N-CSR 1 dncsr.txt S/B TRAVELERS SERIES FUND INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-8372 Travelers Series Fund Inc. (Exact name of registrant as specified in charter) 125 Broad Street, New York, NY 10004 (Address of principal executive offices) (Zip code) Christina T. Sydor, Esq. 300 First Stamford Place Stamford, CT 06902 (Name and address of agent for service) Registrant's telephone number, including area code: (800) 451-2010 Date of fiscal year end: October 31 Date of reporting period: April 30, 2003 ITEM 1. REPORT TO STOCKHOLDERS. The Semi-Annual Report to Stockholders is filed herewith. -------------------------------------------------- TRAVELERS SERIES FUND INC. SMITH BARNEY LARGE CAP VALUE PORTFOLIO ALLIANCE GROWTH PORTFOLIO VAN KAMPEN ENTERPRISE PORTFOLIO -------------------------------------------------- SEMI-ANNUAL REPORT | APRIL 30, 2003 -------------------------------------------------------- NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE -------------------------------------------------------- WHAT'S INSIDE Letter From the Chairman.................................................... 1 Schedules of Investments.................................................... 2 Statements of Assets and Liabilities........................................ 13 Statements of Operations.................................................... 14 Statements of Changes in Net Assets......................................... 15 Notes to Financial Statements............................................... 18 Financial Highlights........................................................ 24
LETTER FROM THE CHAIRMAN [PHOTO] R. JAY GERKEN R. JAY GERKEN Chairman, President and Chief Executive Officer Dear Shareholder, The philosopher Bertrand Russell famously remarked that, "Change is one thing, progress is another." You will notice in the following pages that we have begun to implement some changes to your shareholder report and we will be reflecting other changes in future reports. Our aim is to make meaningful improvements in reporting on the management of your Fund and its performance, not just to enact change for change's sake. Please bear with us during this transition period. I invite you to read this report in full. Please take the opportunity to talk to your financial adviser about this report or any other questions or concerns you have about your Fund and your financial future. As always, thank you for entrusting your assets to us. We look forward to helping you continue to meet your financial goals. Sincerely, /s/ R. Jay Gerken R. Jay Gerken Chairman, President and Chief Executive Officer May 27, 2003 1 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) APRIL 30, 2003 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE -------------------------------------------------------------------------------- COMMON STOCK -- 98.0% Banks -- 19.0% 30,000 Bank of America Corp. $ 2,221,500 120,000 Comercia, Inc. 5,221,200 115,025 HSBC Holdings PLC, Sponsored ADR 6,290,717 84,127 Mellon Financial Corp. 2,225,159 200,000 State Street Corp. 7,006,000 145,000 SunTrust Banks, Inc. 8,296,900 175,000 U.S. Bancorp 3,876,250 240,000 Washington Mutual, Inc. 9,480,000 235,500 Wells Fargo & Co. 11,365,230 180,000 Zions Bancorporation 8,868,600 -------------------------------------------------------------------------------- 64,851,556 -------------------------------------------------------------------------------- Capital Goods -- 9.2% 71,300 Danaher Corp. 4,918,274 80,100 Emerson Electric Co. 4,061,070 330,000 General Electric Co. 9,718,500 180,000 Honeywell International Inc. 4,248,000 74,400 Illinois Tool Works Inc. 4,760,112 80,000 Masco Corp. 1,685,600 33,000 United Technologies Corp. 2,039,730 -------------------------------------------------------------------------------- 31,431,286 -------------------------------------------------------------------------------- Consumer Cyclicals -- 7.9% 520,000 Cendant Corp.* 7,425,600 50,000 Federated Department Stores, Inc. 1,531,000 200,000 Ford Motor Co. 2,060,000 153,000 The Interpublic Group of Cos., Inc.. 1,744,200 239,100 J.C. Penney Co., Inc. 4,079,046 106,000 The McGraw-Hill Cos., Inc. 6,189,340 60,000 Omnicom Group Inc. 3,714,000 -------------------------------------------------------------------------------- 26,743,186 -------------------------------------------------------------------------------- Consumer Staples -- 4.8% 185,000 Altria Group, Inc. 5,690,600 96,000 Kimberly-Clark Corp. 4,777,920 185,000 Kraft Foods Inc. 5,716,500 -------------------------------------------------------------------------------- 16,185,020 -------------------------------------------------------------------------------- Energy -- 7.7% 165,000 ChevronTexaco Corp. 10,363,650 450,000 Exxon Mobil Corp. 15,840,000 -------------------------------------------------------------------------------- 26,203,650 --------------------------------------------------------------------------------
See Notes to Financial Statements. 2 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE -------------------------------------------------------------------------------- Financial Services - Other -- 9.6% 250,000 American Express Co. $ 9,465,000 180,000 Capital One Financial Corp. 7,536,600 113,000 Fannie Mae 8,180,070 130,000 Freddie Mac 7,527,000 -------------------------------------------------------------------------------- 32,708,670 -------------------------------------------------------------------------------- Healthcare -- 4.1% 39,933 Baxter International Inc. 918,459 261,400 Bristol-Myers Squibb Co. 6,676,156 86,500 CIGNA Corp. 4,523,950 30,000 Merck & Co. Inc. 1,745,400 -------------------------------------------------------------------------------- 13,863,965 -------------------------------------------------------------------------------- Insurance -- 4.2% 76,000 American International Group, Inc. 4,404,200 130,000 The Chubb Corp. 6,875,700 76,200 The Hartford Financial Services Group, Inc. 3,105,912 -------------------------------------------------------------------------------- 14,385,812 -------------------------------------------------------------------------------- Investment Banks and Brokerage Houses -- 8.1% 491,100 J.P. Morgan Chase & Co. 14,413,785 145,000 Merrill Lynch & Co., Inc. 5,952,250 159,300 Morgan Stanley 7,128,675 -------------------------------------------------------------------------------- 27,494,710 -------------------------------------------------------------------------------- Raw and Intermediate Materials -- 6.3% 221,700 Alcoa Inc. 5,083,581 315,000 The Dow Chemical Co. 10,281,600 148,462 Nucor Corp. 6,064,673 -------------------------------------------------------------------------------- 21,429,854 -------------------------------------------------------------------------------- Technology -- 5.6% 50,000 Automatic Data Processing, Inc. 1,681,500 444,076 Comverse Technology, Inc.* 5,804,073 192,100 Electronic Data Systems Corp. 3,486,615 95,000 International Business Machines Corp. 8,065,500 -------------------------------------------------------------------------------- 19,037,688 -------------------------------------------------------------------------------- Telecommunications -- 5.2% 68,000 ALLTEL Corp. 3,186,480 400,000 SBC Communications Inc. 9,344,000 290,000 Sprint Corp. 3,337,900 50,000 Verizon Communications Inc. 1,869,000 -------------------------------------------------------------------------------- 17,737,380 --------------------------------------------------------------------------------
See Notes to Financial Statements. 3 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE --------------------------------------------------------------------------------------------- Transportation -- 2.0% 245,000 Burlington Northern Santa Fe Corp. $ 6,899,200 --------------------------------------------------------------------------------------------- Utilities -- 4.3% 89,000 American Electric Power Co., Inc. 2,347,820 45,000 Consolidated Edison, Inc. 1,749,150 187,000 Duke Energy Corp. 3,289,330 40,000 FPL Group, Inc. 2,434,800 165,000 The Southern Co. 4,799,850 --------------------------------------------------------------------------------------------- 14,620,950 --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $378,937,643) 333,592,927 --------------------------------------------------------------------------------------------- FACE AMOUNT SECURITY VALUE --------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 2.0% $6,788,000 Merrill Lynch & Co., Inc., 1.250% due 5/1/03; Proceeds at maturity -- $6,788,236; (Fully collateralized by various U.S. government agency obligations, 0.000% to 4.875% due 5/9/03 to 11/15/07; Market value -- $6,923,779) (Cost -- $6,788,000) 6,788,000 --------------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100% (Cost -- $385,725,643**) $340,380,927 ---------------------------------------------------------------------------------------------
* Non-income producing security. ** Aggregate cost for Federal income tax purposes is substantially the same. See Notes to Financial Statements. 4 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE ----------------------------------------------------------------------- COMMON STOCK -- 98.9% Biotechnology and Drugs -- 12.1% 118,400 AmerisourceBergen Corp. $ 6,849,440 296,900 Cardinal Health, Inc. 16,412,632 307,600 Express Scripts, Inc., Class A Shares*+ 18,136,096 253,600 Forest Laboratories, Inc.* 13,116,192 10,600 Gilead Sciences, Inc.* 489,084 160,700 Pfizer Inc. 4,941,525 ----------------------------------------------------------------------- 59,944,969 ----------------------------------------------------------------------- Broadcasting and Cable -- 7.5% 661,000 Comcast Corp., Class A Special Shares* 19,869,660 106,900 Cox Communications Inc., Class A Shares* 3,538,390 81,800 EchoStar Communications Corp., Class A Shares*+ 2,450,728 227,023 Viacom Inc., Class B Shares* 9,855,068 46,400 Westwood One, Inc.* 1,619,360 ----------------------------------------------------------------------- 37,333,206 ----------------------------------------------------------------------- Building/Construction -- 5.9% 96,700 Centex Corp. 6,384,134 215,550 D.R. Horton Inc.+ 5,108,535 228,400 Jacobs Engineering Group, Inc.* 9,398,660 85,400 Lennar Corp., Class A Shares+ 4,632,096 8,540 Lennar Corp., Class B Shares+ 457,317 9,400 NVR Inc.*+ 3,362,850 ----------------------------------------------------------------------- 29,343,592 ----------------------------------------------------------------------- Business Services -- 1.6% 196,700 Iron Mountain, Inc.*+ 7,838,495 ----------------------------------------------------------------------- Capital Goods -- 1.6% 109,200 American Standard Cos. Inc.* 7,773,948 ----------------------------------------------------------------------- Consumer Products and Services -- 2.0% 328,990 Newell Rubbermaid Inc. 10,027,615 ----------------------------------------------------------------------- Education -- 3.9% 18,400 Apollo Group, Inc., Class A Shares* 997,262 286,100 Career Education Corp.* 17,203,193 15,100 Strayer Education, Inc.+ 982,104 ----------------------------------------------------------------------- 19,182,559 ----------------------------------------------------------------------- Energy -- 1.9% 162,960 Apache Corp. 9,329,460 ----------------------------------------------------------------------- Financial Services -- 11.0% 331,200 Bank One Corp. 11,939,760 349,200 Legg Mason Inc.+ 18,961,560
See Notes to Financial Statements. 5 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE ---------------------------------------------------------------------------- Financial Services -- 11.0% (continued) 705,493 MBNA Corp. $ 13,333,818 24,400 Merrill Lynch & Co., Inc. 1,001,620 125,700 Morgan Stanley 5,625,075 31,750 SLM Corp. 3,556,000 ---------------------------------------------------------------------------- 54,417,833 ---------------------------------------------------------------------------- Healthcare -- 8.9% 105,400 Boston Scientific Corp.* 4,537,470 994,700 Health Management Associates, Inc., Class A Shares 16,969,582 134,600 Patterson Dental Co.*+ 5,406,882 79,800 St. Jude Medical, Inc.* 4,186,308 191,300 Stryker Corp. 12,819,013 ---------------------------------------------------------------------------- 43,919,255 ---------------------------------------------------------------------------- Insurance -- 12.2% 194,400 AMBAC Financial Group Inc. 11,343,240 424,897 American International Group, Inc. 24,622,781 32,500 Everest Re Group, Ltd. 2,263,625 165,900 WellPoint Health Networks Inc.* 12,598,446 316,600 Willis Group Holdings Ltd.*+ 9,874,754 ---------------------------------------------------------------------------- 60,702,846 ---------------------------------------------------------------------------- Leisure -- 4.0% 444,200 Harley-Davidson, Inc. 19,740,248 ---------------------------------------------------------------------------- Retail -- 8.3% 54,500 Bed Bath & Beyond Inc.* 2,153,295 167,900 CDW Computer Centers Inc.*+ 7,159,256 162,100 eBay Inc.* 15,038,017 292,000 Kohl's Corp.* 16,585,600 ---------------------------------------------------------------------------- 40,936,168 ---------------------------------------------------------------------------- Technology -- 17.2% 74,950 Affiliated Computer Services, Inc., Class A Shares*+ 3,575,115 248,400 Cisco Systems, Inc.* 3,735,936 179,100 Danaher Corp. 12,354,318 370,310 Dell Computer Corp.* 10,705,662 50,160 Flextronics International Ltd.* 438,900 847,700 Juniper Networks, Inc.*+ 8,663,494 123,050 L-3 Communications Holdings, Inc.*+ 5,463,420 148,400 Marvell Technology Group Ltd.*+ 3,424,924 104,100 Maxim Integrated Products, Inc. 4,090,089 77,500 Mercury Interactive Corp.*+ 2,630,350 549,000 Microsoft Corp.* 14,037,930
See Notes to Financial Statements. 6 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE ---------------------------------------------------------------------------------------- Technology -- 17.2% (continued) 116,300 Symantec Corp.* $ 5,111,385 491,500 VERITAS Software Corp.* 10,817,915 ---------------------------------------------------------------------------------------- 85,049,438 ---------------------------------------------------------------------------------------- Transportation -- 0.8% 258,000 Southwest Airlines Co.+ 4,117,680 ---------------------------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $479,949,318) 489,657,312 ---------------------------------------------------------------------------------------- FACE AMOUNT SECURITY VALUE ---------------------------------------------------------------------------------------- AGENCY DISCOUNT NOTES -- 1.1% $5,500,000 Federal National Mortgage Association, Discount Notes due 5/1/03 (Cost -- $5,500,000) 5,500,000 ---------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100% (Cost -- $485,449,318**) $495,157,312 ----------------------------------------------------------------------------------------
* Non-income producing security. + All or a portion of this security is on loan (See Note 5). ** Aggregate cost for Federal income tax purposes is substantially the same. LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE AMOUNT SECURITY VALUE --------------------------------------------------------------------------------------- $53,808,884 State Street Navigator Securities Lending Trust Prime Portfolio (Cost -- $53,808,884) $53,808,884 ---------------------------------------------------------------------------------------
See Notes to Financial Statements. 7 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE ------------------------------------------------------------------------- COMMON STOCK -- 95.5% Automotive -- 0.5% 10,600 Harley-Davidson, Inc. $ 471,064 ------------------------------------------------------------------------- Banking -- 3.3% 10,700 AmSouth Bancorp. 225,235 13,500 Bank of America Corp. 999,675 8,400 Compass Bancshares, Inc. 283,248 8,500 FleetBoston Financial Corp. 225,420 13,000 National City Corp. 389,480 9,500 Regions Financial Corp. 320,245 11,200 U.S. Bancorp 248,080 8,600 Wachovia Corp. 328,606 ------------------------------------------------------------------------- 3,019,989 ------------------------------------------------------------------------- Biotechnology -- 7.0% 6,200 Allergan, Inc. 435,550 39,600 Amgen Inc.* 2,427,876 13,250 Barr Laboratories, Inc.* 736,700 6,000 Biogen, Inc.* 227,940 11,000 Biovail Corp.*+ 397,650 24,300 Gilead Sciences, Inc.* 1,121,202 19,100 MedImmune, Inc.* 673,657 16,200 Mylan Laboratories Inc. 457,974 ------------------------------------------------------------------------- 6,478,549 ------------------------------------------------------------------------- Business Services -- 4.6% 26,200 Affiliated Computer Services, Inc., Class A Shares* 1,249,740 6,800 The Dun & Bradstreet Corp.* 257,040 16,000 Ecolab Inc. 817,440 11,400 Equifax Inc. 264,366 27,400 First Data Corp. 1,074,902 8,200 Fiserv, Inc.* 241,408 9,300 Pitney Bowes Inc. 326,523 ------------------------------------------------------------------------- 4,231,419 ------------------------------------------------------------------------- Consumer Products and Services -- 4.0% 10,200 Avon Products, Inc. 593,334 5,700 The Clorox Co. 257,754 15,700 Johnson & Johnson 1,594,988 13,600 The Procter & Gamble Co. 1,221,960 ------------------------------------------------------------------------- 3,668,036 ------------------------------------------------------------------------- Education -- 0.2% 4,300 Apollo Group, Inc., Class A Shares* 233,056 ------------------------------------------------------------------------- Energy -- 3.8% 14,885 Apache Corp. 852,166 18,800 BJ Services Co.* 686,388
See Notes to Financial Statements. 8 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE -------------------------------------------------------------------------------- Energy -- 3.8% (continued) 10,138 ConocoPhillips $ 509,941 12,200 National Oilwell, Inc.* 256,078 14,300 Smith International, Inc.* 508,508 18,300 Valero Energy Corp. 672,525 -------------------------------------------------------------------------------- 3,485,606 -------------------------------------------------------------------------------- Financial Services -- 6.9% 14,000 American Express Co. 530,040 5,900 The Bear Stearns Cos. Inc. 394,356 6,000 Countrywide Credit Industries, Inc. 405,600 17,700 Fannie Mae 1,281,303 8,900 Federated Investors, Inc., Class B Shares 242,881 9,500 Freddie Mac 550,050 21,350 J.P. Morgan Chase & Co. 626,622 6,000 Lehman Brothers Holdings Inc. 377,820 8,000 Merrill Lynch & Co., Inc. 328,400 5,400 SLM Corp. 604,800 12,600 Washington Mutual, Inc. 497,700 10,300 Wells Fargo & Co. 497,078 -------------------------------------------------------------------------------- 6,336,650 -------------------------------------------------------------------------------- Food and Beverage -- 3.2% 22,800 Anheuser-Busch Cos., Inc. 1,137,264 24,500 Kellogg Co. 802,130 23,300 PepsiCo, Inc. 1,008,424 -------------------------------------------------------------------------------- 2,947,818 -------------------------------------------------------------------------------- Healthcare -- 1.3% 15,700 Alcon, Inc.* 691,585 25,100 Caremark Rx, Inc.* 499,741 -------------------------------------------------------------------------------- 1,191,326 -------------------------------------------------------------------------------- Hotel/Casino/Gaming -- 0.8% 8,600 International Game Technology* 742,180 -------------------------------------------------------------------------------- Insurance -- 5.1% 9,200 Aetna, Inc. 458,160 17,125 American International Group, Inc. 992,394 13,300 Anthem, Inc.* 912,912 7,100 Marsh & McLennan Cos., Inc. 338,528 14,000 MetLife, Inc. 402,220 13,000 SAFECO Corp. 500,630 6,400 UnitedHealth Group, Inc. 589,632 6,200 WellPoint Health Networks, Inc.* 470,828 -------------------------------------------------------------------------------- 4,665,304 --------------------------------------------------------------------------------
See Notes to Financial Statements. 9 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE ------------------------------------------------------------------------ Machinery -- 1.0% 5,100 Eaton Corp. $ 418,557 11,900 Ingersoll-Rand Co., Class A Shares 524,552 ------------------------------------------------------------------------ 943,109 ------------------------------------------------------------------------ Medical Equipment and Supplies -- 2.7% 6,200 Guidant Corp.* 241,738 27,100 Medtronic, Inc. 1,293,754 9,200 St. Jude Medical, Inc.* 482,632 9,600 Zimmer Holdings, Inc.* 450,240 ------------------------------------------------------------------------ 2,468,364 ------------------------------------------------------------------------ Multi-Industry -- 3.6% 3,600 3M Co. 453,744 96,600 General Electric Co. 2,844,870 ------------------------------------------------------------------------ 3,298,614 ------------------------------------------------------------------------ Multi-Media -- 1.3% 8,000 Clear Channel Communications Inc.* 312,880 19,700 Viacom Inc., Class B Shares* 855,177 ------------------------------------------------------------------------ 1,168,057 ------------------------------------------------------------------------ Pharmaceuticals -- 7.0% 11,600 Abbott Laboratories 471,308 19,000 Bristol-Myers Squibb Co. 485,260 9,400 Forest Laboratories, Inc.* 486,168 15,900 Merck & Co., Inc. 925,062 74,350 Pfizer Inc. 2,286,263 14,500 Teva Pharmaceutical Industries Ltd., Sponsored ADR 677,150 25,800 Wyeth 1,123,074 ------------------------------------------------------------------------ 6,454,285 ------------------------------------------------------------------------ Publishing -- 2.3% 7,200 The E.W. Scripps Co. 570,600 11,200 Gannett Co., Inc. 848,064 14,700 The New York Times Co., Class A Shares 681,786 ------------------------------------------------------------------------ 2,100,450 ------------------------------------------------------------------------ Retail -- 11.3% 11,500 Abercrombie & Fitch Co., Class A Shares* 378,120 8,100 AutoZone, Inc.* 654,561 16,800 Bed Bath & Beyond Inc.* 663,768 20,600 Best Buy Co., Inc.* 712,348 14,500 Brinker International, Inc.* 460,375 11,155 CDW Computer Centers, Inc.* 475,649 15,800 Dollar General Corp. 232,824 41,700 The Gap, Inc. 693,471
See Notes to Financial Statements. 10 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE ------------------------------------------------------------------------------ Retail -- 11.3% (continued) 10,100 The Home Depot, Inc. $ 284,113 12,100 Lowe's Cos., Inc. 531,069 11,200 Reebok International Ltd.* 347,872 42,100 Staples, Inc.* 801,584 17,800 Starbucks Corp.* 418,122 19,500 The TJX Cos., Inc. 375,375 59,900 Wal-Mart Stores, Inc. 3,373,568 ------------------------------------------------------------------------------ 10,402,819 ------------------------------------------------------------------------------ Semiconductors -- 4.1% 19,200 Analog Devices, Inc.* 635,904 53,500 Intel Corp. 984,400 7,600 L-3 Communications Holdings, Inc.*+ 337,440 27,000 Lam Research Corp.*+ 392,310 8,000 QLogic Corp.* 351,920 38,700 Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR 323,919 23,600 Texas Instruments Inc. 436,364 12,700 Xilinx, Inc.* 343,789 ------------------------------------------------------------------------------ 3,806,046 ------------------------------------------------------------------------------ Technology -- 19.0% 10,800 Adobe Systems Inc. 373,248 19,800 Amdocs Ltd.* 349,668 65,600 AOL Time Warner Inc.* 897,408 23,400 Autodesk, Inc. 364,104 20,200 Celestica Inc.* 233,512 151,200 Cisco Systems, Inc.* 2,274,048 9,400 Danaher Corp. 648,412 63,700 Dell Computer Corp.* 1,841,567 8,500 Electronic Arts Inc.* 503,795 29,100 EMC Corp.* 264,519 31,400 Flextronics International Ltd.* 274,750 71,100 Hewlett-Packard Co. 1,158,930 15,100 International Business Machines Corp. 1,281,990 8,500 Lexmark International, Inc. 633,335 142,500 Microsoft Corp.* 3,643,725 44,300 Oracle Corp.* 526,284 18,000 PeopleSoft, Inc.* 270,540 12,300 SAP AG, Sponsored ADR 313,773 12,600 Symantec Corp.* 553,770 18,800 VERITAS Software Corp.* 413,788 26,800 Yahoo! Inc.* 664,104 ------------------------------------------------------------------------------ 17,485,270 ------------------------------------------------------------------------------
See Notes to Financial Statements. 11 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2003 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE --------------------------------------------------------------------------------------- Telecommunications -- 1.0% 92,900 AT&T Wireless Services Inc.* $ 600,134 18,600 Nokia Corp., Sponsored ADR 308,202 --------------------------------------------------------------------------------------- 908,336 --------------------------------------------------------------------------------------- Textiles/Apparel -- 1.2% 16,300 Coach, Inc.* 709,213 13,600 Jones Apparel Group, Inc.* 387,872 --------------------------------------------------------------------------------------- 1,097,085 --------------------------------------------------------------------------------------- Transportation -- 0.3% 4,900 United Parcel Service, Inc., Class B Shares 304,920 --------------------------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $86,043,799) 87,908,352 --------------------------------------------------------------------------------------- FACE AMOUNT SECURITY VALUE --------------------------------------------------------------------------------------- AGENCY DISCOUNT NOTES -- 4.5% $4,162,000 Federal National Mortgage Association, Discount Notes due 5/1/03 (Cost -- $4,162,000) 4,162,000 --------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100% (Cost -- $90,205,799**) $92,070,352 ---------------------------------------------------------------------------------------
* Non-income producing security. + All or a portion of this security is on loan (See Note 5). ** Aggregate cost for Federal income tax purposes is substantially the same. Abbreviation used in this schedule: ADR -- American Depositary Receipt LOANED SECURITIES COLLATERAL (UNAUDITED) APRIL 30, 2003
FACE AMOUNT SECURITY VALUE --------------------------------------------------------------------------------------- $836,232 State Street Navigator Securities Lending Trust Prime Portfolio (Cost -- $836,232) $836,232 ---------------------------------------------------------------------------------------
See Notes to Financial Statements. 12 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
Smith Barney Large Cap Alliance Van Kampen Value Growth Enterprise Portfolio Portfolio Portfolio --------------------------------------------------------------------------------------------- ASSETS: Investments, at value (Cost -- $385,725,643, $485,449,318 and $90,205,799, respectively) $340,380,927 $ 495,157,312 $ 92,070,352 Loaned securities collateral, at value (Cost -- $53,808,884 and $836,232, respectively) (Note 5) -- 53,808,884 836,232 Cash 368 10,821 522 Receivable for securities sold -- 3,691,060 1,874,595 Receivable for Fund shares sold -- 524,572 -- Dividends and interest receivable 497,560 16,296 32,946 Other receivables 3,802 45,133 -- -------------------------------------------------------------------------------------------- Total Assets 340,882,657 553,254,078 94,814,647 -------------------------------------------------------------------------------------------- LIABILITIES: Payable for securities on loan (Note 5) -- 53,808,884 836,232 Payable for securities purchased -- 1,551,407 2,061,764 Payable for Fund shares purchased 354,259 42,966 3,705 Management fees payable 174,210 302,968 51,834 Accrued expenses 41,495 63,000 16,874 -------------------------------------------------------------------------------------------- Total Liabilities 569,964 55,769,225 2,970,409 -------------------------------------------------------------------------------------------- Total Net Assets $340,312,693 $ 497,484,853 $ 91,844,238 -------------------------------------------------------------------------------------------- NET ASSETS: Par value of capital shares $ 248 $ 381 $ 96 Capital paid in excess of par value 432,490,155 838,627,565 172,238,298 Undistributed (overdistributed) net investment income 2,512,847 (675,076) 74,778 Accumulated net realized loss from security transactions (49,345,841) (350,176,011) (82,333,487) Net unrealized appreciation (depreciation) of investments (45,344,716) 9,707,994 1,864,553 -------------------------------------------------------------------------------------------- Total Net Assets $340,312,693 $ 497,484,853 $ 91,844,238 -------------------------------------------------------------------------------------------- Shares Outstanding 24,777,105 38,085,231 9,580,318 -------------------------------------------------------------------------------------------- Net Asset Value $13.73 $13.06 $9.59 --------------------------------------------------------------------------------------------
See Notes to Financial Statements. 13 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders STATEMENTS OF OPERATIONS (UNAUDITED) For the Six Months Ended April 30, 2003
Smith Barney Large Cap Alliance Van Kampen Value Growth Enterprise Portfolio Portfolio Portfolio ----------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 4,528,278 $ 916,830 $ 448,378 Interest 147,165 430,284 38,760 Less: Foreign withholding tax -- -- (1,574) ---------------------------------------------------------------------------------- Total Investment Income 4,675,443 1,347,114 485,564 ---------------------------------------------------------------------------------- EXPENSES: Management fees (Note 2) 1,088,693 1,943,054 324,767 Custody 19,910 19,571 14,132 Audit and legal 19,005 16,915 15,680 Shareholder communications 18,100 20,889 5,399 Directors' fees 7,602 7,467 2,434 Shareholder servicing fees 2,715 2,660 2,619 Other 3,982 7,656 2,640 ---------------------------------------------------------------------------------- Total Expenses 1,160,007 2,018,212 367,671 ---------------------------------------------------------------------------------- Net Investment Income (Loss) 3,515,436 (671,098) 117,893 ---------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3): Realized Loss From Security Transactions (excluding short-term securities): Proceeds from sales 43,576,502 106,099,763 54,710,295 Cost of securities sold 51,520,499 146,817,913 64,108,387 ---------------------------------------------------------------------------------- Net Realized Loss (7,943,997) (40,718,150) (9,398,092) ---------------------------------------------------------------------------------- Change in Net Unrealized Appreciation (Depreciation) of Investments: Beginning of period (70,083,246) (49,337,237) (9,411,558) End of period (45,344,716) 9,707,994 1,864,553 ---------------------------------------------------------------------------------- Change in Net Unrealized Appreciation (Depreciation) 24,738,530 59,045,231 11,276,111 ---------------------------------------------------------------------------------- Net Gain on Investments 16,794,533 18,327,081 1,878,019 ---------------------------------------------------------------------------------- Increase in Net Assets From Operations $ 20,309,969 $ 17,655,983 $ 1,995,912 ----------------------------------------------------------------------------------
See Notes to Financial Statements. 14 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders STATEMENTS OF CHANGES IN NET ASSETS For the Six Months Ended April 30, 2003 (unaudited) and the Year Ended October 31, 2002
Smith Barney Large Cap Value Portfolio 2003 2002 --------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 3,515,436 $ 7,406,464 Net realized loss (7,943,997) (39,737,030) (Increase) decrease in net unrealized depreciation 24,738,530 (76,098,584) --------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations 20,309,969 (108,429,150) --------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (8,408,520) (7,859,263) --------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders (8,408,520) (7,859,263) --------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 6): Net proceeds from sale of shares 2,169,985 35,752,411 Net asset value of shares issued for reinvestment of dividends 8,408,520 7,859,263 Cost of shares reacquired (28,573,257) (84,617,623) --------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (17,994,752) (41,005,949) --------------------------------------------------------------------------------- Decrease in Net Assets (6,093,303) (157,294,362) NET ASSETS: Beginning of period 346,405,996 503,700,358 --------------------------------------------------------------------------------- End of period* $340,312,693 $ 346,405,996 --------------------------------------------------------------------------------- * Includes undistributed net investment income of: $2,512,847 $7,405,931 ---------------------------------------------------------------------------------
See Notes to Financial Statements. 15 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the Six Months Ended April 30, 2003 (unaudited) and the Year Ended October 31, 2002
Alliance Growth Portfolio 2003 2002 ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (671,098) $ 1,328,967 Net realized loss (40,718,150) (297,161,941) Increase in net unrealized appreciation 59,045,231 111,121,539 ------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations 17,655,983 (184,711,435) ------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (650,759) (2,925,061) ------------------------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders (650,759) (2,925,061) ------------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 6): Net proceeds from sale of shares 3,348,542 10,626,631 Net asset value of shares issued for reinvestment of dividends 650,759 2,925,061 Cost of shares reacquired (39,236,661) (154,719,589) ------------------------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (35,237,360) (141,167,897) ------------------------------------------------------------------------------------------------- Decrease in Net Assets (18,232,136) (328,804,393) NET ASSETS: Beginning of period 515,716,989 844,521,382 ------------------------------------------------------------------------------------------------- End of period* $497,484,853 $ 515,716,989 ------------------------------------------------------------------------------------------------- * Includes undistributed (overdistributed) net investment income of: $(675,076) $646,781 -------------------------------------------------------------------------------------------------
See Notes to Financial Statements. 16 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the Six Months Ended April 30, 2003 (unaudited) and the Year Ended October 31, 2002
Van Kampen Enterprise Portfolio 2003 2002 --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 117,893 $ 429,129 Net realized loss (9,398,092) (36,235,983) Increase in net unrealized appreciation 11,276,111 8,333,675 -------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations 1,995,912 (27,473,179) -------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (471,638) (417,888) -------------------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders (471,638) (417,888) -------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 6): Net proceeds from sale of shares 255,039 1,052,862 Net asset value of shares issued for reinvestment of dividends 471,638 417,888 Cost of shares reacquired (10,586,689) (38,261,601) -------------------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (9,860,012) (36,790,851) -------------------------------------------------------------------------------------------- Decrease in Net Assets (8,335,738) (64,681,918) NET ASSETS: Beginning of period 100,179,976 164,861,894 -------------------------------------------------------------------------------------------- End of period* $ 91,844,238 $100,179,976 -------------------------------------------------------------------------------------------- * Includes undistributed net investment income of: $74,778 $428,523 --------------------------------------------------------------------------------------------
See Notes to Financial Statements. 17 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. Significant Accounting Policies The Smith Barney Large Cap Value Portfolio, Alliance Growth Portfolio and Van Kampen Enterprise Portfolio, ("Fund(s)") are separate investment funds of the Travelers Series Fund Inc. ("Series"). The Series, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and consists of these Funds and eleven other separate investment funds: AIM Capital Appreciation, Smith Barney International All Cap Growth, Travelers Managed Income, Putnam Diversified Income, Salomon Brothers Total Return Strategic Bond, Smith Barney High Income, MFS Total Return, Smith Barney Money Market, Smith Barney Large Capitalization Growth, Smith Barney Mid Cap Core and Smith Barney Aggressive Growth Portfolios. Shares of the Funds are offered only to insurance company separate accounts which fund certain variable annuity and variable life insurance contracts. The financial statements and financial highlights for the other funds are presented in separate shareholder reports. The significant accounting policies consistently followed by the Funds are: (a) security transactions are accounted for on trade date; (b) securities traded on national securities markets are valued at the closing prices on such markets; securities for which no sales price was reported and U.S. government agencies and obligations are valued at the mean between bid and asked prices; securities listed on the NASDAQ National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price on that day, at the last sale price; (c) securities for which market quotations are not available will be valued in good faith at fair value by or under the direction of the Board of Directors; (d) securities maturing within 60 days are valued at cost plus accreted discount, or minus amortized premium, which approximates value; (e) dividend income is recorded on the ex-dividend date; foreign dividends are recorded on the ex-dividend date or as soon as practical after the Funds determine the existence of a dividend declaration after exercising reasonable due diligence; (f ) interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis; (g) dividends and distributions to shareholders are recorded on the ex-dividend date; the Funds distribute dividends and capital gains, if any, annually; (h) gains or losses on the sale of securities are calculated by using the specific identification method; (i) the accounting records of the Funds are maintained in U.S. dollars. All assets and 18 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, and income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Differences between income or expense amounts recorded and collected or paid are adjusted when reported by the custodian bank; (j) the character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America; (k) the Funds intend to comply with the requirements of the Internal Revenue Code of 1986, as amended, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes; and (l) estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. 2. Management Agreement and Transactions with Affiliated Persons Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary of Citigroup Inc. ("Citigroup"), acts as the investment manager of the Smith Barney Large Cap Value Portfolio ("SBLCV"). In addition, SBLCV pays SBFM a management fee calculated at an annual rate of 0.65% of the average daily net assets of the Fund. Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SBFM, acts as the investment manager of the Alliance Growth Portfolio ("AGP") and the Van Kampen Enterprise Portfolio ("VKEP"). AGP and VKEP pay TIA a management fee calculated at an annual rate of 0.80% and 0.70%, respectively, of the average daily net assets of each Fund. These fees are calculated daily and paid monthly. TIA has entered into sub-advisory agreements with Alliance Capital Management L.P. ("Alliance Capital") and Van Kampen Asset Management, Inc. ("VKAM"). Pursuant to each sub-advisory agreement, Alliance Capital and VKAM are responsible for the day-to-day portfolio operations and investment decisions and are compensated by TIA for such services at an annual rate of 19 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 0.375% and 0.325% of the average daily net assets of AGP and VKEP, respectively. TIA has entered into a sub-administrative services agreement with SBFM. TIA pays SBFM, as sub-administrator, a fee calculated at an annual rate of 0.10% of the average daily net assets of AGP and VKEP. Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the Funds' transfer agent. PFPC Global Fund Services ("PFPC") acts as the Funds' sub-transfer agent. CTB receives account fees and asset-based fees that vary according to the size and type of account. PFPC is responsible for shareholder recordkeeping and financial processing for all shareholder accounts and is paid by CTB. For the six months ended April 30, 2003, each Fund paid transfer agent fees of $2,500 to CTB. For the six months ended April 30, 2003, Citigroup Global Markets Inc. ("CGM"), formerly known as Salomon Smith Barney Inc., another indirect wholly-owned subsidiary of Citigroup, and its affiliates received brokerage commissions of $27,029 and $13,038 from AGP and VKEP, respectively. Most of the officers and one Director of the Series are employees of Citigroup or its affiliates. 3. Investments During the six months ended April 30, 2003, the aggregate cost of purchases and proceeds from sales of investments (including maturities of long-term securities, but excluding short-term securities) were:
SBLCV AGP VKEP ------------------------------------------------------------------------------- Purchases $26,477,863 $ 72,138,297 $44,215,788 ------------------------------------------------------------------------------- Sales 43,576,502 106,099,763 54,710,295 -------------------------------------------------------------------------------
20 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) At April 30, 2003, the aggregate gross unrealized appreciation and depreciation of investments for Federal income tax purposes were substantially as follows:
SBLCV AGP VKEP ----------------------------------------------------------------------------------- Gross unrealized appreciation $ 19,667,536 $ 40,868,551 $ 6,495,304 Gross unrealized depreciation (65,012,252) (31,160,557) (4,630,751) ----------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) $(45,344,716) $ 9,707,994 $ 1,864,553 -----------------------------------------------------------------------------------
4. Repurchase Agreements The Funds purchase (and their 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 of the collateral (plus accrued interest) in amounts at least equal to the repurchase price. At April 30, 2003, AGP and VKEP did not have any repurchase agreements outstanding. 5. Lending of Portfolio Securities SBLCV, AGP and VKEP have an agreement with their custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Fees earned by the Funds on securities lending are recorded as interest income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or high quality money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities, plus a margin depending on the type of securities loaned. The custodian establishes and maintains the collateral in segregated accounts. The Funds maintain exposure for the risk of any losses in the investment of amounts received as collateral. At April 30, 2003, AGP and VKEP had loaned common stocks having a market value of $51,670,155 and $786,938 and received cash collateral amounting to $53,738,794 and $809,405, respectively, which was invested in the State Street Navigator Securities Lending Trust Prime Portfolio. 21 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) For the six months ended April 30, 2003, income earned from securities lending by AGP and VKEP was $33,679 and $1,729, respectively. At April 30, 2003, SBLCV did not have any securities on loan. 6. Capital Shares At April 30, 2003, the Series had six billion shares authorized with a par value of $0.00001 per share. Each share of a Fund represents an equal proportionate interest in that Fund with each other share of the same Fund and has an equal entitlement to any dividends and distributions made by the Fund. Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended April 30, 2003 October 31, 2002 ------------------------------------------------------------------------ Smith Barney Large Cap Value Portfolio Shares sold 164,325 1,988,862 Shares issued on reinvestment 639,431 597,662 Shares reacquired (2,188,750) (5,253,318) ------------------------------------------------------------------------ Net Decrease (1,384,994) (2,666,794) ------------------------------------------------------------------------ Alliance Growth Portfolio Shares sold 275,157 673,389 Shares issued on reinvestment 53,826 232,148 Shares reacquired (3,190,450) (10,631,856) ------------------------------------------------------------------------ Net Decrease (2,861,467) (9,726,319) ------------------------------------------------------------------------ Van Kampen Enterprise Portfolio Shares sold 27,422 86,645 Shares issued on reinvestment 51,942 44,790 Shares reacquired (1,153,737) (3,442,151) ------------------------------------------------------------------------ Net Decrease (1,074,373) (3,310,716) ------------------------------------------------------------------------
22 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders FINANCIAL HIGHLIGHTS For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Smith Barney Large Cap Value Portfolio 2003/(1)/ 2002 2001 2000 1999 1998/(2)/ ------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $13.24 $17.47 $20.74 $19.83 $18.94 $17.90 ----------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income 0.15 0.32 0.26 0.30 0.27 0.31 Net realized and unrealized gain (loss) 0.67 (4.24) (2.56) 1.34 1.38 1.47 ----------------------------------------------------------------------------------------- Total Income (Loss) From Operations 0.82 (3.92) (2.30) 1.64 1.65 1.78 ----------------------------------------------------------------------------------------- Less Distributions From: Net investment income (0.33) (0.31) (0.27) (0.26) (0.24) (0.21) Net realized gains -- -- (0.70) (0.47) (0.52) (0.53) ----------------------------------------------------------------------------------------- Total Distributions (0.33) (0.31) (0.97) (0.73) (0.76) (0.74) ----------------------------------------------------------------------------------------- Net Asset Value, End of Period $13.73 $13.24 $17.47 $20.74 $19.83 $18.94 ----------------------------------------------------------------------------------------- Total Return 6.29%++ (22.45)% (11.58)% 8.62% 8.52% 9.65% ----------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $340 $346 $504 $553 $544 $424 ----------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.69%+ 0.68% 0.67% 0.66% 0.67% 0.68% Net investment income 2.10+ 1.59 1.42 1.45 1.35 1.59 ----------------------------------------------------------------------------------------- Portfolio Turnover Rate 8% 68% 29% 23% 43% 36% -----------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited). (2) Per share amounts have been calculated using the monthly average shares method. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 23 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders FINANCIAL HIGHLIGHTS (CONTINUED) For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Alliance Growth Portfolio 2003/(1)/ 2002 2001 2000 1999 1998 ----------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $12.59 $16.67 $28.63 $28.35 $22.14 $20.82 ---------------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income (loss) (0.02) 0.04 0.07 0.05 0.02 0.11 Net realized and unrealized gain (loss) 0.51 (4.05) (8.60) 2.66 7.79 2.69 ---------------------------------------------------------------------------------------------- Total Income (Loss) From Operations 0.49 (4.01) (8.53) 2.71 7.81 2.80 ---------------------------------------------------------------------------------------------- Less Distributions From: Net investment income (0.02) (0.07) (0.05) (0.03) (0.15) (0.04) Net realized gains -- -- (3.38) (2.40) (1.45) (1.44) ---------------------------------------------------------------------------------------------- Total Distributions (0.02) (0.07) (3.43) (2.43) (1.60) (1.48) ---------------------------------------------------------------------------------------------- Net Asset Value, End of Period $13.06 $12.59 $16.67 $28.63 $28.35 $22.14 ---------------------------------------------------------------------------------------------- Total Return 3.87%++ (24.05)% (32.05)% 9.27% 35.51% 12.92% ---------------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $497 $516 $845 $1,370 $1,166 $775 ---------------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.83%+ 0.83% 0.82% 0.81% 0.82% 0.82% Net investment income (loss) (0.28)+ 0.19 0.31 0.17 0.14 0.59 ---------------------------------------------------------------------------------------------- Portfolio Turnover Rate 15% 100% 46% 47% 54% 40% ----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited). ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 24 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders FINANCIAL HIGHLIGHTS (CONTINUED) For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Van Kampen Enterprise Portfolio 2003/(1)/ 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 9.40 $11.81 $25.60 $25.52 $20.56 $19.89 ----------------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income (loss) 0.01 0.05 0.03 (0.06) 0.00* 0.06 Net realized and unrealized gain (loss) 0.23 (2.42) (9.05) 3.87 5.42 1.83 ----------------------------------------------------------------------------------------------- Total Income (Loss) From Operations 0.24 (2.37) (9.02) 3.81 5.42 1.89 ----------------------------------------------------------------------------------------------- Less Distributions From: Net investment income (0.05) (0.04) (0.00)* (0.00)* (0.07) (0.05) Net realized gains -- -- (4.77) (3.73) (0.39) (1.17) ----------------------------------------------------------------------------------------------- Total Distributions (0.05) (0.04) (4.77) (3.73) (0.46) (1.22) ----------------------------------------------------------------------------------------------- Net Asset Value, End of Period $ 9.59 $ 9.40 $11.81 $25.60 $25.52 $20.56 ----------------------------------------------------------------------------------------------- Total Return 2.53%++ (20.07)% (37.52)% 13.92% 26.48% 8.97% ----------------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $92 $100 $165 $331 $313 $249 ----------------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.79%+ 0.76% 0.74% 0.72% 0.73% 0.73% Net investment income (loss) 0.25+ 0.30 0.18 (0.22) 0.01 0.35 ----------------------------------------------------------------------------------------------- Portfolio Turnover Rate 49% 87% 107% 117% 120% 68% -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2003 (unaudited). * 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. 25 Travelers Series Fund Inc. | 2003 Semi-Annual Report to Shareholders TRAVELERS SERIES FUND INC. DIRECTORS INVESTMENT MANAGERS A. E. Cohen Smith Barney Fund Management LLC Robert A. Frankel Travelers Investment Adviser, Inc. Michael E. Gellert R. Jay Gerken, CUSTODIAN Chairman State Street Bank and Rainer Greeven Trust Company Susan M. Heilbron ANNUITY OFFICERS ADMINISTRATION R. Jay Gerken Travelers Annuity Investor Services President and Chief 5 State House Square Executive Officer 1 Tower Square Hartford, Connecticut 06183 Lewis E. Daidone Senior Vice President and Chief Administrative Officer Richard L. Peteka Chief Financial Officer and Treasurer Giri Bogavelli, CFA Investment Officer Steven Craige, CFA Investment Officer Kaprel Ozsolak Controller Christina T. Sydor Secretary Travelers Series Fund Inc. This report is submitted for the general information of the shareholders of Travelers Series Fund Inc. -- Smith Barney Large Cap Value Portfolio, Alliance Growth Portfolio and Van Kampen Enterprise Portfolio. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current Prospectus for the Funds, which contains information concerning the Funds' investment policies and expenses as well as other pertinent information. TRAVELERS SERIES FUND INC. 125 Broad Street 10th Floor, MF-2 New York, New York 10004 IN0801 6/03 03-4964 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this document. (b) In the last 90 days, there have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls. ITEM 10. EXHIBITS. (a) Not applicable. (b) Attached hereto. Exhibit 99.CERT Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized. Travelers Series Fund Inc. By: /s/ R. Jay Gerken -------------------------------- R. Jay Gerken Chief Executive Officer of Travelers Series Fund Inc. Date: June 27, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ R. Jay Gerken -------------------------------- (R. Jay Gerken) Chief Executive Officer of Travelers Series Fund Inc. Date: June 27, 2003 By: /s/ RICHARD PETEKA -------------------------------- Chief Financial Officer of Travelers Series Fund Inc. Date: June 27, 2003