<PAGE>
Travelers Series Fund Inc.
AIM Capital
Appreciation Portfolio
Smith Barney Large
Capitalization Growth
Portfolio
--------------------
SEMI-ANNUAL REPORT
--------------------
April 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Travelers Series
Fund Inc.
[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the semi-annual report) for the Travelers Series Fund
Inc. -- AIM Capital Appreciation Portfolio and the Smith Barney Large
Capitalization Growth Portfolio ("Portfolio(s)") for the period ended April 30,
2000. In this report, we summarize the periods prevailing economic and market
conditions and outline our investment strategy.(1) A detailed summary of
performance and current holdings can be found in the appropriate sections that
follow. We hope you find this report useful and informative.
Portfolio Highlights
AIM Capital Appreciation Portfolio
The AIM Capital Appreciation Portfolio seeks capital appreciation. For the six
months ended April 30, 2000, the Portfolio returned 34.05%. In comparison, the
Lipper, Inc. peer group of mid-capitalization funds and the Standard & Poors
MidCap 400 Index ("S&P MidCap")(2) returned 28.30% and 21.26%,respectively, for
the same period. (Lipper, Inc. is a major fund-tracking organization.)
During the six months ended April 30, 2000, stock and bond markets were marked
by historic levels of volatility, leaving many investors with little or no clear
indication of the future direction of the financial markets. Despite the ongoing
strength and expansion of the U.S. and global economies, growing concerns
emerged regarding inflation and rising interest rates, which resulted in major
fluctuations in many stock prices. Despite this volatility, the shares of many
mid-cap stocks performed better than many large- and small-cap stocks.
--------------
1 The information provided herein represents the opinion of the manager and is
not intended to be a forecast of future events,a guarantee of future results
nor investment advice. Further,there is no assurance that certain securities
will remain in or out of the Portfolios.
2 The S&P MidCap is a market-value weighted index, consisting of 400 domestic
stocks chosen for market size, liquidating and industry group representation.
This index is unmanaged and is not subject to the same management and trading
expenses of a mutual fund.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 1
<PAGE>
Investment Portfolio Strategy
The manager uses a "bottom-up"(3) approach in selecting investments for the
Portfolio. During the period,the manager identified several companies,especially
those in the telecommunications industry that he believed possessed solid
earnings prospects. However,in line with the Portfolio's investment
objective,the manager generally looks for those companies with demonstrated
earnings.
Holdings in the Portfolio during the period included computer software companies
and communications equipment and software companies. In the view of the manager,
these industries may continue to benefit from the steady sales of personal
computers, the proliferation of new communications devices and the expansion of
the Internet, both in offices and in homes.
The manager's stock market outlook over the near-term depends largely on the
Federal Reserve Boards ("Fed") ability to stabilize the growth of the U.S.
economy. If the Fed is successful in slowing economic growth to a more
sustainable level and keeping inflation under control, the manager believes that
investors may continue to have a favorable view of stocks.
Moreover, the manager remains optimistic about the long-term prospects for
mid-cap stocks. Additionally, in the manager's opinion, anticipated earnings
growth for many mid-sized companies should continue in the year to come. Of
course, no guarantees can be made that this expectation will remain true.
Smith Barney Large Capitalization Growth Portfolio
The Smith Barney Large Capitalization Growth Portfolio seeks long-term growth of
capital by normally investing 65% of its assets in the equity securities of
companies with market capitalizations of $5 billion or more. For the six months
ended April 30, 2000, the Portfolio returned 16.49%. In comparison,the Standard
& Poor's 500 Index ("S&P 500")(4) returned 7.18% over the same period.
During the period covered by this report, the U.S. financial markets were marked
by historic levels of volatility and what the manager deemed to be excessive
speculative trading by many investors. In the managers view, share prices, most
notably in the technology area, became almost completely detached from the
underlying fundamentals such as price-to-earnings, price-to-sales and
price-to-book ratios.(5) By the end of the first quarter of 2000, however, most
investors began to reassess the high valuations assigned to many technology
stocks.
---------------
3 Bottom-up investing is a search for outstanding performance potential of
individual stocks before considering the impact of economic trends.
4 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks.
5 The price-to-earnings ratio is the price of a stock divided by its earnings
per share. The price-to-sales ratio is the current price of a stock divided by
the sales per share for the trailing 12 months. The price-to-book ratio is the
price of a stock compared to the difference between a company's assets and
liabilities.
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
The manager remains committed to his belief that individual company selection
should continue to be the primary focus of most investors. Excellent products,
experienced management and strong balance sheets are the underlying strengths
that the manager believes lead to franchise value, earnings growth, dividend
growth, share buy backs and strategic acquisitions.
During periods of speculative excesses, this investment approach can appear
dated, but the manager believes it is a tried-and-true process that has served
investors well for decades. Of course, there can be no guarantees that this
strategy will continue to be successful in the future.
Looking ahead, the manager is focusing on three broad industry sectors--
consumer, financial and technology. The manager believes that worldwide economic
growth should continue to benefit large, well-known global franchises. The
manager's emphasis on the financial services industry is, in his opinion, a
prudent strategy due to the strength of the global economy and the emergence of
increasingly affluent societies across the globe. Within the technology
sector, the manager remains focused on dominant market leadership companies he
thinks are poised for future growth. The manager anticipates that software,
semiconductors, telecommunications and networking companies should continue to
generate high levels of growth, and he will continue to look for those
recognized leaders to add to the Portfolio when deemed appropriate.
In closing, thank you for investing in the Travelers Series Fund Inc. We look
forward to continuing to help you to pursue your financial goals in the new
century.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
May 12, 2000
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 3
<PAGE>
--------------------------------------------------------------------------------
AIM Capital Appreciation Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $16.30 $21.85 $0.00 $0.00 34.05%++
--------------------------------------------------------------------------------
10/31/99 12.31 16.30 0.00 0.00 32.41
--------------------------------------------------------------------------------
10/31/98 12.68 12.31 0.02 0.00 (2.79)
--------------------------------------------------------------------------------
10/31/97 10.76 12.68 0.01 0.00 17.96
--------------------------------------------------------------------------------
10/31/96 10.00 10.76 0.01 0.00 7.71
--------------------------------------------------------------------------------
10/10/95* - 10/31/95 10.00 10.00 0.00 0.00 0.00++
================================================================================
Total $0.04 $0.00
================================================================================
It is the Funds policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
================================================================================
Six Months Ended 4/30/00++ 34.05%
--------------------------------------------------------------------------------
Year Ended 4/30/00 47.64
--------------------------------------------------------------------------------
10/10/95* through 4/30/00 18.79
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return+
--------------------------------------------------------------------------------
================================================================================
10/10/95* through 4/30/00 119.23%
================================================================================
+ Assumes the reinvestment of all dividends and capital gain distributions.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
AIM Capital Appreciation Portfolio vs. Lipper Midcap Index+
--------------------------------------------------------------------------------
October 1995--April 2000
[GRAPH]
AIM Capital Appreciation Lipper Midcap Index
10/10/95 10,000 10,000
Oct-95 10,000 10,190
Oct-96 10,771 11,962
Oct-97 12,706 14,450
Oct-98 12,351 14,029
Oct-99 16,355 18,224
4/30/00 21,923 23,953
+ Hypothetical illustration of $10,000 invested in shares of the AIM Capital
Appreciation Portfolio on October 10, 1995 (commencement of operations),
assuming reinvestment of dividends and capital gains at net asset value
through April 30, 2000. The Lipper Midcap Index (Index) is an index of widely
held common stocks listed on the New York and American Stock Exchanges and
over-the-counter markets. Figures for the Index include reinvestment of
dividends. The Index is unmanaged and is not subject to the same management
and trading expenses of a mutual fund. An investor cannot invest directly in
an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and redemption
value may be more or less than the original cost.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 5
<PAGE>
--------------------------------------------------------------------------------
Smith Barney Large Capitalization Growth Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
---------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $14.53 $16.89 $0.01 $0.02 16.49%++
--------------------------------------------------------------------------------
10/31/99 9.90 14.53 0.01 0.00 46.88
--------------------------------------------------------------------------------
5/1/98* - 10/31/98 10.00 9.90 0.00 0.00 (1.00)++
================================================================================
Total $0.02 $0.02
================================================================================
It is the Funds policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
================================================================================
Six Months Ended 4/30/00++ 16.49%
--------------------------------------------------------------------------------
Year Ended 4/30/00 22.05
--------------------------------------------------------------------------------
5/1/98* through 4/30/00 30.15
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return+
--------------------------------------------------------------------------------
================================================================================
5/1/98* through 4/30/00 69.39%
================================================================================
+ Assumes the reinvestment of all dividends and capital gain distributions.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Smith Barney Large Capitalization Growth Portfolio
vs. Standard & Poors 500 Index+
--------------------------------------------------------------------------------
May 1998--April 2000
[GRAPH]
Smith Barney Large Capitalization
Growth Portfolio Standard & Poor's 500 Index
5/1/98 10,000 10,000
Oct-98 9,900 9,959
Apr-99 13,878 12,181
Oct-99 14,541 12,514
4/30/00 16,939 13,413
+ Hypothetical illustration of $10,000 invested in shares of the Smith Barney
Large Capitalization Growth Portfolio on May 1, 1998 (commencement of
operations), assuming reinvestment of dividends and capital gains at net asset
value through April 30, 2000. The Standard & Poors 500 Index (Index) is an
index composed of widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and over-the-counter market. Figures for the
Index include reinvestment of dividends. The Index is unmanaged and is not
subject to the same management and trading expenses of a mutual fund. An
investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and redemption
value may be more or less than the original cost.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 7
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 95.7%
Advertising -- 2.5%
10,700 DoubleClick Inc.+ $ 811,862
75,500 Lamar Advertising Co., Class A Shares+ 3,326,719
50,500 Omnicom Group Inc. 4,598,656
32,200 Young & Rubicam Inc. 1,793,138
--------------------------------------------------------------------------------
10,530,375
--------------------------------------------------------------------------------
Banking -- 0.6%
37,400 Northern Trust Corp. 2,398,275
--------------------------------------------------------------------------------
Broadcasting -- 3.8%
48,000 AMFM Inc.+ 3,186,000
60,600 AT&T Corp. - Liberty Media Group+ 3,026,212
32,288 Cox Communications, Inc.+ 1,382,330
30,900 Hispanic Broadcasting Corp.+ 3,122,831
30,700 Univision Communications Inc., Class A Shares+ 3,353,975
79,000 USA Networks, Inc.+ 1,817,000
--------------------------------------------------------------------------------
15,888,348
--------------------------------------------------------------------------------
Communications -- Equipment and Software -- 4.1%
38,300 General Motors Corp., Class H Shares 3,688,769
109,600 JDS Uniphase Corp.+ 11,364,150
79,200 Metromedia Fiber Network, Inc., Class A Shares+ 2,445,300
--------------------------------------------------------------------------------
17,498,219
--------------------------------------------------------------------------------
Computer Hardware -- 2.6%
23,900 Adaptec, Inc.+ 645,300
14,500 Apple Computer, Inc.+ 1,798,906
20,100 Brocade Communications Systems, Inc.+ 2,492,400
71,400 Compaq Computer Corp. 2,088,450
25,000 Dell Computer Corp.+ 1,253,125
28,800 Sun Microsystems, Inc.+ 2,647,800
--------------------------------------------------------------------------------
10,925,981
--------------------------------------------------------------------------------
Computer Software -- 13.8%
29,000 Aspect Development, Inc.+ 2,004,625
44,000 BEA Systems, Inc.+ 2,123,000
30,000 Business Objects S.A., Sponsored ADR+ 2,936,250
30,300 CDW Computer Centers, Inc.+ 3,151,200
30,400 Check Point Software Technologies Ltd.+ 5,259,200
23,600 Citrix Systems, Inc.+ 1,441,075
36,400 Inktomi Corp.+ 5,603,325
66,500 Intuit Inc.+ 2,389,844
85,000 J.D. Edwards & Co.+ 1,551,250
47,400 Lycos, Inc.+ 2,204,100
See Notes to Financial Statements.
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
SHARES SECURITY VALUE
--------------------------------------------------------------------------------
Computer Software -- 13.8% (continued)
7,800 Mercury Interactive Corp.+ $ 702,000
25,000 Oracle Corp.+ 1,998,437
50,000 PeopleSoft, Inc.+ 696,875
19,300 Portal Software, Inc.+ 885,388
29,800 Siebel Systems, Inc.+ 3,661,675
45,500 Verio Inc.+ 1,709,094
34,500 VeriSign, Inc.+ 4,808,438
116,725 VERITAS Software Corp.+ 12,520,580
20,600 Yahoo! Inc.+ 2,683,150
--------------------------------------------------------------------------------
58,329,506
--------------------------------------------------------------------------------
Consumer/Commercial Services -- 2.3%
19,200 CGS Systems International Inc.+ 885,600
35,200 Exodus Communications, Inc.+ 3,113,000
82,600 Fiserv, Inc.+ 3,794,437
37,887 Paychex, Inc. 1,993,803
--------------------------------------------------------------------------------
9,786,840
--------------------------------------------------------------------------------
Electronic Instruments and Controls -- 4.7%
25,000 Agilent Technologies, Inc.+ 2,215,625
107,500 American Power Conversion Corp.+ 3,796,093
35,000 Gemstar International Group Ltd.+ 1,618,750
68,500 PE Corp. PE Biosystems Group 4,110,000
40,400 Sanmina Corp.+ 2,426,525
55,500 Symbol Technologies, Inc. 3,094,125
25,000 Teradyne, Inc.+ 2,750,000
--------------------------------------------------------------------------------
20,011,118
--------------------------------------------------------------------------------
Electronics -- Semiconductors and Components -- 14.7%
18,300 Advanced Micro Devices Inc.+ 1,605,825
21,100 Altera Corp.+ 2,157,475
108,400 Analog Devices, Inc.+ 8,326,475
20,200 Applied Materials, Inc.+ 2,056,613
45,000 ASM Lithography Holding N.V.+ 1,800,000
81,000 Celestica Inc.+ 4,419,562
40,100 Conexant Systems, Inc.+ 2,400,988
26,800 Cypress Semiconductor Corp.+ 1,391,925
20,000 Intel Corp. 2,536,250
35,000 KLA-Tencor Corp.+ 2,620,625
50,600 Linear Technology Corp. 2,890,525
50,000 LSI Logic Corp.+ 3,125,000
40,400 Maxim Integrated Products, Inc.+ 2,618,425
40,975 Microchip Technology Inc.+ 2,543,011
43,000 Millipore Corp. 3,082,562
30,300 Novellus Systems, Inc.+ 2,020,631
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
SHARES SECURITY VALUE
--------------------------------------------------------------------------------
Electronics - Semiconductors and Components -- 14.7% (continued)
38,300 PMC-Sierra, Inc.+ $ 7,348,813
12,200 SDL, Inc.+ 2,379,000
32,825 Vishay Intertechnology, Inc.+ 2,753,197
14,500 Vitesse Semiconductor Corp.+ 986,906
42,900 Xilinx, Inc.+ 3,142,425
--------------------------------------------------------------------------------
62,206,233
--------------------------------------------------------------------------------
Entertainment and Leisure Time -- 0.6%
76,800 Westwood One, Inc. 2,716,800
--------------------------------------------------------------------------------
Financial Services -- 3.4%
11,600 American Express Co. 1,740,725
97,500 Charles Schwab Corp. 4,338,750
49,000 Federated Investors, Inc. 1,384,250
46,000 The Goldman Sachs Group, Inc. 4,289,500
35,000 Morgan Stanley Dean Witter & Co. 2,686,250
--------------------------------------------------------------------------------
14,439,475
--------------------------------------------------------------------------------
Insurance -- 1.3%
47,000 AFLAC Inc. 2,294,187
36,850 Providian Financial Corp. 3,245,103
--------------------------------------------------------------------------------
5,539,290
--------------------------------------------------------------------------------
Manufacturing -- 5.1%
44,700 Corning Inc. 8,828,250
40,000 Danaher Corp. 2,285,000
25,400 EMC Corp. 3,529,013
115,000 Harley-Davidson, Inc. 4,578,438
40,500 Honeywell International Inc. 2,268,000
--------------------------------------------------------------------------------
21,488,701
--------------------------------------------------------------------------------
Medical Equipment and Information Systems -- 0.3%
39,400 Biomet, Inc. 1,406,088
--------------------------------------------------------------------------------
Medical Products and Supplies -- 2.3%
30,500 Chiron Inc.+ 1,380,125
111,937 Jones Pharma Inc. 3,225,185
96,400 Medtronic, Inc. 5,006,775
--------------------------------------------------------------------------------
9,612,085
--------------------------------------------------------------------------------
Medical Services -- 1.5%
46,600 Columbia/HCA Healthcare Corp. 1,325,188
145,400 Health Management Associates, Inc., Class A Shares+ 2,317,312
47,500 Lincare Holdings Inc.+ 1,448,750
40,000 Tenet Healthcare Corp.+ 1,020,000
--------------------------------------------------------------------------------
6,111,250
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Oil and Gas -- 5.1%
53,400 BJ Services Co.+ $ 3,751,350
55,800 Cooper Cameron Corp.+ 4,185,000
30,300 El Paso Energy Corp. 1,287,750
35,200 Enron Corp. 2,453,000
37,900 Grant Prideco, Inc. 729,575
121,000 R&B Falcon Corp.+ 2,510,750
65,800 Rowan Cos., Inc.+ 1,838,287
44,400 Smith International, Inc.+ 3,374,400
37,900 Weatherford International, Inc. 1,539,688
--------------------------------------------------------------------------------
21,669,800
--------------------------------------------------------------------------------
Oil and Gas Drilling -- 2.1%
51,400 Ensco International Inc. 1,705,837
89,900 Nabors Industries, Inc.+ 3,545,431
80,000 Transocean Sedco Forex Inc. 3,760,000
--------------------------------------------------------------------------------
9,011,268
--------------------------------------------------------------------------------
Pharmaceuticals -- 1.8%
30,200 Amgen Inc.+ 1,691,200
47,400 Biogen, Inc. 2,787,712
23,000 Forest Laboratories, Inc.+ 1,933,438
24,200 Medicis Pharmaceutical Corp., Class A Shares+ 1,058,750
--------------------------------------------------------------------------------
7,471,100
--------------------------------------------------------------------------------
Printing and Publishing -- 0.6%
50,500 Electronics for Imaging, Inc.+ 2,638,625
--------------------------------------------------------------------------------
Restaurants -- 0.8%
60,300 Brinker International, Inc.+ 1,922,063
40,400 Outback Steakhouse, Inc.+ 1,323,100
--------------------------------------------------------------------------------
3,245,163
--------------------------------------------------------------------------------
Retail -- 7.7%
102,000 Bed Bath & Beyond Inc.+ 3,742,125
18,000 Best Buy Co., Inc.+ 1,453,500
36,575 Dollar Tree Stores, Inc.+ 2,116,778
57,600 Family Dollar Stores, Inc. 1,098,000
50,600 The Gap, Inc. 1,859,550
35,000 The Home Depot, Inc. 1,962,187
29,600 Intimate Brands, Inc. 1,139,600
72,000 Jones Apparel Group, Inc.+ 2,137,500
82,200 Kohls Corp.+ 3,945,600
40,500 The Limited, Inc. 1,830,094
70,000 Lowes Cos., Inc. 3,465,000
50,175 The Mens Wearhouse, Inc.+ 1,075,627
70,200 Ross Stores, Inc. 1,456,650
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
SHARES SECURITY VALUE
--------------------------------------------------------------------------------
Retail -- 7.7% (continued)
83,637 Staples, Inc.+ $ 1,594,330
30,300 The Talbots, Inc. 1,532,044
14,700 Tiffany & Co. 1,068,506
29,300 Zale Corp.+ 1,208,625
--------------------------------------------------------------------------------
32,685,716
--------------------------------------------------------------------------------
Telecommunications -- 4.8%
60,200 Broadwing Inc. 1,704,413
32,000 CenturyTel, Inc. 784,000
43,400 Crown Castle International Corp.+ 1,665,475
14,900 Extreme Networks, Inc.+ 858,613
10,000 Juniper Networks, Inc.+ 2,126,875
20,200 Level 3 Communications, Inc.+ 1,797,800
19,900 Network Appliance, Inc.+ 1,471,356
29,800 NTL Inc.+ 2,279,700
70,500 Qwest Communications International, Inc.+ 3,057,937
31,400 RCN Corp.+ 898,825
11,700 VoiceStream Wireless Corp.+ 1,158,300
47,000 Western Wireless Corp., Class A Shares 2,335,313
--------------------------------------------------------------------------------
20,138,607
--------------------------------------------------------------------------------
Telecommunications Equipment -- 8.1%
126,600 ADC Telecommunications, Inc.+ 7,690,950
11,800 CIENA Corp.+ 1,458,775
39,800 Cisco Systems, Inc.+ 2,759,259
60,600 Comverse Technology, Inc.+ 5,404,763
104,800 Nokia Oyj, Sponsored ADR 5,960,500
34,800 Nortel Networks Corp. 3,941,100
7,100 QUALCOMM Inc.+ 769,906
93,800 Scientific-Atlanta, Inc. 6,102,862
--------------------------------------------------------------------------------
34,088,115
--------------------------------------------------------------------------------
Transportation - Miscellaneous -- 1.1%
62,500 Kansas City Southern Industries, Inc.+ 4,492,188
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $256,625,701) 404,329,166
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
--------------------------------------------------------------------------------
AIM CAPITAL APPRECIATION PORTFOLIO
FACE
AMOUNT RATING SECURITY VALUE
================================================================================
CONVERTIBLE BOND -- 0.3%
$ 1,800,000 NR* Critical Path, Inc., 5.750% due 4/1/05++
(Cost $1,410,620) $ 1,374,750
================================================================================
SHORT-TERM INVESTMENT -- 4.0%
16,926,000 Federal Home Loan Mortgage Corp., 5.880% due 5/1/00
(Cost $16,920,471) 16,920,471
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost $274,956,792**) $422,624,387
================================================================================
+ Non-income producing security.
* Indicates that the bond is not rated by Standard & Poors Ratings Service or
Moodys Investors Service, Inc.
++ Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
** Aggregate cost for Federal income tax purposes is substantially the same.
--------------------------------------------------------------------------------
Schedule of Options Written (unaudited) April 30,2000
--------------------------------------------------------------------------------
Number of Strike
Contracts Expiration Price Value
--------------------------------------------------------------------------------
70 Enron Corp. 5/20/00 $ 80 $ 3,500
30 The Goldman Sachs Group, Inc. 5/20/00 130 938
18 Harley-Davidson, Inc. 5/20/00 50 562
197 Medtronic, Inc. 5/20/00 55 23,394
--------------------------------------------------------------------------------
Total Covered Call Options Written
(Premiums received - $92,673) $28,394
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY LARGE CAPITALIZATION GROWTH PORTFOLIO
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 97.8%
Capital Goods -- 2.4%
42,240 General Electric Co. $ 6,642,240
--------------------------------------------------------------------------------
Computer Software -- 6.3%
208,120 America Online, Inc.+ 12,448,178
71,500 Microsoft Corp.+ 4,987,125
--------------------------------------------------------------------------------
17,435,303
--------------------------------------------------------------------------------
Consumer Cyclicals -- 9.9%
78,100 Amazon.com, Inc.+ 4,310,144
130,050 The Home Depot, Inc. 7,290,928
117,080 McDonalds Corp. 4,463,675
266,715 The Walt Disney Co. 11,552,093
--------------------------------------------------------------------------------
27,616,840
--------------------------------------------------------------------------------
Consumer Staples -- 12.1%
188,590 The Coca-Cola Co. 8,875,517
269,895 The Gillette Co. 9,986,115
136,590 PepsiCo, Inc. 5,011,146
66,680 The Procter & Gamble Co. 3,975,795
81,270 Wm. Wrigley Jr. Co. 5,881,916
--------------------------------------------------------------------------------
33,730,489
--------------------------------------------------------------------------------
Financial Services -- 22.6%
55,271 American International Group, Inc. 6,062,538
162,600 Bank One Corp. 4,959,300
149 Berkshire Hathaway Inc., Class A Shares+ 8,835,700
9 Berkshire Hathaway Inc., Class B Shares+ 17,245
96,265 Fannie Mae 5,805,983
195,125 Household International, Inc. 8,146,469
113,820 Merrill Lynch & Co., Inc. 11,602,526
117,070 Morgan Stanley Dean Witter & Co. 8,985,122
208,175 Wells Fargo & Co. 8,548,186
--------------------------------------------------------------------------------
62,963,069
--------------------------------------------------------------------------------
Health Care -- 14.3%
158,680 Amgen Inc.+ 8,886,080
97,550 Eli Lilly & Co. 7,541,834
58,585 Johnson & Johnson 4,833,263
45,540 Merck & Co., Inc. 3,165,030
104,090 Pfizer Inc. 4,384,791
95,620 Warner-Lambert Co. 10,882,751
--------------------------------------------------------------------------------
39,693,749
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY LARGE CAPITALIZATION GROWTH PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Multi-Industry -- 1.2%
71,500 Tyco International Ltd. $ 3,284,531
--------------------------------------------------------------------------------
Technology -- 29.0%
85,808 Cisco Systems, Inc.+ 5,948,908
71,500 Dell Computer Corp.+ 3,583,937
154,800 Intel Corp. 19,630,575
130,040 Lucent Technologies Inc. 8,086,863
65,060 Motorola, Inc. 7,746,206
240,630 Novell, Inc.+ 4,722,364
130,080 Texas Instruments Inc. 21,186,780
136,580 Xilinx, Inc.+ 10,004,485
--------------------------------------------------------------------------------
80,910,118
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $215,629,658) 272,276,339
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 2.2%
================================================================================
$ 6,261,000 Chase Securities Inc., 5.550% due 5/1/00; Proceeds
at maturity -- $6,263,893; (Fully collateralized by
U.S. Treasury Notes, 4.750% due 11/15/18; Market
value -- $6,386,700) (Cost -- $6,261,000) 6,261,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $221,890,658*) $278,537,339
================================================================================
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Smith Barney
AIM Capital Large
Appreciation Capitalization
Portfolio Growth Portfolio
=========================================================================================
<S> <C> <C>
ASSETS:
Investments, at value (Cost -- $274,956,792 and
$221,890,658, respectively) $ 422,624,387 $ 278,537,339
Cash 3,964 142
Dividends and interest receivable 20,390 151,669
Receivable for securities sold 3,050,433 --
-----------------------------------------------------------------------------------------
Total Assets 425,699,174 278,689,150
-----------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 3,183,295 4,478,136
Management fees payable 264,489 372,778
Options written (Premiums received -- $92,673) (Note 6) 28,394 --
Accrued expenses 35,794 63,877
-----------------------------------------------------------------------------------------
Total Liabilities 3,511,972 4,914,791
-----------------------------------------------------------------------------------------
Total Net Assets $ 422,187,202 $ 273,774,359
=========================================================================================
NET ASSETS:
Par value of capital shares $ 193 $ 162
Capital paid in excess of par value 222,055,145 217,799,793
Undistributed net investment income -- 33,780
Accumulated net investment loss (771,728) --
Accumulated net realized gain (loss) from
security transactions and options 53,171,718 (706,057)
Net unrealized appreciation of
investments and options 147,731,874 56,646,681
-----------------------------------------------------------------------------------------
Total Net Assets $ 422,187,202 $ 273,774,359
=========================================================================================
Shares Outstanding 19,319,121 16,211,054
-----------------------------------------------------------------------------------------
Net Asset Value $ 21.85 $ 16.89
-----------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
Smith Barney
AIM Capital Large
Appreciation Capitalization
Portfolio Growth Portfolio
======================================================================================================
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 566,596 $ 111,393
Dividends 280,250 881,524
Less: Foreign withholding tax (6,847) --
-----------------------------------------------------------------------------------------------------
Total Investment Income 839,999 992,917
-----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,556,216 833,486
Custody 12,185 5,835
Audit and legal 12,073 10,668
Shareholder communications 9,473 7,348
Shareholder and system servicing fees 7,601 8,087
Directors' fees 4,370 3,018
Registration fees 3,831 --
Other 5,978 --
-----------------------------------------------------------------------------------------------------
Total Expenses 1,611,727 868,442
-----------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (771,728) 124,475
-----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND OPTIONS (NOTES 3 AND 6):
Realized Gain (Loss) From:
Security transactions (excluding short-term securities) 42,482,677 (428,912)
Options written 630,902 --
-----------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 43,113,579 (428,912)
-----------------------------------------------------------------------------------------------------
Changes in Net Unrealized Appreciation of Investments and Options:
Beginning of period 87,714,157 24,602,858
End of period 147,731,874 56,646,681
-----------------------------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 60,017,717 32,043,823
-----------------------------------------------------------------------------------------------------
Net Gain on Investments and Options 103,131,296 31,614,911
-----------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 102,359,568 $ 31,739,386
=====================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited) and the Year Ended
October 31, 1999
AIM Capital Appreciation Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment loss $ (771,728) $ (468,961)
Net realized gain 43,113,579 19,826,015
Increase in net unrealized appreciation 60,017,717 53,711,210
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 102,359,568 73,068,264
--------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
Net realized gains -- --
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- --
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 111,133,431 127,822,307
Net asset value of shares issued
for reinvestment of dividends -- --
Cost of shares reacquired (90,825,403) (127,233,116)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 20,308,028 589,191
--------------------------------------------------------------------------------
Increase in Net Assets 122,667,596 73,657,455
NET ASSETS:
Beginning of period 299,519,606 225,862,151
--------------------------------------------------------------------------------
End of period* $ 422,187,202 $ 299,519,606
================================================================================
* Includes accumulated net investment loss of: $ (771,728) --
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited) and the Year Ended
October 31, 1999
<TABLE>
<CAPTION>
Smith Barney Large Capitalization Growth Portfolio 2000 1999
=====================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 124,475 $ 67,528
Net realized gain (loss) (428,912) 60,716
Increase in net unrealized appreciation 32,043,823 23,699,765
-------------------------------------------------------------------------------------
Increase in Net Assets From Operations 31,739,386 23,828,009
-------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (130,419) (45,401)
Net realized gains (318,223) --
-------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (448,642) (45,401)
-------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 74,077,106 126,123,445
Net asset value of shares issued
for reinvestment of dividends 448,642 45,401
Cost of shares reacquired (322,444) (2,458,066)
-------------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 74,203,304 123,710,780
-------------------------------------------------------------------------------------
Increase in Net Assets 105,494,048 147,493,388
NET ASSETS:
Beginning of period 168,280,311 20,786,923
-------------------------------------------------------------------------------------
End of period* $ 273,774,359 $ 168,280,311
=====================================================================================
* Includes undistributed net investment income of: $ 33,780 $ 39,724
=====================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The AIM Capital Appreciation Portfolio and Smith Barney Large Capitalization
Growth Portfolio ("Portfolio(s)") are separate investment portfolios of the
Travelers Series Fund Inc. ("Fund"). The Fund, a Maryland corporation, is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company and consists of these portfolios and thirteen
other separate investment portfolios: Smith Barney Large Cap Value, Alliance
Growth, Van Kampen Enterprise, Smith Barney International Equity, Smith Barney
Pacific Basin,Travelers Managed Income, Putnam Diversified Income, INVESCO
Global Strategic Income, Smith Barney High Income, MFS Total Return, Smith
Barney Money Market, Smith Barney Aggressive Growth and Smith Barney Mid Cap
Portfolios. Shares of the Fund are offered only to insurance company separate
accounts that fund certain variable annuity and variable life insurance
contracts. The financial statements and financial highlights for the other
portfolios are presented in separate shareholder reports.
The significant accounting policies followed by the Portfolios are: (a) security
transactions are accounted for on trade date; (b) securities traded on national
securities markets are valued at the closing prices on such markets; securities
for which no sales price was reported and U.S. government agencies and
obligations are valued at the mean between the bid and asked prices; (c)
securities maturing within 60 days are valued at cost plus accreted discount or
minus amortized premium, which approximates value; (d) securities for which
market quotations are not available will be valued in good faith at fair value
by or under the direction of the Board of Directors; (e) interest income is
recorded on an accrual basis; (f) dividend income is recorded on the ex-dividend
date; foreign dividends are recorded on the ex-dividend date or as soon as
practical after the Portfolios determine the existence of a dividend declaration
after exercising reasonable due diligence; (g) gains or losses on the sale of
securities are calculated by using the specific identification method; (h) the
accounting records of the Portfolios are maintained in U.S. dollars. All assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars based on the rate of exchange of such currencies against U.S. dollars on
the date of valuation. Purchases and sales of securities, and income and
expenses are translated at the rate of exchange quoted on the respective date
that such transactions are recorded. Differences between income or expense
amounts recorded and collected or paid are adjusted when reported by the
custodian; (i) the character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. At October 31,1999, reclassifications
were made to AIM Capital Appreciation Portfolios capital accounts to reflect
permanent book/tax differences and income and gains available for distributions
under income
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
tax regulations. In addition, for the AIM Capital Appreciation Portfolio, a
portion of accumulated net investment loss amounting to $468,961 was
reclassified to paid-in capital. Net investment income, net realized gains and
net assets were not affected by this change; (j) the Portfolios intend to comply
with the applicable provisions of the Internal Revenue Code of 1986, as
amended, pertaining to regulated investment companies and to make distributions
of taxable income sufficient to relieve it from substantially all Federal income
and excise taxes; and (k) estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as investment manager of the Smith Barney Large
Capitalization Growth Portfolio ("SBLCG"). SBLCG pays SSBC a management fee
calculated at an annual rate of 0.75% on the average daily net assets of the
Portfolio.
Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SSBC, acts as the
investment manager of the AIM Capital Appreciation Portfolio ("AIMCAP"). AIMCAP
pays TIA a management fee calculated at an annual rate of 0.80% on the average
daily net assets of the Portfolio. These fees are calculated daily and paid
monthly.
TIA has also entered into a sub-advisory agreement with AIM Capital Management,
Inc. ("AIM"). Pursuant to the sub-advisory agreement, AIM is responsible for the
day-to-day portfolio operations and investment decisions and is compensated for
such services at the annual rate of 0.375% of the Portfolio's average daily net
assets. TIA pays this fee to AIM on a monthly basis.
TIA has also entered into a Sub-Administrative Services Agreement with SSBC. TIA
pays SSBC, as sub-administrator, a fee calculated at an annual rate of 0.10% of
each Portfolios average daily net assets.
Effective October 1999, Citi Fiduciary Trust Company ("CFTC"), another
subsidiary of Citigroup, became the Portfolios' transfer agent and PFPC Global
Fund Services ("PFPC") became the sub-transfer agent. CFTC receives account fees
and asset-based fees that vary according to the size and type of account. PFPC
is responsible for shareholder recordkeeping and financial processing for all
shareholder accounts and is paid by CFTC. During the six months ended April 30,
2000, the Portfolios paid transfer agent fees of $5,000 to CFTC.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions. During the six months
ended April 30, 2000, SSB received brokerage commissions in the amounts of
$3,139 and $1,375 for AIMCAP and SBLCG, respectively.
All officers and one Director of the Fund are employees of SSB.
3. Investments
For the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
Smith Barney
AIM Capital Large Capitalization
Appreciation Growth
================================================================================
Purchases $191,756,385 $82,988,046
--------------------------------------------------------------------------------
Sales 171,657,357 10,058,475
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
Smith Barney
AIM Capital Large Capitalization
Appreciation Growth
================================================================================
Gross unrealized appreciation $157,302,749 $ 67,085,400
Gross unrealized depreciation (9,635,154) (10,438,719)
--------------------------------------------------------------------------------
Net unrealized appreciation $147,667,595 $ 56,646,681
================================================================================
4. Lending of Portfolio Securities
Each Portfolio has an agreement with its custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities or high quality money market instruments that
are maintained at all times in an amount at least equal to the current market
value of the loaned securities, plus a margin which may vary depending on the
type of securities loaned. The custodian establishes and maintains the
collateral in a segregated account.
At April 30, 2000, the Portfolios had no securities on loan.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
5. Futures Contracts
Initial margin deposits made upon entering into futures contracts are recognized
as assets. Securities equal to the initial margin amount are segregated by the
custodian in the name of the broker. Additional securities are also segregated
up to the current market value of the futures contract. During the period the
futures contract is open,changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's trading. Variation
margin payments are received or made and recognized as assets due from or
liabilities due to broker, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Portfolios record a realized gain or
loss equal to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolios basis in the contract.
The Portfolios enter into such contracts to hedge a portion of their portfolio.
The Portfolios bear the market risk that arise from changes in the value of the
financial instruments and securities indices (futures contracts).
At April 30, 2000, the Portfolios had no open futures contracts.
6. Options Contracts
When the Portfolios write a covered call option, an amount equal to the premium
received by the Portfolios are recorded as a liability, the value of which is
marked-to-market daily. When a written option expires,the Portfolios realize a
gain equal to the amount of the premium received. When the Portfolios enter into
a closing purchase transaction, the Portfolios realize a gain or loss depending
upon whether the cost of the closing transaction is greater or less than the
premium originally received, without regard to any unrealized gain or loss on
the underlying security, and the liability related to such option is eliminated.
When a written call option is exercised,the cost of the security sold will be
decreased by the premium originally received. When written index options are
exercised,settlement is made in cash.
The risk in writing a covered call option is that the Portfolios give up the
opportunity to participate in any increase in the price of the underlying
security beyond the exercise price.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
The following covered call option transactions occurred during the six months
ended April 30, 2000, for AIM Capital Appreciation Portfolio:
<TABLE>
<CAPTION>
Number of
Contracts Premiums
========================================================================================
<S> <C> <C>
Options written, outstanding at October 31, 1999 -- --
Options written during the six months ended April 30, 2000 1,671 $ 1,104,757
Options cancelled in closing purchase transactions (1,356) (1,012,084)
Options expired -- --
----------------------------------------------------------------------------------------
Options written, outstanding at April 30, 2000 315 $ 92,673
========================================================================================
</TABLE>
7. Capital Shares
At April 30, 2000, the Fund had six billion shares of capital stock authorized
with a par value of $0.00001 per share. Each share of a Portfolio represents an
equal proportionate interest in that Portfolio with each other share of the same
Portfolio and has an equal entitlement to any dividends and distributions made
by the Portfolio.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
================================================================================
AIM Capital Appreciation
Shares sold 5,253,165 8,702,220
Shares issued on reinvestment -- --
Shares reacquired (4,310,272) (8,672,298)
--------------------------------------------------------------------------------
Net Increase 942,893 29,922
================================================================================
Smith Barney Large Capitalization Growth
Shares sold 4,624,637 9,661,334
Shares issued on reinvestment 28,040 3,615
Shares reacquired (19,587) (187,705)
--------------------------------------------------------------------------------
Net Increase 4,633,090 9,477,244
================================================================================
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
AIM Capital Appreciation Portfolio 2000(1) 1999 1998 1997 1996(2) 1995(2)(3)
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.30 $12.31 $12.68 $10.76 $10.00 $10.00
------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)(4) (0.04) (0.03) (0.01) 0.02 0.02 0.02
Net realized and unrealized
gain (loss) 5.59 4.02 (0.34) 1.91 0.75 (0.02)
------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 5.55 3.99 (0.35) 1.93 0.77 --
------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- (0.02) (0.01) (0.01) --
------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.02) (0.01) (0.01) --
------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $21.85 $16.30 $12.31 $12.68 $10.76 $10.00
------------------------------------------------------------------------------------------------------------------------
Total Return 34.05%++ 32.41% (2.79)% 17.96% 7.71% 0.00%++
------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $422 $300 $226 $203 $113 $8
------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 0.82%+ 0.84% 0.85% 0.85% 0.96% 1.00%+
Net investment income (loss) (0.39)+ (0.18) (0.06) 0.20 0.22 4.07+
------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 47% 76% 75% 56% 44% 6%
========================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from October 10, 1995 (commencement of operations) to
October 31, 1995.
(4) The Manager waived all of its fees and reimbursed expenses of $13,456 for
the period ended October 31, 1995. If such fees were not waived, the per
share decrease to net investment income and the actual annualized expense
ratio would have been $0.03 and 5.95%, respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney Large Capitalization Growth Portfolio 2000(1) 1999 1998(2)
===============================================================================================
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $14.53 $9.90 $10.00
-----------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.01 0.00* 0.01
Net realized and unrealized gain (loss) 2.38 4.64 (0.11)#
-----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.39 4.64 (0.10)
-----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.01) (0.01) --
Net realized gains (0.02) -- --
-----------------------------------------------------------------------------------------------
Total Distributions (0.03) (0.01) --
-----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.89 $14.53 $9.90
-----------------------------------------------------------------------------------------------
Total Return 16.49%++ 46.88% (1.00)%++
-----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $273,774 $168,280 $20,787
-----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 0.78%+ 0.86% 1.00%+
Net investment income 0.11+ 0.07 0.52+
-----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 5% 14% 1%
===============================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) For the period from May 1, 1998 (commencement of operations) to October 31,
1998.
(3) The Manager waived all or part of its fees for the period ended October 31,
1998. If such fees were not waived, the per share decrease to net
investment income and the actual annualized expense ratio would have been
$0.02 and 1.77%, respectively.
* Amount represents less than $0.01.
# The amount shown may not be consistent with the change in aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Fund shares throughout the year.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
(This page intentionally left blank.)
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMONSMITHBARNEY]
Directors
Victor K. Atkins
A.E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Managers
SSB Citi Fund Management LLC
Travelers Investment Adviser, Inc.
Custodian
PFPC Trust Company
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, CT 06183
This report is submitted for the general information of the shareholders of the
Travelers Series Fund Inc.--AIM Capital Appreciation and Smith Barney Large
Capitalization Growth Portfolios. It is not authorized for distribution to
prospective investors unless accompanied or preceded by a current Prospectus for
the Portfolios, which contains information concerning the Portfolios' investment
policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York 10013
IN0806 6/00
<PAGE>
Travelers Series Fund Inc.
Smith Barney Aggressive
Growth Portfolio
Smith Barney
Mid Cap Portfolio
--------------------
SEMI - ANNUAL REPORT
--------------------
April 30, 2000
[LOGO OF SMITH BARNEY]
NOT FDIC INSURED.NOT BANK INSURED.MAY LOSE VALUE
<PAGE>
Travelers Series
Fund Inc.
[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the first report for the Travelers Series Fund Inc. --
Smith Barney Aggressive Growth Portfolio and Smith Barney Mid Cap Portfolio
("Portfolio(s)") for the period from November 1, 1999 through April 30, 2000. In
this report, we summarize the period's prevailing economic and market conditions
and outline our investment strategy1. A detailed summary of performance and
current holdings can be found in the appropriate sections that follow. We hope
you find this report useful and informative.
Portfolio Highlights2
Smith Barney Aggressive Growth Portfolio
For the period since inception (November 1, 1999) through April 30, 2000, the
Smith Barney Aggressive Growth Portfolio ("Portfolio") returned 33.80%. In
comparison, the Standard & Poor's 500 Index ("S&P 500")3 returned 7.89% for the
same period.
The Portfolio seeks long-term capital appreciation by investing primarily in
common stocks of companies that the manager believes are experiencing, or will
experience, growth in earnings that exceeds the average rate of earnings growth
of the companies comprising the S&P 500. The Portfolio may invest in the
securities of large, well-known companies that offer prospects of long-term
earnings growth. However, because higher earnings growth rates are often
achieved by small to medium-sized companies, a significant portion of the
Portfolio's assets are invested in the securities of such companies.
-------
1 The information provided represents the opinion of the manager and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the Portfolios.
2 The following securities reflect the holdings of the Travelers Series Fund
Inc- Smith Barney Aggressive Growth Portfolio and Smith Barney Mid Cap
Portfolio as of April 30, 2000. Stock information is for information
purposes only. It should not be relied upon for current prices of shares or
for trading securities. Further, there is no assurance that certain
securities will remain in or out of the Portfolios. The Portfolios'
holdings are subject to change. Please refer to pages six through 14 for
the percentage breakdown of the Portfolios' holdings.
3 The Standard & Poor's 500 Index ("S&P 500") is a market
capitalization-weighted measure of 500 widely held common stocks. An
investor cannot invest directly in an index.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 1
<PAGE>
During the reporting period, the Federal Reserve Board ("Fed") raised interest
rates three times by a total of 75 basis points.4 Most recently, on May 16,
2000, the Fed raised interest rates an additional 50 basis points to 6.50%. Due
to the actions of the Fed, many investors have gravitated towards those
companies that do not generally rely on bank financings to support their
activities, are in non-cyclical businesses, have the possibility for outstanding
short as well as long-term earnings growth and are still in the early stages of
their life cycles.
Advances in genomics, which led to productivity gains in drug discovery have led
to significant interest in the pharmaceuticals sector. Strong sales of IDEC
Pharmaceutical's treatment for B-Cell Lymphoma have led to strong sales and
earnings growth. In addition, sizable positions in Chiron, Genentech, Imclone
Systems, Nanogen and Alkermes have made positive contributions to Portfolio
performance.
In addition, the Portfolio's holdings in the technology and telecommunications
sectors also had a positive effect on performance during the period. (Past
performance is not indicative of future results.)
Undoubtedly, some of the Portfolio's holdings in the technology and
biotechnology sectors have enjoyed an expansion in their price-to-earnings
("P/E") ratio5, prior to the recent correction in the NASDAQ, due to many
investors' preference to own companies addressing emerging technology. And while
no guarantees can be given, we believe that every one of our holdings has the
potential to become a leader in its respective markets in the years ahead. We
will therefore not add marginal companies to the Portfolio simply because they
are being swept up in the periphery of euphoria.
Smith Barney Mid Cap Portfolio
For the period since inception (November 1, 1999) through April 30, 2000, the
Smith Barney Mid Cap Portfolio ("Portfolio") returned 29.44%. In comparison, the
Standard & Poor's MidCap 400 Index ("S&P MidCap")6 returned 21.14% for the same
period.
The Portfolio seeks long-term growth of capital by investing primarily in equity
securities of medium-sized companies. Medium-sized companies are those companies
whose market capitalization is within the market capitalization range of
companies in the S&P MidCap at the time of the Portfolio's investment. The
------------
4 A basis point is 0.01% or one one-hundredth of a percent.
5 The price-to-earnings ratio is the price of a stock divided by its earnings
per share.
6 The S&P Midcap is a market-value weighted index, consisting of 400 domestic
stocks chosen for market size liquidating and industry group
representatons. An investor cannot invest directly in an index.
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
size of the companies in the S&P MidCap changes with market conditions and the
composition of the S&P MidCap.
As of January 31, 2000, the largest market capitalization of a company in the
S&P MidCap was $37 billion and the smallest market capitalization was $200
million. Equity securities include exchange traded and over-the-counter common
stocks, preferred stocks, debt securities convertible into equity securities and
warrants and rights relating to equity securities. The Portfolio may also invest
up to 25% of its assets in securities of foreign issuers both directly and
through depository receipts for those securities.
Since the Portfolio's inception, we have remained committed to our investment
style and we continue to focus on maintaining a quality-oriented Portfolio that
we believe will provide higher returns with potentially lower risk over time. We
think our positive performance during the period was due both to our solid stock
selection and our disciplined and conservative investment style. (Of course,
past performance is not indicative of future results.)
Conceptually, we seek to take advantage of the tremendous valuation gap between
large- and middle-capitalization companies without taking on a lot of undue
risk. To accomplish this goal, we have followed an investment approach that
focuses on companies with what we deem to be significant competitive advantages
and shareholder-oriented managements. In our view, many of these companies are
also leaders in their respective fields and are poised to leverage that
leadership position. We also look for consistent growth, positive cash flow and
high return on equity as factors in determining whether to invest in a company.
From 1995 through the beginning of 1999 large-capitalization stocks
significantly outperformed small-and mid-capitalization companies. However,
beginning early in 1999 this began to change as earnings for mid-cap companies
relative to large-cap companies reversed and began to accelerate. Historically,
these factors have led to outperformance of mid-cap stocks. Indeed, since the
inception of the Portfolio, mid-cap stocks have outperformed large-cap stocks,
as many highly visible large capitalization companies which comprise the S&P 500
reported disappointing earnings and saw their share prices decline. We
anticipate that this trend of superior mid-caps earnings may continue for the
next few years as consensus earnings estimates suggest that mid-cap companies
will continue to grow earnings at a faster pace than large-cap companies.
In addition to strong fundamentals, we think that other potential drivers of
mid-cap performance include increasing institutional ownership, greater coverage
by Wall Street analysts and higher merger and acquisition activity. In fact, we
have already seen these trends impact many of the stocks we own.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 3
<PAGE>
Currently, the Portfolio's largest concentrations are in the technology,
finance, and consumer sectors. Relative to the S&P MidCap, the Portfolio has a
neutral weighting in the technology sector, the largest sector of the S&P
MidCap. In this sector, our largest holdings were in semiconductor companies
Applied MicroCircuits, Xilinx, and Maxim Integrated Products. These companies
remain focused on communications, which we believe represents the next engine
for growth in the technology market. Applied MicroCircuits, for example, is
currently benefiting from a strong demand for optical systems and a broadening
of its customer base.
The Portfolio is overweighted in the financial sector, and although this sector
is under pressure this year due to rising interest rates, we believe it provides
the best risk/return tradeoff of any sector in the market today. As a result, we
have been increasing the Portfolio's weighting in this category. As interest
rate fears begin to subside, we believe our investment in financial services
companies such as Providian, Ambac Financial, and Capital One should positively
contribute to portfolio performance over the near term. (Of course no guarantees
can be given that our expectations will be realized.)
The Portfolio has a neutral weighting in the consumer services sector with the
Portfolio's largest holdings in Imax Corp. and Entercom Communications. Imax
reported a strong quarter due in part to the success of "Fantasia," a Disney
movie shown exclusively in Imax theaters. The success of "Fantasia" in our view,
may validate Imax's theater systems as another outlet for major movie studios to
run commercial films on Imax screens. Entercom Communications remains one of the
fastest-growing radio companies, having established market-leading stations in
many of the top markets.
In closing, thank you for investing in the Travelers Series Fund Inc. We look
forward to continuing to help you to pursue your financial goals in the new
century.
Sincerely,
/s/ Heath B. McLendon
--------------------------
Heath B. McLendon
Chairman
May 29, 2000
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Smith Barney Aggressive Growth Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-----------------------
Beginning End Income Total
Period Ended of Period of Period Dividends Return+
================================================================================
11/1/99* - 3/31/2000 $10.00 $13.37 $0.01 33.80%++
================================================================================
--------------------------------------------------------------------------------
Smith Barney Mid Cap Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-----------------------
Beginning End Income Total
Period Ended of Period of Period Dividends Return+
================================================================================
11/1/99* - 3/31/2000 $10.00 $12.93 $0.01 29.44%++
================================================================================
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Averge Annual Total Return+
--------------------------------------------------------------------------------
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio Portfolio
================================================================================
11/1/99* through 3/31/2000++ 33.80% 29.44%
================================================================================
+ Assumes the reinvestment of all dividends and capital gain distributions.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 5
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY AGGRESIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
COMMON STOCK -- 88.3%
Biotechnology -- 15.6%
3,600 Alkermes, Inc.+ $ 191,700
13,400 Amgen Inc.+ 750,400
40 Antigenics Inc.+ 660
18,700 Chiron Corp.+ 846,175
1,400 COR Therapeutics, Inc.+ 106,663
700 Genentech, Inc.+ 81,900
12,250 Genzyme Corp. General Division+ 597,953
500 Genzyme Molecular Oncology+ 5,656
3,800 ImClone Systems Inc.+ 345,800
2,300 Nabi+ 11,069
50 Sequenom Inc.+ 1,212
-------------------------------------------------------------------------------
2,939,188
-------------------------------------------------------------------------------
Broadcasting/Cable -- 11.0%
10,850 AT&T - Liberty Media Group, Class A Shares+ 541,822
5,600 Cablevision Systems Corp., Class A Shares+ 379,050
8,900 CBS Corp.+ 522,875
Comcast Corp.:
200 Class A Shares+ 7,800
13,400 Class A Special Shares+ 536,837
4,500 World Wrestling Federation Entertainment, Inc.+ 76,781
-------------------------------------------------------------------------------
2,065,165
-------------------------------------------------------------------------------
Communications -- 7.4%
16,800 Adaptive Broadband Corp.+ 546,000
17,650 Arch Communications Group, Inc.+ 131,272
3,400 AT&T Corp. 158,737
20 Avanex Corp.+ 2,438
8,800 C-COR.net Corp.+ 344,300
3,800 Nokia Oyj ADR 216,125
-------------------------------------------------------------------------------
1,398,872
-------------------------------------------------------------------------------
Computer Hardware -- 3.1%
Quantum Corp.:
27,900 DLT & Storage Systems+ 327,825
22,350 Hard Disk Drive+ 261,216
-------------------------------------------------------------------------------
589,041
-------------------------------------------------------------------------------
Computer Software/Internet -- 5.4%
14,250 America Online, Inc.+ 852,328
100 Juniper Networks, Inc.+ 21,269
1,900 Microsoft Corp.+ 132,525
See Notes to Financial Statements.
-------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Computer Software/Internet -- 5.4% (continued)
80 Net2000 Communications, Inc.+ $ 1,180
30 Organic, Inc.+ 450
-------------------------------------------------------------------------------
1,007,752
-------------------------------------------------------------------------------
Diversified Technology -- 0.9%
100 Agilent Technologies, Inc.+ 8,862
1,500 Drexler Technology Corp.+ 18,937
3,800 Excel Technology, Inc.+ 119,225
3,000 GenRad, Inc.+ 22,312
25 Palm, Inc.+ 681
-------------------------------------------------------------------------------
170,017
-------------------------------------------------------------------------------
Drug Delivery/Testing -- 1.6%
600 Advanced Polymer Systems, Inc.+ 2,400
300 Albany Molecular Research, Inc.+ 13,162
6,100 ALZA Corp.+ 268,781
700 Cygnus, Inc.+ 8,750
-------------------------------------------------------------------------------
293,093
-------------------------------------------------------------------------------
E-Commerce -- 0.0%
275 Pets.com, Inc.+ 791
-------------------------------------------------------------------------------
Electronic - Military -- 1.7%
5,600 L-3 Communications Holdings, Inc.+ 298,200
600 Tech-Sym Corp.+ 12,750
-------------------------------------------------------------------------------
310,950
-------------------------------------------------------------------------------
Healthcare - Miscellaneous -- 0.8%
160 Allos Therapeutics Inc.+ 1,720
100 Biosite Diagnostics Inc.+ 2,312
14 Diversa Corp.+ 378
4,200 Genzyme Surgical Products+ 35,963
3,900 Nanogen, Inc.+ 95,306
800 Tularik Inc.+ 22,600
-------------------------------------------------------------------------------
158,279
-------------------------------------------------------------------------------
Investment Banking and Other Financials -- 6.1%
8,400 Astoria Financial Corp. 231,525
100 The Goldman Sachs Group, Inc. 9,325
7,500 Lehman Brothers Holdings Inc. 615,469
1,000 Merrill Lynch & Co., Inc. 101,938
1,200 Neuberger Berman Inc. 39,450
8,400 Roslyn Bancorp, Inc. 142,800
-------------------------------------------------------------------------------
1,140,507
-------------------------------------------------------------------------------
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 7
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Managed Healthcare Providers-- 3.9%
11,150 UnitedHealth Group Inc. $ 743,566
-------------------------------------------------------------------------------
Multi-Industry -- 5.6%
200 The Source Information Management Co.+ 2,950
22,900 Tyco International Ltd. 1,051,969
-------------------------------------------------------------------------------
1,054,919
-------------------------------------------------------------------------------
Oil Field Equipment/Services -- 4.3%
5,700 Core Laboratories N.V.+ 161,737
9,850 Grant Prideco, Inc.+ 189,613
11,150 Weatherford International, Inc.+ 452,969
-------------------------------------------------------------------------------
804,319
-------------------------------------------------------------------------------
Pharmaceuticals -- 10.3%
11,150 Forest Laboratories, Inc.+ 937,297
8,900 IDEC Pharmaceuticals Corp.+ 569,600
4,450 Isis Pharmaceuticals, Inc.+ 49,506
2,000 Pfizer Inc. 84,250
1,590 Pharmacia Corp. 79,401
10,300 SICOR Inc.+ 116,519
200 Vertex Pharmaceuticals Inc.+ 104,500
-------------------------------------------------------------------------------
1,941,073
-------------------------------------------------------------------------------
Semiconductors -- 10.6%
100 Caliper Technologies Corp.+ 3,750
5,600 Cirrus Logic, Inc.+ 91,700
9,175 Intel Corp. 1,163,505
5,000 Micron Technology, Inc. 696,250
25 Quantum Effect Devices, Inc.+ 1,457
3,100 Standard Microsystems Corp.+ 40,300
-------------------------------------------------------------------------------
1,996,962
-------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $15,354,215) 16,614,494
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
WARRANTS -- 0.0%
7,200 Arch Communications Group, Inc., Expire 9/1/01+
(Cost -- $14,400) $ 8,100
===============================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $15,368,615) 16,622,594
===============================================================================
FACE
AMOUNT SECURITY VALUE
===============================================================================
REPURCHASE AGREEMENT -- 11.7%
$2,190,000 Goldman, Sachs & Co., 5.670% due 5/1/00; Proceeds
at maturity -- $2,191,035; (Fully collateralized by
U.S. Treasury Notes and Bonds, 5.375% to 8.750%
due 6/30/03 to 5/15/17; Market value -- $2,233,800)
(Cost -- $2,190,000) 2,190,000
===============================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $17,558,615*) $18,812,594
===============================================================================
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY AGGRESSIVE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
COMMON STOCK -- 85.4%
Automobiles -- 1.2%
2,450 Harley-Davidson, Inc. $ 97,541
-------------------------------------------------------------------------------
Banking -- 2.6%
1,880 Commerce Bancorp, Inc. 74,613
1,300 Marshall & Ilsley Corp. 60,366
2,700 North Fork Bancorporation, Inc. 43,706
400 State Street Corp. 38,750
-------------------------------------------------------------------------------
217,435
-------------------------------------------------------------------------------
Broadcast Media -- 4.4%
1,500 Cablevision Systems Corp., Class A Shares+ 101,531
1,300 Entercom Communications Corp.+ 55,250
4,600 Imax Corp.+ 105,800
2,200 Spanish Broadcasting System, Inc.+ 41,110
600 Univision Communications, Inc., Class A Shares+ 65,550
-------------------------------------------------------------------------------
369,241
-------------------------------------------------------------------------------
Building and Construction -- 1.3%
2,605 Vulcan Materials Co. 114,132
-------------------------------------------------------------------------------
Communications - Equipment -- 2.6%
1,800 ADC Telecommunications, Inc.+ 109,350
3,300 Valassis Communications, Inc.+ 112,406
-------------------------------------------------------------------------------
221,756
-------------------------------------------------------------------------------
Computer Hardware -- 1.1%
775 Lexmark International Group, Inc., Class A Shares+ 91,450
-------------------------------------------------------------------------------
Computer Software -- 10.1%
10 724 Solutions Inc.+ 505
1,324 Advent Software, Inc.+ 69,510
800 Citrix Systems, Inc.+ 48,850
825 Covad Communications Group, Inc.+ 22,894
1,830 Electronic Arts Inc.+ 110,715
3,150 Fiserv, Inc.+ 144,703
900 Mercury Interactive Corp.+ 81,000
1,500 Siebel Systems, Inc. 184,313
1,762 VERITAS Software Corp.+ 189,002
-------------------------------------------------------------------------------
851,492
-------------------------------------------------------------------------------
Electronics - Instruments -- 6.9%
1,050 AES Corp. 94,434
700 Applied Micro Circuits Corp.+ 90,213
800 Calpine Corp.+ 73,200
1,200 Jabil Circuit, Inc.+ 49,125
See Notes to Financial Stetements.
-------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY MID CAP PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Electronics - Instruments -- 6.9% (continued)
2,868 Molex, Inc., Class A Shares $114,720
1,250 Sanmina Corp.+ 75,078
790 Teradyne, Inc.+ 86,900
-------------------------------------------------------------------------------
583,670
-------------------------------------------------------------------------------
Electronics - Semiconductors -- 7.2%
750 Altera Corp.+ 76,688
750 Atmel Corp.+ 36,703
35 Avanex Corp.+ 4,266
2,600 Linear Technology Corp. 148,525
2,050 Maxim Integrated Products, Inc.+ 132,866
1,400 The Montana Power Co. 61,688
600 Novellus Systems, Inc.+ 40,013
175 PMC-Sierra, Inc.+ 33,578
1,050 Xilinx, Inc.+ 76,913
-------------------------------------------------------------------------------
611,240
-------------------------------------------------------------------------------
Entertainment -- 1.0%
4,000 Premier Parks Inc. 86,250
-------------------------------------------------------------------------------
Financial -- 1.6%
2,790 Ambac Financial Group, Inc. 133,920
-------------------------------------------------------------------------------
Foods -- 2.7%
4,330 Keebler Foods Co.+ 136,124
4,200 Pepsi Bottling Group, Inc. 90,563
-------------------------------------------------------------------------------
226,687
-------------------------------------------------------------------------------
Healthcare - Drugs -- 3.7%
370 Affymetrix, Inc.+ 49,973
900 Forest Laboratories, Inc.+ 75,656
2,076 Sepracor Inc. 190,992
-------------------------------------------------------------------------------
316,621
-------------------------------------------------------------------------------
Household Furniture and Apparel -- 0.8%
1,950 Bed Bath & Beyond Inc.+ 71,541
-------------------------------------------------------------------------------
Insurance - Brokers -- 0.9%
2,000 Arthur J. Gallagher & Co. 74,500
-------------------------------------------------------------------------------
Insurance - Life -- 2.5%
4,658 Annuity and Life & Re Holdings, Ltd.++ 100,729
3,876 Nationwide Financial Services, Inc., Class A Shares 108,044
-------------------------------------------------------------------------------
208,773
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY MIDCAP PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Insurance - Property -- 2.8%
-------------------------------------------------------------------------------
5,562 ACE Ltd. $133,140
2,250 XL Capital, Ltd., Class A Shares++ 107,156
-------------------------------------------------------------------------------
240,296
-------------------------------------------------------------------------------
Internet Services -- 1.0%
160 InfoSpace, Inc.+ 11,490
150 Juniper Networks, Inc.+ 31,903
250 NBC Internet, Inc., Class A Shares+ 5,781
650 Project Software & Development, Inc.+ 19,825
280 Snowball, Inc.+ 1,015
300 VerticalNet, Inc.+ 16,200
15 WebMethods, Inc.+ 1,350
-------------------------------------------------------------------------------
87,564
-------------------------------------------------------------------------------
Investment Bankers - Brokers -- 2.9%
2,200 Capital One Financial Corp. 96,250
1,400 Providian Financial Corp. 123,288
837 Waddell & Reed Financial, Inc., Class A Shares 22,298
-------------------------------------------------------------------------------
241,836
-------------------------------------------------------------------------------
Manufacturing -- 1.4%
1,250 Waters Corp.+ 118,438
-------------------------------------------------------------------------------
Medical Products and Services -- 2.4%
375 Genentech, Inc.+ 43,875
460 MedImmune, Inc. 73,571
1,200 Wellpoint Health Networks Inc.+ 88,500
-------------------------------------------------------------------------------
205,946
-------------------------------------------------------------------------------
Metals and Mining -- 1.3%
3,340 Mueller Industries, Inc.+ 110,011
-------------------------------------------------------------------------------
Oil - Domestic -- 1.4%
1,450 Anadarko Petroleum Corp. 62,984
1,175 The Coastal Corp. 58,970
-------------------------------------------------------------------------------
121,954
-------------------------------------------------------------------------------
Oil and Gas Drilling - Equipment -- 3.0%
2,880 Diamond Offshore Drilling, Inc. 116,100
3,455 Newfield Exploration Co.+ 140,359
-------------------------------------------------------------------------------
256,459
-------------------------------------------------------------------------------
Oil Well Equipment and Service -- 3.5%
1,565 BJ Services Co.+ 109,941
1,710 Cooper Cameron Corp.+ 128,250
See Notes to Financail Statements.
-------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY MID CAP PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Oil Well Equipment and Service -- 3.5% (continued)
1,050 Grant Prideco, Inc.+ $ 20,213
1,050 Weatherford International, Inc.+ 42,656
--------------------------------------------------------------------------------
301,060
--------------------------------------------------------------------------------
Pharmaceuticals -- 0.3%
300 Millennium Pharmaceuticals, Inc.+ 23,813
--------------------------------------------------------------------------------
Pipelines -- 0.8%
1,050 Dynegy Inc., Class A Shares 68,709
--------------------------------------------------------------------------------
Real Estate Investment Trusts -- 0.6%
3,750 IndyMac Mortgage Holdings, Inc. 48,984
--------------------------------------------------------------------------------
Retail - Department -- 0.6%
950 Dollar Tree Stores, Inc.+ 54,981
--------------------------------------------------------------------------------
Retail - Specialty -- 0.8%
850 Best Buy Co., Inc.+ 68,638
--------------------------------------------------------------------------------
Savings and Loan -- 0.5%
1,700 Countrywide Credit Industries, Inc. 46,963
--------------------------------------------------------------------------------
Services - Ad/Market -- 0.2%
100 eBay Inc.+ 15,919
--------------------------------------------------------------------------------
Services - Commercial and Construction -- 2.1%
1,850 Ecolab, Inc. 72,266
970 SPX Corp. 106,579
--------------------------------------------------------------------------------
178,845
--------------------------------------------------------------------------------
Services - Computer Systems -- 2.2%
4,809 FactSet Research Systems Inc.+ 138,259
1,325 Intuit Inc.+ 47,617
--------------------------------------------------------------------------------
185,876
--------------------------------------------------------------------------------
Specialized Services -- 1.7%
2,260 Bowater Inc. 124,300
250 CMG Information Services, Inc.+ 17,813
--------------------------------------------------------------------------------
142,113
--------------------------------------------------------------------------------
Telecommunications - Long Distance -- 1.7%
225 Colt Telecom Group plc, Sponsored ADR+ 38,419
1,100 L-3 Communications Holdings, Inc.+ 58,575
145 Net2000 Communications, Inc.+ 2,139
750 Time Warner Telecom Inc.+ 41,063
--------------------------------------------------------------------------------
140,196
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY MID CAP PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Telephone -- 1.5%
3,445 Century Telephone Enterprises, Inc. $ 84,403
1,055 Intermedia Communications Inc.+ 42,991
--------------------------------------------------------------------------------
127,394
--------------------------------------------------------------------------------
Transportation - Railroad -- 1.2%
1,400 Kansas City Southern Industries, Inc. 100,625
--------------------------------------------------------------------------------
Trucking -- 0.8%
3,450 Knightsbridge Tankers Ltd. 64,256
--------------------------------------------------------------------------------
Wireless - Equipment -- 0.1%
40 Aether Systems, Inc.+ 6,659
45 Palm, Inc.+ 1,227
--------------------------------------------------------------------------------
7,886
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $6,199,907) 7,235,011
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 14.6%
$1,236,000 Goldman, Sachs & Co., 5.670% due 5/1/00; Proceeds at
maturity -- $1,236,584; (Fully collateralized by
U.S. Treasury Notes & Bonds, 7.250% to 11.125% due
10/31/01 to 2/15/21; Market value -- $1,260,721)
(Cost -- $1,236,000) 1,236,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $7,435,907*) $8,471,011
================================================================================
+ Non-income producing security.
++ A portion of this security has been segregated by the Custodian for futures
contract commitments.
* Aggregate cost for Federal income tax purpose is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 13, 2000
--------------------------------------------------------------------------------
Smith Barney
Aggressive Smith Barney
Growth Mid Cap
Portfolio Portfolio
================================================================================
ASSETS:
Investments -- Cost $ 15,368,615 $ 6,199,907
Repurchase Agreements -- Cost 2,190,000 1,236,000
================================================================================
Investments -- Value $ 16,622,594 $ 7,235,011
Repurchase Agreements -- Value 2,190,000 1,236,000
Cash 563 629
Receivable for securities sold 6,465 --
Receivable from manager 18,727 25,514
Dividends and interest receivable 1,570 2,870
Receivable from broker - variation margin -- 8,250
--------------------------------------------------------------------------------
Total Assets 18,839,919 8,508,274
--------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 6,343 --
Accrued expenses 23,120 22,197
--------------------------------------------------------------------------------
Total Liabilities 29,463 22,197
--------------------------------------------------------------------------------
Total Net Assets $18,810,456 $8,486,077
================================================================================
NET ASSETS:
Par value of capital shares $ 14 $ 7
Capital paid in excess of par value 17,549,051 7,221,420
Undistributed (overdistributed) net
investment income (886) 9,760
Accumulated net realized gain from security
transactions and futures contracts 8,298 225,446
Net unrealized appreciation of
investments and futures contracts 1,253,979 1,029,444
--------------------------------------------------------------------------------
Total Net Assets $18,810,456 $8,486,077
================================================================================
Shares Outstanding 1,407,382 656,346
--------------------------------------------------------------------------------
Net Asset Value $13.37 $12.93
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Period Ended April 30, 2000(a)
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio Portfolio
================================================================================
INVESTMENT INCOME:
Interest $ 41,887 $ 28,637
Dividends 5,808 12,337
Less: Foreign withholding tax (155) --
--------------------------------------------------------------------------------
Total Investment Income 47,540 40,974
--------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 35,520 20,691
Shareholder communications 14,409 4,408
Custody 8,822 3,901
Shareholder and system servicing fees 7,886 6,187
Audit and legal 5,500 10,500
Directors' fees 1,812 1,173
Other 400 11,275
--------------------------------------------------------------------------------
Total Expenses 74,349 58,135
Less: Management fee waivers and
expense reimbursement (Note 2) (29,927) (31,927)
--------------------------------------------------------------------------------
Net Expenses 44,422 26,208
--------------------------------------------------------------------------------
Net Investment Income 3,118 14,766
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FUTURES CONTRACTS (NOTES 3 AND 5):
Realized Gain From:
Securities transactions (excluding short-term
securities) 8,298 153,880
Futures contracts -- 71,566
--------------------------------------------------------------------------------
Net Realized Gain 8,298 225,446
--------------------------------------------------------------------------------
Changes in Net Unrealized Appreciation
of Investments and Futures Contracts:
Beginning of period -- --
End of period 1,253,979 1,029,444
--------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 1,253,979 1,029,444
--------------------------------------------------------------------------------
Net Gain on Investments and Futures Contracts 1,262,277 1,254,890
--------------------------------------------------------------------------------
Increase in Net Assets From Operations $1,265,395 $1,269,656
================================================================================
(a) For the period November 1, 1999 (commencement of operations) to April 30,
2000.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
--------------------------------------------------------------------------------
For the Period Ended April 30, 2000(a)
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio Portfolio
================================================================================
OPERATIONS:
Net investment income $ 3,118 $ 14,766
Net realized gain 8,298 225,446
Increase in net unrealized appreciation 1,253,979 1,029,444
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,265,395 1,269,656
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (4,004) (5,006)
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (4,004) (5,006)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 17,545,061 7,256,572
Net asset value of shares issued
for reinvestment of dividends 4,004 5,006
Cost of shares reacquired -- (40,151)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 17,549,065 7,221,427
--------------------------------------------------------------------------------
Increase in Net Assets 18,810,456 8,486,077
NET ASSETS:
Beginning of period -- --
--------------------------------------------------------------------------------
End of period* $18,810,456 $8,486,077
================================================================================
*Includes undistributed (overdistributed)
net investment income of: $(886) $9,760
================================================================================
(a) For the period November 1, 1999 (commencement of operations) to April 30,
2000.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Smith Barney Aggressive Growth Portfolio and Smith Barney Mid Cap Portfolio
("Portfolio(s)") are separate investment portfolios of the Travelers Series Fund
Inc. ("Fund"). The Fund, a Maryland corporation, is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company and consists of these portfolios and thirteen other separate investment
portfolios: Smith Barney Large Cap Value, Alliance Growth, Van Kampen
Enterprise, Smith Barney International Equity, Smith Barney Pacific Basin,
Travelers Managed Income, Putnam Diversified Income, INVESCO Global Strategic
Income, Smith Barney High Income, MFS Total Return, Smith Barney Money Market,
AIM Capital Appreciation Portfolio and Smith Barney Large Capitalization Growth
Portfolios. Shares of the Fund are offered only to insurance company separate
accounts that fund certain variable annuity and variable life insurance
contracts. The financial statements and financial highlights for the other
portfolios are presented in separate shareholder reports.
The significant accounting policies followed by the Portfolios are: (a) security
transactions are accounted for on trade date; (b) securities traded on national
securities markets are valued at the closing prices on such markets; securities
for which no sales price was reported and U.S. government agencies and
obligations are valued at the mean between the bid and asked prices; (c)
securities maturing within 60 days are valued at cost plus accreted discount or
minus amortized premium, which approximates value; (d) securities for which
market quotations are not available will be valued in good faith at fair value
by or under the direction of the Board of Directors; (e) interest income is
recorded on an accrual basis; (f) dividend income is recorded on the ex-dividend
date; foreign dividends are recorded on the ex-dividend date or as soon as
practical after the Portfolios determine the existence of a dividend declaration
after exercising reasonable due diligence; (g) gains or losses on the sale of
securities are calculated by using the specific identification method; (h) the
accounting records of the Portfolios are maintained in U.S. dollars. All assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars based on the rate of exchange of such currencies against U.S. dollars on
the date of valuation. Purchases and sales of securities, and income and
expenses are translated at the rate of exchange quoted on the respective date
that such transactions are recorded. Differences between
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
income or expense amounts recorded and collected or paid are adjusted when
reported by the custodian; (i) the character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles; (j) the Portfolios intend
to comply with the applicable provisions of the Internal Revenue Code of 1986,
as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise taxes; and (k) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), acts as investment manager of the Smith Barney
Aggressive Growth Portfolio ("SBAG") and Smith Barney Mid Cap Portfolio
("SBMC"). SBAG and SBMC pay SSBC a management fee calculated at the annual rates
of 0.80% and 0.75%, respectively, on the average daily net assets of each
Portfolio. For the period ended April 30, 2000, SSBC waived management fees of
$29,927 and $20,691 for SBAG and SBMC, respectively. In addition, SSBC
reimbursed expenses of $11,236 for SBMC.
Citi Fiduciary Trust Company ("CFTC"), another subsidiary of Citigroup, acts as
the Fund's transfer agent and PFPC Global Fund Services ("PFPC") acts as the
sub-transfer agent. CFTC receives account fees and asset-based fees that vary
according to the account size and type of account. PFPC is responsible for
shareholder recordkeeping and financial processing for all shareholder accounts
and is paid by CFTC. For the period ended April 30, 2000, the Portfolios paid
transfer agent fees of $5,000 to CFTC.
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions. During the period ended
April 30, 2000, SSB received brokerage commissions totaling $357.
All officers and one Director of the Fund are employees of SSB.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
3. Investments
For the period ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio Portfolio
================================================================================
Purchases $15,384,166 $8,175,310
--------------------------------------------------------------------------------
Sales 23,849 2,129,284
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio Portfolio
================================================================================
Gross unrealized appreciation $1,997,681 $1,320,546
Gross unrealized depreciation (743,702) (285,442)
--------------------------------------------------------------------------------
Net unrealized appreciation $1,253,979 $1,035,104
================================================================================
4. Lending of Portfolio Securities
Each Portfolio has an agreement with its custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities or high quality money market instruments that
are maintained at all times in an amount at least equal to the current market
value of the loaned securities, plus a margin which may vary depending on the
type of securities loaned. The custodian establishes and maintains the
collateral in a segregated account.
At April 30, 2000, the Portfolios had no securities on loan.
5. Futures Contracts
Initial margin deposits made upon entering into futures contracts are recognized
as assets. Securities equal to the initial margin amount are segregated by the
custodian in the name of the broker. Additional securities are also segregated
up
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
to the current market value of the futures contract. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's trading. Variation
margin payments are received or made and recognized as assets due from or
liabilities due to broker, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Portfolios record a realized gain or
loss equal to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolios basis in the contract.
The Portfolios enter into such contracts to hedge a portion of their portfolio.
The Portfolios bear the market risk that arise from changes in the value of the
financial instruments and securities indices (futures contracts).
At April 30, 2000, SBMC had the following open futures contracts:
# of Basis Market Unrealized
Contracts Expiration Value Value Loss
================================================================================
Sold Contracts:
S&P Mid Cap 400 3 6/00 729,785 724,125 $(5,660)
================================================================================
6. Options Contracts
When the Portfolios write a covered call option, an amount equal to the premium
received by the Portfolios are recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, the Portfolios realize a
gain equal to the amount of the premium received. When the Portfolios enter into
a closing purchase transaction, the Portfolios realize a gain or loss depending
upon whether the cost of the closing transaction is greater or less than the
premium originally received, without regard to any unrealized gain or loss on
the underlying security, and the liability related to such option is eliminated.
When a written call option is exercised, the cost of the security sold will be
decreased by the premium originally received. When written index options are
exercised, settlement is made in cash.
The risk in writing a covered call option is that the Portfolios give up the
opportunity to participate in any increase in the price of the underlying
security beyond the exercise price.
During the period ended April 30, 2000, the Portfolios did not enter into any
written covered call option contracts.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
7. Capital Shares
At April 30, 2000, the Fund had six billion shares of capital stock authorized
with a par value of $0.00001 per share. Each share of a Portfolio represents an
equal proportionate interest in that Portfolio with each other share of the same
Portfolio and has an equal entitlement to any dividends and distributions made
by the Portfolio.
Transactions in shares of each Portfolio were as follows:
Period Ended
April 30, 2000*
================================================================================
Smith Barney Aggressive Growth Portfolio
Shares sold 1,407,049
Shares issued on reinvestment 333
--------------------------------------------------------------------------------
Net Increase 1,407,382
================================================================================
Smith Barney Mid Cap Portfolio
Shares sold 659,255
Shares issued on reinvestment 434
Shares reacquired (3,343)
--------------------------------------------------------------------------------
Net Increase 656,346
================================================================================
* For the period November 1, 1999 (commencement of operations) through April 30,
2000.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Finanical Highlights
--------------------------------------------------------------------------------
For a share of each class of beneficial interest outstanding throughout the
period:
Smith Barney Smith Barney
Aggressive Growth Mid Cap
Portfolio(1) Portfolio(1)
================================================================================
Net Asset Value, Beginning of Period $10.00 $10.00
--------------------------------------------------------------------------------
Income From Operations:
Net investment income(2) 0.01 0.03
Net realized and unrealized gain 3.37 2.91
--------------------------------------------------------------------------------
Total Income From Operations 3.38 2.94
--------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.01) (0.01)
--------------------------------------------------------------------------------
Total Distributions (0.01) (0.01)
--------------------------------------------------------------------------------
Net Asset Value, End of Period $13.37 $12.93
--------------------------------------------------------------------------------
Total Return++ 33.80% 29.44%
--------------------------------------------------------------------------------
Net Assets, End of Period (000s) $18,810 $8,486
--------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses(2)(3) 1.00% 0.95%
Net investment income 0.07 0.53
--------------------------------------------------------------------------------
Portfolio Turnover Rate 1% 45%
================================================================================
(1) For the period November 1, 1999 (commencement of operations) to April 30,
2000 (unaudited).
(2) The Manager has agreed to waive all or a portion of its fees for the period
ended April 30, 2000. In addition, for the Smith Barney Mid Cap Portfolio,
the Manager has reimbursed expenses of $11,236 for the period ended
April 30, 2000. If such fees were not waived and expenses not reimbursed,
the per share effects on net investment income and the ratios of expenses
to average net assets would have been as follows:
Expense Ratios
Per Share Decreases in Without Fee Waivers
Net Investment Income and Reimbursement
---------------------- -------------------
Smith Barney Aggressive
Growth Portfolio $0.02 1.65%+
Smith Barney Mid Cap Portfolio 0.05 2.10+
(3) As a result of a voluntary expense limitation, the expense ratios will not
exceed 1.00% and 0.95% for the Smith Barney Aggressive Growth Portfolio and
the Smith Barney Mid Cap Portfolio, respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the period.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors
Victor K. Atkins
A.E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Richard A. Freeman
Vice President
Lawrence B. Weissman
Vice President
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Manager
SSB Citi Fund Management LLC
Custodian
PFPC Trust Company
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, CT 06183
This report is submitted for the general information of the shareholders of
the Travelers Series Fund Inc. -- Smith Barney Aggressive Growth Portfolio and
Smith Barney Mid Cap Portfolio. It is not authorized for distribution to
prospective investors unless accompanied or preceded by a current Prospectus for
the Portfolios, which contains information concerning the Portfolios' investment
policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York 10013
IN0896 6/00
<PAGE>
Travelers Series Fund Inc.
Smith Barney Large Cap Value Portfolio
Alliance Growth Portfolio
Van Kampen
Enterprise Portfolio
-------------------
SEMI-ANNUAL REPORT
-------------------
April 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Travelers Series
Fund Inc.
[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the semi-annual report of the Travelers Series Fund
Inc. -- Smith Barney Large Cap Value Portfolio, Alliance Growth Portfolio and
Van Kampen Enterprise Portfolio ("Portfolio(s)") for the period ended April 30,
2000. In this report, we summarize the period's prevailing economic and market
conditions and outline each Portfolio's investment strategy.1 A detailed summary
of performance and current holdings of each Portfolio can be found in the
appropriate sections that follow. We hope you find this report to be useful and
informative.
Portfolio Highlights2
Smith Barney Large Cap Value Portfolio
For the six months ended April 30, 2000, the Smith Barney Large Cap Value
Portfolio ("Portfolio") returned a negative 1.21%. In comparison, the
Portfolio's Lipper, Inc. peer group returned a negative 1.08% for the same
period. (Lipper, Inc. is a major fund-tracking organization.)
The financial markets during the reporting period were marked by historic levels
of volatility and a change in monetary policy by the Federal Reserve Board
("Fed"). The Fed raised interest rates three times for a total of 75 basis
points3 during the reporting period, and more recently on May 16, 2000, the Fed
raised interest rates an additional 50 basis points as a preemptive strike
against inflation. The markets also saw the divergence between those
well-established, blue-chip companies referred to as "Old Economy" and those
companies in the technology, telecommunications and Internet industries commonly
referred to as the "New Economy." By the end of 1999, technology
--------------
1 The information provided represents the opinion of the manager and is not
intended to be a forecast of future events, a guarantee of future results nor
investment advice. Further, there is no assurance that certain securities
will remain in or out of the Portfolios.
2 The following securities reflect the holdings of the Portfolios as of April
30, 2000. After such date this information may not reflect the current
Portfolio holdings. Stock information is for information purposes. It should
not be relied upon for current prices of shares or for trading securities.
Further, there is no assurance that securities will remain in or out of the
portfolios. Please refer to pages 10 through 21 for the percentage breakdown
of the Portfolios' holdings.
3 A basis point is 0.01% or one-hundreth of a percent.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 1
<PAGE>
stocks rose to new heights, significantly outperforming the overall stock
market. By the middle of the first quarter of 2000, however, most "New Economy"
stocks declined as investors began to reassess the valuations assigned to many
companies, looking to those "Old Economy" companies with more proven track
records.
Despite challenging market conditions, the managers believe that the growth in
the telecommunications sector should continue. As local telephone companies and
long distance providers see their businesses converge, they are expanding into
the fast growing and more profitable areas such as wireless, data and Internet
services. During the reporting period, the managers added Alltel Corp., a
national provider of wireline and wireless communication and information
services to the Portfolio. Currently, wireless services comprise greater than
half of the company's earnings and recent roaming agreements and asset swaps
with Bell Atlantic/Vodafone, should, in the managers' view, prove beneficial to
the company over the long term. (Of course, no guarantees can be made that their
expectations will in fact occur.)
The managers have also maintained a positive outlook towards the pharmaceuticals
industry. The share prices of many companies within this sector have recently
declined due in large part to the concerns regarding rising Medicare drug
benefits and other proposed government initiatives with the potential to
constrain industry pricing power. These concerns, combined with outsized patent
expirations and a lack of new potentially revolutionary products, have
negatively impacted the performance of this sector during the period.
Nevertheless, the managers believe that several pharmaceutical companies have
the potential to do well over the near term.
Alliance Growth Portfolio
For the six months ended April 30, 2000 the Alliance Growth Portfolio
("Portfolio") generated a total return of 15.10%. In comparison, the Russell
1000 Index4 returned 9.72% for the same period.
The stock market was marked by higher levels of volatility during the reporting
period. The strength of the stock market continued at the outset of 2000 but
later declined largely due to the effects of higher interest rates and changing
investor sentiment towards technology stocks.
In line with the Portfolio's investment objective of long-term capital growth,
the managers seek to invest primarily in the equity securities of U.S.
companies. The managers concentrate on finding companies they believe to have
solid growth potential at what they deem to be reasonable prices.
-------------
4 The Russell 1000 Index measures the performance of the 1,000 largest
companies in the Russell 3000 Index, which represents approximately 98% of
the investable U.S. equity market. An investor cannot invest directly in an
index.
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
The managers continue to think that many companies in the telecommunications,
technology and financial services sectors possess solid growth potential
characteristics. During the period, the managers significantly increased the
Portfolio's holdings in these industries through investments in Quest
Communications (broadband Internet company), Associates First Capital Corp. (a
consumer financial services company) and CIT Group Inc. (a consumer financial
services company). In their opinion, these companies are undervalued relative to
the overall market.
The performance of the Portfolio relative to the Russell 1000 Index will
continue to be influenced by its holdings in the telecommunications and
financial services sector. The managers believe that over the long term, their
selections should perform competitively over time. (Of course, no guarantees can
be made that this in fact will occur.)
Van Kampen Enterprise Portfolio
For the six months ended April 30, 2000 the Van Kampen Enterprise Portfolio
("Portfolio") generated a total return of 22.88%. In comparison, the Portfolio's
Lipper, Inc. peer group returned 18.32% for the same period. (Lipper, Inc. is a
major fund-tracking organization.)
The Portfolio is managed with a consistent philosophy: own companies with strong
business fundamentals at attractive valuations. In selecting stocks, the
managers generally look for at least one of the following fundamental
characteristics:
. Consistent earnings growth,
. Accelerating earnings growth,
. Better-than-expected fundamentals, or
. An underlying change in a company, industry, or regulatory environment.
The reporting period was marked by historic levels of market volatility.
Nonetheless, the Portfolio benefited from the positive performance of companies
that generated strong earnings growth. The Portfolio's eventual overweighting in
technology stocks largely contributed to performance during the period. The
price of many technology stocks, although volatile, continued to rise, helped by
investor confidence in the continued strength of the U.S. economy and increased
corporate spending on technology. Those Portfolio holdings in this sector that
benefited from performance during the period included:
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 3
<PAGE>
. Cisco Systems, a company that creates essential infrastructure for
computer network communications
. Oracle, a business that supplies software for new information services
. EMC, which provides data storage solutions to corporate customers
. Sun Microsystems, which provides solutions for maintaining network
computing environments
Outside the technology sector, the Portfolio was supported by competitive
returns from a number of telecommunications services and equipment stocks, most
notably Nokia, Qualcomm, and Nextel, which benefited from increased product and
service demand. In addition, the Portfolio's holdings in media and entertainment
stocks such as Univision, Metro Goldwyn Mayer, CBS, and Time Warner all posted
solid gains during the period.
Unfortunately, the overall decline in many share prices in the latter part of
the period detracted from Portfolio performance. The health care sector
underperformed the overall market, which negatively impacted the Portfolio. The
Portfolio's holdings in Bristol-Myers Squibb, who recently withdrew its
application to the FDA for what was believed to be a promising new drug,
declined during the period.
While no guarantees can be given, the managers will continue to favor
high-quality, well-established companies with strong business models over the
long term. As such, the managers will continue to search for what they believe
to be attractively priced stocks with long-term prospects possibly greater than
the overall market.
Thank you for investing in the Travelers Series Fund Inc. We look forward to
continuing to help you pursue your financial goals in the new century.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
May 18, 2000
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Smith Barney Large Cap Value Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-------------------
Beginning End of Income Capital Gain Total
Period Ended of Period Period Dividends Distributions Returns+
================================================================================
4/30/00 $19.83 $19.59 $0.00 $0.00 (1.21)%++
--------------------------------------------------------------------------------
10/31/99 18.94 19.83 0.24 0.52 8.52
--------------------------------------------------------------------------------
10/31/98 17.90 18.94 0.21 0.53 9.65
--------------------------------------------------------------------------------
10/31/97 14.84 17.90 0.18 0.17 23.38
--------------------------------------------------------------------------------
10/31/96 12.12 14.84 0.17 0.05 24.55
--------------------------------------------------------------------------------
10/31/95 10.14 12.12 0.06 0.00 20.21
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.14 0.00 0.00 1.40++
================================================================================
Total $0.86 $1.27
================================================================================
--------------------------------------------------------------------------------
Alliance Growth Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-------------------
Beginning End of Income Capital Gain Total
Period Ended of Period Period Dividends Distributions Returns+
--------------------------------------------------------------------------------
4/30/00 $28.35 $32.63 $0.00 $0.00 15.10%++
--------------------------------------------------------------------------------
10/31/99 22.14 28.35 0.15 1.45 35.51
--------------------------------------------------------------------------------
10/31/98 20.82 22.14 0.04 1.44 12.92
--------------------------------------------------------------------------------
10/31/97 16.30 20.82 0.02 0.62 32.59
--------------------------------------------------------------------------------
10/31/96 13.28 16.30 0.09 0.32 26.55
--------------------------------------------------------------------------------
10/31/95 10.65 13.28 0.02 0.10 26.18
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.65 0.00 0.00 6.50++
--------------------------------------------------------------------------------
Total $0.32 $3.93
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 5
<PAGE>
--------------------------------------------------------------------------------
Van Kampen Enterprise Portfolio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-------------------
Beginning End of Income Capital Gain Total
Period Ended of Period Period Dividends Distributions Returns+
================================================================================
4/30/00 $25.52 $31.36 $0.00 $0.00 22.88%++
--------------------------------------------------------------------------------
10/31/99 20.56 25.52 0.07 0.39 26.48
--------------------------------------------------------------------------------
10/31/98 19.89 20.56 0.05 1.17 8.97
--------------------------------------------------------------------------------
10/31/97 15.37 19.89 0.05 0.00 29.81
--------------------------------------------------------------------------------
10/31/96 12.89 15.37 0.04 0.40 23.35
--------------------------------------------------------------------------------
10/31/95 10.38 12.89 0.02 0.03 24.74
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.38 0.00 0.00 3.80++
================================================================================
Total $0.23 $1.99
================================================================================
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
Smith Barney Alliance
Large Cap Growth Van Kampen
Value Portfolio Portfolio Enterprise Portfolio
--------------------------------------------------------------------------------
Six Months Ended 4/30/00++ (1.21)% 15.10% 22.88%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (7.74) 22.28 26.26
Five Years Ended 4/30/00 14.93 28.18 25.77
6/16/94* through 4/30/00 14.38 26.45 23.83
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cumulative Total Returns+
--------------------------------------------------------------------------------
Smith Barney Alliance
Large Cap Growth Van Kampen
Value Portfolio Portfolio Enterprise Portfolio
================================================================================
6/16/94* through 4/30/00 120.20% 297.13% 251.15%
================================================================================
+ Assumes the reinvestment of all dividend and capital gain distributions, if
any, at net asset value.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Smith Barney Large Cap Value Portfolio vs. S&P 500 Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
Smith Barney Large
Cap Value Portfolio S&P 500 Index
6/16/94 10,000 10,000
Oct-94 10,140 10,324
Oct-95 12,189 13,053
Oct-96 15,182 16,018
Oct-97 18,731 21,159
Oct-98 20,539 25,817
Oct-99 22,290 32,442
4/30/00 22,020 34,771
+ Hypothetical illustration of $10,000 invested in shares of the Smith Barney
Large Cap Value Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Standard & Poor's 500 Index ("S&P 500
Index") is an index of widely held common stocks listed on the New York and
American Stock Exchanges and the over-the-counter markets. Figures for the
S&P 500 Index include reinvestment of dividends. The index is unmanaged and
is not subject to the same management and trading expenses of a mutual
fund. An investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost. No adjustment
has been made for shareholder tax liability on dividends or capital gains.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 7
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Alliance Growth Portfolio vs. S&P 500 Index+
and Russell 1000 Index
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
Alliance S&P 500 Index Russell 1000 Index
6/16/94 10,000 10,000 10,000
Oct-94 10,650 10,324 10,191
Oct-95 13,439 13,053 12,612
Oct-96 17,007 16,018 15,501
Oct-97 22,549 21,159 20,236
Oct-98 25,463 25,817 24,039
Oct-99 34,504 32,442 30,189
4/30/00 39,713 34,771 33,123
+ Hypothetical illustration of $10,000 invested in shares of the Alliance Growth
Portfolio on June 16, 1994 (commencement of operations), assuming reinvestment
of dividends and capital gains, if any, at net asset value through April 30,
2000. The Standard & Poor's 500 Index ("S&P 500 Index") is an index of widely
held common stocks listed on the New York and American Stock Exchanges and the
over-the-counter markets. Figures for the S&P 500 Index include reinvestment
of dividends. The Russell 1000 Index is comprised of 1,000 of the largest
capitalized U.S. domiciled companies whose common stock is traded on either
the New York, American or NASDAQ stock exchanges. The indexes are unmanaged
and are not subject to the same management and trading expenses of a mutual
fund. An investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and redemption
value may be more or less than the original cost. No adjustment has been made
for shareholder tax liability on dividends or capital gains.
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Van Kampen Enterprise Portfolio vs.
S&P 500 Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
Van Kampen Enterprise S&P 500 Index
6/16/94 10,000 10,000
Oct-94 10,380 10,324
Oct-95 12,948 13,053
Oct-96 15,972 16,018
Oct-97 20,733 21,159
Oct-98 22,592 25,817
Oct-99 28,576 32,442
4/30/00 35,115 34,771
+ Hypothetical illustration of $10,000 invested in shares of the Van Kampen
Enterprise Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Standard & Poor's 500 Index ("S&P 500
Index") is an index of widely held common stocks listed on the New York and
American Stock Exchanges and the over-the-counter markets. Figures for the
S&P 500 Index include reinvestment of dividends. The index is unmanaged and
is not subject to the same management and trading expenses of a mutual
fund. An investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost. No adjustment
has been made for shareholder tax liability on dividends or capital gains.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
COMMON STOCK -- 97.4%
Capital Goods -- 12.5%
215,000 Emerson Electric Co. $ 11,798,125
140,000 General Electric Co. 22,015,000
255,000 Honeywell Inc. 14,280,000
240,000 Pitney Bowes Inc. 9,810,000
290,000 Xerox Corp. 7,666,875
-------------------------------------------------------------------------------
65,570,000
-------------------------------------------------------------------------------
Consumer Cyclicals -- 3.8%
85,000 General Motors Corp. 7,958,125
525,000 Masco Corp. 11,779,687
-------------------------------------------------------------------------------
19,737,812
-------------------------------------------------------------------------------
Consumer Staples -- 8.2%
200,000 Avon Products, Inc. 8,300,000
250,000 Kimberly-Clark Corp. 14,515,625
158,000 The McGraw-Hill Cos., Inc. 8,295,000
325,000 PepsiCo, Inc. 11,923,438
-------------------------------------------------------------------------------
43,034,063
-------------------------------------------------------------------------------
Energy -- 19.9%
237,000 BP Amoco PLC, Sponsored ADR 12,087,000
110,000 Chevron Corp. 9,363,750
234,000 Conoco Inc., Class A Shares 5,572,125
307,968 Conoco Inc., Class B Shares 7,660,704
250,000 El Paso Energy Corp. 10,625,000
150,000 Enron Corp. 10,453,125
300,000 Exxon Mobil Corp. 23,306,250
210,025 Halliburton Co. 9,280,480
415,000 The Williams Cos., Inc. 15,484,688
-------------------------------------------------------------------------------
103,833,122
-------------------------------------------------------------------------------
Financial Services -- 12.3%
200,000 Bank of America Corp. 9,800,000
215,000 The Chase Manhattan Corp. 15,493,437
180,000 Marsh & McLennan Cos., Inc. 17,741,250
415,000 Mellon Financial Corp. 13,331,875
80,000 Merrill Lynch & Co., Inc. 8,155,000
-------------------------------------------------------------------------------
64,521,562
-------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Healthcare -- 8.3%
220,000 American Home Products Corp. $ 12,361,250
80,000 Baxter International Inc. 5,210,000
200,000 Bristol-Myers Squibb Co. 10,487,500
16,000 Edwards Lifesciences Corp.+ 240,000
26,100 Johnson & Johnson 2,153,250
255,850 Pharmacia Corp. 12,776,509
-------------------------------------------------------------------------------
43,228,509
-------------------------------------------------------------------------------
Insurance -- 5.4%
190,000 The Chubb Corp. 12,088,750
60,000 CIGNA Corp. 4,785,000
215,000 The Hartford Financial Services Group, Inc. 11,220,312
-------------------------------------------------------------------------------
28,094,062
-------------------------------------------------------------------------------
Raw and Intermediate Materials -- 6.7%
175,000 Alcoa Inc. 11,353,125
50,000 The Dow Chemical Co. 5,650,000
148,030 E.I. du Pont de Nemours & Co. 7,022,173
250,000 International Paper Co. 9,187,500
25,000 Reynolds Metals Co. 1,662,500
-------------------------------------------------------------------------------
34,875,298
-------------------------------------------------------------------------------
Technology -- 2.5%
213,000 United Technologies Corp. 13,245,938
-------------------------------------------------------------------------------
Telecommunications -- 12.2%
335,000 AT&T Corp. 15,640,312
150,000 ALLTEL Corp. 9,993,750
190,000 GTE Corp. 12,872,500
275,000 SBC Communications Inc. 12,048,438
220,000 Sprint Corp. 13,530,000
-------------------------------------------------------------------------------
64,085,000
-------------------------------------------------------------------------------
Transportation -- 1.4%
175,000 Union Pacific Corp. 7,371,875
-------------------------------------------------------------------------------
Utilities -- 4.2%
210,000 Duke Energy Corp. 12,075,000
245,000 Unicom Corp. 9,738,750
-------------------------------------------------------------------------------
21,813,750
-------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost-- $461,472,942) 509,410,991
===============================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
-------------------------------------------------------------------------------
SMITH BARNEY LARGE CAP VALUE PORTFOLIO
FACE
AMOUNT SECURITY VALUE
===============================================================================
REPURCHASE AGREEMENT -- 2.6%
$13,420,000 Goldman, Sachs & Co., 5.67% due 5/1/00;
Proceeds at maturity-- $13,426,341 (Fully
collateralized by U.S. Treasury Notes and Bonds,
6.25% to 11.125% due 10/31/01 to 2/15/21;
Market value-- $13,688,408) (Cost-- $13,420,000) $ 13,420,000
===============================================================================
TOTAL INVESTMENTS -- 100%
(Cost-- $474,892,942*) $522,830,991
===============================================================================
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
COMMON STOCK -- 95.3%
Aerospace -- 0.8%
40,000 General Motors Corp., Class H Shares+ $ 3,852,500
796,200 Loral Space & Communications Ltd.+ 7,812,712
-------------------------------------------------------------------------------
11,665,212
-------------------------------------------------------------------------------
Airlines -- 0.7%
264,300 Continental Airlines, Inc., Class B Shares+ 10,572,000
-------------------------------------------------------------------------------
Banks -- 4.2%
559,400 Bank of America Corp. 27,410,600
173,000 Bank One Corp. 5,276,500
412,900 The Bank of Tokyo-Mitsubishi, Ltd., ADR 5,341,894
334,208 The Chase Manhattan Corp. 24,083,864
-------------------------------------------------------------------------------
62,112,858
-------------------------------------------------------------------------------
Drugs -- 2.6%
284,000 Bristol-Myers Squibb Co. 14,892,250
208,800 Merck & Co., Inc. 14,511,600
204,000 Schering-Plough Corp. 8,223,750
-------------------------------------------------------------------------------
37,627,600
-------------------------------------------------------------------------------
Electronics -- 10.7%
94,000 Altera Corp.+ 9,611,500
156,000 Applied Materials, Inc.+ 15,882,750
281,000 Flextronics International Ltd.+ 19,740,250
154,000 Micron Technology, Inc. 21,444,500
699,800 Sanmina Corp.+ 42,031,738
597,200 SCI Systems, Inc.+ 31,800,900
335,600 Solectron Corp.+ 15,710,275
-------------------------------------------------------------------------------
156,221,913
-------------------------------------------------------------------------------
Energy -- 2.8%
67,000 Kerr-McGee Corp. 3,467,250
3,309,192 BP Amoco PLC 28,713,219
113,000 Total Fina S.A., Sponsored ADR 8,545,625
-------------------------------------------------------------------------------
40,726,094
-------------------------------------------------------------------------------
Financial Services -- 8.8%
1,352,100 Associates First Capital Corp., Class A Shares 29,999,719
2,095,188 The CIT Group, Inc., Class A Shares 35,487,247
326,100 Household International, Inc. 13,614,675
707,600 John Hancock Financial Services, Inc.+ 12,913,700
250,000 Koger Equity Inc. 4,375,000
1,049,762 MBNA Corp. 27,884,303
265,000 MetLife, Inc.+ 4,389,063
-------------------------------------------------------------------------------
128,663,707
-------------------------------------------------------------------------------
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Food Services, Lodging -- 0.1%
270,300 Humphrey Hospitality Trust, Inc. $ 1,858,313
-------------------------------------------------------------------------------
Hospital Supplies and Services -- 2.6%
498,000 Boston Scientific Corp.+ 13,197,000
77,000 Health Management Associates, Inc.+ 1,227,187
836,000 IMS Health Inc. 14,264,250
409,230 McKesson HBOC, Inc. 6,905,756
45,200 Medtronic, Inc. 2,347,575
-------------------------------------------------------------------------------
37,941,768
-------------------------------------------------------------------------------
Insurance -- 5.7%
317,700 Ace Ltd. 7,604,944
192,000 AFLAC Inc. 9,372,000
441,265 American International Group, Inc. 48,401,255
200,800 Providian Financial Corp. 17,682,950
-------------------------------------------------------------------------------
83,061,149
-------------------------------------------------------------------------------
Leisure Related -- 1.3%
787,215 Cendant Corp. 12,152,632
250,000 MGM Grand, Inc. ++ 6,625,000
-------------------------------------------------------------------------------
18,777,632
-------------------------------------------------------------------------------
Miscellaneous -- 1.5%
48,000 Honeywell International Inc. 2,688,000
421,796 Tyco International Ltd. 19,376,254
-------------------------------------------------------------------------------
22,064,254
-------------------------------------------------------------------------------
Printing, Publishing and Broadcasting -- 10.0%
306,400 Adelphia Communications Corp., Class A Shares+ 15,185,950
1,103,428 AT&T Corp. - Liberty Media Group, Class A Shares 55,102,436
183,800 CBS Corp.+ 10,798,250
141,000 Fox Entertainment Group, Class A Shares+ 3,630,750
52,000 Gannett Co., Inc. 3,321,500
540,500 MediaOne Group, Inc.+ 40,875,312
189,400 The News Corp. Ltd., Sponsored ADR 9,742,262
130,400 UnitedGlobalCom Inc.+ 6,927,500
-------------------------------------------------------------------------------
145,583,960
-------------------------------------------------------------------------------
Railroads -- 0.5%
306,700 Burlington Northern Santa Fe Corp. 7,399,137
-------------------------------------------------------------------------------
Real Estate -- 0.9%
140,000 Entertainment Properties Trust 1,907,500
443,700 JP Realty, Inc. 7,958,869
121,900 The Macerich Co. 2,826,556
-------------------------------------------------------------------------------
12,692,925
-------------------------------------------------------------------------------
See Notes to Financial Statements.
-------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30, 2000
-------------------------------------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Retail -- 4.3%
100,000 Circuit City Stores - Circuit City Group $ 5,881,250
308,550 The Home Depot, Inc. 17,298,084
539,000 The Kroger Co. 10,005,187
216,850 The Limited, Inc. 9,798,909
100,000 Safeway Inc.+ 4,412,500
280,000 Tandy Corp. 15,960,000
1 Too Inc.+ 30
-------------------------------------------------------------------------------
63,355,960
-------------------------------------------------------------------------------
Technology -- 7.7%
1,603,900 Ceridian Corp. 34,784,581
150,000 Compaq Computer Corp. 4,387,500
596,865 Computer Associates International, Inc. 33,312,581
357,000 International Business Machines Corp. 39,850,125
-------------------------------------------------------------------------------
112,334,787
-------------------------------------------------------------------------------
Telecommunications -- 22.8%
1,004,900 AT&T Wireless Group 31,968,381
13,200 COLT Telecom Group PLC, Sponsored ADR+ 2,253,900
140,800 Energis PLC+ 6,984,258
70,000 Equant NV, NY Registered Shares+ 5,460,000
124,800 FLAG Telecom Holdings Ltd.+ 2,433,600
747,504 Global TeleSystems Group, Inc.+ 10,885,527
173,800 Millicom International Cellular SA+ 9,298,300
655,700 Nextel Communications, Inc., Class A Shares+ 71,758,169
156,000 Nokia Oyj, Sponsored ADR 8,872,500
424,063 NTL Inc.+ 32,440,820
90,000 Qwest Communications International Inc.+ 3,903,750
1 Reuters Group PLC, Sponsored ADR 104
73,000 Western Wireless Corp., Class A Shares+ 3,627,188
832,425 WorldCom, Inc.+ 37,823,311
21,598,732 Vodafone AirTouch PLC 99,196,134
59,400 VoiceStream Wireless Corp.+ 5,880,600
-------------------------------------------------------------------------------
332,786,542
-------------------------------------------------------------------------------
Utilities - Telephone -- 7.3%
99,000 ALLTEL Corp. 6,595,875
228,000 AT&T Corp. 10,644,750
99,000 Bell Atlantic Corp. 5,865,750
348,000 Cable & Wireless PLC 5,799,455
734,000 Sprint Corp. 45,141,000
450,000 US WEST, Inc. 32,034,375
-------------------------------------------------------------------------------
106,081,205
-------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $1,036,299,569) 1,391,527,016
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
CONVERTIBLE PREFERRED STOCK -- 0.2%
Financial Services -- 0.0%
28,400 Automatic Common Exchange Security Trust II,
$1.55 Trust Automatic Common Exchange Securities $ 257,375
-------------------------------------------------------------------------------
Printing, Publishing and Broadcasting -- 0.2%
12,100 Adelphia Communications Corp.,
5.50% Cumulative, Series D 1,860,375
-------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost-- $3,117,592) 2,117,750
===============================================================================
FACE
AMOUNT SECURITY VALUE
===============================================================================
CONVERTIBLE BOND -- 0.5%
$11,165,000 Global TeleSystems Group, Inc., Sr. Sub. Debentures,
5.75% due 7/1/10 (Cost -- $9,616,989) 7,410,769
===============================================================================
SHORT-TERM INVESTMENT -- 4.0%
58,800,000 Federal Home Loan Bank Corp., 5.88% due 5/1/00
(Cost -- $58,780,792) 58,780,792
===============================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $1,107,814,942*) $1,459,836,327
===============================================================================
+ Non-income producing security.
++ Security is valued by the Fund's Board of Directors (See Note 7). *
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
-------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 200
-------------------------------------------------------------------------------
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
COMMON STOCK -- 98.5%
Automotive -- 0.9%
87,400 Harley-Davidson, Inc. $ 3,479,612
-------------------------------------------------------------------------------
Biotechnology -- 1.4%
16,200 Amgen Inc. 907,200
83,000 Pharmacia Corp. 4,144,813
-------------------------------------------------------------------------------
5,052,013
-------------------------------------------------------------------------------
Electronic Components - Semiconductors -- 18.2%
17,000 Advanced Micro Devices, Inc.+ 1,491,750
46,100 Altera Corp.+ 4,713,725
45,400 Analog Devices, Inc.+ 3,487,287
47,600 Applied Materials, Inc.+ 4,846,275
29,000 Atmel Corp.+ 1,419,187
10,000 Broadcom Corp., Class A Shares+ 1,723,750
150,600 Intel Corp. 19,097,962
14,000 KLA - Tencor Corp.+ 1,048,250
61,000 LSI Logic Corp.+ 3,812,500
32,700 Micron Technology, Inc. 4,553,475
17,000 National Semiconductor Corp.+ 1,032,750
46,800 Sanmina Corp.+ 2,810,925
18,600 STMicroelectonics N.V. 3,528,188
28,000 Teradyne, Inc.+ 3,080,000
43,400 Texas Instruments Inc. 7,068,775
57,800 Xilinx, Inc.+ 4,233,850
-------------------------------------------------------------------------------
67,948,649
-------------------------------------------------------------------------------
Energy -- 5.1%
38,000 Baker Hughes Inc. 1,208,875
44,000 BJ Services Co.+ 3,091,000
89,000 ENSCO International Inc. 2,953,687
37,000 Nabors Industries, Inc.+ 1,459,188
95,400 Noble Drilling Corp.+ 3,810,038
49,000 Schlumberger Ltd. 3,751,563
36,000 Smith International, Inc.+ 2,736,000
-------------------------------------------------------------------------------
19,010,351
-------------------------------------------------------------------------------
Financial Services -- 7.3%
17,500 American Express Co. 2,626,094
32,300 Bank of America Corp. 1,582,700
26,000 Capital One Financial Corp. 1,137,500
21,900 The Chase Manhattan Corp. 1,578,169
23,700 Fannie Mae 1,429,406
26,000 Fifth Third Bancorp. 1,641,250
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Financial Services -- 7.3% (continued)
80,000 Firstar Corp. $ 1,990,000
45,800 FleetBoston Financial Corp. 1,623,037
26,000 Franklin Resources, Inc. 838,500
28,000 Freddie Mac 1,286,250
22,700 Lehman Brothers Holdings Inc. 1,862,819
41,000 MBNA Corp. 1,089,063
6,000 Merrill Lynch & Co., Inc. 611,625
23,100 MGIC Investment Corp. 1,104,469
13,000 Northern Trust Corp. 833,625
21,000 T. Rowe Price Associates, Inc. 800,625
8,000 Providian Financial Corp. 704,500
39,100 The Charles Schwab Corp. 1,739,950
34,000 SLM Holding Corp. 1,064,625
38,500 Wells Fargo Co. 1,580,906
-------------------------------------------------------------------------------
27,125,113
-------------------------------------------------------------------------------
Food and Beverage -- 1.4%
19,600 Anheuser-Busch Cos., Inc. 1,383,025
113,000 The Pepsi Bottling Group, Inc. 2,436,563
19,000 The Quaker Oats Co. 1,238,563
-------------------------------------------------------------------------------
5,058,151
-------------------------------------------------------------------------------
Healthcare -- 3.7%
51,800 Bristol-Myers Squibb Co. 2,716,262
57,500 Guidant Corp.+ 3,299,062
6,000 MedImunne, Inc.+ 959,625
28,000 United HealthCare Corp. 1,867,250
32,000 Warner-Lambert Co. 3,642,000
16,700 Wellpoint Health Networks Inc.+ 1,231,625
-------------------------------------------------------------------------------
13,715,824
-------------------------------------------------------------------------------
Hotel/Casino -- 0.9%
39,200 MGM Grand, Inc. 1,156,400
77,300 Park Place Entertainment Corp.+ 990,406
48,000 Starwood Hotels & Resorts Worldwide, Inc. 1,365,000
-------------------------------------------------------------------------------
3,511,806
-------------------------------------------------------------------------------
Instruments -- 1.3%
18,000 Johnson Controls, Inc. 1,139,625
28,800 PE Corp. - PE Biosystems Group 1,728,000
20,600 Waters Corp.+ 1,951,850
-------------------------------------------------------------------------------
4,819,475
-------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Insurance -- 1.0%
13,000 American General Corp. $ 728,000
28,750 American International Group, Inc. 3,153,516
-------------------------------------------------------------------------------
3,881,516
-------------------------------------------------------------------------------
Manufacturing -- 4.5%
16,500 Corning Inc. 3,258,750
85,900 General Electric Co. 13,507,775
-------------------------------------------------------------------------------
16,766,525
-------------------------------------------------------------------------------
Media -- 4.8%
30,700 CBS Corp. 1,803,625
21,000 Hispanic Broadcasting Corp.+ 2,122,312
76,663 Metro-Goldwyn-Mayer Inc.+ 2,299,890
35,200 Omnicom Group Inc. 3,205,400
27,000 The Walt Disney Co. 1,169,437
42,200 Time Warner Inc. 3,795,363
32,300 Univision Communications Inc., Class A Shares+ 3,528,775
-------------------------------------------------------------------------------
17,924,802
-------------------------------------------------------------------------------
Multi - Industry -- 1.3%
49,600 The Seagram Co. Ltd. 2,678,400
44,000 Tyco International Ltd. 2,021,250
-------------------------------------------------------------------------------
4,699,650
-------------------------------------------------------------------------------
Pharmaceuticals -- 4.0%
40,600 American Home Products Corp. 2,281,212
61,000 Merck & Co., Inc. 4,239,500
138,600 Pfizer Inc. 5,838,525
61,000 Schering-Plough Corp. 2,459,063
-------------------------------------------------------------------------------
14,818,300
-------------------------------------------------------------------------------
Publishing -- 0.4%
37,000 New York Times Co., Class A Shares 1,523,938
-------------------------------------------------------------------------------
Retail -- 6.4%
17,000 Best Buy Co., Inc. 1,372,750
43,400 Costco Wholesale Corp.+ 2,346,312
58,000 Kohl's Corp.+ 2,784,000
50,000 Outback Steakhouse, Inc.+ 1,637,500
73,000 Safeway Inc. 3,221,125
50,000 Starbucks Corp.+ 1,511,719
42,100 Target Corp. 2,802,281
96,850 The Home Depot, Inc. 5,429,653
50,100 Wal-Mart Stores, Inc. 2,774,288
-------------------------------------------------------------------------------
23,879,628
-------------------------------------------------------------------------------
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Technology -- 15.3%
18,400 Adobe Systems Inc. $ 2,225,250
87,800 America Online, Inc.+ 5,251,537
15,500 Apple Computer, Inc.+ 1,922,969
14,000 BEA Systems, Inc.+ 675,500
16,800 Citrix Systems, Inc.+ 1,025,850
81,000 Dell Computer Corp.+ 4,060,125
66,600 EMC Corp.+ 9,253,237
9,000 Inktomi Corp.+ 1,385,437
12,000 Lexmark International Group, Inc., Class A Shares+ 1,416,000
28,800 Linear Technology Corp. 1,645,200
97,800 Microsoft Corp.+ 6,821,550
146,600 Oracle Corp.+ 11,718,838
57,400 Sun Microsystems, Inc.+ 5,277,213
32,300 Tandy Corp. 1,841,100
13,950 VERITAS Software Corp.+ 1,496,355
6,600 Yahoo! Inc.+ 859,650
-------------------------------------------------------------------------------
56,875,811
-------------------------------------------------------------------------------
Telecommunications -- 18.9%
42,000 ADC Telecommunications, Inc.+ 2,551,500
30,000 Bell Atlantic Corp. 1,777,500
284,600 Cisco Systems, Inc.+ 19,730,784
58,100 Comverse Technology, Inc.+ 5,181,794
23,300 First Data Corp. 1,134,419
65,200 JDS Uniphase Corp.+ 6,760,425
36,455 Lucent Technologies, Inc. 2,267,045
75,000 McLeodUSA Inc., Class A Shares+ 1,875,000
13,242 Motorola, Inc. 1,576,626
15,300 Nextel Communications, Inc., Class A Shares 1,674,394
17,000 NEXTLINK Communications, Inc., Class A Shares+ 1,433,313
154,600 Nokia Oyj, Sponsored ADR 8,792,875
40,300 Nortel Networks Corp. 4,563,975
28,800 QUALCOMM, Inc.+ 3,123,000
46,000 SBC Communications Inc. 2,015,375
16,000 Scientific-Atlanta, Inc. 1,041,000
31,000 Sprint Corp. 1,906,500
17,000 Telefonaktiebolaget LM Ericsson AB - Sponsored ADR 1,503,437
36,000 Vodafone AirTouch PLC - Sponsored ADR 1,692,000
-------------------------------------------------------------------------------
70,600,962
-------------------------------------------------------------------------------
Textiles/Apparel -- 0.9%
74,200 Jones Apparel Group, Inc. 2,202,812
23,000 NIKE, Inc., Class B Shares 999,063
-------------------------------------------------------------------------------
3,201,875
-------------------------------------------------------------------------------
See Notes to Financial Statements.
-------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
-------------------------------------------------------------------------------
VAN KAMPEN ENTERPRISE PORTFOLIO
SHARES SECURITY VALUE
===============================================================================
Transportation -- 0.2%
10,000 Kansas City Southern Industries, Inc. $ 718,750
-------------------------------------------------------------------------------
Utilities -- 0.6%
27,100 The AES Corp. 2,437,306
-------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $251,859,947) 367,050,057
===============================================================================
FACE
AMOUNT SECURITY VALUE
===============================================================================
SHORT-TERM INVESTMENTS-- 1.5%
U.S. Treasury Bills:
$3,000,000 5.51% due 6/8/00 2,981,633
1,300,000 5.63% due 7/20/00 1,283,789
1,400,000 5.63% due 7/20/00 1,380,904
===============================================================================
TOTAL SHORT-TERM INVESTMENTS
(Cost -- $5,645,600) 5,646,326
===============================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $257,505,547*) $372,696,383
===============================================================================
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
-------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
-------------------------------------------------------------------------------
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
Portfolio Portfolio Portfolio
-------------------------------------------------------------------------------
ASSETS:
Investments, at value
(Cost -- $474,892,942,
$1,107,814,942 and
$257,505,547, respectively) $522,830,991 $1,459,836,327 $372,696,383
Cash 466 8,951 --
Receivable for securities sold -- 991,312 1,952,072
Dividends and interest receivable 684,845 1,003,288 62,888
-------------------------------------------------------------------------------
Total Assets 523,516,302 1,461,839,878 374,711,343
-------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 4,978,766 47,441,061 --
Management fees payable 275,464 852,870 381,243
Payable to bank -- -- 8,008
Accrued expenses 63,829 48,451 30,661
-------------------------------------------------------------------------------
Total Liabilities 5,318,059 48,342,382 419,912
-------------------------------------------------------------------------------
Total Net Assets $518,198,243 $1,413,497,496 $374,291,431
===============================================================================
NET ASSETS:
Par value of shares of
capital stock $ 265 $ 433 $ 119
Capital paid in excess
of par value 443,563,561 826,429,416 187,409,513
Undistributed (overdistributed)
net investment income 10,569,924 2,915,277 (293,033)
Accumulated net realized gain
from security transactions 16,126,444 232,072,338 71,983,996
Net unrealized appreciation
of investments and
foreign currencies 47,938,049 352,080,032 115,190,836
-------------------------------------------------------------------------------
Total Net Assets $518,198,243 $1,413,497,496 $374,291,431
===============================================================================
Shares Outstanding 26,453,704 43,324,200 11,934,439
-------------------------------------------------------------------------------
Net Asset Value $19.59 $32.63 $31.36
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Statements of Operations (unaudited)
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
Portfolio Portfolio Portfolio
===============================================================================
INVESTMENT INCOME:
Dividends $ 5,329,630 $ 4,538,361 $ 764,602
Interest 203,427 2,303,633 241,009
Less: Foreign withholding tax (7,524) (29,152) (12,160)
-------------------------------------------------------------------------------
Total Investment Income 5,525,533 6,812,842 993,451
-------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,674,876 5,343,268 1,252,526
Audit and legal 16,008 16,383 13,861
Custody 11,149 39,184 11,444
Shareholder communications 9,636 19,059 6,871
Shareholder and system servicing
fees 8,124 8,085 8,145
Directors' fees 6,800 13,157 4,624
Registration fees 196 561 522
Other 4,301 6,986 4,278
-------------------------------------------------------------------------------
Total Expenses 1,731,090 5,446,683 1,302,271
-------------------------------------------------------------------------------
Net Investment Income (Loss) 3,794,443 1,366,159 (308,820)
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES
(NOTE 3):
Realized Gain From Security
Transactions (excluding
short-term securities):
Proceeds from sales 50,750,824 355,999,927 185,085,825
Cost of securities sold 46,801,479 228,200,113 156,907,685
-------------------------------------------------------------------------------
Net Realized Gain 3,949,345 127,799,814 28,178,140
-------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation of Investments
and Foreign Currencies:
Beginning of period 63,063,920 303,989,265 72,053,654
End of period 47,938,049 352,080,032 115,190,836
-------------------------------------------------------------------------------
Increase (Decrease) in
Net Unrealized Appreciation (15,125,871) 48,090,767 43,137,182
-------------------------------------------------------------------------------
Net Gain (Loss) on Investments
and Foreign Currencies (11,176,526) 175,890,581 71,315,322
-------------------------------------------------------------------------------
Increase (Decrease) in
Net Assets From Operations $ (7,382,083) $177,256,740 $71,006,502
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
-------------------------------------------------------------------------------
Statements of Changes in Net Assets
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
Smith Barney Large Cap Value Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income $ 3,794,443 $ 6,779,539
Net realized gain 3,949,345 12,213,368
Increase (decrease) in
net unrealized appreciation (15,125,871) 15,571,021
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations (7,382,083) 34,563,928
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (6,005,632)
Net realized gains -- (12,877,750)
-------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (18,883,382)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 18,568,693 103,656,845
Net asset value of shares issued
for reinvestment of dividends -- 18,883,382
Cost of shares reacquired (36,668,213) (18,111,176)
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (18,099,520) 104,429,051
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (25,481,603) 120,109,597
NET ASSETS:
Beginning of period 543,679,846 423,570,249
-------------------------------------------------------------------------------
End of period* $518,198,243 $543,679,846
===============================================================================
* Includes undistributed
net investment income of: $10,569,924 $6,775,481
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
Alliance Growth Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income $ 1,366,159 $ 1,399,754
Net realized gain 127,799,814 104,629,375
Increase in net unrealized appreciation 48,090,767 180,413,425
-------------------------------------------------------------------------------
Increase in Net Assets From Operations 177,256,740 286,442,554
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (5,587,187)
Net realized gains -- (54,556,034)
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (60,143,221)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 87,799,621 134,587,353
Net asset value of shares issued
for reinvestment of dividends -- 60,143,221
Cost of shares reacquired (17,472,804) (30,058,605)
-------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 70,326,817 164,671,969
-------------------------------------------------------------------------------
Increase in Net Assets 247,583,557 390,971,302
NET ASSETS:
Beginning of period 1,165,913,939 774,942,637
-------------------------------------------------------------------------------
End of period* $1,413,497,496 $1,165,913,939
===============================================================================
* Includes undistributed net investment income of: $2,915,277 $1,549,118
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
Travelers Series Fund Inc. 25
<PAGE>
-------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
Van Kampen Enterprise Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income (loss) $ (308,820) $ 15,877
Net realized gain 28,178,140 44,456,119
Increase in net unrealized appreciation 43,137,182 22,046,033
-------------------------------------------------------------------------------
Increase in Net Assets From Operations 71,006,502 66,518,029
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (845,726)
Net realized gains -- (4,790,402)
-------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (5,636,128)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares 5,833,677 20,092,068
Net asset value of shares issued
for reinvestment of dividends -- 5,636,128
Cost of shares reacquired (15,958,254) (22,251,170)
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (10,124,577) 3,477,026
-------------------------------------------------------------------------------
Increase in Net Assets 60,881,925 64,358,927
NET ASSETS:
Beginning of period 313,409,506 249,050,579
-------------------------------------------------------------------------------
End of period* $374,291,431 $313,409,506
===============================================================================
* Includes undistributed (overdistributed)
net investment income of: $(293,033) $15,787
===============================================================================
See Notes to Financial Statements.
-------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Smith Barney Large Cap Value Portfolio, Alliance Growth Portfolio and Van
Kampen Enterprise Portfolio, ("Portfolio(s)") are separate investment portfolios
of the Travelers Series Fund Inc. ("Fund"). The Fund, a Maryland corporation, is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company and consists of these Portfolios and twelve other
separate investment portfolios: AIM Capital Appreciation, Smith Barney
International Equity, Smith Barney Pacific Basin, Travelers Managed Income,
Putnam Diversified Income, INVESCO Global Strategic Income, Smith Barney High
Income, MFS Total Return, Smith Barney Money Market, Smith Barney Large
Capitalization Growth, Smith Barney Aggressive Growth and Smith Barney Mid Cap
Portfolios. Shares of the Fund are offered only to insurance company separate
accounts which fund certain variable annuity and variable life insurance
contracts. The financial statements and financial highlights for the other
portfolios are presented in separate shareholder reports.
The significant accounting policies consistently followed by the Portfolios are:
(a) security transactions are accounted for on trade date; (b) securities traded
on national securities markets are valued at the closing prices on such markets;
securities for which no sales price was reported and U.S. government agencies
and obligations are valued at the mean between bid and ask prices; (c)
securities for which market quotations are not available will be valued in good
faith at fair value by or under the direction of the Board of Directors; (d)
securities maturing within 60 days are valued at cost plus accreted discount, or
minus amortized premium, which approximates value; (e) dividend income is
recorded on the ex-dividend date; foreign dividends are recorded on the
ex-dividend date or as soon as practical after the Portfolios determine the
existence of a dividend declaration after exercising reasonable due diligence;
(f) interest income is recorded on an accrual basis; (g) dividends and
distributions to shareholders are recorded on the ex-dividend date; (h) gains or
losses on the sale of securities are calculated by using the specific
identification method; (i) the accounting records of the Portfolios are
maintained in U.S. dollars. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of securities, and income and expenses are translated at the rate of
exchange quoted on the respective date that such transactions are recorded.
Differences between income or expense amounts recorded and collected or paid are
adjusted when reported by the custodian bank; (j) the character of income and
gains to be distributed are determined in
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
accordance with income tax regulations which may differ from generally accepted
accounting principles. At October 31, 1999, reclassifications were made to the
capital accounts of the Smith Barney Large Cap Value Portfolio and the Alliance
Growth Portfolio to reflect permanent book/tax differences and income and gains
available for distributions under income tax regulations. Accordingly, for the
Smith Barney Large Cap Value Portfolio, a portion of undistributed net
investment income and accumulated net realized gains amounting to $530 and $745,
respectively, has been reclassified to paid-in capital. Net investment income,
net realized gains and net assets were not affected by this change; (k) the
Portfolios intend to comply with the requirements of the Internal Revenue Code
of 1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise taxes; and (l) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH") which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as the investment manager of the Smith Barney Large Cap
Value Portfolio ("SBLCV"). In addition, SBLCV pays SSBC a management fee
calculated at an annual rate of 0.65% of the average daily net assets of the
Portfolio. Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SSBC,
acts as the investment manager of the Alliance Growth ("AGP") and the Van Kampen
Enterprise ("VKEP") Portfolios. AGP and VKEP pay TIA a management fee calculated
at an annual rate of 0.80% and 0.70%, respectively, of the average daily net
assets of each Portfolio. These fees are calculated daily and paid monthly.
TIA has entered into sub-advisory agreements with Alliance Capital Management
L.P. ("Alliance Capital") and Van Kampen Asset Management, Inc. ("VKAM").
Pursuant to each sub-advisory agreement, Alliance Capital and VKAM are
responsible for the day-to-day portfolio operations and investment decisions and
are compensated by TIA for such services at an annual rate of 0.375% and 0.325%
of the average daily net assets of AGP and VKEP, respectively. These fees are
calculated daily and paid monthly.
TIA has entered into a sub-administrative services agreement with SSBC. TIA pays
SSBC, as sub-administrator, a fee calculated at an annual rate of 0.10% of the
average daily net assets of AGP and VKEP.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Citi Fiduciary Trust Company ("CFTC"), formerly known as Smith Barney Private
Trust Company, another subsidiary of Citigroup, acts as the Fund's transfer
agent and PFPC Global Fund Services ("PFPC") acts as the sub-transfer agent.
CFTC receives account fees and asset-based fees that vary according to the
account size and type of account. PFPC is responsible for shareholder
recordkeeping and financial processing for all shareholder accounts and is paid
by CFTC. For the six months ended April 30, 2000, the Portfolios paid transfer
agent fees of $7,500 to CFTC.
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions. For the six months ended
April 30, 2000, SSB received brokerage commissions of $98,047.
All officers and one director of the Fund are employees of SSB.
3. Investments
During the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were:
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
================================================================================
Purchases $50,926,024 $429,609,067 $191,281,974
--------------------------------------------------------------------------------
Sales 50,750,824 355,999,927 185,085,825
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
Smith Barney
Large Cap Alliance Van Kampen
Value Growth Enterprise
================================================================================
Gross unrealized appreciation $78,982,544 $452,650,509 $122,957,901
Gross unrealized depreciation (31,044,495) (100,629,124) (7,767,065)
--------------------------------------------------------------------------------
Net unrealized appreciation $47,938,049 $352,021,385 $115,190,836
================================================================================
4. Repurchase Agreements
The Portfolios purchase (and their custodian takes possession of) U.S.
government securities from banks and securities dealers subject to agreements to
resell the securities to the sellers at a future date (generally, the next
business day) at an agreed-upon higher repurchase price. The Portfolios require
continual maintenance of the market value of the collateral in amounts at least
equal to the repurchase price.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 29
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
5. Futures Contracts
Initial margin deposits made upon entering into futures contracts are recognized
as assets. Securities equal to the initial margin amount are segregated by the
custodian in the name of the broker. Additional securities are also segregated
up to the current market value of the futures contract. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's trading. Variation
margin payments are received or made and recognized as assets due from or
liabilities due to broker, depending upon whether unrealized gains or losses are
incurred.
When the contract is closed, the Portfolios record a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolios' basis in the contract.
Only AGP and VKEP may enter into such contracts to hedge a portion of their
portfolios. The Portfolios bear the market risk that arises from changes in the
value of the financial instruments and securities indices (futures contracts).
At April 30, 2000, AGP and VKEP had no open futures contracts.
6. Options Contracts
AGP and VKEP may purchase put or call options. Premiums paid when put or call
options are purchased represent investments, which are marked-to-market daily
and are included in the schedule of investments. When a purchased option
expires, a loss will be realized in the amount of the premium paid. When a
closing sales transaction is entered into, a gain or loss will be realized
depending on whether the proceeds from the closing sales transaction are greater
or less than the premium paid for the option. When a put option is exercised, a
gain or loss will be realized from the sale of the underlying security and the
proceeds from such sale decreased by the premium originally paid. When a call
option is exercised, the cost of the security purchased upon exercise will be
increased by the premium originally paid.
At April 30, 2000, AGP and VKEP had no open purchased put or call option
contracts.
When AGP and VKEP write a covered call or put option, an amount equal to the
premium received is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, a gain equal to the
amount of the premium received is realized. When a closing purchase transaction
is entered into, a gain or
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
loss is realized depending upon whether the cost of the closing transaction is
greater or less than the premium originally received, without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is eliminated. When a written call option is exercised, the cost of
the security sold will be decreased by the premium originally received. When a
written put option is exercised, the amount of the premium originally received
will reduce the cost of the security purchased upon exercise. When written index
options are exercised, settlement is made in cash.
The risk associated with purchasing options is limited to the premium originally
paid. The Portfolios enter into options for hedging purposes. The risk in
writing a covered call option is that the Portfolios give up the opportunity to
participate in any increase in the price of the underlying security beyond the
exercise price. The risk in writing a put option is that the Portfolios are
exposed to the risk of a loss if the market price of the underlying security
declines.
During the six months ended April 30, 2000, AGP and VKEP did not write any
options.
7. Securities Valued by the Fund's Board of Directors
The following securities held by AGP on April 30, 2000, are illiquid and valued
at fair value in good faith by, or under the direction of the Fund's Board of
Directors taking into consideration the appropriate economic, financial and
other pertaining to these securities.
Value Percentage
Acquisition Per Fair of Total
Security Date Shares Share Value Net Assets Cost
================================================================================
MGM Grand, Inc. 4/14/00 250,000 $26.50 $6,625,000 0.47% $6,625,000
================================================================================
8. Lending of Portfolio Securities
SBLCV and AGP have an agreement with their custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities or high quality money market instruments that
are maintained at all times in an amount at least equal to the current market
value of the loaned securities, plus a margin depending on the type of
securities loaned. The custodian establishes and maintains the collateral in
segregated accounts. The Portfolios maintain exposure for the risk of any losses
in the investment of amounts received as collateral.
At April 30, 2000, there were no securities on loan.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 31
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
9. Capital Shares
At April 30, 2000, the Fund had six billion shares authorized with a par value
of $0.00001 per share. Each share of a Portfolio represents an equal
proportionate interest in that Portfolio with each other share of the same
Portfolio and has an equal entitlement to any dividends and distributions made
by the Portfolio.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
================================================================================
Smith Barney Large Cap Value
Shares sold 960,129 5,029,254
Shares issued on reinvestment -- 909,604
Shares reacquired (1,930,317) (882,294)
--------------------------------------------------------------------------------
Net Increase (Decrease) (970,188) 5,056,564
================================================================================
Alliance Growth
Shares sold 2,749,821 5,046,095
Shares issued on reinvestment -- 2,193,407
Shares reacquired (552,228) (1,109,900)
--------------------------------------------------------------------------------
Net Increase 2,197,593 6,129,602
================================================================================
Van Kampen Enterprise
Shares sold 198,113 844,070
Shares issued on reinvestment -- 232,706
Shares reacquired (543,328) (912,198)
--------------------------------------------------------------------------------
Net Increase (Decrease) (345,215) 164,578
================================================================================
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney Large Cap
Value Portfolio 2000(1) 1999(2) 1998(2) 1997 1996 1995
================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $19.83 $18.94 $17.90 $14.84 $12.12 $10.14
----------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.15 0.27 0.31 0.25 0.32 0.28
Net realized and unrealized
gain (loss) (0.39) 1.38 1.47 3.16 2.62 1.76
----------------------------------------------------------------------------------------------------------------
Total Income (Loss) From
Operations (0.24) 1.65 1.78 3.41 2.94 2.04
----------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.24) (0.21) (0.18) (0.17) (0.06)
Net realized gains -- (0.52) (0.53) (0.17) (0.05) --
----------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.76) (0.74) (0.35) (0.22) (0.06)
----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $19.59 $19.83 $18.94 $17.90 $14.84 $12.12
----------------------------------------------------------------------------------------------------------------
Total Return (1.21)%++ 8.52% 9.65% 23.38% 24.55% 20.21%
----------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $518 $544 $424 $287 $139 $39
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 0.67%+ 0.67% 0.68% 0.69% 0.73% 0.73%
Net investment income 1.47+ 1.35 1.59 2.01 2.35 2.70
----------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 10% 43% 36% 46% 32% 38%
================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager has waived all or part of its fees for the year ended
October 31, 1995. If such fees were not waived, the per share decreases in
net investment income and the ratios of expenses to average net assets would
have been as follows:
Expense Ratios
Per Share Decreases Without Fee Waivers
in Net Investment Income and Reimbursement
--------------------------- --------------------
1995 $0.02 0.94%
++ Total return is not annualized, as the result may not be representative of
the total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 33
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Alliance Growth Portfolio 2000(1) 1999 1998 1997 1996 1995
================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $28.35 $22.14 $20.82 $16.30 $13.28 $10.65
----------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income(2) 0.03 0.02 0.11 0.05 0.04 0.14
Net realized and unrealized gain 4.25 7.79 2.69 5.11 3.39 2.61
---------------------------------------------------------------------------------------------------------------
Total Income From Operations 4.28 7.81 2.80 5.16 3.43 2.75
---------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.15) (0.04) (0.02) (0.09) (0.02)
Net realized gains -- (1.45) (1.44) (0.62) (0.32) (0.10)
---------------------------------------------------------------------------------------------------------------
Total Distributions -- (1.60) (1.48) (0.64) (0.41) (0.12)
---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $32.63 $28.35 $22.14 $20.82 $16.30 $13.28
---------------------------------------------------------------------------------------------------------------
Total Return 15.10%++ 35.51% 12.92% 32.59% 26.55% 26.18%
---------------------------------------------------------------------------------------------------------------
Net Assets, End of
Period (millions) $1,413 $1,166 $775 $545 $295 $112
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.81%+ 0.82% 0.82% 0.82% 0.87% 0.90%
Net investment income 0.20+ 0.14 0.59 0.32 0.39 1.24
---------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 28% 54% 40% 66% 88% 78%
===============================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) The Manager has waived a portion of its fees for the year ended October 31,
1995. If such fees were not waived, the per share decreases in net
investment income and the ratios of expenses to average net assets would
have been as follows:
Expense Ratios
Per Share Decreases Without Fee Waivers
in Net Investment Income and Reimbursement
------------------------ -------------------
1995 $0.01 0.97%
++ Total return is not annualized, as the result may not be representative of
the total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Van Kampen
Enterprise Portfolio 2000(1) 1999 1998 1997 1996 1995
================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $25.52 $20.56 $19.89 $15.37 $12.89 $10.38
----------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (loss)(2) (0.03) 0.00* 0.06 0.06 0.05 0.03
Net realized and unrealized gain 5.87 5.42 1.83 4.51 2.87 2.53
----------------------------------------------------------------------------------------------------------------
Total Income From Operations 5.84 5.42 1.89 4.57 2.92 2.56
----------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.07) (0.05) (0.05) (0.04) (0.02)
Net realized gains -- (0.39) (1.17) -- (0.40) (0.03)
----------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.46) (1.22) (0.05) (0.44) (0.05)
----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $31.36 $25.52 $20.56 $19.89 $15.37 $12.89
----------------------------------------------------------------------------------------------------------------
Total Return 22.88%++ 26.48% 8.97% 29.81% 23.35% 24.74%
----------------------------------------------------------------------------------------------------------------
Net Assets, End of
Period (000s) $374,291 $313,410 $249,051 $196,583 $103,691 $32,447
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.73%+ 0.73% 0.73% 0.74% 0.83% 0.88%
Net investment income (loss) (0.17)+ 0.01 0.35 0.41 0.53 0.65
----------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 53% 120% 68% 75% 112% 180%
================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) The Manager has waived all or part of its fees for the year ended October
31, 1995. If such fees were not waived, the per share decreases in net
investment income and the ratios of expenses to average net assets would
have been as follows:
Expense Ratios
Per Share Decreases Without Fee Waivers
to Net Investment Income and Reimbursement
------------------------ -------------------
1995 $0.06 1.26%
* Amount represents less than $0.01 per share.
++ Total return is not annualized, as the result may not be representative of
the total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 35
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors
Victor K. Atkins
A.E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President and
Treasurer
Ellen Cardozo Sonsino
Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Managers
SSB Citi Fund Management LLC
Travelers Investment Adviser, Inc.
Custodian
PFPC Trust Company
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, CT 06183
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- Smith Barney Large Cap Value Portfolio, Alliance
Growth Portfolio and Van Kampen Enterprise Portfolio. It is not authorized for
distribution to prospective investors unless accompanied or preceded by a
current Prospectus for the Fund, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York 10013
IN0802 6/00
<PAGE>
Travelers Series Fund Inc.
Smith Barney High Income
Portfolio
Putnam Diversified Income
Portfolio
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
--------------------------------------------------------------------------------
April 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Travelers Series
Fund Inc.
[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the semi-annual report for the Travelers Series Fund
Inc. - Smith Barney High Income and Putnam Diversified Income Portfolios
("Portfolio(s)") for the period ended April 30, 2000. In this report, we
summarize the period's prevailing economic and market conditions and outline the
investment strategy employed by each Portfolio.1 A detailed summary of
performance and current holdings can be found in the appropriate sections that
follow. We hope you find this report to be useful and informative.
Portfolio Highlights 2
Smith Barney High Income Portfolio
For the six months ended April 30, 2000, the Smith Barney High Income Portfolio
returned 1.11%. In comparison, the Salomon Smith Barney Intermediate High Yield
Market Index3 and the Portfolio's Lipper, Inc. peer group returned 0.15% and
1.05%, respectively, over the same period. (Lipper, Inc. is an independent
fund-tracking organization.)
The Federal Reserve Board ("Fed") continued to raise short-term interest rates
during the period. The Fed raised interest rates three times for a total of 75
basis points4 during the reporting period and more recently on May 16, 2000,
raised interest rates an additional 50 basis points. While no assurances can be
made, the manager believes that the Fed's actions may slow down the historic
rate of U.S. economic growth as well as help to reduce the levels of speculation
in the stock market.
--------------
1 The information provided represents the opinion of the managers and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the Portfolios.
2 The following sections reflect the holdings of the Smith Barney High Income
Portfolio and Putnam Diversified Income Portfolio as of April 30, 2000.
After such date this information may not reflect the current Portfolios'
holdings. There is no assurance that certain securities will remain in or
out of the Portfolios. The Portfolios' holdings are subject to change.
3 The Salomon Smith Barney Intermediate High Yield Market Index is comprised
of both cash-pay and deferred interest bonds with a remaining maturity of
at least seven years, but less than ten years. An investor can not invest
directly in an index.
4 A basis point is 0.01% or one one-hundredth of a percent.
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Travelers Series Fund Inc. 1
<PAGE>
During the period, the price of high-yield bonds continued to decline due to
investor fears that continued economic growth could spur an even more
restrictive Fed monetary policy. In addition, the high-yield bond market was
negatively affected by continued outflows from open-end high-yield bond mutual
funds and higher default rates in the overall high-yield market.
While market conditions for high-yield bonds remained challenging during the
past six months, the manager remains optimistic that the high-yield bond market
may be nearing a bottom in prices and he expects to see improving trends in the
second half of 2000. Yet, in the near term, the manager remains cautious given
the increased volatility in the stock market and the potential for additional
interest rate increases by the Fed. All things considered, the manager believes
that the high-yield bond market is attractively valued at current levels and
that the Portfolio is in a strong position to take advantage of any economic or
market dislocations that may occur over the next six months.
During the reporting period, the manager sought to maintain a balance in the
Portfolio between the higher growth sectors such as telecommunications,
technology, and cable & media and what the manager believes to be well
established industries such as forest products, paper, energy and specialty
chemicals. During the period, the manager added to the Portfolio's holdings in
these basic industries.
The manager continued to reposition the Portfolio with an ongoing emphasis on
middle-quality B/B rated issues5 that offer what he thinks are the best yield
potential. The manager believes that this yield-oriented strategy should work
more effectively if rates continue to rise. Moreover, the manager has sought to
eliminate underperforming companies that appear to be increasingly vulnerable to
default.
Putnam Diversified Income Portfolio
For the six months ended April 30, 2000, the Putnam Diversified Income Portfolio
returned 1.33%. In comparison, the Lehman Brothers Aggregate Bond Index6
returned 1.42% and the Salomon Smith Barney Non-U.S. World Government Bond Index
-- Unhedged7 returned a negative 6.86% for the same period.
--------------
5 Bond ratings assess the risk of bonds through the study of all information
provided to the public, and to assign to the issue and issuing company
grades that accurately reflect the company's ability to meet the promised
principal and interest payments. Although somewhat different in their
letter usage, Standard & Poor's Ratings Service and Moody's Investors
Service, Inc., both rate bonds in descending alphabetical order from AAA to
D.
6 The Lehman Brothers Aggregate Bond Index is an unmanaged index composed of
the Lehman Brothers Intermediate Government/Bond Index and the
Mortgage-Backed Securities Index, and includes U.S. Treasury issues, agency
issues, corporate bond issues and mortgage-backed securities. An investor
cannot directly invest in an index.
7 The Salomon Smith Barney Non-U.S. World Government Bond Index -- Unhedged
is an unmanaged index composed of foreign government bonds. An investor
cannot invest directly in the index.
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2 2000 Semi-Annual Report to Shareholders
<PAGE>
The Portfolio's investment objective is high current income consistent with
preservation of capital. The Portfolio invests primarily in debt securities of
U.S. and foreign governments and corporations. The Portfolio may invest in
securities with a wide range of credit qualities depending on the particular
sector of the bond market in which the manager invests.
The manager combines "top down"8 and "bottom up"9 investment styles, allocating
the Portfolio's investments among various sectors of the bond market. The
Portfolio has holdings in the following three bond market areas: U.S. Government
bonds, high-yield bonds and international bonds.
In the view of the manager, the Portfolio's investment strategy worked
relatively well in a challenging bond market during the period. The historic
level of volatility in the markets continued to be influenced by the robust pace
of economic growth worldwide in addition to a change in Fed monetary policy. The
rise in interest rates worldwide, in addition to the ongoing strength of stocks,
negatively impacted the performance potential of most sectors of the bond
market.
The price of many technology stocks rose to new highs during the reporting
period that also added pressure to the bond market. Liquidity, that is, the
ability to buy or sell an asset quickly without a significant effect in price,
became an issue during the period, resulting in decreased bond fund inflows.
Although low by historic standards, a rising default rate in the high-yield bond
sector further concerned investors.
During the period, U.S. Treasury Secretary Lawrence Summers announced that the
U.S. Treasury would buy back roughly $30 billion outstanding in long-term bonds.
As a result, the yield curve inverted, as investors drove the price of 30-year
Treasuries up to all-time highs. (The yield curve is the graphical depiction of
the relationship between the yield on bonds of the same credit quality but
different maturities.) As the price of 30-year Treasuries increased, its yield
dropped below that of 10-year notes, resulting in a negatively sloped yield
curve.
--------------
8 Top-down investing is a method of looking at the trends in the general
economy, then selecting companies in industries most likely to benefit from
those trends.
9 Bottom-up investing is a search for outstanding performance of individual
stocks before considering the impact of economic trends.
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Travelers Series Fund Inc. 3
<PAGE>
Given the uncertain direction of interest rates, the manager invested primarily
in 10-year notes with limited exposure to longer-term issues that negatively
contributed to Portfolio performance as prices rose at the longer end of the
yield curve. In other areas of investment grade10 bonds, the manager purchased
mortgage-backed securities such as commercial mortgage-backed securities that
offered structural prepayment protection.
The Portfolio's manager kept the average duration neutral to slightly short
relative to its benchmarks, the Lehman Brothers Aggregate Bond Index and the
Salomon Smith Barney Non-U.S. World Government Index -- Unhedged. (Duration is a
common gauge of the price sensitivity of a fixed-income asset or portfolio to a
change in interest rates.) Generally, the shorter the duration, the less
sensitive bonds are to rising interest rates.
The Portfolio's primary focus during the period was on high-yield corporate
bonds. In the manager's opinion, those companies that are able to effectively
leverage technological innovation and intellectual capital should expect to
expand their businesses rapidly. Telecommunications companies -- companies
offering wireless communications, fixed communications and digital service line
("DSL") software -- are, in the view of the manager, well-positioned to benefit
from the increased necessity of these services both in offices and in homes. At
the end of the period, 25% to 30% of the Portfolio's holdings were in
telecommunications issues.
Emerging-market bonds were the best-performing area of the bond market during
the period. Stabilizing commodity prices, a strong U.S. economy, recovery in
Asian markets, and improving national fundamentals have, in the opinion of the
manager, made markets such as Mexico, Bulgaria, Argentina and Brazil promising
investment opportunities. Over the period, the manager slightly increased the
Portfolio's exposure to emerging-market bonds. Moreover, the Portfolio continued
to own sovereign bonds of the United Kingdom, Germany, Canada and Australia.
With respect to corporate bonds, the manager believes individual security
selection should continue to remain increasingly important for the rest of 2000.
In this challenging market, the manager is confident that Putnam's extensive
research capabilities and disciplined management of risk should continue to
support the Portfolio going forward. (Of course, no guarantees can be made that
the manager's investment approach or Putnam's research capabilities will
continue to be successful.)
--------------
10 Investment grade bonds are those bonds rated Aaa, Aa, A and Baa by Moody's
Investors Service, Inc. or AAA, AA, A and BBB by Standard & Poor's Ratings
Service, or that have an equivalent rating by any nationally recognized
statistical rating organization, or are determined by the manager to be of
equivalent quality.
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4 2000 Semi-Annual Report to Shareholders
<PAGE>
In closing, thank you for your investment in the Travelers Series Fund Inc. We
look forward to continuing to help you pursue your financial goals in the new
century.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
May 29, 2000
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Travelers Series Fund Inc. 5
<PAGE>
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Smith Barney High Income Portfolio
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Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $11.72 $11.85 $0.00 $0.00 1.11%++
--------------------------------------------------------------------------------
10/31/99 11.97 11.72 0.89 0.00 5.28
--------------------------------------------------------------------------------
10/31/98 13.25 11.97 0.74 0.17 (3.38)
--------------------------------------------------------------------------------
10/31/97 12.09 13.25 0.66 0.06 16.24
--------------------------------------------------------------------------------
10/31/96 11.26 12.09 0.50 0.00 12.17
--------------------------------------------------------------------------------
10/31/95 10.07 11.26 0.22 0.00 14.30
--------------------------------------------------------------------------------
6/16/94* - 10/31/94 10.00 10.07 0.00 0.00 0.70++
================================================================================
Total $3.01 $0.23
================================================================================
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
================================================================================
Six Months Ended 4/30/00++ 1.11%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (1.99)
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 7.56
--------------------------------------------------------------------------------
6/16/94* through 4/30/00 7.66
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return+
--------------------------------------------------------------------------------
================================================================================
6/16/94* through 4/30/00 54.34%
================================================================================
+ Assumes the reinvestment of all dividends and capital gains distributions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
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6 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Smith Barney High Income Portfolio vs.
Salomon Smith Barney Intermediate High Yield Market Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
Smith Barney Salomon Brothers Intermediate
High Income Portfolio High Yield Index
6/16/94 10,000 10,000
Oct-94 10,070 10,113
Oct-95 11,510 11,723
Oct-96 12,912 12,690
Oct-97 15,008 14,580
Oct-98 14,500 14,501
Oct-99 15,265 15,093
4/30/00 15,434 15,117
+ Hypothetical illustration of $10,000 invested in shares of the Smith Barney
High Income Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Salomon Smith Barney Intermediate High
Yield Market Index is comprised of 434 issues, both cash-pay and deferred
interest bonds with a remaining maturity of at least seven years, but less
than ten years. The bonds are all public, non-convertible issues with at
least $50 million outstanding. The index is unmanaged and is not subject to
the same management and trading expenses of a mutual fund. An investor
cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
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Travelers Series Fund Inc. 7
<PAGE>
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Putnam Diversified Income Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $11.24 $11.39 $0.00 $0.00 1.33%++
--------------------------------------------------------------------------------
10/31/99 11.70 11.24 0.67 0.00 1.80
--------------------------------------------------------------------------------
10/31/98 12.31 11.70 0.42 0.14 (0.65)
--------------------------------------------------------------------------------
10/31/97 11.99 12.31 0.56 0.09 8.44
--------------------------------------------------------------------------------
10/31/96 11.46 11.99 0.39 0.13 9.43
--------------------------------------------------------------------------------
10/31/95 10.18 11.46 0.09 0.00 13.55
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.18 0.00 0.00 1.80++
================================================================================
Total $2.13 $0.36
================================================================================
It is the Fund's policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
================================================================================
Six Months Ended 4/30/00++ 1.33%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (1.15)
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 5.45
--------------------------------------------------------------------------------
6/16/94* through 4/30/00 5.97
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Return+
--------------------------------------------------------------------------------
================================================================================
6/16/94* through 4/30/00 40.58%
================================================================================
+ Assumes the reinvestment of all dividends and capital gains distributions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
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8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Putnam Diversified Income Portfolio vs. Lehman Brothers
Aggregate Bond Index and Salomon Smith Barney
Non-U.S. World Government Bond Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
Salomon Smith Barney Non-U.S.
Putnam Diversified World Government Lehman Brothers
Income Portfolio Bond Index-Unhedged Aggregate Bond Index
6/16/94 10,000 10,000 10,000
Oct-94 10,180 10,554 10,052
Oct-95 11,560 12,155 11,626
Oct-96 12,650 12,818 12,305
Oct-97 13,717 14,410 13,399
Oct-98 13,628 16,254 14,651
Oct-99 13,873 15,772 14,730
4/30/00 14,058 14,690 14,939
+ Hypothetical illustration of $10,000 invested in shares of the Putnam
Diversified Income Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Lehman Brothers Aggregate Bond Index is
comprised of over 6,500 issues of U.S. Treasuries, Agencies, Corporate
Bonds and Mortgage-Backed Securities. The Salomon Smith Barney Non-U.S.
World Government Bond Index - Unhedged is comprised of fixed rate bonds
with a maturity of one year or longer, and at least $25 million
outstanding. This index includes securities from 10 countries, providing a
comprehensive measure of the total return performance of the domestic bond
markets in each country included, as well as the ten combined countries.
These indexes are unmanaged and are not subject to the same management and
trading expenses of a mutual fund. An investor cannot invest directly in an
index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
===============================================================================================
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 89.1%
Aerospace -- 1.1%
BE Aerospace Inc., Sr. Sub. Notes:
345,000 B 9.500% due 11/1/08 $ 300,150
Series B:
300,000 B 9.875% due 2/1/06 272,250
1,425,000 B 8.000% due 3/1/08 1,154,250
480,000 B- Dunlop Standard Aerospace Holdings, Sr. Notes,
11.875% due 5/15/09 472,800
-----------------------------------------------------------------------------------------------
2,199,450
-----------------------------------------------------------------------------------------------
Airlines -- 0.6%
1,402,534 BB Airplanes Pass-Through Trust, Corporate Asset-Backed
Securities, Series 1, Class D, 10.875% due 3/15/19 1,177,231
-----------------------------------------------------------------------------------------------
Aluminum -- 1.3%
Kaiser Aluminum & Chemical:
Sr. Notes:
180,000 B1* Series B, 10.875% due 10/15/06 172,800
215,000 B1* Series D, 10.875% due 10/15/06 206,400
2,285,000 B3* Sr. Sub. Notes, 12.750% due 2/1/03 2,170,750
-----------------------------------------------------------------------------------------------
2,549,950
-----------------------------------------------------------------------------------------------
Apparel -- 0.4%
835,000 B- Tropical Sportswear International, Guaranteed Sr. Sub.
Notes, Series A, 11.000% due 6/15/08 789,075
-----------------------------------------------------------------------------------------------
Auto Parts -- 1.7%
1,495,000 B Collins & Aikman Products, Guaranteed Sr. Sub. Notes,
11.500% due 4/15/06 1,472,575
505,000 B Dura Operating Corp., Sr. Sub. Notes, Series B,
9.000% due 5/1/09 451,975
Hayes Lemmerz International Inc., Guaranteed Sr. Sub. Notes:
285,000 B 11.000% due 7/15/06 288,562
425,000 B Series B, 8.250% due 12/15/08 366,562
765,000 B+ Tenneco Inc., Sr. Sub. Notes, Series B, 11.625% due 10/15/09 768,825
-----------------------------------------------------------------------------------------------
3,348,499
-----------------------------------------------------------------------------------------------
Broadcasting -- 0.8%
508,500 NR AMFM Operating Inc., Debentures, 12.625% due 10/31/06 583,504
680,000 B Capstar Broadcasting Corp., Sr. Discount Notes,
step bond to yield 10.857% due 2/1/09 601,800
260,000 B Young Broadcasting Corp., Sr. Sub. Notes,
11.750% due 11/15/04 261,950
-----------------------------------------------------------------------------------------------
1,447,254
-----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<S> <C> <C>
Building Products -- 0.9%
440,000 B Amatek Industries Properties Ltd., Sr. Sub. Notes,
12.000% due 2/15/08 $ 411,400
485,000 B- Atrium Cos., Inc., Guaranteed Sr. Sub. Notes, Series B,
10.500% due 5/1/09 453,475
1,020,000 B+ Nortek Inc., Sr. Notes, Series B, 9.125% due 9/1/07 948,600
----------------------------------------------------------------------------------------------------
1,813,475
----------------------------------------------------------------------------------------------------
Cable Television -- 11.3%
Adelphia Communications Corp.:
2,900,000 BB- Sr. Discount Notes, Series B, zero coupon due 1/15/08 1,225,250
Sr. Notes:
170,000 BB- 9.750% due 2/15/02 170,638
440,000 BB- 8.375% due 11/15/17 346,500
2,595,000 B+ Series B, 9.875% due 3/1/07 2,510,663
250,000 CCC+ Cable Satisfaction International, 12.750% due 3/1/10 (c) 240,000
Charter Communication Holdings:
2,345,000 B+ Sr. Discount Notes, step bond to yield
11.713% due 1/15/10 (b) 1,295,613
585,000 B+ Sr. Notes, 10.000% due 4/1/09 (b) 565,988
1,300,000 BB- CSC Holdings Inc., Sr. Sub. Debentures,
10.500% due 5/15/16 1,410,500
2,025,000GBP B- Diamond Holdings PLC, Guaranteed Notes,
10.000% due 2/1/08 3,080,097
1,825,000 B- NTL Inc., Sr. Notes, Series B, 11.500% due 10/1/08 1,861,500
620,000 B- RCN Corp., Sr. Discount Notes, step bond to yield
11.461% due 10/15/07 398,350
1,680,000 BB- Rogers Cablesystems Ltd., Guaranteed Sr. Sub. Debentures,
11.000% due 12/1/15 1,890,000
1,000,000 B+ Telewest Communications PLC, Sr. Notes,
11.250% due 11/1/08 1,030,000
4,310,000 B- United International Holdings Inc., Sr. Discount Notes,
Series B, step bond to yield 11.408% due 2/15/08 2,823,050
6,050,000 B2* United Pan-Europe Communications N.V., Sr. Discount Notes,
Series B, step bond to yield 12.500% due 8/1/09 2,994,750
----------------------------------------------------------------------------------------------------
21,842,899
----------------------------------------------------------------------------------------------------
Casinos/Gambling -- 2.1%
295,000 B Harvey Casinos Resorts, Sr. Sub. Notes,
10.625% due 6/1/06 300,900
Hollywood Casino Corp.:
365,000 B First Mortgage Notes, 13.000% due 8/1/06 (b) 386,900
1,115,000 B Guaranteed Sr. Sub. Notes, 11.250% due 5/1/07 1,137,300
490,000 NR Jazz Casino Co. LLC, Sr. Sub. Notes, 5.867% due 11/15/09 154,963
160,000 Ba2* Mandalay Resort Group, Sr. Sub. Debentures,
7.625% due 7/15/13 128,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<S> <C> <C>
Casinos/Gambling -- 2.1% (continued)
Sun International Hotels, Guaranteed Sr. Sub. Notes:
530,000 Ba3* 9.000% due 3/15/07 $ 478,325
865,000 Ba3* 8.625% due 12/15/07 774,175
815,000 B- Venetian Casino, Guaranteed Notes, 12.250% due 11/15/04 798,700
----------------------------------------------------------------------------------------------------
4,159,263
----------------------------------------------------------------------------------------------------
Chemicals - Major -- 1.6%
Huntsman Corp.:
1,055,000 B+ Guaranteed Sr. Sub. Notes, 10.125% due 7/1/09 1,060,275
5,000,000 B+ Sr. Discount Notes, zero coupon due 12/31/09 1,600,000
625,000 B+ Terra Industries Inc., Sr. Notes, Series B,
10.500% due 6/15/05 459,375
----------------------------------------------------------------------------------------------------
3,119,650
----------------------------------------------------------------------------------------------------
Chemicals - Specialty -- 0.6%
1,040,000 B Avecia Group PLC, Guaranteed Sr. Notes,
11.000% due 7/1/09 1,060,800
----------------------------------------------------------------------------------------------------
Coal Mining -- 0.1%
895,000 CCC- AEI Resources Inc., Guaranteed Sr. Sub. Notes,
10.500% due 12/15/05 (b) 138,725
----------------------------------------------------------------------------------------------------
Construction/AG Equipment/Trucks -- 0.1%
260,000 B Columbus McKinnon Corp., Guaranteed Sr. Sub. Notes,
8.500% due 4/1/08 231,400
----------------------------------------------------------------------------------------------------
Containers/Packaging -- 2.6%
290,000 B BWAY Corp., Guaranteed Sr. Sub. Notes, Series B,
10.250% due 4/15/07 262,450
775,000 B Huntsman Packaging Corp., Guaranteed Sr. Sub. Notes,
9.125% due 10/1/07 809,875
1,635,000 B Stone Container Corp., Guaranteed Sr. Notes,
11.500% due 8/15/06 (b) 1,696,313
955,000 B- Sweetheart Cup Co. Inc., Sr. Sub. Notes,
10.500% due 9/1/03 883,375
Tekni-Plex Inc., Series B:
435,000 B- Guaranteed Sr. Sub. Notes, 9.250% due 3/1/08 419,775
920,000 B- Sr. Sub. Notes, 11.250% due 4/1/07 952,200
----------------------------------------------------------------------------------------------------
5,023,988
----------------------------------------------------------------------------------------------------
Contract Drilling -- 2.0%
1,230,000 B+ Parker Drilling Co., Guaranteed Sr. Notes, Series D,
9.750% due 11/15/06 1,162,350
1,060,000 BB Pride International Inc., Sr. Notes, 10.000% due 6/1/09 1,067,950
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Contract Drilling -- 2.0% (continued)
RBF Finance Corp.:
725,000 BB- Guaranteed Sr. Secured Notes, 11.375% due 3/15/09 $ 775,750
785,000 Ba3* Sr. Notes, 12.250% due 3/15/06 851,725
----------------------------------------------------------------------------------------------------
3,857,775
----------------------------------------------------------------------------------------------------
Discount Stores -- 1.0%
1,180,000 B+ Ames Department Stores Inc., Sr. Notes,
10.000% due 4/15/06 1,097,400
675,000 BB+ Kmart Corp., Debentures, 12.500% due 3/1/05 754,312
----------------------------------------------------------------------------------------------------
1,851,712
----------------------------------------------------------------------------------------------------
Diversified Commercial Services -- 1.1%
1,100,000 B2* Intertek Finance PLC, Guaranteed Sr. Sub. Notes,
Series B, 10.250% due 11/1/06 924,000
1,350,000 B- Outsourcing Solutions Inc., Sr. Sub. Notes,
Series B, 11.000% due 11/1/06 1,196,438
----------------------------------------------------------------------------------------------------
2,120,438
----------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.5%
Amresco Inc., Sr. Sub. Notes:
500,000 CCC- Series 97-A, 10.000% due 3/15/04 332,500
885,000 CCC- Series 98-A, 9.875% due 3/15/05 588,525
----------------------------------------------------------------------------------------------------
921,025
----------------------------------------------------------------------------------------------------
Diversified Manufacture -- 0.5%
505,000 B- Blount Inc., Guaranteed Sr. Sub. Notes,
13.000% due 8/1/09 497,425
550,000 B+ Park-Ohio Industries Inc., Sr. Sub. Notes,
9.250% due 12/1/07 484,000
----------------------------------------------------------------------------------------------------
981,425
----------------------------------------------------------------------------------------------------
Drugs - Generic -- 1.3%
2,600,000 BB ICN Pharmaceuticals Inc., Sr. Notes, Series B,
9.250% due 8/15/05 2,541,500
----------------------------------------------------------------------------------------------------
Electronic Components -- 0.4%
672,000 B+ Celestica International Inc., Sr. Sub. Notes,
10.500% due 12/31/06 700,560
----------------------------------------------------------------------------------------------------
Engineering and Construction -- 0.8%
515,000 B- American Plumbing & Mechanic, Guaranteed Sr. Sub. Notes,
Series B, 11.625% due 10/15/08 457,062
630,000 BB- Integrated Electrical Services Inc., Guaranteed Sr. Sub.
Notes, Series B, 9.375% due 2/1/09 494,550
600,000 B- Orius Capital Corp., Sr. Sub. Notes, 12.750% due 2/1/10 (b) 609,000
----------------------------------------------------------------------------------------------------
1,560,612
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Environmental Services -- 3.1%
Allied Waste North America, Inc., Guaranteed Sr. Sub. Notes,
Series B:
320,000 BB- 7.875% due 1/1/09 $ 230,400
3,715,000 B+ 10.000% due 8/1/09 2,535,488
650,000 B+ IT Group Inc., Guaranteed Sr. Sub. Notes, Series B,
11.250% due 4/1/09 588,250
2,215,000 CCC+ Metal Management Inc., Guaranteed Sr. Sub. Notes,
10.000% due 5/15/08 1,605,875
960,000 B+ URS Corp., Sr. Sub. Notes, Series B, 12.250% due 5/1/09 974,400
----------------------------------------------------------------------------------------------------
5,934,413
----------------------------------------------------------------------------------------------------
Finance Companies -- 0.2%
500,000 CCC+ Madison River Capital, Sr. Notes, 13.250% due 3/1/10 (b) 472,500
----------------------------------------------------------------------------------------------------
Food Distributors -- 1.7%
645,000 B- Agrilink Foods Inc., Guaranteed Sr. Notes,
11.875% due 11/1/08 574,050
1,385,000 B2* Carrols Corp., Guaranteed Sr. Sub. Notes,
9.500% due 12/1/08 1,180,713
630,000 B2* International Home Foods, Guaranteed Sr. Sub. Notes,
10.375% due 11/1/06 623,700
620,000 B- Premier International Foods PLC, Sr. Notes,
12.000% due 9/1/09 (b) 589,000
310,000 B SC International Services Inc., Guaranteed Sr. Sub. Notes,
Series B, 9.250% due 9/1/07 283,650
----------------------------------------------------------------------------------------------------
3,251,113
----------------------------------------------------------------------------------------------------
Foods - Specialty/Candy -- 0.3%
600,000 B- B&G Foods Inc., Guaranteed Sr. Sub. Notes,
9.625% due 8/1/07 474,000
765,000 B2* Imperial Holly Corp., Guaranteed Sr. Sub. Notes,
9.750% due 12/15/07 156,825
----------------------------------------------------------------------------------------------------
630,825
----------------------------------------------------------------------------------------------------
Forest Products -- 0.9%
985,000 B Ainsworth Lumber Co. Ltd., Sr. Notes, 12.500% due 7/15/07 1,034,250
725,000 B+ Millar Western Forest, Sr. Notes, 9.875% due 5/15/08 705,062
----------------------------------------------------------------------------------------------------
1,739,312
----------------------------------------------------------------------------------------------------
Home Furnishings -- 0.3%
525,000 B Falcon Products Inc., Guaranteed Sr. Sub. Notes,
Series B, 11.375% due 6/15/09 493,500
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Hospital/Nursing Management -- 1.6%
575,000 Ba3* Fresenius Medical Care Capital Trust I, Trust Preferred
Securities, 9.000% due 12/1/06 $ 541,938
3,920,000 B- Magellan Health Services, Inc., Sr. Sub. Notes,
9.000% due 2/15/08 2,606,800
----------------------------------------------------------------------------------------------------
3,148,738
----------------------------------------------------------------------------------------------------
Hotels/Resorts -- 1.8%
200,000 B- Courtyard By Marriott II LP/ Courtyard Finance Co.,
Sr. Secured Notes, Series B, 10.750% due 2/1/08 197,000
1,710,000 BB HMH Properties, Inc., Guaranteed Sr. Notes, Series C,
8.450% due 12/1/08 1,534,725
Intrawest Corp., Sr. Notes:
865,000 B+ 9.750% due 8/15/08 830,400
960,000 B+ 10.500% due 2/1/10 (b) 952,800
----------------------------------------------------------------------------------------------------
3,514,925
----------------------------------------------------------------------------------------------------
Insurance - Multi-Line -- 0.1%
450,000 B Veritas Capital Trust, Guaranteed Trust Preferred Securities,
10.000% due 1/1/28 212,625
----------------------------------------------------------------------------------------------------
Internet Services -- 5.6%
255,000 NR Colo.com, 13.875% due 3/15/10 (c) 260,100
430,000 Caa2* Cybernet Internet Services International, Sr. Notes,
14.000% due 7/1/09 333,250
1,325,000 B- Exodus Communications Inc., Sr. Notes,
10.750% due 12/15/09 1,328,312
PSINet Inc., Sr. Notes:
910,000 B- 10.500% due 12/1/06 803,075
2,040,000 B- 11.500% due 11/1/08 1,825,800
1,025,000 B- 11.000% due 8/1/09 907,125
425,000EUR B- 11.000% due 8/1/09 (b) 346,636
1,240,000 B3* Rhythms Netconnections, Sr. Notes,
14.000% due 2/15/10 (b) 1,103,600
1,625,000 NR Splitrock Services, Inc., Guaranteed Sr. Sub. Notes,
Series B, 11.750% due 7/15/08 1,730,625
Verio Inc., Sr. Notes:
535,000 B- 10.375% due 4/1/05 514,938
840,000 B- 11.250% due 12/1/08 831,600
875,000 B- 10.625% due 11/15/09 (b) 842,188
185,000 CCC+ WAM!NET Inc., Guaranteed Sr. Discount Notes, Series B,
step bond to yield 12.554% due 3/1/05 102,675
----------------------------------------------------------------------------------------------------
10,929,924
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Leisure/Movies/Entertainment -- 0.4%
945,000 B- Premier Parks Inc., Sr. Discount Notes, step bond to yield
10.879% due 4/1/08 $ 627,244
150,000 B- SFX Entertainment, Inc., Guaranteed Sr. Sub. Notes,
Series B, 9.125% due 2/1/08 150,750
----------------------------------------------------------------------------------------------------
777,994
----------------------------------------------------------------------------------------------------
Medical Specialties -- 0.5%
1,155,000 B- Hangar Orthopedic Group, Sr. Sub. Notes,
11.250% due 6/15/09 918,225
----------------------------------------------------------------------------------------------------
Multi-Sector Companies -- 0.5%
1,060,000 B- Triarc Consumer Beverage, Guaranteed Sr. Sub. Notes,
10.250% due 2/15/09 1,001,700
----------------------------------------------------------------------------------------------------
Newspapers -- 0.9%
2,000,000 B+ Garden State Newspapers, Inc., Sr. Sub. Notes,
8.625% due 7/1/11 1,750,000
----------------------------------------------------------------------------------------------------
Oil/Gas Production -- 3.2%
Belco Oil & Gas Corp., Series B:
500,000 B1* Guaranteed Sr. Sub. Notes, 10.500% due 4/1/06 507,500
505,000 B1* Sr. Sub. Notes, 8.875% due 9/15/07 467,125
1,050,000 B Chesapeake Energy Corp., Guaranteed Sr. Notes,
Series B, 9.625% due 5/1/05 1,013,250
970,000 B Forest Oil Corp., Guaranteed Sr. Sub. Notes,
10.500% due 1/15/06 989,400
355,000 B Houston Exploration Co., Sr. Sub. Notes, Series B,
8.625% due 1/1/08 333,700
1,820,000 B+ Nuevo Energy Co., Sr. Sub. Notes, Series B,
9.500% due 6/1/08 1,797,250
125,000 BB- Ocean Energy, Inc., Guaranteed Sr. Sub. Notes, Series B,
8.875% due 7/15/07 124,063
675,000 B Stone Energy Corp., Guaranteed Sr. Sub. Notes,
8.750% due 9/15/07 637,875
375,000 B+ Vintage Petroleum, Sr. Sub. Notes, 9.750% due 6/30/09 378,750
----------------------------------------------------------------------------------------------------
6,248,913
----------------------------------------------------------------------------------------------------
Oil/Gas Transmission -- 0.3%
585,000 BB- Leviathan Gas Pipeline Partners, Guaranteed Sr. Sub. Notes,
Series B, 10.375% due 6/1/09 595,969
----------------------------------------------------------------------------------------------------
Oil Refining/Marketing -- 0.6%
1,370,000 B Clark USA Inc., Sr. Notes, Series B, 10.875% due 12/1/05 732,950
370,000 B+ Frontier Oil Corp., Sr. Notes, 11.750% due 11/15/09 357,975
----------------------------------------------------------------------------------------------------
1,090,925
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Paper -- 2.7%
1,770,000 B Doman Industries Ltd., Sr. Notes, 8.750% due 3/15/04 $1,566,450
510,000 CCC+ Repap New Brunswick Inc., Sr. Secured Notes,
10.625% due 4/15/05 483,225
Riverwood International Corp.:
490,000 B- Guaranteed Sr. Notes, 10.625% due 8/1/07 492,450
2,010,000 CCC+ Guaranteed Sr. Sub. Notes, 10.875% due 4/1/08 1,939,650
685,000 BB+ Tembec Industries Inc., Guaranteed Sr. Notes,
9.875% due 9/30/05 705,550
----------------------------------------------------------------------------------------------------
5,187,325
----------------------------------------------------------------------------------------------------
Pharmaceuticals - Other -- 0.5%
975,000 B King Pharmaceutical Inc., Guaranteed Sr. Sub. Notes,
10.750% due 2/15/09 999,375
----------------------------------------------------------------------------------------------------
Photographic Products -- 0.5%
860,000 BB- Polaroid Corp., Sr. Notes, 11.500% due 2/15/06 872,900
----------------------------------------------------------------------------------------------------
Printing/Forms -- 0.3%
435,000 B Merrill Corp., 12.000% due 5/1/09 (b)(c) 415,425
125,000GBP B Polestar Corp. PLC, Sr. Notes, Series B, 10.500% due 5/30/08 185,819
----------------------------------------------------------------------------------------------------
601,244
----------------------------------------------------------------------------------------------------
Real Estate Investment Trusts (REITS) -- 0.3%
700,000 NR Ocwen Asset Investment Corp., Sr. Notes,
11.500% due 7/1/05 549,500
----------------------------------------------------------------------------------------------------
Rental/Leasing Companies -- 1.0%
165,000 BB- Avis Rent A Car Inc., Guaranteed Sr. Sub. Notes,
11.000% due 5/1/09 172,837
370,000 B NationsRent, Inc., Guaranteed Sr. Sub. Notes,
10.375% due 12/15/08 268,250
United Rentals Inc., Guaranteed Sr. Sub. Notes, Series B:
820,000 BB- 9.250% due 1/15/09 744,150
895,000 BB- 9.000% due 4/1/09 796,550
----------------------------------------------------------------------------------------------------
1,981,787
----------------------------------------------------------------------------------------------------
Retail - Food Chains -- 0.3%
595,000 B+ Stater Brothers Holdings, Sr. Notes, 10.750% due 8/15/06 593,512
----------------------------------------------------------------------------------------------------
Retail - Other Specialty Stores -- 0.3%
745,000 B- Advance Stores Co., Inc., Guaranteed Sr. Sub. Notes,
Series B, 10.250% due 4/15/08 596,000
----------------------------------------------------------------------------------------------------
Savings and Loan Associations -- 1.4%
1,075,000 B2* Ocwen Capital Trust I, Guaranteed Capital Securities,
10.875% due 8/1/27 607,375
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Savings and Loan Associations -- 1.4% (continued)
1,000,000 B+ Ocwen Federal Bank FSB, Sub. Debentures,
12.000% due 6/15/05 $ 930,000
1,205,000 B+ Ocwen Financial Corp., Notes, 11.875% due 10/1/03 1,102,575
----------------------------------------------------------------------------------------------------
2,639,950
----------------------------------------------------------------------------------------------------
Semiconductors -- 0.5%
985,000 B Fairchild Semiconductor Inc., Sr. Sub. Notes,
10.125% due 3/15/07 982,538
----------------------------------------------------------------------------------------------------
Steel/Iron Ore -- 2.1%
830,000 BB- LTV Corp., Sr. Notes, 11.750% due 11/15/09 (b) 821,700
715,000 B+ Russell Metals Inc., 10.000% due 6/1/09 (c) 729,300
2,035,000 B+ WCI Steel Inc., Sr. Notes, Series B, 10.000% due 12/1/04 2,014,650
640,000 B- WHX Corp., Sr. Notes, 10.500% due 4/15/05 596,800
----------------------------------------------------------------------------------------------------
4,162,450
----------------------------------------------------------------------------------------------------
Telecommunications - Major U.S. -- 0.2%
430,000 B2* Omnipoint Corp., Sr. Notes, Series A, 11.625% due 8/15/06 457,950
----------------------------------------------------------------------------------------------------
Telecommunications - Other -- 12.0%
390,000 B+ Call-Net Enterprises Inc., Sr. Notes, 9.375% due 5/15/09 267,150
425,000EUR B+ ESAT Telecom Group PLC, Sr. Notes, 11.875% due 11/1/09 489,939
Esprit Telecom Group PLC, Sr. Notes:
299,999DEM B- 11.500% due 12/15/07 125,093
575,000 B- 11.500% due 12/15/07 503,125
400,000 B- 10.875% due 6/15/08 334,000
Focal Communications Corp.:
480,000 B Sr. Discount Notes, Series B, step bond to yield
12.978% due 2/15/08 314,400
495,000 B Sr. Notes, 11.875% due 1/15/10 (b) 498,094
1,145,000 BB Global Crossing Holdings Ltd., Sr. Notes,
9.500% due 11/15/09 (b) 1,122,100
850,000EUR B Global Telesystems, Sr. Notes, 11.000% due 12/1/09 (b) 681,654
695,000 CCC+ GT Group Telecom, step bond to yield
13.250% due 2/1/10 (c) 371,825
Hermes Europe Railtel B.V., Sr. Notes:
1,550,000 B 11.500% due 8/15/07 1,402,750
235,000 B 10.375% due 1/15/09 203,275
ICG Holdings Inc.:
675,000 B- Guaranteed Sr. Discount Notes, step bond to yield
12.976% due 5/1/06 543,375
855,000 B- Sr. Discount Notes, step bond to yield
13.080% due 9/15/05 812,250
1,000,000EUR CCC+ Jazztel PLC, Sr. Notes, 13.250% due 12/15/09 (b) 922,694
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Telecommunications - Other -- 12.0% (continued)
KMC Telecom Holdings Inc.:
1,110,000 B- Sr. Discount Notes, step bond to yield
15.899% due 2/15/08 $ 550,838
785,000 B- Sr. Notes, 13.500% due 5/15/09 702,575
Level 3 Communications Inc.:
5,120,000 B Sr. Discount Notes, step bond to yield
12.856% due 3/15/10 (b) 2,675,200
1,875,000EUR B Sr. Notes, 11.250% due 3/15/10 (b) 1,631,801
915,000 B+ Metromedia Fiber Network, Sr. Notes, Series B,
10.000% due 11/15/08 873,825
530,000 B- MGC Communications Inc., Sr. Notes, 13.000% due 4/1/10 (b) 490,250
NEXTLINK Communications, L.C.C./NEXTLINK Capital, Inc.,
Sr. Discount Notes:
1,605,000 B Step bond to yield 12.039% due 6/1/09 946,950
1,190,000 B Step bond to yield 12.125% due 12/1/09 (b) 660,450
Sr. Notes:
215,000 B 12.500% due 4/15/06 225,750
1,675,000 B 10.750% due 6/1/09 1,654,063
1,175,000 B- Primus Telecommunications Group Inc., Sr. Notes,
11.750% due 8/1/04 1,104,500
Tele 1 Europe B.V., Sr. Notes:
400,000EUR B- 13.000% due 5/15/09 384,569
610,000 B- 13.000% due 5/15/09 628,300
285,000 B- VersaTel Telecom International B.V., Sr. Notes,
13.250% due 5/15/08 290,700
805,000 B- Viatel Inc., Sr. Notes, 11.250% due 4/15/08 736,575
1,375,000 NR World Access Inc., Sr. Notes, Series B, 13.250% due 1/15/08 1,251,250
----------------------------------------------------------------------------------------------------
23,399,320
----------------------------------------------------------------------------------------------------
Telephone - Cellular -- 8.9%
1,145,000 CCC AirGate PCS Inc., Sr. Sub. Discount Notes,
step bond to yield 16.049% due 10/1/09 664,100
1,390,000 CCC+ Alamosa PCS Holdings Inc., Guaranteed Sr. Discount Notes,
step bond to yield 12.724% due 2/15/10 729,750
735,000 B- Centennial Cellular Corp., Sr. Sub. Notes,
10.750% due 12/15/08 735,000
Clearnet Communications Inc.:
1,000,000CAD B Sr. Discount Notes, step bond to yield
13.794% due 5/15/08 425,187
1,000,000 B1* Sr. Secured Notes, 10.125% due 7/7/07 990,000
2,255,000 B Crown Castle International Corp., Sr. Discount Notes,
step bond to yield 11.202% due 5/15/11 1,364,275
665,000 NR Dobson/Sygnet Communications, Sr. Notes,
12.250% due 12/15/08 694,925
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Telephone - Cellular -- 8.9% (continued)
Microcell Telecommunications, Sr. Discount Notes:
405,000 B3* Step bond to yield 11.842% due 6/1/06 $ 367,537
1,905,000 B- Step bond to yield 11.759% due 6/1/09 1,228,725
1,625,000 B- Millicom International Cellular S.A., Sr. Discount Notes,
step bond to yield 13.802% due 6/1/06 1,373,125
Nextel Communications, Inc.:
Sr. Discount Notes:
1,515,000 B- Step bond to yield 10.824% due 9/15/07 1,155,187
2,740,000 B- Step bond to yield 10.798% due 2/15/08 1,941,975
510,000 B1* Sr. Notes, 9.375% due 11/15/09 489,600
165,000 B3* Nextel Partners Inc., Sr. Discount Notes,
step bond to yield 13.110% due 2/1/09 110,550
630,000 B- Spectrasite Holdings Inc., Sr. Discount Notes,
step bond to yield 11.250% due 4/15/09 349,650
Telesystems International Wireless Inc., Sr. Discount Notes:
1,975,000 CCC+ Series B, step bond to yield 12.439% due 6/30/07 1,254,125
1,250,000 CCC+ Series C, step bond to yield 12.078% due 11/1/07 681,250
1,820,000 B3* Triton PCS Inc., Guaranteed Sr. Sub. Discount Notes,
step bond to yield 11.270% due 5/1/08 1,314,950
Voicestream Wireless Corp.:
620,000 B- Sr. Discount Notes, step bond to yield
11.875% due 11/15/09 (b) 384,400
Sr. Notes:
235,000 B2* 11.500% due 9/15/09 (b) 252,625
145,000 B- 10.375% due 11/15/09 (b) 147,900
Winstar Communications Inc.:
535,000 B- Sr. Discount Notes, step bond to yield
15.034% due 4/15/10 (b) 242,088
350,000 B- Sr. Notes, 12.750% due 4/15/10 (b) 336,000
----------------------------------------------------------------------------------------------------
17,232,924
----------------------------------------------------------------------------------------------------
Textiles -- 0.3%
1,450,000DEM B Texon International PLC, Sr. Notes, 10.000% due 2/1/08 631,639
----------------------------------------------------------------------------------------------------
Transportation - Marine -- 0.5%
475,000 B- Oglebay Norton Co., Sr. Sub. Notes, 10.000% due 2/1/09 439,375
675,000 BB- Sea Containers Ltd., Sr. Sub. Debentures, Series A,
12.500% due 12/1/04 577,125
----------------------------------------------------------------------------------------------------
1,016,500
----------------------------------------------------------------------------------------------------
Unregulated Power Generation -- 2.3%
AES Corp.:
2,195,000 Ba1* Sr. Notes, 9.500% due 6/1/09 2,162,075
1,340,000 Ba3* Sr. Sub. Notes, 10.250% due 7/15/06 1,323,250
1,000,000 BB+ Calpine Corp., Sr. Notes, 10.500% due 5/15/06 1,057,500
----------------------------------------------------------------------------------------------------
4,542,825
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
====================================================================================================
<C> <C> <S> <C>
Wholesale Distributors -- 0.2%
440,000 B Buhrmann U.S. Inc., Sr. Sub. Notes,
12.250% due 11/1/09 (b) $ 453,200
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $187,424,573) 173,049,246
----------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES -- 0.1%
Contract Drilling -- 0.1%
145,000 B- Parker Drilling Co., Sub. Notes, 5.500% due 8/1/04
(Cost -- $105,617) 106,031
----------------------------------------------------------------------------------------------------
<CAPTION>
SHARES SECURITY VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK (d) -- 0.2%
Telecommunications - Other -- 0.2%
14,121 Tele1 Europe Holdings A.B. 218,876
4,320 World Access Inc. 68,040
----------------------------------------------------------------------------------------------------
286,916
----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $130,356) 286,916
----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.1%
Savings and Loan Associations -- 0.1%
10,100 California Federal Preferred Capital Corp., Series A,
9.125% Noncumulative Exchangeable 224,725
----------------------------------------------------------------------------------------------------
Telephone - Cellular -- 0.0%
210 Dobson Communications Corp., 13.000% Exchangeable 21,551
----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost -- $273,567) 246,276
----------------------------------------------------------------------------------------------------
WARRANTS (d) -- 0.4%
Broadcasting -- 0.0%
1,075 Australis Holdings Ltd., Expire 10/30/01 (b) 0
1,950 UIH Australia/Pacific Inc., Expire 5/15/06 58,500
----------------------------------------------------------------------------------------------------
58,500
----------------------------------------------------------------------------------------------------
Cable Television -- 0.0%
750 Wireless One Inc., Expire 10/19/00 188
----------------------------------------------------------------------------------------------------
Internet Services -- 0.2%
1,625 Splitrock Services, Inc., Expire 7/15/08 370,894
2,100 WAM!NET Inc., Expire 3/1/05 (b) 24,413
430 Znet Internet Services, Expire 7/1/09 (b) 45,150
----------------------------------------------------------------------------------------------------
440,457
----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
====================================================================================================
<C> <S> <C>
Telecommunications - Other -- 0.1%
700 RSL Communications Ltd., Expire 11/15/06 (b) $ 36,400
285 VersaTel Telecom International B.V., Expire 5/15/08 (b) 152,475
----------------------------------------------------------------------------------------------------
188,875
----------------------------------------------------------------------------------------------------
Telephone Cellular -- 0.1%
870 Airgate PCS Inc., Expire 10/1/09 154,425
925 Iridium World Communications Ltd., Expire 7/15/05 (b) 9
----------------------------------------------------------------------------------------------------
154,434
----------------------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost -- $305,799) 842,454
====================================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $188,239,912) 174,530,923
====================================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 10.1%
$19,708,000 Goldman, Sachs & Co., 5.670% due 5/1/00;
Proceeds at maturity -- $19,717,312; (Fully
collateralized by U.S. Treasury Notes and Bonds,
6.500% to 11.125% due 10/31/01 to 2/15/21;
Market value -- $20,102,171) (Cost -- $19,708,000) 19,708,000
====================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $207,947,912**) $194,238,923
====================================================================================================
</TABLE>
+ Face amount denominated in U.S. dollars unless otherwise indicated.
(a) All ratings are by Standard & Poor's Ratings Service, except those
identified by an asterisk (*), which are rated by Moody's Investors
Service, Inc.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(c) Security has been issued with attached warrants.
(d) Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
Currency abbreviations used in this schedule:
---------------------------------------------
CAD -- Canadian Dollar
DEM -- German Mark
EUR -- Euro
GBP -- British Pound
See page 48 for definitions of ratings.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
================================================================================
U.S. GOVERNMENT SECTOR -- 24.5%
================================================================================
U.S. Treasury Obligations -- 15.2%
U.S. Treasury Bonds:
$9,785,000 5.250% due 5/15/04 $ 9,344,564
425,000 5.875% due 11/15/04 413,878
1,110,000 6.000% due 8/15/09 1,085,957
2,905,000 6.375% due 8/15/27 2,971,147
1,805,000 6.125% due 11/15/27 1,789,513
7,045,000 6.125% due 8/15/29 7,058,526
--------------------------------------------------------------------------------
22,663,585
--------------------------------------------------------------------------------
U.S. Government Agencies -- 9.3%
545,000 Federal Home Loan Mortgage Corporation,
7.500% due 8/1/28 533,926
Federal National Mortgage Association (FNMA):
796,445 6.000% due 4/1/29 - 9/1/30 721,115
306,184 7.000% due 5/1/11 - 11/11/29 296,413
664,947 7.500% due 9/1/29 - 4/1/30 650,965
437,840 8.000% due 11/1/29 437,429
Government National Mortgage Association (GNMA):
1,568,212 6.500% due 8/15/27 - 7/15/29 1,470,200
5,192,016 7.000% due 11/15/25 - 5/15/28 4,997,318
757,465 7.500% due 6/15/23 - 10/15/23 745,392
3,934,141 8.000% due 10/15/24 - 3/15/28 3,946,627
--------------------------------------------------------------------------------
13,799,385
--------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECTOR
(Cost -- $36,671,654) 36,462,970
================================================================================
FACE
AMOUNT RATING(a) SECURITY VALUE
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.8%
781,000 BBB- Amresco Commercial Mortgage Funding I,
Series 1997-C1, Class F, 7.640% due 6/17/29 723,279
340,000 BBB Commercial Mortgage Acceptance Corp.,
Series 1997-ML1, Class D, 6.973% due 12/15/10 308,709
380,000 Aaa* Countrywide Home Loans, Series 1998-3, Class A5,
6.750% due 4/25/28 345,681
405,000 BBB GGP Ala Moana, Series 1999-C1, Class E,
8.380% due 9/10/04 405,000
85,000 BBB GGP Homart, Series 1999-C1, Class G,
8.630% due 6/10/03 (b) 85,000
GGP Ivanhoe, Series 1999-C1:
176,000 BBB Class F, 8.630% due 10/10/04 (b) 176,440
105,000 BBB Class G, 9.382% due 10/10/04 (b) 105,263
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=========================================================================================
<C> <C> <S> <C>
Merrill Lynch Mortgage Investors Inc.:
$ 225,000 BBB- Series 1996-C2, Class E, 6.960% due 11/21/28 $ 193,359
14,000 BBB Series 1998-C2, Class D, 6.951% due 2/15/30 12,648
190,373 AAA PNC Mortgage Securities Corp., Series 1997-6,
Class A2, 6.600% due 7/25/27 187,667
109,322 AAA Rural Housing Trust, Series 1987-1, Class D,
6.330% due 4/1/26 106,398
-----------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost -- $2,699,766) 2,649,444
=========================================================================================
ASSET-BACKED SECURITIES -- 0.3%
400,000 BB- Airplanes Pass-Through Trust, Series 1, Class D,
10.875% due 3/15/19 366,500
70,843 Ba3* ContiMortgage Home Equity Loan Trust, Series 1997-1,
Class M2, 7.670% due 3/15/28 34,691
-----------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost -- $510,833) 401,191
=========================================================================================
HIGH-YIELD SECTOR -- 52.8%
=========================================================================================
CORPORATE BONDS AND NOTES -- 49.9%
Advertising -- 0.6%
275,000 B Adams Outdoor Advertising L.P./Adams Outdoor
Advertising, Inc., Sr. Notes, 10.750% due 3/15/06 281,875
230,000 B- AOA Holding LLC/AOA Capital Corp., Sr. Notes,
10.375% due 6/1/06 223,100
119,070 NR Big Flower Holdings, Inc., Term Loans, 9.004% due 3/1/10 (b) 119,070
300,000 B1* Lamar Advertising Co., Guaranteed Sr. Sub. Notes,
9.250% due 8/15/07 294,000
-----------------------------------------------------------------------------------------
918,045
-----------------------------------------------------------------------------------------
Aerospace -- 0.6%
Argo-Tech Corp., Guaranteed Sr. Sub. Notes:
290,000 B- 8.625% due 10/1/07 216,050
20,000 B- Series D, 8.625% due 10/1/07 14,900
310,000 B BE Aerospace Inc., Sr. Sub. Notes, 8.000% due 3/1/08 251,100
290,000 B- Decrane Aircraft Holdings Inc., Sr. Sub. Notes,
12.000% due 9/30/08 (b) 253,750
L-3 Communications Corp.:
100,000 B Guaranteed Sr. Sub. Notes, Series B, 8.000% due 8/1/08 87,250
Sr. Sub. Notes:
80,000 B 8.500% due 5/15/08 72,800
45,000 B Series B, 10.375% due 5/1/07 45,450
-----------------------------------------------------------------------------------------
941,300
-----------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Agriculture -- 0.0%
$ 28,464 NR Premium Standard Farms Inc., Sr. Secured Notes,
11.000% due 9/17/03 $ 25,902
-------------------------------------------------------------------------------------------------
Airlines -- 0.6%
700,000 Ba2* Calair LLC/Calair Capital Corp., Guaranteed Sr. Notes,
8.125% due 4/1/08 638,750
150,000 C* Canadian Airlines Corp., Sr. Notes, 10.000% due 5/1/05 (d) 129,750
280,000 CCC Cathay International Ltd., Sr. Notes, 13.000% due 4/15/08 (b) 128,100
-------------------------------------------------------------------------------------------------
896,600
-------------------------------------------------------------------------------------------------
Automotive -- 2.3%
180,000 B Dura Operating Corp., Sr. Sub. Notes, 9.000% due 5/1/09 (b) 161,100
540,000 BB+ Federal-Mogul Corp., Notes, 7.750% due 7/1/06 442,800
260,000 BB+ Lear Corp., Sub. Notes, 9.500% due 7/15/06 256,100
90,000 B Motor Coach Industries International, Inc.,
Guaranteed Sr. Sub. Notes, 11.250% due 5/1/09 87,300
120,000 NR Motors and Gears, Inc., Sr. Notes, Series D,
10.750% due 11/15/06 114,600
300,000 NR Navistar International Inc., Sr. Sub. Notes, 8.000% due 2/1/08 283,500
47,000 B- Oxford Automotive, Inc., Guaranteed Sr. Sub. Notes,
Series D, 10.125% due 6/15/07 43,945
60,000 Ca* Safety Components International Inc., Sr. Sub. Notes,
10.125% due 7/15/07 (d) 8,700
2,000,000 NR Transportation Technologies Industries, Inc., Term Loans,
9.859% due 3/1/07 (b) 1,985,000
-------------------------------------------------------------------------------------------------
3,383,045
-------------------------------------------------------------------------------------------------
Broadcasting -- 3.0%
225,000 B- ACME Television, LLC/ACME Finance Corp., Sr. Discount
Notes, step bond to yield 11.737% due 9/30/04 209,250
110,000 B Affinity Group Holdings Inc., Sr. Notes, 11.000% due 4/1/07 92,950
AMFM Inc.:
660,000 Ba2* Guaranteed Sr. Notes, 8.000% due 11/1/08 659,175
155,000 B Sr. Discount Notes, step bond to yield
18.403% due 2/1/09 137,175
240,000 B Sr. Sub. Notes, 9.250% due 7/1/07 242,400
75,800 NR AMFM Operating Inc., Sr. Sub. Exchange Debentures,
12.625% due 10/31/06 86,980
40,000 B- Azteca Holdings S.A., Sr. Notes, 11.000% due 6/15/02 38,500
56,900 B Capstar Broadcasting Partners, Inc., Sub. Debentures,
12.000% due 7/1/09 65,435
40,000 CC Central European Media Enterprises Ltd., Sr. Notes,
9.375% due 8/15/04 15,800
305,000 B- Citadel Broadcasting Co., Sr. Sub. Notes, 10.250% due 7/1/07 308,050
520,000 B Echostar DBS Corp., Sr. Notes, 9.375% due 2/1/09 (b) 507,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Broadcasting -- 3.0% (continued)
Fox Kids Worldwide, Inc.:
$ 60,000 B1* Sr. Discount Notes, step bond to yield
12.514% due 11/1/07 $ 36,900
175,000 B1* Sr. Notes, 9.250% due 11/1/07 154,875
Garden State Newspapers, Inc., Sr. Sub. Notes:
225,000 B+ 8.750% due 10/1/09 201,375
130,000 B+ 8.625% due 7/1/11 (b) 113,750
Granite Broadcasting Corp., Sr. Sub. Notes:
100,000 B3* 9.375% due 12/1/05 92,250
30,000 B3* 8.875% due 5/15/08 25,800
340,000 B- LIN Holdings Corp., Sr. Discount Notes, step bond to yield
12.065% due 3/1/08 204,000
95,000 B2* LIN Television Corp., Guaranteed Sr. Sub. Notes,
8.375% due 3/1/08 82,412
110,000 B- Paxon Communications, Sr. Sub. Notes,
11.625% due 10/1/02 (b) 112,475
195,000 NR PHI Holdings Inc., Notes, 16.000% due 5/15/01 169,650
180,000 B- Radio One, Inc., Guaranteed Sr. Sub. Notes, Series B,
7.000% due 5/15/04 191,700
240,000 CCC+ Sirius Satellite Radio Inc., Sr. Secured Notes,
14.500% due 5/15/09 220,800
240,000 B- Spanish Broadcasting Systems Inc., Sr. Notes,
9.625% due 11/1/09 236,400
240,000 B+ TV Azteca SA, Guaranteed Sr. Notes, 10.500% due 2/15/07 217,200
100,000 NR XM Satellite Radio Holdings, Inc., Sr. Secured Notes,
14.000% due 3/15/10 (b)(c) 90,500
-------------------------------------------------------------------------------------------------
4,512,802
-------------------------------------------------------------------------------------------------
Building/Construction -- 0.6%
120,000 B- Albecca Inc., Sr. Sub. Notes, 10.750% due 8/15/08 96,900
50,000 Caa1* American Architectural Products Corp., Sr. Notes,
11.750% due 12/1/07 12,625
50,000 B- Atrium Cos. Inc., Guaranteed Sr. Sub. Notes, Series B,
10.500% due 5/1/09 46,750
140,000 BB Building Materials Corp., Sr. Notes, 8.000% due 12/1/08 (b) 119,000
300,000 Ba1* D.R. Horton, Inc., Guaranteed Sr. Notes, 8.000% due 2/1/09 255,000
30,000 B2* Del Webb Corp., Sr. Sub. Debentures, 9.375% due 5/1/09 24,150
190,000 BB- GS Superhighway, Sr. Notes, 9.875% due 8/15/04 (b) 135,375
40,000 BB MDC Holdings, Inc., Sr. Notes, 8.375% due 2/1/08 34,400
100,000 B NCI Building Systems Inc., Series B, Sr. Sub. Notes,
9.250% due 5/1/09 92,000
50,000 B Republic Group Inc., Sr. Sub. Notes, 9.500% due 7/15/08 40,750
-------------------------------------------------------------------------------------------------
856,950
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Business Services -- 0.0%
$ 30,000 B- Outsourcing Solutions Inc., Sr. Sub. Notes,
11.000% due 11/1/06 $ 26,587
-------------------------------------------------------------------------------------------------
Cable -- 3.4%
550,000 B- Allbritton Communications Co., Sr. Sub. Notes,
8.875% due 2/1/08 495,000
320,000 BB- Century Communications Corp., Sr. Notes, 9.500% due 3/1/05 310,400
710,000 B+ Charter Communications Holdings LLC, Sr. Notes,
8.625% due 4/1/09 (b) 623,913
150,000 B- Classic Cable Inc., Sr. Sub. Notes, 10.500% due 3/1/10 (b) 148,500
CSC Holdings Inc.:
50,000 BB- Debentures, 7.875% due 2/15/18 44,563
1,020,000 BB- Sr. Notes, 7.250% due 7/15/08 923,100
Sr. Sub. Debentures:
25,000 BB- 9.875% due 2/15/13 25,500
250,000 BB- 10.500% due 5/15/16 271,250
235,000 B- Diamond Cable Communications PLC, Sr. Discount Notes,
step bond to yield 11.817% due 2/15/07 179,775
150,000 BB- FLAG Ltd., Sr. Notes, 8.250% due 1/30/08 123,750
165,000 B3* Golden Sky Systems Inc., Sr. Sub. Notes,
12.375% due 8/1/06 182,325
245,000 NR KNOLOGY Holdings, Inc., Sr. Discount Notes,
step bond to yield 15.916% due 10/15/07 155,575
NTL Inc., Sr. Notes:
305,000 B- 10.000% due 2/15/07 (b) 297,375
130,000 B- 11.500% due 10/1/08 132,600
40,000 B3* Pegasus Communications Corp., Sr. Notes,
9.750% due 12/1/06 (b) 39,400
90,000 B3* Pegasus Media & Communications Inc., Notes,
12.500% due 7/1/05 96,075
400,000 BB+ Rogers Cablesystems Ltd., Debentures, 10.125% due 9/1/12 417,000
110,000 Caa3* Supercanal Holdings S.A., Sr. Notes, 11.500% due 5/15/05 (d) 55,550
480,000 B+ Telewest PLC, Sr. Notes, 9.875% due 2/1/10 (b) 472,800
-------------------------------------------------------------------------------------------------
4,994,451
-------------------------------------------------------------------------------------------------
Chemicals -- 1.7%
90,000 B- GEO Specialty Chemicals, Inc., Sr. Sub. Notes,
10.125% due 8/1/08 (b) 77,850
160,000 BB- Georgia Gulf Corp., Sr. Sub. Notes, 10.375% due 11/1/07 (b) 164,800
Huntsman Corp., Sr. Sub. Notes:
100,000 B2* 9.380% due 7/1/07 (b) 91,625
50,000 B2* 9.500% due 7/1/07 (b) 45,750
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Chemicals -- 1.7% (continued)
$ 370,000 B+ Huntsman ICI Chemicals LLC, Guaranteed Sr. Sub. Notes,
10.125% due 7/1/09 $ 371,850
200,000 BB- ISP Holdings Inc., Sr. Notes, 9.750% due 2/15/06 191,000
50,000 B2* Koppers Industries Inc., Sr. Notes, 9.875% due 12/1/07 45,750
Lyondell Chemical Co.:
676,000 BB Sr. Secured Notes, Series A, 9.625% due 5/1/07 668,395
80,000 B+ Sr. Sub. Notes, 10.875% due 5/1/09 79,400
450,000 B PCI Chemicals, Sr. Secured Notes, 9.250% due 10/15/07 362,813
Polymer Group Inc., Sr. Sub. Notes:
65,000 B 9.000% due 7/1/07 58,825
70,000 B 8.750% due 3/1/08 63,175
Sterling Chemicals Holdings, Inc.:
105,000 B Sr. Discount Notes, step bond to yield 19.790% due 8/15/08 48,825
110,000 B Sr. Secured Notes, Series B, 12.375% due 7/15/06 114,950
Sr. Sub. Notes:
30,000 B 11.750% due 8/15/06 26,850
30,000 B Series A, 11.250% due 4/1/07 25,350
190,000 B+ Trikem S.A., Sub. Notes, 10.625% due 7/24/07 (b) 142,025
-------------------------------------------------------------------------------------------------
2,579,233
-------------------------------------------------------------------------------------------------
Conglomerates -- 0.5%
Iron Mountain Inc.:
725,000 B Guaranteed Sr. Sub. Notes, 8.750% due 9/30/09 650,687
40,000 B Sr. Sub. Notes, 8.250% due 6/26/07 34,500
-------------------------------------------------------------------------------------------------
685,187
-------------------------------------------------------------------------------------------------
Consumer Products and Services -- 0.4%
200,000 B Coinmach Corp., Sr. Notes, 11.750% due 11/15/05 177,000
French Fragrances, Inc.:
40,000 B+ Guaranteed Sr. Notes, Series D, 10.375% due 5/15/07 38,600
30,000 B+ Sr. Notes, Series B, 10.375% due 5/15/07 28,950
Revlon Consumer Products Corp.:
40,000 CCC+ Sr. Exchange Notes, 8.125% due 2/1/06 28,600
80,000 CCC+ Sr. Notes, 9.000% due 11/1/06 58,000
180,000 CCC Sr. Sub. Notes, 8.625% due 2/1/08 90,000
180,000 B+ Royster-Clark, Inc., First Mortgage Notes, 10.250% due 4/1/09 147,600
45,000 B- Sealy Mattress Co., Sr. Sub. Notes, 9.875% due 12/15/07 44,100
-------------------------------------------------------------------------------------------------
612,850
-------------------------------------------------------------------------------------------------
Containers -- 0.3%
290,000 B AEP Industries Inc., Sr. Sub. Notes, 9.875% due 11/15/07 242,150
230,000 B+ Packaging Corp., Sr. Sub. Notes, 9.625% due 4/1/09 (b) 232,875
-------------------------------------------------------------------------------------------------
475,025
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Electronics -- 0.8%
$1,000,000 BB- Amkor Technology Inc., Sr. Notes, 9.250% due 5/1/03 $ 985,000
60,000 B- ChipPAC International Ltd., Guaranteed Sr. Sub. Notes,
12.750% due 8/1/09 (b) 63,300
20,000 B1* Moog Inc., Sr. Sub. Notes, 10.000% due 5/1/06 19,550
160,000 B Zilog Inc., Sr. Secured Notes, 9.500% due 3/1/05 144,800
-------------------------------------------------------------------------------------------------
1,212,650
-------------------------------------------------------------------------------------------------
Energy -- 2.9%
60,000 BB- AES China Generating Co., Ltd., Notes,
10.125% due 12/15/06 40,500
280,000 B1* Belco Oil & Gas Corp., Guaranteed Sr. Sub. Notes,
Series B, 10.500% due 4/1/06 284,200
15,000 B Benton Oil & Gas Co., Sr. Notes, 9.375% due 11/1/07 8,812
655,000 BB CMS Energy Corp., Sr. Notes, 8.125% due 5/15/02 643,538
90,000 B+ Giant Industries, Inc., Guaranteed Sr. Sub. Notes,
9.000% due 9/1/07 80,550
Gulf Canada Resources Ltd., Sr. Sub. Debentures:
40,000 BBB- 9.250% due 1/15/04 40,200
50,000 BBB- 9.625% due 7/1/05 50,750
100,000 B HS Resources, Inc., Guaranteed Sr. Sub. Notes,
9.250% due 11/15/06 98,250
500,000 BB- Leviathan Gas Pipe Line Partners, L.P./Leviathan
Finance Corp., Guaranteed Sr. Sub. Notes, Series B,
10.375% due 6/1/09 509,375
1,000,000 B+ Nuevo Energy Co., Sr. Sub. Notes, Series B,
9.500% due 6/1/08 987,500
Ocean Energy, Inc.:
160,000 BB- Guaranteed Sr. Sub. Notes, Series B, 8.875% due 7/15/07 158,800
160,000 BB- Sr. Notes, Series B, 8.375% due 7/1/08 154,400
Parker Drilling Co.:
30,000 B- Convertible Bonds, 5.500% due 8/1/04 21,937
120,000 B- Guaranteed Sr. Sub. Notes, Series D, 9.750% due 11/15/06 113,400
100,000 BB+ Pioneer Natural Resources Co., Guaranteed Sr. Notes,
9.625% due 4/1/10 99,750
500,000 Ba3* R&B Falcon Corp., Guaranteed Sr. Notes,
9.500% due 12/15/08 495,000
90,000 BB+ Santa Fe Synder Corp., Notes, 8.750% due 6/15/07 88,875
250,000 Caa1* Seven Seas Petroleum Inc., Sr. Notes, 12.500% due 5/15/05 105,625
50,000 B Stone Energy Corp., Guaranteed Sr. Sub. Notes,
8.750% due 9/15/07 47,250
260,000 BB- Vintage Petroleum Inc., Sr. Sub. Notes, 9.750% due 6/30/09 262,600
80,000 NR XCL Ltd., Sr. Secured Discount Notes,
13.500% due 5/1/04 (b)(c)(d) 8,000
-------------------------------------------------------------------------------------------------
4,299,312
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 29
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Entertainment -- 0.5%
$ 210,000 B- AMC Entertainment Inc., Sr. Sub. Notes,
9.500% due 2/1/11 (b) $ 115,500
125,000 B Cinemark USA Inc., Sr. Sub. Notes, 9.625% due 8/1/08 84,375
110,000 B Hollywood Park Inc., Sr. Sub. Notes, 9.250% due 2/15/07 (b) 110,000
SFX Entertainment, Inc., Guaranteed Sr. Sub. Notes:
240,000 B- 9.125% due 12/1/08 (b) 241,200
150,000 B- Series B, 9.125% due 2/1/08 150,750
110,000 Ca* Silver Cinemas International, Inc., Sr. Sub. Notes,
10.500% due 4/15/05 (d) 26,950
293,000 C* United Artists Theatre Co., Sr. Sub. Notes, Series B,
9.750% due 4/15/08 (d) 13,185
-------------------------------------------------------------------------------------------------
741,960
-------------------------------------------------------------------------------------------------
Environmental Services -- 1.0%
350,000 BB- Allied Waste Industries, Inc., Debentures,
7.400% due 9/15/35 248,500
630,000 BB- Allied Waste North America, Inc., Guaranteed Sr. Sub.
Notes, Series B, 10.000% due 8/1/09 429,975
120,000 BB Azurix Corp., Notes, 10.375% due 2/15/07 (b) 121,500
Waste Management Inc.:
500,000 BBB Guaranteed Sr. Notes, 6.875% due 5/15/09 410,625
330,000 BBB Notes, 7.700% due 10/1/02 313,913
-------------------------------------------------------------------------------------------------
1,524,513
-------------------------------------------------------------------------------------------------
Financial Services -- 2.6%
215,000 CCC+ Aames Financial Corp., Sr. Notes, 9.125% due 11/1/03 125,775
Advanta Corp., Notes:
80,000 BB- 7.000% due 5/1/01 76,700
270,000 BB- 6.920% due 1/28/02 249,075
Amresco Inc. Sr. Sub. Notes:
150,000 CCC- Series 97-A, 10.000% due 3/15/04 99,750
60,000 CCC- Series 98-A, 9.875% due 3/15/05 39,900
200,000 B+ Chevy Chase Savings Bank, Sub. Debentures,
9.250% due 12/1/05 190,500
30,000 BB Colonial Capital II, Guaranteed Capital Securities,
Series A, 8.920% due 1/15/27 26,962
170,000 BB Conseco Financing Trust III, Guaranteed Capital Securities,
8.796% due 4/1/27 55,250
ContiFinancial Corp., Sr. Notes:
250,000 CC 7.500% due 3/15/02 (d) 28,125
600,000 CC 8.375% due 8/15/03 (d) 67,500
70,000 CC 8.125% due 4/1/08 (d) 7,875
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Financial Services -- 2.6% (continued)
$ 190,000 B Delta Financial Corp., Sr. Notes, 9.500% due 8/1/04 $ 109,250
750,000 BB+ Golden State Holdings Inc., Sr. Notes, 7.000% due 8/1/03 687,187
1,000 Caa1* Greate Bay Property Funding, First Mortgage Notes,
10.875% due 1/15/04 (d) 655
330,000 B1* Hanvit Bank, Sub. Notes, 11.750% due 3/1/10 (b) 325,875
60,000 B- Imperial Credit Capital Trust I, Guaranteed Notes,
Series B, 10.250% due 6/14/02 46,350
70,000 B- Imperial Credit Industries Inc., Sr. Notes, Series B,
9.875% due 1/15/07 51,275
310,000 CCC+ Madison River Capital LLC/Madison River Finance Corp.,
Sr. Notes, 13.250% due 3/1/10 (b) 292,950
250,000 B- Nationwide Credit Inc., Sr. Notes, 10.250% due 1/15/08 183,750
280,000 B2* Ocwen Capital Trust I, Guaranteed Capital Securities,
10.875% due 8/1/27 158,200
45,000 B+ Ocwen Federal Bank FSB, Sub. Debentures,
12.000% due 6/15/05 41,850
25,000 B+ Ocwen Financial Corp., Notes, 11.875% due 10/1/03 22,875
30,000 B+ Pioneer Americas Acquisition Corp., Sr. Secured Notes,
9.250% due 6/15/07 25,050
106,170 CC Polytama International Finance BV, Guaranteed Notes,
11.250% due 6/15/07 15,926
430,000 BB- RBF Finance Co., Sr. Secured Notes, 11.000% due 3/15/06 454,725
314,000 BBB- Reliance Group Holdings, Inc., Sr. Notes, 9.000% due 11/15/00 292,805
165,000 B- Resource America Inc., Sr. Notes, 12.000% due 8/1/04 137,775
30,000 Baa3* Riggs Capital, Trust Preferred Securities,
8.625% due 12/31/26 (b) 24,263
40,000 BB Webster Capital Trust I, Capital Securities,
9.360% due 1/29/27 (b) 38,650
-------------------------------------------------------------------------------------------------
3,876,823
-------------------------------------------------------------------------------------------------
Food and Beverage -- 0.5%
Aurora Foods Inc., Sr. Sub. Notes:
130,000 CCC+ Series B, 9.875% due 2/15/07 73,450
100,000 CCC+ Series D, 9.875% due 2/15/07 56,500
250,000 B FRD Acquisition Co., Sr. Notes, 12.500% due 7/15/04 88,750
170,000 CCC+ Rab Enterprises Inc., Sr. Notes, 10.500% due 5/1/05 113,050
260,000 B- Triarc Consumer Products Group LLC/Triarc Beverage
Holdings Corp., Guaranteed Sr. Sub. Notes,
10.250% due 2/15/09 245,700
150,000 B Vlasic Foods International Inc., Sr. Sub. Notes, Series B,
10.250% due 7/1/09 98,250
-------------------------------------------------------------------------------------------------
675,700
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 31
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Health Care -- 2.5%
$ 80,000 B- Alaris Medical Systems Inc., Sr. Sub. Notes,
9.750% due 12/1/06 $ 64,500
70,000 B Bio-Rad Laboratories, Inc., Sr. Sub. Notes,
11.625% due 2/15/07 (b) 71,750
Columbia/HCA Healthcare Corp.:
50,000 BB+ Debentures, 8.360% due 4/15/24 45,250
Notes:
40,000 BB+ 7.000% due 7/1/07 35,400
60,000 BB+ 7.250% due 5/20/08 53,175
50,000 BB+ 7.690% due 6/15/25 41,000
230,000 Ba2* 6.630% due 7/15/45 216,487
100,000 B2* Dade International Inc., Sr. Sub. Notes, 11.125% due 5/1/06 92,500
125,000 B3* Extendicare Health Services, Inc., Guaranteed Sr. Sub. Notes,
9.350% due 12/15/07 63,125
150,000 Ba3* Fresenius Medical Care Capital Trust, 7.875% due 2/1/08 136,500
40,000 B- Hanger Orthopedic Group, Inc., Sr. Sub. Notes,
11.250% due 6/15/09 31,800
190,000 BBB- Healthsouth Corp., Convertible Sub. Debentures,
3.250% due 4/1/03 150,100
ICN Pharmaceuticals Inc., Sr. Notes:
150,000 BB 9.250% due 8/15/05 146,625
470,000 BB 8.750% due 11/15/08 439,450
260,000 C Integrated Health Services, Inc., Sr. Sub. Notes,
9.500% due 9/15/07 (d) 6,500
155,000 B3* Kinetic Concepts Inc., Sr. Sub. Notes, 9.625% due 11/1/07 113,925
100,000 B- Leiner Health Products Inc., Sr. Sub. Notes, 9.625% due 7/1/07 74,625
100,000 B- Lifepoint Hospitals Holdings, Inc., Guaranteed Sr. Sub.
Notes, Series B, 10.750% due 5/15/09 103,500
Mariner Post-Acute Network Inc., Sr. Sub. Notes:
140,000 C* 9.500% due 11/1/07 (d) 3,500
310,000 C* Step bond to yield 11.453% due 11/1/07 (d) 4,650
110,000 CC Mediq Inc., Sr. Discount Debentures, step bond to yield
18.655% due 6/1/09 (b) 6,050
140,000 Caa3* Mediq/PRN Life Support Services, Inc., Guaranteed
Sr. Sub. Notes, 11.000% due 6/1/08 (b) 14,700
Medpartners Inc., Sr. Sub. Notes:
10,000 B 6.875% due 9/1/00 9,850
20,000 B 7.375% due 10/1/06 16,300
330,000 C Multicare Cos. Inc., Sr. Sub. Notes, 9.000% due 8/1/07 18,150
120,000 Ca* Paracelsus Healthcare Corp., Sr. Sub. Notes,
10.000% due 8/15/06 (d) 36,600
Sun Healthcare Group Inc., Sr. Sub. Notes:
165,000 Ca* 9.500% due 7/1/07 (b)(d) 10,725
190,000 Ca* 9.375% due 5/1/08 (d) 12,350
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Health Care -- 2.5% (continued)
Tenet Healthcare Corp.:
$ 45,000 BB+ Sr. Notes, 8.000% due 1/15/05 $ 43,312
Sr. Sub. Notes:
245,000 BB+ 8.625% due 1/15/07 236,119
150,000 BB+ 8.125% due 12/1/08 (b) 140,250
1,190,000 B- Triad Hospitals Holdings, Inc., Guaranteed Sr. Sub. Notes,
11.000% due 5/15/09 1,243,550
-------------------------------------------------------------------------------------------------
3,682,318
-------------------------------------------------------------------------------------------------
Hotel/Casino -- 3.1%
60,000 B- Ameristar Casinos, Inc., Guaranteed Sr. Sub. Notes,
Series B, 10.500% due 8/1/04 60,000
55,000 B+ Autotote Corp., Guaranteed Sr. Notes, Series B,
10.875% due 8/1/04 54,587
260,000 B+ Boyd Gaming Co., Sr. Sub. Notes, 9.500% due 7/15/07 247,000
100,000 B- Epic Resorts Inc., Sr. Secured Notes, 13.000% due 6/15/05 63,500
200,000 Caa3* Fitzgeralds Gaming Corp., Sr. Secured Notes,
12.250% due 12/15/04 (d) 111,000
20,000 B- Hard Rock Hotel, Inc., Sr. Sub. Notes, Series B,
9.250% due 4/1/05 17,800
400,000 BB+ Harrah's Operating Co., Inc., Guaranteed Sr. Notes,
7.500% due 1/15/09 377,500
HMH Properties, Inc.:
350,000 BB Guaranteed Sr. Notes, Series B, 7.875% due 8/1/08 304,500
50,000 BB Sr. Notes, 8.450% due 12/1/08 44,875
430,000 B Hollywood Casino Corp., Guaranteed Sr. Secured Notes,
11.250% due 5/1/07 438,600
130,000 B+ Horseshoe Gaming Holding Corp., Guaranteed Sr. Sub.
Notes, Series B, 8.625% due 5/15/09 122,525
500,000 BB- Host Marriott Travel Plaza, Sr. Secured Notes,
9.500% due 5/15/05 518,750
350,000 B Isle of Capri Black Hawk LLC/Isle of Capri Black Hawk
Capital Corp., First Mortgage Notes, Series B,
13.000% due 8/31/04 382,375
60,000 B Isle of Capri Casinos Corp., Guaranteed Sr. Sub. Notes,
Series B, 8.750% due 4/15/09 54,450
160,000 BB- Mohegan Tribal Gaming Authority, Sr. Sub. Notes,
8.750% due 1/1/09 152,000
Park Place Entertainment Corp.:
90,000 BBB- Sr. Notes, 8.500% due 11/15/06 86,625
80,000 BB+ Sr. Sub. Notes, 9.375% due 2/15/07 (b) 79,400
75,000 BBB- Players International Inc., Sr. Notes, 10.875% due 4/15/05 78,187
90,000 B+ Prime Hospitality Corp., Sr. Sub. Notes, 9.750% due 4/1/07 86,850
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 33
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Hotel/Casino -- 3.1% (continued)
Starwood Hotels & Resorts Worldwide Inc., Notes:
$ 250,000 BB+ 6.250% due 11/15/00 $ 246,875
300,000 BB+ 6.750% due 11/15/03 279,000
600,000 B- Trump Atlantic City Associates/Trump Atlantic City
Funding, Inc., First Mortgage Notes, 11.250% due 5/1/06 435,750
230,000 NR Trump Castle Funding Inc., Notes, 10.250% due 4/30/03 (b) 232,300
140,000 CCC+ Venetian Casino Resort LLC/Las Vegas Sands, Inc.,
Guaranteed Mortgage Notes, 12.250% due 11/15/04 137,200
-------------------------------------------------------------------------------------------------
4,611,649
-------------------------------------------------------------------------------------------------
Industrial Goods and Services -- 1.4%
70,000 B+ Applied Power Inc., Sr. Sub. Notes, 8.750% due 4/1/09 72,450
250,000 B- Axia Inc., Sr. Sub. Notes, 10.750% due 7/15/08 191,875
350,000 B- Better Minerals & Aggregates, Sr. Sub. Notes,
13.000% due 9/15/09 (b) 348,250
140,000 B+ Flextronics International Ltd., Sr. Sub. Notes,
8.750% due 10/15/07 133,000
240,000 B2* Home Interiors and Gifts Inc., Sr. Sub. Notes,
10.125% due 6/1/08 190,800
80,000 B Huntsman Packaging Corp., Sr. Sub. Notes,
9.125% due 10/1/07 83,600
50,000 B- Jackson Products Inc., Sr. Sub. Notes, 9.500% due 4/15/05 45,750
500,000 B North Atlantic Trading Co., Inc., Sr. Notes, Series B,
11.000% due 6/15/04 467,500
590,000 BB+ Owens-Illinois Inc., Sr. Notes, 8.100% due 5/15/07 550,175
60,000 B- Paragon Corporate Holdings Inc., Guaranteed Sr. Notes,
9.625% due 4/1/08 18,300
-------------------------------------------------------------------------------------------------
2,101,700
-------------------------------------------------------------------------------------------------
Manufacturing -- 0.7%
440,000 B- Blount Inc., Sr. Sub. Notes, 13.000% due 8/1/09 433,400
90,000 B- Burke Industries, Inc., Guaranteed Sr. Sub. Notes,
10.000% due 8/15/07 34,650
120,000 B- Decora Industries, Inc., Secured Notes, 11.000% due 5/1/05 55,800
35,000 CCC+ HCC Industries Inc., Sr. Sub. Notes, 10.750% due 5/15/07 17,675
200,000 B- Roller Bearing Co., Inc., Sr. Sub. Notes, 9.625% due 6/15/07 185,000
270,000 CCC+ Samsonite Corp., Sr. Sub. Notes, 10.750% due 6/15/08 228,150
90,000 B+ Tenneco Automotive Inc., Guaranteed Sr. Sub. Notes,
Series B, 11.625% due 10/15/09 90,450
-------------------------------------------------------------------------------------------------
1,045,125
-------------------------------------------------------------------------------------------------
Metals -- 1.3%
390,000 BB AK Steel Corp., Sr. Notes, 7.875% due 2/15/09 358,800
128,550 CCC Anker Coal Group Inc., Sr. Secured Notes,
14.250% due 9/1/07 54,634
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<C> <C> <S> <C>
Metals -- 1.3% (continued)
$ 180,000 BB California Steel Industries, Inc., Sr. Notes, Series B,
8.500% due 4/1/09 $ 170,100
60,000 B- Continental Global Group Inc., Sr. Notes, 11.000% due 4/1/07 24,300
170,000 B3* Kaiser Aluminum & Chemical Corp., Sr. Sub. Notes,
12.750% due 2/1/03 161,500
200,000 B- Lodestar Holdings Inc., Sr. Notes, 11.500% due 5/15/05 41,000
370,000 NR LTV Corp., Sr. Notes, 11.750% due 11/15/09 (b) 366,300
330,000 Ba3* National Steel Corp., First Mortgage Bonds,
Series D, 9.875% due 3/1/09 334,125
90,000 NR Neenah Corp., Sr. Sub. Notes, 11.125% due 5/1/07 (b) 70,650
110,000 B+ WCI Steel Inc., Sr. Secured Notes, Series B,
10.000% due 12/1/04 108,900
70,000 B+ Wheeling-Pittsburg Corp., Guaranteed Sr. Notes,
9.250% due 11/15/07 64,050
170,000 B- WHX Corp., Sr. Notes, 10.500% due 4/15/05 158,525
-------------------------------------------------------------------------------------------------
1,912,884
-------------------------------------------------------------------------------------------------
Paper -- 2.0%
235,000 B3* APP China Group Ltd., Sr. Discount Notes,
14.000% due 3/15/10 (b)(c) 188,587
300,000 Caa* APP Finance II Mauritius Ltd., Perpetual Notes, 12.000% 165,750
295,000 B Doman Industries Ltd., Sr. Notes, 8.750% due 3/15/04 261,075
Gaylord Container Corp.:
120,000 B- Sr. Notes, Series B, 9.3750% due 6/15/07 105,000
80,000 B- Sr. Sub. Notes, Series B, 9.875% due 2/15/08 63,600
130,000 B- Impac Group, Inc., Sr. Sub. Notes, 10.125% due 3/15/08 130,650
195,000 B3* Indah Kiat Finance Mauritius Ltd., Sr. Notes,
10.000% due 7/1/07 129,187
190,000 B+ Pacifica Paper, Inc., Sr. Notes, 10.000% due 3/15/09 190,950
395,000 B3* Pindo Deli Finance Mauritius Ltd., Sr. Notes,
10.750% due 10/1/07 259,712
519,000 CCC+ Repap New Brunswick, Sr. Notes, 10.625% due 4/15/05 491,753
895,000 B- Riverwood International Corp., Sr. Sub. Notes,
10.875% due 4/1/08 863,675
220,000 B3* Tjiwi Kimia Finance Mauritius Ltd., Sr. Notes, 10.000% due 8/1/04 147,950
-------------------------------------------------------------------------------------------------
2,997,889
-------------------------------------------------------------------------------------------------
Publishing -- 0.1%
200,000 B- Perry-Judd Inc., Sr. Sub. Notes, 10.625% due 12/15/07 161,000
Von Hoffman Press Inc., Sr. Sub. Notes:
30,000 B- 10.375% due 5/15/07 (b) 27,600
26,000 NR 13.500% due 5/15/09 (b) 23,400
-------------------------------------------------------------------------------------------------
212,000
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 35
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Retail -- 1.3%
$ 350,000 BBB- 7-Eleven, Inc., Sr. Sub. Second Priority Notes,
4.500% due 6/15/04 $ 290,062
140,000 B+ Grupo Elektra S.A. de C.V., Sr. Notes,
12.000% due 4/1/08 (b) 129,500
370,000 Baa3* Kmart Corp., Sr. Notes, 8.375% due 12/1/04 360,288
150,000 B Mothers Work Inc., Sr. Notes, 12.625% due 8/1/05 141,750
390,000 B+ NBTY Inc., Sr. Sub. Notes, Series B, 8.625% due 9/15/07 341,250
90,000 Baa3* Saks Inc., Guaranteed Sr. Notes, 8.250% due 11/15/08 83,925
480,000 NR Sbarro Inc., Sr. Notes, 11.000% due 9/15/09 483,600
203,000 Ca* U.S. Office Product Co., Sr. Sub. Notes, 9.750% due 6/15/08 74,095
90,000 BB+ Zale Corp., Sr. Notes, 8.500% due 10/1/07 85,950
-------------------------------------------------------------------------------------------------
1,990,420
-------------------------------------------------------------------------------------------------
Technology -- 1.8%
Covad Communications Group, Inc.:
200,000 B- Sr. Discount Notes, Series B, step bond to yield
16.402% due 3/15/08 123,000
Sr. Notes:
210,000 B- 12.500% due 2/15/09 202,650
36,000 B- 12.000% due 2/15/10 (b) 34,020
Cybernet Internet Services International, Inc.:
440,000 Caa2* Convertible Sub. Notes, step bond to yield
13.260% due 8/15/09 (b) 215,600
60,000 Caa2* Sr. Notes, 14.000% due 7/1/09 46,500
70,000 B1* DII Group Inc., Sr. Sub. Notes, 8.500% due 9/15/07 71,050
385,000 NR DIVA Systems Corp., Sr. Discount Notes,
step bond to yield 21.403% due 3/1/08 213,675
Exodus Communications, Sr. Notes:
40,000 B- 11.250% due 7/1/08 40,700
200,000 B- 10.750% due 12/15/09 200,500
260,000 B Fairchild Semiconductor Corp., Sr. Sub. Notes,
10.125% due 3/15/07 259,350
130,000 B- Globix Corp., Sr. Notes, 12.500% due 2/1/10 (b) 115,050
58,850 NR InterAct Operating Co., Notes, 14.000% due 8/1/03 17,655
140,000 NR Intira Corp., Sr. Notes, 13.000% due 2/1/10 (b) 74,607
360,000 CCC Northpoint Communications Group, Inc., Sr. Notes,
12.875% due 2/15/10 (b) 322,200
120,000 B- PSINet Inc., Sr. Notes, 11.000% due 8/1/09 106,200
600,000 BB+ Unisys Corp., Sr. Notes, 7.875% due 4/1/08 576,000
-------------------------------------------------------------------------------------------------
2,618,757
-------------------------------------------------------------------------------------------------
Telecommunications -- 10.4%
390,000 B+ 360Networks Inc., Sr. Notes, 13.000% due 5/1/08 (b) 385,125
70,000 Caa1* AirGate PCS, Inc., Sr. Sub. Notes, step bond to yield
12.161% due 10/1/09 40,600
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
36 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Telecommunications -- 10.4% (continued)
$ 400,000 CCC+ Alamosa PCS Holdings Inc., Guaranteed Sr. Discount
Notes, step bond to yield 12.786% due 2/15/10 $ 210,000
310,000 B+ Alaska Communications Systems Holdings, Inc.,
Guaranteed Sr. Sub. Notes, 9.375% due 5/15/09 285,200
1,200,000 NR American Cellular Corp., Term Loans, 9.609% due 3/1/08 (b) 1,197,000
90,000 CCC+ Arch Communications Group, Inc., Sr. Discount Notes,
step bond to yield 16.584% due 3/15/08 51,300
110,000 B3* Barak I.T.C., Sr. Discount Notes, Series B, step bond to yield
15.901% due 11/15/07 61,050
480,000 B3* Benedek Communications Corp., Sr. Discount Notes,
step bond to yield 16.085% due 5/15/06 420,000
90,000 NR Birch Telecom Inc., Sr. Notes, 14.000% due 6/15/08 90,562
400,000 NR Celcaribe SA, Sr. Notes, 14.500% due 3/15/04 318,500
23,000 B+ Celestica International Inc., Sr. Sub. Notes,
10.500% due 12/31/06 23,978
136,000 B1* Cellco Finance NV, Sr. Sub. Notes, 15.000% due 8/1/05 143,140
700,000 NR CellNet Data Systems, Inc., Sr. Discount Notes,
step bond to yield 19.109% due 10/1/07 54,250
80,000 B3* Clearnet Communications Inc., Sr. Discount Notes,
step bond to yield 11.627% due 12/15/05 81,600
60,000 NR Colo.com, Sr. Notes, 13.875% due 3/15/10 (b)(c) 61,200
35,000 B- Concentric Networks Inc., Sr. Notes, 12.750% due 12/15/07 37,625
60,000 B- Esprit Telecom Group Inc., Sr. Notes, 11.500% due 12/15/07 52,500
360,000 NR FirstWorld Communications, Inc., Sr. Discount Notes,
step bond to yield 18.265% due 4/15/08 163,800
260,000 B Focal Communications Corp., Sr. Discount Notes, Series B,
step bond to yield 14.006% due 2/15/08 170,300
Global Crossing Holdings Ltd., Sr. Notes:
100,000 BB 9.125% due 11/15/06 (b) 97,500
540,000 BB 9.625% due 5/15/08 531,900
100,000 BB 9.500% due 11/15/09 (b) 98,000
50,000 Caa1* Golden Sky DBS Inc., Sr. Discount Notes, Series B,
step bond to yield 11.986% due 3/1/07 33,750
125,000 B+ Grupo Iusacell S.A. de C.V., Sr. Notes,
14.250% due 12/1/06 (b) 130,938
80,000 NR GST USA, Inc., Sr. Secured Exchange Notes,
13.250% due 5/1/07 44,400
50,000 B+ Hyperion Telecommunications, Inc., Sr. Notes,
12.250% due 9/1/04 52,125
ICG Holdings, Inc.:
200,000 B- Guaranteed Sr. Secured Discount Notes, step bond to yield
19.167% due 5/1/06 161,000
10,000 B- Sr. Discount Notes, step bond to yield
17.647% due 9/15/00 9,500
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 37
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Telecommunications -- 10.4% (continued)
ICG Services, Inc., Sr. Discount Notes:
$ 440,000 B- Step bond to yield 11.616% due 2/15/08 $226,600
380,000 B- Step bond to yield 11.484% due 5/1/08 188,100
200,000 B- Innova S. de R.L., Sr. Notes, 12.875% due 4/1/07 182,500
440,000 B IPC Information Systems Inc., Sr. Discount Notes,
step bond to yield 11.210% due 5/1/08 371,800
KMC Telecom Holdings, Inc.:
500,000 B- Sr. Discount Notes, step bond to yield
16.827% due 2/15/08 248,125
240,000 B- Sr. Notes, 13.500% due 5/15/09 214,800
170,000 CCC Leap Wireless International, Inc., Sr. Notes,
12.500% due 4/15/10 (b)(c) 170,850
Level 3 Communications, Inc., Sr. Notes:
400,000 B 11.000% due 3/15/08 (b) 389,000
210,000 B 9.125% due 5/1/08 183,750
280,000 NR Logix Communications Enterprises, Inc., Sr. Notes,
12.250% due 6/15/08 124,600
40,000 B1* Loral Space & Communications Ltd., Sr. Notes,
9.500% due 1/15/06 27,200
350,000 B- McCaw International Ltd., Sr. Discount Notes,
step bond to yield 15.969% due 4/15/07 257,250
270,000 B3* Microcell Communications, Sr. Discount Notes,
step bond to yield 14.310% due 6/1/06 245,025
575,000 B- Millicom International Cellular, Sr. Discount Notes,
step bond to yield 16.722% due 6/1/01 485,875
Nextel Communications, Inc., Sr. Serial Redeemable Notes:
260,000 B1* 12.000% due 11/1/08 279,500
760,000 B1* 9.375% due 11/15/09 729,600
370,000 B- Nextel International, Inc., Sr. Discount Notes,
step bond to yield 15.465% due 4/15/08 234,950
160,000 B3* Nextel Partners, Inc., Sr. Notes, 11.000% due 3/15/10 (b) 157,600
190,000 NR NorthEast Optic Network Inc., Sr. Notes,
12.750% due 8/15/08 185,250
50,000 NR OnePoint Communications Corp., Guaranteed Sr. Notes,
Series B, 14.500% due 6/1/08 32,750
Orbital Imaging Corp., Sr. Notes:
110,000 CCC+ Series B, 11.625% due 3/1/05 55,550
20,000 CCC+ Series D, 11.625% due 3/1/05 (b) 10,100
40,000 NR Paging Network Inc., Sr. Notes, 13.500% due 6/6/05 5,900
350,000 NR Pathnet Inc., Sr. Notes, 12.250% due 4/15/08 232,750
170,000 Ba2* Price Communications Wireless Inc., Sr. Secured Notes,
9.125% due 12/15/06 168,725
200,000 B- Primus Telecom Group, Inc., Sr. Notes, 9.875% due 5/15/08 170,500
230,000 B- RCN Corp., Sr. Notes, 10.125% due 1/15/10 205,850
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
38 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Telecommunications -- 10.4% (continued)
$ 250,000 Ba2* Rogers Cantel, Inc., Sr. Sub. Notes, 8.800% due 10/1/07 $238,750
RSL Communications PLC, Guaranteed Sr. Notes:
70,000 B2* 9.125% due 3/1/08 54,600
100,000 B2* 10.500% due 11/15/08 83,500
400,000 B2* 12.875% due 3/1/10 (b) 384,000
70,000 B- Satelites Mexicanos S.A., Sr. Notes, Series B,
10.125% due 11/1/04 52,675
Spectrasite Holdings Inc.:
60,000 B- Sr. Discount Notes, step bond to yield
12.645% due 4/15/09 (b) 33,300
20,000 B- Sr. Notes, 10.750% due 3/15/10 (b) 19,800
200,000 B- Telecommunications Techniques Co., LLC, Guaranteed
Sr. Sub. Notes, 9.750% due 5/15/08 183,000
230,000 B3* TeleCorp PCS, Inc., Sr. Discount Notes, step bond to yield
11.441% due 4/15/09 151,800
80,000 NR TeleHub Communications Corp., Sr. Discount Notes,
step bond to yield 17.051% due 7/31/05 6,800
100,000 B Time Warner Telecom LLC Inc., Sr. Notes,
9.750% due 7/15/08 98,500
45,000 B Transtel Pass Through Trust, Trust Certificates,
12.500% due 11/1/07 (b) 27,000
310,000 CCC Ubiquitel Operating Co., Guaranteed Sr. Discount Notes,
step bond to yield 13.577% due 4/15/10 (b)(c) 179,800
United Pan-Europe Communications NV:
Sr. Discount Notes, Series B:
570,000 B Step bond to yield 13.206% due 8/1/09 282,150
411,000 B Step bond to yield 13.818% due 2/1/10 (b) 199,335
100,000 B Sr. Notes, Series B, 10.875% due 8/1/09 91,000
235,000 CCC+ US Unwired Inc., Sr. Discount Notes, step bond to yield
13.208% due 11/1/09 132,775
80,000 NR US Xchange, LLC, Sr. Notes, 15.000% due 7/1/08 59,600
140,000 B- VersaTel Telecom International NV, Sr. Notes,
13.250% due 5/15/08 142,800
Viasystems, Inc., Sr. Sub. Notes:
220,000 B 9.750% due 6/1/07 190,850
140,000 B Series B, 9.750% due 6/1/07 121,450
Viatel, Inc.:
1,180,000 B- Sr. Discount Notes, step bond to yield
13.729% due 4/15/08 660,800
198,000 B- Sr. Dollar Notes, 11.500% due 3/15/09 182,160
450,000 B2* VoiceStream Wireless Corp., Sr. Notes,
10.375% due 11/15/09 (b) 459,000
200,000 NR WebLink Wireless, Inc., Sr. Discount Notes,
step bond to yield 17.016% due 2/1/08 91,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 39
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Telecommunications -- 10.4% (continued)
Winstar Communications Inc.:
$ 223,942 B- Sr. Discount Notes, step bond to yield
18.881% due 4/15/10 (b) $ 101,334
361,815 B- Sr. Notes, 12.750% due 4/15/10 (b) 347,343
70,000 B- World Access, Inc., Sr. Notes, Series B,
13.250% due 1/15/08 63,700
-------------------------------------------------------------------------------------------------
15,430,165
-------------------------------------------------------------------------------------------------
Telephone -- 0.8%
90,000 NR Bestel S.A., Sr. Discount Notes, step bond to yield
14.941% due 5/15/05 68,625
245,000 B BTI Telecom Corp., Sr. Notes, 10.500% due 9/15/07 197,837
Call-Net Enterprises, Inc.:
300,000 B+ Sr. Discount Notes, step bond to yield
11.331% due 8/15/08 118,500
Sr. Notes:
110,000 B+ 8.000% due 8/15/08 69,850
50,000 B+ 9.375% due 5/15/09 34,250
175,000 NR Maxcom Telecomunicaciones, Sr. Notes,
13.750% due 4/1/07 (b)(c) 173,688
Netia Holdings B.V.:
130,000 B Guaranteed Sr. Discount Notes, step bond to yield
13.004% due 11/1/07 91,975
40,000 B Guaranteed Sr. Notes, 10.250% due 11/1/07 33,800
NEXTLINK Communications Inc.:
40,000 B Sr. Discount Notes, step bond to yield
11.731% due 12/1/09 (b) 22,200
280,000 B Sr. Notes, 10.500% due 12/1/09 (b) 271,600
170,000 NR Startec Global Communications Corp., Sr. Notes,
12.000% due 5/15/08 138,550
-------------------------------------------------------------------------------------------------
1,220,875
-------------------------------------------------------------------------------------------------
Textiles/Apparel -- 0.4%
200,000 B Galey & Lord Inc., Sr. Sub. Notes, 9.125% due 3/1/08 86,000
340,000 BB- Guess Jeans Inc., Sr. Sub. Notes, 9.500% due 8/15/03 343,400
85,000 NR Kasper ASL Ltd., Sr. Notes, 12.750% due 3/31/04 48,025
William Carter Co., Sr. Sub. Notes:
15,000 B- 10.375% due 12/1/06 12,825
50,000 NR 12.000% due 10/1/08 49,750
-------------------------------------------------------------------------------------------------
540,000
-------------------------------------------------------------------------------------------------
Transportation -- 0.3%
100,000 BB- Eletson Holdings Inc., Notes, 9.250% due 11/15/03 92,500
40,000 BB+ International Shipholding Corp., Sr. Notes,
7.750% due 10/15/07 35,200
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
40 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Transportation -- 0.3% (continued)
$ 210,000 Ca* Kitty Hawk Inc., Sr. Secured Notes, 9.950% due 11/15/04 (d) $ 53,550
180,000 NR Pegasus Shipping (Hellas) Ltd., step bond to yield
16.592% due 6/20/08 (d) 9,000
245,000 B+ TFM S.A. de C.V., Guaranteed Sr. Discount Notes,
step bond to yield 13.712% due 6/15/09 164,763
Transportacion Maritima Mexicana S.A. de C.V., Sr. Notes:
25,000 BB- 9.250% due 5/15/03 21,500
120,000 BB- 10.000% due 11/15/06 99,300
-------------------------------------------------------------------------------------------------
475,813
-------------------------------------------------------------------------------------------------
Utilities -- 1.5%
5,000 BBB- CalEnergy Co., Inc, Sr. Notes, 7.630% due 10/15/07 4,813
Calpine Corp., Sr. Notes:
330,000 BB+ 8.750% due 7/15/07 327,113
160,000 BB+ 7.875% due 4/1/08 151,400
Midland Funding, Sr. Secured Lease Obligations:
440,000 BB Series A, 11.750% due 7/23/05 464,200
575,000 BB Series B, 13.250% due 7/23/06 646,875
10,639 BBB- Series C-91, 10.330% due 7/23/02 11,039
122,752 BBB- Series C-94, 10.330% due 7/23/02 127,355
Northeast Utilities, Notes:
74,666 BB+ 8.380% due 3/1/05 72,520
14,939 BB+ 8.580% due 12/1/06 14,454
250,000 B- Panda Global Energy Co., Sr. Secured Notes,
12.500% due 4/15/04 151,250
240,000 BB- York Power Funding, Guaranteed Notes,
12.000% due 10/30/07 (b) 235,200
-------------------------------------------------------------------------------------------------
2,206,219
-------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS AND NOTES
(Cost -- $84,797,022) 74,284,749
=================================================================================================
SHARES SECURITY VALUE
=================================================================================================
PURCHASED OPTION (f) -- 0.0%
1,608,000 EUR/USD Call @ $0.94, Expire 5/1/00 (Cost -- $4,520) 877
=================================================================================================
COMMON STOCK -- 0.2%
Agriculture -- 0.0%
2,202 PSF Holdings LLC, Class A Shares (f) 22,025
-------------------------------------------------------------------------------------------------
Broadcasting -- 0.1%
1,600 AMFM Inc. (f) 106,200
1,600 Spanish Broadcasting System, Inc., Class A Shares (f) 29,900
-------------------------------------------------------------------------------------------------
136,100
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 41
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Products -- 0.0%
44 Mothers Work, Inc. (f) $ 528
-------------------------------------------------------------------------------------------------
Foods -- 0.0%
25 AmeriKing, Inc. (f) 250
-------------------------------------------------------------------------------------------------
Telecommunications -- 0.1%
33,576 Celcaribe S.A. 4,197
188 MGC Communications, Inc. (f) 9,212
641 Viatel, Inc. (f) 24,518
200 VoiceStream Wireless Corp. (f) 19,800
-------------------------------------------------------------------------------------------------
57,727
-------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost-- $216,735) 216,630
=================================================================================================
PREFERRED STOCK -- 2.5%
Banking -- 0.3%
5,400 California Federal Preferred Capital Corp.,
9.125% Noncumulative Exchangeable, Series A 120,150
3,500 Chevy Chase Preferred Capital Corp.,
10.375% Noncumulative Exchangeable, Series A 168,000
2,500 First Republic Preferred Capital Corp.,
10.500% Noncumulative Exchangeable, Series A 225,000
-------------------------------------------------------------------------------------------------
513,150
-------------------------------------------------------------------------------------------------
Broadcasting -- 0.4%
2,058 Citadel Broadcasting Co., 13.250% Exchangeable, Series B 224,928
Paxson Communications Corp.:
11 9.750% Convertible 104,553
26 13.250% Cumulative Junior Exchangeable 269,984
-------------------------------------------------------------------------------------------------
599,465
-------------------------------------------------------------------------------------------------
Cable -- 0.2%
CSC Holdings Inc.:
2,974 11.125% Redeemable Exchangeable, Series M 321,192
50 11.750% Redeemable Exchangeable, Series H 5,387
-------------------------------------------------------------------------------------------------
326,579
-------------------------------------------------------------------------------------------------
Energy -- 0.1%
1,667 R&B Falcon Corp., 13.875% Sr. Cumulative Redeemable 185,886
-------------------------------------------------------------------------------------------------
Food -- 0.0%
1,507 AmeriKing Inc., 13.000% Sr. Exchangeable 16,577
-------------------------------------------------------------------------------------------------
Health Care -- 0.1%
800 Fresenius Medical Capital Trust I, 9.000% Guaranteed
Trust Preferred Securities 75,400
-------------------------------------------------------------------------------------------------
Metals -- 0.3%
7,000 LTV Corp., 8.250% Cumulative Convertible (b) 387,625
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
42 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Telecommunications -- 1.1%
867 Concentric Network Corp., 13.500% Sr. Redeemable
Exchangeable, Series B $ 88,527
Dobson Communications Corp.:
165 12.250% Sr. Redeemable Exchangeable 166,650
2,314 13.000% Sr. Exchangeable 237,573
5,760 Global Telesystems Inc., 7.250% Cumulative Convertible (b) 166,320
110 InterAct Electronic Marketing Inc.,
14.000% Cumulative Convertible 110
277 Intermedia Communications Inc., 13.500% Redeemable
Exchangeable, Series B 264,707
175 IXC Communications, Inc., 12.500% Junior Exchangeable,
Series B 180,733
Nextel Communications, Inc.:
970 13.000% Exchangeable, Series D 99,667
20 11.125% Exchangeable, Series E 1,935
2,980 NEXTLINK Communications, Inc.,
14.000% Sr. Exchangeable Redeemable 144,569
950 RSL Communications Ltd., 7.500% Convertible (b) 37,288
1,900 Rural Cellular Corp., 12.500% Exchangeable 184,300
-------------------------------------------------------------------------------------------------
1,572,379
-------------------------------------------------------------------------------------------------
Utilities -- 0.0%
1,201 Public Service Co. of New Hampshire,
10.600% Cumulative, Series A 30,025
-------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost -- $3,877,106) 3,707,086
=================================================================================================
WARRANTS (f) -- 0.2%
Broadcasting -- 0.0%
320 Paxson Communications Corp., Expire 6/30/03 (b) 960
720 Sirius Satellite Radio Inc., Expire 5/15/09 (b) 46,800
-------------------------------------------------------------------------------------------------
47,760
-------------------------------------------------------------------------------------------------
Cable -- 0.0%
975 DIVA Systems Corp., Expire 3/1/08 (b) 23,400
275 UIH Australia Pacific Inc., Expire 5/15/06 8,250
-------------------------------------------------------------------------------------------------
31,650
-------------------------------------------------------------------------------------------------
Chemicals -- 0.0%
40 Sterling Chemicals Holdings Inc., Expire 8/15/08 720
-------------------------------------------------------------------------------------------------
Energy -- 0.0%
1,500 R&B Falcon Corp., Expire 5/1/09 (b) 52,500
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 43
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
SHARES SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Health Care -- 0.0%
110 Mediq, Inc., Expire 6/1/09 (b) $ 1,100
-------------------------------------------------------------------------------------------------
Hotel/Casino -- 0.0%
85 Club Regina Resorts Inc., Expire 12/1/04 1
100 Epic Resorts LLC, Expire 6/15/05 (b) 1
-------------------------------------------------------------------------------------------------
2
-------------------------------------------------------------------------------------------------
Technology -- 0.1%
60 Cybernet Internet Services International, Expire 7/1/09 (b) 6,300
110 Interact Electronic Marketing Inc., Expire 12/15/09 1
110 InterAct Systems Inc., Expire 8/1/03 1
17,319 Intira Corp., Expire 2/1/10 (b) 2
1,080 Rhythms NetConnections Inc., Expire 5/15/08 (b) 82,538
-------------------------------------------------------------------------------------------------
88,842
-------------------------------------------------------------------------------------------------
Telecommunications -- 0.1%
90 Birch Telecom Inc., Expire 6/15/08 (b) 4,995
51 CellNet Data Systems, Inc., Expire 10/1/07 (b) 159
140 FirstWorld Communications, Inc., Expire 4/15/08 (b) 18,900
40 Globalstar Telecommunications, Ltd., Expire 2/15/04 (b) 5,000
495 ICG Communications Inc., Expire 10/15/05 12,004
45 International Wireless Communications Holdings, Inc.,
Expire 8/15/01 (b) 0
250 KMC Telecom Holdings, Inc., Expire 1/31/08 (b) 750
215 KNOLOGY Holdings, Inc., Expire 10/15/07 (b) 914
110 Loral Space & Communications Ltd., Expire 1/15/07 1,320
125 McCaw International Ltd., Expire 4/15/07 2,266
50 OnePoint Communications Corp., Expire 6/1/08 1,000
110 Orbital Imaging Corp., Expire 3/1/05 (b) 2,214
350 Pathnet, Inc., Expire 4/15/08 (b) 3,500
80 TeleHub Communications Corp., Expire 7/31/05 (b) 40
130 VersaTel Telecom International NV, Expire 5/15/08 69,550
300 Wireless One Inc., Expire 10/19/00 75
-------------------------------------------------------------------------------------------------
122,687
-------------------------------------------------------------------------------------------------
Telephone -- 0.0%
90 Bestel S.A., Expire 5/15/05 990
170 Startec Global Communications Corp., Expire 5/15/08 3,060
-------------------------------------------------------------------------------------------------
4,050
-------------------------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost -- $174,885) 349,311
=================================================================================================
TOTAL HIGH-YIELD SECTOR
(Cost -- $89,070,268) 78,558,653
=================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
44 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
INTERNATIONAL SECTOR -- 18.1%
=================================================================================================
BONDS (e) -- 18.1%
Argentina -- 0.9%
Republic of Argentina:
1,017,000USD BB Global Bonds, 11.750% due 4/7/09 $1,001,109
530,000USD BB Par Bonds, 6.000% due 3/31/23 371,000
-------------------------------------------------------------------------------------------------
1,372,109
-------------------------------------------------------------------------------------------------
Australia -- 0.7%
1,560,000 AAA Commonwealth of Australia, Bonds, 7.500% due 9/15/09 976,707
-------------------------------------------------------------------------------------------------
Brazil -- 2.0%
Federal Republic of Brazil:
2,173,438USD B+ Capitalization Bonds, 8.000% due 4/15/14 1,560,121
Global Bonds:
1,213,147USD B+ 14.500% due 10/15/09 1,280,477
220,000USD B+ 12.750% due 1/15/20 211,145
-------------------------------------------------------------------------------------------------
3,051,743
-------------------------------------------------------------------------------------------------
Bulgaria -- 0.5%
Republic of Bulgaria:
75,000USD B2* Past Due Interest Bonds, 7.063% due 7/28/11 56,906
Secured Discount Bonds:
615,000USD B2* 2.750% due 7/28/12 428,962
255,000USD B2* 7.063% due 7/28/24 195,553
-------------------------------------------------------------------------------------------------
681,421
-------------------------------------------------------------------------------------------------
Canada -- 1.4%
Government of Canada, Bonds:
2,935,000 Aa1* 5.750% due 6/1/29 1,972,909
120,000 AAA Series WB60, 7.250% due 6/1/07 85,695
-------------------------------------------------------------------------------------------------
2,058,604
-------------------------------------------------------------------------------------------------
Colombia -- 0.2%
315,000USD BB+ Republic of Colombia, Bonds, 11.750% due 2/25/25 268,144
-------------------------------------------------------------------------------------------------
Denmark -- 1.8%
Kingdom of Denmark, Bonds:
16,000,000 Aaa* 6.000% due 11/15/09 2,001,980
4,425,000 AAA 7.000% due 11/10/24 621,658
-------------------------------------------------------------------------------------------------
2,623,638
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 45
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT+ RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Germany -- 3.3%
Federal Republic of Germany, Bonds:
275,000EUR AAA Series 98, 5.625% due 1/4/28 $ 248,052
5,295,000EUR Aaa* Series 132, 4.125% due 8/27/04 4,670,455
-------------------------------------------------------------------------------------------------
4,918,507
-------------------------------------------------------------------------------------------------
Mexico -- 1.5%
United Mexican States, Bonds:
770,000USD Baa3* 11.375% due 9/15/16 872,987
1,230,000USD Baa3* Series XW, 10.375% due 2/17/09 1,295,190
-------------------------------------------------------------------------------------------------
2,168,177
-------------------------------------------------------------------------------------------------
Morocco -- 0.1%
225,000 NR Kingdom of Morocco, Loan Participations Notes,
Tranche A, 6.844% due 1/1/09 200,813
-------------------------------------------------------------------------------------------------
New Zealand -- 0.6%
1,990,000USD AAA Government of New Zealand, Bonds, Series 709,
7.000% due 7/15/09 965,779
-------------------------------------------------------------------------------------------------
Philippines -- 0.3%
Republic of Philippines:
240,000USD BB+ Bonds, 9.875% due 1/15/19 213,000
260,000USD BB+ Notes, 10.625% due 3/16/25 241,475
-------------------------------------------------------------------------------------------------
454,475
-------------------------------------------------------------------------------------------------
Russia -- 1.4%
Russian Federation, Bonds:
870,000USD B3* 10.000% due 6/26/07 (b) 626,400
575,000USD B3* 12.750% due 6/24/28 (b) 469,344
3,835,000USD NR Vnesheconombank, Principal Loans, 6.906% due 12/15/20 1,054,625
-------------------------------------------------------------------------------------------------
2,150,369
-------------------------------------------------------------------------------------------------
South Korea -- 0.1%
190,000USD BBB Republic of South Korea, Bonds, 8.875% due 4/15/08 196,412
-------------------------------------------------------------------------------------------------
Turkey -- 0.2%
215,000USD B+ Republic of Turkey, Sr. Notes, 12.375% due 6/15/09 232,200
-------------------------------------------------------------------------------------------------
United Kingdom -- 2.6%
United Kingdom Gilt Bonds:
985,000 AAA 8.000% due 12/7/00 1,557,510
860,000 AAA 9.750% due 8/27/02 1,447,598
310,000 AAA 10.000% due 9/8/03 541,843
200,000 A Residential Mortgage Securities, Collateralized Mortgage
Obligations, Series 8, Class M, 7.350% due 5/12/37 (b) 307,952
-------------------------------------------------------------------------------------------------
3,854,903
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
46 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
PUTNAM DIVERSIFIED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
Venezuela -- 0.5%
Republic of Venezuela:
295,000USD B Bonds, 9.250% due 9/15/27 $ 188,652
380,950USD B Debt Conversion Bonds, 7.000% due 12/18/07 298,570
340,000USD B Par Bonds, Series DL, 6.750% due 3/31/20 237,363
-------------------------------------------------------------------------------------------------
724,585
-------------------------------------------------------------------------------------------------
TOTAL BONDS
(Cost -- $27,306,029) 26,898,586
=================================================================================================
TOTAL INTERNATIONAL SECTOR
(Cost -- $27,306,029) 26,898,586
=================================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $156,258,550) 144,970,844
=================================================================================================
<CAPTION>
FACE
AMOUNT SECURITY VALUE
=================================================================================================
<S> <C> <C> <C>
REPURCHASE AGREEMENT -- 2.5%
$3,792,000 J.P. Morgan Securities, Inc., 5.710% due 5/1/00;
Proceeds at maturity -- $ 3,793,804; (Fully collateralized
by U.S. Treasury Bonds, 7.500% due 11/15/16;
Market value -- $3,867,840) (Cost -- $3,792,000) 3,792,000
=================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $160,050,550**) $148,762,844
=================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, except those
identified by an asterisk (*), which are rated by Moody's Investors
Service, Inc.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(c) Security has been issued with attached warrants.
(d) Security is in default.
(e) Security has been segregated by Custodian for open futures contracts
commitments.
(f) Non-income producing security.
+ Face amount denominated in local currency unless otherwise indicated.
** Aggregate cost for Federal income tax purposes is substantially the same.
Currency abbreviations used in this schedule:
---------------------------------------------
EUR -- Euro
USD -- United States Dollar
See page 48 for definitions of ratings.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 47
<PAGE>
--------------------------------------------------------------------------------
Bond Ratings (unaudited)
--------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard & Poor's") -- Ratings from "AA" to
"CC" may be modified by the addition of a plus (+) or minus (-) sign to show
relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and repay
principal and differs from the highest rated issue only in a small
degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than bonds
in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for bonds in this category than in higher
rated categories.
BB, B, -- Bonds rated "BB", "B", "CCC", "CC", and "C" are regarded, on balance,
CCC, CC as predominantly speculative with respect to capacity to pay interest
and C and repay principal in accordance with the terms of the obligation.
"BB" represents the lowest degree of speculation and "C" the highest
degree of speculation. While such bonds will likely have some quality
and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions.
Moody's Investors Service, Inc. ("Moody's") -- Numerical modifiers 1, 2, and 3
may be applied to each generic rating from "Aa" to "Ca", where 1 is the highest
and 3 the lowest rating within its generic category.
Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong
position of such issues.
Aa -- Bonds rated "Aa" are judged to be of high quality by all standards.
Together with the "Aaa" group they comprise what are generally known
as high grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in "Aaa" securities or
fluctuation of protective elements may be of greater amplitude or
there may be other elements present which make the long-term risks
appear somewhat larger than in "Aaa" securities.
A -- Bonds rated "A" possess many favorable investment attributes and are
to be considered as upper medium grade which suggest a susceptibility
to impairment some time in the future.
Baa -- Bonds rated "Baa" are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba -- Bonds rated "Ba" are judged to have speculative elements; their future
cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class.
B -- Bonds rated "B" generally lack characteristics of desirable
investments. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of
time may be small.
Caa -- Bonds rated "Caa" are of poor standing. These issues may be in
default, or present elements of danger may exist with respect to
principal or interest.
Ca -- Bonds rated "Ca" represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked
shortcomings.
NR -- Indicates that the bond is not rated by Standard & Poor's or Moody's.
--------------------------------------------------------------------------------
48 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Putnam
Smith Barney Diversified
High Income Income
Portfolio Portfolio
================================================================================================
<S> <C> <C>
ASSETS:
Investments, at value (Cost -- $188,239,912 $ 174,530,923 $ 144,970,844
and $156,258,550, respectively)
Repurchase agreement, at value (Cost -- $19,708,000
and $3,792,000, respectively) 19,708,000 3,792,000
Cash 192 --
Foreign currency, at value (Cost -- $301,673) -- 187,205
Dividends and interest receivable 4,642,321 3,643,115
Receivable for open forward foreign currency
contracts (Note 5) 1,423,972 1,200,957
Receivable for securities sold -- 262,843
------------------------------------------------------------------------------------------------
Total Assets 200,305,408 154,056,964
------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 847,264 1,495,656
Payable for open forward foreign currency
contracts (Note 5) 449,020 2,004,510
Management fees payable 246,459 85,705
Payable to bank -- 472
Payable to broker -- variation margin -- 102,023
Accrued expenses 38,330 34,252
------------------------------------------------------------------------------------------------
Total Liabilities 1,581,073 3,722,618
------------------------------------------------------------------------------------------------
Total Net Assets $ 198,724,335 $ 150,334,346
================================================================================================
NET ASSETS:
Par value of capital shares $ 168 $ 132
Capital paid in excess of par value 205,038,667 153,483,058
Undistributed net investment income 28,579,070 18,890,405
Accumulated net realized loss from security
transactions and foreign currencies (22,144,042) (9,866,340)
Net unrealized depreciation of investments
and foreign currencies (12,749,528) (12,172,909)
------------------------------------------------------------------------------------------------
Total Net Assets $ 198,724,335 $ 150,334,346
================================================================================================
Shares Outstanding 16,768,325 13,200,604
------------------------------------------------------------------------------------------------
Net Asset Value $11.85 $11.39
------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 49
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
Putnam
Smith Barney Diversified
High Income Income
Portfolio Portfolio
====================================================================================================
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 10,973,341 $ 6,953,174
Dividends 61,968 208,127
----------------------------------------------------------------------------------------------------
Total Investment Income 11,035,309 7,161,301
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 602,547 581,414
Shareholder communications 14,684 13,741
Audit and legal 11,250 13,792
Pricing service fees 8,643 25,170
Custody 8,410 11,733
Shareholder and system servicing fees 7,889 8,137
Directors' fees 3,006 2,868
Registration fees -- 727
Other 4,258 4,094
----------------------------------------------------------------------------------------------------
Total Expenses 660,687 661,676
----------------------------------------------------------------------------------------------------
Net Investment Income 10,374,622 6,499,625
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, OPTIONS, FOREIGN CURRENCIES
AND FUTURES CONTRACTS (NOTES 3, 4, 5 AND 7):
Realized Gain (Loss) From:
Security transactions (excluding short-term securities) (6,747,747) (2,305,957)
Options purchased -- (17,765)
Foreign currency transactions 61,534 (416,909)
Futures contracts -- 48,800
----------------------------------------------------------------------------------------------------
Net Realized Loss (6,686,213) (2,691,831)
----------------------------------------------------------------------------------------------------
Change in Net Unrealized Depreciation of Investments,
Options, Foreign Currencies and Futures Contracts:
Beginning of period (11,237,193) (10,545,958)
End of period (12,749,528) (12,172,909)
----------------------------------------------------------------------------------------------------
Increase in Net Unrealized Depreciation (1,512,335) (1,626,951)
----------------------------------------------------------------------------------------------------
Net Loss on Investments, Options, Foreign
Currencies and Futures Contracts (8,198,548) (4,318,782)
----------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 2,176,074 $ 2,180,843
====================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
50 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
<TABLE>
<CAPTION>
Smith Barney High Income Portfolio 2000 1999
===============================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 10,374,622 $ 17,905,450
Net realized loss (6,686,213) (12,233,359)
(Increase) decrease in net unrealized depreciation (1,512,335) 2,768,731
-----------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,176,074 8,440,822
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (13,646,737)
-----------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (13,646,737)
-----------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 11):
Net proceeds from sale of shares 13,478,564 42,775,495
Net asset value of shares issued
for reinvestment of dividends -- 13,646,737
Cost of shares reacquired (15,934,694) (12,470,554)
-----------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Fund Share Transactions (2,456,130) 43,951,678
-----------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (280,056) 38,745,763
NET ASSETS:
Beginning of period 199,004,391 160,258,628
-----------------------------------------------------------------------------------------------
End of period* $ 198,724,335 $ 199,004,391
===============================================================================================
* Includes undistributed net investment income of: $28,579,070 $18,142,914
===============================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 51
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
<TABLE>
<CAPTION>
Putnam Diversified Income Portfolio 2000 1999
=============================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 6,499,625 $ 12,588,253
Net realized loss (2,691,831) (5,339,115)
Increase in net unrealized depreciation (1,626,951) (4,393,324)
---------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,180,843 2,855,814
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (8,971,238)
---------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (8,971,238)
---------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 11):
Net proceeds from sale of shares 3,967,727 15,890,169
Net asset value of shares issued
for reinvestment of dividends -- 8,971,238
Cost of shares reacquired (11,920,905) (19,533,917)
---------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Fund Share Transactions (7,953,178) 5,327,490
---------------------------------------------------------------------------------------------
Decrease in Net Assets (5,772,335) (787,934)
NET ASSETS:
Beginning of period 156,106,681 156,894,615
---------------------------------------------------------------------------------------------
End of period* $ 150,334,346 $ 156,106,681
=============================================================================================
* Includes undistributed net investment income of: $ 18,890,405 $ 12,807,689
=============================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
52 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Smith Barney High Income and Putnam Diversified Income Portfolios
("Portfolio(s)") are separate investment portfolios of the Travelers Series Fund
Inc. ("Fund"). The Fund, a Maryland corporation, is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company and consists of these Portfolios and thirteen
other separate investment portfolios: AIM Capital Appreciation, Alliance Growth,
Van Kampen Enterprise, Smith Barney Large Cap Value, Smith Barney International
Equity, Smith Barney Pacific Basin, Travelers Managed Income, INVESCO Global
Strategic Income, MFS Total Return, Smith Barney Money Market, Smith Barney
Large Capitalization Growth, Smith Barney Aggressive Growth and Smith Barney Mid
Cap Portfolios. Shares of the Fund are offered only to insurance company
separate accounts which fund certain variable annuity and variable life
insurance contracts. The financial statements and financial highlights for the
other portfolios are presented in separate shareholder reports.
The significant accounting policies consistently followed by the Portfolios are:
(a) security transactions are accounted for on trade date; (b) securities traded
on national securities markets are valued at the closing prices on such markets;
securities for which no sales price was reported and U.S. government agencies
and obligations are valued at the mean between the bid and ask prices; (c)
securities for which market quotations are not available will be valued in good
faith at fair value by or under the direction of the Board of Directors; (d)
securities maturing within 60 days are valued at cost plus accreted discount, or
minus amortized premium, which approximates value; (e) dividend income is
recorded on the ex-dividend date; foreign dividends are recorded on the
ex-dividend date or as soon as practical after the Portfolio determines the
existence of a dividend declaration after exercising reasonable due diligence;
(f) interest income, adjusted for amortization of premium and accretion of
discount is recorded on an accrual basis; (g) gains or losses on the sale of
securities are calculated by using the specific identification method; (h)
dividends and distributions to shareholders are recorded on the ex-dividend
date; (i) the accounting records of the Portfolios are maintained in U.S.
dollars. All assets and liabilities denominated in foreign currencies are
translated into U.S. dollars based on the rate of exchange of such currencies
against U.S. dollars on the date of valuation. Purchases and sales of
securities, and income and expenses are translated at the rate of exchange
quoted on the respective date that such transactions are recorded. Differences
between income or expense amounts recorded and collected or paid are adjusted
when reported by the custodian bank; (j) the character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 53
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
accounting principles. At October 31, 1999, reclassifications were made to the
Portfolios' capital accounts to reflect permanent book/tax differences and
income and gains available for distribution under income tax regulations. Net
investment income, net realized gains and net assets were not affected by this
change; (k) the Portfolios intend to comply with the requirements of the
Internal Revenue Code of 1986, as amended, pertaining to regulated investment
companies and to make distributions of taxable income sufficient to relieve them
from substantially all Federal income and excise taxes; and (l) estimates and
assumptions are required to be made regarding assets, liabilities and changes in
net assets resulting from operations when financial statements are prepared.
Changes in the economic environment, financial markets and any other parameters
used in determining these estimates could cause actual results to differ.
The Portfolios may enter into foreign currency exchange contracts in order to
hedge against foreign currency risk. These contracts are marked-to-market daily,
by recognizing the difference between the contract exchange rate and the current
market rate as an unrealized gain or loss. Realized gains or losses are
recognized when contracts are settled or closed.
In addition, the Portfolios may enter into futures contracts. During the period
the futures contract is open, changes in the value of the contract are
recognized as unrealized gains or losses by "marking to market" on a daily basis
to reflect the market value of the contract at the end of each day's trading.
2. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as the investment manager of the Smith Barney High Income
Portfolio ("SBHI"). SBHI pays SSBC a management fee calculated at an annual rate
of 0.60% of the average daily net assets of the Portfolio. In addition,
Travelers Investment Adviser, Inc. ("TIA"), an affiliate of SSBC, acts as the
investment manager of the Putnam Diversified Income Portfolio ("PDIP"). PDIP
pays TIA a management fee calculated at an annual rate of 0.75% of the average
daily net assets of the Portfolio. These fees are calculated daily and paid
monthly.
TIA has entered into a sub-advisory agreement with Putnam Investment Management,
Inc. ("PIM"). Pursuant to the sub-advisory agreement, PIM is responsible for the
day-to-day portfolio operations and investment decisions for PDIP and is
compensated for such service at the annual rate of 0.35% of the average daily
net assets of PDIP. This fee is calculated daily and paid monthly.
TIA has entered into a Sub-Administrative Services Agreement with SSBC. TIA pays
SSBC, as sub-administrator, a fee calculated at an annual rate of 0.10% of the
average daily net assets of PDIP.
--------------------------------------------------------------------------------
54 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
Citi Fiduciary Trust Company ("CFTC"), formerly known as Smith Barney Private
Trust Company, another subsidiary of Citigroup, acts as the Fund's transfer
agent and PFPC Global Fund Services ("PFPC") acts as the sub-transfer agent.
CFTC receives fees and asset-based fees that vary according to the account size
and type of account. PFPC is responsible for shareholder recordkeeping and
financial processing for all shareholder accounts and is paid by CFTC. For the
six months ended April 30, 2000, the Portfolios paid transfer agent fees of
$5,000 to CFTC.
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions. During the six months
ended April 30, 2000, SSB did not receive any brokerage commissions.
All officers and one Director of the Fund are employees of SSB.
3. Investments
During the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
SBHI PDIP
================================================================================
Purchases $61,112,625 $66,789,095
--------------------------------------------------------------------------------
Sales 65,382,777 65,021,266
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
SBHI PDIP
================================================================================
Gross unrealized appreciation $ 2,160,246 $ 2,768,570
Gross unrealized depreciation (15,869,235) (14,056,276)
--------------------------------------------------------------------------------
Net unrealized depreciation $(13,708,989) $(11,287,706)
================================================================================
4. Option Contracts
Premiums paid when put or call options are purchased by the Portfolios,
represent investments, which are marked-to-market daily and are included in the
schedules of investments. When a purchased option expires, the Portfolios will
realize a loss in the amount of the premium paid. When the Portfolios enter into
closing sales transaction, the Portfolios will realize a gain or loss depending
on whether the proceeds from the closing sales transaction are greater or less
than the premium paid for the option. When the Portfolios exercise a put option,
they will realize a gain or loss from the sale of the underlying security and
the proceeds from such sale will be decreased by the premium originally paid.
When the Portfolios exercise a call option, the cost of the security which the
Portfolios purchase upon exercise will be increased by the premium originally
paid.
At April 30, 2000, PDIP had 1,608 purchased call options with a total cost of
$4,520.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 55
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
When the Portfolios write a covered call or put option, an amount equal to the
premium received by the Portfolios is recorded as a liability, the value of
which is marked-to-market daily. When a written option expires, the Portfolios
realize a gain. When the Portfolios enter into a closing purchase transaction,
the Portfolios realize a gain or loss depending upon whether the cost of the
closing transaction is greater or less than the premium originally received
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is eliminated. When a written call option
is exercised, the cost of the security sold will be decreased by the premium
originally received. When a written put option is exercised, the amount of the
premium originally received will reduce the cost of the security which the
Portfolios purchased upon exercise. When written index options are exercised,
settlement is made in cash.
The risk associated with purchasing options is limited to the premium originally
paid. The Portfolios enter into options for hedging purposes. The risk in
writing a covered call option is that the Portfolios give up the opportunity to
participate in any increase in the price of the underlying security beyond the
exercise price. The risk in writing a put option is that the Portfolios are
exposed to the risk of loss if the market price of the underlying security
declines.
During the six months ended April 30, 2000, the Portfolios had no open written
call or put option contracts.
5. Foreign Currency Exchange Contracts
At April 30, 2000, the Portfolios had open foreign currency exchange contracts
as described below. The Portfolios record realized gains or losses at the time
the forward contract is offset by entry into a closing transaction or settlement
of the contract. The Portfolios bear the market risk that arises from changes in
foreign currency exchange rates. The unrealized gain or loss on the contracts is
reflected in the accompanying financial statements as follows:
Smith Barney High Income Portfolio
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
================================================================================
To Sell:
British Pound 2,126,000 $3,328,225 6/22/00 $ 100,631
Canadian Dollar 630,000 425,627 6/08/00 3,382
Euro 850,000 777,176 6/15/00 110,131
Euro 1,146,660 1,048,419 6/15/00 151,073
Euro 425,000 388,588 6/15/00 42,758
Euro 1,000,000 914,324 6/15/00 120,576
Euro 6,969,938 6,372,783 6/15/00 737,251
Euro 1,876,375 1,715,615 6/15/00 158,170
--------------------------------------------------------------------------------
1,423,972
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
56 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
Smith Barney High Income Portfolio (continued)
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
===============================================================================================
<S> <C> <C> <C> <C>
To Buy:
Euro 464,625 $ 424,818 6/15/00 $ (49,193)
Euro 555,187 507,621 6/15/00 (60,141)
Euro 103,750 94,861 6/15/00 (13,308)
Euro 274,938 251,382 6/15/00 (33,783)
Euro 1,146,660 1,048,419 6/15/00 (82,761)
Euro 425,000 388,588 6/15/00 (28,720)
Euro 1,131,438 1,034,501 6/15/00 (71,140)
Euro 735,000 672,028 6/15/00 (41,804)
Euro 795,375 727,231 6/15/00 (41,956)
Euro 731,500 668,828 6/15/00 (26,214)
-----------------------------------------------------------------------------------------------
(449,020)
-----------------------------------------------------------------------------------------------
Net Unrealized Gain on Forward
Foreign Currency Contracts $ 974,952
===============================================================================================
<CAPTION>
Putnam Diversified Income Portfolio
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
===============================================================================================
<S> <C> <C> <C> <C>
To Sell:
Australian Dollar 714,631 $ 417,185 6/21/2000 $ 50,898
Australian Dollar 3,298,400 1,925,530 6/21/2000 104,965
Canadian Dollar 10,900 7,367 6/21/2000 213
Canadian Dollar 1,358,000 917,789 6/21/2000 20,316
British Pound 3,246,700 5,082,605 6/21/2000 276,073
British Pound 247,900 388,080 6/21/2000 3,850
British Pound 494,000 773,341 6/21/2000 3,993
British Pound 494,000 773,341 6/21/2000 895
British Pound 496,000 776,472 6/21/2000 11,067
Danish Krone 11,152,000 1,367,228 6/21/2000 84,289
Danish Krone 10,761,900 1,319,402 6/21/2000 79,337
Euro 1,254,950 1,147,864 6/21/2000 121,530
Euro 644,500 589,504 6/21/2000 17,060
Euro 804,000 735,394 6/21/2000 22,875
Euro 804,000 735,394 6/21/2000 2,171
Japanese Yen 21,037,485 196,559 6/21/2000 7,429
Japanese Yen 302,074,328 2,822,368 6/21/2000 97,071
Japanese Yen 88,365,850 825,628 6/21/2000 28,809
Japanese Yen 8,903,800 83,191 6/21/2000 3,086
Japanese Yen 23,951,400 223,785 6/21/2000 7,853
Japanese Yen 111,586,497 1,042,585 6/21/2000 36,588
Japanese Yen 86,693,000 809,998 6/21/2000 9,725
Japanese Yen 83,297,000 778,268 6/21/2000 11,876
Japanese Yen 59,699,000 557,785 6/21/2000 7,589
Japanese Yen 82,835,100 773,952 6/21/2000 25,900
New Zealand Dollar 1,152,800 560,451 6/21/2000 15,949
New Zealand Dollar 138,800 67,478 6/21/2000 2,476
New Zealand Dollar 376,000 182,798 6/21/2000 5,202
New Zealand Dollar 375,600 182,604 6/21/2000 4,070
Swedish Krona 15,021,000 1,683,691 6/21/2000 96,048
Swedish Krona 6,631,000 743,263 6/21/2000 27,945
-----------------------------------------------------------------------------------------------
1,187,148
-----------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 57
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
Putnam Diversified Income Portfolio (continued)
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
============================================================================================
<S> <C> <C> <C> <C>
To Buy:
Australian Dollar 2,877,750 $1,679,964 6/21/2000 $ (204,962)
Australian Dollar 596,000 347,931 6/21/2000 (42,657)
Australian Dollar 596,000 347,931 6/21/2000 (40,992)
Australian Dollar 1,235,500 721,256 6/21/2000 (62,730)
Australian Dollar 4,221,900 2,464,648 6/21/2000 (157,152)
Australian Dollar 1,320,000 770,586 6/21/2000 (44,580)
Australian Dollar 1,688,000 985,416 6/21/2000 (38,306)
British Pound 247,918 387,941 6/21/2000 (4,023)
British Pound 552,000 864,138 6/21/2000 (27,529)
British Pound 338,900 530,537 6/21/2000 (8,355)
British Pound 581,000 909,537 6/21/2000 (11,307)
British Pound 496,000 776,472 6/21/2000 (20,253)
British Pound 496,000 776,472 6/21/2000 (18,775)
Canadian Dollar 1,117,000 754,912 6/21/2000 (17,420)
Danish Krone 626,253 76,778 6/21/2000 (8,582)
Danish Krone 655,300 80,339 6/21/2000 (6,340)
Euro 4,053,850 3,707,933 6/21/2000 (403,766)
Euro 2,352,300 2,151,577 6/21/2000 (233,232)
Euro 764,500 699,265 6/21/2000 (74,600)
Euro 2,305,900 2,109,136 6/21/2000 (220,976)
Euro 781,300 714,631 6/21/2000 (58,426)
Japanese Yen 5,052,565 47,208 6/21/2000 (1,762)
Japanese Yen 381,769,000 3,566,978 6/21/2000 (131,259)
Japanese Yen 86,693,000 809,998 6/21/2000 13,809
Japanese Yen 85,420,000 798,104 6/21/2000 (33,728)
Japanese Yen 80,880,000 755,685 6/21/2000 (17,073)
Japanese Yen 80,880,000 755,685 6/21/2000 (12,844)
Swedish Krona 12,553,600 1,407,122 6/21/2000 (38,645)
Swedish Krona 12,102,800 1,356,593 6/21/2000 (35,494)
Swiss Franc 614,500 358,955 6/21/2000 (28,742)
-------------------------------------------------------------------------------------------
(1,990,701)
-------------------------------------------------------------------------------------------
Net Unrealized Loss on Forward
Foreign Currency Contracts $ (803,553)
===========================================================================================
</TABLE>
6. Repurchase Agreements
The Portfolios purchase (and their custodian takes possession of) U.S.
government securities from banks and securities dealers subject to agreements to
resell the securities to the sellers at a future date (generally, the next
business day) at an agreed-upon higher repurchase price. The Portfolios require
continual maintenance of the market value of the collateral in amounts at least
equal to the repurchase price.
--------------------------------------------------------------------------------
58 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
7. Futures Contracts
Initial margin deposits made upon entering into futures contracts are recognized
as assets. Securities equal to the initial margin amount are segregated by the
custodian in the name of the broker. Additional securities are also segregated
up to the current market value of the futures contracts. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's trading. Variation
margin payments are received or made and recognized as assets due from or
liabilities due to broker, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Portfolios record a realized gain or
loss equal to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolio's basis in the contract. The Portfolios enter
into such contracts to hedge a portion of their portfolios. The Portfolios bear
the market risk that arises from changes in the value of the financial
instruments and securities indices (futures contracts).
At April 30, 2000, the PDIP had the following open futures contracts:
<TABLE>
<CAPTION>
# of Basis Market Unrealized
Contracts Expiration Value Value Gain (Loss)
=====================================================================================================
<S> <C> <C> <C> <C> <C>
Contracts to Sell:
3-Month Euro Bond 51 6/00 $5,048,730 $5,132,024 $(83,294)
3-Month Euro Euribor 6 9/01 1,392,978 1,389,150 3,828
3-Month Gilt Bond 3 6/00 537,199 546,391 (9,192)
U.S. 5-Year Treasury Note 76 6/00 7,504,446 7,415,938 88,508
U.S. Treasury Long Bond 4 6/00 380,106 386,250 (6,144)
-----------------------------------------------------------------------------------------------------
(6,294)
-----------------------------------------------------------------------------------------------------
Contracts to Buy:
3-Month Euro Euribor 6 9/00 1,398,108 1,393,425 (4,683)
U.S. 10-Year Treasury Note 60 6/00 5,730,774 5,817,188 86,414
-----------------------------------------------------------------------------------------------------
81,731
-----------------------------------------------------------------------------------------------------
Net Unrealized Gain $ 75,437
=====================================================================================================
</TABLE>
8. Lending of Portfolio Securities
The Portfolios have an agreement with their custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities or high quality money market instruments that
are
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 59
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
maintained at all times in an amount at least equal to the current market
value of the loaned securities, plus a margin which may vary between 2% and 5%
depending on the type of securities loaned. The custodian establishes and
maintains the collateral in segregated accounts. The Portfolios maintain
exposure for the risk of any losses in the investment of amounts received as
collateral.
At April 30, 2000, the Portfolios did not have any securities on loan.
9. Securities Traded on a When-Issued or To-Be-Announced Basis
PDIP may trade securities on a when-issued basis or on a to-be-announced ("TBA")
basis.
In a when-issued transaction the securities are purchased or sold by the
Portfolio with payment and delivery taking place in the future in order to
secure what is considered to be an advantageous price and yield to the Portfolio
at the time of entering into the transaction. Purchasing such securities
involves the risk of loss if the value of the securities declines prior to
settlement.
In a TBA transaction, the Portfolio commits to purchasing or selling securities
for which specific information is not yet known at the time of the trade,
particularly the face amount and maturity date. Securities purchased on a TBA
basis are not settled until they are delivered to the Portfolio, normally 15 to
45 days later. These transactions are subject to market fluctuations and their
current value is determined in the same manner as for other portfolio
securities.
At April 30, 2000, the Portfolios did not hold any TBA securities.
10. Capital Loss Carryforwards
At October 31, 1999, the Smith Barney High Income Portfolio and the Putnam
Diversified Income Portfolio had, for Federal income tax purposes, approximately
$15,317,000 and $7,407,000, respectively, of capital loss carryforwards
available to offset future realized gains. To the extent that these carryforward
losses are used to offset gains, it is probable that the gains so offset will
not be distributed. Expirations occur on October 31 of the years below:
Total 2006 2007
================================================================================
Smith Barney High Income Portfolio $15,317,000 $3,001,000 $12,316,000
--------------------------------------------------------------------------------
Putnam Diversified Income Portfolio 7,407,000 2,321,000 5,086,000
================================================================================
--------------------------------------------------------------------------------
60 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
11. Capital Shares
At April 30, 2000, the Fund had six billion shares of $0.00001 par value capital
stock authorized. Each share of a Portfolio represents an equal proportionate
interest in that Portfolio with each share of the same Portfolio and has an
equal entitlement to any dividends and distributions made by the Portfolio.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
================================================================================
Smith Barney High Income Portfolio
Shares sold 1,124,791 3,430,771
Shares issued on reinvestment -- 1,159,451
Shares reacquired (1,329,168) (1,009,907)
--------------------------------------------------------------------------------
Net Increase (Decrease) (204,377) 3,580,315
================================================================================
Putnam Diversified Income Portfolio
Shares sold 346,774 1,352,553
Shares issued on reinvestment -- 798,153
Shares reacquired (1,041,203) (1,668,397)
--------------------------------------------------------------------------------
Net Increase (Decrease) (694,429) 482,309
================================================================================
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 61
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney
High Income Portfolio 2000(1) 1999 1998(2) 1997 1996 1995
=============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.72 $11.97 $13.25 $12.09 $11.26 $10.07
---------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.63 0.92 1.21 0.88 1.14 0.93
Net realized and unrealized
gain (loss) (0.50) (0.28) (1.58) 1.00 0.19 0.48
---------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.13 0.64 (0.37) 1.88 1.33 1.41
---------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.89) (0.74) (0.66) (0.50) (0.22)
Net realized gains -- -- (0.17) (0.06) -- --
---------------------------------------------------------------------------------------------
Total Distributions -- (0.89) (0.91) (0.72) (0.50) (0.22)
---------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $11.85 $11.72 $11.97 $13.25 $12.09 $11.26
---------------------------------------------------------------------------------------------
Total Return 1.11%++ 5.28% (3.38)% 16.24% 12.17% 14.30%
Net Assets,
End of Period (millions) $ 199 $ 199 $ 160 $ 124 $ 66 $ 20
---------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 0.66% 0.66% 0.67% 0.70% 0.84% 0.70%
Net investment income 10.33 9.44 9.12 9.36 9.79 9.54
---------------------------------------------------------------------------------------------
Portfolio Turnover Rate 33% 73% 82% 89% 104% 57%
=============================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager waived all or part of its fees for the year ended October 31,
1995. If such fees were not waived, the per share decrease on net
investment income and the actual expense ratio would have been $0.04 and
1.07%, respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
62 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Putnam Diversified
Income Portfolio 2000(1) 1999 1998 1997 1996(2) 1995
=============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.24 $11.70 $12.31 $11.99 $11.46 $10.18
---------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income(3) 0.54 0.91 0.57 0.67 0.78 0.79
Net realized and unrealized
gain (loss) (0.39) (0.70) (0.62) 0.30 0.27 0.58
---------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.15 0.21 (0.05) 0.97 1.05 1.37
---------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.67) (0.42) (0.56) (0.39) (0.09)
Net realized gains -- -- (0.14) (0.09) (0.13) --
---------------------------------------------------------------------------------------------
Total Distributions -- (0.67) (0.56) (0.65) (0.52) (0.09)
---------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $11.39 $11.24 $11.70 $12.31 $11.99 $11.46
---------------------------------------------------------------------------------------------
Total Return 1.33%++ 1.80% (0.65)% 8.44% 9.43% 13.55%
Net Assets,
---------------------------------------------------------------------------------------------
End of Period (millions) $ 150 $ 156 $ 157 $ 122 $ 81 $ 32
---------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3) 0.85%+ 0.83% 0.87% 0.88% 0.96% 0.97%
Net investment income 8.39+ 7.85 7.48 6.99 7.57 7.53
---------------------------------------------------------------------------------------------
Portfolio Turnover Rate 44% 118% 191% 253% 255% 276%
=============================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager waived all or part of its fees for the year ended October 31,
1995. If such fees were not waived, the per share decrease on net
investment income and the actual expense ratio would have been $0.04 and
1.31%, respectively.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 63
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors
Victor K. Atkins
A.E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
John C. Bianchi
Vice President
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Managers
SSB Citi Fund Management LLC
Travelers Investment Adviser, Inc.
Custodian
PFPC Trust Company
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, Connecticut 06183
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- Smith Barney High Income and Putnam Diversified
Income Portfolios. It is not authorized for distribution to prospective
investors unless accompanied or preceded by a current Prospectus for the
Portfolios, which contains information concerning the Portfolios' investment
policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York 10013
IN0805 6/00
<PAGE>
Travelers Series Fund Inc.
Smith Barney International
Equity Portfolio
Smith Barney Pacific
Basin Portfolio
INVESCO Global Strategic
Income Portfolio
------------------------
SEMI - ANNUAL REPORT
------------------------
April 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Travelers Series Fund Inc.
[PHOTO]
HEATH B. MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the semi-annual report for the Travelers Series Fund
Inc. -- Smith Barney International Equity Portfolio, Smith Barney Pacific Basin
Portfolio, and INVESCO Global Strategic Income Portfolio ("Portfolio(s)") for
the six months ended April 30,2000. For your convenience,we have summarized the
period's prevailing economic and market conditions and outlined each Portfolio's
investment strategy.1 A detailed summary of performance and current holdings can
be found in the appropriate sections that follow. We hope you find this report
useful and informative.
Portfolio Highlights
Smith Barney International Equity Portfolio
For the six months ended April 30, 2000, the Smith Barney International Equity
Portfolio returned 24.76%. In comparison, the Lipper, Inc. peer group of
international funds returned 16.74% for the same period. (Lipper, Inc. is an
independent fund-tracking organization.)
Investment Strategy and Market Update
The International Equity Portfolio seeks total return on its assets through
growth of capital and income. The Portfolio seeks to achieve its objective by
investing at least 65% of its assets in a diversified portfolio of equity
securities of established non-U.S. issuers.
The six months ended April 2000 featured volatile global stock markets. The
period began with a sharp rise in the stock markets at the end of 1999, as
investors correctly anticipated a smooth "Y2K" transition. That euphoria gave
way to a sharp decline in the last two months of the period, especially in
technology-oriented growth stocks, as inflation and interest rate worries have
predominated. (Growth investing consists of investing in companies with
historically strong and relatively predictable earnings growth rates.)
---------
1 The information provided represents the opinion of the manager and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the Portfolios.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 1
<PAGE>
As the reporting period progressed, the prognosis for global economic growth
improved. From many perspectives, the outlook for the global economy is the
strongest witnessed in more than a decade. However,despite the ongoing growth of
the U.S. economy,we believe the recovery of several Asian economies and the
European resurgence has set the stage for robust corporate earnings.
The new European currency,the euro,continued to fall sharply during the period
versus the U.S. dollar and Japanese yen despite efforts to stabilize the
currency. (The euro is the single currency of the European Monetary Union that
was adopted by Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the
Netherlands, Austria, Portugal and Finland on January 1, 2000.) The currency
decline reduced Portfolio return for the period. Major capital flows out of
Europe most likely accounted for the majority of the weakness.
Meanwhile, mergers and acquisitions continued to color the European investment
scene. During November, German telecommunications operator Mannesmann became the
subject of a hostile takeover battle after resisting the friendly overtures of
U.K.-based Vodafone. Several of the telecommunications issues in the Portfolio
(including some Asian securities) benefited from these developments as the clear
value of broadband capacity,value-added services and enabling technologies
appear to have crystallized.
European companies across a wide range of industries have embarked on major
merger and acquisition initiatives. Given the favorable cost of capital and
deregulation of many industries, progressive managements have launched strategic
alliances to build geographic breadth as well as achieve economies of scale.
European banking, telecommunications, insurance, automotive, pharmaceutical and
defense industries among others have been affected by the consolidation trend.
The managers believe these mergers and acquisitions should help European
managements dramatically improve the return on investment of their basic
businesses.
The Asian markets have shown a range of performances during the period, with the
traditionally U.S. interest-rate sensitive markets such as Hong Kong suffering
sharp declines recently. The Japanese stock market went down in sympathy with
the U.S. in recent months after a strong close in the later part of 1999. Yet
evidence is growing of a modest Japanese economic rebound following the
contractions of the fourth quarter of 1999.
Since mid-March, investor choice has shifted from the trio of emerging
technology, media and telecommunications ("TMT") stocks to large-capitalization
companies with earnings, dividends and relatively stable businesses. A decided
preference for "defensive" stocks -- such as health care and financial services
-- and value shares occurred during the period. (Value investing consists of
identifying securities of companies that are believed to be undervalued but have
good longer-term business prospects.)
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
Investors took profits from aggressively positioned and aggressively financed
emerging growth stocks. Whether this rotation is sustainable is anyone's guess.
The rise of more speculative securities prior to the recent sharp correction is,
in the managers' opinion, the greater surprise rather than the speed and
magnitude of recent declines.
Portfolio Update2
The commercial applications of the Internet and associated technologies continue
to challenge many traditional businesses and sectors. The managers' investment
strategy continues to emphasize high-quality, well-financed growth stocks across
the entire capitalization spectrum. In their view, strong earnings growth and
the creation of substantial great new business franchises continue to be
centered in the broadly defined technology sector, given the challenges facing
many more traditional industries. Notably, those technology stocks with
substantial earnings growth have demonstrated the best support during the recent
market rotation. At period-end, the managers' stock-driven asset allocation in
the Portfolio was 56% in Europe, 32% in Asia and 12% in the Americas and
emerging markets.
During the period, the managers purchased a position in Canada's BCE Emergis,
65% owned by BCE and a leader in Canadian B2B commerce. The managers also
purchased a position in Australia's ERG Limited, a major factor in smart card
technology that has won several significant public transportation system
projects.
The managers added Amdocs, a telecommunications billing and customer care
software developer with supplier relationships to wireline and wireless
communications entities to the Portfolio during the period. The managers also
added opportunistically to existing positions in Spain's Indra,the leading
Iberian systems integrator,and to Energis,the leading competitive broadband
carrier in the U.K.
In Asia, the managers added to the Portfolio's long-standing major position in
Hong Kong's Hutchison Whampoa. The managers also established positions in
Japan's Sharp, based on its strengths in flat-panel display technologies.
The managers took partial profits in several profitable investments (such as the
U.K.'s COLT Telecom and Finland's Nokia) that had reached the Portfolio's 5% of
assets risk control limit in order to finance other Portfolio purchases. The
managers also trimmed positions in Japan's Softbank as they felt valuations had
become excessive. The managers reduced the Portfolio's position in Telecom
Italia Mobile. The managers also sold the Portfolio's positions in Italy's
Alleanza and Hong Kong & China Gas due to sluggish earnings.
---------
2 The following securities reflect the holdings of the Smith Barney
International Equity Portfolio as of April 30, 2000. After such date this
information may not reflect the current Portfolio holdings. Stock
information is for information purposes. It should not be relied upon for
current prices of shares or for trading securities. Further,there is no
assurance that securities will remain in or out of the Portfolio. Please
refer to pages 13 through 15 for the percentage breakdown of the
Portfolio's holdings.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 3
<PAGE>
Smith Barney Pacific Basin Portfolio
For the six months ended April 30, 2000,the Smith Barney Pacific Basin Portfolio
returned a negative 0.08%. In comparison, the Lipper, Inc. peer group of Pacific
Region funds returned 6.57% and the Morgan Stanley Capital International All
Country Asia Pacific Index ("MSCI Asia Pacific")3 returned 4.73% for the same
period. (Lipper, Inc. is an independent fund-tracking organization.)
For the period covered by the report, the Portfolio was overweighted in
technology relative to the MSCI Asia Pacific Index. Technology performed well
during the first half of the reporting period, but has come under considerable
pressure of late. The manager believes the Portfolio's overweighted position in
technology has caused the Portfolio to underperform versus the MSCI Asia Pacific
Index for the period. Yet, despite the recent volatility in the technology
sector, the manager has held on to his technology positions because he believes
the long-term growth potential in technology stocks remains intact. Also, the
continued volatility in the U.S. markets negatively influenced the international
markets which may be reflected in the MSCI Asia Pacific Index but not the
Portfolio.
Market Review
In the manager's view, Asia has been adversely affected by higher volatility in
global stock markets and renewed concerns about rising U.S. interest rates. The
manager believes weaker U.S. stock prices may negatively impact Asia's economy,
but will not derail Asia's recovery. In the manager's opinion, the close of 1999
going into 2000 represented a period of strong relative performance for the
Pacific region,which the manager believes is a result of the restructuring,low
inflation and deregulation -- all factors fostering its economic recovery.
However, the past few months were marked by a severe fallout from the surge in
technology stocks.
Overall, sentiment is improving in the Pacific Rim, particularly in Japan. The
recovery in the Japanese corporate sector is gradually spreading to worker
income. If these income gains can effectively translate into an increase in
consumer spending, the manager thinks the ensuing rising consumer sentiment
would reinforce the case for above average Gross Domestic Product ("GDP")
growth. However, longer-term issues, such as a flawed pension system and the
lack of meaningful fiscal reform,continue to weigh on consumer spending.
Also,stubborn expectations of falling prices have left the Pacific region
vulnerable to setbacks. Therefore, the manager thinks a supportive monetary
policy is still necessary to sustain the improvements in consumer sentiment and
secure growth prospects.
---------
3 The MSCI Asia Pacific Index, comprising equities in Australia, New Zealand,
Japan and the Far East, is a common benchmark against which the performance
of Asian funds is measured. An investor can not invest directly in an
index.
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
The Economic Planning Agency's consumer sentiment index (CSI)4 has gradually
risen to its long-term averages. On this basis, Japanese consumers are about as
optimistic about the near-term future as they have been in the past two decades.
In addition, many Tokyo Stock Exchange listed companies continue to trade at low
price-to-book multiples5, and there are 434 stocks now that carry dividend
yields greater than the 10-year Japanese government bond.
Investment Strategy and Portfolio Update
The Portfolio's manager employs a "bottom-up" investment strategy, emphasizing
individual security selection,while optimally allocating the Pacific Basin
Portfolio's assets among companies in the Asia Pacific region. The manager's
stock selection process involves exhaustive analysis of
companies' fundamentals,in which he looks for certain criteria such as above
average earnings growth, high relative return on invested capital,experienced
and effective management and competitive advantages (i.e., high market share or
special licenses and patents). The manager also actively monitors and evaluates
economic and political conditions in the region that may affect the companies in
which the Portfolio invests.
As always,the manager's philosophy is based on the premise that earnings growth
and earnings momentum will drive stock performance. The manager is finding what
he deems to be viable investment opportunities in growth stocks, selling at
reasonable valuations and with a focus on recovering companies. He believes
opportunities can be identified among those companies whose core businesses are
in basic industry as these companies are most likely to exhibit positive
earnings growth due to the Pacific region's massive restructuring and
deregulation.
Since the recent pullback in select technology issues that began to accelerate
toward the end of the reporting period,the manager has been altering the
Portfolio to reflect the recovery that the manager sees occurring in the basic
industry sector and earnings-oriented companies. While the manager has also
increased the Portfolio's exposure to technology during the period, his focus
has not been on high-flying Internet and telecommunications stocks, but rather,
on `pure' technology investments such as semiconductors, digital equipment and
electronic components.
Moreover, the manager has overweighted the Portfolio's positions in Taiwan and
North and South Korea,as warranted by the greater growth prospects that he
thinks have become more apparent in these countries. By the end of the
period,the Portfolio was currently underweight versus the MSCI Asia Pacific in
Japan and Hong Kong.
---------
4 The CSI assembles consumer expectations of jobs, income, durable goods
purchasing plans and prices over the next six months.
5 A price-to-book multiple refers to the price paid for a stock in relation
to its book value. Book value is the difference between a company's assets
and liabilities.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 5
<PAGE>
The manager's strategy going forward will be to invest in growth-oriented
companies that can capitalize on Asia's recovering economy. He will continue to
focus on those companies that do business, trade, network or outsource within
the Pacific region, as opposed to those who are more dependent on exporting to
the U.S. and Europe, where excessive market volatility persists.
Market Outlook
The manager is optimistic that the Pacific region will continue its recovery
from the 1997 Asian currency crisis. While no guarantees can be given, based on
the region's restructuring efforts, the manager sees ample evidence that the
underpinnings of economic growth can be maintained over the long term.
Looking forward, financial market deregulation and the information technology
revolution in Japan are creating a small class of entrepreneurs with high
incomes and high net worths. In addition, China's entry into the World Trade
Organization ("WTO") should create opportunities for positive economic change by
way of tariff reduction, market widening and trade expansion.
INVESCO Global Strategic Income Portfolio
For the six months ended April 30, 2000, the INVESCO Global Strategic Income
Portfolio returned 1.76%. In comparison, the J.P. Morgan Global Bond
Index-Unhedged6 returned a negative 4.11% for the same period.
The primary investment objective of the Portfolio is to seek high current income
and secondarily, capital appreciation. The Portfolio invests primarily in debt
securities of U.S. and foreign companies, banks and governments, including those
in emerging markets.
During the reporting period, bond markets worldwide have been characterized by
increased volatility, largely due to the actions of the U.S. Federal Reserve
Board ("Fed"). During the period covered by the report, the Fed raised interest
rates three times for a total of 75 basis points7. At their last meeting on May
16, 2000, the Federal Open Market Committee decided to raise interest rates an
additional 50 basis points to 6.50%, indicating that further rate increases are
still to come.
The bond market was also impacted by the U.S. Treasury's announcement that it
intends to buy back approximately $1 billion of its long-term debt obligations
that led to an inverted yield curve. An inverted yield curve depicts the
relationship whereby the highest yields were for shorter-term bonds. The yield
curve is a graphical depiction of the relationship between the yield on bonds of
---------
6 The J.P. Morgan Global Bond Index is a broad-based unmanaged index of
domestic and foreign bonds. An investor can not invest directly in the
index.
7 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
the same credit quality but different maturities. The yield curve measures the
difference between short-term and long-term rates. The yield on 30-year U.S.
Treasuries fell more than 100 basis points from its January high.
Further comments from the U.S. Treasury also impacted the U.S. bond market. The
testimony of Gary Gensler, Treasury - Under Secretary called into question the
government backing and creditworthiness of Government Sponsored Entities (GSEs),
such as Freddie Mac. As a result, bond markets faced significant pressure,
particularly agencies, swaps spreads and corporate issues.
Economic growth in Europe continued during the period. Prompted by strength in
industrial production, improving business and consumer confidence, the European
Central Bank ("ECB") raised interest rates 75 basis points during the period as
an inflationary precaution.
The Portfolio's managers use fundamental views in tandem with technical and
quantitative analysis to allocate assets and they tend to favor stronger
credits. Current asset allocations remain unchanged from the previous reporting
period. High yield bonds continue to have the largest allocation in the
Portfolio, while international and emerging markets remain minimal.
The managers expect that U.S. economic growth may grow between 4% to 5% as
represented by Gross Domestic Product over the near term. The investment team
believes that inflation should remain low. Yet, the managers maintain their
cautious stance. Despite high levels of market volatility, they think the recent
turbulence may subside and good investment opportunities will emerge.
In closing, thank you for investing in the Travelers Series Fund Inc. We look
forward to continuing to help you achieve your financial goals in the new
century.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
May 22, 2000
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 7
<PAGE>
--------------------------------------------------------------------------------
Smith Barney International Equity Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $ 16.92 $ 21.11 $ 0.00 $ 0.00 24.76%++
--------------------------------------------------------------------------------
10/31/99 12.60 16.92 0.05 0.00 34.73
--------------------------------------------------------------------------------
10/31/98 13.23 12.60 0.00 0.00 (4.76)
--------------------------------------------------------------------------------
10/31/97 12.18 13.23 0.01 0.00 8.73
--------------------------------------------------------------------------------
10/31/96 10.48 12.18 0.01 0.00 16.36
--------------------------------------------------------------------------------
10/31/95 10.55 10.48 0.00 0.00 (0.66)
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.55 0.00 0.00 5.50++
================================================================================
Total $ 0.07 $ 0.00
================================================================================
--------------------------------------------------------------------------------
Smith Barney Pacific Basin Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $ 11.77 $ 11.76 $ 0.00 $ 0.00 (0.08)%++
--------------------------------------------------------------------------------
10/31/99 6.81 11.77 0.00 0.00 72.83
--------------------------------------------------------------------------------
10/31/98 8.04 6.81 0.09 0.00 (14.09)
--------------------------------------------------------------------------------
10/31/97 9.75 8.04 0.06 0.00 (17.02)
--------------------------------------------------------------------------------
10/31/96 8.95 9.75 0.03 0.00 9.26
--------------------------------------------------------------------------------
10/31/95 10.10 8.95 0.00 0.00 (11.39)
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 10.10 0.00 0.00 1.00++
================================================================================
Total $ 0.18 $ 0.00
================================================================================
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
INVESCO Global Strategic Income Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
----------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns+
================================================================================
4/30/00 $ 10.22 $ 10.40 $ 0.00 $ 0.00 1.76%++
--------------------------------------------------------------------------------
10/31/99 10.97 10.22 0.65 0.00 (0.96)
--------------------------------------------------------------------------------
10/31/98 12.52 10.97 0.66 0.64 (2.50)
--------------------------------------------------------------------------------
10/31/97 12.45 12.52 0.46 0.58 9.32
--------------------------------------------------------------------------------
10/31/96 10.77 12.45 0.42 0.00 20.07
--------------------------------------------------------------------------------
10/31/95 9.95 10.77 0.10 0.00 9.37
--------------------------------------------------------------------------------
6/16/94*-10/31/94 10.00 9.95 0.00 0.00 (0.50)++
================================================================================
Total $ 2.29 $ 1.22
================================================================================
It is the Funds policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
Average Annual Total Returns+
--------------------------------------------------------------------------------
Smith Barney Smith Barney INVESCO Global
International Pacific Strategic
Equity Basin Income
Portfolio Portfolio Portfolio
================================================================================
Six Months Ended 4/30/00++ 24.76% (0.08)% 1.76%
--------------------------------------------------------------------------------
Year Ended 4/30/00 43.40 33.03 (1.46)
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 17.17 6.56 6.86
--------------------------------------------------------------------------------
6/16/94* through 4/30/00 13.66 3.21 5.94
================================================================================
--------------------------------------------------------------------------------
Cumulative Total Returns+
--------------------------------------------------------------------------------
Smith Barney Smith Barney INVESCO Global
International Pacific Strategic
Equity Basin Income
Portfolio Portfolio Portfolio
================================================================================
6/16/94* through 4/30/00 112.26% 20.38% 40.36%
================================================================================
+ Assumes the reinvestment of all dividends and capital gains distributions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Smith Barney International Equity Portfolio vs.
MSCI EAFE Index+
--------------------------------------------------------------------------------
June 1994 April 2000
[GRAPH]
International Equity MSCI EASFE Index
------------------------------------------------------------------
6/16/94 10,000 10,000
Oct-94 10,550 10,443
Oct-95 10,480 10,436
Oct-96 12,194 11,563
Oct-97 13,259 12,133
Oct-98 12,628 13,340
Oct-99 17,013 16,413
4/30/00 21,226 17,536
+ Hypothetical illustration of $10,000 invested in shares of the Smith Barney
International Equity Portfolio on June 16, 1994 (commencement of
operations), assuming reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 2000. The Morgan Stanley Capital
International (MSCI) EAFE Index is a composite portfolio consisting of
equity total returns for the countries of Europe, Australia, New Zealand
and the Far East. The MSCI EAFE Index is weighted based on each companys
market capitalization. The index is unmanaged and is not subject to the
same management and trading expenses of a mutual fund. An investor cannot
invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Smith Barney Pacific Basin Portfolio vs.
MSCI Pacific Index+
--------------------------------------------------------------------------------
June 1994 April 2000
[GRAPH]
Pacific Basin MSCI Pacific Index
--------------------------------------------------------------------------------
6/16/94 10,000 10,000
Oct-94 10,100 9,952
Oct-95 8,950 8,836
Oct-96 9,779 9,136
Oct-97 8,114 7,353
Oct-98 6,971 6,346
Oct-99 12,048 9,617
4/30/00 12,038 9,959
+ Hypothetical illustration of $10,000 invested in shares of the Smith Barney
Pacific Basin Portfolio on June 16, 1994 (commencement of operations),
assuming reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Morgan Stanley Capital International
(MSCI) Pacific Index is comprised of a sampling of large, medium and small
capitalization companies who are listed on the various Pacific exchanges,
such as Australia, Hong Kong, Japan, Malaysia, New Zealand and the
Singapore stock exchange. The index is unmanaged and is not subject to the
same management and trading expenses of a mutual fund. An investor cannot
invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
INVESCO Global Strategic Income Portfolio vs.
J.P. Morgan Global Bond Index+
--------------------------------------------------------------------------------
June 1994 April 2000
[GRAPH]
G.T. Global Strategic Income JP Morgan Global Bond\rIndex - Unhedged
--------------------------------------------------------------------------------
6/16/94 10,000 10,000
Oct-94 9,950 10,391
Oct-95 10,882 11,985
Oct-96 13,066 12,716
Oct-97 14,284 13,161
Oct-98 13,927 14,869
Oct-99 13,793 14,429
4/30/00 14,036 13,836
+ Hypothetical illustration of $10,000 invested in shares of the INVESCO
Global Strategic Income Portfolio on June 16, 1994 (commencement of
operations), assuming reinvestment of dividends and capital gains, if any,
at net asset value through April 30, 2000. The J.P. Morgan Global Bond
Index - Unhedged is a daily, market capitalization weighted international
fixed income index consisting of 13 countries. The index is unmanaged and
is not subject to the same management and trading expenses of a mutual
fund. An investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO
SHARES SECURITY VALUE
================================================================================
STOCK -- 82.6%
Australia -- 0.7%
760,000 ERG Ltd. $ 3,614,191
--------------------------------------------------------------------------------
Canada -- 5.8%
51,300 BCE Emergis Inc. 2,482,426
75,000 C-MAC Industries Inc. 3,796,315
350,000 Celestica Inc.+ 18,873,591
161,000 The Toronto-Dominion Bank 3,721,570
--------------------------------------------------------------------------------
28,873,902
--------------------------------------------------------------------------------
Finland -- 4.7%
50,000 F-Secure Oyj 637,912
400,000 Nokia Oyj 22,650,072
--------------------------------------------------------------------------------
23,287,984
--------------------------------------------------------------------------------
France -- 5.1%
46,000 Axa 6,837,141
110,000 Credit Lyonnais S.A. 4,295,426
50,000 Equant N.V.+ 3,879,872
30,000 FI System 1,670,418
25,000 Group Danone 5,479,209
50,000 Sidel S.A. 3,134,882
--------------------------------------------------------------------------------
25,296,948
--------------------------------------------------------------------------------
Germany -- 2.4%
8,000 Aixtron AG 2,085,061
11,500 Allianz AG 4,328,233
7,200 SAP AG Preferred++ 4,176,319
67,300 Stinnes AG 1,432,072
--------------------------------------------------------------------------------
12,021,685
--------------------------------------------------------------------------------
Hong Kong -- 5.4%
504,182 HSBC Holdings PLC++ 5,631,362
915,000 Hutchison Whampoa Ltd. 13,332,884
1,004,000 Li and Fung Ltd. 3,879,782
483,557 Sun Hung Kai Properties Ltd. 3,833,467
8,047 Sunevision Holdings Ltd. 10,486
--------------------------------------------------------------------------------
26,687,981
--------------------------------------------------------------------------------
Ireland -- 1.7%
465,627 Bank of Ireland 3,148,509
387,814 Independent Newspapers PLC 3,102,993
253,755 Irish Continental Group PLC 2,404,976
--------------------------------------------------------------------------------
8,656,478
--------------------------------------------------------------------------------
Israel -- 0.7%
40,000 Amdocs Ltd. 2,707,500
12,000 BATM Advanced Communications Ltd. 854,380
--------------------------------------------------------------------------------
3,561,880
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Italy -- 1.4%
740,000 Telecom Italia Mobile S.p.A. $ 7,084,195
--------------------------------------------------------------------------------
Japan -- 17.7%
134,000 Canon, Inc. 6,125,006
203,000 Hosiden Corp. 9,466,759
7,000 JAFCO Co., Ltd. 1,230,627
70 Japan Telecom Co., Ltd. 3,562,341
50,000 Matsushita Communication Industrial Co., Ltd. 7,837,150
65,000 Murata Manufacturing Co., Ltd. 12,630,118
680 NTT Data Corp.++ 9,060,375
12,000 Seven-Eleven Japan Co., Ltd. 1,476,752
265,000 Sharp Corp. 5,112,422
34,500 SOFTBANK CORP. 8,491,325
44,000 SONY CORP. 5,052,417
44,000 SONY CORP. - NEW 5,089,059
191,000 Terumo Corp.++ 5,779,042
240,000 Tostem Corp. 3,533,102
27,000 Trend Micro Inc. 4,047,189
--------------------------------------------------------------------------------
88,493,684
--------------------------------------------------------------------------------
Mexico -- 1.4%
3,306,000 Wal-Mart de Mexico S.A. de C.V. 7,041,515
--------------------------------------------------------------------------------
Netherlands -- 0.0%
12,500 VIA NET.WORKS, Inc. 225,547
--------------------------------------------------------------------------------
Norway -- 2.1%
135,000 Petroleum Geo Services ASA ADR 2,193,750
106,000 Tandberg Television ASA 959,651
360,000 Tomra Systems ASA++ 7,443,836
--------------------------------------------------------------------------------
10,597,237
--------------------------------------------------------------------------------
Singapore -- 3.6%
262,000 DelGro Corp. Ltd. 644,451
290,000 Singapore Press Holdings, Ltd. 5,672,621
1,750,000 Singapore Technologies Engineering, Ltd. 2,459,736
531,432 United Overseas Bank Ltd. 3,703,684
450,000 Venture Manufacturing (Singapore) Ltd. 5,270,864
--------------------------------------------------------------------------------
17,751,356
--------------------------------------------------------------------------------
South Africa -- 1.1%
100,000 Anglo American Platinum Corp., Ltd. 2,419,057
437,282 Dimension Data Holdings Ltd. 2,870,278
--------------------------------------------------------------------------------
5,289,335
--------------------------------------------------------------------------------
Spain -- 3.5%
325,000 Amadeus Global Travel Distribution S.A. 4,027,959
200,000 Indra Sistemas S.A. 4,707,791
100,000 Superdiplo S.A. 1,430,746
324,005 Telefonica S.A. 7,228,129
--------------------------------------------------------------------------------
17,394,625
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Sweden -- 2.5%
4,800 Enea Data AB $ 846,554
115,800 Framtidsfabriken AB 1,901,329
200,000 Securitas AB 5,182,620
90,000 Skandia Forsakrings AB 4,312,521
--------------------------------------------------------------------------------
12,243,024
--------------------------------------------------------------------------------
Switzerland -- 1.9%
150,000 Mettler-Toledo International Inc. 5,175,000
400 Roche Holding AG 4,187,155
--------------------------------------------------------------------------------
9,362,155
--------------------------------------------------------------------------------
United Kingdom -- 20.9%
150,000 365 Corp. PLC 326,260
500,000 Capita Group PLC 12,886,114
345,000 COLT Telecom Group PLC 15,110,553
800,000 Compass Group PLC 11,504,397
58,000 Energis PLC 2,877,038
78,000 Filtronic PLC 2,129,847
200,000 Guardian IT PLC 4,029,356
1,500,000 Hays PLC 10,421,557
510,000 Invensys PLC 2,467,961
786,990 Misys PLC 9,076,012
2,154,000 Serco Group PLC 15,673,176
1,309,090 Telewest Communications PLC 8,060,697
2,181,690 Vodafone AirTouch PLC 10,019,811
--------------------------------------------------------------------------------
104,582,779
--------------------------------------------------------------------------------
TOTAL STOCK
(Cost -- $228,344,829) 412,066,501
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 17.4%
$86,924,000 CIBC Wood Gundy Securities Inc., 5.600% due
5/1/00; Proceeds at maturity -- $86,964,565;
(Fully collateralized by U.S. Treasury Notes,
5.500% to 8.500% due 11/15/00 to 8/31/01; Market
value -- $88,666,245) (Cost -- $86,924,000) 86,924,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $315,268,829*) $498,990,501
================================================================================
+ Non-income producing security.
++ All or a portion of this security is on loan (See Note 9).
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY PACIFIC BASIN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
STOCK -- 100.0%
Australia -- 1.3%
60,200 Computershare Ltd. $ 245,430
26,815 Telstra Corp. Ltd. 114,846
--------------------------------------------------------------------------------
360,276
--------------------------------------------------------------------------------
Hong Kong -- 6.8%
50,000 China Telecom Ltd.+ 361,077
120,000 Computer & Technologies Holdings Ltd.+ 137,883
37,000 HSBC Holdings PLC 413,270
33,000 Hutchison Whampoa Ltd. 480,858
180,000 i100 Ltd. 42,289
250,000 Softbank Investment International (Strategic) Ltd.+ 104,311
200,000 Sunevision Holdings Ltd.+ 260,617
--------------------------------------------------------------------------------
1,800,305
--------------------------------------------------------------------------------
Japan -- 66.5%
20,000 Canon, Inc. 914,180
3,000 Drake Beam Morin - Japan Inc. 732,825
16,000 Fujitsu Ltd. 453,019
5,000 Hirose Electric Co., Ltd. 604,210
9,000 Hosiden Corp. 419,709
3,500 Internet Initiative Japan Inc.+ 210,000
7,000 Ito-Yokado Co., Ltd. 511,034
1,000 JAFCO Co., Ltd. 175,804
12,000 Matsushita Electric Industrial Co., Ltd. 317,557
12,000 Murata Manufacturing Co., Ltd. 2,331,714
6,000 Nichii Gakkan Co. 549,618
40,000 Nippon Sheet Glass Co., Ltd. 355,309
67 Nippon Telegraph & Telephone Corp. (NTT) 830,719
42,000 Nomura Securities Co., Ltd. 1,057,044
64 NTT Data Corp. 852,741
25 NTT DoCoMo, Inc. 835,068
300 Oracle Corp. Japan 255,378
11,097 Pasona Softbank, Inc. 513,394
30,000 Sailor Pen Co., Ltd. 524,636
10,000 Seven-Eleven Japan Co., Ltd.++ 1,230,627
15,000 Sharp Corp. 289,382
5,800 SONY CORP. 666,000
5,800 SONY CORP. - NEW+ 670,830
10,000 Takeda Chemical Industries, Ltd. 657,876
14,000 Terumo Corp. 423,595
20,000 Tostem Corp. 294,425
7,000 Trend Micro Inc.+ ++ 1,049,271
--------------------------------------------------------------------------------
17,725,965
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY PACIFIC BASIN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Malaysia -- 1.7%
26,000 Telekom Malaysia Berhad $ 90,316
110,000 Tenaga Nasional Berhad 364,737
--------------------------------------------------------------------------------
455,053
--------------------------------------------------------------------------------
Singapore -- 6.1%
115,492 Datacraft Asia Ltd. 866,190
73,900 NatSteel Electronics Ltd.++ 424,141
43,000 Star Cruises PLC 331,100
--------------------------------------------------------------------------------
1,621,431
--------------------------------------------------------------------------------
South Korea -- 5.1%
12,104 Kookmin Bank 130,884
6,000 Korea Electric Power Corp. 175,715
4,200 Korea Telecom Corp. 286,875
8,600 Pohang Iron & Steel Co., Ltd. 180,600
19,000 Samsung Corp. 215,724
1,410 SK Telecom Co., Ltd. 374,814
--------------------------------------------------------------------------------
1,364,612
--------------------------------------------------------------------------------
Taiwan -- 12.2%
75,250 Cathay Life Insurance Co., Ltd. 181,855
83,200 Hon Hai Precision Industry Co., Ltd.+ 801,555
39,900 Ritek Inc. GDR 761,005
24,000 Synnex Technology International Corp. GDR 648,000
65,190 Taiwan Semiconductor Manufacturing Co. 419,406
5,500 Winbond Electronics Corp. 174,075
80,000 Zyxel Communications Corp.+ 269,101
--------------------------------------------------------------------------------
3,254,997
--------------------------------------------------------------------------------
Thailand -- 0.3%
153,000 National Finance Public Co., Ltd. 35,754
147,000 National Finance Public Co., Ltd. (Alien Market) 35,124
--------------------------------------------------------------------------------
70,878
--------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $18,172,136*) $26,653,517
================================================================================
+ Non-income producing security.
++ All or a portion of this security is on loan (See Note 9).
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
INVESCO GLOBAL STRATEGIC INCOME PORTFOLIO
FACE
AMOUNT++ SECURITY VALUE
================================================================================
BONDS -- 96.1%
Argentina -- 2.0%
Republic of Argentina:
365,000 11.786% due 4/10/05 $ 343,100
95,000 9.750% due 9/19/27 79,610
--------------------------------------------------------------------------------
422,710
--------------------------------------------------------------------------------
Aruba -- 1.2%
250,000 Sanwa Finance of Aruba AEC, 8.350% due 7/15/09* 247,430
--------------------------------------------------------------------------------
Brazil -- 5.0%
Republic of Brazil:
250,000 11.625% due 4/15/04 248,125
650,000 9.375% due 4/7/08 541,125
320,000 10.125% due 5/15/27 250,400
--------------------------------------------------------------------------------
1,039,650
--------------------------------------------------------------------------------
Bulgaria -- 1.0%
258,000 Bulgaria Discount Note, 6.500% due 7/28/24 197,853
--------------------------------------------------------------------------------
Canada -- 1.3%
295,000(CAD) Government of Canada, 10.750% due 10/1/09 262,316
--------------------------------------------------------------------------------
Colombia -- 0.3%
75,000 Republic of Colombia, 9.750% due 4/23/09 59,250
--------------------------------------------------------------------------------
Croatia -- 0.5%
116,454 Republic of Croatia, Series A, 7.062% due 7/31/10 103,936
--------------------------------------------------------------------------------
Germany -- 4.8%
Bundesrepublik Deutscheland:
623,776(EUR) 6.500% due 10/14/05 603,523
100(EUR) 6.000% due 1/5/06 95
376,323(EUR) 6.500% due 7/4/27 379,125
--------------------------------------------------------------------------------
982,743
--------------------------------------------------------------------------------
Greece -- 3.5%
Hellenic Republic:
50,000,000(GRD) 9.200% due 3/21/03 572,686
190,000,000(GRD) 8.700% due 4/8/05 142,778
--------------------------------------------------------------------------------
715,464
--------------------------------------------------------------------------------
Korea -- 0.7%
145,000 Republic of Korea, 8.875% due 4/15/08 149,894
--------------------------------------------------------------------------------
Malaysia -- 0.3%
65,000 Malaysia, 8.750% due 6/1/09 66,382
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
INVESCO GLOBAL STRATEGIC INCOME PORTFOLIO
FACE
AMOUNT++ SECURITY VALUE
================================================================================
Mexico -- 3.3%
United Mexican States:
384,000 10.375% due 2/17/09 $ 404,352
244,000 11.375% due 9/15/16 276,560
--------------------------------------------------------------------------------
680,912
--------------------------------------------------------------------------------
New Zealand -- 1.2%
500,000(NZD) Federal National Mortgage Association,
7.250% due 6/20/02 241,957
--------------------------------------------------------------------------------
Panama -- 0.4%
85,000 Republic of Panama, 9.375% due 4/1/29 80,325
--------------------------------------------------------------------------------
Philippines -- 0.4%
105,000 Republic of Philippines, 9.875% due 1/15/19 93,188
--------------------------------------------------------------------------------
Russia -- 2.0%
5,000 Ministry Finance Russia, 3.000% due 5/14/06# 2,396
25,019 Russian Ian, 5.969% due 12/15/15 6,911
1,485,821 Russian Principal Loan, 6.625% due 12/15/20 410,458
--------------------------------------------------------------------------------
419,765
--------------------------------------------------------------------------------
Turkey -- 0.6%
119,000 Republic of Turkey, 12.000% due 12/15/08 127,627
--------------------------------------------------------------------------------
United Kingdom -- 1.5%
150,000(DEM) COLT Telecom Group PLC, 7.625% due 7/31/08 66,390
190,000(GBP) London International Exhibition Centre,
7.710% due 11/25/16 243,795
--------------------------------------------------------------------------------
310,185
--------------------------------------------------------------------------------
United States -- 64.6%
U.S. Treasury Notes:
3,780,000 5.625% due 5/15/08* 3,595,725
660,000 4.750% due 11/15/08* 590,390
270,000 6.375% due 8/15/27* 276,148
500,000 Aircraft Finance Trust, 8.000% due 5/15/24 459,063
250,000 Allied Waste North America, Series B,
10.000% due 8/1/09 170,625
125,000 American Axle & Manufacturing Inc.,
9.750% due 3/1/09# 120,000
250,000 American Plumbing & Mechanic, 11.625%
due 10/15/08# 221,875
250,000 Ames Department Stores, 10.000% due 4/15/06 232,500
275,000 Atrium Cos. Inc., Series B, 10.500% due 5/1/09 257,125
100,000 Blount Inc., 13.000% due 8/1/09 98,500
250,000 Charter Communications Holdings, 10.250%
due 1/15/10# 241,875
95,000 Chase Manhattan Corp., 6.250% due 1/15/06 88,113
250,000 Chattem Inc., 8.875% due 4/1/08 216,250
110,000 Circus Circus Enterprise, 9.250% due 12/1/05 106,975
150,000 Columbus McKinnon Corp., 8.500% due 4/1/08 133,500
360,000 Comcast Cable Communications, 6.200% due 11/15/08 315,450
225,000 Continental Mortgage Home Equity Loan Trust,
8.500% due 4/25/29 170,262
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
INVESCO GLOBAL STRATEGIC INCOME PORTFOLIO
FACE
AMOUNT++ SECURITY VALUE
================================================================================
United States -- 64.6% (continued)
90,000 CUC International Inc., 3.000% due 2/15/02 $ 82,800
100,000 Drypers Corp., 10.250% due 6/15/07 70,500
250,000 Fairchild Corp., 10.750% due 4/15/09 138,438
250,000 Florida Panthers Holdings, 9.875% due 4/15/09# 228,750
330,000 General Motors Acceptance Corp., 6.625% due 10/15/05 311,438
100,000 Gentek Inc., 11.000% due 8/1/09 101,750
360,000 Green Tree Home Equity Loan Trust, 7.880% due 9/15/30 358,566
Hollywood Casino Corp.:
250,000 13.000% due 8/1/06# 265,000
250,000 11.250% due 5/1/07 255,000
150,000 Level 3 Communications, 9.125% due 5/1/08 131,250
300,000 Lyondell Chemical Co., 10.875% due 5/1/09 297,750
250,000 MGC Communications Inc., 13.000% due 4/1/10 231,250
250,000 Musicland Group Inc., 9.875% due 3/15/08 206,250
250,000 Nextlink Communications, 10.500% due 12/1/09# 242,500
150,000 North American Van Lines, 13.375% due 12/1/09# 141,750
250,000 Northpoint Communications Group, Inc.,
12.875% due 2/15/10# 223,750
250,000 Pillowtex Corp., 10.000% due 11/15/06 101,250
75,000 Polaroid Corp., 11.500% due 2/15/06 76,125
150,000 Primus Telecomm Group, 11.250% due 1/15/09 136,125
250,000 Prison Realty Trust Inc., 12.000% due 6/1/06 240,938
150,000 R&B Falcon Corp., 12.250% due 3/15/06 162,750
200,000 Republic Technologies International,
13.750% due 7/15/09 51,000
150,000 Riddell Sports Inc., 10.500% due 7/15/07 118,500
400,000 Spectrasite Holdings Inc., step bond to yield
12.838% due 3/15/10# 209,000
200,000 Stater Brothers Holdings, 10.750% due 8/15/06 199,500
250,000 Stericycle Inc., 12.375% due 11/15/09# 250,000
250,000 Triad Hospitals Holdings, 11.000% due 5/15/09 261,250
200,000 Williams Communications Group Inc.,
10.875% due 10/1/09 202,000
100,000 Willis Corroon Corp., 9.000% due 2/1/09 76,000
200,000 Winsloew Furniture Inc., Series B, 12.750% due 8/15/07 185,000
250,000 Winstar Communications, Inc., 12.750% due 4/15/10# 240,000
200,000 Woods Equipment Co., step bond to yield
12.000% due 7/15/11# 176,000
100,000 Worldwide Fiber Inc., 12.000% due 8/1/09# 93,000
--------------------------------------------------------------------------------
13,359,556
--------------------------------------------------------------------------------
Venezuela -- 1.5%
480,000 Republic of Venezuela, 9.250% due 9/15/27 306,960
--------------------------------------------------------------------------------
TOTAL BONDS
(Cost -- $22,096,560) 19,868,103
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
INVESCO GLOBAL STRATEGIC INCOME PORTFOLIO
FACE
AMOUNT SECURITY VALUE
================================================================================
CONVERTIBLE BONDS -- 3.9%
United States -- 3.9%
$ 75,000 ADT Operations, zero coupon due 7/6/10 $ 188,063
115,000 Credit Suisse First Boston NY, 2.000% due 7/24/03 102,638
125,000 Hilton Hotels Corp., 5.000% due 5/15/06 96,875
135,000 Interpublic Group of Cos. Inc., 1.870% due 6/1/06 125,888
40,000 Rite Aid Corp., 5.250% due 9/15/02 15,750
200,000 Roche Holdings, Inc., step bond to yield
2.746% due 1/19/15# 150,500
140,000 WMX Technologies, 2.000% due 1/24/05 118,125
--------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(Cost -- $787,403) 797,839
================================================================================
SHARES SECURITY VALUE
================================================================================
WARRANTS -- 0.0%
200 Republic Technologies International, Expire 7/15/09+ 20
200 Winsloew Furniture Inc., Expire 8/15/07+ 5,000
--------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost -- $1,521) 5,020
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $22,885,484**) $20,670,962
================================================================================
++ Face amount indicated in U.S. dollars unless otherwise indicated.
+ Non-income producing security.
* All or a portion of this security is on loan (See Note 9).
# Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
** Aggregate cost for Federal income tax purposes is substantially the same.
Currency abbreviations used in this schedule:
---------------------------------------------
CAD -- Canadian Dollar
DEM -- German Mark
EUR -- Euro
GBP -- British Pound
GRD -- Greek Drachma
NZD -- New Zealand Dollar
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESCO
Smith Barney Smith Barney Global
International Pacific Strategic
Equity Basin Income
Portfolio Portfolio Portfolio
=============================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at value
(Cost -- $228,344,829, $18,172,136,
and $22,885,484, respectively) $ 412,066,501 $ 26,653,517 $ 20,670,962
Repurchase agreement, at value
(Cost -- $86,924,000) 86,924,000 -- --
Foreign currency, at value
(Cost -- $1,494, $75,142 and
$273,289, respectively) 1,447 70,870 252,935
Cash 891 -- 134,598
Collateral for securities on loan (Note 9) 65,448,086 1,126,985 3,082,040
Receivable for open forward foreign
currency contracts (Note 5) 1,270 -- 76,016
Dividends and interest receivable 474,460 31,087 507,916
--------------------------------------------------------------------------------------------
Total Assets 564,916,655 27,882,459 24,724,467
--------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities on loan (Note 9) 65,448,086 1,126,985 3,082,040
Payable for securities purchased 9,641,618 -- --
Management fees payable 321,731 19,031 16,190
Payable to bank -- 301,822 --
Payable for open forward foreign
currency contracts (Note 5) 64,329 -- --
Accrued expenses 75,918 51,899 54,310
--------------------------------------------------------------------------------------------
Total Liabilities 75,551,682 1,499,737 3,152,540
--------------------------------------------------------------------------------------------
Total Net Assets $ 489,364,973 $ 26,382,722 $ 21,571,927
=============================================================================================
NET ASSETS:
Par value of capital shares $ 232 $ 22 $ 21
Capital paid in excess of par value 312,828,275 22,478,626 23,725,043
Undistributed net investment income 1,933,793 -- 2,431,862
Accumulated net investment loss -- (508,487) --
Accumulated net realized loss from
security transactions and
foreign currencies (9,172,760) (4,064,343) (2,420,955)
Net unrealized appreciation (depreciation)
of investments and foreign currencies 183,775,433 8,476,904 (2,164,044)
--------------------------------------------------------------------------------------------
Total Net Assets $ 489,364,973 $ 26,382,722 $ 21,571,927
=============================================================================================
Shares Outstanding 23,186,670 2,244,361 2,074,213
--------------------------------------------------------------------------------------------
Net Asset Value $ 21.11 $ 11.76 $ 10.40
--------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
INVESCO
Smith Barney Smith Barney Global
International Pacific Strategic
Equity Basin Income
Portfolio Portfolio Portfolio
========================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 1,128,541 $ 23,579 $ 1,021,026
Dividends 1,072,502 54,057 1,570
Less: Foreign withholding tax (124,422) (6,675) (5,033)
----------------------------------------------------------------------------------------
Total Investment Income 2,076,621 70,961 1,017,563
----------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,914,952 131,350 90,004
Custody 67,024 16,202 3,240
Audit and legal 14,900 11,565 10,356
Shareholder communications 12,785 1,135 2,800
Shareholder and system servicing fees 7,570 11,909 9,582
Directors fees 2,727 1,619 2,101
Registration fees 1,011 2,151 --
Pricing service fees -- -- 3,337
Other 4,576 7,693 1,967
----------------------------------------------------------------------------------------
Total Expenses 2,025,545 183,624 123,387
----------------------------------------------------------------------------------------
Net Investment Income (Loss) 51,076 (112,663) 894,176
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES (NOTES 3 AND 5):
Realized Gain (Loss) From:
Security transactions (excluding
short-term securities) 8,711,547 610,318 (319,055)
Foreign currency transactions 19,909 (12,387) (7,710)
----------------------------------------------------------------------------------------
Net Realized Gain (Loss) 8,731,456 597,931 (326,765)
Change in Net Unrealized Appreciation
(Depreciation) of Investments
and Foreign Currencies:
Beginning of period 115,389,356 9,162,242 (2,004,122)
End of period 183,775,433 8,476,904 (2,164,044)
----------------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) 68,386,077 (685,338) (159,922)
----------------------------------------------------------------------------------------
Net Gain (Loss) on Investments
and Foreign Currencies 77,117,533 (87,407) (486,687)
----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Operations $ 77,168,609 $ (200,070) $ 407,489
========================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
<TABLE>
<CAPTION>
Smith Barney International Equity Portfolio 2000 1999
===========================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 51,076 $ 425,796
Net realized gain (loss) 8,731,456 (4,842,818)
Increase in net unrealized appreciation 68,386,077 87,298,498
-------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 77,168,609 82,881,476
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (882,111)
-------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (882,111)
-------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 12):
Net proceeds from sale of shares 450,268,912 535,212,306
Net asset value of shares issued
for reinvestment of dividends -- 882,111
Cost of shares reacquired (346,947,457) (533,425,869)
-------------------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 103,321,455 2,668,548
-------------------------------------------------------------------------------------------
Increase in Net Assets 180,490,064 84,667,913
NET ASSETS:
Beginning of period 308,874,909 224,206,996
-------------------------------------------------------------------------------------------
End of period* $489,364,973 $308,874,909
===========================================================================================
* Includes undistributed net investment income of: $1,933,793 $1,862,808
===========================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
<TABLE>
<CAPTION>
Smith Barney Pacific Basin Portfolio 2000 1999
=================================================================================
<S> <C> <C>
OPERATIONS:
Net investment loss $(112,663) $ (48,140)
Net realized gain 597,931 1,613,727
Increase (decrease) in net unrealized appreciation (685,338) 7,974,805
---------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (200,070) 9,540,392
---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
---------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- --
---------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 12):
Net proceeds from sale of shares 3,107,400 19,098,468
Net asset value of shares issued
for reinvestment of dividends -- --
Cost of shares reacquired (1,953,130) (15,938,642)
---------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 1,154,270 3,159,826
---------------------------------------------------------------------------------
Increase in Net Assets 954,200 12,700,218
NET ASSETS:
Beginning of period 25,428,522 12,728,304
---------------------------------------------------------------------------------
End of period* $26,382,722 $25,428,522
=================================================================================
* Includes accumulated net investment loss of: $(508,487) $(383,437)
=================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
<TABLE>
<CAPTION>
INVESCO Global Strategic Income Portfolio 2000 1999
==================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $894,176 $1,672,918
Net realized loss (326,765) (1,261,434)
Increase in net unrealized depreciation (159,922) (594,822)
----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 407,489 (183,338)
----------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (1,482,668)
Net realized gains -- --
----------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (1,482,668)
----------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 12):
Net proceeds from sale of shares 477,687 1,447,542
Net asset value of shares issued
for reinvestment of dividends -- 1,482,668
Cost of shares reacquired (2,604,002) (6,103,981)
----------------------------------------------------------------------------------
Decrease in Net Assets From
Fund Share Transactions (2,126,315) (3,173,771)
----------------------------------------------------------------------------------
Decrease in Net Assets (1,718,826) (4,839,777)
NET ASSETS:
Beginning of period 23,290,753 28,130,530
----------------------------------------------------------------------------------
End of period* $21,571,927 $23,290,753
==================================================================================
* Includes undistributed net investment income of: $2,431,862 $1,545,396
==================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The Smith Barney International Equity, Smith Barney Pacific Basin and INVESCO
Global Strategic Income Portfolios ("Portfolio(s)") are separate investment
portfolios of the Travelers Series Fund Inc. ("Fund"). The Fund, a Maryland
corporation, is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company and consists of these
Portfolios and twelve other separate investment portfolios: AIM Capital
Appreciation, Alliance Growth, MFS Total Return, Putnam Diversified Income,
Smith Barney High Income, Smith Barney Large Cap Value, Smith Barney Money
Market, Smith Barney Large Capitalization Growth, Travelers Managed Income, Van
Kampen Enterprise, Smith Barney Aggressive Growth and Smith Barney Mid Cap
Portfolios. Shares of the Fund are offered only to insurance company separate
accounts which fund certain variable annuity and variable life insurance
contracts. The financial statements and financial highlights for the other
portfolios are presented in separate shareholder reports.
The significant accounting policies consistently followed by the Portfolios
are: (a) security transactions are accounted for on trade date; (b) securities
traded on national securities markets are valued at the closing prices in the
primary exchange on which they are traded; securities listed or traded on
certain foreign exchanges or other markets whose operations are similar to the
U.S. over-the-counter market (including securities listed on exchanges where the
primary market is believed to be over-the-counter) and listed securities for
which no sales price was reported on that date are valued at the mean between
the bid and asked prices. Securities which are listed or traded on more than one
exchange or market are valued at the quotations on the exchange or market
determined to be the primary market for such securities; (c) securities maturing
within 60 days are valued at cost plus accreted discount or minus amortized
premium, which approximates value; (d) gains or losses on the sale of securities
are calculated by using the specific identification method; (e) interest income,
adjusted for amortization of premium and accretion of discount, is recorded on
an accrual basis; (f) dividend income is recorded on the ex-dividend date;
foreign dividends are recorded on the ex-dividend date or as soon as practical
after the Portfolios determine the existence of a dividend declaration after
exercising reasonable due diligence; (g) dividends and distributions to
shareholders are recorded on the ex-dividend date; (h) the accounting records of
the Portfolios are maintained in U.S. dollars. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollars based on the
rate of exchange of such currencies against U.S. dollars on the date of
valuation. Purchases and sales of securities and income and expenses are
translated at the rate of exchange quoted on the respective date that such
transactions are recorded. Differences between income or expense amounts
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
recorded and collected or paid are adjusted when reported by the custodian; (i)
the character of income and gains to be distributed are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. At October 31, 1999, reclassifications were made to the capital
accounts of the Portfolios to reflect permanent book/tax differences and income
and gains available for distribution under income tax regulations.
Accordingly, for the Smith Barney International Equity Portfolio, a portion of
undistributed net investment income amounting to $413 was reclassified to
paid-in capital. Net investment income, net realized gains and net assets were
not affected by this change; (j) each Portfolio intends to comply with the
requirements of the Internal Revenue Code of 1986, as amended pertaining to
regulated investment companies and make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes;
and (k) estimates and assumptions are required to be made regarding
assets, liabilities and changes in net assets resulting from operations when
financial statements are prepared. Changes in the economic environment,
financial markets and any other parameters used in determining these estimates
could cause actual results to differ.
In addition, the Portfolios may enter into forward exchange contracts in order
to hedge against foreign currency risk. These contracts are marked to market
daily, by recognizing the difference between the contract exchange rate and the
current market rate as an unrealized gain or loss. Realized gains or losses are
recognized when contracts are settled.
2. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH") which, in turn, is a subsidiary of Citigroup Inc.
(Citigroup), acts as investment manager of the Smith Barney International Equity
("SBIE") and the Smith Barney Pacific Basin ("SBPB") Portfolios. SBIE and SBPB
pay SSBC a management fee calculated at the annual rate of 0.90% of the average
daily net assets of each Portfolio. In addition, Travelers Investment Advisors,
Inc., ("TIA"), an affiliate of SSBC, acts as the investment manager of the
INVESCO Global Strategic Income Portfolio ("IGSI"). IGSI pays TIA a management
fee calculated at an annual rate of 0.80% of its average daily net assets. These
fees are calculated daily and paid monthly.
TIA has entered into a subadvisory agreement with INVESCO, Inc. ("INVESCO").
Pursuant to the subadvisory agreement, INVESCO is responsible for the day-to-day
portfolio operations and investment decisions for IGSI and is compensated for
such services. TIA pays INVESCO a monthly fee calculated at the annual rate of
0.375% of the average daily net assets of IGSI.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
TIA has entered into a sub-administrative services agreement with SSBC. TIA pays
SSBC, as sub-administrator, a fee calculated at an annual rate of 0.10% of each
Portfolios average daily net assets.
Effective October 1999, Citi Fiduciary Trust Company ("CFTC"), another
subsidiary of Citigroup, became the Portfolios transfer agent and PFPC Global
Fund Services ("PFPC") became the sub-transfer agent. CFTC receives account fees
and asset-based fees that vary according to the size and type of account. PFPC
is responsible for shareholder recordkeeping and financial processing for all
shareholder accounts and is paid by CFTC. During the six months ended April 30,
2000, the Portfolios paid transfer agent fees of $7,500 to CFTC.
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions. During the six months
ended April 30, 2000, SSB received brokerage commissions in the amount of $3,536
for SBPB.
All officers and one Director of the Fund are employees of SSB.
3. Investments
For the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
SBIE SBPB IGSI
================================================================================
Purchases $75,325,961 $9,912,074 $2,577,075
--------------------------------------------------------------------------------
Sales 39,571,593 7,577,517 3,408,395
================================================================================
At April 30, 2000, the gross unrealized appreciation and depreciation of
investments for Federal income tax purposes were substantially as follows:
<TABLE>
<CAPTION>
SBIE SBPB IGSI
=======================================================================================
<S> <C> <C> <C>
Gross unrealized appreciation $197,183,994 $10,546,847 $ 289,731
Gross unrealized depreciation (13,462,322) (2,065,466) (2,504,253)
---------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $183,721,672 $ 8,481,381 $(2,214,522)
=======================================================================================
</TABLE>
4. Capital Loss Carryforward
At October 31, 1999, the Fund had capital loss carryforwards available to offset
future realized capital gains, if any, for Federal income tax purposes of
approximately $17,851,000, $4,675,000 and $2,005,000 for SBIE, SBPB and IGSI,
respectively. To the extent that these carryforward losses are used to offset
capital gains, it is probable that the gains so offset will not be distributed.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 29
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
The amounts and expiration of the carryforward losses are indicated below.
Expiration occurs on October 31 of the year indicated.
Portfolio 2003 2004 2005 2006 2007
================================================================================
SBIE $947,000 -- $2,625,000 $8,032,000 $6,247,000
--------------------------------------------------------------------------------
SBPB -- -- 484,000 4,191,000 --
--------------------------------------------------------------------------------
IGSI -- -- -- 852,000 1,153,000
================================================================================
5. Forward Foreign Currency Contracts
At April 30, 2000, the Portfolios had open forward foreign currency contracts as
described below. The Portfolios bear the market risk that arises from changes in
foreign currency exchange rates. The unrealized gain (loss) on the contracts is
reflected as follows:
Local Market Settlement Unrealized
Foreign Currency Currency Value Date Gain (Loss)
================================================================================
Smith Barney International Equity
To Buy:
Canadian Dollar 297,861 $ 201,026 5/1/00 $ (585)
Euro 2,376,210 2,165,447 5/2/00 (29,696)
Euro 2,413,580 2,199,502 5/3/00 731
Euro 439,268 400,306 5/31/00 (6,280)
Swedish Krona 27,925,626 3,119,136 5/2/00 (27,768)
Swedish Krona 10,799,143 1,206,204 5/3/00 539
--------------------------------------------------------------------------------
Total Unrealized Loss on Forward
Foreign Currency Contracts $(63,059)
================================================================================
INVESCO Global Strategic Income
To Sell:
Euro 1,075,000 $ 979,935 5/2/00 $(76,016)
================================================================================
6. Futures Contracts
Initial margin deposits are made upon entering into futures contracts and are
recognized as assets. Securities equal to the initial margin amount are
segregated by the custodian in the name of the broker. Additional securities are
also segregated up to the current market value of the futures contracts. During
the period the futures contract is open, changes in the value of the contract
are recognized as unrealized gains or losses by "marking to market" on a daily
basis to reflect the market value of the contract at the end of each day's
trading. Variation margin payments are received or made and recognized as assets
due from or liabilities due to broker, depending upon whether unrealized gains
or losses are incurred. When the contract is closed, the
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Portfolios record a realized gain or loss equal to the difference between the
proceeds from (or cost of) the closing transactions and the Portfolio's basis in
the contract.
The Portfolios enter into such contracts to hedge a portion of their portfolios.
The Portfolios bear the market risk that arises from changes in the value of the
financial instruments and securities indices (futures contracts).
At April 30, 2000, the Portfolios had no open futures contracts.
7. Option Contracts
Premiums paid when put or call options are purchased by the Portfolios represent
investments,which are marked-to-market daily and are included in the schedules
of investments. When a purchased option expires, the Portfolios will realize a
loss in the amount of the premium paid. When the Portfolios enter into closing
sales transaction, the Portfolios will realize a gain or loss depending on
whether the proceeds from the closing sales transactions are greater or less
than the premium paid for the option. When the Portfolios exercise a put
option,they will realize a gain or loss from the sale of the underlying security
and the proceeds from such sale will be decreased by the premium originally
paid. When the Portfolios exercise a call option, the cost of the security which
the Portfolios purchase upon exercise will be increased by the premium
originally paid.
At April 30, 2000, the Portfolios did not hold any purchased call or put
options.
When the Portfolios write a covered call or put option, an amount equal to the
premium received by the Portfolios is recorded as a liability, the value of
which is marked-to-market daily. When a written option expires, the Portfolios
realize a gain equal to the amount of the premium received. When the Portfolios
enter into a closing purchase transaction,the Portfolios realize a gain or loss
depending upon whether the cost of the closing transaction is greater or less
than the premium originally received,without regard to any unrealized gain or
loss on the underlying security, and the liability related to such option is
eliminated. When a written call option is exercised, the cost of the security
sold will be decreased by the premium originally received. When a written put
option is exercised, the amount of the premium originally received will reduce
the cost of the security which the Portfolios purchased upon exercise. When
written index options are exercised, settlement is made in cash.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 31
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
The risk associated with purchasing options is limited to the premium originally
paid. The Portfolios enter into options for hedging purposes. The risk in
writing a covered call option is that the Portfolios give up the opportunity to
participate in any increase in the price of the underlying security beyond the
exercise price. The risk in writing a put option is that the Portfolios are
exposed to the risk of loss if the market price of the underlying security
declines.
During the six months ended April 30, 2000, the Portfolios did not write any
options.
8. Reverse Repurchase Agreements
IGSI may enter into reverse repurchase agreement transactions for leveraging
purposes. A reverse repurchase agreement involves a sale by IGSI of securities
that it holds with an agreement by IGSI to repurchase the same securities at an
agreed upon price and date. A reverse repurchase agreement involves the risk
that the market value of the securities sold by IGSI may decline below the
repurchase price of the securities. IGSI will establish a segregated account
with its custodian, in which IGSI will maintain cash, U.S. government securities
or other liquid high grade debt obligations equal in value to its obligations
with respect to reverse repurchase agreements.
During the six months ended April 30, 2000, IGSI did not enter into any reverse
repurchase agreements.
9. Lending of Portfolio Securities
The Portfolios have an agreement with their custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities, high quality money market instruments or other
securities that are maintained at all times in an amount at least equal to the
current market value of the loaned securities, plus a margin which may vary
depending on the type of securities loaned. The custodian establishes and
maintains the collateral in segregated accounts.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
The Portfolios maintain exposure for the risk of any loss in the investment of
amounts received as collateral.
At April 30, 2000, the Portfolios listed below had loaned common stocks which
were collateralized by cash and securities. The market value for the securities
on loan for each Portfolio was as follows:
Portfolio Value
================================================================================
SBIE $59,447,248
--------------------------------------------------------------------------------
SBPB 1,195,364
--------------------------------------------------------------------------------
IGSI 2,985,133
================================================================================
At April 30, 2000, the cash collateral received for these securities on loan was
invested as follows:
Smith Barney International Equity Portfolio
Security Description Value
================================================================================
Time Deposits:
Abbey National, London, 6.080% due 5/2/00 $ 3,302,689
ABN AMRO Bank, London, 6.080% due 5/2/00 3,302,689
Allied Irish, London, 6.080% due 5/2/00 3,302,689
Banco Bilbao Viz Argentaria, Milan, 6.080% due 5/2/00 3,302,689
Banco Santander SA, London, 6.063% due 5/1/00 3,302,689
Bayerische Hypo-Und Vereinsbank, 6.063% due 5/1/00 3,302,689
Bayerische Landesbank, London, 6.080% due 5/2/00 3,302,689
Caisse de Depots et Consign, Paris, 6.063% due 5/1/00 3,302,690
Commerzbank AG, Frankfurt, 6.080% due 5/2/00 3,302,690
Credit Commerciale, London, 6.120% due 5/2/00 3,302,690
Credit Communal de Belgique, 6.063% due 5/1/00 3,302,690
Dresdner Bank, 6.080% due 5/1/00 3,302,690
Fortis Bank, London, 6.080% due 5/2/00 3,302,690
Halifax PLC, 6.080% due 5/2/00 3,302,690
National Bank of Australia, London, 6.080% due 5/2/00 3,302,690
Rabobank, London, 6.080% due 5/2/00 3,302,690
Societe Generale, 6.094% due 5/2/00 3,302,690
Toronto Dominion, London, 6.080% due 5/2/00 3,302,690
Unibank G.C., 6.063% due 5/1/00 1,713,013
Union Bank of Switzerland, G.C., 6.063% due 5/1/00 983,970
Westdeutsche Landesbank, London, 6.063% due 5/1/00 3,302,690
--------------------------------------------------------------------------------
Total $65,448,086
================================================================================
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 33
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Smith Barney Pacific Basin Portfolio
Security Description Value
================================================================================
Time Deposits:
Abbey National, London, 6.080% due 5/2/00 $ 56,870
ABN AMRO Bank, London, 6.080% due 5/2/00 56,870
Allied Irish, London, 6.080% due 5/2/00 56,870
Banco Bilbao Viz Argentaria, Milan, 6.080% due 5/2/00 56,870
Banco Santander SA, London, 6.063% due 5/1/00 56,871
Bayerische Hypo-Und Vereinsbank, 6.063% due 5/1/00 56,871
Bayerische Landesbank, London, 6.080% due 5/2/00 56,871
Caisse de Depots et Consign, Paris, 6.063% due 5/1/00 56,871
Commerzbank AG, Frankfurt, 6.080% due 5/2/00 56,871
Credit Commerciale, London, 6.120% due 5/2/00 56,871
Credit Communal de Belgique, 6.063% due 5/1/00 56,871
Dresdner Bank, 6.080% due 5/1/00 56,871
Fortis Bank, London, 6.080% due 5/2/00 56,871
Halifax PLC, 6.080% due 5/2/00 56,871
National Bank of Australia, London, 6.080% due 5/2/00 56,871
Rabobank, London, 6.080% due 5/2/00 56,871
Societe Generale, 6.094% due 5/2/00 56,871
Toronto Dominion, London, 6.080% due 5/2/00 56,871
Unibank G.C., 6.063% due 5/1/00 29,497
Union Bank of Switzerland, G.C., 6.063% due 5/1/00 16,943
Westdeutsche Landesbank, London, 6.063% due 5/1/00 56,871
--------------------------------------------------------------------------------
Total $1,126,985
================================================================================
INVESCO Global Strategic Income Portfolio
Security Description Value
================================================================================
Time Deposits:
Abbey National, London, 6.080% due 5/2/00 $ 155,529
ABN AMRO Bank, London, 6.080% due 5/2/00 155,529
Allied Irish, London, 6.080% due 5/2/00 155,529
Banco Bilbao Viz Argentaria, Milan, 6.080% due 5/2/00 155,528
Banco Santander SA, London, 6.063% due 5/1/00 155,528
Bayerische Hypo-Und Vereinsbank, 6.063% due 5/1/00 155,528
Bayerische Landesbank, London, 6.080% due 5/2/00 155,528
Caisse de Depots et Consign, Paris, 6.063% due 5/1/00 155,528
Commerzbank AG, Frankfurt, 6.080% due 5/2/00 155,528
Credit Commerciale, London, 6.120% due 5/2/00 155,528
Credit Communal de Belgique, 6.063% due 5/1/00 155,528
Dresdner Bank, 6.080% due 5/1/00 155,528
Fortis Bank, London, 6.080% due 5/2/00 155,528
Halifax PLC, 6.080% due 5/2/00 155,528
National Bank of Australia, London, 6.080% due 5/2/00 155,528
Rabobank, London, 6.080% due 5/2/00 155,528
Societe Generale, 6.094% due 5/2/00 155,528
Toronto Dominion, London, 6.080% due 5/2/00 155,528
Unibank G.C., 6.063% due 5/1/00 80,668
Union Bank of Switzerland, G.C., 6.063% due 5/1/00 46,337
Westdeutsche Landesbank, London, 6.063% due 5/1/00 155,528
--------------------------------------------------------------------------------
Total $3,082,040
================================================================================
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
In addition to the above noted cash collateral, the Portfolios held securities
collateral with a market value of $27,421, $292,719 and $2,654,668 for SBIE,
SBPB and IGSI, respectively, as of April 30, 2000.
Income earned by the Portfolios from securities loaned for the six months ended
April 30, 2000, was as follows:
================================================================================
SBIE $61,732
--------------------------------------------------------------------------------
SBPB 6,172
--------------------------------------------------------------------------------
IGSI 5,346
================================================================================
10. Portfolio Concentration
The Portfolios investments in foreign securities may involve risks not present
in domestic investments. Since securities may be denominated in a foreign
currency and may require settlement in foreign currencies and pay interest or
dividends in foreign currencies, changes in the relationship of these foreign
currencies to the U.S. dollar can significantly affect the value of the
investments and earnings of the Portfolios. Foreign investments may also subject
the Portfolios to foreign government exchange restrictions, expropriation,
taxation or other political, social or economic developments, all of which could
affect the market and/or credit risk of the investments. As of April 30, 2000,
66.5% of SBPBs total investments were concentrated in Japan.
In addition to the risks described above, risks may arise from forward foreign
currency contracts with respect to the potential inability of counter-parties to
meet the terms of their contracts.
11. Securities Traded on a To-Be-Announced Basis
SBIE and IGSI may trade securities on a "to-be-announced"("TBA") basis. In a TBA
transaction, the Portfolios commit to purchasing or selling securities for which
specific information is not yet known at the time of the trade, particularly the
face amount and maturity date in GNMA transactions. Securities purchased on a
TBA basis are not settled until they are delivered to the Portfolios, normally
15 to 45 days later. These transactions are subject to market fluctuations and
their current value is determined in the same manner as for other securities.
At April 30, 2000, the Portfolios did not hold any TBA securities.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 35
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
12. Capital Shares
At April 30, 2000, the Fund had six billion shares of capital stock authorized
with a par value of $0.00001 per share. Each share of a Portfolio represents an
equal proportionate interest in that Portfolio with each share of the same
Portfolio and has an equal entitlement to any dividends and distributions made
by the Portfolio.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
================================================================================
Smith Barney International Equity
Shares sold 20,853,679 37,523,494
Shares issued on reinvestment -- 59,764
Shares reacquired (15,918,672) (37,128,444)
--------------------------------------------------------------------------------
Net Increase 4,935,007 454,814
================================================================================
Smith Barney Pacific Basin
Shares sold 230,092 2,264,030
Shares issued on reinvestment -- --
Shares reacquired (145,588) (1,971,974)
--------------------------------------------------------------------------------
Net Increase 84,504 292,056
================================================================================
INVESCO Global Strategic Income
Shares sold 46,107 132,083
Shares issued on reinvestment -- 144,792
Shares reacquired (251,148) (562,926)
--------------------------------------------------------------------------------
Net Decrease (205,041) (286,051)
================================================================================
--------------------------------------------------------------------------------
36 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney International
Equity Portfolio 2000(1)(2) 1999 1998 1997 1996 1995
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.92 $12.60 $13.23 $12.18 $10.48 $10.55
-------------------------------------------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income 0.00* 0.02 0.05 0.01 0.02 0.03#
Net realized and unrealized
gain (loss) 4.19 4.35 (0.68) 1.05 1.69 (0.10)
-------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 4.19 4.37 (0.63) 1.06 1.71 (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.05) -- (0.01) (0.01) --
-------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.05) -- (0.01) (0.01) --
-------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $21.11 $16.92 $12.60 $13.23 $12.18 $10.48
-------------------------------------------------------------------------------------------------------------------------------
Total Return 24.76%++ 34.73% (4.76)% 8.73% 16.36% (0.66)%
-------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $489 $309 $224 $219 $143 $54
-------------------------------------------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(3) 0.95%+ 1.00% 1.00% 1.01% 1.10% 1.44%
Net investment income 0.02+ 0.16 0.37 0.09 0.23 0.25
-------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 30% 36% 34% 38% 41% 29%
===============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the montly average shares
method.
(3) During the years ended October 31, 1996 and 1995, the Portfolio had earned
credits from the custodian which reduced service fees incurred. When the
credits are taken into consideration the expense ratios are 1.05% and
1.21%, respectively.
* Amount represents less than $0.01.
# Includes realized gains and losses from foreign currency transactions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 37
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney Pacific
Basin Portfolio 2000(1)(2) 1999 1998(2) 1997 1996 1995
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 11.77 $ 6.81 $ 8.04 $ 9.75 $ 8.95 $ 10.10
---------------------------------------------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income (loss)(3) (0.01) (0.14) -- (0.01) 0.08 (0.04)#
Net realized and unrealized
gain (loss) (0.00)* 5.10 (1.14) (1.64) 0.75 (1.11)
---------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations (0.01) 4.96 (1.14) (1.65) 0.83 (1.15)
---------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- -- (0.09) (0.06) (0.03) --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.09) (0.06) (0.03) --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.76 $ 11.77 $ 6.81 $ 8.04 $ 9.75 $ 8.95
---------------------------------------------------------------------------------------------------------------------------------
Total Return (0.08)% ++ 72.83% (14.09)% (17.02)% 9.26% (11.39)%
---------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $ 26 $ 25 $ 13 $ 18 $ 17 $ 7
---------------------------------------------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(3) 1.26%+ 1.30% 1.56% 1.38% 1.34% 1.83%
Net investment income (loss) (0.77)+ (0.29) (0.03) (0.08) 0.47 (0.51)
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 26% 99% 136% 156% 59% 28%
=================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager waived all or part of its fees for the years ended October 31,
1996 and October 31, 1995. If such fees were not waived, the effect on the
net investment income (loss) and the expense ratios would have been as
follows:
Per Share (Increase) Expense Ratio
Decrease to Net Without Fee Waiver
Investment Income (Loss) and Custody Credits
------------------------ -------------------
1996 $ 0.02 1.58%
1995 (0.03) 2.23
In addition, during the years ended October 31, 1996 and 1995, the
Portfolio had earned credits from the custodian which reduced service fees
incurred. If the credits are taken into consideration the expense ratios
are 1.17% and 1.30%, respectively.
* Amount represents less than $0.01.
# Includes realized gains and losses from foreign currency transactions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
38 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
INVESCO Global Strategic
Income Portfolio 2000(1) 1999 1998 1997(2) 1996 1995
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.22 $10.97 $12.52 $12.45 $10.77 $ 9.95
---------------------------------------------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income(3) 0.50 0.75 0.84 0.75 0.74 0.64*
Net realized and unrealized
gain (loss) (0.32) (0.85) (1.09) 0.36 1.36 0.28
---------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.18 (0.10) (0.25) 1.11 2.10 0.92
---------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.65) (0.66) (0.46) (0.42) (0.10)
Net realized gains -- -- (0.64) (0.58) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.65) (1.30) (1.04) (0.42) (0.10)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.40 $10.22 $10.97 $12.52 $12.45 $10.77
---------------------------------------------------------------------------------------------------------------------------------
Total Return 1.76%++ $(0.96)% (2.50)% 9.32% 20.07% 9.37%
---------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $ 22 $ 23 $ 28 $ 29 $ 19 $ 8
---------------------------------------------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(3) 1.10%+ 1.13% 1.03% 1.07% 1.23% 1.47%
Net investment income 7.95+ 6.43 7.31 6.05 6.87 6.44
---------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 12% 135% 280% 161% 192% 295%
=================================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager waived all or part of its fees for the years ended October 31,
1996 and October 31, 1995. If such fees were not waived, the per share
effect on net investment income and expense ratios would have been as
follows:
Expense Ratio
Per Share Decreases Without Fee Waiver
to Net Investment Income and Custody Credits
------------------------ -------------------
1996 $0.02 1.38%
1995 0.04 1.93
In addition, during the years ended October 31, 1996 and 1995, the
Portfolio had earned credits from the custodian which reduced service fees
incurred. If the credits are taken into consideration the expense ratios
are 1.11% and 1.11%, respectively.
* Includes realized gains and losses from foreign currency transactions.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 39
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
A member of citigroup
Directors
Victor K. Atkins
A. E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Jeffrey J. Russell
Vice President
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Managers
SSB Citi Fund Management LLC
Travelers Investment Adviser, Inc.
Custodian
The Chase Manhattan Bank
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, Connecticut 06183
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. - Smith Barney International Equity, Smith Barney
Pacific Basin and INVESCO Global Strategic Income Portfolios. It is not
authorized for distribution to prospective investors unless accompanied or
preceded by a current Prospectus for the Portfolios, which contains information
concerning the Portfolios' investment policies and expenses as well as other
pertinent information
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York
IN0802 6/00
<PAGE>
Travelers Series Fund Inc.
MFS Total Return Portfolio
Travelers Managed Income Portfolio
Smith Barney Money Market Portfolio
--------------------
SEMI - ANNUAL REPORT
--------------------
April 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Travelers Series Fund Inc.
[PHOTO]
HEATH B. MCLENDON
Chairman
Dear Shareholder:
We are pleased to provide the semi-annual report for the Travelers Series Fund
Inc. -- MFS Total Return Portfolio, Travelers Managed Income Portfolio and Smith
Barney Money Market Portfolio ("Portfolio(s)") for the period ended April 30,
2000. For your convenience, we have summarized the period's prevailing economic
and market conditions and outlined each Portfolio's investment strategy1. A
detailed summary of performance and current holdings can be found in the
appropriate sections that follow. We hope you find this report useful and
informative.
Portfolio Highlights2
MFS Total Return Portfolio
For the six months ended April 30, 2000, the MFS Total Return Portfolio
("Portfolio") returned 1.36%. In comparison, the Standard & Poor's 500 Index
("S&P 500")3 returned 7.18% and the Lehman Brothers Government/Corporate Bond
Index4 returned 1.51% for the same period.
The Portfolio's primary investment objective is to offer above average income
(compared to a portfolio invested entirely in equity securities) consistent with
the prudent employment of capital. The Portfolio's secondary investment
objective is growth of capital and income. The Portfolio invests in a broad
range of equity and fixed income securities of both U.S. and foreign issuers.
-------------
1 The information provided represents the opinion of the manager and is not
intended to be a forecast of future events, a guarantee of future results nor
investment advice. Further, there is no assurance that certain securities
will remain in or out of the Portfolios.
2 The following securities reflect the holdings of the Portfolios as of April
30, 2000. After such date this information may not reflect the current
Portfolio holdings. Stock information is for information purposes. It should
not be relied upon for current prices of shares or for trading securities.
Further, there is no assurance that securities will remain in or out of the
Portfolios. Please refer to pages 10 through 26 for the percentage breakdown
of the Portfolios' holdings.
3 The S&P 500 is a market capitalization-weighted measure of 500 widely held
common stocks. An investor can not invest directly in the index.
4 The Lehman Brothers Government/Corporate Bond Index tracks the performance of
the overall bond market and is a broad measure of the performance of
government and corporate fixed-rate debt issues. An investor can not invest
directly in an index.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 1
<PAGE>
The Portfolio faced several challenges during the reporting period. The
Portfolio's managers focus on value stocks negatively impacted performance as
investors favored growth stocks by ever-widening margins. (Value investing
consists of identifying securities of companies that are believed to be
undervalued but have positive longer-term business prospects. Growth stocks are
shares of those companies that are expected to grow earnings faster than the
overall market.) Many value stocks tend to be in mature industries, such as the
energy, financial services, and industrial sectors. In contrast, many technology
and health care companies have demonstrated their ability to grow earnings
despite a lack of overall pricing flexibility. As a result, most investors
continued to favor companies in these sectors,once again showing their
preference for growth stocks.
The Portfolio's holdings in some of the stock market's weakest sectors, in
addition to the Portfolio's 40% bond weighting,negatively impacted performance
during the period. The Portfolio's holdings in financial services and electric
utilities sectors underperformed the overall market during the period. In the
financial services sector, both bank and insurance stocks declined due to higher
interest rates.
The managers continued to focus on insurance stocks, where a trend of
consolidation, which has already radically changed the banking industry, has
just begun. The managers believe this trend towards consolidation may benefit
regional insurance companies such as Hartford Financial Services Group and
Lincoln National. (Of course, no guarantees can be given that the managers'
expectations will come true.) The managers also maintained the Portfolio's
holdings in the electric utilities sector which negatively impacted the
Portfolio's performance during the period.
The Portfolio's holdings in the telecommunications and energy sectors positively
contributed to performance during the period. The telecommunications sector
continued to benefit from the worldwide explosion in data communications and
Internet traffic. The Portfolio's positions in Bell Atlantic,Sprint and
Telephone and Data Systems, a cellular phone company outperformed the overall
market during the period. Additionally, the Portfolio's holdings in the energy
sector offered solid returns during the period, in large part due to rising oil
prices, what the managers deemed to be a promising supply/demand outlook and
industry consolidation.
During the reporting period, the managers identified several non-U.S. companies
that they deemed to be undervalued in the market relative to their long-term
potential. The managers believe that companies such as Royal Dutch, an energy
company, Pharmacia-Upjohn, a pharmaceutical company, are poised to benefit over
the long-term as they begin to initiate plans to effectively compete on a global
scale. The managers also added to the Portfolio's holdings in Japan, including
Nippon Telephone & Telegraph, the large telephone utility. The managers are
confident that these companies may benefit from the continued economic recovery
in Japan.
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
During the reporting period, the managers began accumulating shares of oil
service companies such as Noble Drilling and exploration companies Apache and
Devon Energy. The managers anticipate that the shares of these companies may
positively contribute to Portfolio performance over the long term due to
expected earnings growth during the course of the year. The managers also added
newspaper publishers Gannett and The New York Times Co. to the Portfolio. These
companies presently have seen their revenue increase largely due to Internet
advertising.
The managers also added wireless communications equipment manufacturer Motorola
to the Portfolio when it was selling at what the managers believed was a
favorable price. In the opinion of the managers, the Portfolio's holdings in SBC
Communications and Exxon should benefit performance over the long term, as these
companies may be well positioned to become dominant players in their respective
markets.
The managers made a few changes to the Portfolio's bond holdings during the
period. The managers maintained a significant holding in corporate bonds, with
the remainder allocated to U.S. Treasuries and mortgage-backed securities.
During the period, the manager raised the average duration of the bond portfolio
to 5.9 years. (Duration is a measure of a security's sensitivity to changes in
interest rates.) The duration of the bond portfolio was raised in response to
the managers' belief that interest rates may only increase moderately in the
year ahead. The managers do not anticipate that inflation should become a
significant problem.
Looking ahead, the Portfolio's managers believe that their investment approach
of selecting securities with long-term growth potential may offer investors the
opportunity to participate in the performance of the stock market with some
degree of protection in the event of a market downturn. While no guarantees can
be given, the managers are confident that the stocks held in the Portfolio
should offer long-term growth.
Travelers Managed Income Portfolio
For the six months ended April 30, 2000, the Travelers Managed Income Portfolio
("Portfolio") returned 1.48%. In comparison, the Lehman Brothers Intermediate
Government/Corporate Index ("Index")5 returned 1.07% for the same period.
The Portfolio seeks high current income consistent with prudent risk of capital.
The Portfolio invests primarily in U.S. corporate debt and U.S. government
securities, including mortgage and asset backed securities but may also invest
to a limited extent in foreign issues.
-------------
5 The Lehman Brothers Intermediate Government Corporate Index is a broad-based
unmanaged index of bonds issued by the U.S. Government and its agencies as
well as certain corporate issuers. An investor cannot invest directly in an
index.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 3
<PAGE>
In our view, the issues that significantly impacted the performance of the bond
market during the period were the increase in interest rates by the Federal
Reserve Board ("Fed"), the U.S. Treasury's buy back program, reduced inflows,
investor concerns regarding credit quality, and the extreme levels of market
volatility and illiquidity.
The Fed raised interest rates three times for a total of 75 basis points6 during
the reporting period, and more recently, on May 16, 2000, raised interest rates
an additional 50 basis points to 6.50%. Furthermore, the Federal Open Market
Committee, led by Alan Greenspan, indicated at their last meeting that it will
implement more rate increases in the months to come, if necessary. In addition,
the plan by the U.S. Treasury to buy back more than $30 billion of its long-term
debt obligation has led to reduced supply in the market.
As such, the price of longer-term bonds increased in relation to their
shorter-term counterparts, as reflected by an inverted yield curve. (The yield
curve is the graphical depiction of the relationship between the yield on bonds
of the same credit quality but different maturities.) Instead of a "normal"
yield curve, with yields rising steadily along with the maturity of Treasury
bonds, the highest yields were for shorter-term bonds.
During the period, the Portfolio's duration was shorter than the Index, due to
the challenges that faced the bond market during the reporting period. (Duration
is a measure of a security's sensitivity to changes in interest rates. The
higher the number, the greater sensitivity to interest rate volatility.) In
addition, the average credit quality of the Portfolio ranged from A to BBB, as
rated by Moody's Investor's Service and Standard & Poor's, two major
credit-reporting and bond rating agencies. The managers also consolidated
several of the Portfolio's positions with the objective of obtaining an optimal
level of yield.
The continued strength of the stock markets and the inverted yield curve have
made investing in bonds more challenging. In the view of the managers, bond
investing may remain difficult in the year to come, as the Fed most likely will
look to raise rates at the next meeting in the end of June. While no guarantees
can be given, the managers believe that their investment approach will continue
to offer investors the optimal balance of potential return and manageable risk.
Smith Barney Money Market Portfolio
The primary investment objective of the Smith Barney Money Market Portfolio
("Portfolio") is to obtain maximum current income and preservation of capital.
For the six months ended April 30, 2000, the Portfolio returned 2.70%.
-------------
6 A basis point is 0.01% or one one-hundredth of a percent.
--------------------------------------------------------------------------------
4 2000 Semi-Annual Report to Shareholders
<PAGE>
Please note that an investment in the Portfolio is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Portfolio seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the Portfolio.
The Federal Reserve Board ("Fed") raised interest rates 75 basis points during
the reporting period in response to robust economic growth. Most recently, on
May 16, 2000, the Federal Open Market Committee ("FOMC") raised rates an
additional 50 basis points to 6.50%. The FOMC has continued to address its
concerns that the demand for goods and services is growing faster than the
supply, possibly leading to inflation.
Although strong economic growth has continued for the last several years, signs
of inflation are beginning to emerge. The Consumer Price Index ("CPI") is at an
annual rate of 3.7%, its highest level since 1991. Many companies have been
faced with rising labor costs and benefit costs as falling unemployment has
pushed costs higher due to a short supply of eligible workers.
The managers anticipate that the Fed will continue to raise rates throughout the
year. The money market yield curve has begun to steepen to reflect higher rates.
One-year securities in early April were yielding 5.75% and as of April 30, 2000
were offered at a 7.00% yield. Over the last several months, the Portfolio's
managers have been maintaining a shorter average maturity to take advantage of
higher reinvestment rates.
The managers continue to purchase high quality bonds and corporate securities.
Several new issuers were added to the managers' "approved list" during the
period, including Bell Atlantic Network Funding, Shell U.K. and Exxon/Mobil
Australia. In the view of the managers', these companies are well positioned to
benefit from anticipated changes in their respective industries.
In closing, thank you for your investment in the Travelers Series Fund Inc. We
look forward to helping you pursue your investment goals in the years ahead.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
May 29, 2000
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 5
<PAGE>
--------------------------------------------------------------------------------
MFS Total Return Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-------------------
Beginning End of Income Capital Gains Total
Period Ended of Period Period Dividends Distribution Returns+
================================================================================
4/30/00 $ 16.22 $ 16.44 $ 0.00 $ 0.00 1.36%++
--------------------------------------------------------------------------------
10/31/99 16.23 16.22 0.37 0.88 7.62
--------------------------------------------------------------------------------
10/31/98 15.31 16.23 0.28 0.48 10.94
--------------------------------------------------------------------------------
10/31/97 13.13 15.31 0.29 0.18 20.64
--------------------------------------------------------------------------------
10/31/96 11.53 13.13 0.27 0.08 17.16
--------------------------------------------------------------------------------
10/31/95 9.98 11.53 0.05 0.00 16.12
--------------------------------------------------------------------------------
6/16/94* - 10/31/94 10.00 9.98 0.00 0.00 (0.20)++
================================================================================
Total $ 1.26 $ 1.62
================================================================================
--------------------------------------------------------------------------------
Travelers Managed Income Portfolio
--------------------------------------------------------------------------------
Historical Performance
--------------------------------------------------------------------------------
Net Asset Value
-------------------
Beginning End of Income Capital Gains Total
Period Ended of Period Period Dividends Distribution Returns+
================================================================================
4/30/00 $ 11.49 $11.66 $ 0.00 $ 0.00 1.48%++
--------------------------------------------------------------------------------
10/31/99 11.65 11.49 0.29 0.07 1.75
--------------------------------------------------------------------------------
10/31/98 11.55 11.65 0.54 0.02 5.71
--------------------------------------------------------------------------------
10/31/97 11.06 11.55 0.49 0.00 9.19
--------------------------------------------------------------------------------
10/31/96 11.16 11.06 0.46 0.15 4.61
--------------------------------------------------------------------------------
10/31/95 10.04 11.16 0.13 0.00 12.68
--------------------------------------------------------------------------------
6/16/94* - 10/31/94 10.00 10.04 0.00 0.00 0.40++
================================================================================
Total $ 1.91 $ 0.24
================================================================================
It is the Funds' policy to distribute dividends and capital gains, if any,
annually.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Average Annual Total Return+
--------------------------------------------------------------------------------
Travelers
MFS Total Managed
Return Income
Portfolio Portfolio
================================================================================
Six Months Ended 4/30/00++ 1.36% 1.48%
--------------------------------------------------------------------------------
Year Ended 4/30/00 (0.14) 1.51
--------------------------------------------------------------------------------
Five Years Ended 4/30/00 13.31 6.02
--------------------------------------------------------------------------------
6/16/94* through 4/30/00 12.35 6.03
================================================================================
--------------------------------------------------------------------------------
Cummulative Total Return+
--------------------------------------------------------------------------------
Travelers
MFS Total Managed
Return Income
Portfolio Portfolio
================================================================================
6/16/94* through 4/30/00 98.23% 41.06%
================================================================================
+ Assumes the reinvestment of all dividends and capital gains distributions
at net asset value.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
* Commencement of operations.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 7
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of
MFS Total Return Portfolio vs. S&P 500 Index and
Lehman Brothers Government Corporate Bond Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
[GRAPH]
MFS Total Return\ Lehman Brothers\Government
Portfolio S&P 500 Index Corporate\Bond Index
--------------------------------------------------------------------------------
6/16/94 10,000 10,000 10,000
Oct-94 9,980 10,324 10,075
Oct-95 11,589 13,053 11,704
Oct-96 13,577 16,018 12,335
Oct-97 16,380 21,159 13,423
Oct-98 18,172 25,817 14,802
Oct-99 19,558 32,442 14,703
4/30/00 19,823 37,272 15,150
+ Hypothetical illustration of $10,000 invested in shares of the MFS Total
Return Portfolio on June 16, 1994 (commencement of operations), assumes
reinvestment of dividends and capital gains, if any, at net asset value
through April 30, 2000. The Standard & Poor's 500 Composite Stock Index
("S&P 500 Index") is an index of widely held common stocks listed on the
New York and American Stock Exchanges and the over-the-counter markets.
Figures for the S&P 500 Index include reinvestment of dividends. The Lehman
Brothers Government/Corporate Bond Index is comprised of over 5,000 issues
of U.S. Government Treasury and Agency securities and Corporate and Yankee
securities. The indexes are unmanaged and are not subject to the same
management and trading expenses of a mutual fund. An investor cannot invest
directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Shares of the
Travelers Managed Income Portfolio vs.
Lehman Brothers Aggregate Bond Index+
--------------------------------------------------------------------------------
June 1994 -- April 2000
TBC Managed Income\Portfolio Lehman Brothers\Aggregate Bond Index
--------------------------------------------------------------------------------
6/16/94 10,000 10,000
Oct-94 10,040 10,052
Oct-95 11,313 11,626
Oct-96 11,835 12,305
Oct-97 12,923 13,399
Oct-98 13,661 14,651
Oct-99 13,900 14,730
4/30/00 14,106 15,150
+ Hypothetical illustration of $10,000 invested in shares of the Travelers
Managed Income Portfolio on June 16, 1994 (commencement of operations),
assumes reinvestment of dividends and capital gains, if any, at net asset
value through April 30, 2000. The Lehman Brothers Aggregate Bond Index is
comprised of over 6,500 issues of U.S. Treasury and Agency securities,
Corporate Bonds and Mortgage-Backed securities. The index is unmanaged and
is not subject to the same management and trading expenses of a mutual
fund. An investor cannot invest directly in an index.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 51.9%
Aerospace -- 0.8%
35,500 Boeing Co. $ 1,408,906
48,700 United Technologies Corp. 3,028,531
--------------------------------------------------------------------------------
4,437,437
--------------------------------------------------------------------------------
Automotive -- 1.4%
202,700 Delphi Automotive Systems Corp.(a) 3,876,638
77,300 Ford Motor Co. 4,227,344
--------------------------------------------------------------------------------
8,103,982
--------------------------------------------------------------------------------
Banks and Credit Companies -- 1.9%
85,599 Bank of America Corp. 4,194,351
48,400 Bank of New York Co., Inc. 1,987,425
30,600 Bank One Corp. 933,300
58,600 PNC Financial Services Group 2,556,425
19,200 State Street Corp. 1,860,000
--------------------------------------------------------------------------------
11,531,501
--------------------------------------------------------------------------------
Business Machines -- 0.4%
8,500 Hewlett-Packard Co. 1,147,500
10,200 International Business Machines Corp. 1,138,575
--------------------------------------------------------------------------------
2,286,075
--------------------------------------------------------------------------------
Business Services -- 0.8%
50,300 Automatic Data Processing, Inc. 2,706,769
31,800 CVS Trust Automatic Common Exchange Securities 2,480,400
--------------------------------------------------------------------------------
5,187,169
--------------------------------------------------------------------------------
Capital Goods -- 0.4%
56,500 Ingersoll-Rand Co. 2,651,969
--------------------------------------------------------------------------------
Cellular Phones -- 0.5%
30,700 Telephone & Data Systems Inc. 3,131,400
--------------------------------------------------------------------------------
Chemicals -- 1.3%
133,100 Air Products and Chemicals, Inc. 4,134,419
105,300 Rohm & Haas Co. 3,751,312
--------------------------------------------------------------------------------
7,885,731
--------------------------------------------------------------------------------
Communications Equipment -- 0.7%
35,700 Motorola Inc. 4,250,531
--------------------------------------------------------------------------------
Communication Services -- 4.0%
63,700 AT&T Corp. 2,973,994
9,000 Alltel Corp. 599,625
21,400 Bell Atlantic Corp. 1,267,950
159,700 GTE Corp. 10,819,675
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Communication Services -- 4.0% (continued)
5,900 MediaOne Group, Inc. $ 446,187
29,500 Nippon Telegraph & Telephone Corp., Sponsored ADR 1,878,781
141,424 SBC Communications Inc. 6,196,139
10,400 Sprint Corp. (FON Group) 639,600
--------------------------------------------------------------------------------
24,821,951
--------------------------------------------------------------------------------
Conglomerates -- 2.0%
3,400 General Electric Co. 534,650
59,800 Honeywell International, Inc. 3,348,800
135,100 TRW Inc. 7,903,350
8,456 Tyco International Ltd. 388,447
--------------------------------------------------------------------------------
12,175,247
--------------------------------------------------------------------------------
Consumer Goods and Services -- 0.6%
74,000 Fortune Brands Inc. 1,850,000
32,900 Kimberly-Clark Corp. 1,910,256
--------------------------------------------------------------------------------
3,760,256
--------------------------------------------------------------------------------
Electrical Equipment - Utilities -- 1.3%
132,300 Emerson Electric Co. 7,259,963
14,800 W.W. Grainger Inc. 641,950
--------------------------------------------------------------------------------
7,901,913
--------------------------------------------------------------------------------
Entertainment -- 1.0%
15,000 CBS Corp. 881,250
4,000 Eastman Kodak Co. 223,750
37,800 Time Warner Inc. 3,399,637
37,500 Walt Disney Co. 1,624,219
--------------------------------------------------------------------------------
6,128,856
--------------------------------------------------------------------------------
Financial Institutions -- 2.4%
96,900 A.G. Edwards Inc. 3,645,863
31,300 Freddie Mac 1,437,844
149,100 Mellon Financial Corp. 4,789,837
21,900 Merrill Lynch & Co., Inc. 2,232,431
32,000 Morgan Stanley Dean Witter & Co. 2,456,000
--------------------------------------------------------------------------------
14,561,975
--------------------------------------------------------------------------------
Food and Beverages -- 2.5%
28,000 Anheuser-Busch Cos., Inc. 1,975,750
190,266 Archer-Daniels-Midland Co. 1,890,768
12,400 Bestfoods 623,100
86,300 General Mills Inc. 3,139,163
34,200 Hershey Foods Corp. 1,551,825
25,600 McCormick & Co., Inc. 798,400
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Food and Beverages -- 2.5% (continued)
86,000 Quaker Oats Co. $ 5,606,125
--------------------------------------------------------------------------------
15,585,131
--------------------------------------------------------------------------------
Forest and Paper Products -- 0.7%
66,500 Bowater Inc. 3,657,500
20,700 International Paper Co. 760,725
--------------------------------------------------------------------------------
4,418,225
--------------------------------------------------------------------------------
Gaming -- 0.6%
123,000 Harrah's Entertainment, Inc. 2,529,188
46,000 MGM Grand, Inc.(a) 1,357,000
--------------------------------------------------------------------------------
3,886,188
--------------------------------------------------------------------------------
Healthcare -- 3.4%
144,800 Abbott Laboratories 5,565,750
71,400 American Home Products Corp. 4,011,788
8,900 Baxter International Inc. 579,613
54,300 Bristol-Myers Squibb Co. 2,847,356
27,601 CIGNA Corp. 2,201,180
1,780 Edwards Lifesciences Corp. 26,700
94,789 Pharmacia Corp. 4,733,526
19,300 Smithkline Beecham, ADR 1,326,875
--------------------------------------------------------------------------------
21,292,788
--------------------------------------------------------------------------------
Insurance -- 5.9%
30,500 Allstate Corp. 720,563
4,500 American International Group, Inc. 493,594
146,700 AXA Financial Inc. 4,786,088
29,400 Chubb Corp. 1,870,575
166,600 Hartford Financial Services Group, Inc. 8,694,438
31,250 Jefferson-Pilot Corp. 2,080,078
37,600 Marsh & McLennan Co., Inc. 3,705,950
135,000 Lincoln National Corp. 4,699,687
96,800 ReliaStar Financial Corp. 4,168,450
152,900 St. Paul Cos. 5,447,062
--------------------------------------------------------------------------------
36,666,485
--------------------------------------------------------------------------------
Metals and Minerals -- 0.2%
15,100 Alcoa Inc. 979,613
--------------------------------------------------------------------------------
Oil Production -- 10.7%
54,900 Apache Corp. 2,659,219
199,206 BP Amoco PLC, ADR 10,159,506
12,900 Chevron Corp. 1,098,113
204,900 Coastal Corp. 10,283,419
130,400 Conoco Inc., Class A Shares 3,105,150
See Notes to Financial Statements.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Oil Production -- 10.7% (continued)
107,900 Devon Energy Corp. $5,199,431
109,753 Exxon Mobil Corp. 8,526,436
156,300 Halliburton Co. 6,906,506
94,600 National Fuel Gas Co. 4,487,587
198,700 Noble Drilling Corp.(a) 7,935,581
85,900 Royal Dutch Petroleum Co. ADR 4,928,512
20,200 Transocean Sedco Forex Inc. 949,400
--------------------------------------------------------------------------------
66,238,860
--------------------------------------------------------------------------------
Printing and Publishing -- 1.9%
79,000 Gannett Co., Inc 5,046,125
103,500 The New York Times Co., Class A Shares 4,262,906
67,800 Tribune Co. 2,635,725
--------------------------------------------------------------------------------
11,944,756
--------------------------------------------------------------------------------
Railroads -- 0.2%
60,800 Burlington Northern Santa Fe Corp. 1,466,800
--------------------------------------------------------------------------------
Real Estate -- 0.4%
57,400 Equity Residential Properties Trust 2,611,700
--------------------------------------------------------------------------------
Retail Stores -- 0.8%
114,400 The Kroger Co. 2,123,550
70,100 Safeway Inc. 3,093,162
--------------------------------------------------------------------------------
5,216,712
--------------------------------------------------------------------------------
Special Products and Services -- 1.9%
103,300 Deere & Co. 4,170,738
65,700 McDonald's Corp. 2,504,812
112,500 The Williams Cos., Inc. 4,197,656
44,800 Xerox Corp. 1,184,400
--------------------------------------------------------------------------------
12,057,606
--------------------------------------------------------------------------------
Utilities - Electric -- 1.7%
68,000 Carolina Power & Light Co. 2,486,250
28,100 CMS Energy Corp. 533,900
56,500 Duke Energy Corp. 3,248,750
25,000 PECO Energy Co. 1,042,187
65,900 Pinnacle West Capital Corp. 2,314,737
56,100 Sierra Pacific Resources 848,512
--------------------------------------------------------------------------------
10,474,336
--------------------------------------------------------------------------------
Utilities - Gas -- 1.5%
36,400 Columbia Energy Group 2,284,100
49,700 Eastern Enterprises 3,025,488
57,100 El Paso Energy Corp. 2,426,750
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
Utilities - Gas -- 1.5% (continued)
49,200 Washington Gas Light Co. $ 1,260,750
--------------------------------------------------------------------------------
8,997,088
--------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $299,294,767) 320,652,281
================================================================================
CONVERTIBLE PREFERRED STOCK -- 1.7%
Consumer Goods and Services -- 0.2%
24,300 Seagram Co. Ltd., 7.500% 1,236,262
--------------------------------------------------------------------------------
Containers and Packaging -- 0.1%
38,000 Owens-Illinois Inc., 4.750% 916,750
--------------------------------------------------------------------------------
Insurance -- 0.3%
90,200 Lincoln National Corp., 7.750% 1,950,575
--------------------------------------------------------------------------------
Oil and Gas -- 0.2%
22,200 Apache Corp., 6.500% 983,738
--------------------------------------------------------------------------------
Utilities - Electric -- 0.6%
40,000 CMS Energy Corp., 8.750% 1,060,000
34,000 NiSource Inc., 7.750% 1,315,375
27,200 Texas Utilities Co., 9.250% 1,173,000
--------------------------------------------------------------------------------
3,548,375
--------------------------------------------------------------------------------
Utilities - Gas -- 0.3%
36,500 El Paso Energy Corp., 4.750% 2,007,500
--------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost -- $12,127,833) 10,643,200
================================================================================
PREFERRED STOCK -- 0.0%
Printing and Publishing -- 0.0%
10,075 NB Capital Corp., 8.350% (Cost -- $251,875) 224,798
================================================================================
FOREIGN COMMON STOCK -- 3.0%
France -- 0.2%
7,000 AXA Financial, Inc. 1,040,434
--------------------------------------------------------------------------------
Netherlands -- 1.8%
153,200 Akzo Nobel N.V. 6,286,710
89,921 ING Groep N.V. 4,918,355
--------------------------------------------------------------------------------
11,205,065
--------------------------------------------------------------------------------
Switzerland -- 0.6%
1,890 Nestle S.A. 3,339,495
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
SHARES SECURITY VALUE
================================================================================
United Kingdom -- 0.4%
334,800 Diageo PLC $ 2,716,393
--------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCK
(Cost -- $20,181,938) 18,301,387
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 14.8%
U.S. Treasury Notes:
$ 1,575,000 6.625% due 9/15/09 1,502,156
5,000,000 4.250% due 1/15/10 5,107,550
3,601,000 6.500% due 2/15/10 3,673,668
U.S. Treasury Bonds:
10,254,000 9.875% due 11/15/15 13,815,419
7,398,000 6.125% due 8/15/29 7,412,204
4,195,000 6.250% due 5/15/30 4,363,975
1,855,000 Federal Home Loan Bank, 5.700% due 3/3/09 1,642,788
1,455,552 Federal Home Loan Mortgage Corporation (FHLMC),
6.500% due 11/1/28 1,360,942
Federal National Mortgage Association (FNMA):
2,512,000 5.250% due 1/15/09 2,178,909
1,400,000 5.722% due 3/25/09 1,239,437
7,519,000 7.250% due 1/15/10 7,499,751
11,786,583 6.500% due 8/1/28 to 12/1/28 11,005,721
557,094 6.500% due 1/1/29 520,188
Government National Mortgage Association (GNMA):
1,462,257 7.500% due 8/15/25 to 12/15/25 1,438,951
316,702 8.000% due 6/20/25 312,066
1,879,291 7.500% due 3/15/26 to 11/15/26 1,849,341
6,042,663 8.000% due 1/15/26 to 7/15/26 6,061,520
3,855,495 7.500% due 2/15/27 to 12/15/27 3,794,045
3,303,697 6.500% due 12/15/28 3,097,216
4,759,058 7.000% due 4/1/28 to 10/15/28 4,580,593
1,017,524 6.500% due 5/15/29 to 6/15/29 953,929
7,057,340 8.000% due 11/15/29 to 12/15/29 7,079,355
1,098,286 8.000% due 2/15/30 1,101,713
--------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS (Cost -- $94,119,349) 91,591,437
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================
CORPORATE BONDS -- 20.6%
Airlines -- 1.1%
$ 541,741 AAA American Airlines Inc., 6.855% due 4/15/09 $ 526,185
1,874,122 AA- Atlas Air Inc., 7.200% due 1/2/19 1,739,739
Continental Airlines Inc.:
354,887 BBB+ 9.500% due 10/15/13 361,595
619,546 AA+ 6.648% due 3/15/19 557,846
1,201,778 AA+ 6.545% due 8/2/20 1,080,194
Jet Equipment Trust:
250,000 A+ 9.410% due 6/15/10(c) 264,821
179,381 A+ 8.640% due 11/1/12(c) 180,565
100,000 BBB 10.690% due 11/1/13(c) 109,370
300,000 BBB 11.440% due 11/1/14(c) 332,340
1,477,509 AA Northwest Airlines, 6.810% due 2/1/20 1,347,481
--------------------------------------------------------------------------------
6,500,136
--------------------------------------------------------------------------------
Automotive -- 1.4%
785,000 BBB AMERCO, 7.850% due 5/15/03 754,581
DaimlerChrysler AG:
4,865,000 A+ 6.630% due 9/21/01 4,810,269
1,650,000 A+ 7.400% due 1/20/05 1,637,625
Ford Motor Co.:
588,000 A 6.625% due 10/1/28 502,740
425,000 A 8.900% due 1/15/32 465,906
345,000 A General Motors Corp., 9.400% due 7/15/21 390,713
--------------------------------------------------------------------------------
8,561,834
--------------------------------------------------------------------------------
Bank/Finance -- 4.6%
1,530,000 AAA AIG Sunamerica Global Financing I,
7.400% due 5/5/03(c) 1,529,067
Associates Corp.:
510,000 Aa3* 5.750% due 11/1/03 481,950
1,511,000 Aa3* 5.500% due 2/15/04 1,399,564
1,932,000 BB- Beaver Valley Funding Corp., 9.000% due 6/1/17 1,922,340
400,000 BB+ Capital One Financial Corp., 7.250% due 12/1/03 390,000
1,233,000 A+ Chase Manhattan Corp., 6.750% due 12/1/04 1,188,304
400,000 BB Colonial Capital II, 8.920% due 1/15/27 359,500
540,000 A Countrywide Home Loans, Inc., 6.250% due 4/15/09 471,825
457,000 A Fleet National Bank, 5.750% due 1/15/09 397,019
Ford Motor Credit:
460,000 A 6.700% due 7/16/04 442,750
1,466,000 A 7.750% due 2/15/07 1,478,828
2,082,000 A 7.375% due 10/28/09 2,016,938
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================================
<S> <C> <C> <C>
Bank/Finance -- 4.6% (continued)
GE Capital Corp.:
$ 1,232,000 AAA 7.250% due 2/1/05 $ 1,227,380
429,000 AAA 8.500% due 3/1/07 460,103
1,168,000 AAA 8.700% due 3/1/07 1,243,920
313,000 AAA 8.750% due 5/21/07 334,519
553,000 AAA 8.500% due 7/24/08 586,180
General Motors Acceptance Corp.:
1,204,000 A 6.750% due 12/10/02 1,181,425
652,000 A 5.950% due 3/14/03 624,290
4,000,000 A+ The Goldman Sachs Group, Inc., 5.900% due
1/15/03(c) 3,840,000
2,085,000 BB+ GS Escrow Corp., 6.750% due 8/1/01 2,012,025
588,000 A+ John Deere Capital Corp., 7.000% due 10/15/02 579,180
Midamerican Funding LLC:
780,000 BBB+ 5.850% due 3/1/01 769,275
1,083,000 BBB+ 6.927% due 3/1/29 935,441
71,605 BBB- Midland Funding Corp. I, 10.330% due 7/23/02 74,290
109,000 BB Midland Funding Corp. II, 11.750% due 7/23/05 114,995
1,061,000 A+ Morgan Stanley Dean Witter & Co., 7.125% due
1/15/03 1,049,064
658,000 Ba3* Providian National Bank, 9.525% due 2/1/27(c) 560,123
350,000 BBB+ TXU Eastern Funding, 6.150% due 5/15/02(c) 339,500
600,000 BBB- Washington Mutual Capital Trust, 8.375% due 6/1/27 569,250
--------------------------------------------------------------------------------
28,579,045
--------------------------------------------------------------------------------
Building and Construction -- 0.2%
1,486,000 BB+ Mcdermott Inc., 9.375% due 3/15/02 1,116,357
--------------------------------------------------------------------------------
Chemicals and Minerals -- 0.3%
2,133,000 BB Lyondell Chemical Co., 9.625% due 5/1/07 2,109,004
--------------------------------------------------------------------------------
Collateralized Mortgage Obligations -- 1.6%
664,070 AAA Beneficial Mortgage Corp., 6.248% due 9/28/37 660,040
1,174,021 Aaa* Bear Stearns Commerical Mortgage Securities,
6.800% due 9/15/08 1,135,584
281,500 Baa2* Blackrock Capital Finance L.P., 7.750% due 9/25/26 85,242
817,000 AAA Chase Commercial Mortgage Securities, 6.390% due
11/18/08 753,772
CRIIMI MAE Commercial Mortgage Trust:
420,000 A 6.701% due 5/20/08(c) 375,900
2,150,000 A 7.000% due 3/2/11 1,839,258
1,349,874 AAA Ford Credit Auto Owner Trust, 6.200% due 4/15/02 1,344,813
377,000 AAA Illinois Power Special Purpose Trust, 5.260% due
6/25/03 371,092
396,000 AAA J.P. Morgan Commercial Mortgage Finance Corp.,
6.613% due 1/15/30 368,943
Residential Accredit Loans, Inc.:
1,300,000 AAA 7.000% due 3/25/28 1,211,372
1,740,000 AAA 6.750% due 10/25/28 1,608,525
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================
Collateralized Mortgage Obligations -- 1.6% (continued)
$ 351,000 AAA Residential Funding Mortgage Securities,
7.660% due 9/25/12 $ 348,971
--------------------------------------------------------------------------------
10,103,512
--------------------------------------------------------------------------------
Consumer Goods and Services -- 0.2%
412,000 A Eaton Corp., 6.950% due 11/15/04 400,155
112,000 BBB- Jones Apparel Group, 6.250% due 10/1/01(c) 108,360
280,000 BBB Nabisco Inc., 6.375% due 2/1/05 250,600
430,000 BBB- Tommy Hilfiger USA, 6.500% due 6/1/03 344,000
--------------------------------------------------------------------------------
1,103,115
--------------------------------------------------------------------------------
Entertainment/Media -- 2.6%
1,556,000 BBB- Comcast Corp., 9.125% due 10/15/06 1,624,075
1,803,000 BBB- Hearst Argyle TV Inc., 7.500% due 11/15/27 1,631,715
Joseph Seagram Inc.:ns
1,066,000 BBB- 5.790% due 4/15/01 1,047,345
1,565,000 BBB- 6.400% due 12/15/03 1,492,619
320,000 BBB- 7.500% due 12/15/18 302,000
317,000 BBB- 7.600% due 12/15/28 296,395
News American Holdings, Inc.:
1,073,000 BBB- 6.703% due 5/21/04 1,018,009
267,000 BBB- 6.625% due 1/9/08 239,299
635,000 BBB- 7.300% due 4/30/28 531,812
Time Warner Inc.:
5,407,000 BBB 6.100% due 12/30/01(c) 5,285,343
1,326,000 BBB 10.150% due 5/1/12 1,534,845
152,000 BBB 8.375% due 3/15/23 154,470
730,000 BBB 8.375% due 7/15/33 737,300
--------------------------------------------------------------------------------
15,895,227
--------------------------------------------------------------------------------
Forest and Paper Products -- 0.4%
Georgia-Pacific Corp.:
1,929,000 BBB- 9.950% due 6/15/02 2,003,749
200,000 BBB- 9.875% due 11/1/21 209,750
200,000 B+ US Timberlands Co., L.P., 9.625% due 11/15/07 177,000
--------------------------------------------------------------------------------
2,390,499
--------------------------------------------------------------------------------
Insurance -- 0.3%
1,885,000 A AFLAC Inc., 6.500% due 4/15/09 1,722,419
176,000 BBB Atlantic Mutual Insurance Co., 8.150% due 2/1 136,180
--------------------------------------------------------------------------------
1,858,599
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================
Oil/Oil Services -- 0.5%
$ 1,294,000 BBB Coastal Corp., 6.200% due 5/15/04 $ 1,222,830
1,007,000 A- Northern Natural Gas, 7.000% due 6/1/11(c) 936,510
888,000 BBB- Occidental Petroleum Corp., 6.400% due 4/1/03 849,150
115,000 BBB Ultramar Diamond Shamrock,7.200% due 10/15/17 105,656
--------------------------------------------------------------------------------
3,114,146
--------------------------------------------------------------------------------
Railroad -- 0.2%
Union Pacific Corp.:
396,000 BBB- 5.780% due 10/15/01 384,120
990,000 BBB- 6.340% due 11/25/03 945,450
--------------------------------------------------------------------------------
1,329,570
--------------------------------------------------------------------------------
Real Estate -- 0.1%
375,000 A Socgen Real Estate LLC, 7.640% due 12/29/49(c) 338,437
--------------------------------------------------------------------------------
Retail Stores -- 0.4%
Federated Department Stores:
1,639,000 BBB+ 8.500% due 6/15/03 1,671,780
1,070,000 BBB+ 6.300% due 4/1/09 973,700
--------------------------------------------------------------------------------
2,645,480
--------------------------------------------------------------------------------
Telecommunications -- 2.6%
339,000 A+ AT&T Capital Corp., 6.250%due 5/15/01 336,034
2,046,000 AAA Bellsouth Capital Funding,7.750% due 2/15/10 2,038,328
Cable & Wireless Communications:
1,913,000 A 6.750% due 3/6/08 1,893,870
592,000 A 6.750% due 12/1/08 585,340
1,600,000 BB- Century Communications Corp., zero coupon
bond to yield 8.788% due 1/15/08 676,000
1,000,000 B1* FrontierVision L.P., 11.000% due 10/15/06 1,025,000
100,000 A- MCI Worldcom Inc., 8.875% due 1/15/06 103,375
215,000 BBB Metronet Communications, step bond to
yield 8.561% due 6/15/08 169,581
1,343,000 BB+ Qwest Communications International Inc.,
7.500% due 11/1/08 1,289,280
Sprint Capital Corp.:
1,622,000 BBB+ 6.500% due 11/15/01 1,603,752
1,992,000 BBB+ 5.875% due 5/1/04 1,874,970
857,000 BBB+ 6.375% due 5/1/09 774,514
1,676,000 BBB+ 6.900% due 5/1/19 1,493,735
2,235,000 A TCI Communications Inc., 9.650% due 3/31/27 2,427,769
--------------------------------------------------------------------------------
16,291,548
--------------------------------------------------------------------------------
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================
Utilities -- 4.1%
CalEnergy Co., Inc.:
$ 10,000 BBB- 7.230% due 9/15/05 $ 9,575
5,000 BBB- 7.520% due 9/15/08 4,750
1,846,000 BBB- CE Generation LLC, 7.416% due 12/15/18 1,635,117
Cleveland Electric Illuminating Co.:
137,000 BB+ 7.670% due 7/1/04 133,918
500,000 BB+ 7.880% due 11/1/17 471,875
388,000 BB+ 9.000% due 7/1/23 391,395
CMS Energy Corp.:
619,000 BB 8.000% due 7/1/01 612,036
2,482,000 BB 8.375% due 7/1/03 2,404,438
1,900,000 BB 6.750% due 1/15/04 1,719,500
1,271,000 BBB+ Commonwealth Edison, 8.500% due 7/15/22 1,263,056
Connecticut Lighting & Power Co.:
137,000 BBB- 7.875% due 6/1/01 137,171
1,500,000 N/R 8.590% due 6/5/03(c) 1,447,014
500,000 BBB- 7.875% due 10/1/24 497,500
El Paso Electric Co.:
428,000 BBB- 8.250% due 2/1/03 429,070
135,000 BBB- 8.900% due 2/1/06 138,544
471,000 BBB+ Entergy Mississippi Inc., 6.200% due 5/1/04 443,329
309,147 BBB- GG1B Funding Corp., 7.430% due 1/15/11 288,666
236,000 BBB- Gulf States Utilities, 8.250% due 4/1/04 237,475
Niagara Mohawk Power Corp.:
1,260,414 BBB- 7.250% due 10/1/02 1,243,084
188,000 BBB+ 7.375% due 8/1/03 184,945
676,707 BBB- 7.625% due 10/1/05 654,714
1,870,000 BBB+ 7.750% due 5/15/06 1,839,612
1,003,000 BBB 8.770% due 1/1/18 1,006,761
450,000 BBB+ 8.750% due 4/1/22 449,437
140,000 BBB+ 8.500% due 7/1/23 137,725
122,000 BB+ North Atlantic Energy Service Co., 9.050% due 6/1/02 120,627
209,028 BB+ Northeast Utilities, 8.580% due 12/1/06 202,235
470,000 BBB- NRG Energy Inc., 8.700% due 3/15/05(c) 462,424
Salton Sea Funding:
76,523 BBB 7.370% due 5/30/05 74,132
1,100,000 BBB 7.840% due 5/30/10 1,071,125
400,000 BBB Texas Gas Transmission Corp., 7.250% due 7/15/27 358,500
482,000 BBB Texas Utilities, 5.940% due 10/15/01 472,360
1,288,000 BB+ Toledo Edison Co., 7.875% due 8/1/04 1,270,290
330,000 BBB Utilicorp United Inc., 7.000% due 7/15/04 315,563
1,112,414 BBB- Waterford 3 Funding - Entergy, 8.090% due 1/2/17 1,060,965
See Notes to Financial Statements.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
FACE
AMOUNT RATING(b) SECURITY VALUE
================================================================================
Utilities -- 4.1% (continued)
$ 353,000 BBB Williams Gas Pipeline, 7.375% due 11/15/06(c) $ 341,969
2,007,000 A+ Wisconsin Electric Power, 6.625% due 12/1/02 1,969,098
--------------------------------------------------------------------------------
25,499,995
--------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost -- $133,956,095) 127,436,504
================================================================================
CONVERTIBLE CORPORATE BONDS -- 1.0%
Insurance -- 0.7%
4,850,000 A+ Loews Corp., 3.125% due 9/15/07 4,286,187
--------------------------------------------------------------------------------
Specialty Products and Services -- 0.3%
3,960,000 A- Xerox Corp., 0.570% due 4/21/18 2,158,200
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost -- $6,540,468) 6,444,387
================================================================================
FOREIGN BONDS -- 0.1%
Luxembourg -- 0.1%
816,000 AAA AIG SunAmerica Institutional Funding II, 5.750% due 2/16/09
(Cost -- $780,066) 709,920
================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $567,252,391) 576,003,914
================================================================================
SHORT-TERM SECURITIES -- 6.9%
42,400,000 Federal Home Loan Bank, 5.880% due 5/1/00
(Cost -- $42,386,149) 42,386,149
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $609,638,540**) $ 618,390,063
================================================================================
(a) Non-income producing security.
(b) All ratings are by Standard & Poor's Ratings Service, except those
identified byan asterisk (*), which are rated by Moody's Investors Service,
Inc.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. The securities may be sold in transactions that are exempt from
registration, normally to qualified institutional buyers.
** Aggregate cost for Federal income tax purposes is substantially the same.
See page 27 for definition of ratings.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
TRAVELERS MANAGED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
==============================================================================================
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 16.9%
U.S. Treasury Notes:
$ 8,999,545 3.625% due 7/15/02 $ 8,984,966
9,000,000 12.000% due 8/15/13 12,049,650
76,775 Federal National Mortgage Association (FNMA),
6.889% due 6/17/11 72,879
----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS (Cost -- $21,193,236) 21,107,495
==============================================================================================
FACE
AMOUNT RATING(a) SECURITY VALUE
==============================================================================================
CORPORATE BONDS -- 71.4%
Financial Services -- 30.9%
5,250,000 A+ AT&T Captial Corp., 6.250% due 5/15/01 5,204,063
5,500,000 Aa3* Bank of America Corp., 7.800% due 2/15/10 5,500,000
1,700,000 A3* Banponce Financial, 7.300% due 6/5/02 1,680,875
5,000,000 BBB+ Comdisco Inc., 7.250% due 9/20/01 4,962,500
3,000,000 BBB+ Finova Captial Corp., 6.310% due 11/6/00 2,986,440
275,000 BB+ Golden State Holdings Corp., 7.000% due 8/1/03 251,969
1,050,000 BBB+ MBNA America Bank, 6.000% due 12/26/00 1,040,813
2,900,000 BBB+ Orix Credit Alliance, 6.780% due 5/15/01(b) 2,878,250
5,300,000 BBB Osprey Trust, 8.310% due 1/15/03(b) 5,280,125
5,400,000 BBB PP&L Capital Funding, 7.750% due 4/15/05 5,312,250
3,700,000 A2* Telecom Newzeal Finance, 6.250% due 2/10/03(b) 3,581,615
----------------------------------------------------------------------------------------------
38,678,900
----------------------------------------------------------------------------------------------
Healthcare -- 1.8%
2,400,000 Ba2* Columbia/HCA Healthcare Corp., 6.630% due 7/15/45 2,259,000
----------------------------------------------------------------------------------------------
Hotels -- 7.5%
5,000,000 BBB+ Marriott International Inc., Series C, 7.875% due 9/15/09 4,875,000
4,700,000 BBB- Park Place Entertainment Corp., 7.950% due 8/1/03(b) 4,535,500
----------------------------------------------------------------------------------------------
9,410,500
----------------------------------------------------------------------------------------------
Industrial -- 0.2%
Navistar International Corp.:
140,000 BBB- Sr. Notes, 7.000% due 2/1/03 135,100
75,000 BB+ Series B, 8.000% due 2/1/08 70,875
----------------------------------------------------------------------------------------------
205,975
----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
TRAVELERS MANAGED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
==============================================================================================
<C> <C> <S> <C>
Oil -- 4.1%
$ 5,100,000 Baa1* Noram Energy, Inc., 7.500% due 8/1/00 $ 5,100,000
35,000 BBB- Norcen Energy Resources Ltd., 7.375% due 5/15/06 33,337
----------------------------------------------------------------------------------------------
5,133,337
----------------------------------------------------------------------------------------------
Real Estate Investment Trusts -- 3.9%
4,850,000 BBB CarrAmerica Realty Corp., 6.625% due 10/1/00 4,829,290
----------------------------------------------------------------------------------------------
Retail -- 2.7%
800,000 A2* Dayton Hudson Corp., 6.800% due 10/1/01 792,000
Saks Inc.:
1,275,000 Baa3* 7.250% due 12/1/04 1,187,343
1,600,000 Baa3* 7.500% due 12/1/10 1,388,000
----------------------------------------------------------------------------------------------
3,367,343
----------------------------------------------------------------------------------------------
Tobacco -- 5.6%
Nabisco Inc.:
5,500,000 BBB 6.700% due 6/15/02 5,252,500
280,000 BBB 6.000% due 2/15/01 274,400
1,490,000 A Philip Morris Cos., 7.500% due 1/15/02 1,454,612
----------------------------------------------------------------------------------------------
6,981,512
----------------------------------------------------------------------------------------------
Telecommunications -- 4.3%
5,500,000 A2* Vodafone Airtouch PLC, 7.750% due 2/15/10(b) 5,417,500
----------------------------------------------------------------------------------------------
Transportation -- 1.0%
1,250,000 BBB- Union Pacific Corp., 9.650% due 6/1/00 1,253,125
----------------------------------------------------------------------------------------------
Utilities -- 9.4%
2,500,000 Baa2* Cilcorp Inc., 9.375% due 10/15/29 2,560,250
CMS Energy Corp.:
3,600,000 BB 6.750% due 1/15/04 3,258,000
1,150,000 BB 7.625% due 11/15/04 1,058,000
5,200,000 BBB UtiliCorp United Inc., 6.875% due 10/1/04 4,940,000
----------------------------------------------------------------------------------------------
11,816,250
----------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost -- $90,976,945) 89,352,732
==============================================================================================
<CAPTION>
SHARES SECURITY VALUE
==============================================================================================
WARRANTS(c) -- 0.0%
<C> <S> <C>
150 Loral Orion Network Systems, Inc., Expire 1/31/07
(Cost -- $105) 1,200
==============================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $112,170,286) 110,461,427
==============================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
TRAVELERS MANAGED INCOME PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
==============================================================================================
REPURCHASE AGREEMENT -- 11.7%
<C> <S> <C>
$14,632,000 CS First Boston Corp., 5.650% due 5/1/00;
Proceeds at maturity -- $14,638,888; (Fully
collateralized by U.S. Treasury Notes,
6.125% due 7/31/01; Market value -- $14,924,664)
(Cost -- $14,632,000) $ 14,632,000
==============================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $126,802,286**) $125,093,427
==============================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Services ("Standard &
Poor's"), except that those which are identified by an asterisk (*) are
rated by Moody's Investors Service Inc. ("Moody's").
(b) Security is exempt from registration under Rule 144A of the Securities Act
1933. This security may be sold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(c) Non-income producing security.
** Aggregate cost for Federal income tax purposes is substantially the same.
See page 27 for definition of ratings.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) April 30, 2000
--------------------------------------------------------------------------------
SMITH BARNEY MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=================================================================================================
COMMERCIAL PAPER -- 77.6%
<C> <S> <C> <C>
$ 5,550,000 A.I. Credit matures 5/11/00 6.35% $ 5,540,750
8,000,000 Abbey National N.A. matures 5/31/00 6.08 7,959,733
5,000,000 AIG Funding matures 5/9/00 5.98 4,993,367
5,000,000 Anz Delaware Inc. matures 5/8/00 6.04 4,994,157
10,000,000 AT&T Corp. matures 5/10/00 6.03 9,985,000
4,900,000 Bank of America Corp. matures 10/27/00 6.70 4,742,122
5,000,000 Bank of New York matures 5/30/00 6.23 4,975,028
8,000,000 Barclays U.S. Funding matures 5/17/00 6.04 7,978,631
5,000,000 BCI Funding Corp. mature 5/19/00 to 6/5/00 6.08 to 6.12 4,979,187
5,000,000 BellSouth Telecommunications matures 5/8/00 5.96 4,994,215
8,000,000 British Telecommunication matures 5/8/00 6.03 7,990,667
5,000,000 Cariplo Finance Inc. matures 5/9/00 6.05 4,993,311
7,000,000 Chase Manhattan Bank Corp. matures 5/3/00 6.03 6,997,667
4,000,000 Credito Italiano Delaware Inc. matures 5/25/00 6.10 3,983,813
10,000,000 Cregem North America matures 5/15/00 6.03 9,976,667
8,000,000 CS First Boston Corp. mature 5/10/00 to 5/25/00 6.00 to 6.02 7,980,753
8,000,000 DaimlerChrysler N.A. matures 5/15/00 6.05 7,981,271
4,900,000 Den Danske Corp. matures 5/3/00 6.01 4,898,388
5,000,000 General Electric Capital Corp. matures 6/5/00 6.16 4,970,444
5,000,000 Goldman, Sachs & Co. matures 5/15/00 6.10 4,988,217
5,900,000 GTE Funding Corp. matures 5/22/00 6.05 5,879,281
8,000,000 Halifax matures 5/2/00 6.04 7,998,662
12,900,000 International Lease Finance mature
5/1/00 to 5/18/00 6.02 to 6.06 12,877,616
6,000,000 J.P. Morgan & Co. mature 5/5/00 to 5/8/00 5.96 to 6.05 5,994,007
5,000,000 Lloyds Bank matures 5/26/00 6.05 4,979,097
8,000,000 Nationwide Building Society matures 5/10/00 6.05 7,987,960
3,500,000 Oesterreich Kontrollbank matures 6/2/00 6.13 3,481,116
5,000,000 Procter & Gamble Co. Inc. matures 5/17/00 6.02 4,986,667
3,000,000 San Paolo U.S. Finance Inc. matures 6/27/00 6.22 2,970,930
5,000,000 Sara Lee Corp. matures 5/15/00 6.04 4,988,333
7,000,000 Societe Generale matures 5/23/00 6.08 6,974,248
10,000,000 Union Bank of Switzerland matures 5/1/00 6.04 10,000,000
8,000,000 Walt Disney Co. matures 5/4/00 6.00 7,996,013
8,000,000 Wells Fargo Co. mature 5/1/00 to 5/15/00 6.05 to 6.08 7,992,953
5,000,000 Woolwich Building Society matures 6/30/00 6.19 4,949,167
-------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $225,959,438) 225,959,438
=================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) April 30,2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMITH BARNEY MONEY MARKET PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
================================================================================================
<C> <S> <C> <C>
DOMESTIC BANK OBLIGATIONS -- 1.0%
$ 3,000,000 Bank of America matures 5/8/00 (Cost -- $3,000,000) 6.02% $ 3,000,000
================================================================================================
U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES -- 3.1%
5,000,000 FHLMC matures 5/16/00 5.88 4,987,791
4,000,000 FNMA matures 6/8/00 6.03 3,974,920
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
AND INSTRUMENTALITIES (Cost -- $8,962,711) 8,962,711
================================================================================================
FOREIGN CERTIFICATES OF DEPOSIT -- 11.7%
5,000,000 Bank Austriengellschaft matures 5/8/00 6.00 5,000,010
8,000,000 Canadian Imperial Bank mature 5/8/00 to 5/16/00 6.03 to 6.07 8,000,000
3,000,000 Deutsche Bank matures 9/19/00 6.35 2,999,469
7,000,000 Harris Bank matures 5/10/00 6.04 7,000,000
3,000,000 National Westminster Bank PLC matures 7/10/00 6.20 2,999,494
5,000,000 Svenska Handlesbanken matures 6/15/00 6.16 4,999,464
3,000,000 Toronto Dominion matures 9/25/00 6.45 2,998,878
------------------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $33,997,315) 33,997,315
================================================================================================
TIME DEPOSITS -- 5.1%
10,000,000 Paribas matures 5/1/00 6.06 10,000,000
5,000,000 Westdeutsche Landesbank matures 5/3/00 5.99 5,000,000
------------------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $15,000,000) 15,000,000
================================================================================================
SUB-TOTAL INVESTMENTS
(Cost -- $286,919,464) 286,919,464
================================================================================================
REPURCHASE AGREEMENT -- 1.5%
4,356,000 Morgan Stanley Dean Witter & Co., 6.060% due 5/1/00;
Proceeds at maturity -- $4,358,200; (Fully collateralized
by U.S. Treasury Bills due 5/1/00;
Market value -- $4,356,000) (Cost -- $4,356,000) 4,356,000
================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $291,275,464**) $291,275,464
================================================================================================
</TABLE>
** Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Bond Ratings (unaudited)
--------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard and Poor's") -- Ratings from "AA"
to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show
relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and
repay principal and differs from the highest rated issue only in a
small degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
bonds in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to
pay interest and repay principal. Whereas they normally exhibit
adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for bonds in this
category than in higher rated categories.
BB, B and -- Bonds rated "BB" and "B" are regarded, on balance, as predominantly
CCC speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. "BB"
represents a lower degree of speculation than "B," and "CCC" the
highest degree of speculation. While such bonds will likely have
some quality and protective characteristics, these are outweighted
by large uncertainties or major risk exposure to adverse
conditions.
Moody's Investors Service, Inc. ("Moody's") -- Numerical modifiers 1, 2 and 3
may be applied to each generic rating from "A" to "Caa," where 1 is the highest
and 3 the lowest rating within its generic category.
A -- Bonds rated "A" possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate,
but elements may be present that suggest a susceptibility to
impairment some time in the future.
Baa -- Bonds rated "Baa" are considered to be medium grade obligations,
i.e., they are neither highly protected nor poorly secured.
Interest payment and principal security appear adequate for the
present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba -- Bonds rated "Ba" are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection
of interest and principal payments may be very moderate thereby not
well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class.
B -- Bonds rated "B" generally lack characteristics of the desirable
investments. Assurance of interest and principal payments or
maintenance of other terms of the contract over any long period of
time may be small.
Caa -- Bonds that are rated "Caa" are of poor standing. Such issues may be
in default or present elements of danger with respect to principal
or interest.
NR -- Indicates that the bond is not rated by Standard & Poor's or
Moody's.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
=============================================================================================
<S> <C> <C> <C>
ASSETS:
Investments -- Cost $ 567,252,391 $ 112,170,286 --
Repurchase Agreements -- Cost -- 14,632,000 $ 4,356,000
Short-Term Investments -- Cost 42,386,149 -- 286,919,464
=============================================================================================
Investments -- Value $ 576,003,914 $ 110,461,427 --
Repurchase Agreements -- Value -- 14,632,000 $ 4,356,000
Short-Term Investments -- Value 42,386,149 -- 286,919,464
Cash 52,032 96 195
Receivable for securities sold 1,028,957 -- --
Dividends and interest receivable 4,667,405 1,797,240 347,726
---------------------------------------------------------------------------------------------
Total Assets 624,138,457 126,890,763 291,623,385
---------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 2,123,095 -- --
Management fees payable 393,070 118,198 100,861
Dividends payable -- -- 316,942
Accrued expenses 54,549 44,206 69,050
---------------------------------------------------------------------------------------------
Total Liabilities 2,570,714 162,404 486,853
---------------------------------------------------------------------------------------------
Total Net Assets $ 621,567,743 $ 126,728,359 $ 291,136,532
=============================================================================================
NET ASSETS:
Par value of capital shares $ 378 $ 109 $ 2,911
Capital paid in excess of par value 559,270,738 124,005,584 291,133,618
Undistributed net investment income 27,972,542 8,736,665 3
Accumulated net realized gain (loss)
from security transactions 25,548,534 (4,305,140) --
Net unrealized appreciation (depreciation)
of investments and foreign currencies 8,775,551 (1,708,859) --
---------------------------------------------------------------------------------------------
Total Net Assets $ 621,567,743 $ 126,728,359 $ 291,136,532
=============================================================================================
Shares Outstanding 37,811,741 10,865,444 291,136,529
---------------------------------------------------------------------------------------------
Net Asset Value $16.44 $11.66 $1.00
---------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
Travelers Smith Barney
MFS Total Managed Money
Return Income Market
Portfolio Portfolio Portfolio
======================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 9,334,370 -- --
Interest 3,652,203 $ 4,300,564 $8,685,681
Less: Foreign withholding tax (40,461) -- --
------------------------------------------------------------------------------------------------------
Total Investment Income 12,946,112 4,300,564 8,685,681
------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 3) 2,438,475 387,932 734,768
Custody 29,264 3,438 13,310
Shareholder communications 22,312 8,824 8,736
Audit and legal 13,330 8,626 12,667
Pricing service fees 8,112 2,552 --
Directors' fees 7,982 2,442 3,240
Shareholder and system servicing fees 7,792 7,519 3,549
Registration fees 1,766 5,131 2,002
Other 6,186 2,916 1,147
------------------------------------------------------------------------------------------------------
Total Expenses 2,535,219 429,380 779,419
------------------------------------------------------------------------------------------------------
Net Investment Income 10,410,893 3,871,184 7,906,262
------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES (NOTE 4):
Realized Gain (Loss) From Security Transactions
(excluding short-term securities*):
Proceeds from sales 287,907,412 94,929,123 7,900,522,962
Cost of securities sold 283,670,130 96,366,020 7,900,522,959
------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 4,237,282 (1,436,897) 3
------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation
(Depreciation) of Investments and
Foreign Currencies:
Beginning of period 15,594,261 (1,061,999) --
End of period 8,775,551 (1,708,859) --
------------------------------------------------------------------------------------------------------
Change in Net Unrealized
Appreciation (Depreciation) (6,818,710) (646,860) --
------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (2,581,428) (2,083,757) 3
------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 7,829,465 $ 1,787,427 $7,906,265
======================================================================================================
</TABLE>
* Represents only gains from the sale of short-term securities for the Smith
Barney Money Market Portfolio.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 29
<PAGE>
-------------------------------------------------------------------------------
Statements of Changes in Net Assets
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
MFS Total Return Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income $ 10,410,893 $ 17,479,668
Net realized gain 4,237,282 21,518,408
Decrease in net unrealized appreciation (6,818,710) (1,626,169)
-------------------------------------------------------------------------------
Increase in Net Assets From Operations 7,829,465 37,371,907
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (12,662,011)
Net realized gains -- (29,755,229)
-------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (42,417,240)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 11):
Net proceeds from sale of shares 23,607,228 130,645,660
Net asset value of shares issued
for reinvestment of dividends -- 42,417,240
Cost of shares reacquired (31,697,331) (8,462,964)
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (8,090,103) 164,599,936
-------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (260,638) 159,554,603
NET ASSETS:
Beginning of period 621,828,381 462,273,778
-------------------------------------------------------------------------------
End of period* $ 621,567,743 $ 621,828,381
===============================================================================
*Includes undistributed net investment income of: $ 27,972,542 $ 17,561,649
===============================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
-------------------------------------------------------------------------------
Statements of Changes in Net assets (continued)
-------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
Travelers Managed Income Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income $ 3,871,184 $ 4,849,698
Net realized loss (1,436,897) (2,852,152)
Increase in net unrealized depreciation (646,860) (506,464)
-------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,787,427 1,491,082
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (2,440,976)
Net realized gains -- (606,387)
-------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders -- (3,047,363)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 11):
Net proceeds from sale of shares 15,592,239 58,483,264
Net asset value of shares issued
for reinvestment of dividends -- 3,047,363
Cost of shares reacquired (3,692,121) (4,489,228)
-------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 11,900,118 57,041,399
-------------------------------------------------------------------------------
Increase in Net Assets 13,687,545 55,485,118
NET ASSETS:
Beginning of period 113,040,814 57,555,696
-------------------------------------------------------------------------------
End of period* $126,728,359 $113,040,814
===============================================================================
*Includes undistributed net investment income of: $ 8,736,665 $ 4,865,481
===============================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 31
<PAGE>
===============================================================================
Statements of Changes in Net Assets (continued)
===============================================================================
For the Six Months Ended April 30, 2000 (unaudited)
and the Year Ended October 31, 1999
Smith Barney Money Market Portfolio 2000 1999
===============================================================================
OPERATIONS:
Net investment income $ 7,906,262 $ 9,746,393
Net realized gain 3 994
-------------------------------------------------------------------------------
Increase in Net Assets From Operations 7,906,265 9,747,387
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 2):
Net investment income (7,906,259) (9,746,393)
Net realized gains (3) (994)
-------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (7,906,262) (9,747,387)
-------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 11):
Net proceeds from sale of shares 673,463,484 1,748,940,316
Net asset value of shares issued
for reinvestment of dividends 7,954,408 9,720,254
Cost of shares reacquired (666,980,402) (1,646,638,975)
-------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 14,437,490 112,021,595
-------------------------------------------------------------------------------
Increase in Net Assets 14,437,493 112,021,595
NET ASSETS:
Beginning of period 276,699,039 164,677,444
-------------------------------------------------------------------------------
End of period $ 291,136,532 $ 276,699,039
===============================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
The MFS Total Return, Travelers Managed Income and Smith Barney Money Market
Portfolios ("Portfolio(s)") are separate investment portfolios of the Travelers
Series Fund Inc. ("Fund"). The Fund, a Maryland corporation, is registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company and consists of these Portfolios and twelve other
separate investment portfolios: Alliance Growth, AIM Capital Appreciation,
INVESCO Global Strategic Income, Putnam Diversified Income, Smith Barney High
Income, Smith Barney Large Cap Value, Smith Barney International Equity, Smith
Barney Pacific Basin, Smith Barney Large Capitalization Growth,Van Kampen
Enterprise, Smith Barney Aggressive Growth and Smith Barney Mid Cap Portfolios.
Shares of the Fund are offered only to insurance company separate accounts that
fund certain variable annuity and variable life insurance contracts. The
financial statements and financial highlights for the other portfolios are
presented in separate shareholder reports.
The significant accounting policies consistently followed by the Portfolios are:
(a) security transactions are accounted for on trade date; (b) the Smith Barney
Money Market Portfolio uses the amortized cost method for valuing all of its
portfolios securities; the MFS Total Return and Travelers Managed Income
Portfolios use the amortized cost method for valuing securities with maturities
less than 60 days, accordingly, the cost of securities plus accreted discount or
minus amortized premium, approximates value; (c) securities traded on national
securities markets are valued at the closing prices on such markets; securities
for which no sales price was reported and U.S. government agencies and
obligations are valued at the mean between the bid and ask prices; (d) dividend
income is recorded on the ex-dividend date; foreign dividends are recorded on
the ex-dividend date or as soon as practical after the Portfolio determines the
existence of a dividend declaration after exercising reasonable due diligence;
(e) gains or losses on the sale of securities are calculated by using the
specific identification method; (f) interest income, adjusted for amortization
of premium and accretion of discount, is recorded on an accrual basis; (g)
dividends and distributions to shareholders are recorded on the ex-dividend
date; (h) the accounting records of the Portfolios are maintained in U.S.
dollars. All assets and liabilities denominated in foreign currencies are
translated into U.S. dollars based on the rate of exchange of such currencies
against U.S. dollars on the date of valuation. Purchases and sales of
securities, and income and expenses are translated at the rate of exchange
quoted on the respective date that such transactions are recorded. Differences
between income or expense amounts recorded and collected or paid are adjusted
when reported by the custodian bank;
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 33
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
(i) the character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. At October 31, 1999, reclassifications were made to the
capital accounts of the MFS Total Return Portfolio and the Travelers Managed
Income Portfolio to reflect permanent book/tax differences and income and gains
available for distributions under income tax regulations. Net investment income,
net realized gains and net assets were not affected by this change; (j) the
Portfolios intend to comply with the requirements of the Internal Revenue Code
of 1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise taxes; and (k) estimates and assumptions are required
to be made regarding assets,liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Dividends
The Smith Barney Money Market Portfolio declares and records a dividend of
substantially all its net investment income on each business day. Such dividends
are paid or reinvested monthly on the payable date.
3. Management Agreement and Transactions with Affiliated Persons
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH") which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as investment manager of the Smith Barney Money Market
Portfolio ("SBMM"). Travelers Investment Adviser, Inc. ("TIA"), an affiliate of
SSBC, acts as the investment manager of the MFS Total Return ("MFSTR") and the
Travelers Managed Income ("TMI") Portfolios. SBMM pays SSBC a management fee
calculated at an annual rate of 0.50% of the average daily net assets of the
Portfolio. MFSTR and TMI pay TIA a management fee calculated at an annual rate
of 0.80% and 0.65%, respectively, of the average daily net assets of each
Portfolio. These fees are calculated daily and paid monthly.
TIA has sub-advisory agreements with Massachusetts Financial Services Company
("MFS") and Travelers Asset Management International Company LLC ("TAMIC").
Pursuant to each sub-advisory agreement, MFS and TAMIC are responsible for the
day-to-day portfolio operations and investment decisions for MFSTR and TMI,
respectively, and are compensated for such services at an annual rate of 0.375%
and 0.30%, respectively, of the average daily net assets of MFSTR and TMI. These
fees are calculated daily and paid monthly.
--------------------------------------------------------------------------------
34 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
--------------------------------------------------------------------------------
TIA has entered into a Sub-Administrative Services Agreement with SSBC. TIA pays
SSBC, as sub-administrator, a fee calculated at an annual rate of 0.10% of the
average daily net assets of MFSTR and TMI.
Citi Fiduciary Trust Company ("CFTC"), formerly known as Smith Barney Private
Trust Company, another subsidiary of Citigroup, acts as the Fund's transfer
agent and PFPC Global Fund Services ("PFPC") acts as the sub-transfer agent.
CFTC receives account fees and asset-based fees that vary according to the
account size and type of account. PFPC is responsible for shareholder
recordkeeping and financial processing for all shareholder accounts and is paid
by CFTC. For the six months ended April 30, 2000, the Portfolios paid transfer
agent fees of $7,500 to CFTC.
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, acts as the
primary broker for its portfolio agency transactions.
All officers and one Director of the Fund are employees of SSB.
4. Investments
During the six months ended April 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
MFSTR TMI
================================================================================
Purchases $274,808,868 $99,951,465
--------------------------------------------------------------------------------
Sales 287,907,412 94,929,123
================================================================================
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
MFSTR TMI
================================================================================
Gross unrealized appreciation $ 37,630,279 $ 80,265
Gross unrealized depreciation (28,878,756) (1,789,124)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 8,751,523 $(1,708,859)
================================================================================
5. Repurchase Agreements
The Portfolios purchase (and their custodian takes possession of) U.S.
government securities from banks and securities dealers subject to agreements to
resell the securities to the sellers at a future date (generally, the next
business day) at an agreed-upon higher repurchase price. The Portfolios require
continual maintenance of the market value of the collateral in amounts at least
equal to the repurchase price.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 35
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
6. Futures Contracts
MFSTR has the ability to enter into futures contracts.
Initial margin deposits made upon entering into futures contracts are recognized
as assets. Securities equal to the initial margin amount are segregated by the
custodian in the name of the broker. Additional securities are also segregated
up to the current market value of the futures contracts. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's trading. Variation
margin payments are received or made and recognized as assets due from or
liabilities due to broker, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Portfolio records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolio's basis in the contract. MFSTR enters into such
contracts to hedge a portion of its portfolio. The Portfolio bears the market
risk that arises from changes in the value of the financial instruments and
securities indices (futures contracts).
At April 30, 2000, MFSTR had no open futures contracts.
7. Lending of Portfolio Securities
The Portfolios have an agreement with their custodian whereby the custodian may
lend securities owned by the Portfolios to brokers, dealers and other financial
organizations. Fees earned by the Portfolios on securities lending are recorded
as interest income. Loans of securities by the Portfolios are collateralized by
cash, U.S. government securities, high quality money market instruments or other
securities that are maintained at all times in an amount at least equal to the
current market value of the loaned securities, plus a margin which may vary
between 2% and 5% depending on the type of securities loaned. The custodian
establishes and maintains the collateral in segregated accounts.
At April 30, 2000, the Portfolios had no securities on loan.
8. Options Contracts
Premiums paid when put or call options are purchased by the Portfolios represent
investments, which are marked-to-market daily and are included in the schedule
of investments. When a purchased option expires, the Portfolios will realize a
loss in the amount of the premium paid. When the Portfolios enter into a closing
sales transaction, the Portfolios will realize a gain or loss depending on
whether the proceeds from the closing sales transaction are
--------------------------------------------------------------------------------
36 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
greater or less than the premium paid for the option. When the Portfolios
exercise a put option, they will realize a gain or loss from the sale of the
underlying security and the proceeds from such sale will be decreased by the
premium originally paid. When the Portfolios exercise a call option, the cost of
the security which the Porfolios purchase upon exercise will be increased by the
premium originally paid.
At April 30, 2000, the Portfolios had no open purchased put or call option
contracts.
When the Porfolios write a covered call or put option, an amount equal to the
premium received by the Portfolios is recorded as a liability, the value of
which is marked-to-market daily. When a written option expires, the Portfolios
realize a gain. When the Portfolios enter into a closing purchase
transaction, the Portfolios realize a gain or loss depending upon whether the
cost of the closing transaction is greater or less than the premium originally
received without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is eliminated. When a written
call option is exercised, the cost of the security sold will be decreased by the
premium originally received. When a put option is exercised, the amount of the
premium originally received will reduce the cost of the security which the
Portfolios purchased upon exercise. When the written index options are
exercised, settlement is made in cash.
The risk associated with purchasing options is limited to the premium originally
paid. The Portfolios enter into options for hedging purposes. The risk in
writing a covered call option is that the Portfolios give up the opportunity to
participate in any increase in the price of the underlying security beyond the
exercise price. The risk in writing a put option is that the Portfolios are
exposed to the risk of a loss if the market price of the underlying security
declines.
During the six months ended April 30, 2000, the Portfolios did not write any
options.
9. Securities Traded on a To-Be-Announced Basis
The Portfolios may trade securities on a "to-be-announced" ("TBA") basis. In a
TBA transaction, the Portfolios commit to purchasing or selling securities for
which specific information is not yet known at the time of the trade,
particularly the face amount and maturity date in GNMA transactions. Securities
purchased on a TBA basis are not settled until they are delivered to the
Portfolios normally 15 to 45 days later. These transactions are subject to
market fluctuations and their current value is determined in the same manner as
for other securities.
At April 30, 2000, the Portfolios had no TBA securities.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 37
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
10. Capital Loss Carryforward
At October 31, 1999, TMI had, for Federal income tax purposes, a capital loss
carryforward of approximately $2,717,000, available to offset future capital
gains through October 31, 2007. To the extent that these carryforward losses are
used to offset capital gains, it is probable that the gains so offset will not
be distributed.
11. Capital Shares
At April 30, 2000, the Fund had six billion shares of capital stock authorized
with a par value of $0.00001 per share. Each share of a Portfolio represents an
identical interest in that Portfolio with each share of the same Portfolio and
has an equal entitlement to any dividends and distributions made by the
Portfolio.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
================================================================================
MFS Total Return Portfolio
Shares sold 1,468,530 7,783,928
Shares issued on reinvestment -- 2,600,689
Shares reacquired (2,002,693) (514,619)
--------------------------------------------------------------------------------
Net Increase (Decrease) (534,163) 9,869,998
================================================================================
Travelers Managed Income Portfolio
Shares sold 1,346,720 5,013,814
Shares issued on reinvestment -- 269,439
Shares reacquired (319,101) (386,700)
--------------------------------------------------------------------------------
Net Increase 1,027,619 4,896,553
================================================================================
SB Money Market Portfolio
Shares sold 673,463,484 1,748,940,316
Shares issued on reinvestment 7,954,408 9,720,254
Shares reacquired (666,980,402) (1,646,638,975)
--------------------------------------------------------------------------------
Net Increase 14,437,490 112,021,595
================================================================================
--------------------------------------------------------------------------------
38 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
MFS Total Return Portfolio 2000(1)(2) 1999(2) 1998 1997 1996 1995
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 16.22 $ 16.23 $ 15.31 $ 13.13 $ 11.53 $ 9.98
-------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From
Operations:
Net investment income(3) 0.28 0.52 0.32 0.38 0.33 0.45
Net realized and
unrealized gain (loss) (0.06) 0.72 1.36 2.27 1.62 1.15
-------------------------------------------------------------------------------------------------------------------------------
Total Income
From Operations 0.22 1.24 1.68 2.65 1.95 1.60
-------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.37) (0.28) (0.29) (0.27) (0.05)
Net realized gains -- (0.88) (0.48) (0.18) (0.08) --
-------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (1.25) (0.76) (0.47) (0.35) (0.05)
-------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 16.44 $ 16.22 $ 16.23 $ 15.31 $ 13.13 $ 11.53
-------------------------------------------------------------------------------------------------------------------------------
Total Return 1.36%++ 7.62% 10.94% 20.64% 17.16% 16.12%
-------------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $ 621,568 $ 621,828 $ 462,274 $ 263,585 $ 134,529 $ 49,363
-------------------------------------------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(3) 0.83%+ 0.84% 0.84% 0.86% 0.91% 0.95%
Net investment income 3.42+ 3.11 3.32 3.54 3.82 4.40
-------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 47% 97% 118% 99% 139% 104%
===============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average share
method.
(3) The Manager has waived all or part of its fees for the year ended October
31, 1995. If such fees were not waived, the per share effect on net
investment income and expense ratio would have been as follows:
Net Investment Income Expense Ratio
Per Share Decreases Without Fee Waiver
--------------------- --------------------
1995 $0.01 1.06%
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 39
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Travelers Managed
Income Portfolio 2000(1)(2) 1999(2) 1998(2) 1997(2) 1996(2) 1995
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.49 $11.65 $11.55 $11.06 $11.16 $10.04
----------------------------------------------------------------------------------------------------------------------------
Income (Loss) From
Operations:
Net investment income(3) 0.37 0.65 0.72 0.63 0.65 0.61
Net realized and
unrealized gain (loss) (0.20) (0.45) (0.06) 0.35 (0.14) 0.64
----------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.17 0.20 0.66 0.98 0.51 1.25
----------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income -- (0.29) (0.54) (0.49) (0.46) (0.13)
Net realized gains -- (0.07) (0.02) -- (0.15) --
----------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.36) (0.56) (0.49) (0.61) (0.13)
----------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $11.66 $11.49 $11.65 $11.55 $11.06 $11.16
----------------------------------------------------------------------------------------------------------------------------
Total Return 1.48%++ 1.75% 5.71% 9.19% 4.61% 12.68%
----------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $126,728 $113,041 $57,556 $31,779 $23,532 $11,279
----------------------------------------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(3) 0.72%+ 0.76% 0.84% 0.87% 0.92% 0.92%
Net investment income 6.48+ 5.57 6.11 6.48 6.19 6.13
----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 92% 411% 327% 259% 255% 170%
============================================================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) The Manager has waived all or part of its fees for the year ended
October 31, 1995. If such fees were not waived, the per share effect
on net investment income and the expense ratio would have been as follows:
Net Investment Income Expense Ratio
Per Share Decreases Without Fee Waiver
--------------------- ------------------
1995 $0.04 1.29%
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
40 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended October 31,
except where noted:
<TABLE>
<CAPTION>
Smith Barney
Money Market Portfolio 2000(1) 1999 1998 1997 1996 1995
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------
Net investment income(2) 0.027 0.046 0.050 0.049 0.049 0.052
Distributions from net
investment income (0.027) (0.046) (0.050) (0.049) (0.049) (0.052)
-----------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------
Total Return 2.70%++ 4.66% 5.11% 5.05% 5.05% 5.35%
-----------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $291,137 $276,699 $164,677 $111,168 $99,150 $37,487
-----------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses(2) 0.53%+ 0.54% 0.64% 0.65% 0.65% 0.65%
Net investment income 5.38+ 4.58 4.99 4.94 4.86 5.26
===============================================================================================
</TABLE>
(1) For the six months ended April 30, 2000 (unaudited).
(2) The Manager waived all or part of its fees for the years ended October 31,
1997, October 31, 1996 and October 31, 1995. If such fees were not waived,
the per share effect on net investment income and the expense ratios would
have been as follows:
Net Investment Income Expense Ratios
Per Share Decreases Without Fee Waivers
1997 $0.000* 0.67%
1996 0.001 0.74
1995 0.003 0.94
* Amount represents less than $0.001.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Travelers Series Fund Inc. 41
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors
Victor K. Atkins
A.E. Cohen
Robert A. Frankel
Michael Gellert
Rainer Greeven
Susan M. Heilbron
Heath B. McLendon, Chairman
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President and Treasurer
Phyllis Zahorodny
Vice President
Irving P. David
Controller
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Managers
SSB Citi Fund Management LLC
Travelers Investment Adviser, Inc.
Custodian
PFPC Trust Company
Annuity Administration
Travelers Annuity Investor Services
5 State House Square
1 Tower Square
Hartford, CT 06183
This report is submitted for the general information of the shareholders of
Travelers Series Fund Inc. -- MFS Total Return, Travelers Managed Income and
Smith Barney Money Market Portfolios. It is not authorized for distribution to
prospective investors unless accompanied or preceded by a current Prospectus for
the Portfolios, which contains information concerning the Portfolios' investment
policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Travelers Series Fund Inc.
388 Greenwich Street
New York, New York 10013
IN0804 6/00
