- - -------------------------------------------------------------------------------
Seligman
Cash
Management
Fund, Inc.
- - -------------------------------------------------------------------------------
A Money Market Fund
- - -------------------------------------------------------------------------------
19th Annual Report
1994
- - -------------------------------------------------------------------------------
[Logo]
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[Logo]
J.& W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Cash Management Fund, Inc., which contains information about the sales
charge, management fees, and other costs. Investments in the Fund are neither
insured nor guaranteed by the U.S. Government and there is no assurance that the
Fund will be able to maintain a stable net asset value of $1.00 per share.
Performance data quoted represents past performance and does not guarantee
future results. Investment returns will vary. Please read the prospectus
carefully before investing or sending money.
TXCM2 12/94
<PAGE>
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Seligman Cash Management Fund, Inc.
- - -------------------------------------------------------------------------------
A money market mutual fund that seeks to preserve capital and to
maximize liquidity and current income through its Prime and Government
Portfolios. The Prime Portfolio invests in high-quality money market
instruments. The Government Portfolio invests only in short-term securities
issued or guaranteed by the U.S. Government and repurchase agreements with
respect to those securities.
Highlights of 1994
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Prime Portfolio Prime Portfolio Government
Class A Class D Portfolio
December 31, 1994 December 31, 1994 December 31, 1994
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets.............................................. $194,405,543 $3,457,990 $22,035,623
------------ ---------- -----------
Net Asset Value per Share............................... $1.00 $1.00 $1.00
Number of Shareholders.................................. 9,584 141 521
----- --- ---
Dividends............................................... $.034 $.024 $.032
----- ----- -----
Net Yield per Share..................................... 3.41% 2.32% 3.18%
Effective Yield per Share with Dividends
Invested Monthly..................................... 3.46% 2.35% 3.22%
---- ---- ----
</TABLE>
1
<PAGE>
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To the Shareholders
- - -------------------------------------------------------------------------------
We are pleased to report Seligman Cash Management Fund's investment results,
portfolio holdings, and audited financial statements for the year ended December
31, 1994.
Special Note to Shareholders
Effective January 26, 1995, the net assets of Seligman Cash Management
Fund-Government Portfolio were combined with the net assets of Seligman Cash
Management Fund-Prime Portfolio, Class A shares, in a transaction approved by
shareholders of the Government Portfolio on January 17, 1995. The "Prime
Portfolio" will now be referred to as Seligman Cash Management Fund, as it is
now the sole portfolio of the Fund. For the year, Class A shares of the Prime
Portfolio provided a net annualized yield of 3.41%, and an effective or
compounded yield of 3.46% for shareholders who invested dividends in additional
shares. The Class D shares provided a net annualized yield of 2.32%, and an
effective or compounded yield of 2.35% for shareholders who invested dividends
in additional shares for the period. For both Class A and D shares, the total
investments at year end of $198.7 million were diversified among 24 issuers,
with 67.3% invested in commercial paper, 2.5% held in bank notes, 25.6% invested
in fixed time deposits, and the remaining 4.6% in bankers' acceptances. At
December 31, the average weighted maturity of the Prime Portfolio was 33 days.
The Government Portfolio provided a 3.18% net annualized yield for 1994, and a
3.22% effective yield for those shareholders who invested dividends in
additional shares. At year end, the $21.9 million of investments in the
Government Portfolio was 50.2% invested in repurchase agreements and 49.8% in
U.S. Treasury bills. The repurchase agreements are backed by U.S. Government
obligations, guaranteed as to payment of principal and interest. At December 31,
the average weighted maturity of the Government Portfolio was 34 days. Looking
back on 1994, the one generalization that can be made with confidence is that it
was a turbulent and trying year for investors. However, the Federal Reserve
Board's (FRB) six interest rate increases in 1994 pushed the federal funds
rate--the interest rate charged for interbank loans--up from 3.00% on January 3,
1994, to 5.50% on January 3, 1995, and the discount rate--the interest rate the
FRB charges member banks--up from 3.00% on December 31, 1993, to 4.75% on
December 31, 1994. These increases positively affected the yields of short-term
fixed-income securities in general, and your Fund in particular. The yield on
the three-month Treasury bill, which began 1994 at 3.08%, ended the year with an
attractive yield of 5.68%. Please refer to page 3 for a discussion with your
Portfolio Manager about your Fund's performance in 1994. For more information
about Seligman Cash Management Fund, or your investment in its shares, please
write or call the toll-free telephone numbers listed on page 15. By order of the
Board of Directors,
/s/ William C. Morris
-----------------
William C. Morris
Chairman
/s/ Ronald T. Schroeder
-------------------
Ronald T. Schroeder
President
February 3, 1995
2
<PAGE>
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Annual Performance Overview
- - -------------------------------------------------------------------------------
[photograph] Your Portfolio Manager
During the past year, John A. Tomasulo, Vice President of J. & W. Seligman
& Co. Incorporated, served as the Portfolio Manager of Seligman Cash Management
Fund. As of January 1, 1995, Leonard J. Lovito, Vice President, has resumed
portfolio management responsibilities of the Fund. Mr. Lovito also serves as
Portfolio Manager of the Seligman U.S. Government Securities Series of the
Seligman High Income Fund Series. Mr. Lovito joined Seligman in 1984 as a
fixed-income trader and has more than 11 years of fixed-income trading and
portfolio management experience.
Economic Factors Affecting Seligman Cash Management Fund
"The strong economic growth and anticipation of higher inflation, which
prompted the Federal Reserve Board to raise short-term interest rates six times,
resulted in an increased yield for your Fund in 1994."
Your Manager's Investment Strategy
"The portfolio maintained a shorter average maturity in order to take
advantage of the rise in short-term interest rates. The portfolio was also
invested in money market instruments of the highest quality available within a
diverse group of industries."
Looking Ahead
"Because the Federal Reserve Board is expected to continue to raise
short-term interest rates until it believes they are high enough to slow the
economy to a non-inflationary pace, the upward pressure on short-term rates will
remain, which translates into higher yields for your Fund. We remain committed
to purchasing the highest quality money market instruments and to stressing
diversification among industries, which is a strategy that served us well in
1994 and should continue to do so in the future."
3
<PAGE>
- - -------------------------------------------------------------------------------
Portfolios of Investments December 31, 1994
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annualized
Yield on Principal
Purchase Date Amount Value
------------- --------- -----
PRIME PORTFOLIO
<S> <C> <C> <C>
Commercial Paper -- 67.6%
Automotive -- 4.7%
Ford Motor Credit Corp., 2/23/95............................. 5.88% $ 9,400,000 $ 9,319,734
------------
Banking -- 27.6%
Banc One Corp., 2/16/95...................................... 6.21 10,200,000 10,120,236
Bankers Trust New York Corp., 1/27/95........................ 5.48 8,600,000 8,566,460
CoreStates Financial Corp., 1/18/95.......................... 5.50 8,700,000 8,677,733
J. P. Morgan & Co., 2/14/95.................................. 5.81 9,200,000 9,135,569
NationsBank Corp., 1/9/95.................................... 5.65 9,000,000 8,988,860
PNC Funding Corp., 2/21/95................................... 5.88 9,200,000 9,124,407
------------
54,613,265
------------
Capital Equipment -- 9.5%
General Electric Capital Corp., 3/9/95....................... 6.29 9,500,000 9,390,381
John Deere Capital Corp., 2/27/95............................ 5.86 9,500,000 9,413,059
------------
18,803,440
------------
Consumer Goods and Services -- 2.2%
Sara Lee Corp., 3/1/95....................................... 5.97 4,500,000 4,456,561
------------
Finance -- 18.5%
American General Finance Corp., 1/12/95...................... 5.53 8,800,000 8,785,346
AT&T Capital Corp., 1/9/95................................... 5.27 8,800,000 8,789,831
Associates Corp. of North America, 3/20/95................... 6.24 9,900,000 9,768,082
Pitney Bowes Credit Corp., 2/9/95............................ 5.74 9,200,000 9,143,589
------------
36,486,848
------------
Insurance -- 5.1%
AIG Funding, 2/7/95.......................................... 6.21 10,200,000 10,135,842
------------
Total Commercial Paper (Cost $133,815,690) $133,815,690
------------
</TABLE>
______________________
See notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
Annualized
Yield on Principal
Purchase Date Amount Value
------------- ---------- -----
PRIME PORTFOLIO (continued)
<S> <C> <C> <C>
Fixed Time Deposits -- 25.7%
ABN-AMRO Bank, Grand Cayman, 1/3/95.......................... 6.08% $9,000,000 $ 9,000,000
Bank of Nova Scotia, Grand Cayman, 1/3/95.................... 5.58 2,000,000 2,000,000
Canadian Imperial Bank of Commerce,
Grand Cayman, 1/3/95...................................... 5.89 9,000,000 9,000,000
First National Bank of Chicago,
Grand Cayman, 1/3/95...................................... 5.89 9,800,000 9,800,000
National Westminster Bank, Nassau, 1/3/95.................... 5.83 1,380,000 1,380,000
Rabo Bank, Grand Cayman, 1/3/95.............................. 5.58 9,800,000 9,800,000
Swiss Bank, Grand Cayman, 1/3/95............................. 5.58 9,800,000 9,800,000
------------
Total Fixed Time Deposits (Cost $50,780,000) ................ 50,780,000
------------
Bankers' Acceptances -- 4.6%
Republic National Bank of New York, 3/6/95................... 5.98 3,244,347 3,210,319
Republic National Bank of New York, 3/24/95.................. 6.15 6,000,000 5,917,043
------------
Total Bankers' Acceptances (Cost $9,127,362) ................ 9,127,362
------------
Bank Notes -- 2.5% (Cost $5,000,058)
National Bank of Detroit, 1/23/95............................ 5.95 5,000,000 5,000,058
------------
Total Investments-- 100.4% (Cost $198,723,110) .............. 198,723,110
Other Assets Less Liabilities-- (0.4%) ...................... (859,577)
------------
Net Assets-- 100.0% ......................................... $197,863,533
============
GOVERNMENT PORTFOLIO
Repurchase Agreements -- 49.9%
First Chicago Capital Markets, Inc., collateralized by:
$5,015,000 U.S. Treasury Notes, 7 1/4%, 8/31/1996
with a fair market value of $5,105,187 (maturing 1/3/95).. 5.32% $5,000,000 $ 5,000,000
HSBC Securities, Inc., collateralized by:
$990,000 U.S. Treasury Notes, 7 7/8%, 8/15/2001
with a fair market value of $1,020,571 (maturing 1/3/95).. 5.07 1,000,000 1,000,000
Lehman Government Securities Inc., collateralized by:
$5,170,000 U.S. Treasury Notes, 4 5/8%, 2/15/1996
with a fair market value of $5,099,229 (maturing 1/4/95).. 5.83 5,000,000 5,000,000
------------
Total Repurchase Agreements (Cost $11,000,000) .............. 11,000,000
------------
U.S. Treasury Bills -- 49.5%
U.S. Treasury Bills, 1/26/95................................. 5.16 2,000,000 1,992,931
U.S. Treasury Bills, 2/23/95................................. 5.67 4,000,000 3,967,081
U.S. Treasury Bills, 3/23/95................................. 5.58 5,000,000 4,938,125
------------
Total U.S. Treasury Bills (Cost $10,898,137) ................ 10,898,137
------------
Total Investments-- 99.4% (Cost $21,898,137) ................ 21,898,137
Other Assets Less Liabilities-- 0.6% ........................ 137,486
------------
Net Assets-- 100.0% ......................................... $ 22,035,623
============
</TABLE>
______________________
See notes to financial statements.
5
<PAGE>
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Statements of Assets and Liabilities December 31, 1994
- - -------------------------------------------------------------------------------
Prime Government
Portfolio Portfolio
--------- ----------
Assets:
Investments, at value
(see portfolios of investments):
Commercial paper .......................... $ 133,815,690 --
Fixed time deposits ....................... 50,780,000 --
Bankers' acceptances ...................... 9,127,362 --
Bank notes ................................ 5,000,058 --
Repurchase agreements ..................... -- 11,000,000
U.S. Treasury bills ....................... -- 10,898,137
------ ----------
Total investments ......................... 198,723,110 21,898,137
Cash ...................................... 173,347 142,890
Receivable for Capital Stock sold ......... 828,214 63,093
Investment in, and expenses
prepaid to, shareholder
service agent ........................... 53,288 3,912
Interest receivable ....................... 24,264 4,930
Receivable from Manager ................... 17,173 --
Other ..................................... 26,181 8,289
------ -----
Total Assets .............................. 199,845,577 22,121,251
----------- ----------
Liabilities:
Payable for Capital Stock redeemed ........ 1,633,002 41,461
Accrued expenses, taxes, and other ........ 349,042 44,167
--------- ------
Total Liabilities ......................... 1,982,044 85,628
--------- ------
Net Assets ................................ $ 197,863,533 $ 22,035,623
============= =============
Composition of Net Assets:
Capital Stock, at par ..................... $ 1,978,682 $ 220,356
Additional paid-in capital ................ 195,889,478 21,815,267
Accumulated net realized loss ............. (4,627) --
------ --------------
Net Assets:
Applicable to 194,410,170
Prime Portfolio Class A shares,
3,457,990 Prime Portfolio
Class D shares, and 22,035,623
Government Portfolio shares,
respectively, of $.01 par value
Capital Stock, equivalent to
$1.00 per share ......................... $ 197,863,533 $ 22,035,623
============= =============
______________________
See notes to financial statements.
6
<PAGE>
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Statements of Operations For the Year Ended December 31, 1994
- - -------------------------------------------------------------------------------
Prime Government
Portfolio Portfolio
__________ _________
Investment income:
Interest .................................... $ 7,618,984 $ 712,059
----------- -----------
Expenses:
Management fee .............................. 779,345 67,571
Shareholder account services ................ 424,082 36,116
Custodian services .......................... 81,152 10,621
Registration ................................ 62,359 11,873
Auditing and legal fees ..................... 52,319 5,440
Shareholder reports
and communications ........................ 30,730 1,934
Directors' fees and expenses ................ 19,084 13,022
Distribution and service fees ............... 13,027 --
Miscellaneous ............................... 24,197 3,165
------ -----
Total expenses before reimbursement ......... 1,486,295 149,742
Reimbursement of expenses ................... (16,822) --
------- -----------
Net expenses after reimbursement ............ 1,469,473 149,742
--------- -------
Net investment income and increase
in net assets from operations ............. $ 6,149,511 $ 562,317
=========== ===========
_______________________
See notes to financial statements.
7
<PAGE>
- - -------------------------------------------------------------------------------
Statements of Changes in Net Assets
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Prime Portfolio* Government Portfolio**
---------------- ----------------------
Year Ended December 31 Year Ended December 31
---------------------- ----------------------
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operations:
Increase in net assets from operations --
net investment income ............... $ 6,149,511 $ 4,261,311 $ 562,317 $ 431,063
----------- ----------- ---------- ---------
Decrease in net assets from distributions
-- net investment income -- paid to
shareholders as dividends:
Class A ............................. (6,112,909) (4,261,244) (562,317) (431,063)
Class D ............................. (36,602) (67) -- --
------- ---------- ---------- ----------
Total................................... (6,149,511) (4,261,311) (562,317) (431,063)
---------- ---------- -------- --------
Capital share transactions:
Proceeds from sale of shares-- Class A.. 326,737,207 283,374,976 28,803,604 26,399,886
Net asset value of shares issued in
payment of dividends:
Class A.............................. 5,283,819 3,743,069 442,195 356,613
Class D.............................. 28,078 59 -- --
Exchanged from associated Funds:
Class A.............................. 61,223,552 34,821,731 9,961,248 2,265,651
Class D.............................. 7,748,357 42,641 -- --
---------- ---------- -------- --------
Total................................... 401,021,013 321,982,476 39,207,047 29,022,150
----------- ----------- ---------- ----------
Cost of shares redeemed:
Class A.............................. (322,927,467) (317,506,325) (30,239,097) (38,114,506)
Class D.............................. (874,978) -- -- --
Exchanged into associated Funds:
Class A.............................. (49,813,081) (23,690,097) (2,142,210) (1,575,229)
Class D.............................. (3,469,582) (16,585) -- --
---------- ---------- -------- --------
Total................................... (377,085,108) (341,213,007) (32,381,307) (39,689,735)
------------ ------------ ----------- -----------
Increase (decrease) in net assets from
capital share transactions........... 23,935,905 (19,230,531) 6,825,740 (10,667,585)
---------- ----------- --------- -----------
Increase (decrease) in net assets....... 23,935,905 (19,230,531) 6,825,740 (10,667,585)
Net Assets:
Beginning of year....................... 173,927,628 193,158,159 15,209,883 25,877,468
----------- ----------- ---------- ----------
End of year............................. $197,863,533 $173,927,628 $22,035,623 $15,209,883
============ ============ =========== ===========
</TABLE>
__________________
*Prime Portfolio began offering Class D shares on May 3, 1993.
**The Government Portfolio offered one class of shares during the periods
presented.
See notes to financial statements.
8
<PAGE>
- - -------------------------------------------------------------------------------
Notes to Financial Statements
- - -------------------------------------------------------------------------------
1. The Fund consists of two separate investment portfolios: "Prime Portfolio"
and "Government Portfolio". Effective May 3, 1993, Prime Portfolio began
offering two classes of shares: Class A shares and Class D shares, each of which
may be acquired by investors at net asset value. All shares existing prior to
May 3, 1993, have been classified as Class A shares. Class D shares are offered
only to investors who wish to exchange their Class D shares of other associated
Funds. Class D shares are subject to a higher distribution fee and contingent
deferred sales load (CDSL) of 1% imposed on certain redemptions made within one
year of purchase. The two classes of shares represent interests in the same
portfolio of investments, have the same rights and are generally identical in
all respects except that each class bears its separate distribution and certain
class expenses and has exclusive voting rights with respect to any matter to
which a separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. The Fund uses the amortized cost method for valuing portfolio securities.
Under this method all investments purchased at a discount or premium are
valued by amortizing the difference between the original purchase price and
the maturity value of the issue over the period to maturity.
b. There is no provision for federal income or excise tax. The Fund has elected
to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized. Dividends are
declared daily and paid monthly.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. The cost of investments for federal income tax purposes is
substantially the same as the cost for financial reporting purposes.
Interest income, including the amortization of discount or premium, is
recorded as earned.
d. The Fund may enter into repurchase agreements with commercial banks and with
broker/dealers deemed to be creditworthy by J. & W. Seligman & Co.
Incorporated (the "Manager"). Securities received as collateral subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest,
at all times. Procedures have been established to monitor, on a daily basis,
the market value of repurchase agreements' underlying securities to ensure
the existence of the proper level of collateral.
e. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses, if any, are allocated daily to each class of
shares based upon the relative proportion of the value of shares outstanding
of each class. Class-specific expenses, which include distribution and
service fees and any other items that can be specifically attributed to a
particular class, are charged directly to such class.
3. The Manager manages the affairs of the Fund and provides the necessary
personnel and facilities. Compensation of all officers of the Fund, all
directors of the Fund who are employees or consultants of the Manager, and all
personnel of the Fund and the Manager is paid by the Manager. For the year ended
December 31, 1994, the Manager, at its discretion, reimbursed certain expenses
for the Prime Portfolio Class D shares. The Manager receives a fee, calculated
daily and paid monthly, equal to a per annum percentage of each portfolio's
average daily net assets.
The management fee rate of the Prime Portfolio is calculated on a sliding
scale of 0.45% to 0.375%, based on average daily net assets of all the
investment companies managed by the Manager. The management fee for the year
ended December 31, 1994, was equivalent to an annual rate of 0.44% of the
average daily net assets of the Portfolio.
For the Government Portfolio, the management fee rate is calculated on a
sliding scale of 0.40% to 0.37%, based on average daily net assets of all the
investment companies managed by the Manager. The management fee for the year
ended December 31, 1994, was equivalent to an annual rate of 0.40% of the
average daily net assets of the Portfolio.
9
<PAGE>
- - -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- - -------------------------------------------------------------------------------
Prime Portfolio, with respect to Class A shares, and Government Portfolio
have an Administration, Shareholder Services and Distribution Plan (the "Plan")
under which service organizations can enter into agreements with Seligman
Financial Services, Inc. (the "Distributor") and receive a continuing fee of up
to 0.25% on an annual basis of the respective portfolio's average daily net
assets, attributable to the particular service organizations for providing
personal services and/or the maintenance of shareholder accounts. The
Distributor, and likewise the Fund, did not make payments under the Plan with
respect to Class A shares of Prime Portfolio and shares of Government Portfolio
during the year ended December 31, 1994.
Effective May 3, 1993, the Prime Portfolio adopted a Plan with respect to
Class D shares under which service organizations can enter into agreements with
the Distributor and receive a continuing fee for providing personal services
and/or the maintenance of shareholder accounts of up to 0.25% on an annual basis
of the average daily net assets of the Class D shares for which the
organizations are responsible, and fees for providing other distribution
assistance of up to 0.75% on an annual basis of such average daily net assets.
Such fees are paid monthly by the Portfolio to the Distributor pursuant to the
Plan. For the year ended December 31, 1994, fees paid amounted to $13,027, or 1%
per annum of the average daily net assets of Class D shares.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year from purchase of
original shares which were exchanged into Prime Portfolio. For the year ended
December 31, 1994, such charges amounted to $6,468.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged at cost $420,349 to the Prime Portfolio and $33,888 to the
Government Portfolio for shareholder account services. The Fund's investment in
Seligman Data Corp. is recorded at a cost of $3,719.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor and/or Seligman Data Corp. Fees of $18,000 were
incurred for legal services of Sullivan & Cromwell, a member of which firm is a
director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The annual cost of such fees and interest is included in directors'
fees and expenses, and the accumulated balances thereof at December 31, 1994, of
$101,533 and $16,046 are included in other liabilities for the Prime Portfolio
and the Government Portfolio, respectively.
4. At December 31, 1994, there were 2,000,000,000 shares of $.01 par value
Capital Stock authorized, 1,400,000,000 shares designated to Prime Portfolio's
Class A and Class D shares and 600,000,000 shares designated to Government
Portfolio. Transactions in shares of Capital Stock can be taken from the
state-ments of changes in net assets, as all capital share transactions are
recorded at $1.00 per share. 5. Class-specific expenses charged to Prime
Portfolio Class A and Class D during the year ended December 31, 1994, which are
included in the corresponding captions of the Statements of Operations, were as
follows:
Class A Class D
-------- -------
Registration...................... $24,119 $ 500
Shareholder reports and
communications................. 6,085 43
Distribution and service fees..... -- 13,027
6. At December 31, 1994, Prime Portfolio had a net loss carryforward of $4,627,
which is available for offset against future taxable net gains, expiring in
1999. 7. On January 17, 1995, shareholders of the Government Portfolio approved
a transfer of its net assets to the Prime Portfolio Class A in a tax-free
exchange. As a result, on January 26, 1995, 21,971,609 shares of the Prime
Portfolio Class A valued at $21,971,609 were exchanged for the net assets of the
Government Portfolio. For each share of Capital Stock owned, shareholders of the
Government Portfolio received one share of Capital Stock of the Prime Portfolio
Class A. In addition, since it is the only remaining portfolio of the Fund,
Prime Portfolio will no longer be designated as such.
10
<PAGE>
- - -------------------------------------------------------------------------------
Financial Highlights
- - -------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from the Fund's beginning net asset value to
the ending net asset value so that they can understand what effect the
individual items have on their investment, assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item, as disclosed in the financial statements,
to their equivalent per share amount.
The total return based on net asset value measures the Fund's performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends paid at net asset value, and then sold their
shares at the net asset value per share on the last day of the period. The total
returns for periods of less than one year are not annualized.
<TABLE>
<CAPTION>
Prime Portfolio
---------------------------------------------------------------------
Class A Class D
--------------------------------------------- -------------------
Year 5/3/93*
Ended to
Year Ended December 31
---------------------------------------------
1994 1993 1992 1991 1990 12/31/94 12/31/93
---- ---- ---- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period....... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income...................... .034 .024 .030 .053 .074 .024 .003
Dividends paid or declared................. (.034) (.024) (.030) (.053) (.074) (.024) (.003)
----- ----- ----- ----- ----- ----- -----
Net asset value, end of period............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ======
Total return based on
net asset value ........................ 3.46% 2.40% 3.10% 5.53% 7.53% 2.35% .30%
Ratios/Supplemental Data:
Expenses to average net assets............. .82% .77% .76% .79% .80% 1.90% 1.74%+
Net investment income to
average net assets 3.41 %2.37 %3.04 %5.34 %7.40 %2.32 %1.39%+
Net assets, end of period
(000's) omitted......................... $194,406 $173,902 $193,158 $260,297 $287,518 $3,458 $26
Without management fee waiver or
reimbursement of expenses:**
Net investment income per share............ $.023 $.029 $.052 $.013 $.002
Ratios:
Expenses to average net assets........... .86% .85% .86% 3.23% 1.83%+
Net investment income to average net assets 2.28 %2.95 %5.28% 0.99% 1.30%+
</TABLE>
_________________________
See page 12 for footnotes.
11
<PAGE>
- - -------------------------------------------------------------------------------
Financial Highlights (continued)
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Portfolio
-----------------------------------------------------
Year Ended December 31
-----------------------------------------------------
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year...................... $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income................................... .032 .023 .029 .051 .071
Dividends paid or declared.............................. (.032) (.023) (.029) (.051) (.071)
----- ----- ----- ----- -----
Net asset value, end of year............................ $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
Total return based on net asset value .................. 3.22% 2.27% 3.01% 5.25% 7.24%
Ratios/Supplemental Data:
Expenses to average net assets.......................... .87% .81% .84% .77% .83%
Net investment income
to average net assets................................ 3.18% 2.24% 2.94% 5.09% 7.13%
Net assets, end of year (000's omitted)................. $22,036 $15,210 $25,877 $28,597 $29,732
Without management fee waiver:**
Net investment income per share......................... $.022 $.028 $.050
Ratios:
Expenses to average net assets........................ .86% .89% .80%
Net investment income
to average net assets.............................. 2.19% 2.89% 5.06%
</TABLE>
________________________
* Commencement of offering of Class D shares.
** For the years 1991 to 1993, the Manager, at its discretion, waived a portion
of its management fees for the Prime and Government Portfolios, and
reimbursed certain expenses for the Prime Portfolio Class D shares for 1994.
+ Annualized.
See notes to financial statements.
12
<PAGE>
- - -------------------------------------------------------------------------------
Report of Independent Auditors
- - -------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Cash Management Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Prime Portfolio and Government Portfolio of
Seligman Cash Management Fund, Inc. as of December 31, 1994, the related
statements of operations for the year then ended and of changes in net assets
for each of the years in the two-year period then ended and the financial
highlights for the periods presented. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the Fund's custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Prime Portfolio and
Government Portfolio of Seligman Cash Management Fund, Inc. as of December 31,
1994, the results of their operations, the changes in their net assets and the
financial highlights for the respective stated periods, in conformity with
generally accepted accounting principles.
/s/ Deloitte & Touche LLP
---------------------
DELOITTE & TOUCHE LLP
New York, New York
February 3, 1995
13
<PAGE>
- - -------------------------------------------------------------------------------
Board of Directors
- - -------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
Alice S. Ilchman 3, 4
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
John E. Merow
Partner, Sullivan & Cromwell, Attorneys
Betsy S. Michel 2, 4
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
Douglas R. Nichols, Jr. 2, 4
Management Consultant
James C. Pitney 3, 4
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
Director, Public Service Enterprise Group
James Q. Riordan 3, 4
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Herman J. Schmidt 2, 4
Director, H.J. Heinz Company
Director, HON Industries, Inc.
Director, MAPCO, Inc.
Ronald T. Schroeder 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3, 4
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2, 4
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Brian T. Zino 1
Managing Director, J. & W. Seligman & Co. Incorporated
_________________________
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
14
<PAGE>
- - -------------------------------------------------------------------------------
Executive Officers
- - -------------------------------------------------------------------------------
William C. Morris
Chairman
Ronald T. Schroeder
President
Leonard J. Lovito
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- - -------------------------------------------------------------------------------
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder Services
(800) 445-1777 Retirement Plan
Services
(800) 622-4597 24-Hour Automated
Telephone Access Service
15
<PAGE>
