<PAGE> 1
1993 Annual Report
Merrill Lynch Series Fund, Inc.
The Merrill Lynch Fund of Stripped ("Zero")
U.S. Treasury Securities, Series A, B, C, D, E, F, G, H, I and J
December 31, 1993
<PAGE> 2
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993
================================================================================
DEAR SHAREHOLDER:
We are pleased to submit this 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.
THE ENVIRONMENT
As 1993 drew to a close, the US economy began to show some signs of improvement
with little evidence of an appreciable increase in the rate of inflation.
Interest rate-sensitive sectors of the US economy are expanding, such as capital
goods, consumer durables and residential construction. However, excluding the
interest rate-sensitive sectors, the US economy grew only marginally during
1993. Growth was hampered by declining government spending, a deteriorating
trade balance, and sluggishness in other sectors of the economy. Despite the
areas of economic weakness that persist, concerns arose late in 1993 that the
rate of business activity might increase inflationary pressures which were
reflected in an upturn of long-term interest rates.
Other developments late in the year had significant long-term implications for
the US financial markets. The outline for proposed healthcare reform is very
important for the US economy. As the various healthcare reform proposals are
debated, investors will focus on their potential effects on the Federal budget,
the US economy and the quality of healthcare delivery in the United States. In
addition, the ratification of the North American Free Trade Agreement (NAFTA) by
the US Congress was important not only for the prospect of expanding trade with
Canada and Mexico, but also as a positive influence on the recently concluded
round of negotiations on the General Agreement on Tariffs and Trade (GATT).
Further economic integration and growth through trade liberalization would be
positive for the capital markets in the United States and around the world.
BALANCED PORTFOLIO
For the six-month period ended December 31, 1993, the Balanced Portfolio's total
investment return was +4.40%, based on a change in per share net asset value
from $14.26 to $14.62, and assuming reinvestment of $0.254 per share income
dividends. For the year ended December 31, 1993, the Portfolio's total
investment return was +14.31%, based on a change in per share net asset value
from $13.70 to $14.62, and assuming reinvestment of $0.808 per share income
dividends and $0.123 per share capital gains distributions.*
Stocks and bond investments both contributed to the Portfolio's total return of
+14.31%* for the year ended December 31, 1993. However, the primary positive
contribution of the bonds took place during the first nine months of the year,
with interest rates rising thereafter. The reduction of the Portfolio's bond
weighting during the second half of 1993 from 46% to 38% helped to limit the
impact of bond market erosion on the overall Portfolio. We maintained the equity
weighting near the maximum allowable 50% level throughout the year.
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
1
<PAGE> 3
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
As of December 31, 1993, the Portfolio's asset allocation was: common stocks
(49%), bonds (38%), and cash (13%). The previously mentioned reduction of bond
holdings reflected our belief that the major portion of the interest rate
decline in the United States already had taken place. However, we do not foresee
a dramatic further rise in US interest rates as inflation is likely to remain
subdued. Consequently, we maintain a representation in intermediate-term US
Treasury obligations.
In the equity sector, we accepted profits in Union Pacific Corp. We established
a position in Kelly Services, Inc. as an attractive means of participating in
the temporary employment industry. We remain overweighted in capital spending
and energy equities and underweighted in consumer staples, where the
underperformance of 1993 is likely to persist in 1994.
CAPITAL STOCK PORTFOLIO
For the six-month period ended December 31, 1993, the Capital Stock Portfolio's
total investment return was +12.84%, based on a change in per share net asset
value from $23.00 to $25.73, and assuming reinvestment of $0.194 per share
income dividends. For the year ended December 31, 1993, the Portfolio had a
total investment return of +17.01%, based on a change in per share net asset
value from $23.22 to $25.73, and assuming reinvestment of $0.591 per share
income dividends and $0.642 per share capital gains distributions.*
During the last few months of 1993, the US economic expansion, which began in
early 1991, demonstrated that it is on a firmer footing despite investor
concerns over higher taxes and fiscal drag, both of which are by-products of the
effort to reduce the budget deficit. Rising corporate profits are returning
equity valuations to more realistic levels in relation to earnings. Prospects
for 1994 are bright in response to continuing restructuring and productivity
gains and improved consumer sentiment. Moreover, prospects for exports are
expected to improve following the implementation of NAFTA and GATT.
Although it is likely that the rate of economic growth in the first half of 1994
will decelerate from the recent strong pace, we do not expect a return to
recession even if the Federal Reserve Board raises short-term interest rates. In
this context we have maintained a moderately aggressive posture following the
extended equity market advance, recognizing that we could experience some
consolidation.
Earlier in the year we held our participation in economy-sensitive stocks down,
expecting profit comparisons to fall short of many analysts' estimates. Although
this fear proved well-founded, cyclicals performed relatively well. Our heavy
weighting in telecommunications equipment manufacturers, which performed
unusually well, more than compensated for the less-than-full participation in
the cyclicals. These strategies resulted in Portfolio's +17.01% total return for
the fiscal year.*
GLOBAL STRATEGY PORTFOLIO
For the six-month period ended December 31, 1993, the Global Strategy
Portfolio's total investment return was +10.70%, based on a change in per share
net asset value from $14.13 to $15.42, and assuming reinvestment of $0.200 per
share income dividends. For the year ended December 31, 1993, the Portfolio's
total investment return was +23.73%, based on a change in per share net asset
value
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
2
<PAGE> 4
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
from $13.23 to $15.42, and assuming reinvestment of $0.643 per share ordinary
income dividends and $0.145 per share capital gains distributions.*
The major positive influence on the total return of +23.3%* for the year ended
December 31, 1993 was the performance of emerging equity markets, which were
overweighted in the Portfolio. These markets included Hong Kong, Malaysia and
Singapore in Southeast Asia and Argentina, Brazil and Mexico in Latin America.
The allocation of more than 60% of the Portfolio's assets to equities throughout
the year also benefited the Portfolio, as global equity securities substantially
outperformed fixed-income securities.
As of December 31, 1993, the Portfolio's asset allocation was: US stocks (14%),
foreign stocks (48%), US bonds (13%), foreign bonds (8%), and cash (17%). We
reduced the US bond weighting from 17% to 13% during the second half of 1993
because we believed that the major portion of the decline in US interest rates
had taken place. We took profits in Japanese bonds in response to expectations
that returns to dollar-based investors could be limited by a weakening yen.
In the equity sector, we enlarged the commitment to emerging markets. New
positions included Consorcio G Grupo Dina, S.A. de C.V. and Empressas ICA
Sociedad Controladora S.A. de C.V. in Mexico, Banco Frances del Rio de la Plata
S.A. in Argentina, and Hutchison Whampoa Co. in Hong Kong. We initiated
positions in Thailand, including Bangkok Bank Co., Ltd. and MDX Corp. We
accepted profits in several telecommunications stocks, including Telefonos de
Chile, Telebras, and New Zealand Telecom. We also continued to expand
representation in Japanese equities in anticipation of an improving stock market
environment. The Portfolio remains underweighted in US equities, given our
expectations that the US stock market will continue to lag other equity markets
over the next 6-months - 12-months.
GROWTH STOCK PORTFOLIO
For the six-month period ended December 31, 1993, the Growth Stock Portfolio's
total investment return was +9.30%, based on a change in per share net asset
value from $22.71 to $24.65, and assuming reinvestment of $0.156 per share
income dividends. For the year ended December 31, 1993, the Portfolio's total
investment return was +8.63%, based on a change in per share net asset value
from $23.98 to $24.65, and assuming reinvestment of $0.415 per share income
dividends and $0.865 per share capital gains.*
For most of 1993, investors appeared to focus on industrial and consumer
cyclical companies. The stock prices of many mid-to large-capitalization growth
companies, particularly in the consumer staples and services sectors, declined
in value. The managements of many branded consumer goods companies appeared to
have lost their pricing power as a tool to improve shareholder returns.
Significant changes in the governmental regulation of telecommunications and
broadcast industries, as well as new technology, are creating new growth
opportunities for some companies. Likewise, changes in private sector and
governmental health care policies are changing the opportunities for long-term
corporate growth and profitability in the healthcare industry. The Growth Stock
Portfolio has been restructured with a focus on what we perceive as the emerging
long-term business opportunities for above-average rates of return and growth in
corporate earnings.
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
3
<PAGE> 5
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
The relatively slow growth of economies from Europe to Japan to the United
States continues to produce modest measures of inflation and relatively low
interest rates. This should be a favorable environment for the stock values of
companies where managements produce above-average growth in earnings and rates
of return over the long term.
The positive performance of the Growth Stock Portfolio for the year-ended
December 31, 1993 was largely a result of a significant investment exposure to a
group of large-capitalization growth companies in Mexico and selected
investments in the healthcare, entertainment, telecommunications and computer
software industries.
HIGH YIELD PORTFOLIO
For the six-month period ended December 31, 1993, the High Yield Portfolio's
total investment return was +6.65%, based on a change in per share net asset
value from $9.54 to $9.68, and assuming reinvestment of $0.474 per share income
dividends. For the year ended December 31, 1993, the Portfolio's total
investment return was +18.11%, based on a change in per share net asset value
from $9.10 to $9.68, and assuming reinvestment of $0.982 per share income
dividends.*
Fiscal 1993 was a very good year for high-yield securities. It was a year in
which high-yield bond prices advanced with relative consistency (two minor
corrections in April and September not withstanding), capped by a solid rally
during October. The net result was a +3.46% return for the unmanaged Merrill
Lynch High Yield Master Index for the quarter, bringing the 12-month figure to
+17.8%.
Steady cash inflows into high-yield mutual funds enhanced the receptiveness of
new issues while price gains in selected cyclical securities contributed to a
strong secondary market environment.
Portfolio strategies over the course of the fiscal year ended December 31, 1993
have reflected our viewpoint that high-yield bonds have been attractive. We have
attempted to maintain a fully invested position throughout the period. The
largest contribution to investment returns was from cyclical credits, including
chemicals, paper, transportation, and building-related companies.
Overall, yields have trended to the mean (9.75%) with most of the performance in
lower-quality, higher-yielding issues. Under this scenario, credit selection has
become increasingly important as the spread between higher-quality and
lower-quality issuers continue to tighten. We have focused securities purchases
on new issues generally with five-year call protection.
Cash equivalents at year-end constituted 9.1% of net assets. Major industry
classifications included energy, 11.0%; conglomerates, 6.0%; and industrial
services, 5.2%. Our outlook for the high-yield market continues to be positive,
given attractive valuations, growing economy and improving technical factors.
INTERMEDIATE GOVERNMENT BOND PORTFOLIO
For the six-month period ended December 31, 1993, the Intermediate Government
Bond Portfolio's total investment return was +2.56%, based on a change in per
share net asset value from $12.10 to $12.02, and assuming reinvestment of $0.387
per share income dividends. For the year ended December 31, 1993, the
Portfolio's total investment return was +11.20%, based on a change in per share
net asset
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
4
<PAGE> 6
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
value from $11.75 to $12.02, and measuring reinvestment of $0.803 per share
income dividends, and $0.191 per share capital gains distributions.*
After a disappointing start in the first quarter of 1993, the domestic economy
began to show signs of increasing activity for the balance of the year. This
could be measured in the pattern of increases in GDP from .80% in the first
quarter, to 1.90% in the second quarter, to 2.90% in the third quarter and 5.9%
in the fourth quarter. This decidedly upbeat tone was evidenced by a jump in new
home sales and an increase in automobile sales and durable goods orders. The
lowest mortgage rates in well over a decade encouraged new buyers into the
market as affordability improved. The pent-up demand of buyers who were shut out
of the housing market by rapid price increases in the 1980s helped boost demand.
Auto sales continued to improve, based on many factors, including low interest
rates, improved consumer confidence and the yen-US dollar exchange rate.
The usual expectation is that a pick-up in economic growth is accompanied by a
commensurate increase in the rate of inflation. This expectation led to an
uptick in interest rates the December quarter. Inflation did not keep pace with
economy, however. The underlying rate of inflation was 3.2%, the smallest annual
increase in 20 years. Faster economic growth translates into higher inflation
only when the economy is operating close to potential output, and these
conditions are not currently being met.
During the first six months of 1993, we extended the average maturity of the
Portfolio from 6.4 years to 7.7 years. This enabled us to participate in the
bond rally which occurred during this period. In anticipation of the rise in
interest rates which began in the fourth quarter of 1993, we assumed a more
defensive posture in investment strategy. The average maturity of the portfolio
was reduced from 7.7 years to 7.4 years in the quarter ended December 31, 1993.
Even though yield spreads between Government agency issues and US Treasury
securities were historically tight, we increased the percentage of holdings in
Federal National Mortgage Association and the Federal Home Loan Mortgage
Corporation for the higher yields available.
The unmanaged Merrill Lynch Government, US Treasury Bond Intermediate Index
(G402) showed a return of +12.75% for the year. The Intermediate Government Bond
Portfolio had a return of +11.20% for the same period.
LONG TERM CORPORATE BOND PORTFOLIO
For the six-month period ended December 31, 1993, the Long Term Corporate Bond
Portfolio's total investment return was +3.68%, based on a change in per share
net asset value from $12.55 to $12.59, and assuming reinvestment of $0.484 per
share income dividends. For the year ended December 31, 1993, the Portfolio's
total investment return was +13.01%, based on a change in per share net asset
value from $12.07 to $12.59, and assuming reinvestment of $0.905 per share
income dividends, and $0.088 per share capital gains distributions.*
During the first six months of 1993, we extended the average maturity of the
Portfolio from 10.6 years to 11.5 years. This enabled us to participate in the
bond rally which occurred during this period. In anticipation of the rise in
interest rates which began in the fourth quarter of 1993, we assumed a more
defensive posture in investment strategy. The average maturity of the Portfolio
was reduced from
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
5
<PAGE> 7
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
11.5 years to 10.2 years in the quarter ended December 31, 1993, and the cash
position was built up from 3% to 6%.
We believe that the change in regulations in the electric utility industry will
result in increased competition and difficulty for a number of companies. We
reduced our exposure to this industry as well as to the telephone industry.
Because we believed that the low interest rate environment would help companies
in the banking and brokerage industries, we added to these sectors. We also
increased holdings in dollar-denominated foreign securities and in supranational
issues. The unmanaged Merrill Lynch Corporate Master Bond Index (COAO) showed a
return of +12.42% for the year. The Long Term Corporate Bond Portfolio had a
return of +13.01% for the same period.*
MONEY RESERVE PORTFOLIO
For the six-month period ended December 31, 1993, the Money Reserve Portfolio's
net annualized yield was 3.07%*. For the year ended December 31, 1993, the
Portfolio's net annualized yield was 3.08%**.
As we entered the second half of 1993, economic data portrayed an environment of
modest growth and well-contained inflation. This setting led to interest rates
moving lower during early July and provided an opportunity to reduce the
Portfolio's average maturity by selling longer-term US Treasury securities.
However, by month-end the market's optimistic tone was abruptly interrupted by
negative comments on inflation from Chairman Greenspan at the Humphrey Hawkins
testimony. Looking beyond Chairman Greenspan's comments and focusing on the
economy, we felt that these higher interest rates offered an attractive buying
opportunity for the Portfolio. Therefore, we increased the average portfolio
maturity to the mid 80-day area.
We continued this constructive strategy from August through October. During this
time, the Portfolio remained involved in the 18-month - 24-month sector of the
US Treasury curve given the steepness that the front end offered investors.
Also, the 3-month - 6-month sector of the money market curve proved especially
attractive as a result of pricing pressures that year-end funding requirements
were exerting on the market. Finally, we also found value in one-year
high-quality bank notes where credit spreads were reasonably wide to similar
maturity US Treasury issues.
During November and December, we grew somewhat less optimistic about the overall
direction of interest rates since we doubted the sustainability of a rally
should one materialize. We reduced the Portfolio's average maturity to the high
60-day - low 70-day area. Since it was our contention that the Federal Reserve
Board would not move to tighten money supply, we did not seek to reduce our
longer exposure to the market at the time.
Looking forward, during the early part of 1994 we expect to maintain the
Portfolio's average maturity toward the higher end of our allowed maturity
spectrum given our belief that short-term interest rates will remain within a
narrow trading range. Of course, diversity, liquidity, and credit quality remain
paramount to the Portfolio in the evaluation of future purchases, and we will
continue to closely monitor the shape and structure of the yield curve.
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
** Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
6
<PAGE> 8
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Continued)
================================================================================
MULTIPLE STRATEGY PORTFOLIO
For the six-month period ended December 31, 1993, the Multiple Strategy
Portfolio's total investment return was +10.92%, based on a change in per share
net asset value from $18.17 to $19.84, and assuming reinvestment of $0.279 per
share income dividends. The Portfolio's total investment return for the year
ended December 31, 1993 was +16.66%, based on a change in per share net asset
value from $18.70 to $19.84, and assuming reinvestment of $0.882 per share
income dividends and $0.822 per share capital gains distributions.*
During recent months economic growth has been above trend line, stirring renewed
interest in equities while raising concerns over the possibility of higher
interest rates on a sustained basis. Bond investments, which produced superior
results in the first nine months of 1993, began to lag during the fourth
quarter, reflecting concern that demand for capital could raise interest rates
despite low current and forecast inflation.
Estimates of lower GDP growth in the first half of 1994 compared to the second
half of 1993 (which resulted from consumer spending exceeding household income,
the fiscal drag and the belated impact of higher taxes) should calm the fears of
bond investors even if the Federal Reserve Board deems it appropriate to raise
short-term interest rates further. Nonetheless, we remain of the opinion that
the return on bonds will not exceed the return on equities for a sustained
period during the balance of the present economic expansion.
Accordingly, we have reduced the allocation to fixed-income investments,
especially in the United States. Outside of the United States there is
substantially better potential for interest rate reductions in several economies
which are making progress on the inflation front.
The proliferation of free enterprise outside the United States has created
equity investment opportunities unparalleled in the experience of most current
equity investors. Reduced restrictions on the movement of capital across borders
and reduced trade barriers have created a euphoric atmosphere in which to
conduct business in many underdeveloped markets, especially in Latin America and
the Pacific Rim. The Portfolio has sizable investments in these two areas and
has derived substantial benefit from them during 1993, although most of the
return was achieved in the latter part of the fiscal year. This uneven return is
not uncharacteristic of emerging economies. Patience with these positions
through a period of sub-par returns early in the year was more than amply
rewarded, enabling the Portfolio to achieve a total return of +16.66% in 1993.*
NATURAL RESOURCES PORTFOLIO
For the six-month period ended December 31, 1993, the Natural Resources
Portfolio's total investment return was -3.35%, based on a change in per share
net asset value from $7.85 to $7.53, and assuming reinvestment of $0.059 per
share income dividends. For the year ended December 31, 1993, the Portfolio's
total investment return was +11.65%, based on a change in per share net asset
value from $7.01 to $7.53, and assuming reinvestment of $0.273 per share income
dividends.*
- ---------------
* Complete performance information, including average annual total returns, can
be found on pages 9-18 of this report to shareholders.
7
<PAGE> 9
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993 (Concluded)
================================================================================
The price of most energy shares finally succumbed to declining oil prices
following the November Organization of Petroleum Exporting Countries meeting at
which quotas were left unchanged. The apparent abandonment of a strategy of
controlling prices via production agreements has resulted in the price of
petroleum falling to the $14/barrel area. For the time being and until there is
evidence of a better supply/demand environment for oil, we have reduced the
energy component of the Portfolio to about 40% compared with 65% via sale of a
number of international oil companies as well as oil and gas producers.
With the economy gathering momentum as we enter 1994, our current strategy is to
focus on the industrial side of the business cycle where growing demand is
likely to improve the pricing environment for basic commodities. Therefore, we
have added to the forest products and paper areas as well as aluminum. In
addition, we have established a new position in the steel industry.
Our strategy in 1993 placed major emphasis on the energy sector, which
represented about 65% of portfolio value for most of the year. The absence of
precious metals stocks hindered the total return of the Portfolio in 1993. The
fact that we placed so much emphasis on the energy sector resulted in the
Portfolio's underperforming other funds which emphasized precious metals.
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 June
semi-annual report.
Sincerely,
Terry K. Glenn
President
February 4, 1994
8
<PAGE> 10
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1993
<TABLE>
<CAPTION>
=====================================================================================================================
AVERAGE ANNUAL TOTAL RETURNS
- ---------------------------------------------------------------------------------------------------------------------
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
12/31/93 12/31/93 12/31/93 TO 12/31/93
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO +14.31 % +12.58% -- +12.14% +
- ---------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK PORTFOLIO +17.01 % +15.18% +14.26% --
- ---------------------------------------------------------------------------------------------------------------------
GLOBAL STRATEGY PORTFOLIO +23.73 % +13.33% -- +11.31% ++
- ---------------------------------------------------------------------------------------------------------------------
GROWTH STOCK PORTFOLIO + 8.63 % +11.99% +11.26% --
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO +18.11 % +13.46% -- +12.31% +++
- ---------------------------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND PORTFOLIO +11.20 % +11.21% +10.81% --
- ---------------------------------------------------------------------------------------------------------------------
LONG TERM CORPORATE BOND PORTFOLIO +13.01 % +11.91% +11.91% --
- ---------------------------------------------------------------------------------------------------------------------
MULTIPLE STRATEGY PORTFOLIO +16.66 % +14.31% -- +13.43% ++++
- ---------------------------------------------------------------------------------------------------------------------
NATURAL RESOURCES PORTFOLIO +11.65 % + 6.21% -- -1.85% +++++
- ---------------------------------------------------------------------------------------------------------------------
</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.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT AVERAGE ANNUAL TOTAL RETURNS*
- ---------------------------------------------------------------------------------------------------------------------
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
12/31/93 12/31/93 12/31/93 TO 12/31/93
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO + 4.28 % +10.37% -- +10.06% +
- ---------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK PORTFOLIO + 6.96 % +13.05% +12.59% --
- ---------------------------------------------------------------------------------------------------------------------
GLOBAL STRATEGY PORTFOLIO +13.62 % +10.94% -- + 9.24% ++
- ---------------------------------------------------------------------------------------------------------------------
GROWTH STOCK PORTFOLIO - 1.35 % + 9.66% + 9.37% --
- ---------------------------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO + 8.05 % +10.97% -- +10.44% +++
- ---------------------------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND PORTFOLIO + 1.20 % + 8.88% + 9.23% --
- ---------------------------------------------------------------------------------------------------------------------
LONG TERM CORPORATE BOND PORTFOLIO + 2.99 % + 9.60% +10.36% --
- ---------------------------------------------------------------------------------------------------------------------
MULTIPLE STRATEGY PORTFOLIO + 6.61 % +12.08% -- +11.72% ++++
- ---------------------------------------------------------------------------------------------------------------------
NATURAL RESOURCES PORTFOLIO + 1.64 % + 3.62% -- - 4.57% +++++
- ---------------------------------------------------------------------------------------------------------------------
</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.
9
<PAGE> 11
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Balanced Portfolio
================================================================================
<TABLE>
<CAPTION>
Measurement Period Balanced S&P 500 Weighted
(Fiscal Year Covered) Portfolio*+ Index++ Index+++
<S> <C> <C> <C>
05/02/88** 10,000 10,000 10,000
12/88 10,590 10,882 10,609
12/89 12,788 14,331 12,547
12/90 12,988 13,876 13,122
12/91 15,710 18,102 15,427
12/92 16,757 19,481 16,416
12/93 19,155 21,446 17,748
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
** Commencement of Operations.
+ Balanced Portfolio invests in a balanced portfolio of fixed income and
equity securities.
++ This unmanaged broad-based Index is comprised of common stocks.
+++ This unmanaged Index, which is an equally weighted blend of the Three-Month
Treasury Bill Index, the MLBOAO Index, and the S&P 500 Index, is comprised
of US Treasury Bills maturing in up to 3 months, investment-grade bonds, and
common stocks.
Past performance is not predictive of future performance.
10
<PAGE> 12
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Capital Stock Portfolio
================================================================================
<TABLE>
<CAPTION>
Measurement Period Capital Stock S&P 500
(Fiscal Year Covered) Portfolio*+ Index++
<S> <C> <C>
12/83 10,000 10,000
12/84 11,285 10,639
12/85 13,917 14,038
12/86 16,969 16,670
12/87 16,519 17,544
12/88 18,718 20,505
12/89 24,370 27,003
12/90 24,519 26,147
12/91 31,642 34,109
12/92 32,423 36,708
12/93 37,938 40,412
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
+ Capital Stock Portfolio generally invests in equity securities which are
considered to be of good or improving quality or which are thought to be
price/book value ratios and price/earnings ratios.
++ This unmanaged broad-based Index is comprised of common stocks.
Past performance is not predictive of future performance.
11
<PAGE> 13
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Global Strategy Portfolio
================================================================================
<TABLE>
<CAPTION>
Global Strategy Morgan Stanley Weighted
Measurement Period Portfolio*+ World Index++ Index+++
(Fiscal Year Covered)
<S> <C> <C> <C>
07/01/87** 10,000 10,000 10,000
12/87 9,550 8,957 10,589
12/88 10,744 11,043 11,562
12/89 12,652 12,877 12,660
12/90 13,412 10,686 13,396
12/91 15,760 12,640 15,296
12/92 16,233 11,980 15,358
12/93 20,085 14,676 17,396
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
** Commencement of Operations.
+ Global Strategy Portfolio invests primarily in the securities of issuers
located in the United States, Canada, Western Europe and the Far East.
++ This unmanaged market capitalization-weighted Index is comprised of a
representative sampling of stocks of large-, medium-, and
small-capitalization companies in 22 countries, including the United States.
+++ This unmanaged Index, which is an equally weighted blend of the Morgan
Stanley World Index, the Solomon Brothers World Government Bond Index, and
the Solomon Brothers World Money Market Index, is comprised of a
representative sampling of stocks of large-, medium-, and
small-capitalization companies in 22 countries, government bonds and money
market securities in the major markets, including the United States.
Past performance is not predictive of future performance.
12
<PAGE> 14
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Growth Stock Portfolio
================================================================================
<TABLE>
<CAPTION>
Measurement Period Growth Stock S&P 500
(Fiscal Year Covered) Portfolio*+ Index++
<S> <C> <C>
12/83 10,000 10,000
12/84 10,277 10,639
12/85 13,450 14,038
12/86 15,912 16,670
12/87 14,716 17,544
12/88 16,501 20,505
12/89 20,329 27,003
12/90 17,806 26,147
12/91 25,874 34,109
12/92 26,753 36,708
12/93 29,062 40,412
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
+ Growth Stock Portfolio invests in a diversified portfolio of securities,
primarily common stocks, of aggressive growth companies.
++ This unmanaged broad-based Index is comprised of common stocks.
Past performance is not predictive of future performance.
13
<PAGE> 15
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
High Yield Portfolio
================================================================================
<TABLE>
<CAPTION>
First Boston
Measurement Period High Yield High Yield
(Fiscal Year Covered) Portfolio*+ Index++
<S> <C> <C>
05/01/86** 10,000 10,000
12/86 10,810 10,133
12/87 11,316 10,796
12/88 12,960 12,269
12/89 13,619 12,316
12/90 12,417 11,530
12/91 17,106 16,575
12/92 20,636 19,336
12/93 24,374 22,992
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
** Commencement of Operations.
+ High Yield Portfolio invests principally in fixed-income securities,
including corporate bonds and notes, convertible securities and preferred
stocks, which are rated in the lower rating categories of the established
rating services (Baa or lower by Moody's and BBB or lower by S&P), or in
unrated securities of comparable quality.
++ This unmanaged market-weighted Index of high-yield debt securities is
comprised of 423 securities rated BBB or lower.
Past performance is not predictive of future performance.
14
<PAGE> 16
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Intermediate Government Bond Portfolio
================================================================================
<TABLE>
<CAPTION>
Intermediate
Measurement Period Government ML G402
(Fiscal Year Covered) Bond Portfolio*+ Index++
<S> <C> <C>
12/83 10,000 10,000
12/84 11,329 11,422
12/85 13,431 14,519
12/86 15,285 17,224
12/87 15,515 17,096
12/88 16,408 18,332
12/89 18,617 21,303
12/90 20,289 23,067
12/91 23,447 27,106
12/92 25,096 29,205
12/93 27,907 32,929
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
+ Intermediate Government Bond Portfolio invests only in securities issued or
guaranteed by the US Government and its agencies with a maximum maturity not
to exceed 15 years.
++ This unmanaged Index is comprised of intermediate-term US Government bond and
US Treasury securities maturing in 7-10 years.
Past performance is not predictive of future performance.
15
<PAGE> 17
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Long Term Corporate Bond Portfolio
================================================================================
<TABLE>
<CAPTION>
Long Term
Corporate
Measurement Period Bond ML COAO
(Fiscal Year Covered) Portfolio*+ Index++
<S> <C> <C>
12/83 10,000 10,000
12/84 11,479 11,621
12/85 14,027 14,567
12/86 16,213 16,942
12/87 16,213 17,254
12/88 17,542 18,937
12/89 19,991 21,610
12/90 21,556 23,203
12/91 25,223 27,435
12/92 27,254 29,937
12/93 30,799 33,658
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance=related fees and expenses.
+ Long Term Corporate Bond Portfolio invests at least 80% of the value of its
assets in straight debt securities which have a rating within the three
highest grades as determined by Standard & Poor's (AAA, AA or A) or Moody's
Investors Service (Aaa, Aa or A).
++ This unmanaged Index is comprised of all corporate bonds rated BBB3 or
higher, of all maturities.
Past performance is not predictive of future performance.
16
<PAGE> 18
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Multiple Strategy Portfolio
================================================================================
<TABLE>
<CAPTION>
Multiple
Measurement Period Strategy S&P 500 Weighted
(Fiscal Year Covered) Portfolio*+ Index++ Index+++
<S> <C> <C> <C>
05/02/85** 10,000 10,000 10,000
12/85 11,413 12,091 11,892
12/86 13,764 14,358 13,937
12/87 13,708 15,111 14,448
12/88 15,283 17,661 16,226
12/89 18,541 23,258 19,944
12/90 19,451 22,521 20,474
12/91 24,501 29,379 25,220
12/92 25,567 31,617 27,149
12/93 29,827 34,807 30,022
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
** Commencement of Operations.
+ Multiple Strategy Portfolio, which uses a fully managed investment policy,
invests in equity, intermediate-and long-term debt and money market
securities.
++ This unmanaged broad-based Index is comprised of common stocks.
+++ This unmanaged Index, which is an equally weighted blend of the S&P 500
Index and the MLBOAO Index, is comprised of common stocks as well as
investment-grade bonds.
Past performance is not predictive of future performance.
17
<PAGE> 19
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Natural Resources Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Natural Lipper Natural
Measurement Period Resources S&P Industrials Resources Consumer
(Fiscal Year Covered) Portfolio*+ Index++ Average++++ Price Index+++
<S> <C> <C> <C> <C>
07/01/87** 10,000 10,000 10,000 10,000
12/87 7,460 8,208 7,935 10,170
12/88 6,552 9,520 8,636 10,617
12/89 8,206 12,322 11,427 11,053
12/90 7,698 12,209 10,445 11,727
12/91 7,827 15,977 10,750 12,091
12/92 7,933 16,902 10,959 12,477
12/93 8,857 18,438 13,473 12,789
</TABLE>
* Assuming transaction costs and other operating expenses, including advisory
fees. Does not include insurance-related fees and expenses.
** Commencement of Operations.
+ Natural Resources Portfolio invests primarily in a portfolio of equity
securities (e.g., common stocks and securities convertible into common
stocks) of domestic and foreign companies with substantial natural resource
assets.
++ This unmanaged Index measures the pattern of movements of the common stocks
of 400 large industrial companies and their weighting by capitalization.
+++ This unmanaged Index is the most widely used index of price changes over
time and is designed to measure changes in the typical market basket of
purchases by urban consumers.
++++ This unmanaged Index is comprised of all US mutual funds classified as
natural resource-related funds.
Past performance is not predictive of future performance.
18
<PAGE> 20
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
VALUE PERCENT OF
FACE AMOUNT ISSUE COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT OBLIGATIONS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
US TREASURY NOTES US Treasury Notes:
$ 1,500,000 6.375% due 1/15/2000................... $ 1,532,578 $ 1,576,395 1.8%
1,500,000 8.50% due 2/15/2000.................... 1,476,094 1,743,270 2.0
2,700,000 5.50% due 4/15/2000.................... 2,723,125 2,723,598 3.1
3,000,000 7.75% due 2/15/2001.................... 3,027,187 3,414,360 3.9
6,000,000 8.00% due 5/15/2001.................... 5,948,125 6,866,220 7.8
1,000,000 7.875% due 8/15/2001................... 1,020,156 1,138,430 1.3
6,250,000 6.375% due 8/15/2002................... 6,178,128 6,519,500 7.4
8,200,000 6.25% due 2/15/2003.................... 8,397,250 8,471,584 9.6
1,000,000 5.75% due 8/15/2003.................... 1,024,688 996,870 1.1
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT OBLIGATIONS 31,327,331 33,450,227 38.0
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRY SHARES COMMON STOCKS
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE 25,000 United Technologies Corp............... 1,228,233 1,550,000 1.8
- --------------------------------------------------------------------------------------------------------------------------------
AIRLINES 24,500 +AMR Corp.............................. 1,649,285 1,641,500 1.9
- --------------------------------------------------------------------------------------------------------------------------------
AIR TRANSPORT 28,000 Gannett Co., Inc....................... 1,239,100 1,603,000 1.8
- --------------------------------------------------------------------------------------------------------------------------------
ALUMINUM 21,500 Aluminum Co. of America................ 1,406,173 1,491,562 1.7
- --------------------------------------------------------------------------------------------------------------------------------
BANKING 19,500 Morgan (J.P.) & Co..................... 1,129,059 1,352,813 1.5
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS 47,000 Nalco Chemical Co...................... 1,364,040 1,762,500 2.0
- --------------------------------------------------------------------------------------------------------------------------------
DRUGS 26,000 Bristol-Myers Squibb Co................ 1,596,780 1,511,250 1.7
- --------------------------------------------------------------------------------------------------------------------------------
FOODS 66,224 Archer-Daniels-Midland Co.............. 1,508,705 1,506,596 1.7
- --------------------------------------------------------------------------------------------------------------------------------
HARDWARE PRODUCTS 34,000 Stanley Works Co....................... 1,340,289 1,513,000 1.7
- --------------------------------------------------------------------------------------------------------------------------------
HOSPITAL MANAGEMENT 118,000 Humana Inc............................. 896,963 2,079,750 2.4
- --------------------------------------------------------------------------------------------------------------------------------
MACHINERY 39,000 Ingersoll-Rand Co...................... 1,008,480 1,491,750 1.7
63,000 Keystone International, Inc............ 1,591,910 1,724,625 2.0
57,000 Morrison Knudsen Corp.................. 1,256,435 1,432,125 1.6
------------ ------------ --------
3,856,825 4,648,500 5.3
- --------------------------------------------------------------------------------------------------------------------------------
MERCHANDISING 35,400 May Department Stores Co............... 910,188 1,393,875 1.6
- --------------------------------------------------------------------------------------------------------------------------------
MERCHANDISING SERVICES 55,000 Kelly Services, Inc.................... 1,450,000 1,519,375 1.7
- --------------------------------------------------------------------------------------------------------------------------------
NATURAL GAS 27,100 Consolidated Natural Gas Co............ 1,151,047 1,273,700 1.4
- --------------------------------------------------------------------------------------------------------------------------------
OFFICE RELATED 20,000 Hewlett-Packard Co..................... 1,014,002 1,580,000 1.8
38,000 Pitney Bowes, Inc...................... 1,177,148 1,572,250 1.8
------------ ------------ --------
2,191,150 3,152,250 3.6
- --------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 50,000 Phillips Petroleum Co.................. 1,411,292 1,450,000 1.7
- --------------------------------------------------------------------------------------------------------------------------------
PETROLEUM & EQUIPMENT 84,500 Dresser Industries, Inc................ 1,709,838 1,753,375 2.0
SERVICE
- --------------------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 25,000 Eastman Kodak Co....................... 1,084,396 1,400,000 1.6
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL STORES 68,000 K mart Corp............................ 1,456,710 1,445,000 1.6
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 21
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD COMMON STOCKS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEMICONDUCTOR 60,000+ Teradyne, Inc.......................... $ 884,297 $ 1,665,000 1.9%
PRODUCTION EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------------------
SMALLER CAPITAL 98,256 Wheelabrator Technologies Inc.......... 1,459,510 1,744,044 2.0
- ----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 25,700 American Telephone & Telegraph Co.
(AT&T)................................ 1,020,834 1,349,250 1.5
22,600 Bell Atlantic Corp..................... 1,071,067 1,333,400 1.5
46,000 Comsat Corp............................ 1,196,495 1,368,500 1.6
------------ ------------ --------
3,288,396 4,051,150 4.6
- ----------------------------------------------------------------------------------------------------------------------------
UTILITIES 82,000 California Energy Co. Inc.............. 1,403,585 1,517,000 1.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 35,615,861 43,025,240 48.9
- ----------------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SHORT-TERM SECURITIES
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER* $ 1,000,000 CSW Credit, Inc., 3.25% due
2/15/1994............................. 995,847 995,847 1.1
3,000,000 Ciesco L.P., 3.35% due 1/10/1994....... 2,997,208 2,997,208 3.4
1,000,000 Corporate Asset Funding Co., 3.22% due
2/01/1994............................. 997,138 997,138 1.1
3,117,000 General Electric Capital Corp., 3.22%
due 1/03/1994......................... 3,116,164 3,116,164 3.6
1,500,000 Matterhorn Capital Corp., 3.29% due
1/12/1994............................. 1,498,355 1,498,355 1.7
1,000,000 PHH Corp., 3.25% due 1/26/1994......... 997,653 997,653 1.1
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 10,602,365 10,602,365 12.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS...................... $ 77,545,557 87,077,832 98.9
------------
------------
OTHER ASSETS LESS LIABILITIES.......... 940,512 1.1
------------ --------
NET ASSETS............................. $ 88,018,344 100.0%
------------ --------
------------ --------
- ----------------------------------------------------------------------------------------------------------------------------
</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.
20
<PAGE> 22
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1A) NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AEROSPACE 75,000 AlliedSignal, Inc................... $ 4,734,837 $ 5,925,000 2.6%
- ---------------------------------------------------------------------------------------------------------------------------
APPAREL 65,000 Phillips-Van Heusen Corp............ 1,489,750 2,437,500 1.1
- ---------------------------------------------------------------------------------------------------------------------------
APPLIANCES 200,000 Singer Company N.V.................. 5,586,479 7,475,000 3.3
273,000 Sunbeam-Oster....................... 5,537,622 6,006,000 2.7
------------- ------------- --------
11,124,101 13,481,000 6.0
- ---------------------------------------------------------------------------------------------------------------------------
AUTOMOBILE 120,000 Ford Motor Co....................... 6,534,735 7,740,000 3.4
- ---------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 50,000 Magna International, Inc. (Class
A)................................. 2,191,880 2,487,500 1.1
- ---------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE & EQUIPMENT 100,000 Cooper Tire & Rubber Co............. 935,397 2,500,000 1.1
- ---------------------------------------------------------------------------------------------------------------------------
BANKING 130,000 Bank of New York, Inc............... 5,504,008 7,410,000 3.3
- ---------------------------------------------------------------------------------------------------------------------------
BEVERAGES 4,800 Panamerican Beverages Inc........... 122,400 183,600 0.1
30,000 PepsiCo Inc......................... 1,192,689 1,226,250 0.5
------------- ------------- --------
1,315,089 1,409,850 0.6
- ---------------------------------------------------------------------------------------------------------------------------
CHEMICALS 45,000 PPG Industries, Inc................. 3,287,880 3,414,375 1.5
60,000 Rohm and Haas....................... 3,295,998 3,570,000 1.6
------------- ------------- --------
6,583,878 6,984,375 3.1
- ---------------------------------------------------------------------------------------------------------------------------
COMMUNICATION 125,000 ADC Telecommunications Inc.......... 3,267,290 4,453,125 2.0
EQUIPMENT 3,600 Antec Corp.......................... 64,800 88,200 0.1
75,000 DSC Communications Corp............. 3,846,110 4,607,812 2.1
25,000 Motorola, Inc....................... 1,873,675 2,309,375 1.0
25,000 Picturetel Corp..................... 472,500 465,625 0.2
75,000 Tellabs, Inc........................ 2,414,821 3,525,000 1.6
------------- ------------- --------
11,939,196 15,449,137 7.0
- ---------------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 65,000 Computer Sciences Corp.............. 5,182,801 6,467,500 2.9
180,000 General Motors Corp................. 5,323,174 5,265,000 2.4
------------- ------------- --------
10,505,975 11,732,500 5.3
- ---------------------------------------------------------------------------------------------------------------------------
COMPUTER TECHNOLOGY 86,800 +Solectron Corp...................... 1,733,997 2,462,950 1.1
- ---------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 50,000 Emerson Electric Co................. 2,779,085 3,012,500 1.3
- ---------------------------------------------------------------------------------------------------------------------------
ENGINEERING & 95,000 Thermo Electron..................... 3,847,918 3,990,000 1.8
CONSTRUCTION
- ---------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 375,000 +Wheelabrator Technologies Inc. (New
Shares)............................ 4,884,183 6,656,250 3.0
- ---------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS 90,000 Willamette Industries, Inc.......... 3,053,900 4,477,500 2.0
- ---------------------------------------------------------------------------------------------------------------------------
HEALTH CARE 41,500 +Vivra Inc........................... 748,072 959,688 0.4
- ---------------------------------------------------------------------------------------------------------------------------
HEALTH CARE- 35,000 Johnson & Johnson Co................ 1,398,078 1,566,250 0.7
PRODUCTS & SERVICES
- ---------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 50,000 The Procter & Gamble Co............. 2,767,528 2,850,000 1.3
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE> 23
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1A) NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INSURANCE 12,000 America International Group Inc..... $ 1,061,447 $ 1,053,000 0.5%
30,000 Capital Holding Corp................ 1,158,858 1,113,750 0.5
------------- ------------- --------
2,220,305 2,166,750 1.0
- ---------------------------------------------------------------------------------------------------------------------------
MEDIA/PUBLISHING 100,000 News Corp. Ltd (ADR)*............... 5,300,530 5,275,000 2.4
- ---------------------------------------------------------------------------------------------------------------------------
MEDICAL 75,000 Humana Inc.......................... 1,285,625 1,321,875 0.6
100,000 Physician Corp...................... 1,815,953 2,487,500 1.1
------------- ------------- --------
3,101,578 3,809,375 1.7
- ---------------------------------------------------------------------------------------------------------------------------
MERCHANDISING 70,000 Heilig-Meyers Co.................... 1,007,066 2,730,000 1.2
- ---------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 120,000 Danka Business Systems PLC (ADR)*... 2,690,173 4,747,500 2.1
- ---------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 40,000 Chevron Corp........................ 3,515,131 3,485,000 1.6
10,000 Mobil Corp.......................... 787,480 790,000 0.3
------------- ------------- --------
4,302,611 4,275,000 1.9
- ---------------------------------------------------------------------------------------------------------------------------
PAPER & PACKAGING 132,000 +Crown Cork & Seal Co., Inc.......... 2,054,169 5,527,500 2.5
15,000 Union Camp Corp..................... 715,680 714,375 0.3
------------- ------------- --------
2,769,849 6,241,875 2.8
- ---------------------------------------------------------------------------------------------------------------------------
PETROLEUM-DOMESTIC 125,000 Phillips Petroleum Co............... 3,587,975 3,625,000 1.6
- ---------------------------------------------------------------------------------------------------------------------------
PUBLISHING 50,000 Gannett Co.......................... 2,440,207 2,862,500 1.3
- ---------------------------------------------------------------------------------------------------------------------------
SERVICES 25,000 Block (H&R), Inc.................... 964,250 1,018,750 0.5
- ---------------------------------------------------------------------------------------------------------------------------
SMALL CAPITAL 40,000 Bandag, Inc. (Class A).............. 1,895,894 2,070,000 0.9
60,000 Kelly Services, Inc. (Class A)
(Non-Voting)....................... 1,618,899 1,657,500 0.8
------------- ------------- --------
3,514,793 3,727,500 1.7
- ---------------------------------------------------------------------------------------------------------------------------
SOFTWARE-COMPUTERS 30,000 Microsoft Corp...................... 2,505,671 2,418,750 1.1
- ---------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 25,000 ALC Communications Inc.............. 706,200 718,750 0.3
112,140 LDDS Communication Inc.............. 4,930,759 5,438,790 2.4
265,000 MCI Communications, Corp............ 7,486,412 7,469,688 3.3
30,000 Sprint Corp......................... 1,112,100 1,042,500 0.5
------------- ------------- --------
14,235,471 14,669,728 6.5
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 24
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1A) NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
UTILITIES-ELECTRIC 175,000 California Energy Co., Inc............. $ 3,376,640 $ 3,237,500 1.4 %
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US COMMON STOCKS 136,088,726 164,337,228 73.4
- ---------------------------------------------------------------------------------------------------------------------------
COUNTRY FOREIGN STOCKS & WARRANTS++
- ---------------------------------------------------------------------------------------------------------------------------
ARGENTINA 16,100 +Banco de Galicia y Buenos Aires S.A.
(ADR)* (2)............................ 304,500 647,019 0.3
25,000 +Banco Frances del Rio de la Plata S.A.
(ADR)* (2)............................ 763,707 984,375 0.4
275,000 Telecom Argentina S.A.
(ADR)* (11)........................... 1,324,293 1,730,461 0.8
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ARGENTINA 2,392,500 3,361,855 1.5
- ---------------------------------------------------------------------------------------------------------------------------
CANADA 25,000 Hudson Bay Co. ORD (10)................ 751,800 745,846 0.3
100,000 International Semi-Tech
Microelectronics, Inc.
(Receipts) (4)**...................... 656,627 566,465 0.3
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 1,408,427 1,312,311 0.6
- ---------------------------------------------------------------------------------------------------------------------------
CHILE 28,400 ++Distribuidora Chilectra Metropolitana
S.A. (ADR)* (13)...................... 794,176 1,166,104 0.5
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHILE 794,176 1,166,104 0.5
- ---------------------------------------------------------------------------------------------------------------------------
FRANCE 1,608 +Compagnie Generale des Eaux (4)........ 600,783 794,621 0.4
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 600,783 794,621 0.4
- ---------------------------------------------------------------------------------------------------------------------------
GERMANY 1,000 Mannesmann AG (6)...................... 171,644 243,026 0.1
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN GERMANY 171,644 243,026 0.1
- ---------------------------------------------------------------------------------------------------------------------------
HONG KONG 20,000 Cheung Kong Holdings Ltd. (9).......... 72,054 122,362 0.1
512,911 Dairy Farm International
Holdings (5).......................... 885,802 1,022,767 0.4
159,729 HSBC Holdings PLC (2).................. 1,083,117 2,378,458 1.1
125,000 Henderson Land Development
Co. (9)............................... 394,975 922,569 0.4
500,000 Hong Kong Land Holdings Ltd. (9)....... 972,798 1,773,922 0.8
475,000 Hutchison Whampoa, Ltd. (7)............ 1,012,865 2,367,927 1.0
700,000 Johnson Electric Holdings Ltd. (13).... 1,320,382 1,794,639 0.8
200,000 Swire Pacific Ltd. (Class A) (10)...... 745,404 1,799,819 0.8
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 6,487,397 12,182,463 5.4
- ---------------------------------------------------------------------------------------------------------------------------
MEXICO 75,000 Consorcio G Grupo Dina, S.A. de C.V.
(ADR)* (1)............................ 1,187,843 2,090,625 1.0
120,000 Empresas ICA Sociedad Controladora,
S.A. de C.V. (ADR)* (11).............. 2,440,842 3,390,000 1.5
60,000 +Grupo Financiero Serfin, S.A. de C.V.
(ADR)* (2)............................ 1,496,021 1,770,000 0.8
80,000 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)* (11).................. 3,350,303 5,400,000 2.4
50,000 Transportacion Maritima de Mexico, S.A.
de C.V. (ADR)* (12)................... 402,500 512,500 0.2
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MEXICO 8,877,509 13,163,125 5.9
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 25
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NETHERLANDS 25,000 Royal Dutch Petroleum Co. N.V.
(ADR)* (8)............................ $ 2,079,228 $ 2,609,375 1.2%
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE NETHERLANDS 2,079,228 2,609,375 1.2
- ----------------------------------------------------------------------------------------------------------------------------
PORTUGAL 75,000 Banco Comercial Portugues
(ADR)* (2)............................ 1,016,030 1,143,750 0.5
40,000 Espirito Santo Financial Holdings S.A.
(ADR)* (2)............................ 1,152,154 1,410,000 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN PORTUGAL 2,168,184 2,553,750 1.1
- ----------------------------------------------------------------------------------------------------------------------------
SPAIN 25,000 Repsol S.A. (ADR)* (8)................. 639,292 777,700 0.3
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SPAIN 639,292 777,700 0.3
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 10,000 British Petroleum PLC (ADR)* (8)....... 566,562 640,000 0.3
268,187 British Petroleum PLC (8).............. 1,291,041 1,426,969 0.6
125,000 Huntingdon International Holdings PLC
(ADR)* (9)............................ 2,753,657 1,140,625 0.5
50,000 Reuters Holdings PLC (ADR)* (3)........ 2,644,375 3,950,000 1.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE UNITED
KINGDOM 7,255,635 7,157,594 3.2
- ----------------------------------------------------------------------------------------------------------------------------
VENEZUELA 195,000 ++Siderurgica Venezolana SIVENSA,
S.A.I.C.A.-S.A.C.A. (ADR)*
(Warrants) (a)(1)..................... 487,750 27,300 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN VENEZUELA 487,750 27,300 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 33,362,525 45,349,224 20.2
- ----------------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT FOREIGN BONDS
- ----------------------------------------------------------------------------------------------------------------------------
NETHERLANDS $ 2,740,000 Aegon Corp., 7.00% due
9/15/2001 (Non-Convertible)........... 3,522,612 4,055,200 1.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 3,522,612 4,055,200 1.8
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE> 26
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT SHORT-TERM SECURITIES*** COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
US GOVERNMENT $ 3,250,000 Federal Farm Credit Bank, 3.18% due
AGENCY OBLIGATIONS 1/06/1994............................. $ 3,248,278 $ 3,248,278 1.5%
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 8,336,000 General Electric Capital Corp., 3.22%
due 1/03/1994......................... 8,333,763 8,333,763 3.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 11,582,041 11,582,041 5.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS...................... $184,555,904 225,323,693 100.6
------------
------------
LIABILITIES IN EXCESS OF OTHER ASSETS.. (1,352,814) (0.6)
------------ -----
NET ASSETS............................. $223,970,879 100.0%
------------ -----
------------ -----
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 and US Government Obligations are 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 security as to resale. The value of the Portfolio's investments
in restricted securities was approximately $1,193,000, representing 0.53% of
net assets.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
ISSUE ACQUISITION DATE COST (NOTE A)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Distribuidora Chilectra Metropolitana S.A. (ADR)......................... 2/12/1992 $ 794,176 $1,166,104
Siderurgica Venezolana SIVENSA, S.A.I.C.A.-S.A.C.A. (ADR) (Warrants)..... 2/13/1992 487,750 27,300
- -------------------------------------------------------------------------------------------------------------------------
TOTAL $1,281,926 $1,193,404
---------- ----------
---------- ----------
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
++ Corresponding industry groups for foreign stocks and warrants:
(1) Automotive & Equipment
(2) Banking
(3) Business Services
(4) Consumer Electronics
(5) Foods/Food Processing
(6) Machinery
(7) Multi-Industry
(8) Petroleum--International
(9) Real Estate
(10) Retail
(11) Telecommunications
(12) Transportation
(13) Utilities--Electric
See Notes to Financial Statements.
25
<PAGE> 27
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AEROSPACE 15,600 United Technologies Corp.............. $ 803,052 $ 967,200 0.5%
- ----------------------------------------------------------------------------------------------------------------------------
AIRLINES 13,400 +AMR Corp.............................. 890,505 897,800 0.5
- ----------------------------------------------------------------------------------------------------------------------------
ALUMINUM 14,200 Aluminum Co. of America............... 980,819 985,125 0.5
- ----------------------------------------------------------------------------------------------------------------------------
BANKING 13,300 Morgan (J.P.) & Co. .................. 862,286 922,688 0.5
- ----------------------------------------------------------------------------------------------------------------------------
BUILDING RELATED 20,500 Stanley Works Co...................... 813,343 912,250 0.5
- ----------------------------------------------------------------------------------------------------------------------------
BUILDING SERVICES 40,000 Kelly Services, Inc. (Class A)........ 1,102,500 1,105,000 0.6
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS 29,000 Nalco Chemical Co..................... 882,114 1,087,500 0.6
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER TECHNOLOGY 12,100 Hewlett-Packard Co.................... 664,392 955,900 0.5
- ----------------------------------------------------------------------------------------------------------------------------
FOOD 41,171 Archer-Daniels-Midland Co............. 881,550 936,640 0.5
- ----------------------------------------------------------------------------------------------------------------------------
HOSPITAL SUPPLIES 32,000 Abbott Laboratories................... 895,745 944,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
MACHINERY 22,600 Ingersoll-Rand Co..................... 648,250 864,450 0.5
33,000 Morrison Knudsen Corp................. 788,863 829,125 0.4
------------ ------------ --------
1,437,113 1,693,575 0.9
- ----------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS 40,000 Keystone International, Inc........... 1,011,146 1,095,000 0.6
- ----------------------------------------------------------------------------------------------------------------------------
OFFICE RELATED 21,500 Pitney Bowes, Inc..................... 759,945 889,563 0.5
- ----------------------------------------------------------------------------------------------------------------------------
OIL SERVICES 53,000 Dresser Industries, Inc............... 1,115,155 1,099,750 0.6
19,000 Schlumberger Ltd...................... 1,166,038 1,123,375 0.6
------------ ------------ --------
2,281,193 2,223,125 1.2
- ----------------------------------------------------------------------------------------------------------------------------
PETROLEUM 36,500 Phillips Petroleum Co. ............... 1,049,930 1,058,500 0.6
- ----------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 17,100 Bristol-Myers Squibb Co............... 1,021,328 993,938 0.6
- ----------------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHIC 15,000 Eastman Kodak Co...................... 685,070 840,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 17,000 Gannett Co., Inc. 756,541 973,250 0.5
- ----------------------------------------------------------------------------------------------------------------------------
RETAIL STORES 39,000 K mart Corp........................... 874,995 828,750 0.5
20,000 May Department Stores Co.............. 630,085 787,500 0.4
------------ ------------ --------
1,505,080 1,616,250 0.9
- ----------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR 38,000 +Teradyne Inc.......................... 615,480 1,054,500 0.6
PRODUCTION EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 17,000 American Telephone & Telegraph Co..... 761,814 892,500 0.5
29,000 Comsat Corp........................... 552,524 862,750 0.5
15,000 Bell Atlantic Corp.................... 793,645 885,000 0.5
------------ ------------ --------
2,107,983 2,640,250 1.5
- ----------------------------------------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC 47,000 +California Energy Co., Inc............ 818,708 869,500 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 22,825,823 25,661,554 14.1
- ----------------------------------------------------------------------------------------------------------------------------
COUNTRY FOREIGN STOCKS & WARRANTS
- ----------------------------------------------------------------------------------------------------------------------------
ARGENTINA 33,350 +Banco de Galicia y Buenos Aires S.A.
(ADR)* (2)........................... 651,825 1,340,253 0.7
40,000 +Banco Frances del Rio de la Plata S.A.
(ADR)* (3)........................... 1,203,476 1,575,000 0.9
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ARGENTINA 1,855,301 2,915,253 1.6
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE> 28
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 275,000 C.S.R. Ltd. Ord. (27).................. $ 800,378 $ 910,815 0.5%
120,000 National Australia Bank Ltd. (2)....... 812,521 1,003,390 0.6
258,500 Pacific Dunlop, Ltd. (27).............. 862,539 947,397 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AUSTRALIA 2,475,438 2,861,602 1.6
- ----------------------------------------------------------------------------------------------------------------------------
BRAZIL 89,000 +Aracruz Celulose S.A. (ADR)* (16)...... 958,752 1,168,125 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN BRAZIL 958,752 1,168,125 0.6
- ----------------------------------------------------------------------------------------------------------------------------
CANADA 59,000 Canadian Pacific Ltd. (27)............. 955,145 958,750 0.5
27,000 Imperial Oil (29)...................... 990,623 912,576 0.5
38,000 Northern Telecommunications Ltd. (38).. 1,073,547 1,173,250 0.6
80,000 Thomson Corp. (25)..................... 987,083 981,873 0.6
50,000 Westcoast Energy, Inc. (28)............ 803,167 825,000 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 4,809,565 4,851,449 2.7
- ----------------------------------------------------------------------------------------------------------------------------
FRANCE 6,300 Alcatel Alsthom (7).................... 736,054 896,805 0.5
9,500 Compagnie de Saint Gobain (18)......... 900,246 944,379 0.5
2,400 +Compagnie Generale des Eaux (44)....... 1,045,190 1,186,002 0.7
17,033 +Schneider S.A. (12)++.................. 1,055,353 1,269,916 0.7
4,833 +Schneider S.A. (Warrants) (a) (12)..... 40,087 61,444 0.0
17,000 TOTAL S.A. (b) (31).................... 728,152 927,456 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 4,505,082 5,286,002 2.9
- ----------------------------------------------------------------------------------------------------------------------------
GERMANY 4,300 +Mannesmann AG (22)..................... 776,273 1,045,010 0.6
3,400 Preussag S.A. (27)..................... 806,935 846,822 0.5
2,900 RWE AG (Rheinisch Westfalisches) (42).. 721,339 892,436 0.5
2,500 Siemens AG (13)........................ 1,024,176 1,146,822 0.6
6,800 Thyssen AG (23)........................ 829,859 1,077,596 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN GERMANY 4,158,582 5,008,686 2.8
- ----------------------------------------------------------------------------------------------------------------------------
HONG KONG 156,000 China Light & Power Co., Ltd. (42)..... 540,623 1,141,266 0.6
200,000 Hutchison Whampoa Ltd. (10)............ 651,402 997,022 0.6
140,000 Swire Pacific, Ltd. (Class A) (27)..... 590,507 1,259,873 0.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 1,782,532 3,398,161 1.9
- ----------------------------------------------------------------------------------------------------------------------------
ITALY 230,000 +Danieli & Co. (22)..................... 853,812 776,843 0.4
250,000 Italcementi S.p.A. (8)................. 861,665 896,759 0.5
625,000 Societa Finanziaria Telefonica (38).... 1,120,456 1,263,529 0.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ITALY 2,835,933 2,937,131 1.6
- ----------------------------------------------------------------------------------------------------------------------------
JAPAN 89,000 Asahi Glass Co., Ltd. (5).............. 1,015,095 844,886 0.5
24,000 +Bandai Co., Ltd. (39).................. 789,252 904,890 0.5
66,000 Canon, Inc. (13)....................... 795,416 910,263 0.5
57,000 Dai Nippon Printing Co., Ltd. (34)..... 810,694 811,660 0.4
58,000 Daiwa House Industries, Ltd. (19)...... 804,954 779,151 0.4
50,000 Fuji Photo Film Co., Ltd. (33)......... 1,191,261 1,106,036 0.6
130,000 Hitachi Cable, Ltd. (7)................ 838,588 840,588 0.5
19,000 +Ito-Yokado Co., Ltd. (36).............. 723,123 867,813 0.5
83,000 +Kamigumi Co. (40)...................... 992,472 877,127 0.5
54,000 Kandenko Co., Ltd. (4)................. 1,132,730 1,034,927 0.6
42,000 Kansai Electric Power Co. (43)......... 1,202,213 1,053,197 0.6
90,000 Maeda Corp. (4)........................ 833,400 806,018 0.4
200,000 Makino Milling Machine Co. (26)........ 1,276,986 931,399 0.5
69,000 Makita Electric Works, Ltd. (13)....... 1,116,229 1,204,997 0.7
</TABLE>
27
<PAGE> 29
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JAPAN (CONCLUDED) 180,000 Mitsubishi Heavy Industry, Ltd. (7).... $ 1,018,102 $ 991,402 0.5%
17,000 Nintendo Ltd. (11)..................... 1,422,356 1,093,140 0.6
156,000 Nippon Fire and Marine Insurance Co.,
Ltd. (21).............................. 1,030,025 1,004,514 0.5
161,000 Nippon Oil Co., Ltd. (31).............. 1,066,171 942,988 0.5
149,000 Okumura Corp. (4)...................... 1,124,458 1,151,594 0.6
95,000 Sekisui Chemical Co. Ltd. (9).......... 957,332 850,797 0.5
60,000 Sharp Corp. (13)....................... 846,334 816,765 0.4
42,000 +Shikoku Electric Power Co. (42)........ 1,054,169 1,008,060 0.6
37,000 Tokyo Electric Power Co., Inc. (42).... 1,078,823 1,020,598 0.6
69,000 Tokyo Style Co. (1).................... 1,104,055 994,895 0.5
48,000 Toto Ltd. (20)......................... 928,643 786,674 0.4
34,000 +Toyo Seikan Kaisha Corp. (24).......... 1,000,885 852,588 0.5
42,000 +Yamazaki Baking Ltd. (15).............. 719,202 808,705 0.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN JAPAN 26,872,968 25,295,672 13.8
- ----------------------------------------------------------------------------------------------------------------------------
MALAYSIA 390,000 Sime Darby BHD (11).................... 797,834 1,093,593 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MALAYSIA 797,834 1,093,593 0.6
- ----------------------------------------------------------------------------------------------------------------------------
MEXICO 42,000 Cementos Mexicanos, S.A. de C.V.
(Series B) (8)......................... 466,351 1,252,560 0.7
356,666 +Cifra, S.A. de C.V. (36)............... 411,688 1,070,572 0.6
37,000 Consorcio G Groupo Dina S.A. de
C.V. (41).............................. 626,607 1,031,375 0.6
40,000 Empresas ICA Sociedad Controladora
S.A. de C.V. (38)...................... 881,022 1,130,000 0.6
16,250 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)* (38)................... 578,346 1,096,875 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MEXICO 2,964,014 5,581,382 3.1
- ----------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 22,306 ABN Amro Holdings N.V. (2)............. 557,801 821,341 0.4
8,400 Royal Dutch Petroleum Co., N.V.
(ADR)* (31)............................ 690,288 876,750 0.5
13,000 Ver Ner Utigevers (34)................. 725,489 1,162,890 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE NETHERLANDS 1,973,578 2,860,981 1.5
- ----------------------------------------------------------------------------------------------------------------------------
NORWAY 60,937 Hafslund Nycomed, Inc. (Class B) (32).. 1,231,758 1,019,284 0.6
22,500 Kvaerner, Inc. (Class B) (7)........... 742,138 1,090,232 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN NORWAY 1,973,896 2,109,516 1.2
- ----------------------------------------------------------------------------------------------------------------------------
PORTUGAL 73,800 Banco Comercial Portuges (ADR)* (2).... 958,590 1,125,450 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN PORTUGAL 958,590 1,125,450 0.6
- ----------------------------------------------------------------------------------------------------------------------------
SINGAPORE 97,000 Jurong Shipyard Ltd. (4)............... 578,773 874,689 0.5
810,000 Neptune Orient Lines Ltd. (37)......... 829,336 1,496,082 0.8
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SINGAPORE 1,408,109 2,370,771 1.3
- ----------------------------------------------------------------------------------------------------------------------------
SPAIN 36,000 Repsol S.A. (ADR)* (31)................ 935,136 1,111,500 0.6
29,000 Telefonica Nacional de Espana S.A.
(ADR)* (38)............................ 992,515 1,131,000 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SPAIN 1,927,651 2,242,500 1.2
- ----------------------------------------------------------------------------------------------------------------------------
SWEDEN 60,000 SKF AB 'B' Free (26)................... 744,828 970,804 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWEDEN 744,828 970,804 0.5
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE> 30
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SWITZERLAND 1,350 BBC Brown Boveri & Cie (26)............ $ 826,395 $ 985,613 0.5%
1,800 Holderbank Financiere Glarus AG (8).... 761,471 1,125,378 0.6
230 Roche Holdings, Ltd. (32).............. 519,178 975,664 0.5
1,800 Sulzer Gebrueder AG (22)............... 837,656 1,020,101 0.6
800 +Sulzer Gebrueder AG
(Warrants) (a) (22).................... 0 4,303 0.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWITZERLAND 2,944,700 4,111,059 2.2
- ----------------------------------------------------------------------------------------------------------------------------
THAILAND 90,000 Bangkok Bank Co. Ltd. (2).............. 696,775 888,367 0.5
120,000 M.D.X. Corp. (35)...................... 686,720 958,872 0.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THAILAND 1,383,495 1,847,239 1.0
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 99,000 Allied Lyons PLC (15).................. 939,688 997,184 0.5
177,000 British Gas PLC (28)................... 848,593 892,077 0.5
15,000 British Petroleum PLC (ADR)* (31)...... 804,800 960,000 0.5
130,000 British Telecommunications PLC (38).... 817,080 906,901 0.5
180,000 General Electric PLC (13).............. 806,276 907,196 0.5
114,000 GKN PLC (6)............................ 765,352 889,638 0.5
32,000 Grand Metropolitan PLC (ADR)* (14)..... 880,512 884,000 0.5
225,000 Hanson PLC (27)........................ 876,603 891,234 0.5
420,000 Hillsdown Holdings PLC (27)............ 1,051,087 974,593 0.5
88,000 Imperial Chemical Industries PLC (30).. 1,137,770 1,039,211 0.6
370,000 Lucas Industries PLC (6)............... 827,415 1,049,971 0.6
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE
UNITED KINGDOM 9,755,176 10,392,005 5.7
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 77,086,024 88,427,381 48.4
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE> 31
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
COUNTRY AMOUNT** FOREIGN BONDS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA A$ 2,390,000 Queensland Treasury Corp.,
8.00% due 7/14/1999 (17)............. $ 1,744,262 $ 1,736,580 1.0%
1,500,000 Queensland Treasury, Corp.
8.00% due 5/13/2003 (17)............. 1,089,326 1,094,990 0.6
----------- ----------- ------
2,833,588 2,831,570 1.6
- ----------------------------------------------------------------------------------------------------------------------------
CANADA C$ 5,900,000 Government of Canada,
7.25% due 6/01/2003 (17)............. 4,607,624 4,668,607 2.5
- ----------------------------------------------------------------------------------------------------------------------------
FRANCE Frf 1,000,000 French Government "OAT", STRIPS****
8.125% due 5/25/1999 (17)............ 198,164 192,297 0.1
7,000,000 French Government "OAT", STRIPS****
8.50% due 4/25/2003 (17)............. 1,366,012 1,423,818 0.8
------------ ------------ ----------
1,564,176 1,616,115 0.9
- ----------------------------------------------------------------------------------------------------------------------------
ITALY Lit 1,500,000,000 Buoni Poliennali del Tesoro,
12.00% due 1/01/1998 (17)............ 984,249 975,137 0.5
1,500,000,000 Buoni Poliennali del Tesoro,
10.00% due 8/01/1998 (17)............ 994,518 929,050 0.5
------------ ------------ ----------
1,978,767 1,904,187 1.0
- ----------------------------------------------------------------------------------------------------------------------------
SWEDEN Skr 9,500,000 Government of Sweden,
10.75% due 1/23/1997 (17)............ 1,318,796 1,277,768 0.7
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM L 1,200,000 UK Treasury Gilt,
7.25% due 3/30/1998 (17)............. 1,911,258 1,885,282 1.1
350,000 UK Treasury Gilt, 9.75% due
8/27/2002 (17)....................... 697,240 637,734 0.3
------------ ------------ ----------
2,608,498 2,523,016 1.4
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 14,911,449 14,821,263 8.1
- ----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY
OBLIGATIONS
- ---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL $ 110,488 Government National Mortgage
MORTGAGE ASSOCIATION Association, 9.00% due
8/15/2016 (c)..................... 109,418 118,188 0.1
- ---------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT US Treasury Notes:
OBLIGATIONS 6,600,000 5.50% due 4/15/2000............. 6,674,961 6,657,750 3.7
1,000,000 8.00% due 5/15/2001............. 984,375 1,143,906 0.6
2,000,000 7.875% due 8/15/2001............ 2,042,656 2,276,876 1.3
1,950,000 7.50% due 11/15/2001............ 1,979,055 2,175,773 1.2
1,200,000 7.50% due 5/15/2002............. 1,291,344 1,342,876 0.7
1,250,000 6.375% due 8/15/2002............ 1,248,633 1,303,711 0.7
4,600,000 6.25% due 2/15/2003............. 4,724,250 4,752,375 2.6
3,000,000 5.75% due 8/15/2003............. 3,058,906 2,990,157 1.6
------------ ------------- ----------
22,004,180 22,643,424 12.4
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS 22,113,598 22,761,612 12.5
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE> 32
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT** SHORT-TERM SECURITIES COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER*** $ 4,000,000 Ciesco L.P., 3.35%
due 1/10/1994..................... $ 3,996,650 $ 3,996,650 2.2%
2,000,000 Corporate Asset Funding Co., Inc.,
3.22% due 2/01/1994............... 1,994,454 1,994,454 1.1
5,000,000 CSW Credit, 3.25%
due 2/15/1994..................... 4,979,688 4,979,688 2.7
6,525,000 General Electric Capital Corp.,
3.22%
due 1/03/1994..................... 6,523,833 6,523,833 3.6
2,000,000 Hertz Funding Corp., 3.30% due
1/14/1994......................... 1,997,617 1,997,617 1.1
5,000,000 Matterhorn Capital Corp., 3.27%
due 1/18/1994..................... 4,992,279 4,992,279 2.7
3,000,000 Penney, (J.C.) Funding Corp., 3.18%
due 2/09/1994..................... 2,989,665 2,989,665 1.6
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 27,474,186 27,474,186 15.0
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS.................. $ 164,411,080 179,145,996 98.1
-------------
-------------
OTHER ASSETS LESS LIABILITIES...... 3,526,048 1.9
------------- -----
NET ASSETS......................... $ 182,672,044 100.0%
------------- -----
------------- -----
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Non-income producing security.
++ Restricted securities as to resale. The value of the Portfolio's investment
in restricted securities was approximately $1,269,000, representing 0.7% of
net assets.
<TABLE>
<CAPTION>
VALUE
ISSUE ACQUISITION DATE COST (NOTE 1A)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Schneider S.A............................................................ 3/30/93 $1,055,353 $1,269,916
- ----------------------------------------------------------------------------------------------------------------------
TOTAL $1,055,353 $1,269,916
---------- ----------
---------- ----------
- ----------------------------------------------------------------------------------------------------------------------
</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.
**** The interest rate shown represents the yield-to-maturity on this zero
coupon issue.
(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) Formerly TOTAL Compagnie Francaise de Petroles.
(c) Mortgage-backed bonds; original face amounts and related costs are reduced
by principal payment pass-throughs.
Corresponding industry groups for foreign stocks and bonds:
(1) Apparel
(2) Banking
(3) Banking-International
(4) Building & Construction
(5) Building Materials
(6) Business Services
(7) Capital Goods
(8) Cement
(9) Chemicals
(10) Conglomerates
(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 and Gas Producers
(30) Oil Integrated
(31) Petroleum
(32) Pharmaceutical
(33) Photography
(34) Printing & Publishing
(35) Real Estate
(36) Retail Stores
(37) Shipping
(38) Telecommunications
(39) Toys
(40) Trading
(41) Trucking
(42) Utilities
(43) Utilities-Electric
(44) Utilities-Water
See Notes to Financial Statements.
31
<PAGE> 33
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
FACE AMOUNT/ VALUE PERCENT OF
INDUSTRY SHARES HELD STOCKS, WARRANTS AND BONDS COST (NOTE 1A) NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
APPAREL 60,000 Deckers Outdoor Corp.............. $ 1,291,625 $ 1,102,500 0.9%
- -------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 175,000 Consorcio G Groupo Dina S.A. de
C.V. (ADR)+...................... 3,449,925 4,878,125 4.0
50,000 Ek Chor China Motorcycle Co.,
Ltd.............................. 1,110,762 1,812,500 1.5
------------- ------------- --------
4,560,687 6,690,625 5.5
- -------------------------------------------------------------------------------------------------------------------------
BANKING 40,000 State Street Boston Corp.......... 1,403,750 1,495,000 1.2
- -------------------------------------------------------------------------------------------------------------------------
BEVERAGES 40,000 Coca-Cola Co...................... 1,722,600 1,785,000 1.4
65,000 Coca-Cola FEMSA S.A. (ADR)+....... 1,552,797 2,128,750 1.7
50,000 Panamerican Beverages, Inc. Class
A................................ 1,385,495 1,912,500 1.6
30,000 PepsiCo, Inc...................... 1,085,550 1,226,250 1.0
------------- ------------- --------
5,746,442 7,052,500 5.7
- -------------------------------------------------------------------------------------------------------------------------
BROADCAST-MEDIA 110,000 *Grupo Televisa, S.A. de C.V.
(ADR)+ (Series L)................ 2,949,443 4,184,702 3.4
50,000 Infinity Broadcasting Corp. (Class
A)............................... 1,446,875 1,512,500 1.2
60,000 Turner Broadcasting System, Inc.
(Class B)........................ 1,575,805 1,620,000 1.3
------------- ------------- --------
5,972,123 7,317,202 5.9
- -------------------------------------------------------------------------------------------------------------------------
BROADCASTING-CABLE 75,000 Tele-Communications Inc. (Class
A)............................... 1,843,750 2,264,063 1.8
30,000 Time Warner Inc................... 1,331,718 1,327,500 1.1
------------- ------------- --------
3,175,468 3,591,563 2.9
- -------------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES 40,000 Olsten Corp....................... 1,083,212 1,175,000 1.0
- -------------------------------------------------------------------------------------------------------------------------
CHEMICAL 40,000 Duracell International, Inc....... 1,437,426 1,435,000 1.2
PRODUCERS 20,000 Great Lakes Chemical Corp......... 1,430,913 1,492,500 1.2
------------- ------------- --------
2,868,339 2,927,500 2.4
- -------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS 30,000 cisco Systems, Inc................ 1,473,750 1,938,750 1.6
- -------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS 70,000 CUC International, Inc............
AND SERVICES 2,498,786 2,520,000 2.1
- -------------------------------------------------------------------------------------------------------------------------
COSMETICS 35,000 Avon Products, Inc................ 1,887,725 1,701,875 1.4
15,000 International Flavors &
Fragrances, Inc.................. 1,577,950 1,706,250 1.4
15,000 Gillette Co....................... 942,300 894,375 0.7
------------- ------------- --------
4,407,975 4,302,500 3.5
- -------------------------------------------------------------------------------------------------------------------------
ELECTRONICS 30,000 Intel Corp........................ 1,835,000 1,863,750 1.5
- -------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT 60,000 Electronic Arts, Inc.............. 1,967,084 1,807,500 1.5
35,000 Media Vision, Inc................. 1,015,000 1,540,000 1.2
$1,000,000 Media Vision, Inc., 4.875%
due 10/01/2003................... 1,000,000 1,408,750 1.2
------------- ------------- --------
3,982,084 4,756,250 3.9
- -------------------------------------------------------------------------------------------------------------------------
FINANCE 60,000 Countrywide Credit Industries,
Inc.............................. 1,731,476 1,507,500 1.2
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE> 34
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
FACE AMOUNT/ VALUE PERCENT OF
INDUSTRY SHARES HELD STOCKS, WARRANTS AND BONDS COST (NOTE 1A) NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES 50,000 Federal National Mortgage
Association...................... $ 3,921,700 $ 3,925,000 3.2%
82,000 MGIC Investment Corp.............. 1,720,475 2,398,500 2.0
80,000 Primerica Corp.................... 3,397,967 3,110,000 2.5
------------- ------------- --------
9,040,142 9,433,500 7.7
- -------------------------------------------------------------------------------------------------------------------------
FOODS 30,000 Kellogg Co........................ 1,670,275 1,702,500 1.4
- -------------------------------------------------------------------------------------------------------------------------
HEALTHCARE- 60,000 IVAX Corp......................... 1,625,937 1,725,000 1.4
PHARMACEUTICALS 50,000 Teva Pharmaceutial Industries Ltd.
(ADR)+........................... 1,461,250 1,515,625 1.3
40,000 Watson Pharmaceuticals, Inc....... 1,171,800 1,005,000 0.8
------------- ------------- --------
4,258,987 4,245,625 3.5
- -------------------------------------------------------------------------------------------------------------------------
HEALTH SERVICES 150,000 Caremark International, Inc....... 2,574,400 2,943,750 2.4
80,000 Novacare, Inc..................... 1,220,175 1,220,000 1.0
------------- ------------- --------
3,794,575 4,163,750 3.4
- -------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 30,000 Colgate-Palmolive Co.............. 1,753,976 1,871,250 1.5
- -----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES 50,000 Cintas Corp....................... 1,383,499 1,687,500 1.4
- -------------------------------------------------------------------------------------------------------------------------
INFORMATION 30,000 First Financial Management Corp... 1,610,555 1,702,500 1.4
PROCESSING
- -------------------------------------------------------------------------------------------------------------------------
INSURANCE 20,000 American International Group, Inc.. 1,871,300 1,755,000 1.4
15,000 General Re Corp................... 1,808,337 1,605,000 1.3
300,000 Reliance Group Holdings, Inc...... 2,390,000 2,400,000 2.0
40,000 UNUM Corp......................... 2,026,334 2,100,000 1.7
------------- ------------- --------
8,095,971 7,860,000 6.4
- -------------------------------------------------------------------------------------------------------------------------
LEISURE 50,000 PolyGram N.V. (ADR)+.............. 1,703,100 1,968,750 1.6
- -------------------------------------------------------------------------------------------------------------------------
MARKETING 25,000 Catalina Marketing Corp........... 1,026,375 1,250,000 1.0
- -------------------------------------------------------------------------------------------------------------------------
MEDICAL TECHNOLOGY 40,000 Haemonetics Corp.................. 1,091,168 1,110,000 0.9
- -------------------------------------------------------------------------------------------------------------------------
OIL SERVICES 30,000 Schlumberger Ltd., Inc............ 1,790,385 1,773,750 1.4
- -------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL 40,000 WMX Technologies, Inc............. 1,147,400 1,055,000 0.9
- -------------------------------------------------------------------------------------------------------------------------
PUBLISHING 40,000 Scholastic Corp................... 1,805,000 1,725,000 1.4
- -------------------------------------------------------------------------------------------------------------------------
RESTAURANTS 20,000 McDonald's Corp................... 1,163,700 1,140,000 0.9
- -------------------------------------------------------------------------------------------------------------------------
RETAIL-SPECIALTY 40,000 Pep Boys-Manny, Moe & Jack........ 941,988 1,050,000 0.9
30,000 Staples Inc....................... 615,000 761,250 0.6
------------- ------------- --------
1,556,988 1,811,250 1.5
- -------------------------------------------------------------------------------------------------------------------------
RETAIL-STORES Mxp 1,000,000 *Cifra, S.A. de C.V. .............. 2,296,856 3,001,610 2.4
- -------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS 20,000 Texas Instruments, Inc. .......... 1,458,275 1,270,000 1.0
- -------------------------------------------------------------------------------------------------------------------------
SOFTWARE-COMPUTER 60,000 Computer Associates International
Inc. ............................ 2,140,992 2,400,000 2.0
60,000 Oracle Systems, Inc. ............. 1,775,834 1,728,750 1.4
------------- ------------- --------
3,916,826 4,128,750 3.4
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE> 35
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS, WARRANTS AND BONDS COST (NOTE 1A) NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TELECOMMUNICATIONS 80,000 ALC Communications Corp............. $ 2,117,100 $ 2,300,000 1.9%
40,000 Bell Atlantic Corp.................. 2,607,400 2,360,000 1.9
40,000 BroadBand Technologies, Inc......... 1,600,625 1,250,000 1.0
50,000 MCI Communications Corp............. 1,400,500 1,409,375 1.2
20,000 QUALCOMM Inc........................ 1,573,750 1,065,000 0.8
30,000 Vodafone Group PLC (ADR)+........... 2,484,440 2,677,500 2.2
------------- ------------- --------
11,783,815 11,061,875 9.0
- ----------------------------------------------------------------------------------------------------------------------------
TOYS 50,000 Mattel, Inc......................... 1,397,250 1,381,250 1.1
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKS, WARRANTS AND BONDS 105,775,835 113,584,500 92.5
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT SHORT-TERM SECURITIES
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT $3,000,000 Federal Home Loan Bank,
AGENCY OBLIGATIONS** 3.17% due 1/18/1994................ 2,995,245 2,995,245 2.4
5,000,000 Federal National Mortgage
Association, 3.16% due 1/10/1994... 4,995,611 4,995,611 4.1
------------- ------------- --------
7,990,856 7,990,856 6.5
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER** 2,441,000 General Electric Capital Corp.,
3.22%
due 1/03/1994...................... 2,440,345 2,440,345 2.0
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 10,431,201 10,431,201 8.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS................... $ 116,207,036 124,015,701 101.0
=============
LIABILITIES IN EXCESS OF OTHER
ASSETS............................. (1,179,413) (1.0)
------------- --------
NET ASSETS.......................... $ 122,836,288 100.0%
============= ========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Foreign Stocks.
** 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 purchase by the Portfolio.
+ American Depositary Receipt (ADR).
See Notes to Financial Statements.
34
<PAGE> 36
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AIRLINES-3.1% BB+ Baa3 $ 750,000 Delta Air Lines, Inc., 9.30% due
1/02/2010......................... $ 740,775 $ 749,361
BB+ Baa1 1,000,000 United Air Lines, Inc., 9.21% due
1/21/2017......................... 1,016,820 1,008,530
USAir, Inc.:
B+ Ba3 450,000 10.00% due 7/01/2003................ 450,000 432,000
BB+ Ba2 750,000 10.375% due 3/01/2013............... 750,000 750,722
------------ ------------
2,957,595 2,940,613
- -----------------------------------------------------------------------------------------------------------------------------
AUTOMOBILES-0.9% B B2 750,000 Exide Corp., 10.75% due
12/15/2002........................ 777,188 821,250
- -----------------------------------------------------------------------------------------------------------------------------
BROADCASTING & BB- Ba3 750,000 Heritage Media Services Inc., 11.00%
PUBLISHING-2.0% due 6/15/2002..................... 796,875 830,625
B+ BB- 500,000 Sinclair Broadcasting Group, Inc.,
10.00% due 12/15/2003............. 500,000 513,750
BB- B1 500,000 World Color Press Inc., 9.125% due
3/15/2003......................... 500,000 518,750
------------ ------------
1,796,875 1,863,125
- -----------------------------------------------------------------------------------------------------------------------------
BUILDING & B+ BA3 1,000,000 U.S. Home Corp., 9.75% due
CONSTRUCTION-1.1% 6/15/2003......................... 1,000,000 1,032,500
- -----------------------------------------------------------------------------------------------------------------------------
BUILDING B+ B1 750,000 National Gypsum Co., 10.00% due
MATERIALS-1.6% 7/01/2003......................... 752,813 761,250
B+ B3 750,000 Pacific Lumber Co., 10.50% due
3/01/2003......................... 752,813 778,125
------------ ------------
1,505,626 1,539,375
- -----------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS-2.0% B Ba3 1,000,000 Inter-City Products Corp., 9.75% due
3/01/2000......................... 963,750 1,002,500
B- B3 1,000,000 USG Corp., 8.75% due 3/01/2017...... 908,750 925,000
------------ ------------
1,872,500 1,927,500
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS-0.5% B+ B1 500,000 Essex Group, Inc., 10.00% due
5/01/2003......................... 500,000 504,375
- -----------------------------------------------------------------------------------------------------------------------------
CELLULAR B- B3 750,000 Dial Page, Inc., 12.25% due
TELEPHONES-1.5% 2/15/2000......................... 751,500 836,250
NR NR 1,000,000 ++Page Mart, Inc., 12.25%* due
11/01/2003 (with warrants)(c)..... 556,288 600,000
------------ ------------
1,307,788 1,436,250
- -----------------------------------------------------------------------------------------------------------------------------
CHEMICALS-3.6% B B2 750,000 Agricultural Minerals & Chemical
Co., L.P., 10.75% due 9/30/2003... 750,000 791,250
B+ Ba3 1,717,000 G-I Holdings Inc., 11.15%* due
10/01/1998........................ 1,026,228 1,102,099
B B3 500,000 Harris Chemical Corp., 10.75% due
10/15/2003........................ 500,000 528,750
B- B3 1,750,000 ++Indspec Chemical Corp., 11.50%* due
12/01/2003........................ 1,005,309 1,023,750
------------ ------------
3,281,537 3,445,849
- -----------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS- B- B3 780,000 Panamsat L.P., 11.38%* due
0.6% 8/01/2003......................... 459,240 522,600
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE> 37
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONGLOMERATES-6.0% B Caa $ 500,000 Collins & Aikman Group, Inc., 7.50%*
due 1/31/2005..................... $ 432,321 $ 493,125
B+ B1 1,000,000 Foamex Capital Corp., 11.25% due
10/01/2002........................ 989,062 1,095,000
NR NR 1,000,000 Gillette Holdings Inc., 12.25% due
6/30/2002......................... 1,027,500 1,095,000
B- B3 500,000 Interlake Corp., 12.125% due
3/01/2002......................... 500,000 506,250
B+ B3 950,000 Jordan Industries Inc., 10.375% due
8/01/2003......................... 950,000 969,000
NR NR 1,000,000 MacAndrew & Forbes Group, Inc.,
13.00% due 3/01/1999.............. 995,000 1,006,250
BB- Ba3 500,000 Sherritt Gordon, Ltd., 9.75% due
4/01/2003......................... 498,750 505,000
------------ ------------
5,392,633 5,669,625
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS-4.8% NR NR 1,250,000 ++Coleman Holdings Inc., 11.09%* due
5/27/1998......................... 778,440 809,375
++Formica Corp.:
NR NR 750,000 15.75%* due 10/01/2001.............. 673,711 708,750
NR NR 1,000,000 13.125% due 9/15/2005............... 1,003,750 1,015,625
NR NR 1,000,000 Liggett Group., Inc., 11.50% due
2/01/1999......................... 975,000 740,000
B- B3 1,550,000 Revlon Worldwide Corp., 14.84%* due
3/15/1998......................... 936,637 798,250
B+ B1 450,000 Sealy Corp., 9.50% due 5/01/2003.... 453,000 471,375
------------ ------------
4,820,538 4,543,375
- -----------------------------------------------------------------------------------------------------------------------------
CONTAINERS-4.3% B B2 750,000 Anchor Glass Container Co., 9.875%
due 12/15/2008.................... 750,000 768,750
B- B3 500,000 IVEX Packaging Corp., 12.50% due
12/15/2002........................ 496,495 545,000
B B 1,500,000 Silgan Holdings, Inc., 13.25%* due
6/15/1996......................... 1,140,453 1,162,500
B+ B1 750,000 Stone Container Corp., 10.25% due
12/15/2000........................ 753,750 757,500
B+ Ba3 750,000 Sweetheart Cup Co., 9.625% due
9/01/2000......................... 750,000 791,250
------------ ------------
3,890,698 4,025,000
- -----------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE B- B1 500,000 Employee Benefit Plans Inc., 6.75%
BONDS+-1.9% due 7/31/2006 (2)................. 365.000 360,625
B B 2,100,000 Farm Fresh, Inc., 7.50% due
3/01/2010 (1)..................... 1,093,875 1,396,500
------------ ------------
1,458,875 1,757,125
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY-11.0% B+ B1 2,000,000 Clark Oil & Refining Corp., 11.00%*
due 2/15/2000..................... 1,039,580 1,102,500
CC Caa 440,000 Empire Gas Corp., 12.00% due
3/31/2002......................... 273,900 442,200
CC Caa 280,000 Empire, Inc., 9.00% due
12/31/2007........................ 142,725 245,000
B B2 1,000,000 Ferrellgas Inc., 11.625% due
12/15/2003........................ 1,035,000 1,088,750
B+ B1 750,000 Global Marine Inc., 12.75% due
12/15/1999........................ 750,000 836,250
</TABLE>
36
<PAGE> 38
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ENERGY BB B1 $ 850,000 Gulf Canada Resources, Ltd., 9.00%
(CONCLUDED) due 8/15/1999....................... $ 789,281 $ 843,996
C Caa 849,000 National Propane Corp., 13.125% due
3/01/1999......................... 660,815 844,755
BB1 Ba3 1,000,000 Noble Drilling Corp., 9.25% due
10/01/2003........................ 1,000,000 1,035,000
BB- Ba2 750,000 Rowan Companies, Inc., 11.875% due
12/01/2001........................ 772,500 838,125
BB- Ba3 750,000 Seagull Energy Corp., 8.625% due
8/01/2005......................... 751,875 750,000
CCC+ Caa 750,000 Tesoro Petroleum Corp., 12.75% due
3/15/2001......................... 564,375 750,938
B+ B1 1,125,000 Triton Energy Corp., 9.68% due
11/01/1997........................ 782,521 787,500
B+ B1 750,000 Western Co. of North America,
12.875% due 12/01/2002............ 731,258 892,500
------------ ------------
9,293,830 10,457,514
- -----------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT-5.5% B- B3 1,375,000 AMC Entertainment, Inc., 12.625% due
8/01/2002......................... 1,396,102 1,570,938
B+ B1 750,000 Cinemark USA, Inc., 12.00% due
6/01/2002......................... 750,000 840,000
CCC+ B3 1,000,000 Fair Lanes, Inc., 11.875% due
8/15/1997......................... 1,000,000 705,000
B B3 1,700,000 Marvel Holdings, Inc., 11.761%* due
4/15/1998......................... 1,048,173 1,117,750
NR Caa 1,000,000 New World Pictures Inc., 12.25%* due
9/15/1998......................... 972,000 1,015,000
------------ ------------
5,166,275 5,248,688
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL CCC+ B2 750,000 Pioneer Finance Corp., 13.50% due
SERVICES-2.7% 12/01/1998........................ 792,187 791,250
BBB+ NR 1,000,000 Reliance Financial Services Corp.,
9.273% due 11/01/2000............. 812,630 1,015,000
B- B2 750,000 Reliance Group Holdings Inc., 9.75%
due 11/15/2003.................... 750,000 774,375
------------ ------------
2,354,817 2,580,625
- -----------------------------------------------------------------------------------------------------------------------------
FOOD & BB- Ba3 1,000,000 Del Monte Corp., 10.00% due
BEVERAGE-4.7% 5/01/2003......................... 976,250 990,000
B+ B2 1,000,000 Grand Union Co., 12.25% due
7/15/2002......................... 1,000,000 1,052,500
B- Ba3 750,000 P&C Food Markets, Inc., 11.50% due
10/15/2001........................ 780,469 839,062
B B2 500,000 Penn Traffic Co., 9.625% due
4/15/2005......................... 495,635 521,250
B B2 1,000,000 Speciality Foods Corp., 10.25% due
8/15/2001......................... 1,000,312 1,047,500
------------ ------------
4,252,666 4,450,312
- -----------------------------------------------------------------------------------------------------------------------------
HEALTH SERVICES-3.5% B- B1 750,000 Abbey Healthcare Group Inc., 9.50%
due 11/01/2002.................... 750,000 769,688
B+ B1 750,000 Continental Medical Systems Inc.,
10.875% due 8/15/2002............. 753,750 778,125
B+ B1 1,000,000 MEDIQ/PRN Life Support Services,
Inc., 11.125% due 7/01/1999....... 1,002,500 1,055,000
</TABLE>
37
<PAGE> 39
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HEALTH SERVICES B- B3 $ 605,000 The Multicare Companies Inc., 12.50%
(CONCLUDED) due 7/01/2002..................... $ 589,393 $ 680,625
------------ ------------
3,095,643 3,283,438
- -----------------------------------------------------------------------------------------------------------------------------
HIGH TECHNOLOGY-0.9% B- B3 1,000,000 ComputerVision Corp., 11.375% due
8/15/1999......................... 995,000 860,000
- -----------------------------------------------------------------------------------------------------------------------------
HOTELS & B B2 1,000,000 Aztar Corp., 11.00% due
10/01/2002........................ 1,016,250 1,020,000
CASINOS-5.0% NR NR 635,000 Goldriver Hotel & Casino Corp.,
11.375% due 8/31/1999............. 790,072 517,525
BB- Ba3 750,000 Showboat Inc., 9.25% due
5/01/2008......................... 755,625 768,750
NR Caa 582,000 Trump Castle Funding, Inc., 9.50%
due 8/15/1998 (a)................. 414,526 482,696
B B3 1,000,000 Trump Plaza Funding, Inc., 10.875%
due 6/15/2001..................... 993,777 1,005,000
NR Caa 1,019,000 Trump Taj Mahal Funding, Inc.,
11.35% due 11/15/1999 (a)......... 823,338 957,945
------------ ------------
4,793,588 4,751,916
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL BB- B2 650,000 ADT Operations, 9.25% due
SERVICES-5.2% 8/01/2003......................... 650,000 669,500
B- B3 1,500,000 Bell & Howell Co., 10.75% due
10/01/2002........................ 1,522,500 1,646,250
B+ B2 450,000 Blount, Inc., 9.00% due 6/15/2003... 450,000 466,875
C Caa 878,000 Southeastern Public Service Co.,
11.875% due 2/01/1998............. 653,324 899,950
NR Caa 1,185,648 Thermadyne Industries, Inc., 15.00%
due 5/01/1999 (a)................. 1,180,438 1,239,166
------------ ------------
4,456,262 4,921,741
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-3.5% B B2 1,000,000 Coca Cola Bottling Co., Inc., 9.00%
due 11/15/2003.................... 1,000,000 1,002,500
BB Ba3 750,000 Methanex Corp., 8.875% due
11/15/2001........................ 744,735 776,250
B+ B2 1,500,000 Navistar Financial Co., 8.875% due
11/15/1998........................ 1,500,000 1,518,750
------------ ------------
3,244,735 3,297,500
- -----------------------------------------------------------------------------------------------------------------------------
METAL & MINING-1.1% B- B3 1,750,000 Maxxam Group, Inc., 12.25%* due
8/01/2003......................... 990,230 1,001,875
- -----------------------------------------------------------------------------------------------------------------------------
PAPER-2.5% B B3 500,000 Gaylord Container Corp., 11.50% due
5/15/2001......................... 500,000 535,000
B+ B1 750,000 Riverwood International, Corp.,
11.25% due 6/15/2002.............. 750,000 821,250
B B1 1,000,000 Stone Container Corp., 11.875% due
12/01/1998........................ 997,500 1,017,500
------------ ------------
2,247,500 2,373,750
- -----------------------------------------------------------------------------------------------------------------------------
PAPER & B- Caa 1,250,000 Ivex Holdings Inc., 11.33%* due
PACKAGING-0.7% 3/15/2005......................... 631,347 631,250
- -----------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL-0.7% B B1 683,000 International Technology Corp.,
9.375% due 7/01/1996.............. 614,700 686,415
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE> 40
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
INDUSTRY RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (CONCLUDED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RAILROADS-0.8% B+ Ba3 $ 750,000 Southern Pacific Rail Co., 9.375%
due 8/15/2005..................... $ 750,000 $ 802,500
- -----------------------------------------------------------------------------------------------------------------------------
RESTAURANTS-1.6% B- B2 750,000 Flagstar Corp., 11.375% due
9/15/2003......................... 750,000 776,250
B B2 750,000 Foodmaker, Inc., 9.75%
due 6/01/2002..................... 738,750 763,125
------------ ------------
1,488,750 1,539,375
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL-3.7% B- B3 1,000,000 Bradlees, Inc., 11.00% due
8/01/2002......................... 1,023,750 1,078,750
B- B3 1,500,000 Pamida Holdings, Inc., 11.75% due
3/15/2003......................... 1,506,563 1,533,750
B- B3 900,000 Specialty Retail Services Inc.,
11.00% due 8/15/2003.............. 900,000 927,000
------------ ------------
3,430,313 3,539,500
- -----------------------------------------------------------------------------------------------------------------------------
TEXTILES-1.1% B+ B3 1,000,000 Westpoint Stevens Industries, 9.375%
due 12/15/2005.................... 1,000,000 1,013,750
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-1.1% B+ B3 1,000,000 Viking Star Shipping Co., 9.625% due
7/15/2003......................... 1,030,000 1,031,250
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION BB- B1 1,000,000 International Shipholding Corp.,
SERVICES-1.1% 9.00% due 7/01/2003............... 999,375 1,022,500
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES-2.4% BB+ Ba1 1,000,000 CTC Mansfield Funding, 11.125% due
9/30/2016......................... 1,076,250 1,084,095
B B1 1,000,000 Midland Cogeneration Venture L.P.,
13.25% due 7/23/2006.............. 1,108,750 1,178,338
------------ ------------
2,185,000 2,262,433
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS-92.7% 84,041,124 87,784,894
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
[CAPTION]
<TABLE>
SHARES COMMON STOCK & WARRANTS
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
DEFENSE 0.0% 195 ++Empire of Carolina, Inc. (b)........ 10,140 1,268
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL 21,919 Southmark Corp. (b)................. 652,176 0
SERVICES-0.0%
- -----------------------------------------------------------------------------------------------------------------------------
FOOD & BEVERAGE-0.2% 17,824 Doskocil Companies, Inc............. 1,055,049 194,950
- -----------------------------------------------------------------------------------------------------------------------------
HIGH TECHNOLOGY-0.1% 30,351 ++Anacomp, Inc. (Warrants) (c)........ 40,000 79,671
- -----------------------------------------------------------------------------------------------------------------------------
HOTELS 8,216 ++Buckhead Corp. of America........... 20,540 20,540
CASINOS-0.1% 10,000 Goldriver Hotel & Casino Corp.
(Class B) (d)..................... 65,657 40,625
1,000 ++Goldriver Hotel & Casino Liquidating
Trust............................. 24,040 17,129
2,000 Trump Taj Mahal Holding Corp.
(Class A)......................... 1,000 45,500
------------ ------------
111,237 123,794
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-0.0% 315 Thermadyne Industries, Inc.
(Warrants) (c).................... 3,150 1,378
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS &
WARRANTS-0.4% 1,871,752 401,061
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE> 41
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE
INDUSTRY HELD ISSUE COST (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
BROADCASTING & 7,895 K-III Communications Corp. (a)...... $ 810,107 $ 797,402
PUBLISHING-0.8%
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL 1,114 Southmark Corp. (Series A) (b)...... 398,037 5,570
SERVICES-0.0%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS-0.8% 1,208,144 802,972
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE AMOUNT ISSUE
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL $3,000,000 Bank One Diversified Holding Co.,
PAPER**-6.8% 3.20% due 1/28/1994................ 2,992,533 2,992,533
1,429,000 General Electric Capital Corp.,
3.22% due 1/03/1994................ 1,428,617 1,428,617
2,000,000 Preferred Receivables Funding Corp.,
3.30% due 1/05/1994................ 1,999,083 1,999,083
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES-6.8% 6.420,233 6,420,233
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.7%............ $93,541,253 95,409,160
-----------
-----------
LIABILITIES IN EXCESS OF OTHER
ASSETS-(0.7%)....................... (669,776)
-----------
NET ASSETS-100.0%................... $94,739,384
-----------
-----------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Represents the effective yield at time of purchase.
** 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) Represents a Pay-in-Kind security which may pay interest/dividends in
additional face amount/shares.
(b) Non-income producing security.
(c) 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.
(d) 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.
+ Corresponding industry groups for convertible bonds:
(1) Food and Beverage
(2) Health Care
++ Restricted securities as to resale. The value of the Portfolio's investment
in restricted securities was approximately $4,276,000, representing 4.5% of
net assets.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
ISSUE ACQUISITION DATE COST (NOTE 1A)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Anacomp, Inc. (Warrants)............................................ 10/23/90 $ 40,000 $ 79,671
Buckhead Corp. of America (Common Stock)............................ 12/29/92 20,540 20,540
Coleman Holdings Inc., 11.09% due 5/27/1998......................... 10/07/93 778,440 809,375
Empire of Carolina, Inc. (Common Stock)............................. 6/16/87 to 5/22/90 10,140 1,268
Formica Corp., 15.75% due 10/01/2001................................ 6/03/93 673,711 708,750
Formica Corp., 13.125% due 9/15/2005................................ 11/09/93 1,003,750 1,015,625
Goldriver Hotel & Casino Liquidating Trust.......................... 8/31/92 24,040 17,129
Indspec Chemical Corp., 11.50% due 12/01/2003....................... 11/19/93 1,005,309 1,023,750
Page Mart, Inc. (with warrants), 12.25% due 11/01/2003.............. 10/12/93 556,288 600,000
- ------------------------------------------------------------------------------------------------------------------------
TOTAL $ 4,112,218 $ 4,276,108
----------- -----------
----------- -----------
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Ratings of issues shown have not been audited by Deloitte & Touche.
See Notes to Financial Statements.
40
<PAGE> 42
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Intermediate Government Bond Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<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 $ 5,732,650
BANK-2.0%
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL FARM CREDIT BANK 5,113,650 5,732,650
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME Federal Home Loan Mortgage Corporation:
LOAN MORTGAGE 8,000,000 6.60% due 11/12/1999.............................. 7,901,250 8,420,440
CORPORATION-7.1% 6,000,000 6.55% due 1/04/2000............................... 6,102,840 6,288,486
5,000,000 7.90% due 9/19/2001............................... 5,000,000 5,624,565
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION 19,004,090 20,333,491
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL Federal National Mortgage Association:
MORTGAGE 9,000,000 9.20% due 9/11/2000............................... 9,392,500 10,758,141
ASSOCIATION-11.6% 7,000,000 6.80% due 1/10/2003............................... 6,990,156 7,389,361
15,000,000 5.80% due 12/10/2003.............................. 14,953,125 14,840,010
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION 31,335,781 32,987,512
- ---------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED 1,219,756 Federal National Mortgage Association, 9.00% due
SECURITIES-0.5% 1/01/2002 (a).................................... 1,177,065 1,290,655
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES 1,177,065 1,290,655
- ---------------------------------------------------------------------------------------------------------------------------
PRIVATE EXPORT Private Export Funding Corporation:
FUNDING 7,000,000 8.35% due 1/31/2001............................... 7,083,590 8,116,017
CORPORATION-7.1% 10,000,000 8.75% due 6/30/2003............................... 10,410,681 12,134,410
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL PRIVATE EXPORT FUNDING CORPORATION 17,494,271 20,250,427
- ---------------------------------------------------------------------------------------------------------------------------
US TREASURY US Treasury Notes:
NOTES-68.2% 11,000,000 4.75% due 9/30/1998............................... 10,983,242 10,824,660
13,000,000 8.875% due 2/15/1999.............................. 14,712,344 15,096,120
16,000,000 6.00% due 10/15/1999.............................. 16,232,219 16,519,840
11,500,000 8.875% due 5/15/2000.............................. 14,030,000 13,620,255
20,000,000 8.75% due 8/15/2000............................... 23,590,625 23,612,400
21,000,000 8.50% due 11/15/2000.............................. 22,600,413 24,550,260
5,000,000 7.875% due 8/15/2001.............................. 5,645,313 5,692,150
23,000,000 7.50% due 11/15/2001.............................. 25,180,469 25,666,390
17,500,000 6.375% due 8/15/2002.............................. 18,620,780 18,254,600
12,000,000 6.25% due 2/15/2003............................... 12,030,405 12,397,440
14,000,000 5.75% due 8/15/2003............................... 13,939,520 13,956,180
10,000,000 10.75% due 8/15/2005.............................. 13,385,937 13,965,600
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US TREASURY NOTES 190,951,267 194,155,895
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY OBLIGATIONS-96.5% 265,076,124 274,750,630
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE> 43
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Intermediate Government Bond Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- ---------------------------------------------------------------------------------------------------------------------------
REPURCHASE $ 4,980,000 Bankers Trust Corp., purchased on
AGREEMENTS-1.8%* 12/31/1993 to yield 3.25% to 1/03/1994.......... $ 4,980,000 $ 4,980,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES-1.8% 4,980,000 4,980,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-98.3%........................... $ 270,056,124 279,730,630
-------------
-------------
OTHER ASSETS LESS LIABILITIES-1.7%................ 4,764,396
-------------
NET ASSETS-100.0%................................. $ 284,495,026
-------------
-------------
- ---------------------------------------------------------------------------------------------------------------------------
</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.
42
<PAGE> 44
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
S&P MOODY'S VALUE
RATING RATING FACE AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- -----------------------------------------------------------------------------------------------------------------------------
FEDERAL AGENCIES-0.8% AAA Aaa $ 1,000,000 Federal Home Loan Mortgage Corp.,
7.90% due 9/19/2001............. $ 1,000,000 $ 1,124,913
- -----------------------------------------------------------------------------------------------------------------------------
US TREASURY NOTES US Treasury Notes & Bonds:
& BONDS-16.4% NR Aaa 3,000,000 8.25% due 7/15/1998.............. 3,379,219 3,376,860
NR Aaa 1,500,000 6.00% due 10/15/1999............. 1,552,500 1,548,735
NR Aaa 1,000,000 8.75% due 8/15/2000.............. 1,189,844 1,180,620
NR Aaa 1,000,000 6.375% due 8/15/2002............. 1,045,313 1,043,120
NR Aaa 4,000,000 5.75% due 8/15/2003.............. 3,982,720 3,987,480
NR Aaa 5,000,000 7.875% due 2/15/2021............. 5,532,812 5,823,400
NR Aaa 4,000,000 8.00% due 11/15/2021............. 4,068,125 4,738,720
NR Aaa 1,000,000 7.125% due 2/15/2023............. 1,128,906 1,082,490
------------- -------------
21,879,439 22,781,425
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS-17.2% 22,879,439 23,906,338
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRY CORPORATE BONDS & NOTES
- -----------------------------------------------------------------------------------------------------------------------------
BANKING-10.2% A- A3 2,000,000 First Interstate Bancorp, 11.00%
due 3/05/1998................... 2,402,040 2,371,996
A- A3 2,000,000 Golden West Financial Corp.,
7.875% due 1/15/2002............ 2,010,240 2,184,140
A- A3 2,000,000 Huntington National Bank, 7.625%
due 1/15/2003................... 2,133,320 2,153,854
A A2 2,000,000 Norwest Corp., 6.625% due
3/15/2003....................... 1,999,810 2,039,006
A- A3 2,000,000 Society National Bank, Inc.,
6.75% due 6/15/2003............. 2,032,760 2,046,500
A- Baa1 1,000,000 U.S. Bancorp, 7.00% due
3/15/2003....................... 997,500 1,035,772
A A2 2,000,000 World Savings & Loan Association,
9.90% due 7/01/2000............. 2,072,740 2,353,066
------------- -------------
13,648,410 14,184,334
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES- A A2 1,000,000 Ford Motor Credit Corp., 6.75%
CAPTIVE-0.7% due 8/15/2008................... 994,150 994,072
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES- American General Finance Corp.,
CONSUMER-5.1% A+ A1 3,000,000 7.45% due 7/01/2002.............. 2,993,400 3,220,092
Associates Corp. of North
America:
AA- A1 2,500,000 8.80% due 8/01/1998.............. 2,817,275 2,822,270
AA- A1 1,000,000 6.75% due 10/15/1999............. 1,040,610 1,043,553
------------- -------------
6,851,285 7,085,915
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE> 45
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1993 (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-7.1% A A3 $ 1,000,000 6.875% due 3/01/2003............. $ 1,029,860 $ 1,024,195
A A3 1,000,000 6.75% due 10/15/2013............. 966,720 948,031
AAA Aaa 1,000,000 General Electric Capital Corp.,
8.70% due 2/15/2003............. 1,211,050 1,168,061
A1 A+ 1,000,000 Morgan Stanley Group, Inc., 7.00%
due 10/01/2013.................. 1,015,340 974,599
BBB+ A3 3,000,000 PaineWebber Group, Inc., 9.25%
due 12/15/2001.................. 3,507,900 3,470,964
A+ A3 2,000,000 Torchmark Corp., 9.625% due
5/01/1998....................... 1,952,770 2,301,606
------------- -------------
9,683,640 9,887,456
- -----------------------------------------------------------------------------------------------------------------------------
FOREIGN+-8.5% A2 A+ 1,000,000 CRA Finance Ltd., 6.50% due
12/01/2003(1)................... 998,500 998,910
A+ A1 1,000,000 Hydro-Quebec, 8.40% due
1/15/2022(2).................... 1,118,270 1,120,040
AAA Aaa 2,000,000 Japan Finance Corp. for Municipal
Enterprises, 8.70% due
7/30/2001(3).................... 2,237,380 2,332,942
A+ A1 3,500,000 Korea Development Bank, 6.25% due
5/01/2000(3).................... 3,518,760 3,501,414
A+ A1 750,000 Korea Electric Power, 7.75% due
4/01/2013(2).................... 767,580 769,573
Province of Quebec (Canada)(4):
A+ A1 1,000,000 7.50% due 7/15/2002.............. 1,076,020 1,069,346
A+ A1 1,500,000 13.00% due 10/01/2013............ 1,959,060 1,991,777
------------- -------------
11,675,570 11,784,002
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- Bass America, Inc.:
CONSUMER-11.7% A+ A1 1,000,000 6.75% due 8/01/1999.............. 1,009,090 1,042,077
A+ A1 2,500,000 8.125% due 3/31/2002............. 2,502,640 2,769,375
A+ A2 2,000,000 Dillard Department Stores, Inc.,
7.85% due 10/01/2012............ 1,928,620 2,165,672
Grand Metropolitan Investment
Corp.:
A+ A2 1,000,000 6.50% due 9/15/1999.............. 1,000,000 1,033,288
A+ A2 1,000,000 8.625% due 8/15/2001............. 1,047,750 1,150,171
A+ A2 1,500,000 9.00% due 8/15/2011.............. 1,544,205 1,787,315
A A2 2,000,000 Philip Morris Cos., Inc., 9.00%
due 1/01/2001(a)................ 2,084,740 2,309,122
AA Aa1 3,500,000 Wal-Mart Stores Inc., 8.625% due
4/01/2001....................... 3,488,100 4,069,817
------------- -------------
14,605,145 16,326,837
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- A+ A1 2,000,000 Atlantic Richfield Co., 10.375%
ENERGY-4.7% due 7/15/1995................... 2,107,950 2,178,802
AA- A1 2,000,000 BP America Inc., 7.875% due
5/15/2002....................... 2,110,760 2,210,514
Texaco Capital Inc.:
A+ A1 1,000,000 6.875% due 7/15/1999............. 998,060 1,053,635
A+ A1 1,000,000 8.00% due 8/01/2032.............. 969,730 1,101,910
------------- -------------
6,186,500 6,544,861
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE> 46
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1993 (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 (CONCLUDED)
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL- AA- Aa2 $ 2,000,000 Archer-Daniels-Midland Co., 6.25%
OTHER-12.4% due 5/15/2003................... $ 1,989,000 $ 2,022,520
A- A3 1,000,000 Baxter International Inc., 8.125%
due 11/15/2001.................. 992,470 1,110,531
A+ A1 3,000,000 Capital Cities/ABC, Inc. 8.875%
due 12/15/2000.................. 3,211,080 3,509,088
A A2 2,000,000 Communications Satellite Corp.,
8.125% due 4/01/2004............ 2,045,900 2,245,556
A- A3 2,000,000 Equifax, Inc., 6.50% due
6/15/2003....................... 1,989,800 2,011,068
A A3 1,000,000 First Data Corp., 6.625% due
4/01/2003....................... 1,035,250 1,015,322
AA- Aa3 1,000,000 Gannett Co., Inc. 5.25% due
3/01/1998....................... 996,820 999,268
AA Aa2 1,000,000 Kaiser Foundation Hospital, 9.00%
due 11/01/2001.................. 1,146,180 1,172,356
A A2 3,000,000 Weyerhaeuser Corp., 7.50% due
3/01/2013....................... 3,000,000 3,159,903
------------- -------------
16,406,500 17,245,612
- -----------------------------------------------------------------------------------------------------------------------------
SUPRANATIONAL-4.1% AAA Aaa 1,500,000 Asian Development Bank, 10.75%
due 6/01/1997................... 1,580,525 1,764,935
AAA Aaa 1,000,000 Inter-American Development Bank
Co., 8.50% due 3/15/2011........ 1,012,470 1,187,832
AAA Aaa 2,000,000 International Bank for
Reconstruction & Development,
12.375% due 10/15/2002.......... 2,432,280 2,827,186
------------- -------------
5,025,275 5,779,953
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORT Southwest Airlines, Inc.:
SERVICES-2.5% A- Baa1 2,000,000 9.40% due 7/01/2001.............. 2,407,120 2,353,712
A- Baa1 1,000,000 7.875% due 9/01/2007............. 998,750 1,086,883
------------- -------------
3,405,870 3,440,595
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- AA- Aa3 3,000,000 Pacific Bell, Inc., 7.25% due
COMMUNICATIONS-3.0% 7/01/2002....................... 2,985,420 3,211,260
A+ A1 1,000,000 Southwestern Bell
Telecommunications Corp., 6.125%
due 3/01/2000................... 1,005,000 1,016,562
------------- -------------
3,990,420 4,227,822
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- A A1 3,000,000 Pacific Gas & Electric Co.,
ELECTRIC-5.0% 7.875% due 3/01/2002............ 2,993,760 3,308,538
A A2 3,000,000 Pennsylvania Power & Light Co.,
6.875% due 2/01/2003............ 3,043,050 3,105,075
A A2 500,000 Virginia Electric & Power Co.,
6.625% due 4/01/2003............ 499,450 512,868
------------- -------------
6,536,260 6,926,481
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE> 47
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES- Consolidated Natural Gas Co.:
GAS-1.9% AA- A1 $ 1,500,000 8.75% due 6/01/1999.............. $ 1,512,720 $ 1,710,508
AA- A1 1,000,000 5.75% due 8/01/2003.............. 996,950 967,392
------------- -------------
2,509,670 2,677,900
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS &
NOTES-76.9%..................... 101,518,695 107,105,840
- -----------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER-1.1%* 1,500,000 General Electric Capital Corp.,
3.35% to 1/05/1994.............. 1,499,302 1,499,302
- -----------------------------------------------------------------------------------------------------------------------------
REPURCHASE 4,954,000 Bankers Trust Co., purchased on
AGREEMENTS-3.5%** 12/31/1993 to yield 3.25% to
1/03/1994....................... 4,954,000 4,954,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS-4.6% 6,453,302 6,453,302
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-98.7%.......... $ 130,851,436 137,465,480
-------------
-------------
OTHER ASSETS LESS
LIABILITIES-1.3%................. 1,855,282
-------------
NET ASSETS -- 100.0%............. $ 139,320,762
-------------
-------------
- -----------------------------------------------------------------------------------------------------------------------------
</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.
** Repurchase Agreements are fully collateralized by US Government
Obligations.
(a) Medium-Term Note.
+ Corresponding industry groups for foreign bonds:
(1) Industrial Mining.
(2) Electric Utility.
(3) Financial Institution.
(4) Government Entity.
Ratings of issues shown have not been audited by Deloitte & Touche.
See Notes to Financial Statements.
46
<PAGE> 48
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
INTEREST MATURITY VALUE
FACE AMOUNT ISSUE RATE* DATE (NOTE 1A)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
BANK NOTES-4.6% $ 5,000,000 FNB of Chicago.............................. 3.35% 1/31/94 $ 4,999,983
10,000,000 FNB of Chicago.............................. 3.55 5/25/94 10,005,700
10,000,000 NationsBank Corp., N.C...................... 3.65 6/21/94 10,010,065
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES
(COST-$25,008,080) 25,015,748
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER- 800,000 ABN-AMRO North America Finance, Inc......... 3.22 1/12/94 799,120
56.7% 3,000,000 ABN-AMRO North America Finance, Inc......... 3.32 1/24/94 2,993,300
10,000,000 APRECO, Inc................................. 3.28 3/11/94 9,937,778
10,000,000 Abbey National North America Corp........... 3.28 1/10/94 9,990,833
6,800,000 American Express Credit Corp................ 3.22 1/11/94 6,793,143
5,000,000 Arco Coal Australia, Inc.................... 3.33 2/07/94 4,982,214
5,000,000 Atlantic Richfield Co....................... 3.18 3/10/94 4,969,333
8,000,000 Australian Wool Realization Commission...... 3.20 1/19/94 7,985,856
20,000,000 Beta Finance Inc............................ 3.21 2/23/94 19,900,400
10,000,000 CIT Group Holdings, Inc.(The)............... 3.50 3/29/94 9,921,778
8,900,000 CSW Credit, Inc............................. 3.35 2/11/94 8,865,008
2,677,000 CXC Inc..................................... 3.23 2/01/94 2,669,314
11,026,000 Canadian Wheat Board........................ 3.22 3/29/94 10,939,752
8,600,000 Central & South West Corp................... 3.35 2/04/94 8,571,990
5,220,000 Central & South West Corp................... 3.36 2/04/94 5,202,948
4,000,000 Ciesco L.P. ................................ 3.20 2/08/94 3,986,133
15,000,000 Ford Motor Credit Co........................ 3.20 1/27/94 14,962,313
10,000,000 Ford Motor Credit Co........................ 3.22 3/08/94 9,940,444
10,000,000 General Electric Capital Corp............... 3.35 3/23/94 9,927,111
20,000,000 Generale Bank, Inc.......................... 3.34 2/18/94 19,909,622
15,000,000 Goldman Sachs Group L.P..................... 3.35 2/04/94 14,950,854
4,650,000 Hanson Finance (UK) PLC..................... 3.21 2/02/94 4,635,635
6,885,000 Hertz Funding Corp.......................... 3.37 1/21/94 6,871,546
4,000,000 Hertz Funding Corp.......................... 3.34 2/11/94 3,984,273
5,000,000 Kingdom of Sweden........................... 3.23 1/21/94 4,990,702
5,000,000 NationsBank Corp............................ 3.35 4/05/94 4,957,118
3,500,000 Nomura Holding America Inc.................. 3.37 1/24/94 3,492,183
10,000,000 Nomura Holding America Inc.................. 3.40 1/24/94 9,977,667
1,784,000 Preferred Receivables Funding Corp.......... 3.23 2/01/94 1,778,878
4,000,000 Preferred Receivables Funding Corp.......... 3.23 2/14/94 3,983,850
5,225,000 Preferred Receivables Funding Corp.......... 3.28 2/18/94 5,201,389
1,620,000 Sanwa Business Credit Corp.................. 3.25 2/24/94 1,611,783
10,020,000 Sanwa Business Credit Corp.................. 3.23 3/22/94 9,947,856
10,000,000 Societe Generale North America, Inc......... 3.23 2/28/94 9,945,589
8,000,000 Student Loan Corp........................... 3.33 1/31/94 7,977,060
15,400,000 Svenska Handelsbanken, Inc.................. 3.25 1/05/94 15,392,942
10,000,000 Svenska Handelsbanken, Inc.................. 3.30 3/10/94 9,938,667
7,000,000 Transamerica Finance Corp................... 3.36 2/22/94 6,965,786
10,000,000 Transamerica Finance Corp................... 3.35 3/02/94 9,945,778
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST-$309,786,423) 309,797,946
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES- 1,000,000 Associates Corp. of North America........... 9.00 1/15/94 1,002,828
0.3% 500,000 Associates Corp. of North America........... 9.90 3/01/94 505,902
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES (COST-$1,506,799) 1,508,730
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE> 49
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
INTEREST MATURITY VALUE
FACE AMOUNT ISSUE RATE* DATE (NOTE 1A)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
MASTER NOTES- $ 3,000,000 Bear Stearns Co., Inc. (The)+............... 3.34% 5/23/94 $ 3,000,000
5.7% 8,000,000 Goldman Sachs Group, L.P.+.................. 3.33 3/01/94 8,000,000
20,000,000 Kingdom of Sweden+.......................... 3.188 7/15/94 20,000,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL MASTER NOTES (COST-$31,000,000) 31,000,000
- -----------------------------------------------------------------------------------------------------------------------------
MEDIUM-TERM 14,000,000 General Electric Capital Corp............... 3.50 8/25/94 13,994,400
NOTES-2.5%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES (COST-$13,996,373) 13,994,400
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT, 5,867,000 Federal Home Loan Mortgage.................. 3.12 1/24/94 5,854,562
AGENCY & 170,000 Federal National Mortgage Association....... 3.26 5/02/94 168,151
INSTRUMENTALITY 170,000 Federal National Mortgage Association....... 3.34 9/22/94 165,745
OBLIGATIONS-DISCOUNT-
1.1%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT, AGENCY & INSTRUMENTALITY
OBLIGATIONS-DISCOUNT (COST-$6,188,739) 6,188,458
- -----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT, 3,000,000 Federal Home Loan Bank+..................... 3.43 6/21/95 3,000,000
AGENCY & 3,000,000 Federal Home Loan Bank+..................... 3.33 8/09/95 3,000,000
INSTRUMENTALITY 6,000,000 Federal Home Loan Bank+..................... 3.43 12/28/95 6,000,000
OBLIGATIONS- 6,000,000 Federal Home Loan Bank+..................... 3.46 6/17/96 6,000,000
NON-DISCOUNT-28.9% 2,000,000 Federal Home Loan Bank+..................... 3.46 6/21/96 2,000,000
3,000,000 Federal Home Loan Mortgage+................. 3.33 8/09/95 3,000,000
29,000,000 Federal Home Loan Mortgage+................. 3.36 9/01/95 29,000,000
5,000,000 Federal Home Loan Mortgage+................. 3.37 9/01/95 5,000,000
5,000,000 Federal National Mortgage Association+...... 2.92 7/08/94 5,000,000
8,000,000 Federal National Mortgage Association+...... 3.33 5/13/96 8,000,000
5,000,000 Federal National Mortgage Association+...... 3.33 5/24/96 5,000,000
8,000,000 Federal National Mortgage Association+...... 3.45 5/19/97 8,000,000
8,000,000 Federal National Mortgage Association+...... 3.50 5/14/98 8,000,000
2,000,000 Student Loan Marketing Association+......... 3.89 2/04/94 2,001,225
5,000,000 Student Loan Marketing Association+......... 3.195 2/10/94 4,999,542
2,000,000 Student Loan Marketing Association+......... 3.42 12/30/94 2,004,512
10,000,000 Student Loan Marketing Association+......... 3.48 1/14/97 10,000,000
10,000,000 US Treasury Notes........................... 5.375 2/28/94 10,036,270
5,000,000 US Treasury Notes........................... 5.125 5/31/94 5,037,500
5,000,000 US Treasury Notes........................... 5.00 6/30/94 5,040,625
5,000,000 US Treasury Notes........................... 3.875 3/31/95 5,001,560
5,000,000 US Treasury Notes........................... 3.875 4/30/95 5,000,000
1,250,000 US Treasury Notes........................... 4.125 6/30/95 1,253,125
7,500,000 US Treasury Notes........................... 3.875 8/31/95 7,478,902
5,000,000 US Treasury Notes........................... 3.875 9/30/95 4,982,810
4,250,000 US Treasury Notes........................... 4.25 12/31/95 4,251,326
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT AGENCY & INSTRUMENTALITY
OBLIGATIONS-NON-DISCOUNT (COST-$158,094,725) 158,087,397
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST-$545,581,139)-99.80%.................. 545,592,679
OTHER ASSETS LESS LIABILITIES-0.20%......... 1,117,463
-------------
NET ASSETS-100.00%.......................... $ 546,710,142
-------------
-------------
- -----------------------------------------------------------------------------------------------------------------------------
</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
appropriate indexes. The interest rates shown are the rates in effect at
December 31, 1993.
+ Variable Rate Notes.
See Notes to Financial Statements.
48
<PAGE> 50
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
AEROSPACE 225,000 AlliedSignal Inc............... $ 13,738,604 $ 17,775,000 1.4%
- --------------------------------------------------------------------------------------------------------------------------
APPAREL 350,000 Phillips-Van Heusen Corp....... 8,501,207 13,125,000 1.1
- --------------------------------------------------------------------------------------------------------------------------
APPLIANCES 900,000 Singer Co...................... 23,605,557 33,637,500 2.7
825,500 Sunbeam-Oster.................. 16,414,991 18,161,000 1.5
-------------- -------------- ----------
40,020,548 51,798,500 4.2
- --------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 275,000 Consorcio G Grupo Dina, S.A. de
EQUIPMENT C.V. (ADR)(a)................. 4,588,824 7,665,625 0.6
550,000 Cooper Tire and Rubber Co. .... 7,166,211 13,750,000 1.1
375,000 Ford Motor Co. ................ 20,726,900 24,187,500 1.9
150,000 Magna International, Inc. ..... 6,567,510 7,462,500 0.6
-------------- -------------- ----------
39,049,445 53,065,625 4.2
- --------------------------------------------------------------------------------------------------------------------------
BANKING 400,000 Bank of New York, Inc. ........ 17,274,427 22,800,000 1.8
115,000 +Bank of New York, Inc.
(Warrants)(b)................. 863,281 1,207,500 0.1
-------------- -------------- ----------
18,137,708 24,007,500 1.9
- --------------------------------------------------------------------------------------------------------------------------
BEVERAGES 50,000 Panamerican Beverages, Inc. ... 1,539,541 1,912,500 0.2
100,000 PepsiCo Inc.................... 3,975,630 4,087,500 0.3
-------------- -------------- ----------
5,515,171 6,000,000 0.5
- --------------------------------------------------------------------------------------------------------------------------
CHEMICALS 160,000 PPG Industries, Inc............ 11,611,791 12,140,000 1.0
180,000 Rohm and Haas.................. 9,787,611 10,710,000 0.9
-------------- -------------- ----------
21,399,402 22,850,000 1.9
- --------------------------------------------------------------------------------------------------------------------------
COMMUNICATION 460,000 ADC Telecommunication Inc...... 12,158,786 16,387,500 1.3
EQUIPMENT 87,700 ALC Communication Corp......... 2,236,350 2,521,375 0.2
14,000 Antec Corporation.............. 252,000 343,000 0.0
250,000 DSC Communication Corp......... 13,552,366 15,359,375 1.2
375,420 LDDS Communication
(Class A)..................... 16,571,928 18,207,870 1.5
800,000 MCI Communication Co. ......... 22,595,338 22,550,000 1.8
80,000 Motorola, Inc. ................ 4,813,450 7,390,000 0.6
60,000 Picturetel Corp................ 1,087,357 1,117,500 0.1
250,000 Tellabs, Inc. ................. 8,364,482 11,750,000 0.9
100,000 Sprint Corp.................... 3,723,100 3,475,000 0.3
-------------- -------------- ----------
85,355,157 99,101,620 7.9
- --------------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 235,100 +Computer Sciences Corp......... 18,858,297 23,392,450 1.9
540,000 General Motors Corp.
(Class E)..................... 16,188,094 15,795,000 1.3
100,000 Microsoft Corp. ............... 8,376,221 8,062,500 0.7
-------------- -------------- ----------
43,422,612 47,249,950 3.9
- --------------------------------------------------------------------------------------------------------------------------
COMPUTER TECHNOLOGY 245,000 Solectron Corp................. 5,922,674 6,951,875 0.6
- --------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 300,000 Emerson Electric Co............ 16,310,335 18,075,000 1.5
- --------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES 500,000 California Energy Inc.......... 8,941,083 9,250,000 0.7
- --------------------------------------------------------------------------------------------------------------------------
ENGINEERING & 262,500 Thermo Electron................ 10,711,899 11,025,000 0.9
CONSTRUCTION
- --------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 1,600,000 Wheelabrator Technologies,
Inc. ......................... 19,656,504 28,400,000 2.3
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
49
<PAGE> 51
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS 325,000 Willamette Industries, Inc..... $ 11,694,343 $ 16,168,750 1.3%
- --------------------------------------------------------------------------------------------------------------------------
HEALTH 400,000 Humana Inc..................... 6,705,601 7,050,000 0.6
115,000 Johnson and Johnson Co. ....... 4,598,582 5,146,250 0.4
350,000 Physician Corp................. 6,809,163 8,706,250 0.7
150,000 +Vivra Inc. .................... 2,784,041 3,468,750 0.3
-------------- -------------- ----------
20,897,387 24,371,250 2.0
- --------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 300,000 Procter and Gamble............. 16,617,087 17,100,000 1.4
- --------------------------------------------------------------------------------------------------------------------------
INSURANCE 35,000 America International Group
Inc. ......................... 3,094,434 3,071,250 0.2
200,000 Capital Holding Corp. ......... 8,211,266 7,425,000 0.6
-------------- -------------- ----------
11,305,700 10,496,250 0.8
- --------------------------------------------------------------------------------------------------------------------------
MEDIA/PUBLISHING 300,000 News Corp...................... 15,691,685 15,825,000 1.3
- --------------------------------------------------------------------------------------------------------------------------
MERCHANDISING 100,000 Heilig-Meyers Co. PLC
(ADR)(a)...................... 1,350,946 3,900,000 0.3
- --------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 350,000 Danka Business Systems Inc..... 8,360,292 13,846,875 1.1
- --------------------------------------------------------------------------------------------------------------------------
PAPER & PACKAGING 500,000 +Crown Cork & Seal Co., Inc..... 7,738,866 20,937,500 1.7
70,000 Union Camp Corp................ 3,347,099 3,333,750 0.3
-------------- -------------- ----------
11,085,965 24,271,250 2.0
- --------------------------------------------------------------------------------------------------------------------------
PETROLEUM- 125,000 Chevron Corp................... 10,942,053 10,890,625 0.9
INTERNATIONAL 30,000 Mobil Corp. ................... 2,358,265 2,370,000 0.2
375,000 Phillips Petroleum Co. ........ 10,919,138 10,875,000 0.9
-------------- -------------- ----------
24,219,456 24,135,625 2.0
- --------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 150,000 Gannett Co..................... 7,641,674 8,587,500 0.7
- --------------------------------------------------------------------------------------------------------------------------
RAILROADS 35,000 CSX Corp. ..................... 2,953,415 2,835,000 0.2
60,200 Southern Pacific Rail Corp..... 1,174,261 1,188,950 0.1
-------------- -------------- ----------
4,127,676 4,023,950 0.3
- --------------------------------------------------------------------------------------------------------------------------
SERVICES 125,000 Block (H&R), Inc............... 3,688,344 5,093,750 0.4
180,025 Kelly Services, Inc. (Class A)
(Non-Voting).................. 5,243,796 4,973,190 0.4
-------------- -------------- ----------
8,932,140 10,066,940 0.8
- --------------------------------------------------------------------------------------------------------------------------
TIRE & RUBBER 67,500 Bandag, Inc. .................. 2,728,506 3,737,812 0.3
149,200 Bandag, Inc. (Class A)......... 7,607,300 7,721,100 0.6
-------------- -------------- ----------
10,335,806 11,458,912 0.9
- --------------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 488,942,506 592,927,372 47.9
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
COUNTRY FOREIGN STOCKS & WARRANTS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
ARGENTINA 106,030 Banco de Galicia y Buenos Aires
S.A. (ADR)(a)(3).............. 2,080,350 4,261,081 0.3
75,600 Banco Frances del Rio de la
Plata S.A. (ADR)(a)(3)........ 2,313,360 2,976,750 0.2
800,000 Telecom Argentina S.A. (Class
B) (Ordinary)(19)............. 3,837,940 5,034,068 0.4
-------------- -------------- ----------
8,231,650 12,271,899 0.9
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
50
<PAGE> 52
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 300,000 +Coles Myer Ltd.
(Warrants)(b)(19)............. $ 896,844 $ 645,444 0.1%
338,370 National Australia Bank
Ltd. (3)...................... 2,108,736 2,829,309 0.2
367,561 Pacific Dunlop, Ltd. (12)...... 1,379,974 1,347,106 0.1
-------------- -------------- ----------
4,385,554 4,821,859 0.4
- --------------------------------------------------------------------------------------------------------------------------
CANADA 75,000 Hudson Bay Co.(16)............. 2,293,862 2,237,538 0.2
400,000 International Semi-Tech
Microelectronics Inc.
(Receipts)(7)++............... 2,584,007 2,265,861 0.2
-------------- -------------- ----------
4,877,869 4,503,399 0.4
- --------------------------------------------------------------------------------------------------------------------------
CHILE 136,400 Distribuidora Chilectra
Metropolitana
S.A. (ADR)(a)(7)++............ 3,929,378 5,600,584 0.5
- --------------------------------------------------------------------------------------------------------------------------
FRANCE 5,358 +Compagnie Generale des
Eaux (7)...................... 2,002,292 2,647,749 0.2
- --------------------------------------------------------------------------------------------------------------------------
GERMANY 3,000 Mannesmann AG (11)............. 514,933 729,077 0.1
- --------------------------------------------------------------------------------------------------------------------------
HONG KONG 60,000 Cheung Kong Holdings (9)....... 216,163 367,085 0.0
1,543,041 Dairy Farms International
Holdings (8).................. 2,666,001 3,076,891 0.3
350,000 Henderson Land
Development (8)............... 1,105,930 2,583,193 0.2
1,500,000 Hong Kong Land, Ltd. (14)...... 2,918,109 5,321,766 0.4
686,954 HSBC Holdings PLC (3).......... 3,623,868 10,229,148 0.8
2,736,000 Hutchison Whampoa Co. (14)..... 5,304,775 13,639,259 1.1
1,700,000 Johnson Electrical
Holdings Ltd. (7)............. 3,387,675 4,358,410 0.4
1,000,000 Swire Pacific, Ltd. (Class
A)(14)........................ 3,811,431 8,999,094 0.7
-------------- -------------- ----------
23,033,952 48,574,846 3.9
- --------------------------------------------------------------------------------------------------------------------------
MEXICO 2,715,000 Cifra, S.A. de C.V. (19)....... 2,377,961 8,149,372 0.7
450,000 Empresas ICA Sociedad
Controladora, S.A. de C.V.
(ADR)(a)(7)................... 8,887,921 12,712,500 1.0
960,000 +Grupo Carso, S.A. de C.V.
(ADR)(a)(14)++................ 8,031,744 20,880,000 1.7
175,000 Grupo Fina Seffin Co.
(ADR)(a)(3)................... 4,326,060 5,162,500 0.4
150,000 Telefonos de Mexico, S.A. de
C.V. (ADR)(a)(19)............. 7,262,510 10,125,000 0.8
1,625,000 Telefonos de Mexico, S.A. de
C.V. (Class A)(21)............ 2,515,263 5,469,002 0.4
4,600,000 Telefonos de Mexico, S.A. de
C.V. (Class L)(21)............ 8,849,263 15,481,481 1.3
100,000 Transportacion Maritima
Mexicana, S.A. de C.V.
(ADR)(a)(2)................... 934,108 1,025,000 0.1
-------------- -------------- ----------
43,184,830 79,004,855 6.4
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 171,305 Aegon N.V. (12)................ 7,005,345 9,307,178 0.8
150,000 Royal Dutch Petroleum Co. N.V.
(ADR)(a)(8)................... 12,736,881 15,656,250 1.3
-------------- -------------- ----------
19,742,226 24,963,428 2.1
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE> 53
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
PORTUGAL 114,833 Banco Commercial
Portugues (3)................. $ 1,438,512 $ 1,728,019 0.1%
170,000 Banco Commercial Portugues
(New) (ADR)(a)(3)............. 2,108,031 2,592,500 0.2
175,000 Espirito Santo Financial Co.
(ADR)(a)(2)................... 4,931,908 6,168,750 0.5
-------------- -------------- ----------
8,478,451 10,489,269 0.8
- --------------------------------------------------------------------------------------------------------------------------
SPAIN 97,200 Empresa Nacional de
Electricidad S.A.
(ADR)(a)(7)................... 1,232,983 4,617,000 0.4
80,000 Repsol S.A. (ADR)(a)(17)....... 2,164,334 2,488,640 0.2
-------------- -------------- ----------
3,397,317 7,105,640 0.6
- --------------------------------------------------------------------------------------------------------------------------
521,315 British Petroleum PLC (17)..... 2,620,804 2,773,813 0.2
UNITED KINGDOM 200,000 British Petroleum PLC (ADR)
(a)(17)....................... 10,645,545 12,800,000 1.0
550,000 Huntingdon International
Holdings PLC (ADR)(a)(3)...... 12,358,643 5,018,750 0.4
75,000 Reuters Holdings PLC
(ADR)(a)(4)................... 3,814,272 5,925,000 0.5
-------------- -------------- ----------
29,439,264 26,517,563 2.1
- --------------------------------------------------------------------------------------------------------------------------
VENEZUELA 295,000 +Siderurgica Venezolana SIVENSA
S.A.I.C.A.-S.A.C.A. (ADR)
(Warrants)(a)(b)(2)++......... 695,375 41,300 0.0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 151,913,091 227,271,468 18.4
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT* FOREIGN BONDS
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
AUSTRALIA A$ 5,900,000 Queensland Treasury Global
Notes, 8.00% due
7/14/1999 (9)................. 4,383,000 4,286,956 0.3
- --------------------------------------------------------------------------------------------------------------------------
CANADA C$ 14,500,000 Government of Canada, 7.25% due
6/01/2003 (9)................. 10,739,024 11,473,694 0.9
- --------------------------------------------------------------------------------------------------------------------------
FRANCE Frf 44,000,000 French Government "OAT",
8.50%** due 4/25/2003(9)...... 8,852,519 8,949,712 0.7
- --------------------------------------------------------------------------------------------------------------------------
ITALY Lit 13,000,000,000 Buoni Poliennali del Tesoro
(BPTS), 12.00% due
1/01/1998 (9)................. 8,530,161 8,451,187 0.7
- --------------------------------------------------------------------------------------------------------------------------
MEXICO Mxp 53,174,920 Mexican Cetes 12.60%** due
9/07/1995 (9)................. 14,157,053 14,385,486 1.2
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 2,000,000 Aegon N.V., 7.00% due
9/15/2001 (11)................ 2,609,858 2,960,000 0.2
- --------------------------------------------------------------------------------------------------------------------------
SPAIN Esp 1,200,000,000 Government of Spain, 10.50% due
10/30/2003 (9)................ 10,317,638 9,714,086 0.8
- --------------------------------------------------------------------------------------------------------------------------
SWEDEN Skr 48,000,000 Government of Sweden, 10.75%
due 1/23/1997 (9)............. 6,691,234 6,456,091 0.5
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE> 54
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Continued)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
COUNTRY AMOUNT* FOREIGN BONDS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM L 3,250,000 UK Treasury Gilt, 8.75% due
9/01/1997 (9)................. $ 5,607,961 $ 5,309,371 0.4%
1,200,000 UK Treasury Gilt, 7.25% due
3/30/1998 (9)................. 1,792,448 1,885,282 0.2
-------------- -------------- ----------
7,400,409 7,194,653 0.6
- --------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 73,680,896 73,871,865 5.9
- --------------------------------------------------------------------------------------------------------------------------
INDUSTRY US CORPORATE BONDS
- --------------------------------------------------------------------------------------------------------------------------
COMPUTERS $ 5,000,000 Texas Instruments Inc., 9.00%
due 3/15/2001................. 5,143,400 5,793,750 0.5
- --------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES 5,000,000 ITT Hartford Financial, 8.30%
due 12/01/2001................ 5,107,750 5,590,625 0.5
- --------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES 10,000,000 Virginia Electric & Power Co.,
8.45% due 10/30/2003.......... 10,000,000 11,550,000 0.9
- --------------------------------------------------------------------------------------------------------------------------
TOBACCO Philip Morris Cos., Inc.:
5,000,000 9.25% due 12/01/1997........... 4,991,500 5,645,270 0.5
5,000,000 9.00% due 1/01/2001............ 5,246,300 5,640,625 0.4
10,000,000 8.75% due 6/01/2001............ 10,346,950 11,187,500 0.9
-------------- -------------- ----------
20,584,750 22,473,395 1.8
- --------------------------------------------------------------------------------------------------------------------------
TOTAL US CORPORATE BONDS 40,835,900 45,407,770 3.7
- --------------------------------------------------------------------------------------------------------------------------
US & FOREIGN GOVERNMENT
& AGENCY OBLIGATIONS
- --------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN 20,000,000 Federal Home Loan Mortgage
MORTGAGE COMPANY Company, 7.00% due
9/15/2007..................... 19,218,750 20,098,438 1.6
20,000,000 Federal Home Loan Mortgage
Company, 6.75% due
4/25/2021..................... 20,312,500 19,962,500 1.6
-------------- -------------- ----------
39,531,250 40,060,938 3.2
- --------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT 5,000,000 Hydro Electric Quebec, 6.35%
OBLIGATIONS due 1/15/2002 (11)............ 5,000,000 4,921,875 0.4
5,000,000 Republic of Italy, 8.75% due
2/08/2001 (11)................ 5,373,050 5,681,260 0.5
-------------- -------------- ----------
10,373,050 10,603,135 0.9
- --------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT US Treasury Notes:
OBLIGATIONS 40,000,000 7.875% due 8/15/2001........... 39,230,800 45,537,520 3.7
6,000,000 7.50% due 11/15/2001........... 6,023,438 6,694,686 0.5
25,000,000 6.25% due 2/15/2003............ 25,710,938 25,828,125 2.1
35,000,000 5.75% due 8/15/2003............ 36,416,406 34,885,165 2.8
US Treasury STRIPS:
25,000,000 9.064%** due 2/15/1994......... 24,724,952 24,911,950 2.0
15,000,000 3.38%** due 5/15/2000.......... 10,494,417 10,619,850 0.9
-------------- -------------- ----------
142,600,951 148,477,296 12.0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL US & FOREIGN GOVERNMENT
& AGENCY OBLIGATIONS 192,505,251 199,141,369 16.1
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE> 55
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT* SHORT-TERM SECURITIES COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER*** $ 20,000,000 BTR Dunlop Finance Inc., 3.35%
due 1/27/1994................. $ 19,951,611 $ 19,951,611 1.6%
20,000,000 Ciesco L.P. Co., 3.25% due
2/11/1994..................... 19,925,972 19,925,972 1.6
10,000,000 Corporate Asset Funding Co.,
Inc., 3.35% due 1/05/1994..... 9,996,278 9,996,278 0.8
11,943,000 Daimler Benz North America
Corp., 3.25% due 1/31/1994.... 11,910,654 11,910,654 1.0
42,011,000 General Electric Capital Corp.,
3.22% due 1/03/1994........... 42,003,485 42,003,485 3.4
10,000,000 Matterhorn Capital Corp., 3.22%
due 1/13/1994................. 9,989,267 9,989,267 0.8
5,000,000 Paribas Finance Inc., 3.36% due
1/05/1994..................... 4,998,133 4,998,133 0.4
- --------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT TERM SECURITIES.... 118,775,400 118,775,400 9.6
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS.............. $1,066,653,044 1,257,395,244 101.6
--------------
--------------
LIABILITIES IN EXCESS OF OTHER
ASSETS........................ (20,058,961) (1.6)
-------------- -----
NET ASSETS..................... $1,237,336,283 100.0
-------------- -----
-------------- -----
- --------------------------------------------------------------------------------------------------------------------------
</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.
+ Non-income producing security.
++ Restricted securities as to resale. The value of the fund's investment in
restricted securities was approximately $26,522,000 representing 2.1% of net
assets.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
VALUE
ISSUE ACQUISITION DATE COST (NOTE 1A)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Distribuidora Chilectra Metropolitana S.A. (ADR)....................... 2/12/92 $ 3,929,378 $ 5,600,584
Grupo Carso, S.A. de C.V. (ADR)........................................ 9/24/91 8,031,744 20,880,000
Siderurgica Venezolana SIVENSA S.A.I.C.A.-S.A.C.A. (ADR) (Warrants).... 2/13/92 695,375 41,300
- -------------------------------------------------------------------------------------------------------------------------
TOTAL.................................................................. $ 12,656,497 $ 26,521,884
------------ ------------
------------ ------------
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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.
++ 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.
Corresponding industry groups for foreign stocks and bonds:
(1) Automotive & Equipment
(2) Banking
(3) Building and Construction
(4) Business Services
(5) Conglomerates
(6) Consumer--Durables
(7) Consumer--Electronics
(8) Food Merchandising
(9) Government Entities
(10) Insurance
(11) Machinery & Equipment
(12) Multi-Industry
(13) Oil--International
(14) Petroleum
(15) Real Estate
(16) Retail
(17) Services
(18) Transportation
(19) Utilities--Communication
(20) Utilities--Electric
(21) Utilities--Water
See Notes to Financial Statements.
54
<PAGE> 56
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Natural Resources Portfolio
Schedule of Investments as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
ALUMINUM 27,000 Alcan Aluminum Ltd. ................... $ 565,515 $ 560,250 3.0%
9,700 Aluminum Co. of America................ 660,674 672,938 3.6
15,200 Reynolds Metals Co..................... 754,804 689,700 3.7
------------ ------------ ----------
1,980,993 1,922,888 10.3
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS 14,700 du Pont (E.I.) de Nemours & Co......... 751,324 709,275 3.8
- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED NATURAL 24,100 Coastal Corp........................... 652,126 677,813 3.7
GAS PIPELINES
- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED RESOURCES 22,400 +Norsk Hydro A.S. (ADR)*................ 557,787 627,200 3.4
- ----------------------------------------------------------------------------------------------------------------------------
ENGINEERING & 29,800 Dresser Industries, Inc................ 615,288 618,350 3.4
CONSTRUCTION
- ----------------------------------------------------------------------------------------------------------------------------
NATURAL GAS 13,200 Consolidated Natural Gas Co............ 643,387 620,400 3.4
DISTRIBUTORS
- ----------------------------------------------------------------------------------------------------------------------------
OIL & GAS PRODUCERS 40,600 Norcen Energy Corp..................... 679,820 492,275 2.7
- ----------------------------------------------------------------------------------------------------------------------------
OIL SERVICES 99,600 +Parker Drilling Co..................... 694,705 547,800 3.0
76,200 +Rowan Companies Inc.................... 767,070 685,800 3.7
10,200 Schlumberger Ltd., Inc. ............... 633,288 603,075 3.3
29,000 Tidewater Inc. ........................ 587,938 580,000 3.1
------------ ------------ --------
2,683,001 2,416,675 13.1
- ----------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST 7,900 Georgia-Pacific Corp................... 576,942 543,125 2.9
PRODUCTS 8,600 International Paper Co................. 577,877 582,650 3.2
14,000 Scott Paper Co......................... 553,792 575,750 3.1
16,100 Union Camp Corp........................ 716,627 766,762 4.2
16,800 Weyerhaeuser Co........................ 682,779 749,700 4.1
------------ ------------ --------
3,108,017 3,217,987 17.5
- ----------------------------------------------------------------------------------------------------------------------------
PETROLEUM- 11,800 Amoco Corp............................. 620,537 623,925 3.4
INTEGRATED 17,900 Imperial Oil Ltd....................... 674,229 606,362 3.3
20,500 Phillips Petroleum Co.................. 617,427 594,500 3.2
------------ ------------ --------
1,912,193 1,824,787 9.9
- ----------------------------------------------------------------------------------------------------------------------------
PETROLEUM- 10,000 Exxon Corp............................. 656,015 630,000 3.4
INTERNATIONAL 6,500 Royal Dutch Petroleum Co. N.V.
(ADR)*................................ 538,920 678,438 3.7
------------ ------------ --------
1,194,935 1,308,438 7.1
- ----------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS 42,000 +Destec Energy Inc...................... 692,161 603,750 3.3
- ----------------------------------------------------------------------------------------------------------------------------
STEEL 25,000 Allegheny Ludlum Corp.................. 587,769 596,875 3.2
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 16,058,801 15,636,713 84.8
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE> 57
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Natural Resources Portfolio
Schedule of Investments as of December 31, 1993 (Concluded)
================================================================================
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT SHORT-TERM SECURITIES COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
US GOVERNMENT AGENCY $ 1,000,000 Federal National Mortgage Association,
OBLIGATIONS** 3.135% due 1/10/1994.................. $ 999,129 $ 999,129 5.4%
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER** 943,000 General Electric Capital Corp., 3.22%
due 1/03/1994......................... 942,747 942,747 5.1
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 1,941,876 1,941,876 10.5
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS...................... $ 18,000,677 17,578,589 95.3
------------
------------
OTHER ASSETS LESS LIABILITIES.......... 858,236 4.7
------------ --------
NET ASSETS............................. $ 18,436,825 100.0%
------------ --------
------------ --------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Non-income producing security.
* 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.
56
<PAGE> 58
(This page intentionally left blank)
57
<PAGE> 59
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Assets and Liabilities as of December 31, 1993
================================================================================
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value* (Note 1a)........................................ $ 87,077,832 $ 225,323,693 $ 179,145,996
Cash.................................................................... 12,001 -- 17,791
Interest receivable..................................................... 664,018 56,226 802,432
Dividends receivable.................................................... 59,881 169,273 231,913
Receivable for securities sold.......................................... -- 2,424,283 --
Receivable for capital shares sold...................................... 406,383 1,365,778 3,259,967
Prepaid expenses and other assets (Note 1d)............................. 279 1,143 261
------------ ------------- -------------
Total assets.......................................................... 88,220,394 229,340,396 183,458,360
------------ ------------- -------------
LIABILITIES:
Payable for capital shares redeemed..................................... 147,633 873,992 708,047
Payable for securities purchased........................................ -- 1,426,346 --
Payable to investment adviser (Note 2).................................. 24,542 60,710 48,508
Payable for dividends to shareholders (Note 1f)......................... -- -- --
Accrued expenses and other liabilities.................................. 29,875 3,008,469 29,761
------------ ------------- -------------
Total liabilities..................................................... 202,050 5,369,517 786,316
------------ ------------- -------------
NET ASSETS.............................................................. $ 88,018,344 $ 223,970,879 $ 182,672,044
------------ ------------- -------------
------------ ------------- -------------
NET ASSETS CONSIST OF:
Common Stock, $0.10 par value+.......................................... $ 601,909 $ 870,455 $ 1,184,974
Paid-in capital in excess of par........................................ 75,139,054 158,514,034 161,760,373
Undistributed investment income -- net.................................. 1,451,652 1,232,859 2,060,075
Undistributed (accumulated) realized capital gains (losses) on
investments and foreign currency transactions -- net (Note 5)......... 1,293,454 22,586,210 2,945,309
Unrealized appreciation/depreciation on investments and foreign currency
transactions -- net................................................... 9,532,275 40,767,321 14,721,313
------------ ------------- -------------
NET ASSETS.............................................................. $ 88,018,344 $ 223,970,879 $ 182,672,044
------------ ------------- -------------
------------ ------------- -------------
Capital shares outstanding.............................................. 6,019,091 8,704,555 11,849,745
------------ ------------- -------------
------------ ------------- -------------
Net asset value, offering and redemption price per share................ $ 14.62 $ 25.73 $ 15.42
------------ ------------- -------------
------------ ------------- -------------
*Identified cost........................................................ $ 77,545,557 $ 184,555,904 $ 164,411,080
------------ ------------- -------------
------------ ------------- -------------
+Authorized shares...................................................... 100,000,000 100,000,000 100,000,000
------------ ------------- -------------
------------ ------------- -------------
</TABLE>
See Notes to Financial Statements.
58
<PAGE> 60
- --------------------------------------------------------------------------------
================================================================================
<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>
-------------------------------------------------------------------------------------------------------------------------
$ 124,015,701 $ 95,409,160 $ 279,730,630 $ 137,465,480 $ 545,592,679 $1,257,395,244 $ 17,578,589
338 13,458 437,957 424 12,138 -- 3,887
9,630 2,177,459 4,817,050 2,760,030 1,473,079 5,896,535 --
110,808 -- -- -- -- 691,953 10,620
1,887,574 -- -- -- -- 3,658,234 --
362,640 893,328 411,936 34,946 -- 1,276,783 1,228,752
672 392 10,912 5,149 4,926 7,079 62
------------- ------------ ------------- ------------- ------------- -------------- -------------
126,387,363 98,493,797 285,408,485 140,266,029 547,082,822 1,268,925,828 18,821,910
------------- ------------ ------------- ------------- ------------- -------------- -------------
1,693,631 1,248,683 796,762 887,186 -- 3,461,510 375,464
860,500 2,446,845 -- -- -- 24,497,761 --
34,184 26,313 80,176 39,606 155,293 339,028 2,237
-- -- -- -- -- -- --
962,760 32,572 36,521 18,475 217,387 3,291,246 7,384
------------- ------------ ------------- ------------- ------------- -------------- -------------
3,551,075 3,754,413 913,459 945,267 372,680 31,589,545 385,085
------------- ------------ ------------- ------------- ------------- -------------- -------------
$ 122,836,288 $ 94,739,384 $ 284,495,026 $ 139,320,762 $ 546,710,142 $1,237,336,283 $ 18,436,825
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
$ 498,288 $ 978,978 $ 2,367,533 $ 1,106,561 $ 54,669,860 $ 6,236,165 $ 244,803
95,500,964 95,128,336 261,884,780 126,019,324 492,028,742 886,165,592 30,560,818
853,551 706,785 1,575,239 831,371 -- 16,248,477 171,216
18,174,820 (3,942,622) 8,992,968 4,749,462 -- 138,031,201 (12,117,924)
7,808,665 1,867,907 9,674,506 6,614,044 11,540 190,654,848 (422,088)
------------- ------------ ------------- ------------- ------------- -------------- -------------
$ 122,836,288 $ 94,739,384 $ 284,495,026 $ 139,320,762 $ 546,710,142 $1,237,336,283 $ 18,436,825
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
4,982,884 9,789,784 23,675,326 11,065,606 546,698,602 62,361,655 2,448,035
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
$ 24.65 $ 9.68 $ 12.02 $ 12.59 $ 1.00 $ 19.84 $ 7.53
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
$ 116,207,036 $ 93,541,253 $ 270,056,124 $ 130,851,436 $ 545,581,139 $1,066,653,044 $ 18,000,677
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
100,000,000 100,000,000 100,000,000 100,000,000 2,000,000,000 300,000,000 100,000,000
------------- ------------ ------------- ------------- ------------- -------------- -------------
------------- ------------ ------------- ------------- ------------- -------------- -------------
</TABLE>
59
<PAGE> 61
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Operations for the Year Ended December 31, 1993
================================================================================
<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*.............. $ 2,214,744 $ 456,734 $ 1,998,347
Dividends*............................................................. 844,191 3,324,851 1,632,431
Other income........................................................... -- -- --
----------- ------------ ------------
Total income......................................................... 3,058,935 3,781,585 3,630,778
----------- ------------ ------------
EXPENSES:
Investment advisory fees (Note 2)...................................... 242,309 693,049 324,700
Transfer agent fees (Note 2)........................................... 5,000 5,000 5,000
Printing and shareholder reports....................................... -- -- --
Custodian fees......................................................... 20,447 39,180 65,367
Professional fees...................................................... 5,555 9,505 5,626
Registration fees (Note 1d)............................................ 5,154 -- 1,014
Directors' fees and expenses........................................... 490 1,926 634
Accounting services (Note 2)........................................... 38,771 36,829 37,459
Pricing services....................................................... 1,490 1,290 8,155
Other.................................................................. 535 1,384 1,929
----------- ------------ ------------
Total expenses before reimbursement.................................... 319,751 788,163 449,884
Reimbursement of expenses (Note 2)..................................... -- -- (13,194)
----------- ------------ ------------
Expenses after reimbursement........................................... 319,751 788,163 436,690
----------- ------------ ------------
Investment income -- net............................................... 2,739,184 2,993,422 3,194,088
----------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS -- NET (NOTES 1C, 1E & 3):
Realized gain (loss) on investments -- net............................. 1,294,829 22,655,800 2,702,083
Realized gain (loss) on foreign currency transactions -- net........... -- (69,431) 242,923
Change in unrealized appreciation/depreciation on investments -- net... 5,063,435 7,733,392 12,963,335
Change in unrealized appreciation/depreciation on foreign currency
transactions -- net.................................................. -- (493) (6,183)
----------- ------------ ------------
Total realized and unrealized gain on investments and foreign currency
transactions -- net.................................................. 6,358,264 30,319,268 15,902,158
----------- ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $ 9,097,448 $ 33,312,690 $ 19,096,246
----------- ------------ ------------
----------- ------------ ------------
*Net of withholding tax on dividends/interest.......................... $ -- $ 84,958 $ 148,323
----------- ------------ ------------
----------- ------------ ------------
</TABLE>
See Notes to Financial Statements.
60
<PAGE> 62
- --------------------------------------------------------------------------------
================================================================================
<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>
---------------------------------------------------------------------------------------------------------------
$ 550,823 $ 8,613,345 $18,963,058 $ 9,680,786 $ 19,833,824 $ 24,764,544 $ 35,905
1,543,370 76,268 -- -- -- 13,608,423 326,176
149,230 13,165 279,330 77,758 -- 4,835 --
------------ ------------ ------------ ------------ ------------ ------------- --------
2,243,423 8,702,778 19,242,388 9,758,544 19,833,824 38,377,802 362,081
------------ ------------ ------------ ------------ ------------ ------------- --------
430,352 272,599 943,199 461,498 1,955,347 3,881,854 47,974
5,000 5,000 5,000 5,000 5,000 5,000 5,000
-- -- -- -- 246 -- --
25,751 21,176 26,754 16,477 60,360 250,242 9,019
7,518 6,533 8,592 8,210 29,616 32,487 2,976
1,447 4,089 38 18 86 157 1
1,146 568 2,365 1,093 5,717 10,017 39
20,792 40,638 31,452 22,740 34,222 54,061 20,053
-- 2,371 6,140 10,932 -- 4,889 --
2,265 1,635 2,585 1,055 5,559 11,814 74
------------ ------------ ----------- ------------ ------------ ------------- --------
494,271 354,609 1,026,125 527,023 2,096,153 4,250,521 85,136
-- -- -- -- -- -- (12,709)
------------ ------------ ----------- ------------ ------------ ------------- --------
494,271 354,609 1,026,125 527,023 2,096,153 4,250,521 72,427
------------ ------------ ----------- ------------ ------------ ------------- --------
1,749,152 8,348,169 18,216,263 9,231,521 17,737,671 34,127,281 289,654
------------ ------------ ----------- ------------ ------------ ------------- --------
18,276,850 2,381,169 9,062,256 4,818,952 165,799 135,002,249 536,256
-- -- -- -- -- 3,516,731 (11)
(9,921,076) 2,702,167 2,597,175 2,696,998 (60,196) 9,725,458 (132,511)
-- -- -- -- -- (65,630) (11)
------------ ------------ ----------- ------------ ------------ ------------- --------
8,355,774 5,083,336 11,659,431 7,515,950 105,603 148,178,808 403,723
------------ ------------ ----------- ------------ ------------ ------------- --------
$ 10,104,926 $ 13,431,505 $29,875,694 $ 16,747,471 $ 17,843,274 $ 182,306,089 $693,377
------------ ------------ ----------- ------------ ------------ ------------- --------
------------ ------------ ----------- ------------ ------------ ------------- --------
$ 3,795 $ -- $ -- $ -- $ -- $ 476,012 $ 9,270
------------ ------------ ----------- ------------ ------------ ------------- --------
------------ ------------ ----------- ------------ ------------ ------------- --------
</TABLE>
61
<PAGE> 63
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
BALANCED PORTFOLIO CAPITAL STOCK PORTFOLIO
-------------------------------- --------------------------------
FOR THE YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
-------------------------------- --------------------------------
INCREASE (DECREASE) IN NET ASSETS: 1993 1992 1993 1992
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income -- net..................... $ 2,739,184 $ 2,017,103 $ 2,993,422 $ 3,442,597
Realized gain (loss) on investments and
foreign currency transactions -- net....... 1,294,829 762,076 22,586,369 8,742,905
Change in unrealized
appreciation/depreciation on
investments -- net......................... 5,063,435 510,940 7,733,392 (7,300,893)
Change in unrealized
appreciation/depreciation on foreign
currency transactions -- net............... -- -- (493) 25
------------ ------------ ----------- ------------
Net increase in net assets resulting from
operations................................. 9,097,448 3,290,119 33,312,690 4,884,634
------------ ------------ ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1F):
Investment income -- net..................... (3,304,634) (794,365) (5,214,104) (1,590,297)
Realized gain on investments -- net.......... (756,576) (562,899) (5,596,154) (4,063,682)
------------ ----------- ----------- ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (4,061,210) (1,357,264) (10,810,258) (5,653,979)
------------ ----------- ------------- ------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ 26,902,003 16,019,456 (948,421) 25,581,934
------------ ------------ ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... 31,938,241 17,952,311 21,554,011 24,812,589
Beginning of year............................ 56,080,103 38,127,792 202,416,868 177,604,279
------------ ------------ ------------ ------------
End of year*................................. $ 88,018,344 $ 56,080,103 $223,970,879 $202,416,868
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*Undistributed investment income -- net...... $ 1,451,652 $ 2,017,102 $ 1,232,859 $ 3,453,541
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See Notes to Financial Statements.
62
<PAGE> 64
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
GLOBAL STRATEGY PORTFOLIO GROWTH STOCK PORTFOLIO HIGH YIELD PORTFOLIO
------------------------------ ------------------------------- -----------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------------------------ ------------------------------- -----------------------------
1993 1992 1993 1992 1993 1992
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
$ 3,194,088 $ 1,637,375 $ 1,749,152 $ 1,498,360 $ 8,348,169 $ 7,216,061
2,945,006 702,578 18,276,850 12,913,278 2,381,169 1,234,233
12,963,335 (1,162,690) (9,921,076) (10,647,807) 2,702,167 2,988,817
(6,183) (8,433) -- -- -- --
------------ ----------- ------------ ------------ ----------- -----------
19,096,246 1,168,830 10,104,926 3,763,831 13,431,505 11,439,111
------------ ----------- ------------ ------------ ----------- -----------
(2,745,665) (450,514) (2,393,959) (600,992) (8,491,599) (6,884,110)
(722,008) (362,601) (5,017,036) -- -- --
------------ ----------- ------------ ------------ ----------- -----------
(3,467,673) (813,115) (7,410,995) (600,992) (8,491,599) (6,884,110)
------------ ----------- ------------ ------------ ----------- -----------
114,444,001 22,350,551 (18,919,845) 22,184,788 21,765,864 12,406,500
------------ ----------- ------------ ------------ ----------- -----------
130,072,574 22,706,266 (16,225,914) 25,347,627 26,705,770 16,961,501
52,599,470 29,893,204 139,062,202 113,714,575 68,033,614 51,072,113
------------ ----------- ------------ ------------ ----------- -----------
$182,672,044 $52,599,470 $122,836,288 $139,062,202 $94,739,384 $68,033,614
------------ ----------- ------------ ------------ ----------- -----------
------------ ----------- ------------ ------------ ----------- -----------
$ 2,060,075 $ 1,611,652 $ 853,551 $ 1,498,358 $ 706,785 $ 850,215
------------ ----------- ------------ ------------ ----------- -----------
------------ ----------- ------------ ------------ ----------- -----------
</TABLE>
63
<PAGE> 65
- --------------------------------------------------------------------------------
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 YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
-------------------------------- -------------------------------
INCREASE (DECREASE) IN NET ASSETS: 1993 1992 1993 1992
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income -- net..................... $ 18,216,263 $ 18,625,540 $ 9,231,521 $ 9,562,012
Realized gain (loss) on investments and
foreign currency transactions -- net....... 9,062,256 6,999,297 4,818,952 3,446,389
Change in unrealized
appreciation/depreciation on investments
and call
options written -- net..................... 2,597,175 (7,712,657) 2,696,998 (3,341,515)
Change in unrealized
appreciation/depreciation on foreign
currency transactions -- net............... -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations................................. 29,875,694 17,912,180 16,747,471 9,666,886
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1F):
Investment income -- net..................... (18,258,239) (18,699,652) (9,257,762) (9,648,937)
Realized gain on investments -- net.......... (5,079,232) -- (1,644,495) --
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (23,337,471) (18,699,652) (10,902,257) (9,648,937)
------------ ------------ ------------ -------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ 8,702,535 8,607,584 6,611,403 (1,549,642)
------------ ------------ ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... 15,240,758 7,820,112 12,456,617 (1,531,693)
Beginning of year............................ 269,254,268 261,434,156 126,864,145 128,395,838
------------ ------------ ------------ ------------
End of year*................................. $284,495,026 $269,254,268 $139,320,762 $126,864,145
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*Undistributed investment income -- net...... $ 1,575,239 $ 1,547,969 $ 831,371 $ 785,876
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
+Includes unrealized appreciation/depreciation.
See Notes to Financial Statements.
64
<PAGE> 66
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
MONEY RESERVE PORTFOLIO MULTIPLE STRATEGY PORTFOLIO NATURAL RESOURCES PORTFOLIO
--------------------------------- --------------------------------- -----------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
--------------------------------- --------------------------------- -----------------------------
1993 1992 1993 1992 1993 1992
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
$ 17,737,671 $ 26,097,812 $ 34,127,281 $ 36,974,001 $ 289,654 $ 244,264
165,799 1,228,966 138,518,980 55,323,117 536,245 (297,262)
(60,196) (353,487) 9,725,458 (45,201,181) (132,511) 185,506
-- -- (65,630) (103,452) (11) 11
-------------- -------------- -------------- -------------- ----------- -----------
17,843,274 26,973,291 182,306,089 46,992,485 693,377 132,519
------------- -------------- -------------- -------------- ----------- -----------
(17,737,671) (26,097,812) (54,486,771) (19,892,553) (362,042) (134,606)
(165,799) (803,743)+ (49,964,250) (5,030,454) -- --
------------- -------------- -------------- -------------- ----------- -----------
(17,903,470) (26,901,555) (104,451,021) (24,923,007) (362,042) (134,606)
------------- -------------- -------------- -------------- ----------- -----------
(100,419,340) (150,902,549) 22,458,998 (37,442,033) 10,118,313 (40,350)
------------- -------------- -------------- -------------- ----------- -----------
(100,479,536) (150,830,813) 100,314,066 (15,372,555) 10,449,648 (42,437)
647,189,678 798,020,491 1,137,022,217 1,152,394,772 7,987,177 8,029,614
------------- -------------- -------------- -------------- ----------- -----------
$ 546,710,142 $ 647,189,678 $1,237,336,283 $1,137,022,217 $18,436,825 $ 7,987,177
------------- -------------- -------------- -------------- ----------- -----------
------------- -------------- -------------- -------------- ----------- -----------
$ -- $ -- $ 16,248,477 $ 36,605,194 $ 171,216 $ 243,604
------------- -------------- -------------- -------------- ----------- -----------
------------- -------------- -------------- -------------- ----------- -----------
</TABLE>
65
<PAGE> 67
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
----------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1993 1992 1991 1990 1989
<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 year...................... $ 13.70 $ 13.29 $ 11.78 $ 12.25 $ 10.59
-------- -------- -------- -------- --------
Investment income -- net................................ .50 .47 .60 .64 .48
Realized and unrealized gain (loss) on investments and
foreign currency transactions -- net (1).............. 1.35 .38 1.77 (.47) 1.66
-------- -------- -------- -------- --------
Total from investment operations........................ 1.85 .85 2.37 .17 2.14
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income -- net................................ (.75) (.26) (.68) (.56) (.48)
Realized gain on investments -- net..................... (.18) (.18) (.18) (.08) --
-------- -------- -------- -------- --------
Total dividends and distributions....................... (.93) (.44) (.86) (.64) (.48)
-------- -------- -------- -------- --------
Net asset value, end of year............................ $ 14.62 $ 13.70 $ 13.29 $ 11.78 $ 12.25
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN:*
Based on net asset value per share...................... 14.31% 6.67% 20.95% 1.57% 20.75%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement.......................... .43% .48% .50% .50% .50%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Expenses................................................ .43% .48% .50% .50% .66%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Investment income -- net................................ 3.72% 4.40% 4.91% 5.56% 5.58%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands).................. $ 88,018 $ 56,080 $ 38,128 $ 29,065 $ 27,936
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Portfolio turnover...................................... 25.38% 33.15% 58.77% 26.84% 48.43%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
- ------------
* Total investment returns exclude the effects of sales loads.
(1) Foreign currency transaction amounts have been reclassified to conform to
the 1993 presentation.
See Notes to Financial Statements.
66
<PAGE> 68
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
CAPITAL STOCK PORTFOLIO GLOBAL STRATEGY PORTFOLIO
----------------------------------------------------------------- ------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------- ------------------------------------------------
1993 1992 1991 1990 1989 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
$ 23.22 $ 23.39 $ 19.65 $ 20.19 $ 16.07 $ 13.23 $ 13.16 $ 12.00 $ 11.68
--------- --------- --------- --------- --------- --------- -------- -------- --------
.33 .39 .45 .54 .61 .36 .39 .41 .82
3.41 .16 4.97 (.44) 4.16 2.61 (.01) 1.60 (.14)
--------- --------- --------- --------- --------- --------- -------- -------- --------
3.74 .55 5.42 .10 4.77 2.97 .38 2.01 .68
--------- --------- --------- --------- --------- --------- -------- -------- --------
(.59) (.20) (.54) (.52) (.65) (.60) (.17) (.85) (.36)
(.64) (.52) (1.14) (.12) -- (.18) (.14) -- --
--------- --------- --------- --------- --------- --------- -------- -------- --------
(1.23) (.72) (1.68) (.64) (.65) (.78) (.31) (.85) (.36)
--------- --------- --------- --------- --------- --------- -------- -------- --------
$ 25.73 $ 23.22 $ 23.39 $ 19.65 $ 20.19 $ 15.42 $ 13.23 $ 13.16 $ 12.00
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
17.01% 2.47% 29.05% 0.61% 30.20% 23.73% 3.00% 17.50% 6.01%
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
.38% .41% .40% .40% .41% .45% .50% .50% .50%
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
.38% .41% .40% .40% .41% .46% .54% .60% .61%
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
1.43% 1.89% 2.27% 2.66% 3.45% 3.27% 3.84% 3.86% 8.03%
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
$ 223,971 $ 202,417 $ 177,604 $ 128,511 $ 137,705 $ 182,672 $ 52,599 $ 29,893 $ 22,087
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
100.12% 74.89% 63.90% 61.76% 55.41% 30.53% 43.56% 93.85% 104.19%
--------- --------- --------- --------- --------- --------- -------- -------- --------
--------- --------- --------- --------- --------- --------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
1989
--------
<S> <C>
$ 10.41
--------
.38
1.41
--------
1.79
--------
(.52)
--
--------
(.52)
--------
$ 11.68
--------
--------
17.76%
--------
--------
.50%
--------
--------
.75%
--------
--------
4.07%
--------
--------
$ 13,215
--------
--------
80.25%
--------
--------
</TABLE>
67
<PAGE> 69
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
================================================================================
<TABLE>
<CAPTION>
GROWTH STOCK PORTFOLIO
----------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1993 1992 1991 1990 1989
<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 year.................. $ 23.98 $ 23.31 $ 16.28 $ 18.95 $ 15.57
-------- -------- -------- -------- --------
Investment income -- net............................ .32 .26 .25 .29 .30
Realized and unrealized gain (loss) on investments
and foreign currency transactions -- net (1)...... 1.63 .53 7.06 (2.63) 3.30
-------- -------- -------- -------- --------
Total from investment operations.................... 1.95 .79 7.31 (2.34) 3.60
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income -- net............................ (.41) (.12) (.28) (.33) (.22)
Realized gain on investments -- net................. (.87) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions................... (1.28) (.12) (.28) (.33) (.22)
-------- -------- -------- -------- --------
Net asset value, end of year........................ $ 24.65 $ 23.98 $ 23.31 $ 16.28 $ 18.95
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN:*
Based on net asset value per share.................. 8.63% 3.40% 45.31% (12.41%) 23.20%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement...................... .38% .42% .42% .43% .42%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Expenses............................................ .38% .42% .42% .43% .42%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Investment income -- net............................ 1.35% 1.32% 1.56% 1.43% 1.69%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands).............. $122,836 $139,062 $113,715 $ 52,086 $ 79,109
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Portfolio turnover.................................. 160.29% 87.25% 60.48% 94.54% 78.87%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
- ------------
* Total investment returns exclude the effects of sales loads.
(1) Foreign currency transaction amounts have been reclassified to conform to
the 1993 presentation.
See Notes to Financial Statements.
68
<PAGE> 70
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
HIGH YIELD PORTFOLIO
----------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C>
----------------------------------------------------------------
$ 9.10 $ 8.44 $ 6.98 $ 8.92 $ 9.66
-------- -------- -------- -------- --------
.94 1.03 1.02 1.24 1.20
.62 .64 1.47 (1.94) (.73)
-------- -------- -------- -------- --------
1.56 1.67 2.49 (.70) .47
-------- -------- -------- -------- --------
(.98) (1.01) (1.03) (1.24) (1.21)
-- -- -- -- --
-------- -------- -------- -------- --------
(.98) (1.01) (1.03) (1.24) (1.21)
-------- -------- -------- -------- --------
$ 9.68 $ 9.10 $ 8.44 $ 6.98 $ 8.92
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
18.11% 20.63% 37.77% (8.83%) 5.08%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
.43% .44% .46% .45% .44%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
.43% .44% .46% .45% .44%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
10.17% 11.45% 12.74% 14.93% 12.64%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
$ 94,739 $ 68,034 $ 51,072 $ 34,673 $ 58,910
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
73.01% 83.95% 76.34% 31.01% 70.43%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
69
<PAGE> 71
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------------------
1993 1992 1991 1990 1989
<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 year................ $ 11.75 $ 11.79 $ 11.04 $ 11.02 $ 10.58
--------- --------- --------- --------- ----------
Investment income -- net.......................... .83 .83 .86 .92 .92
Realized and unrealized gain (loss) on investments
and foreign currency transactions -- net (1).... .50 (.04) .76 .01 .44
Total from investment operations.................. 1.33 .79 1.62 .93 1.36
--------- --------- --------- --------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS:
Investment income -- net.......................... (.84) (.83) (.87) (.91) (.92)
Realized gain on investments -- net............... (.22) -- -- -- --
--------- --------- --------- --------- ----------
Total dividends and distributions................. (1.06) (.83) (.87) (.91) (.92)
--------- --------- --------- --------- ----------
Net asset value, end of year...................... $ 12.02 $ 11.75 $ 11.79 $ 11.04 $ 11.02
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
TOTAL INVESTMENT RETURN:*
Based on net asset value per share................ 11.20% 7.03% 15.57% 8.98% 13.46%
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... .36% .40% .39% .40% .41%
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
Investment income -- net.......................... 6.42% 7.03% 7.82% 8.50% 8.53%
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
Investment income -- net and realized gain (loss) on
investments -- net.............................. -- -- -- -- --
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)............ $ 284,495 $ 269,254 $ 261,434 $ 231,672 $ 224,531
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
Portfolio turnover................................ 113.61% 80.54% 138.41% 129.98% 227.15%
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
</TABLE>
- ------------
* Total investment returns exclude the effects of sales loads.
(1) Foreign currency transaction amounts have been reclassified to conform to
the 1993 presentation.
See Notes to Financial Statements.
70
<PAGE> 72
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
LONG TERM CORPORATE BOND PORTFOLIO MONEY RESERVE PORTFOLIO
----------------------------------------------------------------- ---------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------- ---------------------------------------------------
1993 1992 1991 1990 1989 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
$ 12.07 $ 12.06 $ 11.21 $ 11.36 $ 10.91 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- --------- --------- --------- ---------
.83 .90 .96 .98 1.00 .03 .04 .06 .08
.68 .02 .85 (.15) .45 -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------- ---------
1.51 .92 1.81 .83 1.45 .03 .04 .06 .08
--------- --------- --------- --------- --------- --------- --------- --------- ---------
(.83) (.91) (.96) (.98) (1.00) (.03) (.04) (.06) (.08)
(.16) -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------- ---------
(.99) (.91) (.96) (.98) (1.00) (.03) (.04) (.06) (.08)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 12.59 $ 12.07 $ 12.06 $ 11.21 $ 11.36 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
13.01% 8.05% 17.01% 7.83% 13.96% 3.08% 3.77% 6.11% 8.26%
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
.38% .43% .42% .43% .44% .36% .39% .38% .39%
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
6.65% 7.51% 8.35% 8.81% 9.01% -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
-- -- -- -- -- 3.03% 3.77% 5.97% 7.92%
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 139,321 $ 126,864 $ 128,396 $ 119,237 $ 126,655 $ 546,710 $ 647,190 $ 798,020 $ 935,463
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
110.53% 93.10% 124.58% 107.36% 138.89% -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
<CAPTION>
1989
---------
<S> <C>
$ 1.00
---------
.09
--
---------
.09
---------
(.09)
--
---------
(.09)
---------
$ 1.00
---------
---------
9.30%
---------
---------
.38%
---------
---------
--
---------
---------
8.93%
---------
---------
$ 816,661
---------
---------
--
---------
---------
</TABLE>
71
<PAGE> 73
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Concluded)
================================================================================
<TABLE>
<CAPTION>
MULTIPLE STRATEGY PORTFOLIO
--------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1993 1992 1991 1990 1989
<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 year........ $ 18.70 $ 18.32 $ 15.45 $ 15.56 $ 13.64
---------- ---------- ---------- ---------- ----------
Investment income -- net.................. .54 .61 .72 .99 .79
Realized and unrealized gain (loss) on
investments and foreign currency
transactions -- net (1)................. 2.30 .17 3.13 (.27) 2.02
---------- ---------- ---------- ---------- ----------
Total from investment operations.......... 2.84 .78 3.85 .72 2.81
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income -- net.................. (.88) (.32) (.98) (.83) (.89)
Realized gain on investments -- net....... (.82) (.08) -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions......... (1.70) (.40) (.98) (.83) (.89)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year.............. $ 19.84 $ 18.70 $ 18.32 $ 15.45 $ 15.56
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENT RETURN:*
Based on net asset value per share........ 16.66% 4.35% 25.97% 4.91% 21.31%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement............ .36% .40% .39% .41% .39%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Expenses.................................. .36% .40% .39% .41% .39%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Investment income -- net.................. 2.91% 3.26% 4.17% 6.07% 5.15%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands).... $1,237,336 $1,137,022 $1,152,395 $1,018,054 $1,163,578
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Portfolio turnover........................ 91.08% 67.71% 95.48% 106.39% 142.47%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
</TABLE>
- ------------
* Total investment returns exclude the effects of sales loads.
(1) Foreign currency transaction amounts have been reclassified to conform to
the presentation.
See Notes to Financial Statements.
72
<PAGE> 74
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
NATURAL RESOURCES PORTFOLIO
---------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C>
---------------------------------------------------------------
$ 7.01 $ 7.04 $ 7.18 $ 7.84 $ 6.43
-------- -------- -------- -------- -------
.13 .21 .27 .21 .19
.66 (.12) (.14) (.69) 1.41
-------- -------- -------- -------- -------
.79 .09 .13 (.48) 1.60
-------- -------- -------- -------- -------
(.27) (.12) (.27) (.18) (.19)
-- -- -- -- --
-------- -------- -------- -------- -------
(.27) (.12) (.27) (.18) (.19)
-------- -------- -------- -------- -------
$ 7.53 $ 7.01 $ 7.04 $ 7.18 $ 7.84
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
11.65% 1.35% 1.67% (6.18%) 25.23%
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
.50% .50% .50% .50% .50%
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
.59% .82% .74% .63% .64%
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
2.00% 2.84% 3.12% 2.76% 2.81%
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
$ 18,437 $ 7,987 $ 8,030 $ 11,256 $13,405
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
65.26% 32.14% 30.20% 56.60% 113.38%
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
</TABLE>
73
<PAGE> 75
- --------------------------------------------------------------------------------
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 investment management 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.) and Monarch Life Insurance Company (an insurance company not
affiliated with Merrill Lynch & Co., Inc.) 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--All 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. 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 mean between closing
bid and asked prices. Securities other than money market securities traded in
the over-the-counter market are valued at the mean between the bid and asked
prices 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 Fund is 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
74
<PAGE> 76
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
================================================================================
valued at the exchange rate at the end of the period. Foreign currency
transactions are the result of settling (realized) or valuing (unrealized) such
transactions 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 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 1992 amounts have been reclassified to conform to
the 1993 presentation.
2. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH AFFILIATES:
The Fund has entered into an Investment Advisory Agreement with Merrill Lynch
Asset Management ("MLAM"). MLAM is the name under which Merrill Lynch Investment
Management, Inc. ("MLIM") does business. MLIM is an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. 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.
Effective January 1, 1994, the investment advisory business of MLAM was
reorganized from a corporation to a limited partnership. The general partner of
MLAM is Princeton Services, Inc., an indirect wholly-owned subsidiary of Merrill
Lynch & Co. The limited partners are Merrill Lynch & Co. and MLIM.
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
75
<PAGE> 77
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
================================================================================
$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 year ended December 31, 1993, MLAM earned fees of $324,700,
of which $13,194 was reimbursed for the Global Strategy Portfolio and earned
fees of $47,974 of which $12,709 was reimbursed for the Natural Resources
Portfolio.
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S"), an affiliate of MLIM,
earned commissions on the execution of portfolio security transactions
aggregating $41,142 in the Capital Stock Portfolio, $49,283 in the Global
Strategy Portfolio, $9,280 in the Growth Stock Portfolio, $122,414 in the
Multiple Strategy Portfolio, and $3,157 in the Natural Resources Portfolio.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of Merrill
Lynch & Co., Inc., is the Fund's transfer agent.
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 Merrill Lynch & Co., Inc.
3. INVESTMENTS:
Purchases and sales of investments, excluding short-term securities, for the
year ended December 31, 1993 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........ $ 38,055,046 $ 198,272,045 $ 113,832,666 $ 179,914,770 $ 76,333,588 $ 316,382,784
------------ ------------- ------------- ------------- ------------ -------------
------------ ------------- ------------- ------------- ------------ -------------
Total Sales............ $ 16,850,271 $ 210,049,135 $ 26,862,807 $ 204,130,845 $ 55,739,736 $ 308,076,729
------------ ------------- ------------- ------------- ------------ -------------
------------ ------------- ------------- ------------- ------------ -------------
<CAPTION>
LONG TERM
CORPORATE MULTIPLE NATURAL
BOND STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------
Total Purchases........ $ 148,649,325 $ 919,429,015 $ 16,052,529
------------- -------------- ------------
------------- -------------- ------------
Total Sales............ $ 145,064,558 $1,034,082,678 $ 8,506,203
<S> <C> <C> <C>
------------- -------------- ------------
------------- -------------- ------------
</TABLE>
76
<PAGE> 78
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
================================================================================
In the Capital Stock Portfolio, transactions in call options written for the
year ended December 31, 1993 were as follows:
<TABLE>
<CAPTION>
NUMBER OF
SHARES
CALL OPTIONS COVERED PREMIUMS
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Outstanding options at beginning of year................................................ -- --
Options written......................................................................... 18,000 $ 43,850
Options exercised....................................................................... (13,000) (32,202)
Options expired......................................................................... (5,000) (11,648)
-------- ---------
Outstanding options at end of year...................................................... -- $ --
-------- ---------
-------- ---------
</TABLE>
As of December 31, 1993, unrealized appreciation/depreciation for Federal income
tax purposes was as follows:
<TABLE>
<CAPTION>
CAPITAL GLOBAL GROWTH
BALANCED STOCK STRATEGY STOCK HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Appreciated securities.................... $ 9,665,855 $ 43,425,341 $ 17,875,816 $ 10,967,217 $ 4,936,513
Depreciated securities.................... (134,951) (2,657,552) (3,140,900) (3,158,552) (3,069,543)
------------- ------------- ------------- ------------- -------------
Net unrealized
appreciation/depreciation............... $ 9,530,904 $ 40,767,789 $ 14,734,916 $ 7,808,665 $ 1,866,970
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
Cost of Federal income tax purposes....... $ 77,546,928 $ 184,555,904 $ 164,411,080 $ 116,207,036 $ 93,542,190
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
GOVERNMENT CORPORATE MONEY MULTIPLE NATURAL
BOND BOND RESERVE STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Appreciated securities.................. $ 10,722,129 $ 6,980,056 $ 83,729 $ 205,133,386 $ 406,224
Depreciated securities.................. (1,047,623) (366,012) (72,189) (14,391,186) (828,312)
------------- ------------- ------------- -------------- -------------
Net unrealized
appreciation/depreciation............. $ 9,674,506 $ 6,614,044 $ 11,540 $ 190,742,200 $ (422,088)
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
Cost of Federal income tax purposes..... $ 270,056,124 $ 130,851,436 $ 545,581,139 $1,066,653,044 $ 18,000,677
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
</TABLE>
77
<PAGE> 79
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
================================================================================
Net realized and unrealized gains (losses) as of December 31, 1993 were as
follows:
<TABLE>
<CAPTION>
BALANCED CAPITAL STOCK
PORTFOLIO PORTFOLIO GLOBAL STRATEGY
-------------------------- --------------------------- PORTFOLIO
REALIZED REALIZED UNREALIZED ---------------------------
GAINS UNREALIZED GAINS GAINS REALIZED UNREALIZED
(LOSSES) GAINS (LOSSES) (LOSSES) GAINS GAINS
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Long-term investments....... $ 1,294,964 $ 9,532,275 $ 22,644,368 $ 40,767,789 $ 2,702,083 $ 14,734,916
Short-term investments...... (135) -- (215) -- -- --
Options..................... -- 11,647 -- -- --
Foreign currency
transactions............... -- -- (69,431) (468) 242,923 (13,603)
----------- ------------ ------------ ------------ ------------ ------------
Total....................... $ 1,294,829 $ 9,532,275 $ 22,586,369 $ 40,767,321 $ 2,945,006 $ 14,721,313
----------- ------------ ------------ ------------ ------------ ------------
----------- ------------ ------------ ------------ ------------ ------------
<CAPTION>
GROWTH STOCK HIGH YIELD
PORTFOLIO PORTFOLIO
------------------------- -------------------------
REALIZED REALIZED
GAINS UNREALIZED GAINS UNREALIZED
(LOSSES) GAINS (LOSSES) GAINS
<S> <C> <C> <C> <C>
- ----------------------------
Long-term investments.......$18,277,884 $7,808,665 $ 2,381,283 $1,867,907
Short-term investments...... (1,034) -- (114) --
Options..................... -- -- -- --
Foreign currency
transactions............... -- -- -- --
----------- ---------- ----------- ----------
Total.......................$18,276,850 $7,808,665 $ 2,381,169 $1,867,907
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
CAPITAL STOCK
BALANCED PORTFOLIO PORTFOLIO
-------------------------- ---------------------------
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1993 SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold...................................... 2,187,445 $ 30,842,402 2,648,003 $ 61,600,015
Shares issued to shareholders in reinvestment of
dividends and distributions..................... 305,371 4,061,210 487,302 10,810,258
----------- ------------ ----------- -------------
Total issued..................................... 2,492,816 34,903,612 3,135,305 72,410,273
Shares redeemed.................................. (567,022) (8,001,609) (3,146,632) (73,358,694)
----------- ------------ ----------- -------------
Net increase (decrease).......................... 1,925,794 $ 26,902,003 (11,327) $ (948,421)
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
<CAPTION>
GLOBAL STRATEGY PORTFOLIO GROWTH STOCK PORTFOLIO
----------------------------- ---------------------------
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1993 SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------- ------------ ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold...................................... 9,185,981 $ 133,326,793 2,765,508 $ 63,983,886
Shares issued to shareholders in reinvestment of
dividends and distributions..................... 266,275 3,467,673 326,625 7,410,995
------------ ------------- ----------- -------------
Total issued..................................... 9,452,256 136,794,466 3,092,133 71,394,881
Shares redeemed.................................. (1,577,997) (22,350,465) (3,907,138) (90,314,726)
------------ ------------- ----------- -------------
Net increase (decrease).......................... 7,874,259 $ 114,444,001 (815,005) $ (18,919,845)
------------ ------------- ----------- -------------
------------ ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1992 SHARES AMOUNT SHARES AMOUNT SHARES
- ---------------------------------------------------- ----------- ------------ ----------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Shares sold......................................... 1,722,366 $ 22,542,311 2,743,359 $ 61,172,758 2,425,328
Shares issued to shareholders in reinvestment of
dividends and distributions........................ 106,452 1,357,264 253,201 5,653,979 63,376
----------- ------------ ----------- ------------- ---------
Total issued........................................ 1,828,818 23,899,575 2,996,560 66,826,737 2,488,704
Shares redeemed..................................... (604,693) (7,880,119) (1,873,219) (41,244,803) (784,429)
----------- ------------ ----------- ------------- ---------
Net increase (decrease)............................. 1,224,125 $ 16,019,456 1,123,341 $ 25,581,934 1,704,275
----------- ------------ ----------- ------------- ---------
----------- ------------ ----------- ------------- ---------
<CAPTION>
FOR THE YEAR ENDED DOLLAR DOLLAR
DECEMBER 31, 1992 AMOUNT SHARES AMOUNT
- ---------------------------------------------------- ------------- ----------- -------------
<S> <C> <C> <C>
Shares sold......................................... $ 31,779,404 4,064,175 $ 91,226,086
Shares issued to shareholders in reinvestment of
dividends and distributions........................ 813,115 26,452 600,992
------------- ----------- -------------
Total issued........................................ 32,592,519 4,090,627 91,827,078
Shares redeemed..................................... (10,241,968) (3,170,056) (69,642,290)
------------- ----------- -------------
Net increase (decrease)............................. $ 22,350,551 920,571 $ 22,184,788
------------- ----------- -------------
------------- ----------- -------------
</TABLE>
78
<PAGE> 80
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
GOVERNMENT CORPORATE MONEY RESERVE
BOND PORTFOLIO BOND PORTFOLIO PORTFOLIO
--------------------------- --------------------------- ------------------------
REALIZED UNREALIZED REALIZED UNREALIZED REALIZED UNREALIZED
GAINS GAINS GAINS GAINS GAINS GAINS
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
$ 9,062,256 $9,674,506 $ 4,818,952 $6,614,044 -- --
-- -- -- $ 165,799 $ 11,540
-- -- -- -- --
-- -- -- -- --
----------- ----------- ----------- ----------- --------- --------
$ 9,062,256 $9,674,506 $ 4,818,952 $6,614,044 $ 165,799 $ 11,540
----------- ----------- ----------- ----------- --------- --------
----------- ----------- ----------- ----------- --------- --------
<CAPTION>
MULTIPLE STRATEGY NATURAL RESOURCES
PORTFOLIO PORTFOLIO
----------------------------- ------------------------
GAINS GAINS GAINS UNREALIZED
(LOSSES) (LOSSES) (LOSSES) LOSSES
<S> <C> <C> <C>
-----------------------------------------------------------
$135,003,348 $ 190,742,200 $ 536,304 $(422,088)
(1,099) -- (48) --
-- -- -- --
3,516,731 (87,352) (11) --
------------ ------------- --------- ---------
$138,518,980 $ 190,654,848 $ 536,245 $(422,088)
------------ ------------- --------- ---------
------------ ------------- --------- ---------
</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>
6,585,394 $ 62,046,849 2,029,675 $ 24,294,769 1,569,886 $ 19,535,581
907,939 8,491,599 1,969,544 23,337,471 882,536 10,902,257
---------- ------------ ---------- ------------ ---------- ------------
7,493,333 70,538,448 3,999,219 47,632,240 2,452,422 30,437,838
(5,176,485) (48,772,584) (3,241,514) (38,929,705) (1,897,253) (23,826,435)
---------- ------------ ---------- ------------ ---------- ------------
2,316,848 $ 21,765,864 757,705 $ 8,702,535 555,169 $ 6,611,403
---------- ------------ ---------- ------------ ---------- ------------
---------- ------------ ---------- ------------ ---------- ------------
<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>
159,076,748 $ 159,076,741 1,154,463 $ 21,097,663 4,270,081 $33,052,306
17,903,470 17,903,477 6,022,981 104,451,021 51,252 362,042
----------- ------------- ----------- ------------- ---------- -----------
176,980,218 176,980,218 7,177,444 125,548,684 4,321,333 33,414,348
(277,399,558) (277,399,558) (5,632,176) (103,089,686) (3,013,454) (23,296,035)
------------ ------------ ---------- ------------ ---------- -----------
(100,419,340) $(100,419,340) 1,545,268 $ 22,458,998 1,307,879 $10,118,313
------------ ------------- ---------- ------------ ---------- -----------
------------ ------------- ---------- ------------ ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
DOLLAR DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ----------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
4,629,237 $41,578,702 3,091,994 $35,850,914 1,890,547 $22,559,602 108,278,635 $108,278,635
770,806 6,884,110 1,616,169 18,699,652 813,965 9,648,937 26,901,555 26,901,555
---------- ----------- ---------- ----------- ---------- ----------- ------------ ------------
5,400,043 48,462,812 4,708,163 54,550,566 2,704,512 32,208,539 135,180,190 135,180,190
(3,976,101) (36,056,312) (3,958,250) (45,942,982) (2,837,379) (33,758,181) (286,082,739) (286,082,739)
---------- ----------- ---------- ----------- ---------- ----------- ------------ ------------
1,423,942 $12,406,500 749,913 $ 8,607,584 (132,867) $(1,549,642) (150,902,549) $(150,902,549)
---------- ----------- ---------- ----------- ---------- ----------- ------------ -------------
---------- ----------- ---------- ----------- ---------- ----------- ------------ -------------
<CAPTION>
DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ----------
<S> <C> <C> <C>
1,684,759 $30,314,502 1,125,451 $7,767,245
1,398,597 24,923,007 20,090 134,606
---------- ----------- ---------- ----------
3,083,356 55,237,509 1,145,541 7,901,851
(5,180,175) (92,679,542) (1,145,788) (7,942,201)
---------- ----------- ---------- ----------
(2,096,819) $(37,442,033) (247) $ (40,350)
---------- ----------- ---------- ----------
---------- ----------- ---------- ----------
</TABLE>
79
<PAGE> 81
- --------------------------------------------------------------------------------
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. LOANED SECURITIES:
At December 31, 1993, the Intermediate Government Bond Portfolio held US
Treasury Bills having an aggregate value of approximately $14,271,000 as
collateral for portfolio securities loaned having a market value of
approximately $14,810,000; the Long Term Corporate Bond Portfolio held US
Treasury Notes having an aggregate value of approximately $4,226,000 as
collateral for portfolio securities loaned having a market value of
approximately $4,078,000.
7. SUBSEQUENT EVENT:
On January 3, 1994, the Board of Directors declared dividends and distributions
per share payable on January 3, 1994 to shareholders of record as of December
31, 1993 as follows:
<TABLE>
<CAPTION>
NET INVESTMENT REALIZED
INCOME CAPITAL GAINS
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
FUND
Balanced Portfolio................................................................. $ 0.275988 $0.180308
Capital Stock Portfolio............................................................ 0.133785 2.602735
Global Strategy Portfolio.......................................................... 0.194657 0.227963
Growth Stock Portfolio............................................................. 0.170896 3.647451
High Yield Portfolio............................................................... -- --
Intermediate Government Bond Portfolio............................................. 0.101106 0.295381
Long Term Corporate Bond Portfolio................................................. 0.223845 0.211849
Money Reserve Portfolio............................................................ -- --
Multiple Strategy Portfolio........................................................ 0.317012 2.157007
Natural Resources Portfolio........................................................ 0.069936 --
</TABLE>
80
<PAGE> 82
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Independent Auditors' Report
================================================================================
The Board of Directors and Shareholders,
Merrill Lynch Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Balanced, Capital Stock, Global Strategy,
Growth Stock, High Yield, Intermediate Government Bond, Long Term Corporate
Bond, Money Reserve, Multiple Strategy, and Natural
Resources Portfolios of Merrill Lynch Series Fund, Inc. as of December 31, 1993,
the related statements of operations for the year then ended, and changes in net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the periods presented. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1993 by correspondence with the custodian and brokers or other alternative
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial positions of the Balanced,
Capital Stock, Global Strategy, Growth Stock, High Yield, Intermediate
Government Bond, Long Term Corporate Bond, Money Reserve, Multiple Strategy, and
Natural Resources Portfolios of Merrill Lynch Series Fund, Inc. as of December
31, 1993, the results of their operations, the changes in their net assets, and
the financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche
Princeton, New Jersey
February 23, 1994
81
<PAGE> 83
- --------------------------------------------------------------------------------
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
JOSEPH T. KENNEY-Vice President
VINCENT T. LATHBURY III-Vice President
FREDRIC LUTCHER-Vice President
JACQUELINE ROGERS-Vice President
ALDONA SCHWARTZ-Vice President
WILLIAM WILDE-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
82
<PAGE> 84
(This page has been left blank intentionally.)
<PAGE> 85
51133 REV 2/94
