<PAGE>
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1994 Annual Report
Merrill Lynch Series Fund, Inc.
The Merrill Lynch Fund of Stripped ('Zero')
US Treasury Securities, Series A, B, C, D, E, F, G, H, I, J and K
December 31, 1994
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MERRILL LYNCH SERIES FUND, INC.
ANNUAL REPORT
DECEMBER 31,1994
This report is authorized for distribution only to Policyowners of certain
variable life insurance policies which are funded by shares of the Fund.
This report is not authorized for use as an offer of sale or a solicitation
of an offer to buy shares of the Fund or the policies. Past performance
results shown in this report should not be considered a representation of
future performance. Investment return and principal value of shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. For Money Reserve Portfolio, the Portfolio seeks to
maintain a consistent $1.00 net asset value per share, although this cannot
be assured. An investment in the Portfolio is neither insured nor
guaranteed by the US Government.
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(This page has been left blank intentionally.)
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994
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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 Portfolio and outline
our view of the investment environment. Performance information for each
Portfolio in Merrill Lynch Series Fund, Inc., excluding the Money Reserves
Portfolio, can be found in the tables on pages 9 and 10 of this report to
shareholders.
THE ENVIRONMENT
Volatility in the US financial markets continued during the six months ended
December 31, 1994, largely prompted by concerns of increasing inflationary
pressures. The possibility of continued monetary policy tightening by the
Federal Reserve Board was predominant in the minds of investors throughout most
of the period. Therefore, there was little surprise in mid-November when the
central bank announced the sixth increase in short-term interest rates in 1994.
Early in the period, the weakness of the US dollar in foreign exchange markets
prompted declines in US stock and bond prices, but some strengthening of the US
currency has occurred recently.
The manufacturing sector was the driving force behind the US economy through the
final quarter of the year, making an important contribution to the substantial
increase in corporate earnings. US companies have been successful at containing
labor costs, which are an important component of the inflation outlook. Although
consumer spending grew at a slower pace than in previous economic recoveries,
purchases of vehicles and household durable goods rose in the latter months of
1994. Despite the relatively modest rise in consumer spending, the personal
savings rate fell to an all-time annual low in 1994.
In the weeks ahead, investors will continue to assess economic data and
inflationary trends in order to gauge whether further increases in short-term
interest rates are likely. The core inflation rate rose less than 3% in 1994
following a 3% increase in 1993, the best sustained inflation performance in 30
years. It is not likely that such positive inflation results will be duplicated
in 1995. In addition, investor interest in the new year will also be focused on
the progress that the new Congress makes on both reducing spending and the
Federal budget deficit and passing tax cuts that promote savings and investment.
Legislative progress, combined with continued indications of moderate and
sustainable levels of economic growth, would be positive for the US capital
markets. However, the lagged effects of higher interest rates could slow the
economy sharply and with it, the growth of corporate profits.
BALANCED PORTFOLIO
The poor performance of the US bond sector for much of 1994 was the primary
contributor to the Portfolio's total return of about -4.3% for the year.
(Results do not reflect sales charges, and would be lower if sales charges were
included.) During the last two months of 1994, bonds recovered a small portion
of the losses suffered earlier in the year. Consequently, the policy of
enlarging the bond allocation began to make a positive contribution to
performance late in the year. Overall, the equity sector fared better than
fixed-income securities during 1994. However, exceptionally strong returns were
limited to a few industry sectors, such as technology and healthcare.
As of December 31, 1994, the Portfolio's asset allocation was: stocks (41%),
bonds (54%), and cash (5%). During the second half of 1994, we continued to
expand bond holdings and reduce equity investments. The shift reflected the
increased relative appeal of bonds, with intermediate-term US interest rates
approaching the 8% level. We are increasingly confident that the peak in
intermediate-term US interest
1
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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rates has passed. The raising of short-term interest rates by the Federal
Reserve Board, which began in February 1994, should produce a slower US economy
during 1995, reducing fears of a resurgence of inflation.
We remain cautious regarding the outlook for US equities pending evidence that
the Federal Reserve Board has completed its tightening of monetary policy. The
reduction of US equity holdings was achieved through the acceptance of profits
in Aluminum Co. of America and Teradyne, Inc. In the healthcare sector, we
replaced Bristol-Myers Squibb Co. with Abbott Laboratories. Currently, consumer
staples and capital spending are the largest sectors in the Portfolio. We
continue to underweight the consumer durables sector since this sector could be
the most vulnerable to a slowdown in the US economy.
CAPITAL STOCK PORTFOLIO
During the fourth quarter of 1994, the widely anticipated US economic slowdown
played off against speculation that the change in Congress would produce a more
attractive stock and bond investment environment. At year-end, economic growth
persisted at a rate deemed unsustainable without producing inflation. This led
to a belief that the Federal Funds rate would be increased despite problems
associated with the Orange County, California bankruptcy and the Mexican peso
devaluation/float. This combination of events produced more uncertainty than
conviction, moving investors to the sidelines at the end of a year which did not
produce positive returns for most stock and bond investors.
As 1994 progressed, we began to shift from economy sensitive equity groups
(including the auto, rail and consumer durables sectors) in favor of more stable
groups (including consumer nondurables and energy stocks) which have
historically outperformed when economic growth has decelerated. Growth stocks,
cyclical stocks and defensive stocks performed a 'trampoline act' out of sync
for much of the year, making any logical strategy nearly useless, resulting in
the Portfolio's disappointing total return of -5.12% for 1994. Nonetheless, we
hold to the view that the US economy will decelerate in 1995 while other
developed economies are still trying to recover from their comparatively weak
conditions.
Cash equivalents, which are now producing returns approximating 6%, are at
abnormally high levels while we seek equities offering good value. Should the
104th Congress cut the capital gains tax rate or otherwise move to improve the
investment environment, we are likely to redeploy the 9% of Portfolio assets
currently assigned to cash equivalents.
GLOBAL STRATEGY PORTFOLIO
In contrast to 1993, most emerging markets of Asia and Latin America performed
poorly in 1994. The weakness in these markets and the negative total returns for
the US bond market were major contributors to the Portfolio's total return of
about -1.6% for the year. (Results do not reflect deduction of sales charges,
and would be lower if sales charges were included.) The major positive influence
on the performance of the Portfolio during 1994 was Japanese equities. Holdings
were increased early in 1994 and represented the largest single commitment for
much of the year. A number of European equity markets also contributed positive
returns in US dollar terms, while US equities were relatively neutral in terms
of their contribution to overall Portfolio performance.
As of December 31, 1994, the Portfolio's asset allocation was: US stocks (13%),
foreign stocks (47%), US bonds (24%), foreign bonds (12%), and cash (4%). We
continued to enlarge the US bond weighting in the Portfolio during the second
half of 1994. This expansion reflected our increasing confidence that the
2
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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high point for intermediate-term US interest rates has been seen. This
expectation reflects our belief that the US economy will slow down during 1995,
reducing fears of an acceleration of inflation.
In the equity sector, we took advantage of weakness in the Asian markets to
enlarge our commitments. New positions included Hong Leong Industries and UMW
Holdings in Malaysia, P.T. Indonesian Satellite in Indonesia, MDX Company Ltd.
in Thailand, and Shanghai Petrochemical Co. as an attractive representative in
China. We expect the Asian markets to rebound during 1995 as investors realize
that economic prospects remain exceptionally attractive. We also remain
overweighted in the Latin American markets. These markets were hard hit in late
1994 and early 1995 as a result of the devaluation of the Mexican peso. However,
as is the case with the Asian markets, substantial recoveries in the Latin
American markets are expected during 1995. We remain underweighted in the US
stock market pending evidence that the Federal Reserve Board has completed its
tightening of monetary policy. Our representation in European and Japanese
equities is relatively neutral.
GROWTH STOCK PORTFOLIO
The total return in 1994 was -6.93% for the Growth Stock Portfolio. The
valuation ratios for many of the growth companies in the Portfolio declined
substantially during the first half of 1994 as the Federal Reserve Board
tightened monetary policy and short-term and long-term interest rates rose
substantially. We increased the Portfolio's cash reserve position substantially
during the first half of 1994 as a defensive measure. The Dow Jones Industrials
declined 9.7% from a high point in January to a low point in early April. The
NASDAQ Composite Index declined 13.7% from its high point in mid-March to its
low point in late June 1994. During the third quarter of 1994, we reinvested a
portion of the Portfolio's cash reserves. Almost one-half of the decline in the
Portfolio's net asset value during the first half of 1994 was recovered during
the last six months of the year.
We changed the industry structure of the Portfolio substantially during 1994 in
response to the changes in the business and financial markets. At the beginning
of 1994, 25.5% of net assets was invested in interest rate-sensitive industry
sectors. The net asset exposure to interest rate-sensitive industries had been
reduced to 12.6% by year-end 1994. Also, we had 13% of the Portfolio's net
assets invested in growth companies operating in Mexico and Latin America at the
beginning of 1994; the current investment exposure in these companies is 3% of
net assets. We have increased our weighting in the technology sector, in which
the Portfolio experienced an overall positive rate of return in 1994, from 9.8%
of net assets at the start of 1994 to 17.5% at year-end. The Portfolio's
combined investments in consumer nondurable goods and services companies was
approximately unchanged at 41.5% of year-end 1994 net assets. The most important
industry sectors were specialty retailing, computer software, financial
services, communications, and pharmaceuticals. The investment strategy of the
Portfolio is to focus primarily on companies where managements are likely to
produce relatively high returns on investment and stable, above-average rates of
growth of earnings.
HIGH YIELD PORTFOLIO
The year 1994 was difficult for most investors as interest rates soared in the
face of stronger-than-expected economic growth and heightened inflationary
expectations. Common stock and bond indexes generally posted negative returns,
with fixed-income returns being the worst in any calendar year since the 1920s.
Corporate profits for many industries and companies exceeded expectations and
provided some countervailing positives for certain asset categories. The
high-yield market was helped by the surge in profits which positively impacted
such cyclical industries as steel, chemicals and paper. The total return on
3
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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the unmanaged Merrill Lynch High Yield Master Index was -1.17%, compared with
- -8.97% on ten-year US Treasury notes.
While we believe it is likely that the Federal Reserve Board will achieve its
objective of slowing the economy to a noninflationary growth rate during the
first half of 1995, a recession will probably be avoided. Certainly, the
interest rate environment is likely to be more benign in 1995. In this scenario,
high-yield bonds should perform relatively well. The credit outlook remains
generally positive. We believe that corporate profits could increase in 1995,
particularly in certain cyclical industries like paper that only began the
recovery cycle in 1994. Initial public offerings of equity should also continue
to provide credit support. In the first quarter of 1995, three high-yield
issuers, Fort Howard Corp., Uniroyal Chemical and American Standard Inc., have
equity offerings planned. We believe that defaults and credit problems will rise
in 1995 but be moderate by historic standards. Yield spreads and premiums of
high-yield bonds compared with US Treasury notes of similar maturity are
narrower than the longer-term averages. However, the long-term averages are
biased by the late 1980s and early 1990s when the supply and quality of
high-yield debt was impacted by leveraged buy-out activity. The yield premiums
are attractive compared to the first half of the 1980s, and we think the
conditions in early 1995 more nearly resemble those during that period.
During 1994, the Portfolio's performance was negatively impacted by the
following factors: overweighing of defensive credits rather than cyclicals;
approximately 15% exposure to zero coupon securities; and, exposure to credits
with temporarily depressed sales and earnings. During the past year, investors
had no tolerance for longer duration bonds (especially zero coupon bonds) and no
patience for poor results. Strong earnings (for example, cyclical companies) and
short maturities with large cash-paying coupons were favored.
A number of high-yield market sectors that outperformed last year should
continue to be leaders in 1995. For example, paper, chemical, and steel
companies experienced exceptional demand and strong product price improvement in
1994. This trend should continue. Atlantic City casinos performed poorly last
year because of concerns about legalization of gaming in Pennsylvania. Since the
elections seem to have diminished this threat, this area may recover. Deferred
interest bonds also performed poorly last year. In a better market, these
securities have excellent recovery potential, particularly since the issuers of
deferred coupon issues include many wireless communications and entertainment
companies which have excellent operating outlooks. As these examples indicate,
there are currently many sectors of the high-yield market that are out-of-favor
and offer bonds at large discounts to par value. This environment could provide
both an opportunity and a challenge in 1995.
INTERMEDIATE GOVERNMENT BOND PORTFOLIO
The bond market had one of its worst years ever in 1994. The decision of the
Federal Reserve Board in February 1994 to initiate a series of tightening moves
created a sense of anxiety among investors that inflationary pressures would
soon build up. During the course of the year, while interest rates jumped, the
overall Treasury yield curve flattened sharply as the yield spread between
two-year notes and 30-year bonds fell from 220 basis points at the beginning of
the year to only 20 basis points at year-end. However, about 100 basis points of
the curve flattening occurred in the last month and a half of 1994, when the
Federal Reserve Board's 75 basis point tightening action on November 15,
suggested to investors that it was being vigilant and that inflation in 1995
would be modest. This helped the long end of the curve at the same time that it
accelerated the overall flattening process. Yields in the intermediate area were
particularly hurt. At one point in December, the five-year note's yield exceeded
that of the 30-year bond.
4
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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We reduced the average duration of the Portfolio during the year from 5.36 years
to 4.46 years by year-end. We did this by selling securities with maturities of
seven years--ten years and by purchasing shorter-term issues and building the
Portfolio's cash equivalent position. While this protected the Portfolio from
the more extensive price drops of the longer maturities, we were still invested
in a part of the yield curve which was hurt by the market's fall.
LONG-TERM CORPORATE BOND PORTFOLIO
The bond market had one of its worst years ever in 1994. The decision of the
Federal Reserve Board in February 1994 to initiate a series of tightening moves
created a sense of anxiety among investors that inflationary pressures would
soon build up. During the course of the year, while interest rates jumped, the
overall Treasury yield curve flattened sharply as the yield spread between
two-year notes and 30-year bonds fell from 220 basis points at the beginning of
the year to only 20 basis points at year-end. However, about 100 basis points of
the curve flattening occurred in the last month and a half of 1994, when the
Federal Reserve Board's 75 basis point tightening action on November 15,
suggested to investors that it was being vigilant and that inflation in 1995
would be modest. This helped the long end of the curve at the same time that it
accelerated the overall flattening process. Yields in the intermediate area were
particularly hurt. At one point in December, the five-year note's yield exceeded
that of the 30-year bond.
During the period, we sought to rebalance the yield curve exposure of the
Portfolio to a more neutral position, lessening the dependence of the Portfolio
on the intermediate-term sector (five years--ten years) of the yield curve.
Investments were 'barbelled' by moving from the intermediate sector to the
long-term and short-term areas on the curve to take advantage of what we felt
were attractive valuations in those areas. In the process, we reduced the
average duration of the Portfolio from 6.1 years to 4.8 years.
Corporate sector allocations also reflected the impact of higher interest rates.
We lowered our allocations to retail companies as consumer strength seems to be
approaching a peak as installment debt levels continue to reach new highs versus
disposable income. We became more conservative in our financial institutions
holdings as the flatter yield curve will take a bite out of profits of the
highly leveraged firms. We reduced our holdings in the electric utility sector
and concentrated on those companies that will benefit from the new competitive
environment. This investment strategy protected us from the most vulnerable area
of the yield curve, which was the intermediate sector. The barbelling program
positioned the Portfolio more conservatively, but could not avoid the losses
associated with such a market environment.
MONEY RESERVE PORTFOLIO
For the six-month period ended December 31, 1994, the Money Reserve Portfolio's
net annualized yield was 4.60%*. The Portfolio's 7-day yield as of December 31,
1994 was 5.31% (excluding gains and losses) and 5.31% (including gains and
losses).
During the second half of 1994, short-term interest rates rose by over 150 basis
points, with most of the increase occurring in the December quarter. Economic
growth coupled with inflationary concerns prompted the Federal Reserve Board to
execute a much anticipated tightening of monetary policy in mid-August and
mid-November. Throughout this period, the Portfolio's investment strategy was
based on the belief that the Federal Reserve Board would remain committed to a
tighter monetary policy.
- ---------------
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
5
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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In July and early August, and in response to continuing strength in the
employment data, we adopted a defensive strategy of investing new cash and
maturities in short-term (30-days or less) money market securities, bringing the
average life of the Portfolio into the 40-day range. This strategy remained in
effect until after the August 16 tightening. At this point, we sought to take
advantage of the higher interest-rate environment by increasing our holdings in
two-month and three-month commercial paper.
During September and October, overall economic growth remained healthy, with
steady gains in retail sales as well as a surge in new home sales. We continued
to remain defensive. Specifically, it was our contention that investors had not
adequately discounted another tightening by the Federal Reserve Board, a move
which we felt would occur at the November Federal Open Market Committee meeting.
Once the front end of the yield curve repriced to properly reflect the expected
tightening, we purchased one-month and two-month commercial paper at attractive
yield spreads to the Federal Funds rate.
The market received no respite from higher interest rates from November through
to the end of the year. On November 15, 1994, in response to three months of
strong data, the Federal Reserve board hiked both its Federal Funds target rate
and discount rate by an aggressive 75 basis points to 5.50% and 4.75%,
respectively.
Looking ahead, we do not believe that the central bank has raised interest rates
sufficiently to slow the economy's growth to its noninflationary potential.
Accordingly, we expect to remain cautious in the months ahead. However, we do
expect to identify buying opportunities when the market gets too far ahead of
the Federal Reserve Board.
MULTIPLE STRATEGY PORTFOLIO
During the fourth quarter of 1994, the widely anticipated US economic slowdown
played off against speculation that the change in Congress would produce a more
attractive stock and bond investment environment. At year-end, economic growth
persisted at a rate deemed unsustainable without producing inflation. This led
to a belief that the Federal Funds rate would be increased despite problems
associated with the Orange County, California bankruptcy and the Mexican peso
devaluation/float. This combination of events produced more uncertainty than
conviction, moving investors to the sidelines at the end of a year which did not
produce positive returns for most stock and bond investors.
Rising interest rates for most of 1994 made bonds progressively more attractive
relative to stocks, which when measured by the popular indexes held up under
competitive pressure. Although we correctly resisted the temptation to shift the
asset mix in favor of bonds most of the year, in the fourth quarter we did
commit funds to bonds with the expectation of superior short-term returns.
Throughout the year we reduced the commitment to emerging market equity
investments which had performed well in 1993, but these holdings produced
negative returns for 1994, completely offsetting many successful US equity
positions, most notably the telecommunications equipment and computer services
companies. The Portfolio's return for the year was disappointing.
Cash equivalents, which are now producing returns approximating 6%, are at
abnormally high levels while we await a resolution to the apparent
undervaluation of bonds relative to inflation. Should the 104th Congress cut the
capital gains tax rate or otherwise move to improve the investment environment,
we are likely to redeploy the 15.6% of Portfolio net assets currently assigned
to cash equivalents.
6
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Continued)
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NATURAL RESOURCES PORTFOLIO
The 12-month period ended December 31, 1994 was turbulent for the natural
resource sector. Commodity prices in the industrial sectors such as base metals,
chemicals, steels and paper products continued their strong upward trend during
the period. Share prices of natural resource-related companies responded
positively to this underlying scenario and outperformed the world's stock
markets in general until November. In November, evidence of continued strong
economic growth, low unemployment and high capacity utilization rates in the
United States prompted the US Federal Reserve Board to raise short-term interest
rates by a greater-than-expected 75 basis points in an effort to contain
inflationary pressures. This, in turn, unsettled bond markets worldwide, and
left most of the world's stock markets with sharp losses as investors feared
that higher interest rates would significantly slow economic growth and sharply
reduce the demand for many basic resources. Chemical, metal, paper and natural
gas-related stocks were sold aggressively worldwide. We believe the outlook for
worldwide economic growth and basic resource demand remains favorable, and
therefore are using recent share price weakness in the natural resource sector
as an opportunity to further reduce the Portfolio's cash position.
We continued to add to our exposure in the base metals sector. This sector is
one of the prime beneficiaries of the trend toward more synchronized worldwide
economic growth. Industrial production growth worldwide is rising and demand for
base metals is on a strong upward path. This demand should continue to
strengthen as the European and Japanese economies gather momentum and the
developing nations continue to expand. The Asian developing nations account for
a significant and increasing share of base metals consumption because of the
relocation of the global manufacturing base and the huge infrastructure
expansion which is occurring in the region. This rising consumption pattern
along with expectations for limited capacity expansions could result in a
prolonged upward cycle in base metals prices.
We also increased our exposure to the energy sector through the purchase of a
package of natural gas-oriented exploration and production companies in the
United States. Natural gas prices fell sharply over the period as relatively
mild weather, incremental production from the Gulf of Mexico and an increased
level of imports from Canada created an excess supply. In response, several
major producers have temporarily curtailed production to help correct this
imbalance. This trend, along with expectations of stronger demand as we move
into the winter heating season, should allow gas prices to improve. We used the
weakness in natural gas prices and natural gas-related shares as an opportunity
to purchase several attractively valued exploration and production companies
with strong production growth prospects.
We maintained a significant weighting in the paper and forest products sector.
The pricing tone in this industry has improved dramatically since the beginning
of 1994. Wood product prices, including structural panels and lumber, remain
firm despite investor concerns over the effects of recent interest rate
increases on demand from the housing market. Wood product demand, particularly
within the home repair and remodeling segment of the market, remains strong
while timber supply continues to be restricted by environmental pressures
worldwide. More recently, prices are strengthening in other parts of the paper
industry, including linerboard, newsprint and market pulp. These areas suffered
from severe overcapacities because of higher investment activity by the industry
in the late 1980s. However, reduced inventories, increased demand and improved
capacity utilization rates, along with the fact that little significant new
capacity is expected to start up over the next few years, have combined to give
the industry greater pricing flexibility. Many of these price increases are just
beginning to take effect and therefore should have an increasingly positive
impact on company earnings. The Portfolio's holdings of diversified paper
companies should be prime beneficiaries of this improving industry outlook.
7
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994 (Concluded)
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Our decision to emphasize the industrial side of our universe generally enhanced
performance during the fiscal year in review. These economically sensitive
sectors were prime beneficiaries of the trend toward stronger worldwide economic
growth and generally outperformed the broad stock market averages during the
period.
Looking ahead, we remain optimistic about the outlook for investing in the
natural resource sector. The long-awaited synchronized growth of the key
economic blocs is now beginning to emerge. This has positive implications for
the underlying demand for basic resources. As investors search for sectors which
can show strong positive earnings growth, natural resource-related stocks may
continue to outperform the general equity market. Accordingly, we will maintain
a focus on the industrial side of our universe including the paper, base metal
and chemical sectors, where a combination of firm commodity prices, improved
capacity utilization rates and reduced cost structures should lead to an
improving earnings outlook. In our opinion, this scenario of increasingly better
earnings is just beginning to unfold and should accelerate over the next few
quarters.
IN CONCLUSION
We appreciate your investment in Merrill Lynch Series Fund, Inc., and we look
forward to sharing our investment outlook and objectives with you in our June
semi-annual report to shareholders.
Sincerely,
Terry K. Glenn
President
February 13, 1995
8
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MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994
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AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
12/31/94 12/31/94 12/31/94 TO 12/31/94
<S> <C> <C> <C> <C> <C>
BALANCED PORTFOLIO -4.28% + 7.47% -- + 9.52% +
CAPITAL STOCK PORTFOLIO -5.12% + 8.11% +12.30% --
GLOBAL STRATEGY PORTFOLIO -1.62% + 9.33% -- + 9.50% ++
GROWTH STOCK PORTFOLIO -6.93% + 5.88% +10.16% --
HIGH YIELD PORTFOLIO -1.88% +12.67% -- +10.57% +++
INTERMEDIATE GOVERNMENT BOND PORTFOLIO -4.78% + 7.38% + 8.90% --
LONG TERM CORPORATE BOND PORTFOLIO -5.13% + 7.88% + 9.79% --
MULTIPLE STRATEGY PORTFOLIO -5.05% + 8.84% -- +11.36% ++++
NATURAL RESOURCES PORTFOLIO +0.88% + 1.72% -- - 1.49% +++++
</TABLE>
<TABLE>
<C> <S>
+ 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 Fund commenced operations on 5/2/85.
+++++ Natural Resources Portfolio commenced operations on 7/1/87.
</TABLE>
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SEPARATE ACCOUNT AVERAGE ANNUALIZED RETURNS*
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<TABLE>
<CAPTION>
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
12/31/94 12/31/94 12/31/94 TO 12/31/94
<S> <C> <C> <C> <C> <C>
BALANCED PORTFOLIO -14.30% + 4.77% -- +7.57% +
CAPITAL STOCK PORTFOLIO -15.51% + 5.16% +10.62% --
GLOBAL STRATEGY PORTFOLIO -12.11% + 6.69% -- +6.98% ++
GROWTH STOCK PORTFOLIO -17.52% + 2.97% + 8.20% --
HIGH YIELD PORTFOLIO -11.69% +9.42% -- +8.84% +++
INTERMEDIATE GOVERNMENT BOND PORTFOLIO -14.88% + 4.86% + 7.29% --
LONG TERM CORPORATE BOND PORTFOLIO -15.19% + 5.37% + 8.21% --
MULTIPLE STRATEGY PORTFOLIO -15.38% + 6.10% -- +9.69% ++++
NATURAL RESOURCES PORTFOLIO -9.44% - 1.28% -- -4.03% +++++
</TABLE>
<TABLE>
<C> <S>
* Returns assume the separate account had been in existence and a contract had been in force during the
periods shown. They reflect 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 for 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 loads 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.
+ The Portfolio commenced operations on 5/2/88.
++ The Portfolio commenced operations on 7/1/87.
+++ The Portfolio commenced operations on 5/1/86.
++++ The Portfolio commenced operations on 5/2/85.
+++++ The Portfolio commenced operations on 7/1/87.
</TABLE>
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>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Annual Report
December 31, 1994
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT AVERAGE ANNUALIZED RETURNS FOR
ESTATE INVESTOR I & II*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR FIVE YEARS TEN YEARS SINCE
ENDED ENDED ENDED INCEPTION
12/31/94 12/31/94 12/31/94 TO 12/31/94
<S> <C> <C> <C> <C> <C>
BALANCED PORTFOLIO -5.30% +6.30% -- +8.58% +
CAPITAL STOCK PORTFOLIO -6.51% +6.66% +11.16% --
GLOBAL STRATEGY PORTFOLIO -3.11% +8.15% -- +8.44% ++
GROWTH STOCK PORTFOLIO -8.52% +4.58% +8.77% --
HIGH YIELD PORTFOLIO -2.69% +10.81% -- +9.62% +++
INTERMEDIATE GOVERNMENT BOND PORTFOLIO -5.88% +6.36% +7.91% --
LONG TERM CORPORATE BOND PORTFOLIO -6.19% +6.85% +8.80% --
MULTIPLE STRATEGY PORTFOLIO -6.38% +7.56% -- +10.29% ++++
NATURAL RESOURCES PORTFOLIO -0.44% +0.59% -- -2.43% +++++
</TABLE>
<TABLE>
<C> <S>
* Returns assume the separate account had been in existence and a contract had been in force during the
periods shown. They reflect separate account mortality and expense risk charge at an annual rate of 0.90%.
RETURNS DO NOT REFLECT DEDUCTIONS FOR CONTRACT LOADING. They do not reflect the quarterly cost of insurance.
Returns would be lower if they reflected deductions for contract loading and for cost of insurance, which
will vary by age, sex, and rating class of the insured and by each contract's net amount at risk. All charges
and fees are described in the product prospectuses. See those prospectuses for more complete information.
+ The Portfolio commenced operations on 5/2/88.
++ The Portfolio commenced operations on 7/1/87.
+++ The Portfolio commenced operations on 5/1/86.
++++ The Portfolio commenced operations on 5/2/85.
+++++ The Portfolio commenced operations on 7/1/87.
</TABLE>
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.
10
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Balanced Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the S&P 500 Index and a
Weighted Index. Beginning and ending values are:
5/02/88** 12/94
--------- ---------
Balanced Portfolio*+ $10,000 $18,335
S&P 500 Index++ $10,000 $21,725
Weighted Index+++ $10,000 $17,889
<TABLE>
<C> <S>
* 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 US Treasury Bill Index, the
Merrill Lynch B0A0 Bond Index, and the Standard & Poor's 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.
</TABLE>
11
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Capital Stock Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the S&P 500 Index.
Beginning and ending values are:
12/84 12/94
--------- ---------
Capital Stock Portfolio*+ $10,000 $31,899
S&P 500 Index++ $10,000 $38,479
<TABLE>
<C> <S>
* 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 undervalued based on criteria such as historical 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.
</TABLE>
12
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Global Strategy Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the M.S.C.I. World Index
and a Weighted Index. Beginning and ending values are:
7/01/87** 12/94
--------- ---------
Global Strategy Portfolio*+ $10,000 $19,759
M.S.C.I. World Index++ $10,000 $15,420
Weighted Index+++ $10,000 $18,551
<TABLE>
<C> <S>
* 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, calculated by Morgan Stanley Capital International, 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 M.S.C.I. World Index, the Salomon Brothers
World Government Bond Index, and the Salomon 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.
</TABLE>
13
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Growth Stock Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the S&P 500 Index.
Beginning and ending values are:
12/84 12/94
--------- ---------
Growth Stock Portfolio*+ $10,000 $26,322
S&P 500 Index++ $10,000 $38,479
<TABLE>
<C> <S>
* 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.
</TABLE>
14
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
High Yield Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the First Boston High Yield
Index. Beginning and ending values are:
5/01/86** 12/94
--------- ---------
High Yield Portfolio*+ $10,000 $23,915
First Boston High Yield Index++ $10,000 $22,769
<TABLE>
<C> <S>
* 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.
</TABLE>
15
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Intermediate Government Bond Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the Merrill Lynch G402
Index. Beginning and ending values are:
12/84 12/94
--------- ---------
Intermediate Government Bond
Portfolio*+ $10,000 $23,454
Merrill Lynch G402 Index++ $10,000 $27,205
<TABLE>
<C> <S>
* 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 years-10 years.
Past performance is not predictive of future performance.
</TABLE>
16
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Long Term Corporate Bond Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the Merrill Lynch C0A0
Index. Beginning and ending values are:
12/84 12/94
--------- ---------
Long Term Corporate Bond
Portfolio*+ $10,000 $25,452
Merrill Lynch C0A0 Index++ $10,000 $27,999
<TABLE>
<C> <S>
* 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.
</TABLE>
17
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Multiple Strategy Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the S&P 500 Index and a
Weighted Index. Beginning and ending values are:
5/02/85** 12/94
--------- ---------
Multiple Strategy Portfolio*+ $10,000 $28,319
S&P 500 Index++ $10,000 $35,259
Weighted Index+++ $10,000 $30,712
<TABLE>
<C> <S>
* 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 the Merrill Lynch B0A0
Index, is comprised of common stocks as well as investment-grade bonds.
Past performance is not predictive of future performance.
</TABLE>
18
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Total Investment Return Based on a $10,000 Investment
Natural Resources Portfolio
- --------------------------------------------------------------------------------
A line graph depicting the growth of an investment in the Portfolio
compared to growth of an investment in the S&P Industrials Index,
the Consumer Price Index and the Lipper Natural
Resources Average. Beginning and ending values are:
7/01/87** 12/94
--------- ---------
Natural Resources Portfolio*+ $10,000 $8,935
S&P Industrials Index++ $10,000 $19,139
Consumer Price Index+++ $10,000 $13,130
Lipper Natural Resources
Average++++ $10,000 $12,862
<TABLE>
<C> <S>
* 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.
</TABLE>
19
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT ISSUE COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT OBLIGATIONS
- ------------------------------------------------------------------------------------------------------------------
US TREASURY NOTES US Treasury Notes:
$ 6,250,000 6.375% due 8/15/2002................ $ 6,184,448 $ 5,722,625 7.6%
8,200,000 6.25% due 2/15/2003................. 8,397,250 7,415,834 9.8
4,400,000 5.75% due 8/15/2003................. 4,418,578 3,823,864 5.0
500,000 5.875% due 2/15/2004................ 457,734 436,015 0.6
1,600,000 7.25% due 5/15/2004................. 1,629,250 1,536,496 2.0
13,500,000 7.25% due 8/15/2004................. 13,624,922 12,957,840 17.1
9,000,000 7.875% due 11/15/2004............... 9,011,250 9,025,290 11.9
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT OBLIGATIONS 43,723,432 40,917,964 54.0
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES
INDUSTRY HELD COMMON STOCKS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
AEROSPACE 19,000 United Technologies Corp............ 913,577 1,194,625 1.6
- ------------------------------------------------------------------------------------------------------------------
BANKING 20,500 Morgan (J.P.) & Co.................. 1,232,207 1,148,000 1.5
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS 26,250 Eastman Chemical Co................. 1,101,189 1,325,625 1.8
38,000 Nalco Chemical Co................... 1,193,145 1,273,000 1.7
------------ ------------ ----------
2,294,334 2,598,625 3.5
- ------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 55,000 Kelly Services, Inc................. 1,450,000 1,498,750 2.0
- ------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 82,000 + California Energy Co. Inc........... 1,403,585 1,281,250 1.7
- ------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL 78,256 + Wheelabrator Technologies Inc....... 1,276,578 1,154,276 1.5
CONTROL
- ------------------------------------------------------------------------------------------------------------------
FOOD 73,552 Archer-Daniels-Midland Co........... 1,117,501 1,517,010 2.0
- ------------------------------------------------------------------------------------------------------------------
HARDWARE PRODUCTS 34,000 Stanley Works Co.................... 1,340,289 1,215,500 1.6
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE 65,000 Humana Inc.......................... 516,047 1,470,625 1.9
- ------------------------------------------------------------------------------------------------------------------
MACHINERY 39,000 Ingersoll-Rand Co................... 1,008,480 1,228,500 1.6
73,000 Keystone International, Inc......... 1,730,886 1,241,000 1.6
------------ ------------ ----------
2,739,366 2,469,500 3.2
- ------------------------------------------------------------------------------------------------------------------
NATURAL GAS 37,100 Consolidated Natural Gas Co......... 1,536,522 1,317,050 1.7
- ------------------------------------------------------------------------------------------------------------------
OFFICE-RELATED 14,500 Hewlett-Packard Co.................. 760,617 1,448,188 1.9
34,000 Pitney Bowes, Inc................... 1,089,523 1,079,500 1.4
------------ ------------ ----------
1,850,140 2,527,688 3.3
- ------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 38,000 Phillips Petroleum Co............... 1,075,140 1,244,500 1.6
- ------------------------------------------------------------------------------------------------------------------
OIL SERVICES 69,500 Dresser Industries, Inc............. 1,346,534 1,311,812 1.7
- ------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 25,000 Abbott Laboratories................. 777,352 815,625 1.1
45,000 Merck & Co., Inc.................... 1,536,450 1,715,625 2.3
------------ ------------ ----------
2,313,802 2,531,250 3.4
- ------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 26,000 Eastman Kodak Co.................... 1,002,006 1,241,500 1.6
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Balanced Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD COMMON STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
PRINTING & 28,000 Gannett Co., Inc.................... $ 1,239,100 $ 1,491,000 2.0%
PUBLISHING
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 25,700 American Telephone & Telegraph
Co................................ 1,020,834 1,291,425 1.7
27,600 Bell Atlantic Corp.................. 1,351,417 1,373,100 1.8
66,000 Comsat Corp......................... 1,647,695 1,229,250 1.6
------------ ------------ ----------
4,019,946 3,893,775 5.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 28,666,674 31,106,736 40.9
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT SHORT TERM SECURITIES
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL $ 3,115,000 General Electric Capital Corp., 5.80%
PAPER* due 1/03/1995....................... 3,112,993 3,112,993 4.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 3,112,993 3,112,993 4.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS................... $ 75,503,099 75,137,693 99.0
------------
------------
OTHER ASSETS LESS LIABLITIES........ 755,556 1.0
------------
NET ASSETS.......................... $ 75,893,249 100.0%
------------ -------
------------ -------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Non-Income producing security.
<TABLE>
<S> <C>
* Commercial Paper is traded on a discount basis. The interest rate shown is the discount rate paid at the time of
purchase by the Portfolio.
See Notes to Financial Statements.
</TABLE>
21
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ALUMINUM 18,000 Aluminum Co. of America............. $ 1,529,832 $ 1,559,250 0.8%
- ------------------------------------------------------------------------------------------------------------------
APPLIANCES 200,000 Singer Company N.V.................. 5,586,479 5,975,000 2.9
250,000 Sunbeam-Oster Inc................... 5,059,652 6,437,500 3.1
------------ ------------ ----------
10,646,131 12,412,500 6.0
- ------------------------------------------------------------------------------------------------------------------
AUTO & TRUCK 50,000 Consorcio G Grupo Dina, S.A.
de C.V. (ADR)*.................... 718,490 475,000 0.2
- ------------------------------------------------------------------------------------------------------------------
BANKING 100,000 Bank of New York, Inc............... 2,944,066 2,900,000 1.4
80,000 BankAmerica Corp.................... 3,608,208 3,160,000 1.5
150,000 Espirito Santo Financial Holdings
S.A. (ADR)*....................... 2,264,345 2,006,250 1.0
60,000 Grupo Financiero Serfin, S.A. de
C.V. (ADR)*....................... 1,496,021 450,000 0.2
------------ ------------ ----------
10,312,640 8,516,250 4.1
- ------------------------------------------------------------------------------------------------------------------
BEVERAGES 10,000 Panamerican Beverages, Inc.......... 370,558 316,250 0.2
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS 60,000 du Pont (E.I.) de Nemours & Co...... 3,473,170 3,375,000 1.6
100,000 Eastman Chemical Co................. 5,128,975 5,050,000 2.4
65,000 + IMC Fertilizer Group, Inc........... 2,639,155 2,811,250 1.4
50,000 Rohm and Haas Co.................... 2,850,398 2,856,250 1.4
------------ ------------ ----------
14,091,698 14,092,500 6.8
- ------------------------------------------------------------------------------------------------------------------
COMMUNICATION 150,000 ADC Telecommunications, Inc......... 4,915,456 7,425,000 3.6
EQUIPMENT 125,000 DSC Communications Corp............. 3,105,422 4,500,000 2.2
30,000 Motorola, Inc....................... 1,478,277 1,736,250 0.8
40,000 Tellabs, Inc........................ 881,805 2,220,000 1.1
------------ ------------ ----------
10,380,960 15,881,250 7.7
- ------------------------------------------------------------------------------------------------------------------
COMPUTER
EQUIPMENT 15,000 International Business Machines
Corp.............................. 1,065,845 1,102,500 0.5
100,000 + Solectron Corp...................... 2,117,589 2,750,000 1.3
------------ ------------ ----------
3,183,434 3,852,500 1.8
- ------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 175,000 Computer Sciences Corp.............. 4,893,804 8,925,000 4.3
30,000 General Motors Corp. (Class E)...... 1,177,872 1,155,000 0.6
------------ ------------ ----------
6,071,676 10,080,000 4.9
- ------------------------------------------------------------------------------------------------------------------
CONSUMER- 50,000 Duracell International Inc.......... 2,062,566 2,168,750 1.0
MISCELLANEOUS
- ------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 90,000 Block (H&R), Inc.................... 4,125,609 3,341,250 1.6
- ------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 95,000 Grainger (W.W.) Inc................. 5,756,155 5,486,250 2.7
75,000 Siebe PLC........................... 658,370 653,022 0.3
------------ ------------ ----------
6,414,525 6,139,272 3.0
- ------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 175,000 + California Energy Co., Inc.......... 3,376,640 2,734,375 1.3
- ------------------------------------------------------------------------------------------------------------------
ENGINEERING & 105,000 + Empresas ICA Sociedad Controladora,
CONSTRUCTION S.A. de C.V. (ADR)*............... 2,142,567 1,627,500 0.8
- ------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL 375,000 + Wheelabrator Technologies Inc....... 4,884,183 5,531,250 2.7
CONTROL
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE 250,000 Humana Inc.......................... 4,865,370 5,656,250 2.7
105,000 Physician Corp. of America.......... 2,201,564 2,126,250 1.0
------------ ------------ ----------
7,066,934 7,782,500 3.7
- ------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 115,000 Procter & Gamble Co................. 6,481,619 7,130,000 3.4
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US COMMON STOCKS COST (NOTE 1A) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INSURANCE 55,000 ITT Corp............................ $ 4,715,940 $ 4,874,375 2.4%
- ------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY 40,000 Allied-Signal, Inc.................. 1,425,745 1,360,000 0.7
- ------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 300,000 Danka Business Systems PLC (ADR)*... 4,024,195 6,412,500 3.1
- ------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 70,000 Mobil Corp.......................... 5,526,336 5,897,500 2.9
65,000 Phillips Petroleum Co............... 2,211,350 2,128,750 1.0
40,000 Royal Dutch Petroleum Co. N.V.
(ADR)*............................ 3,689,650 4,300,000 2.1
------------ ------------ ----------
11,427,336 12,326,250 6.0
- ------------------------------------------------------------------------------------------------------------------
PACKAGING 80,000 Crown Cork & Seal Co., Inc.......... 1,327,889 3,020,000 1.5
- ------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 30,000 American Home Products Corp......... 1,870,349 1,882,500 0.9
140,000 Merck & Co., Inc.................... 5,094,176 5,337,500 2.6
------------ ------------ ----------
6,964,525 7,220,000 3.5
- ------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 50,000 Eastman Kodak Co.................... 2,473,399 2,387,500 1.2
- ------------------------------------------------------------------------------------------------------------------
RAILROADS 165,000 + Southern Pacific Railroad Corp...... 3,419,870 2,990,625 1.4
- ------------------------------------------------------------------------------------------------------------------
RETAIL 20,000 + Revco D.S., Inc..................... 463,276 472,500 0.2
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 20,000 Empresas Telex-Chile S.A. (ADR)*.... 396,124 212,500 0.1
- ------------------------------------------------------------------------------------------------------------------
UTILITIES-- 27,300 ALC Communications Corp............. 795,541 849,712 0.4
COMMUNICATIONS 100,000 GTE Corp............................ 3,196,908 3,037,500 1.5
224,280 LDDS Communications Inc. (Class
A)................................ 4,930,759 4,345,425 2.1
180,000 MCI Communications Corp............. 5,146,796 3,307,500 1.6
90,000 + Southwestern Bell Corp.............. 3,840,650 3,633,750 1.8
45,000 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)*................... 2,309,630 1,845,000 0.9
------------ ------------ ----------
20,220,284 17,018,887 8.3
- ------------------------------------------------------------------------------------------------------------------
TOTAL US COMMON STOCKS 150,718,645 161,935,534 78.4
- ------------------------------------------------------------------------------------------------------------------
COUNTRY FOREIGN STOCKS++
- ------------------------------------------------------------------------------------------------------------------
AUSTRALIA 160,000 News Corp. Ltd. (ADR)* (14)......... 3,020,160 2,500,000 1.2
80,000 News Corp. Ltd. (Preferred) (ADR)*
(14).............................. 1,321,320 1,110,000 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AUSTRALIA 4,341,480 3,610,000 1.7
- ------------------------------------------------------------------------------------------------------------------
CANADA 40,000 Hudson Bay Co. (Ordinary) (18)...... 1,041,475 712,962 0.3
75,000 NOVA Corp. (5)...................... 788,175 693,750 0.3
100,000 Semi-Tech Corp.++++ (Receipts)**
(1)............................... 1,065,272 392,129 0.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 2,894,922 1,798,841 0.8
- ------------------------------------------------------------------------------------------------------------------
CHILE 27,000 + Banco O'Higgins (ADR)* (3).......... 398,218 462,375 0.2
28,400 ++ Distribuidora Chilectra
Metropolitana S.A. (ADR)* (23).... 794,176 1,391,600 0.7
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHILE 1,192,394 1,853,975 0.9
- ------------------------------------------------------------------------------------------------------------------
DENMARK 40,000 + Tele Danmark A/S (ADR)* (22)........ 941,040 1,020,000 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN DENMARK 941,040 1,020,000 0.5
- ------------------------------------------------------------------------------------------------------------------
FRANCE 6,536 + Compagnie Generale des Eaux (24).... 611,846 636,194 0.3
6,600 + Eramet (26)......................... 432,350 427,044 0.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 1,044,196 1,063,238 0.5
- ------------------------------------------------------------------------------------------------------------------
23
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS++ COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
HONG KONG 88,522 HSBC Holdings PLC (3)............... $ 693,225 $ 955,479 0.5%
250,000 Hutchison Whampoa, Ltd. (15)........ 795,094 1,011,505 0.5
700,000 Johnson Electric Co. (8)............ 1,320,382 1,606,127 0.8
1,000,000 Shanghai Petrochemical Company, Ltd.
(5)............................... 334,199 284,385 0.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 3,142,900 3,857,496 1.9
- ------------------------------------------------------------------------------------------------------------------
INDONESIA 1,130 PT Indonesia Satellite (ADR)*
(21).............................. 36,216 40,397 0.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN INDONESIA 36,216 40,397 0.0
- ------------------------------------------------------------------------------------------------------------------
ITALY 30,000 Istituto Mobiliare Italiano S.p.A.
(3)............................... 661,889 551,250 0.3
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ITALY 661,889 551,250 0.3
- ------------------------------------------------------------------------------------------------------------------
JAPAN 25,000 Fujitsu Ltd. (9).................... 275,643 253,769 0.1
55,000 Hitachi Cable Ltd. (9).............. 547,435 546,683 0.3
9,000 Kyocera Corp. (9)................... 667,317 668,442 0.3
150,000 Mitsubishi Electric Corp. (8)....... 1,030,005 1,065,829 0.5
20,000 NEC Corp. (19)...................... 256,589 229,146 0.1
13,000 TDK Corp. (9)....................... 613,608 631,055 0.3
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN JAPAN 3,390,597 3,394,924 1.6
- ------------------------------------------------------------------------------------------------------------------
MEXICO 240,000 Cifra, S.A. de C.V. (ADR)* (18)..... 630,538 464,327 0.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MEXICO 630,538 464,327 0.2
- ------------------------------------------------------------------------------------------------------------------
NETHERLANDS 10,000 + Unilever N.V. (25).................. 1,160,145 1,165,000 0.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE NETHERLANDS 1,160,145 1,165,000 0.6
- ------------------------------------------------------------------------------------------------------------------
NORWAY 40,000 Norsk Hydro A.S. (5)................ 1,525,136 1,565,000 0.8
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN NORWAY 1,525,136 1,565,000 0.8
- ------------------------------------------------------------------------------------------------------------------
SWEDEN 7,000 Electrolux AB (1)................... 356,211 355,862 0.2
40,000 L.M. Ericsson Telephone Co. (6)..... 2,295,245 2,205,000 1.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWEDEN 2,651,456 2,560,862 1.3
- ------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 20,146 British Petroleum Co. PLC (ADR)*
(16).............................. 1,520,022 1,609,162 0.8
25,000 Hanson PLC (Sponsored) (ADR)*
(15).............................. 553,344 450,000 0.2
50,000 Reuters Holdings PLC (ADR)* (10).... 1,384,250 2,193,750 1.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE
UNITED KINGDOM 3,457,616 4,252,912 2.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS 27,070,525 27,198,222 13.2
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT SHORT-TERM SECURITIES
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER*** $ 3,000,000 CSW Credit Corp., 6% due
1/19/1995......................... 2,990,000 2,990,000 1.4
5,000,000 Corporate Receivables Corp., 6% due
2/22/1995......................... 4,955,000 4,955,000 2.4
7,399,000 General Electric Capital Corp.,
5.80% due 1/03/1995............... 7,394,232 7,394,232 3.6
------------ ------------ ----------
15,339,232 15,339,232 7.4
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT 4,000,000 Federal National Mortgage
AGENCY OBLIGATIONS*** Association, 5.85% due
1/09/1995......................... 3,993,500 3,993,500 1.9
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 19,332,732 19,332,732 9.3
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 197,121,902 208,466,488 100.9
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Capital Stock Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF PREMIUM VALUE PERCENT OF
SHARES ISSUE RECEIVED (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN 10,000 ITT Corp., expiring January 1995 at
US$ 90............................ $ (12,096) $ (11,250) 0.0%
- ------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS WRITTEN (12,096) (11,250) 0.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, NET OF
OPTIONS WRITTEN................... $197,109,806 208,455,238 100.9
------------
------------
LIABILITIES IN EXCESS OF OTHER
ASSETS............................ (1,807,960) (0.9)
------------ ----------
NET ASSETS.......................... $206,647,278 100.0%
------------ ----------
------------ ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
* American Depositary Receipt. (ADR)
** Receipts evidence payment by the Portfolio of 40% of the purchase price of Class A Shares of International
Semi-Tech Corp. The Portfolio is obligated to pay the remaining 60%, approximately $985,000, over the next two
years.
*** Commercial Paper and certain 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 securities as to resale. The value of the Fund's investment in restricted securities was
approximately $1,392,000, representing 0.7% of net assets.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
ACQUISITION VALUE
ISSUE DATE COST (NOTE 1A)
- ------------------------------------------------------------------------------------------------------------------
Distribuidora Chilectra Metropolitana S.A. (ADR) 2/12/1992-2/26/1992 $794,176 $1,391,600
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S> <C>
++ Corresponding industry groups for foreign stocks:
(1) Appliances (14) Media/Publishing
(2) Auto-Parts (15) Multi-Industry
(3) Banking (16) Oil-Integrated
(4) Beverages (17) Real Estate
(5) Chemicals (18) Retail
(6) Communications Equipment (19) Semiconductors
(7) Computers (20) Soap
(8) Electrical Equipment (21) Telecommunications
(9) Electronics (22) Utilities-Communications
(10) Financial Services (23) Utilities-Electric
(11) Furniture (24) Utilities-Water
(12) Industrial Components (25) Food Processing
(13) Insurance (26) Metals
++++ Formerly named International Semi-Tech Corp.
See Notes to Financial Statements.
</TABLE>
25
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AEROSPACE 26,600 United Technologies Corp......... $ 1,494,541 $ 1,672,475 0.7%
- ------------------------------------------------------------------------------------------------------------------
BANKING 26,300 Morgan (J.P.) & Co............... 1,704,850 1,472,800 0.7
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS 22,750 Eastman Chemical Co.............. 968,294 1,148,875 0.5
39,000 Nalco Chemical Co................ 1,219,352 1,306,500 0.6
------------ ------------ ----------
2,187,646 2,455,375 1.1
- ------------------------------------------------------------------------------------------------------------------
COMPUTER TECHNOLOGY 15,100 Hewlett-Packard Co............... 929,757 1,508,113 0.7
- ------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 40,000 Kelly Services, Inc. (Class A)... 1,102,500 1,090,000 0.5
- ------------------------------------------------------------------------------------------------------------------
ENERGY-RELATED 62,000 + California Energy Co., Inc....... 1,094,204 968,750 0.4
- ------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL
CONTROL 75,000 + Wheelabrator Technologies Inc.... 1,510,940 1,106,250 0.5
- ------------------------------------------------------------------------------------------------------------------
FOOD 66,343 Archer-Daniels-Midland Co........ 1,020,958 1,368,324 0.6
- ------------------------------------------------------------------------------------------------------------------
HARDWARE PRODUCTS
44,500 Stanley Works Co................. 1,821,901 1,590,875 0.7
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE 40,000 Humana Inc....................... 945,698 905,000 0.4
- ------------------------------------------------------------------------------------------------------------------
MACHINERY 32,600 Ingersoll-Rand Co................ 1,041,130 1,026,900 0.5
70,000 Keystone International, Inc...... 1,594,196 1,190,000 0.5
------------ ------------ ----------
2,635,326 2,216,900 1.0
- ------------------------------------------------------------------------------------------------------------------
OFFICE-RELATED 38,500 Pitney Bowes, Inc................ 1,432,234 1,222,375 0.5
- ------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED 36,500 Phillips Petroleum Co............ 1,053,525 1,195,375 0.5
- ------------------------------------------------------------------------------------------------------------------
OIL SERVICES 68,000 Dresser Industries, Inc.......... 1,425,430 1,283,500 0.6
21,000 Schlumberger Ltd., Inc........... 1,267,768 1,057,875 0.5
------------ ------------ ----------
2,693,198 2,341,375 1.1
- ------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 39,000 Abbott Laboratories.............. 1,106,235 1,272,375 0.6
32,000 Merck & Co., Inc................. 1,046,365 1,220,000 0.5
------------ ------------ ----------
2,152,600 2,492,375 1.1
- ------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 27,000 Eastman Kodak Co................. 1,054,840 1,289,250 0.6
- ------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 28,000 Gannett Co., Inc................. 1,338,811 1,491,000 0.7
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 28,000 American Telephone & Telegraph
Co............................. 1,481,580 1,407,000 0.6
33,000 Bell Atlantic Corp............... 1,773,280 1,641,750 0.7
41,000 Comsat Corp...................... 882,860 763,625 0.4
------------ ------------ ----------
4,137,720 3,812,375 1.7
- ------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 30,311,249 30,198,987 13.5
- ------------------------------------------------------------------------------------------------------------------
COUNTRY FOREIGN STOCKS & WARRANTS++
- ------------------------------------------------------------------------------------------------------------------
ARGENTINA 64,852 Banco de Galcia y Buenos Aires
S.A. (ADR)* (4)................ 1,222,121 1,110,591 0.5
54,000 Banco Frances del Ro de la Plata
S.A. (ADR)* (5)................ 1,459,674 1,154,250 0.5
50,000 Yaciementos Petroliferos Fiscales
S.A. (Sponsored) (ADR)* (29)... 1,172,941 1,068,750 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ARGENTINA 3,854,736 3,333,591 1.5
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AUSTRALIA 275,000 C.S.R. Ltd. Ordinary (26)........ $ 800,378 $ 948,651 0.4%
120,000 National Australia Bank Ltd.
(4)............................ 812,521 960,008 0.4
358,500 Pacific Dunlop, Ltd. (25)........ 1,184,606 953,229 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AUSTRALIA 2,797,505 2,861,888 1.2
- ------------------------------------------------------------------------------------------------------------------
CANADA 84,000 Canadian Pacific Ltd. (25)....... 1,360,445 1,260,000 0.6
30,000 Imperial Oil (27)................ 1,038,466 989,234 0.4
32,000 Northern Telecommunications Ltd.
(35)........................... 860,878 1,068,000 0.5
90,000 Thomson Corp. (23)............... 1,096,101 1,106,873 0.5
60,000 Westcoast Energy, Inc. (26)...... 988,867 952,500 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CANADA 5,344,757 5,376,607 2.4
- ------------------------------------------------------------------------------------------------------------------
CHILE 55,000 + Banco O'Higgins (4).............. 900,371 941,875 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHILE 900,371 941,875 0.4
- ------------------------------------------------------------------------------------------------------------------
CHINA 3,000,000 Shanghai Petrochemical Company,
Ltd. (11)...................... 1,003,326 853,154 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN CHINA 1,003,326 853,154 0.4
- ------------------------------------------------------------------------------------------------------------------
FRANCE 11,300 Alcatel Alsthom (9).............. 1,246,482 966,392 0.4
9,500 Compagnie de Saint Gobain (17)... 900,246 1,093,961 0.5
12,600 Compagnie Generale des Eaux
(42)........................... 1,337,282 1,226,444 0.6
17,033 Schneider S.A. (12).............. 1,055,353 1,130,848 0.5
4,833 + Schneider S.A. (Warrants) (a)
(12)........................... 40,087 34,444 0.0
17,000 TOTAL S.A. (29).................. 868,957 989,010 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN FRANCE 5,448,407 5,441,099 2.4
- ------------------------------------------------------------------------------------------------------------------
GERMANY 4,800 Mannesmann AG (20)............... 966,299 1,308,527 0.6
4,400 Preussag S.A. (25)............... 1,073,571 1,279,070 0.6
3,700 RWE AG (Rheinisch Westfalisches)
(40)........................... 939,800 1,038,534 0.5
3,300 Siemens AG (13).................. 1,381,846 1,383,527 0.6
6,800 Thyssen AG (21).................. 829,859 1,298,062 0.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN GERMANY 5,191,375 6,307,720 2.9
- ------------------------------------------------------------------------------------------------------------------
HONG KONG 236,000 China Light & Power Co., Ltd.
(40)........................... 951,854 1,006,722 0.5
200,000 Sun Hung Kai Properties, Ltd.
(32)........................... 1,397,453 1,194,416 0.5
190,000 Swire Pacific, Ltd. (Class A)
(25)........................... 987,844 1,183,816 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN HONG KONG 3,337,151 3,384,954 1.5
- ------------------------------------------------------------------------------------------------------------------
INDONESIA 33,450 P.T. Indonesian Satellite (ADR)*
(35)........................... 1,293,001 1,195,838 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN INDONESIA 1,293,001 1,195,838 0.5
- ------------------------------------------------------------------------------------------------------------------
ITALY 370,000 Danieli & Co. (20)............... 1,361,249 1,324,201 0.6
330,000 Italcementi S.p.A. (10).......... 1,180,489 1,144,391 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN ITALY 2,541,738 2,468,592 1.1
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
JAPAN 119,000 Asahi Glass Co., Ltd. (7)........ $ 1,310,044 $ 1,471,055 0.7%
29,000 Bandai Co., Ltd. (37)............ 901,101 1,238,693 0.6
81,000 Canon, Inc. (13)................. 1,024,758 1,375,779 0.6
77,000 Dai Nippon Printing Co., Ltd.
(31)........................... 1,140,324 1,315,578 0.6
160,000 Hitachi Cable, Ltd. (13)......... 1,075,162 1,334,673 0.6
25,000 Ito-Yokado Co., Ltd. (33)........ 1,063,360 1,339,196 0.6
103,000 Kamigumi Co. (38)................ 1,234,927 1,097,286 0.5
59,000 Kandenko Co., Ltd. (6)........... 1,126,607 996,181 0.4
52,000 Kansai Electric Power Co. (41)... 1,469,652 1,254,271 0.6
140,000 Komatsu Ltd. (20)................ 1,054,295 1,266,332 0.6
125,000 Maeda Corp. (6).................. 1,155,958 1,306,533 0.6
160,000 Makino Milling Machine Co.
(24)........................... 1,016,034 1,444,020 0.6
69,000 Makita Electric Works, Ltd.
(13)........................... 1,116,229 1,248,241 0.6
170,000 Mitsubishi Electric Corp. (12)... 1,080,460 1,207,940 0.5
180,000 Mitsubishi Heavy Industries, Ltd.
(13)........................... 1,018,102 1,374,874 0.6
196,000 Nippon Fire and Marine Insurance
Co., Ltd. (19)................. 1,325,645 1,363,136 0.6
191,000 Nippon Oil Co., Ltd. (29)........ 1,272,486 1,272,693 0.6
149,000 Okumura Corp. (6)................ 1,124,458 1,115,628 0.5
125,000 Sekisui Chemical Co. Ltd. (11)... 1,262,212 1,243,719 0.6
85,000 Sharp Corp. (13)................. 1,199,172 1,537,688 0.7
53,000 Shikoku Electric Power Co.
(40)........................... 1,342,519 1,262,412 0.6
115,000 Sumitomo Corp. (38).............. 977,016 1,178,894 0.5
120,000 Tokio Marine and Fire Insurance
Co., Ltd. (19)................. 1,536,571 1,471,357 0.7
37,000 Tokyo Electric Power Co., Inc.
(40)........................... 1,078,823 1,033,769 0.5
84,000 Tokyo Style Co. (1).............. 1,354,941 1,426,734 0.6
200,000 Toray Industries, Ltd. (36)...... 1,413,536 1,457,286 0.6
68,000 Toto Ltd. (18)................... 1,251,023 1,113,970 0.5
40,000 Toyo Seikan Kaisha Corp. (22).... 1,165,157 1,334,673 0.6
63,000 Toyota Motor Corp. (2)........... 1,084,655 1,329,648 0.6
59,000 Yamazaki Baking Ltd. (15)........ 1,054,228 1,185,930 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN JAPAN 35,229,455 38,598,189 17.4
- ------------------------------------------------------------------------------------------------------------------
MALAYSIA 220,000 Hong Leong Industries BHD (7).... 1,181,943 1,137,708 0.5
350,000 UMW Holdings BHD (3)............. 916,406 932,419 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MALAYSIA 2,098,349 2,070,127 0.9
- ------------------------------------------------------------------------------------------------------------------
MEXICO 181,750 Cementos Mexicanos, S.A. de C.V.
(Series B) (10)................ 759,944 966,242 0.4
526,666 Cifra, S.A. de C.V. (33)......... 858,313 1,018,937 0.5
127,000 Consorcio G Grupo Dina, S.A. de
C.V. (39)...................... 1,953,686 1,206,500 0.5
60,000 Empresas ICA Sociedad
Controladora, S.A. de C.V.
(37)........................... 1,391,848 930,000 0.4
31,250 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR)* (35)........... 1,305,546 1,281,250 0.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN MEXICO 6,269,337 5,402,929 2.4
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS++ COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NETHERLANDS 9,400 Royal Dutch Petroleum Co., N.V.
(ADR)* (29).................... $ 902,063 $ 1,010,500 0.5%
13,000 Ver Ner Utigevers (31)........... 725,489 1,351,604 0.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE
NETHERLANDS 1,627,552 2,362,104 1.1
- ------------------------------------------------------------------------------------------------------------------
NORWAY 60,937 Hafslund Nycomed, Inc. (Class B)
(30)........................... 1,231,758 1,271,776 0.6
23,500 Kvaerner, Inc. (Class B) (9)..... 855,063 1,064,387 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN NORWAY 2,086,821 2,336,163 1.1
- ------------------------------------------------------------------------------------------------------------------
PORTUGAL 73,800 Banco Comercial Portuges (ADR)*
(4)............................ 958,590 931,725 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN PORTUGAL 958,590 931,725 0.4
- ------------------------------------------------------------------------------------------------------------------
SINGAPORE 147,000 Jurong Shipyard Ltd. (6)......... 1,033,378 1,130,381 0.5
810,000 Neptune Orient Lines Ltd. (34)... 829,336 1,112,255 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SINGAPORE 1,862,714 2,242,636 1.0
- ------------------------------------------------------------------------------------------------------------------
SPAIN 36,000 Repsol S.A. (ADR)* (29).......... 935,136 981,000 0.4
29,000 Telefonica Nacional de Espana
S.A. (ADR)* (35)............... 992,515 1,018,625 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SPAIN 1,927,651 1,999,625 0.9
- ------------------------------------------------------------------------------------------------------------------
SWEDEN 60,000 SKF AB 'B' Free (24)............. 878,239 991,127 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWEDEN 878,239 991,127 0.4
- ------------------------------------------------------------------------------------------------------------------
SWITZERLAND 1,350 BBC Brown Boveri & Cie (24)...... 826,395 1,163,633 0.5
1,500 Holderbank Financiere Glarus AG
(10)........................... 665,239 1,136,902 0.5
1,800 Sulzer Gebrueder AG (20)......... 837,656 1,247,266 0.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SWITZERLAND 2,329,290 3,547,801 1.6
- ------------------------------------------------------------------------------------------------------------------
THAILAND 167,000 MDX Company Ltd. (32)............ 897,355 565,651 0.3
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THAILAND 897,355 565,651 0.3
- ------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 129,000 Allied Lyons PLC (15)............ 1,211,757 1,090,876 0.5
247,000 British Gas PLC (26)............. 1,195,894 1,206,822 0.5
180,000 British Telecommunications PLC
(35)........................... 1,153,121 1,064,097 0.5
114,000 GKN PLC (8)...................... 869,982 1,048,829 0.5
280,000 General Electric PLC (13)........ 1,240,475 1,201,435 0.5
44,000 Grand Metropolitan PLC (ADR)*
(14)........................... 1,197,852 1,100,000 0.5
245,000 Hanson PLC (Sponsored) (25)...... 936,946 886,278 0.4
420,000 Hillsdown Holdings PLC (25)...... 1,051,087 1,183,896 0.5
88,000 Imperial Chemical Industries PLC
(28)........................... 1,137,770 1,031,493 0.5
370,000 Lucas Industries PLC (8)......... 827,415 1,193,605 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN THE
UNITED KINGDOM 10,822,299 11,007,331 4.9
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 98,700,019 104,220,726 46.7
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
COUNTRY AMOUNT** FOREIGN BONDS++ COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AUSTRALIA Queensland Treasury Corp. (16):
A$ 2,390,000 8% due 7/14/1999................. $ 1,744,262 $ 1,702,805 0.8%
2,500,000 8% due 5/14/2003................. 1,870,250 1,690,052 0.7
------------ ------------ ----------
3,614,512 3,392,857 1.5
- ------------------------------------------------------------------------------------------------------------------
CANADA C$ 6,900,000 Government of Canada, 7.25% due
6/01/2003 (16)................. 5,540,905 4,382,917 2.0
- ------------------------------------------------------------------------------------------------------------------
GERMANY DM 11,000,000 Bundes Obligation, 6.375% due
5/20/1998 (16)................. 7,005,934 6,957,173 3.1
- ------------------------------------------------------------------------------------------------------------------
ITALY Lit 3,000,000,000 Buoni Poliennali del Tesoro (16):
8.50% due 1/01/1997............ 1,873,676 1,756,757 0.8
3,000,000,000 10% due 8/01/2003.............. 1,919,737 1,653,323 0.7
------------ ------------ ----------
3,793,413 3,410,080 1.5
- ------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM UK Treasury Gilt (16):
Pound 7.25% due 3/30/1998.............. 6,070,273 5,882,190 2.6
Sterling 3,900,000
350,000 9.75% due 8/27/2002.............. 697,240 574,306 0.3
1,000,000 8% due 6/10/2003................. 1,668,701 1,493,084 0.7
------------ ------------ ----------
8,436,214 7,949,580 3.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 28,390,978 26,092,607 11.7
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- ------------------------------------------------------------------------------------------------------------------
GOVERNMENT $ 68,568 Government National Mortgage
NATIONAL MORTGAGE Association, 9% due
ASSOCIATION 8/15/2016 (b).................. 67,903 69,168 0.0
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT OBLIGATIONS US Treasury Notes:
1,000,000 8% due 5/15/2001................. 984,375 1,007,656 0.5
1,950,000 7.50% due 11/15/2001............. 1,979,055 1,914,656 0.9
1,200,000 7.50% due 5/15/2002.............. 1,291,344 1,177,687 0.5
1,250,000 6.375% due 8/15/2002............. 1,248,633 1,144,336 0.5
4,600,000 6.25% due 2/15/2003.............. 4,724,250 4,161,565 1.9
9,800,000 5.75% due 8/15/2003.............. 9,854,281 8,518,346 3.8
1,500,000 5.875% due 2/15/2004............. 1,373,203 1,308,750 0.6
4,000,000 7.25% due 5/15/2004.............. 4,073,125 3,843,124 1.7
18,700,000 7.25% due 8/15/2004.............. 18,795,422 17,960,770 8.0
13,000,000 7.875% due 11/15/2004............ 12,992,187 13,042,653 5.8
------------ ------------ ----------
57,315,875 54,079,543 24.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS 57,383,778 54,148,711 24.2
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Global Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE PERCENT OF
AMOUNT** SHORT-TERM SECURITIES COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
COMMERCIAL PAPER*** $ 8,937,000 General Electric Capital Corp.,
5.80% due 1/03/1995........... $ 8,932,680 $ 8,932,680 4.0%
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 8,932,680 8,932,680 4.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS................................ $223,718,704 223,593,711 100.1
------------
------------
UNREALIZED APPRECIATION ON
FORWARD FOREIGN EXCHANGE
CONTRACTS+++..................................... 247,626 0.1
LIABILITIES IN EXCESS OF OTHER
ASSETS........................................... (348,094) (0.2)
------------ ----------
NET ASSETS....................................... $223,493,243 100.0%
------------ ----------
------------ ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
* American Depositary Receipt (ADR).
** Denominated in US dollars unless otherwise indicated.
*** Commercial Paper is traded on a discount basis; the interest rate shown is the discount rate paid at the time
of purchase by the Portfolio.
(a) Warrants entitle the Portfolio to purchase a predetermined number of shares of common stock. The purchase
price and number of shares are subject to adjustment under certain conditions until the expiration date.
(b) Mortgage-backed bonds; original face amounts and related costs are reduced by principal payment pass-throughs.
+ Non-income producing security.
++ Corresponding industry groups for foreign stocks and bonds:
</TABLE>
(1) Apparel
(2) Automobile
(3) Automotive & Equipment
(4) Banking
(5) Banking-International
(6) Building & Construction
(7) Building Materials
(8) Business Services
(9) Capital Goods
(10) Cement
(11) Chemicals
(12) Electrical Equipment
(13) Electronics
(14) Food & Beverage
(15) Food
(16) Government (Bonds)
(17) Glass
(18) Industrials
(19) Insurance
(20) Machinery
(21) Machinery and Equipment
(22) Metal Fabricating
(23) Miscellaneous
(24) Miscellaneous-Capital Goods
(25) Multi-Industry
(26) Natural Gas
(27) Oil & Gas Producers
(28) Oil-Integrated
(29) Petroleum
(30) Pharmaceutical
(31) Printing & Publishing
(32) Real Estate
(33) Retail
(34) Shipping
(35) Telecommunications
(36) Textiles
(37) Toys
(38) Trading
(39) Trucking
(40) Utilities
(41) Utilities-Electric
(42) Utilities-Water
<TABLE>
<C> <S>
+++ Forward foreign exchange contracts as of December 31, 1994 were as follows:
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN EXPIRATION APPRECIATION
CURRENCY SOLD DATE (NOTE 1E)
<S> <C> <C>
- -------------------------------------------------
Yen2,470,000,000 July 1995 $247,626
- -------------------------------------------------
TOTAL (US COMMITMENT-$25,694,677) $247,626
------------
------------
- -------------------------------------------------
TOTAL UNREALIZED APPRECIATION ON
FORWARD FOREIGN
EXCHANGE CONTRACTS $247,626
------------
------------
- -------------------------------------------------
See Notes to Financial
Statements.
</TABLE>
31
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS & BONDS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADVERTISING 40,000 Interpublic Group of
Companies, Inc.............. $ 1,312,400 $ 1,285,000 1.3%
- ------------------------------------------------------------------------------------------------------------------
APPAREL 53,000 Deckers Outdoor Corp.......... 1,186,625 662,500 0.7
- ------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 175,000 Consorcio G Grupo Dina, S.A.
de C.V. (ADR)+.............. 3,449,925 1,662,500 1.6
10,000 Daimler-Benz AG............... 475,442 492,500 0.5
40,000 Ek Chor China Motorcycle Co.,
Ltd......................... 894,381 545,000 0.5
------------ ------------ ----------
4,819,748 2,700,000 2.6
- ------------------------------------------------------------------------------------------------------------------
BANKING 40,000 State Street Boston Corp...... 1,550,000 1,140,000 1.1
- ------------------------------------------------------------------------------------------------------------------
BEVERAGES 10,000 Coca-Cola Co.................. 461,850 515,000 0.5
40,000 PepsiCo, Inc.................. 1,319,275 1,450,000 1.4
------------ ------------ ----------
1,781,125 1,965,000 1.9
- ------------------------------------------------------------------------------------------------------------------
BROADCASTING--CABLE 75,000 TCI-Communications Inc. (Class
A).......................... 1,843,750 1,631,250 1.6
50,000 Time Warner Inc............... 2,065,418 1,756,250 1.7
------------ ------------ ----------
3,909,168 3,387,500 3.3
- ------------------------------------------------------------------------------------------------------------------
BROADCASTING--MEDIA 40,000 Grupo Radio Centro, S.A. de
C.V. (ADR)+................. 929,350 570,000 0.6
30,000 Grupo Televisa, S.A. de C.V.
(ADR) (Series L)+........... 1,837,925 952,500 0.9
50,000 Infinity Broadcasting Corp.
(Class A)................... 1,544,441 1,575,000 1.5
60,000 Turner Broadcasting System,
Inc. (Class B).............. 1,575,805 982,500 1.0
------------ ------------ ----------
5,887,521 4,080,000 4.0
- ------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES 25,000 Olsten Corp................... 896,125 793,750 0.8
- ------------------------------------------------------------------------------------------------------------------
CHEMICAL PRODUCERS 40,000 Duracell International Inc.... 1,728,088 1,735,000 1.7
20,000 Great Lakes Chemical Corp..... 1,523,285 1,140,000 1.1
------------ ------------ ----------
3,251,373 2,875,000 2.8
- ------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS 120,000 cisco Systems, Inc............ 3,527,180 4,200,000 4.1
20,000 ++ Nextel Communications, Inc.
(Class A)................... 905,000 287,500 0.3
------------ ------------ ----------
4,432,180 4,487,500 4.4
- ------------------------------------------------------------------------------------------------------------------
COMPUTERS 100,000 ++ Compaq Computer Corp.......... 3,810,584 3,950,000 3.9
- ------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS 70,000 CUC International, Inc........ 2,498,786 2,345,000 2.3
& SERVICES
- ------------------------------------------------------------------------------------------------------------------
COSMETICS 20,000 Gillette Co., The............. 1,393,470 1,495,000 1.5
30,000 International Flavors &
Fragrances, Inc............. 1,252,375 1,387,500 1.4
------------ ------------ ----------
2,645,845 2,882,500 2.9
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS & BONDS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ELECTRONICS 60,000 Intel Corp.................... $ 3,623,300 $ 3,817,500 3.8%
- ------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT 80,000 Electronic Arts, Inc.......... 2,339,584 1,530,000 1.5
- ------------------------------------------------------------------------------------------------------------------
FINANCE 10,000 Countrywide Credit Industries,
Inc......................... 219,625 130,000 0.1
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 80,000 MGIC Investment Corp.......... 2,216,600 2,650,000 2.6
60,000 The Travelers Corp............ 2,565,483 1,950,000 1.9
------------ ------------ ----------
4,782,083 4,600,000 4.5
- ------------------------------------------------------------------------------------------------------------------
FOOD 30,000 Wrigley (Wm.) Jr. Company
(Class B)................... 1,275,640 1,481,250 1.5
- ------------------------------------------------------------------------------------------------------------------
FOOD MERCHANDISING 70,000 Albertson's Inc............... 1,888,866 2,030,000 2.0
- ------------------------------------------------------------------------------------------------------------------
HEALTH SERVICES 100,000 Novacare, Inc................. 1,543,774 725,000 0.7
- ------------------------------------------------------------------------------------------------------------------
HOME FURNISHINGS 100,000 Shaw Industries, Inc.......... 1,757,850 1,487,500 1.5
- ------------------------------------------------------------------------------------------------------------------
HOTELS 40,000 Marriott International,
Inc......................... 1,195,768 1,125,000 1.1
- ------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 20,000 Procter & Gamble Co........... 1,224,050 1,240,000 1.2
- ------------------------------------------------------------------------------------------------------------------
INFORMATION PROCESSING 40,000 First Financial Management
Corp........................ 2,393,820 2,465,000 2.4
50,000 General Motors Corp. (Class
E).......................... 1,793,700 1,925,000 1.9
------------ ------------ ----------
4,187,520 4,390,000 4.3
- ------------------------------------------------------------------------------------------------------------------
INSURANCE 20,000 American International Group,
Inc......................... 1,901,358 1,960,000 1.9
5,000 General Re Corp............... 646,288 618,750 0.6
300,000 Reliance Group Holdings,
Inc......................... 2,390,000 1,537,500 1.5
------------ ------------ ----------
4,937,646 4,116,250 4.0
- ------------------------------------------------------------------------------------------------------------------
LEISURE 60,000 PolyGram N.V. (ADR)+.......... 2,438,416 2,767,500 2.7
- ------------------------------------------------------------------------------------------------------------------
MARKETING 10,000 Catalina Marketing Corp....... 428,200 556,250 0.5
- ------------------------------------------------------------------------------------------------------------------
MEDICAL TECHNOLOGY 40,000 Haemonetics Corp.............. 1,091,168 690,000 0.7
- ------------------------------------------------------------------------------------------------------------------
OIL SERVICES 15,000 Schlumberger Ltd., Inc........ 905,220 755,625 0.7
- ------------------------------------------------------------------------------------------------------------------
PHARMACEUTICAL-- 20,000 ++ Amgen, Inc.................... 1,125,000 1,177,500 1.2
PRESCRIPTION 40,000 Pfizer, Inc................... 2,646,576 3,090,000 3.0
------------ ------------ ----------
3,771,576 4,267,500 4.2
- ------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL 20,000 WMX Technologies, Inc......... 573,700 525,000 0.5
- ------------------------------------------------------------------------------------------------------------------
PUBLISHING 20,000 Scholastic Corp............... 902,500 1,015,000 1.0
- ------------------------------------------------------------------------------------------------------------------
RESTAURANTS 70,000 McDonald's Corp............... 1,908,600 2,047,500 2.0
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Growth Stock Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE AMOUNT/ VALUE PERCENT OF
INDUSTRY SHARES HELD STOCKS & BONDS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL--SPECIALTY 40,000 ++ Bed, Bath & Beyond, Inc....... $ 1,047,016 $ 1,200,000 1.2%
60,000 Fingerhut Companies, Inc...... 1,695,222 930,000 0.9
30,000 Pep Boys--Manny, Moe & Jack... 967,428 930,000 0.9
$650,000 Pep Boys--Manny, Moe & Jack,
4% due 9/01/1999............ 650,000 617,500 0.6
90,000 Staples Inc................... 1,630,625 2,205,000 2.2
------------ ------------ ----------
5,990,291 5,882,500 5.8
- ------------------------------------------------------------------------------------------------------------------
RETAIL--STORES 100,000 Cifra, S.A. de C.V............ 229,860 193,470 0.2
10,000 Dollar General Corp........... 231,149 295,000 0.3
------------ ------------ ----------
461,009 488,470 0.5
- ------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS 20,000 Texas Instruments, Inc........ 1,312,303 1,497,500 1.5
- ------------------------------------------------------------------------------------------------------------------
SOFTWARE--COMPUTER 60,000 Computer Associates
International Inc........... 2,457,575 2,910,000 2.9
23,781 ++ Pharmaceutical Resource, Inc.
(Conv. Pfd.)................ -- -- 0.0
55,000 ++ Sybase, Inc................... 2,602,444 2,846,250 2.8
------------ ------------ ----------
5,060,019 5,756,250 5.7
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 120,000 MCI Communications Corp....... 3,250,858 2,205,000 2.2
80,000 QUALCOMM Inc.................. 2,398,750 1,900,000 1.9
------------ ------------ ----------
5,649,608 4,105,000 4.1
- ------------------------------------------------------------------------------------------------------------------
TOYS 60,000 Mattel, Inc................... 1,533,812 1,507,500 1.5
- ------------------------------------------------------------------------------------------------------------------
TRAVEL & LODGING 93,400 Carnival Corp. (Class A)...... 2,109,047 1,984,750 2.0
- ------------------------------------------------------------------------------------------------------------------
UTILITIES--ELECTRIC 40,000 ++ AES China Generating Co.
Ltd......................... 643,500 410,000 0.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL STOCKS & BONDS 101,736,155 93,482,595 92.0
- ------------------------------------------------------------------------------------------------------------------
FACE AMOUNT SHORT-TERM SECURITIES
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER* $3,000,000 Corporate Asset Funding Corp.,
5.85% due 2/01/1995......... 2,983,912 2,983,912 2.9
3,300,000 General Electric Capital
Corp., 5.80% due
1/03/1995................... 3,297,873 3,297,873 3.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 6,281,785 6,281,785 6.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS............. $108,017,940 99,764,380 98.1
------------
------------
OTHER ASSETS LESS
LIABILITIES................. 1,937,234 1.9
------------ ----------
NET ASSETS.................... $101,701,614 100.0%
------------ ----------
------------ ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* Commercial Paper is traded on a discount basis; the interest rates shown are the discount rates paid at the time
of purchase by the Portfolio.
+ American Depositary Receipt (ADR).
++ Non-income producing security.
See Notes to Financial Statements.
</TABLE>
34
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
- ------------------------------------------------------------------------------------------------------------------
AIRLINES--2.7% BB+ Baa3 $ 750,000 Delta Air Lines, Inc., 9.30% due
1/02/2010....................... $ 740,775 $ 701,412
BB+ Ba2 1,000,000 United Air Lines, Inc. 9.21% due
1/21/2017....................... 1,016,820 862,160
BB B1 750,000 USAir, Inc., 10.375% due
3/01/2013....................... 750,000 611,250
------------ ------------
2,507,595 2,174,822
- ------------------------------------------------------------------------------------------------------------------
BROADCASTING & BB- Ba3 600,000 Heritage Media Services Inc., 11%
PUBLISHING--1.9% due 6/15/2002................... 637,500 609,000
B Caa 2,000,000 NWCG Holding Corp., 13.50%* due
6/15/1999....................... 1,098,538 1,020,000
------------ ------------
1,736,038 1,629,000
- ------------------------------------------------------------------------------------------------------------------
BUILDING B+ B3 1,000,000 Pacific Lumber Co., 10.50% due
MATERIALS--1.1% 3/01/2003....................... 982,813 930,000
- ------------------------------------------------------------------------------------------------------------------
BUILDING B Ba3 1,000,000 Inter-City Products Corp., 9.75%
PRODUCTS--1.1% due 3/01/2000................... 963,750 932,500
- ------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--1.6% B+ B3 1,500,000 Sequa Corp., 9.375% due
12/15/2003...................... 1,545,938 1,320,000
- ------------------------------------------------------------------------------------------------------------------
CELLULAR
TELEPHONES--1.9% CCC Caa 750,000 Dial Page, Inc., 12.25% due
2/15/2000....................... 751,500 750,000
CCC+ B3 1,000,000 USA Mobile Communications
Holdings, Inc., 9.50% due
2/01/2004....................... 908,750 810,000
------------ ------------
1,660,250 1,560,000
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS--2.4% B+ Ba3 1,717,000 G-I Holdings Inc., 11.15%* due
10/01/1998...................... 1,142,782 1,060,248
B B3 1,000,000 Laroche Industries Inc., 13% due
8/15/2004....................... 1,000,000 920,000
------------ ------------
2,142,782 1,980,248
- ------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS-- BB- B2 1,000,000 Telefonica de Argentina, S.A.,
1.1% 11.875% due 11/01/2004.......... 980,080 900,000
- ------------------------------------------------------------------------------------------------------------------
CONGLOMERATES-- B+ B1 1,000,000 Foamex Capital Corp., 11.25% due
4.6% 10/01/2002...................... 989,063 950,000
B+ B3 950,000 Jordan Industries Inc., 10.375%
due 8/01/2003................... 950,000 845,500
NR++ NR++ 1,000,000 MacAndrew & Forbes Group, Inc.,
13% due 3/01/1999............... 995,000 990,000
BB- B1 1,000,000 Sherritt Gordon, Ltd., 9.75% due
4/01/2003....................... 988,750 960,000
------------ ------------
3,922,813 3,745,500
- ------------------------------------------------------------------------------------------------------------------
CONSUMER NR++ Caa 1,000,000 + Formica Corp., 14.843% due
PRODUCTS--3.5% 9/15/2005 (d)................... 1,003,750 1,165,642
NR++ NR++ 1,000,000 Liggett Group, Inc.:
11.50% due 2/01/1999............ 975,000 700,000
NR++ NR++ 19,000 +16.50% due 2/01/1999............. 19,000 16,340
B- Caa 1,000,000 + Polymer Group Inc., 12.25% due
7/15/2002....................... 1,000,000 972,500
------------ ------------
2,997,750 2,854,482
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------------
CONTAINERS--5.1% B B2 $ 1,000,000 Anchor Glass Container Co., 9.875%
due 12/15/2008.................. $ 981,875 $ 860,000
B- Caa 2,750,000 Ivex Holdings Inc., 13.25%* due
3/15/2005....................... 1,543,947 1,100,000
BB Ba3 1,000,000 Owens-Illinois, Inc., 11% due
12/01/2003...................... 1,025,000 1,037,500
B- B3 1,500,000 Silgan Holdings, Inc., 13.25%* due
12/15/2002...................... 1,272,946 1,260,000
------------ ------------
4,823,768 4,257,500
- ------------------------------------------------------------------------------------------------------------------
COSMETICS--1.1% B B2 1,000,000 Revlon Consumer Products Corp.,
9.375% due 4/01/2001............ 870,055 895,000
- ------------------------------------------------------------------------------------------------------------------
ENERGY--7.5% B+ B1 2,000,000 Clark Oil & Refining Corp.,
11.02%* due 2/15/2000........... 1,156,366 1,140,000
BB B1 850,000 Gulf Canada Resources, Ltd., 9%
due 8/15/1999................... 789,281 807,500
BB- Ba3 1,000,000 Noble Drilling Corp., 9.25% due
10/01/2003...................... 1,000,000 945,000
BB- Ba3 750,000 Seagull Energy Corp., 8.625% due
8/01/2005....................... 751,875 639,375
NR++ B3 750,000 Tesoro Petroleum Corp., 12.75% due
3/15/2001....................... 564,375 750,000
BB- B1 1,000,000 Trans Texas Gas Corp., 10.50% due
9/01/2000....................... 966,250 955,000
B+ B1 1,125,000 Triton Energy Corp., 9.68%* due
11/01/1997...................... 856,895 826,875
------------ ------------
6,085,042 6,063,750
- ------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT-- B B3 1,375,000 AMC Entertainment, Inc., 12.625%
5.0% due 8/01/2002................... 1,396,102 1,454,063
B+ B1 750,000 Cinemark USA, Inc., 12% due
6/01/2002....................... 750,000 780,000
B Caa 1,000,000 Marvel Holdings, Inc., 9.125% due
2/15/1998....................... 885,000 870,000
B B3 1,000,000 Plitt Theaters Inc., 10.875% due
6/15/2004....................... 1,000,625 930,000
------------ ------------
4,031,727 4,034,063
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL B- B3 750,000 Pioneer Finance Corp., 13.50% due
SERVICES--1.5% 12/01/1998...................... 792,187 540,000
BB- B1 750,000 Reliance Group Holdings Inc.,
9.75% due 11/15/2003............ 750,000 656,250
------------ ------------
1,542,187 1,196,250
- ------------------------------------------------------------------------------------------------------------------
FOOD & B+ B1 1,000,000 Canandaigua Wine Inc., 8.75% due
BEVERAGE--10.0% 12/15/2003...................... 890,000 910,000
B B2 1,000,000 Coca Cola Bottling Co., Inc., 9%
due 11/15/2003.................. 1,000,000 877,500
NR++ NR++ 500,000 + Cumberland Farms, 10.50% due
10/01/2003...................... 489,375 415,000
BB- B1 1,000,000 Del Monte Corp., 10% due
5/01/2003....................... 976,250 680,000
36
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------------
FOOD & BEVERAGE
(CONCLUDED) B- B2 $ 1,000,000 Envirodyne Industries Inc., 10.25%
due 12/01/2001.................. $ 1,018,750 $ 700,000
B- B3 2,100,000 Farm Fresh, Inc., 7.50% due
3/01/2010....................... 1,093,875 1,295,200
CCC- Caa 1,000,000 Grand Union Co., 12.25% due
7/15/2002....................... 1,000,000 395,000
BB- Ba3 750,000 P&C Food Markets, Inc., 11.50% due
10/15/2001...................... 780,469 761,250
B B2 500,000 Penn Traffic Co., 9.625% due
4/15/2005....................... 495,635 435,000
B- B2 1,000,000 Pueblo Xtra International Inc.,
9.50% due 8/01/2003............. 1,000,000 840,000
B B2 1,000,000 Speciality Foods Corp., 10.25% due
8/15/2001....................... 1,000,312 890,000
------------ ------------
9,744,666 8,198,950
- ------------------------------------------------------------------------------------------------------------------
HEALTH B B2 750,000 Continental Medical Systems Inc.,
SERVICES--1.8% 10.875% due 8/15/2002........... 753,750 603,750
B+ B1 1,000,000 MEDIQ/PRN Life Support Services,
Inc., 11.125% due 7/01/1999..... 1,002,500 930,000
------------ ------------
1,756,250 1,533,750
- ------------------------------------------------------------------------------------------------------------------
HIGH CCC+ B3 1,000,000 ComputerVision Corp., 11.375% due
TECHNOLOGY--1.0% 8/15/1999....................... 995,000 820,000
- ------------------------------------------------------------------------------------------------------------------
HOTELS & BB B1 1,000,000 Bally's Park Place Funding Corp.,
CASINOS--8.1% 9.25% due 3/15/2004............. 920,000 860,000
B+ B2 1,000,000 GB Properties Funding Corp.,
10.875% due 1/15/2004........... 845,000 810,000
NR++ NR++ 635,000 Goldriver Hotel & Casino Corp.,
13.375% due 8/31/1999........... 790,072 552,450
B+ B1 500,000 Harrah's Jazz Company, 14.25% due
11/15/2001...................... 500,000 525,000
BB- B1 810,000 Host Marriott Hospitality, Inc.,
10.375% due 6/15/2011........... 832,275 810,000
BB- B1 1,000,000 John Q. Hammons Hotel, 8.875% due
2/15/2004....................... 887,500 865,000
B B2 750,000 Showboat, Inc., 13% due
8/01/2009....................... 727,500 712,500
NR++ Caa 500 Trump Castle Funding, Inc., 11.75%
due 11/15/2003.................. 478 255
B B3 2,000,000 Trump Plaza Funding, Inc., 10.875%
due 6/15/2001................... 1,997,527 1,520,000
------------ ------------
7,500,352 6,655,205
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL BB- B2 650,000 ADT Operations, 9.25% due
SERVICES--4.7% 8/01/2003....................... 650,000 601,250
B- B3 1,500,000 Bell & Howell Co., 10.75% due
10/01/2002...................... 1,522,500 1,425,000
B- Caa 755,000 Southeastern Public Service Co.,
11.875% due 2/01/1998........... 563,165 747,450
Thermadyne Industries, Inc.:
CCC NR++ 517,000 10.25% due 5/01/2002.............. 518,393 485,980
CCC NR++ 718,000 10.75% due 11/01/2003............. 719,382 674,920
------------ ------------
3,973,440 3,934,600
</TABLE>
- --------------------------------------------------------------------------------
37
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (CONCLUDED)
- --------------------------------------------------------------------------------
METAL & B- B3 $ 1,750,000 Maxxam Group, Inc., 12.25%* due
MINING--1.2% 8/01/2003....................... $ 1,142,065 $ 997,500
- ------------------------------------------------------------------------------------------------------------------
PAPER--4.5% B B2 1,000,000 Fort Howard Corp., 9% due
2/01/2006....................... 997,500 860,000
B+ B1 1,000,000 Repap Wisconsin Finance, Inc.,
9.25% due 2/01/2002............. 900,000 900,000
B B1 750,000 Riverwood International, Corp.,
11.25% due 6/15/2002............ 750,000 770,625
B+ B1 500,000 + S.D. Warren Co., 12% due
12/15/2004...................... 500,000 511,250
B+ B1 750,000 Stone Container Corp., 10.25% due
12/15/2000...................... 753,750 738,750
------------ ------------
3,901,250 3,780,625
- ------------------------------------------------------------------------------------------------------------------
RESTAURANTS--1.7% CCC+ Caa 1,000,000 Flagstar Corp., 11.375% due
9/15/2003....................... 935,000 830,000
B- B2 750,000 Foodmaker, Inc., 9.75% due
6/01/2002....................... 738,750 562,500
------------ ------------
1,673,750 1,392,500
- ------------------------------------------------------------------------------------------------------------------
RETAIL--1.1% B+ B2 1,000,000 Bradlees, Inc., 11% due
8/01/2002....................... 1,023,750 910,000
- ------------------------------------------------------------------------------------------------------------------
TEXTILES--1.1% B+ B3 1,000,000 Westpoint Stevens Industries,
Inc., 9.375% due 12/15/2005..... 1,000,000 905,000
- ------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-- B+ Ba3 1,000,000 Viking Star Shipping Co., 9.625%
1.1% due 7/15/2003................... 1,030,000 930,000
- ------------------------------------------------------------------------------------------------------------------
TRANSPORATION NR++ NR++ 2,000,000 Transtar Holdings, L.P., 13.375%*
SERVICES--1.2% due 12/15/2003.................. 1,209,130 1,000,000
- ------------------------------------------------------------------------------------------------------------------
UTILITIES--3.2% B+ B1 980,000 Beaver Valley Funding Co., 9% due
6/01/2017....................... 924,875 695,800
B+ Ba3 1,000,000 CTC Mansfield Funding, Inc.,
11.125% due 9/30/2016........... 1,076,250 926,570
B- B2 1,000,000 Midland Cogeneration Venture L.P.,
13.25% due 7/23/2006............ 1,108,750 962,950
------------ ------------
3,109,875 2,585,320
- ------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS--82.8% 74,852,116 68,116,565
- ------------------------------------------------------------------------------------------------------------------
SHARES HELD COMMON STOCKS & WARRANTS
- ------------------------------------------------------------------------------------------------------------------
FOOD & BEVERAGE--0.2% 18,304 Doskocil Companies, Inc........... 1,059,879 132,704
- ------------------------------------------------------------------------------------------------------------------
HIGH TECHNOLOGY--0.0% 30,351 + Anacomp, Inc. (Warrants) (b)
(d)............................. 40,000 30,351
- ------------------------------------------------------------------------------------------------------------------
HOTELS & 10,000 Goldriver Hotel & Casino Corp.
CASINOS--0.0% (Class B) (c)................... 65,657 28,125
1,000 + Goldriver Hotel & Casino
Liquidating Trust............... 24,040 17,129
2,000 Trump Taj Mahal Holding Corp.
(Class A)....................... 1,000 20,000
------------ ------------
90,697 65,254
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--0.0% 1,036 Thermadyne Industries, Inc.
(Warrants) (b) (d).............. 15,022 11,784
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS &
WARRANTS--0.2% 1,205,598 240,093
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
High Yield Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
INDUSTRY HELD ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS
- ------------------------------------------------------------------------------------------------------------------
BROADCASTING & 8,854 K-III Communications Corp. (a)........ $ 904,064 $ 851,050
PUBLISHING--1.0%
- ------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS--1.0% 904,064 851,050
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT SHORT-TERM SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.80%
COMMERCIAL 2,239,000 due
PAPER**--2.7% 1/03/1995.............................
2,237,557 2,237,557
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT
AGENCY $ 1,000,000 Federal Home Loan Mortgage Corp.,
OBLIGATIONS**--10.9% 5.94% due 1/23/1995................... 996,040 996,040
8,000,000 Federal National Mortgage Association,
5.70% due 1/17/1995................... 7,977,200 7,977,200
------------ ------------
8,973,240 8,973,240
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES--13.6% 11,210,797 11,210,797
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--97.6%.............. $ 88,172,575 80,418,505
------------
------------
OTHER ASSETS LESS LIABILITIES--2.4%... 2,002,515
------------
NET ASSETS--100.0%.................... $ 82,421,020
------------
------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* Represents the effective yield at the time of purchase.
** Commercial Paper and certain US Government Obligations are traded on a discount basis; the interest rate shown
is the discount rate 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) Warrants entitle the Portfolio to purchase a predetermined number of shares of common stock/face amount of
bonds. The purchase price and number of shares/face amount are subject to adjustments under certain conditions
until the expiration date.
(c) Each share contains a right which entitles the Portfolio to purchase a predetermined number of shares of
preferred stock. The purchase price and number of shares are subject to adjustment.
(d) Non-income producing security.
+ Restricted securities as to resale. The value of the Fund's investment in restricted securities was
approximately $3,128,000, representing 3.80% of net assets.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
ISSUE ACQUISITION DATE COST VALUE
- ------------------------------------------------------------------------------------------------------------------
Anacomp, Inc. (Warrants) 10/23/90 $ 40,000 $ 30,351
Cumberland Farms, 10.50% due 10/01/2003 2/18/94-3/28/94 489,375 415,000
Formica Corp., 14.843% due 9/15/2005 11/12/93 1,003,750 1,165,642
Goldriver Hotel & Casino Liquidating Trust 8/31/92 24,040 17,129
Liggett Group, Inc., 16.50% due 2/01/1999 1/28/94 19,000 16,340
Polymer Group Inc., 12.25% due 7/15/2002 6/17/94 1,000,000 972,500
S.D. Warren Co., 12% due 12/15/2004 12/13/94 500,000 511,250
- ------------------------------------------------------------------------------------------------------------------
TOTAL $3,076,165 $3,128,212
---------- ----------
---------- ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
++ Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
39
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Intermediate Government Bond Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- ------------------------------------------------------------------------------------------------------------------
FEDERAL FARM CREDIT
BANK--2.4% $ 5,000,000 Federal Farm Credit Bank, 8.65% due 10/01/1999..... $ 5,113,650 $ 5,112,500
- ------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL FARM CREDIT BANK 5,113,650 5,112,500
- ------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN
MORTGAGE Federal Home Loan Mortgage Corporation:
CORPORATION--4.9% 6,000,000 6.55% due 1/04/2000................................ 6,102,840 5,640,000
5,000,000 7.90% due 9/19/2001................................ 5,000,000 5,050,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION 11,102,840 10,690,000
- ------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL
MORTGAGE Federal National Mortgage Association:
ASSOCIATION--24.4% 5,000,000 6.26% due 12/22/1997............................... 4,762,600 4,780,550
7,000,000 8.35% due 11/10/1999............................... 7,650,000 7,083,090
12,000,000 8.90% due 6/12/2000................................ 13,980,480 12,487,440
9,000,000 9.20% due 9/11/2000................................ 9,392,500 9,551,250
10,000,000 7.85% due 9/10/2004................................ 9,824,469 9,593,700
5,000,000 8.25% due 10/12/2004............................... 4,939,800 4,907,800
5,000,000 8.55% due 12/10/2004............................... 4,996,094 4,956,250
- ------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION 55,545,943 53,360,080
- ------------------------------------------------------------------------------------------------------------------
MORTGAGE BACKED 867,565 Federal National Mortgage Association, 9% due
SECURITIES--0.4% 1/01/2002 (a).................................... 837,200 879,763
- ------------------------------------------------------------------------------------------------------------------
TOTAL MORTGAGE BACKED SECURITIES 837,200 879,763
- ------------------------------------------------------------------------------------------------------------------
PRIVATE EXPORT
FUNDING Private Export Funding Corporation:
CORPORATION--8.0% 7,000,000 8.35% due 1/31/2001................................ 7,083,590 7,069,090
10,000,000 8.75% due 6/30/2003................................ 10,410,681 10,346,600
- ------------------------------------------------------------------------------------------------------------------
TOTAL PRIVATE EXPORT FUNDING CORPORATION 17,494,271 17,415,690
- ------------------------------------------------------------------------------------------------------------------
STUDENT LOAN 15,000,000 Student Loan Marketing Association, 5.90% due
MARKETING 5/14/1996........................................ 15,014,250 14,927,400
ASSOCIATION--6.8%
- ------------------------------------------------------------------------------------------------------------------
TOTAL STUDENT LOAN MARKETING ASSOCIATION 15,014,250 14,927,400
- ------------------------------------------------------------------------------------------------------------------
US TREASURY
NOTES--46.9% US Treasury Notes:
10,000,000 8.875% due 11/15/1997.............................. 10,321,875 10,264,100
13,000,000 8.875% due 2/15/1999............................... 14,712,344 13,455,000
6,000,000 6% due 10/15/1999.................................. 6,206,719 5,568,720
10,000,000 8.75% due 8/15/2000................................ 11,795,313 10,409,400
21,000,000 8.50% due 11/15/2000............................... 22,600,412 21,646,380
6,000,000 7.875% due 11/15/2004.............................. 5,956,140 6,016,860
18,000,000 12% due 5/15/2005.................................. 25,619,062 23,152,500
10,000,000 10.75% due 8/15/2005............................... 13,385,937 12,012,500
- ------------------------------------------------------------------------------------------------------------------
TOTAL US TREASURY NOTES 110,597,802 102,525,460
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS--93.8% 215,705,956 204,910,893
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Intermediate Government Bond Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE $ 10,570,000 UBS Securities Inc., purchased on 12/30/1994 to
AGREEMENT*--4.8% yield 5.75% to 1/03/1995......................... $ 10,570,000 $ 10,570,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES--4.8% 10,570,000 10,570,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.6%........................... $ 226,275,956 215,480,893
-------------
-------------
OTHER ASSETS LESS LIABILITIES--1.4%................ 3,129,834
-------------
NET ASSETS--100.0%................................. $ 218,610,727
-------------
-------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
(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.
</TABLE>
41
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT & AGENCY OBLIGATIONS
- ------------------------------------------------------------------------------------------------------------------
FEDERAL AAA Aaa $ 3,000,000 Federal National Mortgage
AGENCIES--2.6% Association, 5.20% due
7/10/1998......................... $ 2,734,590 $ 2,900,760
- ------------------------------------------------------------------------------------------------------------------
US TREASURY NOTES & US Treasury Notes & Bonds:
BONDS--14.8% AAA Aaa 3,500,000 5.50% due 4/15/2000............... 3,310,781 3,148,355
AAA Aaa 2,000,000 8.50% due 11/15/2000................ 2,150,000 2,061,560
AAA Aaa 4,000,000 7.875% due 11/15/2004............... 3,970,760 4,011,240
AAA Aaa 4,000,000 8% due 11/15/2021................... 4,068,125 4,015,640
AAA Aaa 3,500,000 7.50% due 11/15/2024................ 3,378,874 3,347,960
------------ ------------
16,878,540 16,584,755
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT & AGENCY
OBLIGATIONS--17.4% 19,613,130 19,485,515
- ------------------------------------------------------------------------------------------------------------------
INDUSTRY CORPORATE BONDS & NOTES
- ------------------------------------------------------------------------------------------------------------------
BANKING--9.7% A- A3 2,000,000 First Interstate Bancorp, 11% due
3/05/1998......................... 2,402,040 2,127,520
A- A3 2,000,000 Huntington National Bank, 7.625% due
1/15/2003......................... 2,133,320 1,891,120
BBB+ Baa2 2,000,000 Mellon Bank Corp., 6.875% due
3/01/2003......................... 1,822,480 1,801,820
A+ A1 1,000,000 Norwest Corp., 6.625% due
3/15/2003......................... 1,003,060 894,970
A Aa3 2,000,000 Society National Bank, 6% due
4/25/1996......................... 1,953,480 1,964,120
A A2 2,000,000 World Savings & Loan Association,
9.90% due 7/01/2000............... 2,072,740 2,093,980
------------ ------------
11,387,120 10,773,530
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES-- Chrysler Financial Corp.:
CAPTIVE--2.9% A A3 1,000,000 7.13% due 9/30/1996............... 985,130 984,340
BBB+ A3 2,000,000 10.95% due 8/01/2017................ 2,202,640 2,195,940
------------ ------------
3,187,770 3,180,280
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES-- A+ A1 2,000,000 American General Finance Corp.,
CONSUMER--9.4% 7.70% due 11/15/1997.............. 1,977,660 1,965,340
Associates Corp. of North America:
AA- A1 2,500,000 8.80% due 8/01/1998............... 2,817,275 2,522,600
AA- A1 1,000,000 8.25% due 12/01/1999................ 996,740 994,150
A A2 2,000,000 Beneficial Corp., 6.68% due
10/14/1997........................ 2,000,000 1,998,800
A+ A1 2,000,000 CIT Group Holdings, Inc., 6.225% due
2/28/1997......................... 1,998,680 2,008,060
A+ A2 1,000,000 Transamerica Financial Corp., 6.80%
due 3/15/1999..................... 999,730 941,660
------------ ------------
10,790,085 10,430,610
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES-- Dean Witter, Discover & Co.:
OTHER--6.9% A A2 1,000,000 6.50% due 11/01/2005.............. 988,450 849,260
A A2 1,000,000 6.75% due 10/15/2013................ 966,720 814,060
AAA Aaa 1,000,000 General Electric Capital Corp.,
8.125% due 5/15/2012.............. 1,018,330 982,500
BBB+ A3 3,000,000 PaineWebber Group, Inc., 9.25% due
12/15/2001........................ 3,507,900 3,031,020
A+ A3 2,000,000 Torchmark Corp., 9.625% due
5/01/1998......................... 1,952,770 2,052,500
------------ ------------
8,434,170 7,729,340
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------
FOREIGN+--8.2% AA- A1 $ 1,000,000 AEGON, N.V., 8% due 8/15/2006 (2)... $ 990,870 $ 958,170
A+ A2 1,000,000 CRA Finance Ltd., 6.50% due
12/01/2003 (1).................... 1,004,510 875,430
Province of Quebec (Canada) (3):
A+ A1 1,000,000 8.80% due 4/15/2003............... 1,038,020 1,009,410
A+ A1 1,500,000 13% due 10/01/2013.................. 1,959,060 1,766,025
A+ A1 1,000,000 7.125% due 2/09/2024................ 840,480 803,540
AA A1 1,000,000 Republic of Italy, 6.875% due
9/27/2023 (3)..................... 972,070 787,720
A- A2 3,000,000 Kingdom of Thailand, 8.25% due
3/15/2002 (3)..................... 2,949,600 2,944,860
------------ ------------
9,754,610 9,145,155
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-- A+ A1 3,500,000 Bass America, Inc., 8.125% due
CONSUMER--8.5% 3/31/2002......................... 3,532,070 3,441,550
Grand Metropolitan Investment Corp.:
A+ A2 1,000,000 6.50% due 9/15/1999............... 1,000,000 929,690
A+ A2 1,000,000 8.625% due 8/15/2001................ 1,047,750 1,006,640
BBB+ Baa1 3,800,000 Sears, Roebuck & Co., 10% due
2/03/2012......................... 4,393,746 4,144,546
------------ ------------
9,973,566 9,522,426
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-- BP America Inc.:
ENERGY--6.3% AA- A1 2,000,000 7.875% due 5/15/2002.............. 2,110,760 1,955,240
AA+ Aa1 2,000,000 10% due 7/01/2018................... 2,156,880 2,169,460
A- A3 1,000,000 Burlington Resources, Inc., 9.875%
due 6/15/2010..................... 1,280,800 1,107,500
Texaco Capital Inc.:
A+ A1 1,000,000 6.875% due 7/15/1999................ 998,060 945,340
A+ A1 1,000,000 8.625% due 11/15/2031............... 1,045,390 993,930
------------ ------------
7,591,890 7,171,470
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-- BBB- Baa3 1,000,000 Applied Materials, Inc., 8% due
OTHER--10.0% 9/01/2004......................... 992,690 955,310
AA- Aa2 2,000,000 Archer-Daniels-Midland Co., 8.875%
due 4/15/2011..................... 2,155,230 2,079,680
A- A3 1,000,000 International Paper Co., 9.70% due
3/15/2000......................... 1,196,680 1,055,320
AAA Aaa 2,000,000 Johnson & Johnson Co., 8.72% due
11/01/2024........................ 2,019,140 2,023,420
AA Aa2 1,000,000 Kaiser Foundation Hospital, 9.55%
due 7/15/2005..................... 1,124,850 1,073,860
BBB- Baa3 4,000,000 Tele-Communications Inc., 9.80% due
2/01/2012......................... 4,201,240 4,000,840
------------ ------------
11,689,830 11,188,430
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Long Term Corporate Bond Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MOODY'S FACE VALUE
INDUSTRY RATINGS RATINGS AMOUNT ISSUE COST (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONCLUDED)
- ------------------------------------------------------------------------------------------------------------------
SUPRANATIONAL-- AAA Aaa $ 1,500,000 Asian Development Bank, 10.75% due
3.6% 6/01/1997....................... $ 1,580,525 $ 1,583,415
AAA Aaa 2,000,000 International Bank for
Reconstruction & Development,
12.375% due 10/15/2002.......... 2,432,280 2,461,900
------------- -------------
4,012,805 4,045,315
- ------------------------------------------------------------------------------------------------------------------
TRANSPORT Southwest Airlines, Inc.:
SERVICES--2.6% A- Baa1 2,000,000 9.40% due 7/01/2001............. 2,407,120 2,074,280
A- Baa1 1,000,000 7.875% due 9/01/2007.............. 998,750 935,530
------------- -------------
3,405,870 3,009,810
- ------------------------------------------------------------------------------------------------------------------
UTILITIES-- AA- Aa3 1,000,000 Pacific Bell, Inc., 8.70%
COMMUNICATIONS-- due 6/15/2001................... 1,049,800 1,019,600
0.9%
- ------------------------------------------------------------------------------------------------------------------
UTILITIES-- AA- A1 2,500,000 Consolidated Natural Gas Co.,
GAS--2.3% 8.75% due 6/01/1999............. 2,575,440 2,532,100
- ------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS &
NOTES--71.3% 83,852,956 79,748,066
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL 5,500,000 American Express Credit Corp.,
PAPER*--4.9% 5.875% due 1/03/1995............ 5,496,410 5,496,410
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE 5,553,000 UBS Securities Funding Inc.,
AGREEMENT**--5.0% purchased on 12/30/1994 to yield
5.75% to 1/03/1995.............. 5,553,000 5,553,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM
INVESTMENTS--9.9% 11,049,410 11,049,410
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.6%.......... $ 114,515,496 110,282,991
-------------
-------------
OTHER ASSETS LESS LIABILITIES--1.4% 1,595,222
-------------
NET ASSETS--100.0%................ $ 111,878,213
-------------
-------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
* Commercial Paper is traded on a discount basis; the interest rate shown is the discount rate paid at the time
of purchase by the Portfolio.
** Repurchase Agreements are fully collateralized by US Government Obligations.
+ Corresponding industry groups for foreign bonds:
(1) Industrial Mining.
(2) Insurance.
(3) Government Entity.
Ratings of issues have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
44
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE* DATE (NOTE 1A)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
BANK NOTES--3.2% $ 5,000,000 NationsBank Corp., N.C..................... 5.65 % 7/21/95 $ 4,962,500
14,000,000 PNC Bank Corp.............................. 5.15 2/22/95 13,977,692
- ------------------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES (COST--$18,993,725)....... 18,940,192
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL 15,000,000 ANZ (Delaware), Inc........................ 5.05 1/20/95 14,950,125
PAPER--61.9% 10,000,000 Abbey National North America Corp.......... 5.07 2/28/95 9,899,167
10,000,000 Abbey National North America Corp.......... 5.08 3/01/95 9,894,944
3,546,000 Allomon Funding Corp....................... 5.80 1/17/95 3,535,717
9,500,000 Avco Financial Services, Inc............... 5.68 2/14/95 9,427,167
5,000,000 BTR Dunlop Finance, Inc.................... 5.40 1/13/95 4,989,267
10,000,000 BTR Dunlop Finance, Inc.................... 5.50 1/17/95 9,971,500
5,000,000 Bankers Trust New York Corp................ 5.41 1/27/95 4,977,639
5,000,000 Bankers Trust New York Corp................ 5.41 1/31/95 4,974,000
15,000,000 Bankers Trust New York Corp................ 5.58 4/12/95 14,729,625
3,588,000 Bowater PLC................................ 5.73 1/09/95 3,582,289
3,760,000 Bowater PLC................................ 6.10 2/21/95 3,726,233
2,000,000 CS First Boston Inc........................ 5.50 1/25/95 1,991,694
1,500,000 CSW Credit, Inc............................ 5.50 1/25/95 1,493,771
5,000,000 CSW Credit, Inc............................ 4.95 2/01/95 4,972,958
10,000,000 CXC Inc.................................... 6.00 1/10/95 9,981,667
9,500,000 Cheltenham & Glouster Building Society..... 5.08 3/09/95 9,387,108
450,000 Ciba-Geigy Corp............................ 5.90 1/03/95 449,705
3,700,000 Deer Park Refining, L.P.................... 6.10 1/19/95 3,687,461
10,000,000 Deer Park Refining, L.P.................... 6.08 1/27/95 9,952,711
10,000,000 Ford Motor Credit Company.................. 5.67 2/13/95 9,925,000
5,000,000 General Electric Capital Corp.............. 5.50 1/09/95 4,992,333
12,000,000 General Electric Capital Corp.............. 5.38 1/18/95 11,963,900
8,000,000 General Electric Capital Corp.............. 5.03 1/23/95 7,969,333
10,000,000 Gillette Co., The.......................... 5.75 2/14/95 9,923,333
15,700,000 Goldman Sachs Group, L.P................... 5.15 3/01/95 15,535,063
10,237,000 Hanson Finance (UK) PLC.................... 5.40 1/17/95 10,207,825
10,000,000 International Lease Finance Corp........... 5.33 1/20/95 9,966,750
5,000,000 International Lease Finance Corp........... 5.07 2/21/95 4,955,833
6,000,000 Miles Inc.................................. 5.70 2/10/95 5,958,000
15,000,000 New Center Asset Trust..................... 5.44 1/19/95 14,952,500
10,000,000 New Center Asset Trust..................... 5.48 1/24/95 9,960,069
500,000 Panasonic Finance, Inc..................... 6.20 3/29/95 492,336
20,000,000 Preferred Receivables Funding Corp......... 6.10 1/05/95 19,979,667
4,109,000 Premium Funding, Inc. (Series A)........... 6.05 1/13/95 4,099,332
15,000,000 SBC Finance (Delaware) Inc................. 5.43 1/20/95 14,950,125
9,000,000 Santander Finance (Delaware) Inc........... 5.40 1/17/95 8,974,350
15,000,000 Societe Generale North America, Inc........ 5.40 1/23/95 14,942,500
3,400,000 Toshiba International Finance (UK) PLC..... 6.25 2/23/95 3,367,535
6,140,000 Transamerica Finance Corp.................. 5.32 1/03/95 6,136,248
5,000,000 Transamerica Finance Corp.................. 5.40 1/18/95 4,984,958
5,000,000 Transamerica Finance Corp.................. 5.80 2/17/95 4,959,167
5,000,000 U.S. Borax Inc............................. 5.70 2/07/95 4,967,933
10,000,000 U.S. Borax Inc............................. 5.65 2/08/95 9,933,333
11,000,000 WCP Funding Inc............................ 6.17 3/03/95 10,880,650
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (COST--$361,731,470) 361,552,821
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE* DATE (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MASTER NOTES+--1.4% $ 8,000,000 Goldman Sachs Group, L.P................... 6.07 % 5/26/95 $ 8,000,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL MASTER NOTES (COST--$8,000,000) 8,000,000
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT,
AGENCY & INSTRUMENTALITY 295,000 Federal Home Loan Bank..................... 3.78 1/26/95 293,761
OBLIGATIONS-- 3,000,000 US Treasury Bills.......................... 3.355 1/12/95 2,994,562
DISCOUNT--5.6% 2,300,000 US Treasury Bills.......................... 3.44 1/12/95 2,295,831
15,000,000 US Treasury Bills.......................... 4.905 3/16/95 14,828,050
12,400,000 US Treasury Bills.......................... 6.335 7/06/95 12,001,926
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT, AGENCY &
INSTRUMENTALLY OBLIGATIONS--
DISCOUNT (COST--$32,435,213) 32,414,130
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT,
AGENCY & INSTRUMENTALITY 10,000,000 Federal Farm Credit Bank................... 5.19 3/01/95 9,981,250
OBLIGATIONS-- 3,000,000 Federal Home Loan Bank+.................... 5.93 6/21/95 3,000,000
NON-DISCOUNT--29.7% 3,000,000 Federal Home Loan Bank..................... 4.625 8/09/95 2,955,900
6,000,000 Federal Home Loan Bank+.................... 5.93 12/28/95 6,000,000
6,000,000 Federal Home Loan Bank+.................... 5.96 6/17/96 6,000,000
2,000,000 Federal Home Loan Bank+.................... 5.96 6/21/96 2,000,000
8,000,000 Federal Home Loan Bank+.................... 5.82 9/12/96 7,992,809
3,000,000 Federal Home Loan Mortgage Corp............ 4.635 8/09/95 2,955,900
19,000,000 Federal Home Loan Mortgage Corp.+.......... 5.86 9/01/95 18,997,577
5,000,000 Federal Home Loan Mortgage Corp.+.......... 5.87 9/01/95 4,999,681
5,000,000 Federal National Mortgage Association+..... 5.70 6/01/95 4,999,795
8,000,000 Federal National Mortgage Association+..... 5.83 5/13/96 8,000,000
5,000,000 Federal National Mortgage Association+..... 5.83 5/24/96 5,000,000
25,000,000 Federal National Mortgage Association+..... 6.093 10/11/96 25,000,000
8,000,000 Federal National Mortgage Association+..... 5.95 5/19/97 8,000,000
8,000,000 Federal National Mortgage Association+..... 6.00 5/14/98 8,000,000
2,100,000 Student Loan Marketing Association+........ 6.32 3/20/95 2,102,272
2,000,000 Student Loan Marketing Association+........ 6.32 3/27/95 2,002,598
2,000,000 Student Loan Marketing Association+........ 6.30 4/24/95 2,003,032
2,000,000 Student Loan Marketing Association+........ 6.02 6/02/95 2,001,814
15,000,000 Student Loan Marketing Association+........ 5.90 5/14/96 15,015,751
5,000,000 Student Loan Marketing Association+........ 6.08 1/14/97 5,000,000
</TABLE>
46
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Money Reserve Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE* DATE (NOTE 1A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
US GOVERNMENT,
AGENCY & $ 5,000,000 US Treasury Notes.......................... 3.875% 3/31/95 $ 4,981,250
INSTRUMENTALITY 5,000,000 US Treasury Notes.......................... 3.875 4/30/95 4,963,280
OBLIGATIONS-- 1,250,000 US Treasury Notes.......................... 4.125 6/30/95 1,235,546
NON-DISCOUNT 7,500,000 US Treasury Notes.......................... 3.875 8/31/95 7,352,340
(CONCLUDED)
1,000,000 US Treasury Notes.......................... 4.25 12/31/95 970,937
1,500,000 US Treasury Notes.......................... 4.00 1/31/96 1,448,438
500,000 US Treasury Notes.......................... 5.875 5/31/96 489,063
- ------------------------------------------------------------------------------------------------------------------
TOTAL US GOVERNMENT, AGENCY & INSTRUMENTALITY
OBLIGATIONS--NON-DISCOUNT (COST--$ 173,871,994) 173,449,233
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST--$595,032,402)--101.8%............... 594,356,376
LIABILITIES IN EXCESS OF OTHER
ASSETS--(1.8)%............................. (10,363,907)
-------------
NET ASSETS--100.0%......................... $ 583,992,469
-------------
-------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* 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, 1994.
+ Variable Rate Notes.
See Notes to Financial Statements.
</TABLE>
47
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALUMINUM 60,000 Aluminum Co. of America.......... $ 5,097,392 $ 5,197,500 0.5%
- ------------------------------------------------------------------------------------------------------------------
APPLIANCES 700,000 Singer Co. N.V................... 19,060,721 20,912,500 1.9
750,000 Sunbeam-Oster Inc................ 14,853,379 19,312,500 1.8
------------ ------------ ----------
33,914,100 40,225,000 3.7
- ------------------------------------------------------------------------------------------------------------------
AUTO & TRUCK 240,000 Consorcio G Grupo Dina, S.A. de
C.V. (ADR) (a)................. 3,842,226 2,280,000 0.2
- ------------------------------------------------------------------------------------------------------------------
BANKING 300,000 Bank of New York, Inc............ 8,042,140 8,700,000 0.8
40,000 + Bank of New York, Inc.
(Warrants) (b)................. 301,250 385,000 0.0
250,000 BankAmerica Corp................. 11,273,027 9,875,000 0.9
450,000 Espirito Santo Financial Holdings
S.A. (ADR) (a)................. 6,335,990 6,018,750 0.6
200,000 Grupo Financiero Serfin, S.A. de
C.V. (ADR) (a)................. 4,922,735 1,500,000 0.1
------------ ------------ ----------
30,875,142 26,478,750 2.4
- ------------------------------------------------------------------------------------------------------------------
BEVERAGES 35,000 Panamerican Beverages, Inc....... 1,272,599 1,106,875 0.1
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS 185,000 du Pont (E.I.) de Nemours &
Co............................. 10,681,535 10,406,250 1.0
295,000 Eastman Chemical Co.............. 15,391,496 14,897,500 1.4
200,000 + IMC Fertilizer Group, Inc........ 8,103,348 8,650,000 0.8
150,000 Rohm and Haas Co................. 8,464,019 8,568,750 0.8
------------ ------------ ----------
42,640,398 42,522,500 4.0
- ------------------------------------------------------------------------------------------------------------------
COMMUNICATION
EQUIPMENT 450,000 ADC Telecommunications Inc....... 13,852,584 22,275,000 2.1
200,000 DSC Communications Corp.......... 4,249,026 7,200,000 0.7
90,000 Motorola, Inc.................... 4,434,830 5,208,750 0.5
120,000 Tellabs, Inc..................... 2,595,169 6,660,000 0.6
------------ ------------ ----------
25,131,609 41,343,750 3.9
- ------------------------------------------------------------------------------------------------------------------
COMPUTER EQUIPMENT 45,000 International Business Machines
Corp........................... 3,197,233 3,307,500 0.3
300,000 + Solectron Corp................... 7,422,076 8,250,000 0.8
------------ ------------ ----------
10,619,309 11,557,500 1.1
- ------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES 735,000 Computer Sciences Corp........... 20,491,418 37,485,000 3.5
100,000 General Motors Corp. (Class E)... 3,727,410 3,850,000 0.4
------------ ------------ ----------
24,218,828 41,335,000 3.9
- ------------------------------------------------------------------------------------------------------------------
CONSUMER- 150,000 Duracell International Inc....... 6,161,382 6,506,250 0.6
MISCELLANEOUS
- ------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES 270,000 Block (H&R), Inc................. 12,177,356 10,023,750 0.9
- ------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 300,000 Grainger (W.W.) Inc.............. 17,950,826 17,325,000 1.6
225,000 Siebe PLC........................ 1,966,059 1,959,066 0.2
------------ ------------ ----------
19,916,885 19,284,066 1.8
- ------------------------------------------------------------------------------------------------------------------
ENERGY--RELATED 500,000 + California Energy Co., Inc....... 8,941,083 7,812,500 0.7
- ------------------------------------------------------------------------------------------------------------------
ENGINEERING &
CONSTRUCTION 365,000 + Empress ICA Sociedad
Controladora, S.A. de C.V.
(ADR) (a)...................... 7,667,767 5,657,500 0.5
550,000 Huntingdon International Holdings
PLC (ADR) (a).................. 12,358,643 1,443,750 0.1
------------ ------------ ----------
20,026,410 7,101,250 0.6
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD US STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL 1,600,000 + Wheelabrator Technologies,
Inc............................ $ 19,656,504 $ 23,600,000 2.2%
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE 750,000 Humana Inc....................... 14,082,161 16,968,750 1.6
330,000 Physician Corp. of America....... 6,300,097 6,682,500 0.6
50,000 Vivra Inc........................ 907,763 1,400,000 0.1
------------ ------------ ----------
21,290,021 25,051,250 2.3
- ------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 400,000 Procter & Gamble Co.............. 23,042,010 24,800,000 2.3
- ------------------------------------------------------------------------------------------------------------------
INSURANCE 175,000 ITT Corp......................... 14,983,386 15,509,375 1.4
- ------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY 100,000 Allied-Signal, Inc............... 2,917,166 3,400,000 0.3
- ------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT 899,000 Danka Business Systems PLC
(ADR) (a)...................... 13,417,213 19,216,125 1.8
- ------------------------------------------------------------------------------------------------------------------
OIL--INTEGRATED 210,000 Mobil Corp....................... 16,394,607 17,692,500 1.6
200,000 Phillips Petroleum Co............ 6,379,588 6,550,000 0.6
120,000 Royal Dutch Petroleum Co. N.V.
(ADR) (a)...................... 10,840,436 12,900,000 1.2
------------ ------------ ----------
33,614,631 37,142,500 3.4
- ------------------------------------------------------------------------------------------------------------------
PACKAGING 240,000 Crown Cork & Seal Co., Inc....... 4,220,073 9,060,000 0.8
- ------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS 90,000 American Home Products Corp...... 5,611,046 5,647,500 0.5
425,000 Merck & Co., Inc................. 15,352,662 16,203,125 1.5
------------ ------------ ----------
20,963,708 21,850,625 2.0
- ------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY 150,000 Eastman Kodak Co................. 7,443,671 7,162,500 0.7
- ------------------------------------------------------------------------------------------------------------------
RAILROADS 505,000 + Southern Pacific Rail Co......... 10,388,423 9,153,125 0.8
- ------------------------------------------------------------------------------------------------------------------
RETAIL 120,000 Phillips-Van Heusen Corp......... 3,190,345 1,830,000 0.2
65,000 + Revco D.S., Inc.................. 1,505,647 1,535,625 0.1
------------ ------------ ----------
4,695,992 3,365,625 0.3
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 54,000 Empress Telex-Chile S.A. (ADR)
(a)............................ 1,064,467 573,750 0.1
- ------------------------------------------------------------------------------------------------------------------
TIRE & RUBBER 350,000 Cooper Tire and Rubber Co........ 5,303,112 8,268,750 0.8
- ------------------------------------------------------------------------------------------------------------------
UTILITIES--COMMUNICATIONS 81,900 ALC Communication Corp........... 2,330,655 2,549,138 0.2
300,000 GTE Corp......................... 9,653,208 9,112,500 0.8
750,840 LDDS Communications Inc. (Class
A)............................. 16,571,928 14,547,525 1.3
540,000 MCI Communications Corp.......... 15,437,920 9,922,500 0.9
285,000 + Southwestern Bell Corp........... 12,158,693 11,506,875 1.1
60,000 Telefonos de Mexico, S.A. de C.V.
(ADR) (a) (Telmex)............. 3,679,512 2,460,000 0.2
4,600,000 Telefonos de Mexico, S.A. de C.V.
(Class L) (Telmex)............. 8,849,263 9,575,510 0.9
------------ ------------ ----------
68,681,179 59,674,048 5.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL US STOCKS 496,516,275 530,602,364 49.0
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
49
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS+++ COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
AUSTRALIA 425,250 Coles Myer Ltd. (18)............. $ 1,817,155 $ 1,443,884 0.1%
358,321 National Australia Bank Ltd.
(3)............................ 2,262,879 2,866,591 0.3
480,000 News Corp. Ltd. (ADR) (a) (25)... 9,029,512 7,500,000 0.7
240,000 News Corp. Ltd. (Preferred) (ADR)
(a) (25)....................... 3,950,452 3,330,000 0.3
11,481 Pacific Dunlop, Ltd. (15)........ 32,093 30,526 0.0
------------ ------------ ----------
17,092,091 15,171,001 1.4
- ------------------------------------------------------------------------------------------------------------------
CANADA 125,000 Hudson Bay Co. (Ordinary) (18)... 3,259,447 2,228,005 0.2
225,000 NOVA Corp. (5)................... 2,364,525 2,081,250 0.2
400,000 Semi-Tech Corp.++++
(Receipts)**** (1)............. 4,218,587 1,568,516 0.1
------------ ------------ ----------
9,842,559 5,877,771 0.5
- ------------------------------------------------------------------------------------------------------------------
CHILE 87,600 + Banco O'Higgins
(ADR) (a) (3).................. 1,298,388 1,500,150 0.1
70,250 Cristalerias de Chile S.A. (ADR)
(a) (7)........................ 1,491,068 1,106,437 0.1
136,400 ++ Distribuidora Chilectra
Metropolitana S.A. (ADR) (a)
(23)........................... 3,929,378 6,683,600 0.6
------------ ------------ ----------
6,718,834 9,290,187 0.8
- ------------------------------------------------------------------------------------------------------------------
DENMARK 205,000 + Tele Danmark A/S (ADR) (a)
(22)........................... 4,953,220 5,227,500 0.5
- ------------------------------------------------------------------------------------------------------------------
FRANCE 21,779 + Compagnie Generale des
Eaux (24)...................... 2,039,204 2,119,899 0.2
31,135 + Eramet S.A. (28)................. 2,044,478 2,014,549 0.2
------------ ------------ ----------
4,083,682 4,134,448 0.4
- ------------------------------------------------------------------------------------------------------------------
HONG KONG 404,269 HSBC Holdings PLC (3)............ 2,471,344 4,363,555 0.4
1,100,000 Hutchison Whampoa, Ltd. (15)..... 3,045,923 4,450,620 0.4
1,700,000 Johnson Electric Co. (8)......... 3,387,675 3,900,595 0.4
3,000,000 Shanghai Petrochemical Company,
Ltd. (5)....................... 1,003,375 853,154 0.1
------------ ------------ ----------
9,908,317 13,567,924 1.3
- ------------------------------------------------------------------------------------------------------------------
INDONESIA 4,670 PT Indonesian Satellite (ADR)
(a) (26)....................... 149,673 166,952 0.0
- ------------------------------------------------------------------------------------------------------------------
ITALY 125,000 Istituto Mobiliare Italiano
S.p.A. (3)..................... 2,744,894 2,296,875 0.2
- ------------------------------------------------------------------------------------------------------------------
JAPAN 75,000 Fujitsu Ltd. (9)................. 826,620 761,307 0.1
175,000 Hitachi Cable Ltd. (9)........... 1,740,338 1,739,447 0.2
25,000 Kyocera Corp. (9)................ 1,851,829 1,856,784 0.2
450,000 Mitsubishi Heavy Industries, Ltd.
(9)............................ 3,090,130 3,197,487 0.3
60,000 NEC Corp. (19)................... 769,767 687,437 0.1
40,000 TDK Corp. (9).................... 1,887,142 1,941,709 0.2
------------ ------------ ----------
10,165,826 10,184,171 1.1
- ------------------------------------------------------------------------------------------------------------------
MEXICO 720,000 Cifra, S.A. de C.V. 'C' (18)..... 1,891,613 1,392,980 0.1
633,200 ++ Grupo Carso, S.A. de C.V.
(ADR) (a) (15)................. 5,523,580 9,577,150 0.9
------------ ------------ ----------
7,415,193 10,970,130 1.0
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
50
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
COUNTRY HELD FOREIGN STOCKS & WARRANTS+++ COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
NETHERLANDS 30,000 + Unilever N.V. (27)............... 3,480,435 3,495,000 0.3
- ------------------------------------------------------------------------------------------------------------------
NORWAY 120,000 Norsk Hydro A.S. (10)............ $ 4,696,399 $ 4,695,000 0.4%
- ------------------------------------------------------------------------------------------------------------------
SWEDEN 20,000 Electrolux AB (1)................ 1,017,745 1,016,748 0.1
120,000 L.M. Ericsson Telephone Co.
(ADR) (a) (6).................. 6,885,735 6,615,000 0.6
------------ ------------ ----------
7,903,480 7,631,748 0.7
- ------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM 60,440 British Petroleum Co. PLC
(ADR) (a) (16)................. 4,480,844 4,827,645 0.5
75,000 Hanson PLC (Sponsored)
(ADR) (a) (15)................. 1,659,618 1,350,000 0.1
150,000 Reuters Holdings PLC
(ADR) (a) (11)................. 3,814,272 6,581,250 0.6
------------ ------------ ----------
9,954,734 12,758,895 1.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN STOCKS & WARRANTS 99,109,337 105,467,602 9.8
- ------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT* FOREIGN BONDS+++
- ------------------------------------------------------------------------------------------------------------------
AUSTRALIA Queensland Treasury Global Notes (12):
A$ 34,000,000 8% due 5/14/1997.............. 24,946,567 25,174,170 2.3
6,200,000 8% due 7/14/1999.............. 4,656,663 4,417,319 0.4
-------------- -------------- ----------
29,603,230 29,591,489 2.7
- ------------------------------------------------------------------------------------------------------------------
GERMANY DM 38,000,000 Bundes Obligation, 6.375% due
5/20/1998 (12).............. 24,061,995 24,033,871 2.2
21,000,000 Deutschland Republic Bond, 8%
due 7/22/2002 (12).......... 13,768,300 13,811,434 1.3
-------------- -------------- ----------
37,830,295 37,845,305 3.5
- ------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM UK Treasury Gilt (12):
Pound 3,250,000 8.75% due 9/01/1997........... 5,607,961 5,130,852 0.5
Sterling 1,200,000 7.25% due 3/30/1998........... 1,792,448 1,809,904 0.2
5,000,000 8% due 6/10/2003.............. 8,373,485 7,465,420 0.7
-------------- -------------- ----------
15,773,894 14,406,176 1.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN BONDS 83,207,419 81,842,970 7.6
- ------------------------------------------------------------------------------------------------------------------
INDUSTRY US CORPORATE BONDS
- ------------------------------------------------------------------------------------------------------------------
COMPUTERS US$ 5,000,000 Texas Instruments Inc., 9% due
3/15/2001................... 5,143,400 5,156,250 0.5
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES 10,000,000 Virginia Electric & Power Co.,
8.45% due 10/30/2003........ 10,000,000 9,937,500 0.9
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 10,000,000 Associate Corp. of North
America, 7.625% due
6/01/2004................... 9,969,700 9,400,000 0.9
- ------------------------------------------------------------------------------------------------------------------
INSURANCE 5,000,000 ITT Hartford Financial, 8.30%
due 12/01/2001.............. 5,107,750 4,956,250 0.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL US CORPORATE BONDS 30,220,850 29,450,000 2.8
- ------------------------------------------------------------------------------------------------------------------
51
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE US & FOREIGN GOVERNMENT & AGENCY VALUE PERCENT OF
AMOUNT* OBLIGATIONS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT $ 5,000,000 Hydro Electric Quebec, 6.35%
OBLIGATIONS due 1/15/2002 (8)........... $ 5,000,000 $ 4,462,500 0.4%
5,000,000 Republic of Italy, 8.75% due
2/08/2001 (12).............. 5,373,050 5,021,880 0.5
-------------- -------------- ----------
10,373,050 9,484,380 0.9
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT
AGENCY OBLIGATIONS Federal National Mortgage
Association:
10,000,000 7.85% due 9/10/2004........... 9,985,937 9,582,810 0.9
15,000,000 8% due 1/01/2020.............. 14,322,656 14,371,875 1.3
10,373,145 7% due 5/01/2024.............. 9,565,985 9,413,629 0.9
-------------- -------------- ----------
33,874,578 33,368,314 3.1
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT
OBLIGATIONS US Treasury Notes:
40,000,000 7.875% due 8/15/2001.......... 39,230,800 40,068,760 3.7
6,000,000 7.50% due 11/15/2001.......... 6,023,437 5,891,250 0.5
25,000,000 6.25% due 2/15/2003........... 25,710,937 22,617,200 2.1
35,000,000 5.75% due 8/15/2003........... 36,416,406 30,422,665 2.8
US Treasury STRIPS++:
15,000,000 6.35%** due 5/15/2000......... 11,097,715 9,970,470 0.9
20,000,000 7.768%** due 11/15/2004....... 9,323,447 9,269,040 0.9
-------------- -------------- ----------
127,802,742 118,239,385 10.9
- ------------------------------------------------------------------------------------------------------------------
TOTAL US & FOREIGN GOVERNMENT
& AGENCY OBLIGATIONS 172,050,370 161,092,079 14.9
- ------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL
PAPER*** 20,000,000 Ciesco L.P., 6% due
2/21/1995................... 19,826,667 19,826,667 1.8
48,010,000 General Electric Capital
Corp., 5.80% due
1/03/1995................... 47,986,795 47,986,795 4.4
35,000,000 Goldman Sachs Group L.P.,
5.95% due 1/27/1995......... 34,843,813 34,843,813 3.2
8,000,000 Matterhorn Capital Corp.,
5.94% due 1/10/1995......... 7,986,800 7,986,800 0.7
30,000,000 New Center Asset Trust, 5.75%
due 1/20/1995............... 29,904,167 29,904,167 2.8
-------------- -------------- ----------
140,548,242 140,548,242 12.9
- ------------------------------------------------------------------------------------------------------------------
US GOVERNMENT Federal National Mortgage
AGENCY OBLIGATIONS*** Association:
20,000,000 5.72% due 1/26/1995........... 19,917,378 19,917,378 1.8
10,000,000 5.77% due 1/27/1995........... 9,956,725 9,956,725 0.9
-------------- -------------- ----------
29,874,103 29,874,103 2.7
- ------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM SECURITIES 170,422,345 170,422,345 15.6
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 1,051,526,596 1,078,877,360 99.7
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Multiple Strategy Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIUMS VALUE PERCENT OF
NUMBER OF SHARES OPTIONS WRITTEN RECEIVED (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN 45,000 ADC Telecommunications, Inc.
expiring January 1995 at
US$ 50...................... $ (57,201) $ (50,625) 0.0%
20,000 ITT Corp., expiring January
1995 at US$ 90.............. (20,274) (22,500) 0.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS WRITTEN (77,475) (73,125) 0.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, NET OF
OPTIONS WRITTEN............. $1,051,449,121 1,078,804,235 99.7
--------------
--------------
OTHER ASSETS LESS
LIABILITIES................. 3,278,672 0.3
-------------- ----------
NET ASSETS.................... $1,082,082,907 100.0%
-------------- ----------
-------------- ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
* Denominated in US dollars unless otherwise indicated.
** Represents the yield-to-maturity on this zero coupon issue.
*** Commercial paper and certain 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.
**** Receipts evidence payment by the Portfolio of 70% of the purchase price of Class A shares of International
Semi-Tech Corp. The Portfolio is obligated to pay the remaining 30%, approximately $1,600,000, during the next
year.
(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.
++ STRIPS--Separate Trading of Registered Interest and Principal of Securities.
++++ Formerly named International Semi-Tech Corp.
+ Non-Income producing security.
++ Restricted securities as to resale. The value of the Fund's investment in restricted securities was
approximately $16,261,000, representing 1.5% of net assets.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
ISSUE ACQUISITION DATE COST (NOTE 1A)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Distribuidora Chilectra Metropolitana S.A. (ADR) 2/12/1992 $ 3,929,378 $ 6,683,600
Grupo Carso, S.A. de C.V. (ADR) 11/27/1991 5,523,580 9,577,150
- ------------------------------------------------------------------------------------------------------------------
TOTAL $ 9,452,958 $ 16,260,750
----------- ------------
----------- ------------
</TABLE>
- --------------------------------------------------------------------------------
+++ Corresponding industry groups for foreign stocks and bonds:
<TABLE>
<C> <S>
(1) Appliances
(2) Auto--Parts
(3) Banking
(4) Beverages
(5) Chemicals
(6) Communication Equipment
(7) Containers
(8) Electrical Equipment
(9) Electronics
(10) Energy--Related
(11) Financial Services
(12) Government Entities
(13) Industrial Components
(14) Insurance
(15) Multi-Industry
(16) Oil--Integrated
(17) Real Estate
(18) Retail
(19) Semiconductors
(20) Soap
(21) Tools
(22) Utilities--Communications
(23) Utilities--Electric
(24) Utilities--Water
(25) Media--Publishing
(26) Telecommunications
(27) Food Processing
(28) Metals
</TABLE>
See Notes to Financial Statements.
53
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Natural Resources Portfolio
Schedule of Investments as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS COST (NOTE 1A) NET ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALUMINIUM 9,000 Alcan Aluminium Ltd.................. $ 188,505 $ 228,375 1.1%
5,000 Reynolds Metals Co................... 234,537 245,000 1.1
----------- ----------- ----------
423,042 473,375 2.2
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS 55,000 Asahi Chemical Industry Co., Ltd..... 405,681 422,312 2.0
3,300 Dow Chemical Co...................... 227,401 221,925 1.0
5,700 duPont (E.I.) de Nemours & Co........ 280,444 320,625 1.5
----------- ----------- ----------
913,526 964,862 4.5
- ------------------------------------------------------------------------------------------------------------------
DIVERSIFIED RESOURCES
COMPANIES 13,000 Canadian Pacific Ltd................. 207,155 195,000 0.9
13,500 Coastal Corp......................... 376,540 347,625 1.6
14,000 Cyprus Amax Minerals Co.............. 413,974 365,750 1.7
20,000 Freeport-McMoRan Inc................. 392,228 355,000 1.7
40,600 Norcen Energy Corp................... 679,820 481,231 2.2
29,000 + Renison Goldfields Consolidated
Ltd................................ 115,519 110,156 0.5
----------- ----------- ----------
2,185,236 1,854,762 8.6
- ------------------------------------------------------------------------------------------------------------------
GOLD 40,500 + Delta Gold N.L....................... 87,453 88,536 0.4
86,000 Newcrest Mining Ltd.................. 389,776 383,336 1.8
10,613 Newmont Mining Corp.................. 452,445 382,068 1.8
24,000 Placer Dome Inc...................... 573,621 522,000 2.4
17,000 + Santa Fe Pacific Gold Corp........... 251,745 218,875 1.0
----------- ----------- ----------
1,755,040 1,594,815 7.4
- ------------------------------------------------------------------------------------------------------------------
METALS & MINING 3,900 Asarco Inc........................... 109,129 111,150 0.5
14,000 CRA Ltd.............................. 174,887 193,180 0.9
2,565 + Eramet S.A........................... 165,349 165,965 0.8
16,000 Falconbridge Ltd..................... 216,804 279,481 1.3
1,125 Freeport-McMoRan Copper &
Gold Inc........................... 26,643 23,906 0.1
188,000 M.I.M. Holdings Ltd.................. 417,352 313,336 1.5
31,000 Noranda Inc.......................... 609,550 585,698 2.7
6,100 Phelps Dodge Corp.................... 336,581 377,438 1.8
34,000 The RTZ Corp. PLC.................... 434,877 441,393 2.1
8,000 + Trelleborg 'B' Fria.................. 109,009 117,047 0.5
79,000 Western Mining Corp. Holdings Ltd.... 451,989 456,856 2.1
----------- ----------- ----------
3,052,170 3,065,450 14.3
- ------------------------------------------------------------------------------------------------------------------
OIL & GAS PRODUCERS 82,000 Ampolex Ltd.......................... 256,864 221,211 1.0
7,500 Anadarko Petroleum Corp.............. 366,825 288,750 1.3
13,500 Apache Corp.......................... 361,767 337,500 1.6
8,800 Burlington Resources Inc............. 344,579 308,000 1.4
17,000 Enron Oil & Gas Co................... 364,160 318,750 1.5
61,000 Enterprise Oil PLC................... 389,546 374,223 1.7
5,000 The Louisiana Land and
Exploration Co..................... 194,446 181,875 0.9
</TABLE>
54
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Natural Resources Portfolio
Schedule of Investments as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
OIL & GAS PRODUCERS
(CONCLUDED) 12,000 Oryx Energy Co....................... $ 199,885 $ 142,500 0.7%
41,000 Ranger Oil Ltd....................... 273,436 240,875 1.1
11,000 Sonat Inc............................ 350,194 308,000 1.4
6,300 + Triton Energy Corp................... 204,967 214,200 1.0
8,200 Vastar Resources Inc................. 224,963 203,975 1.0
----------- ----------- ----------
3,531,632 3,139,859 14.6
- ------------------------------------------------------------------------------------------------------------------
OIL--INTEGRATED 8,000 Amoco Corp........................... 440,946 473,000 2.2
5,000 Exxon Corp........................... 328,215 303,750 1.4
8,000 Norsk Hydro A.S...................... 208,431 313,000 1.5
26,300 Petro-Canada......................... 219,904 213,291 1.0
6,500 Phillips Petroleum Co................ 198,217 212,875 1.0
3,000 Royal Dutch Petroleum Co............. 282,247 322,500 1.5
12,000 Societe Nationale Elf Aquitaine
(ADS)**............................ 428,621 423,000 2.0
6,000 Total S.A. (Class B)................. 355,612 349,062 1.6
17,000 YPF S.A. (ADS)**..................... 422,432 363,375 1.7
----------- ----------- ----------
2,884,625 2,973,853 13.9
- ------------------------------------------------------------------------------------------------------------------
OIL SERVICES 11,400 Baker Hughes, Inc.................... 218,655 208,050 1.0
4,100 + Coflexip (ADS)**..................... 88,150 94,300 0.4
16,000 IHC Caland........................... 361,446 405,262 1.9
26,200 Rowan Companies, Inc................. 243,045 160,475 0.8
10,200 Schlumberger Ltd..................... 633,288 513,825 2.4
9,300 Tidewater Inc........................ 188,402 172,050 0.8
----------- ----------- ----------
1,732,986 1,553,962 7.3
- ------------------------------------------------------------------------------------------------------------------
PAPER & PULP 10,800 + Aracruz Celulose S.A. (ADS)**........ 115,506 137,700 0.6
7,900 Georgia-Pacific Corp................. 576,942 564,850 2.6
6,000 International Paper.................. 403,170 452,250 2.1
6,000 Metsa Serla OY 'B'................... 262,339 263,876 1.2
3,900 Mo Och Domsjo AB Co.................. 154,099 181,963 0.9
7,200 Scott Paper Co....................... 284,808 497,700 2.3
8,000 Union Camp Corp...................... 346,466 377,000 1.8
12,800 Weyerhaeuser Co...................... 526,423 480,000 2.2
5,000 Willamette Industries, Inc........... 209,375 235,000 1.1
----------- ----------- ----------
2,879,128 3,190,339 14.8
- ------------------------------------------------------------------------------------------------------------------
PLANTATIONS 59,000 Golden Hope Plantations BHD.......... 109,022 107,714 0.5
38,000 Kuala Lumpur Kepong BHD.............. 77,754 101,234 0.5
----------- ----------- ----------
186,776 208,948 1.0
- ------------------------------------------------------------------------------------------------------------------
POWER GENERATION 22,000 Destec Energy........................ 357,261 233,750 1.1
- ------------------------------------------------------------------------------------------------------------------
REFINING 22,500 Total Petroleum (North America),
Ltd................................ 331,454 281,250 1.3
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUNDS, INC.
Natural Resources Portfolio
Schedule of Investments as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE PERCENT OF
INDUSTRY HELD STOCKS COST (NOTE 1A) NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
STEEL 12,000 Allegheny Ludlum Corp................ $ 283,352 $ 225,000 1.1%
2,600 + Koninklijke Nederlansche Hoogovens en
Staafabrieken N.V.................. 110,446 118,209 0.6
68,000 + Sumitomo Metal Industries, Ltd....... 219,239 220,744 1.0
----------- ----------- ----------
613,037 563,953 2.7
- ------------------------------------------------------------------------------------------------------------------
WOOD 12,000 Louisiana-Pacific Corp............... 496,720 327,000 1.5
- ------------------------------------------------------------------------------------------------------------------
TOTAL STOCKS 21,342,633 20,426,178 95.2
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS.................... $21,342,633 20,426,178 95.2
-----------
-----------
OTHER ASSETS LESS LIABILITIES........ 1,028.466 4.8
----------- ----------
NET ASSETS........................... $21,454,644 100.0%
----------- ----------
----------- ----------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
+ Non-income producing security.
* American Depositary Receipt (ADR).
** American Depositary Share (ADS).
See Notes to Financial Statements.
</TABLE>
56
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Assets and Liabilities as of December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GLOBAL GROWTH
BALANCED STOCK STRATEGY STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value* (Note 1a).......................... $ 75,137,693 $ 208,466,488 $ 223,593,711 $ 99,764,380
Cash...................................................... 12,446 -- -- 1,971,048
Receivable for options written............................ -- 12,096 -- --
Interest receivable....................................... 911,145 -- 1,767,370 216,071
Dividends receivable...................................... 72,126 290,614 427,520 119,065
Receivable for securities sold............................ -- -- 650,228 --
Receivable for capital shares sold........................ 92,899 545,139 280,752 1,187,691
Unrealized appreciation on forward foreign exchange
contracts (Note 1e)..................................... -- -- 247,626 --
Prepaid registration fees and other assets (Note 1d)...... 1,729 3,484 2,783 2,125
------------- ------------- ------------- -------------
Total assets............................................ 76,228,038 209,317,821 226,969,990 103,260,380
------------- ------------- ------------- -------------
LIABILITIES:
Call options written, at value (premiums
received--$12,096) (Notes 1a & 1e)...................... -- 11,250 -- --
Payable for capital shares redeemed....................... 283,165 1,214,751 1,428,013 1,502,420
Payable for securities purchased.......................... -- 1,177,872 841,708 --
Payable to investment adviser (Note 2).................... 20,794 55,653 61,380 27,411
Accrued expenses and other liabilities.................... 30,830 211,017 1,145,646 28,935
------------- ------------- ------------- -------------
Total liabilities....................................... 334,789 2,670,543 3,476,747 1,558,766
------------- ------------- ------------- -------------
NET ASSETS................................................ $ 75,893,249 $ 206,647,278 $ 223,493,243 $ 101,701,614
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
NET ASSETS CONSIST OF:
Common Stock, $0.10 par value+............................ $ 571,859 $ 954,995 $ 1,537,143 $ 529,570
Paid-in capital in excess of par.......................... 71,229,025 178,335,530 215,228,257 102,414,653
Undistributed investment income--net...................... 1,820,627 1,452,601 3,473,834 928,765
Undistributed (accumulated) realized capital gains
(losses) on investments and foreign currency
transactions--net (Note 5).............................. 2,637,145 14,558,151 3,125,118 6,082,186
Unrealized appreciation (depreciation) on investments and
foreign currency transactions--net...................... (365,407) 11,346,001 128,891 (8,253,560)
------------- ------------- ------------- -------------
NET ASSETS................................................ $ 75,893,249 $ 206,647,278 $ 223,493,243 $ 101,701,614
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Capital shares outstanding................................ 5,718,593 9,549,946 15,371,427 5,295,703
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net asset value, offering and redemption price per
share................................................... $ 13.27 $ 21.64 $ 14.54 $ 19.20
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
*Identified cost.......................................... $ 75,503,099 $ 197,121,902 $ 223,718,704 $ 108,017,940
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
+Authorized shares........................................ 100,000,000 100,000,000 100,000,000 100,000,000
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
See Notes to Financial Statements.
</TABLE>
57
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Assets and Liabilities as of December 31, 1994 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
HIGH GOVERNMENT CORPORATE MONEY
YIELD BOND BOND RESERVE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value* (Note 1a)........................ $ 80,418,505 $ 215,480,893 $ 110,282,991 $ 594,356,376
Cash.................................................... 471 647 141,732 79,008
Receivable for options written.......................... -- -- -- --
Interest receivable..................................... 2,007,901 3,855,357 2,063,249 1,951,219
Dividends receivable.................................... -- -- -- --
Receivable for securities sold.......................... -- -- -- --
Receivable for capital shares sold...................... 289,480 113,374 3,140 --
Unrealized appreciation on forward foreign exchange
contracts (Note 1e)................................... -- -- -- --
Prepaid registration fees and other assets (Note 1d).... 6,725 3,793 2,326 7,035
------------- ------------- ------------- ---------------
Total assets.......................................... 82,723,082 219,454,064 112,493,438 596,393,638
------------- ------------- ------------- ---------------
LIABILITIES:
Call options written, at value (Notes 1a & 1e).......... -- -- -- --
Payable for capital shares redeemed..................... 241,357 745,157 410,133 --
Payable for securities purchased........................ -- -- -- 12,002,866
Payable to investment adviser (Note 2).................. 20,579 59,615 30,608 162,103
Accrued expenses and other liabilities.................. 40,126 38,565 174,484 236,200
------------- ------------- ------------- ---------------
Total liabilities..................................... 302,062 843,337 615,225 12,401,169
------------- ------------- ------------- ---------------
NET ASSETS.............................................. $ 82,421,020 $ 218,610,727 $ 111,878,213 $ 583,992,469
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
NET ASSETS CONSIST OF:
Common Stock, $0.10 par value+.......................... $ 966,561 $ 2,119,227 $ 1,043,183 $ 58,466,850
Paid-in capital in excess of par........................ 92,526,805 235,521,129 119,338,250 526,201,645
Undistributed investment income--net.................... 838,476 1,300,454 631,258 --
Accumulated realized capital losses on investments and
foreign currency transactions--net (Note 5)........... (4,156,752) (9,210,289) (4,901,973) --
Accumulated distributions in excess of realized capital
gains--net............................................ -- (324,731) -- --
Unrealized appreciation (depreciation) on investments
and foreign currency transactions--net................ (7,754,070) (10,795,063) (4,232,505) (676,026)
------------- ------------- ------------- ---------------
NET ASSETS.............................................. $ 82,421,020 $ 218,610,727 $ 111,878,213 $ 583,992,469
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
Capital shares outstanding.............................. 9,665,614 21,192,266 10,431,826 584,668,496
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
Net asset value, offering and redemption price per
share................................................. $ 8.53 $ 10.32 $ 10.72 $ 1.00
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
*Identified cost........................................ $ 88,172,575 $ 226,275,956 $ 114,515,496 $ 595,032,402
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
+Authorized shares...................................... 100,000,000 100,000,000 100,000,000 2,000,000,000
------------- ------------- ------------- ---------------
------------- ------------- ------------- ---------------
See Notes to Financial Statements.
</TABLE>
58
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Assets and Liabilities as of December 31, 1994 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MULTIPLE NATURAL
STRATEGY RESOURCES
PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value* (Note 1a)........................ $ 1,078,877,360 $ 20,426,178
Cash.................................................... -- 793,446
Receivable for options written.......................... 24,024 --
Interest receivable..................................... 6,018,344 --
Dividends receivable.................................... 1,153,877 15,826
Receivable for securities sold.......................... 13,543,802 405,832
Receivable for capital shares sold...................... 190,990 362,001
Unrealized appreciation on forward foreign exchange
contracts (Note 1e)................................... -- --
Prepaid registration fees and other assets (Note 1d).... 12,639 812
--------------- -------------
Total assets.......................................... 1,099,821,036 22,004,095
--------------- -------------
LIABILITIES:
Call options written, at value (premiums
received--$77,475) (Notes 1a & 1e).................... 73,125 --
Payable for capital shares redeemed..................... 2,768,358 390,717
Payable for securities purchased........................ 14,359,323 117,498
Payable to investment adviser (Note 2).................. 294,913 8,196
Accrued expenses and other liabilities.................. 242,410 33,040
--------------- -------------
Total liabilities..................................... 17,738,129 549,451
--------------- -------------
NET ASSETS.............................................. $ 1,082,082,907 $ 21,454,644
--------------- -------------
--------------- -------------
NET ASSETS CONSIST OF:
Common Stock, $0.10 par value+.......................... $ 6,669,561 $ 288,834
Paid-in capital in excess of par........................ 963,165,901 34,162,029
Undistributed investment income--net.................... 13,610,733 203,891
Undistributed (accumulated) realized capital gains
(losses) on investments and foreign currency
transactions--net (Note 5)............................ 71,262,222 (12,283,699)
Unrealized appreciation (depreciation) on investments
and foreign currency transactions--net................ 27,374,490 (916,411)
--------------- -------------
NET ASSETS.............................................. $ 1,082,082,907 $ 21,454,644
--------------- -------------
--------------- -------------
Capital shares outstanding.............................. 66,695,613 2,888,342
--------------- -------------
--------------- -------------
Net asset value, offering and redemption price per
share................................................. $ 16.22 $ 7.43
--------------- -------------
--------------- -------------
*Identified cost........................................ $ 1,051,526,596 $ 21,342,633
--------------- -------------
--------------- -------------
+Authorized shares...................................... 300,000,000 100,000,000
--------------- -------------
--------------- -------------
See Notes to Financial Statements.
</TABLE>
59
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Operations for the Year Ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (NOTES 1B & 1C):
Interest and discount earned*........................................... $ 2,844,488 $ 693,551 $ 5,022,623
Dividends*.............................................................. 975,905 2,915,563 2,778,571
Other income............................................................ -- 91,898 --
------------- ------------- -------------
Total income.......................................................... 3,820,393 3,701,012 7,801,194
------------- ------------- -------------
EXPENSES:
Investment advisory fees (Note 2)....................................... 270,177 715,382 718,962
Transfer agent fees (Note 2)............................................ 5,018 5,018 5,018
Custodian fees.......................................................... 16,558 59,341 163,213
Printing and shareholder reports........................................ -- -- --
Professional fees....................................................... 7,193 13,151 10,920
Registration fees (Note 1d)............................................. 3,489 12 58,877
Directors' fees and expenses............................................ 836 1,934 1,522
Accounting services (Note 2)............................................ 16,109 45,422 42,249
Pricing services........................................................ 1,442 4,123 7,155
Other................................................................... 4,116 5,737 3,078
------------- ------------- -------------
Total expenses before reimbursement..................................... 324,938 850,120 1,010,994
Reimbursement of expenses (Note 2)...................................... -- -- --
------------- ------------- -------------
Expenses after reimbursement............................................ 324,938 850,120 1,010,994
------------- ------------- -------------
Investment income--net.................................................. 3,495,455 2,850,892 6,790,200
------------- ------------- -------------
REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS--NET (NOTES 1C, 1E, 1F & 3):
Realized gain (loss) on investments--net................................ 2,638,524 14,631,120 3,044,155
Realized loss on foreign currency transactions--net..................... -- (3,530) (161,538)
Change in unrealized appreciation/depreciation on investments--net...... (9,897,682) (29,422,358) (14,859,909)
Change in unrealized appreciation/depreciation on foreign currency
transactions.......................................................... -- 1,038 267,487
------------- ------------- -------------
Total realized and unrealized loss on investments and foreign currency
transactions--net..................................................... (7,259,158) (14,793,730) (11,709,805)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......... $ (3,763,703) $(11,942,838) $ (4,919,605)
------------- ------------- -------------
------------- ------------- -------------
*Net of withholding tax................................................. $ -- $ 83,271 $ 278,994
------------- ------------- -------------
------------- ------------- -------------
See Notes to Financial Statements.
</TABLE>
60
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<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>
- ------------------------------------------------------------------------------------------------------------------
$ 1,014,730 $ 8,922,133 $ 17,561,728 $ 9,252,642 $ 24,435,993 $ 28,252,116 $ 78,196
879,269 93,957 -- -- -- 10,429,250 506,198
130,486 200,559 76,592 22,630 -- 9,871 45
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
2,024,485 9,216,649 17,638,320 9,275,272 24,435,993 38,691,237 584,439
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
348,222 270,230 803,620 406,820 1,854,579 3,828,317 70,950
5,018 5,018 5,018 5,018 5,000 5,016 5,018
33,762 19,423 29,204 23,630 2,319 278,115 22,494
-- -- -- -- 254 -- --
8,824 7,136 15,419 9,549 26,001 55,145 4,679
7 7 18 9 33 87 1,609
1,171 911 2,513 1,326 4,879 10,013 281
19,804 13,590 45,989 21,350 119,777 200,933 3,795
388 10,564 2,136 8,310 -- 3,968 1,708
3,063 5,417 5,480 4,318 11,117 18,531 16,413
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
420,259 332,296 909,397 480,330 2,023,959 4,400,125 126,947
-- -- -- -- -- -- (19,821)
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
420,259 332,296 909,397 480,330 2,023,959 4,400,125 107,126
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
1,604,226 8,884,353 16,728,923 8,794,942 22,412,034 34,291,112 477,313
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
6,082,287 (221,579) (9,210,294) (4,901,953) 1,825 72,588,075 (162,217)
(95) -- -- -- -- (4,842,528) (3,558)
(16,062,225) (9,621,977) (20,469,569) (10,846,549) (687,566) (163,387,087) (494,367)
-- -- -- -- -- 106,729 44
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
(9,980,033) (9,843,556) (29,679,863) (15,748,502) (685,741) (95,534,811) (660,098)
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
$ (8,375,807) $ (959,203) $(12,950,940) $ (6,953,560) $ 21,726,293 $ (61,243,699) $ (182,785)
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
$ 12,436 $ -- $ -- $ -- $ -- $ 430,611 $ 30,571
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
- ------------- ------------- ------------- ------------- --------------- --------------- -------------
</TABLE>
61
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO CAPITAL STOCK PORTFOLIO
----------------------------- -----------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------------- -----------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS: 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income -- net..................... $ 3,495,455 $ 2,739,184 $ 2,850,892 $ 2,993,422
Realized gain (loss) on investments and
foreign currency transactions--net......... 2,638,524 1,294,829 14,627,590 22,586,369
Change in unrealized
appreciation/depreciation on investments... (9,897,682) 5,063,435 (29,422,358) 7,733,392
Change in unrealized
appreciation/depreciation on foreign
currency transactions...................... -- -- 1,038 (493)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations.................. (3,763,703) 9,097,448 (11,942,838) 33,312,690
------------ ------------ ------------ ------------
DIVIDENDS & DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1G):
Investment income--net....................... (3,126,480) (3,304,634) (2,631,150) (5,214,104)
Realized gain on investments--net............ (1,294,833) (756,576) (22,655,649) (5,596,154)
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (4,421,313) (4,061,210) (25,286,799) (10,810,258)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ (3,940,079) 26,902,003 19,906,036 (948,421)
------------ ------------ ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... (12,125,095) 31,938,241 (17,323,601) 21,554,011
Beginning of year............................ 88,018,344 56,080,103 223,970,879 202,416,868
------------ ------------ ------------ ------------
End of year*................................. $ 75,893,249 $ 88,018,344 $206,647,278 $223,970,879
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*Undistributed investment income--net (Note
1h)........................................ $ 1,820,627 $ 1,451,652 $ 1,452,601 $ 1,232,859
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
See Notes to Financial Statements.
</TABLE>
62
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<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,
- ----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C>
1994 1993 1994 1993 1994 1993
- -------------------------------------------------------------------------------------------------
$ 6,790,200 $ 3,194,088 $ 1,604,226 $ 1,749,152 $ 8,884,353 $ 8,348,169
2,882,617 2,945,006 6,082,192 18,276,850 (221,579) 2,381,169
(14,859,909) 12,963,335 (16,062,225) (9,921,076) (9,621,977) 2,702,167
267,487 (6,183) -- -- -- --
- ------------ ------------ ------------ ------------ ------------ ------------
(4,919,605) 19,096,246 (8,375,807) 10,104,926 (959,203) 13,431,505
- ------------ ------------ ------------ ------------ ------------ ------------
(5,377,946) (2,745,665) (1,529,012) (2,393,959) (8,745,213) (8,491,599)
(2,701,303) (722,008) (18,174,826) (5,017,036) -- --
- ------------ ------------ ------------ ------------ ------------ ------------
(8,079,249) (3,467,673) (19,703,838) (7,410,995) (8,745,213) (8,491,599)
- ------------ ------------ ------------ ------------ ------------ ------------
53,820,053 114,444,001 6,944,971 (18,919,845) (2,613,948) 21,765,864
- ------------ ------------ ------------ ------------ ------------ ------------
40,821,199 130,072,574 (21,134,674) (16,225,914) (12,318,364) 26,705,770
182,672,044 52,599,470 122,836,288 139,062,202 94,739,384 68,033,614
- ------------ ------------ ------------ ------------ ------------ ------------
$223,493,243 $182,672,044 $101,701,614 $122,836,288 $ 82,421,020 $ 94,739,384
- ------------ ------------ ------------ ------------ ------------ ------------
- ------------ ------------ ------------ ------------ ------------ ------------
$ 3,473,834 $ 2,060,075 $ 928,765 $ 853,551 $ 838,476 $ 706,785
- ------------ ------------ ------------ ------------ ------------ ------------
- ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
63
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Statements of Changes in Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT LONG TERM CORPORATE
BOND PORTFOLIO BOND PORTFOLIO
----------------------------- -----------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------------- -----------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS: 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income--net....................... $ 16,728,923 $ 18,216,263 $ 8,794,942 $ 9,231,521
Realized gain (loss) on investments and
foreign currency transactions--net......... (9,210,294) 9,062,256 (4,901,953) 4,818,952
Change in unrealized
appreciation/depreciation on investments... (20,469,569) 2,597,175 (10,846,549) 2,696,998
Change in unrealized
appreciation/depreciation on foreign
currency transaction -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations.................. (12,950,940) 29,875,694 (6,953,560) 16,747,471
------------ ------------ ------------ ------------
DIVIDENDS & DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1G):
Investment income--net....................... (16,934,443) (18,258,239) (8,923,319) (9,257,762)
Realized gain on investments--net............ (9,062,228) (5,079,232) (4,821,218) (1,644,495)
In excess of realized gain on
investments--net........................... (324,731) -- -- --
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to
shareholders............................... (26,321,402) (23,337,471) (13,744,537) (10,902,257)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net increase (decrease) in net assets derived
from capital share transactions............ (26,611,957) 8,702,535 (6,744,452) 6,611,403
------------ ------------ ------------ ------------
NET ASSETS:
Total increase (decrease) in net assets...... (65,884,299) 15,240,758 (27,442,549) 12,456,617
Beginning of year............................ 284,495,026 269,254,268 139,320,762 126,864,145
------------ ------------ ------------ ------------
End of year*................................. $218,610,727 $284,495,026 $111,878,213 $139,320,762
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
*Undistributed investment income--net (Notes
1h)........................................ $ 1,300,454 $ 1,575,239 $ 631,258 $ 831,371
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
See Notes to Financial Statements.
</TABLE>
64
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY RESERVE MULTIPLE STRATEGY NATURAL RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------- --------------------------------- -----------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
- ----------------------------- --------------------------------- -----------------------------
<S> <C> <C> <C> <C> <C>
1994 1993 1994 1993 1994 1993
- -----------------------------------------------------------------------------------------------------
$ 22,412,034 $ 17,737,671 $ 34,291,112 $ 34,127,281 $ 477,313 $ 289,654
1,825 165,799 67,745,547 138,518,980 (165,775) 536,245
(687,566) (60,196) (163,387,087) 9,725,458 (494,368) (132,511)
-- -- 106,729 (65,630) 45 (11)
- ------------ ------------ -------------- -------------- ------------ ------------
21,726,293 17,843,274 (61,243,699) 182,306,089 (182,785) 693,377
- ------------ ------------ -------------- -------------- ------------ ------------
(22,412,034) (17,737,671) (36,928,856) (54,486,771) (444,638) (362,042)
(1,825) (165,799) (134,514,526) (49,964,250) -- --
- ------------ ------------ -------------- -------------- ------------ ------------
(22,413,859) (17,903,470) (171,443,382) (104,451,021) (444,638) (362,042)
- ------------ ------------ -------------- -------------- ------------ ------------
37,969,893 (100,419,340) 77,433,705 22,458,998 3,645,242 10,118,313
- ------------ ------------ -------------- -------------- ------------ ------------
37,282,327 (100,479,536) (155,253,376) 100,314,066 3,017,819 10,449,648
546,710,142 647,189,678 1,237,336,283 1,137,022,217 18,436,825 7,987,177
- ------------ ------------ -------------- -------------- ------------ ------------
$583,992,469 $546,710,142 $1,082,082,907 $1,237,336,283 $ 21,454,644 $ 18,436,825
- ------------ ------------ -------------- -------------- ------------ ------------
- ------------ ------------ -------------- -------------- ------------ ------------
$ -- $ -- $ 13,610,733 $ 16,248,477 $ 203,891 $ 171,216
- ------------ ------------ -------------- -------------- ------------ ------------
- ------------ ------------ -------------- -------------- ------------ ------------
</TABLE>
65
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
-------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
-------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE BEEN DERIVED
FROM INFORMATION PROVIDED IN THE FINANCIAL STATEMENTS.
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $ 14.62 $ 13.70 $ 13.29 $ 11.78 $ 12.25
<CAPTION>
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Investment income -- net.................................... .61 .50 .47 .60 .64
Realized and unrealized gain (loss) on investments and
foreign
currency transactions -- net.............................. (1.21) 1.35 .38 1.77 (.47)
<CAPTION>
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Total from investment operations............................ (.60) 1.85 .85 2.37 .17
<CAPTION>
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Less dividends and distributions:
Investment income -- net.................................... (.53) (.75) (.26) (.68) (.56)
Realized gain on investments -- net......................... (.22) (.18) (.18) (.18) (.08)
<CAPTION>
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Total dividends and distributions........................... (.75) (.93) (.44) (.86) (.64)
<CAPTION>
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, end of year................................ $ 13.27 $ 14.62 $ 13.70 $ 13.29 $ 11.78
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENT RETURN:*
Based on net asset value per share.......................... (4.28%) 14.31% 6.67% 20.95% 1.57%
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement.............................. .40% .43% .48% .50% .50%
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Expenses.................................................... .40% .43% .48% .50% .50%
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Investment income -- net.................................... 4.28% 3.72% 4.40% 4.91% 5.56%
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)...................... $75,893 $88,018 $56,080 $38,128 $29,065
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Portfolio turnover.......................................... 46.94% 25.38% 33.15% 58.77% 26.84%
<CAPTION>
------- ------- ------- ------- -------
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
* Total investment returns exclude insurance-related fees and expenses.
See Notes to Financial Statements.
</TABLE>
66
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL STOCK PORTFOLIO GLOBAL STRATEGY PORTFOLIO
- ------------------------------------------------------------ ----------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
- ------------------------------------------------------------ ----------------------------------------------------------
1994 1993 1992 1991 1990 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
$ 25.73 $ 23.22 $ 23.39 $ 19.65 $ 20.19 $ 15.42 $ 13.23 $ 13.16 $ 12.00 $ 11.68
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.29 .33 .39 .45 .54 .47 .36 .39 .41 .82
(1.50) 3.41 .16 4.97 (.44) (.71) 2.61 (.01) 1.60 (.14)
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(1.21) 3.74 .55 5.42 .10 (.24) 2.97 .38 2.01 .68
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(.28) (.59) (.20) (.54) (.52) (.41) (.60) (.17) (.85) (.36)
(2.60) (.64) (.52) (1.14) (.12) (.23) (.18) (.14) -- --
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(2.88) (1.23) (.72) (1.68) (.64) (.64) (.78) (.31) (.85) (.36)
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 21.64 $ 25.73 $ 23.22 $ 23.39 $ 19.65 $ 14.54 $ 15.42 $ 13.23 $ 13.16 $ 12.00
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(5.12%) 17.01% 2.47% 29.05% .61% (1.62%) 23.73% 3.00% 17.50% 6.01%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.39% .38% .41% .40% .40% .48% .45% .50% .50% .50%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.39% .38% .41% .40% .40% .48% .46% .54% .60% .61%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.32% 1.43% 1.89% 2.27% 2.66% 3.22% 3.27% 3.84% 3.86% 8.03%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$206,647 $223,971 $202,417 $177,604 $128,511 $223,493 $182,672 $52,599 $29,893 $ 22,087
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
71.19% 100.12% 74.89% 63.90% 61.76% 27.31% 30.53% 43.56% 93.85% 104.19%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
- -------- -------- -------- -------- -------- -------- -------- ------- ------- --------
</TABLE>
67
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH STOCK PORTFOLIO
------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE BEEN
DERIVED FROM INFORMATION PROVIDED IN THE FINANCIAL
STATEMENTS.
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.................... $ 24.65 $ 23.98 $ 23.31 $ 16.28 $ 18.95
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment income -- net.............................. .31 .32 .26 .25 .29
Realized and unrealized gain (loss) on investments and
foreign
currency transactions -- net........................ (1.81) 1.63 .53 7.06 (2.63)
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total from investment operations...................... (1.50) 1.95 .79 7.31 (2.34)
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Less dividends and distributions:
Investment income -- net.............................. (.30) (.41) (.12) (.28) (.33)
Realized gain on investments -- net................... (3.65) (.87) -- -- --
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total dividends and distributions..................... (3.95) (1.28) (.12) (.28) (.33)
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, end of year.......................... $ 19.20 $ 24.65 $ 23.98 $ 23.31 $ 16.28
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENT RETURN:*
Based on net asset value per share.................... (6.93%) 8.63% 3.40% 45.31% (12.41%)
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................. .40% .38% .42% .42% .43%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment income -- net.............................. 1.53% 1.35% 1.32% 1.56% 1.43%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)................ $101,702 $122,836 $139,062 $113,715 $ 52,086
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Portfolio turnover.................................... 102.96% 160.29% 87.25% 60.48% 94.54%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
* Total investment returns exclude insurance-related fees and expenses.
See Notes to Financial Statements.
</TABLE>
68
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD PORTFOLIO
- -----------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C>
- ------------------------------------------------------
$ 9.68 $ 9.10 $ 8.44 $ 6.98 $ 8.92
<CAPTION>
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
1.00 .94 1.03 1.02 1.24
(1.17) .62 .64 1.47 (1.94)
<CAPTION>
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
(.17) 1.56 1.67 2.49 (.70)
<CAPTION>
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
(.98) (.98) (1.01) (1.03) (1.24)
-- -- -- -- --
<CAPTION>
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
(.98) (.98) (1.01) (1.03) (1.24)
<CAPTION>
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
$ 8.53 $ 9.68 $ 9.10 $ 8.44 $ 6.98
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
(1.88%) 18.11% 20.63% 37.77% (8.83%)
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
.41% .43% .44% .46% .45%
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
10.88% 10.17% 11.45% 12.74% 14.93%
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
$82,421 $94,739 $68,034 $51,072 $34,673
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
63.43% 73.01% 83.95% 76.34% 31.01%
<CAPTION>
- ------- ------- ------- ------- -------
- ------- ------- ------- ------- -------
</TABLE>
69
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994+ 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE BEEN
DERIVED FROM INFORMATION PROVIDED IN THE FINANCIAL
STATEMENTS.
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.................... $ 12.02 $ 11.75 $ 11.79 $ 11.04 $ 11.02
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment income -- net.............................. .75 .83 .83 .86 .92
Realized and unrealized gain (loss) on investments and
foreign
currency transactions -- net........................ (1.30) .50 (.04) .76 .01
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total from investment operations...................... (.55) 1.33 .79 1.62 .93
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Less dividends and distributions:
Investment income -- net.............................. (.75) (.84) (.83) (.87) (.91)
Realized gain on investments -- net................... (.39) (.22) -- -- --
In excess of realized gain on investments--net........ (.01) -- -- -- --
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total dividends and distributions..................... (1.15) (1.06) (.83) (.87) (.91)
<CAPTION>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, end of year.......................... $ 10.32 $ 12.02 $ 11.75 $ 11.79 $ 11.04
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENT RETURN:*
Based on net asset value per share.................... (4.78%) 11.20% 7.03% 15.57% 8.98%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................. .37% .36% .40% .39% .40%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment Income -- net.............................. 6.89% 6.42% 7.03% 7.82% 8.50%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment income -- net, and realized gain (loss) on
investments -- net.................................... -- -- -- -- --
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)................ $218,611 $284,495 $269,254 $261,434 $231,672
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Portfolio turnover.................................... 140.55% 113.61% 80.54% 138.41% 129.98%
<CAPTION>
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
* Total investment returns exclude insurance-related fees and expenses.
+ Based on average shares outstanding during the period.
See Notes to Financial Statements.
</TABLE>
70
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LONG TERM CORPORATE BOND PORTFOLIO MONEY RESERVE PORTFOLIO
- ------------------------------------------------------------ ------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31,
- ------------------------------------------------------------ ------------------------------------------------------------
1994+ 1993 1992 1991 1990 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
$ 12.59 $ 12.07 $ 12.06 $ 11.21 $ 11.36 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.81 .83 .90 .96 .98 .04 .03 .04 .06 .08
(1.42) .68 .02 .85 (.15) -- -- -- -- --
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(.61) 1.51 .92 1.81 .83 .04 .03 .04 .06 .08
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(.82) (.83) (.91) (.96) (.98) (.04) (.03) (.04) (.06) (.08)
(.44) (.16) -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(1.26) (.99) (.91) (.96) (.98) (.04) (.03) (.04) (.06) (.08)
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.72 $ 12.59 $ 12.07 $ 12.06 $ 11.21 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(5.13%) 13.01% 8.05% 17.01% 7.83% 4.04% 3.08% 3.77% 6.11% 8.26%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
.39% .38% .43% .42% .43% .36% .36% .39% .38% .39%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7.16% 6.65% 7.51% 8.35% 8.81% -- -- -- -- --
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- 4.00% 3.03% 3.77% 5.97% 7.92%
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$111,878 $139,321 $126,864 $128,396 $119,237 $583,992 $546,710 $647,190 $798,020 $935,463
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
134.53% 110.53% 93.10% 124.58% 107.36% -- -- -- -- --
<CAPTION>
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
71
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Financial Highlights (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MULTIPLE STRATEGY PORTFOLIO
----------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSET VALUE: 1994+ 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
THE FOLLOWING PER SHARE DATA AND RATIOS HAVE
BEEN DERIVED FROM INFORMATION PROVIDED IN THE
FINANCIAL STATEMENTS.
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year............ $ 19.84 $ 18.70 $ 18.32 $ 15.45 $ 15.56
<CAPTION>
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income -- net...................... .50 .54 .61 .72 .99
Realized and unrealized gain (loss) on
investments
and foreign currency transactions -- net.... (1.39) 2.30 .17 3.13 (.27)
<CAPTION>
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Total from investment operations.............. (.89) 2.84 .78 3.85 .72
<CAPTION>
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Less dividends and distributions:
Investment income -- net...................... (.57) (.88) (.32) (.98) (.83)
Realized gain on investments -- net........... (2.16) (.82) (.08) -- --
<CAPTION>
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Total dividends and distributions............. (2.73) (1.70) (.40) (.98) (.83)
<CAPTION>
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, end of year.................. $ 16.22 $ 19.84 $ 18.70 $ 18.32 $ 15.45
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENT RETURN:*
Based on net asset value per share............ (5.05%) 16.66% 4.35% 25.97% 4.91%
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses, net of reimbursement................ .38% .36% .40% .39% .41%
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Expenses...................................... .38% .36% .40% .39% .41%
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment income -- net...................... 2.97% 2.91% 3.26% 4.17% 6.07%
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)........ $1,082,083 $1,237,336 $1,137,022 $1,152,395 $1,018,054
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Portfolio turnover............................ 68.12% 91.08% 67.71% 95.48% 106.39%
<CAPTION>
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
* Total investment returns exclude insurance-related fees and expenses.
+ Based on average shares outstanding during the period.
See Notes to Financial Statements.
</TABLE>
72
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATURAL RESOURCES PORTFOLIO
- ------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
- ------------------------------------------------------------
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C>
- ------------------------------------------------------
$ 7.53 $ 7.01 $ 7.04 $ 7.18 $ 7.84
<CAPTION>
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
.17 .13 .21 .27 .21
(.10) .66 (.12) (.14) (.69)
<CAPTION>
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
.07 .79 .09 .13 (.48)
<CAPTION>
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
(.17) (.27) (.12) (.27) (.18)
-- -- -- -- --
<CAPTION>
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
(.17) (.27) (.12) (.27) (.18)
<CAPTION>
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
$ 7.43 $ 7.53 $ 7.01 $ 7.04 $ 7.18
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
0.88% 11.65% 1.35% 1.67% (6.18%)
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
.50% .50% .50% .50% .50%
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
.59% .59% .82% .74% .63%
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
2.23% 2.00% 2.84% 3.12% 2.76%
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
$21,455 $18,437 $ 7,987 $ 8,030 $ 11,256
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
48.16% 65.26% 32.14% 30.20% 56.60%
<CAPTION>
- ------- ------- ------- ------- --------
- ------- ------- ------- ------- --------
</TABLE>
73
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES:
Merrill Lynch Series Fund, Inc. (the 'Fund') is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company,
with the exceptions of Global Strategy Portfolio and Natural Resources
Portfolio, which are classified as non-diversified. The Fund offers its shares
to Merrill Lynch Life Insurance Company, ML Life Insurance Company of New York
(indirect wholly-owned subsidiaries of Merrill Lynch & Co., Inc. ('ML & Co.')
and Monarch Life Insurance Company (an insurance company not affiliated with ML
& Co.) separate accounts to fund benefits under certain variable life insurance
contracts. The following is a summary of significant accounting policies
followed by the Fund.
(a) Valuation of investments--Money Reserve and Multiple Strategy Portfolios:
Investments maturing more than sixty days after the valuation date are valued at
the most recent bid price or yield equivalent as obtained from dealers that make
markets in such securities. When such securities are valued with sixty days or
less to maturity, the difference between the valuation existing on the
sixty-first day before maturity and maturity value is amortized on a
straight-line basis to maturity. Investments maturing within sixty days from
their date of acquisition are valued at amortized cost, which approximates
market value. For the purpose of valuation, the maturity of a variable rate
certificate of deposit is deemed to be the next coupon date on which the
interest rate is to be adjusted.
Balanced, Capital Stock, Global Strategy, Growth Stock, High Yield, Intermediate
Government Bond, Long Term Corporate Bond, Multiple Strategy and Natural
Resources Portfolios: Portfolio securities which are traded on stock exchanges
are valued at the last sale price as of the close of business on the day the
securities are being valued or, lacking any sales, at the closing bid price.
Securities other than money market securities traded in the over-the-counter
market are valued at the bid or yield equivalent as obtained from one or more
dealers that make markets in the securities. Portfolio securities which are
traded both in the over-the-counter market and on a stock exchange are valued
according to the broadest and most representative market, and it is expected
that for debt securities this ordinarily will be the over-the-counter market.
Options are valued at the last bid price in the case of options purchased and
the last asked price in the case of options written. Futures contracts are
valued at settlement price at the close of the applicable exchange. Securities
and assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of the Board of
Directors of the Fund.
(b) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax is required. Under the applicable foreign tax
law, a withholding tax may be imposed on interest, dividends and capital gains
at various rates.
(c) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Dividend income is recorded on the ex-dividend dates, except that if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as soon as the Funds are informed of the ex-dividend date. Interest
income (including amortization of premium and discount) is recognized on the
accrual basis. Realized gains and losses on security transactions are determined
on the identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares
are issued.
74
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
(e) Derivative financial instruments--The Fund may engage in various portfolio
strategies to seek to increase its return by hedging its portfolio against
adverse movements in the equity, debt and currency markets. Losses may arise due
to changes in the value of the contract or if the counter party does not perform
under the contract.
* Forward foreign exchange contracts--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.
* 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.
(f) Foreign currency transactions--Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into US dollars. Realized and unrealized gains or losses from
investments include the effects of foreign exchange rates on investments.
(g) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(h) Reclassification--Generally accepted accounting principles require that
certain differences for financial reporting and tax purposes, if permanent, be
reclassified. These reclassifications have no effect on net assets or net asset
values per share.
2. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH AFFILIATES:
The Fund has entered into an Investment Advisory Agreement with Merrill Lynch
Asset Management, L.P. ('MLAM'). The general partner of MLAM is Princeton
Services, Inc. ('PSI'), an indirect wholly-owned subsidiary of ML & Co., which
is the limited partner. The Fund has also entered into a Distribution Agreement
and Distribution Plan with Merrill Lynch Funds Distributor, Inc. ('MLFD' or
'Distributor'), a wholly-owned subsidiary of Merrill Lynch Group, Inc. MLAM is
responsible for the management of the Fund's portfolio 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.
75
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
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 limitation then in effect under any state securities
law or the regulations thereunder. Under the most restrictive state regulations
presently in effect, the Investment Adviser is required to reimburse each
Portfolio for advisory fees received by it from the Fund, to the extent that
such Portfolio's aggregate ordinary operating expenses (excluding interest,
taxes, brokerage fees and commissions, and extraordinary items) exceed in any
fiscal year 2.5% of the Portfolio's first $30 million of average daily net
assets, 2.0% of the next $70 million of average daily net assets and 1.5% of the
average daily net assets in excess thereof. In addition, the Investment Adviser,
Merrill Lynch Life Agency, Inc. and Monarch Life Insurance Co. ('Monarch')
entered into an agreement which provided that Monarch will reimburse the Fund's
operating expenses other than interest, taxes, brokerage fees and commissions
and extraordinary items, with respect to each Portfolio, to the extent that
these expenses exceed 0.50% of the Portfolio's average daily net assets. Monarch
will also reimburse MLAM for any amount MLAM is required to pay to the Fund by
reduction of its fee pursuant to the expense limitation provisions of the
Investment Advisory Agreement. For the year ended December 31, 1994, Monarch
reimbursed the Natural Resources Portfolio for additional expenses of $19,821.
Merrill Lynch, Pierce, Fenner & Smith Inc. ('MLPF&S'), a subsidiary of ML & Co.,
earned commissions on the execution of portfolio security transactions
aggregating $4,980 in the Balanced Portfolio, $21,260 in the Capital Stock
Portfolio, $43,354 in the Global Strategy Portfolio, $19,070 in the Growth Stock
Portfolio, $110,879 in the Multiple Strategy Portfolio and $2,364 in the Natural
Resources Portfolio.
Financial Data Services, Inc. ('FDS'), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
During the year ended December 31, 1994, Merrill Lynch Security Pricing Service,
an affiliate of MLPF&S, was paid by Intermediate Government Bond Portfolio,
$2,136; Growth Stock Portfolio, $388; Balanced Portfolio, $1,442; High Yield
Portfolio, $10,564; and Long Term Corporate Bond Portfolio, $8,310 for security
price quotations to compute the net asset value of the Fund.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or directors of
MLAM, FDS, MLPF&S, PSI, MLFD and/or ML & Co.
3. INVESTMENTS:
Purchases and sales of investments, excluding short-term securities for the year
ended December 31, 1994, were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
GLOBAL GOVERNMENT
BALANCED CAPITAL STOCK STRATEGY GROWTH STOCK HIGH YIELD BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Total Purchases........... $ 38,544,003 $ 143,083,689 $ 129,024,942 $ 91,343,686 $ 48,789,308 $ 321,381,836
------------ ------------- ------------- ------------- ------------ -------------
------------ ------------- ------------- ------------- ------------ -------------
Total Sales............... $ 35,742,100 $ 152,899,109 $ 54,132,061 $ 101,475,225 $ 60,376,648 $ 361,545,095
------------ ------------- ------------- ------------- ------------ -------------
------------ ------------- ------------- ------------- ------------ -------------
<CAPTION>
LONG TERM
CORPORATE MULTIPLE NATURAL
BOND STRATEGY RESOURCES
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- --------------------------
Total Purchases........... $ 153,416,915 $ 679,774,702 $ 14,839,555
------------- ------------- ------------
------------- ------------- ------------
Total Sales............... $ 169,447,127 $ 817,283,469 $ 9,393,575
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
76
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
In the Capital Stock Portfolio, transaction in call options written for the year
ended December 31, 1994 were as follows:
<TABLE>
<S> <C> <C>
NUMBER OF
SHARES
CALL OPTIONS WRITTEN COVERED PREMIUMS
- ------------------------------------------------------------------------------------------------------------------
Outstanding call options, beginning of year.............................................. -- --
Options written.......................................................................... 20,500 $ 23,550
Options terminated in closing purchase transactions...................................... (500) (906)
Options exercised........................................................................ (10,000) (10,548)
---------- ---------
Outstanding call options, end of year.................................................... 10,000 $ 12,096
---------- ---------
---------- ---------
</TABLE>
In the Multiple Strategy Portfolio, transactions in call options written for the
year ended December 31, 1994 were as follows:
<TABLE>
<S> <C> <C>
NUMBER OF
SHARES
CALL OPTIONS WRITTEN COVERED PREMIUMS
- ------------------------------------------------------------------------------------------------------------------
Outstanding call options, beginning of year.............................................. -- --
Options written.......................................................................... 102,400 $ 124,766
Options terminated in closing purchase transactions...................................... (9,500) (11,194)
Options exercised........................................................................ (19,500) (27,359)
Options expired.......................................................................... (8,400) (8,738)
---------- ---------
Outstanding call options, end of year.................................................... 65,000 $ 77,475
---------- ---------
---------- ---------
</TABLE>
As of December 31, 1994, unrealized appreciation/depreciation for Federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
CAPITAL GLOBAL
BALANCED STOCK STRATEGY GROWTH STOCK HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Appreciated securities....................... $ 4,080,283 $ 22,438,113 $ 12,672,059 $ 5,415,808 $ 1,146,984
Depreciated securities....................... (4,445,690) (11,092,682) (12,797,052) (13,669,368) (8,901,992)
------------ ------------ ------------ ------------ -----------
Net unrealized appreciation (depreciation)... $ (365,407) $ 11,345,431 $ (124,993) $ (8,253,560) $(7,755,008)
------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ -----------
Cost for Federal income tax purposes*........ $ 75,503,099 $197,109,806 $223,718,704 $108,017,940 $88,173,513
------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ -----------
</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..................... $ 329,983 $ 397,010 -- $ 88,166,252 $ 905,317
Depreciated securities (11,125,046) (4,629,515) $ (676,026) (60,811,139) (1,821,772)
------------ ------------ ------------ -------------- -----------
Net unrealized appreciation
(depreciation)........................... $(10,795,063) $ (4,232,505) $ (676,026) $ 27,355,113 $ (916,455)
------------ ------------ ------------ -------------- -----------
------------ ------------ ------------ -------------- -----------
Cost for Federal income tax purposes*...... $226,275,956 $114,515,496 $595,032,402 $1,051,449,121 $21,342,633
------------ ------------ ------------ -------------- -----------
------------ ------------ ------------ -------------- -----------
</TABLE>
*Net of premium received on options written.
77
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
Net realized and unrealized gains (losses) as of December 31, 1994 were as
follows:
<TABLE>
<CAPTION>
BALANCED CAPITAL STOCK GLOBAL STRATEGY
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------- --------------------------- --------------------------
REALIZED REALIZED REALIZED UNREALIZED
GAINS UNREALIZED GAINS UNREALIZED GAINS GAINS
(LOSSES) LOSSES (LOSSES) GAINS (LOSSES) (LOSSES)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Long-term securities..................... $2,638,692 $ (365,407) $14,630,728 $ 11,344,586 $3,044,510 $ (124,993)
Short-term securities.................... (168) -- -- -- (355) --
Options.................................. -- -- 392 845 -- --
Financial futures contracts.............. -- -- -- -- -- --
Foreign currency transactions............ -- -- (3,530) 570 (161,538) 253,884
---------- ------------ ----------- ------------ ---------- ------------
Total.................................... $2,638,524 $ (365,407) $14,627,590 $ 11,346,001 $2,882,617 $ 128,891
---------- ------------ ----------- ------------ ---------- ------------
---------- ------------ ----------- ------------ ---------- ------------
<CAPTION>
GROWTH STOCK HIGH YIELD
PORTFOLIO PORTFOLIO
------------------------- ------------------------
REALIZED
GAINS UNREALIZED REALIZED UNREALIZED
(LOSSES) LOSSES LOSSES LOSSES
<S> <C> <C> <C> <C>
- -----------------------------------------
Long-term securities..................... $6,085,494 $(8,253,560) $(218,406) $(7,754,070)
Short-term securities.................... (3,207) -- (3,173) --
Options.................................. -- -- -- --
Financial futures contracts.............. -- -- -- --
Foreign currency transactions............ (95) -- -- --
---------- ----------- --------- -----------
Total.................................... $6,082,192 $(8,253,560) $(221,579) $(7,754,070)
---------- ----------- --------- -----------
---------- ----------- --------- -----------
</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, 1994 SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------- ---------- ------------ ---------- -------------
Shares sold........................................................ 796,517 $ 10,927,406 3,132,708 $ 70,162,822
Shares issued to shareholders in reinvestment of dividends
and distributions................................................. 321,722 4,421,313 1,116,160 25,286,799
---------- ------------ ---------- -------------
Total issued....................................................... 1,118,239 15,348,719 4,248,868 95,449,621
Share redeemed..................................................... (1,418,737) (19,288,798) (3,403,477) (75,543,585)
---------- ------------ ---------- -------------
Net increase (decrease)............................................ (300,498) $ (3,940,079) 845,391 $ 19,906,036
---------- ------------ ---------- -------------
---------- ------------ ---------- -------------
<CAPTION>
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, 1994 SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------- ---------- ------------ ---------- ------------
Shares sold........................................................ 5,777,347 $ 87,535,692 3,016,630 $ 57,816,537
Shares issued to shareholders in reinvestment of dividends
and distributions................................................. 541,326 8,079,249 967,756 19,703,838
---------- ------------ ---------- ------------
Total issued....................................................... 6,318,673 95,614,941 3,984,386 77,520,375
Share redeemed..................................................... (2,796,991) (41,794,888) (3,671,567) (70,575,404)
---------- ------------ ---------- ------------
Net increase (decrease)............................................ 3,521,682 $ 53,820,053 312,819 $ 6,944,971
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
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>
78
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM MULTIPLE
GOVERNMENT CORPORATE BOND MONEY RESERVE STRATEGY
BOND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------- ---------------------------- ---------------------------- ----------------------------
REALIZED
REALIZED UNREALIZED REALIZED UNREALIZED REALIZED UNREALIZED GAINS UNREALIZED
LOSSES LOSSES LOSSES LOSSES GAINS LOSSES (LOSSES) GAINS
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
$(9,210,294) $(10,795,063) $(4,901,836) $(4,232,505) -- -- $ 73,170,288 $ 27,350,764
-- -- (117) -- $ 1,825 $ (676,026) (225) --
-- -- -- -- -- -- 15,912 4,350
-- -- -- -- -- -- (597,900) --
-- -- -- -- -- -- (4,842,528) 19,376
- ------------ ------------- ------------ ------------ ----------- ------------- ------------ ------------
$(9,210,294) $(10,795,063) $(4,901,953) $(4,232,505) $ 1,825 $ (676,026) $ 67,745,547 $ 27,374,490
- ------------ ------------- ------------ ------------ ----------- ------------- ------------ ------------
- ------------ ------------- ------------ ------------ ----------- ------------- ------------ ------------
<CAPTION>
NATURAL RESOURCES
PORTFOLIO
----------------------------
UNREALIZED
REALIZED GAINS
LOSSES (LOSSES)
<S> <C>
- -----------------------------
$ (162,146) $ (916,455)
(71) --
-- --
-- --
(3,558) 44
- ----------- -------------
$ (165,775) $ (916,411)
- ----------- -------------
- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT LONG TERM CORPORATE MONEY RESERVE
HIGH YIELD PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO PORTFOLIO
- ---------------------------- ---------------------------- --------------------------- -------------------------------
DOLLAR DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
6,957,804 $ 62,994,131 1,145,062 $ 12,193,233 617,781 $ 7,030,745 268,477,395 $ 268,477,395
965,110 8,745,213 2,387,827 26,321,402 1,196,731 13,744,537 22,352,889 22,352,889
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
7,922,914 71,739,344 3,532,889 38,514,635 1,814,512 20,775,282 290,830,284 290,830,284
(8,047,084) (74,353,292) (6,015,949) (65,126,592) (2,448,292) (27,519,734) (252,860,391) (252,860,391)
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
(124,170) $ (2,613,948) (2,483,060) $(26,611,957) (633,780) $ (6,744,452) 37,969,893 $ 37,969,893
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
<CAPTION>
DOLLAR DOLLAR DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
6,585,394 $ 62,046,849 2,029,675 $ 24,294,769 1,569,886 $ 19,535,581 159,076,748 $ 159,076,741
907,939 8,491,599 1,969,544 23,337,471 882,536 10,902,257 17,903,470 17,903,477
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
7,493,333 70,538,448 3,999,219 47,632,240 2,452,422 30,437,838 176,980,218 176,980,218
(5,176,485) (48,772,584) (3,241,514) (38,929,705) (1,897,253) (23,826,435) (277,399,558) (277,399,558)
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
2,316,848 $ 21,765,864 757,705 $ 8,702,535 555,169 $ 6,611,403 (100,419,340) $(100,419,340)
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
- ---------- ------------- ---------- ------------- ---------- ------------ ------------- -------------
<CAPTION>
MULTIPLE STRATEGY NATURAL RESOURCES
PORTFOLIO PORTFOLIO
- ----------------------------- ----------------------------
DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT
- ---------- -------------- ---------- -------------
<S> <C> <C> <C>
1,343,178 $ 22,804,677 3,685,749 $ 28,285,313
10,026,362 171,443,382 37,202 273,432
- ---------- -------------- ---------- -------------
11,369,540 194,248,059 3,722,951 28,558,745
(7,035,582) (116,814,354) (3,282,644) (24,913,503)
- ---------- -------------- ---------- -------------
4,333,958 $ 77,433,705 440,307 $ 3,645,242
- ---------- -------------- ---------- -------------
- ---------- -------------- ---------- -------------
DOLLAR DOLLAR
SHARES AMOUNT SHARES AMOUNT
- ---------- -------------- ---------- -------------
1,154,463 $ 21,097,663 4,270,081 $ 33,052,306
6,022,981 104,451,021 51,252 362,042
- ---------- -------------- ---------- -------------
7,177,444 125,548,684 4,321,333 33,414,348
(5,632,176) (103,089,686) (3,013,454) (23,296,035)
- ---------- -------------- ---------- -------------
1,545,268 $ 22,458,998 1,307,879 $ 10,118,313
- ---------- -------------- ---------- -------------
- ---------- -------------- ---------- -------------
</TABLE>
79
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
MERRILL LYNCH SERIES FUND, INC.
Notes to Financial Statements (Concluded)
- --------------------------------------------------------------------------------
5. CAPITAL LOSS CARRYFORWARD:
At December 31, 1994, the Fund had capital loss carryforwards of approximately
$3,749,000 in the High Yield Portfolio, of which $3,400,000 expires in 1998, and
$349,000 expires in 1999; $7,516,000 in the Intermediate Government Bond
Portfolio, all of which expires in 2002; $3,770,000 in the Long Term Corporate
Bond Portfolio, all of which expires in 2002; $11,945,000 in the Natural
Resources Portfolio, of which $8,243,000 expires in 1996, $2,063,000 expires in
1997, $1,187,000 expires in 1998, $155,000 expires in 1999, and $297,000 expires
in 2000. These amounts will be available to offset like amounts of any future
taxable capital gains.
6. COMMITMENTS:
At December 31, 1994, the Global Strategy Portfolio and Natural Resources
Portfolio had entered into forward foreign exchange contracts under which it
agreed to purchase various foreign currencies with values of approximately
$55,100 and $117,000, respectively.
7. LOANED SECURITIES:
At December 31, 1994, the Capital Stock Portfolio held US Treasury Notes having
an aggregate value
of approximately $3,004,000 as collateral for portfolio securities loaned having
a market value of approximately $3,600,000; the Intermediate Government Bond
Portfolio held US Treasury Notes having
an aggregate value of approximately $6,100,000 as collateral for portfolio
securities loaned having a market value of approximately $6,017,000; the Long
Term Corporate Bond Portfolio held US Treasury Notes having an aggregrate value
of approximately $7,669,000 as collateral for portfolio securities loaned having
a market value of approximately $7,359,000; the Multiple Strategy Portfolio held
US Treasury bonds having aggregate value of approximately $8,734,000 as
collateral for portfolio securities loaned having a market value of
approximately $7,377,000.
8. SUBSEQUENT EVENTS:
On January 3, 1995, the Board of Directors declared dividends and distributions
per share payable on January 3, 1995 to shareholders of record as of December
30, 1994 as follows:
<TABLE>
<CAPTION>
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
FUND
Balanced Portfolio........................................................... $0.318370 $0.461153
Capital Stock Portfolio...................................................... 0.514511 1.162026
Global Strategy Portfolio.................................................... 0.275852 0.154805
Growth Stock Portfolio....................................................... 1.197117 0.167797
Multiple Strategy Portfolio.................................................. 0.332350 0.967298
Natural Resources Portfolio.................................................. 0.069482 --
</TABLE>
80
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
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, 1994, 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 years in the five-year period then ended. 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, 1994 by correspondence with the custodian and brokers. 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, 1994, 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 LLP
Princeton, New Jersey
February 15, 1995
81
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
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
N. JOHN HEWITT-Senior Vice President
ALEX BOUZAKIS-Vice President
DONALD C. BURKE-Vice President
DENIS B. CUMMINGS-Vice President
LAWRENCE R. FULLER-Vice President
JAY C. HARBECK-Vice President
JOEL HEYMSFELD-Vice President
JOSEPH T. KENNEY-Vice President
VINCENT T. LATHBURY III-Vice President
PETER LEHMAN-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
90 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>
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
<PAGE>
51133 REV 2/95
<PAGE>
<PAGE>
