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MERRILL LYNCH
SERIES FUND, INC.
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1994 Semi-Annual Report
June 30, 1994
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994
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DEAR SHAREHOLDER:
We are pleased to submit this semi-annual report for Merrill Lynch Series Fund,
Inc., in which we summarize the investment performance of each of the Fund's
Portfolios and outline our view of the investment environment. Performance
information for each Portfolio in Merrill Lynch Series Fund, Inc., excluding the
Money Reserve Portfolio, can be found in the tables on pages 6 and 7 of this
report to shareholders.
THE ENVIRONMENT
A sharp change in investor sentiment occurred during the six-month period ended
June 30, 1994. Following a series of better-than-expected economic results, the
Federal Reserve Board began to pursue a less accommodative monetary policy,
raising short-term interest rates a total of four times from February through
June month-end. The expectation of increasing inflationary pressures and higher
interest rates initially heightened investor concerns and increased financial
market volatility during the period. However, as the period drew to a close, it
was the weakness of the US dollar in foreign exchange markets that dominated the
financial news and prolonged stock and bond market declines.
The US dollar's weakness relative to other major currencies reflects the
deteriorating US trade deficit and widening net long-term capital outflows. In
1993, an expanding US economy and recession in other industrial countries led to
a higher level of imports and weaker export growth, widening the US trade
deficit further. In addition, global investors favored non-US dollar denominated
assets throughout 1993, which has further depressed the dollar's value. This
trend is not improving significantly thus far in 1994 since foreign inflows into
US capital markets continue to decline, although US investors are investing
outside of the United States to a lesser degree.
Over the longer term, if the economies of the United States' major trading
partners expand (improving the prospects for US export growth), the outlook for
the US dollar is likely to improve. In the near term, central banks have
attempted to reverse the dollar's decline through currency market intervention.
These efforts have met with limited success thus far, giving rise to the concern
that the Federal Reserve Board will be forced to continue to raise short-term
interest rates to attract investment capital back to the United States and
bolster the dollar's value. However, further interest rate increases may
jeopardize the US economic expansion. In the weeks ahead, investors will
continue to assess economic data and inflationary trends as they focus on the US
dollar in order to gauge whether further increases in short-term interest rates
are imminent.
BALANCED PORTFOLIO
As of June 30, 1994, the Portfolio's asset allocation was: stocks (45%), bonds
(49%), and cash (6%). We increased the weighting in US bonds during the first
half of the year, taking advantage of the rise in intermediate-term and
long-term interest rates. Assets remained allocated to US Treasury obligations
with an average duration of six years. The expansion of bond weightings
reflected expectations that US intermediate-term and long-term interest rates
could decline in coming months. Lower interest rates could result if the Federal
Reserve Board continues its gradual tightening of monetary policy through
further increases in short-term interest rates during the second half of 1994.
This policy is likely to result in a slowdown in the US economy and could reduce
fears of a resurgence of inflation.
On the other hand, these economic conditions could result in a continuing
unfavorable relative performance of US equities. The expectations of an economic
slowdown could raise concerns over the sustainability of earnings progress for
US companies over the next 12 months-18 months. In view of this outlook, we
reduced our commitment to US equities through the sale of AMR Corp., K mart
Corp. and May Department Stores. We established a position in Merck & Co.,
reflecting our opinion that the reward/risk relationship for pharmaceutical
equities is now favorable following an extended period of underperformance. Our
favorable assessment of the healthcare industry does not extend to other
1
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994 (Continued)
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consumer staple groups, so that we remain underweighted in the consumer staples
sector. On the other hand, a slower US economy will affect the capital spending
and energy sectors to a lesser extent than is the case for consumer durable
equities. On this basis, we continue to overweight the capital spending and
energy sectors.
CAPITAL STOCK PORTFOLIO
Although estimates of gross domestic product (GDP) for the first quarter have
been revised upward twice from an original 2.6% to 3.3%, we continue to expect
GDP growth to decelerate. Flat money supply growth during the past two months
and rising interest rates suggest key industries, including housing and autos,
will not be as stimulative to the economy as in the past. Recent weakness of the
US dollar in the foreign exchange markets has discouraged capital from flowing
into US stocks and bonds. This should reverse as we expect the productivity in
the United States to continue to rise, the trade imbalance to improve and the
budget deficit to continue to decline. Furthermore, we expect the US equity
markets to strengthen in the quarters ahead as corporate profits continue strong
and we move further into an earnings-driven stock market environment. The
economic outlook for most of our major trading partners is belatedly improving,
which should fuel demand for US products, particularly since they were
effectively marked down by dollar weakness. We continue to emphasize companies
with strong and predictable earnings growth prospects, especially firms which
are not heavily dependent on economic conditions for earnings growth.
GLOBAL STRATEGY PORTFOLIO
As of June 30, 1994, the Portfolio's asset allocation was: US stocks (15%),
foreign stocks (50%), US bonds (19%), foreign bonds (10%), and cash (6%). We
took advantage of higher interest rates in the US bond market to increase the US
fixed-income weighting during the first half of 1994. In our opinion, the
uptrend in intermediate-term and long-term interest rates in the United States
could give way to a decline during the second half of this year. Lower US
interest rates could result from evidence that a tightening of monetary policy
by the Federal Reserve Board is producing slower economic growth and is reducing
the probability of an acceleration of US inflation. We eliminated our positions
in French and Swedish bonds and reestablished a position in German bonds.
In the equity sector, we continued to enlarge our position in Japan. New
positions included Sumitomo Corp., Komatsu, Ltd., Tokio Marine & Fire Insurance
Co., Ltd., Mitsubishi Electric Corp. and Toray Industries. We believe that
evidence of an economic recovery and expectations of an earnings rebound should
result in continuing favorable relative performance for Japanese equities. We
reduced our position in emerging Asian markets through the elimination of our
commitments in Malaysia and Thailand. We have shifted our focus in emerging
markets more toward Latin America, where relative valuations seem more
attractive. Our position in US equities remains underweighted. The expected
progressive tightening of monetary policy, while favorable for US bonds, could
raise concerns over the sustainability of corporate earnings improvement in the
United States. On this basis, the US stock market is likely to continue to
underperform other equity markets in the months ahead.
GROWTH STOCK PORTFOLIO
The negative rate of return for the Growth Stock Portfolio so far during 1994 is
primarily the result of the substantial decline in valuation ratios for many
growth companies. A rise in inflationary expectations since early 1994
accompanied by a series of increases in the Federal Funds rate starting on
February 4, 1994 has resulted in a rapid rise in interest rates. As a defensive
action beginning on March 18, 1994, we substantially increased the Portfolio's
cash reserve position from 5.6% of net assets to 48.4%. The substantial
increases in financing rates for motor vehicle and residential home purchases in
conjunction with the increase in personal income taxes on upper income
households may result in a greater-than-anticipated slowdown of the US economy.
This development may result in lower-than-forecast corporate earnings and
further meaningful declines in the overall equity market.
2
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994 (Continued)
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We raised the Portfolio's cash reserve position by reducing the weightings of
many of the individual stock holdings where primarily capital gains would be
realized. We substantially reduced our investment exposure to
large-capitalization growth companies in Mexico as part of the process of
raising cash reserves. The telecommunications industry, at 9.3% of net assets at
mid-year 1994, continues to be the largest industry weighting in the Portfolio.
The strategic focus of the Portfolio is on companies where managements appear to
have the ability to produce above-average rates of return and growth in earnings
over the long term. Many such companies are global companies in the
broadcast-media, automotive, insurance, broadcasting-cable and consumer products
industries.
HIGH YIELD PORTFOLIO
During the period ended June 30, 1994, the high-yield bond market eroded further
in sympathy with intermediate-term and long-term US Treasury securities. The
latter markets were reacting to further Federal Reserve Board tightening.
Valuation remained little changed, with the yield premium of the Merrill Lynch
High Yield Master Index only slightly lower at 45% on June 30, 1994, compared
with 46.4% at the beginning of the period.
The market turbulence created a number of attractive buying opportunities, and
our strategy involved selective buying during periods of pronounced weakness.
Over the course of the June period, new purchases ranged from 10.25% to 13.50%,
with an average yield of 12.375%. While it is difficult to say how much further
the trend to higher short-term interest rates may go, rising interest rates
bring the risk of economic weakening. With the impact of a softening economy on
corporate profits in mind, we have begun to move away from companies whose
earnings are correlated closely with the business cycle and into less-cyclical
holdings. We are also tending to migrate up the credit quality ladder,
increasing the portion of the Portfolio invested in BB-rated securities and
lowering the portion of holdings invested in B-rated securities. The yield
spreads between securities rated BB and those rated B are very tight
historically, at about 160 basis points (1.60%).
The positives for the high-yield market include excellent long-term valuations,
generally stable-to-improving credit quality as the result of strong corporate
profits and the continuing trend of reequitization (the replacement of debt with
equity on corporate balance sheets). The major negative is the overall
environment of rising short-term interest rates and soft bond prices. We expect
that this difficult period will provide opportunities to improve the Portfolio.
At June 30, 1994, average maturity of the Portfolio was eight years. Major
industries represented in the Portfolio included: energy, 12% of net assets;
hotels and casinos, 9.8%; food and beverage, 12.5%; and conglomerates, 6.0%.
INTERMEDIATE GOVERNMENT BOND PORTFOLIO
Even though the rate of inflation remained contained during the first half of
the year, interest rates jumped at a faster pace than we have seen in a decade.
This was partly in response to the activity of the Federal Reserve Board, which
tightened short-term interest rates four times during the period. Other factors
also contributed to the jump in interest rates. These included the collapse of
trade talks with Japan, which led to a drop in the value of the US dollar to a
historic low in relation to the yen. Investors were also concerned about the
uncertainty surrounding the growing tension on the Korean peninsula, the
Whitewater situation and the assassination of a Mexican presidential candidate.
During the period, the interest rate on three-year US Treasury securities rose
from 4.61% to 6.47%.
Because of our concern that interest rates would continue to rise, we adopted a
defensive strategy and shortened the average maturity of the portfolio from 7.31
years to 5.91 years. We achieved this through the sale of nine-year and ten-year
US Treasury issues and the purchase of two-year and five-year Agency
obligations. We also built up the Portfolio's cash position.
3
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994 (Continued)
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LONG-TERM CORPORATE BOND PORTFOLIO
Even though the rate of inflation remained contained during the first half of
the year, interest rates rose at the fastest pace in a decade during the six
months ended June 30, 1994. This was partly in response to the activity of the
Federal Reserve Board, which tightened short-term interest rates four times
during the period. Other factors also contributed to the jump in interest rates.
These included the collapse of trade talks with Japan, which led to a drop in
the value of the US dollar to a historic low in relation to the yen. Investors
were also concerned about the uncertainty surrounding the growing tension on the
Korean peninsula, the Whitewater situation and the assassination of a Mexican
presidential candidate. During the period, the interest rate on long-term US
Treasury securities rose from 6.41% to 7.61%.
As interest rates rose, we shortened the average maturity of the Portfolio from
10.20 years to 8.09 years. We reduced the duration from 6.16 years to 4.65
years. This was accomplished by the sale of long-term maturity issues of
electric utility companies which we believe will be coming under competitive
pressure. We also reduced our holdings of banks and thrift institutions. We
invested the proceeds in consumer financial services and foreign sovereign
credits. We increased the Portfolio's cash and liquidity holdings positions as
well. This cautious strategy reflected our concern that interest rates would
continue to rise.
MONEY RESERVE PORTFOLIO
For the six-month period ended June 30, 1994, the Money Reserve Portfolio's net
annualized yield was 3.39%*. The Portfolio's 7-day yield as of June 30, 1994 was
4.01% (excluding gains and losses) and 4.01% (including gains and losses).
For the six months ended June 30, 1994, Money Reserve Portfolio's investment
outlook became progressively less optimistic, as reflected in our average
portfolio maturity which peaked at a high of 80 days early in the period and
subsequently declined to a low of 49 days. For the most part, since the end of
1993, interest rates have risen on the heels of continued economic expansion and
modest inflation. During this time frame, the Federal Reserve Board has
implemented a tightening of monetary policy, raising the Federal Funds rate four
times to its current level of 4.25% and the discount rate to 3.50%.
Since our last shareholders' report, we have adopted a more defensive investment
strategy for the Portfolio. We reduced the Portfolio's average life by selling
longer-term Treasury securities as well as through attrition. New investments
during this period mostly have been restricted to money market securities with
maturities ranging from overnight to 90 days. As a further hedge against rising
interest rates, the Portfolio has maintained approximately 30% of its assets in
variable rate products.
Currently, the Portfolio's average life is 42 days. We will continue to remain
conservative in our commitment to the market until the Federal Reserve Board
takes a clearer position on its monetary policy.
MULTIPLE STRATEGY PORTFOLIO
Although first quarter estimates of GDP have been revised upward twice from an
original 2.6% to 3.3%, we continue to expect GDP growth to decelerate. Flat
money supply growth during the past two months and rising interest rates suggest
key industries, including housing and automobiles, will not be as stimulative to
the economy as in the past. Recent weakness of the US dollar in the foreign
exchange markets has discouraged capital from flowing into US stocks and bonds.
This should reverse as we expect the productivity in the United States to
continue to rise, the trade imbalance to improve and the budget deficit to
continue to decline. Furthermore, we expect the US equity markets to strengthen
in the quarters ahead as corporate profits continue strong and we move further
into an earnings-driven stock market environment. The economic outlook for most
of our major trading partners is belatedly improving, which should fuel demand
for US products, particularly since they were effectively marked down by dollar
weakness. We continue to emphasize companies with strong and predictable
earnings growth prospects, especially firms which are not heavily dependent on
economic conditions for earnings growth.
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* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
4
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994 (Continued)
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Concerns over inflation, based on rising commodity prices and US dollar
weakness, seem overdone, although it is reasonable to expect interest rates to
rise on a worldwide basis as global demand re-accelerates. Since we expect
equities to benefit from higher earnings and increasing dividends, and the bulk
of total return from bond to be derived from the current yield, the asset mix
shift is likely to favor equities in the quarters just ahead.
NATURAL RESOURCES PORTFOLIO
Strong demand for basic resources in both the United States and the developing
countries, along with evidence of economic recovery in Europe, helped push
commodity prices higher in many industrial sectors (such as base metals,
chemicals and paper products) during the period ended June 30. This general rise
in commodity prices, however, prompted the US Federal Reserve Board to raise
short-term interest rates to head off inflation pressures which, in turn,
unsettled stock and bond markets worldwide. After strong price rises in January,
shares of many natural resource-related companies were sold as investors feared
rising interest rates would put a damper on economic growth worldwide and
thereby lower the demand for basic resources.
While this trend toward higher interest rates may keep downward pressure on the
world's equity markets in the near term, we remain optimistic about the outlook
for commodity pricing in general. The reason for higher interest rates in the
United States is a strong economy which, combined with prospects of economic
recovery in Europe and Japan, should support the underlying demand for basic
resources. This should lead to an improving earnings outlook, particularly for
many of the economically sensitive natural resources companies.
Within the Portfolio, our largest exposure is to the energy sector. The decision
in March by the Organization of Petroleum Exporting Countries to maintain its
production quotas at current levels through the end of 1994 resulted in a sharp
decline in oil prices and energy-related stocks. Investors feared this agreement
would leave oil markets oversupplied as we entered the spring, traditionally a
weak period of demand. We used this weakness as an opportunity to purchase
select integrated, producing and oil service companies. We expected a more
positive pricing environment to emerge as improving fundamentals (including
below-normal inventories and steadily increasing demand) acted to tighten
supply/demand conditions as we moved toward the end of the year. In fact, oil
prices have already begun to discount this scenario and have risen sharply from
their lows in March. In addition, continuing corporate restructuring benefits as
well as refining and chemicals margin improvement should allow many of these
energy companies to maintain positive cash flow and earnings growth.
We also continue to focus on the industrial side of the business cycle where
growing worldwide demand is likely to improve the pricing environment for many
basic commodities. Accordingly, we increased the Portfolio's exposure to the
base metals sector and the paper and forest products sector, both of which
should be among the prime beneficiaries of increasing economic activity
worldwide. In addition, we initiated positions in several major gold producing
companies. While inflation at the consumer level remains subdued, pockets of
inflation pressures are building in the economy, particularly in industrial
commodity prices. The supply/demand fundamentals for gold are also turning more
positive. These factors should support gold prices and allow them to trend
higher in the long term.
IN CONCLUSION
We appreciate your investment in Merrill Lynch Series Fund, Inc., and we look
forward to sharing our investment outlook and objectives with you in our
December annual report to shareholders.
Sincerely,
Terry K. Glenn
President
August 16, 1994
5
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994
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RECENT PERFORMANCE RESULTS
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<TABLE>
<CAPTION>
12 MONTH 6 MONTH
6/30/94 12/31/93 6/30/93 % CHANGE % CHANGE
<S> <C> <C> <C> <C> <C>
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BALANCED PORTFOLIO $13.42 $14.62 $14.26 -4.69%(1) -7.03%(1)
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CAPITAL STOCK PORTFOLIO 21.04 25.73 23.00 -0.80 (2) -11.32 (2)
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GLOBAL STRATEGY PORTFOLIO 14.96 15.42 14.13 +6.91 (3) -2.03 (3)
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GROWTH STOCK PORTFOLIO 17.99 24.65 22.71 -11.47 (4) -18.44 (4)
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HIGH YIELD PORTFOLIO 9.05 9.68 9.54 -5.14 -6.51
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INTERMEDIATE GOVERNMENT BOND PORTFOLIO 10.65 12.02 12.10 -9.72 (5) -9.12 (5)
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LONG TERM CORPORATE BOND PORTFOLIO 11.07 12.59 12.55 -10.24 (6) -10.53 (6)
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MULTIPLE STRATEGY PORTFOLIO 16.15 19.84 18.17 -1.88 (7) -10.14 (7)
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NATURAL RESOURCES PORTFOLIO 7.37 7.53 7.85 -6.11 -2.12
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BALANCED PORTFOLIO -- TOTAL RETURN -1.07 (8) -5.24 (9)
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CAPITAL STOCK PORTFOLIO -- TOTAL RETURN +3.36 (10) -8.40 (11)
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GLOBAL STRATEGY PORTFOLIO -- TOTAL RETURN +10.43 (12) -0.25 (13)
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GROWTH STOCK PORTFOLIO -- TOTAL RETURN -5.34 (14) -13.40 (15)
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HIGH YIELD PORTFOLIO -- TOTAL RETURN +4.63 (16) -1.89 (17)
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INTERMEDIATE GOVERNMENT BOND PORTFOLIO -- TOTAL RETURN -2.79 (18) -5.22 (19)
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LONG TERM CORPORATE BOND PORTFOLIO -- TOTAL RETURN -2.16 (20) -5.63 (21)
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MULTIPLE STRATEGY PORTFOLIO -- TOTAL RETURN +3.25 (22) -6.92 (23)
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NATURAL RESOURCES PORTFOLIO -- TOTAL RETURN -4.52 (24) -1.21 (25)
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</TABLE>
(1) Percent change includes reinvestment of $0.180 per share capital gains
distributions.
(2) Percent change includes reinvestment of $1.922 per share capital gains
distributions.
(3) Percent change includes reinvestment of $0.147 per share capital gains
distributions.
(4) Percent change includes reinvestment of $2.405 per share capital gains
distributions.
(5) Percent change includes reinvestment of $0.295 per share capital gains
distributions.
(6) Percent change includes reinvestment of $0.212 per share capital gains
distributions.
(7) Percent change includes reinvestment of $1.792 per share capital gains
distributions.
(8) Percent change includes reinvestment of $0.530 per share ordinary income
dividends and $0.180 per share capital gains distributions.
(9) Percent change includes reinvestment of $0.276 per share ordinary income
dividends and $0.180 per share capital gains distributions.
(10) Percent change includes reinvestment of $1.008 per share ordinary income
dividends and $1.922 per share capital gains distributions.
(11) Percent change includes reinvestment of $0.814 per share ordinary income
dividends and $1.922 per share capital gains distributions.
(12) Percent change includes reinvestment of $0.476 per share ordinary income
dividends and $0.147 per share capital gains distributions.
(13) Percent change includes reinvestment of $0.276 per share ordinary income
dividends and $0.147 per share capital gains distributions.
(14) Percent change includes reinvestment of $1.570 per share ordinary income
dividends and $2.405 per share capital gains distributions.
(15) Percent change includes reinvestment of $1.414 per share ordinary income
dividends and $2.405 per share capital gains distributions.
(16) Percent change includes reinvestment of $0.929 per share ordinary income
dividends.
(17) Percent change includes reinvestment of $0.455 per share ordinary income
dividends.
(18) Percent change includes reinvestment of $0.862 per share ordinary income
dividends and $0.295 per share capital gains distributions.
(19) Percent change includes reinvestment of $0.475 per share ordinary income
dividends and $0.295 per share capital gains distributions.
(20) Percent change includes reinvestment of $1.052 per share ordinary income
dividends and $0.212 per share capital gains distributions.
(21) Percent change includes reinvestment of $0.633 per share ordinary income
dividends and $0.212 per share capital gains distributions.
(22) Percent change includes reinvestment of $0.961 per share ordinary income
dividends and $1.792 per share capital gains distributions.
(23) Percent change includes reinvestment of $0.682 per share ordinary income
dividends and $1.792 per share capital gains distributions.
(24) Percent change includes reinvestment of $0.129 per share ordinary income
dividends.
(25) Percent change includes reinvestment of $0.070 per share ordinary income
dividends.
6
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MERRILL LYNCH SERIES FUND, INC.
Semi-Annual Report
June 30, 1994
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
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<TABLE>
<CAPTION>
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
6/30/94 6/30/94 6/30/94 TO 6/30/94
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO - 1.07 % + 8.98% -- +10.15% +
- --------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK PORTFOLIO + 3.36 % + 10.30% + 13.55% --
- --------------------------------------------------------------------------------------------------------------------
GLOBAL STRATEGY PORTFOLIO +10.43 % + 12.38% -- +10.44% ++
- --------------------------------------------------------------------------------------------------------------------
GROWTH STOCK PORTFOLIO - 5.34 % + 5.30% + 10.30% --
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO + 4.63 % + 11.81% -- +11.26% +++
- --------------------------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND PORTFOLIO - 2.79 % + 8.23% + 10.42% --
- --------------------------------------------------------------------------------------------------------------------
LONG TERM CORPORATE BOND PORTFOLIO - 2.16 % + 8.75% + 11.66% --
- --------------------------------------------------------------------------------------------------------------------
MULTIPLE STRATEGY PORTFOLIO + 3.25 % + 10.71% -- +11.78% ++++
- --------------------------------------------------------------------------------------------------------------------
NATURAL RESOURCES PORTFOLIO - 4.52 % + 4.34% -- - 1.89% +++++
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Balanced Portfolio commenced operations on 5/2/88.
++ Global Strategy Portfolio commenced operations on 7/1/87.
+++ High Yield Portfolio commenced operations on 5/1/86.
++++ Multiple Strategy Portfolio commenced operations on 5/2/85.
+++++ Natural Resources Portfolio commenced operations on 7/1/87.
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SEPARATE ACCOUNT AVERAGE ANNUAL TOTAL RETURNS*
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<TABLE>
<CAPTION>
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
6/30/94 6/30/94 6/30/94 TO 6/30/94
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO -10.96 % + 6.55% -- + 8.11% +
- --------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK PORTFOLIO - 6.57 % + 7.92% + 11.96% --
- --------------------------------------------------------------------------------------------------------------------
GLOBAL STRATEGY PORTFOLIO + 0.43 % + 10.04% -- + 8.48% ++
- --------------------------------------------------------------------------------------------------------------------
GROWTH STOCK PORTFOLIO -15.19 % + 2.74% + 8.49% --
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO - 5.31 % + 9.41% -- + 9.45% +++
- --------------------------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND PORTFOLIO -12.67 % + 5.77% + 8.88% --
- --------------------------------------------------------------------------------------------------------------------
LONG TERM CORPORATE BOND PORTFOLIO -12.04 % + 6.30% + 10.18% --
- --------------------------------------------------------------------------------------------------------------------
MULTIPLE STRATEGY PORTFOLIO - 6.68 % + 8.34% -- + 10.11% ++++
- --------------------------------------------------------------------------------------------------------------------
NATURAL RESOURCES PORTFOLIO -14.38 % + 1.74% -- - 4.46% +++++
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* Returns assume the separate account had been in existence and a contract
had been in force during the periods shown. They reflect a separate
account mortality and expense risk charge at an annual rate of 0.90% and
a deferred contract load of 9%. They do not reflect quarterly cost of
insurance. Returns would be lower if they reflected the deduction of
cost of insurance, which can vary by age, sex, and rating class of the
insured, and by each contract's net amount at risk.
Some contract owners have lower mortality and expense risk charges
and/or lower deferred contract load than those reflected above. Average
annual rates of return for those contract owners would, therefore, be
higher than the returns shown above. Some contract owners pay
administrative fees that could have the effect of reducing the returns
shown above. All charges and fees are described in the product
prospectuses. See those prospectuses for more complete information.
+ Balanced Portfolio commenced operations on 5/2/88.
++ Global Strategy Portfolio commenced operations on 7/1/87.
+++ High Yield Portfolio commenced operations on 5/1/86.
++++ Multiple Strategy Portfolio commenced operations on 5/2/85.
+++++ Natural Resources Portfolio commenced operations on 7/1/87.
Investment results and principal value will fluctuate so that an investment may
be worth more or less than its original cost. Past performance illustrated
should not be considered a representation of future performance.
7
<PAGE> 9
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MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE (NOTE PERCENT OF
AMOUNT ISSUE COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT OBLIGATIONS
- ---------------------------------------------------------------------------------------------------------------------------
US TREASURY NOTES US Treasury Notes:
$1,500,000 6.375% due 1/15/2000.................... $ 1,532,578 $ 1,457,115 1.8%
1,500,000 8.50% due 2/15/2000..................... 1,476,094 1,601,955 2.0
6,600,000 5.50% due 4/15/2000..................... 6,624,266 6,135,954 7.7
3,000,000 7.75% due 2/15/2001..................... 3,027,188 3,093,270 3.9
6,000,000 8.00% due 5/15/2001..................... 5,948,125 6,267,180 7.9
1,000,000 7.875% due 8/15/2001.................... 1,020,156 1,037,500 1.3
6,250,000 6.375% due 8/15/2002.................... 6,181,230 5,902,313 7.5
8,200,000 6.25% due 2/15/2003..................... 8,397,250 7,643,958 9.7
4,400,000 5.75% due 8/15/2003..................... 4,418,578 3,938,000 5.0
500,000 5.875% due 2/15/2004.................... 457,734 449,455 0.6
1,600,000 7.25% due 5/15/2004..................... 1,629,250 1,590,992 2.0
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT OBLIGATIONS 40,712,449 39,117,692 49.4
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
SHARES
INDUSTRY HELD COMMON STOCKS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
AEROSPACE 19,000 United Technologies Corp. .............. 913,578 1,220,750 1.5
- ---------------------------------------------------------------------------------------------------------------------------
ALUMINUM 17,500 Aluminum Co. of America................. 1,155,337 1,279,688 1.6
- ---------------------------------------------------------------------------------------------------------------------------
BANKING 20,500 Morgan (J.P.) & Co. .................... 1,232,207 1,268,438 1.6
- ---------------------------------------------------------------------------------------------------------------------------
CHEMICALS 26,250 Eastman Chemical Co. ................... 1,101,189 1,253,438 1.6
38,000 Nalco Chemical Co. ..................... 1,193,145 1,211,250 1.5
------------ ------------ ----------
2,294,334 2,464,688 3.1
- ---------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 55,000 Kelly Services, Inc. ................... 1,450,000 1,485,000 1.9
- ---------------------------------------------------------------------------------------------------------------------------
DRUGS 26,000 Bristol-Myers Squibb Co. ............... 1,596,779 1,394,250 1.8
- ---------------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 82,000 California Energy Co. Inc............... 1,403,585 1,353,000 1.7
- ---------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 78,256 +Wheelabrator Technologies Inc........... 993,005 1,457,518 1.8
- ---------------------------------------------------------------------------------------------------------------------------
FOODS 56,224 Archer-Daniels-Midland Co. ............. 1,308,332 1,307,208 1.7
- ---------------------------------------------------------------------------------------------------------------------------
HARDWARE PRODUCTS 34,000 Stanley Works Co. ...................... 1,340,289 1,368,500 1.7
- ---------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 73,000 Humana Inc. ............................ 583,847 1,177,125 1.5
- ---------------------------------------------------------------------------------------------------------------------------
MACHINERY 39,000 Ingersoll-Rand Co. ..................... 1,008,480 1,369,875 1.7
53,000 Keystone International, Inc. ........... 1,339,060 1,033,500 1.3
57,000 Morrison Knudsen Corp. ................. 1,256,435 1,225,500 1.6
------------ ------------ ----------
3,603,975 3,628,875 4.6
- ---------------------------------------------------------------------------------------------------------------------------
NATURAL GAS 37,100 Consolidated Natural Gas Co. ........... 1,536,522 1,400,525 1.8
- ---------------------------------------------------------------------------------------------------------------------------
OFFICE RELATED 17,500 Hewlett-Packard Co. .................... 898,827 1,319,062 1.7
34,000 Pitney Bowes, Inc. ..................... 1,089,523 1,300,500 1.6
------------ ------------ ----------
1,988,350 2,619,562 3.3
- ---------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 38,000 Phillips Petroleum Co. ................. 1,075,140 1,187,500 1.5
- ---------------------------------------------------------------------------------------------------------------------------
PETROLEUM & EQUIPMENT 54,500 Dresser Industries, Inc. ............... 1,040,009 1,117,250 1.4
SERVICE
- ---------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 45,000 Merck & Co., Inc. ...................... 1,536,450 1,338,750 1.7
- ---------------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 26,000 Eastman Kodak Co. ...................... 1,002,006 1,251,250 1.6
- ---------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 28,000 Gannett Co., Inc. ...................... 1,239,100 1,386,000 1.8
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 10
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD COMMON STOCKS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR 50,000 +Teradyne, Inc........................... $ 742,766 $ 1,325,000 1.7%
PRODUCTION EQUIPMENT
- ---------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 25,700 American Telephone & Telegraph Co.
(AT&T)................................. 1,020,834 1,397,437 1.8
27,600 Bell Atlantic Corp...................... 1,351,417 1,545,600 2.0
66,000 Comsat Corp............................. 1,647,695 1,534,500 1.9
------------ ------------ ----------
4,019,946 4,477,537 5.7
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 32,055,557 35,508,414 45.0
- ---------------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SHORT-TERM SECURITIES
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER* $1,162,000 General Electric Capital Corp., 4.30%
due 7/01/1994.......................... 1,161,861 1,161,861 1.4
3,000,000 Siemens Corp., 4.33% due 7/21/1994...... 2,992,422 2,992,422 3.7
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 4,154,283 4,154,283 5.1
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS....................... $ 76,922,289 78,780,389 99.5
===========
OTHER ASSETS LESS LIABILITIES........... 424,819 0.5
------------ ----------
NET ASSETS.............................. $ 79,205,208 100.0%
=========== ==========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commercial Paper is traded on a discount basis. The interest rates shown are
the discount rates paid at the time of purchase by the Portfolio.
+ Non-income producing security.
See Notes to Financial Statements.
9
<PAGE> 11
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
APPLIANCES 200,000 Singer Company N.V. ............... $ 5,586,479 $ 7,000,000 3.4%
304,000 Sunbeam-Oster Inc. ................ 6,134,372 6,080,000 2.9
------------- ------------- ----------
11,720,851 13,080,000 6.3
- ----------------------------------------------------------------------------------------------------------------------------
AUTO & TRUCK 75,000 Consorcio G Grupo Dina, S.A. de
C.V. (ADR)*....................... 1,187,843 787,500 0.4
- ----------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 25,000 Ford Motor Co. .................... 1,539,460 1,475,000 0.7
- ----------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 90,000 Magna International, Inc. (Class
A)................................ 4,129,857 3,600,000 1.7
EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------------------
BANKING 30,000 +Banco Frances del Rio de la Plata
S.A. (ADR)*....................... 1,000,228 671,250 0.3
100,000 Bank of New York, Inc. ............ 2,944,066 2,887,500 1.4
80,000 BankAmerica Corp. ................. 3,608,208 3,660,000 1.8
60,000 Espirito Santo Financial Holdings
S.A. (ADR)*....................... 1,843,179 1,620,000 0.8
60,000 Grupo Financiero Serfin, S.A. de
C.V. (ADR)*....................... 1,496,021 1,057,500 0.5
------------- ------------- ----------
10,891,702 9,896,250 4.8
- ----------------------------------------------------------------------------------------------------------------------------
BEVERAGES 4,800 Panamerican Beverages Inc. ........ 122,400 115,800 0.1
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS 45,000 du Pont (E.I.) de Nemours & Co. ... 2,577,293 2,626,875 1.3
27,000 +IMC Fertilizer Group, Inc. ........ 1,217,259 934,875 0.5
50,000 Rohm and Haas Co. ................. 2,850,398 3,112,500 1.5
------------- ------------- ----------
6,644,950 6,674,250 3.3
- ----------------------------------------------------------------------------------------------------------------------------
COMMUNICATION 150,000 ADC Telecommunications Inc. ....... 4,915,456 6,037,500 2.9
EQUIPMENT 150,000 DSC Communications Corp. .......... 3,749,305 2,925,000 1.4
60,000 Motorola, Inc. .................... 3,039,278 2,670,000 1.3
40,000 Tellabs, Inc. ..................... 881,805 1,230,000 0.6
------------- ------------- ----------
12,585,844 12,862,500 6.2
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER EQUIPMENT 100,000 +Solectron Corp. ................... 2,117,589 2,537,500 1.2
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 175,000 Computer Sciences Corp. ........... 4,893,804 7,284,375 3.5
- ----------------------------------------------------------------------------------------------------------------------------
CONSUMER- 50,000 Duracell International, Inc. ...... 2,062,566 1,950,000 0.9
MISCELLANEOUS
- ----------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 90,000 Block (H&R), Inc. ................. 4,125,609 3,532,500 1.7
50,000 Kelly Services, Inc. (Class A)
(Non-Voting)...................... 1,349,043 1,350,000 0.7
------------- ------------- ----------
5,474,652 4,882,500 2.4
- ----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 50,000 Grainger (W.W.) Inc. .............. 3,190,982 3,193,750 1.5
75,000 Siebe PLC.......................... 658,370 633,221 0.3
------------- ------------- ----------
3,849,352 3,826,971 1.8
- ----------------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 175,000 California Energy Co., Inc. ....... 3,376,640 2,887,500 1.4
- ----------------------------------------------------------------------------------------------------------------------------
ENGINEERING & 120,000 +Empresas ICA Sociedad Controladora,
CONSTRUCTION S.A. de C.V. (ADR)*............... 2,440,842 2,880,000 1.4
- ----------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 375,000 +Wheelabrator Technologies Inc. .... 4,884,183 6,984,375 3.4
- ----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE 200,000 Humana Inc. ....................... 3,800,820 3,225,000 1.6
150,000 Physician Corp. ................... 3,055,017 3,375,000 1.6
55,000 US Healthcare, Inc. ............... 2,303,546 2,035,000 1.0
------------- ------------- ----------
9,159,383 8,635,000 4.2
- ----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 81,000 Procter & Gamble Co. .............. 4,450,692 4,323,375 2.1
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 12
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
INSURANCE 55,000 ITT Corp. ......................... $ 4,715,940 $ 4,489,375 2.2%
- ----------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS- CAPITAL 123,900 Thermo Electron Corp. ............. 5,006,713 4,615,275 2.2
- ----------------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY 90,000 Allied Signal, Inc. ............... 2,976,911 3,116,250 1.5
- ----------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 150,000 Danka Business Systems PLC
(ADR)*............................ 4,024,195 5,981,250 2.9
- ----------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 55,000 Mobil Corp. ....................... 4,330,911 4,489,375 2.2
30,000 Phillips Petroleum Co. ............ 852,707 937,500 0.4
25,000 Royal Dutch Petroleum Co. N.V.
(ADR)*............................ 2,079,228 2,615,625 1.3
------------- ------------- ----------
7,262,846 8,042,500 3.9
- ----------------------------------------------------------------------------------------------------------------------------
PACKAGING 80,000 Crown Cork & Seal Co., Inc. ....... 1,327,889 2,980,000 1.4
- ----------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST 65,000 Scott Paper Co. ................... 2,970,917 3,396,250 1.6
PRODUCTS 50,000 Willamette Industries, Inc. ....... 1,846,275 2,137,500 1.0
------------- ------------- ----------
4,817,192 5,533,750 2.6
- ----------------------------------------------------------------------------------------------------------------------------
PRECISION INSTRUMENTS 25,000 Perkin Elmer Corp. ................ 979,875 731,250 0.4
- ----------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 50,000 Gannett Co., Inc. ................. 2,440,207 2,475,000 1.2
- ----------------------------------------------------------------------------------------------------------------------------
RAILROADS 85,000 CSX Corp. ......................... 7,378,945 6,417,500 3.1
145,000 +Southern Pacific Railroad Corp. ... 3,024,870 2,845,625 1.4
------------- ------------- ----------
10,403,815 9,263,125 4.5
- ----------------------------------------------------------------------------------------------------------------------------
RETAIL 40,000 Phillips-Van Heusen Corp. ......... 905,050 1,005,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
SHIPPING 75,000 Transportacion Maritama de Mexico,
S.A. de C.V. (ADR)*............... 657,125 525,000 0.3
- ----------------------------------------------------------------------------------------------------------------------------
SOFTWARE 50,000 +Novell Inc. ....................... 932,991 831,250 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TIRES & RUBBER 40,000 Bandag, Inc. (Class A)............. 1,895,894 1,850,000 0.9
65,000 Cooper Tire & Rubber Co. .......... 649,770 1,503,125 0.7
------------- ------------- ----------
2,545,664 3,353,125 1.6
- ----------------------------------------------------------------------------------------------------------------------------
UTILITIES-COMMUNICATIONS 27,300 ALC Communications Inc. ........... 795,541 839,475 0.4
100,000 GTE Corp. ......................... 3,196,908 3,150,000 1.5
224,280 LDDS Communications Inc. .......... 4,930,759 3,868,830 1.9
265,000 MCI Communications, Corp. ......... 7,486,412 5,863,125 2.8
90,000 +Southwestern Bell Corp. ........... 3,840,650 3,915,000 1.9
30,000 Sprint Corp. ...................... 1,112,100 1,046,250 0.5
50,000 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)*................... 2,311,905 2,793,750 1.4
------------- ------------- ----------
23,674,275 21,476,430 10.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL US COMMON STOCKS 164,203,298 169,101,476 81.8
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
COUNTRY FOREIGN STOCKS & WARRANTS+++
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
ARGENTINA 20,000 +Banco de Galicia y Buenos Aires
S.A. (ADR)* (3)................... 694,513 535,000 0.3
275,000 Telecom Argentina S.A.
(ADR)* (16)....................... 1,324,293 1,427,355 0.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ARGENTINA 2,018,806 1,962,355 1.0
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 80,000 News Corp., Ltd. (ADR)* (11)....... 4,341,480 3,860,000 1.9
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AUSTRALIA 4,341,480 3,860,000 1.9
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 13
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS+++ COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
CANADA 25,000 Hudson Bay Co. (Ordinary) (15)..... $ 751,800 $ 488,423 0.2%
100,000 International Semi-Tech
Microelectronics, Inc.
(Receipts)** (1).................. 656,627 361,795 0.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 1,408,427 850,218 0.4
- ----------------------------------------------------------------------------------------------------------------------------
CHILE 27,000 +Banco O'Higgins (ADR)* (3)......... 398,218 479,250 0.2
28,400 ++Distribuidora Chilectra
Metropolitana S.A. (ADR)* (18).... 794,176 1,198,054 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHILE 1,192,394 1,677,304 0.8
- ----------------------------------------------------------------------------------------------------------------------------
DENMARK 40,000 +Tele Danmark A/S (ADR)* (17)....... 941,040 985,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN DENMARK 941,040 985,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
FRANCE 1,608 +Compagnie Generale des Eaux (19)... 600,783 647,293 0.3
15,600 Compagnie UAP (10)................. 423,764 403,675 0.2
49,000 +Societe National Elf Aquitaine
(ADR)* (13)....................... 1,745,183 1,629,250 0.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 2,769,730 2,680,218 1.3
- ----------------------------------------------------------------------------------------------------------------------------
HONG KONG 512,911 Dairy Farm International Holdings
Ltd. (Ordinary) (15).............. 885,802 710,072 0.3
87,606 HSBC Holdings PLC (3).............. 682,290 957,783 0.5
250,000 Hutchison Whampoa, Ltd. (12)....... 795,094 1,026,976 0.5
700,000 Johnson Electric Holdings
Ltd. (7).......................... 1,320,382 1,639,281 0.8
125,000 Wharf Holding Ltd. (14)............ 526,841 460,926 0.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 4,210,409 4,795,038 2.3
- ----------------------------------------------------------------------------------------------------------------------------
ITALY 30,000 Istituto Mobiliare Italiano
S.p.A (3)......................... 661,889 600,000 0.3
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ITALY 661,889 600,000 0.3
- ----------------------------------------------------------------------------------------------------------------------------
JAPAN 15,000 +Makita Electric Work Co.,
Ltd. (16)......................... 304,849 305,936 0.1
50,000 Mitsubishi Electric Corp. (8)...... 308,898 339,929 0.2
30,000 Sekisui Chemical Co., Ltd. (5)..... 306,244 350,076 0.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN JAPAN 919,991 995,941 0.5
- ----------------------------------------------------------------------------------------------------------------------------
PORTUGAL 75,000 Banco Comercial Portugues
(ADR)* (3)........................ 1,016,030 909,375 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN PORTUGAL 1,016,030 909,375 0.4
- ----------------------------------------------------------------------------------------------------------------------------
SINGAPORE 30,000 Fraser & Neave Ltd. (4)............ 337,148 330,817 0.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SINGAPORE 337,148 330,817 0.2
- ----------------------------------------------------------------------------------------------------------------------------
SPAIN 25,000 Repsol S.A. (ADR)* (13)............ 639,292 720,000 0.3
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SPAIN 639,292 720,000 0.3
- ----------------------------------------------------------------------------------------------------------------------------
SWEDEN 15,000 L.M. Ericsson Telephone Co. (6).... 765,000 742,500 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWEDEN 765,000 742,500 0.4
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 10,000 British Petroleum PLC
(ADR)* (13)....................... 738,725 717,500 0.3
25,000 Hanson PLC (Sponsored)
(ADR)* (12)....................... 553,344 459,375 0.2
50,000 Reuters Holdings PLC (ADR)* (9).... 1,384,250 1,950,000 0.9
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE UNITED
KINGDOM 2,676,319 3,126,875 1.4
- ----------------------------------------------------------------------------------------------------------------------------
VENEZUELA 195,000 ++Siderurgica Venezolana SIVENSA,
S.A.I.C.A.-S.A.C.A. (ADR)*
(Warrants) (a)(2)................. 487,750 5,850 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN VENEZUELA 487,750 5,850 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 24,385,705 24,241,491 11.7
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 14
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT SHORT-TERM SECURITIES COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER*** $7,016,000 General Electric Capital Corp.,
4.30% due 7/01/1994................ $ 7,015,162 $ 7,015,162 3.3%
6,000,000 USAA Capital Corp., 4.27% due
7/08/1994.......................... 5,994,307 5,994,307 2.9
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 13,009,469 13,009,469 6.2
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS................... $ 201,598,472 206,352,436 99.7
=============
OTHER ASSETS LESS LIABILITIES....... 634,085 0.3
------------- ----------
NET ASSETS.......................... $ 206,986,521 100.0%
============= ==========
- ---------------------------------------------------------------------------------------------------------------------------
(a) Warrants entitle the Portfolio to purchase a predetermined number of shares of Common Stock. The purchase
price and number of shares are subject to adjustment under certain conditions until the expiration date.
* American Depositary Receipt (ADR).
** Receipts evidence payment by the Portfolio of 40% of the purchase price of Class A Shares of International
Semi-Tech Microelectronics, Inc. The Portfolio is obligated to pay the remaining 60%, approximately $985,000,
over the next two years.
*** Commercial Paper is traded on a discount basis; the interest rates shown are the discount rates paid at the
time of purchase by the Portfolio.
+ Non-income producing security.
++ Restricted securities. The value of the Fund's investment in restricted securities was approximately
$1,204,000, representing 0.6% of net assets.
+++ Corresponding industry groups for foreign stocks and warrants:
</TABLE>
(1) Appliances
(2) Auto-Parts
(3) Banking
(4) Beverages
(5) Chemicals
(6) Communications Equipment
(7) Electrical Equipment
(8) Electronics
(9) Financial Services
(10) Insurance
(11) Media/Publishing
(12) Multi-Industry
(13) Oil-Integrated
(14) Real Estate
(15) Retail
(16) Tools
(17) Utilities-Communications
(18) Utilities-Electric
(19) Utilities-Water
See Notes to Financial Statements.
13
<PAGE> 15
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD US STOCKS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
AEROSPACE 15,600 United Technologies Corp. ............ $ 803,052 $ 1,002,300 0.5%
- ----------------------------------------------------------------------------------------------------------------------------
ALUMINUM 14,200 Aluminum Co. of America............... 980,820 1,038,375 0.5
- ----------------------------------------------------------------------------------------------------------------------------
BANKING 26,300 Morgan (J.P.) & Co. .................. 1,704,850 1,627,313 0.8
- ----------------------------------------------------------------------------------------------------------------------------
BUILDING RELATED 29,500 Stanley Works Co. .................... 1,199,848 1,187,375 0.6
- ----------------------------------------------------------------------------------------------------------------------------
BUILDING SERVICES 40,000 Kelly Services, Inc. (Class A)........ 1,102,500 1,080,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS 22,750 Eastman Chemical Co. ................. 968,294 1,086,313 0.5
29,000 Nalco Chemical Co. ................... 882,114 924,375 0.4
------------ ------------ ----------
1,850,408 2,010,688 0.9
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER TECHNOLOGY 12,100 Hewlett-Packard Co. .................. 664,392 912,038 0.4
- ----------------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 62,000 +California Energy Co., Inc. .......... 1,094,204 1,023,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
FOOD 61,171 Archer-Daniels-Midland Co. ........... 1,400,250 1,422,226 0.7
- ----------------------------------------------------------------------------------------------------------------------------
HOSPITAL SUPPLIES 39,000 Abbott Laboratories................... 1,106,235 1,131,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
MACHINERY 32,600 Ingersoll-Rand Co. ................... 1,041,130 1,145,075 0.5
40,000 Keystone International, Inc. ......... 1,011,146 780,000 0.4
43,000 Morrison Knudsen Corp. ............... 1,052,963 924,500 0.4
------------ ------------ ----------
3,105,239 2,849,575 1.3
- ----------------------------------------------------------------------------------------------------------------------------
OFFICE RELATED 28,500 Pitney Bowes, Inc. ................... 1,060,009 1,090,125 0.5
- ----------------------------------------------------------------------------------------------------------------------------
OIL SERVICES 53,000 Dresser Industries, Inc. ............. 1,115,155 1,086,500 0.5
19,000 Schlumberger Ltd. .................... 1,166,038 1,123,375 0.5
------------ ------------ ----------
2,281,193 2,209,875 1.0
- ----------------------------------------------------------------------------------------------------------------------------
PETROLEUM 56,500 Phillips Petroleum Co. ............... 1,618,630 1,765,625 0.8
- ----------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 21,100 Bristol-Myers Squibb Co. ............. 1,250,109 1,131,488 0.5
52,000 Merck & Co., Inc. .................... 1,783,815 1,547,000 0.7
------------ ------------ ----------
3,033,924 2,678,488 1.2
- ----------------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHIC 27,000 Eastman Kodak Co. .................... 1,054,840 1,299,375 0.6
- ----------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 22,000 Gannett Co., Inc. .................... 1,033,141 1,089,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR 38,000 +Teradyne Inc. ........................ 615,480 1,007,000 0.5
PRODUCTION EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------------------
SMALLER CAPITAL 75,000 Wheelabrator Technologies Inc. ....... 1,510,940 1,396,875 0.7
- ----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 34,000 American Telephone & Telegraph Co. ... 1,675,885 1,848,750 0.9
23,000 Bell Atlantic Corp. .................. 1,243,205 1,288,000 0.6
41,000 Comsat Corp. ......................... 882,860 953,250 0.4
------------ ------------ ----------
3,801,950 4,090,000 1.9
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 31,021,905 31,910,253 14.9
- ----------------------------------------------------------------------------------------------------------------------------
COUNTRY FOREIGN STOCKS & WARRANTS++
- ----------------------------------------------------------------------------------------------------------------------------
ARGENTINA 43,350 +Banco de Galicia y Buenos Aires S.A.
(ADR)* (3)........................... 968,475 1,159,612 0.5
44,000 +Banco Frances del Rio de la Plata S.A.
(ADR)* (4)........................... 1,333,073 984,500 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ARGENTINA 2,301,548 2,144,112 1.0
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 16
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 275,000 C.S.R. Ltd. (Ordinary) (28)........... $ 800,378 $ 963,996 0.5%
120,000 National Australia Bank Ltd. (3)...... 812,521 962,243 0.5
258,500 Pacific Dunlop, Ltd. (28)............. 862,539 811,765 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AUSTRALIA 2,475,438 2,738,004 1.4
- ----------------------------------------------------------------------------------------------------------------------------
BRAZIL 133,500 Aracruz Celulose S.A. (ADR)* (16)..... 958,752 1,368,375 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN BRAZIL 958,752 1,368,375 0.6
- ----------------------------------------------------------------------------------------------------------------------------
CANADA 59,000 Canadian Pacific Ltd. (27)............ 955,145 870,250 0.4
27,000 Imperial Oil (29)..................... 990,623 791,245 0.4
38,000 Northern Telecommunications
Ltd. (37)............................ 1,073,547 1,049,750 0.5
80,000 Thomson Corp. (25).................... 987,083 882,779 0.4
60,000 Westcoast Energy, Inc. (28)........... 988,867 885,000 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 4,995,265 4,479,024 2.1
- ----------------------------------------------------------------------------------------------------------------------------
CHILE 85,000 +Banco O'Higgins (3).................. 1,349,627 1,508,750 0.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHILE 1,349,627 1,508,750 0.7
- ----------------------------------------------------------------------------------------------------------------------------
FRANCE 8,300 Alcatel Alsthom (8)................... 994,741 899,593 0.4
9,500 Compagnie de Saint Gobain (18)........ 900,246 1,108,055 0.5
2,400 +Compagnie Generale des Eaux (44)...... 1,045,190 966,109 0.5
17,033 +Schneider S.A. (12)................... 1,055,353 1,098,299 0.5
4,833 +Schneider S.A. (Warrants) (a)(12)..... 40,087 43,430 0.0
17,000 TOTAL S.A. (31)....................... 728,152 977,700 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 4,763,769 5,093,186 2.4
- ----------------------------------------------------------------------------------------------------------------------------
GERMANY 4,300 +Mannesmann AG (22).................... 776,273 1,092,716 0.5
4,400 Preussag S.A. (27).................... 1,073,571 1,237,137 0.6
3,700 RWE AG (Rheinisch
Westfalisches) (42).................. 939,800 963,517 0.5
2,500 Siemens AG (13)....................... 1,024,176 1,015,851 0.5
6,800 Thyssen AG (23)....................... 829,859 1,228,859 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN GERMANY 4,643,679 5,538,080 2.7
- ----------------------------------------------------------------------------------------------------------------------------
HONG KONG 156,000 China Light & Power Co., Ltd. (42).... 540,623 797,257 0.4
130,000 Sun Hung Kai Properties, Ltd. (34).... 929,188 748,480 0.3
140,000 Swire Pacific, Ltd. (Class A) (27).... 590,507 1,005,305 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 2,060,318 2,551,042 1.2
- ----------------------------------------------------------------------------------------------------------------------------
ITALY 300,000 Danieli & Co. (22).................... 1,104,673 1,119,792 0.5
250,000 Italcementi S.p.A. (9)................ 861,665 1,067,599 0.5
250,000 +Italcementi S.p.A. (RIghts) (c)(9).... 0 2,214 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ITALY 1,966,338 2,189,605 1.0
- ----------------------------------------------------------------------------------------------------------------------------
JAPAN 119,000 Asahi Glass Co., Ltd. (6)............. 1,310,044 1,473,161 0.7
39,600 Bandai Co., Ltd. (39)................. 1,167,114 1,912,694 0.9
81,000 Canon, Inc. (13)...................... 1,024,758 1,421,918 0.7
77,000 Dai Nippon Printing Co., Ltd. (33).... 1,140,324 1,523,592 0.7
83,000 Daiwa House Industries, Ltd. (19)..... 1,144,611 1,297,007 0.6
160,000 Hitachi Cable, Ltd. (8)............... 1,075,162 1,518,011 0.7
25,000 Ito-Yokado Co., Ltd. (35)............. 1,063,360 1,382,547 0.6
103,000 Kamigumi Co. (40)..................... 1,234,927 1,222,831 0.6
59,400 Kandenko Co., Ltd. (5)................ 1,132,730 1,320,000 0.6
52,000 Kansai Electric Power Co. (43)........ 1,469,652 1,398,275 0.7
180,000 Komatsu Ltd. (22)..................... 1,348,147 1,753,425 0.8
125,000 Maeda Corp. (5)....................... 1,155,958 1,407,915 0.7
200,000 Makino Milling Machine Co. (26)....... 1,276,986 1,720,954 0.8
69,000 Makita Electric Works, Ltd. (13)...... 1,116,229 1,407,306 0.7
170,000 Mitsubishi Electric Corp. (12)........ 1,080,460 1,155,758 0.5
180,000 Mitsubishi Heavy Industries,
Ltd. (8)............................. 1,018,102 1,441,096 0.7
</TABLE>
15
<PAGE> 17
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
JAPAN (CONCLUDED) 21,000 Nippon Ltd. (11)...................... $ 1,675,319 $ 1,521,461 0.7%
196,000 Nippon Fire and Marine Insurance Co.,
Ltd. (21)............................ 1,325,645 1,477,707 0.7
191,000 Nippon Oil Co., Ltd. (31)............. 1,272,486 1,484,586 0.7
149,000 Okumura Corp. (5)..................... 1,124,458 1,371,314 0.6
125,000 Sekisui Chemical Co. Ltd. (10)........ 1,262,212 1,458,650 0.7
85,000 Sharp Corp. (13)...................... 1,199,172 1,543,886 0.7
53,000 Shikoku Electric Power Co. (42)....... 1,342,519 1,355,251 0.6
155,000 Sumitomo Corp. (40)................... 1,293,251 1,619,990 0.8
85,000 Tokio Marine and Fire Insurance Co.,
Ltd. (21)............................ 1,101,376 1,095,383 0.5
37,000 Tokyo Electric Power Co., Inc. (42)... 1,078,823 1,201,421 0.6
84,000 Tokyo Style Co. (1)................... 1,354,941 1,670,624 0.8
200,000 Toray Industries, Ltd. (38)........... 1,413,536 1,509,893 0.7
68,000 Toto Ltd. (20)........................ 1,251,023 1,193,709 0.6
50,000 Toyo Seikan Kaisha Corp. (24)......... 1,470,783 1,623,541 0.8
78,000 Toyota Motor Corp. (2)................ 1,331,527 1,749,163 0.8
59,000 Yamazaki Baking Ltd. (15)............. 1,054,228 1,251,243 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN JAPAN 39,309,863 46,484,312 21.9
- ----------------------------------------------------------------------------------------------------------------------------
MEXICO 141,750 Cementos Mexicanos, S.A. de C.V.
(Series B) (9)....................... 466,351 938,728 0.4
526,666 Cifra, S.A. de C.V. (35).............. 858,313 1,227,334 0.6
77,000 Consorcio G Grupo Dina, S.A. de
C.V. (41)............................ 1,394,246 808,500 0.4
40,000 Empresas ICA Sociedad
Controladora, S.A. de C.V. (39)...... 881,022 960,000 0.4
21,250 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)* (37)................. 893,696 1,187,344 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MEXICO 4,493,628 5,121,906 2.4
- ----------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 11,400 Royal Dutch Petroleum Co., N.V.
(ADR)* (31).......................... 1,012,998 1,192,725 0.6
13,000 Ver Ner Utigevers (33)................ 725,489 1,260,323 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE NETHERLANDS 1,738,487 2,453,048 1.2
- ----------------------------------------------------------------------------------------------------------------------------
NORWAY 60,937 Hafslund Nycomed, Inc. (Class
B) (32).............................. 1,231,758 1,024,144 0.5
22,500 Kvaerner, Inc. (Class B) (8).......... 742,138 912,101 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN NORWAY 1,973,896 1,936,245 0.9
- ----------------------------------------------------------------------------------------------------------------------------
PORTUGAL 73,800 Banco Comercial Portuges (ADR)* (3)... 958,590 894,825 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN PORTUGAL 958,590 894,825 0.4
- ----------------------------------------------------------------------------------------------------------------------------
SINGAPORE 97,000 Jurong Shipyard Ltd. (5).............. 578,773 859,534 0.4
810,000 Neptune Orient Lines Ltd. (36)........ 829,336 1,260,059 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SINGAPORE 1,408,109 2,119,593 1.0
- ----------------------------------------------------------------------------------------------------------------------------
SPAIN 36,000 Repsol S.A. (ADR)* (31)............... 935,136 1,030,500 0.5
29,000 Telefonica Nacional de Espana S.A.
(ADR)* (37).......................... 992,515 1,167,250 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SPAIN 1,927,651 2,197,750 1.0
- ----------------------------------------------------------------------------------------------------------------------------
SWEDEN 60,000 SKF AB 'B' Free (26).................. 744,828 1,055,251 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWEDEN 744,828 1,055,251 0.5
- ----------------------------------------------------------------------------------------------------------------------------
SWITZERLAND 1,350 BBC Brown Boveri & Cie (26)........... 826,395 1,184,529 0.6
1,800 Holderbank Financiere Glarus AG (9)... 761,471 1,183,856 0.6
230 Roche Holdings, Ltd. (32)............. 519,178 1,098,430 0.5
1,800 Sulzer Gebrueder AG (22).............. 837,656 1,190,583 0.6
800 +Sulzer Gebrueder AG
(Warrants) (a)(22)................... -- 5,979 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWITZERLAND 2,944,700 4,663,377 2.3
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 18
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 129,000 Allied Lyons PLC (15)................. $ 1,211,757 $ 1,097,104 0.5%
247,000 British Gas PLC (28).................. 1,195,894 1,021,735 0.5
15,000 British Petroleum PLC (ADR)* (31)..... 804,800 1,076,250 0.5
180,000 British Telecommunications PLC (37)... 1,153,121 1,021,025 0.5
180,000 General Electric PLC (13)............. 806,276 783,481 0.4
114,000 GKN PLC (7)........................... 765,352 977,452 0.5
44,000 Grand Metropolitan PLC (ADR)* (14).... 1,197,852 1,105,500 0.5
225,000 Hanson PLC (27)....................... 876,603 835,226 0.4
420,000 Hillsdown Holdings PLC (27)........... 1,051,087 995,094 0.5
88,000 Imperial Chemical Industries
PLC (30)............................. 1,137,770 1,051,309 0.5
370,000 Lucas Industries PLC (7).............. 827,415 987,994 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE
UNITED KINGDOM 11,027,927 10,952,170 5.3
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 92,042,413 105,488,655 50.0
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT** FOREIGN BONDS++
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA Queensland Treasury Corp. (17):
A$ 2,390,000 8.00% due 7/14/1999............... 1,744,262 1,655,877 0.8
2,500,000 8.00% due 5/14/2003............... 1,870,250 1,629,117 0.8
------------ ------------ ----------
3,614,512 3,284,994 1.6
- ----------------------------------------------------------------------------------------------------------------------------
CANADA C$ 9,900,000 Government of Canada,
7.25% due 6/01/2003 (17)............. 7,852,475 6,360,069 3.0
- ----------------------------------------------------------------------------------------------------------------------------
GERMANY DM 5,000,000 Bundes, 6.375% due 5/20/1998 (17)..... 3,094,616 3,137,190 1.5
- ----------------------------------------------------------------------------------------------------------------------------
ITALY Buoni Poliennali del Tesoro (17):
Lit 3,000,000,000 8.50% due 1/01/1997............... 1,873,676 1,827,729 0.9
3,000,000,000 10.00% due 8/01/2003.............. 1,919,737 1,813,874 0.9
------------ ------------ ----------
3,793,413 3,641,603 1.8
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM UK Treasury Gilt (17):
Pound 1,200,000 7.25% due 3/30/1998............... 1,911,258 1,807,053 0.9
350,000 9.75% due 8/27/2002............... 697,240 566,392 0.3
1,000,000 8.00% due 6/10/2003............... 1,668,701 1,491,407 0.7
------------ ------------ ----------
4,277,199 3,864,852 1.9
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 22,632,215 20,288,708 9.8
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
US GOVERNMENT & AGENCY OBLIGATIONS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL $ 83,302 Government National Mortgage
MORTGAGE ASSOCIATION Association, 9.00%
due 8/15/2016 (b)................. 82,495 86,114 0.0
- ---------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT US Treasury Notes:
OBLIGATIONS 14,900,000 5.50% due 4/15/2000................ 14,953,070 13,854,676 6.5
1,000,000 8.00% due 5/15/2001................ 984,375 1,045,156 0.5
2,000,000 7.875% due 8/15/2001............... 2,042,656 2,075,626 1.0
1,950,000 7.50% due 11/15/2001............... 1,979,055 1,981,383 0.9
1,200,000 7.50% due 5/15/2002................ 1,291,344 1,218,563 0.6
1,250,000 6.375% due 8/15/2002............... 1,248,633 1,182,226 0.6
4,600,000 6.25% due 2/15/2003................ 4,724,250 4,293,093 2.0
9,800,000 5.75% due 8/15/2003................ 9,854,281 8,777,125 4.1
1,500,000 5.875% due 2/15/2004............... 1,373,203 1,348,359 0.6
4,000,000 7.25% due 5/15/2004................ 4,073,125 3,978,752 1.9
------------- ------------- ----------
42,523,992 39,754,959 18.7
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS 42,606,487 39,841,073 18.7
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 19
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE (NOTE PERCENT OF
AMOUNT** SHORT-TERM SECURITIES COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL $ 9,523,000 General Electric Capital Corp.,
PAPER*** 4.30% due 7/01/1994................ $ 9,523,000 $ 9,523,000 4.5%
3,000,000 PHH Corp., 4.27% due 7/29/1994..... 2,990,036 2,990,036 1.4
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 12,513,036 12,513,036 5.9
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS.................. $ 200,816,056 210,041,725 99.3
=============
OTHER ASSETS LESS LIABILITIES...... 1,524,888 0.7
------------- ----------
NET ASSETS......................... $ 211,566,613 100.0%
============= ==========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* American Depositary Receipt (ADR).
** Denominated in US dollars unless otherwise indicated.
*** Commercial Paper is traded on a discount basis; the interest rates shown are
the discount rates paid at the time of purchase by the Portfolio.
(a) Warrants entitle the Portfolio to purchase a predetermined number of shares
of common stock. The purchase price and number of shares are subject to
adjustment under certain conditions until the expiration date.
(b) Mortgage-backed bonds; original face amounts and related costs are reduced
by principal payment pass-throughs.
(c) The rights may be exercised until July 18, 1994.
+ Non-income producing security.
++ Corresponding industry groups for foreign stocks and bonds:
(1) Apparel
(2) Automobile
(3) Banking
(4) Banking-International
(5) Building & Construction
(6) Building Materials
(7) Business Services
(8) Capital Goods
(9) Cement
(10) Chemicals
(11) Consumer-Electronics
(12) Electrical Equipment
(13) Electronics
(14) Food & Beverage
(15) Food
(16) Forest Products
(17) Government (Bonds)
(18) Glass
(19) Housing
(20) Industrials
(21) Insurance
(22) Machinery
(23) Machinery and Equipment
(24) Metal Fabricating
(25) Miscellaneous
(26) Miscellaneous-Capital Goods
(27) Multi-Industry
(28) Natural Gas
(29) Oil & Gas Producers
(30) Oil-Integrated
(31) Petroleum
(32) Pharmaceutical
(33) Printing & Publishing
(34) Real Estate
(35) Retail Stores
(36) Shipping
(37) Telecommunications
(38) Textiles
(39) Toys
(40) Trading
(41) Trucking
(42) Utilities
(43) Utilities-Electric
(44) Utilities-Water
See Notes to Financial Statements.
18
<PAGE> 20
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD STOCKS, WARRANTS & BONDS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
APPAREL 60,000 Deckers Outdoor Corp. ............... $ 1,291,625 $ 720,000 0.7%
- ---------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 175,000 Consorcio G Grupo Dina, S.A. de C.V.
(ADR)+.............................. 3,449,925 1,837,500 1.9
5,000 Daimler-Benz AG...................... 241,342 226,250 0.2
5,000 Daimler-Benz AG (Rights)
(ADR)+ (a).......................... 0 2,188 0.0
50,000 Ek Chor China Motorcycle Co.,
Ltd. ............................... 1,110,762 1,050,000 1.1
------------- ------------ ----------
4,802,029 3,115,938 3.2
- ---------------------------------------------------------------------------------------------------------------------------
BANKING 10,000 State Street Boston Corp. ........... 356,250 386,250 0.4
- ---------------------------------------------------------------------------------------------------------------------------
BEVERAGES 40,000 Coca-Cola Co. ....................... 1,722,600 1,625,000 1.7
5,000 Coca-Cola FEMSA S.A. (ADR)+.......... 147,016 125,625 0.1
5,000 Panamerican Beverages, Inc.
(Class A)........................... 138,775 120,625 0.1
15,000 PepsiCo., Inc. ...................... 542,775 459,375 0.5
------------- ------------ ----------
2,551,166 2,330,625 2.4
- ---------------------------------------------------------------------------------------------------------------------------
BROADCAST-MEDIA 40,000 Grupo Radio Centro, S.A. de C.V.
(ADR)+.............................. 929,350 980,000 1.0
20,000 Grupo Televisa, S.A. de C.V. (ADR)+
(Series L).......................... 1,219,825 1,015,000 1.0
20,000 Infinity Broadcasting Corp. (Class
A).................................. 591,042 480,000 0.5
60,000 Turner Broadcasting System, Inc.
(Class B)........................... 1,575,805 1,042,500 1.1
------------- ------------ ----------
4,316,022 3,517,500 3.6
- ---------------------------------------------------------------------------------------------------------------------------
BROADCASTING-CABLE 75,000 Tele-Communications Inc. (Class A)... 1,843,750 1,528,125 1.6
30,000 Time Warner Inc. .................... 1,331,718 1,053,750 1.1
------------- ------------ ----------
3,175,468 2,581,875 2.7
- ---------------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES 5,000 ++Interim Services, Inc. .............. 123,164 113,750 0.1
5,000 Olsten Corp. ........................ 142,225 160,000 0.2
------------- ------------ ----------
265,389 273,750 0.3
- ---------------------------------------------------------------------------------------------------------------------------
CHEMICAL PRODUCERS 5,000 Duracell International, Inc. ........ 183,822 195,000 0.2
20,000 Great Lakes Chemical Corp. .......... 1,523,285 1,082,500 1.1
------------- ------------ ----------
1,707,107 1,277,500 1.3
- ---------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS 15,000 ++Cabletron Systems, Inc. ............. 1,836,084 1,449,375 1.5
10,000 cisco Systems, Inc. ................. 253,750 231,250 0.2
20,000 ++Nextel Communications, Inc.
(Class A)........................... 905,000 600,000 0.6
------------- ------------ ----------
2,994,834 2,280,625 2.3
- ---------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS 70,000 CUC International, Inc. ............. 2,498,786 1,872,500 1.9
AND SERVICES
- ---------------------------------------------------------------------------------------------------------------------------
COSMETICS 5,000 Gillette Co. ........................ 314,100 325,625 0.3
5,000 International Flavors & Fragrances,
Inc. ............................... 178,500 195,625 0.2
------------- ------------ ----------
492,600 521,250 0.5
- ---------------------------------------------------------------------------------------------------------------------------
ELECTRONICS 10,000 Intel Corp. ......................... 635,000 585,000 0.6
- ---------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT 60,000 Electronic Arts, Inc. ............... 1,967,084 825,000 0.9
- ---------------------------------------------------------------------------------------------------------------------------
FINANCE 10,000 Countrywide Credit Industries,
Inc. ............................... 219,625 143,750 0.2
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 21
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD STOCKS, WARRANTS & BONDS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 20,000 MGIC Investment Corp. ............... $ 408,200 $ 530,000 0.5%
60,000 The Travelers Corp. ................. 2,565,483 1,935,000 2.0
------------- ------------ ----------
2,973,683 2,465,000 2.5
- ---------------------------------------------------------------------------------------------------------------------------
FOODS 5,000 Kellogg Co. ......................... 278,763 271,875 0.3
- ---------------------------------------------------------------------------------------------------------------------------
HEALTH SERVICES 20,000 Caremark International, Inc. ........ 316,200 332,500 0.3
10,000 Novacare, Inc. ...................... 153,130 160,000 0.2
50,000 ++Pediatric Services of America,
Inc. ............................... 400,000 362,500 0.4
------------- ------------ ----------
869,330 855,000 0.9
- ---------------------------------------------------------------------------------------------------------------------------
HEALTHCARE- 50,000 ++Circa Pharmaceuticals, Inc. ......... 674,535 462,500 0.5
PHARMACEUTICALS 20,000 Teva Pharmaceutical Industries Ltd.
(ADR)+.............................. 647,500 472,500 0.5
40,000 Watson Pharmaceuticals, Inc. ........ 1,171,800 710,000 0.7
------------- ------------ ----------
2,493,835 1,645,000 1.7
- ---------------------------------------------------------------------------------------------------------------------------
HOME FURNISHINGS 40,000 Shaw Industries, Inc. ............... 752,400 660,000 0.7
- ---------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 10,000 Procter & Gamble Co. ................ 584,600 533,750 0.6
- ---------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES 15,000 Cintas Corp. ........................ 406,155 480,000 0.5
- ---------------------------------------------------------------------------------------------------------------------------
INFORMATION 5,000 First Financial Management Corp. .... 273,245 277,500 0.3
PROCESSING
- ---------------------------------------------------------------------------------------------------------------------------
INSURANCE 10,000 American International Group,
Inc. ............................... 981,850 866,250 0.9
5,000 General Re Corp. .................... 646,288 545,000 0.6
300,000 Reliance Group Holdings, Inc. ....... 2,390,000 1,612,500 1.6
------------- ------------ ----------
4,018,138 3,023,750 3.1
- ---------------------------------------------------------------------------------------------------------------------------
LEISURE 20,000 PolyGram N.V. (ADR)+................. 683,100 797,500 0.8
- ---------------------------------------------------------------------------------------------------------------------------
MARKETING 5,000 Catalina Marketing Corp. ............ 205,275 210,000 0.2
- ---------------------------------------------------------------------------------------------------------------------------
MEDICAL TECHNOLOGY 40,000 Haemonetics Corp. ................... 1,091,169 725,000 0.7
- ---------------------------------------------------------------------------------------------------------------------------
OIL SERVICES 15,000 Schlumberger Ltd., Inc. ............. 905,220 886,875 0.9
- ---------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL 40,000 WMX Technologies, Inc. .............. 1,147,400 1,060,000 1.1
- ---------------------------------------------------------------------------------------------------------------------------
PUBLISHING 40,000 Scholastic Corp. .................... 1,805,000 1,480,000 1.5
- ---------------------------------------------------------------------------------------------------------------------------
RESTAURANTS 40,000 McDonald's Corp. .................... 1,163,700 1,155,000 1.2
- ---------------------------------------------------------------------------------------------------------------------------
RETAIL-SPECIALTY 5,000 Pep Boys-Manny, Moe & Jack........... 118,327 158,125 0.2
5,000 Staples Inc. ........................ 102,500 135,000 0.1
------------- ------------ ----------
220,827 293,125 0.3
- ---------------------------------------------------------------------------------------------------------------------------
RETAIL-STORES 100,000 Cifra, S.A. de C.V. ................. 229,860 233,039 0.2
- ---------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS 5,000 Texas Instruments, Inc. ............. 317,225 397,500 0.4
- ---------------------------------------------------------------------------------------------------------------------------
SOFTWARE-COMPUTER 10,000 Computer Associates International
Inc. ............................... 415,600 400,000 0.4
15,000 InfoSoft International, Inc. ........ 290,114 337,500 0.3
5,000 Oracle Systems, Inc. ................ 149,687 186,875 0.2
23,781 ++Pharmaceutical Resource, Inc.
(Conv. Pfd.)........................ 0 0 0.0
------------- ------------ ----------
855,401 924,375 0.9
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 22
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD STOCKS, WARRANTS & BONDS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 60,000 Bell Atlantic Corp. ................. $ 3,733,558 $ 3,360,000 3.4%
100,000 MCI Communications Corp. ............ 2,793,358 2,212,500 2.3
80,000 QUALCOMM Inc. ....................... 2,398,750 1,280,000 1.3
30,000 Vodafone Group PLC (ADR)+............ 2,484,440 2,272,500 2.3
------------- ------------ ----------
11,410,106 9,125,000 9.3
- ---------------------------------------------------------------------------------------------------------------------------
TOYS 20,000 Mattel, Inc. ........................ 447,120 507,500 0.5
- ---------------------------------------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC 40,000 ++AES China Generating Co. Ltd. ....... 643,500 450,000 0.5
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKS, WARRANTS & BONDS 61,048,037 48,888,352 50.1
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT SHORT-TERM SECURITIES
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER* $4,500,000 Ciesco L.P., 4.23% due 7/08/1994..... 4,495,770 4,495,770 4.6
5,000,000 CSW Credit Inc.,
4.27% due 7/22/1994................. 4,986,953 4,986,953 5.1
3,113,000 General Electric Capital Corp.,
4.30% due 7/01/1994................. 3,112,628 3,112,628 3.2
5,000,000 Matterhorn Capital Corp.,
4.25% due 7/01/1994................. 4,999,410 4,999,410 5.1
3,000,000 MetLife Funding Inc.,
4.27% due 7/01/1994................. 2,999,644 2,999,644 3.1
5,000,000 Miles Inc., 4.25% due 7/11/1994...... 4,993,507 4,993,507 5.1
5,000,000 PHH Corp., 4.27% due 7/29/1994....... 4,982,801 4,982,801 5.1
5,000,000 Preferred Receivable Funding Corp.,
4.26% due 7/21/1994................. 4,987,575 4,987,575 5.1
5,000,000 Sheffield Receivables Corp.,
4.26% due 7/25/1994................. 4,985,208 4,985,208 5.1
5,000,000 Siemens Corp.,
4.35% due 7/28/1994................. 4,983,083 4,983,083 5.1
2,000,000 USAA Capital Corp.,
4.27% due 7/08/1994................. 1,998,102 1,998,102 2.1
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 47,524,681 47,524,681 48.7
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS.................... $ 108,572,718 96,413,033 98.8
=============
OTHER ASSETS LESS LIABILITIES........ 1,191,101 1.2
------------ ----------
NET ASSETS........................... $ 97,604,134 100.0%
=========== ===========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commercial Paper is traded on a discount basis; the interest rates shown are
the discount rates paid at the time of purchase by the Portfolio.
+ American Depositary Receipt (ADR).
++ Non-income producing security.
(a) The rights may be exercised until July 5, 1994.
See Notes to Financial Statements.
21
<PAGE> 23
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
AIRLINES-2.9% BB+ Baa3 $ 750,000 Delta Air Lines, Inc., 9.30% due
1/02/2010........................ $ 740,775 $ 684,485
BB+ Baa1 1,000,000 United Air Lines, Inc., 9.21% due
1/21/2017........................ 1,016,820 849,670
BB B1 750,000 USAir, Inc., 10.375% due
3/01/2013........................ 750,000 660,000
------------ ------------
2,507,595 2,194,155
- -----------------------------------------------------------------------------------------------------------------------------
BROADCASTING & BB- Ba3 600,000 Heritage Media Services Inc.,
PUBLISHING-0.8% 11.00% due 6/15/2002............. 637,500 618,000
- -----------------------------------------------------------------------------------------------------------------------------
BUILDING B+ B3 750,000 Pacific Lumber Co., 10.50% due
MATERIALS-1.0% 3/01/2003........................ 752,813 729,375
- -----------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS-3.3% B B1 1,350,000 American Standard Inc., 11.37% due
6/01/2005........................ 836,483 823,500
B Ba3 1,000,000 Inter-City Products Corp., 9.75%
due 3/01/2000.................... 963,750 890,000
B B2 1,000,000 USG Corp., 8.75% due 3/01/2017..... 908,750 845,000
------------ ------------
2,708,983 2,558,500
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS-1.9% B+ B3 1,500,000 Sequa Corp., 9.375% due
12/15/2003....................... 1,545,938 1,470,000
- -----------------------------------------------------------------------------------------------------------------------------
CELLULAR B- B3 750,000 Dial Page, Inc., 12.25% due
TELEPHONES-1.0% 2/15/2000........................ 751,500 765,000
- -----------------------------------------------------------------------------------------------------------------------------
CHEMICALS-2.7% B B2 1,000,000 Agricultural Minerals & Chemical
Co., 10.75% due 9/30/2003........ 1,016,250 1,010,000
B Ba3 1,717,000 G-I Holdings Inc., 11.15% due
10/01/1998....................... 1,082,580 1,051,663
------------ ------------
2,098,830 2,061,663
- -----------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES-5.8% B Caa 500,000 Collins & Aikman Group, Inc., 7.50%
due 1/31/2005.................... 433,294 495,000
B+ B1 1,000,000 Foamex Capital Corp., 11.25% due
10/01/2002....................... 989,062 1,025,000
B+ B3 950,000 Jordan Industries Inc., 10.375% due
8/01/2003........................ 950,000 923,875
NR NR 1,000,000 MacAndrew & Forbes Group, Inc.,
13.00% due 3/01/1999............. 995,000 1,002,500
BB- Ba3 1,000,000 Sherritt Gordon, Ltd., 9.75% due
4/01/2003........................ 988,750 987,500
------------ ------------
4,356,106 4,433,875
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS-4.3% NR Caa 1,000,000 Formica Corp., 13.928% due
9/15/2005........................ 1,003,750 976,250
Liggett Group., Inc.:
NR NR 1,000,000 11.50% due 2/01/1999............... 975,000 700,000
NR NR 19,000 ++16.50% due 2/01/1999............... 19,000 14,250
B- Caa 1,000,000 Polymer Group Inc., 12.25% due
7/15/2002........................ 1,000,000 1,000,000
B B3 1,550,000 Revlon Worldwide Corp., 14.84%* due
3/15/1998........................ 993,048 635,500
------------ ------------
3,990,798 3,326,000
- -----------------------------------------------------------------------------------------------------------------------------
CONTAINERS-5.3% B B2 1,000,000 Anchor Glass Container Co., 9.875%
due 12/15/2008................... 981,875 925,000
B- Caa 2,750,000 Ivex Holdings Inc., 11.33%* due
3/15/2005........................ 1,434,576 1,388,750
B+ B3 500,000 Ivex Packaging Corp., 12.50% due
12/15/2002....................... 496,495 525,000
B- B3 1,500,000 Silgan Holdings, Inc., 13.25%* due
6/15/1996........................ 1,204,369 1,200,000
------------ ------------
4,117,315 4,038,750
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 24
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY-11.9% B+ B1 $ 2,000,000 Clark Oil & Refining Corp., 11.00%*
due 2/15/2000.................... $ 1,096,331 $ 1,100,000
NR Caa 428,000 Empire Gas Corp., 12.00% due
3/31/2002........................ 266,430 428,000
B B2 1,000,000 Ferrellgas Inc., 11.625% due
12/15/2003....................... 1,035,000 1,100,000
BB B1 850,000 Gulf Canada Resources, Ltd., 9.00%
due 8/15/1999.................... 789,281 833,000
BB B1 1,000,000 Maxus Energy Corp., 9.375% due
11/01/2003....................... 1,006,250 917,500
C Caa 753,000 National Propane Corp., 13.125% due
3/01/1999........................ 585,244 754,882
BB- Ba3 1,000,000 Noble Drilling Corp., 9.25% due
10/01/2003....................... 1,000,000 955,000
B+ Ba3 750,000 Rowan Companies, Inc., 11.875% due
12/01/2001....................... 772,500 795,000
BB- Ba3 750,000 Seagull Energy Corp., 8.625% due
8/01/2005........................ 751,875 690,000
CCC+ Caa 750,000 Tesoro Petroleum Corp., 12.75% due
3/15/2001........................ 564,375 750,000
B+ B1 1,125,000 Triton Energy Corp., 9.68%* due
11/01/1997....................... 818,486 798,750
------------ ------------
8,685,772 9,122,132
- -----------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT-5.4% B B3 1,375,000 AMC Entertainment, Inc., 12.625%
due 8/01/2002.................... 1,396,102 1,512,500
B+ B1 750,000 Cinemark USA, Inc., 12.00% due
6/01/2002........................ 750,000 817,500
B B3 1,700,000 Marvel Holdings Inc., 11.761%* due
4/15/1998........................ 1,107,388 1,045,500
B B3 750,000 Plitt Theatres Inc., 10.875% due
6/15/2004........................ 750,000 757,500
------------ ------------
4,003,490 4,133,000
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL CCC+ B2 750,000 Pioneer Finance Corp., 13.50% due
SERVICES-3.2% 12/01/1998....................... 792,187 772,500
BB+ NR 1,000,000 Reliance Financial Services Corp.,
9.273% due 11/01/2000............ 812,630 980,000
BB- B1 750,000 Reliance Group Holdings Inc., 9.75%
due 11/15/2003................... 750,000 678,750
------------ ------------
2,354,817 2,431,250
- -----------------------------------------------------------------------------------------------------------------------------
FOOD & B+ B1 1,000,000 Canandaigua Wine Inc., 8.75% due
BEVERAGE-12.3% 12/15/2003....................... 890,000 880,000
B B2 1,000,000 Coca Cola Bottling Co., Inc., 9.00%
due 11/15/2003................... 1,000,000 910,000
NR NR 500,000 +Cumberland Farms, 10.50% due
10/01/2003 489,375 447,500
BB- B1 1,000,000 Del Monte Corp., 10.00% due
5/01/2003........................ 976,250 910,000
B- B2 1,000,000 Envirodyne Industries, 10.25% due
12/01/2001....................... 1,018,750 880,000
B- B2 2,100,000 Farm Fresh, Inc., 7.50% due
3/01/2010........................ 1,093,875 1,329,922
B+ B2 1,000,000 Grand Union Co., 12.25% due
7/15/2002........................ 1,000,000 967,500
BB- Ba3 750,000 P&C Food Markets, Inc., 11.50% due
10/15/2001....................... 780,469 795,000
B B2 500,000 Penn Traffic Co., 9.625% due
4/15/2005........................ 495,635 470,000
B- B2 1,000,000 Pueblo Xtra International Inc.,
9.50% due 8/01/2003.............. 1,000,000 900,000
B B2 1,000,000 Specialty Foods Corp., 10.25% due
8/15/2001........................ 1,000,312 905,000
------------ ------------
9,744,666 9,394,922
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 25
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
HEALTH SERVICES-2.2% B+ B1 $ 750,000 Continental Medical Systems Inc.,
10.875% due 8/15/2002............ $ 753,750 $ 720,000
B+ B1 1,000,000 MEDIQ/PRN Life Support Services,
Inc., 11.125% due 7/01/1999...... 1,002,500 1,000,000
------------ ------------
1,756,250 1,720,000
- -----------------------------------------------------------------------------------------------------------------------------
HIGH TECHNOLOGY-1.2% B- B3 1,000,000 ComputerVision Corp., 11.375% due
8/15/1999........................ 995,000 890,000
- -----------------------------------------------------------------------------------------------------------------------------
HOTELS & CASINOS-8.5% BB B1 1,000,000 Bally's Park Place Funding Corp.,
9.25% due 3/15/2004.............. 920,000 890,000
B+ B2 1,000,000 GB Property Funding Corp., 10.875%
due 1/15/2004.................... 845,000 800,000
Gold River Hotel & Casino Corp.:
NR NR 1,000 0% due 8/31/1997................... 24,040 17,128
NR NR 635,000 11.375% due 8/31/1999.............. 790,072 622,300
BB- B1 1,000,000 Host Marriott Hospitality, Inc.,
10.375% due 6/15/2011............ 1,027,500 1,000,000
BB- B1 1,000,000 JQ Hammons Hotel, 8.875% due
2/15/2004........................ 887,500 890,000
BB- Ba3 750,000 Showboat Inc., 9.25% due
5/01/2008........................ 755,625 671,250
Trump Castle Funding, Inc.:
NR Ca 500 11.75% due 11/15/2003.............. 478 365
NR Ca 210 7.00% due 11/15/2005............... 190 136
B B3 2,000,000 Trump Plaza Funding, Inc., 10.875%
due 6/15/2001.................... 1,997,528 1,640,000
------------ ------------
7,247,933 6,531,179
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL BB- B2 650,000 ADT Operations, 9.25% due
SERVICES-5.3% 8/01/2003........................ 650,000 606,125
B- B3 1,500,000 Bell & Howell Co., 10.75% due
10/01/2002....................... 1,522,500 1,545,000
C Caa 755,000 Southeastern Public Service Co.,
11.875% due 2/01/1998............ 563,165 739,900
Thermadyne Industries, Inc.:
NR Caa 518,000 10.25% due 5/01/2002............... 518,928 502,460
NR Caa 718,000 10.75% due 11/01/2003.............. 718,846 696,460
------------ ------------
3,973,439 4,089,945
- -----------------------------------------------------------------------------------------------------------------------------
METAL & MINING-1.4% B- B3 1,750,000 Maxxam Group, Inc., 12.25%* due
8/01/2003........................ 1,019,992 1,076,250
- -----------------------------------------------------------------------------------------------------------------------------
PAPER-4.3% B B2 1,000,000 Fort Howard Corp., 9.00% due
2/01/2006........................ 997,500 850,000
B B1 750,000 Riverwood International, Corp.,
11.25% due 6/15/2002............. 750,000 776,250
B+ B1 750,000 Stone Consolidated Corp., 10.25%
due 12/15/2000................... 753,750 727,500
B B1 1,000,000 Stone Container Corp., 9.875% due
2/01/2001........................ 908,400 927,500
------------ ------------
3,409,650 3,281,250
- -----------------------------------------------------------------------------------------------------------------------------
RESTAURANTS-2.1% B- B2 1,000,000 Flagstar Corp., 11.375%
due 9/15/2003.................... 935,000 910,000
B- B2 750,000 Foodmaker, Inc., 9.75%
due 6/01/2002.................... 738,750 671,250
------------ ------------
1,673,750 1,581,250
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL-1.3% B+ B2 1,000,000 Bradlees, Inc., 11.00%
due 8/01/2002.................... 1,023,750 1,000,000
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE> 26
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
TEXTILES-1.2% B+ B3 $ 1,000,000 Westpoint Stevens Industries,
9.375% due 12/15/2005............ $ 1,000,000 $ 905,000
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-1.3% B+ Ba3 1,000,000 Viking Star Shipping Co., 9.625%
due 7/15/2003.................... 1,030,000 970,000
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION BB- B1 1,000,000 International Shipholding Corp.,
SERVICES-2.6% 9.00% due 7/01/2003.............. 999,375 940,000
NR NR 2,000,000 ++Transtar Holdings, 11.00% due
12/15/2003....................... 1,136,042 1,085,000
------------ ------------
2,135,417 2,025,000
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES-3.7% B Ba3 1,000,000 Beaver Valley Funding, 9.00% due
6/01/2017........................ 943,750 820,000
BB+ Ba1 1,000,000 CTC Mansfield Funding, 11.125% due
9/30/2016........................ 1,076,250 967,860
B- B2 1,000,000 Midland Cogeneration Venture L.P.,
13.25% due 7/23/2006............. 1,108,750 1,059,650
------------ ------------
3,128,750 2,847,510
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS-96.9% 76,650,054 74,194,006
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES
HELD COMMON STOCKS & WARRANTS
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
FOOD & BEVERAGE-0.2% 18,304 Doskocil Companies, Inc............ 1,059,879 162,448
- -----------------------------------------------------------------------------------------------------------------------------
HIGH TECHNOLOGY-0.1% 30,351 +Anacomp, Inc. (Warrants) (b)(d).... 40,000 41,733
- -----------------------------------------------------------------------------------------------------------------------------
HOTELS & 9,135 +Buckhead Corp. of America.......... 22,837 22,837
CASINOS-0.1% 10,000 +Goldriver Hotel & Casino Corp.
(Class B) (c).................... 65,657 35,625
2,000 Trump Taj Mahal Holding Corp.
(Class A)........................ 1,000 43,000
------------ ------------
89,494 101,462
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-0.0% 1,036 Thermadyne Industries, Inc.
(Warrants) (b)(d)................ 15,022 12,173
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS & WARRANTS-0.4% 1,204,395 317,816
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE> 27
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
INDUSTRY HELD ISSUE COST (NOTE 1a)
- -----------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS
<S> <C> <C> <C> <C> <C> <C>
BROADCASTING & 8,361 K-III Communications Corp. (a)..... $ 856,429 $ 817,249
PUBLISHING-1.1%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS-1.1% 856,429 817,249
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-98.4%............ $ 78,710,878 75,329,071
===========
OTHER ASSETS LESS
LIABILITIES-1.6%.................. 1,230,922
------------
NET ASSETS-100.0%.................. $ 76,559,993
===========
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Represents the effective yield at the time of purchase.
(a) Represents a pay-in-kind security which may pay interest/dividends in
additional face amount/shares.
(b) Warrants entitle the Portfolio to purchase a predetermined number of shares
of common stock/face amount of bonds. The purchase price and number of
shares/face amount are subject to adjustments under certain conditions until
the expiration date.
(c) Each share contains a right which entitles the Portfolio to purchase a
predetermined number of shares of preferred stock. The purchase price and
number of shares are subject to adjustment.
(d) Non-income producing security.
+ Restricted securities as to resale.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
ISSUE ACQUISITION DATE COST (NOTE 1a)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Anacomp, Inc. (Warrants)............................................. 10/23/90 $ 40,000 $ 41,733
Buckhead Corp. of America............................................ 12/29/92 22,837 22,837
Cumberland Farms, 10.50% due 10/01/2003.............................. 2/18/94 to 3/28/94 489,375 447,500
Goldriver Hotel & Casino Corp. (Class B)............................. 8/31/92 65,657 35,625
- ---------------------------------------------------------------------------------------------------------------------
TOTAL $617,869 $ 547,695
========= ----------
- ---------------------------------------------------------------------------------------------------------------------
++ Other restricted securities. 1,099,250
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RESTRICTED SECURITIES-2.15% $1,646,945
==========
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
26
<PAGE> 28
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Intermediate Government Bond Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL FARM CREDIT $ 5,000,000 Federal Farm Credit Bank, 8.65% due 10/01/1999.... $ 5,113,650 $ 5,325,000
BANK-2.3%
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL FARM CREDIT BANK 5,113,650 5,325,000
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME Federal Home Loan Mortgage Corporation:
LOAN MORTGAGE 6,000,000 6.55% due 1/04/2000............................... 6,102,840 5,795,640
CORPORATION-4.6% 5,000,000 7.90% due 9/19/2001............................... 5,000,000 5,148,450
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION 11,102,840 10,944,090
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL Federal National Mortgage Association:
MORTGAGE 25,000,000 4.62% due 1/26/1996............................... 24,975,000 24,975,000
ASSOCIATION-27.5% 7,000,000 8.35% due 11/10/1999.............................. 7,650,000 7,297,500
12,000,000 8.90% due 6/12/2000............................... 13,980,480 13,035,000
9,000,000 9.20% due 9/11/2000............................... 9,392,500 9,905,580
10,000,000 7.65% due 4/29/2004............................... 9,924,400 9,703,100
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION 65,922,380 64,916,180
- ---------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED 966,344 Federal National Mortgage Association,
SECURITIES-0.4% 9.00% due 1/01/2002 (a).......................... 932,522 1,006,805
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES 932,522 1,006,805
- ---------------------------------------------------------------------------------------------------------------------------
PRIVATE EXPORT Private Export Funding Corporation:
FUNDING 7,000,000 8.35% due 1/31/2001............................... 7,083,590 7,404,670
CORPORATION-7.7% 10,000,000 8.75% due 6/30/2003............................... 10,410,682 10,721,600
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL PRIVATE EXPORT FUNDING CORPORATION 17,494,272 18,126,270
- ---------------------------------------------------------------------------------------------------------------------------
US TREASURY US Treasury Notes:
NOTES-45.0% 13,000,000 8.875% due 2/15/1999.............................. 14,712,344 13,997,360
6,000,000 6.00% due 10/15/1999.............................. 6,206,719 5,742,180
20,000,000 8.75% due 8/15/2000............................... 23,590,625 21,640,600
21,000,000 8.50% due 11/15/2000.............................. 22,600,412 22,479,870
6,000,000 7.25% due 5/15/2004............................... 5,972,040 5,966,220
18,000,000 12.00% due 5/15/2005.............................. 25,619,062 24,041,160
10,000,000 10.75% due 8/15/2005.............................. 13,385,937 12,464,100
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US TREASURY NOTES 112,087,139 106,331,490
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS-87.5% 212,652,803 206,649,835
- ---------------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- ---------------------------------------------------------------------------------------------------------------------------
REPURCHASE 8,000,000 Morgan Stanley Group Inc., purchased on 6/27/1994
AGREEMENT-11.3%* to yield 4.15% to 7/05/1994...................... 8,000,000 8,000,000
8,665,000 Swiss Bank Corp., purchased on 6/30/1994 to yield
4.25% to 7/01/1994 8,665,000 8,665,000
10,000,000 UBS Finance Corp., purchased on 6/28/1994 to yield
4.15% to 7/05/1994............................... 10,000,000 10,000,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES-11.3% 26,665,000 26,665,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-98.8%........................... $ 239,317,803 233,314,835
=============
OTHER ASSETS LESS LIABILITIES-1.2%................ 2,848,676
-------------
NET ASSETS-100.0%................................. $ 236,163,511
=============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) US Government Agency Mortgage-Backed Obligations are subject to principal
paydowns as a result of prepayments or refinancings of the underlying
mortgage instrument. As a result, the average life may be substantially less
than the original maturity.
* Repurchase Agreements are fully collateralized by US Government Obligations.
See Notes to Financial Statements.
27
<PAGE> 29
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE (NOTE
RATING RATING FACE AMOUNT ISSUE COST 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- -----------------------------------------------------------------------------------------------------------------------------
FEDERAL AGENCIES-2.5% AAA Aaa $ 1,000,000 Federal Home Loan Mortgage Corp.,
7.90% due 9/19/2001............. $ 1,000,000 $ 1,029,690
Federal National Mortgage
Association:
AAA Aaa 1,000,000 7.65% due 4/29/2004.............. 987,810 971,044
AAA Aaa 1,000,000 7.55% due 6/10/2004.............. 998,594 971,250
------------- -------------
2,986,404 2,971,984
- -----------------------------------------------------------------------------------------------------------------------------
US TREASURY NOTES US Treasury Notes & Bonds:
& BONDS-12.7% NR Aaa 3,000,000 8.25% due 7/15/1998.............. 3,379,219 3,150,000
NR Aaa 3,500,000 5.50% due 4/15/2000.............. 3,310,781 3,253,915
NR Aaa 2,000,000 8.50% due 11/15/2000............. 2,150,000 2,139,374
NR Aaa 2,000,000 7.25% due 5/15/2004.............. 2,032,500 1,988,740
NR Aaa 4,000,000 8.00% due 11/15/2021............. 4,068,125 4,128,760
NR Aaa 750,000 7.125% due 2/15/2023............. 717,773 701,719
------------- -------------
15,658,398 15,362,508
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS-15.2% 18,644,802 18,334,492
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INDUSTRY CORPORATE BONDS & NOTES
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
BANKING-8.5% A A1 3,000,000 Comerica Bank, 4.61% due
5/26/1997....................... 2,997,461 2,986,440
A- A3 2,000,000 First Interstate Bancorp, 11.00%
due 3/05/1998................... 2,402,040 2,233,640
A- A3 2,000,000 Huntington National Bank, 7.625%
due 1/15/2003................... 2,133,320 1,949,380
A+ A2 1,000,000 Norwest Corp., 6.625% due
3/15/2003....................... 1,003,060 922,280
A A2 2,000,000 World Savings & Loan Association,
9.90% due 7/01/2000............. 2,072,740 2,178,040
------------- -------------
10,608,621 10,269,780
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES- A A3 2,000,000 General Motors Acceptance Corp.,
CAPTIVE-1.7% 4.76% due 6/07/1996............. 1,997,123 1,995,500
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES- A+ A1 3,000,000 American General Finance Corp.,
CONSUMER-9.5% 7.45% due 7/01/2002.............. 2,993,400 2,913,780
Associates Corp. of North
America:
AA- A1 2,500,000 8.80% due 8/01/1998.............. 2,817,275 2,617,425
AA- A1 1,000,000 6.75% due 10/15/1999............. 1,040,610 963,610
CIT Group Holdings, Inc.:
A+ A1 2,000,000 4.80% due 8/31/1995.............. 2,000,000 2,000,000
A+ A1 2,000,000 4.85% due 9/15/1995.............. 2,002,500 2,001,260
A+ A2 1,000,000 Transamerica Financial Corp.,
6.80% due 3/15/1999.............. 999,730 971,330
------------- -------------
11,853,515 11,467,405
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE> 30
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES- Dean Witter, Discover & Co.:
OTHER-8.3% A A3 $ 1,000,000 6.50% due 11/01/2005............. $ 988,450 $ 878,530
A A3 1,000,000 6.75% due 10/15/2013............. 966,720 820,810
General Electric Capital Corp.:
A A3 2,000,000 4.51% due 5/09/1996.............. 2,000,000 2,000,000
AAA Aaa 1,000,000 8.70% due 2/15/2003.............. 1,211,050 1,057,750
BBB+ A3 3,000,000 PaineWebber Group, Inc., 9.25%
due 12/15/2001.................. 3,507,900 3,136,530
A+ A3 2,000,000 Torchmark Corp., 9.625% due
5/01/1998....................... 1,952,770 2,131,560
------------- -------------
10,626,890 10,025,180
- -----------------------------------------------------------------------------------------------------------------------------
FOREIGN+-5.5% A+ A2 1,000,000 CRA Finance Ltd., 6.50% due
12/01/2003(1)................... 1,004,510 896,600
AAA Aaa 2,000,000 Japan Finance Corp. for Municipal
Enterprises, 8.70% due
7/30/2001(2).................... 2,237,380 2,118,460
Province of Quebec (Canada)(3):
A+ A1 1,000,000 7.50% due 7/15/2002.............. 1,076,020 959,830
A+ A1 1,500,000 13.00% due 10/01/2013............ 1,959,060 1,844,115
AA A1 1,000,000 Republic of Italy, 6.875% due
9/27/2023(3).................... 972,070 815,450
------------- -------------
7,249,040 6,634,455
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- Bass America, Inc.:
CONSUMER-11.4% A+ A1 1,000,000 6.75% due 8/01/1999.............. 1,009,090 967,050
A+ A1 2,500,000 8.125% due 3/31/2002............. 2,502,640 2,538,450
Grand Metropolitan Investment
Corp.:
A+ A2 1,000,000 6.50% due 9/15/1999.............. 1,000,000 953,540
A+ A2 1,000,000 8.625% due 8/15/2001............. 1,047,750 1,041,500
A+ A2 1,500,000 9.00% due 8/15/2011.............. 1,544,205 1,590,915
A- A2 3,000,000 J.C. Penney Co., Inc., 7.375% due
6/15/2004....................... 2,984,400 2,908,590
AA Aa1 3,500,000 Wal-Mart Stores Inc., 8.625% due
4/01/2001....................... 3,488,100 3,694,740
------------- -------------
13,576,185 13,694,785
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- A+ A1 2,000,000 Atlantic Richfield Co., 10.375%
ENERGY-5.9% due 7/15/1995................... 2,107,950 2,085,500
AA- A1 2,000,000 BP America Inc., 7.875% due
5/15/2002....................... 2,110,760 2,015,740
A- A3 1,000,000 Burlington Resources, Inc.,
9.875% due 6/15/2010............ 1,280,800 1,131,950
Texaco Capital Inc.:
A+ A1 1,000,000 6.875% due 7/15/1999............. 998,060 975,560
A+ A1 1,000,000 8.00% due 8/01/2032.............. 969,730 956,840
------------- -------------
7,467,300 7,165,590
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- AA- Aa2 2,000,000 Archer-Daniels-Midland Co., 6.25%
OTHER-8.4% due 5/15/2003................... 1,989,000 1,811,240
A+ A1 3,000,000 Capital Cities/ABC, Inc., 8.875%
due 12/15/2000.................. 3,211,080 3,231,030
A A2 2,000,000 Communications Satellite Corp.,
8.125% due 4/01/2004............ 2,045,900 2,011,760
A- A3 1,000,000 International Paper Co., 9.70%
due 3/15/2000................... 1,196,680 1,095,690
AA Aa2 1,000,000 Kaiser Foundation Hospital, 9.00%
due 11/01/2001.................. 1,146,180 1,064,550
AAA Aaa 1,000,000 Stanford University, 6.875% due
2/01/2024....................... 992,400 871,448
------------- -------------
10,581,240 10,085,718
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE> 31
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S VALUE (NOTE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST 1a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS & NOTES (CONCLUDED)
- -----------------------------------------------------------------------------------------------------------------------------
SUPRANATIONAL-5.3% AAA Aaa $ 1,500,000 Asian Development Bank, 10.75%
due 6/01/1997................... $ 1,580,525 $ 1,650,840
AAA Aaa 1,000,000 European Investment Bank, 8.875%
due 3/01/2001................... 1,190,160 1,075,980
AAA Aaa 1,000,000 Inter-American Development Bank
Co., 8.50% due 3/15/2011........ 1,012,470 1,053,250
AAA Aaa 2,000,000 International Bank for
Reconstruction & Development,
12.375% due 10/15/2002.......... 2,432,280 2,576,560
------------- -------------
6,215,435 6,356,630
- -----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- AA+ Aa1 4,000,000 Tele-Communications Inc.,
3.5% 9.80% due 2/01/2012............. 4,201,240 4,201,240
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORT Southwest Airlines, Inc.:
SERVICES-2.6% A- Baa1 2,000,000 9.40% due 7/01/2001.............. 2,407,120 2,154,980
A- Baa1 1,000,000 7.875% due 9/01/2007............. 998,750 959,410
------------- -------------
3,405,870 3,114,390
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- AA- Aa3 2,000,000 Pacific Bell, Inc., 8.70% due
COMMUNICATIONS-1.7% 6/15/2001....................... 2,099,600 2,111,760
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- A+ A1 1,000,000 Baltimore Gas & Electric Co.,
ELECTRIC-3.3% 4.025% due 4/15/1999............ 996,500 999,880
A A1 3,000,000 Pacific Gas & Electric Co.,
7.875% due 3/01/2002............ 2,993,760 3,024,060
------------- -------------
3,990,260 4,023,940
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- AA- A1 2,500,000 Consolidated Natural Gas Co.,
GAS-2.2% 8.75% due 6/01/1999.............. 2,575,440 2,625,525
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS &
NOTES-77.8%...................... 96,447,759 93,771,898
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER-1.6%* 2,000,000 American Express Credit Corp.,
4.15% due 7/05/1994............. 1,998,847 1,998,847
- -----------------------------------------------------------------------------------------------------------------------------
REPURCHASE 5,291,000 Swiss Bank Corp., purchased on
AGREEMENT-4.4%** 6/30/1994 to yield 4.25% to
7/01/1994....................... 5,291,000 5,291,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM
INVESTMENTS-6.0% 7,289,847 7,289,847
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.0%.......... $122,382,408 119,396,237
=============
OTHER ASSETS LESS
LIABILITIES-1.0%................. 1,240,036
-------------
NET ASSETS - 100.0%.............. $120,636,273
=============
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commercial Paper is traded on a discount basis; the interest rate shown is
the discount rate paid at the time of purchase by the Portfolio.
** Repurchase Agreements are fully collateralized by US Government
Obligations.
+ Corresponding industry groups for foreign bonds:
(1) Industrial Mining.
(2) Financial Institution.
(3) Government Entity.
See Notes to Financial Statements.
30
<PAGE> 32
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY VALUE
FACE AMOUNT ISSUE RATE* DATE (NOTE 1a)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER- $ 1,333,000 APRECO, Inc. ............................... 4.42 % 9/09/94 $ 1,320,775
64.5% 4,000,000 Abbey National North America Corp. ......... 4.05 9/28/94 3,953,500
5,135,000 BBV Finance (Delaware), Inc. ............... 4.45 9/12/94 5,085,918
3,000,000 BNP US Finance Corp. ....................... 4.05 9/29/94 2,964,737
4,000,000 Bank One Diversified Services Corp. ........ 4.33 8/04/94 3,983,161
10,000,000 Bankers Trust New York Corp. ............... 4.50 9/01/94 9,918,625
15,000,000 Bear Stearns Cos., Inc. (The)............... 4.42 7/18/94 14,966,850
10,000,000 Bear Stearns Cos., Inc. (The)............... 4.45 8/22/94 9,934,192
12,000,000 Beta Finance Inc. .......................... 4.45 9/15/94 11,880,650
5,000,000 Bowater PLC................................. 4.275 7/12/94 4,992,875
10,964,000 CSW Credit, Inc. ........................... 4.31 7/05/94 10,957,437
5,000,000 CSW Credit, Inc. ........................... 4.28 7/14/94 4,991,678
4,601,000 CSW Credit, Inc. ........................... 4.32 7/27/94 4,586,093
2,065,000 CXC Inc. ................................... 4.30 7/13/94 2,061,793
10,000,000 Corporate Receivable Corp. ................. 4.42 9/12/94 9,904,416
10,654,000 Dun & Bradstreet Corporation (The) ......... 4.32 8/16/94 10,591,825
10,000,000 Ford Motor Credit Company................... 4.38 7/05/94 9,993,917
12,000,000 Ford Motor Credit Company................... 4.25 7/06/94 11,991,500
15,000,000 Goldman Sachs Group L.P. ................... 4.50 9/06/94 14,868,250
16,949,000 Grand Metropolitan Investment Corp. ........ 4.45 8/22/94 16,837,462
5,000,000 Grand Metropolitan Investment Corp. ........ 4.66 11/07/94 4,913,333
483,000 Grand Metropolitan Investment Corp. ........ 4.66 11/28/94 473,276
2,500,000 Hanson Finance (UK) PLC..................... 3.90 7/08/94 2,497,667
5,000,000 Hanson Finance (UK) PLC..................... 4.48 8/16/94 4,970,821
1,120,000 Hertz Funding Corporation................... 4.45 9/06/94 1,110,163
20,000,000 International Lease Finance Corp. .......... 3.90 7/11/94 19,974,028
10,000,000 Kredietbank N.A. Finance Corp. ............. 4.17 7/29/94 9,965,361
5,026,000 NationsBank Corp. .......................... 4.48 8/23/94 4,992,301
20,000,000 New Center Asset Trust...................... 4.27 7/18/94 19,957,300
5,000,000 New Center Asset Trust...................... 4.34 7/22/94 4,986,739
1,700,000 New Center Asset Trust...................... 4.45 9/06/94 1,685,068
16,266,000 Nomura Holding America, Inc. ............... 4.45 7/01/94 16,263,989
17,000,000 PHH Corporation............................. 4.30 7/05/94 16,989,847
10,000,000 Paribas Finance, Inc. ...................... 4.25 7/05/94 9,994,097
8,277,000 Preferred Receivables Funding Corp. ........ 4.00 7/05/94 8,272,206
10,000,000 Preferred Receivables Funding Corp. ........ 4.27 7/19/94 9,977,464
12,945,000 Premium Funding, Inc., Series A............. 4.48 8/22/94 12,859,811
5,000,000 Premium Funding, Inc., Series A............. 4.57 10/06/94 4,936,028
2,558,000 Shell Oil Company .......................... 4.25 7/06/94 2,556,188
10,000,000 Southwestern Bell Capital Corp. ............ 4.33 8/16/94 9,941,642
10,000,000 Xerox Credit Corporation.................... 4.35 8/12/94 9,948,041
11,946,000 Xerox Credit Corporation.................... 3.92 7/14/94 11,926,256
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (COST-$355,022,386) 354,977,280
- -----------------------------------------------------------------------------------------------------------------------------
MASTER NOTES+-5.1% 8,000,000 Goldman Sachs Group, L.P.................... 4.38 9/01/94 8,000,000
20,000,000 Kingdom of Sweden........................... 4.31 7/15/94 20,000,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL MASTER NOTES (COST-$28,000,000) 28,000,000
- -----------------------------------------------------------------------------------------------------------------------------
MEDIUM-TERM 14,000,000 General Electric Capital Corp............... 3.50 8/25/94 13,974,710
NOTES-2.5%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES (COST-$13,999,143) 13,974,710
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE> 33
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY VALUE
FACE AMOUNT ISSUE RATE* DATE (NOTE 1a)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT, $ 295,000 Federal Home Loan Bank...................... 3.78% 1/26/95 $ 286,654
AGENCY & 416,000 Federal Home Loan Mortgage.................. 4.32 8/12/94 413,863
INSTRUMENTALITY 55,000 Federal National Mortgage Association....... 3.26 7/15/94 54,906
OBLIGATIONS- 110,000 Federal National Mortgage Association....... 3.41 9/15/94 108,953
DISCOUNT-1.3% 170,000 Federal National Mortgage Association....... 3.34 9/22/94 168,235
400,000 Federal National Mortgage Association....... 3.53 10/14/94 394,606
145,000 Federal National Mortgage Association....... 3.38 10/17/94 142,989
190,000 Federal National Mortgage Association....... 3.42 10/18/94 187,341
3,000,000 US Treasury Bills........................... 3.355 1/12/95 2,922,743
2,300,000 US Treasury Bills........................... 3.44 1/12/95 2,240,770
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT, AGENCY & INSTRUMENTALITY
OBLIGATIONS-DISCOUNT (COST-$6,964,645) 6,921,060
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT, 3,000,000 Federal Home Loan Bank+..................... 4.68 6/21/95 3,000,000
AGENCY & 3,000,000 Federal Home Loan Bank+..................... 4.56 8/09/95 2,972,700
INSTRUMENTALITY 6,000,000 Federal Home Loan Bank+..................... 4.68 12/28/95 6,000,000
OBLIGATIONS- 6,000,000 Federal Home Loan Bank+..................... 4.71 6/17/96 6,000,000
NON-DISCOUNT-26.5% 2,000,000 Federal Home Loan Bank+..................... 4.71 6/21/96 2,000,000
3,000,000 Federal Home Loan Mortgage+................. 4.53 8/09/95 2,972,700
29,000,000 Federal Home Loan Mortgage+................. 4.61 9/01/95 28,993,533
5,000,000 Federal Home Loan Mortgage+................. 4.62 9/01/95 4,999,445
5,000,000 Federal National Mortgage Association+...... 4.19 7/08/94 4,999,890
5,000,000 Federal National Mortgage Association+...... 4.29 6/01/95 4,999,550
8,000,000 Federal National Mortgage Association+...... 4.58 5/13/96 8,000,000
5,000,000 Federal National Mortgage Association+...... 4.58 5/24/96 5,000,000
8,000,000 Federal National Mortgage Association+...... 4.70 5/19/97 8,000,000
8,000,000 Federal National Mortgage Association+...... 4.75 5/14/98 8,000,000
2,000,000 Student Loan Marketing Association+......... 4.61 12/30/94 2,002,268
2,100,000 Student Loan Marketing Association+......... 4.91 3/20/95 2,107,468
2,000,000 Student Loan Marketing Association+......... 4.83 4/24/95 2,007,858
15,000,000 Student Loan Marketing Association+......... 4.46 5/14/96 15,021,510
5,000,000 Student Loan Marketing Association+......... 4.67 1/14/97 5,000,000
5,000,000 US Treasury Notes........................... 3.875 3/31/95 4,948,435
5,000,000 US Treasury Notes........................... 3.875 4/30/95 4,939,060
1,250,000 US Treasury Notes........................... 4.125 6/30/95 1,234,375
7,500,000 US Treasury Notes........................... 3.875 8/31/95 7,357,028
1,000,000 US Treasury Notes........................... 4.25 12/31/95 978,125
1,500,000 US Treasury Notes........................... 4.00 1/31/96 1,457,343
3,000,000 US Treasury Notes........................... 5.875 5/31/96 2,989,686
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT, AGENCY & INSTRUMENTALITY
OBLIGATIONS-NON-DISCOUNT (COST-$146,396,643) 145,980,974
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST-$550,382,817)-99.9%................... 549,854,024
OTHER ASSETS LESS LIABILITIES-0.1%.......... 723,038
-------------
NET ASSETS-100.0%........................... $ 550,577,062
=============
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Bankers' Acceptances, Commercial Paper and certain US Government Agency
Obligations are traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Portfolio. Other securities
bear interest at the rates shown, payable at fixed dates or upon maturity.
Interest rates on variable rate securities are adjusted periodically based on
approximate indexes. The interest rates shown are the rates in effect at June
30, 1994.
+ Variable Rate Notes.
See Notes to Financial Statements.
32
<PAGE> 34
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
APPLIANCES 862,100 Singer Co.................... $ 22,750,533 $ 30,173,500 2.7%
915,000 Sunbeam-Oster Inc. .......... 18,137,866 18,300,000 1.6
-------------- -------------- ----------
40,888,399 48,473,500 4.3
- -------------------------------------------------------------------------------------------------------------------------
AUTO & TRUCK 200,000 Consorcio G Grupo Dina, S.A.
de C.V. (ADR)(a)............ 3,388,824 2,100,000 0.2
- -------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 80,000 Ford Motor Co. .............. 4,931,125 4,720,000 0.4
- -------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE EQUIPMENT 270,000 Magna International, Inc. ... 12,409,551 10,800,000 1.0
- -------------------------------------------------------------------------------------------------------------------------
BANKING 300,000 Bank of New York, Inc. ...... 8,042,140 8,662,500 0.8
40,000 +Bank of New York, Inc.
(Warrants)(b)............... 301,250 385,000 0.0
250,000 BankAmerica Corp. ........... 11,273,027 11,437,500 1.0
175,000 Espirito Santo Financial
Holdings Co. (ADR)(a)....... 4,931,909 4,725,000 0.4
175,000 Grupo Financiero Serfin, S.A.
de C.V. (ADR)(a)............ 4,326,060 3,084,375 0.3
-------------- -------------- ----------
28,874,386 28,294,375 2.5
- -------------------------------------------------------------------------------------------------------------------------
BEVERAGES 40,000 Panamerican Beverages,
Inc. ....................... 1,284,541 965,000 0.1
- -------------------------------------------------------------------------------------------------------------------------
CHEMICALS 137,000 du Pont (E.I.) de Nemours &
Co. ........................ 7,814,730 7,997,375 0.7
120,000 +IMC Fertilizer Group,
Inc. ....................... 4,969,601 4,155,000 0.4
200,000 Rohm and Haas Co. ........... 11,208,392 12,450,000 1.1
-------------- -------------- ----------
23,992,723 24,602,375 2.2
- -------------------------------------------------------------------------------------------------------------------------
COMMUNICATION 450,000 ADC Telecommunications
EQUIPMENT Inc. ....................... 13,852,584 18,112,500 1.6
450,000 DSC Communications Corp...... 11,471,098 8,775,000 0.8
180,000 Motorola, Inc. .............. 9,117,834 8,010,000 0.7
170,000 Tellabs, Inc. ............... 3,757,072 5,227,500 0.5
-------------- -------------- ----------
38,198,588 40,125,000 3.6
- -------------------------------------------------------------------------------------------------------------------------
COMPUTER EQUIPMENT 300,000 +Solectron Corp. ............. 7,422,076 7,612,500 0.7
- -------------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 735,000 Computer Sciences Corp. ..... 20,491,418 30,594,375 2.7
- -------------------------------------------------------------------------------------------------------------------------
CONSUMER-MISCELLANEOUS 150,000 Duracell International,
Inc. ....................... 6,161,382 5,850,000 0.5
- -------------------------------------------------------------------------------------------------------------------------
CONSUMER-SERVICES 270,000 Block (H&R), Inc............. 12,177,356 10,597,500 1.0
- -------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 150,000 Grainger (W.W.) Inc. ........ 9,381,655 9,581,250 0.9
- -------------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 500,000 California Energy Co.,
Inc. ....................... 8,941,083 8,250,000 0.7
- -------------------------------------------------------------------------------------------------------------------------
ENGINEERING & 360,000 +Empresas ICA Sociedad
CONSTRUCTION Controladora, S.A. de C.V.
(ADR)(a).................... 7,280,026 8,640,000 0.8
550,000 Huntingdon International
Holdings PLC (ADR)(a)....... 12,358,643 3,162,500 0.3
-------------- -------------- ----------
19,638,669 11,802,500 1.1
- -------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 1,600,000 +Wheelabrator Technologies,
Inc. ....................... 19,656,504 29,800,000 2.7
- -------------------------------------------------------------------------------------------------------------------------
HEALTH & PERSONAL CARE 100,000 Johnson & Johnson Co. ....... 4,002,346 4,287,500 0.4
- -------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 600,000 Humana Inc. ................. 10,888,511 9,675,000 0.9
380,000 Physician Corp. of
America .................... 7,557,312 8,550,000 0.8
165,000 US Healthcare, Inc. ......... 6,862,365 6,105,000 0.6
50,000 Vivra Inc. .................. 907,763 1,200,000 0.1
-------------- -------------- ----------
26,215,951 25,530,000 2.4
- -------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 292,500 Procter & Gamble Co. ........ 16,667,002 15,612,188 1.4
- -------------------------------------------------------------------------------------------------------------------------
INSURANCE 175,000 ITT Corp. ................... 14,983,386 14,284,375 1.3
- -------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS-CAPITAL 403,000 Thermo Electron.............. 16,362,750 15,011,750 1.4
- -------------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY 280,000 Allied Signal Inc............ 9,055,984 9,695,000 0.9
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE> 35
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 425,000 Danka Business Systems PLC
(ADR)(a).................... $ 12,514,261 $ 16,946,875 1.5%
- -------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 165,000 Mobil Corp................... 12,808,332 13,468,125 1.2
75,000 Phillips Petroleum Co. ...... 2,126,235 2,343,750 0.2
100,000 Royal Dutch Petroleum Co.
N.V. (ADR)(a)............... 8,693,206 10,462,500 0.9
-------------- -------------- ----------
23,627,773 26,274,375 2.3
- -------------------------------------------------------------------------------------------------------------------------
PACKAGING 240,000 Crown Cork & Seal Co.,
Inc. ....................... 4,220,073 8,940,000 0.8
- -------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST 200,100 Scott Paper Co. ............. 8,771,243 10,455,225 0.9
PRODUCTS 140,000 Willamette Industries,
Inc. ....................... 5,503,593 5,985,000 0.5
-------------- -------------- ----------
14,274,836 16,440,225 1.4
- -------------------------------------------------------------------------------------------------------------------------
PRECISION INSTRUMENTS 75,000 Perkin-Elmer Corp. .......... 2,939,625 2,193,750 0.2
- -------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 150,000 Gannett Co., Inc. ........... 7,641,674 7,425,000 0.7
- -------------------------------------------------------------------------------------------------------------------------
RAILROADS 255,000 CSX Corp. ................... 22,067,263 19,252,500 1.7
435,000 +Southern Pacific Rail
Corp. ...................... 9,005,923 8,536,875 0.8
-------------- -------------- ----------
31,073,186 27,789,375 2.5
- -------------------------------------------------------------------------------------------------------------------------
RETAIL 120,000 Phillips-Van Heusen Corp. ... 3,190,345 3,015,000 0.3
- -------------------------------------------------------------------------------------------------------------------------
SHIPPING 75,000 Transportacion Maritima
Mexico, S.A. de C.V.
(ADR)(a).................... 729,483 525,000 0.1
- -------------------------------------------------------------------------------------------------------------------------
SOFTWARE 150,000 +Novell, Inc. ................ 2,744,386 2,493,750 0.2
- -------------------------------------------------------------------------------------------------------------------------
TIRE & RUBBER 150,200 Bandag, Inc. (Class A)....... 7,666,173 6,946,750 0.6
350,000 Cooper Tire and Rubber
Co. ........................ 5,303,112 8,093,750 0.7
-------------- -------------- ----------
12,969,285 15,040,500 1.3
- -------------------------------------------------------------------------------------------------------------------------
UTILITIES-COMMUNICATIONS 81,900 ALC Communication Corp. ..... 2,330,655 2,518,425 0.2
300,000 GTE Corp. ................... 9,653,208 9,450,000 0.9
750,840 LDDS Communications (Class
A).......................... 16,571,928 12,951,990 1.2
800,000 MCI Communications Co. ...... 22,595,337 17,700,000 1.6
285,000 +Southwestern Bell Corp. ..... 12,158,693 12,397,500 1.1
100,000 Sprint Corp. ................ 3,723,100 3,487,500 0.3
30,000 Telefonos de Mexico, S.A. de
C.V. (ADR)(a)............... 1,598,286 1,676,250 0.2
400,000 Telefonos de Mexico, S.A. de
C.V. (Class A).............. 703,804 1,118,584 0.1
4,600,000 Telefonos de Mexico, S.A. de
C.V. (Class L).............. 8,849,263 12,890,855 1.2
-------------- -------------- ----------
78,184,274 74,191,104 6.8
- -------------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 539,234,900 559,864,142 50.5
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
COUNTRY FOREIGN STOCKS & WARRANTS+++
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
ARGENTINA 60,000 Banco de Galicia y Buenos
Aires S.A. (ADR)(a)(3)...... 2,000,900 1,605,000 0.1
90,000 +Banco Frances del Rio de la
Plata S.A. (ADR)(a)(3)...... 3,038,205 2,013,750 0.2
800,000 Telecom Argentina S.A.
(Class B)(18)............... 3,837,940 4,152,305 0.4
-------------- -------------- ----------
8,877,045 7,771,055 0.7
- -------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 189,000 Australia and New Zealand
Banking Group Ltd.(3)....... 560,347 85,577 0.0
346,411 National Australia Bank
Ltd. (3).................... 2,170,270 2,777,764 0.3
240,000 News Corp., Ltd.
(ADR)(a)(12)................ 12,979,964 11,580,000 1.0
367,562 Pacific Dunlop, Ltd. (13).... 1,379,974 1,154,250 0.1
-------------- -------------- ----------
17,090,555 15,597,591 1.4
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE> 36
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS+++ COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
CANADA 75,000 Hudson Bay Co.
(Ordinary) (16)............. $ 2,293,862 $ 1,465,268 0.1%
400,000 International Semi-Tech
Microelectronics, Inc.
(Receipts)****(1)........... 2,584,007 1,447,178 0.1
-------------- -------------- ----------
4,877,869 2,912,446 0.2
- -------------------------------------------------------------------------------------------------------------------------
CHILE 87,600 +Banco O'Higgins (ADR)(a)(3).. 1,298,388 1,554,900 0.1
136,400 ++Distribuidora Chilectra
Metropolitana S.A.
(ADR)(a)(19)................ 3,929,378 5,754,034 0.5
-------------- -------------- ----------
5,227,766 7,308,934 0.6
- -------------------------------------------------------------------------------------------------------------------------
DENMARK 205,000 +Tele Danmark A/S
(ADR)(a)(18)................ 4,953,220 5,048,125 0.5
- -------------------------------------------------------------------------------------------------------------------------
FRANCE 5,358 +Compagnie Generale des
Eaux (20)................... 2,002,292 2,156,839 0.2
61,100 Compagnie UAP (11)........... 1,659,744 1,581,061 0.1
198,000 +Societe Nationale Elf
Aquitaine (ADR)(a)(14)...... 7,079,475 6,583,500 0.6
-------------- -------------- ----------
10,741,511 10,321,400 0.9
- -------------------------------------------------------------------------------------------------------------------------
HONG KONG 1,543,041 Dairy Farm International
Holdings Ltd. (16).......... 2,666,001 2,136,180 0.2
400,086 HSBC Holdings PLC (3)........ 2,421,746 4,374,080 0.4
1,100,000 Hutchison Whampoa,
Ltd. (13)................... 3,045,923 4,518,696 0.4
1,700,000 Johnson Electric Co. (7)..... 3,387,675 3,981,110 0.4
375,000 Wharf Holdings Ltd. (15)..... 1,580,524 1,382,779 0.1
-------------- -------------- ----------
13,101,869 16,392,845 1.5
- -------------------------------------------------------------------------------------------------------------------------
ITALY 125,000 Istituto Mobiliare Italiano
S.p.A. (3).................. 2,744,894 2,500,000 0.2
- -------------------------------------------------------------------------------------------------------------------------
JAPAN 50,000 +Makita Electric Works,
Ltd. (17)................... 1,016,164 1,019,787 0.1
150,000 Mitsubishi Heavy Industry,
Ltd. (8).................... 926,693 1,019,787 0.1
100,000 Sekisui Chemical Co.
Ltd. (5).................... 1,020,751 1,166,920 0.1
-------------- -------------- ----------
2,963,608 3,206,494 0.3
- -------------------------------------------------------------------------------------------------------------------------
MEXICO 795,000 ++Grupo Carso, S.A. de
C.V. (13)................... 6,762,196 14,210,625 1.3
- -------------------------------------------------------------------------------------------------------------------------
PORTUGAL 114,833 Banco Comercial
Portugues (3)............... 1,438,512 1,428,341 0.1
170,000 Banco Comercial Portugues
(ADR)(a)(3)................. 2,108,031 2,061,250 0.2
-------------- -------------- ----------
3,546,543 3,489,591 0.3
- -------------------------------------------------------------------------------------------------------------------------
SINGAPORE 100,000 Fraser & Neave Ltd. (4)...... 1,123,533 1,102,724 0.1
- -------------------------------------------------------------------------------------------------------------------------
SPAIN 80,000 Repsol S.A. (ADR)(a)(14)..... 2,164,334 2,304,000 0.2
- -------------------------------------------------------------------------------------------------------------------------
SWEDEN 45,000 L.M. Ericsson Telephone Co.
(ADR)(a)(6)................. 2,295,000 2,227,500 0.2
- -------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 30,000 British Petroleum Co. PLC
(ADR)(a)(14)................ 2,136,800 2,152,500 0.2
75,000 Hanson PLC Sponsored
(ADR)(a)(13)................ 1,659,618 1,378,125 0.1
150,000 Reuters Holdings PLC
(ADR)(a)(9)................. 3,814,272 5,850,000 0.5
225,000 Siebe PLC (7)................ 1,966,059 1,899,663 0.2
-------------- -------------- ----------
9,576,749 11,280,288 1.0
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE> 37
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS+++ COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
VENEZUELA 295,000 ++Siderurgica Venezolana
SIVENSA S.A.I.C.A.-S.A.C.A.
(ADR)(Warrants)(a)(b)(2).... $ 695,375 $ 8,850 0.0%
- -------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS &
WARRANTS 96,742,067 105,682,468 9.4
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT* FOREIGN BONDS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
AUSTRALIA A$ 18,200,000 Queensland Treasury Global
Notes, 8.00% due
7/14/1999 (10).............. 13,621,219 12,609,608 1.1
- -------------------------------------------------------------------------------------------------------------------------
CANADA C$ 19,500,000 Government of Canada, 7.25%
due 6/01/2003 (10).......... 14,748,329 12,527,410 1.1
- -------------------------------------------------------------------------------------------------------------------------
GERMANY DM 10,000,000 Bundes Obligation, 6.375% due
5/20/1998 (10).............. 6,117,597 6,274,380 0.6
- -------------------------------------------------------------------------------------------------------------------------
ITALY Buoni Poliennali del
Tesoro (10):
Lit 13,800,000,000 9.00% due 10/01/1998......... 8,398,060 8,317,629 0.7
13,000,000,000 10.00% due 8/01/2003......... 8,275,992 7,860,121 0.7
-------------- -------------- ----------
16,674,052 16,177,750 1.4
- -------------------------------------------------------------------------------------------------------------------------
MEXICO Mxp 53,174,920 Mexican Cetes, 16.25%** due
9/07/1995 (10).............. 14,984,332 13,081,658 1.2
- -------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM UK Treasury Gilt (10):
Pound 1,200,000 7.25% due 3/30/1998.......... 1,792,448 1,807,053 0.2
5,000,000 8.00% due 6/10/2003.......... 8,373,485 7,457,034 0.7
3,250,000 8.75% due 9/01/1997.......... 5,607,961 5,144,920 0.5
-------------- -------------- ----------
15,773,894 14,409,007 1.4
- -------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 81,919,423 75,079,813 6.8
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INDUSTRY US CORPORATE BONDS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
COMPUTERS US$ 5,000,000 Texas Instruments Inc., 9.00%
due 3/15/2001............... 5,143,400 5,200,000 0.5
- -------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES 10,000,000 Virginia Electric & Power
Co., 8.45% due 10/30/2003... 10,000,000 10,287,500 0.9
- -------------------------------------------------------------------------------------------------------------------------
INSURANCE 5,000,000 ITT Hartford Financial, 8.30%
due 12/01/2001.............. 5,107,750 5,118,750 0.5
- -------------------------------------------------------------------------------------------------------------------------
TOBACCO Philip Morris Cos., Inc.:
5,000,000 9.00% due 1/01/2001.......... 5,246,300 5,237,500 0.5
10,000,000 8.75% due 6/01/2001.......... 10,346,950 10,375,000 0.9
-------------- -------------- ----------
15,593,250 15,612,500 1.4
- -------------------------------------------------------------------------------------------------------------------------
TOTAL US CORPORATE BONDS 35,844,400 36,218,750 3.3
- -------------------------------------------------------------------------------------------------------------------------
US & FOREIGN GOVERNMENT &
AGENCY OBLIGATIONS
- -------------------------------------------------------------------------------------------------------------------------
FEDERAL AGENCY 20,000,000 Federal National Mortgage
OBLIGATIONS Association, 7.00% due
6/25/2023................... 18,925,000 18,218,750 1.6
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
36
<PAGE> 38
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE US & FOREIGN GOVERNMENT & VALUE PERCENT OF
AMOUNT* AGENCY OBLIGATIONS COST (NOTE 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT $ 5,000,000 Hydro Electric Quebec, 6.35%
OBLIGATIONS due 1/15/2002 (7)........... $ 5,000,000 $ 4,500,000 0.4%
5,000,000 Republic of Italy, 8.75% due
2/08/2001 (7)............... 5,373,050 5,215,985 0.5
-------------- -------------- ----------
10,373,050 9,715,985 0.9
- -------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT US Treasury Notes:
OBLIGATIONS 40,000,000 7.875% due 8/15/2001......... 39,230,800 41,512,520 3.7
6,000,000 7.50% due 11/15/2001......... 6,023,437 6,096,564 0.6
25,000,000 6.25% due 2/15/2003.......... 25,710,937 23,332,025 2.1
35,000,000 5.75% due 8/15/2003.......... 36,416,405 31,346,875 2.8
20,000,000 6.25% due 8/15/2023.......... 18,290,625 16,837,500 1.5
15,000,000 US Treasury STRIPS ++++,
3.38%**
due 5/15/2000................ 10,791,433 9,952,080 0.9
-------------- -------------- ----------
136,463,637 129,077,564 11.6
- -------------------------------------------------------------------------------------------------------------------------
TOTAL US & FOREIGN
GOVERNMENT &
AGENCY OBLIGATIONS 165,761,687 157,012,299 14.1
- -------------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- -------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER*** 51,372,000 General Electric Capital
Corp., 4.30% due
7/01/1994................... 51,372,000 51,372,000 4.6
Matterhorn Capital Corp.:
10,000,000 4.23% due 7/18/1994.......... 9,980,025 9,980,025 0.8
21,000,000 4.23% due 7/20/1994.......... 20,953,117 20,953,117 1.8
35,000,000 PHH Corp., 4.27% due
7/29/1994................... 34,883,761 34,883,761 3.1
40,000,000 Preferred Receivable Funding
Corp., 4.26% due 7/27/1994.. 39,876,933 39,876,933 3.5
25,000,000 Sheffield Receivables Corp.,
4.25% due 7/13/1994......... 24,964,583 24,964,583 2.2
- -------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 182,030,419 182,030,419 16.0
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS............ $1,101,532,896 1,115,887,891 100.1
==============
LIABILITIES IN EXCESS OF
OTHER ASSETS................. (1,210,766) (0.1)
-------------- ----------
NET ASSETS................... $1,114,677,125 100.0%
============== ===========
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Denominated in US dollars unless otherwise indicated.
** Represents the yield-to-maturity on this zero coupon issue.
*** Commercial Paper is traded on a discount basis; the interest rates shown
are discount rates paid at the time of purchase by the Portfolio.
**** Receipts evidence payment by the Portfolio of 40% of the purchase price of
Class A shares of International Semi-Tech Microelectronics, Inc. The
Portfolio is obligated to pay the remaining 60%, approximately $3,876,000,
over the next two years.
(a) American Depositary Receipt (ADR).
(b) Warrants entitle the Portfolio to purchase a predetermined number of shares
of Common Stock. The purchase price and number of shares are subject to
adjustment under certain conditions until the expiration date.
+ Non-income producing security.
++ Restricted securities. The value of the Fund's investment in restricted
securities was approximately $19,974,000, representing 1.8% of net assets.
+++ Corresponding industry groups for foreign stocks and bonds:
++++ STRIPS--Separate Trading of Registered Interest and Principal of
Securities.
(1) Appliances
(2) Auto Parts
(3) Banking
(4) Beverages
(5) Chemicals
(6) Communication Equipment
(7) Electrical Equipment
(8) Electronics
(9) Financial Services
(10) Government Entities
(11) Insurance
(12) Media/Publishing
(13) Multi-Industry
(14) Oil-Integrated
(15) Real Estate
(16) Retail
(17) Tools
(18) Utilities--Communications
(19) Utilities--Electric
(20) Utilities--Water
See Notes to Financial Statements.
37
<PAGE> 39
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Natural Resources Portfolio
Schedule of Investments as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD STOCKS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
ALUMINUM 18,000 Alcan Aluminum Ltd....................... $ 377,010 $ 409,500 2.0%
10,200 Reynolds Metals Co....................... 493,444 489,600 2.3
------------ ------------ ----------
870,454 899,100 4.3
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS 55,000 Asahi Chemical Industry Co............... 405,681 414,663 2.0
10,700 du Pont (E.I.) de Nemours & Co........... 542,044 624,613 3.0
------------ ------------ ----------
947,725 1,039,276 5.0
- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED RESOURCES 18,100 Coastal Corp............................. 496,516 488,700 2.3
COMPANIES 14,000 Cyprus Amax Minerals Co.................. 413,974 416,500 2.0
30,000 Freeport-McMoRan, Inc.................... 588,342 487,500 2.3
40,600 Norcen Energy Corp....................... 679,820 407,616 1.9
------------ ------------ ----------
2,178,652 1,800,316 8.5
- ----------------------------------------------------------------------------------------------------------------------------
GAS DISTRIBUTION/ 13,200 Consolidated Natural Gas Co.............. 643,387 498,300 2.4
TRANSMISSION
- ----------------------------------------------------------------------------------------------------------------------------
GOLD 50,000 Newcrest Mining Ltd...................... 228,852 236,617 1.1
7,613 Newmont Mining Corp...................... 329,664 306,423 1.5
17,000 Placer Dome, Inc......................... 421,609 365,500 1.7
------------ ------------ ----------
980,125 908,540 4.3
- ----------------------------------------------------------------------------------------------------------------------------
INTEGRATED OIL 11,800 Amoco Corp............................... 620,537 672,600 3.2
COMPANIES 10,000 Exxon Corp............................... 656,015 566,250 2.7
17,900 Imperial Oil Ltd......................... 674,229 523,575 2.5
12,000 Norsk Hydro a.s.......................... 305,474 376,500 1.8
13,000 Phillips Petroleum Co.................... 388,152 406,250 1.9
4,500 Royal Dutch Petroleum Co................. 409,290 470,812 2.2
12,000 Societe Nationale Elf Aquitaine Co.
(ADR)*.................................. 428,621 399,000 1.9
3,000 Total S.A. (Class B)..................... 169,945 172,535 0.8
17,000 YPF S.A. (ADR)*.......................... 422,432 405,875 1.9
------------ ------------ ----------
4,074,695 3,993,397 18.9
- ----------------------------------------------------------------------------------------------------------------------------
METALS & MINING 22,000 CRA Ltd.................................. 273,507 287,592 1.4
375 Freeport-McMoRan Copper & Gold Inc....... 10,096 8,344 0.0
174,000 M.I.M. Holdings Ltd...................... 386,287 365,968 1.8
31,000 Noranda Inc.............................. 609,550 529,939 2.5
7,000 Phelps Dodge Corp........................ 368,735 399,000 1.9
25,000 The RTZ Corp. PLC........................ 317,792 317,575 1.5
------------ ------------ ----------
1,965,967 1,908,418 9.1
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE> 40
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Natural Resources Portfolio
Schedule of Investments as of June 30, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE (NOTE PERCENT OF
INDUSTRY HELD STOCKS COST 1a) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
OIL & GAS PRODUCERS 82,000 Ampolex Ltd.............................. $ 256,864 $ 244,928 1.2%
61,000 Enterprise Oil PLC....................... 389,546 368,140 1.8
12,000 Oryx Energy Co........................... 199,885 180,000 0.8
6,000 Ranger Oil Ltd........................... 39,024 39,750 0.2
5,000 The Louisiana Land and Exploration Co.... 194,446 212,500 1.0
4,200 Vastar Resources Inc..................... 117,600 123,375 0.6
------------ ------------ ----------
1,197,365 1,168,693 5.6
- ----------------------------------------------------------------------------------------------------------------------------
OIL SERVICE 19,800 Dresser Industries, Inc.................. 430,746 405,900 1.9
16,000 IHC Caland N.V........................... 361,446 326,750 1.6
51,200 Rowan Companies, Inc..................... 502,820 448,000 2.1
10,200 Schlumberger Ltd., Inc................... 633,288 603,075 2.9
20,000 Tidewater Inc............................ 405,409 465,000 2.2
------------ ------------ ----------
2,333,709 2,248,725 10.7
- ----------------------------------------------------------------------------------------------------------------------------
PAPER & PULP 7,900 Georgia-Pacific Corp..................... 576,942 473,013 2.3
8,600 International Paper Co................... 577,877 569,750 2.7
2,000 Metsa Serla OY........................... 87,607 77,083 0.4
3,500 Mo Och Domsjoe AB Co..................... 138,764 138,160 0.7
10,000 Scott Paper Co........................... 395,566 522,500 2.5
12,100 Union Camp Corp.......................... 532,387 549,038 2.6
12,800 Weyerhaeuser Co.......................... 526,423 512,000 2.4
------------ ------------ ----------
2,835,566 2,841,544 13.6
- ----------------------------------------------------------------------------------------------------------------------------
PLANTATIONS 50,000 Kuala Lumpur Kepong...................... 100,405 116,203 0.6
- ----------------------------------------------------------------------------------------------------------------------------
POWER GENERATION 42,000 Destec Energy Inc........................ 692,161 420,000 2.0
- ----------------------------------------------------------------------------------------------------------------------------
REFINING 22,500 Total Petroleum (North America), Ltd..... 331,455 270,000 1.3
- ----------------------------------------------------------------------------------------------------------------------------
STEEL 25,000 Allegheny Ludlum Corp.................... 587,769 462,500 2.2
- ----------------------------------------------------------------------------------------------------------------------------
WOOD 12,000 Louisiana-Pacific Corp................... 496,720 366,000 1.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKS 20,236,155 18,941,012 90.2
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT SHORT-TERM SECURITIES
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER** $839,000 General Electric Capital Corp., 4.30% due
7/01/1994............................... 838,899 838,899 4.0
- ----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT 800,000 Federal Farm Credit Banks, 4.23% due
AGENCY OBLIGATIONS** 7/21/1994............................... 798,026 798,026 3.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 1,636,925 1,636,925 7.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS........................ $ 21,873,080 20,577,937 98.0
===========
OTHER ASSETS LESS LIABILITIES............ 427,442 2.0
------------ ----------
NET ASSETS............................... $ 21,005,379 100.0%
=========== ==========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* American Depositary Receipt (ADR).
** Commercial Paper and US Government Agency Obligations are traded on a
discount basis; the interest rates shown are the discount rates paid at the
time of the purchase by the Portfolio.
See Notes to Financial Statements.
39
<PAGE> 41
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Assets and Liabilities as of June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value* (Note 1a)........................................ $ 78,780,389 $ 206,352,436 $ 210,041,725
Cash.................................................................... 12,230 2,586,213 37,184
Interest receivable..................................................... 802,369 -- 1,056,145
Dividends receivable.................................................... 100,816 272,609 629,040
Foreign cash (Note 1e).................................................. -- 42,892 --
Receivable for securities sold.......................................... -- 274,864 --
Receivable for capital shares sold...................................... 16,711 2,258,785 577,640
Prepaid registration fees and other assets (Note 1d).................... 280 1,143 262
------------ ------------- -------------
Total assets.......................................................... 79,712,795 211,788,942 212,341,996
------------ ------------- -------------
LIABILITIES:
Payable for capital shares redeemed..................................... 439,582 1,066,942 710,072
Payable for securities purchased........................................ -- 3,647,635 --
Payable to investment adviser (Note 2).................................. 22,087 58,113 57,466
Accrued expenses and other liabilities.................................. 45,918 29,731 7,845
------------ ------------- -------------
Total liabilities..................................................... 507,587 4,802,421 775,383
------------ ------------- -------------
NET ASSETS.............................................................. $ 79,205,208 $ 206,986,521 $ 211,566,613
=========== ============= =============
NET ASSETS CONSIST OF:
Common Stock, $0.10 par value+.......................................... $ 590,035 $ 983,881 $ 1,414,083
Paid-in capital in excess of par........................................ 73,648,783 184,506,494 196,432,150
Undistributed investment income -- net.................................. 1,674,821 1,508,982 2,825,637
Undistributed (accumulated) realized capital gains (losses) on
investment and foreign currency transactions -- net................... 1,433,469 15,234,129 1,660,956
Unrealized appreciation/depreciation on investments and foreign currency
transactions -- net................................................... 1,858,100 4,753,035 9,233,787
------------ ------------- -------------
NET ASSETS.............................................................. $ 79,205,208 $ 206,986,521 $ 211,566,613
=========== ============= =============
Capital shares outstanding.............................................. 5,900,353 9,838,811 14,140,828
=========== ============= =============
Net asset value, offering and redemption price per share................ $ 13.42 $ 21.04 $ 14.96
=========== ============= =============
*Identified cost........................................................ $ 76,922,289 $ 201,598,472 $ 200,816,056
=========== ============= =============
+Authorized shares...................................................... 100,000,000 100,000,000 100,000,000
=========== ============= =============
</TABLE>
See Notes to Financial Statements.
40
<PAGE> 42
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
GROWTH HIGH GOVERNMENT CORPORATE MONEY MULTIPLE NATURAL
STOCK YIELD BOND BOND RESERVE STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
$ 96,413,033 $75,329,071 $233,314,835 $119,396,237 $ 549,854,024 $1,115,887,891 $20,577,937
5,224 2,582,717 437,970 998 12,900 4,113,673 470
-- 1,872,449 3,450,989 2,224,187 1,015,408 5,368,111 --
80,642 -- -- -- -- 1,051,174 34,078
-- -- -- -- -- -- --
590 -- 30,198 5,763,655 -- 843,629 --
1,324,160 17,579 184,571 280,794 -- 1,006,694 650,170
671 20,392 11,609 5,225 4,672 7,080 63
------------ ----------- ------------ ------------ ------------- -------------- -----------
97,824,320 79,822,208 237,430,172 127,671,096 550,887,004 1,128,278,252 21,262,718
------------ ----------- ------------ ------------ ------------- -------------- -----------
171,507 3,173,419 1,180,982 436,750 -- 2,695,954 74,729
-- 19,000 -- 6,546,679 -- 10,473,743 156,624
26,940 13,546 65,566 33,434 148,437 311,635 3,583
21,739 56,250 20,113 17,960 161,505 119,795 22,403
------------ ----------- ------------ ------------ ------------- -------------- -----------
220,186 3,262,215 1,266,661 7,034,823 309,942 13,601,127 257,339
------------ ----------- ------------ ------------ ------------- -------------- -----------
$ 97,604,134 $76,559,993 $236,163,511 $120,636,273 $ 550,577,062 $1,114,677,125 $21,005,379
============= =========== ============= ============= ============= ============== ===========
$ 542,427 $ 846,258 $ 2,216,866 $ 1,090,200 $ 55,110,586 $ 6,901,956 $ 285,094
104,877,175 82,326,332 245,615,295 124,418,868 495,995,269 1,001,608,766 33,768,315
677,451 716,784 1,341,650 704,957 -- 13,642,703 273,430
3,666,766 (3,947,574) (7,007,332) (2,591,581) -- 78,144,803 (12,026,557)
(12,159,685) (3,381,807) (6,002,968) (2,986,171) (528,793) 14,378,897 (1,294,903)
------------ ----------- ------------ ------------ ------------- -------------- -----------
$ 97,604,134 $76,559,993 $236,163,511 $120,636,273 $ 550,577,062 $1,114,677,125 $21,005,379
============= =========== ============= ============= ============= ============== ===========
5,424,275 8,462,583 22,168,659 10,901,986 551,105,855 69,019,557 2,850,939
============= =========== ============= ============= ============= ============== ===========
$ 17.99 $ 9.05 $ 10.65 $ 11.07 $ 1.00 $ 16.15 $ 7.37
============= =========== ============= ============= ============= ============== ===========
$108,572,718 $78,710,878 $239,317,803 $122,382,408 $ 550,382,817 $1,101,532,896 $21,873,080
============= =========== ============= ============= ============= ============== ===========
100,000,000 100,000,000 100,000,000 100,000,000 2,000,000,000 300,000,000 100,000,000
============= =========== ============= ============= ============= ============== ===========
</TABLE>
41
<PAGE> 43
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Operations for the Six Months Ended June 30, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (NOTES 1B & 1C):
Interest and amortization of premium and discount earned*............ $ 1,331,539 $ 326,150 $ 2,136,618
Dividends*........................................................... 536,129 1,469,540 1,407,195
Other income......................................................... -- 81,420 121
----------- ------------ -----------
Total income....................................................... 1,867,668 1,877,110 3,543,934
----------- ------------ -----------
EXPENSES:
Investment advisory fees (Note 2).................................... 138,684 360,923 334,724
Transfer agent fees (Note 2)......................................... 4,799 2,893 2,740
Custodian fees....................................................... 15,736 35,315 82,207
Professional fees.................................................... 6,878 7,258 5,481
Registration fees (Note 1d).......................................... 3,360 317 24,662
Directors' fees and expenses......................................... 799 1,118 1,370
Accounting services (Note 2)......................................... 1,599 22,914 16,442
Pricing services..................................................... 1,437 2,372 2,740
Other................................................................ 19,553 3,338 1,370
----------- ------------ -----------
Total expenses before reimbursement.................................. 192,845 436,448 471,736
Reimbursement of expenses (Note 2)................................... -- -- --
----------- ------------ -----------
Expenses after reimbursement......................................... 192,845 436,448 471,736
----------- ------------ -----------
Investment income -- net............................................. 1,674,823 1,440,662 3,072,198
----------- ------------ -----------
REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS & FOREIGN
TRANSACTIONS -- NET (NOTES 1C, 1E & 3):
Realized gain (loss) on investments -- net........................... 1,434,848 15,300,622 1,570,392
Realized gain (loss) on foreign currency transactions -- net......... -- 2,947 (153,442)
Change in unrealized appreciation/depreciation on investments --
net................................................................ (7,674,175) (36,013,826) (5,509,247)
Change in unrealized appreciation/depreciation on foreign currency
transactions -- net................................................ -- (462) 21,721
----------- ------------ -----------
Total realized and unrealized loss on investments and foreign
currency transactions -- net....................................... (6,239,327) (20,710,719) (4,070,576)
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...... $(4,564,504) $(19,270,057) $ (998,378)
=========== ============= ===========
*Net of withholding tax.............................................. $ -- $ 56,055 $ 144,721
=========== ============= ===========
</TABLE>
See Notes to Financial Statements.
42
<PAGE> 44
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
GROWTH HIGH GOVERNMENT CORPORATE MONEY MULTIPLE NATURAL
STOCK YIELD BOND BOND RESERVE STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
$ 400,090 $ 4,311,682 $ 8,898,898 $ 4,703,805 $10,058,477 $ 14,003,181 $ 36,746
419,839 46,322 -- -- -- 5,357,345 287,680
77,670 51,001 38,392 11,527 172 -- 17
------------ ----------- ------------ ------------ ----------- ------------- ---------
897,599 4,409,005 8,937,290 4,715,332 10,058,649 19,360,526 324,443
------------ ----------- ------------ ------------ ----------- ------------- ---------
177,570 142,900 424,976 214,450 895,151 1,954,625 33,728
3,138 4,435 2,342 2,877 1,518 1,963 2,797
21,966 17,749 14,159 14,131 1,599 131,729 9,680
5,340 6,408 6,950 5,412 7,790 21,733 2,495
-- -- 8 6 10 24 247
731 814 1,184 772 1,475 3,973 182
11,184 3,569 22,843 11,205 31,886 73,436 2,237
272 9,063 2,078 5,528 -- 1,744 196
1,943 18,465 -- 2,535 3,751 7,680 18,488
------------ ----------- ------------ ------------ ----------- ------------- ---------
222,144 203,403 474,540 256,916 943,180 2,196,907 70,050
-- (9,873) -- -- -- -- (19,027)
------------ ----------- ------------ ------------ ----------- ------------- ---------
222,144 193,530 474,540 256,916 943,180 2,196,907 51,023
------------ ----------- ------------ ------------ ----------- ------------- ---------
675,455 4,215,475 8,462,750 4,458,416 9,115,469 17,163,619 273,420
------------ ----------- ------------ ------------ ----------- ------------- ---------
3,666,772 (4,952) (6,613,342) (2,519,826) 4,891 77,613,781 92,725
-- -- -- -- -- (2,985,652) (1,358)
(19,968,349) (5,249,714) (15,677,474) (9,600,215) (540,333) (176,387,205) (873,055)
-- -- -- -- -- 111,254 240
------------ ----------- ------------ ------------ ----------- ------------- ---------
(16,301,577) (5,254,666) (22,290,816) (12,120,041) (535,442) (101,647,822) (781,448)
------------ ----------- ------------ ------------ ----------- ------------- ---------
$(15,626,122) $(1,039,191) $(13,828,066) $ (7,661,625) $ 8,580,027 $ (84,484,203) $(508,028)
============= =========== ============= ============= =========== ============== ==========
$ 7,992 $ -- $ -- $ -- $ -- $ 324,849 $ 17,166
============= =========== ============= ============= =========== ============== ==========
</TABLE>
43
<PAGE> 45
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO CAPITAL STOCK PORTFOLIO
------------------------------ ------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 1994 1993 1994 1993
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income -- net..................... $ 1,674,823 $ 2,739,184 $ 1,440,662 $ 2,993,422
Realized gain (loss) on investments and
foreign currency transactions -- net....... 1,434,848 1,294,829 15,303,569 22,586,369
Change in unrealized
appreciation/depreciation on
investments -- net......................... (7,674,175) 5,063,435 (36,013,826) 7,733,392
Change in unrealized
appreciation/depreciation on foreign
currency transactions -- net............... -- -- (462) (493)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations.................. (4,564,504) 9,097,448 (19,270,057) 33,312,690
----------- ----------- ------------ ------------
DIVIDENDS & DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1F):
Investment income -- net..................... (1,451,654) (3,304,634) (1,164,539) (5,214,104)
Realized gain on investments -- net.......... (1,294,833) (756,576) (22,655,649) (5,596,154)
----------- ----------- ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (2,746,487) (4,061,210) (23,820,188) (10,810,258)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ (1,502,145) 26,902,003 26,105,887 (948,421)
----------- ----------- ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... (8,813,136) 31,938,241 (16,984,358) 21,554,011
Beginning of period.......................... 88,018,344 56,080,103 223,970,879 202,416,868
----------- ----------- ------------ ------------
End of period*............................... $79,205,208 $88,018,344 $206,986,521 $223,970,879
=========== =========== ============ ============
* Undistributed investment income -- net..... $ 1,674,821 $ 1,451,652 $ 1,508,982 $ 1,232,859
=========== =========== ============ ============
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL STRATEGY PORTFOLIO GROWTH STOCK PORTFOLIO HIGH YIELD PORTFOLIO
------------------------------- ------------------------------- ------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1994 1993 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
$ 3,072,198 $ 3,194,088 $ 675,455 $ 1,749,152 $ 4,215,475 $ 8,348,169
1,416,950 2,945,006 3,666,772 18,276,850 (4,952) 2,381,169
(5,509,247) 12,963,335 (19,968,349) (9,921,076) (5,249,714) 2,702,167
21,721
(6,183) -- -- -- --
------------ ------------ ------------ ------------ ------------ -----------
(998,378) 19,096,246 (15,626,122) 10,104,926 (1,039,191) 13,431,505
------------ ------------ ------------ ------------ ------------ -----------
(2,306,636) (2,745,665) (851,555) (2,393,959) (4,205,476) (8,491,599)
(2,701,303) (722,008) (18,174,826) (5,017,036) -- --
------------ ------------ ------------ ------------ ------------ -----------
(5,007,939) (3,467,673) (19,026,381) (7,410,995) (4,205,476) (8,491,599)
------------ ------------ ------------ ------------ ------------ -----------
34,900,886 114,444,001 9,420,349 (18,919,845) (12,934,724) 21,765,864
------------ ------------ ------------ ------------ ------------ -----------
28,894,569 130,072,574 (25,232,154) (16,225,914) (18,179,391) 26,705,770
182,672,044 52,599,470 122,836,288 139,062,202 94,739,384 68,033,614
------------ ------------ ------------ ------------ ------------ -----------
$211,566,613 $182,672,044 $ 97,604,134 $122,836,288 $ 76,559,993 $94,739,384
============ ============ ============ ============ ============ ===========
$ 2,825,637 $ 2,060,075 $ 677,451 $ 853,551 $ 716,784 $ 706,785
============ ============ ============ ============ ============ ===========
</TABLE>
45
<PAGE> 47
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Changes in Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT BOND LONG TERM CORPORATE BOND
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 1994 1993 1994 1993
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income -- net..................... $ 8,462,750 $ 18,216,263 $ 4,458,416 $ 9,231,521
Realized gain (loss) on investments and
foreign currency transactions -- net....... (6,613,342) 9,062,256 (2,519,826) 4,818,952
Change in unrealized
appreciation/depreciation on
investments -- net......................... (15,677,474) 2,597,175 (9,600,215) 2,696,998
Change in unrealized
appreciation/depreciation on foreign
currency transactions -- net............... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations.................. (13,828,066) 29,875,694 (7,661,625) 16,747,471
------------ ------------ ------------ ------------
DIVIDENDS & DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1F):
Investment income -- net..................... (8,696,339) (18,258,239) (4,584,830) (9,257,762)
Realized gain on investments -- net.......... (9,386,959) (5,079,232) (4,821,218) (1,644,495)
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (18,083,298) (23,337,471) (9,406,048) (10,902,257)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ (16,420,151) 8,702,535 (1,616,816) 6,611,403
------------ ------------ ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... (48,331,515) 15,240,758 (18,684,489) 12,456,617
Beginning of period.......................... 284,495,026 269,254,268 139,320,762 126,864,145
------------ ------------ ------------ ------------
End of period*............................... $236,163,511 $284,495,026 $120,636,273 $139,320,762
============ ============ ============ ============
*Undistributed investment income -- net...... $ 1,341,650 $ 1,575,239 $ 704,957 $ 831,371
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
46
<PAGE> 48
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY RESERVE PORTFOLIO MULTIPLE STRATEGY PORTFOLIO NATURAL RESOURCES PORTFOLIO
------------------------------ --------------------------------- -----------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1994 1993 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
$ 9,115,469 $ 17,737,671 $ 17,163,619 $ 34,127,281 $ 273,420 $ 289,654
4,891 165,799 74,628,129 138,518,980 91,367 536,245
(540,333) (60,196) (176,387,205) 9,725,458 (873,055) (132,511)
-- -- 111,254 (65,630) 240 (11)
------------ ------------- -------------- -------------- ----------- -----------
8,580,027 17,843,274 (84,484,203) 182,306,089 (508,028) 693,377
------------ ------------- -------------- -------------- ----------- -----------
(9,115,469) (17,737,671) (19,769,393) (54,486,771) (171,206) (362,042)
(4,891) (165,799) (134,514,527) (49,964,250) -- --
------------ ------------- -------------- -------------- ----------- -----------
(9,120,360) (17,903,470) (154,283,920) (104,451,021) (171,206) (362,042)
------------ ------------- -------------- -------------- ----------- -----------
4,407,253 (100,419,340) 116,108,965 22,458,998 3,247,788 10,118,313
------------ ------------- -------------- -------------- ----------- -----------
3,866,920 (100,479,536) (122,659,158) 100,314,066 2,568,554 10,449,648
546,710,142 647,189,678 1,237,336,283 1,137,022,217 18,436,825 7,987,177
------------ ------------- -------------- -------------- ----------- -----------
$550,577,062 $ 546,710,142 $1,114,677,125 $1,237,336,283 $21,005,379 $18,436,825
============ ============= ============== ============== =========== ===========
$ -- $ -- $ 13,642,703 $ 16,248,477 $ 273,430 $ 171,216
============ ============= ============== ============== =========== ===========
</TABLE>
47
<PAGE> 49
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
---------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, ---------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE
BEEN DERIVED FROM INFORMATION PROVIDED IN THE
FINANCIAL STATEMENTS.
PER SHARE
OPERATING PERFORMANCE:
Net asset value, beginning of period......... $ 14.62 $ 13.70 $ 13.29 $ 11.78 $ 12.25
------- ------- ------- ------- -------
Investment income -- net..................... .28 .50 .47 .60 .64
Realized and unrealized gain (loss) on
investments and foreign currency
transactions -- net........................ (1.02) 1.35 .38 1.77 (.47)
------- ------- ------- ------- -------
Total from investment operations............. (.74) 1.85 .85 2.37 .17
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income -- net..................... (.24) (.75) (.26) (.68) (.56)
Realized gain on investments -- net.......... (.22) (.18) (.18) (.18) (.08)
------- ------- ------- ------- -------
Total dividends and distributions............ (.46) (.93) (.44) (.86) (.64)
------- ------- ------- ------- -------
Net asset value, end of period............... $ 13.42 $ 14.62 $ 13.70 $ 13.29 $ 11.78
======= ======== ======== ======== ========
TOTAL INVESTMENT RETURN:
Based on net asset value per share........... (5.24%)+ 14.31% 6.67% 20.95% 1.57%
======= ======== ======== ======= =======
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement............... .46%* .43% .48% .50% .50%
======= ======== ======== ======= =======
Expenses..................................... .46%* .43% .48% .50% .50%
======= ======== ======== ======= =======
Investment income -- net..................... 3.99%* 3.72% 4.40% 4.91% 5.56%
======= ======== ======== ======= =======
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $79,205 $88,018 $56,080 $38,128 $29,065
======= ======== ======== ======= =======
Portfolio turnover........................... 12.88% 25.38% 33.15% 58.77% 26.84%
======= ======== ======== ======= =======
</TABLE>
- ------------
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
48
<PAGE> 50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL STOCK PORTFOLIO GLOBAL STRATEGY PORTFOLIO
-------------------------------------------------------------------- ---------------------------------------
FOR THE SIX FOR THE SIX FOR THE YEAR ENDED
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31, MONTHS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------- JUNE 30, ----------------------
1994 1993 1992 1991 1990 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
$ 25.73 $ 23.22 $ 23.39 $ 19.65 $ 20.19 $ 15.42 $ 13.23 $ 13.16
------------ --------- --------- --------- --------- ------------ --------- --------
.14 .33 .39 .45 .54 .22 .36 .39
(2.10) 3.41 .16 4.97 (.44) (.26) 2.61 (.01)
----------- --------- --------- --------- --------- ----------- --------- --------
(1.96) 3.74 .55 5.42 .10 (.04) 2.97 .38
----------- --------- --------- --------- --------- ----------- --------- --------
(.13) (.59) (.20) (.54) (.52) (.19) (.60) (.17)
(2.60) (.64) (.52) (1.14) (.12) (.23) (.18) (.14)
----------- --------- --------- --------- --------- ----------- --------- --------
(2.73) (1.23) (.72) (1.68) (.64) (.42) (.78) (.31)
----------- --------- --------- --------- --------- ----------- --------- --------
$ 21.04 $ 25.73 $ 23.22 $ 23.39 $ 19.65 $ 14.96 $ 15.42 $ 13.23
=========== ========= ========= ========= ========= =========== ========= ========
(8.40%)+ 17.01% 2.47% 29.05% 0.61% (0.25%)+ 23.73% 3.00%
=========== ========= ========= ========= ========= =========== ========= ========
.40%* .38% .41% .40% .40% .49%* .45% .50%
=========== ========= ========= ========= ========= =========== ========= ========
.40%* .38% .41% .40% .40% .49%* .46% .54%
=========== ========= ========= ========= ========= =========== ========= ========
1.32%* 1.43% 1.89% 2.27% 2.66% 3.16%* 3.27% 3.84%
=========== ========= ========= ========= ========= =========== ========= ========
$ 206,987 $ 223,971 $ 202,417 $ 177,604 $ 128,511 $ 211,567 $ 182,672 $ 52,599
=========== ========= ========= ========= ========= =========== ========= ========
45.29% 100.12% 74.89% 63.90% 61.76% 8.53% 30.53% 43.56%
=========== ========= ========= ========= ========= =========== ========= ========
<CAPTION>
GLOBAL STRATEGY PORTFOLIO
-------------------------
FOR THE YEAR ENDED
DECEMBER 31,
----------------------
1991 1990
<S> <C> <C>
$ 12.00 $ 11.68
-------- --------
.41 .82
1.60 (.14)
-------- --------
2.01 .68
-------- --------
(.85) (.36)
-- --
-------- --------
(.85) (.36)
-------- --------
$ 13.16 $ 12.00
======== ========
17.50% 6.01%
======== ========
.50% .50%
======== ========
.60% .61%
======== ========
3.86% 8.03%
======== ========
$ 29,893 $ 22,087
======== ========
93.85% 104.19%
======== ========
</TABLE>
49
<PAGE> 51
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH STOCK PORTFOLIO
--------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE
BEEN DERIVED FROM INFORMATION PROVIDED IN
THE FINANCIAL STATEMENTS.
PER SHARE
OPERATING PERFORMANCE:
Net asset value, beginning of period......... $ 24.65 $ 23.98 $ 23.31 $ 16.28 $ 18.95
---------- -------- -------- -------- -------
Investment income -- net..................... .12 .32 .26 .25 .29
Realized and unrealized gain (loss) on
investments and foreign currency
transactions -- net........................ (2.96) 1.63 .53 7.06 (2.63)
---------- -------- -------- -------- -------
Total from investment operations............. (2.84) 1.95 .79 7.31 (2.34)
---------- -------- -------- -------- -------
Less dividends and distributions:
Investment income -- net..................... (.17) (.41) (.12) (.28) (.33)
Realized gain on investments -- net.......... (3.65) (.87) -- -- --
---------- -------- -------- -------- -------
Total dividends and distributions............ (3.82) (1.28) (.12) (.28) (.33)
---------- -------- -------- -------- -------
Net asset value, end of period............... $ 17.99 $ 24.65 $ 23.98 $ 23.31 $ 16.28
========== ======== ======== ======== =======
TOTAL INVESTMENT RETURN:
Based on net asset value per share........... (13.40%)+ 8.63% 3.40% 45.31% (12.41%)
========== ======== ======== ======== =======
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement............... .41%* .38% .42% .42% .43%
========== ======== ======== ======== =======
Expenses..................................... .41%* .38% .42% .42% .43%
========== ======== ======== ======== =======
Investment income -- net..................... 1.26%* 1.35% 1.32% 1.56% 1.43%
========== ======== ======== ======== =======
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $97,604 $122,836 $139,062 $113,715 $52,086
========== ======== ======== ======== =======
Portfolio turnover........................... 23.62% 160.29% 87.25% 60.48% 94.54%
========== ======== ======== ======== =======
</TABLE>
- ------------
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
50
<PAGE> 52
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD PORTFOLIO
---------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C>
---------------------------------------------------------------------
$ 9.68 $ 9.10 $ 8.44 $ 6.98 $ 8.92
----------- -------- -------- -------- --------
.47 .94 1.03 1.02 1.24
(.64) .62 .64 1.47 (1.94)
----------- -------- -------- -------- --------
(.17) 1.56 1.67 2.49 (.70)
----------- -------- -------- -------- --------
(.46) (.98) (1.01) (1.03) (1.24)
-- -- -- -- --
----------- -------- -------- -------- --------
(.46) (.98) (1.01) (1.03) (1.24)
----------- -------- -------- -------- --------
$ 9.05 $ 9.68 $ 9.10 $ 8.44 $ 6.98
=========== ======== ======== ======== ========
(1.89%)+ 18.11% 20.63% 37.77% (8.83%)
=========== ======== ======== ======== ========
.45%* .43% .44% .46% .45%
=========== ======== ======== ======== ========
.47%* .43% .44% .46% .45%
=========== ======== ======== ======== ========
9.75%* 10.17% 11.45% 12.74% 14.93%
=========== ======== ======== ======== ========
$ 76,560 $ 94,739 $ 68,034 $ 51,072 $ 34,673
=========== ======== ======== ======== ========
45.21% 73.01% 83.95% 76.34% 31.01%
=========== ======== ======== ======== ========
</TABLE>
51
<PAGE> 53
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS
HAVE BEEN DERIVED FROM INFORMATION
PROVIDED IN
THE FINANCIAL STATEMENTS.
PER SHARE
OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 12.02 $ 11.75 $ 11.79 $ 11.04 $ 11.02
-------- -------- -------- -------- --------
Investment income -- net................ .36 .77 .83 .86 .92
Realized and unrealized gain (loss) on
investments and foreign currency
transactions -- net................... (.96) .49 (.04) .76 .01
-------- -------- -------- -------- --------
Total from investment operations........ (.60) 1.26 .79 1.62 .93
-------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Investment income -- net................ (.37) (.77) (.83) (.87) (.91)
Realized gain on investments -- net..... (.40) (.22) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions....... (.77) (.99) (.83) (.87) (.91)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 10.65 $ 12.02 $ 11.75 $ 11.79 $ 11.04
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN:
Based on net asset value per share...... (5.22%)+ 11.20% 7.03% 15.57% 8.98%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS:
Expenses................................ .37%* .36% .40% .39% .40%
======== ======== ======== ======== ========
Investment income -- net................ 6.58%* 6.42% 7.03% 7.82% 8.50%
======== ======== ======== ======== ========
Investment income -- net, and realized
gain (loss) on investments -- net..... -- -- -- -- --
======== ======== ======== ======== ========
SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)............................ $236,164 $284,495 $269,254 $261,434 $231,672
======== ======== ======== ======== ========
Portfolio turnover...................... 80.98% 113.61% 80.54% 138.41% 129.98%
======== ======== ======== ======== ========
</TABLE>
- ------------
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
52
<PAGE> 54
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LONG TERM CORPORATE BOND PORTFOLIO MONEY RESERVE PORTFOLIO
-------------------------------------------------------------------- ----------------------------------------
FOR THE SIX FOR THE SIX FOR THE YEAR ENDED
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31, MONTHS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------- JUNE 30, -----------------------
1994 1993 1992 1991 1990 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
$ 12.59 $ 12.07 $ 12.06 $ 11.21 $ 11.36 $ 1.00 $ 1.00 $ 1.00
---------- --------- --------- --------- --------- ---------- --------- ---------
.40 .83 .90 .96 .98 .02 .03 .04
(1.07) .68 .02 .85 (.15) -- -- --
---------- --------- --------- --------- --------- ---------- --------- ---------
(.67) 1.51 .92 1.81 .83 .02 .03 .04
---------- --------- --------- --------- --------- ---------- --------- ---------
(.41) (.83) (.91) (.96) (.98) (.02) (.03) (.04)
(.44) (.16) -- -- -- -- -- --
---------- --------- --------- --------- --------- ---------- --------- ---------
(.85) (.99) (.91) (.96) (.98) (.02) (.03) (.04)
---------- --------- --------- --------- --------- ---------- --------- ---------
$ 11.07 $ 12.59 $ 12.07 $ 12.06 $ 11.21 $ 1.00 $ 1.00 $ 1.00
========== ========= ========= ========= ========= ========== ========= =========
(5.63%)+ 13.01% 8.05% 17.01% 7.83% 3.39%* 3.08% 3.76%
========== ========= ========= ========= ========= ========== ========= =========
.40%* .38% .43% .42% .43% .35%* .36% .39%
========== ========= ========= ========= ========= ========== ========= =========
6.87%* 6.65% 7.51% 8.35% 8.81% -- -- --
========== ========= ========= ========= ========= ========== ========= =========
-- -- -- -- -- 3.37%* 3.03% 3.77%
========== ========= ========= ========= ========= ========== ========= =========
$120,636 $ 139,321 $ 126,864 $ 128,396 $ 119,237 $550,577 $ 546,710 $ 647,190
========== ========= ========= ========= ========= ========== ========= =========
62.34% 110.53% 93.10% 124.58% 107.36% -- -- --
========== ========= ========= ========= ========= ========== ========= =========
<CAPTION>
MONEY RESERVE PORTFOLIO
-----------------------
FOR THE YEAR ENDED
DECEMBER 31,
-----------------------
1991 1990
<S> <C> <C>
-----------------------
$ 1.00 $ 1.00
--------- ---------
.06 .08
-- --
--------- ---------
.06 .08
--------- ---------
(.06) (.08)
-- --
--------- ---------
(.06) (.08)
--------- ---------
$ 1.00 $ 1.00
========= =========
6.11% 8.21%
========= =========
.38% .39%
========= =========
-- --
========= =========
5.97% 7.92%
========= =========
$ 798,020 $ 935,463
========= =========
-- --
========= =========
</TABLE>
53
<PAGE> 55
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MULTIPLE STRATEGY PORTFOLIO
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE
BEEN DERIVED FROM INFORMATION PROVIDED IN
THE FINANCIAL STATEMENTS.
PER SHARE
OPERATING PERFORMANCE:
Net asset value, beginning of period....... $ 19.84 $ 18.70 $ 18.32 $ 15.45 $ 15.56
------------ ---------- ---------- ---------- ----------
Investment income -- net................... .26 .54 .61 .72 .99
Realized and unrealized gain (loss) on
investments and foreign currency
transactions -- net...................... (1.47) 2.30 .17 3.13 (.27)
------------ ---------- ---------- ---------- ----------
Total from investment operations........... (1.21) 2.84 .78 3.85 .72
------------ ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income -- net................... (.32) (.88) (.32) (.98) (.83)
Realized gain on investments -- net........ (2.16) (.82) (.08) -- --
------------ ---------- ---------- ---------- ----------
Total dividends and distributions.......... (2.48) (1.70) (.40) (.98) (.83)
------------ ---------- ---------- ---------- ----------
Net asset value, end of period............. $ 16.15 $ 19.84 $ 18.70 $ 18.32 $ 15.45
============ ========== ========== ========== ==========
TOTAL INVESTMENT RETURN:
Based on net asset value per share......... (6.92%)+ 16.66% 4.35% 25.97% 4.91%
============ ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement............. .37%* .36% .40% .39% .41%
============ ========== ========== ========== ==========
Expenses................................... .37%* .36% .40% .39% .41%
============ ========== ========== ========== ==========
Investment income -- net................... 2.92%* 2.91% 3.26% 4.17% 6.07%
============ ========== ========== ========== ==========
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $ 1,114,677 $1,237,336 $1,137,022 $1,152,395 $1,018,054
============ ========== ========== ========== ==========
Portfolio turnover......................... 35.43% 91.08% 67.71% 95.48% 106.39%
============ ========== ========== ========== ==========
</TABLE>
- ------------
* Annualized.
+ Aggregate total investment returns.
See Notes to Financial Statements.
54
<PAGE> 56
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATURAL RESOURCES PORTFOLIO
--------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C>
--------------------------------------------------------------
$ 7.53 $ 7.01 $ 7.04 $ 7.18 $ 7.84
---------- ------- ------ ------ -------
.10 .13 .21 .27 .21
(.19) .66 (.12) (.14) (.69)
---------- ------- ------ ------ -------
(.09) .79 .09 .13 (.48)
---------- ------- ------ ------ -------
(.07) (.27) (.12) (.27) (.18)
-- -- -- -- --
---------- ------- ------ ------ -------
(.07) (.27) (.12) (.27) (.18)
---------- ------- ------ ------ -------
$ 7.37 $ 7.53 $ 7.01 $ 7.04 $ 7.18
========== ======== ======= ======= ========
(1.21%)+ 11.65% 1.35% 1.67% (6.18%)
========== ======== ======= ======= ========
.50%* .50% .50% .50% .50%
========== ======== ======= ======= ========
.50%* .59% .82% .74% .63%
========== ======== ======= ======= ========
2.68%* 2.00% 2.84% 3.12% 2.76%
========== ======== ======= ======= ========
$ 21,005 $18,437 $7,987 $8,030 $11,256
========== ======== ======= ======= ========
25.35% 65.26% 32.14% 30.20% 56.60%
========== ======== ======= ======= ========
</TABLE>
55
<PAGE> 57
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES:
Merrill Lynch Series Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Fund offers its shares to Merrill Lynch Life Insurance Company, ML Life
Insurance Company of New York (indirect wholly-owned subsidiaries of Merrill
Lynch & Co., Inc. ("ML & Co.")) and Monarch Life Insurance Company (an insurance
company not affiliated with ML & Co.) separate accounts to fund benefits under
certain variable life insurance contracts. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--Money Reserve and Multiple Strategy Portfolios:
Investments maturing more than sixty days after the valuation date are valued at
the most recent bid price or yield equivalent as obtained from dealers that make
markets in such securities. When such securities are valued with sixty days or
less to maturity, the difference between the valuation existing on the
sixty-first day before maturity and maturity value is amortized on a
straight-line basis to maturity. Investments maturing within sixty days from
their date of acquisition are valued at amortized cost, which approximates
market value. For the purpose of valuation, the maturity of a variable rate
certificate of deposit is deemed to be the next coupon date on which the
interest rate is to be adjusted.
Balanced, Capital Stock, Global Strategy, Growth Stock, High Yield, Intermediate
Government Bond, Long Term Corporate Bond, Multiple Strategy and Natural
Resources Portfolios: Portfolio securities which are traded on stock exchanges
are valued at the last sale price as of the close of business on the day the
securities are being valued or, lacking any sales, at the closing bid price.
Securities other than money market securities traded in the over-the-counter
market are valued at the bid or yield equivalent as obtained from one or more
dealers that make markets in the securities. Portfolio securities which are
traded both in the over-the-counter market and on a stock exchange are valued
according to the broadest and most representative market, and it is expected
that for debt securities this ordinarily will be the over-the-counter market.
Options are valued at the last bid price in the case of options purchased and
the last asked price in the case of options written. Futures contracts are
valued at settlement price at the close of the applicable exchange. Securities
and assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of the Board of
Directors of the Fund.
(b) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
(c) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Dividend income is recorded on the ex-dividend dates, except that if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as soon as the Funds are informed of the ex-dividend date. Interest
income (including amortization of premium and discount) is recognized on the
accrual basis. Realized gains and losses on security transactions are determined
on the identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(e) Foreign currency transactions--Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into US dollars. Realized and unrealized gains or losses from
investments include the effects of foreign exchange rates on investments.
Global Strategy, Multiple Strategy and Natural Resources Portfolios are
authorized to enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts are not
entered on the Portfolio's records. However, the effect on operations is
recorded from
56
<PAGE> 58
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
the date the Portfolio enters into such contracts. Premium or discount is
amortized over the life of the contracts.
(f) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(g) Options--When the Fund sells an option, an amount equal to the premium
received by the Fund is reflected as an asset and an equivalent liability. The
amount of the liability is subsequently marked to market to reflect the current
market value of the option written.
When a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the basis of
the security acquired or deducted from (or added to) the proceeds of the
security sold. When an option expires (or the Fund enters into a closing
transaction), the Fund realizes a gain or loss on the option to the extent of
the premiums received or paid (or gain or loss to the extent the cost of the
closing transaction is less than or greater than the premium paid or received).
Written and purchased options are non-income producing investments.
(h) Reclassification--Certain 1993 amounts have been reclassified to conform to
the 1994 presentation.
2. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH AFFILIATES:
The Fund has entered into an Investment Advisory Agreement with Merrill Lynch
Asset Management ("MLAM"). The general partner of MLAM is Princeton Services,
Inc., an indirect wholly-owned subsidiary of Merrill Lynch and Co. ("ML & Co.").
The limited partners are ML & Co. and Merrill Lynch Investment Management, Inc.
("MLIM"), which is also an indirect wholly-owned subsidiary of ML & Co. The Fund
has also entered into a Distribution Agreement and a Distribution Plan with
Merrill Lynch Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of MLIM. MLAM is responsible for the management of the Fund's
portfolios and provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the aggregate average daily
value of the ten combined Portfolio's net assets at the following annual rates:
0.50% of the Fund's average daily net assets not exceeding $250 million, 0.45%
of the next $50 million, 0.40% of the next $100 million, 0.35% of the next $400
million, and 0.30% of average daily net assets in excess of $800 million.
The Investment Advisory Agreement obligates MLAM to reimburse the Fund, if in
any year the aggregate ordinary operating expenses of any Portfolio exceed the
most restrictive expense limitations then in effect under any state securities
law or the regulations thereunder. Under the most restrictive state regulations
presently in effect, the Investment Adviser is required to reimburse each
Portfolio for advisory fees received by it from the Fund, to the extent that
such Portfolio's aggregate ordinary operating expenses (excluding interest,
taxes, brokerage fees and commissions, and extraordinary items) exceed in any
fiscal year 2.5% of the Portfolio's first $30 million of average daily net
assets, 2.0% of the next $70 million of average daily net assets and 1.5% of the
average daily net assets in excess thereof. In addition, the Investment Adviser,
Merrill Lynch Life Agency, Inc. and Monarch Life Insurance Co. ("Monarch")
entered into an agreement which provided that Monarch will reimburse the Fund's
operating expenses other than interest, taxes, brokerage fees and commissions
and extraordinary items, with respect to each Portfolio, to the extent that
these expenses exceed 0.50% of the Portfolio's average daily net assets. Monarch
will also reimburse MLAM for any amount MLAM is required to pay to the Fund by
reduction of its fee pursuant to the expense limitation provisions of the
Investment Advisory Agreement. For the six months ended June 30, 1994, MLAM
elected to reimburse the High Yield Portfolio and Natural Resources Portfolio
for additional expenses of $9,873 and $19,027, respectively.
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S"), an affiliate of MLIM,
earned commissions on the execution of portfolio security transactions
aggregating $8,592 in the Capital Stock Portfolio, $12,814 in the Global
Strategy Portfolio, $3,650 in the Growth Stock Portfolio, $55,878 in the
Multiple Strategy Portfolio, and $762 in the Natural Resources Portfolio.
57
<PAGE> 59
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co. is
the Fund's transfer agent.
During the six months ended June 30, 1994, Merrill Lynch Security Pricing
Service, an affiliate of MLPF&S paid Intermediate Government Bond Portfolio
$2,078; Growth Stock Portfolio $272; Balanced Portfolio $1,437; High Yield
Portfolio $9,063; and Long-Term Corporate $5,528 for security price quotations
to compute the Net Asset Value of the Fund.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or directors of
MLIM, FDS, MLPF&S, and/or ML&Co.
3. INVESTMENTS:
Purchases and sales of investments, excluding short-term securities for the six
months ended June 30, 1994 were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
CAPITAL GLOBAL GROWTH HIGH GOVERNMENT
BALANCED STOCK STRATEGY STOCK YIELD BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Total Purchases............... $14,432,128 $92,308,882 $65,681,710 $20,404,209 $37,057,318 $199,490,965
=========== =========== =========== =========== =========== ============
Total Sales................... $10,045,429 $91,994,364 $15,773,779 $68,805,476 $46,052,106 $245,059,786
=========== =========== =========== =========== =========== ============
<CAPTION>
LONG TERM
CORPORATE MULTIPLE NATURAL
BOND STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- ------------------------------------------------------------------------
Total Purchases............... $75,501,105 $367,870,645 $8,695,825
=========== ============ ==========
Total Sales................... $82,286,970 $472,702,219 $4,611,223
=========== ============ ==========
</TABLE>
In the Capital Stock Portfolio, transactions in call options written for the six
months ended June 30, 1994 were as follows:
<TABLE>
<CAPTION>
NUMBER OF
SHARES
CALL OPTIONS WRITTEN COVERED PREMIUMS
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Outstanding options at beginning of period.............................................. -- --
Options written......................................................................... 100 $ 10,548
Options exercised....................................................................... (100) (10,548)
---- --------
Outstanding options at end of period.................................................... -- $ --
==== ========
</TABLE>
In the Multiple Strategy Portfolio, transactions in call options written for the
six months ended June 30, 1994 were as follows:
<TABLE>
<CAPTION>
NUMBER OF
SHARES
CALL OPTIONS WRITTEN COVERED PREMIUMS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Outstanding options at beginning of period.............................................. -- --
Options written......................................................................... 35,400 $43,726
Options terminated in closing purchase transactions..................................... (7,500) (7,630)
Options exercised....................................................................... (20,000) (28,060)
Options expired......................................................................... (7,900) (8,036)
-------- -------
Outstanding options at end of period.................................................... -- $ --
======== =======
</TABLE>
58
<PAGE> 60
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
As of June 30, 1994, unrealized appreciation/depreciation for Federal Income tax
purposes was as follows:
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Appreciated securities............................................................ $ 5,018,824 $ 17,980,847 $ 18,717,504
Depreciated securities............................................................ (3,160,724) (13,226,883) (9,491,835)
=========== ============ ============
Net unrealized appreciation/depreciation.......................................... $ 1,858,100 $ 4,753,964 $ 9,225,669
=========== ============ ============
Cost for Federal income tax purposes.............................................. $76,922,289 $201,598,472 $200,816,056
=========== ============ ============
<CAPTION>
GROWTH HIGH
STOCK YIELD
PORTFOLIO PORTFOLIO
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Appreciated securities............................................................ $ 780,162 $ 1,755,290
Depreciated securities............................................................ (12,939,847) (5,137,097)
============ ===========
Net unrealized appreciation/depreciation.......................................... $(12,159,685) $(3,381,807)
============ ===========
Cost for Federal income tax purposes.............................................. $108,572,718 $78,710,878
============ ===========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
GOVERNMENT CORPORATE MONEY
BOND BOND RESERVE
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Appreciated securities...................................................... $ 1,579,162 $ 1,034,825 $ 349
Depreciated securities...................................................... (7,582,130) (4,020,996) (529,142)
============ ============ ============
Net unrealized appreciation/depreciation.................................... $ (6,002,968) $ (2,986,171) $ (528,793)
============ ============ ============
Cost for Federal income tax purposes........................................ $239,317,803 $122,382,408 $550,382,817
============ ============ ============
<CAPTION>
MULTIPLE NATURAL
STRATEGY RESOURCES
PORTFOLIO PORTFOLIO
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
Appreciated securities...................................................... $ 81,592,721 $ 627,508
Depreciated securities...................................................... (67,237,726) (1,922,651)
============== ==============
Net unrealized appreciation/depreciation.................................... $ 14,354,995 $ (1,295,143)
============== ==============
Cost for Federal income tax purposes........................................ $1,101,532,896 $ 21,873,080
============== ==============
</TABLE>
- ------------
* Net of premium received on options written.
59
<PAGE> 61
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
Net realized and unrealized gains (losses) as of June 30, 1994 were as follows:
<TABLE>
<CAPTION>
BALANCED CAPITAL STOCK GLOBAL STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------- ------------------------ -----------------------
REALIZED UNREALIZED REALIZED
GAINS UNREALIZED REALIZED GAINS GAINS UNREALIZED
(LOSSES) GAINS GAINS (LOSSES) (LOSSES) GAINS
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
Long-term securities............ $1,435,013 $1,858,100 $15,300,622 $4,753,964 $1,570,231 $9,225,669
Short-term securities........... (165) -- -- -- 161 --
Options......................... -- -- -- -- -- --
Foreign currency transactions... -- -- 2,947 (929) (153,442) 8,118
---------- ---------- ----------- ---------- ---------- ----------
Total........................... $1,434,848 $1,858,100 $15,303,569 $4,753,035 $1,416,950 $9,233,787
========== ========== =========== ========== ========== ==========
<CAPTION>
PORTFOLIO PORTFOLIO
-------------------------- ----------------------
REALIZED REALIZED
GAINS UNREALIZED GAINS UNREALIZED
(LOSSES) LOSSES (LOSSES) LOSSES
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
Long-term securities............ $3,667,103 $(12,159,685) $ 11,487 $(3,381,807)
Short-term securities........... (331) -- (16,439) --
Options......................... -- -- -- --
Foreign currency transactions... -- -- -- --
---------- ------------ -------- -----------
Total........................... $3,666,772 $(12,159,685) $ (4,952) $(3,381,807)
========== ============ ========= ===========
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
CAPITAL STOCK GLOBAL STRATEGY
BALANCED PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ------------------------- -------------------------
FOR THE SIX MONTHS ENDED DOLLAR DOLLAR DOLLAR
JUNE 30, 1994 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------- -------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold........................................ 480,080 $ 6,693,251 1,952,652 $ 44,163,491 3,212,024 $ 48,825,029
Shares issued to shareholders in reinvestment of
dividends and distributions to shareholders....... 194,648 2,746,487 1,046,122 23,820,188 334,085 5,007,939
-------- ------------ ---------- ------------ ---------- ------------
Total issued....................................... 674,728 9,439,738 2,998,774 67,983,679 3,546,109 53,832,968
Shares redeemed.................................... (793,466) (10,941,883) (1,864,518) (41,877,792) (1,255,026) (18,932,082)
-------- ------------ ---------- ------------ ---------- ------------
Net increase (decrease)............................ (118,738) $ (1,502,145) 1,134,256 $ 26,105,887 2,291,083 $ 34,900,886
======== ============ ========== ============ ========== ============
<CAPTION>
GROWTH STOCK PORTFOLIO
-------------------------
FOR THE SIX MONTHS ENDED DOLLAR
JUNE 30, 1994 SHARES AMOUNT
- --------------------------------------------------- ---------- ------------
<S> <C> <C>
Shares sold........................................ 1,062,149 $ 20,510,842
Shares issued to shareholders in reinvestment of
dividends and distributions to shareholders....... 929,930 19,026,381
---------- ------------
Total issued....................................... 1,992,079 39,537,223
Shares redeemed.................................... (1,550,688) (30,116,874)
---------- ------------
Net increase (decrease)............................ 441,391 $ 9,420,349
========== ============
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1993 SHARES AMOUNT SHARES AMOUNT SHARES
- ------------------------------------------------- ----------- ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Shares sold...................................... 2,187,445 $30,842,402 2,648,003 $ 61,600,015 9,185,981
Shares issued to shareholders in reinvestment of
dividends and distributions to shareholders..... 305,371 4,061,210 487,302 10,810,258 266,275
---------- ----------- ---------- ------------ ----------
Total issued..................................... 2,492,816 34,903,612 3,135,305 72,410,273 9,452,256
Shares redeemed.................................. (567,022) (8,001,609) (3,146,632) (73,358,694) (1,577,997)
---------- ----------- ---------- ------------ ----------
Net increase (decrease).......................... 1,925,794 $26,902,003 (11,327) $ (948,421) 7,874,259
========== =========== ========== ============ ==========
<CAPTION>
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1993 AMOUNT SHARES AMOUNT
- ------------------------------------------------- ------------- ----------- -------------
<S> <C> <C> <C>
Shares sold...................................... $133,326,793 2,765,508 $ 63,983,886
Shares issued to shareholders in reinvestment of
dividends and distributions to shareholders..... 3,467,673 326,625 7,410,995
------------ ---------- ------------
Total issued..................................... 136,794,466 3,092,133 71,394,881
Shares redeemed.................................. (22,350,465) (3,907,138) (90,314,726)
------------ ---------- ------------
Net increase (decrease).......................... $114,444,001 (815,005) $(18,919,845)
============ ========== ============
</TABLE>
60
<PAGE> 62
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM MONEY RESERVE
GOVERNMENT CORPORATE PORTFOLIO
BOND PORTFOLIO BOND PORTFOLIO -----------------------
--------------------------- ---------------------------
REALIZED UNREALIZED REALIZED UNREALIZED REALIZED UNREALIZED
LOSSES LOSSES LOSSES LOSSES GAINS LOSSES
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
$(6,613,342) $(6,002,968) $(2,519,709) $(2,986,171) -- --
-- -- (117) -- $4,891 $(528,793)
-- -- -- -- -- --
-- -- -- -- -- --
----------- ----------- ----------- ----------- -------- ----------
$(6,613,342) $(6,002,968) $(2,519,826) $(2,986,171) $4,891 $(528,793)
=========== =========== =========== =========== ======== ==========
<CAPTION>
MULTIPLE STRATEGY NATURAL RESOURCES
PORTFOLIO PORTFOLIO
--------------------------- ------------------------
REALIZED REALIZED UNREALIZED
GAINS UNREALIZED GAINS GAINS
(LOSSES) GAINS (LOSSES) (LOSSES)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------
$77,599,439 $14,354,995 $92,751 $(1,295,143)
-- -- (26) --
14,342 -- -- --
(2,985,652) 23,902 (1,358) 240
----------- ----------- -------- -----------
$74,628,129 $14,378,897 $91,367 $(1,294,903)
=========== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT BOND LONG TERM CORPORATE
HIGH YIELD PORTFOLIO PORTFOLIO BOND PORTFOLIO
--------------------------- --------------------------- ---------------------------
DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
4,097,817 $ 38,045,990 280,717 $ 3,104,850 367,382 $ 4,311,258
446,788 4,205,476 1,601,980 18,083,298 797,633 9,406,048
---------- ------------ ---------- ------------ ---------- ------------
4,544,605 42,251,466 1,882,697 21,188,148 1,165,015 13,717,306
(5,871,805) (55,186,190) (3,389,363) (37,608,299) (1,328,635) (15,334,122)
---------- ------------ ---------- ------------ ---------- ------------
(1,327,200) $(12,934,724) (1,506,666) $(16,420,151) (163,620) $ (1,616,816)
========= ============ ========== ============ ========== ============
<CAPTION>
MULTIPLE STRATEGY NATURAL RESOURCES
MONEY RESERVE PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------- --------------------------- ---------------------------
DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
133,909,909 $ 133,909,909 972,726 $ 16,690,007 1,846,940 $ 14,177,076
9,120,106 9,120,106 8,949,183 154,283,919 -- --
----------- ------------- ---------- ------------ ---------- ------------
143,030,015 143,030,015 9,921,909 170,973,926 1,846,940 14,177,076
(138,622,762) (138,622,762) (3,264,007) (54,864,961) (1,444,035) (10,929,288)
----------- ------------- ---------- ------------ ---------- ------------
4,407,253 $ 4,407,253 6,657,902 $116,108,965 402,905 $ 3,247,788
=========== ============ ========= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
DOLLAR DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ----------- ---------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6,585,394 $62,046,849 2,029,675 $24,294,769 1,569,886 $19,535,581 159,076,748 $ 159,076,741
907,939 8,491,599 1,969,544 23,337,471 882,536 10,902,257 17,903,470 17,903,477
---------- ----------- ---------- ----------- ---------- ----------- ------------ -------------
7,493,333 70,538,448 3,999,219 47,632,240 2,452,422 30,437,838 176,980,218 176,980,218
(5,176,485) (48,772,584) (3,241,514) (38,929,705) (1,897,253) (23,826,435) (277,399,558) (277,399,558)
---------- ----------- ---------- ----------- ---------- ----------- ------------ -------------
2,316,848 $21,765,864 757,705 $ 8,702,535 555,169 $ 6,611,403 (100,419,340) $(100,419,340)
========== =========== ========== =========== ========== =========== ============ =============
<CAPTION>
DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
1,154,463 $ 21,097,663 4,270,081 $33,052,306
6,022,981 104,451,021 51,252 362,042
---------- ------------ ---------- -----------
7,177,444 125,548,684 4,321,333 33,414,348
(5,632,176) (103,089,686) (3,013,454) (23,296,035)
---------- ------------ ---------- -----------
1,545,268 $ 22,458,998 1,307,879 $10,118,313
========== ============ ========== ===========
</TABLE>
61
<PAGE> 63
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Information (Concluded)
- --------------------------------------------------------------------------------
5. CAPITAL LOSS CARRYFORWARD:
At December 31, 1993, the Fund had capital loss carryforwards of approximately
$3,942,000 in the High Yield Portfolio, of which $3,593,000 expires in 1998, and
$349,000 expires in 1999; $12,060,000 in the Natural Resources Portfolio, of
which $8,359,000 expires in 1996, $2,063,000 expires in 1997, $1,187,000 expires
in 1998, $155,000 expires in 1999, and $296,000 expires in the year 2000. These
will be available to offset like amounts of any future taxable capital gains.
6. COMMITMENTS:
At June 30, 1994, the Global Strategy Portfolio had entered into forward
exchange contracts under which it agreed to purchase various foreign currencies
with values of approximately $1,929,000.
7. LOANED SECURITIES:
At June 30, 1994, the Capital Stock Portfolio held U.S. Treasury Notes having an
aggregate value of approximately $5,060,000 as collateral for portfolio
securities loaned having a market value of approximately $3,860,000; the
Intermediate Government Bond Portfolio held U.S. Treasury Notes having an
aggregate value of approximately $6,227,000 as collateral for portfolio
securities loaned having a market value of approximately $5,996,000; the Long
Term Corporate Bond Portfolio held U.S. Treasury Notes having an aggregate value
of approximately $2,084,000 as collateral for portfolio securities loaned having
a market value of approximately $1,989,000; the Multiple Strategy Portfolio held
U.S. Treasury bonds having an aggregate value of approximately $13,680,000 as
collateral for portfolio securities loaned having a market value of
approximately $11,580,000.
8. SUBSEQUENT EVENT:
On July 1, 1994, the Board of Directors declared dividends and distributions per
share payable on July 13, 1994 to shareholders of record as of July 5, 1994 as
follows:
<TABLE>
<CAPTION>
NET INVESTMENT REALIZED
INCOME CAPITAL GAINS
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
FUND
Balanced Portfolio................................................................. $ 0.283958 $ --
Capital Stock Portfolio............................................................ 0.149226 --
Global Strategy Portfolio.......................................................... 0.217927 --
Growth Stock Portfolio............................................................. 0.124795 --
Multiple Strategy Portfolio........................................................ 0.248762 --
Natural Resources Portfolio........................................................ 0.095505 --
</TABLE>
62
<PAGE> 64
(This page has been left blank intentionally.)
<PAGE> 65
(This page has been left blank intentionally.)
<PAGE> 66
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Directors and Officers
- --------------------------------------------------------------------------------
TERRY K. GLENN-President and Director
JACK B. SUNDERLAND-Director
STEPHEN B. SWENSRUD-Director
J. THOMAS TOUCHTON-Director
BERNARD J. DURNIN-Senior Vice President
DONALD C. BURKE-Vice President
DENIS B. CUMMINGS-Vice President
JAY C. HARBECK-Vice President
JOEL HEYMSFELD-Vice President
PETER A. LEHMAN-Vice President
LAWRENCE FULLER-Vice President
CHRISTOPHER AYOUB-Vice President
ALDONA SCHWARTZ-Vice President
GERALD M. RICHARD-Treasurer
MICHAEL J. HENNEWINKEL-Secretary
PRINCIPAL OFFICE OF THE FUND
Box 9011
Princeton, NJ 08453-9011
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
<PAGE> 67
This report is authorized for distribution only to Policyowners of certain
variable life insurance policies which are funded by shares of the Fund. This
report is not authorized for use as an offer of sale or a solicitation of an
offer to buy shares of the Fund or the policies. Past performance results shown
in this report should not be considered a representation of future performance.
Investment return and principal value of shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. For Money
Reserve Portfolio, the Portfolio seeks to maintain a consistent $1.00 net asset
value per share, although this cannot be assured. An investment in the Portfolio
is neither insured nor guaranteed by the U.S. Government.
MERRILL 59828 Rev 6/94
