Transfer agent’s fees and expenses		5,200
Miscellaneous		13,351

Total operating expenses		17,161,983
Loan interest expense (Note 8)		904
Less: custodian fee credit		(808	)

Net expenses		17,162,079

NET INVESTMENT INCOME		33,670,503

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments transactions		(187,753,624	)
Options written		29,448
Futures transactions		3,946,758
Foreign currencies transactions		(109,347	)

		(183,886,765	)

Net change in unrealized appreciation (depreciation) on:
Investments		1,131,026,681
Futures		864,975
Foreign currencies		5,456

		1,131,897,112

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		948,010,347

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	981,680,850

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	33,670,503		$	34,525,958
Net realized loss on investments and foreign currencies		(183,886,765	)		(527,040,808	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		1,131,897,112			(513,826,957	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		981,680,850			(1,006,341,807	)

DIVIDENDS:
Dividends from net investment income
Class I		(34,653,868	)		(34,102,714	)
Class II		(3,532	)		(2,409	)

TOTAL DIVIDENDS		(34,657,400	)		(34,105,123	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [5,749,045 and 9,073,815 shares, respectively]		101,063,434			172,748,546
Capital stock issued in reinvestment of dividends [1,744,973 and 2,132,982 shares, respectively]		34,657,400			34,105,123
Capital stock repurchased [20,110,903 and 28,711,197 shares, respectively]		(343,584,774	)		(509,334,621	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(207,863,940	)		(302,480,952	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		739,159,510			(1,342,927,882	)
NET ASSETS:
Beginning of year		3,273,991,465			4,616,919,347

End of year (a)	$	4,013,150,975		$	3,273,991,465

(a) Includes undistributed net investment income of:	$	277,872		$	1,374,116

SEE NOTES TO FINANCIAL STATEMENTS.




		*FLEXIBLE MANAGED PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $715,225,407 (cost $4,370,220,520)	$	4,660,568,975
Dividends and interest receivable		11,210,722
Receivable for investments sold		4,521,271
Receivable for capital stock sold		277,574
Prepaid expenses		36,834
Tax reclaim receivable		26,990

Total assets		4,676,642,366

LIABILITIES
Collateral for securities on loan		740,622,610
Payable for investments purchased		239,471,965
Management fee payable		1,843,777
Accrued expenses and other liabilities		628,611
Payable for capital stock repurchased		348,960
Due to broker-variation margin		142,319
Payable to custodian		7,642

Total liabilities		983,065,884

NET ASSETS	$	3,693,576,482

Net assets were comprised of:
Common stock, at $0.01 par value	$	2,432,183
Paid-in capital in excess of par		3,771,671,443

		3,774,103,626
Undistributed net investment income		52,897,055
Accumulated net realized loss on investments		(435,518,358	)
Net unrealized appreciation on investments		302,094,159

Net assets, December 31, 2003	$	3,693,576,482

Net asset value and redemption price per share, $3,693,576,482 / 243,218,312 outstanding shares of common stock (authorized 740,000,000 shares)	$	15.19

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest (net of $221 foreign withholding tax)	$	29,297,170
Dividends (net of $501 foreign withholding tax)		42,452,683
Income from securities loaned, net		1,018,994

		72,768,847

EXPENSES
Management fee		20,078,030
Custodian’s fees and expenses		415,000
Audit fee		85,000
Insurance expenses		58,000
Directors’ fees		50,000
Legal fees and expenses		31,000
Commitment fee on syndicated credit agreement		25,000
Transfer agent’s fees and expenses		2,200
Miscellaneous		8,779

Total expenses		20,753,009
Less: custodian fee credit		(8,481	)

Net expenses		20,744,528

NET INVESTMENT INCOME		52,024,319

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments		(33,905,282	)
Futures		73,424,055

		39,518,773

Net change in unrealized appreciation on:
Investments		600,662,186
Futures		29,038,584

		629,700,770

NET GAIN ON INVESTMENTS		669,219,543

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	721,243,862

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	52,024,319		$	68,040,906
Net realized gain (loss) on investments		39,518,773			(268,540,312	)
Net change in unrealized appreciation (depreciation) on investments		629,700,770			(288,661,821	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		721,243,862			(489,161,227	)

DIVIDENDS:
Dividends from net investment income		(68,283,392	)		(106,760,860	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,981,685 and 7,479,921 shares, respectively]		54,389,704			104,900,934
Capital stock issued in reinvestment of dividends and distributions [5,574,154 and 7,434,600 shares, respectively]		68,283,392			106,760,860
Capital stock repurchased [19,797,358 and 24,899,579 shares, respectively]		(263,069,457	)		(331,331,843	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(140,396,361	)		(119,670,049	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		512,564,109			(715,592,136	)
NET ASSETS:
Beginning of year		3,181,012,373			3,896,604,509

End of year (a)	$	3,693,576,482		$	3,181,012,373

(a) Includes undistributed net investment income of:	$	52,897,055		$	68,283,392

SEE NOTES TO FINANCIAL STATEMENTS.




		*GLOBAL PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $132,760,909 (cost $687,832,028)	$	783,198,478
Foreign currency, at value (cost $11,481,802)		11,639,591
Receivable for investments sold		14,471,078
Dividends receivable		426,802
Foreign tax reclaim receivable		163,987
Receivable for capital stock sold		138,353
Prepaid expenses		6,209
Unrealized appreciation on forward foreign currency contracts		3,487

Total assets		810,047,985

LIABILITIES
Collateral for securities on loan		139,928,992
Payable for capital stock repurchased		2,347,091
Payable for investments purchased		1,468,102
Management fee payable		411,725
Accrued expenses and other liabilities		209,799
Unrealized depreciation on forward foreign currency contracts		51,914

Total liabilities		144,417,623

NET ASSETS	$	665,630,362

Net assets were comprised of:
Common stock, at $0.01 par value	$	439,578
Paid-in capital in excess of par		836,913,043

		837,352,621
Undistributed net investment income		6,551,798
Accumulated net realized loss on investments		(273,816,814	)
Net unrealized appreciation on investments and foreign currencies		95,542,757

Net assets, December 31, 2003	$	665,630,362

Net asset value and redemption price per share, $665,630,362 / 43,957,835 outstanding shares of common stock (authorized 140,000,000 shares)	$	15.14

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $809,625 foreign withholding tax)	$	9,153,908
Interest		20,269
Income from securities loaned, net		258,514

		9,432,691

EXPENSES
Management fee		4,273,255
Custodian’s fees and expenses		405,000
Shareholders’ reports		226,000
Audit fee		16,600
Directors’ fees		15,000
Legal fees and expenses		12,000
Insurance expenses		10,000
Commitment fee on syndicated credit agreement		8,500
Transfer agent’s fees and expenses		5,000
Miscellaneous		8,916

Total operating expenses		4,980,271
Loan interest expense (Note 8)		102
Less: custodian fee credit		(760	)

Net expenses		4,979,613

NET INVESTMENT INCOME		4,453,078

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		9,562,699
Options written		3,630
Foreign currencies		2,098,668

		11,664,997

Net change in unrealized appreciation (depreciation) on:
Investments		154,678,358
Foreign currencies		(630,180	)

		154,048,178

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		165,713,175

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	170,166,253

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,453,078		$	3,125,853
Net realized gain (loss) on investments and foreign currencies		11,664,997			(148,665,932	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		154,048,178			(42,355,528	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		170,166,253			(187,895,607	)

DIVIDENDS:
Dividends from net investment income		(2,077,796	)		(7,749,158	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [17,778,589 and 23,258,154 shares, respectively]		225,317,636			299,046,535
Capital stock issued in reinvestment of dividends [184,202 and 531,857 shares, respectively]		2,077,796			7,749,158
Capital stock repurchased [19,392,533 and 36,298,511 shares, respectively]		(244,784,313	)		(481,242,136	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(17,388,881	)		(174,446,443	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		150,699,576			(370,091,208	)
NET ASSETS:
Beginning of year		514,930,786			885,021,994

End of year (a)	$	665,630,362		$	514,930,786

(a) Includes undistributed net investment income of:	$	6,551,798		$	2,077,848

SEE NOTES TO FINANCIAL STATEMENTS.




		*GOVERNMENT INCOME PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $91,572,964 (cost $603,977,832)	$	612,795,010
Dividends and interest receivable		8,556,785
Receivable for investments sold		4,182,333
Prepaid assets		5,469
Receivable for capital stock sold		2,643

Total assets		625,542,240

LIABILITIES
Collateral for securities on loan		94,616,694
Payable for investments purchased		64,675,920
Payable to custodian		4,047,770
Payable for capital stock repurchased		293,688
Due to broker—variation margin		159,702
Management fee payable		157,672
Accrued expenses and other liabilities		70,640
Deferred directors’ fees		3,752

Total liabilities		164,025,838

NET ASSETS	$	461,516,402

Net assets were comprised of:
Common stock, at $0.01 par value	$	387,187
Paid-in capital in excess of par		447,306,546

		447,693,733
Undistributed net investment income		1,641,908
Accumulated net realized gain on investments		4,372,134
Net unrealized appreciation on investments		7,808,627

Net assets, December 31, 2003	$	461,516,402

Net asset value and redemption price per share, $461,516,402 / 38,718,653 outstanding shares of common stock (authorized 130,000,000 shares)	$	11.92

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	19,458,936
Dividends		1,317,718
Income from securities loaned, net		157,928

		20,934,582

EXPENSES
Management fee		1,982,987
Custodian’s fees and expenses		152,000
Shareholders’ reports		85,000
Directors’ fees		18,000
Audit fee		15,000
Legal fees and expenses		12,000
Commitment fee on syndicated credit agreement		8,000
Insurance expenses		8,000
Transfer agent’s fees and expenses		1,400
Miscellaneous		3,898

Total expenses		2,286,285
Less: custodian fee credit		(3,264	)

Net expenses		2,283,021

NET INVESTMENT INCOME		18,651,561

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on:
Investments		6,510,922
Options written		570,952
Futures		511,374

		7,593,248

Net change in unrealized appreciation (depreciation) on:
Investments		(11,197,582	)
Futures		(3,000,940	)

		(14,198,522	)

NET LOSS ON INVESTMENTS		(6,605,274	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	12,046,287

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	18,651,561		$	18,620,636
Net realized gain on investments		7,593,248			18,082,591
Net change in unrealized appreciation (depreciation) on investments		(14,198,522	)		14,428,294

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		12,046,287			51,131,521

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(18,674,043	)		(35,910,173	)
Distributions from net realized capital gains		(17,308,742	)		(2,221,004	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(35,982,785	)		(38,131,177	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [5,718,477 and 26,153,275 shares, respectively]		70,040,168			316,194,256
Capital stock issued in reinvestment of dividends and distributions [2,987,413 and 3,188,329 shares, respectively]		35,982,785			38,131,177
Capital stock repurchased [8,715,550 and 15,983,126 shares, respectively]		(104,847,327	)		(194,057,645	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		1,175,626			160,267,788

TOTAL INCREASE (DECREASE) IN NET ASSETS		(22,760,872	)		173,268,132
NET ASSETS:
Beginning of year		484,277,274			311,009,142

End of year (a)	$	461,516,402		$	484,277,274

(a) Includes undistributed net investment income of:	$	1,641,908		$	529,516

SEE NOTES TO FINANCIAL STATEMENTS.




		*HIGH YIELD BOND PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $362,328,575 (cost $1,755,814,271)	$	1,817,060,516
Dividends and interest receivable		27,983,103
Receivable for investments sold		3,172,250
Receivable for capital stock sold		315,704
Prepaid expenses		13,946

Total assets		1,848,545,519

LIABILITIES
Collateral for securities on loan		377,052,545
Payable to custodian		3,708,105
Management fee payable		679,009
Payable for investments purchased		81,067
Payable for capital stock repurchased		205,190
Accrued expenses and other liabilities		126,835
Deferred director’s fee payable		5,580

Total liabilities		381,858,331

NET ASSETS	$	1,466,687,188

Net assets were comprised of:
Common stock, at $0.01 par value	$	2,772,078
Paid-in capital in excess of par		1,697,864,501

		1,700,636,579
Distributions in excess of net investment income		(872,898	)
Accumulated net realized loss on investments		(294,322,738	)
Net unrealized appreciation on investments		61,246,245

Net assets, December 31, 2003	$	1,466,687,188

Net asset value and redemption price per share, $1,466,687,188 / 277,207,828 outstanding shares of common stock (authorized 390,000,000 shares)	$	5.29

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	107,689,513
Dividends		3,818,102
Income from securities loaned, net		550,221

		112,057,836

EXPENSES
Management fee		7,095,408
Custodian’s fees and expenses		293,000
Shareholders’ reports		226,000
Audit fee		39,000
Directors’ fees		29,000
Commitment fee on syndicated credit agreement		21,000
Legal fees and expenses		20,000
Insurance expenses		18,000
Transfer agent’s fees and expenses		2,700
Miscellaneous		7,812

Total expenses		7,751,920
Less: custodian fee credit		(16,435	)

Net expenses		7,735,485

NET INVESTMENT INCOME		104,322,351

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investment transactions		6,321,957
Foreign currency transactions		(1,971	)

		6,319,986

Net change in unrealized appreciation (depreciation) on investments		179,026,505

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		185,346,491

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	289,668,842

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	104,322,351		$	86,259,823
Net realized gain (loss) on investments and foreign currencies		6,319,986			(88,210,526	)
Net change in unrealized appreciation (depreciation) on investments		179,026,505			20,001,592

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		289,668,842			18,050,889

DIVIDENDS:
Dividends from net investment income		(108,990,863	)		(158,619,952	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [36,334,558 and 118,545,049 shares, respectively]		183,598,701			585,030,412
Capital stock issued in reinvestment of dividends [21,686,510 and 33,077,604 shares, respectively]		108,990,863			158,619,952
Capital stock repurchased [26,825,205 and 27,038,135 shares, respectively]		(135,167,810	)		(130,303,535	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		157,421,754			613,346,829

TOTAL INCREASE IN NET ASSETS		338,099,733			472,777,766
NET ASSETS:
Beginning of year		1,128,587,455			655,809,689

End of year (a)	$	1,466,687,188		$	1,128,587,455

(a) Includes undistributed net investment income of:	$	—		$	2,017,478

SEE NOTES TO FINANCIAL STATEMENTS.




		*JENNISON PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $478,549,044 (cost $2,102,636,815)	$	2,356,640,173
Receivable for investments sold		14,233,472
Dividends and interest receivable		799,660
Receivable for capital stock sold		466,205
Tax reclaim receivable		105,511
Prepaid expenses		17,564

		2,372,262,585

LIABILITIES
Collateral for securities on loan		495,524,246
Payable for investments purchased		28,059,432
Management fee payable		916,164
Payable for capital stock repurchased		782,434
Accrued expenses		251,111
Distribution fee payable		15,352
Administration fee payable		9,211

		525,557,950

NET ASSETS	$	1,846,704,635

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,111,667
Paid-in capital in excess of par		2,790,560,999

		2,791,672,666
Undistributed net investment income		10,258
Accumulated net realized loss on investments		(1,198,990,021	)
Net unrealized appreciation on investments and foreign currencies		254,011,732

Net assets, December 31, 2003	$	1,846,704,635

Class I:
Net asset value and redemption price per share, $1,772,423,114 / 106,654,583 outstanding shares of common stock (authorized 240,000,000 shares)	$	16.62

Class II:
Net asset value and redemption price per share, $74,281,521 / 4,512,098 outstanding shares of common stock (authorized 20,000,000 shares)	$	16.46

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $409,917 foreign withholding tax)	$	14,390,039
Income from securities lending, net		269,538

		14,659,577

EXPENSES
Management fee		9,507,138
Distribution fee—Class II		148,306
Administration fee—Class II		88,984
Shareholders’ reports		280,000
Custodian’s fees and expenses		250,000
Audit fee		46,000
Directors’ fees		29,000
Insurance expenses		28,000
Legal fees and expenses		25,000
Commitment fee on syndicated credit agreement		22,000
Transfer agent’s fees and expenses		7,000
Miscellaneous		9,516

Total operating expenses		10,440,944
Loan interest expense (Note 8)		425
Less: custodian fee credit		(1,178	)

Net expenses		10,440,191

NET INVESTMENT INCOME		4,219,386

NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		(65,508,984	)
Options written		8,540
Foreign currencies		(148,385	)

		(65,648,829	)

Net change in unrealized appreciation on:
Investments		482,862,560
Foreign currencies		8,374

		482,870,934

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		417,222,105

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	421,441,491

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,219,386		$	3,593,063
Net realized loss on investments and foreign currencies		(65,648,829	)		(463,325,687	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		482,870,934			(224,401,947	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		421,441,491			(684,134,571	)

DIVIDENDS:
Dividends from net investment income
Class I		(4,049,114	)		(3,653,967	)
Class II		—			—

		(4,049,114	)		(3,653,967	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [16,084,536 and 32,932,385 shares, respectively]		232,921,690			527,421,601
Capital stock issued in reinvestment of dividends [248,870 and 275,676 shares, respectively]		4,049,114			3,653,967
Capital stock repurchased [17,502,721 and 41,877,345 shares, respectively]		(244,549,890	)		(652,831,245	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(7,579,086	)		(121,755,677	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		409,813,291			(809,544,215	)
NET ASSETS:
Beginning of year		1,436,891,344			2,246,435,559

End of year (a)	$	1,846,704,635		$	1,436,891,344

(a) Includes undistributed net investment income of:	$	10,258		$	—

SEE NOTES TO FINANCIAL STATEMENTS.




		*MONEY MARKET PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (amortized cost $931,002,383)	$	931,002,383
Cash		777
Receivable for capital stock sold		3,364,339
Interest receivable		1,551,718
Prepaid expenses		13,459

Total assets		935,932,676

LIABILITIES
Payable for capital stock repurchased		1,786,534
Management fee payable		320,405
Accrued expenses		174,998

Total liabilities		2,281,937

NET ASSETS	$	933,650,739

Net assets were comprised of:
Common stock, at $0.01 par value	$	933,651
Paid-in capital in excess of par		932,717,088

Net assets, December 31, 2003	$	933,650,739

Net asset value and redemption price per share, $933,650,739 / 93,365,074 outstanding shares of common stock (authorized 340,000,000 shares)	$	10.00

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	15,274,776

EXPENSES
Management fee		4,765,229
Shareholders’ reports		225,000
Custodian’s fees and expenses		122,000
Audit fee		36,000
Directors’ fees		24,000
Insurance expenses		21,000
Legal fees and expenses		14,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		4,233

Total expenses		5,216,962
Less: custodian fee credit		(522	)

Net expenses		5,216,440

NET INVESTMENT INCOME		10,058,336

NET REALIZED GAIN ON INVESTMENTS		5,631

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	10,063,967

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	10,058,336		$	19,256,001
Net realized gain on investments		5,631			17,151

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		10,063,967			19,273,152

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(10,058,336	)		(19,256,001	)
Distributions from net realized capital gains		(5,631	)		(17,151	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(10,063,967	)		(19,273,152	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [79,403,786 and 180,832,605 shares, respectively]		794,037,861			1,808,326,045
Capital stock issued in reinvestment of dividends and distributions [1,006,397 and 1,927,315 shares, respectively]		10,063,967			19,273,152
Capital stock repurchased [123,701,580 and 196,288,751 shares, respectively]		(1,237,015,795	)		(1,962,887,512	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(432,913,967	)		(135,288,315	)

TOTAL DECREASE IN NET ASSETS		(432,913,967	)		(135,288,315	)
NET ASSETS:
Beginning of year		1,366,564,706			1,501,853,021

End of year	$	933,650,739		$	1,366,564,706

SEE NOTES TO FINANCIAL STATEMENTS.




		*NATURAL RESOURCES PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $125,254,525 (cost $449,090,208)	$	630,916,248
Foreign currency, at value (cost $41,206)		41,206
Dividends and interest receivable		657,138
Tax reclaim receivable		47,285
Receivable for capital stock sold		15,345
Prepaid expenses		4,210

Total assets		631,681,432

LIABILITIES
Collateral for securities on loan		132,557,956
Management fee payable		184,844
Payable for capital stock repurchased		118,374
Accrued expenses and other liabilities		94,987

Total liabilities		132,956,161

NET ASSETS	$	498,725,271

Net assets were comprised of:
Common stock, at $0.01 par value	$	181,444
Paid-in capital in excess of par		297,032,549

		297,213,993
Distributions in excess of net investment income		(243,209	)
Accumulated net realized gain on investments		19,925,539
Net unrealized appreciation on investments and foreign currencies		181,828,948

Net assets, December 31, 2003	$	498,725,271

Net asset value and redemption price per share, $498,725,271 / 18,144,385 outstanding shares of common stock (authorized 60,000,000 shares)	$	27.49

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $355,622 foreign withholding tax)	$	4,894,847
Income from securities lending, net		413,708

		5,308,555

EXPENSES
Management fee		1,828,730
Custodian’s fees and expenses		187,000
Legal fees and expenses		18,000
Directors’ fees		16,000
Audit fee		8,000
Insurance expenses		7,000
Commitment fee on syndicated credit agreement		2,000
Transfer agent’s fees and expenses		1,400
Miscellaneous		6,609

Total expenses		2,074,739
Less: custodian fee credit		(944	)

Net expenses		2,073,795

NET INVESTMENT INCOME		3,234,760

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		34,290,607
Foreign currencies		(61,827	)

		34,228,780

Net change in unrealized appreciation (depreciation) on:
Investments		104,145,416
Foreign currencies		3,875

		104,149,291

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		138,378,071

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	141,612,831

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	3,234,760		$	1,728,527
Net realized gain on investments and foreign currencies		34,228,780			28,523,441
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		104,149,291			31,382,815

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		141,612,831			61,634,783

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(16,566,539	)		(2,076,519	)
Distributions from net realized capital gains		(25,527,524	)		(4,241,217	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(42,094,063	)		(6,317,736	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [1,216,643 and 1,726,025 shares, respectively]		27,391,981			36,803,747
Capital stock issued in reinvestment of dividends and distributions [2,200,422 and 286,649 shares, respectively]		42,094,063			6,317,736
Capital stock repurchased [2,238,450 and 2,638,413 shares, respectively]		(49,471,579	)		(55,375,772	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		20,014,465			(12,254,289	)

TOTAL INCREASE IN NET ASSETS		119,533,233			43,062,758
NET ASSETS:
Beginning of year		379,192,038			336,129,280

End of year	$	498,725,271		$	379,192,038

SEE NOTES TO FINANCIAL STATEMENTS.

A10




		*SMALL CAPITALIZATION STOCK PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $119,273,266 (cost $631,208,318)	$	744,692,114
Cash		69
Receivable for investments sold		1,482,085
Dividends and interest receivable		325,088
Receivable for capital stock sold		397,046
Prepaid expenses		5,623

Total assets		746,902,025

LIABILITIES
Collateral for securities on loan		125,065,395
Payable for investments purchased		1,522,702
Management fee payable		207,706
Accrued expenses and other liabilities		138,046
Due to broker—variation margin		59,200
Payable for capital stock repurchased		10,233

Total liabilities		127,003,282

NET ASSETS	$	619,898,743

Net assets were comprised of:
Common stock, at $0.01 par value	$	351,515
Paid-in capital in excess of par		507,296,498

		507,648,013
Undistributed net investment income		49,770
Accumulated net realized loss on investments		(1,427,311	)
Net unrealized appreciation on investments		113,628,271

Net assets, December 31, 2003	$	619,898,743

Net asset value and redemption price per share, $619,898,743 / 35,151,505 outstanding shares of common stock (authorized 140,000,000 shares)	$	17.64

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,358 foreign withholding tax)	$	4,529,324
Interest		16,696
Income from securities lending, net		279,773

		4,825,793

EXPENSES
Management fee		2,038,923
Custodian’s fees and expenses		186,000
Shareholders’ reports		98,000
Audit fee		20,000
Directors’ fees		15,000
Legal fees and expenses		11,000
Insurance expenses		9,000
Commitment fee on syndicated credit agreement		3,000
Transfer agent’s fees and expenses		2,000
Miscellaneous		60,590

Total operating expenses		2,443,513
Loan interest expense (Note 8)		435
Less: custodian fee credit		(415	)

Net expenses		2,443,533

NET INVESTMENT INCOME		2,382,260

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		4,093,976
Futures		1,960,522

		6,054,498

Net change in unrealized appreciation (depreciation) on:
Investments		160,967,395
Futures		210,900

		161,178,295

NET GAIN ON INVESTMENTS		167,232,793

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	169,615,053

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,382,260		$	2,197,258
Net realized gain (loss) on investments		6,054,498			(937,359	)
Net change in unrealized appreciation (depreciation) on investments		161,178,295			(85,289,453	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		169,615,053			(84,029,554	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,476,478	)		(5,036,768	)
Distributions from net realized capital gains		(3,294,388	)		(7,580,347	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(5,770,866	)		(12,617,115	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,617,854 and 4,689,935 shares, respectively]		55,220,782			71,063,726
Capital stock issued in reinvestment of dividends and distributions [416,271 and 792,808 shares, respectively]		5,770,866			12,617,115
Capital stock repurchased [5,077,773 and 8,760,368 shares, respectively]		(72,352,327	)		(130,711,777	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(11,360,679	)		(47,030,936	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		152,483,508			(143,677,605	)
NET ASSETS:
Beginning of year		467,415,235			611,092,840

End of year (a)	$	619,898,743		$	467,415,235

(a) Includes undistributed net investment income of:	$	49,770		$	143,988

SEE NOTES TO FINANCIAL STATEMENTS.

A11




		*SP AGGRESSIVE GROWTH ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $52,803,227)	$	60,591,982
Receivable for capital stock sold		62,462

Total assets		60,654,444

LIABILITIES
Payable for investments purchased		60,290
Payable for capital stock repurchased		2,165
Management fee payable		3,228

Total liabilities		65,683

NET ASSETS	$	60,588,761

Net assets were comprised of:
Common stock, at $0.01 par value	$	77,395
Paid-in capital in excess of par		54,731,440

		54,808,835
Undistributed net investment income		47,387
Accumulated net realized loss on investments		(2,056,216	)
Net unrealized appreciation on investments		7,788,755

Net assets, December 31, 2003	$	60,588,761

Net asset value and redemption price per share, $60,588,761 / 7,739,498 outstanding shares of common stock (authorized 80,000,000 shares)	$	7.83

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	61,907

EXPENSES
Management fee		14,520

NET INVESTMENT INCOME		47,387

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(794,845	)
Net change in unrealized appreciation on investments		10,099,333

NET GAIN ON INVESTMENTS		9,304,488

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	9,351,875

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	47,387		$	7,077
Net realized loss on investments		(794,845	)		(849,967	)
Net change in unrealized appreciation (depreciation) on investments		10,099,333			(2,092,540	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		9,351,875			(2,935,430	)

DIVIDENDS:
Dividends from net investment income		(7,077	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [6,301,640 and 2,019,417 shares, respectively]		43,779,270			13,422,696
Capital stock issued in reinvestment of dividends [1,239 and 0 shares, respectively]		7,077			—
Capital stock repurchased [1,117,894 and 450,554 shares, respectively]		(7,614,148	)		(2,886,647	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		36,172,199			10,536,049

TOTAL INCREASE IN NET ASSETS		45,516,997			7,600,619
NET ASSETS:
Beginning of year		15,071,764			7,471,145

End of year (a)	$	60,588,761		$	15,071,764

(a) Includes undistributed net investment income of:	$	47,387		$	7,077

SEE NOTES TO FINANCIAL STATEMENTS.

A12




		*SP AIM AGGRESSIVE GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $20,384,121)	$	23,636,520
Receivable for investments sold		134,262
Receivable for capital stock sold		36,176
Dividends and interest receivable		3,802
Prepaid expenses		151

Total assets		23,810,911

LIABILITIES
Payable for investments purchased		1,350,551
Payable for capital stock repurchased		33,419
Accrued expenses and other liabilities		18,252
Management fee payable		16,778
Deferred directors’ fees		2,324

Total liabilities		1,421,324

NET ASSETS	$	22,389,587

Net assets were comprised of:
Common stock, at $0.01 par value	$	34,483
Paid-in capital in excess of par		21,850,896

		21,885,379
Accumulated net realized loss on investments		(2,748,191	)
Net unrealized appreciation on investments		3,252,399

Net assets, December 31, 2003	$	22,389,587

Net asset value and redemption price per share, $22,389,587 / 3,448,274 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.49

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT LOSS
Dividends (net of $137 foreign withholding tax)	$	37,342
Interest		11,680

		49,022

EXPENSES
Management fee		136,030
Custodian’s fees and expenses		96,000
Shareholders’ reports		18,000
Audit fee		11,000
Legal fees and expenses		10,000
Directors’ fees		9,200
Transfer agent’s fees and expenses		3,400
Miscellaneous		5,604

Total expenses		289,234
Less: custodian fee credit		(6	)
expense subsidy		(135,997	)

Net expenses		153,231

NET INVESTMENT LOSS		(104,209	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		474,950
Net change in unrealized appreciation (depreciation) on investments		3,391,777

NET GAIN ON INVESTMENTS		3,866,727

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,762,518

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(104,209	)	$	(54,887	)
Net realized gain (loss) on investments		474,950			(1,485,165	)
Net change in unrealized appreciation (depreciation) on investments		3,391,777			(215,922	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,762,518			(1,755,974	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [2,164,971 and 1,346,971 shares, respectively]		12,388,756			7,723,686
Capital stock repurchased [538,571 and 406,837 shares, respectively]		(3,103,409	)		(2,348,828	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		9,285,347			5,374,858

TOTAL INCREASE IN NET ASSETS		13,047,865			3,618,884
NET ASSETS:
Beginning of year		9,341,722			5,722,838

End of year	$	22,389,587		$	9,341,722

SEE NOTES TO FINANCIAL STATEMENTS.

A13




		*SP AIM CORE EQUITY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, excluding repurchase agreement, at value (cost $18,688,922)	$	20,866,264
Repurchase agreements (cost $2,786,836)		2,786,836
Dividends and interest receivable		27,083
Receivable for capital stock sold		12,354
Prepaid expenses		189

Total assets		23,692,726

LIABILITIES
Payable for investments purchased		846,490
Payable for capital stock repurchased		24,745
Management fee payable		15,828
Accrued expenses		2,777
Deferred directors’ fees		2,327

Total liabilities		892,167

NET ASSETS	$	22,800,559

Net assets were comprised of:
Common stock, at $0.01 par value	$	33,519
Paid-in capital in excess of par		22,880,905

		22,914,424
Undistributed net investment income		121,766
Accumulated net realized loss on investments		(2,412,973	)
Net unrealized appreciation on investments		2,177,342

Net assets, December 31, 2003	$	22,800,559

Net asset value and redemption price per share, $22,800,559 / 3,351,915 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.80

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $1,335 foreign withholding tax)	$	274,614
Interest		20,724

		295,338

EXPENSES
Management fee		147,520
Custodian’s fees and expenses		96,000
Shareholders’ reports		15,000
Legal fees and expenses		12,000
Audit fee		10,000
Directors’ fees		10,000
Transfer agent’s fees and expenses		3,500
Commitment fee on syndicated credit agreement		300
Miscellaneous		4,583

Total expenses		298,903
Less: custodian fee credit		(2	)
expense subsidy		(125,329	)

Net expenses		173,572

NET INVESTMENT INCOME		121,766

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		24,833
Net change in unrealized appreciation (depreciation) on investments		3,787,179

NET GAIN ON INVESTMENTS		3,812,012

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,933,778

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS OPERATIONS:
Net investment income	$	121,766		$	56,574
Net realized gain (loss) on investments		24,833			(828,036	)
Net change in unrealized appreciation (depreciation) on investments		3,787,179			(1,385,003	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,933,778			(2,156,465	)

DIVIDENDS:
Dividends from net investment income		(56,574	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [1,344,519 and 1,498,694 shares, respectively]		8,030,198			9,036,126
Capital stock issued in reinvestment of dividends [10,654 and 0 shares, respectively]		56,574			—
Capital stock repurchased [522,105 and 544,772 shares, respectively]		(3,078,682	)		(3,156,290	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		5,008,090			5,879,836

TOTAL INCREASE IN NET ASSETS		8,885,294			3,723,371
NET ASSETS:
Beginning of year		13,915,265			10,191,894

End of year (a)	$	22,800,559		$	13,915,265

(a) Includes undistributed net investment income of:	$	121,766		$	56,574

SEE NOTES TO FINANCIAL STATEMENTS.

A14




		*SP ALLIANCE LARGE CAP GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $134,951,761)	$	149,348,211
Receivable for investments sold		930,459
Receivable for capital stock sold		342,951
Dividends and interest receivable		93,735
Prepaid expenses		951

Total assets		150,716,307

LIABILITIES
Payable for investments purchased		4,083,052
Management fee payable		105,455
Accrued expenses		29,533
Payable for capital stock repurchased		25,977
Deferred directors’ fees		2,541

Total liabilities		4,246,558

NET ASSETS	$	146,469,749

Net assets were comprised of:
Common stock, at $0.01 par value	$	235,224
Paid-in capital in excess of par		145,435,598

		145,670,822
Accumulated net realized loss on investments		(13,597,523	)
Net unrealized appreciation (depreciation) on investments		14,396,450

Net assets, December 31, 2003	$	146,469,749

Net asset value and redemption price per share, $146,469,749 / 23,522,421 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.23

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $7,571 foreign withholding tax)	$	851,041
Interest		17,758

		868,799

EXPENSES
Management fee		817,116
Custodian’s fees and expenses		92,000
Shareholders’ reports		16,000
Audit fee		10,000
Directors’ fees		9,500
Legal fees and expenses		7,300
Transfer agent’s fees and expenses		4,000
Commitment fee on syndicated credit agreement		3,000
Miscellaneous		5,311

Total expenses		964,227
Loan interest expense (Note 8)		7

Net expenses		964,234

NET INVESTMENT LOSS		(95,435	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(3,144,957	)
Net change in unrealized appreciation (depreciation) on investments		23,187,464

NET GAIN ON INVESTMENTS		20,042,507

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	19,947,072

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(95,435	)	$	(127,423	)
Net realized loss on investments		(3,144,957	)		(7,956,966	)
Net change in unrealized appreciation (depreciation) on investments		23,187,464			(9,084,352	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		19,947,072			(17,168,741	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [14,823,256 and 8,138,934 shares, respectively]		84,014,440			47,764,682
Capital stock repurchased [2,766,899 and 1,586,805 shares, respectively]		(15,141,794	)		(8,853,167	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		68,872,646			38,911,515

TOTAL INCREASE IN NET ASSETS		88,819,718			21,742,774
NET ASSETS:
Beginning of year		57,650,031			35,907,257

End of year	$	146,469,749		$	57,650,031

SEE NOTES TO FINANCIAL STATEMENTS.

A15




		*SP ALLIANCE TECHNOLOGY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $17,591,683)	$	20,437,780
Foreign currency, at value (cost: $21,128)		21,758
Receivable for capital stock sold		58,712
Due from manager		8,251
Dividends and interest receivable		3,789
Prepaid expenses		114

Total assets		20,530,404

LIABILITIES
Payable for investments purchased		406,753
Payable for capital stock repurchased		61,760
Accrued expenses and other liabilities		44,594
Deferred directors’ fees		2,323

Total liabilities		515,430

NET ASSETS	$	20,014,974

Net assets were comprised of:
Common stock, at $0.01 par value	$	41,929
Paid-in capital in excess of par		22,528,285

		22,570,214
Accumulated net realized loss on investments		(5,401,800	)
Net unrealized appreciation on investments and foreign currencies		2,846,560

Net assets, December 31, 2003	$	20,014,974

Net asset value and redemption price per share, $20,014,974 / 4,192,925 outstanding shares of common stock (authorized 80,000,000 shares)	$	4.77

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,453 foreign withholding tax)	$	25,149
Interest		3,571

		28,720

EXPENSES
Management fee		133,443
Custodian’s fees and expenses		96,000
Shareholders’ reports		27,000
Legal fees		12,000
Audit fee		11,000
Directors’ fees		11,000
Transfer agent’s fees and expenses		3,500
Commitment fee on syndicated credit agreement		300
Miscellaneous		3,219

Total operating expenses		297,462
Less: custodian fee credit		(29	)
expense subsidy		(146,595	)

Net expenses		150,838

NET INVESTMENT LOSS		(122,118	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		48,748
Foreign currencies		190

		48,938

Net change in unrealized appreciation on:
Investments		3,936,782
Foreign currencies		463

		3,937,245

NET GAIN ON INVESTMENTS		3,986,183

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,864,065

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(122,118	)	$	(76,775	)
Net realized gain (loss) on investments and foreign currencies		48,938			(3,617,853	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		3,937,245			(234,972	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,864,065			(3,929,600	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,893,739 and 1,629,439 shares, respectively]		16,576,777			6,907,662
Capital stock repurchased [1,654,394 and 1,020,070 shares, respectively]		(6,966,079	)		(4,111,161	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		9,610,698			2,796,501

TOTAL INCREASE (DECREASE) IN NET ASSETS		13,474,763			(1,133,099	)
NET ASSETS:
Beginning of year		6,540,211			7,673,310

End of year	$	20,014,974		$	6,540,211

SEE NOTES TO FINANCIAL STATEMENTS.

A16




		*SP BALANCED ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $408,622,120)	$	449,948,440
Receivable for capital stock sold		537,291
Due from manager		7,473

Total assets		450,493,204

LIABILITIES
Payable for investments purchased		526,512
Payable for capital stock repurchased		10,779

Total liabilities		537,291

NET ASSETS	$	449,955,913

Net assets were comprised of:
Common stock, at $0.01 par value	$	465,676
Paid-in capital in excess of par		407,809,047

		408,274,723
Undistributed net investment income		4,764,898
Accumulated net realized loss on investments		(4,410,028	)
Net unrealized appreciation on investments		41,326,320

Net assets, December 31, 2003	$	449,955,913

Net asset value and redemption price per share, $449,955,913 / 46,567,565 outstanding shares of common stock (authorized 80,000,000 shares)	$	9.66

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	4,895,140

EXPENSES
Management fee		130,242

NET INVESTMENT INCOME		4,764,898

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(825,056	)
Net change in unrealized appreciation on investments		53,400,233

NET GAIN ON INVESTMENTS		52,575,177

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	57,340,075

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,764,898		$	2,105,869
Net realized loss on investments		(825,056	)		(2,970,224	)
Net change in unrealized appreciation (depreciation) on investments		53,400,233			(11,808,821	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		57,340,075			(12,673,176	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,105,869	)		—
Distributions from net realized capital gains		—			(83,279	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(2,105,869	)		(83,279	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [30,930,294 and 13,355,238 shares, respectively]		272,487,635			111,712,735
Capital stock issued in reinvestment of dividends and distributions [267,922 and 9,326 shares, respectively]		2,105,869			83,279
Capital stock repurchased [3,147,944 and 2,181,930 shares, respectively]		(27,212,619	)		(17,832,174	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		247,380,885			93,963,840

TOTAL INCREASE IN NET ASSETS		302,615,091			81,207,385
NET ASSETS:
Beginning of year		147,340,822			66,133,437

End of year (a)	$	449,955,913		$	147,340,822

(a) Includes undistributed net investment income of:	$	4,764,898		$	2,105,869

SEE NOTES TO FINANCIAL STATEMENTS.

A17




		*SP CONSERVATIVE ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $261,465,311)	$	281,222,116
Receivable for capital stock sold		378,495

Total assets		281,600,611

LIABILITIES
Payable for investments purchased		353,721
Payable for capital stock repurchased		24,766
Management fee payable		12,519

Total liabilities		391,006

NET ASSETS	$	281,209,605

Net assets were comprised of:
Common stock, at $0.01 par value	$	268,227
Paid-in capital in excess of par		258,458,874

		258,727,101
Undistributed net investment income		4,871,869
Accumulated net realized loss on investments		(2,146,170	)
Net unrealized appreciation on investments		19,756,805

Net assets, December 31, 2003	$	281,209,605

Net asset value and redemption price per share, $281,209,605 / 26,822,730 outstanding shares of common stock (authorized 80,000,000 shares)	$	10.48

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	4,965,562

EXPENSES
Management fee		93,693

NET INVESTMENT INCOME		4,871,869

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		4,191
Net change in unrealized appreciation on investments		24,067,294

NET GAIN ON INVESTMENTS		24,071,485

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	28,943,354

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,871,869		$	2,222,861
Net realized gain (loss) on investments		4,191			(1,747,549	)
Net change in unrealized appreciation (depreciation) on investments		24,067,294			(4,357,935	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		28,943,354			(3,882,623	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,222,861	)		(217,498	)
Distributions from net realized capital gains		(264,006	)		(51,167	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(2,486,867	)		(268,665	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [16,487,104 and 9,791,487 shares, respectively]		161,815,520			90,835,888
Capital stock issued in reinvestment of dividends and distributions [272,384 and 27,669 shares, respectively]		2,486,867			268,665
Capital stock repurchased [2,766,434 and 1,893,646 shares, respectively]		(27,085,414	)		(17,352,023	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		137,216,973			73,752,530

TOTAL INCREASE IN NET ASSETS		163,673,460			69,601,242
NET ASSETS:
Beginning of year		117,536,145			47,934,903

End of year (a)	$	281,209,605		$	117,536,145

(a) Includes undistributed net investment income of:	$	4,871,869		$	2,222,861

SEE NOTES TO FINANCIAL STATEMENTS.

A18




		*SP DAVIS VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, excluding repurchase agreement, at value (cost $304,346,525)	$	356,370,646
Repurchase agreements (cost $35,731,000)		35,731,000
Cash		4,352
Receivable for capital stock sold		764,663
Dividends and interest receivable		617,902
Prepaid expenses		2,563

Total assets		393,491,126

LIABILITIES
Payable for investments purchased		1,983,874
Management fee payable		235,598
Payable for capital stock repurchased		40,959
Accrued expenses		31,271
Deferred directors’ fees		2,954

Total liabilities		2,294,656

NET ASSETS	$	391,196,470

Net assets were comprised of:
Common stock, at $0.01 par value	$	399,295
Paid-in capital in excess of par		344,010,758

		344,410,053
Undistributed net investment income		1,897,640
Accumulated net realized loss on investments		(7,135,344	)
Net unrealized appreciation on investments		52,024,121

Net assets, December 31, 2003	$	391,196,470

Net asset value and redemption price per share, $391,196,470 / 39,929,450 outstanding shares of common stock (authorized 80,000,000 shares)	$	9.80

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $65,446 foreign withholding tax)	$	3,739,111
Interest		230,703

		3,969,814

EXPENSES
Management fee		1,838,356
Custodian’s fees and expenses		105,000
Shareholders’ reports		23,000
Directors’ fees		12,300
Audit fee		10,000
Legal fees and expenses		10,000
Transfer agent’s fees and expenses		4,400
Commitment fee on syndicated credit agreement		3,000
Miscellaneous		7,067

Total expenses		2,013,123
Less: custodian fee credit		(47	)

Net expenses		2,013,076

NET INVESTMENT INCOME		1,956,738

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized loss on:
Investments		(1,231,366	)
Foreign currencies transactions		(59,098	)

		(1,290,464	)

Net change in unrealized appreciation on investments		70,408,319

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		69,117,855

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	71,074,593

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,956,738		$	1,086,121
Net loss on investments and foreign currencies		(1,290,464	)		(5,193,842	)
Net change in unrealized appreciation (depreciation) on investments		70,408,319			(17,647,560	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		71,074,593			(21,755,281	)

DIVIDENDS:
Dividends from net investment income		(1,086,448	)		(13,744	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [22,745,942 and 13,566,789 shares, respectively]		193,625,269			111,060,534
Capital stock issued in reinvestment of dividends [148,219 and 1,536 shares, respectively]		1,086,448			13,744
Capital stock repurchased [4,601,620 and 2,384,516 shares, respectively]		(38,456,775	)		(18,798,893	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		156,254,942			92,275,385

TOTAL INCREASE IN NET ASSETS		226,243,087			70,506,360
NET ASSETS:
Beginning of year		164,953,383			94,447,023

End of year (a)	$	391,196,470		$	164,953,383

(a) Includes undistributed net investment income of:	$	1,897,640		$	1,086,448

SEE NOTES TO FINANCIAL STATEMENTS.

A19




		*SP DEUTSCHE INTERNATIONAL EQUITY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $99,418,800)	$	118,559,497
Foreign currency, at value (cost $1,017,276)		1,017,662
Receivable for capital stock sold		249,274
Dividends and interest receivable		124,037
Tax reclaim receivable		80,192
Prepaid expenses		747

Total assets		120,031,409

LIABILITIES
Management fee payable		85,563
Accrued expenses and other liabilities		45,411
Payable for capital stock repurchased		42,706

Total liabilities		173,680

NET ASSETS	$	119,857,729

Net assets were comprised of:
Common stock, at $0.01 par value	$	156,231
Paid-in capital in excess of par		107,185,177

		107,341,408
Undistributed net investment income		650,550
Accumulated net realized loss on investments		(7,287,333	)
Net unrealized appreciation on investments and foreign currencies		19,153,104

Net assets, December 31, 2003	$	119,857,729

Net asset value and redemption price per share, $119,857,729 / 15,623,080 outstanding shares of common stock (authorized 80,000,000 shares)	$	7.67

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $177,299 foreign withholding tax)	$	1,420,141
Interest		18,022

		1,438,163

EXPENSES
Management fee		650,895
Custodian’s fees and expenses		215,000
Shareholders’ reports		38,000
Audit fee		13,000
Directors’ fees		9,000
Legal fees and expenses		7,000
Transfer agent’s fees and expenses		4,100
Commitment fee on syndicated credit agreement		750
Miscellaneous		4,685

Total expenses		942,430
Less: custodian fee credit		(34	)
expense subsidy		(146,891	)

Net expenses		795,505

NET INVESTMENT INCOME		642,658

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		(226,321	)
Foreign currencies		17,157

		(209,164	)

Net change in unrealized appreciation (depreciation) on:
Investments		21,606,465
Foreign currencies		(13,488	)

		21,592,977

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		21,383,813

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	22,026,471

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	642,658		$	205,519
Net realized loss on investments and foreign currencies		(209,164	)		(3,342,110	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		21,592,977			(2,808,281	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		22,026,471			(5,944,872	)

DIVIDENDS:
Dividends from net investment income		(499,019	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [18,868,658 and 23,506,551 shares, respectively]		119,338,463			151,315,799
Capital stock issued in reinvestment of dividends [87,490 and 0 shares, respectively]		499,019			—
Capital stock repurchased [10,962,639 and 19,232,393 shares, respectively]		(67,886,396	)		(123,647,437	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		51,951,086			27,668,362

TOTAL INCREASE IN NET ASSETS		73,478,538			21,723,490
NET ASSETS:
Beginning of year		46,379,191			24,655,701

End of year (a)	$	119,857,729		$	46,379,191

(a) Includes undistributed net investment income of:	$	650,550		$	489,754

SEE NOTES TO FINANCIAL STATEMENTS.

A20




		*SP GROWTH ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $288,586,598)	$	326,719,708
Receivable for capital stock sold		1,526,804

Total assets		328,246,512

LIABILITIES
Payable for investments purchased		1,517,974
Management fee payable		12,861
Payable for capital stock repurchased		8,882
Deferred directors’ fees		1,044

Total liabilities		1,540,761

NET ASSETS	$	326,705,751

Net assets were comprised of:
Common stock, at $0.01 par value	$	375,246
Paid-in capital in excess of par		293,965,174

		294,340,420
Undistributed net investment income		1,930,590
Accumulated net realized loss on investments		(7,698,369	)
Net unrealized appreciation on investments		38,133,110

Net assets, December 31, 2003	$	326,705,751

Net asset value and redemption price per share, $326,705,751 / 37,524,562 outstanding shares of common stock (authorized 80,000,000 shares)	$	8.71

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	2,018,604

EXPENSES
Management fee		88,014

NET INVESTMENT INCOME		1,930,590

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(3,529,031	)
Net change in unrealized appreciation (depreciation) on investments		49,477,044

NET GAIN ON INVESTMENTS		45,948,013

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	47,878,603

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,930,590		$	797,294
Net realized loss on investments		(3,529,031	)		(3,335,015	)
Net change in unrealized appreciation (depreciation) on investments		49,477,044			(10,816,731	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		47,878,603			(13,354,452	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(797,294	)		—
Distributions from net realized capital gains		—			(21,973	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(797,294	)		(21,973	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [26,204,344 and 10,864,143 shares, respectively]		204,273,702			80,672,788
Capital stock issued in reinvestment of dividends and distributions [118,999 and 2,706 shares, respectively]		797,294			21,973
Capital stock repurchased [2,895,071 and 2,431,952 shares, respectively]		(21,817,431	)		(17,783,588	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		183,253,565			62,911,173

TOTAL INCREASE IN NET ASSETS		230,334,874			49,534,748
NET ASSETS:
Beginning of year		96,370,877			46,836,129

End of year (a)	$	326,705,751		$	96,370,877

(a) Includes undistributed net investment income of:	$	1,930,590		$	797,294

SEE NOTES TO FINANCIAL STATEMENTS.

A21




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, excluding repurchase agreement, at value (cost $28,116,293)	$	32,324,784
Repurchase agreement (cost $5,892,599)		5,892,599
Receivable for investments sold		264,910
Receivable for capital stock sold		16,082
Dividends and interest receivable		2,263
Prepaid expenses		212

Total assets		38,500,850

LIABILITIES
Payable for investments purchased		2,366,740
Payable for capital stock repurchased		1,057,003
Accrued expenses and other liabilities		46,778
Management fee payable		8,888
Deferred directors’ fees		2,325

Total liabilities		3,481,734

NET ASSETS	$	35,019,116

Net assets were comprised of:
Common stock, at $0.01 par value	$	53,700
Paid-in capital in excess of par		34,051,601

		34,105,301
Accumulated net realized loss on investments		(3,294,676	)
Net unrealized appreciation on investments		4,208,491

Net assets, December 31, 2003	$	35,019,116

Net asset value and redemption price per share, $35,019,116 / 5,369,957 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.52

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT LOSS
Dividends (net of $22 foreign withholding tax)	$	73,907
Interest		13,909

		87,816

EXPENSES
Management fee		195,610
Custodian’s fees and expenses		101,000
Shareholders’ reports		28,000
Audit fee		10,000
Legal fees and expenses		10,000
Directors’ fees		8,900
Transfer agent’s fees and expenses		3,800
Miscellaneous		9,323

Total operating expenses		366,633
Less: custodian fee credit		(85	)
expense subsidy		(129,823	)

Net expenses		236,725

NET INVESTMENT LOSS		(148,909	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		1,826,903
Option written		2,927

		1,829,830

Net change in unrealized appreciation (depreciation) on investments		4,451,430

NET GAIN ON INVESTMENTS		6,281,260

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,132,351

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(148,909	)	$	(78,008	)
Net realized gain (loss) on investments		1,829,830			(2,895,182	)
Net change in unrealized appreciation (depreciation) on investments		4,451,430			(713,148	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		6,132,351			(3,686,338	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [6,256,852 and 3,910,333 shares, respectively]		37,240,835			20,588,172
Capital stock repurchased [3,473,309 and 2,539,505 shares, respectively]		(20,867,128	)		(12,819,425	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		16,373,707			7,768,747

TOTAL INCREASE IN NET ASSETS		22,506,058			4,082,409
NET ASSETS:
Beginning of year		12,513,058			8,430,649

End of year	$	35,019,116		$	12,513,058

SEE NOTES TO FINANCIAL STATEMENTS.

A22




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $14,109,729 (cost $192,054,825)	$	228,107,695
Foreign currency, at value (cost $4,645,700)		4,936,866
Receivable for investments sold		754,442
Receivable for capital stock sold		666,999
Dividends and interest receivable		196,072
Tax reclaim receivable		52,410
Prepaid expenses		1,064

Total assets		234,715,548

LIABILITIES
Collateral for securities on loan		14,887,349
Management fee payable		143,346
Payable for capital stock repurchased		328,641
Accrued expenses and other liabilities		54,171
Distribution fee payable		21,281
Administration fee payable		12,768

Total liabilities		15,447,556

NET ASSETS	$	219,267,992

Net assets were comprised of:
Common stock, at $0.01 par value	$	374,500
Paid-in capital, in excess of par		192,635,533

		193,010,033
Undistributed net investment income		268,170
Accumulated net realized loss on investments		(10,366,577	)
Net unrealized appreciation on investments and foreign currencies		36,356,366

Net assets, December 31, 2003	$	219,267,992

Class I:
Net asset value and redemption price per share, $105,621,382 / 17,940,209 outstanding shares of common stock (authorized 80,000,000 shares)	$	5.89

Class II:
Net asset value and redemption price per share, $113,646,610 / 19,509,795 outstanding shares of common stock (authorized 20,000,000 shares)	$	5.83

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $174,772 foreign withholding tax)	$	1,736,690
Interest		76
Income from securities lending, net		55,624

		1,792,390

EXPENSES
Management fee		922,491
Distribution fee—Class II		123,872
Administration fee—Class II		74,323
Custodian’s fees and expenses		245,000
Shareholders’ reports		36,000
Audit fee		13,000
Directors’ fees		9,200
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		6,000
Commitment fee on syndicated credit agreement		1,100
Miscellaneous		6,315

Total operating expenses		1,444,801
Loan interest expense (Note 8)		104
Less: custodian fee credit		(114	)

Net expenses		1,444,791

NET INVESTMENT INCOME		347,599

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		3,714,039
Foreign currencies		(63,601	)

		3,650,438

Net change in unrealized appreciation on:
Investments		38,866,246
Foreign currencies		289,663

		39,155,909

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		42,806,347

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	43,153,946

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	347,599		$	51,374
Net realized gain (loss) on investments and foreign currencies		3,650,438			(8,490,927	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		39,155,909			(1,460,580	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		43,153,946			(9,900,133	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [67,706,358 and 97,962,690 shares, respectively]		323,300,178			459,630,004
Capital stock repurchased [44,166,056 and 90,447,644 shares, respectively]		(205,761,119	)		(425,966,534	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		117,539,059			33,663,470

TOTAL INCREASE IN NET ASSETS		160,693,005			23,763,337
NET ASSETS:
Beginning of year		58,574,987			34,811,650

End of year (a)	$	219,267,992		$	58,574,987

(a) Includes undistributed net investment income of:	$	268,170		$	—

SEE NOTES TO FINANCIAL STATEMENTS.

A23




		*SP LARGE CAP VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $64,687,042)	$	73,207,212
Receivable for investments sold		226,761
Receivable for capital stock sold		139,479
Dividends and interest receivable		81,900
Prepaid expenses		548
Foreign tax reclaim receivable		20

Total assets		73,655,920

LIABILITIES
Payable for investments purchased		643,142
Accrued expenses and other liabilities		74,611
Management fee payable		36,424
Payable for capital stock repurchased		16,701
Deferred directors’ fees		2,362

Total liabilities		773,240

NET ASSETS	$	72,882,680

Net assets were comprised of:
Common stock, at $0.01 par value	$	73,637
Paid-in capital in excess of par		66,528,099

		66,601,736
Undistributed net investment income		674,049
Accumulated net realized loss on investments		(2,913,275	)
Net unrealized appreciation on investments		8,520,170

Net assets, December 31, 2003	$	72,882,680

Net asset value and redemption price per share, $72,882,680 / 7,363,662 outstanding shares of common stock (authorized 80,000,000 shares)	$	9.90

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $1,220 foreign withholding tax)	$	1,129,365
Interest		4,612

		1,133,977

EXPENSES
Management fee		409,060
Custodian’s fees and expenses		102,000
Shareholders’ reports		20,000
Audit fee		10,000
Directors’ fees		9,500
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		3,800
Commitment fee on syndicated credit agreement		800
Miscellaneous		6,129

Total expenses		568,789
Loan interest expense (Note 8)		15
Less: custodian fee credit		(299	)
expense subsidy		(108,577	)

Net expenses		459,928

NET INVESTMENT INCOME		674,049

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(194,061	)
Net change in unrealized appreciation (depreciation) on investments		12,923,618

NET GAIN ON INVESTMENTS		12,729,557

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	13,403,606

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	674,049		$	403,367
Net realized loss on investments		(194,061	)		(2,058,199	)
Net change in unrealized appreciation (depreciation) on investments		12,923,618			(4,609,724	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		13,403,606			(6,264,556	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		—			(403,360	)
Tax return of capital distributions		—			(6,059	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		—			(409,419	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [4,233,763 and 3,406,672 shares, respectively]		36,308,863			29,950,399
Capital stock issued in reinvestment of dividends and distributions [0 and 52,288 shares, respectively]		—			409,419
Capital stock repurchased [1,778,946 and 1,063,583 shares, respectively]		(15,149,223	)		(9,099,948	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		21,159,640			21,259,870

TOTAL INCREASE IN NET ASSETS		34,563,246			14,585,895
NET ASSETS:
Beginning of year		38,319,434			23,733,539

End of year(a)	$	72,882,680		$	38,319,434

(a) Includes undistributed net investment income of:	$	674,049		$	—

SEE NOTES TO FINANCIAL STATEMENTS.

A24




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $17,968,434)	$	20,392,645
Receivable for investments sold		83,813
Receivable for capital stock sold		25,846
Dividends and interest receivable		25,799
Due from manager		13,666
Prepaid expenses		135
Tax reclaim receivable		20

Total assets		20,541,924

LIABILITIES
Payable for investments purchased		171,897
Accrued expenses and other liabilities		48,892
Deferred directors’ fees		2,325
Payable for capital stock repurchased		1,421

Total liabilities		224,535

NET ASSETS	$	20,317,389

Net assets were comprised of:
Common stock, at $0.01 par value	$	32,120
Paid-in capital in excess of par		21,867,474

		21,899,594
Undistributed net investment income		43,844
Accumulated net realized loss on investments		(4,050,260	)
Net unrealized appreciation on investments and foreign currencies		2,424,211

Net assets, December 31, 2003	$	20,317,389

Net asset value and redemption price per share, $20,317,389 / 3,212,045 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.33

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $308 foreign withholding tax)	$	170,530
Interest		3,999

		174,529

EXPENSES
Management fee		97,980
Custodian’s fees and expenses		100,000
Shareholders’ reports		26,000
Audit fee		11,000
Legal fees and expenses		10,000
Directors’ fees		9,000
Transfer agent’s fees and expenses		3,400
Commitment fee on syndicated credit agreement		200
Miscellaneous		6,812

Total expenses		264,392
Less: expense subsidy		(133,734	)
custodian fee credit		(29	)

Net expenses		130,629

NET INVESTMENT INCOME		43,900

NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		699,619
Foreign currencies		(56	)

		699,563

Net change in unrealized appreciation (depreciation) on:
Investments		2,517,316
Foreign currencies		(31	)

		2,517,285

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		3,216,848

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,260,748

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income	$	43,900		$	14,846
Net realized gain (loss) on investments and foreign currencies		699,563			(3,082,433	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		2,517,285			(37,213	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,260,748			(3,104,800	)

DIVIDENDS:
Dividends from net investment income		(14,769	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [1,965,303 and 2,421,976 shares, respectively]		11,160,163			13,214,957
Capital stock issued in reinvestment of dividends [3,026 and 0 shares, respectively]		14,769			—
Capital stock repurchased [625,563 and 1,723,512 shares, respectively]		(3,444,184	)		(8,971,624	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		7,730,748			4,243,333

TOTAL INCREASE IN NET ASSETS		10,976,727			1,138,533
NET ASSETS:
Beginning of year		9,340,662			8,202,129

End of year (a)	$	20,317,389		$	9,340,662

(a) Includes undistributed net investment income of:	$	43,844		$	14,769

SEE NOTES TO FINANCIAL STATEMENTS.

A25




		*SP MID-CAP GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $50,378,753)	$	60,232,726
Receivable for capital stock sold		139,006
Dividends and interest receivable		6,599
Prepaid expenses		338

Total assets		60,378,669

LIABILITIES
Payable for investments purchased		1,029,693
Payable for capital stock repurchased		375,094
Management fee payable		38,248
Accrued expenses and other liabilities		25,605
Deferred directors’ fees		2,352

Total liabilities		1,470,992

NET ASSETS	$	58,907,677

Net assets were comprised of:
Common stock, at $0.01 par value	$	102,863
Paid-in capital in excess of par		59,603,618

		59,706,481
Accumulated net realized loss on investments and foreign currencies		(10,652,777	)
Net unrealized appreciation on investments and foreign currencies		9,853,973

Net assets, December 31, 2003	$	58,907,677

Net asset value and redemption price per share, $58,907,677 / 10,286,269 outstanding shares of common stock (authorized 80,000,000 shares)	$	5.73

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	80,476
Interest		9,973

		90,449

EXPENSES
Management fee		266,823
Custodian’s fees and expenses		93,000
Shareholders’ reports		45,000
Audit fee		12,000
Directors’ fees		11,000
Miscellaneous		7,290
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		4,300

Total expenses		446,913
Less: custodian fee credit		(89	)
expense subsidy		(113,366	)

Net expenses		333,458

NET INVESTMENT LOSS		(243,009	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		998,871
Foreign currencies		49

		998,920

Net change in unrealized appreciation (depreciation) on:
Investments		10,267,536
Foreign currencies		(48	)

		10,267,488

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		11,266,408

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	11,023,399

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(243,009	)	$	(97,107	)
Net realized gain (loss) on investments and foreign currencies		998,920			(11,106,894	)
Net change in unrealized appreciation on investments and foreign currencies		10,267,488			805,662

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		11,023,399			(10,398,339	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [8,725,545 and 4,993,128 shares, respectively]		44,431,608			24,806,716
Capital stock repurchased [2,903,968 and 2,612,747 shares, respectively]		(14,817,541	)		(12,027,142	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		29,614,067			12,779,574

TOTAL INCREASE IN NET ASSETS		40,637,466			2,381,235
NET ASSETS:
Beginning of year		18,270,211			15,888,976

End of year	$	58,907,677		$	18,270,211

SEE NOTES TO FINANCIAL STATEMENTS.

A26




		*SP PIMCO HIGH YIELD PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $234,552,055)	$	247,541,900
Cash		70,932
Dividends and interest receivable		4,386,126
Receivable for capital stock sold		850,781
Receivable for investments sold		202,841
Prepaid expenses		1,647

Total assets		253,054,227

LIABILITIES
Payable for investments purchased		4,624,104
Management fee payable		120,089
Accrued expenses and other liabilities		43,062
Payable for capital stock repurchased		14,607
Deferred directors’ fee		2,463

Total liabilities		4,804,325

NET ASSETS	$	248,249,902

Net assets were comprised of:
Common stock, at $0.01 par value	$	235,785
Paid-in capital in excess of par		232,176,712

		232,412,497
Undistributed net investment income		166,131
Accumulated net realized gain on investments		2,681,429
Net unrealized appreciation on investments		12,989,845

Net assets, December 31, 2003	$	248,249,902

Net asset value and redemption price per share, $248,249,902 / 23,578,467 outstanding shares of common stock (authorized 80,000,000 shares)	$	10.53

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	12,508,522
Dividends		509

		12,509,031

EXPENSES
Management fee		975,775
Custodian’s fees and expenses		126,000
Shareholders’ reports		31,000
Audit fee		11,000
Directors’ fees		10,000
Legal fees and expenses		10,000
Transfer agent’s fees and expenses		4,100
Commitment fee on syndicated credit agreement		2,700
Miscellaneous		5,531

Total expenses		1,176,106
Less: custodian fee credit		(2,559	)

Net expenses		1,173,547

NET INVESTMENT INCOME		11,335,484

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		6,084,437
Options written		14,182
Futures		(141,668	)
Foreign currencies		(48,516	)

		5,908,435

Net change in unrealized appreciation (depreciation) on:
Investments		15,127,554
Options written		42,235
Futures		(21,721	)
Foreign currencies		30,914

		15,178,982

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		21,087,417

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	32,422,901

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	11,335,484		$	6,174,121
Net realized gain (loss) on investments and foreign currencies		5,908,435			(2,573,896	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		15,178,982			(1,890,790	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		32,422,901			1,709,435

DIVIDENDS:
Dividends from net investment income		(11,263,009	)		(6,187,069	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [20,514,138 and 10,330,152 shares, respectively]		207,016,868			95,514,916
Capital stock issued in reinvestment of dividends [1,111,648 and 678,859 shares, respectively]		11,263,009			6,187,069
Capital stock repurchased [10,279,132 and 4,079,206 shares, respectively]		(103,413,348	)		(37,004,849	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		114,866,529			64,697,136

TOTAL INCREASE IN NET ASSETS		136,026,421			60,219,502
NET ASSETS:
Beginning of year		112,223,481			52,003,979

End of year (a)	$	248,249,902		$	112,223,481

(a) Includes undistributed net investment income of:	$	166,131		$	59,989

SEE NOTES TO FINANCIAL STATEMENTS.

A27




		*SP PIMCO TOTAL RETURN PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $829,032,368)	$	836,158,058
Foreign currency, at value (cost $4,607,988)		4,751,479
Receivable for investments sold		180,021,878
Dividends and interest receivable		4,284,409
Unrealized appreciation on swaps		1,744,784
Premium for swaps purchased		1,495,592
Receivable for capital stock sold		1,031,748
Interest receivable on swap agreement		603,113
Due from broker—variation margin		511,232
Unrealized appreciation on forward foreign currency contracts		124,807
Prepaid expenses		7,235

Total assets		1,030,734,335

LIABILITIES
Investments sold short, at value (proceeds received $162,401,247)		163,708,543
Payable for investments purchased		16,911,383
Outstanding options written (premium received $4,862,208)		3,756,170
Unrealized depreciation on forward foreign currency contracts		2,026,714
Unrealized depreciation on swaps		1,842,229
Premium for written swaps		1,502,925
Interest payable on investments sold short		663,807
Interest payable on swap agreements		523,572
Management fee payable		414,701
Payable for capital stock repurchased		206,851
Accrued expenses		47,381
Deferred directors’ fees		2,828
Payable to custodian		2,659

Total liabilities		191,609,763

NET ASSETS	$	839,124,572

Net assets were comprised of:
Common stock, at $0.01 par value	$	727,345
Paid-in capital in excess of par		812,529,097

		813,256,442
Undistributed net investment income		3,547,759
Accumulated net realized gain on investments		12,648,454
Net unrealized appreciation on investments and foreign currencies		9,671,917

Net assets, December 31, 2003	$	839,124,572

Net asset value and redemption price per share, $839,124,572 / 72,734,474 outstanding shares of common stock (authorized 80,000,000 shares)	$	11.54

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	19,007,325
Dividends		8,545

		19,015,870

EXPENSES
Management fee		4,008,826
Custodian’s fees and expenses		217,000
Shareholders’ reports		46,000
Audit fee		22,000
Directors’ fees		18,000
Commitment fee on syndicated credit agreement		16,000
Legal fees and expenses		13,000
Insurance expenses		7,300
Transfer agent’s fees and expenses		4,800
Miscellaneous		4,209

Total expenses		4,357,135
Less: custodian fee credit		(4,032	)

Net expenses		4,353,103

NET INVESTMENT INCOME		14,662,767

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		16,134,272
Options written		642,917
Futures		8,717,500
Foreign currencies		(5,988,412	)
Swaps		3,411,986
Short sales		(3,740,573	)

		19,177,690

Net change in unrealized appreciation (depreciation) on:
Investments		(2,651,610	)
Options written		1,369,940
Futures		2,083,851
Foreign currencies		114,724
Swaps		2,129,290
Short sales		(913,582	)

		2,132,613

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		21,310,303

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	35,973,070

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	14,662,767		$	8,880,764
Net realized gain on investments and foreign currencies		19,177,690			12,280,351
Net change in unrealized appreciation on investments and foreign currencies		2,132,613			7,837,234

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		35,973,070			28,998,349

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(16,698,108	)		(8,915,477	)
Distributions from net realized capital gains		(12,318,942	)		(7,146	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(29,017,050	)		(8,922,623	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [40,628,530 and 30,861,573 shares, respectively]		466,437,561			340,380,452
Capital stock issued in reinvestment of dividends and distributions [2,550,340 and 802,991 shares, respectively]		29,017,050			8,922,623
Capital stock repurchased [11,794,598 and 4,044,791 shares, respectively]		(134,952,839	)		(44,686,394	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		360,501,772			304,616,681

TOTAL INCREASE IN NET ASSETS		367,457,792			324,692,407
NET ASSETS:
Beginning of year		471,666,780			146,974,373

End of year (a)	$	839,124,572		$	471,666,780

(a) Includes undistributed net investment income of:	$	3,547,759		$	1,837,788

SEE NOTES TO FINANCIAL STATEMENTS.

A28




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $154,201,729)	$	169,336,869
Receivable for investments sold		3,194,168
Receivable for capital stock sold		472,356
Dividends and interest receivable		44,765
Prepaid expenses		994
Tax Reclaim Receivable		744

Total assets		173,049,896

LIABILITIES
Payable for investments purchased		2,490,080
Payable for capital stock repurchased		85,250
Management fee payable		81,897
Accrued expenses and other liabilities		51,516
Distribution fee payable		72
Administration fee payable		43

Total liabilities		2,708,858

NET ASSETS	$	170,341,038

Net assets were comprised of:
Common stock, at $0.01 par value	$	256,283
Paid-in capital in excess of par		155,413,306

		155,669,589
Accumulated net realized loss on investments		(463,814	)
Net unrealized appreciation on investments and foreign currency		15,135,263

Net assets, December 31, 2003	$	170,341,038

Class I:
Net asset value and redemption price per share, $169,996,700 / 25,575,928 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.65

Class II:
Net asset value and redemption price per share, $344,338 / 52,307 outstanding shares of common stock (authorized 20,000,000 shares)	$	6.58

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT LOSS
Dividends (net of $2,420 foreign withholding tax)	$	219,609

EXPENSES
Management fee		575,081
Distribution fee—Class II		732
Administration fee—Class II		439
Custodian’s fees and expenses		100,000
Shareholders’ reports		40,000
Directors’ fees		12,000
Audit fee		11,000
Legal fees and expenses		8,000
Transfer agent’s fees and expenses		4,500
Commitment fee on syndicated credit agreement		1,800
Miscellaneous		6,225

Total operating expenses		759,777
Less: custodian fee credit		(117	)

Net expenses		759,660

NET INVESTMENT LOSS		(540,051	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		15,684,600
Foreign currencies		474
Options written		(21,230	)

		15,663,844

Net change in unrealized appreciation (depreciation) on:
Investments		15,314,837
Foreign currencies		123

		15,314,960

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		30,978,804

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	30,438,753

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(540,051	)	$	(201,427	)
Net realized gain (loss) on investments and foreign currencies		15,663,844			(12,814,981	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		15,314,960			(1,640,738	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		30,438,753			(14,657,146	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [19,310,787 and 8,274,153 shares, respectively]		114,911,354			43,940,152
Capital stock repurchased [4,638,713 and 1,871,780 shares, respectively]		(26,241,240	)		(9,411,936	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		88,670,114			34,528,216

TOTAL INCREASE IN NET ASSETS		119,108,867			19,871,070
NET ASSETS:
Beginning of year		51,232,171			31,361,101

End of year	$	170,341,038		$	51,232,171

SEE NOTES TO FINANCIAL STATEMENTS.

A29




		*SP SMALL/MID CAP VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $216,101,802)	$	251,967,481
Cash		2,340,668
Receivable for investments sold		828,214
Receivable for capital stock sold		628,522
Dividends and interest receivable		226,409
Prepaid expenses		1,579

Total assets		255,992,873

LIABILITIES
Payable for investments purchased		5,163,495
Management fee payable		180,372
Accrued expenses and other liabilities		52,014
Payable for capital stock repurchased		19,312
Deferred directors’ fees		2,581

Total liabilities		5,417,774

NET ASSETS	$	250,575,099

Net assets were comprised of:
Common stock, at $0.01 par value	$	194,558
Paid-in capital in excess of par		214,040,695

		214,235,253
Undistributed net investment income		553,326
Accumulated net realized loss on investments		(79,159	)
Net unrealized appreciation on investments		35,865,679

Net assets, December 31, 2003	$	250,575,099

Class I:
Net asset value and redemption price per share, $250,575,099 / 19,455,827 outstanding shares of common stock (authorized 80,000,000 shares)	$	12.88

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $4,956 foreign withholding tax)	$	2,091,056
Interest		31,058

		2,122,114

EXPENSES
Management fee		1,354,612
Custodian’s fees and expenses		117,000
Shareholders’ reports		47,000
Directors’ fees		13,000
Audit fee		12,000
Legal fees and expenses		11,000
Transfer agent’s fees and expenses		4,500
Commitment fee on syndicated credit agreement		2,300
Miscellaneous		8,911

Total expenses		1,570,323
Less: custodian fee credit		(1,491	)

Net expenses		1,568,832

NET INVESTMENT INCOME		553,282

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		5,661,583
Foreign currencies		44

		5,661,627

Net change in unrealized appreciation (depreciation) on investments		43,300,041

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		48,961,668

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	49,514,950

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	553,282		$	534,192
Net realized gain (loss) on investments and foreign currencies		5,661,627			(5,223,511	)
Net change in unrealized appreciation (depreciation) on investments		43,300,041			(9,950,567	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		49,514,950			(14,639,886	)

DIVIDENDS:
Dividends from net investment income		(37,628	)		(463,177	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [12,296,185 and 7,737,279 shares, respectively]		135,021,387			84,398,594
Capital stock issued in reinvestment of dividends [4,099 and 47,701 shares, respectively]		37,628			463,177
Capital stock repurchased [3,095,968 and 1,709,203 shares, respectively]		(33,154,796	)		(18,014,772	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		101,904,219			66,846,999

TOTAL INCREASE IN NET ASSETS		151,381,541			51,743,936
NET ASSETS:
Beginning of year		99,193,558			47,449,622

End of year (a)	$	250,575,099		$	99,193,558

(a) Includes undistributed net investment income of:	$	553,326		$	37,628

SEE NOTES TO FINANCIAL STATEMENTS.

A30




		*SP STRATEGIC PARTNERS FOCUSED GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $31,632,418)	$	36,102,277
Receivable for investments sold		1,342,474
Receivable for capital stock sold		22,355
Dividends and interest receivable		23,168
Prepaid expenses		265

Total assets		37,490,539

LIABILITIES
Payable for investments purchased		1,225,782
Payable for capital stock repurchased		328,485
Management fee payable		26,004
Accrued expenses and other liabilities		25,805
Distribution fee payable		2,842
Deferred directors’ fees		2,353
Administration fee payable		1,705

Total liabilities		1,612,976

NET ASSETS	$	35,877,563

Net assets were comprised of:
Common stock, at $0.01 par value	$	56,904
Paid-in capital in excess of par		35,970,310

		36,027,214
Accumulated net realized loss on investments		(4,619,510	)
Net unrealized appreciation on investments		4,469,859

Net assets, December 31, 2003	$	35,877,563

Class I:
Net asset value and redemption price per share, $21,638,468 / 3,415,797 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.33

Class II:
Net asset value and redemption price per share, $14,239,095 / 2,274,653 outstanding shares of common stock (authorized 20,000,000 shares)	$	6.26

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,115 foreign withholding tax)	$	178,705
Interest		2,381

		181,086

EXPENSES
Management fee		225,063
Custodian’s fees and expenses		110,000
Shareholders’ reports		34,000
Distribution fee—Class II		24,302
Administration fee—Class II		14,581
Audit fee		12,000
Directors’ fees and expenses		11,000
Legal fees and expenses		11,000
Transfer agent’s fees and expenses		3,800
Commitment fee on syndicated credit agreement		100
Miscellaneous		4,948

Total expenses		450,794
Less: custodian fee credit		(127	)
expense subsidy		(159,298	)

Net expenses		291,369

NET INVESTMENT LOSS		(110,283	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		453,290
Net change in unrealized appreciation (depreciation) on investments		5,735,988

NET GAIN ON INVESTMENTS		6,189,278

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,078,995

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(110,283	)	$	(55,294	)
Net realized gain (loss) on investments		453,290			(2,328,260	)
Net change in unrealized appreciation (depreciation) on investments		5,735,988			(1,369,727	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		6,078,995			(3,753,281	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,613,901 and 3,165,201 shares, respectively]		20,091,224			17,595,192
Capital stock repurchased [1,382,835 and 1,140,272 shares, respectively]		(7,637,169	)		(6,137,311	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		12,454,055			11,457,881

TOTAL INCREASE IN NET ASSETS		18,533,050			7,704,600
NET ASSETS:
Beginning of year		17,344,513			9,639,913

End of year	$	35,877,563		$	17,344,513

SEE NOTES TO FINANCIAL STATEMENTS.

A31




		*STOCK INDEX PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $659,448,903 (cost $2,970,499,659)	$	3,621,545,331
Dividends receivable		3,352,657
Receivable for capital stock sold		1,777,242
Due from broker—variation margin		218,225
Prepaid expenses		27,937
Foreign tax reclaim receivable		8,414

Total assets		3,626,929,806

LIABILITIES
Collateral for securities on loan		684,279,573
Management fee payable		848,545
Payable for capital stock repurchased		536,376
Accrued expenses and other liabilities		362,673

Total liabilities		686,027,167

NET ASSETS	$	2,940,902,639

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,003,962
Paid-in capital in excess of par		2,237,878,167

		2,238,882,129
Undistributed net investment income		1,141,978
Accumulated net realized gain on investments		46,880,536
Net unrealized appreciation on investments		653,997,996

Net assets, December 31, 2003	$	2,940,902,639

Net asset value and redemption price per share, $2,940,902,639 / 100,396,165 outstanding shares of common stock (authorized 340,000,000 shares)	$	29.29

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	45,127,834
Interest		47,749
Income from securities loaned, net		352,351

		45,527,934

EXPENSES
Management fee		8,883,674
Custodian’s fees and expenses		293,000
Audit fee		71,500
Shareholders’ reports		57,000
Insurance expenses		45,000
Directors’ fees		40,000
Commitment fee on syndicated credit agreement		36,000
Legal fees and expenses		25,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		4,985

Total expenses		9,461,659
Less: custodian fee credit		(343	)

Net expenses		9,461,316

NET INVESTMENT INCOME		36,066,618

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		38,734,772
Futures		13,681,530

		52,416,302

Net change in unrealized appreciation (depreciation) on:
Investments		553,521,590
Futures		3,990,274

		557,511,864

NET GAIN ON INVESTMENTS		609,928,166

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	645,994,784

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	36,066,618		$	35,460,042
Net realized gain on investments		52,416,302			83,880,833
Net change in unrealized appreciation (depreciation) on investments		557,511,864			(852,291,866	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		645,994,784			(732,950,991	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(36,873,448	)		(34,435,873	)
Distributions from net realized capital gain		(88,278,910	)		(23,877,334	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(125,152,358	)		(58,313,207	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [11,323,413 and 10,311,525 shares, respectively]		289,984,229			293,101,021
Capital stock issued in reinvestment of dividends and distributions [5,178,990 and 2,190,809 shares, respectively]		125,152,358			58,313,207
Capital stock repurchased [13,763,310 and 22,105,878 shares, respectively]		(347,327,411	)		(601,988,288	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		67,809,176			(250,574,060	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		588,651,602			(1,041,838,258	)
NET ASSETS:
Beginning of year		2,352,251,037			3,394,089,295

End of year (a)	$	2,940,902,639		$	2,352,251,037

(a) Includes undistributed net investment income of:	$	1,141,978		$	1,948,808

SEE NOTES TO FINANCIAL STATEMENTS.

A32




		*VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $264,057,525 (cost $1,560,282,796)	$	1,763,787,793
Receivable for investments sold		13,855,596
Dividends and interest receivable		1,757,592
Receivable for capital stock sold		207,433
Tax reclaim receivable		111,454
Prepaid expenses		14,119

Total assets		1,779,733,987

LIABILITIES
Collateral for securities on loan		281,152,744
Payable for investments purchased		38,892,571
Payable for capital stock repurchased		367,191
Accrued expenses and other liabilities		227,799
Management fee payable		69,345
Distribution fee payable		590
Administration fee payable		354

Total liabilities		320,710,594

NET ASSETS	$	1,459,023,393

Net assets were comprised of:
Common stock, at $0.01 par value	$	840,253
Paid-in capital in excess of par		1,474,754,423

		1,475,594,676
Accumulated net realized loss on investments		(220,076,280	)
Net unrealized appreciation on investments		203,504,997

Net assets, December 31, 2003	$	1,459,023,393

Class I:
Net asset value and redemption price per share $1,456,148,068 / 83,859,774 outstanding shares of common stock (authorized 340,000,000 shares)	$	17.36

Class II:
Net asset value and redemption price per share, $2,875,325 / 165,510 outstanding shares of common stock (authorized 10,000,000 shares)	$	17.37

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $88,435 foreign withholding tax)	$	24,652,712
Income from securities lending, net		134,130

		24,786,842

EXPENSES
Management fee		5,132,821
Distribution fee—Class II		5,746
Administration fee—Class II		3,447
Shareholders’ reports		248,000
Custodian’s fees and expenses		163,000
Audit fee		32,000
Directors’ fees		25,000
Insurance expenses		24,000
Commitment fee on syndicated credit agreement		17,000
Legal fees and expenses		16,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		349

Total expenses		5,672,863
Less: custodian fee credit		(171	)

Net expenses		5,672,692

NET INVESTMENT INCOME		19,114,150

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		4,156,849
Net change in unrealized appreciation on investments		302,547,646

NET GAIN ON INVESTMENTS		306,704,495

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	325,818,645

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	19,114,150		$	20,934,624
Net realized gain (loss) on investments		4,156,849			(219,804,118	)
Net change in unrealized appreciation (depreciation) on investments		302,547,646			(186,200,124	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		325,818,645			(385,069,618	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income
Class I		(19,922,456	)		(20,321,246	)
Class II		(26,543	)		(19,706	)

		(19,948,999	)		(20,340,952	)

Tax return of capital
Class I		(111,957	)		—
Class II		(149	)		—

		(112,106	)		—

TOTAL DIVIDENDS AND DISTRIBUTIONS		(20,061,105	)		(20,340,952	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [5,751,364 and 11,993,803 shares, respectively]		85,572,556			190,666,422
Capital stock issued in reinvestment of dividends [1,195,581 and 1,472,190 shares, respectively]		20,061,105			20,340,952
Capital stock repurchased [13,737,343 and 23,263,374 shares, respectively]		(200,934,074	)		(359,497,771	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(95,300,413	)		(148,490,397	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		210,457,127			(553,900,967	)
NET ASSETS:
Beginning of year		1,248,566,266			1,802,467,233

End of year (a)	$	1,459,023,393		$	1,248,566,266

(a) Includes undistributed net investment income of:	$	—		$	834,849

SEE NOTES TO FINANCIAL STATEMENTS.

A33




		*ZERO COUPON BOND PORTFOLIO 2005*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $60,183,532)	$	63,951,794
Receivable for capital stock sold		15,474
Prepaid expenses		732
Interest receivable		33

Total assets		63,968,033

LIABILITIES
Accrued expenses and other liabilities		46,732
Management fee payable		21,773
Payable for capital stock repurchased		1,636
Deferred directors’ fee payable		1,339

Total liabilities		71,480

NET ASSETS	$	63,896,553

Net assets were comprised of:
Common stock, at $0.01 par value	$	47,738
Paid-in capital in excess of par		58,583,131

		58,630,869
Accumulated net realized gain on investments		1,497,422
Net unrealized appreciation on investments		3,768,262

Net assets, December 31, 2003	$	63,896,553

Net asset value and redemption price per share, $63,896,553 / 4,773,781 outstanding shares of common stock (authorized 20,000,000 shares)	$	13.38

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	3,296,468
Dividends		13,358

		3,309,826

EXPENSES
Management fee		265,376
Custodian’s fees and expenses		97,000
Shareholders’ reports		30,000
Audit fee		12,000
Legal fees and expenses		11,000
Directors’ fees		9,000
Commitment fee on syndicated credit agreement		5,000
Insurance expenses		1,000
Transfer agent’s fees and expenses		800
Miscellaneous		3,696

Total expenses		434,872
Less: custodian fee credit		(83	)

Net expenses		434,789

NET INVESTMENT INCOME		2,875,037

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments		1,511,352
Net change in unrealized appreciation (depreciation) on investments		(3,113,046	)

NET LOSS ON INVESTMENTS		(1,601,694	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,273,343

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,875,037		$	2,830,566
Net realized gain on investments		1,511,352			43,507
Net change in unrealized appreciation (depreciation) on investments		(3,113,046	)		3,159,236

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		1,273,343			6,033,309

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,875,037	)		(5,442,907	)
Distributions from net realized capital gains		(57,155	)		(544,728	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(2,932,192	)		(5,987,635	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [433,990 and 810,151 shares, respectively]		5,978,323			11,031,768
Capital stock issued in reinvestment of dividends and distributions [216,114 and 451,100 shares, respectively]		2,932,192			5,987,635
Capital stock repurchased [745,055 and 381,890 shares, respectively]		(10,203,192	)		(5,170,039	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(1,292,677	)		11,849,364

TOTAL INCREASE (DECREASE) IN NET ASSETS		(2,951,526	)		11,895,038
NET ASSETS:
Beginning of year		66,848,079			54,953,041

End of year	$	63,896,553		$	66,848,079

SEE NOTES TO FINANCIAL STATEMENTS.

A34




		*CONSERVATIVE BALANCED PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 91.2%		Value (Note 2)
COMMON STOCKS — 55.1%	Shares	Value (Note 2)
Aerospace — 1.0%
Boeing Co.	131,300	$	5,532,982
General Dynamics Corp.	30,900		2,793,051
Honeywell International, Inc.	132,512		4,429,876
Lockheed Martin Corp.(b)	67,200		3,454,080
Northrop Grumman Corp.	27,181		2,598,504
Raytheon Co.	60,300		1,811,412
Rockwell Collins, Inc.	29,100		873,873
United Technologies Corp.(b)	74,500		7,060,365

			28,554,143

Airlines — 0.1%
Delta Airlines, Inc.	20,600		243,286
Southwest Airlines Co.	117,300		1,893,222

			2,136,508

Apparel — 0.2%
Cintas Corp.(b)	24,000		1,203,120
Jones Apparel Group, Inc.	16,000		563,680
Nike, Inc. (Class “B” Stock)(b)	42,200		2,889,012
Reebok International, Ltd.(a)(b)	10,200		401,064

			5,056,876

Autos – Cars & Trucks — 0.5%
Cummins Engine Co., Inc.	7,200		352,368
Dana Corp.	25,000		458,750
Delphi Automotive Systems Corp.	86,252		880,633
Ford Motor Co.(b)	276,695		4,427,120
General Motors Corp.(b)	85,191		4,549,199
Genuine Parts Co.(b)	30,700		1,019,240
Navistar International Corp.(a)(b)	8,800		421,432
PACCAR, Inc.	20,850		1,774,752
Visteon Corp.	24,811		258,283

			14,141,777

Banks and Savings & Loans — 3.7%
AmSouth Bancorporation(b)	58,100		1,423,450
Bank of New York Co., Inc. (The)	115,500		3,825,360
Bank One Corp.	179,872		8,200,365
BankAmerica Corp.(b)	233,461		18,777,268
BB&T Corp.(b)	81,200		3,137,568
Charter One Financial, Inc.	32,487		1,122,426
Comerica, Inc.(b)	26,100		1,463,166
Golden West Financial Corp.	25,400		2,621,026
Huntington Bancshares, Inc.	44,836		1,008,810
JPMorgan Chase & Co.	312,190		11,466,739
KeyCorp Ltd.	68,300		2,002,556
Mellon Financial Corp.	70,800		2,273,388
National City Corp.(b)	92,900		3,153,026
North Fork Bancorporation, Inc.(b)	22,000		890,340
Northern Trust Corp.(b)	32,600		1,513,292
PNC Financial Services Group, Inc. (The)	44,300		2,424,539
Providian Financial Corp.(a)	43,100		501,684
SouthTrust Corp.	56,800		1,859,064
SunTrust Banks, Inc.	46,300		3,310,450
U.S. Bancorp	294,985		8,784,653
Union Planters Corp.(b)	35,700		1,124,193
Wachovia Corp.	211,800		9,867,762


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Banks and Savings & Loans (cont’d.)
Wells Fargo & Co.(b)	263,100	$	15,493,959
Zions Bancorporation	12,000		735,960

			106,981,044

Business Services — 0.1%
Fiserv, Inc.(a)	27,500		1,086,525
Omnicom Group, Inc.(b)	29,100		2,541,303
Robert-Half International, Inc.(a)(b)	26,600		620,844

			4,248,672

Chemicals — 0.7%
Air Products & Chemicals, Inc.	34,700		1,833,201
Dow Chemical Co.(b)	139,031		5,779,518
Du Pont, E.I. de Nemours & Co.	155,820		7,150,580
Eastman Chemical Co.(b)	11,400		450,642
Engelhard Corp.	18,100		542,095
Great Lakes Chemical Corp.(b)	9,700		263,743
Hercules, Inc.(a)(b)	21,500		262,300
Praxair, Inc.	52,400		2,001,680
Rohm & Haas Co.	33,511		1,431,255
Sigma-Aldrich Corp.(b)	14,900		851,982

			20,566,996

Commercial Services — 0.1%
Concord EFS, Inc.(a)(b)	74,000		1,098,160
Convergys Corp.(a)	22,000		384,120
Deluxe Corp.	10,100		417,433

			1,899,713

Computers — 1.8%
Apple Computer, Inc.(a)	51,600		1,102,692
Dell, Inc.(a)	402,300		13,662,108
Gateway, Inc.(a)	48,800		224,480
Hewlett-Packard Co.	472,248		10,847,537
International Business Machines Corp.	267,400		24,782,632
NCR Corp.(a)(b)	14,700		570,360
Sun Microsystems, Inc.(a)	493,000		2,213,570

			53,403,379

Computer Services — 4.3%
Adobe Systems, Inc.(b)	37,200		1,461,960
Autodesk, Inc.	24,400		599,752
Automatic Data Processing, Inc.	96,800		3,834,248
BMC Software, Inc.(a)	37,900		706,835
Cisco Systems, Inc.(a)	1,083,300		26,313,357
Citrix Systems, Inc.(a)	31,800		674,478
Computer Associates International, Inc.(b)	87,900		2,403,186
Computer Sciences Corp.(a)(b)	28,800		1,273,824
Compuware Corp.(a)	59,000		356,360
Comverse Technology, Inc.(a)(b)	23,500		413,365
Electronic Arts, Inc.(a)(b)	42,200		2,016,316
Electronic Data Systems Corp.(b)	71,600		1,757,064
EMC Corp.(a)(b)	363,350		4,694,482
First Data Corp.(b)	119,800		4,922,582
Intuit, Inc.(a)(b)	30,000		1,587,300
Mercury Interactive Corp.(a)(b)	13,000		632,320

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Computer Services (cont’d.)
Microsoft Corp.	1,676,000	$	46,157,040
Network Appliance, Inc.(a)(b)	51,700		1,061,401
Novell, Inc.(a)(b)	55,200		580,704
Oracle Corp.(a)	829,800		10,953,360
Parametric Technology Corp.(a)	49,200		193,848
Peoplesoft, Inc.(a)	52,200		1,190,160
Siebel Systems, Inc.(a)	66,800		926,516
SunGuard Data Systems, Inc.(a)	40,000		1,108,400
Symantec Corp.(a)(b)	44,000		1,524,600
Symbol Technologies, Inc.	31,000		523,590
Unisys Corp.(a)	49,200		730,620
VERITAS Software Corp.(a)(b)	63,048		2,342,864
Yahoo!, Inc.(a)(b)	99,200		4,480,864

			125,421,396

Construction — 0.1%
Centex Corp.(b)	9,200		990,380
Fluor Corp.(b)	11,300		447,932
KB Home(b)	7,200		522,144
Pulte Homes, Inc.	8,600		805,132
Vulcan Materials Co.(b)	16,400		780,148

			3,545,736

Containers — 0.1%
Ball Corp.	8,800		524,216
Bemis Co., Inc.	10,300		515,000
Pactiv Corp.(a)	26,200		626,180
Sealed Air Corp.(a)	12,500		676,750

			2,342,146

Cosmetics & Soaps — 1.2%
Alberto-Culver Co. (Class “B” Stock)	9,100		574,028
Avon Products, Inc.	37,900		2,557,871
Colgate-Palmolive Co.	86,400		4,324,320
Gillette Co.	163,600		6,009,028
International Flavors & Fragrances, Inc.	17,100		597,132
Procter & Gamble Co. (The)	200,000		19,976,000

			34,038,379

Diversified Consumer Products — 0.7%
Altria Group, Inc.	318,700		17,343,654
Eastman Kodak Co.(b)	47,800		1,227,026
Fortune Brands, Inc.	24,900		1,780,101

			20,350,781

Diversified Office Equipment — 0.2%
Avery Dennison Corp.	18,100		1,013,962
Lexmark International, Inc.(a)	19,433		1,528,211
Pitney Bowes, Inc.	37,300		1,515,126
Xerox Corp.(a)(b)	121,100		1,671,180

			5,728,479

Diversified Operations — 1.8%
Cendant Corp.(a)(b)	158,200		3,523,114
General Electric Co.	1,558,000		48,266,840

			51,789,954

Drugs & Medical Supplies — 6.6%
Abbott Laboratories	242,200		11,286,520
Allergan, Inc.	21,500		1,651,415


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
AmerisourceBergen Corp.(b)	15,700	$	881,555
Amgen, Inc.(a)	198,260		12,252,468
Bard (C.R.), Inc.(b)	9,400		763,750
Bausch & Lomb, Inc.(b)	8,900		461,910
Baxter International, Inc.(b)	92,800		2,832,256
Becton Dickinson & Co.	40,900		1,682,626
Biogen Idec, Inc.(a)	49,990		1,838,632
Biomet, Inc.	44,100		1,605,681
Boston Scientific Corp.(a)	128,400		4,719,984
Bristol-Myers Squibb Co.	297,300		8,502,780
Cardinal Health, Inc.(b)	69,550		4,253,678
Chiron Corp.(a)(b)	28,500		1,624,215
Express Scripts, Inc.(a)	10,000		664,300
Forest Laboratories, Inc.(a)	56,200		3,473,160
Genzyme Corp.(a)(b)	34,200		1,687,428
Guidant Corp.	46,200		2,781,240
Johnson & Johnson	460,448		23,786,744
King Pharmaceuticals, Inc.(a)(b)	33,666		513,743
Lilly (Eli) & Co.	173,100		12,174,123
Medco Health Solutions, Inc.(a)	42,149		1,432,644
MedImmune, Inc.(a)	37,700		957,580
Medtronic, Inc.	187,400		9,109,514
Merck & Co., Inc.	349,500		16,146,900
Pfizer, Inc.	1,193,945		42,182,077
Quest Diagnostics, Inc.(b)	15,000		1,096,650
Schering-Plough Corp.	226,500		3,938,835
St. Jude Medical, Inc.(a)(b)	28,200		1,730,070
Stryker Corp.	30,700		2,609,807
Watson Pharmaceuticals, Inc.(a)	15,900		731,400
Wyeth	204,900		8,698,005
Zimmer Holdings, Inc.(a)	35,400		2,492,160

			190,563,850

Education — 0.1%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	26,900		1,829,200

Electronics — 2.7%
Advanced Micro Devices, Inc.(a)(b)	51,400		765,860
Altera Corp.(a)	58,000		1,316,600
Analog Devices, Inc.	56,700		2,588,355
Applied Materials, Inc.(a)(b)	257,300		5,776,385
Applied Micro Circuits Corp.(a)	40,000		239,200
Broadcom Corp. (Class “A” Stock)(a)(b)	46,000		1,568,140
Emerson Electric Co.	63,800		4,131,050
Intel Corp.	1,016,200		32,721,640
Jabil Circuit, Inc.(a)(b)	29,000		820,700
KLA-Tencor Corp.(a)	29,300		1,719,031
Linear Technology Corp.(b)	47,100		1,981,497
LSI Logic Corp.(a)	57,200		507,364
Maxim Integrated Products, Inc.	50,000		2,490,000
Micron Technology, Inc.(a)	89,800		1,209,606
Molex, Inc.(b)	30,800		1,074,612
National Semiconductor Corp.(a)	27,000		1,064,070
Novellus Systems, Inc.(a)(b)	22,000		925,100
NVIDIA Corp.(a)(b)	24,000		558,000
PMC-Sierra, Inc.(a)(b)	23,000		463,450

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Electronics (cont’d.)
QLogic Corp.(a)(b)	13,800	$	712,080
Rockwell Automation, Inc.	29,100		1,035,960
Sanmina-SCI Corp.(a)	73,000		920,530
Solectron Corp.(a)	117,900		696,789
Tektronix, Inc.(a)	19,600		619,360
Teradyne, Inc.(a)(b)	27,300		694,785
Texas Instruments, Inc.	268,700		7,894,406
Thomas & Betts Corp.(b)	12,700		290,703
Xilinx, Inc.(a)(b)	52,300		2,026,102

			76,811,375

Financial Services — 5.2%
Ambac Financial Group, Inc.(b)	15,900		1,103,301
American Express Co.	204,400		9,858,212
Bear Stearns Companies, Inc. (The)(b)	16,016		1,280,479
Capital One Financial, Inc.(b)	33,100		2,028,699
Citigroup, Inc.	802,158		38,936,750
Countrywide Financial Corp.(b)	26,800		2,032,780
Equifax, Inc.(b)	24,500		600,250
Fannie Mae(b)	154,200		11,574,252
Federated Investors, Inc. (Class “B” Stock)	12,000		352,320
Fifth Third Bancorp(b)	90,621		5,355,701
First Tennessee National Corp.	17,000		749,700
FleetBoston Financial Corp.	163,814		7,150,481
Franklin Resources, Inc.(b)	39,900		2,077,194
Freddie Mac	109,000		6,356,880
Goldman Sachs Group, Inc.(b)	73,200		7,227,036
H&R Block, Inc.	30,100		1,666,637
Janus Capital Group, Inc.(b)	38,400		630,144
John Hancock Financial Services, Inc.	42,000		1,575,000
Lehman Brothers Holdings, Inc.(b)	41,300		3,189,186
Marshall & Ilsley Corp.	31,000		1,185,750
MBNA Corp.	193,625		4,811,581
Merrill Lynch & Co., Inc.	147,000		8,621,550
Moody’s Corp.	27,500		1,665,125
Morgan Stanley(b)	169,880		9,830,956
Paychex, Inc.(b)	58,300		2,168,760
Principal Financial Group, Inc.	49,000		1,620,430
Regions Financial Corp.	37,700		1,402,440
Schwab (Charles) Corp.(b)	201,350		2,383,984
SLM Corp.	74,100		2,792,088
State Street Corp.(b)	48,800		2,541,504
Synovus Financial Corp.(b)	48,250		1,395,390
T. Rowe Price Group, Inc.(b)	16,100		763,301
Washington Mutual, Inc.	145,817		5,850,178

			150,778,039

Food & Beverage — 2.3%
Anheuser Busch Cos., Inc.	132,900		7,001,172
Archer Daniels Midland Co.	101,026		1,537,616
Brown-Forman Corp. (Class “B” Stock)	10,500		981,225
Campbell Soup Co.(b)	64,200		1,720,560
Coca-Cola Co.	381,800		19,376,350
Coca-Cola Enterprises, Inc.	72,100		1,576,827
ConAgra Foods, Inc.	79,400		2,095,366
Coors (Adolph) Co. (Class “B” Stock)(b)	6,600		370,260


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Food & Beverage (cont’d.)
General Mills, Inc.	56,900	$	2,577,570
Heinz (HJ) & Co.	53,600		1,952,648
Hershey Foods Corp.	22,300		1,716,877
Kellogg Co.(b)	63,200		2,406,656
McCormick & Co., Inc.(b)	18,000		541,800
Pepsi Bottling Group, Inc.	40,000		967,200
PepsiCo, Inc.	269,330		12,556,164
Sara Lee Corp.	124,400		2,700,724
Sysco Corp.(b)	100,800		3,752,784
Wrigley (William) Jr. Co.	36,000		2,023,560

			65,855,359

Forest Products — 0.3%
Boise Cascade Corp.	8,100		266,166
Georgia-Pacific Corp.	37,095		1,137,704
International Paper Co.	72,073		3,107,067
Louisiana-Pacific Corp.(a)	14,500		259,260
MeadWestvaco Corp.	32,814		976,216
Plum Creek Timber Co., Inc.	27,500		837,375
Temple-Inland, Inc.	10,500		658,035
Weyerhaeuser Co.(b)	35,500		2,272,000

			9,513,823

Gas Pipelines — 0.1%
Dynegy, Inc. (Class “A” Stock)(b)	49,000		209,720
Kinder Morgan, Inc.	19,100		1,128,810
People’s Energy Corp.(b)	6,400		269,056
Sempra Energy(b)	34,719		1,043,653
Williams Companies, Inc. (The)(b)	72,700		713,914

			3,365,153

Hospitals/Hospital Management — 0.6%
Anthem, Inc.(a)(b)	21,700		1,627,500
HCA, Inc.(b)	81,100		3,484,056
Health Management Associates, Inc. (Class “A” Stock)(b)	31,000		744,000
Humana, Inc.(a)	30,000		685,500
IMS Health, Inc.	45,200		1,123,672
Manor Care, Inc.(b)	17,000		587,690
McKesson Corp.(b)	44,530		1,432,085
Tenet Healthcare Corp.(a)	76,500		1,227,825
UnitedHealth Group, Inc.(b)	95,800		5,573,644
WellPoint Health Networks, Inc.(a)	21,900		2,124,081

			18,610,053

Household Products & Personal Care — 0.3%
Clorox Co.	36,100		1,753,016
Kimberly-Clark Corp.	81,600		4,821,744
Leggett & Platt, Inc.(b)	30,400		657,552

			7,232,312

Housing Related — 0.4%
Lowe’s Companies, Inc.	120,900		6,696,651
Masco Corp.	75,600		2,072,196
Maytag Corp.	13,600		378,760
Newell Rubbermaid, Inc.(b)	44,614		1,015,861
Stanley Works (The)	13,200		499,884
Tupperware Corp.	7,000		121,380
Whirlpool Corp.(b)	11,400		828,210

			11,612,942

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Instrument – Controls — 0.2%
Agilent Technologies, Inc.(a)	71,593	$	2,093,379
Applera Corp.-Applied Biosystems Group(b)	33,000		683,430
Johnson Controls, Inc.	13,500		1,567,620
PerkinElmer, Inc.	17,200		293,604
Thermo Electron Corp.(a)	33,700		849,240
Waters Corp. (Bermuda)(a)(b)	18,000		596,880

			6,084,153

Insurance — 2.4%
ACE Ltd. (Bermuda)	39,900		1,652,658
Aetna, Inc.(b)	23,100		1,561,098
AFLAC, Inc.	82,200		2,973,996
Allstate Corp.	113,400		4,878,468
American International Group, Inc.	403,788		26,763,069
Aon Corp.(b)	42,600		1,019,844
Chubb Corp.(b)	28,600		1,947,660
CIGNA Corp.	23,000		1,322,500
Cincinnati Financial Corp.	27,000		1,130,760
Hartford Financial Services Group, Inc.	41,800		2,467,454
Jefferson-Pilot Corp.	24,000		1,215,600
Lincoln National Corp.	30,600		1,235,322
Loews Corp.(b)	30,800		1,523,060
Marsh & McLennan Companies, Inc.(b)	83,800		4,013,182
MBIA, Inc.(b)	23,250		1,377,097
MetLife, Inc.	116,700		3,929,289
MGIC Investment Corp.(b)	16,900		962,286
Progressive Corp.	35,100		2,934,009
SAFECO Corp.(b)	23,900		930,427
St. Paul Companies, Inc.(b)	33,200		1,316,380
Torchmark Corp.	20,300		924,462
Travelers Property Casualty Corp. (Class “B” Stock)	149,597		2,538,661
UnumProvident Corp.(b)	39,010		615,188
XL Capital, Ltd. (Class “A” Stock) (Bermuda)	20,500		1,589,775

			70,822,245

Internet Services — 0.2%
eBay, Inc.(a)(b)	99,300		6,413,787
Monster Worldwide, Inc.(a)(b)	13,000		285,480

			6,699,267

Leisure — 0.6%
Brunswick Corp.	16,900		537,927
Carnival Corp.(b)	94,400		3,750,512
Disney (Walt) Co.(b)	317,700		7,411,941
Harrah’s Entertainment, Inc.	20,800		1,035,216
Hilton Hotels Corp.(b)	57,500		984,975
International Game Technology Corp.	50,000		1,785,000
Marriott International, Inc. (Class “A” Stock)	38,300		1,769,460
Starwood Hotels & Resorts Worldwide, Inc.	27,000		971,190

			18,246,221


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Machinery — 0.5%
American Power Conversion Corp.	29,000	$	709,050
Caterpillar, Inc.(b)	55,200		4,582,704
Deere & Co.	36,900		2,400,345
Dover Corp.	31,300		1,244,175
Eaton Corp.	11,500		1,241,770
Ingersoll-Rand Co. (Class “A” Stock) (Bermuda)	26,600		1,805,608
Parker Hannifin Corp.(b)	20,010		1,190,595
Snap-On, Inc.	8,900		286,936

			13,461,183

Manufacturing — 0.5%
American Standard Co., Inc.(a)	10,600		1,067,420
Cooper Industries, Ltd. (Class “A” Stock)	15,900		921,087
Illinois Tool Works, Inc.	47,200		3,960,552
Power-One, Inc.(a)	5,000		54,150
Tyco International Ltd. (Bermuda)(b)	309,361		8,198,066

			14,201,275

Media — 1.9%
Clear Channel Communications, Inc.(b)	92,100		4,313,043
ComCast Corp. (Class “A” Stock)(a)	353,260		11,611,656
Donnelley (R.R.) & Sons Co.	18,800		566,820
Dow Jones & Co., Inc.(b)	14,400		717,840
Gannett Co., Inc.	42,500		3,789,300
Interpublic Group of Companies, Inc. (The)(b)	57,200		892,320
Knight-Ridder, Inc.(b)	13,600		1,052,232
McGraw Hill Companies, Inc. (The)	30,900		2,160,528
Meredith Corp.(b)	10,200		497,862
New York Times Co. (The) (Class “A” Stock)	25,500		1,218,645
Time Warner, Inc.(a)(b)	694,600		12,495,854
Tribune Co.	48,150		2,484,540
Univision Communications, Inc.(a)	47,000		1,865,430
Viacom, Inc. (Class “B” Stock)	269,069		11,941,282

			55,607,352

Metals – Ferrous — 0.1%
Allegheny Technologies, Inc.	14,200		187,724
Nucor Corp.	12,700		711,200
United States Steel Corp.(b)	13,200		462,264
Worthington Industries, Inc.(b)	11,400		205,542

			1,566,730

Metals – Non Ferrous — 0.2%
Alcoa, Inc.(b)	131,840		5,009,920

Mineral Resources
Phelps Dodge Corp.(a)	12,893		981,028

Miscellaneous Basic Industry — 0.4%
AES Corp.(a)	96,200		908,128
Crane Co.	10,800		331,992
Danaher Corp.(b)	23,800		2,183,650
Ecolab, Inc.	46,600		1,275,442
Grainger (W.W.), Inc.	15,500		734,545

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Miscellaneous Basic Industry (cont’d.)
ITT Industries, Inc.	13,500	$	1,001,835
Millipore Corp.(a)(b)	8,200		353,010
Monsanto Co.	35,497		1,021,604
Pall Corp.(b)	22,000		590,260
PPG Industries, Inc.	26,100		1,670,922
Textron, Inc.	24,000		1,369,440

			11,440,828

Miscellaneous – Consumer Growth/Staple — 0.4%
3M Co.	121,400		10,322,642
American Greetings Corp. (Class “A” Stock)(a)(b)	9,800		214,326
Black & Decker Corp.	15,500		764,460

			11,301,428

Motorcycles — 0.1%
Harley-Davidson, Inc.(b)	47,300		2,248,169

Oil & Gas — 2.5%
Amerada Hess Corp.	15,100		802,867
Anadarko Petroleum Corp.	38,727		1,975,465
Ashland, Inc.	12,600		555,156
BJ Services Co.(a)	22,800		818,520
ChevronTexaco Corp.	164,836		14,240,182
ConocoPhillips	104,225		6,834,033
EOG Resources, Inc.	17,500		807,975
Exxon Mobil Corp.	1,036,740		42,506,340
Kerr-McGee Corp.	16,525		768,247
KeySpan Corp.	24,700		908,960
Nabors Industries, Ltd.(a)(b)	19,000		788,500
NICOR, Inc.	7,100		241,684
Sunoco, Inc.	15,600		797,940
Unocal Corp.	40,100		1,476,883

			73,522,752

Oil & Gas Exploration & Production — 0.3%
Burlington Resources, Inc.(b)	34,100		1,888,458
Devon Energy Corp.	34,400		1,969,744
Marathon Oil Corp.	48,500		1,604,865
Occidental Petroleum Corp.	56,900		2,403,456
Transocean Sedco Forex, Inc.(a)(b)	45,997		1,104,388

			8,970,911

Oil & Gas Services — 0.4%
Apache Corp.	24,457		1,983,463
Baker Hughes, Inc.	51,950		1,670,712
El Paso Corp.(b)	93,236		763,603
Halliburton Co.	65,500		1,703,000
Noble Corp.(a)(b)	18,500		661,930
Rowan Cos., Inc.(a)(b)	15,400		356,818
Schlumberger, Ltd.	89,000		4,870,080

			12,009,606

Precious Metals — 0.1%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	26,000		1,095,380
Newmont Mining Corp.	64,700		3,145,067

			4,240,447


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Railroads — 0.3%
Burlington Northern Santa Fe Corp.	63,500	$	2,054,225
CSX Corp.	34,800		1,250,712
Norfolk Southern Corp.	64,200		1,518,330
Union Pacific Corp.	37,800		2,626,344

			7,449,611

Real Estate Investment Trust — 0.2%
Apartment Investment & Management Co. (Class “A” Stock)	13,300		458,850
Equity Office Properties Trust	59,000		1,690,350
Equity Residential Properties Trust(b)	41,600		1,227,616
ProLogis	27,600		885,684
Simon Property Group, Inc.(b)	28,900		1,339,226

			5,601,726

Restaurants — 0.3%
Darden Restaurants, Inc.	30,150		634,356
McDonald’s Corp.	203,300		5,047,939
Starbucks Corp.(a)	57,000		1,884,420
Wendy’s International, Inc.	18,400		722,016
Yum! Brands, Inc.(a)	47,800		1,644,320

			9,933,051

Retail — 3.5%
Albertson’s, Inc.(b)	61,766		1,399,000
AutoNation, Inc.(a)(b)	35,000		642,950
AutoZone, Inc.(a)(b)	15,200		1,295,192
Bed Bath & Beyond, Inc.(a)	42,200		1,829,370
Best Buy Co., Inc.	47,750		2,494,460
Big Lots, Inc.(a)	20,100		285,621
Circuit City Stores, Inc.	33,100		335,303
Costco Wholesale Corp.(a)(b)	68,100		2,531,958
CVS Corp.	59,500		2,149,140
Dillard’s, Inc.	17,200		283,112
Dollar General Corp.	56,756		1,191,308
Family Dollar Stores, Inc.	23,000		825,240
Federated Department Stores, Inc.(b)	33,100		1,560,003
Gap, Inc. (The)(b)	133,400		3,096,214
Home Depot, Inc.	359,150		12,746,234
J.C. Penney Corp., Inc.(b)	40,900		1,074,852
Kohl’s Corp.(a)(b)	51,300		2,305,422
Kroger Co.(a)	125,146		2,316,452
Limited Brands, Inc.	74,506		1,343,343
Liz Claiborne, Inc.	16,800		595,728
May Department Stores Co.(b)	48,600		1,412,802
Nordstrom, Inc.(b)	21,800		747,740
Office Depot, Inc.(a)(b)	53,200		888,972
RadioShack Corp.(b)	32,000		981,760
Safeway, Inc.(a)(b)	75,800		1,660,778
Sears, Roebuck & Co.(b)	43,100		1,960,619
Sherwin-Williams Co.	25,400		882,396
Staples, Inc.(a)(b)	74,900		2,044,770
SUPERVALU, Inc.	24,000		686,160
Target Corp.	137,400		5,276,160
Tiffany & Co.	20,000		904,000
TJX Cos., Inc.(b)	88,000		1,940,400
Toys ‘R’ Us, Inc.(a)	38,900		491,696

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Retail (cont’d.)
Wal-Mart Stores, Inc.	678,900	$	36,015,645
Walgreen Co.	157,800		5,740,764
Winn-Dixie Stores, Inc.(b)	25,100		249,745

			102,185,309

Rubber
B.F. Goodrich Co.	16,200		480,978
Cooper Tire & Rubber Co.	11,200		239,456
Goodyear Tire & Rubber Co. (The)(a)	24,500		192,570

			913,004

Telecommunications — 2.6%
ADC Telecommunications, Inc.(a)	103,400		307,098
ALLTEL Corp.	47,400		2,207,892
Andrew Corp.(a)(b)	27,700		318,827
AT&T Corp.(b)	116,204		2,358,941
AT&T Wireless Services, Inc.(a)(b)	419,101		3,348,617
Avaya, Inc.(a)(b)	57,670		746,250
BellSouth Corp.	292,200		8,269,260
CenturyTel, Inc.(b)	22,400		730,688
CIENA Corp.(a)(b)	64,000		424,960
Citizens Communications Co.(a)(b)	36,000		447,120
Corning, Inc.(a)	202,400		2,111,032
JDS Uniphase Corp.(a)(b)	207,000		755,550
Lucent Technologies, Inc.(a)(b)	624,055		1,772,316
Motorola, Inc.(b)	361,225		5,082,436
Nextel Communications, Inc. (Class “A” Stock)(a)	167,400		4,697,244
QUALCOMM, Inc.(b)	122,200		6,590,246
Qwest Communications International, Inc.(a)(b)	248,357		1,072,902
SBC Communications, Inc.(b)	519,108		13,533,146
Scientific-Atlanta, Inc.	24,100		657,930
Sprint Corp.(b)	136,700		2,244,614
Sprint Corp. (PCS Group)(a)(b)	139,200		782,304
Tellabs, Inc.(a)	60,600		510,858
Verizon Communications, Inc.	426,976		14,978,318

			73,948,549

Textiles
VF Corp.	19,100		825,884

Tobacco — 0.1%
R.J. Reynolds Tobacco Holdings, Inc.(b)	11,000		639,650
UST, Inc.(b)	26,100		931,509

			1,571,159

Toys — 0.1%
Hasbro, Inc.(b)	30,700		653,296
Mattel, Inc.	64,951		1,251,606

			1,904,902


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Travel Services
Sabre Holdings Corp.	23,526	$	507,926

Trucking/Shipping — 0.6%
FedEx Corp.	44,900		3,030,750
Ryder System, Inc.	11,500		392,725
United Parcel Service, Inc.(b)	174,800		13,031,340

			16,454,815

Utilities – Electric & Gas — 1.3%
Allegheny Energy, Inc.(a)	15,000		191,400
Ameren Corp.(b)	24,000		1,104,000
American Electric Power Co., Inc.	59,160		1,804,972
Calpine Corp.(a)(b)	49,000		235,690
CenterPoint Energy, Inc.(b)	46,200		447,678
Cinergy Corp.	27,300		1,059,513
CMS Energy Corp.(a)	21,000		178,920
Consolidated Edison, Inc.(b)	34,100		1,466,641
Constellation Energy Group	25,900		1,014,244
Dominion Resources, Inc.(b)	49,216		3,141,457
DTE Energy Co.(b)	25,300		996,820
Duke Energy Co.	138,100		2,824,145
Edison International	55,500		1,217,115
Entergy Corp.	35,400		2,022,402
Exelon Corp.	52,687		3,496,309
FirstEnergy Corp.	50,101		1,763,555
FPL Group, Inc.(b)	27,700		1,812,134
NiSource, Inc.(b)	38,200		838,108
PG&E Corp.(a)(b)	61,900		1,718,963
Pinnacle West Capital Corp.	12,800		512,256
PPL Corp.(b)	27,300		1,194,375
Progress Energy, Inc.(a)	37,583		1,701,007
Public Service Enterprise Group, Inc.(b)	34,600		1,515,480
Southern Co.(b)	111,200		3,363,800
TECO Energy, Inc.(b)	23,000		331,430
TXU Corp.	50,000		1,186,000
Xcel Energy, Inc.	61,910		1,051,232

			38,189,646

Waste Management — 0.1%
Allied Waste Industries, Inc.(a)(b)	45,700		634,316
Waste Management, Inc.	99,242		2,937,563

			3,571,879

TOTAL COMMON STOCKS (cost $1,631,789,273)			1,595,849,061

CONTINGENT VALUE OBLIGATION
Utilities – Electric & Gas
Progress Energy, Inc.(f) (cost $6,909)	14,100		0

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS — 36.1%
Aerospace — 0.4%
Boeing Capital Corp.
6.10%	03/01/11(b)	A3	$	1,125	$	1,214,236
General Dynamics Corp.
4.50%	08/15/10	A2		2,760		2,820,924
Lockheed Martin Corp.
8.20%	12/01/09	Baa2		1,000		1,214,353
Northrop Grumman Corp.
7.125%	02/15/11(b)	Baa3		3,125		3,614,335
Raytheon Co.
4.50%	11/15/07	Baa3		405		410,630
8.30%	03/01/10	Baa3		1,850		2,219,830
United Technologies Corp.
6.35%	03/01/11	A2		990		1,106,031

						12,600,339

Airlines — 0.1%
Continental Airlines, Inc.,
Series 1998-1, Class A
6.65%	09/15/17	Baa3		850		829,957
Series 2000-1, Class A-1
8.048%	11/01/20	Baa3		207		211,801
Delta Airlines, Inc.,
Series 2001-2, Class A-2
7.111%	09/18/11	Baa2		375		378,140
Delta Airlines, Inc.
7.57%	05/18/12(b)	Baa2		1,095		1,134,358

						2,554,256

Asset Backed Securities — 0.5%
Chase Commercial Mortgage Securities Corp.,
Series 1997-1, Class A2
7.37%	06/19/29	AAA(e)		5,698		6,233,854
MBNA Master Credit Card Trust,
Series 1999-J, Class A
7.00%	02/15/12	Aaa		2,370		2,739,445
Series 2000-E, Class A
7.80%	10/15/12	Aaa		3,810		4,590,978

						13,564,277

Autos – Cars & Trucks — 0.8%
Auburn Hills Trust, Inc.
12.375%	05/01/20	A3		1,110		1,599,306
DaimlerChrysler North America Holding Corp.
6.50%	11/15/13	A3		1,210		1,274,626
Equus Cayman Finance Ltd.
5.50%	09/12/08	Ba1		410		415,701
Ford Motor Co.
7.45%	07/16/31(b)	Baa1		1,975		1,995,779
Ford Motor Credit Co.
7.00%	10/01/13(b)	A3		3,195		3,369,700
7.875%	06/15/10	A3		3,425		3,826,975
General Motors Acceptance Corp.
6.125%	01/22/08	A3		1,500		1,609,858
6.875%	09/15/11(b)	A3		2,365		2,547,405
6.875%	08/28/12(b)	A3		1,290		1,387,816
General Motors Corp.
7.20%	01/15/11(b)	Baa1		800		879,589
8.375%	07/15/33(b)	Baa1		1,430		1,659,962


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Autos – Cars & Trucks (cont’d)
Hyundai Motor Manufacturing LLC
5.30%	12/19/08	Ba1	$	650	$	651,944
Lear Corp.
8.11%	05/15/09(b)	Ba1		1,035		1,217,419

						22,436,080

Banks and Savings & Loans — 1.0%
Bank One Corp.
7.875%	08/01/10	A1		2,500		3,003,027
Capital One Bank
6.50%	07/30/04	Baa2		410		421,264
6.50%	06/13/13	Baa3		900		943,572
6.875%	02/01/06(b)	Baa2		2,040		2,206,868
Citigroup, Inc.
5.625%	08/27/12(b)	Aa2		2,900		3,061,362
6.00%	10/31/33(b)	Aa2		985		984,899
6.625%	06/15/32(b)	Aa2		1,290		1,397,440
HBOS PLC (United Kingdom)
6.00%	11/01/33(b)	Aa3		1,440		1,431,539
JPMorgan Chase & Co.
4.50%	11/15/10	A1		1,005		1,012,987
5.25%	05/30/07	A1		660		704,498
5.255%	07/12/37	Aaa		2,750		2,834,592
6.50%	01/15/09	A2		1,100		1,221,856
Santander Central Hispano Issuances Ltd. (Luxembourg)
7.625%	09/14/10	A1		1,005		1,191,350
UFJ Finance Aruba AEC (Aruba)
6.75%	07/15/13	Baa1		1,345		1,434,441
Wachovia Corp.
7.55%	08/18/05	Aa3		1,200		1,308,166
7.80%	08/18/10	Aa3		2,400		2,895,530
Wells Fargo Bank
6.45%	02/01/11	Aa1		2,300		2,582,534

						28,635,925

Cable & Pay Television Systems — 0.1%
Cox Communications, Inc.
4.625%	06/01/13	Baa2		840		809,843
7.125%	10/01/12(b)	Baa2		1,325		1,528,272
Tele-Communications, Inc.
9.875%	06/15/22	Baa3		1,440		1,969,317

						4,307,432

Chemicals — 0.1%
Dow Chemical Co.
5.75%	11/15/09	A3		495		529,972
5.97%	01/15/09	A3		430		462,593
6.00%	10/01/12(b)	A3		876		922,108
Eastman Chemical Co.
7.00%	04/15/12	Baa2		575		635,277
ICI Wilmington, Inc.
5.625%	12/01/13	Baa3		935		939,502

						3,489,452

Collateralized Mortgage Obligations — 0.2%
Washington Mutual, Inc.
4.38%	12/25/32	Aaa		2,500		2,508,375
5.51%	04/26/32	Aaa		2,360		2,394,269

						4,902,644

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Commercial Mortgage Backed Securities — 1.3%
Banc of America Commercial Mortgage, Inc.
4.873%	03/11/41	AAA(e)	$	2,400	$	2,433,651
Greenwich Capital Commercial Funding Corp.
4.533%	12/05/12	Aaa		5,780		5,801,298
JPMorgan Chase & Co. Commercial Mortgage Finance Corp.
7.371%	08/15/32	Aaa		6,500		7,535,558
Keycorp
7.727%	05/17/32	Aaa		11,180		13,137,995
PNC Mortgage Acceptance Corp.
7.33%	12/10/32	AAA(e)		3,860		4,450,874
UBS Commercial Mortgage Trust
4.83%	11/15/27	Aaa		2,720		2,767,827
Wachovia Bank Commercial Mortgage Trust
4.98%	11/15/34	Aaa		1,700		1,728,354

						37,855,557

Computers — 0.1%
Hewlett-Packard Co.
7.15%	06/15/05	A3		320		344,040
International Business Machines Corp.
5.875%	11/29/32	A1		1,475		1,484,120

						1,828,160

Computer Services — 0.1%
Computer Associates International, Inc.
6.375%	04/15/05	Baa3		760		794,470
Computer Sciences Corp.
6.75%	06/15/06	A2		395		433,177
Electronic Data Systems Corp.
6.00%	08/01/13	Baa3		1,075		1,056,333
6.85%	10/15/04(b)	Baa3		515		532,955

						2,816,935

Containers — 0.1%
Pactiv Corp.
7.95%	12/15/25	Baa2		2,650		3,153,588
Sealed Air Corp.
5.625%	07/15/13	Baa3		460		470,714
6.875%	07/15/33	Baa3		335		354,596
8.75%	07/01/08	Baa3		350		417,019

						4,395,917

Diversified Operations — 0.2%
Alcan, Inc.
5.20%	01/15/14	Baa1		500		505,390
6.125%	12/15/33(b)	Baa1		1,170		1,177,128
Bombardier, Inc. (Canada)
6.75%	05/01/12(b)	Baa3		1,415		1,545,888
Cendant Corp.
6.875%	08/15/06	Baa1		1,715		1,881,599
Honeywell International, Inc.
6.125%	11/01/11	A2		1,420		1,561,443

						6,671,448

Drugs & Medical Supplies — 0.4%
Bristol-Myers Squibb Co.
5.75%	10/01/11	A1		760		821,273


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Drugs & Medical Supplies (cont’d.)
Pharmacia Corp.
6.50%	12/01/18	Aaa	$	1,145	$	1,330,459
6.60%	12/01/28	Aaa		1,150		1,294,997
6.75%	12/15/27	Aaa		1,235		1,413,819
Schering-Plough Corp.
5.30%	12/01/13(b)	A3		1,770		1,800,884
6.50%	12/01/33	A3		660		686,556
Wyeth
5.50%	02/01/14(b)	Baa1		2,385		2,412,225
6.45%	02/01/24	Baa1		840		860,836

						10,621,049

Financial Services — 0.8%
Capital One Financial, Corp.
6.25%	11/15/13	Baa3		690		707,382
CIT Group, Inc.
5.50%	11/30/07(b)	A2		1,285		1,375,820
Enterprise Rent-A-Car USA Finance Co., M.T.N.
6.95%	03/01/04	Baa1		7,500		7,560,705
Equifax, Inc.
4.95%	11/01/07	Baa1		475		496,810
General Electric Capital Corp., M.T.N.
5.875%	02/15/12	Aaa		510		548,115
6.125%	02/22/11	Aaa		3,865		4,251,948
6.75%	03/15/32	Aaa		2,700		2,989,227
Household Finance Corp.
6.375%	11/27/12	A1		225		246,837
6.75%	05/15/11	A1		570		641,674
7.00%	05/15/12	A1		1,770		2,018,451
Pemex Finance Ltd. (Cayman Islands)
9.14%	08/15/04	Baa1		1,950		1,981,414

						22,818,383

Food & Beverage — 0.8%
Anheuser-Busch Companies, Inc.
6.00%	04/15/11	A1		2,000		2,224,838
Bunge Ltd. Finance Corp.
5.875%	05/15/13	Baa3		1,765		1,786,395
Cadbury Schweppes American Finance, Inc.
3.875%	10/01/08(b)	Baa2		1,050		1,045,232
5.125%	10/01/13	Baa2		1,120		1,112,707
ConAgra Foods, Inc.
7.875%	09/15/10	Baa1		865		1,032,091
General Mills, Inc.
5.125%	02/15/07	Baa2		500		531,129
Kellogg Co.
6.60%	04/01/11	Baa2		2,435		2,728,885
Kraft Foods, Inc.
4.625%	11/01/06(b)	A3		3,405		3,553,213
5.25%	06/01/07(b)	A3		400		425,561
5.625%	11/01/11	A3		3,150		3,318,985
Miller Brewing Co.
5.50%	08/15/13(b)	Baa1		1,010		1,031,859
SABMiller PLC (United Kingdom)
6.625%	08/15/33	Baa1		1,220		1,289,805

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Food & Beverage (cont’d.)
Tyson Foods, Inc.
6.625%	10/17/05	Baa3	$	485	$	506,724
7.25%	10/01/06	Baa3		525		575,312
Unilever Capital Corp.
5.90%	11/15/32	A1		1,135		1,137,723

						22,300,459

Forest Products — 0.1%
MeadWestvaco Corp.
2.75%	12/01/05	Baa2		1,310		1,298,928
Weyerhaeuser Co.
5.50%	03/15/05(b)	Baa2		850		884,897
7.375%	03/15/32	Baa2		900		978,572

						3,162,397

Hospitals/Hospital Management — 0.1%
HCA, Inc.
7.875%	02/01/11	Ba1		2,000		2,281,022

Industrial — 0.1%
CRH America, Inc.
5.30%	10/15/13	Baa1		1,280		1,291,516
6.40%	10/15/33	Baa1		640		654,545

						1,946,061

Insurance — 0.1%
Aon Corp.
8.65%	05/15/05	Baa2		965		1,043,373
Axa (France)
8.60%	12/15/30	A3		230		289,913
Commerce Group, Inc.
5.95%	12/09/13	Baa2		435		441,159
MetLife, Inc.
6.125%	12/01/11	A2		435		474,410
RLI Corp.
5.95%	01/15/14	Baa3		520		517,791
Royal & Sun Alliance Insurance Group PLC (United Kingdom)
8.95%	10/15/29(b)	Ba2		330		320,885
UnumProvident Corp.
7.625%	03/01/11	Baa3		250		275,407

						3,362,938

Investment Bankers — 0.4%
Credit Suisse First Boston, Inc.
5.50%	08/15/13(b)	Aa3		2,260		2,328,964
Lehman Brothers Holdings, Inc.
6.625%	01/18/12	A1		1,800		2,031,329
Lehman Brothers, Inc.
6.625%	04/01/04(b)	A1		7,000		7,091,434
Morgan Stanley
3.625%	04/01/08(b)	Aa3		1,390		1,391,964

						12,843,691

Leisure — 0.1%
Carnival Corp.
3.75%	11/15/07(b)	A3		1,860		1,863,324
Carnival PLC (United Kingdom)
7.30%	06/01/07	Baa3		345		383,337


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Leisure (cont’d.)
Harrah’s Operating Co., Inc.
7.125%	06/01/07	Baa3	$	365	$	406,460
International Game Technology
7.875%	05/15/04(b)	Baa3		500		510,415

						3,163,536

Machinery — 0.2%
Caterpillar, Inc.
7.25%	09/15/09	A2		2,400		2,807,926
John Deere Capital Corp.
7.00%	03/15/12(b)	A3		2,170		2,499,816

						5,307,742

Media — 0.6%
AOL Time Warner, Inc.
7.625%	04/15/31	Baa1		3,300		3,807,434
7.70%	05/01/32	Baa1		200		233,421
Clear Channel Communications, Inc.
4.40%	05/15/11	Baa3		1,200		1,171,709
8.00%	11/01/08	Ba1		745		862,337
ComCast Corp.
5.30%	01/15/14(b)	Baa3		1,100		1,096,347
7.05%	03/15/33(b)	Baa3		805		875,689
Disney (Walt) Co.
5.375%	06/01/07	Baa1		300		320,785
6.75%	03/30/06	Baa1		1,365		1,484,637
Liberty Media Corp.
5.70%	05/15/13(b)	Baa3		1,105		1,117,448
News America Holdings, Inc.
7.625%	11/30/28	Baa3		1,360		1,575,363
8.50%	02/15/05	Baa3		1,800		1,916,082
United News & Media PLC (United Kingdom)
7.25%	07/01/04	Baa2		2,900		2,950,231
Viacom, Inc.
7.875%	07/30/30	A3		1,175		1,461,618

						18,873,101

Municipals — 0.3%
Illinois St. Taxable Pension, G.O.
5.10%	06/01/33	Aa3		8,800		8,049,184

Oil & Gas — 0.3%
BJ Services Co.
7.00%	02/01/06	Baa2		4,000		4,273,820
Parker & Parsley Petroleum Co.
8.875%	04/15/05	Ba1		1,375		1,471,592
Valero Energy Corp.
6.875%	04/15/12	Baa3		1,985		2,196,599

						7,942,011

Oil & Gas Exploration & Production — 1.0%
Anadarko Finance Co.
7.50%	05/01/31	Baa1		285		333,872
Chesapeake Energy Corp.
8.125%	04/01/11	Ba3		30		33,300
Conoco, Inc.
6.95%	04/15/29	A3		755		856,200
ConocoPhillips
8.75%	05/25/10	A3		3,400		4,247,283

SEE NOTES TO FINANCIAL STATEMENTS.




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Oil & Gas Exploration & Production (cont’d.)
Devon Energy Corp.
2.75%	08/01/06	Baa2	$	2,810	$	2,811,307
Devon Financing Corp.
6.875%	09/30/11(b)	Baa2		260		294,820
Halliburton Co.
2.65%	10/17/05	Baa2		490		495,330
5.50%	10/15/10	Baa2		1,130		1,181,773
7.60%	08/15/96	Baa2		272		293,987
Kerr-McGee Corp.
5.875%	09/15/06	Baa3		1,305		1,400,396
Marathon Oil Corp.
6.125%	03/15/12(b)	Baa1		600		648,868
Occidental Petroleum Corp.
6.75%	01/15/12(b)	Baa1		1,655		1,866,646
7.65%	02/15/06	Baa1		1,615		1,769,735
Ocean Energy, Inc.
7.25%	10/01/11	Baa3		240		276,211
Pemex Project Funding Master Trust,
7.875%	02/01/09	Baa1		2,275		2,568,475
8.50%	02/15/08	Baa1		1,100		1,254,000
Petroleos Mexicanos (Mexico)
9.25%	03/30/18	Baa1		1,120		1,304,800
9.50%	09/15/27(b)	Baa1		3,025		3,599,750
Suncor Energy, Inc. (Canada)
5.95%	12/01/34	A3		580		575,743
Transocean, Inc.
7.50%	04/15/31	Baa2		185		211,857
Woodside Petroleum Ltd. (Australia)
5.00%	11/15/13	Baa1		1,800		1,804,012

						27,828,365

Real Estate Investment Trust — 0.6%
EOP Operating LP
6.50%	06/15/04	Baa1		6,000		6,132,312
6.63%	04/13/05	Baa1		5,000		5,298,635
Simon Debartolo Group, Inc.
6.75%	06/15/05	Baa2		5,000		5,323,120

						16,754,067

Retail — 0.5%
Albertson’s, Inc.
7.50%	02/15/11(b)	Baa2		730		836,839
Kroger Co.
7.25%	06/01/09	Baa3		2,900		3,303,723
May Department Stores Co.
6.90%	01/15/32	Baa1		280		301,567
Safeway, Inc.
2.50%	11/01/05	Baa2		1,800		1,782,569
Saks, Inc.
7.00%	12/01/13	B1		23		23,460
Target Corp.
5.95%	05/15/06	A2		1,200		1,297,103
7.50%	07/15/06	A2		350		392,488
7.50%	08/15/10	A2		855		1,013,887
Toys ‘R’ Us, Inc.
7.375%	10/15/18(b)	Baa3		195		194,863


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Retail (cont’d.)
Wal-Mart Stores, Inc.
6.875%	08/10/09	Aa2	$	2,095	$	2,413,543
7.55%	02/15/30	Aa2		1,270		1,562,972

						13,123,014

Structured Notes — 0.1%
Dow Jones TRAC-X North America High Yield Ser. 2, T1
7.375%	03/25/09(b)	B3		1,100		1,146,750
Dow Jones TRAC-X North America High Yield Ser. 2, T2
6.05%	03/25/09(b)	Ba3		1,300		1,330,875
Lehman Brothers, Inc.,
TRAINS HY-2003-1(h)
8.48%	05/15/13	B1		990		1,093,504

						3,571,129

Telecommunications — 1.4%
AT&T Corp.
7.25%	11/15/06(g)	Baa2		800		884,669
8.00%	11/15/31	Baa2		880		1,028,335
AT&T Wireless Services, Inc.
7.35%	03/01/06	Baa2		2,245		2,454,970
8.75%	03/01/31	Baa2		705		869,850
British Telecommunications PLC (United Kingdom)
7.00%	05/23/07	Baa1		1,400		1,563,800
8.625%	12/15/30(g)	Baa1		1,440		1,882,950
CenturyTel, Inc.
7.875%	08/15/12	Baa2		1,550		1,835,860
Citizens Communications Co.
8.50%	05/15/06(b)	Baa2		2,325		2,538,577
9.25%	05/15/11	Baa2		505		597,033
Deutsche Telekom International Finance BV (Netherlands)
5.25%	07/22/13(b)	Baa3		2,750		2,778,102
8.75%	06/15/30(g)	Baa3		410		523,746
9.25%	06/01/32(g)	Baa3		100		137,214
INTELSAT Ltd. (Bermuda)
6.50%	11/01/13	Baa3		970		1,012,091
Koninklijke (Royal) KPN NV (Netherlands)
8.00%	10/01/10	Baa1		2,330		2,787,302
Sprint Capital Corp.
6.875%	11/15/28	Baa3		2,950		2,878,704
Telecom de Puerto Rico, Inc.
6.65%	05/15/06	Baa1		4,500		4,877,384
6.80%	05/15/09	Baa1		2,220		2,481,820
Telecom Italia Capital (Luxembourg)
5.25%	11/15/13	Baa2		1,720		1,723,425
Telefonica Europe BV (Netherlands)
7.75%	09/15/10	A3		1,490		1,768,979
Telus Corp. (Canada)
8.00%	06/01/11	Ba1		1,600		1,870,859
Verizon Global Funding Corp.
7.75%	12/01/30(b)	A2		1,650		1,938,272
Verizon, Inc.
4.625%	03/15/13	Aa3		640		616,822

SEE NOTES TO FINANCIAL STATEMENTS.

B10




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Telecommunications (cont’d)
Vodafone Group PLC (United Kingdom)
5.00%	12/16/13	A2	$	1,165	$	1,160,184
7.75%	02/15/10	A2		1,100		1,303,714

						41,514,662

Tobacco — 0.1%
Altria Group, Inc.
5.625%	11/04/08	Baa2		1,910		1,959,353
7.65%	07/01/08	Baa2		825		913,113

						2,872,466

Transportation — 0.2%
Norfolk Southern Corp.
7.80%	05/15/27	Baa1		2,000		2,402,110
Union Pacific Corp.,
6.625%	02/01/08	Baa2		1,755		1,948,110
6.65%	01/15/11	Baa2		700		780,651

						5,130,871

Utilities — 1.0%
Arizona Public Service Co.
7.625%	08/01/05	Baa1		5,000		5,390,775
CenterPoint Energy Houston Electric LLC
5.70%	03/15/13	Baa2		1,070		1,118,151
6.95%	03/15/33	Baa2		800		886,209
CenterPoint Energy Resources Corp.
7.875%	04/01/13	Ba1		735		832,091
Consumers Energy Co.
5.375%	04/15/13	Baa3		435		437,012
Dominion Resources, Inc.
5.125%	12/15/09	Baa1		1,255		1,309,951
Energy East Corp.
6.75%	09/15/33	Baa2		805		844,663
FirstEnergy Corp.
7.375%	11/15/31	Baa2		960		982,058
Florida Power & Light Co.
5.95%	10/01/33	Aa3		790		809,189
Hydro-Quebec (Canada)
8.00%	02/01/13	A1		1,900		2,364,468
Nisource Finance Corp.
7.625%	11/15/05	Baa3		750		819,373
Oncor Electric Delivery Co.
6.375%	01/15/15	Baa1		465		505,516
7.00%	09/01/22	Baa2		700		771,186
7.25%	01/15/33	Baa1		340		386,778
PacifiCorp.
5.45%	09/15/13	A3		385		399,431
Pepco Holdings, Inc.
5.50%	08/15/07	Baa2		735		786,239
Pinnacle Partners
8.83%	08/15/04	Ba2		5,600		5,803,000
PPL Electric Utilities Corp.
6.25%	08/15/09	Baa1		1,900		2,098,377
PSEG Power LLC
6.95%	06/01/12	Baa1		800		902,229
7.75%	04/15/11	Baa1		330		388,418


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Utilities — (cont’d)
Xcel Energy, Inc.
3.40%	07/01/08	Baa3	$	785	$	766,612
7.00%	12/01/10	Baa3		250		283,488

						28,885,214

Waste Management — 0.1%
Waste Management, Inc.
7.75%	05/15/32	Baa3		2,250		2,651,476

Foreign Government Bonds
Republic of Italy (Italy)
5.375%	06/15/33(b)	AA(e)		1,080		1,040,282
6.00%	02/22/11	AA(e)		430		479,328

						1,519,610

U.S. Government & Agency Obligations — 7.6%
Federal Home Loan Mortgage Corp.,
3.625%	09/15/08			2,585		2,602,105
Federal National Mortgage Association,
3.25%	08/15/08(b)			10,475		10,391,661
5.25%	08/01/12(b)			8,475		8,690,104
6.625%	09/15/09(b)			5,440		6,220,526
7.25%	01/15/10(b)			34,125		40,234,603
United States Treasury Bonds,
5.375%	02/15/31(b)			1,570		1,637,278
6.00%	02/15/26			1,500		1,511,542
8.125%	08/15/19-08/15/21(b)			4,885		6,646,305
9.25%	02/15/16			6,855		9,839,338
United States Treasury Notes,
1.625%	09/30/05(b)			1,160		1,159,546
1.875%	11/30/05-12/31/05(b)			40,505		40,575,800
2.00%	05/15/06(b)			11,750		11,752,291
2.375%	08/15/06(b)			11,275		11,335,784
2.625%	11/15/06(b)			24,565		24,781,860
3.375%	12/15/08(b)			9,000		9,061,173
United States Treasury Strips,
Zero	05/15/18			29,240		13,883,883
Zero	05/15/19(b)			34,515		15,352,583
Zero	02/15/25			1,620		504,513
Zero	05/15/25(b)			1,680		516,024
Zero	05/15/26			14,000		4,051,474

						220,748,393

Mortgage Backed Securities — 14.2%
Federal Home Loan Mortgage Corp.,
4.50%	TBA			10,000		9,996,880
5.50%	TBA			11,000		11,130,625
6.00%	TBA			10,000		10,331,250
6.50%	05/01/14-04/01/15			2,356		2,495,881
7.00%	10/01/32			436		460,935
7.00%	TBA			18,000		19,040,616
Federal National Mortgage Association,
4.50%	TBA			10,500		10,509,849
5.001%	TBA			80,500		80,993,616
5.174%	07/01/33(g)			5,290		5,430,872
5.50%	07/18/12-06/01/23(b)			13,589		13,963,226
5.501%	TBA			75,000		75,995,589
6.00%	05/15/11-04/01/33(b)			28,667		31,086,370
6.001%	TBA			56,500		58,531,747

SEE NOTES TO FINANCIAL STATEMENTS.

B11




		*CONSERVATIVE BALANCED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Mortgage Backed Securities (cont’d.)
Federal National Mortgage Association, (cont’d.)
6.50%	07/01/17-11/01/33		$	13,694	$	14,362,482
6.501%	TBA			13,500		14,115,937
7.00%	08/01/11-06/01/32			3,349		3,562,725
7.001%	TBA			2,500		2,646,875
7.50%	05/01/12-05/01/32			5,338		5,707,264
7.501%	TBA			9,000		9,615,942
Government National Mortgage Association,
5.50%	08/15/33			997		1,014,870
5.501%	TBA			5,000		5,082,810
6.50%	10/15/23-08/15/32			22,071		23,312,583
7.00%	09/15/31			1,001		1,066,875
8.00%	01/15/24-04/15/25			915		1,000,496

						411,456,315

TOTAL LONG-TERM BONDS (cost $1,024,168,547)						1,044,785,578

TOTAL LONG-TERM INVESTMENTS (cost $2,655,964,729)						2,640,634,639

SHORT-TERM INVESTMENTS — 40.4%
Commercial Paper — 5.4%
Hartford Financial Services, Inc.(c)
1.20%	02/06/04	P-1		20,000		19,976,000
1.25%	01/13/04	P-1		9,496		9,492,043
Kraft Foods, Inc. (c)
1.28%	02/11/04	P-1		20,000		19,970,845
Reed Elsevier, Inc.(c)
1.20%	01/30/04	P-1		20,000		19,980,667
1.22%	01/13/04	P-1		15,000		14,993,900
1.22%	02/11/04	P-1		8,420		8,408,301
1.22%	02/17/04	P-1		7,000		6,988,850
Sara Lee Corp.(c)
1.15%	02/09/04	P-1		25,000		24,968,854
1.15%	02/10/04	P-1		10,000		9,987,222
1.15%	02/11/04	P-1		20,000		19,973,806

						154,740,488

U.S. Government & Agency Obligations — 0.6%
United States Treasury Bills(d)(i)
Zero	03/18/04			17,200		17,167,994


	Shares	Value (Note 2)
SHORT-TERM INVESTMENTS (Continued)
Mutual Fund — 34.4%
Dryden Core Investment Fund — Taxable Money Market Series (Note 4)(c)	996,038,806	$	996,038,806

TOTAL SHORT-TERM INVESTMENTS (cost $1,167,947,288)			1,167,947,288

TOTAL INVESTMENTS — 131.6% (cost $3,823,912,017; Note 6)			3,808,581,927
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(j)			(55,050	)
LIABILITIES IN EXCESS OF OTHER ASSETS — (31.6)%			(913,555,369	)

TOTAL NET ASSETS — 100%		$	2,894,971,508

The following abbreviations are used in portfolio descriptions:


M.T.N.		Medium Term Note
TBA		Securities purchased on a forward commitment basis
LP		Limited Partnership

(a)	Non-Income producing security.

(b)	Portion of securities on loan with an aggregate market value of $582,405,921; cash of $603,409,940 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Standard & Poor’s rating.

(f)	Indicates a fair valued security.

(g)	Increase/decrease in rate variable upon increase/decrease in Moody’s or Standard & Poor’s rating.

(h)

A TRAIN (Targeted Return Index Securities Trust) is a trust established pursuant to a series trust agreement by Lehman Brothers, Inc. Each registered holder of certificates issued by the TRAIN is a beneficial owner of a fractional undivided interest in the TRAIN and is entitled to receive a pro rata share of interest and other amounts or property distributed. Rate shown reflects the weighted average rate of the underlying securities as of December 31, 2003.

(i)	Rate quoted represents yield-to-maturity as of purchase date.

(j)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
216	S&P MidCap 400 Index	Mar. 04	$	60,147,200	$	62,213,400	$	2,066,200
312	S&P 500 Index	Mar. 04		82,941,450		86,626,800		3,685,350
121	S&P 500 Index	Mar. 04		32,420,900		33,595,650		1,174,750
215	U.S. Treasury 5 Yr. Notes	Mar. 04		23,977,570		23,999,375		21,805
200	U.S. Treasury 5 Yr. Notes	Mar. 04		22,234,375		22,325,000		90,625

								7,038,730
Short Positions:
462	U.S. Treasury 10 Yr. Notes	Mar. 04		51,534,173		51,866,719		(332,546	)
18	U.S. Treasury 2 Yr. Notes	Mar. 04		3,837,608		3,852,844		(15,236	)
20	U.S Treasury Bonds	Mar. 04		2,171,691		2,186,250		(14,559	)

								(362,341	)

							$	6,676,389

SEE NOTES TO FINANCIAL STATEMENTS.

B12




		*DIVERSIFIED BOND PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 99.2% LONG-TERM BONDS — 98.6%	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Aerospace — 0.3%
Raytheon Co.	Baa3	4.50%	11/15/07	$	700	$	709,731
Raytheon Co.	Baa3	8.30%	03/01/10		1,900		2,279,825
United Technologies Corp.	A2	7.125%	11/15/10		575		673,305

							3,662,861

Airlines — 0.3%
Continental Airlines, Inc., Series 2000-1, Class A-1	Baa3	8.048%	11/01/20		3,959		4,055,758

Asset Backed Securities — 2.1%
Citibank Credit Card Master Trust, Series 1996-3	Aaa	6.10%	05/15/08		12,500		13,576,781
MBNA Master Credit Card Trust	Aaa	7.00%	02/15/12		14,300		16,529,139

							30,105,920

Automobiles & Trucks — 3.2%
Auburn Hills Trust, Inc.	A3	12.375%	05/01/20		1,605		2,312,510
Daimlerchrysler North America Holding Corp.	A3	6.50%	11/15/13		2,000		2,106,820
Equus Cayman Finance, Ltd., (Cayman Islands)	Ba1	5.50%	09/12/08		830		841,541
Ford Motor Co.(b)	Baa1	7.45%	07/16/31		2,420		2,445,461
Ford Motor Credit Co.	A3	6.875%	02/01/06		555		592,356
Ford Motor Credit Co.	A3	7.00%	10/01/13		5,175		5,457,964
Ford Motor Credit Co.	A3	7.375%	02/01/11		2,995		3,264,370
Ford Motor Credit Co.(b)	A3	7.75%	03/15/05		3,500		3,693,515
Ford Motor Credit Co.	A3	7.875%	06/15/10		600		670,419
General Motors Acceptance Corp.(b)	A3	6.15%	04/05/07		3,710		3,976,226
General Motors Acceptance Corp.(b)	A3	6.875%	08/28/12		5,895		6,341,994
General Motors Corp.(b)	Baa1	8.375%	07/15/33		5,435		6,309,019
Hyundai Motor Manufacturing LLC	Ba1	5.30%	12/19/08		1,820		1,825,443
Lear Corp.	Ba1	7.96%	05/15/05		3,040		3,252,800
Lear Corp.	Ba1	8.11%	05/15/09		1,700		1,999,625

							45,090,063

Banks and Savings & Loans — 3.1%
Bank of America Corp.	Aa2	5.875%	02/15/09		3,150		3,451,442
Cho Hung Bank, (South Korea)(g)	Baa2	11.50%	04/01/10		1,335		1,475,175
Cho Hung Bank, (South Korea)(g)	Baa2	11.875%	04/01/10		1,190		1,320,900
Citigroup, Inc.	Aa2	5.875%	02/22/33		675		663,395
Citigroup, Inc.(b)	Aa2	6.00%	10/31/33		2,000		1,999,794
Citigroup, Inc.(b)	Aa2	6.625%	06/15/32		980		1,061,621
Citigroup, Inc.	Aa2	7.25%	10/01/10		2,000		2,331,116
Hanvit Bank, (South Korea)(g)	Baa3	12.75%	03/01/10		100		111,000
HBOS PLC, (United Kingdom)	Aa3	6.00%	11/01/33		3,300		3,280,609
HSBC Holdings PLC, (United Kingdom)(b)	A1	5.25%	12/12/12		3,100		3,174,583
KBC Bank Funding Trust III(b)(g)	A2	9.86%	11/29/49		5,000		6,337,180
Korea Exchange Bank, (South Korea)(g)	Baa3	13.75%	06/30/10		1,915		2,221,400
PNC Funding Corp.	A3	7.50%	11/01/09		1,090		1,278,296
Santander Central Hispano Issuances, (Cayman Islands)	A1	7.625%	09/14/10		1,200		1,422,508
UFJ Finance Aruba AEC, (Aruba)	Baa1	6.75%	07/15/13		2,565		2,735,570
Washington Mutual, Inc.	A3	7.50%	08/15/06		10,000		11,171,420

							44,036,009

Building & Construction — 0.7%
American Standard, Inc.	Ba2	7.625%	02/15/10		3,800		4,313,000
Cemex SA, (Mexico)	Ba1	9.625%	10/01/09		2,400		2,898,000
D.R. Horton, Inc.	Ba1	6.875%	05/01/13		1,000		1,065,000
KB HOME	Ba1	7.75%	10/15/04		2,260		2,316,500

							10,592,500

Cable & Pay Television Systems — 0.5%
Clear Channel Communications, Inc.	Baa3	4.40%	05/15/11		700		683,497
Comcast Cable Communications, Inc.	Baa3	6.375%	01/30/06		650		699,756
Comcast Corp., Class A	Baa3	7.05%	03/15/33		255		277,392

SEE NOTES TO FINANCIAL STATEMENTS.

B13




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Cable & Pay Television Systems (cont’d.)
Cox Communications, Inc.(b)	Baa2	7.125%	10/01/12	$	1,875	$	2,162,650
Rogers Cablesystems, Inc., (Canada)	Ba2	10.00%	03/15/05		3,500		3,753,750

							7,577,045

Chemicals — 0.7%
Dow Chemical Co.	A3	5.97%	01/15/09		1,490		1,602,939
Dow Chemical Co.,	A3	5.75%	11/15/09		2,600		2,783,693
Eastman Chemical Co.	Baa2	7.00%	04/15/12		775		856,242
ICI Wilmington, Inc.	Baa3	4.375%	12/01/08		2,040		2,032,332
ICI Wilmington, Inc.	Baa3	5.625%	12/01/13		2,930		2,944,108

							10,219,314

Collateralized Mortgage Obligations — 0.4%
Washington Mutual, Series 2002-AR15, Class A5(g)	Aaa	4.38%	12/25/32		5,400		5,418,089

Commercial Mortgage Backed Securities — 4.3%
Bear Stearns Commercial Mortgage Securities, Inc., Series 2003-T10, Class X2(g)	AAA(e)	1.27%	03/13/40		43,638		2,829,651
Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2	AAA(e)	7.37%	06/19/29		4,429		4,844,595
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2	Aaa	4.93%	07/10/39		8,500		8,628,757
JP Morgan Chase Commercial Mortgage Securities, Series 2003-CB6, Class A2	Aaa	5.255%	07/12/37		9,700		9,998,378
JP Morgan Chase Commercial Mortgage Securities, Series 2003-ML1A, Class A2	Aaa	4.767%	03/12/39		4,969		4,971,178
LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A3	Aaa	4.83%	11/15/27		3,375		3,434,345
Morgan Stanley Dean Witter Capital I, Series 2000-PRIN, Class A3	Aaa	7.36%	02/23/34		2,530		2,881,013
PNC Mortgage Acceptance Corp., Series 1999-CM1, Class A1B	AAA(e)	7.33%	12/10/32		4,800		5,534,766
PNC Mortgage Acceptance Corp., Series 2001-C1, Class A1	Aaa	5.91%	03/12/34		7,143		7,683,478
Wachovia Bank Commercial Mortgage Trust, Series 2002-C2, Class A4	AAA(e)	4.98%	11/15/34		2,500		2,541,697
Wachovia Bank Commercial Mortgage Trust, Series 2003-C3, Class A2	AAA(e)	4.867%	02/15/35		7,330		7,373,711

							60,721,569

Commercial Services — 0.2%
Certegy, Inc.	Baa2	4.75%	09/15/08		1,900		1,947,852
Equifax, Inc.	Baa1	4.95%	11/01/07		1,340		1,401,527

							3,349,379

Computers — 1.7%
Computer Associates International, Inc.	Baa3	6.375%	04/15/05		2,005		2,095,937
Computer Sciences Corp.	A2	6.75%	06/15/06		495		542,842
Electronic Data Systems Corp.	Baa3	6.00%	08/01/13		7,375		7,246,933
Electronic Data Systems Corp.(b)	Baa3	6.85%	10/15/04		5,735		5,934,945
Hewlett-Packard Co.	A3	7.15%	06/15/05		400		430,050
International Business Machines Corp.(b)	A1	5.875%	11/29/32		3,500		3,521,640
International Business Machines Corp.	A1	8.375%	11/01/19		575		753,504
Jabil Circuit, Inc.	Baa3	5.875%	07/15/10		2,000		2,086,142
Unisys Corp.	Ba1	8.125%	06/01/06		1,650		1,782,000

							24,393,993

Containers & Packaging — 0.8%
Pactiv Corp.	Baa2	7.20%	12/15/05		2,450		2,659,392
Pactiv Corp.	Baa2	7.95%	12/15/25		1,575		1,874,302
Pactiv Corp.	Baa2	8.125%	06/15/17		2,360		2,869,436
Sealed Air Corp.	Baa3	5.625%	07/15/13		1,255		1,284,230
Sealed Air Corp.	Baa3	6.875%	07/15/33		1,910		2,021,726

							10,709,086

Diversified Operations — 0.2%
Bombardier, Inc., (Canada)(b)	Baa3	6.75%	05/01/12		2,900		3,168,250

SEE NOTES TO FINANCIAL STATEMENTS.

B14




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Drugs & Medical Supplies — 1.4%
Bristol-Myers Squibb Co.	A1	5.75%	10/01/11	$	1,025	$	1,107,637
Pharmacia Corp.	Aaa	6.50%	12/01/18		1,015		1,179,403
Quest Diagnostics, Inc.	Baa3	6.75%	07/12/06		5,775		6,311,151
Schering-Plough Corp.(b)	A3	5.30%	12/01/13		1,500		1,526,173
Schering-Plough Corp.	A3	6.50%	12/01/33		1,850		1,924,437
Wyeth	Baa1	5.50%	02/01/14		5,300		5,360,499
Wyeth(h)	Baa1	6.125%	03/15/04		2,200		2,219,807

							19,629,107

Financial Services — 2.0%
Capital One Bank	Baa2	6.50%	07/30/04		500		513,737
Capital One Bank(b)	Baa2	6.875%	02/01/06		4,250		4,597,641
Capital One Bank	Baa3	6.50%	06/13/13		3,500		3,669,446
Capital One Financial Corp.	Baa3	6.25%	11/15/13		1,550		1,589,046
CIT Group, Inc.(b)	A2	5.50%	11/30/07		235		251,609
General Electric Capital Corp.	Aaa	6.125%	02/22/11		2,900		3,190,336
General Electric Capital Corp.	Aaa	6.75%	03/15/32		5,000		5,535,605
Household Finance Corp.(b)	A1	5.75%	01/30/07		1,000		1,081,103
Household Finance Corp.	A1	6.75%	05/15/11		550		619,159
International Lease Finance Corp.(b)	A1	2.95%	05/23/06		1,940		1,955,349
Midland Funding II, Series B	Ba3	13.25%	07/23/06		4,000		4,680,000

							27,683,031

Food & Beverage — 1.9%
Cadbury Schweppes US Finance(b)	Baa2	3.875%	10/01/08		2,600		2,588,193
ConAgra Foods, Inc.(b)	Baa1	6.00%	09/15/06		1,600		1,729,419
Kellogg Co.	Baa2	6.00%	04/01/06		9,975		10,688,611
Kraft Foods, Inc.	A3	5.25%	06/01/07		650		691,536
Kraft Foods, Inc.	A3	5.625%	11/01/11		2,630		2,771,089
Kraft Foods, Inc.	A3	6.25%	06/01/12		1,425		1,553,052
Miller Brewing Co.	Baa1	5.50%	08/15/13		1,215		1,241,296
SABMiller PLC, (United Kingdom)	Baa1	6.625%	08/15/33		3,500		3,700,260
Tyson Foods, Inc.	Baa3	6.625%	10/17/05		1,025		1,070,912
Tyson Foods, Inc.(b)	Baa3	7.25%	10/01/06		1,250		1,369,791

							27,404,159

Forest Products — 0.2%
International Paper Co.	Baa2	5.50%	01/15/14		2,110		2,117,839
Weyerhaeuser Co.	Baa2	7.375%	03/15/32		1,170		1,272,143

							3,389,982

Gaming — 0.1%
International Game Technology(b)	Baa3	7.875%	05/15/04		1,895		1,934,473

Hospital Management — 1.0%
HCA, Inc.	Ba1	7.125%	06/01/06		10,500		11,376,036
HCA, Inc.	Ba1	7.875%	02/01/11		2,000		2,281,022

							13,657,058

Industrials — 0.5%
Rockwell Automation, Inc.	A3	5.20%	01/15/98		6,500		5,139,745
RPM International, Inc.	Baa3	6.25%	12/15/13		1,690		1,713,591

							6,853,336

Insurance — 0.5%
Aon Corp.	Baa2	7.375%	12/14/12		225		257,269
Commerce Group, Inc.	Baa2	5.95%	12/09/13		720		730,193
Hartford Financial Services Group, Inc.	A3	2.375%	06/01/06		1,400		1,392,989
Odyssey Re Holdings Corp.	BBB-(e)	7.65%	11/01/13		2,820		2,946,150
Royal & Sun Alliance Insurance Group PLC, (United Kingdom)(b)	Ba2	8.95%	10/15/29		535		520,223
UnumProvident Corp.	Baa3	7.625%	03/01/11		665		732,584

							6,579,408

SEE NOTES TO FINANCIAL STATEMENTS.

B15




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Investment Banks — 0.8%
JP Morgan Chase & Co.	A2	6.75%	02/01/11	$	1,260	$	1,420,765
Lehman Brothers Holdings, Inc.	A1	6.625%	02/05/06		3,685		4,007,043
Morgan Stanley	Aa3	7.75%	06/15/05		5,000		5,427,025

							10,854,833

Leisure — 1.2%
Carnival Corp.	A3	3.75%	11/15/07		3,600		3,606,433
Carnival PLC, (United Kingdom)	Baa3	7.30%	06/01/07		825		916,675
Harrahs Operating Co., Inc.(b)	Ba1	7.875%	12/15/05		5,375		5,845,312
MGM Mirage, Inc.	Ba1	6.00%	10/01/09		3,900		4,007,250
Park Place Entertainment Corp.	Ba2	7.875%	12/15/05		2,450		2,624,563

							17,000,233

Machinery — 1.2%
Ingersoll-Rand Co., (Bermuda)	BBB+(e)	5.80%	06/01/04		10,225		10,406,933
John Deere Capital Corp.	A3	7.00%	03/15/12		6,275		7,228,731

							17,635,664

Media — 3.8%
British Sky Broadcasting Group PLC, (United Kingdom)(b)	Baa3	7.30%	10/15/06		3,050		3,396,081
Chancellor Media Corp.	Ba1	8.00%	11/01/08		4,720		5,463,400
Liberty Media Corp.(b)	Baa3	5.70%	05/15/13		1,525		1,542,179
News America, Inc.(g)	Baa3	6.703%	05/21/04		22,000		22,351,186
Thomson Corp., (Canada)	A3	5.75%	02/01/08		2,750		2,981,737
Time Warner, Inc.	Baa1	5.625%	05/01/05		500		523,396
Time Warner, Inc.(b)	Baa1	6.875%	05/01/12		3,000		3,375,915
Time Warner, Inc.	Baa1	7.70%	05/01/32		2,300		2,684,344
Turner Broadcasting Systems, Inc.	Baa1	7.40%	02/01/04		10,000		9,999,944
United News & Media PLC, (United Kingdom)	Baa2	7.25%	07/01/04		2,000		2,034,642

							54,352,824

Metals — 0.3%
Alcan, Inc.	Baa1	5.20%	01/15/14		2,400		2,425,874
Alcan, Inc.	Baa1	6.125%	12/15/33		1,820		1,831,088

							4,256,962

Municipals — 0.3%
Illinois St., G.O., Taxable Pension	Aa3	5.10%	06/01/33		4,820		4,408,758

Oil & Gas — 2.6%
B.J. Services Co.	Baa2	7.00%	02/01/06		5,000		5,342,275
Conoco Funding Co., (Canada)	A3	6.35%	10/15/11		600		672,695
ConocoPhillips	A3	4.75%	10/15/12		1,780		1,787,490
ConocoPhillips	A3	6.375%	03/30/09		3,075		3,445,538
Halliburton Co.(g)	Baa2	2.656%	10/17/05		6,040		6,105,697
Halliburton Co.	Baa2	5.50%	10/15/10		2,920		3,053,785
Halliburton Co.	Baa2	7.60%	08/15/96		140		151,317
Occidental Petroleum Corp.(b)	Baa1	4.25%	03/15/10		3,250		3,270,377
Petrobras International Finance Co., (Mexico)(b)	Ba2	8.375%	12/10/18		2,000		2,055,000
Petronas Capital, Ltd., (Malaysia)	Baa1	7.00%	05/22/12		7,300		8,315,591
Suncor Energy, Inc.	A3	5.95%	12/01/34		850		843,762
Tosco Corp.	A3	7.25%	01/01/07		1,500		1,680,708

							36,724,235

Oil & Gas Exploration & Production — 2.2%
Burlington Resources Finance, (Canada)	Baa1	6.50%	12/01/11		510		569,577
Chesapeake Energy Corp.	Ba3	8.125%	04/01/11		61		67,393
Devon Financing Corp.(b)	Baa2	6.875%	09/30/11		1,150		1,304,014
Marathon Oil Corp.	Baa1	6.80%	03/15/32		1,800		1,927,732
Ocean Energy, Inc.	Baa3	7.25%	10/01/11		500		575,440

SEE NOTES TO FINANCIAL STATEMENTS.

B16




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Oil & Gas Exploration & Production (cont’d.)
Parker & Parsley Petroleum Co.	Ba1	8.25%	08/15/07	$	1,310	$	1,513,068
Parker & Parsley Petroleum Co.	Ba1	8.875%	04/15/05		4,995		5,345,894
Pemex Finance, Ltd., (Cayman Islands)	Baa1	9.14%	08/15/04		2,054		2,086,582
Petroleos Mexicanos, (Mexico)	Baa1	8.85%	09/15/07		4,450		5,150,875
Petroleos Mexicanos, (Mexico)	Baa1	9.25%	03/30/18		1,470		1,712,550
Petroleos Mexicanos, (Mexico)(b)	Baa1	9.50%	09/15/27		5,900		7,021,000
Transocean, Inc.	Baa2	7.50%	04/15/31		255		292,019
Valero Energy Corp.	Baa3	6.875%	04/15/12		3,725		4,122,081

							31,688,225

Real Estate Investment Trust — 0.6%
ERP Operating LP(d)	Baa1	6.63%	04/13/05		3,900		4,132,935
ERP Operating LP	Baa1	7.10%	06/23/04		1,500		1,536,986
Host Marriott LP	Ba3	8.375%	02/15/06		2,000		2,132,500

							7,802,421

Restaurants — 0.2%
Tricon Global Restaurants, Inc.	Ba1	8.875%	04/15/11		1,950		2,364,375
Yum! Brands, Inc.	Ba1	7.45%	05/15/05		595		634,419

							2,998,794

Retail — 0.6%
JC Penney Co., Inc.	Ba3	7.375%	08/15/08		1,000		1,111,250
May Department Stores Co.	Baa1	6.90%	01/15/32		410		441,581
Saks, Inc.	B1	7.00%	12/01/13		48		48,960
Target Corp.(b)	A2	6.35%	01/15/11		1,400		1,562,223
The Gap, Inc.(b)	Ba3	6.90%	09/15/07		4,675		5,160,031
Toys “R” Us, Inc.(b)	Baa3	7.375%	10/15/18		270		269,810

							8,593,855

Structured Notes — 2.0%
DJ TRAC-X NA HY S2 T1(b)	Ba3	7.375%	03/25/09		11,250		11,728,125
DJ TRAC-X NA HY S2 T2(b)	Ba3	6.05%	03/25/09		10,300		10,544,625
Lehman Brothers, Inc., TRAINS HY-1-2003(f)	B1	8.4848%	05/15/13		2,121		2,343,224
Preferred Term Securities X, Class A-1(g)	Aaa	1.86%	07/03/33		3,900		3,890,250

							28,506,224

Supermarkets — 0.3%
Albertson’s, Inc.(b)	Baa2	7.50%	02/15/11		990		1,134,891
Albertson’s Inc.	Baa2	8.00%	05/01/31		1,500		1,736,432
The Kroger Co.(b)	Baa3	6.75%	04/15/12		1,375		1,523,528

							4,394,851

Telecommunications — 5.8%
AT&T Corp.(b)(h)	Baa2	7.25%	11/15/06		4,950		5,473,888
AT&T Corp.(b)(h)	Baa2	8.05%	11/15/11		870		1,001,353
AT&T Corp.(h)	Baa2	8.75%	11/15/31		1,165		1,361,376
AT&T Wireless Services, Inc.(b)	Baa2	8.125%	05/01/12		1,815		2,134,351
CenturyTel, Inc.	Baa2	7.875%	08/15/12		2,025		2,398,463
Citizens Communications Co.	Baa2	8.50%	05/15/06		2,845		3,106,345
Citizens Communications Co.	Baa2	9.25%	05/15/11		2,700		3,192,056
Deutsche Telekom International Finance BV, (Netherlands)(b)	Baa3	5.25%	07/22/13		4,050		4,091,387
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	8.25%	06/15/05		1,425		1,545,776
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	8.75%	06/15/30		350		447,100
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	9.25%	06/01/32		135		185,238
INTELSAT, (Bermuda)	Baa3	6.50%	11/01/13		3,365		3,511,017
Koninklijke (Royal) KPN NV, (Netherlands)	Baa1	8.00%	10/01/10		3,000		3,588,801

SEE NOTES TO FINANCIAL STATEMENTS.

B17




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Telecommunications (cont’d.)
L-3 Communications Corp.	Ba3	6.125%	01/15/14	$	2,825	$	2,832,063
LCI International, Inc.	Caa1	7.25%	06/15/07		6,675		6,408,000
PCCW-HKTC Capital, Ltd., (Hong Kong)(b)	Baa2	8.00%	11/15/11		2,150		2,523,268
Sprint Capital Corp.	Baa3	6.90%	05/01/19		1,625		1,660,001
Sprint Capital Corp.(b)	Baa3	8.375%	03/15/12		1,640		1,915,192
Telecom de Puerto Rico	Baa1	6.65%	05/15/06		6,800		7,370,268
Telecom de Puerto Rico	Baa1	6.80%	05/15/09		4,365		4,879,795
Telecom Italia Capital, (Luxembourg)	Baa2	5.25%	11/15/13		1,100		1,102,190
TeleCorp PCS, Inc.	Baa2	10.625%	07/15/10		5,940		6,943,438
TELUS Corp., (Canada)	Ba1	7.50%	06/01/07		6,250		6,994,650
TELUS Corp., (Canada)	Ba1	8.00%	06/01/11		150		175,393
Verizon Global Funding Corp.	A+(e)	4.375%	06/01/13		650		614,049
Verizon Wireless Capital, Inc.	A3	5.375%	12/15/06		5,900		6,295,902
Vodafone Group PLC, (United Kingdom)	A2	5.00%	12/16/13		1,150		1,145,246

							82,896,606

Tobacco — 0.3%
Altria Group, Inc	Baa2	7.00%	11/04/13		3,450		3,680,443
Altria Group, Inc.(b)	Baa2	7.65%	07/01/08		1,100		1,217,484

							4,897,927

Utilities — 7.7%
CenterPoint Energy Houston Electric LLC	Baa2	5.70%	03/15/13		2,950		3,082,753
CenterPoint Energy Houston Electric LLC	Baa2	6.95%	03/15/33		1,000		1,107,761
CenterPoint Energy Resources Corp.	Ba1	7.875%	04/01/13		6,600		7,471,840
Cinergy Corp.	Baa2	6.25%	09/01/04		11,000		11,283,789
Commonwealth Edison Co.	A3	5.875%	02/01/33		1,400		1,400,551
Commonwealth Edison Co.	Baa1	7.625%	01/15/07		7,525		8,509,812
Consumers Energy Co.	Baa3	5.375%	04/15/13		1,000		1,004,625
Consumers Energy Co.(h)	Baa3	6.25%	09/15/06		2,300		2,483,448
Dominion Resources, Inc.	Baa1	2.80%	02/15/05		5,000		5,051,545
Duke Energy Field Services	Baa2	7.50%	08/16/05		12,000		12,893,544
Empresa Nacional de Electricidad SA, (Chile)	Ba2	8.35%	08/01/13		625		702,589
Energy East Corp.	Baa2	6.75%	09/15/33		1,150		1,206,662
Enersis SA, (Chile)(b)	Ba2	7.375%	01/15/14		3,700		3,809,394
FirstEnegy Corp.(b)	Baa2	5.50%	11/15/06		1,700		1,760,931
FirstEnergy Corp.	Baa2	6.45%	11/15/11		3,030		3,140,438
FirstEnergy Corp.	Baa2	7.375%	11/15/31		1,125		1,150,849
MidAmerican Energy Holdings Co.	Baa3	7.23%	09/15/05		5,000		5,389,355
Niagara Mohawk Power	Baa2	8.00%	06/01/04		5,000		5,129,645
NiSource Finance Corp.(g)	Baa3	1.919%	05/04/05		5,000		4,999,970
NiSource Finance Corp.(b)	Baa3	7.875%	11/15/10		3,000		3,568,173
Northern States Power Co.	A3	8.00%	08/28/12		2,800		3,413,847
Oncor Electric Delivery Co.	Baa2	7.00%	09/01/22		300		330,508
Pinnacle Partners LP	Ba2	8.83%	08/15/04		7,535		7,808,144
PSE&G Power LLC	Baa1	6.95%	06/01/12		1,500		1,691,679
Southern California Edison Co.	Baa3	6.375%	01/15/06		1,250		1,325,000
Southern California Edison Co.	Baa3	7.625%	01/15/10		1,100		1,265,000
Southern California Edison Co.	Baa2	8.00%	02/15/07		3,823		4,372,556
Xcel Energy, Inc.	Baa3	3.40%	07/01/08		1,330		1,298,846
Xcel Energy, Inc.(b)	Baa3	7.00%	12/01/10		1,850		2,097,808

							108,751,062

Waste Management — 0.7%
Allied Waste North America, Inc.(b)	BB-(e)	7.375%	01/01/04		1,675		1,675,000
Waste Management, Inc.	Baa3	7.00%	10/01/04		1,600		1,655,802
Waste Management, Inc.	Baa3	7.125%	10/01/07		1,550		1,743,262
Waste Management, Inc.	Baa3	7.65%	03/15/11		2,100		2,446,281

SEE NOTES TO FINANCIAL STATEMENTS.

B18




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Waste Management (cont’d.)
Waste Management, Inc.	Baa3	7.75%	05/15/32	$	2,500	$	2,946,085

							10,466,430

FOREIGN GOVERNMENT BONDS — 2.9%
Federal Republic of Brazil, (Brazil)(b)	B2	9.25%	10/22/10		2,675		2,875,625
Federal Republic of Brazil, (Brazil)	B2	11.00%	08/17/40		2,800		3,073,000
Federal Republic of Brazil, (Brazil)	B2	11.25%	07/26/07		565		661,050
Federal Republic of Germany, (Germany)	Aaa	4.25%	01/04/14		EUR 12,020		15,093,207
Republic of Colombia, (Colombia)	Ba2	9.75%	04/23/09	$	550		607,750
Republic of Croatia, (Croatia)(g)	Baa3	2.00%	07/31/06		1,694		1,693,510
Republic of El Salvador, (El Salvador)	Baa3	7.75%	01/24/23		1,700		1,789,250
Republic of Panama, (Panama)	Ba1	1.9375%	07/17/14		550		516,991
Republic of Peru, (Peru)	Ba2	4.50%	03/07/17		750		666,600
Republic of Philippines, (Philippines)(b)	Ba1	9.875%	03/16/10		530		586,975
Russian Federation, (Russia)	Baa3	5.00%	03/31/30		3,760		3,619,000
United Mexican States, (Mexico)	Baa2	8.375%	01/14/11		8,000		9,500,000

							40,682,958

U.S. GOVERNMENT AND AGENCY OBLIGATIONS — 4.2%
Federal Farm Credit Bank		4.15%	05/15/13		6,660		6,407,533
Federal Home Loan Mortgage Corp.(b)		5.75%	01/15/12		10,240		11,155,374
Federal Home Loan Mortgage Corp.		6.00%	06/15/11		4,000		4,439,576
Federal National Mortgage Association(b)		4.625%	10/15/13		9,300		9,234,509
Federal National Mortgage Association(b)		6.00%	05/15/11		19,000		21,058,460
Federal National Mortgage Association		7.25%	05/15/30		2,280		2,784,097
United States Treasury Bond		5.375%	02/15/31		1,765		1,840,634
United States Treasury Notes		4.25%	11/15/13		435		434,524
United States Treasury Notes(b)		5.75%	08/15/10		1,300		1,457,625

							58,812,332

U.S. GOVERNMENT MORTGAGE BACKED SECURITIES — 34.8%
Federal Home Loan Mortgage Corp.		4.50%	TBA		18,000		17,994,384
Federal Home Loan Mortgage Corp.		5.50%	TBA		14,000		14,166,250
Federal Home Loan Mortgage Corp.		6.00%	TBA		13,500		13,947,187
Federal Home Loan Mortgage Corp.		6.50%	07/01/32-09/01/32		7,760		8,130,135
Federal Home Loan Mortgage Corp.		6.50%	TBA		11,000		11,519,068
Federal Home Loan Mortgage Corp.		7.00%	10/01/32		1,270		1,344,170
Federal Home Loan Mortgage Corp.		7.00%	TBA		16,000		16,924,992
Federal National Mortgage Association		4.50%	TBA		5,000		5,004,690
Federal National Mortgage Association		5.00%	TBA		115,500		116,682,696
Federal National Mortgage Association		5.50%	12/01/16-06/01/23		19,103		19,786,663
Federal National Mortgage Association		5.50%	TBA		121,850		123,494,396
Federal National Mortgage Association		6.00%	09/01/17-02/01/23		13,175		13,699,633
Federal National Mortgage Association		6.00%	TBA		50,000		51,671,900
Federal National Mortgage Association		6.50%	11/01/09-11/01/33		34,563		36,304,066
Federal National Mortgage Association		6.50%	TBA		1,000		1,045,625
Federal National Mortgage Association		7.00%	03/01/32-06/01/32		4,777		5,057,952
Federal National Mortgage Association		7.00%	TBA		3,500		3,705,625
Federal National Mortgage Association		9.00%	10/01/16-09/01/21		90		98,251
Government National Mortgage Association		5.50%	05/15/33-07/15/33		4,972		5,060,421
Government National Mortgage Association		5.50%	TBA		10,000		10,165,620
Government National Mortgage Association		6.50%	09/15/32-11/15/33		13,128		13,841,951
Government National Mortgage Association		6.50%	TBA		2,500		2,634,375
Government National Mortgage Association		7.50%	10/15/25-02/15/26		582		626,212

							492,906,262

TOTAL LONG-TERM BONDS (cost $1,358,874,815)							1,398,861,846

SEE NOTES TO FINANCIAL STATEMENTS.

B19




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


PREFERRED STOCK — 0.6%	Shares	Value (Note 2)
Centaur Funding Corp.(a)	27,000	$	7,843,500
(cost $4,323,180)			7,843,500

TOTAL LONG-TERM INVESTMENTS (cost $1,363,197,995)			1,406,705,346


SHORT-TERM INVESTMENT — 38.8%
Mutual Fund — 38.8%
Dryden Core Investment Fund — Taxable Money Market Fund Series, (Note 4)(c) (cost $550,512,508)	550,512,508		550,512,508

TOTAL INVESTMENTS — 138.0% (cost $1,913,710,503; Note 6)			1,957,217,854
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS, NET(j)			(730,467	)
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(i)			46,614
LIABILITIES IN EXCESS OF OTHER ASSETS — (38.0)%			(538,558,184	)

TOTAL NET ASSETS — 100.0%		$	1,417,975,817

The following abbreviations are used in portfolio descriptions:


G.O.		General Obligation
TBA		Securities purchased on a forward commitment basis.

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $157,018,281; cash collateral of $162,986,302 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Standard & Poor’s rating.

(f)

(g)	Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(h)	Increase/decrease in rate variable upon increase/decrease in Moody’s or Standard & Poor’s rating.

(i)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
478	U.S. Treasury Bonds	Mar 04	$	51,904,582	$	52,251,375	$	346,793
1,282	U.S. Treasury 5 Yr Notes	Mar 04		142,092,578		143,103,250		1,010,672

								1,357,465

Short Positions:
896	U.S. Treasury 10 Yr Notes	Mar 04		99,495,803		100,590,000		(1,094,197	)
724	U.S. Treasury 2 Yr Notes	Mar 04		154,456,203		154,969,938		(513,735	)

								(1,607,932	)

							$	(250,467	)

SEE NOTES TO FINANCIAL STATEMENTS.

B20




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

(j)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Foreign Currency Contract	Value at Settlement Date		Current Value		Unrealized Appreciation/ (Depreciation)
Purchased:
Eurodollars expiring 1/5/04	$	14,764,772	$	15,004,143	$	239,371

Sold:
Eurodollars expiring 1/5/04		14,274,259		15,004,143		(729,884	)
Eurodollars expiring 2/3/04		14,752,280		14,992,234		(239,954	)

	$	29,026,539	$	29,996,377		(969,838	)

					$	(730,467	)

SEE NOTES TO FINANCIAL STATEMENTS.

B21




		*EQUITY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.7%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Aerospace/Defense — 2.0%
Boeing Co.	469,266	$	19,774,869
General Dynamics Corp.	11,127		1,005,770
Honeywell International, Inc.	424,628		14,195,314
Lockheed Martin Corp.	664,102		34,134,843
Northrop Grumman Corp.	27,356		2,615,234
Raytheon Co.	19,911		598,126
United Technologies Corp.	103,650		9,822,910

			82,147,066

Air Freight & Couriers — 0.2%
FedEx Corp.	12,219		824,782
United Parcel Service, Inc. (Class “B” Stock)	86,774		6,469,002

			7,293,784

Airlines
Southwest Airlines Co.	7,763		125,295

Automobiles — 0.6%
Ford Motor Co.	75,154		1,202,464
General Motors Corp.	45,114		2,409,087
Harley-Davidson, Inc.(b)	394,290		18,740,604

			22,352,155

Beverages — 1.1%
Anheuser-Busch Cos., Inc.	109,212		5,753,288
Coca-Cola Co.	189,297		9,606,823
PepsiCo, Inc.	525,602		24,503,565
The Pepsi Bottling Group, Inc.	126,482		3,058,335

			42,922,011

Biotechnology — 2.5%
Amgen, Inc.(a)	1,026,110		63,413,598
Biogen Idec, Inc.(a)	28,992		1,066,326
Chiron Corp.(a)	24,560		1,399,674
Gilead Sciences, Inc.(a)(b)	351,600		20,442,024
MedImmune, Inc.(a)	530,964		13,486,486

			99,808,108

Building & Building Products — 0.2%
American Standard Cos., Inc.(a)	76,300		7,683,410
Cavco Industries, Inc.(a)	258		6,192
KB HOME	4,229		306,687
Masco Corp.	29,380		805,306
Pulte Homes, Inc.	5,359		501,709

			9,303,304

Capital Markets — 2.1%
Goldman Sachs Group, Inc.(b)	436,090		43,055,166
Merrill Lynch & Co., Inc.	712,986		41,816,629

			84,871,795

Chemicals — 0.4%
Air Products & Chemicals, Inc.	30,934		1,634,243
Dow Chemical Co.	69,443		2,886,746
E.I. du Pont de Nemours & Co.	79,513		3,648,852
Ecolab, Inc.	22,312		610,679
International Flavors & Fragrances, Inc.	20,569		718,269
Millennium Chemicals, Inc.	255,200		3,235,936
PPG Industries, Inc.	12,374		792,183


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Chemicals (cont’d.)
Praxair, Inc.	57,006	$	2,177,629
Rohm & Haas Co.	25,788		1,101,406

			16,805,943

Commercial Banks — 4.7%
Bank of America Corp.	321,049		25,821,971
Bank One Corp.	796,225		36,299,898
Comerica, Inc.	139,500		7,820,370
Fifth Third Bancorp	180,036		10,640,128
FleetBoston Financial Corp.	384,951		16,803,111
Golden West Financial Corp.	14,834		1,530,720
Mellon Financial Corp.	145,115		4,659,643
SunTrust Banks, Inc.	26,845		1,919,417
The Bank of New York Co., Inc.	673,796		22,316,123
U.S. Bancorp	603,513		17,972,617
Wachovia Corp.	254,054		11,836,376
Washington Mutual, Inc.	45,546		1,827,306
Wells Fargo & Co.	485,936		28,616,771

			188,064,451

Commercial Services & Supplies — 0.7%
Automatic Data Processing, Inc.	46,463		1,840,399
Avery Dennison Corp.	170,737		9,564,687
Cendant Corp.(a)	116,292		2,589,823
Certegy, Inc.	15,358		503,742
Cintas Corp.	21,122		1,058,846
Concord EFS, Inc.(a)	46,831		694,972
Fiserv, Inc.(a)	31,367		1,239,310
H&R Block, Inc.	16,581		918,090
Pitney Bowes, Inc.	21,195		860,941
Waste Management, Inc.	245,410		7,264,136

			26,534,946

Communications Equipment — 2.6%
ADC Telecommunications, Inc.(a)	1,881,600		5,588,352
Advanced Fibre Communications, Inc.(a)	65,846		1,326,797
Avaya, Inc.(a)	30,700		397,258
Cisco Systems, Inc.(a)	2,975,755		72,281,089
Corning, Inc.(a)	157,937		1,647,283
Lucent Technologies, Inc.(a)	231,960		658,766
Motorola, Inc.	942,576		13,262,044
Nokia Oyj, ADR (Finland)(b)	359,100		6,104,700
QUALCOMM, Inc.	56,979		3,072,878

			104,339,167

Computers & Peripherals — 3.2%
Dell, Inc.(a)	666,282		22,626,937
EMC Corp.(a)	224,643		2,902,388
Hewlett-Packard Co.	2,043,125		46,930,581
International Business Machines Corp.	595,708		55,210,217
Lexmark International, Inc.(a)	11,891		935,108
Sun Microsystems, Inc.(a)	274,199		1,231,154

			129,836,385

Consumer Finance — 1.6%
American Express Co.	1,231,352		59,388,107
SLM Corp.	86,531		3,260,488

			62,648,595

SEE NOTES TO FINANCIAL STATEMENTS.

B22




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Containers & Packaging — 1.0%
Bemis Co., Inc.	5,107	$	255,350
Pactiv Corp.(a)	27,173		649,435
Smurfit-Stone Container Corp.(a)	299,900		5,569,143
Temple-Inland, Inc.	537,500		33,685,125

			40,159,053

Diversified Financial Services — 3.7%
Bear Stearns Cos., Inc.	8,811		704,439
Capital One Financial Corp.	48,829		2,992,729
Citigroup, Inc.	1,627,187		78,983,657
Countrywide Financial Corp.	16,601		1,259,161
Fannie Mae	131,529		9,872,567
Federated Investors, Inc. (Class “B” Stock)	24,506		719,496
Freddie Mac	183,472		10,700,087
J.P. Morgan Chase & Co.	478,555		17,577,325
MBNA Corp.	487,101		12,104,460
Morgan Stanley	120,823		6,992,027
PNC Financial Services Group	15,282		836,384
State Street Corp.	111,086		5,785,359

			148,527,691

Diversified Telecommunication Services — 0.5%
ALLTEL Corp.	22,718		1,058,205
BellSouth Corp.	164,297		4,649,605
SBC Communications, Inc.	271,875		7,087,781
Verizon Communications, Inc.	242,261		8,498,516

			21,294,107

Electric Utilities — 2.2%
AES Corp.(a)	55,883		527,535
Ameren Corp.	13,925		640,550
American Electric Power Co., Inc.	18,486		564,008
Consolidated Edison, Inc.	19,945		857,834
Constellation Energy Group, Inc.	21,344		835,831
Dominion Resources, Inc.	37,276		2,379,327
DTE Energy Co.	21,830		860,102
Entergy Corp.	29,006		1,657,113
Exelon Corp.	342,847		22,751,327
FirstEnergy Corp.(b)	786,431		27,682,371
FPL Group, Inc.	23,776		1,555,426
PG&E Corp.(a)	55,640		1,545,123
Pinnacle West Capital Corp.	14,047		562,161
PPL Corp.	20,492		896,525
Progress Energy, Inc.	224,183		10,146,522
Public Service Enterprise Group, Inc.	31,012		1,358,326
Southern Co.	82,335		2,490,634
TXU Corp.	549,600		13,036,512

			90,347,227

Electrical Equipment — 0.1%
Emerson Electric Co.	26,480		1,714,580
Molex, Inc. (Class “A” Stock)	33,408		980,859

			2,695,439

Electronic Equipment & Instruments — 1.1%
Agilent Technologies, Inc.(a)(b)	1,177,164		34,420,275


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Electronic Equipment & Instruments (Cont’d.)
Flextronics International, Ltd. (Singapore)(a)	454,800	$	6,749,232
Jabil Circuit, Inc.(a)	33,828		957,332
Sanmina-SCI Corp.(a)	12,075		152,266
Waters Corp.(a)	31,290		1,037,577

			43,316,682

Energy Equipment & Services —2.3%
BJ Services Co.(a)	876,900		31,480,710
ENSCO International, Inc.	301,300		8,186,321
Halliburton Co.	80,024		2,080,624
Nabors Industries, Ltd. (Barbados)(a)	25,965		1,077,547
Noble Corp.(a)	32,593		1,166,178
Schlumberger, Ltd.	649,540		35,542,829
Weatherford International, Ltd.(a)	348,600		12,549,600

			92,083,809

Food & Staples Retailing — 3.5%
Costco Wholesale Corp.(a)(b)	919,486		34,186,490
Kroger Co.(a)	126,421		2,340,053
Safeway, Inc.(a)	658,894		14,436,367
SYSCO Corp.	61,052		2,272,966
Wal-Mart Stores, Inc.(b)(e)	1,182,931		62,754,490
Walgreen Co.	51,350		1,868,113
Whole Foods Market, Inc.(b)	353,400		23,723,742

			141,582,221

Food Products — 0.3%
H.J. Heinz & Co.	58,924		2,146,601
Hershey Foods Corp.	23,168		1,783,704
Kellogg Co.	195,406		7,441,061
Wm. Wrigley Jr. Co.	35,877		2,016,646

			13,388,012

Gas Utilities — 0.2%
KeySpan Corp.	27,911		1,027,125
Kinder Morgan, Inc.	19,094		1,128,455
NiSource, Inc.	234,800		5,151,512

			7,307,092

Health Care Equipment & Supplies — 1.2%
Boston Scientific Corp.(a)	98,122		3,606,965
Guidant Corp.	194,100		11,684,820
Medtronic, Inc.	610,717		29,686,953
Smith & Nephew PLC, ADR (United Kingdom)	8,169		342,445
Zimmer Holdings, Inc.(a)	33,713		2,373,395

			47,694,578

Health Care Providers & Services — 0.8%
Cardinal Health, Inc.	81,750		4,999,830
Caremark Rx, Inc.(a)(b)	552,800		14,002,424
HCA-The Healthcare Co.	70,669		3,035,940
Quest Diagnostics, Inc.(a)	15,275		1,116,755
UnitedHealth Group, Inc.	91,213		5,306,773
WellPoint Health Networks, Inc.(a)	18,292		1,774,141

			30,235,863

SEE NOTES TO FINANCIAL STATEMENTS.

B23




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Hotels, Restaurants & Leisure — 2.5%
Brinker International, Inc.(a)	500,100	$	16,583,316
Carnival Corp.	56,699		2,252,651
Darden Restaurants, Inc.	31,367		659,962
International Game Technology	31,437		1,122,301
Marriott International, Inc. (Class “A” Stock)(b)	245,872		11,359,286
McDonald’s Corp.	697,288		17,313,661
MGM Mirage, Inc.	168,000		6,318,480
Starbucks Corp.(a)	456,800		15,101,808
Wendy’s International, Inc.	746,000		29,273,040

			99,984,505

Household Durables — 0.3%
American Greetings Corp. (Class “A” Stock)(a)	7,455		163,041
Black & Decker Corp.	7,881		388,691
Centex Corp.	5,170		556,550
Fortune Brands, Inc.	13,546		968,404
Leggett & Platt, Inc.	18,031		390,010
Maytag Corp.	7,320		203,862
Newell Rubbermaid, Inc.	357,599		8,142,529
Snap-on, Inc.	5,751		185,412
Stanley Works	8,464		320,532
Tupperware Corp.	6,087		105,549
Whirlpool Corp.	6,054		439,823

			11,864,403

Household Products — 1.3%
Clorox Co.	59,349		2,881,987
Colgate-Palmolive Co.	96,078		4,808,704
Kimberly-Clark Corp.	318,498		18,820,047
Procter & Gamble Co.	241,240		24,095,051

			50,605,789

Industrial Conglomerates — 4.5%
3M Co.	421,904		35,874,497
Companhia Vale do Rio Doce, ADR (Brazil)(b)	941,500		55,077,750
General Electric Co.(b)	2,217,400		68,695,052
Tyco International, Ltd.	813,478		21,557,167

			181,204,466

Insurance — 3.4%
ACE, Ltd.	66,646		2,760,477
AFLAC, Inc.	81,727		2,956,883
Allstate Corp.	103,010		4,431,490
Ambac Financial Group, Inc.	20,979		1,455,733
American International Group, Inc.	1,102,795		73,093,253
Aon Corp.	27,911		668,189
Berkshire Hathaway, Inc. (Class “A” Stock)(a)	69		5,813,250
Chubb Corp.	29,310		1,996,011
Hartford Financial Services Group, Inc.	25,600		1,511,168
Loews Corp.	432,000		21,362,400
Marsh & McLennan Cos., Inc.	175,254		8,392,914
MetLife, Inc.	167,957		5,655,112
Principal Financial Group, Inc.	30,952		1,023,583
Progressive Corp.	19,459		1,626,578


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Insurance (Cont’d.)
SAFECO Corp.	32,897	$	1,280,680
Travelers Property Casualty Corp. (Class “B” Stock)	187,946		3,189,444

			137,217,165

Internet & Catalog Retail — 1.5%
eBay, Inc.(a)(b)	384,576		24,839,764
InterActiveCorp(a)(b)	998,575		33,881,650

			58,721,414

Internet Software & Services — 0.8%
Yahoo!, Inc.(a)	716,765		32,376,275

IT Consulting & Services — 0.9%
Accenture, Ltd. (Class “A” Stock) (Bermuda)(a)	18,580		489,026
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	27,686		1,507,779
Electronic Data Systems Corp.	577,891		14,181,445
First Data Corp.	119,157		4,896,161
Paychex, Inc.	365,188		13,584,994
Unisys Corp.(a)	29,252		434,392

			35,093,797

Leisure Equipment & Products
Mattel, Inc.	43,840		844,797

Machinery — 1.0%
Caterpillar, Inc.	30,832		2,559,673
Danaher Corp.	66,889		6,137,066
Deere & Co.	42,375		2,756,494
Dover Corp.	46,315		1,841,021
Eaton Corp.	99,386		10,731,700
Illinois Tool Works, Inc.	36,471		3,060,281
Ingersoll-Rand Co. (Class “A” Stock) (Bermuda)	14,067		954,868
Navistar International Corp.(a)	184,400		8,830,916
PACCAR, Inc.	54,800		4,664,576

			41,536,595

Media — 5.1%
Clear Channel Communications, Inc.(b)	599,294		28,064,938
Comcast Corp. (Class “A” Stock)(a)	474,556		15,598,656
Comcast Corp. (Special Class “A” Stock)(a)	456,164		14,268,810
Gannett Co., Inc.	21,066		1,878,245
Hughes Electronics Corp.(a)	862,401		14,272,737
Liberty Media Corp. (Class “A” Stock)(a)	726,001		8,632,152
McGraw Hill, Inc.	13,944		974,964
New York Times Co. (Class “A” Stock)	23,393		1,117,951
News Corp., Ltd., ADR (Australia)	251,000		7,592,752
Omnicom Group, Inc.	28,244		2,466,548
Time Warner, Inc.(a)	401,337		7,220,053
Tribune Co.	32,171		1,660,024
Univision Communications, Inc. (Class “A” Stock)(a)(b)	525,000		20,837,250
Viacom, Inc. (Class “B” Stock)	1,743,903		77,394,415

SEE NOTES TO FINANCIAL STATEMENTS.

B24




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (Cont’d.)
Walt Disney Co.	136,016	$	3,173,253

			205,152,748

Metals & Mining — 4.4%
Alcoa, Inc.	1,497,585		56,908,230
Alumina, Ltd. ADR (Australia)	1,177,600		23,610,880
Barrick Gold Corp. (Canada)	368,653		8,372,109
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	1,343,407		56,597,737
Newmont Mining Corp.	653,095		31,746,948

			177,235,904

Multi-line Retail — 0.2%
Family Dollar Stores, Inc.	18,674		670,023
Federated Department Stores, Inc.	32,202		1,517,680
Kohl’s Corp.(a)	32,794		1,473,762
Sears, Roebuck & Co.	8,148		370,653
Target Corp.	151,357		5,812,109

			9,844,227

Multi-Utilities
Duke Energy Corp.	92,855		1,898,885

Oil & Gas — 5.8%
Apache Corp.(b)	301,599		24,459,679
Burlington Resources, Inc.	34,661		1,919,526
ChevronTexaco Corp.	255,525		22,074,805
ConocoPhillips, Inc.	60,383		3,959,313
Devon Energy Corp.	40,863		2,339,815
ExxonMobil Corp.(e)	1,308,454		53,646,614
GlobalSantaFe Corp. (Cayman Islands)	287,300		7,133,659
Nexen, Inc. (Canada)	320,700		11,580,477
Suncor Energy, Inc. (Canada)(b)	1,381,200		34,737,087
TotalFinaElf SA, ADR (France)	754,200		69,771,042
Unocal Corp.	42,870		1,578,902

			233,200,919

Paper & Forest Products — 0.6%
Bowater, Inc.	107,800		4,992,218
International Paper Co.	358,024		15,434,415
Louisiana-Pacific Corp.(a)	93,900		1,678,932
MeadWestvaco Corp.	26,602		791,409
Weyerhaeuser Co.	26,974		1,726,336

			24,623,310

Personal Products — 0.9%
Avon Products, Inc.	341,700		23,061,333
Estee Lauder Cos., Inc. (Class “A” Stock)	308,300		12,103,858
Gillette Co.	47,127		1,730,975

			36,896,166

Pharmaceuticals — 9.7%
Abbott Laboratories	158,102		7,367,553
Allergan, Inc.(b)	249,200		19,141,052
AstraZeneca PLC, ADR (United Kingdom)(b)	462,600		22,380,588
Bristol-Myers Squibb Co.	39,842		1,139,481
Elan Corp. PLC, ADR (Ireland)(a)	854,200		5,885,438


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Pharmaceuticals (Cont’d.)
Eli Lilly & Co.	91,213	$	6,415,010
Forest Laboratories, Inc.(a)(b)	210,272		12,994,810
GlaxoSmithKline PLC, ADR (United Kingdom)	103,300		4,815,846
Johnson & Johnson	495,382		25,591,434
Medco Health Solutions, Inc.(a)	7,646		259,888
Merck & Co., Inc.	170,262		7,866,104
Novartis AG, ADR (Switzerland)(b)	535,800		24,587,862
Pfizer, Inc.(e)	3,682,400		130,099,192
Roche Holdings AG, ADR (Switzerland)	292,300		29,484,067
Schering-Plough Corp.	839,600		14,600,644
Sepracor, Inc.(a)(b)	703,400		16,832,362
Teva Pharmaceutical Industries, Ltd., ADR (Israel)(b)	863,500		48,969,085
Watson Pharmaceuticals, Inc.(a)	21,453		986,838
Wyeth	185,466		7,873,032

			387,290,286

Real Estate Investment Trust — 0.1%
iStar Financial, Inc.	77,000		2,995,300

Road & Rail — 0.4%
Burlington Northern Santa Fe Corp.	70,552		2,282,357
Canadian National Railway Co. (Canada)	144,500		9,143,960
Union Pacific Corp.	42,172		2,930,111

			14,356,428

Semiconductor & Semiconductor Equipment — 5.6%
Altera Corp.(a)	834,300		18,938,610
Analog Devices, Inc.	58,185		2,656,145
Applied Materials, Inc.(a)(b)	891,957		20,024,435
Fairchild Semiconductor International, Inc.(a)	25,054		625,598
Infineon Technologies AG, ADR (Germany)(a)	432,900		5,935,059
Intel Corp.	3,263,521		105,085,376
KLA-Tencor Corp.(a)	374,503		21,972,091
Linear Technology Corp.	13,914		585,362
Maxim Integrated Products, Inc.	45,421		2,261,966
Micron Technology, Inc.(a)	52,469		706,758
STMicroelectronics NV (Switzerland)	240,000		6,482,400
Texas Instruments, Inc.	1,284,742		37,745,720
Xilinx, Inc.(a)	47,327		1,833,448

			224,852,968

Software — 4.2%
BMC Software, Inc.(a)	567,154		10,577,422
Electronic Arts, Inc.(a)	244,123		11,664,197
Intuit, Inc.(a)	47,411		2,508,516
Microsoft Corp.(b)	3,871,558		106,622,707
Novell, Inc.(a)	36,778		386,904
Oracle Corp.(a)	1,144,775		15,111,030
PeopleSoft, Inc.(a)	48,535		1,106,598
SAP AG, ADR (Germany)(b)	259,000		10,764,040
Siebel Systems, Inc.(a)	56,271		780,479
VERITAS Software Corp.(a)	258,036		9,588,618

			169,110,511

SEE NOTES TO FINANCIAL STATEMENTS.

B25




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Specialty Retail — 1.6%
Bed Bath & Beyond, Inc.(a)	58,498	$	2,535,888
Best Buy Co., Inc.	529,572		27,664,841
CarMax, Inc.(a)(b)	194,800		6,025,164
Home Depot, Inc.	566,450		20,103,311
Lowe’s Cos., Inc.	96,442		5,341,923
The Gap, Inc.	74,744		1,734,808

			63,405,935

Textiles & Apparel
NIKE, Inc. (Class “B” Stock)	22,149		1,516,321

Tobacco — 1.0%
Altria Group, Inc.	740,055		40,273,793

Wireless Telecommunication Services — 1.1%
AT&T Wireless Services, Inc.(a)	1,181,744		9,442,135
Nextel Communications, Inc. (Class “A” Stock)(a)	112,539		3,157,844
Vodafone Group PLC, ADR (United Kingdom)(b)	1,245,838		31,195,783

			43,795,762

TOTAL LONG-TERM INVESTMENTS (cost $3,312,387,828)			3,841,583,448


			Value (Note 2)
	Shares		Value (Note 2)
SHORT-TERM INVESTMENTS — 15.1%
Mutual Fund — 14.1%
Dryden Core Investment Fund —Taxable Money Market Series (Note 4)(c)		564,489,456	$	564,489,456

Repurchase Agreement — 1.0%	Principal Amount (000)
State Street Bank & Trust Co., 0.50%, 1/02/04(d)	$	40,472		40,472,130

TOTAL SHORT-TERM INVESTMENTS (cost $604,961,586)				604,961,586

TOTAL INVESTMENTS — 110.8% (cost $3,917,349,414; Note 6)				4,446,545,034
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(f)				47,210
LIABILITIES IN EXCESS OF OTHER ASSETS — (10.8)%				(433,441,269	)

NET ASSETS — 100%			$	4,013,150,975

SEE NOTES TO FINANCIAL STATEMENTS.

B26

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $414,347,398; cash collateral $437,748,240 was received with which the portfolio purchased securities.

(c)	Represents security purchased with cash collateral received for securities on loan.

(d)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $40,473,255 due 1/2/04. The value of the collateral including accrued interest was $41,289,000. Collateralized by United States Treasury or federal agency obligations.

(e)	Security segregated as collateral for futures contracts.

(f)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
64	S&P 500 Index	Mar 04	$	17,252,150	$	17,769,600	$	517,450




		*FLEXIBLE MANAGED PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 88.7%		Value (Note 2)
COMMON STOCKS — 66.9%	Shares	Value (Note 2)
Advertising
Getty Images, Inc.(a)	25,900	$	1,298,366
Monster Worldwide, Inc.(a)	23,800		522,648

			1,821,014

Aerospace/Defense — 1.7%
Alliant Techsystems, Inc.(a)	35,100		2,027,376
General Dynamics Corp.	61,200		5,531,868
Herley Industries, Inc.(a)	11,100		229,770
L-3 Communications Holdings, Inc.(a)	75,500		3,877,680
Lockheed Martin Corp.(b)	332,200		17,075,080
Northrop Grumman Corp.	154,700		14,789,320
Raytheon Co.	24,000		720,960
Teledyne Technologies, Inc.(a)	4,300		81,055
United Defense Industries, Inc.(a)	6,600		210,408
United Technologies Corp.	193,100		18,300,087

			62,843,604

Airlines
ExpressJet Holdings, Inc.(a)(b)	45,300		679,500

Apparel — 0.1%
Liz Claiborne, Inc.	91,900		3,258,774
V.F. Corp.	52,000		2,248,480
Vans, Inc.(a)	13,100		149,471

			5,656,725

Autos – Cars & Trucks — 1.1%
Dana Corp.	115,900		2,126,765
Ford Motor Co.(b)	939,600		15,033,600
General Motors Corp.(b)	343,134		18,323,356
PACCAR, Inc.	42,500		3,617,600
Wabash National Corp.(a)(b)	5,700		167,010

			39,268,331

Banks and Savings & Loans — 4.3%
Bank One Corp.(b)	561,700		25,607,903
BankAmerica Corp.(b)	499,441		40,170,040
Charter One Financial, Inc.	104,770		3,619,803
Commerce Bancorp, Inc.	57,600		3,034,368
Golden West Financial Corp.	44,500		4,591,955
Huntington Bancshares, Inc.	101,600		2,286,000
KeyCorp	70,200		2,058,264
National City Corp.	271,100		9,201,134
New York Community Bancorp, Inc.(b)	94,733		3,604,591
North Fork Bancorporation, Inc.	16,800		679,896
Popular, Inc.	29,000		1,303,260
Regions Financial Corp.	27,300		1,015,560
SouthTrust Corp.	94,100		3,079,893
U.S. Bancorp(a)(b)	648,232		19,304,349
Union Planters Corp.(b)	95,650		3,012,018
Wachovia Corp.	505,600		23,555,904
Wells Fargo & Co.(b)	193,200		11,377,548
Zions Bancorp	4,400		269,852

			157,772,338

Chemicals — 0.4%
A. Schulman, Inc.	6,900		147,108
Airgas, Inc.	500		10,740
Cytec Industries, Inc.(a)	13,600		522,104
Ecolab, Inc.	19,300		528,241


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Chemicals (cont’d.)
Engelhard Corp.	54,100	$	1,620,295
FMC Corp.(a)	1,100		37,543
Hercules, Inc.(a)(b)	66,400		810,080
International Flavors & Fragrances, Inc.	42,900		1,498,068
Lubrizol Corp.	16,000		520,320
MacDermid, Inc.	10,000		342,400
OM Group, Inc.(a)(b)	58,900		1,542,591
Praxair, Inc.	93,400		3,567,880
RPM, Inc.	63,200		1,040,272
Sigma-Aldrich Corp.	14,700		840,546
TETRA Technologies, Inc.(a)	13,350		323,604

			13,351,792

Commercial Services — 0.7%
Acxiom Corp.(a)	40,200		746,514
Concord EFS, Inc.(a)(b)	87,300		1,295,532
Convergys Corp.(a)	137,300		2,397,258
Corporate Executive Board Co.(a)	27,000		1,260,090
Deluxe Corp.	47,900		1,979,707
Gevity HR, Inc.	24,600		547,104
H&R Block, Inc.	216,200		11,970,994
Harte-Hanks, Inc.	1,200		26,100
Paychex, Inc.(b)	46,700		1,737,240
Polycom, Inc.(a)	142,700		2,785,504
Pre-Paid Legal Services, Inc.(a)(b)	1,200		31,344
SOURCECORP, Inc.(a)	7,100		181,973

			24,959,360

Computers — 1.5%
Dell, Inc.(a)	263,600		8,951,856
Hewlett-Packard Co.	287,265		6,598,477
International Business Machines Corp.	426,800		39,555,824

			55,106,157

Computer Services — 6.2%
Advent Software, Inc.(a)	9,100		158,613
Affiliated Computer Services, Inc.(a)	28,600		1,557,556
Automatic Data Processing, Inc.	13,600		538,696
BARRA, Inc.	1,200		42,588
Black Box Corp.(b)	1,600		73,712
Cisco Systems, Inc.(a)	2,087,000		50,693,230
Citrix Systems, Inc.(a)(b)	292,400		6,201,804
DST Systems, Inc.(a)(b)	86,300		3,603,888
Earthlink, Inc.(a)	14,700		147,000
Electronics for Imaging, Inc.(a)(b)	18,200		473,564
EMC Corp.(a)(b)	752,100		9,717,132
First Data Corp.(b)	340,500		13,991,145
InterVoice, Inc.(a)	2,400		28,488
Intuit, Inc.(a)(b)	287,100		15,190,461
Keane, Inc.(a)	46,900		686,616
Lexmark International, Inc.(a)	182,500		14,351,800
Mercury Computer Systems, Inc.(a)	21,700		540,330
Microsoft Corp.	2,993,000		82,427,220
Oracle Corp.(a)	2,153,300		28,423,560
Progress Software Corp.(a)	900		18,414

SEE NOTES TO FINANCIAL STATEMENTS.

B27




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Computer Services (cont’d.)
Symbol Technologies, Inc.	46,500	$	785,385
Synaptics, Inc.(a)	6,400		95,872

			229,747,074

Construction — 0.8%
Centex Construction Products, Inc.	2,200		132,594
KB HOME(b)	136,700		9,913,484
Masco Corp.(b)	342,600		9,390,666
Pulte Homes, Inc.	60,900		5,701,458
Standard Pacific Corp.	14,800		718,540
The Ryland Group, Inc.(b)	21,000		1,861,440
Vulcan Materials Co.(b)	1,000		47,570
WCI Communities, Inc.(a)	23,000		474,030

			28,239,782

Consumer Products — 0.2%
Coach, Inc.(a)	153,200		5,783,300
Fossil, Inc.(a)	16,900		473,369
Sola International, Inc.(a)	1,700		31,960
Yankee Candle, Inc.(a)	39,500		1,079,535

			7,368,164

Containers & Packaging — 0.2%
Ball Corp.	69,100		4,116,287
Bemis Co., Inc.	14,700		735,000
Pactiv Corp.(a)	148,100		3,539,590
Sealed Air Corp.(a)(b)	13,900		752,546

			9,143,423

Cosmetics & Soaps — 1.6%
Avon Products, Inc.	119,300		8,051,557
Gillette Co.	544,500		19,999,485
Nu Skin Enterprises, Inc.	6,700		114,503
Procter & Gamble Co.	305,500		30,513,340

			58,678,885

Diversified Operations — 3.3%
3M Co.(b)	212,000		18,026,360
Acuity Brands, Inc.	9,800		252,840
CDW Corp.(b)	98,500		5,689,360
Cendant Corp.(a)(b)	234,700		5,226,769
Crane Co.	6,500		199,810
CSG Systems International, Inc.(a)	10,500		131,145
ESCO Technologies, Inc.(a)	1,100		48,015
General Electric Co.	1,845,200		57,164,296
Ingersoll-Rand Co. (Class “A” Stock)	113,200		7,684,016
Pentair, Inc.	13,600		621,520
Roper Industries, Inc.(b)	4,700		231,522
Sensient Technologies Corp.	16,400		324,228
Tyco International Ltd.(b)	951,550		25,216,075

			120,815,956

Drugs & Medical Supplies — 6.9%
Abbott Laboratories	205,500		9,576,300
AdvancePCS(a)	157,400		8,288,684
Affymetrix, Inc.(a)	21,500		529,115
ALARIS Medical, Inc.(a)	4,000		60,840
Align Technology, Inc.(a)	27,900		460,908
Amgen, Inc.(a)	514,908		31,821,314
Apogent Technologies, Inc.(a)	10,800		248,832


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
Bausch & Lomb, Inc.(b)	30,900	$	1,603,710
Baxter International, Inc.(b)	365,900		11,167,268
Beckman Coulter, Inc.	33,800		1,718,054
Becton, Dickinson & Co.	159,300		6,553,602
Biogen Idec, Inc.(a)(b)	86,400		3,177,792
Boston Scientific Corp.(a)	110,600		4,065,656
C.R. Bard, Inc.(b)	67,000		5,443,750
Celgene Corp.(a)(b)	150,900		6,793,518
Cephalon, Inc.(a)(b)	32,900		1,592,689
Cytyc Corp.(a)	242,900		3,342,304
Gen-Probe, Inc.(a)(b)	33,500		1,221,745
Genzyme Corp.(a)(b)	12,300		606,882
Guidant Corp.	85,800		5,165,160
ICU Medical, Inc.(a)(b)	15,300		524,484
Johnson & Johnson(b)	694,198		35,862,269
Kensey Nash Corp.(a)	7,100		165,075
Lilly (Eli) & Co.	79,400		5,584,202
Medtronic, Inc.	65,300		3,174,233
Merck & Co., Inc.	789,800		36,488,760
Merit Medical Systems, Inc.(a)	88		1,959
Molecular Devices Corp.(a)	2,100		39,879
Pfizer, Inc.	1,431,165		50,563,059
PSS World Medical, Inc.	21,900		264,333
Respironics, Inc.(a)	9,500		428,355
Stryker Corp.	139,400		11,850,394
Techne Corp.(a)	26,700		1,008,726
Varian Medical Systems, Inc.(a)(b)	41,300		2,853,830
Ventana Medical Systems, Inc.(a)	1,400		55,160
VISX, Inc.(a)	41,600		963,040

			253,265,881

Electronics — 0.6%
AMETEK, Inc.	300		14,478
Amphenol Corp. (Class “A” Stock)(a)	1,500		95,895
Artesyn Technologies, Inc.(a)	6,800		57,936
C&D Technologies, Inc.	4,300		82,431
Daktronics, Inc.(a)	3,600		90,576
Emerson Electric Co.	32,300		2,091,425
Gentex Corp.(b)	54,700		2,415,552
Hubbell, Inc.	1,900		83,790
IDEXX Laboratories, Inc.(a)(b)	9,600		444,288
PerkinElmer, Inc.	83,600		1,427,052
QLogic Corp.(a)(b)	11,100		572,760
SanDisk Corp.(a)(b)	107,400		6,566,436
Sanmina-SCI Corp.(a)	228,100		2,876,341
Tech Data Corp.(a)	13,900		551,691
Texas Instruments, Inc.	33,800		993,044
Waters Corp.(a)(b)	87,600		2,904,816

			21,268,511

Financial Services — 6.8%
A.G. Edwards, Inc.(b)	49,700		1,800,631
Affiliated Managers Group, Inc.(a)	4,400		306,196
Ambac Financial Group, Inc.(b)	16,300		1,131,057
American Express Co.	63,900		3,081,897
Bear, Stearns & Co., Inc.(b)	166,300		13,295,685
Citigroup, Inc.	1,216,262		59,037,358
City Holding Co.(a)	2,200		77,000

SEE NOTES TO FINANCIAL STATEMENTS.

B28




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Financial Services (cont’d.)
Countrywide Credit Industries, Inc.(b)	70,133	$	5,319,588
Doral Financial Corp.	77,400		2,498,472
Federal National Mortgage Assn.(b)	305,900		22,960,854
Federated Investors, Inc. (Class “B” Stock)	17,900		525,544
First Tennessee National Corp.	85,500		3,770,550
Goldman Sachs Group, Inc.(b)	66,100		6,526,053
J.P. Morgan Chase & Co.	815,910		29,968,374
John Hancock Financial Services, Inc.	153,000		5,737,500
Knight Trading Group, Inc.(a)(b)	50,100		733,464
Lehman Brothers Holdings, Inc.(b)	229,400		17,714,268
MBIA, Inc.	11,900		704,837
MBNA Corp.	227,650		5,657,103
Merrill Lynch & Co., Inc.	356,200		20,891,130
Moody’s Corp.(b)	80,300		4,862,165
Morgan Stanley(b)	44,490		2,574,636
NetBank, Inc.	5,700		76,095
New Century Financial Corp.(b)	83,149		3,298,521
Nuveen Investments (Class “A” Stock)	1,500		39,990
PNC Financial Services Corp.(b)	59,900		3,278,327
SLM Corp.	370,800		13,971,744
Washington Mutual, Inc.	508,100		20,384,972

			250,224,011

Food & Beverage — 2.6%
American States Water Co.	2,800		70,000
Anheuser Busch Cos., Inc.	381,200		20,081,616
Archer-Daniels-Midland Co.	68,179		1,037,684
Coca-Cola Co.	449,100		22,791,825
General Mills, Inc.(b)	184,500		8,357,850
Hershey Foods Corp.	1,100		84,689
International Multifoods Corp.(a)	5,700		102,600
Kellogg Co.(b)	4,500		171,360
Kroger Co.(a)(b)	413,400		7,652,034
Monsanto Co.(b)	227,242		6,540,025
Pepsi Bottling Group, Inc.	217,300		5,254,314
PepsiAmericas, Inc.	29,600		506,752
PepsiCo, Inc.	242,320		11,296,959
Ralcorp Holdings, Inc.(a)	2,400		75,264
Sara Lee Corp.	313,900		6,814,769
SUPERVALU, Inc.	62,000		1,772,580
Sysco Corp.(b)	16,900		629,187
Tyson Foods, Inc. (Class “A” Stock)	102,743		1,360,317
Whole Foods Market, Inc.(a)(b)	45,500		3,054,415

			97,654,240

Forest Products — 0.2%
Georgia-Pacific Corp.	86,300		2,646,821
Louisiana-Pacific Corp.(a)	171,700		3,069,996

			5,716,817

Gas Pipelines — 0.1%
Sempra Energy	143,673		4,318,810

Healthcare — 0.9%
AmSurg Corp.(a)	16,000		606,240
Anthem, Inc.(a)(b)	203,400		15,255,000
Apria Healthcare Group, Inc.(a)	45,300		1,289,691
Health Net, Inc.(a)(b)	48,300		1,579,410


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Healthcare (cont’d.)
Lincare Holdings, Inc.(a)(b)	125,300	$	3,762,759
Manor Care, Inc.(b)	18,600		643,002
Sybron Dental Specialties, Inc.(a)	6,200		174,220
WellPoint Health Networks, Inc.(a)	92,800		9,000,672

			32,310,994

Hospital Management — 0.2%
Hillenbrand Industries, Inc.(b)	14,700		912,282
Humana, Inc.(a)	61,500		1,405,275
LifePoint Hospitals, Inc.(a)(b)	45,900		1,351,755
UnitedHealth Group, Inc.(b)	34,200		1,989,756
Universal Health Services, Inc. (Class “B” Stock)(a)(b)	30,900		1,659,948

			7,319,016

Household & Personal Care Products — 0.7%
Black & Decker Corp.	13,500		665,820
Chattem, Inc.(a)	6,500		116,350
Clorox Co.(b)	183,200		8,896,192
Kimberly-Clark Corp.	255,300		15,085,677

			24,764,039

Housing Related
Maytag Corp.	1,200		33,420

Insurance — 2.5%
ACE, Ltd.	164,600		6,817,732
AFLAC, Inc.	20,500		741,690
Allstate Corp.	315,900		13,590,018
American Financial Group, Inc.	22,100		584,766
American International Group, Inc.	460,735		30,537,516
AmerUs Group Co.(b)	19,300		674,921
Brown & Brown, Inc.(b)	30,700		1,001,127
First American Corp.	21,200		631,124
First Health Group Corp.(a)	59,200		1,152,032
LandAmerica Financial Group, Inc.	19,300		1,008,618
Lincoln National Corp.	6,900		278,553
MetLife, Inc.(b)	209,400		7,050,498
Odyssey Re Holdings Corp.	8,600		193,930
Old Republic International Corp.	44,700		1,133,592
Principal Financial Group, Inc.	179,800		5,945,986
SAFECO Corp.(b)	87,900		3,421,947
St. Paul Cos., Inc.(b)	168,500		6,681,025
Stewart Information Services Corp.	3,200		129,760
Torchmark Corp.	8,900		405,306
Travelers Property Casualty Corp. (Class “B” Stock)	479,639		8,139,474
UnumProvident Corp.(b)	185,270		2,921,708
W.R. Berkley Corp.	16,100		562,695
XL Capital Ltd. (Class “A” Stock)	7,400		573,870

			94,177,888

Leisure — 0.2%
Alliance Gaming Corp.(a)	5,000		123,250
AMC Entertainment, Inc.(a)	500		7,605
Argosy Gaming Co.(a)(b)	20,800		540,592
Aztar Corp.(a)	23,300		524,250
Brunswick Corp.	6,700		213,261
Marriott International, Inc.(b)	23,200		1,071,840
Marvel Enterprises, Inc.(a)(b)	52,900		1,539,919

SEE NOTES TO FINANCIAL STATEMENTS.

B29




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Leisure (cont’d.)
Park Place Entertainment Corp.(a)	163,000	$	1,765,290
Station Casinos, Inc.	15,500		474,765

			6,260,772

Machinery — 0.2%
Albany International Corp. (Class “A” Stock)	13,400		454,260
Applied Industrial Technologies, Inc.	1,600		38,176
Caterpillar, Inc.(b)	73,900		6,135,178
Cummins, Inc.	24,500		1,199,030
Graco, Inc.	11,400		457,140
Harley-Davidson, Inc.(b)	4,100		194,873

			8,478,657

Manufacturing — 0.7%
Danaher Corp.(b)	133,200		12,221,100
Dover Corp.	18,400		731,400
Harman International Industries, Inc.(b)	78,400		5,800,032
Hasbro, Inc.(b)	93,900		1,998,192
Mattel, Inc.(b)	128,200		2,470,414
SCP Pool Corp.(a)	26,100		852,948
W.W. Grainger, Inc.	13,200		625,548

			24,699,634

Media — 2.2%
Clear Channel Communications, Inc.	129,300		6,055,119
Comcast Corp. (Special Class “A” Stock)(a)	211,882		6,964,561
Fox Entertainment Group, Inc.(a)	51,600		1,504,140
Gannett Co., Inc.	96,800		8,630,688
Hughes Electronics Corp.(a)	145,791		2,412,841
McGraw-Hill Cos., Inc.	110,900		7,754,128
Meredith Corp.(b)	17,300		844,413
News Corp. Ltd. (ADR) (Australia)	16,306		493,257
Time Warner, Inc.(a)(b)	1,053,650		18,955,164
Tribune Co.	42,400		2,187,840
Viacom, Inc. (Class “B” Stock)(a)	147,038		6,525,546
Walt Disney Co.(b)	758,200		17,688,806

			80,016,503

Metals – Non Ferrous — 0.4%
Alcoa, Inc.(b)	226,000		8,588,000
Phelps Dodge Corp.(a)(b)	63,300		4,816,497

			13,404,497

Metal – Steel
Commercial Metals Co.	4,300		130,720

Mineral Resources — 0.5%
Newmont Mining Corp.(b)	400,400		19,463,444
Peabody Energy Corp.	11,100		462,981

			19,926,425

Miscellaneous Consumer Growth — 0.1%
Energizer Holdings, Inc.(a)	62,900		2,362,524
FTD, Inc.(a)	400		9,856

			2,372,380

Office Equipment & Supplies
Hon Industries, Inc.	13,600		589,152


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Office Equipment & Supplies (cont’d.)
Imagistics International, Inc.(a)	800	$	30,000
John H. Harland Co.	7,200		196,560
Xerox Corp.(a)(b)	41,300		569,940

			1,385,652

Oil & Gas — 3.8%
Amerada Hess Corp.	77,800		4,136,626
Anadarko Petroleum Corp.	171,700		8,758,417
Baker Hughes, Inc.	175,900		5,656,944
BJ Services Co.(a)	82,900		2,976,110
Burlington Resources, Inc.(b)	93,900		5,200,182
ChevronTexaco Corp.(b)	98,928		8,546,390
Conoco, Inc. (Class “B” Stock)(b)	234,767		15,393,672
Devon Energy Corp.	202,412		11,590,111
Exxon Mobil Corp.(b)	1,269,616		52,054,256
Kerr-McGee Corp.	12,800		595,072
Kinder Morgan, Inc.	89,800		5,307,180
Marathon Oil Corp.	108,500		3,590,265
Nabors Industries Ltd.(a)(b)	149,700		6,212,550
Newfield Exploration Co.(a)	27,800		1,238,212
Occidental Petroleum Corp.	164,700		6,956,928
PNM Resources, Inc.	10,400		292,240
Sunoco, Inc.	35,000		1,790,250
Unit Corp.(a)	26,400		621,720

			140,917,125

Pharmaceuticals — 1.5%
aaiPharma, Inc.(a)(b)	20,000		502,400
Bristol-Myers Squibb Co.	927,200		26,517,920
IMS Health, Inc.	24,000		596,640
Kos Pharmaceuticals, Inc.(a)(b)	19,700		847,888
Wyeth	619,000		26,276,550

			54,741,398

Photography — 0.3%
Eastman Kodak Co.(b)	396,300		10,173,021

Printing & Publishing
Glatfelter	700		8,715
Pulitzer, Inc.	2,100		113,400

			122,115

Railroads — 0.1%
Burlington Northern Sante Fe Corp.(b)	57,700		1,866,595
Union Pacific Corp.	26,900		1,869,012

			3,735,607

Real Estate Investment Trust — 0.1%
Bedford Property Investors, Inc.	2,600		74,438
Boykin Lodging Co.	4,800		43,920
Equity Office Properties Trust	161,300		4,621,245
Equity One, Inc.	9,100		153,608
National Health Investors, Inc.	2,200		54,736
Sizeler Property Investors, Inc.	4,000		42,840

			4,990,787

Restaurants — 0.2%
CBRL Group, Inc.	14,000		535,640
CEC Entertainment, Inc.(a)	12,100		573,419

SEE NOTES TO FINANCIAL STATEMENTS.

B30




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Restaurants (cont’d.)
McDonald’s Corp.	74,100	$	1,839,903
P.F. Chang’s China Bistro, Inc.(a)(b)	30,700		1,562,016
Papa John’s International, Inc.(a)(b)	7,400		247,012
Yum! Brands, Inc.(a)	82,300		2,831,120

			7,589,110

Retail — 4.0%
7-Eleven, Inc.(a)	200		3,210
Aeropostale, Inc.(a)	23,700		649,854
Albertson’s, Inc.(b)	282,961		6,409,067
AnnTaylor Stores Corp.(a)(b)	23,700		924,300
AutoNation, Inc.(a)(b)	174,000		3,196,380
Bed Bath & Beyond, Inc.(a)	36,600		1,586,610
Best Buy Co., Inc.(a)	179,900		9,397,976
Burlington Coat Factory Warehouse Corp.	300		6,348
Costco Wholesale Corp.(a)	11,400		423,852
Dollar General Corp.	7,200		151,128
Electronics Boutique Holdings Corp.(a)	24,500		560,805
Federated Department Stores, Inc.(b)	200,800		9,463,704
Freds, Inc.(b)	26,700		827,166
Handleman Co.	2,000		41,060
Home Depot, Inc.	894,150		31,733,383
Hot Topic, Inc.(a)	21,100		621,606
Jones Apparel Group, Inc.	112,900		3,977,467
Limited Brands	197,600		3,562,728
Lowe’s Cos., Inc.(b)	78,800		4,364,732
May Department Stores Co.	6,900		200,583
Pacific Sunwear of California, Inc.(a)	180,100		3,803,712
PETsMART, Inc.	3,900		92,820
Pier 1 Imports, Inc.	8,000		174,880
Priceline.com, Inc.(a)	15,600		279,240
Radioshack Corp.(b)	11,200		343,616
Reebok International Ltd.(a)(b)	51,100		2,009,252
Rent-A-Center, Inc.(a)	21,600		645,408
Safeway, Inc.(a)(b)	280,500		6,145,755
Sears, Roebuck & Co.(b)	163,400		7,433,066
Wal-Mart Stores, Inc.	882,500		46,816,625
Winn-Dixie Stores, Inc.(a)(b)	76,500		761,175

			146,607,508

Schools — 0.6%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	218,100		14,830,800
Corinthian Colleges, Inc.(a)(b)	39,500		2,194,620
Education Management Corp.(a)	66,000		2,048,640
ITT Educational Services, Inc.(a)	21,800		1,023,946
Renaissance Learning, Inc.(a)(b)	6,600		158,928
Sylvan Learning Systems, Inc.(a)	24,600		708,234

			20,965,168

Semiconductors — 3.1%
Altera Corp.(a)	726,800		16,498,360
Amkor Technology, Inc.(a)	108,000		1,966,680
Analog Devices, Inc.(a)	21,900		999,735
Cypress Semiconductor Corp.(a)(b)	367,500		7,849,800
Intel Corp.	2,078,900		66,940,580


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Semiconductors (cont’d.)
Linear Technology Corp.(b)	382,300	$	16,083,361
Metrologic Instruments, Inc.(a)	1,000		27,000
PMC-Sierra, Inc.(b)	264,100		5,321,615
Standard Microsystems Corp.	1,700		43,010
Tektronix, Inc.(a)	11,300		357,080

			116,087,221

Telecommunications — 3.3%
Alltel Corp.	29,800		1,388,084
Anaren, Inc.(a)	2,300		32,476
Applied Signal Technology, Inc.	2,900		66,729
AT&T Corp.(b)	709,800		14,408,940
AT&T Wireless Services, Inc.(a)(b)	1,288,941		10,298,639
Avaya, Inc.(a)(b)	121,000		1,565,740
BellSouth Corp.	886,600		25,090,780
Centurytel, Inc.	85,400		2,785,748
Crown Castle International Corp.(a)(b)	95,600		1,054,468
Intrado, Inc.(a)	20,600		452,170
Nextel Communications, Inc. (Class “A” Stock)(a)	599,900		16,833,194
Nextel Partners, Inc.(a)	188,200		2,531,290
Plantronics, Inc.(a)(b)	29,200		953,380
QUALCOMM, Inc.(b)	77,300		4,168,789
RF Micro Devices, Inc.(a)(b)	517,600		5,201,880
SBC Communications, Inc.	283,550		7,392,148
Sprint Corp.(b)	531,300		8,723,946
UTStarcom, Inc.(a)(b)	222,900		8,262,903
Verizon Communications	329,588		11,561,947
Western Wireless Corp.(a)	59,000		1,083,240

			123,856,491

Tobacco — 0.5%
Altria Group, Inc.	230,000		12,516,600
R.J. Reynolds Tobacco Holdings, Inc.(b)	101,500		5,902,225

			18,418,825

Trucking & Shipping — 0.4%
J.B. Hunt Transport Services, Inc.(a)(b)	120,000		3,241,200
Knight Transportation, Inc.(a)	9,300		238,545
United Parcel Service, Inc. (Class “B” Stock)(b)	168,700		12,576,585

			16,056,330

Utilities – Electric — 1.1%
Alliant Energy Corp.	16,300		405,870
Cleco Corp.	4,400		79,112
Constellation Energy Group, Inc.(b)	50,700		1,985,412
Dominion Resources, Inc.(b)	14,700		938,301
DTE Energy Co.(b)	8,900		350,660
Edison International(a)(b)	271,500		5,953,995
Entergy Corp.	76,900		4,393,297
Exelon Corp.	191,800		12,727,848
NiSource, Inc.(b)	154,400		3,387,536
PPL Corp.(b)	133,800		5,853,750
Public Service Enterprise Group, Inc.(b)	12,800		560,640

SEE NOTES TO FINANCIAL STATEMENTS.

B31




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Utilities – Electric (cont’d.)
TXU Corp.(b)	187,000	$	4,435,640
Weststar Energy, Inc.	28,100		569,025

			41,641,086

Utilities – Gas
Southern Union Co.(a)(b)	7,400		136,160
UGI Corp.	2,500		84,750

			220,910

Waste Management
Republic Services, Inc.	5,100		130,713

Wire & Cable
Encore Wire Corp.(a)	600		10,626

TOTAL COMMON STOCKS (cost $2,196,433,925)			2,469,445,013

CONTINGENT VALUE OBLIGATION
Progress Energy, Inc.(a)(g) (cost $4,459)	9,100		0


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)
LONG-TERM BONDS — 21.8%
Aerospace — 0.3%
General Dynamics Corp., Sr. Notes
4.50%	08/15/10	A2	$	2,125	$	2,171,907
Lockheed Martin Corp., Gtd. Notes
7.70%	06/15/08	Baa2		2,800		3,251,755
Northrop Grumman Corp., Notes
7.125%	02/15/11	Baa3		3,500		4,048,055
Raytheon Co., Notes
4.50%	11/15/07	Baa3		370		375,144
8.30%	03/01/10	Baa3		1,400		1,679,871
United Technologies Corp., Notes
6.35%	03/01/11	A2		825		921,692

						12,448,424

Airlines — 0.1%
Continental Airlines, Inc., Pass-thru Certs.
6.648%	09/15/17	Baa3		516		503,903
Delta Air Lines, Inc., Pass-thru Certs.
7.111%	09/18/11	Baa2		430		433,601
7.57%	11/18/10(b)	Baa2		905		937,529

						1,875,033

Asset Backed Securities — 0.2%
Lehman Brothers, Inc. TRAINS HY-1-2003(f)
8.685%	05/15/13	B1		707		781,074
MBNA Master Credit Card Trust Ser. 1999-J, Cl. A
7.00%	02/15/12	Aaa		1,830		2,115,267
Ser. 2000-E, Cl. A
7.80%	10/15/12	Aaa		2,940		3,542,645

						6,438,986


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Automobiles & Trucks — 0.2%
Auburn Hills Trust, Debs.
12.375%	05/01/20	A3	$	850	$	1,224,694
DaimlerChrysler NA Holdings Corp., Notes
6.50%	11/15/13	A3		940		990,205
Equus Cayman Finance Ltd., Notes
5.50%	09/12/08	Ba1		315		319,380
Ford Motor Co., Notes(b)
7.45%	07/16/31	Baa1		3,055		3,087,142
Hyundai Motor Manufacturing LLC, Gtd. Notes
5.30%	12/19/08	Ba1		500		501,496
General Motors Corp., Notes
7.20%	01/15/11(b)	Baa1		580		637,702
8.375%	07/15/33(b)	Baa1		1,085		1,259,482
Lear Corp., Gtd. Notes(b)
8.11%	05/15/09	Ba1		770		905,712

						8,925,813

Banks and Savings & Loans — 0.2%
Bank One Corp., Sub. Notes
7.875%	08/01/10	A1		2,250		2,702,725
Wachovia Bank NA, Sub. Notes
7.80%	08/18/10	Aa3		2,100		2,533,589
Wells Fargo Bank, Sub. Notes
6.45%	02/01/11	Aa1		2,000		2,245,682

						7,481,996

Cable & Pay Television Systems — 0.2%
Continental Cablevision, Inc., Sr. Notes
8.30%	05/15/06	Baa3		4,000		4,484,720
Cox Communications, Inc., Notes
4.625%	06/01/13	Baa2		635		612,203
7.125%	10/01/12(b)	Baa2		1,035		1,193,782
Rogers Cablesystems, Inc. (Canada), Sr. Notes
10.00%	03/15/05	Ba2		1,750		1,876,875

						8,167,580

Chemicals — 0.1%
Dow Chemical Co., Notes
5.75%	11/15/09	A3		300		321,195
5.97%	01/15/09	A3		390		419,561
6.00%	10/01/12(b)	A3		700		736,845
Eastman Chemical Co., Notes
7.00%	04/15/12	Baa2		445		491,649
ICI Wilmington, Inc., Gtd. Notes
5.625%	12/01/13	Baa3		720		723,467

						2,692,717

Collateralized Mortgage Obligations — 1.0%
Bank of America Commercial Mortgage, Inc.
4.873%	03/11/41	AAA(e)		1,800		1,825,238
Greenwich Capital Commercial Funding Corp.
4.533%	12/05/12	AAA(e)		6,880		6,905,352
J.P. Morgan Commercial Mortgage Finance Corp.
5.255%	07/12/37	Aaa		2,100		2,164,597
7.371%	08/15/32	Aaa		8,250		9,564,363
KeyCorp
7.727%	05/17/32	Aaa		9,000		10,576,203

SEE NOTES TO FINANCIAL STATEMENTS.

B32




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Collateralized Mortgage Obligations (cont’d.)
LB-UBS Commercial Mortgage Trust
4.83%	11/15/27	Aaa	$	1,460	$	1,485,672
PNC Mortgage Acceptance Corp.
7.33%	12/10/32	AAA(e)		2,100		2,421,460
Washington Mutual, Inc.
4.38%	12/25/32	Aaa		2,000		2,006,700
5.51%	04/26/32(h)	Aaa		1,815		1,841,745

						38,791,330

Commercial Services
Equifax, Inc., Notes
4.95%	11/01/07	Baa1		320		334,693

Computers
Hewlett-Packard Co., Notes
7.15%	06/15/05	A3		240		258,030
International Business Machines Corp., Debs.(b)
5.875%	11/29/32	A1		1,150		1,157,110

						1,415,140

Computer Services — 0.1%
Computer Associates International, Inc., Sr. Notes
6.375%	04/15/05	Baa3		575		601,079
Computer Sciences Corp., Notes
6.75%	06/15/06	A2		290		318,029
Electronic Data Systems Corp., Notes
6.00%	08/01/13	Baa3		840		825,413
6.85%	10/15/04(b)	Baa3		390		403,597

						2,148,118

Construction
CRH America, Inc., Gtd. Notes
5.30%	10/15/13	Baa1		1,000		1,008,997
6.40%	10/15/33	Baa1		500		511,364

						1,520,361

Containers — 0.1%
Pactiv Corp., Debs.
7.95%	12/15/25	Baa2		2,050		2,439,568
Sealed Air Corp., Notes
5.625%	07/15/13	Baa3		380		388,850
6.875%	07/15/33	Baa3		280		296,379
8.75%	07/01/08	Baa3		190		226,382

						3,351,179

Diversified Operations — 0.1%
Bombardier, Inc. (Canada), Notes(b)
6.75%	05/01/12	Baa3		1,095		1,196,288
Cendant Corp., Notes
6.875%	08/15/06	Baa1		1,320		1,448,227
Honeywell International, Inc., Bonds
6.125%	11/01/11	A2		1,095		1,204,071

						3,848,586

Drugs & Medical Supplies — 0.3%
Bristol-Myers Squibb Co., Notes
5.75%	10/01/11	A1		555		599,745
Columbia / HCA Healthcare Corp., Notes
6.91%	06/15/05	Ba1		1,015		1,069,170


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Drugs & Medical Supplies (cont’d.)
Pharmacia Corp., Debs.
6.50%	12/01/18	Aaa	$	1,550	$	1,801,058
6.75%	12/15/27	Aaa		2,215		2,535,717
Schering Plough Corp., Notes
5.30%	12/01/13(b)	A3		1,365		1,388,818
6.50%	12/01/33	A3		500		520,118
Wyeth, Notes
5.50%	02/01/14(b)	Baa1		1,835		1,855,947
6.45%	02/01/24	Baa1		650		666,123

						10,436,696

Financial Services — 1.2%
Boeing Capital Corp., Sr. Notes(b)
6.10%	03/01/11	A3		925		998,372
Bunge Ltd. Finance Corp., Notes
5.875%	05/15/13	Baa3		1,345		1,361,304
Capital One Bank Corp., Notes
6.50%	07/30/04	Baa2		300		308,242
6.50%	06/13/13	Baa3		700		733,889
6.875%	02/01/06(b)	Baa2		1,540		1,665,969
Capital One Financial Corp., Notes
6.25%	11/15/13	Baa3		540		553,603
CIT Group, Inc., Sr. Notes
5.50%	11/30/07	A2		990		1,059,970
Citigroup, Inc., Notes
5.625%	08/27/12	Aa2		2,800		2,955,797
6.00%	10/31/33(b)	Aa2		935		934,904
6.625%	06/15/32(b)	Aa2		515		557,893
Credit Suisse First Boston USA, Inc., Notes(b)
5.50%	08/15/13	Aa3		1,740		1,793,096
ERAC USA Finance Co., Bonds(d)
6.95%	03/01/04	Baa1		7,500		7,560,705
Ford Motor Credit Co., Notes(b)
7.00%	10/01/13	A3		2,390		2,520,683
General Electric Capital Corp., Notes
5.875%	02/15/12	Aaa		160		171,957
6.125%	02/22/11	Aaa		3,230		3,553,375
6.75%	03/15/32	Aaa		2,100		2,324,954
General Motors Acceptance Corp., Sr. Unsub. Notes
5.85%	01/14/09(b)	A3		2,800		2,965,152
6.125%	01/22/08	A3		575		617,113
6.875%	08/28/12(b)	A3		1,115		1,199,546
HBOS PLC (United Kingdom), Sub. Notes(b)
6.00%	11/01/33	Aa3		1,110		1,103,478
Household Finance Corp., Notes
6.375%	11/27/12	A1		155		170,043
6.75%	05/15/11	A1		430		484,070
7.00%	05/15/12	A1		1,300		1,482,478
J.P. Morgan Chase & Co.
Sr. Notes
4.50%	11/15/10	A1		740		745,881
5.25%	05/30/07	A1		210		224,158
Sub. Notes
6.50%	01/15/09	A2		1,100		1,221,856
John Deere Capital Corp., Notes(b)
7.00%	03/15/12	A3		1,675		1,929,582

SEE NOTES TO FINANCIAL STATEMENTS.

B33




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Financial Services (cont’d.)
Lehman Brothers Holdings, Inc., Notes
6.625%	01/18/12	A1	$	1,670	$	1,884,622
Morgan Stanley Group, Inc., Notes(b)
3.625%	04/01/08	Aa3		1,005		1,006,420
Santander Central Hispano Issuances, Bank Gtd. Notes
7.625%	09/14/10	Aa3		695		823,869
UFJ Finance Aruba AEC (Aruba), Bank Gtd. Notes
6.75%	07/15/13	Baa1		1,035		1,103,826

						46,016,807

Food & Beverage — 0.5%
Anheuser Busch Cos., Inc., Sr. Notes
6.00%	04/15/11	A1		1,530		1,702,001
Cadbury Schweppes US Finance, Notes
3.875%	10/01/08(b)	Baa2		810		806,322
5.125%	10/01/13	Baa2		860		854,400
ConAgra Foods, Inc., Notes
7.875%	09/15/10	Baa1		650		775,560
General Mills, Inc., Notes
5.125%	02/15/07	Baa2		350		371,790
Kellogg Co., Notes
6.60%	04/01/11	Baa2		1,875		2,101,298
Kraft Foods, Inc., Notes
4.625%	11/01/06(b)	A3		2,700		2,817,526
5.25%	06/01/07	A3		300		319,171
5.625%	11/01/11	A3		2,400		2,528,750
Miller Brewing Co., Notes
5.50%	08/15/13	Baa1		655		669,176
SABMiller PLC (United Kingdom), Bonds
6.625%	08/15/33	Baa1		950		1,004,356
Safeway, Inc., Notes
2.50%	11/01/05	Baa2		1,400		1,386,442
Tyson Foods, Inc., Notes
6.625%	10/17/05	Baa3		375		391,797
7.25%	10/01/06	Baa3		405		443,812
Unilever Capital Corp., Gtd. Notes
5.90%	11/15/32	A1		860		862,063

						17,034,464

Forest Products & Paper — 0.1%
MeadWestvaco Corp., Notes
2.75%	12/01/05	Baa2		1,010		1,001,463
Weyerhaeuser Co., Notes
5.50%	03/15/05(b)	Baa2		660		687,097
7.375%	03/15/32	Baa2		665		723,056

						2,411,616

Insurance
Axa (France), Sub. Notes
8.60%	12/15/30	A3		155		195,376
Commerce Group, Inc., Notes
5.95%	12/09/13	Baa2		335		339,743
Metlife, Inc., Sr. Notes
6.125%	12/01/11	A2		335		365,350
RLI Corp., Sr. Notes
5.95%	01/15/14	Baa3		400		398,300


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Insurance (cont’d.)
Royal & Sun Alliance Insurance Group PLC (United Kingdom), Gtd. Notes(b)
8.95%	10/15/29	Ba2	$	255	$	247,957
UnumProvident Corp., Sr. Notes
7.625%	03/01/11	Baa3		185		203,802

						1,750,528

Leisure & Tourism — 0.1%
Carnival Corp., Gtd. Notes(b)
3.75%	11/15/07	A3		1,445		1,447,582
Carnival PLC, Gtd. Notes
7.30%	06/01/07	Baa3		260		288,891
Harrahs Casinos Co., Inc., Gtd. Notes(b)
7.875%	12/15/05	Ba1		975		1,060,313

						2,796,786

Machinery — 0.1%
Caterpillar, Inc., Debs.
7.25%	09/15/09	A2		1,900		2,222,941

Media — 0.4%
Clear Channel Communications, Inc., Sr. Notes
4.40%	05/15/11	Baa3		910		888,546
8.00%	11/01/08	Ba1		575		665,562
Comcast Corp., Notes
5.30%	01/15/14(b)	Baa3		1,500		1,495,019
7.05%	03/15/33(b)	Baa3		560		609,175
Liberty Media Corp., Sr. Notes(b)
5.70%	05/15/13	Baa3		850		859,575
News America Holdings, Gtd. Notes
8.50%	02/15/05	Baa3		1,350		1,437,062
News America, Inc., Gtd. Notes
7.625%	11/30/28	Baa3		1,050		1,216,273
Time Warner, Inc., Gtd. Notes(d)
7.625%	04/15/31	Baa1		2,600		2,999,797
United News & Media PLC, Notes(d) (United Kingdom)
7.25%	07/01/04	Baa2		3,180		3,235,081
Viacom, Inc., Gtd. Notes(b)
7.875%	07/30/30	A3		865		1,075,999
Walt Disney Co., Sr. Notes
5.375%	06/01/07	Baa1		225		240,589
6.75%	03/30/06	Baa1		1,016		1,105,048

						15,827,726

Metals — Non Ferrous
Alcan, Inc., Notes
5.20%	01/15/14	Baa1		390		394,204
6.125%	12/15/33(b)	Baa1		900		905,483

						1,299,687

Municipals — 0.2%
Illinois St., Taxable Pension, G.O.
5.10%	06/01/33	Aa3		6,780		6,201,530

Oil & Gas — 0.4%
B.J. Services Co., Sr. Notes
7.00%	02/01/06	Baa2		4,000		4,273,820
Chesapeake Energy Corp., Gtd. Notes
8.125%	04/01/11	Ba3		24		26,164

SEE NOTES TO FINANCIAL STATEMENTS.

B34




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Oil & Gas (cont’d.)
Conoco, Inc., Sr. Notes
6.95%	04/15/29	A3	$	570	$	646,402
ConocoPhillips, Notes
8.75%	05/25/10	A3		2,505		3,129,249
Devon Financing Corp., Gtd. Notes(b)
6.875%	09/30/11	Baa2		190		215,446
Halliburton Co., Notes
2.656%	10/17/05(h)	Baa2		380		384,133
5.50%	10/15/10	Baa2		880		920,319
7.60%	08/15/96	Baa2		210		226,975
Kerr-McGee Corp., Gtd. Notes
5.875%	09/15/06	Baa3		930		997,983
Marathon Oil Corp., Notes(b)
6.125%	03/15/12	Baa1		450		486,651
Occidental Petroleum Corp., Sr. Notes
6.75%	01/15/12(b)	Baa1		735		828,994
7.65%	02/15/06(b)	Baa1		2,800		3,068,271
Suncor Energy, Inc., Bonds
5.95%	12/01/34	A3		445		441,734

						15,646,141

Oil & Gas Exploration/Production — 0.4%
Anadarko Finance Co., Gtd. Notes
7.50%	05/01/31	Baa1		220		257,725
Devon Energy Corp., Sr. Notes
2.75%	08/01/06	Baa2		2,390		2,391,111
Parker & Parsley Petroleum Co., Sr. Notes
8.875%	04/15/05	Ba1		2,725		2,916,429
Pemex Project Funding Master Trust, Notes
7.875%	02/01/09	Baa1		1,750		1,975,750
8.50%	02/15/08	Baa1		1,430		1,630,200
Petroleos Mexicanos (Mexico)
9.25%	03/30/18	Baa1		850		990,250
9.50%	09/15/27(b)	Baa1		2,200		2,618,000
Transocean, Inc., Notes
7.50%	04/15/31	Baa2		145		166,050
Valero Energy Corp., Notes
6.875%	04/15/12	Baa3		1,530		1,693,097
Woodside Petroleum Ltd., Notes
5.00%	11/15/13	Baa1		1,400		1,403,121

						16,041,733

Real Estate Investment Trust — 0.4%
EOP Operating LP, Notes
6.50%	06/15/04	Baa1		6,000		6,132,312
ERP Operating LP, Notes
6.63%	04/13/05	Baa1		1,650		1,748,550
7.10%	06/23/04(d)	Baa1		2,375		2,433,560
Felcor Suites LP, Gtd. Notes(b)
7.375%	10/01/04	B1		220		225,225
Simon Debartolo Group, Inc., Notes
6.75%	06/15/05	Baa2		5,000		5,323,120

						15,862,767

Retail — 0.3%
Albertson’s, Inc., Sr. Notes(b)
7.50%	02/15/11	Baa2		565		647,690


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Retail (cont’d.)
Kroger Co., Gtd. Notes
7.25%	06/01/09	Baa3	$	3,400	$	3,873,331
May Department Stores Co., Notes
6.90%	01/15/32	Baa1		215		231,561
Saks, Inc., Gtd. Notes
7.00%	12/01/13	B1		18		18,360
Target Corp., Notes
5.95%	05/15/06	A2		1,000		1,080,919
7.50%	07/15/06	A2		1,150		1,289,602
Toys “R” Us, Inc., Notes(b)
7.375%	10/15/18	Baa3		150		149,894
Wal-Mart Stores, Inc., Sr. Notes
6.875%	08/10/09	Aa2		1,540		1,774,156
7.55%	02/15/30	Aa2		1,005		1,236,840

						10,302,353

Structured Notes — 0.1%
DJ TRAC-X NA HY S2 T1(b)
7.375%	03/25/09	Ba3		950		990,375
DJ TRAC-X NA HY S2 T2(b)
6.05%	03/25/09	Ba3		1,000		1,023,750

						2,014,125

Telecommunications — 0.9%
AT&T Corp., Sr. Notes
7.25%	11/15/06	Baa2		620		685,619
8.75%	11/15/31	Baa2		645		753,723
AT&T Wireless Services, Inc., Sr. Notes
7.35%	03/01/06	Baa2		1,756		1,920,235
8.75%	03/01/31	Baa2		539		665,034
British Telecom PLC, Bonds (United Kingdom)
7.00%	05/23/07	Baa1		1,265		1,413,005
8.625%	12/15/30	Baa1		1,065		1,392,598
CenturyTel, Inc., Sr. Notes
7.875%	08/15/12	Baa2		1,100		1,302,869
Citizens Communications Co., Notes
8.50%	05/15/06(b)	Baa2		1,725		1,883,461
9.25%	05/15/11	Baa2		400		472,897
Deutsche Telekom International Finance BV, Gtd. Notes (Netherlands)
5.25%	07/22/13(b)	Baa3		2,310		2,333,606
8.75%	06/15/30	Baa3		300		383,228
9.25%	06/01/32	Baa3		80		109,771
INTELSAT, Notes
6.50%	11/01/13	Baa3		750		782,545
Koninlijke (Royal) KPN NV, Sr. Notes (Netherlands)(b)
8.00%	10/01/10	Baa1		1,720		2,057,579
Sprint Capital Corp., Gtd. Notes
6.875%	11/15/28	Baa3		2,195		2,141,951
Telecom de Puerto Rico, Gtd. Notes
6.65%	05/15/06	Baa1		2,700		2,926,430
6.80%	05/15/09	Baa1		3,065		3,426,477
Telecom Italia Capital, Gtd. Notes
5.25%	11/15/13	Baa2		1,325		1,327,638
Telefonica Europe BV, Gtd. Notes (Netherlands)
7.75%	09/15/10	A3		1,150		1,365,319
Telus Corp., Notes
8.00%	06/01/11	Ba1		1,255		1,467,455

SEE NOTES TO FINANCIAL STATEMENTS.

B35




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Telecommunications (cont’d.)
Verizon Global Funding Corp., Notes(b)
7.75%	12/01/30	A2	$	1,165	$	1,368,537
Vondafone Group PLC, Notes (United Kingdom)
5.00%	12/16/13	A2		940		936,114
7.75%	02/15/10	A2		800		948,156

						32,064,247

Tobacco — 0.1%
Altria Group, Inc., Notes
5.625%	11/04/08	Baa2		1,510		1,549,017
7.65%	07/01/08	Baa2		600		664,082

						2,213,099

Transportation — 0.1%
Norfolk Southern Corp., Bonds
7.80%	05/15/27	Baa1		1,475		1,771,556
Union Pacific Corp., Notes
6.625%	02/01/08	Baa2		1,390		1,542,948
6.65%	01/15/11	Baa2		515		574,336

						3,888,840

Utilities — 0.6%
Arizona Public Service Co., Notes
7.625%	08/01/05	Baa1		5,000		5,390,775
CenterPoint Energy Houston Electric LLC, Notes
5.70%	03/15/13	Baa2		740		773,301
6.95%	03/15/33	Baa2		590		653,579
7.875%	04/01/13	Ba1		620		701,900
Consumers Energy Co., First Mtge.
5.375%	04/15/13	Baa3		325		326,503
Dominion Resources, Inc., Sr. Notes
5.125%	12/15/09	Baa1		970		1,012,472
Energy East Corp., Notes
6.75%	09/15/33	Baa2		630		661,041
FirstEnergy Corp., Notes(b)
7.375%	11/15/31	Baa2		735		751,888
Florida Power & Light Co.
5.95%	10/01/33	Aa3		610		624,817
Hydro-Quebec (Canada)
8.00%	02/01/13	A1		1,500		1,866,685
NiSource Finance Corp., Gtd. Notes
7.625%	11/15/05	Baa3		600		655,498
Oncor Electric Delivery Co., Debs.
6.375%	01/15/15	Baa1		345		375,060
7.00%	09/01/22	Baa2		510		561,864
7.25%	01/15/33	Baa1		250		284,396
PacifiCorp, First Mtge.
5.45%	09/15/13	A3		300		311,245
Pepco Holdings, Inc., Notes
5.50%	08/15/07	Baa2		565		604,388
Pinnacle One Partners LP, Sr. Notes
8.83%	08/15/04	Ba2		4,100		4,248,625
PPL Electric Utilities, Second Mtge.
6.25%	08/15/09	Baa1		1,500		1,656,613
PSE&G Power LLC, Gtd. Notes
6.95%	06/01/12(b)	Baa1		685		772,533
7.75%	04/15/11	Baa1		180		211,865


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
Utilities (cont’d.)
Xcel Energy, Inc., Sr. Notes
3.40%	07/01/08	Baa3	$	605	$	590,828
7.00%	12/01/10	Baa3		190		215,451

						23,251,327

Foreign Government Bonds — 0.1%
Quebec Province, Debs. (Canada)
5.75%	02/15/09	A1		500		546,682
6.125%	01/22/11	A1		395		440,307
Republic of Italy (Italy)
5.375%	06/15/33(b)	AA(e)		800		770,579
6.00%	02/22/11	AA(e)		390		434,740

						2,192,308

Waste Management — 0.1%
Waste Management, Inc., Gtd. Notes
7.75%	05/15/32	Baa3		1,800		2,121,181

Mortgage Backed Securities — 9.1%
Federal Home Loan Mortgage Corp.
4.50%	TBA			4,000		3,998,752
5.50%	TBA			8,000		8,095,000
6.00%	TBA			7,000		7,231,875
6.50%	05/01/14-09/01/14(j)			1,275		1,350,828
7.00%	10/01/32(j)			626		662,664
7.00%	TBA			13,000		13,751,556
Federal National Mortgage Assn.
4.208%	04/01/33(h)(j)			2,374		2,400,838
4.50%	TBA			8,500		8,507,973
5.00%	TBA			65,000		65,461,269
5.173%	07/01/33(h)(j)			3,975		4,081,438
5.50%	03/01/16-06/01/23(j)			5,151		5,317,508
5.50%	TBA			58,000		58,743,096
6.00%	05/15/11-04/01/33(b)			21,984		23,769,073
6.00%	TBA			39,300		40,666,613
6.50%	07/01/17-11/01/33(j)			9,778		10,256,822
6.50%	TBA			10,500		10,979,063
7.00%	08/01/11-06/01/32(j)			2,642		2,811,399
7.00%	TBA			3,000		3,176,250
7.25%	01/15/10(b)			23,355		27,536,386
7.50%	06/01/12-05/01/32(j)			5,348		5,717,162
7.50%	TBA			6,500		6,944,847
Government National Mortgage Assn.
5.50%	08/15/33			1,004		1,022,053
5.50%	TBA			3,500		3,557,967
6.50%	10/15/23-08/15/32(j)			19,506		20,607,780
8.00%	01/15/24-04/15/25(j)			1,043		1,140,998

						337,789,210

U.S. Government Agency Obligations — 3.7%
Federal Home Loan Mortgage Corp.
3.625%	09/15/08			2,820		2,838,660
5.625%	03/15/11			2,155		2,341,940
5.75%	01/15/12(b)			250		272,348

SEE NOTES TO FINANCIAL STATEMENTS.

B36




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
LONG-TERM BONDS (Continued)
U.S. Government Agency Obligations (cont’d.)
Federal National Mortgage Assn.
3.25%	08/15/08(b)		$	8,905	$	8,834,152
5.25%	08/01/12(b)			6,535		6,700,865
5.50%	07/18/12(b)			7,200		7,374,420
6.625%	09/15/09			4,195		4,796,894
United States Treasury Bonds
5.375%	02/15/31			1,200		1,251,422
6.00%	02/15/26			1,160		1,284,926
8.125%	08/15/21(b)			760		1,036,480
8.875%	08/15/17			3,315		4,694,869
9.25%	02/15/16			5,820		8,353,749
United States Treasury Notes
1.625%	09/30/05(b)			10,000		9,996,090
1.875%	11/30/05(b)			22,540		22,582,262
1.875%	12/31/05			1,025		1,025,681
2.00%	05/15/06(b)			9,610		9,611,874
2.375%	08/15/06(b)			8,595		8,641,335
2.625%	11/15/06(b)			14,715		14,844,904
4.25%	11/15/13			1,800		1,798,031
United States Treasury Strips, P/O
Zero	05/15/18			20,215		9,598,587
Zero	05/15/19(b)			15,225		6,772,217
Zero	02/15/25			760		236,685
Zero	05/15/26			7,500		2,170,433

						137,058,824

TOTAL LONG-TERM BONDS (cost $788,543,066)						805,884,892

TOTAL LONG-TERM INVESTMENTS (cost $2,984,981,450)						3,275,329,905


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
SHORT-TERM INVESTMENTS — 37.5%
Commercial Paper — 5.0%
Hartford Financial Services Group, Inc.(c)
1.20%	02/06/04	P-1	$	26,439	$	26,407,273
Kraft Foods, Inc.(c)(i)
1.28%	02/11/04	P-1		15,000		14,978,133
Reed Elsevier, Inc.(c)(i)
1.20%	01/30/04	P-1		15,000		14,985,500
1.22%	01/13/04	P-1		29,550		29,537,983
1.22%	02/11/04	P-1		10,000		9,986,106
1.22%	02/17/04	P-1		10,000		9,984,072
Sara Lee Corp.(c)(i)
1.15%	02/09/04	P-1		30,000		29,960,709
1.15%	02/10/04	P-1		35,000		34,956,396
1.15%	02/11/04	P-1		15,000		14,980,834

						185,777,006

U.S. Government Agency Obligation — 0.7%
United States Treasury Bills(d)(i)
0.87%	03/18/04			25,400		25,352,735



	Shares
Mutual Fund — 31.8%
Dryden Core Investment Fund —Taxable Money Market Series (cost $1,174,109,329; Note 4)(c)	1,174,109,329		1,174,109,329

TOTAL SHORT-TERM INVESTMENTS (cost $1,385,239,070)			1,385,239,070

TOTAL INVESTMENTS — 126.2% (cost $4,370,220,520; Note 6)			4,660,568,975
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(k)			(142,319	)
LIABILITIES IN EXCESS OF OTHER ASSETS — (26.2)%			(966,850,174	)

TOTAL NET ASSETS — 100%		$	3,693,576,482

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt
G.O.		General Obligation
NR		Not rated by Moody’s or Standard and Poor’s.
TBA		Securities purchased on a forward commitment basis.

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $715,225,407; cash collateral $740,622,610 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Standard & Poor’s rating.

(f)

(g)	Indicates a fair valued security.

(h)	Indicates a variable rate security.

(i)	Rate quoted represents yield-to-maturity as of purchase date.

SEE NOTES TO FINANCIAL STATEMENTS.

B37




		*FLEXIBLE MANAGED PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

(j)	Security segregated as collateral for TBA’s.

(k)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
671	S&P 500 Index	Mar 04	$	178,564,787	$	186,303,150	$	7,738,363
422	S&P MidCap 400 Index	Mar 04		117,562,275		121,546,550		3,984,275
62	U.S. Treasury Bonds	Mar 04		6,747,222		6,777,375		30,153
684	U.S. Treasury 5Yr Notes	Mar 04		76,112,060		76,351,500		239,440

								11,992,231

Short Positions:
291	U.S. Treasury 10Yr Notes	Mar 04		32,460,014		32,669,297		(209,283	)
44	U.S. Treasury 2Yr Notes	Mar 04		9,380,819		9,418,063		(37,244	)

								(246,527	)

							$	11,745,704

SEE NOTES TO FINANCIAL STATEMENTS.

B38




		*GLOBAL PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.7%
COMMON STOCKS	Shares	Value (Note 2)
Australia — 2.7%
Amcor, Ltd.(b)	763,300	$	4,750,396
BHP Billiton, Ltd.	880,067		8,083,025
Rio Tinto, Ltd.	174,846		4,900,643

			17,734,064

Brazil — 1.1%
Companhia de Bebidas das Americas, ADR	132,300		3,374,973
Unibanco — Uniao de Bancos Brasileiros SA, ADR(b)	164,900		4,114,255

			7,489,228

Finland — 0.4%
Nokia Oyj	142,400		2,462,540

France — 2.2%
Total SA	77,385		14,387,657

Republic of Germany — 4.3%
Deutsche Boerse AG	144,598		7,906,553
SAP AG, ADR(b)	290,200		12,060,712
Siemens AG	111,700		8,946,697

			28,913,962

Hong Kong — 1.2%
Cosco Pacific, Ltd.	6,326,000		8,311,087

Ireland — 1.5%
Anglo Irish Bank Corp., PLC	631,400		9,963,174

Israel — 1.2%
Teva Pharmaceutical Industries, Ltd., ADR(b)	136,500		7,740,915

Italy — 2.1%
Eni SpA	393,500		7,425,268
Riunione Adriatica di Sicurta SpA	398,843		6,791,592

			14,216,860

Japan — 10.3%
Aoyama Trading Co., Ltd.	608,300		12,033,181
Canon, Inc.	122,000		5,680,508
Mitsubishi Corp.(b)	1,389,000		14,723,374
Mitsubishi Tokyo Financial Group, Inc.	320		2,496,221
Mitsui Mining & Smelting Co., Ltd.	2,221,000		9,222,217
Sumitomo Mitsui Financial Group, Inc.	435		2,317,673
Sumitomo Realty & Development Co., Ltd.	1,419,000		12,499,169
Taisei Corp.	2,729,000		9,981,973

			68,954,316

Netherlands — 1.0%
ING Groep NV	296,300		6,910,419

South Korea — 1.6%
Samsung Electronics Co., Ltd.	27,800		10,522,702

Spain — 2.2%
Banco Popular Espanol SA(b)	121,649		7,257,808
Telefonica SA(a)	501,782		7,367,224

			14,625,032

Switzerland — 4.0%
Novartis AG, ADR	174,700		8,016,983


COMMON STOCKS
(Continued)	Shares	Value (Note 2)
Switzerland (cont’d.)
Roche Holding AG, ADR	96,300	$	9,713,704
UBS AG	126,800		8,684,018

			26,414,705

Taiwan — 1.3%
Taiwan Semiconductor Manufacturing Co., Ltd.(a)	4,655,880		8,708,347

United Kingdom — 12.5%
AstraZeneca PLC, ADR(b)	147,100		7,116,698
Exel PLC	1,204,502		15,923,838
GKN PLC	1,303,246		6,229,130
HSBC Holdings PLC	541,400		8,509,470
Reckitt Benckiser PLC	243,900		5,518,850
Royal Bank of Scotland Group PLC	239,789		7,065,596
Signet Group PLC	4,512,100		8,319,662
Tesco PLC	1,860,900		8,586,407
Vodafone Group PLC	6,317,854		15,664,232

			82,933,883

United States — 46.1%
Air Products and Chemicals, Inc.	126,900		6,704,127
Allergan, Inc.(b)	80,400		6,175,524
Amgen, Inc.(a)	144,800		8,948,640
Anheuser-Busch Cos., Inc.	62,400		3,287,232
Bank of New York Co., Inc.	251,300		8,323,056
Bed Bath & Beyond, Inc.(a)	288,100		12,489,135
BJ Services Co.(a)	212,300		7,621,570
Boise Cascade Corp.	127,400		4,186,364
Brinker International, Inc.(a)(b)	150,800		5,000,528
Caremark Rx, Inc.(a)(b)	180,400		4,569,532
CarMax, Inc.(a)	12,400		383,532
Cisco Systems, Inc.(a)(b)	440,800		10,707,032
Citigroup, Inc.(b)	320,600		15,561,924
Clear Channel Communications, Inc.(b)	153,400		7,183,722
Colgate-Palmolive Co.	53,000		2,652,650
Comcast Corp. (Special Class “A” Stock)(a)(b)	156,300		4,889,064
Costco Wholesale Corp.(a)	176,800		6,573,424
Dell, Inc.(a)	217,000		7,369,320
General Electric Co.	300,300		9,303,294
Gilead Sciences, Inc.(a)	139,900		8,133,786
Goldman Sachs Group, Inc.	56,900		5,617,737
Hughes Electronics Corp.(a)	299,486		4,956,493
Intel Corp.	218,500		7,035,700
InterActiveCorp(a)(b)	497,000		16,863,210
International Paper Co.	161,400		6,957,954
KLA-Tencor Corp.(a)	57,700		3,385,259
Medimmune, Inc.(a)	58,700		1,490,980
Merrill Lynch & Co., Inc.	129,300		7,583,445
Microsoft Corp.	476,000		13,109,040
Motorola, Inc.	104,800		1,474,536
Northrop Grumman Corp.(b)	77,100		7,370,760
Pfizer, Inc.	371,560		13,127,215
Phelps Dodge Corp.(a)	43,200		3,287,088
Procter & Gamble Co.(b)	48,100		4,804,228
Schlumberger, Ltd.(b)	122,300		6,692,256
Smith International, Inc.(a)	196,100		8,142,072

SEE NOTES TO FINANCIAL STATEMENTS.

B39




		*GLOBAL PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS
(Continued)	Shares	Value (Note 2)
United States (cont’d.)
State Street Corp.(b)	127,700	$	6,650,616
Texas Instruments, Inc.	230,500		6,772,090
UnitedHealth Group, Inc.(b)	142,900		8,313,922
Univision Communications, Inc. (Class “A” Stock)(a)(b)	205,300		8,148,357
Viacom, Inc. (Class “B” Stock)(b)	198,400		8,804,992
Wal-Mart Stores, Inc.(b)	177,700		9,426,985
Wendy’s International, Inc.	173,600		6,812,064

			306,890,455

TOTAL LONG-TERM INVESTMENTS (cost $541,812,896)			637,179,346


SHORT-TERM INVESTMENT — 22.0%	Shares	Value (Note 2)
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series (cost $146,019,132; Note 4)(c)	146,019,132	$	146,019,132

TOTAL INVESTMENTS — 117.7% (cost $687,832,028; Note 6)			783,198,478
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS, NET(d)			(48,427	)
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS — (17.7)%			(117,519,689	)

NET ASSETS — 100%		$	665,630,362

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $132,760,909; cash collateral of $139,928,992 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(d)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Forward Foreign Currency Contracts	Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
Purchased:
Eurodollars expiring 1/2/04	$	530,960	$	534,447	$	3,487
Eurodollars expiring 1/5/04		1,360,955		1,360,761		(194	)

						3,293

Sold:
Pound Sterling expiring 1/2/04		530,960		564,575		(33,615	)
Pound Sterling expiring 1/5/04		1,360,955		1,361,183		(228	)
Swedish Krona expiring 1/2/04		1,081,481		1,099,358		(17,877	)

						(51,720	)

					$	(48,427	)

SEE NOTES TO FINANCIAL STATEMENTS.

B40




		*GLOBAL PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

The industry classification of portfolio holdings, forward foreign currency contracts and other liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2003 were as follows:


Mutual Fund	22.0	%
Pharmaceuticals	7.8	%
Commercial Banks	6.3	%
Capital Markets	5.5	%
Semiconductors & Semiconductor Equipment	5.5	%
Media	5.1	%
Specialty Retail	5.0	%
Diversified Financial Services	4.6	%
Software	3.8	%
Food & Staples Retailing	3.7	%
Energy Equipment & Services	3.4	%
Metals & Mining	3.3	%
Oil & Gas	3.3	%
Industrial Conglomerates	3.2	%
Biotechnology	2.8	%
Internet & Catalog Retail	2.5	%
Air Freight & Couriers	2.4	%
Wireless Telecommunication Services	2.4	%
Trading Companies & Distributors	2.2	%
Communications Equipment	2.2	%
Household Products	1.9	%
Healthcare Providers & Services	1.9	%
Real Estate	1.9	%
Hotels, Restaurants & Leisure	1.8	%
Paper & Forest Products	1.7	%


Construction & Engineering	1.5	%
Transportation Infrastructure	1.2	%
Aerospace & Defense	1.1	%
Computers & Peripherals	1.1	%
Diversified Telecommunication Services	1.1	%
Insurance	1.0	%
Chemicals	1.0	%
Beverages	1.0	%
Auto Components	0.9	%
Office Electronics	0.9	%
Containers & Packaging	0.7	%

	117.7	%
Forward foreign currency contracts	—
Other liabilities in excess of other assets	(17.7	)%

	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

B41




		*GOVERNMENT INCOME PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.9%	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Asset Backed Securities — 7.1%
Bear Stearns Commercial Mortgage, Series 2000-WF1, Class A1	7.64%	02/15/32	$	2,457	$	2,704,143
First Union National Bank Commercial Mortgage Trust, Series 2000-C1, Class A1	7.739%	05/17/32		2,122		2,370,468
First Union National Bank Commercial Mortgage Trust, Series 2000-C2, Class A1	6.94%	10/15/32		2,381		2,604,726
First Union-Lehman Brothers Commercial Mortgage Trust, Series 1997-C1, Class A3	7.38%	04/18/29		5,500		6,122,779
GS Mortgage Securities Corp. II, Series 2003-C1, Class A3	4.608%	01/10/40		6,800		6,714,453
KeyCorp., Series 2000-C1, Class A2	7.727%	05/17/32		3,000		3,525,401
MBNA Master Credit Card Trust, Series 1999-J, Class A	7.00%	02/15/12		3,200		3,698,828
Merrill Lynch Mortgage Investors, Inc., Series 1996-C1, Class A3	7.42%	04/25/28		385		397,245
Morgan Stanley Chase Capital, Inc., Series 2001-TOP1, Class A2	6.32%	02/15/33		2,634		2,852,867
Mortgage Capital Funding, Inc., Series 1998-MC2, Class A1	6.325%	06/18/30		662		681,150
Westpac Securitization Trust Limited, Series 1998-1G, Class A (Australia)(c)(d)	1.30%	07/19/29		1,014		1,016,049

						32,688,109

Collateralized Mortgage Obligations — 6.0%
Federal Home Loan Mortgage Corp., Series 2496, Class PM	5.50%	09/15/17		2,819		2,887,974
Federal Home Loan Mortgage Corp., Series 2501, Class MC	5.50%	09/15/17		2,000		2,083,913
Federal Home Loan Mortgage Corp., Series 2513, Class HC	5.00%	10/15/17		2,339		2,287,215
Federal Home Loan Mortgage Corp., Series 2518, Class PV	5.50%	06/15/19		1,920		1,922,181
Federal National Mortgage Association, Series 1993-76, Class B	6.00%	06/25/08		79		79,338
Federal National Mortgage Association, Series 2002-18, Class PC	5.50%	04/25/17		5,000		5,244,833
Federal National Mortgage Association, Series 2002-57, Class ND	5.50%	09/25/17		2,600		2,711,639
Federal National Mortgage Association, Series 2002-94, Class HQ	4.50%	01/25/18		6,419		6,121,354
Federal National Mortgage Association, Series 2003-59, Class ZH	4.50%	08/25/18		695		695,329
Federal National Mortgage Association, Series 2003-85, Class ZH	4.50%	09/25/18		2,737		2,742,564
Washington Mutual, Series 2002-AR4, Class A7	5.51%	04/26/32		726		736,698

						27,513,038

Mortgage Pass-Throughs — 27.8%
Federal Home Loan Mortgage Corp.	6.00%	TBA		4,000		4,132,500
Federal Home Loan Mortgage Corp.	6.50%	06/01/08-09/01/32		3,631		3,837,123
Federal Home Loan Mortgage Corp.	7.00%	06/01/08-10/01/32		5,692		6,049,540
Federal National Mortgage Association	5.00%	TBA		31,500		31,953,450
Federal National Mortgage Association	5.50%	01/01/17-11/01/18		3,516		3,647,633
Federal National Mortgage Association	5.50%	TBA		10,000		10,151,246
Federal National Mortgage Association	6.00%	11/01/14		2,039		2,143,139
Federal National Mortgage Association	6.30%	03/01/11		2,606		2,849,154
Federal National Mortgage Association	6.50%	07/01/08-10/01/32		15,338		16,113,569
Federal National Mortgage Association	7.00%	02/01/12-11/01/33		12,376		13,117,468
Federal National Mortgage Association	7.00%	TBA		7,000		7,411,250
Federal National Mortgage Association	7.50%	12/01/05-10/01/12		1,852		1,968,875
Federal National Mortgage Association	8.00%	03/01/22-05/01/26		153		167,187
Federal National Mortgage Association	9.00%	02/01/25-04/01/25		708		788,925
Government National Mortgage Association	5.00%	TBA		11,000		10,896,875
Government National Mortgage Association	6.50%	07/15/32-08/15/32		2,570		2,709,446
Government National Mortgage Association	7.00%	03/15/23-08/15/28		6,700		7,180,658
Government National Mortgage Association	7.50%	12/15/25-02/15/26		1,660		1,787,217
Government National Mortgage Association	8.50%	09/15/24-04/15/25		1,518		1,671,231

						128,576,486

Municipal Bond — 0.7%
New Jersey Economic Development Authority, State Pension Funding, Series B (cost $3,071,033)	Zero	02/15/12		4,609		3,122,966

U.S. Government & Agency Obligations — 57.3%
Federal Farm Credit Bank	5.90%	01/10/05		5,000		5,229,640
Federal Home Loan Bank	4.75%	08/13/10		10,755		11,139,502
Federal Home Loan Bank(d)	6.241%	02/20/07		2,000		2,127,180
Federal Home Loan Mortgage Corp.	4.375%	02/04/10		5,750		5,746,446
Federal Home Loan Mortgage Corp.	4.50%	01/15/13		5,045		5,019,518

SEE NOTES TO FINANCIAL STATEMENTS.

B42




		*GOVERNMENT INCOME PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS (Continued)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
U.S. Government & Agency Obligations (cont’d.)
Federal Home Loan Mortgage Corp.	4.75%	12/08/10	$	6,507	$	6,576,228
Federal Home Loan Mortgage Corp.	5.25%	11/05/12		6,250		6,304,519
Federal National Mortgage Association(b)	Zero	02/15/06		15,364		14,654,690
Federal National Mortgage Association	4.00%	09/02/08		6,750		6,835,766
Federal National Mortgage Association	4.375%	07/17/13		14,310		13,698,920
Federal National Mortgage Association	5.25%	01/15/09		10,000		10,762,420
Federal National Mortgage Association	5.50%	07/18/12		12,000		12,290,700
Small Business Administration Participation Certificates, Series 1988-J20	6.00%	09/01/18		5,237		5,612,374
Small Business Administration Participation Certificates, Series 1996-J20	7.20%	10/01/16		9,696		10,705,288
Small Business Administration Participation Certificates, Series 1997-A20	7.15%	01/01/17		10,139		11,192,367
Small Business Administration Participation Certificates, Series 1997-G20	6.85%	07/01/17		2,807		3,082,291
United States Treasury Bonds	5.25%	11/15/28		4,200		4,230,353
United States Treasury Bonds(a)	5.375%	02/15/31		7,000		7,299,964
United States Treasury Bonds	5.50%	08/15/28		27,100		28,227,414
United States Treasury Notes	1.625%	03/31/05		1,450		1,454,985
United States Treasury Notes(a)	1.875%	07/15/13		7,051		7,000,486
United States Treasury Notes(a)	3.375%	11/15/08		38,000		38,301,340
United States Treasury Notes(a)	4.25%	08/15/13-11/15/13		42,000		41,986,869
United States Treasury Strips, P/O	Zero	05/15/17		9,600		4,870,099

						264,349,359

TOTAL LONG-TERM INVESTMENTS (cost $447,432,780)						456,249,958



SHORT-TERM INVESTMENT — 33.9%	Shares
Mutual Fund
Dryden Core Investment Fund —Taxable Money Market Series(e) (cost $156,545,052; Note 4)	156,545,052		156,545,052

TOTAL INVESTMENTS — 132.8% (cost $603,977,832; Note 6)			612,795,010
VARIATION MARGIN ON OPEN FUTURES CONTRACTS(f)			(159,702	)
LIABILITIES IN EXCESS OF OTHER ASSETS — (32.8)%			(151,118,906	)

TOTAL NET ASSETS — 100.0%		$	461,516,402

SEE NOTES TO FINANCIAL STATEMENTS.

B43




		*GOVERNMENT INCOME PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

SEE NOTES TO FINANCIAL STATEMENTS.

The following abbreviation is used in portfolio descriptions:


P/O		Principal Only
TBA		Securities purchased on a forward commitment basis

(a)	Portion of securities on loan with an aggregate market value of $91,572,964; cash collateral of $94,616,694 was received with which the portfolio purchased securities.

(b)	Security segregated as collateral for futures contracts.

(c)	US$ denominated foreign bonds.

(d)	Indicates a variable rate security. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(e)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(f)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
280	Eurodollar Futures	Sep 04	$	68,754,812	$	68,771,500	$	16,688
247	U.S. Treasury Bonds	Mar 04		26,823,322		27,000,188		176,866
428	Swap 10Yr Futures	Mar 04		46,987,531		46,959,625		(27,906	)

								165,648
Short Positions:
280	Eurodollar Futures	Sep 05		67,654,188		67,651,500		2,688
1,304	U.S. Treasury 10Yr Notes	Mar 04		145,272,105		146,394,375		(1,122,270	)
371	U.S. Treasury 5Yr Notes	Mar 04		41,358,258		41,412,875		(54,617	)

								(1,174,199	)

							$	(1,008,551	)

B44




		*HIGH YIELD BOND PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.3% CORPORATE BONDS — 89.9%	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Aerospace/Defense — 1.6%
Dunlop Standard Aerospace Holdings PLC, Sr. Notes (United Kingdom)	B3	11.875%	05/15/09	$	2,700	$	2,889,000
Esterline Technologies Corp., Sr. Sub. Notes	B1	7.75%	06/15/13		4,500		4,837,500
K&F Industries, Inc., Sr. Sub. Notes	B3	9.625%	12/15/10		2,165		2,427,506
K&F Industries, Inc., Sr. Sub. Notes, Ser. B	B3	9.25%	10/15/07		3,841		3,961,031
L-3 Communications Corp., Sr. Sub. Notes	Ba3	6.125%	01/15/14		925		927,313
L-3 Communications Corp., Sr. Sub. Notes	Ba3	7.625%	06/15/12		4,750		5,147,812
Sequa Corp., Sr. Notes	B1	8.875%	04/01/08		2,000		2,170,000
TransDigm, Inc.	B3	8.375%	07/15/11		1,500		1,595,625

							23,955,787

Asset Backed Security — 0.1%
Inner Harbor CBO, Sub. Bond, Ser. 2001-1A, Class B2 (Cayman Islands)	Ba2	11.19%	06/15/13		2,000		1,522,188

Building & Construction — 2.2%
American Standard, Inc., Gtd. Notes	Ba2	7.375%	04/15/05		3,000		3,165,000
Beazer Homes USA, Inc., Sr. Notes	Ba2	8.625%	05/15/11		1,820		2,002,000
D.R. Horton, Inc., Gtd. Notes(b)	Ba1	8.00%	02/01/09		3,000		3,390,000
D.R. Horton, Inc., Sr. Notes(b)	Ba1	8.50%	04/15/12		3,250		3,672,500
KB HOME, Sr. Sub. Notes	Ba2	8.625%	12/15/08		2,800		3,136,000
New Millenium Homes LLC, Sr. Notes(e)	NR	11.75%	12/31/07		2,781		1,390,500
Nortek Holdings, Inc., Sr. Notes, Zero Coupon (until 11/15/07)	Caa1	10.00%	05/15/11		3,500		2,528,750
Nortek, Inc., Sr. Sub. Notes, Ser. B	B3	9.875%	06/15/11		4,330		4,773,825
Toll Corp., Sr. Sub. Notes(b)	Ba2	8.25%	02/01/11		4,150		4,565,000
WCI Communities, Inc., Gtd. Notes	Ba3	9.125%	05/01/12		4,000		4,400,000

							33,023,575

Cable — 5.3%
Avalon Cable Holdings, Sr. Disc. Notes	Caa1	11.875%	12/01/08		3,151		3,324,358
Callahan Nordrhein-Westfalen, Sr. Disc. Notes, Zero Coupon (until 07/15/05) (Germany)(c)	B-	16.00%	07/15/10		7,000		280,000
Charter Communications Holdings, Sr. Disc. Notes, Zero Coupon (until 05/15/06)	Ca	11.75%	05/15/11		3,150		2,110,500
Charter Communications Holdings, Sr. Notes(b)	Ca	8.625%	04/01/09		12,325		10,753,562
Charter Communications Holdings, Sr. Notes(b)	Ca	9.625%	11/15/09		3,150		2,772,000
Charter Communications Holdings, Sr. Notes	Ca	10.00%	04/01/09		1,000		890,000
Charter Communications Holdings, Sr. Notes	Ca	10.00%	05/15/11		9,975		8,678,250
Charter Communications Holdings, Sr. Notes	Ca	10.25%	01/15/10		2,235		2,000,325
Charter Communications Holdings, Sr. Notes(b)	Caa1	10.25%	09/15/10		1,400		1,470,000
Charter Communications Holdings, Sr. Notes	Ca	10.75%	10/01/09		1,700		1,559,750
Charter Communications Holdings, Sr. Notes(b)	Ca	11.125%	01/15/11		3,075		2,821,313
CSC Holdings, Inc., Sr. Debs	B1	7.625%	07/15/18		1,275		1,338,750
CSC Holdings, Inc., Sr. Sub. Debs.(b)	B2	10.50%	05/15/16		970		1,110,650
DirecTV Holdings, Sr. Notes	B1	8.375%	03/15/13		4,605		5,341,800
Echostar DBS Corp., Sr. Notes	Ba3	9.125%	01/15/09		5,174		5,788,412
Echostar DBS Corp., Sr. Notes	Ba3	10.375%	10/01/07		16,300		17,868,875
NTL, Inc., Debs	Caa2	11.20%	11/15/07		6,300		6,363,000
Telewest PLC, Debs. (United Kingdom)(b)(c)	Ca	11.00%	10/01/07		4,450		2,892,500

							77,364,045

Chemicals — 4.0%
Avecia Group PLC, Gtd. Notes (United Kingdom)(b)	Caa1	11.00%	07/01/09		6,125		5,512,500
Equistar Chemicals LP, Gtd. Note	B2	10.125%	09/01/08		830		908,850
Equistar Chemicals LP, Sr. Notes	B2	10.625%	05/01/11		5,480		6,055,400
Huntsman Advanced Materials LLC, Sr. Sec’d. Notes(b)	B2	11.00%	07/15/10		2,500		2,762,500
Huntsman ICI Chemical, Sr. Sub. Notes	Caa1	10.125%	07/01/09		5,075		5,227,250
Huntsman LLC, Sr. Sec’d. Notes	B2	11.625%	10/15/10		3,600		3,672,000
IMC Global, Inc., Gtd. Notes, Ser. B	B1	10.875%	06/01/08		1,000		1,100,000

SEE NOTES TO FINANCIAL STATEMENTS.

B45




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Chemicals (cont’d.)
IMC Global, Inc., Gtd. Notes, Ser. B(b)	B1	11.25%	06/01/11	$	5,785	$	6,363,500
ISP Chemco, Inc., Gtd. Notes, Ser. B	B2	10.25%	07/01/11		2,485		2,795,625
Koppers, Inc., Sr. Sec’d. Notes	B2	9.875%	10/15/13		1,000		1,102,500
Lyondell Chemical Co., Sec’d. Notes	B1	10.50%	06/01/13		715		779,350
Nalco Co., Sr. Sub. Notes	Caa1	8.875%	11/15/13		2,650		2,809,000
OM Group, Inc., Sr. Sub. Notes(b)	Caa1	9.25%	12/15/11		12,500		13,000,000
Rhodia SA, Sr. Sub. Notes (France)(b)	B3	8.875%	06/01/11		2,410		2,217,200
Rockwood Specialties, Inc., Sr. Sub. Notes(b)	B3	10.625%	05/15/11		2,175		2,425,125
Westlake Chemical Corp., Gtd. Notes	Ba3	8.75%	07/15/11		2,300		2,518,500

							59,249,300

Consumer Products & Services — 0.8%
Coinmach Corp., Sr. Notes	B2	9.00%	02/01/10		4,510		4,893,350
DIMON, Inc., Gtd. Notes, Ser. B	Ba3	9.625%	10/15/11		850		947,750
Goodyear Tire & Rubber Co., Notes(b)	B2	7.857%	08/15/11		1,500		1,308,750
Rayovac Corp., Sr. Sub. Notes	B3	8.50%	10/01/13		4,050		4,293,000

							11,442,850

Containers — 3.3%
Anchor Glass Container Corp., Sr. Sec’d. Notes	B2	11.00%	02/15/13		2,975		3,451,000
Berry Plastics Corp., Gtd. Notes	B3	10.75%	07/15/12		2,920		3,361,650
Berry Plastics Corp., Gtd. Notes(b)	B3	10.75%	07/15/12		1,525		1,755,656
BWAY Corp., Sr. Sub. Notes	B3	10.00%	10/15/10		960		1,046,400
Crown European Holdings SA, Sr. Sec’d. Notes (France)(b)	B1	9.50%	03/01/11		3,750		4,246,875
Graham Packaging, Sr. Disc. Notes, Ser. B, Zero Coupon (until 01/15/03)	Caa2	10.75%	01/15/09		10,600		10,944,500
Graphic Packaging International, Inc., Sr. Sub. Notes	B3	9.50%	08/15/13		3,075		3,397,875
Greif Brothers Corp., Sr. Sub. Notes	B2	8.875%	08/01/12		5,250		5,775,000
Norampac, Inc.	Ba2	6.75%	06/01/13		2,500		2,606,250
Owens-Brockway, Sr. Sec’d. Notes	B1	7.75%	05/15/11		6,650		7,140,438
Owens-Brockway, Sr. Sec’d. Notes	B1	8.75%	11/15/12		1,255		1,397,756
Silgan Holdings, Inc., Sr. Sub. Notes(b)	B1	6.75%	11/15/13		1,750		1,754,375
Tekni-Plex, Inc., Sr. Sec’d. Notes(b)	B2	8.75%	11/15/13		1,200		1,251,000

							48,128,775

Energy — 9.0%
Allegheny Energy Supply Co., LLC, Notes(b)	B3	8.75%	04/15/12		4,525		4,264,812
AmeriGas Partners LP, Sr. Notes, Ser. C	B2	8.875%	05/20/11		2,950		3,245,000
Chesapeake Energy Corp., Sr. Notes	Ba3	8.125%	04/01/11		3,000		3,330,000
El Paso Corp., Sr. Notes(b)	Caa1	7.00%	05/15/11		4,330		3,994,425
El Paso Energy Partners LP, Sr. Sub. Notes, Ser. B	B1	8.50%	06/01/11		335		376,875
El Paso Production Holdings LP, Sr. Notes(b)	B2	7.75%	06/01/13		9,125		8,988,125
Eott Energy Partners LP, Sr. Notes(c)(e)	Caa2	11.00%	10/01/09		740		1
Ferrellgas Partners LP, Sr. Notes	B2	8.75%	06/15/12		1,400		1,540,000
Forest Oil Corp., Sr. Notes	Ba3	8.00%	06/15/08		1,250		1,362,500
Forest Oil Corp., Sr. Notes	Ba3	8.00%	12/15/11		3,400		3,714,500
Gazprom OAO, Notes (cost $5,637,736; purchased 02/21/03)(Russia)(b)(f)	BB-(g)	9.625%	03/01/13		5,550		6,118,875
Gemstone Investors, Ltd., Gtd. Sr. Notes	Caa1	7.71%	10/31/04		2,480		2,504,800
GulfTerra Energy Partners LP, Gtd. Notes	B1	10.625%	12/01/12		486		602,640
GulfTerra Energy Partners LP, Sr. Sub. Notes	Ba3	6.25%	06/01/10		2,675		2,782,000
Hanover Compressor Co., Sr. Notes	B3	8.625%	12/15/10		2,125		2,210,000
Hanover Equipment Trust, Sec’d. Notes(b)	B2	8.50%	09/01/08		2,110		2,236,600
Hanover Equipment Trust, Sec’d. Notes(b)	B2	8.75%	09/01/11		2,170		2,300,200
Houston Exploration Co., Sr. Sub. Notes	B1	7.00%	06/15/13		1,375		1,419,688
Leviathan Gas Pipeline, Sr. Gtd. Sub. Notes, Ser. B	B1	10.375%	06/01/09		2,000		2,170,000
Magnum Hunter Resources, Sr. Notes	B2	9.60%	03/15/12		2,225		2,525,375
Newfield Exploration Co., Sr. Sub. Notes(b)	Ba3	8.375%	08/15/12		6,235		6,983,200
Paramount Resources, Ltd., Sr. Notes (Canada)	B2	7.875%	11/01/10		3,400		3,383,000

SEE NOTES TO FINANCIAL STATEMENTS.

B46




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Energy (cont’d.)
Parker and Parsley, Sr. Notes	Ba1	8.875%	04/15/05	$	1,000	$	1,070,249
Pioneer Natural Resources Co., Gtd. Notes	Ba1	7.50%	04/15/12		5,000		5,746,680
Plains All American Pipeline LP, Sr. Notes	Ba1	7.75%	10/15/12		4,620		5,330,325
Premcor Refining Group, Inc., Sr. Notes	Ba3	7.50%	06/15/15		675		691,875
Premcor Refining Group, Inc., Sr. Notes	Ba3	9.50%	02/01/13		3,055		3,482,700
Premcor Refining Group, Inc., Sr. Sub. Notes(b)	B2	7.75%	02/01/12		1,925		1,982,750
Semco Energy, Inc., Sr. Notes	Ba2	7.125%	05/15/08		1,800		1,874,250
Southern Energy, Sr. Notes(b)(c)	D	7.40%	07/15/04		1,825		1,177,125
Southern Natural Gas Co., Sr. Notes(b)	B1	8.875%	03/15/10		2,900		3,262,500
Stone Energy Corp., Sr. Sub. Notes	B2	8.25%	12/15/11		7,000		7,630,000
Tennessee Gas Pipeline Co., Debs.	B1	7.00%	03/15/27		3,530		3,662,375
Tennessee Gas Pipeline Co., Debs.	B1	7.00%	10/15/28		2,125		2,018,750
Tennessee Gas Pipeline Co., Debs.	B1	7.625%	04/01/37		4,615		4,545,775
TransMontaigne, Inc., Sr. Sub. Notes	B3	9.125%	06/01/10		2,325		2,493,562
Vintage Petroleum, Inc., Sr. Sub. Notes	B1	9.75%	06/30/09		3,582		3,770,055
Williams Cos., Inc., Notes(b)	B3	7.125%	09/01/11		4,475		4,732,312
Williams Cos., Inc., Notes(b)	B3	8.125%	03/15/12		5,045		5,599,950
Williams Cos., Inc., Notes	B3	9.25%	03/15/04		3,130		3,169,125
Williams Cos., Inc., Sr. Notes	B3	8.625%	06/01/10		3,275		3,676,188

							131,969,162

Food & Beverage — 1.9%
Agrilink Foods, Inc., Sr. Gtd. Notes	B3	11.875%	11/01/08		465		494,063
Carrols Corp., Sr. Gtd. Notes	B3	9.50%	12/01/08		2,885		2,928,275
Del Monte Corp., Sr. Sub. Notes	B2	8.625%	12/15/12		2,700		2,956,500
Dole Food Co., Inc., Sr. Notes	B2	7.25%	06/15/10		1,875		1,931,250
Dole Food Co., Inc., Sr. Notes	B2	8.625%	05/01/09		2,400		2,634,000
Dole Food Co., Inc., Sr. Notes	B2	8.875%	03/15/11		1,995		2,189,512
Homeland Stores, Inc., Sr. Notes(c)(e)	NR	10.00%	08/01/49		4,260		170,400
Merisant Co., Gtd. Notes	B3	9.50%	07/15/13		1,125		1,198,125
National Beef Packing Co., LLC, Sr. Notes(b)	B2	10.50%	08/01/11		2,000		2,060,000
National Restaurant Enterprises Holdings, Inc., Sr. Notes(c)	NR	10.75%	11/15/07		269		3
National Restaurant Enterprises Holdings, Inc., Sr. Notes(c)	NR	13.00%	05/15/08		286		3
Smithfield Foods, Inc., Notes	Ba2	7.75%	05/15/13		900		936,000
Smithfield Foods, Inc., Sr. Notes(b)	Ba2	8.00%	10/15/09		2,440		2,574,200
Tricon Global Restaurants, Inc., Sr. Notes	Ba1	7.45%	05/15/05		1,000		1,066,250
Tricon Global Restaurants, Inc., Sr. Notes	Ba1	8.875%	04/15/11		5,000		6,062,500

							27,201,081

Gaming — 5.3%
Argosy Gaming Co., Sr. Sub. Notes	B2	9.00%	09/01/11		810		897,075
Aztar Corp., Sr. Sub. Notes	Ba3	8.875%	05/15/07		1,250		1,304,687
Boyd Gaming Corp., Sr. Sub. Notes	B1	8.75%	04/15/12		1,500		1,646,250
Circus Enterprises, Inc., Sr. Notes	Ba2	6.45%	02/01/06		1,220		1,271,850
Coast Hotels & Casinos, Inc., Sr. Sub. Notes	B2	9.50%	04/01/09		2,000		2,115,000
Gaylord Entertainment Co., Sr. Notes	B3	8.00%	11/15/13		2,595		2,737,725
Isle of Capri Casinos, Inc., Sr. Sub. Notes(b)	B2	9.00%	03/15/12		1,430		1,590,875
Mandalay Resort Group, Sr. Notes(b)	Ba2	9.50%	08/01/08		2,250		2,626,875
MGM Grand, Inc., Gtd. Notes	Ba2	9.75%	06/01/07		9,051		10,318,140
MGM Mirage, Inc., Gtd. Notes	Ba1	6.00%	10/01/09		4,750		4,880,625
Mohegan Tribal Gaming Authority, Sr. Sub. Notes	Ba3	6.375%	07/15/09		2,585		2,669,012
Mohegan Tribal Gaming Authority, Sr. Sub. Notes	Ba3	8.00%	04/01/12		1,695		1,834,838
Park Place Entertainment Corp., Sr. Notes(b)	Ba1	7.50%	09/01/09		5,700		6,270,000
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	7.875%	12/15/05		3,500		3,749,375
Park Place Entertainment Corp., Sr. Sub. Notes(b)	Ba2	8.125%	05/15/11		1,530		1,715,512
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	9.375%	02/15/07		355		402,038
Station Casinos, Inc., Sr. Sub. Notes(b)	B2	9.875%	07/01/10		8,075		8,882,500
Sun International Hotels, Ltd., Sr. Sub. Notes (Bahamas)	B2	8.875%	08/15/11		5,980		6,533,150

SEE NOTES TO FINANCIAL STATEMENTS.

B47




		*HIGH YIELD BOND PORTFOLIO (Continued*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Gaming (cont’d.)
Venetian Casino Resort LLC, Second Mtge. Notes	B3	11.00%	06/15/10	$	8,460	$	9,813,600
Wynn Las Vegas LLC, Second Mtge. Notes(b)	B3	12.00%	11/01/10		5,050		5,946,375

							77,205,502

Healthcare — 6.8%
Alliance Imaging, Inc., Sr. Sub. Notes(b)	B3	10.375%	04/15/11		6,575		6,969,500
Bio-Rad Laboratories, Inc., Sr. Sub. Notes	Ba3	7.50%	08/15/13		1,700		1,870,000
Columbia/HCA Healthcare Corp., Debs.	Ba1	7.50%	12/15/23		600		623,395
Columbia/HCA Healthcare Corp., M.T.N.	Ba1	8.70%	02/10/10		3,000		3,550,830
Columbia/HCA Healthcare Corp., M.T.N.	Ba1	8.85%	01/01/07		259		292,842
Columbia/HCA Healthcare Corp., Notes	Ba1	9.00%	12/15/14		4,000		4,840,832
Columbia/HCA Healthcare Corp., Sr. Notes	Ba1	7.69%	06/15/25		1,500		1,582,964
Columbia/HCA Healthcare Corp., Sr. Notes	Ba1	8.36%	04/15/24		2,000		2,247,172
Concentra Operating Corp., Sr. Gtd. Sub. Notes	B3	13.00%	08/15/09		2,317		2,583,455
Coventry Health Care, Inc ., Sr. Notes	Ba3	8.125%	02/15/12		2,800		3,108,000
HCA, Inc., Debs.	Ba1	7.50%	11/15/95		665		636,900
HCA, Inc., Notes	Ba1	7.125%	06/01/06		3,830		4,149,545
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	6.875%	06/15/05		1,900		1,819,250
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	7.375%	10/01/06		750		714,375
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	8.50%	02/01/08		2,000		1,920,000
Magellan Health Services, Inc., Sr. Notes	D	9.375%	11/15/07		5,270		5,533,500
Mariner Health Care, Inc., Sr. Sub. Notes(b)	B3	8.25%	12/15/13		3,400		3,434,000
Medco Health Solutions, Inc., Sr. Notes(b)	Ba1	7.25%	08/15/13		1,475		1,609,151
MedQuest, Inc., Sr. Sub. Notes	B3	11.875%	08/15/12		4,050		4,424,625
NeighborCare, Inc., Sr. Sub. Notes	Ba3	6.875%	11/15/13		2,000		2,035,000
Quintiles Transnational Corp., Sr. Sub. Notes	B3	10.00%	10/01/13		4,625		4,995,000
Res-Care, Inc., Sr. Notes	B2	10.625%	11/15/08		2,400		2,484,000
Select Medical Corp., Sr. Sub. Notes	B2	7.50%	08/01/13		1,705		1,807,300
Select Medical Corp., Sr. Sub. Notes(b)	B2	9.50%	06/15/09		2,415		2,650,463
Senior Housing Properties Trust, Sr. Notes	Ba2	8.625%	01/15/12		4,000		4,360,000
Service Corp. International, Debs.(b)	B1	7.875%	02/01/13		2,000		2,035,000
Service Corp. International, Notes	B1	6.00%	12/15/05		473		482,460
Service Corp. International, Notes	B1	6.50%	03/15/08		2,000		2,055,000
Tenet Healthcare Corp., Sr. Notes	B1	5.375%	11/15/06		2,000		1,970,000
Tenet Healthcare Corp., Sr. Notes(b)	B1	6.375%	12/01/11		810		777,600
Tenet Healthcare Corp., Sr. Notes	B1	6.50%	06/01/12		7,100		6,807,125
Triad Hospitals Holding, Sr. Notes, Ser. B	B1	8.75%	05/01/09		1,800		1,950,750
Triad Hospitals, Inc.(b)	B3	7.00%	11/15/13		2,600		2,619,500
Valeant Pharmaceuticals International, Sr. Notes	B1	7.00%	12/15/11		3,025		3,115,750
Ventas Realty LP, Sr. Notes(b)	Ba3	8.75%	05/01/09		2,000		2,195,000
Ventas Realty LP, Sr. Notes	Ba3	9.00%	05/01/12		4,348		4,826,280

							99,076,564

Industrials — 5.4%
Alliant Techsystems, Inc., Sr. Sub. Notes	B2	8.50%	05/15/11		2,750		3,025,000
Allied Waste of North America, Inc., Sr. Notes(b)	Ba3	6.50%	11/15/10		555		568,875
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.625%	01/01/06		1,250		1,315,625
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.875%	01/01/09		4,560		4,753,800
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.875%	04/15/13		675		730,687
Allied Waste of North America, Inc., Sr. Notes(b)	Ba3	8.50%	12/01/08		8,200		9,122,500
Allied Waste of North America, Inc., Sr. Notes(b)	B2	10.00%	08/01/09		3,810		4,114,800
American Color Graphics, Inc., Notes	B3	10.00%	06/15/10		2,000		2,050,000
AMSTED Industries, Inc., Sr. Notes	B3	10.25%	10/15/11		2,550		2,817,750
Browning-Ferris Industries, Inc., Deb. Notes	Ba3	7.40%	09/15/35		2,000		1,895,000
Case New Holland, Inc., Sr. Notes(b)	Ba3	9.25%	08/01/11		3,425		3,836,000
International Wire Group, Inc., Sr. Sub. Notes(c)	Ca	11.75%	06/01/05		680		418,200
International Wire Group, Inc., Sr. Sub. Notes, Ser. B(c)	Ca	11.75%	06/01/05		160		98,400
Iron Mountain, Inc., Gtd. Notes	B2	8.625%	04/01/13		3,875		4,185,000

SEE NOTES TO FINANCIAL STATEMENTS.

B48




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Industrials (cont’d.)
Johnsondiversey Holdings, Inc., Sr. Disc. Notes, Zero Coupon (until 05/15/07)	B3	10.67%	05/15/13	$	2,905	$	2,222,325
Joy Global, Inc., Gtd. Notes, Ser. B(b)	B2	8.75%	03/15/12		4,725		5,268,375
Manitowoc Co., Inc., Sr. Sub. Notes(b)	B2	10.50%	08/01/12		4,150		4,725,813
Motors & Gears, Inc., Sr. Notes	Caa1	10.75%	11/15/06		4,000		3,400,000
Rexnord Corp., Gtd. Notes	B3	10.125%	12/15/12		3,575		3,914,625
SPX Corp., Sr. Notes	Ba3	6.25%	06/15/11		1,250		1,284,375
Terex Corp., Sr. Sub. Notes	B3	7.375%	01/15/14		650		664,625
Terex Corp., Sr. Sub. Notes	B3	9.25%	07/15/11		2,825		3,107,500
Terex Corp., Sr. Sub. Notes(b)	B3	10.375%	04/01/11		3,445		3,858,400
Thermadyne Holdings Corp., Deb. Notes, Zero Coupon (until 06/01/03)(c)	C	12.50%	06/01/08		2,375		24
Tyco International Group SA, Notes	Ba2	6.125%	11/01/08		50		53,500
Tyco International Group SA, Notes(b)	Ba2	6.375%	10/15/11		3,475		3,713,906
Tyco International Group SA, Notes (Luxembourg)	Ba2	6.75%	02/15/11		1,600		1,748,000
United Rentals, Inc., Gtd. Notes, Ser. B(b)	B2	9.25%	01/15/09		1,250		1,312,500
United Rentals, Inc., Gtd. Notes, Ser. B	B1	10.75%	04/15/08		1,000		1,125,000
United Rentals, Inc., Sr. Sub. Notes(b)	B2	7.75%	11/15/13		3,150		3,216,937

							78,547,542

Lodging & Leisure — 6.1%
Extended Stay America, Inc., Sr. Sub. Notes(b)	B2	9.875%	06/15/11		3,110		3,483,200
Felcor Lodging LP, Gtd. Notes(b)	B1	9.00%	06/01/11		4,900		5,316,500
Felcor Lodging LP, Gtd. Notes(b)	B1	10.00%	09/15/08		6,170		6,663,600
Felcor Suites LP, Gtd. Notes(b)	B1	7.625%	10/01/07		950		978,500
Hilton Hotels Corp., Notes(b)	Ba1	7.625%	12/01/12		1,550		1,741,812
Hilton Hotels Corp., Sr. Notes	Ba1	7.50%	12/15/17		285		302,813
HMH Properties, Inc., Sr. Gtd. Notes, Ser. B	Ba3	7.875%	08/01/08		5,570		5,792,800
HMH Properties, Inc., Sr. Gtd. Notes, Ser. C	Ba3	8.45%	12/01/08		273		284,603
Host Marriott LP, Sr. Notes(b)	Ba3	7.125%	11/01/13		1,600		1,632,000
Host Marriott LP, Sr. Notes(b)	Ba3	9.50%	01/15/07		6,815		7,581,687
Host Marriott LP, Sr. Notes, Ser. E	Ba3	8.375%	02/15/06		5,175		5,517,844
Intrawest Corp., Sr. Notes	B1	10.50%	02/01/10		6,720		7,425,600
ITT Corp., Debs(b)	Ba1	6.75%	11/15/05		3,030		3,181,500
ITT Corp., Sr. Sub. Notes, Ser. B	Ba1	7.375%	11/15/15		1,250		1,337,500
La Quinta Inns, Inc., Sr. Notes	Ba3	7.40%	09/15/05		1,000		1,042,500
La Quinta Properties, Inc.	Ba3	8.875%	03/15/11		3,725		4,120,781
Regal Cinemas, Inc., Sr. Sub. Notes, Ser. B(b)	B2	9.375%	02/01/12		5,000		5,650,000
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)	Ba2	6.875%	12/01/13		3,125		3,148,437
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)(b)	Ba2	8.125%	07/28/04		1,185		1,223,513
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)(b)	Ba2	8.75%	02/02/11		1,150		1,299,500
Six Flags, Inc., Sr. Notes(b)	B2	9.50%	02/01/09		1,250		1,309,375
Six Flags, Inc., Sr. Notes	B2	9.625%	06/01/14		2,775		2,899,875
Six Flags, Inc., Sr. Notes(b)	B2	9.75%	06/15/07		4,525		4,745,594
Starwood Hotels & Resorts Worldwide, Inc., Notes	Ba1	7.375%	05/01/07		5,900		6,372,000
Starwood Hotels & Resorts Worldwide, Inc., Notes(b)	Ba1	7.875%	05/01/12		2,235		2,514,375
Vail Resorts, Inc., Gtd. Notes	B2	8.75%	05/15/09		3,500		3,692,500

							89,258,409

Media — 5.5%
Alliance Atlantis, Sr. Sub. Notes (Canada)	B1	13.00%	12/15/09		3,520		4,012,800
American Media Operations, Inc., Gtd. Notes, Ser. B	B2	10.25%	05/01/09		760		810,350
CanWest Media, Inc., Sr. Notes (Canada)	B1	7.625%	04/15/13		1,500		1,642,500
CanWest Media, Inc., Sr. Sub. Notes (Canada)	B2	10.625%	05/15/11		3,000		3,427,500
Dex Media East LLC, Sr. Sub. Notes(b)	B3(g)	12.125%	11/15/12		3,625		4,458,750
Dex Media West LLC, Sr. Sub. Notes(b)	B3	9.875%	08/15/13		10,225		11,886,562
Dex Media, Inc., Notes(b)	Caa1	8.00%	11/15/13		2,825		2,966,250
Entercom Radio LLC, Gtd. Notes	Ba3	7.625%	03/01/14		1,605		1,723,369
Granite Broadcasting Corp., Sec’d. Notes	B3	9.75%	12/01/10		3,500		3,491,250

SEE NOTES TO FINANCIAL STATEMENTS.

B49




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Media (cont’d.)
Gray Television, Inc., Sr. Sub. Notes	B2	9.25%	12/15/11	$	4,325	$	4,822,375
Moore NA Finance, Inc., Sr. Notes	B1	7.875%	01/15/11		2,300		2,604,750
Morris Publishing Group LLC, Sr. Sub. Notes	Ba3	7.00%	08/01/13		1,300		1,319,500
Phoenix Color Corp., Sr. Sub. Notes	Caa2	10.375%	02/01/09		4,000		3,565,000
PRIMEDIA, Inc., Sr. Notes	B3	8.875%	05/15/11		2,000		2,110,000
Quebecor Media, Inc., Sr. Disc. Notes, Zero Coupon (until 07/15/06) (Canada)	B2	13.75%	07/15/11		3,125		2,753,906
Quebecor Media, Inc., Sr. Notes (Canada)	B2	11.125%	07/15/11		2,900		3,356,750
R.H. Donnelley Finance Corp., Sr. Sub. Notes(b)	B2	10.875%	12/15/12		3,025		3,588,406
Sinclair Broadcast Group, Inc., Gtd. Notes	B2	8.00%	03/15/12		4,600		4,968,000
Sinclair Broadcast Group, Inc., Gtd. Notes(b)	B2	8.75%	12/15/11		2,500		2,775,000
Susquehanna Media Co., Sr. Sub. Notes	B1	7.375%	04/15/13		900		938,250
Vertis, Inc., Gtd. Notes, Ser. B	B3	10.875%	06/15/09		1,700		1,806,250
Vertis, Inc., Sec’d. Notes	B2	9.75%	04/01/09		4,500		4,888,125
Videotron LTEE, Sr. Notes (Canada)(b)	Ba3	6.875%	01/15/14		3,950		4,078,375
Vivendi Universal SA, Sr. Notes (France)	B1	6.25%	07/15/08		2,950		3,123,313

							81,117,331

Metals & Mining — 1.8%
AK Steel Corp., Notes(b)	B3	7.75%	06/15/12		6,970		5,959,350
AK Steel Corp., Sr. Notes	B3	7.875%	02/15/09		2,360		2,070,900
Arch Western Finance LLC, Sr. Notes	Ba2	6.75%	07/01/13		1,335		1,371,712
Armco, Inc., Sr. Notes	B3	9.00%	09/15/07		800		710,000
Century Aluminum Co., First Mtge. Notes	B1	11.75%	04/15/08		3,050		3,400,750
CSN Islands VII Corp., Gtd. Notes (Cayman Islands)	B1	10.75%	09/12/08		3,445		3,798,112
Euramax International, Inc., Sr. Sub. Notes	B2	8.50%	08/15/11		875		934,063
Massey Energy Co., Sr. Notes(b)	Ba3	6.625%	11/15/10		2,700		2,767,500
Sheffield Steel Corp., Sr. Sec’d. Notes	NR	10.00%	04/30/07		962		577,188
Steel Dynamics, Inc., Sr. Notes	B1	9.50%	03/15/09		2,400		2,664,000
UCAR Finance, Inc., Gtd. Notes	B3	10.25%	02/15/12		1,570		1,805,500

							26,059,075

Paper & Forest Products — 2.5%
Boise Cascade Corp., Sr. Notes(b)	Ba2	6.50%	11/01/10		2,400		2,503,582
Cascades, Inc., Sr. Notes (Canada)	Ba1	7.25%	02/15/13		6,385		6,736,175
Georgia-Pacific Corp., Debs.	Ba3	7.70%	06/15/15		1,000		1,040,000
Georgia-Pacific Corp., Debs.	Ba3	7.75%	11/15/29		200		199,500
Georgia-Pacific Corp., Debs.	Ba3	8.625%	04/30/25		2,300		2,380,500
Georgia-Pacific Corp., Notes	Ba3	8.875%	05/15/31		2,960		3,256,000
Georgia-Pacific Corp., Sr. Notes	Ba3	8.125%	05/15/11		270		297,000
Georgia-Pacific Corp., Sr. Notes(b)	Ba2	9.375%	02/01/13		6,235		7,170,250
Louisiana-Pacific Corp., Sr. Notes	Ba1	8.50%	08/15/05		500		540,000
Millar Western Forest Products, Ltd., Sr. Notes	B3	7.75%	11/15/13		3,200		3,320,000
Smurfit-Stone Container Corp., Sr. Notes(b)	B2	8.25%	10/01/12		2,375		2,576,875
Stone Container Corp., Sr. Notes(b)	B2	8.375%	07/01/12		2,000		2,170,000
Stone Container Corp., Sr. Sub Notes	B2	11.50%	08/15/06		1,510		1,585,500
Tembec Industries, Inc., Sr. Notes (Canada)	Ba3	7.75%	03/15/12		2,650		2,636,750

							36,412,132

Retail — 0.2%
Couche-Tard, Sr. Sub. Notes	Ba3	7.50%	12/15/13		3,125		3,273,438

Retail & Supermarkets — 3.8%
Ahold Finance USA, Inc., Notes(b)	B1	8.25%	07/15/10		1,120		1,220,800
Asbury Automotive Group, Inc., Sr. Sub. Notes	B3	8.00%	03/15/14		1,800		1,809,000
AutoNation, Inc., Gtd. Notes	Ba2	9.00%	08/01/08		375		430,313
Delhaize America, Inc., Gtd. Notes	Ba1	8.125%	04/15/11		7,260		8,349,000
Dillards, Inc., Notes, Ser. A	B2	6.43%	08/01/04		1,800		1,822,500
Dominos, Inc., Sr. Sub. Notes	B3	8.25%	07/01/11		1,750		1,874,687

SEE NOTES TO FINANCIAL STATEMENTS.

B50




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 2)

Retail & Supermarkets (cont’d.)
General Nutrition Center, Inc., Sr. Sub. Notes	B3	8.50%	12/01/10	$	2,300		$	2,357,500
JC Penney Co., Inc., Deb. Notes	Ba3	7.40%	04/01/37		3,565			3,872,481
JC Penney Co., Inc., Deb. Notes(b)	Ba3	8.00%	03/01/10		2,350			2,693,688
JC Penney Co., Inc., Debs.(b)	Ba3	8.25%	08/15/22		2,075			2,145,031
Pantry, Inc., Sr. Notes	B3	10.25%	10/15/07		2,615			2,706,525
Pathmark Stores, Inc., Gtd. Notes	B2	8.75%	02/01/12		3,000			3,135,000
Pathmark Stores, Inc., Sr. Sub. Notes	B(g)	8.75%	02/01/12		3,000			3,135,000
Rite Aid Corp., Deb. Notes(b)	Caa2	6.875%	08/15/13		1,435			1,377,600
Rite Aid Corp., Deb. Notes(b)	Caa2	7.70%	02/15/27		1,870			1,711,050
Rite Aid Corp., Notes(b)	Caa2	6.875%	12/15/28		2,800			2,359,000
Rite Aid Corp., Sr. Sec’d. Note	B2	8.125%	05/01/10		3,175			3,413,125
Saks, Inc., Gtd. Notes(b)	B1	7.375%	02/15/19		4,500			4,578,750
Sonic Automotive Inc, Sr. Sub. Notes	B2	8.625%	08/15/13		3,400			3,587,000
Sonic Automotive, Inc., Sr. Sub. Notes(b)	B2	8.625%	08/15/13		675			712,125
Winn-Dixie Stores, Inc., Gtd. Notes(b)	Ba2	8.875%	04/01/08		2,775			2,816,625

								56,106,800

Technology — 3.2%
Amkor Technology, Inc., Sr. Notes(b)	B1	9.25%	02/15/08		1,070			1,214,450
Ampex Corp., Sec’d. Notes(c)	NR	12.00%	08/15/08		6,634			331,698
Avaya, Inc., Sec’d. Notes	B2	11.125%	04/01/09		1,000			1,170,000
Flextronics International, Ltd., Sr. Sub. Notes (Singapore)(b)	Ba2	6.50%	05/15/13		3,810			3,943,350
Lucent Technologies, Inc., Debs.(b)	Caa1	6.45%	03/15/29		2,400			1,887,000
Lucent Technologies, Inc., Debs.	Caa1	6.50%	01/15/28		1,325			1,036,813
Lucent Technologies, Inc., Notes(b)	Caa1	5.50%	11/15/08		6,950			6,463,500
ON Semiconductor Corp., Gtd. Notes(b)	Caa1	13.00%	05/15/08		2,230			2,592,375
Sanmina-SCI Corp., Sr. Notes	Ba2	10.375%	01/15/10		1,490			1,743,300
Seagate Technology International, Sr. Notes (Cayman Islands)	Ba2	8.00%	05/15/09		2,000			2,155,000
Unisys Corp., Sr. Notes(b)	Ba1	7.25%	01/15/05		4,100			4,248,625
Unisys Corp., Sr. Notes	Ba1	8.125%	06/01/06		1,760			1,900,800
Xerox Capital Europe PLC, Gtd. Notes (United Kingdom)(b)	B1	5.875%	05/15/04		6,910			6,979,100
Xerox Corp., Sr. Notes(b)	B1	7.125%	06/15/10		3,500			3,745,000
Xerox Corp., Sr. Notes(b)	B1	7.625%	06/15/13		5,575			6,021,000
Xerox Corp., Sr. Notes(b)	B1	9.75%	01/15/09		1,195			1,398,150

								46,830,161

Telecommunications — 8.5%
ACC Escrow Corp., Sr. Notes(b)	B2	10.00%	08/01/11		4,700			5,240,500
American Tower Corp., Sr. Notes(b)	Caa1	9.375%	02/01/09		6,650			7,082,250
AT&T Broadband Corp., Notes	Baa3	8.375%	03/15/13		100	(i)		122
Bestel SA de CV, Sr. Disc. Notes (Mexico)(c)	NR	12.75%	05/15/05		900			90,000
Cellnet Data Systems, Inc., Sr. Disc. Notes (cost $2,739,518; purchased 01/26/99)(c)(e)(f)	NR	14.00%	10/01/07		3,680			37
Cincinnati Bell, Inc., Sr. Sub. Notes(b)	B3	8.375%	01/15/14		3,000			3,225,000
Crown Castle International Corp., Sr. Notes(b)	B3	7.50%	12/01/13		4,250			4,271,250
Crown Castle International Corp., Sr. Notes	B3	7.50%	12/01/13		1,000			1,005,000
Crown Castle International Corp., Sr. Notes(b)	B3	10.75%	08/01/11		3,465			3,898,125
Dobson Communications Corp., Sr. Notes	B3	8.875%	10/01/13		4,000			4,050,000
Dobson Communications Corp., Sr. Notes(b)	B3	10.875%	07/01/10		400			436,000
Eircom Funding, Sr. Sub. Notes (Ireland)	B1	8.25%	08/15/13		4,300			4,762,250
Empresa Brasileira, Gtd. Notes (Brazil)(b)	B2	11.00%	12/15/08		620			637,050
MCI Communications Corp., Debs.(c)	NR	7.125%	06/15/27		500			402,500
MCI Communications Corp., Debs.(b)(c)	NR	7.75%	03/15/24		2,050			1,650,250
MCI Communications Corp., Debs.(b)(c)	NR	7.75%	03/23/25		4,225			3,401,125
MCI Communications Corp., Debs.(b)(c)	NR	8.25%	01/20/23		4,625			3,723,125
MCI Communications Corp., Sr. Notes(c)	NR	6.95%	08/15/06		1,300			1,046,500
Nextel Communications, Inc., Sr. Notes(b)	B2	7.375%	08/01/15		10,550			11,341,250

SEE NOTES TO FINANCIAL STATEMENTS.

B51




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Telecommunications (cont’d.)
Nextel Communications, Inc., Sr. Notes(b)	B2	9.375%	11/15/09	$	5,770	$	6,289,300
Nextel Communications, Inc., Sr. Notes	B2	9.50%	02/01/11		4,160		4,700,800
Nextel Partners, Inc., Sr. Notes(b)	Caa1	8.125%	07/01/11		5,875		6,256,875
Qwest Capital Funding, Inc., Gtd. Notes(b)	Caa2	5.875%	08/03/04		5,175		5,187,938
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.00%	08/03/09		2,400		2,382,000
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.25%	02/15/11		3,325		3,275,125
Qwest Services Corp., Sr. Sec’d. Notes	CCC+	13.50%	12/15/10		16,085		19,543,275
Rogers Wireless Communications, Inc., Sec’d. Notes	Ba3	9.625%	05/01/11		1,300		1,553,500
SBA Communications Corp., Sr. Disc. Notes, Zero Coupon (until 12/15/07)	NR	9.75%	12/15/11		2,900		2,044,500
SBA Communications Corp., Sr. Notes(b)	Caa2	10.25%	02/01/09		4,400		4,323,000
Telus Corp., Notes (Canada)	Ba1	8.00%	06/01/11		3,560		4,162,662
Tritel PCS, Inc., Gtd. Notes	Baa2	10.375%	01/15/11		3,167		3,789,157
Triton PCS, Inc., Gtd. Notes	B2	8.50%	06/01/13		3,010		3,235,750
U.S. West Communications, Inc., Debs.	B2	7.50%	06/15/23		2,000		2,000,000

							125,006,216

Transportation — 3.3%
American Axle & Manufacturing, Inc., Gtd. Notes	Ba1	9.75%	03/01/09		3,940		4,166,550
AMR Corp., Deb. Notes	Caa2	10.00%	04/15/21		1,695		1,288,200
AMR Corp., M.T.N.	B	10.40%	03/15/11		1,000		800,000
AMR Corp., M.T.N.	B	10.55%	03/12/21		1,425		1,097,250
AMR Corp., Notes	Caa2	10.40%	03/10/11		1,000		800,000
ArvinMeritor, Inc., Notes(b)	Baa3	8.75%	03/01/12		5,650		6,469,250
Calair Capital Corp., Gtd. Notes	Caa2	8.125%	04/01/08		1,978		1,720,860
Continental Airlines, Inc., Pass-thru Certs., Ser. 01-1, Class B	Ba1	7.373%	12/15/15		1,417		1,230,900
Continental Airlines, Inc., Pass-thru Certs., Ser. 98-1, Class B	Ba2	6.748%	03/15/17		1,783		1,471,697
Continental Airlines, Inc., Pass-thru Certs., Ser. 99-1, Class B	Ba2	6.795%	02/02/20		969		818,090
Continental Airlines, Inc., Pass-thru Certs., Ser. 99-2, Class B	Ba2	7.566%	03/15/20		898		756,870
Delta Air Lines, Inc., Debs.	B3	10.375%	12/15/22		1,280		923,200
Delta Air Lines, Inc., Notes	B3	7.70%	12/15/05		2,765		2,609,469
Delta Air Lines, Inc., Notes	B3	7.90%	12/15/09		175		141,531
Delta Air Lines, Inc., Pass-thru Certs., Ser. 93, Class A-2	B1	10.50%	04/30/16		2,000		1,582,240
Delta Air Lines, Inc., Sr. Notes	B3	8.30%	12/15/29		2,105		1,391,931
Delta Air Lines, Inc., Sr. Notes	B	10.00%	08/15/08		175		149,844
Holt Group, Inc., Sr. Notes(c)	NR	9.75%	01/15/06		800		23,000
Kansas City Southern Railway, Sr. Notes	Ba3	7.50%	06/15/09		2,750		2,818,750
Lear Corp., Gtd. Notes, Ser. B	Ba1	7.96%	05/15/05		1,275		1,364,250
Navistar International Corp., Sr. Notes, Ser. B	Ba3	9.375%	06/01/06		1,300		1,434,875
Northwest Airlines, Inc., Gtd. Notes	Caa1	8.70%	03/15/07		1,000		875,000
Northwest Airlines, Inc., Gtd. Notes	Caa1	8.875%	06/01/06		350		317,625
Northwest Airlines, Inc., Gtd. Notes	Caa1	9.875%	03/15/07		1,000		910,000
Offshore Logistics, Inc., Gtd. Notes	Ba2	6.125%	06/15/13		4,200		4,116,000
Standyne Automotive Corp., Sr. Sub. Notes, Ser. B	Caa1	10.25%	12/15/07		1,180		1,156,400
Stena AB, Sr. Notes (Sweden)	Ba3	7.50%	11/01/13		3,175		3,270,250
Stena AB, Sr. Notes (Sweden)	Ba3	9.625%	12/01/12		1,600		1,804,000
Trism, Inc., Gtd. Notes(c)	NR	12.00%	02/15/05		1,305		6,523
TRW Automotive, Sr. Notes	B1	9.375%	02/15/13		2,700		3,084,750

							48,599,305

Utilities — 9.3%
AES Corp., Sec’d. Notes(b)	B2	8.75%	05/15/13		9,300		10,392,750
AES Corp., Sr. Notes(b)	B3	9.375%	09/15/10		9,200		10,200,500
AES Corp., Sr. Notes(b)	B3	9.50%	06/01/09		1,325		1,469,094
AES Drax Holdings, Ltd., Sr. Sec’d. Bond, Ser B. (Cayman Islands)	Caa2	10.41%	12/31/20		10,295		8,853,700
AES Eastern Energy LP, Ser. 99-A	Ba1	9.00%	01/02/17		3,193		3,531,490
Aquila, Inc., Sr. Notes	Caa1	6.875%	10/01/04		1,600		1,600,000
Aquila, Inc., Sr. Notes	Caa1	7.625%	11/15/09		475		466,688

SEE NOTES TO FINANCIAL STATEMENTS.

B52




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Utilities (cont’d.)
Aquila, Inc., Sr. Notes	Caa1	9.95%	02/01/11	$	3,635	$	3,880,362
Beaver Valley II Funding Corp., Debs.	Baa3	9.00%	06/01/17		4,000		4,597,680
Calpine Canada Energy Finance, Gtd. Notes (Canada)	Caa1	8.50%	05/01/08		2,500		1,993,750
Calpine Corp., Sr. Notes(b)	Caa1	8.50%	02/15/11		9,140		7,232,025
Calpine Corp., Sr. Notes(b)	Caa1	8.75%	07/15/07		5,000		4,100,000
Calpine Corp., Sr. Sec’d. Notes(b)	B(g)	8.75%	07/15/13		3,025		2,949,375
CMS Energy Corp., Sr. Notes(b)	B3	8.50%	04/15/11		2,580		2,786,400
CMS Energy Corp., Sr. Notes	B3	9.875%	10/15/07		2,725		3,038,375
Cogentrix Energy, Inc., Gtd. Notes, Ser. B	B1	8.75%	10/15/08		700		705,250
Cogentrix Energy, Inc., Sr. Notes	B1	8.10%	03/15/04		938		935,655
Dynegy Holdings, Inc., Debs.	Caa2	7.125%	05/15/18		675		578,812
Dynegy Holdings, Inc., Debs.	Caa2	7.625%	10/15/26		1,425		1,230,844
Dynegy Holdings, Inc., Sr. Notes(b)	Caa2	6.875%	04/01/11		1,210		1,114,712
Dynegy Holdings, Inc., Sr. Notes(b)	Caa2	8.75%	02/15/12		6,365		6,420,694
Dynegy Holdings, Inc., Sr. Sec’d. Notes(b)	B3	10.125%	07/15/13		2,705		3,110,750
Edison Mission Energy, Sr. Notes(b)	B2	7.73%	06/15/09		6,375		6,072,187
Edison Mission Energy, Sr. Notes	B2	9.875%	04/15/11		750		780,000
Empresa Nacional de Electricidad SA, Notes (Chile)(b)	Ba2	8.35%	08/01/13		5,250		5,901,751
Empresa Nacional de Electricidad SA, Notes (Chile)	Ba2	8.625%	08/01/15		4,700		5,354,714
Homer City Funding LLC, Gtd. Notes	Ba2	8.137%	10/01/19		2,125		2,284,375
Midland Funding II, Debs.	Ba3	13.25%	07/23/06		2,875		3,363,750
Midland Funding II Corp., Debs.	Ba3	11.75%	07/23/05		5,943		6,418,576
Midwest Generation LLC, Pass-thru Certs., Ser. A	B2	8.30%	07/02/09		1,640		1,709,761
Mirant Americas Generation LLC, Sr. Notes(b)(c)	Caa3	7.20%	10/01/08		1,050		887,250
Mission Energy Holding Co., Sr. Sec’d. Notes	Caa2	13.50%	07/15/08		1,215		1,190,700
NRG Energy, Inc.(b)	B2	8.00%	12/15/13		4,900		5,151,125
Orion Power Holdings, Inc., Sr. Notes	B2	12.00%	05/01/10		5,055		6,141,825
Reliant Energy Mid-Atlantic Power, Pass-thru Certs., Ser. B	B1	9.237%	07/02/17		1,791		1,828,661
Reliant Energy Mid-Atlantic Power, Pass-thru Certs., Ser. C	B1	9.681%	07/02/26		250		255,224
Reliant Resources, Inc., Sr. Sec’d. Note(b)	B1	9.50%	07/15/13		3,900		4,173,000
Westar Energy, Inc., First Mtge. Notes	Ba1	7.875%	05/01/07		2,205		2,464,088
York Power Funding, Sr. Sec’d. Notes (Cayman Islands) (cost $2,518,597; purchased 07/31/98)(c)(e)(f)	D	12.00%	10/30/07		2,519		1,763,018

							136,928,911

TOTAL CORPORATE BONDS (cost $1,240,416,828)							1,318,278,149

CONVERTIBLE BONDS — 0.8%
Nortel Networks Corp., (Canada)(b)	B3	4.25%	09/01/08		3,810		3,605,213
Solectron Corp.	B1	zero coupon	11/20/20		4,650		2,638,875
Tyco International Group SA (Luxembourg)	Ba2	2.75%	01/15/18		2,950		3,764,937
Tyco International Group SA (Luxembourg)	Ba2	3.125%	01/15/23		1,650		2,256,375

TOTAL CONVERTIBLE BONDS (cost $9,995,344)							12,265,400

FOREIGN GOVERNMENT OBLIGATIONS — 2.3%
Federal Republic of Brazil (Brazil)	B2	8.00%	04/15/14		1,453		1,429,524
Federal Republic of Brazil (Brazil)(b)	B2	9.25%	10/22/10		3,500		3,762,500
Federal Republic of Brazil (Brazil)	B2	10.00%	08/07/11		1,920		2,121,600
Federal Republic of Brazil (Brazil)	B2	11.00%	08/17/40		3,485		3,824,788
Federal Republic of Colombia (Colombia)	Ba2	9.75%	04/23/09		5,255		5,767,362
Federal Republic of Colombia (Colombia)	Ba2	10.00%	01/23/12		1,852		2,027,940
Federal Republic of El Salvador (El Salvador)	Baa3	7.75%	01/24/23		3,015		3,173,288
Federal Republic of Panama (Panama)	Ba1	9.625%	02/08/11		5,000		5,775,000

SEE NOTES TO FINANCIAL STATEMENTS.

B53




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


FOREIGN GOVERNMENT OBLIGATIONS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Republic of Venezuela, (Venezuela)(b)	Caa1	10.75%	09/19/13	$	4,000	$	4,270,000
Republic of Venezuela, (Venezuela)	B-	10.75%	09/19/13		1,100		1,174,250

TOTAL FOREIGN GOVERNMENT OBLIGATIONS (cost $30,259,149)							33,326,252

					Shares
COMMON STOCKS — 0.5%
Adelphia Business Solutions, Inc. (Class “B” Stock)(a)(c)					25,755		232
Birch Telecom, Inc.(a)					15,652		157
Classic Communications, Inc.(a)(e)					6,000		60
GenTek, Inc.(a)					7,489		265,108
IMPSAT Fiber Networks, Inc., (Argentina)(a)					29,831		228,207
Kaiser Group Holdings, Inc., 7.00%(a)					47,054		1,052,833
Link Energy LLC(a)					31,915		215,426
NTL, Inc.(a)					30,930		2,157,368
Premier Cruises, Ltd., (cost $0; purchased 09/15/99)(a)(e)(f)					74,058		74
PSF Group Holdings, Inc.(a)(e)					220		330,375
RCN Corp.(a)					156		125
Samuels Jewelers, Inc.(a)					36,825		829
Sheffield Steel Corp.(a)					135,158		540,632
Star Gas Partners LP					2,561		62,616
Stellex Technologies, Inc.(a)(e)					859		1
Systems Holding, Inc.(a)(e)					29,402		294
Trism, Inc.(a)					82,628		41
UnitedGlobalCom, Inc., (Class “A” Stock)					212,736		1,804,003
York Research Corp.(a)(e)					4,155		0

TOTAL COMMON STOCKS (cost $18,295,311)							6,658,381

PREFERRED STOCKS — 1.8%
Adelphia Communications Corp., PIK, 13.00%					5,000		75,000
AmeriKing, Inc., PIK, 13.00%					36,672		367
CSC Holdings, Inc., 11.125%					55,454		5,822,670
Dobson Communications Corp., PIK, 12.25%					3,045		3,242,925
Eagle-Picher Holdings, Inc., 11.75%					170		1,241,000
Electronic Retailing Systems International, (cost $0; purchased 09/09/97)(e)(f)					1,046		10
Eott Energy Partners LP, Sr. Notes, PIK, 10.00%					277,806		273,639
Global Crossing Holdings, Ltd., PIK, 7.00%					17,103		171
Kaiser Government Programs, Inc., 7.00%(e)					39,057		391
Kaiser Group Holdings, Inc., 7.00%					24,882		1,281,423
McLeodUSA, Inc., 2.50%					18,063		137,640
New Millenium Homes, 10.00%(e)					3,000		30
NTL Europe, Inc., 10.00%					14		105
Paxon Communications, Inc., PIK, 13.25%					1,035		9,522,000
PRIMEDIA, Inc., 10.00%					20,918		2,049,964
TVN Entertainment Corp., 14.00%(e)					160,625		353,375
World Access, Inc., 13.25%, (cost $2,000,000; purchased 02/11/00)(e)(f)					1,435		1
Xerox Corp., 6.25%					16,920		2,195,370

TOTAL PREFERRED STOCKS (cost $34,283,259)							26,196,081

WARRANTS(a)			Expiration Date	Units
Allegiance Telecommunications, Inc.			02/03/08		3,800		475
Asia Pulp & Paper, Ltd., (cost $0; purchased 03/09/00)(f)			03/15/05		1,295		0
Bell Technology Group, Ltd.			05/01/05		1,250		13
Bestel SA de CV, (Mexico)			05/15/05		2,500		0
Electronic Retailing Systems(e)			02/01/04		2,000		20
GenTek, Inc.			10/31/06		14,423		144
GenTek, Inc.			10/31/08		7,516		75

SEE NOTES TO FINANCIAL STATEMENTS.

B54




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


WARRANTS (Continued)	Expiration Date	Units	Value (Note 2)
GenTek, Inc.	10/31/10	3,671	$	37
GT Group Telecommunication, Inc., (Canada)	02/01/10	3,050		763
HF Holdings, Inc.(e)	09/27/09	18,093		18
ICG Communications, Inc.	10/15/05	20,790		208
McLeodUSA, Inc.	04/16/07	40,027		20,414
MGC Communications, Inc.	10/01/04	1,950		115
National Restaurant Enterprises Holdings, Inc.	05/15/08	250		0
Price Communications Corp.	08/01/07	6,880		248,010
Primus Telecommunications Group	08/01/04	1,500		1,875
Star Choice Communications, Inc., (cost $0; purchased 12/18/97)(f)	12/15/05	69,480		277,920
Sterling Chemical Holdings, Inc.	08/15/08	560		0
Tellus Corp.(e)	09/15/05	42,866		33
Verado Holdings, Inc., Ser. B	04/15/08	1,175		464
Versatel Telecommunications	05/15/08	2,000		20
Viasystems Group, Inc.(e)	01/31/10	45,109		0
Wam!Net, Inc.	03/01/05	3,000		30
XM Satellite Radio, Inc.	03/03/10	5,005		51

TOTAL WARRANTS (cost $3,101,736)				550,685

RIGHT
Netia Holdings BV
(cost $0)		302,168		322,924

TOTAL LONG-TERM INVESTMENTS (cost $1,336,351,627)				1,397,597,872



SHORT-TERM INVESTMENT — 28.6%	Shares
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series, (Note 4)(d) (cost $419,462,644)	419,462,644		419,462,644

TOTAL INVESTMENTS — 123.9% (cost $1,755,814,271; Note 6)			1,817,060,516
LIABILITIES IN EXCESS OF OTHER ASSETS — (23.9)%			(350,373,328	)

TOTAL NET ASSETS — 100%		$	1,466,687,188

The following abbreviations are used in portfolio descriptions:


CBO		Collateralized Bond Obligation
L.P.		Limited Partnership
M.T.N.		Medium Term Note
NR		Not rated by Moody’s or Standard & Poor’s
PIK		Payment-in-kind

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $362,328,575; cash collateral of $377,052,545 was received with which the portfolio purchased securities.

(c)	Represents issuer in default on interest payments, non-income producing security.

(d)	Represents security, or a portion thereof, purchased with cash collateral received for securities of loan.

(e)	Indicates a fair valued security.

(f)	Indicates a restricted security; the aggregate cost of the restricted securities is $12,895,851. The aggregate value, $8,159,935 is approximately 0.6% of net assets.

(g)	Standard & Poor’s rating.

(h)	Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(i)	Amount is actual; not rounded to thousands.

SEE NOTES TO FINANCIAL STATEMENTS.

B55




		*JENNISON PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.9%
COMMON STOCKS	Shares	Value (Note 2)
Automobiles — 0.9%
Harley-Davidson, Inc.(b)	357,300	$	16,982,469

Beverages — 0.8%
Anheuser-Busch Companies, Inc.	275,600		14,518,608

Biotechnology — 7.1%
Amgen, Inc.(a)	928,300		57,368,940
Genentech, Inc.(a)(b)	376,900		35,266,533
Gilead Sciences, Inc.(a)(b)	452,100		26,285,094
MedImmune, Inc.(a)	451,200		11,460,480

			130,381,047

Capital Markets — 5.2%
Goldman Sachs Group, Inc.(b)	354,600		35,009,658
Merrill Lynch & Co., Inc.	544,000		31,905,600
State Street Corp.	545,900		28,430,472

			95,345,730

Commercial Services & Supplies — 1.0%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	279,700		19,019,600

Communications Equipment — 4.4%
Cisco Systems, Inc.(a)(b)	2,762,900		67,110,841
Motorola, Inc.	290,800		4,091,556
Nokia Oyj, ADR (Finland)(a)(b)	324,100		5,509,700
QUALCOMM, Inc.	100,900		5,441,537

			82,153,634

Computers & Peripherals — 6.4%
Dell, Inc.(a)	1,244,900		42,276,804
EMC Corp.(a)(b)	1,937,600		25,033,792
Hewlett-Packard Co.	809,900		18,603,403
International Business Machines Corp.	357,000		33,086,760

			119,000,759

Consumer Finance — 2.6%
American Express Co.(b)	982,000		47,361,860

Diversified Financials — 2.4%
Citigroup, Inc.(b)	898,700		43,622,898

Electronic Equipment & Instruments — 1.9%
Agilent Technologies, Inc.(a)	1,214,000		35,497,360

Energy Equipment & Services — 3.0%
BJ Services Co.(a)	501,000		17,985,900
Schlumberger Ltd.(b)	680,000		37,209,600

			55,195,500

Food & Staples Retailing — 4.0%
Costco Wholesale Corp.(a)	493,200		18,337,176
Wal-Mart Stores, Inc.	678,200		35,978,510
Whole Foods Market, Inc.(a)(b)	282,900		18,991,077

			73,306,763

Health Care Equipment & Supplies — 1.5%
Alcon, Inc. (Switzerland)(b)	88,000		5,327,520
Medtronic, Inc.	444,400		21,602,284

			26,929,804

Health Care Providers & Services — 0.5%
Caremark Rx, Inc.(a)(b)	357,700		9,060,541


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Hotels Restaurants & Leisure — 3.7%
Marriott International, Inc. (Class “A” Stock)	198,700	$	9,179,940
McDonald’s Corp.	887,300		22,031,659
Starbucks Corp.(a)	1,092,700		36,124,662

			67,336,261

Household Durables — 0.2%
Harman International Industries, Inc.	56,600		4,187,268

Household Products — 0.9%
Procter & Gamble Co. (The)(b)	161,500		16,130,620

Industrial Conglomerates — 3.5%
3M Co.	219,700		18,681,091
General Electric Co.	1,489,300		46,138,514

			64,819,605

Insurance — 1.5%
American International Group, Inc.(b)	424,537		28,138,312

Internet & Catalog Retail — 2.3%
eBay, Inc.(a)(b)	386,800		24,983,412
InterActiveCorp(a)(b)	538,700		18,278,091

			43,261,503

Internet Software & Services — 1.5%
Yahoo!, Inc.(a)(b)	605,800		27,363,986

Media — 6.0%
Clear Channel Communications, Inc.	406,300		19,027,029
Hughes Electronics Corp.(a)(b)	718,503		11,891,226
Univision Communications, Inc. (Class “A” Stock)(a)(b)	727,500		28,874,475
Viacom, Inc. (Class “B” Stock)	1,163,219		51,623,659

			111,416,389

Oil & Gas — 2.0%
Total SA (France)(a)	193,780		36,028,174

Personal Products — 1.0%
Avon Products, Inc.	281,900		19,025,431

Pharmaceuticals — 9.2%
Allergan, Inc.(b)	231,200		17,758,472
AstraZeneca PLC, ADR (United Kingdom)(b)	455,300		22,027,414
Forest Laboratories, Inc.(a)	170,400		10,530,720
Novartis AG, ADR (Switzerland)(a)	480,800		22,063,912
Pfizer, Inc.	1,262,191		44,593,208
Roche Holdings Group, ADR (Switzerland)(a)	260,800		26,306,687
Teva Pharmaceutical Industries Ltd., ADR (Israel)(b)	472,200		26,778,477

			170,058,890

Semiconductor Equipment & Products — 10.8%
Altera Corp.(a)	951,600		21,601,320
AMIS Holdings, Inc.(a)	273,000		4,990,440
Analog Devices, Inc.	334,400		15,265,360

SEE NOTES TO FINANCIAL STATEMENTS.

B56




		*JENNISON PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductor Equipment & Products (cont’d.)
Applied Materials, Inc.(a)	501,500	$	11,258,675
Intel Corp.(b)	2,050,200		66,016,440
KLA-Tencor Corp.(a)(b)	476,800		27,973,856
Marvell Technology Group Ltd. (Bermuda)(a)(b)	122,300		4,638,839
Texas Instruments, Inc.	1,612,400		47,372,312

			199,117,242

Software — 6.7%
Electronic Arts, Inc.(a)(b)	395,700		18,906,546
Microsoft Corp.	2,040,300		56,189,862
PeopleSoft, Inc.(a)	656,500		14,968,200
SAP AG, ADR (Germany)(a)(b)	805,300		33,468,254

			123,532,862

Specialty Retail — 5.5%
Bed Bath & Beyond, Inc.(a)	1,000,800		43,384,680
CarMax, Inc.(a)	56,500		1,747,545
Lowe’s Companies, Inc. (The)(b)	344,900		19,104,011
Tiffany & Co.(b)	844,000		38,148,800

			102,385,036


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Wireless Telecommunication Services — 1.4%
Vodafone Group PLC, ADR (United Kingdom)(b)	1,062,000	$	26,592,480

TOTAL LONG-TERM INVESTMENTS (cost $1,553,767,274)			1,807,770,632

SHORT-TERM INVESTMENT — 29.7%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series (cost $548,869,541; Note 4)(c)	548,869,541		548,869,541

TOTAL INVESTMENTS — 127.6% (cost $2,102,636,815; Note 6)			2,356,640,173
LIABILITIES IN EXCESS OF OTHER ASSETS — (27.6)%			(509,935,538	)

NET ASSETS — 100%		$	1,846,704,635

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $478,549,044; cash collateral of $495,524,246 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B57




		*MONEY MARKET PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Bank Notes — 1.8%
American Express Centurion Bank(a)	1.11%	01/29/04	$	17,000	$	16,999,447

Certificates of Deposit — 28.9%
Banco Bilbao Vizcaya	1.20%	08/27/04		15,000		15,000,000
BNP Paribas SA	1.10%	03/03/04		10,000		10,000,000
BNP Paribas SA	1.33%	04/13/04		20,000		20,000,000
BNP Paribas SA	1.15%	07/22/04		10,000		9,999,443
Citibank NA	1.09%	02/05/04		25,000		25,000,928
Credit Agricole Indosuez	1.23%	08/04/04		15,000		14,999,111
Credit Agricole Indosuez	1.44%	10/27/04		15,000		15,000,000
Danske Bank	1.32%	08/11/04		11,000		11,004,710
HBOS Treasury Services PLC	1.12%	02/23/04		48,000		48,000,000
Natexis Banque Populaires	1.10%	03/17/04		17,000		17,000,000
Royal Bank of Scotland PLC	1.07%	01/12/04		20,000		20,000,228
Toronto Dominion	1.345%	04/16/04		20,000		20,011,513
Wells Fargo Bank NA	1.08%	01/12/04		14,000		13,999,979
Wells Fargo Bank NA	1.05%	01/30/04		30,000		29,999,879

						270,015,791

Commercial Paper — 32.6%
Alliance & Leicester PLC	1.09%	03/19/04		6,000		5,985,830
Amsterdam Funding Corp.	1.09%	01/15/04		5,766		5,763,556
Aventis SA	1.10%	01/28/04		14,590		14,577,963
Danske Bank	1.10%	02/23/04		3,100		3,094,980
Falcon Asset Securitization Corp.	1.08%	01/27/04		41,355		41,322,743
Long Lane Master Trust IV	1.12%	01/20/04		1,000		999,409
Long Lane Master Trust IV	1.12%	03/25/04		5,043		5,029,821
Market Street Funding Corp.	1.10%	01/29/04		4,539		4,535,117
J.P. Morgan Chase & Co.	1.09%	01/28/04		22,000		21,982,015
Natexis Banque Populaires	1.11%	02/20/04		30,000		29,953,750
Nationwide Building Society	1.09%	03/05/04		15,000		14,970,933
New Center Asset Trust	1.10%	02/25/04		4,000		3,993,278
New Center Asset Trust	1.10%	03/19/04		5,000		4,988,137
Nordea North America, Inc.	1.08%	01/22/04		1,670		1,668,948
Nyala Funding LLC	1.16%	02/18/04		7,000		6,989,173
Old Line Funding	1.09%	01/15/04		20,000		19,991,522
Park Granada LLC	1.12%	01/16/04		4,382		4,379,955
Prudential PLCx	1.09%	03/05/04		15,000		14,970,933
Sheffield Receivables Corp.	1.09%	01/26/04		20,000		19,984,861
Spintab/Swedmortgage AB	1.09%	03/16/04		31,000		30,929,604
Stadshypotek Delaware	1.10%	02/19/04		48,000		47,928,134

						304,040,662

Loan Participation — 0.7%
Countrywide Homes Loan, Inc.	1.15%	01/23/04		3,000		3,000,000
Countrywide Homes Loan, Inc.	1.15%	01/30/04		4,000		4,000,000

						7,000,000

Other Corporate Obligations — 22.4%
American Express Credit Corp.	1.20%	01/05/04		8,000		8,000,000
GE Capital Assurances Co. (cost $8,000,000; purchased 7/17/2003)(a)(b)	1.229%	01/22/04		8,000		8,000,000
General Electric Capital Corp.(a)	1.25%	01/09/04		15,000		15,000,000
General Electric Capital Corp.(a)	1.23%	01/19/04		24,000		24,000,000
Goldman Sachs Group, LP(a)	1.312%	03/15/04		45,000		45,000,000
Merrill Lynch & Co., Inc.(a)	1.28%	01/02/04		19,000		19,007,213
Merrill Lynch & Co., Inc.(a)	1.295%	01/12/04		28,000		28,000,000
Metropolitan Life Insurance (cost $9,000,000; purchased 9/26/2002)(a)(b)	1.242%	01/02/04		9,000		9,000,000
Metropolitan Life Insurance (cost $9,000,000; purchased 2/05/2003)(a)(b)	1.26%	02/09/04		9,000		9,000,000
J.P. Morgan Chase & Co.	1.282%	01/15/04		25,000		25,000,000
Pacific Life Insurance (cost $7,000,000; purchased 12/16/2003)(a)(b)	1.288%	03/16/04		7,000		7,000,000

SEE NOTES TO FINANCIAL STATEMENTS.

B58




		*MONEY MARKET PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Other Corporate Obligations (cont’d.)
Royal Bank of Canada	1.15%	01/12/04	$	5,000	$	5,000,000
Travelers Insurance Co. (cost $7,000,000; purchased 6/30/2003)(a)(b)	1.23%	01/08/04		7,000		7,000,000

						209,007,213

Repurchase Agreement — 1.3%
Greenwich Capital Management(c)	1.01%	01/02/04		11,738		11,738,000

U.S. Government Obligations — 12.0%
Federal Home Loan Bank	1.25%	07/02/04		15,000		15,000,000
Federal Home Loan Mortgage Corp.	1.30%	04/22/04		15,000		14,939,567
Federal Home Loan Mortgage Corp.	1.43%	09/03/04		45,000		45,000,000
Federal National Mortgage Association	1.13%	04/28/04		15,000		14,944,442
Federal National Mortgage Association	5.625%	05/14/04		10,000		10,154,422
Federal National Mortgage Association	6.50%	08/15/04		5,000		5,162,839
Federal National Mortgage Association	1.47%	09/22/04		7,000		7,000,000

						112,201,270

TOTAL INVESTMENTS — 99.7% (amortized cost $931,002,383; Note 6)(d)						931,002,383

OTHER ASSETS IN EXCESS OF LIABILITIES — 0.3%						2,648,356

TOTAL NET ASSETS — 100.0%					$	933,650,739

(a)	Indicates a variable rate security. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(b)	Indicates a restricted security and deemed illiquid. The aggregate cost and value of restricted securities is $40,000,000, and represents 4.3% of net assets.

(c)	Greenwich Capital Repurchase Agreement, repurchase price $11,738,650 due 1/2/04. The value of the collateral including accrued interest was $11,973,016. Collateralized by United States Treasury or federal agency obligations.

(d)	Federal income tax basis is the same as for financial reporting purposes.

The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2003 was as follows:


Commercial Banks	41.6	%
Life Insurance	20.4	%
Asset Backed Securities	16.1	%
Federal Credit Agencies	12.0	%
Short Term Business Credit	4.2	%
Mortgage Bankers	3.8	%
Pharmaceuticals	1.6	%

	99.7	%
Other assets in excess of liabilities	0.3	%

	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

B59




		*NATURAL RESOURCES PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.8%
COMMON STOCKS — 96.6%	Shares	Value (Note 2)
Chemicals — 0.3%
Hokko Chemical Industry Co., Ltd. (Japan)	450,900	$	1,485,189

Energy Equipment & Services — 24.6%
B.J. Services Co.(a)	686,200		24,634,580
Cooper Cameron Corp.(a)	72,700		3,387,820
ENSCO International, Inc.	230,200		6,254,534
FMC Technologies, Inc.(a)	195,261		4,549,581
Grant Prideco, Inc.(a)	213,400		2,778,468
Grey Wolf, Inc.(a)	326,000		1,219,240
Hydril Co.(a)	96,200		2,302,066
Lone Star Technologies, Inc.(a)	91,000		1,454,180
Maverick Tube Corp.(a)	368,900		7,101,325
Nabors Industries, Ltd. (Barbados)(a)(b)	186,400		7,735,600
National-Oilwell, Inc.(a)	183,000		4,091,880
Oil States International, Inc.(a)	478,700		6,673,078
OPTI Canada, Inc. (Class “C” Stock) (Canada)(a)(d)	352,074		4,154,868
Rowan Cos., Inc.(a)(b)	166,500		3,857,805
Smith International, Inc.(a)(b)	584,600		24,272,592
Tesco Corp.(a)	196,300		1,602,604
W-H Energy Services, Inc.(a)	168,800		2,734,560
Weatherford International, Ltd.(a)	391,800		14,104,800

			122,909,581

Food Products — 0.7%
Cresud SA, ADR (Argentina)(b)	287,800		3,525,550

Industrial Conglomerates — 7.6%
Companhia Vale do Rio Doce, ADR (Brazil)(b)	245,200		14,344,200
Phelps Dodge Corp.(a)(b)	207,500		15,788,675
WMC Resorces, Ltd. (Australia)(a)	1,844,300		7,823,380

			37,956,255

Metals & Mining — 29.0%
Alcoa, Inc.(b)	219,900		8,356,200
Alumina, Ltd. (Australia)	1,989,400		9,847,862
Anglo American Platinum, Ltd., ADR (South Africa)(b)	179,069		7,820,015
AngloGold, Ltd., ADR (Canada)(b)	155,476		7,260,729
Aquarius Platinum, Ltd. (Australia)	517,725		3,081,631
Avgold, Ltd., ADR (South Africa)(a)	121,800		1,970,700
AXMIN, Inc. (Canada)(a)	562,700		544,303
Bema Gold Corp. (Canada)(a)(b)	494,200		1,838,424
Century Aluminum Co.(a)	126,000		2,395,260
Coeur d’Alene Mines Corp.(a)	243,825		1,409,308
Crystallex International Corp. (Canada)(a)(b)	734,800		2,028,048
Durban Roodepoort Deep, Ltd. ADR (South Africa)(a)(b)	830,600		2,657,920
European Goldfields, Ltd.(a)	38,400		74,289
FNX Mining Co., Inc. (Canada)(a)	230,600		1,556,070
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	325,000		13,692,250
Gabriel Resources, Ltd.(a)	376,300		1,426,868
Gold Reserve, Inc. (Canada)(a)	121,200		590,876


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Metals & Mining (cont’d.)
Golden Star Resources, Ltd.(a)(b)	238,700	$	1,663,739
Harmony Gold Mining Co., Ltd. (South Africa)	156,400		2,542,232
Harmony Gold Mining Co., Ltd. ADR (South Africa)(b)	278,800		4,524,924
IAMGOLD Corp.(a)	1,717,380		11,987,439
Impala Platinum Holdings, Ltd., ADR (South Africa)	187,900		8,163,447
Ivanhoe Mines, Ltd.(a)(b)	576,300		4,593,453
Kinross Gold Corp.(a)	625,965		4,999,001
Kinross Gold Corp. (Canada)(a)(b)	17,401		139,034
Lihir Gold, Ltd. (Australia)	6,154,600		6,723,916
Massey Energy Co.	338,300		7,036,640
Meridian Gold, Inc.(a)	274,000		4,013,790
Miramar Mining Corp.(a)	234,000		601,380
Miramar Mining Corp. (Canada)(a)	336,000		871,039
Nelson Resources, Ltd. (Canada)(a)	841,500		709,797
Nevsun Resources, Ltd. (Canada)(a)(b)	351,300		1,826,842
Newcrest Mining, Ltd. (Australia)	498,200		4,861,026
Orezone Resourses, Inc. (Canada)(a)(b)	988,500		971,480
Pan American Silver Corp. (Canada)(a)(b)	97,572		1,393,832
Platnium Group Metals, Ltd. (Canada)(a)	1,186,700		1,460,130
Randgold Resources, Ltd., ADR (Channel Islands)(a)(b)	113,800		3,106,740
SouthernEra Resources, Ltd. (Canada)(a)	433,400		1,797,658
Stornoway Diamond Corp. (Canada)(a)	357,800		512,231
Wheaton River Minerals, Ltd. (Canada)(a)(b)	1,229,900		3,683,276

			144,733,799

Oil & Gas — 33.2%
Apache Corp.(b)	64,183		5,205,241
Brigham Exploration Co.(a)	89,500		718,595
Cheniere Energy, Inc.(a)(b)	203,800		2,384,460
Denbury Resources, Inc.(a)(b)	342,700		4,766,957
Encore Aquisition Co.(a)	279,000		6,877,350
Eni SpA, ADR (Italy)(b)	141,300		13,420,674
Evergreen Resources, Inc.(a)(b)	377,400		12,269,274
Genoil, Inc. (Canada)(a)	493,267		57,257
KCS Energy, Inc.(a)	296,972		3,133,055
LUKOIL ADR (Russia)(a)	30,100		2,802,310
McMoRan Exploration Co.(a)(b)	111,300		2,086,875
Noble Energy, Inc.(b)	105,600		4,691,808
Petroleo Brasileiro SA, ADR (Brazil)(a)(b)	210,600		6,157,944
Pioneer Natural Resources Co.(a)	295,560		9,437,231
Quicksilver Resources, Inc.(a)	168,300		5,436,090
Sibneft, ADR (Russia)(a)(b)	49,100		1,522,100
St. Mary Land & Exploration Co.(b)	140,200		3,995,700
Suncor Energy, Inc.(b)	503,000		12,650,416

SEE NOTES TO FINANCIAL STATEMENTS.

B60




		*NATURAL RESOURCES PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares		Value (Note 2)
Oil & Gas (cont’d.)
Surgutneftegaz ADR (Russia)(a)(b)		76,100	$	2,214,510
Swift Energy Co.(a)		304,700		5,134,195
Total SA, ADR (France)(a)		230,300		21,305,053
Trident Resources Corp. (Canada)(a)(d)		412,657		4,470,651
Western Gas Resources, Inc.		482,700		22,807,575
Western Oil Sands, Inc. (Canada)(a)		233,200		5,323,583
Westport Resources Corp.(a)		124,300		3,711,598
YUKOS, ADR (Russia)		69,916		2,936,472

				165,516,974

Paper & Forest Products — 0.7%
TimberWest Forest Corp.		326,500		3,208,783

Real Estate — 0.5%
IRSA Inversiones y Representaciones, SA, GDR (Argentina)(a)(b)		264,300		2,643,000

TOTAL COMMON STOCKS (cost $301,229,451)				481,979,131

LINKED NOTE — 1.5%	Principal Amount (000)
USD Palladium Linked Bank Note, Zero Coupon, 7/13/07 (cost $7,000,001)	$	7,000		7,238,813


PREFERRED STOCK — 0.6%	Shares	Value (Note 2)
Oil & Gas
Surgutneftegaz ADR (Russia)(a)(b) (cost $2,445,104)	79,300	$	3,064,945

WARRANT(a) — 0.1%	Units
Metals & Mining
Pan American Silver Corp., expiring 2/20/08 (cost $139,820)	49,786		357,527

TOTAL LONG-TERM INVESTMENTS (cost $310,814,376)			492,640,416

SHORT-TERM INVESTMENT — 27.7%	Shares
Mutual Fund
Dryden Core Investment Fund —Taxable Money Market Series (cost $138,275,832; Note 4)(c)	138,275,832		138,275,832

TOTAL INVESTMENTS — 126.5% (cost $449,090,208; Note 6)			630,916,248

LIABILITIES IN EXCESS OF OTHER ASSETS — (26.5)%			(132,190,977	)

NET ASSETS — 100%		$	498,725,271

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt
GDR		Global Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate value of $125,254,525; cash collateral of $132,557,956 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral for securities on loan.

(d)	Indicates a fair valued security.

SEE NOTES TO FINANCIAL STATEMENTS.

B61




		*SMALL CAPITALIZATION STOCK PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.2%
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.2%
ADVO, Inc.(b)	39,703	$	1,260,967

Aerospace — 1.7%
AAR Corp.(a)	41,955		627,227
Alliant Techsystems, Inc.(a)	50,976		2,944,374
Curtiss-Wright Corp.(b)	27,216		1,224,992
DRS Technologies, Inc.(a)	35,381		982,884
GenCorp, Inc.	57,987		624,520
Kaman Corp. (Class “A” Stock)	29,800		379,354
Moog, Inc. (Class “A” Stock)(a)	22,720		1,122,368
Trimble Navigation, Ltd.(a)	43,617		1,624,297
Triumph Group, Inc.(a)	20,880		760,032

			10,290,048

Agricultural Products & Services — 0.2%
Delta & Pine Land Co.	50,258		1,276,553

Airlines — 0.5%
Atlantic Coast Airlines Holdings, Inc.(a)	59,762		591,644
Frontier Airlines, Inc.(a)	46,399		661,650
Mesa Air Group, Inc.(a)(b)	41,470		519,204
SkyWest, Inc.	76,283		1,382,248

			3,154,746

Apparel — 1.1%
Fossil, Inc.(a)	61,412		1,720,150
Genesco, Inc.(a)	28,640		433,323
Pacific Sunwear of California, Inc.(a)	103,249		2,180,619
Phillips-Van Heusen Corp.	40,049		710,469
Russell Corp.	42,803		751,621
Wolverine World Wide, Inc.	52,951		1,079,142

			6,875,324

Appliances & Home Furnishings — 0.1%
Applica, Inc.(a)	31,203		237,143
Fedders Corp.	40,051		288,367
Salton, Inc.(a)(b)	14,750		192,487

			717,997

Autos – Cars & Trucks — 0.5%
Midas, Inc.(a)	20,070		287,001
Myers Industries, Inc.	39,751		481,782
Standard Motor Products, Inc.	26,005		315,961
TBC Corp.(a)	28,761		742,321
Tower Automotive, Inc.(a)	74,269		507,257
Wabash National Corp.(a)(b)	34,125		999,863

			3,334,185

Banks and Savings & Loans — 6.6%
Anchor BanCorp Wisconsin, Inc.	30,539		760,421
BankUnited Financial Corp. (Class “A” Stock)(a)	39,024		1,006,429
Boston Private Financial Holdings, Inc.	32,150		798,606
Brookline Bancorp, Inc.	77,521		1,189,172
Chittenden Corp.	48,178		1,620,708
Commercial Federal Corp.	55,638		1,486,091
Community First Bankshares, Inc.	49,505		1,432,675
Dime Community Bancshares	33,752		1,038,212
Downey Financial Corp.	36,877		1,818,036


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Banks and Savings & Loans (cont’d.)
East West Bancorp, Inc.	32,050	$	1,720,444
First Bancorp/Puerto Rico	52,825		2,089,229
First Midwest Bancorp, Inc.	61,477		1,992,470
First Republic Bank(a)	19,160		685,928
FirstFed Financial Corp.(a)	22,431		975,748
Flagstar Bancorp, Inc.(b)	79,709		1,707,367
Gold Banc Corp., Inc.	52,020		731,401
Provident Bankshares Corp.	32,395		953,709
Republic Bancorp, Inc.	83,806		1,130,543
Riggs National Corp.	37,733		623,726
Seacoast Financial Services Corp.	33,995		931,803
Southwest Bancorporation of Texas, Inc.(a)	45,151		1,754,116
Staten Island Bancorp, Inc.	77,488		1,743,480
Sterling Bancshares, Inc.	58,519		780,058
Susquehanna Bancshares, Inc.	52,571		1,314,801
TrustCo Bank Corp.	98,195		1,291,264
UCBH Holdings, Inc.	59,457		2,317,039
Umpqua Holdings Corp.	37,400		777,546
United Bankshares, Inc.	57,994		1,809,413
Waypoint Financial Corp.	44,414		963,340
Whitney Holding Corp.	53,347		2,186,694
Wintrust Financial Corp.	25,984		1,171,878

			40,802,347

Chemicals — 1.7%
A. Schulman, Inc.	39,587		843,995
Arch Chemicals, Inc.	29,691		761,871
Cambrex Corp.	34,062		860,406
Georgia Gulf Corp.	42,893		1,238,750
H.B. Fuller Co.	37,508		1,115,488
MacDermid, Inc.	39,982		1,368,984
OM Group, Inc.(a)	37,400		979,506
Omnova Solutions, Inc.(a)	52,731		253,109
Penford Corp.	11,350		155,835
PolyOne Corp.(a)	121,054		773,535
Quaker Chemical Corp.	12,660		389,295
TETRA Technologies, Inc.(a)	28,915		700,899
WD-40 Co.	22,191		784,674
Wellman, Inc.	42,072		429,555

			10,655,902

Collectibles & Gifts — 0.4%
Action Performance Cos., Inc.	23,593		462,423
Cross (A.T.) Co. (Class “A” Stock)(a)	19,740		131,666
Department 56, Inc.(a)	17,275		226,303
Enesco Group, Inc.(a)	18,541		191,343
Lennox International, Inc.	77,549		1,295,068

			2,306,803

Commercial Services — 3.4%
ABM Industries, Inc.	65,143		1,134,140
Arbitron, Inc.(a)	40,019		1,669,593
Bowne & Co., Inc.	44,667		605,684
Central Parking Corp.	47,603		710,713
Coinstar, Inc.(a)(b)	27,964		505,030
Consolidated Graphics, Inc.(a)	17,747		560,450
CPI Corp.	10,657		215,378

SEE NOTES TO FINANCIAL STATEMENTS.

B62




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Commercial Services (cont’d.)
Dendrite International, Inc.(a)	53,590	$	839,755
eFunds Corp.(a)	62,062		1,076,776
Global Payments, Inc.	49,292		2,322,639
Hooper Holmes, Inc.	85,403		527,791
Information Holdings, Inc.(a)	27,510		607,971
Insurance Auto Auctions, Inc.(a)	15,151		197,721
John H. Harland Co.	37,067		1,011,929
Kroll, Inc.(a)(b)	55,095		1,432,470
Labor Ready, Inc.(a)	53,376		699,226
MAXIMUS, Inc.(a)	27,577		1,079,088
MemberWorks, Inc.(a)(b)	14,271		387,743
Mobile Mini, Inc.(a)	18,864		371,998
NCO Group, Inc.(a)	34,279		780,533
Nelson Thomas, Inc.	18,950		366,303
On Assignment, Inc.(a)	33,180		172,868
PAREXEL International Corp.(a)	34,182		555,799
Pre-Paid Legal Services, Inc.(a)(b)	22,799		595,510
Rewards Network, Inc.(a)(b)	31,884		339,883
Roto-Rooter, Inc.	13,060		602,066
SOURCECORP, Inc.(a)	21,192		543,151
Startek, Inc.	18,869		769,666
Volt Information Sciences, Inc.(a)	20,033		452,746

			21,134,620

Computer Services — 3.8%
Actel Corp.(a)	33,449		806,121
Adaptec, Inc.(a)	143,565		1,267,679
Agilysys, Inc.	42,348		472,180
American Management Systems, Inc.(a)	55,883		842,157
Avid Technology, Inc.(a)	40,568		1,947,264
Black Box Corp.(b)	23,724		1,092,965
Brooktrout, Inc.(a)	16,429		206,677
CACI International, Inc. (Class “A” Stock)(a)	38,134		1,854,075
Carreker Corp.(a)	30,103		421,743
Cerner Corp.(a)(b)	46,705		1,767,784
Ciber, Inc.(a)(b)	84,194		729,120
FactSet Research Systems, Inc.(b)	44,639		1,705,656
FileNet Corp.(a)	49,521		1,341,029
Hutchinson Technology, Inc.(a)	34,246		1,052,722
Insight Enterprises, Inc.(a)	61,417		1,154,640
Manhattan Associates, Inc.(a)	39,483		1,091,310
Mercury Computer Systems, Inc.(a)	27,708		689,929
Midway Games, Inc.(a)(b)	73,739		286,107
NYFIX, Inc.(a)	41,933		333,367
Phoenix Technology, Ltd.(a)	32,015		258,681
Pinnacle Systems, Inc.(a)	87,490		746,290
Progress Software Corp.(a)	46,036		941,896
QRS Corp.(a)	20,982		170,374
Radiant Systems, Inc.(a)	36,553		307,411
RadiSys Corp.(a)	23,824		401,673
Standard Microsystems Corp.(a)	22,293		564,013
TALX Corp.	17,910		412,467
Teledyne Technologies, Inc.(a)	42,475		800,654

			23,665,984


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Construction — 2.6%
Butler Manufacturing Co.(a)	8,281	$	182,182
Coachmen Industries, Inc.	20,489		371,056
ElkCorp	25,913		691,877
Florida Rock Industries, Inc.	37,848		2,075,963
Insituform Technologies, Inc. (Class “A” Stock)(a)	34,839		574,843
M.D.C. Holdings, Inc.(b)	38,844		2,505,438
NVR, Inc.(a)(b)	9,439		4,398,574
Shaw Group, Inc.(a)	76,245		1,038,457
Simpson Manufacturing, Co., Inc.(a)	32,565		1,656,256
Standard Pacific Corp.(b)	43,356		2,104,934
Thomas Industries, Inc.	22,744		788,307

			16,387,887

Consumer Cyclical — 0.1%
JAKKS Pacific, Inc.(a)	33,048		434,912

Containers — 0.3%
AptarGroup, Inc.	47,867		1,866,813

Cosmetics & Soaps
Nature’s Sunshine Products, Inc.	18,306		154,686

Distribution/Wholesalers — 0.7%
Advanced Marketing Services, Inc.	25,118		286,345
Bell Microproducts, Inc. (Class “B” Stock)(a)	34,985		316,964
Castle (A.M.) & Co.(a)	20,813		151,935
SCP Pool Corp.(a)	46,710		1,526,483
United Stationers, Inc.(a)	44,603		1,825,155

			4,106,882

Diversified Manufacturing Operations — 1.4%
Acuity Brands, Inc.	55,147		1,422,793
Barnes Group, Inc.	30,007		969,526
CLARCOR, Inc.	33,407		1,473,249
CUNO, Inc.(a)	22,101		995,208
Griffon Corp.(a)(b)	38,918		788,479
Intermet Corp.	33,703		183,007
Lydall, Inc.(a)	21,387		217,933
Mueller Industries, Inc.(a)	45,171		1,552,075
Standex International Corp.	16,052		449,456
Valmont Industries, Inc.	31,345		725,637

			8,777,363

Drugs & Medical Supplies — 6.7%
Advanced Medical Optics, Inc.(a)(b)	38,701		760,475
American Medical Systems Holdings, Inc.(a)	43,636		951,265
ArthroCare Corp.(a)	27,264		667,968
Cephalon, Inc.(a)(b)	73,452		3,555,811
CIMA Labs, Inc.(a)	19,114		623,499
Coherent, Inc.(a)	39,326		935,959
CONMED Corp.(a)	38,268		910,779
CyroLife, Inc.(a)(b)	25,954		150,014
Diagnostic Products Corp.	37,997		1,744,442
Enzo Biochem, Inc.(a)	39,542		708,197

SEE NOTES TO FINANCIAL STATEMENTS.

B63




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
Haemonetics Corp.(a)	31,927	$	762,736
Hologic, Inc.(a)	26,012		450,788
ICU Medical, Inc.(a)(b)	18,040		618,411
IDEXX Laboratories, Inc.(a)(b)	46,036		2,130,546
INAMED Corp.(a)(b)	46,248		2,222,655
Integra LifeSciences Holdings(a)(b)	35,849		1,026,357
Invacare Corp.	40,913		1,651,658
Medicis Pharmaceutical Corp. (Class “A” Stock)(b)	36,201		2,581,131
NBTY, Inc.(a)	87,666		2,354,709
Noven Pharmaceuticals, Inc.(a)	29,693		451,631
Osteotech, Inc.(a)	22,530		198,264
Owens & Minor, Inc.	51,425		1,126,722
PolyMedica Corp.	33,746		887,857
Possis Medical, Inc.(a)	23,425		462,644
Priority Healthcare Corp.(a)	57,103		1,376,753
Regeneron Pharmaceuticals, Inc.(a)	72,944		1,073,006
ResMed, Inc.(a)	44,797		1,860,867
Respironics, Inc.(a)	46,401		2,092,221
Savient Pharmaceuticals, Inc.(a)	78,485		361,816
SurModics, Inc.(a)(b)	22,999		549,676
Sybron Dental Specialties, Inc.(a)	50,396		1,416,128
Techne Corp.(a)	54,190		2,047,298
Viasys Healthcare, Inc.(a)	39,873		821,384
Vital Signs, Inc.	17,052		557,600
Wilson Greatbatch Technologies, Inc.(a)	27,916		1,180,009

			41,271,276

Education — 0.4%
ITT Educational Services, Inc.(a)(b)	59,702		2,804,203

Electrical Equipment — 0.9%
Anixter International, Inc.(a)(b)	47,774		1,236,391
Baldor Electric Co.(b)	43,262		988,537
C&D Technologies, Inc.	33,603		644,169
Kulicke & Soffa Industries, Inc.(a)(b)	65,994		948,994
MagneTek, Inc.(a)	37,534		247,349
Technitrol, Inc.	53,025		1,099,738
Vicor Corp.(a)	55,143		629,182

			5,794,360

Electronics — 2.7%
Analogic Corp.	17,768		728,488
Artesyn Technologies, Inc.(a)	51,105		435,415
Audiovox Corp.(a)	30,261		388,551
Belden, Inc.	33,506		706,642
Benchmark Electronics, Inc.(a)	53,710		1,869,645
Cable Design Technologies Corp.(a)	55,041		494,819
Checkpoint Systems, Inc.(a)	43,331		819,389
Cohu, Inc.	28,077		537,675
CTS Corp.	47,213		542,949
Dionex Corp.(a)(b)	27,864		1,282,301
EDO Corp.	26,054		642,231
Electro Scientific Industries, Inc.(a)	36,830		876,554
Esterline Technologies, Inc.(a)	27,743		739,906


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Electronics (cont’d.)
Helix Technology Corp.	34,382	$	707,582
Intermagnetics General Corp.(a)	22,025		488,074
InVision Technologies, Inc.(a)	22,332		749,685
Itron, Inc.(a)	27,107		497,684
Keithley Instruments, Inc.	20,404		373,393
Methode Electronics, Inc. (Class “A” Stock)	47,078		575,764
Park Electrochemical Corp.	26,075		690,727
Photronics, Inc.(a)	42,606		848,711
SBS Technologies, Inc.(a)	19,804		291,317
Three-Five Systems, Inc.(a)	28,063		147,050
Ultratech Stepper, Inc.(a)	30,897		907,445
X-Rite, Inc.	27,107		306,851

			16,648,848

Electronic Components — 1.5%
Alliance Semiconductor Corp.(a)	46,339		329,470
Bel Fuse, Inc. (Class “B” Stock)	14,742		481,031
Cubic Corp.	35,245		810,635
Cymer, Inc.(a)(b)	47,563		2,196,935
DSP Group, Inc.(a)	37,817		942,022
FLIR Systems, Inc.(a)	43,396		1,583,954
Microsemi Corp.(a)	38,183		938,538
Planar Systems, Inc.(a)	18,855		458,554
Rogers Corp.(a)	21,365		942,624
Supertex, Inc.(a)	16,819		321,243

			9,005,006

Energy — 0.7%
Advanced Energy Industries, Inc.(a)	42,642		1,110,824
UGI Corp.	56,274		1,907,689
Unisource Energy Corp.(b)	44,370		1,094,164
Veritas DGC, Inc.(a)	44,305		464,316

			4,576,993

Engineering — 0.6%
EMCOR Group, Inc.(a)	19,870		872,293
Engineered Support Systems, Inc.	32,409		1,784,439
URS Corp.(a)	43,582		1,089,986

			3,746,718

Environmental Services — 0.6%
Ionics, Inc.(a)(b)	23,391		745,003
Tetra Tech, Inc.(a)	71,691		1,782,238
Waste Connections, Inc.(a)(b)	37,597		1,420,039

			3,947,280

Exchange Traded Funds — 3.9%
iShares S&P SmallCap 600 Index Fund(b)	180,300		24,160,200

Financial Services — 2.4%
Financial Federal Corp.(a)	24,590		751,224
Hudson United Bancorp	59,101		2,183,782
Irwin Financial Corp.(b)	37,000		1,161,800
Jeffries Group, Inc.	71,970		2,376,449
MAF Bancorp, Inc.	43,560		1,825,164
New Century Financial Corp.(b)	46,449		1,842,632
Piper Jaffray Cos., Inc.(a)	25,400		1,055,878

SEE NOTES TO FINANCIAL STATEMENTS.

B64




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Financial Services (cont’d.)
PRG-Schultz International, Inc.(a)(b)	81,204	$	397,900
South Financial Group, Inc.	77,812		2,167,842
SWS Group, Inc.	22,559		401,550
UICI(a)	61,084		811,196

			14,975,417

Food & Beverage — 1.8%
American Italian Pasta Co. (Class “A” Stock)(a)(b)	23,629		990,055
Corn Products International, Inc.	47,588		1,639,407
Flowers Foods, Inc.	59,319		1,530,430
Hain Celestial Group, Inc.(a)	45,163		1,048,233
International Multifoods Corp.(a)	25,473		458,514
J & J Snack Foods Corp.(a)	11,507		434,504
Lance, Inc.	38,367		576,656
Nash-Finch Co.	15,918		355,608
Performance Food Group Co.(a)(b)	60,445		2,186,296
Ralcorp Holdings, Inc.(a)	38,117		1,195,349
United Natural Foods, Inc.(a)	25,791		926,155

			11,341,207

Furniture — 0.8%
Aaron Rents, Inc.	43,224		870,099
Bassett Furniture Industries, Inc.	15,231		251,312
Ethan Allen Interiors, Inc.	49,193		2,060,203
Interface, Inc.(a)	67,694		374,348
La-Z-Boy, Inc.	70,437		1,477,768

			5,033,730

Healthcare — 2.5%
American Healthways, Inc.(a)(b)	42,170		1,006,598
ArQule, Inc.(a)	36,962		180,374
Cooper Cos., Inc.(b)	41,506		1,956,178
Datascope Corp.	19,542		700,581
Mentor Corp.(b)	60,914		1,465,591
NDCHealth Corp.	46,416		1,189,178
Pharmaceutical Product Development, Inc.(a)	73,875		1,992,409
Renal Care Group, Inc.(a)(b)	64,344		2,650,973
Sierra Health Services, Inc.(a)(b)	36,337		997,450
Smith (A.O.) Corp.	38,518		1,350,056
Sola International, Inc.(a)	40,830		767,604
Theragenics Corp(a)	39,485		215,983
U.S. Oncology, Inc.(a)	111,021		1,194,586

			15,667,561

Hospitals/Healthcare Management — 2.8%
Accredo Health, Inc.(a)	63,162		1,996,551
AMERIGROUP Corp.(a)	32,141		1,370,814
AmSurg Corp.(a)(b)	26,476		1,003,176
Biosite, Inc.(a)(b)	20,507		593,678
Centene Corp.(a)	26,466		741,313
Curative Health Services, Inc.(a)	16,860		232,668
Mid Atlantic Medical Services, Inc.(a)	63,009		4,082,983
Odyssey Healthcare, Inc.(a)(b)	47,879		1,400,939
Orthodontic Centers of America, Inc.(a)(b)	66,065		531,823


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Hospitals/Healthcare Management (cont’d.)
Pediatrix Medical Group, Inc.(a)(b)	31,095	$	1,713,023
Province Healthcare Co.(a)	64,244		1,027,904
RehabCare Group, Inc.(a)	21,271		452,221
Sunrise Assisted Living, Inc.(a)(b)	26,740		1,035,908
United Surgical Partners International, Inc.(a)	36,200		1,211,976

			17,394,977

Housing Related — 0.8%
Champion Enterprises, Inc.(a)	77,537		542,759
Fleetwood Enterprises, Inc.(a)	50,977		523,024
National Presto Industries, Inc.	8,957		323,796
Ryland Group, Inc.(b)	32,699		2,898,439
Skyline Corp.	11,057		385,558

			4,673,576

Human Resources — 0.7%
Administaff, Inc.(a)	35,089		609,847
CDI Corp.(a)	25,781		844,328
Cross Country Healthcare, Inc.(a)	42,106		628,221
Heidrick & Struggles International, Inc.(a)	24,124		525,903
Spherion Corp.(a)	78,736		770,825
Watson Wyatt & Co. Holdings(a)	43,864		1,059,316

			4,438,440

Instrument – Controls — 0.4%
BEI Technologies, Inc.	19,422		388,440
FEI Co.(a)(b)	43,706		983,385
Woodward Governor Co.	14,749		838,186

			2,210,011

Insurance — 2.0%
Delphi Financial Group, Inc.(b)	40,898		1,472,310
Fremont General Corp.	100,141		1,693,384
Hilb, Rogal & Hamilton Co.	47,400		1,520,118
LandAmerica Financial Group, Inc.	24,585		1,284,812
Philadelphia Consolidated Holding Corp.(a)	29,007		1,416,412
Presidential Life Corp.	38,660		508,766
RLI Corp.	33,203		1,243,784
SCPIE Holdings, Inc.	12,971		114,404
Selective Insurance Group, Inc.	35,879		1,161,045
Stewart Information Services Corp.	23,615		957,588
Zenith National Insurance Corp.	24,785		806,752

			12,179,375

Internet — 0.1%
Websense, Inc.(a)	29,511		862,902

Leisure — 2.2%
Argosy Gaming Co.(a)	38,696		1,005,709
Aztar Corp.(a)	45,054		1,013,715
Bally Total Fitness Holding Corp.(a)	44,884		314,188
Huffy Corp.(a)	21,290		111,773
K2, Inc.(a)	43,500		661,635
Marcus Corp.	39,036		640,190
Pinnacle Entertainment, Inc.(a)	34,150		318,278
Polaris Industries, Inc.(b)	28,760		2,547,561
Prime Hospitality Corp.(a)	58,929		601,076

SEE NOTES TO FINANCIAL STATEMENTS.

B65




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Leisure (cont’d.)
Shuffle Master, Inc.(a)	21,889	$	757,797
Sturm Ruger & Co., Inc.	35,486		403,476
The Nautilus Group, Inc.(b)	42,967		603,686
Thor Industries, Inc.	37,801		2,125,172
Winnebago Industries, Inc.	22,392		1,539,450
WMS Industries, Inc.(a)(b)	38,773		1,015,853

			13,659,559

Machinery — 3.0%
Albany International Corp. (Class “A” Stock)(b)	43,973		1,490,685
Applied Industrial Technologies, Inc.	25,359		605,066
Astec Industries, Inc.(a)	25,964		318,578
Cognex Corp.	57,757		1,631,058
Dril-Quip, Inc.(a)	22,818		371,933
Gardner Denver, Inc.(a)	21,230		506,760
IDEX Corp.	43,462		1,807,584
JLG Industries, Inc.(b)	57,282		872,405
Lindsay Manufacturing Co.	15,440		389,860
Manitowoc Co., Inc.	35,042		1,093,310
Milacron, Inc.	45,888		191,353
Paxar Corp.(a)(b)	51,594		691,360
Photon Dynamics, Inc.(a)	21,340		858,722
Regal-Beloit Corp.	33,015		726,330
Robbins & Myers, Inc.	19,034		361,456
Roper Industries, Inc.(b)	47,269		2,328,471
Stewart & Stevenson Services, Inc.	37,698		529,657
Timken Co.	117,468		2,356,408
Toro Co.	32,294		1,498,441

			18,629,437

Media — 1.1%
4Kids Entertainment, Inc.(a)	17,729		461,309
Harman International Industries, Inc.	86,790		6,420,724

			6,882,033

Metals – Ferrous — 1.4%
Century Aluminum Co.(a)	27,800		528,478
Cleveland-Cliffs, Inc.(a)	13,672		696,588
Commercial Metals Co.	37,397		1,136,869
Kaydon Corp.(b)	37,193		961,067
Material Sciences Corp.(a)	18,665		188,703
Maverick Tube Corp.(a)	55,334		1,065,180
Quanex Corp.	21,205		977,551
Reliance Steel & Aluminum Co.	42,282		1,404,185
Steel Dynamics, Inc.(a)(b)	63,450		1,490,440
Steel Technologies, Inc.	12,842		227,175

			8,676,236

Metals – Non Ferrous — 0.3%
Brush Engineered Materials, Inc.(a)	21,829		334,202
Commonwealth Industries, Inc.	21,075		211,593
IMCO Recycling, Inc.(a)	20,231		200,085
Precision Castparts Corp.	1		23
RTI International Metals, Inc.(a)	27,432		462,778
Ryerson Tull, Inc.	32,746		374,942
Wolverine Tube, Inc.(a)	16,200		102,060

			1,685,683


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Mineral Resources — 0.3%
Massey Energy Co.	99,409	$	2,067,707

Miscellaneous Basic Industry — 1.3%
Apogee Enterprises, Inc.	36,228		411,188
Armor Holdings, Inc.(a)	37,150		977,417
Briggs & Stratton Corp.(b)	29,240		1,970,776
Lawson Products, Inc.	12,541		416,110
Libbey, Inc.	17,959		511,472
Meade Instruments Corp.(a)	26,220		90,459
Texas Industries, Inc.	27,843		1,030,191
Tredegar Industries, Inc.	50,284		780,911
Watsco, Inc.	34,380		781,457
Watts Water Technologies (Class “A” Stock)	41,631		924,208

			7,894,189

Miscellaneous – Consumer Growth/Staple — 0.3%
DIMON, Inc.	59,433		401,173
Hughes Supply, Inc.	31,194		1,547,846

			1,949,019

Networking — 0.2%
Aeroflex, Inc.(a)	87,644		1,024,558
C-COR.net Corp.(a)	48,206		536,533

			1,561,091

Office Equipment & Supplies — 0.5%
Global Imaging Systems, Inc.(a)	28,577		907,320
Imagistics International, Inc.(a)	22,160		831,000
New England Business Service, Inc.	17,464		515,188
Standard Register Co.	37,495		631,041

			2,884,549

Oil & Gas — 3.9%
Cabot Oil & Gas Corp. (Class “A” Stock)	42,826		1,256,943
Cascade Natural Gas Corp.	14,739		310,845
Cimarex Energy Co.(a)	54,926		1,465,975
Evergreen Resources, Inc.(a)	56,368		1,832,524
Frontier Oil Corp.	34,492		593,952
Laclede Group, Inc.	25,220		720,031
Lone Star Technologies, Inc.(a)	37,716		602,702
Newfield Exploration Co.(a)	73,887		3,290,927
Northwest Natural Gas Co.	34,127		1,049,405
Nuevo Energy Co.(a)	25,689		620,903
Piedmont Natural Gas Co., Inc.(b)	44,272		1,924,061
Prima Energy Corp.(a)	17,065		600,005
Remington Oil and Gas Corp.(a)	35,415		697,321
Southern Union Co.(a)(b)	96,199		1,770,062
Southwest Gas Corp.	44,839		1,006,636
Spinnaker Exploration Co.(a)	43,869		1,415,653
Swift Energy Co.(a)	36,182		609,667
Tom Brown, Inc.(a)	60,156		1,940,031
Unit Corp.(a)	57,470		1,353,418
Vintage Petroleum, Inc.	84,761		1,019,675

			24,080,736

SEE NOTES TO FINANCIAL STATEMENTS.

B66




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Oil & Gas Services — 2.8%
Atwood Oceanics, Inc.(a)	18,255	$	583,065
Cal Dive International, Inc.(a)	49,747		1,199,400
CARBO Ceramics, Inc.	20,590		1,055,238
Energen Corp.	47,673		1,956,023
Hydril Co.(a)	30,119		720,748
Input/Output, Inc.(a)	67,564		304,714
New Jersey Resources Corp.	36,095		1,390,019
NUI Corp.	21,070		339,648
Oceaneering International, Inc.(a)	32,045		897,260
Offshore Logistics, Inc.	29,664		727,361
Patina Oil & Gas Corp.	45,079		2,208,420
Plains Resources, Inc.(a)	31,047		498,304
SEACOR SMIT, Inc.(a)	24,674		1,037,048
Southwestern Energy Co.(a)	46,950		1,122,105
St. Mary Land & Exploration Co.	37,134		1,058,319
Stone Energy Corp.(a)	34,794		1,477,005
W-H Energy Services, Inc.(a)	35,914		581,807

			17,156,484

Paper & Forest Products — 0.9%
Brady (W.H.) Co. (Class “A” Stock)	30,861		1,257,586
Buckeye Technologies, Inc.(a)	48,749		489,927
Caraustar Industries, Inc.(a)	37,052		511,317
Chesapeake Corp.	20,227		535,611
Pope & Talbot, Inc.	20,624		363,189
Rock-Tenn Co. (Class “A” Stock)	45,949		793,080
Schweitzer-Mauduit Int’l, Inc.	19,513		581,097
Universal Forest Products, Inc.	23,490		755,908

			5,287,715

Pharmaceuticals — 0.5%
Alpharma, Inc. (Class “A” Stock)	68,506		1,376,970
MGI Pharma, Inc.(a)(b)	41,665		1,714,515

			3,091,485

Photography — 0.1%
Concord Camera Corp.(a)(b)	37,831		349,937

Real Estate Investment Trust — 1.8%
Capital Automotive REIT	43,045		1,377,440
Colonial Properties Trust	34,549		1,368,140
Essex Property Trust, Inc.(b)	30,143		1,935,783
Gables Residential Trust	37,636		1,307,475
Glenborough Realty Trust, Inc.	36,597		730,110
Kilroy Realty Corp.	36,984		1,211,226
Lexington Corporate Properties Trust	53,461		1,079,378
Shurgard Storage Centers, Inc. (Class “A” Stock)	60,205		2,266,718

			11,276,270

Restaurants — 2.1%
CEC Entertainment, Inc.(a)(b)	34,075		1,614,814
IHOP Corp.	28,161		1,083,635
Jack in the Box, Inc.(a)	47,496		1,014,514
Landry’s Restaurants, Inc.	36,331		934,433
Lone Star Steakhouse & Saloon, Inc.	27,510		637,682
O’Charley’s, Inc.(a)	27,477		493,212
P.F. Chang’s China Bistro, Inc.(a)(b)	33,619		1,710,535
Papa John’s International, Inc.(a)(b)	23,673		790,205
RARE Hospitality International, Inc.(a)	44,365		1,084,281


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Restaurants (cont’d.)
Ryan’s Family Steak Houses, Inc.(a)	55,743	$	843,949
Sonic Corp.(a)	51,856		1,587,831
The Steak’N Shake Co.(a)	35,969		642,047
Triarc Cos., Inc. (Class “A” Stock)(b)	78,124		842,177

			13,279,315

Retail — 7.1%
AnnTaylor Stores Corp.(a)(b)	59,714		2,328,846
Arctic Cat, Inc.	27,658		683,153
Brown Shoe Co., Inc.	23,771		901,634
Building Materials Corp.	17,579		273,002
Burlington Coat Factory Warehouse Corp.	58,709		1,242,282
Caseys Gen. Stores, Inc.	65,767		1,161,445
Cash America International, Inc.	36,853		780,547
Cato Corp. (Class “A” Stock)	26,790		549,195
Christopher & Banks Corp.	49,724		971,110
Cost Plus, Inc.(a)	28,784		1,180,144
Dress Barn, Inc.(a)	38,664		579,573
Duane Reade, Inc.(a)	31,642		535,383
Electronics Boutique Holdings Corp.(a)(b)	32,756		749,785
Fred’s, Inc.	51,620		1,599,188
Goody’s Family Clothing, Inc.	43,276		405,063
Great Atlantic & Pacific Tea Co., Inc.(a)	50,751		426,308
Group 1 Automotive, Inc.(a)	29,914		1,082,588
Guitar Center, Inc.(a)	31,400		1,023,012
Hancock Fabrics, Inc.	24,786		358,901
Haverty Furniture Cos., Inc.	29,261		581,123
Hot Topic, Inc.(a)(b)	63,119		1,859,486
J. Jill Group, Inc.(a)	25,824		328,223
Jo-Ann Stores, Inc. (Class “A” Stock)(a)	28,497		581,339
K-Swiss, Inc. (Class “A” Stock)	46,480		1,118,309
Linens ‘n Things, Inc.(a)	59,013		1,775,111
Movie Gallery, Inc.	43,070		804,548
Panera Bread Co. (Class “A” Stock)(a)(b)	39,515		1,562,028
Pep Boys-Manny, Moe & Jack(b)	72,002		1,646,686
Quiksilver, Inc.(a)	73,033		1,294,875
Regis Corp.	57,614		2,276,905
Russ Berrie & Co., Inc.	27,209		922,385
School Specialty, Inc.(a)	24,920		847,529
Shopko Stores, Inc.(a)	38,400		585,600
Stein Mart, Inc.(a)	54,968		452,936
Stride Rite Corp.	51,757		588,995
The Childrens Place Retail Stores, Inc.(a)(b)	35,278		942,981
The Gymboree Corp.(a)	39,066		673,107
The Men’s Wearhouse, Inc.(a)	52,049		1,301,745
Too, Inc.(a)	45,260		763,989
Tractor Supply Co.(a)	49,177		1,912,493
Ultimate Electronics, Inc.(a)	19,294		147,213
Urban Outfitters, Inc.(a)	52,356		1,939,790
Wet Seal, Inc.(a)	39,588		391,525
Zale Corp.(a)	34,339		1,826,835

			43,956,915

SEE NOTES TO FINANCIAL STATEMENTS.

B67




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductors — 2.2%
ATMI, Inc.(a)	40,819	$	944,552
Axcelis Technologies, Inc.(a)	130,496		1,333,669
Brooks Automation, Inc.(a)(b)	57,140		1,381,074
DuPont Photomasks, Inc.(a)	23,877		576,391
ESS Technology, Inc.(a)	51,201		870,929
Exar Corp.(a)	53,605		915,573
Kopin Corp.(a)	91,924		616,810
Pericom Semiconductor Corp.(a)	34,103		363,538
Power Integrations, Inc.(a)(b)	39,773		1,330,804
Rudolph Technologies, Inc.(a)	21,704		532,616
Skyworks Solutions, Inc.(a)	196,001		1,705,209
Varian Semiconductor Equipment Associates, Inc.(a)(b)	47,191		2,061,775
Veeco Instruments, Inc.(a)	38,606		1,088,689

			13,721,629

Software — 2.6%
ANSYS, Inc.(a)	20,135		799,360
BARRA, Inc.	25,673		911,135
Captaris, Inc.(a)	42,342		237,962
Catapult Communications Corp.(a)	17,015		246,718
Concerto Software, Inc.(a)	14,689		175,974
Concord Communications, Inc.(a)	23,699		473,269
EPIQ Systems, Inc.(a)	23,390		400,671
Gerber Scientific, Inc.(a)	29,230		232,671
Hyperion Solutions Corp.(a)(b)	52,892		1,594,165
JDA Software Group, Inc.(a)	38,167		630,137
ManTech International Corp. (Class “A” Stock)(a)	42,300		1,055,385
MapInfo Corp.(a)	20,282		204,443
MICROS Systems, Inc.(a)	23,924		1,037,345
MRO Software, Inc.(a)	32,289		434,610
Netegrity, Inc.(a)(b)	45,791		472,105
PC-Tel, Inc.(a)	27,040		286,894
Rainbow Technologies, Inc.(a)	35,290		397,365
Roxio, Inc.(a)(b)	36,765		176,104
SCM Microsystems, Inc.(a)	20,070		154,940
SERENA Software, Inc.(a)(b)	51,709		948,860
SPSS, Inc.(a)	22,888		409,237
Take-Two Interactive Software, Inc.(a)	58,090		1,673,573
THQ, Inc.(a)	50,319		850,894
Verity, Inc.(a)	49,525		826,572
Webex Communications, Inc.(a)(b)	56,355		1,132,736
Zixit Corp.(a)(b)	36,783		319,644

			16,082,769

Supermarkets — 0.3%
Kronos, Inc.(a)	39,962		1,582,895

Technology — 0.1%
Systems & Computer Technology Corp.(a)	44,587		728,997

Telecommunications — 1.1%
Boston Communications Group, Inc.(a)	24,365		226,351
Commonwealth Telephone Enterprises, Inc.(a)	31,671		1,195,580


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Telecommunications (cont’d.)
Digi International, Inc.(a)	27,080	$	259,968
General Communication, Inc.(a)	74,284		646,271
Harmonic, Inc.(a)	92,079		667,573
Intermediate Telephone, Inc.	33,180		828,836
Intrado, Inc.(a)	21,200		465,340
J2 Global Communications, Inc.(a)(b)	30,417		753,429
Network Equipment Technologies, Inc.(a)	30,738		338,118
Symmetricom, Inc.(a)	57,627		419,525
Tollgrade Communications, Inc.(a)	17,835		312,648
ViaSat, Inc.(a)	34,631		662,837

			6,776,476

Textiles — 0.7%
Angelica Corp.	11,657		256,454
Ashworth, Inc.(a)	17,202		138,820
G & K Services, Inc. (Class “A” Stock)	27,377		1,006,105
Haggar Corp.	8,490		165,640
Kellwood Co.	35,271		1,446,111
Oshkosh B’Gosh, Inc. (Class “A” Stock)	15,622		335,248
Oxford Industries, Inc.	21,338		722,931

			4,071,309

Timber — 0.1%
Deltic Timber Corp.	15,829		481,202

Transportation — 0.4%
Kansas City Southern(a)	81,827		1,171,763
Pegasus Systems, Inc.(a)	32,945		344,934
USF Corp.(b)	36,164		1,236,447

			2,753,144

Trucking/Shipping — 2.1%
Arkansas Best Corp.(b)	32,744		1,027,834
Forward Air Corp.(a)	28,300		778,250
Heartland Express, Inc.	66,007		1,596,709
Kirby Corp.(a)	31,980		1,115,462
Knight Transportation, Inc.(a)	49,414		1,267,469
Landstar Systems, Inc.(a)	39,374		1,497,787
Monaco Coach Corp.(a)	38,386		913,587
Oshkosh Truck Corp.	46,160		2,355,545
Yellow Roadway Corp.(a)(b)	65,536		2,370,427

			12,923,070

Utility – Electric — 1.1%
Atmos Energy Corp.(b)	66,407		1,613,690
Avista Corp.	63,680		1,153,882
Central Vermont Public Service Corp.	15,729		369,631
CH Energy Group, Inc.	20,826		976,739
Cleco Corp.	62,315		1,120,424
El Paso Electric Co.(a)	63,466		847,271
Green Mountain Power Corp.	6,581		155,312
UIL Holdings Corp.	19,139		863,169

			7,100,118

SEE NOTES TO FINANCIAL STATEMENTS.

B68




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares		Value (Note 2)
Utility & Water — 0.1%
American States Water Co.		20,002	$	500,050

TOTAL LONG-TERM INVESTMENTS (cost $495,542,322)				609,026,118


SHORT-TERM INVESTMENTS — 21.9%	Principal Amount (000)
U.S. Government Agency Obligation — 0.1%
United States Treasury Bill(d)(e) 0.87%, 3/18/04	$	700		698,694


SHORT-TERM INVESTMENTS (Continued)	Shares	Value (Note 2)
Mutual Fund — 21.8%
Dryden Core Investment Fund —Taxable Money Market Series (cost $134,967,303; Note 4)(c)	134,967,302	$	134,967,302

TOTAL SHORT-TERM INVESTMENTS (cost $135,665,996)			135,665,996

TOTAL INVESTMENTS — 120.1% (cost $631,208,318; Note 6)			744,692,114
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(f)			(59,200	)
LIABILITIES IN EXCESS OF OTHER ASSETS — (20.1)%			(124,734,171	)

NET ASSETS — 100%		$	619,898,743

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $119,273,266; cash collateral $125,065,395 was received with which the Portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Rate quoted represents yield-to-maturity as of purchase date.

(f)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
37	S&P MidCap 400 Index	Mar 04	$	10,512,450	$	10,656,925	$	144,475

SEE NOTES TO FINANCIAL STATEMENTS.

B69




		*SP AGGRESSIVE GROWTH ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	318,241	$	5,289,171
SP Alliance Large Cap Growth Portfolio	849,537		5,292,618
SP Davis Value Portfolio	1,077,314		10,557,677
SP Deutsche International Equity Portfolio	1,198,558		9,192,940
SP Jennison International Growth Portfolio (Class I)	1,553,280		9,148,818
SP Prudential U.S. Emerging Growth Portfolio (Class I)	1,589,353		10,569,199
SP Small/Mid Cap Value Portfolio	818,444		10,541,559

TOTAL INVESTMENTS — 100.0% (cost $52,803,227; Note 6)			60,591,982
LIABILITIES IN EXCESS OF OTHER ASSETS			(3,221	)

NET ASSETS — 100.0%		$	60,588,761

SEE NOTES TO FINANCIAL STATEMENTS.

B70




		*SP AIM AGGRESSIVE GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 96.6% COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.6%
Lamar Advertising Co.(a)	3,700	$	138,084

Auto Parts & Equipment — 1.2%
CarMax, Inc.(a)	3,700		114,441
Lear Corp.	1,900		116,527
Pep Boys — Manny, Moe & Jack	1,900		43,453

			274,421

Banks and Savings & Loans — 1.1%
New York Community Bancorp, Inc.	3,700		140,785
Southwest Bancorp of Texas, Inc.	2,790		108,392

			249,177

Chemicals — 1.3%
Valspar Corp. (The)	3,300		163,086
Waters Corp.(a)	3,500		116,060

			279,146

Commercial Services — 9.5%
Alliance Data Systems Corp.(a)	11,200		310,016
Arbitron, Inc.(a)	1,900		79,268
CheckFree Corp.(a)	4,700		129,955
Corporate Executive Board Co. (The)(a)	3,900		182,013
CoStar Group, Inc.(a)	2,300		95,864
Fair Isaac Corp.	1,000		49,160
Fiserv, Inc.(a)	12,200		482,022
Iron Mountain, Inc.(a)	3,650		144,321
Jacobs Engineering Group, Inc.(a)	5,900		283,259
Moore Wallace, Inc. (Canada)(a)	7,000		131,110
Paychex, Inc.	6,160		229,152

			2,116,140

Computer Services — 4.5%
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	4,700		255,962
CACI International, Inc. (Class “A” Stock)(a)	4,200		204,204
DST Systems, Inc.(a)	1,900		79,344
Electronics for Imaging, Inc.(a)	3,700		96,274
National Instruments Corp.	2,300		104,581
SunGuard Data Systems, Inc.(a)	9,340		258,812

			999,177

Distribution/Wholesale — 4.0%
CDW Corp.	7,450		430,312
Fastenal Co.	9,360		467,438

			897,750

Drugs & Medical Supplies — 13.2%
Biomet, Inc.	4,700		171,127
Cooper Cos., Inc.	3,500		164,955
Fisher Scientific International, Inc.(a)	7,000		289,590
Invitrogen Corp.(a)	2,100		147,000
Medicis Pharmaceutical Corp.	4,720		336,536
Omnicare, Inc.	9,400		379,666
Patterson Dental Co.(a)	2,000		128,320
ResMed, Inc.(a)	9,800		407,092
St. Jude Medical, Inc.(a)	3,700		226,995
Taro Pharmaceutical Industries Ltd.(a)	1,900		122,550
Varian Medical Systems, Inc.(a)	2,860		197,626


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
Zimmer Holdings, Inc.(a)	5,600	$	394,240

			2,965,697

Education — 1.9%
Apollo Group, Inc. (Class “A” Stock)(a)	4,705		319,940
University of Phoenix Online(a)	1,600		110,288

			430,228

Electronics — 3.7%
Gentex Corp.	8,700		384,192
Harman International Industries, Inc.	1,900		140,562
L-3 Communications Holdings, Inc.(a)	1,200		61,632
Microchip Technology, Inc.	5,655		188,651
Polycom, Inc.(a)	2,400		46,848

			821,885

Financial Services — 9.6%
Bear, Stearns & Cos., Inc.	1,400		111,930
Chicago Mercantile Exchange	2,300		166,428
Doral Financial Corp.	2,800		90,384
Investors Financial Services Corp.	11,760		451,701
Legg Mason, Inc.	3,870		298,687
Lehman Brothers Holdings, Inc.	5,200		401,544
Moody’s Corp.	3,300		199,815
Radian Group, Inc.	1,900		92,625
T. Rowe Price Group, Inc.	5,600		265,496
TCF Financial Corp.	1,200		61,620

			2,140,230

Hospitals/Healthcare Management — 2.8%
Caremark Rx, Inc.(a)	9,400		238,102
Express Scripts, Inc.(a)	2,370		157,439
Health Management Associates, Inc.	9,360		224,640

			620,181

Human Resources — 1.2%
Robert Half International, Inc.(a)	11,200		261,408

Insurance — 0.4%
HCC Insurance Holdings, Inc.	2,770		88,086

Internet Content — 3.6%
Avocent Corp.(a)	5,600		204,512
eBay, Inc.(a)	1,900		122,721
Getty Images, Inc.(a)	5,200		260,676
Symantec Corp.(a)	3,500		121,275
United Online, Inc.(a)	6,100		102,419

			811,603

Machinery — 1.3%
AGCO Corp.(a)	5,600		112,784
Rockwell Automation, Inc.	4,700		167,320

			280,104

Manufacturing — 3.8%
Danaher Corp.	5,650		518,388
Eaton Corp.	1,400		151,172
Marvel Enterprises, Inc.(a)	6,200		180,482

			850,042

Media — 2.6%
Belo Corp. (Class “A” Stock)	5,200		147,368

SEE NOTES TO FINANCIAL STATEMENTS.

B71




		*SP AIM AGGRESSIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Media (cont’d.)
Entercom Communications Corp.(a)	1,900	$	100,624
Univision Communications, Inc. (Class “A” Stock)(a)	4,702		186,622
Westwood One, Inc.(a)	4,600		157,366

			591,980

Oil & Gas Exploration & Production — 4.7%
Cooper Cameron Corp.(a)	4,200		195,720
ENSCO International, Inc.	9,400		255,398
Nabors Industries Ltd.(a)	6,600		273,900
Newfield Exploration Co.(a)	3,990		177,715
XTO Energy, Inc.	5,600		158,480

			1,061,213

Oil & Gas Services — 2.8%
National-Oilwell, Inc.(a)	7,020		156,967
Patterson-UTI Energy, Inc.(a)	9,360		308,131
Smith International, Inc.(a)	4,000		166,080

			631,178

Restaurants — 1.5%
Cheesecake Factory, Inc. (The)(a)	1,870		82,336
Sonic Corp.(a)	3,090		94,616
Starbucks Corp.(a)	4,670		154,390

			331,342

Retail — 9.3%
Aeropostale, Inc.(a)	2,800		76,776
Bed Bath & Beyond, Inc.(a)	6,990		303,016
Best Buy Co., Inc.	6,600		344,784
Chico’s FAS, Inc.(a)	2,300		84,985
Fred’s, Inc.	3,700		114,626
Men’s Wearhouse, Inc. (The)(a)	4,700		117,547
Pacific Sunwear of California, Inc.(a)	3,450		72,864
Regis Corp.	2,800		110,656
Staples, Inc.(a)	12,200		333,060
Tractor Supply Co.(a)	6,600		256,674
Williams-Sonoma, Inc.(a)	7,980		277,465

			2,092,453

Semiconductors & Semiconductor Equipment — 4.4%
Altera Corp.(a)	8,400		190,680
AMIS Holdings, Inc.(a)	6,100		111,508
Broadcom Corp.(a)	3,300		112,497
Intersil Corp. (Class “A” Stock)	4,700		116,795
Linear Technology Corp.	5,600		235,592
Marvell Technology Group, Ltd.(a)	2,900		109,997
QLogic Corp.(a)	2,100		108,360

			985,429


COMMON STOCKS (Continued)	Shares		Value (Note 2)
Software — 2.7%
Adobe Systems, Inc.		2,800	$	110,040
Cognos, Inc.(a)		5,200		159,224
Electronic Arts, Inc.(a)		2,300		109,894
Mercury Interactive Corp.(a)		2,300		111,872
PeopleSoft, Inc.(a)		5,400		123,120

				614,150

Telecommunications — 3.0%
Comverse Technology, Inc.(a)		12,900		226,911
Plantronics, Inc.(a)		4,700		153,455
UTStarcom, Inc.(a)		7,970		295,448

				675,814

Trucking & Shipping — 1.9%
C.H. Robinson Worldwide, Inc.		4,700		178,177
Expeditors International of Washington, Inc.		4,640		174,742
Sirva, Inc.(a)		3,900		76,206

				429,125

TOTAL LONG-TERM INVESTMENTS (cost $18,383,644)				21,636,043

SHORT-TERM INVESTMENT — 9.0%	Principal Amount (000)
Repurchase Agreement
State Street Bank & Trust Co., 0.85%, 1/2/04(b) (cost $2,000,477)	$	2,000		2,000,477

TOTAL INVESTMENTS — 105.6% (cost $20,384,121; Note 6)				23,636,520
LIABILITIES IN EXCESS OF OTHER ASSETS — (5.6)%				(1,246,933	)

NET ASSETS — 100%			$	22,389,587

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, Repurchase price $2,000,572 due 1/2/04. The value of the collateral including accrued interest was $2,041,273. Collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B72




		*SP AIM CORE EQUITY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 91.5% COMMON STOCKS	Shares	Value (Note 2)
Advertising — 1.2%
Omnicom Group, Inc.	3,100	$	270,723

Aerospace — 2.3%
Lockheed Martin Corp.	3,300		169,620
Northrop Grumman Corp.	3,700		353,720

			523,340

Apparel — 1.1%
Nike, Inc. (Class “B” Stock)	3,600		246,456

Banks and Savings & Loans — 1.2%
Bank of America Corp.	3,500		281,505

Building & Construction — 2.3%
American Standard Cos., Inc.(a)	3,000		302,100
Masco Corp.	7,800		213,798

			515,898

Chemicals — 1.0%
Dow Chemical Co.	5,700		236,949

Commercial Services — 1.6%
Automatic Data Processing, Inc.	9,000		356,490

Computers — 1.4%
International Business Machines Corp.	3,400		315,112

Computer Services — 1.1%
First Data Corp.	6,200		254,758

Computer Software & Services — 6.4%
Computer Associates International, Inc.	22,700		620,618
Microsoft Corp.	17,200		473,688
Oracle Corp.(a)	13,100		172,920
SAP AG, ADR (Germany)	4,700		195,332

			1,462,558

Cosmetics & Soaps — 2.4%
Gillette Co.	7,500		275,475
Kimberly-Clark Corp.	4,500		265,905

			541,380

Diversified Manufacturing Operations — 3.3%
Illinois Tool Works, Inc.	4,600		385,986
Tyco International, Ltd. (Bermuda)	14,000		371,000

			756,986

Drugs & Medical Supplies — 13.3%
Abbott Laboratories	5,300		246,980
Alcon, Inc.	5,800		351,132
Bristol-Myers Squibb Co.	9,700		277,420
HCA, Inc.	6,200		266,352
Johnson & Johnson	6,800		351,288
Merck & Co., Inc.	7,400		341,880
Pfizer, Inc.	17,300		611,209
Teva Pharmaceutical Industries, Ltd., ADR (Israel)	3,900		221,169
Wyeth	8,500		360,825

			3,028,255

Electronics — 3.5%
Emerson Electric Co.	5,800		375,550
Intel Corp.	13,000		418,600

			794,150


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Financial Services — 5.1%
Citigroup, Inc.	9,000	$	436,860
Morgan Stanley	5,500		318,285
Washington Mutual, Inc.	10,300		413,236

			1,168,381

Food & Beverage — 13.5%
Campbell Soup Co.	13,400		359,120
Coca-Cola Co.	5,200		263,900
ConAgra Foods, Inc.	8,900		234,871
General Mills, Inc.	12,800		579,840
Kellogg Co.	11,700		445,536
Kraft Foods, Inc. (Class “A” Stock)	10,700		344,754
Kroger Co.(a)	22,300		412,773
Sara Lee Corp.	20,300		440,713

			3,081,507

Household Products — 1.3%
Newell Rubbermaid, Inc.	13,300		302,841

Insurance — 4.3%
ACE, Ltd. (Cayman Islands)	6,800		281,656
Principal Financial Group, Inc.	8,100		267,867
Travelers Property Casualty Corp. (Class “A” Stock)	5,698		95,612
Travelers Property Casualty Corp. (Class “B” Stock)	7,008		118,926
XL Capital, Ltd. (Class “A” Stock)	2,700		209,385

			973,446

Leisure — 1.4%
Carnival Corp.	8,200		325,786

Machinery — 1.8%
Dover Corp.	10,400		413,400

Media — 2.4%
Gannett Co., Inc.	3,000		267,480
The New York Times Co. (Class “A” Stock)	5,600		267,624

			535,104

Oil & Gas Services — 8.6%
Baker Hughes, Inc.	8,000		257,280
BP PLC, ADR (United Kingdom)	5,300		261,555
ChevronTexaco Corp.	3,500		302,365
ConocoPhillips	4,100		268,837
Exxon Mobil Corp.	8,200		336,200
GlobalSantaFe Corp.	10,000		248,300
Occidental Petroleum Corp.	7,000		295,680

			1,970,217

Railroads — 1.9%
Norfolk Southern Corp.	8,900		210,485
Union Pacific Corp.	3,300		229,284

			439,769

Retail — 3.7%
Safeway, Inc.(a)	12,000		262,920
The Limited, Inc.	22,300		402,069
Wal-Mart Stores, Inc.	3,300		175,065

			840,054

SEE NOTES TO FINANCIAL STATEMENTS.

B73




		*SP AIM CORE EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductors — 2.7%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan)(a)	18,760	$	192,103
Xilinx, Inc.(a)	11,100		430,014

			622,117

Utility – Electric — 1.4%
FPL Group, Inc.	2,900		189,718
TXU Corp.	5,700		135,204

			324,922

Waste Management — 1.3%
Waste Management, Inc.	9,600		284,160

TOTAL LONG-TERM INVESTMENTS (cost $18,688,922)			20,866,264


SHORT-TERM INVESTMENT — 12.2%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co., 0.85%, 1/2/04(b) (cost $2,786,836)	$	2,787	$	2,786,836

TOTAL INVESTMENTS — 103.7% (cost $21,475,758; Note 6)				23,653,100

LIABILITIES IN EXCESS OF OTHER ASSETS — (3.7)%				(852,541	)

NET ASSETS — 100%			$	22,800,559

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $2,786,968 due 1/02/04. The value of the collateral including accrued interest was $2,845,715, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B74




		*SP ALLIANCE LARGE CAP GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 99.2% COMMON STOCKS	Shares	Value (Note 2)
Computers — 3.4%
Dell, Inc.(a)	148,200	$	5,032,872

Computer Software & Services — 13.3%
Cisco Systems, Inc.(a)	207,900		5,049,891
Electronic Arts, Inc.(a)	46,900		2,240,882
EMC Corp.(a)	139,800		1,806,216
Microsoft Corp.	306,400		8,438,256
VERITAS Software Corp.(a)	53,400		1,984,344

			19,519,589

Cosmetics & Soaps — 3.0%
Avon Products, Inc.	29,800		2,011,202
Colgate-Palmolive Co.	9,500		475,475
Procter & Gamble Co.	19,700		1,967,636

			4,454,313

Diversified Operations — 4.3%
General Electric Co.	201,900		6,254,862

Drugs & Medical Supplies — 12.4%
Alcon, Inc. (Switzerland)	13,300		805,182
Amgen, Inc.(a)	59,100		3,652,380
Boston Scientific Corp.(a)	38,400		1,411,584
Forest Laboratories, Inc.(a)	7,000		432,600
Gilead Sciences, Inc.(a)	15,800		918,612
Medtronic, Inc.	77,900		3,786,719
Pfizer, Inc.	187,500		6,624,375
Zimmer Holdings, Inc.(a)	8,600		605,440

			18,236,892

Electronics — 11.7%
Applied Materials, Inc.(a)	114,700		2,575,015
Broadcom Corp. (Class “A” Stock)(a)	32,200		1,097,698
Intel Corp.	212,900		6,855,380
Marvell Technology Group Ltd. (Bermuda)(a)	36,100		1,369,273
Maxim Integrated Products, Inc.	43,700		2,176,260
Taiwan Semiconductor Manufacturing Co Ltd., ADR (Taiwan)(a)	206,136		2,110,832
Texas Instruments, Inc.	32,700		960,726

			17,145,184

Financial Services — 15.6%
Bank One Corp.	14,100		642,819
Citigroup, Inc.	133,200		6,465,528
Fannie Mae	29,800		2,236,788
Franklin Resources, Inc.	7,300		380,038
Goldman Sachs Group, Inc.	7,900		779,967
J. P. Morgan Chase & Co.	17,800		653,794
Lehman Brothers Holdings, Inc.	19,500		1,505,790
MBNA Corp.	176,900		4,395,965
Merrill Lynch & Co., Inc.	47,500		2,785,875
Morgan Stanley	51,800		2,997,666

			22,844,230

Health Care Services — 2.5%
UnitedHealth Group, Inc.	61,800		3,595,524

Insurance — 6.8%
ACE, Ltd.	30,700		1,271,594
American International Group, Inc.	87,900		5,826,012


COMMON STOCKS (Continued)	Shares		Value (Note 2)
Insurance (cont’d.)
Progressive Corp.		34,500	$	2,883,855

				9,981,461

Internet — 4.8%
eBay, Inc.(a)		44,600		2,880,714
Symantec Corp.(a)		33,600		1,164,240
Yahoo!, Inc.(a)		64,700		2,922,499

				6,967,453

Media — 7.5%
Clear Channel Communications, Inc.		43,500		2,037,105
E.W. Scripps Co. (Class “A” Stock)		9,600		903,744
Liberty Media Corp. (Class “A” Stock)(a)		67,000		796,630
Time Warner, Inc.(a)		80,600		1,449,994
Viacom, Inc. (Class “B” Stock)		129,900		5,764,962

				10,952,435

Retail — 10.8%
Bed Bath & Beyond, Inc.(a)		27,600		1,196,460
Family Dollar Stores, Inc.		11,900		426,972
Kohl’s Corp.(a)		25,600		1,150,464
Lowe’s Cos., Inc.		71,600		3,965,924
Target Corp.		52,300		2,008,320
Wal-Mart Stores, Inc.		100,400		5,326,220
Walgreen Co.		46,100		1,677,118

				15,751,478

Telecommunications — 3.1%
Comcast Corp. (Special Class “A” Stock)(a)		96,900		3,031,032
Nokia Oyj, ADR (Finland)		88,880		1,510,960

				4,541,992

TOTAL LONG-TERM INVESTMENTS (cost $ 130,881,835)				145,278,285


SHORT-TERM INVESTMENT — 2.8%	Principal Amount (000)
Repurchase Agreement
State Street Bank & Trust Co., 0.50%, 1/2/04(b) (cost $4,069,926)	$	4,070		4,069,926

TOTAL INVESTMENTS — 102.0% (cost $ 134,951,761; Note 6)				149,348,211
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.0)%				(2,878,462	)

NET ASSETS — 100%			$	146,469,749

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-Income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $4,070,039 due 1/02/04. The value of the collateral including accrued interest was $4,152,934, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B75




		*SP ALLIANCE TECHNOLOGY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.1% COMMON STOCKS — 96.4%	Shares	Value (Note 2)
Broadcast & Cable — 3.8%
Comcast Corp. (Class “A” Stock)(a)	7,874	$	258,818
News Corp. Ltd. ADR (Australia)	6,700		202,675
Viacom, Inc. (Class “B” Stock)	6,750		299,565

			761,058

Communications Equipment — 15.8%
Alcatel SA (France)(a)	32,700		421,123
Cisco Systems, Inc.(a)	35,800		869,582
Corning, Inc.(a)	19,100		199,213
Juniper Networks, Inc.(a)	26,400		493,152
Motorola, Inc.	14,100		198,387
Nokia Oyj, ADR (Finland)	24,800		421,600
QUALCOMM, Inc.	10,450		563,569

			3,166,626

Computer Hardware — 9.0%
Agilent Technologies, Inc.(a)	12,000		350,880
Dell, Inc.(a)	22,700		770,892
EMC Corp.(a)	15,868		205,014
Lexmark International, Inc.(a)	2,800		220,192
Network Appliance, Inc.(a)	3,600		73,908
Seagate Technology(a)	9,800		185,220

			1,806,106

Computer Services — 5.3%
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	4,150		226,009
Computer Sciences Corp.(a)	5,875		259,851
First Data Corp.	5,650		232,159
Fiserv, Inc.(a)	8,830		348,873

			1,066,892

Contract Manufacturing — 4.3%
Flextronics International Ltd. (Singapore)(a)	23,100		342,804
Sanmina-SCI Corp.(a)	40,500		510,705

			853,509

Internet Content — 5.5%
eBay, Inc.(a)	10,100		652,359
Yahoo!, Inc.(a)	9,700		438,149

			1,090,508

Semiconductor Components — 23.0%
Agere Systems, Inc. (Class “A” Stock)(a)	58,200		177,510
Altera Corp.(a)	13,490		306,223
Broadcom Corp. (Class “A” Stock)(a)	9,700		330,673
Fairchild Semiconductor International, Inc.(a)	8,600		214,742
Intel Corp.	35,750		1,151,150
Linear Technology Corp.	7,500		315,525
Marvell Technology Group Ltd. (Bermuda)(a)	7,500		284,475


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductor Components (cont’d.)
Maxim Integrated Products, Inc.	6,000	$	298,800
Samsung Electronics Co. Ltd. GDR (South Korea)	2,489		467,932
SanDisk Corp.(a)	3,300		201,762
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan)(a)	24,418		250,040
Texas Instruments, Inc.	6,700		196,846
United Microelectronics Corp. ADR (Taiwan)(a)	37,000		183,150
Vishay Intertechnology, Inc.(a)	9,800		224,420

			4,603,248

Semiconductor Equipment — 6.9%
Applied Materials, Inc.(a)	20,100		451,245
ASML Holding NV (Netherlands)(a)	10,300		206,515
KEMET Corp.(a)	4,200		57,498
KLA-Tencor Corp.(a)	5,150		302,150
Lam Research Corp.(a)	5,600		180,880
Nitto Denko Corp. (Japan)(a)	3,500		186,153

			1,384,441

Software — 20.5%
BMC Software, Inc.(a)	5,700		106,305
Cognos, Inc.(a)	5,700		174,534
Electronic Arts, Inc.(a)	6,950		332,071
Infosys Technologies Ltd. ADR (India)	2,500		239,250
Intuit, Inc.(a)	4,400		232,804
Macrovision Corp.(a)	10,250		231,548
Mercury Interactive Corp.(a)	8,050		391,552
Microsoft Corp.	31,500		867,510
Oracle Corp.(a)	31,100		410,520
SAP AG, ADR (Germany)	9,500		394,820
Symantec Corp.(a)	9,000		311,850
VERITAS Software Corp.(a)	10,900		405,044

			4,097,808

Telecommunications – Wireless — 2.3%
Vodafone Group PLC ADR (United Kingdom)	18,350		459,485

TOTAL COMMON STOCKS (cost $16,469,587)			19,289,681

EQUITY CERTIFICATES(a) — 1.7%	Units
Asustek Deutsche Bank Axess, expiring 4/18/05	42,000		103,488
Asustek Deutsche Bank London, expiring 8/22/05	10,800		23,706
Hon Hai Citigroup, expiring 1/17/07	55,678		219,093

TOTAL EQUITY CERTIFICATES (cost $320,284)			346,287

TOTAL LONG-TERM INVESTMENTS (cost $16,789,871)			19,635,968

SEE NOTES TO FINANCIAL STATEMENTS.

B76




		*SP ALLIANCE TECHNOLOGY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


SHORT-TERM INVESTMENT — 4.0%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. Repurchase Agreement, 0.50%, 1/2/04(b) (cost $801,812)	$	802	$	801,812

TOTAL INVESTMENTS — 102.1% (cost $17,591,683; Note 6)				20,437,780
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.1)%				(422,806	)

NET ASSETS — 100%			$	20,014,974

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $801,834 due 1/2/04. The value of the collateral including accrued interest was $819,068, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B77




		*SP BALANCED ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	2,385,809	$	39,652,148
SP Alliance Large Cap Growth Portfolio	6,368,466		39,675,545
SP Davis Value Portfolio	8,076,573		79,150,412
SP Deutsche International Equity Portfolio	2,995,305		22,973,993
SP Jennison International Growth Portfolio (Class I)	3,880,757		22,857,656
SP PIMCO High Yield Portfolio	4,243,373		44,682,721
SP PIMCO Total Return Portfolio	11,535,820		133,123,365
SP Prudential U.S. Emerging Growth Portfolio (Class I)	5,106,750		33,959,886
SP Small/Mid Cap Value Portfolio	2,629,869		33,872,714

TOTAL INVESTMENTS — 100.0% (cost $408,622,120; Note 6)			449,948,440
OTHER ASSETS IN EXCESS OF LIABILITIES			7,473

NET ASSETS — 100.0%		$	449,955,913

SEE NOTES TO FINANCIAL STATEMENTS.

B78




		*SP CONSERVATIVE ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	1,285,970	$	21,372,823
SP Alliance Large Cap Growth Portfolio	3,432,704		21,385,745
SP Davis Value Portfolio	4,353,544		42,664,734
SP PIMCO High Yield Portfolio	2,668,539		28,099,720
SP PIMCO Total Return Portfolio	13,299,869		153,480,484
SP Prudential U.S. Emerging Growth Portfolio (Class I)	1,070,432		7,118,375
SP Small/Mid Cap Value Portfolio	551,260		7,100,235

TOTAL INVESTMENTS — 100.0% (cost $261,465,311; Note 6)			281,222,116
LIABILITIES IN EXCESS OF OTHER ASSETS			(12,511	)

NET ASSETS — 100.0%		$	281,209,605

SEE NOTES TO FINANCIAL STATEMENTS.

B79




		*SP DAVIS VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 91.1% COMMON STOCKS	Shares	Value (Note 2)
Banks — 8.7%
Fifth Third Bancorp	86,400	$	5,106,240
Golden West Financial Corp.	106,900		11,031,011
HSBC Holdings PLC (United Kingdom)	903,143		14,195,176
Lloyds TSB Group PLC, ADR (United Kingdom)	107,200		3,489,360

			33,821,787

Beverages — 0.5%
Heineken Holding NV (Class “A” Stock) (Netherlands)	50,800		1,738,398

Business Services — 0.8%
D&B Corp.(a)	62,600		3,174,446

Construction & Housing — 1.5%
Martin Marietta Materials, Inc.	63,900		3,001,383
Vulcan Materials Co.	63,200		3,006,424

			6,007,807

Containers & Packaging — 3.5%
Sealed Air Corp.(a)	254,600		13,784,044

Diversified Consumer Products — 1.9%
Lexmark International, Inc.(a)	94,400		7,423,616

Diversified Manufacturing — 3.3%
Tyco International Ltd.	490,152		12,989,028

Drugs & Medical Supplies — 3.3%
Eli Lilly & Co.	81,800		5,752,994
Merck & Co., Inc.	29,000		1,339,800
Novartis AG (Switzerland)	44,000		1,997,655
Pfizer, Inc.	106,320		3,756,286

			12,846,735

Electronics — 0.2%
Agere Systems, Inc. (Class “A” Stock)(a)	295,200		900,360

Financial Services — 18.1%
American Express Co.	601,600		29,015,168
Bank One Corp.	302,000		13,768,180
H&R Block, Inc.	83,300		4,612,321
Moody’s Corp.	76,900		4,656,295
Providian Financial Corp.(a)	25,000		291,000
State Street Corp.	23,000		1,197,840
Takefuji Corp. (Japan)	45,920		2,146,675
Wells Fargo & Co.	252,700		14,881,503

			70,568,982

Foods — 3.0%
Diageo PLC, ADR (United Kingdom)	116,600		6,163,476
Hershey Foods Corp.	45,600		3,510,744
Kraft Foods, Inc. (Class “A” Stock)	67,400		2,171,628

			11,845,848

Healthcare Providers & Services — 1.0%
HCA, Inc.	89,900		3,862,104


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Insurance — 18.3%
American International Group, Inc.	336,000	$	22,270,080
Aon Corp.	144,500		3,459,330
Berkshire Hathaway, Inc. (Class “A” Stock)(a)	178		14,996,500
Chubb Corp.	19,600		1,334,760
Loews Corp.	127,100		6,285,095
Markel Corp.(a)	1,500		380,265
Principal Financial Group, Inc.	44,800		1,481,536
Progressive Corp.	169,400		14,160,146
Sun Life Financial Services of Canada	27,300		683,046
Transatlantic Holdings, Inc.	79,900		6,455,920

			71,506,678

Investment Firms — 5.1%
Citigroup, Inc.	308,600		14,979,444
Janus Capital Group, Inc.	53,800		882,858
Morgan Stanley	71,400		4,131,918

			19,994,220

Media — 2.3%
Gannett Co., Inc.	29,300		2,612,388
Lagardere SA (France)	85,600		4,941,861
WPP Group ADR (United Kingdom)	30,300		1,489,245

			9,043,494

Oil & Gas — 6.1%
ConocoPhillips	137,920		9,043,414
Devon Energy Corp.	127,400		7,294,924
EOG Resources, Inc.	89,800		4,146,066
Occidental Petroleum Corp.	80,100		3,383,424

			23,867,828

Real Estate — 0.8%
Marriott International, Inc. (Class “A” Stock)	68,300		3,155,460

Real Estate Investment Trust — 1.5%
CenterPoint Properties Trust	79,600		5,962,040

Retail — 3.6%
AutoZone, Inc.(a)	23,000		1,959,830
Costco Wholesale Corp.(a)	327,900		12,191,322

			14,151,152

Software — 0.9%
Microsoft Corp.	129,000		3,552,660

Tobacco — 5.8%
Altria Group, Inc.	413,700		22,513,554

Transportation/Shipping — 0.9%
United Parcel Service, Inc. (Class “B” Stock)	49,100		3,660,405

TOTAL LONG-TERM INVESTMENTS (cost $304,346,525)			356,370,646

SEE NOTES TO FINANCIAL STATEMENTS.

B80




		*SP DAVIS VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


SHORT-TERM INVESTMENT — 9.1%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. Repurchase Agreement, 0.92%, 1/2/04(b) (cost $35,731,000)	$	35,731	$	35,731,000

TOTAL INVESTMENTS — 100.2% (cost $340,077,525; Note 6)				392,101,646

LIABILITIES IN EXCESS OF OTHER ASSETS — (0.2)%				(905,176	)

NET ASSETS — 100%			$	391,196,470

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non- Income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $35,732,826 due 1/2/04. The value of the collateral including accrued interest was $36,805,919, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B81




		*SP DEUTSCHE INTERNATIONAL EQUITY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.1% COMMON STOCKS — 93.0%	Shares	Value (Note2)
Australia — 0.9%
Australia & New Zealand Banking Group, Ltd.	43,491	$	579,339
Westpac Banking Corp.	40,875		492,448

			1,071,787

Brazil — 1.0%
Companhia Vale do Rio Doce, ADR	19,900		1,164,150

China — 0.3%
China Life Insurance Co., Ltd., ADR(a)	11,890		392,013

Czech Republic — 0.3%
Cesky Telecom A/S, GDR	37,870		426,037

Denmark — 0.9%
A P Moller – Maersk A/S	155		1,118,555

Finland — 1.2%
Nokia Oyj, ADR	50,383		871,279
Stora Enso Oyj (Series “R” Shares)	41,700		561,750

			1,433,029

France — 6.9%
Compagnie de Saint-Gobain	15,334		750,646
Credit Agricole SA	48,745		1,163,902
Dassault Systemes SA(a)	13,343		608,580
Schneider Electric SA	11,793		772,018
Total SA	21,882		4,068,369
Vivendi Universal SA(a)	38,100		926,067

			8,289,582

Republic of Germany — 10.6%
Allianz AG	15,800		1,994,528
Altana AG(a)	9,785		588,111
BASF AG	15,659		880,521
Bayerische Motoren Werke (BMW) AG(a)	9,746		451,772
Deutsche Telekom AG(a)	94,410		1,727,910
E.On AG	29,787		1,943,968
Metro AG(a)	19,544		861,582
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe)	13,657		1,655,789
SAP AG	3,409		572,538
Siemens AG	24,993		2,001,833

			12,678,552

Greece — 1.2%
Alpha Bank AE	27,085		818,562
Public Power Corp. (PPC)	24,200		598,284

			1,416,846

Hong Kong — 1.3%
BOC Hong Kong (Holdings), Ltd.	342,000		643,143
Sun Hung Kai Properties, Ltd.	108,000		890,291

			1,533,434

Hungary — 0.5%
OTP Bank Rt.	52,592		678,266

Ireland — 0.3%
Bank of Ireland	24,204		329,721

Italy — 2.0%
ENI SpA(a)	98,044		1,850,071


COMMON STOCKS (Continued)	Shares	Value (Note2)
Italy (cont’d.)
UniCredito Italiano SpA	103,175	$	556,999

			2,407,070

Japan — 19.2%
Bridgestone Corp.	57,000		766,418
Canon, Inc.	42,000		1,955,585
Dai Nippon Printing Co., Ltd.	51,000		716,198
Daikin Industries, Ltd.	19,000		438,789
Daiwa House Industry Co., Ltd.	30,000		319,119
Fanuc, Ltd.	13,000		778,763
Hoya Corp.	7,300		670,262
KDDI Corp.	112		641,672
Kirin Brewery Co., Ltd.	96,000		818,737
Matsushita Electric Industrial Co., Ltd.	65,000		898,852
Mitsubishi Corp.	118,000		1,250,798
Mitsui Fudosan Co., Ltd.	87,000		785,817
Mizuho Financial Group, Inc.	301		912,802
Murata Manufacturing Co., Ltd.	10,600		572,679
Nikko Cordial Corp.	45,000		250,676
Nippon Steel Corp.	322,000		691,052
Nissan Motor Co., Ltd.	140,000		1,598,955
Nomura Holdings, Inc.	91,000		1,549,641
Nomura Research Institute, Ltd.	2,800		273,024
NTT DoCoMo, Inc.	762		1,727,778
Ricoh Co., Ltd.	25,000		493,375
Sharp Corp.	41,000		646,925
Sony Corp.	13,000		450,033
Tokyo Gas Co., Ltd.	123,000		438,425
Toyota Motor Corp.	71,000		2,398,246
UFJ Holding, Inc.	209		1,004,339

			23,048,960

Korea — 2.7%
POSCO	3,170		433,663
Samsung Electronics Co., Ltd.	7,308		2,766,184

			3,199,847

Mexico — 0.6%
Grupo Financiero BBVA Bancomer SA de CV(GFB) (Series “B” Shares)(a)	406,500		347,274
Telefonos de Mexico SA de CV, ADR (Series “L” Shares)	10,800		356,724

			703,998

Netherlands — 4.6%
ING Groep NV	74,850		1,745,679
Koninklijke (Royal) Philips Electronics NV	54,480		1,590,830
Koninklijke Ahold NV(a)	141,375		1,077,074
Reed Elsevier NV	46,563		578,513
TNT Post Group NV	22,311		522,597

			5,514,693

Russia — 1.0%
Lukoil, ADR	6,200		577,220
YUKOS, ADR	13,900		583,800

			1,161,020

South Africa — 0.3%
Harmony Gold Mining Co., Ltd., ADR	22,900		371,667

SEE NOTES TO FINANCIAL STATEMENTS.

B82




		*SP DEUTSCHE INTERNATIONAL EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note2)
Spain — 0.6%
Banco Popular Espanol SA	12,159	$	725,429

Sweden — 0.8%
Telfonaktiebolaget LM Ericsson (Class “B” Shares)	519,962		932,207

Switzerland — 12.8%
ABB Ltd.	283,242		1,435,963
Credit Suisse Group	81,033		2,964,822
Nestle SA	9,929		2,480,745
Novartis AG	52,542		2,385,472
Roche Holding AG	18,894		1,905,823
Swiss Re	16,478		1,112,523
Syngenta AG	11,324		762,716
UBS AG	33,217		2,274,898

			15,322,962

Taiwan — 1.2%
Chunghwa Telecom Co., Ltd., ADR	24,520		355,540
Hon Hai Precision Industry Co., Ltd.	97,800		384,574
MediaTek, Inc.	23,000		216,112
Mega Financial Holding Co., Ltd.	937,000		563,028

			1,519,254

United Kingdom — 21.8%
Anglo American PLC	39,439		852,163
AstraZeneca PLC	51,786		2,484,488
BAA PLC	47,353		420,666
BHP Billiton PLC	176,538		1,542,225
British Sky Broadcasting Group PLC(a)	58,422		735,227
Compass Group PLC	52,750		358,836
Daily Mail and General Trust (Class “A” Shares)	37,000		436,493
GlaxoSmithKline PLC	66,808		1,530,834
Granada Compass PLC	426,550		931,579
HBOS PLC	62,800		813,370
HSBC Holdings PLC	172,527		2,711,698
Kingfisher PLC	139,906		697,511
Lloyds TSB Group PLC	98,478		789,782
National Grid Group PLC	136,272		976,400


COMMON STOCKS (Continued)	Shares	Value (Note2)
United Kingdom (cont’d.)
Royal Bank of Scotland Group PLC	73,645	$	2,170,011
Scottish & Southern Energy PLC	73,113		880,845
Shell Transport & Trading Co.	409,443		3,045,469
Smith & Nephew PLC	161,756		1,358,797
Vodafone Group PLC	1,354,575		3,358,478

			26,094,872

TOTAL COMMON STOCKS (cost $93,114,552)			111,533,951

PREFERRED STOCK — 0.7%
Republic of Germany
Henkel KGaA (cost $693,021)	10,635		831,697

RIGHT — 1.4%	Units
Spain
Telefonica SA (cost $1,051,072)	111,271		1,633,694

TOTAL LONG-TERM INVESTMENTS (cost $94,858,645; Note 6)			113,999,342

SHORT-TERM INVESTMENT — 3.8%	Principal Amount (000)
Repurchase Agreement
State Street Bank & Trust Co., 0.50%, 1/02/04(b) (cost $4,560,155)	$4,560		4,560,155

TOTAL INVESTMENTS — 98.9% (cost $99,418,800; Note 6)			118,559,497
OTHER ASSETS IN EXCESS OF LIABILITIES — 1.1%			1,298,232

NET ASSETS — 100.0%		$	119,857,729

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt
GDR		Global Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $4,560,282 due 1/2/04. The value of the collateral including accrued interest was $4,653,306. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B83




		*SP DEUTSCHE INTERNATIONAL EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

The industry classification of portfolio holdings and other assets in excess of other liabilities shown as a percentage of net assets as of December 31, 2003 was as follows:


Banks	17.1	%
Telecommunications	9.7
Pharmaceuticals	8.6
Oil & Gas Services	8.3
Electrical	7.7
Automobiles & Manufacturing	5.8
Insurance	4.3
Metals & Minerals	4.2
Household Durables	4.0
Repurchase Agreement	3.8
Food & Beverage	3.7
Financial Services	3.0
Media	3.0
Semiconductor Equipment	3.0
Electronics	2.9
Chemicals	1.4
Real Estate	1.4
Retail	1.3
Software	1.0
Marine	0.9
Industrial	0.8
Commercial Services	0.6
Construction	0.6
Forest Products & Paper	0.5
Transportation	0.4
Machinery	0.4
IT Consulting & Services	0.3
Leisure	0.2

	98.9
Other assets in excess of liabilities	1.1

	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

B84




		*SP GROWTH ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	1,723,859	$	28,650,541
SP Alliance Large Cap Growth Portfolio	4,601,533		28,667,548
SP Davis Value Portfolio	5,835,597		57,188,846
SP Deutsche International Equity Portfolio	4,328,246		33,197,645
SP Jennison International Growth Portfolio (Class I)	5,607,953		33,030,845
SP PIMCO High Yield Portfolio	2,299,611		24,214,904
SP PIMCO Total Return Portfolio	3,473,304		40,081,930
SP Prudential U.S. Emerging Growth Portfolio (Class I)	6,149,852		40,896,513
SP Small/Mid Cap Value Portfolio	3,166,998		40,790,936

TOTAL INVESTMENTS — 100.0% (cost $288,586,598; Note 6)			326,719,708
LIABILITIES IN EXCESS OF OTHER ASSETS			(13,957	)

NET ASSETS — 100.0%		$	326,705,751

SEE NOTES TO FINANCIAL STATEMENTS.

B85




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 92.3%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.9%
Getty Images, Inc.(a)	5,900	$	295,767

Airlines — 0.7%
AirTran Holdings, Inc.(a)	20,300		241,570

Apparel — 2.8%
Aeropostale, Inc.(a)	12,800		350,976
Hot Topic, Inc.(a)	4,950		145,827
The Finish Line, Inc. (Class “A” Stock)(a)	6,300		188,811
The Men’s Wearhouse, Inc.(a)	11,800		295,118

			980,732

Banking — 6.3%
Dime Community Bancshares	5,400		166,104
Greater Bay Bancorp	9,200		262,016
Independence Community Bank Corp.	5,200		187,044
Investors Financial Services Corp.	9,100		349,531
PrivateBankcorp, Inc.	5,700		259,464
Silicon Valley Bancshares(a)	7,000		252,490
South Financial Group, Inc.	6,900		192,234
Southwest Bancorp of Texas, Inc.	7,800		303,030
Wintrust Financial Corp.	5,100		230,010

			2,201,923

Building & Construction — 0.5%
The Ryland Group, Inc.	2,100		186,144

Commercial Services — 0.4%
Providence Service Corp.(a)	8,600		139,148

Computer Software & Services — 12.3%
Agile Software Corp.(a)	18,300		181,170
Altiris, Inc.(a)	8,800		321,024
Anteon International Corp.(a)	9,400		338,870
Cognizant Technology Solutions Corp. (Class “A” Stock)(a)	4,400		200,816
Dendrite International, Inc.(a)	13,700		214,679
Dot Hill Systems Corp.(a)	12,700		192,405
F5 Networks, Inc.(a)	8,800		220,880
FileNET Corp.(a)	9,600		259,968
McDATA Corp. (Class “A” Stock)(a)	21,900		208,707
MicroStrategy, Inc. (Class “A” Stock)(a)	5,000		262,400
MSC. Software Corp.(a)	24,100		227,745
NetScreen Technologies, Inc.(a)	9,100		225,225
Openwave Systems, Inc.(a)	9,400		103,400
RSA Security, Inc.(a)	17,300		245,660
Secure Computing Corp.(a)	20,900		374,319
SRA International, Inc. (Class “A” Stock)(a)	4,300		185,330
SupportSoft, Inc.(a)	22,800		299,820
webMethods, Inc.(a)	28,400		259,860

			4,322,278

Consulting — 2.3%
Corporate Executive Board Co.(a)	5,900		275,353
LECG Corp.(a)	13,500		309,015
MAXIMUS, Inc.(a)	5,600		219,128

			803,496


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Diversified Manufacturing Operations — 1.1%
IDEX Corp.	6,100	$	253,699
Kennametal, Inc.	3,700		147,075

			400,774

Education — 2.1%
Corinthian Colleges, Inc.(a)	6,100		338,916
ITT Educational Services, Inc.(a)	2,810		131,986
Sylvan Learning Systems, Inc.(a)	9,400		270,626

			741,528

Electronics — 2.8%
Aeroflex, Inc.(a)	29,200		341,348
Digital Theater Systems, Inc.(a)	6,000		148,140
OmniVision Technologies, Inc.(a)	2,200		121,550
Plexus Corp.(a)	10,400		178,568
Trimble Navigation, Ltd.(a)	700		26,068
Varian Semiconductor Equipment Associates, Inc.(a)	3,600		157,284

			972,958

Electronic Components — 7.0%
Artisan Components, Inc.(a)	7,800		159,900
Benchmark Electronics, Inc.(a)	5,500		191,455
Cymer, Inc.(a)	6,600		304,854
GrafTech International, Ltd.(a)	8,700		117,450
Integrated Circuit Systems, Inc.(a)	5,000		142,450
Integrated Silicon Solution, Inc.(a)	12,400		194,308
Lattice Semiconductor Corp.(a)	27,000		261,360
Microsemi Corp.(a)	10,700		263,006
MKS Instruments, Inc.(a)	10,600		307,400
Semtech Corp.(a)	12,000		272,760
Zoran Corp.(a)	13,900		241,721

			2,456,664

Entertainment — 0.9%
Marvel Enterprises, Inc.(a)	10,900		317,299

Financial Services — 3.0%
Affiliated Managers Group, Inc.(a)	2,100		146,139
Eaton Vance Corp.	5,900		216,176
Knight Trading Group, Inc.(a)	21,300		311,832
National Financial Partners Corp.	7,100		195,605
Raymond James Financial, Inc.	4,400		165,880

			1,035,632

Gaming — 4.1%
Alliance Gaming Corp.(a)	14,100		347,565
Mandalay Resort Group	3,800		169,936
Scientific Games Corp. (Class “A” Stock)(a)	16,000		272,160
Station Casinos, Inc.	10,900		333,867
WMS Industries, Inc.(a)	11,600		303,920

			1,427,448

Health Services — 4.9%
Accredo Health, Inc.(a)	10,400		328,744
DaVita, Inc.(a)	4,200		163,800
Neurocrine Biosciences, Inc.(a)	3,400		185,436
Select Medical Corp.	19,300		314,204
SFBC International, Inc.(a)	8,600		228,416

SEE NOTES TO FINANCIAL STATEMENTS.

B86




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Health Services (cont’d.)
Sierra Health Services, Inc.(a)	10,300	$	282,735
United Surgical Partners International, Inc.(a)	6,800		227,664

			1,730,999

Hospitals — 0.7%
Community Health Systems, Inc.(a)	9,600		255,168

Human Resources — 2.9%
Heidrick & Struggles International, Inc.(a)	16,100		350,980
Labor Ready, Inc.(a)	27,100		355,010
Resources Connection, Inc.(a)	10,790		294,675

			1,000,665

Index Fund — 0.9%
iShares Russell 2000 Growth Fund	5,000		296,300

Insurance — 0.5%
United National Group, Ltd. (Class “A” Stock)(a)	10,000		176,700

Internet Services — 2.0%
Ask Jeeves, Inc.(a)	15,000		271,800
EarthLink, Inc.(a)	23,900		239,000
Netflix, Inc.(a)	3,600		196,884

			707,684

Media — 0.6%
Radio One, Inc. (Class “D” Stock)(a)	10,600		204,580

Medical Products — 12.4%
Abgenix, Inc.(a)	13,000		161,980
Advanced Neuromodulation Systems, Inc.(a)	6,350		291,973
ALARIS Medical Systems, Inc.(a)	7,100		107,991
ArthroCare Corp.(a)	3,853		94,398
Celgene Corp.(a)	4,700		211,594
Connetics Corp.(a)	14,500		263,320
Cyberonics, Inc.(a)	4,900		156,849
Cypress Bioscience, Inc.(a)	9,800		148,470
Eon Labs, Inc.(a)	2,400		122,280
Gen-Probe, Inc.(a)	8,600		313,642
IDEXX Laboratories, Inc.(a)	3,500		161,980
ILEX Oncology, Inc.(a)	12,200		259,250
INAMED Corp.(a)	900		43,254
Ligand Pharmaceuticals, Inc. (Class “B” Stock)(a)	13,300		195,377
Martek Biosciences Corp.(a)	4,100		266,377
MGI Pharma, Inc.(a)	5,800		238,670
NPS Pharmaceuticals, Inc.(a)	6,900		212,106
OSI Pharmaceuticals, Inc.(a)	5,500		177,155
Pharmaceutical Resourses, Inc.(a)	1,900		123,785
POZEN, Inc.(a)	3,200		32,640
Regeneration Technologies, Inc.(a)	14,600		160,016
Serologicals Corp.(a)	6,800		126,480
Therasense, Inc.(a)	7,600		154,280
Valeant Pharmaceuticals International	12,300		309,345

			4,333,212


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Metals & Mining — 1.8%
Allegheny Technologies, Inc.	16,400	$	216,808
Arch Coal, Inc.	8,100		252,477
Joy Global, Inc.	6,200		162,130

			631,415

Oil & Gas Equipment & Services — 1.8%
Airgas, Inc.	12,200		262,056
Maverick Tube Corp.(a)	9,400		180,950
National-Oilwell, Inc.(a)	8,800		196,768

			639,774

Oil & Gas Exploration & Production — 1.3%
Patterson-UTI Energy, Inc.(a)	5,800		190,936
Precision Drilling Corp. (Canada)(a)	3,400		148,512
Spinnaker Exploration Co.(a)	3,800		122,626

			462,074

Restaurants — 1.4%
P. F. Chang’s China Bistro, Inc.(a)	4,700		239,136
Panera Bread Co. (Class “A” Stock)(a)	6,600		260,898

			500,034

Retail — 4.0%
Advance Auto Parts, Inc.(a)	3,900		317,460
Guitar Center, Inc.(a)	8,500		276,930
Linens ‘n Things, Inc.(a)	8,700		261,696
PETCO Animal Supplies, Inc.(a)	8,600		261,870
Tuesday Morning Corp.(a)	9,800		296,450

			1,414,406

Semiconductor Equipment — 1.6%
Asyst Technologies, Inc.(a)	10,400		180,440
Ultratech, Inc.(a)	7,400		217,338
Vitesse Semiconductor Corp.(a)	26,400		154,968

			552,746

Telecommunication Equipment — 3.7%
Arris Group, Inc.(a)	38,400		278,016
Inet Technologies, Inc.(a)	14,700		176,400
Powerwave Technologies, Inc.(a)	32,800		250,920
REMEC, Inc.(a)	27,000		227,070
Sonus Networks, Inc.(a)	18,400		139,104
Tekelec(a)	14,250		221,587

			1,293,097

Telecommunication Services — 1.8%
Nextel Partners, Inc. (Class “A” Stock)(a)	23,400		314,730
Western Wireless Corp. (Class “A” Stock)(a)	16,300		299,268

			613,998

Trucking/Shipping — 2.3%
Central Freight Lines, Inc.(a)	3,600		63,900
Oshkosh Truck Corp.	5,000		255,150
Overnite Corp.(a)	10,400		236,600
Wabash National Corp.(a)	8,400		246,120

			801,770

SEE NOTES TO FINANCIAL STATEMENTS.

B87




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Waste Management — 0.5%
Stericycle, Inc.(a)	4,000	$	186,801

TOTAL LONG-TERM INVESTMENTS (cost $28,116,293)			32,324,784


SHORT-TERM INVESTMENT — 16.8%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co., 0.50%, 1/2/04(b) (cost $5,892,599)	$	5,893	$	5,892,599

TOTAL INVESTMENTS — 109.1% (cost $34,008,892; Note 6)				38,217,383
LIABILITIES IN EXCESS OF OTHER ASSETS — (9.1)%				(3,198,267	)

NET ASSETS — 100%			$	35,019,116

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $5,892,763 due 1/2/04. The value of the collateral including accrued interest was $6,011,322. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B88




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 82.8%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Australia — 1.1%
BHP Billiton, Ltd.	264,300	$	2,427,478

Austria — 1.4%
Erste Bank der Oesterreichischen Sparkassen AG	25,308		3,127,424

Brazil — 2.8%
Petroleo Brasileiro SA, ADR(b)	100,600		2,941,544
Unibanco-Uniaode Bancos Brasileiros SA	126,300		3,151,185

			6,092,729

Finland — 1.8%
Nokia Oyj (Class “A” Stock)	224,339		3,879,520

France — 3.6%
Sanofi-Synthelabo SA	37,100		2,793,727
Societe Television Francaise 1	40,600		1,417,516
Total SA	20,023		3,722,738

			7,933,981

Germany — 3.2%
Muenchener Rueckversicherungs-Gesellschaft AG	24,742		2,999,745
SAP AG	8,440		1,417,488
Siemens AG	32,200		2,579,084

			6,996,317

Hong Kong — 2.9%
Esprit Holdings, Ltd.	1,128,188		3,749,122
Techtronic Industries Co., Ltd.	948,000		2,625,278

			6,374,400

Ireland — 1.8%
Anglo Irish Bank Corp. PLC	252,100		3,978,011

Israel — 0.3%
Teva Pharmaceutical Industries, Ltd., ADR(b)	12,300		697,533

Italy — 6.6%
Banca Nazionale Lavoro SpA(a)	1,415,800		3,384,129
Banco Popolare di Verona e Novara Scrl	212,054		3,589,507
Eni SpA	214,900		4,055,121
Telecom Italia SpA	1,135,176		3,364,859

			14,393,616

Japan — 22.5%
Aoyama Trading Co., Ltd.	176,300		3,487,506
Canon, Inc.	42,000		1,955,585
Copal Co.(b)	102,000		1,647,495
Diamond City Co., Ltd.(b)	36,700		871,527
Mitsubishi Corp.	470,000		4,981,991
Mitsubishi Tokyo Financial Group, Inc.	312		2,433,815
Mitsui Mining & Smelting Co., Ltd.	686,000		2,848,465
Nikko Exchange Traded Index Fund TOPIX	321,000		3,142,008
Nitto Denko Corp.	92,900		4,941,028
Seria Co., Ltd.	104		431,837
Shionogi & Co., Ltd.	200,000		3,724,923
Sumitomo Mitsui Financial Group, Inc.	459		2,445,544


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Sumitomo Realty & Development Co., Ltd.	434,000	$	3,822,861
Taisei Corp.	925,000		3,383,409
Nomura Exchange Traded Index Fund TOPIX	320,900		3,158,995
Yahoo! Japan Corp.(a)	184		2,472,334
Yamaha Corp.(b)	179,200		3,519,791


			49,269,114

Mexico — 0.5%
Grupo Financiero BBVA Bancomer SA de CV (Class “B” Stock)(a)(b)	1,302,000		1,112,301

Netherlands — 4.5%
ASM International NV(a)(b)	171,300		3,467,112
IHC Caland NV	38,800		2,104,437
ING Groep NV	183,700		4,284,320

			9,855,869

South Korea — 1.4%
Samsung Electronics Co., Ltd.	8,000		3,028,116

Spain — 2.4%
Antena 3 Television, SA(a)	370		16,307
Banco Popular Espanol SA(b)	53,719		3,204,977
Telefonica SA	136,906		2,010,070

			5,231,354

Switzerland — 6.7%
Nobel Biocare Holding AG	43,700		4,425,652
Roche Holding AG	53,000		5,346,068
UBS AG	71,500		4,896,746

			14,668,466

United Kingdom — 19.3%
AstraZeneca PLC	81,700		3,919,644
Barclays PLC	499,700		4,457,039
COLT Telecom Group PLC(a)	987,100		1,674,288
Exel PLC	342,500		4,527,942
HSBC Holdings PLC	214,100		3,365,123
Man Group PLC	97,660		2,554,210
Reckitt Benckiser PLC	270,516		6,121,104
Smith & Nephew PLC	206,600		1,735,499
Tesco PLC	1,279,113		5,901,974
Vodafone Group PLC	3,306,097		8,197,003

			42,453,826

TOTAL LONG-TERM INVESTMENTS (cost $145,467,185)			181,520,055

SHORT-TERM INVESTMENT — 21.2%
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series (cost $46,587,640; Note 4)(c)	46,587,640		46,587,640

TOTAL INVESTMENTS — 104.0% (cost $192,054,825)			228,107,695
LIABILITIES IN EXCESS OF OTHER ASSETS — (4.0)%			(8,839,703	)

TOTAL NET ASSETS — 100.0%		$	219,267,992

SEE NOTES TO FINANCIAL STATEMENTS.

B89




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

The industry classification of portfolio holdings and other liabilities in excess of assets shown as a percentage of net assets as of December 31, 2003 was as follows:


Mutual Fund	21.2	%
Commercial Banks	15.6	%
Pharmaceuticals	7.5	%
Oil & Gas	4.9	%
Wireless Telecommunication Services	3.7	%
Capital Markets	3.4	%
Specialty Retail	3.3	%
Diversified Telecommunications	3.2	%
Semiconductors & Semiconductor Equipment	3.0	%
Exchange Traded Funds	2.9	%
Health Care Equipment & Supplies	2.8	%
Household Products	2.8	%
Food & Staples Retailing	2.7	%
Metals & Mining	2.4	%
Leisure Equipment & Products	2.4	%
Trading Companies & Distributions	2.3	%
Chemicals	2.2	%
Real Estate	2.1	%
Air Freight & Couriers	2.1	%
Diversified Financial Services	1.9	%
Communications Equipment	1.8	%
Construction & Engineering	1.5	%
Insurance	1.4	%
Household Durables	1.2	%
Industrial Conglomerates	1.2	%
Internet Software & Services	1.1	%
Energy Equipment & Services	1.0	%
Office Electronics	0.9	%
Media	0.7	%
Software	0.6	%
Multiline Retail	0.2	%

	104.0	%
Other liabilities in excess of assets	(4.0	)%

	100.0	%

The following abbreviation is used in the portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $14,109,729; cash collateral of $14,887,349 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B90




		*SP LARGE CAP VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 99.4%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.2%
Lamar Advertising Co.(a)	3,700	$	138,084

Aerospace/Defense — 2.1%
Goodrich Corp.	4,900		145,481
Lockheed Martin Corp.	9,300		478,020
Northrop Grumman Corp.	5,800		554,480
Raytheon Co.	4,700		141,188
United Technologies Corp.	2,200		208,494

			1,527,663

Airlines — 0.3%
JetBlue Airways Corp.(a)	2,850		75,582
Southwest Airlines Co.	6,600		106,524

			182,106

Appliances & Home Furnishings — 0.6%
American Standard Cos., Inc.(a)	4,000		402,800

Automobiles & Trucks — 1.3%
American Axle & Manufacturing Holdings, Inc.(a)	7,300		295,066
International Speedway Corp. (Class “A” Stock)	2,200		98,252
Keystone Automotive Industries, Inc.(a)	4,100		103,976
Lear Corp.	5,100		312,783
Navistar International Corp.(a)	3,500		167,615

			977,692

Banks and Savings & Loans — 12.4%
Bank of America Corp.	22,400		1,801,632
Bank of New York Co., Inc.	19,100		632,592
Bank One Corp.	21,600		984,744
Banknorth Group, Inc.	7,000		227,710
City National Corp.	3,500		217,420
Fifth Third Bancorp	5,000		295,500
FleetBoston Financial Corp.	10,718		467,841
Golden West Financial Corp.	4,100		423,079
M&T Bank Corp.	2,300		226,090
New York Community Bancorp, Inc.	6,100		232,105
Popular, Inc.	4,900		220,206
Sovereign Bancorp, Inc.	19,600		465,500
Synovus Financial Corp.	4,000		115,680
U.S. Bancorp	12,800		381,184
UnionBanCal Corp.	1,800		103,572
Wachovia Corp.	12,000		559,080
Wells Fargo & Co.	25,800		1,519,362
Zions Bancorporation	2,200		134,926

			9,008,223

Chemicals — 2.6%
Cytec Industries, Inc.(a)	3,600		138,204
Dow Chemical Co. (The)	22,000		914,540
E.I. du Pont de Nemours & Co.	2,800		128,492
Georgia Gulf Corp.	2,800		80,864
Millennium Chemicals, Inc.	16,000		202,880
Praxair, Inc.	12,200		466,040

			1,931,020

Commercial Services — 0.8%
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	2,400		130,704


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Commercial Services (cont’d.)
ChoicePoint, Inc.(a)	4,600	$	175,214
First Data Corp.	3,500		143,815
Paychex, Inc.	4,500		167,400

			617,133

Construction & Housing — 0.9%
Martin Marietta Materials, Inc.	2,900		136,213
Pulte Homes, Inc.	3,200		299,584
SCP Pool Corp.(a)	6,600		215,688

			651,485

Containers — 0.5%
Pactiv Corp.(a)	16,500		394,350

Diversified Consumer Products — 2.7%
Alberto-Culver Co.	2,800		176,624
Colgate-Palmolive Co.	2,900		145,145
Fortune Brands, Inc.	4,400		314,556
Gillette Co.	12,100		444,433
Procter & Gamble Co.	9,000		898,920

			1,979,678

Diversified Operations — 2.3%
3M Co.	5,300		450,659
Eaton Corp.	2,100		226,758
Honeywell International, Inc.	12,400		414,532
ITT Industries, Inc.	2,400		178,104
Pentair, Inc.	9,000		411,300

			1,681,353

Drugs & Medical Supplies — 3.6%
Abbott Laboratories	4,400		205,040
Angiotech Pharmaceuticals, Inc.(a)	4,900		225,400
AstraZeneca PLC, ADR (United Kingdom)	2,200		106,436
Becton, Dickinson & Co.	6,000		246,840
Invitrogen Corp.(a)	2,500		175,000
Merck & Co., Inc.	20,400		942,480
Novartis AG ADR (Switzerland)	2,200		100,958
Schering-Plough Corp.	25,700		446,923
Wyeth	3,800		161,310

			2,610,387

Electronics — 1.5%
Avnet, Inc.(a)	15,000		324,900
Emerson Electric Co.	2,100		135,975
Hughes Electronics Corp.(a)	16,135		267,035
National Semiconductor Corp.(a)	3,100		122,171
Texas Instruments, Inc.	8,100		237,978

			1,088,059

Financial Services — 12.2%
Bear Stearns & Cos., Inc. (The)	2,800		223,860
CIT Group, Inc.	5,700		204,915
Citigroup, Inc.	73,074		3,547,012
Countrywide Financial Corp.	4,133		313,513
Federated Investors, Inc. (Class “B” Stock)	4,700		137,992
Goldman Sachs Group, Inc	1,700		167,841
J.P. Morgan Chase & Co.	19,500		716,235
Lehman Brothers Holdings, Inc.	6,100		471,042

SEE NOTES TO FINANCIAL STATEMENTS.

B91




		*SP LARGE CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Financial Services (cont’d.)
MBIA, Inc.	8,000	$	473,840
MBNA Corp.	5,950		147,858
Merrill Lynch & Co., Inc.	19,500		1,143,675
Morgan Stanley	19,900		1,151,613
National Commerce Financial Corp.	6,800		185,504

			8,884,900

Food & Beverage — 2.3%
Dean Foods Co.(a)	5,300		174,211
Hershey Foods Corp.	400		30,796
J.M. Smucker Co. (The)	3,600		163,044
Kellogg Co.	3,300		125,664
McCormick & Co., Inc.	5,600		168,560
McDonald’s Corp.	29,100		722,553
Outback Steakhouse, Inc.	2,200		97,262
Sysco Corp.	4,300		160,089

			1,642,179

Healthcare Service — 1.5%
Aetna, Inc.	3,200		216,256
Coventry Health Care, Inc.(a)	3,000		193,470
Humana, Inc.(a)	12,300		281,055
UnitedHealth Group, Inc.	6,900		401,442

			1,092,223

Index Fund — 0.6%
iShares Russell 1000 Value Index Fund	7,200		420,264

Industrial Technology — 0.6%
Kennametal, Inc.	2,000		79,500
Parker-Hannifin Corp.	5,500		327,250

			406,750

Insurance — 6.1%
AFLAC, Inc.	6,700		242,406
Allstate Corp.	18,500		795,870
AMBAC Financial Group, Inc.	3,950		274,090
American International Group, Inc.	19,000		1,259,320
Fidelity National Financial, Inc.	4,600		178,388
Hartford Financial Services Group, Inc.	7,900		466,337
MetLife, Inc.	21,700		730,639
Nationwide Financial Services, Inc. (Class “A” Stock)	4,300		142,158
Old Republic International Corp.	12,750		323,340
Travelers Property Casualty Corp. (Class “B” Stock)	3,363		57,070

			4,469,618

Leisure — 0.2%
Mandalay Resort Group	3,300		147,576

Machinery — 0.9%
AGCO Corp.(a)	5,200		104,728
Caterpillar, Inc.	2,800		232,456
Cummins, Inc.	3,300		161,502
Terex Corp.(a)	5,100		145,248

			643,934

Media — 7.2%
Cablevision Systems New York Group (Class “A” Stock)(a)	10,100		236,239


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (cont’d.)
Clear Channel Communications, Inc.	12,600	$	590,058
Comcast Corp. (Class “A” Stock)(a)	5,037		165,566
E.W. Scripps Co. (The) (Class “A” Stock)	1,600		150,624
EchoStar Communications Corp. (Class “A” Stock)(a)	6,300		214,200
Fox Entertainment Group, Inc. (Class “A” Stock)(a)	9,600		279,840
Liberty Media Corp. (Class “A” Stock)(a)	15,300		181,917
News Corp. Ltd., ADR (Australia)	1,805		54,591
Time Warner, Inc.(a)	69,200		1,244,908
Tribune Co.	5,600		288,960
Univision Communications, Inc. (Class “A” Stock)(a)	4,300		170,667
Viacom, Inc. (Class “B” Stock)	18,400		816,592
Walt Disney Co. (The)	29,500		688,235
Washington Post Co. (The) (Class “B” Stock)	200		158,280

			5,240,677

Metal & Minerals — 3.0%
Alcan, Inc. (Canada)	10,000		469,500
Alcoa, Inc.	9,900		376,200
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	5,500		231,715
Nucor Corp.	4,300		240,800
Peabody Energy Corp.	4,200		175,182
Phelps Dodge Corp.(a)	7,100		540,239
Precision Castparts Corp.	3,900		177,099

			2,210,735

Oil & Gas — 11.2%
Apache Corp.	3,600		291,960
Burlington Resources, Inc.	4,000		221,520
Chesapeake Energy Corp.	13,800		187,404
ChevronTexaco Corp.	16,664		1,439,603
ConocoPhillips	11,699		767,103
Devon Energy Corp.	3,900		223,314
Equitable Resources, Inc.	4,600		197,432
Exxon Mobil Corp.	94,300		3,866,300
Occidental Petroleum Corp.	11,300		477,312
Pioneer Natural Resources Co.(a)	4,900		156,457
Pride International, Inc.(a)	7,300		136,072
Schlumberger, Ltd.	2,600		142,272
Smith International, Inc.(a)	600		24,912

			8,131,661

Real Estate Investment Trust — 3.0%
Apartment Investment & Management Co. (Class “A” Stock)	4,300		148,350
CBL & Associates Properties, Inc.	2,500		141,250
CenterPoint Properties Trust	3,500		262,150
Developers Diversified Realty Corp.	5,700		191,349
Equity Residential	6,100		180,011
ProLogis	6,100		195,749
Public Storage, Inc.	7,400		321,086
Reckson Associates Realty Corp.	8,400		204,120
Simon Property Group, Inc.	7,300		338,282

SEE NOTES TO FINANCIAL STATEMENTS.

B92




		*SP LARGE CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Real Estate Investment Trust (cont’d.)
Vornado Realty Trust	3,400	$	186,150

			2,168,497

Retail — 2.3%
Big Lots, Inc.(a)	5,800		82,418
CVS Corp.	17,400		628,488
Foot Locker, Inc.	7,200		168,840
Liz Claiborne, Inc.	4,600		163,116
Nordstrom, Inc.	4,100		140,630
Office Depot, Inc.(a)	10,500		175,455
Safeway, Inc.(a)	10,100		221,291
Saks, Inc.(a)	8,200		123,328

			1,703,566

Technology — 3.4%
Ceridian Corp.(a)	6,400		134,016
Computer Sciences Corp.(a)	4,600		203,458
Dell, Inc.(a)	5,300		179,988
DST Systems, Inc.(a)	3,400		141,984
Hewlett-Packard Co.	20,000		459,400
International Business Machines Corp. (IBM)	8,900		824,852
Maxtor Corp.(a)	10,700		118,770
Storage Technology Corp.(a)	5,000		128,750
Sun Microsystems, Inc.(a)	60,500		271,645

			2,462,863

Telecommunications — 6.9%
ALLTEL Corp.	5,200		242,216
Avaya, Inc.(a)	12,600		163,044
BellSouth Corp.	21,500		608,450
CenturyTel, Inc.	5,900		192,458
CIENA Corp.(a)	17,000		112,880
Motorola, Inc.	9,700		136,479
Nextel Communications, Inc. (Class “A” Stock)(a)	5,600		157,136
Qwest Communications International, Inc.(a)	43,300		187,056
SBC Communications, Inc.	55,900		1,457,313
Scientific — Atlanta, Inc.	5,300		144,690
Verizon Communications, Inc.	46,900		1,645,252

			5,046,974

Tobacco — 0.4%
Altria Group, Inc.	6,000		326,520

Transportation — 1.0%
CSX Corp.	700		25,158


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Transportation (cont’d.)
Norfolk Southern Corp.		11,300	$	267,245
Union Pacific Corp.		6,300		437,724

				730,127

Utility – Electric — 4.2%
Allegheny Energy, Inc.(a)		12,800		163,328
Ameren Corp.		5,200		239,200
Dominion Resources, Inc.		6,900		440,427
Exelon Corp.		2,400		159,264
FirstEnergy Corp.		9,200		323,840
FPL Group, Inc.		4,600		300,932
KeySpan Corp.		4,400		161,920
PG&E Corp.(a)		10,600		294,362
PPL Corp.		6,600		288,750
SCANA Corp.		4,100		140,425
TXU Corp.		10,900		258,548
Wisconsin Energy Corp.		3,600		120,420
Xcel Energy, Inc.		11,000		186,780

				3,078,196

Waste Management — 0.6%
Republic Services, Inc.		8,400		215,292
Waste Management, Inc.		8,600		254,560

				469,852

TOTAL LONG-TERM INVESTMENTS (cost $63,946,975)				72,467,145

SHORT-TERM INVESTMENT — 1.0%

	Principal Amount (000)
Repurchase Agreement
State Street Bank & Trust Co. 0.50%, 1/2/04(b) (cost $740,067)	$	740		740,067

TOTAL INVESTMENTS — 100.4% (cost $64,687,042; Note 6)				73,207,212
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.4)%				(324,532	)

NET ASSETS — 100%			$	72,882,680

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $740,088 due 1/2/04. The value of the collateral including accrued interest was $757,094. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B93




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 96.0%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.7%
Getty Images, Inc.(a)	720	$	36,094
Lamar Advertising Co.(a)	2,700		100,764

			136,858

Aerospace/Defense — 0.8%
Lockheed Martin Corp.	3,310		170,134

Airlines — 0.1%
Southwest Airlines Co.	1,300		20,982

Banks and Savings & Loans — 2.3%
Bank of New York Co., Inc. (The)	2,290		75,845
Mellon Financial Corp.	9,330		299,586
Northern Trust Corp.	1,890		87,734

			463,165

Chemicals — 0.9%
Air Products & Chemicals, Inc.	1,940		102,490
Lyondell Chemical Co.	4,690		79,496

			181,986

Computers — 1.6%
Dell, Inc.(a)	4,260		144,670
International Business Machines Corp. (IBM)	2,000		185,360

			330,030

Computer Services — 5.7%
Avid Technology, Inc.(a)	590		28,320
BEA Systems, Inc.(a)	3,240		39,852
BISYS Group, Inc. (The)(a)	3,440		51,187
DST Systems, Inc.(a)	1,260		52,618
Manhattan Associates, Inc.(a)	490		13,544
Mercury Interactive Corp.(a)	2,050		99,712
Microsoft Corp.	22,556		621,192
Oracle Corp.(a)	7,269		95,951
SunGard Data Systems, Inc.(a)	720		19,951
VERITAS Software Corp.(a)	3,796		141,059

			1,163,386

Containers & Packaging — 1.3%
Owens-Illinois, Inc.(a)	13,900		165,271
Smurfit-Stone Container Corp.(a)	5,090		94,521

			259,792

Cosmetics/Toiletries — 1.5%
Avon Products, Inc.	1,370		92,461
Kimberly-Clark Corp.	3,490		206,224

			298,685

Diversified Manufacturing Operations — 5.4%
Cooper Industries Ltd. (Class “A” Stock)	700		40,551
Danaher Corp.	420		38,535
Eaton Corp.	110		11,878
General Electric Co.	11,070		342,949
Illinois Tool Works, Inc.	620		52,024
Newell Rubbermaid, Inc.	10,130		230,660
Tyco International Ltd.	14,500		384,250

			1,100,847


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies — 12.3%
Abbott Laboratories	2,110	$	98,326
Amgen, Inc.(a)	1,250		77,250
Applera Corp.-Applied Biosystems Group	2,240		46,390
Baxter International, Inc.	5,871		179,183
Eli Lilly & Co.	1,340		94,242
Genzyme Corp.(a)	1,639		80,868
Gilead Sciences, Inc.(a)	2,800		162,792
Johnson & Johnson	9,030		466,490
Medtronic, Inc.	1,620		78,748
Merck & Co., Inc.	5,230		241,626
Pfizer, Inc.	13,926		492,006
Schering-Plough Corp.	22,635		393,623
Wyeth	2,300		97,635

			2,509,179

Electronic Components — 2.2%
Amphenol Corp. (Class “A” Stock)(a)	400		25,572
Emerson Electric Co.	720		46,620
Flextronics International Ltd. (Singapore)(a)	4,410		65,444
Molex, Inc.	1,750		61,058
Parker Hannifin Corp.	520		30,940
Synopsys, Inc.(a)	1,130		38,149
Texas Instruments, Inc.	3,330		97,835
Thermo Electron Corp.(a)	3,090		77,868

			443,486

Financial Services — 8.6%
American Express Co.	3,480		167,840
Citigroup, Inc.	8,819		428,074
Fannie Mae	700		52,542
FleetBoston Financial Corp.	2,580		112,617
Freddie Mac	3,620		211,118
Goldman Sachs Group, Inc.	1,250		123,413
JPMorgan	3,240		119,005
MBNA Corp.	3,550		88,218
Merrill Lynch & Co., Inc.	6,060		355,419
PNC Financial Services Group	1,300		71,149
SLM Corp.	220		8,290

			1,737,685

Food & Beverage — 0.4%
PepsiCo, Inc.	1,850		86,247

Hospital Management — 0.6%
Tenet Healthcare Corp.(a)	7,430		119,251

Insurance — 5.7%
ACE Ltd. (Cayman Islands)	1,720		71,242
Allstate Corp.	5,930		255,109
American International Group, Inc.	2,950		195,526
Hartford Financial Services Group, Inc. (The)	5,498		324,547
Marsh & McLennan Companies, Inc.	1,130		54,116
Montpelier Re Holdings, Ltd. (Bermuda)	10		367
Travelers Property Casualty Corp. (Class “A” Stock)	11,130		186,761
UnumProvident Corp.	2,390		37,690

SEE NOTES TO FINANCIAL STATEMENTS.

B94




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Insurance (cont’d.)
XL Capital, Ltd. (Class “A” Stock) (Bermuda)	490	$	38,000

			1,163,358

Internet — 1.9%
Akamai Technologies, Inc.(a)	4,780		51,385
InterActiveCorp(a)	3,470		117,737
Monster Worldwide, Inc.(a)	2,000		43,920
Network Associates, Inc.(a)	11,670		175,517

			388,559

Leisure — 0.7%
Carnival Corp.	730		29,003
Hilton Hotels Corp.	5,005		85,736
Starwood Hotels & Resorts Worldwide, Inc.	830		29,855

			144,594

Media — 7.7%
Clear Channel Communications, Inc.	3,070		143,768
ComCast Corp. (Class “A” Stock)(a)	13,540		423,531
Cox Communications, Inc. (Class “A” Stock)(a)	1,160		39,962
Entercom Communications Corp.(a)	620		32,835
New York Times Co. (The) (Class “A” Stock)	1,670		79,809
Time Warner, Inc.(a)	3,160		56,849
Univision Communications, Inc. (Class “A” Stock)(a)	2,010		79,777
Viacom, Inc. (Class “B” Stock)	13,735		609,559
Walt Disney Co. (The)	45		1,050
Westwood One, Inc.(a)	3,080		105,367

			1,572,507

Metals — 1.0%
Alcoa, Inc.	5,480		208,240

Networking Products — 2.0%
Cisco Systems, Inc.(a)	13,710		333,016
Foundry Networks, Inc.(a)	1,840		50,342
Juniper Networks, Inc.(a)	1,540		28,767

			412,125

Oil – Exploration & Production — 4.9%
Devon Energy Corp.	2,930		167,772
GlobalSantaFe Corp.	11,900		295,477
NiSource, Inc.	6,130		134,492
Noble Corp. (Cayman Islands)(a)	7,740		276,937
Occidental Petroleum Corp.	2,840		119,962

			994,640

Oil & Gas Services — 3.0%
BJ Services Co.(a)	4,040		145,036
Calpine Corp.(a)	42,340		203,655
Cooper Cameron Corp.(a)	2,760		128,616
Schlumberger Ltd.	2,440		133,517

			610,824


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Paper & Forest Products — 0.8%
Boise Cascade Corp.	850	$	27,931
Bowater, Inc.	2,810		130,131

			158,062

Restaurants — 0.8%
McDonald’s Corp.	3,020		74,987
Outback Steakhouse, Inc.	2,000		88,420

			163,407

Retail — 8.1%
Chico’s FAS, Inc.(a)	60		2,217
CVS Corp.	1,700		61,404
Home Depot, Inc.	5,450		193,420
Hot Topic, Inc.(a)	1,100		32,406
Kohl’s Corp.(a)	3,000		134,820
Kroger Co.(a)	12,110		224,156
Pier 1 Imports, Inc.	1,240		27,106
Reebok International Ltd.	2,380		93,582
Rite Aid Corp.(a)	10,770		65,051
Sears, Roebuck & Co.	5,995		272,713
Staples, Inc.(a)	2,750		75,075
Target Corp.	4,510		173,184
TJX Companies, Inc.	2,190		48,290
Wal-Mart Stores, Inc.	2,890		153,314
Walgreen Co.	1,340		48,749
Williams-Sonoma, Inc.(a)	1,270		44,158

			1,649,645

Semiconductors — 3.5%
Analog Devices, Inc.	3,340		152,471
Linear Technology Corp.	1,760		74,043
Marvell Technology Group Ltd. (Bermuda)(a)	1,970		74,722
Maxim Integrated Products, Inc.	1,600		79,680
Microchip Technology, Inc.	2,500		83,400
Novellus Systems, Inc.(a)	1,690		71,064
PMC-Sierra, Inc.(a)	2,770		55,816
Xilinx, Inc.(a)	3,000		116,220

			707,416

Telecommunications — 9.6%
ADTRAN, Inc.	4,060		125,860
Amdocs Ltd. (Channel Islands)(a)	1,640		36,867
AT&T Corp.	14,720		298,816
AT&T Wireless Services, Inc.(a)	58,870		470,372
Corning, Inc.(a)	4,800		50,064
EchoStar Communications Corp. (Class “A” Stock)(a)	1,160		39,440
Nokia Oyj, ADR (Finland)(a)	5,350		90,950
Nortel Networks Corp. (Canada)(a)	17,250		72,968
QUALCOMM, Inc.	340		18,336
Sprint Corp. (PCS Group)(a)	6,110		34,338
Telephone and Data Systems, Inc.	3,200		200,160
Verizon Communications, Inc.	14,490		508,309
Winstar Communications, Inc.(a)	930		1

			1,946,481

SEE NOTES TO FINANCIAL STATEMENTS.

B95




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Trucking/Shipping — 0.8%
FedEx Corp.	1,380	$	93,150
United Parcel Service, Inc. (Class “B” Stock)	850		63,367

			156,517

Utilities – Electric — 1.1%
FirstEnergy Corp.	1,100		38,720
TXU Corp.	7,370		174,816

			213,536

TOTAL LONG-TERM INVESTMENTS (cost $17,087,413)			19,511,624


SHORT-TERM INVESTMENT — 4.4%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. 0.50%, 1/2/04(b) (cost $881,021)	$	881	$	881,021

TOTAL INVESTMENTS — 100.4% (cost $17,968,434; Note 6)				20,392,645
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.4)%				(75,256	)

NET ASSETS — 100%			$	20,317,389

The following abbreviation is used in portfolio description:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $881,045 due 1/2/04. The value of the collateral including accrued interest was $903,465, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B96




		*SP MID-CAP GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.1%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Airlines — 0.7%
JetBlue Airways Corp.(a)	16,000	$	424,320

Apparel — 4.0%
Coach, Inc.(a)	46,500		1,755,375
Pacific Sunwear of California, Inc.(a)	27,500		580,800

			2,336,175

Biotechnology — 1.2%
Martek Biosciences Corp.(a)	11,000		714,670

Building & Construction — 1.9%
KB HOME	15,300		1,109,556

Computers — 2.1%
Apple Computer, Inc.(a)	25,000		534,250
Western Digital Corp.(a)	60,000		707,400

			1,241,650

Computer Services — 5.9%
Lexar Media, Inc.(a)	34,700		604,821
Maxtor Corp.(a)	44,400		492,840
Research In Motion Ltd.(a)	11,700		781,911
SanDisk Corp.(a)	16,500		1,008,810
Unisys Corp.(a)	41,000		608,850

			3,497,232

Drugs & Medical Supplies — 13.0%
ALARIS Medical, Inc.(a)	42,000		638,820
Beckman Coulter, Inc.	5,100		259,233
Celgene Corp.(a)	16,150		727,073
Connetics Corp.(a)	6,000		108,960
Gen-Probe, Inc.(a)	22,000		802,340
IDEXX Laboratories, Inc.(a)	15,000		694,200
ILEX Oncology, Inc.(a)	7,000		148,750
IVAX Corp.(a)	24,500		585,060
Pharmaceutical Resources, Inc.(a)	10,000		651,500
Sepracor, Inc.(a)	26,700		638,931
St. Jude Medical, Inc.(a)	7,000		429,450
Stryker Corp.	8,000		680,080
Zimmer Holdings, Inc.(a)	18,500		1,302,400

			7,666,797

Electronics — 5.0%
Garmin Ltd.	8,100		441,288
Harman International Industries, Inc.	27,900		2,064,042
PerkinElmer, Inc.	26,500		452,355

			2,957,685

Financial Services — 1.6%
Ameritrade Holding Corp.(a)	66,300		932,841

Healthcare Services — 3.7%
Humana, Inc.(a)	45,500		1,039,675
Laboratory Corp. of America Holdings(a)	16,500		609,675
Odyssey Healthcare, Inc.(a)	19,000		555,940

			2,205,290

Internet — 7.5%
Priceline.com, Inc.(a)	30,000		537,000
Symantec Corp.(a)	48,800		1,690,920
United Online, Inc.(a)	20,600		345,874


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Internet (cont’d.)
VeriSign, Inc.(a)	40,000	$	652,000
Yahoo!, Inc.(a)	26,600		1,201,522

			4,427,316

Leisure — 2.3%
GTECH Holdings Corp.	12,700		628,523
International Game Technology	20,500		731,850

			1,360,373

Media — 1.3%
Fox Entertainment Group, Inc. (Class “A” Stock)(a)	25,400		740,410

Mining — 1.1%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	15,200		640,376

Networking Products — 6.1%
Foundry Networks, Inc.(a)	67,000		1,833,120
Juniper Networks, Inc.(a)	94,900		1,772,732

			3,605,852

Oil & Gas Exploration & Production — 3.8%
Apache Corp.	11,975		971,173
EOG Resources, Inc.	10,400		480,168
Halliburton Co.	16,000		416,000
Pogo Producing Co.	8,100		391,230

			2,258,571

Paper & Paper Products — 1.2%
Georgia-Pacific Corp.	24,100		739,147

Personal Products — 1.9%
Energizer Holdings, Inc.(a)	14,500		544,620
Estee Lauder Cos, Inc. (Class “A” Stock)	14,000		549,640

			1,094,260

Restaurants — 3.0%
Applebee’s International, Inc.	18,000		706,860
McDonald’s Corp.	23,800		590,954
P. F. Chang’s China Bistro, Inc.(a)	9,000		457,920

			1,755,734

Retail — 4.4%
Amazon.com, Inc.(a)	20,000		1,052,800
Chico’s FAS, Inc.(a)	24,000		886,800
Fortune Brands, Inc.	8,900		636,261

			2,575,861

Schools — 3.8%
Apollo Group, Inc. (Class “A” Stock)(a)	16,000		1,088,000
ITT Educational Services, Inc.(a)	24,000		1,127,280

			2,215,280

Semiconductors — 7.1%
Advanced Micro Devices, Inc.(a)	72,600		1,081,740
Amkor Technology, Inc.(a)	33,300		606,393
ATI Technologies, Inc.(a)	30,000		453,600
Conexant Systems, Inc.(a)	62,000		308,140
GlobespanVirata, Inc.(a)	22,700		133,476
LSI Logic Corp.(a)	52,900		469,223
National Semiconductor Corp.(a)	16,000		630,560
QLogic Corp.(a)	10,000		516,000

			4,199,132

SEE NOTES TO FINANCIAL STATEMENTS.

B97




		*SP MID-CAP GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Software — 7.4%
Adobe Systems, Inc.	13,300	$	522,690
Citrix Systems, Inc.(a)	25,500		540,855
Cognos, Inc.(a)	12,600		385,812
Electronic Arts, Inc.(a)	28,000		1,337,840
Novell, Inc.(a)	87,000		915,240
Pixar, Inc.(a)	9,500		658,255

			4,360,692

Telecommunications — 7.3%
ADTRAN, Inc.	23,000		713,000
Corning, Inc.(a)	100,000		1,043,000
EchoStar Communications Corp. (Class “A” Stock)(a)	8,600		292,400
Nextel Communications, Inc. (Class “A” Stock)(a)	53,500		1,501,210
Scientific-Atlanta, Inc.	16,500		450,450
Sonus Networks, Inc.(a)	36,800		278,208

			4,278,268

Toys — 1.9%
Hasbro, Inc.	35,000		744,800
Marvel Enterprises, Inc.(a)	12,000		349,320

			1,094,120

Transport Services — 0.9%
J.B. Hunt Transport Services, Inc.(a)	20,000		540,200

TOTAL LONG-TERM INVESTMENTS (cost $49,117,835)			58,971,808



SHORT-TERM INVESTMENT — 2.1%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. Repurchase Agreement 0.50%, 1/2/04(b) (cost $1,260,918)	$	1,261	$	1,260,918

TOTAL INVESTMENTS — 102.2% (cost $50,378,753; Note 6)				60,232,726
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.2)%				(1,325,049	)

NET ASSETS — 100%			$	58,907,677

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $1,260,953 due 1/2/04. The value of the collateral including accrued interest was $1,286,740. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B98




		*SP PIMCO HIGH YIELD PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 89.4% LONG-TERM BONDS — 89.3%	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS — 83.3%
Aerospace & Defense — 0.7%
Armor Holdings, Inc., Sr. Sub. Notes	B1	8.25%	08/15/13	$	1,000	$	1,070,000
Dunlop Standard Aerospace Holdings PLC, Sr. Notes (United Kingdom)	B3	11.875%	05/15/09		600		642,000

							1,712,000

Airlines — 1.3%
Continental Airlines, Inc., Pass-Through Certs.	Ba1	7.373%	12/15/15		189		164,120
Continental Airlines, Inc., Pass-Through Certs., Ser. 99-1A	Baa3	6.545%	02/02/19		651		643,373
Continental Airlines, Inc., Pass-Through Certs., Ser. 99-2	Baa3	7.256%	03/15/20		521		529,817
Delta Air Lines, Inc., Pass-Through Certs., Ser. 01-1	Baa2	6.619%	03/18/11		599		606,934
Delta Air Lines, Inc., Pass-Through Certs., Ser. 01-1	Baa2	7.111%	09/18/11		425		428,559
United Air Lines, Inc., Pass-Through Certs., Ser. 00-1	Ba3	7.73%	07/01/10		550		455,059
United Air Lines, Inc., Pass-Through Certs., Ser. 01-1	Ba3	6.201%	09/01/08		100		87,409
United Air Lines, Inc., Pass-Through Certs., Ser. 01-1	Baa3	6.602%	09/01/13		350		299,593
US Airways, Inc., Pass-Through Certs., Ser. 93-A2(a)	NR	9.625%	12/01/49		95		31,202

							3,246,066

Asset Backed Securities — 5.6%
Cedar Brakes II LLC	Caa1	9.875%	09/01/13		187		201,471
Jet Equipment Trust (Class A)(a)	Caa3	7.63%	08/15/12		81		37,193
Lehman Brothers, Inc., TRAIN HY-1-2003(c)	B1	8.685%	05/15/13		9,994		11,039,188
Midwest Generation LLC, Pass-Through Certs., Ser. A	B2	8.30%	07/02/09		300		312,761
Midwest Generation LLC, Pass-Through Certs., Ser. B	B2	8.56%	01/02/16		2,325		2,424,854

							14,015,467

Autos – Cars & Trucks — 2.5%
Arvin Capital I, Gtd. Notes	Ba2	9.50%	02/01/27		750		768,750
ArvinMeritor, Inc., Notes	Baa3	6.625%	06/15/07		650		682,500
ArvinMeritor, Inc, Notes	Baa3	8.75%	03/01/12		300		343,500
Dura Operating Corp., Gtd. Notes, Ser. B	B1	8.625%	04/15/12		800		852,000
General Motors Corp., Deb. Notes	Baa1	8.25%	07/15/23		550		624,475
General Motors Corp., Deb. Notes	Baa1	8.375%	07/15/33		325		377,264
Tenneco Automotive, Inc., Sec’d. Notes	B2	10.25%	07/15/13		1,000		1,137,500
TRW Automotive	B1	9.375%	02/15/13		1,200		1,371,000

							6,156,989

Broadcasting & Other Media — 1.2%
Allbritton Communications Co., Sr. Sub. Notes	B3	7.75%	12/15/12		600		622,500
Quebecor Media, Inc., Sr. Notes (Canada)	B2	11.125%	07/15/11		1,050		1,215,375
Vivendi Universal SA, Sr. Notes (France)	B1	9.25%	04/15/10		275		325,875
Young Broadcasting, Inc., Gtd. Notes	Caa1	10.00%	03/01/11		400		431,000
Young Broadcasting, Inc., Sr. Notes	B2	8.50%	12/15/08		375		403,125

							2,997,875

Cable — 4.0%
CanWest Media, Inc., Sr. Sub. Notes (Canada)	B2	10.625%	05/15/11		950		1,085,375
CF Cable TV, Inc., Sr. Notes	Ba3	9.125%	07/15/07		500		527,500
CSC Holdings, Inc., Debs., Ser. B	B1	8.125%	08/15/09		500		537,500
CSC Holdings, Inc., Sr. Notes	B1	7.25%	07/15/08		225		234,000
CSC Holdings, Inc., Sr. Notes	B1	7.875%	12/15/07		200		211,000
CSC Holdings, Inc., Sr. Notes, Ser. B	B1	7.625%	04/01/11		2,325		2,447,062
CSC Holdings, Inc., Sr. Notes, Ser. B	B1	8.125%	07/15/09		650		698,750
DirecTV Holdings LLC	B1	8.375%	03/15/13		1,475		1,711,000
EchoStar DBS Corp., Sr. Notes	Ba3	9.375%	02/01/09		200		210,250
EchoStar DBS Corp., Sr. Notes	Ba3	10.375%	10/01/07		750		822,188
Mediacom Broadband LLC, Gtd. Notes	B2	11.00%	07/15/13		1,100		1,234,750
Rogers Cablesystems, Ltd., Sr. Notes, Ser. B (Canada)	Ba2	10.00%	03/15/05		110		117,975

							9,837,350

SEE NOTES TO FINANCIAL STATEMENTS.

B99




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Chemicals — 1.8%
Equistar Chemicals LP	B2	8.75%	02/15/09	$	250	$	261,250
Equistar Chemicals LP, Gtd. Notes	B2	10.125%	09/01/08		425		465,375
Hercules, Inc., Gtd. Notes	Ba2	11.125%	11/15/07		220		263,450
ISP Chemco, Inc., Ser. B	B2	10.25%	07/01/11		1,050		1,181,250
Lyondell Chemical Co., Gtd. Notes	B1	9.50%	12/15/08		300		313,500
Millennium America, Inc., Gtd. Notes	B1	9.25%	06/15/08		575		626,750
Nalco Co., Sr. Notes	B2	7.75%	11/15/11		300		321,000
Westlake Chemical Corp., Gtd. Notes	Ba3	8.75%	07/15/11		1,000		1,095,000

							4,527,575

Containers — 3.4%
Crown European Holdings SA, Sec’d. Notes (France)	B1	9.50%	03/01/11		1,475		1,670,438
Greif, Inc., Gtd. Notes	B2	8.875%	08/01/12		500		550,000
Jefferson Smurfit Corp., Gtd. Notes	B2	7.50%	06/01/13		1,000		1,045,000
Kappa Beheer BV, Gtd. Notes (Netherlands)	B2	10.625%	07/15/09		1,275		1,364,250
Norampac, Inc., Sr. Notes	Ba2	6.75%	06/01/13		900		938,250
Owens-Brockway, Gtd. Notes	B1	7.75%	05/15/11		300		322,125
Owens-Brockway, Gtd. Notes	B2	8.25%	05/15/13		600		644,250
Owens-Brockway, Gtd. Notes	B1	8.875%	02/15/09		425		465,906
Owens-Brockway, Sec’d. Notes	B1	8.75%	11/15/12		575		640,406
Owens-Illinois, Inc., Sr. Notes	B3	7.15%	05/15/05		435		449,681
Stone Container Corp., Sr. Notes	B2	9.75%	02/01/11		200		221,000

							8,311,306

Cosmetics & Toiletries — 0.4%
JohnsonDiversey, Inc., Sr. Sub. Notes	B2	9.625%	05/15/12		800		892,000

Distribution/Wholesale — 0.4%
Aviall, Inc., Sr. Notes	B1	7.625%	07/01/11		875		912,188

Diversified Operations — 0.8%
Bombardier, Inc.(h)	Baa	6.25%	12/17/10		2,000		2,015,000

Drugs & Health Care — 3.0%
Fisher Scientific International, Inc., Sr. Sub. Notes	B2	8.00%	09/01/13		1,000		1,072,500
Fresenius Medical Care Capital Trust II, Gtd. Notes	Ba2	7.875%	02/01/08		250		267,500
Fresenius Medical Care Capital Trust IV, Gtd. Notes	Ba2	7.875%	06/15/11		1,475		1,593,000
HCA, Inc., Notes	Ba1	7.69%	06/15/25		500		527,655
HCA, Inc., Sr. Notes	Ba1	7.875%	02/01/11		650		741,332
HEALTHSOUTH Corp., Sr. Notes(a)	NR	3.25%	04/01/49		425		408,000
HEALTHSOUTH Corp., Sr. Notes(a)	NR	8.375%	10/01/11		300		283,500
HEALTHSOUTH Corp., Sr. Notes(a)	NR	8.50%	02/01/08		590		566,400
NeighborCare, Inc., Sr. Sub. Notes	Ba3	6.875%	11/15/13		200		203,500
PacifiCare Health Systems, Inc., Gtd. Notes	B1	10.75%	06/01/09		292		344,560
Rotech Healthcare, Inc., Sr. Sub. Notes	B2	9.50%	04/01/12		1,475		1,541,375

							7,549,322

Electronics — 0.3%
L-3 Communications Corp., Gtd. Notes	Ba3	6.125%	07/15/13		800		806,000

Entertainment — 1.8%
Gaylord Entertainment Co., Sr. Notes	B3	8.00%	11/15/13		175		184,625
Park Place Entertainment Corp., Sr. Notes	Ba1	7.00%	04/15/13		700		747,250
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	7.875%	03/15/10		400		443,000
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	8.875%	09/15/08		300		339,750
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	9.375%	02/15/07		600		679,500
Royal Caribbean Cruises Ltd., Sr. Notes	Ba2	8.00%	05/15/10		700		763,000
Royal Caribbean Cruises Ltd., Sr. Notes	Ba2	8.75%	02/02/11		275		310,750
Six Flags, Inc.	B2	9.75%	04/15/13		1,040		1,094,600

							4,562,475

SEE NOTES TO FINANCIAL STATEMENTS.

B100




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Financials — 5.7%
AES Red Oak LLC, Sec’d. Notes, Ser. A	B2	8.54%	11/30/19	$	96	$	103,835
Arch Western Finance, Sr. Notes	Ba2	6.75%	07/01/13		900		924,750
Bluewater Finance, Ltd., Gtd. Notes	B1	10.25%	02/15/12		1,150		1,196,000
Calpine Canada Energy Finance, Gtd. Notes (Canada)	Caa1	8.50%	05/01/08		50		39,875
Eircom Funding, Sr. Sub. Notes	B1	8.25%	08/15/13		200		221,500
Fiat Finance Lux Ltd., SA (Luxembourg)	Ba3	3.25%	01/09/07		850		841,500
FINOVA Group, Inc.	NA	7.50%	11/15/09		3,025		1,815,000
Ford Motor Credit Co.	A3	7.00%	10/01/13		600		632,808
Gemstone Investors, Ltd., Gtd. Notes	Caa1	7.71%	10/31/04		600		606,000
General Motors Acceptance Corp., Notes	A3	6.875%	08/28/12		150		161,374
H&E Equipment Finance LLC, Gtd. Notes	B3	11.125%	06/15/12		500		502,500
Jet Equipment Trust, Ser. 1995-A(a)	Caa3	10.00%	06/15/12		300		141,000
MDP Acquisitions PLC, Sr. Notes	B2	9.625%	10/01/12		1,400		1,568,000
Mizuho JGB Investment, Ser. A(d)	Baa3	9.87%	12/31/49		2,525		2,853,942
Mizuho Preferred Capital(d)	Baa3	8.79%	12/29/49		350		381,500
MSW Energy Holdings LLC/MSW Energy Finance Co., Inc., Gtd. Notes	Ba2	7.375%	09/01/10		500		522,500
Riggs Capital Trust, Gtd. Notes	Ba2	8.625%	12/31/26		1,050		1,081,500
Riggs Capital Trust, Gtd. Notes	Ba2	8.875%	03/15/27		100		104,000
Tokai Preferred Capital Co. LLC, Ser. A(d)	Baa3	9.98%	12/29/49		310		353,629

							14,051,213

Food & Beverage — 2.3%
Domino’s, Inc., Sr. Sub. Notes	B3	8.25%	07/01/11		600		642,750
Ingles Markets, Inc., Gtd. Notes	Ba3	8.875%	12/01/11		1,050		1,055,250
Merisant Co., Sr. Sub. Notes	B3	9.50%	07/15/13		1,235		1,315,275
Reddy Ice Group, Inc., Sr. Sub. Notes	B3	8.875%	08/01/11		1,000		1,060,000
Roundy’s, Inc., Sr. Sub. Notes, Ser. B	B2	8.875%	06/15/12		1,500		1,601,250

							5,674,525

Forest & Paper — 3.0%
Abitibi-Consolidated, Inc., (Canada)	Ba1	8.55%	08/01/10		950		1,057,920
Abitibi-Consolidated, Inc., Debs. (Canada)	Ba1	8.85%	08/01/30		260		281,067
Abitibi-Consolidated, Inc., Notes (Canada)	Ba1	5.25%	06/20/08		375		368,502
Abitibi-Consolidated, Inc., Notes (Canada)	Ba1	6.95%	04/01/08		200		209,574
Georgia-Pacific Corp., Deb. Notes	Ba3	9.125%	07/01/22		925		962,000
Georgia-Pacific Corp., Deb. Notes	Ba3	9.625%	03/15/22		2,450		2,548,000
Georgia-Pacific Corp., Deb. Notes	Ba3	9.875%	11/01/21		300		313,500
Georgia-Pacific Corp., Gtd. Notes	Ba2	9.375%	02/01/13		650		747,500
Georgia-Pacific Corp., Sr. Notes	Ba3	8.00%	01/15/24		100		102,000
Moore North America Finance, Sr. Notes	B1	7.875%	01/15/11		800		906,000

							7,496,063

Forest Products & Paper — 0.5%
Boise Cascade Corp., Sr. Notes	Ba2	7.00%	11/01/13		1,275		1,325,417

Gaming — 1.7%
Boyd Gaming Corp., Sr. Sub. Notes	B1	7.75%	12/15/12		1,325		1,417,750
Circus & Eldorado Circus, 1st Mtge. Notes	B1	10.125%	03/01/12		300		311,250
Mandalay Resort Group, Sr. Sub. Deb.	Ba3	7.625%	07/15/13		980		1,041,250
Mandalay Resort Group, Sr. Sub. Notes	Ba3	9.375%	02/15/10		100		116,500
MGM Mirage, Inc., Gtd. Notes	Ba2	8.375%	02/01/11		1,150		1,302,375

							4,189,125

Hospitals/Hospital Management — 2.4%
Beverly Enterprises, Inc., Sr. Notes	B1	9.625%	04/15/09		400		441,000
Extendicare Health Services, Inc., Gtd. Notes	B3	9.35%	12/15/07		120		123,600
Extendicare Health Services, Inc., Gtd. Notes	B2	9.50%	07/01/10		1,700		1,887,000
Tenet Healthcare Corp., Sr. Notes	B1	6.375%	12/01/11		625		600,000
Tenet Healthcare Corp., Sr. Notes	B1	6.50%	06/01/12		525		503,344
Tenet Healthcare Corp., Sr. Notes	B1	7.375%	02/01/13		1,875		1,884,375
Triad Hospitals, Inc., Sr. Sub. Notes	B3	7.00%	11/15/13		450		453,375

							5,892,694

SEE NOTES TO FINANCIAL STATEMENTS.

B101




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Industrial — 0.4%
FIMEP SA, Sr. Notes	B1	10.50%	02/15/13	$	850	$	1,003,000

Lodging — 2.6%
Extended Stay America, Inc., Sr. Sub. Notes	B2	9.875%	06/15/11		1,050		1,176,000
Hilton Hotels Corp., Notes	Ba1	7.625%	12/01/12		1,225		1,376,594
Host Marriott Corp., Gtd. Notes	Ba3	7.875%	08/01/08		150		156,000
Host Marriott Corp., Sr. Notes	Ba3	8.45%	12/01/08		44		45,870
Host Marriott LP, Gtd. Notes, Ser. G	Ba3	9.25%	10/01/07		300		335,250
Host Marriott LP, Gtd. Notes, Ser. I	Ba3	9.50%	01/15/07		225		250,313
Host Marriott LP, Sr. Notes	Ba3	7.125%	11/01/13		750		765,000
Host Marriott LP, Sr. Notes, Ser. E	Ba3	8.375%	02/15/06		650		693,062
Starwood Hotels & Resorts Worldwide, Inc., Gtd. Notes	Ba1	7.375%	05/01/07		950		1,026,000
Starwood Hotels & Resorts Worldwide, Inc., Gtd. Notes	Ba1	7.875%	05/01/12		475		534,375

							6,358,464

Manufacturing — 2.1%
BRL Universal Equipment LP, Ser. 2001-A, Sec’d. Notes	Ba3	8.875%	02/15/08		625		670,313
Dresser, Inc., Gtd. Notes	B2	9.375%	04/15/11		1,490		1,620,375
SPX Corp., Sr. Notes	Ba3	6.25%	06/15/11		650		667,875
SPX Corp., Sr. Notes	Ba3	7.50%	01/01/13		700		761,250
Tyco International Group SA, Gtd. Notes (Luxembourg)	Ba2	6.75%	02/15/11		1,425		1,556,812

							5,276,625

Marine — 0.4%
Great Lakes Dredge & Dock Co., Sr. Sub. Notes	B3	7.75%	12/15/13		1,000		1,028,750

Office Equipment & Supplies — 0.5%
Xerox Capital Europe PLC, Gtd. Notes (United Kingdom)	B1	5.875%	05/15/04		1,200		1,212,000

Oil & Gas Exploration & Production — 11.1%
Chesapeake Energy Corp., Gtd. Notes	Ba3	7.75%	01/15/15		150		162,750
Chesapeake Energy Corp., Gtd. Notes	Ba3	8.125%	04/01/11		151		168,086
Coastal Corp., Notes	Caa1	7.75%	06/15/10		150		141,562
Coastal Corp., Sr. Debs.	Caa1	7.75%	10/15/35		400		336,000
Dynegy Holdings, Inc., Sec’d. Notes	B3	9.875%	07/15/10		300		337,500
Dynegy Holdings, Inc., Sec’d. Notes	B3	10.125%	07/15/13		500		575,000
Dynegy-Roseton Danskammer, Gtd. Notes	Caa2	7.27%	11/08/10		950		964,250
Dynegy-Roseton Danskammer, Gtd. Notes	Caa2	7.67%	11/08/16		1,000		955,000
El Paso CGP Co., Debs.	Caa1	6.50%	06/01/08		500		454,375
El Paso CGP Co., Notes	Caa1	7.625%	09/01/08		2,400		2,307,000
El Paso Corp., Notes	Caa1	7.875%	06/15/12		150		141,750
El Paso Corp., Sr. Notes	Caa1	7.80%	08/01/31		675		574,594
El Paso Energy, Sr. Notes	Caa1	7.375%	12/15/12		1,750		1,610,000
El Paso Natural Gas Co., Sr. Notes	B1	7.625%	08/01/10		750		770,625
El Paso Production Holdings, Sr. Notes	B2	7.75%	06/01/13		1,300		1,280,500
GulfTerra Energy Partners LP, Gtd. Notes, Ser. B	B1	8.50%	06/01/10		383		434,705
GulfTerra Energy Partners LP, Gtd. Notes, Ser. B	B1	8.50%	06/01/11		67		75,375
Hanover Equipment Trust, Sec’d. Notes, Ser. A	B2	8.50%	09/01/08		1,650		1,749,000
Leviathan Gas Pipeline Partners LP, Gtd. Notes, Ser. B	B1	10.375%	06/01/09		450		488,250
Newpark Resources, Inc., Gtd. Notes, Ser. B	B2	8.625%	12/15/07		575		595,125
NRG Energy, Inc.(h)	B2	1.00%	05/08/10		1,000		994,238
NRG Energy, Inc., Sec’d. Notes	B2	8.00%	12/15/13		1,075		1,130,094
Parker Drilling Co., Sr. Notes	B2	9.625%	10/01/13		1,000		1,040,000
Pride International, Inc., Sr. Notes	Ba2	9.375%	05/01/07		542		558,260
Sesi LLC, Gtd. Notes	B1	8.875%	05/15/11		800		872,000
Sonat, Inc., Notes	Caa1	7.625%	07/15/11		300		277,875
The Williams Cos., Inc.	B3	8.75%	03/15/32		600		678,000
The Williams Cos., Inc., Notes	B3	7.875%	09/01/21		500		527,500
The Williams Cos., Inc., Notes	B3	8.125%	03/15/12		2,050		2,275,500
The Williams Cos., Inc., Notes	B3	9.25%	03/15/04		850		860,625
The Williams Cos., Inc., Sr. Notes	B3	8.625%	06/01/10		975		1,094,437

SEE NOTES TO FINANCIAL STATEMENTS.

B102




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Oil & Gas Exploration & Production (cont’d.)
TransMontaigne, Inc., Sr. Sub. Notes	B3	9.125%	06/01/10	$	500	$	536,250
Vintage Petroleum, Inc., Sr. Notes	Ba3	8.25%	05/01/12		250		271,875
Vintage Petroleum, Inc., Sr. Sub. Notes	B1	7.875%	05/15/11		940		991,700
Vintage Petroleum, Inc., Sr. Sub. Notes	B1	9.75%	06/30/09		300		315,750
Western Gas Resources, Inc., Gtd. Notes	Ba3	10.00%	06/15/09		975		1,048,125

							27,593,676

Printing & Publishing — 2.9%
American Media Operations, Inc., Gtd. Notes	B2	8.875%	01/15/11		200		217,000
American Media Operations, Inc., Gtd. Notes, Ser. B	B2	10.25%	05/01/09		1,225		1,306,156
Cadmus Communications Corp., Gtd. Notes	B2	9.75%	06/01/09		750		800,625
Dex Media West LLC, Sr. Notes	B2	8.50%	08/15/10		225		250,594
Dex Media West LLC, Sr. Sub. Notes	B3	9.875%	08/15/13		725		842,812
Garden State Newspapers, Inc., Sr. Sub. Notes	B2	8.625%	07/01/11		775		823,438
Hollinger International Publishing, Inc., Sr. Notes	B2	9.00%	12/15/10		850		903,125
Houghton Mifflin Co., Sr. Notes	B2	8.25%	02/01/11		225		240,750
Mail-Well I Corp., Gtd. Notes	B1	9.625%	03/15/12		760		843,600
PRIMEDIA, Inc., Sr. Notes	B3	8.00%	05/15/13		1,000		1,020,000

							7,248,100

Real Estate Investment Trust — 2.1%
Choctaw Resort Development Enterprise, Sr. Notes	B1	9.25%	04/01/09		775		840,875
Forest City Enterprises, Inc., Sr. Notes	Ba3	7.625%	06/01/15		1,000		1,061,250
La Quinta Properties, Inc.	Ba3	8.875%	03/15/11		950		1,050,937
Universal City Development Partners, Sr. Notes	B2	11.75%	04/01/10		650		760,500
Ventas Realty LP, Sr. Notes	Ba3	8.75%	05/01/09		1,450		1,591,375

							5,304,937

Retail — 1.0%
AmeriGas Partners LP, Sr. Notes	B2	8.83%	04/19/10		175		197,750
AmeriGas Partners LP, Sr. Notes	B2	10.00%	04/15/06		200		219,500
AmeriGas Partners LP, Sr. Notes, Ser. B	B2	8.875%	05/20/11		550		605,000
Ferrellgas Partners LP, Sr. Notes	B2	8.75%	06/15/12		1,425		1,567,500

							2,589,750

Steel & Metals — 0.1%
Compass Minerals Group, Inc., Gtd. Notes	B3	10.00%	08/15/11		125		140,000

Telecommunications — 8.4%
ACC Escrow Corp., Sr. Notes	B2	10.00%	08/01/11		1,300		1,449,500
American Tower Escrow Corp., Disc. Notes	B3	Zero	08/01/08		1,400		966,000
American Towers, Inc., Sr. Sub. Notes	B3	7.25%	12/01/11		150		152,625
Crown Castle International Corp., Sr. Notes	B3	10.75%	08/01/11		125		140,625
Insight Midwest LP, Sr. Notes	B2	9.75%	10/01/09		550		581,625
Insight Midwest LP, Sr. Notes	B2	10.50%	11/01/10		1,200		1,305,000
Nextel Communications, Inc., Sr. Notes	B2	6.875%	10/31/13		1,350		1,427,625
Nextel Communications, Inc., Sr. Notes	B2	7.375%	08/01/15		400		430,000
Northwestern Bell Telephone Co., Deb. Notes	Ba3	6.25%	01/01/07		300		303,000
Northwestern Bell Telephone Co., Deb. Notes	Ba3	7.75%	05/01/30		750		750,000
PanAmSat Corp., Gtd. Notes	Ba3	8.50%	02/01/12		1,600		1,776,000
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.25%	02/15/11		1,275		1,255,875
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.75%	02/15/31		75		69,000
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.90%	08/15/10		350		355,250
Qwest Corp., Notes(h)	Ba3	4.50%	06/30/07		1,100		1,130,053
Qwest Corp., Notes(h)	Ba3	6.95%	06/30/10		2,000		1,998,851
Qwest Corp., Notes	Ba3	7.20%	11/01/04		275		281,188
Qwest Corp., Notes	Ba3	8.875%	03/15/12		1,550		1,778,625
Rogers Cantel, Inc., Deb. (Canada)	Ba3	9.375%	06/01/08		700		732,375
Rogers Cantel, Inc., Sr. Notes (Canada)	Ba3	8.30%	10/01/07		150		154,500

SEE NOTES TO FINANCIAL STATEMENTS.

B103




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Telecommunications (cont’d.)
Rogers Communications, Inc., (Canada)	B2	2.00%	11/26/05	$	375	$	347,344
Rural Cellular Corp., Sr. Sub. Notes, Ser. B	Caa2	9.625%	05/15/08		750		731,250
Sprint Capital Corp., Gtd. Notes	Baa3	8.75%	03/15/32		575		679,299
Time Warner Telecom LLC, Sr. Notes	B3	9.75%	07/15/08		600		618,000
Triton PCS, Inc., Gtd. Notes	B2	8.50%	06/01/13		575		618,125
WorldCom, Inc.-WorldCom Group(a)	NR	8.25%	05/15/31		1,250		418,750
WorldCom, Inc.-WorldCom Group, Notes(a)	NR	6.95%	08/15/28		1,150		385,250

							20,835,735

Tobacco — 0.4%
DIMON, Inc., Gtd. Notes, Ser. B	Ba3	9.625%	10/15/11		610		680,150
DIMON, Inc., Sr. Notes	Ba3	7.75%	06/01/13		205		211,150

							891,300

Utilities — 6.7%
AES Corp., Sr. Notes	B3	8.875%	02/15/11		900		981,000
AES Corp., Sr. Sec’d. Notes	B2	8.75%	05/15/13		1,845		2,061,788
AES Ironwood LLC, Sec’d. Notes	B2	8.857%	11/30/25		1,369		1,458,484
Allegheny Energy Supply Co. LLC	B3	8.25%	04/15/12		1		848
Calpine Corp., Sec’d. Notes	B(g)	8.50%	07/15/10		700		682,500
Calpine Corp., Sec’d. Notes	B(g)	8.75%	07/15/13		300		292,500
CMS Energy Corp., Sr. Notes	B3	7.50%	01/15/09		200		206,000
CMS Energy Corp., Sr. Notes	B3	7.625%	11/15/04		175		180,250
CMS Energy Corp., Sr. Notes	B3	7.75%	08/01/10		450		473,063
CMS Energy Corp., Sr. Notes	B3	8.50%	04/15/11		250		270,000
CMS Energy Corp., Sr. Notes	B3	8.90%	07/15/08		1,000		1,085,000
CMS Energy Corp., Sr. Notes	B3	9.875%	10/15/07		250		278,750
Edison International, Inc., Notes	Ba2	6.875%	09/15/04		700		719,250
IPALCO Enterprises, Inc., Sec’d. Notes	Ba1	8.375%	11/14/08		750		838,125
IPALCO Enterprises, Inc., Sec’d. Notes	Ba1	8.625%	11/14/11		350		391,125
Peabody Energy Corp, Gtd. Notes	Ba3	6.875%	03/15/13		1,350		1,424,250
PSE&G Energy Holdings LLC, Notes	Ba3	7.75%	04/16/07		850		902,063
PSE&G Energy Holdings LLC, Sr. Notes	Ba3	8.50%	06/15/11		950		1,053,312
PSE&G Energy Holdings LLC, Sr. Notes	Ba3	8.625%	02/15/08		300		327,375
South Point Energy Center LLC, Gtd. Notes	B2	8.40%	05/30/12		1,206		1,157,618
Southern California Edison Co., 1st Mtge. Notes	Baa2	8.00%	02/15/07		625		714,844
TECO Energy, Inc., Sr. Notes	Ba1	7.50%	06/15/10		1,000		1,070,000

							16,568,145

Waste Management — 1.8%
Allied Waste North America, Inc., Gtd. Notes, Ser. B	Ba3	7.875%	01/01/09		300		312,750
Allied Waste North America, Inc., Gtd. Notes, Ser. B	Ba3	8.50%	12/01/08		1,310		1,457,375
Allied Waste North America, Inc., Gtd. Notes, Ser. B	Ba3	8.875%	04/01/08		585		655,200
Allied Waste North America, Inc., Gtd. Notes, Ser. B	Ba3	9.25%	09/01/12		1,000		1,135,000
Allied Waste North America, Inc., Gtd. Notes, Ser. B	B2	10.00%	08/01/09		400		432,000
Allied Waste North America, Inc., Sr. Notes	Ba3	7.875%	04/15/13		500		541,250

							4,533,575

TOTAL CORPORATE BONDS (cost $194,898,745)							206,754,707

FOREIGN GOVERNMENT OBLIGATIONS — 6.0%
Republic of Brazil, Ser. EI-L (Brazil)(d)	B2	2.563%	04/15/06		1,450		1,430,135
Republic of Brazil, Ser. L (Brazil)	B2	8.00%	04/15/14		369		363,438
Republic of Brazil, Ser. R (Brazil)	B2	8.00%	04/15/14		3,393		3,337,576
Republic of Brazil, Ser. RG (Brazil)(d)	B2	2.563%	04/15/06		320		315,616
Republic of Brazil (Brazil)	B2	10.00%	08/07/11		75		82,875
Republic of Brazil (Brazil)	B2	11.00%	08/17/40		925		1,015,188
Republic of Guatemala, Notes (Guatemala)	Ba2	9.25%	08/01/13		500		550,000
Republic of Panama (Panama)	Ba1	5.00%	07/17/14		570		536,138

SEE NOTES TO FINANCIAL STATEMENTS.

B104




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
FOREIGN GOVERNMENT OBLIGATIONS (cont’d.)
Republic of Panama (Panama)	Ba1	8.875%	09/30/27	$	1,100	$	1,155,000
Republic of Panama (Panama)	Ba1	9.375%	07/23/12		950		1,081,100
Republic of Panama (Panama)	Ba1	9.375%	04/01/29		50		56,250
Republic of Peru (Peru)	Ba3	5.00%	03/07/17		94		86,837
Republic of Peru (Peru)	Ba3	9.125%	01/15/08		650		763,750
Republic of Peru (Peru)	Ba3	9.125%	02/21/12		1,925		2,146,375
Republic of Ukraine (Ukraine)	NA	11.00%	03/15/07		490		546,356
Russian Federation (Russia)	Ba3	5.00%	03/31/30		1,650		1,582,350

							15,048,984

TOTAL FOREIGN GOVERNMENT OBLIGATIONS (cost $13,918,614)							15,048,984

TOTAL LONG-TERM BONDS (cost $208,817,359)							221,803,691


COMMON STOCK — 0.1%				Shares
Dobson Communications Corp., (Class “A” Stock)(f) (cost $127,248)					19,309		126,861


CONVERTIBLE PREFERRED STOCK
Dobson Communications Corp., 6.00% (cost $50,100)					300		54,000

TOTAL LONG-TERM INVESTMENTS (cost $208,994,707)							221,984,552

SHORT-TERM INVESTMENTS — 10.3%				Principal Amount (000)
CORPORATE BONDS — 6.8%
Federal Home Loan Mortgage Corp., Disc. Notes(e)	Aaa	1.075%	02/26/04	$	700		698,829
Federal National Mortgage Association, Disc. Notes(e)	Aaa	1.00%	02/04/04		11,000		10,989,611
Federal National Mortgage Association, Disc. Notes(e)	Aaa	1.01%	02/03/04		1,300		1,298,797
Shell Finance UK PLC	NR	1.055%	01/15/04		3,900		3,898,400

							16,885,637

COMMERCIAL PAPER — 1.7%
Danske Corp	P-1	1.07%	03/22/04		200		199,519
HBOS Treasury Services PLC, Sr. Notes (United Kingdom)	P-1	1.10%	02/24/04		2,800		2,795,380
UBS Finance (Delaware), Inc.	P-1	1.06%	01/21/04		1,200		1,199,293

							4,194,192

U.S. GOVERNMENT OBLIGATIONS
United States Treasury Bills(e)		0.91%	03/04/04		60		59,904

REPURCHASE AGREEMENT — 1.8%
State Street Bank & Trust Co., (cost $4,417,615)(b)		0.50%	1/02/04		4,418		4,417,615

TOTAL SHORT-TERM INVESTMENTS
(cost $25,557,348)							25,557,348

TOTAL INVESTMENTS — 99.7% (cost $234,552,055; Note 6)							247,541,900
OTHER ASSETS IN EXCESS OF LIABILITIES — 0.3%							708,002

NET ASSETS — 100.0%						$	248,249,902

SEE NOTES TO FINANCIAL STATEMENTS.

B105




		*SP PIMCO HIGH YIELD PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

The following abbreviations are used in portfolio descriptions:


NR		Not Rated by Moody’s or Standard & Poor’s

(a)	Represents issuer in default on interest payments, non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $4,417,738 due 1/2/04. The value of the collateral including accrued interest was $4,507,401. Collateralized by United States Treasury or federal agency obligations.

(c)

(d)	Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(e)	Rate quoted represents yield-to-maturity as of purchase date.

(f)	Non-income producing security.

(g)	Standard & Poor’s rating.

(h)	Loan participation agreement.

SEE NOTES TO FINANCIAL STATEMENTS.

B106




		*SP PIMCO TOTAL RETURN PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 43.7% LONG-TERM BONDS — 43.7%	Moody’s Rating (Unaudited)		Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

ASSET BACKED SECURITIES — 0.1%
Block Mortgage Finance, Inc., Series 1998-2(b)	Aaa		1.32	%	08/25/28	$	112	$	111,242
Brazos Student Loan Finance Corp., Series 1998-A(b)	Aaa		1.91	%	06/01/23		314		317,237
First Nationwide Trust, Series 2001-4	AAA	(c)	8.50	%	08/25/31		61		61,914
Wells Fargo Mortgage Backed Securities Trust, Series 2001-25(b)	Aaa		6.37	%	10/25/31		91		91,238

									581,631

COLLATERALIZED MORTGAGE OBLIGATIONS — 3.1%
Bear Stearns Adjustable Rate Mortgage Trust, Series 2002-05(b)	Aaa		5.98	%	06/25/32		910		942,295
Bear Stearns Adjustable Rate Mortgage Trust, Series 2002-11(b)	Aaa		5.65	%	02/25/33		1,442		1,452,686
Countrywide Home Loans, Series 2002-7(b)	Aaa		5.51	%	05/19/32		274		282,081
Federal Home Loan Mortgage Corp., Series 2504	AAA	(c)	5.25	%	04/15/26		700		704,069
Federal Home Loan Mortgage Corp., Series 2535	AAA	(c)	5.00	%	09/15/16		3,875		3,990,060
Federal National Mortgage Association, Series 2001-13	AAA	(c)	6.00	%	12/25/28		172		173,577
Federal National Mortgage Association, Series 2001-29	AAA	(c)	6.50	%	06/01/31		353		369,219
Federal National Mortgage Association, Series 2002-16	AAA	(c)	5.50	%	07/25/29		532		533,406
Federal National Mortgage Association, Series 2002-9	AAA	(c)	6.00	%	07/25/28		611		612,942
Federal National Mortgage Association, Series 2003-W1	AAA	(c)	6.50	%	12/25/42		1,814		1,926,216
G-Wing, Ltd., Series 2001-WH1A(b)	BBB	(c)	3.82	%	11/06/11		146		144,949
Government Lease Trust, Series 1999-C1A	NR		4.00	%	05/18/11		1,500		1,422,112
Government National Mortgage Association, Series 2000-14(b)	Aaa		1.80	%	02/16/30		80		80,343
Homeside Mortgage Securities Trust, Series 2001-1(b)	Aaa	(c)	1.35	%	01/20/27		148		146,429
Indymac Arm Trust, Series 2001-H2(b)	Aaa		6.697	%	01/25/31		63		64,314
Master Asset Securitization Trust, Series 2003-7	AAA	(c)	5.50	%	09/25/33		5,898		5,872,841
Mellon Residential Funding Corp., Series 1999-TBC2(b)	NR		3.79	%	07/25/29		99		98,611
Mortgage Capital Funding, Inc., Series 1996-MC1	AAA	(c)	7.90	%	02/15/06		232		253,149
Residential Asset Securitization Trust, Series 1999-A8	Aaa		7.875	%	01/25/30		57		57,808
Residential Funding Mortgage Securities I, Series 2003-S9	Aaa		6.50	%	03/25/32		2,345		2,417,672
Structured Asset Mortgage Investments, Inc., Series 1999-1(b)	AAA	(c)	6.53	%	06/25/29		129		132,353
Washington Mutual, Inc., Series 2002-AR2(b)	Aaa		3.159	%	02/27/34		2,526		2,565,857
Washington Mutual, Inc., Series 2003-AR1(b)	Aaa		5.43	%	02/25/33		1,495		1,522,461

									25,765,450

CORPORATE BONDS — 5.1%
Airlines
United Air Lines, Inc., Pass-Through Certs. Series A-4(a)	Ca		9.21	%	01/21/17		200		81,616

Financial Services — 2.3%
CIT Group, Inc., M.T.N.(b)	A2		2.67	%	03/01/04		1,250		1,252,794
Ford Motor Credit Co.	A3		6.70	%	07/16/04		4,000		4,102,772
Ford Motor Credit Co.	A3		7.25	%	10/25/11		2,250		2,440,269
Ford Motor Credit Co., M.T.N.(b)	A3		1.98	%	03/08/04		1,700		1,701,106
General Motors Acceptance Corp.	A3		6.875	%	09/15/11		2,500		2,692,818
General Motors Acceptance Corp., M.T.N.(b)	A3		1.52	%	07/21/04		1,000		1,000,138
General Motors Acceptance Corp., M.T.N.(b)	A3		2.41	%	10/20/05		2,600		2,619,523
PEMEX Master Trust	Baa1		7.375	%	12/15/14		300		320,250
PEMEX Master Trust	Baa1		8.625	%	02/01/22		500		553,750
PEMEX Master Trust	Baa1		9.125	%	10/13/10		2,000		2,375,000

									19,058,420

Metals & Mining — 0.5%
Alcan Corp.(b)	Baa1		1.43%		12/08/04		4,000		3,989,536

Oil & Gas — 0.8%
El Paso Corp.	Caa1		7.00%		05/15/11		200		184,500
El Paso Corp.	Caa1		7.125%		05/06/09		EUR1,200		1,362,259
El Paso Energy Corp., M.T.N.	Caa1		7.75%		01/15/32	$	2,240		1,909,600

SEE NOTES TO FINANCIAL STATEMENTS.

B107




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

Oil & Gas (cont’d.)
El Paso Energy Corp., M.T.N.	Caa1	7.80	%	08/01/31	$	1,250	$	1,064,062
Petroleos Mexicanos, (Mexico)	Baa1	9.25	%	03/30/18		1,700		1,980,500
The Williams Cos., Inc.	B3	7.50	%	01/15/31		500		506,250

								7,007,171

Telecommunications — 0.5%
AT&T Corp.(f)	Baa2	8.05	%	11/15/11		500		575,490
Qwest Capital Funding, Inc.	Caa2	7.25	%	02/15/11		200		197,000
Qwest Corp.	Ba3	8.875	%	03/15/12		2,650		3,040,875

								3,813,365

Utility – Electric — 0.6%
Entergy Gulf States, Inc.(b)	Baa3	2.07	%	06/18/07		3,500		3,507,886
FirstEnergy Corp., Series C	Baa2	7.375	%	11/15/31		900		920,679
Texas Utilities Electric Co.	Baa1	8.25	%	04/01/04		1,000		1,015,630

								5,444,195

Waste Management — 0.4%
Waste Management, Inc.	Baa3	7.00	%	10/15/06		2,775		3,059,388

Total Corporate Bonds								42,453,691

FOREIGN GOVERNMENT BONDS — 8.1%
Federal Republic of Brazil, (Brazil)	B2	8.00	%	04/15/14		7,388		7,268,767
Federal Republic of Germany, (Germany)	Aaa	4.25	%	03/12/04		EUR12,520		15,856,083
Federal Republic of Germany, (Germany)	Aaa	4.50	%	07/04/09-01/04/13		25,650		33,663,334
Federal Republic of Panama, (Panama)	Ba1	8.25	%	04/22/08	$	1,800		1,980,000
Federal Republic of Panama, (Panama)	Ba1	8.875	%	09/30/27		750		787,500
Federal Republic of Peru, (Peru)	Ba3	9.125	%	01/15/08		500		587,500
Federal Republic of Peru, (Peru)	Ba3	9.875	%	02/06/15		2,500		2,900,000
Russian Federation, (Russia)	Ba3	5.00	%	03/31/30		3,250		3,116,750
United Mexican States, (Mexico)	Baa2	8.375	%	01/14/11		1,500		1,781,250

								67,941,184

MUNICIPAL BONDS — 5.6%
Arizona Edl. Ln. Marketing Corp., Edl. Ln. Rev., Series E(b)	Aaa	1.23	%	12/01/37		5,000		5,000,000
Brazos Higher Edl. Auth., Inc., Student Ln. Rev., Series A(b)	Aaa	1.07	%	12/01/36		3,100		3,100,000
California St., Rev. Antic. Wts., Ser. A	MIG1	2.00	%	06/16/04		5,900		5,912,626
Chicago, IlI., G.O., Proj. & Ref., Ser. A	Aaa	5.00	%	01/01/41		300		304,644
Clark Cnty. Nev., Bond Bank, G.O., M.B.I.A.	Aaa	5.00	%	06/01/32		3,000		3,057,390
Dallas, TX Indpt. Sch. Dist.	Aaa	5.00	%	02/15/21		2,000		2,095,720
Educational Funding South, Inc., Auction Rate, Ser. A(b)	Aaa	1.18	%	06/01/38		3,000		3,000,000
Georgia St., Rd. & Thrwy. Auth. Rev.	Aaa	5.00	%	03/01/21		700		738,087
Golden St. Tobacco Securitization Corp., Ser. 2003-A-1	Baa2	6.25	%	06/01/33		2,500		2,390,000
Golden St. Tobacco Securitization Corp., Ser. 2003-A-1	Baa2	6.75	%	06/01/39		2,000		1,967,580
Illinois St., G.O., Taxable Pension	Aa3	5.10	%	06/01/33		6,300		5,762,484
Massachusetts St. Wtr. Res. Auth., Ser. J, F.S.A.	Aaa	5.00	%	08/01/32		2,500		2,560,175
Salt River Proj., Ariz., Agricultural Impvt. & Pwr. Dist. Elec. Sys. Rev., Ser. B	Aa2	4.75	%	01/01/32		2,000		2,004,360
South Carolina St. Hwy., Ser. B	Aaa	5.00	%	04/01/17		2,000		2,167,940
Tobacco Settlement Fin. Corp.	Baa2	6.375	%	06/01/32		2,000		1,914,820
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A	Baa2	6.25	%	06/01/42		400		362,012
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A-1	A3	5.50	%	06/01/15		2,000		2,146,000
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A	Baa2	6.125	%	06/01/32		1,205		1,100,105
Triborough Bridge & Tunnel Auth., NY, Rev., Rfdg., Ser. B	Aa3	5.00	%	11/15/32		1,860		1,897,293

								47,481,236

SEE NOTES TO FINANCIAL STATEMENTS.

B108




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 13.1%
United States Treasury Bonds		5.375	%	02/15/31	$	5,200	$	5,422,830
United States Treasury Bonds		6.00	%	02/15/26		9,800		10,867,661
United States Treasury Bonds		7.50	%	11/15/16		12,500		15,914,063
United States Treasury Bonds		8.125	%	08/15/19		150		202,617
United States Treasury Notes		1.625	%	10/31/05		7,950		7,937,582
United States Treasury Notes(e)		3.375	%	01/15/07		18,859		20,429,073
United States Treasury Notes		3.50	%	01/15/11		5,155		5,793,440
United States Treasury Notes		3.625	%	01/15/08		18,323		20,263,615
United States Treasury Strip I/O		zero		02/15/15-02/15/22		54,950		22,358,712
United States Treasury Strip P/O		zero		02/15/27		3,400		952,398

								110,141,991

U.S. GOVERNMENT MORTGAGE BACKED SECURITIES — 8.6%
Federal National Mortgage Association		4.00	%	07/01/18-10/01/18		48,401		47,226,260
Federal National Mortgage Association(b)		4.191	%	05/01/36		201		204,417
Federal National Mortgage Association		4.50	%	06/01/33-09/01/33		11,609		11,115,289
Federal National Mortgage Association		4.872	%	12/01/36		4,892		4,977,703
Federal National Mortgage Association		5.00	%	01/01/18		106		108,284
Federal National Mortgage Association		5.936	%	11/01/11		978		1,064,898
Federal National Mortgage Association		6.00	%	04/01/13-01/01/23		6,272		6,575,890
Government National Mortgage Association(b)		4.375	%	04/20/25-05/20/25		151		154,408
Government National Mortgage Association		4.50	%	09/15/33		61		58,114
Government National Mortgage Association(b)		4.75	%	08/20/24-08/20/27		461		471,147
Government National Mortgage Association		8.00	%	12/15/30-04/15/31		327		356,284
Government National Mortgage Association		9.00	%	07/15/30-10/15/30		18		20,381

								72,333,075

TOTAL LONG-TERM BONDS								366,698,258


WARRANTS(j)				Expiration Date	Shares
Mexico Value, Ser. B				06/01/04		1,000		7,500
Mexico Value, Ser. C				06/01/05		1,000		1,000
Mexico Value, Ser. D				06/30/06		1,000		1,000
Mexico Value, Ser. E				06/01/07		1,000		600

TOTAL WARRANTS								10,100

TOTAL LONG-TERM INVESTMENTS (cost $359,580,718)								366,708,358


SHORT-TERM INVESTMENTS — 56.0%	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)
CORPORATE OBLIGATIONS — 18.4%
ABN-Amro Bank NA	P-1	1.07	%	02/17/04	$	1,800		1,797,485
Danske Corp.	P-1	1.07	%	03/22/04		20,000		19,951,850
General Electric Capital Corp.	P-1	1.09	%	02/09/04		15,000		14,982,287
General Electric Capital Corp.	P-1	1.12	%	03/04/04		2,400		2,395,296
Kraft Foods, Inc.	P2	1.97	%	02/27/04		5,800		5,800,250
National Australia Funding, Inc.	NR	1.075	%	02/10/04		15,800		15,781,128
Nestle Capital Corp.	NR	1.06	%	02/12/04		20,000		19,975,267
Rabobank USA Financial Corp.	NR	1.07	%	01/20/04		15,000		14,991,529
Shell Finance BV (Netherlands)	NR	1.09	%	03/08/04		20,000		19,959,428
Toyota Motor Credit Corp.	NR	1.06	%	01/06/04-01/13/04		22,800		22,795,407
UBS Finance, Inc.	P-1	1.06	%	01/21/04		16,000		15,990,578

								154,420,505

SEE NOTES TO FINANCIAL STATEMENTS.

B109




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003



SHORT-TERM INVESTMENTS (Continued)	Interest Rate	Maturity Date	Principal Amount (000)	Value (Note 2)

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 31.3%
Federal Home Loan Bank	1.025%	01/23/04	$50,000	$	49,968,680
Federal Home Loan Mortgage Corp.	zero	01/08/04	13,100		13,097,300
Federal National Mortgage Association	1.00%	02/04/04	8,900		8,891,595
Federal National Mortgage Association	1.01%	02/03/04	60,300		60,244,172
United States Treasury Bills	zero	06/10/04	30,000		29,867,175
United States Treasury Bills	0.852%	03/18/04	500		499,089
United States Treasury Bills	0.88%	03/11/04	1,250		1,247,861
United States Treasury Bills	0.882%	03/18/04	5,650		5,639,335
United States Treasury Bills	0.885%	03/18/04	5,340		5,329,897
United States Treasury Bills	0.895%	03/11/04	2,250		2,246,084
United States Treasury Bills	0.955%	06/17/04	30,000		29,866,300
United States Treasury Bills(i)	0.995%	04/08/04	26,100		25,984,149
United States Treasury Bills	1.015%	06/03/04	30,000		29,869,742

					262,751,379

REPURCHASE AGREEMENT — 6.3%
State Street Bank & Trust Co., (d) (cost $52,274,066)	0.50%	01/02/04	52,274		52,274,066

OUTSTANDING OPTIONS PURCHASED
Put Options
			Contracts
Euro Futures, expiring 3/15/04 @ $ 96.25			200		1,250
Euro Futures, expiring 6/14/04 @ $ 94.50			400		2,500

Total option — cost					3,750

TOTAL SHORT-TERM INVESTMENTS (cost $469,451,650)					469,449,700

TOTAL INVESTMENTS BEFORE OUTSTANDING OPTIONS WRITTEN AND INVESTMENTS SOLD SHORT (cost $829,032,368; Note 6)					836,158,058

OUTSTANDING OPTIONS WRITTEN(a) — (0.5%)
Call Options — (0.2%)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 5.0%			11,500,000		(445,912	)
Swap Option 3 month LIBOR, expiring 10/7/04 @ 4.0%			6,200,000		(40,071	)
Swap Option 3 month LIBOR, expiring 3/3/04 @ 3.25%			24,800,000		(47,318	)
Swap Option 3 month LIBOR, expiring 7/3/06 @ 4.0%			35,300,000		(381,946	)
Swap Option 3 month LIBOR, expiring 9/23/05 @ 4.0%			59,200,000		(682,162	)

					(1,597,409	)

Put Options — (0.3%)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 7.0%			3,500,000		(16,527	)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 7.0%			8,000,000		(37,776	)
Swap Option 3 month LIBOR, expiring 10/7/04 @ 6.0%			6,200,000		(82,820	)
Swap Option 3 month LIBOR, expiring 7/3/06 @ 6.0%			35,300,000		(1,258,727	)
Swap Option 3 month LIBOR, expiring 9/23/05 @ 7.0%			59,200,000		(762,911	)

					(2,158,761	)

TOTAL OUTSTANDING OPTIONS WRITTEN (premium received $4,862,208)					(3,756,170	)

SEE NOTES TO FINANCIAL STATEMENTS.

B110




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003



SHORT-TERM INVESTMENTS (Continued)	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 2)
INVESTMENTS SOLD SHORT — (19.5%)
U.S. Government & Agency Obligations
Federal National Mortgage Association	5.50%	TBA	$	(63,700	)	$	(64,971,706	)
United States Treasury Notes	3.00%	11/15/07		(6,300	)		(6,354,142	)
United States Treasury Notes	3.625%	05/15/13		(62,400	)		(59,979,566	)
United States Treasury Notes	4.25%	08/15/13		(15,550	)		(15,569,438	)
United States Treasury Notes	4.375%	05/15/07		(5,500	)		(5,824,198	)
United States Treasury Notes	5.50%	05/15/09		(9,900	)		(11,009,493	)

TOTAL INVESTMENTS SOLD SHORT (proceeds received $162,401,247)							(163,708,543	)

TOTAL INVESTMENTS, NET OF OUTSTANDING OPTIONS WRITTEN AND INVESTMENTS SOLD SHORT — 79.7% (cost $661,768,913)							668,693,345
VARIATION MARGIN ON OPEN FUTURES CONTRACTS(g)							511,232


UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS — (0.2%)(h)		(1,901,907	)
OTHER ASSETS IN EXCESS OF OTHER LIABILITIES — 20.5%		171,821,902

TOTAL NET ASSETS — 100.0%	$	839,124,572

The following abbreviations are used in portfolio descriptions:


F.S.A.		Financial Security Assurance
G.O.		General Obligation
I/O		Interest Only
M.B.I.A.		Municipal Bond Insurance Association
M.T.N.		Medium Term Note
NR		Not Rated by Moody’s or Standard & Poor’s
P/O		Principal Only
TBA		Securities purchased on a forward commitment basis

(a)	Represents issuer in default on interest payments, non-income producing security.

(b)	Rate shown reflects current rate on variable rate instrument.

(c)	Standard & Poor’s rating.

(d)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $52,275,518 due 1/2/04. The value of the collateral including accrued interest was $53,319,903. The collateral consists of US Treasury or Federal Agency obligations.

(e)	Security segregated as collateral for futures contracts.

(f)	Increase/decrease in rate variable upon increase/decrease in Moody’s or Standard & Poor’s rating.

SEE NOTES TO FINANCIAL STATEMENTS.

B111




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

(g)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
95	Euribor	Dec 04	$	29,095,779	$	29,148,235	$	52,456
435	German 10 Yr Fed Bonds	Mar 04		61,095,856		62,067,530		971,674
19	Fin 5 Yr	Mar 04		2,632,149		2,648,925		16,776
106	LIBOR	Dec 04		22,642,057		22,588,084		(53,973	)
162	LIBOR	Sep 04		34,523,471		34,586,663		63,192
17	LIBOR	Mar 04		3,667,125		3,644,301		(22,824	)
18	LIBOR	Jun 04		3,875,588		3,851,824		(23,764	)
60	LIBOR	Mar 05		12,934,492		12,768,254		(166,238	)
14	Eurodollars	Dec 04		3,412,850		3,424,400		11,550
86	Eurodollars	Jun 05		20,816,503		20,857,150		40,647
223	Eurodollars	Sep 05		53,812,738		53,879,588		66,850
54	Eurodollars	Dec 05		12,995,775		13,005,900		10,125
66	Eurodollars	Mar 07		15,671,700		15,719,550		47,850
2,947	U.S. Treasury 10 Yr Notes	Mar 04		326,814,834		330,846,797		4,031,963
252	U.S. Treasury 5 Yr Notes	Mar 04		27,921,303		28,129,500		208,197

								5,254,481

Short Positions:
282	Eurodollars	Jun 05		68,158,058		68,392,050		(233,992	)
22	Eurodollars	Mar 05		5,354,525		5,358,650		(4,125	)
321	U.S. Treasury Bonds	Mar 04		34,581,243		35,089,313		(508,070	)

								(746,187	)

							$	4,508,294

(h)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Forward Foreign Currency Contract	Value at Settlement Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Bought:
Euro expiring 1/7/04	$	4,046,708	$	4,169,191	$	122,483
Japanese Yen expiring 1/15/04		381,587		383,911		2,324

						124,807

Sold:
Euro expiring 1/7/04	$	51,386,765	$	53,344,453		(1,957,688	)
Pound Sterling expiring 1/23/04		1,996,661		2,065,687		(69,026	)

						(2,026,714	)

					$	(1,901,907	)

(i)	Rate quoted represents yield-to-maturity as of purchase date.

(j)	Non-income producing security.

SEE NOTES TO FINANCIAL STATEMENTS.

B112




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 91.7%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Airlines — 0.7%
AMR Corp.(a)	91,200	$	1,181,040

Automobiles — 0.5%
Harley-Davidson, Inc.	17,100		812,763

Biotechnology — 5.6%
Alkermes, Inc.(a)	114,600		1,547,100
Angiotech Pharmaceuticals, Inc. (Canada)(a)	15,600		717,600
Biogen Idec, Inc.(a)	59,800		2,199,444
Gilead Sciences, Inc.(a)	55,000		3,197,700
IDEXX Laboratories, Inc.(a)	22,900		1,059,812
MedImmune, Inc.(a)	30,500		774,700

			9,496,356

Capital Markets — 6.1%
E*TRADE Financial Corp.(a)	369,000		4,667,850
Eaton Vance Corp.	67,000		2,454,880
Legg Mason, Inc.	26,500		2,045,270
Merrill Lynch & Co., Inc.	20,400		1,196,460

			10,364,460

Commercial Services & Supplies — 6.0%
Apollo Group, Inc. (Class “A” Stock)(a)	46,800		3,182,400
ChoicePoint, Inc.(a)	44,100		1,679,769
CoStar Group, Inc.(a)	35,300		1,471,304
Monster Worldwide, Inc.(a)	180,600		3,965,976

			10,299,449

Communications Equipment — 0.4%
Advanced Fibre Communications, Inc.(a)	33,500		675,025

Computers & Peripherals — 0.8%
Network Appliance, Inc.(a)	49,900		1,024,447
Seagate Technology (Cayman Islands)	13,400		253,260

			1,277,707

Electronic Equipment & Instruments — 7.7%
Agilent Technologies, Inc.(a)	77,600		2,269,024
Amphenol Corp.(a)	53,500		3,420,255
Symbol Technologies, Inc.	234,700		3,964,083
Tektronix, Inc.	56,100		1,772,760
Waters Corp.(a)	48,500		1,608,260

			13,034,382

Energy Equipment & Services — 1.5%
BJ Services Co.(a)	72,800		2,613,520

Healthcare Equipment & Supplies — 2.5%
INAMED Corp.(a)	60,750		2,919,645
VISX, Inc.(a)	58,900		1,363,535

			4,283,180

Healthcare Providers & Services — 4.3%
Andrx Corp.(a)	70,000		1,682,800
Caremark Rx, Inc.(a)	46,800		1,185,444
WebMD Corp.(a)	491,100		4,414,989

			7,283,233

Household Durables — 1.2%
Harman International Industries, Inc.	5,000		369,900
Yankee Candle Co., Inc.(a)	60,700		1,658,931

			2,028,831


COMMON STOCKS		Value (Note 2)
Continued	Shares	Value (Note 2)
Internet & Catalog Retail — 1.6%
InterActiveCorp(a)	80,653	$	2,736,556

Internet Software & Services — 4.6%
Ask Jeeves, Inc.(a)	90,400		1,638,048
DoubleClick, Inc.(a)	311,400		3,182,508
RealNetworks, Inc.(a)	240,800		1,374,968
Yahoo!, Inc.(a)	37,700		1,702,909

			7,898,433

IT Services — 5.3%
Ceridian Corp.(a)	111,600		2,336,904
CheckFree Corp.(a)	113,900		3,149,335
DST Systems, Inc.(a)	41,600		1,737,216
Unisys Corp.(a)	126,900		1,884,465

			9,107,920

Machinery — 1.9%
Pall Corp.	120,700		3,238,381

Media — 5.7%
Entercom Communications Corp.(a)	33,500		1,774,160
Hughes Electronics Corp.(a)	84,544		1,399,203
Interpublic Group of Cos., Inc.(a)	134,900		2,104,440
Lin TV Corp. (Class “A” Stock)(a)	44,500		1,148,545
Univision Communications, Inc. (Class “A” Stock)(a)	40,000		1,587,600
Westwood One, Inc.(a)	48,100		1,645,501

			9,659,449

Pharmaceuticals — 8.7%
Allergan, Inc.	21,000		1,613,010
Barr Laboratories, Inc.(a)	25,450		1,958,378
IVAX Corp.(a)	138,100		3,297,828
Medicis Pharmaceutical Corp. (Class “A” Stock)	29,300		2,089,090
Sepracor, Inc.(a)	59,500		1,423,835
SICOR, Inc.(a)	57,200		1,555,840
Watson Pharmaceuticals, Inc.(a)	64,000		2,944,000

			14,881,981

Real Estate — 1.5%
Friedman, Billings, Ramsey Group, Inc. (Class “A” Stock)	114,100		2,633,428

Road & Rail — 0.5%
Norfolk Southern Corp.	34,100		806,465

Semiconductors & Semiconductor Equipment — 11.7%
Agere Systems, Inc. (Class “B” Stock)(a)	216,300		627,270
Altera Corp.(a)	87,000		1,974,900
AMIS Holdings, Inc.(a)	82,400		1,506,272
FormFactor, Inc.(a)	27,800		550,440
GlobespanVirata, Inc.(a)	223,800		1,315,944
Intel Corp.	35,400		1,139,880
International Rectifier Corp.(a)	84,200		4,160,322
KLA-Tencor Corp.(a)	56,800		3,332,456
Lam Research Corp.(a)	48,400		1,563,320
Linear Technology Corp.	31,600		1,329,412
Marvell Technology Group, Ltd.(a)	62,600		2,374,418

			19,874,634

SEE NOTES TO FINANCIAL STATEMENTS.

B113




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Software — 7.2%
Amdocs, Ltd. (United Kingdom)(a)	139,900	$	3,144,952
Fair Issac & Co., Inc.	44,400		2,182,704
Intuit, Inc.(a)	37,500		1,984,125
Mercury Interactive Corp.(a)	16,000		778,240
PeopleSoft, Inc.(a)	58,300		1,329,240
Synopsys, Inc.(a)	85,300		2,879,728

			12,298,989

Specialty Retail — 2.8%
Linens ‘n Things, Inc.(a)	56,100		1,687,488
PETCO Animal Supplies, Inc.(a)	47,400		1,443,330
Staples, Inc.(a)	61,900		1,689,870

			4,820,688

Textiles & Apparel — 0.5%
Tommy Hilfiger Corp.(a)	57,100		845,651

Trading Companies & Distributors — 1.1%
Fastenal Co.	38,700		1,932,678

Wireless Telecommunication Services — 1.3%
Nextel Partners, Inc. (Class “A” Stock)(a)	161,200		2,168,140

TOTAL LONG-TERM INVESTMENTS (cost $141,118,199)			156,253,339


		Value (Note 2)
	Shares	Value (Note 2)
SHORT-TERM INVESTMENT — 7.7%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series (cost $13,083,530; Note 4)	13,083,530	$	13,083,530

TOTAL INVESTMENTS — 99.4% (cost $154,201,729; Note 6)			169,336,869
OTHER ASSETS IN EXCESS OF LIABILITIES — 0.6%			1,004,169

NET ASSETS — 100%		$	170,341,038

(a)	Non-income producing security.

SEE NOTES TO FINANCIAL STATEMENTS.

B114




		*SP SMALL/MID CAP VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.8%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.3%
Getty Images, Inc.(a)	15,600	$	782,028

Aerospace/Defense — 0.8%
DRS Technologies, Inc.(a)	790		21,946
Goodrich Corp.	42,700		1,267,763
United Defense Industries, Inc.(a)	23,000		733,240

			2,022,949

Agricultural Products & Services — 0.3%
Delta & Pine Land Co.	27,800		706,120

Airlines — 0.1%
Alaska Air Group, Inc.(a)	5,800		158,282

Apparel — 0.6%
OshKosh B’Gosh, Inc. (Class “A” Stock)	37,000		794,020
Russell Corp.	20,600		361,736
Wolverine World Wide, Inc.	22,100		450,398

			1,606,154

Appliances & Home Furnishings — 0.3%
Applica, Inc.	65,200		495,520
Kirkland’s, Inc.(a)	10,600		187,196

			682,716

Autos–Cars & Trucks — 2.4%
American Axle & Manufacturing Holdings, Inc.(a)	28,800		1,164,096
CarMax, Inc.(a)	14,900		460,857
Coachmen Industries, Inc.	40,880		740,337
Lear Corp.	22,200		1,361,526
Lithia Motors, Inc. (Class “A” Stock)	16,200		408,402
Midas, Inc.(a)	40,000		572,000
Monaco Coach Corp.(a)	6,600		157,080
Monro Muffler Brake, Inc.(a)	24,400		488,244
Superior Industries International, Inc.	4,000		174,080
United Auto Group, Inc.	13,500		422,550

			5,949,172

Banks and Savings & Loans — 11.2%
Alabama National BanCorp.	6,400		336,320
Bank of Hawaii Corp.	48,400		2,042,480
Boston Private Financial Holdings, Inc.	7,200		178,848
City National Corp.	31,700		1,969,204
Colonial BancGroup, Inc.	43,200		748,224
Commercial Federal Corp.	6,500		173,615
Community Bank System, Inc.	7,800		382,200
East West Bancorp, Inc.	19,200		1,030,656
First Niagara Financial Group, Inc.	45,067		671,949
FirstFed Financial Corp.(a)	7,700		334,950
FirstMerit Corp.	39,600		1,068,012
Hancock Holding Co.	13,600		742,152
Harbor Florida Bancshares, Inc.	28,100		834,851
Hawthorne Financial Corp.(a)	18,000		503,640
Huntington Bancshares, Inc.	13,900		312,750
IBERIABANK Corp.	12,500		737,500
IndyMac Bancorp, Inc.	57,700		1,718,883
Investors Financial Services Corp.	16,100		618,401
NetBank, Inc.	74,800		998,580
New York Community Bancorp, Inc.	21,200		806,660
Popular, Inc.	19,600		880,824


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Banks and Savings & Loans (cont’d.)
PrivateBancorp, Inc.	4,900	$	223,048
Provident Financial Services, Inc.	24,000		453,600
Republic Bancshares, Inc.	11,400		358,758
Santander BanCorp.	29,600		720,760
Silicon Valley Bancshares, Inc.(a)	31,500		1,136,205
Southwest Bancorp of Texas, Inc.	27,400		1,064,490
Southwest Bancorp, Inc.	35,300		631,164
Sovereign Bancorp, Inc.	75,600		1,795,500
Texas Regional Bancshares, Inc. (Class “A” Stock)	24,100		891,700
UCBH Holdings, Inc.	21,700		845,649
Valley National Bancorp	44,580		1,301,736
W Holding Co., Inc.	46,665		868,435
Webster Financial Corp.	14,700		674,142

			28,055,886

Biotechnology — 0.3%
Protein Design Labs, Inc.(a)	38,400		687,360

Business Services — 1.4%
infoUSA, Inc.(a)	97,900		726,418
Manpower, Inc.	28,700		1,351,196
MPS Group, Inc.(a)	95,600		893,860
National Processing, Inc.(a)	24,800		584,040

			3,555,514

Chemicals — 4.8%
Arch Chemicals, Inc.	45,700		1,172,662
Cabot Microelectronics Corp.(a)	15,500		759,500
Cytec Industries, Inc.(a)	41,800		1,604,702
Ferro Corp.	41,700		1,134,657
Georgia Gulf Corp.	27,700		799,976
IMC Global, Inc.	51,800		514,374
Ionics, Inc.(a)	22,100		703,885
Lyondell Chemical Co.	63,200		1,071,240
Methanex Corp. (Canada)	17,000		190,910
Millennium Chemicals, Inc.	103,100		1,307,308
Minerals Technologies, Inc.	6,300		373,275
Olin Corp.	45,600		914,736
PolyOne Corp.(a)	230,200		1,470,978

			12,018,203

Collectibles & Gifts — 0.2%
Action Performance Cos., Inc.	27,300		535,080

Commercial Services — 0.8%
Angelica Corp.	21,700		477,400
Insurance Auto Auctions, Inc.(a)	29,100		379,755
Labor Ready, Inc.(a)	35,700		467,670
Waste Connections, Inc.(a)	16,600		626,982

			1,951,807

Computer Software & Services — 3.2%
Autodesk, Inc.	44,300		1,088,894
Avocent Corp.(a)	27,900		1,018,908
Ceridian Corp.(a)	39,000		816,660
Diebold, Inc.	8,900		479,443
Electronics for Imaging, Inc.(a)	27,900		725,958
Maxtor Corp.(a)	55,300		613,830
NetScreen Technologies, Inc.(a)	8,300		205,425

SEE NOTES TO FINANCIAL STATEMENTS.

B115




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Computer Software & Services (cont’d.)
RadiSys Corp.(a)	21,990	$	370,751
SonicWALL, Inc.(a)	74,500		581,100
Storage Technology Corp.(a)	40,000		1,030,000
Tyler Technologies, Inc.	52,800		508,464
United Online, Inc.(a)	25,650		430,664
Vastera, Inc.(a)	21,700		86,800

			7,956,897

Construction — 3.4%
Chicago Bridge & Iron Co.	31,100		898,790
D.R. Horton, Inc.	25,600		1,107,456
Fluor Corp.	11,100		440,004
KB HOME	17,900		1,298,108
Martin Marietta Materials, Inc.	33,600		1,578,192
Pulte Homes, Inc.	5,400		505,548
Ryland Group, Inc.	18,100		1,604,384
Standard Pacific Corp.	21,400		1,038,970

			8,471,452

Consumer Products — 0.2%
Alberto-Culver Co. (Class “B” Stock)	10,100		637,108

Containers — 1.8%
Ball Corp.	11,900		708,883
Owens-Illinois, Inc.(a)	76,000		903,640
Packaging Corp. of America	62,200		1,359,692
Pactiv Corp.(a)	35,900		858,010
Silgan Holdings, Inc.(a)	18,300		779,397

			4,609,622

Distribution & Wholesalers — 2.2%
Bell Microproducts, Inc.(a)	74,200		672,252
Fastenal Co.	13,200		659,208
Ingram Micro, Inc. (Class “A” Stock)(a)	44,100		701,190
NBTY, Inc.	18,700		502,282
SCP Pool Corp.(a)	25,850		844,778
Tech Data Corp.(a)	37,400		1,484,406
United Natural Foods, Inc.(a)	19,100		685,881

			5,549,997

Diversified Manufacturing Operations — 3.1%
Actuant Corp. (Class “A” Stock)(a)	31,400		1,136,680
CUNO, Inc.(a)	10,462		471,104
ESCO Technologies, Inc.(a)	11,720		511,578
Pentair, Inc.	45,400		2,074,780
Steel Dynamics, Inc.(a)	35,800		840,942
Terex Corp.(a)	50,500		1,438,240
Thermo Electron Corp.(a)	48,100		1,212,120

			7,685,444

Drugs & Medical Supplies — 3.1%
Alkermes, Inc.(a)	29,900		403,650
Bausch & Lomb, Inc.	20,100		1,043,190
Edwards Lifesciences Corp.(a)	18,800		565,504
Hanger Orthopedic Group, Inc.(a)	24,800		386,136
Henry Schein, Inc.(a)	12,300		831,234
Kensey Nash Corp.(a)	16,300		378,975
Neurocrine Biosciences, Inc.(a)	6,600		359,964
Salix Pharmaceuticals, Ltd.(a)	22,600		512,342
Sepracor, Inc.(a)	15,200		363,736


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
STERIS Corp.(a)	49,500	$	1,118,700
Watson Pharmaceuticals, Inc.(a)	38,600		1,775,600

			7,739,031

Electric Utility — 2.5%
Allegheny Energy, Inc.(a)	65,700		838,332
Cinergy Corp.	9,800		380,338
CMS Energy Corp.(a)	92,800		790,656
Energy East Corp.	16,900		378,560
SCANA Corp.	35,200		1,205,600
Sierra Pacific Resources(a)	224,900		1,650,766
Wisconsin Energy Corp.	28,400		949,980

			6,194,232

Electronics — 1.8%
AMETEK, Inc.	8,900		429,514
Arrow Electronics, Inc.(a)	39,700		918,658
Avnet, Inc.(a)	96,700		2,094,522
Benchmark Electronics, Inc.(a)	20,700		720,567
Hubbell, Inc. (Class “B” Stock)	10,200		449,820

			4,613,081

Energy — 1.5%
Aquila, Inc.(a)	146,000		494,940
Dynegy, Inc. (Class “A” Stock)(a)	151,100		646,708
Energen Corp.	20,400		837,012
Equitable Resources, Inc.	42,200		1,811,224

			3,789,884

Engineering — 0.3%
Jacobs Engineering Group, Inc.(a)	8,900		427,289
URS Corp.(a)	13,100		327,631

			754,920

Environmental Services — 0.4%
Republic Services, Inc.	36,600		938,058

Financial Services — 2.4%
Doral Financial Corp.	18,450		595,566
Legg Mason, Inc.	10,800		833,544
MGIC Investment Corp.	8,200		466,908
Old Republic International Corp.	50,250		1,274,340
Raymond James Financial, Inc.	31,000		1,168,700
Waddell & Reed Financial, Inc. (Class “A” Stock)	34,100		799,986
Wintrust Financial Corp.	18,100		816,310

			5,955,354

Food & Beverage — 1.6%
Chiquita Brands International, Inc.(a)	30,700		691,671
Dean Foods Co.(a)	25,848		849,624
Fresh Del Monte Produce, Inc.	29,900		712,517
Smithfield Foods, Inc.(a)	39,400		815,580
The J.M. Smucker Co.	21,400		969,206

			4,038,598

Hospitals & Healthcare Management — 3.3%
Accredo Health, Inc.(a)	19,400		613,234
American Healthways, Inc.(a)	19,710		470,478
Community Health Systems, Inc.(a)	37,200		988,776
Coventry Health Care, Inc.(a)	12,100		780,329

SEE NOTES TO FINANCIAL STATEMENTS.

B116




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Hospitals & Healthcare Management (cont’d.)
Humana, Inc.(a)	64,700	$	1,478,395
Manor Care, Inc.	26,800		926,476
Mariner Health Care, Inc.(a)	14,400		321,120
Molina Healthcare, Inc.(a)	17,700		446,571
PacifiCare Health Systems, Inc.(a)	15,400		1,041,040
Per-Se Technologies, Inc.(a)	30,900		471,534
WebMD Corp.(a)	73,700		662,563

			8,200,516

Index Funds — 4.6%
iShares Russell 2000 Value Index Fund, Inc.	46,700		7,490,680
IShares Russell Mid-Cap Value Index Fund, Inc.	42,100		3,927,930

			11,418,610

Industrials — 1.0%
Kennametal, Inc.	28,900		1,148,775
Oshkosh Truck Corp.	9,500		484,785
Precision Castparts Corp.	20,800		944,528

			2,578,088

Insurance — 3.8%
Allmerica Financial Corp.(a)	13,300		409,241
Arch Capital Group Ltd. (Bermuda)(a)	9,900		394,614
Commerce Group, Inc.	17,300		683,350
Fidelity National Financial, Inc.	44,375		1,720,862
HCC Insurance Holdings, Inc.	30,300		963,540
Markel Corp.(a)	6,300		1,597,113
Penn-America Group, Inc.	29,050		385,494
Philadelphia Consolidated Holding Corp.(a)	6,200		302,746
Protective Life Corp.	18,400		622,656
StanCorp Financial Group, Inc.	14,200		892,896
UICI(a)	73,900		981,392
Zenith National Insurance Corp.	16,000		520,800

			9,474,704

Leisure — 1.2%
Brunswick Corp.	30,100		958,083
International Speedway Corp. (Class “A” Stock)	18,700		835,142
Mandalay Resort Group	13,100		585,832
MarineMax, Inc.(a)	35,400		687,822

			3,066,879

Machinery — 1.1%
AGCO Corp.(a)	36,600		737,124
Albany International Corp. (Class “A” Stock)	13,300		450,870
Astec Industries, Inc.(a)	72,200		885,894
IDEX Corp.	15,800		657,122

			2,731,010

Media — 3.0%
Belo Corp. (Class “A” Stock)	41,500		1,176,110
Cablevision Systems New York Group, Inc. (Class “A” Stock)(a)	57,500		1,344,925
Cumulus Media, Inc. (Class “A” Stock)(a)	31,400		690,800
E.W. Scripps Co. (Class “A” Stock)	11,400		1,073,196


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (cont’d.)
Emmis Communications Corp. (Class “A” Stock)(a)	58,600	$	1,585,130
Entercom Communications Corp.(a)	8,900		471,344
Radio One, Inc. (Class “D” Stock)(a)	67,800		1,308,540

			7,650,045

Mineral Resources — 0.8%
Phelps Dodge Corp.(a)	26,000		1,978,340

Mining — 0.2%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	11,700		492,921

Networking — 0.6%
3Com Corp.(a)	31,500		257,355
Networks Associates, Inc.(a)	30,600		460,224
Quest Software, Inc.(a)	52,400		744,080

			1,461,659

Office Equipment & Supplies — 0.3%
IKON Office Solutions, Inc.	55,700		660,602

Oil Exploration & Production — 2.9%
PetroKazakhstan, Inc. (Class “A” Stock) (Canada)(a)	66,300		1,492,413
Pioneer Natural Resources Co.(a)	39,500		1,261,235
Pogo Producing Co.	23,000		1,110,900
Pride International, Inc.(a)	46,900		874,216
Southwestern Energy Co.(a)	21,700		518,630
Spinnaker Exploration Co.(a)	16,400		529,228
XTO Energy, Inc.	57,166		1,617,798

			7,404,420

Oil & Gas Services — 2.2%
Cross Timbers Royalty Trusts	290		8,271
KeySpan Corp.	18,700		688,160
Oceaneering International, Inc.(a)	8,400		235,200
Premcor, Inc.(a)	27,700		720,200
Smith International, Inc.(a)	9,000		373,680
Southern Union Co.(a)	56,200		1,034,080
Tidewater, Inc.	11,600		346,608
Universal Compression Holdings, Inc.(a)	25,000		654,000
Valero Energy Corp.	20,400		945,336
Varco International, Inc.(a)	26,400		544,632

			5,550,167

Paper & Forest Products — 0.4%
Bowater, Inc.	22,200		1,028,082

Precious Metals — 0.2%
Agnico-Eagle Mines, Ltd. (Canada)	7,300		88,111
Royal Gold, Inc.	23,500		491,855

			579,966

Printing & Publishing — 0.7%
Marvel Enterprises, Inc.(a)	16,900		491,959
Playboy Enterprises, Inc. (Class “A” Stock)(a)	76,100		1,229,776

			1,721,735

Real Estate Investment Trust — 9.9%
Acadia Realty Trust	53,700		671,250
Alexandria Real Estate Equities, Inc.	18,500		1,071,150

SEE NOTES TO FINANCIAL STATEMENTS.

B117




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Real Estate Investment Trust (cont’d.)
Apartment Investment & Management Co. (Class “A” Stock)	14,600	$	503,700
Avalonbay Communities, Inc.	26,700		1,276,260
Boston Properties, Inc.	17,300		833,687
Camden Property Trust	23,200		1,027,760
Capital Automotive REIT	21,300		681,600
CarrAmerica Realty Corp.	37,900		1,128,662
Catellus Development Corp.	28,125		678,375
CBL & Associates Properties, Inc.	9,000		508,500
CenterPoint Properties Corp.	15,900		1,190,910
Duke Realty Corp.	16,100		499,100
Gables Residential Trust	32,400		1,125,576
General Growth Properties, Inc.	28,300		785,325
Health Care REIT, Inc.	33,500		1,206,000
Highwoods Properties, Inc.	43,100		1,094,740
Home Properties of New York, Inc.	22,800		920,892
Macerich Co.	26,500		1,179,250
Manufactured Home Communities, Inc.	24,100		907,365
Pan Pacific Retail Properties, Inc.	20,500		976,825
Reckson Associates Realty Corp.	61,300		1,489,590
SL Green Realty Corp.	17,300		710,165
The Mills Corp.	23,800		1,047,200
Ventas, Inc.	49,200		1,082,400
Vornado Realty Trust	19,000		1,040,250
Weingarten Realty Investors	25,500		1,130,925

			24,767,457

Restaurants — 1.0%
Applebee’s International, Inc.	8,700		341,649
Darden Restaurants, Inc.	19,200		403,968
Jack in the Box, Inc.(a)	8,600		183,696
Outback Steakhouse, Inc.	15,400		680,834
RARE Hospitality International, Inc.(a)	17,300		422,812
Wendy’s International, Inc.	13,500		529,740

			2,562,699

Retail — 4.1%
Aeropostale, Inc.(a)	27,700		759,534
Big Lots, Inc.(a)	47,700		677,817
BJ’s Wholesale Club, Inc.(a)	29,200		670,432
Charming Shoppes, Inc.(a)	66,400		358,560
Christopher & Banks Corp.	19,850		387,670
Coldwater Creek, Inc.(a)	6,875		75,625
Finish Line, Inc. (Class “A” Stock)(a)	28,000		839,160
Foot Locker, Inc.	47,500		1,113,875
Linens ‘n Things, Inc.(a)	15,800		475,264
Nordstrom, Inc.	34,600		1,186,780
Pacific Sunwear of California, Inc.(a)	20,700		437,184
PETsMART, Inc.	20,300		483,140


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Retail (cont’d.)
Regis Corp.		12,600	$	497,952
Saks, Inc.(a)		74,800		1,124,992
Select Comfort Corp.(a)		29,900		740,324
Whole Foods Market, Inc.		7,000		469,910

				10,298,219

Semiconductors — 1.3%
Advanced Micro Devices, Inc.(a)		29,400		438,060
Amphenol Corp. (Class “A” Stock)(a)		13,700		875,841
Cree, Inc.(a)		17,800		314,882
Intersil Corp. (Class “A” Stock)		33,000		820,050
Photronics, Inc.(a)		21,300		424,296
SBS Technologies, Inc.(a)		20,100		295,671

				3,168,800

Telecommunications — 3.2%
Avaya, Inc.(a)		126,100		1,631,734
Citizens Communications Co.(a)		83,700		1,039,554
Comverse Technology, Inc.(a)		63,000		1,108,170
Harris Corp.		16,500		626,175
NTL, Inc.(a)		32,849		2,291,218
Scientific-Atlanta, Inc.		46,700		1,274,910
Triton PCS Holdings, Inc.(a)		24,500		136,710

				8,108,471

Transportation — 1.3%
Alexander & Baldwin, Inc.		31,700		1,067,973
CNF, Inc.		14,000		474,600
Offshore Logistics, Inc.(a)		24,800		608,096
Ryder System, Inc.		12,000		409,800
Teekay Shipping Corp. (Bahamas)		13,200		752,796

				3,313,265

Water Utility — 0.7%
Philadelphia Suburban Corp.		76,375		1,687,887

TOTAL LONG-TERM INVESTMENTS (cost $211,683,812)				247,549,491

	Principal Amount (000)
SHORT-TERM INVESTMENT — 1.8%
Repurchase Agreement
State Street Bank & Trust Company, 0.50%, 1/02/04(b) (cost $4,417,990)	$	4,418		4,417,990

TOTAL INVESTMENTS — 100.6% (cost $216,101,802; Note 6)				251,967,481
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.6)%				(1,392,382	)

NET ASSETS — 100%			$	250,575,099

SEE NOTES TO FINANCIAL STATEMENTS.

B118

The following abbreviation is used in portfolio description:


REIT		Real Estate Investment Trust

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $4,418,113 due 1/2/04. The value of the collateral including accrued interest was $4,507,938. Collateralized by United States Treasury or federal agency obligations.




		*SP STRATEGIC PARTNERS FOCUSED GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.3%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Biotechnology — 6.9%
Amgen, Inc.(a)	22,600	$	1,396,680
Genentech, Inc.(a)	11,400		1,066,698

			2,463,378

Capital Markets — 5.1%
Merrill Lynch & Co., Inc.	15,900		932,535
State Street Corp.	17,000		885,360

			1,817,895

Communications Equipment — 5.0%
Cisco Systems, Inc.(a)	74,500		1,809,605

Computers & Peripherals — 2.5%
Dell, Inc.(a)	26,000		882,960

Consumer Finance — 2.9%
American Express Co.	21,500		1,036,945

Diversified Financial Services — 9.1%
Citigroup, Inc.	30,900		1,499,886
Federal Home Loan Mortgage Corp.	8,700		653,022
MBNA Corp.	20,100		499,485
Morgan Stanley	10,700		619,209

			3,271,602

Electronic Equipment & Instruments — 3.1%
Agilent Technologies, Inc.(a)	37,700		1,102,348

Energy Equipment & Services — 2.9%
BJ Services Co.(a)	29,100		1,044,690

Health Care Equipment & Supplies — 1.8%
Medtronic, Inc.	13,100		636,791

Health Care Providers & Services — 2.5%
UnitedHealth Group, Inc.	15,400		895,972

Hotels, Restaurants & Leisure — 2.6%
Starbucks Corp.(a)	28,800		952,128

Industrial Conglomerates — 4.8%
General Electric Co.	55,500		1,719,390

Insurance — 2.8%
American International Group, Inc.	15,100		1,000,828

Internet & Catalog Retail — 2.1%
eBay, Inc.(a)	11,700		755,703

Internet Services — 1.5%
Yahoo!, Inc.(a)	11,700		528,489

Media — 10.5%
Comcast Corp. (Special Class “A” Stock)(a)	22,100		691,288
Univision Communications, Inc. (Class “A” Stock)(a)	26,300		1,043,847
Viacom, Inc. (Class “B” Stock)	45,700		2,028,166

			3,763,301


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Multi-line Retail — 1.9%
Wal-Mart Stores, Inc.		12,900	$	684,345

Pharmaceuticals — 3.7%
Alcon, Inc.		10,600		641,724
Pfizer, Inc.		19,200		678,336

				1,320,060

Semiconductors & Semiconductor Equipment — 10.1%
Intel Corp.		52,700		1,696,940
International Rectifier Corp.(a)		10,400		513,864
Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan)(a)		55,528		568,607
Texas Instruments, Inc.		29,000		852,020

				3,631,431

Software — 8.1%
Electronic Arts, Inc.(a)		20,200		965,156
Microsoft Corp.		71,200		1,960,848

				2,926,004

Specialty Retail — 7.4%
Bed Bath & Beyond, Inc.(a)		22,000		953,700
Lowe’s Cos., Inc.		14,000		775,460
Tiffany & Co.		20,900		944,680

				2,673,840

TOTAL LONG-TERM INVESTMENTS (cost $30,447,846)				34,917,705

SHORT-TERM INVESTMENTS — 3.3%
Mutual Fund — 1.9%
Dryden Core Investment Fund—Taxable Money Market Series (cost $668,083; Note 4)		668,083		668,083


	Principal Amount (000)
Repurchase Agreement — 1.4%
State Street Bank & Trust Co., 0.50%, 1/2/04(b) (cost $516,489)	$	516		516,489

TOTAL SHORT-TERM INVESTMENTS (cost $1,184,572)				1,184,572

TOTAL INVESTMENTS — 100.6% (cost $31,632,418)				36,102,277
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.6)%				(224,714	)

NET ASSETS — 100%			$	35,877,563

SEE NOTES TO FINANCIAL STATEMENTS.

B119

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $516,503 due 1/2/04. The value of the collateral including accrued interest was $535,863. Collateralized by United States Treasury or Federal Agency obligations.




		*STOCK INDEX PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.0%
COMMON STOCKS	Shares	Value (Note 2)

Advertising — 0.2%
Omnicom Group, Inc.(b)	52,700	$	4,602,291

Aerospace — 1.5%
Boeing Co.	231,036		9,735,857
General Dynamics Corp.	56,200		5,079,918
Lockheed Martin Corp.	126,998		6,527,697
Northrop Grumman Corp.	51,163		4,891,183
Raytheon Co.	116,918		3,512,217
Rockwell Automation, Inc.(b)	53,300		1,897,480
Rockwell Collins, Inc.	52,500		1,576,575
United Technologies Corp.	129,500		12,272,715

			45,493,642

Airlines — 0.1%
Delta Airlines, Inc.	39,000		460,590
Southwest Airlines Co.	210,837		3,402,909

			3,863,499

Apparel — 0.2%
Jones Apparel Group, Inc.	37,500		1,321,125
Nike, Inc. (Class “B” Stock)(b)	72,000		4,929,120
Reebok International, Ltd.(b)	17,000		668,440

			6,918,685

Autos – Cars & Trucks — 1.1%
Cummins Engine Co., Inc.	12,400		606,856
Dana Corp.	37,894		695,355
Delphi Automotive Systems Corp.	162,044		1,654,469
Ford Motor Co.(b)	502,045		8,032,720
General Motors Corp.(b)	154,700		8,260,980
Genuine Parts Co.(b)	49,225		1,634,270
Harley-Davidson, Inc.(b)	81,700		3,883,201
Johnson Controls, Inc.	25,200		2,926,224
Navistar International Corp.(a)(b)	18,900		905,121
PACCAR, Inc.	32,290		2,748,525
Visteon Corp.	42,964		447,255

			31,794,976

Banks and Savings & Loans — 6.2%
AmSouth Bancorporation(b)	95,500		2,339,750
Bank of New York Co., Inc.	216,500		7,170,480
Bank One Corp.	313,745		14,303,635
BankAmerica Corp.(b)	414,144		33,309,602
Capital One Financial Corp.(b)	63,000		3,861,270
Charter One Financial, Inc.	60,373		2,085,887
Comerica, Inc.(b)	50,950		2,856,257
Fifth Third Bancorp(b)	159,549		9,429,346
First Tennessee National Corp.(b)	35,900		1,583,190
Golden West Financial Corp.	43,400		4,478,446
Huntington Bancshares, Inc.	66,875		1,504,688
KeyCorp	115,900		3,398,188
Mellon Financial Corp.	116,100		3,727,971
National City Corp.	172,800		5,864,832
North Fork Bancorporation, Inc.(b)	45,700		1,849,479
Northern Trust Corp.(b)	59,100		2,743,422
PNC Financial Services Group(b)	79,900		4,372,927
Providian Financial Corp.(a)	86,200		1,003,368
SouthTrust Corp.	94,200		3,083,166
State Street Corp.(b)	92,100		4,796,568
Suntrust Banks, Inc.	77,900		5,569,850


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Banks and Savings & Loans (cont’d.)
U.S. Bancorp(b)	535,081	$	15,934,712
Union Planters Corp.	53,600		1,687,864
Wachovia Corp.	370,278		17,251,252
Wells Fargo & Co.(b)	465,960		27,440,384
Zions Bancorporation	23,400		1,435,122

			183,081,656

Chemicals — 1.2%
Air Products & Chemicals, Inc.	60,900		3,217,347
Dow Chemical Co.(b)	254,361		10,573,787
Du Pont (E.I.) de Nemours & Co.(b)	275,091		12,623,926
Eastman Chemical Co.(b)	22,400		885,472
Engelhard Corp.	32,375		969,631
Great Lakes Chemical Corp.(b)	13,500		367,065
Hercules, Inc.(a)	37,400		456,280
Praxair, Inc.	89,400		3,415,080
Rohm & Haas Co.	60,600		2,588,226
Sigma-Aldrich Corp.(b)	21,200		1,212,216

			36,309,030

Commercial Services — 0.9%
Cendant Corp.(a)(b)	288,018		6,414,161
Cintas Corp.(b)	50,300		2,521,539
Concord EFS, Inc.(a)(b)	143,300		2,126,572
Convergys Corp.(a)	47,900		836,334
Deluxe Corp.	14,100		582,753
eBay, Inc.(a)(b)	176,500		11,400,135
Fiserv, Inc.(a)	51,800		2,046,618
Monster Worldwide, Inc.(a)(b)	35,100		770,796

			26,698,908

Computers — 3.3%
Apple Computer, Inc.(a)	101,200		2,162,644
Citrix Systems, Inc.(a)	46,800		992,628
Comverse Technology, Inc.(a)(b)	52,000		914,680
Dell, Inc.(a)	715,200		24,288,192
Hewlett-Packard Co.(b)	845,916		19,430,690
International Business Machines Corp.	481,500		44,625,420
Sun Microsystems, Inc.(a)	882,900		3,964,221

			96,378,475

Computer Services — 7.6%
Adobe Systems, Inc.(b)	62,600		2,460,180
Autodesk, Inc.	33,600		825,888
Automatic Data Processing, Inc.	165,500		6,555,455
Avaya, Inc.(a)	111,908		1,448,090
BMC Software, Inc.(a)	67,600		1,260,740
Cisco Systems, Inc.(a)	1,928,400		46,840,836
Computer Associates International, Inc.(b)	159,243		4,353,704
Computer Sciences Corp.(a)(b)	49,200		2,176,116
Compuware Corp.(a)	108,600		655,944
EMC Corp.(a)	652,074		8,424,796
First Data Corp.(b)	208,000		8,546,720
Gateway, Inc.(a)	106,800		491,280
Intuit, Inc.(a)(b)	57,200		3,026,452
Lexmark International, Inc.(a)	36,314		2,855,733

SEE NOTES TO FINANCIAL STATEMENTS.

B120




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Computer Services (cont’d.)
Mercury Interactive Corp.(a)(b)	25,000	$	1,216,000
Micron Technology, Inc.(a)(b)	170,700		2,299,329
Microsoft Corp.	3,005,100		82,760,454
NCR Corp.(a)(b)	25,900		1,004,920
Network Appliance, Inc.(a)(b)	92,400		1,896,972
Novell, Inc.(a)(b)	106,100		1,116,172
NVIDIA Corp.(a)(b)	44,000		1,023,000
Oracle Corp.(a)	1,450,320		19,144,224
Parametric Technology Corp.(a)	97,000		382,180
Peoplesoft, Inc.(a)	97,000		2,211,600
Siebel Systems, Inc.(a)	134,900		1,871,063
SunGuard Data Systems, Inc.(a)	75,500		2,092,105
Symantec Corp.(a)(b)	84,200		2,917,530
Symbol Technologies, Inc.	67,400		1,138,386
Unisys Corp.(a)	95,000		1,410,750
VERITAS Software Corp.(a)(b)	115,559		4,294,172
Yahoo!, Inc.(a)(b)	179,600		8,112,532

			224,813,323

Construction — 0.2%
Centex Corp.(b)	16,500		1,776,225
Fluor Corp.(b)	23,500		931,540
KB HOME	14,166		1,027,318
Pulte Corp.(b)	16,100		1,507,282
Vulcan Materials Co.(b)	28,200		1,341,474

			6,583,839

Consumer Products
Tupperware Corp.	22,300		386,682

Containers — 0.1%
Ball Corp.	14,100		839,937
Bemis Co., Inc.	16,100		805,000
Pactiv Corp.(a)	43,900		1,049,210

			2,694,147

Cosmetics & Soaps — 2.2%
Alberto-Culver Co. (Class “B” Stock)	15,200		958,816
Avon Products, Inc.	64,300		4,339,607
Clorox Co.(b)	59,500		2,889,320
Colgate-Palmolive Co.	147,100		7,362,355
Gillette Co.	291,200		10,695,776
International Flavors & Fragrances, Inc.	29,400		1,026,648
Procter & Gamble Co.(b)	359,804		35,937,223

			63,209,745

Diversified Consumer Products — 1.1%
Altria Group, Inc.	562,700		30,622,134
Eastman Kodak Co.(b)	84,600		2,171,682

			32,793,816

Diversified Manufacturing Operations — 3.1%
American Standard Cos., Inc.(a)	20,900		2,104,630
Cooper Industries, Ltd. (Class “A” Stock)	25,000		1,448,250
General Electric Co.	2,783,700		86,239,026

			89,791,906


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Diversified Office Equipment — 0.3%
Avery Dennison Corp.	32,000	$	1,792,640
Pitney Bowes, Inc.	66,900		2,717,478
Xerox Corp.(a)(b)	215,792		2,977,930

			7,488,048

Diversified Operations — 0.1%
Corning, Inc.(a)(b)	362,900		3,785,047

Drugs & Medical Supplies — 10.4%
Abbott Laboratories	434,300		20,238,380
Allergan, Inc.	34,900		2,680,669
AmerisourceBergen Corp.(b)	31,200		1,751,880
Bard, (C.R.), Inc.(b)	13,300		1,080,625
Bausch & Lomb, Inc.(b)	17,100		887,490
Baxter International, Inc.(b)	171,800		5,243,336
Becton Dickinson & Co.	72,600		2,986,764
Biogen Idec, Inc.(a)(b)	88,925		3,270,661
Biomet, Inc.	71,225		2,593,302
Boston Scientific Corp.(a)(b)	228,600		8,403,336
Bristol-Myers Squibb Co.	538,460		15,399,956
Cardinal Health, Inc.(b)	122,775		7,508,919
Genzyme Corp.(a)(b)	62,300		3,073,882
Guidant Corp.	83,700		5,038,740
Johnson & Johnson	827,671		42,757,484
King Pharmaceuticals, Inc.(a)(b)	71,633		1,093,120
Lilly (Eli) & Co.	310,700		21,851,531
Medtronic, Inc.(b)	338,700		16,464,207
Merck & Co., Inc.	620,200		28,653,240
Pfizer, Inc.	2,130,208		75,260,249
Quest Diagnostics, Inc.(b)	30,300		2,215,233
Schering-Plough Corp.	407,200		7,081,208
St. Jude Medical, Inc.(a)(b)	50,700		3,110,445
Stryker Corp.	55,000		4,675,550
Watson Pharmaceuticals, Inc.(a)	31,400		1,444,400
Wyeth	368,600		15,647,070
Zimmer Holdings, Inc.(a)	63,486		4,469,414

			304,881,091

Education — 0.1%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	47,700		3,243,600

Electrical Services — 0.2%
American Power Conversion	57,700		1,410,765
Power-One, Inc.(a)	20,000		216,600
TXU Corp.(b)	87,606		2,078,014
Xcel Energy, Inc.	109,495		1,859,225

			5,564,604

Electronics — 5.0%
Advanced Micro Devices, Inc.(a)(b)	108,200		1,612,180
Altera Corp.(a)	108,500		2,462,950
Analog Devices, Inc.	99,800		4,555,870
Applied Materials, Inc.(a)	459,300		10,311,285
Applied Micro Circuits Corp.(a)	97,000		580,060
Broadcom Corp.(a)(b)	79,800		2,720,382
Electronic Arts, Inc.(a)(b)	80,400		3,841,512
Electronic Data Systems Corp.(b)	128,300		3,148,482
Emerson Electric Co.	115,700		7,491,575

SEE NOTES TO FINANCIAL STATEMENTS.

B121




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Electronics (cont’d.)
Intel Corp.(b)	1,809,600	$	58,269,120
Jabil Circuit, Inc.(a)(b)	54,600		1,545,180
JDS Uniphase Corp.(a)(b)	410,100		1,496,865
KLA-Tencor Corp.(a)	51,400		3,015,638
Linear Technology Corp.	88,100		3,706,367
LSI Logic Corp.(a)(b)	110,800		982,796
Maxim Integrated Products, Inc.	89,800		4,472,040
Molex, Inc.(b)	50,500		1,761,945
National Semiconductor Corp.(a)	50,800		2,002,028
Novellus Systems, Inc.(a)(b)	40,000		1,682,000
Perkin Elmer, Inc.	36,000		614,520
Pinnacle West Capital Corp.	26,000		1,040,520
PMC-Sierra, Inc.(a)(b)	48,800		983,320
PPL Corp.(b)	47,000		2,056,250
QLogic Corp.(a)(b)	25,900		1,336,440
RadioShack Corp.(b)	48,660		1,492,889
Sanmina Corp.(a)	150,600		1,899,066
Solectron Corp.(a)(b)	247,000		1,459,770
Tektronix, Inc.	22,700		717,320
Teradyne, Inc.(a)(b)	57,000		1,450,650
Texas Instruments, Inc.	478,200		14,049,516
Thomas & Betts Corp.(b)	20,800		476,112
Waters Corp.(a)	38,500		1,276,660
Xilinx, Inc.(a)(b)	94,900		3,676,426

			148,187,734

Financial Services — 9.0%
Ambac Financial Group, Inc.	30,000		2,081,700
American Express Co.	360,200		17,372,446
Bear Stearns Cos., Inc.(b)	27,310		2,183,434
Citigroup, Inc.	1,433,576		69,585,779
Countrywide Credit Industries, Inc.(b)	50,267		3,812,727
Equifax, Inc.(b)	41,300		1,011,850
Fannie Mae	272,100		20,423,826
Federated Investors, Inc. (Class “B” Stock)	26,500		778,040
FleetBoston Financial Corp.	290,766		12,691,936
Franklin Resources, Inc.(b)	67,800		3,529,668
Freddie Mac	191,700		11,179,944
Goldman Sachs Group, Inc.(b)	132,200		13,052,106
H&R Block, Inc.	51,600		2,857,092
J.P. Morgan Chase & Co.	564,066		20,718,144
Janus Capital Group, Inc.	62,600		1,027,266
Lehman Brothers Holdings, Inc.	75,200		5,806,944
Marshall & Ilsley Corp.	62,400		2,386,800
MBNA Corp.	355,652		8,837,952
Merrill Lynch & Co., Inc.	259,300		15,207,945
Moody’s Corp.	41,760		2,528,568
Morgan Stanley(b)	302,310		17,494,680
Paychex, Inc.(b)	103,650		3,855,780
Regions Financial Corp.	62,800		2,336,160
Schwab (Charles) Corp.(b)	374,100		4,429,344
SLM Corp.	128,100		4,826,808
Synovus Financial Corp.(b)	85,100		2,461,092
T. Rowe Price Group, Inc.(b)	36,000		1,706,760
Washington Mutual, Inc.	257,122		10,315,735

			264,500,526


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Food & Beverage — 4.1%
Adolph Coors Co.(b)	10,800	$	605,880
Anheuser-Busch Cos., Inc.	232,200		12,232,296
Archer-Daniels-Midland Co.	181,938		2,769,096
Brown-Forman Corp. (Class “B” Stock)	16,300		1,523,235
Campbell Soup Co.(b)	111,800		2,996,240
Coca-Cola Co.	684,200		34,723,150
Coca-Cola Enterprises, Inc.	122,800		2,685,636
ConAgra Foods, Inc.	147,100		3,881,969
General Mills, Inc.	103,400		4,684,020
Heinz (H.J.) & Co.	98,850		3,601,106
Hershey Foods Corp.	36,500		2,810,135
Kellogg Co.	114,400		4,356,352
McCormick & Co., Inc.(b)	36,300		1,092,630
Monsanto Co.(b)	76,398		2,198,734
Pepsi Bottling Group, Inc.	79,200		1,915,056
PepsiCo, Inc.	480,940		22,421,423
Sara Lee Corp.	215,800		4,685,018
Sysco Corp.(b)	178,700		6,653,001
Wrigley (William) Jr. Co.	62,800		3,529,988

			119,364,965

Forest Products — 0.6%
Boise Cascade Corp.	19,886		653,454
Georgia-Pacific Corp.	68,039		2,086,756
International Paper Co.	131,467		5,667,542
Louisiana-Pacific Corp.(a)	22,000		393,360
MeadWestvaco Corp.	57,289		1,704,348
Plum Creek Timber Co., Inc.(b)	53,300		1,622,985
Temple-Inland, Inc.	16,000		1,002,720
Weyerhaeuser Co.(b)	61,300		3,923,200

			17,054,365

Gas Pipelines — 0.2%
Cinergy Corp.	48,339		1,876,037
Peoples Energy Corp.(b)	11,400		479,256
Sempra Energy(b)	63,054		1,895,403
Williams Cos., Inc.(b)	157,100		1,542,722

			5,793,418

Hospitals/Healthcare Management — 2.6%
Aetna, Inc.(b)	43,112		2,913,509
Agilent Technologies, Inc.(a)	127,913		3,740,176
Amgen, Inc.(a)	357,164		22,072,735
Anthem, Inc.(a)(b)	40,000		3,000,000
Applera Corp.-Applied Biosystems Group(b)	60,000		1,242,600
Chiron Corp.(a)(b)	51,600		2,940,684
Express Scripts, Inc.(a)(b)	21,200		1,408,316
Forest Laboratories, Inc.(a)	100,800		6,229,440
HCA, Inc.(b)	142,598		6,126,010
Health Management Associates, Inc. (Class “A” Stock)(b)	66,300		1,591,200
Humana, Inc.(a)	46,100		1,053,385
IMS Health, Inc.	69,020		1,715,837
Manor Care, Inc.(b)	22,950		793,382
McKesson Corp.(b)	81,107		2,608,401
Medco Health Solutions, Inc.(a)	74,796		2,542,316

SEE NOTES TO FINANCIAL STATEMENTS.

B122




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Hospitals/Healthcare Management (cont’d.)
MedImmune, Inc.(a)	68,200	$	1,732,280
Tenet Healthcare Corp.(a)	127,100		2,039,955
UnitedHealth Group, Inc.(b)	167,000		9,716,060
Wellpoint Health Networks, Inc.(a)	40,800		3,957,192

			77,423,478

Household Products & Personal Care — 0.3%
Kimberly-Clark Corp.	143,188		8,460,979
Leggett & Platt, Inc.(b)	56,400		1,219,932

			9,680,911

Housing Related — 0.3%
Masco Corp.(b)	135,500		3,714,055
Maytag Corp.	21,800		607,130
Newell Rubbermaid, Inc.	72,249		1,645,110
Stanley Works	25,800		977,046
Whirlpool Corp.(b)	19,300		1,402,145

			8,345,486

Human Resources
Robert Half International, Inc.(a)(b)	52,300		1,220,682

Insurance — 4.4%
ACE, Ltd.	75,200		3,114,784
AFLAC, Inc.	141,800		5,130,324
Allstate Corp.	193,688		8,332,458
American International Group, Inc.	724,187		47,999,114
Aon Corp.(b)	90,425		2,164,775
Chubb Corp.(b)	53,400		3,636,540
CIGNA Corp.	41,000		2,357,500
Cincinnati Financial Corp.	43,200		1,809,216
Hartford Financial Services Group, Inc.(b)	80,400		4,746,012
Jefferson-Pilot Corp.	38,418		1,945,872
John Hancock Financial Services, Inc.	79,300		2,973,750
Lincoln National Corp.	47,700		1,925,649
Loews Corp.	51,800		2,561,510
Marsh & McLennan Cos., Inc.(b)	148,600		7,116,454
MBIA, Inc.(b)	41,650		2,466,929
MetLife, Inc.	209,200		7,043,764
MGIC Investment Corp.(b)	27,900		1,588,626
Principal Financial Group, Inc.	92,000		3,042,440
Progressive Corp.	60,700		5,073,913
SAFECO Corp.(b)	37,400		1,455,982
St. Paul Cos., Inc.	63,410		2,514,206
Torchmark Corp.	31,000		1,411,740
Travelers Property Casualty Corp. (Class “B” Stock)	281,469		4,776,529
UnumProvident Corp.(b)	80,456		1,268,791
XL Capital, Ltd. (Bermuda) (Class “A” Stock)	39,700		3,078,735

			129,535,613

Leisure — 1.0%
Brunswick Corp.	26,400		840,312
Carnival Corp.(b)	174,600		6,936,858
Disney (Walt) Co.(b)	564,501		13,169,808


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Leisure (cont’d.)
Harrah’s Entertainment, Inc.	29,750	$	1,480,658
Hilton Hotels Corp.(b)	104,800		1,795,224
Marriott International, Inc. (Class “A” Stock)	63,600		2,938,320
Sabre Group Holdings, Inc. (Class “A” Stock)	42,419		915,826
Starwood Hotels & Resorts Worldwide, Inc.	56,800		2,043,096

			30,120,102

Machinery — 0.8%
Caterpillar, Inc.(b)	94,400		7,837,088
Deere & Co.(b)	67,400		4,384,370
Dover Corp.	58,200		2,313,450
Eaton Corp.	21,600		2,332,368
Ingersoll-Rand Co. (Class “A” Stock)	46,250		3,139,450
Parker Hannifin Corp.(b)	34,425		2,048,287
Snap-on, Inc.	14,300		461,032
Thermo Electron Corp.(a)	46,400		1,169,280

			23,685,325

Media — 3.4%
Clear Channel Communications, Inc.	172,500		8,078,175
Comcast Corp. (Class “A” Stock)(a)	626,530		20,594,041
Dow Jones & Co., Inc.(b)	22,800		1,136,580
Gannett Co., Inc.	75,600		6,740,496
Interpublic Group of Cos., Inc.(a)(b)	116,200		1,812,720
Knight-Ridder, Inc.(b)	23,000		1,779,510
McGraw Hill, Inc.	54,200		3,789,664
Meredith Corp.(b)	13,800		673,578
New York Times Co. (Class “A” Stock)	41,500		1,983,285
R.R. Donnelley & Sons, Co.(b)	31,200		940,680
Time Warner, Inc.(a)(b)	1,252,820		22,538,232
Tribune Co.	85,200		4,396,320
Univision Communications, Inc. (Class “A” Stock)(a)	91,500		3,631,635
Viacom, Inc. (Class “B” Stock)(b)	486,136		21,574,716

			99,669,632

Metals – Ferrous — 0.1%
Allegheny Technologies, Inc.	28,940		382,587
Nucor Corp.	21,800		1,220,800
United States Steel Corp.(b)	31,540		1,104,531
Worthington Industries, Inc.(b)	24,000		432,720

			3,140,638

Metals – Non Ferrous — 0.3%
Alcoa, Inc.(b)	237,776		9,035,488

Mineral Resources — 0.2%
Burlington Resources, Inc.(b)	57,417		3,179,753
Phelps Dodge Corp.(a)(b)	23,528		1,790,246

			4,969,999

SEE NOTES TO FINANCIAL STATEMENTS.

B123




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Miscellaneous – Basic Industry — 2.1%
AES Corp.(a)(b)	161,700	$	1,526,448
BB&T Corp.(b)	152,400		5,888,736
Crane Co.	14,325		440,351
Danaher Corp.(b)	41,400		3,798,450
Ecolab, Inc.	73,800		2,019,906
Fortune Brands, Inc.	41,600		2,973,984
Honeywell, Inc.	241,050		8,058,302
Illinois Tool Works, Inc.	85,200		7,149,132
International Game Technology(b)	98,000		3,498,600
ITT Industries, Inc.	25,000		1,855,250
Millipore Corp.(a)(b)	14,200		611,310
Pall Corp.(b)	36,000		965,880
PPG Industries, Inc.	46,600		2,983,332
Sealed Air Corp.(a)	22,910		1,240,347
Textron, Inc.	35,100		2,002,806
Tyco International, Ltd.(b)	550,743		14,594,689
W.W. Grainger, Inc.	23,200		1,099,448

			60,706,971

Miscellaneous – Consumer Growth/Staple — 0.7%
3M Co.	218,000		18,536,540
American Greetings Corp. (Class “A” Stock)(a)(b)	20,800		454,896
Black & Decker Corp.	21,200		1,045,584

			20,037,020

Oil & Gas — 4.0%
Amerada Hess Corp.	25,500		1,355,835
Anadarko Petroleum Corp.	68,063		3,471,893
Ashland, Inc.	18,600		819,516
ChevronTexaco Corp.(b)	296,361		25,602,627
El Paso Corp.(b)	156,311		1,280,187
EOG Resources, Inc.	29,500		1,362,015
Exxon Mobil Corp.	1,846,170		75,692,970
Kerr-McGee Corp.	28,126		1,307,578
Marathon Oil Corp.	86,300		2,855,667
NICOR, Inc.	14,200		483,368
Sunoco, Inc.	22,500		1,150,875
Unocal Corp.	71,200		2,622,296

			118,004,827

Oil & Gas Exploration/Production — 0.7%
ConocoPhillips	188,497		12,359,748
Devon Energy Corp.	63,400		3,630,284
Occidental Petroleum Corp.	102,800		4,342,272

			20,332,304

Oil & Gas Services — 1.1%
Apache Corp.(b)	44,425		3,602,868
Baker Hughes, Inc.	95,130		3,059,381
BJ Services Co.(a)	43,700		1,568,830
Halliburton Co.(b)	118,300		3,075,800
Kinder Morgan, Inc.	35,000		2,068,500
Nabors Industries, Ltd. (Barbados)(a)(b)	39,500		1,639,250
Noble Corp.(a)	40,600		1,452,668
PG&E Corp.(a)(b)	117,500		3,262,975
Rowan Cos., Inc.(a)(b)	28,700		664,979
Schlumberger, Ltd.	163,700		8,957,664
Transocean Sedco Forex, Inc.(a)(b)	85,033		2,041,642

			31,394,557


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Precious Metals — 0.3%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	48,900	$	2,060,157
Newmont Mining Corp.	118,403		5,755,570

			7,815,727

Railroads — 0.4%
Burlington Northern Santa Fe Corp.	100,026		3,235,841
CSX Corp.	57,412		2,063,387
Norfolk Southern Corp.	110,500		2,613,325
Union Pacific Corp.(b)	71,700		4,981,716

			12,894,269

Real Estate Investment Trust — 0.4%
Apartment Investment & Management Co. (Class “A” Stock)	27,500		948,750
Equity Office Properties Trust	109,400		3,134,310
Equity Residential Properties Trust(b)	71,600		2,112,916
ProLogis	51,200		1,643,008
Simon Property Group, Inc.(b)	53,300		2,469,922

			10,308,906

Restaurants — 0.5%
Darden Restaurants, Inc.	50,250		1,057,260
McDonald’s Corp.	350,200		8,695,466
Wendy’s International, Inc.	30,700		1,204,668
Yum! Brands, Inc.(a)	82,400		2,834,560

			13,791,954

Retail — 6.6%
Albertson’s, Inc.(b)	97,944		2,218,432
AutoNation, Inc.(a)	79,500		1,460,415
AutoZone, Inc.(a)(b)	24,100		2,053,561
Bed Bath & Beyond, Inc.(a)	82,200		3,563,370
Best Buy Co., Inc.	89,450		4,672,868
Big Lots, Inc.(a)	35,200		500,192
Circuit City Stores, Inc.	66,200		670,606
Costco Wholesale Corp.(a)	126,532		4,704,460
CVS Corp.	110,000		3,973,200
Dillard’s, Inc. (Class “A” Stock)	25,750		423,845
Dollar General Corp.	90,203		1,893,361
Family Dollar Stores, Inc.	45,600		1,636,128
Federated Department Stores, Inc.(b)	51,100		2,408,343
Gap, Inc.(b)	244,287		5,669,901
Home Depot, Inc.	640,719		22,739,117
J.C. Penney Co., Inc.(b)	76,600		2,013,048
Kohl’s Corp.(a)(b)	93,700		4,210,878
Kroger Co.(a)(b)	213,600		3,953,736
Limited Brands	148,196		2,671,974
Liz Claiborne, Inc.	31,800		1,127,628
Lowe’s Cos., Inc.(b)	216,400		11,986,396
May Department Stores Co.(b)	79,600		2,313,972
Nordstrom, Inc.(b)	38,300		1,313,690
Office Depot, Inc.(a)	89,000		1,487,190
Safeway, Inc.(a)(b)	124,600		2,729,986
Sears, Roebuck & Co.(b)	68,800		3,129,712

SEE NOTES TO FINANCIAL STATEMENTS.

B124




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Retail (cont’d.)
Sherwin-Williams Co.	39,700	$	1,379,178
Staples, Inc.(a)(b)	136,800		3,734,640
Starbucks Corp.(a)	104,600		3,458,076
Supervalu, Inc.	39,000		1,115,010
Target Corp.(b)	251,368		9,652,531
Tiffany & Co.	39,300		1,776,360
TJX Cos., Inc.(b)	145,200		3,201,660
Toys ‘R’ Us, Inc.(a)	61,250		774,200
Wal-Mart Stores, Inc.	1,206,400		63,999,520
Walgreen Co.	288,000		10,477,440
Winn-Dixie Stores, Inc.(b)	36,900		367,155

			195,461,779

Rubber — 0.1%
B.F. Goodrich Co.	31,800		944,142
Cooper Tire & Rubber Co.	23,800		508,844
Goodyear Tire & Rubber Co.(a)	49,200		386,712

			1,839,698

Telecommunications — 4.3%
ADC Telecommunications, Inc.(a)	232,400		690,228
Alltel Corp.	87,800		4,089,724
Andrew Corp.(a)(b)	33,112		381,119
AT&T Corp.(b)	219,073		4,447,182
AT&T Wireless Services, Inc.(a)(b)	747,343		5,971,271
BellSouth Corp.	512,200		14,495,260
CenturyTel, Inc.(b)	40,100		1,308,062
CIENA Corp.(a)(b)	115,000		763,600
Citizens Communications Co.(a)(b)	83,000		1,030,860
Lucent Technologies, Inc.(a)(b)	1,120,305		3,181,666
Motorola, Inc.(b)	641,295		9,023,021
Nextel Communications, Inc. (Class “A” Stock)(a)(b)	305,900		8,583,554
QUALCOMM, Inc.(b)	220,100		11,869,993
Qwest Communications International, Inc.(a)(b)	473,947		2,047,451
SBC Communications, Inc.	925,774		24,134,928
Scientific-Atlanta, Inc.	46,800		1,277,640
Sprint Corp.(b)	245,700		4,034,394
Sprint Corp. (PCS Group)(a)(b)	286,200		1,608,444
Tellabs, Inc.(a)	116,000		977,880
Verizon Communications, Inc.	768,138		26,946,281

			126,862,558

Textiles
VF Corp.	27,536		1,190,657

Tobacco — 0.1%
R.J. Reynolds Tobacco Holdings, Inc.(b)	22,000		1,279,300
UST, Inc.(b)	48,900		1,745,241

			3,024,541

Toy Manufacturer — 0.1%
Hasbro, Inc.(b)	47,650		1,013,992
Mattel, Inc.(b)	120,281		2,317,815

			3,331,807


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Trucking & Shipping — 1.0%
FedEx Corp.	84,340	$	5,692,950
Ryder System, Inc.	17,600		601,040
United Parcel Service, Inc. (Class “B” Stock)(b)	312,100		23,267,055

			29,561,045

Utilities – Electric — 1.6%
Allegheny Energy, Inc.(a)	35,200		449,152
Ameren Corp.(b)	46,200		2,125,200
American Electric Power Co., Inc.	107,940		3,293,249
Calpine Corp.(a)(b)	95,000		456,950
CenterPoint Energy, Inc.(b)	90,610		878,011
CMS Energy Corp.(a)	43,100		367,212
Consolidated Edison, Inc.(b)	62,700		2,696,727
Constellation Energy Group	46,850		1,834,646
Dominion Resources, Inc.(b)	90,142		5,753,764
DTE Energy Co.(b)	48,700		1,918,780
Duke Energy Co.(b)	249,262		5,097,408
Edison International(b)	95,900		2,103,087
Entergy Corp.	63,200		3,610,616
FirstEnergy Corp.	91,236		3,211,507
FPL Group, Inc.(b)	50,700		3,316,794
Public Service Enterprise Group, Inc.(b)	63,700		2,790,060
Southern Co.	199,500		6,034,875
TECO Energy, Inc.(b)	43,700		629,717

			46,567,755

Utilities – Electric & Gas — 0.4%
Dynegy, Inc. (Class “A” Stock)(a)(b)	113,300		484,924
Exelon Corp.	90,875		6,030,465
KeySpan Corp.	43,400		1,597,120
NiSource, Inc.	73,000		1,601,620
Progress Energy, Inc.	65,214		2,951,586

			12,665,715

Waste Management — 0.2%
Allied Waste Industries, Inc.(a)(b)	69,000		957,720
Waste Management, Inc.	161,630		4,784,248

			5,741,968

TOTAL COMMON STOCKS (cost $2,202,576,118)			2,853,639,430

CONTINGENT VALUE OBLIGATION
Utilities — Electric & Gas
Progress Energy, Inc.(a)(e) (cost $17,640)	36,000		0

TOTAL LONG-TERM INVESTMENTS (cost $2,202,593,758)			2,853,639,430

SHORT-TERM INVESTMENTS — 26.1%
Mutual Fund — 25.9%
Dryden Core Investment Fund —Taxable Money Market Series (Note 4)(c)	762,416,165		762,416,165

SEE NOTES TO FINANCIAL STATEMENTS.

B125




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


SHORT-TERM INVESTMENTS (Continued)	Principal Amount (000)	Value (Note 2)

U.S. Government Obligation — 0.2%
United States Treasury Bill(d)(f) 0.87%, 3/18/04	$5,500	$	5,489,736

TOTAL SHORT-TERM INVESTMENTS (cost $767,905,901)			767,905,901

TOTAL INVESTMENTS — 123.1% (cost $2,970,499,659; Note 6)			3,621,545,331
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(g)			218,225
LIABILITIES IN EXCESS OF OTHER ASSETS — (23.1)%			(680,860,917	)

NET ASSETS — 100%		$	2,940,902,639

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $659,448,903; cash collateral of $684,279,573 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Indicates a fair valued security.

(f)	Rate quoted represents yield-to-maturity at purchase date.

(g)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
301	S&P 500 Index	Mar 04	$	80,620,326	$	83,572,650	$	2,952,324

SEE NOTES TO FINANCIAL STATEMENTS.

B126




		*VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.3%
COMMON STOCKS	Shares	Value (Note 2)

Aerospace & Defense — 3.8%
General Dynamics Corp.	289,100	$	26,131,749
Northrop Grumman Corp.	310,400		29,674,240

			55,805,989

Biotechnology — 0.6%
MedImmune, Inc.(a)	344,200		8,742,680

Capital Markets — 8.2%
Bank of New York Co., Inc. (The)	455,100		15,072,912
Goldman Sachs Group, Inc. (The)	77,200		7,621,956
J.P. Morgan Chase & Co.(b)	597,600		21,949,848
Lehman Brothers Holdings, Inc.(b)	381,200		29,436,264
Mellon Financial Corp.(b)	461,800		14,828,398
Merrill Lynch & Co., Inc.(b)	401,200		23,530,380
Morgan Stanley(b)	128,500		7,436,295

			119,876,053

Chemicals — 1.1%
IMC Global, Inc.(b)	863,500		8,574,555
Lyondell Chemical Co.(b)	421,800		7,149,510

			15,724,065

Commercial Banks — 1.0%
FleetBoston Financial Corp.	333,500		14,557,275

Commercial Services & Supplies — 3.5%
Allied Waste Industries, Inc.(a)(b)	858,800		11,920,144
Cendant Corp.(a)(b)	741,500		16,513,205
Waste Management, Inc.	775,000		22,940,000

			51,373,349

Communications Equipment — 1.0%
Harris Corp.	283,700		10,766,415
Motorola, Inc.	229,600		3,230,472

			13,996,887

Computers & Peripherals — 1.4%
Hewlett-Packard Co.	880,250		20,219,342

Consumer Finance — 0.8%
American Express Services Co.	244,700		11,801,881

Diversified Financial Services — 4.0%
Citigroup, Inc.	1,203,500		58,417,890

Diversified Telecommunication Services — 2.8%
SBC Communications, Inc.(b)	955,600		24,912,492
Verizon Communications, Inc.	443,600		15,561,488

			40,473,980

Electric Utilities — 4.9%
DTE Energy Co.(b)	368,300		14,511,020
FirstEnergy Corp.	880,900		31,007,680
PG&E Corp.(a)(b)	382,600		10,624,802
TXU Corp.(b)	629,000		14,919,880

			71,063,382

Electronic Equipment & Instruments — 0.5%
Agilent Technologies, Inc.(a)	240,300		7,026,372


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Energy Equipment & Services — 9.4%
Baker Hughes, Inc.	603,700	$	19,414,992
ENSCO International, Inc.	1,061,900		28,851,823
GlobalSantaFe Corp.(b)	1,066,400		26,478,712
Halliburton Co.(b)	1,084,900		28,207,400
Rowan Cos., Inc.(a)	411,000		9,522,870
Schlumberger, Ltd.	454,900		24,892,128

			137,367,925

Food & Staples Retailing — 3.0%
Kroger Co. (The)(a)	1,546,000		28,616,460
Safeway, Inc.(a)	683,600		14,977,676

			43,594,136

Food Products — 2.0%
ConAgra Foods, Inc.(b)	547,600		14,451,164
Kraft Foods, Inc. (Class “A” Stock)(b)	466,600		15,033,852

			29,485,016

Healthcare Providers & Services — 4.2%
CIGNA Corp.	268,100		15,415,750
Laboratory Corp. of America Holdings(a)(b)	400,000		14,780,000
Medco Health Solutions, Inc.(a)	372,404		12,658,012
Pacificare Health Systems, Inc.(a)	102,800		6,949,280
Tenet Healthcare Corp.(a)	701,000		11,251,050

			61,054,092

Hotels, Restaurants & Leisure — 1.8%
Brinker International, Inc.(a)	398,600		13,217,576
McDonald’s Corp.	523,700		13,003,471

			26,221,047

Household Products — 2.1%
Kimberly-Clark Corp.	517,100		30,555,439

Industrial Conglomerates — 1.7%
Tyco International, Ltd. (Bermuda)(b)	925,700		24,531,050

Insurance — 6.5%
Allstate Corp.	331,600		14,265,432
Hartford Financial Services Group, Inc.(b)	320,700		18,930,921
Travelers Property Casualty Corp. (Class “A” Stock)	1,056,445		17,727,147
UnumProvident Corp.(b)	466,300		7,353,551
XL Capital, Ltd. (Class “A” Stock)(b)	472,700		36,657,885

			94,934,936

Machinery — 0.5%
Navistar International Corp.(a)(b)	170,100		8,146,089

Media — 6.1%
Hughes Electronics Corp.(a)	885,281		14,651,401
Liberty Media Corp. (Class “A” Stock)(a)(b)	1,666,100		19,809,929
New York Times Co. (The) (Class “A” Stock)	207,600		9,921,204

SEE NOTES TO FINANCIAL STATEMENTS.

B127




		*VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Media (cont’d.)
News Corp., Ltd. (The), ADR (Australia)	820,801	$	24,829,239
Time Warner, Inc.(a)(b)	426,800		7,678,132
Viacom, Inc. (Class “B” Stock)	273,800		12,151,244

			89,041,149

Office Electronics — 1.8%
Xerox Corp.(a)(b)	1,932,700		26,671,260

Oil & Gas — 5.8%
Apache Corp.(b)	133,710		10,843,881
ExxonMobil Corp.	537,900		22,053,900
Occidental Petroleum Corp.	546,600		23,088,384
Royal Dutch Petroleum Co. (Netherlands)	52,300		2,739,997
Total SA, ADR (France)	283,600		26,235,836

			84,961,998

Paper & Forest Products — 4.1%
Boise Cascade Corp.	324,000		10,646,640
Georgia-Pacific Corp.	605,500		18,570,685
International Paper Co.	701,300		30,233,043

			59,450,368

Pharmaceuticals — 3.6%
Novartis AG, ADR (Switzerland)	358,400		16,446,976
Pfizer, Inc.	640,140		22,616,146
Wyeth	305,542		12,970,258

			52,033,380

Road & Rail — 1.2%
Union Pacific Corp.	246,600		17,133,768


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductors & Semiconductor Equipment — 0.1%
Agere Systems, Inc. (Class “B” Stock)(a)	679,800	$	1,971,420

Software — 2.0%
Mentor Graphics Corp.(a)	991,200		14,412,048
Microsoft Corp.	529,600		14,585,184

			28,997,232

Specialty Retail — 2.1%
Limited Brands	577,200		10,406,916
Toys “R” Us, Inc.(a)	1,554,800		19,652,672

			30,059,588

Tobacco — 3.7%
Altria Group, Inc.(b)	750,500		40,842,210
Loews Corp. — Carolina Group	540,400		13,639,696

			54,481,906

TOTAL LONG-TERM INVESTMENTS (cost $1,186,265,947)			1,389,770,944

SHORT-TERM INVESTMENT — 25.6%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series, (cost $374,016,849; Note 4)(c)	374,016,849		374,016,849

TOTAL INVESTMENTS — 120.9% (cost $1,560,282,796; Note 6)			1,763,787,793

LIABILITIES IN EXCESS OF OTHER ASSETS — (20.9)%			(304,764,400	)

NET ASSETS — 100%		$	1,459,023,393

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $264,057,525; cash collateral $281,152,744 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B128




		*ZERO COUPON BOND PORTFOLIO 2005*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.4% LONG-TERM BONDS	Maturity Date	Principal Amount (000)	Value (Note 2)
U.S. GOVERNMENT & AGENCY OBLIGATIONS
Federal National Mortgage Association	01/24/05	$ 1,400	$	1,376,154
Federal National Mortgage Association	01/24/06	2,320		2,211,816
Financing Corp.	03/07/04	3,350		3,342,328
Financing Corp.	02/08/05	688		676,257
Financing Corp.	11/11/05	425		409,017
Financing Corp.	08/08/07	2,070		1,854,047
United States Treasury Bond	08/15/05	37,295		36,343,194
United States Treasury Bond	02/15/06	7,970		7,659,704
United States Treasury Bond	08/15/07	9,950		9,009,526

TOTAL LONG-TERM INVESTMENTS (cost $59,113,781)				62,882,043

		Shares
SHORT-TERM INVESTMENT — 1.7%
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series (cost $1,069,751; Note 4)		1,069,751		1,069,751

TOTAL INVESTMENTS — 100.1% (cost $60,183,532; Note 6)				63,951,794
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.1)%				(55,241	)

NET ASSETS — 100.0%			$	63,896,553

SEE NOTES TO FINANCIAL STATEMENTS.

B129

NOTES TO THE FINANCIAL STATEMENTS OF

THE PRUDENTIAL SERIES FUND, INC.

Note 1:

General

The Prudential Series Fund, Inc. (“Series Fund”), a Maryland corporation, organized on November 15, 1982, is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Series Fund is composed of thirty-six Portfolios (“Portfolio” or “Portfolios”), each with a separate series of capital stock.

The Portfolios of the Series Fund have the following as investment objectives:

Conservative Balanced Portfolio: Total investment return consistent with a conservatively managed diversified portfolio by investing in a mix of equity-related securities, debt obligations and money market instruments.

Diversified Bond Portfolio: High level of income over a longer term while providing reasonable safety of capital by investing in intermediate and long-term debt obligations that are rated investment grade and high quality money market instruments. The types of debt obligations in which the Portfolio can invest include U.S. government securities, mortgage-related securities and corporate bonds.

Diversified Conservative Growth Portfolio: Current income and a reasonable level of capital appreciation by investing primarily in a diversified portfolio of debt and equity securities.

Equity Portfolio: Capital appreciation by investing primarily in stocks of major, established corporations as well as small companies.

Flexible Managed Portfolio: High total return consistent with an aggressively managed diversified portfolio by investing in a mix of equity and equity-related securities, debt obligations and money market instruments.

Global Portfolio: Long-term growth of capital by investing primarily in equity and equity-related securities of foreign and U.S. companies.

Government Income Portfolio: High level of income over the long-term consistent with the preservation of capital by investing primarily in intermediate and long-term U.S. government securities, including U.S. Treasuries and agencies and mortgage-related securities.

High Yield Bond Portfolio: High total return by investing primarily in medium to lower rated debt securities.

Jennison Portfolio: Long-term growth of capital by investing primarily in equity securities of established companies that the Portfolio manager believes offer above-average growth prospects.

Jennison 20/20 Focus Portfolio: Long-term growth of capital by investing primarily in up to 40 equity securities of U.S. companies that the Portfolio managers believe to have strong capital appreciation potential.

Money Market Portfolio: Maximum current income consistent with the stability of capital and maintenance of liquidity by investing in high quality short-term money market securities issued by the U.S government and its agencies, as well as commercial paper, asset backed securities, certificates of deposit and other obligations issued by banks, corporations and other companies, that generally mature in 13 months or less.

Natural Resources Portfolio: Long-term growth of capital by investing primarily in stocks of companies that operate within, or do business with, the natural resources sector of the economy.

Small Capitalization Stock Portfolio: Long-term growth of capital that corresponds to the price and yield performance of the Standard & Poor’s Small Capitalization Stock Index (the “S&P 600 SmallCap Index”) by investing primarily in stocks of the S&P 600 SmallCap Index.

SP Aggressive Growth Asset Allocation Portfolio: Capital appreciation by investing primarily in large cap equity portfolios, international portfolios, and small/mid cap equity portfolios. The Portfolio will achieve this by investing in other Series Fund Portfolios.

SP AIM Aggressive Growth Portfolio: Long-term growth of capital by investing primarily in the common stock of companies whose earnings the Portfolio’s managers expect to grow more than 15% per year.

SP AIM Core Equity Portfolio: Growth of capital with a secondary objective of current income by investing primarily in securities of established companies that have long-term above-average growth in earnings and dividends, and growth companies that the Portfolio managers believe have the potential for above-average growth in earnings and dividends.

SP Alliance Large Cap Growth Portfolio: Growth of capital by pursuing aggressive investment policies. The Portfolio invests primarily in stocks of companies considered to have large capitalizations.

SP Alliance Technology Portfolio: Growth of capital by investing primarily in securities of companies that use technology extensively in the development of new or improved products and processes.

SP Balanced Asset Allocation Portfolio: Provide a balance between current income and growth of capital by investing in fixed income portfolios, large cap equity portfolios, small/mid cap equity portfolios, and international equity Portfolios. The Portfolio will achieve this by investing in other Series Fund Portfolios.

SP Conservative Asset Allocation Portfolio: Provide current income with low to moderate capital appreciation by investing in fixed income portfolios, large cap equity portfolios, and small/mid cap equity portfolios. The Portfolio will achieve this by investing in other Series Fund Portfolios.

SP Davis Value Portfolio: Capital growth through investments primarily in common stock of U.S. companies with market capitalization of at least $5 billion.

SP Deutsche International Equity Portfolio: Long-term capital appreciation by investing primarily in the stocks and other equity securities of companies in developed countries outside the United States.

SP Growth Asset Allocation Portfolio: Provide long-term growth of capital with consideration also given to current income by investing in large-cap equity portfolios, fixed income portfolios, international equity portfolios and small/mid-cap equity portfolios. The Portfolio will achieve this by investing in other Series Fund Portfolios.

SP INVESCO Small Company Growth Portfolio: Long-term capital growth by investing mostly in small-capitalization companies which are included in the Russell 2000 Growth Index at the time of purchase, or if not with market capitalizations under $2.5 billion.

SP Jennison International Growth Portfolio: Long-term growth of capital by investing primarily in equity-related securities of foreign issuers.

SP Large Cap Value Portfolio: Long-term growth of capital by investing primarily in common stocks of companies with large market capitalization (those with market capitalizations similar to companies in the Standard & Poor’s 500 Composite Index or the Russell 100 Index).

SP MFS Capital Opportunities Portfolio: Capital appreciation by investing primarily in common stocks and related securities, such as preferred stocks, convertible securities and depository receipts for those securities.

SP Mid-Cap Growth Portfolio: Long-term growth of capital by investing primarily in common stocks and related securities, such as preferred stocks, convertible securities and depository receipts for those securities.

SP PIMCO High Yield Portfolio: Maximum total return, consistent with preservation of capital and prudent investment management by investing primarily in a diversified portfolio of high yield/high risk securities rated below investment grade but rated at least B by Moody’s or S&P, or, if unrated, determined by Pacific Investment Management Company (“PIMCO”) to be of comparable quality.

SP PIMCO Total Return Portfolio: Maximum total return, consistent with preservation of capital and prudent investment management by investing primarily in a diversified portfolio of fixed income instruments of varying maturities.

SP Prudential U.S. Emerging Growth Portfolio: Long-term capital appreciation by investing primarily in equity securities of small and medium-sized U.S. companies that the Portfolio manager believes have the potential for above-average growth.

SP Small/Mid-Cap Value Portfolio: Long-term growth of capital by investing primarily in common stocks of companies with small to medium market capitalization.

SP Strategic Partners Focused Growth Portfolio: Long-term capital growth by investing primarily in equity-related securities of U.S. companies that the adviser believes to have strong capital appreciation potential.

Stock Index Portfolio: Investment results that generally correspond to the price and yield performance of the S&P 500 Index by investing primarily in stocks in the S&P 500 Index.

Value Portfolio: Capital appreciation by investing in equity and equity-related securities that are undervalued.

Zero Coupon Bond Portfolio 2005: Highest predictable compound investment for a specific period of time, consistent with safety of invested capital by investing primarily in debt obligations of the U.S. Treasury and corporations, issued without interest coupons or stripped of their interest coupons.

The ability of issuers of debt securities (other than those issued or guaranteed by the U.S. Government) held by the Portfolios to meet their obligations may be affected by the economic or political developments in a specific industry, region or country.

Note 2:

Accounting Policies

The following is a summary of significant accounting policies followed by the Series Fund and the Portfolios in preparation of their financial statements.

Securities Valuation: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation, there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities traded via NASDAQ are valued at the official closing price provided by NASDAQ. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”) in consultation with the subadvisor, to be over-the-counter, are valued at market value by an independent pricing agent or principal market maker. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Series Fund’s normal pricing time, are valued at fair value in accordance with Board of Directors’ approved fair valuation procedures.

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

The Money Market, Conservative Balanced and Flexible Managed Portfolios use amortized cost to value short-term securities. Short-term securities that are held in the other Portfolios which mature in more than 60 days are valued at current market quotations and those short-term securities which mature in 60 days or less are valued at amortized cost which approximates market value. The amortized cost method values a security at its cost at the time of purchase and there after assumes a constant amortization to maturity of any discount or premium.

Restricted Securities: The High Yield Bond Portfolio, the SP PIMCO High Yield Portfolio and the SP PIMCO Total Return Portfolio may hold up to 15% of their net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Certain issues of restricted securities held by the High Yield Bond Portfolio, the SP PIMCO High Yield Portfolio and the SP PIMCO Total Return Portfolio at December 31, 2003 may include registration rights, under which the Portfolios may demand registration by the issuer, of which the Portfolio may bear the cost of such registration. Restricted securities, sometimes referred to as private placements, are valued pursuant to the valuation procedures noted above.

Repurchase Agreements: In connection with transactions in repurchase agreements with United States financial institutions, it is the Series Fund’s policy that its custodian or designated subcustodians, as the case may be under triparty repurchase agreements, take possession of the underlying collateral securities, the value of which exceeds 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 on a daily basis 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 Series Fund may by delayed or limited.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities – at the current daily rates of exchange.

(ii) purchases and sales of investment securities, income and expenses – at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Series Fund are presented at the foreign exchange rates and market values at the close of the period, the Series Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term securities held at the end of the period. Similarly, the Series Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, these realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the holding of foreign currencies, currency gains (losses) realized between the trade date and settlement date on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Series Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on investments and foreign currencies.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political and economic instability or the level of governmental supervision and regulation of foreign securities markets.

Forward Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Certain Portfolios of the Series Fund may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency. The contracts are valued daily at current exchange rates and any unrealized gain (loss) is included in net unrealized appreciation (depreciation) on investments and foreign currencies. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and renegotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

Short Sales: Certain portfolios of the Series Fund may make short sales of securities as a method of hedging potential price declines in similar securities owned. The Portfolio may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Portfolio makes a short sale, it will borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Portfolio may have to pay a fee to borrow the particular security and may be obligated to return any interest or dividends received on such borrowed securities. The fee may be referred to as the “initial margin.” Subsequent payments known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the value of the security sold short. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). A gain, limited to the price at which the Portfolio sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than the proceeds originally received, respectively, and is presented in the Statement of Operations as net realized gain or loss on short sales.

Loan Participations: The High Yield Bond and PIMCO High Yield Portfolios may invest in loan participations. When the Portfolio purchases a loan participation, the Portfolio typically enters into a contractual relationship with the lender or third party selling such participations (“Selling Participant”), but not the borrower. As a result, the Portfolio assumes the credit risk of the borrower, the selling participant and any other persons interpositioned between the Portfolio and the borrower (“intermediate participants”). The Portfolio may not directly benefit from the collateral supporting the senior loan in which it has purchased the loan participant.

Options: The Series Fund may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates with respect to securities which the Series Fund currently owns or intends to purchase. The Series Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Series Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Series Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Series Fund realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Series Fund has realized a gain (loss). The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on written option transactions.

The Series Fund, as writer of an option, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Series Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Series Fund, as purchaser of an option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Series Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin”. Subsequent payments, known as “variation margin”, are made or received by the Series Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on financial futures contracts.

The Series Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Series Fund intends to purchase, against fluctuations in value caused by changes in prevailing rates or market conditions. Under a variety of circumstances, the Series Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts and the underlying hedged assets.

Forward currency contracts, written options and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

Securities Lending: The Series Fund, excluding Money Market, may lend its portfolio securities to broker-dealers. The loans are secured by collateral at least equal at all times to the market value of the securities loaned. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the lender securities identical to the loaned securities. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities using the collateral in the open market. The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The Series also continues to receive interest and dividends or amounts equivalent thereto on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.

Swaps: Certain Portfolios of the Series Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The Portfolios enter into interest rate, forward swap spread lock and credit default swap agreements to manage its exposure to interest rates and credit risk. Interest rate swap agreements involve the exchange by the

Portfolios with another party of their respective commitments to pay or receive interest. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap. The swap spread is the difference between the benchmark swap rate (market rate) and the specific Treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate issues or sovereign issues of an emerging country, on its obligation. Dividends and interest on the securities in the swap are included in the value of the exchange. The swaps are valued daily at current market value and any unrealized gain or loss is included in the Statement of Assets and Liabilities. Gain or loss is realized on the termination date of the swap and is equal to the difference between the Portfolio’s basis in the swap and the proceeds of the closing transaction, including any fees. During the period that the swap agreement is open, the Portfolio’s may be subject to risk from the potential inability of the counterparty to meet the terms of the agreement.

When-Issued/Delayed Delivery Securities: Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. At the time a Portfolio enters into such transactions, it instructs the custodian to segregate assets with a current value at least equal to the amount of its when-issued or delayed-delivery purchase commitments.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (loss) on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date; interest income, which is comprised of four elements: stated coupon, original issue discount, market discount and market premium, is recorded on the accrual basis. Expenses are recorded on the accrual basis. The Series Fund’s expenses are allocated to the respective Portfolios on the basis of relative net assets except for Portfolio specific expenses which are attributable directly to a Portfolio or class level. The only expense charged to SP Aggressive Growth Asset Allocation Portfolio, SP Balanced Asset Allocation Portfolio, SP Conservative Asset Allocation Portfolio, and SP Growth Allocation Portfolio is a management fee. All other expenses attributable to these Portfolios are borne by PI, the Portfolios’ investment advisor (see Note 3).

For Portfolio’s with multiple classes of shares, net investment income (loss), expenses (other than administration and distribution fees, which are charged to the respective class) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.

Custody Fee Credits: The Series Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits are presented as a reduction of gross expenses in the accompanying Statements of Operations.

Taxes: For federal income tax purposes, each Portfolio in the Series Fund is treated as a separate taxpaying entity. It is each Portfolio’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to shareholders. Therefore, no federal income tax provision is required.

Withholding taxes on foreign dividends, interest and capital gains are recorded net of reclaimable amounts at the time the related income is earned.

Dividends and Distributions: Dividends and distributions of each Portfolio are declared in cash and automatically reinvested in additional shares of the same Portfolio. The Money Market Portfolio will declare and reinvest dividends from net investment income and net realized capital gains daily. The Diversified Bond, Government Income, High Yield Bond, Zero Coupon Bond 2005, SP PIMCO High Yield and SP PIMCO Total Return Portfolios will declare and distribute dividends from net investment income, if any, quarterly and distributions from net capital gains, if any, at least annually. All other Portfolios will declare and distribute dividends from net investment income and distributions from net capital gains, if any, at least annually. Dividends and distributions are recorded on the ex-dividend date.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles.

Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

Note 3:

Agreements

The Series Fund has a management agreement with PI. Pursuant to this agreement PI has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services. PI has entered into subadvisory agreements with Prudential Investment Management, Inc. (“PIM”), Jennison Associates LLC (“Jennison”), AIM Capital Management, Inc. (“AIM”), Alliance Capital Management, LP (“Alliance”), Davis Selected Advisers, LP (“Davis”), Calamos Investments (“Calamos”), RS Investment Management, L.P. (“RS”), GE Asset Management (“GEAM”), Salomon Brothers Asset Management (“Salomon”), Deutsche Asset Management, Inc. (“Deutsche”), INVESCO Funds Group, Inc. (“INVESCO”), Fidelity Management & Research Company (“Fidelity”), Massachusetts Financial Services Company (“MFS”), Pacific Investment Management Company LLC (“PIMCO”) and EARNEST Partners LLC (“EARNEST”) (collectively, the “Subadvisers”), under which each provides investment advisory services for certain Portfolios of the Series Fund. PI pays for the services of the Subadvisers, compensation of officers of the Series Fund, occupancy and certain clerical and administrative expenses of the Series Fund. The Series Fund bears all other costs and expenses.

The management fee paid to PI is computed daily and payable monthly, at the annual rates specified below, of the value of each of the Portfolio’s average daily net assets.


Portfolio	Management Fee
Conservative Balanced Portfolio	0.55	%
Diversified Bond Portfolio	0.40
Diversified Conservative Growth Portfolio	0.75
Equity Portfolio	0.45
Flexible Managed Portfolio	0.60
Global Portfolio	0.75
Government Income Portfolio	0.40
High Yield Bond Portfolio	0.55
Jennison Portfolio	0.60
Jennison 20/20 Focus Portfolio	0.75
Money Market Portfolio	0.40
Natural Resources Portfolio	0.45
Small Capitalization Stock Portfolio	0.40
SP Aggressive Growth Asset Allocation Portfolio	0.05
SP AIM Aggressive Growth Portfolio	0.95
SP AIM Core Equity Portfolio	0.85
SP Alliance Large Cap Growth Portfolio	0.90
SP Alliance Technology Portfolio	1.15
SP Balanced Asset Allocation Portfolio	0.05
SP Conservative Asset Allocation Portfolio	0.05
SP Davis Value Portfolio	0.75
SP Deutsche International Equity Portfolio	0.90
SP Growth Asset Allocation Portfolio	0.05
SP INVESCO Small Company Growth Portfolio	0.95
SP Jennison International Growth Portfolio	0.85
SP Large Cap Value Portfolio	0.80
SP MFS Capital Opportunities Portfolio	0.75
SP Mid-Cap Growth Portfolio	0.80
SP PIMCO High Yield Portfolio	0.60
SP PIMCO Total Return Portfolio	0.60
SP Prudential U.S. Emerging Growth Portfolio	0.60
SP Small/Mid-Cap Value Portfolio	0.90
SP Strategic Partners Focused Growth Portfolio	0.90
Stock Index Portfolio	0.35
Value Portfolio	0.40
Zero Coupon Bond Portfolio 2005	0.40

The Subadvisers provide investment advisory services to the Portfolios as follows. Where more than one Subadviser is listed, each Subadviser provides services to a segment of the Portfolio:


Portfolio		Subadviser(s)
Conservative Balanced Portfolio		PIM
Diversified Bond Portfolio		PIM
Diversified Conservative Growth Portfolio		EARNEST, RS, Jennison, PIMCO, PIM
Equity Portfolio		Jennison, GEAM, Salomon
Flexible Managed Portfolio		PIM
Global Portfolio		Jennison
Government Income Portfolio		PIM
High Yield Bond Portfolio		PIM
Jennison Portfolio		Jennison
Jennison 20/20 Focus Portfolio		Jennison
Money Market Portfolio		PIM
Natural Resources Portfolio		Jennison
Small Capitalization Stock Portfolio		PIM
SP AIM Aggressive Growth Portfolio		AIM
SP AIM Core Equity Portfolio		AIM
SP Alliance Large Cap Growth Portfolio		Alliance
SP Alliance Technology Portfolio(a)		Alliance
SP Davis Value Portfolio		Davis
SP Deutsche International Equity Portfolio		Deutsche
SP INVESCO Small Company Growth Portfolio		INVESCO
SP Jennison International Growth Portfolio		Jennison
SP Large Cap Value Portfolio(a)		Fidelity
SP MFS Capital Opportunities Portfolio		MFS
SP Mid-Cap Growth Portfolio		Calamos
SP PIMCO High Yield Portfolio		PIMCO
SP PIMCO Total Return Portfolio		PIMCO
SP Prudential U.S. Emerging Growth Portfolio		Jennison
SP Small/Mid-Cap Value Portfolio(a)		Fidelity
SP Strategic Partners Focused Growth Portfolio		Alliance, Jennison
Stock Index Portfolio		PIM
Value Portfolio		Jennison
Zero Coupon Bond Portfolio 2005		PIM

(a) See Note 9 for subadvisory changes occurring after December 31, 2003

The Series Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the Class I and Class II shares of the Series Fund. The Series Fund compensates PIMS for distributing and servicing the Series Fund’s Class II shares pursuant to a plan of distribution (the “Class II Plan”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class I shares of the Series Fund. Pursuant to the Class II Plan, the Class II shares of each Portfolio compensate PIMS for distribution-related activities at an annual rate of 0.25% of the average daily net assets of the Class II shares.

The Series Fund has an administration agreement with PI which acts as the administrator of the Class II shares of the Series Fund. The administration fee paid to PI is accrued daily and payable monthly, at the annual rate of 0.15% of the average daily net assets of the Class II shares.

PI has agreed to reimburse each Portfolio (other than the Diversified Conservative Growth, Jennison 20/20 Focus, Global, SP Aggressive Growth Asset Allocation, SP Balanced Asset Allocation, SP Conservative Asset Allocation and SP Growth Asset Allocation Portfolios) the portion of the management fee for that Portfolio

equal to the amount that the aggregate annual ordinary operating expenses (excluding interest, taxes, and brokerage commissions) exceeded the percentage stated below, of the Portfolio’s average daily net assets.


Portfolio	Class I Expense limit		Class II Expense limit
Conservative Balanced Portfolio	0.75	%	N/A
Diversified Bond Portfolio	0.75		N/A
Equity Portfolio	0.75		1.15	%
Flexible Managed Portfolio	0.75		N/A
Government Income Portfolio	0.75		N/A
High Yield Bond Portfolio	0.75		N/A
Jennison Portfolio	0.75		1.15
Money Market Portfolio	0.75		N/A
Natural Resources Portfolio	0.75		N/A
Small Capitalization Stock Portfolio	0.75		N/A
SP AIM Aggressive Growth Portfolio	1.07		N/A
SP AIM Core Equity Portfolio	1.00		N/A
SP Alliance Large Cap Growth Portfolio	1.10		N/A
SP Alliance Technology Portfolio	1.30		N/A
SP Davis Value Portfolio	0.83		N/A
SP Deutsche International Equity Portfolio	1.10		N/A
SP INVESCO Small Company Growth Portfolio	1.15		N/A
SP Jennison International Growth Portfolio	1.24		1.64
SP Large Cap Value Portfolio	0.90		N/A
SP MFS Capital Opportunities Portfolio	1.00		N/A
SP Mid-Cap Growth Portfolio	1.00		N/A
SP PIMCO High Yield Portfolio	0.82		N/A
SP PIMCO Total Return Portfolio	0.76		N/A
SP Prudential U.S. Emerging Growth Portfolio	0.90		1.30
SP Small/Mid-Cap Value Portfolio	1.05		N/A
SP Strategic Partners Focused Growth Portfolio	1.01		1.41
Stock Index Portfolio	0.75		N/A
Value Portfolio	0.75		1.15
Zero Coupon Bond Portfolio 2005	0.75		N/A

N/A – Not applicable – Portfolio does not currently have Class II shares.

PIMS, PI, PIM and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 4:

Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Series Fund’s transfer agent. Transfer agent fees and expenses in the Statements of Operations include certain out-of-pocket expense paid to nonaffiliates, where applicable. During the year ended December 31, 2003, the Series Fund incurred fees for the services of PMFS and as of December 31, 2003 fees were due to PMFS as follows:


Portfolio	Amount Incurred for the Year Ended December 31, 2003		Amount Due as of December 31, 2003
Conservative Balanced Portfolio	$	2,100	$	200
Diversified Bond Portfolio		2,700		200
Diversified Conservative Growth Portfolio		500		—
Equity Portfolio		5,200		400
Flexible Managed Portfolio		2,200		200
Global Portfolio		4,900		400
Government Income Portfolio		1,400		100
High Yield Bond Portfolio		2,600		200
Jennison Portfolio		6,400		500


Portfolio	Amount Incurred for the Year Ended December 31, 2003		Amount Due as of December 31, 2003
Jennison 20/20 Focus Portfolio	$	1,000	$	100
Money Market Portfolio		5,300		400
Natural Resources Portfolio		1,400		100
Small Capitalization Stock Portfolio		2,000		100
SP AIM Aggressive Growth Portfolio		3,200		300
SP AIM Core Equity Portfolio		3,000		300
SP Alliance Large Cap Growth Portfolio		3,800		300
SP Alliance Technology Portfolio		3,100		300
SP Davis Value Portfolio		4,100		300
SP Deutsche International Equity Portfolio		3,900		300
SP INVESCO Small Company Growth Portfolio		3,600		300
SP Jennison International Growth Portfolio		4,800		400
SP Large Cap Value Portfolio		3,600		300
SP MFS Capital Opportunities Portfolio		3,300		300
SP Mid-Cap Growth Portfolio		4,100		300
SP PIMCO High Yield Portfolio		3,900		300
SP PIMCO Total Return Portfolio		4,500		400
SP Prudential U.S. Emerging Growth Portfolio		4,300		400
SP Small/Mid-Cap Value Portfolio		4,300		400
SP Strategic Partners Focused Growth Portfolio		3,400		300
Stock Index Portfolio		5,400		400
Value Portfolio		5,400		400
Zero Coupon Bond Portfolio 2005		500		50

Effective July 1, 2003, PIM became the Series Fund’s securities lending agent. Prior to July 1, 2003, Prudential Securities, Inc. (“PSI”) was the securities lending agent for the Series Fund. PSI was an indirect, wholly-owned subsidiary of Prudential. For the year ended December 31, 2003, PSI and PIM were compensated as follows for these services by the Series Fund Portfolios:


	PSI		PIM
Conservative Balanced Portfolio	$	55,359	$	107,342
Diversified Bond Portfolio		26,473		52,415
Equity Portfolio		53,787		83,603
Flexible Managed Portfolio		56,497		133,793
Global Portfolio		56,970		28,595
Government Income Portfolio		20,028		30,890
High Yield Bond Portfolio		60,261		123,119
Jennison Portfolio		36,397		53,450
Natural Resources Portfolio		71,508		66,395
Small Capitalization Stock Portfolio		37,617		55,641
SP Jennison International Growth Portfolio		5,181		13,361
Stock Index Portfolio		40,862		75,930
Value Portfolio		7,839		30,947

Effective July 1, 2003, Prudential and Wachovia Corp. formed a joint venture (“Wachovia Securities LLC” or “Wachovia”) whereby Prudential and Wachovia Corp. combined their brokerage business with Prudential holding a minority interest.

For the year ended December 31, 2003, PSI and Wachovia earned brokerage commissions from transactions executed on behalf of the Series Fund Portfolios as follows:


	Commissions
Portfolio	PSI		Wachovia
Diversified Conservative Growth Portfolio		—	$	120
Equity Portfolio	$	14,413		56,194
Jennison Portfolio		23,216		—
SP AIM Aggressive Growth Portfolio		136		5

C10


	Commissions
Portfolio	PSI		Wachovia
SP AIM Core Equity Portfolio	$	5	—
SP Alliance Technology Portfolio		124	—
SP Large Cap Value Portfolio		—	325
SP MFS Capital Opportunities Portfolio		184	—
SP Small/Mid Cap Cap Value Portfolio		545	—

Certain Portfolios invest in the Taxable Money Market Series (the “Series”), a portfolio of Dryden Core Investment Fund, formerly known as Prudential Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Series is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI. During the year ended December 31, 2003, the following Portfolios earned income from the Series by investing their excess cash and cash collateral from securities lending. See Note 2 relating to Securities Lending:


Portfolio	Excess Cash Investment		Securities Lending Cash Collateral Investment
Conservative Balanced Portfolio	$	6,844,866	$	1,182,886
Diversified Bond Portfolio		4,423,759		266,172
Diversified Conservative Growth Portfolio		69,961		—
Equity Portfolio		792,816		412,169
Flexible Managed Portfolio		7,499,537		922,569
Global Portfolio		121,420		258,514
Government Income Portfolio		1,317,718		157,928
High Yield Bond Portfolio		453,080		550,221
Jennison Portfolio		252,567		269,538
Jennison 20/20 Focus Portfolio		48,148		—
Natural Resources Portfolio		58,651		413,708
Small Capitalization Stock Portfolio		62,769		279,773
SP Jennison International Growth Portfolio		157,281		55,625
SP Prudential U.S. Emerging Growth Portfolio		79,822		—
Stock Index Portfolio		767,811		352,351
Value Portfolio		1,107,272		134,130
Zero Coupon Bond Portfolio 2005		13,358		—

Note 5:

Portfolio Securities

The aggregate cost of purchases and the proceeds from the sales of securities (excluding U.S. government securities and short-term issues) for the year ended December 31, 2003 were as follows:

Cost of Purchases:


Portfolio
Conservative Balanced Portfolio	$	491,564,466
Diversified Bond Portfolio		1,342,563,423
Diversified Conservative Growth Portfolio		160,492,375
Equity Portfolio		1,825,914,673
Flexible Managed Portfolio		1,974,764,395
Global Portfolio		478,901,186
Government Income Portfolio		10,011,361
High Yield Bond Portfolio		1,022,816,335
Jennison Portfolio		1,068,282,628
Jennison 20/20 Focus Portfolio		90,225,992
Natural Resources Portfolio		84,787,939
Small Capitalization Stock Portfolio		72,616,074
SP Aggressive Growth Asset Allocation Portfolio		42,935,239
SP AIM Aggressive Growth Portfolio		20,762,835
SP AIM Core Equity Portfolio		10,793,927

C11


Portfolio
SP Alliance Large Cap Growth Portfolio	$	103,059,511
SP Alliance Technology Portfolio		19,340,241
SP Balanced Asset Allocation Portfolio		282,669,722
SP Conservative Asset Allocation Portfolio		180,691,465
SP Davis Value Portfolio		158,486,473
SP Deutsche International Equity Portfolio		109,308,118
SP Growth Asset Allocation Portfolio		215,806,959
SP INVESCO Small Company Growth Portfolio		37,868,420
SP Jennison International Growth Portfolio		199,253,255
SP Large Cap Value Portfolio		58,704,301
SP MFS Capital Opportunities Portfolio		14,502,344
SP Mid-Cap Growth Portfolio		54,824,687
SP PIMCO High Yield Portfolio		217,691,561
SP PIMCO Total Return Portfolio		448,478,444
SP Prudential U.S. Emerging Growth Portfolio		272,376,645
SP Small/Mid-Cap Value Portfolio		235,761,126
SP Strategic Partners Focused Growth Portfolio		34,802,761
Stock Index Portfolio		59,076,489
Value Portfolio		863,760,414
Zero Coupon Bond Portfolio 2005		—

Proceeds from Sales:


Portfolio
Conservative Balanced Portfolio	$	431,649,668
Diversified Bond Portfolio		1,214,868,981
Diversified Conservative Growth Portfolio		154,327,236
Equity Portfolio		2,052,456,066
Flexible Managed Portfolio		1,925,950,262
Global Portfolio		495,243,914
Government Income Portfolio		7,231,385
High Yield Bond Portfolio		877,772,136
Jennison Portfolio		1,079,885,429
Jennison 20/20 Focus Portfolio		74,405,987
Natural Resources Portfolio		102,127,704
Small Capitalization Stock Portfolio		83,791,363
SP Aggressive Growth Asset Allocation Portfolio		6,721,071
SP AIM Aggressive Growth Portfolio		11,499,459
SP AIM Core Equity Portfolio		5,683,983
SP Alliance Large Cap Growth Portfolio		34,423,402
SP Alliance Technology Portfolio		9,879,121
SP Balanced Asset Allocation Portfolio		32,341,403
SP Conservative Asset Allocation Portfolio		40,768,690
SP Davis Value Portfolio		16,888,827
SP Deutsche International Equity Portfolio		60,679,770
SP Growth Asset Allocation Portfolio		31,333,083
SP INVESCO Small Company Growth Portfolio		23,166,334
SP Jennison International Growth Portfolio		114,740,770
SP Large Cap Value Portfolio		37,141,236
SP MFS Capital Opportunities Portfolio		7,389,557
SP Mid-Cap Growth Portfolio		24,136,227
SP PIMCO High Yield Portfolio		110,818,034
SP PIMCO Total Return Portfolio		420,784,701
SP Prudential U.S. Emerging Growth Portfolio		193,687,425
SP Small/Mid-Cap Value Portfolio		133,249,046
SP Strategic Partners Focused Growth Portfolio		22,577,107
Stock Index Portfolio		100,527,554
Value Portfolio		1,015,347,797
Zero Coupon Bond Portfolio 2005		—

C12

The Equity, Diversified Conservative Growth, Global, Government Income, Jennison, SP INVESCO Small Company Growth, SP PIMCO High Yield, SP PIMCO Total Return and SP Prudential U.S. Emerging Growth Portfolios’ written options activity for the year ended December 31, 2003 were as follows:



Equity Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	—		$	—
Options written	1,105			11,049
Options expired	(1,105	)		(11,049	)

Balance as of December 31, 2003	—		$	—


Diversified Conservative Growth Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	10,200,000		$	164,218
Options written	15,700,027			239,625
Options terminated in closing purchase transactions	(4,700,008	)		(48,406	)
Options expired	(6,000,019	)		(79,955	)

Balance as of December 31, 2003	15,200,000		$	275,482


Global Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	—		$	—
Options written	363			3,630
Options expired	(363	)		(3,630	)

Balance as of December 31, 2003	—		$	—


Government Income Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	—		$	—
Options written	81,075,280			570,952
Options expired	(81,075,280	)		(570,952	)

Balance as of December 31, 2003	—		$	—


Jennison Portfolio
	Contracts			Premiums
Balance as of December 31, 2002	—		$	—
Options written	854			8,540
Options expired	(854	)		(8,540	)

Balance as of December 31, 2003	—		$	—


SP INVESCO Small Company Growth Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	—		$	—
Options written	39			3,107
Options terminated in closing purchase transactions	(30	)		(1,153	)
Options expired	(9	)		(1,954	)

Balance as of December 31, 2003	—		$	—


SP PIMCO High Yield Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	17,000,100		$	419,632
Options written	131			137,597
Options terminated in closing purchase transactions	(17,000,062	)		(459,141	)
Options expired	(134	)		(70,329	)
Options exercised	(35	)		(27,759	)

Balance as of December 31, 2003	—		$	—

C13



SP PIMCO Total Return Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	81,900,000		$	1,199,750
Options written	257,100,225			4,798,018
Options terminated in closing purchase transactions	(43,600,064	)		(471,020	)
Options expired	(46,200,108	)		(623,332	)
Options exercised	(53	)		(41,208	)

Balance as of December 31, 2003	249,200,000		$	4,862,208


SP Prudential U.S. Emerging Growth Portfolio
	Contracts		Premiums
Balance as of December 31, 2002	—		$	—
Options written	976			163,953
Options terminated in closing purchase transactions	(427	)		(79,566	)
Options expired	(549	)		(84,387	)

Balance as of December 31, 2003	—		$	—

The Diversified Conservative Portfolio and the SP PIMCO Total Return Portfolios entered into interest rate swap agreements during the year. Details of the swap agreements outstanding as of December 31, 2003 were as follows:



Diversified Conservative Growth Portfolio:
Counterparty	Termination Date	Notional Amount (000)	Fixed Rate	Floating Rate	Unrealized Appreciation (Depreciation)
Goldman Sachs & Co. (b)	09/15/05	EUR 5,300	3.50%	6 month Euribor	$	17,912
Barclays Capital (b)	09/15/05	EUR 5,000	3.50%	6 month Euribor		3,996
Morgan Stanley Capital (b)	03/17/05	GBP 1,200	4.25%	6 month LIBOR		(4,621	)
Morgan Stanley Capital (a)	06/02/12	JPY 80,000	1.07%	6 month LIBOR		18,228
Goldman Sachs & Co. (a)	06/02/12	JPY 70,000	1.07%	6 month LIBOR		22,056
Merrill Lynch & Co. (a)	06/16/09	$500	4.00%	3 month LIBOR		(2,016	)
UBS Warburg (a)	06/16/14	EUR 3,500	5.00%	6 month Euribor		(67,853	)
Goldman Sachs & Co. (a)	06/16/14	$200	5.00%	3 month LIBOR		(2,622	)
Goldman Sachs & Co. (a)	06/16/09	$2,900	4.00%	3 month LIBOR		(11,693	)

					$	(26,613	)

C14



SP PIMCO Total Return Portfolio:
Counterparty	Termination Date	Notional Amount (000)		Fixed Rate	Floating Rate	Unrealized Appreciation (Depreciation)
Merrill Lynch & Co. (b)	03/29/05	CHF	60,400	1.50%	3 month Euribor	$	82,190
J.P. Morgan (b)	03/29/05	CHF	14,100	1.50%	3 month Euribor		23,703
Goldman Sachs & Co. (b)	09/15/05	EUR	118,900	3.50%	6 month Euribor		401,186
Merrill Lynch & Co. (b)	06/18/07	EUR	11,800	4.50%	6 month Euribor		511,131
Citibank N.A. London (a)	06/17/12	EUR	5,600	5.00%	6 month Euribor		(463,333	)
UBS Warburg (a)	06/16/14	EUR	34,100	5.00%	6 month Euribor		(661,083	)
Lehman Brothers (a)	12/15/31	EUR	3,000	5.50%	6 month Euribor		(212,759	)
Goldman Sachs & Co. (b)	06/17/04	GBP	200	5.50%	6 month LIBOR		2,715
UBS Warburg (b)	03/15/04	GBP	5,300	5.25%	6 month LIBOR		(43,937	)
UBS Warburg (b)	03/15/04	GBP	1,000	5.25%	6 month LIBOR		786
J.P. Morgan (b)	12/17/05	GBP	13,500	4.00%	6 month LIBOR		(47,493	)
Goldman Sachs & Co. (a)	06/02/12	JPY	1,295,000	1.07%	6 month LIBOR		408,044
Morgan Stanley Capital (a)	06/02/12	JPY	790,000	1.07%	6 month LIBOR		179,165
UBS Warburg (b)	09/15/05	$	3,700	3.25%	3 month LIBOR		6,616
Bank of America Securities LLC (b)	06/16/09	$	18,200	4.00%	3 month LIBOR		75,566
Merrill Lynch & Co. (a)	06/16/24	$	9,700	5.00%	3 month LIBOR		(138,409	)
J.P. Morgan (a)	12/17/05	$	13,500	4.00%	3 month LIBOR		(127,224	)
Goldman Sachs & Co. (a)	06/16/14	$	2,600	5.00%	3 month LIBOR		(34,086	)

						$	(37,222	)

(a) Portfolio pays the fixed rate and receives the floating rate.
(b) Portfolio pays the floating rate and receives the fixed rate.

The Diversified Conservative Growth and SP PIMCO Total Return Portfolios entered into forward swap spread lock agreements during the year ended December 31, 2003. Details of the swap agreements outstanding as of December 31, 2003 were as follows:

Diversified Conservative Growth Portfolio:

Counterparty

Observation

Date

Notional

Amount

Spread

Lock

Underlying

Bond

Unrealized
Appreciation

(Depreciation)

U.S. T-Bond,

Bank of America Securities LLC (a)

1/15/04

900,000

0.18%

6.25%, 8/15/23

1,758

SP PIMCO Total Return Portfolio:

Counterparty

Observation

Date

Notional

Amount

Spread

Lock

Underlying

Bond

Unrealized
Appreciation

U.S. T-Bond,

Bank of America Securities LLC (a)

1/15/04

5,600,000

0.18%

6.25%, 8/15/23

10,936

(a) Portfolio receives the excess of the swap spread over the fixed rate and pays the excess of the fixed rate over the swap spread.

C15

The Diversified Conservative Growth and SP PIMCO Total Return Portfolios entered into credit default swap agreements during the year ended December 31, 2003. Details of the swap agreements outstanding as of December 31, 2003 were as follows:



Diversified Conservative Growth Portfolio:
Counterparty(a)	Termination Date	Notional Amount (000)		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Barclays	12/20/2008	$	200	0.16	%	Eli Lilly & Co., Inc., 6.00%, due 3/15/12	$	280
Citigroup	12/20/2008		100	0.29	%	FedEx Corp., 7.25%, due 2/15/11		(378	)
Morgan Stanley	12/20/2008		100	0.21	%	Emerson Electric Co., 4.625%, due 10/15/12		186
Merrill Lynch	12/20/2008		100	0.32	%	Ingersoll-Rand Co., 6.48%, due 6/1/25		46
Morgan Stanley	12/20/2008		200	0.26	%	Allstate Corp., 6.125%, due 2/15/12		(98	)
Bear Stearns	12/20/2008		200	0.32	%	Hewlett Packard Co., 6.50%, due 7/1/12		(654	)
Citigroup	12/20/2008		200	0.28	%	Eaton Corp., 5.75%, due 7/15/12		(186	)
Citigroup	12/20/2008		300	0.14	%	Wal-Mart Stores, Inc., 6.875%, due 8/10/09		140
Lehman Brothers	12/20/2008		200	0.12	%	The Home Depot, Inc., 5.375%, due 4/1/06		93
Lehman Brothers	12/20/2008		100	0.29	%	Whirlpool Corp., 8.60%, due 5/1/10		185
Lehman Brothers	12/20/2008		200	0.11	%	Johnson & Johnson, 3.80%, due 5/15/13		(94	)
UBS	12/20/2008		200	0.35	%	AutoZone, Inc., 5.875%, due 10/15/12		913
Lehman Brothers	12/20/2008		100	0.35	%	RadioShack Corp., 7.375%, due 5/15/11		226
Lehman Brothers	12/20/2008		100	0.30	%	Masco Corp., 5.875%, due 7/15/12		(233	)
Lehman Brothers	12/20/2008		100	0.53	%	Lockheed Martin Corp., 8.20%, due 12/1/09		(375	)
Barclays	12/20/2008		100	0.67	%	Clear Channel Communications Inc., 7.65%, due 9/15/10		(801	)
UBS	12/20/2008		100	0.98	%	Sun Microsystems, Inc., 7.65% due 8/15/09		(1,285	)
Lehman Brothers	12/20/2008		100	0.97	%	Goodrich Corp., 7.625%, due 12/15/12		(2,163	)
Lehman Brothers	12/20/2008		100	0.48	%	Northrop Grumman Corp., 7.125%, due 2/15/11		(283	)
Barclays	12/20/2008		100	0.67	%	The Walt Disney Co., 6.375%, due 3/1/12		(1,347	)
Bank of America, N.A.	12/20/2008		100	0.13	%	E.I. DuPont de Nemours & Co., 6.875%, due 10/15/09		—

							$	(5,828	)

(a) The Portfolio pays the fixed rate and receives from the counterparty, par in the event that the underlying bond defaults.



SP PIMCO Total Return Portfolio:
Counterparty(a)	Termination Date	Notional Amount (000)		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Morgan Stanley	12/20/2008	$	300	0.26	%	Allstate Corp., 6.125%, due 2/15/12	$	(203	)
Morgan Stanley	12/20/2008		2,700	0.26	%	Allstate Corp., 6.125%, due 2/15/12		(1,318	)
Merrill Lynch	12/20/2008		800	0.27	%	Anadarko Petroleum Corp., 5.0%, due 10/1/12		368
UBS	12/20/2008		3,200	0.35	%	AutoZone, Inc., 5.875%, due 10/15/12		14,606
Bear Stearns	12/20/2008		400	1.09	%	Capital One Bank, 4.875%, due 5/15/08		(1,676	)

C16


Counterparty(a)	Termination Date	Notional Amount (000)		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Bear Stearns	12/20/2008	$	100	1.09	%	Capital One Bank, 4.875%, due 5/15/08	$	(1,004	)
UBS	12/20/2008		800	0.44	%	Carnival Corp., 6.15%, due 4/15/08		1,086
Bear Stearns	12/20/2008		800	0.19	%	Caterpillar Inc., 7.250%, due 9/15/09		371
Goldman Sachs	12/20/2008		800	0.60	%	Clear Channel Communications Inc., 7.65%, due 9/15/10		(3,814	)
Barclays	12/20/2008		900	0.67	%	Clear Channel Communications Inc., 7.65%, due 9/15/10		(7,206	)
Barclays Bank PLC	12/20/2008		100	0.67	%	Clear Channel Communications, Inc., 7.65%, due 9/15/10		(470	)
Lehman Brothers	12/20/2008		100	0.24	%	Costco Wholesale Corp., 5.50%, due 3/15/07		—
Lehman Brothers	12/20/2008		700	0.24	%	Costco Wholesale Corp., 5.50%, due 3/15/07		1,913
Morgan Stanley	12/20/2008		800	0.42	%	Countrywide Home Loans, Inc., 5.625%, due 7/15/09		(786	)
Lehman Brothers	12/20/2008		1,200	0.45	%	Cox Communications, Inc., 7.75%, 11/1/10		(2,843	)
Bear Stearns	12/20/2008		800	0.24	%	Deere & Co., 7.85%, due 5/15/10		1,113
Merrill Lynch	12/20/2008		1,600	0.35	%	Devon Energy Corp., 6.875%, due 9/30/11		107
Bank of America, N.A.	12/20/2008		200	0.13	%	E.I. DuPont de Nemours & Co., 6.875%, due 10/15/09		(76	)
Bank of America, N.A.	12/20/2008		1,700	0.13	%	E.I. DuPont de Nemours & Co., 6.875%, due 10/15/09		(2	)
Citibank N.A., London	12/20/2008		300	0.28	%	Eaton Corp., 5.75%, due 7/15/12		253
Citibank N.A., London	12/20/2008		2,200	0.28	%	Eaton Corporation, 5.75%, due 7/15/12		(2,044	)
Barclays Bank PLC	12/20/2008		300	0.16	%	Eli Lilly Corp., 6.00%, due 3/15/12		(88	)
Barclays	12/20/2008		2,300	0.16	%	Eli Lilly & Co., Inc., 6.00%, due 3/15/12		3,224
Morgan Stanley	12/20/2008		200	0.21	%	Emerson Electric Co., 4.625%, due 10/15/12		504
Morgan Stanley	12/20/2008		1,600	0.21	%	Emerson Electric Co., 4.625%, due 10/15/12		2,972
Morgan Stanley	12/20/2008		800	0.22	%	Emerson Electric Co., 7.125%, due 8/15/10		1,114
Citibank N.A., London	12/20/2008		1,700	0.29	%	FedEx Corp., 7.25%, due 2/15/11		(6,432	)
Citibank N.A., London	12/20/2008		200	0.29	%	FedEx Corp., 7.25%, due 2/15/11		(510	)
Merrill Lynch	12/20/2008		600	0.22	%	Gannett Co., Inc., 6.375%, due 4/1/12		(460	)
Lehman Brothers	12/20/2008		100	0.97	%	Goodrich Corp., 7.625%, due 12/15/12		(1,197	)
Lehman Brothers	12/20/2008		900	0.97	%	Goodrich Corp., 7.625%, due 12/15/12		(19,466	)

C17


Counterparty(a)	Termination Date	Notional Amount (000)		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Bear Stearns	12/20/2008	$	300	0.32	%	Hewlett Packard Co., 6.50%, due 7/1/12	$	(590	)
Bear Stearns	12/20/2008		2,200	0.32	%	Hewlett Packard Co., 6.50%, due 7/1/12		(7,190	)
Lehman Brothers	12/20/2008		300	0.12	%	The Home Depot, Inc., 5.375%, due 4/1/06		(365	)
Lehman Brothers	12/20/2008		2,200	0.12	%	The Home Depot, Inc., 5.375%, due 4/1/06		1,024
Merrill Lynch	12/20/2008		1,400	0.32	%	Ingersoll-Rand Co., 6.48%, due 6/1/25		712
Bear Stearns	12/20/2008		800	0.60	%	International Paper Co., 6.75%, due 9/1/11		689
Lehman Brothers	12/20/2008		300	0.11	%	Johnson & Johnson, 3.80%, due 5/15/13		(256	)
Lehman Brothers	12/20/2008		2,100	0.11	%	Johnson & Johnson, 3.80%, due 5/15/13		(984	)
Morgan Stanley	12/20/2008		800	0.53	%	Kroger Co. (The), 4.75%, due 4/15/12		(783	)
Lehman Brothers	12/20/2008		100	0.53	%	Lockheed Martin Corp., 8.20%, due 12/1/09		(475	)
Lehman Brothers	12/20/2008		900	0.53	%	Lockheed Martin Corp., 8.20%, due 12/1/09		(3,372	)
Lehman Brothers	12/20/2008		100	0.30	%	Masco Corp., 5.875%, due 7/15/12		(305	)
Lehman Brothers	12/20/2008		1,200	0.30	%	Masco Corp., 5.875%, due 7/15/12		(2,795	)
Merrill Lynch	12/20/2008		1,200	0.85	%	Motorola, Inc., 7.625%, due 11/15/10		(9,365	)
Lehman Brothers	12/20/2008		100	0.48	%	Northrop Grumman Corp., 7.125%, due 2/15/11		(482	)
Lehman Brothers	12/20/2008		900	0.48	%	Northrop Grumman Corp., 7.125%, due 2/15/11		(2,545	)
Merrill Lynch	12/20/2008		800	0.28	%	Occidental Petroleum Corp., 6.75%, due 1/15/12		(1,119	)
Lehman Brothers	12/20/2008		100	0.35	%	RadioShack Corp., 7.375%, due 5/15/11		(122	)
Lehman Brothers	12/20/2008		1,200	0.35	%	RadioShack Corp., 7.375%, due 5/15/11		2,709
UBS	12/20/2008		800	0.37	%	RadioShack Corp., 7.375%, due 5/15/11		1,065
UBS	12/20/2008		800	0.44	%	Simon Property Group, L.P., 5.45%, due 3/15/13		(3,013	)
UBS	12/20/2008		100	0.98	%	Sun Microsystems, Inc., 7.65%, due 8/15/09		(1,106	)
UBS	12/20/2008		900	0.98	%	Sun Microsystems, Inc., 7.65%, due 8/15/09		(11,562	)
Citibank N.A., London	12/20/2008		3,600	0.14	%	Wal-Mart Stores, Inc., 6.875%, due 8/10/09		1,674
Bear Stearns	12/20/2008		1,500	0.15	%	Wal-Mart Stores, Inc., 6.875%, due 8/10/09		(2	)
Barclays	12/20/2008		100	0.67	%	The Walt Disney Co., 6.375%, due 3/1/12		(544	)
Barclays	12/20/2008		900	0.67	%	The Walt Disney Co., 6.375%, due 3/1/12		(12,144	)
Lehman Brothers	12/20/2008		100	0.29	%	Whirlpool Corp., 8.60%, due 5/1/10		17
Lehman Brothers	12/20/2008		1,100	0.29	%	Whirlpool Corp., 8.60%, due 5/1/10		2,034

							$	(71,159	)

(a) The Portfolio pays the fixed rate and receives from the counterparty, par in the event that the underlying bond defaults.

C18

Note 6:

Distributions and Tax Information

In order to present undistributed net investment income (loss) and accumulated net realized capital gains (losses) on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to undistributed net investment income (loss), accumulated net realized gain (loss) on investments and paid-in capital in excess of par.

For the year ended December 31, 2003 the adjustments were as follows:


Portfolio	Undistributed Net Investment Income			Accumulated Net Realized Gain (Loss)			Paid-in Capital
Conservative Balanced Portfolio(b)	$	1,111,472		$	(1,111,472	)		—
Diversified Bond Portfolio(a,b)		1,100,468			(1,100,468	)		—
Diversified Conservative Growth Portfolio(a,b)		390,119			(390,119	)		—
Equity Portfolio(a)		(109,347	)		109,347			—
Flexible Managed Portfolio(b)		872,736			(872,736	)		—
Global Portfolio(a)		2,098,668			(2,098,668	)		—
Government Income Portfolio(b)		1,134,874			(1,134,874	)		—
High Yield Bond Portfolio(a,b,d,e)		1,778,136			(281,392	)	$	(1,496,744	)
Jennison Portfolio(a)		(148,385	)		148,385			—
Natural Resources Portfolio(a,c)		14,261,755			(14,261,755	)		—
SP AIM Aggressive Growth Portfolio(f)		104,209			—			(104,209	)
SP Alliance Large Cap Growth Portfolio(f)		95,435			—			(95,435	)
SP Alliance Technology Portfolio(a,f)		122,118			(190	)		(121,928	)
SP Davis Value Portfolio(a)		(59,098	)		59,098			—
SP Deutsche International Equity Portfolio(a)		17,157			(17,157	)		—
SP INVESCO Small Company Growth Portfolio(f)		148,909			—			(148,909	)
SP Jennison International Growth Portfolio(a)		(63,601	)		63,601			—
SP MFS Capital Opportunities Portfolio(a)		(56	)		56			—
SP Mid-Cap Growth Portfolio(a,f)		243,009			(49	)		(242,960	)
SP PIMCO High Yield Portfolio(a)		33,667			(33,667	)		—
SP PIMCO Total Return Portfolio(a,b)		3,745,312			(3,745,312	)		—
SP Prudential U.S. Emerging Growth Portfolio(a,f)		540,051			(474	)		(539,577	)
SP Small/Mid-Cap Value Portfolio(a)		44			(44	)		—
SP Strategic Partners Focused Growth Portfolio(f)		110,283			—			(110,283	)

(a)	Reclassification of net foreign currency gain (loss).

(b)	Reclassification of paydown losses.

(c)	Reclassification of book to tax differences due to the sale of passive foreign investment companies.

(d)	Reclassification of income on defaulted securities.

(e)	Reclassification of expired capital loss carryforward.

(f)	Reclassification of tax operating loss.

C19

The tax character of distributions paid during the year ended December 31, 2003 were as follows:


Portfolio	Ordinary Income		Long-Term Capital Gains		Tax Return of Capital		Total Distributions
Conservative Balanced Portfolio	$	73,725,917		—		—	$	73,725,917
Diversified Bond Portfolio		57,232,060		—		—		57,232,060
Diversified Conservative Growth Portfolio		7,087,093		—		—		7,087,093
Equity Portfolio		34,657,400		—		—		34,657,400
Flexible Managed Portfolio		68,283,392		—		—		68,283,392
Global Portfolio		2,077,796		—		—		2,077,796
Government Income Portfolio		31,212,695	$	4,770,090		—		35,982,785
High Yield Bond Portfolio		108,990,863		—		—		108,990,863
Jennison Portfolio		4,049,114		—		—		4,049,114
Jennison 20/20 Focus Portfolio		127,802		—		—		127,802
Money Market		10,061,179		2,788		—		10,063,967
Natural Resources Portfolio		17,617,482		24,476,581		—		42,094,063
Small Capitalization Stock Portfolio		2,476,478		3,294,388		—		5,770,866
SP Aggressive Growth Asset Allocation Portfolio		7,077		—		—		7,077
SP AIM Core Equity Portfolio		56,574		—		—		56,574
SP Balanced Asset Allocation Portfolio		2,105,869		—		—		2,105,869
SP Conservative Asset Allocation Portfolio		2,294,484		192,383		—		2,486,867
SP Davis Value Portfolio		1,086,448		—		—		1,086,448
SP Deutsche International Equity Portfolio		499,019		—		—		499,019
SP Growth Asset Allocation Portfolio		797,294		—		—		797,294
SP MFS Capital Opportunities Portfolio		14,769		—		—		14,769
SP PIMCO High Yield Portfolio		11,263,009		—		—		11,263,009
SP PIMCO Total Return Portfolio		25,070,739		3,946,311		—		29,017,050
SP Small/Mid-Cap Value Portfolio		37,628		—		—		37,628
Stock Index Portfolio		36,873,448		88,278,910		—		125,152,358
Value Portfolio		19,948,999		—	$	112,106		20,061,105
Zero Coupon Bond Portfolio 2005		2,875,037		57,155		—		2,932,192

C20

The tax character of distributions paid during the year ended December 31, 2002 were as follows:


Portfolio	Ordinary Income		Long-Term Capital Gains		Tax Return of Capital		Total Distributions
Conservative Balanced Portfolio	$	8,002,898		—		—	$	8,002,898
Diversified Bond Portfolio		159,965,745		—	$	1,784,789		161,750,534
Diversified Conservative Growth Portfolio		391,218		—		—		391,218
Equity Portfolio		34,105,123		—		—		34,105,123
Flexible Managed Portfolio		106,760,860		—		—		106,760,860
Global Portfolio		7,749,158		—		—		7,749,158
Government Income Portfolio		36,024,231	$	2,106,946		—		38,131,177
High Yield Bond Portfolio		158,619,952		—		—		158,619,952
Jennison Portfolio		3,653,967		—		—		3,653,967
Jennison 20/20 Focus Portfolio		15,466		—		—		15,466
Money Market Portfolio		19,273,152		—		—		19,273,152
Natural Resources Portfolio		2,081,611		4,236,125		—		6,317,736
Small Capitalization Stock Portfolio		6,172,710		6,444,405		—		12,617,115
SP Balanced Asset Allocation Portfolio		7,711		75,568		—		83,279
SP Conservative Asset Allocation Portfolio		217,498		51,167		—		268,665
SP Davis Value Portfolio		13,744		—		—		13,744
SP Growth Asset Allocation Portfolio		—		21,973		—		21,973
SP Large Cap Value Portfolio		403,360		—		6,059		409,419
SP PIMCO High Yield Portfolio		6,187,069		—		—		6,187,069
SP PIMCO Total Return Portfolio		8,922,623		—		—		8,922,623
SP Small/Mid-Cap Value Portfolio		463,177		—		—		463,177
Stock Index Portfolio		36,375,059		21,938,148		—		58,313,207
Value Portfolio		20,340,952		—		—		20,340,952
Zero Coupon Bond Portfolio 2005		5,442,907		544,728		—		5,987,635

C21

At December 31, 2003, the components of distributable earnings on a tax basis and approximate capital loss carryforwards were as follows:


Portfolio	Accumulated Ordinary Income		Accumulated Long-Term Capital Gains		Approximate Capital Loss Carryforward(a)			Expiration
Portfolio	Accumulated Ordinary Income		Accumulated Long-Term Capital Gains		Approximate Capital Loss Carryforward(a)			2008		2009		2010		2011
Conservative Balanced	$	62,958,425	$	9,723,502		—	(b)		—		—		—		—
Diversified Bond		616,340		—	$	13,322,000	(c)		—		—	$	13,322,000		—
Diversified Conservative Growth		5,196,232		—		16,492,000	(d)		—	$	4,327,000		12,165,000		—
Equity		277,872		—		881,767,000			—		150,352,000		525,994,000	$	205,421,000
Flexible Managed		52,897,055		—		395,441,000	(e)		—		133,937,000		261,504,000		—
Global Portfolio		6,503,370		—		270,393,000			—		119,545,000		145,175,000		5,673,000
Government Income		6,991,743		9,522		—			—		—		—		—
High Yield Bond		40,106		—		285,339,000	(f)		—		—		—		—
Jennison		10,258		—		1,175,421,000			—		546,470,000		508,642,000		120,309,000
Jennison 20/20 Focus		61,682		—		14,961,000			—		6,075,000		7,511,000		1,375,000
Natural Resources		21,498,787		16,898,833		—			—		—		—		—
Small Capitalization Stock		133,462		2,375,136		—			—		—		—		—
SP Aggressive Growth Asset Allocation		47,387		—		336,000			—		37,000		241,000		58,000
SP AIM Aggressive Growth		—		—		2,653,000	(g)		—		994,000		1,659,000		—
SP AIM Core Equity		121,766		—		2,231,000	(h)	$	39,000		1,022,000		1,166,000		4,000
SP Alliance Large Cap Growth		—		—		12,510,000			1,000		1,518,000		7,122,000		3,869,000
SP Alliance Technology		—		—		4,393,000			36,000		1,065,000		2,904,000		388,000
SP Balanced Asset Allocation		4,764,898		418,285		—	(i)		—		—		—		—
SP Conservative Asset Allocation		5,505,641		312,063		—			—		—		—		—
SP Davis Value		1,941,811		—		5,776,000			1,000		498,000		4,991,000		286,000
SP Deutsche International Equity		662,879		—		6,052,000			195,000		2,230,000		2,631,000		996,000
SP Growth Asset Allocation		1,930,590		—		454,000			—		—		384,000		70,000
SP INVESCO Small Company Growth		—		—		3,036,000	(j)		—		506,000		2,530,000		—
SP Jennison International Growth		268,170		—		9,852,000	(k)		—		3,064,000		6,788,000		—
SP Large Cap Value		674,049		—		2,709,000			—		369,000		1,898,000		442,000
SP MFS Capital Opportunities		43,843		—		3,329,000	(l)		—		753,000		2,576,000		—
SP Mid-Cap Growth		—		—		10,632,000	(m)		—		—		10,632,000		—
SP PIMCO High Yield		2,151,259		745,337		—	(n)		—		—		—		—
SP PIMCO Total Return		11,134,909		10,956,735		—			—		—		—		—
SP Prudential U.S. Emerging Growth		—		56,653		—	(o)		—		—		—		—
SP Small/Mid-Cap Value Portfolio		553,326		93,547		—	(p)		—		—		—		—
SP Strategic Partners Focused Growth		—		—		4,323,000			185,000		1,613,000		2,207,000		318,000
Stock Index		8,314,231		43,386,225		—			—		—		—		—
Value Portfolio		—		—		212,964,000			—		—		168,729,000		44,235,000
Zero Coupon Bond 2005		—		1,497,422		—			—		—		—		—

(a)

Accordingly, no capital gain distribution is expected to be paid to shareholders until net gains have been realized in excess of such carryforwards.

(b)

Approximately $79,811,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(c)

Approximately $33,029,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(d)

Approximately $968,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(e)

Approximately $37,325,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

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(f)

Approximately $43,467,000 expiring in 2007, $59,264,000 expiring in 2008, $80,595,000 expiring in 2009 and $102,013,000 expiring in 2010. During the fiscal year ended December 31, 2003, approximately $1,497,000 of the capital loss carryforward expired unused. Approximately $1,345,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(g)

Approximately $449,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(h)

Approximately $1,711,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(i)

Approximately $71,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(j)

Approximately $1,369,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(k)

Approximately $853,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(l)

Approximately $395,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(m)

Approximately $862,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(n)

Approximately $2,840,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(o)

Approximately $15,020,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

(p)

Approximately $4,685,000 of its capital loss carryforward was used to offset net taxable gains realized in the fiscal year ended December 31, 2003.

As of December 31, 2003, the Money Market Portfolio had no distributable earnings.

The difference between book and tax basis is primarily cost basis adjustments and post-October losses (the Portfolios have elected to treat losses incurred in the period November 1, 2003 through December 31, 2003 as having been incurred in the following fiscal year) which are presented below:


	Approximate Post October Losses
Portfolio	Currency		Capital
Diversified Bond Portfolio	$	1,167,000		—
Diversified Conservative Growth Portfolio		102,000		—
Government Income Portfolio		—	$	858,000
High Yield Bond Portfolio		—		3,075,000
Jennison 20/20 Focus Portfolio		—		28,000
Natural Resources Portfolio		24,000		—
Small Capitalization Stock Portfolio		—		12,000
SP Alliance Large Cap Growth Portfolio		—		277,000
SP Davis Value Portfolio		44,000		858,000
SP Deutsche International Equity Portfolio		12,000		—
SP Mid-Cap Growth Portfolio		—		21,000
SP PIMCO Total Return Portfolio		3,850,000		—

The United States federal income tax basis and unrealized appreciation (depreciation) of the Series Fund’s investments and the total net unrealized appreciation (depreciation) as of December 31, 2003 were as follows:


Portfolio	Tax Basis		Appreciation		Depreciation		Net Unrealized of Investments			Other Cost Basis Adjustment		Total Net Unrealized
Conservative Balanced Portfolio	$	3,824,743,187	$	279,390,590	$	295,551,850	$	(16,161,260	)		—	$	(16,161,260	)
Diversified Bond Portfolio		1,914,476,617		46,681,300		3,940,063		42,741,237		$	4,246		42,745,483
Diversified Conservative Growth Portfolio		154,617,850		16,848,502		1,983,329		14,865,173			133,405		14,998,578
Equity Portfolio		3,965,363,346		582,171,907		100,990,219		481,181,688			5,233		481,186,921
Flexible Managed Portfolio		4,398,552,238		341,428,722		79,411,985		262,016,737			—		262,016,737
Global Portfolio		691,256,264		103,635,713		11,693,499		91,942,214			224,734		92,166,948

C23


Portfolio	Tax Basis		Appreciation		Depreciation		Net Unrealized of Investments		Other Cost Basis Adjustment			Total Net Unrealized
Government Income Portfolio	$	605,087,223	$	10,066,918	$	2,359,131	$	7,707,787	$	(27,906	)	$	7,679,881
High Yield Bond Portfolio		1,761,722,645		117,443,970		62,106,099		55,337,871		—			55,337,871
Jennison Portfolio		2,126,205,723		264,401,932		33,967,482		230,434,450		8,375			230,442,825
Jennison 20/20 Focus Portfolio		90,112,400		15,050,718		810,385		14,240,333		—			14,240,333
Natural Resources Portfolio		467,781,832		171,609,487		8,475,071		163,134,416		2,908			163,137,324
Small Capitalization Stock Portfolio		634,937,651		169,794,276		60,039,813		109,754,463		—			109,754,463
SP Aggressive Growth Asset Allocation Portfolio		54,523,466		6,634,614		566,098		6,068,516		—			6,068,516
SP AIM Aggressive Growth Portfolio		20,479,197		3,216,478		59,155		3,157,323		—			3,157,323
SP AIM Core Equity Portfolio		21,657,537		2,363,968		368,405		1,995,563		—			1,995,563
SP Alliance Large Cap Growth Portfolio		135,762,706		14,555,059		969,554		13,585,505		—			13,585,505
SP Alliance Technology Portfolio		18,600,856		2,124,958		288,034		1,836,924		463			1,837,387
SP Balanced Asset Allocation Portfolio		413,450,433		36,498,007		—		36,498,007		—			36,498,007
SP Conservative Asset Allocation Portfolio		264,557,316		16,664,800		—		16,664,800		—			16,664,800
SP Davis Value Portfolio		340,578,982		54,691,753		3,169,089		51,522,664		—			51,522,664
SP Deutsche International Equity Portfolio		100,654,492		18,300,131		395,126		17,905,005		12,407			17,917,412
SP Growth Asset Allocation Portfolio		295,831,164		30,888,544		—		30,888,544		—			30,888,544
SP INVESCO Small Company Growth Portfolio		34,267,163		4,410,386		460,166		3,950,220		—			3,950,220
SP Jennison International Growth Portfolio		192,569,126		35,792,930		254,361		35,538,569		303,496			35,842,065
SP Large Cap Value Portfolio		64,891,449		9,250,474		934,711		8,315,763		—			8,315,763
SP MFS Capital Opportunities Portfolio		18,689,274		1,935,501		232,130		1,703,371		—			1,703,371
SP Mid-Cap Growth Portfolio		50,378,753		11,242,550		1,388,577		9,853,973		—			9,853,973
SP PIMCO High Yield Portfolio		234,590,557		13,667,292		715,949		12,951,343		—			12,951,343
SP PIMCO Total Return Portfolio		829,308,738		11,767,189		4,917,869		6,849,320		777,139			7,626,459
SP Prudential U.S. Emerging Growth Portfolio		154,722,196		16,750,714		2,136,041		14,614,673		123			14,614,796
SP Small/Mid-Cap Value Portfolio		216,274,508		38,246,671		2,553,698		35,692,973		—			35,692,973
SP Strategic Partners Focused Growth Portfolio		31,928,607		4,252,537		78,867		4,173,670		—			4,173,670

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Portfolio	Tax Basis	Appreciation	Depreciation	Net Unrealized of Investments	Other Cost Basis Adjustment	Total Net Unrealized
Stock Index Portfolio	2,971,225,278	968,804,913	318,484,860	650,320,053	—	650,320,053
Value Portfolio	1,567,395,558	210,105,843	13,713,608	196,392,235	—	196,392,235
Zero Coupon Bond 2005 Portfolio	60,183,532	3,768,262	—	3,768,262	—	3,768,262

The differences between book basis and tax basis of investments are primarily attributable to deferred losses on wash sales and mark to market on passive foreign investments companies. The other cost basis adjustments are primarily attributable to appreciation (depreciation) of foreign currency and mark to market of receivables and payables.

Note 7:

Capital

The Series Fund offers Class I and Class II shares. Neither Class I nor Class II shares of a Portfolio are subject to any sales charge or redemption charge and are sold at the net asset value of the Portfolio. Class I shares are sold only to certain separate accounts of Prudential to fund benefits under certain variable life insurance and variable annuity contracts (“contracts”). Class II shares are sold only to separate accounts of non-Prudential insurance companies as investment options under certain contracts. The separate accounts invest in shares of the Series Fund through subaccounts that correspond to the Portfolios. The separate accounts will redeem shares of the Series Fund to the extent necessary to provide benefits under the contracts or for such other purposes as may be consistent with the contracts. As of December 31, 2003, the Equity, Jennison, Jennison 20/20 Focus, SP Jennison International Growth, SP Prudential U.S. Emerging Growth, SP Strategic Partners Focused Growth and Value Portfolios have Class II shares outstanding.

Transactions in shares of common stock of the Equity, Jennison, Jennison 20/20 Focus, SP Jennison International Growth, SP Prudential U.S. Emerging Growth, SP Strategic Partners Focused Growth and Value Portfolios were as follows:



Equity Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	5,720,088		$	100,538,375
Capital stock issued in reinvestment of dividends and distributions	1,744,798			34,653,868
Capital stock repurchased	(20,096,637	)		(343,330,924	)

Net increase (decrease) in shares outstanding	(12,631,751	)	$	(208,138,681	)

Year ended December 31, 2002:
Capital stock sold	9,066,050		$	172,609,056
Capital stock issued in reinvestment of dividends and distributions	2,132,831			34,102,714
Capital stock repurchased	(28,676,676	)		(508,658,672	)

Net increase (decrease) in shares outstanding	(17,477,795	)	$	(301,946,902	)


Class II
Year ended December 31, 2003:
Capital stock sold	28,957		$	525,059
Capital stock issued in reinvestment of dividends and distributions	175			3,532
Capital stock repurchased	(14,266	)		(253,850	)

Net increase (decrease) in shares outstanding	14,866		$	274,741

Year ended December 31, 2002:
Capital stock sold	7,765		$	139,490
Capital stock issued in reinvestment of dividends and distributions	151			2,409
Capital stock repurchased	(34,521	)		(675,949	)

Net increase (decrease) in shares outstanding	(26,605	)	$	(534,050	)

C25



Jennison Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	14,265,473		$	207,272,223
Capital stock issued in reinvestment of dividends and distributions	248,870			4,049,114
Capital stock repurchased	(16,408,586	)		(229,354,175	)

Net increase (decrease) in shares outstanding	(1,894,243	)	$	(18,032,838	)

Year ended December 31, 2002:
Capital stock sold	18,502,162		$	296,376,121
Capital stock issued in reinvestment of dividends and distributions	275,676			3,653,967
Capital stock repurchased	(28,004,862	)		(430,726,656	)

Net increase (decrease) in shares outstanding	(9,227,024	)	$	(130,696,568	)


Class II
Year ended December 31, 2003:
Capital stock sold	1,819,063		$	25,649,467
Capital stock repurchased	(1,094,135	)		(15,195,715	)

Net increase (decrease) in shares outstanding	724,928		$	10,453,752

Year ended December 31, 2002:
Capital stock sold	14,430,223		$	231,045,480
Capital stock repurchased	(13,872,483	)		(222,104,589	)

Net increase (decrease) in shares outstanding	557,740		$	8,940,891



Jennison 20/20 Focus Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	196,317		$	1,802,208
Capital stock issued in reinvestment of dividends and distributions	15,798			127,802
Capital stock repurchased	(1,064,818	)		(9,437,398	)

Net increase (decrease) in shares outstanding	(852,703	)	$	(7,507,388	)

Year ended December 31, 2002:
Capital stock sold	477,599		$	4,746,289
Capital stock issued in reinvestment of dividends and distributions	1,519			15,466
Capital stock repurchased	(1,814,255	)		(16,565,044	)

Net increase (decrease) in shares outstanding	(1,335,137	)	$	(11,803,289	)


Class II
Year ended December 31, 2003:
Capital stock sold	2,922,818		$	27,443,579
Capital stock repurchased	(96,920	)		(869,041	)

Net increase (decrease) in shares outstanding	2,825,898		$	26,574,538

Year ended December 31, 2002:
Capital stock sold	784,480		$	6,950,275
Capital stock repurchased	(70,611	)		(590,963	)

Net increase (decrease) in shares outstanding	713,869		$	6,359,312

C26



SP Jennison International Growth Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	26,290,046		$	124,525,584
Capital stock repurchased	(16,620,819	)		(76,743,054	)

Net increase (decrease) in shares outstanding	9,669,227		$	47,782,530

Year ended December 31, 2002:
Capital stock sold	37,549,642		$	176,068,778
Capital stock repurchased	(32,932,112	)		(154,654,000	)

Net increase (decrease) in shares outstanding	4,617,530		$	21,414,778


Class II
Year ended December 31, 2003:
Capital stock sold	41,416,312		$	198,774,594
Capital stock repurchased	(27,545,237	)		(129,018,065	)

Net increase (decrease) in shares outstanding	13,871,075		$	69,756,529

Year ended December 31, 2002:
Capital stock sold	60,413,048		$	283,561,226
Capital stock repurchased	(57,515,532	)		(271,312,534	)

Net increase (decrease) in shares outstanding	2,897,516		$	12,248,692



SP Prudential U.S. Emerging Growth Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	19,306,919		$	114,888,959
Capital stock repurchased	(4,636,097	)		(26,226,115	)

Net increase (decrease) in shares outstanding	14,670,822		$	88,662,844

Year ended December 31, 2002:
Capital stock sold	8,238,632		$	43,716,806
Capital stock repurchased	(1,860,332	)		(9,356,549	)

Net increase (decrease) in shares outstanding	6,378,300		$	34,360,257


Class II
Year ended December 31, 2003:
Capital stock sold	3,868		$	22,395
Capital stock repurchased	(2,616	)		(15,125	)

Net increase (decrease) in shares outstanding	1,252		$	7,270

Year ended December 31, 2002:
Capital stock sold	35,521		$	223,346
Capital stock repurchased	(11,448	)		(55,387	)

Net increase (decrease) in shares outstanding	24,073		$	167,959

C27



SP Strategic Partners Focused Growth Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	1,986,610		$	11,273,424
Capital stock repurchased	(712,078	)		(4,051,614	)

Net increase (decrease) in shares outstanding	1,274,532		$	7,221,810

Year ended December 31, 2002:
Capital stock sold	1,856,394		$	10,438,074
Capital stock repurchased	(855,168	)		(4,534,983	)

Net increase (decrease) in shares outstanding	1,001,226		$	5,903,091


Class II
Year ended December 31, 2003:
Capital stock sold	1,627,291		$	8,817,800
Capital stock repurchased	(670,757	)		(3,585,555	)

Net increase (decrease) in shares outstanding	956,534		$	5,232,245

Year ended December 31, 2002:
Capital stock sold	1,308,807		$	7,157,118
Capital stock repurchased	(285,104	)		(1,602,328	)

Net increase (decrease) in shares outstanding	1,023,703		$	5,554,790



Value Portfolio:
Class I	Shares		Amount
Year ended December 31, 2003:
Capital stock sold	5,673,401		$	84,460,988
Capital stock issued in reinvestment of dividends and distributions	1,194,010			20,034,413
Capital stock repurchased	(13,710,924	)		(200,548,356	)

Net increase (decrease) in shares outstanding	(6,843,513	)	$	(96,052,955	)

Year ended December 31, 2002:
Capital stock sold	11,903,821		$	189,262,633
Capital stock issued in reinvestment of dividends and distributions	1,470,760			20,321,246
Capital stock repurchased	(23,222,677	)		(358,924,662	)

Net increase (decrease) in shares outstanding	(9,848,096	)	$	(149,340,783	)


Class II
Year ended December 31, 2003:
Capital stock sold	77,963		$	1,111,568
Capital stock issued in reinvestment of dividends and distributions	1,571			26,692
Capital stock repurchased	(26,419	)		(385,718	)

Net increase (decrease) in shares outstanding	53,115		$	752,542

Year ended December 31, 2002:
Capital stock sold	89,982		$	1,403,789
Capital stock issued in reinvestment of dividends and distributions	1,430			19,706
Capital stock repurchased	(40,697	)		(573,109	)

Net increase (decrease) in shares outstanding	50,715		$	850,386

Note 8: Borrowings

The Series Fund (excluding the Money Market Portfolio), along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with a group of banks. The SCA provides for a commitment of $800 million and allows the Funds to increase the commitment to $1 billion, if necessary. Interest on any borrowings will be at market rates. The Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA. The commitment fee is accrued daily and paid quarterly and is allocated to

C28

the Funds pro-rata, based on net assets. The expiration date of the SCA was May 2, 2003. On May 2, 2003, the SCA was renewed under the same terms and conditions (‘May 2003 renewal’). The expiration date of the May 2003 renewal is April 30, 2004.

The following Portfolios utilized the line of credit during the year ended December 31, 2003. The average balance outstanding and the weighted average interest rate is for the number of days the Portfolio had an outstanding balance.


Portfolio	Average Balance Outstanding		Number of Days Outstanding	Weighted Average Interest Rates
Equity Portfolio	$	1,074,500	17	1.75	%
Global Portfolio		561,950	4	1.53
Jennison Portfolio		681,692	13	1.68
Jennison 20/20 Portfolio		180,300	6	1.76
Small Capitalization Stock Portfolio		1,101,500	8	1.77
SP Alliance Large Cap Growth Portfolio		140,900	1	1.81
SP Jennison Int’l Growth Portfolio		820,933	3	1.51
SP Large Cap Value Portfolio		303,000	1	1.81
SP Strategic Partners Focused Growth Portfolio		120,667	3	1.54

Note 9: Subsequent Subadvisor Changes (Unaudited)

On January 20, 2004, the following subadviser changes were effective:

The SP Alliance Technology Portfolio will now be managed by The Dreyfus Corporation, a wholly owned subsidiary of the Mellon Financial Corporation. The Portfolio’s new name will be SP Technology Portfolio. This was approved by the Series Fund’s Board of Directors on January 8, 2004.

The SP Large Cap Value Portfolio will now be managed by both JPMorgan Fleming Asset Management and Hotchkis & Wiley Capital Management, with each subadviser sharing responsibility for a segment of the Portfolio. The new subadvisers replaced Fidelity Management & Research Company (“Fidelity”). The name of the Portfolio will remain unchanged. This was approved by the Series Fund’s Board of Directors on November 19, 2003.

The SP Small/Mid Cap Value Portfolio is now managed by Goldman Sachs Asset Management, replacing Fidelity. The Portfolio’s new name will be SP Goldman Sachs Small Cap Portfolio. This was approved by the Series Fund’s Board of Directors on November 19, 2003.

C29

Financial Highlights


	Conservative Balanced Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.43		$	13.69		$	14.63		$	15.36		$	15.08

Income From Investment Operations:
Net investment income		0.28			0.34			0.44			0.59			0.62
Net realized and unrealized gains (losses) on investments		1.99			(1.57	)		(0.75	)		(0.65	)		0.37

Total from investment operations		2.27			(1.23	)		(0.31	)		(0.06	)		0.99

Less Distributions:
Dividends from net investment income		(0.36	)		—			(0.48	)		(0.56	)		(0.62	)
Distributions from net realized gains		—			(0.03	)		(0.15	)		(0.11	)		(0.06	)
Distributions in excess of net realized gains		—			—			—			—			(0.03	)

Total distributions		(0.36	)		(0.03	)		(0.63	)		(0.67	)		(0.71	)

Net Asset Value, end of year	$	14.34		$	12.43		$	13.69		$	14.63		$	15.36

Total Investment Return(a)		18.77	%		(8.98	)%		(2.02	)%		(0.48	)%		6.69	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	2,895.0		$	2,660.3		$	3,259.7		$	3,714.3		$	4,387.1
Ratios to average net assets:
Expenses		0.58	%		0.58	%		0.58	%		0.60	%		0.57	%
Net investment income		2.02	%		2.49	%		3.05	%		3.79	%		4.02	%
Portfolio turnover rate		248	%		260	%		239	%		85	%		109	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Diversified Bond Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	10.82		$	11.36		$	11.28		$	10.95		$	11.06

Income From Investment Operations:
Net investment income		0.45			0.57			0.67			0.77			0.67
Net realized and unrealized gains (losses) on investments		0.35			0.17			0.12			0.26			(0.75	)

Total from investment operations		0.80			0.74			0.79			1.03			(0.08	)

Less Distributions:
Dividends from net investment income		(0.45	)		(1.27	)		(0.71	)		(0.70	)		—
Distributions from net realized gains		—			—			—			—	(b)		(0.03	)
Tax return of capital distributions		—			(0.01	)		—			—			—

Total distributions		(0.45	)		(1.28	)		(0.71	)		(0.70	)		(0.03	)

Net Asset Value, end of year	$	11.17		$	10.82		$	11.36		$	11.28		$	10.95

Total Investment Return(a)		7.49	%		7.07	%		6.98	%		9.72	%		(0.74	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	1,418.0		$	1,370.3		$	1,400.7		$	1,269.8		$	1,253.8
Ratios to average net assets:
Expenses		0.44	%		0.44	%		0.44	%		0.45	%		0.43	%
Net investment income		4.02	%		5.25	%		6.35	%		6.83	%		6.25	%
Portfolio turnover rate		706	%		595	%		257	%		139	%		171	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Equity Portfolio
	Class I
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	15.75		$	20.49		$	24.50		$	28.90		$	29.64

Income From Investment Operations:
Net investment income		0.17			0.17			0.18			0.51			0.54
Net realized and unrealized gains (losses) on investments		4.81			(4.75	)		(2.83	)		0.26			3.02

Total from investment operations		4.98			(4.58	)		(2.65	)		0.77			3.56

Less Distributions:
Dividends from net investment income		(0.18	)		(0.16	)		(0.18	)		(0.51	)		(0.53	)
Distributions in excess of net investment income		—			—			—			(0.02	)		—
Distributions from net realized gains		—			—			(1.18	)		(4.64	)		(3.77	)

Total distributions		(0.18	)		(0.16	)		(1.36	)		(5.17	)		(4.30	)

Net Asset Value, end of year	$	20.55		$	15.75		$	20.49		$	24.50		$	28.90

Total Investment Return(a)		31.65	%		(22.34	)%		(11.18	)%		3.28	%		12.49	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	4,012.3		$	3,273.6		$	4,615.9		$	5,652.7		$	6,235.0
Ratios to average net assets:
Expenses		0.49	%		0.48	%		0.49	%		0.49	%		0.47	%
Net investment income		0.96	%		0.88	%		0.84	%		1.75	%		1.72	%
Portfolio turnover rate		54	%		54	%		153	%		78	%		9	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Equity Portfolio
	Class II
	Year Ended December 31,												May 3, 1999(c) through December 31, 1999
	2003			2002			2001			2000			May 3, 1999(c) through December 31, 1999
Per Share Operating Performance:
Net Asset Value, beginning of period	$	15.76		$	20.49		$	24.51		$	28.92		$	32.79

Income From Investment Operations:
Net investment income		0.08			0.09			0.09			0.39			0.28
Net realized and unrealized gains (losses) on investments		4.83			(4.72	)		(2.83	)		0.26			(0.60	)

Total from investment operations		4.91			(4.63	)		(2.74	)		0.65			(0.32	)

Less distributions:
Dividends from net investment income		(0.09	)		(0.10	)		(0.10	)		(0.40	)		(0.34	)
Distributions in excess of net investment income		—			—			—			(0.02	)		—
Distributions from net realized gains		—			—			(1.18	)		(4.64	)		(3.21	)

Total distributions		(0.09	)		(0.10	)		(1.28	)		(5.06	)		(3.55	)

Net Asset Value, end of period	$	20.58		$	15.76		$	20.49		$	24.51		$	28.92

Total Investment Return(a)		31.11	%		(22.62	)%		(11.57	)%		2.83	%		(0.68	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	0.8		$	0.4		$	1.1		$	1.8		$	0.3
Ratios to average net assets:
Expenses		0.89	%		0.88	%		0.89	%		0.91	%		0.87	%(b)
Net investment income		0.54	%		0.46	%		0.45	%		1.26	%		1.33	%(b)
Portfolio turnover rate		54	%		54	%		153	%		78	%		9	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(b)	Annualized.

(c)	Commencement of offering of Class II shares.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Flexible Managed Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.55		$	14.79		$	16.53		$	17.64		$	16.56

Income From Investment Operations:
Net investment income		0.22			0.27			0.42			0.61			0.58
Net realized and unrealized gains (losses) on investments		2.70			(2.10	)		(1.35	)		(0.86	)		0.69

Total from investment operations		2.92			(1.83	)		(0.93	)		(0.25	)		1.27

Less Distributions:
Dividends from net investment income		(0.28	)		(0.41	)		(0.58	)		(0.62	)		—
Distributions from net realized gains		—			—			(0.23	)		(0.24	)		(0.19	)

Total distributions		(0.28	)		(0.41	)		(0.81	)		(0.86	)		(0.19	)

Net Asset Value, end of year	$	15.19		$	12.55		$	14.79		$	16.53		$	17.64

Total Investment Return(a)		23.76	%		(12.74	)%		(5.68	)%		(1.44	)%		7.78	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	3,693.6		$	3,181.0		$	3,896.6		$	4,463.8		$	5,125.3
Ratios to average net assets:
Expenses		0.62	%		0.63	%		0.64	%		0.64	%		0.62	%
Net investment income		1.55	%		1.92	%		2.61	%		3.22	%		3.20	%
Portfolio turnover rate		204	%		238	%		236	%		132	%		76	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Global Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	11.35		$	15.29		$	23.61		$	30.98		$	21.16

Income From Investment Operations:
Net investment income		0.10			0.07			0.09			0.07			0.06
Net realized and unrealized gains (losses) on investments		3.74			(3.87	)		(3.58	)		(5.30	)		10.04

Total from investment operations		3.84			(3.80	)		(3.49	)		(5.23	)		10.10

Less Distributions:
Dividends from net investment income		(0.05	)		(0.14	)		(0.06	)		(0.07	)		—
Distributions in excess of net investment income		—			—			—			(0.13	)		(0.10	)
Distributions from net realized gains		—			—			(4.77	)		(1.94	)		(0.18	)

Total distributions		(0.05	)		(0.14	)		(4.83	)		(2.14	)		(0.28	)

Net Asset Value, end of year	$	15.14		$	11.35		$	15.29		$	23.61		$	30.98

Total Investment Return(a)		34.07	%		(25.14	)%		(17.64	)%		(17.68	)%		48.27	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	665.6		$	514.9		$	885.0		$	1,182.1		$	1,298.3
Ratios to average net assets:
Expenses		0.87	%		0.82	%		0.84	%		0.85	%		0.84	%
Net investment income		0.78	%		0.47	%		0.58	%		0.25	%		0.21	%
Portfolio turnover rate		88	%		75	%		67	%		95	%		76	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Government Income Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.50		$	12.26		$	12.02		$	11.55		$	11.87

Income From Investment Operations:
Net investment income		0.46			0.38			0.65			0.89			0.76
Net realized and unrealized gain (losses) on investment		(0.15	)		1.00			0.31			0.52			(1.08	)

Total from investment operations		0.31			1.38			0.96			1.41			(0.32	)

Less Distributions:
Dividends from net investment income		(0.46	)		(1.06	)		(0.72	)		(0.91	)		—
Distributions from net realized gains		(0.43	)		(0.08	)		—			(0.03	)		—

Total distributions		(0.89	)		(1.14	)		(0.72	)		(0.94	)		—

Net Asset Value, end of year	$	11.92		$	12.50		$	12.26		$	12.02		$	11.55

Total Investment Return(a)		2.46	%		12.05	%		8.06	%		12.78	%		(2.70	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	461.5		$	484.3		$	311.0		$	291.5		$	335.5
Ratios to average net assets:
Expenses		0.46	%		0.44	%		0.47	%		0.47	%		0.44	%
Net investment income		3.76	%		4.29	%		5.53	%		6.03	%		5.72	%
Portfolio turnover rate		695	%		508	%		361	%		184	%		106	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	High Yield Bond Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	4.59		$	5.40		$	6.14		$	7.52		$	7.21

Income From Investment Operations:
Net investment income		0.41			0.29			0.58			0.74			0.79
Net realized and unrealized gains (losses) on investments		0.71			(0.21	)		(0.62	)		(1.30	)		(0.46	)

Total from investment operations		1.12			0.08			(0.04	)		(0.56	)		0.33

Less Distributions:
Dividends from net investment income		(0.42	)		(0.89	)		(0.70	)		(0.82	)		(0.02	)

Net Asset Value, end of year	$	5.29		$	4.59		$	5.40		$	6.14		$	7.52

Total Investment Return(a)		25.04	%		1.50	%		(0.44	)%		(7.91	)%		4.61	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,466.7		$	1,128.6		$	655.8		$	661.3		$	802.2
Ratios to average net assets:
Expenses		0.60	%		0.58	%		0.60	%		0.60	%		0.60	%
Net investment income		8.11	%		9.36	%		10.93	%		10.47	%		10.48	%
Portfolio turnover rate		93	%		77	%		84	%		76	%		58	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Jennison Portfolio
	Class I
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.79		$	18.57		$	22.97		$	32.39		$	23.91

Income From Investment Operations:
Net investment income		0.04			0.03			0.04			0.01			0.05
Net realized and unrealized gains (losses) on investments		3.83			(5.78	)		(4.22	)		(5.61	)		9.88

Total from investment operations		3.87			(5.75	)		(4.18	)		(5.60	)		9.93

Less Distributions:
Dividends from net investment income		(0.04	)		(0.03	)		(0.03	)		—	(b)		(0.05	)
Distributions from net realized gains		—			—			(0.19	)		(3.82	)		(1.40	)

Total distributions		(0.04	)		(0.03	)		(0.22	)		(3.82	)		(1.45	)

Net Asset Value, end of year	$	16.62		$	12.79		$	18.57		$	22.97		$	32.39

Total Investment Return(a)		30.25	%		(30.95	)%		(18.25	)%		(17.38	)%		41.76	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,772.4		$	1,388.8		$	2,186.9		$	2,892.7		$	2,770.7
Ratios to average net assets:
Expenses		0.64	%		0.61	%		0.64	%		0.64	%		0.63	%
Net investment income		0.28	%		0.21	%		0.18	%		0.02	%		0.17	%
Portfolio turnover rate		69	%		74	%		86	%		89	%		58	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Less than $0.005 per share.


	Jennison Portfolio
	Class II
	Year Ended December 31,									February 10, 2000(d) through December 31, 2000
	2003			2002			2001			February 10, 2000(d) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	12.70		$	18.45		$	22.88		$	34.25

Income From Investment Operations:
Net investment income (loss)		(0.01	)		(0.02	)		0.01			(0.03	)
Net realized and unrealized gains (losses) on investments		3.77			(5.73	)		(4.25	)		(7.54	)

Total from investment operations		3.76			(5.75	)		(4.24	)		(7.57	)

Less Distributions:
Dividends from net investment income		—			—			—	(c)		—	(c)
Distributions from net realized gains		—			—			(0.19	)		(3.80	)

Total distributions		—			—			(0.19	)		(3.80	)

Net Asset Value, end of period	$	16.46		$	12.70		$	18.45		$	22.88

Total Investment Return(a)		29.61	%		(31.17	)%		(18.60	)%		(22.19	)%
Ratios/Supplement Data:
Net assets, end of period (in millions)	$	74.3		$	48.1		$	59.6		$	13.3
Ratios to average net assets:
Expenses		1.04	%		1.01	%		1.04	%		1.04	%(b)
Net investment income (loss)		(0.13	)%		(0.19	)%		(0.19	)%		(0.39	)%(b)
Portfolio turnover rate		69	%		74	%		86	%		89	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods less than one full year are not annualized.

(b)	Annualized.

(c)	Less than $0.005 per share.

(d)	Commencement of offering of Class II Shares.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Money Market Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	10.00		$	10.00		$	10.00		$	10.00		$	10.00

Income From Investment Operations:
Net investment income and realized and unrealized gains		0.08			0.15			0.41			0.60			0.49
Dividend and distributions		(0.08	)		(0.15	)		(0.41	)		(0.60	)		(0.49	)

Net Asset Value, end of year	$	10.00		$	10.00		$	10.00		$	10.00		$	10.00

Total Investment Return(a)		0.84	%		1.52	%		4.22	%		6.20	%		4.97	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	933.7		$	1,366.6		$	1,501.9		$	1,238.2		$	1,335.5
Ratios to average net assets:
Expenses		0.44	%		0.43	%		0.43	%		0.44	%		0.42	%
Net investment income		0.84	%		1.52	%		3.86	%		6.03	%		4.90	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Natural Resources Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	22.35		$	19.11		$	23.59		$	17.38		$	11.98

Income From Investment Operations:
Net investment income		0.25			0.09			0.43			0.13			0.10
Net realized and unrealized gains (losses) on investments		7.38			3.52			(2.89	)		6.36			5.40

Total from investment operations		7.63			3.61			(2.46	)		6.49			5.50

Less Distributions:
Dividends from net investment income		(0.98	)		(0.12	)		(0.55	)		(0.16	)		(0.10	)
Distributions in excess of net investment income		—			—			—			(0.09	)		—
Distributions from net realized gains		(1.51	)		(0.25	)		(1.47	)		(0.03	)		—
Tax return of capital distributions		—			—			—			—			—

Total distributions		(2.49	)		(0.37	)		(2.02	)		(0.28	)		(0.10	)

Net Asset Value, end of year	$	27.49		$	22.35		$	19.11		$	23.59		$	17.38

Total Investment Return(a)		39.00	%		18.92	%		(10.08	)%		37.66	%		45.99	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	498.7		$	379.2		$	336.1		$	393.2		$	289.5
Ratios to average net assets:
Expenses		0.51	%		0.50	%		0.52	%		0.58	%		0.57	%
Net investment income		0.80	%		0.47	%		1.94	%		0.67	%		0.70	%
Portfolio turnover rate		24	%		37	%		23	%		30	%		26	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Small Capitalization Stock Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.91		$	15.48		$	17.11		$	16.25		$	14.71

Income From Investment Operations:
Net investment income		0.07			0.06			0.06			0.07			0.10
Net realized and unrealized gains (losses) on investments		4.82			(2.31	)		0.67			1.81			1.71

Total from investment operations		4.89			(2.25	)		0.73			1.88			1.81

Less Distributions:
Dividends from net investment income		(0.07	)		(0.13	)		(0.08	)		(0.08	)		—
Distributions from net realized gains		(0.09	)		(0.19	)		(2.28	)		(0.94	)		(0.27	)

Total distributions		(0.16	)		(0.32	)		(2.36	)		(1.02	)		(0.27	)

Net Asset Value, end of year	$	17.64		$	12.91		$	15.48		$	17.11		$	16.25

Total Investment Return(a)		38.27	%		(14.92	)%		5.53	%		12.81	%		12.68	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	619.9		$	467.4		$	611.1		$	568.3		$	437.5
Ratios to average net assets:
Expenses		0.48	%		0.46	%		0.48	%		0.48	%		0.45	%
Net investment income		0.47	%		0.40	%		0.52	%		0.59	%		0.70	%
Portfolio turnover rate		15	%		17	%		23	%		29	%		31	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	SP Aggressive Growth Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.90		$	7.58		$	9.33		$	10.00

Income From Investment Operations:
Net investment income		0.01			—	(e)		0.02			0.01
Net realized and unrealized gains (losses) on investments		1.92			(1.68	)		(1.69	)		(0.67	)

Total from investment operations		1.93			(1.68	)		(1.67	)		(0.66	)

Less Distributions:
Dividends from net investment income		—	(e)		—			(0.02	)		(0.01	)
Distributions from net realized gains		—			—			(0.06	)		—

Total distributions		—			—			(0.08	)		(0.01	)

Net Asset Value, end of period	$	7.83		$	5.90		$	7.58		$	9.33

Total Investment Return(b)		32.77	%		(22.16	)%		(17.92	)%		(6.65	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	60.6		$	15.1		$	7.5		$	2.1
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		0.16	%		0.06	%		0.39	%		0.36	%(c)
Portfolio turnover rate		22	%		26	%		62	%		6	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP AIM Aggressive Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.13		$	6.49		$	8.60		$	10.00

Income From Investment Operations:
Net investment loss		(0.03	)		(0.03	)		(0.04	)		(0.01	)
Net realized and unrealized gains (losses) on investments		1.39			(1.33	)		(2.07	)		(1.39	)

Total from investment operations		1.36			(1.36	)		(2.11	)		(1.40	)

Net Asset Value, end of period	$	6.49		$	5.13		$	6.49		$	8.60

Total Investment Return(b)		26.51	%		(20.96	)%		(24.53	)%		(14.00	)%
Ratios/Supplement Data:
Net assets, end of period (in millions)	$	22.4		$	9.3		$	5.7		$	3.9
Ratios to average net assets(d):
Expenses		1.07	%		1.07	%		1.07	%		1.07	%(c)
Net investment loss		(0.73	)%		(0.72	)%		(0.73	)%		(0.40	)%(c)
Portfolio turnover rate		85	%		73	%		87	%		16	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 2.02% and (1.68)%, respectively, for the year ended December 31, 2003, 2.81% and (2.46)%, respectively, for the year ended December 31, 2002, 3.45% and (3.11)%, respectively, for the year ended December 31, 2001 and 5.57% and (4.90)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.


	SP AIM Core Equity Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.52		$	6.51		$	8.41		$	10.00

Income From Investment Operations:
Net investment income (loss)		0.04			0.02			(—	)(f)		0.01
Net realized and unrealized gain (loss) on investments		1.26			(1.01	)		(1.90	)		(1.59	)

Total from investment operations		1.30			(0.99	)		(1.90	)		(1.58	)

Less Dividends:
Dividends from net investment income		(0.02	)		—			—			(0.01	)

Net Asset Value, end of period	$	6.80		$	5.52		$	6.51		$	8.41

Total Investment Return(b)		23.69	%		(15.21	)%		(22.68	)%		(15.74	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	22.8		$	13.9		$	10.2		$	4.3
Ratios to average net assets:(d)
Expenses		1.00	%		1.00	%		1.00	%		1.00	%(c)
Net investment income (loss)		0.70	%		0.45	%		(0.02	)%		0.26	%(c)
Portfolio turnover rate		37	%		116	%		65	%		15	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 1.72% and (0.02)%, respectively, for the year ended December 31, 2003, 1.79% and (0.34)%, respectively, for the year ended December 31, 2002, 2.55% and (1.57)%, respectively for the year ended December 31, 2001 and 5.53% and (4.27)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP Alliance Large Cap Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.03		$	7.31		$	8.55		$	10.00

Income From Investment Operations:
Net investment income (loss)		—	(f)		(0.01	)		(0.01	)		0.01
Net realized and unrealized gain (loss) on investments		1.20			(2.27	)		(1.23	)		(1.45	)

Total from investment operations		1.20			(2.28	)		(1.24	)		(1.44	)

Less Distributions:
Dividends from net investment income		—			—			—			(0.01	)
Tax return of capital distributions		—			—			—	(f)		—

Total distributions		—			—			—	(f)		(0.01	)

Net Asset Value, end of period	$	6.23		$	5.03		$	7.31		$	8.55

Total Investment Return(b)		23.86	%		(31.19	)%		(14.47	)%		(14.44	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	146.5		$	57.7		$	35.9		$	7.1
Ratios to average net assets:
Expenses		1.06	%		1.10	%(d)		1.10	%(d)		1.10	%(c)(d)
Net investment income (loss)		(0.11	)%		(0.27	)%(d)		(0.08	)%(d)		0.44	%(c)(d)
Portfolio turnover rate		38	%		34	%		47	%		10	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the expense and net investment loss ratios would have been 1.19% and (0.35)%, respectively, for the year ended December 31, 2002, 1.57% and (0.55)%, respectively, for the year ended December 31, 2001 and 4.26% and (2.72)%, respectively, for the year ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.


	SP Alliance Technology Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	3.35		$	5.71		$	7.62		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.03	)		(0.04	)		(0.03	)		0.01
Net realized and unrealized gains (losses) on investments		1.45			(2.32	)		(1.88	)		(2.38	)

Total from investment operations		1.42			(2.36	)		(1.91	)		(2.37	)

Less Distributions:
Dividends from net investment income		—			—			—			(0.01	)
Distributions in excess of net investment income		—			—			—			—	(c)

Total distributions		—			—			—			(0.01	)

Net Asset Value, end of period	$	4.77		$	3.35		$	5.71		$	7.62

Total Investment Return(b)		42.39	%		(41.33	)%		(25.07	)%		(23.71	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	20.0		$	6.5		$	7.7		$	6.1
Ratios to average net assets:(f)
Expenses		1.30	%		1.30	%		1.30	%		1.30	%(d)
Net investment income (loss)		(1.05	)%		(1.10	)%		(0.69	)%		0.37	%(d)
Portfolio turnover rate		88	%		81	%		47	%		23	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Less than $0.005 per share.

(d)	Annualized.

(e)	Not annualized.

(f)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 2.56% and (2.31)%, respectively, for the year ended December 31, 2003, 3.00% and (2.81)%, respectively, for the year ended December 31, 2002, 3.16% and (2.53)%, respectively, for the year ended December 31, 2001 and 4.66% and (2.99)%, respectively, for the period ended December 31, 2000.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP Balanced Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	7.96		$	9.02		$	9.80		$	10.00

Income from Investment Operations:
Net investment income		0.09			0.11			0.14			0.06
Net realized and unrealized gain (loss) on investments		1.71			(1.16	)		(0.73	)		(0.20	)

Total from investment operations		1.80			(1.05	)		(0.59	)		(0.14	)

Less Distributions:
Dividends from net investment income		(0.10	)		—			(0.14	)		(0.06	)
Distributions from net realized gains		—			(0.01	)		(0.05	)		—

Total distributions		(0.10	)		(0.01	)		(0.19	)		(0.06	)

Net asset value, end of period	$	9.66		$	7.96		$	9.02		$	9.80

Total Investment Return(b)		22.87	%		(11.67	)%		(5.99	)%		(1.42	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	449.8		$	147.3		$	66.1		$	3.7
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		1.83	%		1.96	%		3.26	%		4.89	%(c)
Portfolio turnover rate		12	%		22	%		35	%		4	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.


	SP Conservative Assset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.16		$	9.77		$	10.00		$	10.00

Income From Investment Operations:
Net investment income		0.16			0.16			0.21			0.08
Net realized and unrealized gains (losses) on investments		1.33			(0.73	)		(0.24	)		—	(c)

Total from investment operations		1.49			(0.57	)		(0.03	)		0.08

Less Dividends and Distributions:
Dividends from net investment income		(0.16	)		(0.03	)		(0.16	)		(0.08	)
Distributions from net realized gains		(.01	)		(0.01	)		(0.04	)		—	(c)

Total dividends and distributions		(.17	)		(0.04	)		(0.20	)		(0.08	)

Net Asset Value, end of period	$	10.48		$	9.16		$	9.77		$	10.00

Total Investment Return(b)		16.49	%		(5.88	)%		(0.23	)%		0.84	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	281.2		$	117.5		$	47.9		$	1.9
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(d)
Net investment income		2.60	%		2.79	%		4.76	%		8.07	%(d)
Portfolio turnover rate		22	%		25	%		29	%		4	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Less than $0.005 per share.

(d)	Annualized.

(e)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D10

Financial Highlights


	SP Davis Value Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	7.62		$	9.04		$	10.15		$	10.00

Income From Investment Operations:
Net investment income		0.05			0.05			0.05			0.02
Net realized and unrealized gains (losses) on investments and foreign currencies		2.18			(1.47	)		(1.11	)		0.15

Total from investment operations		2.23			(1.42	)		(1.06	)		0.17

Less Dividends and Distributions:
Dividends from net investment income		(0.05	)		—	(f)		(0.05	)		(0.02	)

Net Asset Value, end of period	$	9.80		$	7.62		$	9.04		$	10.15

Total Investment Return(b)		29.40	%		(15.70	)%		(10.46	)%		1.69	%
Ratios/Supplement Data:
Net assets, end of period (in millions)	$	391.2		$	165.0		$	94.4		$	12.8
Ratios to average net assets:
Expenses		0.82	%		0.83	%(e)		0.83	%(e)		0.83	%(c)(e)
Net investment income		0.80	%		0.82	%(e)		0.64	%(e)		1.48	%(c)(e)
Portfolio turnover rate		7	%		22	%		17	%		3	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and included reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income (loss) ratios would have been 0.87% and 0.78%, respectively, for the year ended December 31, 2002, 1.03% and 0.43%, respectively, for the year ended December 31, 2001, and 3.16% and (0.85)%, respectively, for the period ended December 31, 2000.

(f)	Less than $0.005 per share.


	SP Deutsche International Equity Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003(f)			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	6.08		$	7.35		$	9.44		$	10.00

Income From Investment Operations:
Net investment income		0.06			0.04			0.05			0.01
Net realized and unrealized losses on investments		1.58			(1.31	)		(2.09	)		(0.57	)

Total from investment operations		1.64			(1.27	)		(2.04	)		(0.56	)

Less Dividends:
Dividends from net investment income		(0.05	)		—			(0.05	)		—

Net Asset Value, end of period	$	7.67		$	6.08		$	7.35		$	9.44

Total Investment Return(b)		27.37	%		(17.17	)%		(22.07	)%		(5.20	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	119.9		$	46.4		$	24.7		$	7.8
Ratios to average net assets:(e)
Expenses		1.10	%		1.10	%		1.10	%		1.10	%(c)
Net investment income		0.89	%		0.55	%		0.61	%		0.55	%(c)
Portfolio turnover rate		87	%		141	%		155	%		51	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income (loss) ratios would have been 1.30% and 0.69%, respectively, for the year ended December 31, 2003, 1.77% and (0.12)%, respectively, for the year ended December 31, 2002, 3.27% and (1.56)%, respectively, for the year ended December 31, 2001, and 4.21% and (2.56)%, respectively, for the period ended December 31, 2000.

(f)	Calculated based upon weighted average shares outstanding during the year.

SEE NOTES TO FINANCIAL STATEMENTS.

D11

Financial Highlights


	SP Growth Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	6.84		$	8.27		$	9.52		$	10.00

Income from Investment Operations:
Net investment income		0.04			0.06			0.09			0.03
Net realized and unrealized losses on investments		1.88			(1.49	)		(1.21	)		(0.49	)

Total from investment operations		1.92			(1.43	)		(1.12	)		(0.46	)

Less Distributions:
Dividends from net investment income		(0.05	)		—			(0.08	)		(0.02	)
Distributions from net realized gains		—			—	(e)		(0.05	)		—

Total distributions		(0.05	)		—			(0.13	)		(0.02	)

Net Asset Value, end of period	$	8.71		$	6.84		$	8.27		$	9.52

Total Investment Return(b)		28.27	%		(17.26	)%		(11.77	)%		(4.56	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	326.7		$	96.4		$	46.8		$	3.9
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		1.10	%		1.12	%		1.71	%		2.95	%(c)
Portfolio turnover rate		18	%		24	%		43	%		39	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns of less than a full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)	Less than $0.005 per share.


	SP INVESCO Small Company Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.84		$	6.94		$	8.38		$	10.00

Income From Investment Operations:
Net investment loss		(0.03	)		(0.03	)		(0.02	)		—	(f)
Net realized and unrealized gains (losses) on investments		1.71			(2.07	)		(1.42	)		(1.62	)

Total from investment operations		1.68			(2.10	)		(1.44	)		(1.62	)

Net Asset Value, end of period	$	6.52		$	4.84		$	6.94		$	8.38

Total Investment Return(b)		34.71	%		(30.26	)%		(17.18	)%		(16.20	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	35.0		$	12.5		$	8.4		$	5.5
Ratios to average net assets:(d)
Expenses		1.15	%		1.15	%		1.15	%		1.15	%(c)
Net investment loss		(0.72	)%		(0.73	)%		(0.28	)%		(0.10	)%(c)
Portfolio turnover rate		122	%		109	%		83	%		29	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 1.78% and (1.35)%, respectively, for the year ended December 31, 2003, 2.30% and (1.89)%, respectively, for the year ended December 31, 2002, 2.84% and (1.97)%, respectively, for the year ended December 31, 2001 and 4.00% and (2.95)% respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

D12

Financial Highlights


	SP Jennison International Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001(f)			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.22		$	5.45		$	8.50		$	10.00

Income From Investment Operations:
Net investment income		0.01			0.01			0.02			0.01
Net realized and unrealized gains (losses) on investments		1.66			(1.24	)		(3.05	)		(1.51	)

Total from investment operations		1.67			(1.23	)		(3.03	)		(1.50	)

Less Distributions:
Tax return of capital distributions		—			—			(0.02	)		—

Net Asset Value, end of period	$	5.89		$	4.22		$	5.45		$	8.50

Total Investment Return(b)		39.57	%		(22.57	)%		(35.64	)%		(15.00	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	105.6		$	34.9		$	19.9		$	7.6
Ratios to average net assets:(d)
Expenses		1.15	%		1.24	%		1.24	%		1.24	%(c)
Net investment income		0.56	%		0.26	%(g)		0.31	%(g)		0.51	%(c)
Portfolio turnover rate		121	%		108	%		86	%		12	%(e)

(a)	Commencement of offering of Class I shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income ratios would have been 1.40% and 0.10%, respectively, for the year ended December 31, 2002 and 1.86% and (0.30)%, respectively, for the year ended December 31, 2001 and 3.44% and (1.69)%, respectively, for the year ended December 31, 2000.

(e)	Not annualized.

(f)	Calculated based upon weighted average shares outstanding during the year.

(g)

Includes custody fee credits of 0.02% and 0.12% for the year ended December 31, 2002 and the year ended December 31, 2001, respectively. If the Portfolio had not earned custodian fee credits, the annual net investment income would have been 0.24% and 0.19%, respectively for the year ended December 31, 2002 and the year ended December 31, 2001.

SEE NOTES TO FINANCIAL STATEMENTS.

D13

Financial Highlights


	SP Jennison International Growth Portfolio
	Class II
	Year Ended December 31,									October 4, 2000(a) through December 31, 2000
	2003			2002			2001(g)			October 4, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.19		$	5.43		$	8.48		$	9.79

Income From Investment Operations:
Net investment income (loss)		0.01			—	(f)		—	(f)		—	(f)
Net realized and unrealized gains (losses) on investments		1.63			(1.24	)		(3.04	)		(1.31	)

Total from investment operations		1.64			(1.24	)		(3.04	)		(1.31	)

Less Distributions:
Tax return of capital distributions		—			—			(0.01	)		—
Net Asset Value, end of period	$	5.83		$	4.19		$	5.43		$	8.48

Total Investment Return(b)		39.14	%		(22.84	)%		(35.92	)%		(13.28	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	113.6		$	23.6		$	14.9		$	2.7
Ratios to average net assets:(d)
Expenses		1.54	%		1.64	%		1.64	%		1.64	%(c)
Net investment income (loss)		0.04	%		(0.11	)%(h)		(0.03	)%(h)		—	%(c)
Portfolio turnover rate		121	%		108	%		86	%		12	%(e)

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 1.80% and (0.26)%, respectively, for the year ended December 31, 2002 and 2.26% and (0.66)%, respectively, for the year ended December 31, 2001 and 3.84% and (2.20)%, respectively, for the year ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.

(g)	Calculated based upon weighted average shares outstanding during the year.

(h)

Includes custody fee credits of 0.02% and 0.13% for the year ended December 31, 2002 and the year ended December 31, 2001, respectively. If the Portfolio had not earned custodian fee credits, the annual net investment loss would have been (0.13)% and (0.16)%, respectively for the year ended December 31, 2002 and the year ended December 31, 2001.

SEE NOTES TO FINANCIAL STATEMENTS.

D14

Financial Highlights


	SP Large Cap Value Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	7.81		$	9.44		$	10.44		$	10.00

Income From Investment Operations:
Net investment income		0.09			0.08			0.09			0.04
Net realized and unrealized gains (losses) on investments		2.00			(1.62	)		(0.99	)		0.44

Total from investment operations		2.09			(1.54	)		(0.90	)		0.48

Less Distributions:
Dividends from net investment income		—			(0.09	)		(0.10	)		(0.04	)
Distributions in excess of net investment income		—			—			—			—	(e)
Tax Return of Capital		—			—	(e)		—			—

Total distributions		—			(0.09	)		(0.10	)		(0.04	)

Net Asset Value, end of period	$	9.90		$	7.81		$	9.44		$	10.44

Total Investment Return(b)		26.76	%		(16.37	)%		(8.65	)%		4.82	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	72.9		$	38.3		$	23.7		$	3.9
Ratios to average net assets:(d)
Expenses		0.90	%		0.90	%		0.90	%		0.90	%(c)
Net investment income		1.32	%		1.22	%		1.18	%		1.60	%(c)
Portfolio turnover rate		73	%		96	%		61	%		13	%(f)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income (loss) ratios would have been 1.11% and 1.11%, respectively, for the year ended December 31, 2003 and 1.31% and 0.81%, respectively, for the year ended December 31, 2002, 1.98% and 0.10%, respectively, for the year ended December 31, 2001 and 5.47% and (2.97)%, respectively, for the period ended December 31, 2000.

(e)	Less than $0.005 per share.

(f)	Not annualized.


	SP MFS Capital Opportunities Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.00		$	7.01		$	9.15		$	10.00

Income From Investment Operations:
Net investment income		0.01			0.01			—	(f)		0.01
Net realized and unrealized gain (loss) on investments		1.33			(2.02	)		(2.13	)		(0.85	)

Total from investment operations		1.34			(2.01	)		(2.13	)		(0.84	)

Less Distributions:
Dividends from net investment income		(0.01	)		—			(0.01	)		(0.01	)

Net Asset Value, end of period	$	6.33		$	5.00		$	7.01		$	9.15

Total Return(b)		26.80	%		(28.67	)%		(23.28	)%		(8.39	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	20.3		$	9.3		$	8.2		$	4.3
Ratios to average net assets:(d)
Expenses		1.00	%		1.00	%		1.00	%		1.00	%(c)
Net investment income		0.34	%		0.16	%		(—	)%(g)		0.40	%(c)
Portfolio turnover rate		58	%		143	%		99	%		25	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 2.02% and (0.69)%, respectively, for the year ended December 31, 2003 and 2.28% and (1.12)%, respectively, for the year ended December 31, 2002, 3.04% and (2.04)%, respectively, for the year ended December 31, 2001 and 5.48% and (4.08)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.

(g)	Less than $0.005%.

SEE NOTES TO FINANCIAL STATEMENTS.

D15

Financial Highlights


	SP Mid-Cap Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.09		$	7.62		$	9.69		$	10.00

Income From Investment Operations:
Net investment income loss		(0.02	)		(0.02	)		(0.01	)		0.02
Net realized and unrealized gain (loss) on investments		1.66			(3.51	)		(2.01	)		(0.25	)

Total from investment operations		1.64			(3.53	)		(2.02	)		(0.23	)

Less Distributions:
Dividends from net investment income		—			—			(0.01	)		(0.02	)
Distributions from net realized gains		—			—			(0.04	)		(0.06	)

Total distributions		—			—			(0.05	)		(0.08	)

Net Asset Value, end of period	$	5.73		$	4.09		$	7.62		$	9.69

Total Investment Return(b)		40.10	%		(46.33	)%		(20.93	)%		(2.26	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	58.9		$	18.3		$	15.9		$	5.6
Ratios to average net assets:(d)
Expenses		1.00	%		1.00	%		1.00	%		1.00	%(c)
Net investment income (loss)		(0.73	)%		(0.59	)%		(0.20	)%		1.16	%(c)
Portfolio turnover rate		73	%		255	%		93	%		27	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 1.34% and (1.07)%, respectively, for the year ended December 31, 2003, 1.68% and (1.27)%, respectively, for the year ended December 31, 2002, 2.11% and (1.31)%, respectively, for the year ended December 31, 2001 and 4.59% and (2.43)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.


	SP PIMCO High Yield Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.17		$	9.81		$	10.02		$	10.00

Income From Investment Operations:
Net investment income		0.65			0.64			0.59			0.17
Net realized and unrealized gains (losses) on investments		1.36			(0.64	)		(0.21	)		0.02

Total from investment operations		2.01			—			0.38			0.19

Less Distributions:
Dividends from net investment income		(0.65	)		(0.64	)		(0.59	)		(0.16	)
Distributions from net realized gains		—			—			—			(0.01	)
Distributions in excess of net realized capital gains		—			—			—			—	(d)

Total distributions		(0.65	)		(0.64	)		(0.59	)		(0.17	)

Net Asset Value, end of period	$	10.53		$	9.17		$	9.81		$	10.02

Total Investment Return(b)		22.41	%		0.15	%		3.97	%		1.94	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	248.2		$	112.2		$	52.0		$	8.0
Ratios to average net assets:
Expenses		0.72	%		0.82	%		0.82	%(e)		0.82	%(c)(e)
Net investment income		6.97	%		7.79	%		7.44	%(e)		7.78	%(c)(e)
Portfolio turnover rate		74	%		108	%		105	%		88	%(f)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Less than $0.005 per share.

(e)	Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income ratios would have been 1.08% and 7.18%, respectively, for the year ended December 31, 2001 and 3.42% and 5.18%, respectively, for the period ended December 31, 2000.

(f)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D16

Financial Highlights


	SP PIMCO Total Return Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	11.41		$	10.70		$	10.40		$	10.00

Income From Investment Operations:
Net investment income		0.23			0.28			0.32			0.13
Net realized and unrealized gains on investments		0.43			0.71			0.57			0.39

Total from investment operations		0.66			0.99			0.89			0.52

Less Distributions:
Dividends from net investment income		(0.28	)		(0.28	)		(0.34	)		(0.11	)
Distributions from net realized gains		(0.25	)		—	(f)		(0.25	)		(0.01	)

Total distributions		(0.53	)		(0.28	)		(0.59	)		(0.12	)

Net Asset Value, end of period	$	11.54		$	11.41		$	10.70		$	10.40

Total Investment Return(b)		5.85	%		9.39	%		8.66	%		5.18	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	839.1		$	471.7		$	147.0		$	10.7
Ratios to average net assets:
Expenses		0.65	%		0.67	%		0.76	%(d)		0.76	%(c)(d)
Net investment income		2.19	%		3.02	%		3.69	%(d)		5.94	%(c)(d)
Portfolio turnover rate		656	%		574	%		718	%		239	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income ratios would have been 0.82% and 3.63%, respectively, for the year ended December 31, 2001 and 2.73% and 3.97%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.


	SP Prudential U.S. Emerging Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.68		$	6.89		$	8.38		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.02	)		(0.02	)		(0.01	)		0.01
Net realized and unrealized gains (losses) on investments		1.99			(2.19	)		(1.48	)		(1.62	)

Total from investment operations		1.97			(2.21	)		(1.49	)		(1.61	)

Less Dividends:
Dividends from net investment income		—			—			—			(0.01	)

Net Asset Value, end of period	$	6.65		$	4.68		$	6.89		$	8.38

Total Investment Return(b)		42.09	%		(32.08	)%		(17.78	)%		(16.11	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	170.0		$	51.0		$	31.2		$	6.4
Ratios to average net assets:
Expenses		0.80	%		0.90	%(d)		0.90	%(d)		0.90	%(c)(d)
Net investment income (loss)		(0.56	)%		(0.48	)%(d)		(0.37	)%(d)		0.49	%(c)(d)
Portfolio turnover rate		213	%		299	%		258	%		82	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 0.98% and (0.56)%, respectively, for the year ended December 31, 2002, 1.41% and (0.88)%, respectively, for the year ended December 31, 2001 and 4.26% and (2.87)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D17

Financial Highlights


	SP Prudential U.S. Emerging Growth Portfolio
	Class II
	Year Ended December 31,						July 9, 2001(a) through December 31, 2001
	2003			2002			July 9, 2001(a) through December 31, 2001
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.65		$	6.88		$	7.56

Income From Investment Operations:
Net investment loss		(0.05	)		(0.05	)		(0.01	)
Net realized and unrealized gains (losses) on investments		1.98			(2.18	)		(0.67	)

Total from investment operations		1.93			(2.23	)		(0.68	)

Net Asset Value, end of period	$	6.58		$	4.65		$	6.88

Total Investment Return(b)		41.51	%		(32.41	)%		(8.99	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	0.3		$	0.2		$	0.2
Ratios to average net assets:
Expenses		1.20	%		1.30	%(c)		1.30	%(c)(d)
Net investment loss		(0.97	)%		(0.89	)%(c)		(0.87	)%(c)(d)
Portfolio turnover rate		213	%		299	%		258	%

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have 1.38% and (0.95)%, respectively, for the year ended December 31, 2002, 1.81% and (1.38)%, respectively, for the period ended December 31, 2001.

(d)	Annualized.


	SP Small/Mid Cap Value Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.68		$	11.36		$	11.13		$	10.00

Income From Investment Operations:
Net investment income		0.02			0.05			0.08			0.03
Net realized and unrealized gains (losses) on investments		3.18			(1.68	)		0.26			1.10

Total from investment operations		3.20			(1.63	)		0.34			1.13

Less Dividends:
Dividends from net investment income		—	(b)		(0.05	)		(0.11	)		—	(b)

Net Asset Value, end of period	$	12.88		$	9.68		$	11.36		$	11.13

Total Investment Return(c)		33.11	%		(14.38	)%		3.11	%		11.33	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	250.6		$	99.2		$	47.4		$	6.1
Ratios to average net assets:
Expenses		1.04	%		1.05	%(e)		1.05	%(e)		1.05	%(d)(e)
Net investment income		0.37	%		0.69	%(e)		1.08	%(e)		1.79	%(d)(e)
Portfolio turnover rate		90	%		116	%		89	%		18	%(f)

(a)	Commencement of operations.

(b)	Less than $0.005 per share.

(c)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(d)	Annualized.

(e)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income (loss) ratios would have been 1.10% and 0.64%, respectively, for the year ended December 31, 2002, 1.56% and 0.57%, respectively, for the year ended December 31, 2001 and 4.84% and (2.00)%, respectively, for the period ended December 31, 2000.

(f)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D18

Financial Highlights


	SP Strategic Partners Focused Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001(g)			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.03		$	6.73		$	7.94		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.01	)		(0.01	)		(0.01	)		—	(f)
Net realized and unrealized gains (losses) on investments		1.31			(1.69	)		(1.20	)		(2.06	)

Total from investment operations		1.30			(1.70	)		(1.21	)		(2.06	)

Net Asset Value, end of period	$	6.33		$	5.03		$	6.73		$	7.94

Total Investment Return(b)		25.84	%		(25.26	)%		(15.32	)%		(20.47	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	21.6		$	10.8		$	7.7		$	5.9
Ratios to average net assets:(d)
Expenses		1.01	%		1.01	%		1.01	%		1.01	%(c)
Net investment income (loss)		(0.28	)%		(0.30	)%		(0.16	)%		0.18	%(c)
Portfolio turnover rate		93	%		62	%		116	%		37	%(e)

(a)	Commencement of offering of Class I shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 1.65% and (0.92)%, respectively, for the year ended December 31, 2003, 1.98% and (1.28)%, respectively, for the year ended December 31, 2002, 2.61% and (1.76)%, respectively, for the year ended December 31, 2001 and 3.88% and (2.69)%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share

(g)	Calculated based upon weighted average shares outstanding during the year.


	SP Strategic Partners Focused Growth Portfolio
	Class II
	Year Ended December 31,						January 12, 2001(a) through December 31, 2001(e)
	2003			2002
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.99		$	6.70		$	8.43

Income From Investment Operations:
Net investment loss		(0.03	)		(0.02	)		(0.03	)
Net realized and unrealized gains (losses) on investments		1.30			(1.69	)		(1.70	)

Total from investment operations		1.27			(1.71	)		(1.73	)

Net Asset Value, end of period	$	6.26		$	4.99		$	6.70

Total Investment Return(b)		25.45	%		(25.52	)%		(20.80	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	14.3		$	6.6		$	2.0
Ratios to average net assets:(d)
Expenses		1.41	%		1.41	%		1.41	%(c)
Net investment loss		(0.68	)%		(0.68	)%		(0.58	)%(c)
Portfolio turnover rate		93	%		62	%		116	%

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have been 2.05% and (1.32)%, respectively, for the year ended December 31, 2003, 2.34% and (1.61)%, respectively, for the year ended December 31, 2002 and 3.01% and (2.18)%, respectively, for the period ended December 31, 2001.

(e)	Calculated based upon weighted average shares outstanding during the period.

SEE NOTES TO FINANCIAL STATEMENTS.

D19

Financial Highlights


	Stock Index Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	24.09		$	31.64		$	38.66		$	44.45		$	37.74

Income From Investment Operations:
Net investment income		0.36			0.37			0.36			0.36			0.44
Net realized and unrealized gains (losses) on investments		6.14			(7.34	)		(5.05	)		(4.37	)		7.23

Total from investment operations		6.50			(6.97	)		(4.69	)		(4.01	)		7.67

Less Distributions:
Dividends from net investment income		(0.37	)		(0.36	)		(0.35	)		(0.37	)		(0.43	)
Distributions from net realized gains		(0.93	)		(0.22	)		(1.98	)		(1.41	)		(0.53	)

Total distributions		(1.30	)		(0.58	)		(2.33	)		(1.78	)		(0.96	)

Net Asset Value, end of year	$	29.29		$	24.09		$	31.64		$	38.66		$	44.45

Total Investment Return(a)		28.18	%		(22.19	)%		(12.05	)%		(9.03	)%		20.45	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	2,940.9		$	2,352.3		$	3,394.1		$	4,186.0		$	4,655.0
Ratios to average net assets:
Expenses		0.37	%		0.37	%		0.39	%		0.39	%		0.39	%
Net investment income		1.42	%		1.25	%		1.02	%		0.83	%		1.09	%
Portfolio turnover rate		2	%		4	%		3	%		7	%		2	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Value Portfolio
	Class I
	Year Ended December 31,
	2003			2002(b)			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	13.75		$	17.91		$	20.46		$	19.52		$	20.03

Income From Investment Operations:
Net investment income		0.23			0.22			0.25			0.46			0.51
Net realized and unrealized gains (losses) on investments		3.62			(4.15	)		(0.69	)		2.45			1.89

Total from investment operations		3.85			(3.93	)		(0.44	)		2.91			2.40

Less Distributions:
Dividends from net investment income		(0.24	)		(0.23	)		(0.30	)		(0.44	)		(0.50	)
Distributions from net realized gains		—			—			(1.81	)		(1.53	)		(2.41	)
Tax return of capital distributions		—	(c)		—			—			—			—

Total distributions		(0.24	)		(0.23	)		(2.11	)		(1.97	)		(2.91	)

Net asset value, end of year	$	17.36		$	13.75		$	17.91		$	20.46		$	19.52

Total Investment Return(a)		28.07	%		(21.97	)%		(2.08	)%		15.59	%		2.52	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,456.1		$	1,247.0		$	1,801.4		$	1,975.3		$	2,040.0
Ratios to average net assets:
Expenses		0.44	%		0.43	%		0.44	%		0.45	%		0.42	%
Net investment income		1.49	%		1.39	%		1.32	%		2.31	%		2.34	%
Portfolio turnover rate		72	%		94	%		175	%		85	%		16	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Calculated based upon weighted average shares outstanding during the year.

(c)	Less than .005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

D20

Financial Highlights


	Value Portfolio
	Class II
	Year Ended December 31,						May 14, 2001(c) through December 31, 2001
	2003(d)			2002(d)			May 14, 2001(c) through December 31, 2001
Per Share Operating Performance:
Net Asset Value, beginning of year	$	13.75		$	17.91		$	19.79

Income From Investment Operations:
Net investment income		0.16			0.16			0.12
Net realized and unrealized gain (losses) on investments		3.62			(4.15	)		(1.01	)

Total from investment operations		3.78			(3.99	)		(0.89	)

Less Distributions:
Dividends from net investment income		(0.16	)		(0.17	)		(0.14	)
Distributions from net realized gains		—			—			(0.85	)
Tax return of capital distributions		—	(e)		—			—

Total distributions		(0.16	)		(0.17	)		(0.99	)

Net Asset Value, end of year	$	17.37		$	13.75		$	17.91

Total Investment Return(a)		27.63	%		(22.35	)%		(4.34	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	2.9		$	1.5		$	1.1
Ratios to average net assets:
Expenses		0.84	%		0.83	%		0.84	%(b)
Net investment income		1.10	%		1.04	%		0.94	%(b)
Portfolio turnover rate		72	%		94	%		175	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(b)	Annualized.

(c)	Commencement of offering of Class II shares.

(d)	Calculated based upon weighted average shares outstanding during the year.

(e)	Less than $0.005 per share.


	Zero Coupon Bond Portfolio 2005
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	13.73		$	13.77		$	13.38		$	12.68		$	13.44

Income From Investment Operations:
Net investment income		0.60			0.59			0.65			0.65			0.67
Net realized and unrealized gains (losses) on investments		(0.34	)		0.75			0.42			1.02			(1.43	)

Total from investment operations		0.26			1.34			1.07			1.67			(0.76	)

Less Distributions:
Dividends from net investment income		(0.60	)		(1.25	)		(0.64	)		(0.67	)		—
Distributions from net realized gains		(0.01	)		(0.13	)		(0.04	)		(0.30	)		—

Total distributions		(0.61	)		(1.38	)		(0.68	)		(0.97	)		—

Net Asset Value, end of year	$	13.38		$	13.73		$	13.77		$	13.38		$	12.68

Total Investment Return(a)		1.90	%		10.40	%		8.11	%		13.76	%		(5.66	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	63.9		$	66.8		$	55.0		$	49.8		$	45.4
Ratios to average net assets:
Expenses		0.66	%		0.63	%		0.63	%		0.65	%		0.59	%
Net investment income		4.33	%		4.64	%		5.05	%		5.26	%		5.31	%
Portfolio turnover rate		8	%		1	%		10	%		67	%		15	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

D21

REPORT OF INDEPENDENT AUDITORS

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF THE PRUDENTIAL SERIES FUND, INC.:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios constituting The Prudential Series Fund, Inc. (hereafter referred to as the “Portfolios”) at December 31, 2003, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolios’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

New York, New York

February 13, 2004

Tax Information (Unaudited)

Although we understand that the vast majority, if not all, of the shareholders/contract holders of the Series Fund currently maintain a tax deferred status, we are nevertheless required by the Internal Revenue Code to advise you within 60 days of the Series Fund’s fiscal year end (December 31, 2003) as to the federal tax status of dividends paid by the Series Fund during such fiscal year. Accordingly, we are advising you that in 2003, the Series Fund paid dividends as follows:


	Ordinary Income		Long-Term Capital Gains		Tax Return of Capital		Total Distributions
Conservative Balanced Portfolio	$	0.355		—	—		$	0.355
Diversified Bond Portfolio		0.451		—	—			0.451
Diversified Conservative Growth Portfolio		0.439		—	—			0.439
Equity Portfolio (Class I)		0.178		—	—			0.178
Equity Portfolio (Class II)		0.090		—	—			0.090
Flexible Managed Portfolio		0.276		—	—			0.276
Global Portfolio		0.047		—	—			0.047
Government Income Portfolio		0.771	$	0.117	—			0.888
High Yield Bond Portfolio		0.424		—	—			0.424
Jennison Portfolio (Class I)		0.038		—	—			0.038
Jennison Portfolio (Class II)		—		—	—			—
Jennison 20/20 Focus Portfolio (Class I)		0.020		—	—			0.020
Jennison 20/20 Focus Portfolio (Class II)		—		—	—			—
Money Market Portfolio		0.083		—	—			0.083
Natural Resources Portfolio		1.041		1.447	—			2.488
Small Capitalization Stock Portfolio		0.071		0.094	—			0.165
SP Aggressive Growth Asset Allocation Portfolio		0.002		—	—			0.002
SP AIM Aggressive Growth Portfolio		—		—	—			—
SP AIM Core Equity Portfolio		0.022		—	—			0.022
SP Alliance Large Cap Growth Portfolio		—		—	—			—
SP Alliance Technology Portfolio		—		—	—			—
SP Balanced Asset Allocation Portfolio		0.098		—	—			0.098
SP Conservative Asset Allocation Portfolio		0.153		0.013	—			0.166
SP Davis Value Portfolio		0.045		—	—			0.045
SP Deutsche International Equity Portfolio		0.055		—	—			0.055
SP Growth Asset Allocation Portfolio		0.049		—	—			0.049
SP INVESCO Small Company Growth Portfolio		—		—	—			—
SP Jennison International Portfolio (Class I)		—		—	—			—
SP Jennison International Portfolio (Class II)		—		—	—			—
SP Large Cap Value Portfolio		—		—	—			—
SP MFS Capital Opportunities Portfolio		0.008		—	—			0.008
SP Mid Cap Growth Portfolio		—		—	—			—
SP PIMCO High Yield Portfolio		0.650		—	—			0.650
SP PIMCO Total Return Portfolio		0.453		0.080	—			0.533
SP Prudential U.S. Emerging Growth Portfolio (Class I)		—		—	—			—
SP Prudential U.S. Emerging Growth Portfolio (Class II)		—		—	—			—
SP Small/Mid Cap Value Portfolio		0.003		—	—			0.003
SP Strategic Partners Focused Growth Portfolio (Class I)		—		—	—			—
SP Strategic Partners Focused Growth Portfolio (Class II)		—		—	—			—
Stock Index Portfolio		0.372		0.925	—			1.297
Value Portfolio (Class I)		0.242		—	—	(a)		0.242
Value Portfolio (Class II)		0.163		—	—	(a)		0.163
Zero Coupon Bond 2005 Portfolio		0.600		0.008	—			0.608

(a)

Less than $0.005 per share.

MANAGEMENT OF THE FUND

(Unaudited)

Information pertaining to the Directors of the Fund is set forth below. Directors who are not deemed to be “interested persons” of the Fund as defined in the Investment Company Act are referred to as “Independent Directors.” Directors who are deemed to be “interested persons” of the Fund are referred to as “Interested Directors.” “Fund Complex” consists of the Fund and any other investment companies managed by Prudential Investments LLC (PI).


Name, Address, and Age**	Position with Fund* Term of Office* Length of Time Served**	Number of Portfolios In Fund Complex Overseen by Director	Other Directorships Held by the Director****


Saul K. Fenster, Ph.D. (70)	Director, Since 1983	81	Member (since 2000), Board of Directors of IDT Corporation

Principal Occupations During Past 5 Years – President Emeritus of New Jersey Institute of Technology (since 2002); formerly President (1978-2002) of New Jersey Institute of Technology; Commissioner (1998-2002) of the Middle States Association Commission on Higher Education; Commissioner (1985-2002) of the New Jersey Commission on Science and Technology; Director (since 1998) Society of Manufacturing Engineering Education Foundation, Director (since 1995) of Prosperity New Jersey; formerly a director or trustee of Liberty Science Center, Research and Development Council of New Jersey, New Jersey State Chamber of Commerce, and National Action Council for Minorities in Engineering.


Delayne Dedrick Gold (65)	Director, Since 2001	85	—

Principal Occupations During Past 5 Years – Marketing Consultant (1982-present); formerly Senior Vice President and Member of the Board of Directors, Prudential Bache Securities, Inc.


Julian A. Lerner (79)	Director Emeritus, Since 2003	78	—

Principal Occupations During Past 5 Years – Senior Vice President and Portfolio Manager (1986-1995); AIM Charter Fund and AIM Summit Fund.


W. Scott McDonald, Jr. (66)	Director, Since 1983	81	—

Principal Occupations During Past 5 Years – Management Consultant (since 1997) at Kaludis Consulting Group, Inc. (company serving higher education); Formerly, principal (1995-1997), Scott McDonald & Associates, Chief Operating Officer (1991-1995), Fairleigh Dickinson University, Executive Vice President and Chief Operating Officer (1975-1991), Drew University, interim President (1988-1990), Drew University and former Director of School, College and University Underwriters Ltd.


Thomas T. Mooney (62)	Director, Since 2001	81	Director (since 1988) of The High Yield Plus Fund, Inc.

Principal Occupations During Past 5 Years – Chief Executive Officer, the Rochester Business Alliance, formerly President of the Greater Rochester Metro Chamber of Commerce, Rochester City Manager; formerly Deputy Monroe County Executive; Director of Blue Cross of Rochester and Executive Service Corps of Rochester; Director of the Rochester Individual Practice Association; Director of Rural Metro Ambulance Rochester (since 2003).


Thomas M. O’Brien (53)	Director, Since 2003	78	Director (December 1996-May 2000) of North Fork Bank; Director (since May 2000) of Atlantic Bank of New York.

Principal Occupations During Past 5 Years – President and Chief Executive Officer (since May 2000) of Atlantic Bank of New York; Vice Chairman (January 1997-April 2000) of North Fork Bank; President and Chief Executive Officer (December 1984-December 1996) of North Side Savings Bank.


John A. Pileski (64)	Director, Since 2003	78	Director (since April 2001) of New York Community Bank; Director (since January 1997) of Queens Museum of Art; Director (since May 1980) of Surf Club of Quogue, Inc.

Principal Occupations During Past 5 Years – Retired since June 2000; Tax Partner (July 1974-June 2000) of KPMG, LLP.


F. Don Schwartz (68)	Director, Since 2003	78	—

Principal Occupations During Past 5 Years – Management Consultant (since April 1985).


Louis A. Weil, III (62)	Director, Since 2001	80	—

Principal Occupations During Past 5 Years – Formerly Chairman (January 1999-July 2000), President and Chief Executive Officer (January 1996-July 2000) and Director (since September 1991) of Central Newspapers, Inc.; formerly Chairman of the Board (January 1996-July 2000), Publisher and Chief Executive Officer (August 1991-December 1995) of Phoenix Newspapers, Inc.

Interested Directors


Name, Address, and Age**	Position with Fund* Term of Office* Length of Time Served**	Number of Portfolios In Fund Complex Overseen by Director	Other Directorships Held by the Director****


*David R. Odenath (46)	Chairman and Director Since 1999	79	—

Principal Occupations During Past 5 Years – President of Prudential Annuities (since August 2002); Executive Vice President (since May 2003) of American Skandia Investment Services, Inc.; Chief Executive Officer and Director (since May 2003) of American Skandia Life Assurance Corporation, American Skandia Information Services and Technology Corporation and Skandia U.S. Inc.; President, Chief Executive Officer and Director (since May 2003) of American Skandia Marketing, Inc.; Formerly President, Chief Executive Officer, Chief Operating Officer and Officer-In-Charge (1999-2003) of Prudential Investments LLC (PI); Senior Vice President (since June 1999) of The Prudential Insurance Company of America (Prudential Insurance); formerly Senior Vice President (August 1993-May 1999) of PaineWebber Group, Inc.


*Robert F. Gunia (57)	Vice President and Director since 2001	179	Vice President and Director (since May 1989) and Treasurer (since 1999) of The Asia Pacific Fund, Inc.

Principal Occupations During Past 5 Years – Chief Administrative Officer (since June 1999) of PI; Executive Vice President and Treasurer (since January 1996) of PI; President (since April 1999) of Prudential Investment Management Services LLC (PIMS); Corporate Vice President (since September 1997) of Prudential Insurance; Director, Executive Vice President and Chief Administrative Officer (since May 2003) of American Skandia Investment Services, Inc., American Skandia Advisory Services, Inc., and American Skandia Fund Services, Inc.; President (since April 1999) of Prudential Investment Management Services LLC; Executive Vice President (since March 1999) and Treasurer (since May 2000) of Prudential Mutual Fund Services LLC; formerly Senior Vice President (March 1987-May 1999) of Prudential Securities Incorporated (Prudential Securities).


Officers
Name, Address, and Age**	Position with Fund* Term of Office* Length of Time Served**	Principal Occupations During Past 5 Years


Grace C. Torres (44)	Treasurer and Principal Financial and Accounting Officer Since 1997	Senior Vice President (since January 2000) of PI; Senior Vice President and Assistant Treasurer (since May 2003) of American Skandia Investment Services, Inc. and American Skandia Advisory Services, Inc.; formerly First Vice President (December 1996-January 2000) of PI and First Vice President (March 1993-1999) of Prudential Securities.


Jeffrey M. Scarbel (40)	Assistant Treasurer Since 2000	Vice President (since November 2000) of PI; formerly Director (October 1996-November 2000) of PI.


Jonathan D. Shain (45)	Secretary Since 2001	Vice President and Corporate Counsel (since August 1998) of Prudential Insurance; Vice President and Assistant Secretary (since May 2003) of American Skandia Investment Services, Inc. and American Skandia Fund Services, Inc.; formerly Attorney with Fleet Bank, N.A. (January 1997-July 1998).


Marguerite E. H. Morrison (47)	Assistant Secretary Since 2002; Chief Legal Officer Since 2003	Vice President and Chief Legal Officer-Mutual Funds and Unit Investment Trusts (since August 2000) of Prudential Insurance; Senior Vice President and Secretary (since April 2003) of PI; Senior Vice President and Secretary (since May 2003) of American Skandia Investment Services, Inc., American Skandia Advisory Services, Inc., and American Skandia Fund Services, Inc.; Vice President and Assistant Secretary of PIMS (since October 2001), previously Senior Vice President and Assistant Secretary (February 2001-April 2003) of PI, Vice President and Associate General Counsel (December 1996-February 2001) of PI.


Edward P. Macdonald (36)	Assistant Secretary Since 2003	Vice President and Assistant Secretary (since May 2003) of American Skandia Investment Services, Inc.; Chief Counsel, Investment Management of American Skandia, Inc. (ASI) (since July 2002); Senior Counsel, Securities of ASI (September 2000-June 2002); Counsel of ASI (December 1999- August 2000); Senior Associate of Counsel of ASI (April 1999-December 1999); Branch Chief, Senior Counsel and Attorney at the U.S. Securities and Exchange Commission (October 1994-April 1999).


Maryanne Ryan (39)	Anti-Money Laundering Compliance Officer Since 2002	Vice President, Prudential Insurance (since November 1998), First Vice President Prudential Securities (March 1997-May 1998); Anti-Money Laundering Compliance Officer (since 2003) of American Skandia Investment Services, Inc., American Skandia Advisory Services, Inc. and American Skandia Marketing, Inc.

* “Interested” Director, as defined in the Investment Company Act, by reason of employment with the Manager (as defined below), and/or the Distributor (as defined below).

** Unless otherwise noted, the address of the Directors and Officers is c/o: Prudential Investments LLC, Gateway Center Three, 100 Mulberry Street, Newark, New Jersey 07102.

*** There is no set term of office for Directors and Officers. The Independent Directors have adopted a retirement policy, which calls for the retirement of Directors on December 31 of the year in which they reach the age of 75. The table shows how long they have served as Director and/or Officer.

**** This column includes only directorships of companies required to register, or file reports with the SEC under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Investment Company Act.

To reduce costs, we now generally send only a single copy of prospectuses and shareholder reports to each household (“householding”) in lieu of sending a copy to each Contract Owner who resides in the household. You should be aware that by calling (877) 778-5008, you can revoke or “opt out” of householding at any time.

Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details.

All data from the outside companies was provided to Prudential Financial from the fund directly. Prudential Financial does not guarantee the accuracy or completeness thereof.

Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.



PO Box 7478 Philadelphia, PA 19101-7478		Presorted Standard U.S. Postage PAID Prudential


VARIABLE ANNUITIES				ANNUAL REPORT		DECEMBER 31, 2003

Discovery Select^{^®}Variable Annuity

Discovery Choice^{^®}Variable Annuity

VARIABLE ANNUITIES

n	Pruco Life’s Discovery Select^{^®}

n	Pruco Life of New Jersey’s Discovery Select^{^®}

n	Pruco Life’s Discovery Choice^{^®}

n	Pruco Life of New Jersey’s Discovery Choice^{^®}

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Pruco Life Insurance Company

Pruco Life Insurance Company of New Jersey

213 Washington Street, Newark, NJ 07102-2992

Pruco Life Insurance Company is not licensed to do business in New York.

IFS-2004-A072892

This report includes the financial statements of the variable investment options in the Discovery Select^®variable annuity and Discovery Choice^®variable annuity. It does not include the financial statements for your separate account. Discovery Select variable annuity was first offered to the public on October 7, 1996. Discovery Choice variable annuity was first offered on November 1, 1999.

IMPORTANT NOTE

This report may be used with the public only when preceded or accompanied by current prospectuses for the Discovery Select variable annuity, the Discovery Choice variable annuity, and the current Monthly Performance Review. The Monthly Performance Review reflects the reinvestment of all dividends and capital gains, and the deduction of investment management fees, expenses, and product-related insurance charges. It also provides returns that are net of all contract charges, including applicable surrender or withdrawal charges.

Investors should carefully consider the contract and the underlying portfolios’ investment objectives, risks, and charges and expenses before investing. The contract’s prospectus and the underlying portfolios’ prospectus contain information relating to investment objectives, risks, and charges and expenses, as well as other important information. Read them carefully before investing or sending money.

Like most annuity contracts, Discovery Select and Discovery Choice variable annuities contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional will be glad to provide you with costs and complete details.

All data from the outside companies was provided to Prudential Financial from the fund directly. Prudential Financial does not guarantee the accuracy or completeness thereof.

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Variable Annuities		Annual Report		December 31, 2003

Table of Contents

Letter to Contract Owners

n	THE PRUDENTIAL SERIES FUND, INC. PORTFOLIOS


Diversified Bond Portfolio		SP Growth Asset Allocation Portfolio
Diversified Conservative Growth Portfolio		SP INVESCO Small Company Growth Portfolio
Equity Portfolio		SP Jennison International Growth Portfolio
Global Portfolio		SP Large Cap Value Portfolio
High Yield Bond Portfolio		SP MFS Capital Opportunities Portfolio
Jennison Portfolio		SP Mid Cap Growth Portfolio
Jennison 20/20 Focus Portfolio		SP PIMCO Total Return Portfolio
Money Market Portfolio		SP Prudential U.S. Emerging Growth Portfolio
Small Capitalization Stock Portfolio		SP Small/Mid Cap Value Portfolio
SP Aggressive Growth Asset Allocation Portfolio		SP Strategic Partners Focused Growth Portfolio
SP Alliance Technology Portfolio		Stock Index Portfolio
SP Balanced Asset Allocation Portfolio		Value Portfolio
SP Conservative Asset Allocation Portfolio

n	AIM VARIABLE INSURANCE FUNDS, INC.

AIM V.I. Core Equity Fund

AIM V.I. Premier Equity Fund

n	ALLIANCE BERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

AllianceBernstein Premier Growth Portfolio

n	AMERICAN CENTURY VARIABLE PORTFOLIO

American Century VP Value Fund

n	CREDIT SUISSE TRUST

Global Post-Venture Capital Portfolio

n	DAVIS VARIABLE ACCOUNT FUND, INC.

Davis Value Portfolio

n	FRANKLIN^{^®}TEMPLETON^{^®}VARIABLE INSURANCE PRODUCTS TRUST

Franklin^{^®}Small Cap Fund, Class II

n	JANUS ASPEN SERIES

Janus Aspen Growth Portfolio, Institutional Shares

Janus Aspen International Growth Portfolio, Institutional Shares

n	MFS^{^®}VARIABLE INSURANCE TRUST^SM

MFS^{^®}Emerging Growth Series

MFS^{^®}Research Series

n	OPCAP ADVISORS

PIMCO Advisors VIT OpCap Managed Portfolio

PIMCO Advisors VIT OpCap Small Cap Portfolio

n	T. ROWE PRICE INTERNATIONAL SERIES, INC.

T. Rowe Price Equity Income Portfolio

T. Rowe Price International Stock Portfolio

This report may include financial information pertaining to certain portfolios that are not available through the variable annuity contract that you have chosen. Please refer to your variable annuity prospectus to determine which portfolios are available to you.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Letter to Contract Owners

LOGO

CHAIRMAN

DAVID R. ODENATH, JR.

n	DEAR CONTRACT OWNER

The year 2003 was noteworthy for Prudential Financial. We successfully joined American Skandia and Prudential Annuities to create a strong, innovative organization. More clients are entrusting their retirement savings to us, and our market share continues to grow. As of September 30, we ranked sixth in advisor-sold variable annuity sales.

Thank you for your confidence in our products. We look forward to continuing to serve your investment needs.

Sincerely,

LOGO

David R. Odenath, Jr.

Chairman,

The Prudential Series Fund, Inc.

January 30, 2004


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Diversified Conservative Growth Portfolio

n	MANAGED BY: PRUDENTIAL INVESTMENT MANAGEMENT, INC.; EARNEST PARTNERS, LLC; RS INVESTMENTS; JENNISON ASSOCIATES LLC; and PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

The Diversified Conservative Growth Portfolio is a traditional conservative asset allocation of 60% fixed income and 40% U.S. bonds, broadly diversified over the bond and stock markets.

n	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
Diversified Conservative Growth Portfolio	10.05	%	21.57	%	4.66	%	5.12	%
S&P 500 Index ²	15.14	%	28.67	%	-4.05	%	-2.44	%
Diversified Conservative Growth Custom Blended Index²	8.73	%	20.26	%	4.51	%	3.99	%
Lipper (VIP) Income Funds Average²	7.32	%	16.94	%	3.81	%	3.26	%

Diversified Conservative Growth Portfolio inception date: 5/3/1999.

LOGO

The Diversified Conservative Growth Portfolio returned 21.57% in 2003, while the S&P 500 Index rose 28.67%, and a blend of indexes customized to match our asset allocation rose 20.26%. The Lipper (VIP) Income Funds Average gained 16.94%.

n	PERFORMANCE REVIEW

With signs that economic growth was accelerating, many investors became more willing to take on risk as 2003 progressed. This helped the Portfolio because its diversified structure includes allocations to several of the more volatile assets that performed so well this year.

The Portfolio is predominantly allocated to core bonds because of their relatively low volatility. Bond yields have been very low recently because of the uncertain economic climate. Moreover, economic recovery often leads to rising rates, which reduce the value of outstanding bonds. Consequently, the return of core bonds as an asset class was held down. Nonetheless, the Portfolio’s performance was considerably enhanced by the substantial outperformance of its core bonds compared to their benchmark.

Returns of the benchmarks for all of the other asset classes in the Portfolio exceeded 25%. As investors became more optimistic about the economy and about the credit situation of bond issuers, high yield bonds (“junk bonds”) became more attractive. The 20% of the Portfolio allocated to this asset class rose substantially, making a large contribution to its return. Investors’ eagerness to own more volatile assets also boosted returns of the stocks of smaller companies. They substantially outperformed those of larger firms. Although the Portfolio had a relatively small allocation to these asset classes (both growth and value small caps), they added a disproportionately large margin to its return. Holdings in the two small-cap allocations also considerably outperformed their benchmarks, but the impact was less than that of the core bond holdings because of the small allocation to small-cap stocks.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

^*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.


The Prudential Series Fund, Inc.		Annual Report		December 31, 2003

Jennison 20/20 Focus Portfolio

¨	MANAGED BY: JENNISON ASSOCIATES LLC

Accelerating profits and surging economic activity in the second half of the year drove growth stocks, and this momentum should continue in 2004. Just as the impact of declining revenues on profitability was underestimated two years ago, we are probably entering a period when profit estimates will be revised upward to reflect stronger revenue growth. For value, we remain overweighted in industrials, basic industries, and select energy stocks to benefit from positive economics that stimuli like lower short-term rates and a weaker dollar should maintain. Within financials, we have overweighted insurance and brokers, and underweighted banks and consumer finance companies.

¨	PERFORMANCE SUMMARY


Average Annual Total Return Percentages¹	Six Month		1-Year		3-Year		Since Inception
Jennison 20/20 Focus Portfolio: Class I	17.88	%	29.30	%	-0.16	%	2.46	%
S&P 500 Index²	15.14	%	28.67	%	-4.05	%	-2.44	%
Russell 1000 Index²	15.63	%	29.89	%	-3.78	%	-1.87	%
Lipper (VIP) Large-Cap Core Funds Average²	13.97	%	26.43	%	-6.02	%	-2.88	%
Lipper (VIP) Multi-Cap Core Funds Average²	15.77	%	31.49	%	-3.28	%	0.65	%

Jennison 20/20 Focus Portfolio Class I inception date. 5/3/1999. Jennison 20/20 Focus Portfolio Class II inception date 2/15/2000. Although Lipper classifies the Portfolio in the Multi-Cap Core Funds Average, the returns for the Large-Cap Core Funds Average is also shown because the management of the portfolios in the Large-Cap Core Funds Average is more consistent with the management of the Portfolio.

LOGO

The Jennison 20/20 Focus Portfolio (Class I) returned 29.30% in 2003, while the S&P 500 Index gained 28.67% and the Lipper (VIP) Multi-Cap Core Funds Average was 31.49%.

¨	PERFORMANCE REVIEW

Information technology stocks contributed significantly to the return of the growth holdings, led by our emphasis in semiconductor and semiconductor equipment stocks, including Intel and Texas Instruments. Cisco was also a notable contributor. We believe that as revenue growth accelerates, these companies should demonstrate impressive operating leverage leading to upward earnings revisions and positive earnings surprises. Healthcare stocks were among the largest contributors to growth absolute returns. Biotechnology holdings such as Amgen and Genentech advanced on the back of a stream of encouraging product developments. The Portfolio’s financial holdings performed well led by capital markets stocks such as Merrill Lynch. In the value holdings, consumer discretionary holding News Corp., an international media company, was among our top performers. News Corp. released a strong fiscal fourth-quarter earnings report and also benefited from the news that Fox Entertainment (81% owned by News Corp.) reported fiscal fourth-quarter earnings that were better than expected on the strength of high ratings and rising advertising revenue. Echostar, a top contributor to the Portfolio, performed well as investors reacted favorably to the termination of its proposed acquisition of Hughes Electronics, while gaining valuable intelligence concerning its main satellite competitor (Hughes). Echostar’s satellite network continues to add new subscribers at a rapid pace, and has enticed viewers away from cable. The weak performance of some of our healthcare stocks resulted in that sector being the only one to hurt Portfolio performance more than marginally during the period.

The Portfolio may invest in foreign securities, which are subject to the risks of currency fluctuation and the impact of social, political, and economic change.

*	Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio’s inception (Class I).

Past performance is not indicative of future returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted Portfolio performance is net of investment fees and fund expenses, but not product charges. If product charges were included, the performance quoted would be significantly lower. Six-month returns are not annualized. Source: Prudential Investments LLC and Lipper Inc.

²	For average and index definitions, refer to the Glossary of Benchmark Definitions page. Investors cannot invest directly in a market index or average.

For a complete list of holdings, refer to the Schedule of Investments section of this report.




		*DIVERSIFIED BOND PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $157,018,281 (cost $1,913,710,503)	$	1,957,217,854
Foreign currency, at value (cost $48)		61
Interest receivable		13,828,930
Receivable for investments sold		10,067,807
Unrealized appreciation on forward foreign currency contracts		239,371
Receivable for capital stock sold		85,331
Due from broker—variation margin		46,614
Prepaid expenses		15,452

Total assets		1,981,501,420

LIABILITIES
Payable for investments purchased		398,446,364
Collateral for securities on loan		162,986,302
Unrealized depreciation on forward foreign currency contracts		969,838
Management fee payable		484,958
Payable for capital stock repurchased		381,127
Accrued expenses and other liabilities		243,215
Deferred directors’ fees		8,685
Payable to custodian		5,114

Total liabilities		563,525,603

NET ASSETS	$	1,417,975,817

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,269,203
Paid-in capital in excess of par		1,387,833,536

		1,389,102,739
Undistributed net investment income		180,286
Accumulated net realized loss on investments		(13,837,873	)
Net unrealized appreciation on investments and foreign currencies		42,530,665

Net assets, December 31, 2003	$	1,417,975,817

Net asset value and redemption price per share, $1,417,975,817 / 126,920,332 outstanding shares of common stock (authorized 340,000,000 shares)	$	11.17

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest (net of $2,553 foreign withholding tax)	$	58,368,891
Dividends		4,423,759
Income from securities lending, net		266,172

		63,058,822

EXPENSES
Management fees		5,649,956
Custodian’s fees and expenses		250,000
Shareholders’ reports		212,000
Audit fee		39,000
Directors’ fees		28,000
Insurance expenses		24,000
Commitment fee on syndicated credit agreement		22,000
Legal fees and expenses		15,000
Transfer agent’s fees and expenses		2,700
Miscellaneous		5,857

Total expenses		6,248,513
Less: custodian fee credit		(13,507	)

Net expenses		6,235,006

NET INVESTMENT INCOME		56,823,816

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		39,855,396
Futures		161,118
Foreign currencies		(6,180,774	)
Short sales		153,786

		33,989,526

Net change in unrealized appreciation (depreciation) on:
Investments		13,204,831
Futures		(491,017	)
Foreign currencies		(174,518	)

		12,539,296

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		46,528,822

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	103,352,638

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	56,823,816		$	74,301,622
Net realized gain (loss) on investments and foreign currencies		33,989,526			(1,678,323	)
Net change in unrealized appreciation on investments and foreign currencies		12,539,296			23,226,659

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		103,352,638			95,849,958

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(57,232,060	)		(159,965,745	)
Tax Return of Capital		—			(1,784,789	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(57,232,060	)		(161,750,534	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [18,720,228 and 17,549,865 shares, respectively]		205,756,877			189,983,072
Capital stock issued in reinvestment of dividends and distributions [5,149,986 and 15,159,311 shares, respectively]		57,232,060			161,750,534
Capital stock repurchased [23,581,158 and 29,401,035 shares, respectively]		(261,397,152	)		(316,229,673	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		1,591,785			35,503,933

TOTAL INCREASE (DECREASE) IN NET ASSETS		47,712,363			(30,396,643	)
NET ASSETS:
Beginning of year		1,370,263,454			1,400,660,097

End of year (a)	$	1,417,975,817		$	1,370,263,454

(a) Includes undistributed net investment income of:	$	180,286

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $153,323,307)	$	169,483,023
Foreign currency, at value (cost $430,828)		442,708
Cash		23,171
Receivable for investments sold		6,600,349
Dividends and interest receivable		1,067,291
Unrealized appreciation on swaps		66,019
Premium for swaps purchased		59,018
Due from broker—variation margin		22,888
Unrealized appreciation on forward foreign currency contracts		9,056
Tax reclaim receivable		2,988
Prepaid expenses		1,749

Total assets		177,778,260

LIABILITIES
Investments sold short, at value (proceeds received $5,055,639)		5,114,438
Payable for investments purchased		2,481,664
Outstanding options written (premium received $275,482)		138,529
Accrued expenses and other liabilities		115,095
Management fee payable		106,892
Unrealized depreciation on swaps		96,702
Premium for swap written		87,503
Interest payable on securities sold short		37,458
Unrealized depreciation on forward foreign currency contracts		35,389
Payable for capital stock repurchased		7,154
Deferred trustees’ fee payable		3,898
Interest payable on swap agreements		273

Total liabilities		8,224,995

NET ASSETS	$	169,553,265

Net assets were comprised of:
Common stock, at $0.01 par value	$	159,570
Paid-in capital in excess of par		165,799,884

		165,959,454
Undistributed net investment income		5,113,671
Accumulated net realized loss on investments		(17,951,210	)
Net unrealized appreciation on investments and foreign currencies		16,431,350

Net assets, December 31, 2003	$	169,553,265

Net asset value and redemption price per share, $169,553,265 / 15,957,028 outstanding shares of common stock (authorized 140,000,000 shares)	$	10.63

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	5,386,058
Dividends (net of $5,487 foreign withholding tax)		836,312

		6,222,370

EXPENSES
Investment advisory fee		1,192,995
Custodian’s fees and expenses		291,000
Shareholders’ reports		24,000
Directors’ fees		13,000
Audit fee		11,000
Legal fees and expenses		11,000
Insurance expenses		2,900
Commitment fee on syndicated credit agreement		2,500
Transfer agent’s fees and expenses		500
Miscellaneous		7,961

Total expenses		1,556,856
Less: custodian fee credit		(423	)

Net expenses		1,556,433

NET INVESTMENT INCOME		4,665,937

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		5,231,876
Options written		61,109
Futures		754,399
Foreign currencies		(1,038,694	)
Swaps		371,303
Short sales		(451,636	)

		4,928,357

Net change in unrealized appreciation (depreciation) on:
Investments		20,593,898
Options written		130,733
Futures		(123,887	)
Foreign currencies		491,614
Swaps		360,068
Short sales		28,320

		21,480,746

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		26,409,103

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	31,075,040

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,665,937		$	6,579,408
Net realized gain (loss) on investments and foreign currencies		4,928,357			(14,063,594	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		21,480,746			(6,808,978	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		31,075,040			(14,293,164	)

DIVIDENDS:
Dividends from net investment income		(7,087,093	)		(391,218	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [419,429 and 544,055 shares, respectively]		4,040,815			5,250,779
Capital stock issued in reinvestment of dividends [802,615 and 39,358 shares, respectively]		7,087,093			391,218
Capital stock repurchased [2,386,946 and 4,099,731 shares, respectively]		(22,629,143	)		(37,946,686	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(11,501,235	)		(32,304,689	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		12,486,712			(46,989,071	)
NET ASSETS:
Beginning of year		157,066,553			204,055,624

End of year (a)	$	169,553,265		$	157,066,553

(a) Includes undistributed net investment income of:	$	5,113,671		$	7,144,708

SEE NOTES TO FINANCIAL STATEMENTS.




		*EQUITY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $414,347,398 (cost $3,917,349,414)	$	4,446,545,034
Cash		2,525
Receivable for investments sold		20,590,410
Dividends and interest receivable		3,299,746
Receivable for capital stock sold		260,493
Tax reclaim receivable		188,986
Due from broker—variation margin		47,210
Prepaid expenses		38,696

Total assets		4,470,973,100

LIABILITIES
Collateral for securities on loan		437,748,240
Payable for investments purchased		17,277,420
Management fee payable		1,492,069
Payable for capital stock repurchased		832,659
Accrued expenses and other liabilities		471,475
Distribution fee payable		164
Administration fee payable		98

Total liabilities		457,822,125

NET ASSETS	$	4,013,150,975

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,952,426
Paid-in capital in excess of par		4,411,500,758

		4,413,453,184
Undistributed net investment income		277,872
Accumulated net realized loss on investments		(930,298,374	)
Net unrealized appreciation on investments and foreign currencies		529,718,293

Net assets, December 31, 2003	$	4,013,150,975

Class I:
Net asset value and redemption price per share, $4,012,328,159 / 195,202,633 outstanding shares of common stock (authorized 590,000,000 shares)	$	20.55

Class II:
Net asset value and redemption price per share, $822,816 / 39,987 outstanding shares of common stock (authorized 10,000,000 shares)	$	20.58

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $892,454 foreign withholding tax)	$	50,239,134
Interest		181,279
Income from securities loaned, net		412,169

		50,832,582

EXPENSES
Management fee		15,723,338
Distribution fee—Class II		1,309
Administration fee—Class II		785
Shareholders’ reports		754,000
Custodian’s fees and expenses		360,000
Audit fee		102,000
Insurance expenses		63,000
Commitment fee on syndicated credit agreement		55,000
Directors’ fees		55,000
Legal fees and expenses		29,000
Transfer agent’s fees and expenses		5,200
Miscellaneous		13,351

Total operating expenses		17,161,983
Loan interest expense (Note 8)		904
Less: custodian fee credit		(808	)

Net expenses		17,162,079

NET INVESTMENT INCOME		33,670,503

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments transactions		(187,753,624	)
Options written		29,448
Futures transactions		3,946,758
Foreign currencies transactions		(109,347	)

		(183,886,765	)

Net change in unrealized appreciation (depreciation) on:
Investments		1,131,026,681
Futures		864,975
Foreign currencies		5,456

		1,131,897,112

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		948,010,347

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	981,680,850

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	33,670,503		$	34,525,958
Net realized loss on investments and foreign currencies		(183,886,765	)		(527,040,808	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		1,131,897,112			(513,826,957	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		981,680,850			(1,006,341,807	)

DIVIDENDS:
Dividends from net investment income
Class I		(34,653,868	)		(34,102,714	)
Class II		(3,532	)		(2,409	)

TOTAL DIVIDENDS		(34,657,400	)		(34,105,123	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [5,749,045 and 9,073,815 shares, respectively]		101,063,434			172,748,546
Capital stock issued in reinvestment of dividends [1,744,973 and 2,132,982 shares, respectively]		34,657,400			34,105,123
Capital stock repurchased [20,110,903 and 28,711,197 shares, respectively]		(343,584,774	)		(509,334,621	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(207,863,940	)		(302,480,952	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		739,159,510			(1,342,927,882	)
NET ASSETS:
Beginning of year		3,273,991,465			4,616,919,347

End of year (a)	$	4,013,150,975		$	3,273,991,465

(a) Includes undistributed net investment income of:	$	277,872		$	1,374,116

SEE NOTES TO FINANCIAL STATEMENTS.




		*GLOBAL PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $132,760,909 (cost $687,832,028)	$	783,198,478
Foreign currency, at value (cost $11,481,802)		11,639,591
Receivable for investments sold		14,471,078
Dividends receivable		426,802
Foreign tax reclaim receivable		163,987
Receivable for capital stock sold		138,353
Prepaid expenses		6,209
Unrealized appreciation on forward foreign currency contracts		3,487

Total assets		810,047,985

LIABILITIES
Collateral for securities on loan		139,928,992
Payable for capital stock repurchased		2,347,091
Payable for investments purchased		1,468,102
Management fee payable		411,725
Accrued expenses and other liabilities		209,799
Unrealized depreciation on forward foreign currency contracts		51,914

Total liabilities		144,417,623

NET ASSETS	$	665,630,362

Net assets were comprised of:
Common stock, at $0.01 par value	$	439,578
Paid-in capital in excess of par		836,913,043

		837,352,621
Undistributed net investment income		6,551,798
Accumulated net realized loss on investments		(273,816,814	)
Net unrealized appreciation on investments and foreign currencies		95,542,757

Net assets, December 31, 2003	$	665,630,362

Net asset value and redemption price per share, $665,630,362 / 43,957,835 outstanding shares of common stock (authorized 140,000,000 shares)	$	15.14

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $809,625 foreign withholding tax)	$	9,153,908
Interest		20,269
Income from securities loaned, net		258,514

		9,432,691

EXPENSES
Management fee		4,273,255
Custodian’s fees and expenses		405,000
Shareholders’ reports		226,000
Audit fee		16,600
Directors’ fees		15,000
Legal fees and expenses		12,000
Insurance expenses		10,000
Commitment fee on syndicated credit agreement		8,500
Transfer agent’s fees and expenses		5,000
Miscellaneous		8,916

Total operating expenses		4,980,271
Loan interest expense (Note 8)		102
Less: custodian fee credit		(760	)

Net expenses		4,979,613

NET INVESTMENT INCOME		4,453,078

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		9,562,699
Options written		3,630
Foreign currencies		2,098,668

		11,664,997

Net change in unrealized appreciation (depreciation) on:
Investments		154,678,358
Foreign currencies		(630,180	)

		154,048,178

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		165,713,175

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	170,166,253

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,453,078		$	3,125,853
Net realized gain (loss) on investments and foreign currencies		11,664,997			(148,665,932	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		154,048,178			(42,355,528	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		170,166,253			(187,895,607	)

DIVIDENDS:
Dividends from net investment income		(2,077,796	)		(7,749,158	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [17,778,589 and 23,258,154 shares, respectively]		225,317,636			299,046,535
Capital stock issued in reinvestment of dividends [184,202 and 531,857 shares, respectively]		2,077,796			7,749,158
Capital stock repurchased [19,392,533 and 36,298,511 shares, respectively]		(244,784,313	)		(481,242,136	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(17,388,881	)		(174,446,443	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		150,699,576			(370,091,208	)
NET ASSETS:
Beginning of year		514,930,786			885,021,994

End of year (a)	$	665,630,362		$	514,930,786

(a) Includes undistributed net investment income of:	$	6,551,798		$	2,077,848

SEE NOTES TO FINANCIAL STATEMENTS.




		*HIGH YIELD BOND PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $362,328,575 (cost $1,755,814,271)	$	1,817,060,516
Dividends and interest receivable		27,983,103
Receivable for investments sold		3,172,250
Receivable for capital stock sold		315,704
Prepaid expenses		13,946

Total assets		1,848,545,519

LIABILITIES
Collateral for securities on loan		377,052,545
Payable to custodian		3,708,105
Management fee payable		679,009
Payable for investments purchased		81,067
Payable for capital stock repurchased		205,190
Accrued expenses and other liabilities		126,835
Deferred director’s fee payable		5,580

Total liabilities		381,858,331

NET ASSETS	$	1,466,687,188

Net assets were comprised of:
Common stock, at $0.01 par value	$	2,772,078
Paid-in capital in excess of par		1,697,864,501

		1,700,636,579
Distributions in excess of net investment income		(872,898	)
Accumulated net realized loss on investments		(294,322,738	)
Net unrealized appreciation on investments		61,246,245

Net assets, December 31, 2003	$	1,466,687,188

Net asset value and redemption price per share, $1,466,687,188 / 277,207,828 outstanding shares of common stock (authorized 390,000,000 shares)	$	5.29

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	107,689,513
Dividends		3,818,102
Income from securities loaned, net		550,221

		112,057,836

EXPENSES
Management fee		7,095,408
Custodian’s fees and expenses		293,000
Shareholders’ reports		226,000
Audit fee		39,000
Directors’ fees		29,000
Commitment fee on syndicated credit agreement		21,000
Legal fees and expenses		20,000
Insurance expenses		18,000
Transfer agent’s fees and expenses		2,700
Miscellaneous		7,812

Total expenses		7,751,920
Less: custodian fee credit		(16,435	)

Net expenses		7,735,485

NET INVESTMENT INCOME		104,322,351

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investment transactions		6,321,957
Foreign currency transactions		(1,971	)

		6,319,986

Net change in unrealized appreciation (depreciation) on investments		179,026,505

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		185,346,491

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	289,668,842

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	104,322,351		$	86,259,823
Net realized gain (loss) on investments and foreign currencies		6,319,986			(88,210,526	)
Net change in unrealized appreciation (depreciation) on investments		179,026,505			20,001,592

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		289,668,842			18,050,889

DIVIDENDS:
Dividends from net investment income		(108,990,863	)		(158,619,952	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [36,334,558 and 118,545,049 shares, respectively]		183,598,701			585,030,412
Capital stock issued in reinvestment of dividends [21,686,510 and 33,077,604 shares, respectively]		108,990,863			158,619,952
Capital stock repurchased [26,825,205 and 27,038,135 shares, respectively]		(135,167,810	)		(130,303,535	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		157,421,754			613,346,829

TOTAL INCREASE IN NET ASSETS		338,099,733			472,777,766
NET ASSETS:
Beginning of year		1,128,587,455			655,809,689

End of year (a)	$	1,466,687,188		$	1,128,587,455

(a) Includes undistributed net investment income of:	$	—		$	2,017,478

SEE NOTES TO FINANCIAL STATEMENTS.




		*JENNISON PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $478,549,044 (cost $2,102,636,815)	$	2,356,640,173
Receivable for investments sold		14,233,472
Dividends and interest receivable		799,660
Receivable for capital stock sold		466,205
Tax reclaim receivable		105,511
Prepaid expenses		17,564

		2,372,262,585

LIABILITIES
Collateral for securities on loan		495,524,246
Payable for investments purchased		28,059,432
Management fee payable		916,164
Payable for capital stock repurchased		782,434
Accrued expenses		251,111
Distribution fee payable		15,352
Administration fee payable		9,211

		525,557,950

NET ASSETS	$	1,846,704,635

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,111,667
Paid-in capital in excess of par		2,790,560,999

		2,791,672,666
Undistributed net investment income		10,258
Accumulated net realized loss on investments		(1,198,990,021	)
Net unrealized appreciation on investments and foreign currencies		254,011,732

Net assets, December 31, 2003	$	1,846,704,635

Class I:
Net asset value and redemption price per share, $1,772,423,114 / 106,654,583 outstanding shares of common stock (authorized 240,000,000 shares)	$	16.62

Class II:
Net asset value and redemption price per share, $74,281,521 / 4,512,098 outstanding shares of common stock (authorized 20,000,000 shares)	$	16.46

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $409,917 foreign withholding tax)	$	14,390,039
Income from securities lending, net		269,538

		14,659,577

EXPENSES
Management fee		9,507,138
Distribution fee—Class II		148,306
Administration fee—Class II		88,984
Shareholders’ reports		280,000
Custodian’s fees and expenses		250,000
Audit fee		46,000
Directors’ fees		29,000
Insurance expenses		28,000
Legal fees and expenses		25,000
Commitment fee on syndicated credit agreement		22,000
Transfer agent’s fees and expenses		7,000
Miscellaneous		9,516

Total operating expenses		10,440,944
Loan interest expense (Note 8)		425
Less: custodian fee credit		(1,178	)

Net expenses		10,440,191

NET INVESTMENT INCOME		4,219,386

NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		(65,508,984	)
Options written		8,540
Foreign currencies		(148,385	)

		(65,648,829	)

Net change in unrealized appreciation on:
Investments		482,862,560
Foreign currencies		8,374

		482,870,934

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		417,222,105

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	421,441,491

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,219,386		$	3,593,063
Net realized loss on investments and foreign currencies		(65,648,829	)		(463,325,687	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		482,870,934			(224,401,947	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		421,441,491			(684,134,571	)

DIVIDENDS:
Dividends from net investment income
Class I		(4,049,114	)		(3,653,967	)
Class II		—			—

		(4,049,114	)		(3,653,967	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [16,084,536 and 32,932,385 shares, respectively]		232,921,690			527,421,601
Capital stock issued in reinvestment of dividends [248,870 and 275,676 shares, respectively]		4,049,114			3,653,967
Capital stock repurchased [17,502,721 and 41,877,345 shares, respectively]		(244,549,890	)		(652,831,245	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(7,579,086	)		(121,755,677	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		409,813,291			(809,544,215	)
NET ASSETS:
Beginning of year		1,436,891,344			2,246,435,559

End of year (a)	$	1,846,704,635		$	1,436,891,344

(a) Includes undistributed net investment income of:	$	10,258		$	—

SEE NOTES TO FINANCIAL STATEMENTS.




		*JENNISON 20/20 FOCUS PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $88,858,542)	$	104,352,733
Receivable for investments sold		1,268,012
Receivable for capital stock sold		206,656
Dividends and interest receivable		125,500
Prepaid expenses		811

Total assets		105,953,712

LIABILITIES
Payable for investments purchased		1,562,213
Payable for capital stock repurchased		75,716
Management fee payable		62,730
Accrued expenses and other liabilities		41,495
Payable to custodian		9,235
Distribution fee payable		7,502
Administration fee payable		4,501

Total liabilities		1,763,392

NET ASSETS	$	104,190,320

Net assets were comprised of:
Common stock, at $0.01 par value	$	97,832
Paid-in capital in excess of par		104,779,950

		104,877,782
Undistributed net investment income		61,682
Accumulated net realized loss on investments		(16,243,335	)
Net unrealized appreciation on investments		15,494,191

Net assets, December 31, 2003	$	104,190,320

Class I:
Net asset value and redemption price per share, $64,638,418 / 6,050,787 outstanding shares of common stock (authorized 140,000,000 shares)	$	10.68

Class II:
Net asset value and redemption price per share, $39,551,902 / 3,732,440 outstanding shares of common stock (authorized 10,000,000 shares)	$	10.60

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,220 foreign withholding tax)	$	853,958
Interest		88

		854,046

EXPENSES
Management fee		570,076
Distribution fee—Class II		44,601
Administration fee—Class II		26,761
Custodian’s fees and expenses		107,000
Directors’ fees		12,000
Audit fee		10,000
Legal fees and expenses		8,500
Shareholders’ reports		4,200
Commitment fee on syndicated credit agreement		3,200
Transfer agent’s fees and expenses		1,000
Miscellaneous		5,101

Total expenses		792,439
Loan interest expense (Note 8)		53
Less: custodian fee credit		(128	)

Net expenses		792,364

NET INVESTMENT INCOME		61,682

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		528,786
Net change in unrealized appreciation (depreciation) on investments		20,042,662

NET GAIN ON INVESTMENTS		20,571,448

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	20,633,130

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	61,682		$	127,803
Net realized gain (loss) on investments		528,786			(9,822,624	)
Net change in unrealized appreciation (depreciation) on investments		20,042,662			(10,053,888	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		20,633,130			(19,748,709	)

DIVIDENDS:
Dividends from net investment income:
Class I		(127,802	)		(15,466	)
Class II		—			—

TOTAL DIVIDENDS		(127,802	)		(15,466	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,119,135 and 1,262,079 shares, respectively]		29,245,787			11,696,564
Capital stock issued in reinvestment of dividends [15,798 and 1,519 shares, respectively]		127,802			15,466
Capital stock repurchased [1,161,738 and 1,884,866 shares, respectively]		(10,306,439	)		(17,156,007	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		19,067,150			(5,443,977	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		39,572,478			(25,208,152	)
NET ASSETS:
Beginning of year		64,617,842			89,825,994

End of year (a)	$	104,190,320		$	64,617,842

(a) Includes undistributed net investment income of:	$	61,682		$	127,802

SEE NOTES TO FINANCIAL STATEMENTS.




		*MONEY MARKET PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (amortized cost $931,002,383)	$	931,002,383
Cash		777
Receivable for capital stock sold		3,364,339
Interest receivable		1,551,718
Prepaid expenses		13,459

Total assets		935,932,676

LIABILITIES
Payable for capital stock repurchased		1,786,534
Management fee payable		320,405
Accrued expenses		174,998

Total liabilities		2,281,937

NET ASSETS	$	933,650,739

Net assets were comprised of:
Common stock, at $0.01 par value	$	933,651
Paid-in capital in excess of par		932,717,088

Net assets, December 31, 2003	$	933,650,739

Net asset value and redemption price per share, $933,650,739 / 93,365,074 outstanding shares of common stock (authorized 340,000,000 shares)	$	10.00

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	15,274,776

EXPENSES
Management fee		4,765,229
Shareholders’ reports		225,000
Custodian’s fees and expenses		122,000
Audit fee		36,000
Directors’ fees		24,000
Insurance expenses		21,000
Legal fees and expenses		14,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		4,233

Total expenses		5,216,962
Less: custodian fee credit		(522	)

Net expenses		5,216,440

NET INVESTMENT INCOME		10,058,336

NET REALIZED GAIN ON INVESTMENTS		5,631

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	10,063,967

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	10,058,336		$	19,256,001
Net realized gain on investments		5,631			17,151

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		10,063,967			19,273,152

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(10,058,336	)		(19,256,001	)
Distributions from net realized capital gains		(5,631	)		(17,151	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(10,063,967	)		(19,273,152	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [79,403,786 and 180,832,605 shares, respectively]		794,037,861			1,808,326,045
Capital stock issued in reinvestment of dividends and distributions [1,006,397 and 1,927,315 shares, respectively]		10,063,967			19,273,152
Capital stock repurchased [123,701,580 and 196,288,751 shares, respectively]		(1,237,015,795	)		(1,962,887,512	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(432,913,967	)		(135,288,315	)

TOTAL DECREASE IN NET ASSETS		(432,913,967	)		(135,288,315	)
NET ASSETS:
Beginning of year		1,366,564,706			1,501,853,021

End of year	$	933,650,739		$	1,366,564,706

SEE NOTES TO FINANCIAL STATEMENTS.




		*SMALL CAPITALIZATION STOCK PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $119,273,266 (cost $631,208,318)	$	744,692,114
Cash		69
Receivable for investments sold		1,482,085
Dividends and interest receivable		325,088
Receivable for capital stock sold		397,046
Prepaid expenses		5,623

Total assets		746,902,025

LIABILITIES
Collateral for securities on loan		125,065,395
Payable for investments purchased		1,522,702
Management fee payable		207,706
Accrued expenses and other liabilities		138,046
Due to broker—variation margin		59,200
Payable for capital stock repurchased		10,233

Total liabilities		127,003,282

NET ASSETS	$	619,898,743

Net assets were comprised of:
Common stock, at $0.01 par value	$	351,515
Paid-in capital in excess of par		507,296,498

		507,648,013
Undistributed net investment income		49,770
Accumulated net realized loss on investments		(1,427,311	)
Net unrealized appreciation on investments		113,628,271

Net assets, December 31, 2003	$	619,898,743

Net asset value and redemption price per share, $619,898,743 / 35,151,505 outstanding shares of common stock (authorized 140,000,000 shares)	$	17.64

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,358 foreign withholding tax)	$	4,529,324
Interest		16,696
Income from securities lending, net		279,773

		4,825,793

EXPENSES
Management fee		2,038,923
Custodian’s fees and expenses		186,000
Shareholders’ reports		98,000
Audit fee		20,000
Directors’ fees		15,000
Legal fees and expenses		11,000
Insurance expenses		9,000
Commitment fee on syndicated credit agreement		3,000
Transfer agent’s fees and expenses		2,000
Miscellaneous		60,590

Total operating expenses		2,443,513
Loan interest expense (Note 8)		435
Less: custodian fee credit		(415	)

Net expenses		2,443,533

NET INVESTMENT INCOME		2,382,260

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		4,093,976
Futures		1,960,522

		6,054,498

Net change in unrealized appreciation (depreciation) on:
Investments		160,967,395
Futures		210,900

		161,178,295

NET GAIN ON INVESTMENTS		167,232,793

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	169,615,053

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,382,260		$	2,197,258
Net realized gain (loss) on investments		6,054,498			(937,359	)
Net change in unrealized appreciation (depreciation) on investments		161,178,295			(85,289,453	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		169,615,053			(84,029,554	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,476,478	)		(5,036,768	)
Distributions from net realized capital gains		(3,294,388	)		(7,580,347	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(5,770,866	)		(12,617,115	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,617,854 and 4,689,935 shares, respectively]		55,220,782			71,063,726
Capital stock issued in reinvestment of dividends and distributions [416,271 and 792,808 shares, respectively]		5,770,866			12,617,115
Capital stock repurchased [5,077,773 and 8,760,368 shares, respectively]		(72,352,327	)		(130,711,777	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(11,360,679	)		(47,030,936	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		152,483,508			(143,677,605	)
NET ASSETS:
Beginning of year		467,415,235			611,092,840

End of year (a)	$	619,898,743		$	467,415,235

(a) Includes undistributed net investment income of:	$	49,770		$	143,988

SEE NOTES TO FINANCIAL STATEMENTS.




		*SP AGGRESSIVE GROWTH ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $52,803,227)	$	60,591,982
Receivable for capital stock sold		62,462

Total assets		60,654,444

LIABILITIES
Payable for investments purchased		60,290
Payable for capital stock repurchased		2,165
Management fee payable		3,228

Total liabilities		65,683

NET ASSETS	$	60,588,761

Net assets were comprised of:
Common stock, at $0.01 par value	$	77,395
Paid-in capital in excess of par		54,731,440

		54,808,835
Undistributed net investment income		47,387
Accumulated net realized loss on investments		(2,056,216	)
Net unrealized appreciation on investments		7,788,755

Net assets, December 31, 2003	$	60,588,761

Net asset value and redemption price per share, $60,588,761 / 7,739,498 outstanding shares of common stock (authorized 80,000,000 shares)	$	7.83

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	61,907

EXPENSES
Management fee		14,520

NET INVESTMENT INCOME		47,387

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(794,845	)
Net change in unrealized appreciation on investments		10,099,333

NET GAIN ON INVESTMENTS		9,304,488

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	9,351,875

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	47,387		$	7,077
Net realized loss on investments		(794,845	)		(849,967	)
Net change in unrealized appreciation (depreciation) on investments		10,099,333			(2,092,540	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		9,351,875			(2,935,430	)

DIVIDENDS:
Dividends from net investment income		(7,077	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [6,301,640 and 2,019,417 shares, respectively]		43,779,270			13,422,696
Capital stock issued in reinvestment of dividends [1,239 and 0 shares, respectively]		7,077			—
Capital stock repurchased [1,117,894 and 450,554 shares, respectively]		(7,614,148	)		(2,886,647	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		36,172,199			10,536,049

TOTAL INCREASE IN NET ASSETS		45,516,997			7,600,619
NET ASSETS:
Beginning of year		15,071,764			7,471,145

End of year (a)	$	60,588,761		$	15,071,764

(a) Includes undistributed net investment income of:	$	47,387		$	7,077

SEE NOTES TO FINANCIAL STATEMENTS.

A10




		*SP ALLIANCE TECHNOLOGY PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $17,591,683)	$	20,437,780
Foreign currency, at value (cost: $21,128)		21,758
Receivable for capital stock sold		58,712
Due from manager		8,251
Dividends and interest receivable		3,789
Prepaid expenses		114

Total assets		20,530,404

LIABILITIES
Payable for investments purchased		406,753
Payable for capital stock repurchased		61,760
Accrued expenses and other liabilities		44,594
Deferred directors’ fees		2,323

Total liabilities		515,430

NET ASSETS	$	20,014,974

Net assets were comprised of:
Common stock, at $0.01 par value	$	41,929
Paid-in capital in excess of par		22,528,285

		22,570,214
Accumulated net realized loss on investments		(5,401,800	)
Net unrealized appreciation on investments and foreign currencies		2,846,560

Net assets, December 31, 2003	$	20,014,974

Net asset value and redemption price per share, $20,014,974 / 4,192,925 outstanding shares of common stock (authorized 80,000,000 shares)	$	4.77

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,453 foreign withholding tax)	$	25,149
Interest		3,571

		28,720

EXPENSES
Management fee		133,443
Custodian’s fees and expenses		96,000
Shareholders’ reports		27,000
Legal fees		12,000
Audit fee		11,000
Directors’ fees		11,000
Transfer agent’s fees and expenses		3,500
Commitment fee on syndicated credit agreement		300
Miscellaneous		3,219

Total operating expenses		297,462
Less: custodian fee credit		(29	)
expense subsidy		(146,595	)

Net expenses		150,838

NET INVESTMENT LOSS		(122,118	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		48,748
Foreign currencies		190

		48,938

Net change in unrealized appreciation on:
Investments		3,936,782
Foreign currencies		463

		3,937,245

NET GAIN ON INVESTMENTS		3,986,183

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,864,065

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(122,118	)	$	(76,775	)
Net realized gain (loss) on investments and foreign currencies		48,938			(3,617,853	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		3,937,245			(234,972	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,864,065			(3,929,600	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,893,739 and 1,629,439 shares, respectively]		16,576,777			6,907,662
Capital stock repurchased [1,654,394 and 1,020,070 shares, respectively]		(6,966,079	)		(4,111,161	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		9,610,698			2,796,501

TOTAL INCREASE (DECREASE) IN NET ASSETS		13,474,763			(1,133,099	)
NET ASSETS:
Beginning of year		6,540,211			7,673,310

End of year	$	20,014,974		$	6,540,211

SEE NOTES TO FINANCIAL STATEMENTS.

A11




		*SP BALANCED ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $408,622,120)	$	449,948,440
Receivable for capital stock sold		537,291
Due from manager		7,473

Total assets		450,493,204

LIABILITIES
Payable for investments purchased		526,512
Payable for capital stock repurchased		10,779

Total liabilities		537,291

NET ASSETS	$	449,955,913

Net assets were comprised of:
Common stock, at $0.01 par value	$	465,676
Paid-in capital in excess of par		407,809,047

		408,274,723
Undistributed net investment income		4,764,898
Accumulated net realized loss on investments		(4,410,028	)
Net unrealized appreciation on investments		41,326,320

Net assets, December 31, 2003	$	449,955,913

Net asset value and redemption price per share, $449,955,913 / 46,567,565 outstanding shares of common stock (authorized 80,000,000 shares)	$	9.66

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	4,895,140

EXPENSES
Management fee		130,242

NET INVESTMENT INCOME		4,764,898

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(825,056	)
Net change in unrealized appreciation on investments		53,400,233

NET GAIN ON INVESTMENTS		52,575,177

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	57,340,075

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,764,898		$	2,105,869
Net realized loss on investments		(825,056	)		(2,970,224	)
Net change in unrealized appreciation (depreciation) on investments		53,400,233			(11,808,821	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		57,340,075			(12,673,176	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,105,869	)		—
Distributions from net realized capital gains		—			(83,279	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(2,105,869	)		(83,279	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [30,930,294 and 13,355,238 shares, respectively]		272,487,635			111,712,735
Capital stock issued in reinvestment of dividends and distributions [267,922 and 9,326 shares, respectively]		2,105,869			83,279
Capital stock repurchased [3,147,944 and 2,181,930 shares, respectively]		(27,212,619	)		(17,832,174	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		247,380,885			93,963,840

TOTAL INCREASE IN NET ASSETS		302,615,091			81,207,385
NET ASSETS:
Beginning of year		147,340,822			66,133,437

End of year (a)	$	449,955,913		$	147,340,822

(a) Includes undistributed net investment income of:	$	4,764,898		$	2,105,869

SEE NOTES TO FINANCIAL STATEMENTS.

A12




		*SP CONSERVATIVE ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $261,465,311)	$	281,222,116
Receivable for capital stock sold		378,495

Total assets		281,600,611

LIABILITIES
Payable for investments purchased		353,721
Payable for capital stock repurchased		24,766
Management fee payable		12,519

Total liabilities		391,006

NET ASSETS	$	281,209,605

Net assets were comprised of:
Common stock, at $0.01 par value	$	268,227
Paid-in capital in excess of par		258,458,874

		258,727,101
Undistributed net investment income		4,871,869
Accumulated net realized loss on investments		(2,146,170	)
Net unrealized appreciation on investments		19,756,805

Net assets, December 31, 2003	$	281,209,605

Net asset value and redemption price per share, $281,209,605 / 26,822,730 outstanding shares of common stock (authorized 80,000,000 shares)	$	10.48

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	4,965,562

EXPENSES
Management fee		93,693

NET INVESTMENT INCOME		4,871,869

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		4,191
Net change in unrealized appreciation on investments		24,067,294

NET GAIN ON INVESTMENTS		24,071,485

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	28,943,354

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,871,869		$	2,222,861
Net realized gain (loss) on investments		4,191			(1,747,549	)
Net change in unrealized appreciation (depreciation) on investments		24,067,294			(4,357,935	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		28,943,354			(3,882,623	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(2,222,861	)		(217,498	)
Distributions from net realized capital gains		(264,006	)		(51,167	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(2,486,867	)		(268,665	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [16,487,104 and 9,791,487 shares, respectively]		161,815,520			90,835,888
Capital stock issued in reinvestment of dividends and distributions [272,384 and 27,669 shares, respectively]		2,486,867			268,665
Capital stock repurchased [2,766,434 and 1,893,646 shares, respectively]		(27,085,414	)		(17,352,023	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		137,216,973			73,752,530

TOTAL INCREASE IN NET ASSETS		163,673,460			69,601,242
NET ASSETS:
Beginning of year		117,536,145			47,934,903

End of year (a)	$	281,209,605		$	117,536,145

(a) Includes undistributed net investment income of:	$	4,871,869		$	2,222,861

SEE NOTES TO FINANCIAL STATEMENTS.

A13




		*SP GROWTH ASSET ALLOCATION PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $288,586,598)	$	326,719,708
Receivable for capital stock sold		1,526,804

Total assets		328,246,512

LIABILITIES
Payable for investments purchased		1,517,974
Management fee payable		12,861
Payable for capital stock repurchased		8,882
Deferred directors’ fees		1,044

Total liabilities		1,540,761

NET ASSETS	$	326,705,751

Net assets were comprised of:
Common stock, at $0.01 par value	$	375,246
Paid-in capital in excess of par		293,965,174

		294,340,420
Undistributed net investment income		1,930,590
Accumulated net realized loss on investments		(7,698,369	)
Net unrealized appreciation on investments		38,133,110

Net assets, December 31, 2003	$	326,705,751

Net asset value and redemption price per share, $326,705,751 / 37,524,562 outstanding shares of common stock (authorized 80,000,000 shares)	$	8.71

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	2,018,604

EXPENSES
Management fee		88,014

NET INVESTMENT INCOME		1,930,590

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(3,529,031	)
Net change in unrealized appreciation (depreciation) on investments		49,477,044

NET GAIN ON INVESTMENTS		45,948,013

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	47,878,603

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,930,590		$	797,294
Net realized loss on investments		(3,529,031	)		(3,335,015	)
Net change in unrealized appreciation (depreciation) on investments		49,477,044			(10,816,731	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		47,878,603			(13,354,452	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(797,294	)		—
Distributions from net realized capital gains		—			(21,973	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(797,294	)		(21,973	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [26,204,344 and 10,864,143 shares, respectively]		204,273,702			80,672,788
Capital stock issued in reinvestment of dividends and distributions [118,999 and 2,706 shares, respectively]		797,294			21,973
Capital stock repurchased [2,895,071 and 2,431,952 shares, respectively]		(21,817,431	)		(17,783,588	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		183,253,565			62,911,173

TOTAL INCREASE IN NET ASSETS		230,334,874			49,534,748
NET ASSETS:
Beginning of year		96,370,877			46,836,129

End of year (a)	$	326,705,751		$	96,370,877

(a) Includes undistributed net investment income of:	$	1,930,590		$	797,294

SEE NOTES TO FINANCIAL STATEMENTS.

A14




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, excluding repurchase agreement, at value (cost $28,116,293)	$	32,324,784
Repurchase agreement (cost $5,892,599)		5,892,599
Receivable for investments sold		264,910
Receivable for capital stock sold		16,082
Dividends and interest receivable		2,263
Prepaid expenses		212

Total assets		38,500,850

LIABILITIES
Payable for investments purchased		2,366,740
Payable for capital stock repurchased		1,057,003
Accrued expenses and other liabilities		46,778
Management fee payable		8,888
Deferred directors’ fees		2,325

Total liabilities		3,481,734

NET ASSETS	$	35,019,116

Net assets were comprised of:
Common stock, at $0.01 par value	$	53,700
Paid-in capital in excess of par		34,051,601

		34,105,301
Accumulated net realized loss on investments		(3,294,676	)
Net unrealized appreciation on investments		4,208,491

Net assets, December 31, 2003	$	35,019,116

Net asset value and redemption price per share, $35,019,116 / 5,369,957 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.52

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT LOSS
Dividends (net of $22 foreign withholding tax)	$	73,907
Interest		13,909

		87,816

EXPENSES
Management fee		195,610
Custodian’s fees and expenses		101,000
Shareholders’ reports		28,000
Audit fee		10,000
Legal fees and expenses		10,000
Directors’ fees		8,900
Transfer agent’s fees and expenses		3,800
Miscellaneous		9,323

Total operating expenses		366,633
Less: custodian fee credit		(85	)
expense subsidy		(129,823	)

Net expenses		236,725

NET INVESTMENT LOSS		(148,909	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		1,826,903
Option written		2,927

		1,829,830

Net change in unrealized appreciation (depreciation) on investments		4,451,430

NET GAIN ON INVESTMENTS		6,281,260

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,132,351

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(148,909	)	$	(78,008	)
Net realized gain (loss) on investments		1,829,830			(2,895,182	)
Net change in unrealized appreciation (depreciation) on investments		4,451,430			(713,148	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		6,132,351			(3,686,338	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [6,256,852 and 3,910,333 shares, respectively]		37,240,835			20,588,172
Capital stock repurchased [3,473,309 and 2,539,505 shares, respectively]		(20,867,128	)		(12,819,425	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		16,373,707			7,768,747

TOTAL INCREASE IN NET ASSETS		22,506,058			4,082,409
NET ASSETS:
Beginning of year		12,513,058			8,430,649

End of year	$	35,019,116		$	12,513,058

SEE NOTES TO FINANCIAL STATEMENTS.

A15




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $14,109,729 (cost $192,054,825)	$	228,107,695
Foreign currency, at value (cost $4,645,700)		4,936,866
Receivable for investments sold		754,442
Receivable for capital stock sold		666,999
Dividends and interest receivable		196,072
Tax reclaim receivable		52,410
Prepaid expenses		1,064

Total assets		234,715,548

LIABILITIES
Collateral for securities on loan		14,887,349
Management fee payable		143,346
Payable for capital stock repurchased		328,641
Accrued expenses and other liabilities		54,171
Distribution fee payable		21,281
Administration fee payable		12,768

Total liabilities		15,447,556

NET ASSETS	$	219,267,992

Net assets were comprised of:
Common stock, at $0.01 par value	$	374,500
Paid-in capital, in excess of par		192,635,533

		193,010,033
Undistributed net investment income		268,170
Accumulated net realized loss on investments		(10,366,577	)
Net unrealized appreciation on investments and foreign currencies		36,356,366

Net assets, December 31, 2003	$	219,267,992

Class I:
Net asset value and redemption price per share, $105,621,382 / 17,940,209 outstanding shares of common stock (authorized 80,000,000 shares)	$	5.89

Class II:
Net asset value and redemption price per share, $113,646,610 / 19,509,795 outstanding shares of common stock (authorized 20,000,000 shares)	$	5.83

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $174,772 foreign withholding tax)	$	1,736,690
Interest		76
Income from securities lending, net		55,624

		1,792,390

EXPENSES
Management fee		922,491
Distribution fee—Class II		123,872
Administration fee—Class II		74,323
Custodian’s fees and expenses		245,000
Shareholders’ reports		36,000
Audit fee		13,000
Directors’ fees		9,200
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		6,000
Commitment fee on syndicated credit agreement		1,100
Miscellaneous		6,315

Total operating expenses		1,444,801
Loan interest expense (Note 8)		104
Less: custodian fee credit		(114	)

Net expenses		1,444,791

NET INVESTMENT INCOME		347,599

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		3,714,039
Foreign currencies		(63,601	)

		3,650,438

Net change in unrealized appreciation on:
Investments		38,866,246
Foreign currencies		289,663

		39,155,909

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		42,806,347

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	43,153,946

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	347,599		$	51,374
Net realized gain (loss) on investments and foreign currencies		3,650,438			(8,490,927	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		39,155,909			(1,460,580	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		43,153,946			(9,900,133	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [67,706,358 and 97,962,690 shares, respectively]		323,300,178			459,630,004
Capital stock repurchased [44,166,056 and 90,447,644 shares, respectively]		(205,761,119	)		(425,966,534	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		117,539,059			33,663,470

TOTAL INCREASE IN NET ASSETS		160,693,005			23,763,337
NET ASSETS:
Beginning of year		58,574,987			34,811,650

End of year (a)	$	219,267,992		$	58,574,987

(a) Includes undistributed net investment income of:	$	268,170		$	—

SEE NOTES TO FINANCIAL STATEMENTS.

A16




		*SP LARGE CAP VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $64,687,042)	$	73,207,212
Receivable for investments sold		226,761
Receivable for capital stock sold		139,479
Dividends and interest receivable		81,900
Prepaid expenses		548
Foreign tax reclaim receivable		20

Total assets		73,655,920

LIABILITIES
Payable for investments purchased		643,142
Accrued expenses and other liabilities		74,611
Management fee payable		36,424
Payable for capital stock repurchased		16,701
Deferred directors’ fees		2,362

Total liabilities		773,240

NET ASSETS	$	72,882,680

Net assets were comprised of:
Common stock, at $0.01 par value	$	73,637
Paid-in capital in excess of par		66,528,099

		66,601,736
Undistributed net investment income		674,049
Accumulated net realized loss on investments		(2,913,275	)
Net unrealized appreciation on investments		8,520,170

Net assets, December 31, 2003	$	72,882,680

Net asset value and redemption price per share, $72,882,680 / 7,363,662 outstanding shares of common stock (authorized 80,000,000 shares)	$	9.90

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $1,220 foreign withholding tax)	$	1,129,365
Interest		4,612

		1,133,977

EXPENSES
Management fee		409,060
Custodian’s fees and expenses		102,000
Shareholders’ reports		20,000
Audit fee		10,000
Directors’ fees		9,500
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		3,800
Commitment fee on syndicated credit agreement		800
Miscellaneous		6,129

Total expenses		568,789
Loan interest expense (Note 8)		15
Less: custodian fee credit		(299	)
expense subsidy		(108,577	)

Net expenses		459,928

NET INVESTMENT INCOME		674,049

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments		(194,061	)
Net change in unrealized appreciation (depreciation) on investments		12,923,618

NET GAIN ON INVESTMENTS		12,729,557

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	13,403,606

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	674,049		$	403,367
Net realized loss on investments		(194,061	)		(2,058,199	)
Net change in unrealized appreciation (depreciation) on investments		12,923,618			(4,609,724	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		13,403,606			(6,264,556	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		—			(403,360	)
Tax return of capital distributions		—			(6,059	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		—			(409,419	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [4,233,763 and 3,406,672 shares, respectively]		36,308,863			29,950,399
Capital stock issued in reinvestment of dividends and distributions [0 and 52,288 shares, respectively]		—			409,419
Capital stock repurchased [1,778,946 and 1,063,583 shares, respectively]		(15,149,223	)		(9,099,948	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		21,159,640			21,259,870

TOTAL INCREASE IN NET ASSETS		34,563,246			14,585,895
NET ASSETS:
Beginning of year		38,319,434			23,733,539

End of year(a)	$	72,882,680		$	38,319,434

(a) Includes undistributed net investment income of:	$	674,049		$	—

SEE NOTES TO FINANCIAL STATEMENTS.

A17




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $17,968,434)	$	20,392,645
Receivable for investments sold		83,813
Receivable for capital stock sold		25,846
Dividends and interest receivable		25,799
Due from manager		13,666
Prepaid expenses		135
Tax reclaim receivable		20

Total assets		20,541,924

LIABILITIES
Payable for investments purchased		171,897
Accrued expenses and other liabilities		48,892
Deferred directors’ fees		2,325
Payable for capital stock repurchased		1,421

Total liabilities		224,535

NET ASSETS	$	20,317,389

Net assets were comprised of:
Common stock, at $0.01 par value	$	32,120
Paid-in capital in excess of par		21,867,474

		21,899,594
Undistributed net investment income		43,844
Accumulated net realized loss on investments		(4,050,260	)
Net unrealized appreciation on investments and foreign currencies		2,424,211

Net assets, December 31, 2003	$	20,317,389

Net asset value and redemption price per share, $20,317,389 / 3,212,045 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.33

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $308 foreign withholding tax)	$	170,530
Interest		3,999

		174,529

EXPENSES
Management fee		97,980
Custodian’s fees and expenses		100,000
Shareholders’ reports		26,000
Audit fee		11,000
Legal fees and expenses		10,000
Directors’ fees		9,000
Transfer agent’s fees and expenses		3,400
Commitment fee on syndicated credit agreement		200
Miscellaneous		6,812

Total expenses		264,392
Less: expense subsidy		(133,734	)
custodian fee credit		(29	)

Net expenses		130,629

NET INVESTMENT INCOME		43,900

NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		699,619
Foreign currencies		(56	)

		699,563

Net change in unrealized appreciation (depreciation) on:
Investments		2,517,316
Foreign currencies		(31	)

		2,517,285

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		3,216,848

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,260,748

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income	$	43,900		$	14,846
Net realized gain (loss) on investments and foreign currencies		699,563			(3,082,433	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		2,517,285			(37,213	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		3,260,748			(3,104,800	)

DIVIDENDS:
Dividends from net investment income		(14,769	)		—

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [1,965,303 and 2,421,976 shares, respectively]		11,160,163			13,214,957
Capital stock issued in reinvestment of dividends [3,026 and 0 shares, respectively]		14,769			—
Capital stock repurchased [625,563 and 1,723,512 shares, respectively]		(3,444,184	)		(8,971,624	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		7,730,748			4,243,333

TOTAL INCREASE IN NET ASSETS		10,976,727			1,138,533
NET ASSETS:
Beginning of year		9,340,662			8,202,129

End of year (a)	$	20,317,389		$	9,340,662

(a) Includes undistributed net investment income of:	$	43,844		$	14,769

SEE NOTES TO FINANCIAL STATEMENTS.

A18




		*SP MID-CAP GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $50,378,753)	$	60,232,726
Receivable for capital stock sold		139,006
Dividends and interest receivable		6,599
Prepaid expenses		338

Total assets		60,378,669

LIABILITIES
Payable for investments purchased		1,029,693
Payable for capital stock repurchased		375,094
Management fee payable		38,248
Accrued expenses and other liabilities		25,605
Deferred directors’ fees		2,352

Total liabilities		1,470,992

NET ASSETS	$	58,907,677

Net assets were comprised of:
Common stock, at $0.01 par value	$	102,863
Paid-in capital in excess of par		59,603,618

		59,706,481
Accumulated net realized loss on investments and foreign currencies		(10,652,777	)
Net unrealized appreciation on investments and foreign currencies		9,853,973

Net assets, December 31, 2003	$	58,907,677

Net asset value and redemption price per share, $58,907,677 / 10,286,269 outstanding shares of common stock (authorized 80,000,000 shares)	$	5.73

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	80,476
Interest		9,973

		90,449

EXPENSES
Management fee		266,823
Custodian’s fees and expenses		93,000
Shareholders’ reports		45,000
Audit fee		12,000
Directors’ fees		11,000
Miscellaneous		7,290
Legal fees and expenses		7,500
Transfer agent’s fees and expenses		4,300

Total expenses		446,913
Less: custodian fee credit		(89	)
expense subsidy		(113,366	)

Net expenses		333,458

NET INVESTMENT LOSS		(243,009	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		998,871
Foreign currencies		49

		998,920

Net change in unrealized appreciation (depreciation) on:
Investments		10,267,536
Foreign currencies		(48	)

		10,267,488

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		11,266,408

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	11,023,399

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(243,009	)	$	(97,107	)
Net realized gain (loss) on investments and foreign currencies		998,920			(11,106,894	)
Net change in unrealized appreciation on investments and foreign currencies		10,267,488			805,662

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		11,023,399			(10,398,339	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [8,725,545 and 4,993,128 shares, respectively]		44,431,608			24,806,716
Capital stock repurchased [2,903,968 and 2,612,747 shares, respectively]		(14,817,541	)		(12,027,142	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		29,614,067			12,779,574

TOTAL INCREASE IN NET ASSETS		40,637,466			2,381,235
NET ASSETS:
Beginning of year		18,270,211			15,888,976

End of year	$	58,907,677		$	18,270,211

SEE NOTES TO FINANCIAL STATEMENTS.

A19




		*SP PIMCO TOTAL RETURN PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $829,032,368)	$	836,158,058
Foreign currency, at value (cost $4,607,988)		4,751,479
Receivable for investments sold		180,021,878
Dividends and interest receivable		4,284,409
Unrealized appreciation on swaps		1,744,784
Premium for swaps purchased		1,495,592
Receivable for capital stock sold		1,031,748
Interest receivable on swap agreement		603,113
Due from broker—variation margin		511,232
Unrealized appreciation on forward foreign currency contracts		124,807
Prepaid expenses		7,235

Total assets		1,030,734,335

LIABILITIES
Investments sold short, at value (proceeds received $162,401,247)		163,708,543
Payable for investments purchased		16,911,383
Outstanding options written (premium received $4,862,208)		3,756,170
Unrealized depreciation on forward foreign currency contracts		2,026,714
Unrealized depreciation on swaps		1,842,229
Premium for written swaps		1,502,925
Interest payable on investments sold short		663,807
Interest payable on swap agreements		523,572
Management fee payable		414,701
Payable for capital stock repurchased		206,851
Accrued expenses		47,381
Deferred directors’ fees		2,828
Payable to custodian		2,659

Total liabilities		191,609,763

NET ASSETS	$	839,124,572

Net assets were comprised of:
Common stock, at $0.01 par value	$	727,345
Paid-in capital in excess of par		812,529,097

		813,256,442
Undistributed net investment income		3,547,759
Accumulated net realized gain on investments		12,648,454
Net unrealized appreciation on investments and foreign currencies		9,671,917

Net assets, December 31, 2003	$	839,124,572

Net asset value and redemption price per share, $839,124,572 / 72,734,474 outstanding shares of common stock (authorized 80,000,000 shares)	$	11.54

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Interest	$	19,007,325
Dividends		8,545

		19,015,870

EXPENSES
Management fee		4,008,826
Custodian’s fees and expenses		217,000
Shareholders’ reports		46,000
Audit fee		22,000
Directors’ fees		18,000
Commitment fee on syndicated credit agreement		16,000
Legal fees and expenses		13,000
Insurance expenses		7,300
Transfer agent’s fees and expenses		4,800
Miscellaneous		4,209

Total expenses		4,357,135
Less: custodian fee credit		(4,032	)

Net expenses		4,353,103

NET INVESTMENT INCOME		14,662,767

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		16,134,272
Options written		642,917
Futures		8,717,500
Foreign currencies		(5,988,412	)
Swaps		3,411,986
Short sales		(3,740,573	)

		19,177,690

Net change in unrealized appreciation (depreciation) on:
Investments		(2,651,610	)
Options written		1,369,940
Futures		2,083,851
Foreign currencies		114,724
Swaps		2,129,290
Short sales		(913,582	)

		2,132,613

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		21,310,303

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	35,973,070

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	14,662,767		$	8,880,764
Net realized gain on investments and foreign currencies		19,177,690			12,280,351
Net change in unrealized appreciation on investments and foreign currencies		2,132,613			7,837,234

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		35,973,070			28,998,349

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(16,698,108	)		(8,915,477	)
Distributions from net realized capital gains		(12,318,942	)		(7,146	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(29,017,050	)		(8,922,623	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [40,628,530 and 30,861,573 shares, respectively]		466,437,561			340,380,452
Capital stock issued in reinvestment of dividends and distributions [2,550,340 and 802,991 shares, respectively]		29,017,050			8,922,623
Capital stock repurchased [11,794,598 and 4,044,791 shares, respectively]		(134,952,839	)		(44,686,394	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		360,501,772			304,616,681

TOTAL INCREASE IN NET ASSETS		367,457,792			324,692,407
NET ASSETS:
Beginning of year		471,666,780			146,974,373

End of year (a)	$	839,124,572		$	471,666,780

(a) Includes undistributed net investment income of:	$	3,547,759		$	1,837,788

SEE NOTES TO FINANCIAL STATEMENTS.

A20




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $154,201,729)	$	169,336,869
Receivable for investments sold		3,194,168
Receivable for capital stock sold		472,356
Dividends and interest receivable		44,765
Prepaid expenses		994
Tax Reclaim Receivable		744

Total assets		173,049,896

LIABILITIES
Payable for investments purchased		2,490,080
Payable for capital stock repurchased		85,250
Management fee payable		81,897
Accrued expenses and other liabilities		51,516
Distribution fee payable		72
Administration fee payable		43

Total liabilities		2,708,858

NET ASSETS	$	170,341,038

Net assets were comprised of:
Common stock, at $0.01 par value	$	256,283
Paid-in capital in excess of par		155,413,306

		155,669,589
Accumulated net realized loss on investments		(463,814	)
Net unrealized appreciation on investments and foreign currency		15,135,263

Net assets, December 31, 2003	$	170,341,038

Class I:
Net asset value and redemption price per share, $169,996,700 / 25,575,928 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.65

Class II:
Net asset value and redemption price per share, $344,338 / 52,307 outstanding shares of common stock (authorized 20,000,000 shares)	$	6.58

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT LOSS
Dividends (net of $2,420 foreign withholding tax)	$	219,609

EXPENSES
Management fee		575,081
Distribution fee—Class II		732
Administration fee—Class II		439
Custodian’s fees and expenses		100,000
Shareholders’ reports		40,000
Directors’ fees		12,000
Audit fee		11,000
Legal fees and expenses		8,000
Transfer agent’s fees and expenses		4,500
Commitment fee on syndicated credit agreement		1,800
Miscellaneous		6,225

Total operating expenses		759,777
Less: custodian fee credit		(117	)

Net expenses		759,660

NET INVESTMENT LOSS		(540,051	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) on:
Investments		15,684,600
Foreign currencies		474
Options written		(21,230	)

		15,663,844

Net change in unrealized appreciation (depreciation) on:
Investments		15,314,837
Foreign currencies		123

		15,314,960

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		30,978,804

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	30,438,753

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(540,051	)	$	(201,427	)
Net realized gain (loss) on investments and foreign currencies		15,663,844			(12,814,981	)
Net change in unrealized appreciation (depreciation) on investments and foreign currencies		15,314,960			(1,640,738	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		30,438,753			(14,657,146	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [19,310,787 and 8,274,153 shares, respectively]		114,911,354			43,940,152
Capital stock repurchased [4,638,713 and 1,871,780 shares, respectively]		(26,241,240	)		(9,411,936	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		88,670,114			34,528,216

TOTAL INCREASE IN NET ASSETS		119,108,867			19,871,070
NET ASSETS:
Beginning of year		51,232,171			31,361,101

End of year	$	170,341,038		$	51,232,171

SEE NOTES TO FINANCIAL STATEMENTS.

A21




		*SP SMALL/MID CAP VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $216,101,802)	$	251,967,481
Cash		2,340,668
Receivable for investments sold		828,214
Receivable for capital stock sold		628,522
Dividends and interest receivable		226,409
Prepaid expenses		1,579

Total assets		255,992,873

LIABILITIES
Payable for investments purchased		5,163,495
Management fee payable		180,372
Accrued expenses and other liabilities		52,014
Payable for capital stock repurchased		19,312
Deferred directors’ fees		2,581

Total liabilities		5,417,774

NET ASSETS	$	250,575,099

Net assets were comprised of:
Common stock, at $0.01 par value	$	194,558
Paid-in capital in excess of par		214,040,695

		214,235,253
Undistributed net investment income		553,326
Accumulated net realized loss on investments		(79,159	)
Net unrealized appreciation on investments		35,865,679

Net assets, December 31, 2003	$	250,575,099

Class I:
Net asset value and redemption price per share, $250,575,099 / 19,455,827 outstanding shares of common stock (authorized 80,000,000 shares)	$	12.88

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $4,956 foreign withholding tax)	$	2,091,056
Interest		31,058

		2,122,114

EXPENSES
Management fee		1,354,612
Custodian’s fees and expenses		117,000
Shareholders’ reports		47,000
Directors’ fees		13,000
Audit fee		12,000
Legal fees and expenses		11,000
Transfer agent’s fees and expenses		4,500
Commitment fee on syndicated credit agreement		2,300
Miscellaneous		8,911

Total expenses		1,570,323
Less: custodian fee credit		(1,491	)

Net expenses		1,568,832

NET INVESTMENT INCOME		553,282

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain on:
Investments		5,661,583
Foreign currencies		44

		5,661,627

Net change in unrealized appreciation (depreciation) on investments		43,300,041

NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES		48,961,668

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	49,514,950

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	553,282		$	534,192
Net realized gain (loss) on investments and foreign currencies		5,661,627			(5,223,511	)
Net change in unrealized appreciation (depreciation) on investments		43,300,041			(9,950,567	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		49,514,950			(14,639,886	)

DIVIDENDS:
Dividends from net investment income		(37,628	)		(463,177	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [12,296,185 and 7,737,279 shares, respectively]		135,021,387			84,398,594
Capital stock issued in reinvestment of dividends [4,099 and 47,701 shares, respectively]		37,628			463,177
Capital stock repurchased [3,095,968 and 1,709,203 shares, respectively]		(33,154,796	)		(18,014,772	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		101,904,219			66,846,999

TOTAL INCREASE IN NET ASSETS		151,381,541			51,743,936
NET ASSETS:
Beginning of year		99,193,558			47,449,622

End of year (a)	$	250,575,099		$	99,193,558

(a) Includes undistributed net investment income of:	$	553,326		$	37,628

SEE NOTES TO FINANCIAL STATEMENTS.

A22




		*SP STRATEGIC PARTNERS FOCUSED GROWTH PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value (cost $31,632,418)	$	36,102,277
Receivable for investments sold		1,342,474
Receivable for capital stock sold		22,355
Dividends and interest receivable		23,168
Prepaid expenses		265

Total assets		37,490,539

LIABILITIES
Payable for investments purchased		1,225,782
Payable for capital stock repurchased		328,485
Management fee payable		26,004
Accrued expenses and other liabilities		25,805
Distribution fee payable		2,842
Deferred directors’ fees		2,353
Administration fee payable		1,705

Total liabilities		1,612,976

NET ASSETS	$	35,877,563

Net assets were comprised of:
Common stock, at $0.01 par value	$	56,904
Paid-in capital in excess of par		35,970,310

		36,027,214
Accumulated net realized loss on investments		(4,619,510	)
Net unrealized appreciation on investments		4,469,859

Net assets, December 31, 2003	$	35,877,563

Class I:
Net asset value and redemption price per share, $21,638,468 / 3,415,797 outstanding shares of common stock (authorized 80,000,000 shares)	$	6.33

Class II:
Net asset value and redemption price per share, $14,239,095 / 2,274,653 outstanding shares of common stock (authorized 20,000,000 shares)	$	6.26

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $2,115 foreign withholding tax)	$	178,705
Interest		2,381

		181,086

EXPENSES
Management fee		225,063
Custodian’s fees and expenses		110,000
Shareholders’ reports		34,000
Distribution fee—Class II		24,302
Administration fee—Class II		14,581
Audit fee		12,000
Directors’ fees and expenses		11,000
Legal fees and expenses		11,000
Transfer agent’s fees and expenses		3,800
Commitment fee on syndicated credit agreement		100
Miscellaneous		4,948

Total expenses		450,794
Less: custodian fee credit		(127	)
expense subsidy		(159,298	)

Net expenses		291,369

NET INVESTMENT LOSS		(110,283	)

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		453,290
Net change in unrealized appreciation (depreciation) on investments		5,735,988

NET GAIN ON INVESTMENTS		6,189,278

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,078,995

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss	$	(110,283	)	$	(55,294	)
Net realized gain (loss) on investments		453,290			(2,328,260	)
Net change in unrealized appreciation (depreciation) on investments		5,735,988			(1,369,727	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		6,078,995			(3,753,281	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [3,613,901 and 3,165,201 shares, respectively]		20,091,224			17,595,192
Capital stock repurchased [1,382,835 and 1,140,272 shares, respectively]		(7,637,169	)		(6,137,311	)

NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		12,454,055			11,457,881

TOTAL INCREASE IN NET ASSETS		18,533,050			7,704,600
NET ASSETS:
Beginning of year		17,344,513			9,639,913

End of year	$	35,877,563		$	17,344,513

SEE NOTES TO FINANCIAL STATEMENTS.

A23




		*STOCK INDEX PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $659,448,903 (cost $2,970,499,659)	$	3,621,545,331
Dividends receivable		3,352,657
Receivable for capital stock sold		1,777,242
Due from broker—variation margin		218,225
Prepaid expenses		27,937
Foreign tax reclaim receivable		8,414

Total assets		3,626,929,806

LIABILITIES
Collateral for securities on loan		684,279,573
Management fee payable		848,545
Payable for capital stock repurchased		536,376
Accrued expenses and other liabilities		362,673

Total liabilities		686,027,167

NET ASSETS	$	2,940,902,639

Net assets were comprised of:
Common stock, at $0.01 par value	$	1,003,962
Paid-in capital in excess of par		2,237,878,167

		2,238,882,129
Undistributed net investment income		1,141,978
Accumulated net realized gain on investments		46,880,536
Net unrealized appreciation on investments		653,997,996

Net assets, December 31, 2003	$	2,940,902,639

Net asset value and redemption price per share, $2,940,902,639 / 100,396,165 outstanding shares of common stock (authorized 340,000,000 shares)	$	29.29

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends	$	45,127,834
Interest		47,749
Income from securities loaned, net		352,351

		45,527,934

EXPENSES
Management fee		8,883,674
Custodian’s fees and expenses		293,000
Audit fee		71,500
Shareholders’ reports		57,000
Insurance expenses		45,000
Directors’ fees		40,000
Commitment fee on syndicated credit agreement		36,000
Legal fees and expenses		25,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		4,985

Total expenses		9,461,659
Less: custodian fee credit		(343	)

Net expenses		9,461,316

NET INVESTMENT INCOME		36,066,618

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		38,734,772
Futures		13,681,530

		52,416,302

Net change in unrealized appreciation (depreciation) on:
Investments		553,521,590
Futures		3,990,274

		557,511,864

NET GAIN ON INVESTMENTS		609,928,166

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	645,994,784

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	36,066,618		$	35,460,042
Net realized gain on investments		52,416,302			83,880,833
Net change in unrealized appreciation (depreciation) on investments		557,511,864			(852,291,866	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		645,994,784			(732,950,991	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income		(36,873,448	)		(34,435,873	)
Distributions from net realized capital gain		(88,278,910	)		(23,877,334	)

TOTAL DIVIDENDS AND DISTRIBUTIONS		(125,152,358	)		(58,313,207	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [11,323,413 and 10,311,525 shares, respectively]		289,984,229			293,101,021
Capital stock issued in reinvestment of dividends and distributions [5,178,990 and 2,190,809 shares, respectively]		125,152,358			58,313,207
Capital stock repurchased [13,763,310 and 22,105,878 shares, respectively]		(347,327,411	)		(601,988,288	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		67,809,176			(250,574,060	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		588,651,602			(1,041,838,258	)
NET ASSETS:
Beginning of year		2,352,251,037			3,394,089,295

End of year (a)	$	2,940,902,639		$	2,352,251,037

(a) Includes undistributed net investment income of:	$	1,141,978		$	1,948,808

SEE NOTES TO FINANCIAL STATEMENTS.

A24




		*VALUE PORTFOLIO*

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003


ASSETS
Investments, at value including securities on loan of $264,057,525 (cost $1,560,282,796)	$	1,763,787,793
Receivable for investments sold		13,855,596
Dividends and interest receivable		1,757,592
Receivable for capital stock sold		207,433
Tax reclaim receivable		111,454
Prepaid expenses		14,119

Total assets		1,779,733,987

LIABILITIES
Collateral for securities on loan		281,152,744
Payable for investments purchased		38,892,571
Payable for capital stock repurchased		367,191
Accrued expenses and other liabilities		227,799
Management fee payable		69,345
Distribution fee payable		590
Administration fee payable		354

Total liabilities		320,710,594

NET ASSETS	$	1,459,023,393

Net assets were comprised of:
Common stock, at $0.01 par value	$	840,253
Paid-in capital in excess of par		1,474,754,423

		1,475,594,676
Accumulated net realized loss on investments		(220,076,280	)
Net unrealized appreciation on investments		203,504,997

Net assets, December 31, 2003	$	1,459,023,393

Class I:
Net asset value and redemption price per share $1,456,148,068 / 83,859,774 outstanding shares of common stock (authorized 340,000,000 shares)	$	17.36

Class II:
Net asset value and redemption price per share, $2,875,325 / 165,510 outstanding shares of common stock (authorized 10,000,000 shares)	$	17.37

STATEMENT OF OPERATIONS

Year Ended December 31, 2003


INVESTMENT INCOME
Dividends (net of $88,435 foreign withholding tax)	$	24,652,712
Income from securities lending, net		134,130

		24,786,842

EXPENSES
Management fee		5,132,821
Distribution fee—Class II		5,746
Administration fee—Class II		3,447
Shareholders’ reports		248,000
Custodian’s fees and expenses		163,000
Audit fee		32,000
Directors’ fees		25,000
Insurance expenses		24,000
Commitment fee on syndicated credit agreement		17,000
Legal fees and expenses		16,000
Transfer agent’s fees and expenses		5,500
Miscellaneous		349

Total expenses		5,672,863
Less: custodian fee credit		(171	)

Net expenses		5,672,692

NET INVESTMENT INCOME		19,114,150

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		4,156,849
Net change in unrealized appreciation on investments		302,547,646

NET GAIN ON INVESTMENTS		306,704,495

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	325,818,645

STATEMENT OF CHANGES IN NET ASSETS



	Year Ended December 31, 2003			Year Ended December 31, 2002
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	19,114,150		$	20,934,624
Net realized gain (loss) on investments		4,156,849			(219,804,118	)
Net change in unrealized appreciation (depreciation) on investments		302,547,646			(186,200,124	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		325,818,645			(385,069,618	)

DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income
Class I		(19,922,456	)		(20,321,246	)
Class II		(26,543	)		(19,706	)

		(19,948,999	)		(20,340,952	)

Tax return of capital
Class I		(111,957	)		—
Class II		(149	)		—

		(112,106	)		—

TOTAL DIVIDENDS AND DISTRIBUTIONS		(20,061,105	)		(20,340,952	)

CAPITAL STOCK TRANSACTIONS:
Capital stock sold [5,751,364 and 11,993,803 shares, respectively]		85,572,556			190,666,422
Capital stock issued in reinvestment of dividends [1,195,581 and 1,472,190 shares, respectively]		20,061,105			20,340,952
Capital stock repurchased [13,737,343 and 23,263,374 shares, respectively]		(200,934,074	)		(359,497,771	)

NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL STOCK TRANSACTIONS		(95,300,413	)		(148,490,397	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		210,457,127			(553,900,967	)
NET ASSETS:
Beginning of year		1,248,566,266			1,802,467,233

End of year (a)	$	1,459,023,393		$	1,248,566,266

(a) Includes undistributed net investment income of:	$	—		$	834,849

SEE NOTES TO FINANCIAL STATEMENTS.

A25




		*DIVERSIFIED BOND PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 99.2% LONG-TERM BONDS — 98.6%	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Aerospace — 0.3%
Raytheon Co.	Baa3	4.50%	11/15/07	$	700	$	709,731
Raytheon Co.	Baa3	8.30%	03/01/10		1,900		2,279,825
United Technologies Corp.	A2	7.125%	11/15/10		575		673,305

							3,662,861

Airlines — 0.3%
Continental Airlines, Inc., Series 2000-1, Class A-1	Baa3	8.048%	11/01/20		3,959		4,055,758

Asset Backed Securities — 2.1%
Citibank Credit Card Master Trust, Series 1996-3	Aaa	6.10%	05/15/08		12,500		13,576,781
MBNA Master Credit Card Trust	Aaa	7.00%	02/15/12		14,300		16,529,139

							30,105,920

Automobiles & Trucks — 3.2%
Auburn Hills Trust, Inc.	A3	12.375%	05/01/20		1,605		2,312,510
Daimlerchrysler North America Holding Corp.	A3	6.50%	11/15/13		2,000		2,106,820
Equus Cayman Finance, Ltd., (Cayman Islands)	Ba1	5.50%	09/12/08		830		841,541
Ford Motor Co.(b)	Baa1	7.45%	07/16/31		2,420		2,445,461
Ford Motor Credit Co.	A3	6.875%	02/01/06		555		592,356
Ford Motor Credit Co.	A3	7.00%	10/01/13		5,175		5,457,964
Ford Motor Credit Co.	A3	7.375%	02/01/11		2,995		3,264,370
Ford Motor Credit Co.(b)	A3	7.75%	03/15/05		3,500		3,693,515
Ford Motor Credit Co.	A3	7.875%	06/15/10		600		670,419
General Motors Acceptance Corp.(b)	A3	6.15%	04/05/07		3,710		3,976,226
General Motors Acceptance Corp.(b)	A3	6.875%	08/28/12		5,895		6,341,994
General Motors Corp.(b)	Baa1	8.375%	07/15/33		5,435		6,309,019
Hyundai Motor Manufacturing LLC	Ba1	5.30%	12/19/08		1,820		1,825,443
Lear Corp.	Ba1	7.96%	05/15/05		3,040		3,252,800
Lear Corp.	Ba1	8.11%	05/15/09		1,700		1,999,625

							45,090,063

Banks and Savings & Loans — 3.1%
Bank of America Corp.	Aa2	5.875%	02/15/09		3,150		3,451,442
Cho Hung Bank, (South Korea)(g)	Baa2	11.50%	04/01/10		1,335		1,475,175
Cho Hung Bank, (South Korea)(g)	Baa2	11.875%	04/01/10		1,190		1,320,900
Citigroup, Inc.	Aa2	5.875%	02/22/33		675		663,395
Citigroup, Inc.(b)	Aa2	6.00%	10/31/33		2,000		1,999,794
Citigroup, Inc.(b)	Aa2	6.625%	06/15/32		980		1,061,621
Citigroup, Inc.	Aa2	7.25%	10/01/10		2,000		2,331,116
Hanvit Bank, (South Korea)(g)	Baa3	12.75%	03/01/10		100		111,000
HBOS PLC, (United Kingdom)	Aa3	6.00%	11/01/33		3,300		3,280,609
HSBC Holdings PLC, (United Kingdom)(b)	A1	5.25%	12/12/12		3,100		3,174,583
KBC Bank Funding Trust III(b)(g)	A2	9.86%	11/29/49		5,000		6,337,180
Korea Exchange Bank, (South Korea)(g)	Baa3	13.75%	06/30/10		1,915		2,221,400
PNC Funding Corp.	A3	7.50%	11/01/09		1,090		1,278,296
Santander Central Hispano Issuances, (Cayman Islands)	A1	7.625%	09/14/10		1,200		1,422,508
UFJ Finance Aruba AEC, (Aruba)	Baa1	6.75%	07/15/13		2,565		2,735,570
Washington Mutual, Inc.	A3	7.50%	08/15/06		10,000		11,171,420

							44,036,009

Building & Construction — 0.7%
American Standard, Inc.	Ba2	7.625%	02/15/10		3,800		4,313,000
Cemex SA, (Mexico)	Ba1	9.625%	10/01/09		2,400		2,898,000
D.R. Horton, Inc.	Ba1	6.875%	05/01/13		1,000		1,065,000
KB HOME	Ba1	7.75%	10/15/04		2,260		2,316,500

							10,592,500

Cable & Pay Television Systems — 0.5%
Clear Channel Communications, Inc.	Baa3	4.40%	05/15/11		700		683,497
Comcast Cable Communications, Inc.	Baa3	6.375%	01/30/06		650		699,756
Comcast Corp., Class A	Baa3	7.05%	03/15/33		255		277,392

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Cable & Pay Television Systems (cont’d.)
Cox Communications, Inc.(b)	Baa2	7.125%	10/01/12	$	1,875	$	2,162,650
Rogers Cablesystems, Inc., (Canada)	Ba2	10.00%	03/15/05		3,500		3,753,750

							7,577,045

Chemicals — 0.7%
Dow Chemical Co.	A3	5.97%	01/15/09		1,490		1,602,939
Dow Chemical Co.,	A3	5.75%	11/15/09		2,600		2,783,693
Eastman Chemical Co.	Baa2	7.00%	04/15/12		775		856,242
ICI Wilmington, Inc.	Baa3	4.375%	12/01/08		2,040		2,032,332
ICI Wilmington, Inc.	Baa3	5.625%	12/01/13		2,930		2,944,108

							10,219,314

Collateralized Mortgage Obligations — 0.4%
Washington Mutual, Series 2002-AR15, Class A5(g)	Aaa	4.38%	12/25/32		5,400		5,418,089

Commercial Mortgage Backed Securities — 4.3%
Bear Stearns Commercial Mortgage Securities, Inc., Series 2003-T10, Class X2(g)	AAA(e)	1.27%	03/13/40		43,638		2,829,651
Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2	AAA(e)	7.37%	06/19/29		4,429		4,844,595
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2	Aaa	4.93%	07/10/39		8,500		8,628,757
JP Morgan Chase Commercial Mortgage Securities, Series 2003-CB6, Class A2	Aaa	5.255%	07/12/37		9,700		9,998,378
JP Morgan Chase Commercial Mortgage Securities, Series 2003-ML1A, Class A2	Aaa	4.767%	03/12/39		4,969		4,971,178
LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A3	Aaa	4.83%	11/15/27		3,375		3,434,345
Morgan Stanley Dean Witter Capital I, Series 2000-PRIN, Class A3	Aaa	7.36%	02/23/34		2,530		2,881,013
PNC Mortgage Acceptance Corp., Series 1999-CM1, Class A1B	AAA(e)	7.33%	12/10/32		4,800		5,534,766
PNC Mortgage Acceptance Corp., Series 2001-C1, Class A1	Aaa	5.91%	03/12/34		7,143		7,683,478
Wachovia Bank Commercial Mortgage Trust, Series 2002-C2, Class A4	AAA(e)	4.98%	11/15/34		2,500		2,541,697
Wachovia Bank Commercial Mortgage Trust, Series 2003-C3, Class A2	AAA(e)	4.867%	02/15/35		7,330		7,373,711

							60,721,569

Commercial Services — 0.2%
Certegy, Inc.	Baa2	4.75%	09/15/08		1,900		1,947,852
Equifax, Inc.	Baa1	4.95%	11/01/07		1,340		1,401,527

							3,349,379

Computers — 1.7%
Computer Associates International, Inc.	Baa3	6.375%	04/15/05		2,005		2,095,937
Computer Sciences Corp.	A2	6.75%	06/15/06		495		542,842
Electronic Data Systems Corp.	Baa3	6.00%	08/01/13		7,375		7,246,933
Electronic Data Systems Corp.(b)	Baa3	6.85%	10/15/04		5,735		5,934,945
Hewlett-Packard Co.	A3	7.15%	06/15/05		400		430,050
International Business Machines Corp.(b)	A1	5.875%	11/29/32		3,500		3,521,640
International Business Machines Corp.	A1	8.375%	11/01/19		575		753,504
Jabil Circuit, Inc.	Baa3	5.875%	07/15/10		2,000		2,086,142
Unisys Corp.	Ba1	8.125%	06/01/06		1,650		1,782,000

							24,393,993

Containers & Packaging — 0.8%
Pactiv Corp.	Baa2	7.20%	12/15/05		2,450		2,659,392
Pactiv Corp.	Baa2	7.95%	12/15/25		1,575		1,874,302
Pactiv Corp.	Baa2	8.125%	06/15/17		2,360		2,869,436
Sealed Air Corp.	Baa3	5.625%	07/15/13		1,255		1,284,230
Sealed Air Corp.	Baa3	6.875%	07/15/33		1,910		2,021,726

							10,709,086

Diversified Operations — 0.2%
Bombardier, Inc., (Canada)(b)	Baa3	6.75%	05/01/12		2,900		3,168,250

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Drugs & Medical Supplies — 1.4%
Bristol-Myers Squibb Co.	A1	5.75%	10/01/11	$	1,025	$	1,107,637
Pharmacia Corp.	Aaa	6.50%	12/01/18		1,015		1,179,403
Quest Diagnostics, Inc.	Baa3	6.75%	07/12/06		5,775		6,311,151
Schering-Plough Corp.(b)	A3	5.30%	12/01/13		1,500		1,526,173
Schering-Plough Corp.	A3	6.50%	12/01/33		1,850		1,924,437
Wyeth	Baa1	5.50%	02/01/14		5,300		5,360,499
Wyeth(h)	Baa1	6.125%	03/15/04		2,200		2,219,807

							19,629,107

Financial Services — 2.0%
Capital One Bank	Baa2	6.50%	07/30/04		500		513,737
Capital One Bank(b)	Baa2	6.875%	02/01/06		4,250		4,597,641
Capital One Bank	Baa3	6.50%	06/13/13		3,500		3,669,446
Capital One Financial Corp.	Baa3	6.25%	11/15/13		1,550		1,589,046
CIT Group, Inc.(b)	A2	5.50%	11/30/07		235		251,609
General Electric Capital Corp.	Aaa	6.125%	02/22/11		2,900		3,190,336
General Electric Capital Corp.	Aaa	6.75%	03/15/32		5,000		5,535,605
Household Finance Corp.(b)	A1	5.75%	01/30/07		1,000		1,081,103
Household Finance Corp.	A1	6.75%	05/15/11		550		619,159
International Lease Finance Corp.(b)	A1	2.95%	05/23/06		1,940		1,955,349
Midland Funding II, Series B	Ba3	13.25%	07/23/06		4,000		4,680,000

							27,683,031

Food & Beverage — 1.9%
Cadbury Schweppes US Finance(b)	Baa2	3.875%	10/01/08		2,600		2,588,193
ConAgra Foods, Inc.(b)	Baa1	6.00%	09/15/06		1,600		1,729,419
Kellogg Co.	Baa2	6.00%	04/01/06		9,975		10,688,611
Kraft Foods, Inc.	A3	5.25%	06/01/07		650		691,536
Kraft Foods, Inc.	A3	5.625%	11/01/11		2,630		2,771,089
Kraft Foods, Inc.	A3	6.25%	06/01/12		1,425		1,553,052
Miller Brewing Co.	Baa1	5.50%	08/15/13		1,215		1,241,296
SABMiller PLC, (United Kingdom)	Baa1	6.625%	08/15/33		3,500		3,700,260
Tyson Foods, Inc.	Baa3	6.625%	10/17/05		1,025		1,070,912
Tyson Foods, Inc.(b)	Baa3	7.25%	10/01/06		1,250		1,369,791

							27,404,159

Forest Products — 0.2%
International Paper Co.	Baa2	5.50%	01/15/14		2,110		2,117,839
Weyerhaeuser Co.	Baa2	7.375%	03/15/32		1,170		1,272,143

							3,389,982

Gaming — 0.1%
International Game Technology(b)	Baa3	7.875%	05/15/04		1,895		1,934,473

Hospital Management — 1.0%
HCA, Inc.	Ba1	7.125%	06/01/06		10,500		11,376,036
HCA, Inc.	Ba1	7.875%	02/01/11		2,000		2,281,022

							13,657,058

Industrials — 0.5%
Rockwell Automation, Inc.	A3	5.20%	01/15/98		6,500		5,139,745
RPM International, Inc.	Baa3	6.25%	12/15/13		1,690		1,713,591

							6,853,336

Insurance — 0.5%
Aon Corp.	Baa2	7.375%	12/14/12		225		257,269
Commerce Group, Inc.	Baa2	5.95%	12/09/13		720		730,193
Hartford Financial Services Group, Inc.	A3	2.375%	06/01/06		1,400		1,392,989
Odyssey Re Holdings Corp.	BBB-(e)	7.65%	11/01/13		2,820		2,946,150
Royal & Sun Alliance Insurance Group PLC, (United Kingdom)(b)	Ba2	8.95%	10/15/29		535		520,223
UnumProvident Corp.	Baa3	7.625%	03/01/11		665		732,584

							6,579,408

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Investment Banks — 0.8%
JP Morgan Chase & Co.	A2	6.75%	02/01/11	$	1,260	$	1,420,765
Lehman Brothers Holdings, Inc.	A1	6.625%	02/05/06		3,685		4,007,043
Morgan Stanley	Aa3	7.75%	06/15/05		5,000		5,427,025

							10,854,833

Leisure — 1.2%
Carnival Corp.	A3	3.75%	11/15/07		3,600		3,606,433
Carnival PLC, (United Kingdom)	Baa3	7.30%	06/01/07		825		916,675
Harrahs Operating Co., Inc.(b)	Ba1	7.875%	12/15/05		5,375		5,845,312
MGM Mirage, Inc.	Ba1	6.00%	10/01/09		3,900		4,007,250
Park Place Entertainment Corp.	Ba2	7.875%	12/15/05		2,450		2,624,563

							17,000,233

Machinery — 1.2%
Ingersoll-Rand Co., (Bermuda)	BBB+(e)	5.80%	06/01/04		10,225		10,406,933
John Deere Capital Corp.	A3	7.00%	03/15/12		6,275		7,228,731

							17,635,664

Media — 3.8%
British Sky Broadcasting Group PLC, (United Kingdom)(b)	Baa3	7.30%	10/15/06		3,050		3,396,081
Chancellor Media Corp.	Ba1	8.00%	11/01/08		4,720		5,463,400
Liberty Media Corp.(b)	Baa3	5.70%	05/15/13		1,525		1,542,179
News America, Inc.(g)	Baa3	6.703%	05/21/04		22,000		22,351,186
Thomson Corp., (Canada)	A3	5.75%	02/01/08		2,750		2,981,737
Time Warner, Inc.	Baa1	5.625%	05/01/05		500		523,396
Time Warner, Inc.(b)	Baa1	6.875%	05/01/12		3,000		3,375,915
Time Warner, Inc.	Baa1	7.70%	05/01/32		2,300		2,684,344
Turner Broadcasting Systems, Inc.	Baa1	7.40%	02/01/04		10,000		9,999,944
United News & Media PLC, (United Kingdom)	Baa2	7.25%	07/01/04		2,000		2,034,642

							54,352,824

Metals — 0.3%
Alcan, Inc.	Baa1	5.20%	01/15/14		2,400		2,425,874
Alcan, Inc.	Baa1	6.125%	12/15/33		1,820		1,831,088

							4,256,962

Municipals — 0.3%
Illinois St., G.O., Taxable Pension	Aa3	5.10%	06/01/33		4,820		4,408,758

Oil & Gas — 2.6%
B.J. Services Co.	Baa2	7.00%	02/01/06		5,000		5,342,275
Conoco Funding Co., (Canada)	A3	6.35%	10/15/11		600		672,695
ConocoPhillips	A3	4.75%	10/15/12		1,780		1,787,490
ConocoPhillips	A3	6.375%	03/30/09		3,075		3,445,538
Halliburton Co.(g)	Baa2	2.656%	10/17/05		6,040		6,105,697
Halliburton Co.	Baa2	5.50%	10/15/10		2,920		3,053,785
Halliburton Co.	Baa2	7.60%	08/15/96		140		151,317
Occidental Petroleum Corp.(b)	Baa1	4.25%	03/15/10		3,250		3,270,377
Petrobras International Finance Co., (Mexico)(b)	Ba2	8.375%	12/10/18		2,000		2,055,000
Petronas Capital, Ltd., (Malaysia)	Baa1	7.00%	05/22/12		7,300		8,315,591
Suncor Energy, Inc.	A3	5.95%	12/01/34		850		843,762
Tosco Corp.	A3	7.25%	01/01/07		1,500		1,680,708

							36,724,235

Oil & Gas Exploration & Production — 2.2%
Burlington Resources Finance, (Canada)	Baa1	6.50%	12/01/11		510		569,577
Chesapeake Energy Corp.	Ba3	8.125%	04/01/11		61		67,393
Devon Financing Corp.(b)	Baa2	6.875%	09/30/11		1,150		1,304,014
Marathon Oil Corp.	Baa1	6.80%	03/15/32		1,800		1,927,732
Ocean Energy, Inc.	Baa3	7.25%	10/01/11		500		575,440

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Oil & Gas Exploration & Production (cont’d.)
Parker & Parsley Petroleum Co.	Ba1	8.25%	08/15/07	$	1,310	$	1,513,068
Parker & Parsley Petroleum Co.	Ba1	8.875%	04/15/05		4,995		5,345,894
Pemex Finance, Ltd., (Cayman Islands)	Baa1	9.14%	08/15/04		2,054		2,086,582
Petroleos Mexicanos, (Mexico)	Baa1	8.85%	09/15/07		4,450		5,150,875
Petroleos Mexicanos, (Mexico)	Baa1	9.25%	03/30/18		1,470		1,712,550
Petroleos Mexicanos, (Mexico)(b)	Baa1	9.50%	09/15/27		5,900		7,021,000
Transocean, Inc.	Baa2	7.50%	04/15/31		255		292,019
Valero Energy Corp.	Baa3	6.875%	04/15/12		3,725		4,122,081

							31,688,225

Real Estate Investment Trust — 0.6%
ERP Operating LP(d)	Baa1	6.63%	04/13/05		3,900		4,132,935
ERP Operating LP	Baa1	7.10%	06/23/04		1,500		1,536,986
Host Marriott LP	Ba3	8.375%	02/15/06		2,000		2,132,500

							7,802,421

Restaurants — 0.2%
Tricon Global Restaurants, Inc.	Ba1	8.875%	04/15/11		1,950		2,364,375
Yum! Brands, Inc.	Ba1	7.45%	05/15/05		595		634,419

							2,998,794

Retail — 0.6%
JC Penney Co., Inc.	Ba3	7.375%	08/15/08		1,000		1,111,250
May Department Stores Co.	Baa1	6.90%	01/15/32		410		441,581
Saks, Inc.	B1	7.00%	12/01/13		48		48,960
Target Corp.(b)	A2	6.35%	01/15/11		1,400		1,562,223
The Gap, Inc.(b)	Ba3	6.90%	09/15/07		4,675		5,160,031
Toys “R” Us, Inc.(b)	Baa3	7.375%	10/15/18		270		269,810

							8,593,855

Structured Notes — 2.0%
DJ TRAC-X NA HY S2 T1(b)	Ba3	7.375%	03/25/09		11,250		11,728,125
DJ TRAC-X NA HY S2 T2(b)	Ba3	6.05%	03/25/09		10,300		10,544,625
Lehman Brothers, Inc., TRAINS HY-1-2003(f)	B1	8.4848%	05/15/13		2,121		2,343,224
Preferred Term Securities X, Class A-1(g)	Aaa	1.86%	07/03/33		3,900		3,890,250

							28,506,224

Supermarkets — 0.3%
Albertson’s, Inc.(b)	Baa2	7.50%	02/15/11		990		1,134,891
Albertson’s Inc.	Baa2	8.00%	05/01/31		1,500		1,736,432
The Kroger Co.(b)	Baa3	6.75%	04/15/12		1,375		1,523,528

							4,394,851

Telecommunications — 5.8%
AT&T Corp.(b)(h)	Baa2	7.25%	11/15/06		4,950		5,473,888
AT&T Corp.(b)(h)	Baa2	8.05%	11/15/11		870		1,001,353
AT&T Corp.(h)	Baa2	8.75%	11/15/31		1,165		1,361,376
AT&T Wireless Services, Inc.(b)	Baa2	8.125%	05/01/12		1,815		2,134,351
CenturyTel, Inc.	Baa2	7.875%	08/15/12		2,025		2,398,463
Citizens Communications Co.	Baa2	8.50%	05/15/06		2,845		3,106,345
Citizens Communications Co.	Baa2	9.25%	05/15/11		2,700		3,192,056
Deutsche Telekom International Finance BV, (Netherlands)(b)	Baa3	5.25%	07/22/13		4,050		4,091,387
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	8.25%	06/15/05		1,425		1,545,776
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	8.75%	06/15/30		350		447,100
Deutsche Telekom International Finance BV, (Netherlands)(h)	Baa3	9.25%	06/01/32		135		185,238
INTELSAT, (Bermuda)	Baa3	6.50%	11/01/13		3,365		3,511,017
Koninklijke (Royal) KPN NV, (Netherlands)	Baa1	8.00%	10/01/10		3,000		3,588,801

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Telecommunications (cont’d.)
L-3 Communications Corp.	Ba3	6.125%	01/15/14	$	2,825	$	2,832,063
LCI International, Inc.	Caa1	7.25%	06/15/07		6,675		6,408,000
PCCW-HKTC Capital, Ltd., (Hong Kong)(b)	Baa2	8.00%	11/15/11		2,150		2,523,268
Sprint Capital Corp.	Baa3	6.90%	05/01/19		1,625		1,660,001
Sprint Capital Corp.(b)	Baa3	8.375%	03/15/12		1,640		1,915,192
Telecom de Puerto Rico	Baa1	6.65%	05/15/06		6,800		7,370,268
Telecom de Puerto Rico	Baa1	6.80%	05/15/09		4,365		4,879,795
Telecom Italia Capital, (Luxembourg)	Baa2	5.25%	11/15/13		1,100		1,102,190
TeleCorp PCS, Inc.	Baa2	10.625%	07/15/10		5,940		6,943,438
TELUS Corp., (Canada)	Ba1	7.50%	06/01/07		6,250		6,994,650
TELUS Corp., (Canada)	Ba1	8.00%	06/01/11		150		175,393
Verizon Global Funding Corp.	A+(e)	4.375%	06/01/13		650		614,049
Verizon Wireless Capital, Inc.	A3	5.375%	12/15/06		5,900		6,295,902
Vodafone Group PLC, (United Kingdom)	A2	5.00%	12/16/13		1,150		1,145,246

							82,896,606

Tobacco — 0.3%
Altria Group, Inc	Baa2	7.00%	11/04/13		3,450		3,680,443
Altria Group, Inc.(b)	Baa2	7.65%	07/01/08		1,100		1,217,484

							4,897,927

Utilities — 7.7%
CenterPoint Energy Houston Electric LLC	Baa2	5.70%	03/15/13		2,950		3,082,753
CenterPoint Energy Houston Electric LLC	Baa2	6.95%	03/15/33		1,000		1,107,761
CenterPoint Energy Resources Corp.	Ba1	7.875%	04/01/13		6,600		7,471,840
Cinergy Corp.	Baa2	6.25%	09/01/04		11,000		11,283,789
Commonwealth Edison Co.	A3	5.875%	02/01/33		1,400		1,400,551
Commonwealth Edison Co.	Baa1	7.625%	01/15/07		7,525		8,509,812
Consumers Energy Co.	Baa3	5.375%	04/15/13		1,000		1,004,625
Consumers Energy Co.(h)	Baa3	6.25%	09/15/06		2,300		2,483,448
Dominion Resources, Inc.	Baa1	2.80%	02/15/05		5,000		5,051,545
Duke Energy Field Services	Baa2	7.50%	08/16/05		12,000		12,893,544
Empresa Nacional de Electricidad SA, (Chile)	Ba2	8.35%	08/01/13		625		702,589
Energy East Corp.	Baa2	6.75%	09/15/33		1,150		1,206,662
Enersis SA, (Chile)(b)	Ba2	7.375%	01/15/14		3,700		3,809,394
FirstEnegy Corp.(b)	Baa2	5.50%	11/15/06		1,700		1,760,931
FirstEnergy Corp.	Baa2	6.45%	11/15/11		3,030		3,140,438
FirstEnergy Corp.	Baa2	7.375%	11/15/31		1,125		1,150,849
MidAmerican Energy Holdings Co.	Baa3	7.23%	09/15/05		5,000		5,389,355
Niagara Mohawk Power	Baa2	8.00%	06/01/04		5,000		5,129,645
NiSource Finance Corp.(g)	Baa3	1.919%	05/04/05		5,000		4,999,970
NiSource Finance Corp.(b)	Baa3	7.875%	11/15/10		3,000		3,568,173
Northern States Power Co.	A3	8.00%	08/28/12		2,800		3,413,847
Oncor Electric Delivery Co.	Baa2	7.00%	09/01/22		300		330,508
Pinnacle Partners LP	Ba2	8.83%	08/15/04		7,535		7,808,144
PSE&G Power LLC	Baa1	6.95%	06/01/12		1,500		1,691,679
Southern California Edison Co.	Baa3	6.375%	01/15/06		1,250		1,325,000
Southern California Edison Co.	Baa3	7.625%	01/15/10		1,100		1,265,000
Southern California Edison Co.	Baa2	8.00%	02/15/07		3,823		4,372,556
Xcel Energy, Inc.	Baa3	3.40%	07/01/08		1,330		1,298,846
Xcel Energy, Inc.(b)	Baa3	7.00%	12/01/10		1,850		2,097,808

							108,751,062

Waste Management — 0.7%
Allied Waste North America, Inc.(b)	BB-(e)	7.375%	01/01/04		1,675		1,675,000
Waste Management, Inc.	Baa3	7.00%	10/01/04		1,600		1,655,802
Waste Management, Inc.	Baa3	7.125%	10/01/07		1,550		1,743,262
Waste Management, Inc.	Baa3	7.65%	03/15/11		2,100		2,446,281

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Waste Management (cont’d.)
Waste Management, Inc.	Baa3	7.75%	05/15/32	$	2,500	$	2,946,085

							10,466,430

FOREIGN GOVERNMENT BONDS — 2.9%
Federal Republic of Brazil, (Brazil)(b)	B2	9.25%	10/22/10		2,675		2,875,625
Federal Republic of Brazil, (Brazil)	B2	11.00%	08/17/40		2,800		3,073,000
Federal Republic of Brazil, (Brazil)	B2	11.25%	07/26/07		565		661,050
Federal Republic of Germany, (Germany)	Aaa	4.25%	01/04/14		EUR 12,020		15,093,207
Republic of Colombia, (Colombia)	Ba2	9.75%	04/23/09	$	550		607,750
Republic of Croatia, (Croatia)(g)	Baa3	2.00%	07/31/06		1,694		1,693,510
Republic of El Salvador, (El Salvador)	Baa3	7.75%	01/24/23		1,700		1,789,250
Republic of Panama, (Panama)	Ba1	1.9375%	07/17/14		550		516,991
Republic of Peru, (Peru)	Ba2	4.50%	03/07/17		750		666,600
Republic of Philippines, (Philippines)(b)	Ba1	9.875%	03/16/10		530		586,975
Russian Federation, (Russia)	Baa3	5.00%	03/31/30		3,760		3,619,000
United Mexican States, (Mexico)	Baa2	8.375%	01/14/11		8,000		9,500,000

							40,682,958

U.S. GOVERNMENT AND AGENCY OBLIGATIONS — 4.2%
Federal Farm Credit Bank		4.15%	05/15/13		6,660		6,407,533
Federal Home Loan Mortgage Corp.(b)		5.75%	01/15/12		10,240		11,155,374
Federal Home Loan Mortgage Corp.		6.00%	06/15/11		4,000		4,439,576
Federal National Mortgage Association(b)		4.625%	10/15/13		9,300		9,234,509
Federal National Mortgage Association(b)		6.00%	05/15/11		19,000		21,058,460
Federal National Mortgage Association		7.25%	05/15/30		2,280		2,784,097
United States Treasury Bond		5.375%	02/15/31		1,765		1,840,634
United States Treasury Notes		4.25%	11/15/13		435		434,524
United States Treasury Notes(b)		5.75%	08/15/10		1,300		1,457,625

							58,812,332

U.S. GOVERNMENT MORTGAGE BACKED SECURITIES — 34.8%
Federal Home Loan Mortgage Corp.		4.50%	TBA		18,000		17,994,384
Federal Home Loan Mortgage Corp.		5.50%	TBA		14,000		14,166,250
Federal Home Loan Mortgage Corp.		6.00%	TBA		13,500		13,947,187
Federal Home Loan Mortgage Corp.		6.50%	07/01/32-09/01/32		7,760		8,130,135
Federal Home Loan Mortgage Corp.		6.50%	TBA		11,000		11,519,068
Federal Home Loan Mortgage Corp.		7.00%	10/01/32		1,270		1,344,170
Federal Home Loan Mortgage Corp.		7.00%	TBA		16,000		16,924,992
Federal National Mortgage Association		4.50%	TBA		5,000		5,004,690
Federal National Mortgage Association		5.00%	TBA		115,500		116,682,696
Federal National Mortgage Association		5.50%	12/01/16-06/01/23		19,103		19,786,663
Federal National Mortgage Association		5.50%	TBA		121,850		123,494,396
Federal National Mortgage Association		6.00%	09/01/17-02/01/23		13,175		13,699,633
Federal National Mortgage Association		6.00%	TBA		50,000		51,671,900
Federal National Mortgage Association		6.50%	11/01/09-11/01/33		34,563		36,304,066
Federal National Mortgage Association		6.50%	TBA		1,000		1,045,625
Federal National Mortgage Association		7.00%	03/01/32-06/01/32		4,777		5,057,952
Federal National Mortgage Association		7.00%	TBA		3,500		3,705,625
Federal National Mortgage Association		9.00%	10/01/16-09/01/21		90		98,251
Government National Mortgage Association		5.50%	05/15/33-07/15/33		4,972		5,060,421
Government National Mortgage Association		5.50%	TBA		10,000		10,165,620
Government National Mortgage Association		6.50%	09/15/32-11/15/33		13,128		13,841,951
Government National Mortgage Association		6.50%	TBA		2,500		2,634,375
Government National Mortgage Association		7.50%	10/15/25-02/15/26		582		626,212

							492,906,262

TOTAL LONG-TERM BONDS (cost $1,358,874,815)							1,398,861,846

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


PREFERRED STOCK — 0.6%	Shares	Value (Note 2)
Centaur Funding Corp.(a)	27,000	$	7,843,500
(cost $4,323,180)			7,843,500

TOTAL LONG-TERM INVESTMENTS (cost $1,363,197,995)			1,406,705,346


SHORT-TERM INVESTMENT — 38.8%
Mutual Fund — 38.8%
Dryden Core Investment Fund — Taxable Money Market Fund Series, (Note 4)(c) (cost $550,512,508)	550,512,508		550,512,508

TOTAL INVESTMENTS — 138.0% (cost $1,913,710,503; Note 6)			1,957,217,854
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS, NET(j)			(730,467	)
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(i)			46,614
LIABILITIES IN EXCESS OF OTHER ASSETS — (38.0)%			(538,558,184	)

TOTAL NET ASSETS — 100.0%		$	1,417,975,817

The following abbreviations are used in portfolio descriptions:


G.O.		General Obligation
TBA		Securities purchased on a forward commitment basis.

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $157,018,281; cash collateral of $162,986,302 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Standard & Poor’s rating.

(f)

(g)	Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(h)	Increase/decrease in rate variable upon increase/decrease in Moody’s or Standard & Poor’s rating.

(i)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
478	U.S. Treasury Bonds	Mar 04	$	51,904,582	$	52,251,375	$	346,793
1,282	U.S. Treasury 5 Yr Notes	Mar 04		142,092,578		143,103,250		1,010,672

								1,357,465

Short Positions:
896	U.S. Treasury 10 Yr Notes	Mar 04		99,495,803		100,590,000		(1,094,197	)
724	U.S. Treasury 2 Yr Notes	Mar 04		154,456,203		154,969,938		(513,735	)

								(1,607,932	)

							$	(250,467	)

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

(j)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Foreign Currency Contract	Value at Settlement Date		Current Value		Unrealized Appreciation/ (Depreciation)
Purchased:
Eurodollars expiring 1/5/04	$	14,764,772	$	15,004,143	$	239,371

Sold:
Eurodollars expiring 1/5/04		14,274,259		15,004,143		(729,884	)
Eurodollars expiring 2/3/04		14,752,280		14,992,234		(239,954	)

	$	29,026,539	$	29,996,377		(969,838	)

					$	(730,467	)

SEE NOTES TO FINANCIAL STATEMENTS.




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 80.3%
COMMON STOCKS — 40.1%	Shares	Value (Note 2)
Aerospace & Defense — 0.7%
Essex Corp.(a)	4,900	$	46,011
General Dynamics Corp.	5,300		479,067
Moog, Inc. (Class “A” Stock)(a)	1,900		93,860
Northrop Grumman Corp.	5,600		535,360

			1,154,298

Air Freight & Couriers — 0.1%
Dynamex, Inc.(a)	5,650		67,800
Forward Air Corp.(a)	2,950		81,125

			148,925

Airlines — 0.1%
Pinnacle Airlines Corp.(a)	6,400		88,896

Automobiles — 0.2%
Harley-Davidson, Inc.	5,100		242,403
Winnebago Industries, Inc.	1,300		89,375

			331,778

Beverages — 0.1%
Anheuser-Busch Cos., Inc.	3,900		205,452

Biotechnology — 1.4%
Alexion Pharmaceuticals, Inc.(a)	3,650		62,123
Amgen, Inc.(a)	13,400		828,120
Discovery Laboratories. Inc.(a)	3,700		38,813
Genentech, Inc.(a)	5,400		505,278
Gilead Sciences, Inc.(a)	6,500		377,910
MedImmune, Inc.(a)	12,900		327,660
Serologicals Corp.(a)	7,200		133,920
Telik, Inc.(a)	2,400		55,224
Vicuron Pharmaceuticals, Inc.(a)	3,200		59,680

			2,388,728

Building Products — 0.1%
Watsco, Inc.	4,000		90,920

Capital Markets — 2.1%
Bank of New York Co., Inc.	8,700		288,144
Goldman Sachs Group, Inc.	6,600		651,618
J.P. Morgan Chase & Co.	11,100		407,703
Lehman Brothers Holdings, Inc.	7,200		555,984
Mellon Financial Corp.	9,000		288,990
Merrill Lynch & Co., Inc.	15,300		897,345
State Street Corp.	7,800		406,224

			3,496,008

Chemicals — 0.3%
IMC Global, Inc.	16,100		159,873
Lyondell Chemical Co.	8,300		140,685
Scotts Co. (The) (Class “A” Stock)(a)	1,600		94,656
Valspar Corp. (The)	1,900		93,898

			489,112

Commercial Banks — 0.6%
Astoria Financial Corp.	2,900		107,880
BankUnited Financial Corp. (Class “A” Stock)(a)	6,700		172,793
Commerce Bancorp, Inc.	1,400		73,752
First Community Bancorp	2,050		74,087
FleetBoston Financial Corp.	6,200		270,630
Franklin Bank Corp.(a)	3,100		58,900


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Commercial Banks (cont’d.)
Hibernia Corp. (Class “A” Stock)	1,400	$	32,914
Nara Bancorp, Inc.	1,900		51,870
NetBank, Inc.	5,050		67,418
PrivateBankcorp, Inc.	1,750		79,660

			989,904

Commercial Services & Supplies — 1.4%
Administaff, Inc.(a)	16,900		293,722
Allied Waste Industries, Inc.(a)	24,500		340,060
Apollo Group, Inc. (Class “A” Stock)(a)	4,000		272,000
Bright Horizons Family Solutions, Inc.(a)	1,850		77,700
Cendant Corp.(a)	13,700		305,099
Global Payments, Inc.	2,800		131,936
Kelly Services, Inc. (Class “A” Stock)	2,700		77,058
Kforce, Inc.(a)	4,100		38,294
Marlin Business Services, Inc.(a)	4,550		79,170
NDCHealth Corp.	4,100		105,042
Providence Service Corp.(a)	4,700		76,046
Republic Services, Inc.	4,000		102,520
Sylvan Learning Systems, Inc.(a)	3,550		102,204
Waste Management, Inc.	14,600		432,160

			2,433,011

Communications Equipment — 0.9%
Alvarion, Ltd.(a)	2,800		32,340
Cisco Systems, Inc.(a)	39,200		952,168
Harris Corp.	5,200		197,340
Motorola, Inc.	8,300		116,781
Nokia Corp., ADR (Finland)(a)	4,600		78,200
QUALCOMM, Inc.	1,400		75,502

			1,452,331

Computers & Peripherals — 1.3%
Applied Films Corp.(a)	1,440		47,549
Dell, Inc.(a)	17,900		607,884
EMC Corp.(a)	27,800		359,176
Hewlett-Packard Co.	27,955		642,126
Innovex, Inc.(a)	8,550		72,077
International Business Machines Corp. (IBM)	5,100		472,668

			2,201,480

Consumer Finance — 0.5%
American Express Co.	18,100		872,963

Diversified Financials — 1.7%
AmeriCredit Corp.(a)	10,000		159,300
Citigroup, Inc.	35,266		1,711,812
Eaton Vance Corp.	3,900		142,896
EZCORP, Inc.(a)	4,200		35,700
Jeffries Group, Inc.	5,500		181,610
Kirklands, Inc.(a)	5,450		96,247
Morgan Stanley	3,800		219,906
Raymond James Financial, Inc.	3,700		139,490
Saxon Capital, Inc.(a)	4,350		91,132
Student Loan Corp.	400		58,400
World Acceptance Corp.(a)	4,000		79,640

			2,916,133

SEE NOTES TO FINANCIAL STATEMENTS.

B10




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Diversified Telecommunication Services — 0.4%
SBC Communications, Inc.	17,600	$	458,832
Verizon Communications, Inc.	8,500		298,180

			757,012

Electric Utilities — 0.9%
DTE Energy Co.	6,800		267,920
FirstEnergy Corp.	16,000		563,200
PG&E Corp.(a)	14,500		402,665
PNM Resources, Inc.	3,400		95,540
TXU Corp.	6,800		161,296

			1,490,621

Electronic Equipment & Instruments — 0.6%
Agilent Technologies, Inc.(a)	22,500		657,900
FLIR Systems, Inc.(a)	5,700		208,050
Sanmina-SCI Corp.(a)	12,100		152,581
Veeco Instruments, Inc.(a)	2,750		77,550

			1,096,081

Energy Equipment & Services — 2.1%
Baker Hughes, Inc.	11,400		366,624
BJ Services Co.(a)	7,200		258,480
Cal Dive International, Inc.(a)	2,750		66,302
ENSCO International, Inc.	18,700		508,079
GlobalSantaFe Corp.	19,800		491,634
Grey Wolf, Inc.(a)	19,500		72,930
Halliburton Co.	20,300		527,800
Maverick Tube Corp.(a)	3,250		62,563
Oil States International, Inc.(a)	5,250		73,185
Schlumberger, Ltd.(a)	18,200		995,904
Superior Energy Services, Inc.(a)	8,300		78,020
Unit Corp.(a)	3,250		76,537

			3,578,058

Food & Staples Retailing — 1.0%
Kroger Co.(a)	30,300		560,853
Safeway, Inc.(a)	12,700		278,257
Wal-Mart Stores, Inc.	9,700		514,585
Whole Foods Market, Inc.	4,300		288,659

			1,642,354

Food Products — 0.4%
ConAgra Foods, Inc.	10,100		266,539
Kraft Foods, Inc. (Class “A” Stock)	8,200		264,204
Peet’s Coffee & Tea, Inc.(a)	4,050		70,511
Wild Oats Markets, Inc.(a)	6,850		88,570

			689,824

Gas Utilities — 0.2%
ONEOK, Inc.	4,600		101,568
Sempra Energy	6,100		183,366

			284,934

Health Care Equipment & Supplies — 0.7%
Alcon, Inc.(a)	1,200		72,648
Cooper Cos., Inc.	4,100		193,233
Dade Behring Holdings, Inc.(a)	2,500		89,350
EPIX Medical, Inc.(a)	3,750		61,050
I-Flow Corp.(a)	4,200		58,422
Intuitive Surgical, Inc.(a)	4,650		79,468


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Health Care Equipment & Supplies (cont’d.)
Laserscope(a)	3,400	$	53,006
Medtronic, Inc.	6,400		311,104
North American Scientific, Inc.(a)	4,600		48,300
OrthoLogic Corp.(a)	7,750		47,508
TriPath Imaging, Inc.(a)	8,750		68,250
Ventana Medical Systems, Inc.(a)	1,150		45,310

			1,127,649

Health Care Providers & Services — 1.2%
Caremark Rx, Inc.(a)	5,100		129,183
CIGNA Corp.	5,000		287,500
Covance, Inc.(a)	4,600		123,280
ICON PLC, ADR (Ireland)(a)	460		20,056
Inveresk Research Group, Inc.(a)	3,800		93,974
Kindred Healthcare, Inc.(a)	1,800		93,564
LabOne, Inc.(a)	3,550		115,268
Laboratory Corp. of America Holdings(a)	7,400		273,430
Lincare Holdings, Inc.(a)	2,800		84,084
PacifiCare Health Systems, Inc.(a)	1,900		128,440
Pediatrix Medical Group, Inc.(a)	3,800		209,342
Per Se Technologies, Inc.(a)	5,000		76,300
Pharmaceutical Product Development, Inc.(a)	5,700		153,729
Province Healthcare Co.(a)	4,650		74,400
Tenet Healthcare Corp.(a)	9,100		146,055

			2,008,605

Hotels, Restaurants & Leisure — 1.4%
Brinker International, Inc.(a)	11,100		368,076
Buffalo Wild Wings, Inc.(a)	2,950		76,552
CEC Entertainment, Inc.(a)	2,000		94,780
Chicago Pizza & Brewery, Inc.(a)	2,600		38,792
Marriott International, Inc. (Class “A” Stock)	2,900		133,980
McDonald’s Corp.	22,500		558,675
Multimedia Games, Inc.(a)	2,150		88,365
RARE Hospitality International, Inc.(a)	3,500		85,540
Scientific Games Corp. (Class “A” Stock)(a)	9,200		156,492
Sonic Corp.(a)	2,400		73,488
Starbucks Corp.(a)	15,700		519,042
WMS Industries, Inc.(a)	4,300		112,660

			2,306,442

Household Durables — 0.6%
D.R. Horton, Inc.	4,250		183,855
Harman International Industries, Inc.	7,200		532,656
Hovnanian Enterprises, Inc. (Class “A” Stock)(a)	3,700		322,122
Snap-on, Inc.	1,400		45,136

			1,083,769

Household Products — 0.5%
Kimberly-Clark Corp.	9,800		579,082
Procter & Gamble Co.	2,300		229,724

			808,806

Industrial Conglomerates — 0.8%
3M Co.	3,200		272,096

SEE NOTES TO FINANCIAL STATEMENTS.

B11




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Industrial Conglomerates (cont’d.)
Citadel Security Software, Inc.(a)	3,800	$	14,440
General Electric Co.	21,400		662,972
Gentek, Inc.(a)	442		15,664
Tyco International, Ltd. (Bermuda)	17,400		461,100

			1,426,272

Insurance — 1.8%
Allstate Corp.	6,500		279,630
American International Group, Inc.	6,112		405,103
American Medical Security Group, Inc.(a)	5,550		124,431
Commerce Group, Inc.	3,000		118,500
Delphi Financial Group, Inc.	450		16,200
Hartford Financial Services Group	5,900		348,277
Infinity Property & Casualty Corp.	3,950		130,548
Philadelphia Consolidated Holding Corp.(a)	3,500		170,905
ProAssurance Corp.(a)	2,400		77,160
Protective Life Corp.	2,100		71,064
Scottish Annuity & Life Holdings, Ltd.	4,350		90,393
Travelers Property Casualty Corp. (Class “A” Stock)	19,600		328,888
UnumProvident Corp.	8,700		137,199
XL Capital Ltd. (Class “A” Shares) (Bermuda)	8,800		682,440

			2,980,738

Internet & Catalog Retail — 0.4%
eBay, Inc.(a)	5,500		355,245
InterActiveCorp(a)	7,700		261,261

			616,506

Internet Software & Services — 0.6%
Altiris, Inc.(a)	1,600		58,368
CNET Networks, Inc.(a)	9,600		65,472
Digitas, Inc.(a)	8,600		80,152
Equinix, Inc.(a)	2,600		73,320
InfoSpace, Inc.(a)	3,150		72,608
Modem Media, Inc.(a)	5,700		46,569
RADWARE, Ltd.(a)	2,400		65,400
Tumbleweed Communications Corp.(a)	7,750		64,945
United Online, Inc.(a)	5,575		93,604
ValueClick, Inc.(a)	9,000		81,720
Yahoo!, Inc.(a)	8,900		402,013

			1,104,171

IT Consulting & Services — 0.1%
Forrester Research, Inc.(a)	4,150		74,161
Lionbridge Technologies, Inc.(a)	7,850		75,438
Sapient Corp.(a)	12,900		72,240

			221,839

Leisure Equipment & Products
K2, Inc.(a)	5,650		85,937

Machinery — 0.1%
Intevac, Inc.(a)	4,550		64,201
Navistar International Corp.(a)	3,200		153,248

			217,449


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Media — 2.2%
Clear Channel Communications, Inc.	5,900	$	276,297
Hughes Electronics Corp.(a)	26,696		441,818
Image Entertainment, Inc.(a)	10,200		42,126
Knight-Ridder, Inc.	2,600		201,162
Liberty Media Corp. (Class “A” Stock)(a)	27,700		329,353
New York Times Co. (Class “A” Stock)	3,800		181,602
News Corp., Ltd., ADR (Australia)	15,469		467,930
Scholastic Corp.(a)	2,900		98,716
Sinclair Broadcast Group, Inc. (Class “A” Stock)(a)	12,700		189,484
Time Warner, Inc.(a)	7,900		142,121
UnitedGlobalCom, Inc.(a)	4,511		38,257
Univision Communications, Inc. (Class “A” Stock)(a)	10,400		412,776
Viacom, Inc. (Class “B” Stock)	22,282		988,875

			3,810,517

Metals & Mining — 0.1%
Graftech International, Ltd.(a)	6,750		91,125

Multi-line Retail — 0.3%
Costco Wholesale Corp.(a)	7,100		263,978
Fred’s, Inc.	7,125		220,733

			484,711

Office Electronics — 0.3%
Xerox Corp.(a)	35,200		485,760

Oil & Gas — 1.6%
Apache Corp.	2,485		201,533
Chesapeake Energy Corp.	9,300		126,294
Cross Timbers Royalty Trust	7		200
Exxon Mobil Corp.	10,100		414,100
Occidental Petroleum Corp.	10,100		426,624
Rowan Cos., Inc.(a)	8,200		189,994
Swift Energy Co.(a)	3,500		58,975
Total SA (France)	2,950		548,473
Total SA ADR (France)(a)	4,648		429,986
Westport Resources Corp.(a)	4,000		119,440
XTO Energy, Inc.	6,166		174,498

			2,690,117

Paper & Forest Products — 0.7%
Boise Cascade Corp.	9,000		295,740
Georgia-Pacific Corp.	11,200		343,504
International Paper Co.	12,400		534,564

			1,173,808

Personal Products — 0.2%
Avon Products, Inc.(a)	4,000		269,960
Chattem, Inc.(a)	5,100		91,290

			361,250

Pharmaceuticals — 2.6%
Allergan, Inc.	3,300		253,473
AstraZeneca PLC, ADR	6,500		314,470
AtheroGenics, Inc.(a)	4,600		68,770
Barr Pharmaceuticals, Inc.(a)	1,600		123,120
Bradley Pharmaceuticals, Inc. (Class “A” Stock)(a)	2,900		73,747
Durect Corp.(a)	20,500		52,890
Forest Laboratories, Inc.(a)	2,500		154,500

SEE NOTES TO FINANCIAL STATEMENTS.

B12




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Pharmaceuticals (cont’d.)
Inspire Phamaceuticals, Inc.(a)	3,700	$	52,392
K-V Pharmaceutical Co. (Class “B” Stock)(a)	7,950		205,984
Medco Health Solutions, Inc.(a)	7,016		238,474
Novartis AG, ADR (Switzerland)(a)	13,500		619,515
Penwest Pharmaceuticals Co.(a)	3,300		57,024
Pfizer, Inc.	30,104		1,063,574
POZEN, Inc.(a)	4,450		45,390
Roche Holdings, Ltd. ADR (Switerland)(a)	3,700		373,216
Salix Pharmaceuticals, Ltd.(a)	3,550		80,479
Teva Pharmaceutical Industries, Ltd., ADR (Israel)	6,800		385,628
Wyeth	5,800		246,210

			4,408,856

Real Estate Investment Trust — 0.2%
Alexandria Real Estate Equities, Inc.	1,600		92,640
Entertainment Properties Trust	3,700		128,427
SL Green Realty Corp.	2,400		98,520

			319,587

Road & Rail — 0.2%
Union Pacific Corp.	4,700		326,556
Vitran Corp., Inc.(a)	5,400		76,410

			402,966

Semiconductors & Semiconductor — 2.2%
02Micro International, Ltd.(a)	3,100		69,440
Agere Systems, Inc. (Class “B” Stock)(a)	12,500		36,250
Altera Corp.(a)	13,600		308,720
Analog Devices, Inc.	4,800		219,120
Applied Materials, Inc.(a)	7,300		163,885
Asyst Technologies, Inc.(a)	5,500		95,425
ChipPAC, Inc.(a)	10,000		75,900
Exar Corp.(a)	3,850		65,758
Genus, Inc.(a)	10,800		64,800
Intel Corp.	29,600		953,120
KLA-Tencor Corp.(a)	6,800		398,956
LogicVision, Inc.(a)	15,450		69,525
Marvell Technology Group Ltd. (Bermuda)(a)	1,800		68,274
Mykrolis Corp.(a)	3,900		62,712
PLX Technology, Inc.(a)	9,250		81,862
Power Integrations, Inc.(a)	2,050		68,593
Texas Instruments, Inc.	23,100		678,678
Ultratech, Inc.(a)	1,850		54,335
Xicor, Inc.(a)	7,250		82,215
Zoran Corp.(a)	5,250		91,297

			3,708,865

Semiconductor Equipment & Products
FSI International, Inc.(a)	4,800		35,424
SRS Labs, Inc.(a)	2,900		27,057

			62,481

Software — 1.3%
ClickSoftware Co.(a)	20,150		82,212
Electronic Arts, Inc.(a)	5,700		272,346
Embarcadero Technologies, Inc.(a)	4,150		66,192


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Software (cont’d.)
Kintera, Inc.(a)	2,950	$	36,580
Mentor Graphics Corp.(a)	18,400		267,536
Merge Technologies, Inc.(a)	3,200		56,448
Microsoft Corp.	39,200		1,079,568
OPNET Technologies, Inc.(a)	4,000		65,840
PeopleSoft, Inc.(a)	9,400		214,320
Phoenix Technologies, Ltd.(a)	6,600		53,328
Synplicity, Inc.(a)	6,300		49,329

			2,243,699

Specialty Retail — 1.7%
Aaron Rents, Inc.	4,800		96,624
Bed Bath & Beyond, Inc.(a)	14,300		619,905
CarMax, Inc.(a)	800		24,744
Casual Male Retail Group, Inc.(a)	14,900		103,406
Charlotte Russe Holding, Inc.(a)	5,900		81,774
Cost Plus, Inc.(a)	1,300		53,300
CSK Auto Corp.(a)	6,200		116,374
Guitar Center, Inc.(a)	3,450		112,401
Hot Topic, Inc.(a)	2,300		67,758
Limited Brands	10,900		196,527
Lowe’s Cos., Inc.	5,000		276,950
Movie Gallery, Inc.	7,800		145,704
Regis Corp.	1,560		61,651
TBC Corp.(a)	2,550		65,816
Tiffany & Co.	11,900		537,880
Toys ‘R’ Us, Inc.(a)	23,300		294,512

			2,855,326

Telecommunications
NTL, Inc.(a)	812		56,637

Textiles & Apparel — 0.2%
Ashworth, Inc.(a)	9,350		75,455
Guess?, Inc.(a)	5,300		63,971
Oxford Industries, Inc.	2,540		86,055
Phillips-Van Heusen Corp.	7,300		129,502

			354,983

Tobacco — 0.6%
Altria Group, Inc.	14,000		761,880
Loews Corp.	11,100		280,164

			1,042,044

Wireless Telecommunication Services — 0.4%
American Tower Corp. (Class “A” Stock)(a)	21,400		231,548
Vodafone Group PLC, ADR	15,300		383,112

			614,660

TOTAL COMMON STOCKS (cost $55,352,020)			67,954,398

WARRANTS & RIGHTS(a)
Gentek, Inc
expiring 10/31/06	842		8
expiring 10/31/08	444		5
expiring 10/31/10	217		2

SEE NOTES TO FINANCIAL STATEMENTS.

B13




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


WARRANTS & RIGHTS(a) (Continued)	Shares	Value (Note 2)

McLeodUSA, Inc., expiring 04/16/07	2,311	$	1,179
United Mexican States,
expiring 06/01/04	1,300,000		9,750
expiring 06/01/05	1,300,000		1,300
expiring 06/30/06	1,300,000		1,300
expiring 06/01/07	1,300,000		780
XM Satellite Radio, Inc.,
expiring 03/03/10	100		1

TOTAL WARRANTS & RIGHTS (cost $194)			14,325



Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)
CORPORATE BONDS — 21.2%
Advertising — 0.1%
Vertis, Inc.
Sec’d. Notes
9.75%	04/01/09	B3	$	145	$	157,506

Aerospace & Defense — 0.5%
Alliant Techsystems, Inc.
Sr. Sub. Notes
8.50%	05/15/11	B2		75		82,500
BE Aerospace, Inc.
Sr. Sub. Notes
8.875%	05/01/11	Caa3		90		84,375
Dunlop Standard Aerospace Holdings PLC
Notes
11.875%	05/15/09	B3		50		53,500
Esterline Technologies Corp.
Sr. Sub. Notes
7.75%	06/15/13	B1		125		134,375
K&F Industries, Inc.
Sr. Sub. Notes
9.625%	12/15/10	B3		75		84,094
Sr. Sub. Notes, Ser. B
9.25%	10/15/07	B3		78		80,437
L-3 Communications Corp.
Sr. Sub. Notes
7.625%	06/15/12	Ba3		125		135,469
Sequa Corp.
Sr. Notes
8.875%	04/01/08	B1		100		108,500
TransDigm, Inc.
Gtd. Notes
8.375%	07/15/11	B3		150		159,562

						922,812

Airlines — 0.2%
AMR Corp.
Debs.
10.00%	04/15/21	Caa2		50		38,000
Notes
10.40%	03/10/11	Caa2		100		80,000


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Airlines (cont’d.)
Continental Airlines, Inc.
Pass-thru. Certs., Ser. 99-1B
6.795%	02/02/20	Ba2	$	73	$	61,357
Delta Air Lines, Inc.
Notes
8.30%	12/15/29	B3		210		138,863
Northwest Airlines, Inc.
Gtd. Notes
7.625%	03/15/05	Caa1		50		48,750

						366,970

Auto Parts & Equipment — 0.3%
American Axle & Manufacturing, Inc.
Gtd. Notes
9.75%	03/01/09	Ba1		100		105,750
ArvinMeritor, Inc.
Notes
8.75%	03/01/12	Baa3		125		143,125
Keystone Automotive Operations, Inc.
Sr. Sub. Notes
9.75%	11/01/13	B3		125		134,375
Navistar International Corp.
Sr. Notes
9.375%	06/01/06	Ba3		40		44,150
TRW Automotive
Sr. Notes
9.375%	02/15/13	B1		65		74,263

						501,663

Automobiles — 0.1%
Asbury Automotive Group, Inc.
Sr. Sub. Notes
8.00%	03/15/14	B3		25		25,125
AutoNation, Inc.
Sr. Notes
9.00%	08/01/08	Ba2		35		40,162
Group 1 Automotive, Inc.
Sr. Sub. Notes
8.25%	08/15/13	B1		75		80,250
Sonic Automotive, Inc.
Sr. Sub. Notes
8.625%	08/15/13	B2		75		79,125

						224,662

Broadcasting & Other Media — 0.6%
Alliance Atlantis Commerce, Inc. (Canada)
Sr. Sub. Notes
13.00%	12/15/09	B1		150		171,000
Granite Broadcasting Corp.
Sr. Sec’d. Notes
9.75%	12/01/10	B3		100		99,750
Gray Television, Inc.
Sr. Sub. Notes
9.25%	12/15/11	B2		100		111,500
Paxson Communications Corp.
Gtd. Notes
10.75%	07/15/08	Caa1		125		136,406

SEE NOTES TO FINANCIAL STATEMENTS.

B14




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Broadcasting & Other Media (cont’d.)
Sinclair Broadcast Group, Inc.
Gtd. Sr. Sub. Notes
8.00%	03/15/12	B2	$	200	$	216,000
Susquehanna Media Co.
Sr. Sub. Notes
7.375%	04/15/13	B1		175		182,438

						917,094

Building & Construction — 0.4%
American Standard, Inc.
Sr. Note
7.375%	04/15/05	Ba2		125		131,875
D.R. Horton, Inc.
Sr. Notes
7.875%	08/15/11	Ba1		200		227,000
KB HOME
Sr. Sub. Notes
8.625%	12/15/08	Ba2		80		89,600
Nortek Holdings, Inc.
Sr. Notes
9.25%	03/15/07	B1		75		77,062
Nortek, Inc.
Sr. Sub. Notes, Ser. B
9.875%	06/15/11	B3		35		38,588

						564,125

Business Services — 0.1%
Iron Mountain, Inc.
Gtd. Notes
8.625%	04/01/13	B2		70		75,600
R.H. Donnelley Finance Corp.
Sr. Sub. Notes
10.875%	12/15/12	B2		150		177,938

						253,538

Cable — 0.8%
Callahan Nordrhein Westfalen
(Germany) Sr. Disc. Notes, Zero Coupon (until 7/15/05)
1.00%	07/15/10(c)	Ca		250		10,000
Charter Communications Holdings LLC
Sr. Disc. Notes, Zero Coupon (until 05/15/06)
Zero	05/15/11	Ca		650		435,500
Sr. Notes
10.25%	01/15/10	Ca		150		134,250
CSC Holding, Inc.
Sr. Debs
7.625%	07/15/18	B1		50		52,500
DirecTV Holdings LLC
Sr. Notes
8.375%	03/15/13	B1		60		69,600
EchoStar DBS Corp.
Sr. Notes
9.125%	01/15/09	Ba3		6		6,713
9.375%	02/01/09	Ba3		150		157,687
10.375%	10/01/07	Ba3		380		416,575

						1,282,825


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Chemicals — 0.8%
Equistar Chemicals LP
Sr. Notes
10.125%	09/01/08	B2	$	5	$	5,475
10.625%	05/01/11	B2		65		71,825
10.625%	05/01/11	B2		75		82,875
Hercules, Inc.
Debs.
6.60%	08/01/27	Ba1		150		152,625
Huntsman Advanced Materials
Sr. Sec’d. Notes
11.00%	07/15/10	B2		60		66,300
Huntsman ICI Chemicals LLC
Sr. Sub. Notes
10.125%	07/01/09	Caa1		185		190,550
Huntsman LLC
Sr. Sec’d. Notes
11.625%	10/15/10	B2		75		76,500
IMC Global, Inc.
Sr. Notes, Ser. B
11.25%	06/01/11	B1		185		203,500
Nalco Co.
Sr. Notes
7.75%	11/15/11	B2		125		133,750
OM Group, Inc.
Gtd. Notes
9.25%	12/15/11	Caa1		280		291,200
Rhodia SA
Sr. Sub. Notes
8.875%	06/01/11	B3		25		23,000
Westlake Chemical Corp.
Gtd. Notes
8.75%	07/15/11	Ba3		75		82,125

						1,379,725

Commercial Services — 0.1%
Coinmach Corp.
Sr. Note
9.00%	02/01/10	B2		125		135,625

Containers & Packaging — 0.8%
Anchor Glass Container Corp.
11.00%	02/15/13	B2		50		58,000
Berry Plastics Corp.
Gtd. Notes
10.75%	07/15/12	B3		100		115,125
BWAY Corp.
Sr. Sub. Notes
10.00%	10/15/10	B3		25		27,250
Four M. Corp.
Sr. Notes
12.00%	06/01/06	B3		200		199,000
Graham Packaging Holding Co.
Sr. Disc. Notes
10.75%	01/15/09	Caa2		275		283,938

SEE NOTES TO FINANCIAL STATEMENTS.

B15




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Containers & Packaging (cont’d.)
Graphic Packaging International Corp.
Sr. Sub. Notes
9.50%	08/15/13	B3	$	75	$	82,875
Greif Brothers Corp.
Sr. Sub. Notes
8.875%	08/01/12	B2		150		165,000
Owens-Brockway Glass Container
Sr. Gtd. Sec’d. Notes
7.75%	05/15/11	B1		175		187,906
8.75%	11/15/12	B1		40		44,550
Rexnord Corp.
Sr. Sub. Notes
10.125%	12/15/12	B3		100		109,500
Silgan Holdings, Inc.
Sr. Sub. Notes
6.75%	11/15/13	B1		50		50,125
Tekni-Plex, Inc.
Sr. Sec’d. Notes
8.75%	11/15/13	B2		60		62,550

						1,385,819

Diversified Financials — 0.8%
Chevy Chase Savings Bank
Sub. Debs.
9.25%	12/01/05	Ba3		105		107,756
Ford Motor Credit Co.
Notes
7.25%	10/25/11	A3		250		271,141
General Motors Acceptance Corp.
Notes
6.875%	09/15/11	A3		750		807,845
Sovereign Bancorp., Inc.
Sr. Notes
10.50%	11/15/06	Ba1		55		65,043
Western Financial Bank
Sub. Cap. Debs.
8.875%	08/01/07	B1		80		82,800

						1,334,585

Diversified Manufacturing — 0.4%
Amsted Industries, Inc.
Sr. Notes
10.25%	10/15/11	B3		75		82,875
Bombardier Recreational Products
Sr. Sub. Notes
8.375%	12/15/13	B3		125		130,625
International Wire Group
Sr. Sub. Notes
11.75%	06/01/05	Ca		30		18,450
Koppers, Inc.
Sr. Sec’d Notes
9.875%	10/15/13	B2		135		148,838
Motors & Gears, Inc.
Notes
10.75%	11/15/06	Caa1		125		106,250


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Diversified Manufacturing (cont’d.)
Tyco International Group SA
2.75%	01/15/18	Ba2	$	75	$	95,719
Gtd. Notes
6.125%	11/01/08	Ba2		25		26,750
6.375%	10/15/11	Ba2		100		106,875
6.75%	02/15/11	Ba2		25		27,312

						743,694

Electric Utilities — 1.9%
AES Corp.
Notes
8.75%	05/15/13	B2		135		150,863
Sr. Notes
9.375%	09/15/10	B3		425		471,218
9.50%	06/01/09	B3		25		27,719
AES Drax Holdings, Ltd.
Sr. Sec’d. Notes
10.41%	12/31/20	Caa2		50		43,000
AES Eastern Energy LP,
Pass-thru. Certs., Ser. 99-A
9.00%	01/02/17	Ba1		40		44,006
Allegheny Energy Supply Co., LLC
Notes
8.75%	04/15/12	B3		113		106,503
Calpine Corp.
Sr. Notes
8.75%	07/15/13	B(e)		75		73,125
8.50%	02/15/11	Caa1		380		300,675
CMS Energy Corp.
Sr. Notes
7.50%	01/15/09	B3		90		92,700
8.50%	04/15/11	B3		50		54,000
Cogentrix Energy, Inc.
Gtd. Notes
8.75%	10/15/08	B1		15		15,113
Sr. Notes
8.10%	03/15/04	B1		35		34,912
Edison Mission Energy
Sr. Notes
7.73%	06/15/09	B2		160		152,400
Empresa Nacional De Electricidad SA
Notes
8.35%	08/01/13	Ba2		185		207,966
8.625%	08/01/15	Ba2		55		62,662
First Energy Corp.
Notes, Ser. C
7.375%	11/15/31	Baa2		50		51,149
Homer City Funding LLC
Gtd. Notes
8.137%	10/01/19	Ba2		50		53,750
Midland Funding Corp.
Debs.
13.25%	07/23/06	Ba3		205		239,850
Mirant Americas Generation LLC
Sr. Notes
7.20%	10/01/08(c)	Caa3		40		33,800

SEE NOTES TO FINANCIAL STATEMENTS.

B16




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Electric Utilities (cont’d.)
NRG Energy, Inc.
8.00%	12/15/13	B2	$	125	$	131,406
Orion Power Holdings, Inc.
Sr. Notes
12.00%	05/01/10	B2		140		170,100
Reliant Resources, Inc.
Sr. Sec’d. Notes
9.50%	07/15/13	B1		95		101,650
Southern California Edison Co.
First Mtge. Notes
8.00%	02/15/07	Baa2		250		285,937
TECO Energy, Inc.
Notes
7.50%	06/15/10	Ba1		175		187,250
TNP Enterprises, Inc.
Sr. Sub. Notes
10.25%	04/01/10	Ba3		100		109,000
Western Resources, Inc.
Notes
7.875%	05/01/07	Ba1		55		61,463

						3,262,217

Electronic Equipment & Instruments — 0.1%
Flextronics International, Ltd.
Sr. Sub. Notes
6.50%	05/15/13	Ba2		95		98,325

Energy — 2.4%
Aquila, Inc.
Sr. Notes
7.625%	11/15/09	Caa1		50		49,125
9.95%	02/01/11	Caa1		85		90,738
Chesapeake Energy Corp.
Sr. Notes
8.375%	11/01/08	Ba3		165		181,500
Dynegy Holdings, Inc.
Sr. Sec'd. Notes
10.125%	07/15/13	B3		205		235,750
El Paso Corp.
Sr. Notes
7.00%	05/15/11	Caa1		325		299,812
Sr. Notes, MTN
7.75%	01/15/32	Caa1		200		170,500
7.80%	08/01/31	Caa1		100		85,125
El Paso Production Holding Co.
Sr. Notes
7.75%	06/01/13	B2		250		246,250
Entercom Radio LLC
Gtd. Notes
7.625%	03/01/14	Ba3		50		53,688
Forest Oil Corp.
Sr. Notes
8.00%	06/15/08	Ba3		200		218,000
Gemstone Investors, Ltd.
Gtd. Sr. Notes
7.71%	10/31/04	Caa1		90		90,900


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Energy (cont’d.)
GulfTerra Energy Partners LP
Sr. Notes
6.25%	06/01/10	Ba3	$	100	$	104,000
Hanover Compressor Co.
Sr. Notes
8.625%	12/15/10	B3		50		52,000
Hanover Equipment Trust
Sec’d. Notes
8.75%	09/01/11	B2		95		100,700
Houston Exploration Co.
Sr. Sub. Notes
7.00%	06/15/13	B2		25		25,813
Leviathan Gas Pipeline Co.
Sr. Sub. Notes
10.375%	06/01/09	B1		100		108,500
Magnum Hunter Resources, Inc.
Gtd. Notes
9.60%	03/15/12	B2		75		85,125
Newfield Exploration Co.
Sr. Sub. Notes
8.375%	08/15/12	Ba3		50		56,000
North American Energy Partners, Inc.
Sr. Notes
8.75%	12/01/11	B2		75		78,750
Paramount Resources, Ltd.
Sr. Notes
7.875%	11/01/10	B2		50		49,750
Parker Drilling Co.
Sr. Notes
9.625%	10/01/13	B2		175		182,000
Plains All American Pipeline LP
Sr. Notes
7.75%	10/15/12	Ba1		25		28,844
Premcor Refinancing Group, Inc.
Sr. Notes
9.50%	02/01/13	Ba3		100		114,000
Sr. Sub. Notes
7.75%	02/01/12	B2		50		51,500
SEMCO Energy, Inc.
Sr. Notes
7.125%	05/15/08	Ba2		150		156,187
Stone Energy Corp.
Sr. Sub. Notes
8.25%	12/15/11	B2		195		212,550
Tennessee Gas Pipeline Co.
Debs.
7.00%	03/15/27	B1		90		93,375
7.00%	10/15/28	B1		50		47,500
7.625%	04/01/37	B1		145		142,825
Tesoro Petroleum Corp.
Sr. Sec’d. Notes
8.00%	04/15/08	Ba3		10		10,625
Transmontaigne, Inc.
Sr. Sub. Notes
9.125%	06/01/10	B3		50		53,625

SEE NOTES TO FINANCIAL STATEMENTS.

B17




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Energy (cont’d.)
Vintage Petroleum, Inc.
Sr. Notes
8.25%	05/01/12	Ba3	$	200	$	217,500
Williams Cos., Inc.
Notes
7.125%	09/01/11	B3		225		237,937
8.125%	03/15/12	B3		40		44,400
9.25%	03/15/04	B3		120		121,500
Sr. Notes
8.625%	06/01/10	B3		50		56,125

						4,152,519

Food Products — 0.8%
Ahold Finance USA, Inc.
Notes
8.25%	07/15/10	B1		25		27,250
Agrilink Foods, Inc.
Sr. Sub. Notes
11.875%	11/01/08	B3		25		26,563
Carrols Corp.
Sr. Sub. Notes
9.50%	12/01/08	B3		60		60,900
Del Monte Corp.
Sr. Sub. Notes
8.625%	12/15/12	B3		100		109,500
Dole Food, Inc.
Gtd. Notes
7.25%	06/15/10	B2		75		77,250
Sr. Notes
8.625%	05/01/09(b)	B2		50		54,875
8.875%	03/15/11	B2		50		54,875
Merisant Co.
Sr. Sub. Notes
9.50%	07/15/13	B3		55		58,575
National Beef Packing Co., LLC
Sr. Notes
10.50%	08/01/11	B2		25		25,750
Pathmark Stores, Inc.
Gtd. Notes
8.75%	02/01/12	B2		90		94,050
Gtd. Notes
8.75%	02/01/12	B(e)		50		52,250
Smithfield Foods, Inc.
Sr. Notes
8.00%	10/15/09	Ba2		80		84,400
United Agri Products, Inc.
Sr. Notes
8.25%	12/15/11	B3		125		128,437
Winn-Dixie Stores, Inc.
Gtd. Notes
8.875%	04/01/08	Ba2		100		101,500
Yum! Brands, Inc.
Sr. Notes
8.875%	04/15/11	Ba1		300		363,750

						1,319,925


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Funeral Services
Service Corp. International
Sr. Notes
6.00%	12/15/05	B1	$	10	$	10,200

Gaming — 1.0%
Argosy Gaming Co.
Sr. Sub. Notes
9.00%	09/01/11	B2		50		55,375
Aztar Corp.
Sr. Sub. Notes
9.00%	08/15/11	Ba3		50		54,875
Boyd Gaming Corp.
Sr. Sub. Notes
8.75%	04/15/12	B1		90		98,775
Coast Hotels & Casinos, Inc.
Sr. Sub. Notes
9.50%	04/01/09	B2		75		79,313
Kerzner International Ltd.
(Bahamas) Sr. Sub. Notes
8.875%	08/15/11	B2		180		196,650
MGM Mirage, Inc.
Gtd. Notes
9.75%	06/01/07	Ba2		205		233,700
Mohegan Tribal Gaming Authority
Sr. Sub. Notes
6.375%	07/15/09	Ba3		50		51,625
8.00%	04/01/12	Ba3		45		48,712
Park Place Entertainment Corp.
Notes
8.50%	11/15/06	Ba1		125		138,437
Sr. Sub. Notes
8.875%	09/15/08	Ba2		40		45,300
9.375%	02/15/07	Ba2		45		50,963
Station Casinos, Inc.
Sr. Sub. Notes
9.875%	07/01/10	B2		185		203,500
Venetian Casino Resort LLC
Notes
11.00%	06/15/10	B3		215		249,400
Wynn Las Vegas LLC
Second Mtge.
12.00%	11/01/10	B3		150		176,625

						1,683,250

Health Care — 1.4%
Alliance Imaging, Inc.
Sr. Sub. Notes
10.375%	04/15/11	B3		150		159,000
Bio-Rad Laboratories, Inc.
Sr. Sub. Notes
7.50%	08/15/13	Ba3		100		110,000
Columbia/HCA Healthcare Corp.
Notes
7.69%	06/15/25	Ba1		75		79,148
Concentra Operating Corp.
Sr. Sub. Notes
9.50%	08/15/10	B3		50		54,000
Sr. Sub. Notes, Ser. B
13.00%	08/15/09	B3		50		55,750

SEE NOTES TO FINANCIAL STATEMENTS.

B18




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Health Care (cont’d.)
Coventry Health Care, Inc.
Sr. Notes
8.125%	02/15/12	Ba3	$	150	$	166,500
HCA, Inc.
Notes
7.125%	06/01/06	Ba1		100		108,343
8.36%	04/15/24	Ba1		100		112,359
9.00%	12/15/14	Ba1		100		121,021
HEALTHSOUTH Corp.
Sr. Sub. Notes
8.50%	02/01/08(c)	Caa2		50		48,000
Magellan Health Services, Inc.
Sr. Notes
9.375%	11/15/07(c)	B+(e)		100		105,000
Mariner Health Care, Inc.
Sr. Sub. Notes
8.25%	12/15/13	B3		100		101,000
Medco Health Solutions, Inc.
Sr. Notes
7.25%	08/15/13	Ba1		100		109,095
MedQuest, Inc.
Sr. Sub. Notes
11.875%	08/15/12	B3		165		180,262
NeighborCare, Inc.
Sr. Sub. Notes
6.875%	11/15/13	Ba3		75		76,313
Quintiles Transnational Corp.
Sr. Sub. Notes
10.00%	10/01/13	B3		100		108,000
Res-Care, Inc.
Gtd. Notes
10.625%	11/15/08	B2		85		87,975
Select Medical Corp.
Sr. Sub. Notes
7.50%	08/01/13	B2		35		37,100
9.50%	06/15/09	B2		70		76,825
Tenet Healthcare Corp.
Sr. Notes
5.375%	11/15/06	B1		50		49,250
6.375%	12/01/11	B1		50		48,000
6.50%	06/01/12	B1		135		129,431
Triad Hospitals, Inc.
Sr. Notes
8.75%	05/01/09	B1		150		162,563
Valeant Pharmaceuticals International
Sr. Notes
7.00%	12/15/11	B1		50		51,500

						2,336,435

Hotels, Restaurants & Leisure — 1.3%
Equinox Holdings, Inc.
Sr. Notes
9.00%	12/15/09	B3		65		67,113
Extended Stay America, Inc.
Sr. Sub. Notes
9.875%	06/15/11	B2		160		179,200


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Hotels, Restaurants & Leisure (cont’d.)
Felcor Lodging LP
Sr. Notes
9.00%	06/01/11	B1	$	50	$	54,250
10.00%	09/15/08	B1		85		91,800
Felcor Suites LP
Gtd. Sr. Notes
7.375%	10/01/04	B1		75		76,781
7.625%	10/01/07	B1		75		77,250
Gaylord Entertainment Co.
Sr. Notes
8.00%	11/15/13	B3		45		47,475
Hilton Hotels Corp.
Notes
7.625%	12/01/12	Ba1		100		112,375
Host Marriott LP
Gtd. Notes
9.50%	01/15/07	Ba3		250		278,125
Sr. Notes
7.125%	11/01/13	Ba3		100		102,000
ITT Corp.
Debs.
7.375%	11/15/15	Ba1		120		128,400
Notes
6.75%	11/15/05	Ba1		70		73,500
La Quinta Properties, Inc.
Notes
8.875%	03/15/11	Ba3		125		138,281
Regal Cinemas, Inc.
Gtd. Notes
9.375%	02/01/12	B2		125		141,250
Royal Caribbean Cruises Ltd.
Sr. Notes
8.00%	05/15/10	Ba2		100		109,000
8.125%	07/28/04	Ba2		55		56,787
Six Flags, Inc.
Sr. Notes
9.625%	06/01/14	B2		75		78,375
9.75%	06/15/07	B2		125		131,094
Starwood Hotels & Resorts Worldwide, Inc.
Sr. Notes
7.375%	05/01/07	Ba1		120		129,600
7.875%	05/01/12	Ba1		55		61,875

						2,134,531

Industrials — 0.2%
General Cable Corp.
Sr. Notes
9.50%	11/15/10	B2		125		133,750
Johnsondiversey Holdings, Inc.
Sr. Disc. Notes
Zero	05/15/13	B3		75		57,375
Rayovac Corp.
Sr. Sub. Notes
8.50%	10/01/13	B3		100		106,000

SEE NOTES TO FINANCIAL STATEMENTS.

B19




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Industrials (cont’d.)
Sensus Metering System, Inc.
Sr. Sub. Notes
8.625%	12/15/13	Caa1	$	100	$	102,625

						399,750

Machinery — 0.4%
Case New Holland, Inc.
Sr. Notes
9.25%	08/01/11	Ba3		100		112,000
Joy Global, Inc.
Gtd. Notes, Ser. B
8.75%	03/15/12	B2		150		167,250
Manitowoc, Inc.
Sr. Sub. Notes
10.50%	08/01/12	B2		100		113,875
Terex Corp.
Gtd. Notes
10.375%	04/01/11	B3		155		173,600
Sr. Sub. Notes
7.375%	01/15/14	B3		25		25,562
9.25%	07/15/11	B3		45		49,500

						641,787

Media — 0.1%
Moore North America Finance, Inc.
Sr. Notes
7.875%	01/15/11	B1		75		84,937
Videotron LTEE
Sr. Notes
6.875%	01/15/14	Ba3		100		103,250
Vivendi Universal SA
Sr. Notes
6.25%	07/15/08	B1		50		52,938

						241,125

Metals & Mining — 0.4%
AK Steel Corp.
Gtd. Notes
7.75%	06/15/12	B3		150		128,250
Sr. Notes
7.875%	02/15/09	B3		35		30,712
Armco, Inc.
Sr. Notes
9.00%	09/15/07	B3		65		57,688
Century Aluminum Co.
First Mtge. Notes
11.75%	04/15/08	B1		75		83,625
CSN Islands VII Corp.
Gtd. Notes
10.75%	09/12/08	NA		80		88,200
Euramax International, Inc.
Sr. Sub. Notes
8.50%	08/15/11	B2		20		21,350
Massey Energy Co.
Sr. Notes
6.625%	11/15/10	Ba3		75		76,875


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Metals & Mining (cont’d.)
Steel Dynamics, Inc.
Sr. Notes
9.50%	03/15/09	B1	$	75	$	83,250
UCAR Finance, Inc.
Gtd. Sr. Notes
10.25%	02/15/12	B3		30		34,500

						604,450

Miscellaneous Services — 0.1%
United Rentals, Inc.
Sr. Note
10.75%	04/15/08	B1		100		112,500

Office Equipment & Supplies — 0.2%
Xerox Capital Europe PLC
(United Kingdom) Gtd. Notes
5.875%	05/15/04	B1		135		136,350
Xerox Corp.
Sr. Notes
7.125%	06/15/10	B1		150		160,500

						296,850

Oil & Gas Equipment — 0.2%
Crown European Holdings SA
Notes
9.50%	03/01/11	B1		100		113,250
Pemex Project Funding Master Trust
8.625%	02/01/22	Baa1		250		276,875

						390,125

Paper & Forest Products — 0.6%
Boise Cascade Corp.
Sr. Notes
7.00%	11/01/13	Ba2		75		77,966
Cascades, Inc.
Sr. Notes
7.25%	02/15/13	Ba1		132		139,260
Georgia-Pacific Corp.
Debs
8.125%	06/15/23	Ba3		25		25,250
8.625%	04/30/25	Ba3		25		25,875
Gtd. Sr. Notes
9.375%	02/01/13	Ba2		65		74,750
Notes
8.125%	05/15/11	Ba3		45		49,500
8.875%	05/15/31	Ba3		230		253,000
Millar Western Forest Products, Ltd.
Sr. Notes
7.75%	11/15/13	B3		75		77,812
Stone Container Corp.
Sr. Notes
8.375%	07/01/12	B2		140		151,900
Stone Container Finance Co.
(Canada) Sr. Notes
11.50%	08/15/06	B2		95		99,750

SEE NOTES TO FINANCIAL STATEMENTS.

B20




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Paper & Forest Products (cont’d.)
Tembec Industries, Inc. (Canada)
Gtd. Notes
7.75%	03/15/12	Ba3	$	55	$	54,725

						1,029,788

Printing & Publishing — 0.7%
American Color Graphics, Inc.
Sr. 2nd Sec’d. Note
10.00%	06/15/10	B3		150		153,750
American Media Operations, Inc.
Gtd. Notes, Ser. B
10.25%	05/01/09	B2		20		21,325
CanWest Media, Inc. (Canada)
Sr. Notes, Ser. B
7.625%	04/15/13	B1		25		27,375
Sr. Sub. Notes
10.625%	05/15/11	B2		100		114,250
Dex Media East LLC
Sr. Sub. Notes
12.125%	11/15/12	B3		75		92,250
Dex Media West LLC
Sr. Sub. Notes
9.875%	08/15/13	B3		250		290,625
Dex Media, Inc.
Notes
8.00%	11/15/13	Caa1		70		73,500
Medianews Group, Inc.
Sr. Sub. Notes
6.875%	10/01/13	B2		75		76,313
Quebecor Media, Inc.
(Canada) Sr. Disc. Notes, Zero Coupon (until 7/15/06)
Zero	07/15/11	B2		150		132,187
Sun Media Corp. (Canada)
Gtd. Notes
7.625%	02/15/13	Ba3		175		187,250

						1,168,825

Real Estate Investment Trust — 0.3%
HMH Properties, Inc.
Sr. Notes, Ser. B
7.875%	08/01/08	Ba3		100		104,000
Intrawest Corp.
(Canada) Sr. Notes
10.50%	02/01/10	B1		200		221,000
Senior Housing Properties Trust
Sr. Notes
8.625%	01/15/12	Ba2		65		70,850
Ventas Realty LP
Sr. Notes
8.75%	05/01/09	Ba3		40		43,900
9.00%	05/01/12	Ba3		85		94,350

						534,100


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Retail — 0.7%
Amerigas Partners LP
Sr. Notes
8.875%	05/20/11	B2	$	50	$	55,000
Couche-Tard, Inc.
Sr. Sub. Notes (Canada)
7.50%	12/15/13	Ba3		100		104,750
Delhaize America, Inc.
Gtd. Notes.
8.125%	04/15/11	Ba1		175		201,250
Dillard’s, Inc.
Notes
6.43%	08/01/04	Ba3		15		15,188
Dominos, Inc.
Sr. Sub. Notes
8.25%	07/01/11	B3		25		26,781
Ferrellgas Partners LP
Sr. Notes
8.75%	06/15/12	B2		50		55,000
General Nutrition Center, Inc.
Sr. Sub. Notes
8.50%	12/01/10	B3		50		51,250
JC Penney Co., Inc.
Debs.
7.40%	04/01/37	Ba3		235		255,269
Rite Aid Corp.
Deb. Notes
6.875%	08/15/13	Caa2		50		48,000
7.70%	02/15/27	Caa2		15		13,725
Sr. Sec’d. Notes
8.125%	05/01/10	B2		150		161,250
Saks, Inc.
Gtd. Notes
7.375%	02/15/19	B1		155		157,712

						1,145,175

Rubber
Goodyear Tire & Rubber Co.
Notes
7.857%	08/15/11	B2		50		43,625

Schools — 0.1%
Kindercare Learning Center, Inc.
Sr. Sub. Notes
9.50%	02/15/09	B3		100		101,500

Semiconductor Equipment & Products
ON Semiconductor Corp.
Sr. Sec’d. Notes
13.00%	05/15/08	Caa1		50		58,125

Telecommunications — 1.8%
Acc Escrow Corp.
Sr. Notes
10.00%	08/01/11	B2		110		122,650
Crown Castle International Corp.
Sr. Notes
7.50%	12/01/13	B3		100		100,500
10.75%	08/01/11	B3		100		112,500

SEE NOTES TO FINANCIAL STATEMENTS.

B21




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CORPORATE BONDS (Continued)
Telecommunications (cont’d.)
Dobson Communications Corp.
Sr. Notes
8.875%	10/01/13	B3	$	80	$	81,000
10.875%	07/01/10	B3		25		27,250
Eircom Funding
Sr. Sub. Notes (Ireland)
8.25%	08/15/13	B1		150		166,125
Empresa Brasileira (Brazil)
Gtd. Notes
11.00%	12/15/08	B2		15		15,413
Lucent Technologies, Inc.
Debs.
6.45%	03/15/29	Caa1		50		39,313
6.50%	01/15/28	Caa1		50		39,125
Notes
5.50%	11/15/08	Caa1		155		144,150
Nextel Communications, Inc.
Sr. Notes
7.375%	08/01/15	B2		300		322,500
9.375%	11/15/09	B2		220		239,800
Nortel Networks Corp.
Sr. Gtd. Notes
4.25%	09/01/08	B3		100		94,625
Qwest Corp.
Debs.
6.875%	09/15/33	Ba3		225		213,750
Notes
7.20%	11/01/04	Ba3		65		66,462
8.875%	03/15/12	Ba3		200		229,500
Qwest Services Corp.
Notes
13.50%	12/15/10	CCC+(e)		213		258,795
Rogers Wireless Communications, Inc.
(Canada) Sec’d. Notes
9.625%	05/01/11	Ba3		95		113,525
Telus Corp.
(Canada) Notes
8.00%	06/01/11	Ba1		85		99,389
Tritel PCS, Inc.
Gtd. Notes
10.375%	01/15/11	Baa2		105		125,627
Triton PCS, Inc.
Sr. Notes
8.50%	06/01/13(b)	B2		75		80,625
Verizon Wireless Capital LLC
1.24%	05/23/05	A3		300		299,640

						2,992,264

Tobacco
DIMON, Inc.
Sr. Notes
9.625%	10/15/11	Ba3		65		72,475

Transportation/Shipping — 0.2%
Cincinnati Bell, Inc.
Sr. Sub. Notes
8.375%	01/15/14	B3		150		161,250


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)	Value (Note 2)
CORPORATE BONDS (Continued)
Transportation/Shipping (cont’d.)
Offshore Logistics, Inc.
Sr. Notes
6.125%	06/15/13	Ba2	$ 100	$	98,000
Stena AB
Sr. Notes
7.50%	11/01/13	Ba3	100		103,000

					362,250

Waste Management — 0.3%
Allied Waste North America, Inc.
Sec’d. Notes
6.50%	11/15/10	Ba3	5		5,125
Sr. Notes
7.875%	01/01/09	Ba3	150		156,375
7.875%	04/15/13	Ba3	50		54,125
8.50%	12/01/08	Ba3	295		328,187

					543,812

TOTAL CORPORATE BONDS (cost $33,420,645)					35,906,571

FOREIGN GOVERNMENT OBLIGATIONS — 2.0%
Colombian Government Bonds
9.75%	04/23/09	Ba2	220		241,450
Federal Republic of Brazil
8.00%	04/15/14	B2	289		284,693
9.25%	10/22/10	B2	85		91,375
10.00%	08/07/11	B2	55		60,775
12.00%	04/15/10	B2	300		360,000
German Government Bonds
4.25%	03/12/04	Aaa	EUR1,006		1,274,059
Panamanian Government Bonds
9.625%	02/08/11	Ba1	$ 250		288,750
Petroleos Mexicanos
9.25%	03/30/18	Baa1	250		291,250
Russian Federation
5.00%	03/31/30	Ba3	300		287,700
United Mexican States
11.375%	09/15/16	Baa2	170		240,975

TOTAL FOREIGN GOVERNMENT OBLIGATIONS (cost $3,203,608)					3,421,027


			Shares
PREFERRED STOCKS — 0.5%
Cable — 0.1%
CSC Holdings, Inc., Ser. M			2,100		220,500

Printing & Publishing — 0.1%
PRIMEDIA, Inc., Ser. D			1,250		122,500

Software — 0.3%
SAP AG, ADR(Germany)			11,500		477,940

Telecommunications
McLeodUSA, Inc., Ser. A			1,043		7,948

TOTAL PREFERRED STOCKS (cost $786,456)					828,888

SEE NOTES TO FINANCIAL STATEMENTS.

B22




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
CONVERTIBLE BONDS — 0.1%
Diversified Manufacturing Operations
Tyco International Group SA
3.125%	01/15/23	Ba2	$	50	$	68,375

Electronic Equipment & Instruments — 0.1%
Solectron Corp.
Zero	11/20/20	B1		250		141,875

TOTAL CONVERTIBLE BONDS (cost $185,154)						210,250

ASSET BACKED SECURITIES — 0.1%
Continental Airlines, Inc.
Pass-thru Certs., Ser. 96-C69
9.50%	10/15/13	B3		67		52,606
Pass-thru Certs., Ser. 98-1B
6.748%	03/15/17	Ba2		40		32,705
Deutsche Mortgage Securities, Inc.
Ser. 2002-1, Class A-12
5.75%	01/25/33	NR		78		77,646

TOTAL ASSET BACKED SECURITIES (cost $158,300)						162,957

COLLATERALIZED MORTGAGE OBLIGATIONS — 0.1%
Bear Stearns Mortgage Securities, Inc.
6.50%	12/28/23	Aaa		90		90,110
Ocwen Mortgage Loan Asset Backed Certificates
Ser. 1998-OFS3, Cl. A(b)
1.4513%	10/25/29	AAA(e)		19		19,304
Structured Asset Mortgage Investments, Inc.
7.1806%	02/25/30	Aaa		43		44,072

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(cost $149,156)						153,486

U.S. GOVERNMENT AGENCY OBLIGATIONS — 0.5%
Small Business Administration
Gtd. Notes
7.59%	01/01/20	Aaa		373		424,181
Small Business Investment Cos.
8.017%	02/10/10	Aaa		477		525,760

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(cost $849,682)						949,941


			Principal Amount (000)
U.S. GOVERNMENT SECURITIES — 6.2%
United States Treasury Bonds
5.375%	02/15/31		$	200		208,570
7.50%	11/15/16			3,200		4,074,000
United States Treasury Notes
1.625%	10/31/05			1,200		1,198,125
4.25%	11/15/13			150		149,836
United States Treasury, P/O
Zero	02/15/22			1,000		372,771
United States Treasury, TIPS
3.375%	01/15/07			1,460		1,581,198
3.625%	01/15/08			2,634		2,912,895

TOTAL U.S. GOVERNMENT SECURITIES (cost $10,379,400)						10,497,395


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
MUNICIPAL BONDS — 2.9%
Brazos Texas Higher Education Authority, Inc.
Ser. A-3
1.16%	07/01/36	Aaa	$	500	$	500,000
California State Rev. Antic. Wts.,
Ser. A
2.00%	06/16/04	MIG1		300		300,642
Florida State Board of Education
Ser. A
5.00%	06/01/32	Aa2		500		513,280
Golden State Tobacco Securitization Corp.
Ser. 2003-A-1
6.25%	06/01/33	Baa2		300		286,800
Massachusetts State Water Resources Authority
Ser. J
5.00%	08/01/32	Aaa		250		256,017
Michigan St. Bldg. Auth. Rev.
5.25%	10/15/11	Aaa		400		456,444
New Jersey St. Trans. Trust Fd. Auth.
5.00%	06/15/12	Aa3		600		665,928
San Antonio, Texas Water Revenue
5.00%	05/15/25	Aaa		500		513,215
South Carolina State Highway
Ser. B
5.00%	04/01/17	Aaa		800		867,176
Tobacco Settlement Financing Corp.
5.875%	05/15/39	Baa2		290		252,781
6.375%	06/01/32	Baa2		250		239,353

TOTAL MUNICIPAL BONDS (cost $4,673,615)						4,851,636

MORTGAGE BACKED SECURITIES — 6.6%
Federal Home Loan Mortgage Corp.
1.6125%	11/15/30(b)			87		87,062
Federal National Mortgage Assn.
4.00%	08/01/18			974		950,530
4.00%	08/01/18			2,527		2,465,994
4.00%	08/01/18			951		927,948
4.191%	05/01/36(b)			402		408,835
4.50%	08/01/33			595		569,973
5.00%	02/01/18			21		21,917
5.00%	02/01/18			48		48,822
6.00%	07/01/14			144		151,483
6.00%	05/01/17			114		119,798
6.188%	08/01/29(b)			106		109,564
6.50%	06/01/18			298		312,507
6.50%	10/01/21			278		291,817
6.50%	11/01/21			260		272,247
6.50%	12/01/32			228		238,575
7.104%	08/01/09			961		1,080,594
Government National Mortgage Assn.
4.375%	04/20/27(b)			248		253,643
4.75%	08/20/24(b)			18		18,828
5.00%	11/20/29(b)			132		135,199
5.625%	10/20/27(b)			89		91,903
7.50%	02/20/30			706		786,417
8.00%	01/16/30			1,367		1,483,579
8.00%	08/20/31			72		78,240

SEE NOTES TO FINANCIAL STATEMENTS.

B23




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Interest Rate	Maturity Date	Moody’s Rating (Unaudited)	Principal Amount (000)		Value (Note 2)
MORTGAGE BACKED SECURITIES — Continued
Government National Mortgage Assn. (cont’d)
8.50%	02/20/26		$	4	$	4,382
8.50%	04/20/26			4		4,262
8.50%	10/20/29			47		50,727
8.50%	07/15/30			57		61,717
8.50%	09/20/30			23		24,616
8.50%	04/20/31			93		100,592

TOTAL MORTGAGE BACKED SECURITIES (cost $10,784,152)						11,151,771

TOTAL LONG-TERM INVESTMENTS (cost $119,942,382)						136,102,645

SHORT-TERM INVESTMENTS — 19.7%
CORPORATE BONDS — 7.9%
Chemicals — 0.8%
E.I. du Pont de Nemours & Co.
1.05%	01/26/04	P-1		1,400		1,398,979

Diversified Financials — 5.9%
Barclays US Funding Corp.
1.065%	01/20/04	P-1		900		899,494
1.075%	03/09/04	P-1		500		498,985
Danske Corp.
1.09%	03/03/04	P-1		1,000		998,123
HBOS Treasury Services PLC
1.10%	02/24/04	P-1		600		599,010
1.10%	04/13/04	P-1		800		797,482
Rabobank USA Financial Corp.
1.06%	01/30/04	P-1		1,500		1,498,719
Royal Bank Of Scotland PLC
1.085%	01/20/04	P-1		1,500		1,499,141
Shell Finance UK PLC
1.055%	01/15/04	P-1		1,300		1,299,467
UBS Finance, Inc.
1.06%	01/21/04	P-1		1,190		1,189,299
Westpac Capital Corp.
1.08%	04/07/04	P-1		700		697,963

						9,977,683

Energy — 1.0%
General Electric Capital Corp.
1.08%	04/08/04	P-1		100		99,706
1.09%	04/12/04	P-1		1,500		1,495,368

						1,595,074

Food Products — 0.2%
Kraft Foods, Inc.
1.97188%	02/27/04	P-1		400		400,000

TOTAL CORPORATE BONDS (cost $13,371,736)						13,371,736

U.S. GOVERNMENT SECURITIES — 6.7%
Federal Home Loan Mortgage Corp.
1.085%	03/01/04			1,400		1,397,468
Federal National Mortgage Assn.
1.00%	02/04/04			4,500		4,495,750


Interest Rate	Maturity Date	Principal Amount (000)	Value (Note 2)
U.S. GOVERNMENT SECURITIES (Continued)
United States Treasury Bills
0.01%	06/10/04	$1,200	$	1,194,687
0.885%	03/18/04	125		124,764
0.893%	03/11/04	500		499,132
0.895%	03/11/04	330		329,426
0.955%	06/17/04	900		895,989
0.96%	06/10/04	2,200		2,190,564
1.01%	04/22/04	250		249,214

TOTAL U.S. GOVERNMENT SECURITIES (cost $11,376,994)				11,376,994

REPURCHASE AGREEMENT — 1.6%
State Street Bank & Trust Co.
0.50%	01/02/04(f)
(cost $2,714,334)		2,714		2,714,334


		Shares
MUTUAL FUND — 3.5%
Dryden Core Investment Fund — Taxable Money Market Series
(cost $5,916,945)		5,916,945		5,916,945


TOTAL SHORT-TERM INVESTMENTS (cost $33,380,009)				33,380,009

OUTSTANDING OPTION PURCHASED(a)
		Contracts
Put Options
Eurodollar Futures, expiring 10/13/05 @ $93.75
(cost $916)		59		369

TOTAL OUTSTANDING OPTION PURCHASED (cost $916)				369

TOTAL INVESTMENTS BEFORE OUTSTANDING OPTIONS WRITTEN AND SHORT SALES — 100.0% (cost $153,323,307; Note 6)				169,483,023


		Principal Amount (000)
INVESTMENTS SOLD SHORT — (3.0%)
United States Treasury Notes
3.625%	05/15/13	4,800		(4,613,813	)
4.25%	08/15/13	500		(500,625	)

TOTAL INVESTMENTS SOLD SHORT (proceeds received 5,055,639)				(5,114,438	)

OUTSTANDING OPTIONS WRITTEN(a) — (0.1%)
		Contracts
Call Options — (0.1%)
LIBOR, expiring 9/23/05 @ $4.0		600,000		(6,914	)
Swap Option 3 month LIBOR, expiring 1/07/05 @ $5.0		200,000		(7,755	)
Swap Option 3 month LIBOR, expiring 10/07/04 @ $4.0		1,800,000		(11,633	)

SEE NOTES TO FINANCIAL STATEMENTS.

B24




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


OUTSTANDING OPTIONS WRITTEN(a) (Continued)	Contracts	Value (Note 2)
Call Options (cont’d.)
Swap Option 3 month LIBOR, expiring 9/23/05 @ $4.0	2,900,000	$	(33,417	)
Swap Option, expiring 3/03/04 @ 3.25%	2,800,000		(5,342	)
Swap Option, expiring 5/03/04 @ $4.0	4,300,000		(40,747	)

			(105,808	)

Put Options
Swap Option 3 month LIBOR, expiring 1/07/05 @ $7.0	200,000		(945	)
Swap Option 3 month LIBOR, expiring 10/07/04 @ $6.0	1,800,000		(24,044	)
Swap Option, expiring 9/23/05 @ $7.0	600,000		(7,732	)

			(32,721	)

TOTAL OUTSTANDING OPTIONS WRITTEN (premiums received $275,482)		$	(138,529	)


	Value (Note 2)
TOTAL INVESTMENTS NET OF OUTSTANDING OPTIONS WRITTEN AND INVESTMENTS SOLD SHORT — 96.9% (cost $147,992,186)	$	164,230,056
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS(h)		(26,333	)
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(g)		22,888
OTHER ASSETS IN EXCESS OF LIABILITIES — 3.1%		5,326,654

TOTAL NET ASSETS — 100%	$	169,553,265

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt
MTN		Medium Term Note
NR		Not Rated by Moody’s or Standard & Poor’s
TBA		Securities purchased on a forward commitment basis
TIPS		U.S. Treasury Inflation Protected Security
P/O		Principal Only

(a)	Non-income producing security.

(b)	Rate shown reflects current rate of variable instruments.

(c)	Issuer in default.

(d)	Security segregated as collateral for futures contracts.

(e)	Standard & Poor’s rating.

(f)	State Street Repurchase Agreement, repurchase price $2,714,410 due 1/02/04. The value of the collateral including accrued interest was $2,775,627. The collateral consists of US Treasury or Federal Agency Obligations.

(g)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
6	Euribor	Dec 04	$	1,837,630	$	1,840,941	$	3,311
55	German 10 Yr Bonds	Mar 04		7,768,272		7,847,619		79,347
9	LIBOR	Sep 04		1,912,217		1,921,481		9,264
2	LIBOR	Mar 04		431,426		428,741		(2,685	)
2	LIBOR	Jun 04		430,620		427,980		(2,640	)
6	LIBOR	Mar 05		1,293,451		1,276,825		(16,626	)
131	U.S. Treasury 10 Yr Notes	Mar 04		14,544,812		14,706,797		161,985
2	U.S. Treasury 5 Yr Notes	Mar 04		220,126		223,250		3,124

							$	235,080

SEE NOTES TO FINANCIAL STATEMENTS.

B25




		*DIVERSIFIED CONSERVATIVE GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

SEE NOTES TO FINANCIAL STATEMENTS.

(h)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Forward Foreign Currency Contracts	Value at Settlement Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Sold:
Euro expiring 1/07/04	$	1,496,413	$	1,529,712	$	(33,299	)
Pound Sterling expiring 1/23/04		60,452		62,542		(2,090	)

						(35,389	)
Bought:
Euro expiring 1/07/04		279,735		288,791		9,056

					$	(26,333	)

B26




		*EQUITY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.7%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Aerospace/Defense — 2.0%
Boeing Co.	469,266	$	19,774,869
General Dynamics Corp.	11,127		1,005,770
Honeywell International, Inc.	424,628		14,195,314
Lockheed Martin Corp.	664,102		34,134,843
Northrop Grumman Corp.	27,356		2,615,234
Raytheon Co.	19,911		598,126
United Technologies Corp.	103,650		9,822,910

			82,147,066

Air Freight & Couriers — 0.2%
FedEx Corp.	12,219		824,782
United Parcel Service, Inc. (Class “B” Stock)	86,774		6,469,002

			7,293,784

Airlines
Southwest Airlines Co.	7,763		125,295

Automobiles — 0.6%
Ford Motor Co.	75,154		1,202,464
General Motors Corp.	45,114		2,409,087
Harley-Davidson, Inc.(b)	394,290		18,740,604

			22,352,155

Beverages — 1.1%
Anheuser-Busch Cos., Inc.	109,212		5,753,288
Coca-Cola Co.	189,297		9,606,823
PepsiCo, Inc.	525,602		24,503,565
The Pepsi Bottling Group, Inc.	126,482		3,058,335

			42,922,011

Biotechnology — 2.5%
Amgen, Inc.(a)	1,026,110		63,413,598
Biogen Idec, Inc.(a)	28,992		1,066,326
Chiron Corp.(a)	24,560		1,399,674
Gilead Sciences, Inc.(a)(b)	351,600		20,442,024
MedImmune, Inc.(a)	530,964		13,486,486

			99,808,108

Building & Building Products — 0.2%
American Standard Cos., Inc.(a)	76,300		7,683,410
Cavco Industries, Inc.(a)	258		6,192
KB HOME	4,229		306,687
Masco Corp.	29,380		805,306
Pulte Homes, Inc.	5,359		501,709

			9,303,304

Capital Markets — 2.1%
Goldman Sachs Group, Inc.(b)	436,090		43,055,166
Merrill Lynch & Co., Inc.	712,986		41,816,629

			84,871,795

Chemicals — 0.4%
Air Products & Chemicals, Inc.	30,934		1,634,243
Dow Chemical Co.	69,443		2,886,746
E.I. du Pont de Nemours & Co.	79,513		3,648,852
Ecolab, Inc.	22,312		610,679
International Flavors & Fragrances, Inc.	20,569		718,269
Millennium Chemicals, Inc.	255,200		3,235,936
PPG Industries, Inc.	12,374		792,183


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Chemicals (cont’d.)
Praxair, Inc.	57,006	$	2,177,629
Rohm & Haas Co.	25,788		1,101,406

			16,805,943

Commercial Banks — 4.7%
Bank of America Corp.	321,049		25,821,971
Bank One Corp.	796,225		36,299,898
Comerica, Inc.	139,500		7,820,370
Fifth Third Bancorp	180,036		10,640,128
FleetBoston Financial Corp.	384,951		16,803,111
Golden West Financial Corp.	14,834		1,530,720
Mellon Financial Corp.	145,115		4,659,643
SunTrust Banks, Inc.	26,845		1,919,417
The Bank of New York Co., Inc.	673,796		22,316,123
U.S. Bancorp	603,513		17,972,617
Wachovia Corp.	254,054		11,836,376
Washington Mutual, Inc.	45,546		1,827,306
Wells Fargo & Co.	485,936		28,616,771

			188,064,451

Commercial Services & Supplies — 0.7%
Automatic Data Processing, Inc.	46,463		1,840,399
Avery Dennison Corp.	170,737		9,564,687
Cendant Corp.(a)	116,292		2,589,823
Certegy, Inc.	15,358		503,742
Cintas Corp.	21,122		1,058,846
Concord EFS, Inc.(a)	46,831		694,972
Fiserv, Inc.(a)	31,367		1,239,310
H&R Block, Inc.	16,581		918,090
Pitney Bowes, Inc.	21,195		860,941
Waste Management, Inc.	245,410		7,264,136

			26,534,946

Communications Equipment — 2.6%
ADC Telecommunications, Inc.(a)	1,881,600		5,588,352
Advanced Fibre Communications, Inc.(a)	65,846		1,326,797
Avaya, Inc.(a)	30,700		397,258
Cisco Systems, Inc.(a)	2,975,755		72,281,089
Corning, Inc.(a)	157,937		1,647,283
Lucent Technologies, Inc.(a)	231,960		658,766
Motorola, Inc.	942,576		13,262,044
Nokia Oyj, ADR (Finland)(b)	359,100		6,104,700
QUALCOMM, Inc.	56,979		3,072,878

			104,339,167

Computers & Peripherals — 3.2%
Dell, Inc.(a)	666,282		22,626,937
EMC Corp.(a)	224,643		2,902,388
Hewlett-Packard Co.	2,043,125		46,930,581
International Business Machines Corp.	595,708		55,210,217
Lexmark International, Inc.(a)	11,891		935,108
Sun Microsystems, Inc.(a)	274,199		1,231,154

			129,836,385

Consumer Finance — 1.6%
American Express Co.	1,231,352		59,388,107
SLM Corp.	86,531		3,260,488

			62,648,595

SEE NOTES TO FINANCIAL STATEMENTS.

B27




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Containers & Packaging — 1.0%
Bemis Co., Inc.	5,107	$	255,350
Pactiv Corp.(a)	27,173		649,435
Smurfit-Stone Container Corp.(a)	299,900		5,569,143
Temple-Inland, Inc.	537,500		33,685,125

			40,159,053

Diversified Financial Services — 3.7%
Bear Stearns Cos., Inc.	8,811		704,439
Capital One Financial Corp.	48,829		2,992,729
Citigroup, Inc.	1,627,187		78,983,657
Countrywide Financial Corp.	16,601		1,259,161
Fannie Mae	131,529		9,872,567
Federated Investors, Inc. (Class “B” Stock)	24,506		719,496
Freddie Mac	183,472		10,700,087
J.P. Morgan Chase & Co.	478,555		17,577,325
MBNA Corp.	487,101		12,104,460
Morgan Stanley	120,823		6,992,027
PNC Financial Services Group	15,282		836,384
State Street Corp.	111,086		5,785,359

			148,527,691

Diversified Telecommunication Services — 0.5%
ALLTEL Corp.	22,718		1,058,205
BellSouth Corp.	164,297		4,649,605
SBC Communications, Inc.	271,875		7,087,781
Verizon Communications, Inc.	242,261		8,498,516

			21,294,107

Electric Utilities — 2.2%
AES Corp.(a)	55,883		527,535
Ameren Corp.	13,925		640,550
American Electric Power Co., Inc.	18,486		564,008
Consolidated Edison, Inc.	19,945		857,834
Constellation Energy Group, Inc.	21,344		835,831
Dominion Resources, Inc.	37,276		2,379,327
DTE Energy Co.	21,830		860,102
Entergy Corp.	29,006		1,657,113
Exelon Corp.	342,847		22,751,327
FirstEnergy Corp.(b)	786,431		27,682,371
FPL Group, Inc.	23,776		1,555,426
PG&E Corp.(a)	55,640		1,545,123
Pinnacle West Capital Corp.	14,047		562,161
PPL Corp.	20,492		896,525
Progress Energy, Inc.	224,183		10,146,522
Public Service Enterprise Group, Inc.	31,012		1,358,326
Southern Co.	82,335		2,490,634
TXU Corp.	549,600		13,036,512

			90,347,227

Electrical Equipment — 0.1%
Emerson Electric Co.	26,480		1,714,580
Molex, Inc. (Class “A” Stock)	33,408		980,859

			2,695,439

Electronic Equipment & Instruments — 1.1%
Agilent Technologies, Inc.(a)(b)	1,177,164		34,420,275


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Electronic Equipment & Instruments (Cont’d.)
Flextronics International, Ltd. (Singapore)(a)	454,800	$	6,749,232
Jabil Circuit, Inc.(a)	33,828		957,332
Sanmina-SCI Corp.(a)	12,075		152,266
Waters Corp.(a)	31,290		1,037,577

			43,316,682

Energy Equipment & Services —2.3%
BJ Services Co.(a)	876,900		31,480,710
ENSCO International, Inc.	301,300		8,186,321
Halliburton Co.	80,024		2,080,624
Nabors Industries, Ltd. (Barbados)(a)	25,965		1,077,547
Noble Corp.(a)	32,593		1,166,178
Schlumberger, Ltd.	649,540		35,542,829
Weatherford International, Ltd.(a)	348,600		12,549,600

			92,083,809

Food & Staples Retailing — 3.5%
Costco Wholesale Corp.(a)(b)	919,486		34,186,490
Kroger Co.(a)	126,421		2,340,053
Safeway, Inc.(a)	658,894		14,436,367
SYSCO Corp.	61,052		2,272,966
Wal-Mart Stores, Inc.(b)(e)	1,182,931		62,754,490
Walgreen Co.	51,350		1,868,113
Whole Foods Market, Inc.(b)	353,400		23,723,742

			141,582,221

Food Products — 0.3%
H.J. Heinz & Co.	58,924		2,146,601
Hershey Foods Corp.	23,168		1,783,704
Kellogg Co.	195,406		7,441,061
Wm. Wrigley Jr. Co.	35,877		2,016,646

			13,388,012

Gas Utilities — 0.2%
KeySpan Corp.	27,911		1,027,125
Kinder Morgan, Inc.	19,094		1,128,455
NiSource, Inc.	234,800		5,151,512

			7,307,092

Health Care Equipment & Supplies — 1.2%
Boston Scientific Corp.(a)	98,122		3,606,965
Guidant Corp.	194,100		11,684,820
Medtronic, Inc.	610,717		29,686,953
Smith & Nephew PLC, ADR (United Kingdom)	8,169		342,445
Zimmer Holdings, Inc.(a)	33,713		2,373,395

			47,694,578

Health Care Providers & Services — 0.8%
Cardinal Health, Inc.	81,750		4,999,830
Caremark Rx, Inc.(a)(b)	552,800		14,002,424
HCA-The Healthcare Co.	70,669		3,035,940
Quest Diagnostics, Inc.(a)	15,275		1,116,755
UnitedHealth Group, Inc.	91,213		5,306,773
WellPoint Health Networks, Inc.(a)	18,292		1,774,141

			30,235,863

SEE NOTES TO FINANCIAL STATEMENTS.

B28




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Hotels, Restaurants & Leisure — 2.5%
Brinker International, Inc.(a)	500,100	$	16,583,316
Carnival Corp.	56,699		2,252,651
Darden Restaurants, Inc.	31,367		659,962
International Game Technology	31,437		1,122,301
Marriott International, Inc. (Class “A” Stock)(b)	245,872		11,359,286
McDonald’s Corp.	697,288		17,313,661
MGM Mirage, Inc.	168,000		6,318,480
Starbucks Corp.(a)	456,800		15,101,808
Wendy’s International, Inc.	746,000		29,273,040

			99,984,505

Household Durables — 0.3%
American Greetings Corp. (Class “A” Stock)(a)	7,455		163,041
Black & Decker Corp.	7,881		388,691
Centex Corp.	5,170		556,550
Fortune Brands, Inc.	13,546		968,404
Leggett & Platt, Inc.	18,031		390,010
Maytag Corp.	7,320		203,862
Newell Rubbermaid, Inc.	357,599		8,142,529
Snap-on, Inc.	5,751		185,412
Stanley Works	8,464		320,532
Tupperware Corp.	6,087		105,549
Whirlpool Corp.	6,054		439,823

			11,864,403

Household Products — 1.3%
Clorox Co.	59,349		2,881,987
Colgate-Palmolive Co.	96,078		4,808,704
Kimberly-Clark Corp.	318,498		18,820,047
Procter & Gamble Co.	241,240		24,095,051

			50,605,789

Industrial Conglomerates — 4.5%
3M Co.	421,904		35,874,497
Companhia Vale do Rio Doce, ADR (Brazil)(b)	941,500		55,077,750
General Electric Co.(b)	2,217,400		68,695,052
Tyco International, Ltd.	813,478		21,557,167

			181,204,466

Insurance — 3.4%
ACE, Ltd.	66,646		2,760,477
AFLAC, Inc.	81,727		2,956,883
Allstate Corp.	103,010		4,431,490
Ambac Financial Group, Inc.	20,979		1,455,733
American International Group, Inc.	1,102,795		73,093,253
Aon Corp.	27,911		668,189
Berkshire Hathaway, Inc. (Class “A” Stock)(a)	69		5,813,250
Chubb Corp.	29,310		1,996,011
Hartford Financial Services Group, Inc.	25,600		1,511,168
Loews Corp.	432,000		21,362,400
Marsh & McLennan Cos., Inc.	175,254		8,392,914
MetLife, Inc.	167,957		5,655,112
Principal Financial Group, Inc.	30,952		1,023,583
Progressive Corp.	19,459		1,626,578


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Insurance (Cont’d.)
SAFECO Corp.	32,897	$	1,280,680
Travelers Property Casualty Corp. (Class “B” Stock)	187,946		3,189,444

			137,217,165

Internet & Catalog Retail — 1.5%
eBay, Inc.(a)(b)	384,576		24,839,764
InterActiveCorp(a)(b)	998,575		33,881,650

			58,721,414

Internet Software & Services — 0.8%
Yahoo!, Inc.(a)	716,765		32,376,275

IT Consulting & Services — 0.9%
Accenture, Ltd. (Class “A” Stock) (Bermuda)(a)	18,580		489,026
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	27,686		1,507,779
Electronic Data Systems Corp.	577,891		14,181,445
First Data Corp.	119,157		4,896,161
Paychex, Inc.	365,188		13,584,994
Unisys Corp.(a)	29,252		434,392

			35,093,797

Leisure Equipment & Products
Mattel, Inc.	43,840		844,797

Machinery — 1.0%
Caterpillar, Inc.	30,832		2,559,673
Danaher Corp.	66,889		6,137,066
Deere & Co.	42,375		2,756,494
Dover Corp.	46,315		1,841,021
Eaton Corp.	99,386		10,731,700
Illinois Tool Works, Inc.	36,471		3,060,281
Ingersoll-Rand Co. (Class “A” Stock) (Bermuda)	14,067		954,868
Navistar International Corp.(a)	184,400		8,830,916
PACCAR, Inc.	54,800		4,664,576

			41,536,595

Media — 5.1%
Clear Channel Communications, Inc.(b)	599,294		28,064,938
Comcast Corp. (Class “A” Stock)(a)	474,556		15,598,656
Comcast Corp. (Special Class “A” Stock)(a)	456,164		14,268,810
Gannett Co., Inc.	21,066		1,878,245
Hughes Electronics Corp.(a)	862,401		14,272,737
Liberty Media Corp. (Class “A” Stock)(a)	726,001		8,632,152
McGraw Hill, Inc.	13,944		974,964
New York Times Co. (Class “A” Stock)	23,393		1,117,951
News Corp., Ltd., ADR (Australia)	251,000		7,592,752
Omnicom Group, Inc.	28,244		2,466,548
Time Warner, Inc.(a)	401,337		7,220,053
Tribune Co.	32,171		1,660,024
Univision Communications, Inc. (Class “A” Stock)(a)(b)	525,000		20,837,250
Viacom, Inc. (Class “B” Stock)	1,743,903		77,394,415

SEE NOTES TO FINANCIAL STATEMENTS.

B29




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (Cont’d.)
Walt Disney Co.	136,016	$	3,173,253

			205,152,748

Metals & Mining — 4.4%
Alcoa, Inc.	1,497,585		56,908,230
Alumina, Ltd. ADR (Australia)	1,177,600		23,610,880
Barrick Gold Corp. (Canada)	368,653		8,372,109
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	1,343,407		56,597,737
Newmont Mining Corp.	653,095		31,746,948

			177,235,904

Multi-line Retail — 0.2%
Family Dollar Stores, Inc.	18,674		670,023
Federated Department Stores, Inc.	32,202		1,517,680
Kohl’s Corp.(a)	32,794		1,473,762
Sears, Roebuck & Co.	8,148		370,653
Target Corp.	151,357		5,812,109

			9,844,227

Multi-Utilities
Duke Energy Corp.	92,855		1,898,885

Oil & Gas — 5.8%
Apache Corp.(b)	301,599		24,459,679
Burlington Resources, Inc.	34,661		1,919,526
ChevronTexaco Corp.	255,525		22,074,805
ConocoPhillips, Inc.	60,383		3,959,313
Devon Energy Corp.	40,863		2,339,815
ExxonMobil Corp.(e)	1,308,454		53,646,614
GlobalSantaFe Corp. (Cayman Islands)	287,300		7,133,659
Nexen, Inc. (Canada)	320,700		11,580,477
Suncor Energy, Inc. (Canada)(b)	1,381,200		34,737,087
TotalFinaElf SA, ADR (France)	754,200		69,771,042
Unocal Corp.	42,870		1,578,902

			233,200,919

Paper & Forest Products — 0.6%
Bowater, Inc.	107,800		4,992,218
International Paper Co.	358,024		15,434,415
Louisiana-Pacific Corp.(a)	93,900		1,678,932
MeadWestvaco Corp.	26,602		791,409
Weyerhaeuser Co.	26,974		1,726,336

			24,623,310

Personal Products — 0.9%
Avon Products, Inc.	341,700		23,061,333
Estee Lauder Cos., Inc. (Class “A” Stock)	308,300		12,103,858
Gillette Co.	47,127		1,730,975

			36,896,166

Pharmaceuticals — 9.7%
Abbott Laboratories	158,102		7,367,553
Allergan, Inc.(b)	249,200		19,141,052
AstraZeneca PLC, ADR (United Kingdom)(b)	462,600		22,380,588
Bristol-Myers Squibb Co.	39,842		1,139,481
Elan Corp. PLC, ADR (Ireland)(a)	854,200		5,885,438


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Pharmaceuticals (Cont’d.)
Eli Lilly & Co.	91,213	$	6,415,010
Forest Laboratories, Inc.(a)(b)	210,272		12,994,810
GlaxoSmithKline PLC, ADR (United Kingdom)	103,300		4,815,846
Johnson & Johnson	495,382		25,591,434
Medco Health Solutions, Inc.(a)	7,646		259,888
Merck & Co., Inc.	170,262		7,866,104
Novartis AG, ADR (Switzerland)(b)	535,800		24,587,862
Pfizer, Inc.(e)	3,682,400		130,099,192
Roche Holdings AG, ADR (Switzerland)	292,300		29,484,067
Schering-Plough Corp.	839,600		14,600,644
Sepracor, Inc.(a)(b)	703,400		16,832,362
Teva Pharmaceutical Industries, Ltd., ADR (Israel)(b)	863,500		48,969,085
Watson Pharmaceuticals, Inc.(a)	21,453		986,838
Wyeth	185,466		7,873,032

			387,290,286

Real Estate Investment Trust — 0.1%
iStar Financial, Inc.	77,000		2,995,300

Road & Rail — 0.4%
Burlington Northern Santa Fe Corp.	70,552		2,282,357
Canadian National Railway Co. (Canada)	144,500		9,143,960
Union Pacific Corp.	42,172		2,930,111

			14,356,428

Semiconductor & Semiconductor Equipment — 5.6%
Altera Corp.(a)	834,300		18,938,610
Analog Devices, Inc.	58,185		2,656,145
Applied Materials, Inc.(a)(b)	891,957		20,024,435
Fairchild Semiconductor International, Inc.(a)	25,054		625,598
Infineon Technologies AG, ADR (Germany)(a)	432,900		5,935,059
Intel Corp.	3,263,521		105,085,376
KLA-Tencor Corp.(a)	374,503		21,972,091
Linear Technology Corp.	13,914		585,362
Maxim Integrated Products, Inc.	45,421		2,261,966
Micron Technology, Inc.(a)	52,469		706,758
STMicroelectronics NV (Switzerland)	240,000		6,482,400
Texas Instruments, Inc.	1,284,742		37,745,720
Xilinx, Inc.(a)	47,327		1,833,448

			224,852,968

Software — 4.2%
BMC Software, Inc.(a)	567,154		10,577,422
Electronic Arts, Inc.(a)	244,123		11,664,197
Intuit, Inc.(a)	47,411		2,508,516
Microsoft Corp.(b)	3,871,558		106,622,707
Novell, Inc.(a)	36,778		386,904
Oracle Corp.(a)	1,144,775		15,111,030
PeopleSoft, Inc.(a)	48,535		1,106,598
SAP AG, ADR (Germany)(b)	259,000		10,764,040
Siebel Systems, Inc.(a)	56,271		780,479
VERITAS Software Corp.(a)	258,036		9,588,618

			169,110,511

SEE NOTES TO FINANCIAL STATEMENTS.

B30




		*EQUITY PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Specialty Retail — 1.6%
Bed Bath & Beyond, Inc.(a)	58,498	$	2,535,888
Best Buy Co., Inc.	529,572		27,664,841
CarMax, Inc.(a)(b)	194,800		6,025,164
Home Depot, Inc.	566,450		20,103,311
Lowe’s Cos., Inc.	96,442		5,341,923
The Gap, Inc.	74,744		1,734,808

			63,405,935

Textiles & Apparel
NIKE, Inc. (Class “B” Stock)	22,149		1,516,321

Tobacco — 1.0%
Altria Group, Inc.	740,055		40,273,793

Wireless Telecommunication Services — 1.1%
AT&T Wireless Services, Inc.(a)	1,181,744		9,442,135
Nextel Communications, Inc. (Class “A” Stock)(a)	112,539		3,157,844
Vodafone Group PLC, ADR (United Kingdom)(b)	1,245,838		31,195,783

			43,795,762

TOTAL LONG-TERM INVESTMENTS (cost $3,312,387,828)			3,841,583,448


			Value (Note 2)
	Shares		Value (Note 2)
SHORT-TERM INVESTMENTS — 15.1%
Mutual Fund — 14.1%
Dryden Core Investment Fund —Taxable Money Market Series (Note 4)(c)		564,489,456	$	564,489,456

Repurchase Agreement — 1.0%	Principal Amount (000)
State Street Bank & Trust Co., 0.50%, 1/02/04(d)	$	40,472		40,472,130

TOTAL SHORT-TERM INVESTMENTS (cost $604,961,586)				604,961,586

TOTAL INVESTMENTS — 110.8% (cost $3,917,349,414; Note 6)				4,446,545,034
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(f)				47,210
LIABILITIES IN EXCESS OF OTHER ASSETS — (10.8)%				(433,441,269	)

NET ASSETS — 100%			$	4,013,150,975

SEE NOTES TO FINANCIAL STATEMENTS.

B31

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $414,347,398; cash collateral $437,748,240 was received with which the portfolio purchased securities.

(c)	Represents security purchased with cash collateral received for securities on loan.

(d)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $40,473,255 due 1/2/04. The value of the collateral including accrued interest was $41,289,000. Collateralized by United States Treasury or federal agency obligations.

(e)	Security segregated as collateral for futures contracts.

(f)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
64	S&P 500 Index	Mar 04	$	17,252,150	$	17,769,600	$	517,450




		*GLOBAL PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.7%
COMMON STOCKS	Shares	Value (Note 2)
Australia — 2.7%
Amcor, Ltd.(b)	763,300	$	4,750,396
BHP Billiton, Ltd.	880,067		8,083,025
Rio Tinto, Ltd.	174,846		4,900,643

			17,734,064

Brazil — 1.1%
Companhia de Bebidas das Americas, ADR	132,300		3,374,973
Unibanco — Uniao de Bancos Brasileiros SA, ADR(b)	164,900		4,114,255

			7,489,228

Finland — 0.4%
Nokia Oyj	142,400		2,462,540

France — 2.2%
Total SA	77,385		14,387,657

Republic of Germany — 4.3%
Deutsche Boerse AG	144,598		7,906,553
SAP AG, ADR(b)	290,200		12,060,712
Siemens AG	111,700		8,946,697

			28,913,962

Hong Kong — 1.2%
Cosco Pacific, Ltd.	6,326,000		8,311,087

Ireland — 1.5%
Anglo Irish Bank Corp., PLC	631,400		9,963,174

Israel — 1.2%
Teva Pharmaceutical Industries, Ltd., ADR(b)	136,500		7,740,915

Italy — 2.1%
Eni SpA	393,500		7,425,268
Riunione Adriatica di Sicurta SpA	398,843		6,791,592

			14,216,860

Japan — 10.3%
Aoyama Trading Co., Ltd.	608,300		12,033,181
Canon, Inc.	122,000		5,680,508
Mitsubishi Corp.(b)	1,389,000		14,723,374
Mitsubishi Tokyo Financial Group, Inc.	320		2,496,221
Mitsui Mining & Smelting Co., Ltd.	2,221,000		9,222,217
Sumitomo Mitsui Financial Group, Inc.	435		2,317,673
Sumitomo Realty & Development Co., Ltd.	1,419,000		12,499,169
Taisei Corp.	2,729,000		9,981,973

			68,954,316

Netherlands — 1.0%
ING Groep NV	296,300		6,910,419

South Korea — 1.6%
Samsung Electronics Co., Ltd.	27,800		10,522,702

Spain — 2.2%
Banco Popular Espanol SA(b)	121,649		7,257,808
Telefonica SA(a)	501,782		7,367,224

			14,625,032

Switzerland — 4.0%
Novartis AG, ADR	174,700		8,016,983


COMMON STOCKS
(Continued)	Shares	Value (Note 2)
Switzerland (cont’d.)
Roche Holding AG, ADR	96,300	$	9,713,704
UBS AG	126,800		8,684,018

			26,414,705

Taiwan — 1.3%
Taiwan Semiconductor Manufacturing Co., Ltd.(a)	4,655,880		8,708,347

United Kingdom — 12.5%
AstraZeneca PLC, ADR(b)	147,100		7,116,698
Exel PLC	1,204,502		15,923,838
GKN PLC	1,303,246		6,229,130
HSBC Holdings PLC	541,400		8,509,470
Reckitt Benckiser PLC	243,900		5,518,850
Royal Bank of Scotland Group PLC	239,789		7,065,596
Signet Group PLC	4,512,100		8,319,662
Tesco PLC	1,860,900		8,586,407
Vodafone Group PLC	6,317,854		15,664,232

			82,933,883

United States — 46.1%
Air Products and Chemicals, Inc.	126,900		6,704,127
Allergan, Inc.(b)	80,400		6,175,524
Amgen, Inc.(a)	144,800		8,948,640
Anheuser-Busch Cos., Inc.	62,400		3,287,232
Bank of New York Co., Inc.	251,300		8,323,056
Bed Bath & Beyond, Inc.(a)	288,100		12,489,135
BJ Services Co.(a)	212,300		7,621,570
Boise Cascade Corp.	127,400		4,186,364
Brinker International, Inc.(a)(b)	150,800		5,000,528
Caremark Rx, Inc.(a)(b)	180,400		4,569,532
CarMax, Inc.(a)	12,400		383,532
Cisco Systems, Inc.(a)(b)	440,800		10,707,032
Citigroup, Inc.(b)	320,600		15,561,924
Clear Channel Communications, Inc.(b)	153,400		7,183,722
Colgate-Palmolive Co.	53,000		2,652,650
Comcast Corp. (Special Class “A” Stock)(a)(b)	156,300		4,889,064
Costco Wholesale Corp.(a)	176,800		6,573,424
Dell, Inc.(a)	217,000		7,369,320
General Electric Co.	300,300		9,303,294
Gilead Sciences, Inc.(a)	139,900		8,133,786
Goldman Sachs Group, Inc.	56,900		5,617,737
Hughes Electronics Corp.(a)	299,486		4,956,493
Intel Corp.	218,500		7,035,700
InterActiveCorp(a)(b)	497,000		16,863,210
International Paper Co.	161,400		6,957,954
KLA-Tencor Corp.(a)	57,700		3,385,259
Medimmune, Inc.(a)	58,700		1,490,980
Merrill Lynch & Co., Inc.	129,300		7,583,445
Microsoft Corp.	476,000		13,109,040
Motorola, Inc.	104,800		1,474,536
Northrop Grumman Corp.(b)	77,100		7,370,760
Pfizer, Inc.	371,560		13,127,215
Phelps Dodge Corp.(a)	43,200		3,287,088
Procter & Gamble Co.(b)	48,100		4,804,228
Schlumberger, Ltd.(b)	122,300		6,692,256
Smith International, Inc.(a)	196,100		8,142,072

SEE NOTES TO FINANCIAL STATEMENTS.

B32




		*GLOBAL PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS
(Continued)	Shares	Value (Note 2)
United States (cont’d.)
State Street Corp.(b)	127,700	$	6,650,616
Texas Instruments, Inc.	230,500		6,772,090
UnitedHealth Group, Inc.(b)	142,900		8,313,922
Univision Communications, Inc. (Class “A” Stock)(a)(b)	205,300		8,148,357
Viacom, Inc. (Class “B” Stock)(b)	198,400		8,804,992
Wal-Mart Stores, Inc.(b)	177,700		9,426,985
Wendy’s International, Inc.	173,600		6,812,064

			306,890,455

TOTAL LONG-TERM INVESTMENTS (cost $541,812,896)			637,179,346


SHORT-TERM INVESTMENT — 22.0%	Shares	Value (Note 2)
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series (cost $146,019,132; Note 4)(c)	146,019,132	$	146,019,132

TOTAL INVESTMENTS — 117.7% (cost $687,832,028; Note 6)			783,198,478
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS, NET(d)			(48,427	)
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS — (17.7)%			(117,519,689	)

NET ASSETS — 100%		$	665,630,362

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $132,760,909; cash collateral of $139,928,992 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(d)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Forward Foreign Currency Contracts	Value at Settlement Date		Current Value		Unrealized Appreciation (Depreciation)
Purchased:
Eurodollars expiring 1/2/04	$	530,960	$	534,447	$	3,487
Eurodollars expiring 1/5/04		1,360,955		1,360,761		(194	)

						3,293

Sold:
Pound Sterling expiring 1/2/04		530,960		564,575		(33,615	)
Pound Sterling expiring 1/5/04		1,360,955		1,361,183		(228	)
Swedish Krona expiring 1/2/04		1,081,481		1,099,358		(17,877	)

						(51,720	)

					$	(48,427	)

SEE NOTES TO FINANCIAL STATEMENTS.

B33




		*GLOBAL PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


Mutual Fund	22.0	%
Pharmaceuticals	7.8	%
Commercial Banks	6.3	%
Capital Markets	5.5	%
Semiconductors & Semiconductor Equipment	5.5	%
Media	5.1	%
Specialty Retail	5.0	%
Diversified Financial Services	4.6	%
Software	3.8	%
Food & Staples Retailing	3.7	%
Energy Equipment & Services	3.4	%
Metals & Mining	3.3	%
Oil & Gas	3.3	%
Industrial Conglomerates	3.2	%
Biotechnology	2.8	%
Internet & Catalog Retail	2.5	%
Air Freight & Couriers	2.4	%
Wireless Telecommunication Services	2.4	%
Trading Companies & Distributors	2.2	%
Communications Equipment	2.2	%
Household Products	1.9	%
Healthcare Providers & Services	1.9	%
Real Estate	1.9	%
Hotels, Restaurants & Leisure	1.8	%
Paper & Forest Products	1.7	%


Construction & Engineering	1.5	%
Transportation Infrastructure	1.2	%
Aerospace & Defense	1.1	%
Computers & Peripherals	1.1	%
Diversified Telecommunication Services	1.1	%
Insurance	1.0	%
Chemicals	1.0	%
Beverages	1.0	%
Auto Components	0.9	%
Office Electronics	0.9	%
Containers & Packaging	0.7	%

	117.7	%
Forward foreign currency contracts	—
Other liabilities in excess of other assets	(17.7	)%

	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

B34




		*HIGH YIELD BOND PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.3% CORPORATE BONDS — 89.9%	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Aerospace/Defense — 1.6%
Dunlop Standard Aerospace Holdings PLC, Sr. Notes (United Kingdom)	B3	11.875%	05/15/09	$	2,700	$	2,889,000
Esterline Technologies Corp., Sr. Sub. Notes	B1	7.75%	06/15/13		4,500		4,837,500
K&F Industries, Inc., Sr. Sub. Notes	B3	9.625%	12/15/10		2,165		2,427,506
K&F Industries, Inc., Sr. Sub. Notes, Ser. B	B3	9.25%	10/15/07		3,841		3,961,031
L-3 Communications Corp., Sr. Sub. Notes	Ba3	6.125%	01/15/14		925		927,313
L-3 Communications Corp., Sr. Sub. Notes	Ba3	7.625%	06/15/12		4,750		5,147,812
Sequa Corp., Sr. Notes	B1	8.875%	04/01/08		2,000		2,170,000
TransDigm, Inc.	B3	8.375%	07/15/11		1,500		1,595,625

							23,955,787

Asset Backed Security — 0.1%
Inner Harbor CBO, Sub. Bond, Ser. 2001-1A, Class B2 (Cayman Islands)	Ba2	11.19%	06/15/13		2,000		1,522,188

Building & Construction — 2.2%
American Standard, Inc., Gtd. Notes	Ba2	7.375%	04/15/05		3,000		3,165,000
Beazer Homes USA, Inc., Sr. Notes	Ba2	8.625%	05/15/11		1,820		2,002,000
D.R. Horton, Inc., Gtd. Notes(b)	Ba1	8.00%	02/01/09		3,000		3,390,000
D.R. Horton, Inc., Sr. Notes(b)	Ba1	8.50%	04/15/12		3,250		3,672,500
KB HOME, Sr. Sub. Notes	Ba2	8.625%	12/15/08		2,800		3,136,000
New Millenium Homes LLC, Sr. Notes(e)	NR	11.75%	12/31/07		2,781		1,390,500
Nortek Holdings, Inc., Sr. Notes, Zero Coupon (until 11/15/07)	Caa1	10.00%	05/15/11		3,500		2,528,750
Nortek, Inc., Sr. Sub. Notes, Ser. B	B3	9.875%	06/15/11		4,330		4,773,825
Toll Corp., Sr. Sub. Notes(b)	Ba2	8.25%	02/01/11		4,150		4,565,000
WCI Communities, Inc., Gtd. Notes	Ba3	9.125%	05/01/12		4,000		4,400,000

							33,023,575

Cable — 5.3%
Avalon Cable Holdings, Sr. Disc. Notes	Caa1	11.875%	12/01/08		3,151		3,324,358
Callahan Nordrhein-Westfalen, Sr. Disc. Notes, Zero Coupon (until 07/15/05) (Germany)(c)	B-	16.00%	07/15/10		7,000		280,000
Charter Communications Holdings, Sr. Disc. Notes, Zero Coupon (until 05/15/06)	Ca	11.75%	05/15/11		3,150		2,110,500
Charter Communications Holdings, Sr. Notes(b)	Ca	8.625%	04/01/09		12,325		10,753,562
Charter Communications Holdings, Sr. Notes(b)	Ca	9.625%	11/15/09		3,150		2,772,000
Charter Communications Holdings, Sr. Notes	Ca	10.00%	04/01/09		1,000		890,000
Charter Communications Holdings, Sr. Notes	Ca	10.00%	05/15/11		9,975		8,678,250
Charter Communications Holdings, Sr. Notes	Ca	10.25%	01/15/10		2,235		2,000,325
Charter Communications Holdings, Sr. Notes(b)	Caa1	10.25%	09/15/10		1,400		1,470,000
Charter Communications Holdings, Sr. Notes	Ca	10.75%	10/01/09		1,700		1,559,750
Charter Communications Holdings, Sr. Notes(b)	Ca	11.125%	01/15/11		3,075		2,821,313
CSC Holdings, Inc., Sr. Debs	B1	7.625%	07/15/18		1,275		1,338,750
CSC Holdings, Inc., Sr. Sub. Debs.(b)	B2	10.50%	05/15/16		970		1,110,650
DirecTV Holdings, Sr. Notes	B1	8.375%	03/15/13		4,605		5,341,800
Echostar DBS Corp., Sr. Notes	Ba3	9.125%	01/15/09		5,174		5,788,412
Echostar DBS Corp., Sr. Notes	Ba3	10.375%	10/01/07		16,300		17,868,875
NTL, Inc., Debs	Caa2	11.20%	11/15/07		6,300		6,363,000
Telewest PLC, Debs. (United Kingdom)(b)(c)	Ca	11.00%	10/01/07		4,450		2,892,500

							77,364,045

Chemicals — 4.0%
Avecia Group PLC, Gtd. Notes (United Kingdom)(b)	Caa1	11.00%	07/01/09		6,125		5,512,500
Equistar Chemicals LP, Gtd. Note	B2	10.125%	09/01/08		830		908,850
Equistar Chemicals LP, Sr. Notes	B2	10.625%	05/01/11		5,480		6,055,400
Huntsman Advanced Materials LLC, Sr. Sec’d. Notes(b)	B2	11.00%	07/15/10		2,500		2,762,500
Huntsman ICI Chemical, Sr. Sub. Notes	Caa1	10.125%	07/01/09		5,075		5,227,250
Huntsman LLC, Sr. Sec’d. Notes	B2	11.625%	10/15/10		3,600		3,672,000
IMC Global, Inc., Gtd. Notes, Ser. B	B1	10.875%	06/01/08		1,000		1,100,000

SEE NOTES TO FINANCIAL STATEMENTS.

B35




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Chemicals (cont’d.)
IMC Global, Inc., Gtd. Notes, Ser. B(b)	B1	11.25%	06/01/11	$	5,785	$	6,363,500
ISP Chemco, Inc., Gtd. Notes, Ser. B	B2	10.25%	07/01/11		2,485		2,795,625
Koppers, Inc., Sr. Sec’d. Notes	B2	9.875%	10/15/13		1,000		1,102,500
Lyondell Chemical Co., Sec’d. Notes	B1	10.50%	06/01/13		715		779,350
Nalco Co., Sr. Sub. Notes	Caa1	8.875%	11/15/13		2,650		2,809,000
OM Group, Inc., Sr. Sub. Notes(b)	Caa1	9.25%	12/15/11		12,500		13,000,000
Rhodia SA, Sr. Sub. Notes (France)(b)	B3	8.875%	06/01/11		2,410		2,217,200
Rockwood Specialties, Inc., Sr. Sub. Notes(b)	B3	10.625%	05/15/11		2,175		2,425,125
Westlake Chemical Corp., Gtd. Notes	Ba3	8.75%	07/15/11		2,300		2,518,500

							59,249,300

Consumer Products & Services — 0.8%
Coinmach Corp., Sr. Notes	B2	9.00%	02/01/10		4,510		4,893,350
DIMON, Inc., Gtd. Notes, Ser. B	Ba3	9.625%	10/15/11		850		947,750
Goodyear Tire & Rubber Co., Notes(b)	B2	7.857%	08/15/11		1,500		1,308,750
Rayovac Corp., Sr. Sub. Notes	B3	8.50%	10/01/13		4,050		4,293,000

							11,442,850

Containers — 3.3%
Anchor Glass Container Corp., Sr. Sec’d. Notes	B2	11.00%	02/15/13		2,975		3,451,000
Berry Plastics Corp., Gtd. Notes	B3	10.75%	07/15/12		2,920		3,361,650
Berry Plastics Corp., Gtd. Notes(b)	B3	10.75%	07/15/12		1,525		1,755,656
BWAY Corp., Sr. Sub. Notes	B3	10.00%	10/15/10		960		1,046,400
Crown European Holdings SA, Sr. Sec’d. Notes (France)(b)	B1	9.50%	03/01/11		3,750		4,246,875
Graham Packaging, Sr. Disc. Notes, Ser. B, Zero Coupon (until 01/15/03)	Caa2	10.75%	01/15/09		10,600		10,944,500
Graphic Packaging International, Inc., Sr. Sub. Notes	B3	9.50%	08/15/13		3,075		3,397,875
Greif Brothers Corp., Sr. Sub. Notes	B2	8.875%	08/01/12		5,250		5,775,000
Norampac, Inc.	Ba2	6.75%	06/01/13		2,500		2,606,250
Owens-Brockway, Sr. Sec’d. Notes	B1	7.75%	05/15/11		6,650		7,140,438
Owens-Brockway, Sr. Sec’d. Notes	B1	8.75%	11/15/12		1,255		1,397,756
Silgan Holdings, Inc., Sr. Sub. Notes(b)	B1	6.75%	11/15/13		1,750		1,754,375
Tekni-Plex, Inc., Sr. Sec’d. Notes(b)	B2	8.75%	11/15/13		1,200		1,251,000

							48,128,775

Energy — 9.0%
Allegheny Energy Supply Co., LLC, Notes(b)	B3	8.75%	04/15/12		4,525		4,264,812
AmeriGas Partners LP, Sr. Notes, Ser. C	B2	8.875%	05/20/11		2,950		3,245,000
Chesapeake Energy Corp., Sr. Notes	Ba3	8.125%	04/01/11		3,000		3,330,000
El Paso Corp., Sr. Notes(b)	Caa1	7.00%	05/15/11		4,330		3,994,425
El Paso Energy Partners LP, Sr. Sub. Notes, Ser. B	B1	8.50%	06/01/11		335		376,875
El Paso Production Holdings LP, Sr. Notes(b)	B2	7.75%	06/01/13		9,125		8,988,125
Eott Energy Partners LP, Sr. Notes(c)(e)	Caa2	11.00%	10/01/09		740		1
Ferrellgas Partners LP, Sr. Notes	B2	8.75%	06/15/12		1,400		1,540,000
Forest Oil Corp., Sr. Notes	Ba3	8.00%	06/15/08		1,250		1,362,500
Forest Oil Corp., Sr. Notes	Ba3	8.00%	12/15/11		3,400		3,714,500
Gazprom OAO, Notes (cost $5,637,736; purchased 02/21/03)(Russia)(b)(f)	BB-(g)	9.625%	03/01/13		5,550		6,118,875
Gemstone Investors, Ltd., Gtd. Sr. Notes	Caa1	7.71%	10/31/04		2,480		2,504,800
GulfTerra Energy Partners LP, Gtd. Notes	B1	10.625%	12/01/12		486		602,640
GulfTerra Energy Partners LP, Sr. Sub. Notes	Ba3	6.25%	06/01/10		2,675		2,782,000
Hanover Compressor Co., Sr. Notes	B3	8.625%	12/15/10		2,125		2,210,000
Hanover Equipment Trust, Sec’d. Notes(b)	B2	8.50%	09/01/08		2,110		2,236,600
Hanover Equipment Trust, Sec’d. Notes(b)	B2	8.75%	09/01/11		2,170		2,300,200
Houston Exploration Co., Sr. Sub. Notes	B1	7.00%	06/15/13		1,375		1,419,688
Leviathan Gas Pipeline, Sr. Gtd. Sub. Notes, Ser. B	B1	10.375%	06/01/09		2,000		2,170,000
Magnum Hunter Resources, Sr. Notes	B2	9.60%	03/15/12		2,225		2,525,375
Newfield Exploration Co., Sr. Sub. Notes(b)	Ba3	8.375%	08/15/12		6,235		6,983,200
Paramount Resources, Ltd., Sr. Notes (Canada)	B2	7.875%	11/01/10		3,400		3,383,000

SEE NOTES TO FINANCIAL STATEMENTS.

B36




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Energy (cont’d.)
Parker and Parsley, Sr. Notes	Ba1	8.875%	04/15/05	$	1,000	$	1,070,249
Pioneer Natural Resources Co., Gtd. Notes	Ba1	7.50%	04/15/12		5,000		5,746,680
Plains All American Pipeline LP, Sr. Notes	Ba1	7.75%	10/15/12		4,620		5,330,325
Premcor Refining Group, Inc., Sr. Notes	Ba3	7.50%	06/15/15		675		691,875
Premcor Refining Group, Inc., Sr. Notes	Ba3	9.50%	02/01/13		3,055		3,482,700
Premcor Refining Group, Inc., Sr. Sub. Notes(b)	B2	7.75%	02/01/12		1,925		1,982,750
Semco Energy, Inc., Sr. Notes	Ba2	7.125%	05/15/08		1,800		1,874,250
Southern Energy, Sr. Notes(b)(c)	D	7.40%	07/15/04		1,825		1,177,125
Southern Natural Gas Co., Sr. Notes(b)	B1	8.875%	03/15/10		2,900		3,262,500
Stone Energy Corp., Sr. Sub. Notes	B2	8.25%	12/15/11		7,000		7,630,000
Tennessee Gas Pipeline Co., Debs.	B1	7.00%	03/15/27		3,530		3,662,375
Tennessee Gas Pipeline Co., Debs.	B1	7.00%	10/15/28		2,125		2,018,750
Tennessee Gas Pipeline Co., Debs.	B1	7.625%	04/01/37		4,615		4,545,775
TransMontaigne, Inc., Sr. Sub. Notes	B3	9.125%	06/01/10		2,325		2,493,562
Vintage Petroleum, Inc., Sr. Sub. Notes	B1	9.75%	06/30/09		3,582		3,770,055
Williams Cos., Inc., Notes(b)	B3	7.125%	09/01/11		4,475		4,732,312
Williams Cos., Inc., Notes(b)	B3	8.125%	03/15/12		5,045		5,599,950
Williams Cos., Inc., Notes	B3	9.25%	03/15/04		3,130		3,169,125
Williams Cos., Inc., Sr. Notes	B3	8.625%	06/01/10		3,275		3,676,188

							131,969,162

Food & Beverage — 1.9%
Agrilink Foods, Inc., Sr. Gtd. Notes	B3	11.875%	11/01/08		465		494,063
Carrols Corp., Sr. Gtd. Notes	B3	9.50%	12/01/08		2,885		2,928,275
Del Monte Corp., Sr. Sub. Notes	B2	8.625%	12/15/12		2,700		2,956,500
Dole Food Co., Inc., Sr. Notes	B2	7.25%	06/15/10		1,875		1,931,250
Dole Food Co., Inc., Sr. Notes	B2	8.625%	05/01/09		2,400		2,634,000
Dole Food Co., Inc., Sr. Notes	B2	8.875%	03/15/11		1,995		2,189,512
Homeland Stores, Inc., Sr. Notes(c)(e)	NR	10.00%	08/01/49		4,260		170,400
Merisant Co., Gtd. Notes	B3	9.50%	07/15/13		1,125		1,198,125
National Beef Packing Co., LLC, Sr. Notes(b)	B2	10.50%	08/01/11		2,000		2,060,000
National Restaurant Enterprises Holdings, Inc., Sr. Notes(c)	NR	10.75%	11/15/07		269		3
National Restaurant Enterprises Holdings, Inc., Sr. Notes(c)	NR	13.00%	05/15/08		286		3
Smithfield Foods, Inc., Notes	Ba2	7.75%	05/15/13		900		936,000
Smithfield Foods, Inc., Sr. Notes(b)	Ba2	8.00%	10/15/09		2,440		2,574,200
Tricon Global Restaurants, Inc., Sr. Notes	Ba1	7.45%	05/15/05		1,000		1,066,250
Tricon Global Restaurants, Inc., Sr. Notes	Ba1	8.875%	04/15/11		5,000		6,062,500

							27,201,081

Gaming — 5.3%
Argosy Gaming Co., Sr. Sub. Notes	B2	9.00%	09/01/11		810		897,075
Aztar Corp., Sr. Sub. Notes	Ba3	8.875%	05/15/07		1,250		1,304,687
Boyd Gaming Corp., Sr. Sub. Notes	B1	8.75%	04/15/12		1,500		1,646,250
Circus Enterprises, Inc., Sr. Notes	Ba2	6.45%	02/01/06		1,220		1,271,850
Coast Hotels & Casinos, Inc., Sr. Sub. Notes	B2	9.50%	04/01/09		2,000		2,115,000
Gaylord Entertainment Co., Sr. Notes	B3	8.00%	11/15/13		2,595		2,737,725
Isle of Capri Casinos, Inc., Sr. Sub. Notes(b)	B2	9.00%	03/15/12		1,430		1,590,875
Mandalay Resort Group, Sr. Notes(b)	Ba2	9.50%	08/01/08		2,250		2,626,875
MGM Grand, Inc., Gtd. Notes	Ba2	9.75%	06/01/07		9,051		10,318,140
MGM Mirage, Inc., Gtd. Notes	Ba1	6.00%	10/01/09		4,750		4,880,625
Mohegan Tribal Gaming Authority, Sr. Sub. Notes	Ba3	6.375%	07/15/09		2,585		2,669,012
Mohegan Tribal Gaming Authority, Sr. Sub. Notes	Ba3	8.00%	04/01/12		1,695		1,834,838
Park Place Entertainment Corp., Sr. Notes(b)	Ba1	7.50%	09/01/09		5,700		6,270,000
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	7.875%	12/15/05		3,500		3,749,375
Park Place Entertainment Corp., Sr. Sub. Notes(b)	Ba2	8.125%	05/15/11		1,530		1,715,512
Park Place Entertainment Corp., Sr. Sub. Notes	Ba2	9.375%	02/15/07		355		402,038
Station Casinos, Inc., Sr. Sub. Notes(b)	B2	9.875%	07/01/10		8,075		8,882,500
Sun International Hotels, Ltd., Sr. Sub. Notes (Bahamas)	B2	8.875%	08/15/11		5,980		6,533,150

SEE NOTES TO FINANCIAL STATEMENTS.

B37




		*HIGH YIELD BOND PORTFOLIO (Continued*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Gaming (cont’d.)
Venetian Casino Resort LLC, Second Mtge. Notes	B3	11.00%	06/15/10	$	8,460	$	9,813,600
Wynn Las Vegas LLC, Second Mtge. Notes(b)	B3	12.00%	11/01/10		5,050		5,946,375

							77,205,502

Healthcare — 6.8%
Alliance Imaging, Inc., Sr. Sub. Notes(b)	B3	10.375%	04/15/11		6,575		6,969,500
Bio-Rad Laboratories, Inc., Sr. Sub. Notes	Ba3	7.50%	08/15/13		1,700		1,870,000
Columbia/HCA Healthcare Corp., Debs.	Ba1	7.50%	12/15/23		600		623,395
Columbia/HCA Healthcare Corp., M.T.N.	Ba1	8.70%	02/10/10		3,000		3,550,830
Columbia/HCA Healthcare Corp., M.T.N.	Ba1	8.85%	01/01/07		259		292,842
Columbia/HCA Healthcare Corp., Notes	Ba1	9.00%	12/15/14		4,000		4,840,832
Columbia/HCA Healthcare Corp., Sr. Notes	Ba1	7.69%	06/15/25		1,500		1,582,964
Columbia/HCA Healthcare Corp., Sr. Notes	Ba1	8.36%	04/15/24		2,000		2,247,172
Concentra Operating Corp., Sr. Gtd. Sub. Notes	B3	13.00%	08/15/09		2,317		2,583,455
Coventry Health Care, Inc ., Sr. Notes	Ba3	8.125%	02/15/12		2,800		3,108,000
HCA, Inc., Debs.	Ba1	7.50%	11/15/95		665		636,900
HCA, Inc., Notes	Ba1	7.125%	06/01/06		3,830		4,149,545
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	6.875%	06/15/05		1,900		1,819,250
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	7.375%	10/01/06		750		714,375
HEALTHSOUTH Corp., Sr. Notes(b)(c)	NR	8.50%	02/01/08		2,000		1,920,000
Magellan Health Services, Inc., Sr. Notes	D	9.375%	11/15/07		5,270		5,533,500
Mariner Health Care, Inc., Sr. Sub. Notes(b)	B3	8.25%	12/15/13		3,400		3,434,000
Medco Health Solutions, Inc., Sr. Notes(b)	Ba1	7.25%	08/15/13		1,475		1,609,151
MedQuest, Inc., Sr. Sub. Notes	B3	11.875%	08/15/12		4,050		4,424,625
NeighborCare, Inc., Sr. Sub. Notes	Ba3	6.875%	11/15/13		2,000		2,035,000
Quintiles Transnational Corp., Sr. Sub. Notes	B3	10.00%	10/01/13		4,625		4,995,000
Res-Care, Inc., Sr. Notes	B2	10.625%	11/15/08		2,400		2,484,000
Select Medical Corp., Sr. Sub. Notes	B2	7.50%	08/01/13		1,705		1,807,300
Select Medical Corp., Sr. Sub. Notes(b)	B2	9.50%	06/15/09		2,415		2,650,463
Senior Housing Properties Trust, Sr. Notes	Ba2	8.625%	01/15/12		4,000		4,360,000
Service Corp. International, Debs.(b)	B1	7.875%	02/01/13		2,000		2,035,000
Service Corp. International, Notes	B1	6.00%	12/15/05		473		482,460
Service Corp. International, Notes	B1	6.50%	03/15/08		2,000		2,055,000
Tenet Healthcare Corp., Sr. Notes	B1	5.375%	11/15/06		2,000		1,970,000
Tenet Healthcare Corp., Sr. Notes(b)	B1	6.375%	12/01/11		810		777,600
Tenet Healthcare Corp., Sr. Notes	B1	6.50%	06/01/12		7,100		6,807,125
Triad Hospitals Holding, Sr. Notes, Ser. B	B1	8.75%	05/01/09		1,800		1,950,750
Triad Hospitals, Inc.(b)	B3	7.00%	11/15/13		2,600		2,619,500
Valeant Pharmaceuticals International, Sr. Notes	B1	7.00%	12/15/11		3,025		3,115,750
Ventas Realty LP, Sr. Notes(b)	Ba3	8.75%	05/01/09		2,000		2,195,000
Ventas Realty LP, Sr. Notes	Ba3	9.00%	05/01/12		4,348		4,826,280

							99,076,564

Industrials — 5.4%
Alliant Techsystems, Inc., Sr. Sub. Notes	B2	8.50%	05/15/11		2,750		3,025,000
Allied Waste of North America, Inc., Sr. Notes(b)	Ba3	6.50%	11/15/10		555		568,875
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.625%	01/01/06		1,250		1,315,625
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.875%	01/01/09		4,560		4,753,800
Allied Waste of North America, Inc., Sr. Notes	Ba3	7.875%	04/15/13		675		730,687
Allied Waste of North America, Inc., Sr. Notes(b)	Ba3	8.50%	12/01/08		8,200		9,122,500
Allied Waste of North America, Inc., Sr. Notes(b)	B2	10.00%	08/01/09		3,810		4,114,800
American Color Graphics, Inc., Notes	B3	10.00%	06/15/10		2,000		2,050,000
AMSTED Industries, Inc., Sr. Notes	B3	10.25%	10/15/11		2,550		2,817,750
Browning-Ferris Industries, Inc., Deb. Notes	Ba3	7.40%	09/15/35		2,000		1,895,000
Case New Holland, Inc., Sr. Notes(b)	Ba3	9.25%	08/01/11		3,425		3,836,000
International Wire Group, Inc., Sr. Sub. Notes(c)	Ca	11.75%	06/01/05		680		418,200
International Wire Group, Inc., Sr. Sub. Notes, Ser. B(c)	Ca	11.75%	06/01/05		160		98,400
Iron Mountain, Inc., Gtd. Notes	B2	8.625%	04/01/13		3,875		4,185,000

SEE NOTES TO FINANCIAL STATEMENTS.

B38




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Industrials (cont’d.)
Johnsondiversey Holdings, Inc., Sr. Disc. Notes, Zero Coupon (until 05/15/07)	B3	10.67%	05/15/13	$	2,905	$	2,222,325
Joy Global, Inc., Gtd. Notes, Ser. B(b)	B2	8.75%	03/15/12		4,725		5,268,375
Manitowoc Co., Inc., Sr. Sub. Notes(b)	B2	10.50%	08/01/12		4,150		4,725,813
Motors & Gears, Inc., Sr. Notes	Caa1	10.75%	11/15/06		4,000		3,400,000
Rexnord Corp., Gtd. Notes	B3	10.125%	12/15/12		3,575		3,914,625
SPX Corp., Sr. Notes	Ba3	6.25%	06/15/11		1,250		1,284,375
Terex Corp., Sr. Sub. Notes	B3	7.375%	01/15/14		650		664,625
Terex Corp., Sr. Sub. Notes	B3	9.25%	07/15/11		2,825		3,107,500
Terex Corp., Sr. Sub. Notes(b)	B3	10.375%	04/01/11		3,445		3,858,400
Thermadyne Holdings Corp., Deb. Notes, Zero Coupon (until 06/01/03)(c)	C	12.50%	06/01/08		2,375		24
Tyco International Group SA, Notes	Ba2	6.125%	11/01/08		50		53,500
Tyco International Group SA, Notes(b)	Ba2	6.375%	10/15/11		3,475		3,713,906
Tyco International Group SA, Notes (Luxembourg)	Ba2	6.75%	02/15/11		1,600		1,748,000
United Rentals, Inc., Gtd. Notes, Ser. B(b)	B2	9.25%	01/15/09		1,250		1,312,500
United Rentals, Inc., Gtd. Notes, Ser. B	B1	10.75%	04/15/08		1,000		1,125,000
United Rentals, Inc., Sr. Sub. Notes(b)	B2	7.75%	11/15/13		3,150		3,216,937

							78,547,542

Lodging & Leisure — 6.1%
Extended Stay America, Inc., Sr. Sub. Notes(b)	B2	9.875%	06/15/11		3,110		3,483,200
Felcor Lodging LP, Gtd. Notes(b)	B1	9.00%	06/01/11		4,900		5,316,500
Felcor Lodging LP, Gtd. Notes(b)	B1	10.00%	09/15/08		6,170		6,663,600
Felcor Suites LP, Gtd. Notes(b)	B1	7.625%	10/01/07		950		978,500
Hilton Hotels Corp., Notes(b)	Ba1	7.625%	12/01/12		1,550		1,741,812
Hilton Hotels Corp., Sr. Notes	Ba1	7.50%	12/15/17		285		302,813
HMH Properties, Inc., Sr. Gtd. Notes, Ser. B	Ba3	7.875%	08/01/08		5,570		5,792,800
HMH Properties, Inc., Sr. Gtd. Notes, Ser. C	Ba3	8.45%	12/01/08		273		284,603
Host Marriott LP, Sr. Notes(b)	Ba3	7.125%	11/01/13		1,600		1,632,000
Host Marriott LP, Sr. Notes(b)	Ba3	9.50%	01/15/07		6,815		7,581,687
Host Marriott LP, Sr. Notes, Ser. E	Ba3	8.375%	02/15/06		5,175		5,517,844
Intrawest Corp., Sr. Notes	B1	10.50%	02/01/10		6,720		7,425,600
ITT Corp., Debs(b)	Ba1	6.75%	11/15/05		3,030		3,181,500
ITT Corp., Sr. Sub. Notes, Ser. B	Ba1	7.375%	11/15/15		1,250		1,337,500
La Quinta Inns, Inc., Sr. Notes	Ba3	7.40%	09/15/05		1,000		1,042,500
La Quinta Properties, Inc.	Ba3	8.875%	03/15/11		3,725		4,120,781
Regal Cinemas, Inc., Sr. Sub. Notes, Ser. B(b)	B2	9.375%	02/01/12		5,000		5,650,000
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)	Ba2	6.875%	12/01/13		3,125		3,148,437
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)(b)	Ba2	8.125%	07/28/04		1,185		1,223,513
Royal Caribbean Cruises, Ltd., Sr. Notes (Liberia)(b)	Ba2	8.75%	02/02/11		1,150		1,299,500
Six Flags, Inc., Sr. Notes(b)	B2	9.50%	02/01/09		1,250		1,309,375
Six Flags, Inc., Sr. Notes	B2	9.625%	06/01/14		2,775		2,899,875
Six Flags, Inc., Sr. Notes(b)	B2	9.75%	06/15/07		4,525		4,745,594
Starwood Hotels & Resorts Worldwide, Inc., Notes	Ba1	7.375%	05/01/07		5,900		6,372,000
Starwood Hotels & Resorts Worldwide, Inc., Notes(b)	Ba1	7.875%	05/01/12		2,235		2,514,375
Vail Resorts, Inc., Gtd. Notes	B2	8.75%	05/15/09		3,500		3,692,500

							89,258,409

Media — 5.5%
Alliance Atlantis, Sr. Sub. Notes (Canada)	B1	13.00%	12/15/09		3,520		4,012,800
American Media Operations, Inc., Gtd. Notes, Ser. B	B2	10.25%	05/01/09		760		810,350
CanWest Media, Inc., Sr. Notes (Canada)	B1	7.625%	04/15/13		1,500		1,642,500
CanWest Media, Inc., Sr. Sub. Notes (Canada)	B2	10.625%	05/15/11		3,000		3,427,500
Dex Media East LLC, Sr. Sub. Notes(b)	B3(g)	12.125%	11/15/12		3,625		4,458,750
Dex Media West LLC, Sr. Sub. Notes(b)	B3	9.875%	08/15/13		10,225		11,886,562
Dex Media, Inc., Notes(b)	Caa1	8.00%	11/15/13		2,825		2,966,250
Entercom Radio LLC, Gtd. Notes	Ba3	7.625%	03/01/14		1,605		1,723,369
Granite Broadcasting Corp., Sec’d. Notes	B3	9.75%	12/01/10		3,500		3,491,250

SEE NOTES TO FINANCIAL STATEMENTS.

B39




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Media (cont’d.)
Gray Television, Inc., Sr. Sub. Notes	B2	9.25%	12/15/11	$	4,325	$	4,822,375
Moore NA Finance, Inc., Sr. Notes	B1	7.875%	01/15/11		2,300		2,604,750
Morris Publishing Group LLC, Sr. Sub. Notes	Ba3	7.00%	08/01/13		1,300		1,319,500
Phoenix Color Corp., Sr. Sub. Notes	Caa2	10.375%	02/01/09		4,000		3,565,000
PRIMEDIA, Inc., Sr. Notes	B3	8.875%	05/15/11		2,000		2,110,000
Quebecor Media, Inc., Sr. Disc. Notes, Zero Coupon (until 07/15/06) (Canada)	B2	13.75%	07/15/11		3,125		2,753,906
Quebecor Media, Inc., Sr. Notes (Canada)	B2	11.125%	07/15/11		2,900		3,356,750
R.H. Donnelley Finance Corp., Sr. Sub. Notes(b)	B2	10.875%	12/15/12		3,025		3,588,406
Sinclair Broadcast Group, Inc., Gtd. Notes	B2	8.00%	03/15/12		4,600		4,968,000
Sinclair Broadcast Group, Inc., Gtd. Notes(b)	B2	8.75%	12/15/11		2,500		2,775,000
Susquehanna Media Co., Sr. Sub. Notes	B1	7.375%	04/15/13		900		938,250
Vertis, Inc., Gtd. Notes, Ser. B	B3	10.875%	06/15/09		1,700		1,806,250
Vertis, Inc., Sec’d. Notes	B2	9.75%	04/01/09		4,500		4,888,125
Videotron LTEE, Sr. Notes (Canada)(b)	Ba3	6.875%	01/15/14		3,950		4,078,375
Vivendi Universal SA, Sr. Notes (France)	B1	6.25%	07/15/08		2,950		3,123,313

							81,117,331

Metals & Mining — 1.8%
AK Steel Corp., Notes(b)	B3	7.75%	06/15/12		6,970		5,959,350
AK Steel Corp., Sr. Notes	B3	7.875%	02/15/09		2,360		2,070,900
Arch Western Finance LLC, Sr. Notes	Ba2	6.75%	07/01/13		1,335		1,371,712
Armco, Inc., Sr. Notes	B3	9.00%	09/15/07		800		710,000
Century Aluminum Co., First Mtge. Notes	B1	11.75%	04/15/08		3,050		3,400,750
CSN Islands VII Corp., Gtd. Notes (Cayman Islands)	B1	10.75%	09/12/08		3,445		3,798,112
Euramax International, Inc., Sr. Sub. Notes	B2	8.50%	08/15/11		875		934,063
Massey Energy Co., Sr. Notes(b)	Ba3	6.625%	11/15/10		2,700		2,767,500
Sheffield Steel Corp., Sr. Sec’d. Notes	NR	10.00%	04/30/07		962		577,188
Steel Dynamics, Inc., Sr. Notes	B1	9.50%	03/15/09		2,400		2,664,000
UCAR Finance, Inc., Gtd. Notes	B3	10.25%	02/15/12		1,570		1,805,500

							26,059,075

Paper & Forest Products — 2.5%
Boise Cascade Corp., Sr. Notes(b)	Ba2	6.50%	11/01/10		2,400		2,503,582
Cascades, Inc., Sr. Notes (Canada)	Ba1	7.25%	02/15/13		6,385		6,736,175
Georgia-Pacific Corp., Debs.	Ba3	7.70%	06/15/15		1,000		1,040,000
Georgia-Pacific Corp., Debs.	Ba3	7.75%	11/15/29		200		199,500
Georgia-Pacific Corp., Debs.	Ba3	8.625%	04/30/25		2,300		2,380,500
Georgia-Pacific Corp., Notes	Ba3	8.875%	05/15/31		2,960		3,256,000
Georgia-Pacific Corp., Sr. Notes	Ba3	8.125%	05/15/11		270		297,000
Georgia-Pacific Corp., Sr. Notes(b)	Ba2	9.375%	02/01/13		6,235		7,170,250
Louisiana-Pacific Corp., Sr. Notes	Ba1	8.50%	08/15/05		500		540,000
Millar Western Forest Products, Ltd., Sr. Notes	B3	7.75%	11/15/13		3,200		3,320,000
Smurfit-Stone Container Corp., Sr. Notes(b)	B2	8.25%	10/01/12		2,375		2,576,875
Stone Container Corp., Sr. Notes(b)	B2	8.375%	07/01/12		2,000		2,170,000
Stone Container Corp., Sr. Sub Notes	B2	11.50%	08/15/06		1,510		1,585,500
Tembec Industries, Inc., Sr. Notes (Canada)	Ba3	7.75%	03/15/12		2,650		2,636,750

							36,412,132

Retail — 0.2%
Couche-Tard, Sr. Sub. Notes	Ba3	7.50%	12/15/13		3,125		3,273,438

Retail & Supermarkets — 3.8%
Ahold Finance USA, Inc., Notes(b)	B1	8.25%	07/15/10		1,120		1,220,800
Asbury Automotive Group, Inc., Sr. Sub. Notes	B3	8.00%	03/15/14		1,800		1,809,000
AutoNation, Inc., Gtd. Notes	Ba2	9.00%	08/01/08		375		430,313
Delhaize America, Inc., Gtd. Notes	Ba1	8.125%	04/15/11		7,260		8,349,000
Dillards, Inc., Notes, Ser. A	B2	6.43%	08/01/04		1,800		1,822,500
Dominos, Inc., Sr. Sub. Notes	B3	8.25%	07/01/11		1,750		1,874,687

SEE NOTES TO FINANCIAL STATEMENTS.

B40




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 2)

Retail & Supermarkets (cont’d.)
General Nutrition Center, Inc., Sr. Sub. Notes	B3	8.50%	12/01/10	$	2,300		$	2,357,500
JC Penney Co., Inc., Deb. Notes	Ba3	7.40%	04/01/37		3,565			3,872,481
JC Penney Co., Inc., Deb. Notes(b)	Ba3	8.00%	03/01/10		2,350			2,693,688
JC Penney Co., Inc., Debs.(b)	Ba3	8.25%	08/15/22		2,075			2,145,031
Pantry, Inc., Sr. Notes	B3	10.25%	10/15/07		2,615			2,706,525
Pathmark Stores, Inc., Gtd. Notes	B2	8.75%	02/01/12		3,000			3,135,000
Pathmark Stores, Inc., Sr. Sub. Notes	B(g)	8.75%	02/01/12		3,000			3,135,000
Rite Aid Corp., Deb. Notes(b)	Caa2	6.875%	08/15/13		1,435			1,377,600
Rite Aid Corp., Deb. Notes(b)	Caa2	7.70%	02/15/27		1,870			1,711,050
Rite Aid Corp., Notes(b)	Caa2	6.875%	12/15/28		2,800			2,359,000
Rite Aid Corp., Sr. Sec’d. Note	B2	8.125%	05/01/10		3,175			3,413,125
Saks, Inc., Gtd. Notes(b)	B1	7.375%	02/15/19		4,500			4,578,750
Sonic Automotive Inc, Sr. Sub. Notes	B2	8.625%	08/15/13		3,400			3,587,000
Sonic Automotive, Inc., Sr. Sub. Notes(b)	B2	8.625%	08/15/13		675			712,125
Winn-Dixie Stores, Inc., Gtd. Notes(b)	Ba2	8.875%	04/01/08		2,775			2,816,625

								56,106,800

Technology — 3.2%
Amkor Technology, Inc., Sr. Notes(b)	B1	9.25%	02/15/08		1,070			1,214,450
Ampex Corp., Sec’d. Notes(c)	NR	12.00%	08/15/08		6,634			331,698
Avaya, Inc., Sec’d. Notes	B2	11.125%	04/01/09		1,000			1,170,000
Flextronics International, Ltd., Sr. Sub. Notes (Singapore)(b)	Ba2	6.50%	05/15/13		3,810			3,943,350
Lucent Technologies, Inc., Debs.(b)	Caa1	6.45%	03/15/29		2,400			1,887,000
Lucent Technologies, Inc., Debs.	Caa1	6.50%	01/15/28		1,325			1,036,813
Lucent Technologies, Inc., Notes(b)	Caa1	5.50%	11/15/08		6,950			6,463,500
ON Semiconductor Corp., Gtd. Notes(b)	Caa1	13.00%	05/15/08		2,230			2,592,375
Sanmina-SCI Corp., Sr. Notes	Ba2	10.375%	01/15/10		1,490			1,743,300
Seagate Technology International, Sr. Notes (Cayman Islands)	Ba2	8.00%	05/15/09		2,000			2,155,000
Unisys Corp., Sr. Notes(b)	Ba1	7.25%	01/15/05		4,100			4,248,625
Unisys Corp., Sr. Notes	Ba1	8.125%	06/01/06		1,760			1,900,800
Xerox Capital Europe PLC, Gtd. Notes (United Kingdom)(b)	B1	5.875%	05/15/04		6,910			6,979,100
Xerox Corp., Sr. Notes(b)	B1	7.125%	06/15/10		3,500			3,745,000
Xerox Corp., Sr. Notes(b)	B1	7.625%	06/15/13		5,575			6,021,000
Xerox Corp., Sr. Notes(b)	B1	9.75%	01/15/09		1,195			1,398,150

								46,830,161

Telecommunications — 8.5%
ACC Escrow Corp., Sr. Notes(b)	B2	10.00%	08/01/11		4,700			5,240,500
American Tower Corp., Sr. Notes(b)	Caa1	9.375%	02/01/09		6,650			7,082,250
AT&T Broadband Corp., Notes	Baa3	8.375%	03/15/13		100	(i)		122
Bestel SA de CV, Sr. Disc. Notes (Mexico)(c)	NR	12.75%	05/15/05		900			90,000
Cellnet Data Systems, Inc., Sr. Disc. Notes (cost $2,739,518; purchased 01/26/99)(c)(e)(f)	NR	14.00%	10/01/07		3,680			37
Cincinnati Bell, Inc., Sr. Sub. Notes(b)	B3	8.375%	01/15/14		3,000			3,225,000
Crown Castle International Corp., Sr. Notes(b)	B3	7.50%	12/01/13		4,250			4,271,250
Crown Castle International Corp., Sr. Notes	B3	7.50%	12/01/13		1,000			1,005,000
Crown Castle International Corp., Sr. Notes(b)	B3	10.75%	08/01/11		3,465			3,898,125
Dobson Communications Corp., Sr. Notes	B3	8.875%	10/01/13		4,000			4,050,000
Dobson Communications Corp., Sr. Notes(b)	B3	10.875%	07/01/10		400			436,000
Eircom Funding, Sr. Sub. Notes (Ireland)	B1	8.25%	08/15/13		4,300			4,762,250
Empresa Brasileira, Gtd. Notes (Brazil)(b)	B2	11.00%	12/15/08		620			637,050
MCI Communications Corp., Debs.(c)	NR	7.125%	06/15/27		500			402,500
MCI Communications Corp., Debs.(b)(c)	NR	7.75%	03/15/24		2,050			1,650,250
MCI Communications Corp., Debs.(b)(c)	NR	7.75%	03/23/25		4,225			3,401,125
MCI Communications Corp., Debs.(b)(c)	NR	8.25%	01/20/23		4,625			3,723,125
MCI Communications Corp., Sr. Notes(c)	NR	6.95%	08/15/06		1,300			1,046,500
Nextel Communications, Inc., Sr. Notes(b)	B2	7.375%	08/01/15		10,550			11,341,250

SEE NOTES TO FINANCIAL STATEMENTS.

B41




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)

Telecommunications (cont’d.)
Nextel Communications, Inc., Sr. Notes(b)	B2	9.375%	11/15/09	$	5,770	$	6,289,300
Nextel Communications, Inc., Sr. Notes	B2	9.50%	02/01/11		4,160		4,700,800
Nextel Partners, Inc., Sr. Notes(b)	Caa1	8.125%	07/01/11		5,875		6,256,875
Qwest Capital Funding, Inc., Gtd. Notes(b)	Caa2	5.875%	08/03/04		5,175		5,187,938
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.00%	08/03/09		2,400		2,382,000
Qwest Capital Funding, Inc., Gtd. Notes	Caa2	7.25%	02/15/11		3,325		3,275,125
Qwest Services Corp., Sr. Sec’d. Notes	CCC+	13.50%	12/15/10		16,085		19,543,275
Rogers Wireless Communications, Inc., Sec’d. Notes	Ba3	9.625%	05/01/11		1,300		1,553,500
SBA Communications Corp., Sr. Disc. Notes, Zero Coupon (until 12/15/07)	NR	9.75%	12/15/11		2,900		2,044,500
SBA Communications Corp., Sr. Notes(b)	Caa2	10.25%	02/01/09		4,400		4,323,000
Telus Corp., Notes (Canada)	Ba1	8.00%	06/01/11		3,560		4,162,662
Tritel PCS, Inc., Gtd. Notes	Baa2	10.375%	01/15/11		3,167		3,789,157
Triton PCS, Inc., Gtd. Notes	B2	8.50%	06/01/13		3,010		3,235,750
U.S. West Communications, Inc., Debs.	B2	7.50%	06/15/23		2,000		2,000,000

							125,006,216

Transportation — 3.3%
American Axle & Manufacturing, Inc., Gtd. Notes	Ba1	9.75%	03/01/09		3,940		4,166,550
AMR Corp., Deb. Notes	Caa2	10.00%	04/15/21		1,695		1,288,200
AMR Corp., M.T.N.	B	10.40%	03/15/11		1,000		800,000
AMR Corp., M.T.N.	B	10.55%	03/12/21		1,425		1,097,250
AMR Corp., Notes	Caa2	10.40%	03/10/11		1,000		800,000
ArvinMeritor, Inc., Notes(b)	Baa3	8.75%	03/01/12		5,650		6,469,250
Calair Capital Corp., Gtd. Notes	Caa2	8.125%	04/01/08		1,978		1,720,860
Continental Airlines, Inc., Pass-thru Certs., Ser. 01-1, Class B	Ba1	7.373%	12/15/15		1,417		1,230,900
Continental Airlines, Inc., Pass-thru Certs., Ser. 98-1, Class B	Ba2	6.748%	03/15/17		1,783		1,471,697
Continental Airlines, Inc., Pass-thru Certs., Ser. 99-1, Class B	Ba2	6.795%	02/02/20		969		818,090
Continental Airlines, Inc., Pass-thru Certs., Ser. 99-2, Class B	Ba2	7.566%	03/15/20		898		756,870
Delta Air Lines, Inc., Debs.	B3	10.375%	12/15/22		1,280		923,200
Delta Air Lines, Inc., Notes	B3	7.70%	12/15/05		2,765		2,609,469
Delta Air Lines, Inc., Notes	B3	7.90%	12/15/09		175		141,531
Delta Air Lines, Inc., Pass-thru Certs., Ser. 93, Class A-2	B1	10.50%	04/30/16		2,000		1,582,240
Delta Air Lines, Inc., Sr. Notes	B3	8.30%	12/15/29		2,105		1,391,931
Delta Air Lines, Inc., Sr. Notes	B	10.00%	08/15/08		175		149,844
Holt Group, Inc., Sr. Notes(c)	NR	9.75%	01/15/06		800		23,000
Kansas City Southern Railway, Sr. Notes	Ba3	7.50%	06/15/09		2,750		2,818,750
Lear Corp., Gtd. Notes, Ser. B	Ba1	7.96%	05/15/05		1,275		1,364,250
Navistar International Corp., Sr. Notes, Ser. B	Ba3	9.375%	06/01/06		1,300		1,434,875
Northwest Airlines, Inc., Gtd. Notes	Caa1	8.70%	03/15/07		1,000		875,000
Northwest Airlines, Inc., Gtd. Notes	Caa1	8.875%	06/01/06		350		317,625
Northwest Airlines, Inc., Gtd. Notes	Caa1	9.875%	03/15/07		1,000		910,000
Offshore Logistics, Inc., Gtd. Notes	Ba2	6.125%	06/15/13		4,200		4,116,000
Standyne Automotive Corp., Sr. Sub. Notes, Ser. B	Caa1	10.25%	12/15/07		1,180		1,156,400
Stena AB, Sr. Notes (Sweden)	Ba3	7.50%	11/01/13		3,175		3,270,250
Stena AB, Sr. Notes (Sweden)	Ba3	9.625%	12/01/12		1,600		1,804,000
Trism, Inc., Gtd. Notes(c)	NR	12.00%	02/15/05		1,305		6,523
TRW Automotive, Sr. Notes	B1	9.375%	02/15/13		2,700		3,084,750

							48,599,305

Utilities — 9.3%
AES Corp., Sec’d. Notes(b)	B2	8.75%	05/15/13		9,300		10,392,750
AES Corp., Sr. Notes(b)	B3	9.375%	09/15/10		9,200		10,200,500
AES Corp., Sr. Notes(b)	B3	9.50%	06/01/09		1,325		1,469,094
AES Drax Holdings, Ltd., Sr. Sec’d. Bond, Ser B. (Cayman Islands)	Caa2	10.41%	12/31/20		10,295		8,853,700
AES Eastern Energy LP, Ser. 99-A	Ba1	9.00%	01/02/17		3,193		3,531,490
Aquila, Inc., Sr. Notes	Caa1	6.875%	10/01/04		1,600		1,600,000
Aquila, Inc., Sr. Notes	Caa1	7.625%	11/15/09		475		466,688

SEE NOTES TO FINANCIAL STATEMENTS.

B42




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


CORPORATE BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Utilities (cont’d.)
Aquila, Inc., Sr. Notes	Caa1	9.95%	02/01/11	$	3,635	$	3,880,362
Beaver Valley II Funding Corp., Debs.	Baa3	9.00%	06/01/17		4,000		4,597,680
Calpine Canada Energy Finance, Gtd. Notes (Canada)	Caa1	8.50%	05/01/08		2,500		1,993,750
Calpine Corp., Sr. Notes(b)	Caa1	8.50%	02/15/11		9,140		7,232,025
Calpine Corp., Sr. Notes(b)	Caa1	8.75%	07/15/07		5,000		4,100,000
Calpine Corp., Sr. Sec’d. Notes(b)	B(g)	8.75%	07/15/13		3,025		2,949,375
CMS Energy Corp., Sr. Notes(b)	B3	8.50%	04/15/11		2,580		2,786,400
CMS Energy Corp., Sr. Notes	B3	9.875%	10/15/07		2,725		3,038,375
Cogentrix Energy, Inc., Gtd. Notes, Ser. B	B1	8.75%	10/15/08		700		705,250
Cogentrix Energy, Inc., Sr. Notes	B1	8.10%	03/15/04		938		935,655
Dynegy Holdings, Inc., Debs.	Caa2	7.125%	05/15/18		675		578,812
Dynegy Holdings, Inc., Debs.	Caa2	7.625%	10/15/26		1,425		1,230,844
Dynegy Holdings, Inc., Sr. Notes(b)	Caa2	6.875%	04/01/11		1,210		1,114,712
Dynegy Holdings, Inc., Sr. Notes(b)	Caa2	8.75%	02/15/12		6,365		6,420,694
Dynegy Holdings, Inc., Sr. Sec’d. Notes(b)	B3	10.125%	07/15/13		2,705		3,110,750
Edison Mission Energy, Sr. Notes(b)	B2	7.73%	06/15/09		6,375		6,072,187
Edison Mission Energy, Sr. Notes	B2	9.875%	04/15/11		750		780,000
Empresa Nacional de Electricidad SA, Notes (Chile)(b)	Ba2	8.35%	08/01/13		5,250		5,901,751
Empresa Nacional de Electricidad SA, Notes (Chile)	Ba2	8.625%	08/01/15		4,700		5,354,714
Homer City Funding LLC, Gtd. Notes	Ba2	8.137%	10/01/19		2,125		2,284,375
Midland Funding II, Debs.	Ba3	13.25%	07/23/06		2,875		3,363,750
Midland Funding II Corp., Debs.	Ba3	11.75%	07/23/05		5,943		6,418,576
Midwest Generation LLC, Pass-thru Certs., Ser. A	B2	8.30%	07/02/09		1,640		1,709,761
Mirant Americas Generation LLC, Sr. Notes(b)(c)	Caa3	7.20%	10/01/08		1,050		887,250
Mission Energy Holding Co., Sr. Sec’d. Notes	Caa2	13.50%	07/15/08		1,215		1,190,700
NRG Energy, Inc.(b)	B2	8.00%	12/15/13		4,900		5,151,125
Orion Power Holdings, Inc., Sr. Notes	B2	12.00%	05/01/10		5,055		6,141,825
Reliant Energy Mid-Atlantic Power, Pass-thru Certs., Ser. B	B1	9.237%	07/02/17		1,791		1,828,661
Reliant Energy Mid-Atlantic Power, Pass-thru Certs., Ser. C	B1	9.681%	07/02/26		250		255,224
Reliant Resources, Inc., Sr. Sec’d. Note(b)	B1	9.50%	07/15/13		3,900		4,173,000
Westar Energy, Inc., First Mtge. Notes	Ba1	7.875%	05/01/07		2,205		2,464,088
York Power Funding, Sr. Sec’d. Notes (Cayman Islands) (cost $2,518,597; purchased 07/31/98)(c)(e)(f)	D	12.00%	10/30/07		2,519		1,763,018

							136,928,911

TOTAL CORPORATE BONDS (cost $1,240,416,828)							1,318,278,149

CONVERTIBLE BONDS — 0.8%
Nortel Networks Corp., (Canada)(b)	B3	4.25%	09/01/08		3,810		3,605,213
Solectron Corp.	B1	zero coupon	11/20/20		4,650		2,638,875
Tyco International Group SA (Luxembourg)	Ba2	2.75%	01/15/18		2,950		3,764,937
Tyco International Group SA (Luxembourg)	Ba2	3.125%	01/15/23		1,650		2,256,375

TOTAL CONVERTIBLE BONDS (cost $9,995,344)							12,265,400

FOREIGN GOVERNMENT OBLIGATIONS — 2.3%
Federal Republic of Brazil (Brazil)	B2	8.00%	04/15/14		1,453		1,429,524
Federal Republic of Brazil (Brazil)(b)	B2	9.25%	10/22/10		3,500		3,762,500
Federal Republic of Brazil (Brazil)	B2	10.00%	08/07/11		1,920		2,121,600
Federal Republic of Brazil (Brazil)	B2	11.00%	08/17/40		3,485		3,824,788
Federal Republic of Colombia (Colombia)	Ba2	9.75%	04/23/09		5,255		5,767,362
Federal Republic of Colombia (Colombia)	Ba2	10.00%	01/23/12		1,852		2,027,940
Federal Republic of El Salvador (El Salvador)	Baa3	7.75%	01/24/23		3,015		3,173,288
Federal Republic of Panama (Panama)	Ba1	9.625%	02/08/11		5,000		5,775,000

SEE NOTES TO FINANCIAL STATEMENTS.

B43




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


FOREIGN GOVERNMENT OBLIGATIONS (Continued)	Moody’s Rating (Unaudited)	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Republic of Venezuela, (Venezuela)(b)	Caa1	10.75%	09/19/13	$	4,000	$	4,270,000
Republic of Venezuela, (Venezuela)	B-	10.75%	09/19/13		1,100		1,174,250

TOTAL FOREIGN GOVERNMENT OBLIGATIONS (cost $30,259,149)							33,326,252

					Shares
COMMON STOCKS — 0.5%
Adelphia Business Solutions, Inc. (Class “B” Stock)(a)(c)					25,755		232
Birch Telecom, Inc.(a)					15,652		157
Classic Communications, Inc.(a)(e)					6,000		60
GenTek, Inc.(a)					7,489		265,108
IMPSAT Fiber Networks, Inc., (Argentina)(a)					29,831		228,207
Kaiser Group Holdings, Inc., 7.00%(a)					47,054		1,052,833
Link Energy LLC(a)					31,915		215,426
NTL, Inc.(a)					30,930		2,157,368
Premier Cruises, Ltd., (cost $0; purchased 09/15/99)(a)(e)(f)					74,058		74
PSF Group Holdings, Inc.(a)(e)					220		330,375
RCN Corp.(a)					156		125
Samuels Jewelers, Inc.(a)					36,825		829
Sheffield Steel Corp.(a)					135,158		540,632
Star Gas Partners LP					2,561		62,616
Stellex Technologies, Inc.(a)(e)					859		1
Systems Holding, Inc.(a)(e)					29,402		294
Trism, Inc.(a)					82,628		41
UnitedGlobalCom, Inc., (Class “A” Stock)					212,736		1,804,003
York Research Corp.(a)(e)					4,155		0

TOTAL COMMON STOCKS (cost $18,295,311)							6,658,381

PREFERRED STOCKS — 1.8%
Adelphia Communications Corp., PIK, 13.00%					5,000		75,000
AmeriKing, Inc., PIK, 13.00%					36,672		367
CSC Holdings, Inc., 11.125%					55,454		5,822,670
Dobson Communications Corp., PIK, 12.25%					3,045		3,242,925
Eagle-Picher Holdings, Inc., 11.75%					170		1,241,000
Electronic Retailing Systems International, (cost $0; purchased 09/09/97)(e)(f)					1,046		10
Eott Energy Partners LP, Sr. Notes, PIK, 10.00%					277,806		273,639
Global Crossing Holdings, Ltd., PIK, 7.00%					17,103		171
Kaiser Government Programs, Inc., 7.00%(e)					39,057		391
Kaiser Group Holdings, Inc., 7.00%					24,882		1,281,423
McLeodUSA, Inc., 2.50%					18,063		137,640
New Millenium Homes, 10.00%(e)					3,000		30
NTL Europe, Inc., 10.00%					14		105
Paxon Communications, Inc., PIK, 13.25%					1,035		9,522,000
PRIMEDIA, Inc., 10.00%					20,918		2,049,964
TVN Entertainment Corp., 14.00%(e)					160,625		353,375
World Access, Inc., 13.25%, (cost $2,000,000; purchased 02/11/00)(e)(f)					1,435		1
Xerox Corp., 6.25%					16,920		2,195,370

TOTAL PREFERRED STOCKS (cost $34,283,259)							26,196,081

WARRANTS(a)			Expiration Date	Units
Allegiance Telecommunications, Inc.			02/03/08		3,800		475
Asia Pulp & Paper, Ltd., (cost $0; purchased 03/09/00)(f)			03/15/05		1,295		0
Bell Technology Group, Ltd.			05/01/05		1,250		13
Bestel SA de CV, (Mexico)			05/15/05		2,500		0
Electronic Retailing Systems(e)			02/01/04		2,000		20
GenTek, Inc.			10/31/06		14,423		144
GenTek, Inc.			10/31/08		7,516		75

SEE NOTES TO FINANCIAL STATEMENTS.

B44




		*HIGH YIELD BOND PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


WARRANTS (Continued)	Expiration Date	Units	Value (Note 2)
GenTek, Inc.	10/31/10	3,671	$	37
GT Group Telecommunication, Inc., (Canada)	02/01/10	3,050		763
HF Holdings, Inc.(e)	09/27/09	18,093		18
ICG Communications, Inc.	10/15/05	20,790		208
McLeodUSA, Inc.	04/16/07	40,027		20,414
MGC Communications, Inc.	10/01/04	1,950		115
National Restaurant Enterprises Holdings, Inc.	05/15/08	250		0
Price Communications Corp.	08/01/07	6,880		248,010
Primus Telecommunications Group	08/01/04	1,500		1,875
Star Choice Communications, Inc., (cost $0; purchased 12/18/97)(f)	12/15/05	69,480		277,920
Sterling Chemical Holdings, Inc.	08/15/08	560		0
Tellus Corp.(e)	09/15/05	42,866		33
Verado Holdings, Inc., Ser. B	04/15/08	1,175		464
Versatel Telecommunications	05/15/08	2,000		20
Viasystems Group, Inc.(e)	01/31/10	45,109		0
Wam!Net, Inc.	03/01/05	3,000		30
XM Satellite Radio, Inc.	03/03/10	5,005		51

TOTAL WARRANTS (cost $3,101,736)				550,685

RIGHT
Netia Holdings BV
(cost $0)		302,168		322,924

TOTAL LONG-TERM INVESTMENTS (cost $1,336,351,627)				1,397,597,872



SHORT-TERM INVESTMENT — 28.6%	Shares
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series, (Note 4)(d) (cost $419,462,644)	419,462,644		419,462,644

TOTAL INVESTMENTS — 123.9% (cost $1,755,814,271; Note 6)			1,817,060,516
LIABILITIES IN EXCESS OF OTHER ASSETS — (23.9)%			(350,373,328	)

TOTAL NET ASSETS — 100%		$	1,466,687,188

The following abbreviations are used in portfolio descriptions:


CBO		Collateralized Bond Obligation
L.P.		Limited Partnership
M.T.N.		Medium Term Note
NR		Not rated by Moody’s or Standard & Poor’s
PIK		Payment-in-kind

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $362,328,575; cash collateral of $377,052,545 was received with which the portfolio purchased securities.

(c)	Represents issuer in default on interest payments, non-income producing security.

(d)	Represents security, or a portion thereof, purchased with cash collateral received for securities of loan.

(e)	Indicates a fair valued security.

(f)	Indicates a restricted security; the aggregate cost of the restricted securities is $12,895,851. The aggregate value, $8,159,935 is approximately 0.6% of net assets.

(g)	Standard & Poor’s rating.

(h)	Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(i)	Amount is actual; not rounded to thousands.

SEE NOTES TO FINANCIAL STATEMENTS.

B45




		*JENNISON PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.9%
COMMON STOCKS	Shares	Value (Note 2)
Automobiles — 0.9%
Harley-Davidson, Inc.(b)	357,300	$	16,982,469

Beverages — 0.8%
Anheuser-Busch Companies, Inc.	275,600		14,518,608

Biotechnology — 7.1%
Amgen, Inc.(a)	928,300		57,368,940
Genentech, Inc.(a)(b)	376,900		35,266,533
Gilead Sciences, Inc.(a)(b)	452,100		26,285,094
MedImmune, Inc.(a)	451,200		11,460,480

			130,381,047

Capital Markets — 5.2%
Goldman Sachs Group, Inc.(b)	354,600		35,009,658
Merrill Lynch & Co., Inc.	544,000		31,905,600
State Street Corp.	545,900		28,430,472

			95,345,730

Commercial Services & Supplies — 1.0%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	279,700		19,019,600

Communications Equipment — 4.4%
Cisco Systems, Inc.(a)(b)	2,762,900		67,110,841
Motorola, Inc.	290,800		4,091,556
Nokia Oyj, ADR (Finland)(a)(b)	324,100		5,509,700
QUALCOMM, Inc.	100,900		5,441,537

			82,153,634

Computers & Peripherals — 6.4%
Dell, Inc.(a)	1,244,900		42,276,804
EMC Corp.(a)(b)	1,937,600		25,033,792
Hewlett-Packard Co.	809,900		18,603,403
International Business Machines Corp.	357,000		33,086,760

			119,000,759

Consumer Finance — 2.6%
American Express Co.(b)	982,000		47,361,860

Diversified Financials — 2.4%
Citigroup, Inc.(b)	898,700		43,622,898

Electronic Equipment & Instruments — 1.9%
Agilent Technologies, Inc.(a)	1,214,000		35,497,360

Energy Equipment & Services — 3.0%
BJ Services Co.(a)	501,000		17,985,900
Schlumberger Ltd.(b)	680,000		37,209,600

			55,195,500

Food & Staples Retailing — 4.0%
Costco Wholesale Corp.(a)	493,200		18,337,176
Wal-Mart Stores, Inc.	678,200		35,978,510
Whole Foods Market, Inc.(a)(b)	282,900		18,991,077

			73,306,763

Health Care Equipment & Supplies — 1.5%
Alcon, Inc. (Switzerland)(b)	88,000		5,327,520
Medtronic, Inc.	444,400		21,602,284

			26,929,804

Health Care Providers & Services — 0.5%
Caremark Rx, Inc.(a)(b)	357,700		9,060,541


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Hotels Restaurants & Leisure — 3.7%
Marriott International, Inc. (Class “A” Stock)	198,700	$	9,179,940
McDonald’s Corp.	887,300		22,031,659
Starbucks Corp.(a)	1,092,700		36,124,662

			67,336,261

Household Durables — 0.2%
Harman International Industries, Inc.	56,600		4,187,268

Household Products — 0.9%
Procter & Gamble Co. (The)(b)	161,500		16,130,620

Industrial Conglomerates — 3.5%
3M Co.	219,700		18,681,091
General Electric Co.	1,489,300		46,138,514

			64,819,605

Insurance — 1.5%
American International Group, Inc.(b)	424,537		28,138,312

Internet & Catalog Retail — 2.3%
eBay, Inc.(a)(b)	386,800		24,983,412
InterActiveCorp(a)(b)	538,700		18,278,091

			43,261,503

Internet Software & Services — 1.5%
Yahoo!, Inc.(a)(b)	605,800		27,363,986

Media — 6.0%
Clear Channel Communications, Inc.	406,300		19,027,029
Hughes Electronics Corp.(a)(b)	718,503		11,891,226
Univision Communications, Inc. (Class “A” Stock)(a)(b)	727,500		28,874,475
Viacom, Inc. (Class “B” Stock)	1,163,219		51,623,659

			111,416,389

Oil & Gas — 2.0%
Total SA (France)(a)	193,780		36,028,174

Personal Products — 1.0%
Avon Products, Inc.	281,900		19,025,431

Pharmaceuticals — 9.2%
Allergan, Inc.(b)	231,200		17,758,472
AstraZeneca PLC, ADR (United Kingdom)(b)	455,300		22,027,414
Forest Laboratories, Inc.(a)	170,400		10,530,720
Novartis AG, ADR (Switzerland)(a)	480,800		22,063,912
Pfizer, Inc.	1,262,191		44,593,208
Roche Holdings Group, ADR (Switzerland)(a)	260,800		26,306,687
Teva Pharmaceutical Industries Ltd., ADR (Israel)(b)	472,200		26,778,477

			170,058,890

Semiconductor Equipment & Products — 10.8%
Altera Corp.(a)	951,600		21,601,320
AMIS Holdings, Inc.(a)	273,000		4,990,440
Analog Devices, Inc.	334,400		15,265,360

SEE NOTES TO FINANCIAL STATEMENTS.

B46




		*JENNISON PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductor Equipment & Products (cont’d.)
Applied Materials, Inc.(a)	501,500	$	11,258,675
Intel Corp.(b)	2,050,200		66,016,440
KLA-Tencor Corp.(a)(b)	476,800		27,973,856
Marvell Technology Group Ltd. (Bermuda)(a)(b)	122,300		4,638,839
Texas Instruments, Inc.	1,612,400		47,372,312

			199,117,242

Software — 6.7%
Electronic Arts, Inc.(a)(b)	395,700		18,906,546
Microsoft Corp.	2,040,300		56,189,862
PeopleSoft, Inc.(a)	656,500		14,968,200
SAP AG, ADR (Germany)(a)(b)	805,300		33,468,254

			123,532,862

Specialty Retail — 5.5%
Bed Bath & Beyond, Inc.(a)	1,000,800		43,384,680
CarMax, Inc.(a)	56,500		1,747,545
Lowe’s Companies, Inc. (The)(b)	344,900		19,104,011
Tiffany & Co.(b)	844,000		38,148,800

			102,385,036


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Wireless Telecommunication Services — 1.4%
Vodafone Group PLC, ADR (United Kingdom)(b)	1,062,000	$	26,592,480

TOTAL LONG-TERM INVESTMENTS (cost $1,553,767,274)			1,807,770,632

SHORT-TERM INVESTMENT — 29.7%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series (cost $548,869,541; Note 4)(c)	548,869,541		548,869,541

TOTAL INVESTMENTS — 127.6% (cost $2,102,636,815; Note 6)			2,356,640,173
LIABILITIES IN EXCESS OF OTHER ASSETS — (27.6)%			(509,935,538	)

NET ASSETS — 100%		$	1,846,704,635

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $478,549,044; cash collateral of $495,524,246 was received with which the portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B47




		*JENNISON 20/20 FOCUS PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.1%	Shares	Value (Note 2)
COMMON STOCKS — 93.1%
Aerospace & Defense — 2.1%
Northrop Grumman Corp.	22,400	$	2,141,440

Biotechnology — 5.7%
Amgen, Inc.(a)	44,700		2,762,460
Genentech, Inc.(a)	33,500		3,134,595

			5,897,055

Capital Markets — 7.0%
Lehman Brothers Holdings, Inc.	25,100		1,938,222
Merrill Lynch & Co., Inc.	45,600		2,674,440
State Street Corp.	51,100		2,661,288

			7,273,950

Communications Equipment — 2.9%
Cisco Systems, Inc.(a)	123,800		3,007,102

Computers & Peripherals — 1.8%
Hewlett-Packard Co.	82,900		1,904,213

Consumer Finance — 2.9%
American Express Co.	62,100		2,995,083

Diversified Financials — 2.6%
Citigroup, Inc.	55,700		2,703,678

Diversified Telecommunication Services — 1.6%
SBC Communications, Inc.	64,500		1,681,515

Electronic Equipment & Instruments — 2.9%
Agilent Technologies, Inc.(a)	103,300		3,020,492

Energy Equipment & Services — 10.5%
BJ Services Co.(a)	83,100		2,983,290
ENSCO International, Inc.(a)	85,200		2,314,884
Rowan Cos., Inc.	100,000		2,317,000
Schlumberger, Ltd.	61,500		3,365,280

			10,980,454

Food & Drug Retailing — 2.8%
Kroger Co.(a)	157,700		2,919,027

Hotels, Restaurants & Leisure — 2.6%
Starbucks Corp.(a)	80,100		2,648,106

Industrial Conglomerates — 5.0%
General Electric Co.	88,800		2,751,024
Tyco International, Ltd. (Bermuda)	93,400		2,475,100

			5,226,124

Insurance — 5.7%
Allstate Corp.	27,900		1,200,258
Hartford Financial Services Group, Inc.	24,000		1,416,720
XL Capital, Ltd. (Cayman Islands) (Class “A” Stock)	43,000		3,334,650

			5,951,628

Media — 8.9%
Knight-Ridder, Inc.	10,900		843,333
Liberty Media Corp. (Class “A” Stock)(a)	200,100		2,379,189
Univision Communications, Inc. (Class “A” Stock)(a)	76,900		3,052,161
Viacom, Inc. (Class “B” Stock)	66,400		2,946,832

			9,221,515


LONG-TERM INVESTMENTS (Continued)	Shares		Value (Note 2)
COMMON STOCKS (cont’d.)
Office Electronics — 4.0%
Xerox Corp.(a)		302,100	$	4,168,980

Paper & Forest Products — 3.9%
Boise Cascade Corp.		51,800		1,702,148
Georgia-Pacific Corp.		78,300		2,401,461

				4,103,609

Pharmaceuticals — 1.6%
Novartis AG, ADR (Switzerland)		37,000		1,697,930

Semiconductor Equipment & Products — 6.4%
Intel Corp.		82,600		2,659,720
International Rectifier Corp.(a)		30,600		1,511,946
Texas Instruments, Inc.		85,300		2,506,114

				6,677,780

Software — 3.5%
Electronic Arts, Inc.(a)		23,700		1,132,386
Microsoft Corp.		91,200		2,511,648

				3,644,034

Specialty Retail — 5.2%
Bed Bath & Beyond, Inc.(a)		61,000		2,644,350
Tiffany & Co.		61,000		2,757,200

				5,401,550

Tobacco — 3.5%
Altria Group, Inc.		67,400		3,667,908

TOTAL COMMON STOCKS (cost $82,003,719)				96,933,173

PREFERRED STOCK — 2.0%
Media
News Corp. Ltd., ADR (Australia) (cost $1,546,713)		69,800		2,111,450

TOTAL LONG-TERM INVESTMENTS (cost $83,550,432)				99,044,623

SHORT-TERM INVESTMENTS — 5.1%
Mutual Fund — 5.0%
Dryden Core Investment Fund—Taxable Money Market Series (Note 4)		5,222,603		5,222,603

	Principal Amount (000)
Repurchase Agreement — 0.1%
State Street Bank & Trust Company, 0.50%, 1/2/04(b)	$	86		85,507

TOTAL SHORT-TERM INVESTMENTS (cost $5,308,110)				5,308,110

TOTAL INVESTMENTS — 100.2% (cost $88,858,542; Note 6)				104,352,733
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.2)%				(162,413	)

NET ASSETS — 100%			$	104,190,320

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $85,509 due 1/2/04. The value of the collateral including accrued interest was $93,446. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B48




		*MONEY MARKET PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Bank Notes — 1.8%
American Express Centurion Bank(a)	1.11%	01/29/04	$	17,000	$	16,999,447

Certificates of Deposit — 28.9%
Banco Bilbao Vizcaya	1.20%	08/27/04		15,000		15,000,000
BNP Paribas SA	1.10%	03/03/04		10,000		10,000,000
BNP Paribas SA	1.33%	04/13/04		20,000		20,000,000
BNP Paribas SA	1.15%	07/22/04		10,000		9,999,443
Citibank NA	1.09%	02/05/04		25,000		25,000,928
Credit Agricole Indosuez	1.23%	08/04/04		15,000		14,999,111
Credit Agricole Indosuez	1.44%	10/27/04		15,000		15,000,000
Danske Bank	1.32%	08/11/04		11,000		11,004,710
HBOS Treasury Services PLC	1.12%	02/23/04		48,000		48,000,000
Natexis Banque Populaires	1.10%	03/17/04		17,000		17,000,000
Royal Bank of Scotland PLC	1.07%	01/12/04		20,000		20,000,228
Toronto Dominion	1.345%	04/16/04		20,000		20,011,513
Wells Fargo Bank NA	1.08%	01/12/04		14,000		13,999,979
Wells Fargo Bank NA	1.05%	01/30/04		30,000		29,999,879

						270,015,791

Commercial Paper — 32.6%
Alliance & Leicester PLC	1.09%	03/19/04		6,000		5,985,830
Amsterdam Funding Corp.	1.09%	01/15/04		5,766		5,763,556
Aventis SA	1.10%	01/28/04		14,590		14,577,963
Danske Bank	1.10%	02/23/04		3,100		3,094,980
Falcon Asset Securitization Corp.	1.08%	01/27/04		41,355		41,322,743
Long Lane Master Trust IV	1.12%	01/20/04		1,000		999,409
Long Lane Master Trust IV	1.12%	03/25/04		5,043		5,029,821
Market Street Funding Corp.	1.10%	01/29/04		4,539		4,535,117
J.P. Morgan Chase & Co.	1.09%	01/28/04		22,000		21,982,015
Natexis Banque Populaires	1.11%	02/20/04		30,000		29,953,750
Nationwide Building Society	1.09%	03/05/04		15,000		14,970,933
New Center Asset Trust	1.10%	02/25/04		4,000		3,993,278
New Center Asset Trust	1.10%	03/19/04		5,000		4,988,137
Nordea North America, Inc.	1.08%	01/22/04		1,670		1,668,948
Nyala Funding LLC	1.16%	02/18/04		7,000		6,989,173
Old Line Funding	1.09%	01/15/04		20,000		19,991,522
Park Granada LLC	1.12%	01/16/04		4,382		4,379,955
Prudential PLCx	1.09%	03/05/04		15,000		14,970,933
Sheffield Receivables Corp.	1.09%	01/26/04		20,000		19,984,861
Spintab/Swedmortgage AB	1.09%	03/16/04		31,000		30,929,604
Stadshypotek Delaware	1.10%	02/19/04		48,000		47,928,134

						304,040,662

Loan Participation — 0.7%
Countrywide Homes Loan, Inc.	1.15%	01/23/04		3,000		3,000,000
Countrywide Homes Loan, Inc.	1.15%	01/30/04		4,000		4,000,000

						7,000,000

Other Corporate Obligations — 22.4%
American Express Credit Corp.	1.20%	01/05/04		8,000		8,000,000
GE Capital Assurances Co. (cost $8,000,000; purchased 7/17/2003)(a)(b)	1.229%	01/22/04		8,000		8,000,000
General Electric Capital Corp.(a)	1.25%	01/09/04		15,000		15,000,000
General Electric Capital Corp.(a)	1.23%	01/19/04		24,000		24,000,000
Goldman Sachs Group, LP(a)	1.312%	03/15/04		45,000		45,000,000
Merrill Lynch & Co., Inc.(a)	1.28%	01/02/04		19,000		19,007,213
Merrill Lynch & Co., Inc.(a)	1.295%	01/12/04		28,000		28,000,000
Metropolitan Life Insurance (cost $9,000,000; purchased 9/26/2002)(a)(b)	1.242%	01/02/04		9,000		9,000,000
Metropolitan Life Insurance (cost $9,000,000; purchased 2/05/2003)(a)(b)	1.26%	02/09/04		9,000		9,000,000
J.P. Morgan Chase & Co.	1.282%	01/15/04		25,000		25,000,000
Pacific Life Insurance (cost $7,000,000; purchased 12/16/2003)(a)(b)	1.288%	03/16/04		7,000		7,000,000

SEE NOTES TO FINANCIAL STATEMENTS.

B49




		*MONEY MARKET PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 2)
Other Corporate Obligations (cont’d.)
Royal Bank of Canada	1.15%	01/12/04	$	5,000	$	5,000,000
Travelers Insurance Co. (cost $7,000,000; purchased 6/30/2003)(a)(b)	1.23%	01/08/04		7,000		7,000,000

						209,007,213

Repurchase Agreement — 1.3%
Greenwich Capital Management(c)	1.01%	01/02/04		11,738		11,738,000

U.S. Government Obligations — 12.0%
Federal Home Loan Bank	1.25%	07/02/04		15,000		15,000,000
Federal Home Loan Mortgage Corp.	1.30%	04/22/04		15,000		14,939,567
Federal Home Loan Mortgage Corp.	1.43%	09/03/04		45,000		45,000,000
Federal National Mortgage Association	1.13%	04/28/04		15,000		14,944,442
Federal National Mortgage Association	5.625%	05/14/04		10,000		10,154,422
Federal National Mortgage Association	6.50%	08/15/04		5,000		5,162,839
Federal National Mortgage Association	1.47%	09/22/04		7,000		7,000,000

						112,201,270

TOTAL INVESTMENTS — 99.7% (amortized cost $931,002,383; Note 6)(d)						931,002,383

OTHER ASSETS IN EXCESS OF LIABILITIES — 0.3%						2,648,356

TOTAL NET ASSETS — 100.0%					$	933,650,739

(a)	Indicates a variable rate security. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at December 31, 2003.

(b)	Indicates a restricted security and deemed illiquid. The aggregate cost and value of restricted securities is $40,000,000, and represents 4.3% of net assets.

(c)	Greenwich Capital Repurchase Agreement, repurchase price $11,738,650 due 1/2/04. The value of the collateral including accrued interest was $11,973,016. Collateralized by United States Treasury or federal agency obligations.

(d)	Federal income tax basis is the same as for financial reporting purposes.

The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2003 was as follows:


Commercial Banks	41.6	%
Life Insurance	20.4	%
Asset Backed Securities	16.1	%
Federal Credit Agencies	12.0	%
Short Term Business Credit	4.2	%
Mortgage Bankers	3.8	%
Pharmaceuticals	1.6	%

	99.7	%
Other assets in excess of liabilities	0.3	%

	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

B50




		*SMALL CAPITALIZATION STOCK PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.2%
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.2%
ADVO, Inc.(b)	39,703	$	1,260,967

Aerospace — 1.7%
AAR Corp.(a)	41,955		627,227
Alliant Techsystems, Inc.(a)	50,976		2,944,374
Curtiss-Wright Corp.(b)	27,216		1,224,992
DRS Technologies, Inc.(a)	35,381		982,884
GenCorp, Inc.	57,987		624,520
Kaman Corp. (Class “A” Stock)	29,800		379,354
Moog, Inc. (Class “A” Stock)(a)	22,720		1,122,368
Trimble Navigation, Ltd.(a)	43,617		1,624,297
Triumph Group, Inc.(a)	20,880		760,032

			10,290,048

Agricultural Products & Services — 0.2%
Delta & Pine Land Co.	50,258		1,276,553

Airlines — 0.5%
Atlantic Coast Airlines Holdings, Inc.(a)	59,762		591,644
Frontier Airlines, Inc.(a)	46,399		661,650
Mesa Air Group, Inc.(a)(b)	41,470		519,204
SkyWest, Inc.	76,283		1,382,248

			3,154,746

Apparel — 1.1%
Fossil, Inc.(a)	61,412		1,720,150
Genesco, Inc.(a)	28,640		433,323
Pacific Sunwear of California, Inc.(a)	103,249		2,180,619
Phillips-Van Heusen Corp.	40,049		710,469
Russell Corp.	42,803		751,621
Wolverine World Wide, Inc.	52,951		1,079,142

			6,875,324

Appliances & Home Furnishings — 0.1%
Applica, Inc.(a)	31,203		237,143
Fedders Corp.	40,051		288,367
Salton, Inc.(a)(b)	14,750		192,487

			717,997

Autos – Cars & Trucks — 0.5%
Midas, Inc.(a)	20,070		287,001
Myers Industries, Inc.	39,751		481,782
Standard Motor Products, Inc.	26,005		315,961
TBC Corp.(a)	28,761		742,321
Tower Automotive, Inc.(a)	74,269		507,257
Wabash National Corp.(a)(b)	34,125		999,863

			3,334,185

Banks and Savings & Loans — 6.6%
Anchor BanCorp Wisconsin, Inc.	30,539		760,421
BankUnited Financial Corp. (Class “A” Stock)(a)	39,024		1,006,429
Boston Private Financial Holdings, Inc.	32,150		798,606
Brookline Bancorp, Inc.	77,521		1,189,172
Chittenden Corp.	48,178		1,620,708
Commercial Federal Corp.	55,638		1,486,091
Community First Bankshares, Inc.	49,505		1,432,675
Dime Community Bancshares	33,752		1,038,212
Downey Financial Corp.	36,877		1,818,036


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Banks and Savings & Loans (cont’d.)
East West Bancorp, Inc.	32,050	$	1,720,444
First Bancorp/Puerto Rico	52,825		2,089,229
First Midwest Bancorp, Inc.	61,477		1,992,470
First Republic Bank(a)	19,160		685,928
FirstFed Financial Corp.(a)	22,431		975,748
Flagstar Bancorp, Inc.(b)	79,709		1,707,367
Gold Banc Corp., Inc.	52,020		731,401
Provident Bankshares Corp.	32,395		953,709
Republic Bancorp, Inc.	83,806		1,130,543
Riggs National Corp.	37,733		623,726
Seacoast Financial Services Corp.	33,995		931,803
Southwest Bancorporation of Texas, Inc.(a)	45,151		1,754,116
Staten Island Bancorp, Inc.	77,488		1,743,480
Sterling Bancshares, Inc.	58,519		780,058
Susquehanna Bancshares, Inc.	52,571		1,314,801
TrustCo Bank Corp.	98,195		1,291,264
UCBH Holdings, Inc.	59,457		2,317,039
Umpqua Holdings Corp.	37,400		777,546
United Bankshares, Inc.	57,994		1,809,413
Waypoint Financial Corp.	44,414		963,340
Whitney Holding Corp.	53,347		2,186,694
Wintrust Financial Corp.	25,984		1,171,878

			40,802,347

Chemicals — 1.7%
A. Schulman, Inc.	39,587		843,995
Arch Chemicals, Inc.	29,691		761,871
Cambrex Corp.	34,062		860,406
Georgia Gulf Corp.	42,893		1,238,750
H.B. Fuller Co.	37,508		1,115,488
MacDermid, Inc.	39,982		1,368,984
OM Group, Inc.(a)	37,400		979,506
Omnova Solutions, Inc.(a)	52,731		253,109
Penford Corp.	11,350		155,835
PolyOne Corp.(a)	121,054		773,535
Quaker Chemical Corp.	12,660		389,295
TETRA Technologies, Inc.(a)	28,915		700,899
WD-40 Co.	22,191		784,674
Wellman, Inc.	42,072		429,555

			10,655,902

Collectibles & Gifts — 0.4%
Action Performance Cos., Inc.	23,593		462,423
Cross (A.T.) Co. (Class “A” Stock)(a)	19,740		131,666
Department 56, Inc.(a)	17,275		226,303
Enesco Group, Inc.(a)	18,541		191,343
Lennox International, Inc.	77,549		1,295,068

			2,306,803

Commercial Services — 3.4%
ABM Industries, Inc.	65,143		1,134,140
Arbitron, Inc.(a)	40,019		1,669,593
Bowne & Co., Inc.	44,667		605,684
Central Parking Corp.	47,603		710,713
Coinstar, Inc.(a)(b)	27,964		505,030
Consolidated Graphics, Inc.(a)	17,747		560,450
CPI Corp.	10,657		215,378

SEE NOTES TO FINANCIAL STATEMENTS.

B51




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Commercial Services (cont’d.)
Dendrite International, Inc.(a)	53,590	$	839,755
eFunds Corp.(a)	62,062		1,076,776
Global Payments, Inc.	49,292		2,322,639
Hooper Holmes, Inc.	85,403		527,791
Information Holdings, Inc.(a)	27,510		607,971
Insurance Auto Auctions, Inc.(a)	15,151		197,721
John H. Harland Co.	37,067		1,011,929
Kroll, Inc.(a)(b)	55,095		1,432,470
Labor Ready, Inc.(a)	53,376		699,226
MAXIMUS, Inc.(a)	27,577		1,079,088
MemberWorks, Inc.(a)(b)	14,271		387,743
Mobile Mini, Inc.(a)	18,864		371,998
NCO Group, Inc.(a)	34,279		780,533
Nelson Thomas, Inc.	18,950		366,303
On Assignment, Inc.(a)	33,180		172,868
PAREXEL International Corp.(a)	34,182		555,799
Pre-Paid Legal Services, Inc.(a)(b)	22,799		595,510
Rewards Network, Inc.(a)(b)	31,884		339,883
Roto-Rooter, Inc.	13,060		602,066
SOURCECORP, Inc.(a)	21,192		543,151
Startek, Inc.	18,869		769,666
Volt Information Sciences, Inc.(a)	20,033		452,746

			21,134,620

Computer Services — 3.8%
Actel Corp.(a)	33,449		806,121
Adaptec, Inc.(a)	143,565		1,267,679
Agilysys, Inc.	42,348		472,180
American Management Systems, Inc.(a)	55,883		842,157
Avid Technology, Inc.(a)	40,568		1,947,264
Black Box Corp.(b)	23,724		1,092,965
Brooktrout, Inc.(a)	16,429		206,677
CACI International, Inc. (Class “A” Stock)(a)	38,134		1,854,075
Carreker Corp.(a)	30,103		421,743
Cerner Corp.(a)(b)	46,705		1,767,784
Ciber, Inc.(a)(b)	84,194		729,120
FactSet Research Systems, Inc.(b)	44,639		1,705,656
FileNet Corp.(a)	49,521		1,341,029
Hutchinson Technology, Inc.(a)	34,246		1,052,722
Insight Enterprises, Inc.(a)	61,417		1,154,640
Manhattan Associates, Inc.(a)	39,483		1,091,310
Mercury Computer Systems, Inc.(a)	27,708		689,929
Midway Games, Inc.(a)(b)	73,739		286,107
NYFIX, Inc.(a)	41,933		333,367
Phoenix Technology, Ltd.(a)	32,015		258,681
Pinnacle Systems, Inc.(a)	87,490		746,290
Progress Software Corp.(a)	46,036		941,896
QRS Corp.(a)	20,982		170,374
Radiant Systems, Inc.(a)	36,553		307,411
RadiSys Corp.(a)	23,824		401,673
Standard Microsystems Corp.(a)	22,293		564,013
TALX Corp.	17,910		412,467
Teledyne Technologies, Inc.(a)	42,475		800,654

			23,665,984


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Construction — 2.6%
Butler Manufacturing Co.(a)	8,281	$	182,182
Coachmen Industries, Inc.	20,489		371,056
ElkCorp	25,913		691,877
Florida Rock Industries, Inc.	37,848		2,075,963
Insituform Technologies, Inc. (Class “A” Stock)(a)	34,839		574,843
M.D.C. Holdings, Inc.(b)	38,844		2,505,438
NVR, Inc.(a)(b)	9,439		4,398,574
Shaw Group, Inc.(a)	76,245		1,038,457
Simpson Manufacturing, Co., Inc.(a)	32,565		1,656,256
Standard Pacific Corp.(b)	43,356		2,104,934
Thomas Industries, Inc.	22,744		788,307

			16,387,887

Consumer Cyclical — 0.1%
JAKKS Pacific, Inc.(a)	33,048		434,912

Containers — 0.3%
AptarGroup, Inc.	47,867		1,866,813

Cosmetics & Soaps
Nature’s Sunshine Products, Inc.	18,306		154,686

Distribution/Wholesalers — 0.7%
Advanced Marketing Services, Inc.	25,118		286,345
Bell Microproducts, Inc. (Class “B” Stock)(a)	34,985		316,964
Castle (A.M.) & Co.(a)	20,813		151,935
SCP Pool Corp.(a)	46,710		1,526,483
United Stationers, Inc.(a)	44,603		1,825,155

			4,106,882

Diversified Manufacturing Operations — 1.4%
Acuity Brands, Inc.	55,147		1,422,793
Barnes Group, Inc.	30,007		969,526
CLARCOR, Inc.	33,407		1,473,249
CUNO, Inc.(a)	22,101		995,208
Griffon Corp.(a)(b)	38,918		788,479
Intermet Corp.	33,703		183,007
Lydall, Inc.(a)	21,387		217,933
Mueller Industries, Inc.(a)	45,171		1,552,075
Standex International Corp.	16,052		449,456
Valmont Industries, Inc.	31,345		725,637

			8,777,363

Drugs & Medical Supplies — 6.7%
Advanced Medical Optics, Inc.(a)(b)	38,701		760,475
American Medical Systems Holdings, Inc.(a)	43,636		951,265
ArthroCare Corp.(a)	27,264		667,968
Cephalon, Inc.(a)(b)	73,452		3,555,811
CIMA Labs, Inc.(a)	19,114		623,499
Coherent, Inc.(a)	39,326		935,959
CONMED Corp.(a)	38,268		910,779
CyroLife, Inc.(a)(b)	25,954		150,014
Diagnostic Products Corp.	37,997		1,744,442
Enzo Biochem, Inc.(a)	39,542		708,197

SEE NOTES TO FINANCIAL STATEMENTS.

B52




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
Haemonetics Corp.(a)	31,927	$	762,736
Hologic, Inc.(a)	26,012		450,788
ICU Medical, Inc.(a)(b)	18,040		618,411
IDEXX Laboratories, Inc.(a)(b)	46,036		2,130,546
INAMED Corp.(a)(b)	46,248		2,222,655
Integra LifeSciences Holdings(a)(b)	35,849		1,026,357
Invacare Corp.	40,913		1,651,658
Medicis Pharmaceutical Corp. (Class “A” Stock)(b)	36,201		2,581,131
NBTY, Inc.(a)	87,666		2,354,709
Noven Pharmaceuticals, Inc.(a)	29,693		451,631
Osteotech, Inc.(a)	22,530		198,264
Owens & Minor, Inc.	51,425		1,126,722
PolyMedica Corp.	33,746		887,857
Possis Medical, Inc.(a)	23,425		462,644
Priority Healthcare Corp.(a)	57,103		1,376,753
Regeneron Pharmaceuticals, Inc.(a)	72,944		1,073,006
ResMed, Inc.(a)	44,797		1,860,867
Respironics, Inc.(a)	46,401		2,092,221
Savient Pharmaceuticals, Inc.(a)	78,485		361,816
SurModics, Inc.(a)(b)	22,999		549,676
Sybron Dental Specialties, Inc.(a)	50,396		1,416,128
Techne Corp.(a)	54,190		2,047,298
Viasys Healthcare, Inc.(a)	39,873		821,384
Vital Signs, Inc.	17,052		557,600
Wilson Greatbatch Technologies, Inc.(a)	27,916		1,180,009

			41,271,276

Education — 0.4%
ITT Educational Services, Inc.(a)(b)	59,702		2,804,203

Electrical Equipment — 0.9%
Anixter International, Inc.(a)(b)	47,774		1,236,391
Baldor Electric Co.(b)	43,262		988,537
C&D Technologies, Inc.	33,603		644,169
Kulicke & Soffa Industries, Inc.(a)(b)	65,994		948,994
MagneTek, Inc.(a)	37,534		247,349
Technitrol, Inc.	53,025		1,099,738
Vicor Corp.(a)	55,143		629,182

			5,794,360

Electronics — 2.7%
Analogic Corp.	17,768		728,488
Artesyn Technologies, Inc.(a)	51,105		435,415
Audiovox Corp.(a)	30,261		388,551
Belden, Inc.	33,506		706,642
Benchmark Electronics, Inc.(a)	53,710		1,869,645
Cable Design Technologies Corp.(a)	55,041		494,819
Checkpoint Systems, Inc.(a)	43,331		819,389
Cohu, Inc.	28,077		537,675
CTS Corp.	47,213		542,949
Dionex Corp.(a)(b)	27,864		1,282,301
EDO Corp.	26,054		642,231
Electro Scientific Industries, Inc.(a)	36,830		876,554
Esterline Technologies, Inc.(a)	27,743		739,906


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Electronics (cont’d.)
Helix Technology Corp.	34,382	$	707,582
Intermagnetics General Corp.(a)	22,025		488,074
InVision Technologies, Inc.(a)	22,332		749,685
Itron, Inc.(a)	27,107		497,684
Keithley Instruments, Inc.	20,404		373,393
Methode Electronics, Inc. (Class “A” Stock)	47,078		575,764
Park Electrochemical Corp.	26,075		690,727
Photronics, Inc.(a)	42,606		848,711
SBS Technologies, Inc.(a)	19,804		291,317
Three-Five Systems, Inc.(a)	28,063		147,050
Ultratech Stepper, Inc.(a)	30,897		907,445
X-Rite, Inc.	27,107		306,851

			16,648,848

Electronic Components — 1.5%
Alliance Semiconductor Corp.(a)	46,339		329,470
Bel Fuse, Inc. (Class “B” Stock)	14,742		481,031
Cubic Corp.	35,245		810,635
Cymer, Inc.(a)(b)	47,563		2,196,935
DSP Group, Inc.(a)	37,817		942,022
FLIR Systems, Inc.(a)	43,396		1,583,954
Microsemi Corp.(a)	38,183		938,538
Planar Systems, Inc.(a)	18,855		458,554
Rogers Corp.(a)	21,365		942,624
Supertex, Inc.(a)	16,819		321,243

			9,005,006

Energy — 0.7%
Advanced Energy Industries, Inc.(a)	42,642		1,110,824
UGI Corp.	56,274		1,907,689
Unisource Energy Corp.(b)	44,370		1,094,164
Veritas DGC, Inc.(a)	44,305		464,316

			4,576,993

Engineering — 0.6%
EMCOR Group, Inc.(a)	19,870		872,293
Engineered Support Systems, Inc.	32,409		1,784,439
URS Corp.(a)	43,582		1,089,986

			3,746,718

Environmental Services — 0.6%
Ionics, Inc.(a)(b)	23,391		745,003
Tetra Tech, Inc.(a)	71,691		1,782,238
Waste Connections, Inc.(a)(b)	37,597		1,420,039

			3,947,280

Exchange Traded Funds — 3.9%
iShares S&P SmallCap 600 Index Fund(b)	180,300		24,160,200

Financial Services — 2.4%
Financial Federal Corp.(a)	24,590		751,224
Hudson United Bancorp	59,101		2,183,782
Irwin Financial Corp.(b)	37,000		1,161,800
Jeffries Group, Inc.	71,970		2,376,449
MAF Bancorp, Inc.	43,560		1,825,164
New Century Financial Corp.(b)	46,449		1,842,632
Piper Jaffray Cos., Inc.(a)	25,400		1,055,878

SEE NOTES TO FINANCIAL STATEMENTS.

B53




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Financial Services (cont’d.)
PRG-Schultz International, Inc.(a)(b)	81,204	$	397,900
South Financial Group, Inc.	77,812		2,167,842
SWS Group, Inc.	22,559		401,550
UICI(a)	61,084		811,196

			14,975,417

Food & Beverage — 1.8%
American Italian Pasta Co. (Class “A” Stock)(a)(b)	23,629		990,055
Corn Products International, Inc.	47,588		1,639,407
Flowers Foods, Inc.	59,319		1,530,430
Hain Celestial Group, Inc.(a)	45,163		1,048,233
International Multifoods Corp.(a)	25,473		458,514
J & J Snack Foods Corp.(a)	11,507		434,504
Lance, Inc.	38,367		576,656
Nash-Finch Co.	15,918		355,608
Performance Food Group Co.(a)(b)	60,445		2,186,296
Ralcorp Holdings, Inc.(a)	38,117		1,195,349
United Natural Foods, Inc.(a)	25,791		926,155

			11,341,207

Furniture — 0.8%
Aaron Rents, Inc.	43,224		870,099
Bassett Furniture Industries, Inc.	15,231		251,312
Ethan Allen Interiors, Inc.	49,193		2,060,203
Interface, Inc.(a)	67,694		374,348
La-Z-Boy, Inc.	70,437		1,477,768

			5,033,730

Healthcare — 2.5%
American Healthways, Inc.(a)(b)	42,170		1,006,598
ArQule, Inc.(a)	36,962		180,374
Cooper Cos., Inc.(b)	41,506		1,956,178
Datascope Corp.	19,542		700,581
Mentor Corp.(b)	60,914		1,465,591
NDCHealth Corp.	46,416		1,189,178
Pharmaceutical Product Development, Inc.(a)	73,875		1,992,409
Renal Care Group, Inc.(a)(b)	64,344		2,650,973
Sierra Health Services, Inc.(a)(b)	36,337		997,450
Smith (A.O.) Corp.	38,518		1,350,056
Sola International, Inc.(a)	40,830		767,604
Theragenics Corp(a)	39,485		215,983
U.S. Oncology, Inc.(a)	111,021		1,194,586

			15,667,561

Hospitals/Healthcare Management — 2.8%
Accredo Health, Inc.(a)	63,162		1,996,551
AMERIGROUP Corp.(a)	32,141		1,370,814
AmSurg Corp.(a)(b)	26,476		1,003,176
Biosite, Inc.(a)(b)	20,507		593,678
Centene Corp.(a)	26,466		741,313
Curative Health Services, Inc.(a)	16,860		232,668
Mid Atlantic Medical Services, Inc.(a)	63,009		4,082,983
Odyssey Healthcare, Inc.(a)(b)	47,879		1,400,939
Orthodontic Centers of America, Inc.(a)(b)	66,065		531,823


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Hospitals/Healthcare Management (cont’d.)
Pediatrix Medical Group, Inc.(a)(b)	31,095	$	1,713,023
Province Healthcare Co.(a)	64,244		1,027,904
RehabCare Group, Inc.(a)	21,271		452,221
Sunrise Assisted Living, Inc.(a)(b)	26,740		1,035,908
United Surgical Partners International, Inc.(a)	36,200		1,211,976

			17,394,977

Housing Related — 0.8%
Champion Enterprises, Inc.(a)	77,537		542,759
Fleetwood Enterprises, Inc.(a)	50,977		523,024
National Presto Industries, Inc.	8,957		323,796
Ryland Group, Inc.(b)	32,699		2,898,439
Skyline Corp.	11,057		385,558

			4,673,576

Human Resources — 0.7%
Administaff, Inc.(a)	35,089		609,847
CDI Corp.(a)	25,781		844,328
Cross Country Healthcare, Inc.(a)	42,106		628,221
Heidrick & Struggles International, Inc.(a)	24,124		525,903
Spherion Corp.(a)	78,736		770,825
Watson Wyatt & Co. Holdings(a)	43,864		1,059,316

			4,438,440

Instrument – Controls — 0.4%
BEI Technologies, Inc.	19,422		388,440
FEI Co.(a)(b)	43,706		983,385
Woodward Governor Co.	14,749		838,186

			2,210,011

Insurance — 2.0%
Delphi Financial Group, Inc.(b)	40,898		1,472,310
Fremont General Corp.	100,141		1,693,384
Hilb, Rogal & Hamilton Co.	47,400		1,520,118
LandAmerica Financial Group, Inc.	24,585		1,284,812
Philadelphia Consolidated Holding Corp.(a)	29,007		1,416,412
Presidential Life Corp.	38,660		508,766
RLI Corp.	33,203		1,243,784
SCPIE Holdings, Inc.	12,971		114,404
Selective Insurance Group, Inc.	35,879		1,161,045
Stewart Information Services Corp.	23,615		957,588
Zenith National Insurance Corp.	24,785		806,752

			12,179,375

Internet — 0.1%
Websense, Inc.(a)	29,511		862,902

Leisure — 2.2%
Argosy Gaming Co.(a)	38,696		1,005,709
Aztar Corp.(a)	45,054		1,013,715
Bally Total Fitness Holding Corp.(a)	44,884		314,188
Huffy Corp.(a)	21,290		111,773
K2, Inc.(a)	43,500		661,635
Marcus Corp.	39,036		640,190
Pinnacle Entertainment, Inc.(a)	34,150		318,278
Polaris Industries, Inc.(b)	28,760		2,547,561
Prime Hospitality Corp.(a)	58,929		601,076

SEE NOTES TO FINANCIAL STATEMENTS.

B54




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Leisure (cont’d.)
Shuffle Master, Inc.(a)	21,889	$	757,797
Sturm Ruger & Co., Inc.	35,486		403,476
The Nautilus Group, Inc.(b)	42,967		603,686
Thor Industries, Inc.	37,801		2,125,172
Winnebago Industries, Inc.	22,392		1,539,450
WMS Industries, Inc.(a)(b)	38,773		1,015,853

			13,659,559

Machinery — 3.0%
Albany International Corp. (Class “A” Stock)(b)	43,973		1,490,685
Applied Industrial Technologies, Inc.	25,359		605,066
Astec Industries, Inc.(a)	25,964		318,578
Cognex Corp.	57,757		1,631,058
Dril-Quip, Inc.(a)	22,818		371,933
Gardner Denver, Inc.(a)	21,230		506,760
IDEX Corp.	43,462		1,807,584
JLG Industries, Inc.(b)	57,282		872,405
Lindsay Manufacturing Co.	15,440		389,860
Manitowoc Co., Inc.	35,042		1,093,310
Milacron, Inc.	45,888		191,353
Paxar Corp.(a)(b)	51,594		691,360
Photon Dynamics, Inc.(a)	21,340		858,722
Regal-Beloit Corp.	33,015		726,330
Robbins & Myers, Inc.	19,034		361,456
Roper Industries, Inc.(b)	47,269		2,328,471
Stewart & Stevenson Services, Inc.	37,698		529,657
Timken Co.	117,468		2,356,408
Toro Co.	32,294		1,498,441

			18,629,437

Media — 1.1%
4Kids Entertainment, Inc.(a)	17,729		461,309
Harman International Industries, Inc.	86,790		6,420,724

			6,882,033

Metals – Ferrous — 1.4%
Century Aluminum Co.(a)	27,800		528,478
Cleveland-Cliffs, Inc.(a)	13,672		696,588
Commercial Metals Co.	37,397		1,136,869
Kaydon Corp.(b)	37,193		961,067
Material Sciences Corp.(a)	18,665		188,703
Maverick Tube Corp.(a)	55,334		1,065,180
Quanex Corp.	21,205		977,551
Reliance Steel & Aluminum Co.	42,282		1,404,185
Steel Dynamics, Inc.(a)(b)	63,450		1,490,440
Steel Technologies, Inc.	12,842		227,175

			8,676,236

Metals – Non Ferrous — 0.3%
Brush Engineered Materials, Inc.(a)	21,829		334,202
Commonwealth Industries, Inc.	21,075		211,593
IMCO Recycling, Inc.(a)	20,231		200,085
Precision Castparts Corp.	1		23
RTI International Metals, Inc.(a)	27,432		462,778
Ryerson Tull, Inc.	32,746		374,942
Wolverine Tube, Inc.(a)	16,200		102,060

			1,685,683


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Mineral Resources — 0.3%
Massey Energy Co.	99,409	$	2,067,707

Miscellaneous Basic Industry — 1.3%
Apogee Enterprises, Inc.	36,228		411,188
Armor Holdings, Inc.(a)	37,150		977,417
Briggs & Stratton Corp.(b)	29,240		1,970,776
Lawson Products, Inc.	12,541		416,110
Libbey, Inc.	17,959		511,472
Meade Instruments Corp.(a)	26,220		90,459
Texas Industries, Inc.	27,843		1,030,191
Tredegar Industries, Inc.	50,284		780,911
Watsco, Inc.	34,380		781,457
Watts Water Technologies (Class “A” Stock)	41,631		924,208

			7,894,189

Miscellaneous – Consumer Growth/Staple — 0.3%
DIMON, Inc.	59,433		401,173
Hughes Supply, Inc.	31,194		1,547,846

			1,949,019

Networking — 0.2%
Aeroflex, Inc.(a)	87,644		1,024,558
C-COR.net Corp.(a)	48,206		536,533

			1,561,091

Office Equipment & Supplies — 0.5%
Global Imaging Systems, Inc.(a)	28,577		907,320
Imagistics International, Inc.(a)	22,160		831,000
New England Business Service, Inc.	17,464		515,188
Standard Register Co.	37,495		631,041

			2,884,549

Oil & Gas — 3.9%
Cabot Oil & Gas Corp. (Class “A” Stock)	42,826		1,256,943
Cascade Natural Gas Corp.	14,739		310,845
Cimarex Energy Co.(a)	54,926		1,465,975
Evergreen Resources, Inc.(a)	56,368		1,832,524
Frontier Oil Corp.	34,492		593,952
Laclede Group, Inc.	25,220		720,031
Lone Star Technologies, Inc.(a)	37,716		602,702
Newfield Exploration Co.(a)	73,887		3,290,927
Northwest Natural Gas Co.	34,127		1,049,405
Nuevo Energy Co.(a)	25,689		620,903
Piedmont Natural Gas Co., Inc.(b)	44,272		1,924,061
Prima Energy Corp.(a)	17,065		600,005
Remington Oil and Gas Corp.(a)	35,415		697,321
Southern Union Co.(a)(b)	96,199		1,770,062
Southwest Gas Corp.	44,839		1,006,636
Spinnaker Exploration Co.(a)	43,869		1,415,653
Swift Energy Co.(a)	36,182		609,667
Tom Brown, Inc.(a)	60,156		1,940,031
Unit Corp.(a)	57,470		1,353,418
Vintage Petroleum, Inc.	84,761		1,019,675

			24,080,736

SEE NOTES TO FINANCIAL STATEMENTS.

B55




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Oil & Gas Services — 2.8%
Atwood Oceanics, Inc.(a)	18,255	$	583,065
Cal Dive International, Inc.(a)	49,747		1,199,400
CARBO Ceramics, Inc.	20,590		1,055,238
Energen Corp.	47,673		1,956,023
Hydril Co.(a)	30,119		720,748
Input/Output, Inc.(a)	67,564		304,714
New Jersey Resources Corp.	36,095		1,390,019
NUI Corp.	21,070		339,648
Oceaneering International, Inc.(a)	32,045		897,260
Offshore Logistics, Inc.	29,664		727,361
Patina Oil & Gas Corp.	45,079		2,208,420
Plains Resources, Inc.(a)	31,047		498,304
SEACOR SMIT, Inc.(a)	24,674		1,037,048
Southwestern Energy Co.(a)	46,950		1,122,105
St. Mary Land & Exploration Co.	37,134		1,058,319
Stone Energy Corp.(a)	34,794		1,477,005
W-H Energy Services, Inc.(a)	35,914		581,807

			17,156,484

Paper & Forest Products — 0.9%
Brady (W.H.) Co. (Class “A” Stock)	30,861		1,257,586
Buckeye Technologies, Inc.(a)	48,749		489,927
Caraustar Industries, Inc.(a)	37,052		511,317
Chesapeake Corp.	20,227		535,611
Pope & Talbot, Inc.	20,624		363,189
Rock-Tenn Co. (Class “A” Stock)	45,949		793,080
Schweitzer-Mauduit Int’l, Inc.	19,513		581,097
Universal Forest Products, Inc.	23,490		755,908

			5,287,715

Pharmaceuticals — 0.5%
Alpharma, Inc. (Class “A” Stock)	68,506		1,376,970
MGI Pharma, Inc.(a)(b)	41,665		1,714,515

			3,091,485

Photography — 0.1%
Concord Camera Corp.(a)(b)	37,831		349,937

Real Estate Investment Trust — 1.8%
Capital Automotive REIT	43,045		1,377,440
Colonial Properties Trust	34,549		1,368,140
Essex Property Trust, Inc.(b)	30,143		1,935,783
Gables Residential Trust	37,636		1,307,475
Glenborough Realty Trust, Inc.	36,597		730,110
Kilroy Realty Corp.	36,984		1,211,226
Lexington Corporate Properties Trust	53,461		1,079,378
Shurgard Storage Centers, Inc. (Class “A” Stock)	60,205		2,266,718

			11,276,270

Restaurants — 2.1%
CEC Entertainment, Inc.(a)(b)	34,075		1,614,814
IHOP Corp.	28,161		1,083,635
Jack in the Box, Inc.(a)	47,496		1,014,514
Landry’s Restaurants, Inc.	36,331		934,433
Lone Star Steakhouse & Saloon, Inc.	27,510		637,682
O’Charley’s, Inc.(a)	27,477		493,212
P.F. Chang’s China Bistro, Inc.(a)(b)	33,619		1,710,535
Papa John’s International, Inc.(a)(b)	23,673		790,205
RARE Hospitality International, Inc.(a)	44,365		1,084,281


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Restaurants (cont’d.)
Ryan’s Family Steak Houses, Inc.(a)	55,743	$	843,949
Sonic Corp.(a)	51,856		1,587,831
The Steak’N Shake Co.(a)	35,969		642,047
Triarc Cos., Inc. (Class “A” Stock)(b)	78,124		842,177

			13,279,315

Retail — 7.1%
AnnTaylor Stores Corp.(a)(b)	59,714		2,328,846
Arctic Cat, Inc.	27,658		683,153
Brown Shoe Co., Inc.	23,771		901,634
Building Materials Corp.	17,579		273,002
Burlington Coat Factory Warehouse Corp.	58,709		1,242,282
Caseys Gen. Stores, Inc.	65,767		1,161,445
Cash America International, Inc.	36,853		780,547
Cato Corp. (Class “A” Stock)	26,790		549,195
Christopher & Banks Corp.	49,724		971,110
Cost Plus, Inc.(a)	28,784		1,180,144
Dress Barn, Inc.(a)	38,664		579,573
Duane Reade, Inc.(a)	31,642		535,383
Electronics Boutique Holdings Corp.(a)(b)	32,756		749,785
Fred’s, Inc.	51,620		1,599,188
Goody’s Family Clothing, Inc.	43,276		405,063
Great Atlantic & Pacific Tea Co., Inc.(a)	50,751		426,308
Group 1 Automotive, Inc.(a)	29,914		1,082,588
Guitar Center, Inc.(a)	31,400		1,023,012
Hancock Fabrics, Inc.	24,786		358,901
Haverty Furniture Cos., Inc.	29,261		581,123
Hot Topic, Inc.(a)(b)	63,119		1,859,486
J. Jill Group, Inc.(a)	25,824		328,223
Jo-Ann Stores, Inc. (Class “A” Stock)(a)	28,497		581,339
K-Swiss, Inc. (Class “A” Stock)	46,480		1,118,309
Linens ‘n Things, Inc.(a)	59,013		1,775,111
Movie Gallery, Inc.	43,070		804,548
Panera Bread Co. (Class “A” Stock)(a)(b)	39,515		1,562,028
Pep Boys-Manny, Moe & Jack(b)	72,002		1,646,686
Quiksilver, Inc.(a)	73,033		1,294,875
Regis Corp.	57,614		2,276,905
Russ Berrie & Co., Inc.	27,209		922,385
School Specialty, Inc.(a)	24,920		847,529
Shopko Stores, Inc.(a)	38,400		585,600
Stein Mart, Inc.(a)	54,968		452,936
Stride Rite Corp.	51,757		588,995
The Childrens Place Retail Stores, Inc.(a)(b)	35,278		942,981
The Gymboree Corp.(a)	39,066		673,107
The Men’s Wearhouse, Inc.(a)	52,049		1,301,745
Too, Inc.(a)	45,260		763,989
Tractor Supply Co.(a)	49,177		1,912,493
Ultimate Electronics, Inc.(a)	19,294		147,213
Urban Outfitters, Inc.(a)	52,356		1,939,790
Wet Seal, Inc.(a)	39,588		391,525
Zale Corp.(a)	34,339		1,826,835

			43,956,915

SEE NOTES TO FINANCIAL STATEMENTS.

B56




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductors — 2.2%
ATMI, Inc.(a)	40,819	$	944,552
Axcelis Technologies, Inc.(a)	130,496		1,333,669
Brooks Automation, Inc.(a)(b)	57,140		1,381,074
DuPont Photomasks, Inc.(a)	23,877		576,391
ESS Technology, Inc.(a)	51,201		870,929
Exar Corp.(a)	53,605		915,573
Kopin Corp.(a)	91,924		616,810
Pericom Semiconductor Corp.(a)	34,103		363,538
Power Integrations, Inc.(a)(b)	39,773		1,330,804
Rudolph Technologies, Inc.(a)	21,704		532,616
Skyworks Solutions, Inc.(a)	196,001		1,705,209
Varian Semiconductor Equipment Associates, Inc.(a)(b)	47,191		2,061,775
Veeco Instruments, Inc.(a)	38,606		1,088,689

			13,721,629

Software — 2.6%
ANSYS, Inc.(a)	20,135		799,360
BARRA, Inc.	25,673		911,135
Captaris, Inc.(a)	42,342		237,962
Catapult Communications Corp.(a)	17,015		246,718
Concerto Software, Inc.(a)	14,689		175,974
Concord Communications, Inc.(a)	23,699		473,269
EPIQ Systems, Inc.(a)	23,390		400,671
Gerber Scientific, Inc.(a)	29,230		232,671
Hyperion Solutions Corp.(a)(b)	52,892		1,594,165
JDA Software Group, Inc.(a)	38,167		630,137
ManTech International Corp. (Class “A” Stock)(a)	42,300		1,055,385
MapInfo Corp.(a)	20,282		204,443
MICROS Systems, Inc.(a)	23,924		1,037,345
MRO Software, Inc.(a)	32,289		434,610
Netegrity, Inc.(a)(b)	45,791		472,105
PC-Tel, Inc.(a)	27,040		286,894
Rainbow Technologies, Inc.(a)	35,290		397,365
Roxio, Inc.(a)(b)	36,765		176,104
SCM Microsystems, Inc.(a)	20,070		154,940
SERENA Software, Inc.(a)(b)	51,709		948,860
SPSS, Inc.(a)	22,888		409,237
Take-Two Interactive Software, Inc.(a)	58,090		1,673,573
THQ, Inc.(a)	50,319		850,894
Verity, Inc.(a)	49,525		826,572
Webex Communications, Inc.(a)(b)	56,355		1,132,736
Zixit Corp.(a)(b)	36,783		319,644

			16,082,769

Supermarkets — 0.3%
Kronos, Inc.(a)	39,962		1,582,895

Technology — 0.1%
Systems & Computer Technology Corp.(a)	44,587		728,997

Telecommunications — 1.1%
Boston Communications Group, Inc.(a)	24,365		226,351
Commonwealth Telephone Enterprises, Inc.(a)	31,671		1,195,580


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Telecommunications (cont’d.)
Digi International, Inc.(a)	27,080	$	259,968
General Communication, Inc.(a)	74,284		646,271
Harmonic, Inc.(a)	92,079		667,573
Intermediate Telephone, Inc.	33,180		828,836
Intrado, Inc.(a)	21,200		465,340
J2 Global Communications, Inc.(a)(b)	30,417		753,429
Network Equipment Technologies, Inc.(a)	30,738		338,118
Symmetricom, Inc.(a)	57,627		419,525
Tollgrade Communications, Inc.(a)	17,835		312,648
ViaSat, Inc.(a)	34,631		662,837

			6,776,476

Textiles — 0.7%
Angelica Corp.	11,657		256,454
Ashworth, Inc.(a)	17,202		138,820
G & K Services, Inc. (Class “A” Stock)	27,377		1,006,105
Haggar Corp.	8,490		165,640
Kellwood Co.	35,271		1,446,111
Oshkosh B’Gosh, Inc. (Class “A” Stock)	15,622		335,248
Oxford Industries, Inc.	21,338		722,931

			4,071,309

Timber — 0.1%
Deltic Timber Corp.	15,829		481,202

Transportation — 0.4%
Kansas City Southern(a)	81,827		1,171,763
Pegasus Systems, Inc.(a)	32,945		344,934
USF Corp.(b)	36,164		1,236,447

			2,753,144

Trucking/Shipping — 2.1%
Arkansas Best Corp.(b)	32,744		1,027,834
Forward Air Corp.(a)	28,300		778,250
Heartland Express, Inc.	66,007		1,596,709
Kirby Corp.(a)	31,980		1,115,462
Knight Transportation, Inc.(a)	49,414		1,267,469
Landstar Systems, Inc.(a)	39,374		1,497,787
Monaco Coach Corp.(a)	38,386		913,587
Oshkosh Truck Corp.	46,160		2,355,545
Yellow Roadway Corp.(a)(b)	65,536		2,370,427

			12,923,070

Utility – Electric — 1.1%
Atmos Energy Corp.(b)	66,407		1,613,690
Avista Corp.	63,680		1,153,882
Central Vermont Public Service Corp.	15,729		369,631
CH Energy Group, Inc.	20,826		976,739
Cleco Corp.	62,315		1,120,424
El Paso Electric Co.(a)	63,466		847,271
Green Mountain Power Corp.	6,581		155,312
UIL Holdings Corp.	19,139		863,169

			7,100,118

SEE NOTES TO FINANCIAL STATEMENTS.

B57




		*SMALL CAPITALIZATION STOCK PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares		Value (Note 2)
Utility & Water — 0.1%
American States Water Co.		20,002	$	500,050

TOTAL LONG-TERM INVESTMENTS (cost $495,542,322)				609,026,118


SHORT-TERM INVESTMENTS — 21.9%	Principal Amount (000)
U.S. Government Agency Obligation — 0.1%
United States Treasury Bill(d)(e) 0.87%, 3/18/04	$	700		698,694


SHORT-TERM INVESTMENTS (Continued)	Shares	Value (Note 2)
Mutual Fund — 21.8%
Dryden Core Investment Fund —Taxable Money Market Series (cost $134,967,303; Note 4)(c)	134,967,302	$	134,967,302

TOTAL SHORT-TERM INVESTMENTS (cost $135,665,996)			135,665,996

TOTAL INVESTMENTS — 120.1% (cost $631,208,318; Note 6)			744,692,114
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(f)			(59,200	)
LIABILITIES IN EXCESS OF OTHER ASSETS — (20.1)%			(124,734,171	)

NET ASSETS — 100%		$	619,898,743

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $119,273,266; cash collateral $125,065,395 was received with which the Portfolio purchased securities.

(c)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Rate quoted represents yield-to-maturity as of purchase date.

(f)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
37	S&P MidCap 400 Index	Mar 04	$	10,512,450	$	10,656,925	$	144,475

SEE NOTES TO FINANCIAL STATEMENTS.

B58




		*SP AGGRESSIVE GROWTH ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	318,241	$	5,289,171
SP Alliance Large Cap Growth Portfolio	849,537		5,292,618
SP Davis Value Portfolio	1,077,314		10,557,677
SP Deutsche International Equity Portfolio	1,198,558		9,192,940
SP Jennison International Growth Portfolio (Class I)	1,553,280		9,148,818
SP Prudential U.S. Emerging Growth Portfolio (Class I)	1,589,353		10,569,199
SP Small/Mid Cap Value Portfolio	818,444		10,541,559

TOTAL INVESTMENTS — 100.0% (cost $52,803,227; Note 6)			60,591,982
LIABILITIES IN EXCESS OF OTHER ASSETS			(3,221	)

NET ASSETS — 100.0%		$	60,588,761

SEE NOTES TO FINANCIAL STATEMENTS.

B59




		*SP ALLIANCE TECHNOLOGY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.1% COMMON STOCKS — 96.4%	Shares	Value (Note 2)
Broadcast & Cable — 3.8%
Comcast Corp. (Class “A” Stock)(a)	7,874	$	258,818
News Corp. Ltd. ADR (Australia)	6,700		202,675
Viacom, Inc. (Class “B” Stock)	6,750		299,565

			761,058

Communications Equipment — 15.8%
Alcatel SA (France)(a)	32,700		421,123
Cisco Systems, Inc.(a)	35,800		869,582
Corning, Inc.(a)	19,100		199,213
Juniper Networks, Inc.(a)	26,400		493,152
Motorola, Inc.	14,100		198,387
Nokia Oyj, ADR (Finland)	24,800		421,600
QUALCOMM, Inc.	10,450		563,569

			3,166,626

Computer Hardware — 9.0%
Agilent Technologies, Inc.(a)	12,000		350,880
Dell, Inc.(a)	22,700		770,892
EMC Corp.(a)	15,868		205,014
Lexmark International, Inc.(a)	2,800		220,192
Network Appliance, Inc.(a)	3,600		73,908
Seagate Technology(a)	9,800		185,220

			1,806,106

Computer Services — 5.3%
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	4,150		226,009
Computer Sciences Corp.(a)	5,875		259,851
First Data Corp.	5,650		232,159
Fiserv, Inc.(a)	8,830		348,873

			1,066,892

Contract Manufacturing — 4.3%
Flextronics International Ltd. (Singapore)(a)	23,100		342,804
Sanmina-SCI Corp.(a)	40,500		510,705

			853,509

Internet Content — 5.5%
eBay, Inc.(a)	10,100		652,359
Yahoo!, Inc.(a)	9,700		438,149

			1,090,508

Semiconductor Components — 23.0%
Agere Systems, Inc. (Class “A” Stock)(a)	58,200		177,510
Altera Corp.(a)	13,490		306,223
Broadcom Corp. (Class “A” Stock)(a)	9,700		330,673
Fairchild Semiconductor International, Inc.(a)	8,600		214,742
Intel Corp.	35,750		1,151,150
Linear Technology Corp.	7,500		315,525
Marvell Technology Group Ltd. (Bermuda)(a)	7,500		284,475


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductor Components (cont’d.)
Maxim Integrated Products, Inc.	6,000	$	298,800
Samsung Electronics Co. Ltd. GDR (South Korea)	2,489		467,932
SanDisk Corp.(a)	3,300		201,762
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan)(a)	24,418		250,040
Texas Instruments, Inc.	6,700		196,846
United Microelectronics Corp. ADR (Taiwan)(a)	37,000		183,150
Vishay Intertechnology, Inc.(a)	9,800		224,420

			4,603,248

Semiconductor Equipment — 6.9%
Applied Materials, Inc.(a)	20,100		451,245
ASML Holding NV (Netherlands)(a)	10,300		206,515
KEMET Corp.(a)	4,200		57,498
KLA-Tencor Corp.(a)	5,150		302,150
Lam Research Corp.(a)	5,600		180,880
Nitto Denko Corp. (Japan)(a)	3,500		186,153

			1,384,441

Software — 20.5%
BMC Software, Inc.(a)	5,700		106,305
Cognos, Inc.(a)	5,700		174,534
Electronic Arts, Inc.(a)	6,950		332,071
Infosys Technologies Ltd. ADR (India)	2,500		239,250
Intuit, Inc.(a)	4,400		232,804
Macrovision Corp.(a)	10,250		231,548
Mercury Interactive Corp.(a)	8,050		391,552
Microsoft Corp.	31,500		867,510
Oracle Corp.(a)	31,100		410,520
SAP AG, ADR (Germany)	9,500		394,820
Symantec Corp.(a)	9,000		311,850
VERITAS Software Corp.(a)	10,900		405,044

			4,097,808

Telecommunications – Wireless — 2.3%
Vodafone Group PLC ADR (United Kingdom)	18,350		459,485

TOTAL COMMON STOCKS (cost $16,469,587)			19,289,681

EQUITY CERTIFICATES(a) — 1.7%	Units
Asustek Deutsche Bank Axess, expiring 4/18/05	42,000		103,488
Asustek Deutsche Bank London, expiring 8/22/05	10,800		23,706
Hon Hai Citigroup, expiring 1/17/07	55,678		219,093

TOTAL EQUITY CERTIFICATES (cost $320,284)			346,287

TOTAL LONG-TERM INVESTMENTS (cost $16,789,871)			19,635,968

SEE NOTES TO FINANCIAL STATEMENTS.

B60




		*SP ALLIANCE TECHNOLOGY PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


SHORT-TERM INVESTMENT — 4.0%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. Repurchase Agreement, 0.50%, 1/2/04(b) (cost $801,812)	$	802	$	801,812

TOTAL INVESTMENTS — 102.1% (cost $17,591,683; Note 6)				20,437,780
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.1)%				(422,806	)

NET ASSETS — 100%			$	20,014,974

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $801,834 due 1/2/04. The value of the collateral including accrued interest was $819,068, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B61




		*SP BALANCED ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	2,385,809	$	39,652,148
SP Alliance Large Cap Growth Portfolio	6,368,466		39,675,545
SP Davis Value Portfolio	8,076,573		79,150,412
SP Deutsche International Equity Portfolio	2,995,305		22,973,993
SP Jennison International Growth Portfolio (Class I)	3,880,757		22,857,656
SP PIMCO High Yield Portfolio	4,243,373		44,682,721
SP PIMCO Total Return Portfolio	11,535,820		133,123,365
SP Prudential U.S. Emerging Growth Portfolio (Class I)	5,106,750		33,959,886
SP Small/Mid Cap Value Portfolio	2,629,869		33,872,714

TOTAL INVESTMENTS — 100.0% (cost $408,622,120; Note 6)			449,948,440

OTHER ASSETS IN EXCESS OF LIABILITIES			7,473

NET ASSETS — 100.0%		$	449,955,913

SEE NOTES TO FINANCIAL STATEMENTS.

B62




		*SP CONSERVATIVE ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	1,285,970	$	21,372,823
SP Alliance Large Cap Growth Portfolio	3,432,704		21,385,745
SP Davis Value Portfolio	4,353,544		42,664,734
SP PIMCO High Yield Portfolio	2,668,539		28,099,720
SP PIMCO Total Return Portfolio	13,299,869		153,480,484
SP Prudential U.S. Emerging Growth Portfolio (Class I)	1,070,432		7,118,375
SP Small/Mid Cap Value Portfolio	551,260		7,100,235

TOTAL INVESTMENTS — 100.0% (cost $261,465,311; Note 6)			281,222,116
LIABILITIES IN EXCESS OF OTHER ASSETS			(12,511	)

NET ASSETS — 100.0%		$	281,209,605

SEE NOTES TO FINANCIAL STATEMENTS.

B63




		*SP GROWTH ASSET ALLOCATION PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.0% MUTUAL FUNDS	Shares	Value (Note 2)
Jennison Portfolio (Class I)	1,723,859	$	28,650,541
SP Alliance Large Cap Growth Portfolio	4,601,533		28,667,548
SP Davis Value Portfolio	5,835,597		57,188,846
SP Deutsche International Equity Portfolio	4,328,246		33,197,645
SP Jennison International Growth Portfolio (Class I)	5,607,953		33,030,845
SP PIMCO High Yield Portfolio	2,299,611		24,214,904
SP PIMCO Total Return Portfolio	3,473,304		40,081,930
SP Prudential U.S. Emerging Growth Portfolio (Class I)	6,149,852		40,896,513
SP Small/Mid Cap Value Portfolio	3,166,998		40,790,936

TOTAL INVESTMENTS — 100.0% (cost $288,586,598; Note 6)			326,719,708
LIABILITIES IN EXCESS OF OTHER ASSETS			(13,957	)

NET ASSETS — 100.0%		$	326,705,751

SEE NOTES TO FINANCIAL STATEMENTS.

B64




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 92.3%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.9%
Getty Images, Inc.(a)	5,900	$	295,767

Airlines — 0.7%
AirTran Holdings, Inc.(a)	20,300		241,570

Apparel — 2.8%
Aeropostale, Inc.(a)	12,800		350,976
Hot Topic, Inc.(a)	4,950		145,827
The Finish Line, Inc. (Class “A” Stock)(a)	6,300		188,811
The Men’s Wearhouse, Inc.(a)	11,800		295,118

			980,732

Banking — 6.3%
Dime Community Bancshares	5,400		166,104
Greater Bay Bancorp	9,200		262,016
Independence Community Bank Corp.	5,200		187,044
Investors Financial Services Corp.	9,100		349,531
PrivateBankcorp, Inc.	5,700		259,464
Silicon Valley Bancshares(a)	7,000		252,490
South Financial Group, Inc.	6,900		192,234
Southwest Bancorp of Texas, Inc.	7,800		303,030
Wintrust Financial Corp.	5,100		230,010

			2,201,923

Building & Construction — 0.5%
The Ryland Group, Inc.	2,100		186,144

Commercial Services — 0.4%
Providence Service Corp.(a)	8,600		139,148

Computer Software & Services — 12.3%
Agile Software Corp.(a)	18,300		181,170
Altiris, Inc.(a)	8,800		321,024
Anteon International Corp.(a)	9,400		338,870
Cognizant Technology Solutions Corp. (Class “A” Stock)(a)	4,400		200,816
Dendrite International, Inc.(a)	13,700		214,679
Dot Hill Systems Corp.(a)	12,700		192,405
F5 Networks, Inc.(a)	8,800		220,880
FileNET Corp.(a)	9,600		259,968
McDATA Corp. (Class “A” Stock)(a)	21,900		208,707
MicroStrategy, Inc. (Class “A” Stock)(a)	5,000		262,400
MSC. Software Corp.(a)	24,100		227,745
NetScreen Technologies, Inc.(a)	9,100		225,225
Openwave Systems, Inc.(a)	9,400		103,400
RSA Security, Inc.(a)	17,300		245,660
Secure Computing Corp.(a)	20,900		374,319
SRA International, Inc. (Class “A” Stock)(a)	4,300		185,330
SupportSoft, Inc.(a)	22,800		299,820
webMethods, Inc.(a)	28,400		259,860

			4,322,278

Consulting — 2.3%
Corporate Executive Board Co.(a)	5,900		275,353
LECG Corp.(a)	13,500		309,015
MAXIMUS, Inc.(a)	5,600		219,128

			803,496


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Diversified Manufacturing Operations — 1.1%
IDEX Corp.	6,100	$	253,699
Kennametal, Inc.	3,700		147,075

			400,774

Education — 2.1%
Corinthian Colleges, Inc.(a)	6,100		338,916
ITT Educational Services, Inc.(a)	2,810		131,986
Sylvan Learning Systems, Inc.(a)	9,400		270,626

			741,528

Electronics — 2.8%
Aeroflex, Inc.(a)	29,200		341,348
Digital Theater Systems, Inc.(a)	6,000		148,140
OmniVision Technologies, Inc.(a)	2,200		121,550
Plexus Corp.(a)	10,400		178,568
Trimble Navigation, Ltd.(a)	700		26,068
Varian Semiconductor Equipment Associates, Inc.(a)	3,600		157,284

			972,958

Electronic Components — 7.0%
Artisan Components, Inc.(a)	7,800		159,900
Benchmark Electronics, Inc.(a)	5,500		191,455
Cymer, Inc.(a)	6,600		304,854
GrafTech International, Ltd.(a)	8,700		117,450
Integrated Circuit Systems, Inc.(a)	5,000		142,450
Integrated Silicon Solution, Inc.(a)	12,400		194,308
Lattice Semiconductor Corp.(a)	27,000		261,360
Microsemi Corp.(a)	10,700		263,006
MKS Instruments, Inc.(a)	10,600		307,400
Semtech Corp.(a)	12,000		272,760
Zoran Corp.(a)	13,900		241,721

			2,456,664

Entertainment — 0.9%
Marvel Enterprises, Inc.(a)	10,900		317,299

Financial Services — 3.0%
Affiliated Managers Group, Inc.(a)	2,100		146,139
Eaton Vance Corp.	5,900		216,176
Knight Trading Group, Inc.(a)	21,300		311,832
National Financial Partners Corp.	7,100		195,605
Raymond James Financial, Inc.	4,400		165,880

			1,035,632

Gaming — 4.1%
Alliance Gaming Corp.(a)	14,100		347,565
Mandalay Resort Group	3,800		169,936
Scientific Games Corp. (Class “A” Stock)(a)	16,000		272,160
Station Casinos, Inc.	10,900		333,867
WMS Industries, Inc.(a)	11,600		303,920

			1,427,448

Health Services — 4.9%
Accredo Health, Inc.(a)	10,400		328,744
DaVita, Inc.(a)	4,200		163,800
Neurocrine Biosciences, Inc.(a)	3,400		185,436
Select Medical Corp.	19,300		314,204
SFBC International, Inc.(a)	8,600		228,416

SEE NOTES TO FINANCIAL STATEMENTS.

B65




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Health Services (cont’d.)
Sierra Health Services, Inc.(a)	10,300	$	282,735
United Surgical Partners International, Inc.(a)	6,800		227,664

			1,730,999

Hospitals — 0.7%
Community Health Systems, Inc.(a)	9,600		255,168

Human Resources — 2.9%
Heidrick & Struggles International, Inc.(a)	16,100		350,980
Labor Ready, Inc.(a)	27,100		355,010
Resources Connection, Inc.(a)	10,790		294,675

			1,000,665

Index Fund — 0.9%
iShares Russell 2000 Growth Fund	5,000		296,300

Insurance — 0.5%
United National Group, Ltd. (Class “A” Stock)(a)	10,000		176,700

Internet Services — 2.0%
Ask Jeeves, Inc.(a)	15,000		271,800
EarthLink, Inc.(a)	23,900		239,000
Netflix, Inc.(a)	3,600		196,884

			707,684

Media — 0.6%
Radio One, Inc. (Class “D” Stock)(a)	10,600		204,580

Medical Products — 12.4%
Abgenix, Inc.(a)	13,000		161,980
Advanced Neuromodulation Systems, Inc.(a)	6,350		291,973
ALARIS Medical Systems, Inc.(a)	7,100		107,991
ArthroCare Corp.(a)	3,853		94,398
Celgene Corp.(a)	4,700		211,594
Connetics Corp.(a)	14,500		263,320
Cyberonics, Inc.(a)	4,900		156,849
Cypress Bioscience, Inc.(a)	9,800		148,470
Eon Labs, Inc.(a)	2,400		122,280
Gen-Probe, Inc.(a)	8,600		313,642
IDEXX Laboratories, Inc.(a)	3,500		161,980
ILEX Oncology, Inc.(a)	12,200		259,250
INAMED Corp.(a)	900		43,254
Ligand Pharmaceuticals, Inc. (Class “B” Stock)(a)	13,300		195,377
Martek Biosciences Corp.(a)	4,100		266,377
MGI Pharma, Inc.(a)	5,800		238,670
NPS Pharmaceuticals, Inc.(a)	6,900		212,106
OSI Pharmaceuticals, Inc.(a)	5,500		177,155
Pharmaceutical Resourses, Inc.(a)	1,900		123,785
POZEN, Inc.(a)	3,200		32,640
Regeneration Technologies, Inc.(a)	14,600		160,016
Serologicals Corp.(a)	6,800		126,480
Therasense, Inc.(a)	7,600		154,280
Valeant Pharmaceuticals International	12,300		309,345

			4,333,212


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Metals & Mining — 1.8%
Allegheny Technologies, Inc.	16,400	$	216,808
Arch Coal, Inc.	8,100		252,477
Joy Global, Inc.	6,200		162,130

			631,415

Oil & Gas Equipment & Services — 1.8%
Airgas, Inc.	12,200		262,056
Maverick Tube Corp.(a)	9,400		180,950
National-Oilwell, Inc.(a)	8,800		196,768

			639,774

Oil & Gas Exploration & Production — 1.3%
Patterson-UTI Energy, Inc.(a)	5,800		190,936
Precision Drilling Corp. (Canada)(a)	3,400		148,512
Spinnaker Exploration Co.(a)	3,800		122,626

			462,074

Restaurants — 1.4%
P. F. Chang’s China Bistro, Inc.(a)	4,700		239,136
Panera Bread Co. (Class “A” Stock)(a)	6,600		260,898

			500,034

Retail — 4.0%
Advance Auto Parts, Inc.(a)	3,900		317,460
Guitar Center, Inc.(a)	8,500		276,930
Linens ‘n Things, Inc.(a)	8,700		261,696
PETCO Animal Supplies, Inc.(a)	8,600		261,870
Tuesday Morning Corp.(a)	9,800		296,450

			1,414,406

Semiconductor Equipment — 1.6%
Asyst Technologies, Inc.(a)	10,400		180,440
Ultratech, Inc.(a)	7,400		217,338
Vitesse Semiconductor Corp.(a)	26,400		154,968

			552,746

Telecommunication Equipment — 3.7%
Arris Group, Inc.(a)	38,400		278,016
Inet Technologies, Inc.(a)	14,700		176,400
Powerwave Technologies, Inc.(a)	32,800		250,920
REMEC, Inc.(a)	27,000		227,070
Sonus Networks, Inc.(a)	18,400		139,104
Tekelec(a)	14,250		221,587

			1,293,097

Telecommunication Services — 1.8%
Nextel Partners, Inc. (Class “A” Stock)(a)	23,400		314,730
Western Wireless Corp. (Class “A” Stock)(a)	16,300		299,268

			613,998

Trucking/Shipping — 2.3%
Central Freight Lines, Inc.(a)	3,600		63,900
Oshkosh Truck Corp.	5,000		255,150
Overnite Corp.(a)	10,400		236,600
Wabash National Corp.(a)	8,400		246,120

			801,770

SEE NOTES TO FINANCIAL STATEMENTS.

B66




		*SP INVESCO SMALL COMPANY GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Waste Management — 0.5%
Stericycle, Inc.(a)	4,000	$	186,801

TOTAL LONG-TERM INVESTMENTS (cost $28,116,293)			32,324,784


SHORT-TERM INVESTMENT — 16.8%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co., 0.50%, 1/2/04(b) (cost $5,892,599)	$	5,893	$	5,892,599

TOTAL INVESTMENTS — 109.1% (cost $34,008,892; Note 6)				38,217,383
LIABILITIES IN EXCESS OF OTHER ASSETS — (9.1)%				(3,198,267	)

NET ASSETS — 100%			$	35,019,116

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $5,892,763 due 1/2/04. The value of the collateral including accrued interest was $6,011,322. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B67




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 82.8%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Australia — 1.1%
BHP Billiton, Ltd.	264,300	$	2,427,478

Austria — 1.4%
Erste Bank der Oesterreichischen Sparkassen AG	25,308		3,127,424

Brazil — 2.8%
Petroleo Brasileiro SA, ADR(b)	100,600		2,941,544
Unibanco-Uniaode Bancos Brasileiros SA	126,300		3,151,185

			6,092,729

Finland — 1.8%
Nokia Oyj (Class “A” Stock)	224,339		3,879,520

France — 3.6%
Sanofi-Synthelabo SA	37,100		2,793,727
Societe Television Francaise 1	40,600		1,417,516
Total SA	20,023		3,722,738

			7,933,981

Germany — 3.2%
Muenchener Rueckversicherungs-Gesellschaft AG	24,742		2,999,745
SAP AG	8,440		1,417,488
Siemens AG	32,200		2,579,084

			6,996,317

Hong Kong — 2.9%
Esprit Holdings, Ltd.	1,128,188		3,749,122
Techtronic Industries Co., Ltd.	948,000		2,625,278

			6,374,400

Ireland — 1.8%
Anglo Irish Bank Corp. PLC	252,100		3,978,011

Israel — 0.3%
Teva Pharmaceutical Industries, Ltd., ADR(b)	12,300		697,533

Italy — 6.6%
Banca Nazionale Lavoro SpA(a)	1,415,800		3,384,129
Banco Popolare di Verona e Novara Scrl	212,054		3,589,507
Eni SpA	214,900		4,055,121
Telecom Italia SpA	1,135,176		3,364,859

			14,393,616

Japan — 22.5%
Aoyama Trading Co., Ltd.	176,300		3,487,506
Canon, Inc.	42,000		1,955,585
Copal Co.(b)	102,000		1,647,495
Diamond City Co., Ltd.(b)	36,700		871,527
Mitsubishi Corp.	470,000		4,981,991
Mitsubishi Tokyo Financial Group, Inc.	312		2,433,815
Mitsui Mining & Smelting Co., Ltd.	686,000		2,848,465
Nikko Exchange Traded Index Fund TOPIX	321,000		3,142,008
Nitto Denko Corp.	92,900		4,941,028
Seria Co., Ltd.	104		431,837
Shionogi & Co., Ltd.	200,000		3,724,923
Sumitomo Mitsui Financial Group, Inc.	459		2,445,544


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Sumitomo Realty & Development Co., Ltd.	434,000	$	3,822,861
Taisei Corp.	925,000		3,383,409
Nomura Exchange Traded Index Fund TOPIX	320,900		3,158,995
Yahoo! Japan Corp.(a)	184		2,472,334
Yamaha Corp.(b)	179,200		3,519,791


			49,269,114

Mexico — 0.5%
Grupo Financiero BBVA Bancomer SA de CV (Class “B” Stock)(a)(b)	1,302,000		1,112,301

Netherlands — 4.5%
ASM International NV(a)(b)	171,300		3,467,112
IHC Caland NV	38,800		2,104,437
ING Groep NV	183,700		4,284,320

			9,855,869

South Korea — 1.4%
Samsung Electronics Co., Ltd.	8,000		3,028,116

Spain — 2.4%
Antena 3 Television, SA(a)	370		16,307
Banco Popular Espanol SA(b)	53,719		3,204,977
Telefonica SA	136,906		2,010,070

			5,231,354

Switzerland — 6.7%
Nobel Biocare Holding AG	43,700		4,425,652
Roche Holding AG	53,000		5,346,068
UBS AG	71,500		4,896,746

			14,668,466

United Kingdom — 19.3%
AstraZeneca PLC	81,700		3,919,644
Barclays PLC	499,700		4,457,039
COLT Telecom Group PLC(a)	987,100		1,674,288
Exel PLC	342,500		4,527,942
HSBC Holdings PLC	214,100		3,365,123
Man Group PLC	97,660		2,554,210
Reckitt Benckiser PLC	270,516		6,121,104
Smith & Nephew PLC	206,600		1,735,499
Tesco PLC	1,279,113		5,901,974
Vodafone Group PLC	3,306,097		8,197,003

			42,453,826

TOTAL LONG-TERM INVESTMENTS (cost $145,467,185)			181,520,055

SHORT-TERM INVESTMENT — 21.2%
MUTUAL FUND
Dryden Core Investment Fund — Taxable Money Market Series (cost $46,587,640; Note 4)(c)	46,587,640		46,587,640

TOTAL INVESTMENTS — 104.0% (cost $192,054,825)			228,107,695
LIABILITIES IN EXCESS OF OTHER ASSETS — (4.0)%			(8,839,703	)

TOTAL NET ASSETS — 100.0%		$	219,267,992

SEE NOTES TO FINANCIAL STATEMENTS.

B68




		*SP JENNISON INTERNATIONAL GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

The industry classification of portfolio holdings and other liabilities in excess of assets shown as a percentage of net assets as of December 31, 2003 was as follows:


Mutual Fund	21.2	%
Commercial Banks	15.6	%
Pharmaceuticals	7.5	%
Oil & Gas	4.9	%
Wireless Telecommunication Services	3.7	%
Capital Markets	3.4	%
Specialty Retail	3.3	%
Diversified Telecommunications	3.2	%
Semiconductors & Semiconductor Equipment	3.0	%
Exchange Traded Funds	2.9	%
Health Care Equipment & Supplies	2.8	%
Household Products	2.8	%
Food & Staples Retailing	2.7	%
Metals & Mining	2.4	%
Leisure Equipment & Products	2.4	%
Trading Companies & Distributions	2.3	%
Chemicals	2.2	%
Real Estate	2.1	%
Air Freight & Couriers	2.1	%
Diversified Financial Services	1.9	%
Communications Equipment	1.8	%
Construction & Engineering	1.5	%
Insurance	1.4	%
Household Durables	1.2	%
Industrial Conglomerates	1.2	%
Internet Software & Services	1.1	%
Energy Equipment & Services	1.0	%
Office Electronics	0.9	%
Media	0.7	%
Software	0.6	%
Multiline Retail	0.2	%

	104.0	%
Other liabilities in excess of assets	(4.0	)%

	100.0	%

The following abbreviation is used in the portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $14,109,729; cash collateral of $14,887,349 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B69




		*SP LARGE CAP VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 99.4%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.2%
Lamar Advertising Co.(a)	3,700	$	138,084

Aerospace/Defense — 2.1%
Goodrich Corp.	4,900		145,481
Lockheed Martin Corp.	9,300		478,020
Northrop Grumman Corp.	5,800		554,480
Raytheon Co.	4,700		141,188
United Technologies Corp.	2,200		208,494

			1,527,663

Airlines — 0.3%
JetBlue Airways Corp.(a)	2,850		75,582
Southwest Airlines Co.	6,600		106,524

			182,106

Appliances & Home Furnishings — 0.6%
American Standard Cos., Inc.(a)	4,000		402,800

Automobiles & Trucks — 1.3%
American Axle & Manufacturing Holdings, Inc.(a)	7,300		295,066
International Speedway Corp. (Class “A” Stock)	2,200		98,252
Keystone Automotive Industries, Inc.(a)	4,100		103,976
Lear Corp.	5,100		312,783
Navistar International Corp.(a)	3,500		167,615

			977,692

Banks and Savings & Loans — 12.4%
Bank of America Corp.	22,400		1,801,632
Bank of New York Co., Inc.	19,100		632,592
Bank One Corp.	21,600		984,744
Banknorth Group, Inc.	7,000		227,710
City National Corp.	3,500		217,420
Fifth Third Bancorp	5,000		295,500
FleetBoston Financial Corp.	10,718		467,841
Golden West Financial Corp.	4,100		423,079
M&T Bank Corp.	2,300		226,090
New York Community Bancorp, Inc.	6,100		232,105
Popular, Inc.	4,900		220,206
Sovereign Bancorp, Inc.	19,600		465,500
Synovus Financial Corp.	4,000		115,680
U.S. Bancorp	12,800		381,184
UnionBanCal Corp.	1,800		103,572
Wachovia Corp.	12,000		559,080
Wells Fargo & Co.	25,800		1,519,362
Zions Bancorporation	2,200		134,926

			9,008,223

Chemicals — 2.6%
Cytec Industries, Inc.(a)	3,600		138,204
Dow Chemical Co. (The)	22,000		914,540
E.I. du Pont de Nemours & Co.	2,800		128,492
Georgia Gulf Corp.	2,800		80,864
Millennium Chemicals, Inc.	16,000		202,880
Praxair, Inc.	12,200		466,040

			1,931,020

Commercial Services — 0.8%
Affiliated Computer Services, Inc. (Class “A” Stock)(a)	2,400		130,704


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Commercial Services (cont’d.)
ChoicePoint, Inc.(a)	4,600	$	175,214
First Data Corp.	3,500		143,815
Paychex, Inc.	4,500		167,400

			617,133

Construction & Housing — 0.9%
Martin Marietta Materials, Inc.	2,900		136,213
Pulte Homes, Inc.	3,200		299,584
SCP Pool Corp.(a)	6,600		215,688

			651,485

Containers — 0.5%
Pactiv Corp.(a)	16,500		394,350

Diversified Consumer Products — 2.7%
Alberto-Culver Co.	2,800		176,624
Colgate-Palmolive Co.	2,900		145,145
Fortune Brands, Inc.	4,400		314,556
Gillette Co.	12,100		444,433
Procter & Gamble Co.	9,000		898,920

			1,979,678

Diversified Operations — 2.3%
3M Co.	5,300		450,659
Eaton Corp.	2,100		226,758
Honeywell International, Inc.	12,400		414,532
ITT Industries, Inc.	2,400		178,104
Pentair, Inc.	9,000		411,300

			1,681,353

Drugs & Medical Supplies — 3.6%
Abbott Laboratories	4,400		205,040
Angiotech Pharmaceuticals, Inc.(a)	4,900		225,400
AstraZeneca PLC, ADR (United Kingdom)	2,200		106,436
Becton, Dickinson & Co.	6,000		246,840
Invitrogen Corp.(a)	2,500		175,000
Merck & Co., Inc.	20,400		942,480
Novartis AG ADR (Switzerland)	2,200		100,958
Schering-Plough Corp.	25,700		446,923
Wyeth	3,800		161,310

			2,610,387

Electronics — 1.5%
Avnet, Inc.(a)	15,000		324,900
Emerson Electric Co.	2,100		135,975
Hughes Electronics Corp.(a)	16,135		267,035
National Semiconductor Corp.(a)	3,100		122,171
Texas Instruments, Inc.	8,100		237,978

			1,088,059

Financial Services — 12.2%
Bear Stearns & Cos., Inc. (The)	2,800		223,860
CIT Group, Inc.	5,700		204,915
Citigroup, Inc.	73,074		3,547,012
Countrywide Financial Corp.	4,133		313,513
Federated Investors, Inc. (Class “B” Stock)	4,700		137,992
Goldman Sachs Group, Inc	1,700		167,841
J.P. Morgan Chase & Co.	19,500		716,235
Lehman Brothers Holdings, Inc.	6,100		471,042

SEE NOTES TO FINANCIAL STATEMENTS.

B70




		*SP LARGE CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Financial Services (cont’d.)
MBIA, Inc.	8,000	$	473,840
MBNA Corp.	5,950		147,858
Merrill Lynch & Co., Inc.	19,500		1,143,675
Morgan Stanley	19,900		1,151,613
National Commerce Financial Corp.	6,800		185,504

			8,884,900

Food & Beverage — 2.3%
Dean Foods Co.(a)	5,300		174,211
Hershey Foods Corp.	400		30,796
J.M. Smucker Co. (The)	3,600		163,044
Kellogg Co.	3,300		125,664
McCormick & Co., Inc.	5,600		168,560
McDonald’s Corp.	29,100		722,553
Outback Steakhouse, Inc.	2,200		97,262
Sysco Corp.	4,300		160,089

			1,642,179

Healthcare Service — 1.5%
Aetna, Inc.	3,200		216,256
Coventry Health Care, Inc.(a)	3,000		193,470
Humana, Inc.(a)	12,300		281,055
UnitedHealth Group, Inc.	6,900		401,442

			1,092,223

Index Fund — 0.6%
iShares Russell 1000 Value Index Fund	7,200		420,264

Industrial Technology — 0.6%
Kennametal, Inc.	2,000		79,500
Parker-Hannifin Corp.	5,500		327,250

			406,750

Insurance — 6.1%
AFLAC, Inc.	6,700		242,406
Allstate Corp.	18,500		795,870
AMBAC Financial Group, Inc.	3,950		274,090
American International Group, Inc.	19,000		1,259,320
Fidelity National Financial, Inc.	4,600		178,388
Hartford Financial Services Group, Inc.	7,900		466,337
MetLife, Inc.	21,700		730,639
Nationwide Financial Services, Inc. (Class “A” Stock)	4,300		142,158
Old Republic International Corp.	12,750		323,340
Travelers Property Casualty Corp. (Class “B” Stock)	3,363		57,070

			4,469,618

Leisure — 0.2%
Mandalay Resort Group	3,300		147,576

Machinery — 0.9%
AGCO Corp.(a)	5,200		104,728
Caterpillar, Inc.	2,800		232,456
Cummins, Inc.	3,300		161,502
Terex Corp.(a)	5,100		145,248

			643,934

Media — 7.2%
Cablevision Systems New York Group (Class “A” Stock)(a)	10,100		236,239


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (cont’d.)
Clear Channel Communications, Inc.	12,600	$	590,058
Comcast Corp. (Class “A” Stock)(a)	5,037		165,566
E.W. Scripps Co. (The) (Class “A” Stock)	1,600		150,624
EchoStar Communications Corp. (Class “A” Stock)(a)	6,300		214,200
Fox Entertainment Group, Inc. (Class “A” Stock)(a)	9,600		279,840
Liberty Media Corp. (Class “A” Stock)(a)	15,300		181,917
News Corp. Ltd., ADR (Australia)	1,805		54,591
Time Warner, Inc.(a)	69,200		1,244,908
Tribune Co.	5,600		288,960
Univision Communications, Inc. (Class “A” Stock)(a)	4,300		170,667
Viacom, Inc. (Class “B” Stock)	18,400		816,592
Walt Disney Co. (The)	29,500		688,235
Washington Post Co. (The) (Class “B” Stock)	200		158,280

			5,240,677

Metal & Minerals — 3.0%
Alcan, Inc. (Canada)	10,000		469,500
Alcoa, Inc.	9,900		376,200
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	5,500		231,715
Nucor Corp.	4,300		240,800
Peabody Energy Corp.	4,200		175,182
Phelps Dodge Corp.(a)	7,100		540,239
Precision Castparts Corp.	3,900		177,099

			2,210,735

Oil & Gas — 11.2%
Apache Corp.	3,600		291,960
Burlington Resources, Inc.	4,000		221,520
Chesapeake Energy Corp.	13,800		187,404
ChevronTexaco Corp.	16,664		1,439,603
ConocoPhillips	11,699		767,103
Devon Energy Corp.	3,900		223,314
Equitable Resources, Inc.	4,600		197,432
Exxon Mobil Corp.	94,300		3,866,300
Occidental Petroleum Corp.	11,300		477,312
Pioneer Natural Resources Co.(a)	4,900		156,457
Pride International, Inc.(a)	7,300		136,072
Schlumberger, Ltd.	2,600		142,272
Smith International, Inc.(a)	600		24,912

			8,131,661

Real Estate Investment Trust — 3.0%
Apartment Investment & Management Co. (Class “A” Stock)	4,300		148,350
CBL & Associates Properties, Inc.	2,500		141,250
CenterPoint Properties Trust	3,500		262,150
Developers Diversified Realty Corp.	5,700		191,349
Equity Residential	6,100		180,011
ProLogis	6,100		195,749
Public Storage, Inc.	7,400		321,086
Reckson Associates Realty Corp.	8,400		204,120
Simon Property Group, Inc.	7,300		338,282

SEE NOTES TO FINANCIAL STATEMENTS.

B71




		*SP LARGE CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Real Estate Investment Trust (cont’d.)
Vornado Realty Trust	3,400	$	186,150

			2,168,497

Retail — 2.3%
Big Lots, Inc.(a)	5,800		82,418
CVS Corp.	17,400		628,488
Foot Locker, Inc.	7,200		168,840
Liz Claiborne, Inc.	4,600		163,116
Nordstrom, Inc.	4,100		140,630
Office Depot, Inc.(a)	10,500		175,455
Safeway, Inc.(a)	10,100		221,291
Saks, Inc.(a)	8,200		123,328

			1,703,566

Technology — 3.4%
Ceridian Corp.(a)	6,400		134,016
Computer Sciences Corp.(a)	4,600		203,458
Dell, Inc.(a)	5,300		179,988
DST Systems, Inc.(a)	3,400		141,984
Hewlett-Packard Co.	20,000		459,400
International Business Machines Corp. (IBM)	8,900		824,852
Maxtor Corp.(a)	10,700		118,770
Storage Technology Corp.(a)	5,000		128,750
Sun Microsystems, Inc.(a)	60,500		271,645

			2,462,863

Telecommunications — 6.9%
ALLTEL Corp.	5,200		242,216
Avaya, Inc.(a)	12,600		163,044
BellSouth Corp.	21,500		608,450
CenturyTel, Inc.	5,900		192,458
CIENA Corp.(a)	17,000		112,880
Motorola, Inc.	9,700		136,479
Nextel Communications, Inc. (Class “A” Stock)(a)	5,600		157,136
Qwest Communications International, Inc.(a)	43,300		187,056
SBC Communications, Inc.	55,900		1,457,313
Scientific — Atlanta, Inc.	5,300		144,690
Verizon Communications, Inc.	46,900		1,645,252

			5,046,974

Tobacco — 0.4%
Altria Group, Inc.	6,000		326,520

Transportation — 1.0%
CSX Corp.	700		25,158


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Transportation (cont’d.)
Norfolk Southern Corp.		11,300	$	267,245
Union Pacific Corp.		6,300		437,724

				730,127

Utility – Electric — 4.2%
Allegheny Energy, Inc.(a)		12,800		163,328
Ameren Corp.		5,200		239,200
Dominion Resources, Inc.		6,900		440,427
Exelon Corp.		2,400		159,264
FirstEnergy Corp.		9,200		323,840
FPL Group, Inc.		4,600		300,932
KeySpan Corp.		4,400		161,920
PG&E Corp.(a)		10,600		294,362
PPL Corp.		6,600		288,750
SCANA Corp.		4,100		140,425
TXU Corp.		10,900		258,548
Wisconsin Energy Corp.		3,600		120,420
Xcel Energy, Inc.		11,000		186,780

				3,078,196

Waste Management — 0.6%
Republic Services, Inc.		8,400		215,292
Waste Management, Inc.		8,600		254,560

				469,852

TOTAL LONG-TERM INVESTMENTS (cost $63,946,975)				72,467,145

SHORT-TERM INVESTMENT — 1.0%

	Principal Amount (000)
Repurchase Agreement
State Street Bank & Trust Co. 0.50%, 1/2/04(b) (cost $740,067)	$	740		740,067

TOTAL INVESTMENTS — 100.4% (cost $64,687,042; Note 6)				73,207,212
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.4)%				(324,532	)

NET ASSETS — 100%			$	72,882,680

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $740,088 due 1/2/04. The value of the collateral including accrued interest was $757,094. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B72




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 96.0%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.7%
Getty Images, Inc.(a)	720	$	36,094
Lamar Advertising Co.(a)	2,700		100,764

			136,858

Aerospace/Defense — 0.8%
Lockheed Martin Corp.	3,310		170,134

Airlines — 0.1%
Southwest Airlines Co.	1,300		20,982

Banks and Savings & Loans — 2.3%
Bank of New York Co., Inc. (The)	2,290		75,845
Mellon Financial Corp.	9,330		299,586
Northern Trust Corp.	1,890		87,734

			463,165

Chemicals — 0.9%
Air Products & Chemicals, Inc.	1,940		102,490
Lyondell Chemical Co.	4,690		79,496

			181,986

Computers — 1.6%
Dell, Inc.(a)	4,260		144,670
International Business Machines Corp. (IBM)	2,000		185,360

			330,030

Computer Services — 5.7%
Avid Technology, Inc.(a)	590		28,320
BEA Systems, Inc.(a)	3,240		39,852
BISYS Group, Inc. (The)(a)	3,440		51,187
DST Systems, Inc.(a)	1,260		52,618
Manhattan Associates, Inc.(a)	490		13,544
Mercury Interactive Corp.(a)	2,050		99,712
Microsoft Corp.	22,556		621,192
Oracle Corp.(a)	7,269		95,951
SunGard Data Systems, Inc.(a)	720		19,951
VERITAS Software Corp.(a)	3,796		141,059

			1,163,386

Containers & Packaging — 1.3%
Owens-Illinois, Inc.(a)	13,900		165,271
Smurfit-Stone Container Corp.(a)	5,090		94,521

			259,792

Cosmetics/Toiletries — 1.5%
Avon Products, Inc.	1,370		92,461
Kimberly-Clark Corp.	3,490		206,224

			298,685

Diversified Manufacturing Operations — 5.4%
Cooper Industries Ltd. (Class “A” Stock)	700		40,551
Danaher Corp.	420		38,535
Eaton Corp.	110		11,878
General Electric Co.	11,070		342,949
Illinois Tool Works, Inc.	620		52,024
Newell Rubbermaid, Inc.	10,130		230,660
Tyco International Ltd.	14,500		384,250

			1,100,847


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies — 12.3%
Abbott Laboratories	2,110	$	98,326
Amgen, Inc.(a)	1,250		77,250
Applera Corp.-Applied Biosystems Group	2,240		46,390
Baxter International, Inc.	5,871		179,183
Eli Lilly & Co.	1,340		94,242
Genzyme Corp.(a)	1,639		80,868
Gilead Sciences, Inc.(a)	2,800		162,792
Johnson & Johnson	9,030		466,490
Medtronic, Inc.	1,620		78,748
Merck & Co., Inc.	5,230		241,626
Pfizer, Inc.	13,926		492,006
Schering-Plough Corp.	22,635		393,623
Wyeth	2,300		97,635

			2,509,179

Electronic Components — 2.2%
Amphenol Corp. (Class “A” Stock)(a)	400		25,572
Emerson Electric Co.	720		46,620
Flextronics International Ltd. (Singapore)(a)	4,410		65,444
Molex, Inc.	1,750		61,058
Parker Hannifin Corp.	520		30,940
Synopsys, Inc.(a)	1,130		38,149
Texas Instruments, Inc.	3,330		97,835
Thermo Electron Corp.(a)	3,090		77,868

			443,486

Financial Services — 8.6%
American Express Co.	3,480		167,840
Citigroup, Inc.	8,819		428,074
Fannie Mae	700		52,542
FleetBoston Financial Corp.	2,580		112,617
Freddie Mac	3,620		211,118
Goldman Sachs Group, Inc.	1,250		123,413
JPMorgan	3,240		119,005
MBNA Corp.	3,550		88,218
Merrill Lynch & Co., Inc.	6,060		355,419
PNC Financial Services Group	1,300		71,149
SLM Corp.	220		8,290

			1,737,685

Food & Beverage — 0.4%
PepsiCo, Inc.	1,850		86,247

Hospital Management — 0.6%
Tenet Healthcare Corp.(a)	7,430		119,251

Insurance — 5.7%
ACE Ltd. (Cayman Islands)	1,720		71,242
Allstate Corp.	5,930		255,109
American International Group, Inc.	2,950		195,526
Hartford Financial Services Group, Inc. (The)	5,498		324,547
Marsh & McLennan Companies, Inc.	1,130		54,116
Montpelier Re Holdings, Ltd. (Bermuda)	10		367
Travelers Property Casualty Corp. (Class “A” Stock)	11,130		186,761
UnumProvident Corp.	2,390		37,690

SEE NOTES TO FINANCIAL STATEMENTS.

B73




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Insurance (cont’d.)
XL Capital, Ltd. (Class “A” Stock) (Bermuda)	490	$	38,000

			1,163,358

Internet — 1.9%
Akamai Technologies, Inc.(a)	4,780		51,385
InterActiveCorp(a)	3,470		117,737
Monster Worldwide, Inc.(a)	2,000		43,920
Network Associates, Inc.(a)	11,670		175,517

			388,559

Leisure — 0.7%
Carnival Corp.	730		29,003
Hilton Hotels Corp.	5,005		85,736
Starwood Hotels & Resorts Worldwide, Inc.	830		29,855

			144,594

Media — 7.7%
Clear Channel Communications, Inc.	3,070		143,768
ComCast Corp. (Class “A” Stock)(a)	13,540		423,531
Cox Communications, Inc. (Class “A” Stock)(a)	1,160		39,962
Entercom Communications Corp.(a)	620		32,835
New York Times Co. (The) (Class “A” Stock)	1,670		79,809
Time Warner, Inc.(a)	3,160		56,849
Univision Communications, Inc. (Class “A” Stock)(a)	2,010		79,777
Viacom, Inc. (Class “B” Stock)	13,735		609,559
Walt Disney Co. (The)	45		1,050
Westwood One, Inc.(a)	3,080		105,367

			1,572,507

Metals — 1.0%
Alcoa, Inc.	5,480		208,240

Networking Products — 2.0%
Cisco Systems, Inc.(a)	13,710		333,016
Foundry Networks, Inc.(a)	1,840		50,342
Juniper Networks, Inc.(a)	1,540		28,767

			412,125

Oil – Exploration & Production — 4.9%
Devon Energy Corp.	2,930		167,772
GlobalSantaFe Corp.	11,900		295,477
NiSource, Inc.	6,130		134,492
Noble Corp. (Cayman Islands)(a)	7,740		276,937
Occidental Petroleum Corp.	2,840		119,962

			994,640

Oil & Gas Services — 3.0%
BJ Services Co.(a)	4,040		145,036
Calpine Corp.(a)	42,340		203,655
Cooper Cameron Corp.(a)	2,760		128,616
Schlumberger Ltd.	2,440		133,517

			610,824


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Paper & Forest Products — 0.8%
Boise Cascade Corp.	850	$	27,931
Bowater, Inc.	2,810		130,131

			158,062

Restaurants — 0.8%
McDonald’s Corp.	3,020		74,987
Outback Steakhouse, Inc.	2,000		88,420

			163,407

Retail — 8.1%
Chico’s FAS, Inc.(a)	60		2,217
CVS Corp.	1,700		61,404
Home Depot, Inc.	5,450		193,420
Hot Topic, Inc.(a)	1,100		32,406
Kohl’s Corp.(a)	3,000		134,820
Kroger Co.(a)	12,110		224,156
Pier 1 Imports, Inc.	1,240		27,106
Reebok International Ltd.	2,380		93,582
Rite Aid Corp.(a)	10,770		65,051
Sears, Roebuck & Co.	5,995		272,713
Staples, Inc.(a)	2,750		75,075
Target Corp.	4,510		173,184
TJX Companies, Inc.	2,190		48,290
Wal-Mart Stores, Inc.	2,890		153,314
Walgreen Co.	1,340		48,749
Williams-Sonoma, Inc.(a)	1,270		44,158

			1,649,645

Semiconductors — 3.5%
Analog Devices, Inc.	3,340		152,471
Linear Technology Corp.	1,760		74,043
Marvell Technology Group Ltd. (Bermuda)(a)	1,970		74,722
Maxim Integrated Products, Inc.	1,600		79,680
Microchip Technology, Inc.	2,500		83,400
Novellus Systems, Inc.(a)	1,690		71,064
PMC-Sierra, Inc.(a)	2,770		55,816
Xilinx, Inc.(a)	3,000		116,220

			707,416

Telecommunications — 9.6%
ADTRAN, Inc.	4,060		125,860
Amdocs Ltd. (Channel Islands)(a)	1,640		36,867
AT&T Corp.	14,720		298,816
AT&T Wireless Services, Inc.(a)	58,870		470,372
Corning, Inc.(a)	4,800		50,064
EchoStar Communications Corp. (Class “A” Stock)(a)	1,160		39,440
Nokia Oyj, ADR (Finland)(a)	5,350		90,950
Nortel Networks Corp. (Canada)(a)	17,250		72,968
QUALCOMM, Inc.	340		18,336
Sprint Corp. (PCS Group)(a)	6,110		34,338
Telephone and Data Systems, Inc.	3,200		200,160
Verizon Communications, Inc.	14,490		508,309
Winstar Communications, Inc.(a)	930		1

			1,946,481

SEE NOTES TO FINANCIAL STATEMENTS.

B74




		*SP MFS CAPITAL OPPORTUNITIES PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Trucking/Shipping — 0.8%
FedEx Corp.	1,380	$	93,150
United Parcel Service, Inc. (Class “B” Stock)	850		63,367

			156,517

Utilities – Electric — 1.1%
FirstEnergy Corp.	1,100		38,720
TXU Corp.	7,370		174,816

			213,536

TOTAL LONG-TERM INVESTMENTS (cost $17,087,413)			19,511,624


SHORT-TERM INVESTMENT — 4.4%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. 0.50%, 1/2/04(b) (cost $881,021)	$	881	$	881,021

TOTAL INVESTMENTS — 100.4% (cost $17,968,434; Note 6)				20,392,645
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.4)%				(75,256	)

NET ASSETS — 100%			$	20,317,389

The following abbreviation is used in portfolio description:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $881,045 due 1/2/04. The value of the collateral including accrued interest was $903,465, collaterized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B75




		*SP MID-CAP GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 100.1%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Airlines — 0.7%
JetBlue Airways Corp.(a)	16,000	$	424,320

Apparel — 4.0%
Coach, Inc.(a)	46,500		1,755,375
Pacific Sunwear of California, Inc.(a)	27,500		580,800

			2,336,175

Biotechnology — 1.2%
Martek Biosciences Corp.(a)	11,000		714,670

Building & Construction — 1.9%
KB HOME	15,300		1,109,556

Computers — 2.1%
Apple Computer, Inc.(a)	25,000		534,250
Western Digital Corp.(a)	60,000		707,400

			1,241,650

Computer Services — 5.9%
Lexar Media, Inc.(a)	34,700		604,821
Maxtor Corp.(a)	44,400		492,840
Research In Motion Ltd.(a)	11,700		781,911
SanDisk Corp.(a)	16,500		1,008,810
Unisys Corp.(a)	41,000		608,850

			3,497,232

Drugs & Medical Supplies — 13.0%
ALARIS Medical, Inc.(a)	42,000		638,820
Beckman Coulter, Inc.	5,100		259,233
Celgene Corp.(a)	16,150		727,073
Connetics Corp.(a)	6,000		108,960
Gen-Probe, Inc.(a)	22,000		802,340
IDEXX Laboratories, Inc.(a)	15,000		694,200
ILEX Oncology, Inc.(a)	7,000		148,750
IVAX Corp.(a)	24,500		585,060
Pharmaceutical Resources, Inc.(a)	10,000		651,500
Sepracor, Inc.(a)	26,700		638,931
St. Jude Medical, Inc.(a)	7,000		429,450
Stryker Corp.	8,000		680,080
Zimmer Holdings, Inc.(a)	18,500		1,302,400

			7,666,797

Electronics — 5.0%
Garmin Ltd.	8,100		441,288
Harman International Industries, Inc.	27,900		2,064,042
PerkinElmer, Inc.	26,500		452,355

			2,957,685

Financial Services — 1.6%
Ameritrade Holding Corp.(a)	66,300		932,841

Healthcare Services — 3.7%
Humana, Inc.(a)	45,500		1,039,675
Laboratory Corp. of America Holdings(a)	16,500		609,675
Odyssey Healthcare, Inc.(a)	19,000		555,940

			2,205,290

Internet — 7.5%
Priceline.com, Inc.(a)	30,000		537,000
Symantec Corp.(a)	48,800		1,690,920
United Online, Inc.(a)	20,600		345,874


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Internet (cont’d.)
VeriSign, Inc.(a)	40,000	$	652,000
Yahoo!, Inc.(a)	26,600		1,201,522

			4,427,316

Leisure — 2.3%
GTECH Holdings Corp.	12,700		628,523
International Game Technology	20,500		731,850

			1,360,373

Media — 1.3%
Fox Entertainment Group, Inc. (Class “A” Stock)(a)	25,400		740,410

Mining — 1.1%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	15,200		640,376

Networking Products — 6.1%
Foundry Networks, Inc.(a)	67,000		1,833,120
Juniper Networks, Inc.(a)	94,900		1,772,732

			3,605,852

Oil & Gas Exploration & Production — 3.8%
Apache Corp.	11,975		971,173
EOG Resources, Inc.	10,400		480,168
Halliburton Co.	16,000		416,000
Pogo Producing Co.	8,100		391,230

			2,258,571

Paper & Paper Products — 1.2%
Georgia-Pacific Corp.	24,100		739,147

Personal Products — 1.9%
Energizer Holdings, Inc.(a)	14,500		544,620
Estee Lauder Cos, Inc. (Class “A” Stock)	14,000		549,640

			1,094,260

Restaurants — 3.0%
Applebee’s International, Inc.	18,000		706,860
McDonald’s Corp.	23,800		590,954
P. F. Chang’s China Bistro, Inc.(a)	9,000		457,920

			1,755,734

Retail — 4.4%
Amazon.com, Inc.(a)	20,000		1,052,800
Chico’s FAS, Inc.(a)	24,000		886,800
Fortune Brands, Inc.	8,900		636,261

			2,575,861

Schools — 3.8%
Apollo Group, Inc. (Class “A” Stock)(a)	16,000		1,088,000
ITT Educational Services, Inc.(a)	24,000		1,127,280

			2,215,280

Semiconductors — 7.1%
Advanced Micro Devices, Inc.(a)	72,600		1,081,740
Amkor Technology, Inc.(a)	33,300		606,393
ATI Technologies, Inc.(a)	30,000		453,600
Conexant Systems, Inc.(a)	62,000		308,140
GlobespanVirata, Inc.(a)	22,700		133,476
LSI Logic Corp.(a)	52,900		469,223
National Semiconductor Corp.(a)	16,000		630,560
QLogic Corp.(a)	10,000		516,000

			4,199,132

SEE NOTES TO FINANCIAL STATEMENTS.

B76




		*SP MID-CAP GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Software — 7.4%
Adobe Systems, Inc.	13,300	$	522,690
Citrix Systems, Inc.(a)	25,500		540,855
Cognos, Inc.(a)	12,600		385,812
Electronic Arts, Inc.(a)	28,000		1,337,840
Novell, Inc.(a)	87,000		915,240
Pixar, Inc.(a)	9,500		658,255

			4,360,692

Telecommunications — 7.3%
ADTRAN, Inc.	23,000		713,000
Corning, Inc.(a)	100,000		1,043,000
EchoStar Communications Corp. (Class “A” Stock)(a)	8,600		292,400
Nextel Communications, Inc. (Class “A” Stock)(a)	53,500		1,501,210
Scientific-Atlanta, Inc.	16,500		450,450
Sonus Networks, Inc.(a)	36,800		278,208

			4,278,268

Toys — 1.9%
Hasbro, Inc.	35,000		744,800
Marvel Enterprises, Inc.(a)	12,000		349,320

			1,094,120

Transport Services — 0.9%
J.B. Hunt Transport Services, Inc.(a)	20,000		540,200

TOTAL LONG-TERM INVESTMENTS (cost $49,117,835)			58,971,808



SHORT-TERM INVESTMENT — 2.1%	Principal Amount (000)		Value (Note 2)
Repurchase Agreement
State Street Bank & Trust Co. Repurchase Agreement 0.50%, 1/2/04(b) (cost $1,260,918)	$	1,261		1,260,918

TOTAL INVESTMENTS — 102.2% (cost $50,378,753; Note 6)				60,232,726
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.2)%				(1,325,049	)

NET ASSETS — 100%			$	58,907,677

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $1,260,953 due 1/2/04. The value of the collateral including accrued interest was $1,286,740. Collateralized by United States Treasury or federal agency obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

B77




		*SP PIMCO TOTAL RETURN PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 43.7% LONG-TERM BONDS — 43.7%	Moody’s Rating (Unaudited)		Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

ASSET BACKED SECURITIES — 0.1%
Block Mortgage Finance, Inc., Series 1998-2(b)	Aaa		1.32	%	08/25/28	$	112	$	111,242
Brazos Student Loan Finance Corp., Series 1998-A(b)	Aaa		1.91	%	06/01/23		314		317,237
First Nationwide Trust, Series 2001-4	AAA	(c)	8.50	%	08/25/31		61		61,914
Wells Fargo Mortgage Backed Securities Trust, Series 2001-25(b)	Aaa		6.37	%	10/25/31		91		91,238

									581,631

COLLATERALIZED MORTGAGE OBLIGATIONS — 3.1%
Bear Stearns Adjustable Rate Mortgage Trust, Series 2002-05(b)	Aaa		5.98	%	06/25/32		910		942,295
Bear Stearns Adjustable Rate Mortgage Trust, Series 2002-11(b)	Aaa		5.65	%	02/25/33		1,442		1,452,686
Countrywide Home Loans, Series 2002-7(b)	Aaa		5.51	%	05/19/32		274		282,081
Federal Home Loan Mortgage Corp., Series 2504	AAA	(c)	5.25	%	04/15/26		700		704,069
Federal Home Loan Mortgage Corp., Series 2535	AAA	(c)	5.00	%	09/15/16		3,875		3,990,060
Federal National Mortgage Association, Series 2001-13	AAA	(c)	6.00	%	12/25/28		172		173,577
Federal National Mortgage Association, Series 2001-29	AAA	(c)	6.50	%	06/01/31		353		369,219
Federal National Mortgage Association, Series 2002-16	AAA	(c)	5.50	%	07/25/29		532		533,406
Federal National Mortgage Association, Series 2002-9	AAA	(c)	6.00	%	07/25/28		611		612,942
Federal National Mortgage Association, Series 2003-W1	AAA	(c)	6.50	%	12/25/42		1,814		1,926,216
G-Wing, Ltd., Series 2001-WH1A(b)	BBB	(c)	3.82	%	11/06/11		146		144,949
Government Lease Trust, Series 1999-C1A	NR		4.00	%	05/18/11		1,500		1,422,112
Government National Mortgage Association, Series 2000-14(b)	Aaa		1.80	%	02/16/30		80		80,343
Homeside Mortgage Securities Trust, Series 2001-1(b)	Aaa	(c)	1.35	%	01/20/27		148		146,429
Indymac Arm Trust, Series 2001-H2(b)	Aaa		6.697	%	01/25/31		63		64,314
Master Asset Securitization Trust, Series 2003-7	AAA	(c)	5.50	%	09/25/33		5,898		5,872,841
Mellon Residential Funding Corp., Series 1999-TBC2(b)	NR		3.79	%	07/25/29		99		98,611
Mortgage Capital Funding, Inc., Series 1996-MC1	AAA	(c)	7.90	%	02/15/06		232		253,149
Residential Asset Securitization Trust, Series 1999-A8	Aaa		7.875	%	01/25/30		57		57,808
Residential Funding Mortgage Securities I, Series 2003-S9	Aaa		6.50	%	03/25/32		2,345		2,417,672
Structured Asset Mortgage Investments, Inc., Series 1999-1(b)	AAA	(c)	6.53	%	06/25/29		129		132,353
Washington Mutual, Inc., Series 2002-AR2(b)	Aaa		3.159	%	02/27/34		2,526		2,565,857
Washington Mutual, Inc., Series 2003-AR1(b)	Aaa		5.43	%	02/25/33		1,495		1,522,461

									25,765,450

CORPORATE BONDS — 5.1%
Airlines
United Air Lines, Inc., Pass-Through Certs. Series A-4(a)	Ca		9.21	%	01/21/17		200		81,616

Financial Services — 2.3%
CIT Group, Inc., M.T.N.(b)	A2		2.67	%	03/01/04		1,250		1,252,794
Ford Motor Credit Co.	A3		6.70	%	07/16/04		4,000		4,102,772
Ford Motor Credit Co.	A3		7.25	%	10/25/11		2,250		2,440,269
Ford Motor Credit Co., M.T.N.(b)	A3		1.98	%	03/08/04		1,700		1,701,106
General Motors Acceptance Corp.	A3		6.875	%	09/15/11		2,500		2,692,818
General Motors Acceptance Corp., M.T.N.(b)	A3		1.52	%	07/21/04		1,000		1,000,138
General Motors Acceptance Corp., M.T.N.(b)	A3		2.41	%	10/20/05		2,600		2,619,523
PEMEX Master Trust	Baa1		7.375	%	12/15/14		300		320,250
PEMEX Master Trust	Baa1		8.625	%	02/01/22		500		553,750
PEMEX Master Trust	Baa1		9.125	%	10/13/10		2,000		2,375,000

									19,058,420

Metals & Mining — 0.5%
Alcan Corp.(b)	Baa1		1.43%		12/08/04		4,000		3,989,536

Oil & Gas — 0.8%
El Paso Corp.	Caa1		7.00%		05/15/11		200		184,500
El Paso Corp.	Caa1		7.125%		05/06/09		EUR1,200		1,362,259
El Paso Energy Corp., M.T.N.	Caa1		7.75%		01/15/32	$	2,240		1,909,600

SEE NOTES TO FINANCIAL STATEMENTS.

B78




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

Oil & Gas (cont’d.)
El Paso Energy Corp., M.T.N.	Caa1	7.80	%	08/01/31	$	1,250	$	1,064,062
Petroleos Mexicanos, (Mexico)	Baa1	9.25	%	03/30/18		1,700		1,980,500
The Williams Cos., Inc.	B3	7.50	%	01/15/31		500		506,250

								7,007,171

Telecommunications — 0.5%
AT&T Corp.(f)	Baa2	8.05	%	11/15/11		500		575,490
Qwest Capital Funding, Inc.	Caa2	7.25	%	02/15/11		200		197,000
Qwest Corp.	Ba3	8.875	%	03/15/12		2,650		3,040,875

								3,813,365

Utility – Electric — 0.6%
Entergy Gulf States, Inc.(b)	Baa3	2.07	%	06/18/07		3,500		3,507,886
FirstEnergy Corp., Series C	Baa2	7.375	%	11/15/31		900		920,679
Texas Utilities Electric Co.	Baa1	8.25	%	04/01/04		1,000		1,015,630

								5,444,195

Waste Management — 0.4%
Waste Management, Inc.	Baa3	7.00	%	10/15/06		2,775		3,059,388

Total Corporate Bonds								42,453,691

FOREIGN GOVERNMENT BONDS — 8.1%
Federal Republic of Brazil, (Brazil)	B2	8.00	%	04/15/14		7,388		7,268,767
Federal Republic of Germany, (Germany)	Aaa	4.25	%	03/12/04		EUR12,520		15,856,083
Federal Republic of Germany, (Germany)	Aaa	4.50	%	07/04/09-01/04/13		25,650		33,663,334
Federal Republic of Panama, (Panama)	Ba1	8.25	%	04/22/08	$	1,800		1,980,000
Federal Republic of Panama, (Panama)	Ba1	8.875	%	09/30/27		750		787,500
Federal Republic of Peru, (Peru)	Ba3	9.125	%	01/15/08		500		587,500
Federal Republic of Peru, (Peru)	Ba3	9.875	%	02/06/15		2,500		2,900,000
Russian Federation, (Russia)	Ba3	5.00	%	03/31/30		3,250		3,116,750
United Mexican States, (Mexico)	Baa2	8.375	%	01/14/11		1,500		1,781,250

								67,941,184

MUNICIPAL BONDS — 5.6%
Arizona Edl. Ln. Marketing Corp., Edl. Ln. Rev., Series E(b)	Aaa	1.23	%	12/01/37		5,000		5,000,000
Brazos Higher Edl. Auth., Inc., Student Ln. Rev., Series A(b)	Aaa	1.07	%	12/01/36		3,100		3,100,000
California St., Rev. Antic. Wts., Ser. A	MIG1	2.00	%	06/16/04		5,900		5,912,626
Chicago, IlI., G.O., Proj. & Ref., Ser. A	Aaa	5.00	%	01/01/41		300		304,644
Clark Cnty. Nev., Bond Bank, G.O., M.B.I.A.	Aaa	5.00	%	06/01/32		3,000		3,057,390
Dallas, TX Indpt. Sch. Dist.	Aaa	5.00	%	02/15/21		2,000		2,095,720
Educational Funding South, Inc., Auction Rate, Ser. A(b)	Aaa	1.18	%	06/01/38		3,000		3,000,000
Georgia St., Rd. & Thrwy. Auth. Rev.	Aaa	5.00	%	03/01/21		700		738,087
Golden St. Tobacco Securitization Corp., Ser. 2003-A-1	Baa2	6.25	%	06/01/33		2,500		2,390,000
Golden St. Tobacco Securitization Corp., Ser. 2003-A-1	Baa2	6.75	%	06/01/39		2,000		1,967,580
Illinois St., G.O., Taxable Pension	Aa3	5.10	%	06/01/33		6,300		5,762,484
Massachusetts St. Wtr. Res. Auth., Ser. J, F.S.A.	Aaa	5.00	%	08/01/32		2,500		2,560,175
Salt River Proj., Ariz., Agricultural Impvt. & Pwr. Dist. Elec. Sys. Rev., Ser. B	Aa2	4.75	%	01/01/32		2,000		2,004,360
South Carolina St. Hwy., Ser. B	Aaa	5.00	%	04/01/17		2,000		2,167,940
Tobacco Settlement Fin. Corp.	Baa2	6.375	%	06/01/32		2,000		1,914,820
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A	Baa2	6.25	%	06/01/42		400		362,012
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A-1	A3	5.50	%	06/01/15		2,000		2,146,000
Tobacco Settlement Fin. Corp., Asset Bkd., Ser. A	Baa2	6.125	%	06/01/32		1,205		1,100,105
Triborough Bridge & Tunnel Auth., NY, Rev., Rfdg., Ser. B	Aa3	5.00	%	11/15/32		1,860		1,897,293

								47,481,236

SEE NOTES TO FINANCIAL STATEMENTS.

B79




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM BONDS (Continued)	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)		Value (Note 2)

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 13.1%
United States Treasury Bonds		5.375	%	02/15/31	$	5,200	$	5,422,830
United States Treasury Bonds		6.00	%	02/15/26		9,800		10,867,661
United States Treasury Bonds		7.50	%	11/15/16		12,500		15,914,063
United States Treasury Bonds		8.125	%	08/15/19		150		202,617
United States Treasury Notes		1.625	%	10/31/05		7,950		7,937,582
United States Treasury Notes(e)		3.375	%	01/15/07		18,859		20,429,073
United States Treasury Notes		3.50	%	01/15/11		5,155		5,793,440
United States Treasury Notes		3.625	%	01/15/08		18,323		20,263,615
United States Treasury Strip I/O		zero		02/15/15-02/15/22		54,950		22,358,712
United States Treasury Strip P/O		zero		02/15/27		3,400		952,398

								110,141,991

U.S. GOVERNMENT MORTGAGE BACKED SECURITIES — 8.6%
Federal National Mortgage Association		4.00	%	07/01/18-10/01/18		48,401		47,226,260
Federal National Mortgage Association(b)		4.191	%	05/01/36		201		204,417
Federal National Mortgage Association		4.50	%	06/01/33-09/01/33		11,609		11,115,289
Federal National Mortgage Association		4.872	%	12/01/36		4,892		4,977,703
Federal National Mortgage Association		5.00	%	01/01/18		106		108,284
Federal National Mortgage Association		5.936	%	11/01/11		978		1,064,898
Federal National Mortgage Association		6.00	%	04/01/13-01/01/23		6,272		6,575,890
Government National Mortgage Association(b)		4.375	%	04/20/25-05/20/25		151		154,408
Government National Mortgage Association		4.50	%	09/15/33		61		58,114
Government National Mortgage Association(b)		4.75	%	08/20/24-08/20/27		461		471,147
Government National Mortgage Association		8.00	%	12/15/30-04/15/31		327		356,284
Government National Mortgage Association		9.00	%	07/15/30-10/15/30		18		20,381

								72,333,075

TOTAL LONG-TERM BONDS								366,698,258


WARRANTS(j)				Expiration Date	Shares
Mexico Value, Ser. B				06/01/04		1,000		7,500
Mexico Value, Ser. C				06/01/05		1,000		1,000
Mexico Value, Ser. D				06/30/06		1,000		1,000
Mexico Value, Ser. E				06/01/07		1,000		600

TOTAL WARRANTS								10,100

TOTAL LONG-TERM INVESTMENTS (cost $359,580,718)								366,708,358


SHORT-TERM INVESTMENTS — 56.0%	Moody’s Rating (Unaudited)	Interest Rate		Maturity Date	Principal Amount (000)
CORPORATE OBLIGATIONS — 18.4%
ABN-Amro Bank NA	P-1	1.07	%	02/17/04	$	1,800		1,797,485
Danske Corp.	P-1	1.07	%	03/22/04		20,000		19,951,850
General Electric Capital Corp.	P-1	1.09	%	02/09/04		15,000		14,982,287
General Electric Capital Corp.	P-1	1.12	%	03/04/04		2,400		2,395,296
Kraft Foods, Inc.	P2	1.97	%	02/27/04		5,800		5,800,250
National Australia Funding, Inc.	NR	1.075	%	02/10/04		15,800		15,781,128
Nestle Capital Corp.	NR	1.06	%	02/12/04		20,000		19,975,267
Rabobank USA Financial Corp.	NR	1.07	%	01/20/04		15,000		14,991,529
Shell Finance BV (Netherlands)	NR	1.09	%	03/08/04		20,000		19,959,428
Toyota Motor Credit Corp.	NR	1.06	%	01/06/04-01/13/04		22,800		22,795,407
UBS Finance, Inc.	P-1	1.06	%	01/21/04		16,000		15,990,578

								154,420,505

SEE NOTES TO FINANCIAL STATEMENTS.

B80




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003



SHORT-TERM INVESTMENTS (Continued)	Interest Rate	Maturity Date	Principal Amount (000)	Value (Note 2)

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 31.3%
Federal Home Loan Bank	1.025%	01/23/04	$50,000	$	49,968,680
Federal Home Loan Mortgage Corp.	zero	01/08/04	13,100		13,097,300
Federal National Mortgage Association	1.00%	02/04/04	8,900		8,891,595
Federal National Mortgage Association	1.01%	02/03/04	60,300		60,244,172
United States Treasury Bills	zero	06/10/04	30,000		29,867,175
United States Treasury Bills	0.852%	03/18/04	500		499,089
United States Treasury Bills	0.88%	03/11/04	1,250		1,247,861
United States Treasury Bills	0.882%	03/18/04	5,650		5,639,335
United States Treasury Bills	0.885%	03/18/04	5,340		5,329,897
United States Treasury Bills	0.895%	03/11/04	2,250		2,246,084
United States Treasury Bills	0.955%	06/17/04	30,000		29,866,300
United States Treasury Bills(i)	0.995%	04/08/04	26,100		25,984,149
United States Treasury Bills	1.015%	06/03/04	30,000		29,869,742

					262,751,379

REPURCHASE AGREEMENT — 6.3%
State Street Bank & Trust Co., (d) (cost $52,274,066)	0.50%	01/02/04	52,274		52,274,066

OUTSTANDING OPTIONS PURCHASED
Put Options
			Contracts
Euro Futures, expiring 3/15/04 @ $ 96.25			200		1,250
Euro Futures, expiring 6/14/04 @ $ 94.50			400		2,500

Total option — cost					3,750

TOTAL SHORT-TERM INVESTMENTS (cost $469,451,650)					469,449,700

TOTAL INVESTMENTS BEFORE OUTSTANDING OPTIONS WRITTEN AND INVESTMENTS SOLD SHORT (cost $829,032,368; Note 6)					836,158,058

OUTSTANDING OPTIONS WRITTEN(a) — (0.5%)
Call Options — (0.2%)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 5.0%			11,500,000		(445,912	)
Swap Option 3 month LIBOR, expiring 10/7/04 @ 4.0%			6,200,000		(40,071	)
Swap Option 3 month LIBOR, expiring 3/3/04 @ 3.25%			24,800,000		(47,318	)
Swap Option 3 month LIBOR, expiring 7/3/06 @ 4.0%			35,300,000		(381,946	)
Swap Option 3 month LIBOR, expiring 9/23/05 @ 4.0%			59,200,000		(682,162	)

					(1,597,409	)

Put Options — (0.3%)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 7.0%			3,500,000		(16,527	)
Swap Option 3 month LIBOR, expiring 1/7/05 @ 7.0%			8,000,000		(37,776	)
Swap Option 3 month LIBOR, expiring 10/7/04 @ 6.0%			6,200,000		(82,820	)
Swap Option 3 month LIBOR, expiring 7/3/06 @ 6.0%			35,300,000		(1,258,727	)
Swap Option 3 month LIBOR, expiring 9/23/05 @ 7.0%			59,200,000		(762,911	)

					(2,158,761	)

TOTAL OUTSTANDING OPTIONS WRITTEN (premium received $4,862,208)					(3,756,170	)

SEE NOTES TO FINANCIAL STATEMENTS.

B81




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003



SHORT-TERM INVESTMENTS (Continued)	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 2)
INVESTMENTS SOLD SHORT — (19.5%)
U.S. Government & Agency Obligations
Federal National Mortgage Association	5.50%	TBA	$	(63,700	)	$	(64,971,706	)
United States Treasury Notes	3.00%	11/15/07		(6,300	)		(6,354,142	)
United States Treasury Notes	3.625%	05/15/13		(62,400	)		(59,979,566	)
United States Treasury Notes	4.25%	08/15/13		(15,550	)		(15,569,438	)
United States Treasury Notes	4.375%	05/15/07		(5,500	)		(5,824,198	)
United States Treasury Notes	5.50%	05/15/09		(9,900	)		(11,009,493	)

TOTAL INVESTMENTS SOLD SHORT (proceeds received $162,401,247)							(163,708,543	)

TOTAL INVESTMENTS, NET OF OUTSTANDING OPTIONS WRITTEN AND INVESTMENTS SOLD SHORT — 79.7% (cost $661,768,913)							668,693,345
VARIATION MARGIN ON OPEN FUTURES CONTRACTS(g)							511,232


UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS — (0.2%)(h)		(1,901,907	)
OTHER ASSETS IN EXCESS OF OTHER LIABILITIES — 20.5%		171,821,902

TOTAL NET ASSETS — 100.0%	$	839,124,572

The following abbreviations are used in portfolio descriptions:


F.S.A.		Financial Security Assurance
G.O.		General Obligation
I/O		Interest Only
M.B.I.A.		Municipal Bond Insurance Association
M.T.N.		Medium Term Note
NR		Not Rated by Moody’s or Standard & Poor’s
P/O		Principal Only
TBA		Securities purchased on a forward commitment basis

(a)	Represents issuer in default on interest payments, non-income producing security.

(b)	Rate shown reflects current rate on variable rate instrument.

(c)	Standard & Poor’s rating.

(d)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $52,275,518 due 1/2/04. The value of the collateral including accrued interest was $53,319,903. The collateral consists of US Treasury or Federal Agency obligations.

(e)	Security segregated as collateral for futures contracts.

(f)	Increase/decrease in rate variable upon increase/decrease in Moody’s or Standard & Poor’s rating.

SEE NOTES TO FINANCIAL STATEMENTS.

B82




		*SP PIMCO TOTAL RETURN PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003

(g)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Long Positions:
95	Euribor	Dec 04	$	29,095,779	$	29,148,235	$	52,456
435	German 10 Yr Fed Bonds	Mar 04		61,095,856		62,067,530		971,674
19	Fin 5 Yr	Mar 04		2,632,149		2,648,925		16,776
106	LIBOR	Dec 04		22,642,057		22,588,084		(53,973	)
162	LIBOR	Sep 04		34,523,471		34,586,663		63,192
17	LIBOR	Mar 04		3,667,125		3,644,301		(22,824	)
18	LIBOR	Jun 04		3,875,588		3,851,824		(23,764	)
60	LIBOR	Mar 05		12,934,492		12,768,254		(166,238	)
14	Eurodollars	Dec 04		3,412,850		3,424,400		11,550
86	Eurodollars	Jun 05		20,816,503		20,857,150		40,647
223	Eurodollars	Sep 05		53,812,738		53,879,588		66,850
54	Eurodollars	Dec 05		12,995,775		13,005,900		10,125
66	Eurodollars	Mar 07		15,671,700		15,719,550		47,850
2,947	U.S. Treasury 10 Yr Notes	Mar 04		326,814,834		330,846,797		4,031,963
252	U.S. Treasury 5 Yr Notes	Mar 04		27,921,303		28,129,500		208,197

								5,254,481

Short Positions:
282	Eurodollars	Jun 05		68,158,058		68,392,050		(233,992	)
22	Eurodollars	Mar 05		5,354,525		5,358,650		(4,125	)
321	U.S. Treasury Bonds	Mar 04		34,581,243		35,089,313		(508,070	)

								(746,187	)

							$	4,508,294

(h)	Outstanding forward foreign currency contracts as of December 31, 2003 were as follows:


Forward Foreign Currency Contract	Value at Settlement Date		Value at December 31, 2003		Unrealized Appreciation/ (Depreciation)
Bought:
Euro expiring 1/7/04	$	4,046,708	$	4,169,191	$	122,483
Japanese Yen expiring 1/15/04		381,587		383,911		2,324

						124,807

Sold:
Euro expiring 1/7/04	$	51,386,765	$	53,344,453		(1,957,688	)
Pound Sterling expiring 1/23/04		1,996,661		2,065,687		(69,026	)

						(2,026,714	)

					$	(1,901,907	)

(i)	Rate quoted represents yield-to-maturity as of purchase date.

(j)	Non-income producing security.

SEE NOTES TO FINANCIAL STATEMENTS.

B83




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 91.7%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Airlines — 0.7%
AMR Corp.(a)	91,200	$	1,181,040

Automobiles — 0.5%
Harley-Davidson, Inc.	17,100		812,763

Biotechnology — 5.6%
Alkermes, Inc.(a)	114,600		1,547,100
Angiotech Pharmaceuticals, Inc. (Canada)(a)	15,600		717,600
Biogen Idec, Inc.(a)	59,800		2,199,444
Gilead Sciences, Inc.(a)	55,000		3,197,700
IDEXX Laboratories, Inc.(a)	22,900		1,059,812
MedImmune, Inc.(a)	30,500		774,700

			9,496,356

Capital Markets — 6.1%
E*TRADE Financial Corp.(a)	369,000		4,667,850
Eaton Vance Corp.	67,000		2,454,880
Legg Mason, Inc.	26,500		2,045,270
Merrill Lynch & Co., Inc.	20,400		1,196,460

			10,364,460

Commercial Services & Supplies — 6.0%
Apollo Group, Inc. (Class “A” Stock)(a)	46,800		3,182,400
ChoicePoint, Inc.(a)	44,100		1,679,769
CoStar Group, Inc.(a)	35,300		1,471,304
Monster Worldwide, Inc.(a)	180,600		3,965,976

			10,299,449

Communications Equipment — 0.4%
Advanced Fibre Communications, Inc.(a)	33,500		675,025

Computers & Peripherals — 0.8%
Network Appliance, Inc.(a)	49,900		1,024,447
Seagate Technology (Cayman Islands)	13,400		253,260

			1,277,707

Electronic Equipment & Instruments — 7.7%
Agilent Technologies, Inc.(a)	77,600		2,269,024
Amphenol Corp.(a)	53,500		3,420,255
Symbol Technologies, Inc.	234,700		3,964,083
Tektronix, Inc.	56,100		1,772,760
Waters Corp.(a)	48,500		1,608,260

			13,034,382

Energy Equipment & Services — 1.5%
BJ Services Co.(a)	72,800		2,613,520

Healthcare Equipment & Supplies — 2.5%
INAMED Corp.(a)	60,750		2,919,645
VISX, Inc.(a)	58,900		1,363,535

			4,283,180

Healthcare Providers & Services — 4.3%
Andrx Corp.(a)	70,000		1,682,800
Caremark Rx, Inc.(a)	46,800		1,185,444
WebMD Corp.(a)	491,100		4,414,989

			7,283,233

Household Durables — 1.2%
Harman International Industries, Inc.	5,000		369,900
Yankee Candle Co., Inc.(a)	60,700		1,658,931

			2,028,831


COMMON STOCKS		Value (Note 2)
Continued	Shares	Value (Note 2)
Internet & Catalog Retail — 1.6%
InterActiveCorp(a)	80,653	$	2,736,556

Internet Software & Services — 4.6%
Ask Jeeves, Inc.(a)	90,400		1,638,048
DoubleClick, Inc.(a)	311,400		3,182,508
RealNetworks, Inc.(a)	240,800		1,374,968
Yahoo!, Inc.(a)	37,700		1,702,909

			7,898,433

IT Services — 5.3%
Ceridian Corp.(a)	111,600		2,336,904
CheckFree Corp.(a)	113,900		3,149,335
DST Systems, Inc.(a)	41,600		1,737,216
Unisys Corp.(a)	126,900		1,884,465

			9,107,920

Machinery — 1.9%
Pall Corp.	120,700		3,238,381

Media — 5.7%
Entercom Communications Corp.(a)	33,500		1,774,160
Hughes Electronics Corp.(a)	84,544		1,399,203
Interpublic Group of Cos., Inc.(a)	134,900		2,104,440
Lin TV Corp. (Class “A” Stock)(a)	44,500		1,148,545
Univision Communications, Inc. (Class “A” Stock)(a)	40,000		1,587,600
Westwood One, Inc.(a)	48,100		1,645,501

			9,659,449

Pharmaceuticals — 8.7%
Allergan, Inc.	21,000		1,613,010
Barr Laboratories, Inc.(a)	25,450		1,958,378
IVAX Corp.(a)	138,100		3,297,828
Medicis Pharmaceutical Corp. (Class “A” Stock)	29,300		2,089,090
Sepracor, Inc.(a)	59,500		1,423,835
SICOR, Inc.(a)	57,200		1,555,840
Watson Pharmaceuticals, Inc.(a)	64,000		2,944,000

			14,881,981

Real Estate — 1.5%
Friedman, Billings, Ramsey Group, Inc. (Class “A” Stock)	114,100		2,633,428

Road & Rail — 0.5%
Norfolk Southern Corp.	34,100		806,465

Semiconductors & Semiconductor Equipment — 11.7%
Agere Systems, Inc. (Class “B” Stock)(a)	216,300		627,270
Altera Corp.(a)	87,000		1,974,900
AMIS Holdings, Inc.(a)	82,400		1,506,272
FormFactor, Inc.(a)	27,800		550,440
GlobespanVirata, Inc.(a)	223,800		1,315,944
Intel Corp.	35,400		1,139,880
International Rectifier Corp.(a)	84,200		4,160,322
KLA-Tencor Corp.(a)	56,800		3,332,456
Lam Research Corp.(a)	48,400		1,563,320
Linear Technology Corp.	31,600		1,329,412
Marvell Technology Group, Ltd.(a)	62,600		2,374,418

			19,874,634

SEE NOTES TO FINANCIAL STATEMENTS.

B84




		*SP PRUDENTIAL U.S. EMERGING GROWTH PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Software — 7.2%
Amdocs, Ltd. (United Kingdom)(a)	139,900	$	3,144,952
Fair Issac & Co., Inc.	44,400		2,182,704
Intuit, Inc.(a)	37,500		1,984,125
Mercury Interactive Corp.(a)	16,000		778,240
PeopleSoft, Inc.(a)	58,300		1,329,240
Synopsys, Inc.(a)	85,300		2,879,728

			12,298,989

Specialty Retail — 2.8%
Linens ‘n Things, Inc.(a)	56,100		1,687,488
PETCO Animal Supplies, Inc.(a)	47,400		1,443,330
Staples, Inc.(a)	61,900		1,689,870

			4,820,688

Textiles & Apparel — 0.5%
Tommy Hilfiger Corp.(a)	57,100		845,651

Trading Companies & Distributors — 1.1%
Fastenal Co.	38,700		1,932,678

Wireless Telecommunication Services — 1.3%
Nextel Partners, Inc. (Class “A” Stock)(a)	161,200		2,168,140

TOTAL LONG-TERM INVESTMENTS (cost $141,118,199)			156,253,339


		Value (Note 2)
	Shares	Value (Note 2)
SHORT-TERM INVESTMENT — 7.7%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series (cost $13,083,530; Note 4)	13,083,530	$	13,083,530

TOTAL INVESTMENTS — 99.4% (cost $154,201,729; Note 6)			169,336,869
OTHER ASSETS IN EXCESS OF LIABILITIES — 0.6%			1,004,169

NET ASSETS — 100%		$	170,341,038

(a)	Non-income producing security.

SEE NOTES TO FINANCIAL STATEMENTS.

B85




		*SP SMALL/MID CAP VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 98.8%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Advertising — 0.3%
Getty Images, Inc.(a)	15,600	$	782,028

Aerospace/Defense — 0.8%
DRS Technologies, Inc.(a)	790		21,946
Goodrich Corp.	42,700		1,267,763
United Defense Industries, Inc.(a)	23,000		733,240

			2,022,949

Agricultural Products & Services — 0.3%
Delta & Pine Land Co.	27,800		706,120

Airlines — 0.1%
Alaska Air Group, Inc.(a)	5,800		158,282

Apparel — 0.6%
OshKosh B’Gosh, Inc. (Class “A” Stock)	37,000		794,020
Russell Corp.	20,600		361,736
Wolverine World Wide, Inc.	22,100		450,398

			1,606,154

Appliances & Home Furnishings — 0.3%
Applica, Inc.	65,200		495,520
Kirkland’s, Inc.(a)	10,600		187,196

			682,716

Autos–Cars & Trucks — 2.4%
American Axle & Manufacturing Holdings, Inc.(a)	28,800		1,164,096
CarMax, Inc.(a)	14,900		460,857
Coachmen Industries, Inc.	40,880		740,337
Lear Corp.	22,200		1,361,526
Lithia Motors, Inc. (Class “A” Stock)	16,200		408,402
Midas, Inc.(a)	40,000		572,000
Monaco Coach Corp.(a)	6,600		157,080
Monro Muffler Brake, Inc.(a)	24,400		488,244
Superior Industries International, Inc.	4,000		174,080
United Auto Group, Inc.	13,500		422,550

			5,949,172

Banks and Savings & Loans — 11.2%
Alabama National BanCorp.	6,400		336,320
Bank of Hawaii Corp.	48,400		2,042,480
Boston Private Financial Holdings, Inc.	7,200		178,848
City National Corp.	31,700		1,969,204
Colonial BancGroup, Inc.	43,200		748,224
Commercial Federal Corp.	6,500		173,615
Community Bank System, Inc.	7,800		382,200
East West Bancorp, Inc.	19,200		1,030,656
First Niagara Financial Group, Inc.	45,067		671,949
FirstFed Financial Corp.(a)	7,700		334,950
FirstMerit Corp.	39,600		1,068,012
Hancock Holding Co.	13,600		742,152
Harbor Florida Bancshares, Inc.	28,100		834,851
Hawthorne Financial Corp.(a)	18,000		503,640
Huntington Bancshares, Inc.	13,900		312,750
IBERIABANK Corp.	12,500		737,500
IndyMac Bancorp, Inc.	57,700		1,718,883
Investors Financial Services Corp.	16,100		618,401
NetBank, Inc.	74,800		998,580
New York Community Bancorp, Inc.	21,200		806,660
Popular, Inc.	19,600		880,824


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Banks and Savings & Loans (cont’d.)
PrivateBancorp, Inc.	4,900	$	223,048
Provident Financial Services, Inc.	24,000		453,600
Republic Bancshares, Inc.	11,400		358,758
Santander BanCorp.	29,600		720,760
Silicon Valley Bancshares, Inc.(a)	31,500		1,136,205
Southwest Bancorp of Texas, Inc.	27,400		1,064,490
Southwest Bancorp, Inc.	35,300		631,164
Sovereign Bancorp, Inc.	75,600		1,795,500
Texas Regional Bancshares, Inc. (Class “A” Stock)	24,100		891,700
UCBH Holdings, Inc.	21,700		845,649
Valley National Bancorp	44,580		1,301,736
W Holding Co., Inc.	46,665		868,435
Webster Financial Corp.	14,700		674,142

			28,055,886

Biotechnology — 0.3%
Protein Design Labs, Inc.(a)	38,400		687,360

Business Services — 1.4%
infoUSA, Inc.(a)	97,900		726,418
Manpower, Inc.	28,700		1,351,196
MPS Group, Inc.(a)	95,600		893,860
National Processing, Inc.(a)	24,800		584,040

			3,555,514

Chemicals — 4.8%
Arch Chemicals, Inc.	45,700		1,172,662
Cabot Microelectronics Corp.(a)	15,500		759,500
Cytec Industries, Inc.(a)	41,800		1,604,702
Ferro Corp.	41,700		1,134,657
Georgia Gulf Corp.	27,700		799,976
IMC Global, Inc.	51,800		514,374
Ionics, Inc.(a)	22,100		703,885
Lyondell Chemical Co.	63,200		1,071,240
Methanex Corp. (Canada)	17,000		190,910
Millennium Chemicals, Inc.	103,100		1,307,308
Minerals Technologies, Inc.	6,300		373,275
Olin Corp.	45,600		914,736
PolyOne Corp.(a)	230,200		1,470,978

			12,018,203

Collectibles & Gifts — 0.2%
Action Performance Cos., Inc.	27,300		535,080

Commercial Services — 0.8%
Angelica Corp.	21,700		477,400
Insurance Auto Auctions, Inc.(a)	29,100		379,755
Labor Ready, Inc.(a)	35,700		467,670
Waste Connections, Inc.(a)	16,600		626,982

			1,951,807

Computer Software & Services — 3.2%
Autodesk, Inc.	44,300		1,088,894
Avocent Corp.(a)	27,900		1,018,908
Ceridian Corp.(a)	39,000		816,660
Diebold, Inc.	8,900		479,443
Electronics for Imaging, Inc.(a)	27,900		725,958
Maxtor Corp.(a)	55,300		613,830
NetScreen Technologies, Inc.(a)	8,300		205,425

SEE NOTES TO FINANCIAL STATEMENTS.

B86




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Computer Software & Services (cont’d.)
RadiSys Corp.(a)	21,990	$	370,751
SonicWALL, Inc.(a)	74,500		581,100
Storage Technology Corp.(a)	40,000		1,030,000
Tyler Technologies, Inc.	52,800		508,464
United Online, Inc.(a)	25,650		430,664
Vastera, Inc.(a)	21,700		86,800

			7,956,897

Construction — 3.4%
Chicago Bridge & Iron Co.	31,100		898,790
D.R. Horton, Inc.	25,600		1,107,456
Fluor Corp.	11,100		440,004
KB HOME	17,900		1,298,108
Martin Marietta Materials, Inc.	33,600		1,578,192
Pulte Homes, Inc.	5,400		505,548
Ryland Group, Inc.	18,100		1,604,384
Standard Pacific Corp.	21,400		1,038,970

			8,471,452

Consumer Products — 0.2%
Alberto-Culver Co. (Class “B” Stock)	10,100		637,108

Containers — 1.8%
Ball Corp.	11,900		708,883
Owens-Illinois, Inc.(a)	76,000		903,640
Packaging Corp. of America	62,200		1,359,692
Pactiv Corp.(a)	35,900		858,010
Silgan Holdings, Inc.(a)	18,300		779,397

			4,609,622

Distribution & Wholesalers — 2.2%
Bell Microproducts, Inc.(a)	74,200		672,252
Fastenal Co.	13,200		659,208
Ingram Micro, Inc. (Class “A” Stock)(a)	44,100		701,190
NBTY, Inc.	18,700		502,282
SCP Pool Corp.(a)	25,850		844,778
Tech Data Corp.(a)	37,400		1,484,406
United Natural Foods, Inc.(a)	19,100		685,881

			5,549,997

Diversified Manufacturing Operations — 3.1%
Actuant Corp. (Class “A” Stock)(a)	31,400		1,136,680
CUNO, Inc.(a)	10,462		471,104
ESCO Technologies, Inc.(a)	11,720		511,578
Pentair, Inc.	45,400		2,074,780
Steel Dynamics, Inc.(a)	35,800		840,942
Terex Corp.(a)	50,500		1,438,240
Thermo Electron Corp.(a)	48,100		1,212,120

			7,685,444

Drugs & Medical Supplies — 3.1%
Alkermes, Inc.(a)	29,900		403,650
Bausch & Lomb, Inc.	20,100		1,043,190
Edwards Lifesciences Corp.(a)	18,800		565,504
Hanger Orthopedic Group, Inc.(a)	24,800		386,136
Henry Schein, Inc.(a)	12,300		831,234
Kensey Nash Corp.(a)	16,300		378,975
Neurocrine Biosciences, Inc.(a)	6,600		359,964
Salix Pharmaceuticals, Ltd.(a)	22,600		512,342
Sepracor, Inc.(a)	15,200		363,736


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Drugs & Medical Supplies (cont’d.)
STERIS Corp.(a)	49,500	$	1,118,700
Watson Pharmaceuticals, Inc.(a)	38,600		1,775,600

			7,739,031

Electric Utility — 2.5%
Allegheny Energy, Inc.(a)	65,700		838,332
Cinergy Corp.	9,800		380,338
CMS Energy Corp.(a)	92,800		790,656
Energy East Corp.	16,900		378,560
SCANA Corp.	35,200		1,205,600
Sierra Pacific Resources(a)	224,900		1,650,766
Wisconsin Energy Corp.	28,400		949,980

			6,194,232

Electronics — 1.8%
AMETEK, Inc.	8,900		429,514
Arrow Electronics, Inc.(a)	39,700		918,658
Avnet, Inc.(a)	96,700		2,094,522
Benchmark Electronics, Inc.(a)	20,700		720,567
Hubbell, Inc. (Class “B” Stock)	10,200		449,820

			4,613,081

Energy — 1.5%
Aquila, Inc.(a)	146,000		494,940
Dynegy, Inc. (Class “A” Stock)(a)	151,100		646,708
Energen Corp.	20,400		837,012
Equitable Resources, Inc.	42,200		1,811,224

			3,789,884

Engineering — 0.3%
Jacobs Engineering Group, Inc.(a)	8,900		427,289
URS Corp.(a)	13,100		327,631

			754,920

Environmental Services — 0.4%
Republic Services, Inc.	36,600		938,058

Financial Services — 2.4%
Doral Financial Corp.	18,450		595,566
Legg Mason, Inc.	10,800		833,544
MGIC Investment Corp.	8,200		466,908
Old Republic International Corp.	50,250		1,274,340
Raymond James Financial, Inc.	31,000		1,168,700
Waddell & Reed Financial, Inc. (Class “A” Stock)	34,100		799,986
Wintrust Financial Corp.	18,100		816,310

			5,955,354

Food & Beverage — 1.6%
Chiquita Brands International, Inc.(a)	30,700		691,671
Dean Foods Co.(a)	25,848		849,624
Fresh Del Monte Produce, Inc.	29,900		712,517
Smithfield Foods, Inc.(a)	39,400		815,580
The J.M. Smucker Co.	21,400		969,206

			4,038,598

Hospitals & Healthcare Management — 3.3%
Accredo Health, Inc.(a)	19,400		613,234
American Healthways, Inc.(a)	19,710		470,478
Community Health Systems, Inc.(a)	37,200		988,776
Coventry Health Care, Inc.(a)	12,100		780,329

SEE NOTES TO FINANCIAL STATEMENTS.

B87




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Hospitals & Healthcare Management (cont’d.)
Humana, Inc.(a)	64,700	$	1,478,395
Manor Care, Inc.	26,800		926,476
Mariner Health Care, Inc.(a)	14,400		321,120
Molina Healthcare, Inc.(a)	17,700		446,571
PacifiCare Health Systems, Inc.(a)	15,400		1,041,040
Per-Se Technologies, Inc.(a)	30,900		471,534
WebMD Corp.(a)	73,700		662,563

			8,200,516

Index Funds — 4.6%
iShares Russell 2000 Value Index Fund, Inc.	46,700		7,490,680
IShares Russell Mid-Cap Value Index Fund, Inc.	42,100		3,927,930

			11,418,610

Industrials — 1.0%
Kennametal, Inc.	28,900		1,148,775
Oshkosh Truck Corp.	9,500		484,785
Precision Castparts Corp.	20,800		944,528

			2,578,088

Insurance — 3.8%
Allmerica Financial Corp.(a)	13,300		409,241
Arch Capital Group Ltd. (Bermuda)(a)	9,900		394,614
Commerce Group, Inc.	17,300		683,350
Fidelity National Financial, Inc.	44,375		1,720,862
HCC Insurance Holdings, Inc.	30,300		963,540
Markel Corp.(a)	6,300		1,597,113
Penn-America Group, Inc.	29,050		385,494
Philadelphia Consolidated Holding Corp.(a)	6,200		302,746
Protective Life Corp.	18,400		622,656
StanCorp Financial Group, Inc.	14,200		892,896
UICI(a)	73,900		981,392
Zenith National Insurance Corp.	16,000		520,800

			9,474,704

Leisure — 1.2%
Brunswick Corp.	30,100		958,083
International Speedway Corp. (Class “A” Stock)	18,700		835,142
Mandalay Resort Group	13,100		585,832
MarineMax, Inc.(a)	35,400		687,822

			3,066,879

Machinery — 1.1%
AGCO Corp.(a)	36,600		737,124
Albany International Corp. (Class “A” Stock)	13,300		450,870
Astec Industries, Inc.(a)	72,200		885,894
IDEX Corp.	15,800		657,122

			2,731,010

Media — 3.0%
Belo Corp. (Class “A” Stock)	41,500		1,176,110
Cablevision Systems New York Group, Inc. (Class “A” Stock)(a)	57,500		1,344,925
Cumulus Media, Inc. (Class “A” Stock)(a)	31,400		690,800
E.W. Scripps Co. (Class “A” Stock)	11,400		1,073,196


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Media (cont’d.)
Emmis Communications Corp. (Class “A” Stock)(a)	58,600	$	1,585,130
Entercom Communications Corp.(a)	8,900		471,344
Radio One, Inc. (Class “D” Stock)(a)	67,800		1,308,540

			7,650,045

Mineral Resources — 0.8%
Phelps Dodge Corp.(a)	26,000		1,978,340

Mining — 0.2%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)	11,700		492,921

Networking — 0.6%
3Com Corp.(a)	31,500		257,355
Networks Associates, Inc.(a)	30,600		460,224
Quest Software, Inc.(a)	52,400		744,080

			1,461,659

Office Equipment & Supplies — 0.3%
IKON Office Solutions, Inc.	55,700		660,602

Oil Exploration & Production — 2.9%
PetroKazakhstan, Inc. (Class “A” Stock) (Canada)(a)	66,300		1,492,413
Pioneer Natural Resources Co.(a)	39,500		1,261,235
Pogo Producing Co.	23,000		1,110,900
Pride International, Inc.(a)	46,900		874,216
Southwestern Energy Co.(a)	21,700		518,630
Spinnaker Exploration Co.(a)	16,400		529,228
XTO Energy, Inc.	57,166		1,617,798

			7,404,420

Oil & Gas Services — 2.2%
Cross Timbers Royalty Trusts	290		8,271
KeySpan Corp.	18,700		688,160
Oceaneering International, Inc.(a)	8,400		235,200
Premcor, Inc.(a)	27,700		720,200
Smith International, Inc.(a)	9,000		373,680
Southern Union Co.(a)	56,200		1,034,080
Tidewater, Inc.	11,600		346,608
Universal Compression Holdings, Inc.(a)	25,000		654,000
Valero Energy Corp.	20,400		945,336
Varco International, Inc.(a)	26,400		544,632

			5,550,167

Paper & Forest Products — 0.4%
Bowater, Inc.	22,200		1,028,082

Precious Metals — 0.2%
Agnico-Eagle Mines, Ltd. (Canada)	7,300		88,111
Royal Gold, Inc.	23,500		491,855

			579,966

Printing & Publishing — 0.7%
Marvel Enterprises, Inc.(a)	16,900		491,959
Playboy Enterprises, Inc. (Class “A” Stock)(a)	76,100		1,229,776

			1,721,735

Real Estate Investment Trust — 9.9%
Acadia Realty Trust	53,700		671,250
Alexandria Real Estate Equities, Inc.	18,500		1,071,150

SEE NOTES TO FINANCIAL STATEMENTS.

B88




		*SP SMALL/MID CAP VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS		Value (Note 2)
(Continued)	Shares	Value (Note 2)
Real Estate Investment Trust (cont’d.)
Apartment Investment & Management Co. (Class “A” Stock)	14,600	$	503,700
Avalonbay Communities, Inc.	26,700		1,276,260
Boston Properties, Inc.	17,300		833,687
Camden Property Trust	23,200		1,027,760
Capital Automotive REIT	21,300		681,600
CarrAmerica Realty Corp.	37,900		1,128,662
Catellus Development Corp.	28,125		678,375
CBL & Associates Properties, Inc.	9,000		508,500
CenterPoint Properties Corp.	15,900		1,190,910
Duke Realty Corp.	16,100		499,100
Gables Residential Trust	32,400		1,125,576
General Growth Properties, Inc.	28,300		785,325
Health Care REIT, Inc.	33,500		1,206,000
Highwoods Properties, Inc.	43,100		1,094,740
Home Properties of New York, Inc.	22,800		920,892
Macerich Co.	26,500		1,179,250
Manufactured Home Communities, Inc.	24,100		907,365
Pan Pacific Retail Properties, Inc.	20,500		976,825
Reckson Associates Realty Corp.	61,300		1,489,590
SL Green Realty Corp.	17,300		710,165
The Mills Corp.	23,800		1,047,200
Ventas, Inc.	49,200		1,082,400
Vornado Realty Trust	19,000		1,040,250
Weingarten Realty Investors	25,500		1,130,925

			24,767,457

Restaurants — 1.0%
Applebee’s International, Inc.	8,700		341,649
Darden Restaurants, Inc.	19,200		403,968
Jack in the Box, Inc.(a)	8,600		183,696
Outback Steakhouse, Inc.	15,400		680,834
RARE Hospitality International, Inc.(a)	17,300		422,812
Wendy’s International, Inc.	13,500		529,740

			2,562,699

Retail — 4.1%
Aeropostale, Inc.(a)	27,700		759,534
Big Lots, Inc.(a)	47,700		677,817
BJ’s Wholesale Club, Inc.(a)	29,200		670,432
Charming Shoppes, Inc.(a)	66,400		358,560
Christopher & Banks Corp.	19,850		387,670
Coldwater Creek, Inc.(a)	6,875		75,625
Finish Line, Inc. (Class “A” Stock)(a)	28,000		839,160
Foot Locker, Inc.	47,500		1,113,875
Linens ‘n Things, Inc.(a)	15,800		475,264
Nordstrom, Inc.	34,600		1,186,780
Pacific Sunwear of California, Inc.(a)	20,700		437,184
PETsMART, Inc.	20,300		483,140


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Retail (cont’d.)
Regis Corp.		12,600	$	497,952
Saks, Inc.(a)		74,800		1,124,992
Select Comfort Corp.(a)		29,900		740,324
Whole Foods Market, Inc.		7,000		469,910

				10,298,219

Semiconductors — 1.3%
Advanced Micro Devices, Inc.(a)		29,400		438,060
Amphenol Corp. (Class “A” Stock)(a)		13,700		875,841
Cree, Inc.(a)		17,800		314,882
Intersil Corp. (Class “A” Stock)		33,000		820,050
Photronics, Inc.(a)		21,300		424,296
SBS Technologies, Inc.(a)		20,100		295,671

				3,168,800

Telecommunications — 3.2%
Avaya, Inc.(a)		126,100		1,631,734
Citizens Communications Co.(a)		83,700		1,039,554
Comverse Technology, Inc.(a)		63,000		1,108,170
Harris Corp.		16,500		626,175
NTL, Inc.(a)		32,849		2,291,218
Scientific-Atlanta, Inc.		46,700		1,274,910
Triton PCS Holdings, Inc.(a)		24,500		136,710

				8,108,471

Transportation — 1.3%
Alexander & Baldwin, Inc.		31,700		1,067,973
CNF, Inc.		14,000		474,600
Offshore Logistics, Inc.(a)		24,800		608,096
Ryder System, Inc.		12,000		409,800
Teekay Shipping Corp. (Bahamas)		13,200		752,796

				3,313,265

Water Utility — 0.7%
Philadelphia Suburban Corp.		76,375		1,687,887

TOTAL LONG-TERM INVESTMENTS (cost $211,683,812)				247,549,491

	Principal Amount (000)
SHORT-TERM INVESTMENT — 1.8%
Repurchase Agreement
State Street Bank & Trust Company, 0.50%, 1/02/04(b) (cost $4,417,990)	$	4,418		4,417,990

TOTAL INVESTMENTS — 100.6% (cost $216,101,802; Note 6)				251,967,481
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.6)%				(1,392,382	)

NET ASSETS — 100%			$	250,575,099

SEE NOTES TO FINANCIAL STATEMENTS.

B89

The following abbreviation is used in portfolio description:


REIT		Real Estate Investment Trust

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $4,418,113 due 1/2/04. The value of the collateral including accrued interest was $4,507,938. Collateralized by United States Treasury or federal agency obligations.




		*SP STRATEGIC PARTNERS FOCUSED GROWTH PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.3%		Value (Note 2)
COMMON STOCKS	Shares	Value (Note 2)
Biotechnology — 6.9%
Amgen, Inc.(a)	22,600	$	1,396,680
Genentech, Inc.(a)	11,400		1,066,698

			2,463,378

Capital Markets — 5.1%
Merrill Lynch & Co., Inc.	15,900		932,535
State Street Corp.	17,000		885,360

			1,817,895

Communications Equipment — 5.0%
Cisco Systems, Inc.(a)	74,500		1,809,605

Computers & Peripherals — 2.5%
Dell, Inc.(a)	26,000		882,960

Consumer Finance — 2.9%
American Express Co.	21,500		1,036,945

Diversified Financial Services — 9.1%
Citigroup, Inc.	30,900		1,499,886
Federal Home Loan Mortgage Corp.	8,700		653,022
MBNA Corp.	20,100		499,485
Morgan Stanley	10,700		619,209

			3,271,602

Electronic Equipment & Instruments — 3.1%
Agilent Technologies, Inc.(a)	37,700		1,102,348

Energy Equipment & Services — 2.9%
BJ Services Co.(a)	29,100		1,044,690

Health Care Equipment & Supplies — 1.8%
Medtronic, Inc.	13,100		636,791

Health Care Providers & Services — 2.5%
UnitedHealth Group, Inc.	15,400		895,972

Hotels, Restaurants & Leisure — 2.6%
Starbucks Corp.(a)	28,800		952,128

Industrial Conglomerates — 4.8%
General Electric Co.	55,500		1,719,390

Insurance — 2.8%
American International Group, Inc.	15,100		1,000,828

Internet & Catalog Retail — 2.1%
eBay, Inc.(a)	11,700		755,703

Internet Services — 1.5%
Yahoo!, Inc.(a)	11,700		528,489

Media — 10.5%
Comcast Corp. (Special Class “A” Stock)(a)	22,100		691,288
Univision Communications, Inc. (Class “A” Stock)(a)	26,300		1,043,847
Viacom, Inc. (Class “B” Stock)	45,700		2,028,166

			3,763,301


COMMON STOCKS			Value (Note 2)
(Continued)	Shares		Value (Note 2)
Multi-line Retail — 1.9%
Wal-Mart Stores, Inc.		12,900	$	684,345

Pharmaceuticals — 3.7%
Alcon, Inc.		10,600		641,724
Pfizer, Inc.		19,200		678,336

				1,320,060

Semiconductors & Semiconductor Equipment — 10.1%
Intel Corp.		52,700		1,696,940
International Rectifier Corp.(a)		10,400		513,864
Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan)(a)		55,528		568,607
Texas Instruments, Inc.		29,000		852,020

				3,631,431

Software — 8.1%
Electronic Arts, Inc.(a)		20,200		965,156
Microsoft Corp.		71,200		1,960,848

				2,926,004

Specialty Retail — 7.4%
Bed Bath & Beyond, Inc.(a)		22,000		953,700
Lowe’s Cos., Inc.		14,000		775,460
Tiffany & Co.		20,900		944,680

				2,673,840

TOTAL LONG-TERM INVESTMENTS (cost $30,447,846)				34,917,705

SHORT-TERM INVESTMENTS — 3.3%
Mutual Fund — 1.9%
Dryden Core Investment Fund—Taxable Money Market Series (cost $668,083; Note 4)		668,083		668,083


	Principal Amount (000)
Repurchase Agreement — 1.4%
State Street Bank & Trust Co., 0.50%, 1/2/04(b) (cost $516,489)	$	516		516,489

TOTAL SHORT-TERM INVESTMENTS (cost $1,184,572)				1,184,572

TOTAL INVESTMENTS — 100.6% (cost $31,632,418)				36,102,277
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.6)%				(224,714	)

NET ASSETS — 100%			$	35,877,563

SEE NOTES TO FINANCIAL STATEMENTS.

B90

The following abbreviation is used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	State Street Bank & Trust Company Repurchase Agreement, repurchase price $516,503 due 1/2/04. The value of the collateral including accrued interest was $535,863. Collateralized by United States Treasury or Federal Agency obligations.




		*STOCK INDEX PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 97.0%
COMMON STOCKS	Shares	Value (Note 2)

Advertising — 0.2%
Omnicom Group, Inc.(b)	52,700	$	4,602,291

Aerospace — 1.5%
Boeing Co.	231,036		9,735,857
General Dynamics Corp.	56,200		5,079,918
Lockheed Martin Corp.	126,998		6,527,697
Northrop Grumman Corp.	51,163		4,891,183
Raytheon Co.	116,918		3,512,217
Rockwell Automation, Inc.(b)	53,300		1,897,480
Rockwell Collins, Inc.	52,500		1,576,575
United Technologies Corp.	129,500		12,272,715

			45,493,642

Airlines — 0.1%
Delta Airlines, Inc.	39,000		460,590
Southwest Airlines Co.	210,837		3,402,909

			3,863,499

Apparel — 0.2%
Jones Apparel Group, Inc.	37,500		1,321,125
Nike, Inc. (Class “B” Stock)(b)	72,000		4,929,120
Reebok International, Ltd.(b)	17,000		668,440

			6,918,685

Autos – Cars & Trucks — 1.1%
Cummins Engine Co., Inc.	12,400		606,856
Dana Corp.	37,894		695,355
Delphi Automotive Systems Corp.	162,044		1,654,469
Ford Motor Co.(b)	502,045		8,032,720
General Motors Corp.(b)	154,700		8,260,980
Genuine Parts Co.(b)	49,225		1,634,270
Harley-Davidson, Inc.(b)	81,700		3,883,201
Johnson Controls, Inc.	25,200		2,926,224
Navistar International Corp.(a)(b)	18,900		905,121
PACCAR, Inc.	32,290		2,748,525
Visteon Corp.	42,964		447,255

			31,794,976

Banks and Savings & Loans — 6.2%
AmSouth Bancorporation(b)	95,500		2,339,750
Bank of New York Co., Inc.	216,500		7,170,480
Bank One Corp.	313,745		14,303,635
BankAmerica Corp.(b)	414,144		33,309,602
Capital One Financial Corp.(b)	63,000		3,861,270
Charter One Financial, Inc.	60,373		2,085,887
Comerica, Inc.(b)	50,950		2,856,257
Fifth Third Bancorp(b)	159,549		9,429,346
First Tennessee National Corp.(b)	35,900		1,583,190
Golden West Financial Corp.	43,400		4,478,446
Huntington Bancshares, Inc.	66,875		1,504,688
KeyCorp	115,900		3,398,188
Mellon Financial Corp.	116,100		3,727,971
National City Corp.	172,800		5,864,832
North Fork Bancorporation, Inc.(b)	45,700		1,849,479
Northern Trust Corp.(b)	59,100		2,743,422
PNC Financial Services Group(b)	79,900		4,372,927
Providian Financial Corp.(a)	86,200		1,003,368
SouthTrust Corp.	94,200		3,083,166
State Street Corp.(b)	92,100		4,796,568
Suntrust Banks, Inc.	77,900		5,569,850


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Banks and Savings & Loans (cont’d.)
U.S. Bancorp(b)	535,081	$	15,934,712
Union Planters Corp.	53,600		1,687,864
Wachovia Corp.	370,278		17,251,252
Wells Fargo & Co.(b)	465,960		27,440,384
Zions Bancorporation	23,400		1,435,122

			183,081,656

Chemicals — 1.2%
Air Products & Chemicals, Inc.	60,900		3,217,347
Dow Chemical Co.(b)	254,361		10,573,787
Du Pont (E.I.) de Nemours & Co.(b)	275,091		12,623,926
Eastman Chemical Co.(b)	22,400		885,472
Engelhard Corp.	32,375		969,631
Great Lakes Chemical Corp.(b)	13,500		367,065
Hercules, Inc.(a)	37,400		456,280
Praxair, Inc.	89,400		3,415,080
Rohm & Haas Co.	60,600		2,588,226
Sigma-Aldrich Corp.(b)	21,200		1,212,216

			36,309,030

Commercial Services — 0.9%
Cendant Corp.(a)(b)	288,018		6,414,161
Cintas Corp.(b)	50,300		2,521,539
Concord EFS, Inc.(a)(b)	143,300		2,126,572
Convergys Corp.(a)	47,900		836,334
Deluxe Corp.	14,100		582,753
eBay, Inc.(a)(b)	176,500		11,400,135
Fiserv, Inc.(a)	51,800		2,046,618
Monster Worldwide, Inc.(a)(b)	35,100		770,796

			26,698,908

Computers — 3.3%
Apple Computer, Inc.(a)	101,200		2,162,644
Citrix Systems, Inc.(a)	46,800		992,628
Comverse Technology, Inc.(a)(b)	52,000		914,680
Dell, Inc.(a)	715,200		24,288,192
Hewlett-Packard Co.(b)	845,916		19,430,690
International Business Machines Corp.	481,500		44,625,420
Sun Microsystems, Inc.(a)	882,900		3,964,221

			96,378,475

Computer Services — 7.6%
Adobe Systems, Inc.(b)	62,600		2,460,180
Autodesk, Inc.	33,600		825,888
Automatic Data Processing, Inc.	165,500		6,555,455
Avaya, Inc.(a)	111,908		1,448,090
BMC Software, Inc.(a)	67,600		1,260,740
Cisco Systems, Inc.(a)	1,928,400		46,840,836
Computer Associates International, Inc.(b)	159,243		4,353,704
Computer Sciences Corp.(a)(b)	49,200		2,176,116
Compuware Corp.(a)	108,600		655,944
EMC Corp.(a)	652,074		8,424,796
First Data Corp.(b)	208,000		8,546,720
Gateway, Inc.(a)	106,800		491,280
Intuit, Inc.(a)(b)	57,200		3,026,452
Lexmark International, Inc.(a)	36,314		2,855,733

SEE NOTES TO FINANCIAL STATEMENTS.

B91




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Computer Services (cont’d.)
Mercury Interactive Corp.(a)(b)	25,000	$	1,216,000
Micron Technology, Inc.(a)(b)	170,700		2,299,329
Microsoft Corp.	3,005,100		82,760,454
NCR Corp.(a)(b)	25,900		1,004,920
Network Appliance, Inc.(a)(b)	92,400		1,896,972
Novell, Inc.(a)(b)	106,100		1,116,172
NVIDIA Corp.(a)(b)	44,000		1,023,000
Oracle Corp.(a)	1,450,320		19,144,224
Parametric Technology Corp.(a)	97,000		382,180
Peoplesoft, Inc.(a)	97,000		2,211,600
Siebel Systems, Inc.(a)	134,900		1,871,063
SunGuard Data Systems, Inc.(a)	75,500		2,092,105
Symantec Corp.(a)(b)	84,200		2,917,530
Symbol Technologies, Inc.	67,400		1,138,386
Unisys Corp.(a)	95,000		1,410,750
VERITAS Software Corp.(a)(b)	115,559		4,294,172
Yahoo!, Inc.(a)(b)	179,600		8,112,532

			224,813,323

Construction — 0.2%
Centex Corp.(b)	16,500		1,776,225
Fluor Corp.(b)	23,500		931,540
KB HOME	14,166		1,027,318
Pulte Corp.(b)	16,100		1,507,282
Vulcan Materials Co.(b)	28,200		1,341,474

			6,583,839

Consumer Products
Tupperware Corp.	22,300		386,682

Containers — 0.1%
Ball Corp.	14,100		839,937
Bemis Co., Inc.	16,100		805,000
Pactiv Corp.(a)	43,900		1,049,210

			2,694,147

Cosmetics & Soaps — 2.2%
Alberto-Culver Co. (Class “B” Stock)	15,200		958,816
Avon Products, Inc.	64,300		4,339,607
Clorox Co.(b)	59,500		2,889,320
Colgate-Palmolive Co.	147,100		7,362,355
Gillette Co.	291,200		10,695,776
International Flavors & Fragrances, Inc.	29,400		1,026,648
Procter & Gamble Co.(b)	359,804		35,937,223

			63,209,745

Diversified Consumer Products — 1.1%
Altria Group, Inc.	562,700		30,622,134
Eastman Kodak Co.(b)	84,600		2,171,682

			32,793,816

Diversified Manufacturing Operations — 3.1%
American Standard Cos., Inc.(a)	20,900		2,104,630
Cooper Industries, Ltd. (Class “A” Stock)	25,000		1,448,250
General Electric Co.	2,783,700		86,239,026

			89,791,906


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Diversified Office Equipment — 0.3%
Avery Dennison Corp.	32,000	$	1,792,640
Pitney Bowes, Inc.	66,900		2,717,478
Xerox Corp.(a)(b)	215,792		2,977,930

			7,488,048

Diversified Operations — 0.1%
Corning, Inc.(a)(b)	362,900		3,785,047

Drugs & Medical Supplies — 10.4%
Abbott Laboratories	434,300		20,238,380
Allergan, Inc.	34,900		2,680,669
AmerisourceBergen Corp.(b)	31,200		1,751,880
Bard, (C.R.), Inc.(b)	13,300		1,080,625
Bausch & Lomb, Inc.(b)	17,100		887,490
Baxter International, Inc.(b)	171,800		5,243,336
Becton Dickinson & Co.	72,600		2,986,764
Biogen Idec, Inc.(a)(b)	88,925		3,270,661
Biomet, Inc.	71,225		2,593,302
Boston Scientific Corp.(a)(b)	228,600		8,403,336
Bristol-Myers Squibb Co.	538,460		15,399,956
Cardinal Health, Inc.(b)	122,775		7,508,919
Genzyme Corp.(a)(b)	62,300		3,073,882
Guidant Corp.	83,700		5,038,740
Johnson & Johnson	827,671		42,757,484
King Pharmaceuticals, Inc.(a)(b)	71,633		1,093,120
Lilly (Eli) & Co.	310,700		21,851,531
Medtronic, Inc.(b)	338,700		16,464,207
Merck & Co., Inc.	620,200		28,653,240
Pfizer, Inc.	2,130,208		75,260,249
Quest Diagnostics, Inc.(b)	30,300		2,215,233
Schering-Plough Corp.	407,200		7,081,208
St. Jude Medical, Inc.(a)(b)	50,700		3,110,445
Stryker Corp.	55,000		4,675,550
Watson Pharmaceuticals, Inc.(a)	31,400		1,444,400
Wyeth	368,600		15,647,070
Zimmer Holdings, Inc.(a)	63,486		4,469,414

			304,881,091

Education — 0.1%
Apollo Group, Inc. (Class “A” Stock)(a)(b)	47,700		3,243,600

Electrical Services — 0.2%
American Power Conversion	57,700		1,410,765
Power-One, Inc.(a)	20,000		216,600
TXU Corp.(b)	87,606		2,078,014
Xcel Energy, Inc.	109,495		1,859,225

			5,564,604

Electronics — 5.0%
Advanced Micro Devices, Inc.(a)(b)	108,200		1,612,180
Altera Corp.(a)	108,500		2,462,950
Analog Devices, Inc.	99,800		4,555,870
Applied Materials, Inc.(a)	459,300		10,311,285
Applied Micro Circuits Corp.(a)	97,000		580,060
Broadcom Corp.(a)(b)	79,800		2,720,382
Electronic Arts, Inc.(a)(b)	80,400		3,841,512
Electronic Data Systems Corp.(b)	128,300		3,148,482
Emerson Electric Co.	115,700		7,491,575

SEE NOTES TO FINANCIAL STATEMENTS.

B92




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Electronics (cont’d.)
Intel Corp.(b)	1,809,600	$	58,269,120
Jabil Circuit, Inc.(a)(b)	54,600		1,545,180
JDS Uniphase Corp.(a)(b)	410,100		1,496,865
KLA-Tencor Corp.(a)	51,400		3,015,638
Linear Technology Corp.	88,100		3,706,367
LSI Logic Corp.(a)(b)	110,800		982,796
Maxim Integrated Products, Inc.	89,800		4,472,040
Molex, Inc.(b)	50,500		1,761,945
National Semiconductor Corp.(a)	50,800		2,002,028
Novellus Systems, Inc.(a)(b)	40,000		1,682,000
Perkin Elmer, Inc.	36,000		614,520
Pinnacle West Capital Corp.	26,000		1,040,520
PMC-Sierra, Inc.(a)(b)	48,800		983,320
PPL Corp.(b)	47,000		2,056,250
QLogic Corp.(a)(b)	25,900		1,336,440
RadioShack Corp.(b)	48,660		1,492,889
Sanmina Corp.(a)	150,600		1,899,066
Solectron Corp.(a)(b)	247,000		1,459,770
Tektronix, Inc.	22,700		717,320
Teradyne, Inc.(a)(b)	57,000		1,450,650
Texas Instruments, Inc.	478,200		14,049,516
Thomas & Betts Corp.(b)	20,800		476,112
Waters Corp.(a)	38,500		1,276,660
Xilinx, Inc.(a)(b)	94,900		3,676,426

			148,187,734

Financial Services — 9.0%
Ambac Financial Group, Inc.	30,000		2,081,700
American Express Co.	360,200		17,372,446
Bear Stearns Cos., Inc.(b)	27,310		2,183,434
Citigroup, Inc.	1,433,576		69,585,779
Countrywide Credit Industries, Inc.(b)	50,267		3,812,727
Equifax, Inc.(b)	41,300		1,011,850
Fannie Mae	272,100		20,423,826
Federated Investors, Inc. (Class “B” Stock)	26,500		778,040
FleetBoston Financial Corp.	290,766		12,691,936
Franklin Resources, Inc.(b)	67,800		3,529,668
Freddie Mac	191,700		11,179,944
Goldman Sachs Group, Inc.(b)	132,200		13,052,106
H&R Block, Inc.	51,600		2,857,092
J.P. Morgan Chase & Co.	564,066		20,718,144
Janus Capital Group, Inc.	62,600		1,027,266
Lehman Brothers Holdings, Inc.	75,200		5,806,944
Marshall & Ilsley Corp.	62,400		2,386,800
MBNA Corp.	355,652		8,837,952
Merrill Lynch & Co., Inc.	259,300		15,207,945
Moody’s Corp.	41,760		2,528,568
Morgan Stanley(b)	302,310		17,494,680
Paychex, Inc.(b)	103,650		3,855,780
Regions Financial Corp.	62,800		2,336,160
Schwab (Charles) Corp.(b)	374,100		4,429,344
SLM Corp.	128,100		4,826,808
Synovus Financial Corp.(b)	85,100		2,461,092
T. Rowe Price Group, Inc.(b)	36,000		1,706,760
Washington Mutual, Inc.	257,122		10,315,735

			264,500,526


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Food & Beverage — 4.1%
Adolph Coors Co.(b)	10,800	$	605,880
Anheuser-Busch Cos., Inc.	232,200		12,232,296
Archer-Daniels-Midland Co.	181,938		2,769,096
Brown-Forman Corp. (Class “B” Stock)	16,300		1,523,235
Campbell Soup Co.(b)	111,800		2,996,240
Coca-Cola Co.	684,200		34,723,150
Coca-Cola Enterprises, Inc.	122,800		2,685,636
ConAgra Foods, Inc.	147,100		3,881,969
General Mills, Inc.	103,400		4,684,020
Heinz (H.J.) & Co.	98,850		3,601,106
Hershey Foods Corp.	36,500		2,810,135
Kellogg Co.	114,400		4,356,352
McCormick & Co., Inc.(b)	36,300		1,092,630
Monsanto Co.(b)	76,398		2,198,734
Pepsi Bottling Group, Inc.	79,200		1,915,056
PepsiCo, Inc.	480,940		22,421,423
Sara Lee Corp.	215,800		4,685,018
Sysco Corp.(b)	178,700		6,653,001
Wrigley (William) Jr. Co.	62,800		3,529,988

			119,364,965

Forest Products — 0.6%
Boise Cascade Corp.	19,886		653,454
Georgia-Pacific Corp.	68,039		2,086,756
International Paper Co.	131,467		5,667,542
Louisiana-Pacific Corp.(a)	22,000		393,360
MeadWestvaco Corp.	57,289		1,704,348
Plum Creek Timber Co., Inc.(b)	53,300		1,622,985
Temple-Inland, Inc.	16,000		1,002,720
Weyerhaeuser Co.(b)	61,300		3,923,200

			17,054,365

Gas Pipelines — 0.2%
Cinergy Corp.	48,339		1,876,037
Peoples Energy Corp.(b)	11,400		479,256
Sempra Energy(b)	63,054		1,895,403
Williams Cos., Inc.(b)	157,100		1,542,722

			5,793,418

Hospitals/Healthcare Management — 2.6%
Aetna, Inc.(b)	43,112		2,913,509
Agilent Technologies, Inc.(a)	127,913		3,740,176
Amgen, Inc.(a)	357,164		22,072,735
Anthem, Inc.(a)(b)	40,000		3,000,000
Applera Corp.-Applied Biosystems Group(b)	60,000		1,242,600
Chiron Corp.(a)(b)	51,600		2,940,684
Express Scripts, Inc.(a)(b)	21,200		1,408,316
Forest Laboratories, Inc.(a)	100,800		6,229,440
HCA, Inc.(b)	142,598		6,126,010
Health Management Associates, Inc. (Class “A” Stock)(b)	66,300		1,591,200
Humana, Inc.(a)	46,100		1,053,385
IMS Health, Inc.	69,020		1,715,837
Manor Care, Inc.(b)	22,950		793,382
McKesson Corp.(b)	81,107		2,608,401
Medco Health Solutions, Inc.(a)	74,796		2,542,316

SEE NOTES TO FINANCIAL STATEMENTS.

B93




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Hospitals/Healthcare Management (cont’d.)
MedImmune, Inc.(a)	68,200	$	1,732,280
Tenet Healthcare Corp.(a)	127,100		2,039,955
UnitedHealth Group, Inc.(b)	167,000		9,716,060
Wellpoint Health Networks, Inc.(a)	40,800		3,957,192

			77,423,478

Household Products & Personal Care — 0.3%
Kimberly-Clark Corp.	143,188		8,460,979
Leggett & Platt, Inc.(b)	56,400		1,219,932

			9,680,911

Housing Related — 0.3%
Masco Corp.(b)	135,500		3,714,055
Maytag Corp.	21,800		607,130
Newell Rubbermaid, Inc.	72,249		1,645,110
Stanley Works	25,800		977,046
Whirlpool Corp.(b)	19,300		1,402,145

			8,345,486

Human Resources
Robert Half International, Inc.(a)(b)	52,300		1,220,682

Insurance — 4.4%
ACE, Ltd.	75,200		3,114,784
AFLAC, Inc.	141,800		5,130,324
Allstate Corp.	193,688		8,332,458
American International Group, Inc.	724,187		47,999,114
Aon Corp.(b)	90,425		2,164,775
Chubb Corp.(b)	53,400		3,636,540
CIGNA Corp.	41,000		2,357,500
Cincinnati Financial Corp.	43,200		1,809,216
Hartford Financial Services Group, Inc.(b)	80,400		4,746,012
Jefferson-Pilot Corp.	38,418		1,945,872
John Hancock Financial Services, Inc.	79,300		2,973,750
Lincoln National Corp.	47,700		1,925,649
Loews Corp.	51,800		2,561,510
Marsh & McLennan Cos., Inc.(b)	148,600		7,116,454
MBIA, Inc.(b)	41,650		2,466,929
MetLife, Inc.	209,200		7,043,764
MGIC Investment Corp.(b)	27,900		1,588,626
Principal Financial Group, Inc.	92,000		3,042,440
Progressive Corp.	60,700		5,073,913
SAFECO Corp.(b)	37,400		1,455,982
St. Paul Cos., Inc.	63,410		2,514,206
Torchmark Corp.	31,000		1,411,740
Travelers Property Casualty Corp. (Class “B” Stock)	281,469		4,776,529
UnumProvident Corp.(b)	80,456		1,268,791
XL Capital, Ltd. (Bermuda) (Class “A” Stock)	39,700		3,078,735

			129,535,613

Leisure — 1.0%
Brunswick Corp.	26,400		840,312
Carnival Corp.(b)	174,600		6,936,858
Disney (Walt) Co.(b)	564,501		13,169,808


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Leisure (cont’d.)
Harrah’s Entertainment, Inc.	29,750	$	1,480,658
Hilton Hotels Corp.(b)	104,800		1,795,224
Marriott International, Inc. (Class “A” Stock)	63,600		2,938,320
Sabre Group Holdings, Inc. (Class “A” Stock)	42,419		915,826
Starwood Hotels & Resorts Worldwide, Inc.	56,800		2,043,096

			30,120,102

Machinery — 0.8%
Caterpillar, Inc.(b)	94,400		7,837,088
Deere & Co.(b)	67,400		4,384,370
Dover Corp.	58,200		2,313,450
Eaton Corp.	21,600		2,332,368
Ingersoll-Rand Co. (Class “A” Stock)	46,250		3,139,450
Parker Hannifin Corp.(b)	34,425		2,048,287
Snap-on, Inc.	14,300		461,032
Thermo Electron Corp.(a)	46,400		1,169,280

			23,685,325

Media — 3.4%
Clear Channel Communications, Inc.	172,500		8,078,175
Comcast Corp. (Class “A” Stock)(a)	626,530		20,594,041
Dow Jones & Co., Inc.(b)	22,800		1,136,580
Gannett Co., Inc.	75,600		6,740,496
Interpublic Group of Cos., Inc.(a)(b)	116,200		1,812,720
Knight-Ridder, Inc.(b)	23,000		1,779,510
McGraw Hill, Inc.	54,200		3,789,664
Meredith Corp.(b)	13,800		673,578
New York Times Co. (Class “A” Stock)	41,500		1,983,285
R.R. Donnelley & Sons, Co.(b)	31,200		940,680
Time Warner, Inc.(a)(b)	1,252,820		22,538,232
Tribune Co.	85,200		4,396,320
Univision Communications, Inc. (Class “A” Stock)(a)	91,500		3,631,635
Viacom, Inc. (Class “B” Stock)(b)	486,136		21,574,716

			99,669,632

Metals – Ferrous — 0.1%
Allegheny Technologies, Inc.	28,940		382,587
Nucor Corp.	21,800		1,220,800
United States Steel Corp.(b)	31,540		1,104,531
Worthington Industries, Inc.(b)	24,000		432,720

			3,140,638

Metals – Non Ferrous — 0.3%
Alcoa, Inc.(b)	237,776		9,035,488

Mineral Resources — 0.2%
Burlington Resources, Inc.(b)	57,417		3,179,753
Phelps Dodge Corp.(a)(b)	23,528		1,790,246

			4,969,999

SEE NOTES TO FINANCIAL STATEMENTS.

B94




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Miscellaneous – Basic Industry — 2.1%
AES Corp.(a)(b)	161,700	$	1,526,448
BB&T Corp.(b)	152,400		5,888,736
Crane Co.	14,325		440,351
Danaher Corp.(b)	41,400		3,798,450
Ecolab, Inc.	73,800		2,019,906
Fortune Brands, Inc.	41,600		2,973,984
Honeywell, Inc.	241,050		8,058,302
Illinois Tool Works, Inc.	85,200		7,149,132
International Game Technology(b)	98,000		3,498,600
ITT Industries, Inc.	25,000		1,855,250
Millipore Corp.(a)(b)	14,200		611,310
Pall Corp.(b)	36,000		965,880
PPG Industries, Inc.	46,600		2,983,332
Sealed Air Corp.(a)	22,910		1,240,347
Textron, Inc.	35,100		2,002,806
Tyco International, Ltd.(b)	550,743		14,594,689
W.W. Grainger, Inc.	23,200		1,099,448

			60,706,971

Miscellaneous – Consumer Growth/Staple — 0.7%
3M Co.	218,000		18,536,540
American Greetings Corp. (Class “A” Stock)(a)(b)	20,800		454,896
Black & Decker Corp.	21,200		1,045,584

			20,037,020

Oil & Gas — 4.0%
Amerada Hess Corp.	25,500		1,355,835
Anadarko Petroleum Corp.	68,063		3,471,893
Ashland, Inc.	18,600		819,516
ChevronTexaco Corp.(b)	296,361		25,602,627
El Paso Corp.(b)	156,311		1,280,187
EOG Resources, Inc.	29,500		1,362,015
Exxon Mobil Corp.	1,846,170		75,692,970
Kerr-McGee Corp.	28,126		1,307,578
Marathon Oil Corp.	86,300		2,855,667
NICOR, Inc.	14,200		483,368
Sunoco, Inc.	22,500		1,150,875
Unocal Corp.	71,200		2,622,296

			118,004,827

Oil & Gas Exploration/Production — 0.7%
ConocoPhillips	188,497		12,359,748
Devon Energy Corp.	63,400		3,630,284
Occidental Petroleum Corp.	102,800		4,342,272

			20,332,304

Oil & Gas Services — 1.1%
Apache Corp.(b)	44,425		3,602,868
Baker Hughes, Inc.	95,130		3,059,381
BJ Services Co.(a)	43,700		1,568,830
Halliburton Co.(b)	118,300		3,075,800
Kinder Morgan, Inc.	35,000		2,068,500
Nabors Industries, Ltd. (Barbados)(a)(b)	39,500		1,639,250
Noble Corp.(a)	40,600		1,452,668
PG&E Corp.(a)(b)	117,500		3,262,975
Rowan Cos., Inc.(a)(b)	28,700		664,979
Schlumberger, Ltd.	163,700		8,957,664
Transocean Sedco Forex, Inc.(a)(b)	85,033		2,041,642

			31,394,557


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Precious Metals — 0.3%
Freeport-McMoRan Copper & Gold, Inc. (Class “B” Stock)(b)	48,900	$	2,060,157
Newmont Mining Corp.	118,403		5,755,570

			7,815,727

Railroads — 0.4%
Burlington Northern Santa Fe Corp.	100,026		3,235,841
CSX Corp.	57,412		2,063,387
Norfolk Southern Corp.	110,500		2,613,325
Union Pacific Corp.(b)	71,700		4,981,716

			12,894,269

Real Estate Investment Trust — 0.4%
Apartment Investment & Management Co. (Class “A” Stock)	27,500		948,750
Equity Office Properties Trust	109,400		3,134,310
Equity Residential Properties Trust(b)	71,600		2,112,916
ProLogis	51,200		1,643,008
Simon Property Group, Inc.(b)	53,300		2,469,922

			10,308,906

Restaurants — 0.5%
Darden Restaurants, Inc.	50,250		1,057,260
McDonald’s Corp.	350,200		8,695,466
Wendy’s International, Inc.	30,700		1,204,668
Yum! Brands, Inc.(a)	82,400		2,834,560

			13,791,954

Retail — 6.6%
Albertson’s, Inc.(b)	97,944		2,218,432
AutoNation, Inc.(a)	79,500		1,460,415
AutoZone, Inc.(a)(b)	24,100		2,053,561
Bed Bath & Beyond, Inc.(a)	82,200		3,563,370
Best Buy Co., Inc.	89,450		4,672,868
Big Lots, Inc.(a)	35,200		500,192
Circuit City Stores, Inc.	66,200		670,606
Costco Wholesale Corp.(a)	126,532		4,704,460
CVS Corp.	110,000		3,973,200
Dillard’s, Inc. (Class “A” Stock)	25,750		423,845
Dollar General Corp.	90,203		1,893,361
Family Dollar Stores, Inc.	45,600		1,636,128
Federated Department Stores, Inc.(b)	51,100		2,408,343
Gap, Inc.(b)	244,287		5,669,901
Home Depot, Inc.	640,719		22,739,117
J.C. Penney Co., Inc.(b)	76,600		2,013,048
Kohl’s Corp.(a)(b)	93,700		4,210,878
Kroger Co.(a)(b)	213,600		3,953,736
Limited Brands	148,196		2,671,974
Liz Claiborne, Inc.	31,800		1,127,628
Lowe’s Cos., Inc.(b)	216,400		11,986,396
May Department Stores Co.(b)	79,600		2,313,972
Nordstrom, Inc.(b)	38,300		1,313,690
Office Depot, Inc.(a)	89,000		1,487,190
Safeway, Inc.(a)(b)	124,600		2,729,986
Sears, Roebuck & Co.(b)	68,800		3,129,712

SEE NOTES TO FINANCIAL STATEMENTS.

B95




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Retail (cont’d.)
Sherwin-Williams Co.	39,700	$	1,379,178
Staples, Inc.(a)(b)	136,800		3,734,640
Starbucks Corp.(a)	104,600		3,458,076
Supervalu, Inc.	39,000		1,115,010
Target Corp.(b)	251,368		9,652,531
Tiffany & Co.	39,300		1,776,360
TJX Cos., Inc.(b)	145,200		3,201,660
Toys ‘R’ Us, Inc.(a)	61,250		774,200
Wal-Mart Stores, Inc.	1,206,400		63,999,520
Walgreen Co.	288,000		10,477,440
Winn-Dixie Stores, Inc.(b)	36,900		367,155

			195,461,779

Rubber — 0.1%
B.F. Goodrich Co.	31,800		944,142
Cooper Tire & Rubber Co.	23,800		508,844
Goodyear Tire & Rubber Co.(a)	49,200		386,712

			1,839,698

Telecommunications — 4.3%
ADC Telecommunications, Inc.(a)	232,400		690,228
Alltel Corp.	87,800		4,089,724
Andrew Corp.(a)(b)	33,112		381,119
AT&T Corp.(b)	219,073		4,447,182
AT&T Wireless Services, Inc.(a)(b)	747,343		5,971,271
BellSouth Corp.	512,200		14,495,260
CenturyTel, Inc.(b)	40,100		1,308,062
CIENA Corp.(a)(b)	115,000		763,600
Citizens Communications Co.(a)(b)	83,000		1,030,860
Lucent Technologies, Inc.(a)(b)	1,120,305		3,181,666
Motorola, Inc.(b)	641,295		9,023,021
Nextel Communications, Inc. (Class “A” Stock)(a)(b)	305,900		8,583,554
QUALCOMM, Inc.(b)	220,100		11,869,993
Qwest Communications International, Inc.(a)(b)	473,947		2,047,451
SBC Communications, Inc.	925,774		24,134,928
Scientific-Atlanta, Inc.	46,800		1,277,640
Sprint Corp.(b)	245,700		4,034,394
Sprint Corp. (PCS Group)(a)(b)	286,200		1,608,444
Tellabs, Inc.(a)	116,000		977,880
Verizon Communications, Inc.	768,138		26,946,281

			126,862,558

Textiles
VF Corp.	27,536		1,190,657

Tobacco — 0.1%
R.J. Reynolds Tobacco Holdings, Inc.(b)	22,000		1,279,300
UST, Inc.(b)	48,900		1,745,241

			3,024,541

Toy Manufacturer — 0.1%
Hasbro, Inc.(b)	47,650		1,013,992
Mattel, Inc.(b)	120,281		2,317,815

			3,331,807


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Trucking & Shipping — 1.0%
FedEx Corp.	84,340	$	5,692,950
Ryder System, Inc.	17,600		601,040
United Parcel Service, Inc. (Class “B” Stock)(b)	312,100		23,267,055

			29,561,045

Utilities – Electric — 1.6%
Allegheny Energy, Inc.(a)	35,200		449,152
Ameren Corp.(b)	46,200		2,125,200
American Electric Power Co., Inc.	107,940		3,293,249
Calpine Corp.(a)(b)	95,000		456,950
CenterPoint Energy, Inc.(b)	90,610		878,011
CMS Energy Corp.(a)	43,100		367,212
Consolidated Edison, Inc.(b)	62,700		2,696,727
Constellation Energy Group	46,850		1,834,646
Dominion Resources, Inc.(b)	90,142		5,753,764
DTE Energy Co.(b)	48,700		1,918,780
Duke Energy Co.(b)	249,262		5,097,408
Edison International(b)	95,900		2,103,087
Entergy Corp.	63,200		3,610,616
FirstEnergy Corp.	91,236		3,211,507
FPL Group, Inc.(b)	50,700		3,316,794
Public Service Enterprise Group, Inc.(b)	63,700		2,790,060
Southern Co.	199,500		6,034,875
TECO Energy, Inc.(b)	43,700		629,717

			46,567,755

Utilities – Electric & Gas — 0.4%
Dynegy, Inc. (Class “A” Stock)(a)(b)	113,300		484,924
Exelon Corp.	90,875		6,030,465
KeySpan Corp.	43,400		1,597,120
NiSource, Inc.	73,000		1,601,620
Progress Energy, Inc.	65,214		2,951,586

			12,665,715

Waste Management — 0.2%
Allied Waste Industries, Inc.(a)(b)	69,000		957,720
Waste Management, Inc.	161,630		4,784,248

			5,741,968

TOTAL COMMON STOCKS (cost $2,202,576,118)			2,853,639,430

CONTINGENT VALUE OBLIGATION
Utilities — Electric & Gas
Progress Energy, Inc.(a)(e) (cost $17,640)	36,000		0

TOTAL LONG-TERM INVESTMENTS (cost $2,202,593,758)			2,853,639,430

SHORT-TERM INVESTMENTS — 26.1%
Mutual Fund — 25.9%
Dryden Core Investment Fund —Taxable Money Market Series (Note 4)(c)	762,416,165		762,416,165

SEE NOTES TO FINANCIAL STATEMENTS.

B96




		*STOCK INDEX PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


SHORT-TERM INVESTMENTS (Continued)	Principal Amount (000)	Value (Note 2)

U.S. Government Obligation — 0.2%
United States Treasury Bill(d)(f) 0.87%, 3/18/04	$5,500	$	5,489,736

TOTAL SHORT-TERM INVESTMENTS (cost $767,905,901)			767,905,901

TOTAL INVESTMENTS — 123.1% (cost $2,970,499,659; Note 6)			3,621,545,331
VARIATION MARGIN ON OPEN FUTURES CONTRACTS, NET(g)			218,225
LIABILITIES IN EXCESS OF OTHER ASSETS — (23.1)%			(680,860,917	)

NET ASSETS — 100%		$	2,940,902,639

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $659,448,903; cash collateral of $684,279,573 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral received for securities on loan.

(d)	Security segregated as collateral for futures contracts.

(e)	Indicates a fair valued security.

(f)	Rate quoted represents yield-to-maturity at purchase date.

(g)	Open futures contracts as of December 31, 2003 were as follows:


Number of Contracts	Type	Expiration Date	Value at Trade Date		Value at December 31, 2003		Unrealized Appreciation
Long Positions:
301	S&P 500 Index	Mar 04	$	80,620,326	$	83,572,650	$	2,952,324

SEE NOTES TO FINANCIAL STATEMENTS.

B97




		*VALUE PORTFOLIO*

SCHEDULE OF INVESTMENTS

December 31, 2003


LONG-TERM INVESTMENTS — 95.3%
COMMON STOCKS	Shares	Value (Note 2)

Aerospace & Defense — 3.8%
General Dynamics Corp.	289,100	$	26,131,749
Northrop Grumman Corp.	310,400		29,674,240

			55,805,989

Biotechnology — 0.6%
MedImmune, Inc.(a)	344,200		8,742,680

Capital Markets — 8.2%
Bank of New York Co., Inc. (The)	455,100		15,072,912
Goldman Sachs Group, Inc. (The)	77,200		7,621,956
J.P. Morgan Chase & Co.(b)	597,600		21,949,848
Lehman Brothers Holdings, Inc.(b)	381,200		29,436,264
Mellon Financial Corp.(b)	461,800		14,828,398
Merrill Lynch & Co., Inc.(b)	401,200		23,530,380
Morgan Stanley(b)	128,500		7,436,295

			119,876,053

Chemicals — 1.1%
IMC Global, Inc.(b)	863,500		8,574,555
Lyondell Chemical Co.(b)	421,800		7,149,510

			15,724,065

Commercial Banks — 1.0%
FleetBoston Financial Corp.	333,500		14,557,275

Commercial Services & Supplies — 3.5%
Allied Waste Industries, Inc.(a)(b)	858,800		11,920,144
Cendant Corp.(a)(b)	741,500		16,513,205
Waste Management, Inc.	775,000		22,940,000

			51,373,349

Communications Equipment — 1.0%
Harris Corp.	283,700		10,766,415
Motorola, Inc.	229,600		3,230,472

			13,996,887

Computers & Peripherals — 1.4%
Hewlett-Packard Co.	880,250		20,219,342

Consumer Finance — 0.8%
American Express Services Co.	244,700		11,801,881

Diversified Financial Services — 4.0%
Citigroup, Inc.	1,203,500		58,417,890

Diversified Telecommunication Services — 2.8%
SBC Communications, Inc.(b)	955,600		24,912,492
Verizon Communications, Inc.	443,600		15,561,488

			40,473,980

Electric Utilities — 4.9%
DTE Energy Co.(b)	368,300		14,511,020
FirstEnergy Corp.	880,900		31,007,680
PG&E Corp.(a)(b)	382,600		10,624,802
TXU Corp.(b)	629,000		14,919,880

			71,063,382

Electronic Equipment & Instruments — 0.5%
Agilent Technologies, Inc.(a)	240,300		7,026,372


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Energy Equipment & Services — 9.4%
Baker Hughes, Inc.	603,700	$	19,414,992
ENSCO International, Inc.	1,061,900		28,851,823
GlobalSantaFe Corp.(b)	1,066,400		26,478,712
Halliburton Co.(b)	1,084,900		28,207,400
Rowan Cos., Inc.(a)	411,000		9,522,870
Schlumberger, Ltd.	454,900		24,892,128

			137,367,925

Food & Staples Retailing — 3.0%
Kroger Co. (The)(a)	1,546,000		28,616,460
Safeway, Inc.(a)	683,600		14,977,676

			43,594,136

Food Products — 2.0%
ConAgra Foods, Inc.(b)	547,600		14,451,164
Kraft Foods, Inc. (Class “A” Stock)(b)	466,600		15,033,852

			29,485,016

Healthcare Providers & Services — 4.2%
CIGNA Corp.	268,100		15,415,750
Laboratory Corp. of America Holdings(a)(b)	400,000		14,780,000
Medco Health Solutions, Inc.(a)	372,404		12,658,012
Pacificare Health Systems, Inc.(a)	102,800		6,949,280
Tenet Healthcare Corp.(a)	701,000		11,251,050

			61,054,092

Hotels, Restaurants & Leisure — 1.8%
Brinker International, Inc.(a)	398,600		13,217,576
McDonald’s Corp.	523,700		13,003,471

			26,221,047

Household Products — 2.1%
Kimberly-Clark Corp.	517,100		30,555,439

Industrial Conglomerates — 1.7%
Tyco International, Ltd. (Bermuda)(b)	925,700		24,531,050

Insurance — 6.5%
Allstate Corp.	331,600		14,265,432
Hartford Financial Services Group, Inc.(b)	320,700		18,930,921
Travelers Property Casualty Corp. (Class “A” Stock)	1,056,445		17,727,147
UnumProvident Corp.(b)	466,300		7,353,551
XL Capital, Ltd. (Class “A” Stock)(b)	472,700		36,657,885

			94,934,936

Machinery — 0.5%
Navistar International Corp.(a)(b)	170,100		8,146,089

Media — 6.1%
Hughes Electronics Corp.(a)	885,281		14,651,401
Liberty Media Corp. (Class “A” Stock)(a)(b)	1,666,100		19,809,929
New York Times Co. (The) (Class “A” Stock)	207,600		9,921,204

SEE NOTES TO FINANCIAL STATEMENTS.

B98




		*VALUE PORTFOLIO (Continued)*

SCHEDULE OF INVESTMENTS

December 31, 2003


COMMON STOCKS (Continued)	Shares	Value (Note 2)

Media (cont’d.)
News Corp., Ltd. (The), ADR (Australia)	820,801	$	24,829,239
Time Warner, Inc.(a)(b)	426,800		7,678,132
Viacom, Inc. (Class “B” Stock)	273,800		12,151,244

			89,041,149

Office Electronics — 1.8%
Xerox Corp.(a)(b)	1,932,700		26,671,260

Oil & Gas — 5.8%
Apache Corp.(b)	133,710		10,843,881
ExxonMobil Corp.	537,900		22,053,900
Occidental Petroleum Corp.	546,600		23,088,384
Royal Dutch Petroleum Co. (Netherlands)	52,300		2,739,997
Total SA, ADR (France)	283,600		26,235,836

			84,961,998

Paper & Forest Products — 4.1%
Boise Cascade Corp.	324,000		10,646,640
Georgia-Pacific Corp.	605,500		18,570,685
International Paper Co.	701,300		30,233,043

			59,450,368

Pharmaceuticals — 3.6%
Novartis AG, ADR (Switzerland)	358,400		16,446,976
Pfizer, Inc.	640,140		22,616,146
Wyeth	305,542		12,970,258

			52,033,380

Road & Rail — 1.2%
Union Pacific Corp.	246,600		17,133,768


COMMON STOCKS (Continued)	Shares	Value (Note 2)
Semiconductors & Semiconductor Equipment — 0.1%
Agere Systems, Inc. (Class “B” Stock)(a)	679,800	$	1,971,420

Software — 2.0%
Mentor Graphics Corp.(a)	991,200		14,412,048
Microsoft Corp.	529,600		14,585,184

			28,997,232

Specialty Retail — 2.1%
Limited Brands	577,200		10,406,916
Toys “R” Us, Inc.(a)	1,554,800		19,652,672

			30,059,588

Tobacco — 3.7%
Altria Group, Inc.(b)	750,500		40,842,210
Loews Corp. — Carolina Group	540,400		13,639,696

			54,481,906

TOTAL LONG-TERM INVESTMENTS (cost $1,186,265,947)			1,389,770,944

SHORT-TERM INVESTMENT — 25.6%
Mutual Fund
Dryden Core Investment Fund — Taxable Money Market Series, (cost $374,016,849; Note 4)(c)	374,016,849		374,016,849

TOTAL INVESTMENTS — 120.9% (cost $1,560,282,796; Note 6)			1,763,787,793

LIABILITIES IN EXCESS OF OTHER ASSETS — (20.9)%			(304,764,400	)

NET ASSETS — 100%		$	1,459,023,393

The following abbreviations are used in portfolio descriptions:


ADR		American Depository Receipt

(a)	Non-income producing security.

(b)	Portion of securities on loan with an aggregate market value of $264,057,525; cash collateral $281,152,744 was received with which the portfolio purchased securities.

(c)	Represents security, or portion thereof, purchased with cash collateral for securities on loan.

SEE NOTES TO FINANCIAL STATEMENTS.

B99

Financial Highlights


	Diversified Bond Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	10.82		$	11.36		$	11.28		$	10.95		$	11.06

Income From Investment Operations:
Net investment income		0.45			0.57			0.67			0.77			0.67
Net realized and unrealized gains (losses) on investments		0.35			0.17			0.12			0.26			(0.75	)

Total from investment operations		0.80			0.74			0.79			1.03			(0.08	)

Less Distributions:
Dividends from net investment income		(0.45	)		(1.27	)		(0.71	)		(0.70	)		—
Distributions from net realized gains		—			—			—			—	(b)		(0.03	)
Tax return of capital distributions		—			(0.01	)		—			—			—

Total distributions		(0.45	)		(1.28	)		(0.71	)		(0.70	)		(0.03	)

Net Asset Value, end of year	$	11.17		$	10.82		$	11.36		$	11.28		$	10.95

Total Investment Return(a)		7.49	%		7.07	%		6.98	%		9.72	%		(0.74	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	1,418.0		$	1,370.3		$	1,400.7		$	1,269.8		$	1,253.8
Ratios to average net assets:
Expenses		0.44	%		0.44	%		0.44	%		0.45	%		0.43	%
Net investment income		4.02	%		5.25	%		6.35	%		6.83	%		6.25	%
Portfolio turnover rate		706	%		595	%		257	%		139	%		171	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Less than $0.005 per share.


	Diversified Conservative Growth Portfolio
	Year Ended December 31,												May 3, 1999(a) through December 31, 1999
	2003			2002			2001			2000			May 3, 1999(a) through December 31, 1999
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.17		$	9.89		$	10.16		$	10.37		$	10.00

Income From Investment Operations:
Net investment income		0.32			0.38			0.42			0.46			0.22
Net realized and unrealized gains (losses) on investments		1.58			(1.08	)		(0.28	)		(0.09	)		0.39

Total from investment operations		1.90			(0.70	)		0.14			0.37			0.61

Less Distributions:
Dividends from net investment income		(0.44	)		(0.02	)		(0.41	)		(0.46	)		(0.22	)
Distributions in excess of net investment income		—			—			—			(0.01	)		(0.02	)
Distributions from net realized gains		—			—			—			(0.09	)		—
Distributions in excess of net realized gains		—			—			—			(0.02	)		—

Total distributions		(0.44	)		(0.02	)		(0.41	)		(0.58	)		(0.24	)

Net Asset Value, end of period	$	10.63		$	9.17		$	9.89		$	10.16		$	10.37

Total Investment Return(b)		21.57	%		(7.10	)%		1.51	%		3.79	%		6.10	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	169.6		$	157.1		$	204.1		$	204.8		$	115.8
Ratios to average net assets:
Expenses		0.98	%		0.92	%		0.94	%		0.93	%		1.05	%(c)
Net investment income		2.93	%		3.63	%		4.17	%		4.71	%		3.74	%(c)
Portfolio turnover		224	%		271	%		315	%		319	%		107	%(d)

(a)	Commencement of investment operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Equity Portfolio
	Class I
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	15.75		$	20.49		$	24.50		$	28.90		$	29.64

Income From Investment Operations:
Net investment income		0.17			0.17			0.18			0.51			0.54
Net realized and unrealized gains (losses) on investments		4.81			(4.75	)		(2.83	)		0.26			3.02

Total from investment operations		4.98			(4.58	)		(2.65	)		0.77			3.56

Less Distributions:
Dividends from net investment income		(0.18	)		(0.16	)		(0.18	)		(0.51	)		(0.53	)
Distributions in excess of net investment income		—			—			—			(0.02	)		—
Distributions from net realized gains		—			—			(1.18	)		(4.64	)		(3.77	)

Total distributions		(0.18	)		(0.16	)		(1.36	)		(5.17	)		(4.30	)

Net Asset Value, end of year	$	20.55		$	15.75		$	20.49		$	24.50		$	28.90

Total Investment Return(a)		31.65	%		(22.34	)%		(11.18	)%		3.28	%		12.49	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	4,012.3		$	3,273.6		$	4,615.9		$	5,652.7		$	6,235.0
Ratios to average net assets:
Expenses		0.49	%		0.48	%		0.49	%		0.49	%		0.47	%
Net investment income		0.96	%		0.88	%		0.84	%		1.75	%		1.72	%
Portfolio turnover rate		54	%		54	%		153	%		78	%		9	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Equity Portfolio
	Class II
	Year Ended December 31,												May 3, 1999(c) through December 31, 1999
	2003			2002			2001			2000			May 3, 1999(c) through December 31, 1999
Per Share Operating Performance:
Net Asset Value, beginning of period	$	15.76		$	20.49		$	24.51		$	28.92		$	32.79

Income From Investment Operations:
Net investment income		0.08			0.09			0.09			0.39			0.28
Net realized and unrealized gains (losses) on investments		4.83			(4.72	)		(2.83	)		0.26			(0.60	)

Total from investment operations		4.91			(4.63	)		(2.74	)		0.65			(0.32	)

Less distributions:
Dividends from net investment income		(0.09	)		(0.10	)		(0.10	)		(0.40	)		(0.34	)
Distributions in excess of net investment income		—			—			—			(0.02	)		—
Distributions from net realized gains		—			—			(1.18	)		(4.64	)		(3.21	)

Total distributions		(0.09	)		(0.10	)		(1.28	)		(5.06	)		(3.55	)

Net Asset Value, end of period	$	20.58		$	15.76		$	20.49		$	24.51		$	28.92

Total Investment Return(a)		31.11	%		(22.62	)%		(11.57	)%		2.83	%		(0.68	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	0.8		$	0.4		$	1.1		$	1.8		$	0.3
Ratios to average net assets:
Expenses		0.89	%		0.88	%		0.89	%		0.91	%		0.87	%(b)
Net investment income		0.54	%		0.46	%		0.45	%		1.26	%		1.33	%(b)
Portfolio turnover rate		54	%		54	%		153	%		78	%		9	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(b)	Annualized.

(c)	Commencement of offering of Class II shares.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Global Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	11.35		$	15.29		$	23.61		$	30.98		$	21.16

Income From Investment Operations:
Net investment income		0.10			0.07			0.09			0.07			0.06
Net realized and unrealized gains (losses) on investments		3.74			(3.87	)		(3.58	)		(5.30	)		10.04

Total from investment operations		3.84			(3.80	)		(3.49	)		(5.23	)		10.10

Less Distributions:
Dividends from net investment income		(0.05	)		(0.14	)		(0.06	)		(0.07	)		—
Distributions in excess of net investment income		—			—			—			(0.13	)		(0.10	)
Distributions from net realized gains		—			—			(4.77	)		(1.94	)		(0.18	)

Total distributions		(0.05	)		(0.14	)		(4.83	)		(2.14	)		(0.28	)

Net Asset Value, end of year	$	15.14		$	11.35		$	15.29		$	23.61		$	30.98

Total Investment Return(a)		34.07	%		(25.14	)%		(17.64	)%		(17.68	)%		48.27	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	665.6		$	514.9		$	885.0		$	1,182.1		$	1,298.3
Ratios to average net assets:
Expenses		0.87	%		0.82	%		0.84	%		0.85	%		0.84	%
Net investment income		0.78	%		0.47	%		0.58	%		0.25	%		0.21	%
Portfolio turnover rate		88	%		75	%		67	%		95	%		76	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	High Yield Bond Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	4.59		$	5.40		$	6.14		$	7.52		$	7.21

Income From Investment Operations:
Net investment income		0.41			0.29			0.58			0.74			0.79
Net realized and unrealized gains (losses) on investments		0.71			(0.21	)		(0.62	)		(1.30	)		(0.46	)

Total from investment operations		1.12			0.08			(0.04	)		(0.56	)		0.33

Less Distributions:
Dividends from net investment income		(0.42	)		(0.89	)		(0.70	)		(0.82	)		(0.02	)

Net Asset Value, end of year	$	5.29		$	4.59		$	5.40		$	6.14		$	7.52

Total Investment Return(a)		25.04	%		1.50	%		(0.44	)%		(7.91	)%		4.61	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,466.7		$	1,128.6		$	655.8		$	661.3		$	802.2
Ratios to average net assets:
Expenses		0.60	%		0.58	%		0.60	%		0.60	%		0.60	%
Net investment income		8.11	%		9.36	%		10.93	%		10.47	%		10.48	%
Portfolio turnover rate		93	%		77	%		84	%		76	%		58	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Jennison Portfolio
	Class I
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.79		$	18.57		$	22.97		$	32.39		$	23.91

Income From Investment Operations:
Net investment income		0.04			0.03			0.04			0.01			0.05
Net realized and unrealized gains (losses) on investments		3.83			(5.78	)		(4.22	)		(5.61	)		9.88

Total from investment operations		3.87			(5.75	)		(4.18	)		(5.60	)		9.93

Less Distributions:
Dividends from net investment income		(0.04	)		(0.03	)		(0.03	)		—	(b)		(0.05	)
Distributions from net realized gains		—			—			(0.19	)		(3.82	)		(1.40	)

Total distributions		(0.04	)		(0.03	)		(0.22	)		(3.82	)		(1.45	)

Net Asset Value, end of year	$	16.62		$	12.79		$	18.57		$	22.97		$	32.39

Total Investment Return(a)		30.25	%		(30.95	)%		(18.25	)%		(17.38	)%		41.76	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,772.4		$	1,388.8		$	2,186.9		$	2,892.7		$	2,770.7
Ratios to average net assets:
Expenses		0.64	%		0.61	%		0.64	%		0.64	%		0.63	%
Net investment income		0.28	%		0.21	%		0.18	%		0.02	%		0.17	%
Portfolio turnover rate		69	%		74	%		86	%		89	%		58	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Less than $0.005 per share.


	Jennison Portfolio
	Class II
	Year Ended December 31,									February 10, 2000(d) through December 31, 2000
	2003			2002			2001			February 10, 2000(d) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	12.70		$	18.45		$	22.88		$	34.25

Income From Investment Operations:
Net investment income (loss)		(0.01	)		(0.02	)		0.01			(0.03	)
Net realized and unrealized gains (losses) on investments		3.77			(5.73	)		(4.25	)		(7.54	)

Total from investment operations		3.76			(5.75	)		(4.24	)		(7.57	)

Less Distributions:
Dividends from net investment income		—			—			—	(c)		—	(c)
Distributions from net realized gains		—			—			(0.19	)		(3.80	)

Total distributions		—			—			(0.19	)		(3.80	)

Net Asset Value, end of period	$	16.46		$	12.70		$	18.45		$	22.88

Total Investment Return(a)		29.61	%		(31.17	)%		(18.60	)%		(22.19	)%
Ratios/Supplement Data:
Net assets, end of period (in millions)	$	74.3		$	48.1		$	59.6		$	13.3
Ratios to average net assets:
Expenses		1.04	%		1.01	%		1.04	%		1.04	%(b)
Net investment income (loss)		(0.13	)%		(0.19	)%		(0.19	)%		(0.39	)%(b)
Portfolio turnover rate		69	%		74	%		86	%		89	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods less than one full year are not annualized.

(b)	Annualized.

(c)	Less than $0.005 per share.

(d)	Commencement of offering of Class II Shares.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Jennison 20/20 Focus Portfolio
	Class I
	Year Ended December 31,												May 3, 1999(a) through December 31, 1999
	2003			2002			2001			2000			May 3, 1999(a) through December 31, 1999
Per Share Operating Performance:
Net Asset Value, beginning of period	$	8.28		$	10.65		$	10.99		$	11.88		$	10.00

Income From Investment Operations:
Net investment income		0.02			0.02			0.05			0.05			0.02
Net realized and unrealized gains (losses) on investments		2.40			(2.39	)		(0.15	)		(0.71	)		1.88

Total from investment operations		2.42			(2.37	)		(0.10	)		(0.66	)		1.90

Less Distributions:
Dividends from net investment income		(0.02	)		—	(d)		(0.05	)		(0.05	)		(0.02	)
Distributions from net realized gains		—			—			(0.19	)		(0.18	)		—	(d)

Total distributions		(0.02	)		—			(0.24	)		(0.23	)		(0.02	)

Net Asset Value, end of period	$	10.68		$	8.28		$	10.65		$	10.99		$	11.88

Total Investment Return(b):		29.30	%		(22.24	)%		(1.01	)%		(5.41	)%		18.95	%
Ratios Supplemental Data:
Net assets, end of period (in millions)	$	64.6		$	57.2		$	87.8		$	95.8		$	65.0
Ratios to average net assets:
Expenses		0.95	%		0.97	%		0.93	%		0.88	%		1.09	%(c)
Net investment income		0.18	%		0.19	%		0.46	%		0.45	%		0.33	%(c)
Portfolio turnover rate		102	%		75	%		131	%		163	%		64	%(e)

(a)	Commencement of offering of Class I shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Less than $0.005 per share.

(e)	Not annualized.


	Jennison 20/20 Focus Portfolio
	Class II
	Year Ended December 31,									February 15, 2000(a) through December 31, 2000
	2003			2002			2001			February 15, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	8.23		$	10.63		$	10.99		$	11.36

Income From Investment Operations:
Net investment income		—	(d)		—	(d)		0.02			0.01
Net realized and unrealized gains (losses) on investments		2.37			(2.40	)		(0.15	)		(0.19	)

Total from investment operations		2.37			(2.40	)		(0.13	)		(0.18	)

Less Distributions:
Dividends from net investment income		—			—			(0.04	)		(0.01	)
Distributions from net realized gains		—			—			(0.19	)		(0.18	)

Total distributions		—			—			(0.23	)		(0.19	)

Net Asset Value, end of period	$	10.60		$	8.23		$	10.63		$	10.99

Total Investment Retun(b):		28.80	%		(22.58	)%		(1.30	)%		(1.53	)%
Ratios Supplemental Data:
Net assets, end of period (in millions)	$	39.6		$	7.5		$	2.0		$	0.7
Ratios to average net assets:
Expenses		1.35	%		1.37	%		1.33	%		1.28	%(c)
Net investment income (loss)		(0.22	)%		(0.21	)%		0.06	%		0.10	%(c)
Portfolio turnover rate		102	%		75	%		131	%		163	%

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	Money Market Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	10.00		$	10.00		$	10.00		$	10.00		$	10.00

Income From Investment Operations:
Net investment income and realized and unrealized gains		0.08			0.15			0.41			0.60			0.49
Dividend and distributions		(0.08	)		(0.15	)		(0.41	)		(0.60	)		(0.49	)

Net Asset Value, end of year	$	10.00		$	10.00		$	10.00		$	10.00		$	10.00

Total Investment Return(a)		0.84	%		1.52	%		4.22	%		6.20	%		4.97	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	933.7		$	1,366.6		$	1,501.9		$	1,238.2		$	1,335.5
Ratios to average net assets:
Expenses		0.44	%		0.43	%		0.43	%		0.44	%		0.42	%
Net investment income		0.84	%		1.52	%		3.86	%		6.03	%		4.90	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Small Capitalization Stock Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	12.91		$	15.48		$	17.11		$	16.25		$	14.71

Income From Investment Operations:
Net investment income		0.07			0.06			0.06			0.07			0.10
Net realized and unrealized gains (losses) on investments		4.82			(2.31	)		0.67			1.81			1.71

Total from investment operations		4.89			(2.25	)		0.73			1.88			1.81

Less Distributions:
Dividends from net investment income		(0.07	)		(0.13	)		(0.08	)		(0.08	)		—
Distributions from net realized gains		(0.09	)		(0.19	)		(2.28	)		(0.94	)		(0.27	)

Total distributions		(0.16	)		(0.32	)		(2.36	)		(1.02	)		(0.27	)

Net Asset Value, end of year	$	17.64		$	12.91		$	15.48		$	17.11		$	16.25

Total Investment Return(a)		38.27	%		(14.92	)%		5.53	%		12.81	%		12.68	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	619.9		$	467.4		$	611.1		$	568.3		$	437.5
Ratios to average net assets:
Expenses		0.48	%		0.46	%		0.48	%		0.48	%		0.45	%
Net investment income		0.47	%		0.40	%		0.52	%		0.59	%		0.70	%
Portfolio turnover rate		15	%		17	%		23	%		29	%		31	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP Aggressive Growth Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.90		$	7.58		$	9.33		$	10.00

Income From Investment Operations:
Net investment income		0.01			—	(e)		0.02			0.01
Net realized and unrealized gains (losses) on investments		1.92			(1.68	)		(1.69	)		(0.67	)

Total from investment operations		1.93			(1.68	)		(1.67	)		(0.66	)

Less Distributions:
Dividends from net investment income		—	(e)		—			(0.02	)		(0.01	)
Distributions from net realized gains		—			—			(0.06	)		—

Total distributions		—			—			(0.08	)		(0.01	)

Net Asset Value, end of period	$	7.83		$	5.90		$	7.58		$	9.33

Total Investment Return(b)		32.77	%		(22.16	)%		(17.92	)%		(6.65	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	60.6		$	15.1		$	7.5		$	2.1
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		0.16	%		0.06	%		0.39	%		0.36	%(c)
Portfolio turnover rate		22	%		26	%		62	%		6	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP Alliance Technology Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	3.35		$	5.71		$	7.62		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.03	)		(0.04	)		(0.03	)		0.01
Net realized and unrealized gains (losses) on investments		1.45			(2.32	)		(1.88	)		(2.38	)

Total from investment operations		1.42			(2.36	)		(1.91	)		(2.37	)

Less Distributions:
Dividends from net investment income		—			—			—			(0.01	)
Distributions in excess of net investment income		—			—			—			—	(c)

Total distributions		—			—			—			(0.01	)

Net Asset Value, end of period	$	4.77		$	3.35		$	5.71		$	7.62

Total Investment Return(b)		42.39	%		(41.33	)%		(25.07	)%		(23.71	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	20.0		$	6.5		$	7.7		$	6.1
Ratios to average net assets:(f)
Expenses		1.30	%		1.30	%		1.30	%		1.30	%(d)
Net investment income (loss)		(1.05	)%		(1.10	)%		(0.69	)%		0.37	%(d)
Portfolio turnover rate		88	%		81	%		47	%		23	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Less than $0.005 per share.

(d)	Annualized.

(e)	Not annualized.

(f)


	SP Balanced Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	7.96		$	9.02		$	9.80		$	10.00

Income from Investment Operations:
Net investment income		0.09			0.11			0.14			0.06
Net realized and unrealized gain (loss) on investments		1.71			(1.16	)		(0.73	)		(0.20	)

Total from investment operations		1.80			(1.05	)		(0.59	)		(0.14	)

Less Distributions:
Dividends from net investment income		(0.10	)		—			(0.14	)		(0.06	)
Distributions from net realized gains		—			(0.01	)		(0.05	)		—

Total distributions		(0.10	)		(0.01	)		(0.19	)		(0.06	)

Net asset value, end of period	$	9.66		$	7.96		$	9.02		$	9.80

Total Investment Return(b)		22.87	%		(11.67	)%		(5.99	)%		(1.42	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	449.8		$	147.3		$	66.1		$	3.7
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		1.83	%		1.96	%		3.26	%		4.89	%(c)
Portfolio turnover rate		12	%		22	%		35	%		4	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP Conservative Assset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.16		$	9.77		$	10.00		$	10.00

Income From Investment Operations:
Net investment income		0.16			0.16			0.21			0.08
Net realized and unrealized gains (losses) on investments		1.33			(0.73	)		(0.24	)		—	(c)

Total from investment operations		1.49			(0.57	)		(0.03	)		0.08

Less Dividends and Distributions:
Dividends from net investment income		(0.16	)		(0.03	)		(0.16	)		(0.08	)
Distributions from net realized gains		(.01	)		(0.01	)		(0.04	)		—	(c)

Total dividends and distributions		(.17	)		(0.04	)		(0.20	)		(0.08	)

Net Asset Value, end of period	$	10.48		$	9.16		$	9.77		$	10.00

Total Investment Return(b)		16.49	%		(5.88	)%		(0.23	)%		0.84	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	281.2		$	117.5		$	47.9		$	1.9
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(d)
Net investment income		2.60	%		2.79	%		4.76	%		8.07	%(d)
Portfolio turnover rate		22	%		25	%		29	%		4	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Less than $0.005 per share.

(d)	Annualized.

(e)	Not annualized.


	SP Growth Asset Allocation Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	6.84		$	8.27		$	9.52		$	10.00

Income from Investment Operations:
Net investment income		0.04			0.06			0.09			0.03
Net realized and unrealized losses on investments		1.88			(1.49	)		(1.21	)		(0.49	)

Total from investment operations		1.92			(1.43	)		(1.12	)		(0.46	)

Less Distributions:
Dividends from net investment income		(0.05	)		—			(0.08	)		(0.02	)
Distributions from net realized gains		—			—	(e)		(0.05	)		—

Total distributions		(0.05	)		—			(0.13	)		(0.02	)

Net Asset Value, end of period	$	8.71		$	6.84		$	8.27		$	9.52

Total Investment Return(b)		28.27	%		(17.26	)%		(11.77	)%		(4.56	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	326.7		$	96.4		$	46.8		$	3.9
Ratios to average net assets:
Expenses		0.05	%		0.05	%		0.05	%		0.05	%(c)
Net investment income		1.10	%		1.12	%		1.71	%		2.95	%(c)
Portfolio turnover rate		18	%		24	%		43	%		39	%(d)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns of less than a full year are not annualized.

(c)	Annualized.

(d)	Not annualized.

(e)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

Financial Highlights


	SP INVESCO Small Company Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.84		$	6.94		$	8.38		$	10.00

Income From Investment Operations:
Net investment loss		(0.03	)		(0.03	)		(0.02	)		—	(f)
Net realized and unrealized gains (losses) on investments		1.71			(2.07	)		(1.42	)		(1.62	)

Total from investment operations		1.68			(2.10	)		(1.44	)		(1.62	)

Net Asset Value, end of period	$	6.52		$	4.84		$	6.94		$	8.38

Total Investment Return(b)		34.71	%		(30.26	)%		(17.18	)%		(16.20	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	35.0		$	12.5		$	8.4		$	5.5
Ratios to average net assets:(d)
Expenses		1.15	%		1.15	%		1.15	%		1.15	%(c)
Net investment loss		(0.72	)%		(0.73	)%		(0.28	)%		(0.10	)%(c)
Portfolio turnover rate		122	%		109	%		83	%		29	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

(f)	Less than $0.005 per share.


	SP Jennison International Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001(f)			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.22		$	5.45		$	8.50		$	10.00

Income From Investment Operations:
Net investment income		0.01			0.01			0.02			0.01
Net realized and unrealized gains (losses) on investments		1.66			(1.24	)		(3.05	)		(1.51	)

Total from investment operations		1.67			(1.23	)		(3.03	)		(1.50	)

Less Distributions:
Tax return of capital distributions		—			—			(0.02	)		—

Net Asset Value, end of period	$	5.89		$	4.22		$	5.45		$	8.50

Total Investment Return(b)		39.57	%		(22.57	)%		(35.64	)%		(15.00	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	105.6		$	34.9		$	19.9		$	7.6
Ratios to average net assets:(d)
Expenses		1.15	%		1.24	%		1.24	%		1.24	%(c)
Net investment income		0.56	%		0.26	%(g)		0.31	%(g)		0.51	%(c)
Portfolio turnover rate		121	%		108	%		86	%		12	%(e)

(a)	Commencement of offering of Class I shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

(f)	Calculated based upon weighted average shares outstanding during the year.

(g)

SEE NOTES TO FINANCIAL STATEMENTS.

D10

Financial Highlights


	SP Jennison International Growth Portfolio
	Class II
	Year Ended December 31,									October 4, 2000(a) through December 31, 2000
	2003			2002			2001(g)			October 4, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.19		$	5.43		$	8.48		$	9.79

Income From Investment Operations:
Net investment income (loss)		0.01			—	(f)		—	(f)		—	(f)
Net realized and unrealized gains (losses) on investments		1.63			(1.24	)		(3.04	)		(1.31	)

Total from investment operations		1.64			(1.24	)		(3.04	)		(1.31	)

Less Distributions:
Tax return of capital distributions		—			—			(0.01	)		—
Net Asset Value, end of period	$	5.83		$	4.19		$	5.43		$	8.48

Total Investment Return(b)		39.14	%		(22.84	)%		(35.92	)%		(13.28	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	113.6		$	23.6		$	14.9		$	2.7
Ratios to average net assets:(d)
Expenses		1.54	%		1.64	%		1.64	%		1.64	%(c)
Net investment income (loss)		0.04	%		(0.11	)%(h)		(0.03	)%(h)		—	%(c)
Portfolio turnover rate		121	%		108	%		86	%		12	%(e)

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total investment returns for years of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

(f)	Less than $0.005 per share.

(g)	Calculated based upon weighted average shares outstanding during the year.

(h)

SEE NOTES TO FINANCIAL STATEMENTS.

D11

Financial Highlights


	SP Large Cap Value Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	7.81		$	9.44		$	10.44		$	10.00

Income From Investment Operations:
Net investment income		0.09			0.08			0.09			0.04
Net realized and unrealized gains (losses) on investments		2.00			(1.62	)		(0.99	)		0.44

Total from investment operations		2.09			(1.54	)		(0.90	)		0.48

Less Distributions:
Dividends from net investment income		—			(0.09	)		(0.10	)		(0.04	)
Distributions in excess of net investment income		—			—			—			—	(e)
Tax Return of Capital		—			—	(e)		—			—

Total distributions		—			(0.09	)		(0.10	)		(0.04	)

Net Asset Value, end of period	$	9.90		$	7.81		$	9.44		$	10.44

Total Investment Return(b)		26.76	%		(16.37	)%		(8.65	)%		4.82	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	72.9		$	38.3		$	23.7		$	3.9
Ratios to average net assets:(d)
Expenses		0.90	%		0.90	%		0.90	%		0.90	%(c)
Net investment income		1.32	%		1.22	%		1.18	%		1.60	%(c)
Portfolio turnover rate		73	%		96	%		61	%		13	%(f)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Less than $0.005 per share.

(f)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D12

Financial Highlights


	SP MFS Capital Opportunities Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.00		$	7.01		$	9.15		$	10.00

Income From Investment Operations:
Net investment income		0.01			0.01			—	(f)		0.01
Net realized and unrealized gain (loss) on investments		1.33			(2.02	)		(2.13	)		(0.85	)

Total from investment operations		1.34			(2.01	)		(2.13	)		(0.84	)

Less Distributions:
Dividends from net investment income		(0.01	)		—			(0.01	)		(0.01	)

Net Asset Value, end of period	$	6.33		$	5.00		$	7.01		$	9.15

Total Return(b)		26.80	%		(28.67	)%		(23.28	)%		(8.39	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	20.3		$	9.3		$	8.2		$	4.3
Ratios to average net assets:(d)
Expenses		1.00	%		1.00	%		1.00	%		1.00	%(c)
Net investment income		0.34	%		0.16	%		(—	)%(g)		0.40	%(c)
Portfolio turnover rate		58	%		143	%		99	%		25	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

(f)	Less than $0.005 per share.

(g)	Less than $0.005%.


	SP Mid-Cap Growth Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.09		$	7.62		$	9.69		$	10.00

Income From Investment Operations:
Net investment income loss		(0.02	)		(0.02	)		(0.01	)		0.02
Net realized and unrealized gain (loss) on investments		1.66			(3.51	)		(2.01	)		(0.25	)

Total from investment operations		1.64			(3.53	)		(2.02	)		(0.23	)

Less Distributions:
Dividends from net investment income		—			—			(0.01	)		(0.02	)
Distributions from net realized gains		—			—			(0.04	)		(0.06	)

Total distributions		—			—			(0.05	)		(0.08	)

Net Asset Value, end of period	$	5.73		$	4.09		$	7.62		$	9.69

Total Investment Return(b)		40.10	%		(46.33	)%		(20.93	)%		(2.26	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	58.9		$	18.3		$	15.9		$	5.6
Ratios to average net assets:(d)
Expenses		1.00	%		1.00	%		1.00	%		1.00	%(c)
Net investment income (loss)		(0.73	)%		(0.59	)%		(0.20	)%		1.16	%(c)
Portfolio turnover rate		73	%		255	%		93	%		27	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D13

Financial Highlights


	SP PIMCO Total Return Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	11.41		$	10.70		$	10.40		$	10.00

Income From Investment Operations:
Net investment income		0.23			0.28			0.32			0.13
Net realized and unrealized gains on investments		0.43			0.71			0.57			0.39

Total from investment operations		0.66			0.99			0.89			0.52

Less Distributions:
Dividends from net investment income		(0.28	)		(0.28	)		(0.34	)		(0.11	)
Distributions from net realized gains		(0.25	)		—	(f)		(0.25	)		(0.01	)

Total distributions		(0.53	)		(0.28	)		(0.59	)		(0.12	)

Net Asset Value, end of period	$	11.54		$	11.41		$	10.70		$	10.40

Total Investment Return(b)		5.85	%		9.39	%		8.66	%		5.18	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	839.1		$	471.7		$	147.0		$	10.7
Ratios to average net assets:
Expenses		0.65	%		0.67	%		0.76	%(d)		0.76	%(c)(d)
Net investment income		2.19	%		3.02	%		3.69	%(d)		5.94	%(c)(d)
Portfolio turnover rate		656	%		574	%		718	%		239	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)	Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment income ratios would have been 0.82% and 3.63%, respectively, for the year ended December 31, 2001 and 2.73% and 3.97%, respectively, for the period ended December 31, 2000.

(e)	Not annualized.

(f)	Less than $0.005 per share.


	SP Prudential U.S. Emerging Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.68		$	6.89		$	8.38		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.02	)		(0.02	)		(0.01	)		0.01
Net realized and unrealized gains (losses) on investments		1.99			(2.19	)		(1.48	)		(1.62	)

Total from investment operations		1.97			(2.21	)		(1.49	)		(1.61	)

Less Dividends:
Dividends from net investment income		—			—			—			(0.01	)

Net Asset Value, end of period	$	6.65		$	4.68		$	6.89		$	8.38

Total Investment Return(b)		42.09	%		(32.08	)%		(17.78	)%		(16.11	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	170.0		$	51.0		$	31.2		$	6.4
Ratios to average net assets:
Expenses		0.80	%		0.90	%(d)		0.90	%(d)		0.90	%(c)(d)
Net investment income (loss)		(0.56	)%		(0.48	)%(d)		(0.37	)%(d)		0.49	%(c)(d)
Portfolio turnover rate		213	%		299	%		258	%		82	%(e)

(a)	Commencement of operations.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D14

Financial Highlights


	SP Prudential U.S. Emerging Growth Portfolio
	Class II
	Year Ended December 31,						July 9, 2001(a) through December 31, 2001
	2003			2002			July 9, 2001(a) through December 31, 2001
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.65		$	6.88		$	7.56

Income From Investment Operations:
Net investment loss		(0.05	)		(0.05	)		(0.01	)
Net realized and unrealized gains (losses) on investments		1.98			(2.18	)		(0.67	)

Total from investment operations		1.93			(2.23	)		(0.68	)

Net Asset Value, end of period	$	6.58		$	4.65		$	6.88

Total Investment Return(b)		41.51	%		(32.41	)%		(8.99	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	0.3		$	0.2		$	0.2
Ratios to average net assets:
Expenses		1.20	%		1.30	%(c)		1.30	%(c)(d)
Net investment loss		(0.97	)%		(0.89	)%(c)		(0.87	)%(c)(d)
Portfolio turnover rate		213	%		299	%		258	%

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Net of expense subsidy. If the investment advisor had not subsidized expenses, the annual expense and net investment loss ratios would have 1.38% and (0.95)%, respectively, for the year ended December 31, 2002, 1.81% and (1.38)%, respectively, for the period ended December 31, 2001.

(d)	Annualized.


	SP Small/Mid Cap Value Portfolio
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001
Per Share Operating Performance:
Net Asset Value, beginning of period	$	9.68		$	11.36		$	11.13		$	10.00

Income From Investment Operations:
Net investment income		0.02			0.05			0.08			0.03
Net realized and unrealized gains (losses) on investments		3.18			(1.68	)		0.26			1.10

Total from investment operations		3.20			(1.63	)		0.34			1.13

Less Dividends:
Dividends from net investment income		—	(b)		(0.05	)		(0.11	)		—	(b)

Net Asset Value, end of period	$	12.88		$	9.68		$	11.36		$	11.13

Total Investment Return(c)		33.11	%		(14.38	)%		3.11	%		11.33	%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	250.6		$	99.2		$	47.4		$	6.1
Ratios to average net assets:
Expenses		1.04	%		1.05	%(e)		1.05	%(e)		1.05	%(d)(e)
Net investment income		0.37	%		0.69	%(e)		1.08	%(e)		1.79	%(d)(e)
Portfolio turnover rate		90	%		116	%		89	%		18	%(f)

(a)	Commencement of operations.

(b)	Less than $0.005 per share.

(c)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(d)	Annualized.

(e)

(f)	Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

D15

Financial Highlights


	SP Strategic Partners Focused Growth Portfolio
	Class I
	Year Ended December 31,									September 22, 2000(a) through December 31, 2000
	2003			2002			2001(g)			September 22, 2000(a) through December 31, 2000
Per Share Operating Performance:
Net Asset Value, beginning of period	$	5.03		$	6.73		$	7.94		$	10.00

Income From Investment Operations:
Net investment income (loss)		(0.01	)		(0.01	)		(0.01	)		—	(f)
Net realized and unrealized gains (losses) on investments		1.31			(1.69	)		(1.20	)		(2.06	)

Total from investment operations		1.30			(1.70	)		(1.21	)		(2.06	)

Net Asset Value, end of period	$	6.33		$	5.03		$	6.73		$	7.94

Total Investment Return(b)		25.84	%		(25.26	)%		(15.32	)%		(20.47	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	21.6		$	10.8		$	7.7		$	5.9
Ratios to average net assets:(d)
Expenses		1.01	%		1.01	%		1.01	%		1.01	%(c)
Net investment income (loss)		(0.28	)%		(0.30	)%		(0.16	)%		0.18	%(c)
Portfolio turnover rate		93	%		62	%		116	%		37	%(e)

(a)	Commencement of offering of Class I shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Not annualized.

(f)	Less than $0.005 per share

(g)	Calculated based upon weighted average shares outstanding during the year.


	SP Strategic Partners Focused Growth Portfolio
	Class II
	Year Ended December 31,						January 12, 2001(a) through December 31, 2001(e)
	2003			2002
Per Share Operating Performance:
Net Asset Value, beginning of period	$	4.99		$	6.70		$	8.43

Income From Investment Operations:
Net investment loss		(0.03	)		(0.02	)		(0.03	)
Net realized and unrealized gains (losses) on investments		1.30			(1.69	)		(1.70	)

Total from investment operations		1.27			(1.71	)		(1.73	)

Net Asset Value, end of period	$	6.26		$	4.99		$	6.70

Total Investment Return(b)		25.45	%		(25.52	)%		(20.80	)%
Ratios/Supplemental Data:
Net assets, end of period (in millions)	$	14.3		$	6.6		$	2.0
Ratios to average net assets:(d)
Expenses		1.41	%		1.41	%		1.41	%(c)
Net investment loss		(0.68	)%		(0.68	)%		(0.58	)%(c)
Portfolio turnover rate		93	%		62	%		116	%

(a)	Commencement of offering of Class II shares.

(b)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(c)	Annualized.

(d)

(e)	Calculated based upon weighted average shares outstanding during the period.

SEE NOTES TO FINANCIAL STATEMENTS.

D16

Financial Highlights


	Stock Index Portfolio
	Year Ended December 31,
	2003			2002			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	24.09		$	31.64		$	38.66		$	44.45		$	37.74

Income From Investment Operations:
Net investment income		0.36			0.37			0.36			0.36			0.44
Net realized and unrealized gains (losses) on investments		6.14			(7.34	)		(5.05	)		(4.37	)		7.23

Total from investment operations		6.50			(6.97	)		(4.69	)		(4.01	)		7.67

Less Distributions:
Dividends from net investment income		(0.37	)		(0.36	)		(0.35	)		(0.37	)		(0.43	)
Distributions from net realized gains		(0.93	)		(0.22	)		(1.98	)		(1.41	)		(0.53	)

Total distributions		(1.30	)		(0.58	)		(2.33	)		(1.78	)		(0.96	)

Net Asset Value, end of year	$	29.29		$	24.09		$	31.64		$	38.66		$	44.45

Total Investment Return(a)		28.18	%		(22.19	)%		(12.05	)%		(9.03	)%		20.45	%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	2,940.9		$	2,352.3		$	3,394.1		$	4,186.0		$	4,655.0
Ratios to average net assets:
Expenses		0.37	%		0.37	%		0.39	%		0.39	%		0.39	%
Net investment income		1.42	%		1.25	%		1.02	%		0.83	%		1.09	%
Portfolio turnover rate		2	%		4	%		3	%		7	%		2	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.


	Value Portfolio
	Class I
	Year Ended December 31,
	2003			2002(b)			2001			2000			1999
Per Share Operating Performance:
Net Asset Value, beginning of year	$	13.75		$	17.91		$	20.46		$	19.52		$	20.03

Income From Investment Operations:
Net investment income		0.23			0.22			0.25			0.46			0.51
Net realized and unrealized gains (losses) on investments		3.62			(4.15	)		(0.69	)		2.45			1.89

Total from investment operations		3.85			(3.93	)		(0.44	)		2.91			2.40

Less Distributions:
Dividends from net investment income		(0.24	)		(0.23	)		(0.30	)		(0.44	)		(0.50	)
Distributions from net realized gains		—			—			(1.81	)		(1.53	)		(2.41	)
Tax return of capital distributions		—	(c)		—			—			—			—

Total distributions		(0.24	)		(0.23	)		(2.11	)		(1.97	)		(2.91	)

Net asset value, end of year	$	17.36		$	13.75		$	17.91		$	20.46		$	19.52

Total Investment Return(a)		28.07	%		(21.97	)%		(2.08	)%		15.59	%		2.52	%
Ratios/Supplement Data:
Net assets, end of year (in millions)	$	1,456.1		$	1,247.0		$	1,801.4		$	1,975.3		$	2,040.0
Ratios to average net assets:
Expenses		0.44	%		0.43	%		0.44	%		0.45	%		0.42	%
Net investment income		1.49	%		1.39	%		1.32	%		2.31	%		2.34	%
Portfolio turnover rate		72	%		94	%		175	%		85	%		16	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Calculated based upon weighted average shares outstanding during the year.

(c)	Less than .005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

D17

Financial Highlights


	Value Portfolio
	Class II
	Year Ended December 31,						May 14, 2001(c) through December 31, 2001
	2003(d)			2002(d)			May 14, 2001(c) through December 31, 2001
Per Share Operating Performance:
Net Asset Value, beginning of year	$	13.75		$	17.91		$	19.79

Income From Investment Operations:
Net investment income		0.16			0.16			0.12
Net realized and unrealized gain (losses) on investments		3.62			(4.15	)		(1.01	)

Total from investment operations		3.78			(3.99	)		(0.89	)

Less Distributions:
Dividends from net investment income		(0.16	)		(0.17	)		(0.14	)
Distributions from net realized gains		—			—			(0.85	)
Tax return of capital distributions		—	(e)		—			—

Total distributions		(0.16	)		(0.17	)		(0.99	)

Net Asset Value, end of year	$	17.37		$	13.75		$	17.91

Total Investment Return(a)		27.63	%		(22.35	)%		(4.34	)%
Ratios/Supplemental Data:
Net assets, end of year (in millions)	$	2.9		$	1.5		$	1.1
Ratios to average net assets:
Expenses		0.84	%		0.83	%		0.84	%(b)
Net investment income		1.10	%		1.04	%		0.94	%(b)
Portfolio turnover rate		72	%		94	%		175	%

(a)	Total investment return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total investment returns for periods of less than one full year are not annualized.

(b)	Annualized.

(c)	Commencement of offering of Class II shares.

(d)	Calculated based upon weighted average shares outstanding during the year.

(e)	Less than $0.005 per share.

SEE NOTES TO FINANCIAL STATEMENTS.

D18

At Prudential Financial, we are committed to making it easy for you to take advantage of the many benefits your Discovery Select^®Variable Annuity and Discovery Choice^®Variable Annuity offer. So whenever you need assistance, do not hesitate to call or write the Prudential Annuity Service Center. Of course your licensed financial professional is also available to assist you with more complex matters such as identifying your goals, investment time horizon, and level of risk.

HOW TO REACH US BY PHONE

Customer Service Representatives

For personalized annuity service, you can call one of our specially trained customer service representatives toll free Monday to Friday, 8 a.m. to 8 p.m. ET. at (888) PRU-2888 (778-2888).

HOW TO REACH US BY MAIL

Any written requests or correspondence about your annuity should be directed as follows:


Regular Mail		Express Mail
Prudential Annuity Service Center		Prudential Annuity Service Center
PO Box 7960		2101 Welsh Road
Philadelphia, PA 19101		Dresher, PA 19025

For online access to your policy information, visit www.prudential.com.

Discovery Select^{^®}Variable Annuity and Discovery Choice^{^®}Variable Annuity are issued by Pruco Life Insurance Company (in New York, issued by Pruco Life Insurance Company of New Jersey), both located at 213 Washington Street, Newark, NJ 07102-2992, and distributed by Prudential Investment Management Services LLC (PIMS), member SIPC, Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. All are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations. Discovery Select and Discovery Choice are registered service marks of The Prudential Insurance Company of America.

The 2003 Audited Financial Statements of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey will be available commencing April 30, 2004. You may call (888) 778-2888 to obtain a free copy of the audited financial statements of the insurance company that issued your contract.

All guarantees are based on the claims-paying ability of the issuer. The guarantees do not apply to the investment performance or safety of the underlying portfolios in the variable annuity.

Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.


ANNUITIES ARE:		NOT FDIC INSURED		NOT BANK GUARANTEED		MAY LOSE VALUE

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Item 2 – Code of Ethics — See Exhibit (a)

As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.

The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 973-802-6469, and ask for a copy of the Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers.

Item 3 – Audit Committee Financial Expert –

The registrant’s Board has determined that Mr. John A. Pileski, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

Item 4 – Principal Accountant Fees and Services –

Form N-CSR, Item 4. Principal Accountant Fees and Services

(a)	Audit Fees

For each of the fiscal years ended December 31, 2003 and December 31, 2002 PricewaterhouseCoopers LLP (“PwC”), the Registrant’s principal accountant, billed the Registrant $821,000 (for 36 portfolios) for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.

(b)	Audit-Related Fees

None.

(c)

Tax Fees

None.

(d)	All Other Fees

None.

(e) (1) Audit Committee Pre-Approval Policies and Procedures

THE PRUDENTIAL MUTUAL FUNDS

AUDIT COMMITTEE POLICY

Pre-Approval of Services Provided by the Independent Accountants

The Audit Committee of each Prudential Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

•

a review of the nature of the professional services expected to be provided,

•

a review of the safeguards put into place by the accounting firm to safeguard independence, and

•

periodic meetings with the accounting firm.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services. Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants. Proposed services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.

The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve.

The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services which the Committee (or the Committee Chair) would consider for pre-approval.

Audit Services

The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants

Annual Fund financial statement audits

Seed audits (related to new product filings, as required)

SEC and regulatory filings and consents

Audit-related Services

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:

Accounting consultations

Fund merger support services

Agreed Upon Procedure Reports

Attestation Reports

Other Internal Control Reports

Individual audit-related services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000.

Tax Services

The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:

Tax compliance services related to the filing or amendment of the following:

Federal, state and local income tax compliance; and,

Sales and use tax compliance

Timely RIC qualification reviews

Tax distribution analysis and planning

Tax authority examination services

Tax appeals support services

Accounting methods studies

Fund merger support services

Tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the

Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000.

Other Non-audit Services

Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Proscribed Services

The Fund’s independent accountants will not render services in the following categories of non-audit services:

Bookkeeping or other services related to the accounting records or financial statements of the Fund

Financial information systems design and implementation

Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

Actuarial services

Internal audit outsourcing services

Management functions or human resources

Broker or dealer, investment adviser, or investment banking services

Legal services and expert services unrelated to the audit

Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval of Non-Audit Services Provided to Other Entities Within the Prudential Fund Complex

Certain non-audit services provided to Prudential Investments LLC or any of its affiliates that also provide ongoing services to the Prudential Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process, will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Although the Audit Committee will not pre-approve all services provided to Prudential Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to Prudential Investments and its affiliates.

(e)-(2) Percentage of services referred to in 4(b)- (4)(d) that were approved by the audit committee –Not applicable.

(f)	Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.

Not applicable.

(g)	Non-Audit Fees

N/A to Registrant. The aggregate non-audit fees billed by PwC for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for each of the last two fiscal years 2003 and 2002 were $1,715,979 and $1,601,295 respectively.

(h) Principal Accountants Independence

The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining PwC’s independence.

Item 5 – Reserved

Item 6 – Reserved

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not required in

this filing

Item 8 – Reserved

Item 9 – Controls and Procedures

(a)

It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b)

There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 10 – Exhibits

(a)

Code of Ethics – attached hereto

(b)

Certifications pursuant to Section 302 and 906 of the Sarbanes-Oxley Act – Attached hereto

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, thereunto duly authorized.


(Registrant) The Prudential Series Fund, Inc.

By (Signature and Title)*		/s/ Jonathan D. Shain

		Jonathan D. Shain Secretary



Date		February 12, 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 (Signature and Title)*		/s/ David R. Odenath

		David R. Odenath President and Principal Executive Officer



Date		February 12, 2004



By (Signature and Title)*		/s/ Grace C. Torres

		Grace C. Torres Treasurer and Principal Financial Officer



Date		February 12, 2004

^*	Print the name and title of each signing officer under his or her signature.