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MERRILL LYNCH SERIES FUND, INC.
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SUPPLEMENT DATED MAY 20, 1994 TO PROSPECTUS DATED APRIL 29, 1994
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The Board of Directors of the Fund has removed the limitation on investment
by the Fund's Natural Resources Portfolio in the Republic of South Africa.
Accordingly, the third to last paragraph on page 20 of the Prospectus is deleted
in its entirety.
In addition, the Prospectus is supplemented to revise the first sentence on
page 23 to read as follows:
While no Portfolio may purchase illiquid securities in amounts exceeding
10% of its net assets, each Portfolio may purchase without regard to that
limitation securities that are not registered under the Securities Act of 1933
(the 'Securities Act'), including (a) commercial paper exempt from registration
under Section 4(2) of the Securities Act, and (b) securities that can be offered
and sold to 'qualified institutional buyers' under Rule 144A under the
Securities Act, provided that the Fund's Board of Directors continuously
determines, based on the trading markets for the specified Rule 144A securities,
that it is liquid.
The Prospectus also is supplemented by revising the second paragraph under
'Additional Information -- Determination of Net Asset Value' on page 32 to read
as follows:
Except with respect to securities held by the Money Reserve and Multiple
Strategy Portfolios having a remaining maturity of 60 days or less, securities
held by each Portfolio will be valued as follows: 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 price 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. Securities held by the Money
Reserve and Multiple Strategy Portfolios with a remaining maturity of 60 days or
less are valued on an amortized cost basis, unless particular circumstances
dictate otherwise. Prices of securities held by the Intermediate Government Bond
Portfolio, Long Term Corporate Bond Portfolio and High Yield Portfolio and debt
securities held by other Portfolios of the Fund will be determined by Merrill
Lynch Securities Pricing Service ('MLSPS') pursuant to procedures approved by
the Board of Directors of the Fund. The Board of Directors of the Fund has
examined the methods used by MLSPS in estimating the value of securities held by
the portfolios and believes that such methods will reasonably and fairly
approximate the price at which those securities may be sold and result in a good
faith determination of the fair value of such securities; however, there is no
assurance that securities can be sold at the prices at which they are valued.
During the year ended December 31, 1993, the Fund did not use the pricing
services of MLSPS and therefore made no payment to MLSPS for such services.
Code # 16116ALL
