-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DowjrtCnTOe5cAP+XsMexlspesc31gKK77sZ59hsmtsjZq2rRRukzOHgdedmyTMj NpcOKAh9xy7LvQsEZMmpQA== 0000950123-03-009898.txt : 20030828 0000950123-03-009898.hdr.sgml : 20030828 20030828125021 ACCESSION NUMBER: 0000950123-03-009898 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030828 EFFECTIVENESS DATE: 20030828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRAVELERS SERIES TRUST CENTRAL INDEX KEY: 0000880583 IRS NUMBER: 061346133 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06465 FILM NUMBER: 03870356 BUSINESS ADDRESS: STREET 1: ONE TOWER SQUARE STREET 2: C/O TRAVELERS INSURANCE CO CITY: HARTFORD STATE: CT ZIP: 06183-2020 BUSINESS PHONE: 2032777379 MAIL ADDRESS: STREET 1: ONE TOWER SQUARE STREET 2: ATTN FINANCIAL SERVICES LEGAL DIVISION CITY: HARTFORD STATE: CT ZIP: 06183-2020 N-CSRS 1 y88628nvcsrs.txt FORM N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6465 The Travelers Series Trust (Exact name of registrant as specified in charter) 125 Broad Street, New York, NY 10004 (Address of principal executive offices) (Zip code) Christina T. Sydor, Esq. 300 First Stamford Place Stamford, CT 06902 (Name and address of agent for service) Registrant's telephone number, including area code: (800) 451-2010 Date of fiscal year end: DECEMBER 31 Date of reporting period: JUNE 30, 2003 ITEM 1. REPORT TO STOCKHOLDERS. The SEMI-ANNUAL Report to Stockholders is filed herewith. SEMI-ANNUAL REPORT JUNE 30, 2003 [UMBRELLA GRAPHIC] THE TRAVELERS SERIES TRUST: CONVERTIBLE SECURITIES PORTFOLIO MFS MID CAP GROWTH PORTFOLIO MFS RESEARCH PORTFOLIO [TRAVELERS LIFE AND ANNUITY LOGO] The Travelers Insurance Company The Travelers Life and Annuity Company One Cityplace Hartford, CT 06103 SEMI-ANNUAL REPORT FOR THE TRAVELERS SERIES TRUST - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- WHAT'S INSIDE Letter from the Chairman.................................... 1 Schedules of Investments.................................... 2 Statements of Assets and Liabilities........................ 17 Statements of Operations.................................... 18 Statements of Changes in Net Assets......................... 19 Notes to Financial Statements............................... 21 Financial Highlights........................................ 24
SEMI-ANNUAL REPORT FOR THE TRAVELERS SERIES TRUST - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LETTER FROM THE CHAIRMAN [R. JAY GERKEN PHOTO] R. JAY GERKEN, CFA Chairman, President and Chief Executive Officer DEAR SHAREHOLDER, The philosopher Bertrand Russell famously remarked that, "Change is one thing, progress is another." You will notice in the following pages that we have begun to implement some changes to your shareholder report and we will be reflecting other changes in future reports. Our aim is to make meaningful improvements in reporting on the management of your Fund and its performance, not just to enact change for change's sake. Please bear with us during this transition period. We invite you to read this report in full. Please take the opportunity to talk to your financial adviser about this report or any other questions or concerns you have about your Fund and your financial future. As always, thank you for entrusting your assets to us. We look forward to helping you continue to meet your financial goals. Sincerely, /s/ R. JAY GERKEN R. Jay Gerken, CFA Chairman, President and Chief Executive Officer July 23, 2003 1 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) JUNE 30, 2003 CONVERTIBLE SECURITIES PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCK -- 34.3% - ----------------------------------------------------------------------------------------------- AUTOMOTIVE -- 7.8% 50,000 Ford Motor Co. Capital Trust II, 6.500%..................... $ 2,172,500 General Motors Corp.: 53,000 5.250%.................................................... 1,187,200 47,000 6.250%.................................................... 1,170,300 - ----------------------------------------------------------------------------------------------- 4,530,000 - ----------------------------------------------------------------------------------------------- ELECTRIC -- 3.0% Calenergy Capital Trust: 3,150 6.250%.................................................... 148,050 3,070 6.500%.................................................... 136,615 39,000 Calpine Capital Trust III, 5.000%........................... 1,467,375 - ----------------------------------------------------------------------------------------------- 1,752,040 - ----------------------------------------------------------------------------------------------- HOUSEWARES -- 4.6% 56,000 Newell Financial Trust I, 5.250%............................ 2,667,000 - ----------------------------------------------------------------------------------------------- MEDIA -- 4.8% 33,250 Tribune Co., 2.000%......................................... 2,807,963 - ----------------------------------------------------------------------------------------------- PHARMACEUTICALS -- 0.8% 8,000 Omnicare, Inc., 4.000%...................................... 438,400 - ----------------------------------------------------------------------------------------------- PIPELINES -- 2.1% 43,200 El Paso Energy Corp. Capital Trust I, 4.750%................ 1,248,480 - ----------------------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUST -- 7.1% 39,515 Equity Office Properties Trust, 5.250%...................... 1,963,895 72,841 Equity Residential Properties, 7.250%....................... 1,856,717 13,900 Reckson Associates Realty Corp., 7.625%..................... 337,770 - ----------------------------------------------------------------------------------------------- 4,158,382 - ----------------------------------------------------------------------------------------------- SAVINGS AND LOANS -- 4.1% 25,000 Washington Mutual Capital Trust I, 5.375% (a)............... 1,481,250 15,000 Washington Mutual Inc., 5.375%.............................. 888,750 - ----------------------------------------------------------------------------------------------- 2,370,000 - ----------------------------------------------------------------------------------------------- TELECOMMUNICATIONS -- 0.0% Global Crossing Ltd.: 1,200 6.750% (b)................................................ 12 1,200 7.000% (a)(b)............................................. 12 6,000 Loral Space & Communications Ltd., 6.000% (a)............... 21,000 8,000 Williams Communications Group Inc., 6.750% (a).............. 3,000 - ----------------------------------------------------------------------------------------------- 24,024 - ----------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCK (Cost -- $21,164,531)..... 19,996,289 - -----------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 2 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 CONVERTIBLE SECURITIES PORTFOLIO
FACE AMOUNT RATING(c) SECURITY VALUE - ------------------------------------------------------------------------------------------------- CONVERTIBLE BONDS AND NOTES -- 63.6% - ------------------------------------------------------------------------------------------------- AUTOMOTIVE -- 2.9% Lear Corp.: $2,060,000 BB+ Zero coupon due 2/20/22................................... $ 970,775 1,500,000 BB+ Zero coupon due 2/20/22 (a)............................... 706,875 - ------------------------------------------------------------------------------------------------- 1,677,650 - ------------------------------------------------------------------------------------------------- BIOTECHNOLOGY -- 0.9% 74,000 NR Aviron, 5.250% due 2/1/08................................... 77,237 Inhale Therapeutic Systems, Inc.: 250,000 NR 3.500% due 10/17/07....................................... 196,250 300,000 NR 3.500% due 10/17/07 (a)................................... 235,500 - ------------------------------------------------------------------------------------------------- 508,987 - ------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES -- 0.1% 100,000 NR Quanta Services Inc., 4.000% due 7/1/07..................... 82,250 - ------------------------------------------------------------------------------------------------- COMPUTER SERVICES -- 0.9% 500,000 BBB Electric Data Systems Corp., 3.875% due 7/15/23 (a)......... 515,625 - ------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES -- 7.8% 3,250,000 AAA American International Group, Inc., zero coupon due 11/9/31................................................... 2,136,875 500,000 AAA IBK Cayman Finance Co., 1.500% due 8/17/03 (a).............. 537,235 3,370,000 Aa3* Merrill Lynch & Co., Inc., zero coupon due 5/23/31.......... 1,845,075 50,000 B Providian Financial Corp., 4.000% due 5/15/08............... 55,688 - ------------------------------------------------------------------------------------------------- 4,574,873 - ------------------------------------------------------------------------------------------------- ELECTRIC -- 2.4% 800,000 B1* Calpine Corp., 4.000% due 12/26/06 (a)...................... 724,000 350,000 BBB PPL Energy Supply LLC, 2.625% due 5/15/23 (a)............... 365,750 200,000 B2* Sierra Pacific Resources, 7.250% due 2/14/10 (a)............ 328,250 - ------------------------------------------------------------------------------------------------- 1,418,000 - ------------------------------------------------------------------------------------------------- ELECTRONICS -- 3.4% 800,000 BB Agilent Technologies Inc., 3.000% due 12/1/21............... 782,000 2,400,000 BBB- Arrow Electronics Inc., zero coupon due 2/21/21............. 1,182,000 - ------------------------------------------------------------------------------------------------- 1,964,000 - ------------------------------------------------------------------------------------------------- HEALTHCARE -- 2.5% 500,000 NR Lincare Holdings Inc., 3.000% due 6/15/33 (a)............... 510,000 Universal Health Services, Inc.: 1,100,000 BBB- 0.426% due 6/23/20........................................ 653,125 450,000 BBB- 0.426% due 6/23/20 (a).................................... 267,188 - ------------------------------------------------------------------------------------------------- 1,430,313 - ------------------------------------------------------------------------------------------------- LEISURE TIME -- 1.4% 1,950,000 BB+ Royal Caribbean Cruises Ltd., zero coupon due 2/2/21........ 845,813 - -------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 3 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 CONVERTIBLE SECURITIES PORTFOLIO
FACE AMOUNT RATING(C) SECURITY VALUE - ------------------------------------------------------------------------------------------------- MANUFACTURING -- 3.8% Tyco International Group, S.A.: $ 300,000 BBB- 2.750% due 1/15/18 (a).................................... $ 324,750 1,700,000 BBB- 3.125% due 1/15/23 (a).................................... 1,870,000 - ------------------------------------------------------------------------------------------------- 2,194,750 - ------------------------------------------------------------------------------------------------- MEDIA -- 10.0% 1,000,000 NR Adelphia Communications Corp., 6.000% due 2/15/06 (d)....... 192,500 1,330,000 CCC- Charter Communications Inc., 4.750% due 6/1/06.............. 884,450 Liberty Media Corp.: 500,000 BBB- 0.750% due 3/30/23 (a).................................... 568,750 1,800,000 BBB- 4.000% due 11/15/29....................................... 1,172,250 950,000 BBB- 3.500% due 1/15/31........................................ 719,625 250,000 BBB- 3.500% due 1/15/31 (a).................................... 189,375 2,000,000 BBB+ The Walt Disney Co., 2.125% due 4/15/23..................... 2,087,500 - ------------------------------------------------------------------------------------------------- 5,814,450 - ------------------------------------------------------------------------------------------------- OIL AND GAS -- 7.2% Diamond Offshore Drilling Inc.: 1,130,000 A 1.500% due 4/15/31........................................ 1,063,612 400,000 A 1.500% due 4/15/31 (a).................................... 376,500 Global Marine Inc.: 2,000,000 A- Zero coupon due 6/23/20................................... 1,147,500 600,000 A- Zero coupon due 6/23/20 (a)............................... 344,250 1,000,000 BBB Halliburton Co., 3.125% due 7/15/23 (a)..................... 1,012,500 300,000 B Hanover Compressor Co., 4.750% due 3/15/08.................. 270,375 - ------------------------------------------------------------------------------------------------- 4,214,737 - ------------------------------------------------------------------------------------------------- PHARMACEUTICALS -- 5.3% 600,000 B Advanced Medical Optics, Inc., 3.500% due 4/15/23 (a)....... 642,750 400,000 A Allergan, Inc., zero coupon due 11/6/22 (a)................. 390,500 Cephalon Inc.: 600,000 B- 2.500% due 12/15/06 (a)................................... 555,750 600,000 B- Tranche A, zero coupon due 6/15/33 (a).................... 554,250 800,000 B- Tranche B, zero coupon due 6/15/33 (a).................... 731,000 200,000 BBB- Watson Pharmaceuticals, Inc., 1.750% due 3/15/23 (a)........ 242,750 - ------------------------------------------------------------------------------------------------- 3,117,000 - ------------------------------------------------------------------------------------------------- PIPELINES -- 1.5% 2,027,000 B El Paso Corp., zero coupon due 2/28/21...................... 896,947 - ------------------------------------------------------------------------------------------------- RETAIL -- 7.2% 300,000 BB+ Best Buy Co., Inc., 2.250% due 1/15/22 (a).................. 312,000 1,500,000 BB+ The Gap, Inc., 5.750% due 3/15/09........................... 2,023,125 J.C. Penney Co. Inc.: 1,150,000 BB- 5.000% due 10/15/08....................................... 1,125,563 750,000 BB- 5.000% due 10/15/08 (a)................................... 734,062 - ------------------------------------------------------------------------------------------------- 4,194,750 - ------------------------------------------------------------------------------------------------- SEMICONDUCTORS -- 0.2% 100,000 AA- DuPont Photomasks, Inc., zero coupon due 7/24/04............ 99,000 - -------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 4 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 CONVERTIBLE SECURITIES PORTFOLIO
FACE AMOUNT RATING(C) SECURITY VALUE - ------------------------------------------------------------------------------------------------- TELECOMMUNICATIONS -- 6.1% Anixter International Inc.: $2,295,000 BB+ Zero coupon due 6/28/20................................... $ 743,006 400,000 BB+ Zero coupon due 6/28/20 (a)............................... 129,500 2,700,000 BBB- Cox Communications Inc., 0.426% due 4/19/20................. 1,360,125 100,000 NR Tekelec, 2.250% due 6/15/08 (a)............................. 97,625 2,000,000 A+ Verizon Global Funding Corp., zero coupon due 5/15/21....... 1,200,000 - ------------------------------------------------------------------------------------------------- 3,530,256 - ------------------------------------------------------------------------------------------------- TOTAL CONVERTIBLE BONDS AND NOTES (Cost -- $36,693,691)..... 37,079,401 - ------------------------------------------------------------------------------------------------- FACE AMOUNT SECURITY VALUE - ------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 2.1% 1,216,000 State Street Bank and Trust Co., 1.000% due 7/1/03; Proceeds at maturity -- $1,216,034; (Fully collateralized by Federal National Mortgage Association Notes, 5.500% due 2/15/06; Market value -- $1,245,141) (Cost -- $1,216,000)................. 1,216,000 - ------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost -- $59,074,222**)......... $58,291,690 - -------------------------------------------------------------------------------------------------
(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. (b) Non-income producing security. (c) All ratings are by Standard & Poor's Ratings Service, except for those which are identified by an asterisk (*), are rated by Moody's Investors Service. (d) Security is currently in default. ** Aggregate cost for Federal income tax purposes is substantially the same. See page 16 for definitions of ratings. SEE NOTES TO FINANCIAL STATEMENTS. 5 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS MID CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------------------------- COMMON STOCK -- 97.3% - ---------------------------------------------------------------------------------------- AEROSPACE AND DEFENSE -- 0.3% 9,900 Alliant Techsystems Inc.+................................... $ 513,909 - ---------------------------------------------------------------------------------------- AIR FREIGHT AND COURIERS -- 1.0% 44,800 Expeditors International of Washington, Inc. ............... 1,551,872 - ---------------------------------------------------------------------------------------- AIRLINES -- 0.8% 28,900 JetBlue Airways Corp.+...................................... 1,222,181 - ---------------------------------------------------------------------------------------- BIOTECHNOLOGY -- 7.2% 14,200 Affymetrix, Inc.+........................................... 279,882 11,490 Biogen, Inc.+............................................... 436,620 25,500 Celgene Corp.+.............................................. 775,200 61,940 Genzyme Corp. -- General Division+.......................... 2,589,092 21,200 Gilead Sciences, Inc.+...................................... 1,178,296 15,100 ICOS Corp.+................................................. 554,925 56,900 IDEC Pharmaceuticals Corp.+................................. 1,934,600 38,920 Invitrogen Corp.+........................................... 1,493,360 54,440 MedImmune, Inc.+............................................ 1,979,983 - ---------------------------------------------------------------------------------------- 11,221,958 - ---------------------------------------------------------------------------------------- COMMERCIAL SERVICES AND SUPPLIES -- 7.9% 14,100 Apollo Group, Inc., Class A Shares+......................... 870,816 110,720 The BISYS Group, Inc.+...................................... 2,033,926 45,300 ChoicePoint Inc.+........................................... 1,563,756 51,900 DST Systems, Inc.+.......................................... 1,972,200 45,100 Manpower Inc. .............................................. 1,672,759 20,200 Monster Worldwide Inc.+..................................... 398,546 24,400 Paychex, Inc. .............................................. 715,164 40,800 Robert Half International Inc.+............................. 772,752 52,790 Weight Watchers International, Inc.+........................ 2,401,417 - ---------------------------------------------------------------------------------------- 12,401,336 - ---------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT -- 1.4% 20,900 ADTRAN, Inc.+............................................... 1,071,961 65,700 Advanced Fibre Communications, Inc.+........................ 1,068,939 600 Scientific-Atlanta, Inc. ................................... 14,304 - ---------------------------------------------------------------------------------------- 2,155,204 - ---------------------------------------------------------------------------------------- COMPUTERS AND PERIPHERALS -- 0.5% 41,500 Apple Computer, Inc.+....................................... 793,480 - ---------------------------------------------------------------------------------------- CONTAINERS AND PACKAGING -- 0.4% 41,900 Smurfit-Stone Container Corp.+.............................. 545,957 - ---------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 5.0% 12,600 Affiliated Managers Group, Inc.+............................ 767,970 106,200 Ameritrade Holding Corp.+................................... 786,942 55,800 E*TRADE Group, Inc.+........................................ 474,300 80,000 Investors Financial Services Corp. ......................... 2,320,800 12,700 Legg Mason, Inc. ........................................... 824,865
SEE NOTES TO FINANCIAL STATEMENTS. 6 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS MID CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 5.0% (CONTINUED) 26,000 Lehman Brothers Holdings Inc. .............................. $ 1,728,480 13,800 T. Rowe Price Group Inc. ................................... 520,950 16,400 Waddell & Reed Financial, Inc. ............................. 420,988 - ---------------------------------------------------------------------------------------- 7,845,295 - ---------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 0.0% 570 Reliant Resources, Inc.+.................................... 3,494 - ---------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT -- 1.3% 13,200 Energizer Holdings, Inc.+................................... 414,480 70,500 Rockwell Automation, Inc. .................................. 1,680,720 - ---------------------------------------------------------------------------------------- 2,095,200 - ---------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT AND INSTRUMENTS -- 4.6% 74,500 Millipore Corp.+............................................ 3,305,565 37,600 Thermo Electron Corp.+...................................... 790,352 108,350 Waters Corp.+............................................... 3,156,236 - ---------------------------------------------------------------------------------------- 7,252,153 - ---------------------------------------------------------------------------------------- ENERGY EQUIPMENT AND SERVICES -- 4.8% 45,600 Baker Hughes Inc. .......................................... 1,530,792 58,770 BJ Services Co.+............................................ 2,195,647 26,260 Cooper Cameron Corp.+....................................... 1,322,979 58,100 GlobalSantaFe Corp. ........................................ 1,356,054 1,500 Noble Corp.+................................................ 51,450 30,300 Smith International, Inc.+.................................. 1,113,222 - ---------------------------------------------------------------------------------------- 7,570,144 - ---------------------------------------------------------------------------------------- FOOD PRODUCTS -- 1.0% 21,600 Hershey Foods Corp. ........................................ 1,504,656 - ---------------------------------------------------------------------------------------- HEALTHCARE EQUIPMENT AND SUPPLIES -- 4.8% 40,900 Apogent Technologies Inc.+.................................. 818,000 200,200 Cytyc Corp.+................................................ 2,106,104 71,200 DENTSPLY International Inc. ................................ 2,912,080 38,700 Guidant Corp.+.............................................. 1,717,893 - ---------------------------------------------------------------------------------------- 7,554,077 - ---------------------------------------------------------------------------------------- HEALTHCARE PROVIDERS AND SERVICES -- 4.6% 24,000 AmerisourceBergen Corp. .................................... 1,664,400 127,070 Caremark Rx, Inc.+.......................................... 3,263,158 53,800 Health Management Associates, Inc., Class A Shares.......... 992,610 61,100 Tenet Healthcare Corp.+..................................... 711,815 57,400 WebMD Corp.+................................................ 621,642 - ---------------------------------------------------------------------------------------- 7,253,625 - ---------------------------------------------------------------------------------------- HOTELS, RESTAURANTS AND LEISURE -- 5.6% 23,900 The Cheesecake Factory Inc.+................................ 857,771 19,400 Four Seasons Hotels, Inc. .................................. 839,244 35,700 MGM MIRAGE+................................................. 1,220,226
SEE NOTES TO FINANCIAL STATEMENTS. 7 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS MID CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------------------------- HOTELS, RESTAURANTS AND LEISURE -- 5.6% (CONTINUED) 66,080 Outback Steakhouse, Inc. ................................... $ 2,577,120 54,300 Royal Caribbean Cruises Ltd. ............................... 1,257,588 37,180 Starbucks Corp.+............................................ 911,654 39,930 Starwood Hotels & Resorts Worldwide, Inc. .................. 1,141,599 - ---------------------------------------------------------------------------------------- 8,805,202 - ---------------------------------------------------------------------------------------- INSURANCE -- 0.9% 21,900 Arthur J. Gallagher & Co. .................................. 595,680 26,700 Willis Group Holdings Ltd.+................................. 821,025 - ---------------------------------------------------------------------------------------- 1,416,705 - ---------------------------------------------------------------------------------------- INTERNET SOFTWARE AND SERVICES -- 2.5% 2,600 Digex, Inc., Class A Shares+................................ 1,196 38,500 Expedia, Inc., Class A Shares+.............................. 2,940,630 27,700 Yahoo! Inc.+................................................ 907,452 - ---------------------------------------------------------------------------------------- 3,849,278 - ---------------------------------------------------------------------------------------- IT CONSULTING AND SERVICES -- 2.0% 76,100 BearingPoint, Inc.+......................................... 734,365 500 Gartner Group Inc., Class A Shares+......................... 3,790 94,290 SunGard Data Systems Inc.+.................................. 2,443,054 - ---------------------------------------------------------------------------------------- 3,181,209 - ---------------------------------------------------------------------------------------- LEISURE EQUIPMENT AND PRODUCTS -- 0.1% 4,400 Mattel, Inc. ............................................... 83,248 - ---------------------------------------------------------------------------------------- MACHINERY -- 1.0% 25,100 ITT Industries, Inc. ....................................... 1,643,046 - ---------------------------------------------------------------------------------------- MEDIA -- 12.6% 27,020 The E.W. Scripps Co., Class A Shares........................ 2,397,214 96,330 EchoStar Communications Corp., Class A Shares+.............. 3,334,943 32,590 Entercom Communications Corp.+.............................. 1,597,236 18,200 Getty Images, Inc.+......................................... 751,660 42,600 Hearst-Argyle Television, Inc.+............................. 1,103,340 43,900 InterActiveCorp+............................................ 1,737,123 13,500 Lin TV Corp., Class A Shares+............................... 317,925 22,320 The McGraw-Hill Cos., Inc. ................................. 1,383,840 29,760 Meredith Corp. ............................................. 1,309,440 9,690 The New York Times Co., Class A Shares...................... 440,895 33,000 Tribune Co. ................................................ 1,593,900 49,160 Univision Communications Inc., Class A Shares+.............. 1,494,464 68,760 Westwood One, Inc.+......................................... 2,333,027 - ---------------------------------------------------------------------------------------- 19,795,007 - ---------------------------------------------------------------------------------------- MULTI-LINE RETAIL -- 1.1% 46,200 Family Dollar Stores, Inc. ................................. 1,762,530 - ----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 8 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS MID CAP GROWTH PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------------------------- PHARMACEUTICALS -- 2.6% 14,640 InterMune, Inc.+............................................ $ 235,850 18,500 Medicis Pharmaceutical Corp.+............................... 1,048,950 52,085 Mylan Laboratories Inc. .................................... 1,810,995 18,340 Teva Pharmaceutical Industries Ltd., Sponsored ADR.......... 1,044,096 - ---------------------------------------------------------------------------------------- 4,139,891 - ---------------------------------------------------------------------------------------- ROAD AND RAIL -- 0.6% 27,200 Swift Transportation Co., Inc.+............................. 506,464 18,800 Werner Enterprises, Inc. ................................... 398,560 - ---------------------------------------------------------------------------------------- 905,024 - ---------------------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS -- 7.4% 453,400 Agere Systems Inc.+......................................... 1,042,820 86,300 Altera Corp.+............................................... 1,415,320 67,640 Analog Devices, Inc.+....................................... 2,355,225 76,500 ASM International N.V., NY Registered Shares+............... 731,340 38,000 Lam Research Corp.+......................................... 691,980 36,280 Maxim Integrated Products, Inc. ............................ 1,240,413 35,060 Microchip Technology Inc. .................................. 863,528 71,890 Novellus Systems, Inc.+..................................... 2,632,684 26,600 Xilinx, Inc.+............................................... 673,246 - ---------------------------------------------------------------------------------------- 11,646,556 - ---------------------------------------------------------------------------------------- SOFTWARE -- 6.5% 62,800 Amdocs Ltd.+................................................ 1,507,200 123,440 BEA Systems, Inc.+.......................................... 1,340,558 20,150 Mercury Interactive Corp.+.................................. 777,992 144,400 Network Associates, Inc.+................................... 1,830,992 25,340 Symantec Corp.+............................................. 1,111,412 127,610 VERITAS Software Corp.+..................................... 3,658,579 - ---------------------------------------------------------------------------------------- 10,226,733 - ---------------------------------------------------------------------------------------- SPECIALTY RETAIL -- 6.4% 117,570 Office Depot, Inc.+......................................... 1,705,941 106,640 PETsMART, Inc.+............................................. 1,777,689 75,700 The Talbots, Inc. .......................................... 2,229,365 74,900 Tiffany & Co. .............................................. 2,447,732 67,200 The TJX Cos., Inc. ......................................... 1,266,048 22,200 Williams-Sonoma, Inc.+...................................... 648,240 - ---------------------------------------------------------------------------------------- 10,075,015 - ---------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES -- 2.4% 282,110 American Tower Corp., Class A Shares+....................... 2,496,674 207,400 Sprint Corp. (PCS Group)+................................... 1,192,550 - ---------------------------------------------------------------------------------------- 3,689,224 - ---------------------------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $131,456,760)................... 152,703,209 - ----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 9 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS MID CAP GROWTH PORTFOLIO
FACE AMOUNT SECURITY VALUE - ---------------------------------------------------------------------------------------- SHORT-TERM INVESTMENT -- 2.7% $ 4,236,000 Federal Home Loan Bank, Discount Notes, zero coupon bond due 7/1/03 (Cost -- $4,236,000)...................................... $ 4,236,000 - ---------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost -- $135,692,760*)......... $156,939,209 - ----------------------------------------------------------------------------------------
+ Non-income producing security. * Aggregate cost for Federal income tax purposes is substantially the same. Abbreviation used in this schedule: ADR -- American Depositary Receipt SEE NOTES TO FINANCIAL STATEMENTS. 10 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS RESEARCH PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------- COMMON STOCK -- 90.9% - ----------------------------------------------------------------------------------------- AEROSPACE AND DEFENSE -- 1.2% 26,400 Lockheed Martin Corp. ...................................... $ 1,255,848 - ----------------------------------------------------------------------------------------- BANKS -- 9.2% 34,250 Bank of America Corp. ...................................... 2,706,778 24,000 Bank One Corp. ............................................. 892,320 21,000 Banknorth Group, Inc. ...................................... 535,920 19,090 Charter One Financial, Inc. ................................ 595,226 48,840 FleetBoston Financial Corp. ................................ 1,451,036 57,200 Mellon Financial Corp. ..................................... 1,587,300 7,720 SouthTrust Corp. ........................................... 209,984 27,100 SunTrust Banks, Inc. ....................................... 1,608,114 12,200 TCF Financial Corp. ........................................ 486,048 - ----------------------------------------------------------------------------------------- 10,072,726 - ----------------------------------------------------------------------------------------- BEVERAGES -- 3.1% 19,000 Anheuser-Busch Cos., Inc. .................................. 969,950 52,900 PepsiCo, Inc. .............................................. 2,354,050 - ----------------------------------------------------------------------------------------- 3,324,000 - ----------------------------------------------------------------------------------------- BIOTECHNOLOGY -- 4.4% 30,750 Amgen, Inc.+................................................ 2,043,030 22,800 Genentech, Inc.+............................................ 1,644,336 26,000 Genzyme Corp. - General Division+........................... 1,086,800 - ----------------------------------------------------------------------------------------- 4,774,166 - ----------------------------------------------------------------------------------------- BUILDING PRODUCTS -- 0.2% 3,700 American Standard Cos. Inc.+................................ 273,541 - ----------------------------------------------------------------------------------------- CHEMICALS -- 2.0% 7,100 Air Products & Chemicals, Inc. ............................. 295,360 36,600 The Dow Chemical Co. ....................................... 1,133,136 19,000 Lyondell Chemical Co. ...................................... 257,070 7,550 Praxair, Inc. .............................................. 453,755 - ----------------------------------------------------------------------------------------- 2,139,321 - ----------------------------------------------------------------------------------------- CONTAINERS AND PACKAGING -- 1.1% 95,300 Smurfit-Stone Container Corp.+.............................. 1,241,759 - ----------------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 6.7% 40,820 Fannie Mae.................................................. 2,752,901 28,160 Freddie Mac................................................. 1,429,683 18,300 The Goldman Sachs Group, Inc. .............................. 1,532,625 11,400 MBNA Corp. ................................................. 237,576 29,100 Merrill Lynch & Co., Inc. .................................. 1,358,388 - ----------------------------------------------------------------------------------------- 7,311,173 - -----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 11 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS RESEARCH PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.5% 8,900 CenturyTel, Inc. ........................................... $ 310,165 61,400 Verizon Communications Inc. ................................ 2,422,230 - ----------------------------------------------------------------------------------------- 2,732,395 - ----------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 1.5% 5,900 Dominion Resources, Inc. ................................... 379,193 12,900 PG&E Corp.+................................................. 272,835 7,900 Public Service Enterprise Group Inc. ....................... 333,775 30,100 TXU Corp. .................................................. 675,745 - ----------------------------------------------------------------------------------------- 1,661,548 - ----------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT AND INSTRUMENTS -- 0.1% 2,400 Waters Corp.+............................................... 69,912 - ----------------------------------------------------------------------------------------- ENERGY EQUIPMENT AND SERVICES -- 2.2% 27,780 GlobalSantaFe Corp. ........................................ 648,385 16,900 Halliburton Co. ............................................ 388,700 12,800 Noble Corp.+................................................ 439,040 18,900 Schlumberger Ltd. .......................................... 899,073 - ----------------------------------------------------------------------------------------- 2,375,198 - ----------------------------------------------------------------------------------------- FOOD AND DRUG RETAILING -- 1.2% 53,200 The Kroger Co.+............................................. 887,376 13,500 Walgreen Co. ............................................... 406,350 - ----------------------------------------------------------------------------------------- 1,293,726 - ----------------------------------------------------------------------------------------- FOOD PRODUCTS -- 0.8% 24,500 Kellogg Co. ................................................ 842,065 - ----------------------------------------------------------------------------------------- HEALTHCARE EQUIPMENT AND SUPPLIES -- 1.2% 24,000 Baxter International, Inc. ................................. 624,000 16,200 Guidant Corp.+.............................................. 719,118 - ----------------------------------------------------------------------------------------- 1,343,118 - ----------------------------------------------------------------------------------------- HEALTHCARE PROVIDERS AND SERVICES -- 1.5% 9,800 Caremark Rx, Inc.+.......................................... 251,664 14,700 Lincare Holdings Inc.+...................................... 463,197 81,700 Tenet Healthcare Corp.+..................................... 951,805 - ----------------------------------------------------------------------------------------- 1,666,666 - ----------------------------------------------------------------------------------------- HOTELS, RESTAURANTS AND LEISURE -- 1.9% 9,400 CEC Entertainment Inc.+..................................... 347,142 28,600 Hilton Hotels Corp. ........................................ 365,794 11,700 MGM MIRAGE+................................................. 399,906 18,500 Starwood Hotels & Resorts Worldwide, Inc., Class B Shares... 528,915 14,600 Yum! Brands, Inc.+.......................................... 431,576 - ----------------------------------------------------------------------------------------- 2,073,333 - ----------------------------------------------------------------------------------------- HOUSEHOLD DURABLES -- 0.3% 12,700 Newell Rubbermaid Inc. ..................................... 355,600 - -----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 12 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS RESEARCH PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS -- 2.2% 26,500 The Procter & Gamble Co. ................................... $ 2,363,270 - ----------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES -- 1.3% 7,260 3M Co. ..................................................... 936,395 26,500 Tyco International Ltd. .................................... 502,970 - ----------------------------------------------------------------------------------------- 1,439,365 - ----------------------------------------------------------------------------------------- INSURANCE -- 5.2% 38,200 ACE Ltd. ................................................... 1,309,878 12,100 The Chubb Corp. ............................................ 726,000 32,550 MetLife, Inc. .............................................. 921,816 25,010 The St. Paul Cos., Inc. .................................... 913,115 27,900 Willis Group Holdings Ltd. ................................. 857,925 11,500 XL Capital Ltd., Class A Shares............................. 954,500 - ----------------------------------------------------------------------------------------- 5,683,234 - ----------------------------------------------------------------------------------------- IT CONSULTING AND SERVICES -- 0.8% 31,600 SunGard Data Systems Inc.+.................................. 818,756 - ----------------------------------------------------------------------------------------- MACHINERY -- 0.6% 14,600 Deere & Co. ................................................ 667,220 - ----------------------------------------------------------------------------------------- MEDIA -- 6.4% 92,700 AOL Time Warner, Inc.+...................................... 1,491,543 14,800 Clear Channel Communications, Inc.+......................... 627,372 35,990 EchoStar Communications Corp., Class A Shares+.............. 1,245,974 4,300 Getty Images, Inc.+......................................... 177,590 13,800 Lamar Advertising Co.+...................................... 485,898 11,500 The New York Times Co., Class A Shares...................... 523,250 18,500 Tribune Co. ................................................ 893,550 36,078 Viacom Inc., Class B Shares+................................ 1,575,165 - ----------------------------------------------------------------------------------------- 7,020,342 - ----------------------------------------------------------------------------------------- MULTI-LINE RETAIL -- 5.2% 14,500 Kohl's Corp.+............................................... 745,010 40,100 Target Corp. ............................................... 1,517,384 62,680 Wal-Mart Stores, Inc. ...................................... 3,364,036 - ----------------------------------------------------------------------------------------- 5,626,430 - ----------------------------------------------------------------------------------------- OIL AND GAS -- 4.2% 14,600 ConocoPhillips.............................................. 800,080 5,300 Devon Energy Corp. ......................................... 283,020 17,920 Equitable Resources, Inc. .................................. 730,061 78,142 Exxon Mobil Corp. .......................................... 2,806,079 - ----------------------------------------------------------------------------------------- 4,619,240 - ----------------------------------------------------------------------------------------- PAPER AND FOREST PRODUCTS -- 1.2% 7,000 Bowater Inc. ............................................... 262,150 30,100 International Paper Co. .................................... 1,075,473 - ----------------------------------------------------------------------------------------- 1,337,623 - -----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 13 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS RESEARCH PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------- PHARMACEUTICALS -- 12.8% 75,700 Abbott Laboratories......................................... $ 3,312,632 54,400 Johnson & Johnson........................................... 2,812,480 84,025 Pfizer Inc. ................................................ 2,869,454 123,200 Schering-Plough Corp. ...................................... 2,291,520 57,700 Wyeth....................................................... 2,628,235 - ----------------------------------------------------------------------------------------- 13,914,321 - ----------------------------------------------------------------------------------------- ROAD AND RAIL -- 0.5% 9,000 Union Pacific Corp. ........................................ 522,180 - ----------------------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS -- 0.9% 16,220 Analog Devices, Inc.+....................................... 564,780 12,100 Novellus Systems, Inc.+..................................... 443,114 - ----------------------------------------------------------------------------------------- 1,007,894 - ----------------------------------------------------------------------------------------- SOFTWARE -- 3.8% 99,800 Microsoft Corp. ............................................ 2,555,878 27,400 Network Associates, Inc.+................................... 347,432 40,530 Oracle Corp.+............................................... 487,171 25,500 VERITAS Software Corp.+..................................... 731,085 - ----------------------------------------------------------------------------------------- 4,121,566 - ----------------------------------------------------------------------------------------- SPECIALTY RETAIL -- 1.7% 54,800 The Home Depot, Inc. ....................................... 1,814,976 - ----------------------------------------------------------------------------------------- TEXTILES AND APPAREL -- 0.3% 9,100 Liz Claiborne, Inc. ........................................ 320,775 - ----------------------------------------------------------------------------------------- TOBACCO -- 2.2% 51,900 Altria Group, Inc. ......................................... 2,358,336 - ----------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES -- 0.5% 100,500 Sprint Corp. (PCS Group)+................................... 577,875 - ----------------------------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $94,829,326).................... 99,019,498 - ----------------------------------------------------------------------------------------- FOREIGN STOCK -- 5.4% - ----------------------------------------------------------------------------------------- CANADA -- 1.3% 21,500 Encana Corp. ............................................... 819,878 12,600 Talisman Energy Inc. ....................................... 571,566 - ----------------------------------------------------------------------------------------- 1,391,444 - ----------------------------------------------------------------------------------------- FRANCE -- 0.4% 3,400 Total S.A. ................................................. 514,668 - ----------------------------------------------------------------------------------------- NETHERLANDS -- 1.0% 51,300 STMicroelectronics N.V., NY Registered Shares............... 1,066,527 - ----------------------------------------------------------------------------------------- SWITZERLAND -- 0.5% 2,491 Nestle S.A. ................................................ 515,119 - -----------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 14 - -------------------------------------------------------------------------------- SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003 MFS RESEARCH PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------------------------------- UNITED KINGDOM -- 2.2% 191,200 BHP Billiton PLC............................................ $ 1,008,151 71,397 BP PLC...................................................... 495,946 33,700 Rio Tinto Ltd. ............................................. 635,011 33,800 Unilever PLC................................................ 269,563 - ----------------------------------------------------------------------------------------- 2,408,671 - ----------------------------------------------------------------------------------------- TOTAL FOREIGN STOCK (Cost -- $5,687,585).................... 5,896,429 - -----------------------------------------------------------------------------------------
FACE AMOUNT SECURITY VALUE - ----------------------------------------------------------------------------------------- SHORT-TERM INVESTMENT -- 3.7% $3,996,000 Federal Home Loan Bank, Discount Notes, zero coupon bond due 7/1/03 (Cost -- $3,996,000)............................... 3,996,000 - ----------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost -- $104,512,911*)......... $108,911,927 - -----------------------------------------------------------------------------------------
+ Non-income producing security. * Aggregate cost for Federal income tax purposes is substantially the same. SEE NOTES TO FINANCIAL STATEMENTS. 15 - -------------------------------------------------------------------------------- BOND RATINGS (UNAUDITED) The definitions of the applicable rating symbols are set forth below: Standard & Poor's Ratings Service ("Standard & Poor's") -- Ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standings within the major rating categories. AAA -- Bonds rated "AAA" have the highest rating assigned by S&P to a debt obligation. Capacity to pay interest and repay principal is extremely strong. AA -- Bonds rated "AA" have a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in a small degree. A -- Bonds rated "A" have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than for bonds in higher rated categories. BB, B and CCC -- Bonds rated "BB", "B" and "CCC" are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. "BB" represents a lower degree of speculation than "B", and "CCC" the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.
Moody's Investors Service ("Moody's") -- Numerical modifiers 1, 2, and 3 may be applied to each generic rating from "Aa" to "Caa", where 1 is the highest and 3 the lowest rating within its generic category. Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edge." Interest payments are protected by a large or by an exceptionally stable margin, and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of these bonds. Aa -- Bonds rated "Aa" are judged to be of the high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities, or fluctuation of protective elements may be of greater amplitude, or there may be other elements present that make the long-term risks appear somewhat larger than in Aaa securities. A -- Bonds rated "A" possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment some time in the future. Baa -- Bonds rated "Baa" are considered to be medium grade obligations; that is they are neither highly protected nor poorly secured. Interest payment and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. These bonds lack outstanding investment characteristics and may have speculative characteristics as well. Ba -- Bonds rated "Ba" are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and thereby may not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B -- Bonds rated "B" generally lack characteristics of desirable investments. Assurance of interest and principal payment or of maintenance of other terms of the contract over any long period of time may be small. Caa -- Bonds rated "Caa" are of poor standing. These issues may be in default, or present elements of danger may exist with respect to principal or interest. Ca and C -- Bonds rated "Ca" and "C" represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings. NR -- Indicates that the bond is not rated by Standard & Poor's or Moody's.
16 - -------------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 2003
MFS CONVERTIBLE MID CAP MFS SECURITIES GROWTH RESEARCH PORTFOLIO PORTFOLIO PORTFOLIO - ------------------------------------------------------------------------------------------------------- ASSETS: Investments, at cost...................................... $59,074,222 $135,692,760 $104,512,911 - ------------------------------------------------------------------------------------------------------- Investments, at value..................................... $58,291,690 $156,939,209 $108,911,927 Cash...................................................... 88 311 548 Receivable for securities sold............................ 1,243,029 2,472,925 487,587 Dividends and interest receivable......................... 231,087 34,348 149,460 Receivable for Fund shares sold........................... 97,877 -- -- - ------------------------------------------------------------------------------------------------------- TOTAL ASSETS.............................................. 59,863,771 159,446,793 109,549,522 - ------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for securities purchased.......................... 1,175,000 1,508,192 783,084 Payable for Fund shares purchased......................... 30,048 13,113 18,729 Investment advisory fees payable.......................... 28,775 103,748 64,604 Administration fees payable............................... 2,877 7,781 13,214 Payable for open forward foreign currency contracts (Note 5)...................................................... -- -- 802 Accrued expenses.......................................... 20,689 47,342 37,044 - ------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES......................................... 1,257,389 1,680,176 917,477 - ------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS............................................ $58,606,382 $157,766,617 $108,632,045 ======================================================================================================= NET ASSETS: Paid-in capital........................................... $60,607,021 $401,145,077 $193,852,271 Undistributed net investment income....................... 1,130,743 -- 469,455 Accumulated net investment loss........................... -- (310,930) -- Accumulated net realized loss from investment transactions............................................ (2,348,850) (264,314,103) (90,090,350) Net unrealized appreciation (depreciation) of investments and foreign currencies.................................. (782,532) 21,246,573 4,400,669 - ------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS............................................ $58,606,382 $157,766,617 $108,632,045 ======================================================================================================= SHARES OUTSTANDING.......................................... 5,255,575 26,561,301 15,196,651 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, PER SHARE.................................. $11.15 $5.94 $7.15 - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 17 - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2003
MFS CONVERTIBLE MID CAP MFS SECURITIES GROWTH RESEARCH PORTFOLIO PORTFOLIO PORTFOLIO - ----------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest.................................................. $ 698,719 $ 35,517 $ 26,260 Dividends................................................. 596,116 317,663 925,095 Less: Foreign withholding tax............................. -- (5,777) (12,293) - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME................................... 1,294,835 347,403 939,062 - ----------------------------------------------------------------------------------------------------- EXPENSES: Investment advisory fees (Note 2)......................... 157,232 559,612 410,089 Administration fees (Note 2).............................. 15,723 41,971 30,757 Audit and legal........................................... 10,855 14,145 14,411 Custody................................................... 7,518 20,362 21,195 Shareholder communications................................ 3,778 12,373 13,252 Trustees' fees............................................ 2,787 2,270 2,610 Shareholder servicing fees................................ 2,488 2,484 2,479 Other..................................................... 208 4,498 975 - ----------------------------------------------------------------------------------------------------- TOTAL EXPENSES............................................ 200,589 657,715 495,768 - ----------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS)................................ 1,094,246 (310,312) 443,294 - ----------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES (NOTES 3 AND 5): Realized Loss From: Investment transactions................................. (360,747) (2,156,775) (4,485,669) Foreign currency transactions........................... -- (618) (606) - ----------------------------------------------------------------------------------------------------- NET REALIZED LOSS......................................... (360,747) (2,157,393) (4,486,275) - ----------------------------------------------------------------------------------------------------- Change in Net Unrealized Appreciation (Depreciation) From: Investments............................................. 6,881,042 26,897,034 13,511,767 Foreign currencies...................................... -- 119 (371) - ----------------------------------------------------------------------------------------------------- CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION)...... 6,881,042 26,897,153 13,511,396 - ----------------------------------------------------------------------------------------------------- NET GAIN ON INVESTMENTS AND FOREIGN CURRENCIES.............. 6,520,295 24,739,760 9,025,121 - ----------------------------------------------------------------------------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS...................... $7,614,541 $24,429,448 $ 9,468,415 =====================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 18 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2003
MFS CONVERTIBLE MID CAP MFS SECURITIES GROWTH RESEARCH PORTFOLIO PORTFOLIO PORTFOLIO - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss).............................. $ 1,094,246 $ (310,312) $ 443,294 Net realized loss......................................... (360,747) (2,157,393) (4,486,275) Change in net unrealized appreciation (depreciation)...... 6,881,042 26,897,153 13,511,396 - ------------------------------------------------------------------------------------------------------- INCREASE IN NET ASSETS FROM OPERATIONS.................... 7,614,541 24,429,448 9,468,415 - ------------------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 6): Net proceeds from sale of shares.......................... 7,441,385 4,766,649 931,596 Cost of shares reacquired................................. (5,271,031) (9,650,608) (7,778,335) - ------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS................................. 2,170,354 (4,883,959) (6,846,739) - ------------------------------------------------------------------------------------------------------- INCREASE IN NET ASSETS...................................... 9,784,895 19,545,489 2,621,676 NET ASSETS: Beginning of period....................................... 48,821,487 138,221,128 106,010,369 - ------------------------------------------------------------------------------------------------------- END OF PERIOD*............................................ $58,606,382 $157,766,617 $108,632,045 ======================================================================================================= * Note: Includes undistributed net investment income of:.......... $1,130,743 -- $469,455 - ------------------------------------------------------------------------------------------------------- Includes accumulated net investment loss of:.............. -- $(310,930) -- =======================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 19 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2002
MFS CONVERTIBLE MID CAP MFS SECURITIES GROWTH RESEARCH PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss).............................. $ 2,129,705 $ (1,066,424) $ 591,918 Net realized loss......................................... (1,887,243) (206,726,742) (38,917,113) Change in net unrealized appreciation (depreciation)...... (4,052,465) 69,770,853 (1,621,852) - --------------------------------------------------------------------------------------------------------- DECREASE IN NET ASSETS FROM OPERATIONS.................... (3,810,003) (138,022,313) (39,947,047) - --------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income..................................... (3,673,756) -- (745,864) Net realized gains........................................ (328,641) -- -- - --------------------------------------------------------------------------------------------------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS............................................ (4,002,397) -- (745,864) - --------------------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 6): Net proceeds from sale of shares.......................... 16,726,051 21,659,027 3,400,629 Net asset value of shares issued for reinvestment of dividends............................................... 4,002,397 -- 745,864 Cost of shares reacquired................................. (14,450,595) (23,919,477) (23,370,733) - --------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS............................................ 6,277,853 (2,260,450) (19,224,240) - --------------------------------------------------------------------------------------------------------- DECREASE IN NET ASSETS...................................... (1,534,547) (140,282,763) (59,917,151) NET ASSETS: Beginning of year......................................... 50,356,034 278,503,891 165,927,520 - --------------------------------------------------------------------------------------------------------- END OF YEAR*.............................................. $ 48,821,487 $ 138,221,128 $106,010,369 ========================================================================================================= * Includes undistributed net investment income of:.......... $36,497 -- $26,767 =========================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 20 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES The Convertible Securities, MFS Mid Cap Growth and MFS Research Portfolios ("Fund(s)") are separate investment funds of The Travelers Series Trust ("Trust"). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company and consists of these Funds and thirteen other separate investment funds: Travelers Quality Bond, Lazard International Stock, MFS Emerging Growth, Federated High Yield, Federated Stock, Disciplined Mid Cap Stock, U.S. Government Securities, Social Awareness Stock, Pioneer Fund, formerly known as Utilities, Large Cap, Equity Income, Zero Coupon Bond Fund (Series 2005) and MFS Value Portfolios. Shares of the Trust are offered only to insurance company separate accounts that fund certain variable annuity and variable life insurance contracts. The financial statements and financial highlights for the other funds are presented in separate shareholder reports. The Funds and the other investment funds of the Trust are offered exclusively for use with certain variable annuity and variable life insurance contracts offered through the separate accounts of various affiliated life insurance companies. The significant accounting policies consistently followed by the Funds are: (a) security transactions are accounted for on trade date; (b) securities traded on national securities markets are valued at the closing price on such markets or, if there were no sales during the day, at the mean between the closing bid and asked prices; securities primarily traded on foreign exchanges are generally valued at the closing values of such securities on their respective exchanges, except that when a significant occurrence exists subsequent to the time a value was so established and it is likely to have significantly changed the value, then the fair value of those securities will be determined by consideration of other factors by or under the direction of the Board of Trustees; securities listed on the NASDAQ National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price on that day, at the last sale price; securities traded in the over-the-counter market are valued at prices based on market quotations for securities of similar type; U.S. government agencies and obligations are valued at the mean between the last reported bid and asked prices; (c) securities maturing within 60 days are valued at cost plus accreted discount or minus amortized premium, which approximates value; (d) securities, other than U.S. government agencies, that have a maturity of 60 days or more are valued at prices based on market quotations for securities of similar type, yield and maturity; (e) interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis and dividend income is recorded on the ex-dividend date; foreign dividends are recorded on the ex-dividend date or as soon as practical after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence; (f) gains or losses on the sale of securities are calculated by using the specific identification method; (g) dividends and distributions to shareholders are recorded on the ex-dividend date; the Funds distribute dividends and capital gains, if any, at least annually; (h) the accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Differences between income or expense amounts recorded and collected or paid are adjusted when reported by the custodian bank; (i) the Funds intend to comply with the requirements of the Internal Revenue Code of 1986, as amended, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes; (j) the character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America; and (k) estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. In addition, the MFS Mid Cap Growth and MFS Research Portfolios may enter into forward exchange contracts in order to hedge against foreign currency risk. These contracts are marked to market daily, by recognizing the difference between the contract exchange rate and the current forward rate as an unrealized gain or loss. Realized gains or losses are recognized when the contracts are settled or offset by entering into another forward exchange contract. 2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS Travelers Asset Management International Company LLC ("TAMIC"), an indirect wholly-owned subsidiary of Citigroup Inc. ("Citigroup"), acts as investment adviser to the Convertible Securities ("CS"), MFS Mid Cap Growth ("MMCG") and MFS Research ("MRP") Portfolios. CS, MMCG, and MRP each pay TAMIC an investment advisory fee calculated at annual rates of 0.60%, 0.80% and 0.80%, respectively. These fees are calculated daily and paid monthly. 21 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) TAMIC has entered into a sub-advisory agreement with Massachusetts Financial Services ("MFS"). Pursuant to each sub-advisory agreement, MFS is responsible for the day-to-day fund operations and investment decisions for MMCG and MRP. As a result, TAMIC pays MFS a sub-advisory fee at an annual rate of 0.375% of the average daily net assets of MMCG and MRP. The Travelers Insurance Company ("TIC"), another indirect wholly-owned subsidiary of Citigroup, acts as administrator to the Funds. The Funds pay TIC an administration fee calculated at an annual rate of 0.06% of the average daily net assets of each Fund. This fee is calculated daily and paid monthly. TIC has entered into a sub-administrative service agreement with Smith Barney Fund Management LLC ("SBFM"), another indirect wholly-owned subsidiary of Citigroup. TIC pays SBFM, as sub-administrator, a fee calculated at an annual rate of 0.06% of the average daily net assets of the Funds. Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the Funds' transfer agent. CTB receives account fees and asset-based fees that vary according to the size and type of account. For the six months ended June 30, 2003, each Fund paid transfer agent fees of $2,500 to CTB. For the six months ended June 30, 2003, Citigroup Global Markets Inc., formerly known as Salomon Smith Barney Inc., another indirect wholly-owned subsidiary of Citigroup, did not receive any brokerage commissions from the Funds. One Trustee and all officers of the Trust are employees of Citigroup or its subsidiaries. 3. INVESTMENTS During the six months ended June 30, 2003, the aggregate costs of purchases and proceeds from sales of investments (including maturities of long-term investments, but excluding short-term investments), were as follows:
PURCHASES SALES - ---------------------------------------------------------------------------------------- Convertible Securities Portfolio............................ $14,948,702 $11,571,088 MFS Mid Cap Growth Portfolio................................ 62,929,451 67,857,242 MFS Research Portfolio...................................... 43,875,999 49,439,591 - ----------------------------------------------------------------------------------------
At June 30, 2003, the aggregate gross unrealized appreciation and depreciation of investments for Federal income tax purposes were substantially as follows:
NET UNREALIZED APPRECIATION APPRECIATION DEPRECIATION (DEPRECIATION) - ----------------------------------------------------------------------------------------------------------- Convertible Securities Portfolio............................ $ 3,253,131 $ (4,035,663) $ (782,532) MFS Mid Cap Growth Portfolio................................ 24,358,804 (3,112,355) 21,246,449 MFS Research Portfolio...................................... 7,957,781 (3,558,765) 4,399,016 - -----------------------------------------------------------------------------------------------------------
4. REPURCHASE AGREEMENTS The Funds purchase (and the custodian takes possession of) U.S. government securities from securities dealers subject to agreements to resell the securities to the sellers at a future date (generally, the next business day) at an agreed-upon higher repurchase price. The Funds require continual maintenance of the market value (plus accrued interest) of the collateral in amounts at least equal to the repurchase price. At June 30, 2003, MMCG and MRP did not have any repurchase agreements outstanding. 5. FORWARD FOREIGN CURRENCY CONTRACTS MMCG and MRP may enter into forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished or offset. The Fund bears the market risk that arises from changes in foreign currency exchange rates and the credit risk should a counterparty be unable to meet the terms of such contracts. 22 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) At June 30, 2003, MRP had open foreign currency contracts as described below. The unrealized loss on the contracts reflected in the accompanying financial statements were as follows: MFS RESEARCH PORTFOLIO
LOCAL MARKET SETTLEMENT UNREALIZED FOREIGN CURRENCY CURRENCY VALUE DATE LOSS - ------------------------------------------------------------------------------------------------------- CONTRACTS TO BUY: Canadian Dollar......................................... 6,170 $ 4,551 7/2/03 $ (31) Canadian Dollar......................................... 6,160 4,544 7/3/03 (31) - ------------------------------------------------------------------------------------------------------- (62) - ------------------------------------------------------------------------------------------------------- CONTRACTS TO SELL: British Pound........................................... 127,471 210,696 7/2/03 (740) - ------------------------------------------------------------------------------------------------------- Net Unrealized Loss on Open Forward Foreign Currency Contracts.................................... $(802) =======================================================================================================
At June 30, 2003, MMCG did not have any open forward foreign currency contracts. 6. SHARES OF BENEFICIAL INTEREST The Declaration of Trust authorizes the issuance of an unlimited number of shares of beneficial interest without par value. Transactions in shares of each Fund were as follows:
SIX MONTH ENDED YEAR ENDED JUNE 30, 2003 DECEMBER 31, 2002 - ----------------------------------------------------------------------------------------------------- CONVERTIBLE SECURITIES PORTFOLIO Shares sold................................................. 710,087 1,574,176 Shares issued on reinvestment............................... -- 413,531 Shares reacquired........................................... (504,550) (1,386,512) - ----------------------------------------------------------------------------------------------------- Net Increase................................................ 205,537 601,195 ===================================================================================================== MFS MID CAP GROWTH PORTFOLIO Shares sold................................................. 888,025 3,032,958 Shares reacquired........................................... (1,864,912) (3,875,252) - ----------------------------------------------------------------------------------------------------- Net Decrease................................................ (976,887) (842,294) ===================================================================================================== MFS RESEARCH PORTFOLIO Shares sold................................................. 137,543 439,734 Shares issued on reinvestment............................... -- 113,691 Shares reacquired........................................... (1,192,901) (3,216,184) - ----------------------------------------------------------------------------------------------------- Net Decrease................................................ (1,055,358) (2,662,759) =====================================================================================================
7. SUBSEQUENT EVENT On July 25, 2003, the Board of Trustees of The Travelers Series Trust: MFS Research Portfolio approved a new sub-advisory agreement for the Fund. Subject to shareholder approval, the new sub-advisory agreement replaces Massachusetts Financial Services, as sub-advisor, with Merrill Lynch Investment Manager L.P. 23 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
CONVERTIBLE SECURITIES PORTFOLIO 2003(1) 2002(2) 2001(2) 2000(2) 1999(2) 1998(3) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD.............................. $ 9.67 $11.32 $12.06 $11.69 $ 9.86 $10.00 - ------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS: Net investment income(4)(5)......... 0.21 0.45 0.47 0.58 0.46 0.22 Net realized and unrealized gain (loss)(5)........................ 1.27 (1.26) (0.56) 0.85 1.38 (0.12) - ------------------------------------------------------------------------------------------------------------- Total Income (Loss) From Operations... 1.48 (0.81) (0.09) 1.43 1.84 0.10 - ------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS FROM: Net investment income............... -- (0.77) (0.21) (0.25) -- (0.22) Net realized gains.................. -- (0.07) (0.44) (0.81) (0.01) (0.02) - ------------------------------------------------------------------------------------------------------------- Total Distributions................... -- (0.84) (0.65) (1.06) (0.01) (0.24) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD........ $11.15 $ 9.67 $11.32 $12.06 $11.69 $ 9.86 - ------------------------------------------------------------------------------------------------------------- TOTAL RETURN(6)....................... 15.31%++ (6.99)% (0.82)% 12.51% 18.70% 0.98%++ - ------------------------------------------------------------------------------------------------------------- NET ASSETS, END OF PERIOD (000'S)..... $58,606 $48,821 $50,356 $26,294 $11,238 $4,617 - ------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS: Expenses(4)(7)...................... 0.77%+ 0.80% 0.79% 0.80% 0.80% 0.80%+ Net investment income(5)............ 4.18+ 4.36 3.95 4.76 4.33 4.31+ - ------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE............... 23% 46% 56% 48% 79% 7% =============================================================================================================
(1) For the six months ended June 30, 2003 (unaudited). (2) Per share amounts have been calculated using the monthly average shares method. (3) For the period May 1, 1998 (commencement of operations) to December 31, 1998. (4) The Travelers Insurance Company has agreed to reimburse the Fund for expenses in the amounts of $6,833, $18,530, $32,000 and $24,996 for the years ended December 31, 2002, December 31, 2000, December 31, 1999 and the period ended December 31, 1998, respectively. If such expenses were not reimbursed, the per share decreases to net investment income and the actual expense ratios would have been as follows:
DECREASES TO NET EXPENSE RATIOS WITHOUT INVESTMENT INCOME PER SHARE EXPENSE REIMBURSEMENTS ------------------------------ ------------------------------- 2002 2000 1999 1998 2002 2000 1999 1998 ------ ----- ----- ----- ------ ----- ----- ------ Convertible Securities Portfolio $0.00* $0.01 $0.05 $0.05 0.81% 0.90% 1.23% 1.86%+
(5) Effective January 1, 2001, the Fund adopted a change in the accounting method that requires the Fund to amortize premiums and accrete all discounts. Without the adoption of this change, for the year ended December 31, 2001, the ratio of net investment income to average net assets would have been 3.99%. Per share information, ratios and supplemental data for the periods prior to January 1, 2001 have not been restated to reflect this change in presentation. In addition, the impact of this change to net investment income and net realized an unrealized loss was less than $0.01 per share. (6) Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be reduced. (7) As a result of a voluntary expense limitation, the ratio of expenses to average net assets will not exceed 0.80%. * Amount represents less than $0.01 per share. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 24 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
MFS MID CAP GROWTH PORTFOLIO 2003(1) 2002(2) 2001(2) 2000(2) 1999(2) 1998(2)(3) - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD.......... $5.02 $9.81 $16.75 $16.43 $10.05 $10.00 - ------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS: Net investment loss(4)...................... (0.01) (0.04) (0.06) (0.05) (0.04) (0.02) Net realized and unrealized gain (loss)..... 0.93 (4.75) (3.90) 1.69 6.46 0.07 - ------------------------------------------------------------------------------------------------------------------- Total Income (Loss) From Operations........... 0.92 (4.79) (3.96) 1.64 6.42 0.05 - ------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS FROM: Net realized gains.......................... -- -- (2.98) (1.32) (0.04) -- - ------------------------------------------------------------------------------------------------------------------- Total Distributions........................... -- -- (2.98) (1.32) (0.04) -- - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD................ $5.94 $5.02 $ 9.81 $16.75 $16.43 $10.05 - ------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(5)............................... 18.33%++ (48.83)% (23.62)% 9.29% 64.17% 0.50%++ - ------------------------------------------------------------------------------------------------------------------- NET ASSETS, END OF PERIOD (000'S)............. $157,767 $138,221 $278,504 $314,150 $94,124 $13,234 - ------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS: Expenses(4)(6).............................. 0.94%+ 0.93% 0.92% 0.90% 1.00% 1.00%+ Net investment loss......................... (0.44)+ (0.56) (0.49) (0.30) (0.33) (0.25)+ - ------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE....................... 46% 167% 96% 143% 162% 100% ===================================================================================================================
(1) For the six months ended June 30, 2003 (unaudited). (2) Per share amounts have been calculated using the monthly average shares method. (3) For the period March 23, 1998 (commencement of operations) to December 31, 1998. (4) The Travelers Insurance Company has agreed to reimburse the Fund for the expenses in the amounts of $27,304 and $32,634 for the year ended December 31, 1999 and the period ended December 31, 1998, respectively. If such expenses were not reimbursed, the increases to net investment loss and the actual expense ratios would have been as follows:
INCREASES TO NET EXPENSE RATIOS WITHOUT INVESTMENT LOSS PER SHARE EXPENSE REIMBURSEMENTS -------------------------- --------------------------- 1999 1998 1999 1998 ----- ----- ----- ------ MFS Mid Cap Growth Portfolio $0.01 $0.04 1.07% 1.62%+
(5) Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be reduced. (6) As a result of a voluntary expense limitation, the ratio of expenses to average net assets will not exceed 1.00%. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 25 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
MFS RESEARCH PORTFOLIO 2003(1) 2002(2) 2001(2) 2000(2) 1999(2) 1998(3) - ------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD.......... $6.52 $8.77 $12.15 $13.06 $10.56 $10.00 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) FROM OPERATIONS: Net investment income (loss)(4)............. 0.03 0.03 0.01 (0.01) 0.00* 0.01 Net realized and unrealized gain (loss)..... 0.60 (2.23) (2.74) (0.70) 2.50 0.57 - ------------------------------------------------------------------------------------------------------------------ Total Income (Loss) From Operations........... 0.63 (2.20) (2.73) (0.71) 2.50 0.58 - ------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS FROM: Net investment income....................... -- (0.05) (0.00)* -- -- (0.02) Net realized gains.......................... -- -- (0.65) (0.20) -- -- Capital..................................... -- -- -- -- -- (0.00)* - ------------------------------------------------------------------------------------------------------------------ Total Distributions........................... -- (0.05) (0.65) (0.20) -- (0.02) - ------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD................ $7.15 $6.52 $ 8.77 $12.15 $13.06 $10.56 - ------------------------------------------------------------------------------------------------------------------ TOTAL RETURN(5)............................... 9.66%++ (25.14)% (22.45)% (5.58)% 23.67% 5.77%++ - ------------------------------------------------------------------------------------------------------------------ NET ASSETS, END OF PERIOD (000'S)............. $108,632 $106,010 $165,928 $222,953 $152,073 $37,870 - ------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS: Expenses(4)(6).............................. 0.97%+ 0.94% 0.92% 0.94% 0.99% 1.00%+ Net investment income (loss)................ 0.86+ 0.44 0.10 (0.07) 0.02 0.42+ - ------------------------------------------------------------------------------------------------------------------ PORTFOLIO TURNOVER RATE....................... 44% 104% 98% 86% 85% 54% ==================================================================================================================
(1) For the six months ended June 30, 2003 (unaudited). (2) Per share amounts have been calculated using the monthly average shares method. (3) For the period March 23, 1998 (commencement of operations) to December 31, 1998. (4) The Travelers Insurance Company has agreed to reimburse the Fund for expenses in the amount of $41,049 for the period ended December 31, 1998. If such expenses were not reimbursed, the per share decrease to net investment income and the actual annualized expense ratio would have been $0.01 and 1.37%, respectively. (5) Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be reduced. (6) As a result of a voluntary expense limitation, the ratio of expenses (excluding interest expense) to average net assets will not exceed 1.00%. * Amount represents less than $0.01 per share. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 26 (This page intentionally left blank.) (This page intentionally left blank.) THE TRAVELERS SERIES TRUST - -------------------------------------------------------------------------------- TRUSTEES INVESTMENT ADVISER R. Jay Gerken, CFA Travelers Asset Management International Company LLC Chairman Frances M. Hawk, CFA, CPA Lewis Mandell Robert E. McGill ADMINISTRATOR OFFICERS The Travelers Insurance Company R. Jay Gerken, CFA President and Chief Executive Officer CUSTODIAN Lewis E. Daidone State Street Bank and Trust Company Senior Vice President and Chief Administrative Officer Richard L. Peteka TRANSFER AGENT Chief Financial Officer and Treasurer Citicorp Trust Bank, fsb. Kaprel Ozsolak Controller Ernest J. Wright Secretary Kathleen A. McGah Assistant Secretary
The Funds are separate investment funds of The Travelers Series Trust, a Massachusetts business trust. This report is prepared for the general information of contract owners and is not an offer of shares of The Travelers Series Trust: Convertible Securities, MFS Mid Cap Growth and MFS Research Portfolios. It should not be used in connection with any offer except in conjunction with the Prospectuses for the Variable Annuity and Variable Universal Life Insurance products offered by The Travelers Insurance Company or The Travelers Life and Annuity Company and the Prospectuses for the underlying funds, which collectively contain all pertinent information, including the applicable sales commissions. Series Trust (Semi-Annual) (8-03) Printed in U.S.A. 03-4964 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document. (b) In the last 90 days, there have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls. ITEM 10. EXHIBITS. (a) Not applicable. (b) Attached hereto. Exhibit 99.CERT Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized. The Travelers Series Trust By: /s/ R. Jay Gerken R. Jay Gerken Chief Executive Officer of The Travelers Series Trust Date: August 28, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ R. Jay Gerken (R. Jay Gerken) Chief Executive Officer of The Travelers Series Trust Date: August 28, 2003 By: /s/ Richard L. Peteka (Richard L. Peteka) Chief Financial Officer of The Travelers Series Trust Date: August 28, 2003 EX-99.CERT 3 y88628exv99wcert.txt CERTIFICATIONS CERTIFICATIONS PURSUANT TO SECTION 302 EX-99.CERT CERTIFICATIONS I, R. Jay Gerken, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- Convertible Securities Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ R. Jay Gerken ---------------------- ----------------------------------- R. Jay Gerken Chief Executive Officer I, Richard Peteka, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- Convertible Securities Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ Richard Peteka ---------------------- ---------------------------------- Richard Peteka Chief Financial Officer CERTIFICATIONS PURSUANT TO SECTION 302 EX-99.CERT CERTIFICATIONS I, R. Jay Gerken, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- MFS Mid Cap Growth Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ R. Jay Gerken ---------------------- ----------------------------------- R. Jay Gerken Chief Executive Officer I, Richard Peteka, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- MFS Mid Cap Growth Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ Richard Peteka ---------------------- -------------------------------------- Richard Peteka Chief Financial Officer CERTIFICATIONS PURSUANT TO SECTION 302 EX-99.CERT CERTIFICATIONS I, R. Jay Gerken, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- MFS Research Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ R. Jay Gerken ---------------------- ----------------------------------- R. Jay Gerken Chief Executive Officer I, Richard Peteka, certify that: 1. I have reviewed this report on Form N-CSRS of The Travelers Series Trust -- MFS Research Portfolio; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ Richard Peteka ---------------------- -------------------------------------- Richard Peteka Chief Financial Officer EX-99.906CERT 4 y88628exv99w906cert.txt 906 CERTIFICATIONS CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Richard Peteka, Chief Financial Officer of The Travelers Series Trust -- Convertible Securities Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSRS for the period ended June 30, 2003 (the "Form N-CSRS") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Financial Officer The Travelers Series Trust The Travelers Series Trust Convertible Securities Portfolio Convertible Securities Portfolio /s/ R. Jay Gerken /s/ Richard Peteka - ----------------------------- ------------------------ R. Jay Gerken Richard Peteka Date: August 28, 2003 Date: August 28, 2003 This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with the Commission. CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Richard Peteka, Chief Financial Officer of The Travelers Series Trust -- MFS Mid Cap Growth Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSRS for the period ended June 30, 2003 (the "Form N-CSRS") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Financial Officer The Travelers Series Trust The Travelers Series Trust MFS Mid Cap Growth Portfolio MFS Mid Cap Growth Portfolio /s/ R. Jay Gerken /s/ Richard Peteka - ----------------------------- ------------------------ R. Jay Gerken Richard Peteka Date: August 28, 2003 Date: August 28, 2003 This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with the Commission. CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Richard Peteka, Chief Financial Officer of The Travelers Series Trust -- MFS Research Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSRS for the period ended June 30, 2003 (the "Form N-CSRS") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Financial Officer The Travelers Series Trust The Travelers Series Trust MFS Research Portfolio MFS Research Portfolio /s/ R. Jay Gerken /s/ Richard Peteka - ----------------------------- ------------------------ R. Jay Gerken Richard Peteka Date: August 28, 2003 Date: August 28, 2003 This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----