-----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, QFUP/TN1PGrObZxhVCU/JpD+3t9kkFtzaRLvbIq8tnZ42QyojaKa++nnLuT1Y9Fc 2LcTR2fgwnzrwpFdZfPEQg== 0001193125-04-116018.txt : 20040709 0001193125-04-116018.hdr.sgml : 20040709 20040709113707 ACCESSION NUMBER: 0001193125-04-116018 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040430 FILED AS OF DATE: 20040709 EFFECTIVENESS DATE: 20040709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRAVELERS SERIES FUND INC CENTRAL INDEX KEY: 0000919557 IRS NUMBER: 133767311 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08372 FILM NUMBER: 04907383 BUSINESS ADDRESS: STREET 1: 125 BROAD STREET STREET 2: 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 212-291-2556 MAIL ADDRESS: STREET 1: 125 BROAD STREET STREET 2: 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10004 FORMER COMPANY: FORMER CONFORMED NAME: SMITH BARNEY TRAVELERS SERIES FUND INC DATE OF NAME CHANGE: 19940613 FORMER COMPANY: FORMER CONFORMED NAME: SBA VARIABLE PRODUCTS SERIES FUND INC DATE OF NAME CHANGE: 19940228 N-CSRS 1 dncsrs.txt SMITH BARNEY 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) Robert I. Frenkel, Esq. Smith Barney Fund Management LLC 300 First Stamford Place Stamford, CT 06902 --------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (800) 451-2010 Date of fiscal year end: OCTOBER 31 Date of reporting period: APRIL 30, 2004 ================================================================================ ITEM 1. REPORT TO STOCKHOLDERS. The Semi-Annual Report to Stockholders is filed herewith. TRAVELERS SERIES FUND INC. SMITH BARNEY LARGE CAP VALUE PORTFOLIO STRATEGIC EQUITY PORTFOLIO VAN KAMPEN ENTERPRISE PORTFOLIO SEMI-ANNUAL REPORT | APRIL 30, 2004 -------------------------------------------------------- NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE -------------------------------------------------------- WHAT'S INSIDE Letter from the Chairman............ 1 Schedules of Investments............ 9 Statements of Assets and Liabilities 26 Statements of Operations............ 27 Statements of Changes in Net Assets. 28 Notes to Financial Statements....... 31 Financial Highlights................ 38
LETTER FROM THE CHAIRMAN [PHOTO] R. Jay Gerken R. JAY GERKEN, CFA Chairman, President and Chief Executive Officer Dear Shareholder, Over the six months ended April 30, 2004, most broad U.S. stock and bond market indices posted moderate gains. Stocks generally continued to outpace bonds, with large-capitalization stocks typically outperforming small- and mid-cap stocks, and international stock markets generally outperforming the domestic stock market. The economic environment was dominated by uncertainty surrounding the sustainability of the global economic recovery, a continued focus on new job growth and a geopolitical environment centering on news from Iraq and new acts of terrorism. Since the start of 2004, markets have been in a holding pattern -- volatility declined and returns were relatively muted. Equity markets seem to have priced in prospects of continued economic recovery and, in general, they were not disappointed. Both bond market and stock market participants were a bit unnerved by prospects for U.S. Federal Reserve Board ("Fed") tightening of key interest rates at some unknown future date, the continuing turmoil in Iraq, and the March 2004 bombings in Spain. Each of these elements had a negative influence on the stock market. Despite these concerns, however, the underlying economic and corporate earnings data continued to improve through the end of the period. So far this year, the economy overall has appeared to be growing at a pace similar to last year's rate. The ongoing recovery has been broad-based, with strength in the consumer sector, exports and business investments. Soaring corporate profit growth has led to vastly improved balance-sheet fundamentals in general, while highly stimulative monetary and fiscal policy continued to provide support, although the stimulative effects of fiscal policy could wane after tax-refund season ends this spring. Following a period of mixed employment news through the end of last year, job growth picked up substantially in the first calendar quarter of 2004. Signs of increased inflation have begun to mount in recent weeks. Fiscal and monetary policymakers have been stimulating the economy since 2000. The Fed has suggested that it prefers inflation to deflation in the current environment. However, the recent pickup in inflationary signals has increased the possibility that the Fed may raise interest rates sooner than anticipated, perhaps as early as this summer. In the equity market, stock returns were mixed during the period. 1 Travelers Series Fund Inc. | 2004 Semi-Annual Report The broader market, as measured by the S&P 500 Index, posted strong gains, due to strong corporate earnings, positive economic news and continued low interest rates. However, sluggish job growth, high-energy prices and geopolitical concerns made many investors cautious about some sectors of the market. These conditions benefited some of the more defensive industries, such as consumer staples and utilities, and hampered some of last year's better-performing sectors, such as basic materials. Within this environment, the funds performed as follows on the next page:/1/ /1/The fund is an underlying investment option of various variable annuity products. A variable annuity product is a contract issued by an insurance company where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of securities. Upon retirement, the policyholder is paid according to accumulated units whose dollar value varies according to the performance of the securities within the sub accounts. Its objective is to preserve, through investment, the purchasing value of the annuity, which otherwise is subject to erosion through inflation. The fund's performance returns do not reflect the deduction of initial sales charges and expenses imposed in connection with investing in variable annuity contracts such as administrative fees, account charges and surrender charges, which if reflected, would reduce the performance of the fund. Past performance is no guarantee of future results. 2 Travelers Series Fund Inc. | 2004 Semi-Annual Report PERFORMANCE OF THE FUNDS AS OF APRIL 30, 2004
6 Months Smith Barney Large Cap Value Portfolio 7.77% S&P 500/Barra Value Index/2/ 7.98% S&P 500 Index/3/ 6.27% Lipper Equity Income Variable Funds Category Average/6/ 7.76% Strategic Equity Portfolio (formerly known as Alliance Growth Portfolio) 6.20% S&P 500 Index/3/ 6.27% Russell 1000 Index/4/ 6.11% Lipper Multi-Cap Core Variable Funds Category Average/7/ 4.77% Van Kampen Enterprise Portfolio 0.14% Russell 1000 Growth Index/5/ 4.14% S&P 500 Index/3/ 6.27% Lipper Multi-Cap Core Variable Funds Category Average/7/ 4.77%
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors' shares, when redeemed, may be worth more or less than their original cost. The performance returns set forth above do not reflect the reduction of initial charges and expenses imposed in connection with investing in variable annuity contracts such as administrative fees, account charges and surrender charges, which if reflected, would reduce the performance of the funds. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index. /2/The S&P 500/Barra Value Index is a market-capitalization weighted index of stocks in the S&P 500 having lower price-to-book ratios relative to the S&P 500 Index as a whole. (A price-to-book ratio is the price of a stock compared to the difference between a company's assets and liabilities.) The fund has determined that the S&P 500/Barra Value Index more appropriately reflects the fund's investment strategy and will no longer use the S&P 500 Index as a performance benchmark. /3/The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. /4/The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The fund has determined that the Russell 1000 Index more appropriately reflects the fund's investment strategy and will no longer use the S&P 500 Index as a performance benchmark. /5/The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The fund has determined that the Russell 1000 Growth Index more appropriately reflects the fund's investment strategy and will no longer use the S&P 500 Index as a performance benchmark. Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the six-month period ended April 30, 2004 and include the reinvestment of dividends and capital gains, if any. /6/Returns were calculated among the 633 funds in the equity income variable funds category. /7/Returns were calculated among the 1,154 funds in the multi-cap core variable funds category. 3 Travelers Series Fund Inc. | 2004 Semi-Annual Report Smith Barney Large Cap Value Portfolio Special Shareholder Notice As of July 1, 2003, John B. Cunningham is responsible for the day-to-day management of the fund. Effective June 18, 2003, the fund changed its performance benchmark to the S&P 500/Barra Value Index. The fund will no longer use the S&P 500 Index as a performance benchmark and it will not appear in future reporting. For the six months ended April 30, 2004, shares of the Smith Barney Large Cap Value Portfolio returned 7.77%. In comparison, the fund's unmanaged benchmark, the S&P 500/Barra Value Index,/i/ returned 7.98% and the fund's previous benchmark, the S&P 500 Index,/ii/ returned 6.27%. The fund essentially matched its Lipper equity income variable funds category average, which returned 7.76% for the same period./2/ The fund slightly lagged it's benchmark index, the S&P 500/Barra Value Index, due partly to its greater exposure to healthcare stocks, as the large-cap pharmaceutical group suffered from some industry-specific issues, such as declining product pipelines and the uncertainty of cheaper drug imports from Canada. The fund also suffered from the sub-par performance of some of its investments in consumer discretionary stocks, as some media companies failed to experience an expected increase in advertising revenues/iii/. Strategic Equity Portfolio (formerly known as Alliance Growth Portfolio) Special Shareholder Notice Please note that the fund's sub-adviser changed from Alliance Capital Management L.P. to Fidelity Management & Research Company, effective September 15, 2003. In accordance with this change, the fund's name is now Strategic Equity Portfolio. The fund seeks capital appreciation. The fund normally invests at least 80% of its assets in equity securities. The sub-adviser normally invests the fund's assets primarily in common stocks. The fund may invest in securities of foreign issuers, in addition to securities of domestic issuers. In the future, the fund's performance will be compared to the S&P 500 Index, instead of the Russell 1000 Index, due to a change in the fund's investment objective and principal investment strategies resulting from the sub-adviser change. /2/Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the six-month period ended April 30, 2004, calculated among the 633 funds in the fund's Lipper category including the reinvestment of dividends and capital gains, if any. 4 Travelers Series Fund Inc. | 2004 Semi-Annual Report For the six months ended April 30, 2004, shares of the Strategic Equity Portfolio returned 6.20%. In comparison, the fund's unmanaged benchmark, the S&P 500 Index/ii/, returned 6.27%. The fund outperformed its previous benchmark index, the Russell 1000 Index,/iv/ which returned 6.11% for the same period. The fund outperformed its Lipper multi-cap core variable funds category average, which returned 4.77% for the same period./3/ The fund slightly lagged the S&P 500 Index because of both weak stock selection as well as negative industry selection, particularly in the consumer discretionary sector./v/ An overweighting in the poorly performing media industry was a drag on performance amid concerns about a slow recovery in advertising spending, as well as increased scrutiny of indecency over the airwaves. Stockpicking and an overweighting in healthcare also hampered performance. Branded pharmaceutical companies suffered from concerns about weak product pipelines, generic competition and foreign prescription drug imports. Security selection within telecommunication services also hurt performance during the period. While many wireless-related stocks in the sector made considerable gains during the period due to merger activity, top-ten portfolio holding SBC Communications declined after its Cingular subsidiary announced its plans to acquire competitor AT&T Wireless. On the bright side, the fund had positive security selection in the materials and financials sectors. The fund was able to avoid the overall decline within the materials sector, as that sector retreated during the first quarter of 2004 due to sluggish job creation and the rising cost of energy. In financials, top-ten portfolio holding Sallie Mae posted strong gains after announcing higher-than-expected fourth-quarter earnings./vi/ Van Kampen Enterprise Portfolio Special Shareholder Notice As of September 30, 2003, Stephen Boyd, Thomas Cooper and Mary Jayne Maly of Van Kampen Asset Management Inc. are responsible for the day-to-day management of the fund. Effective December 16, 2003, Van Kampen Enterprise Portfolio's benchmark changed from the S&P 500 Index to the Russell 1000 Growth Index. For the six months ended April 30, 2004, shares of the Van Kampen Enterprise Portfolio returned 0.14%. In comparison the fund's unmanaged benchmark, the /3/Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the six-month period ended April 30, 2004, calculated among the 1,154 funds in the fund's Lipper category including the reinvestment of dividends and capital gains, if any. 5 Travelers Series Fund Inc. | 2004 Semi-Annual Report Russell 1000 Growth Index/vii/ returned 4.14% and the fund's previous benchmark, the S&P 500 Index,/ii/ returned 6.27%. The fund's Lipper multi-cap core variable funds category average returned 4.77% for the same period./4/ Both stock selection and sector allocations hampered the fund's performance versus the Russell 1000 Growth Index during the period. Stock selection in the information technology sector had the most significant negative impact on performance relative to the benchmark. Additional negative factors included underweight positions and stock selection in the healthcare and consumer staples sectors, as well as stock selection among financial and industrial companies. An underweight in telecommunications services also detracted from relative return./viii/ The fund benefited from stock selection among consumer discretionary companies. An overweight allocation in the strong energy sector compared with the Russell 1000 Growth Index also added to relative return, as did an underweight in technology stocks, which were poor performers in the growth stock universe. Late in the semi-annual period, we trimmed the fund's healthcare position due to potentially unfavorable legislation for pharmaceutical companies and because we sought to reduce the fund's more defensive holdings overall. We also pared the fund's industrial holdings because we preferred to seek earnings growth through a more diversified stake in sectors, such as consumer discretionary and information technology. We continue to focus on companies with an earnings-growth outlook that is, in our view, at least commensurate with their valuations. Information About Your Fund In recent months several issues in the mutual fund industry have come under the scrutiny of federal and state regulators. The fund's Adviser and some of its affiliates have received requests for information from various government regulators regarding market timing, late trading, fees and other mutual fund issues in connection with various investigations. The fund has been informed that the Adviser and its affiliates are responding to those information requests, but are not in a position to predict the outcome of these requests and investigations. /4/Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the six-month period ended April 30, 2004, calculated among the 1,154 funds in the fund's Lipper category including the reinvestment of dividends and capital gains, if any. 6 Travelers Series Fund Inc. | 2004 Semi-Annual Report As always, thank you for your continued confidence in our stewardship of your assets. We look forward to helping you continue to meet your financial goals. Sincerely, /s/ R. Jay Gerken R. Jay Gerken, CFA Chairman, President and Chief Executive Officer May 19, 2004 The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole. Portfolio holdings and breakdowns are as of April 30, 2004 and are subject to change. Please refer to pages 9 through 25 for a list and percentage breakdown of the funds' holdings. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index. RISKS: Van Kampen Enterprise Portfolio: The fund may invest in foreign securities. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations, and changes in political and economic conditions. These risks are magnified in emerging or developing markets. The fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. The fund may invest in small capitalization companies. Small capitalization companies may involve a higher degree of risk and volatility than investments in larger, more established companies. The fund may invest in medium capitalization companies. Medium capitalization companies may involve a higher degree of risk and volatility than investments in larger, more established companies. Strategic Equity Portfolio: The fund may invest in foreign securities. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations, and changes in political and economic conditions. The fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially, large impact on fund performance. Smith Barney Large Cap Value Portfolio: Keep in mind, common stocks are subject to market fluctuations. Foreign stocks are subject to certain risks of overseas investing, including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. The fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. /i/The S&P 500/Barra Value is a market-capitalization weighted index of stocks in the S&P 500 having lower price-to-book ratios relative to the S&P 500 as a whole. (A price-to-book ratio is the price of a stock compared to the difference between a company's assets and liabilities). /ii/The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. /iii/The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio manager's current or future investments. The fund's top five sector holdings as of April 30, 2004 were: Financials (24.7%); Consumer Discretionary (12.8%); Information Technology (10.9%); Energy (10.1%); Healthcare (9.6%). The fund's portfolio composition is subject to change at any time. 7 Travelers Series Fund Inc. | 2004 Semi-Annual Report /iv/The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. /v/The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio manager's current or future investments. The fund's top five sector holdings as of April 30, 2004 were: Consumer Discretionary (19.4%); Healthcare (17.2%); Industrials (16.3%); Telecommunication Services (14.1%); Consumer Staples (8.4%). The fund's portfolio composition is subject to change at any time. /vi/Portfolio holdings and breakdowns are as of April 30, 2004 and are subject to change and may not be representative of the portfolio manager's current or future investments. The fund's top ten holdings as of this date were: Verizon Communications (5.8%), SBC Communications Inc. (5.1%), SLM Corp. (4.0%), Viacom Inc., Class B Shares (3.5%), The Procter & Gamble Co. (3.5%), Northrop Grumman Corp. (3.4%), Microsoft Corp. (3.4%), Lockheed Martin Corp. (3.0%), ITT Industries, Inc. (2.8%), Roche Holding AG (2.8%). /vii/The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. /viii/The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio manager's current or future investments. The fund's top five sector holdings as of April 30, 2004 were: Information Technology (23.0%); Consumer Discretionary (22.0%); Healthcare (20.2%); Industrials (10.0%) and Financials (8.2%). The fund's portfolio composition is subject to change at any time. 8 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) APRIL 30, 2004 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------- COMMON STOCK -- 97.5% CONSUMER DISCRETIONARY -- 12.7% Hotels, Restaurants and Leisure -- 1.7% 228,600 McDonald's Corp. $ 6,224,778 - ----------------------------------------------------------------- Household Durables -- 1.0% 157,700 Newell Rubbermaid Inc. 3,728,028 - ----------------------------------------------------------------- Media -- 6.4% Comcast Corp.: 91,800 Class A Shares* 2,763,180 99,700 Special Class A Shares* 2,890,303 487,600 Liberty Media Corp., Series A Shares* 5,334,344 165,900 The News Corp. Ltd., Sponsored Preferred ADR 5,599,125 298,000 Time Warner Inc.* 5,012,360 65,900 Viacom Inc., Class B Shares 2,547,035 - ----------------------------------------------------------------- 24,146,347 - ----------------------------------------------------------------- Multi-Line Retail -- 2.6% 66,900 Costco Wholesale Corp.* 2,505,405 41,400 Federated Department Stores, Inc. 2,028,600 121,500 Target Corp. 5,269,455 - ----------------------------------------------------------------- 9,803,460 - ----------------------------------------------------------------- Specialty Retail -- 1.0% 107,900 The Home Depot, Inc. 3,797,001 - ----------------------------------------------------------------- TOTAL CONSUMER DISCRETIONARY 47,699,614 - ----------------------------------------------------------------- CONSUMER STAPLES -- 8.7% Food and Drug Retailing -- 3.2% 357,600 The Kroger Co.* 6,258,000 242,700 Safeway Inc.* 5,569,965 - ----------------------------------------------------------------- 11,827,965 - ----------------------------------------------------------------- Food Products -- 1.3% 147,000 Kraft Foods Inc. 4,837,770 - ----------------------------------------------------------------- Household Products -- 1.7% 99,300 Kimberly-Clark Corp. 6,499,185 - ----------------------------------------------------------------- Tobacco -- 2.5% 170,900 Altria Group, Inc. 9,464,442 - ----------------------------------------------------------------- TOTAL CONSUMER STAPLES 32,629,362 - ----------------------------------------------------------------- ENERGY -- 9.9% Energy Equipment and Services -- 3.0% 169,000 ENSCO International Inc. 4,625,530 97,900 GlobalSantaFe Corp. 2,581,623 89,500 Nabors Industries Ltd.* 3,970,220 - ----------------------------------------------------------------- 11,177,373 - -----------------------------------------------------------------
See Notes to Financial Statements. 9 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE - ------------------------------------------------------------------- Oil and Gas -- 6.9% 127,300 BP PLC, Sponsored ADR $ 6,734,170 78,300 ChevronTexaco Corp. 7,164,450 99,700 Royal Dutch Petroleum Co., New York Shares 4,851,402 80,900 Total SA, Sponsored ADR 7,452,508 - ------------------------------------------------------------------- 26,202,530 - ------------------------------------------------------------------- TOTAL ENERGY 37,379,903 - ------------------------------------------------------------------- FINANCIALS -- 24.4% Banks -- 8.0% 124,020 Bank of America Corp. 9,982,370 154,000 The Bank of New York Co., Inc. 4,487,560 171,200 U.S. Bancorp 4,389,568 87,300 Wachovia Corp. 3,993,975 85,300 Washington Mutual, Inc. 3,359,967 68,600 Wells Fargo & Co. 3,873,156 - ------------------------------------------------------------------- 30,086,596 - ------------------------------------------------------------------- Diversified Financials -- 8.6% 95,600 American Express Co. 4,679,620 40,700 Capital One Financial Corp. 2,667,071 44,600 The Goldman Sachs Group, Inc. 4,315,050 110,700 J.P. Morgan Chase & Co. 4,162,320 179,200 MBNA Corp. 4,368,896 92,800 Merrill Lynch & Co., Inc. 5,032,544 76,000 Morgan Stanley 3,905,640 144,100 Waddell & Reed Financial, Inc., Class A Shares 3,203,343 - ------------------------------------------------------------------- 32,334,484 - ------------------------------------------------------------------- Insurance -- 5.9% 104,800 American International Group, Inc. 7,508,920 51,000 The Hartford Financial Services Group, Inc. 3,115,080 91,400 Loews Corp. 5,302,114 86,200 The St. Paul Travelers Cos., Inc. 3,505,754 37,800 XL Capital Ltd., Class A Shares 2,886,030 - ------------------------------------------------------------------- 22,317,898 - ------------------------------------------------------------------- Real Estate -- 1.9% 159,400 Equity Office Properties Trust 4,012,098 111,100 Equity Residential 3,050,806 - ------------------------------------------------------------------- 7,062,904 - ------------------------------------------------------------------- TOTAL FINANCIALS 91,801,882 - ------------------------------------------------------------------- HEALTHCARE -- 9.5% Healthcare Providers and Services -- 1.3% 121,400 HCA Inc. 4,932,482 - -------------------------------------------------------------------
See Notes to Financial Statements. 10 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------- Pharmaceuticals -- 8.2% 116,200 GlaxoSmithKline PLC, ADR $ 4,880,400 67,300 Johnson & Johnson 3,636,219 108,600 Merck & Co., Inc. 5,104,200 283,300 Pfizer Inc. 10,130,808 220,600 Schering-Plough Corp. 3,690,638 87,400 Wyeth 3,327,318 - ----------------------------------------------------------------- 30,769,583 - ----------------------------------------------------------------- TOTAL HEALTHCARE 35,702,065 - ----------------------------------------------------------------- INDUSTRIALS -- 7.0% Aerospace and Defense -- 3.5% 108,000 The Boeing Co. 4,610,520 103,900 Lockheed Martin Corp. 4,956,030 42,100 United Technologies Corp. 3,631,546 - ----------------------------------------------------------------- 13,198,096 - ----------------------------------------------------------------- Commercial Services and Supplies -- 1.9% 64,300 Avery Dennison Corp. 4,129,989 108,400 Waste Management, Inc. 3,078,560 - ----------------------------------------------------------------- 7,208,549 - ----------------------------------------------------------------- Industrial Conglomerates -- 1.6% 176,600 Honeywell International Inc. 6,106,828 - ----------------------------------------------------------------- TOTAL INDUSTRIALS 26,513,473 - ----------------------------------------------------------------- INFORMATION TECHNOLOGY -- 10.8% Communications Equipment -- 3.6% 211,100 3Com Corp.* 1,300,376 134,000 Comverse Technology, Inc.* 2,192,240 548,100 Lucent Technologies Inc.* 1,847,097 262,600 Nokia Oyj, Sponsored ADR 3,679,026 1,187,700 Nortel Networks Corp.* 4,441,998 - ----------------------------------------------------------------- 13,460,737 - ----------------------------------------------------------------- Computers and Peripherals -- 3.4% 315,500 Hewlett-Packard Co. 6,215,350 35,400 International Business Machines Corp. 3,121,218 918,700 Sun Microsystems, Inc.* 3,582,930 - ----------------------------------------------------------------- 12,919,498 - ----------------------------------------------------------------- Electronic Equipment and Instruments -- 1.6% 168,600 Celestica Inc., Subordinate Voting Shares* 2,963,988 576,400 Solectron Corp.* 2,824,360 - ----------------------------------------------------------------- 5,788,348 - -----------------------------------------------------------------
See Notes to Financial Statements. 11 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------- Software -- 2.2% 252,500 Microsoft Corp. $ 6,557,425 180,600 Novell, Inc.* 1,740,984 - ---------------------------------------------------------- 8,298,409 - ---------------------------------------------------------- TOTAL INFORMATION TECHNOLOGY 40,466,992 - ---------------------------------------------------------- MATERIALS -- 3.4% Chemicals -- 0.6% 55,600 The Dow Chemical Co. 2,206,764 - ---------------------------------------------------------- Metals and Mining -- 1.5% 179,200 Alcoa Inc. 5,510,400 - ---------------------------------------------------------- Paper and Forest Products -- 1.3% 122,400 International Paper Co. 4,935,168 - ---------------------------------------------------------- TOTAL MATERIALS 12,652,332 - ---------------------------------------------------------- TELECOMMUNICATION SERVICES -- 5.6% Diversified Telecommunication Services -- 4.0% 172,500 AT&T Corp. 2,958,375 225,500 SBC Communications Inc. 5,614,950 176,300 Verizon Communications Inc. 6,653,562 - ---------------------------------------------------------- 15,226,887 - ---------------------------------------------------------- Wireless Telecommunication Services -- 1.6% 424,500 AT&T Wireless Services, Inc.* 5,862,345 - ---------------------------------------------------------- TOTAL TELECOMMUNICATION SERVICES 21,089,232 - ---------------------------------------------------------- UTILITIES -- 5.5% Electric Utilities -- 3.5% 62,400 Ameren Corp. 2,728,128 122,200 FirstEnergy Corp. 4,778,020 68,100 PG&E Corp.* 1,874,112 83,000 Progress Energy, Inc. 3,549,910 - ---------------------------------------------------------- 12,930,170 - ---------------------------------------------------------- Gas Utilities -- 0.8% 440,900 El Paso Corp. 3,090,709 - ---------------------------------------------------------- Multi -- Utilities -- 1.2% 228,200 NiSource Inc. 4,600,512 - ---------------------------------------------------------- TOTAL UTILITIES 20,621,391 - ---------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $339,707,096) 366,556,246 - ----------------------------------------------------------
See Notes to Financial Statements. 12 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 SMITH BARNEY LARGE CAP VALUE PORTFOLIO
FACE AMOUNT SECURITY VALUE - ---------------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 2.5% $9,349,000 UBS Securities LLC dated 4/30/04, 0.920% due 5/3/04; Proceeds at maturity -- $9,349,717; (Fully collateralized by U.S. Treasury Inflationary Index Notes, 3.000% due 7/15/12; Market value -- $9,536,039) (Cost -- $9,349,000) $ 9,349,000 - ---------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost -- $349,056,096**) $375,905,246 - ----------------------------------------------------------------------------------------
* 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. 13 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE - -------------------------------------------------------------------------- COMMON STOCK -- 94.7% CONSUMER DISCRETIONARY -- 19.6% Auto Components -- 0.0% 260 Gentex Corp. (a) $ 10,226 5,000 Johnson Controls, Inc. 274,300 - -------------------------------------------------------------------------- 284,526 - -------------------------------------------------------------------------- Distributors -- 0.0% 9,200 CarMax, Inc. (a)* 238,464 - -------------------------------------------------------------------------- Hotels, Restaurants and Leisure -- 0.7% 17,200 International Game Technology 649,128 40,800 McDonald's Corp. 1,110,984 56,350 Shuffle Master, Inc. (a)* 1,845,463 - -------------------------------------------------------------------------- 3,605,575 - -------------------------------------------------------------------------- Household Durables -- 0.0% 1,150 Garmin Ltd. (a) 36,984 - -------------------------------------------------------------------------- Media -- 17.2% 777,800 British Sky Broadcasting Group PLC 9,190,624 107,689 Cumulus Media Inc., Class A Shares (a)* 2,263,623 376,381 The DIRECTV Group, Inc.* 6,737,220 355,600 Fox Entertainment Group, Inc., Class A Shares* 9,903,460 133,700 Lamar Advertising Co., Class A Shares (a)* 5,489,722 753,000 Liberty Media Corp., Series A Shares* 8,237,820 The News Corp. Ltd.: 249,400 Sponsored ADR (a) 9,118,064 75,961 Sponsored Preferred ADR 2,563,684 121,506 Pixar, Inc. (a)* 8,298,860 8,500 Playboy Enterprises, Inc., Class B Shares (a)* 110,925 15,864 Radio One, Inc., Class D Shares (a)* 300,781 103,185 Sogecable, S.A. (a)* 4,414,263 274,100 Time Warner Inc.* 4,610,362 488,923 Viacom Inc., Class B Shares 18,896,874 82,400 The Walt Disney Co. 1,897,672 400 XM Satellite Radio Holdings Inc., Class A Shares (a)* 9,584 - -------------------------------------------------------------------------- 92,043,538 - -------------------------------------------------------------------------- Multi-Line Retail -- 0.7% 61,700 Wal-Mart Stores, Inc. 3,516,900 - -------------------------------------------------------------------------- Specialty Retail -- 1.0% 217,300 Dixons Group PLC 598,541 90,800 The Home Depot, Inc. 3,195,252 54,095 Monro Muffler Brake, Inc.* 1,285,838 1,700 Staples, Inc. 43,792 - -------------------------------------------------------------------------- 5,123,423 - --------------------------------------------------------------------------
See Notes to Financial Statements. 14 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------- Textiles and Apparel -- 0.0% 1,200 NIKE, Inc., Class B Shares $ 86,340 - ---------------------------------------------------------------- TOTAL CONSUMER DISCRETIONARY 104,935,750 - ---------------------------------------------------------------- CONSUMER STAPLES -- 8.5% Beverages -- 1.3% 126,800 PepsiCo, Inc. 6,909,332 - ---------------------------------------------------------------- Food Products -- 3.6% 17,700 Bunge Ltd. (a) 655,785 90,310 Hormel Foods Corp. 2,753,552 71,200 Kellogg Co. 3,054,480 235,400 Kraft Foods Inc., Class A Shares 7,747,014 108,700 McCormick & Co., Inc., Non-Voting Shares 3,713,192 32,200 Smithfield Foods, Inc. (a)* 856,520 55,900 SunOpta Inc. (a)* 524,901 - ---------------------------------------------------------------- 19,305,444 - ---------------------------------------------------------------- Household Products -- 3.5% 178,100 The Procter & Gamble Co. 18,834,075 - ---------------------------------------------------------------- Personal Products -- 0.1% 3,800 Avon Products, Inc. 319,200 - ---------------------------------------------------------------- TOTAL CONSUMER STAPLES 45,368,051 - ---------------------------------------------------------------- ENERGY -- 1.6% Energy Equipment and Services -- 1.2% 122,931 Pride International, Inc.* 2,073,846 71,000 Rowan Cos., Inc.* 1,583,300 43,000 Schlumberger Ltd. 2,516,790 - ---------------------------------------------------------------- 6,173,936 - ---------------------------------------------------------------- Oil and Gas -- 0.4% 8,600 AO Siberian Oil Co., Sponsored ADR 263,590 9,520 Apache Corp. 398,602 35,300 Exxon Mobil Corp. 1,502,015 - ---------------------------------------------------------------- 2,164,207 - ---------------------------------------------------------------- TOTAL ENERGY 8,338,143 - ---------------------------------------------------------------- FINANCIALS -- 7.9% Banks -- 1.4% 100 Bank of America Corp. 8,049 96,200 Boston Private Financial Holdings, Inc. (a) 2,241,460 130,551 Sovereign Bancorp, Inc. (a) 2,608,409 53,000 Wintrust Financial Corp. (a) 2,516,970 - ---------------------------------------------------------------- 7,374,888 - ----------------------------------------------------------------
See Notes to Financial Statements. 15 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE - ------------------------------------------------------ Diversified Financials -- 4.3% 1,300 American Express Co. $ 63,635 21,500 Capital One Financial Corp. 1,408,895 100 The Goldman Sachs Group, Inc. 9,675 200 Morgan Stanley 10,278 563,950 SLM Corp. 21,604,925 - ------------------------------------------------------ 23,097,408 - ------------------------------------------------------ Insurance -- 2.2% Berkshire Hathaway Inc.: 62 Class A Shares* 5,790,180 1,857 Class B Shares* 5,791,983 26,040 Scottish Re Group Ltd. (a) 569,755 - ------------------------------------------------------ 12,151,918 - ------------------------------------------------------ TOTAL FINANCIALS 42,624,214 - ------------------------------------------------------ HEALTHCARE -- 17.3% Biotechnology -- 3.6% 19,600 Biogen Idec Inc.* 1,156,400 112,003 Dendreon Corp. (a)* 1,456,039 86,400 Genentech, Inc.* 10,609,920 40,800 Gilead Sciences, Inc.* 2,481,864 158,400 Millennium Pharmaceuticals, Inc.* 2,374,416 13,700 OSI Pharmaceuticals, Inc. (a)* 1,010,923 - ------------------------------------------------------ 19,089,562 - ------------------------------------------------------ Healthcare Equipment and Supplies -- 1.5% 205,300 Biomet, Inc. 8,109,350 2,200 Medtronic, Inc. 111,012 - ------------------------------------------------------ 8,220,362 - ------------------------------------------------------ Healthcare Providers and Services -- 4.3% 318,500 Caremark Rx, Inc.* 10,781,225 27,700 Covance Inc. (a)* 934,598 31,600 Lincare Holdings Inc.* 1,097,468 168,400 UnitedHealth Group Inc. 10,353,232 - ------------------------------------------------------ 23,166,523 - ------------------------------------------------------ Pharmaceuticals -- 7.9% 144,450 Barr Pharmaceuticals, Inc.* 5,983,119 94,300 Johnson & Johnson 5,095,029 95,500 Merck & Co., Inc. 4,488,500 34,300 Novartis AG, Sponsored ADR 1,536,640
See Notes to Financial Statements. 16 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------- Pharmaceuticals -- 7.9% (continued) 286,200 Pfizer Inc. $ 10,234,512 144,676 Roche Holding AG (a) 15,156,905 - ---------------------------------------------------------------- 42,494,705 - ---------------------------------------------------------------- TOTAL HEALTHCARE 92,971,152 - ---------------------------------------------------------------- INDUSTRIALS -- 16.4% Aerospace and Defense -- 8.7% 78,100 General Dynamics Corp. 7,311,722 336,600 Lockheed Martin Corp. 16,055,820 187,200 Northrop Grumman Corp. 18,579,600 34,700 Raytheon Co. 1,119,422 103,700 United Defense Industries, Inc.* 3,593,205 - ---------------------------------------------------------------- 46,659,769 - ---------------------------------------------------------------- Air Freight and Couriers -- 0.0% 4,400 United Parcel Service, Inc., Class B Shares 308,660 - ---------------------------------------------------------------- Airlines -- 0.3% 123,100 AirTran Holdings, Inc. (a)* 1,503,051 - ---------------------------------------------------------------- Commercial Services and Supplies -- 0.0% 900 NDCHealth Corp. 20,583 - ---------------------------------------------------------------- Electrical Equipment -- 0.0% 100 Nitto Denko Corp. 5,554 - ---------------------------------------------------------------- Industrial Conglomerates -- 4.1% 3,300 3M Co. 285,384 184,900 General Electric Co. 5,537,755 317,300 Honeywell International Inc. 10,972,234 183,100 Tyco International Ltd. 5,026,095 - ---------------------------------------------------------------- 21,821,468 - ---------------------------------------------------------------- Machinery -- 3.3% 38,700 Cummins Inc. 2,314,647 192,000 ITT Industries, Inc. 15,223,680 - ---------------------------------------------------------------- 17,538,327 - ---------------------------------------------------------------- Road and Rail -- 0.0% 100 Union Pacific Corp. 5,893 - ---------------------------------------------------------------- TOTAL INDUSTRIALS 87,863,305 - ---------------------------------------------------------------- INFORMATION TECHNOLOGY -- 6.2% Communications Equipment -- 1.1% 900 Alcatel SA, Sponsored ADR (a) 13,194 372,400 CIENA Corp.* 1,541,736 43,000 Cisco Systems, Inc.* 897,410
See Notes to Financial Statements. 17 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE - --------------------------------------------------------------------------------------- Communications Equipment -- 1.1% (continued) 67,900 Harris Corp. $ 3,058,895 7,300 Scientific-Atlanta, Inc. 236,447 - --------------------------------------------------------------------------------------- 5,747,682 - --------------------------------------------------------------------------------------- Computers and Peripherals -- 0.1% 110 Dell Inc.* 3,818 47,000 EMC Corp.* 524,520 - --------------------------------------------------------------------------------------- 528,338 - --------------------------------------------------------------------------------------- Electronic Equipment and Instruments -- 1.1% 133,900 Diebold, Inc. 6,171,451 - --------------------------------------------------------------------------------------- Internet Software and Services -- 0.1% 9,400 Yahoo! Inc.* 474,324 - --------------------------------------------------------------------------------------- IT Consulting and Services -- 0.0% 1,600 Computer Sciences Corp.* 65,456 - --------------------------------------------------------------------------------------- Semiconductor Equipment and Products -- 0.2% 7 Conexant Systems, Inc.* 30 4,300 PMC-Sierra, Inc.* 52,245 100 Semiconductor Manufacturing International Corp., Sponsored ADR (a)* 1,169 34,500 Xilinx, Inc. 1,160,235 - --------------------------------------------------------------------------------------- 1,213,679 - --------------------------------------------------------------------------------------- Software -- 3.6% 33,200 BEA Systems, Inc. (a)* 378,812 712,500 Microsoft Corp. 18,503,625 17,800 NDS Group PLC, Sponsored ADR* 456,926 - --------------------------------------------------------------------------------------- 19,339,363 - --------------------------------------------------------------------------------------- TOTAL INFORMATION TECHNOLOGY 33,540,293 - --------------------------------------------------------------------------------------- MATERIALS -- 2.1% Chemicals -- 0.2% 25,000 The Dow Chemical Co. 992,250 - --------------------------------------------------------------------------------------- Containers and Packaging -- 0.2% 51,947 Smurfit-Stone Container Corp.* 892,969 - --------------------------------------------------------------------------------------- Metals and Mining -- 1.7% 105,000 Apex Silver Mines Ltd.* 1,717,800 112,800 Goldcorp Inc. 1,252,474 135,400 Newmont Mining Corp. 5,063,960 2,000 Nucor Corp. (a) 118,800 20,900 Peabody Energy Corp. (a) 980,001 - --------------------------------------------------------------------------------------- 9,133,035 - --------------------------------------------------------------------------------------- TOTAL MATERIALS 11,018,254 - ---------------------------------------------------------------------------------------
See Notes to Financial Statements. 18 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (CONTINUED) (UNAUDITED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
SHARES SECURITY VALUE ------------------------------------------------------------------------------ TELECOMMUNICATION SERVICES -- 14.2% Diversified Telecommunication Services -- 14.2% 508,500 BellSouth Corp. $ 13,124,385 315,800 Citizens Communications Co. (a)* 4,118,032 1,111,600 SBC Communications Inc. 27,678,840 831,500 Verizon Communications Inc. 31,380,810 ------------------------------------------------------------------------------ 76,302,067 ------------------------------------------------------------------------------ Wireless Telecommunication Services -- 0.0% 400 Vodafone Group PLC, Sponsored ADR 9,816 ------------------------------------------------------------------------------ TOTAL TELECOMMUNICATION SERVICES 76,311,883 ------------------------------------------------------------------------------ UTILITIES -- 0.9% Electric Utilities -- 0.9% 48,800 Entergy Corp. 2,664,480 50,800 Public Service Enterprise Group Inc. 2,179,320 ------------------------------------------------------------------------------ 4,843,800 ------------------------------------------------------------------------------ TOTAL COMMON STOCK (Cost -- $497,875,869) 507,814,845 ------------------------------------------------------------------------------ PREFERRED STOCK -- 0.2% ENERGY -- 0.2% Oil and Gas -- 0.2% 12,900 Chesapeake Energy Corp., 6.000% Cumulative Convertible (Cost -- $770,517) 977,175 ------------------------------------------------------------------------------ FACE AMOUNT SECURITY VALUE ------------------------------------------------------------------------------ CONVERTIBLE BONDS -- 0.4% INFORMATION TECHNOLOGY -- 0.4% Communications Equipment -- 0.4% $2,550,000 CIENA Corp., Notes, 3.750% due 2/1/08 (Cost -- $2,291,609) 2,368,312 ------------------------------------------------------------------------------
See Notes to Financial Statements. 19 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (CONTINUED) (UNAUDITED) APRIL 30, 2004 STRATEGIC EQUITY PORTFOLIO
FACE AMOUNT SECURITY VALUE - ------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT -- 4.7% $25,295,000 State Street Bank and Trust Co. dated 4/30/04, 0.870% due 5/3/04; Proceeds at maturity -- $25,296,834; (Fully collateralized by U.S. Treasury Bonds, 8.000% due 11/15/21; Market value -- $25,804,010) (Cost -- $25,295,000) $ 25,295,000 - ------------------------------------------------------------------------------------------ TOTAL INVESTMENTS -- 100.0% (Cost -- $526,232,995**) $536,455,332 - ------------------------------------------------------------------------------------------ LOANED SECURITIES COLLATERAL 50,617,009 State Street Navigator Securities Lending Trust Prime Portfolio (Cost -- $50,617,009) $ 50,617,009 - ------------------------------------------------------------------------------------------
(a) All or a portion of this security is on loan (See Note 6). * Non-income producing security. ** Aggregate cost for Federal income tax purposes is substantially the same. Abbreviation used in this schedule: ADR -- American Depositary Receipt See Notes to Financial Statements. 20 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------------------- COMMON STOCK -- 97.2% CONSUMER DISCRETIONARY -- 22.0% Hotels, Restaurants and Leisure -- 10.6% 20,900 Brinker International, Inc.* $ 803,814 43,700 Carnival Corp. 1,864,679 22,400 Harrah's Entertainment, Inc. 1,191,232 20,000 International Game Technology 754,800 32,300 Marriott International, Inc., Class A Shares 1,523,268 11,600 Outback Steakhouse, Inc. 509,588 34,000 Royal Caribbean Cruises Ltd. (a) 1,378,020 26,500 Starwood Hotels & Resorts Worldwide, Inc. 1,054,435 - ----------------------------------------------------------------- 9,079,836 - ----------------------------------------------------------------- Media -- 3.7% 27,000 EchoStar Communications Corp., Class A Shares* 896,130 The News Corp. Ltd.: 13,800 Sponsored ADR (a) 504,528 37,200 Sponsored Preferred ADR 1,255,500 24,500 The Walt Disney Co. 564,235 - ----------------------------------------------------------------- 3,220,393 - ----------------------------------------------------------------- Multi-Line Retail -- 3.4% 34,700 Target Corp. 1,504,939 24,900 Wal-Mart Stores, Inc. 1,419,300 - ----------------------------------------------------------------- 2,924,239 - ----------------------------------------------------------------- Specialty Retail -- 3.2% 23,400 Bed Bath & Beyond Inc.* 868,608 26,800 The Home Depot, Inc. 943,092 35,700 Staples, Inc. 919,632 - ----------------------------------------------------------------- 2,731,332 - ----------------------------------------------------------------- Textiles and Apparel -- 1.1% 23,000 Coach, Inc.* 979,800 - ----------------------------------------------------------------- TOTAL CONSUMER DISCRETIONARY 18,935,600 - ----------------------------------------------------------------- CONSUMER STAPLES -- 7.6% Beverages -- 2.7% 9,800 Brown-Forman Corp., Class B Shares 459,228 33,900 PepsiCo, Inc. 1,847,211 - ----------------------------------------------------------------- 2,306,439 - ----------------------------------------------------------------- Food and Drug Retailing -- 0.6% 12,700 CVS Corp. 490,601 - -----------------------------------------------------------------
See Notes to Financial Statements. 21 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE - ----------------------------------------------------- Household Products -- 3.3% 18,500 The Clorox Co. $ 957,930 15,000 Colgate-Palmolive Co. 868,200 9,600 The Procter & Gamble Co. 1,015,200 - ----------------------------------------------------- 2,841,330 - ----------------------------------------------------- Personal Products -- 1.0% 21,900 The Gillette Co. 896,148 - ----------------------------------------------------- TOTAL CONSUMER STAPLES 6,534,518 - ----------------------------------------------------- ENERGY -- 4.4% Energy Equipment and Services -- 2.2% 26,800 Halliburton Co. 798,640 18,600 Schlumberger Ltd. 1,088,658 - ----------------------------------------------------- 1,887,298 - ----------------------------------------------------- Oil and Gas -- 2.2% 27,200 BP PLC, Sponsored ADR 1,438,880 5,100 Total SA, Sponsored ADR (a) 469,812 - ----------------------------------------------------- 1,908,692 - ----------------------------------------------------- TOTAL ENERGY 3,795,990 - ----------------------------------------------------- FINANCIALS -- 8.2% Banks -- 1.5% 22,700 Wells Fargo & Co. 1,281,642 - ----------------------------------------------------- Diversified Financials -- 5.0% 26,400 American Express Co. 1,292,280 9,500 Fannie Mae 652,840 26,450 J.P. Morgan Chase & Co. 994,520 26,200 Merrill Lynch & Co., Inc. 1,420,826 - ----------------------------------------------------- 4,360,466 - ----------------------------------------------------- Insurance -- 1.7% 20,425 American International Group, Inc. 1,463,451 - ----------------------------------------------------- TOTAL FINANCIALS 7,105,559 - ----------------------------------------------------- HEALTHCARE -- 20.2% Biotechnology -- 3.0% 15,700 Amgen Inc.* 883,439 21,100 Biogen Idec Inc.* 1,244,900 7,100 ImClone Systems Inc. (a)* 474,848 - ----------------------------------------------------- 2,603,187 - -----------------------------------------------------
See Notes to Financial Statements. 22 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------- Healthcare Equipment and Supplies -- 2.2% 7,400 Guidant Corp. $ 466,274 6,800 St. Jude Medical, Inc.* 518,568 11,400 Zimmer Holdings, Inc.* 910,290 - ---------------------------------------------------------------------- 1,895,132 - ---------------------------------------------------------------------- Healthcare Providers and Services -- 4.9% 16,300 Anthem, Inc. (a)* 1,443,854 42,700 Caremark Rx, Inc.* 1,445,395 20,800 UnitedHealth Group Inc. 1,278,784 - ---------------------------------------------------------------------- 4,168,033 - ---------------------------------------------------------------------- Pharmaceuticals -- 10.1% 9,700 Allergan, Inc. 854,085 2,450 Barr Pharmaceuticals, Inc.* 101,479 13,200 Eli Lilly and Co. 974,292 8,800 Johnson & Johnson 475,464 25,400 King Pharmaceuticals, Inc.* 438,150 103,650 Pfizer Inc. 3,706,524 22,300 Teva Pharmaceutical Industries Ltd., Sponsored ADR 1,372,788 22,600 Watson Pharmaceuticals, Inc.* 804,786 - ---------------------------------------------------------------------- 8,727,568 - ---------------------------------------------------------------------- TOTAL HEALTHCARE 17,393,920 - ---------------------------------------------------------------------- INDUSTRIALS -- 10.0% Industrial Conglomerates -- 6.3% 119,000 General Electric Co. 3,564,050 67,000 Tyco International Ltd. 1,839,150 - ---------------------------------------------------------------------- 5,403,200 - ---------------------------------------------------------------------- Machinery -- 3.7% 8,000 Danaher Corp. 740,160 19,400 Deere & Co. 1,319,976 7,900 Ingersoll-Rand Co., Class A Shares 509,945 26,600 Pall Corp. 632,548 - ---------------------------------------------------------------------- 3,202,629 - ---------------------------------------------------------------------- TOTAL INDUSTRIALS 8,605,829 - ---------------------------------------------------------------------- INFORMATION TECHNOLOGY -- 23.0% Communications Equipment -- 3.6% 120,700 Cisco Systems, Inc.* 2,519,009 37,400 Comverse Technology, Inc.* 611,864 - ---------------------------------------------------------------------- 3,130,873 - ----------------------------------------------------------------------
See Notes to Financial Statements. 23 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) APRIL 30, 2004 VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE - ---------------------------------------------------------------------- Computers and Peripherals -- 4.8% 46,000 Dell Inc.* $ 1,596,660 86,200 EMC Corp.* 961,992 17,300 Lexmark International, Inc., Class A Shares* 1,564,958 - ---------------------------------------------------------------------- 4,123,610 - ---------------------------------------------------------------------- Internet Software and Services -- 1.5% 25,300 Yahoo! Inc.* 1,276,638 - ---------------------------------------------------------------------- IT Consulting and Services -- 1.1% 36,500 SunGard Data Systems Inc.* 951,555 - ---------------------------------------------------------------------- Semiconductor Equipment and Products -- 4.2% 23,700 Analog Devices, Inc. 1,009,620 84,000 Intel Corp. 2,161,320 16,200 Texas Instruments Inc. 406,620 - ---------------------------------------------------------------------- 3,577,560 - ---------------------------------------------------------------------- Software -- 7.8% 23,800 Adobe Systems Inc. 983,892 28,400 Amdocs Ltd.* 754,020 107,700 Microsoft Corp. 2,796,969 82,800 Oracle Corp.* 929,016 34,200 SAP AG, Sponsored ADR 1,274,976 - ---------------------------------------------------------------------- 6,738,873 - ---------------------------------------------------------------------- TOTAL INFORMATION TECHNOLOGY 19,799,109 - ---------------------------------------------------------------------- MATERIALS -- 0.9% Chemicals -- 0.9% 21,000 Rohm and Haas Co. 814,380 - ---------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 0.9% Diversified Telecommunication Services -- 0.9% 28,900 Telefonaktiebolaget LM Ericsson, Sponsored ADR (a) 770,763 - ---------------------------------------------------------------------- TOTAL COMMON STOCK (Cost -- $80,316,099) 83,755,668 - ----------------------------------------------------------------------
See Notes to Financial Statements. 24 Travelers Series Fund Inc. | 2004 Semi-Annual Report SCHEDULES OF INVESTMENTS (CONTINUED) (UNAUDITED) APRIL 30, 2004 VAN KAMPEN ENTERPRISE PORTFOLIO
FACE AMOUNT SECURITY VALUE - -------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 2.8% $2,375,000 Federal Home Loan Bank, Discount Notes, due 5/3/04 (Cost -- $2,374,881) $ 2,374,881 - -------------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost -- $82,690,980**) $86,130,549 - -------------------------------------------------------------------------------------- LOANED SECURITIES COLLATERAL 4,553,386 State Street Navigator Securities Lending Trust Prime Portfolio (Cost -- $4,553,386) $ 4,553,386 - --------------------------------------------------------------------------------------
(a) All or a portion of this security is on loan (See Note 6). * Non-income producing security. ** Aggregate cost for Federal income tax purposes is substantially the same. Abbreviation used in this schedule: ADR -- American Depositary Receipt See Notes to Financial Statements. 25 Travelers Series Fund Inc. | 2004 Semi-Annual Report STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2004
Smith Barney Large Cap Strategic Van Kampen Value Equity Enterprise Portfolio Portfolio Portfolio - ------------------------------------------------------------------------------------------ ASSETS: Investments, at value (Cost -- $349,056,096, $526,232,995 and $82,690,980, respectively) $375,905,246 $ 536,455,332 $ 86,130,549 Loaned securities collateral, at value (Cost -- $0, $50,617,009 and $4,553,386) (Note 6) -- 50,617,009 4,553,386 Cash 522 331 811 Dividends and interest receivable 541,498 1,003,282 43,248 Receivable for securities sold -- 16,469,465 2,090,564 Receivable for open forward foreign currency contracts (Note 5) -- 1,646 -- Prepaid expenses 481 314 118 Other receivables 3,802 45,133 4,592 - ----------------------------------------------------------------------------------------- Total Assets 376,451,549 604,592,512 92,823,268 - ----------------------------------------------------------------------------------------- LIABILITIES: Payable for securities purchased 3,935,833 12,883,593 -- Payable for Fund shares reacquired 477,687 883,451 62,214 Management fees payable 205,725 346,682 53,405 Payable for loaned securities collateral (Note 6) -- 50,617,009 4,553,386 Payable for open forward foreign currency contracts (Note 5) -- 1,083 -- Accrued expenses 35,493 40,747 24,351 - ----------------------------------------------------------------------------------------- Total Liabilities 4,654,738 64,772,565 4,693,356 - ----------------------------------------------------------------------------------------- Total Net Assets $371,796,811 $ 539,819,947 $ 88,129,912 - ----------------------------------------------------------------------------------------- NET ASSETS: Par value of capital shares $ 223 $ 335 $ 80 Capital paid in excess of par value 394,250,345 767,067,853 154,958,393 Undistributed net investment income 2,119,291 2,468,161 69,222 Accumulated net realized loss from investment transactions (51,422,198) (239,938,903) (70,337,352) Net unrealized appreciation of investments and foreign currencies 26,849,150 10,222,501 3,439,569 - ----------------------------------------------------------------------------------------- Total Net Assets $371,796,811 $ 539,819,947 $ 88,129,912 - ----------------------------------------------------------------------------------------- Shares Outstanding 22,346,159 33,524,161 7,991,752 - ----------------------------------------------------------------------------------------- Net Asset Value $16.64 $16.10 $11.03 - -----------------------------------------------------------------------------------------
See Notes to Financial Statements. 26 Travelers Series Fund Inc. | 2004 Semi-Annual Report STATEMENTS OF OPERATIONS (UNAUDITED) For the Six Months Ended April 30, 2004
Smith Barney Large Cap Strategic Van Kampen Value Equity Enterprise Portfolio Portfolio Portfolio - ------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 4,000,942 $ 4,385,071 $ 486,594 Interest 35,135 343,751 23,163 Less: Foreign withholding tax (49,695) (40,176) (6,831) - ------------------------------------------------------------------------------------ Total Investment Income 3,986,382 4,688,646 502,926 - ------------------------------------------------------------------------------------ EXPENSES: Management fees (Note 2) 1,248,832 2,227,430 334,468 Shareholder communications 63,712 33,411 5,840 Audit and legal 18,630 32,138 17,320 Custody 14,326 48,342 11,060 Directors' fees 5,951 7,771 2,926 Transfer agency services 2,625 2,409 2,501 Other 4,203 4,171 2,493 - ------------------------------------------------------------------------------------ Total Expenses 1,358,279 2,355,672 376,608 Less: Expense reductions (Note 7) -- (125,762) -- - ------------------------------------------------------------------------------------ Net Expenses 1,358,279 2,229,910 376,608 - ------------------------------------------------------------------------------------ Net Investment Income 2,628,103 2,458,736 126,318 - ------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES (NOTES 3 AND 5): Realized Gain From: Investment transactions 14,782,716 25,453,509 9,395,369 Foreign currency transactions -- 8,505 -- - ------------------------------------------------------------------------------------ Net Realized Gain 14,782,716 25,462,014 9,395,369 - ------------------------------------------------------------------------------------ Change in Net Unrealized Appreciation From: Investments 11,135,095 5,992,936 (9,099,242) Foreign currencies -- 719 -- - ------------------------------------------------------------------------------------ Increase (Decrease) in Net Unrealized Appreciation 11,135,095 5,993,655 (9,099,242) - ------------------------------------------------------------------------------------ Net Gain on Investments and Foreign Currencies 25,917,811 31,455,669 296,127 - ------------------------------------------------------------------------------------ Increase in Net Assets From Operations $28,545,914 $33,914,405 $ 422,445 - ------------------------------------------------------------------------------------
See Notes to Financial Statements. 27 Travelers Series Fund Inc. | 2004 Semi-Annual Report STATEMENTS OF CHANGES IN NET ASSETS For the Six Months Ended April 30, 2004 (unaudited) and the Year Ended October 31, 2003
Smith Barney Large Cap Value Portfolio 2004 2003 - --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 2,628,103 $ 6,407,784 Net realized gain (loss) 14,782,716 (24,803,070) Increase in net unrealized appreciation 11,135,095 85,797,301 - -------------------------------------------------------------------------------------------- Increase in Net Assets From Operations 28,545,914 67,402,015 - -------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (5,914,007) (8,408,520) - -------------------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders (5,914,007) (8,408,520) - -------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 8): Net proceeds from sale of shares 2,973,535 5,713,731 Net asset value of shares issued for reinvestment of dividends 5,914,007 8,408,520 Cost of shares reacquired (25,914,075) (53,330,305) - -------------------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (17,026,533) (39,208,054) - -------------------------------------------------------------------------------------------- Increase in Net Assets 5,605,374 19,785,441 NET ASSETS: Beginning of period 366,191,437 346,405,996 - -------------------------------------------------------------------------------------------- End of period* $371,796,811 $366,191,437 - -------------------------------------------------------------------------------------------- * Includes undistributed net investment income of: $2,119,291 $5,405,195 - --------------------------------------------------------------------------------------------
See Notes to Financial Statements. 28 Travelers Series Fund Inc. | 2004 Semi-Annual Report STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the Six Months Ended April 30, 2004 (unaudited) and the Year Ended October 31, 2003
Strategic Equity Portfolio 2004 2003 - --------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ 2,458,736 $ (1,010,341) Net realized gain 25,462,014 43,899,096 Increase in net unrealized appreciation 5,993,655 53,566,083 - -------------------------------------------------------------------------------------------- Increase in Net Assets From Operations 33,914,405 96,454,838 - -------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income -- (650,759) - -------------------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders -- (650,759) - -------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 8): Net proceeds from sale of shares 782,888 6,126,116 Net asset value of shares issued for reinvestment of dividends -- 650,759 Cost of shares reacquired (44,428,178) (68,747,111) - -------------------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (43,645,290) (61,970,236) - -------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets (9,730,885) 33,833,843 NET ASSETS: Beginning of period 549,550,832 515,716,989 - -------------------------------------------------------------------------------------------- End of period* $539,819,947 $549,550,832 - -------------------------------------------------------------------------------------------- * Includes undistributed net investment income of: $2,468,161 $920 - --------------------------------------------------------------------------------------------
See Notes to Financial Statements. 29 Travelers Series Fund Inc. | 2004 Semi-Annual Report STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the Six Months Ended April 30, 2004 (unaudited) and the Year Ended October 31, 2003
Van Kampen Enterprise Portfolio 2004 2003 - -------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 126,318 $ 120,944 Net realized gain (loss) 9,395,369 (6,797,326) Increase (decrease) in net unrealized appreciation (9,099,242) 21,950,369 - ------------------------------------------------------------------------------------------- Increase in Net Assets From Operations 422,445 15,273,987 - ------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (134,925) (471,638) - ------------------------------------------------------------------------------------------- Decrease in Net Assets From Distributions to Shareholders (134,925) (471,638) - ------------------------------------------------------------------------------------------- FUND SHARE TRANSACTIONS (NOTE 8): Net proceeds from sale of shares 893,155 966,979 Net asset value of shares issued for reinvestment of dividends 134,925 471,638 Cost of shares reacquired (9,816,128) (19,790,502) - ------------------------------------------------------------------------------------------- Decrease in Net Assets From Fund Share Transactions (8,788,048) (18,351,885) - ------------------------------------------------------------------------------------------- Decrease in Net Assets (8,500,528) (3,549,536) NET ASSETS: Beginning of period 96,630,440 100,179,976 - ------------------------------------------------------------------------------------------- End of period* $88,129,912 $ 96,630,440 - ------------------------------------------------------------------------------------------- * Includes undistributed net investment income of: $69,222 $77,829 - -------------------------------------------------------------------------------------------
See Notes to Financial Statements. 30 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. Significant Accounting Policies The Smith Barney Large Cap Value Portfolio, Strategic Equity Portfolio and Van Kampen Enterprise Portfolio ("Fund(s)") are separate diversified investment funds of the Travelers Series Fund Inc. ("Company"). The Company, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and consists of these Funds and twelve other separate investment funds: AIM Capital Appreciation Portfolio, Smith Barney International All Cap Growth Portfolio, Travelers Managed Income Portfolio, Pioneer Strategic Income Portfolio, Salomon Brothers Strategic Total Return Bond Portfolio, Smith Barney High Income Portfolio, MFS Total Return Portfolio, Smith Barney Money Market Portfolio, Smith Barney Large Capitalization Growth Portfolio, Smith Barney Mid Cap Core Portfolio, Smith Barney Aggressive Growth Portfolio and SB Adjustable Rate Income Portfolio. 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 following are significant accounting policies consistently followed by the Funds and are in conformity with generally accepted accounting principles ("GAAP"): (a) security transactions are accounted for on trade date; (b) 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 31 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Funds distribute dividends and capital gains, if any, at least 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 liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, and income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Differences between income or expense amounts recorded and collected or paid are adjusted when reported by the custodian bank; ( j) the character of income and gains to be distributed is determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles; (k) the Funds intend to comply with the requirements of the Internal Revenue Code of 1986, as amended, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes; and (l) estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. 2. Management Agreement and Transactions with Affiliated Persons Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary of Citigroup Inc. ("Citigroup"), acts as the investment manager of the Smith Barney Large Cap Value Portfolio ("SBLCV"). SBLCV pays SBFM a management fee calculated at an annual rate of 0.65% of the average daily net assets of SBLCV. Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SBFM, acts as the investment manager of the Strategic Equity Portfolio ("SEP") and the Van Kampen Enterprise Portfolio ("VKEP"). SEP and VKEP pay TIA a management fee calculated at an annual rate of 0.80% and 0.70%, respectively, of the average daily net assets of SEP and VKEP. These fees are calculated daily and paid monthly. TIA has entered into a sub-advisory agreement with Fidelity Management & Research Co. ("FMR"). Pursuant to the sub-advisory agreement, FMR is responsible for the day-to-day portfolio operations and investment decisions and 32 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) is compensated by TIA for such services at an annual rate of 0.45% of the first $250 million of SEP's average daily net assets, 0.40% on the next $500 million of SEP's average daily net assets, and 0.35% of SEP's average daily net assets in excess of $750 million. In addition, TIA has entered into a sub-advisory agreement with Van Kampen Asset Management Inc. ("VKAM"). Pursuant to the sub-advisory agreement, VKAM is responsible for the day-to-day portfolio operations and investment decisions and is compensated by TIA for such services at an annual rate of 0.325% of the average daily net assets of VKEP. TIA has entered into a sub-administrative services agreement with SBFM. TIA pays SBFM, as sub-administrator, a fee calculated at an annual rate of 0.10% of the average daily net assets of SEP and VKEP. Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the Funds' transfer agent. PFPC Inc. ("PFPC") acts as the Funds' sub-transfer agent. CTB receives account fees and asset-based fees that vary according to the size and type of account. PFPC is responsible for shareholder recordkeeping and financial processing for all shareholder accounts and is paid by CTB. For the six months ended April 30, 2004, each Fund paid transfer agent fees of $2,500 to CTB. For the six months ended April 30, 2004, Citigroup Global Markets Inc., another indirect wholly-owned subsidiary of Citigroup, and its affiliates received brokerage commissions of $27,078 and $17,457 from SBLCV and VKEP, respectively. Most of the officers and one Director of the Company are employees of Citigroup or its affiliates. 3. Investments During the six months ended April 30, 2004, the aggregate cost of purchases and proceeds from sales of investments (including maturities of long-term investments, but excluding short-term investments) were as follows:
SBLCV SEP VKEP - ------------------------------------------------------------------------ Purchases $72,829,943 $548,054,552 $80,334,843 - ------------------------------------------------------------------------ Sales 91,599,125 557,952,906 87,569,837 - -----------------------------------------------------------------------
33 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) At April 30, 2004, the aggregate gross unrealized appreciation and depreciation of investments for Federal income tax purposes were substantially as follows:
SBLCV SEP VKEP - ---------------------------------------------------------------------------- Gross unrealized appreciation $ 40,512,389 $ 22,242,303 $ 5,689,004 Gross unrealized depreciation (13,663,239) (12,019,966) (2,249,435) - ---------------------------------------------------------------------------- Net unrealized appreciation $ 26,849,150 $ 10,222,337 $ 3,439,569 - ---------------------------------------------------------------------------
4. Repurchase Agreements When entering into repurchase agreements, it is the Funds' policy that a custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. At April 30, 2004, VKEP did not have any repurchase agreements outstanding. 5. Forward Foreign Currency Contracts SEP may from time to time enter into forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the 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. 34 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) At April 30, 2004, SEP had open forward foreign currency contracts as described below. The unrealized gain and loss on the contracts reflected in the accompanying financial statements were as follows:
Local Market Settlement Unrealized Foreign Currency Currency Value Date Gain (Loss) ----------------------------------------------------------------------------- Contracts to Buy: Swiss Franc 287,700 $221,623 5/3/04 $ 1,635 Swiss Franc 687,373 529,502 5/4/04 (1,083) ----------------------------------------------------------------------------- 552 ----------------------------------------------------------------------------- Contracts to Sell: Japanese Yen 2,447,969 22,181 5/10/04 11 ----------------------------------------------------------------------------- Net Unrealized Gain on Open Forward Foreign Currency Contracts $ 563 -----------------------------------------------------------------------------
6. Lending of Portfolio Securities The Funds have an agreement with their custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Fees earned by the Funds on securities lending are recorded as interest income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or high quality money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities, plus a margin depending on the type of securities loaned. The Funds maintain exposure for the risk of any losses in the investment of amounts received as collateral. At April 30, 2004, SEP and VKEP had loaned securities having a market value of $48,852,620 and $4,390,071. SEP and VKEP received cash collateral amounting to $50,617,009 and $4,553,386 which were invested in the State Street Navigator Securities Lending Trust Prime Portfolio. For the six months ended April 30, 2004, income earned from securities lending by SEP and VKEP was $36,873 and $3,680, respectively. At April 30, 2004, SBLCV did not have any securities on loan. 35 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 7. Expense Reductions Many of the brokers with whom FMR places trades on behalf of certain funds provided services to these funds in addition to trade execution. These services included payments of expenses on behalf of each applicable fund. As a result of the brokerage service arrangements, for the six months ended April 30, 2004, SEP has expense reductions amounting to $125,762. 8. Capital Shares At April 30, 2004, the Company had six billion shares authorized with a par value of $0.00001 per share. Each share of a Fund represents an equal proportionate interest in that Fund with each other share of the same Fund and has an equal entitlement to any dividends and distributions made by the Fund. Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended April 30, 2004 October 31, 2003 ------------------------------------------------------------------------ Smith Barney Large Cap Value Portfolio Shares sold 176,546 401,980 Shares issued on reinvestment 357,126 639,431 Shares reacquired (1,534,968) (3,856,055) ------------------------------------------------------------------------ Net Decrease (1,001,296) (2,814,644) ------------------------------------------------------------------------ Strategic Equity Portfolio Shares sold 48,440 470,412 Shares issued on reinvestment -- 53,826 Shares reacquired (2,769,330) (5,225,885) ------------------------------------------------------------------------ Net Decrease (2,720,890) (4,701,647) ------------------------------------------------------------------------ Van Kampen Enterprise Portfolio Shares sold 77,638 93,737 Shares issued on reinvestment 11,815 51,943 Shares reacquired (859,309) (2,038,763) ------------------------------------------------------------------------ Net Decrease (769,856) (1,893,083) ------------------------------------------------------------------------
9. Additional Information The Funds have received the following information from Citigroup Asset Management ("CAM"), the Citigroup business unit which includes the Funds' Investment Manager and other investment advisory companies, all of which are indirect, wholly-owned subsidiaries of Citigroup. CAM is reviewing its entry, through an affiliate, into the transfer agent business in the period 1997-1999. As 36 Travelers Series Fund Inc. | 2004 Semi-Annual Report NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) CAM currently understands the facts, at the time CAM decided to enter the transfer agent business, CAM sub-contracted for a period of five years certain of the transfer agency services to a third party and also concluded a revenue guarantee agreement with this sub-contractor providing that the sub-contractor would guarantee certain benefits to CAM or its affiliates (the "Revenue Guarantee Agreement"). In connection with the subsequent purchase of the sub-contractor's business by an affiliate of the current sub-transfer agent (PFPC Inc.) used by CAM on many of the funds it manages, this Revenue Guarantee Agreement was amended eliminating those benefits in exchange for arrangements that included a one-time payment from the sub-contractor. The Boards of CAM-managed funds (the "Boards") were not informed of the Revenue Guarantee Agreement with the sub-contractor at the time the Boards considered and approved the transfer agent arrangements. Nor were the Boards informed of the subsequent amendment to the Revenue Guarantee Agreement when that occurred. CAM has begun to take corrective actions. CAM will pay to the applicable funds approximately $17 million (plus interest) that CAM and its affiliates received from the Revenue Guarantee Agreement and its amendment. CAM also plans an independent review to verify that the transfer agency fees charged by CAM were fairly priced as compared to competitive alternatives. CAM is instituting new procedures and making changes designed to ensure no similar arrangements are entered into in the future. CAM has briefed the SEC, the New York State Attorney General and other regulators with respect to this matter, as well as the U.S. Attorney who is investigating the matter. CAM is cooperating with governmental authorities on this matter, the ultimate outcome of which is not yet determinable. 37 Travelers Series Fund Inc. | 2004 Semi-Annual Report FINANCIAL HIGHLIGHTS For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Smith Barney Large Cap Value Portfolio 2004/(1)/ 2003 2002 2001 2000 1999 - ----------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $15.68 $13.24 $17.47 $20.74 $19.83 $18.94 - ---------------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income 0.12 0.28 0.32 0.26 0.30 0.27 Net realized and unrealized gain (loss) 1.10 2.49 (4.24) (2.56) 1.34 1.38 - ---------------------------------------------------------------------------------------------- Total Income (Loss) From Operations 1.22 2.77 (3.92) (2.30) 1.64 1.65 - ---------------------------------------------------------------------------------------------- Less Distributions From: Net investment income (0.26) (0.33) (0.31) (0.27) (0.26) (0.24) Net realized gains -- -- -- (0.70) (0.47) (0.52) - ---------------------------------------------------------------------------------------------- Total Distributions (0.26) (0.33) (0.31) (0.97) (0.73) (0.76) - ---------------------------------------------------------------------------------------------- Net Asset Value, End of Period $16.64 $15.68 $13.24 $17.47 $20.74 $19.83 - ---------------------------------------------------------------------------------------------- Total Return/(2)/ 7.77%++ 21.38% (22.45)% (11.58)% 8.62% 8.52% - ---------------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $372 $366 $346 $504 $553 $544 - ---------------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.71%+ 0.69% 0.68% 0.67% 0.66% 0.67% Net investment income 1.37+ 1.85 1.59 1.42 1.45 1.35 - ---------------------------------------------------------------------------------------------- Portfolio Turnover Rate 19% 96% 68% 29% 23% 43% - ----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited). (2) Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total returns for all periods shown. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 38 Travelers Series Fund Inc. | 2004 Semi-Annual Report FINANCIAL HIGHLIGHTS (CONTINUED) For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Strategic Equity Portfolio 2004/(1)/ 2003 2002 2001 2000 1999 - ----------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $15.16 $12.59 $16.67 $28.63 $28.35 $22.14 - ---------------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income (loss) 0.07 (0.03) 0.04 0.07 0.05 0.02 Net realized and unrealized gain (loss) 0.87 2.62 (4.05) (8.60) 2.66 7.79 - ---------------------------------------------------------------------------------------------- Total Income (Loss) From Operations 0.94 2.59 (4.01) (8.53) 2.71 7.81 - ---------------------------------------------------------------------------------------------- Less Distributions From: Net investment income -- (0.02) (0.07) (0.05) (0.03) (0.15) Net realized gains -- -- -- (3.38) (2.40) (1.45) - ---------------------------------------------------------------------------------------------- Total Distributions -- (0.02) (0.07) (3.43) (2.43) (1.60) - ---------------------------------------------------------------------------------------------- Net Asset Value, End of Period $16.10 $15.16 $12.59 $16.67 $28.63 $28.35 - ---------------------------------------------------------------------------------------------- Total Return/(2)/ 6.20%++ 20.57% (24.05)% (32.05)% 9.27% 35.51% - ---------------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $540 $550 $516 $845 $1,370 $1,166 - ---------------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.85%+ 0.84% 0.83% 0.82% 0.81% 0.82% Net investment income (loss) 0.88+ (0.20) 0.19 0.31 0.17 0.14 - ---------------------------------------------------------------------------------------------- Portfolio Turnover Rate 106% 167% 100% 46% 47% 54% - ----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited). (2) Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total returns for all periods shown. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 39 Travelers Series Fund Inc. | 2004 Semi-Annual Report FINANCIAL HIGHLIGHTS (CONTINUED) For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted:
Van Kampen Enterprise Portfolio 2004/(1)/ 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $11.03 $ 9.40 $11.81 $25.60 $25.52 $20.56 - ----------------------------------------------------------------------------------------------- Income (Loss) From Operations: Net investment income (loss) 0.02 0.01 0.05 0.03 (0.06) 0.00* Net realized and unrealized gain (loss) -- 1.67 (2.42) (9.05) 3.87 5.42 - ----------------------------------------------------------------------------------------------- Total Income (Loss) From Operations 0.02 1.68 (2.37) (9.02) 3.81 5.42 - ----------------------------------------------------------------------------------------------- Less Distributions From: Net investment income (0.02) (0.05) (0.04) (0.00)* (0.00)* (0.07) Net realized gains -- -- -- (4.77) (3.73) (0.39) - ----------------------------------------------------------------------------------------------- Total Distributions (0.02) (0.05) (0.04) (4.77) (3.73) (0.46) - ----------------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.03 $11.03 $ 9.40 $11.81 $25.60 $25.52 - ----------------------------------------------------------------------------------------------- Total Return/(2)/ 0.14%++ 17.93% (20.07)% (37.52)% 13.92% 26.48% - ----------------------------------------------------------------------------------------------- Net Assets, End of Period (millions) $88 $97 $100 $165 $331 $313 - ----------------------------------------------------------------------------------------------- Ratios to Average Net Assets: Expenses 0.79%+ 0.80% 0.76% 0.74% 0.72% 0.73% Net investment income (loss) 0.26+ 0.13 0.30 0.18 (0.22) 0.01 - ----------------------------------------------------------------------------------------------- Portfolio Turnover Rate 88% 123% 87% 107% 117% 120% - -----------------------------------------------------------------------------------------------
(1) For the six months ended April 30, 2004 (unaudited). (2) Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total returns for all periods shown. * Amount represents less than $0.01 per share. ++ Total return is not annualized, as it may not be representative of the total return for the year. + Annualized. 40 Travelers Series Fund Inc. | 2004 Semi-Annual Report TRAVELERS SERIES FUND INC. DIRECTORS INVESTMENT MANAGERS A. E. Cohen Smith Barney Fund Management LLC Robert A. Frankel Travelers Investment Adviser, Inc. Michael E. Gellert R. Jay Gerken, CFA CUSTODIAN Chairman State Street Bank and Rainer Greeven Trust Company Susan M. Heilbron ANNUITY OFFICERS ADMINISTRATION R. Jay Gerken, CFA Travelers Annuity Investor Services President and Chief One Cityplace Executive Officer Hartford, CT 06103-3415 Andrew B. Shoup Senior Vice President and Chief Administrative Officer John B. Cunningham Vice President and Investment Officer Kaprel Ozsolak Controller Andrew Beagley Chief Anti-Money Laundering Compliance Officer Robert I. Frenkel Secretary and Chief Legal Officer Travelers Series Fund Inc. Smith Barney Large Cap Value Portfolio Strategic Equity Portfolio Van Kampen Enterprise Portfolio The Funds are separate investment funds of the Travelers Series Fund Inc., a Maryland corporation. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by telephoning the Funds (toll-free) at 1-800-451-2010 and by visiting the SEC's web site at www.sec.gov. This report is submitted for the general information of the shareholders of Travelers Series Fund Inc. -- Smith Barney Large Cap Value Portfolio, Strategic Equity Portfolio and Van Kampen Enterprise Portfolio. TRAVELERS SERIES FUND INC. 125 Broad Street 10th Floor, MF-2 New York, New York 10004 IN0801 6/04 04-6760 ITEM 2. CODE OF ETHICS. Not Applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not Applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a) Not applicable. (b) Attached hereto. Exhibit 99.CERT Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized. TRAVELERS SERIES FUND INC. By: /s/ R. Jay Gerken -------------------------------- (R. Jay Gerken) Chief Executive Officer of Travelers Series Fund Inc. Date: July 9, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ R. Jay Gerken -------------------------------- (R. Jay Gerken) Chief Executive Officer of Travelers Series Fund Inc. Date: July 9, 2004 By: /s/ Andrew B. Shoup -------------------------------- (Andrew B. Shoup) Chief Administrative Officer of Travelers Series Fund Inc. Date: July 9, 2004 EX-99.CERT 2 dex99cert.txt CERTIFICATION PURSUANT TO SECTION 302 CERTIFICATIONS PURSUANT TO SECTION 302 EX-99.CERT CERTIFICATIONS I, R. Jay Gerken, certify that: 1. I have reviewed this report on Form N-CSR of Travelers Series Fund Inc. - Smith Barney Large Cap Value 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-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ R. Jay Gerken ------------------------------ R. Jay Gerken Chief Executive Officer I, Andrew B. Shoup, certify that: 1. I have reviewed this report on Form N-CSR of Travelers Series Fund Inc. - Smith Barney Large Cap Value 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-3(c) under the Investment Company Act) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ Andrew B. Shoup ------------------------------ Andrew B. Shoup Chief Administrative 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-CSR of Travelers Series Fund Inc. - Strategic Equity 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-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ R. Jay Gerken ------------------------------ R. Jay Gerken Chief Executive Officer I, Andrew B. Shoup, certify that: 1. I have reviewed this report on Form N-CSR of Travelers Series Fund Inc. - Strategic Equity 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-3(c) under the Investment Company Act) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ Andrew B. Shoup ------------------------------ Andrew B. Shoup Chief Administrative 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-CSR of Travelers Series Fund Inc. - Van Kampen Enterprise 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-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ R. Jay Gerken ------------------------------ R. Jay Gerken Chief Executive Officer I, Andrew B. Shoup, certify that: 1. I have reviewed this report on Form N-CSR of Travelers Series Fund Inc. - Van Kampen Enterprise 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-3(c) under the Investment Company Act) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial data; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 9, 2004 /s/ Andrew B. Shoup ------------------------------ Andrew B. Shoup Chief Administrative Officer EX-99.906CERT 3 dex99906cert.txt CERTIFICATION PURSUANT TO SECTION 906 CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Andrew B. Shoup, Chief Administrative Officer of Travelers Series Fund Inc. - Smith Barney Large Cap Value Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30,2004 (the "Form N-CSR") 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-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Administrative Officer Travelers Series Fund Inc. - Travelers Series Fund Inc. - Smith Barney Large Cap Value Portfolio Smith Barney Large Cap Value Portfolio /s/ R. Jay Gerken /s/ Andrew B. Shoup - ------------------------- ------------------------- R. Jay Gerken Andrew B. Shoup Date: July 9, 2004 Date: July 9, 2004 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-CSR with the Commission. CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Andrew B. Shoup, Chief Administrative Officer of Travelers Series Fund Inc. - Strategic Equity Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30,2004 (the "Form N-CSR") 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-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Administrative Officer Travelers Series Fund Inc. - Travelers Series Fund Inc. - Strategic Equity Portfolio Strategic Equity Portfolio /s/ R. Jay Gerken /s/ Andrew B. Shoup - ------------------------- ------------------------- R. Jay Gerken Andrew B. Shoup Date: July 9, 2004 Date: July 9, 2004 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-CSR with the Commission. CERTIFICATIONS PURSUANT TO SECTION 906 EX-99.906CERT CERTIFICATION R. Jay Gerken, Chief Executive Officer, and Andrew B. Shoup, Chief Administrative Officer of Travelers Series Fund Inc. - Van Kampen Enterprise Portfolio (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30,2004 (the "Form N-CSR") 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-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Chief Executive Officer Chief Administrative Officer Travelers Series Fund Inc. - Travelers Series Fund Inc. - Van Kampen Enterprise Portfolio Van Kampen Enterprise Portfolio /s/ R. Jay Gerken /s/ Andrew B. Shoup - ------------------------- ------------------------- R. Jay Gerken Andrew B. Shoup Date: July 9, 2004 Date: July 9, 2004 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-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----