SMITH BARNEY SERIES FUND
                             SEMI-ANNUAL REPORT FOR
                                    SYMPHONY
                        A Tax-Deferred Variable Annuity

                                 [Paste up Art]

June 30, 1996

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SMITH BARNEY SERIES FUND
SEMI-ANNUAL REPORT FOR SYMPHONY -- A TAX-DEFERRED VARIABLE
ANNUITY
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Dear Investor:

We are pleased to provide you with the semi-annual report
for the period ended
June 30, 1996 for the Smith Barney Series Fund. In this semi-
annual report, we
briefly discuss general economic and market conditions. In
addition, more
detailed performance comparisons showing the growth of a
hypothetical $10,000
invested in each Portfolio since inception (10/16/91) can
also be found in
this report (with the exception of the Money Market
Portfolio). All total
return
figures given in this report are cumulative, which means
they exclude the
effects of sales charges. A detailed summary of performance
and current
holdings for each individual Portfolio can be found in the
appropriate
sections that
follow in the semi-annual report.

MARKET AND ECONOMIC OVERVIEW

The first six months of 1996 were mixed for financial
assets. The U.S. stock
market continued its advance primarily during the first
quarter of the year,
fueled by very positive fundamentals, such as moderate
interest rates,
improving corporate earnings and a favorably priced U.S.
dollar. The
combination of
these factors, as well as the explosive growth in 401(k)
plans and other
defined
contribution plans, which to a certain degree, feature
equity funds as their
prime investment vehicle, attracted a significant flow of
money into the U.S.
equity market. During the first half of 1996, the Standard
and Poor's 500
Index  (S&P 500), a capitalization weighted-index of 500
widely held common
stocks,
gained 10.09%.

The sustained strength in the stock market and the
excitement surrounding new
technological advances, particularly in the communications
industries, caused
speculation to rise in the marketplace, which caused the
stock market, in
certain areas, to become overvalued. At the same time, the
fear of higher
interest rates associated with concerns over a re-emergence
of inflation,
caused the stock market's advance to slow down. In recent
months we have seen
a
correction in the market, and a significant amount of
unrealistic speculation
has disappeared, as many investors began to realize that the
stock market's
upward momentum was not endless. In our view, this
correction has been healthy
for the stock market. We believe the stock market may now be
on firmer
footing.

In contrast to the U.S. stock market, the U.S. bond market
has performed
poorly over the past six months. Between the months of
February and June, a
host of
economic data released by the U.S. government seems to
indicate that the U.S.
economy is growing at a greater rate than previously
expected. The strongest
evidence of growth in the U.S. economy to date is reflected
in the significant
increase in the number of new jobs created, a decline in the
unemployment rate
to its lowest level since 1990, and a rise in consumer
spending, which posted
annualized growth rates of more than 3% in the first two
quarters of 1996.

The strength in the U.S. economy in turn has heightened
investor concerns over
the possible re-emergence of inflation, which subsequently
has had a negative
impact on the bond market. For example, the yield on the
benchmark 30-year
Treasury bond rose 1%, from 6% at year-end 1995, to
approximately 7% at the
end of June 1996.

With the stronger-than-expected growth in the U.S. economy,
the Federal
Reserve Board shifted its monetary policy from the
accommodative stance taken
in 1995
to a neutral policy in the first half of 1996. Indeed, at
the present time,
there
is a growing consensus that the Federal Reserve Board will
ultimately raise
short-term interest rates in an effort to moderate the rate
of U.S. economic
growth.

For the remainder of 1996, we expect corporate earnings to
begin to flatten,
the U.S. dollar's climb to retreat slightly, and interest
rates to remain in
recent narrow ranges. In this environment of slower
corporate earnings, we
anticipate
the U.S. stock market will also remain in a narrow trading
range for the
foreseeable future. Although we anticipate conflicting
trends with respect to
the bond market in the near-term, our longer-term outlook is
that interest
rates will gradually decline, and bonds will resume their
historical role as
more
conservative, income-providing investments.

MONEY MARKET PORTFOLIO

The Money Market Portfolio seeks to provide maximum current
income consistent
with the preservation of capital. You should be aware that
your investment in
the Money Market Portfolio is neither insured nor guaranteed
by the

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U.S. government. Moreover, no assurance can be given that
the Portfolio will
be able to maintain a stable net asset value (NAV) of $1.00
per share.

The year ended and 1996 began with signs of an economic
slowdown. In response
to these conditions, the Federal Reserve Board (the Fed)
lowered the target
for
the fed funds rate in December and January from 5.75% to
5.25%. In addition to
lowering the fed funds target rate, the Fed lowered the
discount rate to 5%
and cited reduced potential inflationary pressures as a
reason for its easing
of
monetary policy. (The "fed funds rate" is the rate banks
charge each other for
overnight loans. The "discount rate" is the rate the Federal
Reserve charges
banks for overnight loans.)

However, since then, a number of events have caused short-
term interest rates
to  rise. Hedge fund selling, an oversupply of new issues
from U.S. Treasury
auctions, and concerns over the strength of U.S. economic
growth have
increased  market uncertainty. For example, economic data
released between
February and
the end of May has indicated that the U.S. economy is
growing more rapidly
than
previously expected, and, as a result, expectations for
second quarter GDP
growth are currently between an annual rate of 3.5% and 4%.

Despite the apparent strength in the U.S. economy, the Fed
left short-term
interest rates unchanged at its most recent Open Market
Committee Meeting.
However, it is now widely anticipated that the Fed will
raise interest rates
in the near future, especially if the unemployment rate
continues to stabilize
or
decline, consumer spending remains strong, and payroll
growth in the economy
stays at a monthly level of approximately 200,000 new jobs.

Increasing investor concerns about the possible re-emergence
of inflation has
led to an increase in yields, especially from securities
with longer-term
maturities. For example, at the beginning of the year, the 3-
month U.S.
Treasury bill was yielding 5.06% and the 1-Year U.S.
Treasury bill was
yielding 5.13%.
As of June 30, 1996, the 3-Month and 1-Year U.S. Treasury
bills were yielding
5.29% and 5.95%, respectively. Given the risk of rising
short-term interest
rates,
we have shortened the Money Market Portfolio's average life
from 50 days to 30
days since the beginning of the first quarter of the year.

INTERMEDIATE HIGH GRADE PORTFOLIO

The investment objective of the Intermediate High Grade
Portfolio is to
provide investors with as high a level of current income as
is consistent with
protection of capital. Under normal market conditions, the
Intermediate High
Grade Portfolio will invest at least 65% of its assets in
U.S. government
securities and in high-grade U.S. corporate bonds. For the
six months ended
June 30, 1996, the Intermediate High Grade Portfolio had a
total return of -
2.74%.

As of June 30, 1996, approximately 94% of the Intermediate
High Grade
Portfolio was invested in securities rated investment grade
by Standard and
Poor's
Corporation or Moody's Investors Service Inc., with 65% of
the Portfolio's
investments rated double-A or better. (Standard and Poor's
Corporation and
Moody's Investors Service Inc. are major credit reporting
and bond rating
agencies.) The following is a breakdown of the Portfolio's
composition as of
June 30, 1996:

<TABLE>
<CAPTION>
                                   SECURITY
PERCENTAGE OF PORTFOLIO
    --------------------------------------------------------
---------------
-----------------------
    <S>
<C>
    Cash
Equivalents.................................................
 ......
1.9%
    Asset-Backed
Securities................................................
3.5%
    Mortgage-Backed
Securities.............................................
6.5%
    U.S. Treasuries &
Agencies.............................................
19.9%
    Corporate
Bonds.......................................................
 .
64.6%
    Foreign Government
Bonds...............................................
3.6%
</TABLE>

During the first half of 1996, bond yields moved
significantly higher, rising
above 7%, and a large number of speculators left the bond
market. As the U.S.
economy showed signs of strength during the first quarter,
we shifted to a
more conservative posture. The Intermediate High Grade
Portfolio's maturity
structure has shortened slightly, from about 9 years to
approximately 8 years,
to
provide added price protection. In addition, we added to the
Portfolio's
positions in
mortgage-backed securities and AAA-rated asset-backed
securities to maintain a
competitive stream of income.

We believe that 7% yields from longer-term bonds will
ultimately prove to be
good value, and that the Federal Reserve will remain
vigilant in its fight
against inflation. At this time, we are waiting for a
possible move by the
Federal Reserve to raise

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short-term interest rates and for U.S. economic activity to
moderate. With
respect to our corporate bond holdings, we are currently
seeking opportunities
in high-quality issues that also offer higher yield
potentials.

DIVERSIFIED STRATEGIC INCOME PORTFOLIO

The Diversified Strategic Income Portfolio seeks to provide
investors with
high current income by investing in a combination of U.S.
government and
mortgage
related securities, foreign government securities, and
corporate securities
rated below investment grade. The Portfolio's management
team allocates assets
based on a current analysis of economic and market
conditions. The team takes
into account the relative risks and income opportunities
within each of the
fixed income sectors that the Portfolio invests in. For the
six months ended
June 30, 1996, the Diversified Strategic Income Portfolio
had a total return
of  3.10%, outperforming the Lehman Brothers Aggregate Bond
Index, return of -
1.21%  for the same period. (The Lehman Brothers Aggregate
Bond Index is an
unmanaged
index composed of intermediate government bonds, corporate
bonds and
mortgage-backed securities.)

The first six months of the year saw increased volatility in
the bond markets
worldwide. Stronger-than-expected U.S. economic growth
sparked concerns about
the possible re-emergence of inflation, and has led to a
decline in U.S. bond
prices (and a rise in yields). Treasury bonds were the most
negatively
impacted, while high-yield bonds, which are less sensitive
to interest rate
fluctuations
than government bonds, have managed to post positive total
returns so far this
year. Within the U.S. government and mortgage-backed
securities sectors, we
reduced the Portfolio's weighting in mortgage-backed
securities and increased
its positions in longer-maturity Treasury strips (i.e.,
Treasury bonds that do
not make coupon or interest payments), as interest rates
rose. Within the high
yield sector, we have maintained a strong emphasis on the
upper-and middle-
rated  issues, which in our opinion, have excellent
appreciation potential.
The
foreign government bond markets followed the U.S. in posting
price declines.
However,
the rise in bond yields in Europe has not been as severe as
it has been in the
U.S. Moreover, the peripheral European markets, such as
Spain, Italy and
Sweden have outperformed their core European counterparts,
such as Germany and
Great
Britain, posting solid year-to-date gains.

Given the increased volatility in the bond markets recently,
we have
maintained a slightly more conservative posture by
increasing our cash
position,
upgrading he credit quality of our high-yield bonds, and
increasing our
weighting in
foreign government bonds. The main focus of the Portfolio
continues to be on
income generation and capital preservation. In our view, the
Portfolio's
modestly higher cash reserves will not only partially buffer
against any
additional market turbulence, but will also allow us to take
greater advantage
of new investment opportunities as they emerge. As of the
end of June 1996,
the Diversified Strategic Income Portfolio had 26.3% of its
assets in U.S.
Treasuries and mortgage-backed securities, 45.0% in high
yield bonds, 24.2% in
foreign government bonds and a cash position of 4.5%.

EQUITY INCOME PORTFOLIO

The Equity Income Portfolio seeks to provide current income
and as a secondary
goal, capital appreciation, by investing primarily in the
utility industry. As
of June 30, 1996, approximately 78% of the Equity Income
Portfolio's assets
were invested in common stocks (60% in electric utilities,
10% in
telecommunications
companies, 8% in natural gas companies, and 1% in oil and
gas drilling), 18%
was invested in long-term investment grade bonds and 3% was
invested in cash.
For
the six months ended June 30, 1996, the Equity Income
Portfolio had a total
return of 1.05%.

The first quarter of 1996 was difficult for many utility
stocks. The
combination of rising interest rates and concerns about
industry deregulation
led to an
underperformance of the electric utility sector relative to
the overall stock
market. The electric utility industry continues to evolve
into a more
competitive environment, where consumers will have a greater
choice of energy
suppliers. Many management teams of utility companies are
closely monitoring
these industry-wide changes and determining the best
strategy to deploy their
corporate assets. One strategy could include a corporate
realignment or the
breaking up a company into separate business units involved
in both generation
and transmission. In addition, merger activity in the
industry should help to
improve its competitiveness and lower costs. We believe the
lines separating
the electric utility and natural gas industries will fade as
companies begin
to
focus on how to best serve their customers. With these
changes occurring in
the utility industry, the investment risk profile is certain
to change, and
some
companies will emerge as clear winners, while others will
face increasing
competitive challenges.

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During most of the second quarter of 1996, electric
utilities traded in a
narrow range as investors avoided this area of the market
and focused on the
more
volatile technology and cyclical sectors. However, at the
end of the quarter,
electric utility stocks rallied, as the bond market
declined. In our view,
electric utility stocks at current levels represent
attractive values when
compared to the broader equity markets. For example, the
current yield on the
Standard and Poor's Utility Index, a market value-weighted
index of 40 public
utility stocks, was close to three times that of the
Standard and Poor's 500
Index. This has occurred only three prior times during the
last twenty years
and  historically has generally proven to be an excellent
buying opportunity
for
long-term investors.

We continue to focus on a combination of long-term growth
and current income.
In the first half of the year, we increased our weighting in
growth-oriented
electric utilities that have lower than average current
yields, but clearly
defined growth prospects. We feel these companies will
continue to be priced
at premium valuation levels and should provide the best
total return
potential.
New  holdings in the Portfolio include American Electric
Power, Cinergy
Corporation, Sierra Pacific Resources and Southern Company.
During the period
covered by
this report, weightings of the telecommunications and
natural gas sectors
remained
stable.

In our opinion, many investors should consider utilities as
part of a
well-balanced portfolio. We continue to expect competitive
total returns from
the electric utility sector, with less volatility than the
overall stock
market.

EQUITY INDEX PORTFOLIO

The Equity Index Portfolio's objective is to provide
investors with results
that, before the deduction of operating expenses, match the
total returns of
the S&P 500. The Portfolio employs a passive investment
strategy designed to
replicate the composition of the S&P 500. For the period
covered by this
report, the Equity Index Portfolio had a total return of
9.56%.

Better-than-expected corporate earnings gains and
unprecedented inflows into
equity mutual funds helped stock prices to advance during
the first six months
of 1996. For the six-month period ending June 30, 1996, the
S&P 500 recorded a
total return of 10.09%. While more than half of all
companies announced
positive earnings surprises for the first quarter, the 6%
average gain in
operating
earnings was the most sluggish year-over-year rate of
earnings growth in
recent years. Record purchases of mutual funds by individual
investors
provided fund
managers with the cash necessary to absorb an equally
impressive volume of
initial public offerings (IPOs), creating the impression
that speculative
forces were building in the equity market.

As signs of the U.S. economy's strength emerged early in the
year, investor
focus shifted away from stable growth stocks and towards
consumer cyclical
stocks, particularly those in the department store, airline
and auto groups.
In  the energy sector, the drilling equipment and oil field
service stocks
rose on
strong earnings gains and expectations for increased capital
spending by major
global energy companies. Technology stocks rebounded
somewhat after their late
1995 decline, but weaker earnings momentum continued to
dampen stock prices in
most technology-related groups.

Early in the second quarter, however, equity investors
reversed course and
began to focus on more defensive, growth-oriented sectors on
the expectation
that
higher interest rates would translate into slower economic
growth by the end
of  the year. In the consumer staples sector, beverage
stocks performed well
in
response to solid revenue gains. In the consumer sector,
improving sales
fueled a rally in the retail and apparel groups. Energy
exploration, pipeline
and
distribution stocks benefited from strong natural gas
pricing. However, basic
material stocks continued to weaken on declining prices for
many industrial
commodities and concern over the possibility of an economic
slowdown. Within
the technology sector, performance was mixed. While most of
the stocks in the
semiconductor group continued to trade lower, the networking
and software
groups posted strong performance, reflecting continued
demand from corporate
customers.

GROWTH AND INCOME PORTFOLIO

Although most obvious in the stock market gyrations in the
first part of July,
volatility has been increasing throughout the year. In our
view, there are two
main reasons for this increased stock market volatility.

The first is the simpler of the two: a reversion to the
mean. Stock market
volatility over the past few years has been low relative to
history. The last
six months, then, could simply be a return to "normal." The
second revolves
around a divided view of what is going on in the economy. On
the one hand, the
bond market has been weak due to concerns that the economy

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is too strong. Bonds prices fell following reports of low
unemployment and
significant wage gains. On the other hand, stock market
investors have been
fretting about the pre-announcement of disappointing
earnings numbers. So
stock investors are worrying that the economy is too weak.
The result of these
opposing views has significantly added to market volatility.

Within the stock market, technology and retail stocks
outperformed during the
first half of the year. The Growth and Income Portfolio has
a somewhat larger
position in technology stocks than the S&P 500 Index. This
heavy weighting in
technology boosted the Portfolio's performance. The
Portfolio was
underweighted in retail stocks, a disadvantage during this
period. The six-
month total
return for the period ended June 30, 1996, was 9.76%.

There has been no change in the strategy within the Growth
and Income
Portfolio. We are still buyers of quality or "blue chip"
companies with a
history of
rising dividends. We believe that our focus on increasing
dividends is one-way
to
identify successful companies. Besides dividend increases,
we also look for
companies with strong balance sheets, excellent management
teams and promising
product lines.

During the last six months, we sold some of our holdings,
and made some new
additions to the Portfolio. None of these transactions
significantly changed
our sector weightings. Instead, the transactions were in
response to
company-specific events, and the desire to diversify within
sectors.

Two of the purchases and one of the sales were of financial
stocks. The
purchases were Beneficial Corporation, a major consumer
finance company, and
Mercury General, an auto insurer primarily serving customers
in California.
Besides attractive valuations and growth prospects, both
companies further
diversify the Portfolio's financial holdings away from its
concentration in
banks. We sold Firstar, a bank holding company based in
Wisconsin. An
important reason was the previously stated desire for a more
diversified
financial
sector within the Portfolio.

The third purchase was Harris Corporation, a diversified
manufacturer of
electronics and office products. We believe Harris has good
prospects for
increasing revenues. Finally, the other two sales were Bell
Atlantic and
Jostens ncorporated. We sold Bell Atlantic due to concerns
about the company's
entrance into businesses that are competitive with
established cable companies
and sold
Jostens after a series of disappointing earnings reports.

APPRECIATION PORTFOLIO

We believe that the sentiments expressed in our year-end
letter are still
appropriate. We suggested that a variety of factors --
overspeculation,
valuation and dividend yield considerations and an
unsustainably giddy bond
market -- have left the U.S. stock market more vulnerable to
negative rather
than positive surprises.

The Appreciation Portfolio, which seeks to provide investors
with long-term
capital appreciation by investing in growth-oriented stocks,
had a total
return of 8.48% for the period covered by this report. On a
relative basis,
the
Portfolio trailed the S&P 500 as we were penalized by our
deliberate build-up
of  cash reserves. This was an attempt, albeit premature, to
provide a cushion
and
buying reserve in a market which we believe had taken on
some very speculative
overtones. However, rather than declining as a whole, the
stock market
experienced a series of intensely rapid rotations from
sector to sector. In
our opinion, the proliferation of mutual funds engaged in a
short-term
performance
derby has led to a level of volatility more akin to
commodities than equity
investments. The Portfolio's investment strategy has
historically been to buy
and hold superior companies. In short, we prefer to think of
ourselves as
marathoners in a stock market which, during the first half
of 1996, was more
conducive to sprinters.

In this period where attractive values are hard to find, we
believe that it is
important to stick with a core of the best companies in the
world. The
Portfolio's investment strategy is to select companies with
dominant market
positions, global franchises, seasoned and respected
management teams and
excellent balance sheets. Because of their steadiness, these
types of
companies can be comforting during periods of market
excesses, and their long-
term,
consistent growth in earnings have, in the past, ultimately
translated into
higher dividend and stock prices. Around this core of
holdings, we continue to
look for special situations such as restructuring candidates
or undervalued
cyclicals.

Since the beginning of the year, the Appreciation
Portfolio's top holdings
have changed slightly. Because the Portfolio owned both
Chase Manhattan Bank
and
Chemical Bank prior to their merger, the new Chase Manhattan
Bank is now one
of  the Portfolio's key positions. We anticipate that this
merger will create
considerable cost savings, synergies and leadership

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positions in their key businesses. Moreover, we expect the
return of excess
capital to investors through share repurchase plans and
dividend increases to
be  positive. Another new addition to the Portfolio's top
holdings is
Allstate, a
leading provider of auto and home insurance. The company is
moving
aggressively to reduce exposure to "single event"
catastrophes and has
announced plans to
sell non-core assets and return excess capital to
shareholders. Lastly, during
the period covered by this report, pharmaceutical giants
Merck and Johnson &
Johnson have become two of the Portfolio's top holdings
either through
appreciation or minor additions to existing positions. Other
solid performers
for the Portfolio over the last six months include Eastman
Kodak and Xerox, as
well as American Home Products, which continues to benefit
from merger
savings. Energy stocks remain on our buy list as any
surprises in oil prices
are
likely,  in our opinion, to be on the upside. On the
disappointing front, the
Portfolio's significant investment in AT&T has hurt the
Portfolio's
performance recently,
as  competitive pressures in the long distance market have
worried many
investors.
However, we continue to believe AT&T's ongoing
restructuring, as well as its
solid brand identity and financial clout, make it as good a
value as can be
found in today's environment.

In our view, the risks in the stock market have increased
during the last six
months. In fact, stock market volatility has risen markedly
in the last
several weeks. The generous gains enjoyed by many investors
over the last
eighteen
months has caused speculation to rise. Based on almost all
traditional market
measurements, the valuation of stocks are at historical
highs. Interest rates,
which provided a floor under equities throughout 1995 as
they were falling,
now  threaten to keep a ceiling on the appreciation
potential of many stocks.
Fortunately, the U.S. economy continues to exhibit solid
growth and should
stay  strong enough fulfill most corporate profit
expectations.

We believe the Appreciation Portfolio is positioned
appropriately for current
market conditions. In our view, the best protection for
investors against
market volatility is to invest in great growth companies and
to own them for
the long
term.

EMERGING GROWTH PORTFOLIO

The Emerging Growth Portfolio seeks capital appreciation by
investing at least
65% of its total assets in the common stocks of small- and
medium-sized
foreign  and domestic companies. In line with its objective,
the Portfolio
seeks
companies it believes have the potential to become major
enterprises. For the
six months ended June 30, 1996, the Emerging Growth
Portfolio had a total
return of 17.81%, rising with a market that continued to
rally in response to
good
earnings despite rising interest rates. The Portfolio
outperformed all major
comparable indices including the NASDAQ Composite, an index
that represents
domestic over-the-counter stocks, the S&P Midcap Index, a
market-weighted
index  of 400 widely held common stocks, and the Russell
2000, an index which
represents companies with small to mid-sized market
capitalization, which
gained 12.63%, 8.34% and 10.36%, respectively, during the
first half of 1996.
In many
cases, investors are looking for companies that can maintain
solid growth even
as the economy slows. We believe the Emerging Growth
Portfolio, with its
emphasis on small and mid-capitalization growth stocks, is
well-positioned
with holdings in these types of companies. Energy and
consumer-oriented
sectors
have been the best performers while the cyclical, interest-
sensitive and
health
care groups have been the laggards. However, the best
performing stocks have
come
from many different sectors, and it is now generally a stock
pickers' market
rather than a sector-betting market.

The investment style employed by the Emerging Growth
Portfolio is a "bottom-
up" approach that focuses on stock selection rather than
"market timing" or
"sector rotation." Risk is controlled by maintaining a
broadly diversified
portfolio
and not making any large bets on one sector or one
particular stock. The
Portfolio
usually remains fully invested and its objective is to
outperform the market
by selecting the best stocks in each sector. This investment
style is designed
to
deliver consistent results over the long term.

Stocks are usually selected on the company's potential to
deliver upside
earnings surprises. To find such companies, we look for
rising earnings
estimates and improving valuations. Investments are made in
the highest growth
companies in each sector that meet our strict buying
criteria. In general,
these will be smaller companies with revenues of less than
$2 billion.

Stocks that performed well over the past six months in the
Emerging Growth
Portfolio include: Chesapeake Energy, an oil and gas
exploration company;
Cascade Communications, DSP Communications and Pairgain
Technologies, all of
which specialize in telecommunications equipment; and
Minimed, a medical
specialties company.

We continue to remain optimistic about the long-term
prospects for
smaller-capitalization growth stocks. However, over the
short-term, we should
experience a minor correction due to the fact that these
stocks have done so
well over the last two years

                                        6

<PAGE>

SMITH BARNEY SERIES FUND
SEMI-ANNUAL REPORT FOR SYMPHONY -- A TAX-DEFERRED VARIABLE
ANNUITY
------------------------------------------------------------
------------------
--

without any meaningful pause. We have already seen some
evidence of this
correction in June and the beginning of July. In our view,
any pullback in the
market should be viewed as a buying opportunity. We believe
that many small
stocks generally are selling at reasonable valuation levels
when compared to
many larger company stocks.

TOTAL RETURN PORTFOLIO

The Total Return Portfolio seeks to provide investors with
total return,
consisting of long-term capital appreciation and income. The
Total Return
Portfolio invests primarily in a diversified portfolio of
dividend-paying
common stocks. As of June 30, 1996, the Total Return
Portfolio had a total
return of
12.00%. The Portfolio's performance compares favorably to
the total return of
10.09% from the S&P 500 over the same time period.

The Portfolio has about 17% of its assets in Real Estate
Investment Trusts
(REITs), which, in our view, offer good value and should
provide substantial
upside potential with limited risk. In addition to the
strong returns from its
REIT holdings, the Portfolio also benefited from its
holdings in the energy
industry which currently make up about 14% total assets, as
worldwide demand
and adverse winter weather conditions in many areas of the
world caused prices
for
oil and gas to rise, especially in the United States.
Moreover, strong cash
flows at many international oil companies and improved
technology have led to
increased spending on energy exploration worldwide. We took
advantage of this
year's sell-off in the bond market to invest 10% of the
Portfolio in
high-quality holdings in the interest-sensitive area such as
financial
services companies.

Our market outlook for the near-term is cautious, since we
expect volatility
will increase dramatically as investors continue to shift in
and out of
industry  groups in a continuous quest for "value." Although
U.S. economic
growth in our
view should moderate over the next six months, upward
pressure on bond yields
should continue to linger and may keep the bond market in a
volatile trading
range over the near term. With nearly 55% of the Portfolio's
assets in energy,
REITs, gold and cash, we expect that our future returns
should be
substantially less volatile than those of market averages.

Our substantial cash position at this time as well as the
tax-advantaged
nature of our annuity structure has given us considerable
flexibility to take
advantage of buying opportunities as they emerge over the
near term. The
following is a
sector breakdown of the Portfolio's holdings as of June 30,
1996:

<TABLE>
<CAPTION>
                                    SECTOR
PERCENTAGE OF PORTFOLIO
    --------------------------------------------------------
---------------
-----------------------
    <S>
<C>

REITs.......................................................
 ...........
16.57%
    Consumer
Cyclicals...................................................
 ..
15.85%

Energy......................................................
 ...........
13.90%
    Interest
Sensitive...................................................
 ..
11.67%
    Basic
Materials...................................................
 .....
8.46%

Healthcare..................................................
 ...........
6.62%

Technology..................................................
 ...........
5.24%

Utilities...................................................
 ...........
2.78%

Transportation..............................................
 ...........
2.76%

Cash........................................................
 ...........
16.15%
</TABLE>

INTERNATIONAL EQUITY PORTFOLIO

The International Equity Portfolio seeks total return on its
assets from
growth of capital and income. For the six months ended June
30, 1996, the
International Equity Portfolio had a total return of 14.83%.
This performance
compares
favorably to the 4.67% total return posted by the Morgan
Stanley EAFE Index
for  the same period. (The Morgan Stanley EAFE Index is a
composite index
consisting of equity total returns for the countries of
Europe, Australia and
the Far
East.)

The recent volatility in the U.S. capital markets did not go
unnoticed by
investors in the international markets. Many international
markets have had
their own internal issues with which to contend. For
instance, the
Presidential elections in the former Soviet Union and the
aftermath of the
Indian elections
in May, were important factors not only in those domestic
markets, but also
had potentially large implications for neighboring markets
and economies.

                                        7

<PAGE>

SMITH BARNEY SERIES FUND
SEMI-ANNUAL REPORT FOR SYMPHONY -- A TAX-DEFERRED VARIABLE
ANNUITY
------------------------------------------------------------
------------------
--

At the end of the second quarter, the Latin American markets
posted a gain of
nearly 11%, followed by the Pacific and European markets
where returns were
somewhat reduced by the recovery of the U.S. dollar versus
the major
currencies. The emerging markets (including Latin America)
experienced a major
upturn
gaining nearly 6% during the second quarter.

We continue to find good value in many international growth
stocks relative to
U.S. equity valuations. It is not unusual to find premium
growth companies in
foreign markets, selling at price-earnings multiples equal
to or below their
growth rates, a relatively difficult task in the U.S. (The
p/e multiple or
ratio is the price of a stock divided by its earnings per
share. This figure
generally gives investors an idea of how much they are
paying for a particular
company's
earning power.) Moreover, given the higher growth rates of
many countries, at
a time when sustainable U.S. economic growth is being
targeted in the 2% - 3%
range, the underlying conditions for outperformance, in our
opinion, remain in
place.

The International Equity Portfolio continues to focus on
premium growth
companies in a broadly diversified portfolio. Presently, we
are holding
approximately 50 stocks in 19 countries. Our geographic
allocation is made up
of  Europe (60%), Far East (30%), Latin America (6%), and
Other (4%).

The Portfolio's heavy weighting in Europe is not driven by
any "top-down" view
on broad economic trends, though we believe the evidence
supports continued
monetary easing with potential for accelerated economic
growth heading into
1997. Instead, we believe that the necessary restructuring
that European
industries are now undertaking to become more competitive on
a global basis
has opened up attractive new opportunities for many
companies in a wide
variety of
industries. Companies such as Novartis, which specializes in
pharmaceuticals;
Wolters Kluwer and Independent News, two media companies;
and Serco, an
outsourcing company, are just a few examples. Moreover,
Europe's historically
low profit margins are on the rise, and we envision
increasing earnings
potential as a sustaining positive influence in the markets.

The Pacific Rim markets have taken a pause in recent weeks,
while the Japanese
market has staged a recent rally on economic data which
appears to indicate
unequivocally that the Japanese economy has pulled out of
its multi-year
recession. Government policy to cool perceived economic
excesses has led to
higher interest rates and other market-dampening events in
countries such as
Singapore, India, Thailand, China and Malaysia. We believe
that the high
indigenous growth rates of the Pacific economies will
continue to attract
growth capital and that the potential for declining interest
rates over the
balance
of  1996 may serve as a catalyst for upward momentum in
these markets. In
summary,
the international equity markets have delivered handsome
total returns during
the first half of 1996. In our opinion, with the increased
volatility in the
U.S. stock and bond markets, the International Equity
Portfolio offers
investors attractive return potential and broader portfolio
diversification.

In closing, we would like to thank you for your investment
in the Smith Barney
Series Fund. We look forward to serving your financial needs
in the years
ahead.
Sincerely,

/s/ HEATH B. MCLENDON

Heath B. McLendon
Chairman and Chief Executive Officer
July 22, 1996

                                        8

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- INTERMEDIATE HIGH GRADE PORTFOLIO
AS OF 6/30/96

<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+            (2.74)%
    Year Ended 6/30/96                    3.85%
    10/16/91* through 6/30/96             5.61%
</TABLE>
    + Total return is not annualized, as it may
      not be representative of the total return for
      the year.
    * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical $10,000
investment in Intermediate High Grade Portfolio on October
16, 1991
(commencement of operations) through June 30, 1996 with that
of a similar
investment in the Lehman Brothers Aggregate Bond Index.
Index information is
available at month-end only; therefore, the closest month-
end to inception
date of the Portfolio has been used. Figures for the Lehman
Brothers Aggregate
Bond
Index, an unmanaged index, are composed of the Lehman
Intermediate Government/
Corporate Bond Index and the Mortgage-Backed Securities
Index and includes
treasury issues, agency issues, corporate bond issues and
mortgage-backed
securities.

<TABLE>
<CAPTION>
                                                 LEHMAN
                               INTERMEDIATE     BROTHERS
     MEASUREMENT PERIOD         HIGH GRADE     AGGREGATE
   (FISCAL YEAR COVERED)        PORTFOLIO      BOND INDEX
<S>                            <C>            <C>
10/16/91                           10000.00       10000.00
12/91                              10240.00       10507.00
12/92                              10781.00       11285.00
12/93                              11643.00       12386.00
12/94                              11287.00       12024.00
12/95                              13292.00       14246.00
6/30/96                            12929.00       14073.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.

------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- DIVERSIFIED STRATEGIC INCOME
PORTFOLIO AS OF
6/30/96

<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+               3.10%
    Year Ended 6/30/96                     10.55%
    10/16/91* through 6/30/96               6.54%
</TABLE>
    + Total return is not annualized, as it may
      not be representative of the total return for
      the year.
    * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical $10,000
investment in Diversified Strategic Income Portfolio on
October 16, 1991
(commencement of operations) through June 30, 1996 with that
of a similar
investment in the Lehman Brothers Aggregate Bond Index.
Index information is
available at month-end only; therefore, the closest month-
end to inception
date of the Portfolio has been used. Figures for the Lehman
Brothers Aggregate
Bond
Index, an unmanaged index, are composed of the Lehman
Intermediate
Government/Corporate Bond Index and the Mortgage-Backed
Securities Index and
includes treasury issues, agency issues, corporate bond
issues and
mortgage-backed securities.



<TABLE>
<CAPTION>
                               DIVERSIFIED       LEHMAN
                                STRATEGIC       BROTHERS
     MEASUREMENT PERIOD           INCOME       AGGREGATE
   (FISCAL YEAR COVERED)        PORTFOLIO      BOND INDEX
<S>                            <C>            <C>
10/16/91                           10000.00       10000.00
12/91                              10140.00       10507.00
12/92                              10284.00       11285.00
12/93                              11576.00       12386.00
12/94                              11251.00       12024.00
12/95                              13071.00       14246.00
6/30/96                            13476.00       14073.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.


<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- EQUITY INCOME PORTFOLIO AS OF
6/30/96

<TABLE>
<CAPTION>
----------------------------------------------
          AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
   <S>                                  <C>
   Six Months Ended 6/30/96+             1.05%
   Year Ended 6/30/96                   17.45%
   10/16/91* through 6/30/96             9.20%
</TABLE>
   + Total return is not annualized, as it
     may not be representative of the total
     return for the year.
   * Commencement of operations
----------------------------------------------

The chart to the right compares the growth in value of a
hypothetical $10,000
investment in Equity Income Portfolio on October 16, 1991
(commencement of
operations) through June 30, 1996 with that of a similar
investment in the
Variable Annuity Lipper Equity Income Funds Peer Group
Average and Standard &
Poor's 500 Index. Index information is available at month-
end only; therefore,
the closest month-end to inception date of the Portfolio has
been used. The
Standard & Poor's 500 Index is an unmanaged index composed
of 500 widely held
common stocks listed on the New York Stock Exchange,
American Stock Exchange
and over-the-counter market.

The Variable Annuity Lipper Equity Income Funds Peer Group
Average is
composed of 41 equity income funds which underlie variable
annuities.


<TABLE>
<CAPTION>
                                                VARIABLE
                                                ANNUITY
                                                 LIPPER
                                                 EQUITY
                                  EQUITY      INCOME FUNDS
STANDARD &
     MEASUREMENT PERIOD           INCOME       PEER GROUP
POOR'S 500
   (FISCAL YEAR COVERED)        PORTFOLIO       AVERAGE
INDEX
<S>                            <C>            <C>
<C>
10/16/91                           10000.00       10000.00
10000.00
12/91                              10200.00       10559.00
10838.00
12/92                              11397.00       11782.00
11668.00
12/93                              12583.00       13758.00
12844.00
12/94                              11308.00       14094.00
13012.00
12/95                              14979.00       16510.00
17898.00
6/30/96                            15137.00       17542.00
19703.00
</TABLE>

---------------------------------

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.

------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- GROWTH AND INCOME PORTFOLIO AS OF
6/30/96

<TABLE>
<CAPTION>
----------------------------------------------
          AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
   <S>                                  <C>
   Six Months Ended 6/30/96+             9.76%
   Year Ended 6/30/96                   24.64%
   10/16/91* through 6/30/96            11.41%
</TABLE>
   + Total return is not annualized, as it
     may not be representative of the total
     return for the year.
   * Commencement of operations
----------------------------------------------

The chart to the right compares the growth in value of a
hypothetical
$10,000 investment in Growth and Income Portfolio on October
16, 1991
(commencement of operations) through June 30, 1996 with that
of a similar
investment in the Variable Annuity Lipper Growth & Income
Funds Peer Group
Average and Standard & Poor's 500 Index. Index information
is available at
month-end only; therefore, the closest month-end to
inception date of the
Portfolio has been used. The Standard & Poor's 500 Index is
an unmanaged index
composed of 500 widely held common stocks listed on the New
York Stock
Exchange, American Stock Exchange and over-the-counter
market.

The Variable Annuity Lipper Growth & Income Funds Peer Group
Average is
composed of 40 growth and income funds which underlie
variable annuities.


<TABLE>
<CAPTION>
                                                VARIABLE
                                                ANNUITY
                                                 LIPPER
                                                GROWTH &
                                GROWTH AND    INCOME FUNDS
STANDARD &
     MEASUREMENT PERIOD           INCOME       PEER GROUP
POOR'S 500
   (FISCAL YEAR COVERED)        PORTFOLIO       AVERAGE
INDEX
<S>                            <C>            <C>
<C>
10/16/91                           10000.00       10000.00
10000.00
12/91                              10140.00       10746.00
10838.00
12/92                              10996.00       11551.00
11668.00
12/93                              11995.00       12802.00
12844.00
12/94                              11611.00       12646.00
13012.00
12/95                              15222.00       16514.00
17898.00
6/30/96                            16631.00       17988.00
19703.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.



<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- APPRECIATION PORTFOLIO AS OF
6/30/96

<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+               8.48%
    Year Ended 6/30/96                     19.25%
    10/16/91* through 6/30/96              11.19%
</TABLE>
    + Total return is not annualized, as it may
      not be representative of the total return for
      the year.
    * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical
$10,000 investment in Appreciation Portfolio on October 16,
1991 (commencement
of operations) through June 30, 1996 with that of a similar
investment in the
Standard & Poor's 500 Index. Index information is available
at month-end only;
therefore, the closest month-end to inception date of the
Portfolio has been
used. The Standard & Poor's 500 Index is an unmanaged index
composed of 500
widely held common stocks listed on the New York Stock
Exchange, American
Stock Exchange and over-the-counter market.

<TABLE>
<CAPTION>
                                               STANDARD &
     MEASUREMENT PERIOD        APPRECIATION    POOR'S 500
   (FISCAL YEAR COVERED)        PORTFOLIO        INDEX
<S>                            <C>            <C>
10/16/91                           10000.00       10000.00
12/91                              10490.00       10838.00
12/92                              11133.00       11668.00
12/93                              11926.00       12844.00
12/94                              11792.00       13012.00
12/95                              15193.00       17898.00
6/30/96                            15193.00       19703.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.

------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- EMERGING GROWTH PORTFOLIO AS OF
6/30/96


<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+              17.81%
    Year Ended 6/30/96                     39.14%
    12/3/93* through 6/30/96               20.64%
</TABLE>
    + Total return is not annualized, as it may
      not be representative of the total return for
      the year.
    * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical
$10,000 investment in Emerging Growth Portfolio on December
3, 1993
(commencement of operations) through June 30, 1996 with that
of a similar
investment in the NASDAQ Composite Index. Index information
is available at
month-end only; therefore, the closest month-end to
inception date of the
Portfolio has been used. The NASDAQ Composite Index is a
market capitalization
price-only index that tracks the performance of domestic
common stocks traded
on the regular NASDAQ market as well as foreign common
stocks and ADRs traded
on the National Market System.

<TABLE>
<CAPTION>
                                 EMERGING        NASDAQ
     MEASUREMENT PERIOD           GROWTH       COMPOSITE
   (FISCAL YEAR COVERED)        PORTFOLIO        INDEX
<S>                            <C>            <C>
12/3/93                            10000.00       10000.00
12/93                              10410.00       10297.00
12/94                               9631.00        9968.00
12/95                              13762.00       13947.00
6/30/96                            16212.00       15709.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
moreor less than original cost.

Average annual total returns are historical in nature and
measure net
investment  income and capital gain or loss from portfolio
investments
assuming
reinvestment
of dividends. The returns do not reflect expenses associated
with the
subaccount  such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.


<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- TOTAL RETURN PORTFOLIO AS OF
6/30/96

<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+              12.00%
    Year Ended 6/30/96                     19.74%
    12/3/93* through 6/30/96               18.53%
</TABLE>
  + Total return is not annualized, as it may not
    be representative of the total return for the year.
  * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical
$10,000 investment in Total Return Portfolio on December 3,
1993 (commencement
of operations) through June 30, 1996 with that of a similar
investment in the
Standard & Poor's 500 Index. Index information is available
at month-end only;
therefore, the closest month-end to inception date of the
Portfolio has been
used. The Standard & Poor's 500 Index is an unmanaged index
composed of 500
widely held common stocks listed on the New York Stock
Exchange,
American Stock Exchange, and over-the-counter market.


<TABLE>
<CAPTION>
                                               STANDARD &
     MEASUREMENT PERIOD        TOTAL RETURN    POOR'S 500
   (FISCAL YEAR COVERED)        PORTFOLIO        INDEX
<S>                            <C>            <C>
12/3/93                            10000.00       10000.00
12/93                              10300.00       10121.00
12/94                              11062.00       10253.00
12/95                              13832.00       14103.00
6/30/96                            15492.00       15526.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment income and capital gain or loss from portfolio
investments assuming
reinvestment of dividends. The returns do not reflect
expenses associated with
the
subaccount such as administrative fees, account charges and
surrender charges
which, if
reflected, would reduce the performance shown.

------------------------------------------------------------
------------------
--
 PERFORMANCE COMPARISON -- INTERNATIONAL EQUITY PORTFOLIO AS
OF 6/30/96

<TABLE>
<CAPTION>
-------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
<S>                                     <C>
    Six Months Ended 6/30/96+              14.83%
    Year Ended 6/30/96                     18.02%
    12/3/93* through 6/30/96                5.60%
</TABLE>
    + Total return is not annualized, as it may
      not be representative of the total return for
      the year.
    * Commencement of operations
-------------------------------------------------

The chart to the right compares the growth in value of a
hypothetical $10,000
investment in International Equity Portfolio on December 3,
1993 (commencement
of operations) through June 30, 1996 with that of a similar
investment in the
Morgan Stanley EAFE Index. Index information is available at
month-end only;
therefore, the closest month-end to inception date of the
Portfolio has been
used. The Morgan Stanley EAFE Index is a composite index
consisting of equity
total returns for the countries of Europe, Australia, New
Zealand and
countries in the Far East, weighted based on each country's
gross domestic
product.

<TABLE>
<CAPTION>
                               INTERNATIONAL     MORGAN
     MEASUREMENT PERIOD           EQUITY      STANLEY EAFE
   (FISCAL YEAR COVERED)        PORTFOLIO        INDEX
<S>                            <C>            <C>
12/3/93                            10000.00       10000.00
12/93                              10050.00       10724.00
12/94                               9210.00       10850.00
12/95                              10020.00       12103.00
6/30/96                            11506.00       12668.00
</TABLE>

------------------------------------------------------------
------------------
--

The performance shown represents past performance and is not
a guarantee of
future results. A mutual fund's share price and investment
return will vary
with market conditions, and the principal value of shares,
when redeemed, may
be
more or less than original cost.

Average annual total returns are historical in nature and
measure net
investment
income and capital gain or loss from portfolio investments
assuming
reinvestment
of dividends. The returns do not reflect expenses associated
with the
subaccount
such as administrative fees, account charges and surrender
charges which, if
reflected, would reduce the performance shown.



<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED)
JUNE 30,
1996

                             MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>

ANNUALIZED

YIELD ON
  FACE
DATE OF
 AMOUNT                                  SECURITY
PURCHASE       VALUE
------------------------------------------------------------
------------------
----------------------------
<S>
<C>           <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 3.4%
$200,000    Student Loan Mortgage Association matures 7/1/96
            (Cost --
$200,000).................................................
5.52%      $
200,000
------------------------------------------------------------
------------------
----------------------------
COMMERCIAL PAPER -- 95.1%
 250,000    A.I. Credit matures
7/30/96........................................      5.32
248,939
 250,000    Barclays U.S. Funding Corp. matures
7/22/96........................      5.33          249,230
 250,000    Bear Stearns matures
7/2/96........................................      5.33
249,963
 250,000    Canadian Imperial Holdings Inc. matures
7/2/96.....................      5.34          249,963
 250,000    Canadian Wheat Board matures
8/9/96................................      5.41
248,546
 200,000    Chase Manhattan Bank Corp. matures
8/15/96.........................      5.35          198,680
 250,000    Citicorp matures
7/22/96...........................................      5.33
249,230
 260,000    Commerzbank U.S. Finance matures
7/9/96............................      5.33
259,694
 200,000    Credito Italiano matures
8/27/96...................................      5.42
198,322
 225,000    Den Danske Corp. matures
8/20/96...................................      5.42
223,322
 225,000    Daimler-Benz North America Corp. matures
8/20/96...................      5.46          222,108
 250,000    Ford Motor Credit matures
7/31/96..................................      5.34
248,898
 200,000    General Electric Capital Corp. matures
7/29/96.....................      5.11          199,221
 250,000    Goldman Sachs & Co. matures
8/23/96................................      5.34
248,060
 250,000    International Nederlanden Group matures
9/19/96....................      5.49          246,989
 100,000    J.P. Morgan & Co. matures
12/16/96.................................      5.61
97,452
 250,000    Merrill Lynch matures
7/15/96......................................      5.38
249,480
 200,000    Morgan Stanley matures
7/24/96.....................................      5.38
199,315
 250,000    Nestle Capital Corp. matures
7/1/96................................      5.50
250,000
 200,000    PHH Corp. matures
7/31/96..........................................      5.39
199,107
 100,000    Province of British Columbia matures
8/6/96........................      5.05           99,508
 225,000    Sheffield Receivable Corp. matures
7/18/96.........................      5.39          224,429
 200,000    Siemans Corp. matures
8/21/96......................................      5.40
198,481
 250,000    Transamerica Finance Corp. matures
8/14/96.........................      5.37          248,378
 250,000    Union Bank of Switzerland matures
7/1/96...........................      5.55          250,000
------------------------------------------------------------
------------------
----------------------------
            TOTAL COMMERCIAL PAPER (Cost --
$5,557,315)........................
5,557,315
------------------------------------------------------------
------------------
----------------------------
REPURCHASE AGREEMENT -- 1.5%
  89,000    CS First Boston, Inc., 5.294%, due 7/1/96;
Proceeds at
            maturity -- $89,039;
            (Fully collateralized by U.S. Treasury Note,
7.500% due 12/31/96;
            Market value -- $90,823) (Cost --
$89,000).........................                     89,000
------------------------------------------------------------
------------------
----------------------------
            TOTAL INVESTMENTS -- 100% (Cost --
$5,846,315*)....................                 $5,846,315
------------------------------------------------------------
------------------
----------------------------
</TABLE>

* Aggregate cost for federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       13

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                       INTERMEDIATE HIGH GRADE PORTFOLIO
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
ASSET-BACKED SECURITIES -- 3.5%
$  500,000    Carco Auto Loan Master, 7.875% due 7/15/99
(Cost --
$512,578)................   $   511,670
------------------------------------------------------------
------------------
---------------------------
MORTGAGE-BACKED SECURITIES -- 6.5%
 1,016,873    Government National Mortgage Association,
6.500% due 2/15/26
              (Cost --
$991,538)...................................................
 ........
946,638
------------------------------------------------------------
------------------
---------------------------
U.S. GOVERNMENT OBLIGATIONS -- 19.9%
   175,000    U.S. Treasury Notes, 6.375% due
1/15/99......................................       175,579
 1,070,000    U.S. Treasury Notes, 7.750% due
12/31/99.....................................     1,115,999
 1,450,000    U.S. Treasury Notes, 8.125% due
8/15/19......................................     1,627,248
------------------------------------------------------------
------------------
---------------------------
              TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost --
$2,982,710).......................     2,918,826
------------------------------------------------------------
------------------
---------------------------
FOREIGN GOVERNMENT BONDS -- 3.6%
   500,000    Hydro - Province of Quebec, 8.050% due 7/7/24
(Cost --
$535,200).............       530,000
------------------------------------------------------------
------------------
---------------------------
CORPORATE BONDS AND NOTES -- 64.6%
BANKING -- 16.7%
   700,000    ABN AMRO Bank, Sub. Debenture, 7.250% due
5/31/05............................       709,625
   500,000    Malayan Banking, N.Y., Sub. Debenture, 7.125%
due
9/15/05....................       488,125
   500,000    Norwest Corp., 6.250% due
4/15/99............................................
496,250
   700,000    Republic New York Corp., Debenture, 9.500% due
7/1/00........................       763,000
------------------------------------------------------------
------------------
---------------------------

2,457,000
------------------------------------------------------------
------------------
---------------------------
FINANCIAL SERVICES -- 22.7%
   700,000    Associates Corp. N.A., 8.180% due
2/15/05....................................       741,125
   700,000    Exxon Capital Corp., 7.875% due
8/15/97......................................       714,650
   650,000    Ford Motor Credit Co., 8.000% due
10/1/96....................................       653,692
   700,000    International Lease Finance Corp., 8.250% due
1/15/00........................       731,500
   500,000    Santander Financial Corp., 7.000% due
4/1/06.................................       484,375
------------------------------------------------------------
------------------
---------------------------

3,325,342
------------------------------------------------------------
------------------
---------------------------
HEALTHCARE -- 2.7%
   386,000    Hospital Corp., 9.000% due
3/15/16...........................................
401,923
------------------------------------------------------------
------------------
---------------------------
INSURANCE -- 9.0%
   700,000    Massachusetts Mutual Life Insurance Co.,
7.625% due
11/15/23.................       659,750
   700,000    Metropolitan Life Insurance, 6.300% due
11/1/03..............................       659,750
------------------------------------------------------------
------------------
---------------------------

1,319,500
------------------------------------------------------------
------------------
---------------------------
MACHINERY -- 3.3%
   500,000    Case Corp., 7.250% due
8/1/05................................................
491,250
------------------------------------------------------------
------------------
---------------------------
OIL SERVICES -- 6.8%
   485,000    Mobil Corp., 6.500% due
12/17/96.............................................
486,213
   500,000    Shell Oil Co., 6.950% due
12/15/98...........................................
506,875
------------------------------------------------------------
------------------
---------------------------

993,088
------------------------------------------------------------
------------------
---------------------------
TECHNOLOGY -- 3.4%
   500,000    Philips Electronics Corp., 7.200% due
6/1/26.................................       495,625
------------------------------------------------------------
------------------
---------------------------
              TOTAL CORPORATE BONDS AND NOTES (Cost --
$9,605,335).........................     9,483,728
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       14

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                       INTERMEDIATE HIGH GRADE PORTFOLIO
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
REPURCHASE AGREEMENT -- 1.9%
$  277,000    Chase Manhattan Bank, 5.330% due 7/1/96;
Proceeds at maturity --
$277,123;
              (Fully collateralized by U.S. Treasury Notes,
5.750% due
9/30/97;
              Market value -- $282,657) (Cost --
$277,000).................................   $   277,000
------------------------------------------------------------
------------------
---------------------------
              TOTAL INVESTMENTS -- 100% (Cost --
$14,904,361*).............................   $14,667,862
------------------------------------------------------------
------------------
---------------------------
</TABLE>

* Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       15

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
     FACE
    AMOUNT                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
U.S. GOVERNMENT SECTOR -- 24.1%
------------------------------------------------------------
------------------
----------------------------
$      756,858    FHLMC, 9.000% due 1/1/20 through
5/1/21...................................   $   789,259
     1,255,823    GNMA, 8.000% due 7/15/17 through
12/15/21.................................     1,267,591
    11,003,365    GNMA, 9.000% due 11/15/16 through
9/15/24.................................    10,210,550
       970,000    U.S. Treasury Notes, 6.125% due
12/31/96..................................       973,279
     1,000,000    U.S. Treasury Notes, 6.625% due
6/30/01...................................     1,006,510
------------------------------------------------------------
------------------
----------------------------
                  TOTAL U.S. GOVERNMENT SECTOR (Cost --
$14,277,990)........................    14,247,189
------------------------------------------------------------
------------------
----------------------------
HIGH YIELD SECTOR -- 45.5%
------------------------------------------------------------
------------------
----------------------------
CORPORATE BONDS AND NOTES -- 43.2%
AEROSPACE AND DEFENSE -- 1.7%
       250,000    Airplanes Pass Through Trust, 10.875% due
3/15/19.........................       260,625
       350,000    Howmet Corp., 10.000% due 12/1/03
(a).....................................       369,250
       225,000    Tracor Inc., 10.875% due
8/15/01..........................................
240,750
       150,000    UNC, Inc., 11.000% due 6/1/06
(a).........................................       152,625
------------------------------------------------------------
------------------
----------------------------

1,023,250
------------------------------------------------------------
------------------
----------------------------
AUTOMOBILE/AUTO PARTS/TRUCK MANUFACTURING -- 1.1%
       225,000    Collins & Aikman Corp., 11.500% due
4/15/06...............................       226,688
       400,000    Harvard Industries Inc., 12.000% due
7/15/04..............................       396,500
------------------------------------------------------------
------------------
----------------------------

623,188
------------------------------------------------------------
------------------
----------------------------
BROADCASTING - TV, CABLE AND RADIO -- 8.4%
       350,000    Australis Media Ltd., step bond to yield
14.000% due 5/15/03
(b)..........       208,250
       275,000    Bell Cable PLC, step bond to yield 11.875%
due
9/15/05....................       167,750
       500,000    Bell Cablemedia PLC, step bond to yield
11.950% due
7/15/04...............       352,500
       250,000    Cablevision Systems Corp., 9.875% due
2/15/13.............................       235,000
       300,000    Comcast UK Cable, step bond to yield
11.250% due
11/15/07.................       174,750
       300,000    Grupo Televisa S.A., 11.875% due 5/15/06
(a)..............................       307,500
       300,000    Lenfest Communications, 10.500% due
6/15/06
(a)...........................       301,875
       400,000    Marcus Cable Co., step bond to yield
13.500% due
8/1/04...................       285,500
       450,000    NWCG Holding Corp., zero coupon due
6/15/99...............................       331,313
                  Rogers Cablesystems Ltd.:
       325,000    10.000% due
12/1/07.....................................................
 ..       319,719
       400,000    11.000% due
12/1/15.....................................................
 ..       417,500
       250,000    Rogers Communications Inc., 10.875% due
4/15/04...........................       255,000
       200,000    SFX Broadcasting, 10.750% due 5/15/06
(a).................................       199,500
       450,000    UIH Australia/Pacific, step bond to yield
14.000% due
5/15/06.............       240,750
       600,000    UIH Inc., step bond to yield 14.000% due
11/15/99.........................       389,250
       250,000    Videotron Groupe Limited, 10.625% due
2/15/05.............................       262,500
       400,000    Videotron Holdings PLC, step bond to yield
11.000% due
8/15/05............       262,500
       250,000    Wireless One, 13.000% due
10/15/03........................................
265,625
------------------------------------------------------------
------------------
----------------------------

4,976,782
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       16

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
     FACE
    AMOUNT                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
BUILDING/CONSTRUCTION -- 0.5%
$      250,000    Greystone Homes Inc., 10.750% due
3/1/04..................................   $   250,000
        50,000    Miles Home Services Inc., 12.000% due
4/1/01..............................        37,063
------------------------------------------------------------
------------------
----------------------------

287,063
------------------------------------------------------------
------------------
----------------------------
CHEMICALS -- 1.5%
       400,000    NL Industries Inc., 11.750% due
10/15/03..................................       410,500
       175,000    Pt. Polysindo Eka Perkasa, 13.000% due
6/15/01............................       191,844
       250,000    Terra Industries Inc., 10.500% due
6/15/05................................       265,313
------------------------------------------------------------
------------------
----------------------------

867,657
------------------------------------------------------------
------------------
----------------------------
CONSUMER DURABLE GOODS/HOME FURNISHINGS -- 1.4%
       775,000    International Semi Tech Microelectronics
Inc., step bond to
yield
                    11.500% due
8/15/03.....................................................
450,469
       200,000    Remington Product Co., 11.000% due 5/15/06
(a)............................       199,250
       200,000    TAG-Heuer International, 12.000% due
12/15/05
(a).........................       204,250
------------------------------------------------------------
------------------
----------------------------

853,969
------------------------------------------------------------
------------------
----------------------------
DIVERSIFIED/CONGLOMERATE SERVICES -- 1.5%
       450,000    Interlake Corp., 12.125% due
3/1/02.......................................       452,813
       400,000    Williamhouse-Regency, 13.000% due 11/15/05
(a)............................       453,000
------------------------------------------------------------
------------------
----------------------------

905,813
------------------------------------------------------------
------------------
----------------------------
ELECTRIC UTILITIES -- 0.5%
       200,000    Calpine Corp., 10.500% due 5/15/06
(a)....................................       202,000
        62,306    Midland Funding Corp. I, 10.330% due
7/23/02..............................        64,954
------------------------------------------------------------
------------------
----------------------------

266,954
------------------------------------------------------------
------------------
----------------------------
ELECTRONICS/COMPUTERS -- 1.5%
       250,000    Graphic Controls Corp., 12.000% due
9/15/05...............................       266,250
       600,000    Unisys Corp., 12.000% due
4/15/03.........................................
611,250
------------------------------------------------------------
------------------
----------------------------

877,500
------------------------------------------------------------
------------------
----------------------------
FOOD -- 1.6%
       200,000    Smiths Food & Drug, 11.250% due
5/15/07...................................       203,000
       300,000    TLC Beatrice International Holdings,
11.500% due
10/1/05..................       304,875
       400,000    Van De Kamp Inc., 12.000% due
9/15/05.....................................       429,000
------------------------------------------------------------
------------------
----------------------------

936,875
------------------------------------------------------------
------------------
----------------------------
GROCERY/CONVENIENCE STORES -- 1.1%
       200,000    Farm Fresh Inc., 12.250% due
10/1/00......................................       173,750
           410    Kash N' Karry, 11.500% due
2/1/03.........................................
414
       500,000    Pathmark Stores Inc., 12.625% due
6/15/02.................................       504,375
------------------------------------------------------------
------------------
----------------------------

678,539
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       17

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
     FACE
    AMOUNT                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
HEALTHCARE/DRUGS/HOSPITAL SUPPLIES -- 0.9%
$      200,000    Magellan Health Services, Inc., 11.250%
due
4/15/04.......................   $   216,000
       330,000    OrNda Healthcorp, 12.250% due
5/15/02.....................................       358,050
------------------------------------------------------------
------------------
----------------------------

574,050
------------------------------------------------------------
------------------
----------------------------
HOTEL/GAMING -- 3.3%
       150,000    Aztar Corp., 13.750% due
10/1/04..........................................
172,125
       600,000    Courtyard By Marriott II, 10.750% due
2/1/08
(a)..........................       589,500
       400,000    Mohegan Tribal Gaming Authority, 13.500%
due 11/15/02
(a).................       503,500
                  Station Casinos Inc.:
       400,000    9.625% due
6/1/03......................................................
 ...       386,500
       300,000    10.125% due
3/15/06.....................................................
 ..       292,875
------------------------------------------------------------
------------------
----------------------------

1,944,500
------------------------------------------------------------
------------------
----------------------------
INSURANCE -- 0.5%
       250,000    Life Partners Group Inc., 12.750% due
7/15/02.............................       273,125
------------------------------------------------------------
------------------
----------------------------
LEISURE/AMUSEMENT/MOTION PICTURES -- 0.5%
       133,531    Gillett Holdings Inc., 12.250% due
6/30/02................................       140,208
       200,000    Remington Arms Inc., 10.000% due 12/1/03
(a)..............................       183,000
------------------------------------------------------------
------------------
----------------------------

323,208
------------------------------------------------------------
------------------
----------------------------
METALS/MINING -- 1.4%
       400,000    Kaiser Aluminum & Chemical Corp., 12.750%
due
2/1/03......................       423,000
       250,000    Russel Metals Inc., 10.250% due
6/15/00...................................       245,313
       135,000    UCAR Global Enterprises Inc., 12.000% due
1/15/05.........................       154,406
------------------------------------------------------------
------------------
----------------------------

822,719
------------------------------------------------------------
------------------
----------------------------
OIL/NATURAL GAS -- 2.6%
       350,000    Clark USA, 10.875% due
12/1/05............................................
363,125
       375,000    Global Marine Inc., 12.750% due
12/15/99..................................       406,875
       200,000    Mesa Operating Co., 10.625% due
7/1/06....................................       204,000
       300,000    Santa Fe Energy Resources Inc., 11.000%
due
5/15/04.......................       324,375
       225,000    United Meridian Corp., 10.375% due
10/15/05...............................       232,031
------------------------------------------------------------
------------------
----------------------------

1,530,406
------------------------------------------------------------
------------------
----------------------------
OTHER UTILITIES -- 0.5%
       300,000    California Energy, 9.875% due
6/30/03.....................................       304,125
------------------------------------------------------------
------------------
----------------------------
PAPER/FOREST PRODUCTS/PRINTING -- 3.0%
       250,000    Crown Paper Co., 11.000% due
9/1/05.......................................       238,125
       350,000    Indah Kiat International Finance Co.,
11.375% due
6/15/02.................       368,375
       200,000    Polysindo International Finance, 11.375%
due
6/15/06......................       203,250
       250,000    Repap New Brunswick Inc., 10.625% due
4/15/05.............................       234,375
       275,000    SD Warren Co., 12.000% due
12/15/04.......................................
291,500
       400,000    Tjiwi Kimia International Finance Co.,
13.250% due
8/1/01.................       448,000
------------------------------------------------------------
------------------
----------------------------

1,783,625
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       18

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO
<TABLE>
<CAPTION>
     FACE
    AMOUNT                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
PERSONAL CARE PRODUCTS/COSMETICS -- 1.5%
$       30,000    MacAndrews & Forbes Group, 12.250% due
7/1/96.............................   $    30,000
       400,000    Revlon Consumer Products Corp., 10.500%
due
2/15/03.......................       403,500
       550,000    Revlon Worldwide Corp., zero coupon due
3/15/98...........................       458,563
------------------------------------------------------------
------------------
----------------------------

892,063
------------------------------------------------------------
------------------
----------------------------
REAL ESTATE DEVELOPMENT/REITS -- 0.5%
       300,000    Trizec Finance, 10.875% due
10/15/05......................................       301,875
------------------------------------------------------------
------------------
----------------------------
RETAIL -- 0.5%
       250,000    Barnes & Noble Inc., 11.875% due
1/15/03..................................       268,750
------------------------------------------------------------
------------------
----------------------------
TELEPHONE/COMMUNICATIONS -- 6.5%
       150,000    Alvey Systems Inc., 11.375%, due 1/31/03
(a)..............................       155,063
       500,000    Clearnet Communications, step bond to
yield 14.750% due
12/15/05..........       312,500
       600,000    Dial Call Communications Inc., step bond
to yield 12.250%
due 4/15/04.....       388,500
       100,000    Fonorola Inc., 12.500% due
8/15/02........................................
107,500
       300,000    Intelcom Group Inc., step bond to yield
12.500% due
5/1/06................       166,875
       375,000    Intermedia Communications Inc., step bond
to yield 12.500%
due 5/15/06....       210,000
       150,000    Metrocall Inc., 10.375% due
10/1/07.......................................       141,375
       375,000    Millicom Intl. Cellular, step bond to
yield 13.500%, due
6/1/06 (a).......       199,688
       400,000    Mobile Telecommunications Technology,
13.500% due
12/15/02................       425,500
       650,000    Nextel Communications Inc., step bond to
yield 9.750% due
8/15/04.........       385,125
       400,000    Nextlink Communications, 12.500% due
4/15/06
(a)..........................       400,000
       950,000    Telewest Communications Inc., step bond to
yield 11.000% due
10/1/07......       562,875
       325,000    USA Mobile Communications Inc., 14.000%
due
11/1/04.......................       368,875
------------------------------------------------------------
------------------
----------------------------

3,823,876
------------------------------------------------------------
------------------
----------------------------
TOBACCO -- 0.2%
       150,000    Consolidated Cigar Corp., 10.500% due
3/1/03..............................       156,375
------------------------------------------------------------
------------------
----------------------------
TRANSPORTATION -- 0.5%
       270,000    Sea Containers Ltd., Series A, 12.500% due
12/1/04........................       300,032
------------------------------------------------------------
------------------
----------------------------
                  TOTAL CORPORATE BONDS AND NOTES (Cost --
$24,989,897).....................    25,596,319
------------------------------------------------------------
------------------
----------------------------

<CAPTION>
    SHARES                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
COMMON STOCKS -- 0.3%
MINING, STEEL, IRON AND NON-PRECIOUS METALS -- 0.3%
        10,000    Freeport-McMoRan Resource Partners (Cost -
-
$216,160).....................       198,750
------------------------------------------------------------
------------------
----------------------------
CONVERTIBLE PREFERRED STOCK -- 2.0%
AUTOMOBILE/AUTO PARTS/TRUCK MANUFACTURING -- 0.4%
         3,750    Navistar International Corp., Series G,
Convertible
$6.00.................       208,594
------------------------------------------------------------
------------------
----------------------------
HEALTHCARE/DRUGS/HOSPITAL SUPPLIES -- 0.6%
        14,639    Foxmeyer Health Corp., Series A,
Convertible
$4.20........................       395,249
------------------------------------------------------------
------------------
----------------------------
METALS/MINING -- 0.4%
         8,688    BCP/Essex Holdings Inc., Series B,
Exchangeable
15.000%...................       225,888
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       19

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO
<TABLE>
<CAPTION>
    SHARES                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
TELEPHONE/COMMUNICATIONS -- 0.6%
           281    Panamsat Corp. Exchangeable
12.750%.......................................   $   325,960
------------------------------------------------------------
------------------
----------------------------
                  TOTAL CONVERTIBLE PREFERRED STOCK (Cost --
$1,224,039)....................     1,155,691
------------------------------------------------------------
------------------
----------------------------
WARRANTS -- 0.0%
BROADCASTING - TV, CABLE, AND RADIO -- 0.0%
           750    Wireless One, Expire 10/19/00
(c).........................................         6,000
------------------------------------------------------------
------------------
----------------------------
BUILDING/CONSTRUCTION -- 0.0%
           600    Miles Homes Inc., Expire 4/1/97
(c).......................................           150
------------------------------------------------------------
------------------
----------------------------
TELEPHONE/COMMUNICATIONS -- 0.0%
           600    Nextel Communications Inc., Expire 5/23/99
(c)............................            12
------------------------------------------------------------
------------------
----------------------------
                  TOTAL WARRANTS (Cost --
$11,400)..........................................
6,162
------------------------------------------------------------
------------------
----------------------------
                  TOTAL HIGH YIELD SECTOR (Cost --
$26,441,496).............................    26,956,922
------------------------------------------------------------
------------------
----------------------------

<CAPTION>
     FACE
   AMOUNT+                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
INTERNATIONAL SECTOR -- 25.9%
------------------------------------------------------------
------------------
----------------------------
BONDS -- 25.9%
ARGENTINA -- 0.4%
       300,000    Argentina Discount Series L, 6.438% due
3/31/23
++........................       209,814
------------------------------------------------------------
------------------
----------------------------
AUSTRALIA -- 3.1%
       400,000    New South Wales Treasury Corp., 12.000%
due
12/1/01.......................       357,673
                  Queensland Treasury Corp.:
     1,200,000    8.000% due
5/14/97.....................................................
 ...       947,473
       700,000    8.000% due
5/14/03.....................................................
 ...       524,422
------------------------------------------------------------
------------------
----------------------------

1,829,568
------------------------------------------------------------
------------------
----------------------------
CANADA -- 2.0%
                  Government of Canada:
       150,000    7.500% due
7/1/97......................................................
 ...       112,030
       650,000    11.750% due
2/1/03......................................................
 ..       585,340
       100,000    International Finance Corp., 7.750% due
8/18/98...........................        75,281
       300,000    KFW International Finance, 9.500% due
5/13/02.............................       239,849
       250,000    Rogers Cablesystems, 9.650% due
1/15/14...................................       159,716
------------------------------------------------------------
------------------
----------------------------

1,172,216
------------------------------------------------------------
------------------
----------------------------
DENMARK -- 1.0%
     3,250,000    Kingdom of Denmark, 8.000% due
5/15/03....................................       588,551
------------------------------------------------------------
------------------
----------------------------
FINLAND -- 2.0%
     2,000,000    Finnish Export Credit, 6.000% due
1/15/99.................................       439,616
     3,000,000    Government of Finland, 9.500% due
3/15/04.................................       737,328
------------------------------------------------------------
------------------
----------------------------

1,176,944
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       20

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
     FACE
   AMOUNT+                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
FRANCE -- 2.7%
     3,000,000    French Treasury Bill, 5.750% due
3/12/01..................................   $   586,970
     5,000,000    Government of France, 6.750% due
10/25/04.................................       995,765
------------------------------------------------------------
------------------
----------------------------

1,582,735
------------------------------------------------------------
------------------
----------------------------
GERMANY -- 0.6%
       500,000    Bundesrepublic, 6.500% due
7/15/03........................................
334,417
------------------------------------------------------------
------------------
----------------------------
IRELAND -- 1.7%
       500,000    Irish Gilts, 8.000% due
10/18/00..........................................
1,001,150
------------------------------------------------------------
------------------
----------------------------
ITALY -- 4.3%
                  Buoni Poliennali Del Tesoro:
   500,000,000    12.00% due
1/1/98......................................................
 ...       341,519
   300,000,000    9.00% due
10/1/98.....................................................
 ....       198,864
   500,000,000    8.500% due
1/1/99......................................................
 ...       328,343
 2,000,000,000    8.500% due
8/1/99......................................................
 ...     1,307,240
   600,000,000    Italian Certificati di Credito Del Tesoro,
11.200% due
8/1/99.............       397,964
------------------------------------------------------------
------------------
----------------------------

2,573,930
------------------------------------------------------------
------------------
----------------------------
MEXICO -- 0.5%
       500,000    Mexican States Value Recovery Rights,
Expire 6/30/03
(c)..................             0
       500,000    United Mexican States Series B, 6.250% due
12/31/19
++....................       324,375
------------------------------------------------------------
------------------
----------------------------

324,375
------------------------------------------------------------
------------------
----------------------------
NEW ZEALAND -- 1.5%
                  New Zealand Government:
       800,000    9.000% due
11/15/96....................................................
 ...       545,942
       500,000    10.000% due
3/15/02.....................................................
 ..       357,348
------------------------------------------------------------
------------------
----------------------------

903,290
------------------------------------------------------------
------------------
----------------------------
SPAIN -- 3.4%
    40,000,000    Bancomex, 13.000% due
1/29/97.............................................
318,605
   200,000,000    Government of Spain, 10.100% due
2/28/01..................................     1,678,743
------------------------------------------------------------
------------------
----------------------------

1,997,348
------------------------------------------------------------
------------------
----------------------------
SWEDEN -- 1.4%
     5,000,000    Kingdom of Sweden, 10.250% due
5/5/03.....................................       844,420
------------------------------------------------------------
------------------
----------------------------
UNITED KINGDOM -- 1.0%
       400,000    United Kingdom Treasury Bill, 7.750% due
9/8/06...........................       613,171
------------------------------------------------------------
------------------
----------------------------
UNITED STATES -- 0.3%
       200,000    European Bank of Reconstruction and
Development, zero coupon
due

1/29/97.....................................................
 ..............
199,750
------------------------------------------------------------
------------------
----------------------------
                  TOTAL INTERNATIONAL SECTOR (Cost --
$14,837,671)..........................    15,351,679
------------------------------------------------------------
------------------
----------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       21

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                     DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
     FACE
   AMOUNT+                                         SECURITY
VALUE
<S>
<C>
------------------------------------------------------------
------------------
----------------------------
REPURCHASE AGREEMENT -- 4.5%
     2,648,000    CS First Boston Corp., 5.300% due 7/1/96;
Proceeds at
                  maturity -- $2,649,170;
                  (Fully collateralized by U.S. Treasury
Notes, 7.500% due
12/31/96;
                  Market value -- $2,705,461) (Cost --
$2,648,000)..........................   $ 2,648,000
------------------------------------------------------------
------------------
----------------------------
                  TOTAL INVESTMENTS -- 100% (Cost --
$58,205,157*)..........................   $59,203,790
------------------------------------------------------------
------------------
----------------------------
</TABLE>

(a) Security exempt from registration under Rule 144A of the
Securities Act of
    1933. This security may be resold in transactions exempt
from
registration,
    normally to qualified institutional buyers.
(b) Security issued with attached warrants.
(c) Non-income producing security.
 +  Represents local currency.
 ++  U.S. Dollar denominated security.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       22

<PAGE>

SMITH BARNEY SERIES FUNDS
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                            EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
COMMON STOCKS -- 78.4%
GAS -- 8.1%
    15,000    Coastal Corp.
 ............................................................
 ...   $   626,250
    15,000    El Paso Natural Gas Co.
 .....................................................
577,500
    20,000    Enron Corp.
 ............................................................
 .....
817,500
    12,000    MCN Corp.
 ............................................................
 .......
292,500
    20,000    PanEnergy Corp.
 ............................................................
 .       657,500
    20,000    Williams Companies Inc.
 .....................................................
990,000
------------------------------------------------------------
------------------
---------------------------

3,961,250
------------------------------------------------------------
------------------
---------------------------
TELECOMMUNICATIONS -- 10.9%
    25,000    AT&T Corp.
 ............................................................
 ......
1,550,000
    10,000    Ameritech Corp.
 ............................................................
 .       593,750
    15,000    Bellsouth Corp.
 ............................................................
 .       635,625
    15,000    GTE Corp.
 ............................................................
 .......
671,250
    35,000    MCI Communications Corp.
 ....................................................
896,875
    25,000    Teleport Communications Group, Inc.
 .........................................       478,125
    25,000    U.S. West Media
Group.......................................................
 .       456,250
------------------------------------------------------------
------------------
---------------------------

5,281,875
------------------------------------------------------------
------------------
---------------------------
UTILITIES -- 59.4%
    30,000    Allegheny Power System, Inc.
 ................................................
926,250
    25,000    American Electric Power Inc.
 ................................................
1,065,625
    30,000    Baltimore Gas & Electric Co.
 ................................................
851,250
    20,000    Boston Edison Co.
 ...........................................................
510,000
    31,500    Carolina Power & Light Co.
 ..................................................
1,197,000
    25,000    Central & South West Corp.
 ..................................................
725,000
    25,000    CINergy Corp.
 ............................................................
 ...       800,000
    20,000    CIPSCO, Inc.
 ............................................................
 ....       772,500
    16,500    CMS Energy Corp.
 ............................................................
509,438
    25,000    Consolidated Edison Co. of New York, Inc.
 ...................................       731,250
    30,000    DPL Inc.
 ............................................................
 ........
731,250
    40,000    DQE Inc.
 ............................................................
 ........
1,100,000
    35,000    DTE Energy Co.
 ............................................................
 ..     1,080,625
    35,000    Edison
International...............................................
 ..........
616,875
    25,000    Enova Corp.
 ............................................................
 .....
578,125
    28,000    Entergy Corp.
 ............................................................
 ...       794,500
    40,000    FPL Group Inc.
 ............................................................
 ..     1,840,000
    25,000    General Public Utilities Corp.
 ..............................................       881,250
    50,000    Houston
Industries..................................................
 .........
1,231,250
    50,000    Illinova Corp.
 ............................................................
 ..     1,437,500
    10,000    New England Electric
System..................................................
363,750
    35,000    NIPSCO Industries, Inc.
 .....................................................
1,408,750
    25,000    Ohio Edison Co.
 ............................................................
 .       546,875
    27,000
Pacificorp..................................................
 .................
600,750
    21,000    PECO Energy Co.
 ............................................................
 .       546,000
    30,000    Pinnacle West Capital Corp.
 .................................................
911,250
    25,000    Portland General Corp.
 ......................................................
771,875
    25,000    Public Service Co. of
Colorado...............................................
918,750
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       23

<PAGE>

SMITH BARNEY SERIES FUNDS
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                            EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
UTILITIES -- 59.4% (CONTINUED)
    25,000    Public Service Co. of New Mexico
(a).........................................   $   512,500
    25,000    SCANA Corp.
 ............................................................
 .....
703,125
    35,000    Southern Co.
 ............................................................
 ....       861,875
    35,000    Texas Utilities Co.
 .........................................................
1,496,250
    25,000    Unicom Corp.
 ............................................................
 ....       696,875
     7,000    Wisconsin Energy Corp.
 ......................................................
202,125
------------------------------------------------------------
------------------
---------------------------

28,920,438
------------------------------------------------------------
------------------
---------------------------
              TOTAL COMMON STOCKS (Cost --
$32,839,317)....................................
38,163,563
------------------------------------------------------------
------------------
---------------------------
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CORPORATE BONDS AND NOTES -- 18.1%
              Arizona Public Service Co., First Mortgage:
$  250,000      7.250% due
8/1/23......................................................
 ....       230,000
   250,000      8.750% due
1/15/24.....................................................
 ....       264,375
   200,000      8.000% due
2/1/25......................................................
 ....       197,250
   255,000    Central Illinois Public Service Co., 8.500%
due
5/15/22......................       272,213
   200,000    Cincinnati Gas & Electric Co., 8.500% due
9/1/22.............................       210,750
   250,000    Commonwealth Edison Co., 8.375% due
9/15/22..................................       248,125
   250,000    Dayton Power & Light Co., First Mortgage,
8.150% due
1/15/26.................       255,938
              Duquesne Light Co., 1st Collateral Trust:
   200,000      8.375% due
5/15/24.....................................................
 ....       205,000
   250,000      7.550% due
6/15/25.....................................................
 ....       235,625
   200,000    Idaho Power Co., First Mortgage, 8.750% due
3/15/27..........................       209,750
   500,000    Illinois Power Co., 8.000% due
2/15/23.......................................       490,625
   300,000    Kentucky Utilities Co., 8.550% due
5/15/27...................................       318,750
              Madison Gas & Electric Co., First Mortgage:
   200,000      8.500% due
4/15/22.....................................................
 ....       210,250
   500,000      7.700% due
2/15/28.....................................................
 ....       496,250
   250,000    Midwest Power Systems Inc., 8.125% due
2/1/23................................       259,375
   200,000    New England Power Co., General & Reference,
8.000% due
8/1/22................       203,750
              New York State Electric & Gas Corp., First
Mortgage:
   250,000      8.300% due
12/15/22....................................................
 ....       249,063
   250,000      7.450% due
7/15/23.....................................................
 ....       235,938
   250,000    Niagara Mohawk Power Co., 8.500% due
7/1/23..................................       209,375
   250,000    Pacific Gas & Electric Co., 6.750% due
10/1/23...............................       220,000
   500,000    Pennsylvania Power & Light Co., 8.500% due
5/1/22............................       525,625
   300,000    Public Service Co., Oklahoma, First Mortgage,
7.375% due
4/1/23..............       288,375
   196,000    Public Service Electric & Gas Co., 1st &
Refunding, 8.750% due
2/1/22........       209,965
   200,000    San Diego Gas & Electric Co., 8.500% due
4/1/22..............................       209,500
   550,000    Tampa Electric Co., 7.750% due
11/1/22.......................................       545,188
   500,000    Texas Utilities Co., 7.625% due
7/1/25.......................................       471,875
   250,000    Virginia Electric & Power Co., First Mortgage,
7.500% due
6/1/23.............       240,938
   400,000    Wisconsin Electric Power Co., First Mortgage,
7.050% due
8/1/24..............       371,500
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       24

<PAGE>

SMITH BARNEY SERIES FUNDS
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                            EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CORPORATE BONDS AND NOTES -- 18.1% (CONTINUED)
$  300,000    Wisconsin Power & Light Co., Note, 8.600% due
3/15/27........................   $   315,000
   425,000    Wisconsin Public Service Corp., First
Mortgage, 7.125% due
7/1/23............       396,309
------------------------------------------------------------
------------------
---------------------------
              TOTAL CORPORATE BONDS AND NOTES (Cost --
$8,857,927).........................     8,796,677
------------------------------------------------------------
------------------
---------------------------
REPURCHASE AGREEMENT -- 3.5%
 1,686,000    Citibank, 5.330% due 7/1/96; Proceeds at
maturity -- $1,686,748;
              (Fully collateralized by U.S. Treasury Notes,
6.125% due
5/31/97;
              Market value -- $1,720,408) (Cost --
$1,686,000).............................     1,686,000
------------------------------------------------------------
------------------
---------------------------
              TOTAL INVESTMENTS -- 100% (Cost --
$43,383,244*).............................   $48,646,240
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       25

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
COMMON STOCKS -- 93.4%
BASIC INDUSTRIES -- 6.6%
       360  Air Products & Chemicals Inc.
 .................................................   $
20,790
       730  Alcan Aluminum Ltd.
 ...........................................................
22,265
       400  Alco Standard Corp.
 ...........................................................
18,100
       890  Allied Signal Inc.
 ............................................................
50,841
       550  Aluminum Co. of
America.....................................................
 ...        31,556
       560  Applied Materials
(a).........................................................
 .        17,080
       340  Armco Inc.
(a).........................................................
 ........
1,700
       130  ASARCO Inc.
 ............................................................
 .......
3,591
       160  Avery Dennison Corp.
 ..........................................................
8,780
     1,140  Barrick Gold Corp.
 ............................................................
30,922
       160  Bemis Inc.
 ............................................................
 ........
5,600
       350  Bethlehem Steel Corp.
(a)......................................................
4,156
       160  B.F. Goodrich Co.
 ............................................................
 .         5,980
       150  Boise Cascade Corp.
 ...........................................................
5,494
       300  Champion International Corp.
 ..................................................
12,525
       290  Cyprus Amax Minerals Co.
 ......................................................
6,561
       790  Dow Chemical Co.
 ............................................................
 ..        60,040
       400  Echo Bay Mines Ltd.
 ...........................................................
4,300
     1,780  E.I. du Pont De Nemours & Co.
 .................................................
140,842
       455  Engelhard Corp.
 ............................................................
 ...        10,465
       110  FMC Corp.
(a).........................................................
 .........
7,177
       630  Freeport-McMoRan Copper &
Gold.................................................
20,081
       160  General Signal Corp.
 ..........................................................
6,060
       300  Georgia Pacific Corp.
 .........................................................
21,300
       200  Great Lakes Chemical Corp.
 ....................................................
12,450
       150  Harnischfeger Industries Inc.
 .................................................
4,987
       350  Hercules Inc.
 ............................................................
 .....
19,337
       470  Homestake Mining Co.
 ..........................................................
8,049
       370  Inco Ltd.
 ............................................................
 .........
11,932
       150  Inland Steel Industries Inc.
 ..................................................
2,944
       951  International Paper Co.
 .......................................................
35,068
       370  ITT Industries Inc.
 ...........................................................
9,296
       260  James River Corp. of
Virginia..................................................
6,857
       896  Kimberly Clark Corp.
 ..........................................................
69,216
       340  Louisiana Pacific Corp.
 .......................................................
7,522
       170  Mead Corp.
 ............................................................
 ........
8,819
     1,860  Monsanto Co.
 ............................................................
 ......
60,450
       460  Morton International Industries Inc.
 ..........................................        17,135
        30  Nacco Industries Inc.
 .........................................................
1,661
       210  Nalco Chemical Co.
 ............................................................
6,615
       289  Newmont Mining Corp.
 ..........................................................
14,269
       270  Nucor Corp.
 ............................................................
 .......
13,669
       210  Phelps Dodge Corp.
 ............................................................
13,099
       760  Placer Dome Inc.
 ............................................................
 ..        18,145
        90  Potlatch Corp.
 ............................................................
 ....         3,521
       600  PPG Industries Inc.
 ...........................................................
29,250
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       26

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
BASIC INDUSTRIES -- 6.6% (CONTINUED)
       490  Praxair Inc.
 ............................................................
 ......   $
20,702
       200  Reynolds Metals Co.
 ...........................................................
10,425
       210  Rohm & Haas Co.
 ............................................................
 ...        13,177
       150  Sigma-Aldrich Corp.
 ...........................................................
8,025
       312  Stone Container Corp.
 .........................................................
4,290
       170  Temple Inland Inc.
 ............................................................
7,947
        90  Trinova Corp.
 ............................................................
 .....
3,004
       220  Union Camp Corp.
 ............................................................
 ..        10,725
       430  Union Carbide Corp.
 ...........................................................
17,092
       260  USX-U.S. Steel
Group.......................................................
 ....         7,377
       310  Westvaco Corp.
 ............................................................
 ....         9,261
       650  Weyerhauser Co.
 ............................................................
 ...        27,625
       170  Willamette
Industries..................................................
 ........
10,115
     1,560  WMX Technologies Inc.
 .........................................................
51,090
       280  Worthington Industries Inc.
 ...................................................
5,845
       310  W.R. Grace & Co.
 ............................................................
 ..        21,971
------------------------------------------------------------
------------------
---------------------------

1,119,168
------------------------------------------------------------
------------------
---------------------------
CAPITAL GOODS -- 7.5%
       110  Armstrong World Industries
Inc.................................................
6,339
     1,105  Boeing Co.
 ............................................................
 ........
96,273
        90  Briggs &
Stratton....................................................
 ..........
3,701
       670  Browning Ferris Industries Inc.
 ...............................................
19,430
       610  Caterpillar Inc.
 ............................................................
 ..        41,328
        80  Centex Corp.
 ............................................................
 ......
2,490
       130  Cincinnati Milacron Inc.
 ......................................................
3,120
       340  Cooper Industries Inc.
 ........................................................
14,110
        90  Crane Co.
 ............................................................
 .........
3,690
       120  Cummins Engine Inc.
 ...........................................................
4,845
       320  Dana Corp.
 ............................................................
 ........
9,920
       820  Deere & Co.
 ............................................................
 .......
32,800
       350  Dover Corp.
 ............................................................
 .......
16,144
       240  Eaton Corp.
 ............................................................
 .......
14,070
       190  Echlin Inc.
 ............................................................
 .......
7,196
       705  Emerson Electric Co.
 ..........................................................
63,714
       260  Fluor Corp.
 ............................................................
 .......
16,997
       120  Foster Wheeler Corp.
 ..........................................................
5,385
       190  General Dynamics Corp.
 ........................................................
11,780
     5,240  General Electric Co.
 ..........................................................
453,260
       100  Giddings & Lewis Inc.
 .........................................................
1,625
       380  Illinois Tool Works Inc.
 ......................................................
25,697
       340  Ingersoll Rand Co.
 ............................................................
14,875
       120  Johnson Controls Inc.
 .........................................................
8,340
       120  Kaufman & Broad Home Corp.
 ....................................................
1,740
       626  Lockheed Corp.
 ............................................................
 ....        52,584
       700  McDonnell Douglas Corp.
 .......................................................
33,950
       310  Moore Corporation Ltd.
 ........................................................
5,851
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       27

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CAPITAL GOODS -- 7.5% (CONTINUED)
       240  Navistar International Corp.
(a)...............................................   $
2,370
       200  Northrop Grumman Corp.
 ........................................................
13,625
       150  Ogden Corp.
 ............................................................
 .......
2,719
       160  Owens-Corning Fiberglass Corp.
(a).............................................
6,880
       115  Paccar Inc.
 ............................................................
 .......
5,635
       230  Parker Hannifin Corp.
 .........................................................
9,746
       140  Raychem Corp.
 ............................................................
 .....
10,063
       760  Raytheon Corp.
 ............................................................
 ....        39,235
       690  Rockwell International Corp.
 ..................................................
39,503
       410  Santa Fe Pacific Gold Corp.
 ...................................................
5,791
       280  Stanley
Works.......................................................
 ...........
8,330
       170  Teledyne Inc.
 ............................................................
 .....
6,141
       260  Textron Inc.
 ............................................................
 ......
20,768
       100  Timken Co.
 ............................................................
 ........
3,875
       120  Thomas & Betts Corp.
 ..........................................................
4,500
       200  TRW Inc.
 ............................................................
 ..........
17,975
       480  Tyco International Ltd.
 .......................................................
19,560
       390  United Technologies Corp.
 .....................................................
44,850
       120  Varity Corp.
(a).........................................................
 ......
5,775
     1,320  Westinghouse Electric Corp.
 ...................................................
24,750
       160  W.W. Grainger Inc.
 ............................................................
12,400
------------------------------------------------------------
------------------
---------------------------

1,275,745
------------------------------------------------------------
------------------
---------------------------
CONSUMER DURABLES -- 2.8%
       270  Black & Decker Corp.
 ..........................................................
10,429
       220  Case Corp.
 ............................................................
 ........
10,560
     1,180  Chrysler Corp.
 ............................................................
 ....        73,160
       260  Cooper Tire & Rubber Co.
 ......................................................
5,785
       720  Corning Inc.
 ............................................................
 ......
27,630
       140  Fleetwood Enterprises Inc.
 ....................................................
4,340
     3,710  Ford Motor Co.
 ............................................................
 ....       120,111
     2,390  General Motors Corp.
 ..........................................................
125,176
       390  Genuine Parts Co.
 ............................................................
 .        17,843
       490  Goodyear Tire & Rubber Co.
 ....................................................
23,643
       510  Masco Corp.
 ............................................................
 .......
15,428
       340  Maytag Corp.
 ............................................................
 ......
7,098
       500  Newell Co.
 ............................................................
 ........
15,312
        60  Outboard Marine Corp.
 .........................................................
1,088
        80  Pulte Corp.
 ............................................................
 .......
2,140
       120  Snap-On Tools Corp.
 ...........................................................
5,685
       230  Whirlpool Corp.
 ............................................................
 ...        11,414
------------------------------------------------------------
------------------
---------------------------

476,842
------------------------------------------------------------
------------------
---------------------------
CONSUMER NON-DURABLES -- 13.1%
       110  Adolph Coors Co., Class B
Shares...............................................
1,966
       570  American Brands Inc.
 ..........................................................
25,864
       810  Anheuser Busch Cos. Inc.
 ......................................................
60,750
     1,647  Archer Daniels Midland Co.
 ....................................................
31,499
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       28

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CONSUMER NON-DURABLES -- 13.1% (CONTINUED)
       420  Avon Products Inc.
 ............................................................
$    18,952
        90  Ball Corp.
 ............................................................
 ........
2,588
       210  Brown Forman Corp., Class B
Shares.............................................
8,400
       780  Campell Soup Co.
 ............................................................
 ..        54,990
       160  Clorox Co.
 ............................................................
 ........
14,180
     7,870  Coca Cola Co.
 ............................................................
 .....
384,335
       470  Colgate Palmolive Co.
 .........................................................
39,833
       780  Conagra Inc.
 ............................................................
 ......
35,393
       460  CPC International Inc.
 ........................................................
33,120
       400  Crown Cork & Seal Inc.
(a).....................................................
18,000
       290  Dial Corp.
 ............................................................
 ........
8,301
       245  Eastman Chemical Co.
 ..........................................................
14,914
     1,100  Eastman Kodak Co.
 ............................................................
 .        85,525
       230  Fruit of the Loom Inc.
(a).....................................................
5,865
       500  General Mills Inc.
 ............................................................
27,250
     1,410  Gillette Co.
 ............................................................
 ......
87,949
       270  Hasbro Inc.
 ............................................................
 .......
9,653
       240  Hershey Foods Corp.
 ...........................................................
17,610
     1,165  H.J. Heinz Co.
 ............................................................
 ....        35,387
       350  International Flavors & Fragrances Inc.
 .......................................        16,669
       670  Kellogg Co.
 ............................................................
 .......
49,078
       230  Liz Claiborne Inc.
 ............................................................
7,964
       870  Mattel Inc.
 ............................................................
 .......
24,904
     2,220  McDonald's Corp.
 ............................................................
 ..       103,785
       460  Nike Inc., Class B
Shares......................................................
47,265
     4,940  PepsiCo Inc.
 ............................................................
 ......
174,752
     2,620  Philip Morris Co. Inc.
 ........................................................
272,480
       260  Pioneer Hi Bred
International...............................................
 ...        13,748
       140  Polaroid Corp.
 ............................................................
 ....         6,388
     2,160  Procter & Gamble Co.
 ..........................................................
195,750
       420  Quaker Oats Co.
 ............................................................
 ...        14,333
       330  Ralston Purina
Group.......................................................
 ....        21,161
       240  Reebok International Ltd.
 .....................................................
8,070
       500  Rubbermaid Inc.
 ............................................................
 ...        13,625
       120  Russell Corp.
 ............................................................
 .....
3,315
     1,530  Sara Lee Corp.
 ............................................................
 ....        49,534
     1,180  Seagram Ltd.
 ............................................................
 ......
39,678
       260  Sherwin Williams Co.
 ..........................................................
12,090
       150  Stride Rite Corp.
 ............................................................
 .         1,238
       190  Tupperware Corp.
 ............................................................
 ..         8,027
       520  Unilever N.V.
ADR.........................................................
 .....
75,465
       640  UST Inc.
 ............................................................
 ..........
21,920
       200  VF Corp.
 ............................................................
 ..........
11,925
       330  Whitman Corp.
 ............................................................
 .....
7,961
       360  W.M. Wrigley Jr. Co.
 ..........................................................
18,180
------------------------------------------------------------
------------------
---------------------------

2,241,629
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       29

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CONSUMER SERVICES -- 8.6%
       800  Albertsons Inc.
 ............................................................
 ...   $    33,100
       230  American Greetings Corp., Class A
Shares.......................................         6,296
       470  American Stores Co.
 ...........................................................
19,388
       140  Bally Entertainment Corp.
(a)..................................................
3,850
        50  Brown Group Inc.
 ............................................................
 ..           869
         6  Brunos Inc.
 ............................................................
 .......
83
       300  Brunswick Corp.
 ............................................................
 ...         6,000
       330  Charming Shoppes Inc.
 .........................................................
2,331
       300  Circuit City Stores Inc.
 ......................................................
10,838
       760  Comcast Corp., Class A Shares
(Special)........................................
14,060
        20  Cox Communications
(a).........................................................
433
       600  CUC International Inc.
(a).....................................................
21,300
       500  Darden Restaurants Inc.
(a)....................................................
5,375
       220  Dayton Hudson Corp.
 ...........................................................
22,688
       260  Deluxe Corp.
 ............................................................
 ......
9,230
       350  Dillard Department Stores Inc., Class A
Shares.................................        12,775
       300  Dow Jones & Co. Inc.
 ..........................................................
12,525
       540  Dunn & Bradstreet Corp.
 .......................................................
33,750
       200  Ecolab Inc.
 ............................................................
 .......
6,600
       650  Federated Department
Stores....................................................
22,181
       120  Fleming Cos. Inc.
 ............................................................
 .         1,725
       450  Gannett Inc.
 ............................................................
 ......
31,838
       920  Gap Inc.
 ............................................................
 ..........
29,555
       180  Giant Food Inc., Class A
Shares................................................
6,458
       120  Great Atlantic & Pacific Tea Inc.
 .............................................         3,945
       230  Harcourt General Inc.
 .........................................................
11,500
       320  Harrah's Entertainment
(a).....................................................
9,040
       150  Hilton Hotels Corp.
 ...........................................................
16,875
     1,503  Home Depot Inc.
 ............................................................
 ...        81,162
       240  Interpublic Group Cos. Inc.
 ...................................................
11,250
       710  J.C. Penney Co.
 ............................................................
 ...        37,275
       100  John H. Harland Co.
 ...........................................................
2,463
       120  Jostens Inc.
 ............................................................
 ......
2,370
     1,530  KMart Corp.
 ............................................................
 .......
18,934
       110  King World Productions Inc.
(a)................................................
4,001
       150  Knight Ridder Inc.
 ............................................................
10,875
       390  Kroger Co.
(a).........................................................
 ........
15,405
       930  Laidlaw Inc., Class B
Shares...................................................
9,416
       850  Limited Inc.
 ............................................................
 ......
18,275
        60  Longs Drug Stores Corp.
 .......................................................
2,678
       380  Loews Companies Inc.
 ..........................................................
29,973
        70  Lubys Cafeterias Inc.
 .........................................................
1,645
       400  Marriott International Inc.
 ...................................................
21,500
       790  May Department Stores Co.
 .....................................................
34,562
       320  McGraw Hill Inc.
 ............................................................
 ..        14,640
       330  Melville Corp.
 ............................................................
 ....        13,365
       110  Mercantile Stores Inc.
 ........................................................
6,449
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       30

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CONSUMER SERVICES -- 8.6% (CONTINUED)
        80  Meredith Corp.
 ............................................................
 ....   $     3,340
       150  National Service Industries Inc.
 ..............................................         5,869
       300  New York Times Co., Class A
Shares.............................................
9,788
       250  Nordstrom Inc.
 ............................................................
 ....        11,125
       190  Pep Boys - Manny, Moe and
Jack.................................................
6,460
       610  Price Costco Inc.
(a).........................................................
 .        13,191
       260  Rite Aid Corp.
 ............................................................
 ....         7,735
       480  R.R. Donnelley & Sons Co.
 .....................................................
16,740
       160  Ryan's Family Steak Houses Inc.
(a)............................................
1,480
       180  Safety-Kleen Corp.
 ............................................................
3,150
     1,250  Sears Roebuck & Co.
 ...........................................................
60,781
       380  Service Corporation
International..............................................
21,850
       130  Shoney's Inc.
(a).........................................................
 .....
1,414
        60  Spring Industries Inc.
 ........................................................
3,030
       210  Super Value Inc.
 ............................................................
 ..         6,615
       580  Sysco Corp.
 ............................................................
 .......
19,865
       200  Tandy Corp.
 ............................................................
 .......
9,475
     2,070  Tele-Communications Inc., Class A Shares
(a)...................................        37,519
     1,250  Time Warner Inc.
 ............................................................
 ..        49,063
       340  Times Mirror Co., Series
A.....................................................
14,790
       220  TJX Cos. Inc.
 ............................................................
 .....
7,425
       860  Toys 'R' Us Inc.
(a).........................................................
 ..        24,510
       200  Tribune Co.
 ............................................................
 .......
14,525
     1,160  Viacom, Inc., Class B
Shares...................................................
45,095
       780  Walgreen Co.
 ............................................................
 ......
26,130
     7,260  Wal-Mart Stores Inc.
 ..........................................................
184,222
     2,134  Walt Disney Co.
 ............................................................
 ...       134,175
       400  Wendy's International Inc.
 ....................................................
7,450
       480  Winn Dixie Stores Inc.
 ........................................................
16,980
       420  Woolworth Corp.
 ............................................................
 ...         9,450
------------------------------------------------------------
------------------
---------------------------

1,464,088
------------------------------------------------------------
------------------
---------------------------
ENERGY -- 9.4%
       290  Amerada Hess Corp.
 ............................................................
15,551
     1,570  Amoco Corp.
 ............................................................
 .......
113,629
       200  Ashland Oil Inc.
 ............................................................
 ..         7,925
       510  Atlantic Richfield Co.
 ........................................................
60,435
       450  Baker Hughes Inc.
 ............................................................
 .        14,794
       400  Burlington Resources Inc.
 .....................................................
17,200
     2,060  Chevron Corp.
 ............................................................
 .....
121,540
       490  CINergy Corp.
 ............................................................
 .....
15,680
       330  Coastal Corp.
 ............................................................
 .....
13,778
       590  Dresser Industries Inc.
 .......................................................
17,405
        60  Eastern
Enterprises.................................................
 ...........
1,995
     1,410  Edison
International...............................................
 ............
24,851
       790  Enron Corp.
 ............................................................
 .......
32,591
       210  Enserch Corp.
 ............................................................
 .....
4,568
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       31

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
ENERGY -- 9.4% (CONTINUED)
     3,910  Exxon Corp.
 ............................................................
 .......   $
339,681
       360  Halliburton Co.
 ............................................................
 ...        19,980
        70  Helmerich & Payne Inc.
 ........................................................
2,564
       160  Kerr McGee Corp.
 ............................................................
 ..         9,740
       400  LSI Logic
(a).........................................................
 .........
10,400
       100  Louisiana Land & Exploration Co.
 ..............................................         5,762
       180  McDermott International Inc.
 ..................................................
3,757
     1,250  Mobil Corp.
 ............................................................
 .......
140,156
       400  Noram Energy Corp.
 ............................................................
4,350
     1,000  Occidental Petroleum Corp.
 ....................................................
24,750
       330  Oryx Energy Co.
(a).........................................................
 ...         5,363
       470  Panhandle Eastern Corp.
 .......................................................
15,451
       140  Pennzoil Co.
 ............................................................
 ......
6,475
       820  Phillips Petroleum Co.
 ........................................................
34,338
       280  Rowan Cos. Inc.
(a).........................................................
 ...         4,130
     1,700  Royal Dutch Petroleum Co.
 .....................................................
261,375
       280  Santa Fe Energy Resources
(a)..................................................
3,325
       770  Schlumberger Ltd.
 ............................................................
 .        64,873
       270  Sonat Inc.
 ............................................................
 ........
12,150
       231  Sun Co.
 ............................................................
 ...........
7,017
       550  Tenneco Inc.
 ............................................................
 ......
28,119
       830  Texaco Inc.
 ............................................................
 .......
69,616
       780  Unocal Corp.
 ............................................................
 ......
26,325
       900  USX-Marathon
Group.......................................................
 ......
18,112
       160  Western Atlas Inc.
 ............................................................
9,320
       328  Williams Co. Inc.
 ............................................................
 .        16,236
------------------------------------------------------------
------------------
---------------------------

1,605,307
------------------------------------------------------------
------------------
---------------------------
FINANCIAL SERVICES -- 12.9%
       370  Aetna Life & Casualty
Co.......................................................
26,455
       160  Alexander & Alexander Services Inc.
 ...........................................         3,160
     1,425  Allstate Corp.
 ............................................................
 ....        65,016
     1,530  American Express Co.
 ..........................................................
68,276
       660  American General Corp.
 ........................................................
24,008
     1,520  American International Group Inc.
 .............................................       149,910
     1,434  Banc One Corp.
 ............................................................
 ....        48,756
       360  Bank of Boston Corp.
 ..........................................................
17,820
       620  Bank of New
York........................................................
 .......
31,775
     1,158  BankAmerica Corp.
 ............................................................
 .        87,719
       260  Bankers Trust of New York Corp.
 ...............................................
19,208
       310  Barnett Banks Inc.
 ............................................................
18,910
       180  Beneficial Corp.
 ............................................................
 ..        10,103
       520  Boatmens Bancshares Inc.
 ......................................................
20,865
     1,380  Chase Manhattan Bank
 ..........................................................
97,463
       580  Chubb Corp.
 ............................................................
 .......
28,928
       260  CIGNA Corp.
 ............................................................
 .......
30,648
     1,550
CitiCorp....................................................
 ..................
 .       128,069
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       32

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
FINANCIAL SERVICES -- 12.9% (CONTINUED)
       390  Comerica Inc.
 ............................................................
 .....   $
17,404
       700  CoreStates Financial Corp.
 ....................................................
26,950
       534  Dean Witter Discover & Co.
 ....................................................
30,572
       570  Federal Home Loan Mortgage Corp.
 ..............................................        48,735
     3,450  Federal National Mortgage
Association..........................................
115,575
       330  Fifth Third BanCorp.
 ..........................................................
17,820
       450  First Bank
Systems.....................................................
 ........
26,100
     1,015  First Chicago Corp.
 ...........................................................
39,712
       700  First Data Corp.
 ............................................................
 ..        55,738
       914  First Union Corp.
 ............................................................
 .        55,640
       850  Fleet Financial Group Inc.
 ....................................................
36,975
       270  General Re Corp.
 ............................................................
 ..        41,107
       200  Golden Western Financial Corp. of
Delaware.....................................        11,200
       440  Great Western Financial Corp.
 .................................................
10,505
       440  Green Tree
Financial...................................................
 ........
13,750
       390  H.F. Ahmanson & Co.
 ...........................................................
10,530
       340  H & R Block Inc.
 ............................................................
 ..        11,092
       330  Household International Inc.
 ..................................................
25,080
       390  ITT Hartford Group
(a).........................................................
20,768
       240  Jefferson Pilot Corp.
 .........................................................
12,390
       610  J.P. Morgan & Co. Inc.
 ........................................................
51,621
       760
KeyCorp.....................................................
 ..................
 .        29,450
       340  Lincoln National Corp.
 ........................................................
15,725
       510  Lowes Corp.
 ............................................................
 .......
18,424
       240  Marsh & McLennan Cos. Inc.
 ....................................................
23,160
       710  MBNA Corp.
 ............................................................
 ........
20,235
       440  Mellon Bank Corp.
 ............................................................
 .        25,080
       550  Merrill Lynch & Co. Inc.
 ......................................................
35,819
       510  Morgan Stanley
Group.......................................................
 ....        25,054
       710  National City Corp.
 ...........................................................
24,939
       950  NationsBank Corp.
 ............................................................
 .        78,494
     1,160  Norwest Corp.
 ............................................................
 .....
40,455
     1,090  PNC Bank Corp.
 ............................................................
 ....        32,427
       320  Providian Corp.
 ............................................................
 ...        13,720
       185  Republic New York Corp.
 .......................................................
11,516
       410  SAFECO Corp.
 ............................................................
 ......
14,504
       350  Salomon Inc.
 ............................................................
 ......
15,400
       280  St. Paul Cos. Inc.
 ............................................................
14,980
       740  Suntrust Bank Inc.
 ............................................................
27,380
       240  Torchmark Corp.
 ............................................................
 ...        10,500
       230  Transamerica Corp.
 ............................................................
18,630
       250  UNUM Corp.
 ............................................................
 ........
15,563
       380  USF&G Corp.
 ............................................................
 .......
6,223
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       33

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
FINANCIAL SERVICES -- 12.9% (CONTINUED)
       120  USLIFE Corp.
 ............................................................
 ......   $
3,945
       490  U.S. BanCorp of
Oregon......................................................
 ...        17,701
       550  Wachovia Corp.
 ............................................................
 ....        24,063
       317  Wells Fargo & Co.
 ............................................................
 .        75,683
------------------------------------------------------------
------------------
---------------------------

2,195,423
------------------------------------------------------------
------------------
---------------------------
HEALTHCARE -- 9.9%
     2,490  Abbott
Laboratories................................................
 ............
108,315
       200  Allergan Inc.
 ............................................................
 .....
7,850
       260  ALAZ Corp.
(a).........................................................
 ........
7,118
     2,000  American Home Products Corp.
 ..................................................
120,250
       840  Amgen Inc.
(a).........................................................
 ........
45,360
       350  Aon Corp.
 ............................................................
 .........
17,763
       180  Bausch & Lomb Inc.
 ............................................................
7,650
       850  Baxter International Inc.
 .....................................................
40,163
       200  Becton, Dickinson & Co.
 .......................................................
16,050
       310  Beverly Enterprises Inc.
(a)...................................................
3,720
       370  Biomet Inc.
(a).........................................................
 .......
5,319
       570  Boston Scientific Corp.
(a)....................................................
25,650
     1,580  Bristol Myers Squibb Co.
 ......................................................
142,200
     1,412  Columbia Healthcare Corp.
 .....................................................
75,365
       130  Community Psychiatric Centers
(a)..............................................
1,235
       170  C.R. Bard Inc.
 ............................................................
 ....         5,780
     1,750  Eli Lilly & Co.
 ............................................................
 ...       113,750
       510  Humana Inc.
(a).........................................................
 .......
9,116
     4,200  Johnson &
Johnson.....................................................
 .........
207,900
       240  Mallinckrodt Group Inc.
 .......................................................
9,330
       190  Manor Care Inc.
 ............................................................
 ...         7,481
       730  Medtronic Inc.
 ............................................................
 ....        40,880
     3,870  Merck & Co. Inc.
 ............................................................
 ..       250,099
       140  Millipore Corp.
 ............................................................
 ...         5,862
       680  Tenet Healthcare Corp.
(a).....................................................
14,535
       353  Pall Corp.
 ............................................................
 ........
8,516
     2,020  Pfizer Inc.
 ............................................................
 .......
144,177
     1,610  Pharmacia & Upjohn
(a).........................................................
71,444
     1,170  Schering-Plough Corp.
 .........................................................
73,418
       250  St. Jude Medical Inc.
(a)......................................................
8,375
       480  U.S. Healthcare Inc.
 ..........................................................
26,400
       580  United
Healthcare..................................................
 ............
29,290
       180  United States Surgical Corp.
 ..................................................
5,580
       840  Warner Lambert Co.
 ............................................................
46,200
------------------------------------------------------------
------------------
---------------------------

1,702,141
------------------------------------------------------------
------------------
---------------------------
TECHNOLOGY -- 10.8%
       410  Advanced Micro Devices Inc.
(a)................................................
5,586
       590  ALLTEL Corp.
 ............................................................
 ......
18,142
       370  Amdahl Corp.
(a).........................................................
 ......
3,978
       686  AMP Inc.
 ............................................................
 ..........
27,526
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       34

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
TECHNOLOGY -- 10.8% (CONTINUED)
       180  Andrew Corp.
(a).........................................................
 ......   $
9,675
       390  Apple Computer Inc.
 ...........................................................
8,190
       140  Autodesk Inc.
 ............................................................
 .....
4,182
       910  Automatic Data Processing Inc.
 ................................................
35,149
       590  Bay Networks
Inc.........................................................
 ......
15,193
       220  Cabletron Systems Inc.
 ........................................................
15,098
       210  Ceridian Corp.
(a).........................................................
 ....        10,605
     1,800  Cisco Systems Inc.
(a).........................................................
101,925
       840  Compaq Computer Corp.
(a)......................................................
41,370
       762  Computer Association International Inc.
 .......................................        54,293
       175  Computer Sciences Corp.
(a)....................................................
13,081
       120  Data General Corp.
(a).........................................................
1,560
       470  Digital Equipment Corp.
(a)....................................................
21,150
       360  DSC Communications Corp.
(a)...................................................
10,845
       150  EG & G Inc.
 ............................................................
 .......
3,206
       730  EMC Corp.
 ............................................................
 .........
13,596
       400  General
Instrument..................................................
 ...........
11,550
       120  Harris Corp.
 ............................................................
 ......
7,320
     1,610  Hewlett Packard Co.
 ...........................................................
160,396
       400  Honeywell Inc.
 ............................................................
 ....        21,800
     2,600  Intel Corp.
 ............................................................
 .......
190,938
       140  Intergraph Corp.
(a).........................................................
 ..         1,698
     1,710  International Business Machines Corp.
 .........................................       169,290
       380  ITT Corp.
(a).........................................................
 .........
25,175
       540  Loral Corp.
 ............................................................
 .......
7,358
       650  Micron Technology Inc.
 ........................................................
16,819
     1,880  Microsoft Corp.
(a).........................................................
 ...       225,835
     1,320  Minnesota Mining & Manufacturing Co.
 ..........................................        91,080
     1,860  Motorola Inc.
 ............................................................
 .....
116,948
       430  National Semiconductor Corp.
(a)...............................................
6,665
       810  Northern Telecom Ltd.
 .........................................................
44,044
     1,160  Novell Inc.
(a).........................................................
 .......
16,095
     2,085  Oracle Systems Corp.
 ..........................................................
82,227
       130  Perkin-Elmer Corp.
 ............................................................
6,273
       470  Pitney Bowes Inc.
 ............................................................
 .        22,443
       240  Scientific Atlanta Inc.
 .......................................................
3,720
        70  Shared Medical Systems Corp.
 ..................................................
4,498
       510  Silicon Graphics Inc.
(a)......................................................
12,240
       590  Sun Microsystems Inc.
(a)......................................................
34,737
       370  Tandem Computers Inc.
(a)......................................................
4,579
       100  Tektronix Inc.
 ............................................................
 ....         4,475
       270  Tellabs Inc.
 ............................................................
 ......
18,056
       530  Threecom Corp.
 ............................................................
 ....        24,248
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       35

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
TECHNOLOGY -- 10.8% (CONTINUED)
       590  Texas Instruments Inc.
 ........................................................   $
29,426
       680  Unicom Corp.
 ............................................................
 ......
18,955
       540  Unisys Corp.
(a).........................................................
 ......
3,848
     1,020  Xerox Corp.
 ............................................................
 .......
54,570
------------------------------------------------------------
------------------
---------------------------

1,851,656
------------------------------------------------------------
------------------
---------------------------
TRANSPORTATION -- 1.5%
       280  AMR Corp.
(a).........................................................
 .........
25,480
       490  Burlington Northern Inc.
 ......................................................
39,629
       120  Caliber Systems Inc.
 ..........................................................
4,080
       260  Conrail Inc.
 ............................................................
 ......
17,258
       140  Consolidated Freightways Inc.
 .................................................
2,957
       680  CSX Corp.
 ............................................................
 .........
32,810
       200  Delta Air Lines Inc.
 ..........................................................
16,600
       170  Federal Express Corp.
(a)......................................................
13,940
       400  Norfolk Southern Corp.
 ........................................................
33,900
       250  Ryder Systems Inc.
 ............................................................
7,031
       450  Southwest Airlines Co.
 ........................................................
13,106
       660  Union Pacific Corp.
 ...........................................................
46,117
       200  U.S. Air Group Inc.
(a)........................................................
3,600
        80  Yellow Corp.
(a).........................................................
 ......
1,060
------------------------------------------------------------
------------------
---------------------------

257,568
------------------------------------------------------------
------------------
---------------------------
UTILITIES -- 10.3%
     1,570  Airtouch Communications
(a)....................................................
44,352
       590  American Electric Power Inc.
 ..................................................
25,148
     5,070  AT&T Corp.
 ............................................................
 ........
314,340
     1,760  Ameritech Corp.
 ............................................................
 ...       104,500
       470  Baltimore Gas & Electric Co.
 ..................................................
13,336
     1,390  Bell Atlantic Corp.
 ...........................................................
88,613
     3,150  BellSouth Corp.
 ............................................................
 ...       133,481
       480  Carolina Power & Light Co.
 ....................................................
18,240
       660  Central & South West Corp.
 ....................................................
19,140
       170  Columbia Gas Systems Inc.
(a)..................................................
8,861
       740  Consolidated Edison Co. New York Inc.
 .........................................        21,645
       290  Consolidated Natural Gas Co.
 ..................................................
15,152
       450  DTE Energy Co.
 ............................................................
 ....        13,894
       550  Dominion Resources Inc. of
Virginia............................................
22,000
       640  Duke Power Co.
 ............................................................
 ....        32,800
       720  Entergy Corp.
 ............................................................
 .....
20,430
       580  FPL Group Inc.
 ............................................................
 ....        26,680
       370  General Public Utilities Corp.
 ................................................
13,043
     3,080  GTE Corp.
 ............................................................
 .........
137,830
       830  Houston Industries Inc.
 .......................................................
20,439
     2,190  MCI Communications Corp.
 ......................................................
56,119
       450  Niagara Mohawk Power Corp.
 ....................................................
3,488
       150  Nicor Inc.
 ............................................................
 ........
4,256
       210  Northern States Power Co. of
Minnesota.........................................
10,369
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       36

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
UTILITIES -- 10.3% (CONTINUED)
     1,380  NYNEX Corp.
 ............................................................
 .......   $
65,550
       480  Ohio Edison Co.
 ............................................................
 ...        10,500
        80  Oneok Inc.
 ............................................................
 ........
2,000
       920  Pacific Corp.
 ............................................................
 .....
20,470
       260  Pacific
Enterprises.................................................
 ...........
7,702
     1,330  Pacific Gas & Electric Co.
 ....................................................
30,922
     1,360  Pacific Telesis
Group.......................................................
 ...        45,900
       700  PECO Energy Co.
 ............................................................
 ...        18,200
       500  Pennsylvania Power & Lighting Co.
 .............................................        11,812
       110  Peoples Energy Corp.
 ..........................................................
3,685
       770  Public Service Enterprise
Group................................................
21,079
     1,940  SBC Communications Inc.
 .......................................................
95,545
     2,120  Southern Co.
 ............................................................
 ......
52,205
     1,400  Sprint Corp.
 ............................................................
 ......
58,800
       710  Texas Utilities Co.
 ...........................................................
30,352
     1,500  U.S. West Communications Inc.
 .................................................
47,812
     1,500  U.S. Media
Group.......................................................
 ........
27,375
       320  Union Electric Co.
 ............................................................
12,880
       600  Worldcom Inc.
 ............................................................
 .....
33,225
------------------------------------------------------------
------------------
---------------------------

1,764,170
------------------------------------------------------------
------------------
---------------------------
            TOTAL COMMON STOCKS (Cost --
$11,220,312)......................................
15,953,737
------------------------------------------------------------
------------------
---------------------------
PREFERRED STOCK -- 0.0%
        80  Alberto Culver Co., Class B Shares (Cost --
$2,072)............................         3,710
------------------------------------------------------------
------------------
---------------------------
<CAPTION>
   FACE
  AMOUNT                                       SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
SHORT-TERM INVESTMENTS -- 6.6%
$1,023,000  Repurchase Agreement -- Chase Manhattan Bank,
5.325% due 7/1/96;
Proceeds at
            maturity -- $1,023,454; (Fully collateralized by
U.S. Treasury
Notes, 6.125%,
            due 5/31/97; Market value --
$1,043,878).......................................
1,023,000
   100,000  U.S. Treasury Bill, 5.20% due 9/12/96
(b)......................................        98,935
------------------------------------------------------------
------------------
---------------------------
            TOTAL SHORT-TERM INVESTMENTS (Cost --
$1,121,998)..............................     1,121,935
------------------------------------------------------------
------------------
---------------------------
            TOTAL INVESTMENTS -- 100% (Cost --
$12,344,382*)...............................   $17,079,382
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
(b) Security segregated by Custodian for futures contract
commitments.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       37

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                          GROWTH AND INCOME PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
COMMON STOCKS -- 86.9%
COMMERCIAL SERVICES -- 4.3%
    11,000     Reuters Holdings PLC
ADR....................................................   $
797,500
    10,000     W.W. Grainger, Inc.
 ........................................................
775,000
------------------------------------------------------------
------------------
---------------------------

1,572,500
------------------------------------------------------------
------------------
---------------------------
CONSUMER DURABLES -- 2.9%
    14,000     Genuine Parts Co.
 ..........................................................
640,500
    16,000     Leggett & Platt, Inc.
 ......................................................
444,000
------------------------------------------------------------
------------------
---------------------------

1,084,500
------------------------------------------------------------
------------------
---------------------------
CONSUMER NON-DURABLES -- 8.2%
    23,000     Coca-Cola Corp.
 ............................................................
1,124,125
    12,000     International Flavors & Fragrances, Inc.
 ...................................       571,500
     8,000     Kimberly Clark Corp.
 .......................................................
618,000
     8,000     Procter & Gamble Co.
 .......................................................
725,000
------------------------------------------------------------
------------------
---------------------------

3,038,625
------------------------------------------------------------
------------------
---------------------------
CONSUMER SERVICES -- 3.4%
    15,000     McDonald's Corp.
 ...........................................................
701,250
    18,000     TCA Cable TV, Inc.
 .........................................................
544,500
------------------------------------------------------------
------------------
---------------------------

1,245,750
------------------------------------------------------------
------------------
---------------------------
ELECTRONIC TECHNOLOGY -- 10.4%
    14,000     AMP, Inc.
 ............................................................
 ......
561,750
     5,000     Harris Corp.
 ............................................................
 ...       305,000
    14,000     Hewlett Packard Co.
 ........................................................
1,394,750
    14,000     Motorola, Inc.
 ............................................................
 .       880,250
    14,000     Raytheon Co.
 ............................................................
 ...       722,750
------------------------------------------------------------
------------------
---------------------------

3,864,500
------------------------------------------------------------
------------------
---------------------------
ENERGY -- 5.0%
     5,000     Exxon Corp.
 ............................................................
 ....       434,375
     7,000     Mobil Corp.
 ............................................................
 ....       784,875
    15,000     Phillips Petroleum Co.
 .....................................................
628,125
------------------------------------------------------------
------------------
---------------------------

1,847,375
------------------------------------------------------------
------------------
---------------------------
FINANCIAL SERVICES -- 10.0%
    10,000     Beneficial Corp.
 ...........................................................
561,250
    13,000     Greenpoint Financial Corp.
 .................................................
367,250
     8,000     J.P. Morgan & Co., Inc.
 ....................................................
677,000
    17,000
KeyCorp.....................................................
 ................
658,750
    10,000     Mercury General Corp.
 ......................................................
437,500
    12,000     NationsBank Corp.
 ..........................................................
991,500
------------------------------------------------------------
------------------
---------------------------

3,693,250
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       38

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                          GROWTH AND INCOME PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
HEALTHCARE -- 7.4%
    15,000     Eli Lilly & Co.
 ............................................................
$   975,000
    20,000     Johnson &
Johnson.....................................................
 ......
990,000
    12,000     Merck & Co., Inc.
 ..........................................................
775,500
------------------------------------------------------------
------------------
---------------------------

2,740,500
------------------------------------------------------------
------------------
---------------------------
INDUSTRIAL SERVICES -- 1.8%
    10,000     Fluor Corp.
 ............................................................
 ....       653,750
------------------------------------------------------------
------------------
---------------------------
MINERALS -- 1.4%
    25,000     Worthington Industries Inc.
 ................................................
521,875
------------------------------------------------------------
------------------
---------------------------
PROCESS INDUSTRIES -- 8.0%
    11,250     A. Schulman, Inc.
 ..........................................................
275,625
    17,000     Bemis, Inc.
 ............................................................
 ....       595,000
    18,000     M.A. Hanna Co.
 ............................................................
 .       375,750
    35,000     Monsanto Co.
 ............................................................
 ...     1,137,500
    12,000     Temple-Inland, Inc.
 ........................................................
561,000
------------------------------------------------------------
------------------
---------------------------

2,944,875
------------------------------------------------------------
------------------
---------------------------
PRODUCER MANUFACTURER -- 7.7%
    15,000     Belden, Inc.
 ............................................................
 ...       450,000
    15,000     General Electric Co.
 .......................................................
1,297,500
     6,000     Hubbell, Inc., Class B
Shares...............................................
397,500
    10,000     Minnesota Mining & Manufacturing Co.
 .......................................       690,000
------------------------------------------------------------
------------------
---------------------------

2,835,000
------------------------------------------------------------
------------------
---------------------------
RETAIL -- 3.1%
    20,000     Circuit City Stores, Inc.
 ..................................................
722,500
     9,000     May Department Stores Co.
 ..................................................
393,750
     1,440     Payless Shoesource, Inc.
(a)................................................
45,720
------------------------------------------------------------
------------------
---------------------------

1,161,970
------------------------------------------------------------
------------------
---------------------------
TECHNOLOGY -- 3.5%
    18,000     Automatic Data Processing, Inc.
 ............................................       695,250
    11,262     Electronic Data Systems
(a).................................................
605,333
------------------------------------------------------------
------------------
---------------------------

1,300,583
------------------------------------------------------------
------------------
---------------------------
TRANSPORTATION -- 5.2%
     8,000     Conrail, Inc.
 ............................................................
 ..       531,000
    14,000     CSX Corp.
 ............................................................
 ......
675,500
    10,000     Union Pacific Corp.
 ........................................................
698,750
------------------------------------------------------------
------------------
---------------------------

1,905,250
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       39

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                          GROWTH AND INCOME PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
UTILITIES -- 4.6%
    12,000     Ameritech Corp.
 ............................................................
$   712,500
    17,000     GTE Corp.
 ............................................................
 ......
760,750
     5,000     Northern States Power Co.
 ..................................................
246,875
------------------------------------------------------------
------------------
---------------------------

1,720,125
------------------------------------------------------------
------------------
---------------------------
               TOTAL COMMON STOCKS (Cost --
$22,217,651)...................................
32,130,428
------------------------------------------------------------
------------------
---------------------------
FOREIGN COMMON STOCK -- 2.1%
AUSTRALIA -- 2.1%
    56,568     Broken Hill Properties (Cost --
$696,013)...................................       782,296
------------------------------------------------------------
------------------
---------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.4%
ENERGY -- 1.4%
     9,000     Unocal Corp., Convertible 7.000% (b) (Cost --
$485,250).....................       509,625
------------------------------------------------------------
------------------
---------------------------
<CAPTION>
   FACE
  AMOUNT                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CORPORATE DEBENTURES -- 5.4%
FINANCIAL SERVICES -- 4.0%
$  500,000     Dean Witter, Discover & Co., 6.875% due
3/1/03..............................       493,750
 1,000,000     General Motors Acceptance Corp., 7.000% due
9/15/02.........................       995,000
------------------------------------------------------------
------------------
---------------------------

1,488,750
------------------------------------------------------------
------------------
---------------------------
RETAIL -- 1.4%
   500,000     Limited Inc., 7.800% due
5/15/02............................................
498,125
------------------------------------------------------------
------------------
---------------------------
               TOTAL CORPORATE DEBENTURES (Cost --
$2,056,336).............................     1,986,875
------------------------------------------------------------
------------------
---------------------------
CONVERTIBLE NOTE -- 2.6%
MANUFACTURING -- 2.6%
   350,000     Thermo Electron Corp., 4.625% due 8/1/97
(Cost --
$483,824).................       972,125
------------------------------------------------------------
------------------
---------------------------
REPURCHASE AGREEMENT -- 1.6%
   600,000     Chase Manhattan Bank, 5.330% due 7/1/96;
Proceeds at maturity -
- $600,266;
               (Fully collateralized by U.S. Treasury Notes,
6.125% due
5/31/97;
               Market value -- $612,245) (Cost --
$600,000)................................       600,000
------------------------------------------------------------
------------------
---------------------------
               TOTAL INVESTMENTS -- 100% (Cost --
$26,539,074*)............................   $36,981,349
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
(b) Security exempt from registration under rule 144A of
Securities Act of
1933.
    This security may be resold in transactions exempt from
registrations,
    normally to qualified and institutional buyers.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       40

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             APPRECIATION PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
COMMON STOCKS -- 87.2%
BASIC INDUSTRIES -- 4.8%
      7,000    Aluminum Co. of
America.....................................................
$   401,625
     19,500    E.I. du Pont De Nemours & Co.
 ..............................................     1,542,938
     15,000    Hercules, Inc.
 ............................................................
 .       828,750
     12,500    Olin Corp.
 ............................................................
 .....
1,115,625
      9,100    St. Joe Paper Co.
 ..........................................................
586,950
      8,000    Santa Fe Pacific Gold Co.
 ..................................................
113,000
     13,000    Wellman, Inc.
 ............................................................
 ..       303,875
------------------------------------------------------------
------------------
---------------------------

4,892,763
------------------------------------------------------------
------------------
---------------------------
CAPITAL GOODS -- 9.0%
     21,000    Allied Signal, Inc.
 ........................................................
1,199,625
     35,000    AMP, Inc.
 ............................................................
 ......
1,404,375
     10,000    Boeing Co.
 ............................................................
 .....
871,250
     10,000    Browning-Ferris Industries, Inc.
 ...........................................       290,000
      7,000    Emerson Electric Co.
 .......................................................
632,625
     17,000    General Electric Co.
 .......................................................
1,470,500
     20,000    Honeywell, Inc.
 ............................................................
1,090,000
      8,000    Kennametal, Inc.
 ...........................................................
272,000
     18,000    Tyco International Ltd.
 ....................................................
733,500
     36,000    WMX Technologies, Inc.
 .....................................................
1,179,000
------------------------------------------------------------
------------------
---------------------------

9,142,875
------------------------------------------------------------
------------------
---------------------------
CONSUMER DURABLES -- 4.3%
     12,000    Chrysler Corp.
 ............................................................
 .       744,000
     19,000    Echlin, Inc.
 ............................................................
 ...       719,625
     16,000    General Motors Corp.
 .......................................................
838,000
     11,000    Goodyear Tire & Rubber Co.
 .................................................
530,750
     25,500    Newell Co.
 ............................................................
 .....
780,938
     24,000    Stanley
Works.......................................................
 ........
714,000
------------------------------------------------------------
------------------
---------------------------

4,327,313
------------------------------------------------------------
------------------
---------------------------
CONSUMER NON-DURABLES -- 8.0%
      2,600    Anheuser-Busch Cos., Inc.
 ..................................................
195,000
      9,500    CPC International, Inc.
 ....................................................
684,000
     20,000    Coca-Cola Co.
 ............................................................
 ..       977,500
     25,500    Comcast Corp., Class A
Shares...............................................
471,750
     15,000    Gillette Co.
 ............................................................
 ...       935,625
      6,000    International Flavors & Fragrances, Inc.
 ...................................       285,750
     17,000    J.C. Penny Co.
 ............................................................
 .       892,500
     10,000    Mattel, Inc.
 ............................................................
 ...       286,250
     12,000    Nabisco Holdings Corp.
 .....................................................
424,500
     17,000    Proctor & Gamble Co.
 .......................................................
1,540,625
      7,000    Unilever NV, New York
Shares................................................
1,015,875
      7,000    W.M. Wrigley Jr. Co.
 .......................................................
353,500
------------------------------------------------------------
------------------
---------------------------

8,062,875
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       41

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             APPRECIATION PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
CONSUMER SERVICES -- 8.7%
     16,000    Gannett Co.
 ............................................................
 ....   $ 1,132,000
     27,000    McDonald's Corp.
 ...........................................................
1,262,250
     11,000    Meredith Corp.
 ............................................................
 .       459,250
     30,000    New York Times Co., Class A
Shares..........................................
978,750
     17,500    R.R. Donnelley & Sons Co.
 ..................................................
610,313
     30,000    Savoy Pictures Entertainment, Inc.
(a)......................................       161,250
     12,000    Scandinavian Broadcasting System
(a)........................................       294,000
      6,000    Scholastic Corp.
 ...........................................................
372,000
     15,000    Time Warner, Inc.
 ..........................................................
588,750
      8,500    Tribune Co.
 ............................................................
 ....       617,313
     50,000    Wal-Mart Stores, Inc.
 ......................................................
1,268,750
     16,000    Walt Disney Production Co.
 .................................................
1,006,000
------------------------------------------------------------
------------------
---------------------------

8,750,626
------------------------------------------------------------
------------------
---------------------------
DIVERSIFIED CONGLOMERATE -- 5.7%
     48,000    Eastman Kodak Co.
 ..........................................................
3,732,000
     30,200    Minnesota Mining & Manufacturing Co.
 .......................................     2,083,800
------------------------------------------------------------
------------------
---------------------------

5,815,800
------------------------------------------------------------
------------------
---------------------------
ENERGY -- 9.4%
     27,800    Amoco Corp.
 ............................................................
 ....     2,012,025
      5,000    Amerada Hess Corp.
 .........................................................
268,125
      5,000    Atlantic Richfield Co.
 .....................................................
592,500
     14,000    Chevron Corp.
 ............................................................
 ..       826,000
     10,000    Enron Corp.
 ............................................................
 ....       408,750
     14,000    Horsham Corp.
 ............................................................
 ..       194,250
     20,500    Mobil Corp.
 ............................................................
 ....     2,298,563
      7,000    Royal Dutch Petroleum
ADR...................................................
1,076,250
     23,500    Tenneco, Inc.
 ............................................................
 ..     1,201,438
     20,000    Unocal Corp.
 ............................................................
 ...       675,000
------------------------------------------------------------
------------------
---------------------------

9,552,901
------------------------------------------------------------
------------------
---------------------------
FINANCIAL SERVICES -- 12.5%
     45,000    Allstate Corp.
 ............................................................
 .     2,053,125
     32,000    American Express Co.
 .......................................................
1,428,000
     10,000    American International Group, Inc.
 .........................................       986,250
     25,520    Chase Manhattan Bank
 .......................................................
1,802,350
     21,000    Chubb Corp.
 ............................................................
 ....     1,047,375
     24,000    Federal National Mortgage
Association.......................................
804,000
      5,000    First of America Bank Corp.
 ................................................
223,750
     10,000    First Virginia Banks, Inc.
 .................................................
400,000
     15,000    Great Western Financial Corp.
 ..............................................       358,125
     20,000    Household International, Inc.
 ..............................................     1,520,000
     24,000    Leucadia National Corp.
 ....................................................
588,000
      6,000    Union Planters Corp.
 .......................................................
182,250
      5,000    Wells Fargo & Co.
 ..........................................................
1,194,375
------------------------------------------------------------
------------------
---------------------------

12,587,600
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       42

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             APPRECIATION PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
HEALTHCARE -- 8.6%
     26,000    Abbott
Laboratories................................................
 .........   $
1,131,000
     22,000    American Home
Products....................................................
 ..     1,322,750
      6,000    Amgen Inc.
(a).........................................................
 .....
324,000
     16,000    Bristol Myers Squibb Co.
 ...................................................
1,440,000
      4,000    Eli Lilly & Co.
 ............................................................
260,000
     32,000    Johnson &
Johnson.....................................................
 ......
1,584,000
     29,000    Merck & Co., Inc.
 ..........................................................
1,874,125
     14,000    Warner Lambert Co.
 .........................................................
770,000
------------------------------------------------------------
------------------
---------------------------

8,705,875
------------------------------------------------------------
------------------
---------------------------
TECHNOLOGY -- 8.4%
     10,000    Hewlett-Packard Co.
 ........................................................
996,250
     15,000    Intel Corp.
 ............................................................
 ....     1,101,563
     13,500    International Business Machines Corp.
 ......................................     1,336,500
     12,000    Lockheed Martin Corp.
 ......................................................
1,008,000
      3,000    Microsoft Corp.
(a).........................................................
360,375
      8,000    Seagate Technology, Inc.
(a)................................................
360,000
      9,000    Silicon Graphics, Inc.
(a)..................................................
216,000
     24,000    Teradyne, Inc.
(a).........................................................
 .       414,000
     50,000    Xerox Corp.
 ............................................................
 ....     2,675,000
------------------------------------------------------------
------------------
---------------------------

8,467,688
------------------------------------------------------------
------------------
---------------------------
TELECOMMUNICATION -- 6.0%
     41,000    AT&T Corp.
 ............................................................
 .....
2,542,000
     10,000    California Microwave, Inc.
(a)..............................................
152,500
     21,000    Corning, Inc.
 ............................................................
 ..       805,875
      6,500    GTE Corp.
 ............................................................
 ......
290,875
     20,000    NYNEX Corp.
 ............................................................
 ....       950,000
     38,000    Tele-Communications, Inc., Class A Shares
(a)...............................       688,750
     15,000    Viacom, Inc., Class B Shares
(a)............................................
583,121
------------------------------------------------------------
------------------
---------------------------

6,013,121
------------------------------------------------------------
------------------
---------------------------
TRANSPORTATION -- 1.8%
     13,300    AMR Corp.
(a).........................................................
 ......
1,210,300
     22,000    Union Pacific Corp.
 ........................................................
588,500
------------------------------------------------------------
------------------
---------------------------

1,798,800
------------------------------------------------------------
------------------
---------------------------
               TOTAL COMMON STOCKS (Cost --
$69,150,450)...................................
88,118,237
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       43

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             APPRECIATION PORTFOLIO
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
REPURCHASE AGREEMENT -- 12.8%
$12,935,000    Citibank, 5.396% due 7/1/96; Proceeds at
maturity --
$12,940,816;
               (Fully collateralized by U.S. Treasury Note,
6.375% due
5/15/99;
               Market value -- $13,195,072) (Cost --
$12,935,000).........................   $ 12,935,000
------------------------------------------------------------
------------------
---------------------------
               TOTAL INVESTMENTS -- 100% (Cost --
$82,085,450*)...........................   $101,053,237
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       44

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
COMMON STOCKS -- 95.4%
BASIC INDUSTRIES/RAW MATERIALS -- 2.6%
   2,000  B.F. Goodrich, Inc.
 ............................................................
$    74,750
   1,000  LSI Industries, Inc.
 ...........................................................
17,250
   2,000  Millipore Corp.
 ............................................................
 ....        83,750
   1,000  Mueller Industries, Inc.
(a)....................................................
41,500
   1,500  Pentair, Inc.
 ............................................................
 ......
45,000
   1,000  Potash Saskatchewan Corp., Inc.
 ................................................
66,250
   1,000  Raychem Corp.
 ............................................................
 ......
71,875
   1,000  UCAR International, Inc.
(a)....................................................
41,625
   2,000  U.S. Filter Corp.
(a).........................................................
 ..        69,500
------------------------------------------------------------
------------------
--------------------------

511,500
------------------------------------------------------------
------------------
--------------------------
CAPITAL GOODS/PRODUCTION -- 2.7%
   2,000  Danaher Corp.
 ............................................................
 ......
87,000
   1,500  Greenfield Industries, Inc.
 ....................................................
49,500
   1,500  Precision Castparts Corp.
 ......................................................
64,500
   2,000  Sanifill, Inc.
(a).........................................................
 .....
98,500
   1,000  Sealed Air Corp.
(a).........................................................
 ...        33,625
   2,000  Thermedics, Inc.
(a).........................................................
 ...        50,000
     500  Thermo Instrument Systems, Inc.
(a).............................................
16,125
   4,000  United Waste Systems, Inc.
(a)..................................................
129,000
------------------------------------------------------------
------------------
--------------------------

528,250
------------------------------------------------------------
------------------
--------------------------
CHEMICALS -- 0.4%
   2,000  Praxair, Inc.
 ............................................................
 ......
84,500
------------------------------------------------------------
------------------
--------------------------
COMMERCIAL SERVICES -- 4.4%
   5,500  Accustaff, Inc.
(a).........................................................
 ....       149,875
   1,500  Corestaff, Inc.
(a).........................................................
 ....        67,125
   4,000  Corrections Corp. of America
(a)................................................
280,000
   4,000  Gartner Group, Inc.
(a).........................................................
146,500
   1,500  Ha-Lo Industries, Inc.
(a)......................................................
39,000
   1,500  National Data Corp.
 ............................................................
51,375
   2,000  Nu-Kote Holding, Inc.
(a).......................................................
33,250
   2,000  Reynolds & Reynolds Co., Class A
Shares.........................................
106,500
------------------------------------------------------------
------------------
--------------------------

873,625
------------------------------------------------------------
------------------
--------------------------
CONSTRUCTION -- 1.1%
   1,500  Beazer Homes USA, Inc.
(a)......................................................
24,000
   2,000  Foster Wheeler Corp.
 ...........................................................
89,750
   3,000  Granite Construction, Inc.
 .....................................................
69,000
   1,000  Lennar Corp.
 ............................................................
 .......
25,000
   1,000  Oakwood Homes Corp.
 ............................................................
20,625
------------------------------------------------------------
------------------
--------------------------

228,375
------------------------------------------------------------
------------------
--------------------------
CONSUMER DISTRIBUTION -- 7.9%
   4,000  Bed, Bath & Beyond, Inc.
(a)....................................................
107,000
   3,000  Boise Cascade Office Products Corp.
(a).........................................       103,875
   1,250  Chronimed, Inc.
(a).........................................................
 ....        22,969
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       45

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
CONSUMER DISTRIBUTION -- 7.9% (CONTINUED)
   1,000  CompUSA, Inc.
(a).........................................................
 ......   $
34,125
   2,500  Consolidated Stores Corp.
(a)...................................................
91,875
   2,800  Corporate Express, Inc.
(a).....................................................
112,000
   3,000  Eckerd Corp.
(a).........................................................
 .......
67,875
   1,000  Garden Ridge Corp.
(a).........................................................
 .        50,500
   1,500  Gap, Inc.
 ............................................................
 ..........
48,188
   1,500  Just for Feet, Inc.
(a).........................................................
79,313
   2,500  Kroger Co.
(a).........................................................
 .........
98,750
   2,000  Petco Animal Supplies, Inc.
(a).................................................
57,500
   2,000  Richfood Holdings, Inc.
 ........................................................
65,000
   2,000  Ross Stores, Inc.
 ............................................................
 ..        69,500
   4,000  Safeway, Inc. (New)
(a).........................................................
132,000
   4,000  Staples, Inc.
(a).........................................................
 ......
78,000
   2,000  Sunglass Hut International, Inc.
(a)............................................
48,750
   1,000  Tiffany & Co., Inc.
 ............................................................
73,000
   1,000  TJX Cos., Inc.
 ............................................................
 .....
33,750
   1,500  U.S. Office Products Co.
(a)....................................................
63,000
   1,250  Vons Cos., Inc.
(a).........................................................
 ....        46,718
   2,000  Viking Office Products Inc.
(a).................................................
62,750
   2,000  Zale Corp.
(a).........................................................
 .........
33,750
------------------------------------------------------------
------------------
--------------------------

1,580,188
------------------------------------------------------------
------------------
--------------------------
CONSUMER DURABLES -- 0.8%
   4,000  Nautica Enterprises, Inc.
(a)...................................................
115,000
   1,000  Snap-On, Inc.
 ............................................................
 ......
47,375
------------------------------------------------------------
------------------
--------------------------

162,375
------------------------------------------------------------
------------------
--------------------------
CONSUMER NON-DURABLES -- 5.6%
   1,500  Borders Group, Inc.
(a).........................................................
48,375
   1,000  Coca-Cola Enterprises, Inc.
 ....................................................
34,625
   1,500  FILA Holding S.p.A.
ADR.........................................................
129,375
   3,000  First Brands Corp.
 ............................................................
 .        81,000
   1,500  Gadzooks, Inc.
(a).........................................................
 .....
48,375
   2,000  Liz Claiborne, Inc.
 ............................................................
69,250
   2,000  Nike, Inc., Class B
Shares......................................................
205,500
   1,000  Oakley, Inc.
(a).........................................................
 .......
45,500
   1,900  Quiksilver, Inc.
(a).........................................................
 ...        57,000
     800  Rexall Sundown, Inc.
(a)........................................................
21,600
   2,000  St. John Knits, Inc.
 ...........................................................
89,250
   2,750  Tommy Hilfiger Corp.
(a)........................................................
147,469
   1,750  USA Detergents, Inc.
(a)........................................................
69,781
   2,000  Wolverine World Wide, Inc.
 .....................................................
65,000
------------------------------------------------------------
------------------
--------------------------

1,112,100
------------------------------------------------------------
------------------
--------------------------
CONSUMER SERVICES -- 4.7%
   2,000  Apac Teleservices, Inc.
(a).....................................................
72,000
   2,000  Apollo Group, Inc., Class A Shares
(a)..........................................        56,000
   1,500  Career Horizons, Inc.
(a).......................................................
52,500
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       46

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
CONSUMER SERVICES -- 4.7% (CONTINUED)
   1,500  Doubletree Corp.
(a).........................................................
 ...   $    53,250
   3,000  Hospitality Franchise Systems, Inc.
(a).........................................       210,000
   2,000  Meredith Corp.
 ............................................................
 .....
83,500
   2,500  Mirage Resorts, Inc.
(a)........................................................
135,000
   1,500  Promus Hotel Corp.
(a).........................................................
 .        44,438
   3,000  Regal Cinemas, Inc.
(a).........................................................
137,250
   2,000  Sitel Corp.
(a).........................................................
 ........
84,000
------------------------------------------------------------
------------------
--------------------------

927,938
------------------------------------------------------------
------------------
--------------------------
ELECTRONICS -- 1.3%
     500  Cable Design Technologies, Inc.
(a).............................................
16,375
   1,500  Checkpoint Systems, Inc.
(a)....................................................
51,562
   1,000  Harman International Industries, Inc.
 ..........................................        49,250
   3,000  Kent Electronics Corp.
(a)......................................................
93,750
     500  MEMC Electronic Materials, Inc.
 ................................................
19,375
     750  SCI Systems, Inc.
(a).........................................................
 ..        30,469
------------------------------------------------------------
------------------
--------------------------

260,781
------------------------------------------------------------
------------------
--------------------------
ENERGY -- 6.9%
   1,000  Baker Hughes, Inc.
 ............................................................
 .        32,875
   3,431  BJ Services Co.
(a).........................................................
 ....       100,826
   1,500  Camco International Corp.
 ......................................................
50,813
   2,000  Chesapeake Energy Corp.
(a).....................................................
179,750
   1,000  Diamond Offshore Drilling, Inc.
(a).............................................
57,250
     750  Ensco International, Inc.
(a)...................................................
24,375
   5,000  Global Marine, Inc.
(a).........................................................
69,375
   4,000  Input/Output, Inc.
(a).........................................................
 .       129,500
   2,000  Marine Drilling Co., Inc.
(a)...................................................
20,250
   3,000  Pogo Producing Co.
 ............................................................
 .       114,375
   5,000  Pride Petroleum Services, Inc.
(a)..............................................
71,250
   1,000  Primark Corp.
 ............................................................
 ......
32,625
   2,000  Reading & Bates Corp.
New.......................................................
44,250
   4,500  Rowan Cos., Inc.
 ............................................................
 ...        66,375
   3,000  Smith International, Inc.
(a)...................................................
90,375
   3,000  Sonat Offshore Drilling, Inc.
 ..................................................
151,500
   2,500  Tidewater, Inc.
 ............................................................
 ....       109,687
     500  Williams Cos., Inc.
 ............................................................
24,750
------------------------------------------------------------
------------------
--------------------------

1,370,201
------------------------------------------------------------
------------------
--------------------------
FINANCIAL SERVICES -- 6.0%
   2,000  Aames Financial Corp.
 ..........................................................
71,750
   2,000  Bank of Boston Corp.
 ...........................................................
99,000
   1,500  Cullen Frost Bankers, Inc.
 .....................................................
41,625
   2,250  Finova Group, Inc.
 ............................................................
 .       109,687
   1,000  First Bank System, Inc.
 ........................................................
58,000
   1,500  Firstar Corp.
 ............................................................
 ......
69,187
   2,000  Green Tree Financial Corp.
 .....................................................
62,500
   1,500  Imperial Credit Industries, Inc.
(a)............................................
45,375
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       47

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
FINANCIAL SERVICES -- 6.0% (CONTINUED)
   2,500  Money Store, Inc.
 ............................................................
 ..   $    55,313
   1,500  North Fork Bankcorp.
 ...........................................................
39,188
   1,000  Oxford Resources Corp., Class A Shares
(a)......................................        23,250
   2,400  Penncorp Financial Group, Inc.
 .................................................
76,200
   1,250  People's Heritage Financial Group, Inc.
 ........................................        25,469
   1,000  Star Banc Corp.
(a).........................................................
 ....        67,375
   1,500  Student Loan Marketing Association, Inc.
 .......................................       111,000
   1,500  SunAmerica, Inc.
 ............................................................
 ...        84,750
   2,000  TCF Financial Corp.
 ............................................................
66,500
   3,000  Washington Mutual, Inc.
 ........................................................
89,625
------------------------------------------------------------
------------------
--------------------------

1,195,794
------------------------------------------------------------
------------------
--------------------------
HEALTHCARE -- 16.9%
     750  ABR Information Services, Inc.
 .................................................
37,687
   1,500  Access Health, Inc.
 ............................................................
70,875
   1,000  Advanced Technology Labs, Inc.
 .................................................
36,500
   1,000  Biochem Pharmaceuticals, Inc.
(a)...............................................
37,500
     400  Clintrials Research, Inc.
(a)...................................................
16,600
     350  CN Lunar Corp.
(a).........................................................
 .....
12,075
   1,000  Coherent, Inc.
(a).........................................................
 .....
52,000
   1,000  Compdent Corp.
(a).........................................................
 .....
46,500
     750  Curative Technologies, Inc.
(a).................................................
19,687
   2,100  Cycare Systems, Inc.
(a)........................................................
109,463
   2,500  Dura Pharmaceuticals, Inc.
(a)..................................................
140,000
     750  Elan PLC
ADR.........................................................
 ...........
42,843
     750  Genesis Health Ventures, Inc.
(a)...............................................
23,531
   1,000  Genetics Institute, Inc.
(a)....................................................
63,500
   3,500  Guidant Corp.
 ............................................................
 ......
172,375
   1,000  Gulf South Medical Supply, Inc.
(a).............................................
39,000
   8,000  HBO & Co.
 ............................................................
 ..........
542,000
   1,000  Healthcare COMPARE Corp.
(a)....................................................
48,750
   4,500  Health Management Associates, Inc., Class A Shares
(a)..........................        91,125
   2,750  Health Management Systems, Inc.
(a).............................................
87,313
   4,000  Healthsouth Corp.
(a).........................................................
 ..       144,000
   1,500  Hologic, Inc.
(a).........................................................
 ......
66,375
   2,000  HPR, Inc.
(a).........................................................
 ..........
42,500
   1,500  Invacare Corp.
 ............................................................
 .....
35,250
   1,500  Jones Medical Industries, Inc.
 .................................................
49,875
   1,500  Liposome, Inc.
(a).........................................................
 .....
28,125
   1,500  Medaphis Corp.
(a).........................................................
 .....
59,625
   1,500  Medpartners/Mullikin, Inc.
(a)..................................................
31,313
   3,000  Mentor Corp.
 ............................................................
 .......
76,500
   4,000  Minimed, Inc.
(a).........................................................
 ......
119,000
   6,000  Omnicare Group, Inc.
 ...........................................................
159,000
   1,000  Orthodontic Centers of America, Inc.
(a)........................................        26,500
   1,000  Parexel International Corp.
(a).................................................
48,250
   1,500  PhyCor, Inc.
(a).........................................................
 .......
57,000
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       48

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
HEALTHCARE -- 16.9% (CONTINUED)
   3,000  Physician Reliance Network, Inc.
(a)............................................   $
66,750
   3,000  Physician Sales & Service, Inc.
(a).............................................
72,750
     750  Quintiles Transnational Corp.
(a)...............................................
49,313
   4,000  Renal Treatment Centers, Inc.
(a)...............................................
115,000
   1,500  Spine Tech, Inc.
(a).........................................................
 ...        43,500
   1,500  Target Therapeutics, Inc.
(a)...................................................
61,500
   1,500  Tenet Healthcare Corp.
 .........................................................
32,063
   1,500  Total Renal Care Holdings, Inc.
(a).............................................
63,375
   1,000  United Dental Care, Inc.
(a)....................................................
42,250
   3,000  Universal Health Services, Inc., Class B Shares
(a).............................        78,375
   2,000  Veterinary Centers of America, Inc.
(a).........................................        44,750
   1,900  Watson Pharmaceuticals, Inc.
(a)................................................
71,962
------------------------------------------------------------
------------------
--------------------------

3,374,225
------------------------------------------------------------
------------------
--------------------------
INSURANCE -- 2.5%
   1,000  American Bankers Insurance Group, Inc.
 .........................................        43,625
   4,000  American Travelers Corp.
(a)....................................................
92,000
   1,500  CMAC Investment Corp.
 ..........................................................
86,250
   1,000  Conseco, Inc.
 ............................................................
 ......
40,000
   2,000  Exel Ltd.
 ............................................................
 ..........
141,000
   1,500  Old Republic International Corp.
 ...............................................
32,250
   1,000  TIG Holdings, Inc.
 ............................................................
 .        29,000
   1,000  Vesta Insurance Group, Inc.
 ....................................................
33,375
------------------------------------------------------------
------------------
--------------------------

497,500
------------------------------------------------------------
------------------
--------------------------
MEDIA -- 2.8%
   2,300  Clear Channel Communications, Inc.
(a)..........................................       189,462
   2,000  Evergreen Media Corp.
(a).......................................................
85,500
   4,125  Infinity Broadcasting Co., Class A Shares
(a)...................................       123,750
   1,500  Interpublic Group Cos., Inc.
 ...................................................
70,313
   1,000  National Media Corp.
(a)........................................................
17,625
   1,500  Omnicom Group, Inc.
 ............................................................
69,750
------------------------------------------------------------
------------------
--------------------------

556,400
------------------------------------------------------------
------------------
--------------------------
RESTAURANTS -- 0.5%
   2,000  Boston Market, Inc.
(a).........................................................
65,000
   1,000  Outback Steakhouse, Inc.
(a)....................................................
34,484
------------------------------------------------------------
------------------
--------------------------

99,484
------------------------------------------------------------
------------------
--------------------------
TECHNOLOGY -- 24.5%
   1,000  Adaptec, Inc.
(a).........................................................
 ......
47,375
     750  Anchor Gaming
(a).........................................................
 ......
45,188
   1,500  Applix, Inc.
(a).........................................................
 .......
43,125
   8,000  Ascend Communications, Inc.
(a).................................................
450,000
   2,000  Aspect Telecommunications Corp.
(a).............................................
99,000
   2,000  Aspen Technologies, Inc.
(a)....................................................
110,000
   1,500  Astea International, Inc.
(a)...................................................
36,375
   1,000  Atmel Corp.
(a).........................................................
 ........
30,125
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       49

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
TECHNOLOGY -- 24.5% (CONTINUED)
   2,000  Auspex Systems, Inc.
(a)........................................................
$    30,000
   1,500  BMC Industries, Inc.
 ...........................................................
43,125
   1,300  BMC Software, Inc.
(a).........................................................
 .        77,675
   6,750  Cadence Design Systems, Inc.
(a)................................................
227,812
   3,000  Cambridge Technology Partners, Inc.
(a).........................................        91,500
   4,500  Cascade Communications Corp.
(a)................................................
306,000
     400  CBT Group Ltd. Sponsored ADR
(a)................................................
18,500
   3,500  Cisco Systems, Inc.
(a).........................................................
198,187
   1,000  Citrix Systems, Inc.
(a)........................................................
38,000
   1,000  Concord EFS, Inc.
(a).........................................................
 ..        35,500
   3,000  DSP Communications Inc.
(a).....................................................
154,125
   2,000  ECI Telecomm Ltd.
 ............................................................
 ..        46,500
   1,000  GT Interactive Software Corp.
(a)...............................................
16,750
   1,000  IDX Systems Corp.
(a).........................................................
 ..        39,000
   1,000  Inso Corp.
(a).........................................................
 .........
52,375
   2,000  Integrated Systems, Inc.
 .......................................................
80,125
   5,250  McAfee Associates, Inc.
(a).....................................................
257,250
   1,000  Medic Computer Systems, Inc.
(a)................................................
81,125
   2,500  Mylex Corp.
(a).........................................................
 ........
44,375
   3,000  Network General Corp.
(a).......................................................
64,500
   1,500  Newbridge Networks Corp.
(a)....................................................
98,250
   2,250  Oracle Systems Corp.
(a)........................................................
88,734
   5,500  Pairgain Technologies, Inc.
(a).................................................
341,000
   3,000  Parametric Technology Corp.
(a).................................................
130,125
   2,250  Paychex, Inc.
 ............................................................
 ......
108,281
   2,000  Peoplesoft, Inc.
(a).........................................................
 ...       142,500
   1,500  Picturetel Corp.
(a).........................................................
 ...        59,062
   1,000  Project Software & Development Corp.
(a)........................................        46,875
   1,500  Proxim, Inc.
(a).........................................................
 .......
60,375
     500  Remedy Corp.
(a).........................................................
 .......
36,500
   1,500  Security Dynamics Tech I Corp.
(a)..............................................
123,375
   1,500  Shiva Corp.
(a).........................................................
 ........
120,000
   1,500  Structural Dynamics Research, Inc.
(a)..........................................        33,000
   2,000  Sunguard Data Systems, Inc.
(a).................................................
80,250
   3,500  Sun MicroSystems, Inc.
(a)......................................................
206,063
   1,500  Transition Systems, Inc.
(a)....................................................
42,750
   4,000  U.S. Robotics Corp.
(a).........................................................
342,000
   1,000  Viasoft, Inc.
(a).........................................................
 ......
64,625
------------------------------------------------------------
------------------
--------------------------

4,887,377
------------------------------------------------------------
------------------
--------------------------
TRANSPORTATION -- 1.5%
   1,500  America West Airlines, Class B Shares
(a).......................................        33,000
   1,500  Comair Holdings, Inc.
 ..........................................................
40,500
     500  Conrail, Inc.
 ............................................................
 ......
33,188
   2,500  Continental Airlines Corp., Class B Shares
(a)..................................       154,375
   1,000  Fritz Co.
(a).........................................................
 ..........
32,250
------------------------------------------------------------
------------------
--------------------------

293,313
------------------------------------------------------------
------------------
--------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       50

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                           EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
 SHARES                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
UTILITIES -- 2.3%
   1,000  ACC Corp.
 ............................................................
 ..........   $
48,625
     500  Cellular Communications, Inc., Class A Shares
(a)...............................        26,563
   2,500  Cincinnati Bell, Inc.
 ..........................................................
130,312
   3,000  Frontier Corp.
 ............................................................
 .....
91,875
   4,000  LCI International, Inc.
(a).....................................................
125,500
   1,000  Lucent Technologies, Inc.
 ......................................................
37,875
------------------------------------------------------------
------------------
--------------------------

460,750
------------------------------------------------------------
------------------
--------------------------
          TOTAL COMMON STOCKS (Cost --
$12,909,593).......................................
19,004,676
------------------------------------------------------------
------------------
--------------------------
<CAPTION>
  FACE
 AMOUNT                                       SECURITY
VALUE
------------------------------------------------------------
------------------
--------------------------
<S>
<C>
U.S. GOVERNMENT OBLIGATIONS -- 4.6%
          U.S. Treasury Bills:
$160,000    4.500% due 7/11/96
(b)........................................................
159,801
 160,000    4.780% due 7/25/96
(b)........................................................
159,490
 100,000    4.940% due 7/25/96
(b)........................................................
99,128
 510,000    4.750% due 8/1/96
(b).........................................................
507,914
------------------------------------------------------------
------------------
--------------------------
          TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost --
$926,875)............................       926,333
------------------------------------------------------------
------------------
--------------------------
          TOTAL INVESTMENTS -- 100% (Cost --
$13,836,468*)................................   $19,931,009
------------------------------------------------------------
------------------
--------------------------
</TABLE>

(a) Non-income producing security.
(b) Rate represents annualized yield to maturity.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       51

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             TOTAL RETURN PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
COMMON STOCKS -- 70.9%
BROADCAST -- 3.0%
     94,000    Viacom Inc.
(a).........................................................
 ...   $  3,654,250
------------------------------------------------------------
------------------
---------------------------
CHEMICALS -- 2.2%
     61,000    Betz Laboratories Inc.
 ....................................................
2,676,375
------------------------------------------------------------
------------------
---------------------------
CONSUMER CYCLICALS -- 4.5%
     42,000    Eastman Kodak Co.
 .........................................................
3,265,500
     50,000    Weyerhauser Co.
 ...........................................................
2,125,000
------------------------------------------------------------
------------------
---------------------------

5,390,500
------------------------------------------------------------
------------------
---------------------------
ENERGY -- 11.2%
     32,000    Amoco Corp.
(a).........................................................
 ...      2,316,000
     16,000    Atlantic Richfield Co.
(a).................................................
1,896,000
     80,000    Coastal Corp.
 ............................................................
 .      3,340,000
     95,900    Crown Central Petroleum
(a)................................................
1,474,463
    150,000    Oryx Energy Co.
(a)........................................................
2,437,500
     50,000    Phillips Petroleum Co.
 ....................................................
2,093,750
------------------------------------------------------------
------------------
---------------------------

13,557,713
------------------------------------------------------------
------------------
---------------------------
FINANCIAL SERVICES -- 10.9%
     70,000    Bank of New
York........................................................
 ...      3,587,500
     41,000
Citicorp....................................................
 ...............
3,387,625
    150,000    Great Western Financial Corp.
 .............................................      3,581,250
     80,000    H&R Block Inc.
 ............................................................
2,610,000
------------------------------------------------------------
------------------
---------------------------

13,166,375
------------------------------------------------------------
------------------
---------------------------
HEALTHCARE -- 6.6%
     21,000    Bristol Myers Squibb Co.
 ..................................................
1,890,000
     55,000    U.S. Healthcare Inc.
 ......................................................
3,025,000
    130,000    Value Health Inc.
(a)......................................................
3,071,250
------------------------------------------------------------
------------------
---------------------------

7,986,250
------------------------------------------------------------
------------------
---------------------------
INSURANCE -- 2.9%
     30,000    Cigna Corp.
 ............................................................
 ...      3,536,250
------------------------------------------------------------
------------------
---------------------------
IRON/STEEL -- 2.3%
    200,000    Oregon Steel Mills Inc.
 ...................................................
2,750,000
------------------------------------------------------------
------------------
---------------------------
MINING -- 2.3%
    159,000    Homestake Mining Co.
(a)...................................................
2,722,875
------------------------------------------------------------
------------------
---------------------------
REAL ESTATE -- 11.9%
    200,000    Irvine Apartment Communities Inc.
 .........................................      4,025,000
    150,000    Simon Property Group Inc.
 .................................................
3,675,000
    106,000    Spieker Properties Inc.
 ...................................................
2,888,500
    130,000    Tri-Net Corporate Realty Trust Inc.
 .......................................      3,770,000
------------------------------------------------------------
------------------
---------------------------

14,358,500
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       52

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                             TOTAL RETURN PORTFOLIO
<TABLE>
<CAPTION>
  SHARES                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
RETAIL -- 4.6%
     53,000    Sears Roebuck & Co.
 .......................................................   $
2,577,125
    106,000    Toys 'R' Us Inc.
(a).......................................................
3,021,000
------------------------------------------------------------
------------------
---------------------------

5,598,125
------------------------------------------------------------
------------------
---------------------------
TELECOMMUNICATIONS -- 8.5%
    143,000    Comsat Corp.
 ............................................................
 ..      3,718,000
     75,000    GTE Corp.
 ............................................................
 .....
3,356,250
    180,000    Tele-Communications, Inc.
(a)..............................................
3,262,500
------------------------------------------------------------
------------------
---------------------------

10,336,750
------------------------------------------------------------
------------------
---------------------------
               TOTAL COMMON STOCKS (Cost --
$77,717,248)..................................
85,733,963
------------------------------------------------------------
------------------
---------------------------
CONVERTIBLE PREFERRED STOCKS -- 13.0%
     32,000    Catellus Development Corp., Series B,
Exchangeable
7.500%..................      1,768,000
     53,000    Delta Air Lines Inc., Depository Shares,
Series
C..........................      3,339,000
     65,000    K Mart Financing, Exchangeable
7.750%......................................      3,526,250
     60,000    Noram Financing, Exchangeable
6.250%.......................................      3,255,000
     64,000    Rouse Co., Series A, Exchangeable
6.500%...................................      3,888,000
------------------------------------------------------------
------------------
---------------------------
               TOTAL CONVERTIBLE PREFERRED STOCKS (Cost --
$13,953,253)...................     15,776,250
------------------------------------------------------------
------------------
---------------------------
OPTIONS -- 0.0%
     55,000    U.S. Healthcare Inc., Put @ 47, Expires
7/19/96 (Cost --
$49,225)..........         13,750
------------------------------------------------------------
------------------
---------------------------
               TOTAL COMMON STOCKS, CONVERTIBLE PREFERRED
STOCKS AND OPTIONS
               (Cost --
$91,719,726)................................................
 ......
101,523,963
------------------------------------------------------------
------------------
---------------------------
<CAPTION>
   FACE
  AMOUNT                                        SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
REPURCHASE AGREEMENT -- 16.1%
$19,501,000    Citibank, 5.396% due 7/1/96; Proceeds at
maturity --
$19,509,769;
               (Fully collateralized by U.S. Treasury Notes,
6.375% due
5/15/99;
               Market value -- $19,893,089) (Cost --
$19,501,000).........................     19,501,000
------------------------------------------------------------
------------------
---------------------------
               TOTAL INVESTMENTS -- 100% (Cost --
$111,220,726*)..........................   $121,024,963
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       53

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                         INTERNATIONAL EQUITY PORTFOLIO

<TABLE>
<CAPTION>
 SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
STOCKS -- 100.0%
ARGENTINA -- 1.2%
   12,500    Quilmes Industrial
ADR........................................................
$   128,125
   25,000    Quilmes Industrial S.A.
 ......................................................
256,250
------------------------------------------------------------
------------------
---------------------------

384,375
------------------------------------------------------------
------------------
---------------------------
AUSTRALIA -- 2.2%
   66,154    Coca Cola Amatil Ltd.
 ........................................................
735,744
------------------------------------------------------------
------------------
---------------------------
AUSTRIA -- 3.7%
    5,500    Baumax AG
Preferred...................................................
 ........
175,073
    2,200    VAE Eisenbahnsysteme
AG.......................................................
207,417
    2,000    VA Technologie
AG..........................................................
 ...       244,943
    2,500    Wolford
AG..........................................................
 ..........
611,424
------------------------------------------------------------
------------------
---------------------------

1,238,857
------------------------------------------------------------
------------------
---------------------------
BELGIUM -- 3.4%
    7,000    Barco N.V.(a)
 ............................................................
 ....     1,121,609
------------------------------------------------------------
------------------
---------------------------
CHILE -- 1.7%
   15,000    Embotelladora Andina S.A.
ADR.................................................
551,250
------------------------------------------------------------
------------------
---------------------------
DENMARK -- 1.3%
   25,000    Scandinavian Mobility International AS
(a)....................................       426,860
------------------------------------------------------------
------------------
---------------------------
FINLAND -- 1.5%
   14,000    Nokia OY AB, Class A
Shares...................................................
515,770
------------------------------------------------------------
------------------
---------------------------
FRANCE -- 4.2%
      800    Carrefour
Supermarche.................................................
 ........
448,148
    2,248    Castorama Dubois
Investisse..................................................
 .       442,841
    2,000    Ecco S.A.
 ............................................................
 ........
503,079
------------------------------------------------------------
------------------
---------------------------

1,394,068
------------------------------------------------------------
------------------
---------------------------
GERMANY -- 5.3%
   15,000    SGL Carbon
AG..........................................................
 .......
1,763,894
------------------------------------------------------------
------------------
---------------------------
HONG KONG -- 6.6%
   50,000    Guoco Group Ltd.
 ............................................................
 .       238,347
  240,000    Hong Kong & China Gas Co. Ltd.
 ...............................................
382,906
   20,000    Hong Kong & China Gas Warrants, Expire 9/30/97
(a)............................         5,232
   30,000    HSBC Holdings
PLC.........................................................
 ....       453,441
  100,000    Hutchinson Whampoa Ltd.
 ......................................................
629,134
   50,000    Sun Hung Kai Properties Ltd.
 .................................................
505,439
------------------------------------------------------------
------------------
---------------------------

2,214,499
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       54

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                         INTERNATIONAL EQUITY PORTFOLIO

<TABLE>
<CAPTION>
 SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
IRELAND -- 7.2%
   61,544    Bank of
Ireland.....................................................
 ..........   $
418,833
   40,736    CRH
PLC.........................................................
 ..............
409,976
  113,638    Greencore Group
PLC.........................................................
 ..       597,254
  166,666    Independent Newspapers
PLC....................................................
772,123
   25,281    Irish Continental Group
PLC...................................................
230,202
------------------------------------------------------------
------------------
---------------------------

2,428,388
------------------------------------------------------------
------------------
---------------------------
ISRAEL -- 1.3%
   20,000    Gilat Satellite Networks Ltd.
(a).............................................
440,000
------------------------------------------------------------
------------------
---------------------------
ITALY -- 7.1%
   30,000    De Rigo S.p.A. ADR
(a)........................................................
686,250
   10,000    Industrie Natuzzi S.p.A.
ADR..................................................
512,500
    7,000    Luxottica Group S.p.A.
ADR....................................................
513,625
  300,000    Telecom Italia Mobile S.p.A.
 .................................................
672,016
------------------------------------------------------------
------------------
---------------------------

2,384,391
------------------------------------------------------------
------------------
---------------------------
JAPAN -- 8.4%
   15,000    Canon, Inc.
 ............................................................
 ......
311,802
      660    Doutor Coffee Co. Ltd.
 .......................................................
30,688
   40,000    Hitachi Ltd.
 ............................................................
 .....
371,974
   44,000    Itochu Corp.
 ............................................................
 .....
307,280
   28,000    Kajima Corp.
 ............................................................
 .....
288,462
   16,000    Matsushita Electric Industries Co. Ltd.
 ......................................       297,579
   42,000    Mitsubishi Heavy Industries Ltd.
 .............................................       364,918
       66    Mr. Max Corp.
 ............................................................
 ....         1,203
    6,600    Ohmoto Gumi Co. Ltd.
 .........................................................
133,583
    3,000    Shohkoh Fund & Co. Ltd.
 ......................................................
629,074
    4,000    Yagi
Antenna.....................................................
 .............
77,312
------------------------------------------------------------
------------------
---------------------------

2,813,875
------------------------------------------------------------
------------------
---------------------------
MALAYSIA -- 3.1%
  125,000    Renong
Berhad......................................................
 ...........
199,375
   25,000    Renong Berhad-4% ICUL 2001
(a)................................................
9,418
   15,625    Renong Berhad Warrants, Expire 11/21/00
(a)...................................         7,076
   12,500    Sungei Way Holdings Berhad Warrants, Expire
6/29/99
(a).......................        26,049
  112,000    Sungei Way Holdings
Berhad....................................................
525,147
   30,000    Telekom Malaysia
Berhad......................................................
 .       266,902
------------------------------------------------------------
------------------
---------------------------

1,033,967
------------------------------------------------------------
------------------
---------------------------
MEXICO -- 2.0%
   53,550    Gruma S.A.
(a).........................................................
 .......
247,969
   24,000    Kimberly Clark S.A., Series
A.................................................
436,939
------------------------------------------------------------
------------------
---------------------------

684,908
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       55

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                         INTERNATIONAL EQUITY PORTFOLIO

<TABLE>
<CAPTION>
 SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
NETHERLANDS -- 8.9%
   60,568    Getronics N.V.
 ............................................................
 ...   $ 1,341,225
    3,125    Heineken N.V.
 ............................................................
 ....       698,228
   10,000    IHC Caland N.V.
 ............................................................
 ..       492,091
    4,000    Wolters Kluwer N.V.
 ..........................................................
454,364
------------------------------------------------------------
------------------
---------------------------

2,985,908
------------------------------------------------------------
------------------
---------------------------
NORWAY -- 1.9%
   40,000    Tomra Systems
AS..........................................................
 ....       406,366
   40,125    Visual Management
Application.................................................
216,171
------------------------------------------------------------
------------------
---------------------------

622,537
------------------------------------------------------------
------------------
---------------------------
PANAMA -- 1.3%
   10,000    Panamerican Beverages, Inc.
A.................................................
447,500
------------------------------------------------------------
------------------
---------------------------
PHILIPPINES -- 0.9%
1,200,000    SM Prime Holdings Inc.
 .......................................................
311,450
------------------------------------------------------------
------------------
---------------------------
SINGAPORE -- 7.1%
   70,000    Cerebos Pacific Ltd.
 .........................................................
629,826
  100,000    DBS Land Ltd.
 ............................................................
 ....       342,898
   18,000    Fraser & Neave Ltd.
 ..........................................................
186,185
  500,000    QAF Ltd.
 ............................................................
 .........
673,043
   35,000    Sembawang Maritime Ltd.
 ......................................................
94,722
  100,000    Van Der Horst Ltd.
 ...........................................................
467,588
------------------------------------------------------------
------------------
---------------------------

2,394,262
------------------------------------------------------------
------------------
---------------------------
SOUTH AFRICA -- 0.9%
   30,000    Barlow
Limited.....................................................
 ...........
313,474
------------------------------------------------------------
------------------
---------------------------
SWEDEN -- 8.0%
    8,000    Astra AB, Series
A...........................................................
 .       353,241
    2,000    Astra AB, Series
B...........................................................
 .        87,105
   30,000    Autoliv AB
Free........................................................
 .......
913,242
   30,800    Ericsson Tel AB LM, Series B
Free.............................................
663,743
   35,000    Nobel Biocare AB
(a).........................................................
 .       648,764
------------------------------------------------------------
------------------
---------------------------

2,666,095
------------------------------------------------------------
------------------
---------------------------
SWITZERLAND -- 1.7%
      500    Sandoz
AG..........................................................
 ...........
571,623
------------------------------------------------------------
------------------
---------------------------
TAIWAN -- 0.2%
    5,000    Formosa Growth Fund Ltd., Series 1
(a)........................................        70,000
------------------------------------------------------------
------------------
---------------------------
THAILAND -- 2.1%
   90,000    Krung Thai Bank Public Co Ltd.
 ...............................................
411,024
   60,000    Siam Makro Public Co. Ltd.
 ...................................................
307,087
------------------------------------------------------------
------------------
---------------------------

718,111
------------------------------------------------------------
------------------
---------------------------
UNITED KINGDOM -- 6.8%
   40,589    BAA
PLC.........................................................
 ..............
295,156
   20,000    British Biotech PLC
(a).......................................................
762,298
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       56

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30,
1996

                         INTERNATIONAL EQUITY PORTFOLIO

<TABLE>
<CAPTION>
 SHARES                                         SECURITY
VALUE
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
UNITED KINGDOM -- 6.8% (CONTINUED)
   33,333    Independent New
Rights......................................................
 ..   $     7,769
   30,174    MISYS
PLC.........................................................
 ............
364,762
    6,000    Reuters Holdings PLC
ADR......................................................
435,000
   50,000    Serco Group
PLC.........................................................
 ......
423,413
------------------------------------------------------------
------------------
---------------------------

2,288,398
------------------------------------------------------------
------------------
---------------------------
             TOTAL INVESTMENTS -- 100% (Cost --
$25,790,639*)..............................   $33,521,813
------------------------------------------------------------
------------------
---------------------------
</TABLE>

(a) Non-income producing security.
 *  Aggregate cost for Federal income tax purposes is
substantially the same.

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       57

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30,
1996
<TABLE>
<CAPTION>

DIVERSIFIED
                                          MONEY
INTERMEDIATE
STRATEGIC       EQUITY         EQUITY         GROWTH
                                          MARKET      HIGH
GRADE       INCOME
INCOME          INDEX       AND INCOME
                                        PORTFOLIO
PORTFOLIO
PORTFOLIO      PORTFOLIO      PORTFOLIO      PORTFOLIO
------------------------------------------------------------
------------------
-----------------------------------------------
<S>                                     <C>           <C>
<C>
<C>            <C>            <C>
ASSETS:
  Investments -- Cost................   $5,846,315
$14,904,361
$58,205,157    $43,383,244    $12,344,382    $26,539,074
  Repurchase agreements -- Cost......           --
--
--             --             --             --
  Foreign currency -- Cost...........           --
--
449,263             --             --             --
------------------------------------------------------------
------------------
-----------------------------------------------
  Investments, at value..............   $5,846,315
$14,667,862
$59,203,790    $48,646,240    $17,079,382    $36,981,349
  Repurchase agreements..............           --
--
--             --             --             --
  Foreign currency, at value.........           --
--
451,660             --             --             --
  Cash...............................          414
976
574            670            987            325
  Receivable for securities sold.....           --
--
534,890        456,391             --             --
  Dividends and interest
    receivable.......................           39
304,651
1,053,010        346,464         24,708        114,592
  Receivable for open forward foreign
    currency contracts...............           --
--
5             --             --             --
  Receivable from broker.............           --
--
--             --          5,625             --
  Deferred organization costs (Note
    10)..............................        8,937
--
--             --             --             --
  Other assets.......................       38,589
--
--             --             --             --
------------------------------------------------------------
------------------
-----------------------------------------------
  TOTAL ASSETS.......................    5,894,294
14,973,489
61,243,929     49,449,765     17,110,702     37,096,266
------------------------------------------------------------
------------------
-----------------------------------------------
LIABILITIES:
  Investment advisory fees payable...       30,260
10,320
21,763         17,576         42,162         13,898
  Administration fees payable........       12,969
5,160
9,672          7,811         32,509          5,956
  Payable for securities purchased...           --
--
2,086,927        686,875             --             --
  Dividends payable..................       10,603
--
414             --             --             --
  Payable for options written........           --
--
--             --             --             --
  Payable for open forward foreign
    currency contracts...............           --
--
15,590             --             --             --
  Accrued expenses...................           --
7,199
81,523        124,317         12,887         31,079
------------------------------------------------------------
------------------
-----------------------------------------------
  TOTAL LIABILITIES..................       53,832
22,679
2,215,889        836,579         87,558         50,933
------------------------------------------------------------
------------------
-----------------------------------------------
TOTAL NET ASSETS.....................   $5,840,462
$14,950,810
$59,028,040    $48,613,186    $17,023,144    $37,045,333
------------------------------------------------------------
------------------
-----------------------------------------------
NET ASSETS:
  Par value of shares of beneficial
    interest.........................   $    5,840    $
1,450    $
5,719    $     3,895    $       998    $     2,459
  Capital paid in excess of par
    value............................    5,834,622
14,934,874
56,243,037     43,211,582     11,415,794     25,708,223
  Undistributed (overdistributed) net
    investment income................           --
600,672
3,090,700      1,355,414        340,095        331,878
  Accumulated net realized gain
    (loss) on security transactions,
    futures contracts and options....           --
(349,687)
(1,297,109)    (1,220,701)       534,463        560,498
  Net unrealized appreciation
    (depreciation) of investments,
    futures contracts, options and
    foreign currencies...............           --
(236,499)
985,693      5,262,996      4,731,794     10,442,275
------------------------------------------------------------
------------------
-----------------------------------------------
TOTAL NET ASSETS.....................   $5,840,462
$14,950,810
$59,028,040    $48,613,186    $17,023,144    $37,045,333
------------------------------------------------------------
------------------
-----------------------------------------------
SHARES OUTSTANDING...................    5,840,462
1,450,135
5,719,095      3,894,600        997,504      2,458,750
------------------------------------------------------------
------------------
-----------------------------------------------
NET ASSET VALUE, PER SHARE...........        $1.00
$10.31
$10.32         $12.48         $17.07         $15.07
------------------------------------------------------------
------------------
-----------------------------------------------

<CAPTION>


EMERGING         TOTAL
INTERNATIONAL
                                       APPRECIATION
GROWTH
RETURN          EQUITY
                                        PORTFOLIO
PORTFOLIO
PORTFOLIO        PORTFOLIO
------------------------------------------------------------
------------------
---------------------
<S>                                     <C>            <C>
<C>
<C>

ASSETS:
  Investments -- Cost................  $ 69,150,450
$13,836,468    $
91,719,726     $ 25,790,639
  Repurchase agreements -- Cost......    12,935,000
--
19,501,000               --
  Foreign currency -- Cost...........            --
--
--          443,670
------------------------------------------------------------
------------------
---------------------

  Investments, at value..............  $ 88,118,237
$19,931,009
$101,523,963     $ 33,521,813
  Repurchase agreements..............    12,935,000
--
19,501,000               --
  Foreign currency, at value.........            --
--
--          443,620
  Cash...............................           788
40,428
741          581,491
  Receivable for securities sold.....       143,515
61,379
2,512,500               --
  Dividends and interest
    receivable.......................       121,486
4,358
303,619           80,239
  Receivable for open forward foreign
    currency contracts...............            --
--
--               --
  Receivable from broker.............            --
--
--               --
  Deferred organization costs (Note
    10)..............................            --
6,280
7,761            9,386
  Other assets.......................            --
--
--               --
------------------------------------------------------------
------------------
---------------------

  TOTAL ASSETS.......................   101,319,026
20,043,454
123,849,584       34,636,549
------------------------------------------------------------
------------------
---------------------

LIABILITIES:
  Investment advisory fees payable...        45,457
37,861
53,419           23,590
  Administration fees payable........        16,230
10,920
19,425            5,551
  Payable for securities purchased...     1,226,572
23,044
2,500,000          521,367
  Dividends payable..................            --
--
--               --
  Payable for options written........            --
--
152,750               --
  Payable for open forward foreign
    currency contracts...............            --
--
--               87
  Accrued expenses...................       218,273
18,375
62,056           71,589
------------------------------------------------------------
------------------
---------------------

  TOTAL LIABILITIES..................     1,506,532
90,200
2,787,650          622,184
------------------------------------------------------------
------------------
---------------------

TOTAL NET ASSETS.....................  $ 99,812,494
$19,953,254
$121,061,934     $ 34,014,365
------------------------------------------------------------
------------------
---------------------

NET ASSETS:
  Par value of shares of beneficial
    interest.........................  $      6,395    $
1,231    $
8,468     $      2,968
  Capital paid in excess of par
    value............................    66,642,077
12,410,130
103,413,615       29,105,182
  Undistributed (overdistributed) net
    investment income................     2,214,506
(53,218)
3,025,568           29,029
  Accumulated net realized gain
    (loss) on security transactions,
    futures contracts and options....    11,981,729
1,500,570
4,739,648       (2,851,415)
  Net unrealized appreciation
    (depreciation) of investments,
    futures contracts, options and
    foreign currencies...............    18,967,787
6,094,541
9,874,635        7,728,601
------------------------------------------------------------
------------------
---------------------

TOTAL NET ASSETS.....................  $ 99,812,494
$19,953,254
$121,061,934     $ 34,014,365
------------------------------------------------------------
------------------
---------------------

SHARES OUTSTANDING...................     6,394,596
1,230,725
8,467,853        2,967,873
------------------------------------------------------------
------------------
---------------------

NET ASSET VALUE, PER SHARE...........        $15.61
$16.21
$14.30           $11.46
------------------------------------------------------------
------------------
---------------------

</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       58


<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 STATEMENTS OF OPERATIONS (UNAUDITED)     FOR THE SIX MONTHS
ENDED JUNE 30,
1996
<TABLE>
<CAPTION>

DIVERSIFIED
                                                  MONEY
INTERMEDIATE
STRATEGIC       EQUITY         EQUITY        GROWTH
                                                  MARKET
HIGH GRADE
INCOME        INCOME         INDEX       AND INCOME
                                                 PORTFOLIO
PORTFOLIO
PORTFOLIO      PORTFOLIO     PORTFOLIO     PORTFOLIO
------------------------------------------------------------
------------------
--------------------------------------------------
<S>                                              <C>
<C>           <C>
<C>            <C>           <C>
INVESTMENT INCOME:
  Interest....................................   $163,313
$ 561,550
$2,203,958    $   407,424    $   28,679    $  362,958
  Dividends...................................         --
--
97,605        897,313       170,966        97,943
  Less: Foreign withholding tax...............         --
--
(4,092)          (952)       (1,360)       (1,403)
------------------------------------------------------------
------------------
--------------------------------------------------
  TOTAL INVESTMENT INCOME.....................    163,313
561,550
2,297,471      1,303,785       198,285       459,498
------------------------------------------------------------
------------------
--------------------------------------------------
EXPENSES:
  Investment advisory fees (Note 3)...........      9,020
30,960
133,263        110,940        32,588        81,677
  Administration fees (Note 3)................      6,014
15,480
59,227         49,307        16,294        36,301
  Shareholder and system servicing fees.......      4,000
2,431
3,736          6,000         6,000         5,966
  Audit and legal.............................      7,500
7,393
9,138          9,000         8,000         9,476
  Shareholder communications..................      4,000
6,809
6,495          5,000         7,500         5,966
  Custody.....................................      2,937
525
31,610          1,500        13,500         7,740
  Trustees' fees..............................        700
1,508
4,310          1,500         1,800         1,740
  Amortization of deferred organization
    costs.....................................      2,913
2,890
3,090          3,090         2,954         2,965
  Pricing service fees........................         --
2,100
1,436          1,500            --           200
  Registration fees...........................         --
--
2,874             --            --            --
  Other.......................................        500
500
11,093         34,825           739        28,310
------------------------------------------------------------
------------------
--------------------------------------------------
  TOTAL EXPENSES..............................     37,584
70,596
266,272        222,662        89,375       180,341
  Less: Investment advisory and administration
        fee waiver (Note 3)...................    (15,032)
(4,037)
--             --            --            --
       Custody earnings credit (Note 1).......         --
--
--             --            --            --
------------------------------------------------------------
------------------
--------------------------------------------------
  NET EXPENSES................................     22,552
66,559
266,272        222,662        89,375       180,341
------------------------------------------------------------
------------------
--------------------------------------------------
NET INVESTMENT INCOME (LOSS)..................    140,761
494,991
2,031,199      1,081,123       108,910       279,157
------------------------------------------------------------
------------------
--------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
  INVESTMENTS, FUTURES CONTRACTS, OPTIONS AND
FOREIGN CURRENCIES (NOTES 4, 5, 6 AND 7):
  Realized Gain (Loss) From:
    Security transactions (excluding
      short-term securities)..................         --
(62,063)
311,392        866,643        84,419       562,063
    Futures contracts.........................         --
--
--             --        73,340            --
    Options written...........................         --
--
--             --            --            --
    Foreign currency transactions.............         --
--
267,560             --            --            --
------------------------------------------------------------
------------------
--------------------------------------------------
  NET REALIZED GAIN (LOSS)....................         --
(62,063)
578,952        866,643       157,759       562,063
------------------------------------------------------------
------------------
--------------------------------------------------
  Change in Net Unrealized Appreciation
  (Depreciation) of Investments, Futures
  Contracts, Options and Foreign Currencies:
    Beginning of period.......................         --
636,929
1,763,361      6,772,257     3,530,713     7,922,235
    End of period.............................         --
(236,499)
985,693      5,262,996     4,731,794    10,442,275
------------------------------------------------------------
------------------
--------------------------------------------------
  INCREASE (DECREASE) IN NET UNREALIZED
    APPRECIATION..............................         --
(873,428)
(777,668)    (1,509,261)    1,201,081     2,520,040
------------------------------------------------------------
------------------
--------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES
  CONTRACTS, OPTIONS AND FOREIGN CURRENCIES...         --
(935,491)
(198,716)      (642,618)    1,358,840     3,082,103
------------------------------------------------------------
------------------
--------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
  OPERATIONS..................................   $140,761
$(440,500)
$1,832,483    $   438,505    $1,467,750    $3,361,260
------------------------------------------------------------
------------------
--------------------------------------------------

<CAPTION>


EMERGING
TOTAL        INTERNATIONAL
                                                APPRECIATION
GROWTH
RETURN          EQUITY
                                                 PORTFOLIO
PORTFOLIO
PORTFOLIO        PORTFOLIO
------------------------------------------------------------
------------------
-------------------------------
<S>                                              <C>
<C>
<C>             <C>

INVESTMENT INCOME:
  Interest....................................   $  263,368
$    22,029
$    565,685     $    18,602
  Dividends...................................      929,193
38,155
1,298,546         258,486
  Less: Foreign withholding tax...............       (8,248)
(356)
--         (25,709)
------------------------------------------------------------
------------------
-------------------------------

  TOTAL INVESTMENT INCOME.....................    1,184,313
59,828
1,864,231         251,379
------------------------------------------------------------
------------------
-------------------------------

EXPENSES:
  Investment advisory fees (Note 3)...........      267,665
69,811
276,133         136,368
  Administration fees (Note 3)................       97,333
18,616
100,286          32,087
  Shareholder and system servicing fees.......        6,000
5,469
6,215           2,727
  Audit and legal.............................        9,000
8,557
8,205           6,336
  Shareholder communications..................        6,000
7,072
7,500           4,196
  Custody.....................................        3,000
8,951
2,983          24,120
  Trustees' fees..............................        2,000
1,642
5,967           1,972
  Amortization of deferred organization
    costs.....................................        3,533
1,249
1,618           1,608
  Pricing service fees........................           --
--
--           2,937
  Registration fees...........................           --
--
11,139             420
  Other.......................................       32,434
--
11,576           1,749
------------------------------------------------------------
------------------
-------------------------------

  TOTAL EXPENSES..............................      426,965
121,367
431,622         214,520
  Less: Investment advisory and administration
        fee waiver (Note 3)...................           --
(8,321)
--              --
       Custody earnings credit (Note 1).......           --
--
--          (5,239)
------------------------------------------------------------
------------------
-------------------------------

  NET EXPENSES................................      426,965
113,046
431,622         209,281
------------------------------------------------------------
------------------
-------------------------------

NET INVESTMENT INCOME (LOSS)..................      757,348
(53,218)
1,432,609          42,098
------------------------------------------------------------
------------------
-------------------------------

REALIZED AND UNREALIZED GAIN (LOSS) ON
  INVESTMENTS, FUTURES CONTRACTS, OPTIONS AND
FOREIGN CURRENCIES (NOTES 4, 5, 6 AND 7):
  Realized Gain (Loss) From:
    Security transactions (excluding
      short-term securities)..................    5,233,148
1,054,757
3,792,901        (335,796)
    Futures contracts.........................           --
--
--              --
    Options written...........................           --
--
(31,299)             --
    Foreign currency transactions.............           --
--
--          (2,052)
------------------------------------------------------------
------------------
-------------------------------

  NET REALIZED GAIN (LOSS)....................    5,233,148
1,054,757
3,761,602        (337,848)
------------------------------------------------------------
------------------
-------------------------------

  Change in Net Unrealized Appreciation
  (Depreciation) of Investments, Futures
  Contracts, Options and Foreign Currencies:
    Beginning of period.......................   17,032,486
4,015,304
4,217,824       3,059,968
    End of period.............................   18,967,787
6,094,541
9,874,635       7,728,601
------------------------------------------------------------
------------------
-------------------------------

  INCREASE (DECREASE) IN NET UNREALIZED
    APPRECIATION..............................    1,935,301
2,079,237
5,656,811       4,668,633
------------------------------------------------------------
------------------
-------------------------------

NET GAIN (LOSS) ON INVESTMENTS, FUTURES
  CONTRACTS, OPTIONS AND FOREIGN CURRENCIES...    7,168,449
3,133,994
9,418,413       4,330,785
------------------------------------------------------------
------------------
-------------------------------

INCREASE (DECREASE) IN NET ASSETS FROM
  OPERATIONS..................................   $7,925,797
$ 3,080,776
$ 10,851,022     $ 4,372,883
------------------------------------------------------------
------------------
-------------------------------

</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       59

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)   FOR THE
SIX MONTHS ENDED
JUNE

30,
1996
<TABLE>
<CAPTION>

DIVERSIFIED
                                           MONEY
INTERMEDIATE
STRATEGIC       EQUITY         EQUITY         GROWTH
                                          MARKET       HIGH
GRADE       INCOME
INCOME          INDEX       AND INCOME
                                         PORTFOLIO
PORTFOLIO
PORTFOLIO      PORTFOLIO      PORTFOLIO      PORTFOLIO
------------------------------------------------------------
------------------
------------------------------------------------
<S>                                     <C>            <C>
<C>
<C>            <C>            <C>
OPERATIONS:
  Net investment income (loss).......   $   140,761    $
494,991    $
2,031,199    $ 1,081,123    $   108,910    $   279,157
  Net realized gain (loss)...........            --
(62,063)
578,952        866,643        157,759        562,063
  Increase (decrease) in net
    unrealized appreciation..........            --
(873,428)
(777,668)    (1,509,261)     1,201,081      2,520,040
------------------------------------------------------------
------------------
------------------------------------------------
  INCREASE (DECREASE) IN NET ASSETS
    FROM OPERATIONS..................       140,761
(440,500)
1,832,483        438,505      1,467,750      3,361,260
------------------------------------------------------------
------------------
------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
  (NOTE 2):
  Net investment income..............      (140,761)
--
--             --             --             --
------------------------------------------------------------
------------------
------------------------------------------------
  DECREASE IN NET ASSETS FROM
    DISTRIBUTIONS TO SHAREHOLDERS....      (140,761)
--
--             --             --             --
------------------------------------------------------------
------------------
------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 10):
  Net proceeds from sale of shares...     2,337,078
713,442
1,439,852        176,163      1,332,306        676,330
  Net asset value of shares issued
    for reinvestment of dividends....       146,637
--
--             --             --             --
  Cost of shares reacquired..........    (2,296,523)
(1,474,553)
(3,559,832)    (4,445,750)    (1,007,131)    (2,150,443)
------------------------------------------------------------
------------------
------------------------------------------------
  INCREASE (DECREASE) IN NET ASSETS
    FROM FUND SHARE TRANSACTIONS.....       187,192
(761,111)
(2,119,980)    (4,269,587)       325,175     (1,474,113)
------------------------------------------------------------
------------------
------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS....       187,192
(1,201,611)
(287,497)    (3,831,082)     1,792,925      1,887,147
NET ASSETS:
  Beginning of period................     5,653,270
16,152,421
59,315,537     52,444,268     15,230,219     35,158,186
------------------------------------------------------------
------------------
------------------------------------------------
  END OF PERIOD*.....................   $ 5,840,462
$14,950,810
$59,028,040    $48,613,186    $17,023,144    $37,045,333
------------------------------------------------------------
------------------
------------------------------------------------
* Includes undistributed
  (overdistributed) net investment
  income of: ........................            --
$600,672
$3,090,700     $1,355,414       $340,095       $331,878
------------------------------------------------------------
------------------
------------------------------------------------

<CAPTION>


EMERGING         TOTAL
INTERNATIONAL
                                       APPRECIATION
GROWTH          RETURN
EQUITY
                                        PORTFOLIO
PORTFOLIO
PORTFOLIO        PORTFOLIO
------------------------------------------------------------
------------------
---------------------
<S>                                     <C>           <C>
<C>
<C>

OPERATIONS:
  Net investment income (loss).......  $   757,348    $
(53,218)   $
1,432,609     $     42,098
  Net realized gain (loss)...........    5,233,148
1,054,757
3,761,602         (337,848)
  Increase (decrease) in net
    unrealized appreciation..........    1,935,301
2,079,237
5,656,811        4,668,633
------------------------------------------------------------
------------------
---------------------

  INCREASE (DECREASE) IN NET ASSETS
    FROM OPERATIONS..................    7,925,797
3,080,776
10,851,022        4,372,883
------------------------------------------------------------
------------------
---------------------

DISTRIBUTIONS TO SHAREHOLDERS FROM
  (NOTE 2):
  Net investment income..............           --
--
--               --
------------------------------------------------------------
------------------
---------------------

  DECREASE IN NET ASSETS FROM
    DISTRIBUTIONS TO SHAREHOLDERS....           --
--
--               --
------------------------------------------------------------
------------------
---------------------

FUND SHARE TRANSACTIONS (NOTE 10):
  Net proceeds from sale of shares...    2,005,997
1,165,749
33,903,542        2,314,452
  Net asset value of shares issued
    for reinvestment of dividends....           --
--
--               --
  Cost of shares reacquired..........   (4,611,128)
(1,756,206)
(1,735,602)      (1,651,557)
------------------------------------------------------------
------------------
---------------------

  INCREASE (DECREASE) IN NET ASSETS
    FROM FUND SHARE TRANSACTIONS.....   (2,605,131)
(590,457)
32,167,940          662,895
------------------------------------------------------------
------------------
---------------------

INCREASE (DECREASE) IN NET ASSETS....    5,320,666
2,490,319
43,018,962        5,035,778
NET ASSETS:
  Beginning of period................   94,491,828
17,462,935
78,042,972       28,978,587
------------------------------------------------------------
------------------
---------------------

  END OF PERIOD*.....................  $99,812,494
$19,953,254
$121,061,934     $ 34,014,365
------------------------------------------------------------
------------------
---------------------

* Includes undistributed
  (overdistributed) net investment
  income of: ........................   $2,214,506
$(53,218)
$3,025,568          $29,029
------------------------------------------------------------
------------------
---------------------

</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       60


<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 STATEMENTS OF CHANGES IN NET ASSETS        FOR THE YEAR
ENDED DECEMBER 31,
1995
<TABLE>
<CAPTION>

DIVERSIFIED
                                            MONEY
INTERMEDIATE
STRATEGIC       EQUITY         EQUITY         GROWTH
                                           MARKET       HIGH
GRADE
INCOME         INCOME          INDEX       AND INCOME
                                          PORTFOLIO
PORTFOLIO
PORTFOLIO      PORTFOLIO      PORTFOLIO      PORTFOLIO
------------------------------------------------------------
------------------
-------------------------------------------------
<S>                                      <C>            <C>
<C>
<C>            <C>            <C>
OPERATIONS:
  Net investment income (loss)........   $   318,978    $
1,012,045    $
4,580,033    $ 2,391,282    $   231,257    $   679,667
  Net realized gain (loss)............            --
137,970
(863,120)      (457,862)       432,091        421,958
  Increase in net unrealized
    appreciation......................            --
1,345,439
4,818,775     11,689,689      3,093,598      7,510,283
------------------------------------------------------------
------------------
-------------------------------------------------
  INCREASE IN NET ASSETS FROM
    OPERATIONS........................       318,978
2,495,454
8,535,688     13,623,109      3,756,946      8,611,908
------------------------------------------------------------
------------------
-------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
  (NOTE 2):
  Net investment income...............      (318,978)
(1,080,907)
(3,628,366)    (2,744,365)      (200,991)      (701,745)
  Net realized gains..................            --
--
--             --        (12,638)            --
------------------------------------------------------------
------------------
-------------------------------------------------
  DECREASE IN NET ASSETS FROM
    DISTRIBUTIONS TO SHAREHOLDERS.....      (318,978)
(1,080,907)
(3,628,366)    (2,744,365)      (213,629)      (701,745)
------------------------------------------------------------
------------------
-------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 10):
  Net proceeds from sale of shares....     4,160,876
2,606,497
2,483,761      1,968,215      3,063,195      1,543,081
  Net asset value of shares issued for
    reinvestment of dividends.........       302,497
1,080,907
3,327,194      2,744,365        213,629        701,745
  Cost of shares reacquired...........    (5,951,049)
(2,229,692)
(6,662,995)    (7,564,452)    (1,815,334)    (4,621,473)
------------------------------------------------------------
------------------
-------------------------------------------------
  INCREASE (DECREASE) IN NET ASSETS
    FROM FUND SHARE TRANSACTIONS......    (1,487,676)
1,457,712
(852,040)    (2,851,872)     1,461,490     (2,376,647)
------------------------------------------------------------
------------------
-------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS.....    (1,487,676)
2,872,259
4,055,282      8,026,872      5,004,807      5,533,516
NET ASSETS:
  Beginning of year...................     7,140,946
13,280,162
55,260,255     44,417,396     10,225,412     29,624,670
------------------------------------------------------------
------------------
-------------------------------------------------
  END OF YEAR*........................   $ 5,653,270
$16,152,421
$59,315,537    $52,444,268    $15,230,219    $35,158,186
------------------------------------------------------------
------------------
-------------------------------------------------
* Includes undistributed
  (overdistributed)
  net investment income of: ..........            --
$105,681
$791,941       $274,291       $231,185        $52,721
------------------------------------------------------------
------------------
-------------------------------------------------

<CAPTION>


EMERGING         TOTAL
INTERNATIONAL
                                        APPRECIATION
GROWTH         RETURN
EQUITY
                                         PORTFOLIO
PORTFOLIO
PORTFOLIO       PORTFOLIO
------------------------------------------------------------
------------------
---------------------
<S>                                      <C>           <C>
<C>
<C>

OPERATIONS:
  Net investment income (loss)........  $ 1,457,778    $
(34,870)   $
1,708,845     $     62,287
  Net realized gain (loss)............    6,749,135
1,846,715
2,235,356       (2,167,638)
  Increase in net unrealized
    appreciation......................   14,002,209
3,232,511
4,978,702        4,469,756
------------------------------------------------------------
------------------
---------------------

  INCREASE IN NET ASSETS FROM
    OPERATIONS........................   22,209,122
5,044,356
8,922,903        2,364,405
------------------------------------------------------------
------------------
---------------------

DISTRIBUTIONS TO SHAREHOLDERS FROM
  (NOTE 2):
  Net investment income...............   (1,410,859)
--
(1,506,614)        (110,647)
  Net realized gains..................   (1,392,571)
--
(686,521)              --
------------------------------------------------------------
------------------
---------------------

  DECREASE IN NET ASSETS FROM
    DISTRIBUTIONS TO SHAREHOLDERS.....   (2,803,430)
--
(2,193,135)        (110,647)
------------------------------------------------------------
------------------
---------------------

FUND SHARE TRANSACTIONS (NOTE 10):
  Net proceeds from sale of shares....    2,790,750
2,521,682
48,877,204        2,702,681
  Net asset value of shares issued for
    reinvestment of dividends.........    2,803,430
--
2,193,135          110,647
  Cost of shares reacquired...........  (11,330,660)
(1,642,161)
(2,953,026)      (4,501,305)
------------------------------------------------------------
------------------
---------------------

  INCREASE (DECREASE) IN NET ASSETS
    FROM FUND SHARE TRANSACTIONS......   (5,736,480)
879,521
48,117,313       (1,687,977)
------------------------------------------------------------
------------------
---------------------

INCREASE (DECREASE) IN NET ASSETS.....   13,669,212
5,923,877
54,847,081          565,781
NET ASSETS:
  Beginning of year...................   80,822,616
11,539,058
23,195,891       28,412,806
------------------------------------------------------------
------------------
---------------------

  END OF YEAR*........................  $94,491,828
$17,462,935
$78,042,972     $ 28,978,587
------------------------------------------------------------
------------------
---------------------

* Includes undistributed
  (overdistributed)
  net investment income of: ..........   $1,457,158
--
$978,046         $(11,017)
------------------------------------------------------------
------------------
---------------------

</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS.

                                       61


<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

     1.  SIGNIFICANT ACCOUNTING POLICIES

     Smith Barney Series Fund ("Fund"), a Massachusetts
business trust, is
registered under the Investment Company Act of 1940, as
amended, as a
diversified, open-end investment company. The Fund offers
ten managed
investment
portfolios ("Portfolios"): Money Market Portfolio,
Intermediate High Grade
Portfolio, Diversified Strategic Income Portfolio, Equity
Income Portfolio,
Equity Index Portfolio, Growth & Income Portfolio,
Appreciation Portfolio,
Emerging Growth Portfolio, Total Return Portfolio and
International Equity
Portfolio. Shares of the Fund can be acquired through
investing in an
individual
flexible premium deferred combination fixed and variable
annuity contract or a
certificate evidencing interest in a master group flexible
premium deferred
annuity offered by certain insurance companies.

     The significant accounting policies consistently
followed by the Fund
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
or, if there were no sales during the day, at current quoted
bid price;
securities primarily traded on foreign exchanges are
generally valued at the
preceding closing values of such securities on their
respective exchanges,
except that when a significant occurrence subsequent to the
time a value was
so
established is likely to have significantly changed the
value then the fair
value of those securities will be determined by
consideration of other factors
by or under the direction of the Board of Trustees or its
delegates;
over-the-counter securities are valued on the basis of the
bid price at the
close of business on each day; U.S. Government and Agency
obligations are
valued
at the average between the bid and the ask prices;
securities that have a
maturity of more than 60 days are valued at prices based on
market quotations
for securities of similar type, yield and maturity; (c)
short-term securities
maturing within 60 days are valued at cost plus accreted
discount, or minus
amortized premium, which approximates market value; (d)
dividend income is
recorded on the ex-dividend date except that certain
dividends from foreign
securities are recorded as soon as the fund is informed of
the ex-dividend
date
and interest income is recorded on the accrual basis; (e)
gains or losses on
the
sale of securities are calculated by using the specific
identification method;
(f) direct expenses are charged to each portfolio; (g)
dividends and
distributions to shareholders are recorded by the Fund on
the ex-dividend
date;
(h) foreign currencies (and receivables and payables for
unsettled foreign
securities transactions) are translated into U.S. dollars
based on the rate of
exchange of such currencies against U.S. dollars on the date
of valuation; (i)
the accounting records of the Fund 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 and expense
amounts recorded and collected or paid are adjusted when
reported by the
custodian bank; (j) each Portfolio intends 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
tax; (k) 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 December 31, 1995, reclassifications were
made to the Total
Return Portfolio's capital accounts to reflect permanent
book/tax differences
and income and gains available for distributions under
income tax regulations.
In addition, an undistributed net investment loss amounting
to $34,870 has
been
reclassified to paid-in capital for the Emerging Growth
Portfolio. Net
investment income, net realized gains and net assets were
not affected by this
change; 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.

     In addition, the Fund may from time to time enter into
options and/or
futures contracts in order to hedge market risk.

     The International Equity Portfolio has an arrangement
with its custodian,
Morgan Guaranty Trust Company of New York, where it earns a
custody credit on
the available cash balance. This credit offsets custody fees
which may be
charged to the Portfolio during the current year. For the
six months ended
June
30, 1996, the custody credit totalled $5,239 for the
International Equity
Portfolio.

     In addition, certain 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.

                                       62

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     2.  DIVIDENDS

     Effective January 17, 1996, the Fund's Board of
Trustees changed the
dividend policy for all portfolios, except the Money Market
Portfolio, to
declare and distribute dividends from net investment income
annually, if any.
The Money Market Portfolio will continue to distribute
dividends from net
investment income monthly, if any. Any net realized capital
gains are declared
and distributed annually, if any.

     3.  INVESTMENT ADVISORY AGREEMENT, ADMINISTRATION
AGREEMENT AND OTHER
         TRANSACTIONS

     The Fund on behalf of the Money Market, Intermediate
High Grade,
Diversified Strategic Income, Equity Income, Growth &
Income, Appreciation,
Total Return and International Equity Portfolios has entered
into an
investment
advisory agreement (the "Advisory Agreement") with Smith
Barney Mutual Funds
Management Inc. ("SBMFM"). SBMFM is a wholly-owned
subsidiary of Smith Barney
Holdings Inc. ("SBH"), which in turn is a wholly-owned
subsidiary of Travelers
Group Inc. ("Travelers"). Under the Advisory Agreement, the
Money Market,
Intermediate High Grade, Diversified Strategic Income,
Equity Income, Growth &
Income, Appreciation, Total Return and International Equity
Portfolios each
pay
an investment advisory fee at the annual rates of 0.30%,
0.40%, 0.45%, 0.45%,
0.45%, 0.55%, 0.55% and 0.85%, respectively, of the value of
their average
daily
net assets. This fee is calculated daily and paid monthly.

     The Fund on behalf of the Equity Index Portfolio has
entered into an
investment advisory agreement with Travelers Investment
Management Company
("TIMCO"), a wholly-owned subsidiary of Travelers. Under the
investment
advisory
agreement, the Equity Index Portfolio pays an investment
advisory fee at the
annual rate of 0.40% of the value of its average daily net
assets. This fee is
calculated daily and paid monthly.

     The Fund on behalf of the Emerging Growth Portfolio has
entered into an
investment advisory agreement with Van Kampen American
Capital Asset
Management,
Inc. Under the investment advisory agreement, the Emerging
Growth Portfolio
pays
an investment advisory fee at the annual rate of 0.75% of
the value of its
average daily net assets. This fee is calculated daily and
paid monthly.

     Smith Barney Global Capital Management, Inc. ("SBGCM")
serves as
sub-investment adviser to the Diversified Strategic Income
Portfolio and is
paid
a monthly fee by SBMFM at an annual rate of 0.15% of the
Portfolio's average
daily net assets. The Diversified Strategic Income Portfolio
does not make any
direct payments to SBGCM.

     The Fund, on behalf of all the Portfolios, has entered
into an
administration agreement with SBMFM. Under the agreement,
each Portfolio pays
an
administrative fee at the annual rate of 0.20% of the value
of the average
daily
net assets. These fees are calculated daily and paid
monthly.

     By mutual agreement of the parties involved, in the
event the aggregate
expenses of a Portfolio (exclusive of interest, taxes,
brokerage expenses and
extraordinary expenses) exceed an agreed upon limitation,
the relevant
investment adviser, SBGCM, SBMFM and transfer agent will, as
appropriate,
reduce
their fees by one half the excess expenses in the proportion
that their
respective fees bear to the aggregate of such fees paid by
the Portfolio. IDS
Life Insurance Company ("IDS Life"), one of the insurance
companies offering
variable annuity and variable life insurance through which
investments can be
made in the Fund, will bear the remaining half of such
excess expenses.

     For the six months ended June 30, 1996, the investment
adviser and
administrator waived fees as follows:
<TABLE>
<CAPTION>

TOTAL
INVESTMENT
                       PORTFOLIO
FEE WAIVERS
ADVISER       ADMINISTRATOR
------------------------------------------------------------
------------------
-----------------------------
<S>
<C>
<C>              <C>
Money Market............................................
$15,032
$9,019          $ 6,013
Intermediate High Grade.................................
4,037
2,705            1,332
Emerging Growth.........................................
8,261
5,535            2,726
</TABLE>

------------------------------------------------------------
------------------
--

     For the six months ended June 30, 1996, Smith Barney
received brokerage
commissions of $60,849.

     No officer, Director or employee of Smith Barney or its
affiliates
receives
any compensation from the Fund for serving as a Trustee or
officer of the
Fund.

                                       63

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     4.  INVESTMENTS

     The aggregate costs of purchases and proceeds from
sales of investments
(including maturities, but excluding short-term securities),
during the six
months ended June 30, 1996 were as follows:

<TABLE>
<CAPTION>
                                 PORTFOLIO
PURCHASES        SALES
------------------------------------------------------------
------------------
---------------------------
<S>
<C>            <C>
Intermediate High
Grade.....................................................
$ 9,366,349    $10,040,630
Diversified Strategic
Income................................................
21,569,386     21,533,861
Equity
Income......................................................
 .........
7,466,705      7,696,435
Equity
Index.......................................................
 .........
711,942        187,958
Growth and
Income......................................................
 .....
1,384,007      1,480,519
Appreciation................................................
 ................
21,231,250     26,449,042
Emerging
Growth......................................................
 .......
7,641,137      8,390,970
Total
Return......................................................
 ..........
78,791,857     38,808,141
International
Equity......................................................
 ..
7,630,170      6,640,874
------------------------------------------------------------
------------------
---------------------------
</TABLE>

     At June 30, 1996, the aggregate gross unrealized
appreciation and
depreciation of investments for Federal income tax purposes
were approximately
as follows:

<TABLE>
<CAPTION>

NET UNREALIZED

APPRECIATION
                         PORTFOLIO
APPRECIATION
DEPRECIATION    (DEPRECIATION)
------------------------------------------------------------
------------------
------------------------------
<S>
<C>
<C>             <C>
Intermediate High Grade....................................
$    57,297
$  (293,796)    $    (236,499)
Diversified Strategic Income...............................
1,552,338
(553,705)          998,633
Equity Income..............................................
5,832,890
(569,894)        5,262,996
Equity Index...............................................
4,899,097
(164,097)        4,735,000
Growth and Income..........................................
10,592,182
(149,907)       10,442,275
Appreciation...............................................
19,757,970
(790,183)       18,967,787
Emerging Growth............................................
6,319,493
(224,952)        6,094,541
Total Return...............................................
10,388,115
(583,878)        9,804,237
International Equity.......................................
8,806,151
(1,074,977)        7,731,174
------------------------------------------------------------
------------------
------------------------------
</TABLE>

     5.  FUTURES CONTRACTS

     Initial margin deposits made upon entering into futures
contracts are
recognized as assets. The initial margin is segregated by
the custodian as is
noted in the schedule of investments. 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
made or received 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 Fund records a realized gain or loss
equal to the
difference between the proceeds from (or cost of) the
closing transaction and
the Fund's basis in the contract. The Fund enters into such
contracts to hedge
a
portion of its portfolio. The Fund bears the market risk
that arises from
changes in the value of the financial instruments and
securities indices
(futures contracts) and the credit risk should a
counterparty fail to perform
under such contracts.

     At June 30, 1996, the Equity Index Portfolio purchased
three financial
futures contracts on the Standard & Poor's 500 Index
expiring in September
1996.
The basic value of such contracts was $1,018,406. The market
value of such
contracts on June 30, 1996 was $1,015,200, thereby resulting
in an unrealized
loss of $3,206.

                                       64

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     6.  OPTION CONTRACTS

     Upon the purchase of a put option or a call option by
the Portfolio, the
premium paid is recorded as an investment, the value of
which is
marked-to-market daily. When a purchased option expires, the
Portfolio will
realize a loss in the amount of the cost of the option. When
the Portfolio
enters into a closing sales transaction, the Portfolio will
realize a gain or
loss depending on whether the sales proceeds from the
closing sales
transaction
are greater or less than the cost of the option. When the
Portfolio exercises
a
put option, it 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 Portfolio exercises a call option,
the cost of the
security which the Portfolio purchases upon exercise will be
increased by the
premium originally paid.

     When a Portfolio writes a call option or a put option,
an amount equal to
the premium received by the Portfolio is recorded as a
liability, the value of
which is marked-to-market daily. When a written option
expires, the Portfolio
realizes a gain equal to the amount of the premium received.
When the
Portfolio
enters into a closing purchase transaction, the Portfolio
realizes a gain (or
loss if the cost of the closing purchase transaction exceeds
the premium
received when the option was sold) without regard to any
unrealized gain or
loss
on the underlying security, and the liability related to
such option is
eliminated. When a call option is exercised, the Portfolio
realizes a gain or
loss from the sale of the underlying security and the
proceeds from such sale
are increased 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 Portfolio 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 Fund enters
into options for hedging purposes. The risk in writing a
call option is that
the
Fund gives 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 Fund is exposed to the risk of loss if the
market price of the
underlying security declines.

     Option activity for the Total Return Portfolio for the
six months ended
June 30, 1996 were as follows:
<TABLE>
<CAPTION>

NUMBER OF

PREMIUMS
CONTRACTS
------------------------------------------------------------
------------------
-----------------
<S>
<C>
<C>
Written options outstanding at December 31,
1995.................. $     --
--
Written options opened during the
period..........................  912,152
6,903
Options cancelled in closing purchase
transactions................ (311,462 )
(1,965)
Options exercised during the
period............................... (213,976 )
(1,898)
Options expired during the
period................................. (163,566 )
(2,100)
------------------------------------------------------------
------------------
-----------------
Written options outstanding at June 30,
1996...................... $223,148
940
------------------------------------------------------------
------------------
-----------------
</TABLE>

     The following table represents the open option
contracts as of June 30,
1996:

<TABLE>
<CAPTION>
NUMBER OF
STRIKE
CONTRACTS
EXPIRATION
PRICE         VALUE
------------------------------------------------------------
------------------
---------------------------
<S>          <C>
<C>
<C>         <C>
   940       Viacom, Inc.
             (Premiums received -- $223,148)
9/20/96
$ 40       $(152,750)
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                                       65

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     7.  FORWARD FOREIGN CURRENCY CONTRACTS

     At June 30, 1996, Diversified Strategic Income
Portfolio and
International
Equity Portfolio 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
reflected in the
accompanying financial statements were as follows:

DIVERSIFIED STRATEGIC INCOME PORTFOLIO

<TABLE>
<CAPTION>
                                                      LOCAL
MARKET
SETTLEMENT     UNREALIZED
                FOREIGN CURRENCY
CURRENCY       VALUE
DATE        GAIN (LOSS)
------------------------------------------------------------
------------------
-----------------------------
<S>                                                 <C>
<C>
<C>            <C>
TO SELL:
  Spanish Peseta.................................
73,000,000    $  568,750
7/17/96       $  (6,030)
  Finnish Markka.................................
4,300,000       926,404
7/17/96          (9,560)
------------------------------------------------------------
------------------
-----------------------------

1,495,154
(15,590)
------------------------------------------------------------
------------------
-----------------------------
TO BUY:
  Japanese Yen...................................
321,310        62,420
7/1/96               5
------------------------------------------------------------
------------------
-----------------------------
TOTAL MARKET VALUE AND UNREALIZED LOSS ON FORWARD
  FOREIGN CURRENCY CONTRACTS.....................
$1,557,574
$ (15,585)
------------------------------------------------------------
------------------
-----------------------------
</TABLE>

INTERNATIONAL EQUITY PORTFOLIO

<TABLE>
<CAPTION>
                FOREIGN CURRENCY
------------------------------------------------------------
------------------
-----------------------------
<S>                                                 <C>
<C>
<C>               <C>
TO SELL:
  Japanese Yen...................................
8,527,645       $77,791
7/2/96            $(87)
------------------------------------------------------------
------------------
-----------------------------
TOTAL MARKET VALUE AND UNREALIZED LOSS ON FORWARD
  FOREIGN CURRENCY CONTRACTS.....................
$77,791
$(87)
------------------------------------------------------------
------------------
-----------------------------
</TABLE>

     8.  REPURCHASE AGREEMENTS

     The Fund purchases (and its 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 Fund requires
continual
maintenance
of the market value of the collateral in amounts at least
equal to the
repurchase price.

     9.  REVERSE REPURCHASE AGREEMENTS

     Reverse repurchase agreements may be entered into for
leveraging
purposes.
A reverse repurchase agreement involves a sale by the Fund
of securities that
it
holds with an agreement by the Fund to repurchase the same
securities at an
agreed upon price and date. A reverse repurchase agreement
involves risk that
the market value of the securities sold by the Fund may
decline below the
repurchase price of the securities. The Fund will establish
a segregated
account
with its custodian, in which the Fund will maintain cash,
U.S. government
securities or other liquid high grade debt obligations equal
in value to its
obligations with respect to the reverse repurchase
agreements.

     At June 30, 1996, there were no open reverse repurchase
agreements.

     10.  SHARES OF BENEFICIAL INTEREST

     As of June 30, 1996, the Fund had an unlimited number
of shares of
beneficial interest authorized with a par value of $0.001
per share.
Transactions in shares for each portfolio were as follows:

                                       66

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>

SIX
MONTHS

ENDED           YEAR ENDED

JUNE
30, 1996    DECEMBER 31, 1995
------------------------------------------------------------
------------------
---------------------------
<S>
<C>
<C>
MONEY MARKET PORTFOLIO
Shares
sold........................................................
 .
2,337,078          4,160,876
Shares issued on
reinvestment.......................................
146,637            302,497
Shares
redeemed....................................................
 .
(2,296,523)        (5,951,049)
------------------------------------------------------------
------------------
---------------------------
Net Increase
(Decrease).............................................
187,192         (1,487,676)
------------------------------------------------------------
------------------
---------------------------
INTERMEDIATE HIGH GRADE PORTFOLIO
Shares
sold........................................................
 .
68,463            261,586
Shares issued on
reinvestment.......................................
--            107,108
Shares
redeemed....................................................
 .
(142,688)          (218,646)
------------------------------------------------------------
------------------
---------------------------
Net Increase
(Decrease).............................................
(74,225)           150,048
------------------------------------------------------------
------------------
---------------------------
DIVERSIFIED STRATEGIC INCOME PORTFOLIO
Shares
sold........................................................
 .
141,845            257,850
Shares issued on
reinvestment.......................................
--            376,906
Shares
redeemed....................................................
 .
(350,087)          (725,789)
------------------------------------------------------------
------------------
---------------------------
Net
Decrease....................................................
 ....
(208,242)           (91,033)
------------------------------------------------------------
------------------
---------------------------
EQUITY INCOME PORTFOLIO
Shares
sold........................................................
 .
14,435            183,214
Shares issued on
reinvestment.......................................
--            253,960
Shares
redeemed....................................................
 .
(366,791)          (692,366)
------------------------------------------------------------
------------------
---------------------------
Net
Decrease....................................................
 ....
(352,356)          (255,192)
------------------------------------------------------------
------------------
---------------------------
EQUITY INDEX PORTFOLIO
Shares
sold........................................................
 .
82,643            221,160
Shares issued on
reinvestment.......................................
--             16,599
Shares
redeemed....................................................
 .
(62,740)          (135,102)
------------------------------------------------------------
------------------
---------------------------
Net
Increase....................................................
 ....
19,903            102,657
------------------------------------------------------------
------------------
---------------------------
GROWTH AND INCOME PORTFOLIO
Shares
sold........................................................
 .
46,703            115,413
Shares issued on
reinvestment.......................................
--             63,571
Shares
redeemed....................................................
 .
(148,582)          (375,361)
------------------------------------------------------------
------------------
---------------------------
Net Increase
(Decrease).............................................
(101,879)          (196,377)
------------------------------------------------------------
------------------
---------------------------
APPRECIATION PORTFOLIO
Shares
sold........................................................
 .
130,926            211,124
Shares issued on
reinvestment.......................................
--            224,994
Shares
redeemed....................................................
 .
(304,608)          (872,074)
------------------------------------------------------------
------------------
---------------------------
Net
Decrease....................................................
 ....
(173,682)          (435,956)
------------------------------------------------------------
------------------
---------------------------
EMERGING GROWTH PORTFOLIO
Shares
sold........................................................
 .
78,406            210,992
Shares issued on
reinvestment.......................................
--                 --
Shares
redeemed....................................................
 .
(116,898)          (139,884)
------------------------------------------------------------
------------------
---------------------------
Net Increase
(Decrease).............................................
(38,492)            71,108
------------------------------------------------------------
------------------
---------------------------
TOTAL RETURN PORTFOLIO
Shares
sold........................................................
 .
2,470,965          4,028,225
Shares issued on
reinvestment.......................................
--            186,081
Shares
redeemed....................................................
 .
(126,501)          (242,324)
------------------------------------------------------------
------------------
---------------------------
Net
Increase....................................................
 ....
2,344,464          3,971,982
------------------------------------------------------------
------------------
---------------------------
INTERNATIONAL EQUITY PORTFOLIO
Shares
sold........................................................
 .
213,887            282,677
Shares issued on
reinvestment.......................................
--             12,132
Shares
redeemed....................................................
 .
(151,112)          (475,871)
------------------------------------------------------------
------------------
---------------------------
Net Increase
(Decrease).............................................
62,775           (181,062)
------------------------------------------------------------
------------------
---------------------------
</TABLE>

                                       67

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     11.  ORGANIZATION COSTS

     The Fund bears all costs in connection with its
organization including
the
fees and expenses of registering and qualifying its shares
for distribution
under Federal and state securities regulations. All such
costs are being
amortized on the straight-line method over a period of five
years from
commencement of operations. If any of the initial shares of
the Fund are
redeemed during such amortization period, the Fund will be
reimbursed for any
unamortized organization costs in the same proportion as the
number of shares
redeemed bears to the number of initial shares outstanding
at the time of the
redemption.

     12.  CONCENTRATION OF RISK

     Under normal market conditions, the Money Market
Portfolio invests at
least
25% of its assets in short-term bank instruments and the
Equity Income
Portfolio
invests at least 25% of its assets in the utility industry.
Because of their
concentration policy, these Portfolios may be subject to
greater risk and
market
fluctuation than a portfolio that has securities
representing a broader range
of
investment alternatives. Various factors could adversely
affect the ability
and
inclination of companies in these industries to declare and
pay dividends or
interest and the ability of holders of securities of such
companies to realize
any value from the assets of the issuer upon liquidation or
bankruptcy.

     13.  FOREIGN SECURITIES

     Investing in securities of foreign companies and
foreign governments
involves special risks and considerations not typically
associated with
investing in U.S. companies and the U.S. Government. These
risks include
revaluation of currencies and future adverse political and
economic
developments. Moreover, securities of many foreign companies
and foreign
governments and their markets may be less liquid and their
prices more
volatile
than those of securities of comparable U.S. companies and
the U.S. Government.

     14.  CAPITAL LOSS CARRYFORWARD

     As of December 31, 1995, the following Portfolios had
available, for
Federal tax purposes, capital loss carryforwards were as
follows:

<TABLE>
<CAPTION>
                                               EXPIRING IN
THE
EXPIRING IN THE
                                                  YEAR 2003
YEAR 2002                   TOTAL
                                               -------------
--           -----
----------           ---------------
<S>                                            <C>
<C>
<C>
Intermediate High Grade Portfolio....            $        --
$
288,000               $     288,000
Diversified Strategic Income
  Portfolio..........................                808,000
801,000                   1,609,000
Equity Income Portfolio..............                538,000
1,549,000                   2,087,000
Growth & Income Portfolio............                     --
1,600                       1,600
International Equity Portfolio.......              2,460,000
56,000                   2,516,000
</TABLE>

     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. The
amount and expiration of the carryforwards are indicated
below. Expiration
occurs on December 31 in the year indicated.

     15.  SECURITIES TRADED ON A TO-BE-ANNOUNCED BASIS

     In a to-be-announced ("TBA") transaction, the Fund
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
in GNMA
transactions. Securities purchased on a TBA basis are not
settled until they
are
delivered to the Fund, 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.

     As of June 30, 1996, there were no TBA securities held.

                                       68

<PAGE>

SMITH BARNEY SERIES FUND
------------------------------------------------------------
------------------
--
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

     16.  MORTGAGE ROLL TRANSACTIONS

     A mortgage roll transaction involves a sale by the Fund
of securities
that
it holds with an agreement by the Fund to repurchase similar
securities at an
agreed upon price and date. The securities repurchased will
bear the same
interest as those sold, but generally will be collateralized
by pools of
mortgages with different prepayment histories than those
securities sold.
Proceeds of the sale will be invested and the income from
these investments,
together with any additional income from the Fund exceeding
the yield on the
securities sold.

     As of June 30, 1996, there were no open mortgage roll
transactions.

                                       69

<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 FINANCIAL HIGHLIGHTS
For a share of beneficial interest outstanding throughout
each period:

<TABLE>
<CAPTION>
            MONEY MARKET PORTFOLIO                1996(1)
1995       1994
1993      1992     1991(2)
------------------------------------------------------------
------------------
-------------------------------
<S>                                               <C>
<C>        <C>
<C>       <C>       <C>
NET ASSET VALUE, BEGINNING OF PERIOD...........    $1.000
$1.000    $
1.000    $1.000    $1.000    $1.000
------------------------------------------------------------
------------------
-------------------------------
INCOME FROM OPERATIONS:
  Net investment income (3)....................     0.019
0.052
0.035     0.023     0.027     0.005
  Dividends from net investment income.........    (0.019)
(0.052)
(0.035)   (0.023)   (0.027)   (0.005)
------------------------------------------------------------
------------------
-------------------------------
NET ASSET VALUE, END OF PERIOD.................    $1.000
$1.000
$1.000    $1.000    $1.000    $1.000
------------------------------------------------------------
------------------
-------------------------------
TOTAL RETURN...................................      1.93%++
5.31%
3.56%     2.37%     2.75%     0.53%++
------------------------------------------------------------
------------------
-------------------------------
NET ASSETS, END OF PERIOD (000'S)..............    $5,840
$5,653
$7,141    $3,703    $2,108    $  830
------------------------------------------------------------
------------------
-------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3).................................      0.75%+
0.75%
0.75%     0.75%     0.75%     0.65%+
  Net investment income........................      4.67+
5.19
3.65      2.34      2.79      3.35+
------------------------------------------------------------
------------------
-------------------------------
</TABLE>

<TABLE>
<CAPTION>
       INTERMEDIATE HIGH GRADE PORTFOLIO          1996(1)
1995       1994
1993      1992     1991(2)
------------------------------------------------------------
------------------
-------------------------------
<S>                                               <C>
<C>        <C>
<C>       <C>       <C>
NET ASSET VALUE, BEGINNING OF PERIOD...........    $10.60
$9.66
$10.69    $10.29    $10.24    $10.00
------------------------------------------------------------
------------------
-------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (3)....................      0.33
0.66
0.61      0.55      0.45      0.03
  Net realized and unrealized gain (loss)......     (0.62)
1.00
(0.94)     0.26      0.08      0.21
------------------------------------------------------------
------------------
-------------------------------
Total Income (Loss) From Operations............     (0.29)
1.66
(0.33)     0.81      0.53      0.24
------------------------------------------------------------
------------------
-------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income........................        --
(0.72)
(0.61)    (0.36)    (0.48)       --
  Net realized gains...........................        --
--
(0.09)    (0.05)       --        --
------------------------------------------------------------
------------------
-------------------------------
Total Distributions............................        --
(0.72)
(0.70)    (0.41)    (0.48)       --
------------------------------------------------------------
------------------
-------------------------------
NET ASSET VALUE, END OF PERIOD.................   $ 10.31
$10.60
$9.66    $10.69    $10.29    $10.24
------------------------------------------------------------
------------------
-------------------------------
TOTAL RETURN...................................
(2.74)%++   17.76%
(3.05)%    8.00%     5.28%     2.40%++
------------------------------------------------------------
------------------
-------------------------------
NET ASSETS, END OF PERIOD (000'S)..............   $14,951
$16,152
$13,280    $9,859    $3,621    $  697
------------------------------------------------------------
------------------
-------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3).................................      0.86%+
0.86%
0.85%     0.85%     0.85%     0.80%+
  Net investment income........................      6.39+
6.63
6.57      5.25      4.75      4.49+
------------------------------------------------------------
------------------
-------------------------------
PORTFOLIO TURNOVER RATE........................        61%
121%
90%      139%      124%       --
------------------------------------------------------------
------------------
-------------------------------
</TABLE>

(1) For the six months ended June 30, 1996 (unaudited).
(2) For the period from October 16, 1991 (commencement of
operations) to
    December 31, 1991.
(3) Expense ratios and the per share decrease in net
investment income before
    fee waivers and expense reimbursements were as follows:

<TABLE>
<CAPTION>
                                         NET INVESTMENT
INCOME
EXPENSE RATIOS WITHOUT WAIVERS AND
                                           PER SHARE
DECREASE
REIMBURSEMENTS
                        ------------------------------------
------------------
--    ---------------------------------------------
        PORTFOLIO        1996      1995      1994      1993
1992
1991     1996    1995    1994    1993    1992    1991
    -----------------   ------    ------    ------    ------
------    ----
--    ----    ----    ----    ----    ----    -----
    <S>                 <C>       <C>       <C>       <C>
<C>       <C>
<C>     <C>     <C>     <C>     <C>     <C>
    Money Market.....   $0.002    $0.005    $0.005    $0.014
$0.014
$0.034    1.25%   1.21%   1.26%   2.15%   2.18%   21.47%+
    Intermediate High
      Grade..........    0.003     0.003     0.020     0.050
0.130
0.170    0.88    0.94    1.05    1.36    2.28    26.28+
</TABLE>

 ++ Total return is not annualized, as it may not be
representative of the
    total return for the year.
 +  Annualized.

                                       70

<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of beneficial interest outstanding throughout
each period:
<TABLE>
<CAPTION>
    DIVERSIFIED STRATEGIC INCOME PORTFOLIO       1996(1)
1995       1994
1993       1992      1991(2)
------------------------------------------------------------
------------------
--------------------------------
<S>                                              <C>
<C>        <C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF PERIOD..........    $10.01
$9.18     $10.07
$9.61     $10.14    $10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (3)*..................      0.39
0.74       0.58
0.70       0.67      0.02
  Net realized and unrealized gain (loss).....     (0.08)
0.70
(0.86)      0.47      (0.53)     0.12
------------------------------------------------------------
------------------
--------------------------------
Total Income (Loss) From Operations...........      0.31
1.44
(0.28)      1.17       0.14      0.14
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income.......................        --
(0.61)
(0.58)     (0.61)     (0.67)       --
  Net realized gains..........................        --
--         --
(0.04)        --        --
  Overdistribution of net realized gains......        --
--         --
(0.05)        --        --
  Capital.....................................        --
--
(0.03)     (0.01)        --        --
------------------------------------------------------------
------------------
--------------------------------
Total Distributions...........................        --
(0.61)
(0.61)     (0.71)     (0.67)       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD................    $10.32
$10.01      $9.18
$10.07      $9.61    $10.14
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN..................................      3.10%++
16.18%
(2.81)%    12.56%      1.42%     1.40%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S).............   $59,028
$59,316    $55,260
$43,244    $19,991    $3,914
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)................................      0.89%+
0.90%
0.95%      1.00%      1.00%     0.94%+
  Net investment income.......................      6.82+
7.73       7.31
7.14       7.70      4.57+
------------------------------------------------------------
------------------
--------------------------------
PORTFOLIO TURNOVER RATE.......................        37%
46%
54%        94%        65%       --
------------------------------------------------------------
------------------
--------------------------------

<CAPTION>
           EQUITY INCOME PORTFOLIO               1996(1)
1995       1994
1993       1992      1991(2)
------------------------------------------------------------
------------------
--------------------------------
<S>                                              <C>
<C>        <C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF PERIOD..........    $12.35
$9.87     $11.55
$10.90     $10.20    $10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (3)...................      0.28
0.54       0.58
0.53       0.45      0.02
  Net realized and unrealized gain (loss).....     (0.15)
2.56
(1.75)      0.60       0.72      0.18
------------------------------------------------------------
------------------
--------------------------------
Total Income (Loss) From Operations...........      0.13
3.10
(1.17)      1.13       1.17      0.20
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income.......................        --
(0.62)
(0.49)     (0.47)     (0.47)       --
  Net realized gains..........................        --
--
(0.02)     (0.01)        --        --
------------------------------------------------------------
------------------
--------------------------------
Total Distributions...........................        --
(0.62)
(0.51)     (0.48)     (0.47)       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD................    $12.48
$12.35      $9.87
$11.55     $10.90    $10.20
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN..................................      1.05%++
32.47%
(10.20)%    10.41%     11.74%     2.00%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S).............   $48,613
$52,444    $44,417
$60,160    $25,985    $3,900
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)................................      0.91%+
0.95%
0.84%      0.87%      1.00%     0.93%+
  Net investment income.......................      4.40+
4.95       5.51
4.54       4.93      4.14+
------------------------------------------------------------
------------------
--------------------------------
PORTFOLIO TURNOVER RATE.......................        16%
33%
21%         4%         4%       --
------------------------------------------------------------
------------------
--------------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY
  TRANSACTIONS (4)............................     $0.06
$0.06         --
--         --        --
------------------------------------------------------------
------------------
--------------------------------
</TABLE>

(1) For the six months ended June 30, 1996 (unaudited).
(2) For the period from October 16, 1991 (commencement of
operations) to
    December 31, 1991.
(3) Expense ratios and the per share decrease in net
investment income before
    fee waivers and expense reimbursements were as follows:

<TABLE>
<CAPTION>
                                               NET
INVESTMENT INCOME
EXPENSE RATIOS WITHOUT WAIVERS
                                                PER SHARE
DECREASE
AND REIMBURSEMENTS
                                  --------------------------
------------------
---    --------------------------------------------
             PORTFOLIO            1996    1995    1994
1993     1992
1991     1996    1995    1994    1993    1992    1991
    ---------------------------   ----    ----    ----    --
---    -----    --
---    ----    ----    ----    ----    ----    ----
    <S>                           <C>     <C>     <C>
<C>      <C>
<C>      <C>     <C>     <C>     <C>     <C>     <C>
    Diversified Strategic
      Income...................   N/A     N/A     N/A
--    $0.03
$0.03    N/A     N/A     N/A     1.02%   1.41%   7.76%+
    Equity Income..............   N/A     N/A     N/A
N/A     0.02
0.03    N/A     N/A     N/A     N/A     1.27    8.34+
</TABLE>

(4) As of October 1995, the SEC instituted new guidelines
requiring the
    disclosure of average commissions per share.
 *  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.

                                       71

<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of beneficial interest outstanding throughout
each period:

<TABLE>
<CAPTION>
            EQUITY INDEX PORTFOLIO               1996(1)
1995       1994
1993       1992      1991(2)
------------------------------------------------------------
------------------
--------------------------------
<S>                                              <C>
<C>        <C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF PERIOD..........    $15.58
$11.69     $11.90
$11.27     $10.62    $10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME FROM OPERATIONS:
  Net investment income (3)...................      0.11
0.25       0.23
0.20       0.17      0.04
  Net realized and unrealized gain (loss).....      1.38
3.88
(0.14)      0.71       0.55      0.58
------------------------------------------------------------
------------------
--------------------------------
Total Income From Operations..................      1.49
4.13       0.09
0.91       0.72      0.62
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income.......................        --
(0.23)
(0.15)     (0.16)     (0.02)       --
  Net realized gains..........................        --
(0.01)
(0.15)     (0.12)     (0.05)       --
------------------------------------------------------------
------------------
--------------------------------
Total Distributions...........................        --
(0.24)
(0.30)     (0.28)     (0.07)       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD................    $17.07
$15.58     $11.69
$11.90     $11.27    $10.62
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN..................................      9.56%+
35.81%
0.85%      8.66%      6.74%     6.20%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S).............   $17,023
$15,230    $10,225
$8,842     $4,178    $1,733
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)................................      1.10%+
1.00%
1.00%      1.00%      1.00%     0.98%+
  Net investment income.......................      1.34+
1.84       2.10
1.77       2.10      2.91+
------------------------------------------------------------
------------------
--------------------------------
PORTFOLIO TURNOVER RATE.......................         1%
5%
1%         1%         8%       --
------------------------------------------------------------
------------------
--------------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY
  TRANSACTIONS (4)............................     $0.05
$0.05         --
--         --        --
------------------------------------------------------------
------------------
--------------------------------
</TABLE>

<TABLE>
<CAPTION>
          GROWTH & INCOME PORTFOLIO              1996(1)
1995       1994
1993       1992      1991(2)
------------------------------------------------------------
------------------
--------------------------------
<S>                                              <C>
<C>        <C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF PERIOD..........    $13.73
$10.75     $11.37
$10.68     $10.15    $10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (3)...................      0.11
0.26       0.27
0.30       0.27      0.02
  Net realized and unrealized gain (loss).....      1.23
2.99
(0.63)      0.67       0.55      0.13
------------------------------------------------------------
------------------
--------------------------------
Total Income (Loss) From Operations...........      1.34
3.25
(0.36)      0.97       0.82      0.15
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income.......................        --
(0.27)
(0.26)     (0.26)     (0.29)       --
  Overdistribution of net realized gains......        --
--         --
(0.02)        --        --
  Capital.....................................        --
--         --
--      (0.00)*      --
------------------------------------------------------------
------------------
--------------------------------
Total Distributions...........................        --
(0.27)
(0.26)     (0.28)     (0.29)       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD................    $15.07
$13.73     $10.75
$11.37     $10.68    $10.15
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN..................................      9.76%++
30.49%
(3.20)%     9.09%      8.44%     1.40%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S).............   $37,045
$35,158    $29,625
$25,549    $10,951    $1,904
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)................................      1.01%+
0.98%
0.93%      1.00%      1.00%     0.90%+
  Net investment income.......................      1.57+
2.09       2.52
2.68       3.06      4.14+
------------------------------------------------------------
------------------
--------------------------------
PORTFOLIO TURNOVER RATE.......................         4%
17%
77%        78%        78%        3%
------------------------------------------------------------
------------------
--------------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY
  TRANSACTIONS (4)............................     $0.06
$0.06         --
--         --        --
------------------------------------------------------------
------------------
--------------------------------
</TABLE>

(1) For the six months ended June 30, 1994 (unaudited).
(2) For the period from October 16, 1991 (commencement of
operations) to
    December 31, 1991.
(3) Expense ratios and the per share decrease in net
investment income before
    fee waivers and expense reimbursements were as follows:

<TABLE>
<CAPTION>
                                           NET INVESTMENT
INCOME
EXPENSE RATIOS WITHOUT WAIVERS AND
                                             PER SHARE
DECREASE
REIMBURSEMENTS
                             -------------------------------
------------------
-    ----------------------------------------------
          PORTFOLIO          1996     1995     1994     1993
1992     1991
1996     1995    1994    1993    1992    1991
    ----------------------   -----    -----    -----    ----
-    -----    ----
-    -----    ----    ----    ----    ----    -----
    <S>                      <C>      <C>      <C>      <C>
<C>      <C>
<C>      <C>     <C>     <C>     <C>     <C>
    Equity Index..........     N/A    $0.02    $0.06
$0.10    $0.15
$0.09      N/A    1.17%   1.53%   1.88%   2.89%    7.60%+
    Growth & Income.......     N/A      N/A      N/A
0.01     0.06
0.07      N/A     N/A     N/A    1.01    1.65    20.02+
</TABLE>

(4) As of October 1995, the SEC instituted new guidelines
requiring the
    disclosure of average commissions per shares.
 *  Amount represents less than $0.01.
 ++ Total return is not annualized, as it may not be
representative of the
    total return for the year.
 +  Annualized.

                                       72

<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of beneficial interest outstanding throughout
each period:
<TABLE>
<CAPTION>
           APPRECIATION PORTFOLIO               1996(1)
1995       1994
1993       1992      1991(2)
------------------------------------------------------------
------------------
--------------------------------
<S>                                             <C>
<C>        <C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF PERIOD.........    $14.39
$11.54     $11.80
$11.13     $10.49     $10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (3)..................      0.12
0.23       0.20
0.15       0.11       0.01
  Net realized and unrealized gain (loss)....      1.10
3.04      (0.32)
0.63       0.53       0.48
------------------------------------------------------------
------------------
--------------------------------
Total Income (Loss) From Operations..........      1.22
3.27      (0.12)
0.78       0.64       0.49
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income......................        --
(0.21)     (0.14)
(0.11)     (0.00)*       --
  Net realized gains.........................        --
(0.21)        --
--         --         --
------------------------------------------------------------
------------------
--------------------------------
Total Distributions..........................        --
(0.42)     (0.14)
(0.11)     (0.00)*       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD...............    $15.61
$14.39     $11.54
$11.80     $11.13     $10.49
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN.................................      8.48%++
28.84%
(1.12)%     7.03%      6.13%      4.90%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S)............   $99,812
$94,492    $80,823
$77,843    $53,450    $11,436
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)...............................      0.88%+
0.97%      0.88%
1.01%      1.00%      0.94%+
  Net investment income......................      1.56+
1.65       1.75
1.35       1.61       3.00+
------------------------------------------------------------
------------------
--------------------------------
Portfolio Turnover Rate......................        24%
43%        61%
33%        14%        --
------------------------------------------------------------
------------------
--------------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY
  TRANSACTIONS (4)...........................     $0.06
$0.06         --
--         --         --
------------------------------------------------------------
------------------
--------------------------------

<CAPTION>
          EMERGING GROWTH PORTFOLIO             1996(1)
1995       1994
1993(5)
------------------------------------------------------------
------------------
--------------------------------
<S>                                             <C>
<C>        <C>
<C>
NET ASSET VALUE, BEGINNING OF PERIOD.........    $13.76
$9.63     $10.41
$10.00
------------------------------------------------------------
------------------
--------------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income (loss) (3)...........     (0.04)
(0.03)      0.00*
0.01
  Net realized and unrealized gain (loss)....      2.49
4.16      (0.78)
0.40
------------------------------------------------------------
------------------
--------------------------------
Total Income (Loss) From Operations..........      2.45
4.13      (0.78)
0.41
------------------------------------------------------------
------------------
--------------------------------
LESS DISTRIBUTIONS FROM:
  Net investment income......................        --
--
(0.00)*       --
  Net realized gains.........................        --
--         --
--
------------------------------------------------------------
------------------
--------------------------------
Total Distributions..........................        --
--
(0.00)*       --
------------------------------------------------------------
------------------
--------------------------------
NET ASSET VALUE, END OF PERIOD...............    $16.21
$13.76      $9.63
$10.41
------------------------------------------------------------
------------------
--------------------------------
TOTAL RETURN.................................     17.81%++
42.89%
(7.48)%     4.10%++
------------------------------------------------------------
------------------
--------------------------------
NET ASSETS, END OF PERIOD (000'S)............   $19,953
$17,463    $11,539
$2,257
------------------------------------------------------------
------------------
--------------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses (3)...............................      1.21%+
1.20%      1.20%
1.05%+
  Net investment income (loss)...............     (0.57)+
(0.24)     (0.17)
1.37+
------------------------------------------------------------
------------------
--------------------------------
Portfolio Turnover Rate......................        42%
121%        66%
--
------------------------------------------------------------
------------------
--------------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY
  TRANSACTIONS (4)...........................     $0.06
$0.06         --
--
------------------------------------------------------------
------------------
--------------------------------
</TABLE>

(1) For the six months ended June 30, 1996 (unaudited).
(2) For the period from October 16, 1991 (commencement of
operations) to
    December 31, 1991.
(3) Expense ratios and the per share decrease in net
investment income before
    fee waivers and expense reimbursements were as follows:

<TABLE>
<CAPTION>
                                             NET INVESTMENT
INCOME
EXPENSE RATIOS WITHOUT WAIVERS AND
                                               PER SHARE
DECREASE
REIMBURSEMENTS
                               -----------------------------
------------------
---    --------------------------------------------
           PORTFOLIO           1996     1995     1994
1993     1992
1991     1996    1995    1994    1993    1992    1991
    ------------------------   -----    -----    -----    --
---    -----    --
---    ----    ----    ----    ----    ----    ----
    <S>                        <C>      <C>      <C>
<C>      <C>
<C>      <C>     <C>     <C>     <C>     <C>     <C>
    Appreciation............     N/A      N/A      N/A
N/A    $0.01
$0.01    N/A     N/A     N/A     N/A     1.16%   3.64%+
    Emerging Growth.........   $0.01    $0.02    $0.01
$0.06      N/A
N/A    1.30%   1.39%   1.59%   9.99%   N/A     N/A
</TABLE>

(4) As of October 1995, the SEC instituted new guidelines
requiring the
    disclosure of average commissions per share.
(5) For the period from December 3, 1993 (commencement of
operations) to
    December 31, 1993.
 *  Amount represents less than $0.01.
 ++ Total return is not annualized, as it may not be
representative of the
    total return for the year.
 +  Annualized.

                                       73

<PAGE>

SMITH BARNEY SERIES FUND

------------------------------------------------------------
------------------
--
 FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of beneficial interest outstanding throughout
each period:
<TABLE>
<CAPTION>
                     TOTAL RETURN PORTFOLIO
1996(1)
1995       1994      1993(2)
------------------------------------------------------------
------------------
-----------------------------
<S>
<C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................     $12.75
$10.78     $10.30    $10.00
------------------------------------------------------------
------------------
-----------------------------
INCOME FROM OPERATIONS:
  Net investment income
(3).....................................       0.10
0.43       0.34      0.01
  Net realized and unrealized
gain..............................       1.45
2.19       0.42*     0.29
------------------------------------------------------------
------------------
-----------------------------
Total Income From
Operations....................................       1.55
2.62       0.76      0.30
------------------------------------------------------------
------------------
-----------------------------
LESS DISTRIBUTIONS:
  Net investment
income.........................................         --
(0.41)     (0.28)       --
  Net realized
gains............................................         --
(0.24)        --        --
------------------------------------------------------------
------------------
-----------------------------
Total
Distributions.............................................
--
(0.65)     (0.28)       --
------------------------------------------------------------
------------------
-----------------------------
NET ASSET VALUE, END OF
PERIOD..................................     $14.30
$12.75     $10.78    $10.30
------------------------------------------------------------
------------------
-----------------------------
TOTAL
RETURN....................................................
12.00%++
25.04%      7.40%     3.00%++
------------------------------------------------------------
------------------
-----------------------------
NET ASSETS, END OF PERIOD
(000'S)...............................   $121,062
$78,042    $23,196    $2,777
------------------------------------------------------------
------------------
-----------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses
(3)..................................................
0.86%+
1.00%      1.00%     0.85%+
  Net investment
income.........................................       2.85+
3.80       3.84      1.93+
------------------------------------------------------------
------------------
-----------------------------
PORTFOLIO TURNOVER
RATE.........................................         49%
81%       118%       --
------------------------------------------------------------
------------------
-----------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY TRANSACTIONS
(4)...      $0.06
$0.06         --        --
------------------------------------------------------------
------------------
-----------------------------

<CAPTION>
                 INTERNATIONAL EQUITY PORTFOLIO
1996(1)
1995       1994      1993(2)
------------------------------------------------------------
------------------
-----------------------------
<S>
<C>
<C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................      $9.98
$9.21     $10.05    $10.00
------------------------------------------------------------
------------------
-----------------------------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income
(3)***..................................       0.01
0.03       0.00**    0.00**
  Net realized and unrealized gain
(loss).......................       1.47
0.78      (0.84)     0.05
------------------------------------------------------------
------------------
-----------------------------
Total Income (Loss) From
Operations.............................       1.48
0.81      (0.84)     0.05
------------------------------------------------------------
------------------
-----------------------------
LESS DISTRIBUTIONS FROM:
  Net investment
income.........................................         --
(0.04)        --        --
  Net realized
gains............................................         --
--         --        --
------------------------------------------------------------
------------------
-----------------------------
Total
Distributions.............................................
--
(0.04)        --        --
------------------------------------------------------------
------------------
-----------------------------
NET ASSET VALUE, END OF
PERIOD..................................     $11.46
$9.98      $9.21    $10.05
------------------------------------------------------------
------------------
-----------------------------
TOTAL
RETURN....................................................
14.83%++
8.80%     (8.36)%    0.50%++
------------------------------------------------------------
------------------
-----------------------------
NET ASSETS, END OF PERIOD
(000'S)...............................    $34,014
$28,979    $28,413    $5,867
------------------------------------------------------------
------------------
-----------------------------
RATIOS TO AVERAGE NET ASSETS:
  Expenses
(3)(5)...............................................
1.36%+
1.43%      1.30%     1.08%+
  Net investment income
(loss)..................................       0.23+
0.35       0.31     (0.51)+
------------------------------------------------------------
------------------
-----------------------------
Portfolio Turnover
Rate.........................................         21%
34%        12%       --
------------------------------------------------------------
------------------
-----------------------------
AVERAGE COMMISSIONS PER SHARE PAID ON EQUITY TRANSACTIONS
(4)...      $0.04
$0.01         --        --
------------------------------------------------------------
------------------
-----------------------------
(1)  For the six months ended June 30, 1996 (unaudited).
(2)  For the period from December 3, 1993 (commencement of
operations) to
December 31, 1993.
     Expense ratios and the per share decrease in net
investment income before
fees waiver and expense reimbursements were as
(3)  follows:
</TABLE>

<TABLE>
<CAPTION>
                                              NET INVESTMENT
INCOME
EXPENSE RATIOS WITHOUT
                                               PER SHARE
DECREASE
WAIVERS AND REIMBURSEMENTS
                                      ----------------------
---------------
-----------------------------------------
             PORTFOLIO                1996      1995
1994        1993
1996        1995        1994         1993
    ----------------------------      ----      ----      --
---       -----
---         ---         ----         ----
    <S>                               <C>       <C>
<C>         <C>
<C>         <C>         <C>          <C>
    Total Return................       N/A       N/A
$0.01       $0.02
N/A         N/A         1.11%        4.14%+
    International Equity........       N/A       N/A
0.00**      0.02
N/A         N/A         1.51         2.96+
(4)  As of October 1995, the SEC instituted new guidelines
requiring the
disclosure of average commissions per share.
(5)  During the six months ended June 30, 1996 and the
period ended December
31, 1995, the portfolio has earned credits from
     the custodian which reduce service fees incurred. If
the credits are
taken into consideration, the ratios of expenses to
     average net assets would be 1.33% and 1.37%,
respectively.
 *   The amount shown in this caption for each share
outstanding throughout
the period may not accord with the change in the
     aggregate gains and losses in the portfolio securities
for the period
because of the timing of purchases and withdrawals
     of shares in relation to the fluctuating market values
of the portfolio.
 **  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.
</TABLE>

                                       74

<PAGE>

                     (This page intentionally left blank.)

<PAGE>

                     (This page intentionally left blank.)

<PAGE>

                                        This report is
submitted for the
general
                                        information of the
owners of the Smith
                                        Barney Series Fund.
It is not
authorized
                                        for distribution to
prospective
                                        investors unless
accompanied or
preceded
                                        by an effective
Prospectus for the
Fund,
                                        which contains
information concerning
                                        the Fund's
investment policies, fees
and
                                        expenses, as well as
other pertinent
                                        information.

                                        SYMPHONY
                                        investments are
sponsored and managed
                                        by:
                                        Smith Barney Inc.
                                        and subsidiaries

                                        SYMPHONY
                                        is underwritten,
issued and serviced
by:
                                        IDS Life Insurance
Company and
                                        IDS Life Insurance
Company of New York


S-6225 F (8/96)